1.1                          A bill for an act 
  1.2             relating to human services; changing licensing 
  1.3             requirements and reconsideration for foster care; 
  1.4             assessing fines; adding provisions for drop-in child 
  1.5             care programs; changing a definition; adding 
  1.6             provisions for the Minnesota family preservation act; 
  1.7             amending Minnesota Statutes 1994, sections 245A.03, 
  1.8             subdivision 2a; 245A.04, subdivisions 3, 3b, 7, and 9; 
  1.9             245A.06, subdivisions 2, 4, and by adding a 
  1.10            subdivision; 245A.07, subdivision 3; 245A.14, 
  1.11            subdivision 6; 256.12, subdivision 14; 256.82, by 
  1.12            adding a subdivision; 256.8711; 256D.02, subdivision 
  1.13            5; 256F.01; 256F.02; 256F.03, subdivision 5, and by 
  1.14            adding a subdivision; 256F.04, subdivisions 1 and 2; 
  1.15            256F.05, subdivisions 2, 3, 4, 5, 7, 8, and by adding 
  1.16            a subdivision; 256F.06, subdivisions 1, 2, and 4; 
  1.17            257.3571, subdivision 1; 257.3572; and 257.3577, 
  1.18            subdivision 1; proposing coding for new law in 
  1.19            Minnesota Statutes, chapter 245A; repealing Minnesota 
  1.20            Statutes 1994, sections 256F.05, subdivisions 2a and 
  1.21            4a; and 256F.06, subdivision 3. 
  1.22  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.23     Section 1.  Minnesota Statutes 1994, section 245A.03, 
  1.24  subdivision 2a, is amended to read: 
  1.25     Subd. 2a.  [LICENSING OF FOSTER CARE BY AN INDIVIDUAL WHO 
  1.26  IS RELATED TO A CHILD; LICENSE REQUIRED.] Notwithstanding 
  1.27  subdivision 2, clause (1), the commissioner must license or 
  1.28  approve an individual who is related to a child in order to 
  1.29  provide foster care for that a child, an individual who is 
  1.30  related to the child, other than a grandparent, to the extent 
  1.31  permissible under federal law, parent, or legal guardian, must 
  1.32  be licensed by the commissioner except as provided by section 
  1.33  245A.035.  The commissioner may issue the license or approval 
  2.1   retroactive to the date the child was placed in the applicant's 
  2.2   home, so long as no more than 90 days have elapsed since the 
  2.3   placement.  If more than 90 days have elapsed since the 
  2.4   placement, the commissioner may issue the license or approval 
  2.5   retroactive 90 days.  The granting of a license or approval to 
  2.6   an individual who is related to a child shall be according to 
  2.7   standards set forth by foster care rule.  The commissioner shall 
  2.8   consider the importance of maintaining the child's relationship 
  2.9   to family as an additional significant factor in determining 
  2.10  whether to set aside a licensing disqualifier under section 
  2.11  245A.04, subdivision 3b, or to grant a variance of licensing 
  2.12  requirements under section 245A.04, subdivision 9, in licensing 
  2.13  or approving an individual related to a child. 
  2.14     Sec. 2.  [245A.035] [RELATIVE FOSTER CARE; EMERGENCY 
  2.15  LICENSE.] 
  2.16     Subdivision 1.  [GRANT OF EMERGENCY LICENSE.] 
  2.17  Notwithstanding section 245A.03, subdivision 2a, a county agency 
  2.18  may place a child for foster care with a relative who is not 
  2.19  licensed to provide foster care, provided the requirements of 
  2.20  subdivision 2 are met.  As used in this section, the term 
  2.21  "relative" has the meaning given it under section 260.181, 
  2.22  subdivision 3. 
  2.23     Subd. 2.  [COOPERATION WITH EMERGENCY LICENSING PROCESS.] 
  2.24  (a) A county agency that places a child with a relative who is 
  2.25  not licensed to provide foster care must begin the process of 
  2.26  securing an emergency license for the relative as soon as 
  2.27  possible and must conduct the initial inspection required by 
  2.28  subdivision 3, clause (1), whenever possible, prior to placing 
  2.29  the child in the relative's home, but no later than three 
  2.30  working days after placing the child in the home.  A child 
  2.31  placed in the home of a relative who is not licensed to provide 
  2.32  foster care must be removed from that home if the relative fails 
  2.33  to cooperate with the county agency in securing an emergency 
  2.34  foster care license.  The commissioner may only issue an 
  2.35  emergency foster care license to a relative with whom the county 
  2.36  agency wishes to place or has placed a child for foster care. 
  3.1      (b) If a child is to be placed in the home of a relative 
  3.2   not licensed to provide foster care, either the placing agency 
  3.3   or the county agency in the county in which the relative lives 
  3.4   shall conduct the emergency licensing process as required in 
  3.5   this section. 
  3.6      Subd. 3.  [REQUIREMENTS FOR EMERGENCY LICENSE.] Before an 
  3.7   emergency license may be issued, the following requirements must 
  3.8   be met: 
  3.9      (1) the county agency must conduct an initial inspection of 
  3.10  the premises where the foster care is to be provided to ensure 
  3.11  the health and safety of any child placed in the home.  The 
  3.12  county agency shall conduct the inspection using a form 
  3.13  developed by the commissioner; 
  3.14     (2) at the time of the inspection or placement, whichever 
  3.15  is earlier, the relative being considered for an emergency 
  3.16  license shall receive an application form for a child foster 
  3.17  care license; and 
  3.18     (3) whenever possible, prior to placing the child in the 
  3.19  relative's home, the relative being considered for an emergency 
  3.20  license shall provide the information required by section 
  3.21  245A.04, subdivision 3, paragraph (b). 
  3.22     Subd. 4.  [APPLICANT STUDY.] When the county agency has 
  3.23  received the information required by section 245A.04, 
  3.24  subdivision 3, paragraph (b), the county agency shall begin an 
  3.25  applicant study according to the procedures in section 245A.04, 
  3.26  subdivision 3.  The commissioner may issue an emergency license 
  3.27  upon recommendation of the county agency once the initial 
  3.28  inspection has been successfully completed and the information 
  3.29  necessary to begin the applicant background study has been 
  3.30  provided.  If the county agency does not recommend that the 
  3.31  emergency license be granted, the agency shall notify the 
  3.32  relative in writing that the agency is recommending denial to 
  3.33  the commissioner; shall remove any child who has been placed in 
  3.34  the home prior to licensure; and shall inform the relative in 
  3.35  writing of the procedure to request review pursuant to 
  3.36  subdivision 6.  An emergency license shall be effective until a 
  4.1   child foster care license is granted or denied, but shall in no 
  4.2   case remain in effect more than 90 days from the date of 
  4.3   placement. 
  4.4      Subd. 5.  [CHILD FOSTER CARE LICENSE APPLICATION.] The 
  4.5   emergency license holder shall complete the child foster care 
  4.6   license application and necessary paperwork within ten days of 
  4.7   the placement.  The county agency shall assist the emergency 
  4.8   license holder to complete the application.  The granting of a 
  4.9   child foster care license to a relative shall be under the 
  4.10  procedures in this chapter and according to the standards set 
  4.11  forth by foster care rule.  In licensing a relative, the 
  4.12  commissioner shall consider the importance of maintaining the 
  4.13  child's relationship with relatives as an additional significant 
  4.14  factor in determining whether to set aside a licensing 
  4.15  disqualifier under section 245A.04, subdivision 3b, or to grant 
  4.16  a variance of licensing requirements under section 245A.04, 
  4.17  subdivision 9. 
  4.18     Subd. 6.  [DENIAL OF EMERGENCY LICENSE.] If the 
  4.19  commissioner denies an application for an emergency foster care 
  4.20  license under this section, that denial must be in writing and 
  4.21  must include reasons for the denial.  Denial of an emergency 
  4.22  license is not subject to appeal under chapter 14.  The relative 
  4.23  may request a review of the denial by submitting to the 
  4.24  commissioner a written statement of the reasons an emergency 
  4.25  license should be granted.  The commissioner shall evaluate the 
  4.26  request for review and determine whether to grant the emergency 
  4.27  license.  Within 15 working days of the receipt of the request 
  4.28  for review, the commissioner shall notify the relative 
  4.29  requesting review in written form whether the emergency license 
  4.30  will be granted.  A child shall not be placed or remain placed 
  4.31  in the relative's home while the request for review is pending.  
  4.32  Denial of an emergency license shall not preclude an individual 
  4.33  from reapplying for an emergency license or from applying for a 
  4.34  child foster care license. 
  4.35     Sec. 3.  Minnesota Statutes 1994, section 245A.04, 
  4.36  subdivision 3, is amended to read: 
  5.1      Subd. 3.  [STUDY OF THE APPLICANT.] (a) Before the 
  5.2   commissioner issues a license, the commissioner shall conduct a 
  5.3   study of the individuals specified in clauses (1) to (4) 
  5.4   according to rules of the commissioner.  The applicant, license 
  5.5   holder, the bureau of criminal apprehension, and county 
  5.6   agencies, after written notice to the individual who is the 
  5.7   subject of the study, shall help with the study by giving the 
  5.8   commissioner criminal conviction data and reports about abuse or 
  5.9   neglect of adults in licensed programs substantiated under 
  5.10  section 626.557 and the maltreatment of minors in licensed 
  5.11  programs substantiated under section 626.556.  The individuals 
  5.12  to be studied shall include: 
  5.13     (1) the applicant; 
  5.14     (2) persons over the age of 13 living in the household 
  5.15  where the licensed program will be provided; 
  5.16     (3) current employees or contractors of the applicant who 
  5.17  will have direct contact with persons served by the program; and 
  5.18     (4) volunteers who have direct contact with persons served 
  5.19  by the program to provide program services, if the contact is 
  5.20  not directly supervised by the individuals listed in clause (1) 
  5.21  or (3). 
  5.22     The juvenile courts shall also help with the study by 
  5.23  giving the commissioner existing juvenile court records on 
  5.24  individuals described in clause (2) relating to delinquency 
  5.25  proceedings held within either the five years immediately 
  5.26  preceding the application or the five years immediately 
  5.27  preceding the individual's 18th birthday, whichever time period 
  5.28  is longer.  The commissioner shall destroy juvenile records 
  5.29  obtained pursuant to this subdivision when the subject of the 
  5.30  records reaches age 23.  
  5.31     For purposes of this section and Minnesota Rules, part 
  5.32  9543.3070, a finding that a delinquency petition is proven in 
  5.33  juvenile court shall be considered a conviction in state 
  5.34  district court. 
  5.35     For purposes of this subdivision, "direct contact" means 
  5.36  providing face-to-face care, training, supervision, counseling, 
  6.1   consultation, or medication assistance to persons served by a 
  6.2   program.  For purposes of this subdivision, "directly supervised"
  6.3   means an individual listed in clause (1) or (3) is within sight 
  6.4   or hearing of a volunteer to the extent that the individual 
  6.5   listed in clause (1) or (3) is capable at all times of 
  6.6   intervening to protect the health and safety of the persons 
  6.7   served by the program who have direct contact with the volunteer.
  6.8      A study of an individual in clauses (1) to (4) shall be 
  6.9   conducted at least upon application for initial license and 
  6.10  reapplication for a license.  No applicant, license holder, or 
  6.11  individual who is the subject of the study shall pay any fees 
  6.12  required to conduct the study.  
  6.13     (b) The individual who is the subject of the study must 
  6.14  provide the applicant or license holder with sufficient 
  6.15  information to ensure an accurate study including the 
  6.16  individual's first, middle, and last name; home address, city, 
  6.17  county, and state of residence; zip code; sex; date of birth; 
  6.18  and driver's license number.  The applicant or license holder 
  6.19  shall provide this information about an individual in paragraph 
  6.20  (a), clauses (1) to (4), on forms prescribed by the 
  6.21  commissioner.  The commissioner may request additional 
  6.22  information of the individual, which shall be optional for the 
  6.23  individual to provide, such as the individual's social security 
  6.24  number or race. 
  6.25     (c) Except for child foster care, adult foster care, and 
  6.26  family day care homes, a study must include information from the 
  6.27  county agency's record of substantiated abuse or neglect of 
  6.28  adults in licensed programs, and the maltreatment of minors in 
  6.29  licensed programs, information from juvenile courts as required 
  6.30  in paragraph (a) for persons listed in paragraph (a), clause 
  6.31  (2), and information from the bureau of criminal apprehension.  
  6.32  For child foster care, adult foster care, and family day care 
  6.33  homes, the study must include information from the county 
  6.34  agency's record of substantiated abuse or neglect of adults, and 
  6.35  the maltreatment of minors, information from juvenile courts as 
  6.36  required in paragraph (a) for persons listed in paragraph (a), 
  7.1   clause (2), and information from the bureau of criminal 
  7.2   apprehension.  The commissioner may also review arrest and 
  7.3   investigative information from the bureau of criminal 
  7.4   apprehension, a county attorney, county sheriff, county agency, 
  7.5   local chief of police, other states, the courts, or a national 
  7.6   criminal record repository if the commissioner has reasonable 
  7.7   cause to believe the information is pertinent to the 
  7.8   disqualification of an individual listed in paragraph (a), 
  7.9   clauses (1) to (4). 
  7.10     (d) An applicant's or license holder's failure or refusal 
  7.11  to cooperate with the commissioner is reasonable cause to deny 
  7.12  an application or immediately suspend, suspend, or revoke a 
  7.13  license.  Failure or refusal of an individual to cooperate with 
  7.14  the study is just cause for denying or terminating employment of 
  7.15  the individual if the individual's failure or refusal to 
  7.16  cooperate could cause the applicant's application to be denied 
  7.17  or the license holder's license to be immediately suspended, 
  7.18  suspended, or revoked. 
  7.19     (e) The commissioner shall not consider an application to 
  7.20  be complete until all of the information required to be provided 
  7.21  under this subdivision has been received.  
  7.22     (f) No person in paragraph (a), clause (1), (2), (3), or 
  7.23  (4) who is disqualified as a result of this section may be 
  7.24  retained by the agency in a position involving direct contact 
  7.25  with persons served by the program. 
  7.26     (g) Termination of persons in paragraph (a), clause (1), 
  7.27  (2), (3), or (4) made in good faith reliance on a notice of 
  7.28  disqualification provided by the commissioner shall not subject 
  7.29  the applicant or license holder to civil liability. 
  7.30     (h) The commissioner may establish records to fulfill the 
  7.31  requirements of this section. 
  7.32     (i) The commissioner may not disqualify an individual 
  7.33  subject to a study under this section because that person has, 
  7.34  or has had, a mental illness as defined in section 245.462, 
  7.35  subdivision 20. 
  7.36     (j) An individual who is subject to an applicant background 
  8.1   study under this section and whose disqualification in 
  8.2   connection with a license would be subject to the limitations on 
  8.3   reconsideration set forth in subdivision 3b, paragraph (c), 
  8.4   shall be disqualified for conviction of the crimes specified in 
  8.5   the manner specified in subdivision 3b, paragraph (c).  The 
  8.6   commissioner of human services shall amend Minnesota Rules, part 
  8.7   9543.3070, to conform to this section. 
  8.8      Sec. 4.  Minnesota Statutes 1994, section 245A.04, 
  8.9   subdivision 3b, is amended to read: 
  8.10     Subd. 3b.  [RECONSIDERATION OF DISQUALIFICATION.] (a) 
  8.11  Within 30 days after receiving notice of disqualification under 
  8.12  subdivision 3a, the individual who is the subject of the study 
  8.13  may request reconsideration of the notice of disqualification.  
  8.14  The individual must submit the request for reconsideration to 
  8.15  the commissioner in writing.  The individual must present 
  8.16  information to show that: 
  8.17     (1) the information the commissioner relied upon is 
  8.18  incorrect; or 
  8.19     (2) the subject of the study does not pose a risk of harm 
  8.20  to any person served by the applicant or license holder. 
  8.21     (b) The commissioner may set aside the disqualification if 
  8.22  the commissioner finds that the information the commissioner 
  8.23  relied upon is incorrect or the individual does not pose a risk 
  8.24  of harm to any person served by the applicant or license 
  8.25  holder.  The commissioner shall review the consequences of the 
  8.26  event or events that could lead to disqualification, whether 
  8.27  there is more than one disqualifying event, the vulnerability of 
  8.28  the victim at the time of the event, the time elapsed without a 
  8.29  repeat of the same or similar event, and documentation of 
  8.30  successful completion by the individual studied of training or 
  8.31  rehabilitation pertinent to the event.  In reviewing a 
  8.32  disqualification, the commissioner shall give preeminent weight 
  8.33  to the safety of each person to be served by the license holder 
  8.34  or applicant over the interests of the license holder or 
  8.35  applicant.  
  8.36     (c) Unless the information the commissioner relied on in 
  9.1   disqualifying an individual is incorrect, the commissioner may 
  9.2   not set aside the disqualification of an individual in 
  9.3   connection with a license to provide family day care for 
  9.4   children, foster care for children in the provider's own home, 
  9.5   or foster care or day care services for adults in the provider's 
  9.6   own home if: 
  9.7      (1) less than ten years have passed since the discharge of 
  9.8   the sentence imposed for the offense; and the individual has 
  9.9   been convicted of a violation of any offense listed in section 
  9.10  609.20 (manslaughter in the first degree), 609.205 (manslaughter 
  9.11  in the second degree), 609.21 (criminal vehicular homicide), 
  9.12  609.215 (aiding suicide or aiding attempted suicide), 609.221 to 
  9.13  609.2231 (felony violations of assault in the first, second, 
  9.14  third, or fourth degree), 609.713 (terroristic threats), 609.235 
  9.15  (use of drugs to injure or to facilitate crime), 609.24 (simple 
  9.16  robbery), 609.245 (aggravated robbery), 609.25 (kidnapping), 
  9.17  609.255 (false imprisonment), 609.561 or 609.562 (arson in the 
  9.18  first or second degree), 609.71 (riot), 609.582 (burglary in the 
  9.19  first or second degree), 609.66 (reckless use of a gun or 
  9.20  dangerous weapon or intentionally pointing a gun at or towards a 
  9.21  human being), 609.665 (setting a spring gun), 609.67 (unlawfully 
  9.22  owning, possessing, or operating a machine gun), 609.749 
  9.23  (stalking), 152.021 or 152.022 (controlled substance crime in 
  9.24  the first or second degree), 152.023, subdivision 1, clause (3) 
  9.25  or (4), or subdivision 2, clause (4) (controlled substance crime 
  9.26  in the third degree), 152.024, subdivision 1, clause (2), (3), 
  9.27  or (4) (controlled substance crime in the fourth degree), 
  9.28  609.228 (great bodily harm caused by distribution of drugs), 
  9.29  609.23 (mistreatment of persons confined), 609.231 (mistreatment 
  9.30  of residents or patients), 609.265 (abduction), 609.2664 to 
  9.31  609.2665 (manslaughter of an unborn child in the first or second 
  9.32  degree), 609.267 to 609.2672 (assault of an unborn child in the 
  9.33  first, second, or third degree), 609.268 (injury or death of an 
  9.34  unborn child in the commission of a crime), 617.293 
  9.35  (disseminating or displaying harmful material to minors), 
  9.36  609.378 (neglect or endangerment of a child), 609.377 (a gross 
 10.1   misdemeanor offense of malicious punishment of a child); or an 
 10.2   attempt or conspiracy to commit any of these offenses, as each 
 10.3   of these offenses is defined in Minnesota Statutes; or an 
 10.4   offense in any other state, the elements of which are 
 10.5   substantially similar to the elements of any of the foregoing 
 10.6   offenses; 
 10.7      (2) regardless of how much time has passed since the 
 10.8   discharge of the sentence imposed for the offense, the 
 10.9   individual was convicted of a violation of any offense listed in 
 10.10  sections 609.185 to 609.195 (murder in the first, second, or 
 10.11  third degree), 609.2661 to 609.2663 (murder of an unborn child 
 10.12  in the first, second, or third degree), 609.377 (a felony 
 10.13  offense of malicious punishment of a child), 609.322 
 10.14  (soliciting, inducement, or promotion of prostitution), 609.323 
 10.15  (receiving profit derived from prostitution), 609.342 to 609.345 
 10.16  (criminal sexual conduct in the first, second, third, or fourth 
 10.17  degree), 609.352 (solicitation of children to engage in sexual 
 10.18  conduct), 617.246 (use of minors in a sexual performance), 
 10.19  617.247 (possession of pictorial representations of a minor), 
 10.20  609.365 (incest), or an attempt or conspiracy to commit any of 
 10.21  these offenses as defined in Minnesota Statutes, or an offense 
 10.22  in any other state, the elements of which are substantially 
 10.23  similar to any of the foregoing offenses; 
 10.24     (3) within the seven years preceding the study, the 
 10.25  individual committed an act that constitutes maltreatment of a 
 10.26  child under section 626.556, subdivision 10e, and that resulted 
 10.27  in substantial bodily harm as defined in section 609.02, 
 10.28  subdivision 7a, or substantial mental or emotional harm as 
 10.29  supported by competent psychological or psychiatric evidence; or 
 10.30     (4) within the seven years preceding the study, the 
 10.31  individual was determined under section 626.557 to be the 
 10.32  perpetrator of a substantiated incident of abuse of a vulnerable 
 10.33  adult that resulted in substantial bodily harm as defined in 
 10.34  section 609.02, subdivision 7a, or substantial mental or 
 10.35  emotional harm as supported by competent psychological or 
 10.36  psychiatric evidence. 
 11.1      In the case of any ground for disqualification under 
 11.2   clauses (1) to (4), if the act was committed by an individual 
 11.3   other than the applicant or license holder residing in the 
 11.4   applicant's or license holder's home, the applicant or license 
 11.5   holder may seek reconsideration when the individual who 
 11.6   committed the act no longer resides in the home.  
 11.7      The disqualification periods provided under clauses (1), 
 11.8   (3), and (4) are the minimum applicable disqualification 
 11.9   periods.  The commissioner may determine that an individual 
 11.10  should continue to be disqualified from licensure because the 
 11.11  license holder or applicant poses a risk of harm to a person 
 11.12  served by that individual after the minimum disqualification 
 11.13  period has passed. 
 11.14     (d) The commissioner shall respond in writing to all 
 11.15  reconsideration requests within 15 working days after receiving 
 11.16  the request for reconsideration.  If the disqualification is set 
 11.17  aside, the commissioner shall notify the applicant or license 
 11.18  holder in writing of the decision. 
 11.19     (e) Except as provided in subdivision 3c, the 
 11.20  commissioner's decision to disqualify an individual, including 
 11.21  the decision to grant or deny a reconsideration of 
 11.22  disqualification under this subdivision, or to set aside or 
 11.23  uphold the results of the study under subdivision 3, is the 
 11.24  final administrative agency action and shall not be subject to 
 11.25  further review in a contested case under chapter 14 involving a 
 11.26  negative licensing action taken in response to the 
 11.27  disqualification. 
 11.28     Sec. 5.  Minnesota Statutes 1994, section 245A.04, 
 11.29  subdivision 7, is amended to read: 
 11.30     Subd. 7.  [ISSUANCE OF A LICENSE; PROVISIONAL LICENSE.] (a) 
 11.31  If the commissioner determines that the program complies with 
 11.32  all applicable rules and laws, the commissioner shall issue a 
 11.33  license.  At minimum, the license shall state:  
 11.34     (1) the name of the license holder; 
 11.35     (2) the address of the program; 
 11.36     (3) the effective date and expiration date of the license; 
 12.1      (4) the type of license; 
 12.2      (5) the maximum number and ages of persons that may receive 
 12.3   services from the program; and 
 12.4      (6) any special conditions of licensure. 
 12.5      (b) The commissioner may issue a provisional license for a 
 12.6   period not to exceed one year if:  
 12.7      (1) the commissioner is unable to conduct the evaluation or 
 12.8   observation required by subdivision 4, paragraph (a), clauses (3)
 12.9   and (4), because the program is not yet operational; 
 12.10     (2) certain records and documents are not available because 
 12.11  persons are not yet receiving services from the program; and 
 12.12     (3) the applicant complies with applicable laws and rules 
 12.13  in all other respects.  
 12.14  A provisional license must not be issued except at the time that 
 12.15  a license is first issued to an applicant. 
 12.16     (c) A decision by the commissioner to issue a license does 
 12.17  not guarantee that any person or persons will be placed or cared 
 12.18  for in the licensed program.  A license shall not be 
 12.19  transferable to another individual, corporation, partnership, 
 12.20  voluntary association, other organization, or controlling 
 12.21  individual, or to another location.  Unless otherwise specified 
 12.22  by statute, all licenses expire at 12:01 a.m. on the day after 
 12.23  the expiration date stated on the license.  A license holder 
 12.24  must apply for and be granted a new license to operate the 
 12.25  program or the program must not be operated after the expiration 
 12.26  date.  
 12.27     Sec. 6.  Minnesota Statutes 1994, section 245A.04, 
 12.28  subdivision 9, is amended to read: 
 12.29     Subd. 9.  [VARIANCES.] The commissioner may grant variances 
 12.30  to rules that do not affect the health or safety of persons in a 
 12.31  licensed program if the following conditions are met:  
 12.32     (1) the variance must be requested by an applicant or 
 12.33  license holder on a form and in a manner prescribed by the 
 12.34  commissioner; 
 12.35     (2) the request for a variance must include the reasons 
 12.36  that the applicant or license holder cannot comply with a 
 13.1   requirement as stated in the rule and the alternative equivalent 
 13.2   measures that the applicant or license holder will follow to 
 13.3   comply with the intent of the rule; and 
 13.4      (3) the request must state the period of time for which the 
 13.5   variance is requested.  
 13.6      The commissioner may grant a permanent variance when 
 13.7   conditions under which the variance is requested do not affect 
 13.8   the health or safety of persons being served by the licensed 
 13.9   program, nor compromise the qualifications of staff to provide 
 13.10  services.  The permanent variance shall expire as soon as the 
 13.11  conditions that warranted the variance are modified in any way.  
 13.12  Any applicant or license holder must inform the commissioner of 
 13.13  any changes or modifications that have occurred in the 
 13.14  conditions that warranted the permanent variance.  Failure to 
 13.15  advise the commissioner shall result in revocation of the 
 13.16  permanent variance and may be cause for other sanctions under 
 13.17  sections 245A.06 and 245A.07. 
 13.18     The commissioner's decision to grant or deny a variance 
 13.19  request is final and not subject to appeal under the provisions 
 13.20  of chapter 14. 
 13.21     Sec. 7.  Minnesota Statutes 1994, section 245A.06, 
 13.22  subdivision 2, is amended to read: 
 13.23     Subd. 2.  [RECONSIDERATION OF CORRECTION ORDERS.] If the 
 13.24  applicant or license holder believes that the contents of the 
 13.25  commissioner's correction order are in error, the applicant or 
 13.26  license holder may ask the department of human services to 
 13.27  reconsider the parts of the correction order that are alleged to 
 13.28  be in error.  The request for reconsideration must be in 
 13.29  writing, delivered by certified mail and received by the 
 13.30  commissioner within 20 calendar days after receipt of the 
 13.31  correction order by the applicant or license holder, and: 
 13.32     (1) specify the parts of the correction order that are 
 13.33  alleged to be in error; 
 13.34     (2) explain why they are in error; and 
 13.35     (3) include documentation to support the allegation of 
 13.36  error. 
 14.1      A request for reconsideration does not stay any provisions 
 14.2   or requirements of the correction order.  The commissioner's 
 14.3   disposition of a request for reconsideration is final and not 
 14.4   subject to appeal under chapter 14. 
 14.5      Sec. 8.  Minnesota Statutes 1994, section 245A.06, 
 14.6   subdivision 4, is amended to read: 
 14.7      Subd. 4.  [NOTICE OF FINE; APPEAL.] A license holder who is 
 14.8   ordered to pay a fine must be notified of the order by certified 
 14.9   mail.  The notice must be mailed to the address shown on the 
 14.10  application or the last known address of the license holder.  
 14.11  The notice must state the reasons the fine was ordered and must 
 14.12  inform the license holder of the responsibility for payment of 
 14.13  fines in subdivision 7 and the right to a contested case hearing 
 14.14  under chapter 14.  The license holder may appeal the order to 
 14.15  forfeit a fine by notifying the commissioner by certified mail 
 14.16  within 15 calendar days after receiving the order.  A timely 
 14.17  appeal shall stay forfeiture of the fine until the commissioner 
 14.18  issues a final order under section 245A.08, subdivision 5. 
 14.19     Sec. 9.  Minnesota Statutes 1994, section 245A.06, is 
 14.20  amended by adding a subdivision to read: 
 14.21     Subd. 7.  [RESPONSIBILITY FOR PAYMENT OF FINES.] When a 
 14.22  fine has been assessed, the license holder may not avoid payment 
 14.23  by closing, selling, or otherwise transferring the licensed 
 14.24  program to a third party.  In such an event, the license holder 
 14.25  will be personally liable for payment.  In the case of a 
 14.26  corporation, each controlling individual is personally and 
 14.27  jointly liable for payment. 
 14.28     Sec. 10.  Minnesota Statutes 1994, section 245A.07, 
 14.29  subdivision 3, is amended to read: 
 14.30     Subd. 3.  [SUSPENSION, REVOCATION, PROBATION.] The 
 14.31  commissioner may suspend, revoke, or make probationary a license 
 14.32  if a license holder fails to comply fully with applicable laws 
 14.33  or rules or knowingly gives false or misleading information to 
 14.34  the commissioner in connection with an application for a license 
 14.35  or during an investigation.  A license holder who has had a 
 14.36  license suspended, revoked, or made probationary must be given 
 15.1   notice of the action by certified mail.  The notice must be 
 15.2   mailed to the address shown on the application or the last known 
 15.3   address of the license holder.  The notice must state the 
 15.4   reasons the license was suspended, revoked, or made probationary.
 15.5      (a) If the license was suspended or revoked, the notice 
 15.6   must inform the license holder of the right to a contested case 
 15.7   hearing under chapter 14.  The license holder may appeal an 
 15.8   order suspending or revoking a license.  The appeal of an order 
 15.9   suspending or revoking a license must be made in writing by 
 15.10  certified mail and must be received by the commissioner within 
 15.11  ten calendar days after the license holder receives notice that 
 15.12  the license has been suspended or revoked.  
 15.13     (b) If the license was made probationary, the notice must 
 15.14  inform the license holder of the right to request a 
 15.15  reconsideration by the commissioner.  The request for 
 15.16  reconsideration must be made in writing by certified mail and 
 15.17  must be received by the commissioner within ten calendar days 
 15.18  after the license holder receives notice that the license has 
 15.19  been made probationary.  The license holder may submit with the 
 15.20  request for reconsideration written argument or evidence in 
 15.21  support of the request for reconsideration.  The commissioner's 
 15.22  disposition of a request for reconsideration is final and is not 
 15.23  subject to appeal under chapter 14.  
 15.24     Sec. 11.  Minnesota Statutes 1994, section 245A.14, 
 15.25  subdivision 6, is amended to read: 
 15.26     Subd. 6.  [DROP-IN CHILD CARE PROGRAMS.] (a) Except as 
 15.27  expressly set forth in this subdivision, drop-in child care 
 15.28  programs must be licensed as a drop-in program under the rules 
 15.29  governing child care programs operated in a center.  
 15.30     (b) Drop-in child care programs are exempt from the 
 15.31  following Minnesota Rules: 
 15.32     (1) part 9503.0040; 
 15.33     (2) part 9503.0045, subpart 1, items F and G; 
 15.34     (3) part 9503.0050, subpart 6, except for children less 
 15.35  than 2-1/2 years old; 
 15.36     (4) one-half the requirements of part 9503.0060, subpart 4, 
 16.1   item A, subitems (2), (5), and (8), subpart 5, item A, subitems 
 16.2   (2), (3), and (7), and subpart 6, item A, subitems (3) and (6); 
 16.3      (5) part 9503.0070; and 
 16.4      (6) part 9503.0090, subpart 2.  
 16.5      (c) A drop-in child care program must be operated under the 
 16.6   supervision of a person qualified as a director and a teacher.  
 16.7      (d) A drop-in child care program must have at least two 
 16.8   persons on staff whenever the program is operating, except that 
 16.9   the commissioner may permit variances from this requirement 
 16.10  under specified circumstances for parent cooperative programs, 
 16.11  as long as all other staff-to-child ratios are met.  
 16.12     (e) Whenever the total number of children present to be 
 16.13  cared for at a center is more than 20, children that are younger 
 16.14  than age 2-1/2 must be in a separate group.  This group may 
 16.15  contain children up to 60 months old.  This group must be cared 
 16.16  for in an area that is physically separated from older children. 
 16.17     (f) A drop-in child care program must maintain a minimum 
 16.18  staff ratio for children age 2-1/2 or greater of one staff 
 16.19  person for each ten children.  
 16.20     (g) If the program has additional staff who are on call as 
 16.21  a mandatory condition of their employment, the minimum 
 16.22  child-to-staff ratio may be exceeded only for children age 2-1/2 
 16.23  or greater, by a maximum of four children, for no more than 20 
 16.24  minutes while additional staff are in transit.  
 16.25     (h) The minimum staff-to-child ratio for infants up to 16 
 16.26  months of age is one staff person for every four infants.  The 
 16.27  minimum staff-to-child ratio for children age 17 months to 30 
 16.28  months is one staff for every seven children.  
 16.29     (i) In drop-in care programs that serve both infants and 
 16.30  older children, children up to age 2-1/2 may be supervised by 
 16.31  assistant teachers, as long as other staff are present in 
 16.32  appropriate ratios.  
 16.33     (j) The minimum staff distribution pattern for a drop-in 
 16.34  child care program serving children age 2-1/2 or greater is:  
 16.35  the first staff member must be a teacher; the second, third, and 
 16.36  fourth staff members must have at least the qualifications of a 
 17.1   child care aide; the fifth staff member must have at least the 
 17.2   qualifications of an assistant teacher; the sixth, seventh, and 
 17.3   eighth staff members must have at least the qualifications of a 
 17.4   child care aide; and the ninth staff person must have at least 
 17.5   the qualifications of an assistant teacher.  
 17.6      (k) A drop-in child care program may care for siblings 16 
 17.7   months or older together in any group.  For purposes of this 
 17.8   subdivision, sibling is defined as sister or brother, 
 17.9   half-sister or half-brother, or stepsister or stepbrother. 
 17.10     (l) The commissioner may grant a variance to any of the 
 17.11  requirements in paragraphs (a) to (k), as long as the health and 
 17.12  safety of the persons served by the program are not affected.  
 17.13  The request for a variance shall comply with the provisions in 
 17.14  section 245A.04, subdivision 9. 
 17.15     Sec. 12.  Minnesota Statutes 1994, section 256.12, 
 17.16  subdivision 14, is amended to read: 
 17.17     Subd. 14.  [DEPENDENT CHILD.] (a) "Dependent child," as 
 17.18  used in sections 256.72 to 256.87, means a child under the age 
 17.19  of 18 years, or a child under the age of 19 years who is 
 17.20  regularly attending as a full-time student, and is expected to 
 17.21  complete before reaching age 19, a high school or a secondary 
 17.22  level course of vocational or technical training designed to fit 
 17.23  students for gainful employment, who is found to be deprived of 
 17.24  parental support or care by reason of the death, continued 
 17.25  absence from the home, physical or mental incapacity of a 
 17.26  parent, or who is a child of an unemployed parent as that term 
 17.27  is defined by the commissioner of human services, such 
 17.28  definition to be consistent with and not to exceed minimum 
 17.29  standards established by the Congress of the United States and 
 17.30  the Secretary of Health and Human Services.  When defining 
 17.31  "unemployed parent," the commissioner shall count up to four 
 17.32  calendar quarters of full-time attendance in any of the 
 17.33  following toward the requirement that a principal earner have 
 17.34  six or more quarters of work in any 13 calendar quarter period 
 17.35  ending within one year before application for aid to families 
 17.36  with dependent children: 
 18.1      (1) an elementary or secondary school; 
 18.2      (2) a federally approved vocational or technical training 
 18.3   course designed to prepare the parent for gainful employment; or 
 18.4      (3) full-time participation in an education or training 
 18.5   program established under the job training partnership act.  
 18.6      (b) Dependent child also means a child: 
 18.7      (1) whose relatives are liable under the law for the 
 18.8   child's support and are not able to provide adequate care and 
 18.9   support of the child; and 
 18.10     (2) who is living with father, mother, grandfather, 
 18.11  grandmother, brother, sister, stepfather, stepmother, 
 18.12  stepbrother, stepsister, uncle, aunt, first cousin, nephew, or 
 18.13  niece in a place of residence maintained by one or more of these 
 18.14  relatives as a home. 
 18.15     (c) Dependent child also means a child who has been removed 
 18.16  from the home of a relative after a judicial determination that 
 18.17  continuance in the home would be contrary to the welfare and 
 18.18  best interests of the child and whose care and placement in a 
 18.19  foster home, a different relative's home, or a private licensed 
 18.20  child care institution is, in accordance with the rules of the 
 18.21  commissioner, the responsibility of the state or county agency 
 18.22  under sections 256.72 to 256.87.  This child is eligible for 
 18.23  benefits only through the foster care and adoption assistance 
 18.24  program contained in Title IV-E of the Social Security Act, 
 18.25  United States Code, title 42, sections 670 to 676, and is not 
 18.26  entitled to benefits under sections 256.72 to 256.87. 
 18.27     Sec. 13.  Minnesota Statutes 1994, section 256.82, is 
 18.28  amended by adding a subdivision to read: 
 18.29     Subd. 5.  [PRIVATE AGENCY CONTRACTS.] Notwithstanding any 
 18.30  other provision of this section, rates for contracted foster 
 18.31  care services to licensed child care placing agencies are a 
 18.32  matter of contract between the licensed child care placing 
 18.33  agency and the local service agency.  The foster care difficulty 
 18.34  of care laws and administrative rules do not apply, unless the 
 18.35  parties to a contract for foster care services mutually agree to 
 18.36  use them. 
 19.1      Sec. 14.  Minnesota Statutes 1994, section 256.8711, is 
 19.2   amended to read: 
 19.3      256.8711 [EMERGENCY ASSISTANCE; INTENSIVE FAMILY 
 19.4   PRESERVATION SERVICES.] 
 19.5      Subdivision 1.  [SCOPE OF SERVICES.] (a) For a family 
 19.6   experiencing an emergency as defined in subdivision 2, and for 
 19.7   whom the county authorizes services under subdivision 3, 
 19.8   intensive family preservation services authorized under this 
 19.9   section include both intensive family preservation services and 
 19.10  emergency assistance placement services. 
 19.11     (b) For purposes of this section, intensive family 
 19.12  preservation services are: 
 19.13     (1) crisis family-based services; 
 19.14     (2) counseling family-based services; and 
 19.15     (3) mental health family-based services. 
 19.16     Intensive family preservation services also include 
 19.17  family-based life management skills when it is provided in 
 19.18  conjunction with any of the three family-based services or five 
 19.19  emergency assistance placement services in this subdivision.  
 19.20  The intensive family preservation services in clauses (1), (2), 
 19.21  and (3) and life management skills have the meanings given in 
 19.22  section 256F.03, subdivision 5, paragraphs (a), (b), (c), and 
 19.23  (e). 
 19.24     (c) For purposes of this section, emergency assistance 
 19.25  placement services include: 
 19.26     (1) emergency shelter services; 
 19.27     (2) foster care services; 
 19.28     (3) group home services; 
 19.29     (4) child residential treatment services; and 
 19.30     (5) correctional facility services. 
 19.31     Subd. 2.  [DEFINITION OF EMERGENCY.] For the purposes of 
 19.32  this section, an emergency is a situation in which the dependent 
 19.33  children are at risk for out-of-home placement due to abuse, 
 19.34  neglect, or delinquency; or when the children are returning home 
 19.35  from placements but need services to prevent another 
 19.36  placement; or when the parents are unable to provide care; or 
 20.1   when the dependent children have been removed from the home by a 
 20.2   peace officer, by order of the juvenile court, or pursuant to a 
 20.3   voluntary placement agreement, to a publicly funded out-of-home 
 20.4   placement. 
 20.5      Subd. 3.  [COUNTY AUTHORIZATION.] The county agency shall 
 20.6   assess current and prospective client families with a dependent 
 20.7   under 21 years of age to determine if there is an emergency, as 
 20.8   defined in subdivision 2, and to determine if there is a need 
 20.9   for intensive family preservation services.  Upon such 
 20.10  determinations, during the period October 1, 1993 to September 
 20.11  30, 1995, counties shall authorize intensive family preservation 
 20.12  services for up to 90 days 12 months for eligible families under 
 20.13  this section and under section 256.871, subdivisions 1 and 
 20.14  3.  Effective October 1, 1995, Once authorized, intensive family 
 20.15  services shall be used singly or in any combination or duration 
 20.16  up to 12 months appropriate to the needs of the child, as 
 20.17  determined by the county agency. 
 20.18     Subd. 3a.  [LIMITATIONS ON FEDERAL FUNDING.] County 
 20.19  agencies shall determine eligibility under Title IV-E of the 
 20.20  Social Security Act for every child being considered for 
 20.21  emergency assistance placement services.  The commissioner and 
 20.22  county agencies shall make every effort to use federal funding 
 20.23  under Title IV-E of the Social Security Act instead of federal 
 20.24  funding under this section, whenever possible.  The counties' 
 20.25  obligations to continue the base level of expenditures and to 
 20.26  expand family preservation services as defined in section 
 20.27  256F.03, subdivision 5, are eliminated, with the termination of 
 20.28  if the federal revenue earned under this section is terminated.  
 20.29  If the federal revenue earned under this section is terminated 
 20.30  or inadequate, the state has no obligation to pay for these 
 20.31  services.  In the event that federal limitations or ceilings are 
 20.32  imposed on federal emergency assistance funding, the 
 20.33  commissioner shall use the funds according to these priorities: 
 20.34     (1) emergency assistance benefits under section 256.871; 
 20.35     (2) emergency assistance benefits under the reserve 
 20.36  established in subdivision 5; 
 21.1      (3) intensive family preservation services under this 
 21.2   section; and 
 21.3      (4) emergency assistance placement services under this 
 21.4   section. 
 21.5      Subd. 4.  [COST TO FAMILIES.] Family preservation services 
 21.6   provided under this section or sections 256F.01 to 256F.07 shall 
 21.7   be provided at no cost to the client and without regard to the 
 21.8   client's available income or assets.  Emergency assistance 
 21.9   placement services provided under this section shall not be 
 21.10  dependent on the client's available income or assets.  However, 
 21.11  county agencies shall seek costs of care as required under 
 21.12  section 260.251 for emergency assistance placement services. 
 21.13     Subd. 5.  [EMERGENCY ASSISTANCE RESERVE.] The commissioner 
 21.14  shall establish an emergency assistance reserve for families who 
 21.15  receive intensive family preservation services under this 
 21.16  section.  A family is eligible to receive assistance once from 
 21.17  the emergency assistance reserve if it received intensive family 
 21.18  preservation services under this section within the past 12 
 21.19  months, but has not received emergency assistance under section 
 21.20  256.871 during that period.  The emergency assistance reserve 
 21.21  shall cover the cost of the federal share of the assistance that 
 21.22  would have been available under section 256.871, except for the 
 21.23  provision of intensive family preservation services provided 
 21.24  under this section.  The emergency assistance reserve shall be 
 21.25  authorized and paid in the same manner as emergency assistance 
 21.26  is provided under section 256.871.  Funds set aside for the 
 21.27  emergency assistance reserve that are not needed as determined 
 21.28  by the commissioner shall be distributed by the terms of 
 21.29  subdivision 6, paragraph (a); or 6b, paragraph (a), depending on 
 21.30  how the funds were earned. 
 21.31     Subd. 6.  [DISTRIBUTION OF NEW FEDERAL REVENUE EARNED FOR 
 21.32  INTENSIVE FAMILY PRESERVATION SERVICES.] (a) All federal funds 
 21.33  not set aside under paragraph (b), and at least 50 percent of 
 21.34  all federal funds earned for intensive family preservation 
 21.35  services under this section and earned through assessment 
 21.36  activity under subdivision 3, shall be paid to each county based 
 22.1   on its earnings and assessment activity, respectively, and shall 
 22.2   be used by each county to expand family preservation core 
 22.3   services as defined in section 256F.03, subdivision 5 10, and 
 22.4   may be used to expand crisis nursery services.  If a county 
 22.5   joins a local children's mental health collaborative as 
 22.6   authorized by the 1993 legislature, then the federal 
 22.7   reimbursement received under this paragraph by the county for 
 22.8   providing intensive family preservation services to children 
 22.9   served by the local collaborative shall be transferred by the 
 22.10  county to the integrated fund.  The federal reimbursement 
 22.11  transferred to the integrated fund by the county must be used 
 22.12  for intensive family preservation services as defined in section 
 22.13  256F.03, subdivision 5, to the target population.  
 22.14     (b) The commissioner shall set aside a portion, not to 
 22.15  exceed 50 percent, of the federal funds earned for intensive 
 22.16  family preservation services under this section and earned 
 22.17  through assessment activity described under subdivision 3.  The 
 22.18  set aside funds shall be used to develop and expand intensive 
 22.19  family preservation services statewide as provided in 
 22.20  subdivisions 6a and 7 and establish an emergency assistance 
 22.21  reserve as provided in subdivision 5.  
 22.22     Subd. 6a.  [DEVELOPMENT GRANTS.] Except for the portion 
 22.23  needed for the emergency assistance reserve provided in 
 22.24  subdivision 5, the commissioner may shall distribute the funds 
 22.25  set aside under subdivision 6, paragraph (b), 
 22.26  through development grants to a county or counties to establish 
 22.27  and maintain approved intensive family preservation core 
 22.28  services as defined in section 256F.03, subdivision 10, 
 22.29  statewide.  Funds available for crisis family-based services 
 22.30  through section 256F.05, subdivision 8, shall be considered in 
 22.31  establishing intensive family preservation services statewide.  
 22.32  The commissioner may phase in intensive family preservation 
 22.33  services in a county or group of counties as new federal funds 
 22.34  become available.  The commissioner's priority is to establish a 
 22.35  minimum level of intensive family preservation core services 
 22.36  statewide.  Each county's development grant shall be paid and 
 23.1   used as provided in sections 256F.01 to 256F.06. 
 23.2      Subd. 6b.  [DISTRIBUTION OF NEW FEDERAL REVENUE EARNED FOR 
 23.3   EMERGENCY ASSISTANCE PLACEMENT SERVICES.] (a) All federal funds 
 23.4   earned for emergency assistance placement services not set aside 
 23.5   under paragraph (b), shall be paid to each county based on its 
 23.6   earnings.  Fifty percent of these payments shall constitute the 
 23.7   placement earnings grant of the family preservation fund under 
 23.8   sections 256F.01 to 256F.06.  The balance of these payments are 
 23.9   available for counties to use for local needs, as determined by 
 23.10  the county board. 
 23.11     (b) The commissioner may set aside a portion, not to exceed 
 23.12  15 percent, of the federal funds earned for emergency assistance 
 23.13  placement services under this section.  The set aside funds 
 23.14  shall be used for the emergency assistance reserve as provided 
 23.15  in subdivision 5. 
 23.16     Subd. 7.  [EXPANSION OF SERVICES AND BASE LEVEL OF 
 23.17  EXPENDITURES.] (a) Counties must continue the base level of 
 23.18  expenditures for family preservation core services as defined in 
 23.19  section 256F.03, subdivision 5 10, from any state, county, or 
 23.20  federal funding source, which, in the absence of federal funds 
 23.21  earned for intensive family preservation services under this 
 23.22  section and earned through assessment activity described under 
 23.23  subdivision 3, would have been available for these services.  
 23.24  The commissioner shall review the county expenditures annually, 
 23.25  using reports required under sections 245.482, 256.01, 
 23.26  subdivision 2, paragraph (17), and 256E.08, subdivision 8, to 
 23.27  ensure that the base level of expenditures for family 
 23.28  preservation core services as defined in section 256F.03, 
 23.29  subdivision 5 10, is continued from sources other than the 
 23.30  federal funds earned under this section and earned through 
 23.31  assessment activity described under subdivision 3. 
 23.32     (b) The commissioner may shall, at the request of a county, 
 23.33  reduce, suspend, or eliminate either or both of a county's 
 23.34  obligations to continue the base level of expenditures and to 
 23.35  expand family preservation core services as defined in section 
 23.36  256F.03, subdivision 5 10, if the commissioner determines that 
 24.1   one or more of the following conditions apply to that county: 
 24.2      (1) imposition of levy limits or other levy restrictions 
 24.3   that significantly reduce available social service funds; 
 24.4      (2) reduction in the net tax capacity of the taxable 
 24.5   property within a county that significantly reduces available 
 24.6   social service funds; 
 24.7      (3) reduction in the number of children under age 19 in the 
 24.8   county by 25 percent when compared with the number in the base 
 24.9   year using the most recent data provided by the state 
 24.10  demographer's office; or 
 24.11     (4) termination or reduction of the federal revenue earned 
 24.12  under this section; or 
 24.13     (5) other changes in state law that significantly impact 
 24.14  the receipt or distribution of state and federal funding. 
 24.15     (c) The commissioner may suspend for one year either or 
 24.16  both of a county's obligations to continue the base level of 
 24.17  expenditures and to expand family preservation core services as 
 24.18  defined in section 256F.03, subdivision 5 10, if the 
 24.19  commissioner determines that in the previous year one or more of 
 24.20  the following conditions applied to that county: 
 24.21     (1) the unduplicated number of families who received family 
 24.22  preservation services under section 256F.03, subdivision 5, 
 24.23  paragraphs (a), (b), (c), and (e), equals or exceeds the 
 24.24  unduplicated number of children who entered placement under 
 24.25  sections 257.071 and 393.07, subdivisions 1 and 2, during the 
 24.26  year; 
 24.27     (2) the total number of children in placement under 
 24.28  sections 257.071 and 393.07, subdivisions 1 and 2, has been 
 24.29  reduced by 50 percent from the total number in the base year; or 
 24.30     (3) the average number of children in placement under 
 24.31  sections 257.071 and 393.07, subdivisions 1 and 2, on the last 
 24.32  day of each month is equal to or less than one child per 1,000 
 24.33  children in the county. 
 24.34     (d) For the purposes of this section, the base year is 
 24.35  calendar year 1992.  For the purposes of this section, the base 
 24.36  level of expenditures is the level of county expenditures in the 
 25.1   base year for eligible family preservation services under 
 25.2   section 256F.03, subdivision 5, paragraphs (a), (b), (c), and 
 25.3   (e). 
 25.4      Subd. 8.  [COUNTY RESPONSIBILITIES.] (a) Notwithstanding 
 25.5   section 256.871, subdivision 6, for intensive 
 25.6   family preservation services provided under this section, the 
 25.7   county agency shall submit quarterly fiscal reports as required 
 25.8   under section 256.01, subdivision 2, clause (17), and provide 
 25.9   the nonfederal share. 
 25.10     (b) County expenditures eligible for federal reimbursement 
 25.11  under this section must not be made from federal funds or funds 
 25.12  used to match other federal funds. 
 25.13     (c) The commissioner may suspend, reduce, or terminate the 
 25.14  federal reimbursement to a county that does not meet the 
 25.15  reporting or other requirements of this section. 
 25.16     Subd. 9.  [PAYMENTS.] Notwithstanding section 256.025, 
 25.17  subdivision 2, payments to counties for social service 
 25.18  expenditures for intensive family preservation services under 
 25.19  this section shall be made only from the federal earnings under 
 25.20  this section and earned through assessment activity described 
 25.21  under subdivision 3.  Counties may use up to ten percent of 
 25.22  federal earnings received under subdivision 6, paragraph (a), to 
 25.23  cover costs of income maintenance activities related to the 
 25.24  operation of this section and sections 256B.094 and 256F.10. 
 25.25     Subd. 10.  [COMMISSIONER RESPONSIBILITIES.] The 
 25.26  commissioner in consultation with counties shall analyze state 
 25.27  funding options to cover costs of counties' base level 
 25.28  expenditures and any expansion of the nonfederal share of 
 25.29  intensive family preservation services resulting from 
 25.30  implementation of this section.  The commissioner shall also 
 25.31  study problems of implementation, barriers to maximizing federal 
 25.32  revenue, and the impact on out-of-home placements of 
 25.33  implementation of this section.  The commissioner shall report 
 25.34  to the legislature on the results of this analysis and study, 
 25.35  together with recommendations, by February 15, 1995.  
 25.36     Sec. 15.  Minnesota Statutes 1994, section 256D.02, 
 26.1   subdivision 5, is amended to read: 
 26.2      Subd. 5.  "Family" means the applicant or recipient and the 
 26.3   following persons who reside with the applicant or recipient:  
 26.4      (1) the applicant's spouse; 
 26.5      (2) any minor child of whom the applicant is a parent, 
 26.6   stepparent, or legal custodian, and that child's minor siblings, 
 26.7   including half-siblings and stepsiblings; 
 26.8      (3) the other parent of the applicant's minor child or 
 26.9   children together with that parent's minor children, and, if 
 26.10  that parent is a minor, his or her parents, stepparents, legal 
 26.11  guardians, and minor siblings; and 
 26.12     (4) if the applicant or recipient is a minor, the minor's 
 26.13  parents, stepparents, or legal guardians, and any other minor 
 26.14  children for whom those parents, stepparents, or legal guardians 
 26.15  are financially responsible.  
 26.16     For the period July 1, 1993 to June 30, 1995, A minor child 
 26.17  who is temporarily absent from the applicant's or recipient's 
 26.18  home due to placement in foster care paid for from state or 
 26.19  local funds, but who is expected to return within six months of 
 26.20  the month of departure, is considered to be residing with the 
 26.21  applicant or recipient. 
 26.22     A "family" must contain at least one minor child and at 
 26.23  least one of that child's natural or adoptive parents, 
 26.24  stepparents, or legal custodians. 
 26.25     Sec. 16.  Minnesota Statutes 1994, section 256F.01, is 
 26.26  amended to read: 
 26.27     256F.01 [PUBLIC POLICY.] 
 26.28     The public policy of this state is to assure that all 
 26.29  children, regardless of minority racial or ethnic heritage, live 
 26.30  in families that offer a safe, permanent relationship with 
 26.31  nurturing parents or caretakers.  To help assure children the 
 26.32  opportunity to establish lifetime relationships, public social 
 26.33  services must strive to provide culturally competent services 
 26.34  and be directed toward: 
 26.35     (1) preventing the unnecessary separation of children from 
 26.36  their families by identifying family problems, assisting 
 27.1   families in resolving their problems, and preventing breakup of 
 27.2   the family if it is desirable and possible; 
 27.3      (2) restoring to their families children who have been 
 27.4   removed, by continuing to provide services to the reunited child 
 27.5   and the families; 
 27.6      (3) placing children in suitable adoptive homes, in cases 
 27.7   where restoration to the biological family is not possible or 
 27.8   appropriate; and 
 27.9      (4) assuring adequate care of children away from their 
 27.10  homes, in cases where the child cannot be returned home or 
 27.11  cannot be placed for adoption. 
 27.12     Sec. 17.  Minnesota Statutes 1994, section 256F.02, is 
 27.13  amended to read: 
 27.14     256F.02 [CITATION.] 
 27.15     Sections 256F.01 to 256F.07 and 256F.10 may be cited as the 
 27.16  "Minnesota family preservation act." 
 27.17     Sec. 18.  Minnesota Statutes 1994, section 256F.03, 
 27.18  subdivision 5, is amended to read: 
 27.19     Subd. 5.  [FAMILY-BASED SERVICES.] "Family-based services" 
 27.20  means one or more of the services described in paragraphs (a) to 
 27.21  (f) provided to families primarily in their own home for a 
 27.22  limited time.  Family-based services eligible for funding under 
 27.23  the family preservation act are the services described in 
 27.24  paragraphs (a) to (f). 
 27.25     (a) [CRISIS SERVICES.] "Crisis services" means professional 
 27.26  services provided within 24 hours of referral to alleviate a 
 27.27  family crisis and to offer an alternative to placing a child 
 27.28  outside the family home.  The services are intensive and time 
 27.29  limited.  The service may offer transition to other appropriate 
 27.30  community-based services. 
 27.31     (b) [COUNSELING SERVICES.] "Counseling services" means 
 27.32  professional family counseling provided to alleviate individual 
 27.33  and family dysfunction; provide an alternative to placing a 
 27.34  child outside the family home; or permit a child to return 
 27.35  home.  The duration, frequency, and intensity of the service is 
 27.36  determined in the individual or family service plan. 
 28.1      (c) [LIFE MANAGEMENT SKILLS SERVICES.] "Life management 
 28.2   skills services" means paraprofessional services that teach 
 28.3   family members skills in such areas as parenting, budgeting, 
 28.4   home management, and communication.  The goal is to strengthen 
 28.5   family skills as an alternative to placing a child outside the 
 28.6   family home or to permit a child to return home.  A social 
 28.7   worker shall coordinate these services within the family case 
 28.8   plan. 
 28.9      (d) [CASE COORDINATION SERVICES.] "Case coordination 
 28.10  services" means professional services provided to an individual, 
 28.11  family, or caretaker as an alternative to placing a child 
 28.12  outside the family home, to permit a child to return home, or to 
 28.13  stabilize the long-term or permanent placement of a child.  
 28.14  Coordinated services are provided directly, are arranged, or are 
 28.15  monitored to meet the needs of a child and family.  The 
 28.16  duration, frequency, and intensity of services is determined in 
 28.17  the individual or family service plan. 
 28.18     (e) [MENTAL HEALTH SERVICES.] "Mental health services" 
 28.19  means the professional services defined in section 245.4871, 
 28.20  subdivision 31. 
 28.21     (f) [EARLY INTERVENTION SERVICES.] "Early intervention 
 28.22  services" means family-based intervention services designed to 
 28.23  help at-risk families avoid crisis situations. 
 28.24     Sec. 19.  Minnesota Statutes 1994, section 256F.03, is 
 28.25  amended by adding a subdivision to read: 
 28.26     Subd. 10.  [FAMILY PRESERVATION CORE SERVICES.] "Family 
 28.27  preservation core services" means adequate capacity of crisis 
 28.28  services as defined in subdivision 5, paragraph (a), plus either 
 28.29  or both counseling services as defined in subdivision 5, 
 28.30  paragraph (b), and mental health services as defined in 
 28.31  subdivision 5, paragraph (e), plus life management skills 
 28.32  services as defined in subdivision 5, paragraph (c). 
 28.33     Sec. 20.  Minnesota Statutes 1994, section 256F.04, 
 28.34  subdivision 1, is amended to read: 
 28.35     Subdivision 1.  [GRANT PROGRAM FAMILY PRESERVATION FUND.] 
 28.36  The commissioner shall establish a statewide family preservation 
 29.1   grant program fund to assist counties in providing placement 
 29.2   prevention and family reunification services.  This fund shall 
 29.3   include a basic grant for family preservation services, a 
 29.4   placement earnings grant under section 256.8711, subdivision 6b, 
 29.5   paragraph (a), and a development grant under section 256.8711, 
 29.6   subdivision 6a, to assist counties in developing and expanding 
 29.7   their family preservation core services as defined in section 
 29.8   256F.03, subdivision 10.  Beginning with calendar year 1998, 
 29.9   after each annual or quarterly calculation, these three 
 29.10  component grants shall be added together and treated as a 
 29.11  single-family preservation grant. 
 29.12     Sec. 21.  Minnesota Statutes 1994, section 256F.04, 
 29.13  subdivision 2, is amended to read: 
 29.14     Subd. 2.  [FORMS AND INSTRUCTIONS.] The commissioner shall 
 29.15  provide necessary forms and instructions to the counties for 
 29.16  their community social services plan, as required in section 
 29.17  256E.09, that incorporate the permanency plan format and 
 29.18  information necessary to apply for a family preservation fund 
 29.19  grant, and to exercise county options under section 256F.05, 
 29.20  subdivision 7, paragraph (a), or subdivision 8, paragraph (c).  
 29.21     Sec. 22.  Minnesota Statutes 1994, section 256F.05, is 
 29.22  amended by adding a subdivision to read: 
 29.23     Subd. 1a.  [DEVELOPMENT OF FAMILY PRESERVATION CORE 
 29.24  SERVICES.] The commissioner shall annually determine whether a 
 29.25  county's family preservation core services, as defined in 
 29.26  section 256F.03, subdivision 10, are developed for that calendar 
 29.27  year.  In making this determination for any given calendar year, 
 29.28  the commissioner shall consider factors for each county such as 
 29.29  which family preservation core services are included in its 
 29.30  community services plan under section 256E.09, the ratio of 
 29.31  expenditures on family preservation core services to 
 29.32  expenditures on out-of-home placements, the availability of 
 29.33  crisis services as defined in section 256F.03, subdivision 5, 
 29.34  paragraph (a), and recent trends in out-of-home placements both 
 29.35  within that county and statewide. 
 29.36     Sec. 23.  Minnesota Statutes 1994, section 256F.05, 
 30.1   subdivision 2, is amended to read: 
 30.2      Subd. 2.  [MONEY AVAILABLE FOR THE BASIC GRANT.] Money 
 30.3   appropriated for family preservation grants to counties under 
 30.4   sections 256F.04 to 256F.07, together with an amount as 
 30.5   determined by the commissioner of title IV-B funds distributed 
 30.6   to Minnesota according to the Social Security Act, United States 
 30.7   Code, title 42, section 621, must be distributed to counties on 
 30.8   a calendar year basis according to the formula in subdivision 3. 
 30.9      Sec. 24.  Minnesota Statutes 1994, section 256F.05, 
 30.10  subdivision 3, is amended to read: 
 30.11     Subd. 3.  [BASIC GRANT FORMULA.] (a) The amount of money 
 30.12  allocated to counties under subdivision 2 must be based on the 
 30.13  following two factors shall first be allocated in amounts equal 
 30.14  to each county's guaranteed floor according to paragraph (b), 
 30.15  and second, any remaining available funds allocated as follows: 
 30.16     (1) 90 percent of the funds shall be allocated based on the 
 30.17  population of the county under age 19 years as compared to the 
 30.18  state as a whole as determined by the most recent data from the 
 30.19  state demographer's office; and 
 30.20     (2) ten percent of the funds shall be allocated based on 
 30.21  the county's percentage share of the number of minority children 
 30.22  in substitute care receiving children's case management services 
 30.23  as defined by the commissioner based on the most recent data as 
 30.24  determined by the most recent department of human services 
 30.25  annual report on children in foster care commissioner. 
 30.26     The amount of money allocated according to formula factor 
 30.27  (1) must not be less than 90 percent of the total allocated 
 30.28  under subdivision 2. 
 30.29     (b) Each county's basic grant guaranteed floor shall be 
 30.30  calculated as follows: 
 30.31     (1) 90 percent of the county's allocation received in the 
 30.32  preceding calendar year.  For calendar year 1996 only, the 
 30.33  allocation received in the preceding calendar year shall be 
 30.34  determined by the commissioner based on the funding previously 
 30.35  distributed as separate grants under sections 256F.04 to 
 30.36  256F.07; and 
 31.1      (2) when the amounts of funds available for allocation is 
 31.2   less than the amount available in the previous year, each 
 31.3   county's previous year allocation shall be reduced in proportion 
 31.4   to the reduction in the statewide funding, for the purpose of 
 31.5   establishing the guaranteed floor. 
 31.6      (c) The commissioner shall regularly review the use of 
 31.7   family preservation fund allocations by county.  The 
 31.8   commissioner may reallocate unexpended or unencumbered money at 
 31.9   any time among those counties that have expended or are 
 31.10  projected to expend their full allocation. 
 31.11     Sec. 25.  Minnesota Statutes 1994, section 256F.05, 
 31.12  subdivision 4, is amended to read: 
 31.13     Subd. 4.  [PAYMENTS.] The commissioner shall make grant 
 31.14  payments to each county whose biennial community social services 
 31.15  plan includes a permanency plan has been approved under section 
 31.16  256F.04, subdivision 2.  The payment must be made basic grant 
 31.17  under subdivisions 2 and 3 and the development grant under 
 31.18  section 256.8711, subdivision 6a, shall be paid to counties in 
 31.19  four installments per year.  The commissioner may certify the 
 31.20  payments for the first three months of a calendar year.  
 31.21  Subsequent payments must be made on May 15, August 15, and 
 31.22  November 15, of each calendar year.  When an amount of title 
 31.23  IV-B funds as determined by the commissioner is made available, 
 31.24  it shall be reimbursed to counties on November 15. shall be 
 31.25  based on reported expenditures and may be adjusted for 
 31.26  anticipated spending patterns.  The placement earnings grant 
 31.27  under section 256.8711, subdivision 6b, paragraph (a), shall be 
 31.28  based on earnings and coordinated with the other payments.  In 
 31.29  calendar years 1996 and 1997, the placement earnings grant and 
 31.30  the development grant shall be distributed separately from the 
 31.31  basic grant, except as provided in subdivision 7, paragraph 
 31.32  (a).  Beginning with calendar year 1998, after each annual or 
 31.33  quarterly calculation, these three component grants shall be 
 31.34  added together into a single-family preservation fund grant and 
 31.35  treated as a single grant. 
 31.36     Sec. 26.  Minnesota Statutes 1994, section 256F.05, 
 32.1   subdivision 5, is amended to read: 
 32.2      Subd. 5.  [INAPPROPRIATE EXPENDITURES.] Family preservation 
 32.3   fund basic, placement earnings, and development grant money must 
 32.4   not be used for: 
 32.5      (1) child day care necessary solely because of the 
 32.6   employment or training to prepare for employment, of a parent or 
 32.7   other relative with whom the child is living; 
 32.8      (2) residential facility payments; 
 32.9      (3) adoption assistance payments; 
 32.10     (4) public assistance payments for aid to families with 
 32.11  dependent children, supplemental aid, medical assistance, 
 32.12  general assistance, general assistance medical care, or 
 32.13  community health services authorized by sections 145A.09 to 
 32.14  145A.13; or 
 32.15     (5) administrative costs for local social services agency 
 32.16  public assistance staff.  
 32.17     Sec. 27.  Minnesota Statutes 1994, section 256F.05, 
 32.18  subdivision 7, is amended to read: 
 32.19     Subd. 7.  [TRANSFER OF FUNDS USES OF PLACEMENT EARNINGS AND 
 32.20  DEVELOPMENT GRANTS.] Notwithstanding subdivision 1, the 
 32.21  commissioner may transfer money from the appropriation for 
 32.22  family preservation grants to counties into the subsidized 
 32.23  adoption account when a deficit in the subsidized adoption 
 32.24  program occurs.  The amount of the transfer must not exceed five 
 32.25  percent of the appropriation for family preservation grants to 
 32.26  counties. (a) For calendar years 1996 and 1997, each county must 
 32.27  use its placement earnings and development grants to develop and 
 32.28  expand its family preservation core services as defined in 
 32.29  section 256F.03, subdivision 10.  If a county demonstrates that 
 32.30  its family preservation core services are developed as provided 
 32.31  in subdivision 1a, then at the county's written request, the 
 32.32  commissioner shall add its placement earnings and development 
 32.33  grant to its basic grant, to be used as a single-family 
 32.34  preservation fund grant. 
 32.35     (b) Beginning with calendar year 1998, each county which 
 32.36  has demonstrated that year that its family preservation core 
 33.1   services are developed as provided in subdivision 1a, shall have 
 33.2   its placement earnings and development grant added to its basic 
 33.3   grant, to be used as a single-family preservation fund grant.  
 33.4   The development grant for any county which has not so 
 33.5   demonstrated shall be redistributed to all counties which have, 
 33.6   in proportion to their calculated development grants. 
 33.7      Sec. 28.  Minnesota Statutes 1994, section 256F.05, 
 33.8   subdivision 8, is amended to read: 
 33.9      Subd. 8.  [USES OF FAMILY PRESERVATION FUND GRANTS FOR 
 33.10  FAMILY-BASED CRISIS SERVICES.] Within the limits of 
 33.11  appropriations made for this purpose, the commissioner may award 
 33.12  grants for the families first program, including section 
 33.13  256F.08, to be distributed on a calendar year basis to counties 
 33.14  to provide programs for family-based crisis services defined in 
 33.15  section 256F.03, subdivision 5.  The commissioner shall ask 
 33.16  counties to present proposals for the funding and shall award 
 33.17  grants for the funding on a competitive basis.  Beginning 
 33.18  January 1, 1993, the state share of the costs of the programs 
 33.19  shall be 75 percent and the county share, 25 percent.  For both 
 33.20  basic grants and single-family preservation fund grants: 
 33.21     (a) A county which has not demonstrated that year that its 
 33.22  family preservation core services are developed as provided in 
 33.23  subdivision 1a, must use its family preservation fund grant 
 33.24  exclusively for family preservation services defined in section 
 33.25  256F.03, subdivision 5, paragraphs (a), (b), (c), and (e). 
 33.26     (b) A county which has demonstrated that year that its 
 33.27  family preservation core services are developed becomes eligible 
 33.28  either to continue using its family preservation fund grant as 
 33.29  provided in paragraph (a), or to exercise the expanded service 
 33.30  option under paragraph (c). 
 33.31     (c) The expanded service option permits an eligible county 
 33.32  to use its family preservation fund grant for child welfare 
 33.33  preventative services as defined in section 256F.10, subdivision 
 33.34  7, paragraph (d).  To exercise this option, an eligible county 
 33.35  must notify the commissioner in writing of its intention to do 
 33.36  so no later than 30 days into the quarter during which it 
 34.1   intends to begin or in its county plan, as provided in section 
 34.2   256F.04, subdivision 2.  Effective with the first day of that 
 34.3   quarter, the county must maintain its base level of expenditures 
 34.4   for child welfare preventative services and use the family 
 34.5   preservation fund to expand them.  The base level of 
 34.6   expenditures for a county shall be that established under 
 34.7   section 256F.10, subdivision 7.  For counties which have no such 
 34.8   base established, a comparable base shall be established with 
 34.9   the base year being the calendar year ending at least two 
 34.10  calendar quarters before the first calendar quarter in which the 
 34.11  county exercises its expanded service option.  The commissioner 
 34.12  shall, at the request of the counties, reduce, suspend, or 
 34.13  eliminate either or both of a county's obligations to continue 
 34.14  the base level of expenditures and to expand child welfare 
 34.15  preventative services based on conditions described in section 
 34.16  256F.10, subdivision 7, paragraph (b) or (c).  
 34.17     (d) Each county's placement earnings and development grant 
 34.18  shall be determined under section 256.8711, but after each 
 34.19  annual or quarterly calculation, if added to that county's basic 
 34.20  grant, the three component grants shall be treated as a 
 34.21  single-family preservation fund grant. 
 34.22     Sec. 29.  Minnesota Statutes 1994, section 256F.06, 
 34.23  subdivision 1, is amended to read: 
 34.24     Subdivision 1.  [RESPONSIBILITIES.] A county board may, 
 34.25  alone or in combination with other county boards, apply for a 
 34.26  family preservation fund grant as provided in section 256F.04, 
 34.27  subdivision 2.  Upon approval of the family preservation grant, 
 34.28  the county board may contract for or directly provide 
 34.29  family-based and other eligible services. 
 34.30     Sec. 30.  Minnesota Statutes 1994, section 256F.06, 
 34.31  subdivision 2, is amended to read: 
 34.32     Subd. 2.  [USES OF GRANTS DEVELOPING FAMILY PRESERVATION 
 34.33  CORE SERVICES.] The grant must be used exclusively for 
 34.34  family-based services.  A county board shall endeavor to develop 
 34.35  and expand its family preservation core services.  When a county 
 34.36  can demonstrate that its family preservation core services are 
 35.1   developed as provided in section 256F.05, subdivision 1a, a 
 35.2   county board becomes eligible to exercise the expanded service 
 35.3   option under section 256F.05, subdivision 8, paragraph (c).  For 
 35.4   calendar years 1996 and 1997, the county board also becomes 
 35.5   eligible to request that its basic, placement earnings, and 
 35.6   development grants be added into a single grant under section 
 35.7   256F.05, subdivision 7, paragraph (a). 
 35.8      Sec. 31.  Minnesota Statutes 1994, section 256F.06, 
 35.9   subdivision 4, is amended to read: 
 35.10     Subd. 4.  [REPORTING.] The commissioner shall specify 
 35.11  requirements for reports, including quarterly fiscal reports, 
 35.12  according to section 256.01, subdivision 2, paragraph (17).  The 
 35.13  reports must include: 
 35.14     (1) a detailed statement of expenses attributable to the 
 35.15  grant during the preceding quarter; and 
 35.16     (2) a statement of the expenditure of money for 
 35.17  family-based services by the county during the preceding 
 35.18  quarter, including the number of clients served and the 
 35.19  expenditures, by client, for each service provided.  
 35.20     Sec. 32.  Minnesota Statutes 1994, section 257.3571, 
 35.21  subdivision 1, is amended to read: 
 35.22     Subdivision 1.  [PRIMARY SUPPORT GRANTS.] The commissioner 
 35.23  shall establish direct grants to Indian tribes and, Indian 
 35.24  organizations, and tribal social service agency programs located 
 35.25  off-reservation that serve Indian children and their families to 
 35.26  provide primary support for Indian child welfare programs to 
 35.27  implement the Indian family preservation act.  
 35.28     Sec. 33.  Minnesota Statutes 1994, section 257.3572, is 
 35.29  amended to read: 
 35.30     257.3572 [GRANT APPLICATIONS.] 
 35.31     A tribe or, Indian organization, or tribal social service 
 35.32  agency program located off-reservation may apply for primary 
 35.33  support grants under section 257.3571, subdivision 1.  A local 
 35.34  social service agency, tribe, Indian organization, or other 
 35.35  social service organization may apply for special focus grants 
 35.36  under section 257.3571, subdivision 2.  Civil legal service 
 36.1   organizations eligible for grants under section 257.3571, 
 36.2   subdivision 2a, may apply for grants under that section.  
 36.3   Application may be made alone or in combination with other 
 36.4   tribes or Indian organizations.  
 36.5      Sec. 34.  Minnesota Statutes 1994, section 257.3577, 
 36.6   subdivision 1, is amended to read: 
 36.7      Subdivision 1.  [PRIMARY SUPPORT GRANTS.] (a) The amount 
 36.8   available for grants established under section 257.3571, 
 36.9   subdivision 1, to tribes and, Indian organization grants 
 36.10  organizations, and tribal social service agency programs located 
 36.11  off-reservation is four-fifths of the total annual appropriation 
 36.12  for Indian child welfare grants.  
 36.13     (b) The commissioner shall award tribes at least 70 percent 
 36.14  of the amount set in paragraph (a) for primary support grants.  
 36.15  Each tribe shall be awarded a base amount of five percent of the 
 36.16  total amount set in this paragraph.  In addition, each tribe 
 36.17  shall be allocated a proportion of the balance of the amount set 
 36.18  in this paragraph, less the total base amounts for all 
 36.19  reservations.  This proportion must equal the ratio of the 
 36.20  tribe's on-reservation population to the state's total 
 36.21  on-reservation population.  Population data must be based on the 
 36.22  most recent federal census data according to the state 
 36.23  demographer's office. 
 36.24     (c) The commissioner shall award Indian organizations and 
 36.25  tribal social service agency programs located off-reservation 
 36.26  that serve Indian children and families up to 30 percent of the 
 36.27  amount set in paragraph (a) for primary support grants.  A 
 36.28  maximum of four multiservice Indian organizations and tribal 
 36.29  social service agency programs located off-reservation may be 
 36.30  awarded grants under this paragraph.  "Multiservice Indian 
 36.31  organizations" means Indian organizations recognized by the 
 36.32  Indian community as providing a broad continuum of social, 
 36.33  educational, or cultural services, including Indian child 
 36.34  welfare services designed to meet the unique needs of the Indian 
 36.35  communities in Minneapolis, St. Paul, and Duluth.  Grants may be 
 36.36  awarded to programs that submit acceptable proposals, comply 
 37.1   with the goals and the application process of the program, and 
 37.2   have budgets that reflect appropriate and efficient use of funds.
 37.3   To maintain continuity of service in Indian communities, primary 
 37.4   support grants awarded under this paragraph which meet the grant 
 37.5   criteria and have demonstrated satisfactory performance as 
 37.6   established by the commissioner may be awarded on a 
 37.7   noncompetitive basis.  The commissioner may revoke or deny 
 37.8   funding for Indian organizations or tribal social service 
 37.9   agencies failing to meet the grant criteria established by the 
 37.10  commissioner, and the commissioner may request new proposals 
 37.11  from Indian organizations or tribal social service agencies to 
 37.12  the extent that funding is available. 
 37.13     Sec. 35.  [REPEALER.] 
 37.14     Minnesota Statutes 1994, sections 256F.05, subdivisions 2a 
 37.15  and 4a; and 256F.06, subdivision 3, are repealed. 
 37.16     Sec. 36.  [EFFECTIVE DATE.] 
 37.17     Sections 1 to 12 are effective the day following final 
 37.18  enactment. 
 37.19     Section 14 is effective October 1, 1995. 
 37.20     Sections 16 to 30 are effective January 1, 1996.