1.1                          A bill for an act 
  1.2             relating to human services; providing for finance and 
  1.3             management; changing program provisions in life skills 
  1.4             and self-sufficiency; changing provisions for 
  1.5             children's programs; changing provisions related to 
  1.6             medical assistance, general assistance medical care, 
  1.7             personal care attendants, and TEFRA; changing 
  1.8             provisions for long-term care; changing provisions for 
  1.9             community mental health and health services; 
  1.10            appropriating money; amending Minnesota Statutes 1994, 
  1.11            sections 16B.08, subdivision 5; 62A.045; 62A.046; 
  1.12            62A.048; 62A.27; 62N.381, subdivisions 2, 3, and 4; 
  1.13            144.0721, by adding subdivisions; 144.0723, 
  1.14            subdivisions 1, 2, 3, 4, and 6; 144.122; 144.226, 
  1.15            subdivision 1; 144.562, subdivisions 2 and 4; 144.801, 
  1.16            subdivisions 3 and 5; 144.802; 144.803; 144.804; 
  1.17            144.806; 144.807; 144.808; 144.809; 144.8091; 
  1.18            144.8093; 144.8095; 144A.071, subdivisions 2, 3, 4a, 
  1.19            and by adding a subdivision; 144A.073, subdivisions 1, 
  1.20            2, 3, 4, 5, 8, and by adding a subdivision; 144A.33, 
  1.21            subdivision 3; 144B.01, subdivision 5; 144C.01, 
  1.22            subdivision 2; 144C.05, subdivision 1; 144C.07; 
  1.23            144C.08; 144C.09, subdivision 2; 144C.10; 145A.15; 
  1.24            147.01, subdivision 6; 157.03; 171.07, by adding a 
  1.25            subdivision; 245.041; 245.4871, subdivisions 12, 33a, 
  1.26            and by adding a subdivision; 245.4873, subdivision 6; 
  1.27            245.4874; 245.4875, subdivision 2, and by adding a 
  1.28            subdivision; 245.4878; 245.4882, subdivision 5; 
  1.29            245.4885, subdivision 2; 245.4886, by adding a 
  1.30            subdivision; 245.492, subdivisions 2, 6, 9, and 23; 
  1.31            245.493, subdivision 2; 245.4932, subdivisions 1, 2, 
  1.32            3, and 4; 245.494, subdivisions 1 and 3; 245.495; 
  1.33            245.496, subdivision 3, and by adding a subdivision; 
  1.34            245A.03, subdivision 2a; 245A.04, subdivisions 3, 3b, 
  1.35            7, and 9; 245A.06, subdivisions 2, 4, and by adding a 
  1.36            subdivision; 245A.07, subdivision 3; 245A.14, 
  1.37            subdivisions 6 and 7; 246.18, subdivision 4, and by 
  1.38            adding a subdivision; 246.23, subdivision 2; 246.56, 
  1.39            by adding a subdivision; 252.27, subdivisions 1, 1a, 
  1.40            2a, and by adding subdivisions; 252.275, subdivisions 
  1.41            3, 4, and 8; 252.292, subdivision 4; 252.46, 
  1.42            subdivisions 1, 3, 6, 17, and by adding subdivisions; 
  1.43            253B.091; 254A.17, subdivision 3; 254B.02, subdivision 
  1.44            1; 254B.05, subdivisions 1 and 4; 256.014, subdivision 
  1.45            1; 256.015, subdivisions 1, 2, and 7; 256.025, 
  1.46            subdivisions 1 and 3; 256.026; 256.034, subdivision 1; 
  2.1             256.045, subdivisions 3, 4, and 5; 256.12, subdivision 
  2.2             14; 256.73, subdivisions 2 and 3a; 256.736, 
  2.3             subdivisions 3 and 13; 256.74, subdivision 1, and by 
  2.4             adding a subdivision; 256.76, subdivision 1; 256.8711; 
  2.5             256.9353, subdivision 8; 256.9365; 256.9685, 
  2.6             subdivision 1b, and by adding subdivisions; 256.969, 
  2.7             subdivisions 1, 9, 10, 16, and by adding subdivisions; 
  2.8             256.98, subdivisions 1 and 8; 256.983, subdivision 4, 
  2.9             and by adding a subdivision; 256B.042, subdivision 2; 
  2.10            256B.055, subdivision 12; 256B.056, subdivision 4, and 
  2.11            by adding a subdivision; 256B.0575; 256B.059, 
  2.12            subdivisions 1, 3, and 5; 256B.0595, subdivisions 1, 
  2.13            2, 3, and 4; 256B.06, subdivision 4; 256B.0625, 
  2.14            subdivisions 5, 8, 8a, 13, 13a, 18, 19a, 25, 37, and 
  2.15            by adding subdivisions; 256B.0627, subdivisions 1, 2, 
  2.16            4, and 5; 256B.0628, subdivision 2, and by adding a 
  2.17            subdivision; 256B.0641, subdivision 1; 256B.0911, 
  2.18            subdivisions 2, 2a, 3, 4, and 7; 256B.0913, 
  2.19            subdivisions 4, 5, 8, 12, 14, and by adding a 
  2.20            subdivision; 256B.0915, subdivisions 2, 3, 5, and by 
  2.21            adding a subdivision; 256B.092, subdivision 4, and by 
  2.22            adding a subdivision; 256B.093, subdivisions 1, 2, 3, 
  2.23            and by adding a subdivision; 256B.15, subdivisions 1a, 
  2.24            2, and by adding a subdivision; 256B.19, subdivision 
  2.25            1c; 256B.431, subdivisions 2b, 2j, 15, 17, and by 
  2.26            adding a subdivision; 256B.432, subdivisions 1, 2, 3, 
  2.27            5, and 6; 256B.49, subdivision 1; 256B.501, 
  2.28            subdivisions 1, 3, 3c, 3g, 8, and by adding 
  2.29            subdivisions; 256B.69, subdivisions 4, 5, 6, 9, and by 
  2.30            adding subdivisions; 256D.02, subdivision 5; 256D.03, 
  2.31            subdivisions 3, 3b, and 4; 256D.05, subdivision 7; 
  2.32            256D.36, subdivision 1; 256D.385; 256D.405, 
  2.33            subdivision 3; 256D.425, subdivision 1, and by adding 
  2.34            a subdivision; 256D.435, subdivisions 1, 3, 4, 5, 6, 
  2.35            and by adding a subdivision; 256D.44, subdivisions 1, 
  2.36            2, 3, 4, 5, and 6; 256D.45, subdivision 1; 256D.46, 
  2.37            subdivisions 1 and 2; 256D.48, subdivision 1; 256E.08, 
  2.38            subdivision 8; 256E.115; 256F.01; 256F.02; 256F.03, 
  2.39            subdivision 5, and by adding a subdivision; 256F.04, 
  2.40            subdivisions 1 and 2; 256F.05, subdivisions 2, 3, 4, 
  2.41            5, 7, 8, and by adding a subdivision; 256F.06, 
  2.42            subdivisions 1, 2, and 4; 256F.09; 256H.01, 
  2.43            subdivisions 9 and 12; 256H.02; 256H.03, subdivisions 
  2.44            1, 2a, 4, 6, and by adding a subdivision; 256H.05, 
  2.45            subdivision 6; 256H.08; 256H.11, subdivision 1; 
  2.46            256H.12, subdivision 1, and by adding a subdivision; 
  2.47            256H.15, subdivision 1; 256H.18; 256H.20, subdivision 
  2.48            3a; 256I.03, subdivision 5, and by adding a 
  2.49            subdivision; 256I.04; 256I.05, subdivisions 1, 1a, and 
  2.50            5; 256I.06, subdivisions 2 and 6; 257.3571, 
  2.51            subdivision 1; 257.3572; 257.3577, subdivision 1; 
  2.52            257.55, subdivision 1; 257.57, subdivision 2; 257.62, 
  2.53            subdivisions 1, 5, and 6; 257.64, subdivision 3; 
  2.54            257.69, subdivisions 1 and 2; 393.07, subdivision 10; 
  2.55            447.32, subdivision 5; 518.171, subdivisions 1, 3, 4, 
  2.56            5, 7, and 8; 518.611, subdivisions 2 and 4; 518.613, 
  2.57            subdivision 7; 518.615, subdivision 3; 524.6-207; 
  2.58            550.37, subdivision 14; Laws 1993, First Special 
  2.59            Session chapter 1, article 8, section 30, subdivision 
  2.60            2; proposing coding for new law in Minnesota Statutes, 
  2.61            chapters 144; 145; 157; 245; 245A; 252; 256; and 256B; 
  2.62            proposing coding for new law as Minnesota Statutes, 
  2.63            chapters 144D; and 144E; repealing Minnesota Statutes 
  2.64            1994, sections 38.161; 38.162; 62C.141; 62C.143; 
  2.65            62D.106; 62E.04, subdivisions 9 and 10; 144.0723, 
  2.66            subdivision 5; 144.8097; 144A.073, subdivision 3a; 
  2.67            157.01; 157.02; 157.031; 157.04; 157.045; 157.05; 
  2.68            157.08; 157.12; 157.13; 157.14; 252.27, subdivision 
  2.69            2c; 252.275, subdivisions 4a and 10; 252.47; 256.851; 
  2.70            256.969, subdivision 24; 256B.501, subdivisions 3d, 
  2.71            3e, and 3f; 256D.35, subdivisions 14 and 19; 256D.36, 
  3.1             subdivision 1a; 256D.37; 256D.425, subdivision 3; 
  3.2             256D.435, subdivisions 2, 7, 8, 9, and 10; 256D.44, 
  3.3             subdivision 7; 256F.05, subdivisions 2a and 4a; 
  3.4             256F.06, subdivision 3; and 256H.03, subdivisions 2 
  3.5             and 5. 
  3.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  3.7                              ARTICLE 1
  3.8                            APPROPRIATIONS 
  3.9   Section 1.  [HUMAN SERVICES APPROPRIATIONS.] 
  3.10     The sums shown in the columns marked "APPROPRIATIONS" are 
  3.11  appropriated from the general fund, or any other fund named, to 
  3.12  the agencies and for the purposes specified in the following 
  3.13  sections of this article, to be available for the fiscal years 
  3.14  indicated for each purpose.  The figures "1996" and "1997" where 
  3.15  used in this article, mean that the appropriation or 
  3.16  appropriations listed under them are available for the fiscal 
  3.17  year ending June 30, 1996, or June 30, 1997, respectively.  
  3.18  Where a dollar amount appears in parentheses, it means a 
  3.19  reduction of an appropriation.  
  3.20                          SUMMARY BY FUND
  3.21  APPROPRIATIONS                                      BIENNIAL
  3.22                            1996          1997           TOTAL
  3.23  General          $2,416,186,000 $2,601,088,000 $5,017,274,000
  3.24  State Government
  3.25  Special Revenue      25,546,000     26,056,000     51,602,000
  3.26  Metropolitan Landfill Contingency
  3.27  Action Fund             193,000        193,000        386,000
  3.28  Trunk Highway         1,513,000      1,513,000      3,026,000
  3.29  Special Revenue       5,256,000      5,350,000     10,606,000
  3.30  TOTAL            $2,448,694,000 $2,634,200,000 $5,082,894,000
  3.31                                             APPROPRIATIONS 
  3.32                                         Available for the Year 
  3.33                                             Ending June 30 
  3.34                                            1996         1997 
  3.35  Sec. 2.  COMMISSIONER OF 
  3.36  HUMAN SERVICES 
  3.37  Subdivision 1.  Appropriation by Fund
  3.38  General Fund
  3.39   2,339,272,000  2,523,000,000
  3.40  Subd. 2.  Finance and Management
  3.41  General
  4.1       22,263,000     23,455,000
  4.2   [STATE TAKEOVER ACCELERATION.] 
  4.3   Notwithstanding Minnesota Statutes, 
  4.4   section 256.025, $800,000 of the funds 
  4.5   appropriated for fiscal year 1996 under 
  4.6   Minnesota Statutes, section 256.026, 
  4.7   shall be used to reimburse the county 
  4.8   share of project STRIDE case management 
  4.9   and work readiness employment and 
  4.10  training services for the first six 
  4.11  months of calendar year 1995. 
  4.12  [RECEIPTS FOR SYSTEMS PROJECTS.] 
  4.13  Appropriations and federal receipts for 
  4.14  information system projects for MAXIS, 
  4.15  electronic benefit system, social 
  4.16  services information system, child 
  4.17  support enforcement, and Minnesota 
  4.18  medicaid information system (MMIS II) 
  4.19  must be deposited in the state system 
  4.20  account authorized in Minnesota 
  4.21  Statutes, section 256.014.  Money 
  4.22  appropriated for computer projects 
  4.23  approved by the information policy 
  4.24  office, funded by the legislature, and 
  4.25  approved by the commissioner of finance 
  4.26  may be transferred from one project to 
  4.27  another and from development to 
  4.28  operations as the commissioner of human 
  4.29  services considers necessary.  Any 
  4.30  unexpended balance in the appropriation 
  4.31  for these projects does not cancel but 
  4.32  is available for ongoing development 
  4.33  and operations. 
  4.34  [COMMUNICATION COSTS.] The commissioner 
  4.35  of human services shall continue to 
  4.36  operate the special revenue fund 
  4.37  account established in Laws 1993, First 
  4.38  Special Session chapter 1, article 1, 
  4.39  section 2, subdivision 2, to manage 
  4.40  shared communication costs necessary 
  4.41  for the operation of the programs the 
  4.42  commissioner supervises.  The 
  4.43  commissioner may distribute the costs 
  4.44  of operating and maintaining 
  4.45  communication systems to participants 
  4.46  in a manner that reflects actual system 
  4.47  usage.  Costs may include acquisition, 
  4.48  licensing, insurance, maintenance, 
  4.49  repair, staff time, and other direct 
  4.50  costs as determined by the 
  4.51  commissioner.  The commissioner may 
  4.52  accept on behalf of the state any gift, 
  4.53  bequest, devise, or personal property 
  4.54  of any kind or money tendered to the 
  4.55  state for any purpose pertaining to the 
  4.56  communication activities of the 
  4.57  department.  Any money so received must 
  4.58  be deposited in the state communication 
  4.59  systems account.  Money collected by 
  4.60  the commissioner for the use of 
  4.61  communication systems must be deposited 
  4.62  in the state communication systems 
  4.63  account and is appropriated to the 
  4.64  commissioner for purposes of this 
  4.65  section. 
  4.66  [ISSUANCE OPERATIONS CENTER.] Payments 
  4.67  to the commissioner of human services 
  5.1   from other governmental units and 
  5.2   private enterprises for (1) services 
  5.3   performed by the issuance operations 
  5.4   center or (2) reports generated by the 
  5.5   payment and eligibility systems must be 
  5.6   deposited in the state systems account 
  5.7   authorized in Minnesota Statutes, 
  5.8   section 256.014.  These payments are 
  5.9   appropriated to the commissioner for 
  5.10  the operation of the issuance center or 
  5.11  system, in accordance with Minnesota 
  5.12  Statutes, section 256.014. 
  5.13  [SOCIAL SERVICES INFORMATION PROJECT.] 
  5.14  If the commissioner of human services 
  5.15  proceeds with the development and 
  5.16  implementation of the social services 
  5.17  information system (SSIS), the 
  5.18  commissioner shall report annually by 
  5.19  February 1 on the status of the project 
  5.20  to the chairs of the house health and 
  5.21  human services committee and of the 
  5.22  senate health care and family services 
  5.23  committees.  This report must include 
  5.24  an explanation of the linkages between 
  5.25  the SSIS and the MAXIS and MMIS 
  5.26  computer systems.  The SSIS project 
  5.27  must not result in an increase in the 
  5.28  permanent staff of the department of 
  5.29  human services. 
  5.30  [COUNCIL ON DISABILITY.] Of this 
  5.31  appropriation $200,000 is appropriated 
  5.32  from the general fund to the council on 
  5.33  disability for fiscal year 1996, for 
  5.34  the purposes of a grant to the Fergus 
  5.35  Falls Center for the Arts, Inc. to 
  5.36  complete renovations of a local theater 
  5.37  necessary to bring it into compliance 
  5.38  with the federal Americans with 
  5.39  Disabilities Act. 
  5.40  [PRINTING COSTS.] In order to reduce 
  5.41  printing costs, the commissioner of 
  5.42  human services shall solicit bids for 
  5.43  printing from inmate work programs 
  5.44  operated by the department of 
  5.45  corrections. 
  5.46  Subd. 3.  Life Skills 
  5.47  Self-Sufficiency 
  5.48  General
  5.49      64,503,000    120,872,000
  5.50  [SILS TRANSFER.] (a) For the purpose of 
  5.51  transferring certain persons from the 
  5.52  semi-independent living services (SILS) 
  5.53  program to the home and community-based 
  5.54  waivered services program for persons 
  5.55  with mental retardation or related 
  5.56  conditions, the amount of funds 
  5.57  transferred between the SILS account or 
  5.58  the state community social services 
  5.59  account and the state medical 
  5.60  assistance account shall be based on 
  5.61  each county's participation in 
  5.62  transferring persons to the waivered 
  5.63  services program.  No person for whom 
  5.64  these funds are transferred shall be 
  6.1   required to obtain a new living 
  6.2   arrangement, notwithstanding Minnesota 
  6.3   Statutes, section 252.28, subdivision 
  6.4   3, paragraph (4), and Minnesota Rules, 
  6.5   parts 9525.1800, subpart 25a, and 
  6.6   9525.1869, subpart 6.  When supported 
  6.7   living services are provided to persons 
  6.8   for whom these funds are transferred, 
  6.9   the commissioner may substitute the 
  6.10  licensing standards of Minnesota Rules, 
  6.11  parts 9525.0500 to 9525.0660, for parts 
  6.12  9525.2000 to 9525.2140, if the services 
  6.13  remain nonresidential as defined in 
  6.14  Minnesota Statutes, section 245A.02, 
  6.15  subdivision 10.  For the purposes of 
  6.16  Minnesota Statutes, chapter 256G, when 
  6.17  a service is provided under these 
  6.18  substituted licensing standards, the 
  6.19  status of residence of the recipient of 
  6.20  that service shall continue to be 
  6.21  considered excluded time.  
  6.22  (b) Contingent upon continuing federal 
  6.23  approval of expanding eligibility for 
  6.24  home and community-based services for 
  6.25  persons with mental retardation or 
  6.26  related conditions, the commissioner 
  6.27  shall reduce the state SILS payments to 
  6.28  each county by the total medical 
  6.29  assistance expenditures for 
  6.30  nonresidential services attributable to 
  6.31  former SILS recipients transferred by 
  6.32  the county to the home and 
  6.33  community-based services program for 
  6.34  persons with mental retardation or 
  6.35  related conditions.  Of the reduced 
  6.36  SILS payments determined above, the 
  6.37  commissioner shall transfer to the 
  6.38  state medical assistance account an 
  6.39  amount equal to the nonfederal share of 
  6.40  the nonresidential services under the 
  6.41  home and community-based services for 
  6.42  persons with mental retardation or 
  6.43  related conditions.  Of the remaining 
  6.44  reduced SILS payments, 80 percent shall 
  6.45  be returned to the SILS grant program 
  6.46  to provide additional SILS services and 
  6.47  20 percent shall be transferred to the 
  6.48  general fund. 
  6.49  [LOCAL PLANNING GRANTS.] Money 
  6.50  appropriated for local planning grants 
  6.51  as part of developmental disabilities 
  6.52  pilot programs in fiscal year 1996 does 
  6.53  not cancel, but is available for the 
  6.54  same purpose in fiscal year 1997. 
  6.55  [NEW ICF/MR.] For the fiscal year 
  6.56  ending June 30, 1996, a newly 
  6.57  constructed or newly established 
  6.58  intermediate care facility for persons 
  6.59  with mental retardation that is 
  6.60  developed and financed during that 
  6.61  period shall not be subject to the 
  6.62  equity requirements in Minnesota 
  6.63  Statutes, section 256B.501, subdivision 
  6.64  11, paragraph (d), or to Minnesota 
  6.65  Rules, part 9553.0060, subpart 3, item 
  6.66  F, provided that the provider's 
  6.67  interest rate does not exceed the 
  6.68  interest rate available through state 
  7.1   agency tax exempt financing. 
  7.2   [ICF/MR RECEIVERSHIP.] For the fiscal 
  7.3   year ending June 30, 1996, if a 
  7.4   facility which is in receivership under 
  7.5   Minnesota Statutes, section 245A.12 or 
  7.6   245A.13, is sold to an unrelated 
  7.7   organization:  (a) the facility shall 
  7.8   be considered a newly established 
  7.9   facility for rate setting purposes, 
  7.10  notwithstanding any provisions to the 
  7.11  contrary in Minnesota Statutes, section 
  7.12  256B.501, subdivision 11; and (b) the 
  7.13  facility's historical basis for the 
  7.14  physical plant, land, and land 
  7.15  improvements for each facility must not 
  7.16  exceed the prior owner's aggregate 
  7.17  historical basis for these same assets 
  7.18  for each facility.  The allocation of 
  7.19  the purchase price between land, land 
  7.20  improvements, and physical plant shall 
  7.21  be based on the real estate appraisal 
  7.22  using the depreciated replacement cost 
  7.23  method. 
  7.24  [CHEMICAL DEPENDENCY RATE FREEZE.] 
  7.25  Beginning January 1, 1996, rates for 
  7.26  chemical dependency treatment services 
  7.27  provided according to Minnesota 
  7.28  Statutes, chapter 254B, shall be the 
  7.29  same as those rates negotiated 
  7.30  according to Minnesota Statutes, 
  7.31  section 254B.03, subdivision 1, 
  7.32  paragraph (b), and effective January 1, 
  7.33  1995.  Rates for vendors under 
  7.34  Minnesota Statutes, chapter 254B, who 
  7.35  are enrolled after January 1, 1995, 
  7.36  shall not be higher than the statewide 
  7.37  average rate for vendors licensed at 
  7.38  the same level of care.  Counties and 
  7.39  providers shall not negotiate an 
  7.40  increase in rates between January 1, 
  7.41  1995, and December 31, 1997. 
  7.42  [GRH TO CSSA TRANSFER.] For the fiscal 
  7.43  year ending June 30, 1995, the 
  7.44  commissioner may transfer funds from 
  7.45  the group residential housing (GRH) 
  7.46  account to county community social 
  7.47  services act (CSSA) grants to provide 
  7.48  continuous funding for persons no 
  7.49  longer eligible for GRH payments for 
  7.50  the following reasons:  they reside in 
  7.51  a setting with only a semi-independent 
  7.52  living services license; or they reside 
  7.53  in family foster care settings and have 
  7.54  become ineligible for GRH difficulty of 
  7.55  care payments due to receipt of mental 
  7.56  retardation/related conditions waivered 
  7.57  services.  The amount to be transferred 
  7.58  must not exceed the amount of GRH 
  7.59  payments for actual residents in the 
  7.60  affected GRH settings during the fiscal 
  7.61  year 1995.  The amount transferred is 
  7.62  to be added to the affected county's 
  7.63  CSSA base.  This paragraph is effective 
  7.64  the day following final enactment. 
  7.65  [COUNTY MAINTENANCE-MEALS-AGING.] The 
  7.66  supplemental funding for nutrition 
  7.67  programs serving counties where 
  8.1   congregate and home-delivered meals 
  8.2   were locally financed prior to 
  8.3   participation in the nutrition program 
  8.4   of the Older Americans Act shall be 
  8.5   awarded at no less than the same levels 
  8.6   as in fiscal year 1995. 
  8.7   [SOCS FUNDING CARRYOVER.] Any 
  8.8   unexpended funds from the fiscal year 
  8.9   1994-1995 biennium in the SOCS 
  8.10  supplemental appropriation shall be 
  8.11  carried over to the fiscal year 
  8.12  1996-1997 biennium and may be used to 
  8.13  finance the cost of development of SOCS.
  8.14  Subd. 4.  Children's Program  
  8.15  General
  8.16      20,335,000     22,170,000
  8.17  [FAMILY SERVICES COLLABORATIVE.] Plans 
  8.18  for the expenditure of funds for family 
  8.19  services collaboratives must be 
  8.20  approved by the children's cabinet 
  8.21  according to criteria in Minnesota 
  8.22  Statutes, section 121.8355.  Money 
  8.23  appropriated for these purposes may be 
  8.24  expended in either year of the 
  8.25  biennium.  Money appropriated for 
  8.26  family services collaboratives is also 
  8.27  available for start-up grants for 
  8.28  children's mental health collaboratives.
  8.29  [HIPPY CARRY FORWARD.] $50,000 in 
  8.30  unexpended money appropriated in fiscal 
  8.31  year 1995 for the Home Instruction 
  8.32  Program for Preschool Youngsters 
  8.33  (HIPPY) in Laws 1994, chapter 636, 
  8.34  article 1, section 11, does not cancel 
  8.35  but is available for the same purposes 
  8.36  in fiscal year 1996. 
  8.37  [COMMUNITY COLLABORATIVE MATCHING 
  8.38  GRANT.] Of this amount, $75,000 is 
  8.39  available in fiscal year 1996 for the 
  8.40  commissioner of human services to 
  8.41  provide a matching grant for community 
  8.42  collaborative projects for children and 
  8.43  youth developed by a regional 
  8.44  organization established under 
  8.45  Minnesota Statutes, section 116N.08, to 
  8.46  receive rural development challenge 
  8.47  grants.  The regional organization must 
  8.48  include a broad cross-section of public 
  8.49  and private sector community 
  8.50  representatives to develop programs, 
  8.51  services or facilities to address 
  8.52  specific community needs of children 
  8.53  and youth.  The regional organization 
  8.54  must also provide a two-to-one match of 
  8.55  nonstate dollars for this grant. 
  8.56  [INDIAN CHILD WELFARE GRANTS.] $100,000 
  8.57  is appropriated from the general fund 
  8.58  to the commissioner of human services 
  8.59  for the purposes of providing 
  8.60  compliance grants to an Indian child 
  8.61  welfare defense corporation, pursuant 
  8.62  to Minnesota Statutes, section 
  8.63  257.3571, subdivision 2a, to be 
  9.1   available until June 30, 1997. 
  9.2   Subd. 5.  Economic Self-Sufficiency
  9.3   General
  9.4      311,172,000    312,922,000 
  9.5   [FOOD STAMP EMPLOYMENT AND TRAINING.] 
  9.6   Federal food stamp employment and 
  9.7   training funds are appropriated to the 
  9.8   commissioner of human services to 
  9.9   reimburse counties for food stamp 
  9.10  employment and training expenditures. 
  9.11  [CASH BENEFITS IN ADVANCE.] The 
  9.12  commissioner, with the advance approval 
  9.13  of the commissioner of finance, is 
  9.14  authorized to issue cash assistance 
  9.15  benefits up to two days before the 
  9.16  first day of each month, including two 
  9.17  days before the start of each state 
  9.18  fiscal year.  Of the money appropriated 
  9.19  for the aid to families with dependent 
  9.20  children program for fiscal year 1996, 
  9.21  $12,000,000 is available in fiscal year 
  9.22  1995.  If that amount is insufficient 
  9.23  for the costs incurred, an additional 
  9.24  amount of the fiscal year 1996 
  9.25  appropriation as needed may be 
  9.26  transferred with the advance approval 
  9.27  of the commissioner of finance.  This 
  9.28  paragraph is effective the day 
  9.29  following final enactment. 
  9.30  [MFIP TRANSFER.] Unexpended money 
  9.31  appropriated for the Minnesota family 
  9.32  investment plan in fiscal year 1996 
  9.33  does not cancel but is available for 
  9.34  those purposes in fiscal year 1997. 
  9.35  [PATERNITY ESTABLISHMENT.] Federal 
  9.36  matching funds from the hospital 
  9.37  acknowledgment reimbursement program 
  9.38  may be retained by the commissioner to 
  9.39  establish paternity in child support 
  9.40  cases.  These federal matching funds 
  9.41  are appropriated to the commissioner 
  9.42  and must be used for education and 
  9.43  public information concerning paternity 
  9.44  establishment and the prevention of 
  9.45  nonmarital births. 
  9.46  [CHILD SUPPORT INCENTIVES.] The 
  9.47  commissioner may transfer money 
  9.48  appropriated for child support 
  9.49  enforcement county performance 
  9.50  incentives for fiscal years 1996 and 
  9.51  1997 between county performance 
  9.52  incentive accounts.  Unexpended money 
  9.53  in fiscal year 1996 does not cancel but 
  9.54  is available for county performance 
  9.55  incentives in fiscal year 1997. 
  9.56  [PROGRAM INTEGRITY.] Unexpended money 
  9.57  appropriated for program integrity 
  9.58  initiatives in fiscal year 1996 does 
  9.59  not cancel but is available for this 
  9.60  purpose in fiscal year 1997. 
  9.61  [GA STANDARD.] The commissioner shall 
 10.1   set the monthly standard of assistance 
 10.2   for general assistance units consisting 
 10.3   of an adult recipient who is childless 
 10.4   and unmarried or living apart from his 
 10.5   or her parents or a legal guardian at 
 10.6   $203. 
 10.7   [AFDC SUPPLEMENTARY GRANTS.] Of the 
 10.8   appropriation for aid to families with 
 10.9   dependent children, the commissioner 
 10.10  shall provide supplementary grants not 
 10.11  to exceed $200,000 a year for aid to 
 10.12  families with dependent children.  The 
 10.13  commissioner shall include the 
 10.14  following costs in determining the 
 10.15  amount of the supplementary grants:  
 10.16  major home repairs, repair of major 
 10.17  home appliances, utility recaps, 
 10.18  supplementary dietary needs not covered 
 10.19  by medical assistance, and replacements 
 10.20  of furnishings and essential major 
 10.21  appliances. 
 10.22  [NEW CHANCE.] Of this appropriation, 
 10.23  $100,000 each year is for a grant to 
 10.24  the New Chance demonstration project 
 10.25  that provides comprehensive services to 
 10.26  young AFDC recipients who became 
 10.27  pregnant as teenagers and dropped out 
 10.28  of high school.  The commissioner shall 
 10.29  provide an annual report on the 
 10.30  progress of the demonstration project, 
 10.31  including specific data on participant 
 10.32  outcomes in comparison to a control 
 10.33  group that received no services.  The 
 10.34  commissioner shall also include 
 10.35  recommendations on whether strategies 
 10.36  or methods that have proven successful 
 10.37  in the demonstration project should be 
 10.38  incorporated into the STRIDE employment 
 10.39  program for AFDC recipients. 
 10.40  [MN ENABL.] Money is appropriated to 
 10.41  the commissioner of human services in 
 10.42  accordance with this paragraph, to be 
 10.43  transferred to the commissioner of 
 10.44  health during the fiscal year ending 
 10.45  June 30, 1997, for the development and 
 10.46  implementation of the ENABL program. 
 10.47  The money to be transferred shall be 
 10.48  from that portion of the state share of 
 10.49  child support enforcement collections 
 10.50  received under section 256.74, 
 10.51  subdivision 5, in fiscal years 1996 and 
 10.52  1997, which exceeds the amount of 
 10.53  collections taken as AFDC savings in 
 10.54  the working papers of the house and 
 10.55  senate budget committees for the 
 10.56  biennium ending June 30, 1997.  The 
 10.57  commissioner shall not transfer more 
 10.58  than half of the excess collections, 
 10.59  nor more than $500,000 to the ENABL 
 10.60  program. 
 10.61  Subd. 6.  Health Care 
 10.62  General
 10.63   1,666,448,000  1,784,546,000 
 10.64  Notwithstanding Minnesota Statutes, 
 11.1   section 256.969, subdivisions 2, 2b, 
 11.2   2c, and 9, for admissions under the 
 11.3   general assistance medical care program 
 11.4   occurring on or after July 1, 1995, the 
 11.5   disproportionate population adjustment, 
 11.6   the relative values of the diagnostic 
 11.7   categories, and each hospital's 
 11.8   inpatient rates under the general 
 11.9   assistance medical care program, 
 11.10  excluding rehabilitation hospitals and 
 11.11  rehabilitation distinct part rates, 
 11.12  shall be established at the levels in 
 11.13  effect on December 31, 1994.  These 
 11.14  rates shall be increased by 7.55 
 11.15  percent.  Rates under the general 
 11.16  assistance medical care program shall 
 11.17  not be rebased to more current data on 
 11.18  January 1, 1997. 
 11.19  [PREADMISSION SCREENING TRANSFER.] 
 11.20  Effective the day following final 
 11.21  enactment, up to $40,000 of the 
 11.22  appropriation for preadmission 
 11.23  screening and alternative care for 
 11.24  fiscal year 1995 may be transferred to 
 11.25  the health care administration account 
 11.26  to pay the state's share of county 
 11.27  claims for conducting nursing home 
 11.28  assessments for persons with mental 
 11.29  illness or mental retardation as 
 11.30  required by Public Law Number 100-203. 
 11.31  [ALTERNATIVE CARE TRANSFER.] Any money 
 11.32  allocated to the alternative care 
 11.33  program that is not spent for the 
 11.34  purposes indicated does not cancel but 
 11.35  shall be transferred to the medical 
 11.36  assistance account. 
 11.37  [PREADMISSION SCREENING RATE.] The 
 11.38  preadmission screening payment to all 
 11.39  counties shall continue at the payment 
 11.40  amount in effect for fiscal year 1995. 
 11.41  [PAS/AC APPROPRIATION.] Money 
 11.42  appropriated for preadmission screening 
 11.43  and the alternative care program for 
 11.44  fiscal year 1997 may be used for these 
 11.45  purposes in fiscal year 1996. 
 11.46  [SAIL TRANSFER.] Appropriations for 
 11.47  administrative costs associated with 
 11.48  the senior's agenda for independent 
 11.49  living (SAIL) program may be 
 11.50  transferred to SAIL grants as the 
 11.51  commissioner determines necessary to 
 11.52  facilitate the delivery of the program. 
 11.53  [ADDITIONAL WAIVERED SERVICES.] The 
 11.54  commissioner shall seek the necessary 
 11.55  amendments to home and community-based 
 11.56  waiver programs to provide, to the 
 11.57  extent possible, services to persons no 
 11.58  longer eligible to receive personal 
 11.59  care assistant services due to the 
 11.60  restructuring of that program.  After 
 11.61  serving persons moved from the personal 
 11.62  care assistant program to a home and 
 11.63  community-based waiver program, any 
 11.64  additional allocations made available 
 11.65  due to these requests for additional 
 12.1   home and community-based services may 
 12.2   be directed to persons eligible for 
 12.3   home and community-based services who 
 12.4   were receiving personal care assistant 
 12.5   services prior to the restructuring of 
 12.6   that program.  After serving persons 
 12.7   moved to home and community-based 
 12.8   services, the commissioner may transfer 
 12.9   any remaining additional funds made 
 12.10  available for alternative services for 
 12.11  these persons between the medical 
 12.12  assistance grant and mental health 
 12.13  grant accounts as necessary in order to 
 12.14  serve people with mental health needs. 
 12.15  [CONSUMER SATISFACTION SURVEY.] Any 
 12.16  federal matching money received through 
 12.17  the medical assistance program for the 
 12.18  consumer satisfaction survey is 
 12.19  appropriated to the commissioner for 
 12.20  this purpose.  The commissioner may 
 12.21  expend the money appropriated for the 
 12.22  consumer satisfaction survey in either 
 12.23  year of the biennium. 
 12.24  [LONG-TERM CARE OPTIONS PROJECT.] 
 12.25  Federal funds received by the 
 12.26  commissioner of human services for the 
 12.27  long-term care options project may be 
 12.28  transferred among object of expenditure 
 12.29  classifications as the commissioner 
 12.30  determines to be necessary for the 
 12.31  implementation of the project. 
 12.32  [SURCHARGE COMPLIANCE.] In the event 
 12.33  that federal financial participation in 
 12.34  the Minnesota medical assistance 
 12.35  program is reduced as a result of a 
 12.36  determination that Minnesota is out of 
 12.37  compliance with Public Law Number 
 12.38  102-234 or its implementing regulations 
 12.39  or with any other federal law designed 
 12.40  to restrict provider tax programs or 
 12.41  intergovernmental transfers, the 
 12.42  commissioner shall appeal the 
 12.43  determination to the fullest extent 
 12.44  permitted by law and may ratably reduce 
 12.45  all medical assistance and general 
 12.46  assistance medical care payments to 
 12.47  providers in order to eliminate any 
 12.48  shortfall resulting from the reduced 
 12.49  federal funding.  Any amount later 
 12.50  recovered through the appeals process 
 12.51  shall be used to reimburse providers 
 12.52  for any ratable reductions taken. 
 12.53  [MANAGED CARE.] For the biennium ending 
 12.54  June 30, 1997, the nonfederal share of 
 12.55  the Prepaid Medical Assistance Program 
 12.56  funds, which have been appropriated to 
 12.57  fund county managed care advocacy and 
 12.58  enrollment operating costs, shall be 
 12.59  disbursed as grants using either a 
 12.60  reimbursement or block grant mechanism. 
 12.61  [COMPULSIVE GAMBLING.] (a) Of the 1995 
 12.62  appropriation for the compulsive 
 12.63  gambling program under Laws 1994, 
 12.64  chapter 633, article 8, section 8, 
 12.65  subdivision 1, up to $175,000 does not 
 12.66  cancel but shall remain available for 
 13.1   the development and implementation of 
 13.2   outcome evaluation, treatment 
 13.3   effectiveness research in the biennium 
 13.4   ending June 30, 1997. 
 13.5   (b) Only contributions to the 
 13.6   compulsive gambling program may be 
 13.7   carried forward between fiscal years or 
 13.8   from biennium to biennium. 
 13.9   (c) Paragraphs (a) and (b) are 
 13.10  effective the day following final 
 13.11  enactment. 
 13.12  [HOSPITAL CONVERSION.] Of this sum, the 
 13.13  commissioner of health shall provide 
 13.14  $25,000 to a 28-bed hospital located in 
 13.15  Chisago county, to enable that facility 
 13.16  to plan for closure and conversion, in 
 13.17  partnership with other entities, in 
 13.18  order to offer outpatient and emergency 
 13.19  services at the site. 
 13.20  [REPORT ON ADMINISTRATIVE USE OF SENIOR 
 13.21  NUTRITION FUNDS.] The division of aging 
 13.22  and adult services in the department of 
 13.23  human services shall prepare a report 
 13.24  on federal and state funding for senior 
 13.25  nutrition programs.  The report shall 
 13.26  include information on the most recent 
 13.27  five federal and state fiscal years for 
 13.28  which data is available, including 
 13.29  information on amounts used for 
 13.30  administrative purposes by the 
 13.31  Minnesota board on aging and area 
 13.32  agencies on aging.  The report shall 
 13.33  examine funding levels for senior 
 13.34  nutrition programs in all of the 
 13.35  regions of the state to determine if 
 13.36  funding has kept pace with local needs 
 13.37  and whether there has been any cost 
 13.38  shifting to local government units.  
 13.39  The report:  (1) shall include 
 13.40  information on the number of seniors 
 13.41  served in each nutrition program; and 
 13.42  (2) shall examine transportation and 
 13.43  other costs associated with the 
 13.44  programs; and (3) shall investigate 
 13.45  options for other services of funding.  
 13.46  The report shall be presented to the 
 13.47  legislature by February 16, 1996. 
 13.48  Subd. 7.  Community Mental Health
 13.49  and State-Operated Services
 13.50  General 
 13.51     254,551,000    259,035,000 
 13.52  [RELOCATIONS FROM FARIBAULT.] Of this 
 13.53  appropriation, $162,000 in fiscal year 
 13.54  1996 and $37,000 in fiscal year 1997 
 13.55  are for grants to counties for 
 13.56  discharge planning related to persons 
 13.57  with mental retardation or related 
 13.58  conditions being relocated from the 
 13.59  Faribault regional center to community 
 13.60  services. 
 13.61  [TRANSFERS TO MOOSE LAKE.] 
 13.62  Notwithstanding Minnesota Statutes, 
 14.1   sections 253B.18, subdivisions 4 and 6, 
 14.2   and 253B.185, subdivision 2, with the 
 14.3   establishment of the Minnesota sexual 
 14.4   psychopathic personality treatment 
 14.5   center, the commissioner is authorized 
 14.6   to transfer any person committed as a 
 14.7   psychopathic personality, sexual 
 14.8   psychopathic personality, or sexually 
 14.9   dangerous person, between the Minnesota 
 14.10  security hospital and the facility at 
 14.11  Moose Lake. 
 14.12  [RTC CHEMICAL DEPENDENCY PROGRAMS.] 
 14.13  When the operations of the regional 
 14.14  treatment center chemical dependency 
 14.15  fund created in Minnesota Statutes, 
 14.16  section 246.18, subdivision 2, are 
 14.17  impeded by projected cash deficiencies 
 14.18  resulting from delays in the receipt of 
 14.19  grants, dedicated income, or other 
 14.20  similar receivables, and when the 
 14.21  deficiencies would be corrected within 
 14.22  the budget period involved, the 
 14.23  commissioner of finance may transfer 
 14.24  general fund cash reserves into this 
 14.25  account as necessary to meet cash 
 14.26  demands.  The cash flow transfers must 
 14.27  be returned to the general fund in the 
 14.28  fiscal year that the transfer was 
 14.29  made.  Any interest earned on general 
 14.30  fund cash flow transfers accrues to the 
 14.31  general fund, and not to the regional 
 14.32  treatment center chemical dependency 
 14.33  fund. 
 14.34  [INFRASTRUCTURE REINVESTMENT.] $750,000 
 14.35  of the savings attributable to the 
 14.36  downsizing of the regional treatment 
 14.37  center shall be used by the 
 14.38  commissioner of human services for the 
 14.39  biennium ending June 30, 1997, for 
 14.40  grant funds to a local unit of 
 14.41  government for the development of 
 14.42  infrastructure, planning for 
 14.43  redevelopment, and to provide training 
 14.44  for workers dislocated by the 
 14.45  downsizing of a regional treatment 
 14.46  center. 
 14.47  [CAMP.] Money is appropriated from the 
 14.48  mental health special projects account 
 14.49  for adults and children with mental 
 14.50  illness from across the state, for a 
 14.51  camping program which utilizes the 
 14.52  Boundary Waters Canoe Area and is 
 14.53  cooperatively sponsored by client 
 14.54  advocacy, mental health treatment, and 
 14.55  outdoor recreation agencies. 
 14.56  [IMD DOWNSIZING FLEXIBILITY.] If a 
 14.57  county presents a budget-neutral plan 
 14.58  for a net reduction in the number of 
 14.59  institution for mental disease (IMD) 
 14.60  beds funded under group residential 
 14.61  housing, the commissioner may transfer 
 14.62  the net savings from group residential 
 14.63  housing and general assistance medical 
 14.64  care to medical assistance and mental 
 14.65  health grants to provide appropriate 
 14.66  services in non-IMD settings. 
 15.1   [REPAIRS AND BETTERMENTS.] The 
 15.2   commissioner may transfer unencumbered 
 15.3   appropriation balances between fiscal 
 15.4   years for the state residential 
 15.5   facilities repairs and betterments 
 15.6   account and special equipment. 
 15.7   [PROJECT LABOR.] Wages for project 
 15.8   labor may be paid by the commissioner 
 15.9   of human services out of repairs and 
 15.10  betterments money if the individual is 
 15.11  to be engaged in a construction project 
 15.12  or a repair project of short term and 
 15.13  nonrecurring nature.  Compensation for 
 15.14  project labor shall be based on the 
 15.15  prevailing wage rates, as defined in 
 15.16  Minnesota Statutes, section 177.42, 
 15.17  subdivision 6.  Project laborers are 
 15.18  excluded from the provisions of 
 15.19  Minnesota Statutes, sections 43A.22 to 
 15.20  43A.30, and shall not be eligible for 
 15.21  state-paid insurance and benefits. 
 15.22  Sec. 3.  COMMISSIONER OF HEALTH 
 15.23  Subdivision 1.  Total 
 15.24  Appropriation                         57,008,000     57,530,000
 15.25                Summary by Fund
 15.26  General              38,103,000    38,100,000
 15.27  Metropolitan Landfill
 15.28  Contingency Action Fund 193,000       193,000
 15.29  State Government
 15.30  Special Revenue      17,191,000    17,716,000
 15.31  Trunk Highway         1,513,000     1,513,000
 15.32  Special Revenue           8,000         8,000
 15.33  [LANDFILL CONTINGENCY.] The 
 15.34  appropriation from the metropolitan 
 15.35  landfill contingency action fund is for 
 15.36  monitoring well water supplies and 
 15.37  conducting health assessments in the 
 15.38  metropolitan area. 
 15.39  [TRUNK HIGHWAY FUND.] The appropriation 
 15.40  from the trunk highway fund is for 
 15.41  emergency medical services activities. 
 15.42  Subd. 2.  Health
 15.43  Systems Development                   28,012,000     27,893,000
 15.44                Summary by Fund
 15.45  General              27,583,000    27,463,000
 15.46  State Government
 15.47  Special Revenue         429,000       430,000
 15.48  [WIC TRANSFERS.] General fund 
 15.49  appropriations for the women, infants, 
 15.50  and children food supplement program 
 15.51  (WIC) are available for either year of 
 15.52  the biennium.  Transfers of 
 15.53  appropriations between fiscal years 
 15.54  must be for the purpose of maximizing 
 15.55  federal funds or minimizing 
 16.1   fluctuations in the number of 
 16.2   participants.  
 16.3   [NURSING HOME RESIDENTS EDUCATION.] Any 
 16.4   efforts undertaken by the Minnesota 
 16.5   departments of health or human services 
 16.6   to conduct periodic education programs 
 16.7   for nursing home residents shall build 
 16.8   on and be coordinated with the resident 
 16.9   and family advisory council education 
 16.10  program established in Minnesota 
 16.11  Statutes, section 144A.33. 
 16.12  [MATERNAL AND CHILD HEALTH.] In the 
 16.13  event that Minnesota is required to 
 16.14  comply with the provision in the 
 16.15  federal maternal and child health block 
 16.16  grant law, which requires 30 percent of 
 16.17  the allocation to be spent on primary 
 16.18  services for children, federal funds 
 16.19  allocated to the commissioner of health 
 16.20  under Minnesota Statutes, section 
 16.21  145.882, subdivision 2, may be 
 16.22  transferred to the commissioner of 
 16.23  human services for the purchase of 
 16.24  primary services for children covered 
 16.25  by MinnesotaCare.  The commissioner of 
 16.26  human services shall transfer an equal 
 16.27  amount of the money appropriated for 
 16.28  MinnesotaCare to the commissioner of 
 16.29  health to assure access to quality 
 16.30  child health services under Minnesota 
 16.31  Statutes, section 145.88. 
 16.32  [CARRYOVER.] General fund 
 16.33  appropriations for treatment services 
 16.34  in the services for children with 
 16.35  special health care needs program are 
 16.36  available for either year of the 
 16.37  biennium. 
 16.38  Subd. 3.  Health Quality
 16.39  Assurance                              8,178,000      8,559,000
 16.40                Summary by Fund
 16.41  General               1,135,000     1,135,000
 16.42  State Government
 16.43  Special Revenue       5,612,000     5,993,000
 16.44  Trunk Highway         1,431,000     1,431,000
 16.45  Subd. 4.  Health Protection           16,765,000     16,861,000
 16.46  [LEAD ABATEMENT.] $200,000 is 
 16.47  appropriated from the general fund to 
 16.48  the commissioner of health for the 
 16.49  biennium ending June 30, 1997, for the 
 16.50  purpose of administering lead abatement 
 16.51  activities.  Of this amount, $25,000 
 16.52  shall be used for the purposes of 
 16.53  lead-safe housing, and $25,000 shall be 
 16.54  used for the purposes of lead cleanup 
 16.55  equipment. 
 16.56                Summary by Fund
 16.57  General               6,899,000     6,895,000
 16.58  State Government
 17.1   Special Revenue       9,687,000     9,787,000
 17.2   Metropolitan Landfill
 17.3   Contingency Action
 17.4   Fund                    171,000       171,000
 17.5   Special Revenue           8,000         8,000
 17.6   Subd. 5.  Management and
 17.7   Support Services                       4,012,000      4,176,000
 17.8                 Summary by Fund
 17.9   General               2,445,000     2,566,000
 17.10  Metropolitan Landfill
 17.11  Contingency Action Fund  22,000        22,000
 17.12  Trunk Highway            82,000        82,000
 17.13  State Government
 17.14  Special Revenue       1,463,000     1,463,000
 17.15  Sec. 4.  VETERANS NURSING
 17.16  HOMES BOARD                           17,966,000     18,643,000
 17.17  [SPECIAL REVENUE ACCOUNT.] The general 
 17.18  fund appropriations made to the 
 17.19  veterans homes board shall be 
 17.20  transferred to a veterans homes special 
 17.21  revenue account in the special revenue 
 17.22  fund in the same manner as other 
 17.23  receipts are deposited in accordance 
 17.24  with Minnesota Statutes, section 
 17.25  198.34, and are appropriated to the 
 17.26  veterans homes board of directors for 
 17.27  the operation of board facilities and 
 17.28  programs. 
 17.29  [SETTING THE COST OF CARE.] The 
 17.30  veterans homes board may set the cost 
 17.31  of care at the Silver Bay and Luverne 
 17.32  facilities based on the cost of average 
 17.33  skilled nursing care provided to 
 17.34  residents of the Minneapolis veterans 
 17.35  home for fiscal year 1996. 
 17.36  [ROOMS WITH MORE THAN FOUR BEDS.] (a) 
 17.37  Until June 30, 1996, the commissioner 
 17.38  of health shall not apply the 
 17.39  provisions of Minnesota Statutes, 
 17.40  section 144.55, subdivision 6, 
 17.41  paragraph (b), to the Minnesota 
 17.42  veterans home at Hastings. 
 17.43  (b) The veterans homes board may not 
 17.44  admit residents into the domiciliary 
 17.45  beds at the Minnesota veterans home at 
 17.46  Hastings before October 1, 1995. 
 17.47  [LICENSED CAPACITY.] The department of 
 17.48  health shall not reduce the licensed 
 17.49  bed capacity for the Minneapolis 
 17.50  veterans home pending completion of the 
 17.51  project authorized by Laws 1990, 
 17.52  chapter 610, article 1, section 9, 
 17.53  subdivision 3, unless the federal grant 
 17.54  for the project is not awarded. 
 17.55  [VETERANS NURSING HOMES BOARD; 
 17.56  ALLOWANCE FOR FOOD.] The allowance for 
 18.1   food may be adjusted annually to 
 18.2   reflect changes in the producer price 
 18.3   index, as prepared by the United States 
 18.4   Bureau of Labor Statistics, with the 
 18.5   approval of the commissioner of 
 18.6   finance.  Adjustments for fiscal year 
 18.7   1996 and fiscal year 1997 must be based 
 18.8   on the June 1994 and June 1995 producer 
 18.9   price index respectively, but the 
 18.10  adjustment must be prorated if it would 
 18.11  require money in excess of the 
 18.12  appropriation. 
 18.13  [FERGUS FALLS.] Of this appropriation, 
 18.14  if a federal grant for the construction 
 18.15  of the Fergus Falls veterans home is 
 18.16  received before the start of the 1996 
 18.17  legislative session, the veterans homes 
 18.18  board of directors may use up to 
 18.19  $150,000 to fund positions and support 
 18.20  services to coordinate and oversee the 
 18.21  construction of the home and to begin 
 18.22  planning for the opening of the 
 18.23  facility. 
 18.24  Sec. 5.  HEALTH-RELATED BOARDS 
 18.25  Subdivision 1.  Total     
 18.26  Appropriation                          8,355,000      8,340,000 
 18.27  [SPECIAL REVENUE FUND.] The 
 18.28  appropriations in this section are from 
 18.29  the state government special revenue 
 18.30  fund. 
 18.31  [NO SPENDING IN EXCESS OF REVENUES.] 
 18.32  The commissioner of finance shall not 
 18.33  permit the allotment, encumbrance, or 
 18.34  expenditure of money appropriated in 
 18.35  this section in excess of the 
 18.36  anticipated biennial revenues from fees 
 18.37  collected by the boards.  Neither this 
 18.38  provision nor Minnesota Statutes, 
 18.39  section 214.06, applies to transfers 
 18.40  from the general contingent account, if 
 18.41  the amount transferred does not exceed 
 18.42  the amount of surplus revenue 
 18.43  accumulated by the transferee during 
 18.44  the previous five years. 
 18.45  Subd. 2.  Board of Chiropractic 
 18.46  Examiners                                309,000        313,000
 18.47  Subd. 3.  Board of Dentistry             698,000        708,000
 18.48  Subd. 4.  Board of Dietetic
 18.49  and Nutrition Practice                    63,000         64,000
 18.50  Subd. 5.  Board of Marriage and 
 18.51  Family Therapy                            95,000         96,000
 18.52  Subd. 6.  Board of Medical  
 18.53  Practice                               3,204,000      3,204,000
 18.54  Subd. 7.  Board of Nursing             1,710,000      1,714,000
 18.55  [BOARD OF NURSING.] Of this 
 18.56  appropriation from the state government 
 18.57  special revenue fund, $548,000 the 
 18.58  first year and $295,000 the second year 
 18.59  is to implement the discipline and 
 19.1   licensing systems project as 
 19.2   recommended by the Information Policy 
 19.3   Office. 
 19.4   Subd. 8.  Board of Nursing 
 19.5   Home Administrators                      182,000        186,000
 19.6   Subd. 9.  Board of Optometry              78,000         79,000
 19.7   Subd. 10.  Board of Pharmacy             900,000        906,000
 19.8   Subd. 11.  Board of Podiatry              31,000         32,000
 19.9   Subd. 12.  Board of Psychology           393,000        396,000
 19.10  Subd. 13.  Board of Social Work          550,000        491,000
 19.11  Subd. 14.  Board of Veterinary 
 19.12  Medicine                                 142,000        151,000
 19.13  Sec. 6.  COUNCIL ON DISABILITY           675,000        681,000
 19.14  Sec. 7.  OMBUDSMAN FOR MENTAL 
 19.15  HEALTH AND MENTAL RETARDATION          1,132,000      1,097,000
 19.16  Sec. 8.  OMBUDSPERSON 
 19.17  FOR FAMILIES                             133,000        137,000
 19.18  Sec. 9.  TRANSFERS. 
 19.19  Subdivision 1.  Entitlement programs
 19.20  (a) Transfers in fiscal year 1995 
 19.21  Effective the day following final 
 19.22  enactment, the commissioner of human 
 19.23  services may transfer unencumbered 
 19.24  appropriation balances for fiscal year 
 19.25  1995 among the aid to families with 
 19.26  dependent children, aid to families 
 19.27  with dependent children child care, 
 19.28  Minnesota family investment plan, 
 19.29  general assistance, general assistance 
 19.30  medical care, medical assistance, 
 19.31  Minnesota supplemental aid, group 
 19.32  residential housing and work readiness 
 19.33  programs, and the entitlement portion 
 19.34  of the chemical dependency consolidated 
 19.35  treatment fund, with the approval of 
 19.36  the commissioner of finance after 
 19.37  notification of the chair of the senate 
 19.38  health care and family services finance 
 19.39  division and the chair of the house of 
 19.40  representatives health and human 
 19.41  services finance division. 
 19.42  (b) Transfers of unencumbered 
 19.43  entitled grant and aid appropriations 
 19.44  The commissioner of human services, 
 19.45  with the approval of the commissioner 
 19.46  of finance, and after notification of 
 19.47  the chair of the senate health care and 
 19.48  family services finance division and 
 19.49  the chair of the house of 
 19.50  representatives health and human 
 19.51  services finance division, may transfer 
 19.52  unencumbered appropriation balances for 
 19.53  the biennium ending June 30, 1997, 
 19.54  within fiscal years among the aid to 
 19.55  families with dependent children, aid 
 20.1   to families with dependent children 
 20.2   child care, Minnesota family investment 
 20.3   plan, general assistance, general 
 20.4   assistance medical care, medical 
 20.5   assistance, Minnesota supplemental aid, 
 20.6   group residential housing, and work 
 20.7   readiness programs, and the entitlement 
 20.8   portion of the chemical dependency 
 20.9   consolidated treatment fund, and 
 20.10  between fiscal years of the biennium. 
 20.11  Subd. 2.  Human Services 
 20.12  (a) Approval Required 
 20.13  Transfers may be made by the 
 20.14  commissioner of human services to 
 20.15  salary accounts, and unencumbered 
 20.16  salary money may be transferred to the 
 20.17  next fiscal year, in order to avoid 
 20.18  layoffs, with the advance approval of 
 20.19  the commissioner of finance and upon 
 20.20  notification of the chairs of the 
 20.21  senate health care and family services 
 20.22  finance division and the house of 
 20.23  representatives health and human 
 20.24  services finance division.  Amounts 
 20.25  transferred to fiscal year 1997 shall 
 20.26  not increase the base funding level for 
 20.27  the 1998-1999 appropriation.  The 
 20.28  commissioner shall not transfer money 
 20.29  to or from the object of expenditure 
 20.30  "grants and aid" without the written 
 20.31  approval of the governor after 
 20.32  consulting with the legislative 
 20.33  advisory commission. 
 20.34  (b) Transfers of Unencumbered 
 20.35  Appropriations 
 20.36  Nonsalary administrative money may be 
 20.37  transferred within the department of 
 20.38  human services as the commissioner 
 20.39  considers necessary, with the advance 
 20.40  approval of the commissioner of 
 20.41  finance.  The commissioner shall inform 
 20.42  the chairs of the health and human 
 20.43  services finance division of the house 
 20.44  of representatives and the health care 
 20.45  and family services division of the 
 20.46  senate quarterly about transfers made 
 20.47  under this provision. 
 20.48  Subd. 3.  Health 
 20.49  (a) Approval Required 
 20.50  Transfers may be made by the 
 20.51  commissioner of health to salary 
 20.52  accounts, and unencumbered salary money 
 20.53  may be transferred to the next fiscal 
 20.54  year, in order to avoid layoffs, with 
 20.55  the advance approval of the 
 20.56  commissioner of finance and upon 
 20.57  notification of the chairs of the 
 20.58  senate health care and family services 
 20.59  finance division and the house of 
 20.60  representatives health and human 
 20.61  services finance division.  Amounts 
 20.62  transferred to fiscal year 1997 shall 
 20.63  not increase the base funding level for 
 21.1   the 1998-1999 appropriation.  The 
 21.2   commissioner shall not transfer money 
 21.3   to or from the object of expenditure 
 21.4   "grants and aid" without the written 
 21.5   approval of the governor after 
 21.6   consulting with the legislative 
 21.7   advisory commission. 
 21.8   (b) Transfers of Unencumbered 
 21.9   Appropriations 
 21.10  Nonsalary administrative money may be 
 21.11  transferred within the department of 
 21.12  health as the commissioner considers 
 21.13  necessary, with the advance approval of 
 21.14  the commissioner of finance.  The 
 21.15  commissioner of health shall inform the 
 21.16  chairs of the health and human services 
 21.17  finance division of the house of 
 21.18  representatives and the health care and 
 21.19  family services division of the senate 
 21.20  quarterly about transfers made under 
 21.21  this provision. 
 21.22  Subd. 4.  Veterans Nursing Homes Board 
 21.23  (a) Approval Required 
 21.24  Transfers may be made by the veterans 
 21.25  nursing homes board to salary accounts, 
 21.26  and unencumbered salary money may be 
 21.27  transferred to the next fiscal year, in 
 21.28  order to avoid layoffs, with the 
 21.29  advance approval of the commissioner of 
 21.30  finance and upon notification of the 
 21.31  chairs of the senate health care and 
 21.32  family services finance division and 
 21.33  the house of representatives health and 
 21.34  human services finance division.  
 21.35  Amounts transferred to fiscal year 1997 
 21.36  shall not increase the base funding 
 21.37  level for the 1998-1999 appropriation.  
 21.38  The board shall not transfer money to 
 21.39  or from the object of expenditure 
 21.40  "grants and aid" without the written 
 21.41  approval of the governor after 
 21.42  consulting with the legislative 
 21.43  advisory commission. 
 21.44  (b) Transfers of Unencumbered 
 21.45  Appropriations 
 21.46  Nonsalary administrative money may be 
 21.47  transferred within the programs 
 21.48  operated by the veterans nursing homes 
 21.49  board as the board considers necessary, 
 21.50  with the advance approval of the 
 21.51  commissioner of finance.  The board 
 21.52  shall inform the chairs of the health 
 21.53  and human services finance division of 
 21.54  the house of representatives and the 
 21.55  health care and family services 
 21.56  division of the senate quarterly about 
 21.57  transfers made under this provision. 
 21.58  Subd. 5.  Transfer 
 21.59  Funding appropriated by the legislature 
 21.60  may not be transferred to a different 
 21.61  department than that specified by the 
 21.62  legislature without legislative 
 22.1   authority. 
 22.2   Sec. 10.  PROVISIONS 
 22.3   (a) Money appropriated to the 
 22.4   commissioner of human services for the 
 22.5   purchase of provisions within the item 
 22.6   "current expense" must be used solely 
 22.7   for that purpose.  Money provided and 
 22.8   not used for the purchase of provisions 
 22.9   must be canceled into the fund from 
 22.10  which appropriated, except that money 
 22.11  provided and not used for the purchase 
 22.12  of provisions because of population 
 22.13  decreases may be transferred and used 
 22.14  for the purchase of drugs and medical 
 22.15  and hospital supplies and equipment 
 22.16  with written approval of the governor 
 22.17  after consultation with the legislative 
 22.18  advisory commission. 
 22.19  (b) For fiscal year 1996 the allowance 
 22.20  for food may be adjusted to the 
 22.21  equivalent of the 75th percentile of 
 22.22  the comparable raw food costs for 
 22.23  community nursing homes as reported to 
 22.24  the commissioner of human services.  
 22.25  For fiscal year 1997 an adjustment may 
 22.26  be made to reflect the annual change in 
 22.27  the United States Bureau of Labor 
 22.28  Statistics producer price index as of 
 22.29  June 1996 with the approval of the 
 22.30  commissioner of finance.  The 
 22.31  adjustments for either year must be 
 22.32  prorated if they would require money in 
 22.33  excess of this appropriation. 
 22.34  Sec. 11.  TELECOMMUNICATION
 22.35  ACCESS FOR COMMUNICATION-IMPAIRED
 22.36  PERSONS BOARD                          5,248,000      5,342,000
 22.37  This appropriation is from the special 
 22.38  revenue fund. 
 22.39  Sec. 12.  CARRYOVER LIMITATION 
 22.40  None of the appropriations in this act 
 22.41  which are allowed to be carried forward 
 22.42  from fiscal year 1996 to fiscal year 
 22.43  1997 shall become part of the base 
 22.44  level funding for the 1997-1999 
 22.45  biennial budget, unless specifically 
 22.46  directed by the legislature. 
 22.47  Sec. 13.  SUNSET OF UNCODIFIED LANGUAGE 
 22.48  All uncodified language contained in 
 22.49  this article expires on June 30, 1997, 
 22.50  unless a different expiration is 
 22.51  explicit. 
 22.52                             ARTICLE 2
 22.53                   HUMAN SERVICES ADMINISTRATION 
 22.54     Section 1.  Minnesota Statutes 1994, section 16B.08, 
 22.55  subdivision 5, is amended to read: 
 22.56     Subd. 5.  [FEDERAL GENERAL SERVICES ADMINISTRATION AGENCY 
 23.1   PRICE SCHEDULES.] Notwithstanding anything in this chapter to 
 23.2   the contrary, the commissioner may, instead of soliciting bids, 
 23.3   contract for purchases with suppliers who have published 
 23.4   schedules of prices effective for sales to the General Services 
 23.5   Administration any federal agency of the United States.  These 
 23.6   contracts may be entered into, regardless of the amount of the 
 23.7   purchase price, if the commissioner considers them advantageous 
 23.8   and if the purchase price of all the commodities purchased under 
 23.9   the contract do not exceed the price specified by the schedule.  
 23.10     Sec. 2.  Minnesota Statutes 1994, section 171.07, is 
 23.11  amended by adding a subdivision to read: 
 23.12     Subd. 10.  [AGREEMENTS WITH OTHER AGENCIES.] The 
 23.13  commissioner of public safety is authorized to enter into 
 23.14  agreements with other agencies to issue cards to clients of 
 23.15  those agencies for use in their programs.  The cards may be 
 23.16  issued to persons who do not qualify for a Minnesota driver's 
 23.17  license or do not provide evidence of name and identity as 
 23.18  required by rule for a Minnesota identification card.  Persons 
 23.19  issued cards under this subdivision will meet the identification 
 23.20  verification requirements of the contracting agency. 
 23.21     The interagency agreement may include provisions for the 
 23.22  payment of the county fee provided in section 171.06, 
 23.23  subdivision 4, and the actual cost to manufacture the card. 
 23.24     Cards issued under this subdivision are not Minnesota 
 23.25  identification cards for the purposes defined in sections 
 23.26  48.512, 201.061, 201.161, 332.50, and 340A.503. 
 23.27     Sec. 3.  Minnesota Statutes 1994, section 245A.03, 
 23.28  subdivision 2a, is amended to read: 
 23.29     Subd. 2a.  [LICENSING OF FOSTER CARE BY AN INDIVIDUAL WHO 
 23.30  IS RELATED TO A CHILD; LICENSE REQUIRED.] Notwithstanding 
 23.31  subdivision 2, clause (1), the commissioner must license or 
 23.32  approve an individual who is related to a child in order to 
 23.33  provide foster care for that a child, an individual who is 
 23.34  related to the child, other than a grandparent, to the extent 
 23.35  permissible under federal law, parent, or legal guardian, must 
 23.36  be licensed by the commissioner except as provided by section 
 24.1   245A.035.  The commissioner may issue the license or approval 
 24.2   retroactive to the date the child was placed in the applicant's 
 24.3   home, so long as no more than 90 days have elapsed since the 
 24.4   placement.  If more than 90 days have elapsed since the 
 24.5   placement, the commissioner may issue the license or approval 
 24.6   retroactive 90 days.  The granting of a license or approval to 
 24.7   an individual who is related to a child shall be according to 
 24.8   standards set forth by foster care rule.  The commissioner shall 
 24.9   consider the importance of maintaining the child's relationship 
 24.10  to family as an additional significant factor in determining 
 24.11  whether to set aside a licensing disqualifier under section 
 24.12  245A.04, subdivision 3b, or to grant a variance of licensing 
 24.13  requirements under section 245A.04, subdivision 9, in licensing 
 24.14  or approving an individual related to a child. 
 24.15     Sec. 4.  [245A.035] [RELATIVE FOSTER CARE; EMERGENCY 
 24.16  LICENSE.] 
 24.17     Subdivision 1.  [GRANT OF EMERGENCY LICENSE.] 
 24.18  Notwithstanding section 245A.03, subdivision 2a, a county agency 
 24.19  may place a child for foster care with a relative who is not 
 24.20  licensed to provide foster care, provided the requirements of 
 24.21  subdivision 2 are met.  As used in this section, the term 
 24.22  "relative" has the meaning given it under section 260.181, 
 24.23  subdivision 3. 
 24.24     Subd. 2.  [COOPERATION WITH EMERGENCY LICENSING PROCESS.] 
 24.25  (a) A county agency that places a child with a relative who is 
 24.26  not licensed to provide foster care must begin the process of 
 24.27  securing an emergency license for the relative as soon as 
 24.28  possible and must conduct the initial inspection required by 
 24.29  subdivision 3, clause (1), whenever possible, prior to placing 
 24.30  the child in the relative's home, but no later than three 
 24.31  working days after placing the child in the home.  A child 
 24.32  placed in the home of a relative who is not licensed to provide 
 24.33  foster care must be removed from that home if the relative fails 
 24.34  to cooperate with the county agency in securing an emergency 
 24.35  foster care license.  The commissioner may only issue an 
 24.36  emergency foster care license to a relative with whom the county 
 25.1   agency wishes to place or has placed a child for foster care. 
 25.2      (b) If a child is to be placed in the home of a relative 
 25.3   not licensed to provide foster care, either the placing agency 
 25.4   or the county agency in the county in which the relative lives 
 25.5   shall conduct the emergency licensing process as required in 
 25.6   this section. 
 25.7      Subd. 3.  [REQUIREMENTS FOR EMERGENCY LICENSE.] Before an 
 25.8   emergency license may be issued, the following requirements must 
 25.9   be met: 
 25.10     (1) the county agency must conduct an initial inspection of 
 25.11  the premises where the foster care is to be provided to ensure 
 25.12  the health and safety of any child placed in the home.  The 
 25.13  county agency shall conduct the inspection using a form 
 25.14  developed by the commissioner; 
 25.15     (2) at the time of the inspection or placement, whichever 
 25.16  is earlier, the relative being considered for an emergency 
 25.17  license shall receive an application form for a child foster 
 25.18  care license; and 
 25.19     (3) whenever possible, prior to placing the child in the 
 25.20  relative's home, the relative being considered for an emergency 
 25.21  license shall provide the information required by section 
 25.22  245A.04, subdivision 3, paragraph (b). 
 25.23     Subd. 4.  [APPLICANT STUDY.] When the county agency has 
 25.24  received the information required by section 245A.04, 
 25.25  subdivision 3, paragraph (b), the county agency shall begin an 
 25.26  applicant study according to the procedures in section 245A.04, 
 25.27  subdivision 3.  The commissioner may issue an emergency license 
 25.28  upon recommendation of the county agency once the initial 
 25.29  inspection has been successfully completed and the information 
 25.30  necessary to begin the applicant background study has been 
 25.31  provided.  If the county agency does not recommend that the 
 25.32  emergency license be granted, the agency shall notify the 
 25.33  relative in writing that the agency is recommending denial to 
 25.34  the commissioner; shall remove any child who has been placed in 
 25.35  the home prior to licensure; and shall inform the relative in 
 25.36  writing of the procedure to request review pursuant to 
 26.1   subdivision 6.  An emergency license shall be effective until a 
 26.2   child foster care license is granted or denied, but shall in no 
 26.3   case remain in effect more than 90 days from the date of 
 26.4   placement. 
 26.5      Subd. 5.  [CHILD FOSTER CARE LICENSE APPLICATION.] The 
 26.6   emergency license holder shall complete the child foster care 
 26.7   license application and necessary paperwork within ten days of 
 26.8   the placement.  The county agency shall assist the emergency 
 26.9   license holder to complete the application.  The granting of a 
 26.10  child foster care license to a relative shall be under the 
 26.11  procedures in this chapter and according to the standards set 
 26.12  forth by foster care rule.  In licensing a relative, the 
 26.13  commissioner shall consider the importance of maintaining the 
 26.14  child's relationship with relatives as an additional significant 
 26.15  factor in determining whether to set aside a licensing 
 26.16  disqualifier under section 245A.04, subdivision 3b, or to grant 
 26.17  a variance of licensing requirements under section 245A.04, 
 26.18  subdivision 9. 
 26.19     Subd. 6.  [DENIAL OF EMERGENCY LICENSE.] If the 
 26.20  commissioner denies an application for an emergency foster care 
 26.21  license under this section, that denial must be in writing and 
 26.22  must include reasons for the denial.  Denial of an emergency 
 26.23  license is not subject to appeal under chapter 14.  The relative 
 26.24  may request a review of the denial by submitting to the 
 26.25  commissioner a written statement of the reasons an emergency 
 26.26  license should be granted.  The commissioner shall evaluate the 
 26.27  request for review and determine whether to grant the emergency 
 26.28  license.  Within 15 working days of the receipt of the request 
 26.29  for review, the commissioner shall notify the relative 
 26.30  requesting review in written form whether the emergency license 
 26.31  will be granted.  The commissioner's review shall be based on a 
 26.32  review of the records submitted by the county agency and the 
 26.33  relative.  A child shall not be placed or remain placed in the 
 26.34  relative's home while the request for review is pending.  Denial 
 26.35  of an emergency license shall not preclude an individual from 
 26.36  reapplying for an emergency license or from applying for a child 
 27.1   foster care license.  The decision of the commissioner is the 
 27.2   final administrative agency action.  
 27.3      Sec. 5.  Minnesota Statutes 1994, section 245A.04, 
 27.4   subdivision 3, is amended to read: 
 27.5      Subd. 3.  [STUDY OF THE APPLICANT.] (a) Before the 
 27.6   commissioner issues a license, the commissioner shall conduct a 
 27.7   study of the individuals specified in clauses (1) to (4) 
 27.8   according to rules of the commissioner.  The applicant, license 
 27.9   holder, the bureau of criminal apprehension, and county 
 27.10  agencies, after written notice to the individual who is the 
 27.11  subject of the study, shall help with the study by giving the 
 27.12  commissioner criminal conviction data and reports about abuse or 
 27.13  neglect of adults in licensed programs substantiated under 
 27.14  section 626.557 and the maltreatment of minors in licensed 
 27.15  programs substantiated under section 626.556.  The individuals 
 27.16  to be studied shall include: 
 27.17     (1) the applicant; 
 27.18     (2) persons over the age of 13 living in the household 
 27.19  where the licensed program will be provided; 
 27.20     (3) current employees or contractors of the applicant who 
 27.21  will have direct contact with persons served by the program; and 
 27.22     (4) volunteers who have direct contact with persons served 
 27.23  by the program to provide program services, if the contact is 
 27.24  not directly supervised by the individuals listed in clause (1) 
 27.25  or (3). 
 27.26     The juvenile courts shall also help with the study by 
 27.27  giving the commissioner existing juvenile court records on 
 27.28  individuals described in clause (2) relating to delinquency 
 27.29  proceedings held within either the five years immediately 
 27.30  preceding the application or the five years immediately 
 27.31  preceding the individual's 18th birthday, whichever time period 
 27.32  is longer.  The commissioner shall destroy juvenile records 
 27.33  obtained pursuant to this subdivision when the subject of the 
 27.34  records reaches age 23.  
 27.35     For purposes of this section and Minnesota Rules, part 
 27.36  9543.3070, a finding that a delinquency petition is proven in 
 28.1   juvenile court shall be considered a conviction in state 
 28.2   district court. 
 28.3      For purposes of this subdivision, "direct contact" means 
 28.4   providing face-to-face care, training, supervision, counseling, 
 28.5   consultation, or medication assistance to persons served by a 
 28.6   program.  For purposes of this subdivision, "directly supervised"
 28.7   means an individual listed in clause (1) or (3) is within sight 
 28.8   or hearing of a volunteer to the extent that the individual 
 28.9   listed in clause (1) or (3) is capable at all times of 
 28.10  intervening to protect the health and safety of the persons 
 28.11  served by the program who have direct contact with the volunteer.
 28.12     A study of an individual in clauses (1) to (4) shall be 
 28.13  conducted at least upon application for initial license and 
 28.14  reapplication for a license.  No applicant, license holder, or 
 28.15  individual who is the subject of the study shall pay any fees 
 28.16  required to conduct the study.  
 28.17     (b) The individual who is the subject of the study must 
 28.18  provide the applicant or license holder with sufficient 
 28.19  information to ensure an accurate study including the 
 28.20  individual's first, middle, and last name; home address, city, 
 28.21  county, and state of residence; zip code; sex; date of birth; 
 28.22  and driver's license number.  The applicant or license holder 
 28.23  shall provide this information about an individual in paragraph 
 28.24  (a), clauses (1) to (4), on forms prescribed by the 
 28.25  commissioner.  The commissioner may request additional 
 28.26  information of the individual, which shall be optional for the 
 28.27  individual to provide, such as the individual's social security 
 28.28  number or race. 
 28.29     (c) Except for child foster care, adult foster care, and 
 28.30  family day care homes, a study must include information from the 
 28.31  county agency's record of substantiated abuse or neglect of 
 28.32  adults in licensed programs, and the maltreatment of minors in 
 28.33  licensed programs, information from juvenile courts as required 
 28.34  in paragraph (a) for persons listed in paragraph (a), clause 
 28.35  (2), and information from the bureau of criminal apprehension.  
 28.36  For child foster care, adult foster care, and family day care 
 29.1   homes, the study must include information from the county 
 29.2   agency's record of substantiated abuse or neglect of adults, and 
 29.3   the maltreatment of minors, information from juvenile courts as 
 29.4   required in paragraph (a) for persons listed in paragraph (a), 
 29.5   clause (2), and information from the bureau of criminal 
 29.6   apprehension.  The commissioner may also review arrest and 
 29.7   investigative information from the bureau of criminal 
 29.8   apprehension, a county attorney, county sheriff, county agency, 
 29.9   local chief of police, other states, the courts, or a national 
 29.10  criminal record repository if the commissioner has reasonable 
 29.11  cause to believe the information is pertinent to the 
 29.12  disqualification of an individual listed in paragraph (a), 
 29.13  clauses (1) to (4).  The commissioner is not required to conduct 
 29.14  more than one review of a subject's records from the national 
 29.15  criminal record repository if a review of the subject's criminal 
 29.16  history with the national criminal record repository has already 
 29.17  been completed by the commissioner and there has been no break 
 29.18  in the subject's affiliation with the license holder who 
 29.19  initiated the background studies. 
 29.20     (d) An applicant's or license holder's failure or refusal 
 29.21  to cooperate with the commissioner is reasonable cause to deny 
 29.22  an application or immediately suspend, suspend, or revoke a 
 29.23  license.  Failure or refusal of an individual to cooperate with 
 29.24  the study is just cause for denying or terminating employment of 
 29.25  the individual if the individual's failure or refusal to 
 29.26  cooperate could cause the applicant's application to be denied 
 29.27  or the license holder's license to be immediately suspended, 
 29.28  suspended, or revoked. 
 29.29     (e) The commissioner shall not consider an application to 
 29.30  be complete until all of the information required to be provided 
 29.31  under this subdivision has been received.  
 29.32     (f) No person in paragraph (a), clause (1), (2), (3), or 
 29.33  (4) who is disqualified as a result of this section may be 
 29.34  retained by the agency in a position involving direct contact 
 29.35  with persons served by the program. 
 29.36     (g) Termination of persons in paragraph (a), clause (1), 
 30.1   (2), (3), or (4) made in good faith reliance on a notice of 
 30.2   disqualification provided by the commissioner shall not subject 
 30.3   the applicant or license holder to civil liability. 
 30.4      (h) The commissioner may establish records to fulfill the 
 30.5   requirements of this section. 
 30.6      (i) The commissioner may not disqualify an individual 
 30.7   subject to a study under this section because that person has, 
 30.8   or has had, a mental illness as defined in section 245.462, 
 30.9   subdivision 20. 
 30.10     (j) An individual who is subject to an applicant background 
 30.11  study under this section and whose disqualification in 
 30.12  connection with a license would be subject to the limitations on 
 30.13  reconsideration set forth in subdivision 3b, paragraph (c), 
 30.14  shall be disqualified for conviction of the crimes specified in 
 30.15  the manner specified in subdivision 3b, paragraph (c).  The 
 30.16  commissioner of human services shall amend Minnesota Rules, part 
 30.17  9543.3070, to conform to this section. 
 30.18     Sec. 6.  Minnesota Statutes 1994, section 245A.04, 
 30.19  subdivision 3b, is amended to read: 
 30.20     Subd. 3b.  [RECONSIDERATION OF DISQUALIFICATION.] (a) 
 30.21  Within 30 days after receiving notice of disqualification under 
 30.22  subdivision 3a, the individual who is the subject of the study 
 30.23  may request reconsideration of the notice of disqualification.  
 30.24  The individual must submit the request for reconsideration to 
 30.25  the commissioner in writing.  The individual must present 
 30.26  information to show that: 
 30.27     (1) the information the commissioner relied upon is 
 30.28  incorrect; or 
 30.29     (2) the subject of the study does not pose a risk of harm 
 30.30  to any person served by the applicant or license holder. 
 30.31     (b) The commissioner may set aside the disqualification if 
 30.32  the commissioner finds that the information the commissioner 
 30.33  relied upon is incorrect or the individual does not pose a risk 
 30.34  of harm to any person served by the applicant or license 
 30.35  holder.  The commissioner shall review the consequences of the 
 30.36  event or events that could lead to disqualification, whether 
 31.1   there is more than one disqualifying event, the vulnerability of 
 31.2   the victim at the time of the event, the time elapsed without a 
 31.3   repeat of the same or similar event, and documentation of 
 31.4   successful completion by the individual studied of training or 
 31.5   rehabilitation pertinent to the event.  In reviewing a 
 31.6   disqualification, the commissioner shall give preeminent weight 
 31.7   to the safety of each person to be served by the license holder 
 31.8   or applicant over the interests of the license holder or 
 31.9   applicant.  
 31.10     (c) Unless the information the commissioner relied on in 
 31.11  disqualifying an individual is incorrect, the commissioner may 
 31.12  not set aside the disqualification of an individual in 
 31.13  connection with a license to provide family day care for 
 31.14  children, foster care for children in the provider's own home, 
 31.15  or foster care or day care services for adults in the provider's 
 31.16  own home if: 
 31.17     (1) less than ten years have passed since the discharge of 
 31.18  the sentence imposed for the offense; and the individual has 
 31.19  been convicted of a violation of any offense listed in section 
 31.20  609.20 (manslaughter in the first degree), 609.205 (manslaughter 
 31.21  in the second degree), 609.21 (criminal vehicular homicide), 
 31.22  609.215 (aiding suicide or aiding attempted suicide), 609.221 to 
 31.23  609.2231 (felony violations of assault in the first, second, 
 31.24  third, or fourth degree), 609.713 (terroristic threats), 609.235 
 31.25  (use of drugs to injure or to facilitate crime), 609.24 (simple 
 31.26  robbery), 609.245 (aggravated robbery), 609.25 (kidnapping), 
 31.27  609.255 (false imprisonment), 609.561 or 609.562 (arson in the 
 31.28  first or second degree), 609.71 (riot), 609.582 (burglary in the 
 31.29  first or second degree), 609.66 (reckless use of a gun or 
 31.30  dangerous weapon or intentionally pointing a gun at or towards a 
 31.31  human being), 609.665 (setting a spring gun), 609.67 (unlawfully 
 31.32  owning, possessing, or operating a machine gun), 609.749 
 31.33  (stalking), 152.021 or 152.022 (controlled substance crime in 
 31.34  the first or second degree), 152.023, subdivision 1, clause (3) 
 31.35  or (4), or subdivision 2, clause (4) (controlled substance crime 
 31.36  in the third degree), 152.024, subdivision 1, clause (2), (3), 
 32.1   or (4) (controlled substance crime in the fourth degree), 
 32.2   609.228 (great bodily harm caused by distribution of drugs), 
 32.3   609.23 (mistreatment of persons confined), 609.231 (mistreatment 
 32.4   of residents or patients), 609.265 (abduction), 609.2664 to 
 32.5   609.2665 (manslaughter of an unborn child in the first or second 
 32.6   degree), 609.267 to 609.2672 (assault of an unborn child in the 
 32.7   first, second, or third degree), 609.268 (injury or death of an 
 32.8   unborn child in the commission of a crime), 617.293 
 32.9   (disseminating or displaying harmful material to minors), 
 32.10  609.378 (neglect or endangerment of a child), 609.377 (a gross 
 32.11  misdemeanor offense of malicious punishment of a child); or an 
 32.12  attempt or conspiracy to commit any of these offenses, as each 
 32.13  of these offenses is defined in Minnesota Statutes; or an 
 32.14  offense in any other state, the elements of which are 
 32.15  substantially similar to the elements of any of the foregoing 
 32.16  offenses; 
 32.17     (2) regardless of how much time has passed since the 
 32.18  discharge of the sentence imposed for the offense, the 
 32.19  individual was convicted of a violation of any offense listed in 
 32.20  sections 609.185 to 609.195 (murder in the first, second, or 
 32.21  third degree), 609.2661 to 609.2663 (murder of an unborn child 
 32.22  in the first, second, or third degree), 609.377 (a felony 
 32.23  offense of malicious punishment of a child), 609.322 
 32.24  (soliciting, inducement, or promotion of prostitution), 609.323 
 32.25  (receiving profit derived from prostitution), 609.342 to 609.345 
 32.26  (criminal sexual conduct in the first, second, third, or fourth 
 32.27  degree), 609.352 (solicitation of children to engage in sexual 
 32.28  conduct), 617.246 (use of minors in a sexual performance), 
 32.29  617.247 (possession of pictorial representations of a minor), 
 32.30  609.365 (incest), or an attempt or conspiracy to commit any of 
 32.31  these offenses as defined in Minnesota Statutes, or an offense 
 32.32  in any other state, the elements of which are substantially 
 32.33  similar to any of the foregoing offenses; 
 32.34     (3) within the seven years preceding the study, the 
 32.35  individual committed an act that constitutes maltreatment of a 
 32.36  child under section 626.556, subdivision 10e, and that resulted 
 33.1   in substantial bodily harm as defined in section 609.02, 
 33.2   subdivision 7a, or substantial mental or emotional harm as 
 33.3   supported by competent psychological or psychiatric evidence; or 
 33.4      (4) within the seven years preceding the study, the 
 33.5   individual was determined under section 626.557 to be the 
 33.6   perpetrator of a substantiated incident of abuse of a vulnerable 
 33.7   adult that resulted in substantial bodily harm as defined in 
 33.8   section 609.02, subdivision 7a, or substantial mental or 
 33.9   emotional harm as supported by competent psychological or 
 33.10  psychiatric evidence. 
 33.11     In the case of any ground for disqualification under 
 33.12  clauses (1) to (4), if the act was committed by an individual 
 33.13  other than the applicant or license holder residing in the 
 33.14  applicant's or license holder's home, the applicant or license 
 33.15  holder may seek reconsideration when the individual who 
 33.16  committed the act no longer resides in the home.  
 33.17     The disqualification periods provided under clauses (1), 
 33.18  (3), and (4) are the minimum applicable disqualification 
 33.19  periods.  The commissioner may determine that an individual 
 33.20  should continue to be disqualified from licensure because the 
 33.21  license holder or applicant poses a risk of harm to a person 
 33.22  served by that individual after the minimum disqualification 
 33.23  period has passed. 
 33.24     (d) The commissioner shall respond in writing to all 
 33.25  reconsideration requests within 15 working days after receiving 
 33.26  the request for reconsideration.  If the disqualification is set 
 33.27  aside, the commissioner shall notify the applicant or license 
 33.28  holder in writing of the decision. 
 33.29     (e) Except as provided in subdivision 3c, the 
 33.30  commissioner's decision to disqualify an individual, including 
 33.31  the decision to grant or deny a reconsideration of 
 33.32  disqualification under this subdivision, or to set aside or 
 33.33  uphold the results of the study under subdivision 3, is the 
 33.34  final administrative agency action and shall not be subject to 
 33.35  further review in a contested case under chapter 14 involving a 
 33.36  negative licensing action taken in response to the 
 34.1   disqualification. 
 34.2      Sec. 7.  Minnesota Statutes 1994, section 245A.04, 
 34.3   subdivision 7, is amended to read: 
 34.4      Subd. 7.  [ISSUANCE OF A LICENSE; PROVISIONAL LICENSE.] (a) 
 34.5   If the commissioner determines that the program complies with 
 34.6   all applicable rules and laws, the commissioner shall issue a 
 34.7   license.  At minimum, the license shall state:  
 34.8      (1) the name of the license holder; 
 34.9      (2) the address of the program; 
 34.10     (3) the effective date and expiration date of the license; 
 34.11     (4) the type of license; 
 34.12     (5) the maximum number and ages of persons that may receive 
 34.13  services from the program; and 
 34.14     (6) any special conditions of licensure. 
 34.15     (b) The commissioner may issue a provisional license for a 
 34.16  period not to exceed one year if:  
 34.17     (1) the commissioner is unable to conduct the evaluation or 
 34.18  observation required by subdivision 4, paragraph (a), clauses (3)
 34.19  and (4), because the program is not yet operational; 
 34.20     (2) certain records and documents are not available because 
 34.21  persons are not yet receiving services from the program; and 
 34.22     (3) the applicant complies with applicable laws and rules 
 34.23  in all other respects.  
 34.24  A provisional license must not be issued except at the time that 
 34.25  a license is first issued to an applicant. 
 34.26     (c) A decision by the commissioner to issue a license does 
 34.27  not guarantee that any person or persons will be placed or cared 
 34.28  for in the licensed program.  A license shall not be 
 34.29  transferable to another individual, corporation, partnership, 
 34.30  voluntary association, other organization, or controlling 
 34.31  individual, or to another location.  Unless otherwise specified 
 34.32  by statute, all licenses expire at 12:01 a.m. on the day after 
 34.33  the expiration date stated on the license.  A license holder 
 34.34  must apply for and be granted a new license to operate the 
 34.35  program or the program must not be operated after the expiration 
 34.36  date.  
 35.1      Sec. 8.  Minnesota Statutes 1994, section 245A.04, 
 35.2   subdivision 9, is amended to read: 
 35.3      Subd. 9.  [VARIANCES.] The commissioner may grant variances 
 35.4   to rules that do not affect the health or safety of persons in a 
 35.5   licensed program if the following conditions are met:  
 35.6      (1) the variance must be requested by an applicant or 
 35.7   license holder on a form and in a manner prescribed by the 
 35.8   commissioner; 
 35.9      (2) the request for a variance must include the reasons 
 35.10  that the applicant or license holder cannot comply with a 
 35.11  requirement as stated in the rule and the alternative equivalent 
 35.12  measures that the applicant or license holder will follow to 
 35.13  comply with the intent of the rule; and 
 35.14     (3) the request must state the period of time for which the 
 35.15  variance is requested.  
 35.16     The commissioner may grant a permanent variance when 
 35.17  conditions under which the variance is requested do not affect 
 35.18  the health or safety of persons being served by the licensed 
 35.19  program, nor compromise the qualifications of staff to provide 
 35.20  services.  The permanent variance shall expire as soon as the 
 35.21  conditions that warranted the variance are modified in any way.  
 35.22  Any applicant or license holder must inform the commissioner of 
 35.23  any changes or modifications that have occurred in the 
 35.24  conditions that warranted the permanent variance.  Failure to 
 35.25  advise the commissioner shall result in revocation of the 
 35.26  permanent variance and may be cause for other sanctions under 
 35.27  sections 245A.06 and 245A.07. 
 35.28     The commissioner's decision to grant or deny a variance 
 35.29  request is final and not subject to appeal under the provisions 
 35.30  of chapter 14. 
 35.31     Sec. 9.  Minnesota Statutes 1994, section 245A.06, 
 35.32  subdivision 2, is amended to read: 
 35.33     Subd. 2.  [RECONSIDERATION OF CORRECTION ORDERS.] If the 
 35.34  applicant or license holder believes that the contents of the 
 35.35  commissioner's correction order are in error, the applicant or 
 35.36  license holder may ask the department of human services to 
 36.1   reconsider the parts of the correction order that are alleged to 
 36.2   be in error.  The request for reconsideration must be in 
 36.3   writing, delivered by certified mail and received by the 
 36.4   commissioner within 20 calendar days after receipt of the 
 36.5   correction order by the applicant or license holder, and: 
 36.6      (1) specify the parts of the correction order that are 
 36.7   alleged to be in error; 
 36.8      (2) explain why they are in error; and 
 36.9      (3) include documentation to support the allegation of 
 36.10  error. 
 36.11     A request for reconsideration does not stay any provisions 
 36.12  or requirements of the correction order.  The commissioner's 
 36.13  disposition of a request for reconsideration is final and not 
 36.14  subject to appeal under chapter 14. 
 36.15     Sec. 10.  Minnesota Statutes 1994, section 245A.06, 
 36.16  subdivision 4, is amended to read: 
 36.17     Subd. 4.  [NOTICE OF FINE; APPEAL.] A license holder who is 
 36.18  ordered to pay a fine must be notified of the order by certified 
 36.19  mail.  The notice must be mailed to the address shown on the 
 36.20  application or the last known address of the license holder.  
 36.21  The notice must state the reasons the fine was ordered and must 
 36.22  inform the license holder of the responsibility for payment of 
 36.23  fines in subdivision 7 and the right to a contested case hearing 
 36.24  under chapter 14.  The license holder may appeal the order to 
 36.25  forfeit a fine by notifying the commissioner by certified mail 
 36.26  within 15 calendar days after receiving the order.  A timely 
 36.27  appeal shall stay forfeiture of the fine until the commissioner 
 36.28  issues a final order under section 245A.08, subdivision 5. 
 36.29     Sec. 11.  Minnesota Statutes 1994, section 245A.06, is 
 36.30  amended by adding a subdivision to read: 
 36.31     Subd. 7.  [RESPONSIBILITY FOR PAYMENT OF FINES.] When a 
 36.32  fine has been assessed, the license holder may not avoid payment 
 36.33  by closing, selling, or otherwise transferring the licensed 
 36.34  program to a third party.  In such an event, the license holder 
 36.35  will be personally liable for payment.  In the case of a 
 36.36  corporation, each controlling individual is personally and 
 37.1   jointly liable for payment. 
 37.2      Sec. 12.  Minnesota Statutes 1994, section 245A.07, 
 37.3   subdivision 3, is amended to read: 
 37.4      Subd. 3.  [SUSPENSION, REVOCATION, PROBATION.] The 
 37.5   commissioner may suspend, revoke, or make probationary a license 
 37.6   if a license holder fails to comply fully with applicable laws 
 37.7   or rules or knowingly gives false or misleading information to 
 37.8   the commissioner in connection with an application for a license 
 37.9   or during an investigation.  A license holder who has had a 
 37.10  license suspended, revoked, or made probationary must be given 
 37.11  notice of the action by certified mail.  The notice must be 
 37.12  mailed to the address shown on the application or the last known 
 37.13  address of the license holder.  The notice must state the 
 37.14  reasons the license was suspended, revoked, or made probationary.
 37.15     (a) If the license was suspended or revoked, the notice 
 37.16  must inform the license holder of the right to a contested case 
 37.17  hearing under chapter 14.  The license holder may appeal an 
 37.18  order suspending or revoking a license.  The appeal of an order 
 37.19  suspending or revoking a license must be made in writing by 
 37.20  certified mail and must be received by the commissioner within 
 37.21  ten calendar days after the license holder receives notice that 
 37.22  the license has been suspended or revoked.  
 37.23     (b) If the license was made probationary, the notice must 
 37.24  inform the license holder of the right to request a 
 37.25  reconsideration by the commissioner.  The request for 
 37.26  reconsideration must be made in writing by certified mail and 
 37.27  must be received by the commissioner within ten calendar days 
 37.28  after the license holder receives notice that the license has 
 37.29  been made probationary.  The license holder may submit with the 
 37.30  request for reconsideration written argument or evidence in 
 37.31  support of the request for reconsideration.  The commissioner's 
 37.32  disposition of a request for reconsideration is final and is not 
 37.33  subject to appeal under chapter 14.  
 37.34     Sec. 13.  Minnesota Statutes 1994, section 245A.14, 
 37.35  subdivision 6, is amended to read: 
 37.36     Subd. 6.  [DROP-IN CHILD CARE PROGRAMS.] (a) Except as 
 38.1   expressly set forth in this subdivision, drop-in child care 
 38.2   programs must be licensed as a drop-in program under the rules 
 38.3   governing child care programs operated in a center.  
 38.4      (b) Drop-in child care programs are exempt from the 
 38.5   following Minnesota Rules: 
 38.6      (1) part 9503.0040; 
 38.7      (2) part 9503.0045, subpart 1, items F and G; 
 38.8      (3) part 9503.0050, subpart 6, except for children less 
 38.9   than 2-1/2 years old; 
 38.10     (4) one-half the requirements of part 9503.0060, subpart 4, 
 38.11  item A, subitems (2), (5), and (8), subpart 5, item A, subitems 
 38.12  (2), (3), and (7), and subpart 6, item A, subitems (3) and (6); 
 38.13     (5) part 9503.0070; and 
 38.14     (6) part 9503.0090, subpart 2.  
 38.15     (c) A drop-in child care program must be operated under the 
 38.16  supervision of a person qualified as a director and a teacher.  
 38.17     (d) A drop-in child care program must have at least two 
 38.18  persons on staff whenever the program is operating, except that 
 38.19  the commissioner may permit variances from this requirement 
 38.20  under specified circumstances for parent cooperative programs, 
 38.21  as long as all other staff-to-child ratios are met.  
 38.22     (e) Whenever the total number of children present to be 
 38.23  cared for at a center is more than 20, children that are younger 
 38.24  than age 2-1/2 must be in a separate group.  This group may 
 38.25  contain children up to 60 months old.  This group must be cared 
 38.26  for in an area that is physically separated from older children. 
 38.27     (f) A drop-in child care program must maintain a minimum 
 38.28  staff ratio for children age 2-1/2 or greater of one staff 
 38.29  person for each ten children.  
 38.30     (g) If the program has additional staff who are on call as 
 38.31  a mandatory condition of their employment, the minimum 
 38.32  child-to-staff ratio may be exceeded only for children age 2-1/2 
 38.33  or greater, by a maximum of four children, for no more than 20 
 38.34  minutes while additional staff are in transit.  
 38.35     (h) The minimum staff-to-child ratio for infants up to 16 
 38.36  months of age is one staff person for every four infants.  The 
 39.1   minimum staff-to-child ratio for children age 17 months to 30 
 39.2   months is one staff for every seven children.  
 39.3      (i) In drop-in care programs that serve both infants and 
 39.4   older children, children up to age 2-1/2 may be supervised by 
 39.5   assistant teachers, as long as other staff are present in 
 39.6   appropriate ratios.  
 39.7      (j) The minimum staff distribution pattern for a drop-in 
 39.8   child care program serving children age 2-1/2 or greater is:  
 39.9   the first staff member must be a teacher; the second, third, and 
 39.10  fourth staff members must have at least the qualifications of a 
 39.11  child care aide; the fifth staff member must have at least the 
 39.12  qualifications of an assistant teacher; the sixth, seventh, and 
 39.13  eighth staff members must have at least the qualifications of a 
 39.14  child care aide; and the ninth staff person must have at least 
 39.15  the qualifications of an assistant teacher.  
 39.16     (k) A drop-in child care program may care for siblings 16 
 39.17  months or older together in any group.  For purposes of this 
 39.18  subdivision, sibling is defined as sister or brother, 
 39.19  half-sister or half-brother, or stepsister or stepbrother. 
 39.20     (l) The commissioner may grant a variance to any of the 
 39.21  requirements in paragraphs (a) to (k), as long as the health and 
 39.22  safety of the persons served by the program are not affected.  
 39.23  The request for a variance shall comply with the provisions in 
 39.24  section 245A.04, subdivision 9. 
 39.25     Sec. 14.  Minnesota Statutes 1994, section 256.014, 
 39.26  subdivision 1, is amended to read: 
 39.27     Subdivision 1.  [ESTABLISHMENT OF SYSTEMS.] The 
 39.28  commissioner of human services shall establish and enhance 
 39.29  computer systems necessary for the efficient operation of the 
 39.30  programs the commissioner supervises, including: 
 39.31     (1) management and administration of the food stamp and 
 39.32  income maintenance programs, including the electronic 
 39.33  distribution of benefits; 
 39.34     (2) management and administration of the child support 
 39.35  enforcement program; and 
 39.36     (3) administration of medical assistance and general 
 40.1   assistance medical care. 
 40.2      The commissioner shall distribute the nonfederal share of 
 40.3   the costs of operating and maintaining the systems to the 
 40.4   commissioner and to the counties participating in the system in 
 40.5   a manner that reflects actual system usage, except that the 
 40.6   nonfederal share of the costs of the MAXIS computer system and 
 40.7   child support enforcement systems shall be borne entirely by the 
 40.8   commissioner.  Development costs must not be assessed against 
 40.9   county agencies. 
 40.10     Sec. 15.  Minnesota Statutes 1994, section 256.025, 
 40.11  subdivision 1, is amended to read: 
 40.12     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
 40.13  section, the following terms have the meanings given them.  
 40.14     (b) "Base amount" means the calendar year 1990 county share 
 40.15  of county agency expenditures for all of the programs specified 
 40.16  in subdivision 2, except for the programs in subdivision 2, 
 40.17  clauses (4), (7), and (13).  The 1990 base amount for 
 40.18  subdivision 2, clause (4), shall be reduced by one-seventh for 
 40.19  each county, and the 1990 base amount for subdivision 2, clause 
 40.20  (7), shall be reduced by seven-tenths for each county, and those 
 40.21  amounts in total shall be the 1990 base amount for group 
 40.22  residential housing in subdivision 2, clause (13).  
 40.23     (c) "County agency expenditure" means the total expenditure 
 40.24  or cost incurred by the county of financial responsibility for 
 40.25  the benefits and services for each of the programs specified in 
 40.26  subdivision 2.  The term includes the federal, state, and county 
 40.27  share of costs for programs in which there is federal financial 
 40.28  participation.  For programs in which there is no federal 
 40.29  financial participation, the term includes the state and county 
 40.30  share of costs.  The term excludes county administrative costs, 
 40.31  unless otherwise specified.  
 40.32     (d) "Nonfederal share" means the sum of state and county 
 40.33  shares of costs of the programs specified in subdivision 2. 
 40.34     (e) The "county share of county agency expenditures growth 
 40.35  amount" is the amount by which the county share of county agency 
 40.36  expenditures in calendar years 1991 to 2000 2002 has increased 
 41.1   over the base amount. 
 41.2      Sec. 16.  Minnesota Statutes 1994, section 256.025, 
 41.3   subdivision 3, is amended to read: 
 41.4      Subd. 3.  [PAYMENT METHODS.] (a) Beginning July 1, 1991, 
 41.5   the state will reimburse counties for the county share of county 
 41.6   agency expenditures for benefits and services distributed under 
 41.7   subdivision 2.  Reimbursement may take the form of offsets to 
 41.8   billings of a county, if the county agrees to the offset process.
 41.9      (b) Payments under subdivision 4 are only for client 
 41.10  benefits and services distributed under subdivision 2 and do not 
 41.11  include reimbursement for county administrative expenses. 
 41.12     (c) The state and the county agencies shall pay for 
 41.13  assistance programs as follows: 
 41.14     (1) Where the state issues payments for the programs, the 
 41.15  county shall monthly or quarterly pay to the state, as required 
 41.16  by the department of human services, the portion of program 
 41.17  costs not met by federal and state funds.  The payment shall be 
 41.18  an estimate that is based on actual expenditures from the prior 
 41.19  period and that is sufficient to compensate for the county share 
 41.20  of disbursements as well as state and federal shares of 
 41.21  recoveries; 
 41.22     (2) Where the county agencies issue payments for the 
 41.23  programs, the state shall monthly or quarterly pay to counties 
 41.24  all federal funds available for those programs together with an 
 41.25  amount of state funds equal to the state share of expenditures; 
 41.26  and 
 41.27     (3) Payments made under this paragraph are subject to 
 41.28  section 256.017.  Adjustment of any overestimate or 
 41.29  underestimate in payments shall be made by the state agency in 
 41.30  any succeeding month. 
 41.31     Sec. 17.  Minnesota Statutes 1994, section 256.026, is 
 41.32  amended to read: 
 41.33     256.026 [ANNUAL APPROPRIATION.] 
 41.34     (a) There shall be appropriated from the general fund to 
 41.35  the commissioner of human services in fiscal year 1994 1996 the 
 41.36  amount of $136,154,768 and in fiscal year 1997 and each fiscal 
 42.1   year thereafter the amount of $142,339,359, which is the sum of 
 42.2   the amount of human services aid determined for all counties in 
 42.3   Minnesota for calendar year 1992 under Minnesota Statutes 1992, 
 42.4   section 273.1398, subdivision 5a, before any adjustments for 
 42.5   calendar year 1991 $133,781,768.  
 42.6      (b) In addition to the amount in paragraph (a), there shall 
 42.7   also be annually appropriated from the general fund to the 
 42.8   commissioner of human services in fiscal years 1996, 1997, 1998, 
 42.9   1999, 2000, and 2001 the amount of $5,930,807 $5,574,241. 
 42.10     (c) The amounts appropriated under paragraphs (a) and (b) 
 42.11  shall be used with other appropriations to make payments 
 42.12  required under section 256.025 for fiscal year 1994 1996 and 
 42.13  thereafter. 
 42.14     Sec. 18.  Minnesota Statutes 1994, section 256.034, 
 42.15  subdivision 1, is amended to read: 
 42.16     Subdivision 1.  [CONSOLIDATION OF TYPES OF ASSISTANCE.] 
 42.17  Under the Minnesota family investment plan, assistance 
 42.18  previously provided to families through the AFDC, food stamp, 
 42.19  and general assistance programs must be combined into a single 
 42.20  cash assistance program.  As authorized by Congress, families 
 42.21  receiving assistance through the Minnesota family investment 
 42.22  plan are automatically eligible for and entitled to medical 
 42.23  assistance under chapter 256B.  Federal, state, and local funds 
 42.24  that would otherwise be allocated for assistance to families 
 42.25  under the AFDC, food stamp, and general assistance programs must 
 42.26  be transferred to the Minnesota family investment plan.  The 
 42.27  provisions of the Minnesota family investment plan prevail over 
 42.28  any provisions of sections 245.771, 256.72 to 256.87, 256D.01 to 
 42.29  256D.21, or 393.07, subdivisions 10 and 10a, and any rules 
 42.30  implementing those sections with which they are irreconcilable.  
 42.31  The food stamp, general assistance, and work readiness programs 
 42.32  for single persons and couples who are not responsible for the 
 42.33  care of children are not replaced by the Minnesota family 
 42.34  investment plan.  Unless stated otherwise in statutes or rules 
 42.35  governing the Minnesota family investment plan, participants in 
 42.36  the Minnesota family investment plan shall be considered to be 
 43.1   recipients of aid under aid to families with dependent children, 
 43.2   family general assistance, and food stamps for the purposes of 
 43.3   statutes and rules affecting such recipients or allocations of 
 43.4   funding based on the assistance status of the recipients, and to 
 43.5   specifically be subject to the provisions of section 256.98.  
 43.6      Sec. 19.  Minnesota Statutes 1994, section 256.045, 
 43.7   subdivision 3, is amended to read: 
 43.8      Subd. 3.  [STATE AGENCY HEARINGS.] (a) Any person applying 
 43.9   for, receiving or having received public assistance or a program 
 43.10  of social services granted by the state agency or a county 
 43.11  agency under sections 252.32, 256.031 to 256.036, and 256.72 to 
 43.12  256.879, chapters 256B, 256D, 256E, 261, or the federal Food 
 43.13  Stamp Act whose application for assistance is denied, not acted 
 43.14  upon with reasonable promptness, or whose assistance is 
 43.15  suspended, reduced, terminated, or claimed to have been 
 43.16  incorrectly paid, or any patient or relative aggrieved by an 
 43.17  order of the commissioner under section 252.27, or a party 
 43.18  aggrieved by a ruling of a prepaid health plan, may contest that 
 43.19  action or decision before the state agency by submitting a 
 43.20  written request for a hearing to the state agency within 30 days 
 43.21  after receiving written notice of the action or decision, or 
 43.22  within 90 days of such written notice if the applicant, 
 43.23  recipient, patient, or relative shows good cause why the request 
 43.24  was not submitted within the 30-day time limit. 
 43.25     (b) Except for a prepaid health plan, a vendor of medical 
 43.26  care as defined in section 256B.02, subdivision 7, or a vendor 
 43.27  under contract with a county agency to provide social services 
 43.28  under section 256E.08, subdivision 4, is not a party and may not 
 43.29  request a hearing under this section, except if assisting a 
 43.30  recipient as provided in subdivision 4. 
 43.31     (c) An applicant or recipient is not entitled to receive 
 43.32  social services beyond the services included in the amended 
 43.33  community social services plan developed under section 256E.081, 
 43.34  subdivision 3, if the county agency has met the requirements in 
 43.35  section 256E.081. 
 43.36     Sec. 20.  Minnesota Statutes 1994, section 256.045, 
 44.1   subdivision 4, is amended to read: 
 44.2      Subd. 4.  [CONDUCT OF HEARINGS.] All hearings held pursuant 
 44.3   to subdivision 3, 3a, or 4a shall be conducted according to the 
 44.4   provisions of the federal Social Security Act and the 
 44.5   regulations implemented in accordance with that act to enable 
 44.6   this state to qualify for federal grants-in-aid, and according 
 44.7   to the rules and written policies of the commissioner of human 
 44.8   services.  County agencies shall install equipment necessary to 
 44.9   conduct telephone hearings.  A state human services referee may 
 44.10  schedule a telephone conference hearing when the distance or 
 44.11  time required to travel to the county agency offices will cause 
 44.12  a delay in the issuance of an order, or to promote efficiency, 
 44.13  or at the mutual request of the parties.  Hearings may be 
 44.14  conducted by telephone conferences unless the applicant, 
 44.15  recipient, or former recipient objects.  The hearing shall not 
 44.16  be held earlier than five days after filing of the required 
 44.17  notice with the county or state agency.  The state human 
 44.18  services referee shall notify all interested persons of the 
 44.19  time, date, and location of the hearing at least five days 
 44.20  before the date of the hearing.  Interested persons may be 
 44.21  represented by legal counsel or other representative of their 
 44.22  choice, including a provider of therapy services, at the hearing 
 44.23  and may appear personally, testify and offer evidence, and 
 44.24  examine and cross-examine witnesses.  The applicant, recipient, 
 44.25  or former recipient shall have the opportunity to examine the 
 44.26  contents of the case file and all documents and records to be 
 44.27  used by the county or state agency at the hearing at a 
 44.28  reasonable time before the date of the hearing and during the 
 44.29  hearing.  Upon request, the county agency shall provide 
 44.30  reimbursement for transportation, child care, photocopying, 
 44.31  medical assessment, witness fee, and other necessary and 
 44.32  reasonable costs incurred by the applicant, recipient, or former 
 44.33  recipient in connection with the appeal.  All evidence, except 
 44.34  that privileged by law, commonly accepted by reasonable people 
 44.35  in the conduct of their affairs as having probative value with 
 44.36  respect to the issues shall be submitted at the hearing and such 
 45.1   hearing shall not be "a contested case" within the meaning of 
 45.2   section 14.02, subdivision 3.  The agency must present its 
 45.3   evidence prior to or at the hearing, and may not submit evidence 
 45.4   after the hearing except by agreement of the parties at the 
 45.5   hearing, provided the recipient has the opportunity to respond. 
 45.6      Sec. 21.  Minnesota Statutes 1994, section 256.045, 
 45.7   subdivision 5, is amended to read: 
 45.8      Subd. 5.  [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] A 
 45.9   state human services referee shall conduct a hearing on the 
 45.10  appeal and shall recommend an order to the commissioner of human 
 45.11  services.  The recommended order must be based on all relevant 
 45.12  evidence and must not be limited to a review of the propriety of 
 45.13  the state or county agency's action.  A referee may take 
 45.14  official notice of adjudicative facts.  The commissioner of 
 45.15  human services may accept the recommended order of a state human 
 45.16  services referee and issue the order to the county agency and 
 45.17  the applicant, recipient, former recipient, or prepaid health 
 45.18  plan.  The commissioner on refusing to accept the recommended 
 45.19  order of the state human services referee, shall notify the 
 45.20  county agency and the applicant, recipient, former recipient, or 
 45.21  prepaid health plan of that fact and shall state reasons 
 45.22  therefor and shall allow each party ten days' time to submit 
 45.23  additional written argument on the matter.  After the expiration 
 45.24  of the ten-day period, the commissioner shall issue an order on 
 45.25  the matter to the county agency and the applicant, recipient, 
 45.26  former recipient, or prepaid health plan. 
 45.27     A party aggrieved by an order of the commissioner may 
 45.28  appeal under subdivision 7, or request reconsideration by the 
 45.29  commissioner within 30 days after the date the commissioner 
 45.30  issues the order.  The commissioner may reconsider an order upon 
 45.31  request of any party or on the commissioner's own motion.  A 
 45.32  request for reconsideration does not stay implementation of the 
 45.33  commissioner's order.  Upon reconsideration, the commissioner 
 45.34  may issue an amended order or an order affirming the original 
 45.35  order. 
 45.36     Any order of the commissioner issued under this subdivision 
 46.1   shall be conclusive upon the parties unless appeal is taken in 
 46.2   the manner provided by subdivision 7.  Any order of the 
 46.3   commissioner is binding on the parties and must be implemented 
 46.4   by the state agency or a county agency until the order is 
 46.5   reversed by the district court, or unless the commissioner or a 
 46.6   district court orders monthly assistance or aid or services paid 
 46.7   or provided under subdivision 10. 
 46.8      Except for a prepaid health plan, a vendor of medical care 
 46.9   as defined in section 256B.02, subdivision 7, or a vendor under 
 46.10  contract with a county agency to provide social services under 
 46.11  section 256E.08, subdivision 4, is not a party and may not 
 46.12  request a hearing or seek judicial review of an order issued 
 46.13  under this section, unless assisting a recipient as provided in 
 46.14  subdivision 4. 
 46.15     Sec. 22.  Minnesota Statutes 1994, section 256.98, 
 46.16  subdivision 1, is amended to read: 
 46.17     Subdivision 1.  [WRONGFULLY OBTAINING ASSISTANCE.] A person 
 46.18  who obtains, or attempts to obtain, or aids or abets any person 
 46.19  to obtain by means of a willfully false statement or 
 46.20  representation, by intentional concealment of a material fact, 
 46.21  or by impersonation or other fraudulent device, assistance to 
 46.22  which the person is not entitled or assistance greater than that 
 46.23  to which the person is entitled, or who knowingly aids or abets 
 46.24  in buying or in any way disposing of the property of a recipient 
 46.25  or applicant of assistance without the consent of the county 
 46.26  agency with intent to defeat the purposes of sections 
 46.27  256.12, 256.031 to 256.0361, 256.72 to 256.871, and chapter 
 46.28  256B, or all of these sections is guilty of theft and shall be 
 46.29  sentenced pursuant to section 609.52, subdivision 3, clauses 
 46.30  (2), (3)(a) and (c), (4), and (5). 
 46.31     Sec. 23.  Minnesota Statutes 1994, section 256.98, 
 46.32  subdivision 8, is amended to read: 
 46.33     Subd. 8.  [DISQUALIFICATION FROM PROGRAM.] Any person found 
 46.34  to be guilty of wrongfully obtaining assistance by a federal or 
 46.35  state court or by an administrative hearing determination, or 
 46.36  waiver thereof, through a disqualification consent agreement, or 
 47.1   as part of any approved diversion plan under section 401.065 in 
 47.2   either the aid to families with dependent children program or, 
 47.3   the food stamp program, the Minnesota family investment plan, 
 47.4   the general assistance or family general assistance program, the 
 47.5   Minnesota supplemental aid program, or the work readiness 
 47.6   program shall be disqualified from that program.  The needs of 
 47.7   that individual shall not be taken into consideration in 
 47.8   determining the grant level for that assistance unit:  
 47.9      (1) for six months after the first offense; 
 47.10     (2) for 12 months after the second offense; and 
 47.11     (3) permanently after the third or subsequent offense.  
 47.12     Any The period for which sanctions are imposed is 
 47.13  effective, of program disqualification shall begin on the date 
 47.14  stipulated on the advance notice of disqualification without 
 47.15  possibility of postponement for administrative stay, or 
 47.16  administrative hearing and shall continue through completion 
 47.17  unless and until the findings upon which the sanctions were 
 47.18  imposed are reversed by a court of competent jurisdiction.  The 
 47.19  period for which sanctions are imposed is not subject to 
 47.20  review.  The sanctions provided under this subdivision are in 
 47.21  addition to, and not in substitution for, any other sanctions 
 47.22  that may be provided for by law for the offense 
 47.23  involved.  Notwithstanding clauses (1) to (3), the 
 47.24  disqualification period shall not begin until the disqualified 
 47.25  individual establishes that they are otherwise eligible for the 
 47.26  program which is the subject of the disqualification.  
 47.27     Sec. 24.  Minnesota Statutes 1994, section 256.983, 
 47.28  subdivision 4, is amended to read: 
 47.29     Subd. 4.  [FUNDING.] (a) Every involved county agency shall 
 47.30  either have in place or obtain an approved contract which meets 
 47.31  all federal requirements necessary to obtain enhanced federal 
 47.32  funding for its welfare fraud control and fraud prevention 
 47.33  investigation programs.  County agency reimbursement shall be 
 47.34  made through the settlement provisions applicable to the aid to 
 47.35  families with dependent children and food stamp programs. 
 47.36     (b) After allowing an opportunity to establish compliance, 
 48.1   the commissioner will deny administrative reimbursement if for 
 48.2   any three-month period during any grant year, a county agency 
 48.3   fails to comply with fraud investigation guidelines, or fails to 
 48.4   meet the cost-effectiveness standards developed by the 
 48.5   commissioner.  This result is contingent on the commissioner 
 48.6   providing written notice, including an offer of technical 
 48.7   assistance, within 30 days of the end of the third or subsequent 
 48.8   month of noncompliance.  The county agency shall be required to 
 48.9   submit a corrective action plan to the commissioner within 30 
 48.10  days of receipt of a notice of noncompliance.  Failure to submit 
 48.11  a corrective action plan or, continued deviation from standards 
 48.12  of more than ten percent after submission of a corrective action 
 48.13  plan, will result in denial of funding for each subsequent month 
 48.14  during the grant year or billing the county agency for fraud 
 48.15  prevention investigation (FPI) service provided by the 
 48.16  commissioner.  The denial of funding shall apply to the general 
 48.17  settlement received by the county agency on a quarterly basis 
 48.18  and shall not reduce the grant amount applicable to the FPI 
 48.19  project.  
 48.20     Sec. 25.  Minnesota Statutes 1994, section 256.983, is 
 48.21  amended by adding a subdivision to read: 
 48.22     Subd. 5.  [FRAUD PREVENTION INVESTIGATION; FPI PROGRAM 
 48.23  EXPANSION; PILOT PROJECT.] (a) Within the limits of available 
 48.24  appropriations and to the extent either required or authorized 
 48.25  by applicable federal regulations, the commissioner of human 
 48.26  services shall fund a two year pilot project to test the 
 48.27  effectiveness of expanding the Fraud Prevention Investigation 
 48.28  (FPI) Program to all remaining counties regardless of county 
 48.29  AFDC case load size.  Investigative staff shall be required to 
 48.30  provide FPI services to financial assistance staff in all 
 48.31  counties within FPI districts established by the commissioner.  
 48.32     (b) FPI district services providers shall be selected based 
 48.33  on responses to requests for proposals issued by the 
 48.34  commissioner.  If proposals are not submitted or do not meet 
 48.35  standards set forth in the request for proposal, the 
 48.36  commissioner may provide or contract for FPI district service 
 49.1   providers.  Nothing in this initiative shall preclude existing 
 49.2   counties currently operating an FPI program from submitting 
 49.3   proposals to become district service providers.  
 49.4      (c) County agency financial assistance staff assigned to 
 49.5   each FPI district shall comply with FPI program operational 
 49.6   guidelines as set forth by the commissioner in section 256.986, 
 49.7   subdivisions 1 to 4.  
 49.8      (d) Optionally, qualifying counties may apply for funding 
 49.9   under section 256.986 to operate an FPI program pursuant to 
 49.10  section 256.983. 
 49.11     Sec. 26.  [256.986] [FRAUD CONTROL; PROGRAM INTEGRITY 
 49.12  REINVESTMENT PROJECT.] 
 49.13     Subdivision 1.  [PROGRAM ESTABLISHED.] Within the limits of 
 49.14  available state and federal appropriations, and to the extent 
 49.15  required or authorized by applicable federal regulations, the 
 49.16  commissioner of human services shall make funding available to 
 49.17  county agencies for the establishment of program integrity 
 49.18  reinvestment initiatives.  The project shall initially be 
 49.19  limited to those county agencies participating in federally 
 49.20  funded optional fraud control programs as of January 1, 1995.  
 49.21     Subd. 2.  [COUNTY PROPOSALS.] Each included county shall 
 49.22  develop and submit annual funding, staffing, and operating grant 
 49.23  proposals to the commissioner no later than April 30 of each 
 49.24  year.  For the first operating year only, the proposal shall be 
 49.25  submitted no later than October 30.  Each proposal shall provide 
 49.26  information on:  (a) the staffing and funding of the fraud 
 49.27  investigation and prosecution operations; (b) job descriptions 
 49.28  for agency fraud control staff; (c) contracts covering outside 
 49.29  investigative agencies; (d) operational methods to integrate the 
 49.30  use of fraud prevention investigation techniques; and (e) 
 49.31  administrative disqualification hearings and diversions into the 
 49.32  existing county fraud control and prosecution procedures.  
 49.33     Subd. 3.  [DEPARTMENT RESPONSIBILITIES.] The commissioner 
 49.34  shall provide written instructions outlining the contents of the 
 49.35  proposals to be submitted under this section.  Instructions 
 49.36  shall be made available 30 days prior to the date by which 
 50.1   proposals under subdivision 2 must be submitted.  The 
 50.2   commissioner shall establish training programs which shall be 
 50.3   attended by fraud control staff of all involved counties.  The 
 50.4   commissioner shall also develop the necessary operational 
 50.5   guidelines, forms, and reporting mechanisms which shall be used 
 50.6   by the involved counties.  
 50.7      Subd. 4.  [STANDARDS.] The commissioner shall establish 
 50.8   standards governing the performance levels of involved county 
 50.9   investigative units based on grant agreements negotiated with 
 50.10  the involved county agencies.  The standards shall take into 
 50.11  consideration and may include investigative caseloads, grant 
 50.12  savings levels, the comparison of fraud prevention and 
 50.13  prosecution directed investigations, utilization levels of 
 50.14  administrative disqualification hearings, the timely reporting 
 50.15  and implementation of disqualifications, and the timeliness of 
 50.16  reports received from prosecutors.  
 50.17     Subd. 5.  [FUNDING.] (a) Grant funds are intended to help 
 50.18  offset the reduction in federal financial participation to 50 
 50.19  percent and may be apportioned to the participating counties 
 50.20  whenever feasible, and within the commissioner's discretion, to 
 50.21  achieve this goal.  State funding shall be made available 
 50.22  contingent on counties submitting a plan that is approved by the 
 50.23  department of human services.  Failure or delay in obtaining 
 50.24  that approval shall not, however, eliminate the obligation to 
 50.25  maintain fraud control efforts at the January 1, 1995, level.  
 50.26  Additional counties may be added to the project to the extent 
 50.27  that funds are subsequently made available.  Every involved 
 50.28  county must meet all federal requirements necessary to obtain 
 50.29  federal funding for its welfare fraud control and prevention 
 50.30  programs.  County agency reimbursement shall be made through the 
 50.31  settlement provisions applicable to the AFDC and food stamp 
 50.32  programs.  
 50.33     (b) Should a county agency fail to comply with the 
 50.34  standards set, or fail to meet cost-effectiveness standards 
 50.35  developed by the commissioner for three months during any grant 
 50.36  year, the commissioner shall deny reimbursement or 
 51.1   administrative costs, after allowing an opportunity to establish 
 51.2   compliance.  
 51.3      (c) Any denial of reimbursement under clause (b) is 
 51.4   contingent on the commissioner providing written notice, 
 51.5   including an offer of technical assistance, within 30 days of 
 51.6   the end of the third or subsequent months of noncompliance.  The 
 51.7   county agency shall be required to submit a corrective action 
 51.8   plan to the commissioner within 30 days of receipt of a notice 
 51.9   of noncompliance.  Failure to submit a corrective action plan or 
 51.10  continued deviation from standards of more than ten percent 
 51.11  after submission of corrective action plan, will result in 
 51.12  denial of funding for each such month during the grant year, or 
 51.13  billing the county agency for program integrity reinvestment 
 51.14  project services provided by the commissioner.  The denial of 
 51.15  funding shall apply to the general settlement received by the 
 51.16  county agency on a quarterly basis and shall not reduce the 
 51.17  grant amount applicable to the program integrity reinvestment 
 51.18  project. 
 51.19     Sec. 27.  [256.9861] [ASSISTANCE TRANSACTION CARD FEE.] 
 51.20     Subdivision 1.  [REPLACEMENT CARD.] The commissioner of 
 51.21  human services may charge a cardholder, defined as a person in 
 51.22  whose name the transaction card was issued, a $2 fee to replace 
 51.23  an assistance transaction card.  The fees shall be appropriated 
 51.24  to the commissioner and used for electronic benefit purposes. 
 51.25     Subd. 2.  [TRANSACTION FEE.] The commissioner may charge 
 51.26  transaction fees in accordance with this subdivision up to a 
 51.27  maximum of $10 in transaction fees per cardholder per month.  In 
 51.28  a given month, the first four cash withdrawals made by an 
 51.29  individual cardholder are free.  For subsequent cash 
 51.30  withdrawals, $1 may be charged.  No transaction fee can be 
 51.31  charged if the card is used to purchase goods or services on a 
 51.32  point of sale basis.  A transaction fee subsequently set by the 
 51.33  federal government may supersede a fee established under this 
 51.34  subdivision.  The fees shall be appropriated to the commissioner 
 51.35  and used for electronic benefit purposes. 
 51.36     Sec. 28.  Minnesota Statutes 1994, section 256E.08, 
 52.1   subdivision 8, is amended to read: 
 52.2      Subd. 8.  [REPORTING BY COUNTIES.] Beginning in calendar 
 52.3   year 1980 each county shall submit to the commissioner of human 
 52.4   services a financial accounting of the county's community social 
 52.5   services fund, and other data required by the commissioner under 
 52.6   section 256E.05, subdivision 3, paragraph (g), shall include:  
 52.7      (a) A detailed statement of income and expenses 
 52.8   attributable to the fund in the preceding quarter; and 
 52.9      (b) A statement of the source and application of all money 
 52.10  used for social services programs by the county during the 
 52.11  preceding quarter, including the number of clients served and 
 52.12  expenditures for each service provided, as required by the 
 52.13  commissioner of human services.  
 52.14     In addition, each county shall submit to the commissioner 
 52.15  of human services no later than February 15 of each year, a 
 52.16  detailed balance sheet of the community social development fund 
 52.17  for the preceding calendar year.  
 52.18     If county boards have joined or designated human service 
 52.19  boards for purposes of providing community social services 
 52.20  programs, the county boards may submit a joint statement or the 
 52.21  human service board shall submit the statement, as applicable.  
 52.22     Sec. 29.  [MCLEOD COUNTY; COUNTY OFFICES OUTSIDE COUNTY 
 52.23  SEAT.] 
 52.24     Notwithstanding Minnesota Statutes, section 382.04 to the 
 52.25  contrary, the McLeod county auditor, treasurer, social service 
 52.26  director, and recorder may temporarily office at a location in 
 52.27  Glencoe township.  The authority provided in this section 
 52.28  expires six years after final enactment. 
 52.29     Sec. 30.  [EFFECTIVE DATE.] 
 52.30     Subdivision 1.  Sections 3 to 13 (245A.03, subd. 2a; 
 52.31  245A.035, subd. 1-6; 245A.04, subd. 3; 245A.04, subd. 3b; 
 52.32  245A.04, subd. 7; 245A.04, subd. 9; 245A.06, subd. 2; 245A.06, 
 52.33  subd. 4; 245A.06, subd. 7; 245A.07, subd. 3; 245A.14, subd. 6) 
 52.34  are effective the day following final enactment. 
 52.35     Subd. 2.  Sections 18 (256.034, subd. 1); 22 (256.98, subd. 
 52.36  1); and 23 (256.98, subd. 8), are effective July 1, 1995. 
 53.1      Subd. 3.  Under Minnesota Statutes, section 645.023, 
 53.2   subdivision 1, clause (a), section 29 takes effect, without 
 53.3   local approval, the day following final enactment. 
 53.4                              ARTICLE 3 
 53.5                    LIFE SKILLS; SELF-SUFFICIENCY 
 53.6      Section 1.  Minnesota Statutes 1994, section 246.23, 
 53.7   subdivision 2, is amended to read: 
 53.8      Subd. 2.  [CHEMICAL DEPENDENCY TREATMENT.] The commissioner 
 53.9   shall maintain a regionally based, state-administered system of 
 53.10  chemical dependency programs.  Counties may refer individuals 
 53.11  who are eligible for services under chapter 254B to the chemical 
 53.12  dependency units in the regional treatment centers.  A 15 
 53.13  percent county share of the per diem cost of treatment is 
 53.14  required for individuals served within the treatment capacity 
 53.15  funded by direct legislative appropriation.  By July 1, 1991, 
 53.16  the commissioner shall establish criteria for admission to the 
 53.17  chemical dependency units that will maximize federal and private 
 53.18  funding sources, fully utilize the regional treatment center 
 53.19  capacity, and make state-funded treatment capacity available to 
 53.20  counties on an equitable basis.  The admission criteria may be 
 53.21  adopted without rulemaking.  Existing rules governing placements 
 53.22  under chapters 254A and 254B do not apply to admissions to the 
 53.23  capacity funded by direct appropriation.  Private and 
 53.24  third-party collections and payments are appropriated to the 
 53.25  commissioner for the operation of the chemical dependency 
 53.26  units.  In addition to the chemical dependency treatment 
 53.27  capacity funded by direct legislative appropriation, the 
 53.28  regional treatment centers may provide treatment to additional 
 53.29  individuals whose treatment is paid for out of the chemical 
 53.30  dependency consolidated treatment fund under chapter 254B, in 
 53.31  which case placement rules adopted under chapter 254B apply,; to 
 53.32  those individuals who are ineligible but committed for treatment 
 53.33  under chapter 253B as provided in section 254B.05, subdivision 
 53.34  4; or to individuals covered through other nonstate payment 
 53.35  sources.  
 53.36     Sec. 2.  Minnesota Statutes 1994, section 252.275, 
 54.1   subdivision 3, is amended to read: 
 54.2      Subd. 3.  [REIMBURSEMENT.] Counties shall be reimbursed for 
 54.3   all expenditures made pursuant to subdivision 1 at a rate of 70 
 54.4   percent, up to the allocation determined pursuant to 
 54.5   subdivisions 4, 4a, and 4b.  However, the commissioner shall not 
 54.6   reimburse costs of services for any person if the costs exceed 
 54.7   the state share of the average medical assistance costs for 
 54.8   services provided by intermediate care facilities for a person 
 54.9   with mental retardation or a related condition for the same 
 54.10  fiscal year, and shall not reimburse costs of a one-time living 
 54.11  allowance for any person if the costs exceed $1,500 in a state 
 54.12  fiscal year.  For the biennium ending June 30, 1993, the 
 54.13  commissioner shall not reimburse costs in excess of the 85th 
 54.14  percentile of hourly service costs based upon the cost 
 54.15  information supplied to the legislature in the proposed budget 
 54.16  for the biennium.  The commissioner may make payments to each 
 54.17  county in quarterly installments.  The commissioner may certify 
 54.18  an advance of up to 25 percent of the allocation.  Subsequent 
 54.19  payments shall be made on a reimbursement basis for reported 
 54.20  expenditures and may be adjusted for anticipated spending 
 54.21  patterns.  
 54.22     Sec. 3.  Minnesota Statutes 1994, section 252.275, 
 54.23  subdivision 4, is amended to read: 
 54.24     Subd. 4.  [FORMULA.] Effective January 1, 1992, The 
 54.25  commissioner shall allocate funds on a calendar year basis.  For 
 54.26  calendar year 1992, funds shall be allocated based on each 
 54.27  county's portion of the statewide reimbursement received under 
 54.28  this section for state fiscal year 1991.  For subsequent 
 54.29  calendar years, funds shall be Beginning with the calendar year 
 54.30  in the 1996 grant period, funds shall be allocated first in 
 54.31  amounts equal to each county's guaranteed floor according to 
 54.32  subdivision 4b, with any remaining available funds allocated 
 54.33  based on each county's portion of the statewide expenditures 
 54.34  eligible for reimbursement under this section during the 12 
 54.35  months ending on June 30 of the preceding calendar year. 
 54.36     If the legislature appropriates funds for special purposes, 
 55.1   the commissioner may allocate the funds based on proposals 
 55.2   submitted by the counties to the commissioner in a format 
 55.3   prescribed by the commissioner.  Nothing in this section 
 55.4   prevents a county from using other funds to pay for additional 
 55.5   costs of semi-independent living services. 
 55.6      Sec. 4.  Minnesota Statutes 1994, section 252.275, 
 55.7   subdivision 8, is amended to read: 
 55.8      Subd. 8.  [USE OF FEDERAL FUNDS AND TRANSFER OF FUNDS TO 
 55.9   MEDICAL ASSISTANCE.] (a) The commissioner shall make every 
 55.10  reasonable effort to maximize the use of federal funds for 
 55.11  semi-independent living services. 
 55.12     (b) The commissioner shall reduce the payments to be made 
 55.13  under this section to each county from January 1, 1994 to June 
 55.14  30, 1996, by the amount of the state share of medical assistance 
 55.15  reimbursement for services other than residential services 
 55.16  provided under the home and community-based waiver program under 
 55.17  section 256B.092 from January 1, 1994 to June 30, 1996, for 
 55.18  clients for whom the county is financially responsible and who 
 55.19  have been transferred by the county from the semi-independent 
 55.20  living services program to the home and community-based waiver 
 55.21  program.  Unless otherwise specified, all reduced amounts shall 
 55.22  be transferred to the medical assistance state account. 
 55.23     (c) For fiscal year 1997, the base appropriation available 
 55.24  under this section shall be reduced by the amount of the state 
 55.25  share of medical assistance reimbursement for services other 
 55.26  than residential services provided under the home and 
 55.27  community-based waiver program authorized in section 256B.092 
 55.28  from January 1, 1995 to December 31, 1995, for persons who have 
 55.29  been transferred from the semi-independent living services 
 55.30  program to the home and community-based waiver program.  The 
 55.31  base appropriation for the medical assistance state account 
 55.32  shall be increased by the same amount. 
 55.33     (d) For purposes of calculating the guaranteed floor under 
 55.34  subdivision 4b and to establish the calendar year 1996 
 55.35  allocations, each county's original allocation for calendar year 
 55.36  1995 shall be reduced by the amount transferred to the state 
 56.1   medical assistance account under paragraph (b) during the six 
 56.2   months ending on June 30, 1995.  For purposes of calculating the 
 56.3   guaranteed floor under subdivision 4b and to establish the 
 56.4   calendar year 1997 allocations, each county's original 
 56.5   allocation for calendar year 1996 shall be reduced by the amount 
 56.6   transferred to the state medical assistance account under 
 56.7   paragraph (b) during the six months ending on June 30, 1996 
 56.8   December 31, 1995. 
 56.9      Sec. 5.  Minnesota Statutes 1994, section 252.292, 
 56.10  subdivision 4, is amended to read: 
 56.11     Subd. 4.  [FACILITY RATES.] For purposes of this section, 
 56.12  the commissioner shall establish payment rates under section 
 56.13  256B.501 and Minnesota Rules, parts 9553.0010 to 9553.0080, 
 56.14  except that, in order to facilitate an orderly transition of 
 56.15  residents from community intermediate care facilities for 
 56.16  persons with mental retardation or related conditions to 
 56.17  services provided under the home and community-based services 
 56.18  program, the commissioner may, in a contract with the provider, 
 56.19  modify the effect of provisions in Minnesota Rules, parts 
 56.20  9553.0010 to 9553.0080, as stated in clauses (a) to (i): 
 56.21     (a) extend the interim and settle-up rate provisions to 
 56.22  include facilities covered by this section; 
 56.23     (b) extend the length of the interim period but not to 
 56.24  exceed 24 12 months.  The commissioner may grant a variance to 
 56.25  exceed the 24-month 12-month interim period, as necessary, for 
 56.26  facilities which are licensed and certified to serve more than 
 56.27  99 persons.  In no case shall the commissioner approve an 
 56.28  interim period which exceeds 36 24 months; 
 56.29     (c) waive the investment per bed limitations for the 
 56.30  interim period and the settle-up rate; 
 56.31     (d) limit the amount of reimbursable expenses related to 
 56.32  the acquisition of new capital assets; 
 56.33     (e) prohibit the acquisition of additional capital debt or 
 56.34  refinancing of existing capital debt unless prior approval is 
 56.35  obtained from the commissioner; 
 56.36     (f) establish an administrative operating cost limitation 
 57.1   for the interim period and the settle-up rate; 
 57.2      (g) require the retention of financial and statistical 
 57.3   records until the commissioner has audited the interim period 
 57.4   and the settle-up rate; 
 57.5      (h) require that the interim period be audited by a 
 57.6   certified or licensed public accounting firm; or 
 57.7      (i) change any other provision to which all parties to the 
 57.8   contract agree. 
 57.9      Sec. 6.  Minnesota Statutes 1994, section 252.46, 
 57.10  subdivision 1, is amended to read: 
 57.11     Subdivision 1.  [RATES.] (a) Payment rates to vendors, 
 57.12  except regional centers, for county-funded day training and 
 57.13  habilitation services and transportation provided to persons 
 57.14  receiving day training and habilitation services established by 
 57.15  a county board are governed by subdivisions 2 to 19.  The 
 57.16  commissioner shall approve the following three payment rates for 
 57.17  services provided by a vendor: 
 57.18     (1) a full-day service rate for persons who receive at 
 57.19  least six service hours a day, including the time it takes to 
 57.20  transport the person to and from the service site; 
 57.21     (2) a partial-day service rate that must not exceed 75 
 57.22  percent of the full-day service rate for persons who receive 
 57.23  less than a full day of service; and 
 57.24     (3) a transportation rate for providing, or arranging and 
 57.25  paying for, transportation of a person to and from the person's 
 57.26  residence to the service site.  
 57.27     (b) The commissioner may also approve an hourly job-coach, 
 57.28  follow-along rate for services provided by one employee en route 
 57.29  to or from community locations to supervise, support, and assist 
 57.30  one person receiving the vendor's services to learn job-related 
 57.31  skills necessary to obtain or retain employment when and where 
 57.32  no other persons receiving services are present and when all the 
 57.33  following criteria are met: 
 57.34     (1) the vendor requests and the county recommends the 
 57.35  optional rate; 
 57.36     (2) the service is prior authorized by the county on the 
 58.1   medicaid management information system for no more than 414 
 58.2   hours in a 12-month period and the daily per person charge to 
 58.3   medical assistance does not exceed the vendor's approved full 
 58.4   day plus transportation rates; 
 58.5      (3) separate full day, partial day, and transportation 
 58.6   rates are not billed for the same person on the same day; 
 58.7      (4) the approved hourly rate does not exceed the sum of the 
 58.8   vendor's current average hourly direct service wage, including 
 58.9   fringe benefits and taxes, plus a component equal to the 
 58.10  vendor's average hourly nondirect service wage expenses; and 
 58.11     (5) the actual revenue received for provision of hourly 
 58.12  job-coach, follow-along services is subtracted from the vendor's 
 58.13  total expenses for the same time period and those adjusted 
 58.14  expenses are used for determining recommended full day and 
 58.15  transportation payment rates under subdivision 5 in accordance 
 58.16  with the limitations in subdivision 3. 
 58.17     (c) Medical assistance rates for home and community-based 
 58.18  service provided under section 256B.501, subdivision 4, by 
 58.19  licensed vendors of day training and habilitation services must 
 58.20  not be greater than the rates for the same services established 
 58.21  by counties under sections 252.40 to 252.47.  For very dependent 
 58.22  persons with special needs the commissioner may approve an 
 58.23  exception to the approved payment rate under section 256B.501, 
 58.24  subdivision 4 or 8. 
 58.25     Sec. 7.  Minnesota Statutes 1994, section 252.46, 
 58.26  subdivision 3, is amended to read: 
 58.27     Subd. 3.  [RATE MAXIMUM.] Unless a variance is granted 
 58.28  under subdivision 6, the maximum payment rates for each vendor 
 58.29  for a calendar year must be equal to the payment rates approved 
 58.30  by the commissioner for that vendor in effect December 1 of the 
 58.31  previous calendar year.  The commissioner of finance shall 
 58.32  include as a budget change request in each biennial detailed 
 58.33  expenditure budget submitted to the legislature under section 
 58.34  16A.11 annual inflation adjustments in reimbursement rates for 
 58.35  each vendor, based upon the projected percentage change in the 
 58.36  urban consumer price index, all items, published by the United 
 59.1   States Department of Labor, for the upcoming calendar year over 
 59.2   the current calendar year.  The commissioner shall not provide 
 59.3   an annual inflation adjustment for the biennium ending June 30, 
 59.4   1993. 
 59.5      Sec. 8.  Minnesota Statutes 1994, section 252.46, 
 59.6   subdivision 6, is amended to read: 
 59.7      Subd. 6.  [VARIANCES.] (a) A variance from the minimum or 
 59.8   maximum payment rates in subdivisions 2 and 3 may be granted by 
 59.9   the commissioner when the vendor requests and the county board 
 59.10  submits to the commissioner a written variance request on forms 
 59.11  supplied by the commissioner with the recommended payment rates. 
 59.12     (a) A variance to the rate maximum may be utilized for 
 59.13  costs associated with compliance with state administrative 
 59.14  rules, compliance with court orders, capital costs required for 
 59.15  continued licensure, increased insurance costs, start-up and 
 59.16  conversion costs for supported employment, direct service staff 
 59.17  salaries and benefits, transportation, and other program related 
 59.18  costs when any of the criteria in clauses (1) to (3) and (2) is 
 59.19  also met: 
 59.20     (1) change is necessary to comply with licensing citations; 
 59.21  or 
 59.22     (2) a significant change is approved by the commissioner 
 59.23  under section 252.28 that is necessary to provide authorized 
 59.24  services to new clients with very severe self-injurious or 
 59.25  assaultive behavior, or medical conditions requiring delivery of 
 59.26  physician-prescribed medical interventions requiring one-to-one 
 59.27  staffing for at least 15 minutes each time they are performed, 
 59.28  or to new clients directly discharged to the vendor's program 
 59.29  from a regional treatment center; or 
 59.30     (3) a significant increase in the average level of staffing 
 59.31  is needed to provide authorized services approved by the 
 59.32  commissioner under section 252.28, that is necessitated by a 
 59.33  decrease in licensed capacity or loss of clientele when counties 
 59.34  choose alternative services under Laws 1992, chapter 513, 
 59.35  article 9, section 41. 
 59.36     A variance under this paragraph may be approved only if the 
 60.1   costs to the medical assistance program do not exceed the 
 60.2   medical assistance costs for all clients served by the 
 60.3   alternatives and all clients remaining in the existing services. 
 60.4      (b) A variance to the rate minimum may be granted when (1) 
 60.5   the county board contracts for increased services from a vendor 
 60.6   and for some or all individuals receiving services from the 
 60.7   vendor lower per unit fixed costs result or (2) when the actual 
 60.8   costs of delivering authorized service over a 12-month contract 
 60.9   period have decreased. 
 60.10     (c) The written variance request under this subdivision 
 60.11  must include documentation that all the following criteria have 
 60.12  been met: 
 60.13     (1) The commissioner and the county board have both 
 60.14  conducted a review and have identified a need for a change in 
 60.15  the payment rates and recommended an effective date for the 
 60.16  change in the rate. 
 60.17     (2) The vendor documents efforts to reallocate current 
 60.18  staff and any additional staffing needs cannot be met by using 
 60.19  temporary special needs rate exceptions under Minnesota Rules, 
 60.20  parts 9510.1020 to 9510.1140. 
 60.21     (3) The vendor documents that financial resources have been 
 60.22  reallocated before applying for a variance.  No variance may be 
 60.23  granted for equipment, supplies, or other capital expenditures 
 60.24  when depreciation expense for repair and replacement of such 
 60.25  items is part of the current rate. 
 60.26     (4) For variances related to loss of clientele, the vendor 
 60.27  documents the other program and administrative expenses, if any, 
 60.28  that have been reduced. 
 60.29     (5) The county board submits verification of the conditions 
 60.30  for which the variance is requested, a description of the nature 
 60.31  and cost of the proposed changes, and how the county will 
 60.32  monitor the use of money by the vendor to make necessary changes 
 60.33  in services.  
 60.34     (6) The county board's recommended payment rates do not 
 60.35  exceed 95 percent of the greater of 125 percent of the current 
 60.36  statewide median or 125 percent of the regional average payment 
 61.1   rates, whichever is higher, for each of the regional commission 
 61.2   districts under sections 462.381 to 462.396 in which the vendor 
 61.3   is located except for the following:  when a variance is 
 61.4   recommended to allow authorized service delivery to new clients 
 61.5   with severe self-injurious or assaultive behaviors or with 
 61.6   medical conditions requiring delivery of physician prescribed 
 61.7   medical interventions, or to persons being directly discharged 
 61.8   from a regional treatment center to the vendor's program, those 
 61.9   persons must be assigned a payment rate of 200 percent of the 
 61.10  current statewide average rates.  All other clients receiving 
 61.11  services from the vendor must be assigned a payment rate equal 
 61.12  to the vendor's current rate unless the vendor's current rate 
 61.13  exceeds 95 percent of 125 percent of the statewide median or 125 
 61.14  percent of the regional average payment rates, whichever is 
 61.15  higher.  When the vendor's rates exceed 95 percent of 125 
 61.16  percent of the statewide median or 125 percent of the regional 
 61.17  average rates, the maximum rates assigned to all other clients 
 61.18  must be equal to the greater of 95 percent of 125 percent of the 
 61.19  statewide median or 125 percent of the regional average rates.  
 61.20  The maximum payment rate that may be recommended for the vendor 
 61.21  under these conditions is determined by multiplying the number 
 61.22  of clients at each limit by the rate corresponding to that limit 
 61.23  and then dividing the sum by the total number of clients. 
 61.24     (7) The vendor has not received a variance under this 
 61.25  subdivision in the past 12 months.  
 61.26     (d) The commissioner shall have 60 calendar days from the 
 61.27  date of the receipt of the complete request to accept or reject 
 61.28  it, or the request shall be deemed to have been granted.  If the 
 61.29  commissioner rejects the request, the commissioner shall state 
 61.30  in writing the specific objections to the request and the 
 61.31  reasons for its rejection. 
 61.32     Sec. 9.  Minnesota Statutes 1994, section 252.46, 
 61.33  subdivision 17, is amended to read: 
 61.34     Subd. 17.  [HOURLY RATE STRUCTURE.] Counties participating 
 61.35  as host counties under the pilot study of hourly rates 
 61.36  established under Laws 1988, chapter 689, article 2, section 
 62.1   117, may recommend continuation of the hourly rates for 
 62.2   participating vendors.  The recommendation must be made annually 
 62.3   under subdivision 5 and according to the methods and standards 
 62.4   provided by the commissioner.  The commissioner shall approve 
 62.5   the hourly rates when service authorization, billing, and 
 62.6   payment for services is possible through the Medicaid management 
 62.7   information system and the other criteria in this subdivision 
 62.8   are met.  Counties and vendors operating under the pilot study 
 62.9   of hourly rates established under Laws 1988, chapter 689, 
 62.10  article 2, section 117, shall work with the commissioner to 
 62.11  translate the hourly rates and actual expenditures into rates 
 62.12  meeting the criteria in subdivisions 1 to 16 unless hourly rates 
 62.13  are approved under this subdivision.  If the rates meeting the 
 62.14  criteria in subdivisions 1 to 16 are lower than the county's or 
 62.15  vendor's current rate, the county or vendor must continue to 
 62.16  receive the current rate. 
 62.17     Sec. 10.  Minnesota Statutes 1994, section 252.46, is 
 62.18  amended by adding a subdivision to read: 
 62.19     Subd. 19.  [STUDY OF VENDORS.] The commissioner shall study 
 62.20  the feasibility of grouping vendors of similar size, location, 
 62.21  direct service staffing needs or performance outcomes to 
 62.22  establish payment rate limits that define cost-effective 
 62.23  service.  Based on the conclusions of the feasibility study the 
 62.24  department shall consider developing a method to redistribute 
 62.25  dollars from less cost effective to more cost-effective services 
 62.26  based on vendor achievement of performance outcomes.  The 
 62.27  department shall report to the legislature by January 15, 1996, 
 62.28  with results of the study and recommendations for further 
 62.29  action.  The department shall consult with an advisory committee 
 62.30  representing counties, service consumers, vendors, and the 
 62.31  legislature. 
 62.32     Sec. 11.  Minnesota Statutes 1994, section 252.46, is 
 62.33  amended by adding a subdivision to read: 
 62.34     Subd. 20.  [VENDOR APPEALS.] With the concurrence of the 
 62.35  county board, a vendor may appeal the commissioner's rejection 
 62.36  of a variance request which has been submitted by the county 
 63.1   under subdivision 6 and may appeal the commissioner's denial 
 63.2   under subdivision 9 of a rate which has been recommended by the 
 63.3   county.  To appeal, the vendor and county board must file a 
 63.4   written notice of appeal with the commissioner.  The notice of 
 63.5   appeal must be filed or received by the commissioner within 45 
 63.6   days of the postmark date on the commissioner's notification to 
 63.7   the vendor and county agency that a variance request or county 
 63.8   recommended rate has been denied.  The notice of appeal must 
 63.9   specify the reasons for the appeal, the dollar amount in 
 63.10  dispute, and the basis in statute or rule for challenging the 
 63.11  commissioner's decision. 
 63.12     Within 45 days of receipt of the notice of appeal, the 
 63.13  commissioner must convene a reconciliation conference to attempt 
 63.14  to resolve the rate dispute.  If the dispute is not resolved to 
 63.15  the satisfaction of the parties, the parties may initiate a 
 63.16  contested case proceeding under sections 14.57 to 14.69.  In a 
 63.17  contested case hearing held under this section, the appealing 
 63.18  party must demonstrate by a preponderance of the evidence that 
 63.19  the commissioner incorrectly applied the governing law or 
 63.20  regulations, or that the commissioner improperly exercised the 
 63.21  commissioner's discretion, in refusing to grant a variance or in 
 63.22  refusing to adopt a county recommended rate. 
 63.23     Until an appeal is fully resolved, payments must continue 
 63.24  at the existing rate pending the results of the appeal.  
 63.25  Retroactive payments consistent with the final decision shall be 
 63.26  made after the appeal is fully resolved. 
 63.27     Sec. 12.  [252.60] [LOCALLY MANAGED INTEGRATED FUND 
 63.28  DEMONSTRATION PILOT PROJECT.] 
 63.29     Subdivision 1.  [PURPOSE.] In order to demonstrate 
 63.30  substantial change in the management and delivery of services to 
 63.31  persons with mental retardation or related conditions, the 
 63.32  commissioner of human services may cooperatively establish pilot 
 63.33  projects with county agencies that are proposed and designed by 
 63.34  local planning groups that include county and provider agencies, 
 63.35  consumers, and advocacy agencies.  The pilot projects are to 
 63.36  determine whether a locally managed integrated funding model 
 64.1   covering services for persons with mental retardation or related 
 64.2   conditions is an effective mechanism to achieve the outcomes 
 64.3   prescribed in Laws 1993, First Special Session chapter 1, 
 64.4   article 4, section 12, regarding:  (1) comprehensive reform; (2) 
 64.5   service access and coordination; and (3) regulatory standards 
 64.6   and quality assurance.  These pilot projects shall result in a 
 64.7   locally managed service system characterized by increased 
 64.8   consumer choice, flexibility in the types and delivery methods 
 64.9   of services, improved access to and coordination and continuity 
 64.10  of services, streamlined and unified regulations and controls, 
 64.11  and enhanced cost controls.  For purposes of this project, 
 64.12  waiver of certain statutory provisions is necessary in 
 64.13  accordance with this section.  The commissioner shall seek all 
 64.14  federal waivers as necessary to implement this section.  
 64.15     Subd. 2.  [DEFINITIONS.] (a) "Eligible persons" means 
 64.16  individuals who reside within the geographic area designated 
 64.17  under subdivision 3 and who are otherwise eligible as defined in 
 64.18  section 256B.092.  Other persons with a developmental disability 
 64.19  as defined in United States Code, title 42, section 6001, may be 
 64.20  determined eligible by the local managing entity to participate 
 64.21  in these pilots. 
 64.22     (b) "Local managing entity" means the agency or alliance of 
 64.23  agencies under contract with the Minnesota department of human 
 64.24  services and participating in each local demonstration project 
 64.25  that manages the resources and the delivery of services to 
 64.26  eligible individuals. 
 64.27     Subd. 3.  [GEOGRAPHIC AREA.] The commissioner shall 
 64.28  designate the geographic areas in which eligible individuals and 
 64.29  organizations will be included in the project. 
 64.30     Subd. 4.  [PAYMENT.] The commissioner shall establish the 
 64.31  method and amount of payments and prepayments for the management 
 64.32  and delivery of services.  The managing entity may integrate 
 64.33  these funds with local resources appropriated for services to 
 64.34  persons with mental retardation or related conditions and may 
 64.35  require transfer of resources from other county agencies for 
 64.36  eligible persons who reside within the geographic area and who 
 65.1   are the financial responsibility of another county.  The 
 65.2   commissioner shall contract with the local managing entity and 
 65.3   the contract shall be consistent with these established methods 
 65.4   and amounts for payment. 
 65.5      Subd. 5.  [SERVICE DELIVERY.] Each managing entity shall be 
 65.6   responsible for management and delivery of services for eligible 
 65.7   individuals within their geographic area.  Managing entities: 
 65.8      (1) shall accept the prospective, per capita payment from 
 65.9   the commissioner in return for the provision of comprehensive 
 65.10  and coordinated services for eligible individuals enrolled in 
 65.11  the project; 
 65.12     (2) may contract with health care, long-term care, and 
 65.13  other providers to serve eligible persons enrolled in the 
 65.14  project; and 
 65.15     (3) may integrate state, federal, and county resources into 
 65.16  an account and draw funding from this single source to purchase 
 65.17  or provide services for eligible persons. 
 65.18     Subd. 6.  [REPORTING.] Each participating local managing 
 65.19  entity shall submit information as required by the commissioner, 
 65.20  including data required for assessing client satisfaction, 
 65.21  quality of care, cost, and utilization of services for purposes 
 65.22  of project evaluation. 
 65.23     Subd. 7.  [ALTERNATIVE METHODS.] Upon federal waiver 
 65.24  approval to proceed with these pilots, the commissioner may 
 65.25  approve alternative methods to meet the intent of existing rules 
 65.26  and statutes relating to services for eligible persons.  Prior 
 65.27  to approving alternative methods that meet the intent of 
 65.28  existing rule or statute, including rights and procedural 
 65.29  protections under sections 245.825; 245.91 to 245.97; 252.41, 
 65.30  subdivision 9; 256.045; 256B.092; 626.556; and 626.557, and the 
 65.31  county agency's responsibility to arrange for appropriate 
 65.32  services and procedures for the monitoring of psychotropic 
 65.33  medications, the commissioner shall notify the chairs of health 
 65.34  and human services policy and finance committees within 30 days 
 65.35  of receiving federal waiver approval, whether alternative 
 65.36  methods to specific statutes need to be used in order to 
 66.1   accomplish the goals of the pilots.  The commissioner shall 
 66.2   report to the legislature by February 1, 1996, on the status of 
 66.3   the federal waiver request and, if the federal waiver is being 
 66.4   implemented on that date, on the nature of any alternative 
 66.5   methods being used for client protection. 
 66.6      Subd. 8.  [NUMBER OF GRANTS.] For the biennium ending June 
 66.7   30, 1997, up to three pilot projects may be operational, and the 
 66.8   commissioner may provide planning grants for up to three 
 66.9   additional local planning groups to expand the projects in the 
 66.10  next biennium. 
 66.11     Sec. 13.  Minnesota Statutes 1994, section 254A.17, 
 66.12  subdivision 3, is amended to read: 
 66.13     Subd. 3.  [STATEWIDE DETOXIFICATION TRANSPORTATION 
 66.14  PROGRAM.] The commissioner shall provide grants to counties, 
 66.15  Indian reservations, other nonprofit agencies, or local 
 66.16  detoxification programs for provision of transportation of 
 66.17  intoxicated individuals to detoxification programs, to open 
 66.18  shelters, and to secure shelters as defined in section 254A.085 
 66.19  and shelters serving intoxicated persons.  In state fiscal years 
 66.20  1994 and, 1995, and 1996, funds shall be allocated to counties 
 66.21  in proportion to each county's allocation in fiscal year 1993.  
 66.22  In subsequent fiscal years, funds shall be allocated among 
 66.23  counties annually in proportion to each county's average number 
 66.24  of detoxification admissions for the prior two years, except 
 66.25  that no county shall receive less than $400.  Unless a county 
 66.26  has approved a grant of funds under this section, the 
 66.27  commissioner shall make quarterly payments of detoxification 
 66.28  funds to a county only after receiving an invoice describing the 
 66.29  number of persons transported and the cost of transportation 
 66.30  services for the previous quarter.  A county must make a good 
 66.31  faith effort to provide the transportation service through the 
 66.32  most cost-effective community-based agencies or organizations 
 66.33  eligible to provide the service.  The program administrator and 
 66.34  all staff of the program must report to the office of the 
 66.35  ombudsman for mental health and mental retardation within 24 
 66.36  hours of its occurrence, any serious injury, as defined in 
 67.1   section 245.91, subdivision 6, or the death of a person admitted 
 67.2   to the shelter.  The ombudsman shall acknowledge in writing the 
 67.3   receipt of all reports made to the ombudsman's office under this 
 67.4   section.  Acknowledgment must be mailed to the facility and to 
 67.5   the county social service agency within five working days of the 
 67.6   day the report was made.  In addition, the program administrator 
 67.7   and staff of the program must comply with all of the 
 67.8   requirements of section 626.557, the vulnerable adults act. 
 67.9      Sec. 14.  Minnesota Statutes 1994, section 254B.02, 
 67.10  subdivision 1, is amended to read: 
 67.11     Subdivision 1.  [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 
 67.12  The chemical dependency funds appropriated for allocation shall 
 67.13  be placed in a special revenue account.  For the fiscal year 
 67.14  beginning July 1, 1987, funds shall be transferred to operate 
 67.15  the vendor payment, invoice processing, and collections system 
 67.16  for one year.  The commissioner shall annually transfer funds 
 67.17  from the chemical dependency fund to pay for operation of the 
 67.18  drug and alcohol abuse normative evaluation system and to pay 
 67.19  for all costs incurred by adding two positions for licensing of 
 67.20  chemical dependency treatment and rehabilitation programs 
 67.21  located in hospitals for which funds are not otherwise 
 67.22  appropriated.  The commissioner shall annually divide the money 
 67.23  available in the chemical dependency fund that is not held in 
 67.24  reserve by counties from a previous allocation.  Twelve percent 
 67.25  of the remaining money must be reserved for treatment of 
 67.26  American Indians by eligible vendors under section 254B.05.  The 
 67.27  remainder of the money must be allocated among the counties 
 67.28  according to the following formula, using state demographer data 
 67.29  and other data sources determined by the commissioner: 
 67.30     (a) The county non-Indian and over age 14 per capita-months 
 67.31  of eligibility for aid to families with dependent children, 
 67.32  general assistance, and medical assistance is divided by the 
 67.33  total state non-Indian and over age 14 per capita-months of 
 67.34  eligibility to determine the caseload factor for each county. 
 67.35     (b) The average median married couple income for the 
 67.36  previous three years for the state is divided by the average 
 68.1   median married couple income for the previous three years for 
 68.2   each county to determine the income factor.  
 68.3      (c) The non-Indian and over age 14 population of the county 
 68.4   is multiplied by the sum of the income factor and the caseload 
 68.5   factor to determine the adjusted population.  
 68.6      (a) For purposes of this formula, American Indians and 
 68.7   children under age 14 are subtracted from the population of each 
 68.8   county to determine the restricted population. 
 68.9      (b) The amount of chemical dependency fund expenditures for 
 68.10  entitled persons for services not covered by prepaid plans 
 68.11  governed by section 256B.69 in the previous year is divided by 
 68.12  the amount of chemical dependency fund expenditures for entitled 
 68.13  persons for all services to determine the proportion of exempt 
 68.14  service expenditures for each county. 
 68.15     (c) The prepaid plan months of eligibility is multiplied by 
 68.16  the proportion of exempt service expenditures to determine the 
 68.17  adjusted prepaid plan months of eligibility for each county. 
 68.18     (d) The adjusted prepaid plan months of eligibility is 
 68.19  added to the number of restricted population fee for service 
 68.20  months of eligibility for aid to families with dependent 
 68.21  children, general assistance, and medical assistance and divided 
 68.22  by the county restricted population to determine county per 
 68.23  capita months of covered service eligibility. 
 68.24     (e) The number of adjusted prepaid plan months of 
 68.25  eligibility for the state is added to the number of fee for 
 68.26  service months of eligibility for aid to families with dependent 
 68.27  children, general assistance, and medical assistance for the 
 68.28  state restricted population and divided by the state restricted 
 68.29  population to determine state per capita months of covered 
 68.30  service eligibility. 
 68.31     (f) The county per capita months of covered service 
 68.32  eligibility is divided by the state per capita months of covered 
 68.33  service eligibility to determine the county welfare caseload 
 68.34  factor. 
 68.35     (g) The median married couple income for the most recent 
 68.36  three-year period available for the state is divided by the 
 69.1   median married couple income for the same period for each county 
 69.2   to determine the income factor for each county. 
 69.3      (h) The county restricted population is multiplied by the 
 69.4   sum of the county welfare caseload factor and the county income 
 69.5   factor to determine the adjusted population. 
 69.6      (d) (i) $15,000 shall be allocated to each county.  
 69.7      (e) (j) The remaining funds shall be allocated proportional 
 69.8   to the county adjusted population. 
 69.9      Sec. 15.  Minnesota Statutes 1994, section 254B.05, 
 69.10  subdivision 1, is amended to read: 
 69.11     Subdivision 1.  [LICENSURE REQUIRED.] Programs licensed by 
 69.12  the commissioner are eligible vendors.  Hospitals may apply for 
 69.13  and receive licenses to be eligible vendors, notwithstanding the 
 69.14  provisions of section 245A.03.  American Indian programs located 
 69.15  on federally recognized tribal lands that provide chemical 
 69.16  dependency primary treatment, extended care, transitional 
 69.17  residence, or outpatient treatment services, and are licensed by 
 69.18  tribal government are eligible vendors.  Detoxification programs 
 69.19  are not eligible vendors.  Programs that are not licensed as a 
 69.20  chemical dependency residential or nonresidential treatment 
 69.21  program by the commissioner or by tribal government are not 
 69.22  eligible vendors.  To be eligible for payment under the 
 69.23  Consolidated Chemical Dependency Treatment Fund, a vendor must 
 69.24  participate in the Drug and Alcohol Abuse Normative Evaluation 
 69.25  System and the treatment accountability plan. 
 69.26     Sec. 16.  [256.476] [CONSUMER SUPPORT PROGRAM.] 
 69.27     Subdivision 1.  [PURPOSE AND GOALS.] The commissioner of 
 69.28  human services shall establish a consumer support grant program 
 69.29  to assist individuals with functional limitations and their 
 69.30  families in purchasing and securing supports which the 
 69.31  individuals need to live as independently and productively in 
 69.32  the community as possible.  The program shall: 
 69.33     (1) make support grants available to individuals or 
 69.34  families as an effective alternative to existing programs and 
 69.35  services, such as the developmental disability family support 
 69.36  program, the alternative care program, personal care attendant 
 70.1   services, home health aide services, and nursing facility 
 70.2   services; 
 70.3      (2) provide consumers more control, flexibility, and 
 70.4   responsibility over the needed supports; 
 70.5      (3) promote local program management and decision-making; 
 70.6   and 
 70.7      (4) encourage the use of informal and typical community 
 70.8   supports. 
 70.9      Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
 70.10  following terms have the meanings given them: 
 70.11     (a) "County board" means the county board of commissioners 
 70.12  for the county of financial responsibility as defined in section 
 70.13  256G.02, subdivision 4, or its designated representative.  When 
 70.14  a human services board has been established under sections 
 70.15  402.01 to 402.10, it shall be considered the county board for 
 70.16  the purposes of this section. 
 70.17     (b) "Family" means the person's birth parents, adoptive 
 70.18  parents or stepparents, siblings or stepsiblings, children or 
 70.19  stepchildren, grandparents, grandchildren, niece, nephew, aunt, 
 70.20  uncle, or spouse.  For the purposes of this section, a family 
 70.21  member is at least 18 years of age. 
 70.22     (c) "Functional limitations" means the long-term inability 
 70.23  to perform an activity or task in one or more areas of major 
 70.24  life activity, including self-care, understanding and use of 
 70.25  language, learning, mobility, self-direction, and capacity for 
 70.26  independent living.  For the purpose of this section, the 
 70.27  inability to perform an activity or task results from a mental, 
 70.28  emotional, psychological, sensory, or physical disability, 
 70.29  condition, or illness. 
 70.30     (d) "Informed choice" means a voluntary decision made by 
 70.31  the person or the person's legal representative, after becoming 
 70.32  familiarized with the alternatives to: 
 70.33     (1) select a preferred alternative from a number of 
 70.34  feasible alternatives; 
 70.35     (2) select an alternative which may be developed in the 
 70.36  future; and 
 71.1      (3) refuse any or all alternatives. 
 71.2      (e) "Local agency" means the local agency authorized by the 
 71.3   county board to carry out the provisions of this section. 
 71.4      (f) "Person" or "persons" means a person or persons meeting 
 71.5   the eligibility criteria in subdivision 3. 
 71.6      (g) "Responsible individual" means an individual designated 
 71.7   by the person or their legal representative to act on their 
 71.8   behalf.  This individual may be a family member, guardian, 
 71.9   representative payee, or other individual designated by the 
 71.10  person or their legal representative, if any, to assist in 
 71.11  purchasing and arranging for supports.  For the purposes of this 
 71.12  section, a responsible individual is at least 18 years of age. 
 71.13     (h) "Screening" means the screening of a person's service 
 71.14  needs under sections 256B.0911 and 256B.092. 
 71.15     (i) "Supports" means services, care, aids, home 
 71.16  modifications, or assistance purchased by the person or the 
 71.17  person's family.  Examples of supports include respite care, 
 71.18  assistance with daily living, and adaptive aids.  For the 
 71.19  purpose of this section, notwithstanding the provisions of 
 71.20  section 144A.43, supports purchased under the consumer support 
 71.21  program are not considered home care services. 
 71.22     Subd. 3.  [ELIGIBILITY TO APPLY FOR GRANTS.] (a) A person 
 71.23  is eligible to apply for a consumer support grant if the person 
 71.24  meets all of the following criteria: 
 71.25     (1) the person is eligible for medical assistance as 
 71.26  determined under sections 256B.055 and 256B.056 or the person is 
 71.27  eligible for alternative care services as determined under 
 71.28  section 256B.0913; 
 71.29     (2) the person is able to direct and purchase their own 
 71.30  care and supports, or the person has a family member, legal 
 71.31  representative, or other responsible individual who can purchase 
 71.32  and arrange supports on the person's behalf; 
 71.33     (3) the person has functional limitations, requires ongoing 
 71.34  supports to live in the community, and is at risk of or would 
 71.35  continue institutionalization without such supports; and 
 71.36     (4) the person will live in a home.  For the purpose of 
 72.1   this section, "home" means the person's own home or home of a 
 72.2   person's family member.  These homes are natural home settings 
 72.3   and are not licensed by the department of health or human 
 72.4   services. 
 72.5      (b) Persons may not concurrently receive a consumer support 
 72.6   grant if they are: 
 72.7      (1) receiving home and community-based services under 
 72.8   United States Code, title 42, section 1396h(c); personal care 
 72.9   attendant and home health aide services under section 256B.0625; 
 72.10  a developmental disability family support grant; or alternative 
 72.11  care services under section 256B.0913; or 
 72.12     (2) residing in an institutional or congregate care setting.
 72.13     (c) A person or person's family receiving a consumer 
 72.14  support grant shall not be charged a fee or premium by a local 
 72.15  agency for participating in the program.  A person or person's 
 72.16  family is not eligible for a consumer support grant if their 
 72.17  income is at a level where they are required to pay a parental 
 72.18  fee under sections 252.27, 256B.055, subdivision 12, and 256B.14 
 72.19  and rules adopted under those sections for medical assistance 
 72.20  services to a disabled child living with at least one parent. 
 72.21     Subd. 4.  [SUPPORT GRANTS; CRITERIA AND LIMITATIONS.] (a) 
 72.22  The local agency shall establish written procedures and criteria 
 72.23  to determine the amount and use of support grants.  These 
 72.24  procedures must include, at least, the availability of respite 
 72.25  care, assistance with daily living, and adaptive aids.  The 
 72.26  local agency may establish monthly or annual maximum amounts for 
 72.27  grants and procedures where exceptional resources may be 
 72.28  required to meet the health and safety needs of the person on a 
 72.29  time-limited basis. 
 72.30     (b) Support grants to a person or a person's family may be 
 72.31  provided through a monthly subsidy or lump sum payment basis and 
 72.32  be in the form of cash, voucher, or direct county payment to 
 72.33  vendor.  Support grant amounts must be determined by the local 
 72.34  agency.  Each service and item purchased with a support grant 
 72.35  must meet all of the following criteria:  
 72.36     (1) it must be over and above the normal cost of caring for 
 73.1   the person if the person did not have functional limitations; 
 73.2      (2) it must be directly attributable to the person's 
 73.3   functional limitations; 
 73.4      (3) it must enable a person or the person's family to delay 
 73.5   or prevent out-of-home placement of the person; and 
 73.6      (4) it must be consistent with the needs identified in the 
 73.7   service plan, when applicable. 
 73.8      (c) Items and services purchased with support grants must 
 73.9   be those for which there are no other public or private funds 
 73.10  available to the person or the person's family.  Fees assessed 
 73.11  to the person or the person's family for health and human 
 73.12  services are not reimbursable through the grant. 
 73.13     (d) In approving or denying applications, the local agency 
 73.14  shall consider the following factors:  
 73.15     (1) the extent and areas of the person's functional 
 73.16  limitations; 
 73.17     (2) the degree of need in the home environment for 
 73.18  additional support; and 
 73.19     (3) the potential effectiveness of the grant to maintain 
 73.20  and support the person in the family environment or the person's 
 73.21  own home. 
 73.22     (e) At the time of application to the program or screening 
 73.23  for other services, the person or the person's family shall be 
 73.24  provided sufficient information to ensure an informed choice of 
 73.25  alternatives by the person, the person's legal representative, 
 73.26  if any, or the person's family.  The application shall be made 
 73.27  to the local agency and shall specify the needs of the person 
 73.28  and family, the form and amount of grant requested, the items 
 73.29  and services to be reimbursed, and evidence of eligibility for 
 73.30  medical assistance or alternative care program. 
 73.31     (f) Upon approval of an application by the local agency and 
 73.32  agreement on a support plan for the person or person's family, 
 73.33  the local agency shall make grants to the person or the person's 
 73.34  family.  The grant shall be in an amount for the direct costs of 
 73.35  the services or supports outlined in the service agreement.  
 73.36     (g) Reimbursable costs shall not include costs for 
 74.1   resources already available, such as special education classes, 
 74.2   day training and habilitation, case management, other services 
 74.3   to which the person is entitled, medical costs covered by 
 74.4   insurance or other health programs, or other resources usually 
 74.5   available at no cost to the person or the person's family. 
 74.6      Subd. 5.  [REIMBURSEMENT, ALLOCATIONS, AND REPORTING.] (a) 
 74.7   For the purpose of transferring persons to the consumer support 
 74.8   grant program from specific programs or services, such as the 
 74.9   developmental disability family support program and alternative 
 74.10  care program, personal care attendant, home health aide, or 
 74.11  nursing facility services, the amount of funds transferred by 
 74.12  the commissioner between the developmental disability family 
 74.13  support program account, the alternative care account, the 
 74.14  medical assistance account, or the consumer support grant 
 74.15  account shall be based on each county's participation in 
 74.16  transferring persons to the consumer support grant program from 
 74.17  those programs and services. 
 74.18     (b) At the beginning of each fiscal year, county 
 74.19  allocations for consumer support grants shall be based on: 
 74.20     (1) the number of persons to whom the county board expects 
 74.21  to provide consumer supports grants; 
 74.22     (2) their eligibility for current program and services; 
 74.23     (3) the amount of nonfederal dollars expended on those 
 74.24  individuals for those programs and services; and 
 74.25     (4) projected dates when persons will start receiving 
 74.26  grants.  County allocations shall be adjusted periodically by 
 74.27  the commissioner based on the actual transfer of persons or 
 74.28  service openings, and the nonfederal dollars associated with 
 74.29  those persons or service openings, to the consumer support grant 
 74.30  program. 
 74.31     (c) The commissioner shall use up to five percent of each 
 74.32  county's allocation, as adjusted, for payments to that county 
 74.33  for administrative expenses, to be paid as a proportionate 
 74.34  addition to reported direct service expenditures. 
 74.35     (d) The commissioner may recover, suspend, or withhold 
 74.36  payments if the county board, local agency, or grantee does not 
 75.1   comply with the requirements of this section. 
 75.2      Subd. 6.  [RIGHT TO APPEAL.] Notice, appeal, and hearing 
 75.3   procedures shall be conducted in accordance with section 
 75.4   256.045.  The denial, suspension, or termination of services 
 75.5   under this program may be appealed by a recipient or applicant 
 75.6   under section 256.045, subdivision 3.  It is an absolute defense 
 75.7   to an appeal under this section, if the county board proves that 
 75.8   it followed the established written procedures and criteria and 
 75.9   determined that the grant could not be provided within the 
 75.10  county board's allocation of money for consumer support grants. 
 75.11     Subd. 7.  [FEDERAL FUNDS.] The commissioner and the 
 75.12  counties shall make reasonable efforts to maximize the use of 
 75.13  federal funds including funds available through grants and 
 75.14  federal waivers.  If federal funds are made available to the 
 75.15  consumer support grant program, the money shall be allocated to 
 75.16  the responsible county agency's consumer support grant fund. 
 75.17     Subd. 8.  [COMMISSIONER RESPONSIBILITIES.] The commissioner 
 75.18  shall: 
 75.19     (1) transfer and allocate funds pursuant to this section; 
 75.20     (2) determine allocations based on projected and actual 
 75.21  local agency use; 
 75.22     (3) monitor and oversee overall program spending; 
 75.23     (4) evaluate the effectiveness of the program; 
 75.24     (5) provide training and technical assistance for local 
 75.25  agencies and consumers to help identify potential applicants to 
 75.26  the program; and 
 75.27     (6) develop guidelines for local agency program 
 75.28  administration and consumer information. 
 75.29     Subd. 9.  [COUNTY BOARD RESPONSIBILITIES.] County boards 
 75.30  receiving funds under this section shall: 
 75.31     (1) determine the needs of persons and families for 
 75.32  services and supports; 
 75.33     (2) determine the eligibility for persons proposed for 
 75.34  program participation; 
 75.35     (3) approve items and services to be reimbursed and inform 
 75.36  families of their determination; 
 76.1      (4) issue support grants directly to or on behalf of 
 76.2   persons; 
 76.3      (5) submit quarterly financial reports and an annual 
 76.4   program report to the commissioner; 
 76.5      (6) coordinate services and supports with other programs 
 76.6   offered or made available to persons or their families; and 
 76.7      (7) provide assistance to persons or their families in 
 76.8   securing or maintaining supports, as needed. 
 76.9      Subd. 10.  [CONSUMER RESPONSIBILITIES.] Persons receiving 
 76.10  grants under this section shall: 
 76.11     (1) spend the grant money in a manner consistent with their 
 76.12  agreement with the local agency; 
 76.13     (2) notify the local agency of any necessary changes in the 
 76.14  grant or the items on which it is spent; 
 76.15     (3) notify the local agency of any decision made by the 
 76.16  person, the person's legal representative, or the person's 
 76.17  family that would change their eligibility for consumer support 
 76.18  grants; 
 76.19     (4) arrange and pay for supports; and 
 76.20     (5) inform the local agency of areas where they have 
 76.21  experienced difficulty securing or maintaining supports. 
 76.22     Sec. 17.  [256.973] [HOUSING FOR PERSONS WHO ARE ELDERLY, 
 76.23  PERSONS WITH PHYSICAL OR DEVELOPMENTAL DISABILITIES, AND 
 76.24  SINGLE-PARENT FAMILIES.] 
 76.25     Subdivision 1.  [HOME SHARING.] The home-sharing grant 
 76.26  program authorized by section 462A.05, subdivision 24, is 
 76.27  transferred from the Minnesota housing finance agency to the 
 76.28  department of human services.  The housing finance agency shall 
 76.29  administer the current grants that terminate on August 30, 
 76.30  1995.  The department of human services shall administer grants 
 76.31  funded after August 30, 1995.  The department of human services 
 76.32  may engage in housing programs, as defined by the agency, to 
 76.33  provide grants to housing sponsors who will provide a 
 76.34  home-sharing program for low- and moderate-income elderly, 
 76.35  persons with physical or developmental disabilities, or 
 76.36  single-parent families in urban and rural areas. 
 77.1      Subd. 2.  [MATCHING OWNERS AND TENANTS.] Housing sponsors 
 77.2   of home sharing programs, as defined by the agency, shall match 
 77.3   existing homeowners with prospective tenants who will contribute 
 77.4   either rent or services to the homeowner, where either the 
 77.5   homeowner or the prospective tenant is elderly, a person with 
 77.6   physical or developmental disabilities, or the head of a 
 77.7   single-parent family.  Home-sharing projects will coordinate 
 77.8   efforts with appropriate public and private agencies and 
 77.9   organizations in their area. 
 77.10     Subd. 3.  [INFORMATION FOR PARTICIPANTS.] Housing sponsors 
 77.11  who receive funding through these programs shall provide 
 77.12  homeowners and tenants participating in a home-sharing program 
 77.13  with information regarding their rights and obligations as they 
 77.14  relate to federal and state tax law including, but not limited 
 77.15  to, taxable rental income, homestead credit under chapter 273, 
 77.16  and the property tax refund act under chapter 290A. 
 77.17     Subd. 4.  [TECHNICAL ASSISTANCE.] The department of human 
 77.18  services may provide technical assistance to sponsors of 
 77.19  home-sharing programs or may contract or delegate the provision 
 77.20  of technical assistance. 
 77.21     Subd. 5.  [USING OUTSIDE AGENCIES.] The department of human 
 77.22  services may delegate, use, or employ any federal, state, 
 77.23  regional, or local public or private agency or organization, 
 77.24  including organizations of physically handicapped persons, upon 
 77.25  terms it deems necessary or desirable, to assist in the exercise 
 77.26  of any of the powers granted in this section. 
 77.27     Sec. 18.  Minnesota Statutes 1994, section 256B.0628, is 
 77.28  amended by adding a subdivision to read: 
 77.29     Subd. 3.  [ASSESSMENT AND PRIOR AUTHORIZATION PROCESS FOR 
 77.30  RECIPIENTS OF BOTH HOME CARE AND HOME AND COMMUNITY-BASED 
 77.31  WAIVERED SERVICES FOR PERSONS WITH MENTAL RETARDATION OR RELATED 
 77.32  CONDITIONS.] Effective January 1, 1996, for purposes of 
 77.33  providing informed choice, coordinating of local planning 
 77.34  decisions, and streamlining administrative requirements, the 
 77.35  assessment and prior authorization process for persons receiving 
 77.36  both home care and home and community-based waivered services 
 78.1   for persons with mental retardation or related conditions shall 
 78.2   meet the requirements of this section and section 256B.0627 with 
 78.3   the following exceptions: 
 78.4      (a) Upon request for home care services and subsequent 
 78.5   assessment by the public health nurse under section 256B.0627, 
 78.6   the public health nurse shall participate in the screening 
 78.7   process, as appropriate, and, if home care services are 
 78.8   determined to be necessary, participate in the development of a 
 78.9   service plan coordinating the need for home care and home and 
 78.10  community-based waivered services with the assigned county case 
 78.11  manager, the recipient of services, and the recipient's legal 
 78.12  representative, if any. 
 78.13     (b) The public health nurse shall give prior authorization 
 78.14  for home care services to the extent that home care services are:
 78.15     (1) medically necessary; 
 78.16     (2) chosen by the recipient and their legal representative, 
 78.17  if any, from the array of home care and home and community-based 
 78.18  waivered services available; 
 78.19     (3) coordinated with other services to be received by the 
 78.20  recipient as described in the service plan; and 
 78.21     (4) provided within the county's reimbursement limits for 
 78.22  home care and home and community-based waivered services for 
 78.23  persons with mental retardation or related conditions. 
 78.24     (c) If the public health agency is or may be the provider 
 78.25  of home care services to the recipient, the public health agency 
 78.26  shall provide the commissioner of human services with a written 
 78.27  plan that specifies how the assessment and prior authorization 
 78.28  process will be held separate and distinct from the provision of 
 78.29  services. 
 78.30     Sec. 19.  Minnesota Statutes 1994, section 256B.092, is 
 78.31  amended by adding a subdivision to read: 
 78.32     Subd. 4c.  [LIVING ARRANGEMENTS BASED ON A 24-HOUR PLAN OF 
 78.33  CARE.] (a) Notwithstanding the requirements for licensure under 
 78.34  Minnesota Rules, part 9525.1860, subpart 6, item D, and upon 
 78.35  federal approval of an amendment to the home and community-based 
 78.36  services waiver for persons with mental retardation or related 
 79.1   conditions, a person receiving home and community-based services 
 79.2   may choose to live in their own home without requiring that the 
 79.3   living arrangement be licensed under Minnesota Rules, parts 
 79.4   9555.5050 to 9555.6265, provided the following conditions are 
 79.5   met: 
 79.6      (1) the person receiving home and community-based services 
 79.7   has chosen to live in their own home; 
 79.8      (2) home and community-based services are provided by a 
 79.9   qualified vendor who meets the provider standards as approved in 
 79.10  the Minnesota home and community-based services waiver plan for 
 79.11  persons with mental retardation or related conditions; 
 79.12     (3) the person, or their legal representative, individually 
 79.13  or with others has purchased or rents the home and the person's 
 79.14  service provider has no financial interest in the home; and 
 79.15     (4) the service planning team, as defined in Minnesota 
 79.16  Rules, part 9525.0004, subpart 24, has determined that the 
 79.17  planned services, the 24-hour plan of care, and the housing 
 79.18  arrangement are appropriate to address the health, safety, and 
 79.19  welfare of the person. 
 79.20     (b) The county agency may require safety inspections of the 
 79.21  selected housing as part of their determination of the adequacy 
 79.22  of the living arrangement. 
 79.23     Sec. 20.  [TRANSFER OF FUNDS.] 
 79.24     During the biennium ending June 30, 1997, state funds, 
 79.25  which had been used during the 1994-1995 biennium to supplement 
 79.26  payments to state operated home and community-based waiver 
 79.27  services, shall be transferred to the medical assistance account 
 79.28  in order to implement the requirements of section 3.  Sufficient 
 79.29  money shall be retained in the applicable accounts to fund 
 79.30  cost-of-living adjustments in the state-operated community 
 79.31  waivered services programs. 
 79.32     Sec. 21.  [CRISIS INTERVENTION PROJECTS.] 
 79.33     (a) The commissioner of human services may authorize up to 
 79.34  five projects to provide crisis intervention through 
 79.35  community-based services in the private or public sector to 
 79.36  persons with developmental disabilities.  The projects must be 
 80.1   geographically distributed in rural and urban areas.  The 
 80.2   parameters of these projects may be consistent with the special 
 80.3   needs crisis services outlined under Minnesota Statutes, section 
 80.4   256B.501, subdivision 8a. 
 80.5      (b) The commissioner shall request proposals from 
 80.6   individual counties or groups of counties and establish criteria 
 80.7   for approval of proposals.  Criteria shall include: 
 80.8      (1) avoidance of duplication of service by agreements with 
 80.9   hospitals and other public or private vendors as appropriate; 
 80.10     (2) reduction of inpatient psychiatric hospital expenses 
 80.11  using a cost-effective alternative service; 
 80.12     (3) maintenance of clients in their current homes; 
 80.13     (4) promotion of service to clients under a capitation 
 80.14  agreement with providers; 
 80.15     (5) coordination with other target populations and other 
 80.16  counties; 
 80.17     (6) provision of a full complement of on-site and off-site 
 80.18  behavioral support and crisis response services including: 
 80.19  training and technical assistance to prevent out of home 
 80.20  placements; crisis response, including in-home and short-term 
 80.21  placements; and assessment of service outcomes; 
 80.22     (7) evaluation of service program efficacy and cost 
 80.23  effectiveness. 
 80.24     (c) The commissioner shall review proposals in accordance 
 80.25  with Minnesota Statutes, section 252.28, and shall report to the 
 80.26  legislature on the cost effectiveness of the projects by January 
 80.27  15, 1997. 
 80.28     Sec. 22.  [AUTHORIZATION FOR DOWNSIZING.] 
 80.29     Subdivision 1.  [DUTIES OF THE COMMISSIONER.] (a) The 
 80.30  commissioner of human services in consultation with Brown county 
 80.31  and advocates of persons with mental retardation, shall carry 
 80.32  out a voluntary downsizing of MBW on Center, an intermediate 
 80.33  care facility for persons with mental retardation, to assure 
 80.34  that appropriate services are provided in the least restrictive 
 80.35  setting as provided under Minnesota Statutes, section 252.291, 
 80.36  subdivision 3. 
 81.1      (b) The commissioner shall present a proposal to address 
 81.2   issues relating to: 
 81.3      (1) redistribution of costs; 
 81.4      (2) specific plans for the development and provision of 
 81.5   alternative services for residents moved from the intermediate 
 81.6   care facility for persons with mental retardation or related 
 81.7   conditions; 
 81.8      (3) timelines and expected beginning dates for resident 
 81.9   relocation and facility downsizing; and 
 81.10     (4) projected expenditures for services provided to persons 
 81.11  with mental retardation or related conditions. 
 81.12     (c) The commissioner shall ensure that residents discharged 
 81.13  from the facility are appropriately placed according to need in 
 81.14  compliance with Minnesota Rules, parts 9525.0025 to 9525.0165. 
 81.15     (d) The commissioner shall ensure that the proposal 
 81.16  complies with need determination procedures in Minnesota 
 81.17  Statutes, sections 252.28 and 252.291; case management 
 81.18  responsibilities in Minnesota Statutes, section 256B.092; rate 
 81.19  requirements in Minnesota Statutes, section 256B.501; the 
 81.20  requirements under United States Code, title 42, section 1396, 
 81.21  and the rules and regulations adopted under these laws. 
 81.22     (e) The resulting downsizing must result in living units of 
 81.23  no larger than four persons, having single bedrooms and a common 
 81.24  living room, dining room/kitchen, and bathroom. 
 81.25     (f) The commissioner shall contract with Brown county where 
 81.26  the facility is located and the facility.  The contract will 
 81.27  address and be consistent with the requirements of the proposal. 
 81.28     (g) Operating costs of the facility after downsizing may 
 81.29  not exceed the total allowable operating costs of the original 
 81.30  facility.  For purposes of rate setting for the facility after 
 81.31  downsizing, fixed costs may be redistributed but must be based 
 81.32  on the actual costs reflected in existing rates. 
 81.33     Subd. 2.  [IMPLEMENTATION OF THE PROPOSAL.] For the 
 81.34  purposes of the proposal, the commissioner shall: 
 81.35     (1) fund the downsizing of the ICF/MR; and 
 81.36     (2) notify Brown county and the facility of the selections 
 82.1   made and approved by the commissioner.  The decision of the 
 82.2   commissioner is final and may not be appealed. 
 82.3      Sec. 23.  [FACILITY CERTIFICATION.] 
 82.4      Notwithstanding Minnesota Statutes, section 252.291, 
 82.5   subdivision 1, the commissioner of health shall inspect to 
 82.6   certify a large community-based facility currently licensed 
 82.7   under Minnesota Rules, parts 9525.0215 to 9525.0355, for more 
 82.8   than 16 beds and located in Northfield.  The facility may be 
 82.9   certified for up to 44 beds.  The commissioner of health must 
 82.10  inspect to certify the facility as soon as possible after the 
 82.11  effective date of this section.  The commissioner of human 
 82.12  services shall work with the facility and affected counties to 
 82.13  relocate any current residents of the facility who do not meet 
 82.14  the admission criteria for an ICF/MR.  To fund the ICF/MR 
 82.15  services and relocations of current residents authorized, the 
 82.16  commissioner of human services may transfer on a quarterly basis 
 82.17  to the medical assistance account from each affected county's 
 82.18  community social service allocation, an amount equal to the 
 82.19  state share of medical assistance reimbursement for the 
 82.20  residential and day habilitation services funded by medical 
 82.21  assistance and provided to clients for whom the county is 
 82.22  financially responsible.  For nonresidents of Minnesota seeking 
 82.23  admission to the facility, Rice county shall be notified in 
 82.24  order to assure that appropriate funding is guaranteed from 
 82.25  their state or country of residence. 
 82.26     Sec. 24.  [REPEALER.] 
 82.27     Minnesota Statutes 1994, section 252.275, subdivisions 4a 
 82.28  and 10, are repealed. 
 82.29     Sec. 25.  [EFFECTIVE DATE.] 
 82.30     Section 12 (252.60) is effective January 1, 1996.  Section 
 82.31  16 (256.476) is effective July 1, 1996. 
 82.32                             ARTICLE 4 
 82.33                        CHILDREN'S PROGRAMS 
 82.34     Section 1.  Minnesota Statutes 1994, section 245A.14, 
 82.35  subdivision 7, is amended to read: 
 82.36     Subd. 7.  [CULTURAL DYNAMICS TRAINING FOR CHILD CARE 
 83.1   PROVIDERS.] (a) The ongoing training required of licensed child 
 83.2   care centers center staff and group family and group family 
 83.3   child care providers and staff shall include training in the 
 83.4   cultural dynamics of early childhood development and child care 
 83.5   as an option. 
 83.6      (b) The cultural dynamics training must include, but not be 
 83.7   limited to, the following:  awareness of the value and dignity 
 83.8   of different cultures and how different cultures complement each 
 83.9   other; awareness of the emotional, physical, and mental needs of 
 83.10  children and families of different cultures; knowledge of 
 83.11  current and traditional roles of women and men in different 
 83.12  cultures, communities, and family environments; and awareness of 
 83.13  the diversity of child rearing practices and parenting 
 83.14  traditions. shall be designed to achieve outcomes for providers 
 83.15  of child care that include, but are not limited to: 
 83.16     (1) an understanding of the importance of culture in 
 83.17  children's identity development; 
 83.18     (2) understanding the importance of awareness of cultural 
 83.19  differences and similarities in working with children and their 
 83.20  families; 
 83.21     (3) developing skills to help children develop unbiased 
 83.22  attitudes about cultural differences; and 
 83.23     (4) developing skills in culturally appropriate 
 83.24  caregiving.  Curriculum for cultural dynamics training shall be 
 83.25  approved by the commissioner. 
 83.26     (c) The commissioner shall amend current rules relating to 
 83.27  the initial training of the licensed child care center staff and 
 83.28  licensed providers included in paragraph (a) of family and group 
 83.29  family child care and staff to require cultural dynamics 
 83.30  training upon determining that sufficient curriculum is 
 83.31  developed statewide.  Timelines established in the rule 
 83.32  amendments for complying with the cultural dynamics training 
 83.33  requirements shall be based on the commissioner's determination 
 83.34  that curriculum materials and trainers are available statewide. 
 83.35     Sec. 2.  Minnesota Statutes 1994, section 256.8711, is 
 83.36  amended to read: 
 84.1      256.8711 [EMERGENCY ASSISTANCE; INTENSIVE FAMILY 
 84.2   PRESERVATION SERVICES.] 
 84.3      Subdivision 1.  [SCOPE OF SERVICES.] (a) For a family 
 84.4   experiencing an emergency as defined in subdivision 2, and for 
 84.5   whom the county authorizes services under subdivision 3, 
 84.6   intensive family preservation services authorized under this 
 84.7   section include both intensive family preservation services and 
 84.8   emergency assistance placement services. 
 84.9      (b) For purposes of this section, intensive family 
 84.10  preservation services are: 
 84.11     (1) crisis family-based services; 
 84.12     (2) counseling family-based services; and 
 84.13     (3) mental health family-based services. 
 84.14     Intensive family preservation services also include 
 84.15  family-based life management skills when it is provided in 
 84.16  conjunction with any of the three family-based services or five 
 84.17  emergency assistance placement services in this subdivision.  
 84.18  The intensive family preservation services in clauses (1), (2), 
 84.19  and (3) and life management skills have the meanings given in 
 84.20  section 256F.03, subdivision 5, paragraphs (a), (b), (c), and 
 84.21  (e). 
 84.22     (c) For purposes of this section, emergency assistance 
 84.23  placement services include: 
 84.24     (1) emergency shelter services; 
 84.25     (2) foster care services; 
 84.26     (3) group home services; 
 84.27     (4) child residential treatment services; and 
 84.28     (5) correctional facility services. 
 84.29     Subd. 2.  [DEFINITION OF EMERGENCY.] For the purposes of 
 84.30  this section, an emergency is a situation in which the dependent 
 84.31  children are at risk for out-of-home placement due to abuse, 
 84.32  neglect, or delinquency; or when the children are returning home 
 84.33  from placements but need services to prevent another 
 84.34  placement; or when the parents are unable to provide care; or 
 84.35  when the dependent children have been removed from the home by a 
 84.36  peace officer, by order of the juvenile court, or pursuant to a 
 85.1   voluntary placement agreement, to a publicly funded out-of-home 
 85.2   placement. 
 85.3      Subd. 3.  [COUNTY AUTHORIZATION.] The county agency shall 
 85.4   assess current and prospective client families with a dependent 
 85.5   under 21 years of age to determine if there is an emergency, as 
 85.6   defined in subdivision 2, and to determine if there is a need 
 85.7   for intensive family preservation services.  Upon such 
 85.8   determinations, during the period October 1, 1993 to September 
 85.9   30, 1995, counties shall authorize intensive family preservation 
 85.10  services for up to 90 days 12 months for eligible families under 
 85.11  this section and under section 256.871, subdivisions 1 and 
 85.12  3.  Effective October 1, 1995, Once authorized, intensive family 
 85.13  services shall be used singly or in any combination or duration 
 85.14  up to 12 months appropriate to the needs of the child, as 
 85.15  determined by the county agency. 
 85.16     Subd. 3a.  [LIMITATIONS ON FEDERAL FUNDING.] County 
 85.17  agencies shall determine eligibility under Title IV-E of the 
 85.18  Social Security Act for every child being considered for 
 85.19  emergency assistance placement services.  The commissioner and 
 85.20  county agencies shall make every effort to use federal funding 
 85.21  under Title IV-E of the Social Security Act instead of federal 
 85.22  funding under this section, whenever possible.  The counties' 
 85.23  obligations to continue the base level of expenditures and to 
 85.24  expand family preservation services as defined in section 
 85.25  256F.03, subdivision 5, are eliminated, with the termination of 
 85.26  if the federal revenue earned under this section is terminated.  
 85.27  If the federal revenue earned under this section is terminated 
 85.28  or inadequate, the state has no obligation to pay for these 
 85.29  services.  In the event that federal limitations or ceilings are 
 85.30  imposed on federal emergency assistance funding, the 
 85.31  commissioner shall use the funds according to these priorities: 
 85.32     (1) emergency assistance benefits under section 256.871; 
 85.33     (2) emergency assistance benefits under the reserve 
 85.34  established in subdivision 5; 
 85.35     (3) intensive family preservation services under this 
 85.36  section; and 
 86.1      (4) emergency assistance placement services under this 
 86.2   section. 
 86.3      Subd. 4.  [COST TO FAMILIES.] Family preservation services 
 86.4   provided under this section or sections 256F.01 to 256F.07 shall 
 86.5   be provided at no cost to the client and without regard to the 
 86.6   client's available income or assets.  Emergency assistance 
 86.7   placement services provided under this section shall not be 
 86.8   dependent on the client's available income or assets.  However, 
 86.9   county agencies shall seek costs of care as required under 
 86.10  section 260.251 for emergency assistance placement services. 
 86.11     Subd. 5.  [EMERGENCY ASSISTANCE RESERVE.] The commissioner 
 86.12  shall establish an emergency assistance reserve for families who 
 86.13  receive intensive family preservation services under this 
 86.14  section.  A family is eligible to receive assistance once from 
 86.15  the emergency assistance reserve if it received intensive family 
 86.16  preservation services under this section within the past 12 
 86.17  months, but has not received emergency assistance under section 
 86.18  256.871 during that period.  The emergency assistance reserve 
 86.19  shall cover the cost of the federal share of the assistance that 
 86.20  would have been available under section 256.871, except for the 
 86.21  provision of intensive family preservation services provided 
 86.22  under this section.  The emergency assistance reserve shall be 
 86.23  authorized and paid in the same manner as emergency assistance 
 86.24  is provided under section 256.871.  Funds set aside for the 
 86.25  emergency assistance reserve that are not needed as determined 
 86.26  by the commissioner shall be distributed by the terms of 
 86.27  subdivision 6, paragraph (a); or 6b, paragraph (a), depending on 
 86.28  how the funds were earned. 
 86.29     Subd. 6.  [DISTRIBUTION OF NEW FEDERAL REVENUE EARNED FOR 
 86.30  INTENSIVE FAMILY PRESERVATION SERVICES.] (a) All federal funds 
 86.31  not set aside under paragraph (b), and at least 50 percent of 
 86.32  all federal funds earned for intensive family preservation 
 86.33  services under this section and earned through assessment 
 86.34  activity under subdivision 3, shall be paid to each county based 
 86.35  on its earnings and assessment activity, respectively, and shall 
 86.36  be used by each county to expand family preservation core 
 87.1   services as defined in section 256F.03, subdivision 5 10, and 
 87.2   may be used to expand crisis nursery services.  If a county 
 87.3   joins a local children's mental health collaborative as 
 87.4   authorized by the 1993 legislature, then the federal 
 87.5   reimbursement received under this paragraph by the county for 
 87.6   providing intensive family preservation services to children 
 87.7   served by the local collaborative shall be transferred by the 
 87.8   county to the integrated fund.  The federal reimbursement 
 87.9   transferred to the integrated fund by the county must be used 
 87.10  for intensive family preservation services as defined in section 
 87.11  256F.03, subdivision 5, to the target population.  
 87.12     (b) The commissioner shall set aside a portion, not to 
 87.13  exceed 50 percent, of the federal funds earned for intensive 
 87.14  family preservation services under this section and earned 
 87.15  through assessment activity described under subdivision 3.  The 
 87.16  set aside funds shall be used to develop and expand intensive 
 87.17  family preservation services statewide as provided in 
 87.18  subdivisions 6a and 7 and establish an emergency assistance 
 87.19  reserve as provided in subdivision 5.  
 87.20     Subd. 6a.  [DEVELOPMENT GRANTS.] Except for the portion 
 87.21  needed for the emergency assistance reserve provided in 
 87.22  subdivision 5, the commissioner may shall distribute the funds 
 87.23  set aside under subdivision 6, paragraph (b), 
 87.24  through development grants to a county or counties to establish 
 87.25  and maintain approved intensive family preservation core 
 87.26  services as defined in section 256F.03, subdivision 10, 
 87.27  statewide.  Funds available for crisis family-based services 
 87.28  through section 256F.05, subdivision 8, shall be considered in 
 87.29  establishing intensive family preservation services statewide.  
 87.30  The commissioner may phase in intensive family preservation 
 87.31  services in a county or group of counties as new federal funds 
 87.32  become available.  The commissioner's priority is to establish a 
 87.33  minimum level of intensive family preservation core services 
 87.34  statewide.  Each county's development grant shall be paid and 
 87.35  used as provided in sections 256F.01 to 256F.06. 
 87.36     Subd. 6b.  [DISTRIBUTION OF NEW FEDERAL REVENUE EARNED FOR 
 88.1   EMERGENCY ASSISTANCE PLACEMENT SERVICES.] (a) All federal funds 
 88.2   earned for emergency assistance placement services not set aside 
 88.3   under paragraph (b), shall be paid to each county based on its 
 88.4   earnings.  These payments shall constitute the placement 
 88.5   earnings grant of the family preservation fund under sections 
 88.6   256F.01 to 256F.06. 
 88.7      (b) The commissioner may set aside a portion, not to exceed 
 88.8   15 percent, of the federal funds earned for emergency assistance 
 88.9   placement services under this section.  The set aside funds 
 88.10  shall be used for the emergency assistance reserve as provided 
 88.11  in subdivision 5. 
 88.12     Subd. 7.  [EXPANSION OF SERVICES AND BASE LEVEL OF 
 88.13  EXPENDITURES.] (a) Counties must continue the base level of 
 88.14  expenditures for family preservation core services as defined in 
 88.15  section 256F.03, subdivision 5 10, from any state, county, or 
 88.16  federal funding source, which, in the absence of federal funds 
 88.17  earned for intensive family preservation services under this 
 88.18  section and earned through assessment activity described under 
 88.19  subdivision 3, would have been available for these services.  
 88.20  The commissioner shall review the county expenditures annually, 
 88.21  using reports required under sections 245.482, 256.01, 
 88.22  subdivision 2, paragraph (17), and 256E.08, subdivision 8, to 
 88.23  ensure that the base level of expenditures for family 
 88.24  preservation core services as defined in section 256F.03, 
 88.25  subdivision 5 10, is continued from sources other than the 
 88.26  federal funds earned under this section and earned through 
 88.27  assessment activity described under subdivision 3. 
 88.28     (b) The commissioner may shall, at the request of a county, 
 88.29  reduce, suspend, or eliminate either or both of a county's 
 88.30  obligations to continue the base level of expenditures and to 
 88.31  expand family preservation core services as defined in section 
 88.32  256F.03, subdivision 5 10, if the commissioner determines that 
 88.33  one or more of the following conditions apply to that county: 
 88.34     (1) imposition of levy limits or other levy restrictions 
 88.35  that significantly reduce available social service funds; 
 88.36     (2) reduction in the net tax capacity of the taxable 
 89.1   property within a county that significantly reduces available 
 89.2   social service funds; 
 89.3      (3) reduction in the number of children under age 19 in the 
 89.4   county by 25 percent when compared with the number in the base 
 89.5   year using the most recent data provided by the state 
 89.6   demographer's office; or 
 89.7      (4) termination or reduction of the federal revenue earned 
 89.8   under this section; or 
 89.9      (5) other changes in state law that significantly impact 
 89.10  the receipt or distribution of state and federal funding. 
 89.11     (c) The commissioner may suspend for one year either or 
 89.12  both of a county's obligations to continue the base level of 
 89.13  expenditures and to expand family preservation core services as 
 89.14  defined in section 256F.03, subdivision 5 10, if the 
 89.15  commissioner determines that in the previous year one or more of 
 89.16  the following conditions applied to that county: 
 89.17     (1) the unduplicated number of families who received family 
 89.18  preservation services under section 256F.03, subdivision 5, 
 89.19  paragraphs (a), (b), (c), and (e), equals or exceeds the 
 89.20  unduplicated number of children who entered placement under 
 89.21  sections 257.071 and 393.07, subdivisions 1 and 2, during the 
 89.22  year; 
 89.23     (2) the total number of children in placement under 
 89.24  sections 257.071 and 393.07, subdivisions 1 and 2, has been 
 89.25  reduced by 50 percent from the total number in the base year; or 
 89.26     (3) the average number of children in placement under 
 89.27  sections 257.071 and 393.07, subdivisions 1 and 2, on the last 
 89.28  day of each month is equal to or less than one child per 1,000 
 89.29  children in the county. 
 89.30     (d) For the purposes of this section, the base year is 
 89.31  calendar year 1992.  For the purposes of this section, the base 
 89.32  level of expenditures is the level of county expenditures in the 
 89.33  base year for eligible family preservation services under 
 89.34  section 256F.03, subdivision 5, paragraphs (a), (b), (c), and 
 89.35  (e). 
 89.36     Subd. 8.  [COUNTY RESPONSIBILITIES.] (a) Notwithstanding 
 90.1   section 256.871, subdivision 6, for intensive 
 90.2   family preservation services provided under this section, the 
 90.3   county agency shall submit quarterly fiscal reports as required 
 90.4   under section 256.01, subdivision 2, clause (17), and provide 
 90.5   the nonfederal share. 
 90.6      (b) County expenditures eligible for federal reimbursement 
 90.7   under this section must not be made from federal funds or funds 
 90.8   used to match other federal funds. 
 90.9      (c) The commissioner may suspend, reduce, or terminate the 
 90.10  federal reimbursement to a county that does not meet the 
 90.11  reporting or other requirements of this section. 
 90.12     Subd. 9.  [PAYMENTS.] Notwithstanding section 256.025, 
 90.13  subdivision 2, payments to counties for social service 
 90.14  expenditures for intensive family preservation services under 
 90.15  this section shall be made only from the federal earnings under 
 90.16  this section and earned through assessment activity described 
 90.17  under subdivision 3.  Counties may use up to ten percent of 
 90.18  federal earnings received under subdivision 6, paragraph (a), to 
 90.19  cover costs of income maintenance activities related to the 
 90.20  operation of this section and sections 256B.094 and 256F.10. 
 90.21     Subd. 10.  [COMMISSIONER RESPONSIBILITIES.] The 
 90.22  commissioner in consultation with counties shall analyze state 
 90.23  funding options to cover costs of counties' base level 
 90.24  expenditures and any expansion of the nonfederal share of 
 90.25  intensive family preservation services resulting from 
 90.26  implementation of this section.  The commissioner shall also 
 90.27  study problems of implementation, barriers to maximizing federal 
 90.28  revenue, and the impact on out-of-home placements of 
 90.29  implementation of this section.  The commissioner shall report 
 90.30  to the legislature on the results of this analysis and study, 
 90.31  together with recommendations, by February 15, 1995.  
 90.32     Sec. 3.  Minnesota Statutes 1994, section 256D.02, 
 90.33  subdivision 5, is amended to read: 
 90.34     Subd. 5.  "Family" means the applicant or recipient and the 
 90.35  following persons who reside with the applicant or recipient:  
 90.36     (1) the applicant's spouse; 
 91.1      (2) any minor child of whom the applicant is a parent, 
 91.2   stepparent, or legal custodian, and that child's minor siblings, 
 91.3   including half-siblings and stepsiblings; 
 91.4      (3) the other parent of the applicant's minor child or 
 91.5   children together with that parent's minor children, and, if 
 91.6   that parent is a minor, his or her parents, stepparents, legal 
 91.7   guardians, and minor siblings; and 
 91.8      (4) if the applicant or recipient is a minor, the minor's 
 91.9   parents, stepparents, or legal guardians, and any other minor 
 91.10  children for whom those parents, stepparents, or legal guardians 
 91.11  are financially responsible.  
 91.12     For the period July 1, 1993 to June 30, 1995, A minor child 
 91.13  who is temporarily absent from the applicant's or recipient's 
 91.14  home due to placement in foster care paid for from state or 
 91.15  local funds, but who is expected to return within six months of 
 91.16  the month of departure, is considered to be residing with the 
 91.17  applicant or recipient. 
 91.18     A "family" must contain at least one minor child and at 
 91.19  least one of that child's natural or adoptive parents, 
 91.20  stepparents, or legal custodians. 
 91.21     Sec. 4.  Minnesota Statutes 1994, section 256E.115, is 
 91.22  amended to read: 
 91.23     256E.115 [SAFE HOUSES AND TRANSITIONAL HOUSING FOR HOMELESS 
 91.24  YOUTH.] 
 91.25     Subdivision 1.  [COMMISSIONER DUTIES.] The commissioner 
 91.26  shall have authority to make grants for pilot programs when the 
 91.27  legislature authorizes money to encourage innovation in the 
 91.28  development of safe house programs to respond to the needs of 
 91.29  homeless youth issue a request for proposals from organizations 
 91.30  that are knowledgeable about the needs of homeless youth for the 
 91.31  purpose of providing safe houses and transitional housing for 
 91.32  homeless youth.  The commissioner shall also assist in 
 91.33  coordinating funding from federal and state grant programs and 
 91.34  funding available from a variety of sources for efforts to 
 91.35  promote a continuum of services for youth through a consolidated 
 91.36  grant application.  The commissioner shall analyze the needs of 
 92.1   homeless youth and gaps in services throughout the state and 
 92.2   determine how to best serve those needs within the available 
 92.3   funding. 
 92.4      Subd. 2.  [SAFE HOUSES AND TRANSITIONAL HOUSING.] A safe 
 92.5   house provides emergency housing for homeless youth ages 13 to 
 92.6   21.  Transitional housing provides housing for homeless youth 
 92.7   ages 16 to 21 who are transitioning into independent living. 
 92.8      In developing both types of housing, the commissioner shall 
 92.9   try to create a family atmosphere in a neighborhood or community 
 92.10  and, if possible, provide separate but cooperative homes for 
 92.11  males and females.  The following services, or adequate access 
 92.12  to referrals for the following services, must be made available 
 92.13  to the homeless youth: 
 92.14     (1) counseling services for the youth and their families, 
 92.15  on site, to help with problems that resulted in the 
 92.16  homelessness; 
 92.17     (2) job services to help youth find employment in addition 
 92.18  to creating jobs on site, including food service, maintenance, 
 92.19  child care, and tutoring; 
 92.20     (3) health services that are confidential and provide 
 92.21  preventive care services, crisis referrals, and other necessary 
 92.22  health care services; 
 92.23     (4) living skills training to help youth learn how to care 
 92.24  for themselves; and 
 92.25     (5) education services that help youth enroll in academic 
 92.26  programs, if they are currently not in a program.  Enrollment in 
 92.27  an academic program is required for residency in transitional 
 92.28  housing. 
 92.29     Sec. 5.  Minnesota Statutes 1994, section 256F.01, is 
 92.30  amended to read: 
 92.31     256F.01 [PUBLIC POLICY.] 
 92.32     The public policy of this state is to assure that all 
 92.33  children, regardless of minority racial or ethnic heritage, live 
 92.34  in families that offer a safe, permanent relationship with 
 92.35  nurturing parents or caretakers.  To help assure children the 
 92.36  opportunity to establish lifetime relationships, public social 
 93.1   services must strive to provide culturally competent services 
 93.2   and be directed toward: 
 93.3      (1) preventing the unnecessary separation of children from 
 93.4   their families by identifying family problems, assisting 
 93.5   families in resolving their problems, and preventing breakup of 
 93.6   the family if it is desirable and possible; 
 93.7      (2) restoring to their families children who have been 
 93.8   removed, by continuing to provide services to the reunited child 
 93.9   and the families; 
 93.10     (3) placing children in suitable adoptive homes, in cases 
 93.11  where restoration to the biological family is not possible or 
 93.12  appropriate; and 
 93.13     (4) assuring adequate care of children away from their 
 93.14  homes, in cases where the child cannot be returned home or 
 93.15  cannot be placed for adoption. 
 93.16     Sec. 6.  Minnesota Statutes 1994, section 256F.02, is 
 93.17  amended to read: 
 93.18     256F.02 [CITATION.] 
 93.19     Sections 256F.01 to 256F.07 and 256F.10 may be cited as the 
 93.20  "Minnesota family preservation act." 
 93.21     Sec. 7.  Minnesota Statutes 1994, section 256F.03, 
 93.22  subdivision 5, is amended to read: 
 93.23     Subd. 5.  [FAMILY-BASED SERVICES.] "Family-based services" 
 93.24  means one or more of the services described in paragraphs (a) to 
 93.25  (f) provided to families primarily in their own home for a 
 93.26  limited time.  Family-based services eligible for funding under 
 93.27  the family preservation act are the services described in 
 93.28  paragraphs (a) to (f). 
 93.29     (a) [CRISIS SERVICES.] "Crisis services" means professional 
 93.30  services provided within 24 hours of referral to alleviate a 
 93.31  family crisis and to offer an alternative to placing a child 
 93.32  outside the family home.  The services are intensive and time 
 93.33  limited.  The service may offer transition to other appropriate 
 93.34  community-based services. 
 93.35     (b) [COUNSELING SERVICES.] "Counseling services" means 
 93.36  professional family counseling provided to alleviate individual 
 94.1   and family dysfunction; provide an alternative to placing a 
 94.2   child outside the family home; or permit a child to return 
 94.3   home.  The duration, frequency, and intensity of the service is 
 94.4   determined in the individual or family service plan. 
 94.5      (c) [LIFE MANAGEMENT SKILLS SERVICES.] "Life management 
 94.6   skills services" means paraprofessional services that teach 
 94.7   family members skills in such areas as parenting, budgeting, 
 94.8   home management, and communication.  The goal is to strengthen 
 94.9   family skills as an alternative to placing a child outside the 
 94.10  family home or to permit a child to return home.  A social 
 94.11  worker shall coordinate these services within the family case 
 94.12  plan. 
 94.13     (d) [CASE COORDINATION SERVICES.] "Case coordination 
 94.14  services" means professional services provided to an individual, 
 94.15  family, or caretaker as an alternative to placing a child 
 94.16  outside the family home, to permit a child to return home, or to 
 94.17  stabilize the long-term or permanent placement of a child.  
 94.18  Coordinated services are provided directly, are arranged, or are 
 94.19  monitored to meet the needs of a child and family.  The 
 94.20  duration, frequency, and intensity of services is determined in 
 94.21  the individual or family service plan. 
 94.22     (e) [MENTAL HEALTH SERVICES.] "Mental health services" 
 94.23  means the professional services defined in section 245.4871, 
 94.24  subdivision 31. 
 94.25     (f) [EARLY INTERVENTION SERVICES.] "Early intervention 
 94.26  services" means family-based intervention services designed to 
 94.27  help at-risk families avoid crisis situations. 
 94.28     Sec. 8.  Minnesota Statutes 1994, section 256F.03, is 
 94.29  amended by adding a subdivision to read: 
 94.30     Subd. 10.  [FAMILY PRESERVATION CORE SERVICES.] "Family 
 94.31  preservation core services" means adequate capacity of crisis 
 94.32  services as defined in subdivision 5, paragraph (a), plus either 
 94.33  or both counseling services as defined in subdivision 5, 
 94.34  paragraph (b), and mental health services as defined in 
 94.35  subdivision 5, paragraph (e), plus life management skills 
 94.36  services as defined in subdivision 5, paragraph (c). 
 95.1      Sec. 9.  Minnesota Statutes 1994, section 256F.04, 
 95.2   subdivision 1, is amended to read: 
 95.3      Subdivision 1.  [GRANT PROGRAM FAMILY PRESERVATION FUND.] 
 95.4   The commissioner shall establish a statewide family preservation 
 95.5   grant program fund to assist counties in providing placement 
 95.6   prevention and family reunification services.  This fund shall 
 95.7   include a basic grant for family preservation services, a 
 95.8   placement earnings grant under section 256.8711, subdivision 6b, 
 95.9   paragraph (a), and a development grant under section 256.8711, 
 95.10  subdivision 6a, to assist counties in developing and expanding 
 95.11  their family preservation core services as defined in section 
 95.12  256F.03, subdivision 10.  Beginning with calendar year 1998, 
 95.13  after each annual or quarterly calculation, these three 
 95.14  component grants shall be added together and treated as a 
 95.15  single-family preservation grant. 
 95.16     Sec. 10.  Minnesota Statutes 1994, section 256F.04, 
 95.17  subdivision 2, is amended to read: 
 95.18     Subd. 2.  [FORMS AND INSTRUCTIONS.] The commissioner shall 
 95.19  provide necessary forms and instructions to the counties for 
 95.20  their community social services plan, as required in section 
 95.21  256E.09, that incorporate the permanency plan format and 
 95.22  information necessary to apply for a family preservation fund 
 95.23  grant, and to exercise county options under section 256F.05, 
 95.24  subdivision 7, paragraph (a), or subdivision 8, paragraph (c).  
 95.25     Sec. 11.  Minnesota Statutes 1994, section 256F.05, is 
 95.26  amended by adding a subdivision to read: 
 95.27     Subd. 1a.  [DEVELOPMENT OF FAMILY PRESERVATION CORE 
 95.28  SERVICES.] The commissioner shall annually determine whether a 
 95.29  county's family preservation core services, as defined in 
 95.30  section 256F.03, subdivision 10, are developed for that calendar 
 95.31  year.  In making this determination for any given calendar year, 
 95.32  the commissioner shall consider factors for each county such as 
 95.33  which family preservation core services are included in its 
 95.34  community services plan under section 256E.09, the ratio of 
 95.35  expenditures on family preservation core services to 
 95.36  expenditures on out-of-home placements, the availability of 
 96.1   crisis services as defined in section 256F.03, subdivision 5, 
 96.2   paragraph (a), and recent trends in out-of-home placements both 
 96.3   within that county and statewide. 
 96.4      Sec. 12.  Minnesota Statutes 1994, section 256F.05, 
 96.5   subdivision 2, is amended to read: 
 96.6      Subd. 2.  [MONEY AVAILABLE FOR THE BASIC GRANT.] Money 
 96.7   appropriated for family preservation grants to counties under 
 96.8   sections 256F.04 to 256F.07, together with an amount as 
 96.9   determined by the commissioner of title IV-B funds distributed 
 96.10  to Minnesota according to the Social Security Act, United States 
 96.11  Code, title 42, section 621, must be distributed to counties on 
 96.12  a calendar year basis according to the formula in subdivision 3. 
 96.13     Sec. 13.  Minnesota Statutes 1994, section 256F.05, 
 96.14  subdivision 3, is amended to read: 
 96.15     Subd. 3.  [BASIC GRANT FORMULA.] (a) The amount of money 
 96.16  allocated to counties under subdivision 2 must be based on the 
 96.17  following two factors shall first be allocated in amounts equal 
 96.18  to each county's guaranteed floor according to paragraph (b), 
 96.19  and second, any remaining available funds allocated as follows: 
 96.20     (1) 90 percent of the funds shall be allocated based on the 
 96.21  population of the county under age 19 years as compared to the 
 96.22  state as a whole as determined by the most recent data from the 
 96.23  state demographer's office; and 
 96.24     (2) ten percent of the funds shall be allocated based on 
 96.25  the county's percentage share of the number of minority children 
 96.26  in substitute care receiving children's case management services 
 96.27  as defined by the commissioner based on the most recent data as 
 96.28  determined by the most recent department of human services 
 96.29  annual report on children in foster care commissioner. 
 96.30     The amount of money allocated according to formula factor 
 96.31  (1) must not be less than 90 percent of the total allocated 
 96.32  under subdivision 2. 
 96.33     (b) Each county's basic grant guaranteed floor shall be 
 96.34  calculated as follows: 
 96.35     (1) 90 percent of the county's allocation received in the 
 96.36  preceding calendar year.  For calendar year 1996 only, the 
 97.1   allocation received in the preceding calendar year shall be 
 97.2   determined by the commissioner based on the funding previously 
 97.3   distributed as separate grants under sections 256F.04 to 
 97.4   256F.07; and 
 97.5      (2) when the amounts of funds available for allocation is 
 97.6   less than the amount available in the previous year, each 
 97.7   county's previous year allocation shall be reduced in proportion 
 97.8   to the reduction in the statewide funding, for the purpose of 
 97.9   establishing the guaranteed floor. 
 97.10     (c) The commissioner shall regularly review the use of 
 97.11  family preservation fund allocations by county.  The 
 97.12  commissioner may reallocate unexpended or unencumbered money at 
 97.13  any time among those counties that have expended or are 
 97.14  projected to expend their full allocation. 
 97.15     Sec. 14.  Minnesota Statutes 1994, section 256F.05, 
 97.16  subdivision 4, is amended to read: 
 97.17     Subd. 4.  [PAYMENTS.] The commissioner shall make grant 
 97.18  payments to each county whose biennial community social services 
 97.19  plan includes a permanency plan has been approved under section 
 97.20  256F.04, subdivision 2.  The payment must be made basic grant 
 97.21  under subdivisions 2 and 3 and the development grant under 
 97.22  section 256.8711, subdivision 6a, shall be paid to counties in 
 97.23  four installments per year.  The commissioner may certify the 
 97.24  payments for the first three months of a calendar year.  
 97.25  Subsequent payments must be made on May 15, August 15, and 
 97.26  November 15, of each calendar year.  When an amount of title 
 97.27  IV-B funds as determined by the commissioner is made available, 
 97.28  it shall be reimbursed to counties on November 15. shall be 
 97.29  based on reported expenditures and may be adjusted for 
 97.30  anticipated spending patterns.  The placement earnings grant 
 97.31  under section 256.8711, subdivision 6b, paragraph (a), shall be 
 97.32  based on earnings and coordinated with the other payments.  In 
 97.33  calendar years 1996 and 1997, the placement earnings grant and 
 97.34  the development grant shall be distributed separately from the 
 97.35  basic grant, except as provided in subdivision 7, paragraph 
 97.36  (a).  Beginning with calendar year 1998, after each annual or 
 98.1   quarterly calculation, these three component grants shall be 
 98.2   added together into a single-family preservation fund grant and 
 98.3   treated as a single grant. 
 98.4      Sec. 15.  Minnesota Statutes 1994, section 256F.05, 
 98.5   subdivision 5, is amended to read: 
 98.6      Subd. 5.  [INAPPROPRIATE EXPENDITURES.] Family preservation 
 98.7   fund basic, placement earnings, and development grant money must 
 98.8   not be used for: 
 98.9      (1) child day care necessary solely because of the 
 98.10  employment or training to prepare for employment, of a parent or 
 98.11  other relative with whom the child is living; 
 98.12     (2) residential facility payments; 
 98.13     (3) adoption assistance payments; 
 98.14     (4) public assistance payments for aid to families with 
 98.15  dependent children, supplemental aid, medical assistance, 
 98.16  general assistance, general assistance medical care, or 
 98.17  community health services authorized by sections 145A.09 to 
 98.18  145A.13; or 
 98.19     (5) administrative costs for local social services agency 
 98.20  public assistance staff.  
 98.21     Sec. 16.  Minnesota Statutes 1994, section 256F.05, 
 98.22  subdivision 7, is amended to read: 
 98.23     Subd. 7.  [TRANSFER OF FUNDS USES OF PLACEMENT EARNINGS AND 
 98.24  DEVELOPMENT GRANTS.] Notwithstanding subdivision 1, the 
 98.25  commissioner may transfer money from the appropriation for 
 98.26  family preservation grants to counties into the subsidized 
 98.27  adoption account when a deficit in the subsidized adoption 
 98.28  program occurs.  The amount of the transfer must not exceed five 
 98.29  percent of the appropriation for family preservation grants to 
 98.30  counties. (a) For calendar years 1996 and 1997, each county must 
 98.31  use its placement earnings and development grants to develop and 
 98.32  expand its family preservation core services as defined in 
 98.33  section 256F.03, subdivision 10.  If a county demonstrates that 
 98.34  its family preservation core services are developed as provided 
 98.35  in subdivision 1a, then at the county's written request, the 
 98.36  commissioner shall add its placement earnings and development 
 99.1   grant to its basic grant, to be used as a single-family 
 99.2   preservation fund grant. 
 99.3      (b) Beginning with calendar year 1998, each county which 
 99.4   has demonstrated that year that its family preservation core 
 99.5   services are developed as provided in subdivision 1a, shall have 
 99.6   its placement earnings and development grant added to its basic 
 99.7   grant, to be used as a single-family preservation fund grant.  
 99.8   The development grant for any county which has not so 
 99.9   demonstrated shall be redistributed to all counties which have, 
 99.10  in proportion to their calculated development grants. 
 99.11     Sec. 17.  Minnesota Statutes 1994, section 256F.05, 
 99.12  subdivision 8, is amended to read: 
 99.13     Subd. 8.  [USES OF FAMILY PRESERVATION FUND GRANTS FOR 
 99.14  FAMILY-BASED CRISIS SERVICES.] Within the limits of 
 99.15  appropriations made for this purpose, the commissioner may award 
 99.16  grants for the families first program, including section 
 99.17  256F.08, to be distributed on a calendar year basis to counties 
 99.18  to provide programs for family-based crisis services defined in 
 99.19  section 256F.03, subdivision 5.  The commissioner shall ask 
 99.20  counties to present proposals for the funding and shall award 
 99.21  grants for the funding on a competitive basis.  Beginning 
 99.22  January 1, 1993, the state share of the costs of the programs 
 99.23  shall be 75 percent and the county share, 25 percent.  For both 
 99.24  basic grants and single-family preservation fund grants: 
 99.25     (a) A county which has not demonstrated that year that its 
 99.26  family preservation core services are developed as provided in 
 99.27  subdivision 1a, must use its family preservation fund grant 
 99.28  exclusively for family preservation services defined in section 
 99.29  256F.03, subdivision 5, paragraphs (a), (b), (c), and (e). 
 99.30     (b) A county which has demonstrated that year that its 
 99.31  family preservation core services are developed becomes eligible 
 99.32  either to continue using its family preservation fund grant as 
 99.33  provided in paragraph (a), or to exercise the expanded service 
 99.34  option under paragraph (c). 
 99.35     (c) The expanded service option permits an eligible county 
 99.36  to use its family preservation fund grant for child welfare