as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to health and human services; modifying 1.3 provisions relating to health; health department; 1.4 human services; human services department; long-term 1.5 care; medical assistance; general assistance medical 1.6 care; MinnesotaCare; state-operated services; chemical 1.7 dependency; mental health; Minnesota family investment 1.8 program and adult supports; child support enforcement; 1.9 child protection; veterans nursing homes board; 1.10 health-related licensing boards; emergency medical 1.11 services regulatory board; Minnesota state council on 1.12 disability; ombudsman for mental health and mental 1.13 retardation; ombudsman for families; modifying fees; 1.14 providing penalties; requiring reports; appropriating 1.15 money; amending Minnesota Statutes 1998, sections 1.16 13.46, subdivision 2; 13.99, by adding a subdivision; 1.17 15.059, subdivision 5a; 16C.10, subdivision 5; 31.96; 1.18 62D.11, subdivision 1; 62J.04, subdivision 3; 62J.06; 1.19 62J.07, subdivisions 1 and 3; 62J.09, subdivision 8; 1.20 62J.2930, subdivision 3; 62J.451, subdivisions 6a, 6b, 1.21 and 6c; 62J.69, by adding subdivisions; 62J.77; 1.22 62M.01; 62M.02, subdivisions 3, 4, 5, 6, 7, 9, 10, 11, 1.23 12, 17, 20, 21, and by adding a subdivision; 62M.03, 1.24 subdivisions 1 and 3; 62M.04, subdivisions 1, 2, 3, 1.25 and 4; 62M.05; 62M.06; 62M.07; 62M.09, subdivision 3; 1.26 62M.10, subdivisions 2, 5, and 7; 62M.12; 62M.15; 1.27 62Q.03, subdivision 5a; 62Q.075; 62Q.106; 62Q.19, 1.28 subdivisions 1, 2, 5a, and 6; 62R.06, subdivision 1; 1.29 62T.04; 72A.201, subdivision 4a; 122A.09, subdivision 1.30 4; 125A.08; 125A.21, subdivision 1; 125A.74, 1.31 subdivisions 1 and 2; 125A.744, subdivision 3; 1.32 125A.76, subdivision 2; 144.121, by adding a 1.33 subdivision; 144.147; 144.1483; 144.1492, subdivision 1.34 3; 144.413, subdivision 2; 144.414, subdivision 1; 1.35 144.4165; 144.56, subdivision 2b; 144.99, subdivision 1.36 1, and by adding a subdivision; 144A.073; 144A.10, by 1.37 adding subdivisions; 144A.4605, subdivision 2; 1.38 144D.01, subdivision 4; 145.924; 145.9255, 1.39 subdivisions 1 and 4; 148.5194; 245.462, subdivisions 1.40 4 and 17; 245.4711, subdivision 1; 245.4712, 1.41 subdivision 2; 245.4871, subdivisions 4 and 26; 1.42 245.4881, subdivision 1; 245B.05, subdivision 7; 1.43 245B.07, subdivisions 5, 8, and 10; 246.18, 1.44 subdivision 6; 252.28, subdivision 1; 252.32, 1.45 subdivision 3a; 252.46, subdivision 6; 253B.045, by 1.46 adding subdivisions; 253B.07, subdivision 1; 253B.185, 2.1 by adding a subdivision; 254A.07, subdivision 2; 2.2 254B.01, by adding a subdivision; 254B.02, subdivision 2.3 3; 254B.03, subdivisions 1 and 2; 254B.05, subdivision 2.4 1; 256.01, subdivisions 2, 6, and by adding a 2.5 subdivision; 256.014, by adding a subdivision; 2.6 256.485; 256.87, subdivision 1a; 256.955, subdivisions 2.7 2, 3, 4, 7, and 9; 256.9685, subdivision 1a; 256.969, 2.8 subdivision 1; 256.978, subdivision 1; 256B.04, 2.9 subdivision 16, and by adding a subdivision; 256B.055, 2.10 subdivision 3a; 256B.056, subdivision 4; 256B.057, by 2.11 adding a subdivision; 256B.0575; 256B.0625, 2.12 subdivisions 6a, 8, 8a, 13, 17, 19c, 26, 28, 30, 32, 2.13 35, and by adding subdivisions; 256B.0627, 2.14 subdivisions 1, 2, 4, 5, 8, and by adding 2.15 subdivisions; 256B.0635, subdivision 3; 256B.0911, 2.16 subdivision 6; 256B.0913, subdivisions 5, 10, and 12; 2.17 256B.0916; 256B.0917, subdivision 8; 256B.094, 2.18 subdivisions 3, 5, and 6; 256B.0951, subdivisions 1 2.19 and 3; 256B.0955; 256B.431, subdivision 17, and by 2.20 adding a subdivision; 256B.434, subdivisions 3 and 13; 2.21 256B.435; 256B.48, subdivisions 1, 1a, 1b, and 6; 2.22 256B.50, subdivision 1e; 256B.501, subdivision 8a, and 2.23 by adding a subdivision; 256B.5011, subdivisions 1 and 2.24 2; 256B.69, subdivisions 3a, 5a, 5b, 6a, 6b, and by 2.25 adding subdivisions; 256B.692, subdivision 2; 256B.75; 2.26 256B.76; 256B.77, subdivisions 7a, 8, 10, 14, and by 2.27 adding subdivisions; 256D.03, subdivision 4; 256D.06, 2.28 subdivision 5; 256F.03, subdivision 5; 256F.05, 2.29 subdivision 8; 256F.10, subdivisions 1, 4, 6, 7, 8, 2.30 and 10; 256I.04, subdivision 3; 256I.05, subdivisions 2.31 1, 1a, and by adding a subdivision; 256J.02, 2.32 subdivision 2; 256J.08, subdivisions 11, 65, 82, 86a, 2.33 and by adding subdivisions; 256J.11, subdivisions 2 2.34 and 3; 256J.12, subdivisions 1a and 2; 256J.14; 2.35 256J.20, subdivision 3; 256J.21, subdivisions 2, 3, 2.36 and 4; 256J.24, subdivisions 2, 3, 7, 8, and 9; 2.37 256J.26, subdivision 1; 256J.30, subdivisions 2, 7, 8, 2.38 and 9; 256J.31, subdivisions 5 and 12; 256J.32, 2.39 subdivisions 4 and 6; 256J.33; 256J.34, subdivisions 2.40 1, 3, and 4; 256J.35; 256J.36; 256J.37, subdivisions 2.41 1, 1a, 2, 9, and 10; 256J.38, subdivision 4; 256J.39, 2.42 subdivision 1; 256J.42, subdivisions 1 and 5; 256J.43; 2.43 256J.45, subdivision 1, and by adding a subdivision; 2.44 256J.46, subdivisions 1, 2, and 2a; 256J.47, 2.45 subdivision 4; 256J.48, subdivisions 2 and 3; 256J.50, 2.46 subdivision 1; 256J.515; 256J.52, subdivisions 1, 3, 2.47 4, 5, and by adding a subdivision; 256J.54, 2.48 subdivision 2; 256J.55, subdivision 4; 256J.56; 2.49 256J.62, subdivisions 1, 6, 7, 8, 9, and by adding a 2.50 subdivision; 256J.67, subdivision 4; 256J.74, 2.51 subdivision 2; 256J.76, subdivisions 1, 2, and 4; 2.52 256L.01, subdivision 4; 256L.04, subdivisions 2, 8, 2.53 and 13; 256L.05, subdivision 4; 256L.06, subdivision 2.54 3; 256L.07; 256L.15, subdivisions 1, 1b, and 2; 2.55 257.071, subdivisions 1, 1d, and 4; 257.62, 2.56 subdivision 5; 257.75, subdivision 2; 257.85, 2.57 subdivisions 2, 3, 7, 9, and 11; 259.29, subdivision 2.58 2; 259.67, subdivisions 6 and 7; 259.73; 259.85, 2.59 subdivisions 2, 3, and 5; 259.89, by adding a 2.60 subdivision; 260.012; 260.015, subdivisions 13 and 29; 2.61 260.131, subdivision 1a; 260.133, subdivision 1; 2.62 260.135, by adding a subdivision; 260.155, 2.63 subdivisions 4 and 8; 260.172, subdivision 1, and by 2.64 adding a subdivision; 260.181, subdivision 3; 260.191, 2.65 subdivisions 1 and 3b; 260.192; 260.221, subdivisions 2.66 1, 1b, 1c, 3, and 5; 518.10; 518.551, by adding a 2.67 subdivision; 518.57, subdivision 3; 518.5851, by 2.68 adding a subdivision; 518.5853, by adding a 2.69 subdivision; 518.64, subdivision 2; 548.09, 2.70 subdivision 1; 548.091, subdivisions 1, 1a, 2a, 3a, 4, 2.71 10, 11, 12, and by adding a subdivision; and 552.05, 3.1 subdivision 10; Laws 1995, chapter 178, article 2, 3.2 section 46, subdivision 10; Laws 1995, chapter 207, 3.3 articles 3, section 21; and 8, section 41, as amended; 3.4 Laws 1995, chapter 257, article 1, section 35, 3.5 subdivision 1; Laws 1997, chapter 225, article 4, 3.6 section 4; proposing coding for new law in Minnesota 3.7 Statutes, chapters 62J; 62Q; 127A; 144; 144A; 144E; 3.8 145; 145A; 214; 245; 246; 252; 256B; 256J; and 518; 3.9 repealing Minnesota Statutes 1998, sections 13.99, 3.10 subdivision 19m; 62D.11, subdivisions 1b and 2; 3.11 62J.78; 62J.79; 62Q.105; 62Q.11; 62Q.30; 144.0723; 3.12 144.1475; 144.148; 144.9507, subdivision 4; 144.9511; 3.13 144A.33; 145.46; 157.011, subdivision 2; 254A.03, 3.14 subdivision 2; 254A.031; 254A.145; 254A.17, 3.15 subdivision 1a; 256.973; 256B.434, subdivision 17; 3.16 256B.501, subdivision 3g; 256B.5011, subdivision 3; 3.17 256D.053, subdivision 4; 256J.03; 256J.62, 3.18 subdivisions 2, 3, and 5; 462A.208; 462A.21, 3.19 subdivision 19; and 548.091, subdivisions 3, 5, and 6; 3.20 Laws 1997, chapter 85, article 1, section 63; Laws 3.21 1997, chapter 203, article 7, section 27; Laws 1998, 3.22 chapter 407, article 2, section 104; Minnesota Rules, 3.23 parts 4685.0100, subparts 4 and 4a; 4685.1700; and 3.24 4688.0030. 3.25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 3.26 ARTICLE 1 3.27 APPROPRIATIONS 3.28 Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 3.29 The sums shown in the columns marked "APPROPRIATIONS" are 3.30 appropriated from the general fund, or other specified fund, to 3.31 the agencies named for the purposes specified in the sections of 3.32 article 1, and are available for the fiscal years indicated for 3.33 each purpose. The figures "2000" and "2001," where used in this 3.34 article, mean the appropriation or appropriations listed under 3.35 them are available for the fiscal year ending June 30, 2000, or 3.36 June 30, 2001, respectively. Where a dollar amount appears in 3.37 parentheses, it means a reduction of an appropriation. 3.38 SUMMARY BY FUND 3.39 APPROPRIATIONS BIENNIAL 3.40 2000 2001 TOTAL 3.41 General $2,667,778,000 $2,799,383,000 $5,467,161,000 3.42 State Government 3.43 Special Revenue 35,434,000 35,176,000 70,610,000 3.44 Health Care 3.45 Access 147,306,000 178,736,000 326,042,000 3.46 Lottery Prize Fund 1,300,000 1,300,000 2,600,000 3.47 Trunk Highway 1,708,000 1,737,000 3,445,000 3.48 TOTAL $2,853,526,000 $3,016,332,000 $5,869,858,000 3.49 APPROPRIATIONS 4.1 Available for the Year 4.2 Ending June 30 4.3 2000 2001 4.4 Sec. 2. COMMISSIONER OF 4.5 HUMAN SERVICES 4.6 Subdivision 1. Total 4.7 Appropriation $2,699,817,000 $2,862,065,000 4.8 Summary by Fund 4.9 General 2,563,108,000 2,694,015,000 4.10 State Government 4.11 Special Revenue 485,000 507,000 4.12 Health Care 4.13 Access 134,924,000 166,243,000 4.14 Lottery Prize Fund 1,300,000 1,300,000 4.15 Subd. 2. Agency Management 4.16 General 28,569,000 28,777,000 4.17 State Government 4.18 Special Revenue 371,000 392,000 4.19 Health Care 4.20 Access 3,268,000 3,321,000 4.21 The amounts that may be spent from the 4.22 appropriation for each purpose are as 4.23 specified: 4.24 (a) Financial Operations 4.25 General 7,701,000 7,877,000 4.26 Health Care 4.27 Access 691,000 702,000 4.28 [RECEIPTS FOR SYSTEMS PROJECTS.] 4.29 Appropriations and federal receipts for 4.30 information system projects for MAXIS, 4.31 electronic benefit system, social 4.32 services information system, child 4.33 support enforcement, and Minnesota 4.34 medicaid information system (MMIS II) 4.35 must be deposited in the state system 4.36 account authorized in Minnesota 4.37 Statutes, section 256.014. Money 4.38 appropriated for computer projects 4.39 approved by the Minnesota office of 4.40 technology, funded by the legislature, 4.41 and approved by the commissioner of 4.42 finance may be transferred from one 4.43 project to another and from development 4.44 to operations as the commissioner of 4.45 human services considers necessary. 4.46 Any unexpended balance in the 4.47 appropriation for these projects does 4.48 not cancel but is available for ongoing 4.49 development and operations. 4.50 (b) Legal and Regulation Operations 4.51 General 6,569,000 6,671,000 4.52 State Government 5.1 Special Revenue 371,000 392,000 5.2 Health Care 5.3 Access 141,000 145,000 5.4 (c) Management Operations 5.5 General 14,299,000 14,299,000 5.6 Health Care 5.7 Access 2,436,000 2,474,000 5.8 Subd. 3. Children's Grants 5.9 General 53,692,000 54,773,000 5.10 [CRISIS NURSERY DEVELOPMENT.] Of this 5.11 appropriation, $1,000,000 in fiscal 5.12 year 2000 is appropriated to the 5.13 commissioner for grants to develop new 5.14 crisis nurseries. Preference must be 5.15 given to crisis nursery grantees under 5.16 Laws 1998, chapter 407, article 1, 5.17 section 2, subdivision 2. This is a 5.18 one-time appropriation that is 5.19 available until June 30, 2001, and 5.20 shall not become part of base level 5.21 funding for crisis nurseries for the 5.22 2002-2003 biennium. 5.23 Subd. 4. Children's Services Management 5.24 General 3,975,000 4,015,000 5.25 Subd. 5. Basic Health Care Grants 5.26 Summary by Fund 5.27 General 878,594,000 936,468,000 5.28 Health Care 5.29 Access 116,439,000 147,484,000 5.30 The amounts that may be spent from this 5.31 appropriation for each purpose are as 5.32 specified: 5.33 (a) MinnesotaCare Grants 5.34 Health Care Access 116,439,000 147,484,000 5.35 (b) Medical Assistance Basic 5.36 Health Care Grants; Families and Children 5.37 General 307,278,000 320,573,000 5.38 [COMMUNITY DENTAL CLINICS.] Of this 5.39 appropriation, $1,200,000 is for the 5.40 commissioner to provide start-up grants 5.41 to establish community dental clinics 5.42 under Minnesota Statutes, section 5.43 256B.76, paragraph (b), clause (5). 5.44 The commissioner shall award four 5.45 $150,000 grants each year, and shall 5.46 require grant recipients to match the 5.47 state grant with nonstate funding on a 5.48 one-to-one basis. This is a one-time 5.49 appropriation and shall not become part 5.50 of base level funding for this activity 5.51 for the 2002-2003 biennium. 6.1 (c) Medical Assistance Basic 6.2 Health Care Grants; Elderly and Disabled 6.3 General 410,718,000 460,456,000 6.4 [SURCHARGE COMPLIANCE.] In the event 6.5 that federal financial participation in 6.6 the Minnesota medical assistance 6.7 program is reduced as a result of a 6.8 determination that the surcharge and 6.9 intergovernmental transfers governed by 6.10 Minnesota Statutes, sections 256.9657 6.11 and 256B.19 are out of compliance with 6.12 United States Code, title 42, section 6.13 1396b(w), or its implementing 6.14 regulations or with any other federal 6.15 law designed to restrict provider tax 6.16 programs or intergovernmental 6.17 transfers, the commissioner shall 6.18 appeal the determination to the fullest 6.19 extent permitted by law and may ratably 6.20 reduce all medical assistance and 6.21 general assistance medical care 6.22 payments to providers other than the 6.23 state of Minnesota in order to 6.24 eliminate any shortfall resulting from 6.25 the reduced federal funding. Any 6.26 amount later recovered through the 6.27 appeals process shall be used to 6.28 reimburse providers for any ratable 6.29 reductions taken. 6.30 [BLOOD PRODUCTS LITIGATION.] To the 6.31 extent permitted by federal law, 6.32 Minnesota Statutes, sections 256.015, 6.33 256B.042, and 256B.15, are waived as 6.34 necessary for the limited purpose of 6.35 resolving the state's claims in 6.36 connection with In re Factor VIII or IX 6.37 Concentrate Blood Products Litigation, 6.38 MDL-986, No. 93-C7452 (N.D.III.). 6.39 (d) General Assistance Medical Care 6.40 General 144,015,000 130,068,000 6.41 (e) Basic Health Care; Nonentitlement 6.42 General 16,583,000 25,371,000 6.43 [NONPROFIT DENTAL SERVICES GRANT.] Of 6.44 this appropriation, $75,000 for the 6.45 biennium is to the commissioner for a 6.46 grant to a nonprofit dental provider 6.47 group operating a dental clinic in Clay 6.48 county, to increase access to dental 6.49 services for recipients of medical 6.50 assistance, general assistance medical 6.51 care and MinnesotaCare in the northwest 6.52 area of the state. This is a one-time 6.53 appropriation and shall not become part 6.54 of base level funding for this activity 6.55 for the 2002-2003 biennium. 6.56 Subd. 6. Basic Health Care Management 6.57 General 23,263,000 23,374,000 6.58 Health Care 6.59 Access 13,904,000 14,120,000 7.1 The amounts that may be spent from this 7.2 appropriation for each purpose are as 7.3 specified: 7.4 (a) Health Care Policy Administration 7.5 General 3,081,000 3,092,000 7.6 Health Care 7.7 Access 570,000 582,000 7.8 [MINNESOTACARE OUTREACH FEDERAL 7.9 MATCHING FUNDS.] Any federal matching 7.10 funds received as a result of the 7.11 MinnesotaCare outreach activities 7.12 authorized by Laws 1997, chapter 225, 7.13 article 7, section 2, subdivision 1, 7.14 shall be deposited in the health care 7.15 access fund. 7.16 [FEDERAL RECEIPTS FOR ADMINISTRATION.] 7.17 Receipts received as a result of 7.18 federal participation pertaining to 7.19 administrative costs of the Minnesota 7.20 health care reform waiver shall be 7.21 deposited as nondedicated revenue in 7.22 the health care access fund. Receipts 7.23 received as a result of federal 7.24 participation pertaining to grants 7.25 shall be deposited in the federal fund 7.26 and shall offset health care access 7.27 funds for payments to providers. 7.28 (b) Health Care Operations 7.29 General 20,182,000 20,282,000 7.30 Health Care 7.31 Access 13,334,000 13,538,000 7.32 [SYSTEMS CONTINUITY.] In the event of 7.33 disruption of technical systems or 7.34 computer operations, the commissioner 7.35 may use available grant appropriations 7.36 to ensure continuity of payments for 7.37 maintaining the health, safety, and 7.38 well-being of clients served by 7.39 programs administered by the department 7.40 of human services. Grant funds must be 7.41 used in a manner consistent with the 7.42 original intent of the appropriation. 7.43 [PREPAID MEDICAL PROGRAMS.] The 7.44 nonfederal share of the prepaid medical 7.45 assistance program fund, which has been 7.46 appropriated to fund county managed 7.47 care advocacy and enrollment operating 7.48 costs, shall be disbursed as grants 7.49 using either a reimbursement or block 7.50 grant mechanism and may also be 7.51 transferred between grants and nongrant 7.52 administration costs with approval of 7.53 the commissioner of finance. 7.54 [ELIGIBILITY DETERMINATION FUNDING.] 7.55 Increased federal funds for the costs 7.56 of eligibility determination and other 7.57 permitted activities that are available 7.58 to the state through section 114 of the 7.59 Personal Responsibility and Work 7.60 Opportunity Reconciliation Act, Public 8.1 Law Number 104-193, are appropriated to 8.2 the commissioner. 8.3 [MINNESOTA SENIOR HEALTH OPTIONS 8.4 PROJECT.] Of this appropriation, up to 8.5 $200,000 may be transferred to the 8.6 Minnesota senior health options project 8.7 special revenue account during the 8.8 biennium ending June 30, 2001, to serve 8.9 as matching funds. 8.10 Subd. 7. State-Operated Services 8.11 General 206,843,000 211,073,000 8.12 [REGIONAL TREATMENT CENTER POPULATION.] 8.13 If the resident population at the 8.14 regional treatment centers is projected 8.15 to be higher than the estimates upon 8.16 which the medical assistance forecast 8.17 and budget recommendations for the 8.18 2000-2001 biennium is based, the amount 8.19 of the medical assistance appropriation 8.20 that is attributable to the cost of 8.21 services that would have been provided 8.22 as an alternative to regional treatment 8.23 center services, including resources 8.24 for community placements and waivered 8.25 services for persons with mental 8.26 retardation and related conditions, is 8.27 transferred to the residential 8.28 facilities appropriation. 8.29 [LEAVE LIABILITIES.] The accrued leave 8.30 liabilities of state employees 8.31 transferred to state-operated community 8.32 service programs may be paid from the 8.33 appropriation for state operated 8.34 services. Funds set aside for this 8.35 purpose shall not exceed the amount of 8.36 the actual leave liability calculated 8.37 as of June 30, 2000, and shall be 8.38 available until expended. This 8.39 provision is effective the day 8.40 following final enactment. 8.41 The amounts that may be spent from this 8.42 appropriation for each purpose are as 8.43 specified: 8.44 (a) State-Operated Services; 8.45 Campus-Based Programs 8.46 General 185,657,000 189,309,000 8.47 [MITIGATION RELATED TO DEVELOPMENTAL 8.48 DISABILITIES DOWNSIZING.] Money 8.49 appropriated to finance mitigation 8.50 expenses related to the downsizing of 8.51 regional treatment center developmental 8.52 disabilities programs may be 8.53 transferred between fiscal years within 8.54 the biennium. 8.55 [REPAIRS AND BETTERMENTS.] The 8.56 commissioner may transfer unencumbered 8.57 appropriation balances between fiscal 8.58 years for the state residential 8.59 facilities repairs and betterments 8.60 account and special equipment. 9.1 [PROJECT LABOR.] Wages for project 9.2 labor may be paid by the commissioner 9.3 of human services out of repairs and 9.4 betterments money if the individual is 9.5 to be engaged in a construction project 9.6 or a repair project of short-term and 9.7 nonrecurring nature. Compensation for 9.8 project labor shall be based on the 9.9 prevailing wage rates, as defined in 9.10 Minnesota Statutes, section 177.42, 9.11 subdivision 6. Project laborers are 9.12 excluded from the provisions of 9.13 Minnesota Statutes, sections 43A.22 to 9.14 43A.30, and shall not be eligible for 9.15 state-paid insurance and benefits. 9.16 [DAY TRAINING SERVICES.] In order to 9.17 ensure eligible individuals have access 9.18 to day training and habilitation 9.19 services, the Minnesota extended 9.20 treatment options program and state 9.21 operated community services operating 9.22 according to Minnesota Statutes, 9.23 section 252.50, are exempt from the 9.24 provisions of Minnesota Statutes, 9.25 section 252.41, subdivision 9, clause 9.26 (2), until July 1, 2001. 9.27 The commissioner shall assure that for 9.28 persons subject to this exemption, 9.29 alternative private service options 9.30 which meet the person's needs shall be 9.31 offered to the person and their 9.32 guardian at the person's next annual 9.33 review meeting. By January 15, 2000, 9.34 the commissioner shall provide 9.35 recommendations to the legislature on 9.36 action needed to assure that the 9.37 Minnesota extended treatment option and 9.38 state-operated community services will 9.39 comply with Minnesota Statutes, section 9.40 252.41, subdivision 9, by July 1, 2001. 9.41 (b) State-Operated Community 9.42 Services; Northeast Minnesota 9.43 Mental Health Services 9.44 General 3,936,000 3,960,000 9.45 (c) State-Operated Community 9.46 Services; Statewide DD Supports 9.47 General 15,493,000 16,047,000 9.48 (d) State-Operated Services; 9.49 Enterprise Activities 9.50 General 1,757,000 1,757,000 9.51 [REGIONAL TREATMENT CENTER CHEMICAL 9.52 DEPENDENCY PROGRAMS.] When the 9.53 operations of the regional treatment 9.54 center chemical dependency fund created 9.55 in Minnesota Statutes, section 246.18, 9.56 subdivision 2, are impeded by projected 9.57 cash deficiencies resulting from delays 9.58 in the receipt of grants, dedicated 9.59 income, or other similar receivables, 9.60 and when the deficiencies would be 9.61 corrected within the budget period 9.62 involved, the commissioner of finance 10.1 may transfer general fund cash reserves 10.2 into this account as necessary to meet 10.3 cash demands. The cash flow transfers 10.4 must be returned to the general fund in 10.5 the fiscal year that the transfer was 10.6 made. Any interest earned on general 10.7 fund cash flow transfers accrues to the 10.8 general fund and not the regional 10.9 treatment center chemical dependency 10.10 fund. 10.11 Subd. 8. Continuing Care and 10.12 Community Support Grants 10.13 General 1,171,961,000 1,254,399,000 10.14 Lottery Prize Fund 1,158,000 1,158,000 10.15 The amounts that may be spent from this 10.16 appropriation for each purpose are as 10.17 specified: 10.18 (a) Community Social Services 10.19 Block Grants 10.20 42,309,000 43,201,000 10.21 (b) Consumer Support Grants 10.22 1,123,000 1,123,000 10.23 (c) Aging Adult Service Grants 10.24 8,841,000 7,265,000 10.25 [LIVING-AT-HOME/BLOCK NURSE PROGRAM.] 10.26 Of this appropriation, $576,000 for the 10.27 biennium is to expand the 10.28 living-at-home/block nurse program. Of 10.29 this amount, $480,000 for the biennium 10.30 is for the commissioner to provide 10.31 funding to twelve additional 10.32 living-at-home/block nurse programs, 10.33 and $96,000 for the biennium is for the 10.34 commissioner to provide additional 10.35 contract funding for the organization 10.36 awarded the contract for the 10.37 living-at-home/block nurse program. 10.38 [HEALTH INSURANCE COUNSELING AT AREA 10.39 AGENCIES ON AGING.] Of this 10.40 appropriation, $1,000,000 in fiscal 10.41 year 2000 is to the commissioner for 10.42 the board on aging, for the board to 10.43 award health insurance counseling and 10.44 assistance grants to the area agencies 10.45 on aging. Of this amount, $360,000 is 10.46 for the area agencies on aging to 10.47 provide state-funded health insurance 10.48 counseling services, and $640,000 is 10.49 for the board to distribute on a 10.50 competitive basis to area agencies on 10.51 aging, based on criteria that is 10.52 jointly developed by the board and the 10.53 area agencies on aging. The senior 10.54 linkage line services of the board and 10.55 the area agencies on aging must be used 10.56 to provide access to the health 10.57 insurance counseling programs. The 10.58 board shall explore opportunities for 10.59 obtaining alternative funding from 11.1 nonstate sources, including 11.2 contributions from individuals seeking 11.3 the health insurance counseling 11.4 services. This is a one-time 11.5 appropriation and shall not become part 11.6 of base level funding for this activity 11.7 for the 2002-2003 biennium. 11.8 (d) Deaf and Hard-of-Hearing 11.9 Services Grants 11.10 1,853,000 1,753,000 11.11 [DEAF-BLIND ORIENTATION AND MOBILITY 11.12 SERVICES.] Of this appropriation, 11.13 $120,000 for the biennium is to the 11.14 commissioner for a grant to DeafBlind 11.15 Services Minnesota to hire an 11.16 orientation and mobility specialist to 11.17 work with deaf-blind people. The 11.18 specialist will provide services to 11.19 deaf-blind Minnesotans, and training to 11.20 teachers and rehabilitation counselors, 11.21 on a statewide basis. This is a 11.22 one-time appropriation and shall not 11.23 become part of base level funding for 11.24 this activity for the 2002-2003 11.25 biennium. 11.26 [SERVICES TO DEAF PERSONS WITH MENTAL 11.27 ILLNESS.] Of this appropriation, 11.28 $100,000 each year is to the 11.29 commissioner for a grant to a nonprofit 11.30 agency that currently serves deaf and 11.31 hard-of-hearing adults with mental 11.32 illness through residential programs 11.33 and supported housing outreach. The 11.34 grant must be used to operate a 11.35 community support program for persons 11.36 with mental illness that is 11.37 communicatively accessible for persons 11.38 who are deaf or hard-of-hearing. This 11.39 is a one-time appropriation and shall 11.40 not become part of base level funding 11.41 for this activity for the 2002-2003 11.42 biennium. 11.43 (e) Mental Health Grants 11.44 46,930,000 46,261,000 11.45 Lottery Prize Fund 1,158,000 1,158,000 11.46 [ADOLESCENT COMPULSIVE GAMBLING GRANT.] 11.47 $150,000 each year shall be transferred 11.48 by the director of the lottery from the 11.49 lottery prize fund created under 11.50 Minnesota Statutes, section 349A.10, 11.51 subdivision 2, to the general fund. 11.52 $150,000 each year is appropriated from 11.53 the general fund to the commissioner 11.54 for the purposes of a grant to a 11.55 compulsive gambling council located in 11.56 St. Louis county for a statewide 11.57 compulsive gambling prevention and 11.58 education project for adolescents. 11.59 [ADULT MENTAL ILLNESS CRISIS HOUSING.] 11.60 Of this appropriation, $126,000 in 11.61 fiscal year 2000 and $174,000 in fiscal 11.62 year 2001 is for the adult mental 12.1 illness crisis housing assistance 12.2 program under Minnesota Statutes, 12.3 section 245.99. This is a one-time 12.4 appropriation and shall not become part 12.5 of base level funding for this activity 12.6 for the 2002-2003 biennium. 12.7 [RURAL MENTAL HEALTH SERVICES.] Of this 12.8 appropriation, $2,000,000 for the 12.9 biennium is to the commissioner for 12.10 grants to counties, private nonprofit 12.11 organizations or other entities to 12.12 provide mental health outreach, 12.13 support, intervention, assessment, 12.14 treatment and emergency services to 12.15 farm families and individuals affected 12.16 by the farm crisis. Of this amount, 12.17 $1,000,000 is for grants to the 12.18 following counties: Roseau, Kittson, 12.19 Marshall, Pennington, Red Lake, Polk, 12.20 Mahnomen, Clay, Wilkin, Becker, and 12.21 Norman. 12.22 [CRISIS INTERVENTION PROJECT 12.23 CARRYFORWARD.] Unexpended funds 12.24 appropriated to the commissioner in 12.25 Laws 1998, chapter 407, article 1, 12.26 section 2, subdivision 6, for fiscal 12.27 year 1999 for the action, support, and 12.28 prevention project of southeastern 12.29 Minnesota, do not cancel but are 12.30 available until June 30, 2000. This 12.31 provision is effective the day 12.32 following final enactment. 12.33 (f) Developmental Disabilities 12.34 Community Support Grants 12.35 11,728,000 11,900,000 12.36 [SILS FUNDING.] Of this appropriation, 12.37 $2,000,000 each year is for 12.38 semi-independent living services under 12.39 Minnesota Statutes, section 252.275. 12.40 This appropriation must be added to the 12.41 base level funding for this activity 12.42 for the 2002-2003 biennium. Unexpended 12.43 funds for fiscal year 2000 do not 12.44 cancel but are available to the 12.45 commissioner for this purpose in fiscal 12.46 year 2001. 12.47 [FAMILY SUPPORT GRANTS.] Of this 12.48 appropriation, $2,500,000 each year is 12.49 to increase the availability of family 12.50 support grants under Minnesota 12.51 Statutes, section 252.32. This 12.52 appropriation must be added to the base 12.53 level funding for this activity for the 12.54 2002-2003 biennium. Unexpended funds 12.55 for fiscal year 2000 do not cancel but 12.56 are available to the commissioner for 12.57 this purpose in fiscal year 2001. 12.58 (g) Medical Assistance Long-Term 12.59 Care Waivers and Home Care 12.60 349,152,000 418,041,000 12.61 [FISCAL YEAR 2000 AND FISCAL YEAR 2001 12.62 COMMUNITY-BASED PROVIDER RATE 13.1 INCREASE.] (1) The commissioner shall 13.2 increase reimbursement or allocation 13.3 rates by three percent on July 1, 1999, 13.4 and an additional three percent on July 13.5 1, 2000, for the following services 13.6 rendered on or after July 1, 1999: 13.7 home and community-based waiver 13.8 services for persons with mental 13.9 retardation or related conditions under 13.10 Minnesota Statutes, section 256B.501; 13.11 home and community-based waiver 13.12 services for the elderly under 13.13 Minnesota Statutes, section 256B.0915; 13.14 waivered services under community 13.15 alternatives for disabled individuals 13.16 under Minnesota Statutes, section 13.17 256B.49; community alternative care 13.18 waivered services under Minnesota 13.19 Statutes, section 256B.49; traumatic 13.20 brain injury waivered services under 13.21 Minnesota Statutes, section 256B.49; 13.22 nursing services and home health 13.23 services under Minnesota Statutes, 13.24 section 256B.0625, subdivision 6a; 13.25 personal care services and nursing 13.26 supervision of personal care services 13.27 under Minnesota Statutes, section 13.28 256B.0625, subdivision 19a; private 13.29 duty nursing services under Minnesota 13.30 Statutes, section 256B.0625, 13.31 subdivision 7; day training and 13.32 habilitation services for adults with 13.33 mental retardation or related 13.34 conditions under Minnesota Statutes, 13.35 sections 252.40 to 252.46; alternative 13.36 care services under Minnesota Statutes, 13.37 section 256B.0913; adult residential 13.38 program grants under Minnesota Rules, 13.39 parts 9535.2000 to 9535.3000; adult and 13.40 family community support grants under 13.41 Minnesota Rules, parts 9535.1700 to 13.42 9535.1760; semi-independent living 13.43 services under Minnesota Statutes, 13.44 section 252.275, including 13.45 semi-independent living services 13.46 funding under county social services 13.47 grants formerly funded under Minnesota 13.48 Statutes, chapter 256I; day treatment 13.49 under Minnesota Rules, part 9505.0323; 13.50 nonphysician services provided by 13.51 community mental health centers under 13.52 Minnesota Statutes, section 256B.0625, 13.53 subdivision 5; the skills training 13.54 component of (a) family community 13.55 support services under Minnesota 13.56 Statutes, section 256B.0625, 13.57 subdivision 35, (b) therapeutic support 13.58 of foster care under Minnesota 13.59 Statutes, section 256B.0625, 13.60 subdivision 36, and (c) home-based 13.61 treatment under Minnesota Rules, part 13.62 9505.0324; and community support 13.63 services for deaf and hard-of-hearing 13.64 adults with mental illness who use or 13.65 wish to use sign language as their 13.66 primary means of communication. 13.67 (2) For services that are administered 13.68 through the county, the county board 13.69 shall adjust provider contracts as 13.70 needed to reflect the rate increases 14.1 under this provision. 14.2 (3) It is the intention of the 14.3 legislature that the compensation 14.4 packages of direct-care staff providing 14.5 a listed service be increased by three 14.6 percent for each fiscal year. 14.7 (4) Effective January 1, 2000, and 14.8 January 1, 2001, the commissioner shall 14.9 increase capitation rates in the 14.10 prepaid medical assistance program, 14.11 prepaid general assistance medical care 14.12 program, and prepaid MinnesotaCare 14.13 program as necessary to reflect the 14.14 rate increases under this provision. 14.15 (5) Section 14, sunset of uncodified 14.16 language, does not apply to this 14.17 provision. 14.18 [DEVELOPMENTAL DISABILITIES WAIVER 14.19 SLOTS.] Of this appropriation, 14.20 $4,365,000 in fiscal year 2000 and 14.21 $11,707,000 in fiscal year 2001 is to 14.22 increase the availability of home and 14.23 community-based waiver services for 14.24 persons with mental retardation or 14.25 related conditions. 14.26 [TRAUMATIC BRAIN INJURY DEMO PROJECT.] 14.27 Of this appropriation, $50,000 in 14.28 fiscal year 2000 is for the traumatic 14.29 brain injury demonstration project. 14.30 This is a one-time appropriation and 14.31 shall not become part of the base level 14.32 funding for this activity for the 14.33 2002-2003 biennium. 14.34 (h) Medical Assistance Long-Term 14.35 Care Facilities 14.36 545,932,000 565,700,000 14.37 [ICF/MR DISALLOWANCES.] Of this 14.38 appropriation, $65,000 in fiscal 2000 14.39 is to reimburse a four-bed ICF/MR in 14.40 Ramsey county for disallowances 14.41 resulting from field audit findings. 14.42 This is a one-time appropriation and 14.43 shall not become part of base level 14.44 funding for this activity for the 14.45 2002-2003 biennium. 14.46 [OLDER ADULT SERVICES PLANNING AND 14.47 TRANSITION GRANT PROGRAM.] Of this 14.48 appropriation, $1,000,000 each year is 14.49 to implement the older adult services 14.50 planning and transition grant program 14.51 under Minnesota Statutes, section 14.52 256B.0918. These are one-time 14.53 appropriations and shall not become 14.54 part of base level funding for this 14.55 activity for the 2002-2003 biennium. 14.56 (i) Alternative Care Grants 14.57 General 54,633,000 45,029,000 14.58 [ALTERNATIVE CARE TRANSFER.] Any money 14.59 allocated to the alternative care 15.1 program that is not spent for the 15.2 purposes indicated does not cancel but 15.3 shall be transferred to the medical 15.4 assistance account. 15.5 [PREADMISSION SCREENING AMOUNT.] The 15.6 preadmission screening payment to all 15.7 counties shall continue at the payment 15.8 amount in effect for fiscal year 1999. 15.9 [PAS/AC APPROPRIATION.] The 15.10 commissioner may expend the money 15.11 appropriated for the alternative care 15.12 program for that purpose in either year 15.13 of the biennium. 15.14 (j) Group Residential Housing 15.15 General 66,759,000 70,558,000 15.16 (k) Chemical Dependency 15.17 Entitlement Grants 15.18 General 36,373,000 37,240,000 15.19 (l) Chemical Dependency 15.20 Nonentitlement Grants 15.21 General 6,328,000 6,328,000 15.22 Subd. 9. Continuing Care and 15.23 Community Support Management 15.24 General 18,260,000 18,676,000 15.25 State Government 15.26 Special Revenue 114,000 115,000 15.27 Lottery Prize Fund 142,000 142,000 15.28 [CAMP.] Of this appropriation, $15,000 15.29 each year is from the mental health 15.30 special projects account, for adults 15.31 and children with mental illness from 15.32 across the state, for a camping program 15.33 which utilizes the Boundary Waters 15.34 Canoe Area and is cooperatively 15.35 sponsored by client advocacy, mental 15.36 health treatment, and outdoor 15.37 recreation agencies. 15.38 [DEMO PROJECT EXTERNAL ADVOCACY FUNDING 15.39 CAP.] Of the appropriation for the 15.40 demonstration project for people with 15.41 disabilities under Minnesota Statutes, 15.42 section 256B.77, no more than $100,000 15.43 per year may be paid for external 15.44 advocacy under Minnesota Statutes, 15.45 section 256B.77, subdivision 14. 15.46 [COUNTY ADMINISTRATIVE COST 15.47 REIMBURSEMENT.] Of this appropriation, 15.48 $600,000 in fiscal year 2000 and 15.49 $720,000 in fiscal year 2001 is to 15.50 reimburse the nonfederal share of 15.51 county administrative costs under 15.52 Minnesota Statutes, section 256B.0916, 15.53 subdivision 2, for counties that form 15.54 partnerships consistent with the 15.55 performance measures established by the 15.56 commissioner. This is a one-time 16.1 appropriation and shall not become part 16.2 of base level funding for this activity 16.3 for the 2002-2003 biennium. 16.4 [TECHNICAL ASSISTANCE FOR COUNTY 16.5 MANAGEMENT.] Of this appropriation, 16.6 $125,000 each year for the biennium is 16.7 for the commissioner to provide 16.8 technical assistance to counties to 16.9 improve county management of the home 16.10 and community-based waiver services for 16.11 persons with mental retardation or 16.12 related conditions program, and to 16.13 assist counties in forming joint 16.14 partnerships. This is a one-time 16.15 appropriation and shall not become part 16.16 of base level funding for this activity 16.17 for the 2002-2003 biennium. 16.18 [REGION 10 QUALITY ASSURANCE 16.19 COMMISSION.] (1) Of this appropriation, 16.20 $280,000 each year is appropriated to 16.21 the commissioner for a grant to the 16.22 region 10 quality assurance commission 16.23 established under Minnesota Statutes, 16.24 section 256B.0951, for the purposes 16.25 specified in clauses (2) to (4). 16.26 Unexpended funds for fiscal year 2000 16.27 do not cancel, but are available to the 16.28 commission for fiscal year 2001. 16.29 (2) $250,000 each year is for the 16.30 operating costs of the alternative 16.31 quality assurance licensing system 16.32 pilot project, and for the commission 16.33 to provide grants to counties 16.34 participating in the alternative 16.35 quality assurance licensing system 16.36 under Minnesota Statutes, section 16.37 256B.0953. 16.38 (3) $20,000 each year is for the 16.39 commission to contract with an 16.40 independent entity to conduct a 16.41 financial review of the alternative 16.42 quality assurance licensing system, 16.43 including an evaluation of possible 16.44 budgetary savings within the affected 16.45 state agencies as the result of 16.46 implementing the system. 16.47 (4) $10,000 each year is for the 16.48 commission, in consultation with the 16.49 commissioner of human services, to 16.50 establish an ongoing review process for 16.51 the alternative quality assurance 16.52 licensing system. 16.53 Subd. 10. Economic Support Grants 16.54 General 140,919,000 123,903,000 16.55 [GIFTS.] Notwithstanding Minnesota 16.56 Statutes, chapter 7, the commissioner 16.57 may accept on behalf of the state 16.58 additional funding from sources other 16.59 than state funds for the purpose of 16.60 financing the cost of assistance 16.61 program grants or nongrant 16.62 administration. All additional funding 16.63 is appropriated to the commissioner for 17.1 use as designated by the grantee of 17.2 funding. 17.3 The amounts that may be spent from this 17.4 appropriation for each purpose are as 17.5 specified: 17.6 (a) Assistance to Families Grants 17.7 General 65,382,000 66,213,000 17.8 [FATHER PROJECT.] Of this 17.9 appropriation, $12,000 in fiscal year 17.10 2000 and $96,000 in fiscal year 2001 is 17.11 to offset the increased costs to the 17.12 state of implementing waivers for the 17.13 FATHER project. These one-time 17.14 appropriations are available until 17.15 expended, and shall not become part of 17.16 base level funding for this activity 17.17 for the 2002-2003 biennium. 17.18 [SUPPORTIVE LIVING ARRANGEMENTS FOR 17.19 MINORS.] $500,000 for the biennium is 17.20 appropriated to the commissioner for 17.21 grants to create or expand 17.22 adult-supervised supportive living 17.23 arrangements under Minnesota Statutes, 17.24 section 256J.14, for minor parents who 17.25 are MFIP participants and their 17.26 children. The commissioner shall 17.27 request proposals from, and award 17.28 grants to, interested parties that have 17.29 knowledge and experience in the area of 17.30 adolescent housing. This is a one-time 17.31 appropriation and shall not become part 17.32 of base level funding for this activity 17.33 for the 2002-2003 biennium. 17.34 (b) Work Grants 17.35 General 10,484,000 10,484,000 17.36 [EMPLOYMENT SERVICES CARRYOVER.] 17.37 General fund and federal TANF block 17.38 grant appropriations for employment 17.39 services that remain unexpended 17.40 subsequent to the reallocation process 17.41 required in Minnesota Statutes, section 17.42 256J.62, do not cancel but are 17.43 available for these purposes in fiscal 17.44 year 2001. 17.45 (c) Child Support Enforcement 17.46 General 5,359,000 5,359,000 17.47 [CHILD SUPPORT PAYMENT CENTER.] 17.48 Payments to the commissioner from other 17.49 governmental units, private 17.50 enterprises, and individuals for 17.51 services performed by the child support 17.52 payment center must be deposited in the 17.53 state systems account authorized under 17.54 Minnesota Statutes, section 256.014. 17.55 These payments are appropriated to the 17.56 commissioner for the operation of the 17.57 child support payment center or system, 17.58 according to Minnesota Statutes, 17.59 section 256.014. 18.1 [CHILD SUPPORT PAYMENT CENTER 18.2 RECOUPMENT ACCOUNT.] The child support 18.3 payment center is authorized to 18.4 establish an account to cover checks 18.5 issued in error or in cases where 18.6 insufficient funds are available to pay 18.7 the checks. All recoupments against 18.8 payments from the account must be 18.9 deposited in the child support payment 18.10 center recoupment account and are 18.11 appropriated to the commissioner for 18.12 the purposes of the account. Any 18.13 unexpended balance in the account does 18.14 not cancel, but is available until 18.15 expended. 18.16 (d) General Assistance 18.17 General 33,927,000 14,973,000 18.18 [GENERAL ASSISTANCE STANDARD.] The 18.19 commissioner shall set the monthly 18.20 standard of assistance for general 18.21 assistance units consisting of an adult 18.22 recipient who is childless and 18.23 unmarried or living apart from his or 18.24 her parents or a legal guardian at 18.25 $203. The commissioner may reduce this 18.26 amount in accordance with Laws 1997, 18.27 chapter 85, article 3, section 54. 18.28 (e) Minnesota Supplemental Aid 18.29 General 25,767,000 26,874,000 18.30 (f) Refugee Services 18.31 General .,-0-,... .,-0-,... 18.32 Subd. 11. Economic Support 18.33 Management 18.34 General 37,032,000 38,557,000 18.35 Health Care 18.36 Access 1,313,000 1,318,000 18.37 [SPENDING AUTHORITY FOR FOOD STAMP 18.38 ENHANCED FUNDING.] In the event that 18.39 Minnesota qualifies for United States 18.40 Department of Agriculture Food and 18.41 Nutrition Services Food Stamp Program 18.42 enhanced funding beginning in federal 18.43 fiscal year 1998, the money is 18.44 appropriated to the commissioner for 18.45 the purposes of the program. The 18.46 commissioner may retain 25 percent of 18.47 the enhanced funding, with the 18.48 remaining 75 percent divided among the 18.49 counties according to a formula that 18.50 takes into account each county's impact 18.51 on the statewide food stamp error rate. 18.52 The amounts that may be spent from this 18.53 appropriation for each purpose are as 18.54 specified: 18.55 (a) Economic Support Policy 18.56 Administration 18.57 General 6,832,000 6,951,000 19.1 (b) Economic Support Operations 19.2 General 30,200,000 31,606,000 19.3 Health Care 19.4 Access 1,313,000 1,318,000 19.5 [ADDITIONAL PRISM STATE SHARE.] Of this 19.6 appropriation, $2,700,000 each year is 19.7 for additional funding for the state 19.8 share of the operations of the 19.9 automated child support enforcement 19.10 system authorized under Minnesota 19.11 Statutes, section 256.014. These are 19.12 one-time appropriations and shall not 19.13 become part of base level funding for 19.14 this activity for the 2002-2003 19.15 biennium. 19.16 [PROGRAM INTEGRITY FUNDING 19.17 AVAILABILITY.] Unexpended funds 19.18 appropriated for the provision of 19.19 program integrity activities for fiscal 19.20 year 2000 are also available to the 19.21 commissioner to fund fraud prevention 19.22 and control initiatives, and do not 19.23 cancel, but are available to the 19.24 commissioner for these purposes for 19.25 fiscal year 2001. Unexpended funds may 19.26 be transferred between the fraud 19.27 prevention investigation program and 19.28 fraud control programs in order to 19.29 promote the provisions of Minnesota 19.30 Statutes, sections 256.983 and 256.9861. 19.31 Subd. 12. Federal TANF Funds 19.32 [FEDERAL TANF FUNDS.] (1) Federal 19.33 Temporary Assistance for Needy Families 19.34 block grant funds authorized under 19.35 title I of Public Law Number 104-193, 19.36 the Personal Responsibility and Work 19.37 Opportunity Reconciliation Act of 1996, 19.38 and awarded in federal fiscal years 19.39 1997 to 2002 are appropriated to the 19.40 commissioner in amounts up to 19.41 $236,425,000 in fiscal year 2000 and 19.42 $229,243,000 in fiscal year 2001. 19.43 (2) Of the amounts in clause (1), 19.44 $15,000,000 in fiscal year 2000 and 19.45 $15,000,000 in fiscal year 2001 is 19.46 transferred to the state's federal 19.47 Title XX block grant. Notwithstanding 19.48 the provisions of Minnesota Statutes, 19.49 section 256E.07, in each year of the 19.50 biennium the commissioner shall 19.51 allocate $15,000,000 of the state's 19.52 Title XX block grant funds based on the 19.53 community social services aids formula 19.54 in Minnesota Statutes, section 19.55 256E.06. The commissioner shall ensure 19.56 that money allocated to counties under 19.57 this provision is used according to the 19.58 requirements of United States Code, 19.59 title 42, section 604(d)(3)(B). Any 19.60 reductions to the amount of the 19.61 community social services block grant 19.62 in fiscal year 2000 or 2001 as a result 19.63 of these actions are one-time 19.64 reductions and shall not reduce the 20.1 base for the CSSA block grant for the 20.2 2002-2003 biennial budget. 20.3 (3) Of the amounts in clause (1), 20.4 $9,700,000 is transferred each year 20.5 from the state's federal TANF block 20.6 grant to the state's federal Title XX 20.7 block grant. Notwithstanding the 20.8 provisions of Minnesota Statutes, 20.9 section 256E.07, in each year the 20.10 commissioner shall transfer $9,700,000 20.11 of the state's Title XX block grant 20.12 funds to the family preservation 20.13 program under Minnesota Statutes, 20.14 chapter 256F. The commissioner shall 20.15 ensure that money allocated under this 20.16 provision is used according to the 20.17 requirements of United States Code, 20.18 title 42, section 604(d)(3)(B). 20.19 Unexpended funds from the first year of 20.20 the biennium may be carried forward to 20.21 the second year. These are one-time 20.22 appropriations that shall not be added 20.23 to the base for these programs for the 20.24 2002-2003 biennial budget. The funds 20.25 transferred to the family preservation 20.26 program shall be used as follows: 20.27 (a) $8,900,000 each year is to provide 20.28 grants for concurrent permanency 20.29 planning under Minnesota Statutes, 20.30 section 257.0711. These funds must be 20.31 allocated to counties based on the 20.32 allocation formula in Minnesota 20.33 Statutes, section 256F.05. When a 20.34 county is in compliance with concurrent 20.35 permanency planning requirements, it 20.36 may use excess funding from the 20.37 allocation under this provision for 20.38 other services specified in Minnesota 20.39 Statutes, chapter 256F. 20.40 (b) $400,000 each year is to provide 20.41 grants to Indian tribes for concurrent 20.42 permanency planning under Minnesota 20.43 Statutes, section 257.0711. These 20.44 funds must be allocated to tribes based 20.45 on the allocation formula in Minnesota 20.46 Statutes, section 257.3577. 20.47 (c) $400,000 each year is for the 20.48 commissioner to pay for administrative 20.49 costs associated with implementing the 20.50 concurrent permanency planning program, 20.51 to provide training, and to conduct 20.52 external reviews of county child 20.53 protection practices that are related 20.54 to the child protection services 20.55 provisions of Laws 1998, chapter 406, 20.56 article 4. 20.57 (4) Of the amounts in clause (1), 20.58 $5,000,000 each year is appropriated to 20.59 the commissioner, to be allocated to 20.60 counties and eligible tribal providers 20.61 under Minnesota Statutes, section 20.62 256J.62. Counties and eligible tribal 20.63 providers must use their allocation 20.64 under this clause to reduce the size of 20.65 the job counselor caseload of MFIP 20.66 participants. These are one-time 21.1 appropriations and shall not become 21.2 part of base level funding for the 21.3 county employment and training services 21.4 block grant for the 2002-2003 biennium. 21.5 (5) Of the amounts in clause (1), 21.6 $6,200,000 is transferred in fiscal 21.7 year 2000 from the state's federal TANF 21.8 block grant to the state's federal 21.9 Title XX block grant. Notwithstanding 21.10 the provisions of Minnesota Statutes, 21.11 section 256E.07, in fiscal year 2000 21.12 the commissioner shall allocate 21.13 $6,200,000 of the state's Title XX 21.14 block grant funds based on the 21.15 community social services aids formula 21.16 in Minnesota Statutes, section 21.17 256E.06. The commissioner shall ensure 21.18 that money allocated under this 21.19 provision is used in accordance with 21.20 the requirements of United States Code, 21.21 title 42, section 604(d)(3)(B). This 21.22 is a one-time appropriation and shall 21.23 not become part of the base level 21.24 funding for the CSSA block grant. 21.25 [TRANSFERS TO TITLE XX FOR CSSA.] When 21.26 preparing the governor's budget for the 21.27 2002-2003 biennium, the commissioner of 21.28 finance shall ensure that the base 21.29 level funding for the community social 21.30 services aids includes $12,100,000 in 21.31 fiscal year 2002 and $12,100,000 in 21.32 fiscal year 2003 in funding that is 21.33 transferred from the state's federal 21.34 TANF block grant to the state's federal 21.35 Title XX block grant. Notwithstanding 21.36 the provisions of Minnesota Statutes, 21.37 section 256E.07, the commissioner shall 21.38 allocate the portion of the state's 21.39 community social services aids funding 21.40 that is comprised of these transferred 21.41 funds based on the community social 21.42 services aids formula in Minnesota 21.43 Statutes, section 256E.06. The 21.44 commissioner shall ensure that money 21.45 allocated under this provision is used 21.46 in accordance with the requirements of 21.47 United States Code, title 42, section 21.48 604(d)(3)(B). Any reductions to the 21.49 amount of the state community social 21.50 services (CSSA) block grant funding in 21.51 fiscal year 2002 or 2003 shall not 21.52 reduce the base for the CSSA block 21.53 grant for the 2004-2005 biennial 21.54 budget. Section 14, sunset of 21.55 uncodified language, does not apply to 21.56 this provision. 21.57 [TRANSFERS FROM STATE TANF RESERVE.] 21.58 $4,666,000 in fiscal year 2000 is 21.59 transferred from the state TANF reserve 21.60 account to the general fund. 21.61 Sec. 3. COMMISSIONER OF HEALTH 21.62 Subdivision 1. Total 21.63 Appropriation 110,352,000 109,530,000 21.64 Summary by Fund 22.1 General 75,819,000 75,445,000 22.2 State Government 22.3 Special Revenue 24,688,000 24,129,000 22.4 Health Care 22.5 Access 9,845,000 9,956,000 22.6 [INDIRECT COSTS NOT TO FUND PROGRAMS.] 22.7 The commissioner shall not use indirect 22.8 cost allocations to pay for the 22.9 operational costs of any program for 22.10 which the commissioner is responsible. 22.11 Subd. 2. Health Systems 22.12 and Special Populations 78,582,000 77,271,000 22.13 Summary by Fund 22.14 General 58,787,000 57,919,000 22.15 State Government 22.16 Special Revenue 10,046,000 9,494,000 22.17 Health Care 22.18 Access 9,749,000 9,858,000 22.19 [PHARMACY INITIATIVES.] Of this general 22.20 fund appropriation, $615,000 each year 22.21 is for pharmacy initiatives. Of this 22.22 amount, $500,000 each year is for the 22.23 commissioner to award grants under 22.24 Minnesota Statutes, section 144.1499; 22.25 $75,000 each year is for the 22.26 commissioner to contract with a 22.27 statewide pharmacist association 22.28 representing all pharmacy practice 22.29 settings to administer the programs 22.30 under Minnesota Statutes, sections 22.31 144.1498 and 144.1499; and $40,000 each 22.32 year is for the commissioner's 22.33 administrative costs. These are 22.34 one-time appropriations and shall not 22.35 become part of base level funding for 22.36 this activity for the 2002-2003 22.37 biennium. 22.38 [HEALTH CARE PURCHASING ALLIANCES.] Of 22.39 this general fund appropriation, 22.40 $100,000 each year is appropriated to 22.41 the commissioner for grants to two 22.42 local organizations to develop health 22.43 care purchasing alliances under 22.44 Minnesota Statutes, section 62T.02, to 22.45 negotiate the purchase of health care 22.46 services from licensed entities. Of 22.47 this amount, $50,000 each year is for a 22.48 grant to the Southwest Regional 22.49 Development Commissioner to coordinate 22.50 purchasing alliance development in the 22.51 southwest area of the state, and 22.52 $50,000 each year is for a grant to the 22.53 University of Minnesota extension 22.54 services in Crookston to coordinate 22.55 purchasing alliance development in the 22.56 northwest area of the state. This is a 22.57 one-time appropriation and shall not 22.58 become part of base level funding for 22.59 this activity for the 2002-2003 22.60 biennium. 23.1 [WIC TRANSFERS.] The general fund 23.2 appropriation for the women, infants, 23.3 and children (WIC) food supplement 23.4 program is available for either year of 23.5 the biennium. Transfers of these funds 23.6 between fiscal years must either be to 23.7 maximize federal funds or to minimize 23.8 fluctuations in the number of program 23.9 participants. 23.10 [MINNESOTA CHILDREN WITH SPECIAL HEALTH 23.11 NEEDS CARRYOVER.] General fund 23.12 appropriations for treatment services 23.13 in the services for Minnesota children 23.14 with special health needs program are 23.15 available for either year of the 23.16 biennium. 23.17 [FAMILY PLANNING GRANTS.] Of the 23.18 general fund appropriation to the 23.19 commissioner for grants for family 23.20 planning services as defined under 23.21 Minnesota Statutes, section 145.925, 23.22 subdivision 1a, the commissioner shall 23.23 allocate grant funds for the 2000 to 23.24 2001 grant funding cycle to entities 23.25 that provide natural family planning 23.26 services, that applied for grant funds 23.27 under Minnesota Statutes, section 23.28 145.925, for the 1998 to 1999 grant 23.29 funding cycle, and that were approved 23.30 for grants but did not receive funding. 23.31 [RURAL HOSPITAL IMPROVEMENT GRANTS.] Of 23.32 this appropriation, $1,800,000 for the 23.33 biennium is from the health care access 23.34 fund to the commissioner for planning 23.35 and implementation projects under 23.36 Minnesota Statutes, section 144.147, 23.37 subdivision 2, paragraphs (a) and (b), 23.38 and $3,800,000 for the biennium is from 23.39 the health care access fund for capital 23.40 improvement planning and implementation 23.41 projects under Minnesota Statutes, 23.42 section 144.147, subdivision 2, 23.43 paragraph (c). These are one-time 23.44 appropriations that shall not be added 23.45 to the base level funding for the rural 23.46 hospital improvement grant program for 23.47 the 2002-2003 biennium. 23.48 [TOBACCO USE PREVENTION GRANTS FOR 23.49 YOUTH.] (1) Of this appropriation, 23.50 $7,500,000 each year is from the 23.51 general fund to the commissioner for 23.52 the purposes specified in clauses (2) 23.53 to (5). These are one-time 23.54 appropriations that shall not be added 23.55 to the base level funding for tobacco 23.56 use reduction and prevention activities 23.57 for the 2002-2003 biennium. 23.58 (2) $2,000,000 each year is for 23.59 competitive grants projects under 23.60 Minnesota Statutes, section 145A.135, 23.61 subdivision 1. 23.62 (3) $4,600,000 each year is for grants 23.63 to community health boards under 23.64 Minnesota Statutes, section 145A.135, 23.65 subdivision 2. 24.1 (4) $750,000 each year is available to 24.2 the commissioner for costs related to 24.3 evaluation, and is available until 24.4 expended. 24.5 (5) $150,000 each year is available to 24.6 the commissioner for administrative 24.7 costs. Unexpended funds for fiscal 24.8 year 2000 do not cancel, but are 24.9 available for this purpose in fiscal 24.10 year 2001. 24.11 [MINNESOTA DONOR DECISION CAMPAIGN.] Of 24.12 this general fund appropriation, 24.13 $1,000,000 for the biennium is to the 24.14 commissioner for a grant to fund 24.15 initiatives to encourage organ, eye and 24.16 tissue donation. The grant must be 24.17 made to a Minnesota organ procurement 24.18 organization that is certified by the 24.19 Health Care Financing Administration, 24.20 or to an entity that is a charitable 24.21 entity under section 501(c)(3) of the 24.22 Internal Revenue Code and is created by 24.23 an organ procurement organization that 24.24 is certified by the Health Care 24.25 Financing Administration. Of this 24.26 amount, $20,000 each year is to conduct 24.27 research and public opinion surveys, to 24.28 assess attitudes toward donation before 24.29 the initiatives are implemented, and to 24.30 assess the effectiveness of the 24.31 initiatives after implementation, and 24.32 $960,000 for the biennium is to develop 24.33 and implement advertising and public 24.34 education campaigns to raise awareness 24.35 about organ, tissue, and eye donation 24.36 and to encourage people to become 24.37 donors. This appropriation is 24.38 available only to the extent that it is 24.39 matched with an equal amount of 24.40 nonstate funds. This is a one-time 24.41 appropriation that is available until 24.42 expended, and shall not become part of 24.43 base level funding for this activity 24.44 for the 2002-2003 biennium. 24.45 [TEEN SUICIDE PREVENTION MATERIALS.] Of 24.46 this appropriation, $100,000 for the 24.47 biennium is for the commissioner to 24.48 collect and package informational 24.49 materials designed to raise awareness 24.50 among teens and adults about 24.51 recognizing the signs of depression in 24.52 teenagers and preventing teen 24.53 suicides. The commissioner shall 24.54 distribute the materials to schools and 24.55 other community entities through the 24.56 local community health boards. This is 24.57 a one-time appropriation and shall not 24.58 become part of base level funding for 24.59 this activity for the 2002-2003 24.60 biennium. 24.61 [STANDARDS FOR SPECIAL CASE AUTOPSIES.] 24.62 Of this general fund appropriation, 24.63 $20,000 for the biennium is for a grant 24.64 to a professional association 24.65 representing coroners and medical 24.66 examiners in Minnesota to conduct case 24.67 studies, and develop and disseminate 25.1 guidelines, for autopsy practice in 25.2 special cases. This is a one-time 25.3 appropriation and shall not become part 25.4 of base level funding for the 2002-2003 25.5 biennium. 25.6 [HEALTH PLAN COMPANY AND PROVIDER 25.7 PERFORMANCE MEASUREMENT; CONSUMER 25.8 SURVEYS.] Of this appropriation, 25.9 $1,250,000 in fiscal year 2000 and 25.10 $1,190,000 in fiscal year 2001 is to 25.11 the commissioner for a grant to the 25.12 Minnesota health data institute, for 25.13 annual reports on health plan company 25.14 performance, consumer surveys, and 25.15 annual reports on provider organization 25.16 performance measurement. These are 25.17 one-time appropriations and shall not 25.18 become part of base level funding for 25.19 this activity for the 2002-2003 25.20 biennium. 25.21 [COMMUNITY HEALTH CLINIC GRANTS.] Of 25.22 this appropriation, $1,300,000 each 25.23 year is appropriated to the 25.24 commissioner for grants to 25.25 nongovernmental community clinics 25.26 offering a sliding fee scale and 25.27 demonstrating a commitment to serve a 25.28 disproportionate share of low-income 25.29 and underserved populations, to 25.30 maintain access to health care for 25.31 low-income and uninsured populations in 25.32 both urban and rural areas. The 25.33 commissioner shall consult with the 25.34 neighborhood health care network and 25.35 the Minnesota primary care association 25.36 on the distribution of the grants. The 25.37 commissioner shall limit each grant 25.38 award to $50,000 per clinic in each 25.39 fiscal year. These are one-time 25.40 appropriations and shall not become 25.41 part of base level funding for this 25.42 activity for the 2002-2003 biennium. 25.43 [ACCESS TO SUMMARY MINIMUM DATA SET 25.44 (MDS).] The commissioner, in 25.45 cooperation with the commissioner of 25.46 administration, shall work to obtain 25.47 access to Minimum Data Set (MDS) data 25.48 that is electronically transmitted by 25.49 nursing facilities to the health 25.50 department. The MDS data shall be made 25.51 available on a quarterly basis to 25.52 industry trade associations for use in 25.53 quality improvement efforts and 25.54 comparative analysis. The MDS data 25.55 shall be provided to the industry trade 25.56 associations in the form of summary 25.57 aggregate data, without patient 25.58 identifiers, to ensure patient 25.59 privacy. The commissioner may charge 25.60 for the actual cost of production of 25.61 these documents. 25.62 Subd. 3. Health Protection 27,182,000 27,367,000 25.63 Summary by Fund 25.64 General 12,721,000 12,917,000 26.1 State Government 26.2 Special Revenue 14,461,000 14,450,000 26.3 [COLPOSCOPY SERVICES.] Of this 26.4 appropriation, $500,000 each year is 26.5 for the cancer control section to 26.6 provide free or low-cost colposcopy 26.7 services to low-income uninsured and 26.8 under insured women with abnormal Pap 26.9 test results. This is a one-time 26.10 appropriation and shall not become part 26.11 of base level funding for this activity 26.12 for the 2002-2003 biennium. 26.13 Subd. 4. Management and 26.14 Support Services 4,588,000 4,892,000 26.15 Summary by Fund 26.16 General 4,311,000 4,609,000 26.17 State Government 26.18 Special Revenue 181,000 185,000 26.19 Health Care 26.20 Access 96,000 98,000 26.21 Sec. 4. VETERANS NURSING 26.22 HOMES BOARD 25,902,000 27,114,000 26.23 [ALLOWANCE FOR FOOD.] The allowance for 26.24 food may be adjusted annually to 26.25 reflect changes in the producer price 26.26 index, as prepared by the United States 26.27 Bureau of Labor Statistics, with the 26.28 approval of the commissioner of 26.29 finance. Adjustments for fiscal year 26.30 2000 and fiscal year 2001 must be based 26.31 on the June 1998 and June 1999 producer 26.32 price index respectively, but the 26.33 adjustment must be prorated if it would 26.34 require money in excess of the 26.35 appropriation. 26.36 [ASSET PRESERVATION; FACILITY REPAIR.] 26.37 Of this general fund appropriation, 26.38 $1,190,000 each year is for asset 26.39 preservation and facility repair. The 26.40 appropriations are available in either 26.41 year of the biennium and may be used 26.42 for abatement and repair at the Luverne 26.43 home. This appropriation shall become 26.44 part of the board's base level funding 26.45 for the 2002-2003 biennium. 26.46 [VETERANS HOMES SPECIAL REVENUE 26.47 ACCOUNT.] The general fund 26.48 appropriations made to the board shall 26.49 be transferred to a veterans homes 26.50 special revenue account in the special 26.51 revenue fund in the same manner as 26.52 other receipts are deposited according 26.53 to Minnesota Statutes, section 198.34, 26.54 and are appropriated to the veterans 26.55 homes board of directors for the 26.56 operation of board facilities and 26.57 programs. 26.58 [SETTING THE COST OF CARE.] The 26.59 veterans homes board may set the cost 26.60 of care at the Fergus Falls facility 27.1 for fiscal year 2000 based on the cost 27.2 of average skilled nursing care 27.3 provided to residents of the 27.4 Minneapolis veterans home for fiscal 27.5 year 2000. The cost of care for the 27.6 domiciliary residence at the 27.7 Minneapolis veterans home and the 27.8 skilled nursing care residence at the 27.9 Luverne veterans home for fiscal years 27.10 2000 and 2001 shall be calculated based 27.11 on a full census at the respective 27.12 facility. 27.13 [LICENSED BED CAPACITY FOR MINNEAPOLIS 27.14 VETERANS HOME.] The commissioner of 27.15 health shall not reduce the licensed 27.16 bed capacity for the Minneapolis 27.17 veterans home pending completion of the 27.18 project authorized by Laws 1990, 27.19 chapter 610, article 1, section 9, 27.20 subdivision 3. 27.21 Sec. 5. HEALTH RELATED BOARDS 27.22 Subdivision 1. Total 27.23 Appropriation 10,261,000 10,540,000 27.24 [STATE GOVERNMENT SPECIAL REVENUE 27.25 FUND.] The appropriations in this 27.26 section are from the state government 27.27 special revenue fund. 27.28 [NO SPENDING IN EXCESS OF REVENUES.] 27.29 The commissioner of finance shall not 27.30 permit the allotment, encumbrance, or 27.31 expenditure of money appropriated in 27.32 this section in excess of the 27.33 anticipated biennial revenues or 27.34 accumulated surplus revenues from fees 27.35 collected by the boards. Neither this 27.36 provision nor Minnesota Statutes, 27.37 section 214.06, applies to transfers 27.38 from the general contingent account. 27.39 Subd. 2. Board of Chiropractic 27.40 Examiners 350,000 361,000 27.41 Subd. 3. Board of 27.42 Dentistry 783,000 806,000 27.43 Subd. 4. Board of Dietetic 27.44 and Nutrition Practice 92,000 95,000 27.45 Subd. 5. Board of Marriage 27.46 and Family Therapy 107,000 111,000 27.47 Subd. 6. Board of 27.48 Medical Practice 3,687,000 3,814,000 27.49 Subd. 7. Board of 27.50 Nursing 2,202,000 2,245,000 27.51 Subd. 8. Board of Nursing 27.52 Home Administrators 548,000 566,000 27.53 Subd. 9. Board of 27.54 Optometry 87,000 90,000 27.55 Subd. 10. Board of 27.56 Pharmacy 1,125,000 1,137,000 28.1 Subd. 11. Board of 28.2 Podiatry 41,000 42,000 28.3 Subd. 12. Board of 28.4 Psychology 450,000 462,000 28.5 Subd. 13. Board of 28.6 Social Work 641,000 658,000 28.7 Subd. 14. Board of 28.8 Veterinary Medicine 148,000 153,000 28.9 Sec. 6. EMERGENCY MEDICAL 28.10 SERVICES BOARD 2,500,000 2,323,000 28.11 Summary by Fund 28.12 General 792,000 586,000 28.13 Trunk Highway 1,708,000 1,737,000 28.14 [COMPREHENSIVE ADVANCED LIFE SUPPORT 28.15 (CALS).] Of the general fund 28.16 appropriation, $206,000 for the 28.17 biennium is for the board to establish 28.18 a comprehensive advanced life support 28.19 educational program under Minnesota 28.20 Statutes, section 144E.37. This is a 28.21 one-time appropriation and shall not 28.22 become part of the board's base level 28.23 funding for the 2002-2003 biennium. 28.24 Sec. 7. COUNCIL ON DISABILITY 651,000 672,000 28.25 Sec. 8. OMBUDSMAN FOR MENTAL 28.26 HEALTH AND MENTAL RETARDATION 1,340,000 1,380,000 28.27 Sec. 9. OMBUDSMAN FOR FAMILIES 166,000 171,000 28.28 Sec. 10. UNIVERSITY OF MINNESOTA 2,537,000 2,537,000 28.29 Summary by Fund 28.30 Health Care Access 2,537,000 2,537,000 28.31 Sec. 11. FISCAL YEAR 1999 APPROPRIATIONS 28.32 The sums in subdivisions 1 to 3 are 28.33 appropriated from the general fund to 28.34 the agencies for the purposes specified 28.35 in these subdivisions for fiscal year 28.36 1999. The appropriations in these 28.37 subdivisions are one time only. This 28.38 section is effective the day following 28.39 final enactment. 28.40 Subdivision 1. Veterans Nursing 28.41 Homes Board 229,000 28.42 $229,000 is added to the appropriations 28.43 in Laws 1997, chapter 203, article 1, 28.44 section 4, for lost patient revenues 28.45 due to emergency renovations. 28.46 Subd. 2. Commissioner of Human Services 19,000 28.47 $19,000 is added to the appropriations 28.48 in Laws 1997, chapter 203, article 1, 28.49 section 2, as amended by Laws 1998, 28.50 chapter 407, article 1, section 2, for 28.51 the costs associated with addressing 29.1 potential year 2000 problems. 29.2 Subd. 3. Commissioner of Health 52,000 29.3 $52,000 is added to the appropriations 29.4 in Laws 1997, chapter 203, article 1, 29.5 section 3, as amended by Laws 1998, 29.6 chapter 407, article 1, section 3, for 29.7 the costs associated with surveying all 29.8 hospitals, nursing homes, nontransient 29.9 community water systems operated by a 29.10 public entity, and community water 29.11 supply systems, for year 2000 problems 29.12 and proposed solutions. 29.13 (Effective Date: Section 11 (Fiscal year 1999 29.14 appropriations) is effective the day following final enactment.) 29.15 Sec. 12. TRANSFERS OF FUNDS 29.16 Subdivision 1. Grant Programs 29.17 The commissioner of human services, 29.18 with the approval of the commissioner 29.19 of finance, and after notification of 29.20 the chair of the senate health and 29.21 family security budget division and the 29.22 chair of the house health and human 29.23 services finance committee, may 29.24 transfer unencumbered appropriation 29.25 balances for the biennium ending June 29.26 30, 2001, within fiscal years for the 29.27 Minnesota family investment program, 29.28 general assistance, general assistance 29.29 medical care, medical assistance, 29.30 Minnesota supplemental aid, and group 29.31 residential housing programs, and the 29.32 entitlement portion of the chemical 29.33 dependency consolidated treatment fund, 29.34 and between fiscal years of the 29.35 biennium. 29.36 Subd. 2. Appropriation Transfers 29.37 Reported 29.38 In addition to the requirements of 29.39 Minnesota Statutes, section 16A.285, 29.40 when the commissioner of human services 29.41 or health, or the veterans nursing 29.42 homes board, transfers operational 29.43 money between programs under Minnesota 29.44 Statutes, section 16A.285, the affected 29.45 commissioner or the board chair must 29.46 provide the chairs of the house health 29.47 and human services finance committee 29.48 and the senate health and family 29.49 security budget division with 29.50 sufficient detail to identify the 29.51 account to which the money was 29.52 originally appropriated, and the 29.53 account to which the money is being 29.54 transferred. Section 14, sunset of 29.55 uncodified language, does not apply to 29.56 this provision. 29.57 Sec. 13. CARRYOVER LIMITATION 29.58 None of the appropriations in this act 29.59 which are allowed to be carried forward 29.60 from fiscal year 2000 to fiscal year 30.1 2001 shall become part of the base 30.2 level funding for the 2002-2003 30.3 biennial budget, unless specifically 30.4 directed by the legislature. 30.5 Sec. 14. SUNSET OF UNCODIFIED LANGUAGE 30.6 All uncodified language contained in 30.7 this article expires on June 30, 2001, 30.8 unless a different expiration date is 30.9 explicit. 30.10 Sec. 15. Minnesota Statutes 1998, section 256.01, 30.11 subdivision 2, is amended to read: 30.12 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 30.13 section 241.021, subdivision 2, the commissioner of human 30.14 services shall: 30.15 (1) Administer and supervise all forms of public assistance 30.16 provided for by state law and other welfare activities or 30.17 services as are vested in the commissioner. Administration and 30.18 supervision of human services activities or services includes, 30.19 but is not limited to, assuring timely and accurate distribution 30.20 of benefits, completeness of service, and quality program 30.21 management. In addition to administering and supervising human 30.22 services activities vested by law in the department, the 30.23 commissioner shall have the authority to: 30.24 (a) require county agency participation in training and 30.25 technical assistance programs to promote compliance with 30.26 statutes, rules, federal laws, regulations, and policies 30.27 governing human services; 30.28 (b) monitor, on an ongoing basis, the performance of county 30.29 agencies in the operation and administration of human services, 30.30 enforce compliance with statutes, rules, federal laws, 30.31 regulations, and policies governing welfare services and promote 30.32 excellence of administration and program operation; 30.33 (c) develop a quality control program or other monitoring 30.34 program to review county performance and accuracy of benefit 30.35 determinations; 30.36 (d) require county agencies to make an adjustment to the 30.37 public assistance benefits issued to any individual consistent 30.38 with federal law and regulation and state law and rule and to 30.39 issue or recover benefits as appropriate; 31.1 (e) delay or deny payment of all or part of the state and 31.2 federal share of benefits and administrative reimbursement 31.3 according to the procedures set forth in section 256.017; 31.4 (f) make contracts with and grants to public and private 31.5 agencies and organizations, both profit and nonprofit, and 31.6 individuals, using appropriated funds; and 31.7 (g) enter into contractual agreements with federally 31.8 recognized Indian tribes with a reservation in Minnesota to the 31.9 extent necessary for the tribe to operate a federally approved 31.10 family assistance program or any other program under the 31.11 supervision of the commissioner. The commissioner shall consult 31.12 with the affected county or counties in the contractual 31.13 agreement negotiations, if the county or counties wish to be 31.14 included, in order to avoid the duplication of county and tribal 31.15 assistance program services. The commissioner may establish 31.16 necessary accounts for the purposes of receiving and disbursing 31.17 funds as necessary for the operation of the programs. 31.18 (2) Inform county agencies, on a timely basis, of changes 31.19 in statute, rule, federal law, regulation, and policy necessary 31.20 to county agency administration of the programs. 31.21 (3) Administer and supervise all child welfare activities; 31.22 promote the enforcement of laws protecting handicapped, 31.23 dependent, neglected and delinquent children, and children born 31.24 to mothers who were not married to the children's fathers at the 31.25 times of the conception nor at the births of the children; 31.26 license and supervise child-caring and child-placing agencies 31.27 and institutions; supervise the care of children in boarding and 31.28 foster homes or in private institutions; and generally perform 31.29 all functions relating to the field of child welfare now vested 31.30 in the state board of control. 31.31 (4) Administer and supervise all noninstitutional service 31.32 to handicapped persons, including those who are visually 31.33 impaired, hearing impaired, or physically impaired or otherwise 31.34 handicapped. The commissioner may provide and contract for the 31.35 care and treatment of qualified indigent children in facilities 31.36 other than those located and available at state hospitals when 32.1 it is not feasible to provide the service in state hospitals. 32.2 (5) Assist and actively cooperate with other departments, 32.3 agencies and institutions, local, state, and federal, by 32.4 performing services in conformity with the purposes of Laws 32.5 1939, chapter 431. 32.6 (6) Act as the agent of and cooperate with the federal 32.7 government in matters of mutual concern relative to and in 32.8 conformity with the provisions of Laws 1939, chapter 431, 32.9 including the administration of any federal funds granted to the 32.10 state to aid in the performance of any functions of the 32.11 commissioner as specified in Laws 1939, chapter 431, and 32.12 including the promulgation of rules making uniformly available 32.13 medical care benefits to all recipients of public assistance, at 32.14 such times as the federal government increases its participation 32.15 in assistance expenditures for medical care to recipients of 32.16 public assistance, the cost thereof to be borne in the same 32.17 proportion as are grants of aid to said recipients. 32.18 (7) Establish and maintain any administrative units 32.19 reasonably necessary for the performance of administrative 32.20 functions common to all divisions of the department. 32.21 (8) Act as designated guardian of both the estate and the 32.22 person of all the wards of the state of Minnesota, whether by 32.23 operation of law or by an order of court, without any further 32.24 act or proceeding whatever, except as to persons committed as 32.25 mentally retarded. For children under the guardianship of the 32.26 commissioner whose interests would be best served by adoptive 32.27 placement, the commissioner may contract with a licensed 32.28 child-placing agency to provide adoption services. A contract 32.29 with a licensed child-placing agency must be designed to 32.30 supplement existing county efforts and may not replace existing 32.31 county programs, unless the replacement is agreed to by the 32.32 county board and the appropriate exclusive bargaining 32.33 representative or the commissioner has evidence that child 32.34 placements of the county continue to be substantially below that 32.35 of other counties. 32.36 (9) Act as coordinating referral and informational center 33.1 on requests for service for newly arrived immigrants coming to 33.2 Minnesota. 33.3 (10) The specific enumeration of powers and duties as 33.4 hereinabove set forth shall in no way be construed to be a 33.5 limitation upon the general transfer of powers herein contained. 33.6 (11) Establish county, regional, or statewide schedules of 33.7 maximum fees and charges which may be paid by county agencies 33.8 for medical, dental, surgical, hospital, nursing and nursing 33.9 home care and medicine and medical supplies under all programs 33.10 of medical care provided by the state and for congregate living 33.11 care under the income maintenance programs. 33.12 (12) Have the authority to conduct and administer 33.13 experimental projects to test methods and procedures of 33.14 administering assistance and services to recipients or potential 33.15 recipients of public welfare. To carry out such experimental 33.16 projects, it is further provided that the commissioner of human 33.17 services is authorized to waive the enforcement of existing 33.18 specific statutory program requirements, rules, and standards in 33.19 one or more counties. The order establishing the waiver shall 33.20 provide alternative methods and procedures of administration, 33.21 shall not be in conflict with the basic purposes, coverage, or 33.22 benefits provided by law, and in no event shall the duration of 33.23 a project exceed four years. It is further provided that no 33.24 order establishing an experimental project as authorized by the 33.25 provisions of this section shall become effective until the 33.26 following conditions have been met: 33.27 (a) The secretary of health, education, and welfare of the 33.28 United States has agreed, for the same project, to waive state 33.29 plan requirements relative to statewide uniformity. 33.30 (b) A comprehensive plan, including estimated project 33.31 costs, shall be approved by the legislative advisory commission 33.32 and filed with the commissioner of administration. 33.33 (13) According to federal requirements, establish 33.34 procedures to be followed by local welfare boards in creating 33.35 citizen advisory committees, including procedures for selection 33.36 of committee members. 34.1 (14) Allocate federal fiscal disallowances or sanctions 34.2 which are based on quality control error rates for the aid to 34.3 families with dependent children, Minnesota family investment 34.4 program-statewide, medical assistance, or food stamp program in 34.5 the following manner: 34.6 (a) One-half of the total amount of the disallowance shall 34.7 be borne by the county boards responsible for administering the 34.8 programs. For the medical assistance, MFIP-S, and AFDC 34.9 programs, disallowances shall be shared by each county board in 34.10 the same proportion as that county's expenditures for the 34.11 sanctioned program are to the total of all counties' 34.12 expenditures for the AFDC, MFIP-S, and medical assistance 34.13 programs. For the food stamp program, sanctions shall be shared 34.14 by each county board, with 50 percent of the sanction being 34.15 distributed to each county in the same proportion as that 34.16 county's administrative costs for food stamps are to the total 34.17 of all food stamp administrative costs for all counties, and 50 34.18 percent of the sanctions being distributed to each county in the 34.19 same proportion as that county's value of food stamp benefits 34.20 issued are to the total of all benefits issued for all 34.21 counties. Each county shall pay its share of the disallowance 34.22 to the state of Minnesota. When a county fails to pay the 34.23 amount due hereunder, the commissioner may deduct the amount 34.24 from reimbursement otherwise due the county, or the attorney 34.25 general, upon the request of the commissioner, may institute 34.26 civil action to recover the amount due. 34.27 (b) Notwithstanding the provisions of paragraph (a), if the 34.28 disallowance results from knowing noncompliance by one or more 34.29 counties with a specific program instruction, and that knowing 34.30 noncompliance is a matter of official county board record, the 34.31 commissioner may require payment or recover from the county or 34.32 counties, in the manner prescribed in paragraph (a), an amount 34.33 equal to the portion of the total disallowance which resulted 34.34 from the noncompliance, and may distribute the balance of the 34.35 disallowance according to paragraph (a). 34.36 (15) Develop and implement special projects that maximize 35.1 reimbursements and result in the recovery of money to the 35.2 state. For the purpose of recovering state money, the 35.3 commissioner may enter into contracts with third parties. Any 35.4 recoveries that result from projects or contracts entered into 35.5 under this paragraph shall be deposited in the state treasury 35.6 and credited to a special account until the balance in the 35.7 account reaches $1,000,000. When the balance in the account 35.8 exceeds $1,000,000, the excess shall be transferred and credited 35.9 to the general fund. All money in the account is appropriated 35.10 to the commissioner for the purposes of this paragraph. 35.11 (16) Have the authority to make direct payments to 35.12 facilities providing shelter to women and their children 35.13 according to section 256D.05, subdivision 3. Upon the written 35.14 request of a shelter facility that has been denied payments 35.15 under section 256D.05, subdivision 3, the commissioner shall 35.16 review all relevant evidence and make a determination within 30 35.17 days of the request for review regarding issuance of direct 35.18 payments to the shelter facility. Failure to act within 30 days 35.19 shall be considered a determination not to issue direct payments. 35.20 (17) Have the authority to establish and enforce the 35.21 following county reporting requirements: 35.22 (a) The commissioner shall establish fiscal and statistical 35.23 reporting requirements necessary to account for the expenditure 35.24 of funds allocated to counties for human services programs. 35.25 When establishing financial and statistical reporting 35.26 requirements, the commissioner shall evaluate all reports, in 35.27 consultation with the counties, to determine if the reports can 35.28 be simplified or the number of reports can be reduced. 35.29 (b) The county board shall submit monthly or quarterly 35.30 reports to the department as required by the commissioner. 35.31 Monthly reports are due no later than 15 working days after the 35.32 end of the month. Quarterly reports are due no later than 30 35.33 calendar days after the end of the quarter, unless the 35.34 commissioner determines that the deadline must be shortened to 35.35 20 calendar days to avoid jeopardizing compliance with federal 35.36 deadlines or risking a loss of federal funding. Only reports 36.1 that are complete, legible, and in the required format shall be 36.2 accepted by the commissioner. 36.3 (c) If the required reports are not received by the 36.4 deadlines established in clause (b), the commissioner may delay 36.5 payments and withhold funds from the county board until the next 36.6 reporting period. When the report is needed to account for the 36.7 use of federal funds and the late report results in a reduction 36.8 in federal funding, the commissioner shall withhold from the 36.9 county boards with late reports an amount equal to the reduction 36.10 in federal funding until full federal funding is received. 36.11 (d) A county board that submits reports that are late, 36.12 illegible, incomplete, or not in the required format for two out 36.13 of three consecutive reporting periods is considered 36.14 noncompliant. When a county board is found to be noncompliant, 36.15 the commissioner shall notify the county board of the reason the 36.16 county board is considered noncompliant and request that the 36.17 county board develop a corrective action plan stating how the 36.18 county board plans to correct the problem. The corrective 36.19 action plan must be submitted to the commissioner within 45 days 36.20 after the date the county board received notice of noncompliance. 36.21 (e) The final deadline for fiscal reports or amendments to 36.22 fiscal reports is one year after the date the report was 36.23 originally due. If the commissioner does not receive a report 36.24 by the final deadline, the county board forfeits the funding 36.25 associated with the report for that reporting period and the 36.26 county board must repay any funds associated with the report 36.27 received for that reporting period. 36.28 (f) The commissioner may not delay payments, withhold 36.29 funds, or require repayment under paragraph (c) or (e) if the 36.30 county demonstrates that the commissioner failed to provide 36.31 appropriate forms, guidelines, and technical assistance to 36.32 enable the county to comply with the requirements. If the 36.33 county board disagrees with an action taken by the commissioner 36.34 under paragraph (c) or (e), the county board may appeal the 36.35 action according to sections 14.57 to 14.69. 36.36 (g) Counties subject to withholding of funds under 37.1 paragraph (c) or forfeiture or repayment of funds under 37.2 paragraph (e) shall not reduce or withhold benefits or services 37.3 to clients to cover costs incurred due to actions taken by the 37.4 commissioner under paragraph (c) or (e). 37.5 (18) Allocate federal fiscal disallowances or sanctions for 37.6 audit exceptions when federal fiscal disallowances or sanctions 37.7 are based on a statewide random sample for the foster care 37.8 program under title IV-E of the Social Security Act, United 37.9 States Code, title 42, in direct proportion to each county's 37.10 title IV-E foster care maintenance claim for that period. 37.11 (19) Be responsible for ensuring the detection, prevention, 37.12 investigation, and resolution of fraudulent activities or 37.13 behavior by applicants, recipients, and other participants in 37.14 the human services programs administered by the department. 37.15 (20) Require county agencies to identify overpayments, 37.16 establish claims, and utilize all available and cost-beneficial 37.17 methodologies to collect and recover these overpayments in the 37.18 human services programs administered by the department. 37.19 (21) Have the authority to administer a drug rebate program 37.20 for drugs purchased pursuant to the senior citizen drug program 37.21 established under section 256.955 after the beneficiary's 37.22 satisfaction of any deductible established in the program. The 37.23 commissioner shall require a rebate agreement from all 37.24 manufacturers of covered drugs as defined in section 256B.0625, 37.25 subdivision 13. For each drug, the amount of the rebate shall 37.26 be equal to the basic rebate as defined for purposes of the 37.27 federal rebate program in United States Code, title 42, section 37.28 1396r-8(c)(1). This basic rebate shall be applied to 37.29 single-source and multiple-source drugs. The manufacturers must 37.30 provide full payment within 30 days of receipt of the state 37.31 invoice for the rebate within the terms and conditions used for 37.32 the federal rebate program established pursuant to section 1927 37.33 of title XIX of the Social Security Act. The manufacturers must 37.34 provide the commissioner with any information necessary to 37.35 verify the rebate determined per drug. The rebate program shall 37.36 utilize the terms and conditions used for the federal rebate 38.1 program established pursuant to section 1927 of title XIX of the 38.2 Social Security Act. 38.3 (22) Operate the department's communication systems account 38.4 established in Laws 1993, First Special Session chapter 1, 38.5 article 1, section 2, subdivision 2, to manage shared 38.6 communication costs necessary for the operation of the programs 38.7 the commissioner supervises. A communications account may also 38.8 be established for each regional treatment center which operates 38.9 communications systems. Each account must be used to manage 38.10 shared communication costs necessary for the operations of the 38.11 programs the commissioner supervises. The commissioner may 38.12 distribute the costs of operating and maintaining communication 38.13 systems to participants in a manner that reflects actual usage. 38.14 Costs may include acquisition, licensing, insurance, 38.15 maintenance, repair, staff time and other costs as determined by 38.16 the commissioner. Nonprofit organizations and state, county, 38.17 and local government agencies involved in the operation of 38.18 programs the commissioner supervises may participate in the use 38.19 of the department's communications technology and share in the 38.20 cost of operation. The commissioner may accept on behalf of the 38.21 state any gift, bequest, devise or personal property of any 38.22 kind, or money tendered to the state for any lawful purpose 38.23 pertaining to the communication activities of the department. 38.24 Any money received for this purpose must be deposited in the 38.25 department's communication systems accounts. Money collected by 38.26 the commissioner for the use of communication systems must be 38.27 deposited in the state communication systems account, and is 38.28 appropriated to the commissioner for purposes of this section. 38.29 (23) Receive any federal matching money that is made 38.30 available through the medical assistance program for the 38.31 consumer satisfaction survey. Any federal money received for 38.32 the survey is appropriated to the commissioner for this 38.33 purpose. The commissioner may expend the federal money received 38.34 for the consumer satisfaction survey in either year of the 38.35 biennium. 38.36 (24) Incorporate cost reimbursement claims from First Call 39.1 Minnesota into the federal cost reimbursement claiming processes 39.2 of the department according to federal law, rule, and 39.3 regulations. Any reimbursement received is appropriated to the 39.4 commissioner and shall be disbursed to First Call Minnesota 39.5 according to normal department payment schedules. 39.6 Sec. 16. Minnesota Statutes 1998, section 256.01, is 39.7 amended by adding a subdivision to read: 39.8 Subd. 17. [FUND AND ACCOUNT REPORTING REQUIRED.] Annually 39.9 on December 1, the commissioner shall provide detailed fund 39.10 balance statements to the chairs of the legislative committees 39.11 or divisions with jurisdiction over the commissioner's budget 39.12 for: (1) each fund or account used by the commissioner in the 39.13 ongoing operations of the agency; (2) each state-operated 39.14 computer system under section 256.014, including but not limited 39.15 to MAXIS, the current medicaid management information system 39.16 (MMIS), the child support enforcement system (PRISM), the 39.17 electronic benefit transfer system (EBT), and the executive 39.18 information system (EIS); and (3) the social services 39.19 information system (SSIS). 39.20 Sec. 17. Minnesota Statutes 1998, section 256.014, is 39.21 amended by adding a subdivision to read: 39.22 Subd. 4. [ISSUANCE OPERATIONS CENTER.] Payments to the 39.23 commissioner from other governmental units and private 39.24 enterprises for: services performed by the issuance operations 39.25 center; or reports generated by the payment and eligibility 39.26 systems must be deposited in the account created under 39.27 subdivision 2. These payments are appropriated to the 39.28 commissioner for the operation of the issuance center or system, 39.29 according to the provisions of this section. 39.30 Sec. 18. Minnesota Statutes 1998, section 256J.39, 39.31 subdivision 1, is amended to read: 39.32 Subdivision 1. [PAYMENT POLICY.] The following policies 39.33 apply to monthly assistance payments and corrective payments: 39.34 (1) Grant payments may be issued in the form of warrants 39.35 immediately redeemable in cash, electronic benefits transfer, or 39.36 by direct deposit into the recipient's account in a financial 40.1 institution. 40.2 (2) The commissioner shall mail assistance payment checks 40.3 to the address where a caregiver lives unless the county agency 40.4 approves an alternate arrangement. 40.5 (3) The commissioner shall mail monthly assistance payment 40.6 checks within time to allow postal service delivery to occur no 40.7 later than the first day of each month. Monthly assistance 40.8 payment checks must be dated the first day of the month. The 40.9 commissioner shall issue electronic benefits transfer payments 40.10 so that caregivers have access to the payments no later than the 40.11 first of the month. 40.12 (4) The commissioner shall issue replacement checks 40.13 promptly, but no later than seven calendar days after the 40.14 provisions of sections 16A.46; 256.01, subdivision 11; and 40.15 471.415 have been met. 40.16 (5) The commissioner, with the advance approval of the 40.17 commissioner of finance, may issue cash assistance grant 40.18 payments up to three days before the first day of each month, 40.19 including three days before the start of each state fiscal 40.20 year. Of the money appropriated for cash assistance grant 40.21 payments for each fiscal year, up to three percent of the annual 40.22 state appropriation is available to the commissioner in the 40.23 previous fiscal year. If that amount is insufficient for the 40.24 costs incurred, an additional amount of the appropriation as 40.25 needed may be transferred with the advance approval of the 40.26 commissioner of finance. 40.27 (Effective Date: Section 18 (256J.39, subdivision 1) is 40.28 effective the day following final enactment.) 40.29 Sec. 19. [REPEALER.] 40.30 Minnesota Statutes 1998, section 256J.03, is repealed 40.31 effective July 2, 1999. Section 14, sunset of uncodified 40.32 language, does not apply to this section. 40.33 ARTICLE 2 40.34 HEALTH DEPARTMENT 40.35 Section 1. Minnesota Statutes 1998, section 13.99, is 40.36 amended by adding a subdivision to read: 41.1 Subd. 33a. [ABORTION NOTIFICATION DATA; DATA ON 41.2 ENFORCEMENT.] Abortion notification data on individuals 41.3 collected and maintained by the commissioner of health are 41.4 classified under section 144.3431, subdivision 3. Data related 41.5 to actions taken by the commissioner to enforce abortion 41.6 notification data reporting requirements are classified under 41.7 section 144.3431, subdivision 4. 41.8 Sec. 2. Minnesota Statutes 1998, section 15.059, 41.9 subdivision 5a, is amended to read: 41.10 Subd. 5a. [LATER EXPIRATION.] Notwithstanding subdivision 41.11 5, the advisory councils and committees listed in this 41.12 subdivision do not expire June 30, 1997. These groups expire 41.13 June 30, 2001, unless the law creating the group or this 41.14 subdivision specifies an earlier expiration date. 41.15 Investment advisory council, created in section 11A.08; 41.16 Intergovernmental information systems advisory council, 41.17 created in section 16B.42, expires June 30, 1999; 41.18 Feedlot and manure management advisory committee, created 41.19 in section 17.136; 41.20 Aquaculture advisory committee, created in section 17.49; 41.21 Dairy producers board, created in section 17.76; 41.22 Pesticide applicator education and examination review 41.23 board, created in section 18B.305; 41.24 Advisory seed potato certification task force, created in 41.25 section 21.112; 41.26 Food safety advisory committee, created in section 28A.20; 41.27 Minnesota organic advisory task force, created in section 41.28 31.95; 41.29 Public programs risk adjustment work group, created in 41.30 section 62Q.03, expires June 30, 1999; 41.31 Workers' compensation self-insurers' advisory committee, 41.32 created in section 79A.02; 41.33 Youth corps advisory committee, created in section 84.0887; 41.34 Iron range off-highway vehicle advisory committee, created 41.35 in section 85.013; 41.36 Mineral coordinating committee, created in section 93.002; 42.1 Game and fish fund citizen advisory committees, created in 42.2 section 97A.055; 42.3 Wetland heritage advisory committee, created in section 42.4 103G.2242; 42.5 Wastewater treatment technical advisory committee, created 42.6 in section 115.54; 42.7 Solid waste management advisory council, created in section 42.8 115A.12; 42.9 Nuclear waste council, created in section 116C.711; 42.10 Genetically engineered organism advisory committee, created 42.11 in section 116C.93; 42.12 Environment and natural resources trust fund advisory 42.13 committee, created in section 116P.06; 42.14 Child abuse prevention advisory council, created in section 42.15 119A.13; 42.16 Chemical abuse and violence prevention council, created in 42.17 section 119A.27; 42.18 Youth neighborhood services advisory board, created in 42.19 section 119A.29; 42.20 Interagency coordinating council, created in section 42.21 125A.28, expires June 30, 1999; 42.22 Desegregation/integration advisory board, created in 42.23 section 124D.892; 42.24 Nonpublic education council, created in section 123B.445; 42.25 Permanent school fund advisory committee, created in 42.26 section 127A.30; 42.27 Indian scholarship committee, created in section 124D.84, 42.28 subdivision 2; 42.29 American Indian education committees, created in section 42.30 124D.80; 42.31 Summer scholarship advisory committee, created in section 42.32 124D.95; 42.33 Multicultural education advisory committee, created in 42.34 section 124D.894; 42.35 Male responsibility and fathering grants review committee, 42.36 created in section 124D.33; 43.1 Library for the blind and physically handicapped advisory 43.2 committee, created in section 134.31; 43.3 Higher education advisory council, created in section 43.4 136A.031; 43.5 Student advisory council, created in section 136A.031; 43.6 Cancer surveillance advisory committee, created in section 43.7 144.672; 43.8 Maternal and child health task force, created in section 43.9 145.881; 43.10 State community health advisory committee, created in 43.11 section 145A.10; 43.12 Mississippi River Parkway commission, created in section 43.13 161.1419; 43.14 School bus safety advisory committee, created in section 43.15 169.435; 43.16 Advisory council on workers' compensation, created in 43.17 section 175.007; 43.18 Code enforcement advisory council, created in section 43.19 175.008; 43.20 Medical services review board, created in section 176.103; 43.21 Apprenticeship advisory council, created in section 178.02; 43.22 OSHA advisory council, created in section 182.656; 43.23 Health professionals services program advisory committee, 43.24 created in section 214.32; 43.25 Rehabilitation advisory council for the blind, created in 43.26 section 248.10; 43.27 American Indian advisory council, created in section 43.28 254A.035; 43.29 Alcohol and other drug abuse advisory council, created in 43.30 section 254A.04; 43.31 Medical assistance drug formulary committee, created in 43.32 section 256B.0625; 43.33 Home care advisory committee, created in section 256B.071; 43.34 Preadmission screening, alternative care, and home and 43.35 community-based services advisory committee, created in section 43.36 256B.0911; 44.1 Traumatic brain injury advisory committee, created in 44.2 section 256B.093; 44.3 Minnesota commission serving deaf and hard-of-hearing 44.4 people, created in section 256C.28; 44.5 American Indian child welfare advisory council, created in 44.6 section 257.3579; 44.7 Juvenile justice advisory committee, created in section 44.8 268.29; 44.9 Northeast Minnesota economic development fund technical 44.10 advisory committees, created in section 298.2213; 44.11 Iron range higher education committee, created in section 44.12 298.2214; 44.13 Northeast Minnesota economic protection trust fund 44.14 technical advisory committee, created in section 298.297; 44.15 Pipeline safety advisory committee, created in section 44.16 299J.06, expires June 30, 1998; 44.17 Battered women's advisory council, created in section 44.18 611A.34. 44.19 Sec. 3. Minnesota Statutes 1998, section 31.96, is amended 44.20 to read: 44.21 31.96 [FOOD HANDLER CERTIFICATION.] 44.22 The commissioner may require certification of retail food 44.23 handlers in establishments licensed under section 28A.05, 44.24 paragraph (a), for retail food preparation, handling, and 44.25 service practices.A retail food handler licensed under section44.2628A.05, paragraph (a), shall comply with the requirements for44.27the manager certification program under section 157.011,44.28subdivision 2. An interagency agreement with the department of44.29health must be established for the transfer of funds to the44.30commissioner to cover the cost of administering the manager44.31certification program.44.32 Sec. 4. Minnesota Statutes 1998, section 62J.04, 44.33 subdivision 3, is amended to read: 44.34 Subd. 3. [COST CONTAINMENT DUTIES.]After obtaining the44.35advice and recommendations of the Minnesota health care44.36commission,The commissioner shall: 45.1 (1) establish statewide and regional cost containment goals 45.2 for total health care spending under this section and collect 45.3 data as described in sections 62J.38 to 62J.41 to monitor 45.4 statewide achievement of the cost containment goals; 45.5 (2) divide the state into no fewer than four regions, with 45.6 one of those regions being the Minneapolis/St. Paul metropolitan 45.7 statistical area but excluding Chisago, Isanti, Wright, and 45.8 Sherburne counties, for purposes of fostering the development of 45.9 regional health planning and coordination of health care 45.10 delivery among regional health care systems and working to 45.11 achieve the cost containment goals; 45.12 (3)provide technical assistance to regional coordinating45.13boards;45.14(4)monitor the quality of health care throughout the state 45.15 and take action as necessary to ensure an appropriate level of 45.16 quality; 45.17(5)(4) issue recommendations regarding uniform billing 45.18 forms, uniform electronic billing procedures and data 45.19 interchanges, patient identification cards, and other uniform 45.20 claims and administrative procedures for health care providers 45.21 and private and public sector payers. In developing the 45.22 recommendations, the commissioner shall review the work of the 45.23 work group on electronic data interchange (WEDI) and the 45.24 American National Standards Institute (ANSI) at the national 45.25 level, and the work being done at the state and local level. 45.26 The commissioner may adopt rules requiring the use of the 45.27 Uniform Bill 82/92 form, the National Council of Prescription 45.28 Drug Providers (NCPDP) 3.2 electronic version, the Health Care 45.29 Financing Administration 1500 form, or other standardized forms 45.30 or procedures; 45.31(6)(5) undertake health planning responsibilities as 45.32 provided in section 62J.15; 45.33(7)(6) authorize, fund, or promote research and 45.34 experimentation on new technologies and health care procedures; 45.35(8)(7) within the limits of appropriations for these 45.36 purposes, administer or contract for statewide consumer 46.1 education and wellness programs that will improve the health of 46.2 Minnesotans and increase individual responsibility relating to 46.3 personal health and the delivery of health care services, 46.4 undertake prevention programs including initiatives to improve 46.5 birth outcomes, expand childhood immunization efforts, and 46.6 provide start-up grants for worksite wellness programs; 46.7(9)(8) undertake other activities to monitor and oversee 46.8 the delivery of health care services in Minnesota with the goal 46.9 of improving affordability, quality, and accessibility of health 46.10 care for all Minnesotans; and 46.11(10)(9) make the cost containment goal data available to 46.12 the public in a consumer-oriented manner. 46.13 Sec. 5. Minnesota Statutes 1998, section 62J.06, is 46.14 amended to read: 46.15 62J.06 [IMMUNITY FROM LIABILITY.] 46.16 No member ofthe regional coordinating boards established46.17under section 62J.09, orthe health technology advisory 46.18 committee established under section 62J.15, shall be held 46.19 civilly or criminally liable for an act or omission by that 46.20 person if the act or omission was in good faith and within the 46.21 scope of the member's responsibilities under this chapter. 46.22 Sec. 6. Minnesota Statutes 1998, section 62J.07, 46.23 subdivision 1, is amended to read: 46.24 Subdivision 1. [LEGISLATIVE OVERSIGHT.] The legislative 46.25 commission on health care access reviews the activities of the 46.26 commissioner of health,the regional coordinating boards,the 46.27 health technology advisory committee, and all other state 46.28 agencies involved in the implementation and administration of 46.29 this chapter, including efforts to obtain federal approval 46.30 through waivers and other means. 46.31 Sec. 7. Minnesota Statutes 1998, section 62J.07, 46.32 subdivision 3, is amended to read: 46.33 Subd. 3. [REPORTS TO THE COMMISSION.] The commissioner of 46.34 health, the regional coordinating boards,and the health 46.35 technology advisory committee shall report on their activities 46.36 annually and at other times at the request of the legislative 47.1 commission on health care access. The commissioners of health, 47.2 commerce, and human services shall provide periodic reports to 47.3 the legislative commission on the progress of rulemaking that is 47.4 authorized or required under this chapter and shall notify 47.5 members of the commission when a draft of a proposed rule has 47.6 been completed and scheduled for publication in the State 47.7 Register. At the request of a member of the commission, a 47.8 commissioner shall provide a description and a copy of a 47.9 proposed rule. 47.10 Sec. 8. Minnesota Statutes 1998, section 62J.09, 47.11 subdivision 8, is amended to read: 47.12 Subd. 8. [REPEALER.] This section is repealed effective 47.13 July 1,20001999. 47.14 Sec. 9. Minnesota Statutes 1998, section 62J.2930, 47.15 subdivision 3, is amended to read: 47.16 Subd. 3. [CONSUMER INFORMATION.] The information 47.17 clearinghouse or another entity designated by the commissioner 47.18 shall provide consumer information to health plan company 47.19 enrollees to: 47.20 (1) assist enrollees in understanding their rights; 47.21 (2) explain and assist in the use of all available 47.22 complaint systems, including internal complaint systems within 47.23 health carriers, community integrated service networks, and the 47.24 departments of health and commerce; 47.25 (3) provide information on coverage options in each 47.26regional coordinating boardregion of the state; 47.27 (4) provide information on the availability of purchasing 47.28 pools and enrollee subsidies; and 47.29 (5) help consumers use the health care system to obtain 47.30 coverage. 47.31 The information clearinghouse or other entity designated by 47.32 the commissioner for the purposes of this subdivision shall not: 47.33 (1) provide legal services to consumers; 47.34 (2) represent a consumer or enrollee; or 47.35 (3) serve as an advocate for consumers in disputes with 47.36 health plan companies. 48.1 Nothing in this subdivision shall interfere with the ombudsman 48.2 program established under section 256B.031, subdivision 6, or 48.3 other existing ombudsman programs. 48.4 Sec. 10. Minnesota Statutes 1998, section 62J.451, 48.5 subdivision 6a, is amended to read: 48.6 Subd. 6a. [HEALTH PLAN COMPANY PERFORMANCE MEASUREMENT.] 48.7 As part of the performance measurement plan specified in 48.8 subdivision 6, the health data institute shalldevelop a48.9mechanism to assess the performance of health plan companies,48.10and to disseminate this information through reports and other48.11meansannually prepare a report assessing the performance of 48.12 health plan companies in Minnesota. The report shall include 48.13 consumer survey information collected in a manner consistent 48.14 with subdivision 6b and other standard performance measurement 48.15 information, including but not limited to the financial and 48.16 utilization data classified as public data under chapter 13 that 48.17 are reported to the commissioner of health under chapter 62D and 48.18 to the commissioner of commerce under chapters 62A and 62C. The 48.19 report shall be disseminated to consumers, purchasers, 48.20 policymakers, and other interested parties, consistent with the 48.21 data policies specified in section 62J.452. 48.22 Sec. 11. Minnesota Statutes 1998, section 62J.451, 48.23 subdivision 6b, is amended to read: 48.24 Subd. 6b. [CONSUMER SURVEYS.] (a) The health data 48.25 institute shall develop and implement a mechanism for collecting 48.26 comparative data on consumer perceptions of the health care 48.27 system, including consumer satisfaction, through adoption ofa48.28 standard consumersurvey. This surveysurveys for health plan 48.29 companies, health care delivery systems, hospitals, clinics, and 48.30 other provider organizations. These surveys shall include 48.31 enrollees in community integrated service networks, health 48.32 maintenance organizations, preferred provider organizations, 48.33 indemnity insurance plans, public programs, and other health 48.34 plan companies and consumers served by health care delivery 48.35 systems, hospitals, clinics and other provider organizations in 48.36 Minnesota. The health data institute shall determine a 49.1 mechanism for the inclusion of the uninsured. 49.2 (b) The health data institute shall conduct a standard 49.3 consumer survey that measures consumer satisfaction with health 49.4 plan companies in Minnesota. This consumer survey may be 49.5 conducted every two years. A focused survey may be conducted on 49.6 the off years. Health plan companies and group purchasers shall 49.7 provide to the health data institute roster data as defined in 49.8 subdivision 2, including the names, addresses, and telephone 49.9 numbers of enrollees and former enrollees and other data 49.10 necessary for the completion of this survey. This roster data 49.11 provided by the health plan companies and group purchasers is 49.12 classified as provided under section 62J.452. The health data 49.13 institute may analyze and prepare findings from the raw, 49.14 unaggregated data, and the findings from this survey may be 49.15 included in the health plan company performance reports 49.16 specified in subdivision 6a, and in other reports developed and 49.17 disseminated by the health data institute and the commissioner. 49.18 The raw, unaggregated data is classified as provided under 49.19 section 62J.452, and may be made available by the health data 49.20 institute to the extent permitted under section 62J.452. The 49.21 health data institute shall provide raw, unaggregated data to 49.22 the commissioner. The survey may include information on the 49.23 following subjects: 49.24 (1) enrollees' overall satisfaction with their health care 49.25 plan; 49.26 (2) consumers' perception of access to emergency, urgent, 49.27 routine, and preventive care, including locations, hours, 49.28 waiting times, and access to care when needed; 49.29 (3) premiums and costs; 49.30 (4) technical competence of providers; 49.31 (5) communication, courtesy, respect, reassurance, and 49.32 support; 49.33 (6) choice and continuity of providers; 49.34 (7) continuity of care; 49.35 (8) outcomes of care; 49.36 (9) services offered by the plan, including range of 50.1 services, coverage for preventive and routine services, and 50.2 coverage for illness and hospitalization; 50.3 (10) availability of information; and 50.4 (11) paperwork. 50.5(b) The health data institute shall appoint a consumer50.6advisory group which shall consist of 13 individuals,50.7representing enrollees from public and private health plan50.8companies and programs and two uninsured consumers, to advise50.9the health data institute on issues of concern to consumers.50.10The advisory group must have at least one member from each50.11regional coordinating board region of the state. The advisory50.12group expires June 30, 1996.50.13 Sec. 12. Minnesota Statutes 1998, section 62J.451, 50.14 subdivision 6c, is amended to read: 50.15 Subd. 6c. [PROVIDER ORGANIZATION PERFORMANCE MEASUREMENT.] 50.16 (a) As part of the performance measurement plan specified in 50.17 subdivision 6, the health data institute shalldevelop a50.18mechanism to assess the performance of hospitals and other50.19provider organizations, and to disseminate this50.20informationannually prepare a report assessing the performance 50.21 of health care delivery systems, hospitals, clinics, and other 50.22 provider organizations in Minnesota. This report shall include 50.23 consumer survey information collected in a manner consistent 50.24 with subdivision 6b. This report shall be disseminated to 50.25 consumers, purchasers, policymakers, and other interested 50.26 parties, consistent with the data policies specified in section 50.27 62J.452. Data to be collected may also include structural 50.28 characteristics including staff-mix and nurse-patient ratios. 50.29 In selecting additional data for collection, the health data 50.30 institute may consider: 50.31 (1) feasibility and statistical validity of the indicator; 50.32 (2) purchaser and public demand for the indicator; 50.33 (3) estimated expense of collecting and reporting the 50.34 indicator; and 50.35 (4) usefulness of the indicator for internal improvement 50.36 purposes. 51.1 (b) The health data institutemayshall conduct consumer 51.2 surveys that focus on health care provider organizations. These 51.3 surveys shall include consumers served by health care delivery 51.4 systems, hospitals, clinics, and other provider organizations. 51.5 Health care provider organizationsmayshall provide roster 51.6 data, as defined in subdivision 2, including names, addresses, 51.7 and telephone numbers of their patients, to the health data 51.8 institute for purposes of conducting the surveys. Roster data 51.9 provided by health care provider organizations under this 51.10 paragraph are private data on individuals as defined in section 51.11 13.02, subdivision 12. Providing data under this paragraph does 51.12 not constitute a release of health records for purposes of 51.13 section 144.335, subdivision 3a. 51.14 Sec. 13. [62J.535] [UNIFORM BILLING REQUIREMENTS.] 51.15 Subdivision 1. [DEVELOPMENT OF UNIFORM BILLING 51.16 TRANSACTIONS.] The commissioners of commerce and health shall 51.17 adopt uniform billing standards that comply with Public Law 51.18 Number 104-91 enacted by Congress on August 21, 1996. The 51.19 uniform billing standards shall apply to all paper and 51.20 electronic claim transactions and shall apply to all Minnesota 51.21 payers, including government programs. 51.22 Subd. 2. [COMPLIANCE.] Concurrent with the effective dates 51.23 established under Public Law Number 104-91 for uniform 51.24 electronic billing standards, all health care providers must 51.25 conform to the uniform billing standards developed by the 51.26 commissioners of commerce and health. 51.27 Sec. 14. Minnesota Statutes 1998, section 62J.69, is 51.28 amended by adding a subdivision to read: 51.29 Subd. 2a. [MEDICAL RESEARCH.] Notwithstanding subdivision 51.30 2, paragraphs (c) and (d) and subdivision 4, money may be 51.31 distributed under this section as grants to support medical 51.32 research, including medical research activities that are 51.33 conducted in noneducational settings by Minnesota-based 51.34 nonprofit organizations. 51.35 Sec. 15. Minnesota Statutes 1998, section 62J.69, is 51.36 amended by adding a subdivision to read: 52.1 Subd. 6. [FEDERAL FINANCIAL PARTICIPATION.] The 52.2 commissioner of human services shall seek to maximize federal 52.3 financial participation in payments for medical education and 52.4 research costs. If the commissioner of human services 52.5 determines that federal financial participation is available for 52.6 the medical education and research trust fund, the commissioner 52.7 of health shall transfer to the commissioner of human services 52.8 the amount of state funds necessary to maximize the federal 52.9 funds available. The amount transferred to the commissioner of 52.10 human services, plus the amount of federal financial 52.11 participation, shall be distributed to medical assistance 52.12 providers according to the distribution methodology of the 52.13 medical education and research trust fund established under this 52.14 section. 52.15 Sec. 16. Minnesota Statutes 1998, section 62J.77, is 52.16 amended to read: 52.17 62J.77 [DEFINITIONS.] 52.18 Subdivision 1. [APPLICABILITY.] For purposes ofsections52.1962J.77 tosection 62J.80, the terms defined in this section have 52.20 the meanings given them. 52.21 Subd. 2. [ENROLLEE.] "Enrollee" means a natural person 52.22 covered by a health plan company, health insurance, or health 52.23 coverage plan and includes an insured, policyholder, subscriber, 52.24 contract holder, member, covered person, or certificate holder. 52.25 Subd. 3. [PATIENT.] "Patient" means a former, current, or 52.26 prospective patient of a health care provider. 52.27Subd. 4. [COMMISSIONER.] "Commissioner" means the52.28commissioner of health.52.29 Sec. 17. Minnesota Statutes 1998, section 62Q.03, 52.30 subdivision 5a, is amended to read: 52.31 Subd. 5a. [PUBLIC PROGRAMS.] (a) A separate risk 52.32 adjustment system must be developed for state-run public 52.33 programs, including medical assistance, general assistance 52.34 medical care, and MinnesotaCare. The system must be developed 52.35 in accordance with the general risk adjustment methodologies 52.36 described in this section, must include factors in addition to 53.1 age and sex adjustment, and may include additional demographic 53.2 factors, different targeted conditions, and/or different payment 53.3 amounts for conditions. The risk adjustment system for public 53.4 programs must attempt to reflect the special needs related to 53.5 poverty, cultural, or language barriers and other needs of the 53.6 public program population. 53.7 (b) The commissioners of health and human services shall 53.8 jointly convene a public programs risk adjustment work group 53.9 responsible for advising the commissioners in the design of the 53.10 public programs risk adjustment system. The public programs 53.11 risk adjustment work group is governed by section 15.059 for 53.12 purposes of membership terms, expiration, and removal of members 53.13and shall terminate on June 30, 1999. The work group shall meet 53.14 at the discretion of the commissioners of health and human 53.15 services. The commissioner of health shall work with the risk 53.16 adjustment association to ensure coordination between the risk 53.17 adjustment systems for the public and private sectors. The 53.18 commissioner of human services shall seek any needed federal 53.19 approvals necessary for the inclusion of the medical assistance 53.20 program in the public programs risk adjustment system. 53.21 (c) The public programs risk adjustment work group must be 53.22 representative of the persons served by publicly paid health 53.23 programs and providers and health plans that meet their needs. 53.24 To the greatest extent possible, the appointing authorities 53.25 shall attempt to select representatives that have historically 53.26 served a significant number of persons in publicly paid health 53.27 programs or the uninsured. Membership of the work group shall 53.28 be as follows: 53.29 (1) one provider member appointed by the Minnesota Medical 53.30 Association; 53.31 (2) two provider members appointed by the Minnesota 53.32 Hospital Association, at least one of whom must represent a 53.33 major disproportionate share hospital; 53.34 (3) five members appointed by the Minnesota Council of 53.35 HMOs, one of whom must represent an HMO with fewer than 50,000 53.36 enrollees located outside the metropolitan area and one of whom 54.1 must represent an HMO with at least 50 percent of total 54.2 membership enrolled through a public program; 54.3 (4) two representatives of counties appointed by the 54.4 Association of Minnesota Counties; 54.5 (5) three representatives of organizations representing the 54.6 interests of families, children, childless adults, and elderly 54.7 persons served by the various publicly paid health programs 54.8 appointed by the governor; 54.9 (6) two representatives of persons with mental health, 54.10 developmental or physical disabilities, chemical dependency, or 54.11 chronic illness appointed by the governor; and 54.12 (7) three public members appointed by the governor, at 54.13 least one of whom must represent a community health board. The 54.14 risk adjustment association may appoint a representative, if a 54.15 representative is not otherwise appointed by an appointing 54.16 authority. 54.17 (d) The commissioners of health and human services, with 54.18 the advice of the public programs risk adjustment work group, 54.19 shall develop a work plan and time frame and shall coordinate 54.20 their efforts with the private sector risk adjustment 54.21 association's activities and other state initiatives related to 54.22 public program managed care reimbursement. 54.23 (e) Before including risk adjustment in a contract for the 54.24 prepaid medical assistance program, the prepaid general 54.25 assistance medical care program, or the MinnesotaCare program, 54.26 the commissioner of human services shall provide to the 54.27 contractor an analysis of the expected impact on the contractor 54.28 of the implementation of risk adjustment. This paragraph shall 54.29 not apply if the contractor has not supplied information to the 54.30 commissioner related to the risk adjustment analysis. 54.31 (f) The commissioner of human services shall report to the 54.32 public program risk adjustment work group on the methodology the 54.33 department will use for risk adjustment prior to implementation 54.34 of the risk adjustment payment methodology. 54.35 Sec. 18. Minnesota Statutes 1998, section 62Q.075, is 54.36 amended to read: 55.1 62Q.075 [LOCAL PUBLIC ACCOUNTABILITY AND COLLABORATION 55.2 PLAN.] 55.3 Subdivision 1. [DEFINITION.] For purposes of this section, 55.4 "managed care organization" means a health maintenance 55.5 organization or community integrated service network. 55.6 Subd. 2. [REQUIREMENT.] Beginning October 31, 1997, all 55.7 managed care organizations shall file biennially with the action 55.8 plans required under section 62Q.07 a plan describing the 55.9 actions the managed care organization has taken and those it 55.10 intends to take to contribute to achieving public health goals 55.11 for each service area in which an enrollee of the managed care 55.12 organization resides. This plan must be jointly developed in 55.13 collaboration with the local public health units,appropriate55.14regional coordinating boards,and other community organizations 55.15 providing health services within the same service area as the 55.16 managed care organization. Local government units with 55.17 responsibilities and authority defined under chapters 145A and 55.18 256E may designate individuals to participate in the 55.19 collaborative planning with the managed care organization to 55.20 provide expertise and represent community needs and goals as 55.21 identified under chapters 145A and 256E. 55.22 Subd. 3. [CONTENTS.] The plan must address the following: 55.23 (a) specific measurement strategies and a description of 55.24 any activities which contribute to public health goals and needs 55.25 of high risk and special needs populations as defined and 55.26 developed under chapters 145A and 256E; 55.27 (b) description of the process by which the managed care 55.28 organization will coordinate its activities with the community 55.29 health boards,regional coordinating boards,and other relevant 55.30 community organizations servicing the same area; 55.31 (c) documentation indicating that local public health units 55.32 and local government unit designees were involved in the 55.33 development of the plan; 55.34 (d) documentation of compliance with the plan filed the 55.35 previous year, including data on the previously identified 55.36 progress measures. 56.1 Subd. 4. [REVIEW.] Upon receipt of the plan, the 56.2 appropriate commissioner shall provide a copy to theregional56.3coordinating boards,local community health boards, and other 56.4 relevant community organizations within the managed care 56.5 organization's service area. After reviewing the plan, these 56.6 community groups may submit written comments on the plan to 56.7 either the commissioner of health or commerce, as applicable, 56.8 and may advise the commissioner of the managed care 56.9 organization's effectiveness in assisting to achieve regional 56.10 public health goals. The plan may be reviewed by the county 56.11 boards, or city councils acting as a local board of health in 56.12 accordance with chapter 145A, within the managed care 56.13 organization's service area to determine whether the plan is 56.14 consistent with the goals and objectives of the plans required 56.15 under chapters 145A and 256E and whether the plan meets the 56.16 needs of the community. The county board, or applicable city 56.17 council, may also review and make recommendations on the 56.18 availability and accessibility of services provided by the 56.19 managed care organization. The county board, or applicable city 56.20 council, may submit written comments to the appropriate 56.21 commissioner, and may advise the commissioner of the managed 56.22 care organization's effectiveness in assisting to meet the needs 56.23 and goals as defined under the responsibilities of chapters 145A 56.24 and 256E. The commissioner of health shall develop 56.25 recommendations to utilize the written comments submitted as 56.26 part of the licensure process to ensure local public 56.27 accountability. These recommendations shall be reported to the 56.28 legislative commission on health care access by January 15, 56.29 1996. Copies of these written comments must be provided to the 56.30 managed care organization. The plan and any comments submitted 56.31 must be filed with the information clearinghouse to be 56.32 distributed to the public. 56.33 Sec. 19. Minnesota Statutes 1998, section 62Q.19, 56.34 subdivision 1, is amended to read: 56.35 Subdivision 1. [DESIGNATION.] (a) The commissioner shall 56.36 designate essential community providers. The criteria for 57.1 essential community provider designation shall be the following: 57.2 (1) a demonstrated ability to integrate applicable 57.3 supportive and stabilizing services with medical care for 57.4 uninsured persons and high-risk and special needs populations as 57.5 defined in section 62Q.07, subdivision 2, paragraph (e), 57.6 underserved, and other special needs populations; and 57.7 (2) a commitment to serve low-income and underserved 57.8 populations by meeting the following requirements: 57.9 (i) has nonprofit status in accordance with chapter 317A; 57.10 (ii) has tax exempt status in accordance with the Internal 57.11 Revenue Service Code, section 501(c)(3); 57.12 (iii) charges for services on a sliding fee schedule based 57.13 on current poverty income guidelines; and 57.14 (iv) does not restrict access or services because of a 57.15 client's financial limitation; 57.16 (3) status as a local government unit as defined in section 57.17 62D.02, subdivision 11, a hospital district created or 57.18 reorganized under sections 447.31 to 447.37, an Indian tribal 57.19 government, an Indian health service unit, or a community health 57.20 board as defined in chapter 145A; 57.21 (4) a former state hospital that specializes in the 57.22 treatment of cerebral palsy, spina bifida, epilepsy, closed head 57.23 injuries, specialized orthopedic problems, and other disabling 57.24 conditions; or 57.25 (5) a rural hospital that has qualified for a sole 57.26 community hospital financial assistance grant in the past three 57.27 years under section 144.1484, subdivision 1. For these rural 57.28 hospitals, the essential community provider designation applies 57.29 to all health services provided, including both inpatient and 57.30 outpatient services. 57.31 (b) The commissioner shall not designate a provider, or 57.32 maintain an existing designation for a provider, as an essential 57.33 community provider if the provider is an organization or 57.34 affiliate of an organization which provides or promotes 57.35 abortions or directly refers for abortions, provided that 57.36 nondirective counseling relating to a pregnancy does not 58.1 disqualify a provider from being designated or maintaining a 58.2 designation as an essential community provider. 58.3 (c) Prior to designation, the commissioner shall publish 58.4 the names of all applicants in the State Register. The public 58.5 shall have 30 days from the date of publication to submit 58.6 written comments to the commissioner on the application. No 58.7 designation shall be made by the commissioner until the 30-day 58.8 period has expired. 58.9 (d) The commissioner may designate an eligible provider as 58.10 an essential community provider for all the services offered by 58.11 that provider or for specific services designated by the 58.12 commissioner. 58.13 (e) For the purpose of this subdivision, supportive and 58.14 stabilizing services include at a minimum, transportation, child 58.15 care, cultural, and linguistic services where appropriate. 58.16 Sec. 20. Minnesota Statutes 1998, section 62Q.19, 58.17 subdivision 2, is amended to read: 58.18 Subd. 2. [APPLICATION.] (a) Any provider may apply to the 58.19 commissioner for designation as an essential community provider 58.20 by submitting an application form developed by the 58.21 commissioner.Applications must be accepted within two years58.22after the effective date of the rules adopted by the58.23commissioner to implement this section.58.24 (b) Each application submitted must be accompanied by an 58.25 application feein an amount determined by the commissionerof 58.26 $120. The fee shall be no more than what is needed to cover the 58.27 administrative costs of processing the application. 58.28 (c) The name, address, contact person, and the date by 58.29 which the commissioner's decision is expected to be made shall 58.30 be classified as public data under section 13.41. All other 58.31 information contained in the application form shall be 58.32 classified as private data under section 13.41 until the 58.33 application has been approved, approved as modified, or denied 58.34 by the commissioner. Once the decision has been made, all 58.35 information shall be classified as public data unless the 58.36 applicant designates and the commissioner determines that the 59.1 information contains trade secret information. 59.2 (Effective Date: Section 20 (62Q.19, subdivision 2) is 59.3 effective the day following final enactment.) 59.4 Sec. 21. Minnesota Statutes 1998, section 62Q.19, 59.5 subdivision 6, is amended to read: 59.6 Subd. 6. [TERMINATION OR RENEWAL OF DESIGNATION; 59.7 COMMISSIONER REVIEW.] The designation as an essential community 59.8 providerterminatesshall be valid for a five-year period from 59.9 the date of designation. Five years afteritthe designation of 59.10 essential community provider is granted, or when universal59.11coverage as defined under section 62Q.165 is achieved, whichever59.12is laterto a provider, the commissioner shall review the need 59.13 for and appropriateness of continuing the designation for that 59.14 provider. The commissioner may require a provider whose 59.15 designation is to be reviewed to submit an application to the 59.16 commissioner for renewal of the designation, and may require an 59.17 application fee of $120 to be submitted with the application to 59.18 cover the administrative costs of processing the application. 59.19 Based on that review, the commissioner may renew a provider's 59.20 essential community provider designation for an additional 59.21 five-year period or terminate the designation. Once the 59.22 designation terminates, the former essential community provider 59.23 has no rights or privileges beyond those of any other health 59.24 care provider.The commissioner shall make a recommendation to59.25the legislature on whether an essential community provider59.26designation should be longer than five years.59.27 Sec. 22. Minnesota Statutes 1998, section 62R.06, 59.28 subdivision 1, is amended to read: 59.29 Subdivision 1. [PROVIDER CONTRACTS.] A health provider 59.30 cooperative and its licensed members may execute marketing and 59.31 service contracts requiring the provider members to provide some 59.32 or all of their health care services through the provider 59.33 cooperative to the enrollees, members, subscribers, or insureds, 59.34 of a health care network cooperative, community integrated 59.35 service network, nonprofit health service plan, health 59.36 maintenance organization, accident and health insurance company, 60.1 or any other purchaser, including the state of Minnesota and its 60.2 agencies, instruments, or units of local government. Each 60.3 purchasing entity is authorized to execute contracts for the 60.4 purchase of health care services from a health provider 60.5 cooperative in accordance with this section.AnyA contract 60.6 between a provider cooperative and a purchasermustmay provide 60.7 for payment by the purchaser to the health provider cooperative 60.8 on asubstantiallycapitated or similar risk-sharing basis or by 60.9 other financial arrangements authorized under state law. Each 60.10 contract between a provider cooperative and a purchaser shall be 60.11 filed by the provider network cooperative with the commissioner 60.12 of health and is subject to the provisions of section 62D.19. 60.13 Sec. 23. [144.1201] [DEFINITIONS.] 60.14 Subdivision 1. [APPLICABILITY.] For purposes of sections 60.15 144.1201 to 144.1204, the terms defined in this section have the 60.16 meanings given to them. 60.17 Subd. 2. [BY-PRODUCT NUCLEAR MATERIAL.] "By-product 60.18 nuclear material" means a radioactive material, other than 60.19 special nuclear material, yielded in or made radioactive by 60.20 exposure to radiation created incident to the process of 60.21 producing or utilizing special nuclear material. 60.22 Subd. 3. [RADIATION.] "Radiation" means ionizing radiation 60.23 and includes alpha rays; beta rays; gamma rays; x-rays; high 60.24 energy neutrons, protons, or electrons; and other atomic 60.25 particles. 60.26 Subd. 4. [RADIOACTIVE MATERIAL.] "Radioactive material" 60.27 means a matter that emits radiation. Radioactive material 60.28 includes special nuclear material, source nuclear material, and 60.29 by-product nuclear material. 60.30 Subd. 5. [SOURCE NUCLEAR MATERIAL.] "Source nuclear 60.31 material" means uranium or thorium, or a combination thereof, in 60.32 any physical or chemical form; or ores that contain by weight 60.33 1/20 of one percent (0.05 percent) or more of uranium, thorium, 60.34 or a combination thereof. Source nuclear material does not 60.35 include special nuclear material. 60.36 Subd. 6. [SPECIAL NUCLEAR MATERIAL.] "Special nuclear 61.1 material" means: 61.2 (1) plutonium, uranium enriched in the isotope 233 or in 61.3 the isotope 235, and any other material that the Nuclear 61.4 Regulatory Commission determines to be special nuclear material 61.5 according to United States Code, title 42, section 2071, except 61.6 that source nuclear material is not included; and 61.7 (2) a material artificially enriched by any of the 61.8 materials listed in clause (1), except that source nuclear 61.9 material is not included. 61.10 Sec. 24. [144.1202] [UNITED STATES NUCLEAR REGULATORY 61.11 COMMISSION AGREEMENT.] 61.12 Subdivision 1. [AGREEMENT AUTHORIZED.] In order to have a 61.13 comprehensive program to protect the public from radiation 61.14 hazards, the governor, on behalf of the state, is authorized to 61.15 enter into agreements with the United States Nuclear Regulatory 61.16 Commission under the Atomic Energy Act of 1954, section 274b, as 61.17 amended. The agreement shall provide for the discontinuance of 61.18 portions of the Nuclear Regulatory Commission's licensing and 61.19 related regulatory authority over by-product, source, and 61.20 special nuclear materials, and the assumption of regulatory 61.21 authority over these materials by the state. 61.22 Subd. 2. [HEALTH DEPARTMENT DESIGNATED LEAD.] The 61.23 department of health is designated as the lead agency to pursue 61.24 an agreement on behalf of the governor and for any assumption of 61.25 specified licensing and regulatory authority from the Nuclear 61.26 Regulatory Commission under an agreement with the commission. 61.27 The commissioner of health shall establish an advisory group to 61.28 assist in preparing the state to meet the requirements for 61.29 reaching an agreement. The commissioner may adopt rules to 61.30 allow the state to assume regulatory authority under an 61.31 agreement under this section, including the licensing and 61.32 regulation of radioactive materials. Any regulatory authority 61.33 assumed by the state includes the ability to set and collect 61.34 fees. 61.35 Subd. 3. [TRANSITION.] A person who, on the effective date 61.36 of an agreement under this section, possesses a Nuclear 62.1 Regulatory Commission license that is subject to the agreement 62.2 is deemed to possess a similar license issued by the department 62.3 of health. A department of health license obtained under this 62.4 subdivision expires on the expiration date specified in the 62.5 federal license. 62.6 Subd. 4. [AGREEMENT; CONDITIONS OF IMPLEMENTATION.] (a) An 62.7 agreement entered into before August 2, 2002, must remain in 62.8 effect until terminated under the Atomic Energy Act of 1954, 62.9 United States Code, title 42, section 2021, paragraph (j). The 62.10 governor may not enter into an initial agreement with the 62.11 Nuclear Regulatory Commission after August 1, 2002. If an 62.12 agreement is not entered into by August 1, 2002, any rules 62.13 adopted under this section are repealed effective August 1, 2002. 62.14 (b) An agreement authorized under subdivision 1 must be 62.15 approved by law before it may be implemented. 62.16 Sec. 25. [144.1203] [TRAINING; RULEMAKING.] 62.17 The commissioner shall adopt rules to ensure that 62.18 individuals handling or utilizing radioactive materials under 62.19 the terms of a license issued by the commissioner under section 62.20 144.1202 have proper training and qualifications to do so. The 62.21 rules adopted must be at least as stringent as federal 62.22 regulations on proper training and qualifications adopted by the 62.23 Nuclear Regulatory Commission. Rules adopted under this section 62.24 may incorporate federal regulations by reference. 62.25 Sec. 26. [144.1204] [SURETY REQUIREMENTS.] 62.26 Subdivision 1. [FINANCIAL ASSURANCE REQUIRED.] The 62.27 commissioner may require an applicant for a license under 62.28 section 144.1202, or a person who was formerly licensed by the 62.29 Nuclear Regulatory Commission and is now subject to sections 62.30 144.1201 to 144.1204, to post financial assurances to ensure the 62.31 completion of all requirements established by the commissioner 62.32 for the decontamination, closure, decommissioning, and 62.33 reclamation of sites, structures, and equipment used in 62.34 conjunction with activities related to licensure. The financial 62.35 assurances posted must be sufficient to restore the site to 62.36 unrestricted future use and must be sufficient to provide for 63.1 surveillance and care when radioactive materials remain at the 63.2 site after the licensed activities cease. The commissioner may 63.3 establish financial assurance criteria by rule. In establishing 63.4 such criteria, the commissioner may consider: 63.5 (1) the chemical and physical form of the licensed 63.6 radioactive material; 63.7 (2) the quantity of radioactive material authorized; 63.8 (3) the particular radioisotopes authorized and their 63.9 subsequent radiotoxicity; 63.10 (4) the method in which the radioactive material is held, 63.11 used, stored, processed, transferred, or disposed of; and 63.12 (5) the potential costs of decontamination, treatment, or 63.13 disposal of a licensee's equipment and facilities. 63.14 Subd. 2. [ACCEPTABLE FINANCIAL ASSURANCES.] The 63.15 commissioner may, by rule, establish types of financial 63.16 assurances that meet the requirements of this section. Such 63.17 financial assurances may include bank letters of credit, 63.18 deposits of cash, or deposits of government securities. 63.19 Subd. 3. [TRUST AGREEMENTS.] Financial assurances must be 63.20 established together with trust agreements. Both the financial 63.21 assurances and the trust agreements must be in a form and 63.22 substance that meet requirements established by the commissioner. 63.23 Subd. 4. [EXEMPTIONS.] The commissioner is authorized to 63.24 exempt from the requirements of this section, by rule, any 63.25 category of licensee upon a determination by the commissioner 63.26 that an exemption does not result in a significant risk to the 63.27 public health or safety or to the environment and does not pose 63.28 a financial risk to the state. 63.29 Subd. 5. [OTHER REMEDIES UNAFFECTED.] Nothing in this 63.30 section relieves a licensee of a civil liability incurred, nor 63.31 may this section be construed to relieve the licensee of 63.32 obligations to prevent or mitigate the consequences of improper 63.33 handling or abandonment of radioactive materials. 63.34 Sec. 27. Minnesota Statutes 1998, section 144.121, is 63.35 amended by adding a subdivision to read: 63.36 Subd. 8. [EXEMPTION FROM EXAMINATION REQUIREMENTS; 64.1 OPERATORS OF CERTAIN BONE DENSITOMETERS.] (a) This subdivision 64.2 applies to a bone densitometer that is used on humans to 64.3 estimate bone mineral content and bone mineral density in a 64.4 region of a finger on a person's nondominant hand, gives an 64.5 x-ray dose equivalent of less than 0.001 microsieverts per scan, 64.6 and has an x-ray leakage exposure rate of less than two 64.7 milliroentgens per hour at a distance of one meter, provided 64.8 that the bone densitometer is operating in accordance with 64.9 manufacturer specifications. 64.10 (b) An individual who operates a bone densitometer that 64.11 satisfies the definition in paragraph (a) and the facility in 64.12 which an individual operates such a bone densitometer are exempt 64.13 from the requirements of subdivisions 5 and 6. 64.14 (Effective Date: Section 27 (144.121, subdivision 8) is 64.15 effective the day following final enactment.) 64.16 Sec. 28. Minnesota Statutes 1998, section 144.147, is 64.17 amended to read: 64.18 144.147 [RURAL HOSPITALPLANNING AND TRANSITIONIMPROVEMENT 64.19 GRANT PROGRAM.] 64.20 Subdivision 1. [DEFINITION.] "Eligible rural hospital" 64.21 means any nonfederal, general acute care hospital that: 64.22 (1) is either located in a rural area, as defined in the 64.23 federal Medicare regulations, Code of Federal Regulations, title 64.24 42, section 405.1041, or located in a community with a 64.25 population of less than 5,000, according to United States Census 64.26 Bureau statistics, outside the seven-county metropolitan area; 64.27 (2) has 50 or fewer beds; and 64.28 (3) is not for profit. 64.29 Subd. 2. [GRANTS AUTHORIZED.] The commissioner shall 64.30 establish a program of grants to assist eligible rural 64.31 hospitals. The commissioner shall award grants to hospitals and 64.32 communities for the purposes set forth in paragraphs (a)and (b)64.33 to (c). 64.34 (a) Grants may be used by hospitals and their communities 64.35 to develop strategic plans for preserving or enhancing access to 64.36 health services.At a minimum, a strategic plan must consist of:65.1(1) a needs assessment to determine what health services65.2are needed and desired by the community. The assessment must65.3include interviews with or surveys of area health professionals,65.4local community leaders, and public hearings;65.5(2) an assessment of the feasibility of providing needed65.6health services that identifies priorities and timeliness for65.7potential changes; and65.8(3) an implementation plan.65.9The strategic plan must be developed by a committee that65.10includes representatives from the hospital, local public health65.11agencies, other health providers, and consumers from the65.12community.65.13 (b)TheGrants mayalsobe used byeligible ruralhospitals 65.14that have developed strategic plans to implement transition65.15projects to modify the type and extent of services provided, in65.16order to reflect the needs of that plan. Grants may be used by65.17hospitals under this paragraph to develop hospital-based65.18physician practices that integrate hospital and existing medical65.19practice facilities that agree to transfer their practices,65.20equipment, staffing, and administration to the hospital. The65.21grants may also be used by the hospital to establish a health65.22provider cooperative, a telemedicine system, or a rural health65.23care system. Not more than one-third of any grant shall be used65.24to offset losses incurred by physicians agreeing to transfer65.25their practices to hospitals.for implementation projects that 65.26 reflect the needs identified in a strategic plan or similar plan. 65.27 Implementation projects may include development or enhancement 65.28 of telemedicine services, diversification of health services, 65.29 collaborative efforts to integrate health services, or critical 65.30 access hospital conversion activities. 65.31 (c) Grants may be used by hospitals for planning and 65.32 implementation of capital improvement projects. A capital 65.33 improvement project is designed to update, remodel, or replace 65.34 aging hospital facilities and equipment necessary to maintain 65.35 the operations of a hospital. 65.36 Subd. 3. [CONSIDERATION OF GRANTS.] In determining which 66.1 hospitals will receive grants under this section, the 66.2 commissioner shall take into account: 66.3 (1) improving community access to hospital or health 66.4 services; 66.5 (2) changes in service populations; 66.6 (3)demand foravailability and upgrading ambulatory and 66.7 emergency services; 66.8 (4) the extent that the health needs of the community are 66.9 not currently being met by other providers in the service area; 66.10 (5) the need to recruit and retain health professionals; 66.11 (6) the extent of community support; 66.12 (7) the integration of health care services and the 66.13 coordination with local community organizations, such as 66.14 community development and public health agencies; and 66.15 (8) the financial condition of the hospital. 66.16 Subd. 4. [ALLOCATION OF GRANTS.] (a) Eligible hospitals 66.17 must apply to the commissioner no later thanSeptemberOctober 1 66.18 of each fiscal year for grants awarded for that fiscal year. A 66.19 grant may be awarded upon signing of a grant contract. 66.20 (b) The commissioner must make a final decision on the 66.21 funding of each application within 60 days of the deadline for 66.22 receiving applications. 66.23 (c) Each relevant community health board has 30 days in 66.24 which to review and comment to the commissioner on grant 66.25 applications from hospitals in their community health service 66.26 area. 66.27 (d) In determining which hospitals will receive grants 66.28 under this section, the commissioner shall consider the 66.29 following factors: 66.30 (1) Description of the problem, description of the project, 66.31 and the likelihood of successful outcome of the project. The 66.32 applicant must explain clearly the nature of the health services 66.33 problems in their service area, how the grant funds will be 66.34 used, what will be accomplished, and the results expected. The 66.35 applicant should describe achievable objectives, a timetable, 66.36 and roles and capabilities of responsible individuals and 67.1 organizations. 67.2 (2) The extent of community support for the hospital and 67.3 this proposed project. The applicant should demonstrate support 67.4 for the hospital and for the proposed project from other local 67.5 health service providers and from local community and government 67.6 leaders. Evidence of such support may include past commitments 67.7 of financial support from local individuals, organizations, or 67.8 government entities; and commitment of financial support, 67.9 in-kind services or cash, for this project. 67.10 (3) The comments, if any, resulting from a review of the 67.11 application by the community health board in whose community 67.12 health service area the hospital is located. 67.13 (e) In evaluating applications, the commissioner shall 67.14 score each application on a 100 point scale, assigning the 67.15 maximum of 70 points for an applicant's understanding of the 67.16 problem, description of the project, and likelihood of 67.17 successful outcome of the project; and a maximum of 30 points 67.18 for the extent of community support for the hospital and this 67.19 project. The commissioner may also take into account other 67.20 relevant factors. 67.21 (f)A grant to a hospital, including hospitals that submit67.22applications as consortia, may not exceed $50,000 a year and may67.23not exceed a term of two years. Prior to the receipt of any67.24grant, the hospital must certify to the commissioner that at67.25least one-half of the amount, which may include in-kind67.26services, is available for the same purposes from nonstate67.27sources. A hospital receiving a grant under this section may67.28use the grant for any expenses incurred in the development of67.29strategic plans or the implementation of transition projects67.30with respect to which the grant is made. Project grants may not67.31be used to retire debt incurred with respect to any capital67.32expenditure made prior to the date on which the project is67.33initiated.In determining the grant amount a hospital will 67.34 receive under this section, the commissioner shall consider the 67.35 following factors: 67.36 (1) grants to hospitals for planning and implementation 68.1 under subdivision 2, paragraphs (a) and (b), may not exceed 68.2 $100,000 a year and may not exceed a term of two years. Prior 68.3 to the receipt of any grant, the hospital must certify to the 68.4 commissioner that at least one-half of the amount of the total 68.5 cost of the planning or implementation project, which may 68.6 include in-kind services, is available for the same purposes 68.7 from nonstate sources; and 68.8 (2) grants to hospitals for planning and implementation 68.9 projects under subdivision 2, paragraph (c), may not exceed 68.10 $300,000 a year and may not exceed a term of two years. Prior 68.11 to the receipt of any grant, the hospital must certify to the 68.12 commissioner that at least one-quarter of the amount of the 68.13 total cost of the planning and implementation project, which may 68.14 include in-kind services, is available for the same purposes 68.15 from nonstate sources. A hospital receiving a grant under this 68.16 section may use the grant for any expenses incurred in the 68.17 development of strategic plans or the implementation of 68.18 transition projects with respect to which the grant is made. 68.19 Project grants may not be used to retire debt incurred with 68.20 respect to any capital expenditure made prior to the date on 68.21 which the project is initiated. Hospitals may apply to the 68.22 program each year they are eligible. 68.23 (g) The commissioner may adopt rules to implement this 68.24 section. 68.25 Subd. 5. [EVALUATION.] The commissioner shall evaluate the 68.26 overall effectiveness of the grant program. The commissioner 68.27 may collect, from the hospital, and communities receiving 68.28 grants,the information necessaryquarterly progress reports to 68.29 evaluate the grant program. Information related to the 68.30 financial condition of individual hospitals shall be classified 68.31 as nonpublic data. 68.32 Subd. 6. [EXPIRATION.] This section expires June 30, 2001. 68.33 Sec. 29. Minnesota Statutes 1998, section 144.1483, is 68.34 amended to read: 68.35 144.1483 [RURAL HEALTH INITIATIVES.] 68.36 The commissioner of health, through the office of rural 69.1 health, and consulting as necessary with the commissioner of 69.2 human services, the commissioner of commerce, the higher 69.3 education services office, and other state agencies, shall: 69.4 (1) develop a detailed plan regarding the feasibility of 69.5 coordinating rural health care services by organizing individual 69.6 medical providers and smaller hospitals and clinics into 69.7 referral networks with larger rural hospitals and clinics that 69.8 provide a broader array of services; 69.9 (2) develop and implement a program to assist rural 69.10 communities in establishing community health centers, as 69.11 required by section 144.1486; 69.12 (3) administer the program of financial assistance 69.13 established under section 144.1484 for rural hospitals in 69.14 isolated areas of the state that are in danger of closing 69.15 without financial assistance, and that have exhausted local 69.16 sources of support; 69.17 (4) develop recommendations regarding health education and 69.18 training programs in rural areas, including but not limited to a 69.19 physician assistants' training program, continuing education 69.20 programs for rural health care providers, and rural outreach 69.21 programs for nurse practitioners within existing training 69.22 programs; 69.23 (5) develop a statewide, coordinated recruitment strategy 69.24 for health care personnel and maintain a database on health care 69.25 personnel as required under section 144.1485; 69.26 (6) develop and administer technical assistance programs to 69.27 assist rural communities in: (i) planning and coordinating the 69.28 delivery of local health care services; and (ii) hiring 69.29 physicians, nurse practitioners, public health nurses, physician 69.30 assistants, and other health personnel; 69.31 (7) study and recommend changes in the regulation of health 69.32 care personnel, such as nurse practitioners and physician 69.33 assistants, related to scope of practice, the amount of on-site 69.34 physician supervision, and dispensing of medication, to address 69.35 rural health personnel shortages; 69.36 (8) support efforts to ensure continued funding for medical 70.1 and nursing education programs that will increase the number of 70.2 health professionals serving in rural areas; 70.3 (9) support efforts to secure higher reimbursement for 70.4 rural health care providers from the Medicare and medical 70.5 assistance programs; 70.6 (10) coordinate the development of a statewide plan for 70.7 emergency medical services, in cooperation with the emergency 70.8 medical services advisory council; 70.9 (11) establish a Medicare rural hospital flexibility 70.10 program pursuant to section 1820 of the federal Social Security 70.11 Act, United States Code, title 42, section 1395i-4, by 70.12 developing a state rural health plan and designating, consistent 70.13 with the rural health plan, rural nonprofit or public hospitals 70.14 in the state as critical access hospitals. Critical access 70.15 hospitals shall include facilities that are certified by the 70.16 state as necessary providers of health care services to 70.17 residents in the area. Necessary providers of health care 70.18 services are designated as critical access hospitals on the 70.19 basis of being more than 20 miles, defined as official mileage 70.20 as reported by the Minnesota department of transportation, from 70.21 the next nearest hospital or being the sole hospital in the 70.22 county or being a hospital located in a designated medical 70.23 underserved area or health professional shortage area. A 70.24 critical access hospital located in a designated medical 70.25 underserved area or a health professional shortage area shall 70.26 continue to be recognized as a critical access hospital in the 70.27 event the medical underserved area or health professional 70.28 shortage area designation is subsequently withdrawn; and 70.29 (12) carry out other activities necessary to address rural 70.30 health problems. 70.31 Sec. 30. Minnesota Statutes 1998, section 144.1492, 70.32 subdivision 3, is amended to read: 70.33 Subd. 3. [ELIGIBLE APPLICANTS AND CRITERIA FOR AWARDING OF 70.34 GRANTS TO RURAL COMMUNITIES.] (a) Funding which the department 70.35 receives to award grants to rural communities to establish 70.36 health care networks shall be awarded through a request for 71.1 proposals process. Planning grant funds may be used for 71.2 community facilitation and initial network development 71.3 activities including incorporation as a nonprofit organization 71.4 or cooperative, assessment of network models, and determination 71.5 of the best fit for the community. Implementation grant funds 71.6 can be used to enable incorporated nonprofit organizations and 71.7 cooperatives to purchase technical services needed for further 71.8 network development such as legal, actuarial, financial, 71.9 marketing, and administrative services. 71.10 (b) In order to be eligible to apply for a planning or 71.11 implementation grant under the federally funded health care 71.12 network reform program, an organization must be located in a 71.13 rural area of Minnesota excluding the seven-county Twin Cities 71.14 metropolitan area and the census-defined urbanized areas of 71.15 Duluth, Rochester, St. Cloud, and Moorhead. The proposed 71.16 network organization must also meet or plan to meet the criteria 71.17 for a community integrated service network. 71.18 (c) In determining which organizations will receive grants, 71.19 the commissioner may consider the following factors: 71.20 (1) the applicant's description of their plans for health 71.21 care network development, their need for technical assistance, 71.22 and other technical assistance resources available to the 71.23 applicant. The applicant must clearly describe the service area 71.24 to be served by the network, how the grant funds will be used, 71.25 what will be accomplished, and the expected results. The 71.26 applicant should describe achievable objectives, a timetable, 71.27 and roles and capabilities of responsible individuals and 71.28 organizations; 71.29 (2) the extent of community support for the applicant and 71.30 the health care network. The applicant should demonstrate 71.31 support from private and public health care providers in the 71.32 service area,and local community and government leaders, and71.33the regional coordinating board for the area. Evidence of such 71.34 support may include a commitment of financial support, in-kind 71.35 services, or cash, for development of the network; 71.36 (3) the size and demographic characteristics of the 72.1 population in the service area for the proposed network and the 72.2 distance of the service area from the nearest metropolitan area; 72.3 and 72.4 (4) the technical assistance resources available to the 72.5 applicant from nonstate sources and the financial ability of the 72.6 applicant to purchase technical assistance services with 72.7 nonstate funds. 72.8 Sec. 31. [144.1498] [LOAN FORGIVENESS FOR RURAL AND 72.9 UNDERSERVED URBAN AREA PHARMACISTS.] 72.10 Subdivision 1. [DEFINITIONS.] (a) For purposes of sections 72.11 144.1498 and 144.1499, the terms defined in this subdivision 72.12 have the meanings given them, unless the context clearly 72.13 indicates otherwise. 72.14 (b) "Designated rural or underserved urban area" means a 72.15 geographic area given that designation by the commissioner of 72.16 health. 72.17 (c) "Eligible applicant" means a pharmacist licensed under 72.18 chapter 151 and practicing in Minnesota. 72.19 (d) "Qualified loan" means a government or commercial loan 72.20 for actual costs paid for tuition, reasonable education 72.21 expenses, and reasonable living expenses related to the graduate 72.22 or undergraduate education of a pharmacist. 72.23 Subd. 2. [CREATION.] The commissioner shall establish a 72.24 loan forgiveness program for pharmacists agreeing to practice in 72.25 designated rural or underserved urban areas. The commissioner 72.26 shall contract with a statewide pharmacist association 72.27 representing all pharmacy practice settings to administer the 72.28 program. The program shall cover up to 25 participants per 72.29 year, and the total number of participants in the program at any 72.30 one time shall not exceed 50 participants. 72.31 Subd. 3. [SELECTION CRITERIA; STARTING DATES.] The 72.32 commissioner shall determine selection criteria for applicants. 72.33 The commissioner shall also determine the participant's starting 72.34 date of service in a rural or underserved urban area. 72.35 Subd. 4. [LOAN FORGIVENESS.] A pharmacist who is accepted 72.36 must sign a contract to serve at least five years in a 73.1 designated rural or underserved urban area. For each year that 73.2 a participant serves as a pharmacist in a designated rural or 73.3 underserved urban area, the commissioner shall annually pay to 73.4 the program administrator an amount equal to one year of 73.5 qualified loans for all participants. Participants who move 73.6 their practice from one designated rural or underserved urban 73.7 area to another remain eligible for loan repayment. 73.8 Subd. 5. [PROCEDURE FOR LOAN REPAYMENT.] A program 73.9 participant, at the time of signing a contract, shall designate 73.10 the qualifying loan or loans up to a maximum of $10,000 per year 73.11 for not more than five years. A participant must make payments 73.12 directly on the participant's loans. The program administrator 73.13 is responsible for verifying the amount of debt, the 73.14 participant's timely repayment of debt, and the participant's 73.15 length and terms of service. The program administrator shall 73.16 reimburse the participant on a quarterly basis for payments made 73.17 by the participant on qualifying loans in an amount not to 73.18 exceed $10,000 per year when annualized. If the amount 73.19 reimbursed by the program administrator is less than $10,000 73.20 during a 12-month period, the program administrator shall pay 73.21 during the 12th month an additional amount toward a loan or 73.22 loans designated by the participant, to bring the total paid to 73.23 $10,000. The total amount reimbursed by the program 73.24 administrator must not exceed the amount of principal and 73.25 accrued interest of the designated loans. 73.26 Subd. 6. [TAX RESPONSIBILITY.] The participant is 73.27 responsible for reporting on federal income tax returns any 73.28 amount paid by the state on designated loans, if required to do 73.29 so by federal law. 73.30 Subd. 7. [PENALTY FOR NONFULFILLMENT.] If a participant 73.31 does not fulfill the required five-year minimum commitment of 73.32 service in a designated rural or underserved urban area, the 73.33 program administrator shall recover from the participant the 73.34 amount paid under the loan forgiveness program. A program 73.35 participant who fails to complete at least three years of 73.36 obligated service shall repay the amount paid, as well as a 74.1 financial penalty based upon the length of the service 74.2 obligation not fulfilled. If the participant has served at 74.3 least two years, the financial penalty is the number of unserved 74.4 months multiplied by $1,000. If the participant has served less 74.5 than two years, the financial penalty is the total number of 74.6 obligated months multiplied by $1,000. The program 74.7 administrator has the authority to collect on all loan defaults. 74.8 Subd. 8. [SUSPENSION OR WAIVER OF OBLIGATION.] Payment or 74.9 service obligations cancel in the event of a participant's 74.10 death. The commissioner may waive or suspend payment or service 74.11 obligations in case of total and permanent disability or 74.12 long-term temporary disability lasting for more than two years. 74.13 The commissioner shall evaluate all other requests for 74.14 suspension or waivers on a case-by-case basis and may grant a 74.15 waiver of all or part of the money owed as a result of a 74.16 nonfulfillment penalty if emergency circumstances prevented 74.17 fulfillment of the required service commitment. 74.18 Sec. 32. [144.1499] [RURAL AND UNDERSERVED URBAN AREA 74.19 PHARMACY FINANCIAL ASSISTANCE.] 74.20 Subdivision 1. [ESTABLISHED.] The commissioner of health 74.21 shall award financial assistance grants to pharmacies in 74.22 designated rural or underserved urban areas that are designated 74.23 as sole community pharmacies. 74.24 Subd. 2. [PROGRAM ADMINISTRATION.] The commissioner shall 74.25 contract with a statewide pharmacist association representing 74.26 all pharmacy practice settings to administer the program. The 74.27 commissioner shall establish criteria for determining sole 74.28 community pharmacies in rural and underserved urban areas. 74.29 Subd. 3. [EVIDENCE OF LOCAL SUPPORT.] In selecting 74.30 pharmacies to receive grants, the program administrator shall 74.31 take into account the extent of local support for the pharmacy. 74.32 Evidence of local support may include statements issued by a 74.33 local government entity, such as a city or county, and loans, 74.34 grants, or donations to the pharmacy from local government 74.35 entities, private organizations, or individuals. 74.36 Subd. 4. [GRANT AWARDS.] The program administrator shall 75.1 determine the amount of the award to be given to each eligible 75.2 pharmacy based on the pharmacy's total operating losses as a 75.3 percentage of total operating revenue for two of the previous 75.4 three most recent consecutive fiscal years. For purposes of 75.5 calculating a pharmacy's operating loss margin, total operating 75.6 revenue does not include grant funding provided under this 75.7 section. The available funds shall be disbursed proportionately 75.8 based on the operating loss margins of all eligible pharmacies. 75.9 Sec. 33. [144.3431] [ABORTION NOTIFICATION DATA.] 75.10 Subdivision 1. [REPORTING FORM.] (a) Within 90 days of the 75.11 effective date of this section, the commissioner of health shall 75.12 prepare a reporting form for use by physicians and facilities 75.13 performing abortions. 75.14 (b) The form shall require the following information: 75.15 (1) the number of minors or women for whom a guardian or 75.16 conservator has been appointed under sections 525.54 to 525.551 75.17 because of a finding of incompetency for whom the physician or 75.18 an agent of the physician provided the notice described in 75.19 section 144.343, subdivision 2; of that number, the number of 75.20 notices provided personally as described in section 144.343, 75.21 subdivision 2, paragraph (a), and the number of notices provided 75.22 by mail as described in section 144.343, subdivision 2, 75.23 paragraph (b); and of each of those numbers, the number who, to 75.24 the best of the reporting physician's or reporting facility's 75.25 information and belief, went on to obtain the abortion from the 75.26 reporting physician or reporting physician's facility, or from 75.27 the reporting facility; 75.28 (2) the number of minors or women for whom a guardian or 75.29 conservator has been appointed under sections 525.54 to 525.551 75.30 because of a finding of incompetency upon whom the physician 75.31 performed an abortion without providing the notice described in 75.32 section 144.343, subdivision 2; and of that number, the number 75.33 who were emancipated minors, and the number for whom section 75.34 144.343, subdivision 4, was applicable, itemized by each of the 75.35 limitations identified in paragraphs (a), (b), and (c) of that 75.36 subdivision; 76.1 (3) the number of abortions performed by the physician for 76.2 which judicial authorization was received and for which the 76.3 notification described in section 144.343, subdivision 2, was 76.4 not provided; 76.5 (4) the county the female resides in; the county where the 76.6 abortion was performed, if different from the female's 76.7 residence; and, if a judicial bypass was obtained, the county it 76.8 was obtained in, if different from the female's residence; 76.9 (5) the age of the female; 76.10 (6) the race of the female; 76.11 (7) the process the physician or the physician's agent used 76.12 to inform the female of the judicial bypass; whether court forms 76.13 were provided to her; and whether the physician or the 76.14 physician's agent made the court arrangement for the female; and 76.15 (8) how soon after visiting the abortion facility the 76.16 female went to court to obtain a judicial bypass. 76.17 Subd. 2. [FORMS TO PHYSICIANS AND FACILITIES.] Physicians 76.18 and facilities required to report under subdivision 3 shall 76.19 obtain reporting forms from the commissioner. 76.20 Subd. 3. [SUBMISSION.] (a) The following physicians or 76.21 facilities must submit the forms to the commissioner no later 76.22 than April 1 for abortions performed in the previous calendar 76.23 year: 76.24 (1) a physician who provides, or whose agent provides, the 76.25 notice described in section 144.343, subdivision 2, or the 76.26 facility at which such notice is provided; and 76.27 (2) a physician who knowingly performs an abortion upon a 76.28 minor or a woman for whom a guardian or conservator has been 76.29 appointed according to sections 525.54 to 525.551 because of a 76.30 finding of incompetency, or a facility at which such an abortion 76.31 is performed. 76.32 (b) The commissioner shall maintain as confidential, data 76.33 which alone or in combination may constitute information that 76.34 would reasonably lead, using epidemiologic principles, to the 76.35 identification of: 76.36 (1) an individual who has had an abortion, who has received 77.1 judicial authorization for an abortion, or to whom the notice 77.2 described in section 144.343, subdivision 2, has been provided; 77.3 or 77.4 (2) a physician or facility required to report under 77.5 paragraph (a). 77.6 Subd. 4. [FAILURE TO REPORT AS REQUIRED.] (a) Reports that 77.7 are not submitted more than 30 days following the due date shall 77.8 be subject to a late fee of $500 for each additional 30-day 77.9 period or portion of a 30-day period overdue. If a physician or 77.10 facility required to report under this section has not submitted 77.11 a report, or has submitted only an incomplete report, more than 77.12 one year following the due date, the commissioner of health 77.13 shall bring an action in a court of competent jurisdiction for 77.14 an order directing the physician or facility to submit a 77.15 complete report within a period stated by court order or be 77.16 subject to sanctions. If the commissioner brings such an action 77.17 for an order directing a physician or facility to submit a 77.18 complete report, the court may assess reasonable attorney fees 77.19 and costs against the noncomplying party. 77.20 (b) Notwithstanding section 13.39, data related to actions 77.21 taken by the commissioner to enforce any provision of this 77.22 section is private data if the data, alone or in combination, 77.23 may constitute information that would reasonably lead, using 77.24 epidemiologic principles, to the identification of: 77.25 (1) an individual who has had an abortion, who has received 77.26 judicial authorization for an abortion, or to whom the notice 77.27 described in section 144.343, subdivision 2, has been provided; 77.28 or 77.29 (2) a physician or facility required to report under 77.30 subdivision 3. 77.31 Subd. 5. [PUBLIC RECORDS.] (a) By September 30 of each 77.32 year, the commissioner of health shall issue a public report 77.33 providing statistics for each item listed in subdivision 1 for 77.34 the previous calendar year compiled from reports submitted 77.35 according to this section. The report shall also include 77.36 statistics, which shall be obtained from court administrators, 78.1 that include: 78.2 (1) the total number of petitions or motions filed under 78.3 section 144.343, subdivision 6, paragraph (c), clause (i); 78.4 (2) the number of cases in which the court appointed a 78.5 guardian ad litem; 78.6 (3) the number of cases in which the court appointed 78.7 counsel; 78.8 (4) the number of cases in which the judge issued an order 78.9 authorizing an abortion without notification, including: 78.10 (i) the number of petitions or motions granted by the court 78.11 because of a finding of maturity and the basis for that finding; 78.12 and 78.13 (ii) the number of petitions or motions granted because of 78.14 a finding that the abortion would be in the best interest of the 78.15 minor and the basis for that finding; 78.16 (5) the number of denials from which an appeal was filed; 78.17 (6) the number of appeals that resulted in a denial being 78.18 affirmed; and 78.19 (7) the number of appeals that resulted in reversal of a 78.20 denial. 78.21 (b) The report shall provide the statistics for all 78.22 previous calendar years for which a public report was required 78.23 to be issued, adjusted to reflect any additional information 78.24 from late or corrected reports. 78.25 (c) The commissioner shall ensure that all statistical 78.26 information included in the public reports are presented so that 78.27 the data cannot reasonably lead, using epidemiologic principles, 78.28 to the identification of: 78.29 (1) an individual who has had an abortion, who has received 78.30 judicial authorization for an abortion, or to whom the notice 78.31 described in section 144.343, subdivision 2, has been provided; 78.32 or 78.33 (2) a physician or facility who has submitted a form to the 78.34 commissioner under subdivision 3. 78.35 Subd. 6. [MODIFICATION OF REQUIREMENTS.] The commissioner 78.36 of health may, by administrative rule, alter the dates 79.1 established in subdivisions 3 and 5, consolidate the forms 79.2 created according to subdivision 1 with the reporting form 79.3 created according to section 145.4131, or consolidate reports to 79.4 achieve administrative convenience or fiscal savings, to allow 79.5 physicians and facilities to submit all information collected by 79.6 the commissioner regarding abortions at one time, or to reduce 79.7 the burden of the data collection, so long as the report 79.8 described in subdivision 5 is issued at least once a year. 79.9 Subd. 7. [SUIT TO COMPEL STATISTICAL REPORT.] If the 79.10 commissioner of health fails to issue the public report required 79.11 under subdivision 5, any group of ten or more citizens of the 79.12 state may seek an injunction in a court of competent 79.13 jurisdiction against the commissioner, requiring that a complete 79.14 report be issued within a period stated by court order. Failure 79.15 to abide by the injunction shall subject the commissioner to 79.16 sanctions for civil contempt. 79.17 Subd. 8. [ATTORNEY'S FEES.] If judgment is rendered in 79.18 favor of the plaintiff in any action described in this section, 79.19 the court shall also render judgment for a reasonable attorney's 79.20 fee in favor of the plaintiff against the defendant. If the 79.21 judgment is rendered in favor of the defendant and the court 79.22 finds that plaintiff's suit was frivolous and brought in bad 79.23 faith, the court shall render judgment for a reasonable 79.24 attorney's fee in favor of the defendant against the plaintiff. 79.25 Subd. 9. [SEVERABILITY.] If any one or more provision, 79.26 section, subdivision, sentence, clause, phrase, or word of this 79.27 section or the application thereof to any person or circumstance 79.28 is found to be unconstitutional, the same is hereby declared to 79.29 be severable and the balance of this section shall remain 79.30 effective notwithstanding such unconstitutionality. The 79.31 legislature hereby declares that it would have passed this 79.32 section, and each provision, section, subdivision, sentence, 79.33 clause, phrase, or word thereof irrespective of the fact that 79.34 any one provision, section, subdivision, sentence, clause, 79.35 phrase, or word be declared unconstitutional. 79.36 Sec. 34. Minnesota Statutes 1998, section 144.413, 80.1 subdivision 2, is amended to read: 80.2 Subd. 2. [PUBLIC PLACE.] "Public place" means any 80.3 enclosed, indoor area used by the general public or serving as a 80.4 place of work, including, but not limited to, restaurants, 80.5 retail stores, offices and other commercial establishments, 80.6 public conveyances, educational facilities other than public 80.7 schools, as defined in section 120A.05,subdivisionsubdivisions 80.8 9, 11, and 13, hospitals, nursing homes, auditoriums, arenas, 80.9 meeting rooms, and common areas of rental apartment buildings, 80.10 but excluding private, enclosed offices occupied exclusively by 80.11 smokers even though such offices may be visited by nonsmokers. 80.12 (Effective Date: Section 34 (144.413, subdivision 2) is 80.13 effective the day following final enactment.) 80.14 Sec. 35. Minnesota Statutes 1998, section 144.414, 80.15 subdivision 1, is amended to read: 80.16 Subdivision 1. [PUBLIC PLACES.] No person shall smoke in a 80.17 public place or at a public meeting except in designated smoking 80.18 areas. This prohibition does not apply in cases in which an 80.19 entire room or hall is used for a private social function and 80.20 seating arrangements are under the control of the sponsor of the 80.21 function and not of the proprietor or person in charge of the 80.22 place.Furthermore, this prohibition shall not apply to80.23factories, warehouses, and similar places of work not usually80.24frequented by the general public, except that the state80.25commissioner of health shall establish rules to restrict or80.26prohibit smoking in those places of work where the close80.27proximity of workers or the inadequacy of ventilation causes80.28smoke pollution detrimental to the health and comfort of80.29nonsmoking employees.80.30 (Effective Date: Section 35 (144.414, subdivision 1) is 80.31 effective the day following final enactment.) 80.32 Sec. 36. Minnesota Statutes 1998, section 144.4165, is 80.33 amended to read: 80.34 144.4165 [TOBACCO PRODUCTS PROHIBITED IN PUBLIC SCHOOLS.] 80.35 No person shall at any time smoke, chew, or otherwise 80.36 ingest tobacco or a tobacco product in a public school, as 81.1 defined in section 120A.05,subdivisionsubdivisions 9, 11, and 81.2 13. This prohibition extends to all facilities, whether owned, 81.3 rented, or leased, and all vehicles that a school district owns, 81.4 leases, rents, contracts for, or controls. Nothing in this 81.5 section shall prohibit the lighting of tobacco by an adult as a 81.6 part of a traditional Indian spiritual or cultural ceremony. 81.7 For purposes of this section, an Indian is a person who is a 81.8 member of an Indian tribe as defined in section 257.351, 81.9 subdivision 9. 81.10 (Effective Date: Section 36 (144.4165) is effective the 81.11 day following final enactment.) 81.12 Sec. 37. Minnesota Statutes 1998, section 144.56, 81.13 subdivision 2b, is amended to read: 81.14 Subd. 2b. [BOARDING CARE HOMES.] The commissioner shall 81.15 not adopt or enforce any rule that limits: 81.16 (1) a certified boarding care home from providing nursing 81.17 services in accordance with the home's Medicaid certification; 81.18 or 81.19 (2) a noncertified boarding care home registered under 81.20 chapter 144D from providing home care services in accordance 81.21 with the home's registration. 81.22 Sec. 38. Minnesota Statutes 1998, section 144.99, 81.23 subdivision 1, is amended to read: 81.24 Subdivision 1. [REMEDIES AVAILABLE.] The provisions of 81.25 chapters 103I and 157 and sections 115.71 to 115.77; 144.12, 81.26 subdivision 1, paragraphs (1), (2), (5), (6), (10), (12), (13), 81.27 (14), and (15); 144.1201 to 144.1204; 144.121; 144.1222; 81.28 144.3431; 144.35; 144.381 to 144.385; 144.411 to 144.417; 81.29 144.495; 144.71 to 144.74; 144.9501 to 144.9509; 81.30 144.992; 145.4131 to 145.4136; 326.37 to 326.45; 326.57 to 81.31 326.785; 327.10 to 327.131; and 327.14 to 327.28 and all rules, 81.32 orders, stipulation agreements, settlements, compliance 81.33 agreements, licenses, registrations, certificates, and permits 81.34 adopted or issued by the department or under any other law now 81.35 in force or later enacted for the preservation of public health 81.36 may, in addition to provisions in other statutes, be enforced 82.1 under this section. 82.2 Sec. 39. Minnesota Statutes 1998, section 144.99, is 82.3 amended by adding a subdivision to read: 82.4 Subd. 12. [SECURING RADIOACTIVE MATERIALS.] (a) In the 82.5 event of an emergency that poses a danger to the public health, 82.6 the commissioner shall have the authority to impound radioactive 82.7 materials and the associated shielding in the possession of a 82.8 person who fails to abide by the provisions of the statutes, 82.9 rules, and any other item listed in subdivision 1. If 82.10 impounding the source of these materials is impractical, the 82.11 commissioner shall have the authority to lock or otherwise 82.12 secure a facility that contains the source of such materials, 82.13 but only the portions of the facility as is necessary to protect 82.14 the public health. An action taken under this paragraph is 82.15 effective for up to 72 hours. The commissioner must seek an 82.16 injunction or take other administrative action to secure 82.17 radioactive materials beyond the initial 72-hour period. 82.18 (b) The commissioner may release impounded radioactive 82.19 materials and the associated shielding to the owner of the 82.20 radioactive materials and associated shielding, upon terms and 82.21 conditions that are in accordance with the provisions of 82.22 statutes, rules, and other items listed in subdivision 1. In 82.23 the alternative, the commissioner may bring an action in a court 82.24 of competent jurisdiction for an order directing the disposal of 82.25 impounded radioactive materials and associated shielding or 82.26 directing other disposition as necessary to protect the public 82.27 health and safety and the environment. The costs of 82.28 decontamination, transportation, burial, disposal, or other 82.29 disposition shall be borne by the owner or licensee of the 82.30 radioactive materials and shielding or by any other person who 82.31 has used the radioactive materials and shielding for business 82.32 purposes. 82.33 Sec. 40. Minnesota Statutes 1998, section 144A.4605, 82.34 subdivision 2, is amended to read: 82.35 Subd. 2. [ASSISTED LIVING HOME CARE LICENSE ESTABLISHED.] 82.36 A home care provider license category entitled assisted living 83.1 home care provider is hereby established. A home care provider 83.2 may obtain an assisted living license if the program meets the 83.3 following requirements: 83.4 (a) nursing services, delegated nursing services, other 83.5 services performed by unlicensed personnel, or central storage 83.6 of medications under the assisted living license are provided 83.7 solely for residents of one or more housing with services 83.8 establishments registered under chapter 144D; 83.9 (b) unlicensed personnel perform home health aide and home 83.10 care aide tasks identified in Minnesota Rules, parts 4668.0100, 83.11 subparts 1 and 2, and 4668.0110, subpart 1. Qualifications to 83.12 perform these tasks shall be established in accordance with 83.13 subdivision 3; 83.14 (c) periodic supervision of unlicensed personnel is 83.15 provided as required by rule; 83.16 (d) notwithstanding Minnesota Rules, part 4668.0160, 83.17 subpart 6, item D, client records shall include: 83.18 (1) daily records or a weekly summary ofthe client's83.19status andhome care services provided; 83.20 (2) documentation each time medications are administered to 83.21 a client; and 83.22 (3) documentation on the day of occurrence of any 83.23 significant change in the client's status or any significant 83.24 incident, such as a fall or refusal to take medications. 83.25 All entries must be signed by the staff providing the 83.26 services and entered into the record no later than two weeks 83.27 after the end of the service day, except as specified in clauses 83.28 (2) and (3); 83.29 (e) medication and treatment orders, if any, are included 83.30 in the client record and are renewed at least every 12 months, 83.31 or more frequently when indicated by a clinical assessment; 83.32 (f) the central storage of medications in a housing with 83.33 services establishment registered under chapter 144D is managed 83.34 under a system that is established by a registered nurse and 83.35 addresses the control of medications, handling of medications, 83.36 medication containers, medication records, and disposition of 84.1 medications; and 84.2 (g) in other respects meets the requirements established by 84.3 rules adopted under sections 144A.45 to 144A.48. 84.4 Sec. 41. Minnesota Statutes 1998, section 144D.01, 84.5 subdivision 4, is amended to read: 84.6 Subd. 4. [HOUSING WITH SERVICES ESTABLISHMENT OR 84.7 ESTABLISHMENT.] "Housing with services establishment" or 84.8 "establishment" means an establishment providing sleeping 84.9 accommodations to one or more adult residents, at least 80 84.10 percent of which are 55 years of age or older, and offering or 84.11 providing, for a fee, one or more regularly scheduled 84.12 health-related services or two or more regularly scheduled 84.13 supportive services, whether offered or provided directly by the 84.14 establishment or by another entity arranged for by the 84.15 establishment. 84.16 Housing with services establishment does not include: 84.17 (1) a nursing home licensed under chapter 144A; 84.18 (2) a hospital, certified boarding care home, or supervised 84.19 living facility licensed under sections 144.50 to 144.56; 84.20 (3) a board and lodging establishment licensed under 84.21 chapter 157 and Minnesota Rules, parts 9520.0500 to 9520.0670, 84.22 9525.0215 to 9525.0355, 9525.0500 to 9525.0660, or 9530.4100 to 84.23 9530.4450, or under chapter 245B; 84.24 (4) a board and lodging establishment which serves as a 84.25 shelter for battered women or other similar purpose; 84.26 (5) a family adult foster care home licensed by the 84.27 department of human services; 84.28 (6) private homes in which the residents are related by 84.29 kinship, law, or affinity with the providers of services; 84.30 (7) residential settings for persons with mental 84.31 retardation or related conditions in which the services are 84.32 licensed under Minnesota Rules, parts 9525.2100 to 9525.2140, or 84.33 applicable successor rules or laws; 84.34 (8) a home-sharing arrangement such as when an elderly or 84.35 disabled person or single-parent family makes lodging in a 84.36 private residence available to another person in exchange for 85.1 services or rent, or both; 85.2 (9) a duly organized condominium, cooperative, common 85.3 interest community, or owners' association of the foregoing 85.4 where at least 80 percent of the units that comprise the 85.5 condominium, cooperative, or common interest community are 85.6 occupied by individuals who are the owners, members, or 85.7 shareholders of the units; or 85.8 (10) services for persons with developmental disabilities 85.9 that are provided under a license according to Minnesota Rules, 85.10 parts 9525.2000 to 9525.2140 in effect until January 1, 1998, or 85.11 under chapter 245B. 85.12 Sec. 42. [145.4201] [PARTIAL-BIRTH ABORTION; DEFINITIONS.] 85.13 Subdivision 1. [TERMS.] As used in sections 145.4201 to 85.14 145.4206, the terms defined in this section have the meanings 85.15 given them. 85.16 Subd. 2. [ABORTION.] "Abortion" means the use of any means 85.17 to intentionally terminate the pregnancy of a female known to be 85.18 pregnant with knowledge that the termination with those means 85.19 will, with reasonable likelihood, cause the death of the fetus. 85.20 Subd. 3. [FETUS.] "Fetus" is used to refer to the 85.21 biological offspring of human parents. 85.22 Subd. 4. [PARTIAL-BIRTH ABORTION.] "Partial-birth abortion" 85.23 means an abortion in which the person performing the abortion 85.24 partially vaginally delivers a living fetus before killing the 85.25 fetus and completing the delivery. 85.26 Subd. 5. [PARTIALLY VAGINALLY DELIVERS A LIVING FETUS 85.27 BEFORE KILLING THE FETUS.] "Partially vaginally delivers a 85.28 living fetus before killing the fetus" means deliberately and 85.29 intentionally delivers into the vagina a living fetus, or a 85.30 substantial portion thereof, for the purpose of performing a 85.31 procedure the physician knows will kill the fetus, and kills the 85.32 fetus. 85.33 Sec. 43. [145.4202] [PARTIAL-BIRTH ABORTIONS PROHIBITED.] 85.34 No person shall knowingly perform a partial-birth abortion. 85.35 Sec. 44. [145.4203] [LIFE OF THE MOTHER EXCEPTION.] 85.36 The prohibition under section 145.4202 shall not apply to a 86.1 partial-birth abortion that is necessary to save the life of the 86.2 mother because her life is endangered by a physical disorder, 86.3 physical illness, or physical injury. 86.4 Sec. 45. [145.4204] [CIVIL REMEDIES.] 86.5 Subdivision 1. [STANDING.] The woman upon whom a 86.6 partial-birth abortion has been performed in violation of 86.7 sections 145.4201 to 145.4206, the father if married to the 86.8 mother at the time she receives a partial-birth abortion 86.9 procedure, and the maternal grandparents of the fetus if the 86.10 mother has not attained the age of 18 years at the time of the 86.11 abortion, may obtain appropriate relief in a civil action, 86.12 unless the pregnancy resulted from the plaintiff's criminal 86.13 conduct or the plaintiff consented to the abortion. 86.14 Subd. 2. [TYPE OF RELIEF.] Relief shall include: 86.15 (1) money damages for all injuries, psychological and 86.16 physical, occasioned by the violation of sections 145.4201 to 86.17 145.4206; and 86.18 (2) statutory damages equal to three times the cost of the 86.19 partial-birth abortion. 86.20 Subd. 3. [ATTORNEY'S FEE.] If judgment is rendered in 86.21 favor of the plaintiff in an action described in this section, 86.22 the court shall also render judgment for a reasonable attorney's 86.23 fee in favor of the plaintiff against the defendant. If the 86.24 judgment is rendered in favor of the defendant and the court 86.25 finds that the plaintiff's suit was frivolous and brought in bad 86.26 faith, the court shall also render judgment for a reasonable 86.27 attorney's fee in favor of the defendant against the plaintiff. 86.28 Sec. 46. [145.4205] [CRIMINAL PENALTY.] 86.29 Subdivision 1. [FELONY.] A person who performs a 86.30 partial-birth abortion in knowing violation of sections 145.4201 86.31 to 145.4206 is guilty of a felony and may be sentenced to 86.32 imprisonment for not more than two years or to payment of a fine 86.33 of not more than $4,000, or both. 86.34 Subd. 2. [ADMINISTRATIVE FINDING.] (a) A defendant accused 86.35 of an offense under this section may seek a hearing before the 86.36 state board of medical practice on whether the physician's 87.1 conduct was necessary to save the life of the mother whose life 87.2 was endangered by a physical disorder, illness, or injury. 87.3 (b) The findings of the state board of medical practice on 87.4 that issue are admissible at the trial of the defendant. Upon 87.5 motion of the defendant, the court shall delay the beginning of 87.6 the trial for not more than 30 days to permit the hearing to 87.7 take place. 87.8 Subd. 3. [PROSECUTION OF MOTHER PROHIBITED.] A woman upon 87.9 whom a partial-birth abortion is performed may not be prosecuted 87.10 under this section for violating sections 145.4201 to 145.4206, 87.11 or any provision thereof, or for conspiracy to violate sections 87.12 145.4201 to 145.4206, or any provision thereof. 87.13 (Effective Date: Section 46 (145.4205, subdivisions 1 to 3) 87.14 are effective July 1, 1999, and applies to crimes committed on 87.15 or after that date.) 87.16 Sec. 47. [145.4206] [SEVERABILITY.] 87.17 (a) If any provision, word, phrase, or clause of section 87.18 145.4203, or the application thereof to any person or 87.19 circumstance is found to be unconstitutional, the same is hereby 87.20 declared to be inseverable. 87.21 (b) If any provision, section, paragraph, sentence, clause, 87.22 phrase, or word of section 145.4201, 145.4202, 145.4204, 87.23 145.4205, or 145.4206, or the application thereof to any person 87.24 or circumstance is found to be unconstitutional, the same is 87.25 hereby declared to be severable and the balance of sections 87.26 145.4201 to 145.4206 shall remain effective notwithstanding such 87.27 unconstitutionality. The legislature hereby declares that it 87.28 would have passed sections 145.4201 to 145.4206, and each 87.29 provision, section, paragraph, sentence, clause, phrase, or word 87.30 thereto, with the exception of section 145.4203, irrespective of 87.31 the fact that a provision, section, paragraph, sentence, clause, 87.32 phrase, or word be declared unconstitutional. 87.33 Sec. 48. [145.4241] [DEFINITIONS.] 87.34 Subdivision 1. [APPLICABILITY.] As used in sections 87.35 145.4241 to 145.4246, the following terms have the meaning given 87.36 them. 88.1 Subd. 2. [ABORTION.] "Abortion" means the use or 88.2 prescription of any instrument, medicine, drug, or any other 88.3 substance or device to intentionally terminate the pregnancy of 88.4 a female known to be pregnant, with an intention other than to 88.5 increase the probability of a live birth, to preserve the life 88.6 or health of the child after live birth, or to remove a dead 88.7 fetus. 88.8 Subd. 3. [ATTEMPT TO PERFORM AN ABORTION.] "Attempt to 88.9 perform an abortion" means an act, or an omission of a 88.10 statutorily required act, that, under the circumstances as the 88.11 actor believes them to be, constitutes a substantial step in a 88.12 course of conduct planned to culminate in the performance of an 88.13 abortion in Minnesota in violation of sections 145.4241 to 88.14 145.4246. 88.15 Subd. 4. [MEDICAL EMERGENCY.] "Medical emergency" means 88.16 any condition that, on the basis of the physician's good faith 88.17 clinical judgment, complicates the medical condition of a 88.18 pregnant female to the extent that: 88.19 (1) an immediate abortion of her pregnancy is necessary to 88.20 avert her death; or 88.21 (2) a 24-hour delay in performing an abortion creates a 88.22 serious risk of substantial and irreversible impairment of a 88.23 major bodily function. 88.24 Subd. 5. [PHYSICIAN.] "Physician" means a person licensed 88.25 under chapter 147. 88.26 Subd. 6. [PROBABLE GESTATIONAL AGE OF THE UNBORN 88.27 CHILD.] "Probable gestational age of the unborn child" means 88.28 what will, in the judgment of the physician, with reasonable 88.29 probability, be the gestational age of the unborn child at the 88.30 time the abortion is planned to be performed. 88.31 Sec. 49. [145.4242] [INFORMED CONSENT.] 88.32 No abortion shall be performed in this state except with 88.33 the voluntary and informed consent of the female upon whom the 88.34 abortion is to be performed. Except in the case of a medical 88.35 emergency, consent to an abortion is voluntary and informed only 88.36 if: 89.1 (1) the female is told the following, by telephone or in 89.2 person, by the physician who is to perform the abortion or by a 89.3 referring physician, at least 24 hours before the abortion: 89.4 (i) the name of the physician who will perform the 89.5 abortion; 89.6 (ii) the particular medical risks associated with the 89.7 particular abortion procedure to be employed including, when 89.8 medically accurate, the risks of infection, hemorrhage, breast 89.9 cancer, danger to subsequent pregnancies, and infertility; 89.10 (iii) the probable gestational age of the unborn child at 89.11 the time the abortion is to be performed; and 89.12 (iv) the medical risks associated with carrying her child 89.13 to term. 89.14 The information required by this clause may be provided by 89.15 telephone without conducting a physical examination or tests of 89.16 the patient, in which case the information required to be 89.17 provided may be based on facts supplied the physician by the 89.18 female and whatever other relevant information is reasonably 89.19 available to the physician. It may not be provided by a tape 89.20 recording, but must be provided during a consultation in which 89.21 the physician is able to ask questions of the female and the 89.22 female is able to ask questions of the physician. If a physical 89.23 examination, tests, or the availability of other information to 89.24 the physician subsequently indicate, in the medical judgment of 89.25 the physician, a revision of the information previously supplied 89.26 to the patient, that revised information may be communicated to 89.27 the patient at any time prior to the performance of the 89.28 abortion. Nothing in this section may be construed to preclude 89.29 provision of required information in a language understood by 89.30 the patient through a translator; 89.31 (2) the female is informed, by telephone or in person, by 89.32 the physician who is to perform the abortion, by a referring 89.33 physician, or by an agent of either physician at least 24 hours 89.34 before the abortion: 89.35 (i) that medical assistance benefits may be available for 89.36 prenatal care, childbirth, and neonatal care; 90.1 (ii) that the father is liable to assist in the support of 90.2 her child, even in instances when the father has offered to pay 90.3 for the abortion; and 90.4 (iii) that she has the right to review the printed 90.5 materials described in section 145.4243. The physician or the 90.6 physician's agent shall orally inform the female that the 90.7 materials have been provided by the state of Minnesota and that 90.8 they describe the unborn child and list agencies that offer 90.9 alternatives to abortion. If the female chooses to view the 90.10 materials, they shall either be given to her at least 24 hours 90.11 before the abortion or mailed to her at least 72 hours before 90.12 the abortion by certified mail, restricted delivery to 90.13 addressee, which means the postal employee can only deliver the 90.14 mail to the addressee. 90.15 The information required by this clause may be provided by 90.16 a tape recording if provision is made to record or otherwise 90.17 register specifically whether the female does or does not choose 90.18 to review the printed materials; 90.19 (3) the female certifies in writing, prior to the abortion, 90.20 that the information described in this section has been 90.21 furnished her, and that she has been informed of her opportunity 90.22 to review the information referred to in clause (2); and 90.23 (4) prior to the performance of the abortion, the physician 90.24 who is to perform the abortion or the physician's agent receives 90.25 a copy of the written certification prescribed by clause (3). 90.26 Sec. 50. [145.4243] [PRINTED INFORMATION.] 90.27 (a) Within 90 days after the effective date of sections 90.28 145.4241 to 145.4246, the department of health shall cause to be 90.29 published, in English and in each language that is the primary 90.30 language of two percent or more of the state's population, the 90.31 following printed materials in such a way as to ensure that the 90.32 information is easily comprehensible: 90.33 (1) geographically indexed materials designed to inform the 90.34 female of public and private agencies and services available to 90.35 assist a female through pregnancy, upon childbirth, and while 90.36 the child is dependent, including adoption agencies, which shall 91.1 include a comprehensive list of the agencies available, a 91.2 description of the services they offer, and a description of the 91.3 manner, including telephone numbers, in which they might be 91.4 contacted or, at the option of the department of health, printed 91.5 materials including a toll-free, 24-hours-a-day telephone number 91.6 that may be called to obtain, orally, such a list and 91.7 description of agencies in the locality of the caller and of the 91.8 services they offer; and 91.9 (2) materials designed to inform the female of the probable 91.10 anatomical and physiological characteristics of the unborn child 91.11 at two-week gestational increments from the time when a female 91.12 can be known to be pregnant to full term, including any relevant 91.13 information on the possibility of the unborn child's survival 91.14 and pictures or drawings representing the development of unborn 91.15 children at two-week gestational increments, provided that any 91.16 such pictures or drawings must contain the dimensions of the 91.17 fetus and must be realistic and appropriate for the stage of 91.18 pregnancy depicted. The materials shall be objective, 91.19 nonjudgmental, and designed to convey only accurate scientific 91.20 information about the unborn child at the various gestational 91.21 ages. The material shall also contain objective information 91.22 describing the methods of abortion procedures commonly employed, 91.23 the medical risks commonly associated with each procedure, the 91.24 possible detrimental psychological effects of abortion, the 91.25 medical risks commonly associated with each procedure, and the 91.26 medical risks commonly associated with carrying a child to term. 91.27 (b) The materials referred to in this section must be 91.28 printed in a typeface large enough to be clearly legible. The 91.29 materials required under this section must be available at no 91.30 cost from the department of health upon request and in 91.31 appropriate number to any person, facility, or hospital. 91.32 Sec. 51. [145.4244] [PROCEDURE IN CASE OF MEDICAL 91.33 EMERGENCY.] 91.34 When a medical emergency compels the performance of an 91.35 abortion, the physician shall inform the female, prior to the 91.36 abortion if possible, of the medical indications supporting the 92.1 physician's judgment that an abortion is necessary to avert her 92.2 death or that a 24-hour delay in conformance with section 92.3 145.4242 creates a serious risk of substantial and irreversible 92.4 impairment of a major bodily function. 92.5 Sec. 52. [145.4245] [REMEDIES.] 92.6 Subdivision 1. [CIVIL REMEDIES.] Any person upon whom an 92.7 abortion has been performed or the parent of a minor upon whom 92.8 an abortion has been performed may maintain an action against 92.9 the person who performed the abortion in knowing or reckless 92.10 violation of sections 145.4241 to 145.4246 for actual and 92.11 punitive damages. Any person upon whom an abortion has been 92.12 attempted without complying with sections 145.4241 to 145.4246 92.13 may maintain an action against the person who attempted to 92.14 perform the abortion in knowing or reckless violation of 92.15 sections 145.4241 to 145.4246 for actual and punitive damages. 92.16 Subd. 2. [ATTORNEY FEES.] If judgment is rendered in favor 92.17 of the plaintiff in any action described in this section, the 92.18 court shall also render judgment for a reasonable attorney's fee 92.19 in favor of the plaintiff against the defendant. If judgment is 92.20 rendered in favor of the defendant and the court finds that the 92.21 plaintiff's suit was frivolous and brought in bad faith, the 92.22 court shall also render judgment for a reasonable attorney's fee 92.23 in favor of the defendant against the plaintiff. 92.24 Subd. 3. [PROTECTION OF PRIVACY IN COURT PROCEEDINGS.] In 92.25 every civil action brought under sections 145.4241 to 145.4246, 92.26 the court shall rule whether the anonymity of any female upon 92.27 whom an abortion has been performed or attempted shall be 92.28 preserved from public disclosure if she does not give her 92.29 consent to such disclosure. The court, upon motion or sua 92.30 sponte, shall make such a ruling and, upon determining that her 92.31 anonymity should be preserved, shall issue orders to the 92.32 parties, witnesses, and counsel and shall direct the sealing of 92.33 the record and exclusion of individuals from courtrooms or 92.34 hearing rooms to the extent necessary to safeguard her identity 92.35 from public disclosure. Each order must be accompanied by 92.36 specific written findings explaining why the anonymity of the 93.1 female should be preserved from public disclosure, why the order 93.2 is essential to that end, how the order is narrowly tailored to 93.3 serve that interest, and why no reasonable, less restrictive 93.4 alternative exists. In the absence of written consent of the 93.5 female upon whom an abortion has been performed or attempted, 93.6 anyone, other than a public official, who brings an action under 93.7 subdivision 1, shall do so under a pseudonym. This section may 93.8 not be construed to conceal the identity of the plaintiff or of 93.9 witnesses from the defendant. 93.10 Sec. 53. [145.4246] [SEVERABILITY.] 93.11 If any one or more provision, section, paragraph, sentence, 93.12 clause, phrase, or word of sections 145.4241 to 145.4246 or the 93.13 application thereof to any person or circumstance is found to be 93.14 unconstitutional, the same is hereby declared to be severable 93.15 and the balance of sections 145.4241 to 145.4246 shall remain 93.16 effective notwithstanding such unconstitutionality. The 93.17 legislature hereby declares that it would have passed sections 93.18 145.4241 to 145.4246, and each provision, section, paragraph, 93.19 sentence, clause, phrase, or word thereof, irrespective of the 93.20 fact that any one or more provision, section, paragraph, 93.21 sentence, clause, phrase, or word be declared unconstitutional. 93.22 Sec. 54. Minnesota Statutes 1998, section 145.924, is 93.23 amended to read: 93.24 145.924 [AIDS PREVENTION GRANTS.] 93.25 (a) The commissioner may award grants to boards of health 93.26 as defined in section 145A.02, subdivision 2, state agencies, 93.27 state councils, or nonprofit corporations to provide evaluation 93.28 and counseling services to populations at risk for acquiring 93.29 human immunodeficiency virus infection, including, but not 93.30 limited to, minorities, adolescents, intravenous drug users, and 93.31 homosexual men. 93.32 (b) The commissioner may award grants to agencies 93.33 experienced in providing services to communities of color, for 93.34 the design of innovative outreach and education programs for 93.35 targeted groups within the community who may be at risk of 93.36 acquiring the human immunodeficiency virus infection, including 94.1 intravenous drug users and their partners, adolescents, gay and 94.2 bisexual individuals and women. Grants shall be awarded on a 94.3 request for proposal basis and shall include funds for 94.4 administrative costs. Priority for grants shall be given to 94.5 agencies or organizations that have experience in providing 94.6 service to the particular community which the grantee proposes 94.7 to serve; that have policymakers representative of the targeted 94.8 population; that have experience in dealing with issues relating 94.9 to HIV/AIDS; and that have the capacity to deal effectively with 94.10 persons of differing sexual orientations. For purposes of this 94.11 paragraph, the "communities of color" are: the American-Indian 94.12 community; the Hispanic community; the African-American 94.13 community; and the Asian-Pacific community. 94.14 (c) All state grants for programs targeted to adolescents 94.15 shall be used exclusively to promote abstinence from sexual 94.16 activity outside of marriage. 94.17 Sec. 55. [145.9253] [FAMILY PLANNING FUNDS RECIPIENTS 94.18 RESTRICTED.] 94.19 (a) The commissioner of health may not allocate state funds 94.20 that are appropriated for the provision of family planning 94.21 services, or for which the provision of family planning services 94.22 is a permitted use of the funds, to any entity that is an 94.23 organization or affiliate of an organization which provides 94.24 abortions, promotes abortions, or directly refers for abortions. 94.25 (b) Nondirective counseling relating to a pregnancy does 94.26 not disqualify an entity from receiving an allocation of funds 94.27 referenced in paragraph (a) from the commissioner. 94.28 Sec. 56. Minnesota Statutes 1998, section 145.9255, 94.29 subdivision 1, is amended to read: 94.30 Subdivision 1. [ESTABLISHMENT.] The commissioner of 94.31 health, in consultation with a representative from Minnesota 94.32 planning, the commissioner of human services, and the 94.33 commissioner of children, families, and learning, shall develop 94.34 and implement the Minnesota education now and babies later (MN 94.35 ENABL) program, targeted to adolescents ages 12 to 14, with the 94.36 goal of reducing the incidence of adolescent pregnancy in the 95.1 state and promoting abstinence until marriage. The program must 95.2 provide a multifaceted, primary prevention, community health 95.3 promotion approach to educating and supporting adolescents in 95.4 the decision to postpone sexual involvement modeled after the 95.5 ENABL program in California. The commissioner of health shall 95.6 consult with the chief of the health education section of the 95.7 California department of health services for general guidance in 95.8 developing and implementing the program. 95.9 Sec. 57. Minnesota Statutes 1998, section 145.9255, 95.10 subdivision 4, is amended to read: 95.11 Subd. 4. [PROGRAM COMPONENTS.] The program must include 95.12 the following four major components: 95.13 (a) A community organization component in which the 95.14 community-based local contractors shall include: 95.15 (1) use of a postponing sexual involvement education 95.16 curriculum targeted to boys and girls ages 12 to 14 in schools 95.17 and/or community settings; 95.18 (2) planning and implementing community organization 95.19 strategies to convey and reinforce the MN ENABL message of 95.20 postponing sexual involvement, including activities promoting 95.21 awareness and involvement of parents and other primary 95.22 caregivers/significant adults, schools, and community; and 95.23 (3) development of local media linkages. 95.24 (b) A statewide, comprehensive media and public relations 95.25 campaign to promote changes in sexual attitudes and behaviors, 95.26 and reinforce the message ofpostponing adolescent sexual95.27involvementpromoting abstinence from sexual activity until 95.28 marriage. 95.29 The commissioner of health, in consultation with the 95.30 commissioner of children, families, and learning, shall contract 95.31 with the attorney general's office to develop and implement the 95.32 media and public relations campaign. In developing the 95.33 campaign, the attorney general's office shall coordinate and 95.34 consult with representatives from ethnic and local communities 95.35 to maximize effectiveness of the social marketing approach to 95.36 health promotion among the culturally diverse population of the 96.1 state. The development and implementation of the campaign is 96.2 subject to input and approval by the commissioner of health. 96.3 The local community-based contractors shall collaborate and 96.4 coordinate efforts with other community organizations and 96.5 interested persons to provide school and community-wide 96.6 promotional activities that support and reinforce the message of 96.7 the MN ENABL curriculum. 96.8 (c) An evaluation component which evaluates the process and 96.9 the impact of the program. 96.10 The "process evaluation" must provide information to the 96.11 state on the breadth and scope of the program. The evaluation 96.12 must identify program areas that might need modification and 96.13 identify local MN ENABL contractor strategies and procedures 96.14 which are particularly effective. Contractors must keep 96.15 complete records on the demographics of clients served, number 96.16 of direct education sessions delivered and other appropriate 96.17 statistics, and must document exactly how the program was 96.18 implemented. The commissioner may select contractor sites for 96.19 more in-depth case studies. 96.20 The "impact evaluation" must provide information to the 96.21 state on the impact of the different components of the MN ENABL 96.22 program and an assessment of the impact of the program on 96.23 adolescents' related sexual knowledge, attitudes, and 96.24 risk-taking behavior. 96.25 The commissioner shall compare the MN ENABL evaluation 96.26 information and data with similar evaluation data from other 96.27 states pursuing a similar adolescent pregnancy prevention 96.28 program modeled after ENABL and use the information to improve 96.29 MN ENABL and build on aspects of the program that have 96.30 demonstrated a delay in adolescent sexual involvement. 96.31 (d) A training component requiring the commissioner of 96.32 health, in consultation with the commissioner of children, 96.33 families, and learning, to provide comprehensive uniform 96.34 training to the local MN ENABL community-based local contractors 96.35 and the direct education program staff. 96.36 The local community-based contractors may use adolescent 97.1 leaders slightly older than the adolescents in the program to 97.2 impart the message to postpone sexual involvement provided: 97.3 (1) the contractor follows a protocol for adult 97.4 mentors/leaders and older adolescent leaders established by the 97.5 commissioner of health; 97.6 (2) the older adolescent leader is accompanied by an adult 97.7 leader; and 97.8 (3) the contractor uses the curriculum as directed and 97.9 required by the commissioner of the department of health to 97.10 implement this part of the program. The commissioner of health 97.11 shall provide technical assistance to community-based local 97.12 contractors. 97.13 Sec. 58. [145A.135] [TOBACCO USE PREVENTION GRANTS FOR 97.14 YOUTH.] 97.15 Subdivision 1. [COMPETITIVE GRANTS.] (a) The commissioner 97.16 of health, in consultation with the commissioner of children, 97.17 families, and learning, shall award grants to community health 97.18 boards for tobacco use prevention grants targeted at youth up to 97.19 age 18. The commissioner shall issue a request for proposals by 97.20 September 1, 1999, require proposals to be submitted by November 97.21 1, 1999, and award grants by December 1, 1999. The request for 97.22 proposals must describe the criteria for evaluation, outcome 97.23 measures, and evaluation methodology developed by the 97.24 commissioner under subdivision 4. 97.25 (b) The commissioner shall award grants only to community 97.26 health boards that: 97.27 (1) have developed, in collaboration with community action 97.28 agencies established under sections 119A.374 to 119A.376, a 97.29 four-year plan to reduce the rate of smoking and tobacco use 97.30 among youth up to age 18; and 97.31 (2) will implement the plan in collaboration with community 97.32 action agencies, schools, and other public or private entities 97.33 conducting similar or related initiatives, in a manner that does 97.34 not duplicate existing efforts. 97.35 Community health boards, in collaboration with their community 97.36 action agencies, may form partnerships and jointly apply for 98.1 grants. 98.2 (c) The commissioner shall award at least two but not more 98.3 than four competitive grants. Grants awarded by the 98.4 commissioner must target different areas of the state. At least 98.5 one grant must target a youth population at high risk of tobacco 98.6 use. 98.7 (d) Grants shall be awarded for two years and may be 98.8 renewed by the commissioner for an additional two years. A 98.9 grant recipient may request renewal of a grant by submitting to 98.10 the commissioner a written request for renewal, a description of 98.11 initiatives funded by the initial grant, and information on 98.12 progress toward achieving the outcome measures developed by the 98.13 commissioner under subdivision 4. The commissioner may renew a 98.14 grant only if the commissioner determines that the grant 98.15 recipient has made adequate progress toward implementing its 98.16 plan and achieving the outcome measures. 98.17 (e) A community health board may use grant funds received 98.18 under this subdivision for tobacco use prevention activities 98.19 targeted at youth only in those counties in the community health 98.20 board's community health service area that, as of the date on 98.21 which the community health board's application for a grant under 98.22 this subdivision is received by the commissioner, are in 98.23 compliance with section 461.12, subdivision 1. 98.24 Subd. 2. [GRANTS TO COMMUNITY HEALTH BOARDS.] (a) The 98.25 commissioner shall award grants to each community health board 98.26 that submits a proposal to establish and implement, in 98.27 collaboration with community action agencies established under 98.28 sections 119A.374 to 119A.376, tobacco use prevention 98.29 initiatives targeted at youth up to age 18. Proposals must be 98.30 developed in collaboration with the community action agencies. 98.31 The commissioner shall require community health boards to submit 98.32 proposals by November 1, 1999, and shall award grants by 98.33 December 15, 1999. The commissioner shall establish grant 98.34 levels using the formula in section 145A.13. 98.35 (b) Grants shall be awarded for two years and may be 98.36 renewed by the commissioner for an additional two years. A 99.1 community health board may request renewal of a grant by 99.2 submitting to the commissioner a written request for renewal, a 99.3 description of initiatives funded by the initial grant, and 99.4 information on progress toward achieving the outcome measures 99.5 developed by the commissioner under subdivision 4. The 99.6 commissioner may renew a grant only if the commissioner 99.7 determines that the community health board has made adequate 99.8 progress toward implementing its plan and achieving the outcome 99.9 measures. 99.10 (c) A community health board may use grant funds received 99.11 under this subdivision for tobacco use prevention activities 99.12 targeted at youth only in those counties in the community health 99.13 board's community health service area that, as of the date on 99.14 which the community health board's proposal under this 99.15 subdivision is received by the commissioner, are in compliance 99.16 with section 461.12, subdivision 1. 99.17 Subd. 3. [PROHIBITION ON MULTIPLE AWARDS.] A community 99.18 health board may apply for grants under both subdivisions 1 and 99.19 2, but may accept only one grant award. If a community health 99.20 board is awarded a grant under both subdivisions 1 and 2, the 99.21 board must return one of the grant awards to the commissioner. 99.22 If a grant awarded under subdivision 1 is returned, the 99.23 commissioner shall award this money to another applicant. If a 99.24 grant awarded under subdivision 2 is returned, the commissioner 99.25 shall distribute this money on a pro rata basis to all other 99.26 community health boards awarded that grant. 99.27 Subd. 4. [EVALUATION.] (a) The commissioner, in 99.28 consultation with the commissioner of children, families, and 99.29 learning, shall evaluate the effectiveness of the initiatives 99.30 funded by the grants provided under this section. Grant 99.31 recipients shall cooperate with the commissioner in the 99.32 evaluation and provide the commissioner with outcomes data and 99.33 other information necessary to conduct the evaluation. 99.34 (b) The commissioner, in consultation with the commissioner 99.35 of children, families, and learning, shall develop criteria for 99.36 evaluation, outcome measures, and an evaluation methodology by 100.1 September 1, 2000, and shall provide this information to grant 100.2 applicants. The commissioner shall include evaluation results 100.3 in the preliminary and final reports required under subdivision 100.4 5. 100.5 Subd. 5. [REPORTS.] The commissioner shall present a 100.6 preliminary report to the legislature by January 15, 2001, on 100.7 the grant program established by this section. The preliminary 100.8 report must include information on grant recipients and grant 100.9 awards, a summary of the evaluation criteria, outcome measures, 100.10 and evaluation methodology, and preliminary evaluation results. 100.11 The commissioner shall submit a final report to the legislature 100.12 by January 15, 2003. The final report must include information 100.13 on grant renewals, final evaluation results, and recommendations 100.14 for effective tobacco use prevention initiatives for youth. 100.15 Sec. 59. Minnesota Statutes 1998, section 148.5194, is 100.16 amended to read: 100.17 148.5194 [FEES.] 100.18 Subdivision 1. [FEE PRORATION.] The commissioner shall 100.19 prorate the registration fee for first time registrants 100.20 according to the number of months that have elapsed between the 100.21 date registration is issued and the date registration must be 100.22 renewed under section 148.5191, subdivision 4. 100.23 Subd. 2. [BIENNIAL REGISTRATION FEE.] The fee for initial 100.24 registration and biennial registration, temporary registration, 100.25 or renewal is$160$200. 100.26 Subd. 3. [BIENNIAL REGISTRATION FEE FOR DUAL REGISTRATION 100.27 AS A SPEECH-LANGUAGE PATHOLOGIST AND AUDIOLOGIST.] The fee for 100.28 initial registration and biennial registration, temporary 100.29 registration, or renewal is$160$200. 100.30 Subd. 3a. [SURCHARGE FEE.] Notwithstanding section 100.31 16A.1285, subdivision 2, for a period of four years following 100.32 the effective date of this subdivision, an applicant for 100.33 registration or registration renewal must pay a surcharge fee of 100.34 $25 in addition to any other fees due upon registration or 100.35 registration renewal. 100.36 Subd. 4. [PENALTY FEE FOR LATE RENEWALS.] The penalty fee 101.1 for late submission of a renewal application is$15$45. 101.2 Subd. 5. [NONREFUNDABLE FEES.] All fees are nonrefundable. 101.3 Sec. 60. [OUTREACH TO PHYSICIANS.] 101.4 The commissioner of health shall plan and conduct outreach 101.5 activities to educate physicians about the requirements of 101.6 Minnesota Statutes, sections 145.4201 to 145.4206. In 101.7 conducting outreach, the commissioner shall disseminate at least 101.8 two notices to physicians explaining the requirements of 101.9 Minnesota Statutes, sections 145.4201 to 145.4206, and may 101.10 conduct other outreach activities as the commissioner deems 101.11 necessary. The commissioner shall establish the timing and form 101.12 of the outreach activities required under this section, except 101.13 that outreach activities must be completed by July 1, 2000. 101.14 Sec. 61. [RULES REGULATING PUBLIC SWIMMING POOLS.] 101.15 (a) The commissioner of health shall amend Minnesota Rules, 101.16 part 4717.0250, subparts 7 and 8, to specify that the following 101.17 portable wading pools are private residential pools, and not 101.18 public pools, for purposes of public swimming pool regulation 101.19 under Minnesota Rules, chapter 4717: 101.20 (1) a portable wading pool operated at a family day care or 101.21 group family day care home that is licensed under Minnesota 101.22 Rules, chapter 9502; and 101.23 (2) a portable wading pool operated at a home at which 101.24 child care services are provided under Minnesota Statutes, 101.25 section 245A.03, subdivision 2, clause (2), or under Laws 1997, 101.26 chapter 248, section 46, including subsequent amendments. 101.27 (b) The commissioner shall amend Minnesota Rules, part 101.28 4717.0250, to define "portable wading pool" as a pool that is 101.29 entirely aboveground, is readily movable, has a maximum depth of 101.30 24 inches, and is used or designed to be used exclusively for 101.31 wading. 101.32 (c) The amendments required by this section may be done in 101.33 the manner specified in Minnesota Statutes, section 14.388, 101.34 under the authority of clause (3) of that section. 101.35 (Effective Date: Section 61 (Rules regulating public 101.36 swimming pools) is effective the day following final enactment.) 102.1 Sec. 62. [CASE STUDIES TO DEVELOP STANDARDS FOR AUTOPSY 102.2 PRACTICE IN SPECIAL CASES.] 102.3 Subdivision 1. [CASE STUDIES.] (a) If a professional 102.4 association representing coroners and medical examiners in 102.5 Minnesota accepts a grant from the commissioner of health for 102.6 purposes of this section, it must comply with the terms of this 102.7 section. A professional association representing coroners and 102.8 medical examiners in Minnesota may conduct a series of case 102.9 studies to examine cases in which performing autopsies are 102.10 controversial or in which autopsies are opposed by a decedent's 102.11 relative or friend based on the decedent's religious beliefs. 102.12 The cases to be examined may be cases in which it is not 102.13 immediately apparent that an autopsy is needed to determine the 102.14 person's cause of death but that, upon further investigation, 102.15 the coroner or medical examiner determines that an autopsy is 102.16 necessary to determine the cause of death and that the cause of 102.17 death must be determined. Using these case studies, the 102.18 professional association may develop: 102.19 (1) guidelines for coroners and medical examiners regarding 102.20 when to perform autopsies in controversial situations or in 102.21 situations in which autopsies are opposed based on a decedent's 102.22 religious beliefs; and 102.23 (2) special autopsy methods and procedures, if appropriate, 102.24 for autopsies in controversial situations or situations in which 102.25 autopsies are opposed based on a decedent's religious beliefs. 102.26 (b) The professional association may conduct 12 case 102.27 studies or more for the purposes in paragraph (a). Upon 102.28 completion of the case studies, the professional association may 102.29 disseminate the guidelines and procedures developed to all 102.30 coroners and medical examiners conducting autopsies in Minnesota. 102.31 Subd. 2. [REPORT TO LEGISLATURE.] The professional 102.32 association may report to the legislature by January 15, 2000, 102.33 on the results of the case studies, the guidelines developed for 102.34 autopsy practice, the special autopsy methods and procedures 102.35 developed, and efforts or plans to disseminate the guidelines 102.36 and procedures developed to coroners and medical examiners 103.1 conducting autopsies in Minnesota. 103.2 Subd. 3. [DATA PRIVACY.] All records held by the 103.3 professional association for purposes of completing the case 103.4 studies must be held in confidence. The guidelines for 103.5 autopsies and special autopsy methods and procedures that are 103.6 disseminated to coroners and medical examiners shall contain no 103.7 individually identifiable information. 103.8 Sec. 63. [ANNUAL FEE FOR SERVICE CONNECTIONS TO PUBLIC 103.9 WATER SUPPLIES.] 103.10 Notwithstanding Minnesota Statutes, section 144.3831, for 103.11 the fiscal year ending June 30, 2000 the commissioner of health 103.12 shall not assess an annual fee of $5.21 for every service 103.13 connection to a public water supply that is owned or operated by 103.14 a home rule charter city, a statutory city, a city of the first 103.15 class, or a town. 103.16 Sec. 64. [PILOT PROGRAM FOR PHARMACIST DRUG THERAPY 103.17 MANAGEMENT.] 103.18 The commissioner of human services shall award grants to 103.19 create and develop a pilot program to involve pharmacists in 103.20 coordinating drug therapy management services. Pharmacist drug 103.21 therapy management (1) does not include the initiation of a 103.22 prescription drug order by a pharmacist, and (2) does not permit 103.23 a pharmacist to make any unauthorized decisions about modifying 103.24 or substituting drug therapies under this pilot program. A 103.25 pharmacist participating in this pilot program must comply with 103.26 Minnesota Statutes, section 151.21, subdivision 1. The pilot 103.27 program shall reimburse licensed Minnesota pharmacists for 103.28 coordinating drug therapy management services to at-risk patient 103.29 populations, including persons with asthma, hypertension, high 103.30 cholesterol, diabetes, HIV, and tobacco addiction. The program 103.31 shall commence on February 1, 2000, and terminate on January 31, 103.32 2001. The commissioner of human services shall issue a request 103.33 for information (RFI) on the pilot program from the public by 103.34 August 1, 1999, and shall issue a request for proposal (RFP) to 103.35 award a grant to the appropriate bidder to implement the pilot 103.36 program by October 1, 1999. A report to the Minnesota 104.1 legislature is due by February 1, 2000. The commissioner of 104.2 human services shall issue a final report to the Minnesota 104.3 legislature by March 15, 2001. 104.4 Sec. 65. [AMENDMENT TO RULES.] 104.5 The commissioner of health shall amend Minnesota Rules, 104.6 chapter 4730 to conform with Minnesota Statutes, section 104.7 144.121, subdivision 8. The amendments required by this section 104.8 may be done in the manner specified in Minnesota Statutes, 104.9 section 14.388, under the authority of clause (3) of that 104.10 section. Minnesota Statutes, section 14.386, paragraph (b), 104.11 does not apply to amendments to rules made under this section. 104.12 (Effective Date: Section 65 (amendment to rules) is 104.13 effective the day following final enactment.) 104.14 Sec. 66. [REPEALER.] 104.15 (a) Minnesota Statutes 1998, sections 13.99, subdivision 104.16 19m; 62J.78; and 62J.79, are repealed. 104.17 (b) Minnesota Statutes 1998, sections 144.9507, subdivision 104.18 4; 144.9511; and 145.46, are repealed. 104.19 (c) Minnesota Statutes 1998, section 157.011, subdivision 104.20 2, is repealed. 104.21 (d) Minnesota Statutes 1998, sections 144.1475 and 144.148, 104.22 are repealed. 104.23 (e) Laws 1998, chapter 407, article 2, section 104, is 104.24 repealed. 104.25 (f) Minnesota Rules, part 4688.0030, is repealed. 104.26 Sec. 67. [EFFECTIVE DATE.] 104.27 When preparing the health and human services conference 104.28 committee report for adoption by the legislature, the revisor 104.29 shall combine all the bracketed effective date notations into 104.30 this effective date section. 104.31 ARTICLE 3 104.32 LONG-TERM CARE 104.33 Section 1. Minnesota Statutes 1998, section 144A.073, is 104.34 amended to read: 104.35 144A.073 [REVIEW OF PROPOSALS REQUIRING EXCEPTIONS TO THE 104.36 MORATORIUM OR RATE ADJUSTMENTS.] 105.1 Subdivision 1. [DEFINITIONS.] For purposes of this 105.2 section, the following terms have the meanings given them: 105.3 (a) "Conversion" means the relocation of a nursing home bed 105.4 from a nursing home to an attached hospital. 105.5 (b) "Relocation" means the movement of licensed nursing 105.6 home beds or certified boarding care beds as permitted under 105.7 subdivision 4, clause (3), and subdivision 5. 105.8 (c) "Renovation" means extensive remodeling of, or 105.9 construction of an addition to, a facility on an existing site 105.10 with a total cost exceeding ten percent of the appraised value 105.11 of the facility or $200,000, whichever is less. 105.12 (d) "Replacement" means the demolition, delicensure, 105.13 reconstruction, or construction of an addition to all or part of 105.14 an existing facility. 105.15 (e) "Upgrading" means a change in the level of licensure of 105.16 a bed from a boarding care bed to a nursing home bed in a 105.17 certified boarding care facility. 105.18 Subd. 2. [REQUEST FOR PROPOSALS.] At the authorization by 105.19 the legislature of additional medical assistance expenditures 105.20 for exceptions to the moratorium on nursing homes or for rate 105.21 adjustments, the interagency committee shall publish in the 105.22 State Register a request for proposals for nursing home projects 105.23 to be licensed or certified under section 144A.071, subdivision 105.24 4a, clause (c), and for nursing facility rate adjustments. The 105.25 public notice of this funding and the request for proposals must 105.26 specify how the approval criteria will be prioritized by the 105.27 advisory review panel, the interagency long-term care planning 105.28 committee, and the commissioner. The notice must describe the 105.29 information that must accompany a request and state that 105.30 proposals must be submitted to the interagency committee within 105.31 90 days of the date of publication. The notice must include the 105.32 amount of the legislative appropriation available for the 105.33 additional costs to the medical assistance program of projects 105.34 approved under this section. If no money is appropriated for a 105.35 year, the interagency committee shall publish a notice to that 105.36 effect, and no proposals shall be requested. If money is 106.1 appropriated, the interagency committee shall initiate the 106.2 application and review process described in this section at 106.3 least twice each biennium and up to four times each biennium, 106.4 according to dates established by rule. Authorized funds shall 106.5 be allocated proportionally to the number of processes. Funds 106.6 not encumbered by an earlier process within a biennium shall 106.7 carry forward to subsequent iterations of the process. 106.8 Authorization for expenditures does not carry forward into the 106.9 following biennium. To be considered for approval, a proposal 106.10 must include the following information: 106.11 (1) whether the request is for a rate adjustment, 106.12 renovation, replacement, upgrading, conversion, or relocation; 106.13 (2) a description of the problem the project is designed to 106.14 address; 106.15 (3) a description of the proposed project; 106.16 (4) an analysis of projected costs of the nursing facility 106.17 proposal, which are not required to exceed the cost threshold 106.18 referred to in section 144A.071, subdivision 1, to be considered 106.19 under this section, including costs of the rate adjustment; 106.20 initial construction and remodeling costs; site preparation 106.21 costs; financing costs, including the current estimated 106.22 long-term financing costs of the proposal, which consists of 106.23 estimates of the amount and sources of money, reserves if 106.24 required under the proposed funding mechanism, annual payments 106.25 schedule, interest rates, length of term, closing costs and 106.26 fees, insurance costs, and any completed marketing study or 106.27 underwriting review; and estimated operating costs during the 106.28 first two years after completion of the project; 106.29 (5) for proposals involving replacement of all or part of a 106.30 facility, the proposed location of the replacement facility and 106.31 an estimate of the cost of addressing the problem through 106.32 renovation; 106.33 (6) for proposals involving renovation, an estimate of the 106.34 cost of addressing the problem through replacement; 106.35 (7) the proposed timetable for commencing construction and 106.36 completing the project; 107.1 (8) a statement of any licensure or certification issues, 107.2 such as certification survey deficiencies; 107.3 (9) the proposed relocation plan for current residents if 107.4 beds are to be closed so that the department of human services 107.5 can estimate the total costs of a proposal;and107.6 (10) for proposals involving a rate adjustment, the 107.7 historical circumstances leading the facility to request a rate 107.8 adjustment, and supporting financial information demonstrating 107.9 that the financial viability and continued operation of the 107.10 facility would be threatened without the adjustment; and 107.11 (11) other information required by permanent rule of the 107.12 commissioner of health in accordance with subdivisions 4 and 8. 107.13 Subd. 3. [REVIEW AND APPROVAL OF PROPOSALS.] Within the 107.14 limits of money specifically appropriated to the medical 107.15 assistance program for this purpose, the interagency long-term 107.16 care planning committee may recommend that the commissioner of 107.17 health grant exceptions to the nursing home licensure or 107.18 certification moratorium for proposals that satisfy the 107.19 requirements of this section, or recommend that the commissioner 107.20 of human services provide facility rate adjustments. The 107.21 interagency committee shall appoint an advisory review panel 107.22 composed of representatives of consumers and providers to review 107.23 proposals and provide comments and recommendations to the 107.24 committee. The commissioners of human services and health shall 107.25 provide staff and technical assistance to the committee for the 107.26 review and analysis of proposals. The interagency committee 107.27 shall hold a public hearing before submitting recommendations to 107.28 the commissioner of health on project requests. The committee 107.29 shall submit recommendations within 150 days of the date of the 107.30 publication of the notice. The commissioner of health shall 107.31 approve or disapprove a project within 30 days after receiving 107.32 the committee's recommendations. The advisory review panel, the 107.33 committee, and the commissioner of health shall base their 107.34 recommendations, approvals, or disapprovals on a comparison and 107.35 ranking of proposals using only the criteria in subdivision 4 107.36 and in rules adopted by the commissioner. The cost to the 108.1 medical assistance program of the proposals approved must be 108.2 within the limits of the appropriations specifically made for 108.3 this purpose. Approval of a proposal expires 18 months after 108.4 approval by the commissioner of health unless the facility has 108.5 commenced construction as defined in section 144A.071, 108.6 subdivision 1a, paragraph (d). The committee's report to the 108.7 legislature, as required under section 144A.31, must include the 108.8 projects approved, the criteria used to recommend proposals for 108.9 approval, and the estimated costs of the projects, including the 108.10 costs of initial construction and remodeling and rate 108.11 adjustments, and the estimated operating costs during the first 108.12 two years after the project is completed. 108.13 Subd. 3b. [AMENDMENTS TO APPROVED PROJECTS.] (a) Nursing 108.14 facilities that have received approval on or after July 1, 1993, 108.15 for exceptions to the moratorium on nursing homes through the 108.16 process described in this section may request amendments to the 108.17 designs of the projects by writing the commissioner within 18 108.18 months of receiving approval. Applicants shall submit 108.19 supporting materials that demonstrate how the amended projects 108.20 meet the criteria described in paragraph (b). 108.21 (b) The commissioner shall approve requests for amendments 108.22 for projects approved on or after July 1, 1993, according to the 108.23 following criteria: 108.24 (1) the amended project designs must provide solutions to 108.25 all of the problems addressed by the original application that 108.26 are at least as effective as the original solutions; 108.27 (2) the amended project designs may not reduce the space in 108.28 each resident's living area or in the total amount of common 108.29 space devoted to resident and family uses by more than five 108.30 percent; 108.31 (3) the costs recognized for reimbursement of amended 108.32 project designs shall be the threshold amount of the original 108.33 proposal as identified according to section 144A.071, 108.34 subdivision 2, except under conditions described in clause (4); 108.35 and 108.36 (4) total costs up to ten percent greater than the cost 109.1 identified in clause (3) may be recognized for reimbursement if 109.2 the proposer can document that one of the following 109.3 circumstances is true: 109.4 (i) changes are needed due to a natural disaster; 109.5 (ii) conditions that affect the safety or durability of the 109.6 project that could not have reasonably been known prior to 109.7 approval are discovered; 109.8 (iii) state or federal law require changes in project 109.9 design; or 109.10 (iv) documentable circumstances occur that are beyond the 109.11 control of the owner and require changes in the design. 109.12 (c) Approval of a request for an amendment does not alter 109.13 the expiration of approval of the project according to 109.14 subdivision 3. 109.15 Subd. 3c. [COST NEUTRAL RELOCATION PROJECTS.] (a) 109.16 Notwithstanding subdivision 3, the interagency committee may at 109.17 any time accept proposals, or amendments to proposals previously 109.18 approved under this section, for relocations that are cost 109.19 neutral with respect to state costs as defined in section 109.20 144A.071, subdivision 5a. The committee shall review these 109.21 applications and make recommendations to the commissioner within 109.22 90 days. The committee must evaluate proposals according to 109.23 subdivision 4, clauses (1), (2), and (3), and other criteria 109.24 established in rule. The commissioner shall approve or 109.25 disapprove a project within 30 days of receiving the committee's 109.26 recommendation. Proposals and amendments approved under this 109.27 subdivision are not subject to the six-mile limit in subdivision 109.28 5, paragraph (e). 109.29 (b) For the purposes of paragraph (a), cost neutrality 109.30 shall be measured over the first three 12-month periods of 109.31 operation after completion of the project. 109.32 Subd. 4. [CRITERIA FOR REVIEW.] The following criteria 109.33 shall be used in a consistent manner to compare, evaluate, and 109.34 rank all proposals submitted. Except for the criteria specified 109.35 inclauseclauses (3) and (9), the application of criteria 109.36 listed under this subdivision shall not reflect any distinction 110.1 based on the geographic location of the proposed project: 110.2 (1) the extent to which the proposal furthers state 110.3 long-term care goals, including the goals stated in section 110.4 144A.31, and including the goal of enhancing the availability 110.5 and use of alternative care services and the goal of reducing 110.6 the number of long-term care resident rooms with more than two 110.7 beds; 110.8 (2) the proposal's long-term effects on state costs 110.9 including the cost estimate of the project according to section 110.10 144A.071, subdivision 5a; 110.11 (3) the extent to which the proposal promotes equitable 110.12 access to long-term care services in nursing homes through 110.13 redistribution of the nursing home bed supply, as measured by 110.14 the number of beds relative to the population 85 or older, 110.15 projected to the year 2000 by the state demographer, and 110.16 according to items (i) to (iv): 110.17 (i) reduce beds in counties where the supply is high, 110.18 relative to the statewide mean, and increase beds in counties 110.19 where the supply is low, relative to the statewide mean; 110.20 (ii) adjust the bed supply so as to create the greatest 110.21 benefits in improving the distribution of beds; 110.22 (iii) adjust the existing bed supply in counties so that 110.23 the bed supply in a county moves toward the statewide mean; and 110.24 (iv) adjust the existing bed supply so that the 110.25 distribution of beds as projected for the year 2020 would be 110.26 consistent with projected need, based on the methodology 110.27 outlined in the interagency long-term care committee's 1993 110.28 nursing home bed distribution study; 110.29 (4) the extent to which the project improves conditions 110.30 that affect the health or safety of residents, such as narrow 110.31 corridors, narrow door frames, unenclosed fire exits, and wood 110.32 frame construction, and similar provisions contained in fire and 110.33 life safety codes and licensure and certification rules; 110.34 (5) the extent to which the project improves conditions 110.35 that affect the comfort or quality of life of residents in a 110.36 facility or the ability of the facility to provide efficient 111.1 care, such as a relatively high number of residents in a room; 111.2 inadequate lighting or ventilation; poor access to bathing or 111.3 toilet facilities; a lack of available ancillary space for 111.4 dining rooms, day rooms, or rooms used for other activities; 111.5 problems relating to heating, cooling, or energy efficiency; 111.6 inefficient location of nursing stations; narrow corridors; or 111.7 other provisions contained in the licensure and certification 111.8 rules; 111.9 (6) the extent to which the applicant demonstrates the 111.10 delivery of quality care, as defined in state and federal 111.11 statutes and rules, to residents as evidenced by the two most 111.12 recent state agency certification surveys and the applicants' 111.13 response to those surveys; 111.14 (7) the extent to which the project removes the need for 111.15 waivers or variances previously granted by either the licensing 111.16 agency, certifying agency, fire marshal, or local government 111.17 entity;and111.18 (8) other factors that may be developed in permanent rule 111.19 by the commissioner of health that evaluate and assess how the 111.20 proposed project will further promote or protect the health, 111.21 safety, comfort, treatment, or well-being of the facility's 111.22 residents; and 111.23 (9) for rate adjustment proposals, the extent to which the 111.24 financial viability and continued operation of the facility 111.25 would be threatened without a rate adjustment. 111.26 Subd. 5. [REPLACEMENT RESTRICTIONS.] (a) Proposals 111.27 submitted or approved under this section involving replacement 111.28 must provide for replacement of the facility on the existing 111.29 site except as allowed in this subdivision. 111.30 (b) Facilities located in a metropolitan statistical area 111.31 other than the Minneapolis-St. Paul seven-county metropolitan 111.32 area may relocate to a site within the same census tract or a 111.33 contiguous census tract. 111.34 (c) Facilities located in the Minneapolis-St. Paul 111.35 seven-county metropolitan area may relocate to a site within the 111.36 same or contiguous health planning area as adopted in March 1982 112.1 by the metropolitan council. 112.2 (d) Facilities located outside a metropolitan statistical 112.3 area may relocate to a site within the same city or township, or 112.4 within a contiguous township. 112.5 (e) A facility relocated to a different site under 112.6 paragraph (b), (c), or (d) must not be relocated to a site more 112.7 than six miles from the existing site. 112.8 (f) The relocation of part of an existing first facility to 112.9 a second location, under paragraphs (d) and (e), may include the 112.10 relocation to the second location of up to four beds from part 112.11 of an existing third facility located in a township contiguous 112.12 to the location of the first facility. The six-mile limit in 112.13 paragraph (e) does not apply to this relocation from the third 112.14 facility. 112.15 (g) For proposals approved on January 13, 1994, under this 112.16 section involving the replacement of 102 licensed and certified 112.17 beds, the relocation of the existing first facility to the 112.18 second and third locations under paragraphs (d) and (e) may 112.19 include the relocation of up to 50 percent of the beds of the 112.20 existing first facility to each of the locations. The six-mile 112.21 limit in paragraph (e) does not apply to this relocation to the 112.22 third location. Notwithstanding subdivision 3, construction of 112.23 this project may be commenced any time prior to January 1, 1996. 112.24 Subd. 6. [CONVERSION RESTRICTIONS.] Proposals submitted or 112.25 approved under this section involving conversion must satisfy 112.26 the following conditions: 112.27 (a) Conversion is limited to a total of five beds. 112.28 (b) An equivalent number of hospital beds must be 112.29 delicensed. 112.30 (c) The average occupancy rate in the existing nursing home 112.31 beds must be greater than 96 percent according to the most 112.32 recent annual statistical report of the department of health. 112.33 (d) The cost of remodeling the hospital rooms to meet 112.34 current nursing home construction standards must not exceed ten 112.35 percent of the appraised value of the nursing home or $200,000, 112.36 whichever is less. 113.1 (e) The conversion must not result in an increase in 113.2 operating costs. 113.3 Subd. 7. [UPGRADING RESTRICTIONS.] Proposals submitted or 113.4 approved under this section involving upgrading must satisfy the 113.5 following conditions: 113.6 (a) The facility must meet minimum nursing home care 113.7 standards. 113.8 (b) If beds are upgraded to nursing home beds, the number 113.9 of boarding care beds in a facility must not increase in the 113.10 future. 113.11 (c) The average occupancy rate in the existing nursing home 113.12 beds in an attached facility must be greater than 96 percent 113.13 according to the most recent annual statistical report of the 113.14 department of health. 113.15 Subd. 8. [RULEMAKING.] The commissioner of health shall 113.16 adopt rules to implement this section. The permanent rules must 113.17 be in accordance with and implement only the criteria listed in 113.18 this section. The authority to adopt permanent rules continues 113.19 until July 1, 1996. 113.20 Subd. 9. [BUDGET REQUEST.] The commissioner of human 113.21 services, in consultation with the commissioner of finance, 113.22 shall include in each biennial budget request a line item for 113.23 the nursing home moratorium exception and rate adjustment 113.24 process. If the commissioner of human services does not request 113.25 funding for this item, the commissioner of human services must 113.26 justify the decision in the budget pages. 113.27 Sec. 2. Minnesota Statutes 1998, section 144A.10, is 113.28 amended by adding a subdivision to read: 113.29 Subd. 1a. [TRAINING AND EDUCATION FOR NURSING FACILITY 113.30 PROVIDERS.] The commissioner of health must establish and 113.31 implement a prescribed process and program for providing 113.32 training and education to providers licensed by the department 113.33 of health, either by itself or in conjunction with the industry 113.34 trade associations, before using any new regulatory guideline, 113.35 regulation, interpretation, program letter or memorandum, or any 113.36 other materials used in surveyor training to survey licensed 114.1 providers. The process should include but is not limited to the 114.2 following key components: 114.3 (1) facilitate the implementation of immediate revisions to 114.4 any course curriculum for nursing assistants which reflect any 114.5 new standard of care practice that has been adopted or 114.6 referenced by the health department concerning the issue in 114.7 question; 114.8 (2) conduct training of long-term care providers and health 114.9 department survey inspectors either jointly or during the same 114.10 time frame on the department's new expectations; and 114.11 (3) within available resources the commissioner shall 114.12 cooperate in the development of clinical standards, work with 114.13 vendors of supplies and services regarding hazards, and identify 114.14 research of interest to the long-term care community. 114.15 Sec. 3. Minnesota Statutes 1998, section 144A.10, is 114.16 amended by adding a subdivision to read: 114.17 Subd. 11. [DATA ON FOLLOW-UP SURVEYS.] (a) If requested 114.18 and not prohibited by federal law, the commissioner shall make 114.19 available to the nursing home associations and the public 114.20 photocopies of statements of deficiencies and related letters 114.21 from the department pertaining to federal certification 114.22 surveys. The commissioner may charge for the actual cost of 114.23 reproduction of these documents. 114.24 (b) The commissioner shall also make available on a 114.25 quarterly basis aggregate data for all statements of 114.26 deficiencies issued after federal certification follow-up 114.27 surveys related to surveys that were conducted in the quarter 114.28 prior to the immediately preceding quarter. The data shall 114.29 include the number of facilities with deficiencies, the total 114.30 number of deficiencies, the number of facilities that did not 114.31 have any deficiencies, the number of facilities for which a 114.32 resurvey or follow-up survey was not performed, and the average 114.33 number of days between the follow-up or resurvey and the exit 114.34 date of the preceding survey. 114.35 (Effective Date: Section 3 (144A.10, subdivision 11) is 114.36 effective the day following final enactment.) 115.1 Sec. 4. Minnesota Statutes 1998, section 144A.10, is 115.2 amended by adding a subdivision to read: 115.3 Subd. 12. [NURSE AIDE TRAINING WAIVERS.] Because any 115.4 disruption or delay in the training and registration of nurses 115.5 aides may reduce access to care in certified facilities, the 115.6 commissioner shall grant all possible waivers for the 115.7 continuation of an approved nurse aide training and competency 115.8 evaluation program or nurse aide training program or competency 115.9 evaluation program conducted by or on the site of any certified 115.10 nursing facility or skilled nursing facility that would 115.11 otherwise lose approval for the program or programs. The 115.12 commissioner shall take into consideration the distance to other 115.13 training programs, the frequency of other training programs, and 115.14 the impact that the loss of the onsite training will have on the 115.15 nursing facility's ability to recruit and train nurse aides. 115.16 (Effective Date: Section 4 (144A.10, subdivision 12) is 115.17 effective the day following final enactment.) 115.18 Sec. 5. Minnesota Statutes 1998, section 144A.10, is 115.19 amended by adding a subdivision to read: 115.20 Subd. 13. [IMMEDIATE JEOPARDY.] When conducting survey 115.21 certification and enforcement activities related to regular, 115.22 expanded, or extended surveys under Code of Federal Regulations, 115.23 title 42, part 488, the commissioner may not issue a finding of 115.24 immediate jeopardy unless the specific event or omission that 115.25 constitutes the violation of the requirements of participation 115.26 poses an imminent risk of life-threatening or serious injury to 115.27 a resident. The commissioner may not issue any findings of 115.28 immediate jeopardy after the conclusion of a regular, expanded, 115.29 or extended survey unless the survey team identified the 115.30 deficient practice or practices that constitute immediate 115.31 jeopardy and the residents at risk prior to the close of the 115.32 exit conference. 115.33 (Effective Date: Section 5 (144A.10, subdivision 13) is 115.34 effective the day following final enactment.) 115.35 Sec. 6. Minnesota Statutes 1998, section 144A.10, is 115.36 amended by adding a subdivision to read: 116.1 Subd. 14. [INFORMAL DISPUTE RESOLUTION.] The commissioner 116.2 shall respond in writing to a request from a nursing facility 116.3 certified under the federal Medicare and Medicaid programs for 116.4 an informal dispute resolution, within 30 days of the exit date 116.5 of the facility's survey. The commissioner's response shall 116.6 identify the commissioner's decision regarding the continuation 116.7 of each deficiency citation challenged by the nursing facility, 116.8 as well as a statement of any changes in findings, level of 116.9 severity or scope, and proposed remedies or sanctions for each 116.10 deficiency citation. 116.11 (Effective Date: Section 6 (144A.10, subdivision 14) is 116.12 effective the day following final enactment.) 116.13 Sec. 7. [144A.102] [USE OF CIVIL MONEY PENALTIES; WAIVER 116.14 FROM STATE AND FEDERAL RULES AND REGULATIONS.] 116.15 By January 2000, the commissioner of health shall work with 116.16 providers to examine state and federal rules and regulations 116.17 governing the provision of care in licensed nursing facilities 116.18 and apply for federal waivers and identify necessary changes in 116.19 state law to: 116.20 (1) allow the use of civil money penalties imposed upon 116.21 nursing facilities to abate any deficiencies identified in a 116.22 nursing facility's plan of correction; and 116.23 (2) stop the accrual of any fine imposed by the health 116.24 department when a follow-up inspection survey is not conducted 116.25 by the department within the regulatory deadline. 116.26 (Effective Date: Section 7 (144A.102) is effective the day 116.27 following final enactment.) 116.28 Sec. 8. Minnesota Statutes 1998, section 144D.01, 116.29 subdivision 4, is amended to read: 116.30 Subd. 4. [HOUSING WITH SERVICES ESTABLISHMENT OR 116.31 ESTABLISHMENT.] "Housing with services establishment" or 116.32 "establishment" means an establishment providing sleeping 116.33 accommodations to one or more adult residents, at least 80 116.34 percent of which are 55 years of age or older, and offering or 116.35 providing, for a fee, one or more regularly scheduled 116.36 health-related services or two or more regularly scheduled 117.1 supportive services, whether offered or provided directly by the 117.2 establishment or by another entity arranged for by the 117.3 establishment. 117.4 Housing with services establishment does not include: 117.5 (1) a nursing home licensed under chapter 144A; 117.6 (2) a hospital, certified boarding care home, or supervised 117.7 living facility licensed under sections 144.50 to 144.56; 117.8 (3) a board and lodging establishment licensed under 117.9 chapter 157 and Minnesota Rules, parts 9520.0500 to 9520.0670, 117.10 9525.0215 to 9525.0355, 9525.0500 to 9525.0660, or 9530.4100 to 117.11 9530.4450, or under chapter 245B; 117.12 (4) a board and lodging establishment which serves as a 117.13 shelter for battered women or other similar purpose; 117.14 (5) a family adult foster care home licensed by the 117.15 department of human services; 117.16 (6) private homes in which the residents are related by 117.17 kinship, law, or affinity with the providers of services; 117.18 (7) residential settings for persons with mental 117.19 retardation or related conditions in which the services are 117.20 licensed under Minnesota Rules, parts 9525.2100 to 9525.2140, or 117.21 applicable successor rules or laws; 117.22 (8) a home-sharing arrangement such as when an elderly or 117.23 disabled person or single-parent family makes lodging in a 117.24 private residence available to another person in exchange for 117.25 services or rent, or both; 117.26 (9) a duly organized condominium, cooperative, common 117.27 interest community, or owners' association of the foregoing 117.28 where at least 80 percent of the units that comprise the 117.29 condominium, cooperative, or common interest community are 117.30 occupied by individuals who are the owners, members, or 117.31 shareholders of the units; or 117.32 (10) services for persons with developmental disabilities 117.33 that are provided under a license according to Minnesota Rules, 117.34 parts 9525.2000 to 9525.2140 in effect until January 1, 1998, or 117.35 under chapter 245B. 117.36 Sec. 9. Minnesota Statutes 1998, section 252.28, 118.1 subdivision 1, is amended to read: 118.2 Subdivision 1. [DETERMINATIONS; REDETERMINATIONS.] In 118.3 conjunction with the appropriate county boards, the commissioner 118.4 of human services shall determine, and shall redetermine at 118.5 least every four years, the need, location, size, and program of 118.6 public and privateresidential services andday training and 118.7 habilitation services for persons with mental retardation or 118.8 related conditions. This subdivision does not apply to 118.9 semi-independent living services and residential-based 118.10 habilitation services provided to four or fewer persons at a 118.11 single site funded as home and community-based services. A 118.12 determination of need shall not be required for a change in 118.13 ownership. 118.14 Sec. 10. [252.282] [ICF/MR LOCAL SYSTEM NEEDS PLANNING.] 118.15 Subdivision 1. [HOST COUNTY RESPONSIBILITY.] (a) For 118.16 purposes of this section, "local system needs planning" means 118.17 the determination of need for ICF/MR services by program type, 118.18 location, demographics, and size of licensed services for 118.19 persons with developmental disabilities or related conditions. 118.20 (b) This section does not apply to semi-independent living 118.21 services and residential-based habilitation services funded as 118.22 home and community-based services. 118.23 (c) In collaboration with the commissioner and ICF/MR 118.24 providers, counties shall complete a local system needs planning 118.25 process for each ICF/MR facility. Counties shall evaluate the 118.26 preferences and needs of persons with developmental disabilities 118.27 to determine resource demands through a systematic assessment 118.28 and planning process by May 15, 2000, and by July 1 every two 118.29 years thereafter beginning in 2001. 118.30 (d) A local system needs planning process shall be 118.31 undertaken more frequently when the needs or preferences of 118.32 consumers change significantly to require reformation of the 118.33 resources available to persons with developmental disabilities. 118.34 (e) A local system needs plan shall be amended anytime 118.35 recommendations for modifications to existing ICF/MR services 118.36 are made to the host county, including recommendations for: 119.1 (1) closure; 119.2 (2) relocation of services; 119.3 (3) downsizing; 119.4 (4) rate adjustments exceeding 90 days duration to address 119.5 access; or 119.6 (5) modification of existing services for which a change in 119.7 the framework of service delivery is advocated. 119.8 Subd. 2. [CONSUMER NEEDS AND PREFERENCES.] In conducting 119.9 the local system needs planning process, the host county must 119.10 use information from the individual service plans of persons for 119.11 whom the county is financially responsible and of persons from 119.12 other counties for whom the county has agreed to be the host 119.13 county. The determination of services and supports offered 119.14 within the county shall be based on the preferences and needs of 119.15 consumers. The host county shall also consider the community 119.16 social services plan, waiting lists, and other sources that 119.17 identify unmet needs for services. A review of ICF/MR facility 119.18 licensing and certification surveys, substantiated maltreatment 119.19 reports, and established service standards shall be employed to 119.20 assess the performance of providers and shall be considered in 119.21 the county's recommendations. Consumer satisfaction surveys may 119.22 also be considered in this process. 119.23 Subd. 3. [RECOMMENDATIONS.] (a) Upon completion of the 119.24 local system needs planning assessment, the host county shall 119.25 make recommendations by May 15, 2000, and by July 1 every two 119.26 years thereafter beginning in 2001. If no change is 119.27 recommended, a copy of the assessment along with corresponding 119.28 documentation shall be provided to the commissioner by July 1 119.29 prior to the contract year. 119.30 (b) Except as provided in section 252.292, subdivision 4, 119.31 recommendations regarding closures, relocations, or downsizings 119.32 that include a rate increase and recommendations regarding rate 119.33 adjustments exceeding 90 days shall be submitted to the 119.34 statewide advisory committee for review and determination, along 119.35 with the assessment, plan, and corresponding budget. 119.36 (c) Recommendations for closures, relocations, and 120.1 downsizings that do not include a rate increase and for 120.2 modification of existing services for which a change in the 120.3 framework of service delivery is necessary shall be provided to 120.4 the commissioner by July 1 prior to the contract year or at 120.5 least 90 days prior to the anticipated change, along with the 120.6 assessment and corresponding documentation. 120.7 Subd. 4. [THE STATEWIDE ADVISORY COMMITTEE.] (a) The 120.8 commissioner shall appoint a five-member statewide advisory 120.9 committee. The advisory committee shall include representatives 120.10 of providers and counties and the commissioner or the 120.11 commissioner's designee. 120.12 (b) The criteria for ranking proposals, already developed 120.13 in 1997 by a task force authorized by the legislature, shall be 120.14 adopted and incorporated into the decision-making process. 120.15 Specific guidelines, including time frame for submission of 120.16 requests, shall be established and announced through the State 120.17 Register, and all requests shall be considered in comparison to 120.18 each other and the ranking criteria. The advisory committee 120.19 shall review and recommend requests for facility rate 120.20 adjustments to address closures, downsizing, relocation, or 120.21 access needs within the county and shall forward recommendations 120.22 and documentation to the commissioner. The committee shall 120.23 ensure that: 120.24 (1) applications are in compliance with applicable state 120.25 and federal law and with the state plan; and 120.26 (2) cost projections for the proposed service are within 120.27 fiscal limitations. 120.28 (c) The advisory committee shall review proposals and 120.29 submit recommendations to the commissioner within 60 days 120.30 following the published deadline for submission under 120.31 subdivision 5. 120.32 Subd. 5. [RESPONSIBILITIES OF THE COMMISSIONER.] (a) In 120.33 collaboration with counties, providers, and the statewide 120.34 advisory committee, the commissioner shall ensure that services 120.35 recognize the preferences and needs of persons with 120.36 developmental disabilities and related conditions through a 121.1 recurring systemic review and assessment of ICF/MR facilities 121.2 within the state. 121.3 (b) The commissioner shall publish a notice in the state 121.4 register twice each calendar year to announce the opportunity 121.5 for counties or providers to submit requests for rate 121.6 adjustments associated with plans for downsizing, relocation, 121.7 and closure of ICF/MR facilities. 121.8 (c) The commissioner shall designate funding parameters to 121.9 counties and to the statewide advisory committee for the overall 121.10 implementation of system needs within the fiscal resources 121.11 allocated by the legislature. 121.12 (d) The commissioner shall contract with ICF/MR providers. 121.13 The initial contracts shall cover the period from October 1, 121.14 2000, to December 31, 2001. Subsequent contracts shall be for 121.15 two-year periods beginning January 1, 2002. 121.16 Sec. 11. Minnesota Statutes 1998, section 256B.0911, 121.17 subdivision 6, is amended to read: 121.18 Subd. 6. [PAYMENT FOR PREADMISSION SCREENING.] (a) The 121.19 total screening payment for each county must be paid monthly by 121.20 certified nursing facilities in the county. The monthly amount 121.21 to be paid by each nursing facility for each fiscal year must be 121.22 determined by dividing the county's annual allocation for 121.23 screenings by 12 to determine the monthly payment and allocating 121.24 the monthly payment to each nursing facility based on the number 121.25 of licensed beds in the nursing facility. 121.26 (b) The commissioner shall include the total annual payment 121.27 for screening for each nursing facility according to section 121.28 256B.431, subdivision 2b, paragraph (g), or 256B.435. 121.29 (c) Payments for screening activities are available to the 121.30 county or counties to cover staff salaries and expenses to 121.31 provide the screening function. The lead agency shall employ, 121.32 or contract with other agencies to employ, within the limits of 121.33 available funding, sufficient personnel to conduct the 121.34 preadmission screening activity while meeting the state's 121.35 long-term care outcomes and objectives as defined in section 121.36 256B.0917, subdivision 1. The local agency shall be accountable 122.1 for meeting local objectives as approved by the commissioner in 122.2 the CSSA biennial plan. 122.3(c)(d) Notwithstanding section 256B.0641, overpayments 122.4 attributable to payment of the screening costs under the medical 122.5 assistance program may not be recovered from a facility. 122.6(d)(e) The commissioner of human services shall amend the 122.7 Minnesota medical assistance plan to include reimbursement for 122.8 the local screening teams. 122.9 Sec. 12. Minnesota Statutes 1998, section 256B.0913, 122.10 subdivision 5, is amended to read: 122.11 Subd. 5. [SERVICES COVERED UNDER ALTERNATIVE CARE.] (a) 122.12 Alternative care funding may be used for payment of costs of: 122.13 (1) adult foster care; 122.14 (2) adult day care; 122.15 (3) home health aide; 122.16 (4) homemaker services; 122.17 (5) personal care; 122.18 (6) case management; 122.19 (7) respite care; 122.20 (8) assisted living; 122.21 (9) residential care services; 122.22 (10) care-related supplies and equipment; 122.23 (11) meals delivered to the home; 122.24 (12) transportation; 122.25 (13) skilled nursing; 122.26 (14) chore services; 122.27 (15) companion services; 122.28 (16) nutrition services; 122.29 (17) training for direct informal caregivers;and122.30 (18) telemedicine devices to monitor recipients in their 122.31 own homes as an alternative to hospital care, nursing home care, 122.32 or home visits.; and 122.33 (19) other services including direct cash payments to 122.34 clients, approved by the county agency, subject to the 122.35 provisions of paragraph (m). Total annual payments for other 122.36 services for all clients within a county may not exceed either 123.1 ten percent of that county's annual alternative care program 123.2 base allocation or $5,000, whichever is greater. In no case 123.3 shall this amount exceed the county's total annual alternative 123.4 care program base allocation. 123.5 (b) The county agency must ensure that the funds are used 123.6 only to supplement and not supplant services available through 123.7 other public assistance or services programs. 123.8 (c) Unless specified in statute, the service standards for 123.9 alternative care services shall be the same as the service 123.10 standards defined in the elderly waiver. Except for the county 123.11 agencies' approval of direct cash payments to clients, persons 123.12 or agencies must be employed by or under a contract with the 123.13 county agency or the public health nursing agency of the local 123.14 board of health in order to receive funding under the 123.15 alternative care program. 123.16 (d) The adult foster care rate shall be considered a 123.17 difficulty of care payment and shall not include room and 123.18 board. The adult foster care daily rate shall be negotiated 123.19 between the county agency and the foster care provider. The 123.20 rate established under this section shall not exceed 75 percent 123.21 of the state average monthly nursing home payment for the case 123.22 mix classification to which the individual receiving foster care 123.23 is assigned, and it must allow for other alternative care 123.24 services to be authorized by the case manager. 123.25 (e) Personal care services may be provided by a personal 123.26 care provider organization. A county agency may contract with a 123.27 relative of the client to provide personal care services, but 123.28 must ensure nursing supervision. Covered personal care services 123.29 defined in section 256B.0627, subdivision 4, must meet 123.30 applicable standards in Minnesota Rules, part 9505.0335. 123.31 (f) A county may use alternative care funds to purchase 123.32 medical supplies and equipment without prior approval from the 123.33 commissioner when: (1) there is no other funding source; (2) 123.34 the supplies and equipment are specified in the individual's 123.35 care plan as medically necessary to enable the individual to 123.36 remain in the community according to the criteria in Minnesota 124.1 Rules, part 9505.0210, item A; and (3) the supplies and 124.2 equipment represent an effective and appropriate use of 124.3 alternative care funds. A county may use alternative care funds 124.4 to purchase supplies and equipment from a non-Medicaid certified 124.5 vendor if the cost for the items is less than that of a Medicaid 124.6 vendor. A county is not required to contract with a provider of 124.7 supplies and equipment if the monthly cost of the supplies and 124.8 equipment is less than $250. 124.9 (g) For purposes of this section, residential care services 124.10 are services which are provided to individuals living in 124.11 residential care homes. Residential care homes are currently 124.12 licensed as board and lodging establishments and are registered 124.13 with the department of health as providing special services. 124.14 Residential care services are defined as "supportive services" 124.15 and "health-related services." "Supportive services" means the 124.16 provision of up to 24-hour supervision and oversight. 124.17 Supportive services includes: (1) transportation, when provided 124.18 by the residential care center only; (2) socialization, when 124.19 socialization is part of the plan of care, has specific goals 124.20 and outcomes established, and is not diversional or recreational 124.21 in nature; (3) assisting clients in setting up meetings and 124.22 appointments; (4) assisting clients in setting up medical and 124.23 social services; (5) providing assistance with personal laundry, 124.24 such as carrying the client's laundry to the laundry room. 124.25 Assistance with personal laundry does not include any laundry, 124.26 such as bed linen, that is included in the room and board rate. 124.27 Health-related services are limited to minimal assistance with 124.28 dressing, grooming, and bathing and providing reminders to 124.29 residents to take medications that are self-administered or 124.30 providing storage for medications, if requested. Individuals 124.31 receiving residential care services cannot receive both personal 124.32 care services and residential care services. 124.33 (h) For the purposes of this section, "assisted living" 124.34 refers to supportive services provided by a single vendor to 124.35 clients who reside in the same apartment building of three or 124.36 more units which are not subject to registration under chapter 125.1 144D. Assisted living services are defined as up to 24-hour 125.2 supervision, and oversight, supportive services as defined in 125.3 clause (1), individualized home care aide tasks as defined in 125.4 clause (2), and individualized home management tasks as defined 125.5 in clause (3) provided to residents of a residential center 125.6 living in their units or apartments with a full kitchen and 125.7 bathroom. A full kitchen includes a stove, oven, refrigerator, 125.8 food preparation counter space, and a kitchen utensil storage 125.9 compartment. Assisted living services must be provided by the 125.10 management of the residential center or by providers under 125.11 contract with the management or with the county. 125.12 (1) Supportive services include: 125.13 (i) socialization, when socialization is part of the plan 125.14 of care, has specific goals and outcomes established, and is not 125.15 diversional or recreational in nature; 125.16 (ii) assisting clients in setting up meetings and 125.17 appointments; and 125.18 (iii) providing transportation, when provided by the 125.19 residential center only. 125.20 Individuals receiving assisted living services will not 125.21 receive both assisted living services and homemaking or personal 125.22 care services. Individualized means services are chosen and 125.23 designed specifically for each resident's needs, rather than 125.24 provided or offered to all residents regardless of their 125.25 illnesses, disabilities, or physical conditions. 125.26 (2) Home care aide tasks means: 125.27 (i) preparing modified diets, such as diabetic or low 125.28 sodium diets; 125.29 (ii) reminding residents to take regularly scheduled 125.30 medications or to perform exercises; 125.31 (iii) household chores in the presence of technically 125.32 sophisticated medical equipment or episodes of acute illness or 125.33 infectious disease; 125.34 (iv) household chores when the resident's care requires the 125.35 prevention of exposure to infectious disease or containment of 125.36 infectious disease; and 126.1 (v) assisting with dressing, oral hygiene, hair care, 126.2 grooming, and bathing, if the resident is ambulatory, and if the 126.3 resident has no serious acute illness or infectious disease. 126.4 Oral hygiene means care of teeth, gums, and oral prosthetic 126.5 devices. 126.6 (3) Home management tasks means: 126.7 (i) housekeeping; 126.8 (ii) laundry; 126.9 (iii) preparation of regular snacks and meals; and 126.10 (iv) shopping. 126.11 Assisted living services as defined in this section shall 126.12 not be authorized in boarding and lodging establishments 126.13 licensed according to sections 157.011 and 157.15 to 157.22. 126.14 (i) For establishments registered under chapter 144D, 126.15 assisted living services under this section means the services 126.16 described and licensed under section 144A.4605. 126.17 (j) For the purposes of this section, reimbursement for 126.18 assisted living services and residential care services shall be 126.19 a monthly rate negotiated and authorized by the county agency 126.20 based on an individualized service plan for each resident. The 126.21 rate shall not exceed the nonfederal share of the greater of 126.22 either the statewide or any of the geographic groups' weighted 126.23 average monthly medical assistance nursing facility payment rate 126.24 of the case mix resident class to which the 180-day eligible 126.25 client would be assigned under Minnesota Rules, parts 9549.0050 126.26 to 9549.0059, unless the services are provided by a home care 126.27 provider licensed by the department of health and are provided 126.28 in a building that is registered as a housing with services 126.29 establishment under chapter 144D and that provides 24-hour 126.30 supervision. 126.31 (k) For purposes of this section, companion services are 126.32 defined as nonmedical care, supervision and oversight, provided 126.33 to a functionally impaired adult. Companions may assist the 126.34 individual with such tasks as meal preparation, laundry and 126.35 shopping, but do not perform these activities as discrete 126.36 services. The provision of companion services does not entail 127.1 hands-on medical care. Providers may also perform light 127.2 housekeeping tasks which are incidental to the care and 127.3 supervision of the recipient. This service must be approved by 127.4 the case manager as part of the care plan. Companion services 127.5 must be provided by individuals ornonprofitorganizations who 127.6 are under contract with the local agency to provide the 127.7 service. Any person related to the waiver recipient by blood, 127.8 marriage or adoption cannot be reimbursed under this service. 127.9 Persons providing companion services will be monitored by the 127.10 case manager. 127.11 (l) For purposes of this section, training for direct 127.12 informal caregivers is defined as a classroom or home course of 127.13 instruction which may include: transfer and lifting skills, 127.14 nutrition, personal and physical cares, home safety in a home 127.15 environment, stress reduction and management, behavioral 127.16 management, long-term care decision making, care coordination 127.17 and family dynamics. The training is provided to an informal 127.18 unpaid caregiver of a 180-day eligible client which enables the 127.19 caregiver to deliver care in a home setting with high levels of 127.20 quality. The training must be approved by the case manager as 127.21 part of the individual care plan. Individuals, agencies, and 127.22 educational facilities which provide caregiver training and 127.23 education will be monitored by the case manager. 127.24 (m) A county agency may make payment from their alternative 127.25 care program allocation for other services provided to an 127.26 alternative care program recipient if those services prevent, 127.27 shorten, or delay institutionalization. These services may 127.28 include direct cash payments to the recipient for the purpose of 127.29 purchasing the recipient's services. The following provisions 127.30 apply to payments under this paragraph: 127.31 (1) a cash payment to a client under this provision cannot 127.32 exceed 80 percent of the monthly payment limit for that client 127.33 as specified in subdivision 4, paragraph (a), clause (7); 127.34 (2) a county may not approve any cash payment for a client 127.35 who has been assessed as having a dependency in orientation, 127.36 unless the client has an authorized representative under section 128.1 256.476, subdivision 2, paragraph (g), or for a client who is 128.2 concurrently receiving adult foster care, residential care, or 128.3 assisted living services; 128.4 (3) any service approved under this section must be a 128.5 service which meets the purpose and goals of the program as 128.6 listed in subdivision 1; 128.7 (4) cash payments must also meet the criteria in section 128.8 256.476, subdivision 4, paragraph (b), and recipients of cash 128.9 grants must meet the requirements in section 256.476, 128.10 subdivision 10; and 128.11 (5) the county shall report client outcomes, services, and 128.12 costs under this paragraph in a manner prescribed by the 128.13 commissioner. 128.14 Upon implementation of direct cash payments to clients under 128.15 this section, any person determined eligible for the alternative 128.16 care program who chooses a cash payment approved by the county 128.17 agency shall receive the cash payment under this section and not 128.18 under section 256.476 unless the person was receiving a consumer 128.19 support grant under section 256.476 before implementation of 128.20 direct cash payments under this section. 128.21 Sec. 13. Minnesota Statutes 1998, section 256B.0913, 128.22 subdivision 10, is amended to read: 128.23 Subd. 10. [ALLOCATION FORMULA.] (a) The alternative care 128.24 appropriation for fiscal years 1992 and beyond shall cover only 128.25 180-day eligible clients. 128.26 (b) Prior to July 1 of each year, the commissioner shall 128.27 allocate to county agencies the state funds available for 128.28 alternative care for persons eligible under subdivision 2. The 128.29 allocation for fiscal year 1992 shall be calculated using a base 128.30 that is adjusted to exclude the medical assistance share of 128.31 alternative care expenditures. The adjusted base is calculated 128.32 by multiplying each county's allocation for fiscal year 1991 by 128.33 the percentage of county alternative care expenditures for 128.34 180-day eligible clients. The percentage is determined based on 128.35 expenditures for services rendered in fiscal year 1989 or 128.36 calendar year 1989, whichever is greater. 129.1 (c) If the county expenditures for 180-day eligible clients 129.2 are 95 percent or more of its adjusted base allocation, the 129.3 allocation for the next fiscal year is 100 percent of the 129.4 adjusted base, plus inflation to the extent that inflation is 129.5 included in the state budget. 129.6 (d) If the county expenditures for 180-day eligible clients 129.7 are less than 95 percent of its adjusted base allocation, the 129.8 allocation for the next fiscal year is the adjusted base 129.9 allocation less the amount of unspent funds below the 95 percent 129.10 level. 129.11 (e) For fiscal year 1992 only, a county may receive an 129.12 increased allocation if annualized service costs for the month 129.13 of May 1991 for 180-day eligible clients are greater than the 129.14 allocation otherwise determined. A county may apply for this 129.15 increase by reporting projected expenditures for May to the 129.16 commissioner by June 1, 1991. The amount of the allocation may 129.17 exceed the amount calculated in paragraph (b). The projected 129.18 expenditures for May must be based on actual 180-day eligible 129.19 client caseload and the individual cost of clients' care plans. 129.20 If a county does not report its expenditures for May, the amount 129.21 in paragraph (c) or (d) shall be used. 129.22 (f) Calculations for paragraphs (c) and (d) are to be made 129.23 as follows: for each county, the determination of expenditures 129.24 shall be based on payments for services rendered from April 1 129.25 through March 31 in the base year, to the extent that claims 129.26 have been submitted by June 1 of that year. Calculations for 129.27 paragraphs (c) and (d) must also include the funds transferred 129.28 to the consumer support grant program for clients who have 129.29 transferred to that program from April 1 through March 31 in the 129.30 base year. 129.31 (g) For the biennium ending June 30, 2001, the allocation 129.32 of state funds to county agencies shall be calculated as 129.33 described in paragraphs (c) and (d). If the annual legislative 129.34 appropriation for the alternative care program is inadequate to 129.35 fund the combined county allocations for fiscal year 2000 or 129.36 2001, the commissioner shall distribute to each county the 130.1 entire annual appropriation as that county's percentage of the 130.2 computed base as calculated in paragraph (f). 130.3 Sec. 14. Minnesota Statutes 1998, section 256B.0913, 130.4 subdivision 12, is amended to read: 130.5 Subd. 12. [CLIENT PREMIUMS.] (a) A premium is required for 130.6 all 180-day eligible clients to help pay for the cost of 130.7 participating in the program. The amount of the premium for the 130.8 alternative care client shall be determined as follows: 130.9 (1) when the alternative care client's income less 130.10 recurring and predictable medical expenses is greater than the 130.11 medical assistance income standard but less than 150 percent of 130.12 the federal poverty guideline, and total assets are less than 130.13$6,000$10,000, the fee is zero; 130.14 (2) when the alternative care client's income less 130.15 recurring and predictable medical expenses is greater than 150 130.16 percent of the federal poverty guideline, and total assets are 130.17 less than$6,000$10,000, the fee is 25 percent of the cost of 130.18 alternative care services or the difference between 150 percent 130.19 of the federal poverty guideline and the client's income less 130.20 recurring and predictable medical expenses, whichever is less; 130.21 and 130.22 (3) when the alternative care client's total assets are 130.23 greater than$6,000$10,000, the fee is 25 percent of the cost 130.24 of alternative care services. 130.25 For married persons, total assets are defined as the total 130.26 marital assets less the estimated community spouse asset 130.27 allowance, under section 256B.059, if applicable. For married 130.28 persons, total income is defined as the client's income less the 130.29 monthly spousal allotment, under section 256B.058. 130.30 All alternative care services except case management shall 130.31 be included in the estimated costs for the purpose of 130.32 determining 25 percent of the costs. 130.33 The monthly premium shall be calculated based on the cost 130.34 of the first full month of alternative care services and shall 130.35 continue unaltered until the next reassessment is completed or 130.36 at the end of 12 months, whichever comes first. Premiums are 131.1 due and payable each month alternative care services are 131.2 received unless the actual cost of the services is less than the 131.3 premium. 131.4 (b) The fee shall be waived by the commissioner when: 131.5 (1) a person who is residing in a nursing facility is 131.6 receiving case management only; 131.7 (2) a person is applying for medical assistance; 131.8 (3) a married couple is requesting an asset assessment 131.9 under the spousal impoverishment provisions; 131.10 (4) a person is a medical assistance recipient, but has 131.11 been approved for alternative care-funded assisted living 131.12 services; 131.13 (5) a person is found eligible for alternative care, but is 131.14 not yet receiving alternative care services; or 131.15 (6) a person's fee under paragraph (a) is less than $25. 131.16 (c) The county agency must collect the premium from the 131.17 client and forward the amounts collected to the commissioner in 131.18 the manner and at the times prescribed by the commissioner. 131.19 Money collected must be deposited in the general fund and is 131.20 appropriated to the commissioner for the alternative care 131.21 program. The client must supply the county with the client's 131.22 social security number at the time of application. If a client 131.23 fails or refuses to pay the premium due, the county shall supply 131.24 the commissioner with the client's social security number and 131.25 other information the commissioner requires to collect the 131.26 premium from the client. The commissioner shall collect unpaid 131.27 premiums using the Revenue Recapture Act in chapter 270A and 131.28 other methods available to the commissioner. The commissioner 131.29 may require counties to inform clients of the collection 131.30 procedures that may be used by the state if a premium is not 131.31 paid. 131.32 (d) The commissioner shall begin to adopt emergency or 131.33 permanent rules governing client premiums within 30 days after 131.34 July 1, 1991, including criteria for determining when services 131.35 to a client must be terminated due to failure to pay a premium. 131.36 Sec. 15. [256B.0918] [OLDER ADULT SERVICES PLANNING AND 132.1 TRANSITION GRANTS AND LOANS.] 132.2 Subdivision 1. [DEFINITION.] "Eligible provider of older 132.3 adult services" means a nursing home licensed under sections 132.4 144A.01 to 144A.16 and certified by an appropriate authority 132.5 under United States Code, title 42, sections 1396-1396p, to 132.6 participate as a vendor in the medical assistance program 132.7 established under chapter 256B; a housing with services 132.8 establishment registered under chapter 144D; a home care 132.9 provider licensed under sections 144A.43 to 144A.48; or a 132.10 housing project where 80 percent or more of the tenants are 55 132.11 or older. 132.12 Subd. 2. [GRANTS AND LOAN ELIGIBILITY.] (a) An eligible 132.13 provider of older adult services may apply for a planning or 132.14 transition grant under section 256B.0917 and loans under chapter 132.15 462A. Seniors agenda for independent living (SAIL) shall assist 132.16 with planning and assessment at the request of the provider of 132.17 older adult services. 132.18 (b) Planning grants may be used by an eligible provider of 132.19 older adult services to develop a strategic plan that identifies 132.20 the appropriate institutional and noninstitutional settings 132.21 necessary to meet the long-term care needs of the community. 132.22 Strategic plans may be developed in cooperation with the county 132.23 public health and social services departments in which the 132.24 project will be undertaken. At a minimum, a strategic plan must 132.25 consist of: 132.26 (1) a needs assessment to determine what long-term care 132.27 services are needed and desired by the community; 132.28 (2) an assessment of the appropriate settings in which to 132.29 provide needed long-term care services; 132.30 (3) an assessment identifying currently available services 132.31 and their settings in the community; and 132.32 (4) a transition plan to achieve the needed outcome 132.33 identified by the assessments. 132.34 (c) Transition grants may be used by an eligible provider 132.35 of older adult services to implement transition projects 132.36 identified in a strategic plan. The eligible provider of older 133.1 adult services, the community, or a combined contribution from 133.2 both, must provide 20 percent of the total cost of the 133.3 transition project when funded by grants. 133.4 (d) Eligible providers of older adult services may apply to 133.5 the Minnesota Housing Finance Agency for financing to implement 133.6 transition projects subject to the requirements of chapter 462A. 133.7 (e) Transition projects include, but are not limited to: 133.8 (1) converting nursing homes, or portions thereof, into 133.9 housing with services establishments; 133.10 (2) adding on-site therapy services including converting a 133.11 portion of the nursing home or housing with services 133.12 establishment for that purpose; 133.13 (3) adding or expanding health-related or supportive 133.14 services to an existing building serving seniors; 133.15 (4) preserving or renovating affordable senior housing, 133.16 which may include necessary renovations or equipment upgrades; 133.17 (5) adding or expanding transportation services to a 133.18 community to assist seniors in maintaining their independence; 133.19 and 133.20 (6) offering a meals-on-wheels program in the community. 133.21 Sec. 16. Minnesota Statutes 1998, section 256B.431, 133.22 subdivision 17, is amended to read: 133.23 Subd. 17. [SPECIAL PROVISIONS FOR MORATORIUM EXCEPTIONS.] 133.24 (a) Notwithstanding Minnesota Rules, part 9549.0060, subpart 3, 133.25 for rate periods beginning on October 1, 1992, and for rate 133.26 years beginning after June 30, 1993, a nursing facility that (1) 133.27 has completed a construction project approved under section 133.28 144A.071, subdivision 4a, clause (m); (2) has completed a 133.29 construction project approved under section 144A.071, 133.30 subdivision 4a, and effective after June 30, 1995; or (3) has 133.31 completed a renovation, replacement, or upgrading project 133.32 approved under the moratorium exception process in section 133.33 144A.073 shall be reimbursed for costs directly identified to 133.34 that project as provided in subdivision 16 and this subdivision. 133.35 (b) Notwithstanding Minnesota Rules, part 9549.0060, 133.36 subparts 5, item A, subitems (1) and (3), and 7, item D, 134.1 allowable interest expense on debt shall include: 134.2 (1) interest expense on debt related to the cost of 134.3 purchasing or replacing depreciable equipment, excluding 134.4 vehicles, not to exceed six percent of the total historical cost 134.5 of the project; and 134.6 (2) interest expense on debt related to financing or 134.7 refinancing costs, including costs related to points, loan 134.8 origination fees, financing charges, legal fees, and title 134.9 searches; and issuance costs including bond discounts, bond 134.10 counsel, underwriter's counsel, corporate counsel, printing, and 134.11 financial forecasts. Allowable debt related to items in this 134.12 clause shall not exceed seven percent of the total historical 134.13 cost of the project. To the extent these costs are financed, 134.14 the straight-line amortization of the costs in this clause is 134.15 not an allowable cost; and 134.16 (3) interest on debt incurred for the establishment of a 134.17 debt reserve fund, net of the interest earned on the debt 134.18 reserve fund. 134.19 (c) Debt incurred for costs under paragraph (b) is not 134.20 subject to Minnesota Rules, part 9549.0060, subpart 5, item A, 134.21 subitem (5) or (6). 134.22 (d) The incremental increase in a nursing facility's rental 134.23 rate, determined under Minnesota Rules, parts 9549.0010 to 134.24 9549.0080, and this section, resulting from the acquisition of 134.25 allowable capital assets, and allowable debt and interest 134.26 expense under this subdivision shall be added to its 134.27 property-related payment rate and shall be effective on the 134.28 first day of the month following the month in which the 134.29 moratorium project was completed. 134.30 (e) Notwithstanding subdivision 3f, paragraph (a), for rate 134.31 periods beginning on October 1, 1992, and for rate years 134.32 beginning after June 30, 1993, the replacement-costs-new per bed 134.33 limit to be used in Minnesota Rules, part 9549.0060, subpart 4, 134.34 item B, for a nursing facility that has completed a renovation, 134.35 replacement, or upgrading project that has been approved under 134.36 the moratorium exception process in section 144A.073, or that 135.1 has completed an addition to or replacement of buildings, 135.2 attached fixtures, or land improvements for which the total 135.3 historical cost exceeds the lesser of $150,000 or ten percent of 135.4 the most recent appraised value, must be $47,500 per licensed 135.5 bed in multiple-bed rooms and $71,250 per licensed bed in a 135.6 single-bed room. These amounts must be adjusted annually as 135.7 specified in subdivision 3f, paragraph (a), beginning January 1, 135.8 1993. 135.9 (f) A nursing facility that completes a project identified 135.10 in this subdivision and, as of April 17, 1992, has not been 135.11 mailed a rate notice with a special appraisal for a completed 135.12 project, or completes a project after April 17, 1992, but before 135.13 September 1, 1992, may elect either to request a special 135.14 reappraisal with the corresponding adjustment to the 135.15 property-related payment rate under the laws in effect on June 135.16 30, 1992, or to submit their capital asset and debt information 135.17 after that date and obtain the property-related payment rate 135.18 adjustment under this section, but not both. 135.19 (g) For purposes of this paragraph, a total replacement 135.20 means the complete replacement of the nursing facility's 135.21 physical plant through the construction of a new physical plant 135.22 or the transfer of the nursing facility's license from one 135.23 physical plant location to another. For total replacement 135.24 projects completed on or after July 1, 1992, the commissioner 135.25 shall compute the incremental change in the nursing facility's 135.26 rental per diem, for rate years beginning on or after July 1, 135.27 1995, by replacing its appraised value, including the historical 135.28 capital asset costs, and the capital debt and interest costs 135.29 with the new nursing facility's allowable capital asset costs 135.30 and the related allowable capital debt and interest costs. If 135.31 the new nursing facility has decreased its licensed capacity, 135.32 the aggregate investment per bed limit in subdivision 3a, 135.33 paragraph (d), shall apply. If the new nursing facility has 135.34 retained a portion of the original physical plant for nursing 135.35 facility usage, then a portion of the appraised value prior to 135.36 the replacement must be retained and included in the calculation 136.1 of the incremental change in the nursing facility's rental per 136.2 diem. For purposes of this part, the original nursing facility 136.3 means the nursing facility prior to the total replacement 136.4 project. The portion of the appraised value to be retained 136.5 shall be calculated according to clauses (1) to (3): 136.6 (1) The numerator of the allocation ratio shall be the 136.7 square footage of the area in the original physical plant which 136.8 is being retained for nursing facility usage. 136.9 (2) The denominator of the allocation ratio shall be the 136.10 total square footage of the original nursing facility physical 136.11 plant. 136.12 (3) Each component of the nursing facility's allowable 136.13 appraised value prior to the total replacement project shall be 136.14 multiplied by the allocation ratio developed by dividing clause 136.15 (1) by clause (2). 136.16 In the case of either type of total replacement as 136.17 authorized under section 144A.071 or 144A.073, the provisions of 136.18 this subdivision shall also apply. For purposes of the 136.19 moratorium exception authorized under section 144A.071, 136.20 subdivision 4a, paragraph (s), if the total replacement involves 136.21 the renovation and use of an existing health care facility 136.22 physical plant, the new allowable capital asset costs and 136.23 related debt and interest costs shall include first the 136.24 allowable capital asset costs and related debt and interest 136.25 costs of the renovation, to which shall be added the allowable 136.26 capital asset costs of the existing physical plant prior to the 136.27 renovation, and if reported by the facility, the related 136.28 allowable capital debt and interest costs. 136.29 (h) Notwithstanding Minnesota Rules, part 9549.0060, 136.30 subpart 11, item C, subitem (2), for a total replacement, as 136.31 defined in paragraph (g), authorized under section 144A.071 or 136.32 section 144A.073 after July 1, 1999, the replacement-costs-new 136.33 per bed limit shall be $74,280 per licensed bed in 136.34 multiple-bed-rooms, $92,850 per licensed bed in semi-private 136.35 rooms with a fixed partition separating the resident beds, and 136.36 $111,420 per licensed bed in single rooms. Minnesota Rules, 137.1 part 9549.0060, subpart 11, item C, subitem (2), does not 137.2 apply. These amounts must be adjusted annually as specified in 137.3 subdivision 3f, paragraph (a), beginning January 1, 2000. 137.4 Sec. 17. Minnesota Statutes 1998, section 256B.431, is 137.5 amended by adding a subdivision to read: 137.6 Subd. 28. [CHANGES TO NURSING FACILITY REIMBURSEMENT 137.7 BEGINNING JULY 1, 1999.] (a) For the rate years beginning July 137.8 1, 1999, and July 1, 2000, the commissioner shall increase the 137.9 total payment rates as of June 30 of the same calendar year for 137.10 nursing facilities reimbursed under this section by 4.75 percent 137.11 for facilities located in geographic group one, 3.50 percent for 137.12 facilities located in geographic group two, and 2.75 percent for 137.13 facilities located in geographic group three. For those rate 137.14 years, the commissioner shall not index the allowable operating 137.15 cost per diems of these facilities by the inflation factor 137.16 provided for in subdivision 26, paragraph (d), clause (1). 137.17 (b) For the rate year beginning July 1, 1999, nursing 137.18 facilities with rates set according to section 256B.434 shall 137.19 not receive increases according to this subdivision but shall 137.20 receive inflation increases according to section 256B.434. For 137.21 the rate year beginning July 1, 2000, the commissioner shall 137.22 increase the total payment rates of nursing facilities with 137.23 rates set according to section 256B.434 by 4.75 percent for 137.24 facilities located in geographic group one, 3.50 percent for 137.25 facilities located in geographic group two, and 2.75 percent for 137.26 facilities located in geographic group three, and shall not 137.27 provide these facilities with inflation increases according to 137.28 section 256B.434. 137.29 (c) It is the intention of the legislature that the rate 137.30 increases provided in this subdivision be used to increase the 137.31 compensation packages of direct-care staff in nursing 137.32 facilities, by the percentage specified in paragraph (a) or (b) 137.33 that applies to the nursing facility. 137.34 Sec. 18. Minnesota Statutes 1998, section 256B.434, 137.35 subdivision 3, is amended to read: 137.36 Subd. 3. [DURATION AND TERMINATION OF CONTRACTS.] (a) 138.1 Subject to available resources, the commissioner may begin to 138.2 execute contracts with nursing facilities November 1, 1995. 138.3 (b) All contracts entered into under this section are for a 138.4 term of one year. Either party may terminate a contract at any 138.5 time without cause by providing3090 calendar days advance 138.6 written notice to the other party. The decision to terminate a 138.7 contract is not appealable.If neither party provides written138.8notice of termination the contract shall be renegotiated for138.9additional one-year terms, for up to a total of four consecutive138.10one-year termsNotwithstanding section 16C.05, subdivision 2, 138.11 paragraph (a), clause (5), the contract shall be renegotiated 138.12 for additional one-year terms, unless either party provides 138.13 written notice of termination. The provisions of the contract 138.14 shall be renegotiated annually by the parties prior to the 138.15 expiration date of the contract. The parties may voluntarily 138.16 renegotiate the terms of the contract at any time by mutual 138.17 agreement. 138.18 (c) If a nursing facility fails to comply with the terms of 138.19 a contract, the commissioner shall provide reasonable notice 138.20 regarding the breach of contract and a reasonable opportunity 138.21 for the facility to come into compliance. If the facility fails 138.22 to come into compliance or to remain in compliance, the 138.23 commissioner may terminate the contract. If a contract is 138.24 terminated, the contract payment remains in effect for the 138.25 remainder of the rate year in which the contract was terminated, 138.26 but in all other respects the provisions of this section do not 138.27 apply to that facility effective the date the contract is 138.28 terminated. The contract shall contain a provision governing 138.29 the transition back to the cost-based reimbursement system 138.30 established under section 256B.431, subdivision 25, and 138.31 Minnesota Rules, parts 9549.0010 to 9549.0080. A contract 138.32 entered into under this section may be amended by mutual 138.33 agreement of the parties. 138.34 Sec. 19. Minnesota Statutes 1998, section 256B.434, 138.35 subdivision 13, is amended to read: 138.36 Subd. 13. [PAYMENT SYSTEM REFORM ADVISORY COMMITTEE.](a)139.1 The commissioner, in consultation with an advisory committee, 139.2 shall study options for reforming the regulatory and 139.3 reimbursement system for nursing facilities to reduce the level 139.4 of regulation, reporting, and procedural requirements, and to 139.5 provide greater flexibility and incentives to stimulate 139.6 competition and innovation. The advisory committee shall 139.7 include, at a minimum, representatives from the long-term care 139.8 provider community, the department of health, and consumers of 139.9 long-term care services.The advisory committee sunsets on June139.1030, 1997.Among other things, the commissioner shall consider 139.11 the feasibility and desirability of changing from a 139.12 certification requirement to an accreditation requirement for 139.13 participation in the medical assistance program, options to 139.14 encourage early discharge of short-term residents through the 139.15 provision of intensive therapy, and further modifications needed 139.16 in rate equalization. The commissioner shall also include 139.17 detailed recommendations for a permanent managed care payment 139.18 system to replace the contractual alternative payment 139.19 demonstration project authorized under this section. The 139.20 commissioner shall submit a report with findings and 139.21 recommendations to the legislature by January 15, 1997. 139.22(b) If a permanent managed care payment system has not been139.23enacted into law by July 1, 1997, the commissioner shall develop139.24and implement a transition plan to enable nursing facilities139.25under contract with the commissioner under this section to139.26revert to the cost-based payment system at the expiration of the139.27alternative payment demonstration project. The commissioner139.28shall include in the alternative payment demonstration project139.29contracts entered into under this section a provision to permit139.30an amendment to the contract to be made after July 1, 1997,139.31governing the transition back to the cost-based payment system.139.32The transition plan and contract amendments are not subject to139.33rulemaking requirements.139.34 Sec. 20. Minnesota Statutes 1998, section 256B.435, is 139.35 amended to read: 139.36 256B.435 [NURSING FACILITY REIMBURSEMENT SYSTEM EFFECTIVE 140.1 JULY 1,20002001.] 140.2 Subdivision 1. [IN GENERAL.] Effective July 1,20002001, 140.3 the commissioner shall implement a performance-based contracting 140.4 system to replace the current method of setting operating cost 140.5 payment rates under sections 256B.431 and 256B.434 and Minnesota 140.6 Rules, parts 9549.0010 to 9549.0080. Operating cost payment 140.7 rates for newly established facilities under Minnesota Rules, 140.8 part 9549.0057, shall be established using section 256B.431 and 140.9 Minnesota Rules, parts 9549.0010 to 9549.0070. A nursing 140.10 facility in operation on May 1, 1998, with payment rates not 140.11 established under section 256B.431 or 256B.434 on that date, is 140.12 ineligible for this performance-based contracting system. In 140.13 determining prospective payment rates of nursing facility 140.14 services, the commissioner shall distinguish between operating 140.15 costs and property-related costs. The commissioner of finance 140.16 shall include an annual inflationary adjustment in operating 140.17 costs for nursing facilities using the inflation factor 140.18 specified in subdivision 3 and funding for incentive-based 140.19 payments as a budget change request in each biennial detailed 140.20 expenditure budget submitted to the legislature under section 140.21 16A.11. Property related payment rates, including real estate 140.22 taxes and special assessments, shall be determined under section 140.23 256B.431 or 256B.434 or under a new property-related 140.24 reimbursement system, if one is implemented by the commissioner 140.25 under subdivision 3. The commissioner shall present additional 140.26 recommendations for performance-based contracting for nursing 140.27 facilities to the legislature by February 15, 2000, in the 140.28 following specific areas: 140.29 (a) development of an interim default payment mechanism for 140.30 nursing facilities that do not respond to the state's request 140.31 for proposal but wish to continue participation in the medical 140.32 assistance program; nursing facilities the state does not select 140.33 in the request for proposal process; and nursing facilities 140.34 whose contract has been canceled; 140.35 (b) development of criteria for facilities to earn 140.36 performance-based incentive payments based on relevant outcomes 141.1 negotiated by nursing facilities and the commissioner and that 141.2 recognize both continuous quality efforts and quality 141.3 improvement; 141.4 (c) development of criteria and a process under which 141.5 nursing facilities can request rate adjustments for low base 141.6 rates, geographic disparities, or other reasons; 141.7 (d) development of a dispute resolution mechanism for 141.8 nursing facilities that are denied a contract, denied incentive 141.9 payments, or denied a rate adjustment; 141.10 (e) development of a property payment system to address the 141.11 capital needs of nursing facilities that will be funded with 141.12 additional appropriations; 141.13 (f) establishment of a transitional plan to move from dual 141.14 assessment instruments to the federally mandated resident 141.15 assessment system, whereby the financial impact for each 141.16 facility would be budget neutral; 141.17 (g) identification of net cost implications for facilities 141.18 and to the department of preparing for and implementing 141.19 performance-based contracting or any proposed alternative 141.20 system; 141.21 (h) identification of facility financial and statistical 141.22 reporting requirements; and 141.23 (i) identification of exemptions from current regulations 141.24 and statutes applicable under performance-based contracting. 141.25 Subd. 1a. [REQUESTS FOR PROPOSALS.] (a) For nursing 141.26 facilities with rates established under section 256B.434 on 141.27 January 1, 2001, the commissioner shall renegotiate contracts 141.28 without requiring a response to a request for proposal, 141.29 notwithstanding the solicitation process described in chapter 141.30 16C. 141.31 (b) Prior to July 1, 2001, the commissioner shall publish 141.32 in the State Register a request for proposals to provide nursing 141.33 facility services according to this section. The commissioner 141.34 will consider proposals from all nursing facilities that have 141.35 payment rates established under section 256B.431. The 141.36 commissioner must respond to all proposals in a timely manner. 142.1 (c) In issuing a request for proposals, the commissioner 142.2 may develop reasonable requirements which, in the judgment of 142.3 the commissioner, are necessary to protect residents or ensure 142.4 that the performance-based contracting system furthers the 142.5 interests of the state of Minnesota. The request for proposals 142.6 may include, but need not be limited to: 142.7 (1) a requirement that nursing facility make reasonable 142.8 efforts to maximize Medicare payments on behalf of eligible 142.9 residents; 142.10 (2) requirements designed to prevent inappropriate or 142.11 illegal discrimination against residents enrolled in the medical 142.12 assistance program as compared to private paying residents; 142.13 (3) requirements designed to ensure that admissions to a 142.14 nursing facility are appropriate and that reasonable efforts are 142.15 made to place residents in home and community-based settings 142.16 when appropriate; 142.17 (4) a requirement to agree to participate in the 142.18 development of data collection systems and outcome-based 142.19 standards. Among other requirements specified by the 142.20 commissioner, each facility entering into a contract may be 142.21 required to pay an annual fee not to exceed $1,000. The 142.22 commissioner must use revenue generated from the fees to 142.23 contract with a qualified consultant or contractor to develop 142.24 data collection systems and outcome-based contracting standards; 142.25 (5) a requirement that Medicare-certified contractors agree 142.26 to maintain Medicare cost reports and to submit them to the 142.27 commissioner upon request, or at times specified by the 142.28 commissioner; and that contractors that are not 142.29 Medicare-certified agree to maintain a uniform cost report in a 142.30 format established by the commissioner and to submit the report 142.31 to the commissioner upon request, or at times specified by the 142.32 commissioner; 142.33 (6) a requirement that demonstrates willingness and ability 142.34 to develop and maintain data collection and retrieval systems to 142.35 measure outcomes; and 142.36 (7) a requirement to provide all information and assurances 143.1 required by the terms and conditions of the federal waiver or 143.2 federal approval. 143.3 (d) In addition to the information and assurances contained 143.4 in the submitted proposals, the commissioner may consider the 143.5 following criteria in developing the terms of the contract: 143.6 (1) the facility's history of compliance with federal and 143.7 state laws and rules. A facility deemed to be in substantial 143.8 compliance with federal and state laws and rules is eligible to 143.9 respond to a request for proposals. A facility's compliance 143.10 history shall not be the sole determining factor in situations 143.11 where the facility has been sold and the new owners have 143.12 submitted a proposal; 143.13 (2) whether the facility has a record of excessive 143.14 licensure fines or sanctions or fraudulent cost reports; 143.15 (3) the facility's financial history and solvency; and 143.16 (4) other factors identified by the commissioner deemed 143.17 relevant to developing the terms of the contract, including a 143.18 determination that a contract with a particular facility is not 143.19 in the best interests of the residents of the facility or the 143.20 state of Minnesota. 143.21 (e) Notwithstanding the requirements of the solicitation 143.22 process described in chapter 16C, the commissioner may contract 143.23 with nursing facilities established according to section 143.24 144A.073 without issuing a request for proposals. 143.25 (f) Notwithstanding subdivision 1, after July 1, 2001, the 143.26 commissioner may contract with additional nursing facilities, 143.27 according to requests for proposals. 143.28 Subd. 2. [CONTRACT PROVISIONS.] (a) The performance-based 143.29 contract with each nursing facility must include provisions that: 143.30 (1) apply the resident case mix assessment provisions of 143.31 Minnesota Rules, parts 9549.0051, 9549.0058, and 9549.0059, or 143.32 another assessment system, with the goal of moving to a single 143.33 assessment system; 143.34 (2) monitor resident outcomes through various methods, such 143.35 as quality indicators based on the minimum data set and other 143.36 utilization and performance measures; 144.1 (3) require the establishment and use of a continuous 144.2 quality improvement process that integrates information from 144.3 quality indicators and regular resident and family satisfaction 144.4 interviews; 144.5 (4) require annual reporting of facility statistical 144.6 information, including resident days by case mix category, 144.7 productive nursing hours, wages and benefits, and raw food costs 144.8 for use by the commissioner in the development of facility 144.9 profiles that include trends in payment and service utilization; 144.10 (5) require from each nursing facility an annual certified 144.11 audited financial statement consisting of a balance sheet, 144.12 income and expense statements, and an opinion from either a 144.13 licensed or certified public accountant, if a certified audit 144.14 was prepared, or unaudited financial statements if no certified 144.15 audit was prepared; and 144.16 (6) specify the method for resolving disputes; 144.17 (7) establish additional requirementsand penaltiesfor 144.18 nursing facilities not meeting the standards set forth in the 144.19 performance-based contract. 144.20 (b) The commissioner may develop additional incentive-based 144.21 payments for achieving specified outcomes specified in each 144.22 contract. The specified facility-specific outcomes must be 144.23 measurable and approved by the commissioner. 144.24 (c) The commissioner may also contract with nursing 144.25 facilities in other ways through requests for proposals, 144.26 including contracts on a risk or nonrisk basis, with nursing 144.27 facilities or consortia of nursing facilities, to provide 144.28 comprehensive long-term care coverage on a premium or capitated 144.29 basis. 144.30 (d) The commissioner may negotiate different contract terms 144.31 for different nursing facilities. 144.32 Subd. 2a. [DURATION AND TERMINATION OF CONTRACTS.] (a) All 144.33 contracts entered into under this section are for a term of one 144.34 year. Either party may terminate this contract at any time 144.35 without cause by providing 90 calendar days' advance written 144.36 notice to the other party. Notwithstanding section 16C.05, 145.1 subdivisions 2, paragraph (a), and 5, if neither party provides 145.2 written notice of termination, the contract shall be 145.3 renegotiated for additional one-year terms or the terms of the 145.4 existing contract will be extended for one year. The provisions 145.5 of the contract shall be renegotiated annually by the parties 145.6 prior to the expiration date of the contract. The parties may 145.7 voluntarily renegotiate the terms of the contract at any time by 145.8 mutual agreement. 145.9 (b) If a nursing facility fails to comply with the terms of 145.10 a contract, the commissioner shall provide reasonable notice 145.11 regarding the breach of contract and a reasonable opportunity 145.12 for the facility to come into compliance. If the facility fails 145.13 to come into compliance or to remain in compliance, the 145.14 commissioner may terminate the contract. If a contract is 145.15 terminated, provisions of section 256B.48, subdivision 1a, shall 145.16 apply. 145.17 Subd. 3. [PAYMENT RATE PROVISIONS.] (a) For rate years 145.18 beginning on or after July 1,20002001, within the limits of 145.19 appropriations specifically for this purpose, the commissioner 145.20 shall determine operating cost payment rates for each licensed 145.21 and certified nursing facility by indexing its operating cost 145.22 payment rates in effect on June 30,20002001, for inflation. 145.23 The inflation factor to be used must be based on the change in 145.24 the Consumer Price Index-All Items, United States city average 145.25 (CPI-U) as forecasted by Data Resources, Inc. in the fourth 145.26 quarter preceding the rate year. The CPI-U forecasted index for 145.27 operating cost payment rates shall be based on the 12-month 145.28 period from the midpoint of the nursing facility's prior rate 145.29 year to the midpoint of the rate year for which the operating 145.30 payment rate is being determined. The operating cost payment 145.31 rate to be inflated shall be the total payment rate in effect on 145.32 June 30, 2001, minus the portion determined to be the 145.33 property-related payment rate, minus the per diem amount of the 145.34 preadmission screening cost included in the nursing facility's 145.35 last payment rate established under section 256B.431. 145.36 (b)Beginning July 1, 2000, each nursing facility subject146.1to a performance-based contract under this section shall choose146.2one of two methods of payment for property-related costs:146.3(1) the method established in section 256B.434; or146.4(2) the method established in section 256B.431.146.5Once the nursing facility has made the election in this146.6paragraph, that election shall remain in effect for at least146.7four years or until an alternative property payment system is146.8developed.A per diem amount for preadmission screening will be 146.9 added onto the contract payment rates according to the method of 146.10 distribution of county allocation described in section 146.11 256B.0911, subdivision 6, paragraph (a). 146.12 (c) For rate years beginning on or after July 1,20002001, 146.13 the commissioner may implement a new method of payment for 146.14 property-related costs that addresses the capital needs of 146.15 nursing facilities.Notwithstanding paragraph (b),The new 146.16 property payment system or systems, if implemented, shall 146.17 replace the currentmethodmethods of setting property payment 146.18 rates under sections 256B.431 and 256B.434. 146.19 Subd. 4. [CONTRACT PAYMENT RATES; APPEALS.] If an appeal 146.20 is pending concerning the cost-based payment rates that are the 146.21 basis for the calculation of the payment rate under this 146.22 section, the commissioner and the nursing facility may agree on 146.23 an interim contract rate to be used until the appeal is 146.24 resolved. When the appeal is resolved, the contract rate must 146.25 be adjusted retroactively according to the appeal decision. 146.26 Subd. 5. [CONSUMER PROTECTION.] In addition to complying 146.27 with all applicable laws regarding consumer protection, as a 146.28 condition of entering into a contract under this section, a 146.29 nursing facility must agree to: 146.30 (1) establish resident grievance procedures; 146.31 (2) establish expedited grievance procedures to resolve 146.32 complaints made by short-stay residents; and 146.33 (3) make available to residents and families a copy of the 146.34 performance-based contract and outcomes to be achieved. 146.35 Subd. 6. [CONTRACTS ARE VOLUNTARY.] Participation of 146.36 nursing facilities in the medical assistance program is 147.1 voluntary. The terms and procedures governing the 147.2 performance-based contract are determined under this section and 147.3 through negotiations between the commissioner and nursing 147.4 facilities. 147.5 Subd. 7. [FEDERAL REQUIREMENTS.] The commissioner shall 147.6 implement the performance-based contracting system subject to 147.7 any required federal waivers or approval and in a manner that is 147.8 consistent with federal requirements. If a provision of this 147.9 section is inconsistent with a federal requirement, the federal 147.10 requirement supersedes the inconsistent provision. The 147.11 commissioner shall seek federal approval and request waivers as 147.12 necessary to implement this section. 147.13 Sec. 21. Minnesota Statutes 1998, section 256B.48, 147.14 subdivision 1, is amended to read: 147.15 Subdivision 1. [PROHIBITED PRACTICES.] A nursing facility 147.16 is not eligible to receive medical assistance payments unless it 147.17 refrains from all of the following: 147.18 (a) Charging private paying residents rates for similar 147.19 services which exceed those which are approved by the state 147.20 agency for medical assistance recipients as determined by the 147.21 prospective desk audit rate, except under the following 147.22 circumstances: the nursing facility may (1) charge private 147.23 paying residents a higher rate for a private room, and (2) 147.24 charge for special services which are not included in the daily 147.25 rate if medical assistance residents are charged separately at 147.26 the same rate for the same services in addition to the daily 147.27 rate paid by the commissioner. Services covered by the payment 147.28 rate must be the same regardless of payment source. Special 147.29 services, if offered, must be available to all residents in all 147.30 areas of the nursing facility and charged separately at the same 147.31 rate. Residents are free to select or decline special 147.32 services. Special services must not include services which must 147.33 be provided by the nursing facility in order to comply with 147.34 licensure or certification standards and that if not provided 147.35 would result in a deficiency or violation by the nursing 147.36 facility. Services beyond those required to comply with 148.1 licensure or certification standards must not be charged 148.2 separately as a special service if they were included in the 148.3 payment rate for the previous reporting year. A nursing 148.4 facility that charges a private paying resident a rate in 148.5 violation of this clause is subject to an action by the state of 148.6 Minnesota or any of its subdivisions or agencies for civil 148.7 damages. A private paying resident or the resident's legal 148.8 representative has a cause of action for civil damages against a 148.9 nursing facility that charges the resident rates in violation of 148.10 this clause. The damages awarded shall include three times the 148.11 payments that result from the violation, together with costs and 148.12 disbursements, including reasonable attorneys' fees or their 148.13 equivalent. A private paying resident or the resident's legal 148.14 representative, the state, subdivision or agency, or a nursing 148.15 facility may request a hearing to determine the allowed rate or 148.16 rates at issue in the cause of action. Within 15 calendar days 148.17 after receiving a request for such a hearing, the commissioner 148.18 shall request assignment of an administrative law judge under 148.19 sections 14.48 to 14.56 to conduct the hearing as soon as 148.20 possible or according to agreement by the parties. The 148.21 administrative law judge shall issue a report within 15 calendar 148.22 days following the close of the hearing. The prohibition set 148.23 forth in this clause shall not apply to facilities licensed as 148.24 boarding care facilities which are not certified as skilled or 148.25 intermediate care facilities level I or II for reimbursement 148.26 through medical assistance. 148.27 (b)Requiring(1) Charging, soliciting, accepting, or 148.28 receiving from an applicant for admission to the facility, 148.29 orthe guardian or conservatorfrom anyone acting in behalf of 148.30 the applicant, as a condition of admission,to payexpediting 148.31 the admission, or as a requirement for the individual's 148.32 continued stay, any feeor, depositin excess of $100, gift, 148.33 money, donation, or other consideration not otherwise required 148.34 as payment under the state plan. Nothing in this clause would 148.35 prohibit discharge for nonpayment of services in accordance with 148.36 state and federal regulations; 149.1 (2) requiring an individual, or anyone acting in behalf of 149.2 the individual, to loan any money to the nursing facility, or; 149.3 (3) requiring an individual, or anyone acting in behalf of 149.4 the individual, to promise to leave all or part of 149.5 theapplicant'sindividual's estate to the facility; or (4) 149.6 requiring a third-party guarantee of payment to the facility as 149.7 a condition of admission, expedited admission, or continued stay 149.8 in the facility. 149.9 (c) Requiring any resident of the nursing facility to 149.10 utilize a vendor of health care services chosen by the nursing 149.11 facility. 149.12 (d) Providing differential treatment on the basis of status 149.13 with regard to public assistance. 149.14 (e) Discriminating in admissions, services offered, or room 149.15 assignment on the basis of status with regard to public 149.16 assistance or refusal to purchase special services. Admissions 149.17 discrimination shall include, but is not limited to: 149.18 (1) basing admissions decisions upon assurance by the 149.19 applicant to the nursing facility, or the applicant's guardian 149.20 or conservator, that the applicant is neither eligible for nor 149.21 will seek public assistance for payment of nursing facility care 149.22 costs; and 149.23 (2) engaging in preferential selection from waiting lists 149.24 based on an applicant's ability to pay privately or an 149.25 applicant's refusal to pay for a special service. 149.26 The collection and use by a nursing facility of financial 149.27 information of any applicant pursuant to a preadmission 149.28 screening program established by law shall not raise an 149.29 inference that the nursing facility is utilizing that 149.30 information for any purpose prohibited by this paragraph. 149.31 (f) Requiring any vendor of medical care as defined by 149.32 section 256B.02, subdivision 7, who is reimbursed by medical 149.33 assistance under a separate fee schedule, to pay any amount 149.34 based on utilization or service levels or any portion of the 149.35 vendor's fee to the nursing facility except as payment for 149.36 renting or leasing space or equipment or purchasing support 150.1 services from the nursing facility as limited by section 150.2 256B.433. All agreements must be disclosed to the commissioner 150.3 upon request of the commissioner. Nursing facilities and 150.4 vendors of ancillary services that are found to be in violation 150.5 of this provision shall each be subject to an action by the 150.6 state of Minnesota or any of its subdivisions or agencies for 150.7 treble civil damages on the portion of the fee in excess of that 150.8 allowed by this provision and section 256B.433. Damages awarded 150.9 must include three times the excess payments together with costs 150.10 and disbursements including reasonable attorney's fees or their 150.11 equivalent. 150.12 (g) Refusing, for more than 24 hours, to accept a resident 150.13 returning to the same bed or a bed certified for the same level 150.14 of care, in accordance with a physician's order authorizing 150.15 transfer, after receiving inpatient hospital services. 150.16The prohibitions set forth in clause (b) shall not apply to150.17a retirement facility with more than 325 beds including at least150.18150 licensed nursing facility beds and which:150.19(1) is owned and operated by an organization tax-exempt150.20under section 290.05, subdivision 1, clause (i); and150.21(2) accounts for all of the applicant's assets which are150.22required to be assigned to the facility so that only expenses150.23for the cost of care of the applicant may be charged against the150.24account; and150.25(3) agrees in writing at the time of admission to the150.26facility to permit the applicant, or the applicant's guardian,150.27or conservator, to examine the records relating to the150.28applicant's account upon request, and to receive an audited150.29statement of the expenditures charged against the applicant's150.30individual account upon request; and150.31(4) agrees in writing at the time of admission to the150.32facility to permit the applicant to withdraw from the facility150.33at any time and to receive, upon withdrawal, the balance of the150.34applicant's individual account.150.35 For a period not to exceed 180 days, the commissioner may 150.36 continue to make medical assistance payments to a nursing 151.1 facility or boarding care home which is in violation of this 151.2 section if extreme hardship to the residents would result. In 151.3 these cases the commissioner shall issue an order requiring the 151.4 nursing facility to correct the violation. The nursing facility 151.5 shall have 20 days from its receipt of the order to correct the 151.6 violation. If the violation is not corrected within the 20-day 151.7 period the commissioner may reduce the payment rate to the 151.8 nursing facility by up to 20 percent. The amount of the payment 151.9 rate reduction shall be related to the severity of the violation 151.10 and shall remain in effect until the violation is corrected. 151.11 The nursing facility or boarding care home may appeal the 151.12 commissioner's action pursuant to the provisions of chapter 14 151.13 pertaining to contested cases. An appeal shall be considered 151.14 timely if written notice of appeal is received by the 151.15 commissioner within 20 days of notice of the commissioner's 151.16 proposed action. 151.17 In the event that the commissioner determines that a 151.18 nursing facility is not eligible for reimbursement for a 151.19 resident who is eligible for medical assistance, the 151.20 commissioner may authorize the nursing facility to receive 151.21 reimbursement on a temporary basis until the resident can be 151.22 relocated to a participating nursing facility. 151.23 Certified beds in facilities which do not allow medical 151.24 assistance intake on July 1, 1984, or after shall be deemed to 151.25 be decertified for purposes of section 144A.071 only. 151.26 Sec. 22. Minnesota Statutes 1998, section 256B.48, 151.27 subdivision 1a, is amended to read: 151.28 Subd. 1a. [TERMINATION.] If a nursing facility terminates 151.29 its participation in the medical assistance program, whether 151.30 voluntarily or involuntarily, the commissioner may authorize the 151.31 nursing facility to receive continued medical assistance 151.32 reimbursementonly on a temporary basisuntil medical assistance 151.33 residents can be relocated to nursing facilities participating 151.34 in the medical assistance program. 151.35 Sec. 23. Minnesota Statutes 1998, section 256B.48, 151.36 subdivision 1b, is amended to read: 152.1 Subd. 1b. [EXCEPTION.] Notwithstanding any agreement 152.2 between a nursing facility and the department of human services 152.3 or the provisions of this section or section 256B.411, other 152.4 than subdivision 1a, the commissioner may authorize continued 152.5 medical assistance payments to a nursing facility which ceased 152.6 intake of medical assistance recipients prior to July 1, 1983, 152.7 and which charges private paying residents rates that exceed 152.8 those permitted by subdivision 1, paragraph (a), for (i) 152.9 residents who resided in the nursing facility before July 1, 152.10 1983, or (ii) residents for whom the commissioner or any 152.11 predecessors of the commissioner granted a permanent individual 152.12 waiver prior to October 1, 1983. Nursing facilities seeking 152.13 continued medical assistance payments under this subdivision 152.14 shall make the reports required under subdivision 2, except that 152.15 on or after December 31, 1985, the financial statements required 152.16 need not be audited by or contain the opinion of a certified 152.17 public accountant or licensed public accountant, but need only 152.18 be reviewed by a certified public accountant or licensed public 152.19 accountant. In the event that the state is determined by the 152.20 federal government to be no longer eligible for the federal 152.21 share of medical assistance payments made to a nursing facility 152.22 under this subdivision, the commissioner may cease medical 152.23 assistance payments, under this subdivision, to that nursing 152.24 facility.Between October 1, 1992, and July 1, 1993, a facility152.25governed by this subdivision may elect to resume full152.26participation in the medical assistance program by agreeing to152.27comply with all of the requirements of the medical assistance152.28program, including the rate equalization law in subdivision 1,152.29paragraph (a), and all other requirements established in law or152.30rule, and to resume intake of new medical assistance recipients.152.31 Sec. 24. Minnesota Statutes 1998, section 256B.48, 152.32 subdivision 6, is amended to read: 152.33 Subd. 6. [MEDICARE CERTIFICATION.] (a) [DEFINITION.] For 152.34 purposes of this subdivision, "nursing facility" means a nursing 152.35 facility that is certified as a skilled nursing facility or, 152.36 after September 30, 1990, a nursing facility licensed under 153.1 chapter 144A that is certified as a nursing facility. 153.2 (b) [MEDICARE PARTICIPATION REQUIRED.] All nursing 153.3 facilities shall participate in Medicare part A and part B 153.4 unless, after submitting an application, Medicare certification 153.5 is denied by the federal health care financing administration. 153.6 Medicare review shall be conducted at the time of the annual 153.7 medical assistance review. Charges for Medicare-covered 153.8 services provided to residents who are simultaneously eligible 153.9 for medical assistance and Medicare must be billed to Medicare 153.10 part A or part B before billing medical assistance. Medical 153.11 assistance may be billed only for charges not reimbursed by 153.12 Medicare. Within the limits of available appropriations, the 153.13 commissioner shall approve a request for an exemption from 153.14 Medicare certification if a nursing facility meets the following 153.15 criteria: 153.16 (1) the facility has had at least six months' experience 153.17 under the Medicare prospective payment system; and 153.18 (2) the facility can demonstrate losses under the Medicare 153.19 prospective payment system that threaten the financial viability 153.20 of the facility. 153.21 Facilities requesting an exemption from Medicare 153.22 certification may request that they not be certified for 153.23 Medicare for up to three years. The commissioner must respond 153.24 within 30 days to a request for an exemption under this section. 153.25 (c)[UNTIL SEPTEMBER 30, 1990.] Until September 30, 1990, a153.26nursing facility satisfies the requirements of paragraph (b)153.27if: (1) at least 50 percent of the facility's beds that are153.28licensed under section 144A and certified as skilled nursing153.29beds under the medical assistance program are Medicare153.30certified; or (2) if a nursing facility's beds are licensed153.31under section 144A, and some are medical assistance certified as153.32skilled nursing beds and others are medical assistance certified153.33as intermediate care facility I beds, at least 50 percent of the153.34facility's total skilled nursing beds and intermediate care153.35facility I beds or 100 percent of its skilled nursing beds,153.36whichever is less, are Medicare certified.154.1(d)[AFTER SEPTEMBER 30, 1990.] After September 30, 1990, a 154.2 nursing facility satisfies the requirements of paragraph (b) if 154.3 at least 50 percent of the facility's beds certified as nursing 154.4 facility beds under the medical assistance program are Medicare 154.5 certified. 154.6(e)(d) [CONFLICT WITH MEDICARE DISTINCT PART 154.7 REQUIREMENTS.] At the request of a facility, the commissioner of 154.8 human services may reduce the 50 percent Medicare participation 154.9 requirement in paragraphs (c) and (d) to no less than 20 percent 154.10 if the commissioner of health determines that, due to the 154.11 facility's physical plant configuration, the facility cannot 154.12 satisfy Medicare distinct part requirements at the 50 percent 154.13 certification level. To receive a reduction in the 154.14 participation requirement, a facility must demonstrate that the 154.15 reduction will not adversely affect access of Medicare-eligible 154.16 residents to Medicare-certified beds. 154.17(f)(e) [INSTITUTIONS FOR MENTAL DISEASE.] The commissioner 154.18 may grant exceptions to the requirements of paragraph (b) for 154.19 nursing facilities that are designated as institutions for 154.20 mental disease. 154.21(g)(f) [NOTICE OF RIGHTS.] The commissioner shall inform 154.22 recipients of their rights under this subdivision and section 154.23 144.651, subdivision 29. 154.24 Sec. 25. Minnesota Statutes 1998, section 256B.50, 154.25 subdivision 1e, is amended to read: 154.26 Subd. 1e. [ATTORNEY'S FEES AND COSTS.] (a) Notwithstanding 154.27 section 15.472, paragraph (a), for an issue appealed under 154.28 subdivision 1, the prevailing party in a contested case 154.29 proceeding or, if appealed, in subsequent judicial review, must 154.30 be awarded reasonable attorney's fees and costs incurred in 154.31 litigating the appeal, if the prevailing party shows that the 154.32 position of the opposing party was not substantially justified. 154.33 The procedures for awarding fees and costs set forth in section 154.34 15.474 must be followed in determining the prevailing party's 154.35 fees and costs except as otherwise provided in this 154.36 subdivision. For purposes of this subdivision, "costs" means 155.1 subpoena fees and mileage, transcript costs, court reporter 155.2 fees, witness fees, postage and delivery costs, photocopying and 155.3 printing costs, amounts charged the commissioner by the office 155.4 of administrative hearings, and direct administrative costs of 155.5 the department; and "substantially justified" means that a 155.6 position had a reasonable basis in law and fact, based on the 155.7 totality of the circumstances prior to and during the contested 155.8 case proceeding and subsequent review. 155.9 (b) When an award is made to the department under this 155.10 subdivision, attorney fees must be calculated at the cost to the 155.11 department. When an award is made to a provider under this 155.12 subdivision, attorney fees must be calculated at the rate 155.13 charged to the provider except that attorney fees awarded must 155.14 be the lesser of the attorney's normal hourly fee or $100 per 155.15 hour. 155.16 (c) In contested case proceedings involving more than one 155.17 issue, the administrative law judge shall determine what portion 155.18 of each party's attorney fees and costs is related to the issue 155.19 or issues on which it prevailed and for which it is entitled to 155.20 an award. In making that determination, the administrative law 155.21 judge shall consider the amount of time spent on each issue, the 155.22 precedential value of the issue, the complexity of the issue, 155.23 and other factors deemed appropriate by the administrative law 155.24 judge. 155.25 (d) When the department prevails on an issue involving more 155.26 than one provider, the administrative law judge shall allocate 155.27 the total amount of any award for attorney fees and costs among 155.28 the providers. In determining the allocation, the 155.29 administrative law judge shall consider each provider's monetary 155.30 interest in the issue and other factors deemed appropriate by 155.31 the administrative law judge. 155.32 (e) Attorney fees and costs awarded to the department for 155.33 proceedings under this subdivision must not be reported or 155.34 treated as allowable costs on the provider's cost report. 155.35 (f) Fees and costs awarded to a provider for proceedings 155.36 under this subdivision must be reimbursed to themby reporting156.1the amount of fees and costs awarded as allowable costs on the156.2provider's cost report for the reporting year in which they were156.3awarded. Fees and costs reported pursuant to this subdivision156.4must be included in the general and administrative cost category156.5but are not subject to categorical or overall cost limitations156.6established in rule or statutewithin 120 days of the final 156.7 decision on the award of attorney fees and costs. 156.8 (g) If the provider fails to pay the awarded attorney fees 156.9 and costs within 120 days of the final decision on the award of 156.10 attorney fees and costs, the department may collect the amount 156.11 due through any method available to it for the collection of 156.12 medical assistance overpayments to providers. Interest charges 156.13 must be assessed on balances outstanding after 120 days of the 156.14 final decision on the award of attorney fees and costs. The 156.15 annual interest rate charged must be the rate charged by the 156.16 commissioner of revenue for late payment of taxes that is in 156.17 effect on the 121st day after the final decision on the award of 156.18 attorney fees and costs. 156.19 (h) Amounts collected by the commissioner pursuant to this 156.20 subdivision must be deemed to be recoveries pursuant to section 156.21 256.01, subdivision 2, clause (15). 156.22 (i) This subdivision applies to all contested case 156.23 proceedings set on for hearing by the commissioner on or after 156.24 April 29, 1988, regardless of the date the appeal was filed. 156.25 Sec. 26. Minnesota Statutes 1998, section 256B.501, is 156.26 amended by adding a subdivision to read: 156.27 Subd. 13. [CHANGES TO ICF/MR REIMBURSEMENT BEGINNING 156.28 OCTOBER 1, 1999.] (a) For the rate years beginning October 1, 156.29 1999, and October 1, 2000, the commissioner shall increase the 156.30 allowable operating cost per diems of ICFs/MR subject to 156.31 reimbursement under this section or Laws 1993, First Special 156.32 Session chapter 1, article 4, section 11, by three percent, and 156.33 shall not provide these facilities with inflation increases 156.34 under subdivision 3c, clause (1), Laws 1993, First Special 156.35 Session chapter 1, article 4, section 11, or section 256B.5012. 156.36 (b) It is the intention of the legislature that the 157.1 compensation packages of direct-care staff in ICFs/MR be 157.2 increased by three percent for each rate year. 157.3 Sec. 27. Minnesota Statutes 1998, section 256B.5011, 157.4 subdivision 1, is amended to read: 157.5 Subdivision 1. [IN GENERAL.] Effective October 1, 2000, 157.6 the commissioner shall implement aperformance-basedcontracting 157.7 system to replace the current method of setting total cost 157.8 payment rates under section 256B.501 and Minnesota Rules, parts 157.9 9553.0010 to 9553.0080. In determining prospective payment 157.10 rates of intermediate care facilities for persons with mental 157.11 retardation or related conditions, the commissioner shall index 157.12 each facility'stotaloperating payment rate by an inflation 157.13 factor as described insubdivision 3section 256B.5012. The 157.14 commissioner of finance shall include annual inflation 157.15 adjustments in operating costs for intermediate care facilities 157.16 for persons with mental retardation and related conditions as a 157.17 budget change request in each biennial detailed expenditure 157.18 budget submitted to the legislature under section 16A.11. 157.19 Sec. 28. Minnesota Statutes 1998, section 256B.5011, 157.20 subdivision 2, is amended to read: 157.21 Subd. 2. [CONTRACT PROVISIONS.] (a) The 157.22performance-basedservice contract with each intermediate care 157.23 facility must include provisions for: 157.24 (1) modifying payments when significant changes occur in 157.25 the needs of the consumers; 157.26 (2)monitoring service quality using performance indicators157.27that measure consumer outcomes;157.28(3)the establishment and use of continuous quality 157.29 improvement processes using the results attained through service 157.30 quality monitoring; 157.31(4) the annual reporting of facility statistical157.32information on all supervisory personnel, direct care personnel,157.33specialized support personnel, hours, wages and benefits,157.34staff-to-consumer ratios, and staffing patterns157.35 (3) appropriate and necessary statistical information 157.36 required by the commissioner; 158.1(5)(4) annual aggregate facility financial informationor158.2an annual certified audited financial statement, including a158.3balance sheet and income and expense statements for each158.4facility, if a certified audit was prepared; and 158.5(6)(5) additional requirementsand penaltiesfor 158.6 intermediate care facilities not meeting the standards set forth 158.7 in theperformance-basedservice contract. 158.8 (b) The commissioner shall recommend to the legislature by 158.9 January 15, 2000, whether the contract should include service 158.10 quality monitoring that may utilize performance indicators that 158.11 measure consumer and program outcomes. Performance measurement 158.12 shall not increase or duplicate regulatory requirements. 158.13 Sec. 29. [256B.5012] [ICF/MR PAYMENT SYSTEM 158.14 IMPLEMENTATION.] 158.15 Subdivision 1. [TOTAL PAYMENT RATE.] The total payment 158.16 rate effective October 1, 2000, for existing ICF/MR facilities 158.17 is the total of the operating payment rate and the property 158.18 payment rate plus inflation factors as defined in this section. 158.19 The initial rate year shall run from October 1, 2000, through 158.20 December 31, 2001. Subsequent rate years shall run from January 158.21 1 through December 31 beginning in the year 2002. 158.22 Subd. 2. [OPERATING PAYMENT RATE.] (a) The operating 158.23 payment rate equals the facility's total payment rate in effect 158.24 on September 30, 2000, minus the property rate. The operating 158.25 payment rate includes the special operating rate and the 158.26 efficiency incentive in effect as of September 30, 2000. The 158.27 operating payment shall be increased for each rate year by the 158.28 annual percentage change in the Consumer Price Index-All Items 158.29 (United States City Average) (CPI-U), as forecasted by Data 158.30 Resources, Inc., in the second quarter of the calendar year 158.31 preceding the start of each rate year. In the case of the 158.32 initial rate year beginning October 1, 2000, and continuing 158.33 through December 31, 2001, the percentage change shall be based 158.34 on the percentage change in the CPI-U for the 15-month period 158.35 beginning October 1, 2000, as forecast by Data Resources, Inc., 158.36 in the first quarter of 2000. 159.1 (b) Effective October 1, 2000, the operating payment rate 159.2 shall be adjusted to reflect an occupancy rate equal to 100 159.3 percent of the facility's capacity days as of September 30, 2000. 159.4 Subd. 3. [PROPERTY PAYMENT RATE.] (a) The property payment 159.5 rate effective October 1, 2000, is based on the facility's 159.6 property payment rate in effect on September 30, 2000. 159.7 Effective October 1, 2000, a facility minimum property rate of 159.8 $8.13 shall be applied to all existing ICF/MR facilities. 159.9 Facilities with a property payment rate effective September 30, 159.10 2000, which is below the minimum property rate shall receive an 159.11 increase effective October 1, 2000, equal to the difference 159.12 between the minimum property payment rate and the property 159.13 payment rate in effect as of September 30, 2000. Facilities 159.14 with a property payment rate at or above the minimum property 159.15 payment rate effective September 30, 2000, shall have no change 159.16 in their property payment rate effective October 1, 2000. 159.17 (b) Facility property payment rates shall be increased 159.18 annually for inflation, effective January 1, 2002. The increase 159.19 shall be based on each facility's property payment rate in 159.20 effect on September 30, 2000. Property payment rates effective 159.21 September 30, 2000, shall be arrayed from highest to lowest 159.22 before applying the minimum property payment rate in paragraph 159.23 (a). For property payment rates at the 90th percentile or 159.24 above, the annual inflation increase shall be zero. For 159.25 property payment rates below the 90th percentile but equal to or 159.26 above the 75th percentile, the annual inflation increase shall 159.27 be one percent. For property payment rates below the 75th 159.28 percentile, the annual inflation increase shall be two percent. 159.29 Sec. 30. [256B.5013] [PAYMENT RATE ADJUSTMENTS.] 159.30 Subdivision 1. [VARIABLE RATE ADJUSTMENTS.] When there is 159.31 a documented increase in the resource needs of a current ICF/MR 159.32 recipient or recipients, or a person is admitted to a facility 159.33 who requires additional resources, the county of financial 159.34 responsibility may approve an enhanced rate for one or more 159.35 persons in the facility. Resource needs directly attributable 159.36 to an individual that may be considered under the variable rate 160.1 adjustment include increased direct staff hours and other 160.2 specialized services, equipment, and human resources. The 160.3 guidelines in paragraphs (a) to (d) apply for the payment rate 160.4 adjustments under this section. 160.5 (a) All persons must be screened according to section 160.6 256B.092, subdivisions 7 and 8, prior to implementation of the 160.7 new payment system and annually thereafter. Screening data 160.8 shall be analyzed to develop broad profiles of the functional 160.9 characteristics of recipients. Three components shall be used 160.10 to distinguish recipients based on the following broad profiles: 160.11 (1) functional ability to care for and maintain one's own 160.12 basic needs; 160.13 (2) the intensity of any aggressive or destructive 160.14 behavior; and 160.15 (3) any history of obstructive behavior in combination with 160.16 a diagnosis of psychosis or neurosis. 160.17 The profile groups shall be used to link resource needs to 160.18 funding. The resource profile shall determine the level of 160.19 funding that may be authorized by the county. The county of 160.20 financial responsibility may approve a rate adjustment for an 160.21 individual. The commissioner shall recommend to the legislature 160.22 by January 15, 2000, a methodology using the profile groups to 160.23 determine variable rates. The variable rate must be applied to 160.24 expenses related to increased direct staff hours and other 160.25 specialized services, equipment, and human resources. This 160.26 variable rate component plus the facility's current operating 160.27 payment rate equals the individual's total operating payment 160.28 rate. 160.29 (b) A recipient must be screened by the county of financial 160.30 responsibility using the developmental disabilities screening 160.31 document completed immediately prior to approval of a variable 160.32 rate by the county. A comparison of the updated screening and 160.33 the previous screening must demonstrate an increase in resource 160.34 needs. 160.35 (c) Rate adjustments projected to exceed the authorized 160.36 funding level associated with the person's profile must be 161.1 submitted to the commissioner. 161.2 (d) The new rate approved through this process shall not be 161.3 averaged across all persons living at a facility but shall be an 161.4 individual rate. The county of financial responsibility must 161.5 indicate the projected length of time that the additional 161.6 funding may be needed by the individual. The need to continue 161.7 an individual variable rate must be reviewed at the end of the 161.8 anticipated duration of need but at least annually through the 161.9 completion of the developmental disabilities screening document. 161.10 Subd. 2. [OTHER PAYMENT RATE ADJUSTMENTS.] Facility total 161.11 payment rates may be adjusted by the host county, with 161.12 authorization from a statewide advisory committee, if, through 161.13 the local system needs planning process, it is determined that a 161.14 need exists to amend the package of purchased services with a 161.15 resulting increase or decrease in costs. Except as provided in 161.16 section 252.292, subdivision 4, if a provider demonstrates that 161.17 the loss of revenues caused by the downsizing or closure of a 161.18 facility cannot be absorbed by the facility based on current 161.19 operations, the host county or the provider may submit a request 161.20 to the statewide advisory committee for a facility base rate 161.21 adjustment. 161.22 Subd. 3. [RELOCATION.] (a) Property rates for all 161.23 facilities relocated after December 31, 1997, and up to and 161.24 including October 1, 2000, shall have the full annual costs of 161.25 relocation included in their October 1, 2000, property rate. 161.26 The property rate for the relocated home is subject to the costs 161.27 that were allowable under Minnesota Rules, chapter 9553, and the 161.28 investment per bed limitation for newly constructed or newly 161.29 established class B facilities. 161.30 (b) In ensuing years, all relocated homes shall be subject 161.31 to the investment per bed limit for newly constructed or newly 161.32 established class B facilities under section 256B.501, 161.33 subdivision 11. The limits shall be adjusted on January 1 of 161.34 each year by the percentage increase in the construction index 161.35 published by the Bureau of Economic Analysis of the United 161.36 States Department of Commerce in the Survey of Current Business 162.1 Statistics in October of the previous two years. Facilities 162.2 that are relocated within the investment per bed limit may be 162.3 approved by the statewide advisory committee. Costs for 162.4 relocation of a facility that exceed the investment per bed 162.5 limit must be absorbed by the facility. 162.6 (c) The payment rate shall take effect when the new 162.7 facility is licensed and certified by the commissioner of 162.8 health. Rates for facilities that are relocated after December 162.9 31, 1997, through October 1, 2000, shall be adjusted to reflect 162.10 the full inclusion of the relocation costs, subject to the 162.11 investment per bed limit in paragraph (b). The investment per 162.12 bed limit calculated rate for the year in which the facility was 162.13 relocated shall be the investment per bed limit used. 162.14 Subd. 4. [TEMPORARY RATE ADJUSTMENTS TO ADDRESS OCCUPANCY 162.15 AND ACCESS.] If a facility is operating at less than 100 percent 162.16 occupancy on September 30, 2000, or if a recipient is discharged 162.17 from a facility, the commissioner shall adjust the total payment 162.18 rate for up to 90 days for the remaining recipients. This 162.19 mechanism shall not be used to pay for hospital or therapeutic 162.20 leave days beyond the maximums allowed. Facility payment 162.21 adjustments exceeding 90 days to address a demonstrated need for 162.22 access must be submitted to the statewide advisory committee 162.23 with a local system needs assessment, plan, and budget for 162.24 review and recommendation. 162.25 Sec. 31. [256B.5014] [FINANCIAL REPORTING.] 162.26 All facilities shall maintain financial records and shall 162.27 provide annual income and expense reports to the commissioner of 162.28 human services on a form prescribed by the commissioner no later 162.29 than April 30 of each year in order to receive medical 162.30 assistance payments. The reports for the reporting year ending 162.31 December 31 must include: 162.32 (1) salaries and related expenses, including program 162.33 salaries, administrative salaries, other salaries, payroll 162.34 taxes, and fringe benefits; 162.35 (2) general operating expenses, including supplies, 162.36 training, repairs, purchased services and consultants, 163.1 utilities, food, licenses and fees, real estate taxes, 163.2 insurance, and working capital interest; 163.3 (3) property related costs, including depreciation, capital 163.4 debt interest, rent, and leases; and 163.5 (4) total annual resident days. 163.6 Sec. 32. [256B.5015] [PASS-THROUGH OF TRAINING AND 163.7 HABILITATION SERVICES COSTS.] 163.8 Training and habilitation services costs shall be paid as a 163.9 pass-through payment at the lowest rate paid for the comparable 163.10 services at that site under sections 252.40 to 252.46. The 163.11 pass-through payments for training and habilitation services 163.12 shall be paid separately by the commissioner and shall not be 163.13 included in the computation of the total payment rate. 163.14 Sec. 33. Minnesota Statutes 1998, section 256B.69, 163.15 subdivision 6a, is amended to read: 163.16 Subd. 6a. [NURSING HOME SERVICES.] (a) Notwithstanding 163.17 Minnesota Rules, part 9500.1457, subpart 1, item B, up to 90 163.18 days of nursing facility services as defined in section 163.19 256B.0625, subdivision 2, which are provided in a nursing 163.20 facility certified by the Minnesota department of health for 163.21 services provided and eligible for payment under Medicaid, shall 163.22 be covered under the prepaid medical assistance program for 163.23 individuals who are not residing in a nursing facility at the 163.24 time of enrollment in the prepaid medical assistance 163.25 program.Liability for coverage of nursing facility services by163.26a participating health plan is limited to 365 days for any163.27person enrolled under the prepaid medical assistance program.163.28 (b) For individuals enrolled in the Minnesota senior health 163.29 options project authorized under subdivision 23, nursing 163.30 facility services shall be covered according to the terms and 163.31 conditions of the federal waiver governing that demonstration 163.32 project. 163.33 Sec. 34. Minnesota Statutes 1998, section 256B.69, 163.34 subdivision 6b, is amended to read: 163.35 Subd. 6b. [ELDERLY WAIVER SERVICES.]Notwithstanding163.36Minnesota Rules, part 9500.1457, subpart 1, item C, elderly164.1waiver services shall be covered under the prepaid medical164.2assistance program for all individuals who are eligible164.3according to section 256B.0915.For individuals enrolled in the 164.4 Minnesota senior health options project authorized under 164.5 subdivision 23, elderly waiver services shall be covered 164.6 according to the terms and conditions of the federal waiver 164.7 governing that demonstration project. 164.8 Sec. 35. Minnesota Statutes 1998, section 256I.04, 164.9 subdivision 3, is amended to read: 164.10 Subd. 3. [MORATORIUM ON THE DEVELOPMENT OF GROUP 164.11 RESIDENTIAL HOUSING BEDS.] (a) County agencies shall not enter 164.12 into agreements for new group residential housing beds with 164.13 total rates in excess of the MSA equivalent rate except: (1) 164.14 for group residential housing establishments meeting the 164.15 requirements of subdivision 2a, clause (2) with department 164.16 approval; (2) for group residential housing establishments 164.17 licensed under Minnesota Rules, parts 9525.0215 to 9525.0355, 164.18 provided the facility is needed to meet the census reduction 164.19 targets for persons with mental retardation or related 164.20 conditions at regional treatment centers; (3) to ensure 164.21 compliance with the federal Omnibus Budget Reconciliation Act 164.22 alternative disposition plan requirements for inappropriately 164.23 placed persons with mental retardation or related conditions or 164.24 mental illness; (4) up to 80 beds in a single, specialized 164.25 facility located in Hennepin county that will provide housing 164.26 for chronic inebriates who are repetitive users of 164.27 detoxification centers and are refused placement in emergency 164.28 shelters because of their state of intoxication, and planning 164.29 for the specialized facility must have been initiated before 164.30 July 1, 1991, in anticipation of receiving a grant from the 164.31 housing finance agency under section 462A.05, subdivision 20a, 164.32 paragraph (b);or(5) notwithstanding the provisions of 164.33 subdivision 2a, for up to 190 supportive housing units in Anoka, 164.34 Dakota, Hennepin, or Ramsey county for homeless adults with a 164.35 mental illness, a history of substance abuse, or human 164.36 immunodeficiency virus or acquired immunodeficiency syndrome. 165.1 For purposes of this section, "homeless adult" means a person 165.2 who is living on the street or in a shelter or discharged from a 165.3 regional treatment center, community hospital, or residential 165.4 treatment program and has no appropriate housing available and 165.5 lacks the resources and support necessary to access appropriate 165.6 housing. At least 70 percent of the supportive housing units 165.7 must serve homeless adults with mental illness, substance abuse 165.8 problems, or human immunodeficiency virus or acquired 165.9 immunodeficiency syndrome who are about to be or, within the 165.10 previous six months, has been discharged from a regional 165.11 treatment center, or a state-contracted psychiatric bed in a 165.12 community hospital, or a residential mental health or chemical 165.13 dependency treatment program. If a person meets the 165.14 requirements of subdivision 1, paragraph (a), and receives a 165.15 federal or state housing subsidy, the group residential housing 165.16 rate for that person is limited to the supplementary rate under 165.17 section 256I.05, subdivision 1a, and is determined by 165.18 subtracting the amount of the person's countable income that 165.19 exceeds the MSA equivalent rate from the group residential 165.20 housing supplementary rate. A resident in a demonstration 165.21 project site who no longer participates in the demonstration 165.22 program shall retain eligibility for a group residential housing 165.23 payment in an amount determined under section 256I.06, 165.24 subdivision 8, using the MSA equivalent rate. Service funding 165.25 under section 256I.05, subdivision 1a, will end June 30, 1997, 165.26 if federal matching funds are available and the services can be 165.27 provided through a managed care entity. If federal matching 165.28 funds are not available, then service funding will continue 165.29 under section 256I.05, subdivision 1a.; or (6) for group 165.30 residential housing beds in settings meeting the requirements of 165.31 subdivision 2, paragraph (a), clause (3), which are used 165.32 exclusively for recipients receiving home and community-based 165.33 waiver services under sections 256B.0915, 256B.092, subdivision 165.34 5, 256B.093, and 256B.49, and who resided in a nursing facility 165.35 for the six months immediately prior to the month of entry into 165.36 the group residential housing setting. The group residential 166.1 housing rate for these beds must be set so that the monthly 166.2 group residential housing payment for an individual occupying 166.3 the bed when combined with the nonfederal share of services 166.4 delivered under the waiver for that person does not exceed the 166.5 nonfederal share of the monthly medical assistance payment made 166.6 for the person to the nursing facility in which the person 166.7 resided prior to entry into the group residential housing 166.8 establishment. The rate may not exceed the MSA equivalent rate 166.9 plus $426.37 for any case. 166.10 (b) A county agency may enter into a group residential 166.11 housing agreement for beds with rates in excess of the MSA 166.12 equivalent rate in addition to those currently covered under a 166.13 group residential housing agreement if the additional beds are 166.14 only a replacement of beds with rates in excess of the MSA 166.15 equivalent rate which have been made available due to closure of 166.16 a setting, a change of licensure or certification which removes 166.17 the beds from group residential housing payment, or as a result 166.18 of the downsizing of a group residential housing setting. The 166.19 transfer of available beds from one county to another can only 166.20 occur by the agreement of both counties. 166.21 Sec. 36. Minnesota Statutes 1998, section 256I.05, 166.22 subdivision 1, is amended to read: 166.23 Subdivision 1. [MAXIMUM RATES.] Monthly room and board 166.24 rates negotiated by a county agency for a recipient living in 166.25 group residential housing must not exceed the MSA equivalent 166.26 rate specified under section 256I.03, subdivision 5, with the 166.27 exception that a county agency may negotiate a supplementary 166.28 room and board rate that exceeds the MSA equivalent rateby up166.29to $426.37for recipients of waiver services under title XIX of 166.30 the Social Security Act. This exception is subject to the 166.31 following conditions: 166.32 (1)that the Secretary of Health and Human Services has not166.33approved a state request to include room and board costs which166.34exceed the MSA equivalent rate in an individual's set of waiver166.35services under title XIX of the Social Security Act; or166.36(2) that the Secretary of Health and Human Services has167.1approved the inclusion of room and board costs which exceed the167.2MSA equivalent rate, but in an amount that is insufficient to167.3cover costs which are included in a group residential housing167.4agreement in effect on June 30, 1994; and167.5(3) the amount of the rate that is above the MSA equivalent167.6rate has been approved by the commissionerthe setting is 167.7 licensed by the commissioner of human services under Minnesota 167.8 Rules, parts 9555.5050 to 9555.6265; 167.9 (2) the setting is not the primary residence of the license 167.10 holder and in which the license holder is not the primary 167.11 caregiver; and 167.12 (3) the average supplementary room and board rate in a 167.13 county for a calendar year may not exceed the average 167.14 supplementary room and board rate for that county in effect on 167.15 January 1, 2000. If a county has not negotiated supplementary 167.16 room and board rates for any facilities located in the county as 167.17 of January 1, 2000, or has an average supplemental room and 167.18 board rate under $100 per person as of January 1, 2000, it may 167.19 submit a supplementary room and board rate request with budget 167.20 information for a facility to the commissioner for approval. 167.21 The county agency may at any time negotiate a higher or lower 167.22 room and board rate than the average supplementary room and 167.23 board ratethat would otherwise be paid under this subdivision. 167.24 Sec. 37. Minnesota Statutes 1998, section 256I.05, 167.25 subdivision 1a, is amended to read: 167.26 Subd. 1a. [SUPPLEMENTARY SERVICE RATES.] (a) Subject to 167.27 the provisions of section 256I.04, subdivision 3, in addition to 167.28 the room and board rate specified in subdivision 1, the county 167.29 agency may negotiate a payment not to exceed $426.37 for other 167.30 services necessary to provide room and board provided by the 167.31 group residence if the residence is licensed by or registered by 167.32 the department of health, or licensed by the department of human 167.33 services to provide services in addition to room and board, and 167.34 if the provider of services is not also concurrently receiving 167.35 funding for services for a recipient under a home and 167.36 community-based waiver under title XIX of the Social Security 168.1 Act; or funding from the medical assistance program under 168.2 section 256B.0627, subdivision 4, for personal care services for 168.3 residents in the setting; or residing in a setting which 168.4 receives funding under Minnesota Rules, parts 9535.2000 to 168.5 9535.3000. If funding is available for other necessary services 168.6 through a home and community-based waiver, or personal care 168.7 services under section 256B.0627, subdivision 4, then the GRH 168.8 rate is limited to the rate set in subdivision 1. Unless 168.9 otherwise provided in law, in no case may the supplementary 168.10 service rate plus the supplementary room and board rate exceed 168.11 $426.37. The registration and licensure requirement does not 168.12 apply to establishments which are exempt from state licensure 168.13 because they are located on Indian reservations and for which 168.14 the tribe has prescribed health and safety requirements. 168.15 Service payments under this section may be prohibited under 168.16 rules to prevent the supplanting of federal funds with state 168.17 funds. The commissioner shall pursue the feasibility of 168.18 obtaining the approval of the Secretary of Health and Human 168.19 Services to provide home and community-based waiver services 168.20 under title XIX of the Social Security Act for residents who are 168.21 not eligible for an existing home and community-based waiver due 168.22 to a primary diagnosis of mental illness or chemical dependency 168.23 and shall apply for a waiver if it is determined to be 168.24 cost-effective. 168.25 (b) The commissioner is authorized to make cost-neutral 168.26 transfers from the GRH fund for beds under this section to other 168.27 funding programs administered by the department after 168.28 consultation with the county or counties in which the affected 168.29 beds are located. The commissioner may also make cost-neutral 168.30 transfers from the GRH fund to county human service agencies for 168.31 beds permanently removed from the GRH census under a plan 168.32 submitted by the county agency and approved by the 168.33 commissioner. The commissioner shall report the amount of any 168.34 transfers under this provision annually to the legislature. 168.35 (c) The provisions of paragraph (b) do not apply to a 168.36 facility that has its reimbursement rate established under 169.1 section 256B.431, subdivision 4, paragraph (c). 169.2 Sec. 38. Minnesota Statutes 1998, section 256I.05, is 169.3 amended by adding a subdivision to read: 169.4 Subd. 1e. [SUPPLEMENTARY RATE FOR CERTAIN FACILITIES.] 169.5 Notwithstanding the provisions of subdivisions 1a and 1c, 169.6 beginning July 1, 1999, a county agency shall negotiate a 169.7 supplementary rate in addition to the rate specified in 169.8 subdivision 1, up to the amount specified in subdivision 1a, for 169.9 a group residential housing provider that: 169.10 (1) is located in Hennepin county and has had a group 169.11 residential housing contract with the county since June 1996; 169.12 (2) operates in three separate locations a 56-bed facility, 169.13 a 40-bed facility, and a 30-bed facility; and 169.14 (3) serves a chemically dependent clientele, providing 24 169.15 hours per day supervision and limiting a resident's maximum 169.16 length of stay to 13 months out of a consecutive 24-month period. 169.17 Sec. 39. Laws 1995, chapter 207, article 3, section 21, is 169.18 amended to read: 169.19 Sec. 21. [FACILITY CERTIFICATION.] 169.20 Notwithstanding Minnesota Statutes, section 252.291, 169.21 subdivisions 1 and 2, the commissioner of health shall inspect 169.22 to certify a large community-based facility currently licensed 169.23 under Minnesota Rules, parts 9525.0215 to 9525.0355, for more 169.24 than 16 beds and located in Northfield. The facility may be 169.25 certified for up to 44 beds. The commissioner of health must 169.26 inspect to certify the facility as soon as possible after the 169.27 effective date of this section. The commissioner of human 169.28 services shall work with the facility and affected counties to 169.29 relocate any current residents of the facility who do not meet 169.30 the admission criteria for an ICF/MR. Until January 1, 1999, in 169.31 order to fund the ICF/MR services and relocations of current 169.32 residents authorized, the commissioner of human services may 169.33 transfer on a quarterly basis to the medical assistance account 169.34 from each affected county's community social service allocation, 169.35 an amount equal to the state share of medical assistance 169.36 reimbursement for the residential and day habilitation services 170.1 funded by medical assistance and provided to clients for whom 170.2 the county is financially responsible. After January 1, 1999, 170.3 the commissioner of human services shall fund the services under 170.4 the state medical assistance program and may transfer on a 170.5 quarterly basis to the medical assistance account from each 170.6 affected county's community social service allocation, an amount 170.7 equal to one-half of the state share of medical assistance 170.8 reimbursement for the residential and day habilitation services 170.9 funded by medical assistance and provided to clients for whom 170.10 the county is financially responsible. For nonresidents of 170.11 Minnesota seeking admission to the facility, Rice county shall 170.12 be notified in order to assure that appropriate funding is 170.13 guaranteed from their state or country of residence. 170.14 Sec. 40. [DEADLINE EXTENSION.] 170.15 Notwithstanding Minnesota Statutes, section 144A.073, 170.16 subdivision 3, the commissioner of health shall extend approval 170.17 to May 31, 2000, for a total replacement of a 96-bed nursing 170.18 home located in Carlton county previously approved under 170.19 Minnesota Statutes, section 144A.073. 170.20 Sec. 41. [ICF/MR REIMBURSEMENT EFFECTIVE OCTOBER 1, 1999.] 170.21 (a) For the rate year beginning October 1, 1999, the 170.22 commissioner of human services shall exempt an intermediate care 170.23 facility for persons with mental retardation from reductions to 170.24 the payment rates under Minnesota Statutes, section 256B.501, 170.25 subdivision 5b, paragraph (d), clause (6), if the facility: 170.26 (1) has had a settle-up payment rate established in the 170.27 reporting year preceding the rate year for the one-time rate 170.28 adjustment; 170.29 (2) is a newly established facility; 170.30 (3) is an A to B conversion that has been converted under 170.31 Minnesota Statutes, section 252.292, since rate year 1990; 170.32 (4) has a payment rate subject to a community conversion 170.33 project under Minnesota Statutes, section 252.292; 170.34 (5) has a payment rate established under Minnesota 170.35 Statutes, section 245A.12 or 245A.13; or 170.36 (6) is a facility created by the relocation of more than 25 171.1 percent of the capacity of a related facility during the 171.2 reporting year. 171.3 (b) Notwithstanding any contrary provision in Minnesota 171.4 Statutes, section 256B.501, for the rate year beginning October 171.5 1, 1999, the commissioner of human services shall, for purposes 171.6 of the spend-up limit, array facilities within each grouping 171.7 established under Minnesota Statutes, section 256B.501, 171.8 subdivision 5b, paragraph (d), clause (4), by each facility's 171.9 cost per resident day. A facility's cost per resident day shall 171.10 be determined by dividing its allowable historical general 171.11 operating cost for the reporting year by the facility's resident 171.12 days for the reporting year. Facilities with a cost per 171.13 resident day at or above the median shall be limited to the 171.14 lesser of: 171.15 (1) the current reporting year's cost per resident day; or 171.16 (2) the prior report year's cost per resident day plus the 171.17 inflation factor established under Minnesota Statutes, section 171.18 256B.501, subdivision 3c, clause (2), increased by three 171.19 percentage points. In no case shall the amount of this 171.20 reduction exceed: (i) three percent for a facility with a 171.21 licensed capacity greater than 16 beds; (ii) two percent for a 171.22 facility with a licensed capacity of nine to 16 beds; and (iii) 171.23 one percent for a facility with a licensed capacity of eight or 171.24 fewer beds. 171.25 (c) The commissioner shall not apply the limits established 171.26 under Minnesota Statutes, section 256B.501, subdivision 5b, 171.27 paragraph (d), clause (8), for the rate year beginning October 171.28 1, 1999. 171.29 (d) Notwithstanding paragraphs (b) and (c), the 171.30 commissioner must utilize facility payment rates based on the 171.31 laws in effect for October 1, 1998, payment rates and use the 171.32 resulting allowable operating cost per diems as the basis for 171.33 the spend-up limits for the rate year beginning October 1, 1999. 171.34 Sec. 42. [IMMEDIATE JEOPARDY FINES.] 171.35 (a) The commissioner of health shall implement this section 171.36 using existing budget resources of the Minnesota department of 172.1 health. 172.2 (b) The commissioner of health shall reimburse the 172.3 following nursing facilities for fines paid by the facility as a 172.4 result of immediate jeopardy citations issued by the 172.5 commissioner from April 1, 1998, through February 3, 1999: Burr 172.6 Oak Manor in Austin, MN for $70,525; Fairview Nursing Home in 172.7 Dodge Center, MN for $21,550; Madison Lutheran Home in Madison, 172.8 MN for $13,650; Maplewood Care Center in Maplewood, MN for 172.9 $29,770; and St. Francis Home in Breckenridge, MN for $7,442.50. 172.10 (c) The commissioner of health shall pay the Health Care 172.11 Financing Administration (HCFA) directly for fines resulting 172.12 from immediate jeopardy citations issued by the commissioner 172.13 from April 1, 1998, through February 3, 1999 to the following 172.14 facilities: Arnold Memorial Health Care in Adrian, MN for 172.15 $26,650; Colonial Manor in Balatin, MN for $10,790; the Lutheran 172.16 Home in Caledonia, MN for $127,450; Nopeming Nursing Home in 172.17 Duluth, MN for $28,250; Samaritan Bethany on 8th in Rochester, 172.18 MN for $43,350; Shakopee Friendship Village in Shakopee, MN for 172.19 $22,250; Stillwater Good Samaritan in Stillwater, MN for 172.20 $22,500; Trevilla of Golden Valley in Golden Valley, MN for 172.21 $15,665; and Walker Methodist Health Care in Minneapolis, MN for 172.22 $39,000. If a facility listed in this paragraph pays the 172.23 immediate jeopardy fine to the HCFA prior to the effective date 172.24 of this provision, the commissioner of health shall directly 172.25 reimburse the facility for the amount of the fine paid. A 172.26 facility listed in this paragraph that has appealed their fine 172.27 may request that the commissioner of health delay payment to the 172.28 HCFA, until the appeal is decided. 172.29 (d) The commissioner of health shall reimburse Stewartville 172.30 Care Center in Stewartville, MN for any loss of revenue 172.31 resulting from a denial of payment for new admissions, if this 172.32 remedy is imposed by the HCFA as a result of findings from the 172.33 surveys by the Minnesota department of health on January 11 and 172.34 12, 1999. 172.35 (e) If the fine amounts listed in paragraphs (b) or (c) are 172.36 adjusted by the HCFA, the commissioner shall reimburse the 173.1 facility or pay the HCFA the adjusted fine amount. 173.2 (Effective Date: Section 42 (immediate jeopardy fines) is 173.3 effective the day following final enactment.) 173.4 Sec. 43. [ICF/MR SERVICE RECONFIGURATION PROJECT.] 173.5 (a) The commissioner of human services may authorize a 173.6 project to reconfigure two existing intermediate care facilities 173.7 for persons with mental retardation or related conditions 173.8 (ICFs/MR) located on the same campus in Carver county and 173.9 totaling 60 licensed beds in one 46-bed facility and one 14-bed 173.10 facility. The reconfiguration project will involve the 173.11 relocation of up to six beds to a six-bed ICF/MR. The remaining 173.12 two ICFs/MR shall consist of one 34-bed ICF/MR and one ten-bed 173.13 ICF/MR. 173.14 (b) The project shall include the development of 173.15 alternative home and community-based services for individuals 173.16 relocated from the existing facilities. In conjunction with 173.17 this project, two beds in the 34-bed facility shall be reserved 173.18 for temporary care services for individuals receiving 173.19 alternative home and community-based services. The ICF/MR may 173.20 seek county approval to modify its need determinations in order 173.21 to serve fewer clients, or to provide additional beds for 173.22 temporary care services. 173.23 (c) The project must be approved by the commissioner under 173.24 Minnesota Statutes, section 252.28, and must include criteria 173.25 for determining how individuals are selected for alternative 173.26 services and the use of a request for proposal process in 173.27 selecting vendors for the alternative services. The 173.28 commissioner is authorized to develop the two additional beds 173.29 required, and set aside waivered service slots as needed for 173.30 individuals choosing alternative home and community-based 173.31 services. 173.32 (d) Upon approval of the project, the following additional 173.33 conditions shall apply to rate setting: 173.34 (1) the two existing facilities' aggregate 173.35 investment-per-bed limits in effect before the downsizing shall 173.36 be the investment-per-bed limit after the downsizing; 174.1 (2) the ten-bed and the 34-bed facilities shall be eligible 174.2 for a one-time rate adjustment to be negotiated with the 174.3 commissioner taking into consideration estimated excess revenues 174.4 available from the six-bed facility; 174.5 (3) the relocated six-bed facility shall receive the 174.6 payment rates established for the former 46-bed facility until 174.7 each facility files a cost report for a period of five months or 174.8 longer ending on December 31 following their opening and those 174.9 reports are desk audited by the commissioner. The two remaining 174.10 facilities shall file their regularly scheduled annual cost 174.11 reports; 174.12 (4) all facilities are exempt from the spend-up and high 174.13 cost limits in Minnesota Statutes, section 256B.501, subdivision 174.14 5b, for the rate year following the first cost report submitted 174.15 under clause (3); and 174.16 (5) the maintenance limit for the 34-bed facility shall be 174.17 established using the methodology in Minnesota Statutes, section 174.18 256B.501, subdivision 5d. The maintenance limit for the ten-bed 174.19 facility shall be adjusted by the same ratio used to adjust the 174.20 34-bed facility's maintenance limit. 174.21 Sec. 44. [GROUP RESIDENTIAL HOUSING STUDY.] 174.22 The commissioner of human services shall submit to the 174.23 legislature by November 1, 2000, a study of the cost of 174.24 providing housing for individuals eligible for group residential 174.25 housing payments and an analysis of the relationship of the 174.26 costs to market rate housing costs in a representative number of 174.27 regions in the state. 174.28 Sec. 45. [STATE LICENSURE CONFLICTS WITH FEDERAL 174.29 REGULATIONS.] 174.30 Notwithstanding the provisions of Minnesota Rules, part 174.31 4658.0520, an incontinent resident must be checked according to 174.32 a specific time interval written in the resident's care plan. 174.33 (Effective Date: Section 45 (state licensure conflicts with 174.34 federal regulations) is effective the day following final 174.35 enactment.) 174.36 Sec. 46. [REPEALER.] 175.1 (a) Minnesota Statutes 1998, sections 144.0723; and 175.2 256B.5011, subdivision 3, are repealed. 175.3 (b) Minnesota Statutes 1998, section 256B.501, subdivision 175.4 3g, is repealed effective October 1, 2000. 175.5 (c) Minnesota Statutes 1998, section 256B.434, subdivision 175.6 17, is repealed effective July 1, 1999. 175.7 (d) Minnesota Statutes 1998, section 144A.33, is repealed 175.8 effective July 1, 2000. 175.9 Sec. 47. [EFFECTIVE DATE.] 175.10 When preparing the health and human services conference 175.11 committee report for adoption by the legislature, the revisor 175.12 shall combine all the bracketed effective date notations into 175.13 this effective date section. 175.14 ARTICLE 4 175.15 HEALTH CARE PROGRAMS 175.16 Section 1. Minnesota Statutes 1998, section 122A.09, 175.17 subdivision 4, is amended to read: 175.18 Subd. 4. [LICENSE AND RULES.] (a) The board must adopt 175.19 rules to license public school teachers and interns subject to 175.20 chapter 14. 175.21 (b) The board must adopt rules requiring a person to 175.22 successfully complete a skills examination in reading, writing, 175.23 and mathematics as a requirement for initial teacher licensure. 175.24 Such rules must require college and universities offering a 175.25 board approved teacher preparation program to provide remedial 175.26 assistance to persons who did not achieve a qualifying score on 175.27 the skills examination, including those for whom English is a 175.28 second language. 175.29 (c) The board must adopt rules to approve teacher 175.30 preparation programs. 175.31 (d) The board must provide the leadership and shall adopt 175.32 rules for the redesign of teacher education programs to 175.33 implement a research based, results-oriented curriculum that 175.34 focuses on the skills teachers need in order to be effective. 175.35 The board shall implement new systems of teacher preparation 175.36 program evaluation to assure program effectiveness based on 176.1 proficiency of graduates in demonstrating attainment of program 176.2 outcomes. 176.3 (e) The board must adopt rules requiring successful 176.4 completion of an examination of general pedagogical knowledge 176.5 and examinations of licensure-specific teaching skills. The 176.6 rules shall be effective on the dates determined by the board, 176.7 but not later than July 1, 1999. 176.8 (f) The board must adopt rules requiring teacher educators 176.9 to work directly with elementary or secondary school teachers in 176.10 elementary or secondary schools to obtain periodic exposure to 176.11 the elementary or secondary teaching environment. 176.12 (g) The board must grant licenses to interns and to 176.13 candidates for initial licenses. 176.14 (h) The board must design and implement an assessment 176.15 system which requires a candidate for an initial license and 176.16 first continuing license to demonstrate the abilities necessary 176.17 to perform selected, representative teaching tasks at 176.18 appropriate levels. 176.19 (i) The board must receive recommendations from local 176.20 committees as established by the board for the renewal of 176.21 teaching licenses. 176.22 (j) The board must grant life licenses to those who qualify 176.23 according to requirements established by the board, and suspend 176.24 or revoke licenses pursuant to sections 122A.20 and 214.10. The 176.25 board must not establish any expiration date for application for 176.26 life licenses. 176.27 (k) In adopting rules to license public school teachers who 176.28 provide health-related services for disabled children, the board 176.29 shall adopt rules consistent with license or registration 176.30 requirements of the commissioner of health and the 176.31 health-related boards who license personnel who perform similar 176.32 services outside of the school. 176.33 Sec. 2. Minnesota Statutes 1998, section 125A.08, is 176.34 amended to read: 176.35 125A.08 [SCHOOL DISTRICT OBLIGATIONS.] 176.36 (a) As defined in this section, to the extent required by 177.1 federal law as of July 1,19992000, every district must ensure 177.2 the following: 177.3 (1) all students with disabilities are provided the special 177.4 instruction and services which are appropriate to their needs. 177.5 Where the individual education plan team has determined 177.6 appropriate goals and objectives based on the student's needs, 177.7 including the extent to which the student can be included in the 177.8 least restrictive environment, and where there are essentially 177.9 equivalent and effective instruction, related services, or 177.10 assistive technology devices available to meet the student's 177.11 needs, cost to the district may be among the factors considered 177.12 by the team in choosing how to provide the appropriate services, 177.13 instruction, or devices that are to be made part of the 177.14 student's individual education plan. The individual education 177.15 plan team shall consider and may authorize services covered by 177.16 medical assistance according to section 256B.0625, subdivision 177.17 26. The student's needs and the special education instruction 177.18 and services to be provided must be agreed upon through the 177.19 development of an individual education plan. The plan must 177.20 address the student's need to develop skills to live and work as 177.21 independently as possible within the community. By grade 9 or 177.22 age 14, the plan must address the student's needs for transition 177.23 from secondary services to post-secondary education and 177.24 training, employment, community participation, recreation, and 177.25 leisure and home living. In developing the plan, districts must 177.26 inform parents of the full range of transitional goals and 177.27 related services that should be considered. The plan must 177.28 include a statement of the needed transition services, including 177.29 a statement of the interagency responsibilities or linkages or 177.30 both before secondary services are concluded; 177.31 (2) children with a disability under age five and their 177.32 families are provided special instruction and services 177.33 appropriate to the child's level of functioning and needs; 177.34 (3) children with a disability and their parents or 177.35 guardians are guaranteed procedural safeguards and the right to 177.36 participate in decisions involving identification, assessment 178.1 including assistive technology assessment, and educational 178.2 placement of children with a disability; 178.3 (4) eligibility and needs of children with a disability are 178.4 determined by an initial assessment or reassessment, which may 178.5 be completed using existing data under United States Code, title 178.6 20, section 33, et seq.; 178.7 (5) to the maximum extent appropriate, children with a 178.8 disability, including those in public or private institutions or 178.9 other care facilities, are educated with children who are not 178.10 disabled, and that special classes, separate schooling, or other 178.11 removal of children with a disability from the regular 178.12 educational environment occurs only when and to the extent that 178.13 the nature or severity of the disability is such that education 178.14 in regular classes with the use of supplementary services cannot 178.15 be achieved satisfactorily; 178.16 (6) in accordance with recognized professional standards, 178.17 testing and evaluation materials, and procedures used for the 178.18 purposes of classification and placement of children with a 178.19 disability are selected and administered so as not to be 178.20 racially or culturally discriminatory; and 178.21 (7) the rights of the child are protected when the parents 178.22 or guardians are not known or not available, or the child is a 178.23 ward of the state. 178.24 (b) For paraprofessionals employed to work in programs for 178.25 students with disabilities, the school board in each district 178.26 shall ensure that: 178.27 (1) before or immediately upon employment, each 178.28 paraprofessional develops sufficient knowledge and skills in 178.29 emergency procedures, building orientation, roles and 178.30 responsibilities, confidentiality, vulnerability, and 178.31 reportability, among other things, to begin meeting the needs of 178.32 the students with whom the paraprofessional works; 178.33 (2) annual training opportunities are available to enable 178.34 the paraprofessional to continue to further develop the 178.35 knowledge and skills that are specific to the students with whom 178.36 the paraprofessional works, including understanding 179.1 disabilities, following lesson plans, and implementing follow-up 179.2 instructional procedures and activities; and 179.3 (3) a districtwide process obligates each paraprofessional 179.4 to work under the ongoing direction of a licensed teacher and, 179.5 where appropriate and possible, the supervision of a school 179.6 nurse. 179.7 (Effective Date: Section 2 (125A.08) is effective July 1, 179.8 2000.) 179.9 Sec. 3. Minnesota Statutes 1998, section 125A.21, 179.10 subdivision 1, is amended to read: 179.11 Subdivision 1. [OBLIGATION TO PAY.] Nothing in sections 179.12 125A.03 to 125A.24 and 125A.65 relieves an insurer or similar 179.13 third party from an otherwise valid obligation to pay, or 179.14 changes the validity of an obligation to pay, for services 179.15 rendered to a child with a disability, and the child's family. 179.16 A school district shall pay the nonfederal share of medical 179.17 assistance services provided according to section 256B.0625, 179.18 subdivision 26. Eligible expenditures must not be made from 179.19 federal funds or funds used to match other federal funds. Any 179.20 federal disallowances are the responsibility of the school 179.21 district. A school district may pay or reimburse copayments, 179.22 coinsurance, deductibles, and other enrollee cost-sharing 179.23 amounts, on behalf of the student or family, in connection with 179.24 health and related services provided under an individual 179.25 educational plan. 179.26 (Effective Date: Section 3 (125A.21, subdivision 1) is 179.27 effective July 1, 2000.) 179.28 Sec. 4. Minnesota Statutes 1998, section 125A.74, 179.29 subdivision 1, is amended to read: 179.30 Subdivision 1. [ELIGIBILITY.] A district may enroll as a 179.31 provider in the medical assistance program and receive medical 179.32 assistance payments for covered special education services 179.33 provided to persons eligible for medical assistance under 179.34 chapter 256B. To receive medical assistance payments, the 179.35 district must pay the nonfederal share of medical assistance 179.36 services provided according to section 256B.0625, subdivision 180.1 26, and comply with relevant provisions of state and federal 180.2 statutes and regulations governing the medical assistance 180.3 program. 180.4 (Effective Date: Section 4 (125A.74, subdivision 1) is 180.5 effective July 1, 2000.) 180.6 Sec. 5. Minnesota Statutes 1998, section 125A.74, 180.7 subdivision 2, is amended to read: 180.8 Subd. 2. [FUNDING.] A district that provides a covered 180.9 service to an eligible person and complies with relevant 180.10 requirements of the medical assistance program is entitled to 180.11 receive payment for theservice provided, including thatportion 180.12 of thepaymentservices that will subsequently be reimbursed by 180.13 the federal government, in the same manner as other medical 180.14 assistance providers.The school district is not required to180.15provide matching funds or pay part of the costs of the service,180.16as long as the rate charged for the service does not exceed180.17medical assistance limits that apply to all medical assistance180.18providers.180.19 (Effective Date: Section 5 (125A.74, subdivision 2) is 180.20 effective July 1, 2000.) 180.21 Sec. 6. Minnesota Statutes 1998, section 125A.744, 180.22 subdivision 3, is amended to read: 180.23 Subd. 3. [IMPLEMENTATION.] Consistent with section 180.24 256B.0625, subdivision 26, school districts may enroll as 180.25 medical assistance providers or subcontractors and bill the 180.26 department of human services under the medical assistance fee 180.27 for service claims processing system for special education 180.28 services which are covered services under chapter 256B, which 180.29 are provided in the school setting for a medical assistance 180.30 recipient, and for whom the district has secured informed 180.31 consent consistent with section 13.05, subdivision 4, paragraph 180.32 (d), and section 256B.77, subdivision 2, paragraph (p), to bill 180.33 for each type of covered service. School districts shall be 180.34 reimbursed by the commissioner of human services for the federal 180.35 share of individual education plan health-related services that 180.36 qualify for reimbursement by medical assistance, minus five 181.1 percent retained by the commissioner of human services for 181.2 administrative costs. A school district is not eligible to 181.3 enroll as a home care provider or a personal care provider 181.4 organization for purposes of billing home care services under 181.5 section 256B.0627 until the commissioner of human services 181.6 issues a bulletin instructing county public health nurses on how 181.7 to assess for the needs of eligible recipients during school 181.8 hours. To use private duty nursing services or personal care 181.9 services at school, the recipient or responsible party must 181.10 provide written authorization in the care plan identifying the 181.11 chosen provider and the daily amount of services to be used at 181.12 school.Medical assistance services for those enrolled in a181.13prepaid health plan shall remain the responsibility of the181.14contracted health plan subject to their network, credentialing,181.15prior authorization, and determination of medical necessity181.16criteria. The commissioner of human services shall adjust181.17payments to health plans to reflect increased costs incurred by181.18health plans due to increased payments made to school districts181.19or new payment or delivery arrangements developed by health181.20plans in cooperation with school districts.181.21 (Effective Date: Section 6 (125A.744, subdivision 3) is 181.22 effective July 1, 2000.) 181.23 Sec. 7. Minnesota Statutes 1998, section 125A.76, 181.24 subdivision 2, is amended to read: 181.25 Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] (a) The special 181.26 education base revenue equals the sum of the following amounts 181.27 computed using base year data: 181.28 (1) 68 percent of the salary of each essential person 181.29 employed in the district's program for children with a 181.30 disability during the fiscal year, not including the share of 181.31 salaries for personnel providing health-related services counted 181.32 in clause (8), whether the person is employed by one or more 181.33 districts or a Minnesota correctional facility operating on a 181.34 fee-for-service basis; 181.35 (2) for the Minnesota state academy for the deaf or the 181.36 Minnesota state academy for the blind, 68 percent of the salary 182.1 of each instructional aide assigned to a child attending the 182.2 academy, if that aide is required by the child's individual 182.3 education plan; 182.4 (3) for special instruction and services provided to any 182.5 pupil by contracting with public, private, or voluntary agencies 182.6 other than school districts, in place of special instruction and 182.7 services provided by the district, 52 percent of the difference 182.8 between the amount of the contract and the basic revenue of the 182.9 district for that pupil for the fraction of the school day the 182.10 pupil receives services under the contract; 182.11 (4) for special instruction and services provided to any 182.12 pupil by contracting for services with public, private, or 182.13 voluntary agencies other than school districts, that are 182.14 supplementary to a full educational program provided by the 182.15 school district, 52 percent of the amount of the contract for 182.16 that pupil; 182.17 (5) for supplies and equipment purchased or rented for use 182.18 in the instruction of children with a disability, not including 182.19 the portion of the expenses for supplies and equipment used to 182.20 provide health-related services counted in clause (8), an amount 182.21 equal to 47 percent of the sum actually expended by the 182.22 district, or a Minnesota correctional facility operating on a 182.23 fee-for-service basis, but not to exceed an average of $47 in 182.24 any one school year for each child with a disability receiving 182.25 instruction; 182.26 (6) for fiscal years 1997 and later, special education base 182.27 revenue shall include amounts under clauses (1) to (5) for 182.28 special education summer programs provided during the base year 182.29 for that fiscal year;and182.30 (7) for fiscal years 1999 and later, the cost of providing 182.31 transportation services for children with disabilities under 182.32 section 123B.92, subdivision 1, paragraph (b), clause (4); and 182.33 (8) for fiscal years 2001 and later, the cost of salaries, 182.34 supplies and equipment, and other related costs actually 182.35 expended by the district for the nonfederal share of medical 182.36 assistance services according to section 256B.0625, subdivision 183.1 26. 183.2 (b) If requested by a school district operating a special 183.3 education program during the base year for less than the full 183.4 fiscal year, or a school district in which is located a 183.5 Minnesota correctional facility operating on a fee-for-service 183.6 basis for less than the full fiscal year, the commissioner may 183.7 adjust the base revenue to reflect the expenditures that would 183.8 have occurred during the base year had the program been operated 183.9 for the full fiscal year. 183.10 (c) Notwithstanding paragraphs (a) and (b), the portion of 183.11 a school district's base revenue attributable to a Minnesota 183.12 correctional facility operating on a fee-for-service basis 183.13 during the facility's first year of operating on a 183.14 fee-for-service basis shall be computed using current year data. 183.15 (Effective Date: Section 7 (125A.76, subdivision 2) is 183.16 effective July 1, 2000.) 183.17 Sec. 8. [127A.11] [MONITOR MEDICAL ASSISTANCE SERVICES FOR 183.18 DISABLED STUDENTS.] 183.19 The commissioner of children, families, and learning, in 183.20 cooperation with the commissioner of human services, shall 183.21 monitor the costs of health-related, special education services 183.22 provided by public schools. 183.23 Sec. 9. [214.045] [COORDINATION WITH BOARD OF TEACHING.] 183.24 The commissioner of health and the health-related licensing 183.25 boards must coordinate with the board of teaching when modifying 183.26 licensure requirements for regulated persons in order to have 183.27 consistent regulatory requirements for personnel who perform 183.28 services in schools. 183.29 Sec. 10. Minnesota Statutes 1998, section 245B.05, 183.30 subdivision 7, is amended to read: 183.31 Subd. 7. [REPORTING INCIDENTS AND EMERGENCIES.] The 183.32 license holder must report the following incidents to the 183.33 consumer's legal representative, caregiver, and case manager 183.34 within 24 hours of the occurrence, or within 24 hours of receipt 183.35 of the information: 183.36 (1) the death of a consumer; 184.1 (2) any medical emergencies, unexpected serious illnesses, 184.2 or accidents that require physician treatment or 184.3 hospitalization; 184.4 (3) a consumer's unauthorized absence; or 184.5 (4) any fires and incidents involving a law enforcement 184.6 agency. 184.7 Death or serious injury of the consumer must also be 184.8 reported to thecommissionerdepartment of human services 184.9 licensing division and the ombudsman, as required under sections 184.10 245.91 and 245.94, subdivision 2a. 184.11 Sec. 11. Minnesota Statutes 1998, section 245B.07, 184.12 subdivision 5, is amended to read: 184.13 Subd. 5. [STAFF ORIENTATION.] (a) Within 60 days of hiring 184.14 staff who provide direct service, the license holder must 184.15 provide 30 hours of staff orientation. Direct care staff must 184.16 complete 15 of the 30 hours orientation before providing any 184.17 unsupervised direct service to a consumer. If the staff person 184.18 has received orientation training from a license holder licensed 184.19 under this chapter, or provides semi-independent living services 184.20 only, the 15-hour requirement may be reduced to eight hours. 184.21 The total orientation of 30 hours may be reduced to 15 hours if 184.22 the staff person has previously received orientation training 184.23 from a license holder licensed under this chapter. 184.24 (b) The 30 hours of orientation must combine supervised 184.25 on-the-job training with coverage of the following material: 184.26 (1) review of the consumer's service plans and risk 184.27 management plan to achieve an understanding of the consumer as a 184.28 unique individual; 184.29 (2) review and instruction on the license holder's policies 184.30 and procedures, including their location and access; 184.31 (3) emergency procedures; 184.32 (4) explanation of specific job functions, including 184.33 implementing objectives from the consumer's individual service 184.34 plan; 184.35 (5) explanation of responsibilities related to section 184.36 245A.65; sections 626.556 and 626.557, governing maltreatment 185.1 reporting and service planning for children and vulnerable 185.2 adults; and section 245.825, governing use of aversive and 185.3 deprivation procedures; 185.4 (6) medication administration as it applies to the 185.5 individual consumer, from a training curriculum developed by a 185.6 health services professional described in section 245B.05, 185.7 subdivision 5, and when the consumer meets the criteria of 185.8 having overriding health care needs, then medication 185.9 administration taught by a health services professional. Staff 185.10 may administer medications only after they demonstrate the 185.11 ability, as defined in the license holder's medication 185.12 administration policy and procedures. Once a consumer with 185.13 overriding health care needs is admitted, staff will be provided 185.14 with remedial training as deemed necessary by the license holder 185.15 and the health professional to meet the needs of that consumer. 185.16 For purposes of this section, overriding health care needs 185.17 means a health care condition that affects the service options 185.18 available to the consumer because the condition requires: 185.19 (i) specialized or intensive medical or nursing 185.20 supervision; and 185.21 (ii) nonmedical service providers to adapt their services 185.22 to accommodate the health and safety needs of the consumer; 185.23 (7) consumer rights; and 185.24 (8) other topics necessary as determined by the consumer's 185.25 individual service plan or other areas identified by the license 185.26 holder. 185.27 (c) The license holder must document each employee's 185.28 orientation received. 185.29 Sec. 12. Minnesota Statutes 1998, section 245B.07, 185.30 subdivision 8, is amended to read: 185.31 Subd. 8. [POLICIES AND PROCEDURES.] The license holder 185.32 must develop and implement the policies and procedures in 185.33 paragraphs (1) to (3). 185.34 (1) policies and procedures that promote consumer health 185.35 and safety by ensuring: 185.36 (i) consumer safety in emergency situations as identified 186.1 in section 245B.05, subdivision 7; 186.2 (ii) consumer health through sanitary practices; 186.3 (iii) safe transportation, when the license holder is 186.4 responsible for transportation of consumers, with provisions for 186.5 handling emergency situations; 186.6 (iv) a system of recordkeeping for both individuals and the 186.7 organization, for review of incidents and emergencies, and 186.8 corrective action if needed; 186.9 (v) a plan for responding to and reporting all emergencies, 186.10 including deaths, medical emergencies, illnesses, accidents, 186.11 missing consumers, fires, severe weather and natural disasters, 186.12 bomb threats, and other threats; 186.13 (vi) safe medication administration as identified in 186.14 section 245B.05, subdivision 5, incorporating an observed skill 186.15 assessment to ensure that staff demonstrate the ability to 186.16 administer medications consistent with the license holder's 186.17 policy and procedures; 186.18 (vii) psychotropic medication monitoring when the consumer 186.19 is prescribed a psychotropic medication, including the use of 186.20 the psychotropic medication use checklist. If the 186.21 responsibility for implementing the psychotropic medication use 186.22 checklist has not been assigned in the individual service plan 186.23 and the consumer lives in a licensed site, the residential 186.24 license holder shall be designated; and 186.25 (viii) criteria for admission or service initiation 186.26 developed by the license holder; 186.27 (2) policies and procedures that protect consumer rights 186.28 and privacy by ensuring: 186.29 (i) consumer data privacy, in compliance with the Minnesota 186.30 Data Practices Act, chapter 13; and 186.31 (ii) that complaint procedures provide consumers with a 186.32 simple process to bring grievances and consumers receive a 186.33 response to the grievance within a reasonable time period. The 186.34 license holder must provide a copy of the program's grievance 186.35 procedure and time lines for addressing grievances. The 186.36 program's grievance procedure must permit consumers served by 187.1 the program and the authorized representatives to bring a 187.2 grievance to the highest level of authority in the program; and 187.3 (3) policies and procedures that promote continuity and 187.4 quality of consumer supports by ensuring: 187.5 (i) continuity of care and service coordination, including 187.6 provisions for service termination, temporary service 187.7 suspension, and efforts made by the license holder to coordinate 187.8 services with other vendors who also provide support to the 187.9 consumer. The policy must include the following requirements: 187.10 (A) the license holder must notify the consumer or 187.11 consumer's legal representative and the consumer's case manager 187.12 in writing of the intended termination or temporary service 187.13 suspension and the consumer's right to seek a temporary order 187.14 staying the termination or suspension of service according to 187.15 the procedures in section 256.045, subdivision 4a or subdivision 187.16 6, paragraph (c); 187.17 (B) notice of the proposed termination of services, 187.18 including those situations that began with a temporary service 187.19 suspension, must be given at least 60 days before the proposed 187.20 termination is to become effective, unless services are187.21temporarily suspended according to the license holder's written187.22temporary service suspension procedures, in which case notice187.23must be given as soon as possible; 187.24 (C) the license holder must provide information requested 187.25 by the consumer or consumer's legal representative or case 187.26 manager when services are temporarily suspended or upon notice 187.27 of termination; 187.28 (D) use of temporary service suspension procedures are 187.29 restricted to situations in which the consumer's behavior causes 187.30 immediate and serious danger to the health and safety of the 187.31 individual or others; 187.32 (E) prior to giving notice of service termination or 187.33 temporary service suspension, the license holder must document 187.34 actions taken to minimize or eliminate the need for service 187.35 termination or temporary service suspension; and 187.36 (F) during the period of temporary service suspension, the 188.1 license holder will work with the appropriate county agency to 188.2 develop reasonable alternatives to protect the individual and 188.3 others; and 188.4 (ii) quality services measured through a program evaluation 188.5 process including regular evaluations of consumer satisfaction 188.6 and sharing the results of the evaluations with the consumers 188.7 and legal representatives. 188.8 Sec. 13. Minnesota Statutes 1998, section 245B.07, 188.9 subdivision 10, is amended to read: 188.10 Subd. 10. [CONSUMER FUNDS.] (a) The license holder must 188.11 ensure that consumers retain the use and availability of 188.12 personal funds or property unless restrictions are justified in 188.13 the consumer's individual service plan. 188.14 (b) The license holder must ensure separation ofresident188.15 consumer funds from funds of the license holder, theresidential188.16 program, or program staff. 188.17 (c) Whenever the license holder assists a consumer with the 188.18 safekeeping of funds or other property, the license holder 188.19 must have written authorization to do so by the consumer or the 188.20 consumer's legal representative, and the case manager. In 188.21 addition, the license holder must: 188.22 (1) document receipt and disbursement of the consumer's 188.23 funds or the property, and include the signature of the188.24consumer, conservator, or payee; 188.25 (2)provide a statement at least quarterly itemizing188.26 annually survey, document, and implement the preferences of the 188.27 consumer, consumer's legal representative, and the case manager 188.28 for frequency of receiving a statement that itemizes receipts 188.29 and disbursements ofresidentconsumer funds or other property; 188.30 and 188.31 (3) return to the consumer upon the consumer's request, 188.32 funds and property in the license holder's possession subject to 188.33 restrictions in the consumer's individual service plan, as soon 188.34 as possible, but no later than three working days after the date 188.35 of the request. 188.36 (d) License holders and program staff must not: 189.1 (1) borrow money from a consumer; 189.2 (2) purchase personal items from a consumer; 189.3 (3) sell merchandise or personal services to a consumer; 189.4 (4) require aresidentconsumer to purchase items for which 189.5 the license holder is eligible for reimbursement; or 189.6 (5) useresidentconsumer funds in a manner that would 189.7 violate section 256B.04, or any rules promulgated under that 189.8 section. 189.9 Sec. 14. Minnesota Statutes 1998, section 252.32, 189.10 subdivision 3a, is amended to read: 189.11 Subd. 3a. [REPORTS AND ALLOCATIONS.] (a) The commissioner 189.12 shall specify requirements for quarterly fiscal and annual 189.13 program reports according to section 256.01, subdivision 2, 189.14 paragraph (17). Program reports shall include data which will 189.15 enable the commissioner to evaluate program effectiveness and to 189.16 audit compliance. The commissioner shall reimburse county costs 189.17 on a quarterly basis. 189.18 (b)Beginning January 1, 1998,The commissioner shall 189.19 allocate state funds made available under this section to county 189.20 social service agencies on a calendar year basis. The 189.21 commissioner shall allocate to each county first in amounts 189.22 equal to each county's guaranteed floor as described in clause 189.23 (1), and second, any remaining funds, after the allocation of189.24funds to the newly participating counties as provided for in189.25clause (3), shall be allocated in proportion to each county's189.26total number of families receiving a grant on July 1 of the most189.27recent calendar yearwill be allocated to county agencies to 189.28 support children in their family homes. 189.29 (1) Each county's guaranteed floor shall be calculated as 189.30 follows: 189.31 (i) 95 percent of the county's allocation received in the 189.32 preceding calendar year. For the calendar year 1998 allocation,189.33the preceding calendar year shall be considered to be double the189.34six-month allocation as provided in clause (2); 189.35 (ii) when the amount of funds available for allocation is 189.36 less than the amount available in the preceding year, each 190.1 county's previous year allocation shall be reduced in proportion 190.2 to the reduction in statewide funding, for the purpose of 190.3 establishing the guaranteed floor. 190.4 (2)For the period July 1, 1997, to December 31, 1997, the190.5commissioner shall allocate to each county an amount equal to190.6the actual, state approved grants issued to the families for the190.7month of January 1997, multiplied by six. This six-month190.8allocation shall be combined with the calendar year 1998190.9allocation and be administered as an 18-month allocation.190.10(3) At the commissioner's discretion, funds may be190.11allocated to any nonparticipating county that requests an190.12allocation under this section. Allocations to newly190.13participating counties are dependent upon the availability of190.14funds, as determined by the actual expenditure amount of the190.15participating counties for the most recently completed calendar190.16year.190.17(4)The commissioner shall regularly review the use of 190.18 family support fund allocations by county. The commissioner may 190.19 reallocate unexpended or unencumbered money at any time to those 190.20 counties that have a demonstrated need for additional funding. 190.21 (c) County allocations under this section will be adjusted 190.22 for transfers that occur according to section 256.476 or when 190.23 the county of financial responsibility changes according to 190.24 chapter 256G for eligible recipients. 190.25 Sec. 15. Minnesota Statutes 1998, section 252.46, 190.26 subdivision 6, is amended to read: 190.27 Subd. 6. [VARIANCES.] (a) A variance from the minimum or 190.28 maximum payment rates in subdivisions 2 and 3 may be granted by 190.29 the commissioner when the vendor requests and the county board 190.30 submits to the commissioner a written variance request on forms 190.31 supplied by the commissioner with the recommended payment rates. 190.32 (b) A variance to the rate maximum may be utilized for 190.33 costs associated with compliance with state administrative 190.34 rules, compliance with court orders, capital costs required for 190.35 continued licensure, increased insurance costs, start-up and 190.36 conversion costs for supported employment, direct service staff 191.1 salaries and benefits, transportation, and other program related 191.2 costs when any of the criteria in clauses (1) to (4) is also met: 191.3(1) change is necessary to comply with licensing citations;191.4(2) a licensed vendor currently serving fewer than 70191.5persons with payment rates of 80 percent or less of the191.6statewide average rates and with clients meeting the behavioral191.7or medical criteria under clause (3) approved by the191.8commissioner as a significant program change under section191.9252.28;191.10(3)(1) A determination of need under section 252.28 is 191.11 approved for a significant program changeis approved by the191.12commissioner under section 252.28that is necessary for a vendor 191.13 to provide authorized services toa new client or clients with191.14very severe self-injurious or assaultive behavior, or medical191.15conditions requiring delivery of physician-prescribed medical191.16interventions requiring one-to-one staffing for at least 15191.17minutes each time they are performed, or to a new client or191.18clients directly discharged to the vendor's program from a191.19regional treatment center; or191.20(4) there is a need to maintain required staffing levels in191.21order to provide authorized services approved by the191.22commissioner under section 252.28, that is necessitated by a191.23significant and permanent decrease in licensed capacity or191.24clientele.191.25The county shall review the adequacy of services provided191.26by vendors whose payment rates are 80 percent or more of the191.27statewide average rates and 50 percent or more of the vendor's191.28clients meet the behavioral or medical criteria in clause (3).191.29A variance under this paragraph may be approved only if the191.30costs to the medical assistance program do not exceed the191.31medical assistance costs for all clients served by the191.32alternatives and all clients remaining in the existing services.191.33 one or more clients who meet one or more of the following 191.34 criteria: 191.35 (a) the client is a new client and: 191.36 (i) exhibits severe behavior as indicated on the screening 192.1 document; 192.2 (ii) periodically requires one-to-one staff time for at 192.3 least 15 minutes at a time to deliver physician prescribed 192.4 medical interventions; or 192.5 (iii) has been discharged directly to the vendor's program 192.6 from a regional treatment center or the Minnesota extended 192.7 treatment option. 192.8 (b) the client is an existing client who has developed one 192.9 of the following changed circumstances which increases costs 192.10 that are not covered by the vendor's current rate, and for whom 192.11 a significant program change is necessary to ensure the 192.12 continued provision of authorized services to that client: 192.13 (i) severe behavior as indicated on the screening document; 192.14 (ii) a medical condition periodically requiring one-to-one 192.15 staff time for at least 15 minutes at a time to deliver 192.16 physician prescribed medical interventions; or 192.17 (iii) a permanent decrease in skill functioning, as 192.18 verified by medical reports or assessments. 192.19 (2) A licensing determination requires a program change 192.20 that the vendor cannot comply with due to funding restraints. 192.21 (3) A determination of need under section 252.28 is 192.22 approved for a significant and permanent decrease in licensed 192.23 capacity and the vendor demonstrates the need to retain certain 192.24 staffing levels to serve the remaining clients. 192.25 (4) In cases where conditions in clauses (1) to (3) do not 192.26 apply, but a determination of need under section 252.28 is 192.27 approved for an unusual circumstance which exists that 192.28 significantly impacts the type or amount of services delivered, 192.29 as evidenced by documentation presented by the vendor and with 192.30 the concurrence of the commissioner. 192.31(b)(c) A variance to the rate minimum may be granted when: 192.32 (1) the county board contracts for increased services from 192.33 a vendor and for some or all individuals receiving services from 192.34 the vendor lower per unit fixed costs result; or 192.35 (2) when the actual costs of delivering authorized service 192.36 over a 12-month contract period have decreased. 193.1(c)(d) The written variance request under this subdivision 193.2 must include documentation that all the following criteria have 193.3 been met: 193.4 (1) The commissioner and the county board have both 193.5 conducted a review and have identified a need for a change in 193.6 the payment rates and recommended an effective date for the 193.7 change in the rate. 193.8 (2) The vendor documents efforts to reallocate current 193.9 staff and any additional staffing needs cannot be met by using 193.10 temporary special needs rate exceptions under Minnesota Rules, 193.11 parts 9510.1020 to 9510.1140. 193.12 (3) The vendor documents that financial resources have been 193.13 reallocated before applying for a variance. No variance may be 193.14 granted for equipment, supplies, or other capital expenditures 193.15 when depreciation expense for repair and replacement of such 193.16 items is part of the current rate. 193.17 (4) For variances related to loss of clientele, the vendor 193.18 documents the other program and administrative expenses, if any, 193.19 that have been reduced. 193.20 (5) The county board submits verification of the conditions 193.21 for which the variance is requested, a description of the nature 193.22 and cost of the proposed changes, and how the county will 193.23 monitor the use of money by the vendor to make necessary changes 193.24 in services. 193.25 (6) The county board's recommended payment rates do not 193.26 exceed 95 percent of the greater of 125 percent of the current 193.27 statewide median or 125 percent of the regional average payment 193.28 rates, whichever is higher, for each of the regional commission 193.29 districts under sections 462.381 to 462.396 in which the vendor 193.30 is located except for the following: when a variance is 193.31 recommended to allow authorized service delivery to new clients 193.32 with severeself-injurious or assaultivebehaviors or with 193.33 medical conditions requiring delivery of physician prescribed 193.34 medical interventions, or to persons being directly discharged 193.35 from a regional treatment center or Minnesota extended treatment 193.36 options to the vendor's program, those persons must be assigned 194.1 a payment rate of 200 percent of the current statewide average 194.2 rates. All other clients receiving services from the vendor 194.3 must be assigned a payment rate equal to the vendor's current 194.4 rate unless the vendor's current rate exceeds 95 percent of 125 194.5 percent of the statewide median or 125 percent of the regional 194.6 average payment rates, whichever is higher. When the vendor's 194.7 rates exceed 95 percent of 125 percent of the statewide median 194.8 or 125 percent of the regional average rates, the maximum rates 194.9 assigned to all other clients must be equal to the greater of 95 194.10 percent of 125 percent of the statewide median or 125 percent of 194.11 the regional average rates. The maximum payment rate that may 194.12 be recommended for the vendor under these conditions is 194.13 determined by multiplying the number of clients at each limit by 194.14 the rate corresponding to that limit and then dividing the sum 194.15 by the total number of clients. 194.16(d)(e) The commissioner shall have 60 calendar days from 194.17 the date of the receipt of the complete request to accept or 194.18 reject it, or the request shall be deemed to have been granted. 194.19 If the commissioner rejects the request, the commissioner shall 194.20 state in writing the specific objections to the request and the 194.21 reasons for its rejection. 194.22 Sec. 16. Minnesota Statutes 1998, section 256.955, 194.23 subdivision 2, is amended to read: 194.24 Subd. 2. [DEFINITIONS.] (a) For purposes of this section, 194.25 the following definitions apply. 194.26 (b) "Health plan" has the meaning provided in section 194.27 62Q.01, subdivision 3. 194.28 (c) "Health plan company" has the meaning provided in 194.29 section 62Q.01, subdivision 4. 194.30 (d) "Qualified senior citizen" means a Medicare enrollee, 194.31 or an individual age 65 or older who is not a Medicare enrollee, 194.32 who: 194.33 (1) is eligible as a qualified Medicare beneficiary 194.34 according to section 256B.057, subdivision 3 or 3a, or is 194.35 eligible under section 256B.057, subdivision 3 or 3a, and is 194.36 also eligible for medical assistance or general assistance 195.1 medical care with a spenddown as defined in section 256B.056, 195.2 subdivision 5. Persons who are determined eligible for medical 195.3 assistance according to section 256B.0575, who are eligible for 195.4 medical assistance or general assistance medical care without a 195.5 spenddown, or who are enrolled in MinnesotaCare, are not 195.6 eligible for this program; 195.7 (2) is not enrolled in prescription drug coverage under a 195.8 health plan; 195.9 (3) is not enrolled in prescription drug coverage under a 195.10 Medicare supplement plan, as defined in sections 62A.31 to 195.11 62A.44, or policies, contracts, or certificates that supplement 195.12 Medicare issued by health maintenance organizations or those 195.13 policies, contracts, or certificates governed by section 1833 or 195.14 1876 of the federal Social Security Act, United States Code, 195.15 title 42, section 1395, et seq., as amended; 195.16 (4) has not had coverage described in clauses (2) and (3) 195.17 for at least four months prior to application for the program; 195.18 and 195.19 (5) is a permanent resident of Minnesota as defined in 195.20 section 256L.09. 195.21 Sec. 17. Minnesota Statutes 1998, section 256.955, 195.22 subdivision 3, is amended to read: 195.23 Subd. 3. [PRESCRIPTION DRUG COVERAGE.]Coverage under the195.24program is limited to prescription drugs covered under the195.25medical assistance program as described in section 256B.0625,195.26subdivision 13, subject to a maximum deductible of $300195.27annually, except drugs cleared by the FDA shall be available to195.28qualified senior citizens enrolled in the program without195.29restriction when prescribed for medically accepted indication as195.30defined in the federal rebate program under section 1927 of195.31title XIX of the federal Social Security Act.Coverage under 195.32 the program shall be limited to those prescription drugs that: 195.33 (1) are covered under the medical assistance program as 195.34 described in section 256B.0625, subdivision 13; and 195.35 (2) are provided by manufacturers that have fully executed 195.36 senior drug rebate agreements with the commissioner and comply 196.1 with such agreements. 196.2 Sec. 18. Minnesota Statutes 1998, section 256.955, 196.3 subdivision 4, is amended to read: 196.4 Subd. 4. [APPLICATION PROCEDURES AND COORDINATION WITH 196.5 MEDICAL ASSISTANCE.] Applications and information on the program 196.6 must be made available at county social service agencies, health 196.7 care provider offices, and agencies and organizations serving 196.8 senior citizens. Senior citizens shall submit applications and 196.9 any information specified by the commissioner as being necessary 196.10 to verify eligibility directly to the county social service 196.11 agencies: 196.12 (1) beginning January 1, 1999, the county social service 196.13 agency shall determine medical assistance spenddown eligibility 196.14 of individuals who qualify for the senior citizen drug program 196.15 of individuals; and 196.16 (2) program payments will be used to reduce the spenddown 196.17 obligations of individuals who are determined to be eligible for 196.18 medical assistance with a spenddown as defined in section 196.19 256B.056, subdivision 5. 196.20 Seniors who are eligible for medical assistance with a spenddown 196.21 shall be financially responsible for the deductible amount up to 196.22 the satisfaction of the spenddown. No deductible applies once 196.23 the spenddown has been met. Payments to providers for 196.24 prescription drugs for persons eligible under this subdivision 196.25 shall be reduced by the deductible. 196.26 County social service agencies shall determine an 196.27 applicant's eligibility for the program within 30 days from the 196.28 date the application is received. Eligibility begins the month 196.29 after approval. 196.30 Sec. 19. Minnesota Statutes 1998, section 256.955, 196.31 subdivision 7, is amended to read: 196.32 Subd. 7. [COST SHARING.](a) Enrollees shall pay an annual196.33premium of $120.196.34(b)Program enrollees must satisfy a$300$420 annual 196.35 deductible, based upon expenditures for prescription drugs, to 196.36 be paidas follows:197.1(1) $25 monthly deductible for persons with a monthly197.2spenddown; or197.3(2) $150 biannual deductible for persons with a six-month197.4spenddownin $35 monthly increments. 197.5 Sec. 20. Minnesota Statutes 1998, section 256.955, 197.6 subdivision 9, is amended to read: 197.7 Subd. 9. [PROGRAM LIMITATION.]This section shall be197.8repealed upon federal approval of the waiver to allow the197.9commissioner to provide prescription drug coverage for qualified197.10Medicare beneficiaries whose income is less than 150 percent of197.11the federal poverty guidelinesThe commissioner shall administer 197.12 the senior drug program so that the costs total no more than 197.13 funds appropriated plus the drug rebate proceeds. Senior drug 197.14 program rebate revenues are appropriated to the commissioner and 197.15 shall be expended to augment funding of the senior drug 197.16 program. New enrollment shall cease if the commissioner 197.17 determines that, given current enrollment, costs of the program 197.18 will exceed appropriated funds and rebate proceeds. 197.19 Sec. 21. Minnesota Statutes 1998, section 256.9685, 197.20 subdivision 1a, is amended to read: 197.21 Subd. 1a. [ADMINISTRATIVE RECONSIDERATION.] 197.22 Notwithstanding sections 256B.04, subdivision 15, and 256D.03, 197.23 subdivision 7, the commissioner shall establish an 197.24 administrative reconsideration process for appeals of inpatient 197.25 hospital services determined to be medically unnecessary. A 197.26 physician or hospital may request a reconsideration of the 197.27 decision that inpatient hospital services are not medically 197.28 necessary by submitting a written request for review to the 197.29 commissioner within 30 days after receiving notice of the 197.30 decision. The reconsideration process shall take place prior to 197.31 the procedures of subdivision 1b and shall be conducted by 197.32 physicians that are independent of the case under 197.33 reconsideration. A majority decision by the physicians is 197.34 necessary to make a determination that the services were not 197.35 medically necessary. 197.36 Sec. 22. Minnesota Statutes 1998, section 256.969, 198.1 subdivision 1, is amended to read: 198.2 Subdivision 1. [HOSPITAL COST INDEX.] (a) The hospital 198.3 cost index shall be the change in the Consumer Price Index-All 198.4 Items (United States city average) (CPI-U) forecasted by Data 198.5 Resources, Inc. The commissioner shall use the indices as 198.6 forecasted in the third quarter of the calendar year prior to 198.7 the rate year. The hospital cost index may be used to adjust 198.8 the base year operating payment rate through the rate year on an 198.9 annually compounded basis. 198.10 (b) For fiscal years beginning on or after July 1, 1993, 198.11 the commissioner of human services shall not provide automatic 198.12 annual inflation adjustments for hospital payment rates under 198.13 medical assistance, nor under general assistance medical care, 198.14 except that the inflation adjustments under paragraph (a) for 198.15 medical assistance, excluding general assistance medical care, 198.16 shall apply through calendar year19992001. The index for 198.17 calendar year 2000 shall be reduced 2.5 percentage points to 198.18 recover overprojections of the index from 1994 to 1996. The 198.19 commissioner of finance shall include as a budget change request 198.20 in each biennial detailed expenditure budget submitted to the 198.21 legislature under section 16A.11 annual adjustments in hospital 198.22 payment rates under medical assistance and general assistance 198.23 medical care, based upon the hospital cost index. 198.24 Sec. 23. Minnesota Statutes 1998, section 256B.04, 198.25 subdivision 16, is amended to read: 198.26 Subd. 16. [PERSONAL CARE SERVICES.] (a) Notwithstanding 198.27 any contrary language in this paragraph, the commissioner of 198.28 human services and the commissioner of health shall jointly 198.29 promulgate rules to be applied to the licensure of personal care 198.30 services provided under the medical assistance program. The 198.31 rules shall consider standards for personal care services that 198.32 are based on the World Institute on Disability's recommendations 198.33 regarding personal care services. These rules shall at a 198.34 minimum consider the standards and requirements adopted by the 198.35 commissioner of health under section 144A.45, which the 198.36 commissioner of human services determines are applicable to the 199.1 provision of personal care services, in addition to other 199.2 standards or modifications which the commissioner of human 199.3 services determines are appropriate. 199.4 The commissioner of human services shall establish an 199.5 advisory group including personal care consumers and providers 199.6 to provide advice regarding which standards or modifications 199.7 should be adopted. The advisory group membership must include 199.8 not less than 15 members, of which at least 60 percent must be 199.9 consumers of personal care services and representatives of 199.10 recipients with various disabilities and diagnoses and ages. At 199.11 least 51 percent of the members of the advisory group must be 199.12 recipients of personal care. 199.13 The commissioner of human services may contract with the 199.14 commissioner of health to enforce the jointly promulgated 199.15 licensure rules for personal care service providers. 199.16 Prior to final promulgation of the joint rule the 199.17 commissioner of human services shall report preliminary findings 199.18 along with any comments of the advisory group and a plan for 199.19 monitoring and enforcement by the department of health to the 199.20 legislature by February 15, 1992. 199.21 Limits on the extent of personal care services that may be 199.22 provided to an individual must be based on the 199.23 cost-effectiveness of the services in relation to the costs of 199.24 inpatient hospital care, nursing home care, and other available 199.25 types of care. The rules must provide, at a minimum: 199.26 (1) that agencies be selected to contract with or employ 199.27 and train staff to provide and supervise the provision of 199.28 personal care services; 199.29 (2) that agencies employ or contract with a qualified 199.30 applicant that a qualified recipient proposes to the agency as 199.31 the recipient's choice of assistant; 199.32 (3) that agencies bill the medical assistance program for a 199.33 personal care service by a personal care assistant and 199.34 supervision bythe registered nursea qualified professional 199.35 supervising the personal care assistant unless the recipient 199.36 selects the fiscal agent option under section 256B.0627, 200.1 subdivision 10; 200.2 (4) that agencies establish a grievance mechanism; and 200.3 (5) that agencies have a quality assurance program. 200.4 (b) The commissioner may waive the requirement for the 200.5 provision of personal care services through an agency in a 200.6 particular county, when there are less than two agencies 200.7 providing services in that county and shall waive the 200.8 requirement for personal care assistants required to join an 200.9 agency for the first time during 1993 when personal care 200.10 services are provided under a relative hardship waiver under 200.11 section 256B.0627, subdivision 4, paragraph (b), clause (7), and 200.12 at least two agencies providing personal care services have 200.13 refused to employ or contract with the independent personal care 200.14 assistant. 200.15 Sec. 24. Minnesota Statutes 1998, section 256B.04, is 200.16 amended by adding a subdivision to read: 200.17 Subd. 19. [PERFORMANCE DATA REPORTING UNIT.] The 200.18 commissioner of human services shall establish a performance 200.19 data reporting unit that serves counties and the state. The 200.20 department shall support this unit and provide technical 200.21 assistance and access to the data warehouse. The performance 200.22 data reporting unit, which will operate within the department's 200.23 central office and consist of both county and department staff, 200.24 shall provide performance data reports to individual counties, 200.25 share expertise from counties and the department perspective, 200.26 and participate in joint planning to link with county databases 200.27 and other county data sources in order to provide information on 200.28 services provided to public clients from state, federal, and 200.29 county funding sources. The unit shall provide counties both 200.30 individual and group summary level standard or unique reports on 200.31 health care eligibility and services provided to clients for 200.32 whom they have financial responsibility. 200.33 Sec. 25. Minnesota Statutes 1998, section 256B.055, 200.34 subdivision 3a, is amended to read: 200.35 Subd. 3a. [MFIP-S FAMILIES; FAMILIES ELIGIBLE UNDER PRIOR 200.36 AFDC RULES.] (a) Beginning January 1, 1998, or on the date that 201.1 MFIP-S is implemented in counties, medical assistance may be 201.2 paid for a person receiving public assistance under the MFIP-S 201.3 program. 201.4 (b) Beginning January 1, 1998, medical assistance may be 201.5 paid for a person who would have been eligible for public 201.6 assistance under the income and resource standardsand201.7deprivation requirements, or who would have been eligible but 201.8 for excess income or assets, under the state's AFDC plan in 201.9 effect as of July 16, 1996, as required by the Personal 201.10 Responsibility and Work Opportunity Reconciliation Act of 1996 201.11 (PRWORA), Public Law Number 104-193. 201.12 Sec. 26. Minnesota Statutes 1998, section 256B.056, 201.13 subdivision 4, is amended to read: 201.14 Subd. 4. [INCOME.] To be eligible for medical assistance, 201.15 a person eligible under section 256B.055, subdivision 7, not 201.16 receiving supplemental security income program payments, and 201.17 families and children may have an income up to 133-1/3 percent 201.18 of the AFDC income standard in effect under the July 16, 1996, 201.19 AFDC state plan.For rate years beginning on or after July 1,201.201999, the commissioner shall consider increasing the base AFDC201.21standard in effect July 16, 1996, by an amount equal to the201.22percent change in the Consumer Price Index for All Urban201.23Consumers for the previous October compared to one year201.24earlier.Effective July 1, 1999, the base AFDC standard in 201.25 effect on July 16, 1996, shall be increased by an amount equal 201.26 to the percentage increase in the Consumer Price Index for all 201.27 urban consumers for July 1996 through April 1999. Effective 201.28 January 1, 2000, and each successive January, recipients of 201.29 supplemental security income may have an income up to the 201.30 supplemental security income standard in effect on that date. 201.31 In computing income to determine eligibility of persons who are 201.32 not residents of long-term care facilities, the commissioner 201.33 shall disregard increases in income as required by Public Law 201.34 Numbers 94-566, section 503; 99-272; and 99-509. Veterans aid 201.35 and attendance benefits and Veterans Administration unusual 201.36 medical expense payments are considered income to the recipient. 202.1 Sec. 27. Minnesota Statutes 1998, section 256B.057, is 202.2 amended by adding a subdivision to read: 202.3 Subd. 9. [EMPLOYED PERSONS WITH DISABILITIES.] (a) Medical 202.4 assistance may be paid for a person who is employed; who, except 202.5 for income or assets, would be eligible for the supplemental 202.6 security income program; whose assets do not exceed $20,000, 202.7 excluding retirement accounts, medical savings accounts, and all 202.8 assets excluded under the supplemental security income program; 202.9 and who pays a premium, if required. Any spousal income or 202.10 assets shall be disregarded for purposes of eligibility and 202.11 premium determinations. 202.12 (b) A person whose earned and unearned income is equal to 202.13 or greater than 200 percent of federal poverty guidelines for 202.14 the applicable family size must pay a premium to be eligible for 202.15 medical assistance. The premium shall be equal to ten percent 202.16 of the person's gross earned and unearned income above 200 202.17 percent of federal poverty guidelines for the applicable family 202.18 size up to the cost of coverage. 202.19 (c) A person's eligibility and premium shall be determined 202.20 by the local county agency. Premiums must be paid to the 202.21 commissioner. All premiums are dedicated to the commissioner. 202.22 (d) Any required premium shall be determined at application 202.23 and redetermined annually at recertification or when a change in 202.24 income occurs. 202.25 (e) The first premium payment is due upon notification from 202.26 the commissioner of the premium amount required. Premiums may 202.27 be paid in installments at the discretion of the commissioner. 202.28 (f) Nonpayment of the premium shall result in denial or 202.29 termination of medical assistance unless the person demonstrates 202.30 good cause for nonpayment. Nonpayment shall include payment 202.31 with a dishonored instrument. If payment is made with a 202.32 dishonored instrument, the commissioner may demand a guaranteed 202.33 form of payment. 202.34 Sec. 28. Minnesota Statutes 1998, section 256B.0575, is 202.35 amended to read: 202.36 256B.0575 [AVAILABILITY OF INCOME FOR INSTITUTIONALIZED 203.1 PERSONS.] 203.2 When an institutionalized person is determined eligible for 203.3 medical assistance, the income that exceeds the deductions in 203.4 paragraphs (a) and (b) must be applied to the cost of 203.5 institutional care. 203.6 (a) The following amounts must be deducted from the 203.7 institutionalized person's income in the following order: 203.8 (1) the personal needs allowance under section 256B.35 or, 203.9 for a veteran who does not have a spouse or child, or a 203.10 surviving spouse of a veteran having no child, the amount of an 203.11 improved pension received from the veteran's administration not 203.12 exceeding $90 per month; 203.13 (2) the personal allowance for disabled individuals under 203.14 section 256B.36; 203.15 (3) if the institutionalized person has a legally appointed 203.16 guardian or conservator, five percent of the recipient's gross 203.17 monthly income up to $100 as reimbursement for guardianship or 203.18 conservatorship services; 203.19 (4) a monthly income allowance determined under section 203.20 256B.058, subdivision 2, but only to the extent income of the 203.21 institutionalized spouse is made available to the community 203.22 spouse; 203.23 (5) a monthly allowance for children under age 18 which, 203.24 together with the net income of the children, would provide 203.25 income equal to the medical assistance standard for families and 203.26 children according to section 256B.056, subdivision 4, for a 203.27 family size that includes only the minor children. This 203.28 deduction applies only if the children do not live with the 203.29 community spouse and only to the extent that the deduction is 203.30 not included in the personal needs allowance under section 203.31 256B.35, subdivision 1, as child support garnished under a court 203.32 order; 203.33 (6) a monthly family allowance for other family members, 203.34 equal to one-third of the difference between 122 percent of the 203.35 federal poverty guidelines and the monthly income for that 203.36 family member; 204.1 (7) reparations payments made by the Federal Republic of 204.2 Germany and reparations payments made by the Netherlands for 204.3 victims of Nazi persecution between 1940 and 1945;and204.4 (8) all other exclusions from income for institutionalized 204.5 persons as mandated by federal law; and 204.6(8)(9) amounts for reasonable expenses incurred for 204.7 necessary medical or remedial care for the institutionalized 204.8 spouse that are not medical assistance covered expenses and that 204.9 are not subject to payment by a third party. 204.10 For purposes of clause (6), "other family member" means a 204.11 person who resides with the community spouse and who is a minor 204.12 or dependent child, dependent parent, or dependent sibling of 204.13 either spouse. "Dependent" means a person who could be claimed 204.14 as a dependent for federal income tax purposes under the 204.15 Internal Revenue Code. 204.16 (b) Income shall be allocated to an institutionalized 204.17 person for a period of up to three calendar months, in an amount 204.18 equal to the medical assistance standard for a family size of 204.19 one if: 204.20 (1) a physician certifies that the person is expected to 204.21 reside in the long-term care facility for three calendar months 204.22 or less; 204.23 (2) if the person has expenses of maintaining a residence 204.24 in the community; and 204.25 (3) if one of the following circumstances apply: 204.26 (i) the person was not living together with a spouse or a 204.27 family member as defined in paragraph (a) when the person 204.28 entered a long-term care facility; or 204.29 (ii) the person and the person's spouse become 204.30 institutionalized on the same date, in which case the allocation 204.31 shall be applied to the income of one of the spouses. 204.32 For purposes of this paragraph, a person is determined to be 204.33 residing in a licensed nursing home, regional treatment center, 204.34 or medical institution if the person is expected to remain for a 204.35 period of one full calendar month or more. 204.36 Sec. 29. Minnesota Statutes 1998, section 256B.0625, is 205.1 amended by adding a subdivision to read: 205.2 Subd. 3b. [TELEMEDICINE CONSULTATIONS.] (a) Medical 205.3 assistance covers telemedicine consultations. Telemedicine 205.4 consultations may be made via two-way, interactive video or 205.5 store-and-forward technology. Store-and-forward technology 205.6 includes telemedicine consultations that do not occur in real 205.7 time via synchronous transmissions, and that do not require a 205.8 face-to-face encounter with the patient for all or any part of 205.9 any such telemedicine consultation. The patient record must 205.10 include a written opinion from the consulting physician 205.11 providing the telemedicine consultation. A communication 205.12 between two physicians that consists solely of a telephone 205.13 conversation is not a telemedicine consultation. Coverage is 205.14 limited to three telemedicine consultations per recipient per 205.15 calendar week. Telemedicine consultations will be paid at the 205.16 full allowable. 205.17 (b) This subdivision expires July 1, 2001. 205.18 Sec. 30. Minnesota Statutes 1998, section 256B.0625, is 205.19 amended by adding a subdivision to read: 205.20 Subd. 3c. [CONSULTATION SERVICES BY PHYSICIANS 205.21 SPECIALIZING IN CHILD ABUSE AND NEGLECT.] (a) Medical assistance 205.22 covers consultation services by physicians specializing in child 205.23 abuse and neglect. Alternative media formats may be used when 205.24 the patient is a child being examined for potential abuse or 205.25 neglect, the consulting physician is a specialist in child abuse 205.26 and neglect, and the use of two-way, interactive video or the 205.27 occurrence of a second exam would be medically counter indicated 205.28 for the child. 205.29 (b) This subdivision expires July 1, 2001. 205.30 Sec. 31. Minnesota Statutes 1998, section 256B.0625, 205.31 subdivision 6a, is amended to read: 205.32 Subd. 6a. [HOME HEALTH SERVICES.] Home health services are 205.33 those services specified in Minnesota Rules, part 9505.0290. 205.34 Medical assistance covers home health services at a recipient's 205.35 home residence. Medical assistance does not cover home health 205.36 services for residents of a hospital, nursing facility, or 206.1 intermediate care facility,or a health care facility licensed206.2by the commissioner of health, unless the program is funded206.3under a home and community-based services waiver orunless the 206.4 commissioner of human services has prior authorized skilled 206.5 nurse visits for less than 90 days for a resident at an 206.6 intermediate care facility for persons with mental retardation, 206.7 to prevent an admission to a hospital or nursing facility or 206.8 unless a resident who is otherwise eligible is on leave from the 206.9 facility and the facility either pays for the home health 206.10 services or forgoes the facility per diem for the leave days 206.11 that home health services are used. Home health services must 206.12 be provided by a Medicare certified home health agency. All 206.13 nursing and home health aide services must be provided according 206.14 to section 256B.0627. 206.15 Sec. 32. Minnesota Statutes 1998, section 256B.0625, 206.16 subdivision 8, is amended to read: 206.17 Subd. 8. [PHYSICAL THERAPY.] Medical assistance covers 206.18 physical therapy and related services, including specialized 206.19 maintenance therapy. Services provided by a physical therapy 206.20 assistant shall be reimbursed at the same rate as services 206.21 performed by a physical therapist when the services of the 206.22 physical therapy assistant are provided under the direction of a 206.23 physical therapist who is on the premises. Services provided by 206.24 a physical therapy assistant that are provided under the 206.25 direction of a physical therapist who is not on the premises 206.26 shall be reimbursed at 65 percent of the physical therapist rate. 206.27 Sec. 33. Minnesota Statutes 1998, section 256B.0625, 206.28 subdivision 8a, is amended to read: 206.29 Subd. 8a. [OCCUPATIONAL THERAPY.] Medical assistance 206.30 covers occupational therapy and related services, including 206.31 specialized maintenance therapy. Services provided by an 206.32 occupational therapy assistant shall be reimbursed at the same 206.33 rate as services performed by an occupational therapist when the 206.34 services of the occupational therapy assistant are provided 206.35 under the direction of the occupational therapist who is on the 206.36 premises. Services provided by an occupational therapy 207.1 assistant that are provided under the direction of an 207.2 occupational therapist who is not on the premises shall be 207.3 reimbursed at 65 percent of the occupational therapist rate. 207.4 Sec. 34. Minnesota Statutes 1998, section 256B.0625, is 207.5 amended by adding a subdivision to read: 207.6 Subd. 8b. [SPEECH LANGUAGE PATHOLOGY SERVICES.] Medical 207.7 assistance covers speech language pathology and related 207.8 services, including specialized maintenance therapy. 207.9 Sec. 35. Minnesota Statutes 1998, section 256B.0625, is 207.10 amended by adding a subdivision to read: 207.11 Subd. 8c. [REHABILITATION SERVICES.] Effective July 1, 207.12 1999, annual thresholds for provision of rehabilitation services 207.13 described in subdivisions 8, 8a, and 8b will be the same in 207.14 amount and description as the thresholds prescribed by the 207.15 department of human services health care programs provider 207.16 manual for calendar year 1997, and they will include sensory 207.17 skills and cognitive training skills. 207.18 Sec. 36. Minnesota Statutes 1998, section 256B.0625, 207.19 subdivision 13, is amended to read: 207.20 Subd. 13. [DRUGS.] (a) Medical assistance covers drugs, 207.21 except for fertility drugs when specifically used to enhance 207.22 fertility, if prescribed by a licensed practitioner and 207.23 dispensed by a licensed pharmacist, by a physician enrolled in 207.24 the medical assistance program as a dispensing physician, or by 207.25 a physician or a nurse practitioner employed by or under 207.26 contract with a community health board as defined in section 207.27 145A.02, subdivision 5, for the purposes of communicable disease 207.28 control. The commissioner, after receiving recommendations from 207.29 professional medical associations and professional pharmacist 207.30 associations, shall designate a formulary committee to advise 207.31 the commissioner on the names of drugs for which payment is 207.32 made, recommend a system for reimbursing providers on a set fee 207.33 or charge basis rather than the present system, and develop 207.34 methods encouraging use of generic drugs when they are less 207.35 expensive and equally effective as trademark drugs. The 207.36 formulary committee shall consist of nine members, four of whom 208.1 shall be physicians who are not employed by the department of 208.2 human services, and a majority of whose practice is for persons 208.3 paying privately or through health insurance, three of whom 208.4 shall be pharmacists who are not employed by the department of 208.5 human services, and a majority of whose practice is for persons 208.6 paying privately or through health insurance, a consumer 208.7 representative, and a nursing home representative. Committee 208.8 members shall serve three-year terms and shall serve without 208.9 compensation. Members may be reappointed once. 208.10 (b) The commissioner shall establish a drug formulary. Its 208.11 establishment and publication shall not be subject to the 208.12 requirements of the Administrative Procedure Act, but the 208.13 formulary committee shall review and comment on the formulary 208.14 contents. The formulary committee shall review and recommend 208.15 drugs which require prior authorization. The formulary 208.16 committee may recommend drugs for prior authorization directly 208.17 to the commissioner, as long as opportunity for public input is 208.18 provided. Prior authorization may be requested by the 208.19 commissioner based on medical and clinical criteria before 208.20 certain drugs are eligible for payment. Before a drug may be 208.21 considered for prior authorization at the request of the 208.22 commissioner: 208.23 (1) the drug formulary committee must develop criteria to 208.24 be used for identifying drugs; the development of these criteria 208.25 is not subject to the requirements of chapter 14, but the 208.26 formulary committee shall provide opportunity for public input 208.27 in developing criteria; 208.28 (2) the drug formulary committee must hold a public forum 208.29 and receive public comment for an additional 15 days; and 208.30 (3) the commissioner must provide information to the 208.31 formulary committee on the impact that placing the drug on prior 208.32 authorization will have on the quality of patient care and 208.33 information regarding whether the drug is subject to clinical 208.34 abuse or misuse. Prior authorization may be required by the 208.35 commissioner before certain formulary drugs are eligible for 208.36 payment. The formulary shall not include: 209.1 (i) drugs or products for which there is no federal 209.2 funding; 209.3 (ii) over-the-counter drugs, except for antacids, 209.4 acetaminophen, family planning products, aspirin, insulin, 209.5 products for the treatment of lice, vitamins for adults with 209.6 documented vitamin deficiencies, vitamins for children under the 209.7 age of seven and pregnant or nursing women, and any other 209.8 over-the-counter drug identified by the commissioner, in 209.9 consultation with the drug formulary committee, as necessary, 209.10 appropriate, and cost-effective for the treatment of certain 209.11 specified chronic diseases, conditions or disorders, and this 209.12 determination shall not be subject to the requirements of 209.13 chapter 14; 209.14 (iii) anorectics; 209.15 (iv) drugs for which medical value has not been 209.16 established; and 209.17 (v) drugs from manufacturers who have not signed a rebate 209.18 agreement with the Department of Health and Human Services 209.19 pursuant to section 1927 of title XIX of the Social Security Act 209.20and who have not signed an agreement with the state for drugs209.21purchased pursuant to the senior citizen drug program209.22established under section 256.955. 209.23 The commissioner shall publish conditions for prohibiting 209.24 payment for specific drugs after considering the formulary 209.25 committee's recommendations. 209.26 (c) The basis for determining the amount of payment shall 209.27 be the lower of the actual acquisition costs of the drugs plus a 209.28 fixed dispensing fee; the maximum allowable cost set by the 209.29 federal government or by the commissioner plus the fixed 209.30 dispensing fee; or the usual and customary price charged to the 209.31 public. The pharmacy dispensing fee shall be $3.65. Actual 209.32 acquisition cost includes quantity and other special discounts 209.33 except time and cash discounts. The actual acquisition cost of 209.34 a drug shall be estimated by the commissioner, at average 209.35 wholesale price minus nine percent. The maximum allowable cost 209.36 of a multisource drug may be set by the commissioner and it 210.1 shall be comparable to, but no higher than, the maximum amount 210.2 paid by other third-party payors in this state who have maximum 210.3 allowable cost programs. Establishment of the amount of payment 210.4 for drugs shall not be subject to the requirements of the 210.5 Administrative Procedure Act. An additional dispensing fee of 210.6 $.30 may be added to the dispensing fee paid to pharmacists for 210.7 legend drug prescriptions dispensed to residents of long-term 210.8 care facilities when a unit dose blister card system, approved 210.9 by the department, is used. Under this type of dispensing 210.10 system, the pharmacist must dispense a 30-day supply of drug. 210.11 The National Drug Code (NDC) from the drug container used to 210.12 fill the blister card must be identified on the claim to the 210.13 department. The unit dose blister card containing the drug must 210.14 meet the packaging standards set forth in Minnesota Rules, part 210.15 6800.2700, that govern the return of unused drugs to the 210.16 pharmacy for reuse. The pharmacy provider will be required to 210.17 credit the department for the actual acquisition cost of all 210.18 unused drugs that are eligible for reuse. Over-the-counter 210.19 medications must be dispensed in the manufacturer's unopened 210.20 package. The commissioner may permit the drug clozapine to be 210.21 dispensed in a quantity that is less than a 30-day supply. 210.22 Whenever a generically equivalent product is available, payment 210.23 shall be on the basis of the actual acquisition cost of the 210.24 generic drug, unless the prescriber specifically indicates 210.25 "dispense as written - brand necessary" on the prescription as 210.26 required by section 151.21, subdivision 2. 210.27 (d) For purposes of this subdivision, "multisource drugs" 210.28 means covered outpatient drugs, excluding innovator multisource 210.29 drugs, for which there are two or more drug products which: 210.30 (i) are related as therapeutically equivalent under the 210.31 Food and Drug Administration's most recent publication of 210.32 "Approved Drug Products with Therapeutic Equivalence 210.33 Evaluations"; 210.34 (ii) are pharmaceutically equivalent and bioequivalent as 210.35 determined by the Food and Drug Administration; and 210.36 (iii) are sold or marketed in Minnesota. 211.1 "Innovator multisource drug" means a multisource drug that was 211.2 originally marketed under an original new drug application 211.3 approved by the Food and Drug Administration. 211.4 Sec. 37. Minnesota Statutes 1998, section 256B.0625, 211.5 subdivision 17, is amended to read: 211.6 Subd. 17. [TRANSPORTATION COSTS.] (a) Medical assistance 211.7 covers transportation costs incurred solely for obtaining 211.8 emergency medical care or transportation costs incurred by 211.9 nonambulatory persons in obtaining emergency or nonemergency 211.10 medical care when paid directly to an ambulance company, common 211.11 carrier, or other recognized providers of transportation 211.12 services. For the purpose of this subdivision, a person who is 211.13 incapable of transport by taxicab or bus shall be considered to 211.14 be nonambulatory. 211.15 (b) Medical assistance covers special transportation, as 211.16 defined in Minnesota Rules, part 9505.0315, subpart 1, item F, 211.17 if the provider receives and maintains a current physician's 211.18 order by the recipient's attending physician certifying that the 211.19 recipient has a physical or mental impairment that would 211.20 prohibit the recipient from safely accessing and using a bus, 211.21 taxi, other commercial transportation, or private automobile. 211.22 Special transportation includes driver-assisted service to 211.23 eligible individuals. Driver-assisted service includes 211.24 passenger pickup at and return to the individual's residence or 211.25 place of business, assistance with admittance of the individual 211.26 to the medical facility, and assistance in passenger securement 211.27 or in securing of wheelchairs or stretchers in the vehicle. The 211.28 commissioner shall establish maximum medical assistance 211.29 reimbursement rates for special transportation services for 211.30 persons who need a wheelchair lift van or stretcher-equipped 211.31 vehicle and for those who do not need a wheelchair lift van or 211.32 stretcher-equipped vehicle. The average of these two rates per 211.33 trip must not exceed$15$15.50 for the base rate and 211.34$1.20$1.25 per mile. Special transportation provided to 211.35 nonambulatory persons who do not need a wheelchair lift van or 211.36 stretcher-equipped vehicle, may be reimbursed at a lower rate 212.1 than special transportation provided to persons who need a 212.2 wheelchair lift van or stretcher-equipped vehicle. 212.3 Sec. 38. Minnesota Statutes 1998, section 256B.0625, 212.4 subdivision 19c, is amended to read: 212.5 Subd. 19c. [PERSONAL CARE.] Medical assistance covers 212.6 personal care services provided by an individual who is 212.7 qualified to provide the services according to subdivision 19a 212.8 and section 256B.0627, where the services are prescribed by a 212.9 physician in accordance with a plan of treatment and are 212.10 supervised bya registered nursethe recipient under the fiscal 212.11 agent option according to section 256B.0627, subdivision 10, or 212.12 a qualified professional. "Qualified professional" means a 212.13 mental health professional as defined in section 245.462, 212.14 subdivision 18, or 245.4871, subdivision 26; or a registered 212.15 nurse as defined in sections 148.171 to 148.285. As part of the 212.16 assessment, the county public health nurse will consult with the 212.17 recipient or responsible party and identify the most appropriate 212.18 person to provide supervision of the personal care assistant. 212.19 The qualified professional shall perform the duties described in 212.20 Minnesota Rules, part 9505.0335, subpart 4. 212.21 Sec. 39. Minnesota Statutes 1998, section 256B.0625, 212.22 subdivision 26, is amended to read: 212.23 Subd. 26. [SPECIAL EDUCATION SERVICES.] (a) Medical 212.24 assistance covers medical services identified in a recipient's 212.25 individualized education plan and covered under the medical 212.26 assistance state plan. Covered services include occupational 212.27 therapy, physical therapy, speech-language therapy, clinical 212.28 psychological services, nursing services, school psychological 212.29 services, school social work services, personal care assistants 212.30 serving as management aides, assistive technology devices, 212.31 transportation services, and other services covered under the 212.32 medical assistance state plan. The services may be provided by 212.33 a Minnesota school district that is enrolled as a medical 212.34 assistance provider or its subcontractor, and only if the 212.35 services meet all the requirements otherwise applicable if the 212.36 service had been provided by a provider other than a school 213.1 district, in the following areas: medical necessity, 213.2 physician's orders, documentation, personnel qualifications, and 213.3 prior authorization requirements. The nonfederal share of costs 213.4 for services provided under this subdivision is the 213.5 responsibility of the local school district as provided in 213.6 section 125A.74. Services listed in a child's individual 213.7 education plan are eligible for medical assistance reimbursement 213.8 only if those services meet criteria for federal financial 213.9 participation under the Medicaid program. 213.10 (b) Approval of health-related services for inclusion in 213.11 the individual education plan does not require prior 213.12 authorization for purposes of reimbursement under this chapter. 213.13 The commissioner may require physician review and approval of 213.14 the plan not more than once annually or upon any modification of 213.15 the individual education plan that reflects a change in 213.16 health-related services. 213.17 (c) Services of a speech-language pathologist provided 213.18 under this section are covered notwithstanding Minnesota Rules, 213.19 part 9505.0390, subpart 1, item L, if the person: 213.20 (1) holds a masters degree in speech-language pathology; 213.21 (2) is licensed by the Minnesota board of teaching as an 213.22 educational speech-language pathologist; and 213.23 (3) either has a certificate of clinical competence from 213.24 the American Speech and Hearing Association, has completed the 213.25 equivalent educational requirements and work experience 213.26 necessary for the certificate or has completed the academic 213.27 program and is acquiring supervised work experience to qualify 213.28 for the certificate. 213.29 (d) Medical assistance coverage for medically necessary 213.30 services provided under other subdivisions in this section may 213.31 not be denied solely on the basis that the same or similar 213.32 services are covered under this subdivision. 213.33 (e) The commissioner shall develop and implement package 213.34 rates, bundled rates, or per diem rates for special education 213.35 services under which separately covered services are grouped 213.36 together and billed as a unit in order to reduce administrative 214.1 complexity. 214.2 (f) The commissioner shall develop a cost-based payment 214.3 structure for payment of these services. 214.4 (g) Effective July 1, 2000, medical assistance services 214.5 provided under an individual education plan or an individual 214.6 family service plan by local school districts shall not count 214.7 against medical assistance authorization thresholds for that 214.8 child. 214.9 (Effective Date: Section 39 (256B.0625, subdivision 26) is 214.10 effective July 1, 2000.) 214.11 Sec. 40. Minnesota Statutes 1998, section 256B.0625, 214.12 subdivision 28, is amended to read: 214.13 Subd. 28. [CERTIFIED NURSE PRACTITIONER SERVICES.] Medical 214.14 assistance covers services performed by a certified pediatric 214.15 nurse practitioner, a certified family nurse practitioner, a 214.16 certified adult nurse practitioner, a certified 214.17 obstetric/gynecological nurse practitioner, a certified neonatal 214.18 nurse practitioner, or a certified geriatric nurse practitioner 214.19 in independent practice, if services provided on an inpatient 214.20 basis are not included as part of the cost for inpatient 214.21 services included in the operating payment rate, if the services 214.22 are otherwise covered under this chapter as a physician service, 214.23 and if the service is within the scope of practice of the nurse 214.24 practitioner's license as a registered nurse, as defined in 214.25 section 148.171. 214.26 Sec. 41. Minnesota Statutes 1998, section 256B.0625, 214.27 subdivision 30, is amended to read: 214.28 Subd. 30. [OTHER CLINIC SERVICES.] (a) Medical assistance 214.29 covers rural health clinic services, federally qualified health 214.30 center services, nonprofit community health clinic services, 214.31 public health clinic services, and the services of a clinic 214.32 meeting the criteria established in rule by the commissioner. 214.33 Rural health clinic services and federally qualified health 214.34 center services mean services defined in United States Code, 214.35 title 42, section 1396d(a)(2)(B) and (C). Payment for rural 214.36 health clinic and federally qualified health center services 215.1 shall be made according to applicable federal law and regulation. 215.2 (b) A federally qualified health center that is beginning 215.3 initial operation shall submit an estimate of budgeted costs and 215.4 visits for the initial reporting period in the form and detail 215.5 required by the commissioner. A federally qualified health 215.6 center that is already in operation shall submit an initial 215.7 report using actual costs and visits for the initial reporting 215.8 period. Within 90 days of the end of its reporting period, a 215.9 federally qualified health center shall submit, in the form and 215.10 detail required by the commissioner, a report of its operations, 215.11 including allowable costs actually incurred for the period and 215.12 the actual number of visits for services furnished during the 215.13 period, and other information required by the commissioner. 215.14 Federally qualified health centers that file Medicare cost 215.15 reports shall provide the commissioner with a copy of the most 215.16 recent Medicare cost report filed with the Medicare program 215.17 intermediary for the reporting year which support the costs 215.18 claimed on their cost report to the state. 215.19 (c) In order to continue cost-based payment under the 215.20 medical assistance program according to paragraphs (a) and (b), 215.21 a federally qualified health center or rural health clinic must 215.22 apply for designation as an essential community provider within 215.23 six months of final adoption of rules by the department of 215.24 health according to section 62Q.19, subdivision 7. For those 215.25 federally qualified health centers and rural health clinics that 215.26 have applied for essential community provider status within the 215.27 six-month time prescribed, medical assistance payments will 215.28 continue to be made according to paragraphs (a) and (b) for the 215.29 first three years after application. For federally qualified 215.30 health centers and rural health clinics that either do not apply 215.31 within the time specified above or who have had essential 215.32 community provider status for three years, medical assistance 215.33 payments for health services provided by these entities shall be 215.34 according to the same rates and conditions applicable to the 215.35 same service provided by health care providers that are not 215.36 federally qualified health centers or rural health clinics. 216.1This paragraph takes effect only if the Minnesota health care216.2reform waiver is approved by the federal government, and remains216.3in effect for as long as the Minnesota health care reform waiver216.4remains in effect. When the waiver expires, this paragraph216.5expires, and the commissioner of human services shall publish a216.6notice in the State Register and notify the revisor of statutes.216.7 (d) Effective July 1, 1999, the provisions of paragraph (c) 216.8 requiring a federally qualified health center or a rural health 216.9 clinic to make application for an essential community provider 216.10 designation in order to have cost-based payments made according 216.11 to paragraphs (a) and (b) no longer apply. 216.12 (e) Effective January 1, 2000, payments made according to 216.13 paragraphs (a) and (b) shall be limited to the cost phase-out 216.14 schedule of the Balanced Budget Act of 1997. 216.15 Sec. 42. Minnesota Statutes 1998, section 256B.0625, 216.16 subdivision 32, is amended to read: 216.17 Subd. 32. [NUTRITIONAL PRODUCTS.](a)Medical assistance 216.18 covers nutritional products needed for nutritional 216.19 supplementation because solid food or nutrients thereof cannot 216.20 be properly absorbed by the body or needed for treatment of 216.21 phenylketonuria, hyperlysinemia, maple syrup urine disease, a 216.22 combined allergy to human milk, cow's milk, and soy formula, or 216.23 any other childhood or adult diseases, conditions, or disorders 216.24 identified by the commissioner as requiring a similarly 216.25 necessary nutritional product. Nutritional products needed for 216.26 the treatment of a combined allergy to human milk, cow's milk, 216.27 and soy formula require prior authorization. Separate payment 216.28 shall not be made for nutritional products for residents of 216.29 long-term care facilities. Payment for dietary requirements is 216.30 a component of the per diem rate paid to these facilities. 216.31(b) The commissioner shall designate a nutritional216.32supplementation products advisory committee to advise the216.33commissioner on nutritional supplementation products for which216.34payment is made. The committee shall consist of nine members,216.35one of whom shall be a physician, one of whom shall be a216.36pharmacist, two of whom shall be registered dietitians, one of217.1whom shall be a public health nurse, one of whom shall be a217.2representative of a home health care agency, one of whom shall217.3be a provider of long-term care services, and two of whom shall217.4be consumers of nutritional supplementation products. Committee217.5members shall serve two-year terms and shall serve without217.6compensation.217.7(c) The advisory committee shall review and recommend217.8nutritional supplementation products which require prior217.9authorization. The commissioner shall develop procedures for217.10the operation of the advisory committee so that the advisory217.11committee operates in a manner parallel to the drug formulary217.12committee.217.13 Sec. 43. Minnesota Statutes 1998, section 256B.0625, 217.14 subdivision 35, is amended to read: 217.15 Subd. 35. [FAMILY COMMUNITY SUPPORT SERVICES.] Medical 217.16 assistance covers family community support services as defined 217.17 in section 245.4871, subdivision 17. In addition to the 217.18 provisions of section 245.4871, and to the extent authorized by 217.19 rules promulgated by the state agency, medical assistance covers 217.20 the following services as family community support services: 217.21 (1) services identified in an individual treatment plan 217.22 when provided by a trained mental health behavioral aide under 217.23 the direction of a mental health practitioner or mental health 217.24 professional; 217.25 (2) mental health crisis intervention and crisis 217.26 stabilization services provided outside of hospital inpatient 217.27 settings; and 217.28 (3) the therapeutic components of preschool and therapeutic 217.29 camp programs. 217.30 Sec. 44. Minnesota Statutes 1998, section 256B.0627, 217.31 subdivision 1, is amended to read: 217.32 Subdivision 1. [DEFINITION.] (a) "Assessment" means a 217.33 review and evaluation of a recipient's need for home care 217.34 services conducted in person. Assessments for private duty 217.35 nursing shall be conducted by a registered private duty nurse. 217.36 Assessments for home health agency services shall be conducted 218.1 by a home health agency nurse. Assessments for personal 218.2 care assistant services shall be conducted by the county public 218.3 health nurse or a certified public health nurse under contract 218.4 with the county.An initial assessment for personal care218.5services is conducted on individuals who are requesting personal218.6care services or for those consumers who have never had a public218.7health nurse assessment. The initialA face-to-face assessment 218.8 must include: aface-to-facehealth status assessment and 218.9 determination ofbaselineneed, evaluation of service outcomes, 218.10 collection ofinitialcase data, identification of appropriate 218.11 services and service plan development or modification, 218.12 coordination ofinitialservices, referrals and follow-up to 218.13 appropriate payers and community resources, completion of 218.14 required reports, obtaining service authorization, and consumer 218.15 education. Areassessment visitface-to-face assessment for 218.16 personal care services is conducted on those recipients who have 218.17 never had a county public health nurse assessment. A 218.18 face-to-face assessment must occur at least annually or when 218.19 there is a significant change inconsumerrecipient condition 218.20andor when there is a change in the need for personal care 218.21 assistant services.The reassessment visitA service update may 218.22 substitute for the annual face-to-face assessment when there is 218.23 not a significant change in recipient condition or a change in 218.24 the need for personal care assistant service. A service update 218.25 or review for temporary increase includes a review of initial 218.26 baseline data, evaluation of service outcomes, redetermination 218.27 of service need, modification of service plan and appropriate 218.28 referrals, update of initial forms, obtaining service 218.29 authorization, and on going consumer education. Assessments for 218.30 medical assistance home care services for mental retardation or 218.31 related conditions and alternative care services for 218.32 developmentally disabled home and community-based waivered 218.33 recipients may be conducted by the county public health nurse to 218.34 ensure coordination and avoid duplication. Assessments must be 218.35 completed on forms provided by the commissioner within 30 days 218.36 of a request for home care services by a recipient or 219.1 responsible party. 219.2 (b) "Care plan" means a written description of personal 219.3 care assistant services developed by theagency nursequalified 219.4 professional with the recipient or responsible party to be used 219.5 by the personal care assistant with a copy provided to the 219.6 recipient or responsible party. 219.7 (c) "Home care services" means a health service, determined 219.8 by the commissioner as medically necessary, that is ordered by a 219.9 physician and documented in a service plan that is reviewed by 219.10 the physician at least once every6062 days for the provision 219.11 of home health services, or private duty nursing, or at least 219.12 once every 365 days for personal care. Home care services are 219.13 provided to the recipient at the recipient's residence that is a 219.14 place other than a hospital or long-term care facility or as 219.15 specified in section 256B.0625. 219.16 (d) "Medically necessary" has the meaning given in 219.17 Minnesota Rules, parts 9505.0170 to 9505.0475. 219.18 (e) "Personal care assistant" means a person who: (1) is 219.19 at least 18 years old, except for persons 16 to 18 years of age 219.20 who participated in a related school-based job training program 219.21 or have completed a certified home health aide competency 219.22 evaluation; (2) is able to effectively communicate with the 219.23 recipient and personal care provider organization; (3) effective 219.24 July 1, 1996, has completed one of the training requirements as 219.25 specified in Minnesota Rules, part 9505.0335, subpart 3, items A 219.26 to D; (4) has the ability to, and provides covered personal care 219.27 services according to the recipient's care plan, responds 219.28 appropriately to recipient needs, and reports changes in the 219.29 recipient's condition to the supervisingregistered nurse219.30 qualified professional; 219.31 (5) is not a consumer of personal care services; and (6) is 219.32 subject to criminal background checks and procedures specified 219.33 in section 245A.04.An individual who has been convicted of a219.34crime specified in Minnesota Rules, part 4668.0020, subpart 14,219.35or a comparable crime in another jurisdiction is disqualified219.36from being a personal care assistant, unless the individual220.1meets the rehabilitation criteria specified in Minnesota Rules,220.2part 4668.0020, subpart 15.220.3 (f) "Personal care provider organization" means an 220.4 organization enrolled to provide personal care services under 220.5 the medical assistance program that complies with the 220.6 following: (1) owners who have a five percent interest or more, 220.7 and managerial officials are subject to a background study as 220.8 provided in section 245A.04. This applies to currently enrolled 220.9 personal care provider organizations and those agencies seeking 220.10 enrollment as a personal care provider organization. An 220.11 organization will be barred from enrollment if an owner or 220.12 managerial official of the organization has been convicted of a 220.13 crime specified in section 245A.04, or a comparable crime in 220.14 another jurisdiction, unless the owner or managerial official 220.15 meets the reconsideration criteria specified in section 245A.04; 220.16 (2) the organization must maintain a surety bond and liability 220.17 insurance throughout the duration of enrollment and provides 220.18 proof thereof. The insurer must notify the department of human 220.19 services of the cancellation or lapse of policy; and (3) the 220.20 organization must maintain documentation of services as 220.21 specified in Minnesota Rules, part 9505.2175, subpart 7, as well 220.22 as evidence of compliance with personal care assistant training 220.23 requirements. 220.24 (g) "Responsible party" means an individual residing with a 220.25 recipient of personal care services who is capable of providing 220.26 the supportive care necessary to assist the recipient to live in 220.27 the community, is at least 18 years old, and is not a personal 220.28 care assistant. Responsible parties who are parents of minors 220.29 or guardians of minors or incapacitated persons may delegate the 220.30 responsibility to another adult during a temporary absence of at 220.31 least 24 hours but not more than six months. The person 220.32 delegated as a responsible party must be able to meet the 220.33 definition of responsible party, except that the delegated 220.34 responsible party is required to reside with the recipient only 220.35 while serving as the responsible party. Foster care license 220.36 holders may be designated the responsible party for residents of 221.1 the foster care home if case management is provided as required 221.2 in section 256B.0625, subdivision 19a. For persons who, as of 221.3 April 1, 1992, are sharing personal care services in order to 221.4 obtain the availability of 24-hour coverage, an employee of the 221.5 personal care provider organization may be designated as the 221.6 responsible party if case management is provided as required in 221.7 section 256B.0625, subdivision 19a. 221.8 (h) "Service plan" means a written description of the 221.9 services needed based on the assessment developed by the nurse 221.10 who conducts the assessment together with the recipient or 221.11 responsible party. The service plan shall include a description 221.12 of the covered home care services, frequency and duration of 221.13 services, and expected outcomes and goals. The recipient and 221.14 the provider chosen by the recipient or responsible party must 221.15 be given a copy of the completed service plan within 30 calendar 221.16 days of the request for home care services by the recipient or 221.17 responsible party. 221.18 (i) "Skilled nurse visits" are provided in a recipient's 221.19 residence under a plan of care or service plan that specifies a 221.20 level of care which the nurse is qualified to provide. These 221.21 services are: 221.22 (1) nursing services according to the written plan of care 221.23 or service plan and accepted standards of medical and nursing 221.24 practice in accordance with chapter 148; 221.25 (2) services which due to the recipient's medical condition 221.26 may only be safely and effectively provided by a registered 221.27 nurse or a licensed practical nurse; 221.28 (3) assessments performed only by a registered nurse; and 221.29 (4) teaching and training the recipient, the recipient's 221.30 family, or other caregivers requiring the skills of a registered 221.31 nurse or licensed practical nurse. 221.32 Sec. 45. Minnesota Statutes 1998, section 256B.0627, 221.33 subdivision 2, is amended to read: 221.34 Subd. 2. [SERVICES COVERED.] Home care services covered 221.35 under this section include: 221.36 (1) nursing services under section 256B.0625, subdivision 222.1 6a; 222.2 (2) private duty nursing services under section 256B.0625, 222.3 subdivision 7; 222.4 (3) home health aide services under section 256B.0625, 222.5 subdivision 6a; 222.6 (4) personal care services under section 256B.0625, 222.7 subdivision 19a; 222.8 (5)nursingsupervision of personal care assistant services 222.9 provided by a qualified professional under section 256B.0625, 222.10 subdivision 19a;and222.11 (6) consulting professional of personal care assistant 222.12 services under the fiscal agent option as specified in 222.13 subdivision 10; 222.14 (7) face-to-face assessments by county public health nurses 222.15 for services under section 256B.0625, subdivision 19a; and 222.16 (8) service updates and review of temporary increases for 222.17 personal care assistant services by the county public health 222.18 nurse for services under section 256B.0625, subdivision 19a. 222.19 Sec. 46. Minnesota Statutes 1998, section 256B.0627, 222.20 subdivision 4, is amended to read: 222.21 Subd. 4. [PERSONAL CARE SERVICES.] (a) The personal care 222.22 services that are eligible for payment are the following: 222.23 (1) bowel and bladder care; 222.24 (2) skin care to maintain the health of the skin; 222.25 (3) repetitive maintenance range of motion, muscle 222.26 strengthening exercises, and other tasks specific to maintaining 222.27 a recipient's optimal level of function; 222.28 (4) respiratory assistance; 222.29 (5) transfers and ambulation; 222.30 (6) bathing, grooming, and hairwashing necessary for 222.31 personal hygiene; 222.32 (7) turning and positioning; 222.33 (8) assistance with furnishing medication that is 222.34 self-administered; 222.35 (9) application and maintenance of prosthetics and 222.36 orthotics; 223.1 (10) cleaning medical equipment; 223.2 (11) dressing or undressing; 223.3 (12) assistance with eating and meal preparation and 223.4 necessary grocery shopping; 223.5 (13) accompanying a recipient to obtain medical diagnosis 223.6 or treatment; 223.7 (14) assisting, monitoring, or prompting the recipient to 223.8 complete the services in clauses (1) to (13); 223.9 (15) redirection, monitoring, and observation that are 223.10 medically necessary and an integral part of completing the 223.11 personal care services described in clauses (1) to (14); 223.12 (16) redirection and intervention for behavior, including 223.13 observation and monitoring; 223.14 (17) interventions for seizure disorders, including 223.15 monitoring and observation if the recipient has had a seizure 223.16 that requires intervention within the past three months; 223.17 (18) tracheostomy suctioning using a clean procedure if the 223.18 procedure is properly delegated by a registered nurse. Before 223.19 this procedure can be delegated to a personal care assistant, a 223.20 registered nurse must determine that the tracheostomy suctioning 223.21 can be accomplished utilizing a clean rather than a sterile 223.22 procedure and must ensure that the personal care assistant has 223.23 been taught the proper procedure; and 223.24 (19) incidental household services that are an integral 223.25 part of a personal care service described in clauses (1) to (18). 223.26 For purposes of this subdivision, monitoring and observation 223.27 means watching for outward visible signs that are likely to 223.28 occur and for which there is a covered personal care service or 223.29 an appropriate personal care intervention. For purposes of this 223.30 subdivision, a clean procedure refers to a procedure that 223.31 reduces the numbers of microorganisms or prevents or reduces the 223.32 transmission of microorganisms from one person or place to 223.33 another. A clean procedure may be used beginning 14 days after 223.34 insertion. 223.35 (b) The personal care services that are not eligible for 223.36 payment are the following: 224.1 (1) services not ordered by the physician; 224.2 (2) assessments by personal care provider organizations or 224.3 by independently enrolled registered nurses; 224.4 (3) services that are not in the service plan; 224.5 (4) services provided by the recipient's spouse, legal 224.6 guardian for an adult or child recipient, or parent of a 224.7 recipient under age 18; 224.8 (5) services provided by a foster care provider of a 224.9 recipient who cannot direct the recipient's own care, unless 224.10 monitored by a county or state case manager under section 224.11 256B.0625, subdivision 19a; 224.12 (6) services provided by the residential or program license 224.13 holder in a residence for more than four persons; 224.14 (7) services that are the responsibility of a residential 224.15 or program license holder under the terms of a service agreement 224.16 and administrative rules; 224.17 (8) sterile procedures; 224.18 (9) injections of fluids into veins, muscles, or skin; 224.19 (10) services provided by parents of adult recipients, 224.20 adult children, oradultsiblings of the recipient, unless these 224.21 relatives meet one of the following hardship criteria and the 224.22 commissioner waives this requirement: 224.23 (i) the relative resigns from a part-time or full-time job 224.24 to provide personal care for the recipient; 224.25 (ii) the relative goes from a full-time to a part-time job 224.26 with less compensation to provide personal care for the 224.27 recipient; 224.28 (iii) the relative takes a leave of absence without pay to 224.29 provide personal care for the recipient; 224.30 (iv) the relative incurs substantial expenses by providing 224.31 personal care for the recipient; or 224.32 (v) because of labor conditions, special language needs, or 224.33 intermittent hours of care needed, the relative is needed in 224.34 order to provide an adequate number of qualified personal care 224.35 assistants to meet the medical needs of the recipient; 224.36 (11) homemaker services that are not an integral part of a 225.1 personal care services; 225.2 (12) home maintenance, or chore services; 225.3 (13) services not specified under paragraph (a); and 225.4 (14) services not authorized by the commissioner or the 225.5 commissioner's designee. 225.6 Sec. 47. Minnesota Statutes 1998, section 256B.0627, 225.7 subdivision 5, is amended to read: 225.8 Subd. 5. [LIMITATION ON PAYMENTS.] Medical assistance 225.9 payments for home care services shall be limited according to 225.10 this subdivision. 225.11 (a) [LIMITS ON SERVICES WITHOUT PRIOR AUTHORIZATION.] A 225.12 recipient may receive the following home care services during a 225.13 calendar year: 225.14 (1)any initial assessmentup to two face-to-face 225.15 assessments to determine a recipient's need for personal care 225.16 assistant services; 225.17 (2)up to two reassessments per yearone service update 225.18 done to determine a recipient's need for personal care services; 225.19 and 225.20 (3) up to five skilled nurse visits. 225.21 (b) [PRIOR AUTHORIZATION; EXCEPTIONS.] All home care 225.22 services above the limits in paragraph (a) must receive the 225.23 commissioner's prior authorization, except when: 225.24 (1) the home care services were required to treat an 225.25 emergency medical condition that if not immediately treated 225.26 could cause a recipient serious physical or mental disability, 225.27 continuation of severe pain, or death. The provider must 225.28 request retroactive authorization no later than five working 225.29 days after giving the initial service. The provider must be 225.30 able to substantiate the emergency by documentation such as 225.31 reports, notes, and admission or discharge histories; 225.32 (2) the home care services were provided on or after the 225.33 date on which the recipient's eligibility began, but before the 225.34 date on which the recipient was notified that the case was 225.35 opened. Authorization will be considered if the request is 225.36 submitted by the provider within 20 working days of the date the 226.1 recipient was notified that the case was opened; 226.2 (3) a third-party payor for home care services has denied 226.3 or adjusted a payment. Authorization requests must be submitted 226.4 by the provider within 20 working days of the notice of denial 226.5 or adjustment. A copy of the notice must be included with the 226.6 request; 226.7 (4) the commissioner has determined that a county or state 226.8 human services agency has made an error; or 226.9 (5) the professional nurse determines an immediate need for 226.10 up to 40 skilled nursing or home health aide visits per calendar 226.11 year and submits a request for authorization within 20 working 226.12 days of the initial service date, and medical assistance is 226.13 determined to be the appropriate payer. 226.14 (c) [RETROACTIVE AUTHORIZATION.] A request for retroactive 226.15 authorization will be evaluated according to the same criteria 226.16 applied to prior authorization requests. 226.17 (d) [ASSESSMENT AND SERVICE PLAN.] Assessments under 226.18 section 256B.0627, subdivision 1, paragraph (a), shall be 226.19 conducted initially, and at least annually thereafter, in person 226.20 with the recipient and result in a completed service plan using 226.21 forms specified by the commissioner. Within 30 days of 226.22 recipient or responsible party request for home care services, 226.23 the assessment, the service plan, and other information 226.24 necessary to determine medical necessity such as diagnostic or 226.25 testing information, social or medical histories, and hospital 226.26 or facility discharge summaries shall be submitted to the 226.27 commissioner. For personal care services: 226.28 (1) The amount and type of service authorized based upon 226.29 the assessment and service plan will follow the recipient if the 226.30 recipient chooses to change providers. 226.31 (2) If the recipient's medical need changes, the 226.32 recipient's provider may assess the need for a change in service 226.33 authorization and request the change from the county public 226.34 health nurse. Within 30 days of the request, the public health 226.35 nurse will determine whether to request the change in services 226.36 based upon the provider assessment, or conduct a home visit to 227.1 assess the need and determine whether the change is appropriate. 227.2 (3) To continue to receive personal care services after the 227.3 first year, the recipient or the responsible party, in 227.4 conjunction with the public health nurse, may complete a service 227.5 update on forms developed by the commissioner according to 227.6 criteria and procedures in subdivision 1.The service update227.7may substitute for the annual reassessment described in227.8subdivision 1.227.9 (e) [PRIOR AUTHORIZATION.] The commissioner, or the 227.10 commissioner's designee, shall review the assessment,the227.11 service update, request for temporary services, service plan, 227.12 and any additional information that is submitted. The 227.13 commissioner shall, within 30 days after receiving a complete 227.14 request, assessment, and service plan, authorize home care 227.15 services as follows: 227.16 (1) [HOME HEALTH SERVICES.] All home health services 227.17 provided by a licensed nurse or a home health aide must be prior 227.18 authorized by the commissioner or the commissioner's designee. 227.19 Prior authorization must be based on medical necessity and 227.20 cost-effectiveness when compared with other care options. When 227.21 home health services are used in combination with personal care 227.22 and private duty nursing, the cost of all home care services 227.23 shall be considered for cost-effectiveness. The commissioner 227.24 shall limit nurse and home health aide visits to no more than 227.25 one visit each per day. 227.26 (2) [PERSONAL CARE SERVICES.] (i) All personal care 227.27 services andregistered nursesupervision by a qualified 227.28 professional must be prior authorized by the commissioner or the 227.29 commissioner's designee except for the assessments established 227.30 in paragraph (a). The amount of personal care services 227.31 authorized must be based on the recipient's home care rating. A 227.32 child may not be found to be dependent in an activity of daily 227.33 living if because of the child's age an adult would either 227.34 perform the activity for the child or assist the child with the 227.35 activity and the amount of assistance needed is similar to the 227.36 assistance appropriate for a typical child of the same age. 228.1 Based on medical necessity, the commissioner may authorize: 228.2 (A) up to two times the average number of direct care hours 228.3 provided in nursing facilities for the recipient's comparable 228.4 case mix level; or 228.5 (B) up to three times the average number of direct care 228.6 hours provided in nursing facilities for recipients who have 228.7 complex medical needs or are dependent in at least seven 228.8 activities of daily living and need physical assistance with 228.9 eating or have a neurological diagnosis; or 228.10 (C) up to 60 percent of the average reimbursement rate, as 228.11 of July 1, 1991, for care provided in a regional treatment 228.12 center for recipients who have Level I behavior, plus any 228.13 inflation adjustment as provided by the legislature for personal 228.14 care service; or 228.15 (D) up to the amount the commissioner would pay, as of July 228.16 1, 1991, plus any inflation adjustment provided for home care 228.17 services, for care provided in a regional treatment center for 228.18 recipients referred to the commissioner by a regional treatment 228.19 center preadmission evaluation team. For purposes of this 228.20 clause, home care services means all services provided in the 228.21 home or community that would be included in the payment to a 228.22 regional treatment center; or 228.23 (E) up to the amount medical assistance would reimburse for 228.24 facility care for recipients referred to the commissioner by a 228.25 preadmission screening team established under section 256B.0911 228.26 or 256B.092; and 228.27 (F) a reasonable amount of time for the provision of 228.28nursingsupervision by a qualified professional of personal care 228.29 services. 228.30 (ii) The number of direct care hours shall be determined 228.31 according to the annual cost report submitted to the department 228.32 by nursing facilities. The average number of direct care hours, 228.33 as established by May 1, 1992, shall be calculated and 228.34 incorporated into the home care limits on July 1, 1992. These 228.35 limits shall be calculated to the nearest quarter hour. 228.36 (iii) The home care rating shall be determined by the 229.1 commissioner or the commissioner's designee based on information 229.2 submitted to the commissioner by the county public health nurse 229.3 on forms specified by the commissioner. The home care rating 229.4 shall be a combination of current assessment tools developed 229.5 under sections 256B.0911 and 256B.501 with an addition for 229.6 seizure activity that will assess the frequency and severity of 229.7 seizure activity and with adjustments, additions, and 229.8 clarifications that are necessary to reflect the needs and 229.9 conditions of recipients who need home care including children 229.10 and adults under 65 years of age. The commissioner shall 229.11 establish these forms and protocols under this section and shall 229.12 use an advisory group, including representatives of recipients, 229.13 providers, and counties, for consultation in establishing and 229.14 revising the forms and protocols. 229.15 (iv) A recipient shall qualify as having complex medical 229.16 needs if the care required is difficult to perform and because 229.17 of recipient's medical condition requires more time than 229.18 community-based standards allow or requires more skill than 229.19 would ordinarily be required and the recipient needs or has one 229.20 or more of the following: 229.21 (A) daily tube feedings; 229.22 (B) daily parenteral therapy; 229.23 (C) wound or decubiti care; 229.24 (D) postural drainage, percussion, nebulizer treatments, 229.25 suctioning, tracheotomy care, oxygen, mechanical ventilation; 229.26 (E) catheterization; 229.27 (F) ostomy care; 229.28 (G) quadriplegia; or 229.29 (H) other comparable medical conditions or treatments the 229.30 commissioner determines would otherwise require institutional 229.31 care. 229.32 (v) A recipient shall qualify as having Level I behavior if 229.33 there is reasonable supporting evidence that the recipient 229.34 exhibits, or that without supervision, observation, or 229.35 redirection would exhibit, one or more of the following 229.36 behaviors that cause, or have the potential to cause: 230.1 (A) injury to the recipient's own body; 230.2 (B) physical injury to other people; or 230.3 (C) destruction of property. 230.4 (vi) Time authorized for personal care relating to Level I 230.5 behavior in subclause (v), items (A) to (C), shall be based on 230.6 the predictability, frequency, and amount of intervention 230.7 required. 230.8 (vii) A recipient shall qualify as having Level II behavior 230.9 if the recipient exhibits on a daily basis one or more of the 230.10 following behaviors that interfere with the completion of 230.11 personal care services under subdivision 4, paragraph (a): 230.12 (A) unusual or repetitive habits; 230.13 (B) withdrawn behavior; or 230.14 (C) offensive behavior. 230.15 (viii) A recipient with a home care rating of Level II 230.16 behavior in subclause (vii), items (A) to (C), shall be rated as 230.17 comparable to a recipient with complex medical needs under 230.18 subclause (iv). If a recipient has both complex medical needs 230.19 and Level II behavior, the home care rating shall be the next 230.20 complex category up to the maximum rating under subclause (i), 230.21 item (B). 230.22 (3) [PRIVATE DUTY NURSING SERVICES.] All private duty 230.23 nursing services shall be prior authorized by the commissioner 230.24 or the commissioner's designee. Prior authorization for private 230.25 duty nursing services shall be based on medical necessity and 230.26 cost-effectiveness when compared with alternative care options. 230.27 The commissioner may authorize medically necessary private duty 230.28 nursing services in quarter-hour units when: 230.29 (i) the recipient requires more individual and continuous 230.30 care than can be provided during a nurse visit; or 230.31 (ii) the cares are outside of the scope of services that 230.32 can be provided by a home health aide or personal care assistant. 230.33 The commissioner may authorize: 230.34 (A) up to two times the average amount of direct care hours 230.35 provided in nursing facilities statewide for case mix 230.36 classification "K" as established by the annual cost report 231.1 submitted to the department by nursing facilities in May 1992; 231.2 (B) private duty nursing in combination with other home 231.3 care services up to the total cost allowed under clause (2); 231.4 (C) up to 16 hours per day if the recipient requires more 231.5 nursing than the maximum number of direct care hours as 231.6 established in item (A) and the recipient meets the hospital 231.7 admission criteria established under Minnesota Rules, parts 231.8 9505.0500 to 9505.0540. 231.9 The commissioner may authorize up to 16 hours per day of 231.10 medically necessary private duty nursing services or up to 24 231.11 hours per day of medically necessary private duty nursing 231.12 services until such time as the commissioner is able to make a 231.13 determination of eligibility for recipients who are 231.14 cooperatively applying for home care services under the 231.15 community alternative care program developed under section 231.16 256B.49, or until it is determined by the appropriate regulatory 231.17 agency that a health benefit plan is or is not required to pay 231.18 for appropriate medically necessary health care services. 231.19 Recipients or their representatives must cooperatively assist 231.20 the commissioner in obtaining this determination. Recipients 231.21 who are eligible for the community alternative care program may 231.22 not receive more hours of nursing under this section than would 231.23 otherwise be authorized under section 256B.49. 231.24 (4) [VENTILATOR-DEPENDENT RECIPIENTS.] If the recipient is 231.25 ventilator-dependent, the monthly medical assistance 231.26 authorization for home care services shall not exceed what the 231.27 commissioner would pay for care at the highest cost hospital 231.28 designated as a long-term hospital under the Medicare program. 231.29 For purposes of this clause, home care services means all 231.30 services provided in the home that would be included in the 231.31 payment for care at the long-term hospital. 231.32 "Ventilator-dependent" means an individual who receives 231.33 mechanical ventilation for life support at least six hours per 231.34 day and is expected to be or has been dependent for at least 30 231.35 consecutive days. 231.36 (f) [PRIOR AUTHORIZATION; TIME LIMITS.] The commissioner 232.1 or the commissioner's designee shall determine the time period 232.2 for which a prior authorization shall be effective. If the 232.3 recipient continues to require home care services beyond the 232.4 duration of the prior authorization, the home care provider must 232.5 request a new prior authorization. Under no circumstances, 232.6 other than the exceptions in paragraph (b), shall a prior 232.7 authorization be valid prior to the date the commissioner 232.8 receives the request or for more than 12 months. A recipient 232.9 who appeals a reduction in previously authorized home care 232.10 services may continue previously authorized services, other than 232.11 temporary services under paragraph (h), pending an appeal under 232.12 section 256.045. The commissioner must provide a detailed 232.13 explanation of why the authorized services are reduced in amount 232.14 from those requested by the home care provider. 232.15 (g) [APPROVAL OF HOME CARE SERVICES.] The commissioner or 232.16 the commissioner's designee shall determine the medical 232.17 necessity of home care services, the level of caregiver 232.18 according to subdivision 2, and the institutional comparison 232.19 according to this subdivision, the cost-effectiveness of 232.20 services, and the amount, scope, and duration of home care 232.21 services reimbursable by medical assistance, based on the 232.22 assessment, primary payer coverage determination information as 232.23 required, the service plan, the recipient's age, the cost of 232.24 services, the recipient's medical condition, and diagnosis or 232.25 disability. The commissioner may publish additional criteria 232.26 for determining medical necessity according to section 256B.04. 232.27 (h) [PRIOR AUTHORIZATION REQUESTS; TEMPORARY SERVICES.] 232.28 The agency nurse, the independently enrolled private duty nurse, 232.29 or county public health nurse may request a temporary 232.30 authorization for home care services by telephone. The 232.31 commissioner may approve a temporary level of home care services 232.32 based on the assessment, and service or care plan information, 232.33 and primary payer coverage determination information as required. 232.34 Authorization for a temporary level of home care services 232.35 including nurse supervision is limited to the time specified by 232.36 the commissioner, but shall not exceed 45 days, unless extended 233.1 because the county public health nurse has not completed the 233.2 required assessment and service plan, or the commissioner's 233.3 determination has not been made. The level of services 233.4 authorized under this provision shall have no bearing on a 233.5 future prior authorization. 233.6 (i) [PRIOR AUTHORIZATION REQUIRED IN FOSTER CARE SETTING.] 233.7 Home care services provided in an adult or child foster care 233.8 setting must receive prior authorization by the department 233.9 according to the limits established in paragraph (a). 233.10 The commissioner may not authorize: 233.11 (1) home care services that are the responsibility of the 233.12 foster care provider under the terms of the foster care 233.13 placement agreement and administrative rules. Requests for home 233.14 care services for recipients residing in a foster care setting 233.15 must include the foster care placement agreement and 233.16 determination of difficulty of care; 233.17 (2) personal care services when the foster care license 233.18 holder is also the personal care provider or personal care 233.19 assistant unless the recipient can direct the recipient's own 233.20 care, or case management is provided as required in section 233.21 256B.0625, subdivision 19a; 233.22 (3) personal care services when the responsible party is an 233.23 employee of, or under contract with, or has any direct or 233.24 indirect financial relationship with the personal care provider 233.25 or personal care assistant, unless case management is provided 233.26 as required in section 256B.0625, subdivision 19a; 233.27 (4) home care services when the number of foster care 233.28 residents is greater than four unless the county responsible for 233.29 the recipient's foster placement made the placement prior to 233.30 April 1, 1992, requests that home care services be provided, and 233.31 case management is provided as required in section 256B.0625, 233.32 subdivision 19a; or 233.33 (5) home care services when combined with foster care 233.34 payments, other than room and board payments that exceed the 233.35 total amount that public funds would pay for the recipient's 233.36 care in a medical institution. 234.1 Sec. 48. Minnesota Statutes 1998, section 256B.0627, 234.2 subdivision 8, is amended to read: 234.3 Subd. 8. [SHARED PERSONAL CARE ASSISTANT SERVICES; SHARED234.4CARE.] (a) Medical assistance payments for shared personal care 234.5 assistanceshared careservices shall be limited according to 234.6 this subdivision. 234.7 (b) Recipients of personal care assistant services may 234.8 share staff and the commissioner shall provide a rate system for 234.9 shared personal care assistant services. For two persons 234.10 sharingcareservices, the rate paid to a provider shall not 234.11 exceed 1-1/2 times the rate paid for serving a single 234.12 individual, and for three persons sharingcareservices, the 234.13 rate paid to a provider shall not exceed twice the rate paid for 234.14 serving a single individual. These rates apply only to 234.15 situations in which all recipients were present and received 234.16 sharedcareservices on the date for which the service is 234.17 billed. No more than three persons may receive sharedcare234.18 services from a personal care assistant in a single setting. 234.19 (c) Sharedcareservice is the provision of personal care 234.20 services by a personal care assistant to two or three recipients 234.21 at the same time and in the same setting. For the purposes of 234.22 this subdivision, "setting" means: 234.23 (1) the home or foster care home of one of the individual 234.24 recipients; or 234.25 (2) a child care program in which all recipients served by 234.26 one personal care assistant are participating, which is licensed 234.27 under chapter 245A or operated by a local school district or 234.28 private school. 234.29 The provisions of this subdivision do not apply when a 234.30 personal care assistant is caring for multiple recipients in 234.31 more than one setting. 234.32 (d) The recipient or the recipient's responsible party, in 234.33 conjunction with the county public health nurse, shall determine: 234.34 (1) whether sharedcarepersonal care assistant services is 234.35 an appropriate option based on the individual needs and 234.36 preferences of the recipient; and 235.1 (2) the amount of sharedcareservices allocated as part of 235.2 the overall authorization of personal care services. 235.3 The recipient or the responsible party, in conjunction with 235.4 the supervisingregistered nursequalified professional, shall 235.5approvearrange the setting,and grouping, and arrangementof 235.6 sharedcareservices based on the individual needs and 235.7 preferences of the recipients. Decisions on the selection of 235.8 recipients to sharecareservices must be based on the ages of 235.9 the recipients, compatibility, and coordination of their care 235.10 needs. 235.11 (e) The following items must be considered by the recipient 235.12 or the responsible party and the supervisingnursequalified 235.13 professional, and documented in the recipient'scare planhealth 235.14 service record: 235.15 (1) the additional qualifications needed by the personal 235.16 care assistant to provide care to several recipients in the same 235.17 setting; 235.18 (2) the additional training and supervision needed by the 235.19 personal care assistant to ensure that the needs of the 235.20 recipient are met appropriately and safely. The provider must 235.21 provide on-site supervision by aregistered nursequalified 235.22 professional within the first 14 days of sharedcareservices, 235.23 and monthly thereafter; 235.24 (3) the setting in which the sharedcareservices will be 235.25 provided; 235.26 (4) the ongoing monitoring and evaluation of the 235.27 effectiveness and appropriateness of the service and process 235.28 used to make changes in service or setting; and 235.29 (5) a contingency plan which accounts for absence of the 235.30 recipient in a sharedcareservices setting due to illness or 235.31 other circumstances and staffing contingencies. 235.32 (f) The provider must offer the recipient or the 235.33 responsible party the option of shared orindividualone-on-one 235.34 personal care assistantcareservices. The recipient or the 235.35 responsible party can withdraw from participating in a shared 235.36careservices arrangement at any time. 236.1 (g) In addition to documentation requirements under 236.2 Minnesota Rules, part 9505.2175, a personal care provider must 236.3 meet documentation requirements for shared personal 236.4 care assistant services and must document the following in the 236.5 health service record for each individual recipient sharingcare236.6 services: 236.7 (1)authorizationpermission by the recipient or the 236.8 recipient's responsible party, if any, for the maximum number of 236.9 sharedcareservices hours per week chosen by the recipient; 236.10 (2)authorizationpermission by the recipient or the 236.11 recipient's responsible party, if any, for personal 236.12 care assistant services provided outside the recipient's 236.13 residence; 236.14 (3)authorizationpermission by the recipient or the 236.15 recipient's responsible party, if any, for others to receive 236.16 sharedcareservices in the recipient's residence; 236.17 (4) revocation by the recipient or the recipient's 236.18 responsible party, if any, of the sharedcareservice 236.19 authorization, or the sharedcareservice to be provided to 236.20 others in the recipient's residence, or the sharedcareservice 236.21 to be provided outside the recipient's residence; 236.22 (5) supervision of the sharedcarepersonal care assistant 236.23 services by thesupervisory nursequalified professional, 236.24 including the date, time of day, number of hours spent 236.25 supervising the provision of sharedcareservices, whether the 236.26 supervision was face-to-face or another method of supervision, 236.27 changes in the recipient's condition, sharedcareservices 236.28 scheduling issues and recommendations; 236.29 (6) documentation by thepersonal care assistantqualified 236.30 professional of telephone calls or other discussions with 236.31 thesupervisory nursepersonal care assistant regarding services 236.32 being provided to the recipient; and 236.33 (7) daily documentation of the sharedcareservices 236.34 provided by each identified personal care assistant including: 236.35 (i) the names of each recipient receiving sharedcare236.36 services together; 237.1 (ii) the setting for theday's careshared services, 237.2 including the starting and ending times that the recipient 237.3 received sharedcareservices; and 237.4 (iii) notes by the personal care assistant regarding 237.5 changes in the recipient's condition, problems that may arise 237.6 from the sharing ofcareservices, scheduling issues, care 237.7 issues, and other notes as required by thesupervising nurse237.8 qualified professional. 237.9 (h) Unless otherwise provided in this subdivision, all 237.10 other statutory and regulatory provisions relating to personal 237.11 care services apply to sharedcareservices. 237.12 Nothing in this subdivision shall be construed to reduce 237.13 the total number of hours authorized for an individual recipient. 237.14 Sec. 49. Minnesota Statutes 1998, section 256B.0627, is 237.15 amended by adding a subdivision to read: 237.16 Subd. 9. [FLEXIBLE USE OF PERSONAL CARE ASSISTANT 237.17 HOURS.] (a) The commissioner may allow for the flexible use of 237.18 personal care assistant hours. "Flexible use" means the 237.19 scheduled use of authorized hours of personal care assistant 237.20 services which vary within the length of the service 237.21 authorization in order to more effectively meet the needs and 237.22 schedule of the recipient. Recipients may use their approved 237.23 hours flexibly within the service authorization period for 237.24 medically necessary covered services specified in the assessment 237.25 required in subdivision 1. The flexible use of authorized hours 237.26 does not increase the total amount of authorized hours available 237.27 to a recipient as determined under subdivision 5. The 237.28 commissioner shall not authorize additional personal care 237.29 assistant services to supplement a service authorization that is 237.30 exhausted before the end date under a flexible service use plan, 237.31 unless the county public health nurse determines a change in 237.32 condition and a need for increased services is established. 237.33 (b) The recipient or responsible party, together with the 237.34 county public health nurse, shall determine whether flexible use 237.35 is an appropriate option based on the needs and preferences of 237.36 the recipient or responsible party, and, if appropriate, must 238.1 ensure that the allocation of hours covers the ongoing needs of 238.2 the recipient over the entire service authorization period. As 238.3 part of the assessment and service planning process, the 238.4 recipient or responsible party works with the county public 238.5 health nurse to develop a written month-to-month plan of the 238.6 projected use of personal care assistant services that is part 238.7 of the service plan and assures that: 238.8 (1) health and safety needs of the recipient will be met; 238.9 (2) total annual authorization will not exceed before the 238.10 end date; and 238.11 (3) actual use of hours will be monitored. 238.12 (c) If the actual use of personal care assistant service 238.13 varies significantly from the use projected in the plan, the 238.14 written plan must be promptly updated by the recipient or 238.15 responsible party and the county public health nurse. 238.16 (d) The recipient or responsible party, together with the 238.17 provider, must work to monitor and document the use of 238.18 authorized hours and ensure that a recipient is able to manage 238.19 services effectively throughout the authorized period. The 238.20 provider must assure that the month to month plan is 238.21 incorporated into the care plan. Upon request of the recipient 238.22 or responsible party, the provider must furnish regular updates 238.23 to the recipient or responsible party on the amount of personal 238.24 care assistant services used. 238.25 (e) The recipient or responsible party may revoke the 238.26 authorization for flexible use of hours by notifying the 238.27 provider and the county public health nurse in writing. 238.28 (f) If the requirements in paragraphs (a) to (e) have not 238.29 substantially been met, the commissioner shall deny, revoke, or 238.30 suspend the authorization to use authorized hours flexibly. The 238.31 recipient or responsible party may appeal the commissioner's 238.32 action according to section 256.045. The denial, revocation, or 238.33 suspension to use the flexible hours option shall not affect the 238.34 recipient's authorized level of personal care assistant services 238.35 as determined under subdivision 5. 238.36 Sec. 50. Minnesota Statutes 1998, section 256B.0627, is 239.1 amended by adding a subdivision to read: 239.2 Subd. 10. [FISCAL AGENT OPTION AVAILABLE FOR PERSONAL CARE 239.3 ASSISTANT SERVICES.] (a) "Fiscal agent option" is an option that 239.4 allows the recipient to: 239.5 (1) use a fiscal agent instead of a personal care provider 239.6 organization; 239.7 (2) supervise the personal care assistant; and 239.8 (3) use a consulting professional. The commissioner may 239.9 allow a recipient of personal care assistant services to use a 239.10 fiscal agent to assist the recipient in paying and accounting 239.11 for medically necessary covered personal care assistant services 239.12 authorized in subdivision 4 and within the payment parameters of 239.13 subdivision 5. Unless otherwise provided in this subdivision, 239.14 all other statutory and regulatory provisions relating to 239.15 personal care services apply to a recipient using the fiscal 239.16 agent option. 239.17 (b) The recipient or responsible party shall: 239.18 (1) hire, and terminate the personal care assistant and 239.19 consulting professional, with the fiscal agent; 239.20 (2) recruit the personal care assistant and consulting 239.21 professional and orient and train the personal care assistant in 239.22 areas that do not require professional delegation as determined 239.23 by the county public health nurse; 239.24 (3) supervise and evaluate the personal care assistant in 239.25 areas that do not require professional delegation as determined 239.26 in the assessment; 239.27 (4) cooperate with a consulting professional and implement 239.28 recommendations pertaining to the health and safety of the 239.29 recipient; 239.30 (5) hire a qualified professional to train and supervise 239.31 the performance of delegated tasks done by the personal care 239.32 assistant; 239.33 (6) monitor services and verify in writing the hours worked 239.34 by the personal care assistant and the consulting professional; 239.35 (7) develop and revise a care plan with assistance from a 239.36 consulting professional; 240.1 (8) verify and document the credentials of the consulting 240.2 professional; and 240.3 (9) enter into a written agreement, as specified in 240.4 paragraph (f). 240.5 (c) The duties of the fiscal agent shall be to: 240.6 (1) bill the medical assistance program for personal care 240.7 assistant and consulting professional services; 240.8 (2) request and secure background checks on personal care 240.9 assistants and consulting professionals according to section 240.10 245A.04; 240.11 (3) pay the personal care assistant and consulting 240.12 professional based on actual hours of services provided; 240.13 (4) withhold and pay all applicable federal and state 240.14 taxes; 240.15 (5) verify and document hours worked by the personal care 240.16 assistant and consulting professional; 240.17 (6) make the arrangements and pay unemployment insurance, 240.18 taxes, workers' compensation, liability insurance, and other 240.19 benefits, if any; 240.20 (7) enroll in the medical assistance program as a fiscal 240.21 agent; and 240.22 (8) enter into a written agreement as specified in 240.23 paragraph (f) before services are provided. 240.24 (d) The fiscal agent: 240.25 (1) may not be related to the recipient, consulting 240.26 professional, or the personal care assistant; 240.27 (2) must ensure arm's length transactions with the 240.28 recipient and personal care assistant; and 240.29 (3) shall be considered a joint employer of the personal 240.30 care assistant and consulting professional to the extent 240.31 specified in this section. 240.32 The fiscal agent or owners of the entity that provides 240.33 fiscal agent services under this subdivision must pass a 240.34 criminal background check as required in section 256B.0627, 240.35 subdivision 1, paragraph (e). 240.36 (e) The consulting professional providing assistance to the 241.1 recipient shall meet the qualifications specified in section 241.2 256B.0625, subdivision 19c. The professional shall assist the 241.3 recipient in developing and revising a plan to meet the 241.4 recipient's assessed needs, and supervise the performance of 241.5 delegated tasks, as determined by the public health nurse. In 241.6 performing this function, the professional must visit the 241.7 recipient in the recipient's home at least once annually. The 241.8 professional must report to the local county public health nurse 241.9 concerns relating to the health and safety of the recipient, and 241.10 any suspected abuse, neglect, or financial exploitation of the 241.11 recipient to the appropriate authorities. 241.12 (f) The fiscal agent, recipient or responsible party, 241.13 personal care assistant, and consulting professional shall enter 241.14 into a written agreement before services are started. The 241.15 agreement shall include: 241.16 (1) the duties of the recipient, professional, personal 241.17 care assistant, and fiscal agent based on paragraphs (a) to (e); 241.18 (2) the salary and benefits for the personal care assistant 241.19 and those providing professional consultation; 241.20 (3) the administrative fee of the fiscal agent and services 241.21 paid for with that fee, including background check fees; 241.22 (4) procedures to respond to billing or payment complaints; 241.23 and 241.24 (5) procedures for hiring and terminating the personal care 241.25 assistant and those providing professional consultation. 241.26 (g) The rates paid for personal care services, professional 241.27 assistance, and fiscal agency services under this subdivision 241.28 shall be the same rates paid for personal care services and 241.29 qualified professional services under subdivision 2 241.30 respectively. Except for the administrative fee of the fiscal 241.31 agent specified in paragraph (f), the remainder of the rates 241.32 paid to the fiscal agent must be used to pay for the salary and 241.33 benefits for the personal care assistant or those providing 241.34 professional consultation. 241.35 (h) As part of the assessment defined in subdivision 1, the 241.36 following conditions must be met to use or continue use of a 242.1 fiscal agent: 242.2 (1) the recipient must be able to direct the recipient's 242.3 own care, or the responsible party for the recipient must be 242.4 readily available to direct the care of the personal care 242.5 assistant; 242.6 (2) the recipient or responsible party must be 242.7 knowledgeable of the health care needs of the recipient and be 242.8 able to effectively communicate those needs; 242.9 (3) a face-to-face assessment must be conducted by the 242.10 local county public health nurse at least annually, or when 242.11 there is a significant change in the recipient's condition or 242.12 change in the need for personal care assistant services. The 242.13 county public health nurse shall determine the services that 242.14 require professional delegation, if any, and the amount and 242.15 frequency of related supervision; 242.16 (4) the recipient cannot select the shared services option 242.17 as specified in subdivision 8; and 242.18 (5) parties must be in compliance with the written 242.19 agreement specified in paragraph (f). 242.20 (i) The commissioner shall deny, revoke, or suspend the 242.21 authorization to use the fiscal agent option if: 242.22 (1) it has been determined by the consulting professional 242.23 or local county public health nurse that the use of this option 242.24 jeopardizes the recipient's health and safety; 242.25 (2) the parties have failed to comply with the written 242.26 agreement specified in paragraph (f); or 242.27 (3) the use of the option has led to abusive or fraudulent 242.28 billing for personal care assistant services. 242.29 The recipient or responsible party may appeal the 242.30 commissioner's action according to section 256.045. The denial, 242.31 revocation, or suspension to use the fiscal agent option shall 242.32 not affect the recipient's authorized level of personal care 242.33 assistant services as determined in subdivision 5. The 242.34 effective date of this subdivision is the date of federal 242.35 approval. 242.36 Sec. 51. Minnesota Statutes 1998, section 256B.0627, is 243.1 amended by adding a subdivision to read: 243.2 Subd. 11. [SHARED PRIVATE DUTY NURSING CARE OPTION.] (a) 243.3 Medical assistance payments for shared private duty nursing 243.4 services by a private duty nurse shall be limited according to 243.5 this subdivision. For the purposes of this section, "private 243.6 duty nursing agency" means an agency licensed under chapter 144A 243.7 to provide private duty nursing services. 243.8 (b) Recipients of private duty nursing services may share 243.9 nursing staff and the commissioner shall provide a rate 243.10 methodology for shared private duty nursing. For two persons 243.11 sharing nursing care, the rate paid to a provider shall not 243.12 exceed 1.5 times the nonwaivered private duty nursing rates paid 243.13 for serving a single individual who is not ventilator-dependent, 243.14 by a registered nurse or licensed practical nurse. These rates 243.15 apply only to situations in which both recipients are present 243.16 and receive shared private duty nursing care on the date for 243.17 which the service is billed. No more than two persons may 243.18 receive shared private duty nursing services from a private duty 243.19 nurse in a single setting. 243.20 (c) Shared private duty nursing care is the provision of 243.21 nursing services by a private duty nurse to two recipients at 243.22 the same time and in the same setting. For the purposes of this 243.23 subdivision, "setting" means: 243.24 (1) the home or foster care home of one of the individual 243.25 recipients; or 243.26 (2) a child care program licensed under chapter 245A or 243.27 operated by a local school district or private school; or 243.28 (3) an adult day care service licensed under chapter 245A. 243.29 This subdivision does not apply when a private duty nurse 243.30 is caring for multiple recipients in more than one setting. 243.31 (d) The recipient or the recipient's legal representative, 243.32 and the recipient's physician, in conjunction with the home 243.33 health care agency, shall determine: 243.34 (1) whether shared private duty nursing care is an 243.35 appropriate option based on the individual needs and preferences 243.36 of the recipient; and 244.1 (2) the amount of shared private duty nursing services 244.2 authorized as part of the overall authorization of nursing 244.3 services. 244.4 (e) The recipient or the recipient's legal representative, 244.5 in conjunction with the private duty nursing agency, shall 244.6 approve the setting, grouping, and arrangement of shared private 244.7 duty nursing care based on the individual needs and preferences 244.8 of the recipients. Decisions on the selection of recipients to 244.9 share services must be based on the ages of the recipients, 244.10 compatibility, and coordination of their care needs. 244.11 (f) The following items must be considered by the recipient 244.12 or the recipient's legal representative and the private duty 244.13 nursing agency, and documented in the recipient's health service 244.14 record: 244.15 (1) the additional training needed by the private duty 244.16 nurse to provide care to several recipients in the same setting 244.17 and to ensure that the needs of the recipients are met 244.18 appropriately and safely; 244.19 (2) the setting in which the shared private duty nursing 244.20 care will be provided; 244.21 (3) the ongoing monitoring and evaluation of the 244.22 effectiveness and appropriateness of the service and process 244.23 used to make changes in service or setting; 244.24 (4) a contingency plan which accounts for absence of the 244.25 recipient in a shared private duty nursing setting due to 244.26 illness or other circumstances; 244.27 (5) staffing backup contingencies in the event of employee 244.28 illness or absence; and 244.29 (6) arrangements for additional assistance to respond to 244.30 urgent or emergency care needs of the recipients. 244.31 (g) The provider must offer the recipient or responsible 244.32 party the option of shared or one-on-one private duty nursing 244.33 services. The recipient or responsible party can withdraw from 244.34 participating in a shared service arrangement at any time. 244.35 (h) The private duty nursing agency must document the 244.36 following in the health service record for each individual 245.1 recipient sharing private duty nursing care: 245.2 (1) permission by the recipient or the recipient's legal 245.3 representative for the maximum number of shared nursing care 245.4 hours per week chosen by the recipient; 245.5 (2) permission by the recipient or the recipient's legal 245.6 representative for shared private duty nursing services provided 245.7 outside the recipient's residence; 245.8 (3) permission by the recipient or the recipient's legal 245.9 representative for others to receive shared private duty nursing 245.10 services in the recipient's residence; 245.11 (4) revocation by the recipient or the recipient's legal 245.12 representative of the shared private duty nursing care 245.13 authorization, or the shared care to be provided to others in 245.14 the recipient's residence, or the shared private duty nursing 245.15 services to be provided outside the recipient's residence; and 245.16 (5) daily documentation of the shared private duty nursing 245.17 services provided by each identified private duty nurse, 245.18 including: 245.19 (i) the names of each recipient receiving shared private 245.20 duty nursing services together; 245.21 (ii) the setting for the shared services, including the 245.22 starting and ending times that the recipient received shared 245.23 private duty nursing care; and 245.24 (iii) notes by the private duty nurse regarding changes in 245.25 the recipient's condition, problems that may arise from the 245.26 sharing of private duty nursing services, and scheduling and 245.27 care issues. 245.28 (i) Unless otherwise provided in this subdivision, all 245.29 other statutory and regulatory provisions relating to private 245.30 duty nursing services apply to shared private duty nursing 245.31 services. 245.32 Nothing in this subdivision shall be construed to reduce 245.33 the total number of private duty nursing hours authorized for an 245.34 individual recipient under subdivision 5. 245.35 Sec. 52. Minnesota Statutes 1998, section 256B.0635, 245.36 subdivision 3, is amended to read: 246.1 Subd. 3. [MEDICAL ASSISTANCE FOR MFIP-S PARTICIPANTS WHO 246.2 OPT TO DISCONTINUE MONTHLY CASH ASSISTANCE.]Upon federal246.3approval,Medical assistance is available to persons who 246.4received MFIP-S in at least three of the six months preceding246.5the month in which the person optedopt to discontinue receiving 246.6 MFIP-S cash assistance under section 256J.31, subdivision 12. A 246.7 person who is eligible for medical assistance under this section 246.8 may receive medical assistance without reapplication as long as 246.9 the person meets MFIP-S eligibility requirements, unless the246.10assistance unit does not include a dependent child. Medical 246.11 assistance may be paid pursuant to subdivisions 1 and 2 for 246.12 persons who are no longer eligible for MFIP-S due to increased 246.13 employment or child support. A person may be eligible for 246.14 MinnesotaCare due to increased employment or child support, and 246.15 as such must be informed of the option to transition onto 246.16 MinnesotaCare. 246.17 Sec. 53. [256B.0914] [CONFLICTS OF INTEREST RELATED TO 246.18 MEDICAID EXPENDITURES.] 246.19 Subdivision 1. [DEFINITIONS.] (a) "Contract" means a 246.20 written, fully executed agreement for the purchase of goods and 246.21 services involving a substantial expenditure of Medicaid 246.22 funding. A contract under a renewal period shall be considered 246.23 a separate contract. 246.24 (b) "Contractor bid or proposal information" means cost or 246.25 pricing data, indirect costs, and proprietary information marked 246.26 as such by the bidder in accordance with applicable law. 246.27 (c) "Particular expenditure" means a substantial 246.28 expenditure as defined below, for a specified term, involving 246.29 specific parties. The renewal of an existing contract for the 246.30 substantial expenditure of Medicaid funds is considered a 246.31 separate, particular expenditure from the original contract. 246.32 (d) "Source selection information" means any of the 246.33 following information prepared for use by the state, county, or 246.34 independent contractor for the purpose of evaluating a bid or 246.35 proposal to enter into a Medicaid procurement contract, if that 246.36 information has not been previously made available to the public 247.1 or disclosed publicly: 247.2 (1) bid prices submitted in response to a solicitation for 247.3 sealed bids, or lists of the bid prices before bid opening; 247.4 (2) proposed costs or prices submitted in response to a 247.5 solicitation, or lists of those proposed costs or prices; 247.6 (3) source selection plans; 247.7 (4) technical evaluations plans; 247.8 (5) technical evaluations of proposals; 247.9 (6) cost or price evaluation of proposals; 247.10 (7) competitive range determinations that identify 247.11 proposals that have a reasonable chance of being selected for 247.12 award of a contract; 247.13 (8) rankings of bids, proposals, or competitors; 247.14 (9) the reports and evaluations of source selection panels, 247.15 boards, or advisory councils; and 247.16 (10) other information marked as "source selection 247.17 information" based on a case-by-case determination by the head 247.18 of the agency, contractor, designees, or the contracting officer 247.19 that disclosure of the information would jeopardize the 247.20 integrity or successful completion of the Medicaid procurement 247.21 to which the information relates. 247.22 (e) "Substantial expenditure" and "substantial amounts" 247.23 mean a purchase of goods or services in excess of $10,000,000 in 247.24 Medicaid funding under this chapter or chapter 256L. 247.25 Subd. 2. [APPLICABILITY.] (a) Unless provided otherwise, 247.26 this section applies to: 247.27 (1) any state or local officer, employee, or independent 247.28 contractor who is responsible for the substantial expenditures 247.29 of medical assistance or MinnesotaCare funding under this 247.30 chapter or chapter 256L for which federal Medicaid matching 247.31 funds are available; 247.32 (2) any individual who formerly was such an officer, 247.33 employee, or independent contractor; and 247.34 (3) any partner of such a state or local officer, employee, 247.35 or independent contractor. 247.36 (b) This section is intended to meet the requirements of 248.1 state participation in the Medicaid program at United States 248.2 Code, title 42, sections 1396a(a)(4) and 1396u-2(d)(3), which 248.3 require that states have in place restrictions against conflicts 248.4 of interest in the Medicaid procurement process, that are at 248.5 least as stringent as those in effect under United States Code, 248.6 title 41, section 423, and title 18, sections 207 and 208, as 248.7 they apply to federal employees. 248.8 Subd. 3. [DISCLOSURE OF PROCUREMENT INFORMATION.] A person 248.9 described in subdivision 2 may not knowingly disclose contractor 248.10 bid or proposal information, or source selection information 248.11 before the award by the state, county, or independent contractor 248.12 of a Medicaid procurement contract to which the information 248.13 relates unless the disclosure is otherwise authorized by law. 248.14 No person, other than as provided by law, shall knowingly obtain 248.15 contractor bid or proposal information or source selection 248.16 information before the award of a Medicaid procurement contract 248.17 to which the information relates. 248.18 Subd. 4. [OFFERS OF EMPLOYMENT.] When a person described 248.19 in subdivision 2, paragraph (a), is participating personally and 248.20 substantially in a Medicaid procurement for a contract contacts 248.21 or is contacted by a person who is a bidder or offeror in the 248.22 same procurement regarding possible employment outside of the 248.23 entity by which the person is currently employed, the person 248.24 must: 248.25 (1) report the contact in writing to the person's 248.26 supervisor and employer's ethics officer; and 248.27 (2) either: 248.28 (i) reject the possibility of employment with the bidder or 248.29 offeror; or 248.30 (ii) be disqualified from further participation in the 248.31 procurement until the bidder or offeror is no longer involved in 248.32 that procurement, or all discussions with the bidder or offeror 248.33 regarding possible employment have terminated without an 248.34 arrangement for employment. A bidder or offeror may not engage 248.35 in employment discussions with an official who is subject to 248.36 this subdivision, until the bidder or offeror is no longer 249.1 involved in that procurement. 249.2 Subd. 5. [ACCEPTANCE OF COMPENSATION BY A FORMER 249.3 OFFICIAL.] (a) A former official of the state or county, or a 249.4 former independent contractor, described in subdivision 2 may 249.5 not accept compensation from a Medicaid contractor of a 249.6 substantial expenditure as an employee, officer, director, or 249.7 consultant of the contractor within one year after the former 249.8 official or independent contractor: 249.9 (1) served as the procuring contracting officer, the source 249.10 selection authority, a member of the source selection evaluation 249.11 board, or the chief of a financial or technical evaluation team 249.12 in a procurement in which the contractor was selected for award; 249.13 (2) served as the program manager, deputy program manager, 249.14 or administrative contracting officer for a contract awarded to 249.15 the contractor; or 249.16 (3) personally made decisions for the state, county, or 249.17 independent contractor to: 249.18 (i) award a contract, subcontract, modification of a 249.19 contract or subcontract, or a task order or delivery order to 249.20 the contractor; 249.21 (ii) establish overhead or other rates applicable to a 249.22 contract or contracts with the contractor; 249.23 (iii) approve issuance of a contract payment or payments to 249.24 the contractor; or 249.25 (iv) pay or settle a claim with the contractor. 249.26 (b) Paragraph (a) does not prohibit a former official of 249.27 the state, county, or independent contractor from accepting 249.28 compensation from any division or affiliate of a contractor not 249.29 involved in the same or similar products or services as the 249.30 division or affiliate of the contractor that is responsible for 249.31 the contract referred to in paragraph (a), clause (1), (2), or 249.32 (3). 249.33 (c) A contractor shall not provide compensation to a former 249.34 official knowing that the former official is accepting that 249.35 compensation in violation of this subdivision. 249.36 Subd. 6. [PERMANENT RESTRICTIONS ON REPRESENTATION AND 250.1 COMMUNICATION.] (a) A person described in subdivision 2, after 250.2 termination of his or her service with state, county, or 250.3 independent contractor, is permanently restricted from knowingly 250.4 making, with the intent to influence, any communication to or 250.5 appearance before an officer or employee of a department, 250.6 agency, or court of the United States, the state of Minnesota 250.7 and its counties in connection with a particular expenditure: 250.8 (1) in which the United States, the state of Minnesota, or 250.9 a Minnesota county is a party or has a direct and substantial 250.10 interest; 250.11 (2) in which the person participated personally and 250.12 substantially as an officer, employee, or independent 250.13 contractor; and 250.14 (3) which involved a specific party or parties at the time 250.15 of participation. 250.16 (b) For purposes of this subdivision and subdivisions 7 and 250.17 9, "participated" means an action taken through decision, 250.18 approval, disapproval, recommendation, the rendering of advice, 250.19 investigation, or other such action. 250.20 Subd. 7. [TWO-YEAR RESTRICTIONS ON REPRESENTATION AND 250.21 COMMUNICATION.] No person described in subdivision 2, within two 250.22 years after termination of service with the state, county, or 250.23 independent contractor, shall knowingly make, with the intent to 250.24 influence, any communication to or appearance before any officer 250.25 or employee of any government department, agency, or court in 250.26 connection with a particular expenditure: 250.27 (1) in which the United States, the state of Minnesota, or 250.28 a Minnesota county is a party or has a direct and substantial 250.29 interest; 250.30 (2) which the person knows or reasonably should know was 250.31 actually pending under the official's responsibility as an 250.32 officer, employee, or independent contractor within one year 250.33 before the termination of the official's service with the state, 250.34 county, or independent contractor; and 250.35 (3) which involved a specific party or parties at the time 250.36 the expenditure was pending. 251.1 Subd. 8. [EXCEPTIONS TO PERMANENT AND TWO-YEAR 251.2 RESTRICTIONS ON REPRESENTATION AND COMMUNICATION.] Subdivisions 251.3 6 and 7 do not apply to: 251.4 (1) communications or representations made in carrying out 251.5 official duties on behalf of the United States, the state of 251.6 Minnesota or local government, or as an elected official of the 251.7 state or local government; 251.8 (2) communications made solely for the purpose of 251.9 furnishing scientific or technological information; or 251.10 (3) giving testimony under oath. A person subject to 251.11 subdivisions 6 and 7 may serve as an expert witness in that 251.12 matter, without restriction, for the state, county, or 251.13 independent contractor. Under court order, a person subject to 251.14 subdivisions 6 and 7 may serve as an expert witness for others. 251.15 Otherwise, the person may not serve as an expert witness in that 251.16 matter. 251.17 Subd. 9. [WAIVER.] The commissioner of human services, or 251.18 the governor in the case of the commissioner, may grant a waiver 251.19 of a restriction in subdivisions 6 and 7 if he or she determines 251.20 that a waiver is in the public interest and that the services of 251.21 the officer or employee are critically needed for the benefit of 251.22 the state or county government. 251.23 Subd. 10. [ACTS AFFECTING A PERSONAL FINANCIAL 251.24 INTEREST.] A person described in subdivision 2, paragraph (a), 251.25 clause (1), who participates in a particular expenditure in 251.26 which the person has knowledge or has a financial interest, is 251.27 subject to the penalties in subdivision 12. For purposes of 251.28 this subdivision, "financial interest" also includes the 251.29 financial interest of a spouse, minor child, general partner, 251.30 organization in which the officer or employee is serving as an 251.31 officer, director, trustee, general partner, or employee, or any 251.32 person or organization with whom the individual is negotiating 251.33 or has any arrangement concerning prospective employment. 251.34 Subd. 11. [EXCEPTIONS TO PROHIBITIONS REGARDING FINANCIAL 251.35 INTEREST.] Subdivision 10 does not apply if: 251.36 (1) the person first advises the person's supervisor and 252.1 the employer's ethics officer regarding the nature and 252.2 circumstances of the particular expenditure and makes full 252.3 disclosure of the financial interest and receives in advance a 252.4 written determination made by the commissioner of human 252.5 services, or the governor in the case of the commissioner, that 252.6 the interest is not so substantial as to likely affect the 252.7 integrity of the services which the government may expect from 252.8 the officer, employee, or independent contractor; 252.9 (2) the financial interest is listed as an exemption at 252.10 Code of Federal Regulations, title 5, sections 2640.201 to 252.11 2640.203, as too remote or inconsequential to affect the 252.12 integrity of the services of the office, employee, or 252.13 independent contractor to which the requirement applies. 252.14 Subd. 12. [CRIMINAL PENALTIES.] (a) A person who violates 252.15 subdivisions 3 to 5 for the purpose of either exchanging the 252.16 information covered by this section for anything of value, or 252.17 for obtaining or giving anyone a competitive advantage in the 252.18 award of a Medicaid contract, may be sentenced to imprisonment 252.19 for not more than five years or payment of a fine of not more 252.20 than $50,000 for each violation, or the amount of compensation 252.21 which the person received or offered for the prohibited conduct, 252.22 whichever is greater, or both. 252.23 (b) A person who violates a provision of subdivisions 6 to 252.24 11 may be sentenced to imprisonment for not more than one year 252.25 or payment of a fine of not more than $50,000 for each violation 252.26 or the amount of compensation which the person received or 252.27 offered for the prohibited conduct, whichever amount is greater, 252.28 or both. A person who willfully engages in conduct in violation 252.29 of subdivisions 6 to 11 may be sentenced to imprisonment for not 252.30 more than five years or to payment of fine of not more than 252.31 $50,000 for each violation or the amount of compensation which 252.32 the person received or offered for the prohibited conduct, 252.33 whichever amount is greater, or both. 252.34 (c) Nothing in this section precludes prosecution under 252.35 other laws such as section 609.43. 252.36 Subd. 13. [CIVIL PENALTIES AND INJUNCTIVE RELIEF.] (a) The 253.1 Minnesota attorney general may bring a civil action in Ramsey 253.2 county district court against a person who violates subdivisions 253.3 3 to 5. Upon proof of such conduct by a preponderance of 253.4 evidence, the person is subject to a civil penalty. An 253.5 individual who violates subdivisions 3 to 5 is subject to a 253.6 civil penalty of not more than $50,000 for each violation plus 253.7 twice the amount of compensation which the individual received 253.8 or offered for the prohibited conduct. An organization that 253.9 violates subdivisions 3 to 5 is subject to a civil penalty of 253.10 not more than $500,000 for each violation plus twice the amount 253.11 of compensation which the organization received or offered for 253.12 the prohibited conduct. 253.13 (b) If the Minnesota attorney general has reason to believe 253.14 that a person is engaging in conduct in violation of subdivision 253.15 6, 7, or 9, the attorney general may petition the Ramsey county 253.16 district court for an order prohibiting that person from 253.17 engaging in such conduct. The court may issue an order 253.18 prohibiting that person from engaging in such conduct if the 253.19 court finds that the conduct constitutes such a violation. The 253.20 filing of a petition under this subdivision does not preclude 253.21 any other remedy which is available by law. 253.22 Subd. 14. [ADMINISTRATIVE ACTIONS.] (a) If a state agency, 253.23 local agency, or independent contractor receives information 253.24 that a contractor or a person has violated subdivisions 3 to 5, 253.25 the state agency, local agency, or independent contractor may: 253.26 (1) cancel the procurement if a contract has not already 253.27 been awarded; 253.28 (2) rescind the contract; or 253.29 (3) initiate suspension or debarment proceedings according 253.30 to applicable state or federal law. 253.31 (b) If the contract is rescinded, the state agency, local 253.32 agency, or independent contractor is entitled to recover, in 253.33 addition to any penalty prescribed by law, the amount expended 253.34 under the contract. 253.35 (c) This section does not: 253.36 (1) restrict the disclosure of information to or from any 254.1 person or class of persons authorized to receive that 254.2 information; 254.3 (2) restrict a contractor from disclosing the contractor's 254.4 bid or proposal information or the recipient from receiving that 254.5 information; 254.6 (3) restrict the disclosure or receipt of information 254.7 relating to a Medicaid procurement after it has been canceled by 254.8 the state agency, county agency, or independent contractor 254.9 before the contract award unless the agency or independent 254.10 contractor plans to resume the procurement; or 254.11 (4) limit the applicability of any requirements, sanctions, 254.12 contract penalties, and remedies established under any other law 254.13 or regulation. 254.14 (d) No person may file a protest against the award or 254.15 proposed award of a Medicaid contract alleging a violation of 254.16 this section unless that person reported the information the 254.17 person believes constitutes evidence of the offense to the 254.18 applicable state agency, local agency, or independent contractor 254.19 responsible for the procurement. The report must be made no 254.20 later than 14 days after the person first discovered the 254.21 possible violation. 254.22 Sec. 54. Minnesota Statutes 1998, section 256B.0916, is 254.23 amended to read: 254.24 256B.0916 [EXPANSION OF HOME AND COMMUNITY-BASED SERVICES; 254.25 MANAGEMENT AND ALLOCATION RESPONSIBILITIES.] 254.26(a) The commissioner shall expand availability of home and254.27community-based services for persons with mental retardation and254.28related conditions to the extent allowed by federal law and254.29regulation and shall assist counties in transferring persons254.30from semi-independent living services to home and254.31community-based services. The commissioner may transfer funds254.32from the state semi-independent living services account254.33available under section 252.275, subdivision 8, and state254.34community social services aids available under section 256E.15254.35to the medical assistance account to pay for the nonfederal254.36share of nonresidential and residential home and community-based255.1services authorized under section 256B.092 for persons255.2transferring from semi-independent living services.255.3(b) Upon federal approval, county boards are not255.4responsible for funding semi-independent living services as a255.5social service for those persons who have transferred to the255.6home and community-based waiver program as a result of the255.7expansion under this subdivision. The county responsibility for255.8those persons transferred shall be assumed under section255.9256B.092. Notwithstanding the provisions of section 252.275,255.10the commissioner shall continue to allocate funds under that255.11section for semi-independent living services and county boards255.12shall continue to fund services under sections 256E.06 and255.13256E.14 for those persons who cannot access home and255.14community-based services under section 256B.092.255.15(c) Eighty percent of the state funds made available to the255.16commissioner under section 252.275 as a result of persons255.17transferring from the semi-independent living services program255.18to the home and community-based services program shall be used255.19to fund additional persons in the semi-independent living255.20services program.255.21(d) Beginning August 1, 1998, the commissioner shall issue255.22an annual report on the home and community-based waiver for255.23persons with mental retardation or related conditions, that255.24includes a list of the counties in which less than 95 percent of255.25the allocation provided, excluding the county waivered services255.26reserve, has been committed for two or more quarters during the255.27previous state fiscal year. For each listed county, the report255.28shall include the amount of funds allocated but not used, the255.29number and ages of individuals screened and waiting for255.30services, the services needed, a description of the technical255.31assistance provided by the commissioner to assist the counties255.32in jointly planning with other counties in order to serve more255.33persons, and additional actions which will be taken to serve255.34those screened and waiting for services.255.35 Subdivision 1. [REDUCTION OF WAITING LIST.] (a) The 255.36 legislature recognizes that as of January 1, 1999, 3,300 persons 256.1 with mental retardation or related conditions have been screened 256.2 and determined eligible for the home and community-based waiver 256.3 services program for persons with mental retardation or related 256.4 conditions. Many wait for several years before receiving 256.5 service. 256.6 (b) The waiting list for this program shall be reduced or 256.7 eliminated by June 30, 2003. In order to reduce the number of 256.8 eligible persons waiting for identified services provided 256.9 through the home and community-based waiver for persons with 256.10 mental retardation or related conditions, funding shall be 256.11 increased to add 250 additional eligible persons each year 256.12 beyond the November 1998 medical assistance forecast for the 256.13 period July 1, 1999, to June 30, 2003. 256.14 Subd. 2. [DISTRIBUTION OF FUNDS; PARTNERSHIPS.] (a) 256.15 Beginning with fiscal year 2000, the commissioner shall 256.16 distribute all funding available for home and community-based 256.17 waiver services for persons with mental retardation or related 256.18 conditions to individual counties or to groups of counties that 256.19 form partnerships to jointly plan, administer, and authorize 256.20 funding for eligible individuals. The commissioner shall 256.21 encourage counties to form partnerships that have a sufficient 256.22 number of recipients and funding to adequately manage the risk 256.23 and maximize use of available resources. 256.24 (b) Counties must submit a request for funds and a plan for 256.25 administering the program as required by the commissioner. The 256.26 plan must identify the number of clients to be served, their 256.27 ages, and their priority listing based on: 256.28 (1) requirements in Minnesota Rules, part 9525.1880; 256.29 (2) unstable living situations due to the age or incapacity 256.30 of the primary caregiver; and 256.31 (3) the need for services to avoid out-of-home placement of 256.32 children. 256.33 The plan must also identify changes made to improve services to 256.34 eligible persons and to improve program management. 256.35 (c) In allocating resources to counties, priority must be 256.36 given to groups of counties that form partnerships to jointly 257.1 plan, administer, and authorize funding for eligible individuals 257.2 and to counties determined by the commissioner to have 257.3 sufficient waiver capacity to maximize resource use. 257.4 (d) Within 30 days after receiving the county request for 257.5 funds and plans, the commissioner shall provide a written 257.6 response to the plan that includes the level of resources 257.7 available to serve additional persons. 257.8 (e) Counties are eligible to receive medical assistance 257.9 administrative reimbursement for administrative costs under 257.10 criteria established by the commissioner. 257.11 Subd. 3. [FAILURE TO DEVELOP PARTNERSHIPS OR SUBMIT A 257.12 PLAN.] (a) By October 1 of each year the commissioner shall 257.13 notify the county board if any county determined by the 257.14 commissioner to have insufficient capacity to maximize use of 257.15 available resources fails to develop a partnership with other 257.16 counties or fails to submit a plan as required in subdivision 257.17 2. The commissioner shall provide needed technical assistance 257.18 to a county or group of counties that fails to form a 257.19 partnership or submit a plan. If a county has not joined a 257.20 county partnership or submitted a plan within 30 days following 257.21 the notice by the commissioner of its failure, the commissioner 257.22 shall require and assist that county to develop a plan or 257.23 contract with another county or group of counties to plan and 257.24 administer the waiver services program in that county. 257.25 (b) Counties may request technical assistance, management 257.26 information, and administrative support from the commissioner at 257.27 any time. The commissioner shall respond to county requests 257.28 within 30 days. Priority shall be given to activities that 257.29 support the administrative needs of newly formed county 257.30 partnerships. 257.31 Subd. 4. [ALLOWED RESERVE.] Counties or groups of counties 257.32 participating in partnerships that have submitted a plan under 257.33 this section may develop an allowed reserve amount to meet 257.34 crises and other unmet needs of current home and community-based 257.35 waiver recipients. The amount of the allowed reserve shall be a 257.36 county specific amount based upon documented past experience and 258.1 projected need for the coming year described in an allowed 258.2 reserve plan submitted for approval to the commissioner with the 258.3 allocation request for the fiscal year. 258.4 Subd. 5. [PRIORITIES FOR REASSIGNMENT OF RESOURCES AND 258.5 APPROVAL OF INCREASED CAPACITY.] In order to maximize the number 258.6 of persons served with waiver funds, the commissioner shall 258.7 monitor county utilization of allocated resources and, as 258.8 appropriate, reassign resources not utilized and approve 258.9 increased capacity within available county allocations. 258.10 Priority consideration for reassignment of resources and 258.11 approval of increased capacity shall be given to counties with 258.12 sufficient capacity and counties that form partnerships. In 258.13 addition to the priorities listed in Minnesota Rules, part 258.14 9525.1880, the commissioner shall also give priority 258.15 consideration to persons whose living situations are unstable 258.16 due to the age or incapacity of the primary caregiver and to 258.17 children to avoid out-of-home placement. 258.18 Subd. 6. [WAIVER REQUEST.] (a) The commissioner shall 258.19 submit to the federal Health Care Financing Administration by 258.20 September 1, 1999, a request for a waiver to include an option 258.21 that would allow waiver service recipients to directly receive 258.22 95 percent of the funds that would be allocated to individuals 258.23 based on written county criteria and procedures approved by the 258.24 commissioner for the purchase of services to meet their 258.25 long-term care needs. The waiver request must include a 258.26 provision requiring recipients who receive funds directly to 258.27 provide to the commissioner annually, a description of the type 258.28 of services used, the amount paid for the services purchased, 258.29 and the amount of unspent funds. 258.30 (b) The commissioner, in cooperation with county 258.31 representatives, waiver service providers, recipients, 258.32 recipients' families, legal guardians, and advocacy groups, 258.33 shall develop criteria for: 258.34 (1) eligibility to receive funding directly; 258.35 (2) determination of the amount of funds made available to 258.36 each eligible person based on need; and 259.1 (3) the accountability required of persons directly 259.2 receiving funds. 259.3 (c) If this waiver is approved and implemented, any unspent 259.4 money from the waiver services allocation, including the five 259.5 percent not directly allocated to recipients and any unspent 259.6 portion of the money that is directly allocated, shall be used 259.7 to meet the needs of other eligible persons waiting for services 259.8 funded through the waiver. 259.9 (d) The commissioner, in consultation with county social 259.10 services agencies, waiver services providers, recipients, 259.11 recipients' families, legal guardians, and advocacy groups shall 259.12 evaluate the effectiveness of this option within two years of 259.13 its implementation. 259.14 Subd. 7. [ANNUAL REPORT BY COMMISSIONER.] Beginning 259.15 October 1, 1999, and each October 1 thereafter, the commissioner 259.16 shall issue an annual report on county and state use of 259.17 available resources for the home and community-based waiver for 259.18 persons with mental retardation or related conditions. For each 259.19 county or county partnership, the report shall include: 259.20 (1) the amount of funds allocated but not used; 259.21 (2) the county specific allowed reserve amount approved and 259.22 used; 259.23 (3) the number, ages and living situations of individuals 259.24 screened and waiting for services; 259.25 (4) the urgency of need for services to begin within one, 259.26 two, or more than two years for each individual; 259.27 (5) the services needed; 259.28 (6) the number of additional persons served by approval of 259.29 increased capacity within existing allocations; 259.30 (7) results of action by the commissioner to streamline 259.31 administrative requirements and improve county resource 259.32 management; and 259.33 (8) additional action that would decrease the number of 259.34 those eligible and waiting for waivered services. 259.35 The commissioner shall specify intended outcomes for the program 259.36 and the degree to which these specified outcomes are attained. 260.1(e)Subd. 8. [FINANCIAL INFORMATION BY COUNTY.] The 260.2 commissioner shall make available to interested parties, upon 260.3 request, financial information by county including the amount of 260.4 resources allocated for the home and community-based waiver for 260.5 persons with mental retardation and related conditions, the 260.6 resources committed, the number of persons screened and waiting 260.7 for services, the type of services requested by those waiting, 260.8 and the amount of allocated resources not committed. 260.9 Subd. 9. [LEGAL REPRESENTATIVE PARTICIPATION 260.10 EXCEPTION.] The commissioner, in cooperation with 260.11 representatives of counties, service providers, service 260.12 recipients, family members, legal representatives and advocates, 260.13 shall develop criteria to allow legal representatives to be 260.14 reimbursed for providing specific support services to meet the 260.15 person's needs when a plan which assures health and safety has 260.16 been agreed upon and carried out by the legal representative, 260.17 the person, and the county. Legal representatives providing 260.18 support under consumer-directed community support services 260.19 pursuant to section 256B.092, subdivision 4, or the consumer 260.20 support grant program pursuant to section 256B.092, subdivision 260.21 7, shall not be considered to have a direct or indirect service 260.22 provider interest under section 256B.092, subdivision 7, if a 260.23 health and safety plan which meets the criteria established has 260.24 been agreed upon and implemented. By October 1, 1999, the 260.25 commissioner shall submit, for federal approval, amendments to 260.26 allow legal representatives to provide supports and receive 260.27 reimbursement under the consumer-directed community support 260.28 services section of the home and community-based waiver plan. 260.29 Sec. 55. Minnesota Statutes 1998, section 256B.0917, 260.30 subdivision 8, is amended to read: 260.31 Subd. 8. [LIVING-AT-HOME/BLOCK NURSE PROGRAM GRANT.] (a) 260.32 The organization awarded the contract under subdivision 7, shall 260.33 develop and administer a grant program to establish or expand up 260.34 to2737 community-based organizations that will implement 260.35 living-at-home/block nurse programs that are designed to enable 260.36 senior citizens to live as independently as possible in their 261.1 homes and in their communities. At least one-half of the 261.2 programs must be in counties outside the seven-county 261.3 metropolitan area. Nonprofit organizations and units of local 261.4 government are eligible to apply for grants to establish the 261.5 community organizations that will implement living-at-home/block 261.6 nurse programs. In awarding grants, the organization awarded 261.7 the contract under subdivision 7 shall give preference to 261.8 nonprofit organizations and units of local government from 261.9 communities that: 261.10 (1) have high nursing home occupancy rates; 261.11 (2) have a shortage of health care professionals; 261.12 (3) are located in counties adjacent to, or are located in, 261.13 counties with existing living-at-home/block nurse programs; and 261.14 (4) meet other criteria established by LAH/BN, Inc., in 261.15 consultation with the commissioner. 261.16 (b) Grant applicants must also meet the following criteria: 261.17 (1) the local community demonstrates a readiness to 261.18 establish a community model of care, including the formation of 261.19 a board of directors, advisory committee, or similar group, of 261.20 which at least two-thirds is comprised of community citizens 261.21 interested in community-based care for older persons; 261.22 (2) the program has sponsorship by a credible, 261.23 representative organization within the community; 261.24 (3) the program has defined specific geographic boundaries 261.25 and defined its organization, staffing and coordination/delivery 261.26 of services; 261.27 (4) the program demonstrates a team approach to 261.28 coordination and care, ensuring that the older adult 261.29 participants, their families, the formal and informal providers 261.30 are all part of the effort to plan and provide services; and 261.31 (5) the program provides assurances that all community 261.32 resources and funding will be coordinated and that other funding 261.33 sources will be maximized, including a person's own resources. 261.34 (c) Grant applicants must provide a minimum of five percent 261.35 of total estimated development costs from local community 261.36 funding. Grants shall be awarded for four-year periods, and the 262.1 base amount shall not exceed $80,000 per applicant for the grant 262.2 period. The organization under contract may increase the grant 262.3 amount for applicants from communities that have socioeconomic 262.4 characteristics that indicate a higher level of need for 262.5 assistance. Subject to the availability of funding, grants and 262.6 grant renewals awarded or entered into on or after July 1, 1997, 262.7 shall be renewed by LAH/BN, Inc. every four years, unless 262.8 LAH/BN, Inc. determines that the grant recipient has not 262.9 satisfactorily operated the living-at-home/block nurse program 262.10 in compliance with the requirements of paragraphs (b) and (d). 262.11 Grants provided to living-at-home/block nurse programs under 262.12 this paragraph may be used for both program development and the 262.13 delivery of services. 262.14 (d) Each living-at-home/block nurse program shall be 262.15 designed by representatives of the communities being served to 262.16 ensure that the program addresses the specific needs of the 262.17 community residents. The programs must be designed to: 262.18 (1) incorporate the basic community, organizational, and 262.19 service delivery principles of the living-at-home/block nurse 262.20 program model; 262.21 (2) provide senior citizens with registered nurse directed 262.22 assessment, provision and coordination of health and personal 262.23 care services on a sliding fee basis as an alternative to 262.24 expensive nursing home care; 262.25 (3) provide information, support services, homemaking 262.26 services, counseling, and training for the client and family 262.27 caregivers; 262.28 (4) encourage the development and use of respite care, 262.29 caregiver support, and in-home support programs, such as adult 262.30 foster care and in-home adult day care; 262.31 (5) encourage neighborhood residents and local 262.32 organizations to collaborate in meeting the needs of senior 262.33 citizens in their communities; 262.34 (6) recruit, train, and direct the use of volunteers to 262.35 provide informal services and other appropriate support to 262.36 senior citizens and their caregivers; and 263.1 (7) provide coordination and management of formal and 263.2 informal services to senior citizens and their families using 263.3 less expensive alternatives. 263.4 Sec. 56. Minnesota Statutes 1998, section 256B.0951, 263.5 subdivision 1, is amended to read: 263.6 Subdivision 1. [MEMBERSHIP.] The region 10 quality 263.7 assurance commission is established. The commission consists of 263.8 at least1314 but not more than2021 members as follows: at 263.9 least three but not more than five members representing advocacy 263.10 organizations; at least three but not more than five members 263.11 representing consumers, families, and their legal 263.12 representatives; at least three but not more than five members 263.13 representing service providers;andat least three but not more 263.14 than five members representing counties; and the commissioner of 263.15 human services or the commissioner's designee. Initial 263.16 membership of the commission shall be recruited and approved by 263.17 the region 10 stakeholders group. Prior to approving the 263.18 commission's membership, the stakeholders group shall provide to 263.19 the commissioner a list of the membership in the stakeholders 263.20 group, as of February 1, 1997, a brief summary of meetings held 263.21 by the group since July 1, 1996, and copies of any materials 263.22 prepared by the group for public distribution. The first 263.23 commission shall establish membership guidelines for the 263.24 transition and recruitment of membership for the commission's 263.25 ongoing existence. Members of the commission who do not receive 263.26 a salary or wages from an employer for time spent on commission 263.27 duties may receive a per diem payment when performing commission 263.28 duties and functions. All members may be reimbursed for 263.29 expenses related to commission activities. Notwithstanding the 263.30 provisions of section 15.059, subdivision 5, the commission 263.31 expires on June 30, 2001. 263.32 Sec. 57. Minnesota Statutes 1998, section 256B.0951, 263.33 subdivision 3, is amended to read: 263.34 Subd. 3. [COMMISSION DUTIES.] (a) By October 1, 1997, the 263.35 commission, in cooperation with the commissioners of human 263.36 services and health, shall do the following: (1) approve an 264.1 alternative quality assurance licensing system based on the 264.2 evaluation of outcomes; (2) approve measurable outcomes in the 264.3 areas of health and safety, consumer evaluation, education and 264.4 training, providers, and systems that shall be evaluated during 264.5 the alternative licensing process; and (3) establish variable 264.6 licensure periods not to exceed three years based on outcomes 264.7 achieved. For purposes of this subdivision, "outcome" means the 264.8 behavior, action, or status of a person that can be observed or 264.9 measured and can be reliably and validly determined. 264.10 (b) By January 15, 1998, the commission shall approve, in 264.11 cooperation with the commissioner of human services, a training 264.12 program for members of the quality assurance teams established 264.13 under section 256B.0952, subdivision 4. 264.14 (c) The commission and the commissioner shall establish an 264.15 ongoing review process for the alternative quality assurance 264.16 licensing system. The review shall take into account the 264.17 comprehensive nature of the alternative system, which is 264.18 designed to evaluate the broad spectrum of licensed and 264.19 unlicensed entities that provide services to clients, as 264.20 compared to the current licensing system. 264.21 (d) The commission shall contract with an independent 264.22 entity to conduct a financial review of the alternative quality 264.23 assurance pilot project. The review shall take into account the 264.24 comprehensive nature of the alternative system, which is 264.25 designed to evaluate the broad spectrum of licensed and 264.26 unlicensed entities that provide services to clients, as 264.27 compared to the current licensing system. The review shall 264.28 include an evaluation of possible budgetary savings within the 264.29 department of human services as a result of implementation of 264.30 the alternative quality assurance pilot project. If a federal 264.31 waiver is approved under subdivision 7, the financial review 264.32 shall also evaluate possible savings within the department of 264.33 health. This review must be completed by December 15, 2000. 264.34 (e) The commission shall submit a report to the legislature 264.35 by January 15, 2001, on the results of the review process for 264.36 the alternative quality assurance pilot project, a summary of 265.1 the results of the independent financial review, and a 265.2 recommendation on whether the pilot project should be extended 265.3 beyond June 30, 2001. 265.4 Sec. 58. Minnesota Statutes 1998, section 256B.0955, is 265.5 amended to read: 265.6 256B.0955 [DUTIES OF THE COMMISSIONER OF HUMAN SERVICES.] 265.7 (a) Effective July 1, 1998, the commissioner of human 265.8 services shall delegate authority to perform licensing functions 265.9 and activities, in accordance with section 245A.16, to counties 265.10 participating in the alternative licensing system. The 265.11 commissioner shall not license or reimburse a facility, program, 265.12 or service for persons with developmental disabilities in a 265.13 county that participates in the alternative licensing system if 265.14 the commissioner has received from the appropriate county 265.15 notification that the facility, program, or service has been 265.16 reviewed by a quality assurance team and has failed to qualify 265.17 for licensure. 265.18 (b) The commissioner may conduct random licensing 265.19 inspections based on outcomes adopted under section 256B.0951 at 265.20 facilities, programs, and services governed by the alternative 265.21 licensing system. The role of such random inspections shall be 265.22 to verify that the alternative licensing system protects the 265.23 safety and well-being of consumers and maintains the 265.24 availability of high-quality services for persons with 265.25 developmental disabilities. 265.26 (c) The commissioner shall provide technical assistance and 265.27 support or training to the alternative licensing system pilot 265.28 project. 265.29(d) The commissioner and the commission shall establish an265.30ongoing evaluation process for the alternative licensing system.265.31(e) The commissioner shall contract with an independent265.32entity to conduct a financial review of the alternative265.33licensing system, including an evaluation of possible budgetary265.34savings within the department of human services and the265.35department of health as a result of implementation of the265.36alternative quality assurance licensing system. This review266.1must be completed by December 15, 2000.266.2(f) The commissioner and the commission shall submit a266.3report to the legislature by January 15, 2001, on the results of266.4the evaluation process of the alternative licensing system, a266.5summary of the results of the independent financial review, and266.6a recommendation on whether the pilot project should be extended266.7beyond June 30, 2001.266.8 Sec. 59. Minnesota Statutes 1998, section 256B.48, 266.9 subdivision 1, is amended to read: 266.10 Subdivision 1. [PROHIBITED PRACTICES.] A nursing facility 266.11 is not eligible to receive medical assistance payments unless it 266.12 refrains from all of the following: 266.13 (a) Charging private paying residents rates for similar 266.14 services which exceed those which are approved by the state 266.15 agency for medical assistance recipients as determined by the 266.16 prospective desk audit rate, except under the following 266.17 circumstances: the nursing facility may (1) charge private 266.18 paying residents a higher rate for a private room, and (2) 266.19 charge for special services which are not included in the daily 266.20 rate if medical assistance residents are charged separately at 266.21 the same rate for the same services in addition to the daily 266.22 rate paid by the commissioner. Services covered by the payment 266.23 rate must be the same regardless of payment source. Special 266.24 services, if offered, must be available to all residents in all 266.25 areas of the nursing facility and charged separately at the same 266.26 rate. Residents are free to select or decline special 266.27 services. Special services must not include services which must 266.28 be provided by the nursing facility in order to comply with 266.29 licensure or certification standards and that if not provided 266.30 would result in a deficiency or violation by the nursing 266.31 facility. Services beyond those required to comply with 266.32 licensure or certification standards must not be charged 266.33 separately as a special service if they were included in the 266.34 payment rate for the previous reporting year. A nursing 266.35 facility that charges a private paying resident a rate in 266.36 violation of this clause is subject to an action by the state of 267.1 Minnesota or any of its subdivisions or agencies for civil 267.2 damages. A private paying resident or the resident's legal 267.3 representative has a cause of action for civil damages against a 267.4 nursing facility that charges the resident rates in violation of 267.5 this clause. The damages awarded shall include three times the 267.6 payments that result from the violation, together with costs and 267.7 disbursements, including reasonable attorneys' fees or their 267.8 equivalent. A private paying resident or the resident's legal 267.9 representative, the state, subdivision or agency, or a nursing 267.10 facility may request a hearing to determine the allowed rate or 267.11 rates at issue in the cause of action. Within 15 calendar days 267.12 after receiving a request for such a hearing, the commissioner 267.13 shall request assignment of an administrative law judge under 267.14 sections 14.48 to 14.56 to conduct the hearing as soon as 267.15 possible or according to agreement by the parties. The 267.16 administrative law judge shall issue a report within 15 calendar 267.17 days following the close of the hearing. The prohibition set 267.18 forth in this clause shall not apply to facilities licensed as 267.19 boarding care facilities which are not certified as skilled or 267.20 intermediate care facilities level I or II for reimbursement 267.21 through medical assistance. 267.22 (b) Requiring an applicant for admission to the facility, 267.23 or the guardian or conservator of the applicant, as a condition 267.24 of admission, to pay any fee or deposit in excess of $100, loan 267.25 any money to the nursing facility, or promise to leave all or 267.26 part of the applicant's estate to the facility. 267.27 (c) Requiring any resident of the nursing facility to 267.28 utilize a vendor of health care services chosen by the nursing 267.29 facility. A nursing facility may require a resident to use 267.30 pharmacies that utilize unit dose packing systems or other 267.31 medication administration systems approved by the Minnesota 267.32 board of pharmacy, and may require a resident to use pharmacies 267.33 that are able to meet the nursing facility's standards for safe 267.34 and timely administration of medications such as systems with 267.35 specific number of doses, prompt delivery of medications, or 267.36 access to medications on a 24-hour basis. Nursing facilities 268.1 shall not restrict a resident's choice of pharmacy because the 268.2 pharmacy utilizes a specific system of unit dose drug packing, 268.3 providing the system is consistent with the other systems used 268.4 by the facility. 268.5 (d) Providing differential treatment on the basis of status 268.6 with regard to public assistance. 268.7 (e) Discriminating in admissions, services offered, or room 268.8 assignment on the basis of status with regard to public 268.9 assistance or refusal to purchase special services. Admissions 268.10 discrimination shall include, but is not limited to: 268.11 (1) basing admissions decisions upon assurance by the 268.12 applicant to the nursing facility, or the applicant's guardian 268.13 or conservator, that the applicant is neither eligible for nor 268.14 will seek public assistance for payment of nursing facility care 268.15 costs; and 268.16 (2) engaging in preferential selection from waiting lists 268.17 based on an applicant's ability to pay privately or an 268.18 applicant's refusal to pay for a special service. 268.19 The collection and use by a nursing facility of financial 268.20 information of any applicant pursuant to a preadmission 268.21 screening program established by law shall not raise an 268.22 inference that the nursing facility is utilizing that 268.23 information for any purpose prohibited by this paragraph. 268.24 (f) Requiring any vendor of medical care as defined by 268.25 section 256B.02, subdivision 7, who is reimbursed by medical 268.26 assistance under a separate fee schedule, to pay any amount 268.27 based on utilization or service levels or any portion of the 268.28 vendor's fee to the nursing facility except as payment for 268.29 renting or leasing space or equipment or purchasing support 268.30 services from the nursing facility as limited by section 268.31 256B.433. All agreements must be disclosed to the commissioner 268.32 upon request of the commissioner. Nursing facilities and 268.33 vendors of ancillary services that are found to be in violation 268.34 of this provision shall each be subject to an action by the 268.35 state of Minnesota or any of its subdivisions or agencies for 268.36 treble civil damages on the portion of the fee in excess of that 269.1 allowed by this provision and section 256B.433. Damages awarded 269.2 must include three times the excess payments together with costs 269.3 and disbursements including reasonable attorney's fees or their 269.4 equivalent. 269.5 (g) Refusing, for more than 24 hours, to accept a resident 269.6 returning to the same bed or a bed certified for the same level 269.7 of care, in accordance with a physician's order authorizing 269.8 transfer, after receiving inpatient hospital services. 269.9 The prohibitions set forth in clause (b) shall not apply to 269.10 a retirement facility with more than 325 beds including at least 269.11 150 licensed nursing facility beds and which: 269.12 (1) is owned and operated by an organization tax-exempt 269.13 under section 290.05, subdivision 1, clause (i); and 269.14 (2) accounts for all of the applicant's assets which are 269.15 required to be assigned to the facility so that only expenses 269.16 for the cost of care of the applicant may be charged against the 269.17 account; and 269.18 (3) agrees in writing at the time of admission to the 269.19 facility to permit the applicant, or the applicant's guardian, 269.20 or conservator, to examine the records relating to the 269.21 applicant's account upon request, and to receive an audited 269.22 statement of the expenditures charged against the applicant's 269.23 individual account upon request; and 269.24 (4) agrees in writing at the time of admission to the 269.25 facility to permit the applicant to withdraw from the facility 269.26 at any time and to receive, upon withdrawal, the balance of the 269.27 applicant's individual account. 269.28 For a period not to exceed 180 days, the commissioner may 269.29 continue to make medical assistance payments to a nursing 269.30 facility or boarding care home which is in violation of this 269.31 section if extreme hardship to the residents would result. In 269.32 these cases the commissioner shall issue an order requiring the 269.33 nursing facility to correct the violation. The nursing facility 269.34 shall have 20 days from its receipt of the order to correct the 269.35 violation. If the violation is not corrected within the 20-day 269.36 period the commissioner may reduce the payment rate to the 270.1 nursing facility by up to 20 percent. The amount of the payment 270.2 rate reduction shall be related to the severity of the violation 270.3 and shall remain in effect until the violation is corrected. 270.4 The nursing facility or boarding care home may appeal the 270.5 commissioner's action pursuant to the provisions of chapter 14 270.6 pertaining to contested cases. An appeal shall be considered 270.7 timely if written notice of appeal is received by the 270.8 commissioner within 20 days of notice of the commissioner's 270.9 proposed action. 270.10 In the event that the commissioner determines that a 270.11 nursing facility is not eligible for reimbursement for a 270.12 resident who is eligible for medical assistance, the 270.13 commissioner may authorize the nursing facility to receive 270.14 reimbursement on a temporary basis until the resident can be 270.15 relocated to a participating nursing facility. 270.16 Certified beds in facilities which do not allow medical 270.17 assistance intake on July 1, 1984, or after shall be deemed to 270.18 be decertified for purposes of section 144A.071 only. 270.19 Sec. 60. Minnesota Statutes 1998, section 256B.501, 270.20 subdivision 8a, is amended to read: 270.21 Subd. 8a. [PAYMENT FOR PERSONS WITH SPECIAL NEEDS FOR 270.22 CRISIS INTERVENTION SERVICES.]State-operated,Community-based 270.23 crisis servicesprovided in accordance with section 252.50,270.24subdivision 7, toauthorized by the commissioner or the 270.25 commissioner's designee for a resident of an intermediate care 270.26 facility for persons with mental retardation (ICF/MR) reimbursed 270.27 under this section shall be paid by medical assistance in 270.28 accordance with the paragraphs (a) to(h)(g). 270.29 (a) "Crisis services" means the specialized services listed 270.30 in clauses (1) to (3) provided to prevent the recipient from 270.31 requiring placement in a more restrictive institutional setting 270.32 such as an inpatient hospital or regional treatment center and 270.33 to maintain the recipient in the present community setting. 270.34 (1) The crisis services provider shall assess the 270.35 recipient's behavior and environment to identify factors 270.36 contributing to the crisis. 271.1 (2) The crisis services provider shall develop a 271.2 recipient-specific intervention plan in coordination with the 271.3 service planning team and provide recommendations for revisions 271.4 to the individual service plan if necessary to prevent or 271.5 minimize the likelihood of future crisis situations. The 271.6 intervention plan shall include a transition plan to aid the 271.7 recipient in returning to the community-based ICF/MR if the 271.8 recipient is receiving residential crisis services. 271.9 (3) The crisis services provider shall consult with and 271.10 provide training and ongoing technical assistance to the 271.11 recipient's service providers to aid in the implementation of 271.12 the intervention plan and revisions to the individual service 271.13 plan. 271.14 (b) "Residential crisis services" means crisis services 271.15 that are provided to a recipient admitted tothe crisis services271.16foster care settingan alternative, state licensed site approved 271.17 by the commissioner, because the ICF/MR receiving reimbursement 271.18 under this section is not able, as determined by the 271.19 commissioner, to provide the intervention and protection of the 271.20 recipient and others living with the recipient that is necessary 271.21 to prevent the recipient from requiring placement in a more 271.22 restrictive institutional setting. 271.23 (c) Residential crisis services providers mustbe licensed271.24bymaintain a license from the commissionerunder section271.25245A.03 to provide foster care, must exclusively providefor the 271.26 residence when providing crisis services for short-term crisis 271.27 intervention, and must not be located in a private residence. 271.28 (d) Payment ratesare determined annually for each crisis271.29services provider based on cost of care for each provider as271.30defined in section 246.50. Interim payment rates are calculated271.31on a per diem basis by dividing the projected cost of providing271.32care by the projected number of contact days for the fiscal271.33year, as estimated by the commissioner. Final payment rates are271.34calculated by dividing the actual cost of providing care by the271.35actual number of contact days in the applicable fiscal yearwill 271.36 be established consistent with county negotiated crisis 272.1 intervention services. 272.2 (e)Payment shall be made for each contact day. "Contact272.3day" means any day in which the crisis services provider has272.4face-to-face contact with the recipient or any of the272.5recipient's medical assistance service providers for the purpose272.6of providing crisis services as defined in paragraph (c).272.7(f)Payment for residential crisis services is limited to 272.8 21 days, unless an additional period is authorized by the 272.9 commissioner or part of an approved regional plan.The272.10additional period may not exceed 21 days.272.11(g)(f) Payment for crisis services shall be made only for 272.12 services provided while the ICF/MR receiving reimbursement under 272.13 this section: 272.14 (1) has a shared services agreement with the crisis 272.15 services provider in effectin accordance withunder section 272.16 246.57; and 272.17 (2)has reassigned payment for the provision of the crisis272.18services under this subdivision to the commissioner in272.19accordance with Code of Federal Regulations, title 42, section272.20447.10(e); and272.21(3)has executed a cooperative agreement with the crisis 272.22 services provider to implement the intervention plan and 272.23 revisions to the individual service plan as necessary to prevent 272.24 or minimize the likelihood of future crisis situations, to 272.25 maintain the recipient in the present community setting, and to 272.26 prevent the recipient from requiring a more restrictive 272.27 institutional setting. 272.28(h)(g) Payment to the ICF/MR receiving reimbursement under 272.29 this section shall be made for up to 18 therapeutic leave days 272.30 during which the recipient is receiving residential crisis 272.31 services, if the ICF/MR is otherwise eligible to receive payment 272.32 for a therapeutic leave day under Minnesota Rules, part 272.33 9505.0415. Payment under this paragraph shall be terminated if 272.34 the commissioner determines that the ICF/MR is not meeting the 272.35 terms of thecooperativeshared service agreement under 272.36 paragraph(g)(f) or that the recipient will not return to the 273.1 ICF/MR. 273.2 Sec. 61. Minnesota Statutes 1998, section 256B.69, 273.3 subdivision 3a, is amended to read: 273.4 Subd. 3a. [COUNTY AUTHORITY.] (a) The commissioner, when 273.5 implementing the general assistance medical care, or medical 273.6 assistance prepayment program within a county, must include the 273.7 county board in the process of development, approval, and 273.8 issuance of the request for proposals to provide services to 273.9 eligible individuals within the proposed county. County boards 273.10 must be given reasonable opportunity to make recommendations 273.11 regarding the development, issuance, review of responses, and 273.12 changes needed in the request for proposals. The commissioner 273.13 must provide county boards the opportunity to review each 273.14 proposal based on the identification of community needs under 273.15 chapters 145A and 256E and county advocacy activities. If a 273.16 county board finds that a proposal does not address certain 273.17 community needs, the county board and commissioner shall 273.18 continue efforts for improving the proposal and network prior to 273.19 the approval of the contract. The county board shall make 273.20 recommendations regarding the approval of local networks and 273.21 their operations to ensure adequate availability and access to 273.22 covered services. The provider or health plan must respond 273.23 directly to county advocates and the state prepaid medical 273.24 assistance ombudsperson regarding service delivery and must be 273.25 accountable to the state regarding contracts with medical 273.26 assistance and general assistance medical care funds. The 273.27 county board may recommend a maximum number of participating 273.28 health plans after considering the size of the enrolling 273.29 population; ensuring adequate access and capacity; considering 273.30 the client and county administrative complexity; and considering 273.31 the need to promote the viability of locally developed health 273.32 plans. The county board or a single entity representing a group 273.33 of county boards and the commissioner shall mutually select 273.34 health plans for participation at the time of initial 273.35 implementation of the prepaid medical assistance program in that 273.36 county or group of counties and at the time of contract renewal. 274.1 The commissioner shall also seek input for contract requirements 274.2 from the county or single entity representing a group of county 274.3 boards at each contract renewal and incorporate those 274.4 recommendations into the contract negotiation process. The 274.5 commissioner, in conjunction with the county board, shall 274.6 actively seek to develop a mutually agreeable timetable prior to 274.7 the development of the request for proposal, but counties must 274.8 agree to initial enrollment beginning on or before January 1, 274.9 1999, in either the prepaid medical assistance and general 274.10 assistance medical care programs or county-based purchasing 274.11 under section 256B.692. At least 90 days before enrollment in 274.12 the medical assistance and general assistance medical care 274.13 prepaid programs begins in a county in which the prepaid 274.14 programs have not been established, the commissioner shall 274.15 provide a report to the chairs of senate and house committees 274.16 having jurisdiction over state health care programs which 274.17 verifies that the commissioner complied with the requirements 274.18 for county involvement that are specified in this subdivision. 274.19 (b) The commissioner shall seek a federal waiver to allow a 274.20 fee-for-service plan option to MinnesotaCare enrollees. The 274.21 commissioner shall develop an increase of the premium fees 274.22 required under section 256L.06 up to 20 percent of the premium 274.23 fees for the enrollees who elect the fee-for-service option. 274.24 Prior to implementation, the commissioner shall submit this fee 274.25 schedule to the chair and ranking minority member of the senate 274.26 health care committee, the senate health care and family 274.27 services funding division, the house of representatives health 274.28 and human services committee, and the house of representatives 274.29 health and human services finance division. 274.30 (c) At the option of the county board, the board may 274.31 develop contract requirements related to the achievement of 274.32 local public health goals to meet the health needs of medical 274.33 assistance and general assistance medical care enrollees. These 274.34 requirements must be reasonably related to the performance of 274.35 health plan functions and within the scope of the medical 274.36 assistance and general assistance medical care benefit sets. If 275.1 the county board and the commissioner mutually agree to such 275.2 requirements, the department shall include such requirements in 275.3 all health plan contracts governing the prepaid medical 275.4 assistance and general assistance medical care programs in that 275.5 county at initial implementation of the program in that county 275.6 and at the time of contract renewal. The county board may 275.7 participate in the enforcement of the contract provisions 275.8 related to local public health goals. 275.9 (d) For counties in which prepaid medical assistance and 275.10 general assistance medical care programs have not been 275.11 established, the commissioner shall not implement those programs 275.12 if a county board submits acceptable and timely preliminary and 275.13 final proposals under section 256B.692, until county-based 275.14 purchasing is no longer operational in that county. For 275.15 counties in which prepaid medical assistance and general 275.16 assistance medical care programs are in existence on or after 275.17 September 1, 1997, the commissioner must terminate contracts 275.18 with health plans according to section 256B.692, subdivision 5, 275.19 if the county board submits and the commissioner accepts 275.20 preliminary and final proposals according to that subdivision. 275.21 The commissioner is not required to terminate contracts that 275.22 begin on or after September 1, 1997, according to section 275.23 256B.692 until two years have elapsed from the date of initial 275.24 enrollment. 275.25 (e) In the event that a county board or a single entity 275.26 representing a group of county boards and the commissioner 275.27 cannot reach agreement regarding: (i) the selection of 275.28 participating health plans in that county; (ii) contract 275.29 requirements; or (iii) implementation and enforcement of county 275.30 requirements including provisions regarding local public health 275.31 goals, the commissioner shall resolve all disputes after taking 275.32 into account the recommendations of a three-person mediation 275.33 panel. The panel shall be composed of one designee of the 275.34 president of the association of Minnesota counties, one designee 275.35 of the commissioner of human services, and one designee of the 275.36 commissioner of health. 276.1 (f) If a county which elects to implement county-based 276.2 purchasing ceases to implement county-based purchasing, it is 276.3 prohibited from assuming the responsibility of county-based 276.4 purchasing for a period of five years from the date it 276.5 discontinues purchasing. 276.6 (g) Notwithstanding the requirement in this subdivision 276.7 that a county must agree to initial enrollment on or before 276.8 January 1, 1999, the commissioner shall grant a delayof up to276.9nine monthsin the implementation of the county-based purchasing 276.10 authorized in section 256B.692 until federal waiver authority 276.11 and approval has been granted, if the county or group of 276.12 counties has submitted a preliminary proposal for county-based 276.13 purchasing by September 1, 1997, has not already implemented the 276.14 prepaid medical assistance program before January 1, 1998, and 276.15 has submitted a written request for the delay to the 276.16 commissioner by July 1, 1998. In order for the delay to be 276.17 continued, the county or group of counties must also submit to 276.18 the commissioner the following information by December 1, 1998. 276.19 The information must: 276.20 (1) identify the proposed date of implementation,not later276.21than October 1, 1999as determined under section 256B.692, 276.22 subdivision 5; 276.23 (2) include copies of the county board resolutions which 276.24 demonstrate the continued commitment to the implementation of 276.25 county-based purchasing by the proposed date. County board 276.26 authorization may remain contingent on the submission of a final 276.27 proposal which meets the requirements of section 256B.692, 276.28 subdivision 5, paragraph (b); 276.29 (3) demonstrate actions taken for the establishment of a 276.30 governance structure between the participating counties and 276.31 describe how the fiduciary responsibilities of county-based 276.32 purchasing will be allocated between the counties, if more than 276.33 one county is involved in the proposal; 276.34 (4) describe how the risk of a deficit will be managed in 276.35 the event expenditures are greater than total capitation 276.36 payments. This description must identify how any of the 277.1 following strategies will be used: 277.2 (i) risk contracts with licensed health plans; 277.3 (ii) risk arrangements with providers who are not licensed 277.4 health plans; 277.5 (iii) risk arrangements with other licensed insurance 277.6 entities; and 277.7 (iv) funding from other county resources; 277.8 (5) include, if county-based purchasing will not contract 277.9 with licensed health plans or provider networks, letters of 277.10 interest from local providers in at least the categories of 277.11 hospital, physician, mental health, and pharmacy which express 277.12 interest in contracting for services. These letters must 277.13 recognize any risk transfer identified in clause (4), item (ii); 277.14 and 277.15 (6) describe the options being considered to obtain the 277.16 administrative services required in section 256B.692, 277.17 subdivision 3, clauses (3) and (5). 277.18 (h) For counties which receive a delay under this 277.19 subdivision, the final proposals required under section 277.20 256B.692, subdivision 5, paragraph (b), must be submitted at 277.21 least six months prior to the requested implementation date. 277.22 Authority to implement county-based purchasing remains 277.23 contingent on approval of the final proposal as required under 277.24 section 256B.692. 277.25 (i) If the commissioner is unable to provide 277.26 county-specific, individual-level fee-for-service claims to 277.27 counties by June 4, 1998, the commissioner shall grant a delay 277.28 under paragraph (g) of up to 12 months in the implementation of 277.29 county-based purchasing, and shall require implementation not 277.30 later than January 1, 2000. In order to receive an extension of 277.31 the proposed date of implementation under this paragraph, a 277.32 county or group of counties must submit a written request for 277.33 the extension to the commissioner by August 1, 1998, must submit 277.34 the information required under paragraph (g) by December 1, 277.35 1998, and must submit a final proposal as provided under 277.36 paragraph (h). 278.1 (j) Notwithstanding other requirements of this subdivision, 278.2 the commissioner shall not require the implementation of the 278.3 county-based purchasing authorized in section 256B.692 until six 278.4 months after federal waiver approval has been obtained for 278.5 county-based purchasing, if the county or counties have 278.6 submitted the final plan as required in section 256B.692, 278.7 subdivision 5. The commissioner shall allow the county or 278.8 counties which submitted information under section 256B.692, 278.9 subdivision 5, to submit supplemental or additional information 278.10 which was not possible to submit by April 1, 1999. A county or 278.11 counties shall continue to submit the required information and 278.12 substantive detail necessary to obtain a prompt response and 278.13 waiver approval. If amendments to the final plan are necessary 278.14 due to the terms and conditions of the waiver approval, the 278.15 commissioner shall allow the county or group of counties 60 days 278.16 to make the necessary amendments to the final plan and shall not 278.17 require implementation of the county-based purchasing until six 278.18 months after the revised final plan has been submitted. 278.19 Sec. 62. Minnesota Statutes 1998, section 256B.69, is 278.20 amended by adding a subdivision to read: 278.21 Subd. 3b. [PROVISION OF DATA TO COUNTY BOARDS.] The 278.22 commissioner of human services, in consultation with 278.23 representatives of county boards of commissioners shall identify 278.24 program information and data necessary on an ongoing basis for 278.25 county boards to: (1) make recommendations to the commissioner 278.26 related to state purchasing under the prepaid medical assistance 278.27 program; and (2) effectively administer county-based 278.28 purchasing. This information and data must include, but is not 278.29 limited to, county-specific, individual-level fee-for-service 278.30 and prepaid health plan claims information. 278.31 Sec. 63. Minnesota Statutes 1998, section 256B.69, is 278.32 amended by adding a subdivision to read: 278.33 Subd. 4b. [INDIVIDUAL EDUCATION PLAN AND INDIVIDUALIZED 278.34 FAMILY SERVICE PLAN SERVICES.] The commissioner shall amend the 278.35 federal waiver allowing the state to separate out individual 278.36 education plan and individualized family service plan services 279.1 for children enrolled in the prepaid medical assistance program 279.2 and the MinnesotaCare program. Effective July 1, 1999, or upon 279.3 federal approval, medical assistance coverage of eligible 279.4 individual education plan and individualized family service plan 279.5 services shall not be included in the capitated services for 279.6 children enrolled in health plans through the prepaid medical 279.7 assistance program and the MinnesotaCare program. Upon federal 279.8 approval, local school districts shall bill the commissioner for 279.9 these services, and claims shall be paid on a fee-for-service 279.10 basis. 279.11 Sec. 64. Minnesota Statutes 1998, section 256B.69, 279.12 subdivision 5a, is amended to read: 279.13 Subd. 5a. [MANAGED CARE CONTRACTS.] Managed care contracts 279.14 under this section, sections 256.9363, and 256D.03, shall be 279.15 entered into or renewed on a calendar year basis beginning 279.16 January 1, 1996. Managed care contracts which were in effect on 279.17 June 30, 1995, and set to renew on July 1, 1995, shall be 279.18 renewed for the period July 1, 1995 through December 31, 1995 at 279.19 the same terms that were in effect on June 30, 1995. 279.20 A prepaid health plan providing covered health services for 279.21 eligible persons pursuant to chapters 256B, 256D, and 256L, is 279.22 responsible for complying with the terms of its contract with 279.23 the commissioner. Requirements applicable to managed care 279.24 programs under chapters 256B, 256D, and 256L, established after 279.25 the effective date of a contract with the commissioner take 279.26 effect when the contract is next issued or renewed, subject to 279.27 the terms and conditions negotiated by the prepaid health plan 279.28 and the commissioner. 279.29 Sec. 65. Minnesota Statutes 1998, section 256B.69, 279.30 subdivision 5b, is amended to read: 279.31 Subd. 5b. [PROSPECTIVE REIMBURSEMENT RATES.] (a) For 279.32 prepaid medical assistance and general assistance medical care 279.33 program contract rates set by the commissioner under subdivision 279.34 5 and effective on or after January 1, 1998, capitation rates 279.35 for nonmetropolitan counties shall on a weighted average be no 279.36 less than 88 percent of the capitation rates for metropolitan 280.1 counties, excluding Hennepin county. The commissioner shall 280.2 make a pro rata adjustment in capitation rates paid to counties 280.3 other than nonmetropolitan counties in order to make this 280.4 provision budget neutral. 280.5 (b) For prepaid medical assistance and general assistance 280.6 medical care program contract rates set by the commissioner 280.7 under subdivision 5 and effective on or after January 1, 2000, 280.8 capitation rates for nonmetropolitan counties shall, on a 280.9 weighted average, be no less than 92 percent of the capitation 280.10 rates for metropolitan counties, excluding Hennepin county. The 280.11 commissioner shall adjust the capitation rate paid to Hennepin 280.12 county in order to make this provision budget neutral. 280.13 Sec. 66. Minnesota Statutes 1998, section 256B.69, is 280.14 amended by adding a subdivision to read: 280.15 Subd. 5e. [MEDICAL EDUCATION AND RESEARCH PAYMENTS.] For 280.16 the calendar years 1999, 2000, and 2001, a hospital that 280.17 participates in funding the federal share of the medical 280.18 education and research trust fund payment under Laws 1998, 280.19 chapter 407, article 1, section 3, shall not be held liable for 280.20 any amounts attributable to this payment above the charge limit 280.21 of section 256.969, subdivision 3a. The commissioner of human 280.22 services shall assume liability for any corresponding federal 280.23 share of the payments above the charge limit. 280.24 Sec. 67. Minnesota Statutes 1998, section 256B.692, 280.25 subdivision 2, is amended to read: 280.26 Subd. 2. [DUTIES OF THE COMMISSIONER OF HEALTH.] (a) 280.27 Notwithstanding chapters 62D and 62N, a county that elects to 280.28 purchase medical assistance and general assistance medical care 280.29 in return for a fixed sum without regard to the frequency or 280.30 extent of services furnished to any particular enrollee is not 280.31 required to obtain a certificate of authority under chapter 62D 280.32 or 62N. The county board of commissioners is the governing body 280.33 of a county-based purchasing program. In a multicounty 280.34 arrangement, the governing body is a joint powers board 280.35 established under section 471.59. 280.36 (b) A county that elects to purchase medical assistance and 281.1 general assistance medical care services under this section must 281.2 satisfy the commissioner of health that the requirements for 281.3 assurance of consumer and provider protection and fiscal 281.4 solvency of chapter 62D, applicable to health maintenance 281.5 organizations, or chapter 62N, applicable to community 281.6 integrated service networks, will be met. 281.7 (c) A county must also assure the commissioner of health 281.8 that the requirements of sections 62J.041; 62J.48; 62J.71 to 281.9 62J.73; 62M.01 to 62M.16; all applicable provisions of chapter 281.10 62Q, including sections 62Q.07; 62Q.075; 62Q.105; 62Q.1055; 281.11 62Q.106; 62Q.11; 62Q.12; 62Q.135; 62Q.14; 62Q.145; 62Q.19; 281.12 62Q.23, paragraph (c); 62Q.30; 62Q.43; 62Q.47; 62Q.50; 62Q.52 to 281.13 62Q.56; 62Q.58; 62Q.64; and 72A.201 will be met. 281.14 (d) All enforcement and rulemaking powers available under 281.15 chapters 62D, 62J, 62M, 62N, and 62Q are hereby granted to the 281.16 commissioner of health with respect to counties that purchase 281.17 medical assistance and general assistance medical care services 281.18 under this section. 281.19 (e) The commissioner, in consultation with county 281.20 government, shall develop administrative and financial reporting 281.21 requirements for county-based purchasing programs relating to 281.22 sections 62D.041, 62D.042, 62D.045, 62D.08, 62N.28, 62N.29, and 281.23 62N.31, and other sections as necessary, that are specific to 281.24 county administrative, accounting, and reporting systems and 281.25 consistent with other statutory requirements of counties. 281.26 Sec. 68. Minnesota Statutes 1998, section 256B.75, is 281.27 amended to read: 281.28 256B.75 [HOSPITAL OUTPATIENT REIMBURSEMENT.] 281.29 (a) For outpatient hospital facility fee payments for 281.30 services rendered on or after October 1, 1992, the commissioner 281.31 of human services shall pay the lower of (1) submitted charge, 281.32 or (2) 32 percent above the rate in effect on June 30, 1992, 281.33 except for those services for which there is a federal maximum 281.34 allowable payment. Effective for services rendered on or after 281.35 January 1, 2000, payment rates for nonsurgical outpatient 281.36 hospital facility fees and emergency room facility fees shall be 282.1 increased by ten percent over the rates in effect on December 282.2 31, 1999, except for those services for which there is a federal 282.3 maximum allowable payment. Services for which there is a 282.4 federal maximum allowable payment shall be paid at the lower of 282.5 (1) submitted charge, or (2) the federal maximum allowable 282.6 payment. Total aggregate payment for outpatient hospital 282.7 facility fee services shall not exceed the Medicare upper 282.8 limit. If it is determined that a provision of this section 282.9 conflicts with existing or future requirements of the United 282.10 States government with respect to federal financial 282.11 participation in medical assistance, the federal requirements 282.12 prevail. The commissioner may, in the aggregate, prospectively 282.13 reduce payment rates to avoid reduced federal financial 282.14 participation resulting from rates that are in excess of the 282.15 Medicare upper limitations. 282.16 (b) Notwithstanding paragraph (a), payment for outpatient, 282.17 emergency, and ambulatory surgery hospital facility fee services 282.18 for critical access hospitals designated under section 144.1483, 282.19 clause (11), shall be paid on a cost-based payment system that 282.20 is based on the cost-finding methods and allowable costs of the 282.21 Medicare program. 282.22 (Effective Date: Section 68 (256B.75) is effective for 282.23 services rendered on or after July 1, 1999.) 282.24 Sec. 69. Minnesota Statutes 1998, section 256B.76, is 282.25 amended to read: 282.26 256B.76 [PHYSICIAN AND DENTAL REIMBURSEMENT.] 282.27 (a) The physician reimbursement increase provided in 282.28 section 256B.74, subdivision 2, shall not be implemented. 282.29 Effective for services rendered on or after October 1, 1992, the 282.30 commissioner shall make payments for physician services as 282.31 follows: 282.32 (1) payment for level one Health Care Finance 282.33 Administration's common procedural coding system (HCPCS) codes 282.34 titled "office and other outpatient services," "preventive 282.35 medicine new and established patient," "delivery, antepartum, 282.36 and postpartum care," "critical care," Caesarean delivery and 283.1 pharmacologic management provided to psychiatric patients, and 283.2 HCPCS level three codes for enhanced services for prenatal high 283.3 risk, shall be paid at the lower of (i) submitted charges, or 283.4 (ii) 25 percent above the rate in effect on June 30, 1992. If 283.5 the rate on any procedure code within these categories is 283.6 different than the rate that would have been paid under the 283.7 methodology in section 256B.74, subdivision 2, then the larger 283.8 rate shall be paid; 283.9 (2) payments for all other services shall be paid at the 283.10 lower of (i) submitted charges, or (ii) 15.4 percent above the 283.11 rate in effect on June 30, 1992;and283.12 (3) all physician rates shall be converted from the 50th 283.13 percentile of 1982 to the 50th percentile of 1989, less the 283.14 percent in aggregate necessary to equal the above increases 283.15 except that payment rates for home health agency services shall 283.16 be the rates in effect on September 30, 1992.; 283.17 (4) effective for services rendered on or after October 1, 283.18 1999, payment rates for physician and professional services 283.19 shall be increased by four percent over the rates in effect on 283.20 September 30, 1999, except for home health agency and family 283.21 planning agency services; 283.22 (5) the department shall present a proposal during the year 283.23 2000 legislative session detailing physician and professional 283.24 services payment methodology conversion to Resource Based 283.25 Relative Value Scale; and 283.26 (6) the increases in clause (4) shall be implemented 283.27 January 1, 2000, for managed care. 283.28 (b) The dental reimbursement increase provided in section 283.29 256B.74, subdivision 5, shall not be implemented. Effective for 283.30 services rendered on or after October 1, 1992, the commissioner 283.31 shall make payments for dental services as follows: 283.32 (1) dental services shall be paid at the lower of (i) 283.33 submitted charges, or (ii) 25 percent above the rate in effect 283.34 on June 30, 1992;and283.35 (2) dental rates shall be converted from the 50th 283.36 percentile of 1982 to the 50th percentile of 1989, less the 284.1 percent in aggregate necessary to equal the above increases.; 284.2 (3) effective for services rendered on or after October 1, 284.3 1999, payment rates for dental services shall be increased by 284.4 five percent over the rates in effect on September 30, 1999; 284.5 (4) the department shall increase payments by 20 percent 284.6 over the October 1, 1999, fee-for-service rates, for those 284.7 fee-for-service providers for whom public programs under MA, 284.8 GAMC, and MinnesotaCare account for 20 percent or more of their 284.9 practice; 284.10 (5) the commissioner shall award grants to community 284.11 clinics or other nonprofit community organizations, political 284.12 subdivisions, professional associations, or other organizations 284.13 that demonstrate the ability to provide dental services 284.14 effectively to public program recipients. Grants may be used to 284.15 fund the costs related to coordinating access for recipients, 284.16 developing and implementing patient care criteria, upgrading or 284.17 establishing new facilities, acquiring furnishings or equipment, 284.18 recruiting new providers, or other development costs that will 284.19 improve access to dental care in a region. In awarding grants, 284.20 the commissioner shall give priority to applicants that plan to 284.21 serve areas of the state in which the number of dental providers 284.22 is not currently sufficient to meet the needs of recipients of 284.23 public programs or uninsured individuals. The commissioner 284.24 shall monitor the grants and may terminate a grant if the 284.25 grantee does not increase dental access for public program 284.26 recipients. The commissioner shall consider grants for the 284.27 following: 284.28 (i) implementation of new programs or continued expansion 284.29 of current access programs that have demonstrated success in 284.30 providing dental services in underserved areas; 284.31 (ii) a pilot program utilizing dental hygienists and dental 284.32 assistants to provide education, training, and screening for 284.33 dental care needs including referrals to dentists for dental 284.34 care treatment; 284.35 (iii) a pilot program for utilizing hygienists outside of a 284.36 traditional dental office to provide dental hygiene services; 285.1 and 285.2 (iv) a program that organizes a network of volunteer 285.3 dentists, establishes a system to refer eligible individuals to 285.4 volunteer dentists, and through that network provides donated 285.5 dental care services to public program recipients or uninsured 285.6 individuals. 285.7 (6) beginning October 1, 1999, the payment for tooth 285.8 sealants and fluoride treatments shall be the lower of (i) 285.9 submitted charge, or (ii) 80 percent of median 1997 charges; and 285.10 (7) the increases listed in clauses (3), (4), and (6) shall 285.11 be implemented January 1, 2000, for managed care. 285.12 (c) An entity that operates both a Medicare certified 285.13 comprehensive outpatient rehabilitation facility and a facility 285.14 which was certified prior to January 1, 1993, that is licensed 285.15 under Minnesota Rules, parts 9570.2000 to 9570.3600, and for 285.16 whom at least 33 percent of the clients receiving rehabilitation 285.17 services in the most recent calendar year are medical assistance 285.18 recipients, shall be reimbursed by the commissioner for 285.19 rehabilitation services at rates that are 38 percent greater 285.20 than the maximum reimbursement rate allowed under paragraph (a), 285.21 clause (2), when those services are (1) provided within the 285.22 comprehensive outpatient rehabilitation facility and (2) 285.23 provided to residents of nursing facilities owned by the entity. 285.24 Sec. 70. Minnesota Statutes 1998, section 256B.77, 285.25 subdivision 7a, is amended to read: 285.26 Subd. 7a. [ELIGIBLE INDIVIDUALS.] (a) Persons are eligible 285.27 for the demonstration project as provided in this subdivision. 285.28 (b) "Eligible individuals" means those persons living in 285.29 the demonstration site who are eligible for medical assistance 285.30 and are disabled based on a disability determination under 285.31 section 256B.055, subdivisions 7 and 12, or who are eligible for 285.32 medical assistance and have been diagnosed as having: 285.33 (1) serious and persistent mental illness as defined in 285.34 section 245.462, subdivision 20; 285.35 (2) severe emotional disturbance as defined in section 285.36245.487245.4871, subdivision 6; or 286.1 (3) mental retardation, or being a mentally retarded person 286.2 as defined in section 252A.02, or a related condition as defined 286.3 in section 252.27, subdivision 1a. 286.4 Other individuals may be included at the option of the county 286.5 authority based on agreement with the commissioner. 286.6 (c)Eligible individuals residing on a federally recognized286.7Indian reservation may be excluded from participation in the286.8demonstration project at the discretion of the tribal government286.9based on agreement with the commissioner, in consultation with286.10the county authority.286.11(d)Eligible individuals include individuals in excluded 286.12 time status, as defined in chapter 256G. Enrollees in excluded 286.13 time at the time of enrollment shall remain in excluded time 286.14 status as long as they live in the demonstration site and shall 286.15 be eligible for 90 days after placement outside the 286.16 demonstration site if they move to excluded time status in a 286.17 county within Minnesota other than their county of financial 286.18 responsibility. 286.19(e)(d) A person who is a sexual psychopathic personality 286.20 as defined in section 253B.02, subdivision 18a, or a sexually 286.21 dangerous person as defined in section 253B.02, subdivision 18b, 286.22 is excluded from enrollment in the demonstration project. 286.23 Sec. 71. Minnesota Statutes 1998, section 256B.77, is 286.24 amended by adding a subdivision to read: 286.25 Subd. 7b. [AMERICAN INDIAN RECIPIENTS.] (a) Beginning on 286.26 or after July 1, 1999, for American Indian recipients of medical 286.27 assistance who are required to enroll with a county 286.28 administrative entity or service delivery organization under 286.29 subdivision 7, medical assistance shall cover health care 286.30 services provided at American Indian health services facilities 286.31 and facilities operated by a tribe or tribal organization under 286.32 funding authorized by United States Code, title 25, sections 286.33 450f to 450n, or title III of the Indian Self-Determination and 286.34 Education Assistance Act, Public Law Number 93-638, if those 286.35 services would otherwise be covered under section 256B.0625. 286.36 Payments for services provided under this subdivision shall be 287.1 made on a fee-for-service basis, and may, at the option of the 287.2 tribe or tribal organization, be made according to rates 287.3 authorized under sections 256.969, subdivision 16, and 287.4 256B.0625, subdivision 34. Implementation of this purchasing 287.5 model is contingent on federal approval. 287.6 (b) The commissioner of human services, in consultation 287.7 with tribal governments, shall develop a plan for tribes to 287.8 assist in the enrollment process for American Indian recipients 287.9 enrolled in the demonstration project for people with 287.10 disabilities under this section. This plan also shall address 287.11 how tribes will be included in ensuring the coordination of care 287.12 for American Indian recipients between Indian health service or 287.13 tribal providers and other providers. 287.14 (c) For purposes of this subdivision, "American Indian" has 287.15 the meaning given to persons to whom services will be provided 287.16 for in Code of Federal Regulations, title 42, section 36.12. 287.17 Sec. 72. Minnesota Statutes 1998, section 256B.77, 287.18 subdivision 8, is amended to read: 287.19 Subd. 8. [RESPONSIBILITIES OF THE COUNTY ADMINISTRATIVE 287.20 ENTITY.] (a) The county administrative entity shall meet the 287.21 requirements of this subdivision, unless the county authority or 287.22 the commissioner, with written approval of the county authority, 287.23 enters into a service delivery contract with a service delivery 287.24 organization for any or all of the requirements contained in 287.25 this subdivision. 287.26 (b) The county administrative entity shall enroll eligible 287.27 individuals regardless of health or disability status. 287.28 (c) The county administrative entity shall provide all 287.29 enrollees timely access to the medical assistance benefit set. 287.30 Alternative services and additional services are available to 287.31 enrollees at the option of the county administrative entity and 287.32 may be provided if specified in the personal support plan. 287.33 County authorities are not required to seek prior authorization 287.34 from the department as required by the laws and rules governing 287.35 medical assistance. 287.36 (d) The county administrative entity shall cover necessary 288.1 services as a result of an emergency without prior 288.2 authorization, even if the services were rendered outside of the 288.3 provider network. 288.4 (e) The county administrative entity shall authorize 288.5 necessary and appropriate services when needed and requested by 288.6 the enrollee or the enrollee's legal representative in response 288.7 to an urgent situation. Enrollees shall have 24-hour access to 288.8 urgent care services coordinated by experienced disability 288.9 providers who have information about enrollees' needs and 288.10 conditions. 288.11 (f) The county administrative entity shall accept the 288.12 capitation payment from the commissioner in return for the 288.13 provision of services for enrollees. 288.14 (g) The county administrative entity shall maintain 288.15 internal grievance and complaint procedures, including an 288.16 expedited informal complaint process in which the county 288.17 administrative entity must respond to verbal complaints within 288.18 ten calendar days, and a formal grievance process, in which the 288.19 county administrative entity must respond to written complaints 288.20 within 30 calendar days. 288.21 (h) The county administrative entity shall provide a 288.22 certificate of coverage, upon enrollment, to each enrollee and 288.23 the enrollee's legal representative, if any, which describes the 288.24 benefits covered by the county administrative entity, any 288.25 limitations on those benefits, and information about providers 288.26 and the service delivery network. This information must also be 288.27 made available to prospective enrollees. This certificate must 288.28 be approved by the commissioner. 288.29 (i) The county administrative entity shall present evidence 288.30 of an expedited process to approve exceptions to benefits, 288.31 provider network restrictions, and other plan limitations under 288.32 appropriate circumstances. 288.33 (j) The county administrative entity shall provide 288.34 enrollees or their legal representatives with written notice of 288.35 their appeal rights under subdivision 16, and of ombudsman and 288.36 advocacy programs under subdivisions 13 and 14, at the following 289.1 times: upon enrollment, upon submission of a written complaint, 289.2 when a service is reduced, denied, or terminated, or when 289.3 renewal of authorization for ongoing service is refused. 289.4 (k) The county administrative entity shall determine 289.5 immediate needs, including services, support, and assessments, 289.6 within 30 calendar daysofafter enrollment, or within a shorter 289.7 time frame if specified in the intergovernmental contract. 289.8 (l) The county administrative entity shall assess the need 289.9 for services of new enrollees within 60 calendar daysofafter 289.10 enrollment, or within a shorter time frame if specified in the 289.11 intergovernmental contract, and periodically reassess the need 289.12 for services for all enrollees. 289.13 (m) The county administrative entity shall ensure the 289.14 development of a personal support plan for each person within 60 289.15 calendar days of enrollment, or within a shorter time frame if 289.16 specified in the intergovernmental contract, unless otherwise 289.17 agreed to by the enrollee and the enrollee's legal 289.18 representative, if any. Until a personal support plan is 289.19 developed and agreed to by the enrollee, enrollees must have 289.20 access to the same amount, type, setting, duration, and 289.21 frequency of covered services that they had at the time of 289.22 enrollment unless other covered services are needed. For an 289.23 enrollee who is not receiving covered services at the time of 289.24 enrollment and for enrollees whose personal support plan is 289.25 being revised, access to the medical assistance benefit set must 289.26 be assured until a personal support plan is developed or 289.27 revised. If an enrollee chooses not to develop a personal 289.28 support plan, the enrollee will be subject to the network and 289.29 prior authorization requirements of the county administrative 289.30 entity or service delivery organization 60 days after 289.31 enrollment. An enrollee can choose to have a personal support 289.32 plan developed at any time. The personal support plan must be 289.33 based on choices, preferences, and assessed needs and strengths 289.34 of the enrollee. The service coordinator shall develop the 289.35 personal support plan, in consultation with the enrollee or the 289.36 enrollee's legal representative and other individuals requested 290.1 by the enrollee. The personal support plan must be updated as 290.2 needed or as requested by the enrollee. Enrollees may choose 290.3 not to have a personal support plan. 290.4 (n) The county administrative entity shall ensure timely 290.5 authorization, arrangement, and continuity of needed and covered 290.6 supports and services. 290.7 (o) The county administrative entity shall offer service 290.8 coordination that fulfills the responsibilities under 290.9 subdivision 12 and is appropriate to the enrollee's needs, 290.10 choices, and preferences, including a choice of service 290.11 coordinator. 290.12 (p) The county administrative entity shall contract with 290.13 schools and other agencies as appropriate to provide otherwise 290.14 covered medically necessary medical assistance services as 290.15 described in an enrollee's individual family support plan, as 290.16 described in sections 125A.26 to 125A.48, or individual 290.17 education plan, as described in chapter 125A. 290.18 (q) The county administrative entity shall develop and 290.19 implement strategies, based on consultation with affected 290.20 groups, to respect diversity and ensure culturally competent 290.21 service delivery in a manner that promotes the physical, social, 290.22 psychological, and spiritual well-being of enrollees and 290.23 preserves the dignity of individuals, families, and their 290.24 communities. 290.25 (r) When an enrollee changes county authorities, county 290.26 administrative entities shall ensure coordination with the 290.27 entity that is assuming responsibility for administering the 290.28 medical assistance benefit set to ensure continuity of supports 290.29 and services for the enrollee. 290.30 (s) The county administrative entity shall comply with 290.31 additional requirements as specified in the intergovernmental 290.32 contract. 290.33 (t) To the extent that alternatives are approved under 290.34 subdivision 17, county administrative entities must provide for 290.35 the health and safety of enrollees and protect the rights to 290.36 privacy and to provide informed consent. 291.1 Sec. 73. Minnesota Statutes 1998, section 256B.77, 291.2 subdivision 10, is amended to read: 291.3 Subd. 10. [CAPITATION PAYMENT.] (a) The commissioner shall 291.4 pay a capitation payment to the county authority and, when 291.5 applicable under subdivision 6, paragraph (a), to the service 291.6 delivery organization for each medical assistance eligible 291.7 enrollee. The commissioner shall develop capitation payment 291.8 rates for the initial contract period for each demonstration 291.9 site in consultation with an independent actuary, to ensure that 291.10 the cost of services under the demonstration project does not 291.11 exceed the estimated cost for medical assistance services for 291.12 the covered population under the fee-for-service system for the 291.13 demonstration period. For each year of the demonstration 291.14 project, the capitation payment rate shall be based on 96 291.15 percent of the projected per person costs that would otherwise 291.16 have been paid under medical assistance fee-for-service during 291.17 each of those years. Rates shall be adjusted within the limits 291.18 of the available risk adjustment technology, as mandated by 291.19 section 62Q.03. In addition, the commissioner shall implement 291.20 appropriate risk and savings sharing provisions with county 291.21 administrative entities and, when applicable under subdivision 291.22 6, paragraph (a), service delivery organizations within the 291.23 projected budget limits. Capitation rates shall be adjusted, at 291.24 least annually, to include any rate increases and payments for 291.25 expanded or newly covered services for eligible individuals. 291.26 The initial demonstration project rate shall include an amount 291.27 in addition to the fee-for-service payments to adjust for 291.28 underutilization of dental services. Any savings beyond those 291.29 allowed for the county authority, county administrative entity, 291.30 or service delivery organization shall be first used to meet the 291.31 unmet needs of eligible individuals. Payments to providers 291.32 participating in the project are exempt from the requirements of 291.33 sections 256.966 and 256B.03, subdivision 2. 291.34 (b) The commissioner shall monitor and evaluate annually 291.35 the effect of the discount on consumers, the county authority, 291.36 and providers of disability services. Findings shall be 292.1 reported and recommendations made, as appropriate, to ensure 292.2 that the discount effect does not adversely affect the ability 292.3 of the county administrative entity or providers of services to 292.4 provide appropriate services to eligible individuals, and does 292.5 not result in cost shifting of eligible individuals to the 292.6 county authority. 292.7 (c) For risk-sharing to occur under this subdivision, the 292.8 aggregate fee-for-service cost of covered services provided by 292.9 the county administrative entity under this section must exceed 292.10 the aggregate sum of capitation payments made to the county 292.11 administrative entity under this section. The county authority 292.12 is required to maintain its current level of nonmedical 292.13 assistance spending on enrollees. If the county authority 292.14 spends less in nonmedical assistance dollars on enrollees than 292.15 it spent the year prior to the contract year, the amount of 292.16 underspending shall be deducted from the aggregate 292.17 fee-for-service cost of covered services. The commissioner 292.18 shall then compare the fee-for-service costs and capitation 292.19 payments related to the services provided for the term of this 292.20 contract. The commissioner shall base its calculation of the 292.21 fee-for-service costs on application of the medical assistance 292.22 fee schedule to services identified on the county administrative 292.23 entity's encounter claims submitted to the commissioner. The 292.24 aggregate fee-for-service cost shall not include any third-party 292.25 recoveries or cost-avoided amounts. 292.26 If the commissioner finds that the aggregate 292.27 fee-for-service cost is greater than the sum of the capitation 292.28 payments, the commissioner shall settle according to the 292.29 following schedule: 292.30 (1) For the first contract year for each project, the 292.31 commissioner shall pay the county administrative entity 100 292.32 percent of the difference between the sum of the capitation 292.33 payments and 100 percent of projected fee-for-service costs. 292.34 For aggregate fee-for-service costs in excess of 100 percent of 292.35 projected fee-for-service costs, the commissioner shall pay 50 292.36 percent of the difference between the aggregate fee-for-service 293.1 cost and the projected fee-for-service cost, up to 104 percent 293.2 of the projected fee-for-service costs. The county 293.3 administrative entity shall be responsible for all costs in 293.4 excess of 104 percent of projected fee-for-service costs. 293.5 (2) For the second contract year for each project, the 293.6 commissioner shall pay the county administrative entity 75 293.7 percent of the difference between the sum of the capitation 293.8 payments and 100 percent of projected fee-for-service costs. 293.9 The county administrative entity shall be responsible for all 293.10 costs in excess of 100 percent of projected fee-for-service 293.11 costs. 293.12 (3) For the third contract year for each project, the 293.13 commissioner shall pay the county administrative entity 50 293.14 percent of the difference between the sum of the capitation 293.15 payments and 100 percent of projected fee-for-service costs. 293.16 The county administrative entity shall be responsible for all 293.17 costs in excess of 100 percent of projected fee-for-service 293.18 costs. 293.19 (4) For the fourth and subsequent contract years for each 293.20 project, the county administrative entity shall be responsible 293.21 for all costs in excess of the capitation payments. 293.22 (d) In addition to other payments under this subdivision, 293.23 the commissioner may increase payments by up to 0.5 percent of 293.24 the projected per person costs that would otherwise have been 293.25 paid under medical assistance fee-for-service. The commissioner 293.26 may make the increased payments to: 293.27 (1) offset rate increases for regional treatment services 293.28 under subdivision 22 which are higher than was expected by the 293.29 commissioner when the capitation was set at 96 percent; and 293.30 (2) implement incentives to encourage appropriate, high 293.31 quality, efficient services. 293.32 Sec. 74. Minnesota Statutes 1998, section 256B.77, 293.33 subdivision 14, is amended to read: 293.34 Subd. 14. [EXTERNAL ADVOCACY.] In addition to ombudsman 293.35 services, enrollees shall have access to advocacy services on a 293.36 local or regional basis. The purpose of external advocacy 294.1 includes providing individual advocacy services for enrollees 294.2 who have complaints or grievances with the county administrative 294.3 entity, service delivery organization, or a service provider; 294.4 assisting enrollees to understand the service delivery system 294.5 and select providers and, if applicable, a service delivery 294.6 organization; and understand and exercise their rights as an 294.7 enrollee. External advocacy contractors must demonstrate that 294.8 they have the expertise to advocate on behalfof all categories294.9 of eligible individuals and are independent of the commissioner, 294.10 county authority, county administrative entity, service delivery 294.11 organization, or any service provider within the demonstration 294.12 project. 294.13 These advocacy services shall be provided through the 294.14 ombudsman for mental health and mental retardation directly, or 294.15 under contract with private, nonprofit organizations, with 294.16 funding provided through the demonstration project. The funding 294.17 shall be provided annually to the ombudsman's officebased on294.180.1 percent of the projected per person costs that would294.19otherwise have been paid under medical assistance294.20fee-for-service during those years. Funding for external 294.21 advocacy shall be providedfor each year of the demonstration294.22periodthrough general fund appropriations. This funding is in 294.23 addition to the capitation payment available under subdivision 294.24 10. 294.25 Sec. 75. Minnesota Statutes 1998, section 256B.77, is 294.26 amended by adding a subdivision to read: 294.27 Subd. 27. [SERVICE COORDINATION TRANSITION.] Demonstration 294.28 sites designated under subdivision 5, with the permission of an 294.29 eligible individual, may implement the provisions of subdivision 294.30 12 beginning 60 calendar days prior to an individual's 294.31 enrollment. This implementation may occur prior to the 294.32 enrollment of eligible individuals, but is restricted to 294.33 eligible individuals. 294.34 Sec. 76. Minnesota Statutes 1998, section 256D.03, 294.35 subdivision 4, is amended to read: 294.36 Subd. 4. [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] (a) 295.1 For a person who is eligible under subdivision 3, paragraph (a), 295.2 clause (3), general assistance medical care covers, except as 295.3 provided in paragraph (c): 295.4 (1) inpatient hospital services; 295.5 (2) outpatient hospital services; 295.6 (3) services provided by Medicare certified rehabilitation 295.7 agencies; 295.8 (4) prescription drugs and other products recommended 295.9 through the process established in section 256B.0625, 295.10 subdivision 13; 295.11 (5) equipment necessary to administer insulin and 295.12 diagnostic supplies and equipment for diabetics to monitor blood 295.13 sugar level; 295.14 (6) eyeglasses and eye examinations provided by a physician 295.15 or optometrist; 295.16 (7) hearing aids; 295.17 (8) prosthetic devices; 295.18 (9) laboratory and X-ray services; 295.19 (10) physician's services; 295.20 (11) medical transportation; 295.21 (12) chiropractic services as covered under the medical 295.22 assistance program; 295.23 (13) podiatric services; 295.24 (14) dental services; 295.25 (15) outpatient services provided by a mental health center 295.26 or clinic that is under contract with the county board and is 295.27 established under section 245.62; 295.28 (16) day treatment services for mental illness provided 295.29 under contract with the county board; 295.30 (17) prescribed medications for persons who have been 295.31 diagnosed as mentally ill as necessary to prevent more 295.32 restrictive institutionalization; 295.33 (18) psychological services, medical supplies and 295.34 equipment, and Medicare premiums, coinsurance and deductible 295.35 payments; 295.36 (19) medical equipment not specifically listed in this 296.1 paragraph when the use of the equipment will prevent the need 296.2 for costlier services that are reimbursable under this 296.3 subdivision; 296.4 (20) services performed by a certified pediatric nurse 296.5 practitioner, a certified family nurse practitioner, a certified 296.6 adult nurse practitioner, a certified obstetric/gynecological 296.7 nurse practitioner, a certified neonatal nurse practitioner, or 296.8 a certified geriatric nurse practitioner in independent 296.9 practice, if the services are otherwise covered under this 296.10 chapter as a physician service, if services provided on an 296.11 inpatient basis are not included as part of the cost for 296.12 inpatient services included in the operating payment rate, and 296.13 if the service is within the scope of practice of the nurse 296.14 practitioner's license as a registered nurse, as defined in 296.15 section 148.171;and296.16 (21) services of a certified public health nurse or a 296.17 registered nurse practicing in a public health nursing clinic 296.18 that is a department of, or that operates under the direct 296.19 authority of, a unit of government, if the service is within the 296.20 scope of practice of the public health nurse's license as a 296.21 registered nurse, as defined in section 148.171; and 296.22 (22) telemedicine consultations, to the extent they are 296.23 covered under section 256B.0625, subdivision 3b. 296.24 (b) Except as provided in paragraph (c), for a recipient 296.25 who is eligible under subdivision 3, paragraph (a), clause (1) 296.26 or (2), general assistance medical care covers the services 296.27 listed in paragraph (a) with the exception of special 296.28 transportation services. 296.29 (c) Gender reassignment surgery and related services are 296.30 not covered services under this subdivision unless the 296.31 individual began receiving gender reassignment services prior to 296.32 July 1, 1995. 296.33 (d) In order to contain costs, the commissioner of human 296.34 services shall select vendors of medical care who can provide 296.35 the most economical care consistent with high medical standards 296.36 and shall where possible contract with organizations on a 297.1 prepaid capitation basis to provide these services. The 297.2 commissioner shall consider proposals by counties and vendors 297.3 for prepaid health plans, competitive bidding programs, block 297.4 grants, or other vendor payment mechanisms designed to provide 297.5 services in an economical manner or to control utilization, with 297.6 safeguards to ensure that necessary services are provided. 297.7 Before implementing prepaid programs in counties with a county 297.8 operated or affiliated public teaching hospital or a hospital or 297.9 clinic operated by the University of Minnesota, the commissioner 297.10 shall consider the risks the prepaid program creates for the 297.11 hospital and allow the county or hospital the opportunity to 297.12 participate in the program in a manner that reflects the risk of 297.13 adverse selection and the nature of the patients served by the 297.14 hospital, provided the terms of participation in the program are 297.15 competitive with the terms of other participants considering the 297.16 nature of the population served. Payment for services provided 297.17 pursuant to this subdivision shall be as provided to medical 297.18 assistance vendors of these services under sections 256B.02, 297.19 subdivision 8, and 256B.0625. For payments made during fiscal 297.20 year 1990 and later years, the commissioner shall consult with 297.21 an independent actuary in establishing prepayment rates, but 297.22 shall retain final control over the rate methodology. 297.23 Notwithstanding the provisions of subdivision 3, an individual 297.24 who becomes ineligible for general assistance medical care 297.25 because of failure to submit income reports or recertification 297.26 forms in a timely manner, shall remain enrolled in the prepaid 297.27 health plan and shall remain eligible for general assistance 297.28 medical care coverage through the last day of the month in which 297.29 the enrollee became ineligible for general assistance medical 297.30 care. 297.31 (e) The commissioner of human services may reduce payments 297.32 provided under sections 256D.01 to 256D.21 and 261.23 in order 297.33 to remain within the amount appropriated for general assistance 297.34 medical care, within the following restrictions: 297.35 (i) For the period July 1, 1985 to December 31, 1985, 297.36 reductions below the cost per service unit allowable under 298.1 section 256.966, are permitted only as follows: payments for 298.2 inpatient and outpatient hospital care provided in response to a 298.3 primary diagnosis of chemical dependency or mental illness may 298.4 be reduced no more than 30 percent; payments for all other 298.5 inpatient hospital care may be reduced no more than 20 percent. 298.6 Reductions below the payments allowable under general assistance 298.7 medical care for the remaining general assistance medical care 298.8 services allowable under this subdivision may be reduced no more 298.9 than ten percent. 298.10 (ii) For the period January 1, 1986 to December 31, 1986, 298.11 reductions below the cost per service unit allowable under 298.12 section 256.966 are permitted only as follows: payments for 298.13 inpatient and outpatient hospital care provided in response to a 298.14 primary diagnosis of chemical dependency or mental illness may 298.15 be reduced no more than 20 percent; payments for all other 298.16 inpatient hospital care may be reduced no more than 15 percent. 298.17 Reductions below the payments allowable under general assistance 298.18 medical care for the remaining general assistance medical care 298.19 services allowable under this subdivision may be reduced no more 298.20 than five percent. 298.21 (iii) For the period January 1, 1987 to June 30, 1987, 298.22 reductions below the cost per service unit allowable under 298.23 section 256.966 are permitted only as follows: payments for 298.24 inpatient and outpatient hospital care provided in response to a 298.25 primary diagnosis of chemical dependency or mental illness may 298.26 be reduced no more than 15 percent; payments for all other 298.27 inpatient hospital care may be reduced no more than ten 298.28 percent. Reductions below the payments allowable under medical 298.29 assistance for the remaining general assistance medical care 298.30 services allowable under this subdivision may be reduced no more 298.31 than five percent. 298.32 (iv) For the period July 1, 1987 to June 30, 1988, 298.33 reductions below the cost per service unit allowable under 298.34 section 256.966 are permitted only as follows: payments for 298.35 inpatient and outpatient hospital care provided in response to a 298.36 primary diagnosis of chemical dependency or mental illness may 299.1 be reduced no more than 15 percent; payments for all other 299.2 inpatient hospital care may be reduced no more than five percent. 299.3 Reductions below the payments allowable under medical assistance 299.4 for the remaining general assistance medical care services 299.5 allowable under this subdivision may be reduced no more than 299.6 five percent. 299.7 (v) For the period July 1, 1988 to June 30, 1989, 299.8 reductions below the cost per service unit allowable under 299.9 section 256.966 are permitted only as follows: payments for 299.10 inpatient and outpatient hospital care provided in response to a 299.11 primary diagnosis of chemical dependency or mental illness may 299.12 be reduced no more than 15 percent; payments for all other 299.13 inpatient hospital care may not be reduced. Reductions below 299.14 the payments allowable under medical assistance for the 299.15 remaining general assistance medical care services allowable 299.16 under this subdivision may be reduced no more than five percent. 299.17 (f) There shall be no copayment required of any recipient 299.18 of benefits for any services provided under this subdivision. A 299.19 hospital receiving a reduced payment as a result of this section 299.20 may apply the unpaid balance toward satisfaction of the 299.21 hospital's bad debts. 299.22 (g) Any county may, from its own resources, provide medical 299.23 payments for which state payments are not made. 299.24 (h) Chemical dependency services that are reimbursed under 299.25 chapter 254B must not be reimbursed under general assistance 299.26 medical care. 299.27 (i) The maximum payment for new vendors enrolled in the 299.28 general assistance medical care program after the base year 299.29 shall be determined from the average usual and customary charge 299.30 of the same vendor type enrolled in the base year. 299.31 (j) The conditions of payment for services under this 299.32 subdivision are the same as the conditions specified in rules 299.33 adopted under chapter 256B governing the medical assistance 299.34 program, unless otherwise provided by statute or rule. 299.35 Sec. 77. Minnesota Statutes 1998, section 256L.01, 299.36 subdivision 4, is amended to read: 300.1 Subd. 4. [GROSS INDIVIDUAL OR GROSS FAMILY INCOME.] 300.2 (a) "Gross individual or gross family income" forfarm and300.3 nonfarm self-employed means income calculated using as the 300.4 baseline the adjusted gross income reported on the applicant's 300.5 federal income tax form for the previous year and adding back in 300.6 reported depreciation, carryover loss, and net operating loss 300.7 amounts that apply to the business in which the family is 300.8 currently engaged. 300.9 (b) "Gross individual or gross family income" for farm 300.10 self-employed means income calculated using as the baseline the 300.11 adjusted gross income reported on the applicant's federal income 300.12 tax form for the previous year and adding back in reported 300.13 depreciation amounts that apply to the business in which the 300.14 family is currently engaged. 300.15 (c) Applicants shall report the most recent financial 300.16 situation of the family if it has changed from the period of 300.17 time covered by the federal income tax form. The report may be 300.18 in the form of percentage increase or decrease. 300.19 Sec. 78. Minnesota Statutes 1998, section 256L.04, 300.20 subdivision 2, is amended to read: 300.21 Subd. 2. [COOPERATION IN ESTABLISHING THIRD-PARTY 300.22 LIABILITY, PATERNITY, AND OTHER MEDICAL SUPPORT.] (a) To be 300.23 eligible for MinnesotaCare, individuals and families must 300.24 cooperate with the state agency to identify potentially liable 300.25 third-party payers and assist the state in obtaining third-party 300.26 payments. "Cooperation" includes, but is not limited to, 300.27 identifying any third party who may be liable for care and 300.28 services provided under MinnesotaCare to the enrollee, providing 300.29 relevant information to assist the state in pursuing a 300.30 potentially liable third party, and completing forms necessary 300.31 to recover third-party payments. 300.32 (b) A parent, guardian, relative caretaker, or child 300.33 enrolled in the MinnesotaCare program must cooperate with the 300.34 department of human services and the local agency in 300.35 establishing the paternity of an enrolled child and in obtaining 300.36 medical care support and payments for the child and any other 301.1 person for whom the person can legally assign rights, in 301.2 accordance with applicable laws and rules governing the medical 301.3 assistance program. A child shall not be ineligible for or 301.4 disenrolled from the MinnesotaCare program solely because the 301.5 child's parent, relative caretaker, or guardian fails to 301.6 cooperate in establishing paternity or obtaining medical support. 301.7 Sec. 79. Minnesota Statutes 1998, section 256L.04, 301.8 subdivision 8, is amended to read: 301.9 Subd. 8. [APPLICANTS POTENTIALLY ELIGIBLE FOR MEDICAL 301.10 ASSISTANCE.] (a) Individuals who receive supplemental security 301.11 income or retirement, survivors, or disability benefits due to a 301.12 disability, or other disability-based pension, who qualify under 301.13 subdivision 7, but who are potentially eligible for medical 301.14 assistance without a spenddown shall be allowed to enroll in 301.15 MinnesotaCare for a period of 60 days, so long as the applicant 301.16 meets all other conditions of eligibility. The commissioner 301.17 shall identify and refer the applications of such individuals to 301.18 their county social service agency. The county and the 301.19 commissioner shall cooperate to ensure that the individuals 301.20 obtain medical assistance coverage for any months for which they 301.21 are eligible. 301.22 (b) The enrollee must cooperate with the county social 301.23 service agency in determining medical assistance eligibility 301.24 within the 60-day enrollment period. Enrollees who do not 301.25 cooperate with medical assistance within the 60-day enrollment 301.26 period shall be disenrolled from the plan within one calendar 301.27 month. Persons disenrolled for nonapplication for medical 301.28 assistance may not reenroll until they have obtained a medical 301.29 assistance eligibility determination. Persons disenrolled for 301.30 noncooperation with medical assistance may not reenroll until 301.31 they have cooperated with the county agency and have obtained a 301.32 medical assistance eligibility determination. 301.33 (c) Beginning January 1, 2000, counties that choose to 301.34 become MinnesotaCare enrollment sites shall consider 301.35 MinnesotaCare applicationsof individuals described in paragraph301.36(a)to also be applications for medical assistanceand shall302.1first determine whether medical assistance eligibility exists. 302.2Adults with children with family income under 175 percent of the302.3federal poverty guidelines for the applicable family size,302.4pregnant women, and children who qualify under subdivision 1302.5 Applicants who are potentially eligible for medical assistance, 302.6 except for those described in paragraph (a),without a spenddown302.7 may choose to enroll in either MinnesotaCare or medical 302.8 assistance. 302.9 (d) The commissioner shall redetermine provider payments 302.10 made under MinnesotaCare to the appropriate medical assistance 302.11 payments for those enrollees who subsequently become eligible 302.12 for medical assistance. 302.13 Sec. 80. Minnesota Statutes 1998, section 256L.04, 302.14 subdivision 13, is amended to read: 302.15 Subd. 13. [FAMILIES WITHGRANDPARENTS,RELATIVE 302.16 CARETAKERS, FOSTER PARENTS, OR LEGAL GUARDIANS.] Beginning 302.17 January 1, 1999, in families that include agrandparent,302.18 relative caretaker as defined in the medical assistance program, 302.19 foster parent, or legal guardian, thegrandparent,relative 302.20 caretaker, foster parent, or legal guardian may apply as a 302.21 family or may apply separately for the children. If the 302.22 caretaker applies separately for the children, only the 302.23 children's income is counted and the provisions of subdivision 302.24 1, paragraph (b), do not apply. If thegrandparent,relative 302.25 caretaker, foster parent, or legal guardian applies with the 302.26 children, their income is included in the gross family income 302.27 for determining eligibility and premium amount. 302.28 Sec. 81. Minnesota Statutes 1998, section 256L.05, 302.29 subdivision 4, is amended to read: 302.30 Subd. 4. [APPLICATION PROCESSING.] The commissioner of 302.31 human services shall determine an applicant's eligibility for 302.32 MinnesotaCare no more than 30 days from the date that the 302.33 application is received by the department of human services. 302.34 Beginning January 1, 2000, this requirement also applies to 302.35 local county human services agencies that determine eligibility 302.36 for MinnesotaCare. Once annually at application or 303.1 reenrollment, to prevent processing delays, applicants or 303.2 enrollees who, from the information provided on the application, 303.3 appear to meet eligibility requirements shall be enrolled upon 303.4 timely payment of premiums. The enrollee must provide all 303.5 required verifications within 30 days ofenrollmentnotification 303.6 of the eligibility determination or coverage from the program 303.7 shall be terminated. Enrollees who are determined to be 303.8 ineligible when verifications are provided shall be disenrolled 303.9 from the program. 303.10 Sec. 82. Minnesota Statutes 1998, section 256L.06, 303.11 subdivision 3, is amended to read: 303.12 Subd. 3. [ADMINISTRATION AND COMMISSIONER'S DUTIES.] (a) 303.13 Premiums are dedicated to the commissioner for MinnesotaCare. 303.14 (b) The commissioner shall develop and implement procedures 303.15 to: (1) require enrollees to report changes in income; (2) 303.16 adjust sliding scale premium payments, based upon changes in 303.17 enrollee income; and (3) disenroll enrollees from MinnesotaCare 303.18 for failure to pay required premiums.Beginning July 1, 1998,303.19 Failure to pay includes payment with a dishonored checkand, a 303.20 returned automatic bank withdrawal, or a refused credit card or 303.21 debit card payment. The commissioner may demand a guaranteed 303.22 form of payment, including a cashier's check or a money order, 303.23 as the only means to replace a dishonoredcheck, returned, or 303.24 refused payment. 303.25 (c) Premiums are calculated on a calendar month basis and 303.26 may be paid on a monthly, quarterly, or annual basis, with the 303.27 first payment due upon notice from the commissioner of the 303.28 premium amount required. The commissioner shall inform 303.29 applicants and enrollees of these premium payment options. 303.30 Premium payment is required before enrollment is complete and to 303.31 maintain eligibility in MinnesotaCare. 303.32 (d) Nonpayment of the premium will result in disenrollment 303.33 from the plan within one calendar month after the due date. 303.34 Persons disenrolled for nonpayment or who voluntarily terminate 303.35 coverage from the program may not reenroll until four calendar 303.36 months have elapsed. Persons disenrolled for nonpayment who pay 304.1 all past due premiums as well as current premiums due, including 304.2 premiums due for the period of disenrollment, within 20 days of 304.3 disenrollment, shall be reenrolled retroactively to the first 304.4 day of disenrollment. Persons disenrolled for nonpayment or who 304.5 voluntarily terminate coverage from the program may not reenroll 304.6 for four calendar months unless the person demonstrates good 304.7 cause for nonpayment. Good cause does not exist if a person 304.8 chooses to pay other family expenses instead of the premium. 304.9 The commissioner shall define good cause in rule. 304.10 Sec. 83. Minnesota Statutes 1998, section 256L.07, is 304.11 amended to read: 304.12 256L.07 [ELIGIBILITY FORSUBSIDIZED PREMIUMS BASED ON304.13SLIDING SCALEMINNESOTACARE.] 304.14 Subdivision 1. [GENERAL REQUIREMENTS.] (a) Children 304.15 enrolled in the original children's health plan as of September 304.16 30, 1992, children who enrolled in the MinnesotaCare program 304.17 after September 30, 1992, pursuant to Laws 1992, chapter 549, 304.18 article 4, section 17, and children who have family gross 304.19 incomes that are equal to or less than 150 percent of the 304.20 federal poverty guidelines are eligiblefor subsidized premium304.21paymentswithout meeting the requirements of subdivision 2, as 304.22 long as they maintain continuous coverage in the MinnesotaCare 304.23 program or medical assistance. Children who apply for 304.24 MinnesotaCare on or after the implementation date of the 304.25 employer-subsidized health coverage program as described in Laws 304.26 1998, chapter 407, article 5, section 45, who have family gross 304.27 incomes that are equal to or less than 150 percent of the 304.28 federal poverty guidelines, must meet the requirements of 304.29 subdivision 2 to be eligible for MinnesotaCare. 304.30 (b) Families enrolled in MinnesotaCare under section 304.31 256L.04, subdivision 1, whose income increases above 275 percent 304.32 of the federal poverty guidelines, are no longer eligible for 304.33 the program and shall be disenrolled by the commissioner. 304.34 Individuals enrolled in MinnesotaCare under section 256L.04, 304.35 subdivision 7, whose income increases above 175 percent of the 304.36 federal poverty guidelines are no longer eligible for the 305.1 program and shall be disenrolled by the commissioner. For 305.2 persons disenrolled under this subdivision, MinnesotaCare 305.3 coverage terminates the last day of the calendar month following 305.4 the month in which the commissioner determines that the income 305.5 of a family or individual, determined over a four-month period305.6as required by section 256L.15, subdivision 2,exceeds program 305.7 income limits. 305.8 (c) Notwithstanding paragraph (b), individuals and families 305.9 may remain enrolled in MinnesotaCare if ten percent of their 305.10 annual income is less than the annual premium for a policy with 305.11 a $500 deductible available through the Minnesota comprehensive 305.12 health association. Individuals and families who are no longer 305.13 eligible for MinnesotaCare under this subdivision shall be given 305.14 an 18-month notice period from the date that ineligibility is 305.15 determined before disenrollment. 305.16 Subd. 2. [MUST NOT HAVE ACCESS TO EMPLOYER-SUBSIDIZED 305.17 COVERAGE.] (a) To be eligiblefor subsidized premium payments305.18based on a sliding scale, a family or individual must not have 305.19 access to subsidized health coverage through an employer. A 305.20 family or individual whose employer-subsidized coverage is lost 305.21 due to an employer terminating health care coverage as an 305.22 employee benefit during the previous 18 months is not eligible. 305.23 (b) For purposes of this requirement, subsidized health 305.24 coverage means health coverage for which the employer pays at 305.25 least 50 percent of the cost of coverage for the employee or 305.26 dependent, or a higher percentage as specified by the 305.27 commissioner. Children are eligible for employer-subsidized 305.28 coverage through either parent, including the noncustodial 305.29 parent. The commissioner must treat employer contributions to 305.30 Internal Revenue Code Section 125 plans and any other employer 305.31 benefits intended to pay health care costs as qualified employer 305.32 subsidies toward the cost of health coverage for employees for 305.33 purposes of this subdivision. 305.34 Subd. 3. [OTHER HEALTH COVERAGE.] (a) Families and 305.35 individuals enrolled in the MinnesotaCare program must have no 305.36 health coverage while enrolled or for at least four months prior 306.1 to application and renewal. Children enrolled in the original 306.2 children's health plan and children in families with income 306.3 equal to or less than 150 percent of the federal poverty 306.4 guidelines, who have other health insurance, are eligible if the 306.5other health coverage meets the requirements of Minnesota Rules,306.6part 9506.0020, subpart 3, item B.coverage: 306.7 (1) lacks two or more of the following: 306.8 (i) basic hospital insurance; 306.9 (ii) medical-surgical insurance; 306.10 (iii) prescription drug coverage; 306.11 (iv) dental coverage; or 306.12 (v) vision coverage; 306.13 (2) requires a deductible of $100 or more per person per 306.14 year; or 306.15 (3) lacks coverage because the child has exceeded the 306.16 maximum coverage for a particular diagnosis or the policy 306.17 excludes a particular diagnosis. 306.18 The commissioner may change this eligibility criterion for 306.19 sliding scale premiums in order to remain within the limits of 306.20 available appropriations. The requirement of no health coverage 306.21 does not apply to newborns. 306.22 (b) For purposes of this section, medical assistance, 306.23 general assistance medical care, and civilian health and medical 306.24 program of the uniformed service, CHAMPUS, are not considered 306.25 insurance or health coverage. 306.26 (c) For purposes of this section, Medicare Part A or B 306.27 coverage under title XVIII of the Social Security Act, United 306.28 States Code, title 42, sections 1395c to 1395w-4, is considered 306.29 health coverage. An applicant or enrollee may not refuse 306.30 Medicare coverage to establish eligibility for MinnesotaCare. 306.31 (d) Applicants who were recipients of medical assistance or 306.32 general assistance medical care within one month of application 306.33 must meet the provisions of this subdivision and subdivision 2. 306.34 Sec. 84. Minnesota Statutes 1998, section 256L.15, 306.35 subdivision 1, is amended to read: 306.36 Subdivision 1. [PREMIUM DETERMINATION.] Families with 307.1 children and individuals shall pay a premium determined 307.2 according to a sliding fee based onthe cost of coverage asa 307.3 percentage of the family's gross family income. Pregnant women 307.4 and children under age two are exempt from the provisions of 307.5 section 256L.06, subdivision 3, paragraph (b), clause (3), 307.6 requiring disenrollment for failure to pay premiums. For 307.7 pregnant women, this exemption continues until the first day of 307.8 the month following the 60th day postpartum. Women who remain 307.9 enrolled during pregnancy or the postpartum period, despite 307.10 nonpayment of premiums, shall be disenrolled on the first of the 307.11 month following the 60th day postpartum for the penalty period 307.12 that otherwise applies under section 256L.06, unless they begin 307.13 paying premiums. 307.14 Sec. 85. Minnesota Statutes 1998, section 256L.15, 307.15 subdivision 1b, is amended to read: 307.16 Subd. 1b. [PAYMENTS NONREFUNDABLE.] Only MinnesotaCare 307.17 premiumsare not refundablepaid for future months of coverage 307.18 for which a health plan capitation fee has not been paid may be 307.19 refunded. 307.20 Sec. 86. Minnesota Statutes 1998, section 256L.15, 307.21 subdivision 2, is amended to read: 307.22 Subd. 2. [SLIDING FEE SCALE TO DETERMINE PERCENTAGE OF 307.23 GROSS INDIVIDUAL OR FAMILY INCOME.] (a) The commissioner shall 307.24 establish a sliding fee scale to determine the percentage of 307.25 gross individual or family income that households at different 307.26 income levels must pay to obtain coverage through the 307.27 MinnesotaCare program. The sliding fee scale must be based on 307.28 the enrollee's gross individual or family incomeduring the307.29previous four months. The sliding fee scale must contain 307.30 separate tables based on enrollment of one, two, or three or 307.31 more persons. The sliding fee scale begins with a premium of 307.32 1.5 percent of gross individual or family income for individuals 307.33 or families with incomes below the limits for the medical 307.34 assistance program for families and children in effect on 307.35 January 1, 1999, and proceeds through the followingevenly307.36 spaced steps: 1.8, 2.3, 3.1, 3.8, 4.8, 5.9, 7.4, and 8.8 308.1 percent. These percentages are matched to evenly spaced income 308.2 steps ranging from the medical assistance income limit for 308.3 families and children in effect on January 1, 1999, to 275 308.4 percent of the federal poverty guidelines for the applicable 308.5 family size, up to a family size of five. The sliding fee scale 308.6 for a family of five must be used for families of more than 308.7 five. The sliding fee scale and percentages are not subject to 308.8 the provisions of chapter 14. If a family or individual reports 308.9 increased income after enrollment, premiums shall not be 308.10 adjusted until eligibility renewal. 308.11 (b) Enrolled individuals and families whose gross annual 308.12 income increases above 275 percent of the federal poverty 308.13 guideline shall pay the maximum premium. The maximum premium is 308.14 defined as a base charge for one, two, or three or more 308.15 enrollees so that if all MinnesotaCare cases paid the maximum 308.16 premium, the total revenue would equal the total cost of 308.17 MinnesotaCare medical coverage and administration. In this 308.18 calculation, administrative costs shall be assumed to equal ten 308.19 percent of the total. The costs of medical coverage for 308.20 pregnant women and children under age two and the enrollees in 308.21 these groups shall be excluded from the total. The maximum 308.22 premium for two enrollees shall be twice the maximum premium for 308.23 one, and the maximum premium for three or more enrollees shall 308.24 be three times the maximum premium for one. 308.25 Sec. 87. Laws 1995, chapter 178, article 2, section 46, 308.26 subdivision 10, is amended to read: 308.27 Subd. 10. [ADDITIONAL WAIVER REQUEST FOR EMPLOYED DISABLED 308.28 PERSONS.] The commissioner shall seek a federal waiver in order 308.29 to implement a work incentive for disabled personseligible for308.30medical assistancewho are not residents of long-term care 308.31 facilities, when determining their eligibility for medical 308.32 assistance. The waiver shall request authorization to establish 308.33 a medical assistance earned income disregard for employed 308.34 disabled persons who, but for earned income, are eligible for 308.35 SSDI and whoreceiverequire personal care assistance under the 308.36 Medical Assistance Program. The disregard shall be equivalent 309.1 to the threshold amount applied to persons who qualify under 309.2 section 1619(b) of the Social Security Act, except that when a 309.3 disabled person's earned income reaches the maximum income 309.4 permitted at the threshold under section 1619(b), the person 309.5 shall retain medical assistance eligibility and must contribute 309.6 to the costs of medical care on a sliding fee basis. 309.7 Sec. 88. Laws 1997, chapter 225, article 4, section 4, is 309.8 amended to read: 309.9 Sec. 4. [SENIOR DRUG PROGRAM.] 309.10The commissioner shall administer the senior drug program309.11so that the costs to the state total no more than $4,000,000309.12plus the amount of the rebate. The commissioner is authorized309.13to discontinue enrollment in order to meet this level of funding.309.14 The commissioner shall report to the legislature the 309.15 estimated costs of the senior drug program without funding 309.16 caps. The report shall be included as part of the November and 309.17 February forecasts. 309.18 The commissioner of finance shall annually reimburse the 309.19 general fund with health care access funds for the estimated 309.20 increased costs in the QMB/SLMB program directly associated with 309.21 the senior drug program. This reimbursement shall sunset June 309.22 30, 2001. 309.23 Sec. 89. [HOME-BASED MENTAL HEALTH SERVICES.] 309.24 By January 1, 2000, the commissioner shall amend Minnesota 309.25 Rules under the expedited process of Minnesota Statutes, section 309.26 14.389, to effect the following changes: 309.27 (1) amend Minnesota Rules, part 9505.0324, subpart 2, to 309.28 permit a county board to contract with any agency qualified 309.29 under Minnesota Rules, part 9505.0324, subparts 4 and 5, as an 309.30 eligible provider of home-based mental health services; 309.31 (2) amend Minnesota Rules, part 9505.0324, subpart 2, to 309.32 permit children's mental health collaboratives approved by the 309.33 children's cabinet under Minnesota Statutes, section 245.493, to 309.34 provide or to contract with any agency qualified under Minnesota 309.35 Rules, part 9505.0324, subparts 4 and 5, as an eligible provider 309.36 of home-based mental health services. 310.1 Sec. 90. [AMENDING MEDICAL ASSISTANCE RULES.] 310.2 By January 1, 2001, the commissioner shall amend Minnesota 310.3 Rules, parts 9505.0323, 9505.0324, 9505.0326, and 9505.0327, as 310.4 necessary to implement the changes outlined in Minnesota 310.5 Statutes, section 256B.0625, subdivision 23. 310.6 Sec. 91. [PROGRAMS FOR SENIOR CITIZENS.] 310.7 The commissioner of human services shall study the 310.8 eligibility criteria of and benefits provided to persons age 65 310.9 and over through the array of cash assistance and health care 310.10 programs administered by the department, and the extent to which 310.11 these programs can be combined, simplified, or coordinated to 310.12 reduce administrative costs and improve access. The 310.13 commissioner shall also study potential barriers to enrollment 310.14 for low-income seniors who would otherwise deplete resources 310.15 necessary to maintain independent community living. At a 310.16 minimum, the study must include an evaluation of asset 310.17 requirements and enrollment sites. The commissioner shall 310.18 report study findings and recommendations to the legislature by 310.19 February 15, 2000. 310.20 Sec. 92. [REPORTS ON ALTERNATIVE RESOURCE ALLOCATION 310.21 METHODS AND PARENTS OF MINORS.] 310.22 (a) The commissioner of human services shall consider and 310.23 evaluate administrative methods other than the current resource 310.24 allocation system for the home and community-based waiver for 310.25 persons with mental retardation and related conditions. In 310.26 developing the alternatives, the commissioner shall consult with 310.27 county commissioners from large and small counties, county 310.28 agencies, consumers, advocates, and providers. The commissioner 310.29 shall report to the chairs of the senate health and family 310.30 security budget division and house health and human services 310.31 finance committee by January 15, 2000. 310.32 (b) By January 15, 2000, the commissioner of human services 310.33 shall present recommendations to the legislature on the 310.34 conditions under which parents of minors may be reimbursed for 310.35 services, consistent with federal requirements, health and 310.36 safety, the child's needs, and not supplanting typical parental 311.1 responsibilities. 311.2 Sec. 93. [REPORT ON RATE SETTING AND RISK ADJUSTMENT.] 311.3 The commissioner of human services shall report to the 311.4 legislature, by January 15, 2000, on the current rate setting 311.5 process for state prepaid health care programs, rate setting and 311.6 risk adjustment methods in other states, and the results of the 311.7 application of risk adjustment on a trial basis in Minnesota for 311.8 calendar year 1999. The report must also present an analysis of 311.9 the feasibility of requiring prepaid health plans to report 311.10 vendor costs rather than charges, an analysis of capitation rate 311.11 equalization for MinnesotaCare and the prepaid medical 311.12 assistance program, an analysis of the fiscal impact on state 311.13 and county government of repealing Minnesota Statutes 1998, 311.14 section 256B.69, subdivision 5d, and recommendations for 311.15 providing actuarial and market analyses related to setting 311.16 prepaid health plan rates to the legislature on a timely basis 311.17 that would allow this information to be used in the 311.18 appropriations process. 311.19 Sec. 94. [REPORT ON PREPAID MEDICAL ASSISTANCE PROGRAM.] 311.20 The commissioner of human services shall present 311.21 recommendations to the legislature, by December 15, 1999, on 311.22 methods for implementing county board authority under the 311.23 prepaid medical assistance program. 311.24 Sec. 95. [REQUEST FOR WAIVER.] 311.25 By October 1, 1999, the commissioner of human services or 311.26 health shall request a waiver from the federal Department of 311.27 Health and Human Services to implement Minnesota Statutes, 311.28 256B.0951, subdivision 7. 311.29 Sec. 96. [EXPANSION OF SPECIAL EDUCATION SERVICES.] 311.30 The commissioner shall examine opportunities to expand the 311.31 scope of providers eligible for reimbursement for medical 311.32 assistance services listed in a child's individual education 311.33 plan, based on state and federal requirements for provider 311.34 qualifications. The commissioner shall complete these 311.35 activities, in consultation with the commissioner of children, 311.36 families, and learning, by December 1999 and seek necessary 312.1 federal approval. 312.2 Sec. 97. [DENTAL ACCESS STUDY.] 312.3 The commissioner of human services, in consultation with 312.4 the commissioner of health, dental care providers, 312.5 representatives of community clinics, client advocacy groups, 312.6 and counties, shall review the dental access problem, evaluate 312.7 the effects of the dental access initiatives adopted by the 1999 312.8 legislature, and make recommendations on other actions that 312.9 could improve dental access for public program recipients. The 312.10 commissioner shall present a progress report to the legislature 312.11 by January 15, 2000, and shall present a final report to the 312.12 legislature by January 15, 2001. 312.13 Sec. 98. [EXPIRATION; DEFINITION OF INCOME.] 312.14 The amendments to Minnesota Statutes, section 256L.01, 312.15 subdivision 4, in section 77 expire July 1, 2002. 312.16 Sec. 99. [REVENUE MAXIMIZATION INITIATIVE.] 312.17 Subdivision 1. [PROPOSAL DESIGN.] The commissioner of 312.18 human services, in consultation with representatives of county 312.19 government, may, within the limits of available appropriations, 312.20 design proposals to: 312.21 (1) provide medical assistance coverage for mental health 312.22 treatment and other related rehabilitative services provided to 312.23 children or youth placed by a county in a residential treatment 312.24 facility; 312.25 (2) add rehabilitation services to the state medical 312.26 assistance plan for adults with mental illness or other 312.27 debilitating conditions, including, but not limited to, chemical 312.28 dependency; and 312.29 (3) provide medical assistance coverage for targeted case 312.30 management service activities for adults receiving services 312.31 through a county or state agency who are in need of service 312.32 coordination, including, but not limited to: people age 65 and 312.33 older; people in need of adult protective services; people 312.34 applying for financial assistance; people who have chemical 312.35 dependency; and people who require community social services 312.36 under Minnesota Statutes, chapter 256E. 313.1 Subd. 2. [RECOMMENDATIONS TO THE LEGISLATURE.] If 313.2 proposals under this section are developed, the commissioner of 313.3 human services shall submit to the legislature design and 313.4 implementation recommendations, and draft legislation, for the 313.5 proposals required by subdivision 1, by January 15, 2000. 313.6 Implementation shall occur by July 1, 2000, but only upon 313.7 legislative approval of these recommendations. 313.8 Subd. 3. [STATE MEDICAL ASSISTANCE PLAN AMENDMENTS.] The 313.9 commissioner of human services may develop and submit to the 313.10 federal Health Care Financing Administration, any medical 313.11 assistance state plan amendments necessary for the 313.12 implementation of the proposals in subdivision 1. 313.13 Sec. 100. [REPEALER.] 313.14 Laws 1997, chapter 203, article 7, section 27, is repealed. 313.15 Sec. 101. [EFFECTIVE DATE.] 313.16 When preparing the human services conference committee 313.17 report for adoption by the legislature, the revisor shall 313.18 combine all the bracketed effective date notations into this 313.19 effective date section. 313.20 ARTICLE 5 313.21 STATE-OPERATED SERVICES; CHEMICAL 313.22 DEPENDENCY; MENTAL HEALTH 313.23 Section 1. Minnesota Statutes 1998, section 16C.10, 313.24 subdivision 5, is amended to read: 313.25 Subd. 5. [SPECIFIC PURCHASES.] The solicitation process 313.26 described in this chapter is not required for acquisition of the 313.27 following: 313.28 (1) merchandise for resale purchased under policies 313.29 determined by the commissioner; 313.30 (2) farm and garden products which, as determined by the 313.31 commissioner, may be purchased at the prevailing market price on 313.32 the date of sale; 313.33 (3) goods and services from the Minnesota correctional 313.34 facilities; 313.35 (4) goods and services from rehabilitation facilities and 313.36 sheltered workshops that are certified by the commissioner of 314.1 economic security; 314.2 (5) goods and services for use by a community-based 314.3residentialfacility operated by the commissioner of human 314.4 services; 314.5 (6) goods purchased at auction or when submitting a sealed 314.6 bid at auction provided that before authorizing such an action, 314.7 the commissioner consult with the requesting agency to determine 314.8 a fair and reasonable value for the goods considering factors 314.9 including, but not limited to, costs associated with submitting 314.10 a bid, travel, transportation, and storage. This fair and 314.11 reasonable value must represent the limit of the state's bid; 314.12 and 314.13 (7) utility services where no competition exists or where 314.14 rates are fixed by law or ordinance. 314.15 Sec. 2. Minnesota Statutes 1998, section 245.462, 314.16 subdivision 4, is amended to read: 314.17 Subd. 4. [CASEMANAGERMANAGEMENT SERVICE PROVIDER.] (a) 314.18 "Casemanagermanagement service provider" meansan individuala 314.19 case manager or case manager associate employed by the county or 314.20 other entity authorized by the county board to provide case 314.21 management services specified in section 245.4711. 314.22 A case manager must have a bachelor's degree in one of the 314.23 behavioral sciences or related fields including, but not limited 314.24 to, social work, psychology, or nursing from an accredited 314.25 college or universityand. A case manager must have at least 314.26 2,000 hours of supervised experience in the delivery of services 314.27 to adults with mental illness, must be skilled in the process of 314.28 identifying and assessing a wide range of client needs, and must 314.29 be knowledgeable about local community resources and how to use 314.30 those resources for the benefit of the client.The case manager314.31shall meet in person with a mental health professional at least314.32once each month to obtain clinical supervision of the case314.33manager's activities. Case managers with a bachelor's degree314.34but without 2,000 hours of supervised experience in the delivery314.35of services to adults with mental illness must complete 40 hours314.36of training approved by the commissioner of human services in315.1case management skills and in the characteristics and needs of315.2adults with serious and persistent mental illness and must315.3receive clinical supervision regarding individual service315.4delivery from a mental health professional at least once each315.5week until the requirement of 2,000 hours of supervised315.6experience is met.315.7 (b) Supervision for a case manager during the first year of 315.8 service providing case management services shall be one hour per 315.9 week of clinical supervision from a case management supervisor. 315.10 After the first year, the case manager shall receive regular 315.11 ongoing supervision totaling 38 hours per year, of which at 315.12 least one hour per month must be clinical supervision regarding 315.13 individual service delivery with a case management supervisor. 315.14 The remainder may be provided by a case manager with two years 315.15 of experience. Group supervision may not constitute more than 315.16 one-half of the required supervision hours. Clinical 315.17 supervision must be documented in the client record. 315.18 (c) A case manager with a bachelor's degree who is not 315.19 licensed, registered, or certified by a health-related licensing 315.20 board must receive 30 hours of continuing education and training 315.21 in mental illness and mental health services annually. 315.22 (d) A case manager with a bachelor's degree but without 315.23 2,000 hours of supervised experience described in paragraph (a), 315.24 must complete 40 hours of training approved by the commissioner 315.25 covering case management skills and the characteristics and 315.26 needs of adults with serious and persistent mental illness. 315.27 (e) Case managers without a bachelor's degree must meet one 315.28 of the requirements in clauses (1) to (3): 315.29 (1) have three or four years of experience as a case 315.30 manager associate; 315.31 (2) be a registered nurse without a bachelor's degree and 315.32 have a combination of specialized training in psychiatry and 315.33 work experience consisting of community interaction and 315.34 involvement or community discharge planning in a mental health 315.35 setting totaling three years; or 315.36 (3) be a person who qualified as a case manager under the 316.1 1998 department of human service federal waiver provision and 316.2 meet the continuing education and mentoring requirements in this 316.3 section. 316.4 (f) A case manager associate (CMA) must work under the 316.5 direction of a case manager or case management supervisor and 316.6 must be at least 21 years of age. A case manager associate must 316.7 also have a high school diploma or its equivalent and meet one 316.8 of the following criteria: 316.9 (1) have an associate of arts degree in one of the 316.10 behavioral sciences or human services; 316.11 (2) be a registered nurse without a bachelor's degree; 316.12 (3) within the previous ten years, have three years of life 316.13 experience with serious and persistent mental illness as defined 316.14 in section 245.462, subdivision 20; or as a child had severe 316.15 emotional disturbance as defined in section 245.4871, 316.16 subdivision 6; or have three years life experience as a primary 316.17 caregiver to an adult with serious and persistent mental illness 316.18 within the previous ten years; 316.19 (4) have 6,000 hours work experience as a nondegreed state 316.20 hospital technician; or 316.21 (5) be a mental health practitioner as defined in section 316.22 245.462, subdivision 17, clause (2). 316.23 Individuals meeting one of the criteria in clauses (1) to 316.24 (4) may qualify as a case manager after four years of supervised 316.25 work experience as a case manager associate. Individuals 316.26 meeting the criteria in clause (5) may qualify as a case manager 316.27 after three years of supervised experience as a case manager 316.28 associate. 316.29 Case management associates must have 40 hours preservice 316.30 training under paragraph (d) and receive at least 40 hours of 316.31 continuing education in mental illness and mental health 316.32 services annually. Case manager associates shall receive at 316.33 least five hours of mentoring per week from a case management 316.34 mentor. A "case management mentor" means a qualified, 316.35 practicing case manager or case management supervisor who 316.36 teaches or advises and provides intensive training and clinical 317.1 supervision to one or more case manager associates. Mentoring 317.2 may occur while providing direct services to consumers in the 317.3 office or in the field and may be provided to individuals or 317.4 groups of case manager associates. At least two mentoring hours 317.5 per week must be individual and face-to-face. 317.6 (g) A case management supervisor must meet the criteria for 317.7 mental health professionals, as specified in section 245.462, 317.8 subdivision 18. 317.9 (h)Until June 30, 1999,An immigrant who does not have the 317.10 qualifications specified in this subdivision may provide case 317.11 management services to adult immigrants with serious and 317.12 persistent mental illness who are members of the same ethnic 317.13 group as the case manager if the person: (1) is currently 317.14 enrolled in and is actively pursuing credits toward the 317.15 completion of a bachelor's degree in one of the behavioral 317.16 sciences or a related field including, but not limited to, 317.17 social work, psychology, or nursing from an accredited college 317.18 or university; (2) completes 40 hours of training as specified 317.19 in this subdivision; and (3) receives clinical supervision at 317.20 least once a week until the requirements of this subdivision are 317.21 met. 317.22(b) The commissioner may approve waivers submitted by317.23counties to allow case managers without a bachelor's degree but317.24with 6,000 hours of supervised experience in the delivery of317.25services to adults with mental illness if the person:317.26(1) meets the qualifications for a mental health317.27practitioner in subdivision 26;317.28(2) has completed 40 hours of training approved by the317.29commissioner in case management skills and in the317.30characteristics and needs of adults with serious and persistent317.31mental illness; and317.32(3) demonstrates that the 6,000 hours of supervised317.33experience are in identifying functional needs of persons with317.34mental illness, coordinating assessment information and making317.35referrals to appropriate service providers, coordinating a317.36variety of services to support and treat persons with mental318.1illness, and monitoring to ensure appropriate provision of318.2services. The county board is responsible to verify that all318.3qualifications, including content of supervised experience, have318.4been met.318.5 Sec. 3. Minnesota Statutes 1998, section 245.462, 318.6 subdivision 17, is amended to read: 318.7 Subd. 17. [MENTAL HEALTH PRACTITIONER.] "Mental health 318.8 practitioner" means a person providing services to persons with 318.9 mental illness who is qualified in at least one of the following 318.10 ways: 318.11 (1) holds a bachelor's degree in one of the behavioral 318.12 sciences or related fields from an accredited college or 318.13 university and either: 318.14 (i) has at least 2,000 hours of supervised experience in 318.15 the delivery of services to persons with mental illness; or 318.16 (ii) is fluent in the non-English language of the ethnic 318.17 group to which over 50 percent of the practitioner's clients 318.18 belong, completes 40 hours of training in the delivery of 318.19 services to persons with mental illness, and is supervised by a 318.20 mental health professional at least once a week until 2,000 318.21 hours of supervised experience in delivering services to persons 318.22 with mental illness is obtained; 318.23 (2) has at least 6,000 hours of supervised experience in 318.24 the delivery of services to persons with mental illness; 318.25 (3) is a graduate student in one of the behavioral sciences 318.26 or related fields and is formally assigned by an accredited 318.27 college or university to an agency or facility for clinical 318.28 training; or 318.29 (4) holds a master's or other graduate degree in one of the 318.30 behavioral sciences or related fields from an accredited college 318.31 or university and has less than 4,000 hours post-master's 318.32 experience in the treatment of mental illness. 318.33 Sec. 4. Minnesota Statutes 1998, section 245.4711, 318.34 subdivision 1, is amended to read: 318.35 Subdivision 1. [AVAILABILITY OF CASE MANAGEMENT SERVICES.] 318.36 (a) By January 1, 1989, the county board shall provide case 319.1 management services for all adults with serious and persistent 319.2 mental illness who are residents of the county and who request 319.3 or consent to the services and to each adult for whom the court 319.4 appoints a case manager. Staffing ratios must be sufficient to 319.5 serve the needs of the clients. The case manager must meet the 319.6 requirements in section 245.462, subdivision 4. 319.7 (b) Case management services provided to adults with 319.8 serious and persistent mental illness eligible for medical 319.9 assistance must be billed to the medical assistance program 319.10 under sections 256B.02, subdivision 8, and 256B.0625. 319.11 (c) Case management services are eligible for reimbursement 319.12 under the medical assistance program. Costs associated with 319.13 mentoring, supervision, and continuing education may be included 319.14 in the reimbursement rate methodology used for case management 319.15 services under the medical assistance program. 319.16 Sec. 5. Minnesota Statutes 1998, section 245.4712, 319.17 subdivision 2, is amended to read: 319.18 Subd. 2. [DAY TREATMENT SERVICES PROVIDED.] (a) Day 319.19 treatment services must be developed as a part of the community 319.20 support services available to adults with serious and persistent 319.21 mental illness residing in the county. Adults may be required 319.22 to pay a fee according to section 245.481. Day treatment 319.23 services must be designed to: 319.24 (1) provide a structured environment for treatment; 319.25 (2) provide support for residing in the community; 319.26 (3) prevent placement in settings that are more intensive, 319.27 costly, or restrictive than necessary and appropriate to meet 319.28 client need; 319.29 (4) coordinate with or be offered in conjunction with a 319.30 local education agency's special education program; and 319.31 (5) operate on a continuous basis throughout the year. 319.32 (b) For purposes of complying with medical assistance 319.33 requirements, an adult day treatment program may choose among 319.34 the methods of clinical supervision specified in: 319.35 (1) Minnesota Rules, part 9505.0323, subpart 1, item F; 319.36 (2) Minnesota Rules, part 9505.0324, subpart 6, item F; or 320.1 (3) Minnesota Rules, part 9520.0800, subparts 2 to 6. 320.2 A day treatment program may demonstrate compliance with 320.3 these clinical supervision requirements by obtaining 320.4 certification from the commissioner under Minnesota Rules, parts 320.5 9520.0750 to 9520.0870, or by documenting in its own records 320.6 that it complies with one of the above methods. 320.7 (c) County boards may request a waiver from including day 320.8 treatment services if they can document that: 320.9 (1) an alternative plan of care exists through the county's 320.10 community support services for clients who would otherwise need 320.11 day treatment services; 320.12 (2) day treatment, if included, would be duplicative of 320.13 other components of the community support services; and 320.14 (3) county demographics and geography make the provision of 320.15 day treatment services cost ineffective and infeasible. 320.16 Sec. 6. Minnesota Statutes 1998, section 245.4871, 320.17 subdivision 4, is amended to read: 320.18 Subd. 4. [CASEMANAGERMANAGEMENT SERVICE PROVIDER.] (a) 320.19 "Casemanagermanagement service provider" meansan individuala 320.20 case manager or case manager associate employed by the county or 320.21 other entity authorized by the county board to provide case 320.22 management services specified in subdivision 3 for the child 320.23 with severe emotional disturbance and the child's family. A 320.24 case manager must have experience and training in working with 320.25 children. 320.26 (b) A case manager must: 320.27 (1) have at least a bachelor's degree in one of the 320.28 behavioral sciences or a related field including, but not 320.29 limited to, social work, psychology, or nursing from an 320.30 accredited college or university; 320.31 (2) have at least 2,000 hours of supervised experience in 320.32 the delivery of mental health services to children; 320.33 (3) have experience and training in identifying and 320.34 assessing a wide range of children's needs; and 320.35 (4) be knowledgeable about local community resources and 320.36 how to use those resources for the benefit of children and their 321.1 families. 321.2 (c) The case manager may be a member of any professional 321.3 discipline that is part of the local system of care for children 321.4 established by the county board. 321.5 (d) The case managermust meet in person with a mental321.6health professional at least once each month to obtain clinical321.7supervisionshall receive regular ongoing supervision totaling 321.8 38 hours per year, of which at least one hour per month must be 321.9 clinical supervision regarding individual service delivery with 321.10 a case management supervisor. The remainder may be provided by 321.11 a case manager with two years of experience. Group supervision 321.12 may not constitute more than one-half of the required 321.13 supervision hours. 321.14 (e) Case managers with a bachelor's degree but without 321.15 2,000 hours of supervised experience in the delivery of mental 321.16 health services to children with emotional disturbance must: 321.17 (1) begin 40 hours of training approved by the commissioner 321.18 of human services in case management skills and in the 321.19 characteristics and needs of children with severe emotional 321.20 disturbance before beginning to provide case management 321.21 services; and 321.22 (2) receive clinical supervision regarding individual 321.23 service delivery from a mental health professional at leastonce321.24 one hour each week until the requirement of 2,000 hours of 321.25 experience is met. 321.26 (f) Clinical supervision must be documented in the child's 321.27 record. When the case manager is not a mental health 321.28 professional, the county board must provide or contract for 321.29 needed clinical supervision. 321.30 (g) The county board must ensure that the case manager has 321.31 the freedom to access and coordinate the services within the 321.32 local system of care that are needed by the child. 321.33 (h) Case managers who have a bachelor's degree but are not 321.34 licensed, registered, or certified by a health-related licensing 321.35 board must receive 30 hours of continuing education and training 321.36 in severe emotional disturbance and mental health services 322.1 annually. 322.2 (i) Case managers without a bachelor's degree must meet one 322.3 of the requirements in clauses (1) to (3): 322.4 (1) have three or four years of experience as a case 322.5 manager associate; 322.6 (2) be a registered nurse without a bachelor's degree who 322.7 has a combination of specialized training in psychiatry and work 322.8 experience consisting of community interaction and involvement 322.9 or community discharge planning in a mental health setting 322.10 totaling three years; or 322.11 (3) be a person who qualified as a case manager under the 322.12 1998 department of human service federal waiver provision and 322.13 meets the continuing education and mentoring requirements in 322.14 this section. 322.15 (j) A case manager associate (CMA) must work under the 322.16 direction of a case manager or case management supervisor and 322.17 must be at least 21 years of age. A case manager associate must 322.18 also have a high school diploma or its equivalent and meet one 322.19 of the following criteria: 322.20 (1) have an associate of arts degree in one of the 322.21 behavioral sciences or human services; 322.22 (2) be a registered nurse without a bachelor's degree; 322.23 (3) have three years of life experience as a primary 322.24 caregiver to a child with serious emotional disturbance as 322.25 defined in section 245.4871, subdivision 6, within the previous 322.26 ten years; 322.27 (4) have 6,000 hours work experience as a nondegreed state 322.28 hospital technician; or 322.29 (5) be a mental health practitioner as defined in section 322.30 245.462, subdivision 17, clause (2). 322.31 Individuals meeting one of the criteria in clauses (1) to 322.32 (4) may qualify as a case manager after four years of supervised 322.33 work experience as a case manager associate. Individuals 322.34 meeting the criteria in clause (5) may qualify as a case manager 322.35 after three years of supervised experience as a case manager 322.36 associate. 323.1 Case manager associates must have 40 hours of preservice 323.2 training under paragraph (e), clause (1), and receive at least 323.3 40 hours of continuing education in severe emotional disturbance 323.4 and mental health service annually. Case manager associates 323.5 shall receive at least five hours of mentoring per week from a 323.6 case management mentor. A "case management mentor" means a 323.7 qualified, practicing case manager or case management supervisor 323.8 who teaches or advises and provides intensive training and 323.9 clinical supervision to one or more case manager associates. 323.10 Mentoring may occur while providing direct services to consumers 323.11 in the office or in the field and may be provided to individuals 323.12 or groups of case manager associates. At least two mentoring 323.13 hours per week must be individual and face-to-face. 323.14 (k) A case management supervisor must meet the criteria for 323.15 a mental health professional as specified in section 245.4871, 323.16 subdivision 27. 323.17 (l)Until June 30, 1999,An immigrant who does not have the 323.18 qualifications specified in this subdivision may provide case 323.19 management services to child immigrants with severe emotional 323.20 disturbance of the same ethnic group as the immigrant if the 323.21 person: 323.22 (1) is currently enrolled in and is actively pursuing 323.23 credits toward the completion of a bachelor's degree in one of 323.24 the behavioral sciences or related fields at an accredited 323.25 college or university; 323.26 (2) completes 40 hours of training as specified in this 323.27 subdivision; and 323.28 (3) receives clinical supervision at least once a week 323.29 until the requirements of obtaining a bachelor's degree and 323.30 2,000 hours of supervised experience are met. 323.31(i) The commissioner may approve waivers submitted by323.32counties to allow case managers without a bachelor's degree but323.33with 6,000 hours of supervised experience in the delivery of323.34services to children with severe emotional disturbance if the323.35person:323.36(1) meets the qualifications for a mental health324.1practitioner in subdivision 26;324.2(2) has completed 40 hours of training approved by the324.3commissioner in case management skills and in the324.4characteristics and needs of children with severe emotional324.5disturbance; and324.6(3) demonstrates that the 6,000 hours of supervised324.7experience are in identifying functional needs of children with324.8severe emotional disturbance, coordinating assessment324.9information and making referrals to appropriate service324.10providers, coordinating a variety of services to support and324.11treat children with severe emotional disturbance, and monitoring324.12to ensure appropriate provision of services. The county board324.13is responsible to verify that all qualifications, including324.14content of supervised experience, have been met.324.15 Sec. 7. Minnesota Statutes 1998, section 245.4871, 324.16 subdivision 26, is amended to read: 324.17 Subd. 26. [MENTAL HEALTH PRACTITIONER.] "Mental health 324.18 practitioner" means a person providing services to children with 324.19 emotional disturbances. A mental health practitioner must have 324.20 training and experience in working with children. A mental 324.21 health practitioner must be qualified in at least one of the 324.22 following ways: 324.23 (1) holds a bachelor's degree in one of the behavioral 324.24 sciences or related fields from an accredited college or 324.25 university and either: 324.26 (i) has at least 2,000 hours of supervised experience in 324.27 the delivery of mental health services to children with 324.28 emotional disturbances; or 324.29 (ii) is fluent in the non-English language of the ethnic 324.30 group to which over 50 percent of the practitioner's clients 324.31 belong, completes 40 hours of training in the delivery of 324.32 services to children with emotional disturbances, and is 324.33 supervised by a mental health professional at least once a week 324.34 until 2,000 hours of supervised experience in delivering mental 324.35 health services to children with emotional disturbances is 324.36 obtained; 325.1 (2) has at least 6,000 hours of supervised experience in 325.2 the delivery of mental health services to children with 325.3 emotional disturbances; 325.4 (3) is a graduate student in one of the behavioral sciences 325.5 or related fields and is formally assigned by an accredited 325.6 college or university to an agency or facility for clinical 325.7 training; or 325.8 (4) holds a master's or other graduate degree in one of the 325.9 behavioral sciences or related fields from an accredited college 325.10 or university and has less than 4,000 hours post-master's 325.11 experience in the treatment of emotional disturbance. 325.12 Sec. 8. Minnesota Statutes 1998, section 245.4881, 325.13 subdivision 1, is amended to read: 325.14 Subdivision 1. [AVAILABILITY OF CASE MANAGEMENT SERVICES.] 325.15 (a) By April 1, 1992, the county board shall provide case 325.16 management services for each child with severe emotional 325.17 disturbance who is a resident of the county and the child's 325.18 family who request or consent to the services. Staffing ratios 325.19 must be sufficient to serve the needs of the clients. The case 325.20 manager must meet the requirements in section 245.4871, 325.21 subdivision 4. 325.22 (b) Except as permitted by law and the commissioner under 325.23 demonstration projects, case management services provided to 325.24 children with severe emotional disturbance eligible for medical 325.25 assistance must be billed to the medical assistance program 325.26 under sections 256B.02, subdivision 8, and 256B.0625. 325.27 (c) Case management services are eligible for reimbursement 325.28 under the medical assistance program. Costs of mentoring, 325.29 supervision, and continuing education may be included in the 325.30 reimbursement rate methodology used for case management services 325.31 under the the medical assistance program. 325.32 Sec. 9. [245.99] [ADULT MENTAL ILLNESS CRISIS HOUSING 325.33 ASSISTANCE PROGRAM.] 325.34 Subdivision 1. [CREATION.] The adult mental illness crisis 325.35 housing assistance program is established in the department of 325.36 human services. 326.1 Subd. 2. [RENTAL ASSISTANCE.] The program shall pay up to 326.2 90 days of housing assistance for persons with a serious and 326.3 persistent mental illness who require inpatient or residential 326.4 care for stabilization. The commissioner of human services may 326.5 extend the length of assistance on a case-by-case basis. 326.6 Subd. 3. [ELIGIBILITY.] Housing assistance under this 326.7 section is available only to persons of low or moderate income 326.8 as determined by the commissioner. 326.9 Subd. 4. [ADMINISTRATION.] The commissioner may contract 326.10 with organizations or government units experienced in housing 326.11 assistance to operate the program under this section. 326.12 Sec. 10. [246.0136] [PLANNING FOR TRANSITION OF REGIONAL 326.13 TREATMENT CENTERS AND OTHER STATE-OPERATED SERVICES TO 326.14 ENTERPRISE ACTIVITIES.] 326.15 Subdivision 1. [PLANNING FOR ENTERPRISE ACTIVITIES.] The 326.16 commissioner of human services is directed to study and make 326.17 recommendations to the legislature on establishing enterprise 326.18 activities within state-operated services. Before implementing 326.19 an enterprise activity, the commissioner must obtain statutory 326.20 authorization for its implementation, except that the 326.21 commissioner has authority to implement enterprise activities 326.22 for adolescent services without statutory authorization. 326.23 Enterprise activities are defined as the range of services, 326.24 which are delivered by state employees, needed by people with 326.25 disabilities and are fully funded by public or private 326.26 third-party health insurance or other revenue sources available 326.27 to clients that provide reimbursement for the services provided. 326.28 Enterprise activities within state-operated services shall 326.29 specialize in caring for vulnerable people for whom no other 326.30 providers are available or for whom state-operated services may 326.31 be the provider selected by the payer. In subsequent biennia 326.32 after an enterprise activity is established within a 326.33 state-operated service, the base state appropriation for that 326.34 state-operated service shall be reduced proportionate to the 326.35 size of the enterprise activity. 326.36 Subd. 2. [REQUIRED COMPONENTS OF ANY PROPOSAL; 327.1 CONSIDERATIONS.] In any proposal for an enterprise activity 327.2 brought to the legislature by the commissioner, the commissioner 327.3 must demonstrate that there is public or private third-party 327.4 health insurance or other revenue available to the people 327.5 served, that the anticipated revenues to be collected will fully 327.6 fund the services, that there will be sufficient funds for cash 327.7 flow purposes, and that access to services by vulnerable 327.8 populations served by state-operated services will not be 327.9 limited by implementation of an enterprise activity. In 327.10 studying the feasibility of establishing an enterprise activity, 327.11 the commissioner must consider: 327.12 (1) creating public or private partnerships to facilitate 327.13 client access to needed services; 327.14 (2) administrative simplification and efficiencies 327.15 throughout the state-operated services system; 327.16 (3) creating a public group practice for state-operated 327.17 services medical staff to increase flexibility in meeting client 327.18 needs and to maximize third-party reimbursement; 327.19 (4) converting or disposing of buildings not utilized and 327.20 surplus lands; and 327.21 (5) exploring the efficiencies and benefits of establishing 327.22 state-operated services as an independent state agency. 327.23 Sec. 11. Minnesota Statutes 1998, section 246.18, 327.24 subdivision 6, is amended to read: 327.25 Subd. 6. [COLLECTIONS DEDICATED.]Except for327.26state-operated programs and services funded through a direct327.27appropriation from the legislature, money received within the327.28regional treatment center system for the following327.29state-operated services is dedicated to the commissioner for the327.30provision of those services:327.31(1) community-based residential and day training and327.32habilitation services for mentally retarded persons;327.33(2) community health clinic services;327.34(3) accredited hospital outpatient department services;327.35(4) certified rehabilitation agency and rehabilitation327.36hospital services; or328.1(5) community-based transitional support services for328.2adults with serious and persistent mental illness.Except for 328.3 state-operated programs funded through a direct appropriation 328.4 from the legislature, any state-operated program or service 328.5 established and operated as an enterprise activity, shall retain 328.6 the revenues earned in an interest-bearing account. 328.7 When the commissioner determines the intent to transition 328.8 from a direct appropriation to enterprise activity for which the 328.9 commissioner has authority, all collections for the targeted 328.10 state-operated service shall be retained and deposited into an 328.11 interest-bearing account. At the end of the fiscal year, prior 328.12 to establishing the enterprise activity, collections up to the 328.13 amount of the appropriation for the targeted service shall be 328.14 deposited to the general fund. All funds in excess of the 328.15 amount of the appropriation will be retained and used by the 328.16 enterprise activity for cash flow purposes. 328.17 These funds must be deposited in the state treasury in a 328.18 revolving account and funds in the revolving account are 328.19 appropriated to the commissioner to operate the services 328.20 authorized, and any unexpended balances do not cancel but are 328.21 available until spent. 328.22 Sec. 12. Minnesota Statutes 1998, section 253B.045, is 328.23 amended by adding a subdivision to read: 328.24 Subd. 5. [HEALTH PLAN COMPANY; DEFINITION.] For purposes 328.25 of this section, "health plan company" has the meaning given it 328.26 in section 62Q.01, subdivision 4, and also includes a 328.27 demonstration provider as defined in section 256B.69, 328.28 subdivision 2, paragraph (b), a county or group of counties 328.29 participating in county-based purchasing according to section 328.30 256B.692, and a children's mental health collaborative under 328.31 contract to provide medical assistance for individuals enrolled 328.32 in the prepaid medical assistance and MinnesotaCare programs 328.33 according to sections 245.493 to 245.496. 328.34 Sec. 13. Minnesota Statutes 1998, section 253B.045, is 328.35 amended by adding a subdivision to read: 328.36 Subd. 6. [COVERAGE.] A health plan company must provide 329.1 coverage, according to the terms of the policy, contract, or 329.2 certificate of coverage, for all medically necessary covered 329.3 services as determined by section 62Q.53 provided to an enrollee 329.4 that are ordered by the court under this chapter. 329.5 Sec. 14. Minnesota Statutes 1998, section 253B.07, 329.6 subdivision 1, is amended to read: 329.7 Subdivision 1. [PREPETITION SCREENING.] (a) Prior to 329.8 filing a petition for commitment of or early intervention for a 329.9 proposed patient, an interested person shall apply to the 329.10 designated agency in the county of the proposed patient's 329.11 residence or presence for conduct of a preliminary 329.12 investigation, except when the proposed patient has been 329.13 acquitted of a crime under section 611.026 and the county 329.14 attorney is required to file a petition for commitment. The 329.15 designated agency shall appoint a screening team to conduct an 329.16 investigation which shall include: 329.17 (i) a personal interview with the proposed patient and 329.18 other individuals who appear to have knowledge of the condition 329.19 of the proposed patient. If the proposed patient is not 329.20 interviewed, reasons must be documented; 329.21 (ii) identification and investigation of specific alleged 329.22 conduct which is the basis for application; 329.23 (iii) identification, exploration, and listing of the 329.24 reasons for rejecting or recommending alternatives to 329.25 involuntary placement;and329.26 (iv) in the case of a commitment based on mental illness, 329.27 the following information, if it is known or available: 329.28 information that may be relevant to the administration of 329.29 neuroleptic medications, if necessary, including the existence 329.30 of a declaration under section 253B.03, subdivision 6d, or a 329.31 health care directive under chapter 145C or a guardian, 329.32 conservator, proxy, or agent with authority to make health care 329.33 decisions for the proposed patient; information regarding the 329.34 capacity of the proposed patient to make decisions regarding 329.35 administration of neuroleptic medication; and whether the 329.36 proposed patient is likely to consent or refuse consent to 330.1 administration of the medication; and 330.2 (v) seeking input from the proposed patient's health plan 330.3 company to provide the court with information about services the 330.4 enrollee needs and the least restrictive alternatives. 330.5 (b) In conducting the investigation required by this 330.6 subdivision, the screening team shall have access to all 330.7 relevant medical records of proposed patients currently in 330.8 treatment facilities. Data collected pursuant to this clause 330.9 shall be considered private data on individuals. The 330.10 prepetition screening report is not admissible in any court 330.11 proceedings unrelated to the commitment proceedings. 330.12 (c) When the prepetition screening team recommends 330.13 commitment, a written report shall be sent to the county 330.14 attorney for the county in which the petition is to be filed. 330.15 (d) The prepetition screening team shall refuse to support 330.16 a petition if the investigation does not disclose evidence 330.17 sufficient to support commitment. Notice of the prepetition 330.18 screening team's decision shall be provided to the prospective 330.19 petitioner. 330.20 (e) If the interested person wishes to proceed with a 330.21 petition contrary to the recommendation of the prepetition 330.22 screening team, application may be made directly to the county 330.23 attorney, who may determine whether or not to proceed with the 330.24 petition. Notice of the county attorney's determination shall 330.25 be provided to the interested party. 330.26 (f) If the proposed patient has been acquitted of a crime 330.27 under section 611.026, the county attorney shall apply to the 330.28 designated county agency in the county in which the acquittal 330.29 took place for a preliminary investigation unless substantially 330.30 the same information relevant to the proposed patient's current 330.31 mental condition, as could be obtained by a preliminary 330.32 investigation, is part of the court record in the criminal 330.33 proceeding or is contained in the report of a mental examination 330.34 conducted in connection with the criminal proceeding. If a 330.35 court petitions for commitment pursuant to the rules of criminal 330.36 or juvenile procedure or a county attorney petitions pursuant to 331.1 acquittal of a criminal charge under section 611.026, the 331.2 prepetition investigation, if required by this section, shall be 331.3 completed within seven days after the filing of the petition. 331.4 Sec. 15. Minnesota Statutes 1998, section 253B.185, is 331.5 amended by adding a subdivision to read: 331.6 Subd. 5. [AFTERCARE AND CASE MANAGEMENT.] The state, in 331.7 collaboration with the designated agency, is responsible for 331.8 arranging and funding the aftercare and case management services 331.9 for persons under commitment as sexual psychopathic 331.10 personalities and sexually dangerous persons discharged after 331.11 July 1, 1999. 331.12 Sec. 16. Minnesota Statutes 1998, section 254A.07, 331.13 subdivision 2, is amended to read: 331.14 Subd. 2. The county boards may make grants for local 331.15 agency programs for prevention, care, and treatment of alcohol 331.16 and other drug abuse as developed and defined by the state 331.17 authority. Grants made for programs serving the American Indian 331.18 community shall take into account the guidelines established in 331.19 section 254A.03, subdivision 1, clause(j)(k). Grants may be 331.20 made for the cost of these local agency programs and services 331.21 whether provided directly by county boards or by other public 331.22 and private agencies and organizations, both profit and 331.23 nonprofit, and individuals, pursuant to contract. Nothing 331.24 herein shall prevent the state authority from entering into 331.25 contracts with and making grants to other state agencies for the 331.26 purpose of providing specific services and programs, except that 331.27 effective July 1, 2001, the state authority shall not make 331.28 grants using state funds for chemical dependency prevention 331.29 activities and for case management services for chronic 331.30 alcoholics. With the approval of the county board, the state 331.31 authority may make grants or contracts for research or 331.32 demonstration projects specific to needs within that county. 331.33 Sec. 17. Minnesota Statutes 1998, section 254B.01, is 331.34 amended by adding a subdivision to read: 331.35 Subd. 7. [ROOM AND BOARD RATE.] "Room and board rate" 331.36 means a rate set for shelter, fuel, food, utilities, household 332.1 supplies, and other costs necessary to provide room and board 332.2 for a person in need of chemical dependency services. 332.3 Sec. 18. Minnesota Statutes 1998, section 254B.02, 332.4 subdivision 3, is amended to read: 332.5 Subd. 3. [RESERVE ACCOUNT.] The commissioner shall 332.6 allocate money from the reserve account to counties that, during 332.7 the current fiscal year, have met or exceeded the base level of 332.8 expenditures for eligible chemical dependency services from 332.9 local money. The commissioner shall establish the base level 332.10 for fiscal year 1988 as the amount of local money used for 332.11 eligible services in calendar year 1986. In later years, the 332.12 base level must be increased in the same proportion as state 332.13 appropriations to implement Laws 1986, chapter 394, sections 8 332.14 to 20, are increased. The base level must be decreased if the 332.15 fund balance from which allocations are made under section 332.16 254B.02, subdivision 1, is decreased in later years. The local 332.17 match rate for the reserve account is the same rate as applied 332.18 to the initial allocation. Reserve account payments must not be 332.19 included when calculating the county adjustments made according 332.20 to subdivision 2. For counties providing medical assistance or 332.21 general assistance medical care through managed care plans on 332.22 January 1, 1996, the base year is fiscal year 1995. For 332.23 counties beginning provision of managed care after January 1, 332.24 1996, the base year is the most recent fiscal year before 332.25 enrollment in managed care begins. For counties providing 332.26 managed care, the base level will be increased or decreased in 332.27 proportion to changes in the fund balance from which allocations 332.28 are made under subdivision 2, but will be additionally increased 332.29 or decreased in proportion to the change in county adjusted 332.30 population made in subdivision 1, paragraphs (b) and 332.31 (c). Effective July 1, 1999, any funds deposited in the reserve 332.32 account funds in excess of those needed to meet obligations 332.33 incurred under this section and sections 254B.06 and 254B.09 332.34 shall cancel to the general fund. 332.35 Sec. 19. Minnesota Statutes 1998, section 254B.03, 332.36 subdivision 1, is amended to read: 333.1 Subdivision 1. [LOCAL AGENCY DUTIES.] (a) Every local 333.2 agency shall provide chemical dependency services to persons 333.3 residing within its jurisdiction who meet criteria established 333.4 by the commissioner for placement in a chemical dependency 333.5 residential or nonresidential treatment service. Chemical 333.6 dependency money must be administered by the local agencies 333.7 according to law and rules adopted by the commissioner under 333.8 sections 14.001 to 14.69. 333.9 (b) In order to contain costs, the county board shall, with 333.10 the approval of the commissioner of human services, select 333.11 eligible vendors of chemical dependency services who can provide 333.12 economical and appropriate treatment. Unless the local agency 333.13 is a social services department directly administered by a 333.14 county or human services board, the local agency shall not be an 333.15 eligible vendor under section 254B.05. The commissioner may 333.16 approve proposals from county boards to provide services in an 333.17 economical manner or to control utilization, with safeguards to 333.18 ensure that necessary services are provided. If a county 333.19 implements a demonstration or experimental medical services 333.20 funding plan, the commissioner shall transfer the money as 333.21 appropriate. If a county selects a vendor located in another 333.22 state, the county shall ensure that the vendor is in compliance 333.23 with the rules governing licensure of programs located in the 333.24 state. 333.25 (c) The calendar year 1998 rate for vendors may not 333.26 increase more than three percent above the rate approved in 333.27 effect on January 1, 1997. The calendar year 1999 rate for 333.28 vendors may not increase more than three percent above the rate 333.29 in effect on January 1, 1998. 333.30 (d) A culturally specific vendor that provides assessments 333.31 under a variance under Minnesota Rules, part 9530.6610, shall be 333.32 allowed to provide assessment services to persons not covered by 333.33 the variance. 333.34 (e) The rates for vendors of inpatient treatment services 333.35 for calendar year 2000 and calendar year 2001 may not increase 333.36 above the rate in effect on January 1, 1999. 334.1 (f) The calendar year 2000 rate for vendors of outpatient 334.2 treatment services may not increase more than two percent above 334.3 the rate in effect on January 1, 1999. The calendar year 2001 334.4 rate for vendors of outpatient treatment services may not 334.5 increase more than two percent above the rate in effect on 334.6 January 1, 2000. 334.7 Sec. 20. Minnesota Statutes 1998, section 254B.03, 334.8 subdivision 2, is amended to read: 334.9 Subd. 2. [CHEMICAL DEPENDENCYSERVICESFUND PAYMENT.] (a) 334.10 Payment from the chemical dependency fund is limited to payments 334.11 for services other than detoxification that, if located outside 334.12 of federally recognized tribal lands, would be required to be 334.13 licensed by the commissioner as a chemical dependency treatment 334.14 or rehabilitation program under sections 245A.01 to 245A.16, and 334.15 services other than detoxification provided in another state 334.16 that would be required to be licensed as a chemical dependency 334.17 program if the program were in the state. Out of state vendors 334.18 must also provide the commissioner with assurances that the 334.19 program complies substantially with state licensing requirements 334.20 and possesses all licenses and certifications required by the 334.21 host state to provide chemical dependency treatment.Hospitals334.22may apply for and receive licenses to be eligible vendors,334.23notwithstanding the provisions of section 245A.03.Except for 334.24 chemical dependency transitional rehabilitation programs, 334.25 vendors receiving payments from the chemical dependency fund 334.26 must not require copayment from a recipient of benefits for 334.27 services provided under this subdivision. Payment from the 334.28 chemical dependency fund shall be made for necessary room and 334.29 board costs provided by vendors certified according to section 334.30 254B.05, or in a community hospital licensed by the commissioner 334.31 of the department of health according to sections 144.50 to 334.32 144.56 to a client who is: 334.33 (1) determined to meet the criteria for placement in a 334.34 residential chemical dependency treatment program according to 334.35 rules adopted under section 254A.03, subdivision 3; and 334.36 (2) concurrently receiving a chemical dependency treatment 335.1 service in a program licensed by the commissioner and reimbursed 335.2 by the chemical dependency fund. 335.3 (b) A county may, from its own resources, provide chemical 335.4 dependency services for which state payments are not made. A 335.5 county may elect to use the same invoice procedures and obtain 335.6 the same state payment services as are used for chemical 335.7 dependency services for which state payments are made under this 335.8 section if county payments are made to the state in advance of 335.9 state payments to vendors. When a county uses the state system 335.10 for payment, the commissioner shall make monthly billings to the 335.11 county using the most recent available information to determine 335.12 the anticipated services for which payments will be made in the 335.13 coming month. Adjustment of any overestimate or underestimate 335.14 based on actual expenditures shall be made by the state agency 335.15 by adjusting the estimate for any succeeding month. 335.16 (c) The commissioner shall coordinate chemical dependency 335.17 services and determine whether there is a need for any proposed 335.18 expansion of chemical dependency treatment services. The 335.19 commissioner shall deny vendor certification to any provider 335.20 that has not received prior approval from the commissioner for 335.21 the creation of new programs or the expansion of existing 335.22 program capacity. The commissioner shall consider the 335.23 provider's capacity to obtain clients from outside the state 335.24 based on plans, agreements, and previous utilization history, 335.25 when determining the need for new treatment services. 335.26 Sec. 21. Minnesota Statutes 1998, section 254B.05, 335.27 subdivision 1, is amended to read: 335.28 Subdivision 1. [LICENSURE REQUIRED.] Programs licensed by 335.29 the commissioner are eligible vendors. Hospitals may apply for 335.30 and receive licenses to be eligible vendors, notwithstanding the 335.31 provisions of section 245A.03. American Indian programs located 335.32 on federally recognized tribal lands that provide chemical 335.33 dependency primary treatment, extended care, transitional 335.34 residence, or outpatient treatment services, and are licensed by 335.35 tribal government are eligible vendors. Detoxification programs 335.36 are not eligible vendors. Programs that are not licensed as a 336.1 chemical dependency residential or nonresidential treatment 336.2 program by the commissioner or by tribal government are not 336.3 eligible vendors. To be eligible for payment under the 336.4 Consolidated Chemical Dependency Treatment Fund, a vendor of a 336.5 chemical dependency service must participate in the Drug and 336.6 Alcohol Abuse Normative Evaluation System and the treatment 336.7 accountability plan. 336.8 Effective January 1, 2000, vendors of room and board are 336.9 eligible for chemical dependency fund payment if the vendor: 336.10 (1) is certified by the county or tribal governing body as 336.11 having rules prohibiting residents bringing chemicals into the 336.12 facility or using chemicals while residing in the facility and 336.13 provide consequences for infractions of those rules; 336.14 (2) has a current contract with a county or tribal 336.15 governing body; 336.16 (3) is determined to meet applicable health and safety 336.17 requirements; 336.18 (4) is not a jail or prison; and 336.19 (5) is not concurrently receiving funds under chapter 256I 336.20 for the recipient. 336.21 Sec. 22. Minnesota Statutes 1998, section 256.01, 336.22 subdivision 6, is amended to read: 336.23 Subd. 6. [ADVISORY TASK FORCES.] The commissioner may 336.24 appoint advisory task forces to provide consultation on any of 336.25 the programs under the commissioner's administration and 336.26 supervision. A task force shall expire and the compensation, 336.27 terms of office and removal of members shall be as provided in 336.28 section 15.059. Notwithstanding section 15.059, the 336.29 commissioner may pay a per diem of $35 to consumers and family 336.30 members whose participation is needed in legislatively 336.31 authorized state-level task forces, and whose participation on 336.32 the task force is not as a paid representative of any agency, 336.33 organization, or association. 336.34 Sec. 23. Laws 1995, chapter 207, article 8, section 41, as 336.35 amended by Laws 1997, chapter 203, article 7, section 25, is 336.36 amended to read: 337.1 Sec. 41. [245.4661] [PILOT PROJECTS TOTESTPROVIDE 337.2 ALTERNATIVES TO DELIVERY OF ADULT MENTAL HEALTH SERVICES.] 337.3 Subdivision 1. [AUTHORIZATION FOR PILOT PROJECTS.] The 337.4 commissioner of human services may approve pilot projects to 337.5testprovide alternatives to orthe enhancedenhance 337.6 coordination of the delivery of mental health services required 337.7 under the Minnesota Comprehensive Adult Mental Health Act, 337.8 Minnesota Statutes, sections 245.461 to 245.486. 337.9 Subd. 2. [PROGRAM DESIGN AND IMPLEMENTATION.] (a) The 337.10 pilot projects shall be established to design, plan, and improve 337.11 the mental health service delivery system for adults with 337.12 serious and persistent mental illness that would: 337.13 (1) provide an expanded array of services from which 337.14 clients can choose services appropriate to their needs; 337.15 (2) be based on purchasing strategies that improve access 337.16 and coordinate services without cost shifting; 337.17 (3) incorporate existing state facilities and resources 337.18 into the community mental health infrastructure through creative 337.19 partnerships with local vendors; and 337.20 (4) utilize existing categorical funding streams and 337.21 reimbursement sources in combined and creative ways, except 337.22 appropriations to regional treatment centers and all funds that 337.23 are attributable to the operation of state-operated services are 337.24 excluded unless appropriated specifically by the legislature for 337.25 a purpose consistent with this section. 337.26 (b) All projects funded by January 1, 1997, must complete 337.27 the planning phase and be operational by June 30, 1997; all 337.28 projects funded by January 1, 1998, must be operational by June 337.29 30, 1998. 337.30 Subd. 3. [PROGRAM EVALUATION.] Evaluation of each project 337.31 will be based on outcome evaluation criteria negotiated with 337.32 each project prior to implementation. 337.33 Subd. 4. [NOTICE OF PROJECT DISCONTINUATION.] Each project 337.34 may be discontinued for any reason by the project's managing 337.35 entity or the commissioner of human services, after 90 days' 337.36 written notice to the other party. 338.1 Subd. 5. [PLANNING FOR PILOT PROJECTS.] Each local plan 338.2 for a pilot project must be developed under the direction of the 338.3 county board, or multiple county boards acting jointly, as the 338.4 local mental health authority. The planning process for each 338.5 pilot shall include, but not be limited to, mental health 338.6 consumers, families, advocates, local mental health advisory 338.7 councils, local and state providers, representatives of state 338.8 and local public employee bargaining units, and the department 338.9 of human services. As part of the planning process, the county 338.10 board or boards shall designate a managing entity responsible 338.11 for receipt of funds and management of the pilot project. 338.12 Subd. 6. [DUTIES OF COMMISSIONER.] (a) For purposes of the 338.13 pilot projects, the commissioner shall facilitate integration of 338.14 funds or other resources as needed and requested by each 338.15 project. These resources may include: 338.16 (1) residential services funds administered under Minnesota 338.17 Rules, parts 9535.2000 to 9535.3000, in an amount to be 338.18 determined by mutual agreement between the project's managing 338.19 entity and the commissioner of human services after an 338.20 examination of the county's historical utilization of facilities 338.21 located both within and outside of the county and licensed under 338.22 Minnesota Rules, parts 9520.0500 to 9520.0690; 338.23 (2) community support services funds administered under 338.24 Minnesota Rules, parts 9535.1700 to 9535.1760; 338.25 (3) other mental health special project funds; 338.26 (4) medical assistance, general assistance medical care, 338.27 MinnesotaCare and group residential housing if requested by the 338.28 project's managing entity, and if the commissioner determines 338.29 this would be consistent with the state's overall health care 338.30 reform efforts; and 338.31 (5) regional treatment center nonfiscal resources to the 338.32 extent agreed to by the project's managing entity and the 338.33 regional treatment center. 338.34 (b) The commissioner shall consider the following criteria 338.35 in awarding start-up and implementation grants for the pilot 338.36 projects: 339.1 (1) the ability of the proposed projects to accomplish the 339.2 objectives described in subdivision 2; 339.3 (2) the size of the target population to be served; and 339.4 (3) geographical distribution. 339.5 (c) The commissioner shall review overall status of the 339.6 projects initiatives at least every two years and recommend any 339.7 legislative changes needed by January 15 of each odd-numbered 339.8 year. 339.9 (d) The commissioner may waive administrative rule 339.10 requirements which are incompatible with the implementation of 339.11 the pilot project. 339.12 (e) The commissioner may exempt the participating counties 339.13 from fiscal sanctions for noncompliance with requirements in 339.14 laws and rules which are incompatible with the implementation of 339.15 the pilot project. 339.16 (f) The commissioner may award grants to an entity 339.17 designated by a county board or group of county boards to pay 339.18 for start-up and implementation costs of the pilot project. 339.19 Subd. 7. [DUTIES OF COUNTY BOARD.] The county board, or 339.20 other entity which is approved to administer a pilot project, 339.21 shall: 339.22 (1) administer the project in a manner which is consistent 339.23 with the objectives described in subdivision 2 and the planning 339.24 process described in subdivision 5; 339.25 (2) assure that no one is denied services for which they 339.26 would otherwise be eligible; and 339.27 (3) provide the commissioner of human services with timely 339.28 and pertinent information through the following methods: 339.29 (i) submission of community social services act plans and 339.30 plan amendments; 339.31 (ii) submission of social services expenditure and grant 339.32 reconciliation reports, based on a coding format to be 339.33 determined by mutual agreement between the project's managing 339.34 entity and the commissioner; and 339.35 (iii) submission of data and participation in an evaluation 339.36 of the pilot projects, to be designed cooperatively by the 340.1 commissioner and the projects. 340.2 Subd. 8. [EXPIRATION.] This section expires June 30, 2002. 340.3 Sec. 24. [CONVEYANCE OF STATE LANDS TO COUNTY OF ISANTI.] 340.4 (a) Notwithstanding Minnesota Statutes, sections 94.09 to 340.5 94.16, the commissioner of human services, through the 340.6 commissioner of administration, may transfer to the county of 340.7 Isanti the lands described in paragraph (c), for no 340.8 consideration. The commissioner of human services and the 340.9 county may attach to the transfer conditions that they agree are 340.10 appropriate, including conditions that relate to water and sewer 340.11 service. The deed to convey the property must contain a clause 340.12 that the property shall revert to the state if the property 340.13 ceases to be used for a public purpose. 340.14 (b) The conveyance must be in a form approved by the 340.15 attorney general. 340.16 (c) The land that may be transferred consists of 21.9 340.17 acres, more or less, and is described as follows: 340.18 That part of the Southwest Quarter of the Southeast Quarter 340.19 and that part of Government Lot 4, both in Section 32, 340.20 Township 36, Range 23, Isanti County, Minnesota, described 340.21 jointly as follows: Commencing at the southwest corner of 340.22 the Southwest Quarter of the Southeast Quarter of Section 340.23 32; thence North 89 degrees 45 minutes 12 seconds East, 340.24 assumed bearing, along the south line of said SW 1/4 of SE 340.25 1/4, a distance of 609.48 feet; thence North 1 degree 30 340.26 minutes 30 seconds West, a distance of 149.17 feet to the 340.27 point of beginning of the parcel to be herein described; 340.28 thence continuing North 1 degrees 30 minutes 30 seconds 340.29 West, a distance of 1113.59 feet; thence South 89 degrees 340.30 59 minutes 36 seconds West, a distance of 496.41 feet; 340.31 thence southwesterly along a tangential curve concave to 340.32 the southeast, radius 318.10 feet, central angle 90 degrees 340.33 16 minutes 37 seconds, for an arc length of 501.21 feet; 340.34 thence South 0 degrees 17 minutes 01 seconds East, tangent 340.35 to said curve, for a distance of 86.59 feet; thence 340.36 southerly along a tangential curve concave to the west, 341.1 radius 398.10 feet, central angle 29 degrees 47 minutes 02 341.2 seconds, for an arc length of 206.94 feet; thence south 29 341.3 degrees 30 minutes 01 seconds West, tangent to said curve, 341.4 for a distance of 34.23 feet; thence southerly along a 341.5 tangential curve concave to the east, radius 318.10 feet, 341.6 central angle 29 degrees 49 minutes 32 seconds, for an arc 341.7 length of 165.59 feet; thence South 0 degrees 19 minutes 31 341.8 seconds East, tangent to said curve for a distance of 341.9 320.65 feet to the point of intersection with a line that 341.10 bears West (North 90 degrees 00 minutes West) from the 341.11 point of beginning; thence East (North 90 degrees 00 341.12 minutes East), a distance of 951.22 feet to the point of 341.13 beginning. 341.14 Subject to the existing City of Cambridge water main 341.15 easement. 341.16 (d) The county of Isanti may use the land for economic 341.17 development. Economic development is a public purpose within 341.18 the meaning of the term as used in Laws 1990, chapter 610, 341.19 article 1, section 12, subdivision 5, and sales or conveyances 341.20 to private parties shall be considered economic development. 341.21 Property conveyed by the state under this section shall not 341.22 revert to the state if it is conveyed or otherwise encumbered by 341.23 the county as part of the county economic development activity. 341.24 Sec. 25. [CONVEYANCE OF STATE LAND TO CITY OF CAMBRIDGE.] 341.25 (a) Notwithstanding Minnesota Statutes, sections 94.09 to 341.26 94.16, the commissioner of human services, through the 341.27 commissioner of administration, may transfer to the city of 341.28 Cambridge the lands described in paragraph (c), for no 341.29 consideration. The commissioner of human services and the city 341.30 may attach to the transfer conditions that they agree are 341.31 appropriate, including conditions that relate to water and sewer 341.32 service. The deed to convey the property must contain a clause 341.33 that the property shall revert to the state if the property 341.34 ceases to be used for a public purpose. 341.35 (b) The conveyance must be in a form approved by the 341.36 attorney general. 342.1 (c) Subject to the right-of-way for state trunk highway No. 342.2 293 and south Dellwood street and subject to other easements, 342.3 reservations, road or street right-of-ways, and restrictions of 342.4 record, if any, the land to be conveyed may include all or part 342.5 of any of the parcels described as follows: 342.6 (1) that part of the Northeast Quarter of the Northeast 342.7 Quarter of Section 5, Township 35, Range 23, Isanti County, 342.8 Minnesota, lying north of a line drawn parallel with and 50 342.9 feet north of the center line of State Highway No. 293, as 342.10 laid out and constructed and lying westerly of the 342.11 following described line: 342.12 Commencing at a point where the West line of the 342.13 right-of-way of the Great Northern Railway Company 342.14 (presently the Burlington Northern and Santa Fe Railway) 342.15 intersects the North line of said Section 5, said point now 342.16 being the intersection of the North line of said Section 5 342.17 with the center line of State Trunk Highway No. 65 as now 342.18 laid out and constructed (presently known as South Main 342.19 Street); thence on a bearing of West and along the North 342.20 line of said Section 5 a distance of 539.5 feet to the 342.21 point of beginning of the line to be herein described; 342.22 thence on a bearing of South, a distance of 451.75 feet to 342.23 the point of intersection with a line drawn parallel with 342.24 and distant 50 feet north of the center line of State 342.25 Highway No. 293, as laid out and constructed and there 342.26 terminating. Containing 1/4 acre, more or less. 342.27 (2) that part of the Northwest Quarter of the Southeast 342.28 Quarter and that part of Governments Lots 3 and 4, all in 342.29 Section 32, Township 36, Range 23, Isanti County, 342.30 Minnesota, described jointly as follows: 342.31 Commencing at the East quarter corner of Section 32, 342.32 Township 36, Range 23, Isanti County, Minnesota; thence 342.33 South 89 degrees 44 minutes 35 seconds West, assumed 342.34 bearing, along the east-west quarter line of said Section 342.35 32, a distance of 2251.43 feet; thence South 1 degree 48 342.36 minutes 40 seconds East, a distance of 344.47 feet to the 343.1 south line of Lot 30 of Auditor's Subdivision No. 9; thence 343.2 South 89 degrees 35 minutes 5 seconds West, along said 343.3 south line and the westerly projection thereof, a distance 343.4 of 740.00 feet to the point of beginning of the parcel to 343.5 be herein described; thence North 89 degrees 35 minutes, 05 343.6 seconds East, retracing the last described course, a 343.7 distance of 534.66 feet to the northwest corner of the 343.8 recorded plat of RIVERWOOD VILLAGE; thence South 2 degrees 343.9 40 minutes 50 seconds East, a distance of 338.38 feet, 343.10 along the westerly line of said RIVERWOOD VILLAGE to the 343.11 southwest corner of said RIVERWOOD VILLAGE; thence North 89 343.12 degrees 44 minutes 50 seconds East, along the south line of 343.13 said RIVERWOOD VILLAGE, a distance of 1074.56 feet; thence 343.14 South 3 degrees 35 minutes 15 seconds East, a distance of 343.15 258.66 feet; thence southwesterly along a tangential curve 343.16 concave to the northwest, radius 318.10 feet, central angle 343.17 93 degrees 34 minutes 51 seconds for an arc length of 343.18 519.56 feet; thence South 89 degrees 59 minutes 37 seconds 343.19 West tangent to said curve for a distance of 825.86 feet; 343.20 thence southwesterly along a tangential curve concave to 343.21 the southeast, radius 398.10 feet, central angle 70 degrees 343.22 55 minutes 13 seconds, for an arc length of 492.76 feet; 343.23 thence South 89 degrees 51 minutes 30 seconds West, not 343.24 tangent to the last described curve for a distance of 343.25 523.31 feet; thence South 1 degree 57 minutes 33 seconds 343.26 West, a distance of 29.59 feet; thence South 89 degrees 57 343.27 minutes 55 seconds West, a distance of 1020 feet, more or 343.28 less, to the easterly shoreline of the Rum River; thence 343.29 northerly along said easterly shoreline to the point of 343.30 intersection with a line that bears North 45 degrees 24 343.31 minutes 55 seconds West from the point of beginning; thence 343.32 South 45 degrees 24 minutes 55 seconds East, along said 343.33 line, a distance of 180 feet, more or less, to the point of 343.34 beginning. Containing 48 acres, more or less. 343.35 (3) that part of the Northwest Quarter of the Northeast 343.36 Quarter and that part of the Northeast Quarter of the 344.1 Northwest Quarter, both in Section 5, Township 35, Range 344.2 23, Isanti County, Minnesota, described jointly as follows: 344.3 Beginning at the northwest corner of the NW 1/4 of NE 1/4 344.4 of Section 5; thence North 89 degrees 45 minutes 12 seconds 344.5 East, assumed bearing, along the north line of said NW 1/4 344.6 of NE 1/4, a distance of 1321.82 feet to the northeast 344.7 corner of said NW 1/4 of NE 1/4 thence South 4 degrees 04 344.8 minutes 02 seconds West, along the east line of said NW 1/4 344.9 of NE 1/4, a distance of 452.83 feet; thence South 89 344.10 degrees 45 minutes 02 seconds West, a distance of 1393.6 344.11 feet; thence northwesterly, along a non-tangential curve 344.12 concave to the northeast, radius 318.17 feet, central angle 344.13 75 degrees 28 minutes 03 seconds, for an arc length of 344.14 419.08 feet (the chord of said curve bears North 38 degrees 344.15 03 minutes 32 seconds West and has a length of 389.44 344.16 feet); thence North 0 degrees 19 minutes 31 seconds West, 344.17 tangent to said curve, for a distance of 142.65 feet to the 344.18 north line of the NE 1/4 of NW 1/4 of said Section 5; 344.19 thence North 89 degrees 32 minutes 15 seconds East, along 344.20 said north line, a distance of 344.81 feet to the point of 344.21 beginning. Containing 16 acres, more or less. 344.22 (4) that part of the Southwest Quarter of the Southeast 344.23 Quarter, that part of the Northwest Quarter of the 344.24 Southeast Quarter and that part of Government Lot 4, all in 344.25 Section 32, Township 36, Range 23, Isanti County, 344.26 Minnesota, described jointly as follows: 344.27 Beginning at the southwest corner of the SW 1/4 of SE 1/4 344.28 of Section 32; thence North 89 degrees 45 minutes 12 344.29 seconds East, assumed bearing, along the south line of said 344.30 SW 1/4 of SE 1/4, a distance of 1321.82 feet to the 344.31 southeast corner of said SW 1/4 of SE 1/4 thence North 2 344.32 degrees 40 minutes 49 seconds West, along the east line of 344.33 said SW 1/4 of SE 1/4 and along the east line of the NW 1/4 344.34 of SE 1/4, a distance of 1465.32 feet; thence southwesterly 344.35 along a non-tangential curve concave to the northwest, 344.36 radius 398.10 feet, central angle 60 degrees 52 minutes 54 345.1 seconds, for an arc length of 423.02 feet (said curve has a 345.2 chord that bears South 59 degrees 33 minutes 09 seconds 345.3 West and a chord length of 403.40 feet); thence South 89 345.4 degrees 59 minutes 37 seconds West, tangent to said curve, 345.5 for a distance of 825.68 feet; thence southwesterly along a 345.6 tangential curve concave to the southeast, radius 318.10 345.7 feet, central angle 90 degrees 16 minutes 37 seconds, for 345.8 an arc length of 501.21 feet; thence South 0 degrees 17 345.9 minutes 01 seconds East, tangent to said curve, for a 345.10 distance of 86.59 feet; thence southerly along a tangential 345.11 curve concave to the West, radius 398.10 feet, central 345.12 angle 29 degrees 47 minutes 02 seconds, for an arc length 345.13 of 206.94 feet; thence South 29 degrees 30 minutes 01 345.14 seconds West tangent to said curve, for a distance of 34.23 345.15 feet; thence southerly along a tangential curve concave to 345.16 the east, radius 318.20 feet, central angle 29 degrees 49 345.17 minutes 32 seconds for an arc length of 165.59 feet; thence 345.18 South 0 degrees 19 minutes 31 seconds East, tangent to said 345.19 curve, for a distance of 475.17 feet to the south line of 345.20 Government Lot 4, Section 32; thence North 89 degrees 32 345.21 minutes 15 seconds East, along said south line, a distance 345.22 of 344.81 feet to the point of beginning. Containing 44.9 345.23 acres, more or less. 345.24 EXCEPTING THEREFROM that parcel described on Quit Claim 345.25 Deed from the State of Minnesota to Wilfred R. and June E. 345.26 Norman, filed in Book 92 of Deeds, page 647, in the office 345.27 of the County Recorder, Isanti County, Minnesota. 345.28 ALSO EXCEPTING THEREFROM that parcel described on Quit 345.29 Claim Deed from the State of Minnesota to Frank C. Brody 345.30 and Lorraine D.S. Brody, filed in Book 102 of Deeds, page 345.31 232, in the office of the County Recorder, Isanti County, 345.32 Minnesota. 345.33 (d) The city of Cambridge may use the land for economic 345.34 development. Economic development is a public purpose within 345.35 the meaning of the term as used in Laws 1990, chapter 610, 345.36 article 1, section 12, subdivision 5, and sales or conveyances 346.1 to private parties shall be considered economic development. 346.2 Property conveyed by the state under this section shall not 346.3 revert to the state if it is conveyed or otherwise encumbered by 346.4 the city as a part of the city economic development activity. 346.5 Sec. 26. (CONVEYANCE OF CITY LAND TO STATE OF MINNESOTA.) 346.6 (a) The commissioner of administration may accept all, or 346.7 any part of, the land described in paragraph (d) from the city 346.8 of Cambridge, after the city council passes a resolution which 346.9 declares the property is surplus to its needs. 346.10 (b) The conveyance shall be in a form approved by the 346.11 attorney general. 346.12 (c) The conveyance may be subject to a scenic easement, as 346.13 defined in Minnesota Statutes, section 103F.311, subdivision 6. 346.14 The easement shall be under the custodial control of the 346.15 commissioner of natural resources and only required on the 346.16 portion of conveyed land that is designated for inclusion in the 346.17 wild and scenic river system under Minnesota Statutes, section 346.18 103F.325. The scenic easement shall allow for continued use of 346.19 any existing structures located within the easement and for 346.20 development of walking paths or trails within the easement. 346.21 (d) Subject to the right-of-way for state trunk highway No. 346.22 293, and subject to other easements, reservations, street 346.23 right-of-ways, and restrictions of record, if any, the land to 346.24 be conveyed may include all, or part of, the parcel described as 346.25 follows: 346.26 That part of Government Lot 4 and that part of the 346.27 Northeast Quarter of the Northwest Quarter, all in Section 346.28 5, Township 35, Range 23, Isanti County, Minnesota, 346.29 described jointly as follows: Commencing at the Northeast 346.30 corner of the Northwest Quarter of Section 5, thence South 346.31 89 degrees 47 minutes 10 seconds West, assumed bearing 346.32 along the north line of the Northwest Quarter of Section 5, 346.33 a distance of 656.00 feet to the point of beginning of the 346.34 parcel to be herein described, thence South 00 degrees 03 346.35 minutes 35 seconds East, a distance of 350.00 feet, thence 346.36 South 89 degrees 47 minutes 10 seconds West, parallel with 347.1 the north line of said Northwest Quarter of Section 5 to 347.2 the easterly shoreline of the Rum River, thence 347.3 northeasterly along said easterly shoreline to the north 347.4 line of the Northwest Quarter of Section 5, thence North 89 347.5 degrees 47 minutes 10 seconds East, along said north line 347.6 to the point of beginning. 347.7 Sec. 27. [REPORT TO LEGISLATURE ON CHEMICAL DEPENDENCY 347.8 GRANT PROGRAMS.] 347.9 The commissioner of human services shall report and provide 347.10 detailed outcome measures to the legislature, by January 1, 347.11 2001, on chemical dependency grant activities for: 347.12 (1) chemical dependency prevention, education, community 347.13 awareness, and treatment services to Native Americans under 347.14 Minnesota Statutes, sections 254A.03, subdivision 2, and 347.15 254A.031; 347.16 (2) chemical dependency case management services for 347.17 chronic alcoholics under Minnesota Statutes, section 254A.07, 347.18 subdivision 2; 347.19 (3) chemical dependency prevention activities under 347.20 Minnesota Statutes, section 254A.07, subdivision 2; and 347.21 (4) chemical dependency treatment services to pregnant 347.22 women and women with children under Minnesota Statutes, section 347.23 254A.17, subdivision 1a. 347.24 The report must contain sufficient information to assist 347.25 the legislature in determining whether these grant activities 347.26 are a cost-effective use of state funds and whether these grant 347.27 activities should continue or be repealed. 347.28 Sec. 28. [REPORT TO LEGISLATURE ON ESTABLISHING ENTERPRISE 347.29 ACTIVITIES WITHIN STATE-OPERATED SERVICES.] 347.30 The commissioner of human services shall report and make 347.31 recommendations to the legislature, by December 15, 1999, on 347.32 establishing enterprise activities within state-operated 347.33 services, under Minnesota Statutes, section 246.0136, and their 347.34 status. 347.35 Sec. 29. [REPEALER.] 347.36 (a) Minnesota Statutes 1998, section 254A.145, is repealed. 348.1 (b) Minnesota Statutes 1998, sections 462A.208; and 348.2 462A.21, subdivision 19, are repealed. 348.3 (c) Minnesota Statutes, sections 254A.03, subdivision 2; 348.4 254A.031; and 254A.17, subdivision 1a, are repealed June 30, 348.5 2001. 348.6 ARTICLE 6 348.7 MFIP AND ADULT SUPPORTS 348.8 Section 1. Minnesota Statutes 1998, section 256D.06, 348.9 subdivision 5, is amended to read: 348.10 Subd. 5. Any applicant, otherwise eligible for general 348.11 assistance and possibly eligible for maintenance benefits from 348.12 any other source shall (a) make application for those benefits 348.13 within 30 days of the general assistance application; and (b) 348.14 execute an interim assistance authorization agreement on a form 348.15 as directed by the commissioner. The commissioner shall review 348.16 a denial of an application for other maintenance benefits and 348.17 may require a recipient of general assistance to file an appeal 348.18 of the denial if appropriate. If found eligible for benefits 348.19 from other sources, and a payment received from another source 348.20 relates to the period during which general assistance was also 348.21 being received, the recipient shall be required to reimburse the 348.22 county agency for the interim assistance paid. Reimbursement 348.23 shall not exceed the amount of general assistance paid during 348.24 the time period to which the other maintenance benefits apply 348.25 and shall not exceed the state standard applicable to that time 348.26 period. The commissioner shall adopt rules authorizing county 348.27 agencies or other client representatives to retain from the 348.28 amount recovered under an interim assistance agreement 25 348.29 percent plus actual reasonable fees, costs, and disbursements of 348.30 appeals and litigation, of providing special assistance to the 348.31 recipient in processing the recipient's claim for maintenance 348.32 benefits from another source. The money retained under this 348.33 section shall be from the state share of the recovery. The 348.34 commissioner or the county agency may contract with qualified 348.35 persons to provide the special assistance. The rules adopted by 348.36 the commissioner shall include the methods by which county 349.1 agencies shall identify, refer, and assist recipients who may be 349.2 eligible for benefits under federal programs for the disabled. 349.3 This subdivision does not require repayment of per diem payments 349.4 made to shelters for battered women pursuant to section 256D.05, 349.5 subdivision 3. 349.6 Sec. 2. Minnesota Statutes 1998, section 256J.02, 349.7 subdivision 2, is amended to read: 349.8 Subd. 2. [USE OF MONEY.] State money appropriated for 349.9 purposes of this section and TANF block grant money must be used 349.10 for: 349.11 (1) financial assistance to or on behalf of any minor child 349.12 who is a resident of this state under section 256J.12; 349.13 (2) employment and training services under this chapter or 349.14 chapter 256K; 349.15 (3) emergency financial assistance and services under 349.16 section 256J.48; 349.17 (4) diversionary assistance under section 256J.47;and349.18 (5) family assets for independence accounts under Laws 349.19 1998, First Special Session chapter 1, article 1; 349.20 (6) the pathways program under section 116L.04, subdivision 349.21 1a; 349.22 (7) welfare-to-work extended employment services for MFIP 349.23 participants with severe impairment to employment as defined in 349.24 section 268A.15, subdivision 1a; 349.25 (8) the family homeless prevention and assistance program 349.26 under section 462A.204; 349.27 (9) the rent assistance for family stabilization 349.28 demonstration project under section 462A.205; and 349.29 (10) program administration under this chapter. 349.30 Sec. 3. Minnesota Statutes 1998, section 256J.08, 349.31 subdivision 11, is amended to read: 349.32 Subd. 11. [CAREGIVER.] "Caregiver" means a minor child's 349.33 natural or adoptive parent or parents and stepparent who live in 349.34 the home with the minor child. For purposes of determining 349.35 eligibility for this program, caregiver also means any of the 349.36 following individuals, if adults, who live with and provide care 350.1 and support to a minor child when the minor child's natural or 350.2 adoptive parent or parents or stepparents do not reside in the 350.3 same home: legal custodian or guardian, grandfather, 350.4 grandmother, brother, sister, half-brother, half-sister, 350.5 stepbrother, stepsister, uncle, aunt, first cousin or first 350.6 cousin once removed, nephew, niece, person of preceding 350.7 generation as denoted by prefixes of "great," "great-great," or 350.8 "great-great-great," or a spouse of any person named in the 350.9 above groups even after the marriage ends by death or divorce. 350.10 Sec. 4. Minnesota Statutes 1998, section 256J.08, is 350.11 amended by adding a subdivision to read: 350.12 Subd. 28a. [ENCUMBRANCE.] "Encumbrance" means a legal 350.13 claim against real or personal property that is payable upon the 350.14 sale of that property. 350.15 Sec. 5. Minnesota Statutes 1998, section 256J.08, is 350.16 amended by adding a subdivision to read: 350.17 Subd. 55a. [MFIP STANDARD OF NEED.] "MFIP standard of need" 350.18 means the appropriate standard used to determine MFIP benefit 350.19 payments for the MFIP unit and applies to: 350.20 (1) the transitional standard, sections 256J.08, 350.21 subdivision 85, and 256J.24, subdivision 5; 350.22 (2) the shared household standard, section 256J.24, 350.23 subdivision 9; and 350.24 (3) the interstate transition standard, section 256J.43. 350.25 Sec. 6. Minnesota Statutes 1998, section 256J.08, 350.26 subdivision 65, is amended to read: 350.27 Subd. 65. [PARTICIPANT.] "Participant" means a person who 350.28 is currently receiving cash assistanceandor the food portion 350.29 available throughMFIP-SMFIP as funded by TANF and the food 350.30 stamp program. A person who fails to withdraw or access 350.31 electronically any portion of the person's cash and food 350.32 assistance payment by the end of the payment month, who makes a 350.33 written request for closure before the first of a payment month 350.34 and repays cash and food assistance electronically issued for 350.35 that payment month within that payment month, or who returns any 350.36 uncashed assistance check and food coupons and withdraws from 351.1 the program is not a participant. A person who withdraws a cash 351.2 or food assistance payment by electronic transfer or receives 351.3 and cashesa cashan MFIP assistance check or food coupons and 351.4 is subsequently determined to be ineligible for assistance for 351.5 that period of time is a participant, regardless whether that 351.6 assistance is repaid. The term "participant" includes the 351.7 caregiver relative and the minor child whose needs are included 351.8 in the assistance payment. A person in an assistance unit who 351.9 does not receive a cash and food assistance payment because the 351.10 person has been suspended fromMFIP-S or because the person's351.11need falls below the $10 minimum payment levelMFIP is a 351.12 participant. 351.13 Sec. 7. Minnesota Statutes 1998, section 256J.08, 351.14 subdivision 82, is amended to read: 351.15 Subd. 82. [SANCTION.] "Sanction" means the reduction of a 351.16 family's assistance payment by a specified percentage of 351.17 theapplicable transitionalMFIP standard of need because: a 351.18 nonexempt participant fails to comply with the requirements of 351.19 sections 256J.52 to 256J.55; a parental caregiver fails without 351.20 good cause to cooperate with the child support enforcement 351.21 requirements; or a participant fails to comply with the 351.22 insurance, tort liability, or other requirements of this chapter. 351.23 Sec. 8. Minnesota Statutes 1998, section 256J.08, 351.24 subdivision 86a, is amended to read: 351.25 Subd. 86a. [UNRELATED MEMBER.] "Unrelated member" means an 351.26 individual in the household who does not meet the definition of 351.27 an eligible caregiver, but does not include an individual who351.28provides child care to a child in the assistance unit. 351.29 Sec. 9. Minnesota Statutes 1998, section 256J.11, 351.30 subdivision 2, is amended to read: 351.31 Subd. 2. [NONCITIZENS; FOOD PORTION.](a) For the period351.32September 1, 1997, to October 31, 1997, noncitizens who do not351.33meet one of the exemptions in section 412 of the Personal351.34Responsibility and Work Opportunity Reconciliation Act of 1996,351.35but were residing in this state as of July 1, 1997, are eligible351.36for the 6/10 of the average value of food stamps for the same352.1family size and composition until MFIP-S is operative in the352.2noncitizen's county of financial responsibility and thereafter,352.3the 6/10 of the food portion of MFIP-S. However, federal food352.4stamp dollars cannot be used to fund the food portion of MFIP-S352.5benefits for an individual under this subdivision.352.6(b) For the period November 1, 1997, to June 30, 1999,352.7noncitizens who do not meet one of the exemptions in section 412352.8of the Personal Responsibility and Work Opportunity352.9Reconciliation Act of 1996 , and are receiving cash assistance352.10under the AFDC, family general assistance, MFIP or MFIP-S352.11programs are eligible for the average value of food stamps for352.12the same family size and composition until MFIP-S is operative352.13in the noncitizen's county of financial responsibility and352.14thereafter, the food portion of MFIP-S. However, federal food352.15stamp dollars cannot be used to fund the food portion of MFIP-S352.16benefits for an individual under this subdivisionState dollars 352.17 shall fund the food portion of a noncitizen's MFIP benefits when 352.18 federal food stamp dollars cannot be used to fund those 352.19 benefits. The assistance provided under this subdivision, which 352.20 is designated as a supplement to replace lost benefits under the 352.21 federal food stamp program, must be disregarded as income in all 352.22 programs that do not count food stamps as income where the 352.23 commissioner has the authority to make the income disregard 352.24 determination for the program. 352.25(c) The commissioner shall submit a state plan to the352.26secretary of agriculture to allow the commissioner to purchase352.27federal Food Stamp Program benefits in an amount equal to the352.28MFIP-S food portion for each legal noncitizen receiving MFIP-S352.29assistance who is ineligible to participate in the federal Food352.30Stamp Program solely due to the provisions of section 402 or 403352.31of Public Law Number 104-193, as authorized by Title VII of the352.321997 Emergency Supplemental Appropriations Act, Public Law352.33Number 105-18. The commissioner shall enter into a contract as352.34necessary with the secretary to use the existing federal Food352.35Stamp Program benefits delivery system for the purposes of352.36administering the food portion of MFIP-S under this subdivision.353.1 Sec. 10. Minnesota Statutes 1998, section 256J.11, 353.2 subdivision 3, is amended to read: 353.3 Subd. 3. [BENEFITS FUNDED WITH STATE MONEY.] Legal adult 353.4 noncitizens who have resided in the country for four years or 353.5 more as a lawful permanent resident, whose benefits are funded 353.6 entirely with state money, and who are under 70 years of age, 353.7 must, as a condition of eligibility: 353.8 (1) be enrolled in a literacy class, English as a second 353.9 language class, or a citizen class; 353.10 (2) be applying for admission to a literacy class, English 353.11 as a second language class, and is on a waiting list; 353.12 (3) be in the process of applying for a waiver from the 353.13 Immigration and Naturalization Service of the English language 353.14 or civics requirements of the citizenship test; 353.15 (4) have submitted an application for citizenship to the 353.16 Immigration and Naturalization Service and is waiting for a 353.17 testing date or a subsequent swearing in ceremony; or 353.18 (5) have been denied citizenship due to a failure to pass 353.19 the test after two attempts or because of an inability to 353.20 understand the rights and responsibilities of becoming a United 353.21 States citizen, as documented by the Immigration and 353.22 Naturalization Service or the county. 353.23 If the county social service agency determines that a legal 353.24 noncitizen subject to the requirements of this subdivision will 353.25 require more than one year of English language training, then 353.26 the requirements of clause (1) or (2) shall be imposed after the 353.27 legal noncitizen has resided in the country for three years. 353.28 Individuals who reside in a facility licensed under chapter 353.29 144A, 144D, 245A, or 256I are exempt from the requirements of 353.30 this subdivision. 353.31 Sec. 11. Minnesota Statutes 1998, section 256J.12, 353.32 subdivision 1a, is amended to read: 353.33 Subd. 1a. [30-DAY RESIDENCY REQUIREMENT.] An assistance 353.34 unit is considered to have established residency in this state 353.35 only when a child or caregiver has resided in this state for at 353.36 least 30 consecutive days with the intention of making the 354.1 person's home here and not for any temporary purpose. The birth 354.2 of a child in Minnesota to a member of the assistance unit does 354.3 not automatically establish the residency in this state under 354.4 this subdivision of the other members of the assistance unit. 354.5 Time spent in a shelter for battered women shall count toward 354.6 satisfying the 30-day residency requirement. 354.7 Sec. 12. Minnesota Statutes 1998, section 256J.12, 354.8 subdivision 2, is amended to read: 354.9 Subd. 2. [EXCEPTIONS.] (a) A county shall waive the 30-day 354.10 residency requirement where unusual hardship would result from 354.11 denial of assistance. 354.12 (b) For purposes of this section, unusual hardship means an 354.13 assistance unit: 354.14 (1) is without alternative shelter; or 354.15 (2) is without available resources for food. 354.16 (c) For purposes of this subdivision, the following 354.17 definitions apply (1) "metropolitan statistical area" is as 354.18 defined by the U.S. Census Bureau; (2) "alternative shelter" 354.19 includes any shelter that is located within the metropolitan 354.20 statistical area containing the county and for which the family 354.21 is eligible, provided the assistance unit does not have to 354.22 travel more than 20 miles to reach the shelter and has access to 354.23 transportation to the shelter. Clause (2) does not apply to 354.24 counties in the Minneapolis-St. Paul metropolitan statistical 354.25 area. 354.26 (d) Applicants are considered to meet the residency 354.27 requirement under subdivision 1a if they once resided in 354.28 Minnesota and: 354.29 (1) joined the United States armed services, returned to 354.30 Minnesota within 30 days of leaving the armed services, and 354.31 intend to remain in Minnesota; or 354.32 (2) left to attend school in another state, paid 354.33 nonresident tuition or Minnesota tuition rates under a 354.34 reciprocity agreement, and returned to Minnesota within 30 days 354.35 of graduation with the intent to remain in Minnesota. 354.36 (e) The 30-day residence requirement is met when: 355.1 (1) a minor child or a minor caregiver moves from another 355.2 state to the residence of a relative caregiver; and 355.3(2) the minor caregiver applies for and receives family355.4cash assistance;355.5(3) the relative caregiver chooses not to be part of the355.6MFIP-S assistance unit; and355.7(4) the relative caregiver has resided in Minnesota for at355.8least 30 days prior to the date the assistance unit applies for355.9cash assistance.355.10(f) Ineligible mandatory unit members who have resided in355.11Minnesota for 12 months immediately before the unit's date of355.12application establish the other assistance unit members'355.13eligibility for the MFIP-S transitional standard.355.14 (2) the relative caregiver has resided in Minnesota for at 355.15 least 30 consecutive days and: 355.16 (i) the minor caregiver applies for and receives MFIP; or 355.17 (ii) the relative caregiver applies for assistance for the 355.18 minor child but does not choose to be a member of the MFIP 355.19 assistance unit. 355.20 Sec. 13. Minnesota Statutes 1998, section 256J.14, is 355.21 amended to read: 355.22 256J.14 [ELIGIBILITY FOR PARENTING OR PREGNANT MINORS.] 355.23 (a) The definitions in this paragraph only apply to this 355.24 subdivision. 355.25 (1) "Household of a parent, legal guardian, or other adult 355.26 relative" means the place of residence of: 355.27 (i) a natural or adoptive parent; 355.28 (ii) a legal guardian according to appointment or 355.29 acceptance under section 260.242, 525.615, or 525.6165, and 355.30 related laws; 355.31 (iii) a caregiver as defined in section 256J.08, 355.32 subdivision 11; or 355.33 (iv) an appropriate adult relative designated by a county 355.34 agency. 355.35 (2) "Adult-supervised supportive living arrangement" means 355.36 a private family setting which assumes responsibility for the 356.1 care and control of the minor parent and minor child, or other 356.2 living arrangement, not including a public institution, licensed 356.3 by the commissioner of human services which ensures that the 356.4 minor parent receives adult supervision and supportive services, 356.5 such as counseling, guidance, independent living skills 356.6 training, or supervision. 356.7 (b) A minor parent and the minor child who is in the care 356.8 of the minor parent must reside in the household of a parent, 356.9 legal guardian, other adult relative, or in an adult-supervised 356.10 supportive living arrangement in order to receiveMFIP-SMFIP 356.11 unless: 356.12 (1) the minor parent has no living parent, other adult 356.13 relative, or legal guardian whose whereabouts is known; 356.14 (2) no living parent, other adult relative, or legal 356.15 guardian of the minor parent allows the minor parent to live in 356.16 the parent's, other adult relative's, or legal guardian's home; 356.17 (3) the minor parent lived apart from the minor parent's 356.18 own parent or legal guardian for a period of at least one year 356.19 before either the birth of the minor child or the minor parent's 356.20 application forMFIP-SMFIP; 356.21 (4) the physical or emotional health or safety of the minor 356.22 parent or minor child would be jeopardized if the minor parent 356.23 and the minor child resided in the same residence with the minor 356.24 parent's parent, other adult relative, or legal guardian; or 356.25 (5) an adult supervised supportive living arrangement is 356.26 not available for the minor parent and child in the county in 356.27 which the minor parent and child currently reside. If an adult 356.28 supervised supportive living arrangement becomes available 356.29 within the county, the minor parent and child must reside in 356.30 that arrangement. 356.31 (c) The county agency shall inform minor applicantsmust be356.32informedboth orally and in writing about the eligibility 356.33 requirementsand, their rights and obligations under theMFIP-S356.34 MFIP program, and any other applicable orientation information. 356.35 The county must advise the minor of the possible exemptions and 356.36 specifically ask whether one or more of these exemptions is 357.1 applicable. If the minor alleges one or more of these 357.2 exemptions, then the county must assist the minor in obtaining 357.3 the necessary verifications to determine whether or not these 357.4 exemptions apply. 357.5 (d) If the county worker has reason to suspect that the 357.6 physical or emotional health or safety of the minor parent or 357.7 minor child would be jeopardized if they resided with the minor 357.8 parent's parent, other adult relative, or legal guardian, then 357.9 the county worker must make a referral to child protective 357.10 services to determine if paragraph (b), clause (4), applies. A 357.11 new determination by the county worker is not necessary if one 357.12 has been made within the last six months, unless there has been 357.13 a significant change in circumstances which justifies a new 357.14 referral and determination. 357.15 (e) If a minor parent is not living with a parent, legal 357.16 guardian, or other adult relative due to paragraph (b), clause 357.17 (1), (2), or (4), the minor parent must reside, when possible, 357.18 in a living arrangement that meets the standards of paragraph 357.19 (a), clause (2). 357.20 (f)When a minor parent and minor child live with a parent,357.21other adult relative, legal guardian, or in an adult-supervised357.22supportiveRegardless of living arrangement,MFIP-SMFIP must be 357.23 paid, when possible, in the form of a protective payment on 357.24 behalf of the minor parent and minor child according to section 357.25 256J.39, subdivisions 2 to 4. 357.26 Sec. 14. Minnesota Statutes 1998, section 256J.20, 357.27 subdivision 3, is amended to read: 357.28 Subd. 3. [OTHER PROPERTY LIMITATIONS.] To be eligible for 357.29MFIP-SMFIP, the equity value of all nonexcluded real and 357.30 personal property of the assistance unit must not exceed $2,000 357.31 for applicants and $5,000 for ongoing participants. The value 357.32 of assets in clauses (1) to (20) must be excluded when 357.33 determining the equity value of real and personal property: 357.34 (1) a licensed vehicle up to a loan value of less than or 357.35 equal to $7,500. The county agency shall apply any excess loan 357.36 value as if it were equity value to the asset limit described in 358.1 this section. If the assistance unit owns more than one 358.2 licensed vehicle, the county agency shall determine the vehicle 358.3 with the highest loan value and count only the loan value over 358.4 $7,500, excluding: (i) the value of one vehicle per physically 358.5 disabled person when the vehicle is needed to transport the 358.6 disabled unit member; this exclusion does not apply to mentally 358.7 disabled people; (ii) the value of special equipment for a 358.8 handicapped member of the assistance unit; and (iii) any vehicle 358.9 used for long-distance travel, other than daily commuting, for 358.10 the employment of a unit member. 358.11 The county agency shall count the loan value of all other 358.12 vehicles and apply this amount as if it were equity value to the 358.13 asset limit described in this section.The value of special358.14equipment for a handicapped member of the assistance unit is358.15excluded.To establish the loan value of vehicles, a county 358.16 agency must use the N.A.D.A. Official Used Car Guide, Midwest 358.17 Edition, for newer model cars. When a vehicle is not listed in 358.18 the guidebook, or when the applicant or participant disputes the 358.19 loan value listed in the guidebook as unreasonable given the 358.20 condition of the particular vehicle, the county agency may 358.21 require the applicant or participant document the loan value by 358.22 securing a written statement from a motor vehicle dealer 358.23 licensed under section 168.27, stating the amount that the 358.24 dealer would pay to purchase the vehicle. The county agency 358.25 shall reimburse the applicant or participant for the cost of a 358.26 written statement that documents a lower loan value; 358.27 (2) the value of life insurance policies for members of the 358.28 assistance unit; 358.29 (3) one burial plot per member of an assistance unit; 358.30 (4) the value of personal property needed to produce earned 358.31 income, including tools, implements, farm animals, inventory, 358.32 business loans, business checking and savings accounts used at 358.33 least annually and used exclusively for the operation of a 358.34 self-employment business, and any motor vehicles if at least 50 358.35 percent of the vehicle's use is to produce income and if the 358.36 vehicles are essential for the self-employment business; 359.1 (5) the value of personal property not otherwise specified 359.2 which is commonly used by household members in day-to-day living 359.3 such as clothing, necessary household furniture, equipment, and 359.4 other basic maintenance items essential for daily living; 359.5 (6) the value of real and personal property owned by a 359.6 recipient of Supplemental Security Income or Minnesota 359.7 supplemental aid; 359.8 (7) the value of corrective payments, but only for the 359.9 month in which the payment is received and for the following 359.10 month; 359.11 (8) a mobile home or other vehicle used by an applicant or 359.12 participant as the applicant's or participant's home; 359.13 (9) money in a separate escrow account that is needed to 359.14 pay real estate taxes or insurance and that is used for this 359.15 purpose; 359.16 (10) money held in escrow to cover employee FICA, employee 359.17 tax withholding, sales tax withholding, employee worker 359.18 compensation, business insurance, property rental, property 359.19 taxes, and other costs that are paid at least annually, but less 359.20 often than monthly; 359.21 (11) monthly assistance, emergency assistance, and 359.22 diversionary payments for the current month's needs; 359.23 (12) the value of school loans, grants, or scholarships for 359.24 the period they are intended to cover; 359.25 (13) payments listed in section 256J.21, subdivision 2, 359.26 clause (9), which are held in escrow for a period not to exceed 359.27 three months to replace or repair personal or real property; 359.28 (14) income received in a budget month through the end of 359.29 the payment month; 359.30 (15) savings from earned income of a minor child or a minor 359.31 parent that are set aside in a separate account designated 359.32 specifically for future education or employment costs; 359.33 (16) the federal earned income credit, Minnesota working 359.34 family credit, state and federal income tax refunds, state 359.35 homeowners and renters credits under chapter 290A, property tax 359.36 rebatesunder Laws 1997, chapter 231, article 1, section 16,and 360.1 other federal or state tax rebates in the month received and the 360.2 following month; 360.3 (17) payments excluded under federal law as long as those 360.4 payments are held in a separate account from any nonexcluded 360.5 funds; 360.6 (18) money received by a participant of the corps to career 360.7 program under section 84.0887, subdivision 2, paragraph (b), as 360.8 a postservice benefit under the federal Americorps Act; 360.9 (19) the assets of children ineligible to receiveMFIP-S360.10 MFIP benefits because foster care or adoption assistance 360.11 payments are made on their behalf; and 360.12 (20) the assets of persons whose income is excluded under 360.13 section 256J.21, subdivision 2, clause (43). 360.14 Sec. 15. Minnesota Statutes 1998, section 256J.21, 360.15 subdivision 2, is amended to read: 360.16 Subd. 2. [INCOME EXCLUSIONS.] (a) The following must be 360.17 excluded in determining a family's available income: 360.18 (1) payments for basic care, difficulty of care, and 360.19 clothing allowances received for providing family foster care to 360.20 children or adults under Minnesota Rules, parts 9545.0010 to 360.21 9545.0260 and 9555.5050 to 9555.6265, and payments received and 360.22 used for care and maintenance of a third-party beneficiary who 360.23 is not a household member; 360.24 (2) reimbursements for employment training received through 360.25 the Job Training Partnership Act, United States Code, title 29, 360.26 chapter 19, sections 1501 to 1792b; 360.27 (3) reimbursement for out-of-pocket expenses incurred while 360.28 performing volunteer services, jury duty,oremployment, or 360.29 informal carpooling arrangements directly related to employment; 360.30 (4) all educational assistance, except the county agency 360.31 must count graduate student teaching assistantships, 360.32 fellowships, and other similar paid work as earned income and, 360.33 after allowing deductions for any unmet and necessary 360.34 educational expenses, shall count scholarships or grants awarded 360.35 to graduate students that do not require teaching or research as 360.36 unearned income; 361.1 (5) loans, regardless of purpose, from public or private 361.2 lending institutions, governmental lending institutions, or 361.3 governmental agencies; 361.4 (6) loans from private individuals, regardless of purpose, 361.5 provided an applicant or participant documents that the lender 361.6 expects repayment; 361.7 (7)(i) state income tax refunds; and 361.8 (ii) federal income tax refunds; 361.9 (8)(i) federal earned income credits; 361.10 (ii) Minnesota working family credits; 361.11 (iii) state homeowners and renters credits under chapter 361.12 290A; and 361.13 (iv)property tax rebates under Laws 1997, chapter 231,361.14article 1, section 16; and361.15(v) otherfederal or state tax rebates; 361.16 (9) funds received for reimbursement, replacement, or 361.17 rebate of personal or real property when these payments are made 361.18 by public agencies, awarded by a court, solicited through public 361.19 appeal, or made as a grant by a federal agency, state or local 361.20 government, or disaster assistance organizations, subsequent to 361.21 a presidential declaration of disaster; 361.22 (10) the portion of an insurance settlement that is used to 361.23 pay medical, funeral, and burial expenses, or to repair or 361.24 replace insured property; 361.25 (11) reimbursements for medical expenses that cannot be 361.26 paid by medical assistance; 361.27 (12) payments by a vocational rehabilitation program 361.28 administered by the state under chapter 268A, except those 361.29 payments that are for current living expenses; 361.30 (13) in-kind income, including any payments directly made 361.31 by a third party to a provider of goods and services; 361.32 (14) assistance payments to correct underpayments, but only 361.33 for the month in which the payment is received; 361.34 (15) emergency assistance payments; 361.35 (16) funeral and cemetery payments as provided by section 361.36 256.935; 362.1 (17) nonrecurring cash gifts of $30 or less, not exceeding 362.2 $30 per participant in a calendar month; 362.3 (18) any form of energy assistance payment made through 362.4 Public Law Number 97-35, Low-Income Home Energy Assistance Act 362.5 of 1981, payments made directly to energy providers by other 362.6 public and private agencies, and any form of credit or rebate 362.7 payment issued by energy providers; 362.8 (19) Supplemental Security Income, including retroactive 362.9 payments; 362.10 (20) Minnesota supplemental aid, including retroactive 362.11 payments; 362.12 (21) proceeds from the sale of real or personal property; 362.13 (22) adoption assistance payments under section 259.67; 362.14 (23) state-funded family subsidy program payments made 362.15 under section 252.32 to help families care for children with 362.16 mental retardation or related conditions; 362.17 (24) interest payments and dividends from property that is 362.18 not excluded from and that does not exceed the asset limit; 362.19 (25) rent rebates; 362.20 (26) income earned by a minor caregiveror, minor child 362.21 through age 6, or a minor child who is at least a half-time 362.22 student in an approved elementary or secondary education 362.23 program; 362.24 (27) income earned by a caregiver under age 20 who is at 362.25 least a half-time student in an approved elementary or secondary 362.26 education program; 362.27 (28)MFIP-SMFIP child care payments under section 119B.05; 362.28 (29) all other payments made throughMFIP-SMFIP to support 362.29 a caregiver's pursuit of greater self-support; 362.30 (30) income a participant receives related to shared living 362.31 expenses; 362.32 (31) reverse mortgages; 362.33 (32) benefits provided by the Child Nutrition Act of 1966, 362.34 United States Code, title 42, chapter 13A, sections 1771 to 362.35 1790; 362.36 (33) benefits provided by the women, infants, and children 363.1 (WIC) nutrition program, United States Code, title 42, chapter 363.2 13A, section 1786; 363.3 (34) benefits from the National School Lunch Act, United 363.4 States Code, title 42, chapter 13, sections 1751 to 1769e; 363.5 (35) relocation assistance for displaced persons under the 363.6 Uniform Relocation Assistance and Real Property Acquisition 363.7 Policies Act of 1970, United States Code, title 42, chapter 61, 363.8 subchapter II, section 4636, or the National Housing Act, United 363.9 States Code, title 12, chapter 13, sections 1701 to 1750jj; 363.10 (36) benefits from the Trade Act of 1974, United States 363.11 Code, title 19, chapter 12, part 2, sections 2271 to 2322; 363.12 (37) war reparations payments to Japanese Americans and 363.13 Aleuts under United States Code, title 50, sections 1989 to 363.14 1989d; 363.15 (38) payments to veterans or their dependents as a result 363.16 of legal settlements regarding Agent Orange or other chemical 363.17 exposure under Public Law Number 101-239, section 10405, 363.18 paragraph (a)(2)(E); 363.19 (39) income that is otherwise specifically excluded from 363.20the MFIP-S programMFIP consideration in federal law, state law, 363.21 or federal regulation; 363.22 (40) security and utility deposit refunds; 363.23 (41) American Indian tribal land settlements excluded under 363.24 Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 363.25 Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 363.26 reservations and payments to members of the White Earth Band, 363.27 under United States Code, title 25, chapter 9, section 331, and 363.28 chapter 16, section 1407; 363.29 (42) all income of the minor parent'sparentparents and 363.30stepparentstepparents when determining the grant for the minor 363.31 parent in households that include a minor parent living witha363.32parentparents orstepparentstepparents onMFIP-SMFIP with 363.33 other children; and 363.34 (43) income of the minor parent'sparentparents and 363.35stepparentstepparents equal to 200 percent of the federal 363.36 poverty guideline for a family size not including the minor 364.1 parent and the minor parent's child in households that include a 364.2 minor parent living witha parentparents orstepparent364.3 stepparents not onMFIP-SMFIP when determining the grant for 364.4 the minor parent. The remainder of income is deemed as 364.5 specified in section 256J.37, subdivision 1b; 364.6 (44) payments made to children eligible for relative 364.7 custody assistance under section 257.85; 364.8 (45) vendor payments for goods and services made on behalf 364.9 of a client unless the client has the option of receiving the 364.10 payment in cash; and 364.11 (46) the principal portion of a contract for deed payment. 364.12 Sec. 16. Minnesota Statutes 1998, section 256J.21, 364.13 subdivision 3, is amended to read: 364.14 Subd. 3. [INITIAL INCOME TEST.] The county agency shall 364.15 determine initial eligibility by considering all earned and 364.16 unearned income that is not excluded under subdivision 2. To be 364.17 eligible forMFIP-SMFIP, the assistance unit's countable income 364.18 minus the disregards in paragraphs (a) and (b) must be below the 364.19 transitional standard of assistance according to section 256J.24 364.20 for that size assistance unit. 364.21 (a) The initial eligibility determination must disregard 364.22 the following items: 364.23 (1) the employment disregard is 18 percent of the gross 364.24 earned income whether or not the member is working full time or 364.25 part time; 364.26 (2) dependent care costs must be deducted from gross earned 364.27 income for the actual amount paid for dependent care up to a 364.28 maximum of $200 per month for each child less than two years of 364.29 age, and $175 per month for each child two years of age and 364.30 older under this chapter and chapter 119B; 364.31 (3) all payments made according to a court order for 364.32 spousal support or the support of children not living in the 364.33 assistance unit's household shall be disregarded from the income 364.34 of the person with the legal obligation to pay support, provided 364.35 that, if there has been a change in the financial circumstances 364.36 of the person with the legal obligation to pay support since the 365.1 support order was entered, the person with the legal obligation 365.2 to pay support has petitioned for a modification of the support 365.3 order; and 365.4 (4) an allocation for the unmet need of an ineligible 365.5 spouse or an ineligible child under the age of 21 for whom the 365.6 caregiver is financially responsible and who lives with the 365.7 caregiver according to section 256J.36. 365.8 (b) Notwithstanding paragraph (a), when determining initial 365.9 eligibility for applicant units when at least one member has 365.10 receivedAFDC, family general assistance, MFIP, MFIP-R,work 365.11 first,orMFIP-SMFIP in this state within four months of the 365.12 most recent application forMFIP-SMFIP, theemployment365.13 disregard for all unit members is 36 percent of the gross earned 365.14 income. 365.15 After initial eligibility is established, the assistance 365.16 payment calculation is based on the monthly income test. 365.17 Sec. 17. Minnesota Statutes 1998, section 256J.21, 365.18 subdivision 4, is amended to read: 365.19 Subd. 4. [MONTHLY INCOME TEST AND DETERMINATION OF 365.20 ASSISTANCE PAYMENT.] The county agency shall determine ongoing 365.21 eligibility and the assistance payment amount according to the 365.22 monthly income test. To be eligible forMFIP-SMFIP, the result 365.23 of the computations in paragraphs (a) to (e) must be at least $1. 365.24 (a) Apply a 36 percent income disregard to gross earnings 365.25 and subtract this amount from the family wage level. If the 365.26 difference is equal to or greater than thetransitionalMFIP 365.27 standard of need, the assistance payment is equal to 365.28 thetransitionalMFIP standard of need. If the difference is 365.29 less than thetransitionalMFIP standard of need, the assistance 365.30 payment is equal to the difference. The employment disregard in 365.31 this paragraph must be deducted every month there is earned 365.32 income. 365.33 (b) All payments made according to a court order for 365.34 spousal support or the support of children not living in the 365.35 assistance unit's household must be disregarded from the income 365.36 of the person with the legal obligation to pay support, provided 366.1 that, if there has been a change in the financial circumstances 366.2 of the person with the legal obligation to pay support since the 366.3 support order was entered, the person with the legal obligation 366.4 to pay support has petitioned for a modification of the court 366.5 order. 366.6 (c) An allocation for the unmet need of an ineligible 366.7 spouse or an ineligible child under the age of 21 for whom the 366.8 caregiver is financially responsible and who lives with the 366.9 caregiver must be made according to section 256J.36. 366.10 (d) Subtract unearned income dollar for dollar from 366.11 the MFIPtransitionalstandard of need to determine the 366.12 assistance payment amount. 366.13 (e) When income is both earned and unearned, the amount of 366.14 the assistance payment must be determined by first treating 366.15 gross earned income as specified in paragraph (a). After 366.16 determining the amount of the assistance payment under paragraph 366.17 (a), unearned income must be subtracted from that amount dollar 366.18 for dollar to determine the assistance payment amount. 366.19 (f) When the monthly income is greater than the 366.20transitional or family wage levelMFIP standard of need after 366.21applicabledeductions and the income will only exceed the 366.22 standard for one month, the county agency must suspend the 366.23 assistance payment for the payment month. 366.24 Sec. 18. Minnesota Statutes 1998, section 256J.24, 366.25 subdivision 2, is amended to read: 366.26 Subd. 2. [MANDATORY ASSISTANCE UNIT COMPOSITION.] Except 366.27 for minor caregivers and their children who must be in a 366.28 separate assistance unit from the other persons in the 366.29 household, when the following individuals live together, they 366.30 must be included in the assistance unit: 366.31 (1) a minor child, including a pregnant minor; 366.32 (2) the minor child's minor siblings, minor half-siblings, 366.33 and minor step-siblings; 366.34 (3) the minor child's natural parents, adoptive parents, 366.35 and stepparents; and 366.36 (4) the spouse of a pregnant woman. 367.1 Sec. 19. Minnesota Statutes 1998, section 256J.24, 367.2 subdivision 3, is amended to read: 367.3 Subd. 3. [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 367.4 ASSISTANCE UNIT.] (a) The following individuals who are part of 367.5 the assistance unit determined under subdivision 2 are 367.6 ineligible to receiveMFIP-SMFIP: 367.7 (1) individuals receiving Supplemental Security Income or 367.8 Minnesota supplemental aid; 367.9 (2)individuals living at home while performing367.10court-imposed, unpaid community service work due to a criminal367.11conviction;367.12(3)individuals disqualified from the food stamp program or 367.13MFIP-SMFIP, until the disqualification ends; 367.14(4)(3) children on whose behalf federal, state, or local 367.15 foster care payments are made, except as provided in sections 367.16 256J.13, subdivision 2, and 256J.74, subdivision 2; and 367.17(5)(4) children receiving ongoing monthly adoption 367.18 assistance payments under section 259.67. 367.19 (b) The exclusion of a person under this subdivision does 367.20 not alter the mandatory assistance unit composition. 367.21 Sec. 20. Minnesota Statutes 1998, section 256J.24, 367.22 subdivision 7, is amended to read: 367.23 Subd. 7. [FAMILY WAGE LEVEL STANDARD.] The family wage 367.24 level standard is 110 percent of the transitional standard under 367.25 subdivision 5 and is the standard used when there is earned 367.26 income in the assistance unit. As specified in section 256J.21, 367.27 earned income is subtracted from the family wage level to 367.28 determine the amount of the assistance payment. Not including 367.29 the family wage level standard, assistance payments may not 367.30 exceed theshared household standard or the transitionalMFIP 367.31 standard of need for the assistance unit, whichever is less. 367.32 Sec. 21. Minnesota Statutes 1998, section 256J.24, 367.33 subdivision 8, is amended to read: 367.34 Subd. 8. [ASSISTANCE PAID TO ELIGIBLE ASSISTANCE UNITS.] 367.35 Except for assistance units where a nonparental caregiver is not 367.36 included in the grant, payments for shelter up to the amount of 368.1 the cash portion ofMFIP-SMFIP benefits for which the 368.2 assistance unit is eligible shall be vendor paid for as many 368.3 months as the assistance unit is eligible or six months, 368.4 whichever comes first. The residual amount of the grant after 368.5 vendor payment, if any, must be paid to theMFIP-SMFIP 368.6 caregiver. 368.7 Sec. 22. Minnesota Statutes 1998, section 256J.24, 368.8 subdivision 9, is amended to read: 368.9 Subd. 9. [SHARED HOUSEHOLD STANDARD;MFIP-SMFIP.] (a) 368.10 Except as prohibited in paragraph (b), the county agency must 368.11 use the shared household standard when the household includes 368.12 one or more unrelated members, as that term is defined in 368.13 section 256J.08, subdivision 86a. The county agency must use 368.14 the shared household standard, unless a member of the assistance 368.15 unit is a victim of domestic violence and has an approved safety 368.16 plan, regardless of the number of unrelated members in the 368.17 household. 368.18 (b) The county agency must not use the shared household 368.19 standard when all unrelated members are one of the following: 368.20 (1) a recipient of public assistance benefits, including 368.21 food stamps, Supplemental Security Income, adoption assistance, 368.22 relative custody assistance, or foster care payments; 368.23 (2) a roomer or boarder, or a person to whom the assistance 368.24 unit is paying room or board; 368.25 (3) a minor child under the age of 18; 368.26 (4) a minor caregiver living with the minor caregiver's 368.27 parents or in an approved supervised living arrangement;or368.28 (5) a caregiver who is not the parent of the minor child in 368.29 the assistance unit; or 368.30 (6) an individual who provides child care to a minor child 368.31 in the MFIP assistance unit. 368.32 (c) The shared household standard must be discontinued if 368.33 it is not approved by the United States Department of 368.34 Agriculture under theMFIP-SMFIP waiver. 368.35 Sec. 23. Minnesota Statutes 1998, section 256J.26, 368.36 subdivision 1, is amended to read: 369.1 Subdivision 1. [PERSON CONVICTED OF DRUG OFFENSES.] (a) 369.2 Applicants or participants who have been convicted of a drug 369.3 offense committed after July 1, 1997, may, if otherwise 369.4 eligible, receiveAFDC or MFIP-SMFIP benefits subject to the 369.5 following conditions: 369.6 (1) Benefits for the entire assistance unit must be paid in 369.7 vendor form for shelter and utilities during any time the 369.8 applicant is part of the assistance unit. 369.9 (2) The convicted applicant or participant shall be subject 369.10 to random drug testing as a condition of continued eligibility 369.11 and following any positive test for an illegal controlled 369.12 substance is subject to the following sanctions: 369.13 (i) for failing a drug test the first time, the 369.14 participant's grant shall be reduced by ten percent of the 369.15MFIP-S transitionalMFIP standard of need,the shared household369.16standard, or the interstate transitional standard, whichever is369.17applicableprior to making vendor payments for shelter and 369.18 utility costs; or 369.19 (ii) for failing a drug test two or more times, the 369.20 residual amount of the participant's grant after making vendor 369.21 payments for shelter and utility costs, if any, must be reduced 369.22 by an amount equal to 30 percent of theMFIP-S transitional369.23standard, the shared household standard, or the interstate369.24transitional standard, whichever is applicableMFIP standard of 369.25 need. 369.26 (3) A participant who fails an initial drug test and is 369.27 under a sanction due to other MFIP program requirements is 369.28 subject to the sanction in clause (2)(ii). 369.29 (b) Applicants requesting only food stamps or participants 369.30 receiving only food stamps, who have been convicted of a drug 369.31 offense that occurred after July 1, 1997, may, if otherwise 369.32 eligible, receive food stamps if the convicted applicant or 369.33 participant is subject to random drug testing as a condition of 369.34 continued eligibility. Following a positive test for an illegal 369.35 controlled substance, the applicant is subject to the following 369.36 sanctions: 370.1 (1) for failing a drug test the first time, food stamps 370.2 shall be reduced by ten percent of the applicable food stamp 370.3 allotment; and 370.4 (2) for failing a drug test two or more times, food stamps 370.5 shall be reduced by an amount equal to 30 percent of the 370.6 applicable food stamp allotment. 370.7 (c) For the purposes of this subdivision, "drug offense" 370.8 meansa convictionan offense that occurred after July 1, 1997, 370.9 of sections 152.021 to 152.025, 152.0261, or 152.096. Drug 370.10 offense also means a conviction in another jurisdiction of the 370.11 possession, use, or distribution of a controlled substance, or 370.12 conspiracy to commit any of these offenses, if the offense 370.13 occurred after July 1, 1997, and the conviction is a felony 370.14 offense in that jurisdiction, or in the case of New Jersey, a 370.15 high misdemeanor. 370.16 Sec. 24. Minnesota Statutes 1998, section 256J.30, 370.17 subdivision 2, is amended to read: 370.18 Subd. 2. [REQUIREMENT TO APPLY FOR OTHER BENEFITS.] An 370.19 applicant or participant must apply for, accept if eligible, and 370.20 follow through with appealing any denials of eligibility for 370.21 benefits from other programs for which the applicant or 370.22 participant is potentially eligible and which would, if 370.23 received, offset assistance payments. An applicant's or 370.24 participant's failure to complete application for these benefits 370.25 without good cause results in denial or termination of 370.26 assistance. Good cause for failure to apply for these benefits 370.27 is allowed when circumstances beyond the control of the 370.28 applicant or participant prevent the applicant or participant 370.29 from making an application. 370.30 Sec. 25. Minnesota Statutes 1998, section 256J.30, 370.31 subdivision 7, is amended to read: 370.32 Subd. 7. [DUE DATE OFMFIP-SMFIP HOUSEHOLD REPORT FORM.] 370.33 AnMFIP-SMFIP household report form must be received by the 370.34 county agency by the eighth calendar day of the month following 370.35 the reporting period covered by the form. When the eighth 370.36 calendar day of the month falls on a weekend or holiday, 371.1 theMFIP-SMFIP household report form must be received by the 371.2 county agency the first working day that follows the eighth 371.3 calendar day.The county agency must send a notice of371.4termination because of a late or incomplete MFIP-S household371.5report form.371.6 Sec. 26. Minnesota Statutes 1998, section 256J.30, 371.7 subdivision 8, is amended to read: 371.8 Subd. 8. [LATEMFIP-SMFIP HOUSEHOLD REPORT FORMS.] 371.9 Paragraphs (a) to (d) apply to the reporting requirements in 371.10 subdivision 7. 371.11 (a) Whena caregiver submitsthe county agency receives an 371.12 incompleteMFIP-SMFIP household report formbefore the last371.13working day of the month on which a ten-day notice of371.14termination can be issued, the county agency must immediately 371.15 return the incomplete formon or before the ten-day notice371.16deadline or any previously sent ten-day notice of termination is371.17invalidand clearly state what the caregiver must do for the 371.18 form to be complete. 371.19 (b)When a complete MFIP-S household report form is not371.20received by a county agency before the last ten days of the371.21month in which the form is due, the county agency must send A371.22 The automated eligibility system must send a notice of proposed 371.23 termination of assistance to the assistance unit if a complete 371.24 MFIP household report form is not received by a county agency. 371.25 The automated notice must be mailed to the caregiver by 371.26 approximately the 16th of the month. When a caregiver submits 371.27 an incomplete form on or after the date a notice of proposed 371.28 termination has been sent, the termination is valid unless the 371.29 caregiver submits a complete form before the end of the month. 371.30 (c) An assistance unit required to submit anMFIP-SMFIP 371.31 household report form is considered to have continued its 371.32 application for assistance if a completeMFIP-SMFIP household 371.33 report form is received within a calendar month after the month 371.34 in whichassistance was receivedthe form was due and assistance 371.35 shall be paid for the period beginning with the first day ofthe371.36month in which the report was duethat calendar month. 372.1 (d) A county agency must allow good cause exemptions from 372.2 the reporting requirements under subdivisions 5 and 6 when any 372.3 of the following factors cause a caregiver to fail to provide 372.4 the county agency with a completedMFIP-SMFIP household report 372.5 form before the end of the month in which the form is due: 372.6 (1) an employer delays completion of employment 372.7 verification; 372.8 (2) a county agency does not help a caregiver complete the 372.9MFIP-SMFIP household report form when the caregiver asks for 372.10 help; 372.11 (3) a caregiver does not receive anMFIP-SMFIP household 372.12 report form due to mistake on the part of the department or the 372.13 county agency or due to a reported change in address; 372.14 (4) a caregiver is ill, or physically or mentally 372.15 incapacitated; or 372.16 (5) some other circumstance occurs that a caregiver could 372.17 not avoid with reasonable care which prevents the caregiver from 372.18 providing a completedMFIP-SMFIP household report form before 372.19 the end of the month in which the form is due. 372.20 Sec. 27. Minnesota Statutes 1998, section 256J.30, 372.21 subdivision 9, is amended to read: 372.22 Subd. 9. [CHANGES THAT MUST BE REPORTED.] A caregiver must 372.23 report the changes or anticipated changes specified in clauses 372.24 (1) to(16)(17) within ten days of the date they occur,within372.25ten days of the date the caregiver learns that the change will372.26occur,at the time of the periodic recertification of 372.27 eligibility under section 256J.32, subdivision 6, or within 372.28 eight calendar days of a reporting period as in subdivision 5 or 372.29 6, whichever occurs first. A caregiver must report other 372.30 changes at the time of the periodic recertification of 372.31 eligibility under section 256J.32, subdivision 6, or at the end 372.32 of a reporting period under subdivision 5 or 6, as applicable. 372.33 A caregiver must make these reports in writing to the county 372.34 agency. When a county agency could have reduced or terminated 372.35 assistance for one or more payment months if a delay in 372.36 reporting a change specified under clauses (1) to (16) had not 373.1 occurred, the county agency must determine whether a timely 373.2 notice under section 256J.31, subdivision 4, could have been 373.3 issued on the day that the change occurred. When a timely 373.4 notice could have been issued, each month's overpayment 373.5 subsequent to that notice must be considered a client error 373.6 overpayment under section 256J.38. Calculation of overpayments 373.7 for late reporting under clause (17) is specified in section 373.8 256J.09, subdivision 9. Changes in circumstances which must be 373.9 reported within ten days must also be reported on theMFIP-S373.10 MFIP household report form for the reporting period in which 373.11 those changes occurred. Within ten days, a caregiver must 373.12 report: 373.13 (1) a change in initial employment; 373.14 (2) a change in initial receipt of unearned income; 373.15 (3) a recurring change in unearned income; 373.16 (4) a nonrecurring change of unearned income that exceeds 373.17 $30; 373.18 (5) the receipt of a lump sum; 373.19 (6) an increase in assets that may cause the assistance 373.20 unit to exceed asset limits; 373.21 (7) a change in the physical or mental status of an 373.22 incapacitated member of the assistance unit if the physical or 373.23 mental status is the basis of exemption from anMFIP-S work and373.24trainingMFIP employment services program; 373.25 (8) a change in employment status; 373.26 (9)a change in household composition, including births,373.27returns to and departures from the home of assistance unit373.28members and financially responsible persons, or a change in the373.29custody of a minor childinformation affecting an exception 373.30 under section 256J.24, subdivision 9; 373.31 (10) a change in health insurance coverage; 373.32 (11) the marriage or divorce of an assistance unit member; 373.33 (12) the death of a parent, minor child, or financially 373.34 responsible person; 373.35 (13) a change in address or living quarters of the 373.36 assistance unit; 374.1 (14) the sale, purchase, or other transfer of property; 374.2 (15) a change in school attendance of a custodial parent or 374.3 an employed child;and374.4 (16) filing a lawsuit, a workers' compensation claim, or a 374.5 monetary claim against a third party; and 374.6 (17) a change in household composition, including births, 374.7 returns to and departures from the home of assistance unit 374.8 members and financially responsible persons, or a change in the 374.9 custody of a minor child. 374.10 Sec. 28. Minnesota Statutes 1998, section 256J.31, 374.11 subdivision 5, is amended to read: 374.12 Subd. 5. [MAILING OF NOTICE.] The notice of adverse action 374.13 shall be issued according to paragraphs (a) to(c)(d). 374.14 (a) Acounty agency shall mail anotice of adverse action 374.15 must be mailed at least ten days before the effective date of 374.16 the adverse action, except as provided in paragraphs (b)and (c)374.17 to (d). 374.18 (b)A county agency must mail a notice of adverse action at374.19least five days before the effective date of the adverse action374.20when the county agency has factual information that requires an374.21action to reduce, suspend, or terminate assistance based on374.22probable fraud.374.23(c) A county agency shall mailA notice of adverse action 374.24before or on the effective date of the adverse actionmust be 374.25 mailed no later than four working days before the end of the 374.26 month when the county agency: 374.27 (1)receives the caregiver's signed monthly MFIP-S374.28household report form that includes information that requires374.29payment reduction, suspension, or termination;374.30(2)is informed of the death ofa participantthe only 374.31 caregiver orthepayee in an assistance unit; 374.32(3)(2) receives a signed statement from the caregiver that 374.33 assistance is no longer wanted; 374.34(4) receives a signed statement from the caregiver that374.35provides information that requires the termination or reduction374.36of assistance(3) has factual information to reduce, suspend, or 375.1 terminate assistance based on the failure to timely report 375.2 changes; 375.3(5) verifies that a member of the assistance unit is absent375.4from the home and does not meet temporary absence provisions in375.5section 256J.13;375.6(6)(4) verifies that a member of the assistance unit has 375.7 entered a regional treatment center or a licensed residential 375.8 facility for medical or psychological treatment or 375.9 rehabilitation; 375.10(7)(5) verifies that a member of an assistance unit has 375.11 been removed from the home as a result of a judicial 375.12 determination or placed in foster care, and the provisions of 375.13 section 256J.13, subdivision 2, paragraph (c), clause (2), do 375.14 not apply; 375.15(8) verifies that a member of an assistance unit has been375.16approved to receive assistance by another state;or 375.17(9)(6) cannot locate a caregiver. 375.18 (c) A notice of adverse action must be mailed for a payment 375.19 month when the caregiver makes a written request for closure 375.20 before the first of that payment month. 375.21 (d) A notice of adverse action must be mailed before the 375.22 effective date of the adverse action when the county agency 375.23 receives the caregiver's signed and completed MFIP household 375.24 report form or recertification form that includes information 375.25 that requires payment reduction, suspension, or termination. 375.26 Sec. 29. Minnesota Statutes 1998, section 256J.31, 375.27 subdivision 12, is amended to read: 375.28 Subd. 12. [RIGHT TO DISCONTINUE CASH ASSISTANCE.] A 375.29 participant who is not in vendor payment status may discontinue 375.30 receipt of the cash assistance portion ofMFIP-Sthe MFIP 375.31 assistance grant and retain eligibility for child care 375.32 assistance under section 119B.05 and for medical assistance 375.33 under sections 256B.055, subdivision 3a, and 256B.0635. For the 375.34 months a participant chooses to discontinue the receipt of the 375.35 cash portion of the MFIP grant, the assistance unit accrues 375.36 months of eligibility to be applied toward eligibility for child 376.1 care under section 119B.05 and for medical assistance under 376.2 sections 256B.055, subdivision 3a, and 256B.0635. 376.3 Sec. 30. Minnesota Statutes 1998, section 256J.32, 376.4 subdivision 4, is amended to read: 376.5 Subd. 4. [FACTORS TO BE VERIFIED.] The county agency shall 376.6 verify the following at application: 376.7 (1) identity of adults; 376.8 (2) presence of the minor child in the home, if 376.9 questionable; 376.10 (3) relationship of a minor child to caregivers in the 376.11 assistance unit; 376.12 (4) age, if necessary to determineMFIP-SMFIP eligibility; 376.13 (5) immigration status; 376.14 (6) social security number according to the requirements of 376.15 section 256J.30, subdivision 12; 376.16 (7) income; 376.17 (8) self-employment expenses used as a deduction; 376.18 (9) source and purpose of deposits and withdrawals from 376.19 business accounts; 376.20 (10) spousal support and child support payments made to 376.21 persons outside the household; 376.22 (11) real property; 376.23 (12) vehicles; 376.24 (13) checking and savings accounts; 376.25 (14) savings certificates, savings bonds, stocks, and 376.26 individual retirement accounts; 376.27 (15) pregnancy, if related to eligibility; 376.28 (16) inconsistent information, if related to eligibility; 376.29 (17) medical insurance; 376.30 (18)anticipated graduation date of an 18-year-old;376.31(19)burial accounts; 376.32(20)(19) school attendance, if related to eligibility; 376.33(21)(20) residence; 376.34(22)(21) a claim of domestic violence if used as a basis 376.35 for a deferral or exemption from the 60-month time limit in 376.36 section 256J.42 or employment and training services requirements 377.1 in section 256J.56;and377.2(23)(22) disability if used as an exemption from 377.3 employment and training services requirements under section 377.4 256J.56; and 377.5 (23) information needed to establish an exception under 377.6 section 256J.24, subdivision 9. 377.7 Sec. 31. Minnesota Statutes 1998, section 256J.32, 377.8 subdivision 6, is amended to read: 377.9 Subd. 6. [RECERTIFICATION.] The county agency shall 377.10 recertify eligibility in an annual face-to-face interview with 377.11 the participant and verify the following: 377.12 (1) presence of the minor child in the home, if 377.13 questionable; 377.14 (2) income, unless excluded, including self-employment 377.15 expenses used as a deduction or deposits or withdrawals from 377.16 business accounts; 377.17 (3) assets when the value is within $200 of the asset 377.18 limit;and377.19 (4) information to establish an exception under section 377.20 256J.24, subdivision 9, if questionable; and 377.21 (5) inconsistent information, if related to eligibility. 377.22 Sec. 32. Minnesota Statutes 1998, section 256J.33, is 377.23 amended to read: 377.24 256J.33 [PROSPECTIVE AND RETROSPECTIVE DETERMINATION OF 377.25MFIP-SMFIP ELIGIBILITY.] 377.26 Subdivision 1. [DETERMINATION OF ELIGIBILITY.] A county 377.27 agency must determineMFIP-SMFIP eligibility prospectively for 377.28 a payment month based on retrospectively assessing income and 377.29 the county agency's best estimate of the circumstances that will 377.30 exist in the payment month. 377.31 Except as described in section 256J.34, subdivision 1, when 377.32 prospective eligibility exists, a county agency must calculate 377.33 the amount of the assistance payment using retrospective 377.34 budgeting. To determineMFIP-SMFIP eligibility and the 377.35 assistance payment amount, a county agency must apply countable 377.36 income, described in section 256J.37, subdivisions 3 to 10, 378.1 received by members of an assistance unit or by other persons 378.2 whose income is counted for the assistance unit, described under 378.3 sections 256J.21 and 256J.37, subdivisions 1 to 2. 378.4 This income must be applied to thetransitionalMFIP 378.5 standard, shared household standard,of need or family 378.6 wagestandardlevel subject to this section and sections 256J.34 378.7 to 256J.36. Income received in a calendar month and not 378.8 otherwise excluded under section 256J.21, subdivision 2, must be 378.9 applied to the needs of an assistance unit. 378.10 Subd. 2. [PROSPECTIVE ELIGIBILITY.] A county agency must 378.11 determine whether the eligibility requirements that pertain to 378.12 an assistance unit, including those in sections 256J.11 to 378.13 256J.15 and 256J.20, will be met prospectively for the payment 378.14 month. Except for the provisions in section 256J.34, 378.15 subdivision 1, the income test will be applied retrospectively. 378.16 Subd. 3. [RETROSPECTIVE ELIGIBILITY.] After the first two 378.17 months ofMFIP-SMFIP eligibility, a county agency must continue 378.18 to determine whether an assistance unit is prospectively 378.19 eligible for the payment month by looking at all factors other 378.20 than income and then determine whether the assistance unit is 378.21 retrospectively income eligible by applying the monthly income 378.22 test to the income from the budget month. When the monthly 378.23 income test is not satisfied, the assistance payment must be 378.24 suspended when ineligibility exists for one month or ended when 378.25 ineligibility exists for more than one month. 378.26 Subd. 4. [MONTHLY INCOME TEST.] A county agency must apply 378.27 the monthly income test retrospectively for each month ofMFIP-S378.28 MFIP eligibility. An assistance unit is not eligible when the 378.29 countable income equals or exceeds thetransitionalMFIP 378.30 standard, shared household standard,of need or the family wage 378.31 level for the assistance unit. The income applied against the 378.32 monthly income test must include: 378.33 (1) gross earned income from employment, prior to mandatory 378.34 payroll deductions, voluntary payroll deductions, wage 378.35 authorizations, and after the disregards in section 256J.21, 378.36 subdivision 4, and the allocations in section 256J.36, unless 379.1 the employment income is specifically excluded under section 379.2 256J.21, subdivision 2; 379.3 (2) gross earned income from self-employment less 379.4 deductions for self-employment expenses in section 256J.37, 379.5 subdivision 5, but prior to any reductions for personal or 379.6 business state and federal income taxes, personal FICA, personal 379.7 health and life insurance, and after the disregards in section 379.8 256J.21, subdivision 4, and the allocations in section 256J.36; 379.9 (3) unearned income after deductions for allowable expenses 379.10 in section 256J.37, subdivision 9, and allocations in section 379.11 256J.36, unless the income has been specifically excluded in 379.12 section 256J.21, subdivision 2; 379.13 (4) gross earned income from employment as determined under 379.14 clause (1) which is received by a member of an assistance unit 379.15 who is a minor child or minor caregiver and less than a 379.16 half-time student; 379.17 (5) child support and spousal support received or 379.18 anticipated to be received by an assistance unit; 379.19 (6) the income of a parent when that parent is not included 379.20 in the assistance unit; 379.21 (7) the income of an eligible relative and spouse who seek 379.22 to be included in the assistance unit; and 379.23 (8) the unearned income of a minor child included in the 379.24 assistance unit. 379.25 Subd. 5. [WHEN TO TERMINATE ASSISTANCE.] When an 379.26 assistance unit is ineligible forMFIP-SMFIP assistance for two 379.27 consecutive months, the county agency must terminateMFIP-SMFIP 379.28 assistance. 379.29 Sec. 33. Minnesota Statutes 1998, section 256J.34, 379.30 subdivision 1, is amended to read: 379.31 Subdivision 1. [PROSPECTIVE BUDGETING.] A county agency 379.32 must use prospective budgeting to calculate the assistance 379.33 payment amount for the first two months for an applicant who has 379.34 not received assistance in this state for at least one payment 379.35 month preceding the first month of payment under a current 379.36 application. Notwithstanding subdivision 3, paragraph (a), 380.1 clause (2), a county agency must use prospective budgeting for 380.2 the first two months for a person who applies to be added to an 380.3 assistance unit. Prospective budgeting is not subject to 380.4 overpayments or underpayments unless fraud is determined under 380.5 section 256.98. 380.6 (a) The county agency must apply the income received or 380.7 anticipated in the first month ofMFIP-SMFIP eligibility 380.8 against the need of the first month. The county agency must 380.9 apply the income received or anticipated in the second month 380.10 against the need of the second month. 380.11 (b) When the assistance payment for any part of the first 380.12 two months is based on anticipated income, the county agency 380.13 must base the initial assistance payment amount on the 380.14 information available at the time the initial assistance payment 380.15 is made. 380.16 (c) The county agency must determine the assistance payment 380.17 amount for the first two months ofMFIP-SMFIP eligibility by 380.18 budgeting both recurring and nonrecurring income for those two 380.19 months. 380.20 (d) The county agency must budget the child support income 380.21 received or anticipated to be received by an assistance unit to 380.22 determine the assistance payment amount from the month of 380.23 application through the date in whichMFIP-SMFIP eligibility is 380.24 determined and assistance is authorized. Child support income 380.25 which has been budgeted to determine the assistance payment in 380.26 the initial two months is considered nonrecurring income. An 380.27 assistance unit must forward any payment of child support to the 380.28 child support enforcement unit of the county agency following 380.29 the date in which assistance is authorized. 380.30 Sec. 34. Minnesota Statutes 1998, section 256J.34, 380.31 subdivision 3, is amended to read: 380.32 Subd. 3. [ADDITIONAL USES OF RETROSPECTIVE BUDGETING.] 380.33 Notwithstanding subdivision 1, the county agency must use 380.34 retrospective budgeting to calculate the monthly assistance 380.35 payment amount for the first two months under paragraphs (a) and 380.36 (b). 381.1 (a) The county agency must use retrospective budgeting to 381.2 determine the amount of the assistance payment in the first two 381.3 months ofMFIP-SMFIP eligibility: 381.4 (1) when an assistance unit applies for assistance for the 381.5 same month for which assistance has been interrupted, the 381.6 interruption in eligibility is less than one payment month, the 381.7 assistance payment for the preceding month was issued in this 381.8 state, and the assistance payment for the immediately preceding 381.9 month was determined retrospectively; or 381.10 (2) when a person applies in order to be added to an 381.11 assistance unit, that assistance unit has received assistance in 381.12 this state for at least the two preceding months, and that 381.13 person has been living with and has been financially responsible 381.14 for one or more members of that assistance unit for at least the 381.15 two preceding months. 381.16 (b) Except as provided in clauses (1) to (4), the county 381.17 agency must use retrospective budgeting and apply income 381.18 received in the budget month by an assistance unit and by a 381.19 financially responsible household member who is not included in 381.20 the assistance unit against theappropriate transitional or381.21family wage levelMFIP standard of need or family wage level to 381.22 determine the assistance payment to be issued for the payment 381.23 month. 381.24 (1) When a source of income ends prior to the third payment 381.25 month, that income is not considered in calculating the 381.26 assistance payment for that month. When a source of income ends 381.27 prior to the fourth payment month, that income is not considered 381.28 when determining the assistance payment for that month. 381.29 (2) When a member of an assistance unit or a financially 381.30 responsible household member leaves the household of the 381.31 assistance unit, the income of that departed household member is 381.32 not budgeted retrospectively for any full payment month in which 381.33 that household member does not live with that household and is 381.34 not included in the assistance unit. 381.35 (3) When an individual is removed from an assistance unit 381.36 because the individual is no longer a minor child, the income of 382.1 that individual is not budgeted retrospectively for payment 382.2 months in which that individual is not a member of the 382.3 assistance unit, except that income of an ineligible child in 382.4 the household must continue to be budgeted retrospectively 382.5 against the child's needs when the parent or parents of that 382.6 child request allocation of their income against any unmet needs 382.7 of that ineligible child. 382.8 (4) When a person ceases to have financial responsibility 382.9 for one or more members of an assistance unit, the income of 382.10 that person is not budgeted retrospectively for the payment 382.11 months which follow the month in which financial responsibility 382.12 ends. 382.13 Sec. 35. Minnesota Statutes 1998, section 256J.34, 382.14 subdivision 4, is amended to read: 382.15 Subd. 4. [SIGNIFICANT CHANGE IN GROSS INCOME.] The county 382.16 agency must recalculate the assistance payment when an 382.17 assistance unit experiences a significant change, as defined in 382.18 section 256J.08, resulting in a reduction in the gross income 382.19 received in the payment month from the gross income received in 382.20 the budget month. The county agency must issue a supplemental 382.21 assistance payment based on the county agency's best estimate of 382.22 the assistance unit's income and circumstances for the payment 382.23 month.Budget adjustmentsSupplemental assistance payments that 382.24 result from significant changes are limited to two in a 12-month 382.25 period regardless of the reason for the change.Budget382.26adjustmentsNotwithstanding any other statute or rule of law, 382.27 supplementary assistance payments shall not be made when the 382.28 significant change in income is the result of receipt of a lump 382.29 sum, receipt of an extra paycheck, business fluctuation in 382.30 self-employment income, or an assistance unit member's 382.31 participation in a strike or other labor action. Supplementary 382.32 assistance payments due to a significant change in the amount of 382.33 direct support received must not be made after the date the 382.34 assistance unit is required to forward support to the child 382.35 support enforcement unit under subdivision 1, paragraph (d). 382.36 Sec. 36. Minnesota Statutes 1998, section 256J.35, is 383.1 amended to read: 383.2 256J.35 [AMOUNT OF ASSISTANCE PAYMENT.] 383.3 Except as provided in paragraphs (a) to(d)(c), the amount 383.4 of an assistance payment is equal to the difference between the 383.5transitionalMFIP standard, shared household standard,of need 383.6 or the Minnesota family wage level in section 256J.24, whichever383.7is less,and countable income. 383.8 (a) WhenMFIP-SMFIP eligibility exists for the month of 383.9 application, the amount of the assistance payment for the month 383.10 of application must be prorated from the date of application or 383.11 the date all other eligibility factors are met for that 383.12 applicant, whichever is later. This provision applies when an 383.13 applicant loses at least one day ofMFIP-SMFIP eligibility. 383.14 (b)MFIP-SMFIP overpayments to an assistance unit must be 383.15 recouped according to section 256J.38, subdivision 4. 383.16 (c) An initial assistance payment must not be made to an 383.17 applicant who is not eligible on the date payment is made. 383.18(d) An individual whose needs have been otherwise provided383.19for in another state, in whole or in part by county, state, or383.20federal dollars during a month, is ineligible to receive MFIP-S383.21for the month.383.22 Sec. 37. Minnesota Statutes 1998, section 256J.36, is 383.23 amended to read: 383.24 256J.36 [ALLOCATION FOR UNMET NEED OF OTHER HOUSEHOLD 383.25 MEMBERS.] 383.26 Except as prohibited in paragraphs (a) and (b), an 383.27 allocation of income is allowed from the caregiver's income to 383.28 meet the unmet need of an ineligible spouse or an ineligible 383.29 child under the age of 21 for whom the caregiver is financially 383.30 responsible who also lives with the caregiver. That allocation 383.31 is allowed in an amount up to the difference between theMFIP-S383.32transitionalMFIP standard of need for the assistance unit when 383.33 that ineligible person is included in the assistance unit and 383.34 theMFIP-S family allowanceMFIP standard of need for the 383.35 assistance unit when the ineligible person is not included in 383.36 the assistance unit. These allocations must be deducted from 384.1 the caregiver's counted earnings and from unearned income 384.2 subject to paragraphs (a) and (b). 384.3 (a) Income of a minor child in the assistance unit must not 384.4 be allocated to meet the need of an ineligible person, including 384.5 the child's parent, even when that parent is the payee of the 384.6 child's income. 384.7 (b) Income of a caregiver must not be allocated to meet the 384.8 needs of a disqualified person. 384.9 Sec. 38. Minnesota Statutes 1998, section 256J.37, 384.10 subdivision 1, is amended to read: 384.11 Subdivision 1. [DEEMED INCOME FROM INELIGIBLE HOUSEHOLD 384.12 MEMBERS.] Unless otherwise provided under subdivision 1a or 1b, 384.13 the income of ineligible household members must be deemed after 384.14 allowing the following disregards: 384.15 (1) the first 18 percent of the ineligible family member's 384.16 gross earned income; 384.17 (2) amounts the ineligible person actually paid to 384.18 individuals not living in the same household but whom the 384.19 ineligible person claims or could claim as dependents for 384.20 determining federal personal income tax liability; 384.21 (3) all payments made by the ineligible person according to 384.22 a court order for spousal support or the support of children not 384.23 living in the assistance unit's household, provided that, if 384.24 there has been a change in the financial circumstances of the 384.25 ineligible person since the support order was entered, the 384.26 ineligible person has petitioned for a modification of the 384.27 support order; and 384.28 (4) an amount for the needs of the ineligible person and 384.29 other persons who live in the household but are not included in 384.30 the assistance unit and are or could be claimed by an ineligible 384.31 person as dependents for determining federal personal income tax 384.32 liability. This amount is equal to the difference between the 384.33MFIP-S transitionalMFIP standard of need when the ineligible 384.34 person is included in the assistance unit and theMFIP-S384.35transitionalMFIP standard of need when the ineligible person is 384.36 not included in the assistance unit. 385.1 Sec. 39. Minnesota Statutes 1998, section 256J.37, 385.2 subdivision 1a, is amended to read: 385.3 Subd. 1a. [DEEMED INCOME FROM DISQUALIFIED MEMBERS.] The 385.4 income of disqualified members must be deemed after allowing the 385.5 following disregards: 385.6 (1) the first 18 percent of the disqualified member's gross 385.7 earned income; 385.8 (2) amounts the disqualified member actually paid to 385.9 individuals not living in the same household but whom the 385.10 disqualified member claims or could claim as dependents for 385.11 determining federal personal income tax liability; 385.12 (3) all payments made by the disqualified member according 385.13 to a court order for spousal support or the support of children 385.14 not living in the assistance unit's household, provided that, if 385.15 there has been a change in the financial circumstances of the 385.16 disqualified member's legal obligation to pay support since the 385.17 support order was entered, the disqualified member has 385.18 petitioned for a modification of the support order; and 385.19 (4) an amount for the needs of other persons who live in 385.20 the household but are not included in the assistance unit and 385.21 are or could be claimed by the disqualified member as dependents 385.22 for determining federal personal income tax liability. This 385.23 amount is equal to the difference between theMFIP-S385.24transitionalMFIP standard of need when the ineligible person is 385.25 included in the assistance unit and theMFIP-S transitionalMFIP 385.26 standard of need when the ineligible person is not included in 385.27 the assistance unit. An amount shall not be allowed for the 385.28 needs of a disqualified member. 385.29 Sec. 40. Minnesota Statutes 1998, section 256J.37, 385.30 subdivision 2, is amended to read: 385.31 Subd. 2. [DEEMED INCOME AND ASSETS OF SPONSOR OF 385.32 NONCITIZENS.] (a) If a noncitizen applies for or receives MFIP, 385.33 the county must deem the income and assets of the noncitizen's 385.34 sponsor and the sponsor's spouse as provided in this paragraph 385.35 and paragraph (b) or (c), whichever is applicable. The deemed 385.36 income of a sponsor and the sponsor's spouse is considered 386.1 unearned income of the noncitizen. The deemed assets of a 386.2 sponsor and the sponsor's spouse are considered available assets 386.3 of the noncitizen. 386.4 (b) The income and assets of a sponsor who signed an 386.5 affidavit of support under title IV, sections 421, 422, and 423, 386.6 of Public Law Number 104-193, the Personal Responsibility and 386.7 Work Opportunity Reconciliation Act of 1996, and the income and 386.8 assets of the sponsor's spouse, must be deemed to the noncitizen 386.9 to the extent required by those sections of Public Law Number 386.10 104-193. 386.11 (c) The income and assets of a sponsor and the sponsor's 386.12 spouse to whom the provisions of paragraph (b) do not apply must 386.13 be deemed to the noncitizen to the full extent allowed under 386.14 title V, section 5505, of Public Law Number 105-33, the Balanced 386.15 Budget Act of 1997. 386.16If a noncitizen applies for or receives MFIP-S, the county386.17must deem the income and assets of the noncitizen's sponsor and386.18the sponsor's spouse who have signed an affidavit of support for386.19the noncitizen as specified in Public Law Number 104-193, title386.20IV, sections 421 and 422, the Personal Responsibility and Work386.21Opportunity Reconciliation Act of 1996. The income of a sponsor386.22and the sponsor's spouse is considered unearned income of the386.23noncitizen. The assets of a sponsor and the sponsor's spouse386.24are considered available assets of the noncitizen.386.25 Sec. 41. Minnesota Statutes 1998, section 256J.37, 386.26 subdivision 9, is amended to read: 386.27 Subd. 9. [UNEARNED INCOME.] (a) The county agency must 386.28 apply unearned income to thetransitionalMFIP standard of 386.29 need. When determining the amount of unearned income, the 386.30 county agency must deduct the costs necessary to secure payments 386.31 of unearned income. These costs include legal fees, medical 386.32 fees, and mandatory deductions such as federal and state income 386.33 taxes. 386.34 (b) Effective July 1, 1999, the county agency shall count 386.35 $100 of the value of public and assisted rental subsidies 386.36 provided through the Department of Housing and Urban Development 387.1 (HUD) as unearned income. The full amount of the subsidy must 387.2 be counted as unearned income when the subsidy is less than $100. 387.3 (c) The provisions of paragraph (b) shall not apply to MFIP 387.4 participants who are exempt from the employment and training 387.5 services component because they are: 387.6 (i) individuals who are age 60 or older; 387.7 (ii) individuals who are suffering from a professionally 387.8 certified permanent or temporary illness, injury, or incapacity 387.9 which is expected to continue for more than 30 days and which 387.10 prevents the person from obtaining or retaining employment; or 387.11 (iii) caregivers whose presence in the home is required 387.12 because of the professionally certified illness or incapacity of 387.13 another member in the assistance unit, a relative in the 387.14 household, or a foster child in the household. 387.15 (d) The provisions of paragraph (b) shall not apply to an 387.16 MFIP assistance unit where the parental caregiver receives 387.17 supplemental security income. 387.18 Sec. 42. Minnesota Statutes 1998, section 256J.37, 387.19 subdivision 10, is amended to read: 387.20 Subd. 10. [TREATMENT OF LUMP SUMS.] (a) The county agency 387.21 must treat lump-sum payments as earned or unearned income. If 387.22 the lump-sum payment is included in the category of income 387.23 identified in subdivision 9, it must be treated as unearned 387.24 income. A lump sum is counted as income in the month received 387.25 and budgeted either prospectively or retrospectively depending 387.26 on the budget cycle at the time of receipt. When an individual 387.27 receives a lump-sum payment, that lump sum must be combined with 387.28 all other earned and unearned income received in the same budget 387.29 month, and it must be applied according to paragraphs (a) to 387.30 (c). A lump sum may not be carried over into subsequent months. 387.31 Any funds that remain in the third month after the month of 387.32 receipt are counted in the asset limit. 387.33 (b) For a lump sum received by an applicant during the 387.34 first two months, prospective budgeting is used to determine the 387.35 payment and the lump sum must be combined with other earned or 387.36 unearned income received and budgeted in that prospective month. 388.1 (c) For a lump sum received by a participant after the 388.2 first two months ofMFIP-SMFIP eligibility, the lump sum must 388.3 be combined with other income received in that budget month, and 388.4 the combined amount must be applied retrospectively against the 388.5 applicable payment month. 388.6 (d) When a lump sum, combined with other income under 388.7 paragraphs (b) and (c), is less than thetransitionalMFIP 388.8 standard of need for theapplicableappropriate payment month, 388.9 the assistance payment must be reduced according to the amount 388.10 of the countable income. When the countable income is greater 388.11 than thetransitionalMFIP standardor the family wage388.12standardor family wage level, the assistance payment must be 388.13 suspended for the payment month. 388.14 Sec. 43. Minnesota Statutes 1998, section 256J.38, 388.15 subdivision 4, is amended to read: 388.16 Subd. 4. [RECOUPING OVERPAYMENTS FROM PARTICIPANTS.] A 388.17 participant may voluntarily repay, in part or in full, an 388.18 overpayment even if assistance is reduced under this 388.19 subdivision, until the total amount of the overpayment is 388.20 repaid. When an overpayment occurs due to fraud, the county 388.21 agency must recover ten percent of thetransitionalapplicable 388.22 standard or the amount of the monthly assistance payment, 388.23 whichever is less. When a nonfraud overpayment occurs, the 388.24 county agency must recover three percent of thetransitional388.25 MFIP standard of need or the amount of the monthly assistance 388.26 payment, whichever is less. 388.27 Sec. 44. Minnesota Statutes 1998, section 256J.42, 388.28 subdivision 1, is amended to read: 388.29 Subdivision 1. [TIME LIMIT.] (a) Except for the exemptions 388.30 in this sectionand in section 256J.11, subdivision 2, an 388.31 assistance unit in which any adult caregiver has received 60 388.32 months of cash assistance funded in whole or in part by the TANF 388.33 block grant in this or any other state or United States 388.34 territory,MFIP-Sor from a tribal TANF program, MFIP, AFDC, or 388.35 family general assistance, funded in whole or in part by state 388.36 appropriations, is ineligible to receiveMFIP-SMFIP. Any cash 389.1 assistance funded with TANF dollars in this or any other state 389.2 or United States territory, or from a tribal TANF program, or 389.3MFIP-SMFIP assistance funded in whole or in part by state 389.4 appropriations, that was received by the unit on or after the 389.5 date TANF was implemented, including any assistance received in 389.6 states or United States territories of prior residence, counts 389.7 toward the 60-month limitation. The 60-month limit applies to a 389.8 minor who is the head of a household or who is married to the 389.9 head of a household except under subdivision 5. The 60-month 389.10 time period does not need to be consecutive months for this 389.11 provision to apply. 389.12 (b) The months before July 1998 in which individuals 389.13receivereceived assistance as part of the field trials as an 389.14 MFIP, MFIP-R, or MFIP or MFIP-R comparison group familyunder389.15sections 256.031 to 256.0361 or sections 256.047 to 256.048are 389.16 not included in the 60-month time limit. 389.17 Sec. 45. Minnesota Statutes 1998, section 256J.42, 389.18 subdivision 5, is amended to read: 389.19 Subd. 5. [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash 389.20 assistance received by an assistance unit does not count toward 389.21 the 60-month limit on assistance during a month in which the 389.22 caregiver is in the category in section 256J.56, paragraph (a), 389.23 clause (1).The exemption applies for the period of time the389.24caregiver belongs to one of the categories specified in this389.25subdivision.389.26 (b) From July 1, 1997, until the dateMFIP-SMFIP is 389.27 operative in the caregiver's county of financial responsibility, 389.28 any cash assistance received by a caregiver who is complying 389.29 with sections 256.73, subdivision 5a, and 256.736, if 389.30 applicable, does not count toward the 60-month limit on 389.31 assistance. Thereafter, any cash assistance received by a minor 389.32 caregiver who is complying with the requirements of sections 389.33 256J.14 and 256J.54, if applicable, does not count towards the 389.34 60-month limit on assistance. 389.35 (c) Any diversionary assistance or emergency assistance 389.36 received does not count toward the 60-month limit. 390.1 (d) Any cash assistance received by an 18- or 19-year-old 390.2 caregiver who is complying with the requirements of section 390.3 256J.54 does not count toward the 60-month limit. 390.4 Sec. 46. Minnesota Statutes 1998, section 256J.43, is 390.5 amended to read: 390.6 256J.43 [INTERSTATEPAYMENTTRANSITIONAL STANDARDS.] 390.7 Subdivision 1. [PAYMENT.] (a) Effective July 1, 1997, the 390.8 amount of assistance paid to an eligible unit in which all 390.9 members have resided in this state for fewer than 12 consecutive 390.10 calendar months immediately preceding the date of application 390.11 shall be the lesser of either the interstate transitional 390.12 standard that would have been received by the assistance unit 390.13 from the state of immediate prior residence, or the amount 390.14 calculated in accordance withAFDC or MFIP-SMFIP standards. 390.15 The lesser payment must continue until the assistance unit meets 390.16 the 12-month requirement. An assistance unit that has not 390.17 resided in Minnesota for 12 months from the date of application 390.18 is not exempt from the interstatepaymenttransitional standards 390.19 provisions solely because a child is born in Minnesota to a 390.20 member of the assistance unit. Payment must be calculated by 390.21 applying thisstate'sMFIP's budgeting policies, and the unit's 390.22 net income must be deducted from the payment standard in the 390.23 other state or the MFIP transitional or shared household 390.24 standard in this state, whichever is lower. Payment shall be 390.25 made in vendor form for shelter and utilities, up to the limit 390.26 of the grant amount, and residual amounts, if any, shall be paid 390.27 directly to the assistance unit. 390.28 (b) During the first 12 months an assistance unit resides 390.29 in this state, the number of months that a unit is eligible to 390.30 receiveAFDC or MFIP-SMFIP benefits is limited to the number of 390.31 months the assistance unit would have been eligible to receive 390.32 similar benefits in the state of immediate prior residence. 390.33 (c) This policy applies whether or not the assistance unit 390.34 received similar benefits while residing in the state of 390.35 previous residence. 390.36 (d) When an assistance unit moves to this state from 391.1 another state where the assistance unit has exhausted that 391.2 state's time limit for receiving benefits under that state's 391.3 TANF program, the unit will not be eligible to receive anyAFDC391.4or MFIP-SMFIP benefits in this state for 12 months from the 391.5 date the assistance unit moves here. 391.6 (e) For the purposes of this section, "state of immediate 391.7 prior residence" means: 391.8 (1) the state in which the applicant declares the applicant 391.9 spent the most time in the 30 days prior to moving to this 391.10 state; or 391.11 (2) the state in which an applicant who is a migrant worker 391.12 maintains a home. 391.13 (f) The commissioner shall annually verify and update all 391.14 other states' payment standards as they are to be in effect in 391.15 July of each year. 391.16 (g) Applicants must provide verification of their state of 391.17 immediate prior residence, in the form of tax statements, a 391.18 driver's license, automobile registration, rent receipts, or 391.19 other forms of verification approved by the commissioner. 391.20 (h) Migrant workers, as defined in section 256J.08, and 391.21 their immediate families are exempt from this section, provided 391.22 the migrant worker provides verification that the migrant family 391.23 worked in this state within the last 12 months and earned at 391.24 least $1,000 in gross wages during the time the migrant worker 391.25 worked in this state. 391.26 Subd. 2. [TEMPORARY ABSENCE FROM MINNESOTA.] (a) For an 391.27 assistance unit that has met the requirements of section 391.28 256J.12, the number of months that the assistance unit receives 391.29 benefits under the interstatepaymenttransitional standards in 391.30 this section is not affected by an absence from Minnesota for 391.31 fewer than 30 consecutive days. 391.32 (b) For an assistance unit that has met the requirements of 391.33 section 256J.12, the number of months that the assistance unit 391.34 receives benefits under the interstatepaymenttransitional 391.35 standards in this section is not affected by an absence from 391.36 Minnesota for more than 30 consecutive days but fewer than 90 392.1 consecutive days, provided the assistance unit continues to 392.2 maintain a residence in Minnesota during the period of absence. 392.3 Subd. 3. [EXCEPTIONS TO THE INTERSTATE PAYMENT POLICY.] 392.4 Applicants who lived in another state in the 12 months prior to 392.5 applying for assistance are exempt from the interstate payment 392.6 policy for the months that a member of the unit: 392.7 (1) served in the United States armed services, provided 392.8 the person returned to Minnesota within 30 days of leaving the 392.9 armed forces, and intends to remain in Minnesota; 392.10 (2) attended school in another state, paid nonresident 392.11 tuition or Minnesota tuition rates under a reciprocity 392.12 agreement, provided the person left Minnesota specifically to 392.13 attend school and returned to Minnesota within 30 days of 392.14 graduation with the intent to remain in Minnesota; or 392.15 (3) meets the following criteria: 392.16 (i) a minor child or a minor caregiver moves from another 392.17 state to the residence of a relative caregiver; 392.18 (ii) the minor caregiver applies for and receives family 392.19 cash assistance; 392.20 (iii) the relative caregiver chooses not to be part of the 392.21 MFIP-S assistance unit; and 392.22 (iv) the relative caregiver has resided in Minnesota for at 392.23 least 12 months from the date the assistance unit applies for 392.24 cash assistance. 392.25 Subd. 4. [INELIGIBLE MANDATORY UNIT MEMBERS.] Ineligible 392.26 mandatory unit members who have resided in Minnesota for 12 392.27 months immediately before the unit's date of application 392.28 establish the other assistance unit members' eligibility for the 392.29MFIP-SMFIP transitional standard, shared household or family 392.30 wage level, whichever is applicable. 392.31 Sec. 47. Minnesota Statutes 1998, section 256J.45, 392.32 subdivision 1, is amended to read: 392.33 Subdivision 1. [COUNTY AGENCY TO PROVIDE ORIENTATION.] A 392.34 county agency must provide eachMFIP-SMFIP caregiver who is not 392.35 exempt under section 256J.56, paragraph (a), clause (6) or (8), 392.36 with a face-to-face orientation.The caregiver must attend the393.1orientation.The county agency must informthe caregiver393.2 caregivers who are not exempt under section 256J.56, paragraph 393.3 (a), clause (6) or (8), that failure to attend the orientation 393.4 is considered an occurrence of noncompliance with program 393.5 requirements, and will result in the imposition of a sanction 393.6 under section 256J.46. If the client complies with the 393.7 orientation requirement prior to the first day of the month in 393.8 which the grant reduction is proposed to occur, the orientation 393.9 sanction shall be lifted. 393.10 Sec. 48. Minnesota Statutes 1998, section 256J.45, is 393.11 amended by adding a subdivision to read: 393.12 Subd. 1a. [PREGNANT AND PARENTING MINORS.] Pregnant and 393.13 parenting minors who are complying with the provisions of 393.14 section 256J.54 are exempt from the requirement under 393.15 subdivision 1, however, the county agency must provide 393.16 information to the minor as required under section 256J.14. 393.17 Sec. 49. Minnesota Statutes 1998, section 256J.46, 393.18 subdivision 1, is amended to read: 393.19 Subdivision 1. [SANCTIONS FOR PARTICIPANTS NOT COMPLYING 393.20 WITH PROGRAM REQUIREMENTS.] (a) A participant who fails without 393.21 good cause to comply with the requirements of this chapter, and 393.22 who is not subject to a sanction under subdivision 2, shall be 393.23 subject to a sanction as provided in this subdivision. 393.24 A sanction under this subdivision becomes effective the 393.25 month following the month in which a required notice is given. 393.26 A sanction must not be imposed when a participant comes into 393.27 compliance with the requirements for orientation under section 393.28 256J.45 or third-party liability for medical services under 393.29 section 256J.30, subdivision 10, prior to the effective date of 393.30 the sanction. A sanction must not be imposed when a participant 393.31 comes into compliance with the requirements for employment and 393.32 training services under sections 256J.49 to 256J.72 ten days 393.33 prior to the effective date of the sanction. For purposes of 393.34 this subdivision, each month that a participant fails to comply 393.35 with a requirement of this chapter shall be considered a 393.36 separate occurrence of noncompliance. A participant who has had 394.1 one or more sanctions imposed must remain in compliance with the 394.2 provisions of this chapter for six months in order for a 394.3 subsequent occurrence of noncompliance to be considered a first 394.4 occurrence. 394.5 (b) Sanctions for noncompliance shall be imposed as follows: 394.6 (1) For the first occurrence of noncompliance by a 394.7 participant in a single-parent household or by one participant 394.8 in a two-parent household, the assistance unit's grant shall be 394.9 reduced by ten percent of theMFIP-S transitionalMFIP standard,394.10the shared household standard, or the interstate transitional394.11standardof need for an assistance unit of the same size,394.12whichever is applicable,with the residual grant paid to the 394.13 participant. The reduction in the grant amount must be in 394.14 effect for a minimum of one month and shall be removed in the 394.15 month following the month that the participant returns to 394.16 compliance. 394.17 (2) For a second or subsequent occurrence of noncompliance, 394.18 or when both participants in a two-parent household are out of 394.19 compliance at the same time, the assistance unit's shelter costs 394.20 shall be vendor paid up to the amount of the cash portion of the 394.21MFIP-SMFIP grant for which the participant's assistance unit is 394.22 eligible. At county option, the assistance unit's utilities may 394.23 also be vendor paid up to the amount of the cash portion of the 394.24MFIP-SMFIP grant remaining after vendor payment of the 394.25 assistance unit's shelter costs. The residual amount of the 394.26 grant after vendor payment, if any, must be reduced by an amount 394.27 equal to 30 percent of theMFIP-S transitionalMFIP standard,394.28the shared household standard, or the interstate transitional394.29standardof need for an assistance unit of the same size,394.30whichever is applicable,before the residual grant is paid to 394.31 the assistance unit. The reduction in the grant amount must be 394.32 in effect for a minimum of one month and shall be removed in the 394.33 month following the month that a participant in a one-parent 394.34 household returns to compliance. In a two-parent household, the 394.35 grant reduction must be in effect for a minimum of one month and 394.36 shall be removed in the month following the month both 395.1 participants return to compliance. The vendor payment of 395.2 shelter costs and, if applicable, utilities shall be removed six 395.3 months after the month in which the participant or participants 395.4 return to compliance. 395.5 (c) No later than during the second month that a sanction 395.6 under paragraph (b), clause (2), is in effect due to 395.7 noncompliance with employment services, the participant's case 395.8 file must be reviewed to determine if: 395.9 (i) the continued noncompliance can be explained and 395.10 mitigated by providing a needed preemployment activity, as 395.11 defined in section 256J.49, subdivision 13, clause (16); 395.12 (ii) the participant qualifies for a good cause exception 395.13 under section 256J.57; or 395.14 (iii) the participant qualifies for an exemption under 395.15 section 256J.56. 395.16 If the lack of an identified activity can explain the 395.17 noncompliance, the county must work with the participant to 395.18 provide the identified activity, and the county must restore the 395.19 participant's grant amount to the full amount for which the 395.20 assistance unit is eligible. The grant must be restored 395.21 retroactively to the first day of the month in which the 395.22 participant was found to lack preemployment activities or to 395.23 qualify for an exemption or good cause exception. 395.24 If the participant is found to qualify for a good cause 395.25 exception or an exemption, the county must restore the 395.26 participant's grant to the full amount for which the assistance 395.27 unit is eligible. 395.28 Sec. 50. Minnesota Statutes 1998, section 256J.46, 395.29 subdivision 2, is amended to read: 395.30 Subd. 2. [SANCTIONS FOR REFUSAL TO COOPERATE WITH SUPPORT 395.31 REQUIREMENTS.] The grant of anMFIP-SMFIP caregiver who refuses 395.32 to cooperate, as determined by the child support enforcement 395.33 agency, with support requirements under section 256.741, shall 395.34 be subject to sanction as specified in this subdivision. The 395.35 assistance unit's grant must be reduced by 25 percent of the 395.36 applicabletransitionalMFIP standard of need. The residual 396.1 amount of the grant, if any, must be paid to the caregiver. A 396.2 sanction under this subdivision becomes effective the first 396.3 month following the month in which a required notice is given. 396.4 A sanction must not be imposed when a caregiver comes into 396.5 compliance with the requirements under section 256.741 prior to 396.6 the effective date of the sanction. The sanction shall be 396.7 removed in the month following the month that the caregiver 396.8 cooperates with the support requirements. Each month that 396.9 anMFIP-SMFIP caregiver fails to comply with the requirements 396.10 of section 256.741 must be considered a separate occurrence of 396.11 noncompliance. AnMFIP-SMFIP caregiver who has had one or more 396.12 sanctions imposed must remain in compliance with the 396.13 requirements of section 256.741 for six months in order for a 396.14 subsequent sanction to be considered a first occurrence. 396.15 Sec. 51. Minnesota Statutes 1998, section 256J.46, 396.16 subdivision 2a, is amended to read: 396.17 Subd. 2a. [DUAL SANCTIONS.] (a) Notwithstanding the 396.18 provisions of subdivisions 1 and 2, for a participant subject to 396.19 a sanction for refusal to comply with child support requirements 396.20 under subdivision 2 and subject to a concurrent sanction for 396.21 refusal to cooperate with other program requirements under 396.22 subdivision 1, sanctions shall be imposed in the manner 396.23 prescribed in this subdivision. 396.24 A participant who has had one or more sanctions imposed 396.25 under this subdivision must remain in compliance with the 396.26 provisions of this chapter for six months in order for a 396.27 subsequent occurrence of noncompliance to be considered a first 396.28 occurrence. Any vendor payment of shelter costs or utilities 396.29 under this subdivision must remain in effect for six months 396.30 after the month in which the participant is no longer subject to 396.31 sanction under subdivision 1. 396.32 (b) If the participant was subject to sanction for: 396.33 (i) noncompliance under subdivision 1 before being subject 396.34 to sanction for noncooperation under subdivision 2; or 396.35 (ii) noncooperation under subdivision 2 before being 396.36 subject to sanction for noncompliance under subdivision 1; 397.1 the participant shall be sanctioned as provided in subdivision 397.2 1, paragraph (b), clause (2), and the requirement that the 397.3 county conduct a review as specified in subdivision 1, paragraph 397.4 (c), remains in effect. 397.5 (c) A participant who first becomes subject to sanction 397.6 under both subdivisions 1 and 2 in the same month is subject to 397.7 sanction as follows: 397.8 (i) in the first month of noncompliance and noncooperation, 397.9 the participant's grant must be reduced by 25 percent of the 397.10 applicabletransitionalMFIP standard of need, with any residual 397.11 amount paid to the participant; 397.12 (ii) in the second and subsequent months of noncompliance 397.13 and noncooperation, the participant shall be sanctioned as 397.14 provided in subdivision 1, paragraph (b), clause (2). 397.15 The requirement that the county conduct a review as 397.16 specified in subdivision 1, paragraph (c), remains in effect. 397.17 (d) A participant remains subject to sanction under 397.18 subdivision 2 if the participant: 397.19 (i) returns to compliance and is no longer subject to 397.20 sanction under subdivision 1; or 397.21 (ii) has the sanction under subdivision 1, paragraph (b), 397.22 removed upon completion of the review under subdivision 1, 397.23 paragraph (c). 397.24 A participant remains subject to sanction under subdivision 397.25 1, paragraph (b), if the participant cooperates and is no longer 397.26 subject to sanction under subdivision 2. 397.27 Sec. 52. Minnesota Statutes 1998, section 256J.47, 397.28 subdivision 4, is amended to read: 397.29 Subd. 4. [INELIGIBILITY FORMFIP-SMFIP; EMERGENCY 397.30 ASSISTANCE; AND EMERGENCY GENERAL ASSISTANCE.] Upon receipt of 397.31 diversionary assistance, the family is ineligible forMFIP-S397.32 MFIP, emergency assistance, and emergency general assistance for 397.33 a period of time. To determine the period of ineligibility, the 397.34 county shall use the following formula: regardless of household 397.35 changes, the county agency must calculate the number of days of 397.36 ineligibility by dividing the diversionary assistance issued by 398.1 thetransitionalMFIP standard of need a family of the same size 398.2 and composition would have received underMFIP-S, or if398.3applicable the interstate transitional standard,MFIP multiplied 398.4 by 30, truncating the result. The ineligibility period begins 398.5 the date the diversionary assistance is issued. 398.6 Sec. 53. Minnesota Statutes 1998, section 256J.48, 398.7 subdivision 2, is amended to read: 398.8 Subd. 2. [ELIGIBILITY.] Notwithstanding other eligibility 398.9 provisions of this chapter, any family without resources 398.10 immediately available to meet emergency needs identified in 398.11 subdivision 3 shall be eligible for an emergency grant under the 398.12 following conditions: 398.13 (1) a family member has resided in this state for at least 398.14 30 days; 398.15 (2) the family is without resources immediately available 398.16 to meet emergency needs; 398.17 (3) assistance is necessary to avoid destitution or provide 398.18 emergency shelter arrangements; 398.19 (4) the family's destitution or need for shelter or 398.20 utilities did not arise because the assistance unit is under 398.21 sanction, the caregiver is disqualified, or the child or 398.22 relative caregiver refused without good cause under section 398.23 256J.57 to accept employment or training for employment in this 398.24 state or another state; and 398.25 (5) at least one child or pregnant woman in the emergency 398.26 assistance unit meetsMFIP-SMFIP citizenship requirements in 398.27 section 256J.11. 398.28 Sec. 54. Minnesota Statutes 1998, section 256J.48, 398.29 subdivision 3, is amended to read: 398.30 Subd. 3. [EMERGENCY NEEDS.] Emergency needs are limited to 398.31 the following: 398.32 (a) [RENT.] A county agency may deny assistance to prevent 398.33 eviction from rented or leased shelter of an otherwise eligible 398.34 applicant when the county agency determines that an applicant's 398.35 anticipated income will not cover continued payment for shelter, 398.36 subject to conditions in clauses (1) to (3): 399.1 (1) a county agency must not deny assistance when an 399.2 applicant can document that the applicant is unable to locate 399.3 habitable shelter, unless the county agency can document that 399.4 one or more habitable shelters are available in the community 399.5 that will result in at least a 20 percent reduction in monthly 399.6 expense for shelter and that this shelter will be cost-effective 399.7 for the applicant; 399.8 (2) when no alternative shelter can be identified by either 399.9 the applicant or the county agency, the county agency shall not 399.10 deny assistance because anticipated income will not cover rental 399.11 obligation; and 399.12 (3) when cost-effective alternative shelter is identified, 399.13 the county agency shall issue assistance for moving expenses as 399.14 provided in paragraph (e). 399.15 (b) [DEFINITIONS.] For purposes of paragraph (a), the 399.16 following definitions apply (1) "metropolitan statistical area" 399.17 is as defined by the United States Census Bureau; (2) 399.18 "alternative shelter" includes any shelter that is located 399.19 within the metropolitan statistical area containing the county 399.20 and for which the applicant is eligible, provided the applicant 399.21 does not have to travel more than 20 miles to reach the shelter 399.22 and has access to transportation to the shelter. Clause (2) 399.23 does not apply to counties in the Minneapolis-St. Paul 399.24 metropolitan statistical area. 399.25 (c) [MORTGAGE AND CONTRACT FOR DEED ARREARAGES.] A county 399.26 agency shall issue assistance for mortgage or contract for deed 399.27 arrearages on behalf of an otherwise eligible applicant 399.28 according to clauses (1) to (4): 399.29 (1) assistance for arrearages must be issued only when a 399.30 home is owned, occupied, and maintained by the applicant; 399.31 (2) assistance for arrearages must be issued only when no 399.32 subsequent foreclosure action is expected within the 12 months 399.33 following the issuance; 399.34 (3) assistance for arrearages must be issued only when an 399.35 applicant has been refused refinancing through a bank or other 399.36 lending institution and the amount payable, when combined with 400.1 any payments made by the applicant, will be accepted by the 400.2 creditor as full payment of the arrearage; 400.3 (4) costs paid by a family which are counted toward the 400.4 payment requirements in this clause are: principal and interest 400.5 payments on mortgages or contracts for deed, balloon payments, 400.6 homeowner's insurance payments, manufactured home lot rental 400.7 payments, and tax or special assessment payments related to the 400.8 homestead. Costs which are not counted include closing costs 400.9 related to the sale or purchase of real property. 400.10 To be eligible for assistance for costs specified in clause 400.11 (4) which are outstanding at the time of foreclosure, an 400.12 applicant must have paid at least 40 percent of the family's 400.13 gross income toward these costs in the month of application and 400.14 the 11-month period immediately preceding the month of 400.15 application. 400.16 When an applicant is eligible under clause (4), a county 400.17 agency shall issue assistance up to a maximum of four times the 400.18MFIP-SMFIPtransitionalstandard of need for a comparable 400.19 assistance unit. 400.20 (d) [DAMAGE OR UTILITY DEPOSITS.] A county agency shall 400.21 issue assistance for damage or utility deposits when necessary 400.22 to alleviate the emergency. The county may require that 400.23 assistance paid in the form of a damage deposit, less any amount 400.24 retained by the landlord to remedy a tenant's default in payment 400.25 of rent or other funds due to the landlord under a rental 400.26 agreement, or to restore the premises to the condition at the 400.27 commencement of the tenancy, ordinary wear and tear excepted, be 400.28 returned to the county when the individual vacates the premises 400.29 or be paid to the recipient's new landlord as a vendor payment. 400.30 The county may require that assistance paid in the form of a 400.31 utility deposit less any amount retained to satisfy outstanding 400.32 utility costs be returned to the county when the person vacates 400.33 the premises, or be paid for the person's new housing unit as a 400.34 vendor payment. The vendor payment of returned funds shall not 400.35 be considered a new use of emergency assistance. 400.36 (e) [MOVING EXPENSES.] A county agency shall issue 401.1 assistance for expenses incurred when a family must move to a 401.2 different shelter according to clauses (1) to (4): 401.3 (1) moving expenses include the cost to transport personal 401.4 property belonging to a family, the cost for utility connection, 401.5 and the cost for securing different shelter; 401.6 (2) moving expenses must be paid only when the county 401.7 agency determines that a move is cost-effective; 401.8 (3) moving expenses must be paid at the request of an 401.9 applicant, but only when destitution or threatened destitution 401.10 exists; and 401.11 (4) moving expenses must be paid when a county agency 401.12 denies assistance to prevent an eviction because the county 401.13 agency has determined that an applicant's anticipated income 401.14 will not cover continued shelter obligation in paragraph (a). 401.15 (f) [HOME REPAIRS.] A county agency shall pay for repairs 401.16 to the roof, foundation, wiring, heating system, chimney, and 401.17 water and sewer system of a home that is owned and lived in by 401.18 an applicant. 401.19 The applicant shall document, and the county agency shall 401.20 verify the need for and method of repair. 401.21 The payment must be cost-effective in relation to the 401.22 overall condition of the home and in relation to the cost and 401.23 availability of alternative housing. 401.24 (g) [UTILITY COSTS.] Assistance for utility costs must be 401.25 made when an otherwise eligible family has had a termination or 401.26 is threatened with a termination of municipal water and sewer 401.27 service, electric, gas or heating fuel service, refuse removal 401.28 service, or lacks wood when that is the heating source, subject 401.29 to the conditions in clauses (1) and (2): 401.30 (1) a county agency must not issue assistance unless the 401.31 county agency receives confirmation from the utility provider 401.32 that assistance combined with payment by the applicant will 401.33 continue or restore the utility; and 401.34 (2) a county agency shall not issue assistance for utility 401.35 costs unless a family paid at least eight percent of the 401.36 family's gross income toward utility costs due during the 402.1 preceding 12 months. 402.2 Clauses (1) and (2) must not be construed to prevent the 402.3 issuance of assistance when a county agency must take immediate 402.4 and temporary action necessary to protect the life or health of 402.5 a child. 402.6 (h) [SPECIAL DIETS.] Effective January 1, 1998, a county 402.7 shall pay for special diets or dietary items forMFIP-SMFIP 402.8 participants. Persons receiving emergency assistance funds for 402.9 special diets or dietary items are also eligible to receive 402.10 emergency assistance for shelter and utility emergencies, if 402.11 otherwise eligible. The need for special diets or dietary items 402.12 must be prescribed by a licensed physician. Costs for special 402.13 diets shall be determined as percentages of the allotment for a 402.14 one-person household under the Thrifty Food Plan as defined by 402.15 the United States Department of Agriculture. The types of diets 402.16 and the percentages of the Thrifty Food Plan that are covered 402.17 are as follows: 402.18 (1) high protein diet, at least 80 grams daily, 25 percent 402.19 of Thrifty Food Plan; 402.20 (2) controlled protein diet, 40 to 60 grams and requires 402.21 special products, 100 percent of Thrifty Food Plan; 402.22 (3) controlled protein diet, less than 40 grams and 402.23 requires special products, 125 percent of Thrifty Food Plan; 402.24 (4) low cholesterol diet, 25 percent of Thrifty Food Plan; 402.25 (5) high residue diet, 20 percent of Thrifty Food Plan; 402.26 (6) pregnancy and lactation diet, 35 percent of Thrifty 402.27 Food Plan; 402.28 (7) gluten-free diet, 25 percent of Thrifty Food Plan; 402.29 (8) lactose-free diet, 25 percent of Thrifty Food Plan; 402.30 (9) antidumping diet, 15 percent of Thrifty Food Plan; 402.31 (10) hypoglycemic diet, 15 percent of Thrifty Food Plan; or 402.32 (11) ketogenic diet, 25 percent of Thrifty Food Plan. 402.33 Sec. 55. Minnesota Statutes 1998, section 256J.50, 402.34 subdivision 1, is amended to read: 402.35 Subdivision 1. [EMPLOYMENT AND TRAINING SERVICES COMPONENT 402.36 OFMFIP-SMFIP.] (a) By January 1, 1998, each county must 403.1 develop and implement an employment and training services 403.2 component ofMFIP-SMFIP which is designed to put participants 403.3 on the most direct path to unsubsidized employment. 403.4 Participation in these services is mandatory for allMFIP-SMFIP 403.5 caregivers, unless the caregiver is exempt under section 256J.56. 403.6 (b)A county may provide employment and training services403.7to MFIP-S caregivers who are exempt from the employment and403.8training services component but volunteer for the services.A 403.9 county must provide employment and training services under 403.10 sections 256J.515 to 256J.74 within 30 days after the 403.11 caregiver's participation becomes mandatory under subdivision 5. 403.12 Sec. 56. Minnesota Statutes 1998, section 256J.515, is 403.13 amended to read: 403.14 256J.515 [OVERVIEW OF EMPLOYMENT AND TRAINING SERVICES.] 403.15 During the first meeting with participants, job counselors 403.16 must ensure that an overview of employment and training services 403.17 is provided that: 403.18 (1) stresses the necessity and opportunity of immediate 403.19 employment; 403.20 (2) outlines the job search resources offered; 403.21 (3) outlines education or training opportunities available; 403.22 (4) describes the range of work activities, including 403.23 activities under section 256J.49, subdivision 13, clause (18), 403.24 that are allowable under MFIP-S to meet the individual needs of 403.25 participants; 403.26 (5) explains the requirements to comply with an employment 403.27 plan; 403.28 (6) explains the consequences for failing to comply; and 403.29 (7) explains the services that are available to support job 403.30 search and work and education. 403.31 Failure to attend the overview of employment and training 403.32 services without good cause results in the imposition of a 403.33 sanction under section 256J.46. 403.34 Sec. 57. Minnesota Statutes 1998, section 256J.52, 403.35 subdivision 1, is amended to read: 403.36 Subdivision 1. [APPLICATION LIMITED TO CERTAIN 404.1 PARTICIPANTS.] This section applies to participants receiving 404.2MFIP-SMFIP assistance who are not exempt under section 256J.56, 404.3 and to caregivers who volunteer for employment and training 404.4 servicesunder section 256J.50. 404.5 Sec. 58. Minnesota Statutes 1998, section 256J.52, 404.6 subdivision 3, is amended to read: 404.7 Subd. 3. [JOB SEARCH; JOB SEARCH SUPPORT PLAN.] (a) If, 404.8 after the initial assessment, the job counselor determines that 404.9 the participant possesses sufficient skills that the participant 404.10 is likely to succeed in obtaining suitable employment, the 404.11 participant must conduct job search for a period of up to eight 404.12 weeks, for at least 30 hours per week. The participant must 404.13 accept any offer of suitable employment. Upon agreement by the 404.14 job counselor and the participant, a job search support plan may 404.15 limit a job search to jobs that are consistent with the 404.16 participant's employment goal. The job counselor and 404.17 participant must develop a job search support plan which 404.18 specifies, at a minimum: whether the job search is to be 404.19 supervised or unsupervised; support services that will be 404.20 provided while the participant conducts job search activities; 404.21 the courses necessary to obtain certification or licensure, if 404.22 applicable, and after obtaining the license or certificate, the 404.23 client must comply with subdivision 5; and how frequently the 404.24 participant must report to the job counselor on the status of 404.25 the participant's job search activities. The job search support 404.26 plan may also specify that the participant fulfill a specified 404.27 portion of the required hours of job search through attending 404.28 adult basic education or English as a second language classes. 404.29 (b) During the eight-week job search period, either the job 404.30 counselor or the participant may request a review of the 404.31 participant's job search plan and progress towards obtaining 404.32 suitable employment. If a review is requested by the 404.33 participant, the job counselor must concur that the review is 404.34 appropriate for the participant at that time. If a review is 404.35 conducted, the job counselor may make a determination to conduct 404.36 a secondary assessment prior to the conclusion of the job search. 405.1 (c) Failure to conduct the required job search, to accept 405.2 any offer of suitable employment, to develop or comply with a 405.3 job search support plan, or voluntarily quitting suitable 405.4 employment without good cause results in the imposition of a 405.5 sanction under section 256J.46. If at the end of eight weeks 405.6 the participant has not obtained suitable employment, the job 405.7 counselor must conduct a secondary assessment of the participant 405.8 under subdivision 3. 405.9 Sec. 59. Minnesota Statutes 1998, section 256J.52, 405.10 subdivision 4, is amended to read: 405.11 Subd. 4. [SECONDARY ASSESSMENT.] (a) The job counselor 405.12 must conduct a secondary assessment for those participants who: 405.13 (1) in the judgment of the job counselor, have barriers to 405.14 obtaining employment that will not be overcome with a job search 405.15 support plan under subdivision 3; 405.16 (2) have completed eight weeks of job search under 405.17 subdivision 3 without obtaining suitable employment; 405.18 (3) have not received a secondary assessment, are working 405.19 at least 20 hours per week, and the participant, job counselor, 405.20 or county agency requests a secondary assessment; or 405.21 (4) have an existing job search plan or employment plan 405.22 developed for another program or are already involved in 405.23 training or education activities under section 256J.55, 405.24 subdivision 5. 405.25 (b) In the secondary assessment the job counselor must 405.26 evaluate the participant's skills and prior work experience, 405.27 family circumstances, interests and abilities, need for 405.28 preemployment activities, supportive or educational services, 405.29 and the extent of any barriers to employment. Failure to 405.30 complete a secondary assessment shall result in the imposition 405.31 of a sanction as specified in sections 256J.46 and 256J.57. The 405.32 job counselor must use the information gathered through the 405.33 secondary assessment to develop an employment plan under 405.34 subdivision 5. 405.35 (c) In the secondary assessment the job counselor may 405.36 require the participant to complete an appropriate and 406.1 culturally competent professional chemical use assessment to be 406.2 performed according to the rules adopted under section 254A.03, 406.3 subdivision 3, or a professional psychological assessment as a 406.4 component of the secondary assessment, when the job counselor 406.5 has a reasonable belief, based on objective evidence, that a 406.6 participant's ability to obtain and retain suitable employment 406.7 is impaired by a medical condition. The job counselor must 406.8 ensure that appropriate services, including child care 406.9 assistance and transportation, are available to the participant 406.10 to meet needs identified by the assessment. Data gathered as 406.11 part of a professional assessment must be classified and 406.12 disclosed according to the provisions in section 13.46. 406.13 (d) The provider shall make available to participants 406.14 information regarding additional vendors or resources which 406.15 provide employment and training services that may be available 406.16 to the participant under a plan developed under this 406.17 section. At a minimum, the provider must make available 406.18 information on the following resources: business and higher 406.19 education partnerships operated under the Minnesota job skills 406.20 partnership, community and technical colleges, adult basic 406.21 education programs, and services offered by vocational 406.22 rehabilitation programs. The information must include a brief 406.23 summary of services provided and related performance 406.24 indicators. Performance indicators must include, but are not 406.25 limited to, the average time to complete program offerings, 406.26 placement rates, entry and average wages, and retention rates. 406.27 To be included in the information given to participants, a 406.28 vendor or resource must provide counties with relevant 406.29 information in the format required by the county. 406.30 Sec. 60. Minnesota Statutes 1998, section 256J.52, 406.31 subdivision 5, is amended to read: 406.32 Subd. 5. [EMPLOYMENT PLAN; CONTENTS.] Based on the 406.33 secondary assessment under subdivision 4, the job counselor and 406.34 the participant must develop an employment plan for the 406.35 participant that includes specific activities that are tied to 406.36 an employment goal and a plan for long-term self-sufficiency, 407.1 and that is designed to move the participant along the most 407.2 direct path to unsubsidized employment. The employment plan 407.3 must list the specific steps that will be taken to obtain 407.4 employment and a timetable for completion of each of the steps. 407.5 Upon agreement by the job counselor and the participant, the 407.6 employment plan may limit a job search to jobs that are 407.7 consistent with the participant's employment goal. As part of 407.8 the development of the participant's employment plan, the 407.9 participant shall have the option of selecting from among the 407.10 vendors or resources that the job counselor determines will be 407.11 effective in supplying one or more of the services necessary to 407.12 meet the employment goals specified in the participant's plan. 407.13 In compiling the list of vendors and resources that the job 407.14 counselor determines would be effective in meeting the 407.15 participant's employment goals, the job counselor must determine 407.16 that adequate financial resources are available for the vendors 407.17 or resources ultimately selected by the participant. The job 407.18 counselor and the participant must sign the developed plan to 407.19 indicate agreement between the job counselor and the participant 407.20 on the contents of the plan. 407.21 Sec. 61. Minnesota Statutes 1998, section 256J.52, is 407.22 amended by adding a subdivision to read: 407.23 Subd. 5a. [BASIC EDUCATION ACTIVITIES IN 407.24 PLAN.] Participants with low skills in reading or mathematics 407.25 who are proficient only at or below an eighth-grade level must 407.26 be allowed to include basic education activities or an English 407.27 as a second language program in a job search support plan or an 407.28 employment plan, whichever is applicable. An English as a 407.29 second language program may be included in a participant's job 407.30 search support plan or employment plan under this subdivision 407.31 for as long as the participant is making satisfactory progress 407.32 in the program and the participant's lack of proficiency in 407.33 English remains a barrier to obtaining suitable employment. 407.34 Sec. 62. Minnesota Statutes 1998, section 256J.54, 407.35 subdivision 2, is amended to read: 407.36 Subd. 2. [RESPONSIBILITY FOR ASSESSMENT AND EMPLOYMENT 408.1 PLAN.] For caregivers who are under age 18 without a high school 408.2 diploma or its equivalent, the assessment under subdivision 1 408.3 and the employment plan under subdivision 3 must be completed by 408.4 the social services agency under section 257.33. For caregivers 408.5 who are age 18 or 19 without a high school diploma or its 408.6 equivalent, the assessment under subdivision 1 and the 408.7 employment plan under subdivision 3 must be completed by the job 408.8 counselor or, at county option, by the social services agency 408.9 under section 257.33. Upon reaching age 18 or 19 a caregiver 408.10 who received social services under section 257.33 and is without 408.11 a high school diploma or its equivalent has the option to choose 408.12 whether to continue receiving services under the caregiver's 408.13 plan from the social services agency or to utilize an MFIP 408.14 employment and training service provider. The social services 408.15 agency or the job counselor shall consult with representatives 408.16 of educational agencies that are required to assist in 408.17 developing educational plans under section 124D.331. 408.18 Sec. 63. Minnesota Statutes 1998, section 256J.55, 408.19 subdivision 4, is amended to read: 408.20 Subd. 4. [CHOICE OF PROVIDER.]A participantMFIP 408.21 caregivers must be able to choose from at least two employment 408.22 and training service providers, unless the county has 408.23 demonstrated to the commissioner that the provision of multiple 408.24 employment and training service providers would result in 408.25 financial hardship for the county, or the county is utilizing a 408.26 workforce center as specified in section 256J.50, subdivision 408.27 8. Both parents in a two-parent family must choose the same 408.28 employment and training service provider unless a special need, 408.29 such as bilingual services, is identified but not available 408.30 through one service provider. 408.31 Sec. 64. Minnesota Statutes 1998, section 256J.56, is 408.32 amended to read: 408.33 256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 408.34 EXEMPTIONS.] 408.35 (a) AnMFIP-SMFIP caregiver is exempt from the 408.36 requirements of sections 256J.52 to 256J.55 if the caregiver 409.1 belongs to any of the following groups: 409.2 (1) individuals who are age 60 or older; 409.3 (2) individuals who are suffering from a professionally 409.4 certified permanent or temporary illness, injury, or incapacity 409.5 which is expected to continue for more than 30 days and which 409.6 prevents the person from obtaining or retaining employment. 409.7 Persons in this category with a temporary illness, injury, or 409.8 incapacity must be reevaluated at least quarterly; 409.9 (3) caregivers whose presence in the home is required 409.10 because of the professionally certified illness or incapacity of 409.11 another member in the assistance unit, a relative in the 409.12 household, or a foster child in the household; 409.13 (4) women who are pregnant, if the pregnancy has resulted 409.14 in a professionally certified incapacity that prevents the woman 409.15 from obtaining or retaining employment; 409.16 (5) caregivers of a child under the age of one year who 409.17 personally provide full-time care for the child. This exemption 409.18 may be used for only 12 months in a lifetime. In two-parent 409.19 households, only one parent or other relative may qualify for 409.20 this exemption; 409.21 (6) individuals who are single parents, or one parent in a 409.22 two-parent family, employed at least 35 hours per week; 409.23 (7) individuals experiencing a personal or family crisis 409.24 that makes them incapable of participating in the program, as 409.25 determined by the county agency. If the participant does not 409.26 agree with the county agency's determination, the participant 409.27 may seek professional certification, as defined in section 409.28 256J.08, that the participant is incapable of participating in 409.29 the program. 409.30 Persons in this exemption category must be reevaluated 409.31 every 60 days; or 409.32 (8) second parents in two-parent families employed for 20 409.33 or more hours per week, provided the first parent is employed at 409.34 least 35 hours per week. 409.35 A caregiver who is exempt under clause (5) must enroll in 409.36 and attend an early childhood and family education class, a 410.1 parenting class, or some similar activity, if available, during 410.2 the period of time the caregiver is exempt under this section. 410.3 Notwithstanding section 256J.46, failure to attend the required 410.4 activity shall not result in the imposition of a sanction. 410.5 (b) The county agency must provide employment and training 410.6 services toMFIP-SMFIP caregivers who are exempt under this 410.7 section, but who volunteer to participate. Exempt volunteers 410.8 may request approval for any work activity under section 410.9 256J.49, subdivision 13. The hourly participation requirements 410.10 for nonexempt caregivers under section 256J.50, subdivision 5, 410.11 do not apply to exempt caregivers who volunteer to participate. 410.12 Sec. 65. Minnesota Statutes 1998, section 256J.62, 410.13 subdivision 1, is amended to read: 410.14 Subdivision 1. [ALLOCATION.] Money appropriated forMFIP-S410.15 MFIP employment and training services must be allocated to 410.16 counties and eligible tribal providers as specified in this 410.17 section. 410.18 Sec. 66. Minnesota Statutes 1998, section 256J.62, is 410.19 amended by adding a subdivision to read: 410.20 Subd. 2a. [CASELOAD-BASED FUNDS ALLOCATION.] Effective for 410.21 state fiscal year 2000, and for all subsequent years, money 410.22 shall be allocated to counties and eligible tribal providers 410.23 based on their average number of MFIP cases as a proportion of 410.24 the statewide total number of MFIP cases: 410.25 (1) the average number of cases must be based upon counts 410.26 of MFIP or tribal TANF cases as of March 31, June 30, September 410.27 30, and December 31 of the previous calendar year, less the 410.28 number of child only cases and cases where all the caregivers 410.29 are age 60 or over. Two-parent cases, with the exception of 410.30 those with a caregiver age 60 or over, will be multiplied by a 410.31 factor of two; 410.32 (2) the MFIP or tribal TANF case count for each eligible 410.33 tribal provider shall be based upon the number of MFIP or tribal 410.34 TANF cases who are enrolled in, or are eligible for enrollment 410.35 in the tribe; and the case must be an active MFIP case; and the 410.36 case members must reside within the tribal program's service 411.1 delivery area; 411.2 (3) MFIP or tribal TANF cases counted for determining 411.3 allocations to tribal providers shall be removed from the case 411.4 counts of the respective counties where they reside to prevent 411.5 duplicate counts; and 411.6 (4) prior to allocating funds to counties and tribal 411.7 providers, $1,000,000 shall be set aside to allow the 411.8 commissioner to use these set-aside funds to provide funding to 411.9 county or tribal providers who experience an unforeseen influx 411.10 of participants or other emergent situations beyond their 411.11 control. 411.12 Any funds specified in this paragraph that remain unspent by 411.13 March 31 of each year shall be reallocated out to county and 411.14 tribal providers using the funding formula detailed in clauses 411.15 (1) to (4). 411.16 Sec. 67. Minnesota Statutes 1998, section 256J.62, 411.17 subdivision 6, is amended to read: 411.18 Subd. 6. [BILINGUAL EMPLOYMENT AND TRAINING SERVICES TO 411.19 REFUGEES.] Funds appropriated to cover the costs of bilingual 411.20 employment and training services to refugees shall be allocated 411.21 to county agencies as follows: 411.22 (1) for state fiscal year 1998, the allocation shall be 411.23 based on the county's proportion of the total statewide number 411.24 of AFDC refugee cases in the previous fiscal year. Counties 411.25 with less than one percent of the statewide number of AFDC, 411.26 MFIP-R, or MFIP refugee cases shall not receive an allocation of 411.27 bilingual employment and training services funds; and 411.28 (2) for each subsequent fiscal year, the allocation shall 411.29 be based on the county's proportion of the total statewide 411.30 number ofMFIP-SMFIP refugee cases in the previous fiscal year. 411.31 Counties with less than one percent of the statewide number of 411.32MFIP-SMFIP refugee cases shall not receive an allocation of 411.33 bilingual employment and training services funds. 411.34 Sec. 68. Minnesota Statutes 1998, section 256J.62, 411.35 subdivision 7, is amended to read: 411.36 Subd. 7. [WORK LITERACY LANGUAGE PROGRAMS.] Funds 412.1 appropriated to cover the costs of work literacy language 412.2 programs to non-English-speaking recipients shall be allocated 412.3 to county agencies as follows: 412.4 (1) for state fiscal year 1998, the allocation shall be 412.5 based on the county's proportion of the total statewide number 412.6 of AFDC or MFIP cases in the previous fiscal year where the lack 412.7 of English is a barrier to employment. Counties with less than 412.8 two percent of the statewide number of AFDC or MFIP cases where 412.9 the lack of English is a barrier to employment shall not receive 412.10 an allocation of the work literacy language program funds; and 412.11 (2) for each subsequent fiscal year, the allocation shall 412.12 be based on the county's proportion of the total statewide 412.13 number ofMFIP-SMFIP cases in the previous fiscal year where 412.14 the lack of English is a barrier to employment. Counties with 412.15 less than two percent of the statewide number ofMFIP-SMFIP 412.16 cases where the lack of English is a barrier to employment shall 412.17 not receive an allocation of the work literacy language program 412.18 funds. 412.19 Sec. 69. Minnesota Statutes 1998, section 256J.62, 412.20 subdivision 8, is amended to read: 412.21 Subd. 8. [REALLOCATION.] The commissioner of human 412.22 services shall review county agency expenditures ofMFIP-SMFIP 412.23 employment and training services funds at the end of the third 412.24 quarter of the first year of the biennium and each quarter after 412.25 that and may reallocate unencumbered or unexpended money 412.26 appropriated under this section to those county agencies that 412.27 can demonstrate a need for additional money. 412.28 Sec. 70. Minnesota Statutes 1998, section 256J.62, 412.29 subdivision 9, is amended to read: 412.30 Subd. 9. [CONTINUATION OF CERTAIN SERVICES.] At the 412.31 request of the caregiver, the county may continue to provide 412.32 case management, counseling or other support services to a 412.33 participant following the participant's achievement of the 412.34 employment goal, for up tosix12 months following termination 412.35 of the participant's eligibility forMFIP-SMFIP. 412.36 A county may expend funds for a specific employment and 413.1 training service for the duration of that service to a 413.2 participant if the funds are obligated or expended prior to the 413.3 participant losingMFIP-SMFIP eligibility. 413.4 Sec. 71. Minnesota Statutes 1998, section 256J.67, 413.5 subdivision 4, is amended to read: 413.6 Subd. 4. [EMPLOYMENT PLAN.] (a) The caretaker's employment 413.7 plan must include the length of time needed in the work 413.8 experience program, the need to continue job-seeking activities 413.9 while participating in work experience, and the caregiver's 413.10 employment goals. 413.11 (b) After each six months of a caregiver's participation in 413.12 a work experience job placement, and at the conclusion of each 413.13 work experience assignment under this section, the county agency 413.14 shall reassess and revise, as appropriate, the caregiver's 413.15 employment plan. 413.16 (c) A caregiver may claim good cause under section 256J.57, 413.17 subdivision 1, for failure to cooperate with a work experience 413.18 job placement. 413.19 (d) The county agency shall limit the maximum number of 413.20 hours any participant may work under this section to the amount 413.21 of thetransitionalMFIP standard of need divided by the federal 413.22 or applicable state minimum wage, whichever is higher. After a 413.23 participant has been assigned to a position for nine months, the 413.24 participant may not continue in that assignment unless the 413.25 maximum number of hours a participant works is no greater than 413.26 the amount of thetransitionalMFIP standard of need divided by 413.27 the rate of pay for individuals employed in the same or similar 413.28 occupations by the same employer at the same site. This limit 413.29 does not apply if it would prevent a participant from counting 413.30 toward the federal work participation rate. 413.31 Sec. 72. Minnesota Statutes 1998, section 256J.74, 413.32 subdivision 2, is amended to read: 413.33 Subd. 2. [CONCURRENT ELIGIBILITY, LIMITATIONS.] (a) An 413.34 individual whose needs have been otherwise provided for in 413.35 another state, in whole or in part by county, state, or federal 413.36 dollars during a month, is ineligible to receive MFIP for the 414.1 month. 414.2 (b) A county agency must not count an applicant or 414.3 participant as a member of more than one assistance unit in this 414.4 state in a given payment month, except as provided in clauses 414.5 (1) and (2). 414.6 (1) A participant who is a member of an assistance unitin414.7this stateis eligible to be included in a second assistance 414.8 unit thefirst fullmonth after the month the participant joins 414.9 the second unit. 414.10 (2) An applicant whose needs are met through federal, 414.11 state, or local foster carethat is reimbursed under title IV-E414.12of the Social Security Actpayments for the first part of an 414.13 application month is eligible to receive assistance for the 414.14 remaining part of the month in which the applicant returns 414.15 home.Title IV-EFoster care paymentsand adoption assistance414.16paymentsmust be considered prorated payments rather than a 414.17 duplication ofMFIP-SMFIP need. 414.18 Sec. 73. [256J.751] [COUNTY PERFORMANCE MANAGEMENT.] 414.19 (a) From July 1, 1999, to June 30, 2001, the commissioner 414.20 shall report quarterly to all counties each county's performance 414.21 on the following measures: 414.22 (1) percent of MFIP caseload working in paid employment; 414.23 (2) percent of MFIP caseload receiving only the food 414.24 portion of assistance; 414.25 (3) number of MFIP cases that have left assistance; 414.26 (4) federal participation requirements as specified in 414.27 title 1 of Public Law Number 104-193; and 414.28 (5) median placement wage. 414.29 (b) By January 1, 2000, the commissioner shall, in 414.30 consultation with counties, develop measures for county 414.31 performance in addition to those in paragraph (a). In 414.32 developing these measures, the commissioner must consider: 414.33 (1) a measure for MFIP cases that leave assistance due to 414.34 employment; 414.35 (2) job retention after participants leave MFIP; 414.36 (3) participant's earnings at a follow-up point after the 415.1 participant has left MFIP; and 415.2 (4) customer satisfaction, including participant and 415.3 employer satisfaction. 415.4 (c) If sanctions occur for failure to meet the performance 415.5 standards specified in title 1 of Public Law Number 104-193 of 415.6 the Personal Responsibility and Work Opportunity Act of 1996, 415.7 the state shall pay 88 percent of the sanction. The remaining 415.8 12 percent of the sanction will be paid by the counties. The 415.9 county portion of the sanction will be distributed across all 415.10 counties in proportion to each county's percentage of the MFIP 415.11 average monthly caseload during the period for which the 415.12 sanction was applied. 415.13 (d) If a county fails to meet the performance standards 415.14 specified in title 1 of Public Law Number 104-193 of the 415.15 Personal Responsibility and Work Opportunity Act of 1996 for any 415.16 year, the commissioner shall work with counties to organize a 415.17 joint state-county technical assistance team to work with the 415.18 county. The commissioner shall coordinate any technical 415.19 assistance with other departments and agencies including the 415.20 departments of economic security and children, families, and 415.21 learning as necessary to achieve the purpose of this paragraph. 415.22 Sec. 74. Minnesota Statutes 1998, section 256J.76, 415.23 subdivision 1, is amended to read: 415.24 Subdivision 1. [ADMINISTRATIVE FUNCTIONS.] Beginning July 415.25 1, 1997, counties will receive federal funds from the TANF block 415.26 grant for use in supporting eligibility, fraud control, and 415.27 other related administrative functions. The federal funds 415.28 available for distribution, as determined by the commissioner, 415.29 must be an amount equal to federal administrative aid 415.30 distributed for fiscal year 1996 under titles IV-A and IV-F of 415.31 the Social Security Act in effect prior to October 1, 1996. 415.32 This amount must include the amount paid for local 415.33 collaboratives under sections 245.4932 and 256F.13, but must not 415.34 include administrative aid associated with child care under 415.35 section 119B.05, with emergency assistance intensive family 415.36 preservation services under section 256.8711, with 416.1 administrative activities as part of the employment and training 416.2 services under section 256.736, or with fraud prevention 416.3 investigation activities under section 256.983. Before July 15, 416.4 1999, a county may ask for a review of the commissioner's 416.5 determination where the county believes fiscal year 1996 416.6 information was inaccurate or incomplete. By August 15, 1999, 416.7 the commissioner must adjust that county's base when the 416.8 commissioner has determined that inaccurate or incomplete 416.9 information was used to develop that base. The commissioner 416.10 shall adjust the county's 1999 allocation amount to reflect the 416.11 base change. 416.12 Sec. 75. Minnesota Statutes 1998, section 256J.76, 416.13 subdivision 2, is amended to read: 416.14 Subd. 2. [ALLOCATION OF COUNTY FUNDS.] (a) The 416.15 commissioner shall determine and allocate the funds available to 416.16 each county, on a calendar year basis, proportional to the 416.17 amount paid to each county for fiscal year 1996, excluding the 416.18 amount paid for local collaboratives under sections 245.4932 and 416.19 256F.13. For the period beginning July 1, 1997, and ending 416.20 December 31, 1998, each county shall receive 150 percent of its 416.21 base year allocation. 416.22 (b) Beginning January 1, 2000, the commissioner shall 416.23 allocate funds made available under this section on a calendar 416.24 year basis to each county first, in amounts equal to each 416.25 county's guaranteed floor as described in clause (1), second, to 416.26 provide an allocation of up to $2,000 to each county as provided 416.27 for in clause (2), and third, any remaining funds shall be 416.28 allocated in proportion to the sum of each county's average 416.29 monthly MFIP cases plus ten percent of each county's average 416.30 monthly MFIP recipients with budgeted earnings as determined by 416.31 the most recent calendar year data available. 416.32 (1) Each county's guaranteed floor shall be calculated as 416.33 follows: 416.34 (i) 90 percent of that county's allocation in the preceding 416.35 calendar year; or 416.36 (ii) when the amount of funds available is less than the 417.1 guaranteed floor, each county's allocation shall be equal to the 417.2 previous calendar year allocation reduced by the same percentage 417.3 that the statewide allocation was reduced. 417.4 (2) Each county shall be allocated up to $2,000. If, after 417.5 application of the guaranteed floor, funds are insufficient to 417.6 provide $2,000 per county, each county's allocation under this 417.7 clause shall be an equal share of remaining funds available. 417.8 Sec. 76. Minnesota Statutes 1998, section 256J.76, 417.9 subdivision 4, is amended to read: 417.10 Subd. 4. [REPORTING REQUIREMENT AND REIMBURSEMENT.] The 417.11 commissioner shall specify requirements for reporting according 417.12 to section 256.01, subdivision 2, paragraph (17). Each county 417.13 shall be reimbursed at a rate of 50 percent of eligible 417.14 expenditures up to the limit of its allocation. The 417.15 commissioner shall regularly review each county's eligible 417.16 expenditures compared to its allocation. The commissioner may 417.17 reallocate funds at any time, from counties which have not or 417.18 will not have expended their allocations, to counties that have 417.19 eligible expenditures in excess of their allocation. 417.20 Sec. 77. [256J.80] [TRUANCY PREVENTION PROGRAM.] 417.21 Subdivision 1. [PILOT PROJECTS.] The commissioner of human 417.22 services, in consultation with the commissioner of children, 417.23 families, and learning, shall develop a truancy prevention pilot 417.24 program to prevent tardiness and ensure school attendance of 417.25 children receiving assistance under this chapter. The pilot 417.26 program shall be developed in at least two school districts, one 417.27 rural and one urban. The pilots shall be developed in voluntary 417.28 collaboration with local school districts and county social 417.29 service agencies and shall serve families on MFIP whose children 417.30 are under the age of 13 and are subject to the compulsory 417.31 attendance requirements of section 120A.22, and are frequently 417.32 tardy or are not attending school regularly, as defined by the 417.33 local school district. The program shall require the local 417.34 schools to refer these families to county social service 417.35 agencies for an assessment and development of a corrective 417.36 action plan to ensure punctual and regular school attendance by 418.1 the children in the family. The corrective action plan must 418.2 require that the children demonstrate satisfactory attendance as 418.3 defined by the local school district. Families that fail to 418.4 follow the corrective action plan shall be reported to the 418.5 county agency and may be subject to sanction under section 418.6 256J.46, subdivision 1, paragraphs (a) and (b). The 418.7 commissioner of human services may at its discretion expand the 418.8 program to other districts with the districts' agreement and 418.9 shall present a report to the legislature by November 30, 2000, 418.10 on the success of the implementation of the pilot projects 418.11 authorized by this section. 418.12 Subd. 2. [TRANSFER OF ATTENDANCE DATA.] Notwithstanding 418.13 section 13.32, the commissioners of children, families, and 418.14 learning and human services shall develop procedures to 418.15 implement the transmittal of data on student attendance, to the 418.16 extent consistent with federal law, to county social services 418.17 agencies to implement the program authorized by this section. 418.18 Sec. 78. [RECOMMENDATIONS TO 60-MONTH LIMIT.] 418.19 By January 15, 2000, the commissioner of human services 418.20 shall submit to the legislature recommendations regarding MFIP 418.21 families that include an adult caregiver who has received 60 418.22 months of cash assistance funded in whole or in part by the TANF 418.23 block grant. 418.24 Sec. 79. [PROPOSAL REQUIRED.] 418.25 By January 15, 2000, the commissioner shall submit to the 418.26 legislature a proposal for creating an MFIP incentive bonus 418.27 program for high-performing counties. The proposal must include 418.28 recommendations on how to implement a system that would provide 418.29 an incentive bonus to a county that demonstrates high 418.30 performance with respect to the county's MFIP participants, as 418.31 reflected in wage rate measures and career advancement measures 418.32 reported by the county. 418.33 Sec. 80. [ASSESSMENT PROTOCOLS.] 418.34 The commissioner of human services shall consult with 418.35 county agencies, employment and training service providers, the 418.36 commissioner of human rights, and advocates to develop protocols 419.1 to guide the implementation of Minnesota Statutes, section 419.2 256J.52, subdivision 4, paragraph (c), as amended. 419.3 Sec. 81. [FATHER PROJECT; TIME-LIMITED WAIVER OF EXISTING 419.4 STATUTORY PROVISIONS.] 419.5 The commissioner of human services shall waive the 419.6 enforcement of any existing specific statutory program 419.7 requirements, administrative rules, and standards, including the 419.8 relevant provisions of the following sections of Minnesota 419.9 Statutes: 419.10 (1) 256.741, subdivision 2, paragraph (a); 419.11 (2) 256J.30, subdivision 11; 419.12 (3) 256J.33, subdivision 4, clause (5); and 419.13 (4) 256J.34, subdivision 1, paragraph (d). 419.14 The waivers permitted under this section are for the limited 419.15 purposes of allowing the entire amount of direct child support 419.16 payments to be passed through for the children of individuals 419.17 participating in the FATHER project and excluding any direct 419.18 child support payments paid by participants in the FATHER 419.19 project as income under the MFIP program for individuals 419.20 receiving the child support payments who also receive MFIP 419.21 assistance. State dollars to offset the increased costs to the 419.22 state of implementing the waivers are available only to the 419.23 extent that they are matched on a dollar for dollar basis by 419.24 money provided by the private philanthropical community. The 419.25 waiver authority granted by this section sunsets on July 1, 2002. 419.26 Sec. 82. [REPEALER.] 419.27 Minnesota Statutes 1998, sections 256D.053, subdivision 4; 419.28 and 256J.62, subdivisions 2, 3, and 5; and Laws 1997, chapter 419.29 85, article 1, section 63, are repealed. 419.30 ARTICLE 7 419.31 CHILD SUPPORT 419.32 Section 1. Minnesota Statutes 1998, section 13.46, 419.33 subdivision 2, is amended to read: 419.34 Subd. 2. [GENERAL.] (a) Unless the data is summary data or 419.35 a statute specifically provides a different classification, data 419.36 on individuals collected, maintained, used, or disseminated by 420.1 the welfare system is private data on individuals, and shall not 420.2 be disclosed except: 420.3 (1) according to section 13.05; 420.4 (2) according to court order; 420.5 (3) according to a statute specifically authorizing access 420.6 to the private data; 420.7 (4) to an agent of the welfare system, including a law 420.8 enforcement person, attorney, or investigator acting for it in 420.9 the investigation or prosecution of a criminal or civil 420.10 proceeding relating to the administration of a program; 420.11 (5) to personnel of the welfare system who require the data 420.12 to determine eligibility, amount of assistance, and the need to 420.13 provide services of additional programs to the individual; 420.14 (6) to administer federal funds or programs; 420.15 (7) between personnel of the welfare system working in the 420.16 same program; 420.17 (8) the amounts of cash public assistance and relief paid 420.18 to welfare recipients in this state, including their names, 420.19 social security numbers, income, addresses, and other data as 420.20 required, upon request by the department of revenue to 420.21 administer the property tax refund law, supplemental housing 420.22 allowance, early refund of refundable tax credits, and the 420.23 income tax. "Refundable tax credits" means the dependent care 420.24 credit under section 290.067, the Minnesota working family 420.25 credit under section 290.0671, the property tax refund under 420.26 section 290A.04, and, if the required federal waiver or waivers 420.27 are granted, the federal earned income tax credit under section 420.28 32 of the Internal Revenue Code; 420.29 (9) between the department of human services and the 420.30 Minnesota department of economic security for the purpose of 420.31 monitoring the eligibility of the data subject for reemployment 420.32 insurance, for any employment or training program administered, 420.33 supervised, or certified by that agency, for the purpose of 420.34 administering any rehabilitation program, whether alone or in 420.35 conjunction with the welfare system, or to monitor and evaluate 420.36 the statewide Minnesota family investment program by exchanging 421.1 data on recipients and former recipients of food stamps, cash 421.2 assistance under chapter 256, 256D, 256J, or 256K, child care 421.3 assistance under chapter 119B, or medical programs under chapter 421.4 256B, 256D, or 256L; 421.5 (10) to appropriate parties in connection with an emergency 421.6 if knowledge of the information is necessary to protect the 421.7 health or safety of the individual or other individuals or 421.8 persons; 421.9 (11) data maintained by residential programs as defined in 421.10 section 245A.02 may be disclosed to the protection and advocacy 421.11 system established in this state according to Part C of Public 421.12 Law Number 98-527 to protect the legal and human rights of 421.13 persons with mental retardation or other related conditions who 421.14 live in residential facilities for these persons if the 421.15 protection and advocacy system receives a complaint by or on 421.16 behalf of that person and the person does not have a legal 421.17 guardian or the state or a designee of the state is the legal 421.18 guardian of the person; 421.19 (12) to the county medical examiner or the county coroner 421.20 for identifying or locating relatives or friends of a deceased 421.21 person; 421.22 (13) data on a child support obligor who makes payments to 421.23 the public agency may be disclosed to the higher education 421.24 services office to the extent necessary to determine eligibility 421.25 under section 136A.121, subdivision 2, clause (5); 421.26 (14) participant social security numbers and names 421.27 collected by the telephone assistance program may be disclosed 421.28 to the department of revenue to conduct an electronic data match 421.29 with the property tax refund database to determine eligibility 421.30 under section 237.70, subdivision 4a; 421.31 (15) the current address of a recipient of aid to families 421.32 with dependent children or Minnesota family investment 421.33 program-statewide may be disclosed to law enforcement officers 421.34 who provide the name of the recipient and notify the agency that: 421.35 (i) the recipient: 421.36 (A) is a fugitive felon fleeing to avoid prosecution, or 422.1 custody or confinement after conviction, for a crime or attempt 422.2 to commit a crime that is a felony under the laws of the 422.3 jurisdiction from which the individual is fleeing; or 422.4 (B) is violating a condition of probation or parole imposed 422.5 under state or federal law; 422.6 (ii) the location or apprehension of the felon is within 422.7 the law enforcement officer's official duties; and 422.8 (iii) the request is made in writing and in the proper 422.9 exercise of those duties; 422.10 (16) the current address of a recipient of general 422.11 assistance or general assistance medical care may be disclosed 422.12 to probation officers and corrections agents who are supervising 422.13 the recipient and to law enforcement officers who are 422.14 investigating the recipient in connection with a felony level 422.15 offense; 422.16 (17) information obtained from food stamp applicant or 422.17 recipient households may be disclosed to local, state, or 422.18 federal law enforcement officials, upon their written request, 422.19 for the purpose of investigating an alleged violation of the 422.20 Food Stamp Act, according to Code of Federal Regulations, title 422.21 7, section 272.1(c); 422.22 (18) the address, social security number, and, if 422.23 available, photograph of any member of a household receiving 422.24 food stamps shall be made available, on request, to a local, 422.25 state, or federal law enforcement officer if the officer 422.26 furnishes the agency with the name of the member and notifies 422.27 the agency that: 422.28 (i) the member: 422.29 (A) is fleeing to avoid prosecution, or custody or 422.30 confinement after conviction, for a crime or attempt to commit a 422.31 crime that is a felony in the jurisdiction the member is 422.32 fleeing; 422.33 (B) is violating a condition of probation or parole imposed 422.34 under state or federal law; or 422.35 (C) has information that is necessary for the officer to 422.36 conduct an official duty related to conduct described in subitem 423.1 (A) or (B); 423.2 (ii) locating or apprehending the member is within the 423.3 officer's official duties; and 423.4 (iii) the request is made in writing and in the proper 423.5 exercise of the officer's official duty; 423.6 (19) certain information regarding child support obligors 423.7 who are in arrears may be made public according to section 423.8 518.575; 423.9 (20) data on child support payments made by a child support 423.10 obligor and data on the distribution of those payments excluding 423.11 identifying information on obligees may be disclosed to all 423.12 obligees to whom the obligor owes support, and data on the 423.13 enforcement actions undertaken by the public authority, the 423.14 status of those actions, and data on the income of the obligor 423.15 or obligee may be disclosed to the other party; 423.16 (21) data in the work reporting system may be disclosed 423.17 under section 256.998, subdivision 7; 423.18 (22) to the department of children, families, and learning 423.19 for the purpose of matching department of children, families, 423.20 and learning student data with public assistance data to 423.21 determine students eligible for free and reduced price meals, 423.22 meal supplements, and free milk according to United States Code, 423.23 title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to 423.24 produce accurate numbers of students receiving aid to families 423.25 with dependent children or Minnesota family investment 423.26 program-statewide as required by section 126C.06; to allocate 423.27 federal and state funds that are distributed based on income of 423.28 the student's family; and to verify receipt of energy assistance 423.29 for the telephone assistance plan; 423.30 (23) the current address and telephone number of program 423.31 recipients and emergency contacts may be released to the 423.32 commissioner of health or a local board of health as defined in 423.33 section 145A.02, subdivision 2, when the commissioner or local 423.34 board of health has reason to believe that a program recipient 423.35 is a disease case, carrier, suspect case, or at risk of illness, 423.36 and the data are necessary to locate the person; 424.1 (24) to other state agencies, statewide systems, and 424.2 political subdivisions of this state, including the attorney 424.3 general, and agencies of other states, interstate information 424.4 networks, federal agencies, and other entities as required by 424.5 federal regulation or law for the administration of the child 424.6 support enforcement program; 424.7 (25) to personnel of public assistance programs as defined 424.8 in section 256.741, for access to the child support system 424.9 database for the purpose of administration, including monitoring 424.10 and evaluation of those public assistance programs;or424.11 (26) to monitor and evaluate the statewide Minnesota family 424.12 investment program by exchanging data between the departments of 424.13 human services and children, families, and learning, on 424.14 recipients and former recipients of food stamps, cash assistance 424.15 under chapter 256, 256D, 256J, or 256K, child care assistance 424.16 under chapter 119B, or medical programs under chapter 256B, 424.17 256D, or 256L; or 424.18 (27) to evaluate child support program performance and to 424.19 identify and prevent fraud in the child support program by 424.20 exchanging data between the department of human services, 424.21 department of revenue, department of health, department of 424.22 economic security, and other state agencies as is reasonably 424.23 necessary to perform these functions. 424.24 (b) Information on persons who have been treated for drug 424.25 or alcohol abuse may only be disclosed according to the 424.26 requirements of Code of Federal Regulations, title 42, sections 424.27 2.1 to 2.67. 424.28 (c) Data provided to law enforcement agencies under 424.29 paragraph (a), clause (15), (16), (17), or (18), or paragraph 424.30 (b), are investigative data and are confidential or protected 424.31 nonpublic while the investigation is active. The data are 424.32 private after the investigation becomes inactive under section 424.33 13.82, subdivision 5, paragraph (a) or (b). 424.34 (d) Mental health data shall be treated as provided in 424.35 subdivisions 7, 8, and 9, but is not subject to the access 424.36 provisions of subdivision 10, paragraph (b). 425.1 Sec. 2. Minnesota Statutes 1998, section 256.87, 425.2 subdivision 1a, is amended to read: 425.3 Subd. 1a. [CONTINUING SUPPORT CONTRIBUTIONS.] In addition 425.4 to granting the county or state agency a money judgment, the 425.5 court may, upon a motion or order to show cause, order 425.6 continuing support contributions by a parent found able to 425.7 reimburse the county or state agency. The order shall be 425.8 effective for the period of time during which the recipient 425.9 receives public assistance from any county or state agency and 425.10 thereafter. The order shall require support according to 425.11 chapter 518 and include the names and social security numbers of 425.12 the father, mother, and the child or children. An order for 425.13 continuing contributions is reinstated without further hearing 425.14 upon notice to the parent by any county or state agency that 425.15 public assistance, as defined in section 256.741, is again being 425.16 provided for the child of the parent. The notice shall be in 425.17 writing and shall indicate that the parent may request a hearing 425.18 for modification of the amount of support or maintenance. 425.19 Sec. 3. Minnesota Statutes 1998, section 256.978, 425.20 subdivision 1, is amended to read: 425.21 Subdivision 1. [REQUEST FOR INFORMATION.] (a) The public 425.22 authority responsible for child support in this state or any 425.23 other state, in order to locate a person or to obtain 425.24 information necessary to establish paternity and child support 425.25 or to modify or enforce child support or distribute collections, 425.26 may request information reasonably necessary to the inquiry from 425.27 the records of (1) all departments, boards, bureaus, or other 425.28 agencies of this state, which shall, notwithstanding the 425.29 provisions of section 268.19 or any other law to the contrary, 425.30 provide the information necessary for this purpose.; and (2) 425.31 employers, utility companies, insurance companies, financial 425.32 institutions, credit grantors, and labor associations doing 425.33 business in this state. They shall provideinformation as425.34provided under subdivision 2a response upon written or 425.35 electronic requestby an agency responsible for child support425.36enforcement regarding individuals owing or allegedly owing a426.1duty to supportwithin 30 days of service of the request made by 426.2 the public authority. Information requested and used or 426.3 transmitted by the commissioner according to the authority 426.4 conferred by this section may be made available to other 426.5 agencies, statewide systems, and political subdivisions of this 426.6 state, and agencies of other states, interstate information 426.7 networks, federal agencies, and other entities as required by 426.8 federal regulation or law for the administration of the child 426.9 support enforcement program. 426.10 (b) For purposes of this section, "state" includes the 426.11 District of Columbia, Puerto Rico, the United States Virgin 426.12 Islands, and any territory or insular possession subject to the 426.13 jurisdiction of the United States. 426.14 Sec. 4. Minnesota Statutes 1998, section 257.62, 426.15 subdivision 5, is amended to read: 426.16 Subd. 5. [POSITIVE TEST RESULTS.] (a) If the results of 426.17 blood or genetic tests completed in a laboratory accredited by 426.18 the American Association of Blood Banks indicate that the 426.19 likelihood of the alleged father's paternity, calculated with a 426.20 prior probability of no more than 0.5 (50 percent), is 92 426.21 percent or greater, upon motion the court shall order the 426.22 alleged father to pay temporary child support determined 426.23 according to chapter 518. The alleged father shall pay the 426.24 support money to the public authority if the public authority is 426.25 a party and is providing services to the parties or, if not, 426.26 into court pursuant to the rules of civil procedure to await the 426.27 results of the paternity proceedings. 426.28 (b) If the results of blood or genetic tests completed in a 426.29 laboratory accredited by the American Association of Blood Banks 426.30 indicate that likelihood of the alleged father's paternity, 426.31 calculated with a prior probability of no more than 0.5 (50 426.32 percent), is 99 percent or greater, the alleged father is 426.33 presumed to be the parent and the party opposing the 426.34 establishment of the alleged father's paternity has the burden 426.35 of proving by clear and convincing evidence that the alleged 426.36 father is not the father of the child. 427.1 Sec. 5. Minnesota Statutes 1998, section 257.75, 427.2 subdivision 2, is amended to read: 427.3 Subd. 2. [REVOCATION OF RECOGNITION.] A recognition may be 427.4 revoked in a writing signed by the mother or father before a 427.5 notary public and filed with the state registrar of vital 427.6 statistics within the earlier of3060 days after the 427.7 recognition is executed or the date of an administrative or 427.8 judicial hearing relating to the child in which the revoking 427.9 party is a party to the related action. A joinder in a 427.10 recognition may be revoked in a writing signed by the man who 427.11 executed the joinder and filed with the state registrar of vital 427.12 statistics within3060 days after the joinder is executed. 427.13 Upon receipt of a revocation of the recognition of parentage or 427.14 joinder in a recognition, the state registrar of vital 427.15 statistics shall forward a copy of the revocation to the 427.16 nonrevoking parent, or, in the case of a joinder in a 427.17 recognition, to the mother and father who executed the 427.18 recognition. 427.19 Sec. 6. Minnesota Statutes 1998, section 518.10, is 427.20 amended to read: 427.21 518.10 [REQUISITES OF PETITION.] 427.22 The petition for dissolution of marriage or legal 427.23 separation shall state and allege: 427.24 (a) the name, address, and, in circumstances in which child 427.25 support or spousal maintenance will be addressed, social 427.26 security number of the petitioner and any prior or other name 427.27 used by the petitioner; 427.28 (b) the name and, if known, the address and, in 427.29 circumstances in which child support or spousal maintenance will 427.30 be addressed, social security number of the respondent and any 427.31 prior or other name used by the respondent and known to the 427.32 petitioner; 427.33 (c) the place and date of the marriage of the parties; 427.34 (d) in the case of a petition for dissolution, that either 427.35 the petitioner or the respondent or both: 427.36 (1) has resided in this state for not less than 180 days 428.1 immediately preceding the commencement of the proceeding, or 428.2 (2) has been a member of the armed services and has been 428.3 stationed in this state for not less than 180 days immediately 428.4 preceding the commencement of the proceeding, or 428.5 (3) has been a domiciliary of this state for not less than 428.6 180 days immediately preceding the commencement of the 428.7 proceeding; 428.8 (e) the name at the time of the petition and any prior or 428.9 other name, social security number, age, and date of birth of 428.10 each living minor or dependent child of the parties born before 428.11 the marriage or born or adopted during the marriage and a 428.12 reference to, and the expected date of birth of, a child of the 428.13 parties conceived during the marriage but not born; 428.14 (f) whether or not a separate proceeding for dissolution, 428.15 legal separation, or custody is pending in a court in this state 428.16 or elsewhere; 428.17 (g) in the case of a petition for dissolution, that there 428.18 has been an irretrievable breakdown of the marriage 428.19 relationship; 428.20 (h) in the case of a petition for legal separation, that 428.21 there is a need for a decree of legal separation; 428.22 (i) any temporary or permanent maintenance, child support, 428.23 child custody, disposition of property, attorneys' fees, costs 428.24 and disbursements applied for without setting forth the amounts; 428.25 and 428.26 (j) whether an order for protection under chapter 518B or a 428.27 similar law of another state that governs the parties or a party 428.28 and a minor child of the parties is in effect and, if so, the 428.29 district court or similar jurisdiction in which it was entered. 428.30 The petition shall be verified by the petitioner or 428.31 petitioners, and its allegations established by competent 428.32 evidence. 428.33 Sec. 7. [518.146] [SOCIAL SECURITY NUMBERS; TAX RETURNS; 428.34 IDENTITY PROTECTION.] 428.35 The social security numbers and tax returns required under 428.36 this chapter are private data, except that they must be 429.1 disclosed to the other parties to a proceeding. 429.2 Sec. 8. Minnesota Statutes 1998, section 518.551, is 429.3 amended by adding a subdivision to read: 429.4 Subd. 15. [LICENSE SUSPENSION.] (a) Upon motion of an 429.5 obligee or the public authority, which has been properly served 429.6 on the obligor by first class mail at the last known address or 429.7 in person, and if at a hearing, the court or an administrative 429.8 law judge finds (1) the obligor is in arrears in court-ordered 429.9 child support or maintenance payments, or both, in an amount 429.10 equal to or greater than three times the obligor's total monthly 429.11 support and maintenance payments and is not in compliance with a 429.12 written payment agreement regarding both current support and 429.13 arrearages, or (2) has failed, after receiving notice, to comply 429.14 with a subpoena relating to a paternity or child support 429.15 proceeding, the court or administrative law judge may direct the 429.16 commissioner of natural resources to suspend or bar receipt of 429.17 the obligor's recreational license or licenses. 429.18 (b) For the purposes of this subdivision, a recreational 429.19 license includes all licenses, permits, and stamps issued 429.20 centrally by the commissioner of natural resources under 429.21 sections 97B.301, 97B.401, 97B.501, 97B.515, 97B.601, 97B.715, 429.22 97B.721, 97B.801, 97C.301, and 97C.305. 429.23 (c) An obligor whose recreational license or licenses have 429.24 been suspended or barred may provide proof to the court or 429.25 administrative law judge that the obligor is in compliance with 429.26 all written payment agreements regarding both current support 429.27 and arrearages. Within 15 days of receipt of that proof, the 429.28 court or administrative law judge may notify the commissioner of 429.29 natural resources that the obligor's recreational license or 429.30 licenses should no longer be suspended nor should receipt be 429.31 barred. 429.32 Sec. 9. Minnesota Statutes 1998, section 518.57, 429.33 subdivision 3, is amended to read: 429.34 Subd. 3. [SATISFACTION OF CHILD SUPPORT OBLIGATION.] The 429.35 courtmaymust conclude that an obligor has satisfied a child 429.36 support obligation by providing a home, care, and support for 430.1 the child while the child is living with the obligor, if the 430.2 court finds that the child was integrated into the family of the 430.3 obligor with the consent or acquiescence of the obligee and 430.4 child support payments were not assigned to the public agency 430.5 under section 256.74. 430.6 Sec. 10. Minnesota Statutes 1998, section 518.5851, is 430.7 amended by adding a subdivision to read: 430.8 Subd. 6. [CREDITOR COLLECTIONS.] The central collections 430.9 unit under this section is not a third party under chapters 550, 430.10 552, and 571 for purposes of creditor collection efforts against 430.11 child support and maintenance order obligors or obligees, and 430.12 shall not be subject to creditor levy, attachment, or 430.13 garnishment. 430.14 Sec. 11. Minnesota Statutes 1998, section 518.5853, is 430.15 amended by adding a subdivision to read: 430.16 Subd. 11. [COLLECTIONS UNIT RECOUPMENT ACCOUNT.] The 430.17 commissioner of human services may establish a revolving account 430.18 to cover funds issued in error due to insufficient funds or 430.19 other reasons. Appropriations for this purpose and all 430.20 recoupments against payments from the account shall be deposited 430.21 in the collections unit's recoupment account and are 430.22 appropriated to the commissioner. Any unexpended balance in the 430.23 account does not cancel, but is available until expended. 430.24 Sec. 12. Minnesota Statutes 1998, section 518.64, 430.25 subdivision 2, is amended to read: 430.26 Subd. 2. [MODIFICATION.] (a) The terms of an order 430.27 respecting maintenance or support may be modified upon a showing 430.28 of one or more of the following: (1) substantially increased or 430.29 decreased earnings of a party; (2) substantially increased or 430.30 decreased need of a party or the child or children that are the 430.31 subject of these proceedings; (3) receipt of assistance under 430.32 sections 256.72 to 256.87 or 256B.01 to 256B.40; (4) a change in 430.33 the cost of living for either party as measured by the federal 430.34 bureau of statistics, any of which makes the terms unreasonable 430.35 and unfair; (5) extraordinary medical expenses of the child not 430.36 provided for under section 518.171; or (6) the addition of 431.1 work-related or education-related child care expenses of the 431.2 obligee or a substantial increase or decrease in existing 431.3 work-related or education-related child care expenses. 431.4 On a motion to modify support, the needs of any child the 431.5 obligor has after the entry of the support order that is the 431.6 subject of a modification motion shall be considered as provided 431.7 by section 518.551, subdivision 5f. 431.8 (b) It is presumed that there has been a substantial change 431.9 in circumstances under paragraph (a) and the terms of a current 431.10 support order shall be rebuttably presumed to be unreasonable 431.11 and unfair if: 431.12 (1) the application of the child support guidelines in 431.13 section 518.551, subdivision 5, to the current circumstances of 431.14 the parties results in a calculated court order that is at least 431.15 20 percent and at least $50 per month higher or lower than the 431.16 current support order; 431.17 (2) the medical support provisions of the order established 431.18 under section 518.171 are not enforceable by the public 431.19 authority or the custodial parent; 431.20 (3) health coverage ordered under section 518.171 is not 431.21 available to the child for whom the order is established by the 431.22 parent ordered to provide; or 431.23 (4) the existing support obligation is in the form of a 431.24 statement of percentage and not a specific dollar amount. 431.25 (c) On a motion for modification of maintenance, including 431.26 a motion for the extension of the duration of a maintenance 431.27 award, the court shall apply, in addition to all other relevant 431.28 factors, the factors for an award of maintenance under section 431.29 518.552 that exist at the time of the motion. On a motion for 431.30 modification of support, the court: 431.31 (1) shall apply section 518.551, subdivision 5, and shall 431.32 not consider the financial circumstances of each party's spouse, 431.33 if any; and 431.34 (2) shall not consider compensation received by a party for 431.35 employment in excess of a 40-hour work week, provided that the 431.36 party demonstrates, and the court finds, that: 432.1 (i) the excess employment began after entry of the existing 432.2 support order; 432.3 (ii) the excess employment is voluntary and not a condition 432.4 of employment; 432.5 (iii) the excess employment is in the nature of additional, 432.6 part-time employment, or overtime employment compensable by the 432.7 hour or fractions of an hour; 432.8 (iv) the party's compensation structure has not been 432.9 changed for the purpose of affecting a support or maintenance 432.10 obligation; 432.11 (v) in the case of an obligor, current child support 432.12 payments are at least equal to the guidelines amount based on 432.13 income not excluded under this clause; and 432.14 (vi) in the case of an obligor who is in arrears in child 432.15 support payments to the obligee, any net income from excess 432.16 employment must be used to pay the arrearages until the 432.17 arrearages are paid in full. 432.18 (d) A modification of support or maintenance, including 432.19 interest that accrued pursuant to section 548.091, may be made 432.20 retroactive only with respect to any period during which the 432.21 petitioning party has pending a motion for modification but only 432.22 from the date of service of notice of the motion on the 432.23 responding party and on the public authority if public 432.24 assistance is being furnished or the county attorney is the 432.25 attorney of record. However, modification may be applied to an 432.26 earlier period if the court makes express findings that: 432.27 (1) the party seeking modification was precluded from 432.28 serving a motion by reason of a significant physical or mental 432.29 disability, a material misrepresentation of another party, or 432.30 fraud upon the court and that the party seeking modification, 432.31 when no longer precluded, promptly served a motion; 432.32 (2) the party seeking modification was a recipient of 432.33 federal Supplemental Security Income (SSI), Title II Older 432.34 Americans, Survivor's Disability Insurance (OASDI), other 432.35 disability benefits, or public assistance based upon need during 432.36 the period for which retroactive modification is sought; or 433.1 (3) the order for which the party seeks amendment was 433.2 entered by default, the party shows good cause for not 433.3 appearing, and the record contains no factual evidence, or 433.4 clearly erroneous evidence regarding the individual obligor's 433.5 ability to pay. 433.6 The court may provide that a reduction in the amount 433.7 allocated for child care expenses based on a substantial 433.8 decrease in the expenses is effective as of the date the 433.9 expenses decreased. 433.10 (e) Except for an award of the right of occupancy of the 433.11 homestead, provided in section 518.63, all divisions of real and 433.12 personal property provided by section 518.58 shall be final, and 433.13 may be revoked or modified only where the court finds the 433.14 existence of conditions that justify reopening a judgment under 433.15 the laws of this state, including motions under section 518.145, 433.16 subdivision 2. The court may impose a lien or charge on the 433.17 divided property at any time while the property, or subsequently 433.18 acquired property, is owned by the parties or either of them, 433.19 for the payment of maintenance or support money, or may 433.20 sequester the property as is provided by section 518.24. 433.21 (f) The court need not hold an evidentiary hearing on a 433.22 motion for modification of maintenance or support. 433.23 (g) Section 518.14 shall govern the award of attorney fees 433.24 for motions brought under this subdivision. 433.25 Sec. 13. Minnesota Statutes 1998, section 548.09, 433.26 subdivision 1, is amended to read: 433.27 Subdivision 1. [ENTRY AND DOCKETING; SURVIVAL OF 433.28 JUDGMENT.] Except as provided in section 548.091, every judgment 433.29 requiring the payment of money shall bedocketedentered by the 433.30 court administratorupon its entrywhen ordered by the court and 433.31 will be docketed by the court administrator upon the filing of 433.32 an affidavit as provided in subdivision 2. Upon a transcript of 433.33 the docket being filed with the court administrator in any other 433.34 county, the court administrator shall also docket it. From the 433.35 time of docketing the judgment is a lien, in the amount unpaid, 433.36 upon all real property in the county then or thereafter owned by 434.1 the judgment debtor, but it is not a lien upon registered land 434.2 unless it is also filed pursuant to sections 508.63 and 434.3 508A.63. The judgment survives, and the lien continues, for ten 434.4 years after its entry. Child support judgments may be 434.5 renewedby service of notice upon the debtor. Service shall be434.6by certified mail at the last known address of the debtor or in434.7the manner provided for the service of civil process. Upon the434.8filing of the notice and proof of service the court434.9administrator shall renew the judgment for child support without434.10any additional filing feepursuant to section 548.091. 434.11 Sec. 14. Minnesota Statutes 1998, section 548.091, 434.12 subdivision 1, is amended to read: 434.13 Subdivision 1. [ENTRY AND DOCKETING OF MAINTENANCE 434.14 JUDGMENT.] (a) A judgment for unpaid amounts under a judgment or 434.15 decree of dissolution or legal separation that provides for 434.16 installment or periodic payments of maintenance shall be entered 434.17and docketedby the court administratoronlywhen ordered by the 434.18 court or shall be entered and docketed by the court 434.19 administrator when the following conditions are met: 434.20(a)(1) the obligee determines that the obligor is at least 434.21 30 days in arrears; 434.22(b)(2) the obligee serves a copy of an affidavit of 434.23 default and notice of intent to enter and docket judgment on the 434.24 obligor by first class mail at the obligor's last known post 434.25 office address. Service shall be deemed complete upon mailing 434.26 in the manner designated. The affidavit shall state the full 434.27 name, occupation, place of residence, and last known post office 434.28 address of the obligor, the name and post office address of the 434.29 obligee, the date of the first unpaid amount, the date of the 434.30 last unpaid amount, and the total amount unpaid; 434.31(c)(3) the obligor fails within 20 days after mailing of 434.32 the notice either to pay all unpaid amounts or to request a 434.33 hearing on the issue of whether arrears claimed owing have been 434.34 paid and to seek, ex parte, a stay of entry of judgment; and 434.35(d)(4) not less than 20 days after service on the obligor 434.36 in the manner provided, the obligee files with the court 435.1 administrator the affidavit of default together with proof of 435.2 service and, if payments have been received by the obligee since 435.3 execution of the affidavit of default, a supplemental affidavit 435.4 setting forth the amount of payment received and the amount for 435.5 which judgment is to be entered and docketed. 435.6 (b) A judgment entered and docketed under this subdivision 435.7 has the same effect and is subject to the same procedures, 435.8 defenses, and proceedings as any other judgment in district 435.9 court, and may be enforced or satisfied in the same manner as 435.10 judgments under section 548.09. 435.11 (c) An obligor whose property is subject to the lien of a 435.12 judgment for installment of periodic payments of maintenance 435.13 under section 548.09, and who claims that no amount of 435.14 maintenance is in arrears, may move the court ex parte for an 435.15 order directing the court administrator to vacate the lien of 435.16 the judgment on the docket and register of the action where it 435.17 was entered. The obligor shall file with the motion an 435.18 affidavit stating: 435.19 (1) the lien attached upon the docketing of a judgment or 435.20 decree of dissolution or separate maintenance; 435.21 (2) the docket was made while no installment or periodic 435.22 payment of maintenance was unpaid or overdue; and 435.23 (3) no installment or periodic payment of maintenance that 435.24 was due prior to the filing of the motion remains unpaid or 435.25 overdue. 435.26 The court shall grant the obligor's motion as soon as 435.27 possible if the pleadings and affidavit show that there is and 435.28 has been no default. 435.29 Sec. 15. Minnesota Statutes 1998, section 548.091, 435.30 subdivision 1a, is amended to read: 435.31 Subd. 1a. [CHILD SUPPORT JUDGMENT BY OPERATION OF LAW.] 435.32 (a) Any payment or installment of support required by a judgment 435.33 or decree of dissolution or legal separation, determination of 435.34 parentage, an order under chapter 518C, an order under section 435.35 256.87, or an order under section 260.251, that is not paid or 435.36 withheld from the obligor's income as required under section 436.1 518.6111, or which is ordered as child support by judgment, 436.2 decree, or order by a court in any other state, is a judgment by 436.3 operation of law on and after the date it is dueand, is 436.4 entitled to full faith and credit in this state and any other 436.5 state, and shall be entered and docketed by the court 436.6 administrator on the filing of affidavits as provided in 436.7 subdivision 2a. Except as otherwise provided by paragraph (b), 436.8 interest accrues from the date the unpaid amount due is greater 436.9 than the current support due at the annual rate provided in 436.10 section 549.09, subdivision 1, plus two percent, not to exceed 436.11 an annual rate of 18 percent. A payment or installment of 436.12 support that becomes a judgment by operation of law between the 436.13 date on which a party served notice of a motion for modification 436.14 under section 518.64, subdivision 2, and the date of the court's 436.15 order on modification may be modified under that subdivision. 436.16 (b) Notwithstanding the provisions of section 549.09, upon 436.17 motion to the court and upon proof by the obligor of 36 436.18 consecutive months of complete and timely payments of both 436.19 current support and court-ordered paybacks of a child support 436.20 debt or arrearage, the court may order interest on the remaining 436.21 debt or arrearage to stop accruing. Timely payments are those 436.22 made in the month in which they are due. If, after that time, 436.23 the obligor fails to make complete and timely payments of both 436.24 current support and court-ordered paybacks of child support debt 436.25 or arrearage, the public authority or the obligee may move the 436.26 court for the reinstatement of interest as of the month in which 436.27 the obligor ceased making complete and timely payments. 436.28 The court shall provide copies of all orders issued under 436.29 this section to the public authority. The commissioner of human 436.30 services shall prepare and make available to the court and the 436.31 parties forms to be submitted by the parties in support of a 436.32 motion under this paragraph. 436.33 (c) Notwithstanding the provisions of section 549.09, upon 436.34 motion to the court, the court may order interest on a child 436.35 support debt to stop accruing where the court finds that the 436.36 obligor is: 437.1 (1) unable to pay support because of a significant physical 437.2 or mental disability; or 437.3 (2) a recipient of Supplemental Security Income (SSI), 437.4 Title II Older Americans Survivor's Disability Insurance 437.5 (OASDI), other disability benefits, or public assistance based 437.6 upon need. 437.7 Sec. 16. Minnesota Statutes 1998, section 548.091, 437.8 subdivision 2a, is amended to read: 437.9 Subd. 2a. [ENTRY AND DOCKETING OF CHILD SUPPORT 437.10 JUDGMENT.] (a) On or after the date an unpaid amount becomes a 437.11 judgment by operation of law under subdivision 1a, the obligee 437.12 or the public authority may file with the court administrator,437.13either electronically or by other means: 437.14 (1) a statement identifying, or a copy of, the judgment or 437.15 decree of dissolution or legal separation, determination of 437.16 parentage, order under chapter 518B or 518C, an order under 437.17 section 256.87, an order under section 260.251, or judgment, 437.18 decree, or order for child support by a court in any other 437.19 state, which provides for periodic installments of child 437.20 support, or a judgment or notice of attorney fees and collection 437.21 costs under section 518.14, subdivision 2; 437.22 (2) an affidavit of default. The affidavit of default must 437.23 state the full name, occupation, place of residence, and last 437.24 known post office address of the obligor, the name and post 437.25 office address of the obligee, the date or dates payment was due 437.26 and not received and judgment was obtained by operation of law, 437.27 the total amount of the judgments tothe date of filing, and the437.28amount and frequency of the periodic installments of child437.29support that will continue to become due and payable subsequent437.30to the date of filingbe entered and docketed; and 437.31 (3) an affidavit of service of a notice of intent to enter 437.32 and docket judgment and to recover attorney fees and collection 437.33 costs on the obligor, in person or by first class mail at the 437.34 obligor's last known post office address. Service is completed 437.35 upon mailing in the manner designated. Where applicable, a 437.36 notice of interstate lien in the form promulgated under United 438.1 States Code, title 42, section 652(a), is sufficient to satisfy 438.2 the requirements of clauses (1) and (2). 438.3 (b) A judgment entered and docketed under this subdivision 438.4 has the same effect and is subject to the same procedures, 438.5 defenses, and proceedings as any other judgment in district 438.6 court, and may be enforced or satisfied in the same manner as 438.7 judgments under section 548.09, except as otherwise provided. 438.8 Sec. 17. Minnesota Statutes 1998, section 548.091, 438.9 subdivision 3a, is amended to read: 438.10 Subd. 3a. [ENTRY, DOCKETING, AND SURVIVAL OF CHILD SUPPORT 438.11 JUDGMENT.] Upon receipt of the documents filed under subdivision 438.12 2a, the court administrator shall enter and docket the judgment 438.13 in the amount of the unpaid obligation identified in the 438.14 affidavit of default.and note the amount and frequency of the438.15periodic installments of child support that will continue to438.16become due and payable after the date of docketing. From the438.17time of docketing, the judgment is a lien upon all the real438.18property in the county owned by the judgment debtor, but it is438.19not a lien on registered land unless the obligee or the public438.20authority causes a notice of judgment lien or certified copy of438.21the judgment to be memorialized on the certificate of title or438.22certificate of possessory title under section 508.63 or438.23508A.63. The judgment survives and the lien continues for ten438.24years after the date the judgment was docketed.438.25 Subd. 3b. [CHILD SUPPORT JUDGMENT ADMINISTRATIVE 438.26 RENEWALS.] Child support judgments may be renewed by service of 438.27 notice upon the debtor. Serviceshallmust be bycertified438.28 first class mail at the last known address of the debtor, with 438.29 service deemed complete upon mailing in the manner designated, 438.30 or in the manner provided for the service of civil process. 438.31 Upon the filing of the notice and proof of service, the court 438.32 administrator shall administratively renew the judgment for 438.33 child support without any additional filing fee in the same 438.34 court file as the original child support judgment. The judgment 438.35 must be renewed in an amount equal to the unpaid principle plus 438.36 the accrued unpaid interest. Child support judgments may be 439.1 renewed multiple times until paid. 439.2 Sec. 18. Minnesota Statutes 1998, section 548.091, 439.3 subdivision 4, is amended to read: 439.4 Subd. 4. [CHILD SUPPORT HEARING.] A child support obligor 439.5 may request a hearing under the rules of civil procedure on the 439.6 issue of whether the judgment amount or amounts have been paid 439.7 and may move the court for an order directing the court 439.8 administrator to vacate or modify the judgment or judgmentson439.9the docket and register in any county or other jurisdiction in439.10which judgment or judgments wereentered pursuant to this action. 439.11 The court shall grant the obligor's motion if it determines 439.12 that there is no default. 439.13 Sec. 19. Minnesota Statutes 1998, section 548.091, is 439.14 amended by adding a subdivision to read: 439.15 Subd. 5a. [ADDITIONAL CHILD SUPPORT JUDGMENTS.] As child 439.16 support payments continue to become due and are unpaid, 439.17 additional judgments may be entered and docketed by following 439.18 the procedures in subdivision 1a. Each judgment entered and 439.19 docketed for unpaid child support payments must be treated as a 439.20 distinct judgment for purposes of enforcement and satisfaction. 439.21 Sec. 20. Minnesota Statutes 1998, section 548.091, 439.22 subdivision 10, is amended to read: 439.23 Subd. 10. [RELEASE OF LIEN.] Upon payment of the amount 439.24 dueunder subdivision 5, the public authority shall execute and 439.25 deliver a satisfaction of the judgment lien within five business 439.26 days. 439.27 Sec. 21. Minnesota Statutes 1998, section 548.091, 439.28 subdivision 11, is amended to read: 439.29 Subd. 11. [SPECIAL PROCEDURES.] The public authority shall 439.30 negotiate a release of lien on specific property for less than 439.31 the full amount due where the proceeds of a sale or financing, 439.32 less reasonable and necessary closing expenses, are not 439.33 sufficient to satisfy all encumbrances on the liened property. 439.34 Partial releases do not release the obligor's personal liability 439.35 for the amount unpaid. A partial satisfaction for the amount 439.36 received must be filed with the court administrator. 440.1 Sec. 22. Minnesota Statutes 1998, section 548.091, 440.2 subdivision 12, is amended to read: 440.3 Subd. 12. [CORRECTING ERRORS.] The public authority shall 440.4 maintain a process to review the identity of the obligor and to 440.5 issue releases of lien in cases of misidentification. The 440.6 public authority shall maintain a process to review the amount 440.7 of child supportdetermined to be delinquent and to issue440.8amended notices of judgment lien in cases of incorrectly440.9docketedjudgments arising by operation of law. The public 440.10 authority may move the court for an order to amend the judgment 440.11 when the amount of judgment entered and docketed is incorrect. 440.12 Sec. 23. Minnesota Statutes 1998, section 552.05, 440.13 subdivision 10, is amended to read: 440.14 Subd. 10. [FORMS.]The commissioner of human services440.15shall develop statutory forms for use as required under this440.16chapter. In developing these forms, the commissioner shall440.17consult with the attorney general, representatives of financial440.18institutions, and legal services. The commissioner shall report440.19back to the legislature by February 1, 1998, with recommended440.20forms to be included in this chapter.The supreme court is 440.21 requested to develop forms for use in proceedings under this 440.22 chapter. 440.23 Sec. 24. Laws 1995, chapter 257, article 1, section 35, 440.24 subdivision 1, is amended to read: 440.25 Subdivision 1. [CHILD SUPPORT ASSURANCE.]The commissioner440.26of human services shall seek a waiver from the secretary of the440.27United States Department of Health and Human Services to enable440.28the department of human services to operate a demonstration440.29project of child support assurance. The commissioner shall seek440.30authority from the legislature to implement a demonstration440.31project of child support assurance when enhanced federal funds440.32become available for this purpose.The department of human 440.33 services shall continue to plan a demonstration project of child 440.34 support assurance by administering the grant awarded under the 440.35 federal program entitled "Developing a Plan for a Child Support 440.36 Assurance Program." 441.1 Sec. 25. [REPEALER.] 441.2 Minnesota Statutes 1998, section 548.091, subdivisions 3, 441.3 5, and 6, are repealed. 441.4 ARTICLE 8 441.5 HEALTH OCCUPATIONS 441.6 Section 1. [144E.37] [COMPREHENSIVE ADVANCED LIFE 441.7 SUPPORT.] 441.8 The board shall establish a comprehensive advanced life 441.9 support educational program to train rural medical personnel, 441.10 including physicians, physician assistants, nurses, and allied 441.11 health care providers, in a team approach to anticipate, 441.12 recognize, and treat life-threatening emergencies before serious 441.13 injury or cardiac arrest occurs. 441.14 ARTICLE 9 441.15 CHILD PROTECTION 441.16 Section 1. Minnesota Statutes 1998, section 256.01, 441.17 subdivision 2, is amended to read: 441.18 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 441.19 section 241.021, subdivision 2, the commissioner of human 441.20 services shall: 441.21 (1) Administer and supervise all forms of public assistance 441.22 provided for by state law and other welfare activities or 441.23 services as are vested in the commissioner. Administration and 441.24 supervision of human services activities or services includes, 441.25 but is not limited to, assuring timely and accurate distribution 441.26 of benefits, completeness of service, and quality program 441.27 management. In addition to administering and supervising human 441.28 services activities vested by law in the department, the 441.29 commissioner shall have the authority to: 441.30 (a) require county agency participation in training and 441.31 technical assistance programs to promote compliance with 441.32 statutes, rules, federal laws, regulations, and policies 441.33 governing human services; 441.34 (b) monitor, on an ongoing basis, the performance of county 441.35 agencies in the operation and administration of human services, 441.36 enforce compliance with statutes, rules, federal laws, 442.1 regulations, and policies governing welfare services and promote 442.2 excellence of administration and program operation; 442.3 (c) develop a quality control program or other monitoring 442.4 program to review county performance and accuracy of benefit 442.5 determinations; 442.6 (d) require county agencies to make an adjustment to the 442.7 public assistance benefits issued to any individual consistent 442.8 with federal law and regulation and state law and rule and to 442.9 issue or recover benefits as appropriate; 442.10 (e) delay or deny payment of all or part of the state and 442.11 federal share of benefits and administrative reimbursement 442.12 according to the procedures set forth in section 256.017; 442.13 (f) make contracts with and grants to public and private 442.14 agencies and organizations, both profit and nonprofit, and 442.15 individuals, using appropriated funds; and 442.16 (g) enter into contractual agreements with federally 442.17 recognized Indian tribes with a reservation in Minnesota to the 442.18 extent necessary for the tribe to operate a federally approved 442.19 family assistance program or any other program under the 442.20 supervision of the commissioner. The commissioner shall consult 442.21 with the affected county or counties in the contractual 442.22 agreement negotiations, if the county or counties wish to be 442.23 included, in order to avoid the duplication of county and tribal 442.24 assistance program services. The commissioner may establish 442.25 necessary accounts for the purposes of receiving and disbursing 442.26 funds as necessary for the operation of the programs. 442.27 (2) Inform county agencies, on a timely basis, of changes 442.28 in statute, rule, federal law, regulation, and policy necessary 442.29 to county agency administration of the programs. 442.30 (3) Administer and supervise all child welfare activities; 442.31 promote the enforcement of laws protecting handicapped, 442.32 dependent, neglected and delinquent children, and children born 442.33 to mothers who were not married to the children's fathers at the 442.34 times of the conception nor at the births of the children; 442.35 license and supervise child-caring and child-placing agencies 442.36 and institutions; supervise the care of children in boarding and 443.1 foster homes or in private institutions; and generally perform 443.2 all functions relating to the field of child welfare now vested 443.3 in the state board of control. 443.4 (4) Administer and supervise all noninstitutional service 443.5 to handicapped persons, including those who are visually 443.6 impaired, hearing impaired, or physically impaired or otherwise 443.7 handicapped. The commissioner may provide and contract for the 443.8 care and treatment of qualified indigent children in facilities 443.9 other than those located and available at state hospitals when 443.10 it is not feasible to provide the service in state hospitals. 443.11 (5) Assist and actively cooperate with other departments, 443.12 agencies and institutions, local, state, and federal, by 443.13 performing services in conformity with the purposes of Laws 443.14 1939, chapter 431. 443.15 (6) Act as the agent of and cooperate with the federal 443.16 government in matters of mutual concern relative to and in 443.17 conformity with the provisions of Laws 1939, chapter 431, 443.18 including the administration of any federal funds granted to the 443.19 state to aid in the performance of any functions of the 443.20 commissioner as specified in Laws 1939, chapter 431, and 443.21 including the promulgation of rules making uniformly available 443.22 medical care benefits to all recipients of public assistance, at 443.23 such times as the federal government increases its participation 443.24 in assistance expenditures for medical care to recipients of 443.25 public assistance, the cost thereof to be borne in the same 443.26 proportion as are grants of aid to said recipients. 443.27 (7) Establish and maintain any administrative units 443.28 reasonably necessary for the performance of administrative 443.29 functions common to all divisions of the department. 443.30 (8) Act as designated guardian of both the estate and the 443.31 person of all the wards of the state of Minnesota, whether by 443.32 operation of law or by an order of court, without any further 443.33 act or proceeding whatever, except as to persons committed as 443.34 mentally retarded. For children under the guardianship of the 443.35 commissioner whose interests would be best served by adoptive 443.36 placement, the commissioner may contract with a licensed 444.1 child-placing agency to provide adoption services. A contract 444.2 with a licensed child-placing agency must be designed to 444.3 supplement existing county efforts and may not replace existing 444.4 county programs, unless the replacement is agreed to by the 444.5 county board and the appropriate exclusive bargaining 444.6 representative or the commissioner has evidence that child 444.7 placements of the county continue to be substantially below that 444.8 of other counties. Funds encumbered and obligated under an 444.9 agreement for a specific child shall remain available until the 444.10 terms of the agreement are fulfilled or the agreement is 444.11 terminated. 444.12 (9) Act as coordinating referral and informational center 444.13 on requests for service for newly arrived immigrants coming to 444.14 Minnesota. 444.15 (10) The specific enumeration of powers and duties as 444.16 hereinabove set forth shall in no way be construed to be a 444.17 limitation upon the general transfer of powers herein contained. 444.18 (11) Establish county, regional, or statewide schedules of 444.19 maximum fees and charges which may be paid by county agencies 444.20 for medical, dental, surgical, hospital, nursing and nursing 444.21 home care and medicine and medical supplies under all programs 444.22 of medical care provided by the state and for congregate living 444.23 care under the income maintenance programs. 444.24 (12) Have the authority to conduct and administer 444.25 experimental projects to test methods and procedures of 444.26 administering assistance and services to recipients or potential 444.27 recipients of public welfare. To carry out such experimental 444.28 projects, it is further provided that the commissioner of human 444.29 services is authorized to waive the enforcement of existing 444.30 specific statutory program requirements, rules, and standards in 444.31 one or more counties. The order establishing the waiver shall 444.32 provide alternative methods and procedures of administration, 444.33 shall not be in conflict with the basic purposes, coverage, or 444.34 benefits provided by law, and in no event shall the duration of 444.35 a project exceed four years. It is further provided that no 444.36 order establishing an experimental project as authorized by the 445.1 provisions of this section shall become effective until the 445.2 following conditions have been met: 445.3 (a) The secretary of health, education, and welfare of the 445.4 United States has agreed, for the same project, to waive state 445.5 plan requirements relative to statewide uniformity. 445.6 (b) A comprehensive plan, including estimated project 445.7 costs, shall be approved by the legislative advisory commission 445.8 and filed with the commissioner of administration. 445.9 (13) According to federal requirements, establish 445.10 procedures to be followed by local welfare boards in creating 445.11 citizen advisory committees, including procedures for selection 445.12 of committee members. 445.13 (14) Allocate federal fiscal disallowances or sanctions 445.14 which are based on quality control error rates for the aid to 445.15 families with dependent children, Minnesota family investment 445.16 program-statewide, medical assistance, or food stamp program in 445.17 the following manner: 445.18 (a) One-half of the total amount of the disallowance shall 445.19 be borne by the county boards responsible for administering the 445.20 programs. For the medical assistance, MFIP-S, and AFDC 445.21 programs, disallowances shall be shared by each county board in 445.22 the same proportion as that county's expenditures for the 445.23 sanctioned program are to the total of all counties' 445.24 expenditures for the AFDC, MFIP-S, and medical assistance 445.25 programs. For the food stamp program, sanctions shall be shared 445.26 by each county board, with 50 percent of the sanction being 445.27 distributed to each county in the same proportion as that 445.28 county's administrative costs for food stamps are to the total 445.29 of all food stamp administrative costs for all counties, and 50 445.30 percent of the sanctions being distributed to each county in the 445.31 same proportion as that county's value of food stamp benefits 445.32 issued are to the total of all benefits issued for all 445.33 counties. Each county shall pay its share of the disallowance 445.34 to the state of Minnesota. When a county fails to pay the 445.35 amount due hereunder, the commissioner may deduct the amount 445.36 from reimbursement otherwise due the county, or the attorney 446.1 general, upon the request of the commissioner, may institute 446.2 civil action to recover the amount due. 446.3 (b) Notwithstanding the provisions of paragraph (a), if the 446.4 disallowance results from knowing noncompliance by one or more 446.5 counties with a specific program instruction, and that knowing 446.6 noncompliance is a matter of official county board record, the 446.7 commissioner may require payment or recover from the county or 446.8 counties, in the manner prescribed in paragraph (a), an amount 446.9 equal to the portion of the total disallowance which resulted 446.10 from the noncompliance, and may distribute the balance of the 446.11 disallowance according to paragraph (a). 446.12 (15) Develop and implement special projects that maximize 446.13 reimbursements and result in the recovery of money to the 446.14 state. For the purpose of recovering state money, the 446.15 commissioner may enter into contracts with third parties. Any 446.16 recoveries that result from projects or contracts entered into 446.17 under this paragraph shall be deposited in the state treasury 446.18 and credited to a special account until the balance in the 446.19 account reaches $1,000,000. When the balance in the account 446.20 exceeds $1,000,000, the excess shall be transferred and credited 446.21 to the general fund. All money in the account is appropriated 446.22 to the commissioner for the purposes of this paragraph. 446.23 (16) Have the authority to make direct payments to 446.24 facilities providing shelter to women and their children 446.25 according to section 256D.05, subdivision 3. Upon the written 446.26 request of a shelter facility that has been denied payments 446.27 under section 256D.05, subdivision 3, the commissioner shall 446.28 review all relevant evidence and make a determination within 30 446.29 days of the request for review regarding issuance of direct 446.30 payments to the shelter facility. Failure to act within 30 days 446.31 shall be considered a determination not to issue direct payments. 446.32 (17) Have the authority to establish and enforce the 446.33 following county reporting requirements: 446.34 (a) The commissioner shall establish fiscal and statistical 446.35 reporting requirements necessary to account for the expenditure 446.36 of funds allocated to counties for human services programs. 447.1 When establishing financial and statistical reporting 447.2 requirements, the commissioner shall evaluate all reports, in 447.3 consultation with the counties, to determine if the reports can 447.4 be simplified or the number of reports can be reduced. 447.5 (b) The county board shall submit monthly or quarterly 447.6 reports to the department as required by the commissioner. 447.7 Monthly reports are due no later than 15 working days after the 447.8 end of the month. Quarterly reports are due no later than 30 447.9 calendar days after the end of the quarter, unless the 447.10 commissioner determines that the deadline must be shortened to 447.11 20 calendar days to avoid jeopardizing compliance with federal 447.12 deadlines or risking a loss of federal funding. Only reports 447.13 that are complete, legible, and in the required format shall be 447.14 accepted by the commissioner. 447.15 (c) If the required reports are not received by the 447.16 deadlines established in clause (b), the commissioner may delay 447.17 payments and withhold funds from the county board until the next 447.18 reporting period. When the report is needed to account for the 447.19 use of federal funds and the late report results in a reduction 447.20 in federal funding, the commissioner shall withhold from the 447.21 county boards with late reports an amount equal to the reduction 447.22 in federal funding until full federal funding is received. 447.23 (d) A county board that submits reports that are late, 447.24 illegible, incomplete, or not in the required format for two out 447.25 of three consecutive reporting periods is considered 447.26 noncompliant. When a county board is found to be noncompliant, 447.27 the commissioner shall notify the county board of the reason the 447.28 county board is considered noncompliant and request that the 447.29 county board develop a corrective action plan stating how the 447.30 county board plans to correct the problem. The corrective 447.31 action plan must be submitted to the commissioner within 45 days 447.32 after the date the county board received notice of noncompliance. 447.33 (e) The final deadline for fiscal reports or amendments to 447.34 fiscal reports is one year after the date the report was 447.35 originally due. If the commissioner does not receive a report 447.36 by the final deadline, the county board forfeits the funding 448.1 associated with the report for that reporting period and the 448.2 county board must repay any funds associated with the report 448.3 received for that reporting period. 448.4 (f) The commissioner may not delay payments, withhold 448.5 funds, or require repayment under paragraph (c) or (e) if the 448.6 county demonstrates that the commissioner failed to provide 448.7 appropriate forms, guidelines, and technical assistance to 448.8 enable the county to comply with the requirements. If the 448.9 county board disagrees with an action taken by the commissioner 448.10 under paragraph (c) or (e), the county board may appeal the 448.11 action according to sections 14.57 to 14.69. 448.12 (g) Counties subject to withholding of funds under 448.13 paragraph (c) or forfeiture or repayment of funds under 448.14 paragraph (e) shall not reduce or withhold benefits or services 448.15 to clients to cover costs incurred due to actions taken by the 448.16 commissioner under paragraph (c) or (e). 448.17 (18) Allocate federal fiscal disallowances or sanctions for 448.18 audit exceptions when federal fiscal disallowances or sanctions 448.19 are based on a statewide random sample for the foster care 448.20 program under title IV-E of the Social Security Act, United 448.21 States Code, title 42, in direct proportion to each county's 448.22 title IV-E foster care maintenance claim for that period. 448.23 (19) Be responsible for ensuring the detection, prevention, 448.24 investigation, and resolution of fraudulent activities or 448.25 behavior by applicants, recipients, and other participants in 448.26 the human services programs administered by the department. 448.27 (20) Require county agencies to identify overpayments, 448.28 establish claims, and utilize all available and cost-beneficial 448.29 methodologies to collect and recover these overpayments in the 448.30 human services programs administered by the department. 448.31 (21) Have the authority to administer a drug rebate program 448.32 for drugs purchased pursuant to the senior citizen drug program 448.33 established under section 256.955 after the beneficiary's 448.34 satisfaction of any deductible established in the program. The 448.35 commissioner shall require a rebate agreement from all 448.36 manufacturers of covered drugs as defined in section 256B.0625, 449.1 subdivision 13. For each drug, the amount of the rebate shall 449.2 be equal to the basic rebate as defined for purposes of the 449.3 federal rebate program in United States Code, title 42, section 449.4 1396r-8(c)(1). This basic rebate shall be applied to 449.5 single-source and multiple-source drugs. The manufacturers must 449.6 provide full payment within 30 days of receipt of the state 449.7 invoice for the rebate within the terms and conditions used for 449.8 the federal rebate program established pursuant to section 1927 449.9 of title XIX of the Social Security Act. The manufacturers must 449.10 provide the commissioner with any information necessary to 449.11 verify the rebate determined per drug. The rebate program shall 449.12 utilize the terms and conditions used for the federal rebate 449.13 program established pursuant to section 1927 of title XIX of the 449.14 Social Security Act. 449.15 Sec. 2. Minnesota Statutes 1998, section 256B.094, 449.16 subdivision 3, is amended to read: 449.17 Subd. 3. [COORDINATION AND PROVISION OF SERVICES.] (a) In 449.18 a county or reservation where a prepaid medical assistance 449.19 provider has contracted under section 256B.031 or 256B.69 to 449.20 provide mental health services, the case management provider 449.21 shall coordinate with the prepaid provider to ensure that all 449.22 necessary mental health services required under the contract are 449.23 provided to recipients of case management services. 449.24 (b) When the case management provider determines that a 449.25 prepaid provider is not providing mental health services as 449.26 required under the contract, the case management provider shall 449.27 assist the recipient to appeal the prepaid provider's denial 449.28 pursuant to section 256.045, and may make other arrangements for 449.29 provision of the covered services. 449.30 (c) The case management provider may bill the provider of 449.31 prepaid health care services for any mental health services 449.32 provided to a recipient of case management services which the 449.33 county or tribal social services arranges for or provides and 449.34 which are included in the prepaid provider's contract, and which 449.35 were determined to be medically necessary as a result of an 449.36 appeal pursuant to section 256.045. The prepaid provider must 450.1 reimburse the mental health provider, at the prepaid provider's 450.2 standard rate for that service, for any services delivered under 450.3 this subdivision. 450.4 (d) If the county or tribal social services has not 450.5 obtained prior authorization for this service, or an appeal 450.6 results in a determination that the services were not medically 450.7 necessary, the county or tribal social services may not seek 450.8 reimbursement from the prepaid provider. 450.9 Sec. 3. Minnesota Statutes 1998, section 256B.094, 450.10 subdivision 5, is amended to read: 450.11 Subd. 5. [CASE MANAGER.] To provide case management 450.12 services, a case manager must be employed or contracted by and 450.13 authorized by the case management provider to provide case 450.14 management services and meet all requirements under section 450.15 256F.10. 450.16 Sec. 4. Minnesota Statutes 1998, section 256B.094, 450.17 subdivision 6, is amended to read: 450.18 Subd. 6. [MEDICAL ASSISTANCE REIMBURSEMENT OF CASE 450.19 MANAGEMENT SERVICES.] (a) Medical assistance reimbursement for 450.20 services under this section shall be made on a monthly basis. 450.21 Payment is based on face-to-face or telephone contacts between 450.22 the case manager and the client, client's family, primary 450.23 caregiver, legal representative, or other relevant person 450.24 identified as necessary to the development or implementation of 450.25 the goals of the individual service plan regarding the status of 450.26 the client, the individual service plan, or the goals for the 450.27 client. These contacts must meet the minimum standards in 450.28 clauses (1) and (2): 450.29 (1) there must be a face-to-face contact at least once a 450.30 month except as provided in clause (2); and 450.31 (2) for a client placed outside of the county of financial 450.32 responsibility in an excluded time facility under section 450.33 256G.02, subdivision 6, or through the Interstate Compact on the 450.34 Placement of Children, section 257.40, and the placement in 450.35 either case is more than 60 miles beyond the county boundaries, 450.36 there must be at least one contact per month and not more than 451.1 two consecutive months without a face-to-face contact. 451.2 (b) Except as provided under paragraph (c), the payment 451.3 rate is established using time study data on activities of 451.4 provider service staff and reports required under sections 451.5 245.482, 256.01, subdivision 2, paragraph (17), and 256E.08, 451.6 subdivision 8. 451.7 (c) Payments for tribes may be made according to section 451.8 256B.0625 for child welfare targeted case management provided by 451.9 Indian health services and facilities operated by a tribe or 451.10 tribal organization. 451.11 (d) Payment for case management provided by county or 451.12 tribal social services contracted vendors shall be based on a 451.13 monthly rate negotiated by the host county or tribal social 451.14 services. The negotiated rate must not exceed the rate charged 451.15 by the vendor for the same service to other payers. If the 451.16 service is provided by a team of contracted vendors, the county 451.17 or tribal social services may negotiate a team rate with a 451.18 vendor who is a member of the team. The team shall determine 451.19 how to distribute the rate among its members. No reimbursement 451.20 received by contracted vendors shall be returned to the county 451.21 or tribal social services, except to reimburse the county or 451.22 tribal social services for advance funding provided by the 451.23 county or tribal social services to the vendor. 451.24 (e) If the service is provided by a team that includes 451.25 contracted vendors and county or tribal social services staff, 451.26 the costs for county or tribal social services staff 451.27 participation in the team shall be included in the rate for 451.28 county or tribal social services provided services. In this 451.29 case, the contracted vendor and the county or tribal social 451.30 services may each receive separate payment for services provided 451.31 by each entity in the same month. To prevent duplication of 451.32 services, each entity must document, in the recipient's file, 451.33 the need for team case management and a description of the roles 451.34 and services of the team members. 451.35 Separate payment rates may be established for different 451.36 groups of providers to maximize reimbursement as determined by 452.1 the commissioner. The payment rate will be reviewed annually 452.2 and revised periodically to be consistent with the most recent 452.3 time study and other data. Payment for services will be made 452.4 upon submission of a valid claim and verification of proper 452.5 documentation described in subdivision 7. Federal 452.6 administrative revenue earned through the time study, or under 452.7 paragraph (c), shall be distributed according to earnings, to 452.8 counties, reservations, or groups of counties or reservations 452.9 which have the same payment rate under this subdivision, and to 452.10 the group of counties or reservations which are not certified 452.11 providers under section 256F.10. The commissioner shall modify 452.12 the requirements set out in Minnesota Rules, parts 9550.0300 to 452.13 9550.0370, as necessary to accomplish this. 452.14 Sec. 5. Minnesota Statutes 1998, section 256F.03, 452.15 subdivision 5, is amended to read: 452.16 Subd. 5. [FAMILY-BASED SERVICES.] "Family-based services" 452.17 means one or more of the services described in paragraphs (a) 452.18 to(f)(e) provided to families primarily in their own home for 452.19 a limited time. 452.20 (a) [CRISIS SERVICES.] "Crisis services" means 452.21 professional services provided within 24 hours of referral to 452.22 alleviate a family crisis and to offer an alternative to placing 452.23 a child outside the family home. The services are intensive and 452.24 time limited. The service may offer transition to other 452.25 appropriate community-based services. 452.26 (b) [COUNSELING SERVICES.] "Counseling services" means 452.27 professional family counseling provided to alleviate individual 452.28 and family dysfunction; provide an alternative to placing a 452.29 child outside the family home; or permit a child to return 452.30 home. The duration, frequency, and intensity of the service is 452.31 determined in the individual or family service plan. 452.32 (c) [LIFE MANAGEMENT SKILLS SERVICES.] "Life management 452.33 skills services" means paraprofessional services that teach 452.34 family members skills in such areas as parenting, budgeting, 452.35 home management, and communication. The goal is to strengthen 452.36 family skills as an alternative to placing a child outside the 453.1 family home or to permit a child to return home. A social 453.2 worker shall coordinate these services within the family case 453.3 plan. 453.4 (d)[CASE COORDINATION SERVICES.] "Case coordination453.5services" means professional services provided to an individual,453.6family, or caretaker as an alternative to placing a child453.7outside the family home, to permit a child to return home, or to453.8stabilize the long-term or permanent placement of a child.453.9Coordinated services are provided directly, are arranged, or are453.10monitored to meet the needs of a child and family. The453.11duration, frequency, and intensity of services is determined in453.12the individual or family service plan.453.13(e)[MENTAL HEALTH SERVICES.] "Mental health services" 453.14 means the professional services defined in section 245.4871, 453.15 subdivision 31. 453.16(f)(e) [EARLY INTERVENTION SERVICES.] "Early intervention 453.17 services" means family-based intervention services designed to 453.18 help at-risk families avoid crisis situations. 453.19 Sec. 6. Minnesota Statutes 1998, section 256F.05, 453.20 subdivision 8, is amended to read: 453.21 Subd. 8. [USES OF FAMILY PRESERVATION FUND GRANTS.] (a) A 453.22 county which has not demonstrated that year that its family 453.23 preservation core services are developed as provided in 453.24 subdivision 1a, must use its family preservation fund grant 453.25 exclusively for family preservation services defined in section 453.26 256F.03, subdivision 5, paragraphs (a), (b), (c), and(e)(d). 453.27 (b) A county which has demonstrated that year that its 453.28 family preservation core services are developed becomes eligible 453.29 either to continue using its family preservation fund grant as 453.30 provided in paragraph (a), or to exercise the expanded service 453.31 option under paragraph (c). 453.32 (c) The expanded service option permits an eligible county 453.33 to use its family preservation fund grant for child welfare 453.34 preventive services. For purposes of this section, child 453.35 welfare preventive services are those services directed toward a 453.36 specific child or family that further the goals of section 454.1 256F.01 and include assessments, family preservation services, 454.2 service coordination, community-based treatment, crisis nursery 454.3 services when the parents retain custody and there is no 454.4 voluntary placement agreement with a child-placing agency, 454.5 respite care except when it is provided under a medical 454.6 assistance waiver, home-based services, and other related 454.7 services. For purposes of this section, child welfare 454.8 preventive services shall not include shelter care or other 454.9 placement services under the authority of the court or public 454.10 agency to address an emergency. To exercise this option, an 454.11 eligible county must notify the commissioner in writing of its 454.12 intention to do sono later than 30 days into the quarter during454.13which it intends to beginor select this option in its county 454.14 plan, as provided in section 256F.04, subdivision 2. Effective 454.15 with the first day ofthat quarterthe grant period in which 454.16 this option is selected, the county must maintain its base level 454.17 of expenditures for child welfare preventive services and use 454.18 the family preservation fund to expand them. The base level of 454.19 expenditures for a county shall be that established under 454.20 section 256F.10, subdivision 7. For counties which have no such 454.21 base established, a comparable base shall be established with 454.22 the base year being the calendar year ending at least two 454.23 calendar quarters before the first calendar quarter in which the 454.24 county exercises its expanded service option. The commissioner 454.25 shall, at the request of the counties, reduce, suspend, or 454.26 eliminate either or both of a county's obligations to continue 454.27 the base level of expenditures and to expand child welfare 454.28 preventive services under extraordinary circumstances. 454.29 (d) Notwithstanding paragraph (a), a county that is 454.30 participating in the child protection assessments or 454.31 investigations community collaboration pilot program under 454.32 section 626.5560, or in the concurrent permanency planning pilot 454.33 program under section 257.0711, may use its family preservation 454.34 fund grant for those programs. 454.35 Sec. 7. Minnesota Statutes 1998, section 256F.10, 454.36 subdivision 1, is amended to read: 455.1 Subdivision 1. [ELIGIBILITY.] Persons under 21 years of 455.2 age who are eligible to receive medical assistance are eligible 455.3 for child welfare targeted case management services under 455.4 section 256B.094 and this section if they have received an 455.5 assessment and have been determined by the local county or 455.6 tribal social services agency to be: 455.7 (1) at risk of placement or in placement as described in 455.8 section 257.071, subdivision 1; 455.9 (2) at risk of maltreatment or experiencing maltreatment as 455.10 defined in section 626.556, subdivision 10e; or 455.11 (3) in need of protection or services as defined in section 455.12 260.015, subdivision 2a. 455.13 Sec. 8. Minnesota Statutes 1998, section 256F.10, 455.14 subdivision 4, is amended to read: 455.15 Subd. 4. [PROVIDER QUALIFICATIONS AND CERTIFICATION 455.16 STANDARDS.] The commissioner must certify each provider before 455.17 enrolling it as a child welfare targeted case management 455.18 provider of services under section 256B.094 and this section. 455.19 The certification process shall examine the provider's ability 455.20 to meet the qualification requirements and certification 455.21 standards in this subdivision and other federal and state 455.22 requirements of this service. A certified child welfare 455.23 targeted case management provider is an enrolled medical 455.24 assistance provider who is determined by the commissioner to 455.25 have all of the following: 455.26 (1) the legal authority to provide public welfare under 455.27 sections 393.01, subdivision 7, and 393.07 or a federally 455.28 recognized Indian tribe; 455.29 (2) the demonstrated capacity and experience to provide the 455.30 components of case management to coordinate and link community 455.31 resources needed by the eligible population; 455.32 (3) administrative capacity and experience in serving the 455.33 target population for whom it will provide services and in 455.34 ensuring quality of services under state and federal 455.35 requirements; 455.36 (4) the legal authority to provide complete investigative 456.1 and protective services under section 626.556, subdivision 10, 456.2 and child welfare and foster care services under section 393.07, 456.3 subdivisions 1 and 2 or a federally recognized Indian tribe; 456.4 (5) a financial management system that provides accurate 456.5 documentation of services and costs under state and federal 456.6 requirements; and 456.7 (6) the capacity to document and maintain individual case 456.8 records under state and federal requirements. 456.9 Sec. 9. Minnesota Statutes 1998, section 256F.10, 456.10 subdivision 6, is amended to read: 456.11 Subd. 6. [DISTRIBUTION OF NEW FEDERAL REVENUE.] (a) Except 456.12 for portion set aside in paragraph (b), the federal funds earned 456.13 under this section and section 256B.094 bycountiesproviders 456.14 shall be paid to eachcountyprovider based on its earnings, and 456.15 must be used by eachcountyprovider to expand preventive child 456.16 welfare services. 456.17 If a county or tribal social services chooses to be a provider 456.18 of child welfare targeted case management and if that county or 456.19 tribal social services also joins a local children's mental 456.20 health collaborative as authorized by the 1993 legislature, then 456.21 the federal reimbursement received by the county or tribal 456.22 social services for providing child welfare targeted case 456.23 management services to children served by the local 456.24 collaborative shall be transferred by the county or tribal 456.25 social services to the integrated fund. The federal 456.26 reimbursement transferred to the integrated fund by the 456.27 county or tribal social services must not be used for 456.28 residential care other than respite care described under 456.29 subdivision 7, paragraph (d). 456.30 (b) The commissioner shall set aside a portion of the 456.31 federal funds earned under this section to repay the special 456.32 revenue maximization account under section 256.01, subdivision 456.33 2, clause (15). The repayment is limited to: 456.34 (1) the costs of developing and implementing this section 456.35 and sections 256.8711 and 256B.094; 456.36 (2) programming the information systems; and 457.1 (3) the lost federal revenue for the central office claim 457.2 directly caused by the implementation of these sections. 457.3 Any unexpended funds from the set aside under this 457.4 paragraph shall be distributed tocountiesproviders according 457.5 to paragraph (a). 457.6 Sec. 10. Minnesota Statutes 1998, section 256F.10, 457.7 subdivision 7, is amended to read: 457.8 Subd. 7. [EXPANSION OF SERVICES AND BASE LEVEL OF 457.9 EXPENDITURES.] (a) Counties and tribal social services must 457.10 continue the base level of expenditures for preventive child 457.11 welfare services from either or both of any state, county, or 457.12 federal funding source, which, in the absence of federal funds 457.13 earned under this section, would have been available for these 457.14 services. The commissioner shall review the county or tribal 457.15 social services expenditures annually using reports required 457.16 under sections 245.482, 256.01, subdivision 2, paragraph 17, and 457.17 256E.08, subdivision 8, to ensure that the base level of 457.18 expenditures for preventive child welfare services is continued 457.19 from sources other than the federal funds earned under this 457.20 section. 457.21 (b) The commissioner may reduce, suspend, or eliminate 457.22 either or both of a county's or tribal social services' 457.23 obligations to continue the base level of expenditures and to 457.24 expand child welfare preventive services if the commissioner 457.25 determines that one or more of the following conditions apply to 457.26 that county or reservation: 457.27 (1) imposition of levy limits that significantly reduce 457.28 available social service funds; 457.29 (2) reduction in the net tax capacity of the taxable 457.30 property within a county or reservation that significantly 457.31 reduces available social service funds; 457.32 (3) reduction in the number of children under age 19 in the 457.33 county or reservation by 25 percent when compared with the 457.34 number in the base year using the most recent data provided by 457.35 the state demographer's office; or 457.36 (4) termination of the federal revenue earned under this 458.1 section. 458.2 (c) The commissioner may suspend for one year either or 458.3 both of a county's or tribal social services' obligations to 458.4 continue the base level of expenditures and to expand child 458.5 welfare preventive services if the commissioner determines that 458.6 in the previous year one or more of the following conditions 458.7 applied to that county or reservation: 458.8 (1) the total number of children in placement under 458.9 sections 257.071 and 393.07, subdivisions 1 and 2, has been 458.10 reduced by 50 percent from the total number in the base year; or 458.11 (2) the average number of children in placement under 458.12 sections 257.071 and 393.07, subdivisions 1 and 2, on the last 458.13 day of each month is equal to or less than one child per 1,000 458.14 children in the county or reservation. 458.15 (d) For the purposes of this section, child welfare 458.16 preventive services are those services directed toward a 458.17 specific child or family that further the goals of section 458.18 256F.01 and include assessments, family preservation services, 458.19 service coordination, community-based treatment, crisis nursery 458.20 services when the parents retain custody and there is no 458.21 voluntary placement agreement with a child-placing agency, 458.22 respite care except when it is provided under a medical 458.23 assistance waiver, home-based services, and other related 458.24 services. For the purposes of this section, child welfare 458.25 preventive services shall not include shelter care placements 458.26 under the authority of the court or public agency to address an 458.27 emergency, residential services except for respite care, child 458.28 care for the purposes of employment and training, adult 458.29 services, services other than child welfare targeted case 458.30 management when they are provided under medical assistance, 458.31 placement services, or activities not directed toward a specific 458.32 child or family. Respite care must be planned, routine care to 458.33 support the continuing residence of the child with its family or 458.34 long-term primary caretaker and must not be provided to address 458.35 an emergency. 458.36 (e) For the counties and tribal social services beginning 459.1 to claim federal reimbursement for services under this section 459.2 and section 256B.094, the base year is the calendar year ending 459.3 at least two calendar quarters before the first calendar quarter 459.4 in which thecountyprovider begins claiming reimbursement. For 459.5 the purposes of this section, the base level of expenditures is 459.6 the level of county or tribal social services expenditures in 459.7 the base year for eligible child welfare preventive services 459.8 described in this subdivision. 459.9 Sec. 11. Minnesota Statutes 1998, section 256F.10, 459.10 subdivision 8, is amended to read: 459.11 Subd. 8. [PROVIDER RESPONSIBILITIES.] (a) Notwithstanding 459.12 section 256B.19, subdivision 1, for the purposes of child 459.13 welfare targeted case management under section 256B.094 and this 459.14 section, the nonfederal share of costs shall be provided by the 459.15 provider of child welfare targeted case management from sources 459.16 other than federal funds or funds used to match other federal 459.17 funds except when allowed by federal law or agreement. 459.18 (b) Provider expenditures eligible for federal 459.19 reimbursement under this section must not be made from federal 459.20 funds or funds used to match other federal funds except when 459.21 allowed by federal law or agreement. 459.22 (c) The commissioner may suspend, reduce, or terminate the 459.23 federal reimbursement to a provider that does not meet the 459.24 reporting or other requirements of section 256B.094 and this 459.25 section. The county or reservation is responsible for any 459.26 federal disallowances. The county or reservation may share this 459.27 responsibility with its contracted vendors. 459.28 Sec. 12. Minnesota Statutes 1998, section 256F.10, 459.29 subdivision 10, is amended to read: 459.30 Subd. 10. [CENTRALIZED DISBURSEMENT OF MEDICAL ASSISTANCE 459.31 PAYMENTS.] Notwithstanding section 256B.041,countyprovider 459.32 payments for the cost of child welfare targeted case management 459.33 services shall not be made to the state treasurer. For the 459.34 purposes of child welfare targeted case management services 459.35 under section 256B.094 and this section, the centralized 459.36 disbursement of payments to providers under section 256B.041 460.1 consists only of federal earnings from services provided under 460.2 section 256B.094 and this section. 460.3 Sec. 13. Minnesota Statutes 1998, section 257.071, 460.4 subdivision 1, is amended to read: 460.5 Subdivision 1. [PLACEMENT; PLAN.] (a) A case plan shall be 460.6 prepared within 30 days after any child is placed in a 460.7 residential facility by court order or by the voluntary release 460.8 of the child by the parent or parents. 460.9 For purposes of this section, a residential facility means 460.10 any group home, family foster home or other publicly supported 460.11 out-of-home residential facility, including any out-of-home 460.12 residential facility under contract with the state, county or 460.13 other political subdivision, or any agency thereof, to provide 460.14 those services or foster care as defined in section 260.015, 460.15 subdivision 7. 460.16 (b) When a child is in placement, the responsible local 460.17 social services agency shall make diligent efforts to identify, 460.18 locate, and, where appropriate, offer services to both parents 460.19 of the child. If a noncustodial or nonadjudicated parent is 460.20 willing and capable of providing for the day-to-day care of the 460.21 child, the local social services agency may seek authority from 460.22 the custodial parent or the court to have that parent assume 460.23 day-to-day care of the child. If a parent is not an adjudicated 460.24 parent, the local social services agency shall require the 460.25 nonadjudicated parent to cooperate with paternity establishment 460.26 procedures as part of the case plan. 460.27 (c) If, after assessment, the local social services agency 460.28 determines that the child cannot be in the day-to-day care of 460.29 either parent, the agency shall prepare a case plan addressing 460.30 the conditions that each parent must mitigate before the child 460.31 could be in that parent's day-to-day care. 460.32 (d) If, after the provision of services following a case 460.33 plan under this section and ordered by the juvenile court, the 460.34 child cannot return to the care of the parent from whom the 460.35 child was removed or who had legal custody at the time the child 460.36 was placed in foster care, the agency may petition on behalf of 461.1 a noncustodial parent to establish legal custody with that 461.2 parent under section 260.191, subdivision 3b. If paternity has 461.3 not already been established, it may be established in the same 461.4 proceeding in the manner provided for under this chapter. 461.5 The responsible social services agency may be relieved of 461.6 the requirement to locate and offer services to both parents by 461.7 the juvenile court upon a finding of good cause after the filing 461.8 of a petition under section 260.131. 461.9 (e) For the purposes of this section, a case plan means a 461.10 written document which is ordered by the court or which is 461.11 prepared by the socialserviceservices agency responsible for 461.12 the residential facility placement and is signed by the parent 461.13 or parents, or other custodian, of the child, the child's legal 461.14 guardian, the socialserviceservices agency responsible for the 461.15 residential facility placement, and, if possible, the child. 461.16 The document shall be explained to all persons involved in its 461.17 implementation, including the child who has signed the document, 461.18 and shall set forth: 461.19 (1) the specific reasons for the placement of the child in 461.20 a residential facility, including a description of the problems 461.21 or conditions in the home of the parent or parents which 461.22 necessitated removal of the child from home; 461.23 (2) the specific actions to be taken by the parent or 461.24 parents of the child to eliminate or correct the problems or 461.25 conditions identified in clause (1), and the time period during 461.26 which the actions are to be taken; 461.27 (3) the financial responsibilities and obligations, if any, 461.28 of the parents for the support of the child during the period 461.29 the child is in the residential facility; 461.30 (4) the visitation rights and obligations of the parent or 461.31 parents or other relatives as defined in section 260.181, if 461.32 such visitation is consistent with the best interest of the 461.33 child, during the period the child is in the residential 461.34 facility; 461.35 (5) the social and other supportive services to be provided 461.36 to the parent or parents of the child, the child, and the 462.1 residential facility during the period the child is in the 462.2 residential facility; 462.3 (6) the date on which the child is expected to be returned 462.4 to and safely maintained in the home of the parent or parents or 462.5 placed for adoption or otherwise permanently removed from the 462.6 care of the parent by court order; 462.7 (7) the nature of the effort to be made by the social 462.8serviceservices agency responsible for the placement to reunite 462.9 the family;and462.10 (8) notice to the parent or parents: 462.11 (i) that placement of the child in foster care may result 462.12 in termination of parental rights but only after notice and a 462.13 hearing as provided in chapter 260.; and 462.14 (ii) in cases where the agency has determined that both 462.15 reasonable efforts to reunify the child with the parents, and 462.16 reasonable efforts to place the child in a permanent home away 462.17 from the parent that may become legally permanent are 462.18 appropriate, notice of: 462.19 (A) time limits on the length of placement and of 462.20 reunification services; 462.21 (B) the nature of the services available to the parent; 462.22 (C) the consequences to the parent and the child if the 462.23 parent fails or is unable to use services to correct the 462.24 circumstances that led to the child's placement; 462.25 (D) the first consideration for relative placement; and 462.26 (E) the benefit to the child in getting the child out of 462.27 residential care as soon as possible, preferably by returning 462.28 the child home, but if that is not possible, through legally 462.29 permanent placement of the child away from the parent; 462.30 (9) a permanency hearing under section 260.191, subdivision 462.31 3b, or a termination of parental rights hearing under sections 462.32 260.221 to 260.245, where the agency asks the court to find that 462.33 the child should be permanently placed away from the parent and 462.34 includes documentation of the steps taken by the responsible 462.35 social services agency to find an adoptive family or other 462.36 legally permanent living arrangement for the child, to place the 463.1 child with an adoptive family, a fit and willing relative 463.2 through an award of permanent legal and physical custody, or in 463.3 another planned and legally permanent living arrangement. The 463.4 documentation must include child-specific recruitment efforts; 463.5 and 463.6 (10) if the court has issued an order terminating the 463.7 rights of both parents of the child or of the only known, living 463.8 parent of the child, documentation of steps to finalize the 463.9 adoption or legal guardianship of the child. 463.10 (f) The parent or parents and the child each shall have the 463.11 right to legal counsel in the preparation of the case plan and 463.12 shall be informed of the right at the time of placement of the 463.13 child. The child shall also have the right to a guardian ad 463.14 litem. If unable to employ counsel from their own resources, 463.15 the court shall appoint counsel upon the request of the parent 463.16 or parents or the child or the child's legal guardian. The 463.17 parent or parents may also receive assistance from any person or 463.18 socialserviceservices agency in preparation of the case plan. 463.19 After the plan has been agreed upon by the parties 463.20 involved, the foster parents shall be fully informed of the 463.21 provisions of the case plan and shall be provided a copy of the 463.22 plan. 463.23 (g) When an agency accepts a child for placement, the 463.24 agency shall determine whether the child has had a physical 463.25 examination by or under the direction of a licensed physician 463.26 within the 12 months immediately preceding the date when the 463.27 child came into the agency's care. If there is documentation 463.28 that the child has had such an examination within the last 12 463.29 months, the agency is responsible for seeing that the child has 463.30 another physical examination within one year of the documented 463.31 examination and annually in subsequent years. If the agency 463.32 determines that the child has not had a physical examination 463.33 within the 12 months immediately preceding placement, the agency 463.34 shall ensure that the child has the examination within 30 days 463.35 of coming into the agency's care and once a year in subsequent 463.36 years. 464.1 Sec. 14. Minnesota Statutes 1998, section 257.071, 464.2 subdivision 1d, is amended to read: 464.3 Subd. 1d. [RELATIVE SEARCH; NATURE.] (a) As soon as 464.4 possible, but in any event within six months after a child is 464.5 initially placed in a residential facility, the local social 464.6 services agency shall identify any relatives of the child and 464.7 notify them of the need for a foster care home for the child and 464.8 of the possibility of the need for a permanent out-of-home 464.9 placement of the child. Relatives should also be notified that 464.10 a decision not to be a placement resource at the beginning of 464.11 the case may affect the relative being considered for placement 464.12 of the child with that relative later. The relatives must be 464.13 notified that they must keep the local social services agency 464.14 informed of their current address in order to receive notice 464.15 that a permanent placement is being sought for the child. A 464.16 relative who fails to provide a current address to the local 464.17 social services agency forfeits the right to notice of the 464.18 possibility of permanent placement. If the child's parent 464.19 refuses to give the responsible social services agency 464.20 information sufficient to identify relatives of the child, the 464.21 agency shall determine whether the parent's refusal is in the 464.22 child's best interests. If the agency determines the parent's 464.23 refusal is not in the child's best interests, the agency shall 464.24 file a petition under section 260.131, and shall ask the 464.25 juvenile court to order the parent to provide the necessary 464.26 information. 464.27 (b) Unless required under the Indian Child Welfare Act or 464.28 relieved of this duty by the court because the child is placed 464.29 with an appropriate relative who wishes to provide a permanent 464.30 home for the child or the child is placed with a foster home 464.31 that has committed to being the legally permanent placement for 464.32 the child and the responsible social services agency approves of 464.33 that foster home for permanent placement of the child, when the 464.34 agency determines that it is necessary to prepare for the 464.35 permanent placement determination hearing, or in anticipation of 464.36 filing a termination of parental rights petition, the agency 465.1 shall send notice to the relatives, any adult with whom the 465.2 child is currently residing, any adult with whom the child has 465.3 resided for one year or longer in the past, and any adults who 465.4 have maintained a relationship or exercised visitation with the 465.5 child as identified in the agency case plan. The notice must 465.6 state that a permanent home is sought for the child and that the 465.7 individuals receiving the notice may indicate to the agency 465.8 their interest in providing a permanent home. The notice must 465.9 state that within 30 days of receipt of the notice an individual 465.10 receiving the notice must indicate to the agency the 465.11 individual's interest in providing a permanent home for the 465.12 child or that the individual may lose the opportunity to be 465.13 considered for a permanent placement. This notice need not be 465.14 sent if the child is placed with an appropriate relative who 465.15 wishes to provide a permanent home for the child. 465.16 Sec. 15. Minnesota Statutes 1998, section 257.071, 465.17 subdivision 4, is amended to read: 465.18 Subd. 4. [REVIEW OF DEVELOPMENTALLY DISABLED AND 465.19 EMOTIONALLY HANDICAPPED CHILD PLACEMENTS.] If a developmentally 465.20 disabled child, as that term is defined in United States Code, 465.21 title 42, section 6001 (7), as amended through December 31, 465.22 1979, or a child diagnosed with an emotional handicap as defined 465.23 in section 252.27, subdivision 1a, has been placed in a 465.24 residential facility pursuant to a voluntary release by the 465.25 child's parent or parents because of the child's handicapping 465.26 conditions or need for long-term residential treatment or 465.27 supervision, the socialserviceservices agency responsible for 465.28 the placement shall bring a petition for review of the child's 465.29 foster care status, pursuant to section 260.131,subdivision 1a,465.30rather than aafter the child has been in placement for six 465.31 months. If a child is in placement due solely to the child's 465.32 handicapping condition and custody of the child is not 465.33 transferred to the responsible social services agency under 465.34 section 260.191, subdivision 1, paragraph (a), clause (2), no 465.35 petitionasis required by section 260.191, subdivision 3b,465.36after the child has been in foster care for six months or, in466.1the case of a child with an emotional handicap, after the child466.2has been in a residential facility for six months. Whenever a 466.3 petition for review is brought pursuant to this subdivision, a 466.4 guardian ad litem shall be appointed for the child. 466.5 Sec. 16. Minnesota Statutes 1998, section 257.85, 466.6 subdivision 2, is amended to read: 466.7 Subd. 2. [SCOPE.] The provisions of this section apply to 466.8 those situations in which the legal and physical custody of a 466.9 child is established with a relative or important friend with 466.10 whom the child has resided or had significant contact according 466.11 to section 260.191, subdivision 3b, by a court order issued on 466.12 or after July 1, 1997. 466.13 Sec. 17. Minnesota Statutes 1998, section 257.85, 466.14 subdivision 3, is amended to read: 466.15 Subd. 3. [DEFINITIONS.] For purposes of this section, the 466.16 terms defined in this subdivision have the meanings given them. 466.17 (a) "AFDC orMFIP standard" means themonthly standard of466.18need used to calculate assistance under the AFDC program, the466.19 transitional standard used to calculate assistance under the 466.20 MFIP-S program, or, ifneither of those is applicablepermanent 466.21 legal and physical custody of the child is given to a relative 466.22 custodian residing outside of Minnesota, the analogous 466.23 transitional standard or standard of need used to calculate 466.24 assistance under theMFIP or MFIP-R programsTANF program of the 466.25 state where the relative custodian lives. 466.26 (b) "Local agency" means the local socialserviceservices 466.27 agency with legal custody of a child prior to the transfer of 466.28 permanent legal and physical custodyto a relative. 466.29 (c) "Permanent legal and physical custody" means permanent 466.30 legal and physical custody ordered by a Minnesota juvenile court 466.31 under section 260.191, subdivision 3b. 466.32 (d) "Relative"means an individual, other than a parent,466.33who is related to a child by blood, marriage, or adoptionhas 466.34 the meaning given in section 260.015, subdivision 13. 466.35 (e) "Relative custodian" means arelative of a child for466.36whom the relativeperson who has permanent legal and physical 467.1 custody of a child. When siblings, including half-siblings and 467.2 step siblings, are placed together inthepermanent legal and 467.3 physical custodyof a relative of one of the siblings, the 467.4 person receiving permanent legal and physical custody of the 467.5 siblings is considered a relative custodian of all of the 467.6 siblings for purposes of this section. 467.7 (f) "Relative custody assistance agreement" means an 467.8 agreement entered into between a local agency andthe relative467.9ofachildperson who has been or will be awarded permanent 467.10 legal and physical custody ofthea child. 467.11 (g) "Relative custody assistance payment" means a monthly 467.12 cash grant made to a relative custodian pursuant to a relative 467.13 custody assistance agreement and in an amount calculated under 467.14 subdivision 7. 467.15 (h) "Remains in the physical custody of the relative 467.16 custodian" means that the relative custodian is providing 467.17 day-to-day care for the child and that the child lives with the 467.18 relative custodian; absence from the relative custodian's home 467.19 for a period of more than 120 days raises a presumption that the 467.20 child no longer remains in the physical custody of the relative 467.21 custodian. 467.22 Sec. 18. Minnesota Statutes 1998, section 257.85, 467.23 subdivision 7, is amended to read: 467.24 Subd. 7. [AMOUNT OF RELATIVE CUSTODY ASSISTANCE PAYMENTS.] 467.25 (a) The amount of a monthly relative custody assistance payment 467.26 shall be determined according to the provisions of this 467.27 paragraph. 467.28 (1) The total maximum assistance rate is equal to the base 467.29 assistance rate plus, if applicable, the supplemental assistance 467.30 rate. 467.31 (i) The base assistance rate is equal to the maximum amount 467.32 that could be received as basic maintenance for a child of the 467.33 same age under the adoption assistance program. 467.34 (ii) The local agency shall determine whether the child has 467.35 physical, mental, emotional, or behavioral disabilities that 467.36 require care, supervision, or structure beyond that ordinarily 468.1 provided in a family setting to children of the same age such 468.2 that the child would be eligible for supplemental maintenance 468.3 payments under the adoption assistance program if an adoption 468.4 assistance agreement were entered on the child's behalf. If the 468.5 local agency determines that the child has such a disability, 468.6 the supplemental assistance rate shall be the maximum amount of 468.7 monthly supplemental maintenance payment that could be received 468.8 on behalf of a child of the same age, disabilities, and 468.9 circumstances under the adoption assistance program. 468.10 (2) The net maximum assistance rate is equal to the total 468.11 maximum assistance rate from clause (1) less the following 468.12 offsets: 468.13 (i) if the child is or will be part of an assistance unit 468.14 receiving anAFDC,MFIP-S, or other MFIPgrant or a grant from a 468.15 similar program of another state, the portion of theAFDC or468.16 MFIP standard relating to the child as calculated under 468.17 paragraph (b), clause (2); 468.18 (ii) Supplemental Security Income payments received by or 468.19 on behalf of the child; 468.20 (iii) veteran's benefits received by or on behalf of the 468.21 child; and 468.22 (iv) any other income of the child, including child support 468.23 payments made on behalf of the child. 468.24 (3) The relative custody assistance payment to be made to 468.25 the relative custodian shall be a percentage of the net maximum 468.26 assistance rate calculated in clause (2) based upon the gross 468.27 income of the relative custodian's family, including the child 468.28 for whom the relative custodian has permanent legal and physical 468.29 custody. In no case shall the amount of the relative custody 468.30 assistance payment exceed that which the child could qualify for 468.31 under the adoption assistance program if an adoption assistance 468.32 agreement were entered on the child's behalf. The relative 468.33 custody assistance payment shall be calculated as follows: 468.34 (i) if the relative custodian's gross family income is less 468.35 than or equal to 200 percent of federal poverty guidelines, the 468.36 relative custody assistance payment shall be the full amount of 469.1 the net maximum assistance rate; 469.2 (ii) if the relative custodian's gross family income is 469.3 greater than 200 percent and less than or equal to 225 percent 469.4 of federal poverty guidelines, the relative custody assistance 469.5 payment shall be 80 percent of the net maximum assistance rate; 469.6 (iii) if the relative custodian's gross family income is 469.7 greater than 225 percent and less than or equal to 250 percent 469.8 of federal poverty guidelines, the relative custody assistance 469.9 payment shall be 60 percent of the net maximum assistance rate; 469.10 (iv) if the relative custodian's gross family income is 469.11 greater than 250 percent and less than or equal to 275 percent 469.12 of federal poverty guidelines, the relative custody assistance 469.13 payment shall be 40 percent of the net maximum assistance rate; 469.14 (v) if the relative custodian's gross family income is 469.15 greater than 275 percent and less than or equal to 300 percent 469.16 of federal poverty guidelines, the relative custody assistance 469.17 payment shall be 20 percent of the net maximum assistance rate; 469.18 or 469.19 (vi) if the relative custodian's gross family income is 469.20 greater than 300 percent of federal poverty guidelines, no 469.21 relative custody assistance payment shall be made. 469.22 (b)This paragraph specifies the provisions pertaining to469.23the relationship between relative custody assistance and AFDC,469.24MFIP-S, or other MFIP programsThe following provisions cover 469.25 the relationship between relative custody assistance and 469.26 assistance programs: 469.27 (1) The relative custodian of a child for whom the relative 469.28 custodian is receiving relative custody assistance is expected 469.29 to seek whatever assistance is available for the child 469.30 throughthe AFDC,MFIP-S,orother MFIP, if the relative 469.31 custodian resides in a state other than Minnesota, or similar 469.32 programs of that state. If a relative custodian fails to apply 469.33 for assistance throughAFDC,MFIP-S,or otherMFIPprogram for 469.34 which the child is eligible, the child's portion of theAFDC or469.35 MFIP standard will be calculated as if application had been made 469.36 and assistance received;. 470.1 (2) The portion of theAFDC orMFIP standard relating to 470.2 each child for whom relative custody assistance is being 470.3 received shall be calculated as follows: 470.4 (i) determine the totalAFDC orMFIP standard for the 470.5 assistance unit; 470.6 (ii) determine the amount that theAFDC orMFIP standard 470.7 would have been if the assistance unit had not included the 470.8 children for whom relative custody assistance is being received; 470.9 (iii) subtract the amount determined in item (ii) from the 470.10 amount determined in item (i); and 470.11 (iv) divide the result in item (iii) by the number of 470.12 children for whom relative custody assistance is being received 470.13 that are part of the assistance unit; or. 470.14 (3) If a child for whom relative custody assistance is 470.15 being received is not eligible for assistance throughthe AFDC,470.16 MFIP-S,orother MFIPsimilar programs of another state, the 470.17 portion ofAFDC orMFIP standard relating to that child shall be 470.18 equal to zero. 470.19 Sec. 19. Minnesota Statutes 1998, section 257.85, 470.20 subdivision 9, is amended to read: 470.21 Subd. 9. [RIGHT OF APPEAL.] A relative custodian who 470.22 enters or seeks to enter into a relative custody assistance 470.23 agreement with a local agency has the right to appeal to the 470.24 commissioner according to section 256.045 when the local agency 470.25 establishes, denies, terminates, or modifies the agreement. 470.26 Upon appeal, the commissioner may review only: 470.27 (1) whether the local agency has met the legal requirements 470.28 imposed by this chapter for establishing, denying, terminating, 470.29 or modifying the agreement; 470.30 (2) whether the amount of the relative custody assistance 470.31 payment was correctly calculated under the method in subdivision 470.32 7; 470.33 (3) whether the local agency paid for correct time periods 470.34 under the relative custody assistance agreement; 470.35 (4) whether the child remains in the physical custody of 470.36 the relative custodian; 471.1 (5) whether the local agency correctlycalculatedmodified 471.2 the amount of the supplemental assistance rate based on a change 471.3 in the child's physical, mental, emotional, or behavioral needs, 471.4 or based on the relative custodian's failure todocumentprovide 471.5 documentation, after the local agency has requested such 471.6 documentation, that thecontinuing need for the supplemental471.7assistance rate after the local agency has requested such471.8documentationchild continues to have physical, mental, 471.9 emotional, or behavioral needs that support the current amount 471.10 of relative custody assistance; and 471.11 (6) whether the local agency correctlycalculatedmodified 471.12 or terminated the amount of relative custody assistance based on 471.13 a change in the gross income of the relative custodian's family 471.14 or based on the relative custodian's failure to provide 471.15 documentation of the gross income of the relative custodian's 471.16 family after the local agency has requested such documentation. 471.17 Sec. 20. Minnesota Statutes 1998, section 257.85, 471.18 subdivision 11, is amended to read: 471.19 Subd. 11. [FINANCIAL CONSIDERATIONS.] (a) Payment of 471.20 relative custody assistance under a relative custody assistance 471.21 agreement is subject to the availability of state funds and 471.22 payments may be reduced or suspended on order of the 471.23 commissioner if insufficient funds are available. 471.24 (b) Upon receipt from a local agency of a claim for 471.25 reimbursement, the commissioner shall reimburse the local agency 471.26 in an amount equal to 100 percent of the relative custody 471.27 assistance payments provided to relative custodians. The local 471.28 agency may not seek and the commissioner shall not provide 471.29 reimbursement for the administrative costs associated with 471.30 performing the duties described in subdivision 4. 471.31 (c) For the purposes of determining eligibility or payment 471.32 amounts underthe AFDC,MFIP-S,and other MFIP programs,471.33 relative custody assistance payments shall beconsidered471.34 excluded in determining the family's available income. 471.35 Sec. 21. Minnesota Statutes 1998, section 259.29, 471.36 subdivision 2, is amended to read: 472.1 Subd. 2. [PLACEMENT WITH RELATIVEOR, FRIEND, OR MARRIED 472.2 COUPLE.] The authorized child-placing agency shall consider 472.3 placement, consistent with the child's best interests and in the 472.4 following order, with (1) a relative or relatives of the 472.5 child,or(2) an important friend with whom the child has 472.6 resided or had significant contact, or (3) a married couple. In 472.7 implementing this section, an authorized child-placing agency 472.8 may disclose private or confidential data, as defined in section 472.9 13.02, to relatives of the child for the purpose of locating a 472.10 suitable adoptive home. The agency shall disclose only data 472.11 that is necessary to facilitate implementing the preference. 472.12 If the child's birth parent or parents explicitly request 472.13 that placement with relatives or important friends not be 472.14 considered, the authorized child-placing agency shall honor that 472.15 request consistent with the best interests of the child. 472.16 If the child's birth parent or parents express a preference 472.17 for placing the child in an adoptive home of the same or a 472.18 similar religious background to that of the birth parent or 472.19 parents, the agency shall place the child with a family that 472.20 meets the birth parent's religious preference. 472.21 This subdivision does not affect the Indian Child Welfare 472.22 Act, United States Code, title 25, sections 1901 to 1923, and 472.23 the Minnesota Indian Family Preservation Act, sections 257.35 to 472.24 257.3579. 472.25 Sec. 22. Minnesota Statutes 1998, section 259.67, 472.26 subdivision 6, is amended to read: 472.27 Subd. 6. [RIGHT OF APPEAL.] (a) The adoptive parents have 472.28 the right to appeal to the commissioner pursuant to section 472.29 256.045, when the commissioner denies, discontinues, or modifies 472.30 the agreement. 472.31 (b) Adoptive parents who believe that their adopted child 472.32 was incorrectly denied adoption assistance, or who did not seek 472.33 adoption assistance on the child's behalf because of being 472.34 provided with inaccurate or insufficient information about the 472.35 child or the adoption assistance program, may request a hearing 472.36 under section 256.045. Notwithstanding subdivision 2, the 473.1 purpose of the hearing shall be to determine whether, under 473.2 standards established by the federal Department of Health and 473.3 Human Services, the circumstances surrounding the child's 473.4 adoption warrant making an adoption assistance agreement on 473.5 behalf of the child after the final decree of adoption has been 473.6 issued. The commissioner shall enter into an adoption 473.7 assistance agreement on the child's behalf if it is determined 473.8 that: 473.9 (1) at the time of the adoption and at the time the request 473.10 for a hearing was submitted the child was eligible for adoption 473.11 assistance under United States Code, title 42, chapter 7, 473.12 subchapter IV, part E, sections 670 to 679a, at the time of the 473.13 adoptionand at the time the request for a hearing was submitted473.14but, because of extenuating circumstances, did not receiveor 473.15 for state funded adoption assistance under subdivision 4; and 473.16 (2) an adoption assistance agreement was not entered into 473.17 on behalf of the child before the final decree of adoption 473.18 because of extenuating circumstances as the term is used in the 473.19 standards established by the federal Department of Health and 473.20 Human Services. An adoption assistance agreement made under 473.21 this paragraph shall be effective the date the request for a 473.22 hearing was received by the commissioner or the local agency. 473.23 Sec. 23. Minnesota Statutes 1998, section 259.67, 473.24 subdivision 7, is amended to read: 473.25 Subd. 7. [REIMBURSEMENT OF COSTS.] (a) Subject to rules of 473.26 the commissioner, and the provisions of this subdivision 473.27 aMinnesota-licensedchild-placing agency licensed in Minnesota 473.28 or any other state, or local social services agency shall 473.29 receive a reimbursement from the commissioner equal to 100 473.30 percent of the reasonable and appropriate cost of providing 473.31 adoption services for a child certified as eligible for adoption 473.32 assistance under subdivision 4. Such assistance may include 473.33 adoptive family recruitment, counseling, and special training 473.34 when needed. AMinnesota-licensedchild-placing agency licensed 473.35 in Minnesota or any other state shall receive reimbursement for 473.36 adoption services it purchases for or directly provides to an 474.1 eligible child. A local social services agency shall receive 474.2 such reimbursement only for adoption services it purchases for 474.3 an eligible child. 474.4 (b) AMinnesota-licensedchild-placing agency licensed in 474.5 Minnesota or any other state or local social services agency 474.6 seeking reimbursement under this subdivision shall enter into a 474.7 reimbursement agreement with the commissioner before providing 474.8 adoption services for which reimbursement is sought. No 474.9 reimbursement under this subdivision shall be made to an agency 474.10 for services provided prior to entering a reimbursement 474.11 agreement. Separate reimbursement agreements shall be made for 474.12 each child and separate records shall be kept on each child for 474.13 whom a reimbursement agreement is made. Funds encumbered and 474.14 obligated under such an agreement for the child remain available 474.15 until the terms of the agreement are fulfilled or the agreement 474.16 is terminated. 474.17 (c) When a local social services agency uses a purchase of 474.18 service agreement to provide services reimbursable under a 474.19 reimbursement agreement, the commissioner may make reimbursement 474.20 payments directly to the agency providing the service if direct 474.21 reimbursement is specified by the purchase of service agreement, 474.22 and if the request for reimbursement is submitted by the local 474.23 social services agency along with a verification that the 474.24 service was provided. 474.25 Sec. 24. Minnesota Statutes 1998, section 259.73, is 474.26 amended to read: 474.27 259.73 [REIMBURSEMENT OF NONRECURRING ADOPTION EXPENSES.] 474.28 The commissioner of human services shall provide 474.29 reimbursement of up to $2,000 to the adoptive parent or parents 474.30 for costs incurred in adopting a child with special needs. The 474.31 commissioner shall determine the child's eligibility for 474.32 adoption expense reimbursement under title IV-E of the Social 474.33 Security Act, United States Code, title 42, sections 670 to 474.34 676. To be reimbursed, costs must be reasonable, necessary, and 474.35 directly related to the legal adoption of the child. 474.36 Sec. 25. Minnesota Statutes 1998, section 259.85, 475.1 subdivision 2, is amended to read: 475.2 Subd. 2. [ELIGIBILITY CRITERIA.] A child may be certified 475.3 by the local socialserviceservices agency as eligible for a 475.4 postadoption service grant after a final decree of adoptionand475.5before the child's 18th birthdayif: 475.6(a)(1) the child was a ward of the commissioner or a 475.7 Minnesota licensed child-placing agency before adoption; 475.8(b)(2) the child had special needs at the time of adoption. 475.9 For the purposes of this section, "special needs" means a child 475.10 who had a physical, mental, emotional, or behavioral disability 475.11 at the time of an adoption or has a preadoption background to 475.12 which the current development of such disabilities can be 475.13 attributed;and475.14(c)(3) the adoptive parents have exhausted all other 475.15 available resources. Available resources include public income 475.16 support programs, medical assistance, health insurance coverage, 475.17 services available through community resources, and any other 475.18 private or public benefits or resources available to the family 475.19 or to the child to meet the child's special needs; and 475.20 (4) the child is under 18 years of age, or if the child is 475.21 under 22 years of age and remains dependent on the adoptive 475.22 parent or parents for care and financial support and is enrolled 475.23 in a secondary education program as a full-time student. 475.24 Sec. 26. Minnesota Statutes 1998, section 259.85, 475.25 subdivision 3, is amended to read: 475.26 Subd. 3. [CERTIFICATION STATEMENT.] The local social 475.27serviceservices agency shall certify a child's eligibility for 475.28 a postadoption service grant in writing to the commissioner. 475.29 The certification statement shall include: 475.30 (1) a description and history of the special needs upon 475.31 which eligibility is based;and475.32 (2) separate certification for each of the eligibility 475.33 criteria under subdivision 2, that the criteria are met; and 475.34 (3) applicable supporting documentation including: 475.35 (i) the child's individual service plan; 475.36 (ii) medical, psychological, or special education 476.1 evaluations; 476.2 (iii) documentation that all other resources have been 476.3 exhausted; and 476.4 (iv) an estimate of the costs necessary to meet the special 476.5 needs of the child. 476.6 Sec. 27. Minnesota Statutes 1998, section 259.85, 476.7 subdivision 5, is amended to read: 476.8 Subd. 5. [GRANT PAYMENTS.] The amount of the postadoption 476.9 service grant payment shall be based on the special needs of the 476.10 child and the determination that other resources to meet those 476.11 special needs are not available. The amount of any grant 476.12 payments shall be based on the severity of the child's 476.13 disability and the effect of the disability on the family and 476.14 must not exceed $10,000 annually. Adoptive parents are eligible 476.15 for grant payments until their child's 18th birthday, or if the 476.16 child is under 22 years of age and remains dependent on the 476.17 adoptive parent or parents for care and financial support and is 476.18 enrolled in a secondary education program as a full-time student. 476.19 Permissible expenses that may be paid from grants shall be 476.20 limited to: 476.21 (1) medical expenses not covered by the family's health 476.22 insurance or medical assistance; 476.23 (2) therapeutic expenses, including individual and family 476.24 therapy; and 476.25 (3) nonmedical services, items, or equipment required to 476.26 meet the special needs of the child. 476.27 The grants under this section shall not be used for 476.28 maintenance for out-of-home placement of the child in substitute 476.29 care. 476.30 Sec. 28. Minnesota Statutes 1998, section 259.89, is 476.31 amended by adding a subdivision to read: 476.32 Subd. 6. [DETERMINATION OF ELIGIBILITY FOR ENROLLMENT OR 476.33 MEMBERSHIP IN A FEDERALLY RECOGNIZED AMERICAN INDIAN TRIBE.] The 476.34 state registrar shall provide a copy of an adopted person's 476.35 original birth certificate to an authorized representative of a 476.36 federally recognized American Indian tribe for the sole purpose 477.1 of determining the adopted person's eligibility for enrollment 477.2 or membership in the tribe. 477.3 Sec. 29. Minnesota Statutes 1998, section 260.012, is 477.4 amended to read: 477.5 260.012 [DUTY TO ENSURE PLACEMENT PREVENTION AND FAMILY 477.6 REUNIFICATION; REASONABLE EFFORTS.] 477.7 (a)IfOnce a child alleged to be in need of protection or 477.8 services is under the court's jurisdiction, the court shall 477.9 ensure that reasonable efforts including culturally appropriate 477.10 services by the socialserviceservices agency are made to 477.11 prevent placement or to eliminate the need for removal and to 477.12 reunite the child with the child's family at the earliest 477.13 possible time, consistent with the best interests, safety, and 477.14 protection of the child.The court may, upon motion and477.15hearing, order the cessation of reasonable efforts if the court477.16finds that provision of services or further services for the477.17purpose of rehabilitation and reunification is futile and477.18therefore unreasonable under the circumstances.In determining 477.19 reasonable efforts to be made with respect to a child and in 477.20 making those reasonable efforts, the child's health and safety 477.21 must be of paramount concern. Reasonable efforts for 477.22 rehabilitation and reunification are not requiredifupon a 477.23 determination by the courtdeterminesthat: 477.24 (1) a termination of parental rights petition has been 477.25 filed stating a prima facie case that: 477.26 (i) the parent has subjectedthea child to egregious harm 477.27 as defined in section 260.015, subdivision 29, or; 477.28 (ii) the parental rights of the parent toa siblinganother 477.29 child have been terminated involuntarily; or 477.30 (iii) the child is an abandoned infant under section 477.31 260.221, subdivision 1a, paragraph (a), clause (2); 477.32 (2) the county attorney has filed a determination not to 477.33 proceed with a termination of parental rights petition on these 477.34 grounds was made under section 260.221, subdivision 1b, 477.35 paragraph (b), and a permanency hearing is held within 30 days 477.36 of the determination.; or 478.1 (3) a termination of parental rights petition or other 478.2 petition according to section 260.191, subdivision 3b, has been 478.3 filed alleging a prima facie case that the provision of services 478.4 or further services for the purpose of reunification is futile 478.5 and therefore unreasonable under the circumstances. 478.6 In the case of an Indian child, in proceedings under 478.7 sections 260.172, 260.191, and 260.221 the juvenile court must 478.8 make findings and conclusions consistent with the Indian Child 478.9 Welfare Act of 1978, United States Code, title 25, section 1901 478.10 et seq., as to the provision of active efforts. If a child is 478.11 under the court's delinquency jurisdiction, it shall be the duty 478.12 of the court to ensure that reasonable efforts are made to 478.13 reunite the child with the child's family at the earliest 478.14 possible time, consistent with the best interests of the child 478.15 and the safety of the public. 478.16 (b) "Reasonable efforts" means the exercise of due 478.17 diligence by the responsible socialserviceservices agency to 478.18 use appropriate and available services to meet the needs of the 478.19 child and the child's family in order to prevent removal of the 478.20 child from the child's family; or upon removal, services to 478.21 eliminate the need for removal and reunite the family. 478.22 (1) Services may include those listed under section 478.23 256F.07, subdivision 3, and other appropriate services available 478.24 in the community. 478.25 (2) At each stage of the proceedings where the court is 478.26 required to review the appropriateness of the responsible social 478.27 services agency's reasonable efforts, the socialservice478.28 services agency has the burden of demonstrating that it has made 478.29 reasonable efforts, or that provision of services or further 478.30 services for the purpose of rehabilitation and reunification is 478.31 futile and therefore unreasonable under the circumstances.or 478.32 that reasonable efforts aimed at reunification are not required 478.33 under this section. The agency may meet this burden by stating 478.34 facts in a sworn petition filed under section 260.131, or by 478.35 filing an affidavit summarizing the agency's reasonable efforts 478.36 or facts the agency believes demonstrate there is no need for 479.1 reasonable efforts to reunify the parent and child. 479.2 (3) No reasonable efforts for reunification are required 479.3 when the court makes a determination under paragraph (a) unless, 479.4 after a hearing according to section 260.155, the court finds 479.5 there is not clear and convincing evidence of the facts upon 479.6 which the court based its prima facie determination. In this 479.7 case, the court may proceed under section 260.235. 479.8 Reunification of a surviving child with a parent is not required 479.9 if the parent has been convicted of: 479.10(1)(i) a violation of, or an attempt or conspiracy to 479.11 commit a violation of, sections 609.185 to 609.20; 609.222, 479.12 subdivision 2; or 609.223 in regard to another child of the 479.13 parent; 479.14(2)(ii) a violation of section 609.222, subdivision 2; or 479.15 609.223, in regard to the surviving child; or 479.16(3)(iii) a violation of, or an attempt or conspiracy to 479.17 commit a violation of, United States Code, title 18, section 479.18 1111(a) or 1112(a), in regard to another child of the parent. 479.19 (c) The juvenile court, in proceedings under sections 479.20 260.172, 260.191, and 260.221 shall make findings and 479.21 conclusions as to the provision of reasonable efforts. When 479.22 determining whether reasonable efforts have been made, the court 479.23 shall consider whether services to the child and family were: 479.24 (1) relevant to the safety and protection of the child; 479.25 (2) adequate to meet the needs of the child and family; 479.26 (3) culturally appropriate; 479.27 (4) available and accessible; 479.28 (5) consistent and timely; and 479.29 (6) realistic under the circumstances. 479.30 In the alternative, the court may determine that provision 479.31 of services or further services for the purpose of 479.32 rehabilitation is futile and therefore unreasonable under the 479.33 circumstances or that reasonable efforts are not required as 479.34 provided in paragraph (a). 479.35 (d) This section does not prevent out-of-home placement for 479.36 treatment of a child with a mental disability when the child's 480.1 diagnostic assessment or individual treatment plan indicates 480.2 that appropriate and necessary treatment cannot be effectively 480.3 provided outside of a residential or inpatient treatment program. 480.4 (e) If continuation of reasonable efforts described in 480.5 paragraph (b) is determined by the court to be inconsistent with 480.6 thepermanencypermanent plan for the child, or upon a 480.7 determination under paragraph (a), reasonable efforts must be 480.8 made to place the child in a timely manner in accordance with 480.9 thepermanencypermanent plan ordered by the court and to 480.10 complete whatever steps are necessary to finalize thepermanency480.11 permanent plan for the child. 480.12 (f) Reasonable efforts to place a child for adoption or in 480.13 another permanent placement may be made concurrently with 480.14 reasonable efforts as described in paragraphs (a) and (b). When 480.15 the responsible social services agency decides to concurrently 480.16 make reasonable efforts for both reunification and permanent 480.17 placement away from the parent under paragraphs (a) and (b), the 480.18 agency shall disclose its decision and both plans for concurrent 480.19 reasonable efforts to all parties and the court. When the 480.20 agency discloses its decision to proceed on both plans for 480.21 reunification and permanent placement away from the parent, the 480.22 court's review of the agency's reasonable efforts shall include 480.23 the agency's efforts under paragraphs (a) and (b). 480.24 Sec. 30. Minnesota Statutes 1998, section 260.015, 480.25 subdivision 13, is amended to read: 480.26 Subd. 13. [RELATIVE.] "Relative" means a parent, 480.27 stepparent, grandparent, brother, sister, uncle, or aunt of the 480.28 minor. This relationship may be by blood or marriage. For an 480.29 Indian child, relative includes members of the extended family 480.30 as defined by the law or custom of the Indian child's tribe or, 480.31 in the absence of laws or custom, nieces, nephews, or first or 480.32 second cousins, as provided in the Indian Child Welfare Act of 480.33 1978, United States Code, title 25, section 1903. For purposes 480.34 ofdispositions, relative has the meaning given in section480.35260.181, subdivision 3.a child in need of protection or 480.36 services proceedings, termination of parental rights 481.1 proceedings, and permanency proceedings under section 260.191, 481.2 subdivision 3b, relative means a person related to the child by 481.3 blood, marriage, or adoption, or an individual who is an 481.4 important friend with whom the child has resided or had 481.5 significant contact. 481.6 Sec. 31. Minnesota Statutes 1998, section 260.015, 481.7 subdivision 29, is amended to read: 481.8 Subd. 29. [EGREGIOUS HARM.] "Egregious harm" means the 481.9 infliction of bodily harm to a child or neglect of a child which 481.10 demonstrates a grossly inadequate ability to provide minimally 481.11 adequate parental care. The egregious harm need not have 481.12 occurred in the state or in the county where a termination of 481.13 parental rights action is otherwise properly venued. Egregious 481.14 harm includes, but is not limited to: 481.15 (1) conduct towards a child that constitutes a violation of 481.16 sections 609.185 to 609.21, 609.222, subdivision 2, 609.223, or 481.17 any other similar law of any other state; 481.18 (2) the infliction of "substantial bodily harm" to a child, 481.19 as defined in section 609.02, subdivision 7a; 481.20 (3) conduct towards a child that constitutes felony 481.21 malicious punishment of a child under section 609.377; 481.22 (4) conduct towards a child that constitutes felony 481.23 unreasonable restraint of a child under section 609.255, 481.24 subdivision 3; 481.25 (5) conduct towards a child that constitutes felony neglect 481.26 or endangerment of a child under section 609.378; 481.27 (6) conduct towards a child that constitutes assault under 481.28 section 609.221, 609.222, or 609.223; 481.29 (7) conduct towards a child that constitutes solicitation, 481.30 inducement, or promotion of, or receiving profit derived from 481.31 prostitution under section 609.322; 481.32 (8) conduct toward a child that constitutes murder or 481.33 voluntary manslaughter as defined by United States Code, title 481.34 18, section 1111(a) or 1112(a);or481.35 (9) conduct toward a child that constitutes aiding or 481.36 abetting, attempting, conspiring, or soliciting to commit a 482.1 murder or voluntary manslaughter that constitutes a violation of 482.2 United States Code, title 18, section 1111(a) or 1112(a); or 482.3 (10) conduct toward a child that constitutes criminal 482.4 sexual conduct under sections 609.342 to 609.345. 482.5 Sec. 32. Minnesota Statutes 1998, section 260.131, 482.6 subdivision 1a, is amended to read: 482.7 Subd. 1a. [REVIEW OF FOSTER CARE STATUS.] The social 482.8serviceservices agency responsible for the placement of a child 482.9 in a residential facility, as defined in section 257.071, 482.10 subdivision 1, pursuant to a voluntary release by the child's 482.11 parent or parents may bring a petition in juvenile court to 482.12 review the foster care status of the child in the manner 482.13 provided in this section. The responsible social services 482.14 agency shall file either a petition alleging the child to be in 482.15 need of protection or services or a petition to terminate 482.16 parental rights or other permanency petition under section 482.17 260.191, subdivision 3b. 482.18 (a) In the case of a child in voluntary placement according 482.19 to section 257.071, subdivision 3, the petition shall be filed 482.20 within 90 days of the date of the voluntary placement agreement 482.21 and shall state the reasons why the child is in placement, the 482.22 progress on the case plan required under section 257.071, 482.23 subdivision 1, and the statutory basis for the petition under 482.24 section 260.015, subdivision 2a, 260.191, subdivision 3b, or 482.25 260.221. 482.26 (1) In the case of a petition filed under this paragraph, 482.27 if all parties agree and the court finds it is in the best 482.28 interests of the child, the court may find the petition states a 482.29 prima facie case that: 482.30 (i) the child's needs are being met; 482.31 (ii) the placement of the child in foster care is in the 482.32 best interests of the child; and 482.33 (iii) the child will be returned home in the next six 482.34 months. 482.35 (2) If the court makes findings under paragraph (a), clause 482.36 (1), the court shall approve the voluntary arrangement and 483.1 continue the matter for up to six more months to ensure the 483.2 child returns to the parents' home. The responsible social 483.3 services agency shall: 483.4 (i) report to the court when the child returns home and the 483.5 progress made by the parent on the case plan required under 483.6 section 257.071, in which case the court shall dismiss 483.7 jurisdiction; 483.8 (ii) report to the court that the child has not returned 483.9 home, in which case the matter shall be returned to the court 483.10 for further proceedings under section 260.155; or 483.11 (iii) if any party does not agree to continue the matter 483.12 under paragraph (a), clause (1), and this paragraph, the matter 483.13 shall proceed under section 260.155. 483.14 (b) In the case of a child in voluntary placement according 483.15 to section 257.071, subdivision 4, the petition shall be filed 483.16 within six months of the date of the voluntary placement 483.17 agreement and shall state the date of the voluntary placement 483.18 agreement, the nature of the child's developmental delay or 483.19 emotional handicap, the plan for the ongoing care of the child, 483.20 the parents' participation in the plan, and the statutory basis 483.21 for the petition. 483.22 (1) In the case of petitions filed under this paragraph, 483.23 the court may find, based on the contents of the sworn petition, 483.24 and the agreement of all parties, including the child, where 483.25 appropriate, that the voluntary arrangement is in the best 483.26 interests of the child, approve the voluntary arrangement, and 483.27 dismiss the matter from further jurisdiction. The court shall 483.28 give notice to the responsible social services agency that the 483.29 matter must be returned to the court for further review if the 483.30 child remains in placement after 12 months. 483.31 (2) If any party, including the child, disagrees with the 483.32 voluntary arrangement, the court shall proceed under section 483.33 260.155. 483.34 Sec. 33. Minnesota Statutes 1998, section 260.133, 483.35 subdivision 1, is amended to read: 483.36 Subdivision 1. [PETITION.] The local welfare agency may 484.1 bring an emergency petition on behalf of minor family or 484.2 household members seeking relief from acts of domestic child 484.3 abuse. The petition shall be brought according to section 484.4 260.131 and shall allege the existence of or immediate and 484.5 present danger of domestic child abuse, and shall be accompanied484.6by an affidavit made under oath stating the specific facts and484.7circumstances from which relief is sought. The court has 484.8 jurisdiction over the parties to a domestic child abuse matter 484.9 notwithstanding that there is a parent in the child's household 484.10 who is willing to enforce the court's order and accept services 484.11 on behalf of the family. 484.12 Sec. 34. Minnesota Statutes 1998, section 260.135, is 484.13 amended by adding a subdivision to read: 484.14 Subd. 1a. [NOTICE.] After a petition has been filed 484.15 alleging a child to be in need of protection or services and 484.16 unless the persons named in clauses (1) to (4) voluntarily 484.17 appear or are summoned according to subdivision 1, the court 484.18 shall issue a notice to: 484.19 (1) an adjudicated or presumed father of the child; 484.20 (2) an alleged father of the child; 484.21 (3) a noncustodial mother; and 484.22 (4) a grandparent with the right to participate under 484.23 section 260.155, subdivision 1a. 484.24 Sec. 35. Minnesota Statutes 1998, section 260.155, 484.25 subdivision 4, is amended to read: 484.26 Subd. 4. [GUARDIAN AD LITEM.] (a) The court shall appoint 484.27 a guardian ad litem to protect the interests of the minor when 484.28 it appears, at any stage of the proceedings, that the minor is 484.29 without a parent or guardian, or that the minor's parent is a 484.30 minor or incompetent, or that the parent or guardian is 484.31 indifferent or hostile to the minor's interests, and in every 484.32 proceeding alleging a child's need for protection or services 484.33 under section 260.015, subdivision 2a. In any other case the 484.34 court may appoint a guardian ad litem to protect the interests 484.35 of the minor when the court feels that such an appointment is 484.36 desirable. The court shall appoint the guardian ad litem on its 485.1 own motion or in the manner provided for the appointment of a 485.2 guardian ad litem in the district court. The court may appoint 485.3 separate counsel for the guardian ad litem if necessary. 485.4 (b) A guardian ad litem shall carry out the following 485.5 responsibilities: 485.6 (1) conduct an independent investigation to determine the 485.7 facts relevant to the situation of the child and the family, 485.8 which must include, unless specifically excluded by the court, 485.9 reviewing relevant documents; meeting with and observing the 485.10 child in the home setting and considering the child's wishes, as 485.11 appropriate; and interviewing parents, caregivers, and others 485.12 with knowledge relevant to the case; 485.13 (2) advocate for the child's best interests by 485.14 participating in appropriate aspects of the case and advocating 485.15 for appropriate community services when necessary; 485.16 (3) maintain the confidentiality of information related to 485.17 a case, with the exception of sharing information as permitted 485.18 by law to promote cooperative solutions that are in the best 485.19 interests of the child; 485.20 (4) monitor the child's best interests throughout the 485.21 judicial proceeding; and 485.22 (5) present written reports on the child's best interests 485.23 that include conclusions and recommendations and the facts upon 485.24 which they are based. 485.25 (c) Except in cases where the child is alleged to have been 485.26 abused or neglected, the court may waive the appointment of a 485.27 guardian ad litem pursuant to clause (a), whenever counsel has 485.28 been appointed pursuant to subdivision 2 or is retained 485.29 otherwise, and the court is satisfied that the interests of the 485.30 minor are protected. 485.31 (d) In appointing a guardian ad litem pursuant to clause 485.32 (a), the court shall not appoint the party, or any agent or 485.33 employee thereof, filing a petition pursuant to section 260.131. 485.34 (e) The following factors shall be considered when 485.35 appointing a guardian ad litem in a case involving an Indian or 485.36 minority child: 486.1 (1) whether a person is available who is the same racial or 486.2 ethnic heritage as the child or, if that is not possible; 486.3 (2) whether a person is available who knows and appreciates 486.4 the child's racial or ethnic heritage. 486.5 Sec. 36. Minnesota Statutes 1998, section 260.155, 486.6 subdivision 8, is amended to read: 486.7 Subd. 8. [WAIVER.] (a) Waiver of any right which a child 486.8 has under this chapter must be an express waiver voluntarily and 486.9 intelligently made by the child after the child has been fully 486.10 and effectively informed of the right being waived.If a child486.11is not represented by counsel, any waiver must be given or any486.12objection must be offered by the child's guardian ad litem.486.13 (b) Waiver of a child's right to be represented by counsel 486.14 provided under the juvenile court rules must be an express 486.15 waiver voluntarily and intelligently made by the child after the 486.16 child has been fully and effectively informed of the right being 486.17 waived. In determining whether a child has voluntarily and 486.18 intelligently waived the right to counsel, the court shall look 486.19 to the totality of the circumstances which includes but is not 486.20 limited to the child's age, maturity, intelligence, education, 486.21 experience, and ability to comprehend, and the presence and 486.22 competence of the child's parents, guardian, or guardian ad 486.23 litem. If the court accepts the child's waiver, it shall state 486.24 on the record the findings and conclusions that form the basis 486.25 for its decision to accept the waiver. 486.26 Sec. 37. Minnesota Statutes 1998, section 260.172, 486.27 subdivision 1, is amended to read: 486.28 Subdivision 1. [HEARING AND RELEASE REQUIREMENTS.] (a) If 486.29 a child was taken into custody under section 260.165, 486.30 subdivision 1, clause (a) or (c)(2), the court shall hold a 486.31 hearing within 72 hours of the time the child was taken into 486.32 custody, excluding Saturdays, Sundays, and holidays, to 486.33 determine whether the child should continue in custody. 486.34 (b) In all other cases, the court shall hold a detention 486.35 hearing: 486.36 (1) within 36 hours of the time the child was taken into 487.1 custody, excluding Saturdays, Sundays, and holidays, if the 487.2 child is being held at a juvenile secure detention facility or 487.3 shelter care facility; or 487.4 (2) within 24 hours of the time the child was taken into 487.5 custody, excluding Saturdays, Sundays, and holidays, if the 487.6 child is being held at an adult jail or municipal lockup. 487.7 (c) Unless there is reason to believe that the child would 487.8 endanger self or others, not return for a court hearing, run 487.9 away from the child's parent, guardian, or custodian or 487.10 otherwise not remain in the care or control of the person to 487.11 whose lawful custody the child is released, or that the child's 487.12 health or welfare would be immediately endangered, the child 487.13 shall be released to the custody of a parent, guardian, 487.14 custodian, or other suitable person, subject to reasonable 487.15 conditions of release including, but not limited to, a 487.16 requirement that the child undergo a chemical use assessment as 487.17 provided in section 260.151, subdivision 1. In determining 487.18 whether the child's health or welfare would be immediately 487.19 endangered, the court shall consider whether the child would 487.20 reside with a perpetrator of domestic child abuse. In a 487.21 proceeding regarding a child in need of protection or services, 487.22 the court, before determining whether a child should continue in 487.23 custody, shall also make a determination, consistent with 487.24 section 260.012 as to whether reasonable efforts, or in the case 487.25 of an Indian child, active efforts, according to the Indian 487.26 Child Welfare Act of 1978, United States Code, title 25, section 487.27 1912(d), were made to prevent placement or to reunite the child 487.28 with the child's family, or that reasonable efforts were not 487.29 possible. The court shall also determine whether there are 487.30 available services that would prevent the need for further 487.31 detention. 487.32 If the court finds the social services agency's preventive 487.33 or reunification efforts have not been reasonable but further 487.34 preventive or reunification efforts could not permit the child 487.35 to safely remain at home, the court may nevertheless authorize 487.36 or continue the removal of the child. 488.1The court may determine(d) At the detention hearing, or at 488.2 any time prior to an adjudicatory hearing, that reasonable488.3efforts are not required because the facts, if proved, will488.4demonstrate that the parent has subjected the child to egregious488.5harm as defined in section 260.015, subdivision 29, or the488.6parental rights of the parent to a sibling of the child have488.7been terminated involuntarily.and upon notice and request of 488.8 the county attorney, the court shall make the following 488.9 determinations: 488.10 (1) whether a termination of parental rights petition has 488.11 been filed stating a prima facie case that: 488.12 (i) the parent has subjected a child to egregious harm as 488.13 defined in section 260.015, subdivision 29; 488.14 (ii) the parental rights of the parent to another child 488.15 have been involuntarily terminated; or 488.16 (iii) the child is an abandoned infant under section 488.17 260.221, subdivision 1a, paragraph (a), clause (2); 488.18 (2) that the county attorney has determined not to proceed 488.19 with a termination of parental rights petition under section 488.20 260.221, subdivision 1b; or 488.21 (3) whether a termination of parental rights petition or 488.22 other petition according to section 260.191, subdivision 3b, has 488.23 been filed alleging a prima facie case that the provision of 488.24 services or further services for the purpose of rehabilitation 488.25 and reunification is futile and therefore unreasonable under the 488.26 circumstances. 488.27 If the court determines that the county attorney is not 488.28 proceeding with a termination of parental rights petition under 488.29 section 260.221, subdivision 1b, but is proceeding with a 488.30 petition under section 260.191, subdivision 3b, the court shall 488.31 schedule a permanency hearing within 30 days. If the county 488.32 attorney has filed a petition under section 260.221, subdivision 488.33 1b, the court shall schedule a trial under section 260.155 488.34 within 90 days of the filing of the petition except when the 488.35 county attorney determines that the criminal case shall proceed 488.36 to trial first under section 260.191, subdivision 1b. 489.1 (e) If the court determines the child should be ordered 489.2 into out-of-home placement and the child's parent refuses to 489.3 give information to the responsible social services agency 489.4 regarding the child's father or relatives of the child, the 489.5 court may order the parent to disclose the names, addresses, 489.6 telephone numbers, and other identifying information to the 489.7 local social services agency for the purpose of complying with 489.8 the requirements of sections 257.071, 257.072, and 260.135. 489.9 Sec. 38. Minnesota Statutes 1998, section 260.172, is 489.10 amended by adding a subdivision to read: 489.11 Subd. 5. [CASE PLAN.] (a) A case plan required under 489.12 section 257.071 shall be filed with the court within 30 days of 489.13 the filing of a petition alleging the child to be in need of 489.14 protection or services under section 260.131. 489.15 (b) Upon the filing of the case plan, the court may approve 489.16 the case plan based on the allegations contained in the 489.17 petition. A parent may agree to comply with the terms of the 489.18 case plan filed with the court. 489.19 (c) Upon notice and motion by a parent who agrees to comply 489.20 with the terms of a case plan, the court may modify the case and 489.21 order the responsible social services agency to provide other or 489.22 additional services for reunification, if reunification efforts 489.23 are required, and the court determines the agency's case plan 489.24 inadequate under section 260.012. 489.25 (d) Unless the parent agrees to comply with the terms of 489.26 the case plan, the court may not order a parent to comply with 489.27 the provisions of the case plan until the court makes a 489.28 determination under section 260.191, subdivision 1. 489.29 Sec. 39. Minnesota Statutes 1998, section 260.181, 489.30 subdivision 3, is amended to read: 489.31 Subd. 3. [PROTECTION OF CHILD'S BEST INTERESTS.] (a) The 489.32 policy of the state is to ensure that the best interests of 489.33 children are met by requiring individualized determinations of 489.34 the needs of the child and of how the selected placement will 489.35 serve the needs of the child in foster care placements. 489.36 (b) Among the factors to be considered in determining the 490.1 needs of the child are: 490.2 (1) the child's current functioning and behaviors; 490.3 (2) the medical, educational, and developmental needs of 490.4 the child; 490.5 (3) the child's history and past experience; 490.6 (4) the child's religious and cultural needs; 490.7 (5) the child's connection with a community, school, and 490.8 church; 490.9 (6) the child's interests and talents; 490.10 (7) the child's relationship to current caretakers, 490.11 parents, siblings, and relatives; and 490.12 (8) the reasonable preference of the child, if the court, 490.13 or in the case of a voluntary placement the child-placing 490.14 agency, deems the child to be of sufficient age to express 490.15 preferences. 490.16 (c) The court, in transferring legal custody of any child 490.17 or appointing a guardian for the child under the laws relating 490.18 to juvenile courts, shall consider placement, consistent with 490.19 the child's best interests and in the following order, in the 490.20 legal custody or guardianship of an individual who (1) is 490.21 related to the child by blood, marriage, or adoption,or(2) is 490.22 an important friend with whom the child has resided or had 490.23 significant contact, or (3) a married couple. Placement of a 490.24 child cannot be delayed or denied based on race, color, or 490.25 national origin of the foster parent or the child. Whenever 490.26 possible, siblings should be placed together unless it is 490.27 determined not to be in the best interests of a sibling. 490.28 (d) If the child's birth parent or parents explicitly 490.29 request that a relative or important friend not be considered, 490.30 the court shall honor that request if it is consistent with the 490.31 best interests of the child. 490.32 If the child's birth parent or parents express a preference 490.33 for placing the child in a foster or adoptive home of the same 490.34 or a similar religious background to that of the birth parent or 490.35 parents, the court shall order placement of the child with an 490.36 individual who meets the birth parent's religious preference. 491.1 (e) This subdivision does not affect the Indian Child 491.2 Welfare Act, United States Code, title 25, sections 1901 to 491.3 1923, and the Minnesota Indian Family Preservation Act, sections 491.4 257.35 to 257.3579. 491.5 Sec. 40. Minnesota Statutes 1998, section 260.191, 491.6 subdivision 1, is amended to read: 491.7 Subdivision 1. [DISPOSITIONS.] (a) If the court finds that 491.8 the child is in need of protection or services or neglected and 491.9 in foster care, it shall enter an order making any of the 491.10 following dispositions of the case: 491.11 (1) place the child under the protective supervision of the 491.12 local social services agency or child-placing agency in the 491.13child's ownhome of a parent of the child under conditions 491.14 prescribed by the court directed to the correction of the 491.15 child's need for protection or services;, or: 491.16 (i) the court may order the child into the home of a parent 491.17 who does not otherwise have legal custody of the child, however, 491.18 an order under this section does not confer legal custody on 491.19 that parent; 491.20 (ii) if the court orders the child into the home of a 491.21 father who is not adjudicated, he must cooperate with paternity 491.22 establishment proceedings regarding the child in the appropriate 491.23 jurisdiction as one of the conditions prescribed by the court 491.24 for the child to continue in his home; 491.25 (iii) the court may order the child into the home of a 491.26 noncustodial parent with conditions and may also order both the 491.27 noncustodial and the custodial parent to comply with the 491.28 requirements of a case plan under subdivision 1a; 491.29 (2) transfer legal custody to one of the following: 491.30 (i) a child-placing agency; or 491.31 (ii) the local social services agency. 491.32 In placing a child whose custody has been transferred under 491.33 this paragraph, the agencies shall follow theorder of491.34preference stated inrequirements of section 260.181, 491.35 subdivision 3; 491.36 (3) if the child is in need of special treatment and care 492.1 for reasons of physical or mental health, the court may order 492.2 the child's parent, guardian, or custodian to provide it. If 492.3 the parent, guardian, or custodian fails or is unable to provide 492.4 this treatment or care, the court may order it provided. The 492.5 court shall not transfer legal custody of the child for the 492.6 purpose of obtaining special treatment or care solely because 492.7 the parent is unable to provide the treatment or care. If the 492.8 court's order for mental health treatment is based on a 492.9 diagnosis made by a treatment professional, the court may order 492.10 that the diagnosing professional not provide the treatment to 492.11 the child if it finds that such an order is in the child's best 492.12 interests; or 492.13 (4) if the court believes that the child has sufficient 492.14 maturity and judgment and that it is in the best interests of 492.15 the child, the court may order a child 16 years old or older to 492.16 be allowed to live independently, either alone or with others as 492.17 approved by the court under supervision the court considers 492.18 appropriate, if the county board, after consultation with the 492.19 court, has specifically authorized this dispositional 492.20 alternative for a child. 492.21 (b) If the child was adjudicated in need of protection or 492.22 services because the child is a runaway or habitual truant, the 492.23 court may order any of the following dispositions in addition to 492.24 or as alternatives to the dispositions authorized under 492.25 paragraph (a): 492.26 (1) counsel the child or the child's parents, guardian, or 492.27 custodian; 492.28 (2) place the child under the supervision of a probation 492.29 officer or other suitable person in the child's own home under 492.30 conditions prescribed by the court, including reasonable rules 492.31 for the child's conduct and the conduct of the parents, 492.32 guardian, or custodian, designed for the physical, mental, and 492.33 moral well-being and behavior of the child; or with the consent 492.34 of the commissioner of corrections, place the child in a group 492.35 foster care facility which is under the commissioner's 492.36 management and supervision; 493.1 (3) subject to the court's supervision, transfer legal 493.2 custody of the child to one of the following: 493.3 (i) a reputable person of good moral character. No person 493.4 may receive custody of two or more unrelated children unless 493.5 licensed to operate a residential program under sections 245A.01 493.6 to 245A.16; or 493.7 (ii) a county probation officer for placement in a group 493.8 foster home established under the direction of the juvenile 493.9 court and licensed pursuant to section 241.021; 493.10 (4) require the child to pay a fine of up to $100. The 493.11 court shall order payment of the fine in a manner that will not 493.12 impose undue financial hardship upon the child; 493.13 (5) require the child to participate in a community service 493.14 project; 493.15 (6) order the child to undergo a chemical dependency 493.16 evaluation and, if warranted by the evaluation, order 493.17 participation by the child in a drug awareness program or an 493.18 inpatient or outpatient chemical dependency treatment program; 493.19 (7) if the court believes that it is in the best interests 493.20 of the child and of public safety that the child's driver's 493.21 license or instruction permit be canceled, the court may order 493.22 the commissioner of public safety to cancel the child's license 493.23 or permit for any period up to the child's 18th birthday. If 493.24 the child does not have a driver's license or permit, the court 493.25 may order a denial of driving privileges for any period up to 493.26 the child's 18th birthday. The court shall forward an order 493.27 issued under this clause to the commissioner, who shall cancel 493.28 the license or permit or deny driving privileges without a 493.29 hearing for the period specified by the court. At any time 493.30 before the expiration of the period of cancellation or denial, 493.31 the court may, for good cause, order the commissioner of public 493.32 safety to allow the child to apply for a license or permit, and 493.33 the commissioner shall so authorize; 493.34 (8) order that the child's parent or legal guardian deliver 493.35 the child to school at the beginning of each school day for a 493.36 period of time specified by the court; or 494.1 (9) require the child to perform any other activities or 494.2 participate in any other treatment programs deemed appropriate 494.3 by the court. 494.4 To the extent practicable, the court shall enter a 494.5 disposition order the same day it makes a finding that a child 494.6 is in need of protection or services or neglected and in foster 494.7 care, but in no event more than 15 days after the finding unless 494.8 the court finds that the best interests of the child will be 494.9 served by granting a delay. If the child was under eight years 494.10 of age at the time the petition was filed, the disposition order 494.11 must be entered within ten days of the finding and the court may 494.12 not grant a delay unless good cause is shown and the court finds 494.13 the best interests of the child will be served by the delay. 494.14 (c) If a child who is 14 years of age or older is 494.15 adjudicated in need of protection or services because the child 494.16 is a habitual truant and truancy procedures involving the child 494.17 were previously dealt with by a school attendance review board 494.18 or county attorney mediation program under section 260A.06 or 494.19 260A.07, the court shall order a cancellation or denial of 494.20 driving privileges under paragraph (b), clause (7), for any 494.21 period up to the child's 18th birthday. 494.22 (d) In the case of a child adjudicated in need of 494.23 protection or services because the child has committed domestic 494.24 abuse and been ordered excluded from the child's parent's home, 494.25 the court shall dismiss jurisdiction if the court, at any time, 494.26 finds the parent is able or willing to provide an alternative 494.27 safe living arrangement for the child, as defined in Laws 1997, 494.28 chapter 239, article 10, section 2. 494.29 Sec. 41. Minnesota Statutes 1998, section 260.191, 494.30 subdivision 3b, is amended to read: 494.31 Subd. 3b. [REVIEW OF COURT ORDERED PLACEMENTS; PERMANENT 494.32 PLACEMENT DETERMINATION.] (a) Except for cases where the child 494.33 is in placement due solely to the child's status as 494.34 developmentally delayed under United States Code, title 42, 494.35 section 6001(7), or emotionally handicapped under section 494.36 252.27, and where custody has not been transferred to the 495.1 responsible social services agency, the court shall conduct a 495.2 hearing to determine the permanent status of a child not later 495.3 than 12 months after the child is placed out of the home of the 495.4 parent, except that if the child was under eight years of age at 495.5 the time the petition was filed, the hearing must be conducted 495.6 no later than six months after the child is placed out of the 495.7 home of the parent. 495.8 For purposes of this subdivision, the date of the child's 495.9 placement out of the home of the parent is the earlier of the 495.10 first court-ordered placement or 60 days after the date on which 495.11 the child has been voluntarily placed out of the home. 495.12 For purposes of this subdivision, 12 months is calculated 495.13 as follows: 495.14 (1) during the pendency of a petition alleging that a child 495.15 is in need of protection or services, all time periods when a 495.16 child is placed out of the home of the parent are cumulated; 495.17 (2) if a child has been placed out of the home of the 495.18 parent within the previous five yearsin connection with one or495.19more prior petitions for a child in need of protection or495.20services, the lengths of all prior time periods when the child 495.21 was placed out of the home within the previous five yearsand495.22under the current petition,are cumulated. If a child under 495.23 this clause has been out of the home for 12 months or more, the 495.24 court, if it is in the best interests of the child and for 495.25 compelling reasons, may extend the total time the child may 495.26 continue out of the home under the current petition up to an 495.27 additional six months before making a permanency determination. 495.28 (b) Unless the responsible social services agency 495.29 recommends return of the child to the custodial parent or 495.30 parents, not later thanten30 days prior to this hearing, the 495.31 responsible socialserviceservices agency shall file pleadings 495.32 in juvenile court to establish the basis for the juvenile court 495.33 to order permanent placementdeterminationof the child 495.34 according to paragraph (d). Notice of the hearing and copies of 495.35 the pleadings must be provided pursuant to section 260.141. If 495.36 a termination of parental rights petition is filed before the 496.1 date required for the permanency planning determination, and 496.2 there is a trial under section 260.155 scheduled on that 496.3 petition within 90 days of the filing of the petition, no 496.4 hearing need be conducted under this subdivision. 496.5 (c) At the conclusion of the hearing, the court shall 496.6determine whetherorder the childis to bereturned home or, if496.7not, whatorder a permanent placementis consistent within the 496.8 child's best interests. The "best interests of the child" means 496.9 all relevant factors to be considered and evaluated. 496.10(c)(d) At a hearing under this subdivision, if the child 496.11 was under eight years of age at the time the petition was filed 496.12 alleging the child in need of protection or services, the court 496.13 shall review the progress of the case and the case plan, 496.14 including the provision of services. The court may order the 496.15 local socialserviceservices agency to show cause why it should 496.16 not file a termination of parental rights petition. Cause may 496.17 include, but is not limited to, the following conditions: 496.18 (1) the parents or guardians have maintained regular 496.19 contact with the child, the parents are complying with the 496.20 court-ordered case plan, and the child would benefit from 496.21 continuing this relationship; 496.22 (2) grounds for termination under section 260.221 do not 496.23 exist; or 496.24 (3) the permanent plan for the child is transfer of 496.25 permanent legal and physical custody to a relative. When the 496.26 permanent plan for the child is transfer of permanent legal and 496.27 physical custody to a relative, a petition supporting the plan 496.28 shall be filed in juvenile court within 30 days of the hearing 496.29 required under this subdivision and a hearing on the petition 496.30 held within 30 days of the filing of the pleadings. 496.31(d)(e) If the child is not returned to the home, the court 496.32 must order one of the following dispositionsavailable for496.33permanent placement determination are: 496.34 (1) permanent legal and physical custody to a relative in 496.35 the best interests of the child. In transferring permanent 496.36 legal and physical custody to a relative, the juvenile court 497.1 shall follow the standards and procedures applicable under 497.2 chapter 257 or 518. An order establishing permanent legal or 497.3 physical custody under this subdivision must be filed with the 497.4 family court. A transfer of legal and physical custody includes 497.5 responsibility for the protection, education, care, and control 497.6 of the child and decision making on behalf of the child. The 497.7 socialserviceservices agency may petition on behalf of the 497.8 proposed custodian; 497.9 (2) termination of parental rightsand adoption; unless the 497.10 socialserviceservices agencyshall filehas already filed a 497.11 petition for termination of parental rights under section 497.12 260.231, the court may order such a petition filed and all the 497.13 requirements of sections 260.221 to 260.245 remain applicable. 497.14 An adoption completed subsequent to a determination under this 497.15 subdivision may include an agreement for communication or 497.16 contact under section 259.58; or 497.17 (3) long-term foster care; transfer of legal custody and 497.18 adoption are preferred permanency options for a child who cannot 497.19 return home. The court may order a child into long-term foster 497.20 care only if it finds that neither an award of legal and 497.21 physical custody to a relative, nor termination of parental 497.22 rights nor adoption is in the child's best interests. Further, 497.23 the court may only order long-term foster care for the child 497.24 under this section if it finds the following: 497.25 (i) the child has reached age 12 and reasonable efforts by 497.26 the responsible socialserviceservices agency have failed to 497.27 locate an adoptive family for the child; or 497.28 (ii) the child is a sibling of a child described in clause 497.29 (i) and the siblings have a significant positive relationship 497.30 and are ordered into the same long-term foster care home; or 497.31 (4) foster care for a specified period of time may be 497.32 ordered only if: 497.33 (i) the sole basis for an adjudication thatathe child is 497.34 in need of protection or services isthat the child is a497.35runaway, is an habitual truant, or committed a delinquent act497.36before age tenthe child's behavior; and 498.1 (ii) the court finds that foster care for a specified 498.2 period of time is in the best interests of the child. 498.3 (e) In ordering a permanent placement of a child, the court 498.4 must be governed by the best interests of the child, including a 498.5 review of the relationship between the child and relatives and 498.6 the child and other important persons with whom the child has 498.7 resided or had significant contact. 498.8 (f) Once a permanent placement determination has been made 498.9 and permanent placement has been established, further court 498.10 reviews and dispositional hearings are only necessary if the 498.11 placement is made under paragraph (d), clause (4), review is 498.12 otherwise required by federal law, an adoption has not yet been 498.13 finalized, or there is a disruption of the permanent or 498.14 long-term placement. 498.15 (g) An order under this subdivision must include the 498.16 following detailed findings: 498.17 (1) how the child's best interests are served by the order; 498.18 (2) the nature and extent of the responsible socialservice498.19 services agency's reasonable efforts, or, in the case of an 498.20 Indian child, active efforts, to reunify the child with the 498.21 parent or parents; 498.22 (3) the parent's or parents' efforts and ability to use 498.23 services to correct the conditions which led to the out-of-home 498.24 placement; and 498.25 (4) whether the conditions which led to the out-of-home 498.26 placement have been corrected so that the child can return home;498.27and498.28(5) if the child cannot be returned home, whether there is498.29a substantial probability of the child being able to return home498.30in the next six months. 498.31 (h) An order for permanent legal and physical custody of a 498.32 child may be modified under sections 518.18 and 518.185. The 498.33 socialserviceservices agency is a party to the proceeding and 498.34 must receive notice. An order for long-term foster care is 498.35 reviewable upon motion and a showing by the parent of a 498.36 substantial change in the parent's circumstances such that the 499.1 parent could provide appropriate care for the child and that 499.2 removal of the child from the child's permanent placement and 499.3 the return to the parent's care would be in the best interest of 499.4 the child. 499.5 (i) The court shall issue an order required under this 499.6 section within 15 days of the close of the proceedings. The 499.7 court may extend issuing the order an additional 15 days when 499.8 necessary in the interests of justice and the best interests of 499.9 the child. 499.10 Sec. 42. Minnesota Statutes 1998, section 260.192, is 499.11 amended to read: 499.12 260.192 [DISPOSITIONS; VOLUNTARY FOSTER CARE PLACEMENTS.] 499.13 Unless the court disposes of the petition under section 499.14 260.131, subdivision 1a, upon a petition for review of the 499.15 foster care status of a child, the court may: 499.16 (a)In the case of a petition required to be filed under499.17section 257.071, subdivision 3, find that the child's needs are499.18being met, that the child's placement in foster care is in the499.19best interests of the child, and that the child will be returned499.20home in the next six months, in which case the court shall499.21approve the voluntary arrangement and continue the matter for499.22six months to assure the child returns to the parent's home.499.23(b) In the case of a petition required to be filed under499.24section 257.071, subdivision 4, find that the child's needs are499.25being met and that the child's placement in foster care is in499.26the best interests of the child, in which case the court shall499.27approve the voluntary arrangement. The court shall order the499.28social service agency responsible for the placement to bring a499.29petition under section 260.131, subdivision 1 or 1a, as499.30appropriate, within 12 months.499.31(c)Find that the child's needs are not being met, in which 499.32 case the court shall order the socialserviceservices agency or 499.33 the parents to take whatever action is necessary and feasible to 499.34 meet the child's needs, including, when appropriate, the 499.35 provision by the socialserviceservices agency of services to 499.36 the parents which would enable the child to live at home, and 500.1 order a disposition under section 260.191. 500.2(d)(b) Find that the child has been abandoned by parents 500.3 financially or emotionally, or that the developmentally disabled 500.4 child does not require out-of-home care because of the 500.5 handicapping condition, in which case the court shall order the 500.6 socialserviceservices agency to file an appropriate petition 500.7 pursuant to sections 260.131, subdivision 1, or 260.231. 500.8 Nothing in this section shall be construed to prohibit 500.9 bringing a petition pursuant to section 260.131, subdivision 1 500.10 or 2, sooner than required by court order pursuant to this 500.11 section. 500.12 Sec. 43. Minnesota Statutes 1998, section 260.221, 500.13 subdivision 1, is amended to read: 500.14 Subdivision 1. [VOLUNTARY AND INVOLUNTARY.] The juvenile 500.15 court may upon petition, terminate all rights of a parent to a 500.16 child: 500.17 (a) with the written consent of a parent who for good cause 500.18 desires to terminate parental rights; or 500.19 (b) if it finds that one or more of the following 500.20 conditions exist: 500.21 (1) that the parent has abandoned the child; 500.22 (2) that the parent has substantially, continuously, or 500.23 repeatedly refused or neglected to comply with the duties 500.24 imposed upon that parent by the parent and child relationship, 500.25 including but not limited to providing the child with necessary 500.26 food, clothing, shelter, education, and other care and control 500.27 necessary for the child's physical, mental, or emotional health 500.28 and development, if the parent is physically and financially 500.29 able, and either reasonable efforts by the socialservice500.30 services agency have failed to correct the conditions that 500.31 formed the basis of the petition or reasonable efforts would be 500.32 futile and therefore unreasonable; 500.33 (3) that a parent has been ordered to contribute to the 500.34 support of the child or financially aid in the child's birth and 500.35 has continuously failed to do so without good cause. This 500.36 clause shall not be construed to state a grounds for termination 501.1 of parental rights of a noncustodial parent if that parent has 501.2 not been ordered to or cannot financially contribute to the 501.3 support of the child or aid in the child's birth; 501.4 (4) that a parent is palpably unfit to be a party to the 501.5 parent and child relationship because of a consistent pattern of 501.6 specific conduct before the child or of specific conditions 501.7 directly relating to the parent and child relationship either of 501.8 which are determined by the court to be of a duration or nature 501.9 that renders the parent unable, for the reasonably foreseeable 501.10 future, to care appropriately for the ongoing physical, mental, 501.11 or emotional needs of the child. It is presumed that a parent 501.12 is palpably unfit to be a party to the parent and child 501.13 relationship upon a showing that:501.14(i) the child was adjudicated in need of protection or501.15services due to circumstances described in section 260.015,501.16subdivision 2a, clause (1), (2), (3), (5), or (8); and501.17(ii)the parent's parental rights to one or more other 501.18 children were involuntarily terminatedunder clause (1), (2),501.19(4), or (7), or under clause (5) if the child was initially501.20determined to be in need of protection or services due to501.21circumstances described in section 260.015, subdivision 2a,501.22clause (1), (2), (3), (5), or (8); 501.23 (5) that followingupon a determination of neglect or501.24dependency, or of a child's need for protection or servicesthe 501.25 child's placement out of the home, reasonable efforts, under the 501.26 direction of the court, have failed to correct the conditions 501.27 leading to thedeterminationchild's placement. It is presumed 501.28 that reasonable efforts under this clause have failed upon a 501.29 showing that: 501.30 (i) a child has resided out of the parental home under 501.31 court order for a cumulative period ofmore than one year within501.32a five-year period following an adjudication of dependency,501.33neglect, need for protection or services under section 260.015,501.34subdivision 2a, clause (1), (2), (3), (6), (8), or (9), or501.35neglected and in foster care, and an order for disposition under501.36section 260.191, including adoption of the case plan required by502.1section 257.071;12 months within the preceding 22 months. In 502.2 the case of a child under age eight at the time the petition was 502.3 filed alleging the child to be in need of protection or 502.4 services, the presumption arises when the child has resided out 502.5 of the parental home under court order for six months unless the 502.6 parent has maintained regular contact with the child and the 502.7 parent is complying with the case plan; 502.8 (ii) the court has approved a case plan required under 502.9 section 257.071 and filed with the court under section 260.172; 502.10 (iii) conditions leading to thedetermination502.11willout-of-home placement have notbebeen correctedwithin502.12the reasonably foreseeable future. It is presumed that 502.13 conditions leading to a child's out-of-home placementwillhave 502.14 notbebeen correctedin the reasonably foreseeable futureupon 502.15 a showing that the parent or parents have not substantially 502.16 complied with the court's orders and a reasonable case plan, and502.17the conditions which led to the out-of-home placement have not502.18been corrected; and 502.19(iii)(iv) reasonable efforts have been made by the social 502.20serviceservices agency to rehabilitate the parent and reunite 502.21 the family. 502.22 This clause does not prohibit the termination of parental 502.23 rights prior to one year, or in the case of a child under age 502.24 eight, within six months after a child has been placed out of 502.25 the home. 502.26 It is also presumed that reasonable efforts have failed 502.27 under this clause upon a showing that: 502.28(i)(A) the parent has been diagnosed as chemically 502.29 dependent by a professional certified to make the diagnosis; 502.30(ii)(B) the parent has been required by a case plan to 502.31 participate in a chemical dependency treatment program; 502.32(iii)(C) the treatment programs offered to the parent were 502.33 culturally, linguistically, and clinically appropriate; 502.34(iv)(D) the parent has either failed two or more times to 502.35 successfully complete a treatment program or has refused at two 502.36 or more separate meetings with a caseworker to participate in a 503.1 treatment program; and 503.2(v)(E) the parent continues to abuse chemicals. 503.3Provided, that this presumption applies only to parents required503.4by a case plan to participate in a chemical dependency treatment503.5program on or after July 1, 1990;503.6 (6) that a child has experienced egregious harm in the 503.7 parent's care which is of a nature, duration, or chronicity that 503.8 indicates a lack of regard for the child's well-being, such that 503.9 a reasonable person would believe it contrary to the best 503.10 interest of the child or of any child to be in the parent's 503.11 care; 503.12 (7) that in the case of a child born to a mother who was 503.13 not married to the child's father when the child was conceived 503.14 nor when the child was born the person is not entitled to notice 503.15 of an adoption hearing under section 259.49 and the person has 503.16 not registered with the fathers' adoption registry under section 503.17 259.52; 503.18 (8) that the child is neglected and in foster care; or 503.19 (9) that the parent has been convicted of a crime listed in 503.20 section 260.012, paragraph (b), clauses (1) to (3). 503.21 In an action involving an American Indian child, sections 503.22 257.35 to 257.3579 and the Indian Child Welfare Act, United 503.23 States Code, title 25, sections 1901 to 1923, control to the 503.24 extent that the provisions of this section are inconsistent with 503.25 those laws. 503.26 Sec. 44. Minnesota Statutes 1998, section 260.221, 503.27 subdivision 1b, is amended to read: 503.28 Subd. 1b. [REQUIRED TERMINATION OF PARENTAL RIGHTS.] (a) 503.29 The county attorney shall file a termination of parental rights 503.30 petition within 30 days of the responsible social services 503.31 agency determining that achild's placement in out-of-home care503.32if thechild has been subjected to egregious harm as defined in 503.33 section 260.015, subdivision 29, is determined to be the sibling 503.34 of another child of the parent who was subjected to egregious 503.35 harm, or is an abandoned infant as defined in subdivision 1a, 503.36 paragraph (a), clause (2). The local social services agency 504.1 shall concurrently identify, recruit, process, and approve an 504.2 adoptive family for the child. If a termination of parental 504.3 rights petition has been filed by another party, the local 504.4 social services agency shall be joined as a party to the 504.5 petition. If criminal charges have been filed against a parent 504.6 arising out of the conduct alleged to constitute egregious harm, 504.7 the county attorney shall determine which matter should proceed 504.8 to trial first, consistent with the best interests of the child 504.9 and subject to the defendant's right to a speedy trial. 504.10 (b) This requirement does not apply if the county attorney 504.11 determines and files with the courtits determination that: 504.12 (1) a petition for transfer of permanent legal and physical 504.13 custody to a relativeis in the best interests of the child or504.14there isunder section 260.191, subdivision 3b, including a 504.15 determination that the transfer is in the best interests of the 504.16 child; or 504.17 (2) a petition alleging the child and, where appropriate, 504.18 the child's siblings to be in need of protection or services 504.19 accompanied by a case plan prepared by the responsible social 504.20 services agency documenting a compelling reasondocumented by504.21the local social services agency thatwhy filingthea 504.22 termination of parental rights petition would not be in the best 504.23 interests of the child. 504.24 Sec. 45. Minnesota Statutes 1998, section 260.221, 504.25 subdivision 1c, is amended to read: 504.26 Subd. 1c. [CURRENT FOSTER CARE CHILDREN.] Except for cases 504.27 where the child is in placement due solely to the child's status 504.28 as developmentally delayed under United States Code, title 42, 504.29 section 6001(7), or emotionally handicapped under section 504.30 252.27, and where custody has not been transferred to the 504.31 responsible social services agency, the county attorney shall 504.32 file a termination of parental rights petition orothera 504.33 petition to support another permanent placement proceeding under 504.34 section 260.191, subdivision 3b, for all childrendetermined to504.35be in need of protection or serviceswho are placed in 504.36 out-of-home care for reasons other than care or treatment of the 505.1 child's disability, and who are in out-of-home placement on 505.2 April 21, 1998, and have been in out-of-home care for 15 of the 505.3 most recent 22 months. This requirement does not apply if there 505.4 is a compelling reason documented in a case plan filed with the 505.5 court for determining that filing a termination of parental 505.6 rights petition or other permanency petition would not be in the 505.7 best interests of the child or if the responsible social 505.8 services agency has not provided reasonable efforts necessary 505.9 for the safe return of the child, if reasonable efforts are 505.10 required. 505.11 Sec. 46. Minnesota Statutes 1998, section 260.221, 505.12 subdivision 3, is amended to read: 505.13 Subd. 3. [WHEN PRIOR FINDING REQUIRED.] For purposes of 505.14 subdivision 1, clause (b), no prior judicial finding of 505.15dependency, neglect,need for protection or services, or 505.16 neglected and in foster care is required, except as provided in 505.17 subdivision 1, clause (b), item (5). 505.18 Sec. 47. Minnesota Statutes 1998, section 260.221, 505.19 subdivision 5, is amended to read: 505.20 Subd. 5. [FINDINGS REGARDING REASONABLE EFFORTS.] In any 505.21 proceeding under this section, the court shall make specific 505.22 findings: 505.23 (1) regarding the nature and extent of efforts made by the 505.24 socialserviceservices agency to rehabilitate the parent and 505.25 reunite the family; or 505.26 (2)that provision of services or further services for the505.27purpose of rehabilitation and reunification is futile and505.28therefore unreasonable under the circumstances; or505.29(3)that reasonable efforts at reunification are not 505.30 required as provided under section 260.012. 505.31 ARTICLE 10 505.32 OTHER HEALTH AND HUMAN SERVICES PROVISIONS 505.33 Section 1. Minnesota Statutes 1998, section 256.485, is 505.34 amended to read: 505.35 256.485 [CHILD WELFARE SERVICES TO MINOR REFUGEES.] 505.36 Subdivision 1. [SPECIAL PROJECTS.] The commissioner of 506.1 human services shall establish a grant program to provide 506.2 specialized child welfare services to Asian and Amerasian 506.3 refugees under the age of 18 who reside in Minnesota. 506.4 Subd. 2. [DEFINITIONS.] For the purpose of this section, 506.5 the following terms have the meanings given them: 506.6 (a) "Refugee" means refugee or asylee status granted by the 506.7 United States Immigration and Naturalization Service. 506.8 (b) "Child welfare services" means treatment or services, 506.9 including workshops or training regarding independent living 506.10 skills, coping skills, and responsible parenting, and family or 506.11 individual counseling regarding career planning, 506.12 intergenerational relationships and communications, and 506.13 emotional or psychological stress. 506.14 Subd. 3. [PROJECT SELECTION.] The commissioner shall 506.15 select projects for funding under this section. Projects 506.16 selected must be administered by service providers who have 506.17 experience in providing child welfare services to minor Asian 506.18 and Amerasian refugees. 506.19 Subd. 4. [PROJECT DESIGN.] Project proposals selected 506.20 under this section must: 506.21 (1) use existing resources when possible; 506.22 (2) provide bilingual services; 506.23 (3) clearly specify program goals and timetables for 506.24 project operation; 506.25 (4) identify support services, social services, and 506.26 referral procedures to be used; and 506.27 (5) identify the training and experience that enable 506.28 project staff to provide services to targeted refugees, as well 506.29 as the number of staff with bilingual service expertise. 506.30 Subd. 5. [ANNUAL REPORT.] Selected service providers must 506.31 report to the commissioner by June 30 of each year on the number 506.32 of refugees served, the average cost per refugee served, the 506.33 number and percentage of refugees who are successfully assisted 506.34 through child welfare services, and recommendations for 506.35 modifications in service delivery for the upcoming year. 506.36 Subd. 6. [EXPIRATION.] This section expires June 30, 2001. 507.1 Sec. 2. [REPEALER.] 507.2 Minnesota Statutes 1998, section 256.973, is repealed. 507.3 ARTICLE 11 507.4 HEALTH PLAN COMPANY REGULATION 507.5 Section 1. Minnesota Statutes 1998, section 62D.11, 507.6 subdivision 1, is amended to read: 507.7 Subdivision 1. [ENROLLEE COMPLAINT SYSTEM.] Every health 507.8 maintenance organization shall establish and maintain a 507.9 complaint system, as required undersection 62Q.105sections 507.10 62Q.68 to 62Q.72 to provide reasonable procedures for the 507.11 resolution of written complaints initiated by or on behalf of 507.12 enrollees concerning the provision of health care 507.13 services."Provision of health services" includes, but is not507.14limited to, questions of the scope of coverage, quality of care,507.15and administrative operations. The health maintenance507.16organization must inform enrollees that they may choose to use507.17arbitration to appeal a health maintenance organization's507.18internal appeal decision. The health maintenance organization507.19must also inform enrollees that they have the right to use507.20arbitration to appeal a health maintenance organization's507.21internal appeal decision not to certify an admission, procedure,507.22service, or extension of stay under section 62M.06. If an507.23enrollee chooses to use arbitration, the health maintenance507.24organization must participate.507.25 (Effective Date: Section 1 (62D.11, subdivision 1) is 507.26 effective January 1, 2000.) 507.27 Sec. 2. Minnesota Statutes 1998, section 62M.01, is 507.28 amended to read: 507.29 62M.01 [CITATION, JURISDICTION, AND SCOPE.] 507.30 Subdivision 1. [POPULAR NAME.] Sections 62M.01 to 62M.16 507.31 may be cited as the "Minnesota Utilization Review Act of 1992." 507.32 Subd. 2. [JURISDICTION.] Sections 62M.01 to 62M.16 apply 507.33 to any insurance company licensed under chapter 60A to offer, 507.34 sell, or issue a policy of accident and sickness insurance as 507.35 defined in section 62A.01; a health service plan licensed under 507.36 chapter 62C; a health maintenance organization licensed under 508.1 chapter 62D; a community integrated service network licensed 508.2 under chapter 62N; an accountable provider network operating 508.3 under chapter 62T; a fraternal benefit society operating under 508.4 chapter 64B; a joint self-insurance employee health plan 508.5 operating under chapter 62H; a multiple employer welfare 508.6 arrangement, as defined in section 3 of the Employee Retirement 508.7 Income Security Act of 1974 (ERISA), United States Code, title 508.8 29, section 1103, as amended; a third party administrator 508.9 licensed under section 60A.23, subdivision 8, that provides 508.10 utilization review services for the administration of benefits 508.11 under a health benefit plan as defined in section 62M.02; or any 508.12 entity performing utilization review on behalf of a business 508.13 entity in this state pursuant to a health benefit plan covering 508.14 a Minnesota resident. 508.15 Subd. 3. [SCOPE.]Sections 62M.02, 62M.07, and 62M.09,508.16subdivision 4, apply to prior authorization of services.508.17 Nothing in sections 62M.01 to 62M.16 applies to review of claims 508.18 after submission to determine eligibility for benefits under a 508.19 health benefit plan. The appeal procedure described in section 508.20 62M.06 applies to any complaint as defined under section 62Q.68, 508.21 subdivision 2, that requires a medical determination in its 508.22 resolution. 508.23 (Effective Date: Section 2 (62M.01, subdivisions 2 and 3) 508.24 are effective January 1, 2000.) 508.25 Sec. 3. Minnesota Statutes 1998, section 62M.02, 508.26 subdivision 3, is amended to read: 508.27 Subd. 3. [ATTENDING DENTIST.] "Attending dentist" means 508.28 the dentist with primary responsibility for the dental care 508.29 provided toa patientan enrollee. 508.30 (Effective Date: Section 3 (62M.02, subdivision 3) is 508.31 effective January 1, 2000.) 508.32 Sec. 4. Minnesota Statutes 1998, section 62M.02, 508.33 subdivision 4, is amended to read: 508.34 Subd. 4. [ATTENDINGPHYSICIANHEALTH CARE PROFESSIONAL.] 508.35 "Attendingphysicianhealth care professional" means 508.36 thephysicianhealth care professional with primary 509.1 responsibility for the care provided toa patient in a hospital509.2or other health care facilityan enrollee. 509.3 (Effective Date: Section 4 (62M.02, subdivision 4) is 509.4 effective January 1, 2000.) 509.5 Sec. 5. Minnesota Statutes 1998, section 62M.02, 509.6 subdivision 5, is amended to read: 509.7 Subd. 5. [CERTIFICATION.] "Certification" means a 509.8 determination by a utilization review organization that an 509.9 admission, extension of stay, or other health care service has 509.10 been reviewed and that it, based on the information provided, 509.11 meets the utilization review requirements of the applicable 509.12 health plan and the healthcarrierplan company will then pay 509.13 for the covered benefit, provided the preexisting limitation 509.14 provisions, the general exclusion provisions, and any 509.15 deductible, copayment, coinsurance, or other policy requirements 509.16 have been met. 509.17 (Effective Date: Section 5 (62M.02, subdivision 5) is 509.18 effective January 1, 2000.) 509.19 Sec. 6. Minnesota Statutes 1998, section 62M.02, 509.20 subdivision 6, is amended to read: 509.21 Subd. 6. [CLAIMS ADMINISTRATOR.] "Claims administrator" 509.22 means an entity that reviews and determines whether to pay 509.23 claims to enrollees, physicians, hospitals, or othersor 509.24 providers based on the contract provisions of the health plan 509.25 contract. Claims administrators may include insurance companies 509.26 licensed under chapter 60A to offer, sell, or issue a policy of 509.27 accident and sickness insurance as defined in section 62A.01; a 509.28 health service plan licensed under chapter 62C; a health 509.29 maintenance organization licensed under chapter 62D; a community 509.30 integrated service network licensed under chapter 62N; an 509.31 accountable provider network operating under chapter 62T; a 509.32 fraternal benefit society operating under chapter 64B; a 509.33 multiple employer welfare arrangement, as defined in section 3 509.34 of the Employee Retirement Income Security Act of 1974 (ERISA), 509.35 United States Code, title 29, section 1103, as amended. 509.36 (Effective Date: Section 6 (62M.02, subdivision 6) is 510.1 effective January 1, 2000.) 510.2 Sec. 7. Minnesota Statutes 1998, section 62M.02, 510.3 subdivision 7, is amended to read: 510.4 Subd. 7. [CLAIMANT.] "Claimant" means the enrolleeor510.5covered personwho files a claim for benefits or a provider of 510.6 services who, pursuant to a contract with a claims 510.7 administrator, files a claim on behalf of an enrollee or covered 510.8 person. 510.9 (Effective Date: Section 7 (62M.02, subdivision 7) is 510.10 effective January 1, 2000.) 510.11 Sec. 8. Minnesota Statutes 1998, section 62M.02, 510.12 subdivision 9, is amended to read: 510.13 Subd. 9. [CONCURRENT REVIEW.] "Concurrent review" means 510.14 utilization review conducted duringa patient'san enrollee's 510.15 hospital stay or course of treatment and has the same meaning as 510.16 continued stay review. 510.17 (Effective Date: Section 8 (62M.02, subdivision 9) is 510.18 effective January 1, 2000.) 510.19 Sec. 9. Minnesota Statutes 1998, section 62M.02, 510.20 subdivision 10, is amended to read: 510.21 Subd. 10. [DISCHARGE PLANNING.] "Discharge planning" means 510.22 the process that assessesa patient'san enrollee's need for 510.23 treatment after hospitalization in order to help arrange for the 510.24 necessary services and resources to effect an appropriate and 510.25 timely discharge. 510.26 (Effective Date: Section 9 (62M.02, subdivision 10) is 510.27 effective January 1, 2000.) 510.28 Sec. 10. Minnesota Statutes 1998, section 62M.02, 510.29 subdivision 11, is amended to read: 510.30 Subd. 11. [ENROLLEE.] "Enrollee" means an individualwho510.31has elected to contract for, or participate in, a health benefit510.32plan for enrollee coverage or for dependent coveragecovered by 510.33 a health benefit plan and includes an insured policyholder, 510.34 subscriber contract holder, member, covered person, or 510.35 certificate holder. 510.36 (Effective Date: Section 10 (62M.02, subdivision 11) is 511.1 effective January 1, 2000.) 511.2 Sec. 11. Minnesota Statutes 1998, section 62M.02, 511.3 subdivision 12, is amended to read: 511.4 Subd. 12. [HEALTH BENEFIT PLAN.] "Health benefit plan" 511.5 means a policy, contract, or certificate issued by a health 511.6carrier to an employer or individualplan company for the 511.7 coverage of medical, dental, or hospital benefits. A health 511.8 benefit plan does not include coverage that is: 511.9 (1) limited to disability or income protection coverage; 511.10 (2) automobile medical payment coverage; 511.11 (3) supplemental to liability insurance; 511.12 (4) designed solely to provide payments on a per diem, 511.13 fixed indemnity, or nonexpense incurred basis; 511.14 (5) credit accident and health insurance issued under 511.15 chapter 62B; 511.16 (6) blanket accident and sickness insurance as defined in 511.17 section 62A.11; 511.18 (7) accident only coverage issued by a licensed and tested 511.19 insurance agent; or 511.20 (8) workers' compensation. 511.21 (Effective Date: Section 11 (62M.02, subdivision 12) is 511.22 effective January 1, 2000.) 511.23 Sec. 12. Minnesota Statutes 1998, section 62M.02, is 511.24 amended by adding a subdivision to read: 511.25 Subd. 12a. [HEALTH PLAN COMPANY.] "Health plan company" 511.26 means a health plan company as defined in section 62Q.01, 511.27 subdivision 4, and includes an accountable provider network 511.28 operating under chapter 62T. 511.29 (Effective Date: Section 12 (62M.02, subdivision 12a) is 511.30 effective January 1, 2000.) 511.31 Sec. 13. Minnesota Statutes 1998, section 62M.02, 511.32 subdivision 17, is amended to read: 511.33 Subd. 17. [PROVIDER.] "Provider" means a licensed health 511.34 care facility, physician, or other health care professional that 511.35 delivers health care services to an enrolleeor covered person. 511.36 (Effective Date: Section 13 (62M.02, subdivision 17) is 512.1 effective January 1, 2000.) 512.2 Sec. 14. Minnesota Statutes 1998, section 62M.02, 512.3 subdivision 20, is amended to read: 512.4 Subd. 20. [UTILIZATION REVIEW.] "Utilization review" means 512.5 the evaluation of the necessity, appropriateness, and efficacy 512.6 of the use of health care services, procedures, and facilities, 512.7 by a person or entity other than the attendingphysicianhealth 512.8 care professional, for the purpose of determining the medical 512.9 necessity of the service or admission. Utilization review also 512.10 includes review conducted after the admission of the enrollee. 512.11 It includes situations where the enrollee is unconscious or 512.12 otherwise unable to provide advance notification.Utilization512.13review does not include the imposition of a requirement that512.14services be received by or upon referral from a participating512.15provider.512.16 (Effective Date: Section 14 (62M.02, subdivision 20) is 512.17 effective January 1, 2000.) 512.18 Sec. 15. Minnesota Statutes 1998, section 62M.02, 512.19 subdivision 21, is amended to read: 512.20 Subd. 21. [UTILIZATION REVIEW ORGANIZATION.] "Utilization 512.21 review organization" means an entity including but not limited 512.22 to an insurance company licensed under chapter 60A to offer, 512.23 sell, or issue a policy of accident and sickness insurance as 512.24 defined in section 62A.01; a health service plan licensed under 512.25 chapter 62C; a health maintenance organization licensed under 512.26 chapter 62D; a community integrated service network licensed 512.27 under chapter 62N; an accountable provider network operating 512.28 under chapter 62T; a fraternal benefit society operating under 512.29 chapter 64B; a joint self-insurance employee health plan 512.30 operating under chapter 62H; a multiple employer welfare 512.31 arrangement, as defined in section 3 of the Employee Retirement 512.32 Income Security Act of 1974 (ERISA), United States Code, title 512.33 29, section 1103, as amended; a third party administrator 512.34 licensed under section 60A.23, subdivision 8, which conducts 512.35 utilization review and determines certification of an admission, 512.36 extension of stay, or other health care services for a Minnesota 513.1 resident; or any entity performing utilization review that is 513.2 affiliated with, under contract with, or conducting utilization 513.3 review on behalf of, a business entity in this state. 513.4 (Effective Date: Section 15 (62M.02, subdivision 21) is 513.5 effective January 1, 2000.) 513.6 Sec. 16. Minnesota Statutes 1998, section 62M.03, 513.7 subdivision 1, is amended to read: 513.8 Subdivision 1. [LICENSED UTILIZATION REVIEW ORGANIZATION.] 513.9 Beginning January 1, 1993, any organization that meets the 513.10 definition of utilization review organization in section 62M.02, 513.11 subdivision 21, must be licensed under chapter 60A, 62C, 62D, 513.12 62N, 62T, or 64B, or registered under this chapter and must 513.13 comply with sections 62M.01 to 62M.16 and section 72A.201, 513.14 subdivisions 8 and 8a. Each licensed community integrated 513.15 service network or health maintenance organization that has an 513.16 employed staff model of providing health care services shall 513.17 comply with sections 62M.01 to 62M.16 and section 72A.201, 513.18 subdivisions 8 and 8a, for any services provided by providers 513.19 under contract. 513.20 (Effective Date: Section 16 (62M.03, subdivision 1) is 513.21 effective January 1, 2000.) 513.22 Sec. 17. Minnesota Statutes 1998, section 62M.03, 513.23 subdivision 3, is amended to read: 513.24 Subd. 3. [PENALTIES AND ENFORCEMENTS.] If a utilization 513.25 review organization fails to comply with sections 62M.01 to 513.26 62M.16, the organization may not provide utilization review 513.27 services for any Minnesota resident. The commissioner of 513.28 commerce may issue a cease and desist order under section 513.29 45.027, subdivision 5, to enforce this provision. The cease and 513.30 desist order is subject to appeal under chapter 14. A 513.31 nonlicensed utilization review organization that fails to comply 513.32 with the provisions of sections 62M.01 to 62M.16 is subject to 513.33 all applicable penalty and enforcement provisions of section 513.34 72A.201. Each utilization review organization licensed under 513.35 chapter 60A, 62C, 62D, 62N, 62T, or 64B shall comply with 513.36 sections 62M.01 to 62M.16 as a condition of licensure. 514.1 (Effective Date: Section 17 (62M.03, subdivision 3) is 514.2 effective January 1, 2000.) 514.3 Sec. 18. Minnesota Statutes 1998, section 62M.04, 514.4 subdivision 1, is amended to read: 514.5 Subdivision 1. [RESPONSIBILITY FOR OBTAINING 514.6 CERTIFICATION.] A health benefit plan that includes utilization 514.7 review requirements must specify the process for notifying the 514.8 utilization review organization in a timely manner and obtaining 514.9 certification for health care services. Each health plan 514.10 company must provide a clear and concise description of this 514.11 process to an enrollee as part of the policy, subscriber 514.12 contract, or certificate of coverage. In addition to the 514.13 enrollee, the utilization review organization must allow any 514.14licensed hospital, physician or the physician'sprovider or 514.15 provider's designee, or responsible patient representative, 514.16 including a family member, to fulfill the obligations under the 514.17 health plan. 514.18 A claims administrator that contracts directly with 514.19 providers for the provision of health care services to enrollees 514.20 may, through contract, require the provider to notify the review 514.21 organization in a timely manner and obtain certification for 514.22 health care services. 514.23 (Effective Date: Section 18 (62M.04, subdivision 1) is 514.24 effective January 1, 2000.) 514.25 Sec. 19. Minnesota Statutes 1998, section 62M.04, 514.26 subdivision 2, is amended to read: 514.27 Subd. 2. [INFORMATION UPON WHICH UTILIZATION REVIEW IS 514.28 CONDUCTED.] If the utilization review organization is conducting 514.29 routine prospective and concurrent utilization review, 514.30 utilization review organizations must collect only the 514.31 information necessary to certify the admission, procedure of 514.32 treatment, and length of stay. 514.33 (a) Utilization review organizations may request, but may 514.34 not require, hospitals, physicians, or otherproviders to supply 514.35 numerically encoded diagnoses or procedures as part of the 514.36 certification process. 515.1 (b) Utilization review organizations must not routinely 515.2 request copies of medical records for all patients reviewed. In 515.3 performing prospective and concurrent review, copies of the 515.4 pertinent portion of the medical record should be required only 515.5 when a difficulty develops in certifying the medical necessity 515.6 or appropriateness of the admission or extension of stay. 515.7 (c) Utilization review organizations may request copies of 515.8 medical records retrospectively for a number of purposes, 515.9 including auditing the services provided, quality assurance 515.10 review, ensuring compliance with the terms of either the health 515.11 benefit plan or the provider contract, and compliance with 515.12 utilization review activities. Except for reviewing medical 515.13 records associated with an appeal or with an investigation or 515.14 audit of data discrepancies,health careproviders must be 515.15 reimbursed for the reasonable costs of duplicating records 515.16 requested by the utilization review organization for 515.17 retrospective review unless otherwise provided under the terms 515.18 of the provider contract. 515.19 (Effective Date: Section 19 (62M.04, subdivision 2) is 515.20 effective January 1, 2000.) 515.21 Sec. 20. Minnesota Statutes 1998, section 62M.04, 515.22 subdivision 3, is amended to read: 515.23 Subd. 3. [DATA ELEMENTS.] Except as otherwise provided in 515.24 sections 62M.01 to 62M.16, for purposes of certification a 515.25 utilization review organization must limit its data requirements 515.26 to the following elements: 515.27 (a) Patient information that includes the following: 515.28 (1) name; 515.29 (2) address; 515.30 (3) date of birth; 515.31 (4) sex; 515.32 (5) social security number or patient identification 515.33 number; 515.34 (6) name of healthcarrierplan company or health plan; and 515.35 (7) plan identification number. 515.36 (b) Enrollee information that includes the following: 516.1 (1) name; 516.2 (2) address; 516.3 (3) social security number or employee identification 516.4 number; 516.5 (4) relation to patient; 516.6 (5) employer; 516.7 (6) health benefit plan; 516.8 (7) group number or plan identification number; and 516.9 (8) availability of other coverage. 516.10 (c) Attendingphysician or providerhealth care 516.11 professional information that includes the following: 516.12 (1) name; 516.13 (2) address; 516.14 (3) telephone numbers; 516.15 (4) degree and license; 516.16 (5) specialty or board certification status; and 516.17 (6) tax identification number or other identification 516.18 number. 516.19 (d) Diagnosis and treatment information that includes the 516.20 following: 516.21 (1) primary diagnosis with associated ICD or DSM coding, if 516.22 available; 516.23 (2) secondary diagnosis with associated ICD or DSM coding, 516.24 if available; 516.25 (3) tertiary diagnoses with associated ICD or DSM coding, 516.26 if available; 516.27 (4) proposed procedures or treatments with ICD or 516.28 associated CPT codes, if available; 516.29 (5) surgical assistant requirement; 516.30 (6) anesthesia requirement; 516.31 (7) proposed admission or service dates; 516.32 (8) proposed procedure date; and 516.33 (9) proposed length of stay. 516.34 (e) Clinical information that includes the following: 516.35 (1) support and documentation of appropriateness and level 516.36 of service proposed; and 517.1 (2) identification of contact person for detailed clinical 517.2 information. 517.3 (f) Facility information that includes the following: 517.4 (1) type; 517.5 (2) licensure and certification status and DRG exempt 517.6 status; 517.7 (3) name; 517.8 (4) address; 517.9 (5) telephone number; and 517.10 (6) tax identification number or other identification 517.11 number. 517.12 (g) Concurrent or continued stay review information that 517.13 includes the following: 517.14 (1) additional days, services, or procedures proposed; 517.15 (2) reasons for extension, including clinical information 517.16 sufficient for support of appropriateness and level of service 517.17 proposed; and 517.18 (3) diagnosis status. 517.19 (h) For admissions to facilities other than acute medical 517.20 or surgical hospitals, additional information that includes the 517.21 following: 517.22 (1) history of present illness; 517.23 (2) patient treatment plan and goals; 517.24 (3) prognosis; 517.25 (4) staff qualifications; and 517.26 (5) 24-hour availability of staff. 517.27 Additional information may be required for other specific 517.28 review functions such as discharge planning or catastrophic case 517.29 management. Second opinion information may also be required, 517.30 when applicable, to support benefit plan requirements. 517.31 (Effective Date: Section 20 (62M.04, subdivision 3) is 517.32 effective January 1, 2000.) 517.33 Sec. 21. Minnesota Statutes 1998, section 62M.04, 517.34 subdivision 4, is amended to read: 517.35 Subd. 4. [ADDITIONAL INFORMATION.] A utilization review 517.36 organization may request information in addition to that 518.1 described in subdivision 3 when there is significant lack of 518.2 agreement between the utilization review organization and the 518.3health careprovider regarding the appropriateness of 518.4 certification during the review or appeal process. For purposes 518.5 of this subdivision, "significant lack of agreement" means that 518.6 the utilization review organization has: 518.7 (1) tentatively determined through its professional staff 518.8 that a service cannot be certified; 518.9 (2) referred the case to a physician for review; and 518.10 (3) talked to or attempted to talk to the attending 518.11physicianhealth care professional for further information. 518.12 Nothing in sections 62M.01 to 62M.16 prohibits a 518.13 utilization review organization from requiring submission of 518.14 data necessary to comply with the quality assurance and 518.15 utilization review requirements of chapter 62D or other 518.16 appropriate data or outcome analyses. 518.17 (Effective Date: Section 21 (62M.04, subdivision 4) is 518.18 effective January 1, 2000.) 518.19 Sec. 22. Minnesota Statutes 1998, section 62M.05, is 518.20 amended to read: 518.21 62M.05 [PROCEDURES FOR REVIEW DETERMINATION.] 518.22 Subdivision 1. [WRITTEN PROCEDURES.] A utilization review 518.23 organization must have written procedures to ensure that reviews 518.24 are conducted in accordance with the requirements of this 518.25 chapterand section 72A.201, subdivision 4a. 518.26 Subd. 2. [CONCURRENT REVIEW.] A utilization review 518.27 organization may review ongoing inpatient stays based on the 518.28 severity or complexity of thepatient'senrollee's condition or 518.29 on necessary treatment or discharge planning activities. Such 518.30 review must not be consistently conducted on a daily basis. 518.31 Subd. 3. [NOTIFICATION OF DETERMINATIONS.] A utilization 518.32 review organization must have written procedures for providing 518.33 notification of its determinations on all certifications in 518.34 accordance withthe following:this section. 518.35 Subd. 3a. [STANDARD REVIEW DETERMINATION.] (a) 518.36 Notwithstanding subdivision 3b, an initial determination on all 519.1 requests for utilization review must be communicated to the 519.2 provider and enrollee in accordance with this subdivision within 519.3 ten business days of the request, provided that all information 519.4 reasonably necessary to make a determination on the request has 519.5 been made available to the utilization review organization. 519.6 (b) When an initial determination is made to certify, 519.7 notification must be provided promptly by telephone to the 519.8 provider. The utilization review organization shall send 519.9 written notification to thehospital, attending physician, or519.10applicable service provider within ten business days of the519.11determination in accordance with section 72A.201, subdivision519.124a,provider or shall maintain an audit trail of the 519.13 determination and telephone notification. For purposes of this 519.14 subdivision, "audit trail" includes documentation of the 519.15 telephone notification, including the date; the name of the 519.16 person spoken to; the enrolleeor patient; the service, 519.17 procedure, or admission certified; and the date of the service, 519.18 procedure, or admission. If the utilization review organization 519.19 indicates certification by use of a number, the number must be 519.20 called the "certification number." 519.21(b)(c) Whenaan initial determination is made not to 519.22 certifya hospital or surgical facility admission or extension519.23of a hospital stay, or other service requiring review519.24determination, notification must be provided by telephone within 519.25 one working day after making thedecisiondetermination to the 519.26 attendingphysicianhealth care professional and hospitalmust519.27be notified by telephoneand a written notification must be sent 519.28 to the hospital, attendingphysicianhealth care professional, 519.29 and enrolleeor patient. The written notification must include 519.30 the principal reason or reasons for the determination and the 519.31 process for initiating an appeal of the determination. Upon 519.32 request, the utilization review organization shall provide 519.33 theattending physician orprovider or enrollee with the 519.34 criteria used to determine the necessity, appropriateness, and 519.35 efficacy of the health care service and identify the database, 519.36 professional treatment parameter, or other basis for the 520.1 criteria. Reasons for a determination not to certify may 520.2 include, among other things, the lack of adequate information to 520.3 certify after a reasonable attempt has been made to contact 520.4 theattending physicianprovider or enrollee. 520.5 (d) When an initial determination is made not to certify, 520.6 the written notification must inform the enrollee and the 520.7 attending health care professional of the right to submit an 520.8 appeal to the internal appeal process described in section 520.9 62M.06 and the procedure for initiating the internal appeal. 520.10 Subd. 3b. [EXPEDITED REVIEW DETERMINATION.] (a) An 520.11 expedited initial determination must be utilized if the 520.12 attending health care professional believes that an expedited 520.13 determination is warranted. 520.14 (b) Notification of an expedited initial determination to 520.15 either certify or not to certify must be provided to the 520.16 hospital, the attending health care professional, and the 520.17 enrollee as expeditiously as the enrollee's medical condition 520.18 requires, but no later than 72 hours from the initial request. 520.19 When an expedited initial determination is made not to certify, 520.20 the utilization review organization must also notify the 520.21 enrollee and the attending health care professional of the right 520.22 to submit an appeal to the expedited internal appeal as 520.23 described in section 62M.06 and the procedure for initiating an 520.24 internal expedited appeal. 520.25 Subd. 4. [FAILURE TO PROVIDE NECESSARY INFORMATION.] A 520.26 utilization review organization must have written procedures to 520.27 address the failure of ahealth careprovider, patient, or520.28representative of eitheror enrollee to provide the necessary 520.29 information for review. If thepatientenrollee or provider 520.30 will not release the necessary information to the utilization 520.31 review organization, the utilization review organization may 520.32 deny certification in accordance with its own policy or the 520.33 policy described in the health benefit plan. 520.34 Subd. 5. [NOTIFICATION TO CLAIMS ADMINISTRATOR.] If the 520.35 utilization review organization and the claims administrator are 520.36 separate entities, the utilization review organization must 521.1 forward, electronically or in writing, a notification of 521.2 certification or determination not to certify to the appropriate 521.3 claims administrator for the health benefit plan. 521.4 (Effective Date: Section 22 (62M.05, subdivisions 1 to 5) 521.5 are effective January 1, 2000.) 521.6 Sec. 23. Minnesota Statutes 1998, section 62M.06, is 521.7 amended to read: 521.8 62M.06 [APPEALS OF DETERMINATIONS NOT TO CERTIFY.] 521.9 Subdivision 1. [PROCEDURES FOR APPEAL.] A utilization 521.10 review organization must have written procedures for appeals of 521.11 determinations not to certifyan admission, procedure, service,521.12or extension of stay. The right to appeal must be available to 521.13 the enrolleeor designeeand to the attendingphysicianhealth 521.14 care professional.The right of appeal must be communicated to521.15the enrollee or designee or to the attending physician, whomever521.16initiated the original certification request, at the time that521.17the original determination is communicated.521.18 Subd. 2. [EXPEDITED APPEAL.] (a) When an initial 521.19 determination not to certify a health care service is made prior 521.20 to or during an ongoing service requiring review,and the 521.21 attendingphysicianhealth care professional believes that the 521.22 determination warrantsimmediatean expedited appeal, the 521.23 utilization review organization must ensure that the enrollee 521.24 and the attendingphysician, enrollee, or designee hashealth 521.25 care professional have an opportunity to appeal the 521.26 determination over the telephone on an expedited basis. In such 521.27 an appeal, the utilization review organization must ensure 521.28 reasonable access to its consulting physician or health care 521.29 provider.Expedited appeals that are not resolved may be521.30resubmitted through the standard appeal process.521.31 (b) The utilization review organization shall notify the 521.32 enrollee and attending health care professional by telephone of 521.33 its determination on the expedited appeal as expeditiously as 521.34 the enrollee's medical condition requires, but no later than 72 521.35 hours after receiving the expedited appeal. 521.36 (c) If the determination not to certify is not reversed 522.1 through the expedited appeal, the utilization review 522.2 organization must include in its notification the right to 522.3 submit the appeal to the external appeal process described in 522.4 section 62Q.73 and the procedure for initiating the process. 522.5 This information must be provided in writing to the enrollee and 522.6 the attending health care professional as soon as practical. 522.7 Subd. 3. [STANDARD APPEAL.] The utilization review 522.8 organization must establish procedures for appeals to be made 522.9 either in writing or by telephone. 522.10 (a)EachA utilization review organization shall notify in 522.11 writing the enrolleeor patient, attendingphysicianhealth care 522.12 professional, and claims administrator of its determination on 522.13 the appealas soon as practical, but in no case later than 45522.14days after receiving the required documentation on the522.15appealwithin 30 days upon receipt of the notice of appeal. 522.16 (b) The documentation required by the utilization review 522.17 organization may include copies of part or all of the medical 522.18 record and a written statement from the attending health care 522.19providerprofessional. 522.20 (c) Prior to upholding theoriginal decisioninitial 522.21 determination not to certify for clinical reasons, the 522.22 utilization review organization shall conduct a review of the 522.23 documentation by a physician who did not make theoriginal522.24 initial determination not to certify. 522.25 (d) The process established by a utilization review 522.26 organization may include defining a period within which an 522.27 appeal must be filed to be considered. The time period must be 522.28 communicated to thepatient,enrollee, orand attending 522.29physicianhealth care professional when the initial 522.30 determination is made. 522.31 (e) An attendingphysicianhealth care professional or 522.32 enrollee who has been unsuccessful in an attempt to reverse a 522.33 determination not to certify shall, consistent with section 522.34 72A.285, be provided the following: 522.35 (1) a complete summary of the review findings; 522.36 (2) qualifications of the reviewers, including any license, 523.1 certification, or specialty designation; and 523.2 (3) the relationship between the enrollee's diagnosis and 523.3 the review criteria used as the basis for the decision, 523.4 including the specific rationale for the reviewer's decision. 523.5 (f) In cases of appeal to reverse a determination not to 523.6 certify for clinical reasons, the utilization review 523.7 organization must, upon request of the attendingphysician523.8 health care professional, ensure that a physician of the 523.9 utilization review organization's choice in the same or a 523.10 similar general specialty as typically manages the medical 523.11 condition, procedure, or treatment under discussion is 523.12 reasonably available to review the case. 523.13 (g) If the initial determination is not reversed on appeal, 523.14 the utilization review organization must include in its 523.15 notification the right to submit the appeal to the external 523.16 review process described in section 62Q.73 and the procedure for 523.17 initiating the external process. 523.18 Subd. 4. [NOTIFICATION TO CLAIMS ADMINISTRATOR.] If the 523.19 utilization review organization and the claims administrator are 523.20 separate entities, the utilization review organization 523.21 mustforwardnotify, either electronically or in writing,a523.22notification of certification or determination not to certify to523.23 the appropriate claims administrator for the health benefit plan 523.24 of any determination not to certify that is reversed on appeal. 523.25 (Effective Date: Section 23 (62M.06, subdivisions 1 to 4) 523.26 are effective January 1, 2000.) 523.27 Sec. 24. Minnesota Statutes 1998, section 62M.07, is 523.28 amended to read: 523.29 62M.07 [PRIOR AUTHORIZATION OF SERVICES.] 523.30 (a) Utilization review organizations conducting prior 523.31 authorization of services must have written standards that meet 523.32 at a minimum the following requirements: 523.33 (1) written procedures and criteria used to determine 523.34 whether care is appropriate, reasonable, or medically necessary; 523.35 (2) a system for providing prompt notification of its 523.36 determinations to enrollees and providers and for notifying the 524.1 provider, enrollee, or enrollee's designee of appeal procedures 524.2 under clause (4); 524.3 (3) compliance with section72A.20162M.05, subdivision4a524.4 3, regarding time frames for approving and disapproving prior 524.5 authorization requests; 524.6 (4) written procedures for appeals of denials of prior 524.7 authorization which specify the responsibilities of the enrollee 524.8 and provider, and which meet the requirements ofsection524.9 sections 62M.06 and 72A.285, regarding release of summary review 524.10 findings; and 524.11 (5) procedures to ensure confidentiality of 524.12 patient-specific information, consistent with applicable law. 524.13 (b) No utilization review organization, health plan 524.14 company, or claims administrator may conduct or require prior 524.15 authorization of emergency confinement or emergency treatment. 524.16 The enrollee or the enrollee's authorized representative may be 524.17 required to notify the health plan company, claims 524.18 administrator, or utilization review organization as soon after 524.19 the beginning of the emergency confinement or emergency 524.20 treatment as reasonably possible. 524.21 (Effective Date: Section 24 (62M.07) is effective January 524.22 1, 2000.) 524.23 Sec. 25. Minnesota Statutes 1998, section 62M.09, 524.24 subdivision 3, is amended to read: 524.25 Subd. 3. [PHYSICIAN REVIEWER INVOLVEMENT.] A physician 524.26 must review all cases in which the utilization review 524.27 organization has concluded that a determination not to certify 524.28 for clinical reasons is appropriate. The physician should be 524.29 reasonably available by telephone to discuss the determination 524.30 with the attendingphysicianhealth care professional. This 524.31 subdivision does not apply to outpatient mental health or 524.32 substance abuse services governed by subdivision 3a. 524.33 (Effective Date: Section 25 (62M.09, subdivision 3) is 524.34 effective January 1, 2000.) 524.35 Sec. 26. Minnesota Statutes 1998, section 62M.10, 524.36 subdivision 2, is amended to read: 525.1 Subd. 2. [REVIEWS DURING NORMAL BUSINESS HOURS.] A 525.2 utilization review organization must conduct its telephone 525.3 reviews, on-site reviews, and hospital communications during 525.4hospitals' and physicians'reasonable and normal business hours, 525.5 unless otherwise mutually agreed. 525.6 (Effective Date: Section 26 (62M.10, subdivision 2) is 525.7 effective January 1, 2000.) 525.8 Sec. 27. Minnesota Statutes 1998, section 62M.10, 525.9 subdivision 5, is amended to read: 525.10 Subd. 5. [ORAL REQUESTS FOR INFORMATION.] Utilization 525.11 review organizations shall orally inform, upon request, 525.12 designated hospital personnel or the attendingphysicianhealth 525.13 care professional of the utilization review requirements of the 525.14 specific health benefit plan and the general type of criteria 525.15 used by the review agent. Utilization review organizations 525.16 should also orally inform, upon request,hospitals, physicians,525.17and other health care professionalsa provider of the 525.18 operational procedures in order to facilitate the review process. 525.19 (Effective Date: Section 27 (62M.10, subdivision 5) is 525.20 effective January 1, 2000.) 525.21 Sec. 28. Minnesota Statutes 1998, section 62M.10, 525.22 subdivision 7, is amended to read: 525.23 Subd. 7. [AVAILABILITY OF CRITERIA.] Upon request, a 525.24 utilization review organization shall provide to an enrollee or 525.25 toan attending physician ora provider the criteria used for a 525.26 specific procedure to determine the necessity, appropriateness, 525.27 and efficacy of that procedure and identify the database, 525.28 professional treatment guideline, or other basis for the 525.29 criteria. 525.30 (Effective Date: Section 28 (62M.10, subdivision 7) is 525.31 effective January 1, 2000.) 525.32 Sec. 29. Minnesota Statutes 1998, section 62M.12, is 525.33 amended to read: 525.34 62M.12 [PROHIBITION OF INAPPROPRIATE INCENTIVES.] 525.35 No individual who is performing utilization review may 525.36 receive any financial incentive based on the number of denials 526.1 of certifications made by such individual, provided that 526.2 utilization review organizations may establish medically 526.3 appropriate performance standards. This prohibition does not 526.4 apply to financial incentives established between healthplans526.5 plan companies andtheirproviders. 526.6 (Effective Date: Section 29 (62M.12) is effective January 526.7 1, 2000.) 526.8 Sec. 30. Minnesota Statutes 1998, section 62M.15, is 526.9 amended to read: 526.10 62M.15 [APPLICABILITY OF OTHER CHAPTER REQUIREMENTS.] 526.11 The requirements of this chapter regarding the conduct of 526.12 utilization review are in addition to any specific requirements 526.13 contained in chapter 62A, 62C, 62D, 62Q, or 72A. 526.14 (Effective Date: Section 30 (62M.15) is effective January 526.15 1, 2000.) 526.16 Sec. 31. Minnesota Statutes 1998, section 62Q.106, is 526.17 amended to read: 526.18 62Q.106 [DISPUTE RESOLUTION BY COMMISSIONER.] 526.19 A complainant may at any time submit a complaint to the 526.20 appropriate commissioner to investigate. After investigating a 526.21 complaint, or reviewing a company's decision, the appropriate 526.22 commissioner may order a remedy as authorized undersection526.2362Q.30 orchapter 45, 60A, or 62D. 526.24 (Effective Date: Section 31 (62Q.106) is effective January 526.25 1, 2000.) 526.26 Sec. 32. Minnesota Statutes 1998, section 62Q.19, 526.27 subdivision 5a, is amended to read: 526.28 Subd. 5a. [COOPERATION.] Each health plan company and 526.29 essential community provider shall cooperate to facilitate the 526.30 use of the essential community provider by the high risk and 526.31 special needs populations. This includes cooperation on the 526.32 submission and processing of claims, sharing of all pertinent 526.33 records and data, including performance indicators and specific 526.34 outcomes data, and the use of all dispute resolution methodsas526.35defined in section 62Q.11, subdivision 1. 526.36 (Effective Date: Section 32 (62Q.19, subdivision 5a) is 527.1 effective January 1, 2000.) 527.2 Sec. 33. [62Q.68] [DEFINITIONS.] 527.3 Subdivision 1. [APPLICATION.] For purposes of sections 527.4 62Q.68 to 62Q.72, the terms defined in this section have the 527.5 meanings given them. For purposes of sections 62Q.69 and 527.6 62Q.70, the term "health plan company" does not include an 527.7 insurance company licensed under chapter 60A to offer, sell, or 527.8 issue a policy of accident and sickness insurance as defined in 527.9 section 62A.01. 527.10 Subd. 2. [COMPLAINT.] "Complaint" means any grievance 527.11 against a health plan company that is not the subject of 527.12 litigation and that has been submitted by a complainant to a 527.13 health plan company regarding the provision of health services 527.14 including, but not limited to, the scope of coverage for health 527.15 care services; retrospective denials or limitations of payment 527.16 for services; eligibility issues; denials, cancellations, or 527.17 nonrenewals of coverage; administrative operations; and the 527.18 quality, timeliness, and appropriateness of health care services 527.19 rendered. If the complaint is from an applicant, the complaint 527.20 must relate to the application. If the complaint is from a 527.21 former enrollee, the complaint must relate to services received 527.22 during the period of time the individual was an enrollee. Any 527.23 grievance requiring a medical determination in its resolution 527.24 must be processed under the appeal procedure described in 527.25 section 62M.06. 527.26 Subd. 3. [COMPLAINANT.] "Complainant" means an enrollee, 527.27 applicant, or former enrollee, or anyone acting on behalf of an 527.28 enrollee, applicant, or former enrollee who submits a complaint. 527.29 (Effective Date: Section 33 (62Q.68, subdivisions 1 to 3) 527.30 are effective January 1, 2000.) 527.31 Sec. 34. [62Q.69] [COMPLAINT RESOLUTION.] 527.32 Subdivision 1. [ESTABLISHMENT.] Each health plan company 527.33 must establish and maintain an internal complaint resolution 527.34 process that meets the requirements of this section to provide 527.35 for the resolution of a complaint initiated by a complainant. 527.36 Subd. 2. [PROCEDURES FOR FILING A COMPLAINT.] (a) A 528.1 complainant may submit a complaint to a health plan company 528.2 either by telephone or in writing. If a complaint is submitted 528.3 orally and the resolution of the complaint is partially or 528.4 wholly adverse to the complainant, or the oral complaint is not 528.5 resolved by the health plan company within ten days of receiving 528.6 the complaint, the health plan company must inform the 528.7 complainant that the complaint may be submitted in writing and 528.8 must promptly mail a complaint form to the complainant. The 528.9 complaint form must include the following information: 528.10 (1) the telephone number of the office of health care 528.11 consumer assistance, advocacy, and information, and the health 528.12 plan company member services or other departments or persons 528.13 equipped to advise complainants on complaint resolution; 528.14 (2) the address to which the form must be sent; 528.15 (3) a description of the health plan company's internal 528.16 complaint procedure and the applicable time limits; and 528.17 (4) the toll-free telephone number of either the 528.18 commissioner of health or commerce and notification that the 528.19 complainant has the right to submit the complaint at any time to 528.20 the appropriate commissioner for investigation. 528.21 (b) Upon receipt of a written complaint, the health plan 528.22 company must notify the complainant within ten business days 528.23 that the complaint was received, unless the complaint is 528.24 resolved to the satisfaction of the complainant within the ten 528.25 business days. 528.26 (c) At the complainant's request, a health plan company 528.27 must provide a complainant with any assistance needed to file a 528.28 written complaint. 528.29 (d) Each health plan company must provide, in the member 528.30 handbook, subscriber contract, or certification of coverage, a 528.31 clear and concise description of how to submit a complaint and a 528.32 statement that, upon request, assistance in submitting a written 528.33 complaint is available from the health plan company. 528.34 Subd. 3. [NOTIFICATION OF COMPLAINT DECISIONS.] (a) The 528.35 health plan company must notify the complainant in writing of 528.36 its decision and the reasons for it as soon as practical but in 529.1 no case later than 30 days after receipt of a written complaint. 529.2 (b) If the decision is partially or wholly adverse to the 529.3 complainant, the notification must inform the complainant of the 529.4 right to appeal the decision to the health plan company's 529.5 internal appeal process described in section 62Q.70 and the 529.6 procedure for initiating an appeal. 529.7 (c) The notification must also inform the complainant of 529.8 the right to submit the complaint at any time to either the 529.9 commissioner of health or commerce for investigation and the 529.10 toll-free telephone number of the appropriate commissioner. 529.11 (Effective Date: Section 34 (62Q.69, subdivisions 1 to 3) 529.12 are effective January 1, 2000.) 529.13 Sec. 35. [62Q.70] [APPEAL OF THE COMPLAINT DECISION.] 529.14 Subdivision 1. [ESTABLISHMENT.] (a) Each health plan 529.15 company shall establish an internal appeal process for reviewing 529.16 a health plan company's decision regarding a complaint filed in 529.17 accordance with section 62Q.69. The appeal process must meet 529.18 the requirements of this section. 529.19 (b) The person or persons with authority to resolve or 529.20 recommend the resolution of the internal appeal must not be 529.21 solely the same person or persons who made the complaint 529.22 decision under section 62Q.69. 529.23 (c) The internal appeal process must permit the receipt of 529.24 testimony, correspondence, explanations, or other information 529.25 from the complainant, staff persons, administrators, providers, 529.26 or other persons as deemed necessary by the person or persons 529.27 investigating or presiding over the appeal. 529.28 Subd. 2. [PROCEDURES FOR FILING AN APPEAL.] If a 529.29 complainant notifies the health plan company of the 529.30 complainant's desire to appeal the health plan company's 529.31 decision regarding the complaint through the internal appeal 529.32 process, the health plan company must provide the complainant 529.33 the option for the appeal to occur either in writing or by 529.34 hearing. 529.35 Subd. 3. [NOTIFICATION OF APPEAL DECISIONS.] (a) Written 529.36 notice of the appeal decision and all key findings must be given 530.1 to the complainant within 30 days of the health plan company's 530.2 receipt of the complainant's written notice of appeal. 530.3 (b) If the appeal decision is partially or wholly adverse 530.4 to the complainant, the notice must advise the complainant of 530.5 the right to submit the appeal decision to the external review 530.6 process described in section 62Q.73 and the procedure for 530.7 initiating the external process. 530.8 (c) Upon the request of the complainant, the health plan 530.9 company must provide the complainant with a complete summary of 530.10 the appeal decision. 530.11 (Effective Date: Section 35 (62Q.70, subdivisions 1 to 3) 530.12 are effective January 1, 2000.) 530.13 Sec. 36. [62Q.71] [NOTICE TO ENROLLEES.] 530.14 Each health plan company shall provide to enrollees a clear 530.15 and concise description of their complaint resolution procedure 530.16 and the procedure used for utilization review as defined under 530.17 chapter 62M as part of the member handbook, subscriber contract, 530.18 or certificate of coverage. The description must specifically 530.19 inform enrollees: 530.20 (1) how to submit a complaint to the health plan company; 530.21 (2) if the health plan includes utilization review 530.22 requirements, how to notify the utilization review organization 530.23 in a timely manner and how to obtain certification for health 530.24 care services; 530.25 (3) how to request an appeal either through the procedures 530.26 described in sections 62Q.69 and 62Q.70 or through the 530.27 procedures described in chapter 62M; 530.28 (4) of the right to file a complaint with either the 530.29 commissioner of health or commerce at any time during the 530.30 complaint and appeal process; 530.31 (5) the toll-free telephone number of the appropriate 530.32 commissioner; 530.33 (6) the telephone number of the office of consumer 530.34 assistance, advocacy, and information; and 530.35 (7) of the right to obtain an external review under section 530.36 62Q.73 and a description of when and how that right may be 531.1 exercised. 531.2 (Effective Date: Section 36 (62Q.71) is effective January 531.3 1, 2000.) 531.4 Sec. 37. [62Q.72] [RECORDKEEPING; REPORTING.] 531.5 Subdivision 1. [RECORDKEEPING.] Each health plan company 531.6 shall maintain records of all enrollee complaints and their 531.7 resolutions. These records shall be retained for five years and 531.8 shall be made available to the appropriate commissioner upon 531.9 request. 531.10 Subd. 2. [REPORTING.] Each health plan company shall 531.11 submit to the appropriate commissioner, as part of the company's 531.12 annual filing, data on the number and type of complaints that 531.13 are not resolved within 30 days. A health plan company shall 531.14 also make this information available to the public upon request. 531.15 (Effective Date: Section 37 (62Q.72, subdivisions 1 and 2) 531.16 are effective January 1, 2000.) 531.17 Sec. 38. [62Q.73] [EXTERNAL REVIEW OF ADVERSE 531.18 DETERMINATIONS.] 531.19 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 531.20 section, the term defined in this subdivision has the meaning 531.21 given it. 531.22 (b) An adverse determination means: 531.23 (1) a complaint decision relating to a health care service 531.24 or claim that has been appealed in accordance with section 531.25 62Q.70 and the appeal decision is partially or wholly adverse to 531.26 the complainant; or 531.27 (2) any initial determination not to certify that has been 531.28 appealed in accordance with section 62M.06 and the appeal did 531.29 not reverse the initial determination not to certify. 531.30 An adverse determination does not include complaints relating to 531.31 fraudulent marketing practices or agent misrepresentation. 531.32 Subd. 2. [RIGHT TO EXTERNAL REVIEW.] (a) Any enrollee or 531.33 anyone acting on behalf of an enrollee who has received an 531.34 adverse determination may submit a written request for an 531.35 external review of the adverse determination to the commissioner 531.36 of health if the request involves a health plan company 532.1 regulated by that commissioner or to the commissioner of 532.2 commerce if the request involves a health plan company regulated 532.3 by that commissioner. The written request must be accompanied 532.4 by a filing fee of $25. The fee may be waived by the 532.5 commissioner of health or commerce in cases of financial 532.6 hardship. 532.7 (b) Nothing in this section requires the commissioner of 532.8 health or commerce to independently investigate an adverse 532.9 determination referred for independent external review. 532.10 (c) If an enrollee requests an external review, the health 532.11 plan company must participate in the external review. The cost 532.12 of the external review in excess of the filing fee described in 532.13 paragraph (a) shall be borne by the health plan company. 532.14 Subd. 3. [CONTRACT.] Pursuant to a request for proposal, 532.15 the commissioner of administration, in consultation with the 532.16 commissioners of health and commerce, shall contract with an 532.17 organization or business entity to provide independent external 532.18 reviews of all adverse determinations submitted for external 532.19 review. The contract shall ensure that the fees for services 532.20 rendered in connection with the reviews be reasonable. 532.21 Subd. 4. [CRITERIA.] The request for proposal must require 532.22 that the entity be affiliated with an institution of higher 532.23 learning and demonstrate: 532.24 (1) no conflicts of interest in that it is not owned, a 532.25 subsidiary of, or affiliated with a health plan company or 532.26 utilization review organization; 532.27 (2) an expertise in dispute resolution; 532.28 (3) an expertise in health related law; 532.29 (4) an ability to conduct reviews using a variety of 532.30 procedures depending upon the nature of the dispute; 532.31 (5) an ability to provide data to the commissioners of 532.32 health and commerce on reviews conducted; and 532.33 (6) an ability to ensure confidentiality of medical records 532.34 and other enrollee information. 532.35 Subd. 5. [PROCESS.] (a) Upon receiving a request for an 532.36 external review, the external review entity must provide 533.1 immediate notice of the review to the enrollee and to the health 533.2 plan company. Within ten business days of receiving notice of 533.3 the review the health plan company and the enrollee must provide 533.4 the external review entity with any information that they wish 533.5 to be considered. Each party shall be provided an opportunity 533.6 to present its version of the facts and arguments. An enrollee 533.7 may be assisted or represented by a person of the enrollee's 533.8 choice. 533.9 (b) As part of the external review process, an independent 533.10 medical opinion may be sought as necessary. A medical review 533.11 panel may be used to provide additional technical expertise when 533.12 the issue presented is complex and clinical guidelines are 533.13 absent, ambiguous, unclear, or conflicting. 533.14 (c) An external review shall be made as soon as practical 533.15 but in no case later than 40 days after receiving the request 533.16 for an external review and must promptly send written notice of 533.17 the decision and the reasons for it to the enrollee, the health 533.18 plan company, and to the commissioner who is responsible for 533.19 regulating the health plan company. 533.20 Subd. 6. [EFFECTS OF EXTERNAL REVIEW.] A decision rendered 533.21 under this section shall be nonbinding on the enrollee and 533.22 binding on the health plan company. The health plan company may 533.23 seek judicial review of the decision on the grounds that the 533.24 decision was arbitrary and capricious or involved an abuse of 533.25 discretion. 533.26 Subd. 7. [IMMUNITY FROM CIVIL LIABILITY.] A person who 533.27 participates in an external review by investigating, reviewing 533.28 materials, providing technical expertise, or rendering a 533.29 decision shall not be civilly liable for any action that is 533.30 taken in good faith, that is within the scope of the person's 533.31 duties, and that does not constitute willful or reckless 533.32 misconduct. 533.33 Subd. 8. [DATA REPORTING.] The commissioners shall make 533.34 available to the public, upon request, summary data on the 533.35 decisions rendered under this section, including the number of 533.36 reviews heard and decided and the final outcomes. Any data 534.1 released to the public must not individually identify the 534.2 enrollee initiating the request for external review. 534.3 (Effective Date: Section 38 (62Q.73, subdivisions 1 to 8) 534.4 are effective January 1, 2000.) 534.5 Sec. 39. Minnesota Statutes 1998, section 62T.04, is 534.6 amended to read: 534.7 62T.04 [COMPLAINT SYSTEM.] 534.8 Accountable provider networks must establish and maintain 534.9 an enrollee complaint system as required undersection534.1062Q.105sections 62Q.68 to 62Q.72. The accountable provider 534.11 network may contract with the health care purchasing alliance or 534.12 a vendor for operation of this system. 534.13 (Effective Date: Section 39 (62T.04) is effective January 534.14 1, 2000.) 534.15 Sec. 40. Minnesota Statutes 1998, section 72A.201, 534.16 subdivision 4a, is amended to read: 534.17 Subd. 4a. [STANDARDS FOR PREAUTHORIZATION APPROVAL.] If a 534.18 policy of accident and sickness insurance or a subscriber 534.19 contract requires preauthorization approval for any nonemergency 534.20 services or benefits, the decision to approve or disapprove the 534.21 requested services or benefits must becommunicated to the534.22insured or the insured's health care provider within ten534.23business days of the preauthorization request provided that all534.24information reasonably necessary to make a decision on the534.25request has been made available to the insurerprocessed 534.26 according to section 62M.07. 534.27 (Effective Date: Section 40 (72A.201, subdivision 4a) is 534.28 effective January 1, 2000.) 534.29 Sec. 41. Minnesota Statutes 1998, section 256B.692, 534.30 subdivision 2, is amended to read: 534.31 Subd. 2. [DUTIES OF THE COMMISSIONER OF HEALTH.] 534.32 Notwithstanding chapters 62D and 62N, a county that elects to 534.33 purchase medical assistance and general assistance medical care 534.34 in return for a fixed sum without regard to the frequency or 534.35 extent of services furnished to any particular enrollee is not 534.36 required to obtain a certificate of authority under chapter 62D 535.1 or 62N. A county that elects to purchase medical assistance and 535.2 general assistance medical care services under this section must 535.3 satisfy the commissioner of health that the requirements of 535.4 chapter 62D, applicable to health maintenance organizations, or 535.5 chapter 62N, applicable to community integrated service 535.6 networks, will be met. A county must also assure the 535.7 commissioner of health that the requirements of sections 535.8 62J.041; 62J.48; 62J.71 to 62J.73; 62M.01 to 62M.16; all 535.9 applicable provisions of chapter 62Q, including sections 62Q.07; 535.10 62Q.075;62Q.105;62Q.1055; 62Q.106;62Q.11;62Q.12; 62Q.135; 535.11 62Q.14; 62Q.145; 62Q.19; 62Q.23, paragraph (c);62Q.30;62Q.43; 535.12 62Q.47; 62Q.50; 62Q.52 to 62Q.56; 62Q.58; 62Q.64; 62Q.68 to 535.13 62Q.72; and 72A.201 will be met. All enforcement and rulemaking 535.14 powers available under chapters 62D, 62J, 62M, 62N, and 62Q are 535.15 hereby granted to the commissioner of health with respect to 535.16 counties that purchase medical assistance and general assistance 535.17 medical care services under this section. 535.18 (Effective Date: Section 41 (256B.692, subdivision 2) is 535.19 effective January 1, 2000.) 535.20 Sec. 42. [REPEALER.] 535.21 (a) Minnesota Statutes 1998, sections 62D.11, subdivisions 535.22 1b and 2; and 62Q.11, are repealed effective January 1, 2000. 535.23 (b) Minnesota Statutes 1998, sections 62Q.105 and 62Q.30, 535.24 are repealed effective July 1, 1999. 535.25 (c) Minnesota Rules, parts 4685.0100, subparts 4 and 4a; 535.26 and 4685.1700, are repealed effective January 1, 2000. 535.27 Sec. 43. [EFFECTIVE DATE.] 535.28 When preparing the health and human services conference 535.29 committee report for adoption by the legislature, the revisor 535.30 shall combine all the effective date notations into this 535.31 effective date section.