1.1                          A bill for an act 
  1.2             relating to human services; modifying state-operated 
  1.3             services; changing adult mental health day treatment 
  1.4             and consolidated chemical dependency treatment fund 
  1.5             requirements; amending Minnesota Statutes 1998, 
  1.6             sections 16C.10, subdivision 5; 245.4712, subdivision 
  1.7             2; 246.18, subdivision 6; 253B.045, by adding 
  1.8             subdivisions; 253B.07, subdivision 1; 253B.185, by 
  1.9             adding a subdivision; 254B.01, by adding a 
  1.10            subdivision; 254B.02, subdivision 3; 254B.03, 
  1.11            subdivision 2; 254B.04, subdivision 1; 254B.05, 
  1.12            subdivision 1; and 256.01, subdivision 6; Laws 1995, 
  1.13            chapter 207, article 8, section 41, as amended; 
  1.14            proposing coding for new law in Minnesota Statutes, 
  1.15            chapter 246. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 1998, section 16C.10, 
  1.18  subdivision 5, is amended to read: 
  1.19     Subd. 5.  [SPECIFIC PURCHASES.] The solicitation process 
  1.20  described in this chapter is not required for acquisition of the 
  1.21  following: 
  1.22     (1) merchandise for resale purchased under policies 
  1.23  determined by the commissioner; 
  1.24     (2) farm and garden products which, as determined by the 
  1.25  commissioner, may be purchased at the prevailing market price on 
  1.26  the date of sale; 
  1.27     (3) goods and services from the Minnesota correctional 
  1.28  facilities; 
  1.29     (4) goods and services from rehabilitation facilities and 
  1.30  sheltered workshops that are certified by the commissioner of 
  2.1   economic security; 
  2.2      (5) goods and services for use by a community-based 
  2.3   ~~residential~~ facility operated by the commissioner of human 
  2.4   services; 
  2.5      (6) goods purchased at auction or when submitting a sealed 
  2.6   bid at auction provided that before authorizing such an action, 
  2.7   the commissioner consult with the requesting agency to determine 
  2.8   a fair and reasonable value for the goods considering factors 
  2.9   including, but not limited to, costs associated with submitting 
  2.10  a bid, travel, transportation, and storage.  This fair and 
  2.11  reasonable value must represent the limit of the state's bid; 
  2.12  and 
  2.13     (7) utility services where no competition exists or where 
  2.14  rates are fixed by law or ordinance. 
  2.15     Sec. 2.  Minnesota Statutes 1998, section 245.4712, 
  2.16  subdivision 2, is amended to read: 
  2.17     Subd. 2.  [DAY TREATMENT SERVICES PROVIDED.] (a) Day 
  2.18  treatment services must be developed as a part of the community 
  2.19  support services available to adults with serious and persistent 
  2.20  mental illness residing in the county.  Adults may be required 
  2.21  to pay a fee according to section 245.481.  Day treatment 
  2.22  services must be designed to:  
  2.23     (1) provide a structured environment for treatment; 
  2.24     (2) provide support for residing in the community; 
  2.25     (3) prevent placement in settings that are more intensive, 
  2.26  costly, or restrictive than necessary and appropriate to meet 
  2.27  client need; 
  2.28     (4) coordinate with or be offered in conjunction with a 
  2.29  local education agency's special education program; and 
  2.30     (5) operate on a continuous basis throughout the year.  
  2.31     (b) For purposes of complying with medical assistance 
  2.32  requirements, an adult day treatment program may choose among 
  2.33  the methods of clinical supervision specified in: 
  2.34     (1) Minnesota Rules, part 9505.0323, subpart 1, item F; 
  2.35     (2) Minnesota Rules, part 9505.0324, subpart 6, item F; or 
  2.36     (3) Minnesota Rules, part 9520.0800, subparts 2 to 6. 
  3.1      A day treatment program may demonstrate compliance with 
  3.2   these clinical supervision requirements by obtaining 
  3.3   certification from the commissioner under Minnesota Rules, parts 
  3.4   9520.0750 to 9520.0870, or by documenting in its own records 
  3.5   that it complies with one of the above methods. 
  3.6      (c) County boards may request a waiver from including day 
  3.7   treatment services if they can document that:  
  3.8      (1) an alternative plan of care exists through the county's 
  3.9   community support services for clients who would otherwise need 
  3.10  day treatment services; 
  3.11     (2) day treatment, if included, would be duplicative of 
  3.12  other components of the community support services; and 
  3.13     (3) county demographics and geography make the provision of 
  3.14  day treatment services cost ineffective and infeasible.  
  3.15     Sec. 3.  [246.0136] [TRANSITION OF REGIONAL TREATMENT 
  3.16  CENTERS AND OTHER STATE-OPERATED SERVICES.] 
  3.17     Beginning with the 2000-2001 biennium the commissioner of 
  3.18  human services is directed to establish enterprise activities 
  3.19  within state-operated services.  Enterprise activities are 
  3.20  defined as the range of services needed by people with 
  3.21  disabilities, which are delivered by state employees, and are 
  3.22  fully funded by public or private third-party health insurance 
  3.23  or other revenue sources that are available to the client that 
  3.24  provide reimbursement for the care provided.  State-operated 
  3.25  services shall specialize in caring for vulnerable people for 
  3.26  whom no other providers are available or for whom state-operated 
  3.27  services may be the selected provider.  The commissioner shall 
  3.28  determine prior to the biennial budget request the programs or 
  3.29  services within state-operated services that may be transitioned 
  3.30  to enterprise activities.  Prior to the implementation of the 
  3.31  enterprise activity, the commissioner shall demonstrate that 
  3.32  there is public or private third-party health insurance or other 
  3.33  revenue available to the individuals served, that the revenues 
  3.34  collected fully fund the services, and that there are sufficient 
  3.35  funds for cash flow purposes.  In subsequent biennia the base 
  3.36  state appropriation for state-operated services will be reduced 
  4.1   proportionate to the size of the enterprise activity.  
  4.2   Implementation of enterprise activities shall not limit access 
  4.3   to services by vulnerable populations served by state-operated 
  4.4   services. 
  4.5      Implementation will include consultation with stakeholders 
  4.6   including county boards, county social service agencies, 
  4.7   consumers, families, advocates, local mental health advisory 
  4.8   councils, local private and public providers, representatives of 
  4.9   state public employee bargaining units, and other affected state 
  4.10  and local agencies.  All enterprise activities must conform with 
  4.11  collective bargaining agreements negotiated on behalf of 
  4.12  employees by their exclusive representatives.  Implementation 
  4.13  shall include consideration of: 
  4.14     (1) creating public or private partnerships to facilitate 
  4.15  client access to needed services; 
  4.16     (2) administrative simplification and efficiencies 
  4.17  throughout the state-operated services system; 
  4.18     (3) creating a public group practice for state-operated 
  4.19  medical staff to increase flexibility in meeting client needs 
  4.20  and maximize third-party reimbursement; 
  4.21     (4) converting or disposing of buildings not utilized and 
  4.22  surplus land; and 
  4.23     (5) exploring the efficiencies and benefits of establishing 
  4.24  state-operated services as an independent state agency. 
  4.25     The commissioner of human services shall submit a report to 
  4.26  the legislature each January throughout a six-year 
  4.27  implementation period. 
  4.28     Sec. 4.  Minnesota Statutes 1998, section 246.18, 
  4.29  subdivision 6, is amended to read: 
  4.30     Subd. 6.  [COLLECTIONS DEDICATED.] ~~Except for~~ 
  4.31  ~~state-operated programs and services funded through a direct~~ 
  4.32  ~~appropriation from the legislature, money received within the~~ 
  4.33  ~~regional treatment center system for the following~~ 
  4.34  ~~state-operated services is dedicated to the commissioner for the~~ 
  4.35  ~~provision of those services:~~ 
  4.36     ~~(1) community-based residential and day training and~~ 
  5.1   ~~habilitation services for mentally retarded persons;~~ 
  5.2      ~~(2) community health clinic services;~~ 
  5.3      ~~(3) accredited hospital outpatient department services;~~ 
  5.4      ~~(4) certified rehabilitation agency and rehabilitation~~ 
  5.5   ~~hospital services; or~~ 
  5.6      ~~(5) community-based transitional support services for~~ 
  5.7   ~~adults with serious and persistent mental illness.~~  Except for 
  5.8   state-operated programs funded through a direct appropriation 
  5.9   from the legislature, any state-operated program or service 
  5.10  established and operated as an enterprise activity, shall retain 
  5.11  the revenues earned in an interest-bearing account. 
  5.12     When the commissioner determines the intent to transition 
  5.13  from a direct appropriation to enterprise activity, all 
  5.14  collections for the targeted state-operated service shall be 
  5.15  retained and deposited into an interest-bearing account.  At the 
  5.16  end of the fiscal year, prior to establishing the enterprise 
  5.17  activity, collections up to the amount of the appropriation for 
  5.18  the targeted service shall be deposited to the general fund.  
  5.19  All funds in excess of the amount of the appropriation will be 
  5.20  retained and used by the enterprise activity for cash flow 
  5.21  purposes. 
  5.22     These funds must be deposited in the state treasury in a 
  5.23  revolving account and funds in the revolving account are 
  5.24  appropriated to the commissioner to operate the services 
  5.25  authorized, and any unexpended balances do not cancel but are 
  5.26  available until spent. 
  5.27     Sec. 5.  Minnesota Statutes 1998, section 253B.045, is 
  5.28  amended by adding a subdivision to read: 
  5.29     Subd. 5.  [HEALTH PLAN COMPANY; DEFINITION.] For purposes 
  5.30  of this section, "health plan company" has the meaning given it 
  5.31  in section 62Q.01, subdivision 4, and also includes a 
  5.32  demonstration provider as defined in section 256B.69, 
  5.33  subdivision 2, paragraph (b), a county or group of counties 
  5.34  participating in county-based purchasing according to section 
  5.35  256B.692, and a children's mental health collaborative under 
  5.36  contract to provide medical assistance for individuals enrolled 
  6.1   in the prepaid medical assistance and MinnesotaCare programs 
  6.2   according to sections 245.493 to 245.496. 
  6.3      Sec. 6.  Minnesota Statutes 1998, section 253B.045, is 
  6.4   amended by adding a subdivision to read: 
  6.5      Subd. 6.  [COVERAGE.] A health plan company must provide 
  6.6   coverage, according to the terms of the policy, contract, or 
  6.7   certificate of coverage, for all medically necessary covered 
  6.8   services as determined by the health plan company provided to an 
  6.9   enrollee that are ordered by the court under this chapter. 
  6.10     Sec. 7.  Minnesota Statutes 1998, section 253B.07, 
  6.11  subdivision 1, is amended to read: 
  6.12     Subdivision 1.  [PREPETITION SCREENING.] (a) Prior to 
  6.13  filing a petition for commitment of or early intervention for a 
  6.14  proposed patient, an interested person shall apply to the 
  6.15  designated agency in the county of the proposed patient's 
  6.16  residence or presence for conduct of a preliminary 
  6.17  investigation, except when the proposed patient has been 
  6.18  acquitted of a crime under section 611.026 and the county 
  6.19  attorney is required to file a petition for commitment.  The 
  6.20  designated agency shall appoint a screening team to conduct an 
  6.21  investigation which shall include:  
  6.22     (i) a personal interview with the proposed patient and 
  6.23  other individuals who appear to have knowledge of the condition 
  6.24  of the proposed patient.  If the proposed patient is not 
  6.25  interviewed, reasons must be documented; 
  6.26     (ii) identification and investigation of specific alleged 
  6.27  conduct which is the basis for application; 
  6.28     (iii) identification, exploration, and listing of the 
  6.29  reasons for rejecting or recommending alternatives to 
  6.30  involuntary placement; and 
  6.31     (iv) in the case of a commitment based on mental illness, 
  6.32  the following information, if it is known or available:  
  6.33  information that may be relevant to the administration of 
  6.34  neuroleptic medications, if necessary, including the existence 
  6.35  of a declaration under section 253B.03, subdivision 6d, or a 
  6.36  health care directive under chapter 145C or a guardian, 
  7.1   conservator, proxy, or agent with authority to make health care 
  7.2   decisions for the proposed patient; information regarding the 
  7.3   capacity of the proposed patient to make decisions regarding 
  7.4   administration of neuroleptic medication; and whether the 
  7.5   proposed patient is likely to consent or refuse consent to 
  7.6   administration of the medication. 
  7.7      The local agency shall seek input from the health plan 
  7.8   company in providing the court information about services the 
  7.9   enrollee needs and the "least restrictive alternatives." 
  7.10     (b) In conducting the investigation required by this 
  7.11  subdivision, the screening team shall have access to all 
  7.12  relevant medical records of proposed patients currently in 
  7.13  treatment facilities.  Data collected pursuant to this clause 
  7.14  shall be considered private data on individuals.  The 
  7.15  prepetition screening report is not admissible in any court 
  7.16  proceedings unrelated to the commitment proceedings. 
  7.17     (c) When the prepetition screening team recommends 
  7.18  commitment, a written report shall be sent to the county 
  7.19  attorney for the county in which the petition is to be filed. 
  7.20     (d) The prepetition screening team shall refuse to support 
  7.21  a petition if the investigation does not disclose evidence 
  7.22  sufficient to support commitment.  Notice of the prepetition 
  7.23  screening team's decision shall be provided to the prospective 
  7.24  petitioner.  
  7.25     (e) If the interested person wishes to proceed with a 
  7.26  petition contrary to the recommendation of the prepetition 
  7.27  screening team, application may be made directly to the county 
  7.28  attorney, who may determine whether or not to proceed with the 
  7.29  petition.  Notice of the county attorney's determination shall 
  7.30  be provided to the interested party.  
  7.31     (f) If the proposed patient has been acquitted of a crime 
  7.32  under section 611.026, the county attorney shall apply to the 
  7.33  designated county agency in the county in which the acquittal 
  7.34  took place for a preliminary investigation unless substantially 
  7.35  the same information relevant to the proposed patient's current 
  7.36  mental condition, as could be obtained by a preliminary 
  8.1   investigation, is part of the court record in the criminal 
  8.2   proceeding or is contained in the report of a mental examination 
  8.3   conducted in connection with the criminal proceeding.  If a 
  8.4   court petitions for commitment pursuant to the rules of criminal 
  8.5   or juvenile procedure or a county attorney petitions pursuant to 
  8.6   acquittal of a criminal charge under section 611.026, the 
  8.7   prepetition investigation, if required by this section, shall be 
  8.8   completed within seven days after the filing of the petition.  
  8.9      Sec. 8.  Minnesota Statutes 1998, section 253B.185, is 
  8.10  amended by adding a subdivision to read: 
  8.11     Subd. 5.  [AFTERCARE AND CASE MANAGEMENT.] The state, in 
  8.12  collaboration with the designated agency, is responsible for 
  8.13  arranging and funding the aftercare and case management services 
  8.14  for persons under commitment as sexual psychopathic 
  8.15  personalities and sexually dangerous persons discharged after 
  8.16  July 1, 1999. 
  8.17     Sec. 9.  Minnesota Statutes 1998, section 254B.01, is 
  8.18  amended by adding a subdivision to read: 
  8.19     Subd. 7.  [ROOM AND BOARD RATE.] "Room and board rate" 
  8.20  means a rate set for shelter, fuel, food, utilities, household 
  8.21  supplies, and other costs necessary to provide room and board 
  8.22  for a person in need of chemical dependency services. 
  8.23     Sec. 10.  Minnesota Statutes 1998, section 254B.02, 
  8.24  subdivision 3, is amended to read: 
  8.25     Subd. 3.  [RESERVE ACCOUNT.] The commissioner shall 
  8.26  allocate money from the reserve account to counties that, during 
  8.27  the current fiscal year, have met or exceeded the base level of 
  8.28  expenditures for eligible chemical dependency services from 
  8.29  local money.  The commissioner shall establish the base level 
  8.30  for fiscal year 1988 as the amount of local money used for 
  8.31  eligible services in calendar year 1986.  In later years, the 
  8.32  base level must be increased in the same proportion as state 
  8.33  appropriations to implement Laws 1986, chapter 394, sections 8 
  8.34  to 20, are increased.  The base level must be decreased if the 
  8.35  fund balance from which allocations are made under section 
  8.36  254B.02, subdivision 1, is decreased in later years.  The local 
  9.1   match rate for the reserve account is the same rate as applied 
  9.2   to the initial allocation.  Reserve account payments must not be 
  9.3   included when calculating the county adjustments made according 
  9.4   to subdivision 2.  For counties providing medical assistance or 
  9.5   general assistance medical care through managed care plans on 
  9.6   January 1, 1996, the base year is fiscal year 1995.  For 
  9.7   counties beginning provision of managed care after January 1, 
  9.8   1996, the base year is the most recent fiscal year before 
  9.9   enrollment in managed care begins.  For counties providing 
  9.10  managed care, the base level will be increased or decreased in 
  9.11  proportion to changes in the fund balance from which allocations 
  9.12  are made under subdivision 2, but will be additionally increased 
  9.13  or decreased in proportion to the change in county adjusted 
  9.14  population made in subdivision 1, paragraphs (b) and 
  9.15  (c).  Effective July 1, 1999, any funds deposited in the reserve 
  9.16  account funds in excess of those needed to meet obligations 
  9.17  incurred under this section and sections 254B.06 and 254B.09 
  9.18  shall cancel to the general fund. 
  9.19     Sec. 11.  Minnesota Statutes 1998, section 254B.03, 
  9.20  subdivision 2, is amended to read: 
  9.21     Subd. 2.  [CHEMICAL DEPENDENCY ~~SERVICES~~ FUND PAYMENT.] (a) 
  9.22  Payment from the chemical dependency fund is limited to payments 
  9.23  for services other than detoxification that, if located outside 
  9.24  of federally recognized tribal lands, would be required to be 
  9.25  licensed by the commissioner as a chemical dependency treatment 
  9.26  or rehabilitation program under sections 245A.01 to 245A.16, and 
  9.27  services other than detoxification provided in another state 
  9.28  that would be required to be licensed as a chemical dependency 
  9.29  program if the program were in the state.  Out of state vendors 
  9.30  must also provide the commissioner with assurances that the 
  9.31  program complies substantially with state licensing requirements 
  9.32  and possesses all licenses and certifications required by the 
  9.33  host state to provide chemical dependency treatment.  ~~Hospitals~~ 
  9.34  ~~may apply for and receive licenses to be eligible vendors,~~ 
  9.35  ~~notwithstanding the provisions of section 245A.03.~~  Except for 
  9.36  chemical dependency transitional rehabilitation programs, 
 10.1   vendors receiving payments from the chemical dependency fund 
 10.2   must not require copayment from a recipient of benefits for 
 10.3   services provided under this subdivision.  Payment from the 
 10.4   chemical dependency fund shall be made for necessary room and 
 10.5   board costs provided by vendors certified according to section 
 10.6   254B.05, or in a community hospital licensed by the commissioner 
 10.7   of the department of health according to sections 144.50 to 
 10.8   144.56 to a client who is: 
 10.9      (1) determined to meet the criteria for placement in a 
 10.10  residential chemical dependency treatment program according to 
 10.11  rules adopted under section 254A.03, subdivision 3; and 
 10.12     (2) concurrently receiving a chemical dependency treatment 
 10.13  service in a program licensed by the commissioner and reimbursed 
 10.14  by the chemical dependency fund. 
 10.15     (b) A county may, from its own resources, provide chemical 
 10.16  dependency services for which state payments are not made.  A 
 10.17  county may elect to use the same invoice procedures and obtain 
 10.18  the same state payment services as are used for chemical 
 10.19  dependency services for which state payments are made under this 
 10.20  section if county payments are made to the state in advance of 
 10.21  state payments to vendors.  When a county uses the state system 
 10.22  for payment, the commissioner shall make monthly billings to the 
 10.23  county using the most recent available information to determine 
 10.24  the anticipated services for which payments will be made in the 
 10.25  coming month.  Adjustment of any overestimate or underestimate 
 10.26  based on actual expenditures shall be made by the state agency 
 10.27  by adjusting the estimate for any succeeding month. 
 10.28     (c) The commissioner shall coordinate chemical dependency 
 10.29  services and determine whether there is a need for any proposed 
 10.30  expansion of chemical dependency treatment services.  The 
 10.31  commissioner shall deny vendor certification to any provider 
 10.32  that has not received prior approval from the commissioner for 
 10.33  the creation of new programs or the expansion of existing 
 10.34  program capacity.  The commissioner shall consider the 
 10.35  provider's capacity to obtain clients from outside the state 
 10.36  based on plans, agreements, and previous utilization history, 
 11.1   when determining the need for new treatment services. 
 11.2      Sec. 12.  Minnesota Statutes 1998, section 254B.04, 
 11.3   subdivision 1, is amended to read: 
 11.4      Subdivision 1.  [ELIGIBILITY.] (a) Persons eligible for 
 11.5   benefits under Code of Federal Regulations, title 25, part 20, 
 11.6   persons eligible for medical assistance benefits under sections 
 11.7   256B.055, 256B.056, and 256B.057, subdivisions 1, 2, 5, and 6, 
 11.8   or who meet the income standards of section 256B.056, 
 11.9   subdivision 4, and persons eligible for general assistance 
 11.10  medical care under section 256D.03, subdivision 3, are entitled 
 11.11  to chemical dependency fund services.  State money appropriated 
 11.12  for this paragraph must be placed in a separate account 
 11.13  established for this purpose. 
 11.14     (b) A person not entitled to services under paragraph (a), 
 11.15  but with family income that is less than 60 percent of the state 
 11.16  median income for a family of like size and composition, shall 
 11.17  be eligible to receive chemical dependency fund services within 
 11.18  the limit of funds available after persons entitled to services 
 11.19  under paragraph (a) have been served.  A county may spend money 
 11.20  from its own sources to serve persons under this paragraph.  
 11.21  State money appropriated for this paragraph must be placed in a 
 11.22  separate account established for this purpose. 
 11.23     (c) Persons whose income is between 60 percent and 115 
 11.24  percent of the state median income shall be eligible for 
 11.25  chemical dependency services on a sliding fee basis, within the 
 11.26  limit of funds available, after persons entitled to services 
 11.27  under paragraph (a) and persons eligible for services under 
 11.28  paragraph (b) have been served.  Persons eligible under this 
 11.29  paragraph must contribute to the cost of services according to 
 11.30  the sliding fee scale established under subdivision 3.  A county 
 11.31  may spend money from its own sources to provide services to 
 11.32  persons under this paragraph.  State money appropriated for this 
 11.33  paragraph must be placed in a separate account established for 
 11.34  this purpose. 
 11.35     Sec. 13.  Minnesota Statutes 1998, section 254B.05, 
 11.36  subdivision 1, is amended to read: 
 12.1      Subdivision 1.  [LICENSURE REQUIRED.] Programs licensed by 
 12.2   the commissioner are eligible vendors.  Hospitals may apply for 
 12.3   and receive licenses to be eligible vendors, notwithstanding the 
 12.4   provisions of section 245A.03.  American Indian programs located 
 12.5   on federally recognized tribal lands that provide chemical 
 12.6   dependency primary treatment, extended care, transitional 
 12.7   residence, or outpatient treatment services, and are licensed by 
 12.8   tribal government are eligible vendors.  Detoxification programs 
 12.9   are not eligible vendors.  Programs that are not licensed as a 
 12.10  chemical dependency residential or nonresidential treatment 
 12.11  program by the commissioner or by tribal government are not 
 12.12  eligible vendors.  To be eligible for payment under the 
 12.13  Consolidated Chemical Dependency Treatment Fund, a vendor of a 
 12.14  chemical dependency service must participate in the Drug and 
 12.15  Alcohol Abuse Normative Evaluation System and the treatment 
 12.16  accountability plan. 
 12.17     Effective January 1, 2000, vendors of room and board are 
 12.18  eligible for chemical dependency fund payment if the vendor:  
 12.19     (1) is certified by the county or tribal governing body as 
 12.20  having rules prohibiting residents bringing chemicals into the 
 12.21  facility or using chemicals while residing in the facility and 
 12.22  provide consequences for infractions of those rules; 
 12.23     (2) has a current contract with a county or tribal 
 12.24  governing body; 
 12.25     (3) is determined to meet applicable health and safety 
 12.26  requirements; 
 12.27     (4) is not a jail or prison; and 
 12.28     (5) is not concurrently receiving funds under chapter 256I 
 12.29  for the recipient. 
 12.30     Sec. 14.  Minnesota Statutes 1998, section 256.01, 
 12.31  subdivision 6, is amended to read: 
 12.32     Subd. 6.  [ADVISORY TASK FORCES.] The commissioner may 
 12.33  appoint advisory task forces to provide consultation on any of 
 12.34  the programs under the commissioner's administration and 
 12.35  supervision.  A task force shall expire and the compensation, 
 12.36  terms of office and removal of members shall be as provided in 
 13.1   section 15.059.  Notwithstanding section 15.059, the 
 13.2   commissioner may pay a per diem of $35 to consumers and family 
 13.3   members whose participation is needed in legislatively 
 13.4   authorized state-level task forces, and whose participation on 
 13.5   the task force is not as a paid representative of any agency, 
 13.6   organization, or association. 
 13.7      Sec. 15.  Laws 1995, chapter 207, article 8, section 41, as 
 13.8   amended by Laws 1997, chapter 203, article 7, section 25, is 
 13.9   amended to read: 
 13.10     Sec. 41.  [245.4661] [~~PILOT PROJECTS~~ INITIATIVES TO 
 13.11  ~~TEST~~ PROVIDE ALTERNATIVES TO DELIVERY OF ADULT MENTAL HEALTH 
 13.12  SERVICES.] 
 13.13     Subdivision 1.  [AUTHORIZATION FOR ~~PILOT PROJECTS~~ ADULT 
 13.14  MENTAL HEALTH INITIATIVES.] The commissioner of human services 
 13.15  may approve ~~pilot projects~~ adult mental health initiatives to 
 13.16  ~~test~~ provide alternatives to or ~~the enhanced~~ enhance 
 13.17  coordination of the delivery of mental health services required 
 13.18  under the Minnesota Comprehensive Adult Mental Health Act, 
 13.19  Minnesota Statutes, sections 245.461 to 245.486. 
 13.20     Subd. 2.  [PROGRAM DESIGN AND IMPLEMENTATION.] (a) The 
 13.21  ~~pilot projects~~ adult mental health initiatives shall be 
 13.22  established to design, plan, and improve the mental health 
 13.23  service delivery system for adults with serious and persistent 
 13.24  mental illness that would: 
 13.25     (1) provide an expanded array of services from which 
 13.26  clients can choose services appropriate to their needs; 
 13.27     (2) be based on purchasing strategies that improve access 
 13.28  and coordinate services without cost shifting; 
 13.29     (3) incorporate existing state facilities and resources 
 13.30  into the community mental health infrastructure through creative 
 13.31  partnerships with local vendors; and 
 13.32     (4) utilize existing categorical funding streams and 
 13.33  reimbursement sources in combined and creative ways, except 
 13.34  appropriations to regional treatment centers and all funds that 
 13.35  are attributable to the operation of state-operated services are 
 13.36  excluded unless appropriated specifically by the legislature for 
 14.1   a purpose consistent with this section. 
 14.2      (b) All ~~projects~~ initiatives funded by January 1, 1997, 
 14.3   must complete the planning phase and be operational by June 30, 
 14.4   1997; all projects funded by January 1, 1998, must be 
 14.5   operational by June 30, 1998.  
 14.6      Subd. 3.  [PROGRAM EVALUATION.] Evaluation of each ~~project~~ 
 14.7   initiative will be based on outcome evaluation criteria 
 14.8   negotiated with each project prior to implementation. 
 14.9      Subd. 4.  [NOTICE OF PROJECT DISCONTINUATION.] Each ~~project~~ 
 14.10  initiative may be discontinued for any reason by the ~~project's~~ 
 14.11  initiative's managing entity or the commissioner of human 
 14.12  services, after 90 days' written notice to the other party. 
 14.13     Subd. 5.  [PLANNING FOR ~~PILOT PROJECTS~~ ADULT MENTAL HEALTH 
 14.14  INITIATIVES.] Each local plan for ~~a pilot project~~ an initiative 
 14.15  must be developed under the direction of the county board, or 
 14.16  multiple county boards acting jointly, as the local mental 
 14.17  health authority.  The planning process for each 
 14.18  ~~pilot~~ initiative shall include, but not be limited to, mental 
 14.19  health consumers, families, advocates, local mental health 
 14.20  advisory councils, local and state providers, representatives of 
 14.21  state and local public employee bargaining units, and the 
 14.22  department of human services.  As part of the planning process, 
 14.23  the county board or boards shall designate a managing entity 
 14.24  responsible for receipt of funds and management of the ~~pilot~~ 
 14.25  ~~project~~ initiative. 
 14.26     Subd. 6.  [DUTIES OF COMMISSIONER.] (a) For purposes of the 
 14.27  ~~pilot projects~~ adult mental health initiatives, the commissioner 
 14.28  shall facilitate integration of funds or other resources as 
 14.29  needed and requested by each ~~project~~ initiative.  These 
 14.30  resources may include: 
 14.31     (1) residential services funds administered under Minnesota 
 14.32  Rules, parts 9535.2000 to 9535.3000, in an amount to be 
 14.33  determined by mutual agreement between the ~~project's~~ 
 14.34  initiative's managing entity and the commissioner of human 
 14.35  services after an examination of the county's historical 
 14.36  utilization of facilities located both within and outside of the 
 15.1   county and licensed under Minnesota Rules, parts 9520.0500 to 
 15.2   9520.0690; 
 15.3      (2) community support services funds administered under 
 15.4   Minnesota Rules, parts 9535.1700 to 9535.1760; 
 15.5      (3) other mental health special project funds; 
 15.6      (4) medical assistance, general assistance medical care, 
 15.7   MinnesotaCare and group residential housing if requested by the 
 15.8   ~~project's~~ initiative's managing entity, and if the commissioner 
 15.9   determines this would be consistent with the state's overall 
 15.10  health care reform efforts; and 
 15.11     (5) regional treatment center nonfiscal resources to the 
 15.12  extent agreed to by the ~~project's~~ initiative's managing entity 
 15.13  and the regional treatment center. 
 15.14     (b) The commissioner shall consider the following criteria 
 15.15  in awarding start-up and implementation grants for the ~~pilot~~ 
 15.16  ~~projects~~ adult mental health initiatives: 
 15.17     (1) the ability of the proposed ~~projects~~ initiatives to 
 15.18  accomplish the objectives described in subdivision 2; 
 15.19     (2) the size of the target population to be served; and 
 15.20     (3) geographical distribution. 
 15.21     (c) ~~The commissioner shall review overall status of the~~ 
 15.22  ~~projects initiatives at least every two years and recommend any~~ 
 15.23  ~~legislative changes needed by January 15 of each odd-numbered~~ 
 15.24  ~~year.~~ 
 15.25     ~~(d)~~ The commissioner may waive administrative rule 
 15.26  requirements which are incompatible with the implementation of 
 15.27  the ~~pilot project~~ adult mental health initiatives. 
 15.28     ~~(e)~~ (d) The commissioner may exempt the participating 
 15.29  counties from fiscal sanctions for noncompliance with 
 15.30  requirements in laws and rules which are incompatible with the 
 15.31  implementation of the ~~pilot project~~ adult mental health 
 15.32  initiative. 
 15.33     ~~(f)~~ (e) The commissioner may award grants to an entity 
 15.34  designated by a county board or group of county boards to pay 
 15.35  for start-up and implementation costs of the ~~pilot project~~ adult 
 15.36  mental health initiative. 
 16.1      Subd. 7.  [DUTIES OF COUNTY BOARD.] The county board, or 
 16.2   other entity which is approved to administer ~~a pilot project~~ an 
 16.3   adult mental health initiative, shall: 
 16.4      (1) administer the project in a manner which is consistent 
 16.5   with the objectives described in subdivision 2 and the planning 
 16.6   process described in subdivision 5; 
 16.7      (2) assure that no one is denied services for which they 
 16.8   would otherwise be eligible; and 
 16.9      (3) provide the commissioner of human services with timely 
 16.10  and pertinent information through the following methods: 
 16.11     (i) submission of community social services act plans and 
 16.12  plan amendments; 
 16.13     (ii) submission of social services expenditure and grant 
 16.14  reconciliation reports, based on a coding format to be 
 16.15  determined by mutual agreement between the ~~project's~~ 
 16.16  initiatives's managing entity and the commissioner; and 
 16.17     (iii) submission of data and participation in an evaluation 
 16.18  of the ~~pilot projects~~ adult mental health initiatives, to be 
 16.19  designed cooperatively by the commissioner and the ~~projects~~ 
 16.20  initiatives.