1.1                          A bill for an act 
  1.2             relating to human services; including provisions for 
  1.3             human services administration; life skills and 
  1.4             self-sufficiency; childrens' programs; economic 
  1.5             self-sufficiency; medical assistance and general 
  1.6             assistance medicare; long-term care; community mental 
  1.7             health and regional treatment centers; health 
  1.8             department; child support enforcement; department of 
  1.9             human services flexibility reforms; appropriating 
  1.10            money; amending Minnesota Statutes 1994, sections 
  1.11            14.03, subdivision 3; 16B.08, subdivision 5; 62A.045; 
  1.12            62A.046; 62A.048; 62A.27; 62N.381, subdivisions 2, 3, 
  1.13            and 4; 144.0721, by adding subdivisions; 144.0723, 
  1.14            subdivisions 1, 2, 3, 4, and 6; 144.122; 144.226, 
  1.15            subdivision 1; 144.56, by adding a subdivision; 
  1.16            144.562, subdivision 2; 144.702, subdivision 2; 
  1.17            144.801, subdivisions 3 and 5; 144.802; 144.803; 
  1.18            144.804; 144.806; 144.807; 144.808; 144.809; 144.8091; 
  1.19            144.8093; 144.8095; 144A.071, subdivisions 2, 3, 4a, 
  1.20            and by adding a subdivision; 144A.073, subdivisions 1, 
  1.21            2, 3, 4, 5, 8, and by adding a subdivision; 144A.31, 
  1.22            subdivision 2a; 144A.33, subdivision 3; 144A.43, 
  1.23            subdivision 3; 144A.47; 144B.01, subdivision 5; 
  1.24            144C.01, subdivision 2; 144C.05, subdivision 1; 
  1.25            144C.07; 144C.08; 144C.09, subdivision 2; 144C.10; 
  1.26            145A.15; 147.01, subdivision 6; 148.921, subdivision 
  1.27            2; 157.03; 171.07, by adding a subdivision; 198.003, 
  1.28            subdivisions 3 and 4; 245.041; 245.4871, subdivisions 
  1.29            12, 33a, and by adding a subdivision; 245.4873, 
  1.30            subdivisions 2 and 6; 245.4874; 245.4875, subdivision 
  1.31            2, and by adding a subdivision; 245.4878; 245.4882, 
  1.32            subdivision 5; 245.4885, subdivision 2; 245.4886, by 
  1.33            adding a subdivision; 245.492, subdivisions 2, 6, 9, 
  1.34            and 23; 245.493, subdivision 2; 245.4932, subdivisions 
  1.35            1, 2, 3, and 4; 245.494, subdivisions 1, 2, and 3; 
  1.36            245.495; 245.496, subdivision 3, and by adding a 
  1.37            subdivision; 245.825; 245A.02, by adding a 
  1.38            subdivision; 245A.03, subdivision 2a; 245A.04, 
  1.39            subdivisions 3, 3b, 7, and 9; 245A.06, subdivisions 2, 
  1.40            4, and by adding a subdivision; 245A.07, subdivision 
  1.41            3; 245A.09, by adding subdivisions; 245A.14, 
  1.42            subdivisions 6 and 7; 246.18, subdivision 4, and by 
  1.43            adding a subdivision; 246.23, subdivision 2; 246.56, 
  1.44            by adding a subdivision; 252.27, subdivisions 1, 1a, 
  1.45            2a, and by adding subdivisions; 252.275, subdivisions 
  1.46            3, 4, and 8; 252.292, subdivision 4; 252.46, 
  2.1             subdivisions 1, 3, 6, 17, and by adding subdivisions; 
  2.2             253B.091; 254A.17, subdivision 3; 254B.02, subdivision 
  2.3             1; 254B.05, subdivisions 1 and 4; 256.014, subdivision 
  2.4             1; 256.015, subdivisions 1, 2, and 7; 256.025, 
  2.5             subdivisions 1, 2, and 3; 256.026; 256.034, 
  2.6             subdivision 1; 256.045, subdivisions 3, 4, 4a, and 5; 
  2.7             256.12, subdivision 14; 256.73, subdivisions 2 and 3a; 
  2.8             256.736, subdivisions 3 and 13; 256.74, subdivision 1, 
  2.9             and by adding a subdivision; 256.76, subdivision 1; 
  2.10            256.8711; 256.9353, subdivision 8; 256.9365; 256.9657, 
  2.11            subdivisions 3 and 4; 256.9685, subdivision 1b, and by 
  2.12            adding subdivisions; 256.969, subdivisions 1, 2b, 9, 
  2.13            10, 16, and by adding subdivisions; 256.975, by adding 
  2.14            a subdivision; 256.98, subdivisions 1 and 8; 256.983, 
  2.15            subdivision 4; 256B.042, subdivision 2; 256B.055, 
  2.16            subdivision 12; 256B.056, subdivision 4, and by adding 
  2.17            a subdivision; 256B.0575; 256B.059, subdivisions 1, 3, 
  2.18            and 5; 256B.0595, subdivisions 1, 2, 3, and 4; 
  2.19            256B.06, subdivision 4; 256B.0625, subdivisions 5, 8, 
  2.20            8a, 13, 13a, 17, 18, 19a, 37, and by adding 
  2.21            subdivisions; 256B.0627, subdivisions 1, 2, 4, and 5; 
  2.22            256B.0628, subdivision 2, and by adding a subdivision; 
  2.23            256B.0641, subdivision 1; 256B.0911, subdivisions 2, 
  2.24            2a, 3, 4, and 7; 256B.0913, subdivisions 4, 5, 8, 12, 
  2.25            14, and by adding subdivisions; 256B.0915, 
  2.26            subdivisions 2, 3, 5, and by adding subdivisions; 
  2.27            256B.092, subdivision 4, and by adding a subdivision; 
  2.28            256B.093, subdivisions 1, 2, 3, and by adding a 
  2.29            subdivision; 256B.15, subdivisions 1a, 2, and by 
  2.30            adding a subdivision; 256B.19, subdivisions 1b, 1c, 
  2.31            and 1d; 256B.27, subdivision 2a; 256B.431, 
  2.32            subdivisions 2b, 2j, 15, 17, 23, and by adding a 
  2.33            subdivision; 256B.432, subdivisions 1, 2, 3, 5, and 6; 
  2.34            256B.49, subdivision 1, and by adding subdivisions; 
  2.35            256B.501, subdivisions 1, 3, 3c, 3g, 8, and by adding 
  2.36            subdivisions; 256B.69, subdivisions 4, 5, 6, 9, and by 
  2.37            adding subdivisions; 256D.02, subdivision 5; 256D.03, 
  2.38            subdivisions 3, 3b, and 4; 256D.05, subdivision 7; 
  2.39            256D.36, subdivision 1; 256D.385; 256D.405, 
  2.40            subdivision 3; 256D.425, subdivision 1, and by adding 
  2.41            a subdivision; 256D.435, subdivisions 1, 3, 4, 5, 6, 
  2.42            and by adding a subdivision; 256D.44, subdivisions 1, 
  2.43            2, 3, 4, 5, and 6; 256D.45, subdivision 1; 256D.46, 
  2.44            subdivisions 1 and 2; 256D.48, subdivision 1; 256E.08, 
  2.45            subdivision 6; 256E.115; 256F.01; 256F.02; 256F.03, 
  2.46            subdivision 5, and by adding a subdivision; 256F.04, 
  2.47            subdivisions 1 and 2; 256F.05, subdivisions 2, 3, 4, 
  2.48            5, 7, 8, and by adding a subdivision; 256F.06, 
  2.49            subdivisions 1, 2, and 4; 256F.09; 256H.01, 
  2.50            subdivisions 9 and 12; 256H.02; 256H.03, subdivisions 
  2.51            1, 2a, 4, 6, and by adding a subdivision; 256H.05, 
  2.52            subdivision 6; 256H.08; 256H.11, subdivision 1; 
  2.53            256H.12, subdivisions 1, 3, and by adding a 
  2.54            subdivision; 256H.15, subdivision 1; 256H.18; 256H.20, 
  2.55            subdivision 3a; 256I.03, subdivision 5, and by adding 
  2.56            a subdivision; 256I.04, subdivisions 2b and 3; 
  2.57            256I.05, subdivisions 1, 1a, and 5; 256I.06, 
  2.58            subdivisions 2 and 6; 257.3571, subdivision 1; 
  2.59            257.3572; 257.3577, subdivision 1; 257.55, subdivision 
  2.60            1; 257.57, subdivision 2; 257.62, subdivisions 1, 5, 
  2.61            and 6; 257.64, subdivision 3; 257.69, subdivisions 1 
  2.62            and 2; 393.07, subdivisions 5 and 10; 393.12; 447.32, 
  2.63            subdivision 5; 501B.89, subdivision 1, and by adding a 
  2.64            subdivision; 518.171, subdivisions 1, 3, 4, 5, 7, and 
  2.65            8; 518.611, subdivisions 2 and 4; 518.613, subdivision 
  2.66            7; 518.615, subdivision 3; 524.6-207; 550.37, 
  2.67            subdivision 14; and Laws 1993, First Special Session 
  2.68            chapter 1, article 7, section 51, subdivision 5; and 
  2.69            article 8, section 30, subdivision 2; proposing coding 
  2.70            for new law in Minnesota Statutes, chapters 144; 145; 
  2.71            157; 214; 245; 245A; 256; and 256B; proposing coding 
  3.1             for new law as Minnesota Statutes, chapters 144D; and 
  3.2             144E; repealing Minnesota Statutes 1994, sections 
  3.3             38.161; 38.162; 62C.141; 62C.143; 62D.106; 62E.04, 
  3.4             subdivisions 9 and 10; 144.8097; 144A.31, subdivisions 
  3.5             2b, 4, 5, 6, and 7; 157.01; 157.02; 157.031; 157.04; 
  3.6             157.045; 157.05; 157.08; 157.12; 157.13; 157.14; 
  3.7             245.492, subdivision 20; 245.825, subdivision 2; 
  3.8             245.98, subdivision 3; 252.275, subdivisions 4a and 
  3.9             10; 256.851; 256D.35, subdivisions 14 and 19; 256D.36, 
  3.10            subdivision 1a; 256D.37; 256D.425, subdivision 3; 
  3.11            256D.435, subdivisions 2, 7, 8, 9, and 10; 256D.44, 
  3.12            subdivision 7; 256E.06, subdivisions 12 and 13; 
  3.13            256F.05, subdivisions 2a and 4a; 256F.06, subdivision 
  3.14            3; 256F.09, subdivision 4; and 256H.03, subdivisions 2 
  3.15            and 5. 
  3.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  3.17                             ARTICLE 1
  3.18                           APPROPRIATIONS 
  3.19  Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
  3.20     The sums shown in the columns marked "APPROPRIATIONS" are 
  3.21  appropriated from the general fund, or any other fund named, to 
  3.22  the agencies and for the purposes specified in the following 
  3.23  sections of this article, to be available for the fiscal years 
  3.24  indicated for each purpose.  The figures "1996" and "1997" where 
  3.25  used in this article, mean that the appropriation or 
  3.26  appropriations listed under them are available for the fiscal 
  3.27  year ending June 30, 1996, or June 30, 1997, respectively.  
  3.28  Where a dollar amount appears in parentheses, it means a 
  3.29  reduction of an appropriation.  
  3.30                          SUMMARY BY FUND
  3.31  APPROPRIATIONS                                      BIENNIAL
  3.32                            1996          1997           TOTAL
  3.33  General          $2,402,943,000 $2,598,629,000 $5,001,572,000
  3.34  Local Government
  3.35  Trust Fund           50,499,000        -0-         50,499,000 
  3.36  State Government
  3.37  Special Revenue      24,853,000     24,830,000     49,683,000
  3.38  Metropolitan Landfill 
  3.39  Contingency Action Fund 193,000        193,000        386,000
  3.40  Trunk Highway         1,513,000      1,513,000      3,026,000
  3.41  Special Revenue           8,000          8,000         16,000
  3.42  TOTAL             2,480,009,000  2,625,173,000  5,105,182,000
  3.43                                             APPROPRIATIONS 
  3.44                                         Available for the Year 
  3.45                                             Ending June 30 
  3.46                                            1996         1997 
  4.1   Sec. 2.  COMMISSIONER OF 
  4.2   HUMAN SERVICES 
  4.3   Subdivision 1.  Total 
  4.4   Appropriation                      2,395,537,000  2,540,250,000
  4.5                 Summary by Fund
  4.6   General           2,345,038,000 2,540,250,000
  4.7   Local Government
  4.8   Trust Fund           50,499,000         -0-  
  4.9   Subd. 2.  Finance and Management
  4.10  General
  4.11      20,126,000     21,396,000
  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  shall continue to operate the 
  4.36  department of human services 
  4.37  communication systems account 
  4.38  established in Laws 1993, First Special 
  4.39  Session chapter 1, article 1, section 
  4.40  2, subdivision 2, to manage shared 
  4.41  communication costs necessary for the 
  4.42  operation of the programs the 
  4.43  commissioner supervises.  The 
  4.44  commissioner may distribute the costs 
  4.45  of operating and maintaining 
  4.46  communication systems to participants 
  4.47  in a manner that reflects actual system 
  4.48  usage.  Costs may include acquisition, 
  4.49  licensing, insurance, maintenance, 
  4.50  repair, staff time, and other direct 
  4.51  costs as determined by the 
  4.52  commissioner.  The commissioner may 
  4.53  accept on behalf of the state any gift, 
  4.54  bequest, devise, or personal property 
  4.55  of any kind or money tendered to the 
  4.56  state for any lawful purpose pertaining 
  4.57  to the communication activities of the 
  4.58  department.  Any money so received must 
  4.59  be deposited in the department of human 
  4.60  services communication systems 
  4.61  account.  Money collected by the 
  4.62  commissioner for the use of 
  5.1   communication systems must be deposited 
  5.2   in the state communication systems 
  5.3   account and is appropriated to the 
  5.4   commissioner for purposes of this 
  5.5   section. 
  5.6   [ISSUANCE OPERATIONS CENTER.] Payments 
  5.7   to the commissioner from other 
  5.8   governmental units and private 
  5.9   enterprises for (1) services performed 
  5.10  by the issuance operations center or (2)
  5.11  reports generated by the payment and 
  5.12  eligibility systems must be deposited 
  5.13  in the state systems account authorized 
  5.14  in Minnesota Statutes, section 
  5.15  256.014.  These payments are 
  5.16  appropriated to the commissioner for 
  5.17  the operation of the issuance center or 
  5.18  system, in accordance with Minnesota 
  5.19  Statutes, section 256.014. 
  5.20  [SOCIAL SERVICES INFORMATION PROJECT.] 
  5.21  If the commissioner proceeds with the 
  5.22  development and implementation of the 
  5.23  social services information system 
  5.24  (SSIS), the commissioner shall report 
  5.25  annually by February 1 on the status of 
  5.26  the project to the chairs of the house 
  5.27  health and human services committee and 
  5.28  of the senate health care and family 
  5.29  services committees.  This report must 
  5.30  include an explanation of the linkages 
  5.31  between the SSIS and the MAXIS and MMIS 
  5.32  computer systems.  The SSIS project 
  5.33  must not result in an increase in the 
  5.34  permanent staff of the department of 
  5.35  human services. 
  5.36  [PRINTING COSTS.] In order to reduce 
  5.37  printing costs, the commissioner shall 
  5.38  solicit bids for printing from inmate 
  5.39  work programs operated by the 
  5.40  department of corrections. 
  5.41  Subd. 3.  Life Skills 
  5.42  Self-Sufficiency 
  5.43     114,755,000    120,918,000
  5.44                Summary by Fund
  5.45  General              64,256,000   120,918,000
  5.46  Local Government
  5.47  Trust                50,499,000           -0- 
  5.48  The amounts that may be spent from this 
  5.49  appropriation for each purpose are as 
  5.50  follows: 
  5.51  (a) Semi-Independent Living 
  5.52  Services (SILS) Grants              
  5.53       4,766,000      4,819,000
  5.54  (b) Chemical Dependency
  5.55  Consolidated Treatment
  5.56      41,230,000     45,080,000
  5.57  (c) Deaf and Hard of Hearing 
  6.1   Services Grants
  6.2          501,000        501,000
  6.3   (d) Community Social Services Grants
  6.4       51,476,000     52,902,000
  6.5                 Summary by Fund
  6.6   General                 977,000    52,902,000
  6.7   Local Government
  6.8   Trust                50,499,000           -0-
  6.9   [CSSA APPROPRIATION.] The increased 
  6.10  appropriation available in fiscal year 
  6.11  1996 and thereafter must be used to 
  6.12  increase each county's aid 
  6.13  proportionately over the aid received 
  6.14  in calendar year 1994. 
  6.15  (e) Consumer Support 
  6.16         125,000      1,832,000
  6.17  (f) Developmental Disabilities
  6.18  Family Support Grants
  6.19       1,599,000      1,074,000
  6.20  (g) Aging Ombudsman          
  6.21         166,000        166,000
  6.22  (h) Aging Grants
  6.23       4,103,000      4,103,000
  6.24  (i) American Indian Chemical 
  6.25  Dependency Grants and Chemical 
  6.26  Dependency Special Grants
  6.27       2,265,000      2,265,000
  6.28  (j) Chemical Dependency
  6.29  Consolidated Treatment - Nonentitled
  6.30       2,100,000      2,100,000
  6.31  (k) Administration and Other Grants
  6.32       6,424,000      6,076,000 
  6.33  [CROSS-CULTURAL TRAINING.] Of this 
  6.34  appropriation, $50,000 each year is for 
  6.35  cross-cultural training for deaf and 
  6.36  hard of hearing children and their 
  6.37  families and is available only upon the 
  6.38  receipt of $25,000 each year in 
  6.39  nonstate matching funds. 
  6.40  [INDIAN ELDERS.] The Minnesota board on 
  6.41  aging shall provide staff out of the 
  6.42  available appropriation to support the 
  6.43  Indian elders coordinator position. 
  6.44  [USE OF MENTAL HEALTH COLLABORATIVE 
  6.45  FUNDS.] Once a children's mental health 
  6.46  collaborative has been formed, the 
  6.47  commissioner may provide and a 
  7.1   collaborative may receive funding for 
  7.2   two years for planning and 
  7.3   implementation purposes.  This does not 
  7.4   preclude existing collaboratives from 
  7.5   getting additional start-up funds. 
  7.6   [CHEMICAL DEPENDENCY RATE FREEZE.] 
  7.7   Beginning January 1, 1996, rates for 
  7.8   chemical dependency treatment services 
  7.9   provided according to Minnesota 
  7.10  Statutes, chapter 254B, shall be the 
  7.11  same as those rates negotiated 
  7.12  according to Minnesota Statutes, 
  7.13  section 254B.03, subdivision 1, 
  7.14  paragraph (b), and effective January 1, 
  7.15  1995.  Rates for vendors under 
  7.16  Minnesota Statutes, chapter 254B, who 
  7.17  are enrolled after January 1, 1995, 
  7.18  shall not be higher than the statewide 
  7.19  average rate for vendors licensed at 
  7.20  the same level of care.  Counties and 
  7.21  providers shall not negotiate an 
  7.22  increase in rates between January 1, 
  7.23  1995, and December 31, 1997. 
  7.24  [SILS TRANSFER.] (a) For the purpose of 
  7.25  transferring certain persons from the 
  7.26  semi-independent living services (SILS) 
  7.27  program to the home and community-based 
  7.28  waivered services program for persons 
  7.29  with mental retardation or related 
  7.30  conditions, the amount of funds 
  7.31  transferred between the SILS account or 
  7.32  the state community social services 
  7.33  account and the state medical 
  7.34  assistance account shall be based on 
  7.35  each county's participation in 
  7.36  transferring persons to the waivered 
  7.37  services program.  No person for whom 
  7.38  these funds are transferred shall be 
  7.39  required to obtain a new living 
  7.40  arrangement, notwithstanding Minnesota 
  7.41  Statutes, section 252.28, subdivision 
  7.42  3, paragraph (4), and Minnesota Rules, 
  7.43  parts 9525.1800, subpart 25a, and 
  7.44  9525.1869, subpart 6.  When supported 
  7.45  living services are provided to persons 
  7.46  for whom these funds are transferred, 
  7.47  the commissioner may substitute the 
  7.48  licensing standards of Minnesota Rules, 
  7.49  parts 9525.0500 to 9525.0660, for parts 
  7.50  9525.2000 to 9525.2140, if the services 
  7.51  remain nonresidential as defined in 
  7.52  Minnesota Statutes, section 245A.02, 
  7.53  subdivision 10.  For the purposes of 
  7.54  Minnesota Statutes, chapter 256G, when 
  7.55  a service is provided under these 
  7.56  substituted licensing standards, the 
  7.57  status of residence of the recipient of 
  7.58  that service shall continue to be 
  7.59  considered excluded time.  
  7.60  (b) Contingent upon continuing federal 
  7.61  approval of expanding eligibility for 
  7.62  home and community-based services for 
  7.63  persons with mental retardation or 
  7.64  related conditions, the commissioner 
  7.65  shall reduce the state SILS payments to 
  7.66  each county by the total medical 
  7.67  assistance expenditures for 
  7.68  nonresidential services attributable to 
  8.1   former SILS recipients transferred by 
  8.2   the county to the home and 
  8.3   community-based services program for 
  8.4   persons with mental retardation or 
  8.5   related conditions.  Of the reduced 
  8.6   SILS payments determined above, the 
  8.7   commissioner shall transfer to the 
  8.8   state medical assistance account an 
  8.9   amount equal to the nonfederal share of 
  8.10  the nonresidential services under the 
  8.11  home and community-based services for 
  8.12  persons with mental retardation or 
  8.13  related conditions.  Of the remaining 
  8.14  reduced SILS payments, 80 percent shall 
  8.15  be returned to the SILS grant program 
  8.16  to provide additional SILS services and 
  8.17  20 percent shall be transferred to the 
  8.18  general fund. 
  8.19  [NEW ICF/MR.] For the fiscal year 
  8.20  ending June 30, 1996, a newly 
  8.21  constructed or newly established 
  8.22  intermediate care facility for persons 
  8.23  with mental retardation that is 
  8.24  developed and financed during that 
  8.25  period shall not be subject to the 
  8.26  equity requirements in Minnesota 
  8.27  Statutes, section 256B.501, subdivision 
  8.28  11, paragraph (d), or to Minnesota 
  8.29  Rules, part 9553.0060, subpart 3, item 
  8.30  F, provided that the provider's 
  8.31  interest rate does not exceed the 
  8.32  interest rate available through state 
  8.33  agency tax exempt financing. 
  8.34  [ICF/MR RECEIVERSHIP.] For the fiscal 
  8.35  year ending June 30, 1996, if a 
  8.36  facility which is in receivership under 
  8.37  Minnesota Statutes, section 245A.12 or 
  8.38  245A.13, is sold to an unrelated 
  8.39  organization:  (a) the facility shall 
  8.40  be considered a newly established 
  8.41  facility for rate setting purposes, 
  8.42  notwithstanding any provisions to the 
  8.43  contrary in Minnesota Statutes, section 
  8.44  256B.501, subdivision 11; and (b) the 
  8.45  facility's historical basis for the 
  8.46  physical plant, land, and land 
  8.47  improvements for each facility must not 
  8.48  exceed the prior owner's aggregate 
  8.49  historical basis for these same assets 
  8.50  for each facility.  The allocation of 
  8.51  the purchase price between land, land 
  8.52  improvements, and physical plant shall 
  8.53  be based on the real estate appraisal 
  8.54  using the depreciated replacement cost 
  8.55  method. 
  8.56  [GRH TO CSSA TRANSFER.] For the fiscal 
  8.57  year ending June 30, 1995, the 
  8.58  commissioner may transfer funds from 
  8.59  the group residential housing (GRH) 
  8.60  account to county community social 
  8.61  services act (CSSA) grants to provide 
  8.62  continuous funding for persons no 
  8.63  longer eligible for GRH payments for 
  8.64  the following reasons:  they reside in 
  8.65  a setting with only a semi-independent 
  8.66  living services license; or they reside 
  8.67  in family foster care settings and have 
  8.68  become ineligible for GRH difficulty of 
  9.1   care payments due to receipt of mental 
  9.2   retardation/related conditions waivered 
  9.3   services.  The amount to be transferred 
  9.4   must not exceed the amount of GRH 
  9.5   payments for actual residents in the 
  9.6   affected GRH settings during the fiscal 
  9.7   year 1995.  The amount transferred is 
  9.8   to be added to the affected county's 
  9.9   CSSA base.  This paragraph is effective 
  9.10  the day following final enactment. 
  9.11  [COUNTY MAINTENANCE-MEALS-AGING.] The 
  9.12  supplemental funding for nutrition 
  9.13  programs serving counties where 
  9.14  congregate and home-delivered meals 
  9.15  were locally financed prior to 
  9.16  participation in the nutrition program 
  9.17  of the Older Americans Act shall be 
  9.18  awarded at no less than the same levels 
  9.19  as in fiscal year 1995. 
  9.20  Subd. 4.  Children's Program          19,860,000     21,453,000
  9.21  The amounts that may be spent from this 
  9.22  appropriation for each purpose are as 
  9.23  follows: 
  9.24  (a) Children's Trust Fund Grants
  9.25         247,000        247,000
  9.26  (b) Families With Children
  9.27  Services Grants and Administration
  9.28       1,718,000      1,710,000
  9.29  (c) Family Service Collaborative Grants
  9.30       1,000,000      1,500,000
  9.31  (d) Family Preservation, Family Support,
  9.32  and Child Protection Grants
  9.33       8,573,000      8,573,000
  9.34  (e) Subsidized Adoption Grants
  9.35       5,587,000      6,688,000
  9.36  (f) Other Families with Children
  9.37  Services Grants
  9.38       2,735,000      2,735,000
  9.39  [FAMILY SERVICES COLLABORATIVE.] Plans 
  9.40  for the expenditure of funds for family 
  9.41  services collaboratives must be 
  9.42  approved by the children's cabinet 
  9.43  according to criteria in Minnesota 
  9.44  Statutes, section 121.8355.  Money 
  9.45  appropriated for these purposes may be 
  9.46  expended in either year of the 
  9.47  biennium.  Money appropriated for 
  9.48  family services collaboratives is also 
  9.49  available for start-up funds under 
  9.50  Minnesota Statutes, section 245.492, 
  9.51  subdivision 19, for children's mental 
  9.52  health collaboratives. 
  9.53  [HOME CHOICE PROGRAM.] Of this 
  9.54  appropriation, $75,000 each year must 
 10.1   be used as a grant to the metropolitan 
 10.2   council to support the housing and 
 10.3   related counseling component of the 
 10.4   home choice program. 
 10.5   [FOSTER CARE.] Foster care, as defined 
 10.6   in Minnesota Statutes, section 260.015, 
 10.7   subdivision 7, is not a community 
 10.8   social service as defined in Minnesota 
 10.9   Statutes, section 256E.03, subdivision 
 10.10  2, paragraph (a).  This paragraph is 
 10.11  effective the day following final 
 10.12  enactment. 
 10.13  [NEW CHANCE.] Of this appropriation, 
 10.14  $100,000 each year is for a grant to 
 10.15  the New Chance demonstration project 
 10.16  that provides comprehensive services to 
 10.17  young AFDC recipients who became 
 10.18  pregnant as teenagers and dropped out 
 10.19  of high school.  The commissioner shall 
 10.20  provide an annual report on the 
 10.21  progress of the demonstration project, 
 10.22  including specific data on participant 
 10.23  outcomes in comparison to a control 
 10.24  group that received no services.  The 
 10.25  commissioner shall also include 
 10.26  recommendations on whether strategies 
 10.27  or methods that have proven successful 
 10.28  in the demonstration project should be 
 10.29  incorporated into the STRIDE employment 
 10.30  program for AFDC recipients. 
 10.31  [HIPPY CARRY FORWARD.] $50,000 in 
 10.32  unexpended money appropriated in fiscal 
 10.33  year 1995 for the Home Instruction 
 10.34  Program for Preschool Youngsters 
 10.35  (HIPPY) in Laws 1994, chapter 636, 
 10.36  article 1, section 11, does not cancel 
 10.37  but is available for the same purposes 
 10.38  for fiscal year 1996. 
 10.39  [COMMUNITY COLLABORATIVE MATCHING 
 10.40  GRANT.] Of the funds appropriated for 
 10.41  family services collaboratives, $75,000 
 10.42  in fiscal year 1996 shall be used for 
 10.43  the commissioner of human services to 
 10.44  provide a matching grant for community 
 10.45  collaborative projects for children and 
 10.46  youth developed by a regional 
 10.47  organization established under 
 10.48  Minnesota Statutes, section 116N.08, to 
 10.49  receive rural development challenge 
 10.50  grants.  The regional organization must 
 10.51  include a broad cross-section of public 
 10.52  and private sector community 
 10.53  representatives to develop programs, 
 10.54  services or facilities to address 
 10.55  specific community needs of children 
 10.56  and youth.  The regional organization 
 10.57  must also provide a two-to-one match of 
 10.58  nonstate dollars for this grant. 
 10.59  [INDIAN CHILD WELFARE GRANTS.] $100,000 
 10.60  is appropriated from the general fund 
 10.61  to the commissioner of human services 
 10.62  for the purposes of providing 
 10.63  compliance grants to an Indian child 
 10.64  welfare defense corporation, pursuant 
 10.65  to Minnesota Statutes, section 
 10.66  257.3571, subdivision 2a, to be 
 11.1   available until June 30, 1997. 
 11.2   Subd. 5.  Economic Self-Sufficiency
 11.3   General
 11.4      317,950,000    321,696,000 
 11.5   The amounts that may be spent from this 
 11.6   appropriation for each purpose are as 
 11.7   follows: 
 11.8   (a) STRIDE Grants           
 11.9        8,939,000      8,211,000
 11.10  (b) AFDC Grants              
 11.11     143,568,000    146,772,000
 11.12  (c) General Assistance Grants
 11.13      45,707,000     45,009,000
 11.14  (d) Work Readiness Grants   
 11.15       1,573,000         -0-
 11.16  (e) Minnesota Supplemental Aid
 11.17      22,493,000     25,757,000
 11.18  (f) Minnesota Family Investment
 11.19  Plan (MFIP) Grants
 11.20      21,307,000     15,150,000
 11.21  (g) Child-Care Fund Entitlement Grants
 11.22      17,208,000     19,780,000
 11.23  (h) Child Support Enforcement Grants
 11.24       9,785,000      9,785,000
 11.25  (i) Child Care Fund - Nonentitled
 11.26      15,526,000     19,751,000
 11.27  (j) Administration and Other Grants
 11.28      31,844,000     31,481,000
 11.29  [FOOD STAMP EMPLOYMENT AND TRAINING.] 
 11.30  Federal food stamp employment and 
 11.31  training funds are appropriated to the 
 11.32  commissioner to reimburse counties for 
 11.33  food stamp employment and training 
 11.34  expenditures. 
 11.35  [STATE TAKEOVER ACCELERATION.] 
 11.36  Notwithstanding Minnesota Statutes, 
 11.37  section 256.025, $800,000 of the funds 
 11.38  appropriated for fiscal year 1996 under 
 11.39  Minnesota Statutes, section 256.026, 
 11.40  shall be used to reimburse the county 
 11.41  share of project STRIDE case management 
 11.42  and work readiness employment and 
 11.43  training services for the first six 
 11.44  months of calendar year 1995. 
 12.1   [CASH BENEFITS IN ADVANCE.] The 
 12.2   commissioner, with the advance approval 
 12.3   of the commissioner of finance, is 
 12.4   authorized to issue cash assistance 
 12.5   benefits up to two days before the 
 12.6   first day of each month, including two 
 12.7   days before the start of each state 
 12.8   fiscal year.  Of the money appropriated 
 12.9   for the aid to families with dependent 
 12.10  children program for fiscal year 1996, 
 12.11  $12,000,000 is available in fiscal year 
 12.12  1995.  If that amount is insufficient 
 12.13  for the costs incurred, an additional 
 12.14  amount of the fiscal year 1996 
 12.15  appropriation as needed may be 
 12.16  transferred with the advance approval 
 12.17  of the commissioner of finance.  This 
 12.18  paragraph is effective the day 
 12.19  following final enactment. 
 12.20  [MFIP TRANSFER.] Unexpended money 
 12.21  appropriated for the Minnesota family 
 12.22  investment plan in fiscal year 1996 
 12.23  does not cancel but is available for 
 12.24  those purposes in fiscal year 1997. 
 12.25  [PATERNITY ESTABLISHMENT.] Federal 
 12.26  matching funds from the hospital 
 12.27  acknowledgment reimbursement program 
 12.28  may be retained by the commissioner to 
 12.29  establish paternity in child support 
 12.30  cases.  These federal matching funds 
 12.31  are appropriated to the commissioner 
 12.32  and must be used for education and 
 12.33  public information concerning paternity 
 12.34  establishment and the prevention of 
 12.35  nonmarital births. 
 12.36  [CHILD SUPPORT INCENTIVES.] The 
 12.37  commissioner may transfer money 
 12.38  appropriated for child support 
 12.39  enforcement county performance 
 12.40  incentives for fiscal years 1996 and 
 12.41  1997 between county performance 
 12.42  incentive accounts.  Unexpended money 
 12.43  in fiscal year 1996 does not cancel but 
 12.44  is available for county performance 
 12.45  incentives in fiscal year 1997. 
 12.46  [MINNESOTA PARENTS' FAIR SHARE.] 
 12.47  Unexpended money appropriated for 
 12.48  Minnesota parents' fair share in fiscal 
 12.49  year 1996 does not cancel but is 
 12.50  available to the commissioner for this 
 12.51  program in fiscal year 1997. 
 12.52  [GA/AFDC TO SSI CONVERSION.] The 
 12.53  commissioner may contract with a 
 12.54  private entity to convert general 
 12.55  assistance and AFDC recipients to the 
 12.56  federal Supplemental Security Income 
 12.57  program.  The contract shall pay only 
 12.58  for cases successfully converted, at a 
 12.59  rate to be negotiated by the 
 12.60  commissioner. 
 12.61  [GA STANDARD.] The commissioner shall 
 12.62  set the monthly standard of assistance 
 12.63  for general assistance units consisting 
 12.64  of an adult recipient who is childless 
 12.65  and unmarried or living apart from his 
 13.1   or her parents or a legal guardian at 
 13.2   $203. 
 13.3   [AFDC SUPPLEMENTARY GRANTS.] Of the 
 13.4   appropriation for aid to families with 
 13.5   dependent children, the commissioner 
 13.6   shall provide supplementary grants not 
 13.7   to exceed $200,000 a year for aid to 
 13.8   families with dependent children.  The 
 13.9   commissioner shall include the 
 13.10  following costs in determining the 
 13.11  amount of the supplementary grants:  
 13.12  major home repairs, repair of major 
 13.13  home appliances, utility recaps, 
 13.14  supplementary dietary needs not covered 
 13.15  by medical assistance, and replacements 
 13.16  of furnishings and essential major 
 13.17  appliances. 
 13.18  [WORK READINESS ELIMINATION.] 
 13.19  Notwithstanding Minnesota Statutes, 
 13.20  section 256.025, $1,573,000 of the 
 13.21  funds appropriated for fiscal year 1996 
 13.22  under Minnesota Statutes, section 
 13.23  256.026, must be used to reimburse the 
 13.24  county share of work readiness grants 
 13.25  for the first six months of calendar 
 13.26  year 1995. 
 13.27  [FEDERAL WELFARE REFORM.] 
 13.28  Notwithstanding the provisions of 
 13.29  Minnesota Statutes, section 256.011 or 
 13.30  any other law to the contrary, the 
 13.31  commissioner of human services may not 
 13.32  implement changes in human services 
 13.33  block grants and entitlement programs 
 13.34  mandated by the 104th Congress, without 
 13.35  authorization by the Minnesota 
 13.36  Legislature. 
 13.37  Subd. 6.  Health Care 
 13.38  General
 13.39    1,668,242,000  1,794,408,000 
 13.40  The amounts that may be spent from this 
 13.41  appropriation for each purpose are as 
 13.42  follows: 
 13.43  (a) Group Residential Housing Grants
 13.44      48,284,000     54,776,000
 13.45  (b) MA Long-Term Care Facilities
 13.46     540,531,000    556,857,000
 13.47  (c) MA Long-Term Care Waivers
 13.48  and Home Care
 13.49     202,821,000    217,781,000
 13.50  (d) MA Managed Care and 
 13.51  Fee-for-Service
 13.52     581,671,000    659,554,000
 13.53  (e) General Assistance Medical Care
 13.54     224,007,000    230,400,000
 14.1   (f) Alternative Care         
 14.2       37,251,000     41,053,000
 14.3   (g) Medicaid Management 
 14.4   Information System
 14.5       10,657,000     10,657,000
 14.6   (h) Administration and Other Grants
 14.7       23,020,000     23,330,000
 14.8   [PREADMISSION SCREENING TRANSFER.] 
 14.9   Effective the day following final 
 14.10  enactment, up to $40,000 of the 
 14.11  appropriation for preadmission 
 14.12  screening and alternative care for 
 14.13  fiscal year 1995 may be transferred to 
 14.14  the health care administration account 
 14.15  to pay the state's share of county 
 14.16  claims for conducting nursing home 
 14.17  assessments for persons with mental 
 14.18  illness or mental retardation as 
 14.19  required by Public Law Number 100-203. 
 14.20  [ICF/MR AND NURSING FACILITY 
 14.21  INFLATION.] The commissioner of human 
 14.22  services shall grant inflation 
 14.23  adjustments for nursing facilities with 
 14.24  rate years beginning during the 
 14.25  biennium according to Minnesota 
 14.26  Statutes, section 256B.431, and shall 
 14.27  grant inflation adjustments for 
 14.28  intermediate care facilities for 
 14.29  persons with mental retardation or 
 14.30  related conditions with rate years 
 14.31  beginning during the biennium according 
 14.32  to Minnesota Statutes, section 256B.501.
 14.33  [ICF/MR RATE EXEMPTIONS.] For the rate 
 14.34  year beginning October 1, 1995, the 
 14.35  commissioner shall exempt ICF/MR 
 14.36  facilities from reductions to the 
 14.37  payment rates under Minnesota Statutes, 
 14.38  section 256B.501, subdivision 5b, if 
 14.39  the facility:  (1) has had a settle-up 
 14.40  payment rate established in the 
 14.41  reporting year preceding the rate year 
 14.42  for a one-time rate adjustment; (2) is 
 14.43  a newly established facility; (3) is an 
 14.44  A to B licensure conversion project 
 14.45  under the reimbursement rule; (4) has a 
 14.46  payment rate subject to a community 
 14.47  conversion project under Minnesota 
 14.48  Statutes, section 252.292; or (5) has a 
 14.49  payment rate established under 
 14.50  Minnesota Statutes, section 245A.12 or 
 14.51  245A.13.  The commissioner shall 
 14.52  consider these exceptions in the 
 14.53  promulgation of permanent rules for 
 14.54  payment rates to be effective on or 
 14.55  after October 1, 1996. 
 14.56  [MINNESOTACARE PHARMACY.] 
 14.57  Notwithstanding the amendments in this 
 14.58  act to Minnesota Statutes, section 
 14.59  256B.0625, subdivision 13, the pharmacy 
 14.60  dispensing fee in the MinnesotaCare 
 14.61  program shall be $4.10. 
 15.1   [ALTERNATIVE CARE TRANSFER.] Any money 
 15.2   allocated to the alternative care 
 15.3   program that is not spent for the 
 15.4   purposes indicated does not cancel but 
 15.5   shall be transferred to the medical 
 15.6   assistance account. 
 15.7   [RATABLE REDUCTION.] For services 
 15.8   rendered on or after July 1, 1995, the 
 15.9   commissioner shall ratably reduce 
 15.10  general assistance medical care 
 15.11  payments for all services except 
 15.12  pharmacy services by 4.0 percent. 
 15.13  [INFLATIONARY FORECAST ERRORS.] The 
 15.14  commissioner shall adjust the medical 
 15.15  assistance hospital cost index under 
 15.16  Minnesota Statutes, section 256.969, 
 15.17  subdivision 1, for admissions occurring 
 15.18  on or after July 1, 1995, to recover 
 15.19  payments under both medical assistance 
 15.20  and general assistance medical care 
 15.21  made to hospitals in prior years in 
 15.22  which projected inflation exceeded 
 15.23  actual inflation.  The adjustment shall 
 15.24  be determined by the commissioner and 
 15.25  established at a level sufficient to 
 15.26  recover the difference between 
 15.27  projected inflation and actual 
 15.28  inflation for rate years 1990 to 1992 
 15.29  by June 30, 1997. 
 15.30  [PREADMISSION SCREENING RATE.] The 
 15.31  preadmission screening payment to all 
 15.32  counties shall continue at the payment 
 15.33  amount in effect for fiscal year 1995. 
 15.34  [PAS/AC APPROPRIATION.] The 
 15.35  commissioner may expend the money 
 15.36  appropriated for preadmission screening 
 15.37  and the alternative care program for 
 15.38  these purposes in either year of the 
 15.39  biennium. 
 15.40  [SAIL TRANSFER.] Appropriations for 
 15.41  administrative costs associated with 
 15.42  the senior's agenda for independent 
 15.43  living (SAIL) program may be 
 15.44  transferred to SAIL grants as the 
 15.45  commissioner determines necessary to 
 15.46  facilitate the delivery of the program. 
 15.47  [STUDY OF OUTPATIENT RATES.] The 
 15.48  commissioner shall conduct a review of 
 15.49  payment rates and methodologies for 
 15.50  medical services that are provided on 
 15.51  an outpatient basis.  The commissioner 
 15.52  may convene a review panel that is 
 15.53  comprised of agency staff and staff 
 15.54  from hospitals and physician clinics to 
 15.55  assist in the review.  The commissioner 
 15.56  shall submit a report on the results of 
 15.57  the review, along with any 
 15.58  recommendations for changes to the 
 15.59  payment system for outpatient services, 
 15.60  to the governor and the legislature by 
 15.61  January 15, 1996. 
 15.62  [ADDITIONAL WAIVERED SERVICES.] (a) The 
 15.63  commissioner shall seek the necessary 
 15.64  amendments to home and community-based 
 16.1   waiver programs to provide services to 
 16.2   persons who, due to the inability to 
 16.3   direct their own care, are no longer 
 16.4   eligible for personal care assistant 
 16.5   services but are eligible for the 
 16.6   community alternatives for disabled 
 16.7   individuals (CADI), community 
 16.8   alternative care (CAC), mental 
 16.9   retardation or related conditions 
 16.10  (MR/RC), traumatic brain injury (TBI), 
 16.11  or elderly waivers.  These recipients 
 16.12  who transfer from personal care 
 16.13  services to home and community-based 
 16.14  waiver programs shall not be denied 
 16.15  personal care services until waivered 
 16.16  services are available.  
 16.17  (b) Notwithstanding Minnesota Rules, 
 16.18  parts 9525.1800 to 9525.1930 and 
 16.19  Minnesota Statutes, section 256B.092, 
 16.20  subdivision 4, resources for home and 
 16.21  community-based services for persons 
 16.22  with mental retardation or related 
 16.23  conditions, made available for the 
 16.24  purpose of providing alternative 
 16.25  services for persons affected by the 
 16.26  PCA restructuring, shall be allocated 
 16.27  based on criteria that considers the 
 16.28  assessed needs and home care 
 16.29  authorization levels of persons 
 16.30  affected by the restructuring and 
 16.31  provides preference to these persons 
 16.32  during the allocation process. 
 16.33  [CHILDREN INELIGIBLE FOR TEFRA.] When a 
 16.34  child is determined ineligible for 
 16.35  TEFRA or a child or adult for PCA 
 16.36  services, the commissioner shall 
 16.37  provide the adult or the child's parent 
 16.38  or guardian with information on how to 
 16.39  apply for alternative services from the 
 16.40  county, the local mental health 
 16.41  collaborative, the public health 
 16.42  agency, the departments of health and 
 16.43  human services, and the Minnesota 
 16.44  comprehensive health association. 
 16.45  [ALLOCATION OF WAIVERED SLOTS.] In 
 16.46  allocating waiver slots to counties 
 16.47  under Minnesota Statutes, sections 
 16.48  256B.092 and 256B.501, the commissioner 
 16.49  shall ensure that at least as many 
 16.50  individuals are served from county 
 16.51  waiting lists as the net census 
 16.52  reduction from regional treatment 
 16.53  centers.  Any unexpended appropriations 
 16.54  from the regional treatment center 
 16.55  supplements for state enhanced waiver 
 16.56  slots shall be transferred into the 
 16.57  regional treatment center salary 
 16.58  account. 
 16.59  [CONSUMER SATISFACTION SURVEY.] Any 
 16.60  federal matching money received through 
 16.61  the medical assistance program for the 
 16.62  consumer satisfaction survey is 
 16.63  appropriated to the commissioner for 
 16.64  this purpose.  The commissioner may 
 16.65  expend the federal money received for 
 16.66  the consumer satisfaction survey in 
 16.67  either year of the biennium. 
 17.1   [NURSING HOME GEOGRAPHIC GROUPS.] The 
 17.2   commissioner shall report to the chairs 
 17.3   of the senate health care and family 
 17.4   services finance division and the house 
 17.5   health and human services finance 
 17.6   division by January 15, 1996, with 
 17.7   recommendations for changes in the 
 17.8   current geographic grouping of nursing 
 17.9   homes.  The recommendations shall take 
 17.10  into account changes in the federal 
 17.11  definition of standard metropolitan 
 17.12  statistical areas and inequities that 
 17.13  result from the current groupings. 
 17.14  [LONG-TERM CARE OPTIONS PROJECT.] 
 17.15  Federal funds received by the 
 17.16  commissioner of human services for the 
 17.17  long-term care options project may be 
 17.18  transferred among object of expenditure 
 17.19  classifications as the commissioner 
 17.20  determines necessary for the 
 17.21  implementation of the project. 
 17.22  [MORATORIUM EXCEPTIONS.] Of this 
 17.23  appropriation, $200,000 each year is 
 17.24  for the medical assistance costs of 
 17.25  moratorium exceptions approved by the 
 17.26  commissioner of health under Minnesota 
 17.27  Statutes, section 144A.073. 
 17.28  [SURCHARGE COMPLIANCE.] In the event 
 17.29  that federal financial participation in 
 17.30  the Minnesota medical assistance 
 17.31  program is reduced as a result of a 
 17.32  determination that Minnesota is out of 
 17.33  compliance with Public Law Number 
 17.34  102-234 or its implementing regulations 
 17.35  or with any other federal law designed 
 17.36  to restrict provider tax programs or 
 17.37  intergovernmental transfers, the 
 17.38  commissioner shall appeal the 
 17.39  determination to the fullest extent 
 17.40  permitted by law and may ratably reduce 
 17.41  all medical assistance and general 
 17.42  assistance medical care payments to 
 17.43  providers other than the state of 
 17.44  Minnesota in order to eliminate any 
 17.45  shortfall resulting from the reduced 
 17.46  federal funding.  Any amount later 
 17.47  recovered through the appeals process 
 17.48  shall be used to reimburse providers 
 17.49  for any ratable reductions taken. 
 17.50  [MANAGED CARE.] The nonfederal share of 
 17.51  the Prepaid Medical Assistance Program 
 17.52  funds, which have been appropriated to 
 17.53  fund county managed care advocacy and 
 17.54  enrollment operating costs, shall be 
 17.55  disbursed as grants using either a 
 17.56  reimbursement or block grant mechanism. 
 17.57  [PMAP CARRYOVER.] Unexpended money 
 17.58  appropriated for fiscal year 1996 for 
 17.59  the nonfederal share of the prepaid 
 17.60  medical assistance program to fund 
 17.61  county managed care advocacy and 
 17.62  enrollment operating costs does not 
 17.63  cancel but is available in fiscal year 
 17.64  1997. 
 17.65  [PREPAID RATE DISCOUNTS.] 
 18.1   Notwithstanding section 12 of this 
 18.2   article, rates for rate years through 
 18.3   December 31, 1998, for the prepaid 
 18.4   medical assistance and prepaid general 
 18.5   assistance medical care programs shall, 
 18.6   in the aggregate for each program in 
 18.7   expansion counties after July 1, 1995, 
 18.8   include an effective ten percent 
 18.9   discount for individuals under 65, and 
 18.10  an effective five percent discount for 
 18.11  persons age 65 and older, compared with 
 18.12  expected fee-for-service costs for the 
 18.13  same population. 
 18.14  [COMPULSIVE GAMBLING.] (a) Of the 1995 
 18.15  appropriation for the compulsive 
 18.16  gambling program under Laws 1994, 
 18.17  chapter 633, article 8, section 8, 
 18.18  subdivision 1, up to $175,000 does not 
 18.19  cancel but shall remain available for 
 18.20  the development and implementation of 
 18.21  outcome evaluation, treatment 
 18.22  effectiveness research in the biennium 
 18.23  ending June 30, 1997. 
 18.24  (b) Only contributions to the 
 18.25  compulsive gambling program may be 
 18.26  carried forward between fiscal years or 
 18.27  from biennium to biennium. 
 18.28  (c) Paragraphs (a) and (b) are 
 18.29  effective the day following final 
 18.30  enactment. 
 18.31  Subd. 7.  Community Mental Health
 18.32  and State-Operated Services
 18.33  General 
 18.34     254,604,000    260,379,000
 18.35  The amounts that may be spent from this 
 18.36  appropriation for each purpose are as 
 18.37  follows: 
 18.38  (a) Mental Health Grants - Children
 18.39       7,097,000     12,536,000
 18.40  [MENTAL HEALTH COLLABORATIVE.] Mental 
 18.41  health grants available for children 
 18.42  formerly served under the TEFRA program 
 18.43  shall be distributed and administered 
 18.44  by a children's mental health 
 18.45  collaborative where a collaborative 
 18.46  exists. 
 18.47  (b) Mental Health Grants - Adults
 18.48      38,222,000     40,918,000
 18.49  (c) Residential Treatment
 18.50  Center Facilities
 18.51     194,921,000    192,265,000
 18.52  (d) Developmental Disability
 18.53  and Mentally Ill (DD and MI)
 18.54  State-Operated Community Services (SOCS)
 18.55      13,001,000     13,297,000
 19.1   (e) Administration and Other Grants
 19.2        1,363,000      1,363,000 
 19.3   [MENTAL HEALTH GRANTS.] (a) Mental 
 19.4   health grants appropriated for the 
 19.5   biennium as part of the TEFRA and PCA 
 19.6   restructuring proposal shall be 
 19.7   distributed to children's mental health 
 19.8   collaboratives, or where there is no 
 19.9   collaborative, to counties.  Grants 
 19.10  shall be prorated by county based on 
 19.11  the estimated dollar value of services 
 19.12  for children and adults with a mental 
 19.13  health diagnosis that will be lost due 
 19.14  to the changes in Minnesota Statutes, 
 19.15  sections 256B.055, subdivision 12, and 
 19.16  256B.0627. 
 19.17  (b) The commissioner shall form a work 
 19.18  group to recommend a process for 
 19.19  awarding grants that will maximize 
 19.20  services purchased and minimize 
 19.21  administrative overhead.  The task 
 19.22  force shall include representatives of 
 19.23  the state advisory council on mental 
 19.24  health and the children's subcommittee, 
 19.25  parents, consumers, advocacy groups, 
 19.26  providers, and local social service and 
 19.27  public health staff.  The work group 
 19.28  shall consider whether the process for 
 19.29  awarding consumer support grants under 
 19.30  Minnesota Statutes, section 256.476, 
 19.31  can be utilized for awarding these 
 19.32  mental health grants.  In addition, the 
 19.33  work group shall recommend ways to 
 19.34  minimize harm to children and families 
 19.35  and to reduce barriers to accessing 
 19.36  alternative services. 
 19.37  (c) For the first year of the biennium, 
 19.38  funds must be distributed by January 1, 
 19.39  1996, and for the second year, by July 
 19.40  1, 1996.  None of this appropriation 
 19.41  shall be used for county 
 19.42  administration, but must be used to 
 19.43  fund direct services to persons found 
 19.44  ineligible for TEFRA or PCA services. 
 19.45  [MENTAL HEALTH CASE MANAGEMENT.] 
 19.46  Notwithstanding section 12 of this 
 19.47  article, this paragraph does not 
 19.48  expire. The reimbursement rate for 
 19.49  mental health case management services 
 19.50  provided by counties under Minnesota 
 19.51  Statutes, sections 245.4881 and 
 19.52  256B.0625, for children with severe 
 19.53  emotional disturbance is $45. 
 19.54  [CALCULATION OF FTE's.] When 
 19.55  calculating regional treatment center 
 19.56  full-time equivalent employees, the 
 19.57  commissioner of finance shall make a 
 19.58  separate calculation for physicians and 
 19.59  their salaries. 
 19.60  [RELOCATIONS FROM FARIBAULT.] Of this 
 19.61  appropriation, $162,000 in fiscal year 
 19.62  1996 and $37,000 in fiscal year 1997 
 19.63  are for grants to counties for 
 19.64  discharge planning related to persons 
 20.1   with mental retardation or related 
 20.2   conditions being relocated from the 
 20.3   Faribault regional center to community 
 20.4   services. 
 20.5   [TRANSFERS TO MOOSE LAKE.] 
 20.6   Notwithstanding Minnesota Statutes, 
 20.7   sections 253B.18, subdivisions 4 and 6, 
 20.8   and 253B.185, subdivision 2, with the 
 20.9   establishment of the Minnesota sexual 
 20.10  psychopathic personality treatment 
 20.11  center, the commissioner is authorized 
 20.12  to transfer any person committed as a 
 20.13  psychopathic personality, sexual 
 20.14  psychopathic personality, or sexually 
 20.15  dangerous person, between the Minnesota 
 20.16  security hospital and the facility at 
 20.17  Moose Lake. 
 20.18  [RTC CHEMICAL DEPENDENCY PROGRAMS.] 
 20.19  When the operations of the regional 
 20.20  treatment center chemical dependency 
 20.21  fund created in Minnesota Statutes, 
 20.22  section 246.18, subdivision 2, are 
 20.23  impeded by projected cash deficiencies 
 20.24  resulting from delays in the receipt of 
 20.25  grants, dedicated income, or other 
 20.26  similar receivables, and when the 
 20.27  deficiencies would be corrected within 
 20.28  the budget period involved, the 
 20.29  commissioner of finance may transfer 
 20.30  general fund cash reserves into this 
 20.31  account as necessary to meet cash 
 20.32  demands.  The cash flow transfers must 
 20.33  be returned to the general fund in the 
 20.34  fiscal year that the transfer was 
 20.35  made.  Any interest earned on general 
 20.36  fund cash flow transfers accrues to the 
 20.37  general fund and not the regional 
 20.38  treatment center chemical dependency 
 20.39  fund. 
 20.40  [RTC RESTRUCTURING.] For purposes of 
 20.41  restructuring the regional treatment 
 20.42  centers and state nursing homes, any 
 20.43  regional treatment center or state 
 20.44  nursing home employee whose position is 
 20.45  to be eliminated shall be afforded the 
 20.46  options provided in applicable 
 20.47  collective bargaining agreements.  All 
 20.48  salary and mitigation allocations from 
 20.49  fiscal year 1996 shall be carried 
 20.50  forward into fiscal year 1997.  
 20.51  Provided there is no conflict with any 
 20.52  collective bargaining agreement, any 
 20.53  regional treatment center or state 
 20.54  nursing home position reduction must 
 20.55  only be accomplished through 
 20.56  mitigation, attrition, transfer, and 
 20.57  other measures as provided in state or 
 20.58  applicable collective bargaining 
 20.59  agreements and in Minnesota Statutes, 
 20.60  section 252.50, subdivision 11, and not 
 20.61  through layoff. 
 20.62  [RTC POPULATION.] If the resident 
 20.63  population at the regional treatment 
 20.64  centers is projected to be higher than 
 20.65  the estimates upon which the medical 
 20.66  assistance forecast and budget 
 20.67  recommendations for the 1996-97 
 21.1   biennium were based, the amount of the 
 21.2   medical assistance appropriation that 
 21.3   is attributable to the cost of services 
 21.4   that would have been provided as an 
 21.5   alternative to regional treatment 
 21.6   center services, including resources 
 21.7   for community placements and waivered 
 21.8   services for persons with mental 
 21.9   retardation and related conditions, is 
 21.10  transferred to the residential 
 21.11  facilities appropriation. 
 21.12  [INFRASTRUCTURE REINVESTMENT.] $750,000 
 21.13  is available from the public facilities 
 21.14  authority under Minnesota Statutes 
 21.15  446A.071 for grant funds to a local 
 21.16  unit of government for the development 
 21.17  of infrastructure and planning for 
 21.18  redevelopment in response to the 
 21.19  memorandum of understanding for the 
 21.20  regional treatment centers.  Eligible 
 21.21  costs include sewer, water, and 
 21.22  easements and engineering costs 
 21.23  associated with the project proposal. 
 21.24  [CAMP.] Of this appropriation, $30,000 
 21.25  is from the mental health special 
 21.26  projects account for adults and 
 21.27  children with mental illness from 
 21.28  across the state, for a camping program 
 21.29  which utilizes the Boundary Waters 
 21.30  Canoe Area and is cooperatively 
 21.31  sponsored by client advocacy, mental 
 21.32  health treatment, and outdoor 
 21.33  recreation agencies. 
 21.34  [IMD DOWNSIZING FLEXIBILITY.] If a 
 21.35  county presents a budget-neutral plan 
 21.36  for a net reduction in the number of 
 21.37  institution for mental disease (IMD) 
 21.38  beds funded under group residential 
 21.39  housing, the commissioner may transfer 
 21.40  the net savings from group residential 
 21.41  housing and general assistance medical 
 21.42  care to medical assistance and mental 
 21.43  health grants to provide appropriate 
 21.44  services in non-IMD settings. 
 21.45  [REPAIRS AND BETTERMENTS.] The 
 21.46  commissioner may transfer unencumbered 
 21.47  appropriation balances between fiscal 
 21.48  years for the state residential 
 21.49  facilities repairs and betterments 
 21.50  account and special equipment. 
 21.51  [PROJECT LABOR.] Wages for project 
 21.52  labor may be paid by the commissioner 
 21.53  of human services out of repairs and 
 21.54  betterments money if the individual is 
 21.55  to be engaged in a construction project 
 21.56  or a repair project of short term and 
 21.57  nonrecurring nature.  Compensation for 
 21.58  project labor shall be based on the 
 21.59  prevailing wage rates, as defined in 
 21.60  Minnesota Statutes, section 177.42, 
 21.61  subdivision 6.  Project laborers are 
 21.62  excluded from the provisions of 
 21.63  Minnesota Statutes, sections 43A.22 to 
 21.64  43A.30, and shall not be eligible for 
 21.65  state-paid insurance and benefits. 
 22.1   [PLAN FOR ADOLESCENT TREATMENT 
 22.2   EXPANSION.] The commissioner shall 
 22.3   report to the legislature by January 
 22.4   15, 1996, with a cost-neutral plan to 
 22.5   add up to 20 beds to each of the two 
 22.6   existing adolescent treatment 
 22.7   facilities at the regional treatment 
 22.8   centers in order to reduce or eliminate 
 22.9   out-of-state placement of adolescents 
 22.10  who have serious emotional disturbance 
 22.11  and exhibit violent behavior, if they 
 22.12  cannot be treated in their own 
 22.13  communities.  Cost neutrality shall be 
 22.14  determined by comparing the costs of 
 22.15  program expansion with the projected 
 22.16  costs of out-of-state placements. 
 22.17  Sec. 3.  COMMISSIONER OF HEALTH 
 22.18  Subdivision 1.  Total 
 22.19  Appropriation                         55,639,000     55,886,000
 22.20                Summary by Fund
 22.21  General              37,978,000    37,950,000
 22.22  Metropolitan Landfill
 22.23  Contingency Action Fund 193,000       193,000
 22.24  State Government
 22.25  Special Revenue      15,947,000    16,222,000
 22.26  Trunk Highway         1,513,000     1,513,000
 22.27  Special Revenue           8,000         8,000
 22.28  [LANDFILL CONTINGENCY.] The 
 22.29  appropriation from the metropolitan 
 22.30  landfill contingency action fund is for 
 22.31  monitoring well water supplies and 
 22.32  conducting health assessments in the 
 22.33  metropolitan area. 
 22.34  [TRUNK HIGHWAY FUND.] The appropriation 
 22.35  from the trunk highway fund is for 
 22.36  emergency medical services activities. 
 22.37  Subd. 2.  Health
 22.38  Systems Development                   27,928,000     27,784,000
 22.39                Summary by Fund
 22.40  General              27,499,000    27,354,000
 22.41  State Government
 22.42  Special Revenue         429,000       430,000
 22.43  [WIC TRANSFERS.] General fund 
 22.44  appropriations for the women, infants, 
 22.45  and children food supplement program 
 22.46  (WIC) are available for either year of 
 22.47  the biennium.  Transfers of 
 22.48  appropriations between fiscal years 
 22.49  must be for the purpose of maximizing 
 22.50  federal funds or minimizing 
 22.51  fluctuations in the number of 
 22.52  participants.  
 22.53  [NURSING HOME RESIDENTS EDUCATION.] Any 
 22.54  efforts undertaken by the Minnesota 
 22.55  departments of health or human services 
 23.1   to conduct periodic education programs 
 23.2   for nursing home residents shall build 
 23.3   on and be coordinated with the resident 
 23.4   and family advisory council education 
 23.5   program established in Minnesota 
 23.6   Statutes, section 144A.33. 
 23.7   [HOSPITAL CONVERSION.] Of the 
 23.8   appropriation from the general fund, 
 23.9   the commissioner of health shall 
 23.10  provide $25,000 to a 28-bed hospital 
 23.11  located in Chisago county, to enable 
 23.12  that facility to plan for closure and 
 23.13  conversion, in partnership with other 
 23.14  entities, in order to offer outpatient 
 23.15  and emergency services at the site. 
 23.16  [CARRYOVER.] General fund 
 23.17  appropriations for treatment services 
 23.18  in the services for children with 
 23.19  special health care needs program are 
 23.20  available for either year of the 
 23.21  biennium. 
 23.22  Subd. 3.  Health Quality
 23.23  Assurance                              6,934,000      7,065,000
 23.24                Summary by Fund
 23.25  General               1,135,000     1,135,000
 23.26  Trunk Highway         1,431,000     1,431,000
 23.27  State Government 
 23.28  Special Revenue       4,368,000     4,499,000
 23.29  [NONCERTIFIED NURSING HOME.] Of the 
 23.30  appropriation from the state government 
 23.31  special revenue fund, up to $250,000 is 
 23.32  available if the commissioner 
 23.33  determines the need to place a 
 23.34  noncertified nursing home into 
 23.35  receivership under Minnesota Statutes, 
 23.36  section 144A.14 or 144A.15.  Any money 
 23.37  expended from this account for this 
 23.38  purpose shall only be used to cover the 
 23.39  necessary costs for the receivership 
 23.40  and for the operation of the facility 
 23.41  during the time period necessary to 
 23.42  relocate residents from the facility.  
 23.43  The commissioner shall suspend 
 23.44  admissions to the nursing home 
 23.45  effective as of the date of the 
 23.46  commencement of the receivership. 
 23.47  Notwithstanding the provisions of 
 23.48  Minnesota Statutes, section 144A.16, 
 23.49  and Minnesota Rules, parts 4655.6810 to 
 23.50  4655.6830, the commissioner shall 
 23.51  relocate residents within 45 days from 
 23.52  the commencement of the receivership if 
 23.53  the receivership costs are covered by 
 23.54  this section.  Once relocation of the 
 23.55  residents is completed, the nursing 
 23.56  home license shall expire.  
 23.57  Notwithstanding the provisions of 
 23.58  Minnesota Statutes, section 144A.071, 
 23.59  subdivision 3, paragraph (c), the 
 23.60  commissioner may issue a new license to 
 23.61  operate the facility as a nursing home 
 23.62  within 120 days from the commencement 
 23.63  of the receivership provided that the 
 24.1   licensed and certified capacity does 
 24.2   not exceed the capacity of the former 
 24.3   facility and all money expended from 
 24.4   the state government special revenue 
 24.5   account is repaid to the commissioner 
 24.6   prior to the issuance of the license.  
 24.7   Any unrecovered costs to the fund shall 
 24.8   be included as costs to the activity 
 24.9   under Minnesota Statutes, section 
 24.10  16A.1285.  The commissioner shall 
 24.11  report any use of this authority to the 
 24.12  commissioner of finance and the chair 
 24.13  of the senate health care and family 
 24.14  services finance division and the chair 
 24.15  of the house human services finance 
 24.16  division. 
 24.17  Subd. 4.  Health Protection           16,765,000     16,861,000
 24.18                Summary by Fund
 24.19  General               6,899,000     6,895,000
 24.20  State Government
 24.21  Special Revenue       9,687,000     9,787,000
 24.22  Metropolitan Landfill
 24.23  Contingency Action
 24.24  Fund                    171,000       171,000
 24.25  Special Revenue           8,000         8,000
 24.26  [LEAD ABATEMENT.] $200,000 is 
 24.27  appropriated from the general fund to 
 24.28  the commissioner of health for the 
 24.29  biennium ending June 30, 1997, for the 
 24.30  purpose of administering lead abatement 
 24.31  activities.  Of this amount, $25,000 
 24.32  shall be used for the purposes of 
 24.33  lead-safe housing, and $25,000 shall be 
 24.34  used for the purposes of lead cleanup 
 24.35  equipment. 
 24.36  Subd. 5.  Management and
 24.37  Support Services                       4,012,000      4,176,000
 24.38                Summary by Fund
 24.39  General               2,445,000     2,566,000
 24.40  Metropolitan Landfill
 24.41  Contingency Action Fund  22,000        22,000
 24.42  Trunk Highway            82,000        82,000
 24.43  State Government
 24.44  Special Revenue       1,463,000     1,506,000
 24.45  Sec. 4.  VETERANS NURSING
 24.46  HOMES BOARD                           17,937,000     18,614,000
 24.47  [SPECIAL REVENUE ACCOUNT.] The general 
 24.48  fund appropriations made to the 
 24.49  veterans homes board shall be 
 24.50  transferred to a veterans homes special 
 24.51  revenue account in the special revenue 
 24.52  fund in the same manner as other 
 24.53  receipts are deposited in accordance 
 24.54  with Minnesota Statutes, section 
 24.55  198.34, and are appropriated to the 
 24.56  veterans homes board of directors for 
 25.1   the operation of board facilities and 
 25.2   programs. 
 25.3   [SETTING THE COST OF CARE.] The 
 25.4   veterans homes board may set the cost 
 25.5   of care at the Silver Bay and Luverne 
 25.6   facilities based on the cost of average 
 25.7   skilled nursing care provided to 
 25.8   residents of the Minneapolis veterans 
 25.9   home for fiscal year 1996. 
 25.10  [ROOMS WITH MORE THAN FOUR BEDS.] (a) 
 25.11  Until June 30, 1996, the commissioner 
 25.12  of health shall not apply the 
 25.13  provisions of Minnesota Statutes, 
 25.14  section 144.55, subdivision 6, 
 25.15  paragraph (b), to the Minnesota 
 25.16  veterans home at Hastings. 
 25.17  (b) The veterans homes board may not 
 25.18  admit residents into the domiciliary 
 25.19  beds at the Minnesota veterans home at 
 25.20  Hastings before October 1, 1995. 
 25.21  [LICENSED CAPACITY.] The department of 
 25.22  health shall not reduce the licensed 
 25.23  bed capacity for the Minneapolis 
 25.24  veterans home pending completion of the 
 25.25  project authorized by Laws 1990, 
 25.26  chapter 610, article 1, section 9, 
 25.27  subdivision 3, unless the federal grant 
 25.28  for the project is not awarded. 
 25.29  [ALLOWANCE FOR FOOD.] The allowance for 
 25.30  food may be adjusted annually to 
 25.31  reflect changes in the producer price 
 25.32  index, as prepared by the United States 
 25.33  Bureau of Labor Statistics, with the 
 25.34  approval of the commissioner of 
 25.35  finance.  Adjustments for fiscal year 
 25.36  1996 and fiscal year 1997 must be based 
 25.37  on the June 1994 and June 1995 producer 
 25.38  price index respectively, but the 
 25.39  adjustment must be prorated if it would 
 25.40  require money in excess of the 
 25.41  appropriation. 
 25.42  [FERGUS FALLS.] If a federal grant for 
 25.43  the construction of the Fergus Falls 
 25.44  veterans home is received before the 
 25.45  start of the 1996 legislative session, 
 25.46  the veterans homes board of directors 
 25.47  may use up to $150,000 of this 
 25.48  appropriation to fund positions and 
 25.49  support services to coordinate and 
 25.50  oversee the construction of the home 
 25.51  and to begin planning for the opening 
 25.52  of the facility. 
 25.53  Sec. 5.  HEALTH-RELATED BOARDS 
 25.54  Subdivision 1.  Total     
 25.55  Appropriation                          8,906,000      8,608,000 
 25.56  [STATE GOVERNMENT SPECIAL REVENUE 
 25.57  FUND.] The appropriations in this 
 25.58  section are from the state government 
 25.59  special revenue fund. 
 25.60  [NO SPENDING IN EXCESS OF REVENUES.] 
 25.61  The commissioner of finance shall not 
 26.1   permit the allotment, encumbrance, or 
 26.2   expenditure of money appropriated in 
 26.3   this section in excess of the 
 26.4   anticipated biennial revenues or 
 26.5   accumulated surplus revenues from fees 
 26.6   collected by the boards.  Neither this 
 26.7   provision nor Minnesota Statutes, 
 26.8   section 214.06, applies to transfers 
 26.9   from the general contingent account, if 
 26.10  the amount transferred does not exceed 
 26.11  the amount of surplus revenue 
 26.12  accumulated by the transferee during 
 26.13  the previous five years. 
 26.14  Subd. 2.  Board of Chiropractic 
 26.15  Examiners                                309,000        313,000
 26.16  Subd. 3.  Board of Dentistry             698,000        708,000
 26.17  Subd. 4.  Board of Dietetic
 26.18  and Nutrition Practice                    63,000         64,000
 26.19  Subd. 5.  Board of Marriage and 
 26.20  Family Therapy                            95,000         96,000
 26.21  Subd. 6.  Board of Medical  
 26.22  Practice                               3,204,000      3,188,000
 26.23  Subd. 7.  Board of Nursing             2,258,000      2,009,000
 26.24  [DISCIPLINE AND LICENSING SYSTEMS 
 26.25  PROJECT.] Of this appropriation, 
 26.26  $548,000 the first year and $295,000 
 26.27  the second year is to implement the 
 26.28  discipline and licensing systems 
 26.29  project as recommended by the 
 26.30  information policy office.  In 
 26.31  accordance with Minnesota Statutes, 
 26.32  section 214.06, subdivision 1, the 
 26.33  board may raise fees to fund this 
 26.34  activity. 
 26.35  Subd. 8.  Board of Nursing 
 26.36  Home Administrators                      182,000        186,000
 26.37  Subd. 9.  Board of Optometry              78,000         79,000
 26.38  Subd. 10.  Board of Pharmacy             900,000        894,000
 26.39  Subd. 11.  Board of Podiatry              31,000         32,000
 26.40  Subd. 12.  Board of Psychology           393,000        396,000
 26.41  Subd. 13.  Board of Social Work          553,000        492,000
 26.42  Subd. 14.  Board of Veterinary 
 26.43  Medicine                                 142,000        151,000
 26.44  Sec. 6.  COUNCIL ON DISABILITY           725,000        581,000
 26.45  [COUNCIL ON DISABILITY.] Of this 
 26.46  appropriation $150,000 is from the 
 26.47  general fund to the council on 
 26.48  disability for fiscal year 1996, for 
 26.49  the purposes of a matching grant to the 
 26.50  Fergus Falls Center for the Arts, Inc. 
 26.51  to complete renovations of a local 
 26.52  theater necessary to bring it into 
 26.53  compliance with the federal Americans 
 26.54  with Disabilities Act.  This 
 26.55  appropriation must be matched by 
 27.1   $50,000 of nonstate local funds. 
 27.2   Sec. 7.  OMBUDSMAN FOR MENTAL 
 27.3   HEALTH AND MENTAL RETARDATION          1,132,000      1,097,000
 27.4   Sec. 8.  OMBUDSMAN
 27.5   FOR FAMILIES                             133,000        137,000
 27.6   Sec. 9.  TRANSFERS. 
 27.7   Subdivision 1.  Entitlement programs
 27.8   (a) Transfers in fiscal year 1995 
 27.9   Effective the day following final 
 27.10  enactment, the commissioner of human 
 27.11  services may transfer unencumbered 
 27.12  appropriation balances for fiscal year 
 27.13  1995 among the aid to families with 
 27.14  dependent children, aid to families 
 27.15  with dependent children child care, 
 27.16  Minnesota family investment plan, 
 27.17  general assistance, general assistance 
 27.18  medical care, medical assistance, 
 27.19  Minnesota supplemental aid, group 
 27.20  residential housing and work readiness 
 27.21  programs, and the entitlement portion 
 27.22  of the chemical dependency consolidated 
 27.23  treatment fund, with the approval of 
 27.24  the commissioner of finance after 
 27.25  notification of the chair of the senate 
 27.26  health care and family services finance 
 27.27  division and the chair of the house of 
 27.28  representatives health and human 
 27.29  services finance division. 
 27.30  (b) Transfers of unencumbered 
 27.31  entitled grant and aid appropriations 
 27.32  The commissioner of human services, 
 27.33  with the approval of the commissioner 
 27.34  of finance, and after notification of 
 27.35  the chair of the senate health care and 
 27.36  family services finance division and 
 27.37  the chair of the house of 
 27.38  representatives health and human 
 27.39  services finance division, may transfer 
 27.40  unencumbered appropriation balances for 
 27.41  the biennium ending June 30, 1997, 
 27.42  within fiscal years among the aid to 
 27.43  families with dependent children, aid 
 27.44  to families with dependent children 
 27.45  child care, Minnesota family investment 
 27.46  plan, general assistance, general 
 27.47  assistance medical care, medical 
 27.48  assistance, Minnesota supplemental aid, 
 27.49  group residential housing, and work 
 27.50  readiness programs, and the entitlement 
 27.51  portion of the chemical dependency 
 27.52  consolidated treatment fund, and 
 27.53  between fiscal years of the biennium. 
 27.54  Subd. 2.  Approval required 
 27.55  Positions, salary money, and nonsalary 
 27.56  administrative money may be transferred 
 27.57  within the departments of human 
 27.58  services and health and within the 
 27.59  programs operated by the veterans 
 27.60  nursing homes board as the 
 27.61  commissioners and the board consider 
 28.1   necessary, with the advance approval of 
 28.2   the commissioner of finance.  The 
 28.3   commissioners and the board shall 
 28.4   inform the chairs of the health and 
 28.5   human services finance division of the 
 28.6   house of representatives and the health 
 28.7   and family services finance division of 
 28.8   the senate quarterly about transfers 
 28.9   made under this provision. 
 28.10  Subd. 3.  Transfer 
 28.11  Funding appropriated by the legislature 
 28.12  may not be transferred to a different 
 28.13  department than that specified by the 
 28.14  legislature without legislative 
 28.15  authority. 
 28.16  Sec. 10.  PROVISIONS 
 28.17  (a) Money appropriated to the 
 28.18  commissioner of human services for the 
 28.19  purchase of provisions within the item 
 28.20  "current expense" must be used solely 
 28.21  for that purpose.  Money provided and 
 28.22  not used for the purchase of provisions 
 28.23  must be canceled into the fund from 
 28.24  which appropriated, except that money 
 28.25  provided and not used for the purchase 
 28.26  of provisions because of population 
 28.27  decreases may be transferred and used 
 28.28  for the purchase of drugs and medical 
 28.29  and hospital supplies and equipment 
 28.30  with written approval of the governor 
 28.31  after consultation with the legislative 
 28.32  advisory commission. 
 28.33  (b) For fiscal year 1996 the allowance 
 28.34  for food may be adjusted to the 
 28.35  equivalent of the 75th percentile of 
 28.36  the comparable raw food costs for 
 28.37  community nursing homes as reported to 
 28.38  the commissioner of human services.  
 28.39  For fiscal year 1997 an adjustment may 
 28.40  be made to reflect the annual change in 
 28.41  the United States Bureau of Labor 
 28.42  Statistics producer price index as of 
 28.43  June 1996 with the approval of the 
 28.44  commissioner of finance.  The 
 28.45  adjustments for either year must be 
 28.46  prorated if they would require money in 
 28.47  excess of this appropriation. 
 28.48  Sec. 11.  CARRYOVER LIMITATION 
 28.49  None of the appropriations in this act 
 28.50  which are allowed to be carried forward 
 28.51  from fiscal year 1996 to fiscal year 
 28.52  1997 shall become part of the base 
 28.53  level funding for the 1997-1999 
 28.54  biennial budget, unless specifically 
 28.55  directed by the legislature. 
 28.56  Sec. 12.  SUNSET OF UNCODIFIED LANGUAGE 
 28.57  All uncodified language contained in 
 28.58  this article expires on June 30, 1997, 
 28.59  unless a different expiration is 
 28.60  explicit. 
 28.61                             ARTICLE 2
 29.1                    HUMAN SERVICES ADMINISTRATION 
 29.2      Section 1.  Minnesota Statutes 1994, section 14.03, 
 29.3   subdivision 3, is amended to read: 
 29.4      Subd. 3.  [RULEMAKING PROCEDURES.] The definition of a rule 
 29.5   in section 14.02, subdivision 4, does not include: 
 29.6      (1) rules concerning only the internal management of the 
 29.7   agency or other agencies that do not directly affect the rights 
 29.8   of or procedures available to the public; 
 29.9      (2) rules of the commissioner of corrections relating to 
 29.10  the placement and supervision of inmates serving a supervised 
 29.11  release term, the internal management of institutions under the 
 29.12  commissioner's control, and rules adopted under section 609.105 
 29.13  governing the inmates of those institutions; 
 29.14     (3) rules relating to weight limitations on the use of 
 29.15  highways when the substance of the rules is indicated to the 
 29.16  public by means of signs; 
 29.17     (4) opinions of the attorney general; 
 29.18     (5) the systems architecture plan and long-range plan of 
 29.19  the state education management information system provided by 
 29.20  section 121.931; 
 29.21     (6) the data element dictionary and the annual data 
 29.22  acquisition calendar of the department of education to the 
 29.23  extent provided by section 121.932; 
 29.24     (7) the occupational safety and health standards provided 
 29.25  in section 182.655; 
 29.26     (8) revenue notices and tax information bulletins of the 
 29.27  commissioner of revenue; or 
 29.28     (9) uniform conveyancing forms adopted by the commissioner 
 29.29  of commerce under section 507.09; or 
 29.30     (10) the interpretive guidelines developed by the 
 29.31  commissioner of human services to the extent provided in chapter 
 29.32  245A. 
 29.33     Sec. 2.  Minnesota Statutes 1994, section 16B.08, 
 29.34  subdivision 5, is amended to read: 
 29.35     Subd. 5.  [FEDERAL GENERAL SERVICES ADMINISTRATION AGENCY 
 29.36  PRICE SCHEDULES.] Notwithstanding anything in this chapter to 
 30.1   the contrary, the commissioner may, instead of soliciting bids, 
 30.2   contract for purchases with suppliers who have published 
 30.3   schedules of prices effective for sales to the General Services 
 30.4   Administration any federal agency of the United States.  These 
 30.5   contracts may be entered into, regardless of the amount of the 
 30.6   purchase price, if the commissioner considers them advantageous 
 30.7   and if the purchase price of all the commodities purchased under 
 30.8   the contract do not exceed the price specified by the schedule.  
 30.9      Sec. 3.  Minnesota Statutes 1994, section 171.07, is 
 30.10  amended by adding a subdivision to read: 
 30.11     Subd. 10.  [AGREEMENTS WITH OTHER AGENCIES.] The 
 30.12  commissioner of public safety is authorized to enter into 
 30.13  agreements with other agencies to issue cards to clients of 
 30.14  those agencies for use in their programs.  The cards may be 
 30.15  issued to persons who do not qualify for a Minnesota driver's 
 30.16  license or do not provide evidence of name and identity as 
 30.17  required by rule for a Minnesota identification card.  Persons 
 30.18  issued cards under this subdivision will meet the identification 
 30.19  verification requirements of the contracting agency. 
 30.20     The interagency agreement may include provisions for the 
 30.21  payment of the county fee provided in section 171.06, 
 30.22  subdivision 4, and the actual cost to manufacture the card. 
 30.23     Cards issued under this subdivision are not Minnesota 
 30.24  identification cards for the purposes defined in sections 
 30.25  48.512, 201.061, 201.161, 332.50, and 340A.503. 
 30.26     Sec. 4.  Minnesota Statutes 1994, section 245A.02, is 
 30.27  amended by adding a subdivision to read: 
 30.28     Subd. 7b.  [INTERPRETIVE GUIDELINES.] "Interpretive 
 30.29  guidelines" means a policy statement that has been published 
 30.30  pursuant to section 245A.09, subdivision 12, and which provides 
 30.31  interpretation, details, or supplementary information concerning 
 30.32  the application of laws or rules.  Interpretive guidelines are 
 30.33  published for the information and guidance of consumers, 
 30.34  providers of service, county agencies, the department of human 
 30.35  services, and others concerned. 
 30.36     Sec. 5.  Minnesota Statutes 1994, section 245A.03, 
 31.1   subdivision 2a, is amended to read: 
 31.2      Subd. 2a.  [LICENSING OF FOSTER CARE BY AN INDIVIDUAL WHO 
 31.3   IS RELATED TO A CHILD; LICENSE REQUIRED.] Notwithstanding 
 31.4   subdivision 2, clause (1), the commissioner must license or 
 31.5   approve an individual who is related to a child in order to 
 31.6   provide foster care for that a child, an individual who is 
 31.7   related to the child, other than a parent, or legal guardian, 
 31.8   must be licensed by the commissioner except as provided by 
 31.9   section 245A.035.  The commissioner may issue the license or 
 31.10  approval retroactive to the date the child was placed in the 
 31.11  applicant's home, so long as no more than 90 days have elapsed 
 31.12  since the placement.  If more than 90 days have elapsed since 
 31.13  the placement, the commissioner may issue the license or 
 31.14  approval retroactive 90 days.  The granting of a license or 
 31.15  approval to an individual who is related to a child shall be 
 31.16  according to standards set forth by foster care rule.  The 
 31.17  commissioner shall consider the importance of maintaining the 
 31.18  child's relationship to family as an additional significant 
 31.19  factor in determining whether to set aside a licensing 
 31.20  disqualifier under section 245A.04, subdivision 3b, or to grant 
 31.21  a variance of licensing requirements under section 245A.04, 
 31.22  subdivision 9, in licensing or approving an individual related 
 31.23  to a child. 
 31.24     Sec. 6.  [245A.035] [RELATIVE FOSTER CARE; EMERGENCY 
 31.25  LICENSE.] 
 31.26     Subdivision 1.  [GRANT OF EMERGENCY LICENSE.] 
 31.27  Notwithstanding section 245A.03, subdivision 2a, a county agency 
 31.28  may place a child for foster care with a relative who is not 
 31.29  licensed to provide foster care, provided the requirements of 
 31.30  subdivision 2 are met.  As used in this section, the term 
 31.31  "relative" has the meaning given it under section 260.181, 
 31.32  subdivision 3. 
 31.33     Subd. 2.  [COOPERATION WITH EMERGENCY LICENSING PROCESS.] 
 31.34  (a) A county agency that places a child with a relative who is 
 31.35  not licensed to provide foster care must begin the process of 
 31.36  securing an emergency license for the relative as soon as 
 32.1   possible and must conduct the initial inspection required by 
 32.2   subdivision 3, clause (1), whenever possible, prior to placing 
 32.3   the child in the relative's home, but no later than three 
 32.4   working days after placing the child in the home.  A child 
 32.5   placed in the home of a relative who is not licensed to provide 
 32.6   foster care must be removed from that home if the relative fails 
 32.7   to cooperate with the county agency in securing an emergency 
 32.8   foster care license.  The commissioner may only issue an 
 32.9   emergency foster care license to a relative with whom the county 
 32.10  agency wishes to place or has placed a child for foster care. 
 32.11     (b) If a child is to be placed in the home of a relative 
 32.12  not licensed to provide foster care, either the placing agency 
 32.13  or the county agency in the county in which the relative lives 
 32.14  shall conduct the emergency licensing process as required in 
 32.15  this section. 
 32.16     Subd. 3.  [REQUIREMENTS FOR EMERGENCY LICENSE.] Before an 
 32.17  emergency license may be issued, the following requirements must 
 32.18  be met: 
 32.19     (1) the county agency must conduct an initial inspection of 
 32.20  the premises where the foster care is to be provided to ensure 
 32.21  the health and safety of any child placed in the home.  The 
 32.22  county agency shall conduct the inspection using a form 
 32.23  developed by the commissioner; 
 32.24     (2) at the time of the inspection or placement, whichever 
 32.25  is earlier, the relative being considered for an emergency 
 32.26  license shall receive an application form for a child foster 
 32.27  care license; and 
 32.28     (3) whenever possible, prior to placing the child in the 
 32.29  relative's home, the relative being considered for an emergency 
 32.30  license shall provide the information required by section 
 32.31  245A.04, subdivision 3, paragraph (b). 
 32.32     Subd. 4.  [APPLICANT STUDY.] When the county agency has 
 32.33  received the information required by section 245A.04, 
 32.34  subdivision 3, paragraph (b), the county agency shall begin an 
 32.35  applicant study according to the procedures in section 245A.04, 
 32.36  subdivision 3.  The commissioner may issue an emergency license 
 33.1   upon recommendation of the county agency once the initial 
 33.2   inspection has been successfully completed and the information 
 33.3   necessary to begin the applicant background study has been 
 33.4   provided.  If the county agency does not recommend that the 
 33.5   emergency license be granted, the agency shall notify the 
 33.6   relative in writing that the agency is recommending denial to 
 33.7   the commissioner; shall remove any child who has been placed in 
 33.8   the home prior to licensure; and shall inform the relative in 
 33.9   writing of the procedure to request review pursuant to 
 33.10  subdivision 6.  An emergency license shall be effective until a 
 33.11  child foster care license is granted or denied, but shall in no 
 33.12  case remain in effect more than 90 days from the date of 
 33.13  placement. 
 33.14     Subd. 5.  [CHILD FOSTER CARE LICENSE APPLICATION.] The 
 33.15  emergency license holder shall complete the child foster care 
 33.16  license application and necessary paperwork within ten days of 
 33.17  the placement.  The county agency shall assist the emergency 
 33.18  license holder to complete the application.  The granting of a 
 33.19  child foster care license to a relative shall be under the 
 33.20  procedures in this chapter and according to the standards set 
 33.21  forth by foster care rule.  In licensing a relative, the 
 33.22  commissioner shall consider the importance of maintaining the 
 33.23  child's relationship with relatives as an additional significant 
 33.24  factor in determining whether to set aside a licensing 
 33.25  disqualifier under section 245A.04, subdivision 3b, or to grant 
 33.26  a variance of licensing requirements under section 245A.04, 
 33.27  subdivision 9. 
 33.28     Subd. 6.  [DENIAL OF EMERGENCY LICENSE.] If the 
 33.29  commissioner denies an application for an emergency foster care 
 33.30  license under this section, that denial must be in writing and 
 33.31  must include reasons for the denial.  Denial of an emergency 
 33.32  license is not subject to appeal under chapter 14.  The relative 
 33.33  may request a review of the denial by submitting to the 
 33.34  commissioner a written statement of the reasons an emergency 
 33.35  license should be granted.  The commissioner shall evaluate the 
 33.36  request for review and determine whether to grant the emergency 
 34.1   license.  The commissioner's review shall be based on a review 
 34.2   of the records submitted by the county agency and the relative.  
 34.3   Within 15 working days of the receipt of the request for review, 
 34.4   the commissioner shall notify the relative requesting review in 
 34.5   written form whether the emergency license will be granted.  The 
 34.6   commissioner's review shall be based on a review of the records 
 34.7   submitted by the county agency and the relative.  A child shall 
 34.8   not be placed or remain placed in the relative's home while the 
 34.9   request for review is pending.  Denial of an emergency license 
 34.10  shall not preclude an individual from reapplying for an 
 34.11  emergency license or from applying for a child foster care 
 34.12  license.  The decision of the commissioner is the final 
 34.13  administrative agency action.  
 34.14     Sec. 7.  Minnesota Statutes 1994, section 245A.04, 
 34.15  subdivision 3, is amended to read: 
 34.16     Subd. 3.  [STUDY OF THE APPLICANT.] (a) Before the 
 34.17  commissioner issues a license, the commissioner shall conduct a 
 34.18  study of the individuals specified in clauses (1) to (4) 
 34.19  according to rules of the commissioner.  The applicant, license 
 34.20  holder, the bureau of criminal apprehension, and county 
 34.21  agencies, after written notice to the individual who is the 
 34.22  subject of the study, shall help with the study by giving the 
 34.23  commissioner criminal conviction data and reports about abuse or 
 34.24  neglect of adults in licensed programs substantiated under 
 34.25  section 626.557 and the maltreatment of minors in licensed 
 34.26  programs substantiated under section 626.556.  The individuals 
 34.27  to be studied shall include: 
 34.28     (1) the applicant; 
 34.29     (2) persons over the age of 13 living in the household 
 34.30  where the licensed program will be provided; 
 34.31     (3) current employees or contractors of the applicant who 
 34.32  will have direct contact with persons served by the program; and 
 34.33     (4) volunteers who have direct contact with persons served 
 34.34  by the program to provide program services, if the contact is 
 34.35  not directly supervised by the individuals listed in clause (1) 
 34.36  or (3). 
 35.1      The juvenile courts shall also help with the study by 
 35.2   giving the commissioner existing juvenile court records on 
 35.3   individuals described in clause (2) relating to delinquency 
 35.4   proceedings held within either the five years immediately 
 35.5   preceding the application or the five years immediately 
 35.6   preceding the individual's 18th birthday, whichever time period 
 35.7   is longer.  The commissioner shall destroy juvenile records 
 35.8   obtained pursuant to this subdivision when the subject of the 
 35.9   records reaches age 23.  
 35.10     For purposes of this section and Minnesota Rules, part 
 35.11  9543.3070, a finding that a delinquency petition is proven in 
 35.12  juvenile court shall be considered a conviction in state 
 35.13  district court. 
 35.14     For purposes of this subdivision, "direct contact" means 
 35.15  providing face-to-face care, training, supervision, counseling, 
 35.16  consultation, or medication assistance to persons served by a 
 35.17  program.  For purposes of this subdivision, "directly supervised"
 35.18  means an individual listed in clause (1) or (3) is within sight 
 35.19  or hearing of a volunteer to the extent that the individual 
 35.20  listed in clause (1) or (3) is capable at all times of 
 35.21  intervening to protect the health and safety of the persons 
 35.22  served by the program who have direct contact with the volunteer.
 35.23     A study of an individual in clauses (1) to (4) shall be 
 35.24  conducted at least upon application for initial license and 
 35.25  reapplication for a license.  No applicant, license holder, or 
 35.26  individual who is the subject of the study shall pay any fees 
 35.27  required to conduct the study.  
 35.28     (b) The individual who is the subject of the study must 
 35.29  provide the applicant or license holder with sufficient 
 35.30  information to ensure an accurate study including the 
 35.31  individual's first, middle, and last name; home address, city, 
 35.32  county, and state of residence; zip code; sex; date of birth; 
 35.33  and driver's license number.  The applicant or license holder 
 35.34  shall provide this information about an individual in paragraph 
 35.35  (a), clauses (1) to (4), on forms prescribed by the 
 35.36  commissioner.  The commissioner may request additional 
 36.1   information of the individual, which shall be optional for the 
 36.2   individual to provide, such as the individual's social security 
 36.3   number or race. 
 36.4      (c) Except for child foster care, adult foster care, and 
 36.5   family day care homes, a study must include information from the 
 36.6   county agency's record of substantiated abuse or neglect of 
 36.7   adults in licensed programs, and the maltreatment of minors in 
 36.8   licensed programs, information from juvenile courts as required 
 36.9   in paragraph (a) for persons listed in paragraph (a), clause 
 36.10  (2), and information from the bureau of criminal apprehension.  
 36.11  For child foster care, adult foster care, and family day care 
 36.12  homes, the study must include information from the county 
 36.13  agency's record of substantiated abuse or neglect of adults, and 
 36.14  the maltreatment of minors, information from juvenile courts as 
 36.15  required in paragraph (a) for persons listed in paragraph (a), 
 36.16  clause (2), and information from the bureau of criminal 
 36.17  apprehension.  The commissioner may also review arrest and 
 36.18  investigative information from the bureau of criminal 
 36.19  apprehension, a county attorney, county sheriff, county agency, 
 36.20  local chief of police, other states, the courts, or a national 
 36.21  criminal record repository if the commissioner has reasonable 
 36.22  cause to believe the information is pertinent to the 
 36.23  disqualification of an individual listed in paragraph (a), 
 36.24  clauses (1) to (4).  The commissioner is not required to conduct 
 36.25  more than one review of a subject's records from the national 
 36.26  criminal record repository if a review of the subject's criminal 
 36.27  history with the national criminal record repository has already 
 36.28  been completed by the commissioner and there has been no break 
 36.29  in the subject's affiliation with the license holder who 
 36.30  initiated the background studies. 
 36.31     (d) An applicant's or license holder's failure or refusal 
 36.32  to cooperate with the commissioner is reasonable cause to deny 
 36.33  an application or immediately suspend, suspend, or revoke a 
 36.34  license.  Failure or refusal of an individual to cooperate with 
 36.35  the study is just cause for denying or terminating employment of 
 36.36  the individual if the individual's failure or refusal to 
 37.1   cooperate could cause the applicant's application to be denied 
 37.2   or the license holder's license to be immediately suspended, 
 37.3   suspended, or revoked. 
 37.4      (e) The commissioner shall not consider an application to 
 37.5   be complete until all of the information required to be provided 
 37.6   under this subdivision has been received.  
 37.7      (f) No person in paragraph (a), clause (1), (2), (3), or 
 37.8   (4) who is disqualified as a result of this section may be 
 37.9   retained by the agency in a position involving direct contact 
 37.10  with persons served by the program. 
 37.11     (g) Termination of persons in paragraph (a), clause (1), 
 37.12  (2), (3), or (4) made in good faith reliance on a notice of 
 37.13  disqualification provided by the commissioner shall not subject 
 37.14  the applicant or license holder to civil liability. 
 37.15     (h) The commissioner may establish records to fulfill the 
 37.16  requirements of this section. 
 37.17     (i) The commissioner may not disqualify an individual 
 37.18  subject to a study under this section because that person has, 
 37.19  or has had, a mental illness as defined in section 245.462, 
 37.20  subdivision 20. 
 37.21     (j) An individual who is subject to an applicant background 
 37.22  study under this section and whose disqualification in 
 37.23  connection with a license would be subject to the limitations on 
 37.24  reconsideration set forth in subdivision 3b, paragraph (c), 
 37.25  shall be disqualified for conviction of the crimes specified in 
 37.26  the manner specified in subdivision 3b, paragraph (c).  The 
 37.27  commissioner of human services shall amend Minnesota Rules, part 
 37.28  9543.3070, to conform to this section. 
 37.29     Sec. 8.  Minnesota Statutes 1994, section 245A.04, 
 37.30  subdivision 3b, is amended to read: 
 37.31     Subd. 3b.  [RECONSIDERATION OF DISQUALIFICATION.] (a) 
 37.32  Within 30 days after receiving notice of disqualification under 
 37.33  subdivision 3a, the individual who is the subject of the study 
 37.34  may request reconsideration of the notice of disqualification.  
 37.35  The individual must submit the request for reconsideration to 
 37.36  the commissioner in writing.  The individual must present 
 38.1   information to show that: 
 38.2      (1) the information the commissioner relied upon is 
 38.3   incorrect; or 
 38.4      (2) the subject of the study does not pose a risk of harm 
 38.5   to any person served by the applicant or license holder. 
 38.6      (b) The commissioner may set aside the disqualification if 
 38.7   the commissioner finds that the information the commissioner 
 38.8   relied upon is incorrect or the individual does not pose a risk 
 38.9   of harm to any person served by the applicant or license 
 38.10  holder.  The commissioner shall review the consequences of the 
 38.11  event or events that could lead to disqualification, whether 
 38.12  there is more than one disqualifying event, the vulnerability of 
 38.13  the victim at the time of the event, the time elapsed without a 
 38.14  repeat of the same or similar event, and documentation of 
 38.15  successful completion by the individual studied of training or 
 38.16  rehabilitation pertinent to the event.  In reviewing a 
 38.17  disqualification, the commissioner shall give preeminent weight 
 38.18  to the safety of each person to be served by the license holder 
 38.19  or applicant over the interests of the license holder or 
 38.20  applicant.  
 38.21     (c) Unless the information the commissioner relied on in 
 38.22  disqualifying an individual is incorrect, the commissioner may 
 38.23  not set aside the disqualification of an individual in 
 38.24  connection with a license to provide family day care for 
 38.25  children, foster care for children in the provider's own home, 
 38.26  or foster care or day care services for adults in the provider's 
 38.27  own home if: 
 38.28     (1) less than ten years have passed since the discharge of 
 38.29  the sentence imposed for the offense; and the individual has 
 38.30  been convicted of a violation of any offense listed in section 
 38.31  609.20 (manslaughter in the first degree), 609.205 (manslaughter 
 38.32  in the second degree), 609.21 (criminal vehicular homicide), 
 38.33  609.215 (aiding suicide or aiding attempted suicide), 609.221 to 
 38.34  609.2231 (felony violations of assault in the first, second, 
 38.35  third, or fourth degree), 609.713 (terroristic threats), 609.235 
 38.36  (use of drugs to injure or to facilitate crime), 609.24 (simple 
 39.1   robbery), 609.245 (aggravated robbery), 609.25 (kidnapping), 
 39.2   609.255 (false imprisonment), 609.561 or 609.562 (arson in the 
 39.3   first or second degree), 609.71 (riot), 609.582 (burglary in the 
 39.4   first or second degree), 609.66 (reckless use of a gun or 
 39.5   dangerous weapon or intentionally pointing a gun at or towards a 
 39.6   human being), 609.665 (setting a spring gun), 609.67 (unlawfully 
 39.7   owning, possessing, or operating a machine gun), 609.749 
 39.8   (stalking), 152.021 or 152.022 (controlled substance crime in 
 39.9   the first or second degree), 152.023, subdivision 1, clause (3) 
 39.10  or (4), or subdivision 2, clause (4) (controlled substance crime 
 39.11  in the third degree), 152.024, subdivision 1, clause (2), (3), 
 39.12  or (4) (controlled substance crime in the fourth degree), 
 39.13  609.228 (great bodily harm caused by distribution of drugs), 
 39.14  609.23 (mistreatment of persons confined), 609.231 (mistreatment 
 39.15  of residents or patients), 609.265 (abduction), 609.2664 to 
 39.16  609.2665 (manslaughter of an unborn child in the first or second 
 39.17  degree), 609.267 to 609.2672 (assault of an unborn child in the 
 39.18  first, second, or third degree), 609.268 (injury or death of an 
 39.19  unborn child in the commission of a crime), 617.293 
 39.20  (disseminating or displaying harmful material to minors), 
 39.21  609.378 (neglect or endangerment of a child), 609.377 (a gross 
 39.22  misdemeanor offense of malicious punishment of a child); or an 
 39.23  attempt or conspiracy to commit any of these offenses, as each 
 39.24  of these offenses is defined in Minnesota Statutes; or an 
 39.25  offense in any other state, the elements of which are 
 39.26  substantially similar to the elements of any of the foregoing 
 39.27  offenses; 
 39.28     (2) regardless of how much time has passed since the 
 39.29  discharge of the sentence imposed for the offense, the 
 39.30  individual was convicted of a violation of any offense listed in 
 39.31  sections 609.185 to 609.195 (murder in the first, second, or 
 39.32  third degree), 609.2661 to 609.2663 (murder of an unborn child 
 39.33  in the first, second, or third degree), 609.377 (a felony 
 39.34  offense of malicious punishment of a child), 609.322 
 39.35  (soliciting, inducement, or promotion of prostitution), 609.323 
 39.36  (receiving profit derived from prostitution), 609.342 to 609.345 
 40.1   (criminal sexual conduct in the first, second, third, or fourth 
 40.2   degree), 609.352 (solicitation of children to engage in sexual 
 40.3   conduct), 617.246 (use of minors in a sexual performance), 
 40.4   617.247 (possession of pictorial representations of a minor), 
 40.5   609.365 (incest), or an attempt or conspiracy to commit any of 
 40.6   these offenses as defined in Minnesota Statutes, or an offense 
 40.7   in any other state, the elements of which are substantially 
 40.8   similar to any of the foregoing offenses; 
 40.9      (3) within the seven years preceding the study, the 
 40.10  individual committed an act that constitutes maltreatment of a 
 40.11  child under section 626.556, subdivision 10e, and that resulted 
 40.12  in substantial bodily harm as defined in section 609.02, 
 40.13  subdivision 7a, or substantial mental or emotional harm as 
 40.14  supported by competent psychological or psychiatric evidence; or 
 40.15     (4) within the seven years preceding the study, the 
 40.16  individual was determined under section 626.557 to be the 
 40.17  perpetrator of a substantiated incident of abuse of a vulnerable 
 40.18  adult that resulted in substantial bodily harm as defined in 
 40.19  section 609.02, subdivision 7a, or substantial mental or 
 40.20  emotional harm as supported by competent psychological or 
 40.21  psychiatric evidence. 
 40.22     In the case of any ground for disqualification under 
 40.23  clauses (1) to (4), if the act was committed by an individual 
 40.24  other than the applicant or license holder residing in the 
 40.25  applicant's or license holder's home, the applicant or license 
 40.26  holder may seek reconsideration when the individual who 
 40.27  committed the act no longer resides in the home.  
 40.28     The disqualification periods provided under clauses (1), 
 40.29  (3), and (4) are the minimum applicable disqualification 
 40.30  periods.  The commissioner may determine that an individual 
 40.31  should continue to be disqualified from licensure because the 
 40.32  license holder or applicant poses a risk of harm to a person 
 40.33  served by that individual after the minimum disqualification 
 40.34  period has passed. 
 40.35     (d) The commissioner shall respond in writing to all 
 40.36  reconsideration requests within 15 working days after receiving 
 41.1   the request for reconsideration.  If the disqualification is set 
 41.2   aside, the commissioner shall notify the applicant or license 
 41.3   holder in writing of the decision. 
 41.4      (e) Except as provided in subdivision 3c, the 
 41.5   commissioner's decision to disqualify an individual, including 
 41.6   the decision to grant or deny a reconsideration of 
 41.7   disqualification under this subdivision, or to set aside or 
 41.8   uphold the results of the study under subdivision 3, is the 
 41.9   final administrative agency action and shall not be subject to 
 41.10  further review in a contested case under chapter 14 involving a 
 41.11  negative licensing action taken in response to the 
 41.12  disqualification. 
 41.13     Sec. 9.  Minnesota Statutes 1994, section 245A.04, 
 41.14  subdivision 7, is amended to read: 
 41.15     Subd. 7.  [ISSUANCE OF A LICENSE; PROVISIONAL LICENSE.] (a) 
 41.16  If the commissioner determines that the program complies with 
 41.17  all applicable rules and laws, the commissioner shall issue a 
 41.18  license.  At minimum, the license shall state:  
 41.19     (1) the name of the license holder; 
 41.20     (2) the address of the program; 
 41.21     (3) the effective date and expiration date of the license; 
 41.22     (4) the type of license; 
 41.23     (5) the maximum number and ages of persons that may receive 
 41.24  services from the program; and 
 41.25     (6) any special conditions of licensure. 
 41.26     (b) The commissioner may issue a provisional license for a 
 41.27  period not to exceed one year if:  
 41.28     (1) the commissioner is unable to conduct the evaluation or 
 41.29  observation required by subdivision 4, paragraph (a), clauses (3)
 41.30  and (4), because the program is not yet operational; 
 41.31     (2) certain records and documents are not available because 
 41.32  persons are not yet receiving services from the program; and 
 41.33     (3) the applicant complies with applicable laws and rules 
 41.34  in all other respects.  
 41.35  A provisional license must not be issued except at the time that 
 41.36  a license is first issued to an applicant. 
 42.1      (c) A decision by the commissioner to issue a license does 
 42.2   not guarantee that any person or persons will be placed or cared 
 42.3   for in the licensed program.  A license shall not be 
 42.4   transferable to another individual, corporation, partnership, 
 42.5   voluntary association, other organization, or controlling 
 42.6   individual, or to another location.  Unless otherwise specified 
 42.7   by statute, all licenses expire at 12:01 a.m. on the day after 
 42.8   the expiration date stated on the license.  A license holder 
 42.9   must apply for and be granted a new license to operate the 
 42.10  program or the program must not be operated after the expiration 
 42.11  date.  
 42.12     Sec. 10.  Minnesota Statutes 1994, section 245A.04, 
 42.13  subdivision 9, is amended to read: 
 42.14     Subd. 9.  [VARIANCES.] The commissioner may grant variances 
 42.15  to rules that do not affect the health or safety of persons in a 
 42.16  licensed program if the following conditions are met:  
 42.17     (1) the variance must be requested by an applicant or 
 42.18  license holder on a form and in a manner prescribed by the 
 42.19  commissioner; 
 42.20     (2) the request for a variance must include the reasons 
 42.21  that the applicant or license holder cannot comply with a 
 42.22  requirement as stated in the rule and the alternative equivalent 
 42.23  measures that the applicant or license holder will follow to 
 42.24  comply with the intent of the rule; and 
 42.25     (3) the request must state the period of time for which the 
 42.26  variance is requested.  
 42.27     The commissioner may grant a permanent variance when 
 42.28  conditions under which the variance is requested do not affect 
 42.29  the health or safety of persons being served by the licensed 
 42.30  program, nor compromise the qualifications of staff to provide 
 42.31  services.  The permanent variance shall expire as soon as the 
 42.32  conditions that warranted the variance are modified in any way.  
 42.33  Any applicant or license holder must inform the commissioner of 
 42.34  any changes or modifications that have occurred in the 
 42.35  conditions that warranted the permanent variance.  Failure to 
 42.36  advise the commissioner shall result in revocation of the 
 43.1   permanent variance and may be cause for other sanctions under 
 43.2   sections 245A.06 and 245A.07. 
 43.3      The commissioner's decision to grant or deny a variance 
 43.4   request is final and not subject to appeal under the provisions 
 43.5   of chapter 14. 
 43.6      Sec. 11.  Minnesota Statutes 1994, section 245A.06, 
 43.7   subdivision 2, is amended to read: 
 43.8      Subd. 2.  [RECONSIDERATION OF CORRECTION ORDERS.] If the 
 43.9   applicant or license holder believes that the contents of the 
 43.10  commissioner's correction order are in error, the applicant or 
 43.11  license holder may ask the department of human services to 
 43.12  reconsider the parts of the correction order that are alleged to 
 43.13  be in error.  The request for reconsideration must be in 
 43.14  writing, delivered by certified mail and received by the 
 43.15  commissioner within 20 calendar days after receipt of the 
 43.16  correction order by the applicant or license holder, and: 
 43.17     (1) specify the parts of the correction order that are 
 43.18  alleged to be in error; 
 43.19     (2) explain why they are in error; and 
 43.20     (3) include documentation to support the allegation of 
 43.21  error. 
 43.22     A request for reconsideration does not stay any provisions 
 43.23  or requirements of the correction order.  The commissioner's 
 43.24  disposition of a request for reconsideration is final and not 
 43.25  subject to appeal under chapter 14. 
 43.26     Sec. 12.  Minnesota Statutes 1994, section 245A.06, 
 43.27  subdivision 4, is amended to read: 
 43.28     Subd. 4.  [NOTICE OF FINE; APPEAL.] A license holder who is 
 43.29  ordered to pay a fine must be notified of the order by certified 
 43.30  mail.  The notice must be mailed to the address shown on the 
 43.31  application or the last known address of the license holder.  
 43.32  The notice must state the reasons the fine was ordered and must 
 43.33  inform the license holder of the responsibility for payment of 
 43.34  fines in subdivision 7 and the right to a contested case hearing 
 43.35  under chapter 14.  The license holder may appeal the order to 
 43.36  forfeit a fine by notifying the commissioner by certified mail 
 44.1   within 15 calendar days after receiving the order.  A timely 
 44.2   appeal shall stay forfeiture of the fine until the commissioner 
 44.3   issues a final order under section 245A.08, subdivision 5. 
 44.4      Sec. 13.  Minnesota Statutes 1994, section 245A.06, is 
 44.5   amended by adding a subdivision to read: 
 44.6      Subd. 7.  [RESPONSIBILITY FOR PAYMENT OF FINES.] When a 
 44.7   fine has been assessed, the license holder may not avoid payment 
 44.8   by closing, selling, or otherwise transferring the licensed 
 44.9   program to a third party.  In such an event, the license holder 
 44.10  will be personally liable for payment.  In the case of a 
 44.11  corporation, each controlling individual is personally and 
 44.12  jointly liable for payment. 
 44.13     Sec. 14.  Minnesota Statutes 1994, section 245A.07, 
 44.14  subdivision 3, is amended to read: 
 44.15     Subd. 3.  [SUSPENSION, REVOCATION, PROBATION.] The 
 44.16  commissioner may suspend, revoke, or make probationary a license 
 44.17  if a license holder fails to comply fully with applicable laws 
 44.18  or rules or knowingly gives false or misleading information to 
 44.19  the commissioner in connection with an application for a license 
 44.20  or during an investigation.  A license holder who has had a 
 44.21  license suspended, revoked, or made probationary must be given 
 44.22  notice of the action by certified mail.  The notice must be 
 44.23  mailed to the address shown on the application or the last known 
 44.24  address of the license holder.  The notice must state the 
 44.25  reasons the license was suspended, revoked, or made probationary.
 44.26     (a) If the license was suspended or revoked, the notice 
 44.27  must inform the license holder of the right to a contested case 
 44.28  hearing under chapter 14.  The license holder may appeal an 
 44.29  order suspending or revoking a license.  The appeal of an order 
 44.30  suspending or revoking a license must be made in writing by 
 44.31  certified mail and must be received by the commissioner within 
 44.32  ten calendar days after the license holder receives notice that 
 44.33  the license has been suspended or revoked.  
 44.34     (b) If the license was made probationary, the notice must 
 44.35  inform the license holder of the right to request a 
 44.36  reconsideration by the commissioner.  The request for 
 45.1   reconsideration must be made in writing by certified mail and 
 45.2   must be received by the commissioner within ten calendar days 
 45.3   after the license holder receives notice that the license has 
 45.4   been made probationary.  The license holder may submit with the 
 45.5   request for reconsideration written argument or evidence in 
 45.6   support of the request for reconsideration.  The commissioner's 
 45.7   disposition of a request for reconsideration is final and is not 
 45.8   subject to appeal under chapter 14.  
 45.9      Sec. 15.  Minnesota Statutes 1994, section 245A.09, is 
 45.10  amended by adding a subdivision to read: 
 45.11     Subd. 8.  [INTERPRETIVE GUIDELINES; AUTHORITY.] The 
 45.12  commissioner of human services may develop and publish 
 45.13  interpretive guidelines. 
 45.14     Sec. 16.  Minnesota Statutes 1994, section 245A.09, is 
 45.15  amended by adding a subdivision to read: 
 45.16     Subd. 9.  [EFFECT OF INTERPRETIVE GUIDELINES.] Interpretive 
 45.17  guidelines do not have the force and effect of law and have no 
 45.18  precedential effect, but may be relied on by consumers, 
 45.19  providers of service, county agencies, the department of human 
 45.20  services, and others concerned until revoked or modified.  A 
 45.21  guideline may be expressly revoked or modified by the 
 45.22  commissioner, by the issuance of another interpretive guideline, 
 45.23  but may not be revoked or modified retroactively to the 
 45.24  detriment of consumers, providers of service, county agencies, 
 45.25  the department of human services, or others concerned.  A change 
 45.26  in the law or an interpretation of the law occurring after the 
 45.27  interpretive guidelines are issued, whether in the form of a 
 45.28  statute, court decision, administrative ruling, or subsequent 
 45.29  interpretive guideline, results in the revocation or 
 45.30  modification of the previously adopted guidelines to the extent 
 45.31  that the change affects the guidelines. 
 45.32     Sec. 17.  Minnesota Statutes 1994, section 245A.09, is 
 45.33  amended by adding a subdivision to read: 
 45.34     Subd. 10.  [RULEMAKING PROCESS; COMMISSIONER EXEMPTED.] 
 45.35  When developing, making, adopting, and issuing interpretive 
 45.36  guidelines under the authority granted under subdivision 8, the 
 46.1   commissioner is exempt from the rulemaking provisions of chapter 
 46.2   14. 
 46.3      Sec. 18.  Minnesota Statutes 1994, section 245A.09, is 
 46.4   amended by adding a subdivision to read: 
 46.5      Subd. 11.  [ISSUANCE; DISCRETION OF THE COMMISSIONER.] The 
 46.6   issuance of interpretive guidelines is at the discretion of the 
 46.7   commissioner of human services. 
 46.8      Sec. 19.  Minnesota Statutes 1994, section 245A.09, is 
 46.9   amended by adding a subdivision to read: 
 46.10     Subd. 12.  [PUBLICATION OF GUIDELINES.] The commissioner 
 46.11  shall publish notice of interpretive guidelines availability in 
 46.12  the State Register.  The commissioner may publish or make 
 46.13  available the interpretive guidelines in any manner determined 
 46.14  by the commissioner, provided they are accessible to the general 
 46.15  public.  The commissioner may charge a reasonable fee for copies 
 46.16  of the guidelines requested by interested parties when they are 
 46.17  provided by the commissioner. 
 46.18     Sec. 20.  Minnesota Statutes 1994, section 245A.14, 
 46.19  subdivision 6, is amended to read: 
 46.20     Subd. 6.  [DROP-IN CHILD CARE PROGRAMS.] (a) Except as 
 46.21  expressly set forth in this subdivision, drop-in child care 
 46.22  programs must be licensed as a drop-in program under the rules 
 46.23  governing child care programs operated in a center.  
 46.24     (b) Drop-in child care programs are exempt from the 
 46.25  following Minnesota Rules: 
 46.26     (1) part 9503.0040; 
 46.27     (2) part 9503.0045, subpart 1, items F and G; 
 46.28     (3) part 9503.0050, subpart 6, except for children less 
 46.29  than 2-1/2 years old; 
 46.30     (4) one-half the requirements of part 9503.0060, subpart 4, 
 46.31  item A, subitems (2), (5), and (8), subpart 5, item A, subitems 
 46.32  (2), (3), and (7), and subpart 6, item A, subitems (3) and (6); 
 46.33     (5) part 9503.0070; and 
 46.34     (6) part 9503.0090, subpart 2.  
 46.35     (c) A drop-in child care program must be operated under the 
 46.36  supervision of a person qualified as a director and a teacher.  
 47.1      (d) A drop-in child care program must have at least two 
 47.2   persons on staff whenever the program is operating, except that 
 47.3   the commissioner may permit variances from this requirement 
 47.4   under specified circumstances for parent cooperative programs, 
 47.5   as long as all other staff-to-child ratios are met.  
 47.6      (e) Whenever the total number of children present to be 
 47.7   cared for at a center is more than 20, children that are younger 
 47.8   than age 2-1/2 must be in a separate group.  This group may 
 47.9   contain children up to 60 months old.  This group must be cared 
 47.10  for in an area that is physically separated from older children. 
 47.11     (f) A drop-in child care program must maintain a minimum 
 47.12  staff ratio for children age 2-1/2 or greater of one staff 
 47.13  person for each ten children.  
 47.14     (g) If the program has additional staff who are on call as 
 47.15  a mandatory condition of their employment, the minimum 
 47.16  child-to-staff ratio may be exceeded only for children age 2-1/2 
 47.17  or greater, by a maximum of four children, for no more than 20 
 47.18  minutes while additional staff are in transit.  
 47.19     (h) The minimum staff-to-child ratio for infants up to 16 
 47.20  months of age is one staff person for every four infants.  The 
 47.21  minimum staff-to-child ratio for children age 17 months to 30 
 47.22  months is one staff for every seven children.  
 47.23     (i) In drop-in care programs that serve both infants and 
 47.24  older children, children up to age 2-1/2 may be supervised by 
 47.25  assistant teachers, as long as other staff are present in 
 47.26  appropriate ratios.  
 47.27     (j) The minimum staff distribution pattern for a drop-in 
 47.28  child care program serving children age 2-1/2 or greater is:  
 47.29  the first staff member must be a teacher; the second, third, and 
 47.30  fourth staff members must have at least the qualifications of a 
 47.31  child care aide; the fifth staff member must have at least the 
 47.32  qualifications of an assistant teacher; the sixth, seventh, and 
 47.33  eighth staff members must have at least the qualifications of a 
 47.34  child care aide; and the ninth staff person must have at least 
 47.35  the qualifications of an assistant teacher.  
 47.36     (k) A drop-in child care program may care for siblings 16 
 48.1   months or older together in any group.  For purposes of this 
 48.2   subdivision, sibling is defined as sister or brother, 
 48.3   half-sister or half-brother, or stepsister or stepbrother. 
 48.4      (l) The commissioner may grant a variance to any of the 
 48.5   requirements in paragraphs (a) to (k), as long as the health and 
 48.6   safety of the persons served by the program are not affected.  
 48.7   The request for a variance shall comply with the provisions in 
 48.8   section 245A.04, subdivision 9. 
 48.9      Sec. 21.  Minnesota Statutes 1994, section 256.014, 
 48.10  subdivision 1, is amended to read: 
 48.11     Subdivision 1.  [ESTABLISHMENT OF SYSTEMS.] The 
 48.12  commissioner of human services shall establish and enhance 
 48.13  computer systems necessary for the efficient operation of the 
 48.14  programs the commissioner supervises, including: 
 48.15     (1) management and administration of the food stamp and 
 48.16  income maintenance programs, including the electronic 
 48.17  distribution of benefits; 
 48.18     (2) management and administration of the child support 
 48.19  enforcement program; and 
 48.20     (3) administration of medical assistance and general 
 48.21  assistance medical care. 
 48.22     The commissioner shall distribute the nonfederal share of 
 48.23  the costs of operating and maintaining the systems to the 
 48.24  commissioner and to the counties participating in the system in 
 48.25  a manner that reflects actual system usage, except that the 
 48.26  nonfederal share of the costs of the MAXIS computer system and 
 48.27  child support enforcement systems shall be borne entirely by the 
 48.28  commissioner.  Development costs must not be assessed against 
 48.29  county agencies. 
 48.30     Sec. 22.  Minnesota Statutes 1994, section 256.025, 
 48.31  subdivision 1, is amended to read: 
 48.32     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
 48.33  section, the following terms have the meanings given them.  
 48.34     (b) "Base amount" means the calendar year 1990 county share 
 48.35  of county agency expenditures for all of the programs specified 
 48.36  in subdivision 2, except for the programs in subdivision 2, 
 49.1   clauses (4), (7), and (13).  The 1990 base amount for 
 49.2   subdivision 2, clause (4), shall be reduced by one-seventh for 
 49.3   each county, and the 1990 base amount for subdivision 2, clause 
 49.4   (7), shall be reduced by seven-tenths for each county, and those 
 49.5   amounts in total shall be the 1990 base amount for group 
 49.6   residential housing in subdivision 2, clause (13).  
 49.7      (c) "County agency expenditure" means the total expenditure 
 49.8   or cost incurred by the county of financial responsibility for 
 49.9   the benefits and services for each of the programs specified in 
 49.10  subdivision 2, excluding county optional costs which are not 
 49.11  reimbursable with state funds.  The term includes the federal, 
 49.12  state, and county share of costs for programs in which there is 
 49.13  federal financial participation.  For programs in which there is 
 49.14  no federal financial participation, the term includes the state 
 49.15  and county share of costs.  The term excludes county 
 49.16  administrative costs, unless otherwise specified.  
 49.17     (d) "Nonfederal share" means the sum of state and county 
 49.18  shares of costs of the programs specified in subdivision 2. 
 49.19     (e) The "county share of county agency expenditures growth 
 49.20  amount" is the amount by which the county share of county agency 
 49.21  expenditures in calendar years 1991 to 2000 2002 has increased 
 49.22  over the base amount. 
 49.23     Sec. 23.  Minnesota Statutes 1994, section 256.025, 
 49.24  subdivision 2, is amended to read: 
 49.25     Subd. 2.  [COVERED PROGRAMS AND SERVICES.] The procedures 
 49.26  in this section govern payment of county agency expenditures for 
 49.27  benefits and services distributed under the following programs: 
 49.28     (1) aid to families with dependent children under sections 
 49.29  256.82, subdivision 1, and 256.935, subdivision 1; 
 49.30     (2) medical assistance under sections 256B.041, subdivision 
 49.31  5, and 256B.19, subdivision 1; 
 49.32     (3) general assistance medical care under section 256D.03, 
 49.33  subdivision 6; 
 49.34     (4) general assistance under section 256D.03, subdivision 
 49.35  2; 
 49.36     (5) work readiness under section 256D.03, subdivision 2, 
 50.1   for assistance costs incurred prior to July 1, 1995; 
 50.2      (6) emergency assistance under section 256.871, subdivision 
 50.3   6; 
 50.4      (7) Minnesota supplemental aid under section 256D.36, 
 50.5   subdivision 1; 
 50.6      (8) preadmission screening and alternative care grants; 
 50.7      (9) work readiness services under section 256D.051 for 
 50.8   employment and training services costs incurred prior to July 1, 
 50.9   1995; 
 50.10     (10) case management services under section 256.736, 
 50.11  subdivision 13, for case management service costs incurred prior 
 50.12  to July 1, 1995; 
 50.13     (11) general assistance claims processing, medical 
 50.14  transportation and related costs; 
 50.15     (12) medical assistance, medical transportation and related 
 50.16  costs; and 
 50.17     (13) group residential housing under section 256I.05, 
 50.18  subdivision 8, transferred from programs in clauses (4) and (7). 
 50.19     Sec. 24.  Minnesota Statutes 1994, section 256.025, 
 50.20  subdivision 3, is amended to read: 
 50.21     Subd. 3.  [PAYMENT METHODS.] (a) Beginning July 1, 1991, 
 50.22  the state will reimburse counties for the county share of county 
 50.23  agency expenditures for benefits and services distributed under 
 50.24  subdivision 2.  Reimbursement may take the form of offsets to 
 50.25  billings of a county, if the county agrees to the offset process.
 50.26     (b) Payments under subdivision 4 are only for client 
 50.27  benefits and services distributed under subdivision 2 and do not 
 50.28  include reimbursement for county administrative expenses. 
 50.29     (c) The state and the county agencies shall pay for 
 50.30  assistance programs as follows: 
 50.31     (1) Where the state issues payments for the programs, the 
 50.32  county shall monthly or quarterly pay to the state, as required 
 50.33  by the department of human services, the portion of program 
 50.34  costs not met by federal and state funds.  The payment shall be 
 50.35  an estimate that is based on actual expenditures from the prior 
 50.36  period and that is sufficient to compensate for the county share 
 51.1   of disbursements as well as state and federal shares of 
 51.2   recoveries; 
 51.3      (2) Where the county agencies issue payments for the 
 51.4   programs, the state shall monthly or quarterly pay to counties 
 51.5   all federal funds available for those programs together with an 
 51.6   amount of state funds equal to the state share of expenditures; 
 51.7   and 
 51.8      (3) Payments made under this paragraph are subject to 
 51.9   section 256.017.  Adjustment of any overestimate or 
 51.10  underestimate in payments shall be made by the state agency in 
 51.11  any succeeding month. 
 51.12     Sec. 25.  Minnesota Statutes 1994, section 256.026, is 
 51.13  amended to read: 
 51.14     256.026 [ANNUAL APPROPRIATION.] 
 51.15     (a) There shall be appropriated from the general fund to 
 51.16  the commissioner of human services in fiscal year 1994 1996 the 
 51.17  amount of $136,154,768 and in fiscal year 1997 and each fiscal 
 51.18  year thereafter the amount of $142,339,359, which is the sum of 
 51.19  the amount of human services aid determined for all counties in 
 51.20  Minnesota for calendar year 1992 under Minnesota Statutes 1992, 
 51.21  section 273.1398, subdivision 5a, before any adjustments for 
 51.22  calendar year 1991 $133,781,768.  
 51.23     (b) In addition to the amount in paragraph (a), there shall 
 51.24  also be annually appropriated from the general fund to the 
 51.25  commissioner of human services in fiscal years 1996, 1997, 1998, 
 51.26  1999, 2000, and 2001 the amount of $5,930,807 $5,574,241. 
 51.27     (c) The amounts appropriated under paragraphs (a) and (b) 
 51.28  shall be used with other appropriations to make payments 
 51.29  required under section 256.025 for fiscal year 1994 1996 and 
 51.30  thereafter. 
 51.31     Sec. 26.  Minnesota Statutes 1994, section 256.034, 
 51.32  subdivision 1, is amended to read: 
 51.33     Subdivision 1.  [CONSOLIDATION OF TYPES OF ASSISTANCE.] 
 51.34  Under the Minnesota family investment plan, assistance 
 51.35  previously provided to families through the AFDC, food stamp, 
 51.36  and general assistance programs must be combined into a single 
 52.1   cash assistance program.  As authorized by Congress, families 
 52.2   receiving assistance through the Minnesota family investment 
 52.3   plan are automatically eligible for and entitled to medical 
 52.4   assistance under chapter 256B.  Federal, state, and local funds 
 52.5   that would otherwise be allocated for assistance to families 
 52.6   under the AFDC, food stamp, and general assistance programs must 
 52.7   be transferred to the Minnesota family investment plan.  The 
 52.8   provisions of the Minnesota family investment plan prevail over 
 52.9   any provisions of sections 245.771, 256.72 to 256.87, 256D.01 to 
 52.10  256D.21, or 393.07, subdivisions 10 and 10a, and any rules 
 52.11  implementing those sections with which they are irreconcilable.  
 52.12  The food stamp, general assistance, and work readiness programs 
 52.13  for single persons and couples who are not responsible for the 
 52.14  care of children are not replaced by the Minnesota family 
 52.15  investment plan.  Unless stated otherwise in statutes or rules 
 52.16  governing the Minnesota family investment plan, participants in 
 52.17  the Minnesota family investment plan shall be considered to be 
 52.18  recipients of aid under aid to families with dependent children, 
 52.19  family general assistance, and food stamps for the purposes of 
 52.20  statutes and rules affecting such recipients or allocations of 
 52.21  funding based on the assistance status of the recipients, and to 
 52.22  specifically be subject to the provisions of section 256.98.  
 52.23     Sec. 27.  Minnesota Statutes 1994, section 256.045, 
 52.24  subdivision 3, is amended to read: 
 52.25     Subd. 3.  [STATE AGENCY HEARINGS.] (a) Any person applying 
 52.26  for, receiving or having received public assistance or a program 
 52.27  of social services granted by the state agency or a county 
 52.28  agency under sections 252.32, 256.031 to 256.036, and 256.72 to 
 52.29  256.879, chapters 256B, 256D, 256E, 261, or the federal Food 
 52.30  Stamp Act whose application for assistance is denied, not acted 
 52.31  upon with reasonable promptness, or whose assistance is 
 52.32  suspended, reduced, terminated, or claimed to have been 
 52.33  incorrectly paid, or any patient or relative aggrieved by an 
 52.34  order of the commissioner under section 252.27, or a party 
 52.35  aggrieved by a ruling of a prepaid health plan, may contest that 
 52.36  action or decision before the state agency by submitting a 
 53.1   written request for a hearing to the state agency within 30 days 
 53.2   after receiving written notice of the action or decision, or 
 53.3   within 90 days of such written notice if the applicant, 
 53.4   recipient, patient, or relative shows good cause why the request 
 53.5   was not submitted within the 30-day time limit. 
 53.6      (b) Except for a prepaid health plan, a vendor of medical 
 53.7   care as defined in section 256B.02, subdivision 7, or a vendor 
 53.8   under contract with a county agency to provide social services 
 53.9   under section 256E.08, subdivision 4, is not a party and may not 
 53.10  request a hearing under this section, except if assisting a 
 53.11  recipient as provided in subdivision 4. 
 53.12     (c) An applicant or recipient is not entitled to receive 
 53.13  social services beyond the services included in the amended 
 53.14  community social services plan developed under section 256E.081, 
 53.15  subdivision 3, if the county agency has met the requirements in 
 53.16  section 256E.081. 
 53.17     Sec. 28.  Minnesota Statutes 1994, section 256.045, 
 53.18  subdivision 4, is amended to read: 
 53.19     Subd. 4.  [CONDUCT OF HEARINGS.] All hearings held pursuant 
 53.20  to subdivision 3, 3a, or 4a shall be conducted according to the 
 53.21  provisions of the federal Social Security Act and the 
 53.22  regulations implemented in accordance with that act to enable 
 53.23  this state to qualify for federal grants-in-aid, and according 
 53.24  to the rules and written policies of the commissioner of human 
 53.25  services.  County agencies shall install equipment necessary to 
 53.26  conduct telephone hearings.  A state human services referee may 
 53.27  schedule a telephone conference hearing when the distance or 
 53.28  time required to travel to the county agency offices will cause 
 53.29  a delay in the issuance of an order, or to promote efficiency, 
 53.30  or at the mutual request of the parties.  Hearings may be 
 53.31  conducted by telephone conferences unless the applicant, 
 53.32  recipient, or former recipient objects.  The hearing shall not 
 53.33  be held earlier than five days after filing of the required 
 53.34  notice with the county or state agency.  The state human 
 53.35  services referee shall notify all interested persons of the 
 53.36  time, date, and location of the hearing at least five days 
 54.1   before the date of the hearing.  Interested persons may be 
 54.2   represented by legal counsel or other representative of their 
 54.3   choice, including a provider of therapy services, at the hearing 
 54.4   and may appear personally, testify and offer evidence, and 
 54.5   examine and cross-examine witnesses.  The applicant, recipient, 
 54.6   or former recipient shall have the opportunity to examine the 
 54.7   contents of the case file and all documents and records to be 
 54.8   used by the county or state agency at the hearing at a 
 54.9   reasonable time before the date of the hearing and during the 
 54.10  hearing.  Upon request, the county agency shall provide 
 54.11  reimbursement for transportation, child care, photocopying, 
 54.12  medical assessment, witness fee, and other necessary and 
 54.13  reasonable costs incurred by the applicant, recipient, or former 
 54.14  recipient in connection with the appeal.  All evidence, except 
 54.15  that privileged by law, commonly accepted by reasonable people 
 54.16  in the conduct of their affairs as having probative value with 
 54.17  respect to the issues shall be submitted at the hearing and such 
 54.18  hearing shall not be "a contested case" within the meaning of 
 54.19  section 14.02, subdivision 3.  The agency must present its 
 54.20  evidence prior to or at the hearing, and may not submit evidence 
 54.21  after the hearing except by agreement of the parties at the 
 54.22  hearing, provided the recipient has the opportunity to respond. 
 54.23     Sec. 29.  Minnesota Statutes 1994, section 256.045, 
 54.24  subdivision 5, is amended to read: 
 54.25     Subd. 5.  [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] A 
 54.26  state human services referee shall conduct a hearing on the 
 54.27  appeal and shall recommend an order to the commissioner of human 
 54.28  services.  The recommended order must be based on all relevant 
 54.29  evidence and must not be limited to a review of the propriety of 
 54.30  the state or county agency's action.  A referee may take 
 54.31  official notice of adjudicative facts.  The commissioner of 
 54.32  human services may accept the recommended order of a state human 
 54.33  services referee and issue the order to the county agency and 
 54.34  the applicant, recipient, former recipient, or prepaid health 
 54.35  plan.  The commissioner on refusing to accept the recommended 
 54.36  order of the state human services referee, shall notify the 
 55.1   county agency and the applicant, recipient, former recipient, or 
 55.2   prepaid health plan of that fact and shall state reasons 
 55.3   therefor and shall allow each party ten days' time to submit 
 55.4   additional written argument on the matter.  After the expiration 
 55.5   of the ten-day period, the commissioner shall issue an order on 
 55.6   the matter to the county agency and the applicant, recipient, 
 55.7   former recipient, or prepaid health plan. 
 55.8      A party aggrieved by an order of the commissioner may 
 55.9   appeal under subdivision 7, or request reconsideration by the 
 55.10  commissioner within 30 days after the date the commissioner 
 55.11  issues the order.  The commissioner may reconsider an order upon 
 55.12  request of any party or on the commissioner's own motion.  A 
 55.13  request for reconsideration does not stay implementation of the 
 55.14  commissioner's order.  Upon reconsideration, the commissioner 
 55.15  may issue an amended order or an order affirming the original 
 55.16  order. 
 55.17     Any order of the commissioner issued under this subdivision 
 55.18  shall be conclusive upon the parties unless appeal is taken in 
 55.19  the manner provided by subdivision 7.  Any order of the 
 55.20  commissioner is binding on the parties and must be implemented 
 55.21  by the state agency or a county agency until the order is 
 55.22  reversed by the district court, or unless the commissioner or a 
 55.23  district court orders monthly assistance or aid or services paid 
 55.24  or provided under subdivision 10. 
 55.25     Except for a prepaid health plan, a vendor of medical care 
 55.26  as defined in section 256B.02, subdivision 7, or a vendor under 
 55.27  contract with a county agency to provide social services under 
 55.28  section 256E.08, subdivision 4, is not a party and may not 
 55.29  request a hearing or seek judicial review of an order issued 
 55.30  under this section, unless assisting a recipient as provided in 
 55.31  subdivision 4. 
 55.32     Sec. 30.  Minnesota Statutes 1994, section 256.98, 
 55.33  subdivision 1, is amended to read: 
 55.34     Subdivision 1.  [WRONGFULLY OBTAINING ASSISTANCE.] A person 
 55.35  who obtains, or attempts to obtain, or aids or abets any person 
 55.36  to obtain by means of a willfully false statement or 
 56.1   representation, by intentional concealment of a material fact, 
 56.2   or by impersonation or other fraudulent device, assistance to 
 56.3   which the person is not entitled or assistance greater than that 
 56.4   to which the person is entitled, or who knowingly aids or abets 
 56.5   in buying or in any way disposing of the property of a recipient 
 56.6   or applicant of assistance without the consent of the county 
 56.7   agency with intent to defeat the purposes of sections 
 56.8   256.12, 256.031 to 256.0361, 256.72 to 256.871, and chapter 
 56.9   256B, or all of these sections is guilty of theft and shall be 
 56.10  sentenced pursuant to section 609.52, subdivision 3, clauses 
 56.11  (2), (3)(a) and (c), (4), and (5). 
 56.12     Sec. 31.  Minnesota Statutes 1994, section 256.98, 
 56.13  subdivision 8, is amended to read: 
 56.14     Subd. 8.  [DISQUALIFICATION FROM PROGRAM.] Any person found 
 56.15  to be guilty of wrongfully obtaining assistance by a federal or 
 56.16  state court or by an administrative hearing determination, or 
 56.17  waiver thereof, through a disqualification consent agreement, or 
 56.18  as part of any approved diversion plan under section 401.065 in 
 56.19  either the aid to families with dependent children program or, 
 56.20  the food stamp program, the Minnesota family investment plan, 
 56.21  the general assistance or family general assistance program, the 
 56.22  Minnesota supplemental aid program, or the work readiness 
 56.23  program shall be disqualified from that program.  The needs of 
 56.24  that individual shall not be taken into consideration in 
 56.25  determining the grant level for that assistance unit:  
 56.26     (1) for six months after the first offense; 
 56.27     (2) for 12 months after the second offense; and 
 56.28     (3) permanently after the third or subsequent offense.  
 56.29     Any The period for which sanctions are imposed is 
 56.30  effective, of program disqualification shall begin on the date 
 56.31  stipulated on the advance notice of disqualification without 
 56.32  possibility of postponement for administrative stay, or 
 56.33  administrative hearing and shall continue through completion 
 56.34  unless and until the findings upon which the sanctions were 
 56.35  imposed are reversed by a court of competent jurisdiction.  The 
 56.36  period for which sanctions are imposed is not subject to 
 57.1   review.  The sanctions provided under this subdivision are in 
 57.2   addition to, and not in substitution for, any other sanctions 
 57.3   that may be provided for by law for the offense involved.  A 
 57.4   disqualification established through hearing or waiver shall 
 57.5   result in the disqualification period beginning immediately 
 57.6   unless the person has become otherwise ineligible for 
 57.7   assistance.  If the person is ineligible for assistance, the 
 57.8   disqualification period begins when the person again meets the 
 57.9   eligibility criteria of the program from which they were 
 57.10  disqualified. 
 57.11     Sec. 32.  Minnesota Statutes 1994, section 256.983, 
 57.12  subdivision 4, is amended to read: 
 57.13     Subd. 4.  [FUNDING.] (a) Every involved county agency shall 
 57.14  either have in place or obtain an approved contract which meets 
 57.15  all federal requirements necessary to obtain enhanced federal 
 57.16  funding for its welfare fraud control and fraud prevention 
 57.17  investigation programs.  County agency reimbursement shall be 
 57.18  made through the settlement provisions applicable to the aid to 
 57.19  families with dependent children and food stamp programs. 
 57.20     (b) After allowing an opportunity to establish compliance, 
 57.21  the commissioner will deny administrative reimbursement if for 
 57.22  any three-month period during any grant year, a county agency 
 57.23  fails to comply with fraud investigation guidelines, or fails to 
 57.24  meet the cost-effectiveness standards developed by the 
 57.25  commissioner.  This result is contingent on the commissioner 
 57.26  providing written notice, including an offer of technical 
 57.27  assistance, within 30 days of the end of the third or subsequent 
 57.28  month of noncompliance.  The county agency shall be required to 
 57.29  submit a corrective action plan to the commissioner within 30 
 57.30  days of receipt of a notice of noncompliance.  Failure to submit 
 57.31  a corrective action plan or, continued deviation from standards 
 57.32  of more than ten percent after submission of a corrective action 
 57.33  plan, will result in denial of funding for each subsequent month 
 57.34  during the grant year or billing the county agency for fraud 
 57.35  prevention investigation (FPI) service provided by the 
 57.36  commissioner.  The denial of funding shall apply to the general 
 58.1   settlement received by the county agency on a quarterly basis 
 58.2   and shall not reduce the grant amount applicable to the FPI 
 58.3   project.  
 58.4      Sec. 33.  [256.986] [FRAUD CONTROL; PROGRAM INTEGRITY 
 58.5   REINVESTMENT PROJECT.] 
 58.6      Subdivision 1.  [PROGRAM ESTABLISHED.] Within the limits of 
 58.7   available state and federal appropriations, and to the extent 
 58.8   required or authorized by applicable federal regulations, the 
 58.9   commissioner of human services shall make funding available to 
 58.10  county agencies for the establishment of program integrity 
 58.11  reinvestment initiatives.  The project shall initially be 
 58.12  limited to those county agencies participating in federally 
 58.13  funded optional fraud control programs as of January 1, 1995.  
 58.14     Subd. 2.  [COUNTY PROPOSALS.] Each included county shall 
 58.15  develop and submit annual funding, staffing, and operating grant 
 58.16  proposals to the commissioner no later than April 30 of each 
 58.17  year.  For the first operating year only, the proposal shall be 
 58.18  submitted no later than October 30.  Each proposal shall provide 
 58.19  information on:  (a) the staffing and funding of the fraud 
 58.20  investigation and prosecution operations; (b) job descriptions 
 58.21  for agency fraud control staff; (c) contracts covering outside 
 58.22  investigative agencies; (d) operational methods to integrate the 
 58.23  use of fraud prevention investigation techniques; and (e) 
 58.24  administrative disqualification hearings and diversions into the 
 58.25  existing county fraud control and prosecution procedures.  
 58.26     Subd. 3.  [DEPARTMENT RESPONSIBILITIES.] The commissioner 
 58.27  shall provide written instructions outlining the contents of the 
 58.28  proposals to be submitted under this section.  Instructions 
 58.29  shall be made available 30 days prior to the date by which 
 58.30  proposals under subdivision 2 must be submitted.  The 
 58.31  commissioner shall establish training programs which shall be 
 58.32  attended by fraud control staff of all involved counties.  The 
 58.33  commissioner shall also develop the necessary operational 
 58.34  guidelines, forms, and reporting mechanisms which shall be used 
 58.35  by the involved counties.  
 58.36     Subd. 4.  [STANDARDS.] The commissioner shall establish 
 59.1   standards governing the performance levels of involved county 
 59.2   investigative units based on grant agreements negotiated with 
 59.3   the involved county agencies.  The standards shall take into 
 59.4   consideration and may include investigative caseloads, grant 
 59.5   savings levels, the comparison of fraud prevention and 
 59.6   prosecution directed investigations, utilization levels of 
 59.7   administrative disqualification hearings, the timely reporting 
 59.8   and implementation of disqualifications, and the timeliness of 
 59.9   reports received from prosecutors.  
 59.10     Subd. 5.  [FUNDING.] (a) Grant funds are intended to help 
 59.11  offset the reduction in federal financial participation to 50 
 59.12  percent and may be apportioned to the participating counties 
 59.13  whenever feasible, and within the commissioner's discretion, to 
 59.14  achieve this goal.  State funding shall be made available 
 59.15  contingent on counties submitting a plan that is approved by the 
 59.16  department of human services.  Failure or delay in obtaining 
 59.17  that approval shall not, however, eliminate the obligation to 
 59.18  maintain fraud control efforts at the January 1, 1995, level.  
 59.19  Additional counties may be added to the project to the extent 
 59.20  that funds are subsequently made available.  Every involved 
 59.21  county must meet all federal requirements necessary to obtain 
 59.22  federal funding for its welfare fraud control and prevention 
 59.23  programs.  County agency reimbursement shall be made through the 
 59.24  settlement provisions applicable to the AFDC and food stamp 
 59.25  programs.  
 59.26     (b) Should a county agency fail to comply with the 
 59.27  standards set, or fail to meet cost-effectiveness standards 
 59.28  developed by the commissioner for three months during any grant 
 59.29  year, the commissioner shall deny reimbursement or 
 59.30  administrative costs, after allowing an opportunity to establish 
 59.31  compliance.  
 59.32     (c) Any denial of reimbursement under clause (b) is 
 59.33  contingent on the commissioner providing written notice, 
 59.34  including an offer of technical assistance, within 30 days of 
 59.35  the end of the third or subsequent months of noncompliance.  The 
 59.36  county agency shall be required to submit a corrective action 
 60.1   plan to the commissioner within 30 days of receipt of a notice 
 60.2   of noncompliance.  Failure to submit a corrective action plan or 
 60.3   continued deviation from standards of more than ten percent 
 60.4   after submission of corrective action plan, will result in 
 60.5   denial of funding for each such month during the grant year, or 
 60.6   billing the county agency for program integrity reinvestment 
 60.7   project services provided by the commissioner.  The denial of 
 60.8   funding shall apply to the general settlement received by the 
 60.9   county agency on a quarterly basis and shall not reduce the 
 60.10  grant amount applicable to the program integrity reinvestment 
 60.11  project. 
 60.12     Sec. 34.  [256.9861] [ASSISTANCE TRANSACTION CARD FEE.] 
 60.13     Subdivision 1.  [REPLACEMENT CARD.] The commissioner of 
 60.14  human services may charge a cardholder, defined as a person in 
 60.15  whose name the transaction card was issued, a $2 fee to replace 
 60.16  an assistance transaction card.  The fees shall be appropriated 
 60.17  to the commissioner and used for electronic benefit purposes. 
 60.18     Subd. 2.  [TRANSACTION FEE.] The commissioner may charge 
 60.19  transaction fees in accordance with this subdivision up to a 
 60.20  maximum of $10 in transaction fees per cardholder per month.  In 
 60.21  a given month, the first four cash withdrawals made by an 
 60.22  individual cardholder are free.  For subsequent cash 
 60.23  withdrawals, $1 may be charged.  No transaction fee can be 
 60.24  charged if the card is used to purchase goods or services on a 
 60.25  point of sale basis.  A transaction fee subsequently set by the 
 60.26  federal government may supersede a fee established under this 
 60.27  subdivision.  The fees shall be appropriated to the commissioner 
 60.28  and used for electronic benefit purposes. 
 60.29     Sec. 35.  Minnesota Statutes 1994, section 524.6-207, is 
 60.30  amended to read: 
 60.31     524.6-207 [RIGHTS OF CREDITORS.] 
 60.32     No multiple-party account will be effective against an 
 60.33  estate of a deceased party to transfer to a survivor sums needed 
 60.34  to pay debts, taxes, and expenses of administration, including 
 60.35  statutory allowances to the surviving spouse, minor children and 
 60.36  dependent children or against a county agency with a claim 
 61.1   authorized by section 256B.15, if other assets of the estate are 
 61.2   insufficient, to the extent the deceased party is the source of 
 61.3   the funds or beneficial owner.  A surviving party or P.O.D. 
 61.4   payee who receives payment from a multiple-party account after 
 61.5   the death of a deceased party shall be liable to account to the 
 61.6   deceased party's personal representative or a county agency with 
 61.7   a claim authorized by section 256B.15 for amounts the decedent 
 61.8   owned beneficially immediately before death to the extent 
 61.9   necessary to discharge any such claims and charges remaining 
 61.10  unpaid after the application of the assets of the decedent's 
 61.11  estate.  No proceeding to assert this liability shall be 
 61.12  commenced unless by the personal representative unless the 
 61.13  personal representative has received a written demand by a 
 61.14  surviving spouse, a creditor or one acting for a minor dependent 
 61.15  child of the decedent, and no proceeding shall be commenced 
 61.16  later than two years following the death of the decedent.  Sums 
 61.17  recovered by the personal representative shall be administered 
 61.18  as part of the decedent's estate.  This section shall not affect 
 61.19  the right of a financial institution to make payment on 
 61.20  multiple-party accounts according to the terms thereof, or make 
 61.21  it liable to the estate of a deceased party unless, before 
 61.22  payment, the institution has been served with process in a 
 61.23  proceeding by the personal representative or a county agency 
 61.24  with a claim authorized by section 256B.15. 
 61.25     Sec. 36.  Minnesota Statutes 1994, section 550.37, 
 61.26  subdivision 14, is amended to read: 
 61.27     Subd. 14.  [PUBLIC ASSISTANCE.] All relief based on need, 
 61.28  and the earnings or salary of a person who is a recipient of 
 61.29  relief based on need, shall be exempt from all claims of 
 61.30  creditors including any contractual setoff or security interest 
 61.31  asserted by a financial institution.  For the purposes of this 
 61.32  chapter, relief based on need includes AFDC, general assistance 
 61.33  medical care, supplemental security income, medical assistance, 
 61.34  Minnesota supplemental assistance, and general assistance.  The 
 61.35  salary or earnings of any debtor who is or has been a an 
 61.36  eligible recipient of relief based on need, or an inmate of a 
 62.1   correctional institution shall, upon the debtor's return to 
 62.2   private employment or farming after having been a an eligible 
 62.3   recipient of relief based on need, or an inmate of a 
 62.4   correctional institution, be exempt from attachment, 
 62.5   garnishment, or levy of execution for a period of six months 
 62.6   after the debtor's return to employment or farming and after all 
 62.7   public assistance for which eligibility existed has been 
 62.8   terminated.  The exemption provisions contained in this 
 62.9   subdivision also apply for 60 days after deposit in any 
 62.10  financial institution, whether in a single or joint account.  In 
 62.11  tracing the funds, the first-in first-out method of accounting 
 62.12  shall be used.  The burden of establishing that funds are exempt 
 62.13  rests upon the debtor.  Agencies distributing relief and the 
 62.14  correctional institutions shall, at the request of creditors, 
 62.15  inform them whether or not any debtor has been a an eligible 
 62.16  recipient of relief based on need, or an inmate of a 
 62.17  correctional institution, within the preceding six months. 
 62.18     Sec. 37.  [MCLEOD COUNTY; COUNTY OFFICES OUTSIDE COUNTY 
 62.19  SEAT.] 
 62.20     Notwithstanding Minnesota Statutes, section 382.04 to the 
 62.21  contrary, the McLeod county auditor, treasurer, social service 
 62.22  director, and recorder may temporarily office at a location in 
 62.23  Glencoe township.  The authority provided in this section 
 62.24  expires six years after final enactment. 
 62.25     Sec. 38.  [WAIVER REQUEST; GRANDPARENT EXCLUSION FROM 
 62.26  LICENSURE.] 
 62.27     The commissioner of human services shall seek a federal 
 62.28  waiver to allow the exclusion of grandparents from the foster 
 62.29  care licensing requirements.  If the waiver is granted, 
 62.30  notwithstanding Minnesota Statutes, section 245A.03, the 
 62.31  commissioner may exclude grandparents from foster care 
 62.32  licensure.  The commissioner shall recommend to the legislature 
 62.33  in the legislative session following the approval of the waiver, 
 62.34  related, necessary changes in the law. 
 62.35     Sec. 39.  [REPEALER.] 
 62.36     Minnesota Statutes 1994, section 256E.06, subdivisions 12 
 63.1   and 13, are repealed. 
 63.2      Sec. 40.  [EFFECTIVE DATES.] 
 63.3      Subdivision 1.  Sections 5 (245A.03, subdivision 2a), 6 
 63.4   (245A.035, subdivisions 1 to 6), 7 to 10 (245A.04, subdivisions 
 63.5   3, 3b, 7, and 9), 11 to 13 (245A.06, subdivisions 2, 4, and 7), 
 63.6   14 (245A.07, subdivision 3), and 20 (245A.14, subdivision 6), 
 63.7   are effective the day following final enactment. 
 63.8      Subd. 2.  Under Minnesota Statutes, section 645.023, 
 63.9   subdivision 1, clause (a), section 32, takes effect, without 
 63.10  local approval, the day following final enactment. 
 63.11                             ARTICLE 3 
 63.12                   LIFE SKILLS; SELF-SUFFICIENCY 
 63.13     Section 1.  Minnesota Statutes 1994, section 246.23, 
 63.14  subdivision 2, is amended to read: 
 63.15     Subd. 2.  [CHEMICAL DEPENDENCY TREATMENT.] The commissioner 
 63.16  shall maintain a regionally based, state-administered system of 
 63.17  chemical dependency programs.  Counties may refer individuals 
 63.18  who are eligible for services under chapter 254B to the chemical 
 63.19  dependency units in the regional treatment centers.  A 15 
 63.20  percent county share of the per diem cost of treatment is 
 63.21  required for individuals served within the treatment capacity 
 63.22  funded by direct legislative appropriation.  By July 1, 1991, 
 63.23  the commissioner shall establish criteria for admission to the 
 63.24  chemical dependency units that will maximize federal and private 
 63.25  funding sources, fully utilize the regional treatment center 
 63.26  capacity, and make state-funded treatment capacity available to 
 63.27  counties on an equitable basis.  The admission criteria may be 
 63.28  adopted without rulemaking.  Existing rules governing placements 
 63.29  under chapters 254A and 254B do not apply to admissions to the 
 63.30  capacity funded by direct appropriation.  Private and 
 63.31  third-party collections and payments are appropriated to the 
 63.32  commissioner for the operation of the chemical dependency 
 63.33  units.  In addition to the chemical dependency treatment 
 63.34  capacity funded by direct legislative appropriation, the 
 63.35  regional treatment centers may provide treatment to additional 
 63.36  individuals whose treatment is paid for out of the chemical 
 64.1   dependency consolidated treatment fund under chapter 254B, in 
 64.2   which case placement rules adopted under chapter 254B apply,; to 
 64.3   those individuals who are ineligible but committed for treatment 
 64.4   under chapter 253B as provided in section 254B.05, subdivision 
 64.5   4; or to individuals covered through other nonstate payment 
 64.6   sources.  
 64.7      Sec. 2.  Minnesota Statutes 1994, section 252.275, 
 64.8   subdivision 3, is amended to read: 
 64.9      Subd. 3.  [REIMBURSEMENT.] Counties shall be reimbursed for 
 64.10  all expenditures made pursuant to subdivision 1 at a rate of 70 
 64.11  percent, up to the allocation determined pursuant to 
 64.12  subdivisions 4, 4a, and 4b.  However, the commissioner shall not 
 64.13  reimburse costs of services for any person if the costs exceed 
 64.14  the state share of the average medical assistance costs for 
 64.15  services provided by intermediate care facilities for a person 
 64.16  with mental retardation or a related condition for the same 
 64.17  fiscal year, and shall not reimburse costs of a one-time living 
 64.18  allowance for any person if the costs exceed $1,500 in a state 
 64.19  fiscal year.  For the biennium ending June 30, 1993, the 
 64.20  commissioner shall not reimburse costs in excess of the 85th 
 64.21  percentile of hourly service costs based upon the cost 
 64.22  information supplied to the legislature in the proposed budget 
 64.23  for the biennium.  The commissioner may make payments to each 
 64.24  county in quarterly installments.  The commissioner may certify 
 64.25  an advance of up to 25 percent of the allocation.  Subsequent 
 64.26  payments shall be made on a reimbursement basis for reported 
 64.27  expenditures and may be adjusted for anticipated spending 
 64.28  patterns.  
 64.29     Sec. 3.  Minnesota Statutes 1994, section 252.275, 
 64.30  subdivision 4, is amended to read: 
 64.31     Subd. 4.  [FORMULA.] Effective January 1, 1992, The 
 64.32  commissioner shall allocate funds on a calendar year basis.  For 
 64.33  calendar year 1992, funds shall be allocated based on each 
 64.34  county's portion of the statewide reimbursement received under 
 64.35  this section for state fiscal year 1991.  For subsequent 
 64.36  calendar years, funds shall be Beginning with the calendar year 
 65.1   in the 1996 grant period, funds shall be allocated first in 
 65.2   amounts equal to each county's guaranteed floor according to 
 65.3   subdivision 4b, with any remaining available funds allocated 
 65.4   based on each county's portion of the statewide expenditures 
 65.5   eligible for reimbursement under this section during the 12 
 65.6   months ending on June 30 of the preceding calendar year. 
 65.7      If the legislature appropriates funds for special purposes, 
 65.8   the commissioner may allocate the funds based on proposals 
 65.9   submitted by the counties to the commissioner in a format 
 65.10  prescribed by the commissioner.  Nothing in this section 
 65.11  prevents a county from using other funds to pay for additional 
 65.12  costs of semi-independent living services. 
 65.13     Sec. 4.  Minnesota Statutes 1994, section 252.275, 
 65.14  subdivision 8, is amended to read: 
 65.15     Subd. 8.  [USE OF FEDERAL FUNDS AND TRANSFER OF FUNDS TO 
 65.16  MEDICAL ASSISTANCE.] (a) The commissioner shall make every 
 65.17  reasonable effort to maximize the use of federal funds for 
 65.18  semi-independent living services. 
 65.19     (b) The commissioner shall reduce the payments to be made 
 65.20  under this section to each county from January 1, 1994 to June 
 65.21  30, 1996, by the amount of the state share of medical assistance 
 65.22  reimbursement for services other than residential services 
 65.23  provided under the home and community-based waiver program under 
 65.24  section 256B.092 from January 1, 1994 to June 30, 1996, for 
 65.25  clients for whom the county is financially responsible and who 
 65.26  have been transferred by the county from the semi-independent 
 65.27  living services program to the home and community-based waiver 
 65.28  program.  Unless otherwise specified, all reduced amounts shall 
 65.29  be transferred to the medical assistance state account. 
 65.30     (c) For fiscal year 1997, the base appropriation available 
 65.31  under this section shall be reduced by the amount of the state 
 65.32  share of medical assistance reimbursement for services other 
 65.33  than residential services provided under the home and 
 65.34  community-based waiver program authorized in section 256B.092 
 65.35  from January 1, 1995 to December 31, 1995, for persons who have 
 65.36  been transferred from the semi-independent living services 
 66.1   program to the home and community-based waiver program.  The 
 66.2   base appropriation for the medical assistance state account 
 66.3   shall be increased by the same amount. 
 66.4      (d) For purposes of calculating the guaranteed floor under 
 66.5   subdivision 4b and to establish the calendar year 1996 
 66.6   allocations, each county's original allocation for calendar year 
 66.7   1995 shall be reduced by the amount transferred to the state 
 66.8   medical assistance account under paragraph (b) during the six 
 66.9   months ending on June 30, 1995.  For purposes of calculating the 
 66.10  guaranteed floor under subdivision 4b and to establish the 
 66.11  calendar year 1997 allocations, each county's original 
 66.12  allocation for calendar year 1996 shall be reduced by the amount 
 66.13  transferred to the state medical assistance account under 
 66.14  paragraph (b) during the six months ending on June 30, 1996 
 66.15  December 31, 1995. 
 66.16     Sec. 5.  Minnesota Statutes 1994, section 252.292, 
 66.17  subdivision 4, is amended to read: 
 66.18     Subd. 4.  [FACILITY RATES.] For purposes of this section, 
 66.19  the commissioner shall establish payment rates under section 
 66.20  256B.501 and Minnesota Rules, parts 9553.0010 to 9553.0080, 
 66.21  except that, in order to facilitate an orderly transition of 
 66.22  residents from community intermediate care facilities for 
 66.23  persons with mental retardation or related conditions to 
 66.24  services provided under the home and community-based services 
 66.25  program, the commissioner may, in a contract with the provider, 
 66.26  modify the effect of provisions in Minnesota Rules, parts 
 66.27  9553.0010 to 9553.0080, as stated in clauses (a) to (i): 
 66.28     (a) extend the interim and settle-up rate provisions to 
 66.29  include facilities covered by this section; 
 66.30     (b) extend the length of the interim period but not to 
 66.31  exceed 24 12 months.  The commissioner may grant a variance to 
 66.32  exceed the 24-month 12-month interim period, as necessary, for 
 66.33  facilities which are licensed and certified to serve more than 
 66.34  99 persons.  In no case shall the commissioner approve an 
 66.35  interim period which exceeds 36 24 months; 
 66.36     (c) waive the investment per bed limitations for the 
 67.1   interim period and the settle-up rate; 
 67.2      (d) limit the amount of reimbursable expenses related to 
 67.3   the acquisition of new capital assets; 
 67.4      (e) prohibit the acquisition of additional capital debt or 
 67.5   refinancing of existing capital debt unless prior approval is 
 67.6   obtained from the commissioner; 
 67.7      (f) establish an administrative operating cost limitation 
 67.8   for the interim period and the settle-up rate; 
 67.9      (g) require the retention of financial and statistical 
 67.10  records until the commissioner has audited the interim period 
 67.11  and the settle-up rate; 
 67.12     (h) require that the interim period be audited by a 
 67.13  certified or licensed public accounting firm; or 
 67.14     (i) change any other provision to which all parties to the 
 67.15  contract agree. 
 67.16     Sec. 6.  Minnesota Statutes 1994, section 252.46, 
 67.17  subdivision 1, is amended to read: 
 67.18     Subdivision 1.  [RATES.] (a) Payment rates to vendors, 
 67.19  except regional centers, for county-funded day training and 
 67.20  habilitation services and transportation provided to persons 
 67.21  receiving day training and habilitation services established by 
 67.22  a county board are governed by subdivisions 2 to 19.  The 
 67.23  commissioner shall approve the following three payment rates for 
 67.24  services provided by a vendor: 
 67.25     (1) a full-day service rate for persons who receive at 
 67.26  least six service hours a day, including the time it takes to 
 67.27  transport the person to and from the service site; 
 67.28     (2) a partial-day service rate that must not exceed 75 
 67.29  percent of the full-day service rate for persons who receive 
 67.30  less than a full day of service; and 
 67.31     (3) a transportation rate for providing, or arranging and 
 67.32  paying for, transportation of a person to and from the person's 
 67.33  residence to the service site.  
 67.34     (b) The commissioner may also approve an hourly job-coach, 
 67.35  follow-along rate for services provided by one employee at or en 
 67.36  route to or from community locations to supervise, support, and 
 68.1   assist one person receiving the vendor's services to learn 
 68.2   job-related skills necessary to obtain or retain employment when 
 68.3   and where no other persons receiving services are present and 
 68.4   when all the following criteria are met: 
 68.5      (1) the vendor requests and the county recommends the 
 68.6   optional rate; 
 68.7      (2) the service is prior authorized by the county on the 
 68.8   medicaid management information system for no more than 414 
 68.9   hours in a 12-month period and the daily per person charge to 
 68.10  medical assistance does not exceed the vendor's approved full 
 68.11  day plus transportation rates; 
 68.12     (3) separate full day, partial day, and transportation 
 68.13  rates are not billed for the same person on the same day; 
 68.14     (4) the approved hourly rate does not exceed the sum of the 
 68.15  vendor's current average hourly direct service wage, including 
 68.16  fringe benefits and taxes, plus a component equal to the 
 68.17  vendor's average hourly nondirect service wage expenses; and 
 68.18     (5) the actual revenue received for provision of hourly 
 68.19  job-coach, follow-along services is subtracted from the vendor's 
 68.20  total expenses for the same time period and those adjusted 
 68.21  expenses are used for determining recommended full day and 
 68.22  transportation payment rates under subdivision 5 in accordance 
 68.23  with the limitations in subdivision 3. 
 68.24     (c) Medical assistance rates for home and community-based 
 68.25  service provided under section 256B.501, subdivision 4, by 
 68.26  licensed vendors of day training and habilitation services must 
 68.27  not be greater than the rates for the same services established 
 68.28  by counties under sections 252.40 to 252.47.  For very dependent 
 68.29  persons with special needs the commissioner may approve an 
 68.30  exception to the approved payment rate under section 256B.501, 
 68.31  subdivision 4 or 8. 
 68.32     Sec. 7.  Minnesota Statutes 1994, section 252.46, 
 68.33  subdivision 3, is amended to read: 
 68.34     Subd. 3.  [RATE MAXIMUM.] Unless a variance is granted 
 68.35  under subdivision 6, the maximum payment rates for each vendor 
 68.36  for a calendar year must be equal to the payment rates approved 
 69.1   by the commissioner for that vendor in effect December 1 of the 
 69.2   previous calendar year.  The commissioner of finance shall 
 69.3   include as a budget change request in each biennial detailed 
 69.4   expenditure budget submitted to the legislature under section 
 69.5   16A.11 annual inflation adjustments in reimbursement rates for 
 69.6   each vendor, based upon the projected percentage change in the 
 69.7   urban consumer price index, all items, published by the United 
 69.8   States Department of Labor, for the upcoming calendar year over 
 69.9   the current calendar year.  The commissioner shall not provide 
 69.10  an annual inflation adjustment for the biennium ending June 30, 
 69.11  1993. 
 69.12     Sec. 8.  Minnesota Statutes 1994, section 252.46, 
 69.13  subdivision 6, is amended to read: 
 69.14     Subd. 6.  [VARIANCES.] (a) A variance from the minimum or 
 69.15  maximum payment rates in subdivisions 2 and 3 may be granted by 
 69.16  the commissioner when the vendor requests and the county board 
 69.17  submits to the commissioner a written variance request on forms 
 69.18  supplied by the commissioner with the recommended payment rates. 
 69.19  A variance to the rate maximum may be utilized for costs 
 69.20  associated with compliance with state administrative rules, 
 69.21  compliance with court orders, capital costs required for 
 69.22  continued licensure, increased insurance costs, start-up and 
 69.23  conversion costs for supported employment, direct service staff 
 69.24  salaries and benefits, transportation, and other program related 
 69.25  costs when any of the criteria in clauses (1) to (3) (4) is also 
 69.26  met: 
 69.27     (1) change is necessary to comply with licensing citations; 
 69.28     (2) a licensed vendor currently serving fewer than 70 
 69.29  persons with payment rates of 80 percent or less of the 
 69.30  statewide average rates and with clients meeting the behavioral 
 69.31  or medical criteria under clause (3) approved by the 
 69.32  commissioner as a significant program change under section 
 69.33  252.28; 
 69.34     (3) a significant change is approved by the commissioner 
 69.35  under section 252.28 that is necessary to provide authorized 
 69.36  services to a new client or clients with very severe 
 70.1   self-injurious or assaultive behavior, or medical conditions 
 70.2   requiring delivery of physician-prescribed medical interventions 
 70.3   requiring one-to-one staffing for at least 15 minutes each time 
 70.4   they are performed, or to a new client or clients directly 
 70.5   discharged to the vendor's program from a regional treatment 
 70.6   center; or 
 70.7      (3) a significant increase in the average level of (4) 
 70.8   there is a need to maintain required staffing is needed levels 
 70.9   in order to provide authorized services approved by the 
 70.10  commissioner under section 252.28, that is necessitated by 
 70.11  a significant and permanent decrease in licensed capacity 
 70.12  or loss of clientele when counties choose alternative services 
 70.13  under Laws 1992, chapter 513, article 9, section 41. 
 70.14     The county shall review the adequacy of services provided 
 70.15  by vendors whose payment rates are 80 percent or more of the 
 70.16  statewide average rates and 50 percent or more of the vendor's 
 70.17  clients meet the behavioral or medical criteria in clause (3). 
 70.18     A variance under this paragraph may be approved only if the 
 70.19  costs to the medical assistance program do not exceed the 
 70.20  medical assistance costs for all clients served by the 
 70.21  alternatives and all clients remaining in the existing services. 
 70.22     (b) A variance to the rate minimum may be granted when (1) 
 70.23  the county board contracts for increased services from a vendor 
 70.24  and for some or all individuals receiving services from the 
 70.25  vendor lower per unit fixed costs result or (2) when the actual 
 70.26  costs of delivering authorized service over a 12-month contract 
 70.27  period have decreased. 
 70.28     (c) The written variance request under this subdivision 
 70.29  must include documentation that all the following criteria have 
 70.30  been met: 
 70.31     (1) The commissioner and the county board have both 
 70.32  conducted a review and have identified a need for a change in 
 70.33  the payment rates and recommended an effective date for the 
 70.34  change in the rate. 
 70.35     (2) The vendor documents efforts to reallocate current 
 70.36  staff and any additional staffing needs cannot be met by using 
 71.1   temporary special needs rate exceptions under Minnesota Rules, 
 71.2   parts 9510.1020 to 9510.1140. 
 71.3      (3) The vendor documents that financial resources have been 
 71.4   reallocated before applying for a variance.  No variance may be 
 71.5   granted for equipment, supplies, or other capital expenditures 
 71.6   when depreciation expense for repair and replacement of such 
 71.7   items is part of the current rate. 
 71.8      (4) For variances related to loss of clientele, the vendor 
 71.9   documents the other program and administrative expenses, if any, 
 71.10  that have been reduced. 
 71.11     (5) The county board submits verification of the conditions 
 71.12  for which the variance is requested, a description of the nature 
 71.13  and cost of the proposed changes, and how the county will 
 71.14  monitor the use of money by the vendor to make necessary changes 
 71.15  in services.  
 71.16     (6) The county board's recommended payment rates do not 
 71.17  exceed 95 percent of the greater of 125 percent of the current 
 71.18  statewide median or 125 percent of the regional average payment 
 71.19  rates, whichever is higher, for each of the regional commission 
 71.20  districts under sections 462.381 to 462.396 in which the vendor 
 71.21  is located except for the following:  when a variance is 
 71.22  recommended to allow authorized service delivery to new clients 
 71.23  with severe self-injurious or assaultive behaviors or with 
 71.24  medical conditions requiring delivery of physician prescribed 
 71.25  medical interventions, or to persons being directly discharged 
 71.26  from a regional treatment center to the vendor's program, those 
 71.27  persons must be assigned a payment rate of 200 percent of the 
 71.28  current statewide average rates.  All other clients receiving 
 71.29  services from the vendor must be assigned a payment rate equal 
 71.30  to the vendor's current rate unless the vendor's current rate 
 71.31  exceeds 95 percent of 125 percent of the statewide median or 125 
 71.32  percent of the regional average payment rates, whichever is 
 71.33  higher.  When the vendor's rates exceed 95 percent of 125 
 71.34  percent of the statewide median or 125 percent of the regional 
 71.35  average rates, the maximum rates assigned to all other clients 
 71.36  must be equal to the greater of 95 percent of 125 percent of the 
 72.1   statewide median or 125 percent of the regional average rates.  
 72.2   The maximum payment rate that may be recommended for the vendor 
 72.3   under these conditions is determined by multiplying the number 
 72.4   of clients at each limit by the rate corresponding to that limit 
 72.5   and then dividing the sum by the total number of clients. 
 72.6      (7) The vendor has not received a variance under this 
 72.7   subdivision in the past 12 months.  
 72.8      (d) The commissioner shall have 60 calendar days from the 
 72.9   date of the receipt of the complete request to accept or reject 
 72.10  it, or the request shall be deemed to have been granted.  If the 
 72.11  commissioner rejects the request, the commissioner shall state 
 72.12  in writing the specific objections to the request and the 
 72.13  reasons for its rejection. 
 72.14     Sec. 9.  Minnesota Statutes 1994, section 252.46, 
 72.15  subdivision 17, is amended to read: 
 72.16     Subd. 17.  [HOURLY RATE STRUCTURE.] Counties participating 
 72.17  as host counties under the pilot study of hourly rates 
 72.18  established under Laws 1988, chapter 689, article 2, section 
 72.19  117, may recommend continuation of the hourly rates for 
 72.20  participating vendors.  The recommendation must be made annually 
 72.21  under subdivision 5 and according to the methods and standards 
 72.22  provided by the commissioner.  The commissioner shall approve 
 72.23  the hourly rates when service authorization, billing, and 
 72.24  payment for services is possible through the Medicaid management 
 72.25  information system and the other criteria in this subdivision 
 72.26  are met.  Counties and vendors operating under the pilot study 
 72.27  of hourly rates established under Laws 1988, chapter 689, 
 72.28  article 2, section 117, shall work with the commissioner to 
 72.29  translate the hourly rates and actual expenditures into rates 
 72.30  meeting the criteria in subdivisions 1 to 16 unless hourly rates 
 72.31  are approved under this subdivision.  If the rates meeting the 
 72.32  criteria in subdivisions 1 to 16 are lower than the county's or 
 72.33  vendor's current rate, the county or vendor must continue to 
 72.34  receive the current rate. 
 72.35     Sec. 10.  Minnesota Statutes 1994, section 252.46, is 
 72.36  amended by adding a subdivision to read: 
 73.1      Subd. 19.  [VENDOR APPEALS.] With the concurrence of the 
 73.2   county board, a vendor may appeal the commissioner's rejection 
 73.3   of a variance request which has been submitted by the county 
 73.4   under subdivision 6 and may appeal the commissioner's denial 
 73.5   under subdivision 9 of a rate which has been recommended by the 
 73.6   county.  To appeal, the vendor and county board must file a 
 73.7   written notice of appeal with the commissioner.  The notice of 
 73.8   appeal must be filed or received by the commissioner within 45 
 73.9   days of the postmark date on the commissioner's notification to 
 73.10  the vendor and county agency that a variance request or county 
 73.11  recommended rate has been denied.  The notice of appeal must 
 73.12  specify the reasons for the appeal, the dollar amount in 
 73.13  dispute, and the basis in statute or rule for challenging the 
 73.14  commissioner's decision. 
 73.15     Within 45 days of receipt of the notice of appeal, the 
 73.16  commissioner must convene a reconciliation conference to attempt 
 73.17  to resolve the rate dispute.  If the dispute is not resolved to 
 73.18  the satisfaction of the parties, the parties may initiate a 
 73.19  contested case proceeding under sections 14.57 to 14.69.  In a 
 73.20  contested case hearing held under this section, the appealing 
 73.21  party must demonstrate by a preponderance of the evidence that 
 73.22  the commissioner incorrectly applied the governing law or 
 73.23  regulations, or that the commissioner improperly exercised the 
 73.24  commissioner's discretion, in refusing to grant a variance or in 
 73.25  refusing to adopt a county recommended rate. 
 73.26     Until the appeal is fully resolved, payments must continue 
 73.27  at the existing rate pending the appeal.  Retroactive payments 
 73.28  consistent with the final decision shall be made after the 
 73.29  appeal is fully resolved. 
 73.30     Sec. 11.  Minnesota Statutes 1994, section 252.46, is 
 73.31  amended by adding a subdivision to read: 
 73.32     Subd. 20.  [STUDY OF DAY TRAINING AND HABILITATION 
 73.33  VENDORS.] The commissioner shall study the feasibility of 
 73.34  grouping vendors of similar size, location, direct service 
 73.35  staffing needs or performance outcomes to establish payment rate 
 73.36  limits that define cost-effective service.  Based on the 
 74.1   conclusions of the feasibility study the department shall 
 74.2   consider developing a method to redistribute dollars from less 
 74.3   cost effective to more cost-effective services based on vendor 
 74.4   achievement of performance outcomes.  The department shall 
 74.5   report to the legislature by January 15, 1996, with results of 
 74.6   the study and recommendations for further action.  The 
 74.7   department shall consult with an advisory committee representing 
 74.8   counties, service consumers, vendors, and the legislature. 
 74.9      Sec. 12.  Minnesota Statutes 1994, section 254A.17, 
 74.10  subdivision 3, is amended to read: 
 74.11     Subd. 3.  [STATEWIDE DETOXIFICATION TRANSPORTATION 
 74.12  PROGRAM.] The commissioner shall provide grants to counties, 
 74.13  Indian reservations, other nonprofit agencies, or local 
 74.14  detoxification programs for provision of transportation of 
 74.15  intoxicated individuals to detoxification programs, to open 
 74.16  shelters, and to secure shelters as defined in section 254A.085 
 74.17  and shelters serving intoxicated persons.  In state fiscal years 
 74.18  1994 and, 1995, and 1996, funds shall be allocated to counties 
 74.19  in proportion to each county's allocation in fiscal year 1993.  
 74.20  In subsequent fiscal years, funds shall be allocated among 
 74.21  counties annually in proportion to each county's average number 
 74.22  of detoxification admissions for the prior two years, except 
 74.23  that no county shall receive less than $400.  Unless a county 
 74.24  has approved a grant of funds under this section, the 
 74.25  commissioner shall make quarterly payments of detoxification 
 74.26  funds to a county only after receiving an invoice describing the 
 74.27  number of persons transported and the cost of transportation 
 74.28  services for the previous quarter.  A county must make a good 
 74.29  faith effort to provide the transportation service through the 
 74.30  most cost-effective community-based agencies or organizations 
 74.31  eligible to provide the service.  The program administrator and 
 74.32  all staff of the program must report to the office of the 
 74.33  ombudsman for mental health and mental retardation within 24 
 74.34  hours of its occurrence, any serious injury, as defined in 
 74.35  section 245.91, subdivision 6, or the death of a person admitted 
 74.36  to the shelter.  The ombudsman shall acknowledge in writing the 
 75.1   receipt of all reports made to the ombudsman's office under this 
 75.2   section.  Acknowledgment must be mailed to the facility and to 
 75.3   the county social service agency within five working days of the 
 75.4   day the report was made.  In addition, the program administrator 
 75.5   and staff of the program must comply with all of the 
 75.6   requirements of section 626.557, the vulnerable adults act. 
 75.7      Sec. 13.  Minnesota Statutes 1994, section 254B.02, 
 75.8   subdivision 1, is amended to read: 
 75.9      Subdivision 1.  [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 
 75.10  The chemical dependency funds appropriated for allocation shall 
 75.11  be placed in a special revenue account.  For the fiscal year 
 75.12  beginning July 1, 1987, funds shall be transferred to operate 
 75.13  the vendor payment, invoice processing, and collections system 
 75.14  for one year.  The commissioner shall annually transfer funds 
 75.15  from the chemical dependency fund to pay for operation of the 
 75.16  drug and alcohol abuse normative evaluation system and to pay 
 75.17  for all costs incurred by adding two positions for licensing of 
 75.18  chemical dependency treatment and rehabilitation programs 
 75.19  located in hospitals for which funds are not otherwise 
 75.20  appropriated.  The commissioner shall annually divide the money 
 75.21  available in the chemical dependency fund that is not held in 
 75.22  reserve by counties from a previous allocation.  Twelve percent 
 75.23  of the remaining money must be reserved for treatment of 
 75.24  American Indians by eligible vendors under section 254B.05.  The 
 75.25  remainder of the money must be allocated among the counties 
 75.26  according to the following formula, using state demographer data 
 75.27  and other data sources determined by the commissioner: 
 75.28     (a) The county non-Indian and over age 14 per capita-months 
 75.29  of eligibility for aid to families with dependent children, 
 75.30  general assistance, and medical assistance is divided by the 
 75.31  total state non-Indian and over age 14 per capita-months of 
 75.32  eligibility to determine the caseload factor for each county. 
 75.33     (b) The average median married couple income for the 
 75.34  previous three years for the state is divided by the average 
 75.35  median married couple income for the previous three years for 
 75.36  each county to determine the income factor.  
 76.1      (c) The non-Indian and over age 14 population of the county 
 76.2   is multiplied by the sum of the income factor and the caseload 
 76.3   factor to determine the adjusted population.  
 76.4      (a) For purposes of this formula, American Indians and 
 76.5   children under age 14 are subtracted from the population of each 
 76.6   county to determine the restricted population. 
 76.7      (b) The amount of chemical dependency fund expenditures for 
 76.8   entitled persons for services not covered by prepaid plans 
 76.9   governed by section 256B.69 in the previous year is divided by 
 76.10  the amount of chemical dependency fund expenditures for entitled 
 76.11  persons for all services to determine the proportion of exempt 
 76.12  service expenditures for each county. 
 76.13     (c) The prepaid plan months of eligibility is multiplied by 
 76.14  the proportion of exempt service expenditures to determine the 
 76.15  adjusted prepaid plan months of eligibility for each county. 
 76.16     (d) The adjusted prepaid plan months of eligibility is 
 76.17  added to the number of restricted population fee for service 
 76.18  months of eligibility for aid to families with dependent 
 76.19  children, general assistance, and medical assistance and divided 
 76.20  by the county restricted population to determine county per 
 76.21  capita months of covered service eligibility. 
 76.22     (e) The number of adjusted prepaid plan months of 
 76.23  eligibility for the state is added to the number of fee for 
 76.24  service months of eligibility for aid to families with dependent 
 76.25  children, general assistance, and medical assistance for the 
 76.26  state restricted population and divided by the state restricted 
 76.27  population to determine state per capita months of covered 
 76.28  service eligibility. 
 76.29     (f) The county per capita months of covered service 
 76.30  eligibility is divided by the state per capita months of covered 
 76.31  service eligibility to determine the county welfare caseload 
 76.32  factor. 
 76.33     (g) The median married couple income for the most recent 
 76.34  three-year period available for the state is divided by the 
 76.35  median married couple income for the same period for each county 
 76.36  to determine the income factor for each county. 
 77.1      (h) The county restricted population is multiplied by the 
 77.2   sum of the county welfare caseload factor and the county income 
 77.3   factor to determine the adjusted population. 
 77.4      (d) (i) $15,000 shall be allocated to each county.  
 77.5      (e) (j) The remaining funds shall be allocated proportional 
 77.6   to the county adjusted population. 
 77.7      Sec. 14.  Minnesota Statutes 1994, section 254B.05, 
 77.8   subdivision 1, is amended to read: 
 77.9      Subdivision 1.  [LICENSURE REQUIRED.] Programs licensed by 
 77.10  the commissioner are eligible vendors.  Hospitals may apply for 
 77.11  and receive licenses to be eligible vendors, notwithstanding the 
 77.12  provisions of section 245A.03.  American Indian programs located 
 77.13  on federally recognized tribal lands that provide chemical 
 77.14  dependency primary treatment, extended care, transitional 
 77.15  residence, or outpatient treatment services, and are licensed by 
 77.16  tribal government are eligible vendors.  Detoxification programs 
 77.17  are not eligible vendors.  Programs that are not licensed as a 
 77.18  chemical dependency residential or nonresidential treatment 
 77.19  program by the commissioner or by tribal government are not 
 77.20  eligible vendors.  To be eligible for payment under the 
 77.21  Consolidated Chemical Dependency Treatment Fund, a vendor must 
 77.22  participate in the Drug and Alcohol Abuse Normative Evaluation 
 77.23  System and the treatment accountability plan. 
 77.24     Sec. 15.  [256.476] [CONSUMER SUPPORT PROGRAM.] 
 77.25     Subdivision 1.  [PURPOSE AND GOALS.] The commissioner of 
 77.26  human services shall establish a consumer support grant program 
 77.27  to assist individuals with functional limitations and their 
 77.28  families in purchasing and securing supports which the 
 77.29  individuals need to live as independently and productively in 
 77.30  the community as possible.  The commissioner and local agencies 
 77.31  shall jointly develop an implementation plan which must include 
 77.32  a way to resolve the issues related to county liability.  The 
 77.33  program shall: 
 77.34     (1) make support grants available to individuals or 
 77.35  families as an effective alternative to existing programs and 
 77.36  services, such as the developmental disability family support 
 78.1   program, the alternative care program, personal care attendant 
 78.2   services, home health aide services, and nursing facility 
 78.3   services; 
 78.4      (2) provide consumers more control, flexibility, and 
 78.5   responsibility over the needed supports; 
 78.6      (3) promote local program management and decision-making; 
 78.7   and 
 78.8      (4) encourage the use of informal and typical community 
 78.9   supports. 
 78.10     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
 78.11  following terms have the meanings given them: 
 78.12     (a) "County board" means the county board of commissioners 
 78.13  for the county of financial responsibility as defined in section 
 78.14  256G.02, subdivision 4, or its designated representative.  When 
 78.15  a human services board has been established under sections 
 78.16  402.01 to 402.10, it shall be considered the county board for 
 78.17  the purposes of this section. 
 78.18     (b) "Family" means the person's birth parents, adoptive 
 78.19  parents or stepparents, siblings or stepsiblings, children or 
 78.20  stepchildren, grandparents, grandchildren, niece, nephew, aunt, 
 78.21  uncle, or spouse.  For the purposes of this section, a family 
 78.22  member is at least 18 years of age. 
 78.23     (c) "Functional limitations" means the long-term inability 
 78.24  to perform an activity or task in one or more areas of major 
 78.25  life activity, including self-care, understanding and use of 
 78.26  language, learning, mobility, self-direction, and capacity for 
 78.27  independent living.  For the purpose of this section, the 
 78.28  inability to perform an activity or task results from a mental, 
 78.29  emotional, psychological, sensory, or physical disability, 
 78.30  condition, or illness. 
 78.31     (d) "Informed choice" means a voluntary decision made by 
 78.32  the person or the person's legal representative, after becoming 
 78.33  familiarized with the alternatives to: 
 78.34     (1) select a preferred alternative from a number of 
 78.35  feasible alternatives; 
 78.36     (2) select an alternative which may be developed in the 
 79.1   future; and 
 79.2      (3) refuse any or all alternatives. 
 79.3      (e) "Local agency" means the local agency authorized by the 
 79.4   county board to carry out the provisions of this section. 
 79.5      (f) "Person" or "persons" means a person or persons meeting 
 79.6   the eligibility criteria in subdivision 3. 
 79.7      (g) "Responsible individual" means an individual designated 
 79.8   by the person or their legal representative to act on their 
 79.9   behalf.  This individual may be a family member, guardian, 
 79.10  representative payee, or other individual designated by the 
 79.11  person or their legal representative, if any, to assist in 
 79.12  purchasing and arranging for supports.  For the purposes of this 
 79.13  section, a responsible individual is at least 18 years of age. 
 79.14     (h) "Screening" means the screening of a person's service 
 79.15  needs under sections 256B.0911 and 256B.092. 
 79.16     (i) "Supports" means services, care, aids, home 
 79.17  modifications, or assistance purchased by the person or the 
 79.18  person's family.  Examples of supports include respite care, 
 79.19  assistance with daily living, and adaptive aids.  For the 
 79.20  purpose of this section, notwithstanding the provisions of 
 79.21  section 144A.43, supports purchased under the consumer support 
 79.22  program are not considered home care services. 
 79.23     Subd. 3.  [ELIGIBILITY TO APPLY FOR GRANTS.] (a) A person 
 79.24  is eligible to apply for a consumer support grant if the person 
 79.25  meets all of the following criteria: 
 79.26     (1) the person is eligible for medical assistance as 
 79.27  determined under sections 256B.055 and 256B.056 or the person is 
 79.28  eligible for alternative care services as determined under 
 79.29  section 256B.0913; 
 79.30     (2) the person is able to direct and purchase their own 
 79.31  care and supports, or the person has a family member, legal 
 79.32  representative, or other responsible individual who can purchase 
 79.33  and arrange supports on the person's behalf; 
 79.34     (3) the person has functional limitations, requires ongoing 
 79.35  supports to live in the community, and is at risk of or would 
 79.36  continue institutionalization without such supports; and 
 80.1      (4) the person will live in a home.  For the purpose of 
 80.2   this section, "home" means the person's own home or home of a 
 80.3   person's family member.  These homes are natural home settings 
 80.4   and are not licensed by the department of health or human 
 80.5   services. 
 80.6      (b) Persons may not concurrently receive a consumer support 
 80.7   grant if they are: 
 80.8      (1) receiving home and community-based services under 
 80.9   United States Code, title 42, section 1396h(c); personal care 
 80.10  attendant and home health aide services under section 256B.0625; 
 80.11  a developmental disability family support grant; or alternative 
 80.12  care services under section 256B.0913; or 
 80.13     (2) residing in an institutional or congregate care setting.
 80.14     (c) A person or person's family receiving a consumer 
 80.15  support grant shall not be charged a fee or premium by a local 
 80.16  agency for participating in the program.  A person or person's 
 80.17  family is not eligible for a consumer support grant if their 
 80.18  income is at a level where they are required to pay a parental 
 80.19  fee under sections 252.27, 256B.055, subdivision 12, and 256B.14 
 80.20  and rules adopted under those sections for medical assistance 
 80.21  services to a disabled child living with at least one parent. 
 80.22     Subd. 4.  [SUPPORT GRANTS; CRITERIA AND LIMITATIONS.] (a) A 
 80.23  county board may choose to participate in the consumer support 
 80.24  grant program.  If a county board chooses to participate in the 
 80.25  program, the local agency shall establish written procedures and 
 80.26  criteria to determine the amount and use of support grants.  
 80.27  These procedures must include, at least, the availability of 
 80.28  respite care, assistance with daily living, and adaptive aids.  
 80.29  The local agency may establish monthly or annual maximum amounts 
 80.30  for grants and procedures where exceptional resources may be 
 80.31  required to meet the health and safety needs of the person on a 
 80.32  time-limited basis. 
 80.33     (b) Support grants to a person or a person's family may be 
 80.34  provided through a monthly subsidy or lump sum payment basis and 
 80.35  be in the form of cash, voucher, or direct county payment to 
 80.36  vendor.  Support grant amounts must be determined by the local 
 81.1   agency.  Each service and item purchased with a support grant 
 81.2   must meet all of the following criteria:  
 81.3      (1) it must be over and above the normal cost of caring for 
 81.4   the person if the person did not have functional limitations; 
 81.5      (2) it must be directly attributable to the person's 
 81.6   functional limitations; 
 81.7      (3) it must enable a person or the person's family to delay 
 81.8   or prevent out-of-home placement of the person; and 
 81.9      (4) it must be consistent with the needs identified in the 
 81.10  service plan, when applicable. 
 81.11     (c) Items and services purchased with support grants must 
 81.12  be those for which there are no other public or private funds 
 81.13  available to the person or the person's family.  Fees assessed 
 81.14  to the person or the person's family for health and human 
 81.15  services are not reimbursable through the grant. 
 81.16     (d) In approving or denying applications, the local agency 
 81.17  shall consider the following factors:  
 81.18     (1) the extent and areas of the person's functional 
 81.19  limitations; 
 81.20     (2) the degree of need in the home environment for 
 81.21  additional support; and 
 81.22     (3) the potential effectiveness of the grant to maintain 
 81.23  and support the person in the family environment or the person's 
 81.24  own home. 
 81.25     (e) At the time of application to the program or screening 
 81.26  for other services, the person or the person's family shall be 
 81.27  provided sufficient information to ensure an informed choice of 
 81.28  alternatives by the person, the person's legal representative, 
 81.29  if any, or the person's family.  The application shall be made 
 81.30  to the local agency and shall specify the needs of the person 
 81.31  and family, the form and amount of grant requested, the items 
 81.32  and services to be reimbursed, and evidence of eligibility for 
 81.33  medical assistance or alternative care program. 
 81.34     (f) Upon approval of an application by the local agency and 
 81.35  agreement on a support plan for the person or person's family, 
 81.36  the local agency shall make grants to the person or the person's 
 82.1   family.  The grant shall be in an amount for the direct costs of 
 82.2   the services or supports outlined in the service agreement.  
 82.3      (g) Reimbursable costs shall not include costs for 
 82.4   resources already available, such as special education classes, 
 82.5   day training and habilitation, case management, other services 
 82.6   to which the person is entitled, medical costs covered by 
 82.7   insurance or other health programs, or other resources usually 
 82.8   available at no cost to the person or the person's family. 
 82.9      Subd. 5.  [REIMBURSEMENT, ALLOCATIONS, AND REPORTING.] (a) 
 82.10  For the purpose of transferring persons to the consumer support 
 82.11  grant program from specific programs or services, such as the 
 82.12  developmental disability family support program and alternative 
 82.13  care program, personal care attendant, home health aide, or 
 82.14  nursing facility services, the amount of funds transferred by 
 82.15  the commissioner between the developmental disability family 
 82.16  support program account, the alternative care account, the 
 82.17  medical assistance account, or the consumer support grant 
 82.18  account shall be based on each county's participation in 
 82.19  transferring persons to the consumer support grant program from 
 82.20  those programs and services. 
 82.21     (b) At the beginning of each fiscal year, county 
 82.22  allocations for consumer support grants shall be based on: 
 82.23     (1) the number of persons to whom the county board expects 
 82.24  to provide consumer supports grants; 
 82.25     (2) their eligibility for current program and services; 
 82.26     (3) the amount of nonfederal dollars expended on those 
 82.27  individuals for those programs and services; and 
 82.28     (4) projected dates when persons will start receiving 
 82.29  grants.  County allocations shall be adjusted periodically by 
 82.30  the commissioner based on the actual transfer of persons or 
 82.31  service openings, and the nonfederal dollars associated with 
 82.32  those persons or service openings, to the consumer support grant 
 82.33  program. 
 82.34     (c) The commissioner shall use up to five percent of each 
 82.35  county's allocation, as adjusted, for payments to that county 
 82.36  for administrative expenses, to be paid as a proportionate 
 83.1   addition to reported direct service expenditures. 
 83.2      (d) The commissioner may recover, suspend, or withhold 
 83.3   payments if the county board, local agency, or grantee does not 
 83.4   comply with the requirements of this section. 
 83.5      Subd. 6.  [RIGHT TO APPEAL.] Notice, appeal, and hearing 
 83.6   procedures shall be conducted in accordance with section 
 83.7   256.045.  The denial, suspension, or termination of services 
 83.8   under this program may be appealed by a recipient or applicant 
 83.9   under section 256.045, subdivision 3.  It is an absolute defense 
 83.10  to an appeal under this section, if the county board proves that 
 83.11  it followed the established written procedures and criteria and 
 83.12  determined that the grant could not be provided within the 
 83.13  county board's allocation of money for consumer support grants. 
 83.14     Subd. 7.  [FEDERAL FUNDS.] The commissioner and the 
 83.15  counties shall make reasonable efforts to maximize the use of 
 83.16  federal funds including funds available through grants and 
 83.17  federal waivers.  If federal funds are made available to the 
 83.18  consumer support grant program, the money shall be allocated to 
 83.19  the responsible county agency's consumer support grant fund. 
 83.20     Subd. 8.  [COMMISSIONER RESPONSIBILITIES.] The commissioner 
 83.21  shall: 
 83.22     (1) transfer and allocate funds pursuant to this section; 
 83.23     (2) determine allocations based on projected and actual 
 83.24  local agency use; 
 83.25     (3) monitor and oversee overall program spending; 
 83.26     (4) evaluate the effectiveness of the program; 
 83.27     (5) provide training and technical assistance for local 
 83.28  agencies and consumers to help identify potential applicants to 
 83.29  the program; and 
 83.30     (6) develop guidelines for local agency program 
 83.31  administration and consumer information. 
 83.32     Subd. 9.  [COUNTY BOARD RESPONSIBILITIES.] County boards 
 83.33  receiving funds under this section shall: 
 83.34     (1) determine the needs of persons and families for 
 83.35  services and supports; 
 83.36     (2) determine the eligibility for persons proposed for 
 84.1   program participation; 
 84.2      (3) approve items and services to be reimbursed and inform 
 84.3   families of their determination; 
 84.4      (4) issue support grants directly to or on behalf of 
 84.5   persons; 
 84.6      (5) submit quarterly financial reports and an annual 
 84.7   program report to the commissioner; 
 84.8      (6) coordinate services and supports with other programs 
 84.9   offered or made available to persons or their families; and 
 84.10     (7) provide assistance to persons or their families in 
 84.11  securing or maintaining supports, as needed. 
 84.12     Subd. 10.  [CONSUMER RESPONSIBILITIES.] Persons receiving 
 84.13  grants under this section shall: 
 84.14     (1) spend the grant money in a manner consistent with their 
 84.15  agreement with the local agency; 
 84.16     (2) notify the local agency of any necessary changes in the 
 84.17  grant or the items on which it is spent; 
 84.18     (3) notify the local agency of any decision made by the 
 84.19  person, the person's legal representative, or the person's 
 84.20  family that would change their eligibility for consumer support 
 84.21  grants; 
 84.22     (4) arrange and pay for supports; and 
 84.23     (5) inform the local agency of areas where they have 
 84.24  experienced difficulty securing or maintaining supports. 
 84.25     Sec. 16.  [256.973] [HOUSING FOR PERSONS WHO ARE ELDERLY, 
 84.26  PERSONS WITH PHYSICAL OR DEVELOPMENTAL DISABILITIES, AND 
 84.27  SINGLE-PARENT FAMILIES.] 
 84.28     Subdivision 1.  [HOME SHARING.] The home-sharing grant 
 84.29  program authorized by section 462A.05, subdivision 24, is 
 84.30  transferred from the Minnesota housing finance agency to the 
 84.31  department of human services.  The housing finance agency shall 
 84.32  administer the current grants that terminate on August 30, 
 84.33  1995.  The department of human services shall administer grants 
 84.34  funded after August 30, 1995.  The department of human services 
 84.35  may engage in housing programs, as defined by the agency, to 
 84.36  provide grants to housing sponsors who will provide a 
 85.1   home-sharing program for low- and moderate-income elderly, 
 85.2   persons with physical or developmental disabilities, or 
 85.3   single-parent families in urban and rural areas. 
 85.4      Subd. 2.  [MATCHING OWNERS AND TENANTS.] Housing sponsors 
 85.5   of home sharing programs, as defined by the agency, shall match 
 85.6   existing homeowners with prospective tenants who will contribute 
 85.7   either rent or services to the homeowner, where either the 
 85.8   homeowner or the prospective tenant is elderly, a person with 
 85.9   physical or developmental disabilities, or the head of a 
 85.10  single-parent family.  Home-sharing projects will coordinate 
 85.11  efforts with appropriate public and private agencies and 
 85.12  organizations in their area. 
 85.13     Subd. 3.  [INFORMATION FOR PARTICIPANTS.] Housing sponsors 
 85.14  who receive funding through these programs shall provide 
 85.15  homeowners and tenants participating in a home-sharing program 
 85.16  with information regarding their rights and obligations as they 
 85.17  relate to federal and state tax law including, but not limited 
 85.18  to, taxable rental income, homestead credit under chapter 273, 
 85.19  and the property tax refund act under chapter 290A. 
 85.20     Subd. 4.  [TECHNICAL ASSISTANCE.] The department of human 
 85.21  services may provide technical assistance to sponsors of 
 85.22  home-sharing programs or may contract or delegate the provision 
 85.23  of technical assistance. 
 85.24     Subd. 5.  [USING OUTSIDE AGENCIES.] The department of human 
 85.25  services may delegate, use, or employ any federal, state, 
 85.26  regional, or local public or private agency or organization, 
 85.27  including organizations of physically handicapped persons, upon 
 85.28  terms it deems necessary or desirable, to assist in the exercise 
 85.29  of any of the powers granted in this section. 
 85.30     Sec. 17.  Minnesota Statutes 1994, section 256.975, is 
 85.31  amended by adding a subdivision to read: 
 85.32     Subd. 6.  [INDIAN ELDERS POSITION.] The Minnesota board on 
 85.33  aging shall create an Indian elders coordinator position, and 
 85.34  shall hire staff as appropriations permit for the purposes of 
 85.35  coordinating efforts with the National Indian Council on Aging 
 85.36  and developing a comprehensive statewide service system for 
 86.1   Indian elders.  An Indian elder is defined for purposes of this 
 86.2   subdivision as an Indian enrolled in a band or tribe who is 55 
 86.3   years or older.  The statewide service system must include the 
 86.4   following components: 
 86.5      (1) an assessment of the program eligibility, examining the 
 86.6   need to change the age-based eligibility criteria to need-based 
 86.7   eligibility criteria; 
 86.8      (2) a planning system that would grant or make 
 86.9   recommendations for granting federal and state funding for 
 86.10  services; 
 86.11     (3) a plan for service focal points, senior centers, or 
 86.12  community centers for socialization and service accessibility 
 86.13  for Indian elders; 
 86.14     (4) a plan to develop and implement education and public 
 86.15  awareness campaigns including awareness programs, sensitivity 
 86.16  cultural training, and public education on Indian elder needs; 
 86.17     (5) a plan for information and referral services including 
 86.18  trained advocates and an Indian elder newsletter; 
 86.19     (6) a plan for a coordinated health care system including 
 86.20  health promotion/prevention, in-home service, long-term care 
 86.21  service, and health care services; 
 86.22     (7) a plan for ongoing research involving Indian elders 
 86.23  including needs assessment and needs analysis; 
 86.24     (8) information and referral services for legal advice or 
 86.25  legal counsel; and 
 86.26     (9) a plan to coordinate services with existing 
 86.27  organizations including the council of Indian affairs, the 
 86.28  Minnesota Indian council of elders, the Minnesota board on 
 86.29  aging, and tribal governments. 
 86.30     Sec. 18.  Minnesota Statutes 1994, section 256B.0628, is 
 86.31  amended by adding a subdivision to read: 
 86.32     Subd. 3.  [ASSESSMENT AND PRIOR AUTHORIZATION PROCESS FOR 
 86.33  RECIPIENTS OF BOTH HOME CARE AND HOME AND COMMUNITY-BASED 
 86.34  WAIVERED SERVICES FOR PERSONS WITH MENTAL RETARDATION OR RELATED 
 86.35  CONDITIONS.] Effective January 1, 1996, for purposes of 
 86.36  providing informed choice, coordinating of local planning 
 87.1   decisions, and streamlining administrative requirements, the 
 87.2   assessment and prior authorization process for persons receiving 
 87.3   both home care and home and community-based waivered services 
 87.4   for persons with mental retardation or related conditions shall 
 87.5   meet the requirements of this section and section 256B.0627 with 
 87.6   the following exceptions: 
 87.7      (a) Upon request for home care services and subsequent 
 87.8   assessment by the public health nurse under section 256B.0627, 
 87.9   the public health nurse shall participate in the screening 
 87.10  process, as appropriate, and, if home care services are 
 87.11  determined to be necessary, participate in the development of a 
 87.12  service plan coordinating the need for home care and home and 
 87.13  community-based waivered services with the assigned county case 
 87.14  manager, the recipient of services, and the recipient's legal 
 87.15  representative, if any. 
 87.16     (b) The public health nurse shall give prior authorization 
 87.17  for home care services to the extent that home care services are:
 87.18     (1) medically necessary; 
 87.19     (2) chosen by the recipient and their legal representative, 
 87.20  if any, from the array of home care and home and community-based 
 87.21  waivered services available; 
 87.22     (3) coordinated with other services to be received by the 
 87.23  recipient as described in the service plan; and 
 87.24     (4) provided within the county's reimbursement limits for 
 87.25  home care and home and community-based waivered services for 
 87.26  persons with mental retardation or related conditions. 
 87.27     (c) If the public health agency is or may be the provider 
 87.28  of home care services to the recipient, the public health agency 
 87.29  shall provide the commissioner of human services with a written 
 87.30  plan that specifies how the assessment and prior authorization 
 87.31  process will be held separate and distinct from the provision of 
 87.32  services. 
 87.33     Sec. 19.  Minnesota Statutes 1994, section 256B.092, is 
 87.34  amended by adding a subdivision to read: 
 87.35     Subd. 4c.  [LIVING ARRANGEMENTS BASED ON A 24-HOUR PLAN OF 
 87.36  CARE.] (a) Notwithstanding the requirements for licensure under 
 88.1   Minnesota Rules, part 9525.1860, subpart 6, item D, and upon 
 88.2   federal approval of an amendment to the home and community-based 
 88.3   services waiver for persons with mental retardation or related 
 88.4   conditions, a person receiving home and community-based services 
 88.5   may choose to live in their own home without requiring that the 
 88.6   living arrangement be licensed under Minnesota Rules, parts 
 88.7   9555.5050 to 9555.6265, provided the following conditions are 
 88.8   met: 
 88.9      (1) the person receiving home and community-based services 
 88.10  has chosen to live in their own home; 
 88.11     (2) home and community-based services are provided by a 
 88.12  qualified vendor who meets the provider standards as approved in 
 88.13  the Minnesota home and community-based services waiver plan for 
 88.14  persons with mental retardation or related conditions; 
 88.15     (3) the person, or their legal representative, individually 
 88.16  or with others has purchased or rents the home and the person's 
 88.17  service provider has no financial interest in the home; and 
 88.18     (4) the service planning team, as defined in Minnesota 
 88.19  Rules, part 9525.0004, subpart 24, has determined that the 
 88.20  planned services, the 24-hour plan of care, and the housing 
 88.21  arrangement are appropriate to address the health, safety, and 
 88.22  welfare of the person. 
 88.23     (b) The county agency may require safety inspections of the 
 88.24  selected housing as part of their determination of the adequacy 
 88.25  of the living arrangement. 
 88.26     Sec. 20.  [AUTHORIZATION FOR DOWNSIZING.] 
 88.27     Subdivision 1.  [DUTIES OF THE COMMISSIONER.] (a) The 
 88.28  commissioner of human services in consultation with Brown county 
 88.29  and advocates of persons with mental retardation, shall carry 
 88.30  out a voluntary downsizing of MBW on Center, an intermediate 
 88.31  care facility for persons with mental retardation, to assure 
 88.32  that appropriate services are provided in the least restrictive 
 88.33  setting as provided under Minnesota Statutes, section 252.291, 
 88.34  subdivision 3. 
 88.35     (b) The commissioner shall present a proposal to address 
 88.36  issues relating to: 
 89.1      (1) redistribution of costs; 
 89.2      (2) specific plans for the development and provision of 
 89.3   alternative services for residents moved from the intermediate 
 89.4   care facility for persons with mental retardation or related 
 89.5   conditions; 
 89.6      (3) timelines and expected beginning dates for resident 
 89.7   relocation and facility downsizing; and 
 89.8      (4) projected expenditures for services provided to persons 
 89.9   with mental retardation or related conditions. 
 89.10     (c) The commissioner shall ensure that residents discharged 
 89.11  from the facility are appropriately placed according to need in 
 89.12  compliance with Minnesota Rules, parts 9525.0025 to 9525.0165. 
 89.13     (d) The commissioner shall ensure that the proposal 
 89.14  complies with need determination procedures in Minnesota 
 89.15  Statutes, sections 252.28 and 252.291; case management 
 89.16  responsibilities in Minnesota Statutes, section 256B.092; rate 
 89.17  requirements in Minnesota Statutes, section 256B.501; the 
 89.18  requirements under United States Code, title 42, section 1396, 
 89.19  and the rules and regulations adopted under these laws. 
 89.20     (e) The resulting downsizing must result in living units of 
 89.21  no larger than four persons, having single bedrooms and a common 
 89.22  living room, dining room/kitchen, and bathroom. 
 89.23     (f) The commissioner shall contract with Brown county where 
 89.24  the facility is located and the facility.  The contract will 
 89.25  address and be consistent with the requirements of the proposal. 
 89.26     (g) Operating costs of the facility after downsizing may 
 89.27  not exceed the total allowable operating costs of the original 
 89.28  facility.  For purposes of rate setting for the facility after 
 89.29  downsizing, fixed costs may be redistributed but must be based 
 89.30  on the actual costs reflected in existing rates. 
 89.31     Subd. 2.  [IMPLEMENTATION OF THE PROPOSAL.] For the 
 89.32  purposes of the proposal, the commissioner shall: 
 89.33     (1) fund the downsizing of the ICF/MR; and 
 89.34     (2) notify Brown county and the facility of the selections 
 89.35  made and approved by the commissioner.  The decision of the 
 89.36  commissioner is final and may not be appealed. 
 90.1      Sec. 21.  [FACILITY CERTIFICATION.] 
 90.2      Notwithstanding Minnesota Statutes, section 252.291, 
 90.3   subdivisions 1 and 2, the commissioner of health shall inspect 
 90.4   to certify a large community-based facility currently licensed 
 90.5   under Minnesota Rules, parts 9525.0215 to 9525.0355, for more 
 90.6   than 16 beds and located in Northfield.  The facility may be 
 90.7   certified for up to 44 beds.  The commissioner of health must 
 90.8   inspect to certify the facility as soon as possible after the 
 90.9   effective date of this section.  The commissioner of human 
 90.10  services shall work with the facility and affected counties to 
 90.11  relocate any current residents of the facility who do not meet 
 90.12  the admission criteria for an ICF/MR.  To fund the ICF/MR 
 90.13  services and relocations of current residents authorized, the 
 90.14  commissioner of human services may transfer on a quarterly basis 
 90.15  to the medical assistance account from each affected county's 
 90.16  community social service allocation, an amount equal to the 
 90.17  state share of medical assistance reimbursement for the 
 90.18  residential and day habilitation services funded by medical 
 90.19  assistance and provided to clients for whom the county is 
 90.20  financially responsible.  For nonresidents of Minnesota seeking 
 90.21  admission to the facility, Rice county shall be notified in 
 90.22  order to assure that appropriate funding is guaranteed from 
 90.23  their state or country of residence. 
 90.24     Sec. 22.  [CRISIS INTERVENTION PROJECTS.] 
 90.25     (a) The commissioner of human services may authorize up to 
 90.26  five projects to provide crisis intervention through 
 90.27  community-based services in the private or public sector to 
 90.28  persons with developmental disabilities.  The projects must be 
 90.29  geographically distributed in rural and urban areas.  The 
 90.30  parameters of these projects may be consistent with the special 
 90.31  needs crisis services outlined under Minnesota Statutes, section 
 90.32  256B.501, subdivision 8a. 
 90.33     (b) The commissioner shall request proposals from 
 90.34  individual counties or groups of counties and establish criteria 
 90.35  for approval of proposals.  Criteria shall include: 
 90.36     (1) avoidance of duplication of service by agreements with 
 91.1   hospitals and other public or private vendors as appropriate; 
 91.2      (2) reduction of inpatient psychiatric hospital expenses 
 91.3   using a cost-effective alternative service; 
 91.4      (3) maintenance of clients in their current homes; 
 91.5      (4) promotion of service to clients under a capitation 
 91.6   agreement with providers; 
 91.7      (5) coordination with other target populations and other 
 91.8   counties; 
 91.9      (6) provision of a full complement of on-site and off-site 
 91.10  behavioral support and crisis response services including: 
 91.11  training and technical assistance to prevent out of home 
 91.12  placements; crisis response, including in-home and short-term 
 91.13  placements; and assessment of service outcomes; 
 91.14     (7) evaluation of service program efficacy and cost 
 91.15  effectiveness. 
 91.16     (c) The commissioner shall review proposals in accordance 
 91.17  with Minnesota Statutes, section 252.28, and shall report to the 
 91.18  legislature on the cost effectiveness of the projects by January 
 91.19  15, 1997. 
 91.20     Sec. 23.  [REPEALER.] 
 91.21     Minnesota Statutes 1994, section 252.275, subdivisions 4a 
 91.22  and 10, are repealed. 
 91.23     Sec. 24.  [EFFECTIVE DATES.] 
 91.24     Section 15 (256.476) is effective July 1, 1996. 
 91.25                             ARTICLE 4 
 91.26                        CHILDREN'S PROGRAMS 
 91.27     Section 1.  Minnesota Statutes 1994, section 245A.14, 
 91.28  subdivision 7, is amended to read: 
 91.29     Subd. 7.  [CULTURAL DYNAMICS AND DISABILITIES TRAINING FOR 
 91.30  CHILD CARE PROVIDERS.] (a) The ongoing training required of 
 91.31  licensed child care centers center staff and group family and 
 91.32  group family child care providers and staff shall include 
 91.33  training in the cultural dynamics of early childhood development 
 91.34  and child care as an option. 
 91.35     (b) The cultural dynamics and disabilities training must 
 91.36  include, but not be limited to, the following:  awareness of the 
 92.1   value and dignity of different cultures and how different 
 92.2   cultures complement each other; awareness of the emotional, 
 92.3   physical, and mental needs of children and families of different 
 92.4   cultures; knowledge of current and traditional roles of women 
 92.5   and men in different cultures, communities, and family 
 92.6   environments; and awareness of the diversity of child rearing 
 92.7   practices and parenting traditions. and skills development of 
 92.8   child care providers shall be designed to achieve outcomes for 
 92.9   providers of child care that include, but are not limited to: 
 92.10     (1) an understanding and support of the importance of 
 92.11  culture and differences in ability in children's identity 
 92.12  development; 
 92.13     (2) understanding the importance of awareness of cultural 
 92.14  differences and similarities in working with children and their 
 92.15  families; 
 92.16     (3) understanding and support of the needs of families and 
 92.17  children with differences in ability; 
 92.18     (4) developing skills to help children develop unbiased 
 92.19  attitudes about cultural differences and differences in ability; 
 92.20     (5) developing skills in culturally appropriate caregiving; 
 92.21  and 
 92.22     (6) developing skills in appropriate caregiving for 
 92.23  children of different abilities.  
 92.24     Curriculum for cultural dynamics and disability training 
 92.25  shall be approved by the commissioner. 
 92.26     (c) The commissioner shall amend current rules relating to 
 92.27  the initial training of the licensed child care center staff and 
 92.28  licensed providers included in paragraph (a) of family and group 
 92.29  family child care and staff to require cultural dynamics 
 92.30  training upon determining that sufficient curriculum is 
 92.31  developed statewide.  Timelines established in the rule 
 92.32  amendments for complying with the cultural dynamics training 
 92.33  requirements shall be based on the commissioner's determination 
 92.34  that curriculum materials and trainers are available statewide. 
 92.35     Sec. 2.  Minnesota Statutes 1994, section 256.8711, is 
 92.36  amended to read: 
 93.1      256.8711 [EMERGENCY ASSISTANCE; INTENSIVE FAMILY 
 93.2   PRESERVATION SERVICES.] 
 93.3      Subdivision 1.  [SCOPE OF SERVICES.] (a) For a family 
 93.4   experiencing an emergency as defined in subdivision 2, and for 
 93.5   whom the county authorizes services under subdivision 3, 
 93.6   intensive family preservation services authorized under this 
 93.7   section include both intensive family preservation services and 
 93.8   emergency assistance placement services. 
 93.9      (b) For purposes of this section, intensive family 
 93.10  preservation services are: 
 93.11     (1) crisis family-based services; 
 93.12     (2) counseling family-based services; and 
 93.13     (3) mental health family-based services. 
 93.14     Intensive family preservation services also include 
 93.15  family-based life management skills when it is provided in 
 93.16  conjunction with any of the three family-based services or five 
 93.17  emergency assistance placement services in this subdivision.  
 93.18  The intensive family preservation services in clauses (1), (2), 
 93.19  and (3) and life management skills have the meanings given in 
 93.20  section 256F.03, subdivision 5, paragraphs (a), (b), (c), and 
 93.21  (e). 
 93.22     (c) For purposes of this section, emergency assistance 
 93.23  placement services include: 
 93.24     (1) emergency shelter services; 
 93.25     (2) foster care services; 
 93.26     (3) group home services; 
 93.27     (4) child residential treatment services; and 
 93.28     (5) correctional facility services. 
 93.29     Subd. 2.  [DEFINITION OF EMERGENCY.] For the purposes of 
 93.30  this section, an emergency is a situation in which the dependent 
 93.31  children are at risk for out-of-home placement due to abuse, 
 93.32  neglect, or delinquency; or when the children are returning home 
 93.33  from placements but need services to prevent another 
 93.34  placement; or when the parents are unable to provide care; or 
 93.35  when the dependent children have been removed from the home by a 
 93.36  peace officer, by order of the juvenile court, or pursuant to a 
 94.1   voluntary placement agreement, to a publicly funded out-of-home 
 94.2   placement. 
 94.3      Subd. 3.  [COUNTY AUTHORIZATION.] The county agency shall 
 94.4   assess current and prospective client families with a dependent 
 94.5   under 21 years of age to determine if there is an emergency, as 
 94.6   defined in subdivision 2, and to determine if there is a need 
 94.7   for intensive family preservation services.  Upon such 
 94.8   determinations, during the period October 1, 1993 to September 
 94.9   30, 1995, counties shall authorize intensive family preservation 
 94.10  services for up to 90 days 12 months for eligible families under 
 94.11  this section and under section 256.871, subdivisions 1 and 
 94.12  3.  Effective October 1, 1995, Once authorized, intensive family 
 94.13  services shall be used singly or in any combination or duration 
 94.14  up to 12 months appropriate to the needs of the child, as 
 94.15  determined by the county agency. 
 94.16     Subd. 3a.  [LIMITATIONS ON FEDERAL FUNDING.] County 
 94.17  agencies shall determine eligibility under Title IV-E of the 
 94.18  Social Security Act for every child being considered for 
 94.19  emergency assistance placement services.  The commissioner and 
 94.20  county agencies shall make every effort to use federal funding 
 94.21  under Title IV-E of the Social Security Act instead of federal 
 94.22  funding under this section, whenever possible.  The counties' 
 94.23  obligations to continue the base level of expenditures and to 
 94.24  expand family preservation services as defined in section 
 94.25  256F.03, subdivision 5, are eliminated, with the termination of 
 94.26  if the federal revenue earned under this section is terminated.  
 94.27  If the federal revenue earned under this section is terminated 
 94.28  or inadequate, the state has no obligation to pay for these 
 94.29  services.  In the event that federal limitations or ceilings are 
 94.30  imposed on federal emergency assistance funding, the 
 94.31  commissioner shall use the funds according to these priorities: 
 94.32     (1) emergency assistance benefits under section 256.871; 
 94.33     (2) emergency assistance benefits under the reserve 
 94.34  established in subdivision 5; 
 94.35     (3) intensive family preservation services under this 
 94.36  section; and 
 95.1      (4) emergency assistance placement services under this 
 95.2   section. 
 95.3      Subd. 4.  [COST TO FAMILIES.] Family preservation services 
 95.4   provided under this section or sections 256F.01 to 256F.07 shall 
 95.5   be provided at no cost to the client and without regard to the 
 95.6   client's available income or assets.  Emergency assistance 
 95.7   placement services provided under this section shall not be 
 95.8   dependent on the client's available income or assets.  However, 
 95.9   county agencies shall seek costs of care as required under 
 95.10  section 260.251 for emergency assistance placement services. 
 95.11     Subd. 5.  [EMERGENCY ASSISTANCE RESERVE.] The commissioner 
 95.12  shall establish an emergency assistance reserve for families who 
 95.13  receive intensive family preservation services under this 
 95.14  section.  A family is eligible to receive assistance once from 
 95.15  the emergency assistance reserve if it received intensive family 
 95.16  preservation services under this section within the past 12 
 95.17  months, but has not received emergency assistance under section 
 95.18  256.871 during that period.  The emergency assistance reserve 
 95.19  shall cover the cost of the federal share of the assistance that 
 95.20  would have been available under section 256.871, except for the 
 95.21  provision of intensive family preservation services provided 
 95.22  under this section.  The emergency assistance reserve shall be 
 95.23  authorized and paid in the same manner as emergency assistance 
 95.24  is provided under section 256.871.  Funds set aside for the 
 95.25  emergency assistance reserve that are not needed as determined 
 95.26  by the commissioner shall be distributed by the terms of 
 95.27  subdivision 6, paragraph (a); or 6b, paragraph (a), depending on 
 95.28  how the funds were earned. 
 95.29     Subd. 6.  [DISTRIBUTION OF NEW FEDERAL REVENUE EARNED FOR 
 95.30  INTENSIVE FAMILY PRESERVATION SERVICES.] (a) All federal funds 
 95.31  not set aside under paragraph (b), and at least 50 percent of 
 95.32  all federal funds earned for intensive family preservation 
 95.33  services under this section and earned through assessment 
 95.34  activity under subdivision 3, shall be paid to each county based 
 95.35  on its earnings and assessment activity, respectively, and shall 
 95.36  be used by each county to expand family preservation core 
 96.1   services as defined in section 256F.03, subdivision 5 10, and 
 96.2   may be used to expand crisis nursery services.  If a county 
 96.3   joins a local children's mental health collaborative as 
 96.4   authorized by the 1993 legislature, then the federal 
 96.5   reimbursement received under this paragraph by the county for 
 96.6   providing intensive family preservation services to children 
 96.7   served by the local collaborative shall be transferred by the 
 96.8   county to the integrated fund.  The federal reimbursement 
 96.9   transferred to the integrated fund by the county must be used 
 96.10  for intensive family preservation services as defined in section 
 96.11  256F.03, subdivision 5, to the target population.  
 96.12     (b) The commissioner shall set aside a portion, not to 
 96.13  exceed 50 percent, of the federal funds earned for intensive 
 96.14  family preservation services under this section and earned 
 96.15  through assessment activity described under subdivision 3.  The 
 96.16  set aside funds shall be used to develop and expand intensive 
 96.17  family preservation services statewide as provided in 
 96.18  subdivisions 6a and 7 and establish an emergency assistance 
 96.19  reserve as provided in subdivision 5.  
 96.20     Subd. 6a.  [DEVELOPMENT GRANTS.] Except for the portion 
 96.21  needed for the emergency assistance reserve provided in 
 96.22  subdivision 5, the commissioner may shall distribute the funds 
 96.23  set aside under subdivision 6, paragraph (b), 
 96.24  through development grants to a county or counties to establish 
 96.25  and maintain approved intensive family preservation core 
 96.26  services as defined in section 256F.03, subdivision 10, 
 96.27  statewide.  Funds available for crisis family-based services 
 96.28  through section 256F.05, subdivision 8, shall be considered in 
 96.29  establishing intensive family preservation services statewide.  
 96.30  The commissioner may phase in intensive family preservation 
 96.31  services in a county or group of counties as new federal funds 
 96.32  become available.  The commissioner's priority is to establish a 
 96.33  minimum level of intensive family preservation core services 
 96.34  statewide.  Each county's development grant shall be paid and 
 96.35  used as provided in sections 256F.01 to 256F.06. 
 96.36     Subd. 6b.  [DISTRIBUTION OF NEW FEDERAL REVENUE EARNED FOR 
 97.1   EMERGENCY ASSISTANCE PLACEMENT SERVICES.] (a) All federal funds 
 97.2   earned for emergency assistance placement services not set aside 
 97.3   under paragraph (b), shall be paid to each county based on its 
 97.4   earnings.  These payments shall constitute the placement 
 97.5   earnings grant of the family preservation fund under sections 
 97.6   256F.01 to 256F.06. 
 97.7      (b) The commissioner may set aside a portion, not to exceed 
 97.8   15 percent, of the federal funds earned for emergency assistance 
 97.9   placement services under this section.  The set aside funds 
 97.10  shall be used for the emergency assistance reserve as provided 
 97.11  in subdivision 5. 
 97.12     Subd. 7.  [EXPANSION OF SERVICES AND BASE LEVEL OF 
 97.13  EXPENDITURES.] (a) Counties must continue the base level of 
 97.14  expenditures for family preservation core services as defined in 
 97.15  section 256F.03, subdivision 5 10, from any state, county, or 
 97.16  federal funding source, which, in the absence of federal funds 
 97.17  earned for intensive family preservation services under this 
 97.18  section and earned through assessment activity described under 
 97.19  subdivision 3, would have been available for these services.  
 97.20  The commissioner shall review the county expenditures annually, 
 97.21  using reports required under sections 245.482, 256.01, 
 97.22  subdivision 2, paragraph (17), and 256E.08, subdivision 8, to 
 97.23  ensure that the base level of expenditures for family 
 97.24  preservation core services as defined in section 256F.03, 
 97.25  subdivision 5 10, is continued from sources other than the 
 97.26  federal funds earned under this section and earned through 
 97.27  assessment activity described under subdivision 3. 
 97.28     (b) The commissioner may shall, at the request of a county, 
 97.29  reduce, suspend, or eliminate either or both of a county's 
 97.30  obligations to continue the base level of expenditures and to 
 97.31  expand family preservation core services as defined in section 
 97.32  256F.03, subdivision 5 10, if the commissioner determines that 
 97.33  one or more of the following conditions apply to that county: 
 97.34     (1) imposition of levy limits or other levy restrictions 
 97.35  that significantly reduce available social service funds; 
 97.36     (2) reduction in the net tax capacity of the taxable 
 98.1   property within a county that significantly reduces available 
 98.2   social service funds; 
 98.3      (3) reduction in the number of children under age 19 in the 
 98.4   county by 25 percent when compared with the number in the base 
 98.5   year using the most recent data provided by the state 
 98.6   demographer's office; or 
 98.7      (4) termination or reduction of the federal revenue earned 
 98.8   under this section; or 
 98.9      (5) other changes in state law that significantly impact 
 98.10  the receipt or distribution of state and federal funding. 
 98.11     (c) The commissioner may suspend for one year either or 
 98.12  both of a county's obligations to continue the base level of 
 98.13  expenditures and to expand family preservation core services as 
 98.14  defined in section 256F.03, subdivision 5 10, if the 
 98.15  commissioner determines that in the previous year one or more of 
 98.16  the following conditions applied to that county: 
 98.17     (1) the unduplicated number of families who received family 
 98.18  preservation services under section 256F.03, subdivision 5, 
 98.19  paragraphs (a), (b), (c), and (e), equals or exceeds the 
 98.20  unduplicated number of children who entered placement under 
 98.21  sections 257.071 and 393.07, subdivisions 1 and 2, during the 
 98.22  year; 
 98.23     (2) the total number of children in placement under 
 98.24  sections 257.071 and 393.07, subdivisions 1 and 2, has been 
 98.25  reduced by 50 percent from the total number in the base year; or 
 98.26     (3) the average number of children in placement under 
 98.27  sections 257.071 and 393.07, subdivisions 1 and 2, on the last 
 98.28  day of each month is equal to or less than one child per 1,000 
 98.29  children in the county. 
 98.30     (d) For the purposes of this section, the base year is 
 98.31  calendar year 1992.  For the purposes of this section, the base 
 98.32  level of expenditures is the level of county expenditures in the 
 98.33  base year for eligible family preservation services under 
 98.34  section 256F.03, subdivision 5, paragraphs (a), (b), (c), and 
 98.35  (e). 
 98.36     Subd. 8.  [COUNTY RESPONSIBILITIES.] (a) Notwithstanding 
 99.1   section 256.871, subdivision 6, for intensive 
 99.2   family preservation services provided under this section, the 
 99.3   county agency shall submit quarterly fiscal reports as required 
 99.4   under section 256.01, subdivision 2, clause (17), and provide 
 99.5   the nonfederal share. 
 99.6      (b) County expenditures eligible for federal reimbursement 
 99.7   under this section must not be made from federal funds or funds 
 99.8   used to match other federal funds. 
 99.9      (c) The commissioner may suspend, reduce, or terminate the 
 99.10  federal reimbursement to a county that does not meet the 
 99.11  reporting or other requirements of this section. 
 99.12     Subd. 9.  [PAYMENTS.] Notwithstanding section 256.025, 
 99.13  subdivision 2, payments to counties for social service 
 99.14  expenditures for intensive family preservation services under 
 99.15  this section shall be made only from the federal earnings under 
 99.16  this section and earned through assessment activity described 
 99.17  under subdivision 3.  Counties may use up to ten percent of 
 99.18  federal earnings received under subdivision 6, paragraph (a), to 
 99.19  cover costs of income maintenance activities related to the 
 99.20  operation of this section and sections 256B.094 and 256F.10. 
 99.21     Subd. 10.  [COMMISSIONER RESPONSIBILITIES.] The 
 99.22  commissioner in consultation with counties shall analyze state 
 99.23  funding options to cover costs of counties' base level 
 99.24  expenditures and any expansion of the nonfederal share of 
 99.25  intensive family preservation services resulting from 
 99.26  implementation of this section.  The commissioner shall also 
 99.27  study problems of implementation, barriers to maximizing federal 
 99.28  revenue, and the impact on out-of-home placements of 
 99.29  implementation of this section.  The commissioner shall report 
 99.30  to the legislature on the results of this analysis and study, 
 99.31  together with recommendations, by February 15, 1995.  
 99.32     Sec. 3.  Minnesota Statutes 1994, section 256D.02, 
 99.33  subdivision 5, is amended to read: 
 99.34     Subd. 5.  "Family" means the applicant or recipient and the 
 99.35  following persons who reside with the applicant or recipient:  
 99.36     (1) the applicant's spouse;