1.1                          A bill for an act 
  1.2             relating to employment; modifying provisions relating 
  1.3             to rehabilitation programs and services; amending 
  1.4             Minnesota Statutes 1994, sections 268A.01, 
  1.5             subdivisions 4, 5, 6, 9, and 10; 268A.03; 268A.06, 
  1.6             subdivision 1; 268A.07; 268A.08, subdivisions 1 and 2; 
  1.7             and 268A.13; proposing coding for new law in Minnesota 
  1.8             Statutes, chapter 268A; repealing Minnesota Statutes 
  1.9             1994, sections 268A.01, subdivisions 7, 11, and 12; 
  1.10            and 268A.09. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1994, section 268A.01, 
  1.13  subdivision 4, is amended to read: 
  1.14     Subd. 4.  [VOCATIONAL REHABILITATION SERVICES.] "Vocational 
  1.15  rehabilitation services" means those services and goods so 
  1.16  defined in the federal Rehabilitation Act of 1973, as amended, 
  1.17  and section 268A.03, clause (b). 
  1.18     Sec. 2.  Minnesota Statutes 1994, section 268A.01, 
  1.19  subdivision 5, is amended to read: 
  1.20     Subd. 5.  [PERSON WITH A DISABILITY.] "Person with a 
  1.21  disability" means a person who because of a substantial 
  1.22  physical, mental, or emotional disability or dysfunction 
  1.23  requires special services in order to enjoy the benefits of 
  1.24  society. 
  1.25     Sec. 3.  Minnesota Statutes 1994, section 268A.01, 
  1.26  subdivision 6, is amended to read: 
  1.27     Subd. 6.  [REHABILITATION FACILITY.] "Rehabilitation 
  1.28  facility" means an entity which meets the definition 
  2.1   of community rehabilitation facility program in the federal 
  2.2   Rehabilitation Act of 1973, as amended;.  However, for the 
  2.3   purposes of sections 268A.03, paragraph (a), 268A.06, 268A.08, 
  2.4   and 268A.09 268A.15, rehabilitation facility means an entity 
  2.5   which is operated for the primary purpose of 
  2.6   providing remunerative or facilitating employment to those for 
  2.7   persons with a severe disability who, as a result of physical or 
  2.8   mental disability, are unable to participate in competitive 
  2.9   employment.  A rehabilitation facility shall supply such 
  2.10  employment (1) as a step in the rehabilitation process for those 
  2.11  who cannot be readily absorbed in the competitive labor market, 
  2.12  or (2) during such time as employment opportunities for them in 
  2.13  the competitive labor market do not exist. 
  2.14     Sec. 4.  Minnesota Statutes 1994, section 268A.01, 
  2.15  subdivision 9, is amended to read: 
  2.16     Subd. 9.  [LONG-TERM CENTER-BASED EMPLOYMENT PROGRAM 
  2.17  SUBPROGRAM.] "Long-term Center-based employment program 
  2.18  subprogram" means a program employment which provides paid work 
  2.19  on the premises of a rehabilitation facility and training 
  2.20  services or other services necessary for employment on or off 
  2.21  the premises and which does not include work activity of the 
  2.22  rehabilitation facility. 
  2.23     Sec. 5.  Minnesota Statutes 1994, section 268A.01, 
  2.24  subdivision 10, is amended to read: 
  2.25     Subd. 10.  [EXTENDED EMPLOYMENT PROGRAMS PROGRAM.] 
  2.26  "Extended employment programs program" means the following 
  2.27  programs which may be offered by a rehabilitation 
  2.28  facility:  center-based employment and supported employment 
  2.29  subprograms. 
  2.30     (1) long-term employment program; 
  2.31     (2) work activity program; 
  2.32     (3) work component program; and 
  2.33     (4) supported employment program. 
  2.34     Sec. 6.  Minnesota Statutes 1994, section 268A.03, is 
  2.35  amended to read: 
  2.36     268A.03 [POWERS AND DUTIES.] 
  3.1      The commissioner shall: 
  3.2      (a) certify the rehabilitation facilities to offer extended 
  3.3   employment programs, grant funds to the extended employment 
  3.4   programs, and perform the duties as specified in section 268A.09 
  3.5   268A.15; 
  3.6      (b) provide vocational rehabilitation services to persons 
  3.7   with disabilities in accordance with the state plan for 
  3.8   vocational rehabilitation.  These services include but are not 
  3.9   limited to:  diagnostic and related services incidental to 
  3.10  determination of eligibility for services to be provided, 
  3.11  including medical diagnosis and vocational diagnosis; vocational 
  3.12  counseling, training and instruction, including personal 
  3.13  adjustment training; physical restoration, including corrective 
  3.14  surgery, therapeutic treatment, hospitalization and prosthetic 
  3.15  and orthotic devices, all of which shall be obtained from 
  3.16  appropriate established agencies; transportation; occupational 
  3.17  and business licenses or permits, customary tools and equipment; 
  3.18  maintenance; books, supplies, and training materials; initial 
  3.19  stocks and supplies; placement; on-the-job skill training and 
  3.20  time-limited postemployment services leading to supported 
  3.21  employment; acquisition of vending stands or other equipment, 
  3.22  initial stocks and supplies for small business enterprises; 
  3.23  supervision and management of small business enterprises, 
  3.24  merchandising programs, or services rendered by severely 
  3.25  disabled persons.  Persons with a disability are entitled to 
  3.26  free choice of vendor for any medical, dental, prosthetic, or 
  3.27  orthotic services provided under this paragraph; 
  3.28     (c) expend funds and provide technical assistance for the 
  3.29  establishment, improvement, maintenance, or extension of public 
  3.30  and other nonprofit rehabilitation facilities or centers; 
  3.31     (d) maintain a contractual or regulatory relationship with 
  3.32  the United States as authorized by the Social Security Act, as 
  3.33  amended.  Under this relationship, the state will undertake to 
  3.34  make determinations referred to in those public laws with 
  3.35  respect to all individuals in Minnesota, or with respect to a 
  3.36  class or classes of individuals in this state that is designated 
  4.1   in the agreement at the state's request.  It is the purpose of 
  4.2   this relationship to permit the citizens of this state to obtain 
  4.3   all benefits available under federal law; 
  4.4      (e) provide an in-service training program for division of 
  4.5   rehabilitation services employees by paying for its direct costs 
  4.6   with state and federal funds; 
  4.7      (f) conduct research and demonstration projects; provide 
  4.8   training and instruction, including establishment and 
  4.9   maintenance of research fellowships and traineeships, along with 
  4.10  all necessary stipends and allowances; disseminate information 
  4.11  to persons with a disability and the general public; and provide 
  4.12  technical assistance relating to vocational rehabilitation and 
  4.13  independent living; 
  4.14     (g) receive and disburse pursuant to law money and gifts 
  4.15  available from governmental and private sources including, but 
  4.16  not limited to, the federal Department of Education and the 
  4.17  Social Security Administration, for the purpose of vocational 
  4.18  rehabilitation or independent living; 
  4.19     (h) design all state plans for vocational rehabilitation or 
  4.20  independent living services required as a condition to the 
  4.21  receipt and disbursement of any money available from the federal 
  4.22  government; 
  4.23     (i) cooperate with other public or private agencies or 
  4.24  organizations for the purpose of vocational rehabilitation or 
  4.25  independent living.  Money received from school districts, 
  4.26  governmental subdivisions, mental health centers or boards, and 
  4.27  private nonprofit organizations is appropriated to the 
  4.28  commissioner for conducting joint or cooperative vocational 
  4.29  rehabilitation or independent living programs; 
  4.30     (j) enter into contractual arrangements with 
  4.31  instrumentalities of federal, state, or local government and 
  4.32  with private individuals, organizations, agencies, or facilities 
  4.33  with respect to providing vocational rehabilitation or 
  4.34  independent living services; 
  4.35     (k) take other actions required by state and federal 
  4.36  legislation relating to vocational rehabilitation, independent 
  5.1   living, and disability determination programs; 
  5.2      (l) hire staff and arrange services and facilities 
  5.3   necessary to perform the duties and powers specified in this 
  5.4   section; 
  5.5      (m) adopt, amend, suspend, or repeal rules necessary to 
  5.6   implement or make specific programs that the commissioner by 
  5.7   sections 268A.01 to 268A.10 268A.15 is empowered to administer; 
  5.8   and 
  5.9      (n) contact any person with traumatic brain injury or 
  5.10  spinal cord injury reported by the commissioner of health under 
  5.11  section 144.664, subdivision 3, and notify the person, or the 
  5.12  person's parent or guardian if the person is a minor or is 
  5.13  mentally incompetent, of services available to the person, 
  5.14  eligibility requirements and application procedures for public 
  5.15  programs, and other information the commissioner believes may be 
  5.16  helpful to the person to make appropriate use of available 
  5.17  rehabilitation services. 
  5.18     Sec. 7.  Minnesota Statutes 1994, section 268A.06, 
  5.19  subdivision 1, is amended to read: 
  5.20     Subdivision 1.  [APPLICATION.] Any city, town, county, 
  5.21  nonprofit corporation, state regional center, or any combination 
  5.22  thereof, may apply to the commissioner for assistance in 
  5.23  establishing or operating a community rehabilitation facility.  
  5.24  Application for assistance shall be on forms supplied prescribed 
  5.25  by the commissioner.  Each applicant shall annually submit to 
  5.26  the commissioner its plan and budget for the next fiscal year.  
  5.27  No applicant shall be eligible for a grant hereunder unless its 
  5.28  plan and budget have been approved by the commissioner. 
  5.29     Sec. 8.  Minnesota Statutes 1994, section 268A.07, is 
  5.30  amended to read: 
  5.31     268A.07 [REQUIREMENTS FOR CERTIFICATION.] 
  5.32     Subdivision 1.  [BENEFITS.] A rehabilitation facility must, 
  5.33  as a condition for receiving program certification, provide 
  5.34  employees in a long-term center-based employment program the 
  5.35  with personnel benefits prescribed in rules adopted by the 
  5.36  commissioner of the department of economic security. 
  6.1      Subd. 2.  [GRIEVANCE PROCEDURE.] A rehabilitation facility 
  6.2   must, as a condition for receiving program certification, 
  6.3   provide to employees in a long-term center-based 
  6.4   employment program subprograms, a grievance procedure which has 
  6.5   as its final step provisions for final and binding arbitration. 
  6.6      Sec. 9.  Minnesota Statutes 1994, section 268A.08, 
  6.7   subdivision 1, is amended to read: 
  6.8      Subdivision 1.  [APPOINTMENT; MEMBERSHIP.] Every city, 
  6.9   town, county, nonprofit corporation, or combination thereof 
  6.10  establishing a rehabilitation facility shall appoint a 
  6.11  rehabilitation facility board of no fewer than nine members 
  6.12  before becoming eligible for the assistance provided by sections 
  6.13  268A.06 to 268A.09 268A.15.  When any city, town, or county 
  6.14  singly establishes such a rehabilitation facility, the board 
  6.15  shall be appointed by the chief executive officer of the city or 
  6.16  the chair of the governing board of the county or town.  When 
  6.17  any combination of cities, towns, counties, or nonprofit 
  6.18  corporations establishes a rehabilitation facility, the chief 
  6.19  executive officers of the cities, nonprofit corporations and the 
  6.20  chairs of the governing bodies of the counties or towns shall 
  6.21  appoint the board.  If a nonprofit corporation singly 
  6.22  establishes a rehabilitation facility, the corporation shall 
  6.23  appoint the board of directors.  Membership on a board shall be 
  6.24  representative of the community served and shall include a 
  6.25  person with a disability.  One-third to one-half of the board 
  6.26  shall be representative of industry or business.  The remaining 
  6.27  members should be representative of lay associations for persons 
  6.28  with a disability, labor, the general public, and education, 
  6.29  welfare, medical, and health professions.  Nothing in sections 
  6.30  268A.06 to 268A.09 268A.15 shall be construed to preclude the 
  6.31  appointment of elected or appointed public officials or members 
  6.32  of the board of directors of the sponsoring nonprofit 
  6.33  corporation to the board, so long as representation described 
  6.34  above is preserved.  If a state regional center establishes an 
  6.35  extended employment program, the chief executive officer of the 
  6.36  state regional center shall perform the functions of the 
  7.1   rehabilitation facility board as prescribed in subdivision 2.  
  7.2   The regional center is not required to establish a separate 
  7.3   governing body as a board.  The state regional center shall 
  7.4   establish an advisory committee following the membership 
  7.5   representation requirements of this subdivision.  If a county 
  7.6   establishes an extended employment program and manages the 
  7.7   program with county employees, the governing board shall be the 
  7.8   county board of commissioners and other provisions of this 
  7.9   chapter pertaining to membership on the governing board do not 
  7.10  apply. 
  7.11     Sec. 10.  Minnesota Statutes 1994, section 268A.08, 
  7.12  subdivision 2, is amended to read: 
  7.13     Subd. 2.  [DUTIES.] Subject to the provisions of sections 
  7.14  268A.06 to 268A.09 268A.15 and the rules of the department, each 
  7.15  rehabilitation facility board shall: 
  7.16     (a) review and evaluate the need for extended employment 
  7.17  programs offered by the rehabilitation facility provided 
  7.18  pursuant to sections 268A.06 to 268A.09 268A.15 and report 
  7.19  thereon to the commissioner and, when indicated, the public, 
  7.20  together with recommendations for additional extended employment 
  7.21  programs; 
  7.22     (b) recruit and promote local financial support for the 
  7.23  extended employment programs from private sources such as 
  7.24  community chests, business, industrial and private foundations, 
  7.25  voluntary agencies and other lawful sources and promote public 
  7.26  support for municipal and county appropriations; 
  7.27     (c) promote, arrange, and implement working agreements with 
  7.28  other educational and social service agencies both public and 
  7.29  private and any other allied agencies; 
  7.30     (d) advise the commissioner on the adoption and 
  7.31  implementation of policies to stimulate effective community 
  7.32  relations; 
  7.33     (e) review the annual plan and budget and make 
  7.34  recommendations thereon; 
  7.35     (f) when the an extended employment program offered by the 
  7.36  rehabilitation facility is certified, act as the administrator 
  8.1   of the rehabilitation facility and its programs subprograms for 
  8.2   purposes of this chapter. 
  8.3      Sec. 11.  Minnesota Statutes 1994, section 268A.13, is 
  8.4   amended to read: 
  8.5      268A.13 [EMPLOYMENT SUPPORT SERVICES FOR PERSONS WITH 
  8.6   MENTAL ILLNESS.] 
  8.7      The commissioner of economic security, in cooperation with 
  8.8   the commissioner of human services, shall develop a statewide 
  8.9   program of grants to provide services for persons with mental 
  8.10  illness in supported employment.  Projects funded under this 
  8.11  section must:  (1) assist persons with mental illness in 
  8.12  obtaining and retaining employment; (2) emphasize individual 
  8.13  community placements for clients; (3) ensure interagency 
  8.14  collaboration at the local level between vocational 
  8.15  rehabilitation field offices, county service agencies, community 
  8.16  support programs operating under the authority of section 
  8.17  245.4712, and community rehabilitation providers, in assisting 
  8.18  clients; and (4) involve clients in the planning, development, 
  8.19  oversight, and delivery of support services.  Project funds may 
  8.20  not be used to provide services in segregated settings such as 
  8.21  long-term the center-based employment or work activity programs 
  8.22  subprograms as defined in section 268A.01. 
  8.23     The commissioner of economic security, in consultation with 
  8.24  the commissioner of human services, shall develop a request for 
  8.25  proposals which is consistent with the requirements of this 
  8.26  section and which specifies the types of services that must be 
  8.27  provided by grantees.  Projects shall be funded for state fiscal 
  8.28  year 1995 and priority for funding shall be given to 
  8.29  organizations with experience in developing innovative 
  8.30  employment support services for persons with mental illness.  
  8.31  Each applicant for funds under this section shall submit an 
  8.32  evaluation protocol as part of the grant application. 
  8.33     Sec. 12.  [268A.15] [EXTENDED EMPLOYMENT PROGRAM.] 
  8.34     Subdivision 1.  [ADMINISTRATION.] The department of 
  8.35  economic security shall administer this section through the 
  8.36  division of rehabilitation services.  The department may employ 
  9.1   staff as required to administer this section and may accept and 
  9.2   receive funds from nonstate sources for the purpose of 
  9.3   implementing this section. 
  9.4      Subd. 2.  [PURPOSE.] The purpose of the extended employment 
  9.5   program is to provide the ongoing services necessary to maintain 
  9.6   and advance the employment of persons with severe disabilities.  
  9.7   Employment under this section must encompass the broad range of 
  9.8   employment choices available to all persons and promote an 
  9.9   individual's self-sufficiency and financial independence.  
  9.10     Subd. 3.  [RULE AUTHORITY.] The commissioner shall adopt 
  9.11  rules on an individual's eligibility for the extended employment 
  9.12  program, the certification of rehabilitation facilities, and the 
  9.13  methods, criteria, and units of distribution for the allocation 
  9.14  of state grant funds to certified rehabilitation facilities.  In 
  9.15  determining the allocation, the commissioner must consider the 
  9.16  economic conditions of the community and the performance of 
  9.17  rehabilitation facilities relative to their impact on the 
  9.18  economic status of workers in the extended employment program. 
  9.19     Subd. 4.  [EVALUATION.] The commissioner of economic 
  9.20  security shall evaluate the extended employment program to 
  9.21  determine whether the purpose of extended employment as defined 
  9.22  in subdivision 2 is being achieved.  The evaluation must include 
  9.23  an assessment of whether workers in the extended employment 
  9.24  program are satisfied with their employment.  A written report 
  9.25  of this evaluation must be prepared at least every two years and 
  9.26  made available to the public.  
  9.27     Subd. 5.  [TECHNICAL ASSISTANCE.] The commissioner of 
  9.28  economic security shall provide technical assistance within 
  9.29  available resources to rehabilitation facilities.  
  9.30     Subd. 6.  [GRANTS.] The commissioner may provide innovation 
  9.31  and expansion grants to rehabilitation facilities to encourage 
  9.32  the development, demonstration, or dissemination of innovative 
  9.33  business practices, training programs, and service delivery 
  9.34  methods that: 
  9.35     (1) expand and improve employment opportunities for persons 
  9.36  with severe disabilities who are unserved or underserved by the 
 10.1   extended employment program; and 
 10.2      (2) increase the ability of persons with severe 
 10.3   disabilities to use new and emerging technologies in employment 
 10.4   settings, and foster the capacity of rehabilitation facilities 
 10.5   and employers to promote the integration of individuals with 
 10.6   severe disabilities into the workplace and the mainstream of 
 10.7   community life. 
 10.8      The grants must require collaboration at the local level 
 10.9   among vocational rehabilitation field offices, county social 
 10.10  service and planning agencies, rehabilitation facilities, and 
 10.11  employers.  
 10.12     Subd. 7.  [WITHDRAWAL OF FUNDS.] The commissioner may 
 10.13  withdraw funds from a rehabilitation facility that is not being 
 10.14  administered in accordance with its approved plan and budget 
 10.15  unless a modified plan and budget is submitted to and approved 
 10.16  by the commissioner, and implemented within a reasonable time.  
 10.17  The commissioner may withdraw funds from a rehabilitation 
 10.18  facility not being administered according to department rules, 
 10.19  or not meeting mandatory standards for certification, unless a 
 10.20  plan bringing the rehabilitation facility into compliance with 
 10.21  the rules and standards is submitted to and approved by the 
 10.22  commissioner, and implemented within a reasonable time.  Funds 
 10.23  withdrawn shall, after reasonable notice and opportunity for 
 10.24  hearing, be reallocated by the commissioner to other 
 10.25  rehabilitation facilities.  
 10.26     Sec. 13.  [REPEALER.] 
 10.27     Minnesota Statutes 1994, sections 268A.01, subdivisions 7, 
 10.28  11, and 12; and 268A.09, are repealed.