1.1                          A bill for an act 
  1.2             relating to the operation of state services; 
  1.3             appropriating money for the operation of the 
  1.4             departments of human services and health, the veterans 
  1.5             home board, the health related boards, the disability 
  1.6             council, the ombudsman for families, and the ombudsman 
  1.7             for mental health and mental retardation; changing 
  1.8             health department provisions; changing long-term care 
  1.9             facilities provisions; changing health care program 
  1.10            provisions; changing children's programs; changing 
  1.11            child support enforcement provisions; continuing care 
  1.12            for disabled persons; creating a demonstration project 
  1.13            for persons with disabilities; changing miscellaneous 
  1.14            provisions; changing marriage provisions; including 
  1.15            provisions for agency management; children's programs; 
  1.16            basic health care programs; medical assistance and 
  1.17            general assistance medical care; long-term care; 
  1.18            state-operated services; mental health and 
  1.19            developmentally disabled; child support enforcement; 
  1.20            assistance to families; health department; imposing 
  1.21            civil penalties; amending Minnesota Statutes 1996, 
  1.22            sections 13.46, subdivision 2; 13.99, by adding a 
  1.23            subdivision; 16A.124, subdivision 4b; 62D.04, 
  1.24            subdivision 5; 62E.14, by adding a subdivision; 
  1.25            62J.69, subdivision 2; 62N.10, subdivision 4; 
  1.26            103I.101, subdivision 6; 103I.208; 103I.401, 
  1.27            subdivision 1; 144.0721, subdivision 3; 144.121, 
  1.28            subdivision 1, and by adding subdivisions; 144.125; 
  1.29            144.226, subdivision 1, and by adding a subdivision; 
  1.30            144.394; 144.767, subdivision 1; 144A.071, 
  1.31            subdivisions 1, 2, and 4a; 144A.073, subdivision 2, 
  1.32            and by adding a subdivision; 145.925, subdivision 9; 
  1.33            151.40; 153A.17; 157.16, subdivision 3; 245.03, 
  1.34            subdivision 2; 245.4882, subdivision 5; 245.493, 
  1.35            subdivision 1, and by adding a subdivision; 245.652, 
  1.36            subdivisions 1, 2, and 4; 246.0135; 246.02, 
  1.37            subdivision 2; 252.025, subdivisions 1, 4, and by 
  1.38            adding a subdivision; 252.32, subdivisions 1a, 3, 3a, 
  1.39            3c, and 5; 254.04; 254B.02, subdivisions 1 and 3; 
  1.40            254B.03, subdivision 1; 254B.09, subdivisions 4, 5, 
  1.41            and 7; 256.01, subdivision 2, and by adding a 
  1.42            subdivision; 256.025, subdivisions 1 and 2; 256.045, 
  1.43            subdivisions 3, 3b, 4, 5, 7, and 8; 256.476, 
  1.44            subdivisions 2, 3, 4, and 5; 256.82, by adding a 
  1.45            subdivision; 256.87, subdivisions 1, 1a, 3, 5, and by 
  1.46            adding a subdivision; 256.9363, subdivision 7; 
  2.1             256.969, subdivision 1; 256.9695, subdivision 1; 
  2.2             256.9742; 256.9744, subdivision 2; 256.978, 
  2.3             subdivisions 1 and 2; 256.9792, subdivisions 1 and 2; 
  2.4             256.998, subdivisions 1, 6, 7, and by adding 
  2.5             subdivisions; 256B.037, subdivision 1a; 256B.04, by 
  2.6             adding a subdivision; 256B.055, subdivision 12; 
  2.7             256B.056, subdivisions 4 and 5; 256B.057, subdivisions 
  2.8             1, 1b, and 2; 256B.0625, subdivisions 14, 15, and by 
  2.9             adding a subdivision; 256B.0626; 256B.0627, 
  2.10            subdivision 5; 256B.064, subdivisions 1a, 1c, and 2; 
  2.11            256B.0911, subdivision 7; 256B.0913, subdivisions 7, 
  2.12            10, and 15; 256B.0915, subdivision 1b and by adding a 
  2.13            subdivision; 256B.0917, subdivisions 7 and 8; 
  2.14            256B.421, subdivision 1; 256B.431, subdivisions 3f, 
  2.15            25, and by adding subdivisions; 256B.434, subdivision 
  2.16            3; 256B.49, subdivision 1; 256B.69, subdivisions 2, 
  2.17            3a, 4, 5, 5b, 6, and by adding subdivisions; 256D.03, 
  2.18            subdivisions 3 and 3b; 256E.06, by adding a 
  2.19            subdivision; 256F.04, subdivisions 1 and 2; 256F.05, 
  2.20            subdivisions 2, 3, 4, and 8; 256F.06, subdivisions 1 
  2.21            and 2; 256F.11, subdivision 2; 256G.02, subdivision 6; 
  2.22            256I.05, subdivision 1a, and by adding a subdivision; 
  2.23            256J.69, by adding a subdivision; 257.62, subdivisions 
  2.24            1 and 2; 257.66, subdivision 3, and by adding a 
  2.25            subdivision; 257.70; 257.75, subdivisions 2, 3, 4, 5, 
  2.26            and 7; 299C.46, subdivision 3; 326.37, subdivision 1; 
  2.27            393.07, subdivision 2; 466.01, subdivision 1; 469.155, 
  2.28            subdivision 4; 471.59, subdivision 11; 508.63; 
  2.29            508A.63; 517.01; 517.03; 517.08, subdivision 1a; 
  2.30            517.20; 518.005, by adding a subdivision; 518.10; 
  2.31            518.148, subdivision 2; 518.17, subdivision 1; 
  2.32            518.171, subdivisions 1 and 4; 518.54, subdivision 6, 
  2.33            and by adding a subdivision; 518.551, subdivisions 12 
  2.34            and 13; 518.5512, by adding subdivisions; 518.616, by 
  2.35            adding a subdivision; 518.68, subdivision 2; 518C.101; 
  2.36            518C.204; 518C.205; 518C.207; 518C.301; 518C.304; 
  2.37            518C.305; 518C.310; 518C.401; 518C.501; 518C.603; 
  2.38            518C.605; 518C.608; 518C.611; 518C.612; 518C.701; 
  2.39            548.091, subdivisions 1a, 2a, 3a, and by adding 
  2.40            subdivisions; 550.37, subdivision 24; 626.556, 
  2.41            subdivisions 10b, 10d, 10e, 10f, 11c, and by adding a 
  2.42            subdivision; 626.558, subdivisions 1 and 2; and 
  2.43            626.559, subdivision 5; Laws 1995, chapter 207, 
  2.44            article 8, section 41, subdivision 2; and Laws 1997, 
  2.45            chapter 7, article 1, section 75; proposing coding for 
  2.46            new law in Minnesota Statutes, chapters 13B; 62J; 144; 
  2.47            145; 145A; 157; 181; 256; 256B; 257; 325F; 518; and 
  2.48            518C; proposing coding for new law as Minnesota 
  2.49            Statutes, chapters 256J and 552; amending 256J.02 as 
  2.50            proposed in SF1, by adding a subdivision; repealing 
  2.51            Minnesota Statutes 1996, sections 252.32, subdivision 
  2.52            4; 256.026; 256.74; 256.979, subdivision 9; 256B.057, 
  2.53            subdivisions 2a and 2b; 256B.0625, subdivision 13b; 
  2.54            256B.501, subdivision 5c; 256F.05, subdivisions 5 and 
  2.55            7; 469.154, subdivision 6; 518.5511, subdivisions 5, 
  2.56            6, 7, 8, and 9; 518.611; 518.613; 518.645; 518C.502; 
  2.57            518C.9011; and 609.375, subdivisions 3, 4, and 6. 
  2.58  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.59                             ARTICLE 1 
  2.60                           APPROPRIATIONS 
  2.61  Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
  2.62     The sums shown in the columns marked "APPROPRIATIONS" are 
  2.63  appropriated from the general fund, or any other fund named, to 
  2.64  the agencies and for the purposes specified in the following 
  3.1   sections of this article, to be available for the fiscal years 
  3.2   indicated for each purpose.  The figures "1998" and "1999" where 
  3.3   used in this article, mean that the appropriation or 
  3.4   appropriations listed under them are available for the fiscal 
  3.5   year ending June 30, 1998, or June 30, 1999, respectively.  
  3.6   Where a dollar amount appears in parentheses, it means a 
  3.7   reduction of an appropriation.  
  3.8                           SUMMARY BY FUND
  3.9   APPROPRIATIONS                                      BIENNIAL
  3.10                            1998          1999           TOTAL
  3.11  General          $2,550,299,000 $2,738,314,000 $5,288,613,000
  3.12  Health Care 
  3.13  Access                  -0-            -0-             -0-
  3.14  State Government
  3.15  Special Revenue      32,412,000     34,251,000     66,663,000
  3.16  Metropolitan 
  3.17  Landfill Contingency
  3.18  Action Fund             193,000        193,000        386,000
  3.19  Minnesota Resources     150,000        -0-            150,000
  3.20  Trunk Highway         1,652,000      1,678,000      3,300,000
  3.21  TOTAL             2,584,706,000  2,774,436,000  5,359,142,000
  3.22                                             APPROPRIATIONS 
  3.23                                         Available for the Year 
  3.24                                             Ending June 30 
  3.25                                            1998         1999 
  3.26  Sec. 2.  COMMISSIONER OF 
  3.27  HUMAN SERVICES 
  3.28  Subdivision 1.  Total 
  3.29  Appropriation                      2,466,382,000  2,654,862,000
  3.30                Summary by Fund
  3.31  General           2,465,929,000 2,654,400,000
  3.32  Health Care       
  3.33  Access                  -0-           -0- 
  3.34  State Government
  3.35  Special Revenue         453,000       462,000
  3.36  Subd. 2.  Agency Management 
  3.37  General              25,711,000    25,131,000
  3.38  Health Care
  3.39  Access                  -0-           -0- 
  3.40  State Government
  3.41  Special Revenue         342,000       350,000
  3.42  The amounts that may be spent from the 
  3.43  appropriation for each purpose are as 
  3.44  follows: 
  4.1   (a) Financial Operations 
  4.2   General               8,073,000     7,255,000
  4.3   Health Care
  4.4   Access                  -0-           -0- 
  4.5   [RECEIPTS FOR SYSTEMS PROJECTS.] 
  4.6   Appropriations and federal receipts for 
  4.7   information system projects for MAXIS, 
  4.8   electronic benefit system, social 
  4.9   services information system, child 
  4.10  support enforcement, and Minnesota 
  4.11  medicaid information system (MMIS II) 
  4.12  must be deposited in the state system 
  4.13  account authorized in Minnesota 
  4.14  Statutes, section 256.014.  Money 
  4.15  appropriated for computer projects 
  4.16  approved by the information policy 
  4.17  office, funded by the legislature, and 
  4.18  approved by the commissioner of finance 
  4.19  may be transferred from one project to 
  4.20  another and from development to 
  4.21  operations as the commissioner of human 
  4.22  services considers necessary.  Any 
  4.23  unexpended balance in the appropriation 
  4.24  for these projects does not cancel but 
  4.25  is available for ongoing development 
  4.26  and operations. 
  4.27  (b) Legal & Regulation Operations 
  4.28  General               6,158,000     6,146,000
  4.29  Health Care
  4.30  Access                  -0-           -0- 
  4.31  State Government
  4.32  Special Revenue         342,000       350,000
  4.33  [CHILD CARE LICENSING; FIRE MARSHALL 
  4.34  ASSISTANCE.] Of this amount, $200,000 
  4.35  for the biennium is for the 
  4.36  commissioner to add two deputy state 
  4.37  fire marshall positions in the 
  4.38  licensing division.  These positions 
  4.39  are to improve the speed of licensing 
  4.40  child care programs, to provide 
  4.41  technical assistance to applicants and 
  4.42  providers regarding fire safety, and to 
  4.43  improve communication between licensing 
  4.44  staff and fire officials.  The state 
  4.45  fire marshall shall train and supervise 
  4.46  the positions.  The state fire marshall 
  4.47  and the department shall develop an 
  4.48  interagency agreement outlining the 
  4.49  responsibilities and authorities for 
  4.50  these positions, and continuation of 
  4.51  cooperation to inspect programs that 
  4.52  exceed the resources of these two 
  4.53  positions.  Unexpended funds for fiscal 
  4.54  year 1998 do not cancel but are 
  4.55  available to the commissioner for these 
  4.56  purposes for fiscal year 1999. 
  4.57  (c) Management Operations 
  4.58  General              11,480,000    11,730,000
  4.59  Health Care
  4.60  Access                  -0-           -0- 
  5.1   [COMMUNICATION COSTS.] The commissioner 
  5.2   shall continue to operate the 
  5.3   department of human services 
  5.4   communication systems account 
  5.5   established in Laws 1993, First Special 
  5.6   Session chapter 1, article 1, section 
  5.7   2, subdivision 2, to manage shared 
  5.8   communication costs necessary for the 
  5.9   operation of the programs the 
  5.10  commissioner supervises.  A 
  5.11  communications account may also be 
  5.12  established for each regional treatment 
  5.13  center which operates communication 
  5.14  systems.  Each account shall be used to 
  5.15  manage shared communication costs 
  5.16  necessary for the operation of programs 
  5.17  the commissioner supervises.  The 
  5.18  commissioner may distribute the costs 
  5.19  of operating and maintaining 
  5.20  communication systems to participants 
  5.21  in a manner that reflects actual 
  5.22  usage.  Costs may include acquisition, 
  5.23  licensing, insurance, maintenance, 
  5.24  repair, staff time, and other costs as 
  5.25  determined by the commissioner.  
  5.26  Nonprofit organizations and state, 
  5.27  county, and local government agencies 
  5.28  involved in the operation of programs 
  5.29  the commissioner supervises may 
  5.30  participate in the use of the 
  5.31  department's communication technology 
  5.32  and share in the cost of operation.  
  5.33  The commissioner may accept on behalf 
  5.34  of the state any gift, bequest, devise, 
  5.35  or personal property of any kind, or 
  5.36  money tendered to the state for any 
  5.37  lawful purpose pertaining to the 
  5.38  communication activities of the 
  5.39  department.  Any money received for 
  5.40  this purpose must be deposited in the 
  5.41  department of human services 
  5.42  communication systems accounts.  Money 
  5.43  collected by the commissioner for the 
  5.44  use of communication systems must be 
  5.45  deposited in the state communication 
  5.46  systems account and is appropriated to 
  5.47  the commissioner for purposes of this 
  5.48  section. 
  5.49  [ISSUANCE OPERATIONS CENTER.] Payments 
  5.50  to the commissioner from other 
  5.51  governmental units and private 
  5.52  enterprises for (1) services performed 
  5.53  by the issuance operations center, or 
  5.54  (2) reports generated by the payment 
  5.55  and eligibility systems must be 
  5.56  deposited in the state systems account 
  5.57  authorized in Minnesota Statutes, 
  5.58  section 256.014.  These payments are 
  5.59  appropriated to the commissioner for 
  5.60  the operation of the issuance center or 
  5.61  system, in accordance with Minnesota 
  5.62  Statutes, section 256.014. 
  5.63  Subd. 3.  Children's Grants
  5.64  General              38,027,000    40,527,000
  5.65  [GRANT TO PROMOTE COMPLIANCE WITH 
  5.66  INDIAN CHILD WELFARE ACT.] Of this 
  6.1   appropriation, $90,000 each year is for 
  6.2   the commissioner to provide grants 
  6.3   according to Minnesota Statutes, 
  6.4   section 257.3571, subdivision 2a, to 
  6.5   the Indian child welfare defense 
  6.6   corporation to promote statewide 
  6.7   compliance with the Indian Child 
  6.8   Welfare Act. 
  6.9   [CHILDREN'S MENTAL HEALTH.] Of this 
  6.10  appropriation, $500,000 in fiscal year 
  6.11  1998 and $1,000,000 in fiscal year 1999 
  6.12  is for the commissioner to award grants 
  6.13  to counties for children's mental 
  6.14  health services.  These grants may be 
  6.15  used to provide any of the following 
  6.16  services specified in Minnesota 
  6.17  Statutes, section 245.4871; family 
  6.18  community support services under 
  6.19  subdivision 17; day treatment services 
  6.20  under subdivision 10; case management 
  6.21  services under subdivision 3; 
  6.22  professional home-based family 
  6.23  treatment under subdivision 31; and 
  6.24  outpatient services under subdivision 
  6.25  29.  Grant funds must be used to 
  6.26  provide services according to an 
  6.27  individual family community support 
  6.28  plan under Minnesota Statutes, section 
  6.29  245.4882, subdivision 4, that must be 
  6.30  developed using a process that respects 
  6.31  the consumer's identified cultural 
  6.32  community and enhances consumer 
  6.33  empowerment. 
  6.34  In awarding these grants to counties, 
  6.35  the commissioner shall work with the 
  6.36  state advisory council on mental health 
  6.37  to ensure that the process for awarding 
  6.38  funds addresses the unmet need for 
  6.39  services under Minnesota Statutes, 
  6.40  sections 245.487 to 245.4888.  The 
  6.41  commissioner shall also ensure that 
  6.42  these grant funds are not used to 
  6.43  replace existing funds, and that these 
  6.44  grant funds are used to enhance service 
  6.45  capacity at the community level 
  6.46  consistent with Minnesota Statutes, 
  6.47  sections 245.487 to 245.4888. 
  6.48  Subd. 4.  Children's Services Management
  6.49  General               3,161,000     3,192,000
  6.50  Subd. 5.  Basic Health Care Grants
  6.51                Summary by Fund
  6.52  General             819,924,000   938,440,000
  6.53  Health Care
  6.54  Access                  -0-           -0- 
  6.55  The amounts that may be spent from this 
  6.56  appropriation for each purpose are as 
  6.57  follows: 
  6.58  (a) Minnesota Care Grants   
  6.59  Health Care
  6.60  Access                  -0-           -0- 
  7.1   (b) MA Basic Health Care Grants-
  7.2   Families and Children
  7.3   General             315,298,000   365,302,000
  7.4   (c) MA Basic Health Care Grants- 
  7.5   Elderly & Disabled
  7.6   General             335,659,000   404,346,000
  7.7   [PUBLIC HEALTH NURSE ASSESSMENT.] The 
  7.8   reimbursement for public health nurse 
  7.9   visits relating to the provision of 
  7.10  personal care services under Minnesota 
  7.11  Statutes, sections 256B.0625, 
  7.12  subdivision 19a, and 256B.0627, is 
  7.13  $204.36 for the initial assessment 
  7.14  visit and $102.18 for each reassessment 
  7.15  visit. 
  7.16  [SURCHARGE COMPLIANCE.] In the event 
  7.17  that federal financial participation in 
  7.18  the Minnesota medical assistance 
  7.19  program is reduced as a result of a 
  7.20  determination that Minnesota is out of 
  7.21  compliance with Public Law Number 
  7.22  102-234 or its implementing regulations 
  7.23  or with any other federal law designed 
  7.24  to restrict provider tax programs or 
  7.25  intergovernmental transfers, the 
  7.26  commissioner shall appeal the 
  7.27  determination to the fullest extent 
  7.28  permitted by law and may ratably reduce 
  7.29  all medical assistance and general 
  7.30  assistance medical care payments to 
  7.31  providers other than the state of 
  7.32  Minnesota in order to eliminate any 
  7.33  shortfall resulting from the reduced 
  7.34  federal funding.  Any amount later 
  7.35  recovered through the appeals process 
  7.36  shall be used to reimburse providers 
  7.37  for any ratable reductions taken. 
  7.38  (d) General Assistance Medical Care
  7.39  General             168,967,000   168,792,000
  7.40  Health Care
  7.41  Access                  -0-           -0- 
  7.42  [GAMC AND HEALTH CARE ACCESS FUND.] The 
  7.43  appropriation from the health care 
  7.44  access fund for fiscal year 1998 shall 
  7.45  be used for general assistance medical 
  7.46  care expenditures for: (1) adults with 
  7.47  dependent children under 21 whose gross 
  7.48  family income is equal to or less than 
  7.49  275 percent of the federal poverty 
  7.50  guidelines; and (2) adults without 
  7.51  children with earned income and whose 
  7.52  family gross income is between 75 
  7.53  percent of the federal poverty 
  7.54  guidelines and the amount set by 
  7.55  Minnesota Statutes, section 256.9354, 
  7.56  subdivision 5. 
  7.57  [TUBERCULOSIS COST OF CARE.] Of the 
  7.58  general fund appropriation, $89,000 for 
  7.59  the biennium is for the cost of care 
  7.60  that is required to be paid by the 
  8.1   commissioner under Minnesota Statutes, 
  8.2   section 144.4872, to diagnose or treat 
  8.3   tuberculosis carriers. 
  8.4   Subd. 6.  Basic Health Care Management
  8.5   General              23,977,000    24,583,000
  8.6   Health Care
  8.7   Access                  -0-           -0- 
  8.8   [CONSUMER-OWNED HOUSING REVOLVING 
  8.9   ACCOUNT.] Effective the day following 
  8.10  final enactment, for the fiscal year 
  8.11  ending June 30, 1997, the commissioner 
  8.12  of human services may transfer $25,000 
  8.13  of the appropriation for basic health 
  8.14  care management to the commissioner of 
  8.15  the Minnesota housing finance agency to 
  8.16  establish an account to finance the 
  8.17  underwriting requirements of the 
  8.18  federal national mortgage association 
  8.19  pilot program for persons with 
  8.20  disabilities.  Any unexpended balance 
  8.21  in this account does not cancel, but is 
  8.22  available to the commissioner of the 
  8.23  Minnesota housing finance agency for 
  8.24  the ongoing purposes of the account. 
  8.25  (a) Health Care Policy Administration
  8.26  General               4,281,000     4,316,000
  8.27  Health Care
  8.28  Access                  -0-           -0- 
  8.29  [CONSUMER SATISFACTION SURVEY.] Any 
  8.30  federal matching money received through 
  8.31  the medical assistance program for the 
  8.32  consumer satisfaction survey is 
  8.33  appropriated to the commissioner for 
  8.34  this purpose.  The commissioner may 
  8.35  expend the federal money received for 
  8.36  the consumer satisfaction survey in 
  8.37  either year of the biennium. 
  8.38  (b) Health Care Operations
  8.39  General              19,696,000    20,267,000
  8.40  Health Care
  8.41  Access                  -0-           -0- 
  8.42  [PREPAID MEDICAL PROGRAMS.] The 
  8.43  nonfederal share of the prepaid medical 
  8.44  assistance program funds, which are 
  8.45  appropriated to fund county managed 
  8.46  care advocacy and enrollment operating 
  8.47  costs, shall be disbursed as grants 
  8.48  using either a reimbursement or block 
  8.49  grant mechanism. This appropriation may 
  8.50  also be transferred between grants and 
  8.51  a nongrant mechanism, and between 
  8.52  grants and nongrant administration 
  8.53  costs, with the approval of the 
  8.54  commissioner of finance. 
  8.55  [SYSTEMS CONTINUITY.] In the event of 
  8.56  disruption of technical systems or 
  8.57  computer operations, the commissioner 
  8.58  of human services may use available 
  9.1   grant appropriations to ensure 
  9.2   continuity of payments for maintaining 
  9.3   the health, safety, and well-being of 
  9.4   clients served by programs administered 
  9.5   by the department of human services.  
  9.6   Grant funds must be used in a manner 
  9.7   consistent with the original intent of 
  9.8   the appropriation. 
  9.9   Subd. 7.  State-Operated Services
  9.10  General             208,471,000   205,106,000
  9.11  The amounts that may be spent from this 
  9.12  appropriation for each purpose are as 
  9.13  follows: 
  9.14  (a) RTC Facilities
  9.15  General             193,738,000   189,050,000
  9.16  [MITIGATION RELATED TO DD DOWNSIZING 
  9.17  AND MH PILOTS.] Money appropriated to 
  9.18  finance mitigation expenses related to 
  9.19  the downsizing of regional treatment 
  9.20  center developmental disabilities 
  9.21  programs and the establishment of 
  9.22  mental health pilot projects may be 
  9.23  transferred between fiscal years within 
  9.24  the biennium. 
  9.25  [FUNDING FOR GRAVE MARKERS.] Of this 
  9.26  appropriation, $200,000 for the 
  9.27  biennium ending June 30, 1999, is for 
  9.28  the commissioner to fund markers with 
  9.29  the names of individuals whose graves 
  9.30  are located at regional treatment 
  9.31  centers.  This appropriation is 
  9.32  available only after all reasonable 
  9.33  efforts have been made to acquire funds 
  9.34  from private sources to fund the 
  9.35  markers, and after the private funds 
  9.36  collected, if any, have been exhausted. 
  9.37  [RTC CHEMICAL DEPENDENCY PROGRAMS.] 
  9.38  When the operations of the regional 
  9.39  treatment center chemical dependency 
  9.40  fund created in Minnesota Statutes, 
  9.41  section 246.18, subdivision 2, are 
  9.42  impeded by projected cash deficiencies 
  9.43  resulting from delays in the receipt of 
  9.44  grants, dedicated income, or other 
  9.45  similar receivables, and when the 
  9.46  deficiencies would be corrected within 
  9.47  the budget period involved, the 
  9.48  commissioner of finance may transfer 
  9.49  general fund cash reserves into this 
  9.50  account as necessary to meet cash 
  9.51  demands.  The cash flow transfers must 
  9.52  be returned to the general fund in the 
  9.53  fiscal year that the transfer was 
  9.54  made.  Any interest earned on general 
  9.55  fund cash flow transfers accrues to the 
  9.56  general fund and not the regional 
  9.57  treatment center chemical dependency 
  9.58  fund. 
  9.59  [RTC PILOT PROJECT.] The commissioner 
  9.60  may authorize the regional treatment 
  9.61  centers to enter into contracts with 
  9.62  health plans that provide services to 
 10.1   publicly funded clients to provide 
 10.2   services within the diagnostic 
 10.3   categories related to mental illness 
 10.4   and chemical dependency, provided that 
 10.5   the revenue is sufficient to cover 
 10.6   actual costs.  Regional treatment 
 10.7   centers may establish revenue-based 
 10.8   acute care services to be provided 
 10.9   under these contracts, separate from 
 10.10  the appropriation-based services 
 10.11  otherwise provided at the regional 
 10.12  treatment center.  The appropriation to 
 10.13  the regional treatment centers may be 
 10.14  used to cover start-up costs related to 
 10.15  these services, offset by revenue.  The 
 10.16  commissioner, in conjunction with the 
 10.17  commissioner of administration, is 
 10.18  authorized to modify state contract 
 10.19  procedures that would otherwise impede 
 10.20  pilot projects in order for the 
 10.21  facility to participate in managed care 
 10.22  activities.  The commissioner may 
 10.23  delegate the execution of these 
 10.24  contracts to the chief executive 
 10.25  officer of the regional treatment 
 10.26  center.  The commissioner shall report 
 10.27  by January 15, 1998, to the house 
 10.28  health and human services and senate 
 10.29  health and family security committees 
 10.30  on pilot project development and 
 10.31  implementation. 
 10.32  [CAMBRIDGE REGIONAL HUMAN SERVICES 
 10.33  CENTER.] (a) The commissioner shall 
 10.34  maintain capacity at Cambridge regional 
 10.35  human services center and shall 
 10.36  continue to provide residential and 
 10.37  crisis services at Cambridge for 
 10.38  persons with complex behavioral and 
 10.39  social problems committed by the courts 
 10.40  from the Faribault regional center and 
 10.41  Cambridge regional human services 
 10.42  center catchment areas.  Campus 
 10.43  programs shall operate with the aim of 
 10.44  facilitating the return of individuals 
 10.45  with clinically complex behavior and 
 10.46  social problems to community settings 
 10.47  and shall maintain sufficient support 
 10.48  services on campus as needed by the 
 10.49  programs. 
 10.50  (b) The commissioner shall develop and 
 10.51  present a plan and recommendations to 
 10.52  the legislature by January 15, 1998, 
 10.53  for the second phase of the Minnesota 
 10.54  extended treatment options (METO) 
 10.55  program at Cambridge regional human 
 10.56  services center to serve persons with 
 10.57  developmental disabilities who pose a 
 10.58  public risk.  Phase two may increase 
 10.59  the on-campus program capacity of METO 
 10.60  by at least 36 additional beds. 
 10.61  [RTC RESTRUCTURING.] For purposes of 
 10.62  restructuring the regional treatment 
 10.63  centers and state nursing homes, any 
 10.64  regional treatment center or state 
 10.65  nursing home employee whose position is 
 10.66  to be eliminated shall be afforded the 
 10.67  options provided in applicable 
 10.68  collective bargaining agreements.  All 
 11.1   salary and mitigation allocations from 
 11.2   fiscal year 1998 shall be carried 
 11.3   forward into fiscal year 1999.  
 11.4   Provided there is no conflict with any 
 11.5   collective bargaining agreement, any 
 11.6   regional treatment center or state 
 11.7   nursing home position reduction must 
 11.8   only be accomplished through 
 11.9   mitigation, attrition, transfer, and 
 11.10  other measures as provided in state or 
 11.11  applicable collective bargaining 
 11.12  agreements and in Minnesota Statutes, 
 11.13  section 252.50, subdivision 11, and not 
 11.14  through layoff. 
 11.15  [RTC POPULATION.] If the resident 
 11.16  population at the regional treatment 
 11.17  centers is projected to be higher than 
 11.18  the estimates upon which the medical 
 11.19  assistance forecast and budget 
 11.20  recommendations for the 1998-1999 
 11.21  biennium were based, the amount of the 
 11.22  medical assistance appropriation that 
 11.23  is attributable to the cost of services 
 11.24  that would have been provided as an 
 11.25  alternative to regional treatment 
 11.26  center services, including resources 
 11.27  for community placements and waivered 
 11.28  services for persons with mental 
 11.29  retardation and related conditions, is 
 11.30  transferred to the residential 
 11.31  facilities appropriation. 
 11.32  [REPAIRS AND BETTERMENTS.] The 
 11.33  commissioner may transfer unencumbered 
 11.34  appropriation balances between fiscal 
 11.35  years for the state residential 
 11.36  facilities repairs and betterments 
 11.37  account and special equipment. 
 11.38  [PROJECT LABOR.] Wages for project 
 11.39  labor may be paid by the commissioner 
 11.40  of human services out of repairs and 
 11.41  betterments money if the individual is 
 11.42  to be engaged in a construction project 
 11.43  or a repair project of short-term and 
 11.44  nonrecurring nature.  Compensation for 
 11.45  project labor shall be based on the 
 11.46  prevailing wage rates, as defined in 
 11.47  Minnesota Statutes, section 177.42, 
 11.48  subdivision 6.  Project laborers are 
 11.49  excluded from the provisions of 
 11.50  Minnesota Statutes, sections 43A.22 to 
 11.51  43A.30, and shall not be eligible for 
 11.52  state-paid insurance and benefits. 
 11.53  (b) State-Operated Community
 11.54  Services - MI Adults 
 11.55  General               3,907,000     3,976,000
 11.56  (c) State-Operated Community 
 11.57  Services - DD
 11.58  General              10,826,000    12,080,000
 11.59  Subd. 8.  Continuing Care and 
 11.60  Community Support Grants
 11.61  General           1,078,205,000 1,152,992,000
 12.1   The amounts that may be spent from this 
 12.2   appropriation for each purpose are as 
 12.3   follows: 
 12.4   (a) Community Services Block Grants
 12.5       54,203,000     54,203,000 
 12.6   [CSSA TRADITIONAL APPROPRIATION.] 
 12.7   Notwithstanding Minnesota Statutes, 
 12.8   section 256E.06, subdivisions 1 and 2, 
 12.9   the appropriations available under that 
 12.10  section in fiscal years 1998 and 1999 
 12.11  must be distributed to each county 
 12.12  proportionately to the aid received by 
 12.13  the county in calendar year 1996.  The 
 12.14  commissioner, in consultation with 
 12.15  counties, shall study the formula 
 12.16  limitations in subdivision 2 of that 
 12.17  section, and report findings and any 
 12.18  recommendations for revision of the 
 12.19  CSSA formula and its formula limitation 
 12.20  provisions to the legislature by 
 12.21  January 15, 1998. 
 12.22  (b) Consumer Support Grants
 12.23       1,757,000      1,757,000 
 12.24  (c) Aging Adult Service Grants
 12.25       8,260,000      8,263,000 
 12.26  [OMBUDSMAN FOR OLDER MINNESOTANS.] Of 
 12.27  this appropriation, $225,000 each year 
 12.28  is for the board on aging's ombudsman 
 12.29  for older Minnesotans to expand its 
 12.30  activities relating to home care 
 12.31  services and other non-institutional 
 12.32  services, and to develop and implement 
 12.33  a continuing education program for 
 12.34  ombudsman volunteers. 
 12.35  [HEALTH CARE CONSUMER ASSISTANCE 
 12.36  GRANTS.] (a) Of this appropriation, 
 12.37  $125,000 in fiscal year 1998 and 
 12.38  $125,000 in fiscal year 1999 is to the 
 12.39  commissioner for the board on aging to 
 12.40  award grants for health insurance 
 12.41  counseling and assistance to the area 
 12.42  agencies on aging.  
 12.43  (b) The board shall explore 
 12.44  opportunities for obtaining alternative 
 12.45  funding from nonstate sources, 
 12.46  including contributions from 
 12.47  individuals seeking health insurance 
 12.48  counseling services. 
 12.49  [LIVING-AT-HOME/BLOCK NURSE PROGRAMS.] 
 12.50  Of this appropriation, $620,000 each 
 12.51  fiscal year is for the commissioner to 
 12.52  provide funding to 31 additional 
 12.53  living-at-home/block nurse programs; 
 12.54  $70,000 for the biennium is for the 
 12.55  commissioner to increase funding for 
 12.56  certain living-at-home/block nurse 
 12.57  programs so that funding for all 
 12.58  programs is at the same level for each 
 12.59  fiscal year; and $60,000 each fiscal 
 12.60  year is for the commissioner to provide 
 13.1   additional contract funding for the 
 13.2   organization awarded the contract for 
 13.3   the living-at-home/block nurse program. 
 13.4   [COUNTY MAINTENANCE; MEALS; AGING.] The 
 13.5   supplemental funding for nutrition 
 13.6   programs serving counties where 
 13.7   congregate and home-delivered meals 
 13.8   were locally financed prior to 
 13.9   participation in the nutrition program 
 13.10  of the Older Americans Act shall be 
 13.11  awarded at no less than the same levels 
 13.12  as in fiscal year 1997. 
 13.13  (d) Deaf and Hard-of-Hearing 
 13.14  Services Grants
 13.15       1,599,000      1,549,000 
 13.16  [ASSISTANCE DOGS.] Of this 
 13.17  appropriation, $50,000 for the biennium 
 13.18  is for the commissioner to provide 
 13.19  grants to Minnesota nonprofit 
 13.20  organizations that train or provide 
 13.21  assistance dogs for persons with 
 13.22  disabilities. 
 13.23  [GRANT FOR SERVICES TO DEAF-BLIND 
 13.24  CHILDREN AND PERSONS.] Of this 
 13.25  appropriation, $200,000 for the 
 13.26  biennium is for a grant to an 
 13.27  organization that provides services to 
 13.28  deaf-blind persons.  The grant must be 
 13.29  used to provide additional services to 
 13.30  deaf-blind children and their 
 13.31  families.  Such services may include 
 13.32  providing intervenors to assist 
 13.33  deaf-blind children in participating in 
 13.34  their communities, and family education 
 13.35  specialists to teach siblings and 
 13.36  parents skills to support the 
 13.37  deaf-blind child in the family.  The 
 13.38  commissioner shall use a 
 13.39  request-for-proposal process to award 
 13.40  the grants in this paragraph. 
 13.41  Of this appropriation, $200,000 for the 
 13.42  biennium is for a grant to an 
 13.43  organization that provides services to 
 13.44  deaf-blind persons.  The grant must be 
 13.45  used to provide assistance to 
 13.46  deaf-blind persons who are working 
 13.47  towards establishing and maintaining 
 13.48  independence.  The commissioner shall 
 13.49  use a request-for-proposal process to 
 13.50  award the grants in this paragraph. 
 13.51  [GRANT FOR SERVICES TO DEAF PERSONS 
 13.52  WITH MENTAL ILLNESS.] Of this 
 13.53  appropriation, $75,000 each year is for 
 13.54  a grant to a nonprofit agency that 
 13.55  serves deaf and hard-of-hearing adults 
 13.56  with mental illness through residential 
 13.57  programs and supported housing outreach 
 13.58  activities.  The grant must be used to 
 13.59  expand community support services for 
 13.60  deaf and hard-of-hearing adults with 
 13.61  mental illness who use or wish to use 
 13.62  sign language as their primary means of 
 13.63  communication. 
 14.1   [ASSESSMENTS FOR DEAF, HARD-OF-HEARING 
 14.2   AND DEAF-BLIND CHILDREN.] Of this 
 14.3   appropriation, $200,000 each year is 
 14.4   for the commissioner to establish a 
 14.5   grant program for deaf, hard-of-hearing 
 14.6   and deaf-blind children in the state.  
 14.7   The grant program shall be used to 
 14.8   provide specialized statewide 
 14.9   psychological and social assessments, 
 14.10  family assessments, and school and 
 14.11  family consultation and training.  
 14.12  Services provided through this program 
 14.13  must be provided in cooperation with 
 14.14  the Minnesota resource center; the 
 14.15  department of children, families, and 
 14.16  learning; the St. Paul-Ramsey health 
 14.17  and wellness program serving deaf and 
 14.18  hard-of-hearing people; and greater 
 14.19  Minnesota community mental health 
 14.20  centers. 
 14.21  (e) Mental Health Grants
 14.22      47,603,000     48,681,000 
 14.23  [ADOLESCENT COMPULSIVE GAMBLING GRANT.] 
 14.24  $125,000 for fiscal year 1998 and 
 14.25  $125,000 for fiscal year 1999 shall be 
 14.26  transferred by the director of the 
 14.27  lottery from the lottery prize fund 
 14.28  created under Minnesota Statutes, 
 14.29  section 349A.10, subdivision 2, to the 
 14.30  general fund.  $125,000 for fiscal year 
 14.31  1998 and $125,000 for fiscal year 1999 
 14.32  is appropriated from the general fund 
 14.33  to the commissioner for the purposes of 
 14.34  a grant to a compulsive gambling 
 14.35  council located in St. Louis county for 
 14.36  a statewide compulsive gambling 
 14.37  prevention and education project for 
 14.38  adolescents. 
 14.39  [WOMEN'S MENTAL HEALTH CRISIS SERVICES 
 14.40  PILOT.] Of this appropriation, $250,000 
 14.41  in fiscal year 1998 is for the 
 14.42  commissioner to develop a one-year 
 14.43  pilot project community-based crisis 
 14.44  center for women who are experiencing a 
 14.45  mental health crisis as a result of 
 14.46  childhood physical or sexual abuse.  
 14.47  The commissioner shall provide a grant 
 14.48  to Hennepin county to contract with a 
 14.49  four-bed adult foster care facility to 
 14.50  provide these services.  The 
 14.51  commissioner shall apply to the federal 
 14.52  health care financing administration 
 14.53  for all necessary waivers of the 
 14.54  medical assistance requirements for 
 14.55  funding of the mental health services 
 14.56  so that the services provided through 
 14.57  the pilot project may be reimbursed by 
 14.58  medical assistance, effective July 1, 
 14.59  1998, or upon receipt of federal 
 14.60  approval, whichever occurs first. 
 14.61  (f) Developmental Disabilities
 14.62  Support Grants
 14.63       6,278,000      6,228,000 
 14.64  [EPILEPSY LIVING SKILLS.] Of this 
 15.1   appropriation, $60,000 each year is for 
 15.2   the purposes of providing increased 
 15.3   funding for the living skills training 
 15.4   program for persons with intractable 
 15.5   epilepsy who need assistance in the 
 15.6   transition to independent living.  This 
 15.7   amount must be included in the base 
 15.8   amount for this program. 
 15.9   (g) Medical Assistance Long-Term 
 15.10  Care Waivers and Home Care
 15.11     237,254,000    273,979,000 
 15.12  [COUNTY WAIVERED SERVICES RESERVE.] 
 15.13  Notwithstanding the provisions of 
 15.14  Minnesota Statutes, section 256B.092, 
 15.15  subdivision 4, and Minnesota Rules, 
 15.16  part 9525.1830, subpart 2, the 
 15.17  commissioner may approve written 
 15.18  procedures and criteria for the 
 15.19  allocation of home- and community-based 
 15.20  waivered services funding for persons 
 15.21  with mental retardation or related 
 15.22  conditions which enables a county to 
 15.23  maintain a reserve resource account.  
 15.24  The reserve resource account may not 
 15.25  exceed five percent of the county 
 15.26  agency's total annual allocation of 
 15.27  home- and community-based waivered 
 15.28  services funds.  The reserve may be 
 15.29  utilized to ensure the county's ability 
 15.30  to meet the changing needs of current 
 15.31  recipients, to ensure the health and 
 15.32  safety needs of current recipients, or 
 15.33  to provide short-term emergency 
 15.34  intervention care to eligible waiver 
 15.35  recipients. 
 15.36  (h) Medical Assistance Long-Term
 15.37  Care Facilities
 15.38     570,518,000    593,797,000 
 15.39  [ICF/MR AND NURSING FACILITY 
 15.40  INFLATION.] The commissioner of human 
 15.41  services shall grant inflation 
 15.42  adjustments for nursing facilities with 
 15.43  rate years beginning during the 
 15.44  biennium according to Minnesota 
 15.45  Statutes, section 256B.431, and shall 
 15.46  grant inflation adjustments for 
 15.47  intermediate care facilities for 
 15.48  persons with mental retardation or 
 15.49  related conditions with rate years 
 15.50  beginning during the biennium according 
 15.51  to Minnesota Statutes, section 256B.501.
 15.52  [ICF/MR RATE EXEMPTIONS.] For the rate 
 15.53  year beginning October 1, 1997, the 
 15.54  commissioner shall exempt ICF/MR 
 15.55  facilities from reductions to the 
 15.56  payment rates under Minnesota Statutes, 
 15.57  section 256B.501, subdivision 5b, 
 15.58  paragraph (d), clause (6), if the 
 15.59  facility:  (1) has had a settle-up 
 15.60  payment rate established in the 
 15.61  reporting year preceding the rate year 
 15.62  for a one-time rate adjustment; (2) is 
 15.63  a newly established facility; (3) is an 
 15.64  A to B conversion project under the 
 16.1   payment rule; (4) has a payment rate 
 16.2   subject to a community conversion 
 16.3   project under Minnesota Statutes, 
 16.4   section 252.292; (5) has a payment rate 
 16.5   established under Minnesota Statutes, 
 16.6   section 245A.12 or 245A.13; or (6) is a 
 16.7   facility created by the relocation of 
 16.8   more than 25 percent of the capacity of 
 16.9   a related facility during the reporting 
 16.10  year. 
 16.11  (i) Alternative Care Grants  
 16.12  General              48,610,000    53,623,000
 16.13  [PREADMISSION SCREENING TRANSFER.] 
 16.14  Effective the day following final 
 16.15  enactment, up to $40,000 of the 
 16.16  appropriation for preadmission 
 16.17  screening and alternative care for 
 16.18  fiscal year 1997 may be transferred to 
 16.19  the health care administration account 
 16.20  to pay the state's share of county 
 16.21  claims for conducting nursing home 
 16.22  assessments for persons with mental 
 16.23  illness or mental retardation as 
 16.24  required by Public Law Number 100-203. 
 16.25  [ALTERNATIVE CARE TRANSFER.] Any money 
 16.26  allocated to the alternative care 
 16.27  program that is not spent for the 
 16.28  purposes indicated does not cancel but 
 16.29  shall be transferred to the medical 
 16.30  assistance account. 
 16.31  [PREADMISSION SCREENING AMOUNT.] The 
 16.32  preadmission screening payment to all 
 16.33  counties shall continue at the payment 
 16.34  amount in effect for fiscal year 1997. 
 16.35  [PAS/AC APPROPRIATION.] The 
 16.36  commissioner may expend the money 
 16.37  appropriated for preadmission screening 
 16.38  and the alternative care program for 
 16.39  these purposes in either year of the 
 16.40  biennium. 
 16.41  (j) Group Residential Housing
 16.42  General              62,115,000    69,276,000
 16.43  (k) Chemical Dependency
 16.44  Entitlement Grants
 16.45  General              35,643,000    37,271,000
 16.46  [CHEMICAL DEPENDENCY FUNDS TRANSFER.] 
 16.47  $11,340,000 from the consolidated 
 16.48  chemical dependency general reserve 
 16.49  fund available in fiscal year 1998 is 
 16.50  transferred to the general fund. 
 16.51  (l) Chemical Dependency 
 16.52  Nonentitlement Grants
 16.53  General               4,365,000     4,365,000
 16.54  [DETOXIFICATION TRANSPORTATION.] Any 
 16.55  amounts remaining after detoxification 
 16.56  transportation funds are allocated for 
 16.57  fiscal year 1997 under Minnesota 
 17.1   Statutes, section 254A.17, subdivision 
 17.2   3, do not cancel, but must be 
 17.3   reallocated to counties in proportion 
 17.4   to their unmet need.  This provision is 
 17.5   effective the day following final 
 17.6   enactment. 
 17.7   Subd. 9.  Continuing Care and
 17.8   Community Support Management
 17.9   General              20,855,000    21,654,000
 17.10  State Government
 17.11  Special Revenue         111,000       112,000
 17.12  [QUALITY ASSURANCE PILOT PROJECT.] (a) 
 17.13  Of this appropriation, $114,200 each 
 17.14  year is for the commissioner to 
 17.15  transfer to the quality assurance 
 17.16  commission for the purposes of 
 17.17  Minnesota Statutes, section 256B.0951; 
 17.18  $10,000 each year is for the 
 17.19  commissioner to contract with an 
 17.20  independent entity to conduct a 
 17.21  financial review under Minnesota 
 17.22  Statutes, section 256B.0955, paragraph 
 17.23  (e); and $5,000 each year is for the 
 17.24  commissioner to establish and implement 
 17.25  an ongoing evaluation process under 
 17.26  Minnesota Statutes, section 256B.0955, 
 17.27  paragraph (d). 
 17.28  (b) Of this appropriation, $210,800 in 
 17.29  fiscal year 1998 and $241,800 in fiscal 
 17.30  year 1999 is for the commissioner to 
 17.31  provide grants to counties 
 17.32  participating in the alternative 
 17.33  quality assurance licensing system 
 17.34  under Minnesota Statutes, section 
 17.35  256B.0953.  This appropriation shall be 
 17.36  transferred to the counties that choose 
 17.37  by January 15, 1998 to participate in 
 17.38  the alternative licensing system 
 17.39  beginning July 1, 1998.  Each 
 17.40  participating county shall receive a 
 17.41  pro rata share of this appropriation, 
 17.42  based upon the county's calendar year 
 17.43  1997 case management caseload for 
 17.44  persons with developmental disabilities.
 17.45  [JOINT-PURCHASER DEMO PROJECT 
 17.46  START-UP.] Of this appropriation, 
 17.47  $80,000 for the biennium ending June 
 17.48  30, 1999, is for a grant to the Goodhue 
 17.49  and Wabasha public health board to be 
 17.50  used for the development and start-up 
 17.51  operational costs for a joint purchaser 
 17.52  demonstration project described in Laws 
 17.53  1995, chapter 207, article 6, section 
 17.54  119, in Goodhue and Wabasha counties.  
 17.55  This is a one-time appropriation and 
 17.56  shall not become part of the base for 
 17.57  the 2000-2001 biennial budget. 
 17.58  [PILOT PROJECT FOR ASSISTED LIVING 
 17.59  SERVICES FOR SENIOR CITIZENS IN PUBLIC 
 17.60  HOUSING.] Of this appropriation, 
 17.61  $50,000 in fiscal year 1998 is for a 
 17.62  pilot project to provide assisted 
 17.63  living services for unserved and 
 17.64  underserved frail elderly and disabled 
 18.1   persons with a focus on those who 
 18.2   experience language and cultural 
 18.3   barriers.  The project shall be 
 18.4   designed to offer frail elderly persons 
 18.5   an opportunity to receive 
 18.6   community-based support services in a 
 18.7   public housing setting to enable them 
 18.8   to remain in their homes.  The project 
 18.9   shall also serve younger disabled 
 18.10  persons on waiver programs who live in 
 18.11  public housing and would otherwise be 
 18.12  in nursing homes.  The commissioner 
 18.13  shall provide pilot project funding to 
 18.14  Hennepin county to contract with the 
 18.15  Korean service center at the Cedars 
 18.16  high-rises.  The center shall agree to 
 18.17  do the following: 
 18.18  (1) facilitate or provide needed 
 18.19  community support services while taking 
 18.20  advantage of current local, state, and 
 18.21  federal programs that provide services 
 18.22  to senior citizens and handicapped 
 18.23  individuals; 
 18.24  (2) negotiate appropriate agreements 
 18.25  with the Minneapolis public housing 
 18.26  authority and Hennepin county; 
 18.27  (3) ensure that all participants are 
 18.28  screened for eligibility for services 
 18.29  by Hennepin county; 
 18.30  (4) become a licensed home care service 
 18.31  provider or subcontract with a licensed 
 18.32  provider to deliver needed services; 
 18.33  (5) contract for meals to be provided 
 18.34  through its congregate dining program; 
 18.35  and 
 18.36  (6) form other partnerships as needed 
 18.37  to ensure the development of a 
 18.38  successful, culturally sensitive 
 18.39  program for meeting the needs of 
 18.40  Korean, Southeast Asian, and other 
 18.41  frail elderly and disabled persons 
 18.42  living in public housing in southeast 
 18.43  Minneapolis. 
 18.44  The grantee must have the project 
 18.45  evaluated by an outside evaluator, 
 18.46  based on measurement standards 
 18.47  developed by the commissioner.  The 
 18.48  grantee must submit the evaluation to 
 18.49  the commissioner no later than December 
 18.50  15, 1999, and the commissioner must 
 18.51  submit the evaluation with 
 18.52  recommendations on the project's 
 18.53  continuation and expansion by January 
 18.54  15, 2000. 
 18.55  [TRANSIT SERVICE SUBSIDIES.] The 
 18.56  commissioner shall examine 
 18.57  circumstances where providers receive 
 18.58  state or federal funds for transit 
 18.59  service operating subsidies or to 
 18.60  purchase transit equipment, and receive 
 18.61  medical assistance reimbursement for 
 18.62  medical transportation services in 
 18.63  amounts greater than the fee charged by 
 19.1   the provider to persons from whom 
 19.2   services are not reimbursed by medical 
 19.3   assistance. 
 19.4   The commissioner's analysis may involve 
 19.5   assistance from the commissioner of the 
 19.6   department of health. 
 19.7   The commissioner shall submit a report 
 19.8   on the study to the legislature by 
 19.9   January 15, 1998. 
 19.10  Subd. 10.  Economic Support Grants
 19.11  General             213,790,000   211,036,000
 19.12  [GIFTS.] Notwithstanding any other law 
 19.13  to the contrary, the commissioner may 
 19.14  accept on behalf of the state 
 19.15  additional funding from sources other 
 19.16  than state funds for the purpose of 
 19.17  financing assistance program grants 
 19.18  costs or nongrant administrative 
 19.19  costs.  All such additional funding is 
 19.20  appropriated to the commissioner for 
 19.21  use as designated by the grantee of 
 19.22  funding. 
 19.23  The amounts that may be spent from this 
 19.24  appropriation for each purpose are as 
 19.25  follows: 
 19.26  (a) Assistance to Families Grants
 19.27  General              89,518,000   110,688,000
 19.28  (b) Assistance to 
 19.29  Families - County
 19.30  Management              -0-           -0-    
 19.31  (c) Work Grants              
 19.32  General               5,878,000     5,884,000
 19.33  (d) Minnesota Family 
 19.34  Investment Plan
 19.35  General              27,433,000     5,037,000
 19.36  [WELFARE REFORM CARRYOVER.] Unexpended 
 19.37  grant funds for the statewide 
 19.38  implementation of the Minnesota family 
 19.39  investment program and employment and 
 19.40  training programs and for the work 
 19.41  first and work focused pilot programs 
 19.42  appropriated in fiscal year 1998 for 
 19.43  the implementation of welfare reform 
 19.44  initiatives do not cancel and are 
 19.45  available to the commissioner for these 
 19.46  purposes in fiscal year 1999. 
 19.47  (e) Aid to Families With     
 19.48  Dependent Children
 19.49  General                 619,000       -0- 
 19.50  [AFDC SUPPLEMENTARY GRANTS.] Of the 
 19.51  appropriation for aid to families with 
 19.52  dependent children, the commissioner 
 19.53  shall provide supplementary grants not 
 19.54  to exceed $200,000 a year for aid to 
 20.1   families with dependent children until 
 20.2   the AFDC program no longer exists.  The 
 20.3   commissioner shall include the 
 20.4   following costs in determining the 
 20.5   amount of the supplementary grants:  
 20.6   major home repairs, repair of major 
 20.7   home appliances, utility recaps, 
 20.8   supplementary dietary needs not covered 
 20.9   by medical assistance, and replacements 
 20.10  of furnishings and essential major 
 20.11  appliances. 
 20.12  [CASH BENEFITS IN ADVANCE.] The 
 20.13  commissioner, with the advance approval 
 20.14  of the commissioner of finance, is 
 20.15  authorized to issue cash assistance 
 20.16  benefits up to three days before the 
 20.17  first day of each month, including 
 20.18  three days before the start of each 
 20.19  state fiscal year.  Of the money 
 20.20  appropriated for cash assistance grants 
 20.21  for each fiscal year, up to three 
 20.22  percent of the annual state 
 20.23  appropriation is available to the 
 20.24  commissioner in the previous fiscal 
 20.25  year.  If that amount is insufficient 
 20.26  for the costs incurred, an additional 
 20.27  amount of the appropriation as needed 
 20.28  may be transferred with the advance 
 20.29  approval of the commissioner of 
 20.30  finance.  This paragraph is effective 
 20.31  the day following final enactment. 
 20.32  (f) Child Support Enforcement
 20.33  General               5,790,000     5,372,000
 20.34  [CHILD SUPPORT PAYMENT CENTER.] 
 20.35  Payments to the commissioner from other 
 20.36  governmental units, private 
 20.37  enterprises, and individuals for 
 20.38  services performed by the Child Support 
 20.39  Payment Center must be deposited in the 
 20.40  state systems account authorized in 
 20.41  Minnesota Statutes, section 256.014.  
 20.42  These payments are appropriated to the 
 20.43  commissioner for the operation of the 
 20.44  Child Support Payment Center or system, 
 20.45  in accordance with Minnesota Statutes, 
 20.46  section 256.014. 
 20.47  [CHILD SUPPORT ENFORCEMENT PAYMENT 
 20.48  CENTER RECOUPMENT ACCOUNT.] The child 
 20.49  support enforcement payment center is 
 20.50  authorized to establish an account to 
 20.51  cover checks issued in error or in 
 20.52  cases where insufficient funds are 
 20.53  available to pay the checks.  All 
 20.54  recoupments against payments from the 
 20.55  account must be deposited in the child 
 20.56  support enforcement payment center 
 20.57  recoupment account and are appropriated 
 20.58  to the commissioner for the purposes of 
 20.59  the account.  Any unexpended balance in 
 20.60  the account does not cancel, but is 
 20.61  available until expended.  For the 
 20.62  period June 1, 1997, to June 30, 1997, 
 20.63  the commissioner may transfer general 
 20.64  fund administrative money to the child 
 20.65  support enforcement payment center 
 20.66  recoupment account to cover 
 21.1   underfinanced and unfunded checks 
 21.2   during this period only.  This 
 21.3   paragraph is effective the day 
 21.4   following final enactment. 
 21.5   [CHILD SUPPORT ENFORCEMENT CARRYOVER.] 
 21.6   Unexpended funds for child support 
 21.7   enforcement grants and county 
 21.8   performance incentives for fiscal year 
 21.9   1998 do not cancel but are available to 
 21.10  the commissioner for these purposes for 
 21.11  fiscal year 1999. 
 21.12  [COOPERATION FOR CHILDREN, PARENT 
 21.13  EDUCATION.] Of this appropriation the 
 21.14  commissioner shall transfer to the 
 21.15  state court administrator $100,000 in 
 21.16  fiscal year 1998 and $100,000 in fiscal 
 21.17  year 1999 for the implementation of the 
 21.18  cooperation for the children program 
 21.19  and the parent education program.  The 
 21.20  commissioner shall also request all 
 21.21  federal funds available for visitation 
 21.22  access grants under the authority of 
 21.23  the Personal Responsibility and Work 
 21.24  Opportunity Act of 1996.  The 
 21.25  commissioner may accept on behalf of 
 21.26  the state any federal funding for the 
 21.27  purpose of financing visitation access 
 21.28  programs and shall transfer any funds 
 21.29  received for this purpose to the state 
 21.30  court administrator for implementation 
 21.31  of the parent education program and the 
 21.32  cooperation for the children program.  
 21.33  The state court administrator shall 
 21.34  monitor, evaluate and report on such 
 21.35  programs in accordance with any 
 21.36  applicable federal regulations. 
 21.37  [CHILD SUPPORT ENFORCEMENT 
 21.38  APPROPRIATIONS.] Of this appropriation 
 21.39  for the biennium ending June 30, 1999, 
 21.40  the commissioner shall transfer: 
 21.41  $150,000 to the attorney general for 
 21.42  the continuation of the public 
 21.43  education campaign specified in 
 21.44  Minnesota Statutes, section 8.35; and 
 21.45  $68,000 to the attorney general for the 
 21.46  purposes specified in Minnesota 
 21.47  Statutes, section 518.575.  Any balance 
 21.48  remaining in the first year does not 
 21.49  cancel, but is available in the second 
 21.50  year. 
 21.51  (g) General Assistance
 21.52  General              57,466,000    54,010,000
 21.53  [GA STANDARD.] The commissioner shall 
 21.54  set the monthly standard of assistance 
 21.55  for general assistance units consisting 
 21.56  of an adult recipient who is childless 
 21.57  and unmarried or living apart from his 
 21.58  or her parents or a legal guardian at 
 21.59  $203. 
 21.60  (h) Minnesota Supplemental Aid
 21.61  General              25,181,000    28,440,000
 21.62  (i) Refugee Services         
 22.1   General               1,905,000     1,605,000
 22.2   Subd. 11.  Economic Support  
 22.3   Management
 22.4   General              33,808,000    31,739,000
 22.5   Health Care
 22.6   Access                  -0-           -0- 
 22.7   The amounts that may be spent from this 
 22.8   appropriation for each purpose are as 
 22.9   follows: 
 22.10  (a) Economic Support Policy  
 22.11  Administration
 22.12  General              10,731,000     9,013,000
 22.13  [COMBINED MANUAL PRODUCTION COSTS.] The 
 22.14  commissioner may increase the fee 
 22.15  charged to, and may retain money 
 22.16  received from, individuals and private 
 22.17  entities in order to recover the 
 22.18  difference between the costs of 
 22.19  producing the department of human 
 22.20  services combined manual and the 
 22.21  subsidized price charged to individuals 
 22.22  and private entities on January 1, 
 22.23  1996.  This provision does not apply to 
 22.24  government agencies and nonprofit 
 22.25  agencies serving the legal or social 
 22.26  service needs of clients. 
 22.27  [PLAN FOR TRIBAL OPERATION OF FAMILY 
 22.28  ASSISTANCE PROGRAM.] Of this 
 22.29  appropriation, $148,000 is for the 
 22.30  commissioner to assist tribes in the 
 22.31  development of a plan for providing 
 22.32  state funds in support of a family 
 22.33  assistance program administered by 
 22.34  Indian tribes that have a reservation 
 22.35  in Minnesota and that have federal 
 22.36  approval to operate a tribal program.  
 22.37  The commissioner and the tribes shall 
 22.38  collaborate in the development of the 
 22.39  plan.  The plan shall be reported to 
 22.40  the legislature no later than February 
 22.41  15, 1998. 
 22.42  [NEW CHANCE PROGRAM.] Of this 
 22.43  appropriation, $140,000 each year is 
 22.44  for a grant to the new chance program.  
 22.45  The new chance program shall provide 
 22.46  comprehensive services through a 
 22.47  private, nonprofit agency to young 
 22.48  parents in Hennepin county who have 
 22.49  dropped out of school and are receiving 
 22.50  public assistance.  The program 
 22.51  administrator shall report annually to 
 22.52  the commissioner on skills development, 
 22.53  education, job training, and job 
 22.54  placement outcomes for program 
 22.55  participants. 
 22.56  (b) Economic Support Policy  
 22.57  Operations
 22.58  General              28,477,000    28,126,000
 22.59  Health Care
 23.1   Access                  -0-           -0-
 23.2   [CITIZENSHIP TRAINING.] The funds 
 23.3   appropriated for citizenship training 
 23.4   shall be awarded to nonprofit 
 23.5   organizations through a competitive 
 23.6   bidding process based on criteria 
 23.7   established by the commissioner of 
 23.8   human services.  Notice of the 
 23.9   availability of funds shall be 
 23.10  published in the State Register. 
 23.11  [ELECTRONIC BENEFIT TRANSFER (EBT) 
 23.12  COUNTY ALLOCATION.] Of the amount 
 23.13  appropriated for electronic benefit 
 23.14  transfer, an allocation shall be made 
 23.15  each year to counties for EBT-related 
 23.16  expenses. One hundred percent of the 
 23.17  appropriation shall be allocated to 
 23.18  counties based on each county's average 
 23.19  monthly number of food stamp households 
 23.20  as a proportion of statewide average 
 23.21  monthly food stamp households for the 
 23.22  fiscal year ending June 30, 1996. 
 23.23  [FRAUD PREVENTION AND CONTROL FUNDING.] 
 23.24  Unexpended funds appropriated for the 
 23.25  provision of program integrity 
 23.26  activities for fiscal year 1998 are 
 23.27  also available to the commissioner to 
 23.28  fund fraud prevention and control 
 23.29  initiatives, and do not cancel but are 
 23.30  available to the commissioner for these 
 23.31  purposes for fiscal year 1999.  
 23.32  Unexpended funds may be transferred 
 23.33  between the fraud prevention 
 23.34  investigation program and fraud control 
 23.35  programs to promote the provisions of 
 23.36  Minnesota Statutes, sections 256.983 
 23.37  and 256.9861. 
 23.38  [TRIBAL OPERATION OF ASSISTANCE 
 23.39  PROGRAMS; FEASIBILITY CONSIDERED.] The 
 23.40  commissioner of human services, in 
 23.41  consultation with the federally- 
 23.42  recognized Indian tribes, the 
 23.43  commissioner of children, families, and 
 23.44  learning and the commissioner of 
 23.45  economic security, shall explore the 
 23.46  feasibility of having the 
 23.47  federally-recognized Indian tribes 
 23.48  administer or operate state and 
 23.49  federally funded programs such as 
 23.50  MFIP-S, diversionary assistance, food 
 23.51  stamps, general assistance, emergency 
 23.52  assistance, child support enforcement, 
 23.53  and child care assistance. The 
 23.54  exploration shall consider the state 
 23.55  and federal funding needed for the 
 23.56  programs under consideration. 
 23.57  (c) Assistance to Families   
 23.58  State Management
 23.59         -0-            -0-     
 23.60  Subd. 12.  Federal TANF Funds       
 23.61  [TRANSFER TO TANF CHILD CARE.] Of this 
 23.62  appropriation, $5,400,000 in fiscal 
 23.63  year 1998 from the federal TANF block 
 24.1   grant and $5,400,000 in fiscal year 
 24.2   1999 from the federal TANF block grant 
 24.3   is transferred to the commissioner of 
 24.4   children, families, and learning for 
 24.5   the purposes of providing TANF child 
 24.6   care assistance. 
 24.7   Sec. 3.  COMMISSIONER OF HEALTH 
 24.8   Subdivision 1.  Total 
 24.9   Appropriation                         81,475,000     80,371,000
 24.10                Summary by Fund
 24.11  General              59,395,000    58,271,000
 24.12  Metropolitan 
 24.13  Landfill Contingency
 24.14  Action Fund             193,000       193,000
 24.15  State Government
 24.16  Special Revenue      21,737,000    21,907,000
 24.17  Health Care 
 24.18  Access                  -0-           -0-    
 24.19  Minnesota Resources     150,000       -0-    
 24.20  [LANDFILL CONTINGENCY.] The 
 24.21  appropriation from the metropolitan 
 24.22  landfill contingency action fund is for 
 24.23  monitoring well water supplies and 
 24.24  conducting health assessments in the 
 24.25  metropolitan area. 
 24.26  [FEES TO COVER COSTS, RECOVER 
 24.27  DEFICITS.] The commissioner of health 
 24.28  shall set fees to cover current program 
 24.29  costs and recover deficits. 
 24.30  Subd. 2.  Health Systems
 24.31  and Special Populations               56,195,000     56,098,000
 24.32                Summary by Fund
 24.33  General              47,096,000    47,026,000
 24.34  State Government
 24.35  Special Revenue       9,099,000     9,072,000
 24.36  Health Care
 24.37  Access                  -0-           -0-   
 24.38  [FEES; DRUG AND ALCOHOL COUNSELOR 
 24.39  LICENSE.] When setting fees for the 
 24.40  drug and alcohol counselor license, the 
 24.41  department is exempt from Minnesota 
 24.42  Statutes, section 16A.1285, subdivision 
 24.43  2. 
 24.44  [FEES; HEARING INSTRUMENT DISPENSER 
 24.45  LICENSE.] When setting fees for the 
 24.46  hearing instrument dispenser license, 
 24.47  the department is exempt from Minnesota 
 24.48  Statutes, section 16A.1285, subdivision 
 24.49  2. 
 24.50  [STATE VITAL RECORDS REDESIGN PROJECT 
 24.51  ACCOUNT.] The amount appropriated for 
 24.52  the vital records redesign project 
 24.53  shall be available until expended for 
 25.1   ongoing development and operations. 
 25.2   [WIC PROGRAM.] Of this appropriation, 
 25.3   $650,000 in 1998 is provided to 
 25.4   maintain services of the program, 
 25.5   $700,000 in 1998 and $700,000 in 1999 
 25.6   is added to the base level funding for 
 25.7   the WIC food program in order to 
 25.8   maintain the existing level of the 
 25.9   program, and $100,000 in 1998 is for 
 25.10  the commissioner to develop and 
 25.11  implement an outreach program to 
 25.12  apprise potential recipients of the WIC 
 25.13  food program of the importance of good 
 25.14  nutrition and the availability of the 
 25.15  program. 
 25.16  [WIC TRANSFERS.] General fund 
 25.17  appropriations for the women, infants, 
 25.18  and children food supplement program 
 25.19  (WIC) are available for either year of 
 25.20  the biennium.  Transfers of 
 25.21  appropriations between fiscal years 
 25.22  must be for the purpose of maximizing 
 25.23  federal funds or minimizing 
 25.24  fluctuations in the number of 
 25.25  participants.  
 25.26  [LOCAL PUBLIC HEALTH FINANCING.] Of the 
 25.27  appropriation, $6,026,000 in fiscal 
 25.28  year 1998 and $5,255,000 in fiscal year 
 25.29  1999 is for local public health 
 25.30  financing.  Of this amount, $5,476,000 
 25.31  in fiscal year 1998 and $4,705,000 in 
 25.32  fiscal year 1999 shall be distributed 
 25.33  according to the community health 
 25.34  services subsidy formula in Minnesota 
 25.35  Statutes, section 145A.13.  No more 
 25.36  than $550,000 each year is for 
 25.37  technical assistance provided by the 
 25.38  commissioner under Minnesota Statutes, 
 25.39  section 145A.12. 
 25.40  [JUVENILE ASSESSMENT CENTERS.] Of this 
 25.41  appropriation, $500,000 each year of 
 25.42  the biennium ending June 30, 1999, is 
 25.43  for the commissioner to develop and 
 25.44  pilot up to three juvenile assessment 
 25.45  centers, in partnership with the 
 25.46  commissioner of children, families and 
 25.47  learning.  The commissioner may 
 25.48  transfer these appropriations to the 
 25.49  commissioner of children, families, and 
 25.50  learning and to other commissioners as 
 25.51  appropriate.  The centers will serve as 
 25.52  central intake facilities for juveniles 
 25.53  entering the juvenile justice system or 
 25.54  involved in CHIPS proceedings; 
 25.55  facilitate screening for risk factors 
 25.56  for further involvement in the juvenile 
 25.57  justice system; refer juveniles to 
 25.58  appropriate service providers; and 
 25.59  provide decision-makers with timely 
 25.60  information. 
 25.61  [CARRYOVER; MINNESOTA CHILDREN WITH 
 25.62  SPECIAL HEALTH NEEDS.] General fund 
 25.63  appropriations for treatment services 
 25.64  in the services for children with 
 25.65  special health care needs program are 
 25.66  available for either year of the 
 26.1   biennium. 
 26.2   [HEALTH CARE ASSISTANCE FOR DISABLED 
 26.3   CHILDREN INELIGIBLE FOR SSI.] 
 26.4   Notwithstanding the requirements of 
 26.5   Minnesota Rules, part 4705.0100, 
 26.6   subpart 14, children who:  (a) are 
 26.7   eligible for medical assistance as of 
 26.8   June 30, 1997, and become ineligible 
 26.9   for medical assistance due to changes 
 26.10  in supplemental security income 
 26.11  disability standards for children 
 26.12  enacted in (PRWORA) Public Law Number 
 26.13  104-193; and (b) are not eligible for 
 26.14  MinnesotaCare, are eligible for health 
 26.15  care services through Minnesota 
 26.16  services for children with special 
 26.17  health care needs under Minnesota 
 26.18  Rules, parts 4705.0100 to 4705.1600 for 
 26.19  the fiscal year ending June 30, 1998.  
 26.20  The commissioner of health shall report 
 26.21  to the legislature by March 1, 1998, on 
 26.22  the number of children eligible under 
 26.23  this provision, their health care 
 26.24  needs, family income as a percentage of 
 26.25  the federal poverty level, the extent 
 26.26  to which families have employer-based 
 26.27  health coverage, and recommendations on 
 26.28  how to meet the future needs of 
 26.29  children eligible under this provision. 
 26.30  [MERC TRUST FUND.] Of the general fund 
 26.31  appropriation, $7,200,000 each year is 
 26.32  for the medical education and research 
 26.33  (MERC) trust fund established under 
 26.34  Minnesota Statutes, section 62J.69.  
 26.35  The commissioner may use up to $150,000 
 26.36  of this appropriation each year for the 
 26.37  administration of the MERC trust fund. 
 26.38  [INDIAN DIABETES PREVENTION 
 26.39  ACTIVITIES.] (a) Of this general fund 
 26.40  appropriation, $90,000 in fiscal year 
 26.41  1998 is for development of a 
 26.42  comprehensive school-based intervention 
 26.43  program designed to reduce the risk 
 26.44  factors associated with diabetes among 
 26.45  American Indian school children in 
 26.46  grades 1 through 4. 
 26.47  (b) Of this general fund appropriation, 
 26.48  $90,000 in fiscal year 1999 is for the 
 26.49  implementation of the program developed 
 26.50  under paragraph (a).  This 
 26.51  appropriation is available only if 
 26.52  matched by $1 of nonstate money for 
 26.53  each $1 of the appropriation. 
 26.54  [HOME VISITING PROGRAMS.] (a) Of this 
 26.55  appropriation, $140,000 in 1998 and 
 26.56  $1,295,000 in 1999 is for the home 
 26.57  visiting programs for infant care under 
 26.58  Minnesota Statutes, section 145A.16.  
 26.59  These amounts are available until June 
 26.60  30, 1999. 
 26.61  (b) Of this appropriation, $225,000 in 
 26.62  1998 and $180,000 in 1999 is to 
 26.63  continue funding the home visiting 
 26.64  programs that received one-year funding 
 26.65  under Laws 1995, chapter 480, article 
 27.1   1, section 9.  This amount is available 
 27.2   until expended. 
 27.3   [FETAL ALCOHOL SYNDROME.] $1,000,000 is 
 27.4   appropriated from the general fund to 
 27.5   the commissioner of health for each 
 27.6   year of the biennium ending June 30, 
 27.7   1999, to prevent and reduce harm from 
 27.8   Fetal Alcohol Syndrome (FAS) and Fetal 
 27.9   Alcohol Effect (FAE).  Of this amount: 
 27.10  (1) the commissioner shall transfer 
 27.11  $50,000 in fiscal year 1998 and $50,000 
 27.12  in fiscal year 1999 to the commissioner 
 27.13  of public safety to enforce Minnesota 
 27.14  Statutes, section 340A.410, subdivision 
 27.15  4b, and to develop a training packet 
 27.16  for alcohol beverage sales and service 
 27.17  providers; and (2) the commissioner 
 27.18  shall transfer $800,000 each year to 
 27.19  the commissioner of human services to 
 27.20  provide transitional chemical 
 27.21  dependency services to pregnant women. 
 27.22  Of the appropriation, $150,000 each 
 27.23  year is for training health care 
 27.24  providers to screen and refer pregnant 
 27.25  women for alcohol abuse, identifying 
 27.26  affected children and referring them to 
 27.27  needed services, and designing and 
 27.28  implementing a statewide plan to 
 27.29  promote responsible drinking and reduce 
 27.30  binge drinking, underage drinking, and 
 27.31  fetal alcohol exposure. 
 27.32  [COMPLAINT INVESTIGATIONS.] Of the 
 27.33  appropriation, $127,000 each year from 
 27.34  the state government special revenue 
 27.35  fund, and $88,000 each year from the 
 27.36  general fund, is for the commissioner 
 27.37  to conduct complaint investigations of 
 27.38  nursing facilities, hospitals and home 
 27.39  health care providers. 
 27.40  [HOME STAFFING STUDY.] The commissioner 
 27.41  of health, in consultation with the 
 27.42  commissioner of human services, shall 
 27.43  study nursing home staffing to 
 27.44  determine if Minnesota nursing homes 
 27.45  are adequately staffed to assure high 
 27.46  quality care of residents.  The study 
 27.47  shall examine: 
 27.48  (1) Whether nursing home staff levels 
 27.49  and qualifications have changed to 
 27.50  reflect the rising acuity levels of 
 27.51  nursing home patients. 
 27.52  (2) Whether more training is necessary 
 27.53  for nursing assistant and who care for 
 27.54  sicker patients. 
 27.55  (3) The percentage of nursing care in 
 27.56  nursing homes that is delivered by 
 27.57  nursing assistants as opposed to 
 27.58  licensed nurses, how this has changed 
 27.59  over the past five years, and what the 
 27.60  implications are for care. 
 27.61  (4) Whether the use of nursing pools or 
 27.62  agencies has increased over the past 
 27.63  five years, the implications of the use 
 28.1   of pools for continuity of care and for 
 28.2   costs to nursing homes, and whether a 
 28.3   restriction on the use of nursing pools 
 28.4   is advisable. 
 28.5   (5) Whether injury rates are related to 
 28.6   staffing, and whether increased 
 28.7   staffing would reduce injury rates, 
 28.8   lead to greater continuity of care, and 
 28.9   lower worker compensation costs to the 
 28.10  nursing home industry. 
 28.11  (6) Whether high turnover rates and 
 28.12  difficulty in attracting and retaining 
 28.13  nursing assistant staff in nursing 
 28.14  homes are related to low wages, and 
 28.15  whether the state should provide wage 
 28.16  enhancements for nursing assistants to 
 28.17  bring wages to a level adequate to 
 28.18  attract and retain good staff. 
 28.19  (7) Whether Minnesota should adopt new 
 28.20  staffing standards for its nursing 
 28.21  homes to reflect the increases in 
 28.22  patients' acuity levels and the 
 28.23  increased use of nursing assistants for 
 28.24  nursing care, and whether the state 
 28.25  should adopt a "ratio" standard that 
 28.26  requires the number of licensed nurses 
 28.27  and nursing assistants on staff to be 
 28.28  based on the number of patients and the 
 28.29  time of day. 
 28.30  The commissioner shall present 
 28.31  recommendations to the legislature by 
 28.32  December 15, 1997. 
 28.33  Subd. 3.  Health Protection          21,905,000     21,098,000
 28.34                Summary by Fund
 28.35  General               9,082,000     8,228,000
 28.36  Metro Landfill
 28.37  Contingency             193,000       193,000
 28.38  State Government 
 28.39  Special Revenue      12,480,000    12,677,000
 28.40  Minnesota Resources     150,000       -0-    
 28.41  [DEMO PROJECTS FOR HIV EDUCATION IN 
 28.42  SCHOOLS.] Of this appropriation, the 
 28.43  commissioner shall transfer $300,000 
 28.44  for the biennium ending June 30, 1999, 
 28.45  to the commissioner of children, 
 28.46  families, and learning to establish a 
 28.47  demonstration project to provide grants 
 28.48  to school districts under Minnesota 
 28.49  Statutes, section 121.203.  In 
 28.50  selecting participating districts the 
 28.51  commissioner shall give first priority 
 28.52  to school districts outside of the 
 28.53  seven-county metropolitan area, and 
 28.54  second priority to school districts in 
 28.55  the seven-county metropolitan area 
 28.56  other than the Minneapolis and St. Paul 
 28.57  school districts.  The commissioner 
 28.58  shall issue a request for proposals by 
 28.59  October 1, 1997, and shall select 
 28.60  districts by December 15, 1997.  The 
 29.1   commissioner shall evaluate the 
 29.2   projects, and by June 15, 1999, develop 
 29.3   model programs for districts to 
 29.4   implement Minnesota Statutes, section 
 29.5   121.203.  This appropriation shall not 
 29.6   become part of the base for 2000-2001 
 29.7   biennium. 
 29.8   [PREVENTION OF PERINATAL TRANSMISSION 
 29.9   OF HIV.] Of this appropriation, 
 29.10  $500,000 for the biennium is for 
 29.11  activities related to prevention of 
 29.12  perinatal transmission of HIV.  Of this 
 29.13  amount, $225,000 in fiscal year 1998 
 29.14  and $200,000 in fiscal year 1999 is to 
 29.15  conduct a statewide education campaign 
 29.16  for pregnant women and their health 
 29.17  care providers, and $75,000 is for 
 29.18  demonstration grants to providers to 
 29.19  develop procedures for incorporating 
 29.20  HIV awareness and education into 
 29.21  perinatal care. 
 29.22  [EVALUATION REQUIRED.] Of this 
 29.23  appropriation, $100,000 for the 
 29.24  biennium is for the commissioner to 
 29.25  evaluate the effects of Minnesota 
 29.26  Statutes, section 151.40, subdivision 
 29.27  2, and Minnesota Statutes, section 
 29.28  152.01, subdivision 18, paragraph (b).  
 29.29  The commissioner shall submit an 
 29.30  interim evaluation report to the 
 29.31  legislature by January 15, 2000, and a 
 29.32  final report by January 15, 2002. 
 29.33  [PROVIDER REIMBURSEMENT FOR HEALTH CARE 
 29.34  SERVICES TO CRIME VICTIMS.] Of this 
 29.35  appropriation $25,000 each year is for 
 29.36  the commissioner to reimburse health 
 29.37  care providers for counseling, testing, 
 29.38  and early intervention services 
 29.39  provided to crime victims who requested 
 29.40  the services. 
 29.41  Subd. 4.  Management and
 29.42  Support Services                       3,375,000      3,175,000
 29.43                Summary by Fund
 29.44  General               3,217,000     3,017,000
 29.45  Health Care
 29.46  Access                  -0-           -0-  
 29.47  State Government
 29.48  Special Revenue         158,000       158,000
 29.49  [HEALTH DEPARTMENT COMPUTER PROJECTS.] 
 29.50  Money appropriated for computer 
 29.51  projects approved by the information 
 29.52  policy office, funded by the 
 29.53  legislature, and approved by the 
 29.54  commissioner of finance does not cancel 
 29.55  but is available for development and 
 29.56  implementation. 
 29.57  [HOSPITAL CONVERSION.] Of the 
 29.58  appropriation from the general fund, 
 29.59  for the fiscal year ending June 30, 
 29.60  1998, the commissioner of health shall 
 29.61  provide $75,000 to a 28-bed hospital 
 30.1   located in Chisago county that is in 
 30.2   the process of closing and converting 
 30.3   to an outpatient and emergency services 
 30.4   facility, for the facility's EMS and 
 30.5   advanced life support services. 
 30.6   Sec. 4.  VETERANS NURSING   
 30.7   HOMES BOARD                           20,709,000     24,342,000 
 30.8   [SPECIAL REVENUE ACCOUNT.] The general 
 30.9   fund appropriations made to the 
 30.10  veterans homes board shall be 
 30.11  transferred to a veterans homes special 
 30.12  revenue account in the special revenue 
 30.13  fund in the same manner as other 
 30.14  receipts are deposited in accordance 
 30.15  with Minnesota Statutes, section 
 30.16  198.34, and are appropriated to the 
 30.17  veterans homes board of directors for 
 30.18  the operation of board facilities and 
 30.19  programs. 
 30.20  [SETTING THE COST OF CARE.] The 
 30.21  veterans homes board may set the cost 
 30.22  of care at the Fergus Falls facility 
 30.23  for fiscal year 1998 based on the cost 
 30.24  of average skilled nursing care 
 30.25  provided to residents of the 
 30.26  Minneapolis veterans home for fiscal 
 30.27  year 1998.  The board may set the cost 
 30.28  of care at the Fergus Falls facilities 
 30.29  for fiscal year 1999 based on the cost 
 30.30  of average skilled nursing care for 
 30.31  residents of the Minneapolis veterans 
 30.32  home for fiscal year 1999. 
 30.33  [LICENSED CAPACITY.] The department of 
 30.34  health shall not reduce the licensed 
 30.35  bed capacity for the Minneapolis 
 30.36  veterans home pending completion of the 
 30.37  project authorized by Laws 1990, 
 30.38  chapter 610, article 1, section 9, 
 30.39  subdivision 3. 
 30.40  [ALLOWANCE FOR FOOD.] The allowance for 
 30.41  food may be adjusted annually to 
 30.42  reflect changes in the producer price 
 30.43  index, as prepared by the United States 
 30.44  Bureau of Labor Statistics, with the 
 30.45  approval of the commissioner of 
 30.46  finance.  Adjustments for fiscal year 
 30.47  1998 and fiscal year 1999 must be based 
 30.48  on the June 1996 and June 1997 producer 
 30.49  price index respectively, but the 
 30.50  adjustment must be prorated if it would 
 30.51  require money in excess of the 
 30.52  appropriation. 
 30.53  Sec. 5.  HEALTH-RELATED BOARDS 
 30.54  Subdivision 1.  Total       
 30.55  Appropriation                          9,598,000      9,618,000 
 30.56  [STATE GOVERNMENT SPECIAL REVENUE 
 30.57  FUND.] The appropriations in this 
 30.58  section are from the state government 
 30.59  special revenue fund. 
 30.60  [NO SPENDING IN EXCESS OF REVENUES.] 
 30.61  The commissioner of finance shall not 
 30.62  permit the allotment, encumbrance, or 
 31.1   expenditure of money appropriated in 
 31.2   this section in excess of the 
 31.3   anticipated biennial revenues or 
 31.4   accumulated surplus revenues from fees 
 31.5   collected by the boards.  Neither this 
 31.6   provision nor Minnesota Statutes, 
 31.7   section 214.06, applies to transfers 
 31.8   from the general contingent account. 
 31.9   Subd. 2.  Board of Chiropractic 
 31.10  Examiners                                332,000        340,000
 31.11  Subd. 3.  Board of Dentistry             742,000        760,000
 31.12  Subd. 4.  Board of Dietetic
 31.13  and Nutrition Practice                    90,000         90,000
 31.14  Subd. 5.  Board of Marriage and 
 31.15  Family Therapy                           103,000        104,000
 31.16  Subd. 6.  Board of Medical  
 31.17  Practice                               3,672,000      3,711,000
 31.18  Of these appropriations, $291,000 the 
 31.19  first year and $296,000 the second year 
 31.20  are for the Health Professional 
 31.21  Services Activity. 
 31.22  Subd. 7.  Board of Nursing             2,067,000      2,106,000
 31.23  [DISCIPLINE AND LICENSING SYSTEMS 
 31.24  PROJECT.] Of this appropriation, 
 31.25  $235,000 the first year and $235,000 
 31.26  the second year is to complete the 
 31.27  implementation of the discipline and 
 31.28  licensing systems project. 
 31.29  Subd. 8.  Board of Nursing 
 31.30  Home Administrators                      177,000        181,000
 31.31  Subd. 9.  Board of Optometry              82,000         85,000
 31.32  Subd. 10.  Board of Pharmacy           1,020,000      1,040,000
 31.33  Of these appropriations, $216,000 the 
 31.34  first year and $222,000 the second year 
 31.35  are for the health boards 
 31.36  administrative services unit.  The 
 31.37  administrative services unit may 
 31.38  receive and expend reimbursements for 
 31.39  services performed for other agencies. 
 31.40  Subd. 11.  Board of Podiatry              33,000         33,000
 31.41  Subd. 12.  Board of Psychology           424,000        436,000
 31.42  Subd. 13.  Board of Social Work          715,000        588,000
 31.43  Subd. 14.  Board of Veterinary 
 31.44  Medicine                                 141,000        144,000
 31.45  Sec. 6.  EMERGENCY MEDICAL
 31.46  SERVICES BOARD                         2,791,000      2,811,000 
 31.47                Summary by Fund
 31.48  General               1,139,000     1,133,000
 31.49  Trunk Highway         1,652,000     1,678,000
 31.50  [CALS PROGRAM.] $206,000 is 
 32.1   appropriated from the general fund to 
 32.2   the emergency medical services 
 32.3   regulatory board to be available until 
 32.4   June 30, 1999.  $200,000 of the 
 32.5   appropriation is to implement the 
 32.6   comprehensive advanced life support 
 32.7   (CALS) program or similar program.  
 32.8   $6,000 of the appropriation is for 
 32.9   administrative costs of implementing 
 32.10  the CALS program. 
 32.11  [EMS BOARD DATA COLLECTION.] Of this 
 32.12  appropriation, $52,000 for the biennium 
 32.13  ending June 30, 1999, is from the 
 32.14  general fund to the emergency medical 
 32.15  services regulatory to be used as 
 32.16  start-up costs for the financial data 
 32.17  collection system. 
 32.18  Sec. 7.  COUNCIL ON DISABILITY           616,000        631,000
 32.19  Sec. 8.  OMBUDSMAN FOR MENTAL 
 32.20  HEALTH AND MENTAL RETARDATION          1,399,000      1,323,000
 32.21  [CARRYOVER.] $25,000 of the 
 32.22  appropriation from Laws 1995, chapter 
 32.23  207, article 1, section 7, does not 
 32.24  cancel but is available until June 30, 
 32.25  1999. 
 32.26  Sec. 9.  OMBUDSMAN
 32.27  FOR FAMILIES                             157,000        161,000
 32.28  Sec. 10.  TRANSFERS 
 32.29  Subdivision 1.  Grant Programs
 32.30  The commissioner of human services, 
 32.31  with the approval of the commissioner 
 32.32  of finance, and after notification of 
 32.33  the chair of the senate health care and 
 32.34  family services finance division and 
 32.35  the chair of the house health and human 
 32.36  services finance division, may transfer 
 32.37  unencumbered appropriation balances for 
 32.38  the biennium ending June 30, 1999, 
 32.39  within fiscal years among the aid to 
 32.40  families with dependent children, 
 32.41  Minnesota family investment 
 32.42  program-statewide, Minnesota family 
 32.43  investment plan, general assistance, 
 32.44  general assistance medical care, 
 32.45  medical assistance, Minnesota 
 32.46  supplemental aid, and group residential 
 32.47  housing programs, and the entitlement 
 32.48  portion of the chemical dependency 
 32.49  consolidated treatment fund, and 
 32.50  between fiscal years of the biennium. 
 32.51  Subd. 2.  Approval Required
 32.52  Positions, salary money, and nonsalary 
 32.53  administrative money may be transferred 
 32.54  within the departments of human 
 32.55  services and health and within the 
 32.56  programs operated by the veterans 
 32.57  nursing homes board as the 
 32.58  commissioners and the board consider 
 32.59  necessary, with the advance approval of 
 32.60  the commissioner of finance.  The 
 32.61  commissioner of finance shall inform 
 33.1   the chairs of the house health and 
 33.2   human services finance division and the 
 33.3   senate health and family security 
 33.4   budget division quarterly about 
 33.5   transfers made under this provision. 
 33.6   Sec. 11.  PROVISIONS
 33.7   (a) Money appropriated to the 
 33.8   commissioner of human services for the 
 33.9   purchase of provisions within the item 
 33.10  "current expense" must be used solely 
 33.11  for that purpose.  Money provided and 
 33.12  not used for the purchase of provisions 
 33.13  must be canceled into the fund from 
 33.14  which appropriated, except that money 
 33.15  provided and not used for the purchase 
 33.16  of provisions because of population 
 33.17  decreases may be transferred and used 
 33.18  for the purchase of drugs and medical 
 33.19  and hospital supplies and equipment 
 33.20  with written approval of the governor 
 33.21  after consultation with the legislative 
 33.22  advisory commission. 
 33.23  (b) For fiscal year 1998, the allowance 
 33.24  for food may be adjusted to the 
 33.25  equivalent of the 75th percentile of 
 33.26  the comparable raw food costs for 
 33.27  community nursing homes as reported to 
 33.28  the commissioner of human services.  
 33.29  For fiscal year 1999 an adjustment may 
 33.30  be made to reflect the annual change in 
 33.31  the United States Bureau of Labor 
 33.32  Statistics producer price index as of 
 33.33  June 1998 with the approval of the 
 33.34  commissioner of finance.  The 
 33.35  adjustments for either year must be 
 33.36  prorated if they would require money in 
 33.37  excess of this appropriation. 
 33.38  Sec. 12.  CARRYOVER LIMITATION
 33.39  None of the appropriations in this act 
 33.40  which are allowed to be carried forward 
 33.41  from fiscal year 1998 to fiscal year 
 33.42  1999 shall become part of the base 
 33.43  level funding for the 2000-2001 
 33.44  biennial budget, unless specifically 
 33.45  directed by the legislature. 
 33.46  Sec. 13.  SUNSET OF UNCODIFIED LANGUAGE
 33.47  All uncodified language contained in 
 33.48  this article expires on June 30, 1999, 
 33.49  unless a different expiration is 
 33.50  explicit. 
 33.51  Sec. 14.  COMMISSIONER OF 
 33.52  ADMINISTRATION                         1,270,000          -0- 
 33.53  [VETERANS HOMES IMPROVEMENTS.] Of this 
 33.54  appropriation, $1,270,000 for the 
 33.55  biennium is for the commissioner to 
 33.56  accomplish the repair and replacement 
 33.57  of sanitary sewers, fire protection 
 33.58  water mains, roof drains, and deep 
 33.59  sandstone tunnels at the Minneapolis 
 33.60  veterans home, Minneapolis campus. 
 33.61                             ARTICLE 2 
 34.1                          HEALTH DEPARTMENT 
 34.2      Section 1.  Minnesota Statutes 1996, section 62J.69, 
 34.3   subdivision 2, is amended to read: 
 34.4      Subd. 2.  [ALLOCATION AND FUNDING FOR MEDICAL EDUCATION AND 
 34.5   RESEARCH.] (a) The commissioner may establish a trust fund for 
 34.6   the purposes of funding medical education and research 
 34.7   activities in the state of Minnesota. 
 34.8      (b) By January 1, 1997, the commissioner may appoint an 
 34.9   advisory committee to provide advice and oversight on the 
 34.10  distribution of funds from the medical education and research 
 34.11  trust fund.  If a committee is appointed, the commissioner 
 34.12  shall:  (1) consider the interest of all stakeholders when 
 34.13  selecting committee members; (2) select members that represent 
 34.14  both urban and rural interest; and (3) select members that 
 34.15  include ambulatory care as well as inpatient perspectives.  The 
 34.16  commissioner shall appoint to the advisory committee 
 34.17  representatives of the following groups:  medical researchers, 
 34.18  public and private academic medical centers, managed care 
 34.19  organizations, Blue Cross and Blue Shield of Minnesota, 
 34.20  commercial carriers, Minnesota Medical Association, Minnesota 
 34.21  Nurses Association, medical product manufacturers, employers, 
 34.22  and other relevant stakeholders, including consumers.  The 
 34.23  advisory committee is governed by section 15.059, for membership 
 34.24  terms and removal of members and will sunset on June 30, 1999. 
 34.25     (c) Eligible applicants for funds are accredited medical 
 34.26  education teaching institutions, consortia, and programs.  
 34.27  Applications must be received by September 30 of each year for 
 34.28  distribution by January 1 of the following year.  An application 
 34.29  for funds must include the following: 
 34.30     (1) the official name and address of the institution, 
 34.31  facility, or program that is applying for funding; 
 34.32     (2) the name, title, and business address of those persons 
 34.33  responsible for administering the funds; 
 34.34     (3) the total number, type, and specialty orientation of 
 34.35  eligible trainees in each accredited medical education program 
 34.36  applying for funds; 
 35.1      (4) audited clinical training costs per trainee for each 
 35.2   medical education program; 
 35.3      (5) a description of current sources of funding for medical 
 35.4   education costs including a description and dollar amount of all 
 35.5   state and federal financial support; 
 35.6      (6) other revenue received for the purposes of clinical 
 35.7   training; 
 35.8      (7) a statement identifying unfunded costs; and 
 35.9      (8) other supporting information the commissioner, with 
 35.10  advice from the advisory committee, determines is necessary for 
 35.11  the equitable distribution of funds. 
 35.12     (d) The commissioner shall distribute medical education 
 35.13  funds to all qualifying applicants based on the following basic 
 35.14  criteria:  (1) total medical education funds available; (2) 
 35.15  total trainees in each eligible education program; and (3) the 
 35.16  statewide average cost per trainee, by type of trainee, in each 
 35.17  medical education program.  Funds distributed shall not be used 
 35.18  to displace current funding appropriations from federal or state 
 35.19  sources. 
 35.20     (e) Medical education programs receiving funds from the 
 35.21  trust fund must submit annual cost and program reports based on 
 35.22  criteria established by the commissioner.  The reports must 
 35.23  include:  
 35.24     (1) the total number of eligible trainees in the program; 
 35.25     (2) the type of programs and residencies funded; 
 35.26     (3) the average cost per trainee and a detailed breakdown 
 35.27  of the components of those costs; 
 35.28     (4) other state or federal appropriations received for the 
 35.29  purposes of clinical training; 
 35.30     (5) other revenue received for the purposes of clinical 
 35.31  training; and 
 35.32     (6) other information the commissioner, with advice from 
 35.33  the advisory committee, deems appropriate to evaluate the 
 35.34  effectiveness of the use of funds for clinical training.  
 35.35     The commissioner, with advice from the advisory committee, 
 35.36  will provide an annual summary report to the legislature on 
 36.1   program implementation due February 15 of each year. 
 36.2      (f) The commissioner is authorized to distribute funds made 
 36.3   available through: 
 36.4      (1) voluntary contributions by employers or other entities; 
 36.5      (2) allocations for the department of human services to 
 36.6   support medical education and research; and 
 36.7      (3) other sources as identified and deemed appropriate by 
 36.8   the legislature for inclusion in the trust fund. 
 36.9      (g) The advisory committee shall continue to study and make 
 36.10  recommendations on:  
 36.11     (1) the funding of medical research consistent with work 
 36.12  currently mandated by the legislature and under way at the 
 36.13  department of health; and 
 36.14     (2) the costs and benefits associated with medical 
 36.15  education and research. 
 36.16     (h) The commissioner of health, in consultation with the 
 36.17  medical education and research costs advisory committee, shall 
 36.18  continue to consider additional broad-based funding sources, and 
 36.19  shall recommend potential sources of funding to the legislative 
 36.20  commission on health care access by January 15, 1998. 
 36.21     (i) The commissioner of health, in consultation with the 
 36.22  commissioner of human services, shall assess the possibility of 
 36.23  further base rate reductions to the prepaid medical assistance 
 36.24  and prepaid general assistance medical care programs and shall 
 36.25  study the feasibility of inclusion of MinnesotaCare funding in 
 36.26  the trust fund.  The study shall examine whether the 1999 
 36.27  allocation established in section 256B.69, subdivision 5c, 
 36.28  paragraph (b), sufficiently reflects the direct and indirect 
 36.29  components of medical education.  The study shall also examine 
 36.30  the appropriateness of transferring an education component from 
 36.31  the MinnesotaCare rates, and the appropriate amount and timing 
 36.32  of any such transfer.  Recommendations on the possible inclusion 
 36.33  of MinnesotaCare funding and any further base rate reductions 
 36.34  from the prepaid medical assistance and prepaid general 
 36.35  assistance medical care programs shall be reported to the 
 36.36  legislative commission on health care access by January 15, 1998.
 37.1      Sec. 2.  [62J.70] [AMBULANCE SERVICES FINANCIAL DATA.] 
 37.2      Subdivision 1.  [ESTABLISHMENT.] The emergency medical 
 37.3   services regulatory board established under chapter 144E shall 
 37.4   establish a financial data collection system for all ambulance 
 37.5   services licensed in this state.  To establish the financial 
 37.6   database, the emergency medical services regulatory board may 
 37.7   contract with an entity that has experience in ambulance service 
 37.8   financial data collection. 
 37.9      Subd. 2.  [DATA CLASSIFICATION.] All financial data 
 37.10  collected by the emergency medical services regulatory board 
 37.11  shall be classified as nonpublic data under section 13.02, 
 37.12  subdivision 9. 
 37.13     Sec. 3.  Minnesota Statutes 1996, section 103I.101, 
 37.14  subdivision 6, is amended to read: 
 37.15     Subd. 6.  [FEES FOR VARIANCES.] The commissioner shall 
 37.16  charge a nonrefundable application fee of $100 $120 to cover the 
 37.17  administrative cost of processing a request for a variance or 
 37.18  modification of rules adopted by the commissioner under this 
 37.19  chapter. 
 37.20     Sec. 4.  Minnesota Statutes 1996, section 103I.208, is 
 37.21  amended to read: 
 37.22     103I.208 [WELL NOTIFICATION FILING FEES AND PERMIT FEES.] 
 37.23     Subdivision 1.  [WELL NOTIFICATION FEE.] The well 
 37.24  notification fee to be paid by a property owner is:  
 37.25     (1) for a new well, $100 $120, which includes the state 
 37.26  core function fee; and 
 37.27     (2) for a well sealing, $20, which includes the state core 
 37.28  function fee; and 
 37.29     (3) for construction of a dewatering well, $100 $120, which 
 37.30  includes the state core function fee, for each well except a 
 37.31  dewatering project comprising five or more wells shall be 
 37.32  assessed a single fee of $500 $600 for the wells recorded on the 
 37.33  notification. 
 37.34     Subd. 1a.  [STATE CORE FUNCTION FEE.] The state core 
 37.35  function fee to be collected by the state and delegated boards 
 37.36  of health and used to support state core functions is: 
 38.1      (1) for a new well, $20; and 
 38.2      (2) for a well sealing, $5.  
 38.3      Subd. 2.  [PERMIT FEE.] The permit fee to be paid by a 
 38.4   property owner is:  
 38.5      (1) for a well that is not in use under a maintenance 
 38.6   permit, $100 annually; 
 38.7      (2) for construction of a monitoring well, $100 $120, which 
 38.8   includes the state core function fee; 
 38.9      (3) for a monitoring well that is unsealed under a 
 38.10  maintenance permit, $100 annually; 
 38.11     (4) for monitoring wells used as a leak detection device at 
 38.12  a single motor fuel retail outlet or petroleum bulk storage site 
 38.13  excluding tank farms, the construction permit fee is $100 $120, 
 38.14  which includes the state core function fee, per site regardless 
 38.15  of the number of wells constructed on the site, and the annual 
 38.16  fee for a maintenance permit for unsealed monitoring wells is 
 38.17  $100 per site regardless of the number of monitoring wells 
 38.18  located on site; 
 38.19     (5) for a groundwater thermal exchange device, in addition 
 38.20  to the notification fee for wells, $100 $120, which includes the 
 38.21  state core function fee; 
 38.22     (6) for a vertical heat exchanger, $100 $120; and 
 38.23     (7) for a dewatering well that is unsealed under a 
 38.24  maintenance permit, $100 annually for each well, except a 
 38.25  dewatering project comprising more than five wells shall be 
 38.26  issued a single permit for $500 annually for wells recorded on 
 38.27  the permit; and 
 38.28     (8) for excavating holes for the purpose of installing 
 38.29  elevator shafts, $120 for each hole. 
 38.30     Sec. 5.  Minnesota Statutes 1996, section 103I.401, 
 38.31  subdivision 1, is amended to read: 
 38.32     Subdivision 1.  [PERMIT REQUIRED.] (a) A person may not 
 38.33  construct an elevator shaft until a permit for the hole or 
 38.34  excavation is issued by the commissioner.  
 38.35     (b) The fee for excavating holes for the purpose of 
 38.36  installing elevator shafts is $100 for each hole. 
 39.1      (c) The elevator shaft permit preempts local permits except 
 39.2   local building permits, and counties and home rule charter or 
 39.3   statutory cities may not require a permit for elevator shaft 
 39.4   holes or excavations. 
 39.5      Sec. 6.  Minnesota Statutes 1996, section 144.121, 
 39.6   subdivision 1, is amended to read: 
 39.7      Subdivision 1.  [REGISTRATION; FEES.] The fee for the 
 39.8   registration for X-ray machines and radium other sources of 
 39.9   ionizing radiation required to be registered under rules adopted 
 39.10  by the state commissioner of health pursuant to section 144.12, 
 39.11  shall be in an amount prescribed by the commissioner as 
 39.12  described in subdivision 1a pursuant to section 144.122.  The 
 39.13  first fee for registration shall be due on January 1, 1975.  The 
 39.14  registration shall expire and be renewed as prescribed by the 
 39.15  commissioner pursuant to section 144.122. 
 39.16     Sec. 7.  Minnesota Statutes 1996, section 144.121, is 
 39.17  amended by adding a subdivision to read: 
 39.18     Subd. 1a.  [FEES FOR X-RAY MACHINES AND OTHER SOURCES OF 
 39.19  IONIZING RADIATION.] After July 1, 1997, a facility with x-ray 
 39.20  machines or other sources of ionizing radiation must biennially 
 39.21  pay an initial or biennial renewal registration fee consisting 
 39.22  of a base facility fee of $132 and an additional fee for each 
 39.23  x-ray machine or other source of ionizing radiation as follows:  
 39.24       (1) medical or veterinary equipment                 $106
 39.25       (2) dental x-ray equipment                          $ 66
 39.26       (3) accelerator                                     $132
 39.27       (4) radiation therapy equipment                     $132
 39.28       (5) x-ray equipment not used on humans or animals   $106
 39.29       (6) devices with sources of ionizing radiation
 39.30           not used on humans or animals                   $106
 39.31       (7) sources of radium                               $198
 39.32     Sec. 8.  Minnesota Statutes 1996, section 144.121, is 
 39.33  amended by adding a subdivision to read: 
 39.34     Subd. 1b.  [PENALTY FEE FOR LATE REGISTRATION.] 
 39.35  Applications for initial or renewal registrations submitted to 
 39.36  the commissioner after the time specified by the commissioner 
 40.1   shall be accompanied by a penalty fee of $20 in addition to the 
 40.2   fees prescribed in subdivision 1a. 
 40.3      Sec. 9.  Minnesota Statutes 1996, section 144.121, is 
 40.4   amended by adding a subdivision to read: 
 40.5      Subd. 1c.  [FEE FOR X-RAY MACHINES AND OTHER SOURCES OF 
 40.6   IONIZING RADIATION REGISTERED DURING LAST 12 MONTHS OF A 
 40.7   BIENNIAL REGISTRATION PERIOD.] The initial registration fee of 
 40.8   x-ray machines or other sources of radiation required to be 
 40.9   registered during the last 12 months of a biennial registration 
 40.10  period will be 50 percent of the applicable registration fee 
 40.11  prescribed in subdivision 1a. 
 40.12     Sec. 10.  [144.124] [TESTS OF NEWBORN INFANTS FOR HEARING 
 40.13  LOSS.] 
 40.14     Subdivision 1.  [LEGISLATIVE DECLARATION AND POLICY.] (a) 
 40.15  The legislature hereby finds, determines, and declares: 
 40.16     (1) that hearing loss occurs in newborn infants more 
 40.17  frequently than any other health condition for which newborn 
 40.18  infant screening is currently required; 
 40.19     (2) that 80 percent of the language ability of a child is 
 40.20  established by the time the child is 18 months of age, and that 
 40.21  hearing is vitally important to the health development of 
 40.22  language skills; 
 40.23     (3) that early detection of either mild or severe hearing 
 40.24  loss in a child and early intervention has been determined to be 
 40.25  highly effective in facilitating a child's healthy development 
 40.26  in a manner consistent with the child's age and cognitive 
 40.27  ability; 
 40.28     (4) that children with hearing loss who do not receive 
 40.29  early intervention require special educational services, and 
 40.30  that the costs of such publicly funded services exceed the costs 
 40.31  of screening infants for hearing loss; and 
 40.32     (5) that appropriate testing and identification of newborn 
 40.33  infants with hearing loss will facilitate early intervention, 
 40.34  and may therefore promote the healthy development of children 
 40.35  and reduce public expenditures. 
 40.36     (b) For these reasons, the legislature declares that it is 
 41.1   the public policy of this state that every newborn infant should 
 41.2   be screened for hearing loss unless the parents object on the 
 41.3   grounds that a test would conflict with their religious beliefs. 
 41.4      Subd. 2.  [PROGRAM IMPLEMENTATION.] (a) To accomplish the 
 41.5   goal of screening all newborn infants for hearing loss, the 
 41.6   commissioner of health shall work with hospitals, the medical 
 41.7   community, audiologists, insurance companies, parents, and deaf 
 41.8   and hard-of-hearing citizens to establish and implement a 
 41.9   voluntary plan for hospitals and other health care facilities to 
 41.10  screen all infants for hearing loss. 
 41.11     (b) The commissioner of health shall appoint a department 
 41.12  work group to make recommendations to the commissioner on 
 41.13  formulating a plan to achieve, on a voluntary basis, universal 
 41.14  screening of infants for hearing loss.  The work group shall 
 41.15  include the following representatives: 
 41.16     (1) a representative of the health insurance industry 
 41.17  designated by the health insurance industry; 
 41.18     (2) a representative of the Minnesota hospital and 
 41.19  healthcare partnership; 
 41.20     (3) a total of two representatives from the following 
 41.21  physician groups designated by the Minnesota medical 
 41.22  association:  pediatrics, family practice, and ENT; 
 41.23     (4) two audiologists designated by the Minnesota 
 41.24  speech-language-hearing association and the Minnesota academy of 
 41.25  audiology; 
 41.26     (5) a representative of hospital neonatal nurseries; 
 41.27     (6) a representative of Part H (IDEA) early childhood 
 41.28  special education; 
 41.29     (7) the commissioner of health or a designee; 
 41.30     (8) a representative of the department of human services; 
 41.31     (9) a public health nurse; 
 41.32     (10) a parent of a deaf or hard-of-hearing child; 
 41.33     (11) a deaf or hard-of-hearing person; and 
 41.34     (12) a representative of the Minnesota commission serving 
 41.35  deaf and hard-of-hearing people. 
 41.36  Members of the work group shall not collect a per diem or 
 42.1   compensation as provided in section 15.0575.  
 42.2      (c) The plan shall include the following: 
 42.3      (1) measurable goals and timetables for achieving universal 
 42.4   screening of infants for hearing loss throughout the state; and 
 42.5      (2) the design and implementation of training necessary to 
 42.6   assist hospitals and other health care facilities to screen 
 42.7   infants for hearing loss according to recognized standards of 
 42.8   care. 
 42.9      (d) The work group shall report to the legislature by 
 42.10  January 1, 1998, on progress made toward achieving universal 
 42.11  screening of infants in Minnesota to assist the legislature in 
 42.12  determining whether this goal can be accomplished on a voluntary 
 42.13  basis. 
 42.14     Sec. 11.  Minnesota Statutes 1996, section 144.125, is 
 42.15  amended to read: 
 42.16     144.125 [TESTS OF INFANTS FOR INBORN METABOLIC ERRORS.] 
 42.17     It is the duty of (1) the administrative officer or other 
 42.18  person in charge of each institution caring for infants 28 days 
 42.19  or less of age and (2) the person required in pursuance of the 
 42.20  provisions of section 144.215, to register the birth of a child, 
 42.21  to cause to have administered to every infant or child in its 
 42.22  care tests for hemoglobinopathy, phenylketonuria, and other 
 42.23  inborn errors of metabolism in accordance with rules prescribed 
 42.24  by the state commissioner of health.  In determining which tests 
 42.25  must be administered, the commissioner shall take into 
 42.26  consideration the adequacy of laboratory methods to detect the 
 42.27  inborn metabolic error, the ability to treat or prevent medical 
 42.28  conditions caused by the inborn metabolic error, and the 
 42.29  severity of the medical conditions caused by the inborn 
 42.30  metabolic error.  Testing and the recording and reporting of the 
 42.31  results of the tests shall be performed at the times and in the 
 42.32  manner prescribed by the commissioner of health.  The 
 42.33  commissioner shall charge laboratory service fees for conducting 
 42.34  the tests of infants for inborn metabolic errors so that the 
 42.35  total of fees collected will approximate the costs of conducting 
 42.36  the tests and implementing and maintaining a system to follow-up 
 43.1   infants with inborn metabolic errors.  Costs associated with 
 43.2   capital expenditures and the development of new procedures may 
 43.3   be prorated over a three-year period when calculating the amount 
 43.4   of the fees. 
 43.5      Sec. 12.  Minnesota Statutes 1996, section 144.226, 
 43.6   subdivision 1, is amended to read: 
 43.7      Subdivision 1.  [WHICH SERVICES ARE FOR FEE.] The fees 
 43.8   for any of the following services shall be in the following or 
 43.9   an amount prescribed by rule of the commissioner: 
 43.10     (a) The fee for the issuance of a certified copy or 
 43.11  certification of a vital record, or a certification that the 
 43.12  record cannot be found; is $8.  No fee shall be charged for a 
 43.13  certified birth or death record that is reissued within one year 
 43.14  of the original issue, if the previously issued record is 
 43.15  surrendered. 
 43.16     (b) The fee for the replacement of a birth certificate; 
 43.17  record for all events except adoption is $20. 
 43.18     (c) The fee for the filing of a delayed registration of 
 43.19  birth or death; is $20. 
 43.20     (d) The alteration, correction, or completion fee for the 
 43.21  amendment of any vital record, provided that when requested more 
 43.22  than one year after the filing of the record is $20.  No fee 
 43.23  shall be charged for an alteration, correction, or 
 43.24  completion amendment requested within one year after the filing 
 43.25  of the certificate; and. 
 43.26     (e) The fee for the verification of information from or 
 43.27  noncertified copies of vital records is $8 when the applicant 
 43.28  furnishes the specific information to locate the record.  When 
 43.29  the applicant does not furnish specific information, the fee is 
 43.30  $20 per hour for staff time expended.  Specific information 
 43.31  shall include the correct date of the event and the correct name 
 43.32  of the registrant.  Fees charged shall approximate the costs 
 43.33  incurred in searching and copying the records.  The fee shall be 
 43.34  payable at time of application. 
 43.35     (f) The fee for issuance of a certified or noncertified 
 43.36  copy of any document on file pertaining to a vital record or a 
 44.1   certification that the record cannot be found is $8. 
 44.2      Sec. 13.  Minnesota Statutes 1996, section 144.226, is 
 44.3   amended by adding a subdivision to read: 
 44.4      Subd. 4.  [VITAL RECORDS SURCHARGE.] In addition to any fee 
 44.5   prescribed under subdivision 1, there is a nonrefundable 
 44.6   surcharge of $3 for each certified and noncertified birth or 
 44.7   death record.  The local or state registrar shall forward this 
 44.8   amount to the state treasurer to be deposited into the state 
 44.9   government special revenue fund.  This surcharge shall not be 
 44.10  charged under those circumstances in which no fee for a birth or 
 44.11  death record is permitted under subdivision 1, paragraph (a).  
 44.12  This surcharge requirement expires June 30, 2002. 
 44.13     Sec. 14.  Minnesota Statutes 1996, section 144.394, is 
 44.14  amended to read: 
 44.15     144.394 [SMOKING PREVENTION HEALTH PROMOTION AND 
 44.16  EDUCATION.] 
 44.17     The commissioner may sell at market value, all nonsmoking 
 44.18  or tobacco use prevention advertising health promotion and 
 44.19  health education materials.  Proceeds from the sale of the 
 44.20  advertising materials are appropriated to the department of 
 44.21  health for its nonsmoking the program that developed the 
 44.22  material. 
 44.23     Sec. 15.  Minnesota Statutes 1996, section 144.767, 
 44.24  subdivision 1, is amended to read: 
 44.25     Subdivision 1.  [REPORT TO EMPLOYER.] Results of tests 
 44.26  conducted under this section shall be reported by the facility 
 44.27  to a designated agent of the emergency medical services agency 
 44.28  that employs or uses the emergency medical services personnel 
 44.29  and to the emergency medical services personnel who report the 
 44.30  significant exposure.  The test results shall be reported 
 44.31  without personally identifying information and may not be used 
 44.32  as evidence in any criminal prosecution. 
 44.33     Sec. 16.  [145.9241] [PREVENTION OF PERINATAL TRANSMISSION 
 44.34  OF HIV.] 
 44.35     The commissioner shall conduct a statewide education 
 44.36  campaign to educate pregnant women and health care providers 
 45.1   about the risk of perinatal transmission of HIV and the value of 
 45.2   HIV screening early in pregnancy.  The commissioner shall also 
 45.3   provide demonstration grants to health care providers to allow 
 45.4   these providers to develop procedures for incorporating HIV 
 45.5   awareness and education into prenatal care. 
 45.6      Sec. 17.  Minnesota Statutes 1996, section 145.925, 
 45.7   subdivision 9, is amended to read: 
 45.8      Subd. 9.  [RULES; REGIONAL FUNDING.] Notwithstanding any 
 45.9   rules to the contrary, including rules proposed in the State 
 45.10  Register on April 1, 1991, the commissioner, in allocating grant 
 45.11  funds for family planning special projects, shall not limit the 
 45.12  total amount of funds that can be allocated to an organization 
 45.13  that has submitted applications from more than one region, 
 45.14  except that no more than $75,000 may be allocated to any grantee 
 45.15  within a single region, except that if a county designates one 
 45.16  or more organizations to be its agent for providing family 
 45.17  planning services, the county may fund the organizations in an 
 45.18  amount greater than $75,000.  For two or more organizations who 
 45.19  have submitted a joint application, that limit is $75,000 for 
 45.20  each organization, except that if a county designates one or 
 45.21  more organizations to be its agent for providing family planning 
 45.22  services, the county may fund the organizations in an amount 
 45.23  greater than $75,000.  This subdivision does not affect any 
 45.24  procedure established in rule for allocating special project 
 45.25  money to the different regions.  The commissioner shall revise 
 45.26  the rules for family planning special project grants so that 
 45.27  they conform to the requirements of this subdivision.  In 
 45.28  adopting these revisions, the commissioner is not subject to the 
 45.29  rulemaking provisions of chapter 14, but is bound by section 
 45.30  14.38, subdivision 7. 
 45.31     Sec. 18.  [145A.16] [UNIVERSALLY OFFERED HOME VISITING 
 45.32  PROGRAMS FOR INFANT CARE.] 
 45.33     Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
 45.34  establish a grant program for universally offered home visiting 
 45.35  programs funded at a level that could serve, if accepted, all 
 45.36  live births in designated geographic areas.  The commissioner 
 46.1   shall designate the geographic area to be served by each 
 46.2   program.  At least one program must provide home visiting 
 46.3   services to families within the seven-county metropolitan area, 
 46.4   and at least one program must provide home visiting services to 
 46.5   families outside the metropolitan area.  The purpose of the 
 46.6   program is to strengthen families and to promote positive 
 46.7   parenting and healthy child development.  
 46.8      Subd. 2.  [STEERING COMMITTEE.] The commissioner shall 
 46.9   establish an ad hoc steering committee to develop and implement 
 46.10  a comprehensive plan for the universally offered home visiting 
 46.11  programs.  The members of the ad hoc steering committee shall 
 46.12  include, at a minimum, representatives of local public health 
 46.13  departments, public health nurses, other health care providers, 
 46.14  paraprofessionals, community-based family workers, 
 46.15  representatives of health insurance plans, and other individuals 
 46.16  with expertise in the field of home visiting, early childhood 
 46.17  health and development, and child abuse prevention.  
 46.18     Subd. 3.  [PROGRAM REQUIREMENTS.] The commissioner shall 
 46.19  award grants using a request for proposal system.  Existing home 
 46.20  visiting programs may apply for the grants.  Health information 
 46.21  and assessment, counseling, social support, educational 
 46.22  services, and referrals to community resources must be offered 
 46.23  to all families, regardless of need or risk, beginning 
 46.24  prenatally or as soon after birth as possible, and continuing as 
 46.25  needed.  Each program applying for a grant must have access to 
 46.26  adequate community resources to complement the home visiting 
 46.27  services and must be designed to: 
 46.28     (1) identify all newborn infants within the geographic area 
 46.29  served by the program.  Identification may be made prenatally or 
 46.30  at the time of birth; 
 46.31     (2) offer a home visit by a trained home visitor.  If home 
 46.32  visiting is accepted, the first visit must occur prenatally or 
 46.33  as soon after birth as possible and must include a public health 
 46.34  nursing assessment by a public health nurse; 
 46.35     (3) offer, at a minimum, information on infant care, child 
 46.36  growth and development, positive parenting, the prevention of 
 47.1   disease and exposure to environmental hazards, and support 
 47.2   services available in the community; 
 47.3      (4) provide information about and referral to health care 
 47.4   services, if needed, including family planning, pediatric 
 47.5   preventive services, immunizations, and developmental 
 47.6   assessments, and provide information on the availability of 
 47.7   public assistance programs as appropriate; 
 47.8      (5) recruit home visit workers who will represent, to the 
 47.9   extent possible, all the races, cultures, and languages spoken 
 47.10  by eligible families in the designated geographic areas; and 
 47.11     (6) train and supervise home visitors according to the 
 47.12  requirements established under subdivision 5.  
 47.13     Subd. 4.  [COORDINATION.] To minimize duplication, a 
 47.14  program receiving a grant must establish a coalition that 
 47.15  includes parents, health care providers that provide services to 
 47.16  families with young children in the service area, and 
 47.17  representatives of local schools, governmental and nonprofit 
 47.18  agencies, community-based organizations, health insurance plans, 
 47.19  and local hospitals.  The coalition must designate the roles of 
 47.20  all provider agencies, family identification methods, referral 
 47.21  mechanisms, and payment responsibilities appropriate for the 
 47.22  existing systems in the program's service area.  The coalition 
 47.23  must also coordinate with other programs offered by school 
 47.24  boards under section 121.882, subdivision 2b, and programs 
 47.25  offered under section 145A.15.  
 47.26     Subd. 5.  [TRAINING.] The commissioner shall establish 
 47.27  training requirements for home visitors and minimum requirements 
 47.28  for supervision by a public health nurse.  The requirements for 
 47.29  nurses must be consistent with chapter 148.  Training must 
 47.30  include child development, positive parenting techniques, and 
 47.31  diverse cultural practices in child rearing and family systems.  
 47.32  A program may use grant money to train home visitors. 
 47.33     Subd. 6.  [EVALUATION.] (a) The commissioner shall evaluate 
 47.34  the effectiveness of the home visiting programs, taking into 
 47.35  consideration the following goals:  
 47.36     (1) appropriate child growth, development, and access to 
 48.1   health care; 
 48.2      (2) appropriate utilization of preventive health care and 
 48.3   medical care for acute illnesses; 
 48.4      (3) lower rates of substantiated child abuse and neglect; 
 48.5      (4) up-to-date immunizations; 
 48.6      (5) a reduction in unintended pregnancies; 
 48.7      (6) increasing families' understanding of lead poisoning 
 48.8   prevention; 
 48.9      (7) lower rates of unintentional injuries; and 
 48.10     (8) fewer hospitalizations and emergency room visits.  
 48.11     (b) The commissioner shall report to the legislature by 
 48.12  February 15, 1998, on the comprehensive plan for the universally 
 48.13  offered home visiting programs and recommend any draft 
 48.14  legislation needed to implement the plan.  The commissioner 
 48.15  shall report to the legislature biennially beginning December 
 48.16  15, 2001, on the effectiveness of the universally offered home 
 48.17  visiting programs.  In the report due December 15, 2001, the 
 48.18  commissioner shall include recommendations on the feasibility 
 48.19  and cost of expanding the program statewide.  
 48.20     Subd. 7.  [TECHNICAL ASSISTANCE.] The commissioner shall 
 48.21  provide administrative and technical assistance to each program, 
 48.22  including assistance conducting short- and long-term evaluations 
 48.23  of the home visiting program required under subdivision 6.  The 
 48.24  commissioner may request research and evaluation support from 
 48.25  the University of Minnesota.  
 48.26     Subd. 8.  [MATCHING FUNDS.] The commissioner and the grant 
 48.27  programs shall seek to supplement any state funding with private 
 48.28  and other nonstate funding sources, including other grants and 
 48.29  insurance coverage for services provided.  Program funding may 
 48.30  be used only to supplement, not to replace, existing funds being 
 48.31  used for home visiting.  
 48.32     Sec. 19.  Minnesota Statutes 1996, section 151.40, is 
 48.33  amended to read: 
 48.34     151.40 [POSSESSION AND SALE OF HYPODERMIC SYRINGES AND 
 48.35  NEEDLES.] 
 48.36     Subdivision 1.  [GENERALLY.] Except as otherwise provided 
 49.1   in subdivision 2, it shall be is unlawful for any person to 
 49.2   possess, control, manufacture, sell, furnish, dispense, or 
 49.3   otherwise dispose of hypodermic syringes or needles or any 
 49.4   instrument or implement which can be adapted for subcutaneous 
 49.5   injections, except by the following persons when acting in the 
 49.6   course of their practice or employment: licensed practitioners, 
 49.7   registered pharmacies and their employees or agents, licensed 
 49.8   pharmacists, licensed doctors of veterinary medicine or their 
 49.9   assistants, registered nurses, registered medical technologists, 
 49.10  medical interns, licensed drug wholesalers, their employees or 
 49.11  agents, licensed hospitals, licensed nursing homes, bona fide 
 49.12  hospitals where animals are treated, licensed morticians, 
 49.13  syringe and needle manufacturers, their dealers and agents, 
 49.14  persons engaged in animal husbandry, clinical laboratories, 
 49.15  persons engaged in bona fide research or education or industrial 
 49.16  use of hypodermic syringes and needles provided such persons 
 49.17  cannot use hypodermic syringes and needles for the 
 49.18  administration of drugs to human beings unless such drugs are 
 49.19  prescribed, dispensed, and administered by a person lawfully 
 49.20  authorized to do so, persons who administer drugs pursuant to an 
 49.21  order or direction of a licensed doctor of medicine or of a 
 49.22  licensed doctor of osteopathy duly licensed to practice medicine.
 49.23     Subd. 2.  [SALES OF LIMITED QUANTITIES OF CLEAN NEEDLES AND 
 49.24  SYRINGES.] (a) A registered pharmacy or its agent or a licensed 
 49.25  pharmacist may sell, without a prescription, unused hypodermic 
 49.26  needles and syringes in quantities of ten or fewer, provided 
 49.27  that the pharmacy or pharmacist complies with all of the 
 49.28  requirements of this subdivision. 
 49.29     (b) At any location where hypodermic needles and syringes 
 49.30  are kept for retail sale under this subdivision, the needles and 
 49.31  syringes shall be stored in a manner that makes them available 
 49.32  only to authorized personnel and not openly available to 
 49.33  customers. 
 49.34     (c) No registered pharmacy or licensed pharmacist may 
 49.35  advertise to the public the availability for retail sale, 
 49.36  without a prescription, of hypodermic needles or syringes in 
 50.1   quantities of ten or fewer. 
 50.2      (d) A registered pharmacy or licensed pharmacist that sells 
 50.3   hypodermic needles or syringes under this section may give the 
 50.4   purchaser the materials developed by the commissioner of health 
 50.5   under section 31. 
 50.6      Sec. 20.  Minnesota Statutes 1996, section 153A.17, is 
 50.7   amended to read: 
 50.8      153A.17 [EXPENSES; FEES.] 
 50.9      The expenses for administering the certification 
 50.10  requirements including the complaint handling system for hearing 
 50.11  aid dispensers in sections 153A.14 and 153A.15 and the consumer 
 50.12  information center under section 153A.18 must be paid from 
 50.13  initial application and examination fees, renewal fees, 
 50.14  penalties, and fines.  All fees are nonrefundable.  The 
 50.15  certificate application fee is $280 $165 for audiologists 
 50.16  registered under section 148.511 and $490 for all others, the 
 50.17  examination fee is $200 for the written portion and $200 for the 
 50.18  practical portion each time one or the other is taken, and the 
 50.19  trainee application fee is $100, except that the certification 
 50.20  application fee for a registered audiologist is $280 minus the 
 50.21  audiologist registration fee of $101.  In addition, both 
 50.22  certification and examination fees are subject to 
 50.23  Notwithstanding the policy set forth in section 16A.1285, 
 50.24  subdivision 2, a surcharge of $60 $165 for audiologists 
 50.25  registered under section 148.511 and $330 for all others shall 
 50.26  be paid at the time of application or renewal until June 30, 
 50.27  2003, to recover, over a five-year period, the commissioner's 
 50.28  accumulated direct expenditures for administering the 
 50.29  requirements of this chapter, but not registration of hearing 
 50.30  instrument dispensers under section 214.13, before November 1, 
 50.31  1994.  The penalty fee for late submission of a renewal 
 50.32  application is $70 $200.  All fees, penalties, and fines 
 50.33  received must be deposited in the state government special 
 50.34  revenue fund.  The commissioner may prorate the certification 
 50.35  fee for new applicants based on the number of quarters remaining 
 50.36  in the annual certification period. 
 51.1      Sec. 21.  Minnesota Statutes 1996, section 157.16, 
 51.2   subdivision 3, is amended to read: 
 51.3      Subd. 3.  [ESTABLISHMENT FEES; DEFINITIONS.] (a) The 
 51.4   following fees are required for food and beverage service 
 51.5   establishments, hotels, motels, lodging establishments, and 
 51.6   resorts licensed under this chapter.  Food and beverage service 
 51.7   establishments must pay the highest applicable fee under 
 51.8   paragraph (e), clause (1), (2), (3), or (4), and establishments 
 51.9   serving alcohol must pay the highest applicable fee under 
 51.10  paragraph (e), clause (6) or (7). 
 51.11     (b) All food and beverage service establishments, except 
 51.12  special event food stands, and all hotels, motels, lodging 
 51.13  establishments, and resorts shall pay an annual base fee of $100.
 51.14     (c) A special event food stand shall pay a flat fee of $60 
 51.15  annually.  "Special event food stand" means a fee category where 
 51.16  food is prepared or served in conjunction with celebrations, 
 51.17  county fairs, or special events from a special event food stand 
 51.18  as defined in section 157.15. 
 51.19     (d) A special event food stand-limited shall pay a flat fee 
 51.20  of $30. 
 51.21     (e) In addition to the base fee in paragraph (b), each food 
 51.22  and beverage service establishment, other than a special event 
 51.23  food stand, and each hotel, motel, lodging establishment, and 
 51.24  resort shall pay an additional annual fee for each fee category 
 51.25  as specified in this paragraph: 
 51.26     (1) Limited food menu selection, $30.  "Limited food menu 
 51.27  selection" means a fee category that provides one or more of the 
 51.28  following: 
 51.29     (i) prepackaged food that receives heat treatment and is 
 51.30  served in the package; 
 51.31     (ii) frozen pizza that is heated and served; 
 51.32     (iii) a continental breakfast such as rolls, coffee, juice, 
 51.33  milk, and cold cereal; 
 51.34     (iv) soft drinks, coffee, or nonalcoholic beverages; or 
 51.35     (v) cleaning for eating, drinking, or cooking utensils, 
 51.36  when the only food served is prepared off site. 
 52.1      (2) Small menu selection with limited equipment 
 52.2   establishment, including boarding establishments, $55.  
 52.3   "Small menu selection with limited equipment establishment" 
 52.4   means a fee category that has no salad bar and meets one or more 
 52.5   of the following: 
 52.6      (i) possesses food service equipment that consists of no 
 52.7   more than a deep fat fryer, a grill, two hot holding containers, 
 52.8   and one or more microwave ovens; 
 52.9      (ii) serves dipped ice cream or soft serve frozen desserts; 
 52.10     (iii) serves breakfast in an owner-occupied bed and 
 52.11  breakfast establishment; or 
 52.12     (iv) is a boarding establishment; or 
 52.13     (v) meets the equipment criteria in clause (3), item (i) or 
 52.14  (ii), and has a maximum patron seating capacity of not more than 
 52.15  50.  
 52.16     (3) Small Medium establishment with full menu selection, 
 52.17  $150.  "Small Medium establishment with full menu selection" 
 52.18  means a fee category that meets one or more of the following: 
 52.19     (i) possesses food service equipment that includes a range, 
 52.20  oven, steam table, salad bar, or salad preparation area; 
 52.21     (ii) possesses food service equipment that includes more 
 52.22  than one deep fat fryer, one grill, or two hot holding 
 52.23  containers; or 
 52.24     (iii) is an establishment where food is prepared at one 
 52.25  location and served at one or more separate locations. 
 52.26     Establishments meeting criteria in clause (2), item (v), 
 52.27  are not included in this fee category.  
 52.28     (4) Large establishment with full menu selection, $250.  
 52.29  "Large establishment with full menu selection" means either: 
 52.30     (i) a fee category that (A) meets the criteria in clause 
 52.31  (3), items (i) or (ii), for a small medium establishment with 
 52.32  full menu selection, (B) seats more than 175 people, and (C) 
 52.33  offers the full menu selection an average of five or more days a 
 52.34  week during the weeks of operation; or 
 52.35     (ii) a fee category that (A) meets the criteria in clause 
 52.36  (3), item (iii), for a small medium establishment with full menu 
 53.1   selection, and (B) prepares and serves 500 or more meals per day.
 53.2      (5) Other food and beverage service, including food carts, 
 53.3   mobile food units, seasonal temporary food stands, and seasonal 
 53.4   permanent food stands, $30. 
 53.5      (6) Beer or wine table service, $30.  "Beer or wine table 
 53.6   service" means a fee category where the only alcoholic beverage 
 53.7   service is beer or wine, served to customers seated at tables. 
 53.8      (7) Alcoholic beverage service, other than beer or wine 
 53.9   table service, $75. 
 53.10     "Alcohol beverage service, other than beer or wine table 
 53.11  service" means a fee category where alcoholic mixed drinks are 
 53.12  served or where beer or wine are served from a bar. 
 53.13     (8) Lodging per sleeping accommodation unit, $4, including 
 53.14  hotels, motels, lodging establishments, and resorts, up to a 
 53.15  maximum of $400.  "Lodging per sleeping accommodation unit" 
 53.16  means a fee category including the number of guest rooms, 
 53.17  cottages, or other rental units of a hotel, motel, lodging 
 53.18  establishment, or resort; or the number of beds in a dormitory. 
 53.19     (9) First public swimming pool, $100; each additional 
 53.20  public swimming pool, $50.  "Public swimming pool" means a fee 
 53.21  category that has the meaning given in Minnesota Rules, part 
 53.22  4717.0250, subpart 8. 
 53.23     (10) First spa, $50; each additional spa, $25.  "Spa pool" 
 53.24  means a fee category that has the meaning given in Minnesota 
 53.25  Rules, part 4717.0250, subpart 9. 
 53.26     (11) Private sewer or water, $30.  "Individual private 
 53.27  water" means a fee category with a water supply other than a 
 53.28  community public water supply as defined in Minnesota Rules, 
 53.29  chapter 4720.  "Individual private sewer" means a fee category 
 53.30  with an individual sewage treatment system which uses subsurface 
 53.31  treatment and disposal. 
 53.32     (f) A fee is not required for a food and beverage service 
 53.33  establishment operated by a school as defined in sections 120.05 
 53.34  and 120.101. 
 53.35     (g) A fee of $150 for review of the construction plans must 
 53.36  accompany the initial license application for food and beverage 
 54.1   service establishments, hotels, motels, lodging establishments, 
 54.2   or resorts. 
 54.3      (h) When existing food and beverage service establishments, 
 54.4   hotels, motels, lodging establishments, or resorts are 
 54.5   extensively remodeled, a fee of $150 must be submitted with the 
 54.6   remodeling plans. 
 54.7      (i) Seasonal temporary food stands, special event food 
 54.8   stands, and special event food stands-limited are not required 
 54.9   to submit construction or remodeling plans for review. 
 54.10     Sec. 22.  [157.25] [FOOD SAFETY QUALITY ASSURANCE.] 
 54.11     Subdivision 1.  [DEFINITIONS.] For purposes of this 
 54.12  section, the following terms have the meanings given them: 
 54.13     (1) "critical control point" means a point or procedure in 
 54.14  a specific food system where loss of control may result in an 
 54.15  unacceptable health risk; 
 54.16     (2) "HACCP" means hazard analysis critical control point; 
 54.17     (3) "HACCP plan" means a written document that delineates 
 54.18  the formal procedures for following the HACCP principles 
 54.19  developed by the national advisory committee on microbiological 
 54.20  criteria for foods; and 
 54.21     (4) "hazard" means any biological, chemical, or physical 
 54.22  property that may cause an unacceptable consumer health risk. 
 54.23     Subd. 2.  [PILOT PROJECT.] The commissioner of health shall 
 54.24  request proposals from the regulated food and beverage service 
 54.25  establishment industry to participate in a cooperative effort to 
 54.26  develop HACCP plans using quality assurance principles for 
 54.27  monitoring risks and hazards.  The commissioner shall select up 
 54.28  to 25 proposals for HACCP plans. 
 54.29     Sec. 23.  Minnesota Statutes 1996, section 256B.0625, 
 54.30  subdivision 14, is amended to read: 
 54.31     Subd. 14.  [DIAGNOSTIC, SCREENING, AND PREVENTIVE 
 54.32  SERVICES.] (a) Medical assistance covers diagnostic, screening, 
 54.33  and preventive services.  
 54.34     (b) "Preventive services" include services related to 
 54.35  pregnancy, including: 
 54.36     (1) services for those conditions which may complicate a 
 55.1   pregnancy and which may be available to a pregnant woman 
 55.2   determined to be at risk of poor pregnancy outcome; and 
 55.3      (2) prenatal HIV risk assessment, education, counseling, 
 55.4   and testing.  Preventive services available to a woman at risk 
 55.5   of poor pregnancy outcome may differ in an amount, duration, or 
 55.6   scope from those available to other individuals eligible for 
 55.7   medical assistance. 
 55.8      (c) "Screening services" include, but are not limited to, 
 55.9   blood lead tests. 
 55.10     Sec. 24.  Minnesota Statutes 1996, section 256B.69, is 
 55.11  amended by adding a subdivision to read: 
 55.12     Subd. 5c.  [MEDICAL EDUCATION AND RESEARCH TRUST FUND.] (a) 
 55.13  In January 1999 and each year thereafter, the commissioner of 
 55.14  human services shall transfer an amount equal to the reduction 
 55.15  in prepaid medical assistance and prepaid general assistance 
 55.16  medical care capitation rates, excluding nursing facility and 
 55.17  elderly waiver payments, resulting from paragraph (b) to the 
 55.18  medical education and research trust fund established under 
 55.19  section 62J.69.  The medical education and research trust fund 
 55.20  shall disburse funds to eligible programs within 60 days of 
 55.21  receipt of funds from the commissioner of human services. 
 55.22     (b) The base rate prior to plan specific adjustments for 
 55.23  prepaid medical assistance and prepaid general assistance 
 55.24  medical care capitation rates shall be reduced 4.5 percent for 
 55.25  Hennepin county, 1.4 percent for the remaining metropolitan 
 55.26  counties, and 1.2 percent for the nonmetropolitan Minnesota 
 55.27  counties. 
 55.28     (c) In the event a federal waiver is not approved by June 
 55.29  1, 1998, the transfers in 1999 shall be delayed one year. 
 55.30     Sec. 25.  Minnesota Statutes 1996, section 256J.69, is 
 55.31  amended by adding a subdivision to read: 
 55.32     Subd. 3.  [MEDICAL ASSISTANCE AND GENERAL ASSISTANCE 
 55.33  SERVICE.] The commissioner of health, in consultation with the 
 55.34  medical education and research costs advisory committee, shall 
 55.35  develop a system to recognize those teaching programs which 
 55.36  serve higher numbers or high proportions of public program 
 56.1   recipients and shall report to the legislative commission on 
 56.2   health care access by January 15, 1998, on an allocation formula 
 56.3   to implement this system. 
 56.4      Sec. 26.  [325F.785] [SALES OF HIV HOME COLLECTION KITS.] 
 56.5      Subdivision 1.  [DEFINITION.] For purposes of this section, 
 56.6   "seller" means a person who regularly sells goods at retail to 
 56.7   purchasers. 
 56.8      Subd. 2.  [PROVISION OF INFORMATION REQUIRED.] Effective 
 56.9   January 1, 1998, a seller may provide each purchaser of an HIV 
 56.10  home collection kit, at the time of purchase, with written 
 56.11  information about the phone numbers for public HIV counseling 
 56.12  and testing sites and the state's HIV hotline. 
 56.13     Sec. 27.  Minnesota Statutes 1996, section 326.37, 
 56.14  subdivision 1, is amended to read: 
 56.15     Subdivision 1.  [RULES.] The state commissioner of health 
 56.16  may, by rule, prescribe minimum standards which shall be 
 56.17  uniform, and which standards shall thereafter be effective for 
 56.18  all new plumbing installations, including additions, extensions, 
 56.19  alterations, and replacements connected with any water or sewage 
 56.20  disposal system owned or operated by or for any municipality, 
 56.21  institution, factory, office building, hotel, apartment 
 56.22  building, or any other place of business regardless of location 
 56.23  or the population of the city or town in which located.  
 56.24  Notwithstanding the provisions of Minnesota Rules, part 
 56.25  4715.3130, as they apply to review of plans and specifications, 
 56.26  the commissioner may allow plumbing construction, alteration, or 
 56.27  extension to proceed without approval of the plans or 
 56.28  specifications by the commissioner. 
 56.29     The commissioner shall administer the provisions of 
 56.30  sections 326.37 to 326.45 and for such purposes may employ 
 56.31  plumbing inspectors and other assistants. 
 56.32     Sec. 28.  [AMERICAN INDIAN DIABETES PREVENTION ADVISORY 
 56.33  TASK FORCE.] 
 56.34     Subdivision 1.  [ESTABLISHMENT.] The commissioner of health 
 56.35  shall convene an American Indian diabetes prevention advisory 
 56.36  task force.  The task force must include representatives from 
 57.1   the American Indian tribes located in the state and urban 
 57.2   American Indian representatives. 
 57.3      Subd. 2.  [DUTIES.] The task force shall advise the 
 57.4   commissioner on the adaptation of curricula and the 
 57.5   dissemination of information designed to reduce the risk factors 
 57.6   associated with diabetes among American Indian school children 
 57.7   in grades 1 through 4.  The curricula and information must be 
 57.8   sensitive to traditional American Indian values and culture and 
 57.9   must encourage full participation by the American Indian 
 57.10  community. 
 57.11     Sec. 29.  [RULE CHANGE; RADIOGRAPHIC ABSORPTIONMETRY.] 
 57.12     The commissioner of health shall amend Minnesota Rules, 
 57.13  part 4730.1210, subpart 2, item G, to permit the use of direct 
 57.14  exposure x-ray film in radiographic absorptionmetry for the 
 57.15  diagnosis and management of osteoporosis.  The commissioner may 
 57.16  use the rulemaking procedures under Minnesota Statutes, section 
 57.17  14.388. 
 57.18     Sec. 30.  [MINORITY HEALTH INITIATIVE.] 
 57.19     Subdivision 1.  [PURPOSE.] The purpose of this section is 
 57.20  to plan for the expansion and increase of information and 
 57.21  statistical research on minority health in Minnesota.  The plan 
 57.22  must build upon the recommendations of the 1997 populations of 
 57.23  color in Minnesota health status report. 
 57.24     Subd. 2.  [REPORT TO THE LEGISLATURE.] (a) The commissioner 
 57.25  of health, through the office of minority health, shall prepare 
 57.26  and transmit to the legislature, according to Minnesota 
 57.27  Statutes, section 3.195, and no later than January 15, 1998, a 
 57.28  written report addressing the following: 
 57.29     (1) identifying the legal and administrative barriers that 
 57.30  hinder the sharing of information on minority health issues 
 57.31  among executive branch agencies, and recommending remedies to 
 57.32  these barriers; 
 57.33     (2) assessing the current database of information on 
 57.34  minority health issues, evaluating data collection standards and 
 57.35  procedures in the department of health, identifying minority 
 57.36  health issues that should be given priority for increased 
 58.1   research to close the gaps and disparities including cancer 
 58.2   incidence among populations of color, and recommending methods 
 58.3   for expanding the current database of information on minority 
 58.4   health; and 
 58.5      (3) planning a grant program targeted at supporting 
 58.6   minority health and wellness programs that focus on prevention 
 58.7   of illness and disease, health education, and health promotion. 
 58.8      (b) As part of the report in paragraph (a), the 
 58.9   commissioner, through the office of minority health, shall study 
 58.10  how the department of health could be better organized to 
 58.11  accomplish the tasks specified in paragraph (a) and shall 
 58.12  propose an organizational structure to accomplish these tasks. 
 58.13     (c) The commissioner, through the office of minority 
 58.14  health, may appoint advisory committees as appropriate to 
 58.15  accomplish the tasks in paragraphs (a) and (b).  The terms, 
 58.16  compensation, and removal of members are governed by Minnesota 
 58.17  Statutes, section 15.059, except that members do not receive per 
 58.18  diem compensation. 
 58.19     Sec. 31.  [MATERIALS RELATED TO COUNSELING AND TESTING.] 
 58.20     The commissioner of health shall provide technical 
 58.21  assistance to pharmacies and to sellers related to compliance 
 58.22  with Minnesota Statutes, sections 151.40 and 325F.785.  The 
 58.23  commissioner shall develop printed materials, including the 
 58.24  written information described under Minnesota Statutes, section 
 58.25  325F.785, and shall provide these printed materials at no charge 
 58.26  to pharmacies that sell hypodermic needles or syringes under 
 58.27  Minnesota Statutes, section 151.40 and sellers of HIV home 
 58.28  collection kits under Minnesota Statutes, section 325F.785.  A 
 58.29  pharmacy or seller may request and the commissioner may 
 58.30  authorize use of other methods for providing written information 
 58.31  to purchasers. 
 58.32     Sec. 32.  [STUDY OF HIV AND HBV PREVENTION PROGRAM.] 
 58.33     The commissioner of health shall evaluate the effectiveness 
 58.34  of the HIV and HBV prevention program established under 
 58.35  Minnesota Statutes, sections 214.17 to 214.25.  The commissioner 
 58.36  shall evaluate the effectiveness of the program in maintaining 
 59.1   public confidence in the safety of health care provider 
 59.2   settings, educating the public about HIV infection risk in such 
 59.3   settings, prevention of HIV and HBV infections, and fairly and 
 59.4   efficiently working with affected health care providers.  The 
 59.5   results in Minnesota shall be compared to similar efforts in 
 59.6   other states.  The commissioner shall present recommendations to 
 59.7   the legislature by January 15, 1998, on whether the program 
 59.8   should be continued, and whether modifications to the program 
 59.9   are necessary if a recommendation is made to continue the 
 59.10  program. 
 59.11     Sec. 33.  [DEMONSTRATION PROJECTS FOR HIV EDUCATION IN 
 59.12  SCHOOLS.] 
 59.13     The commissioner of children, families, and learning shall 
 59.14  establish a demonstration project to provide grants to school 
 59.15  districts to develop effective strategies and programs to 
 59.16  prevent and reduce the risk of HIV/AIDS as required under 
 59.17  Minnesota Statutes, section 121.203.  In selecting school 
 59.18  districts to participate in the demonstration project, the 
 59.19  commissioner shall give first priority to school districts 
 59.20  located outside of the seven-county metropolitan area, and 
 59.21  second priority to school districts in the seven-county 
 59.22  metropolitan area that are located outside of the cities of 
 59.23  Minneapolis and St. Paul.  The commissioner shall issue a 
 59.24  request for proposals by October 1, 1997, and shall select 
 59.25  school districts by December 15, 1997.  The commissioner shall 
 59.26  evaluate the demonstration projects and by June 15, 1999, 
 59.27  develop model programs for school districts to use in 
 59.28  implementing Minnesota Statutes, section 121.203. 
 59.29     Sec. 34.  [REPORT TO LEGISLATURE.] 
 59.30     By July 1, 1999, the emergency medical services regulatory 
 59.31  board shall submit to the legislature a comprehensive proposal 
 59.32  for regulating ambulance service rates. 
 59.33     Sec. 35.  [REPORT REQUIRED; CALS PROGRAM.] 
 59.34     The emergency medical services regulatory board, by 
 59.35  December 1, 1999, shall report to the chairs of the house health 
 59.36  and human services finance division and the senate health and 
 60.1   family security budget division on the implementation of the 
 60.2   comprehensive advanced life support (CALS) program or similar 
 60.3   program. 
 60.4      Sec. 36.  [EFFECTIVE DATE.] 
 60.5      Sections 3 to 5 and 19 are effective July 1, 1998. 
 60.6                              ARTICLE 3 
 60.7                      LONG-TERM CARE FACILITIES
 60.8      Section 1.  Minnesota Statutes 1996, section 144A.071, 
 60.9   subdivision 1, is amended to read: 
 60.10     Subdivision 1.  [FINDINGS.] The legislature declares that a 
 60.11  moratorium on the licensure and medical assistance certification 
 60.12  of new nursing home beds and construction projects that 
 60.13  exceed the lesser of $500,000 or 25 percent of a facility's 
 60.14  appraised value $1,000,000 is necessary to control nursing home 
 60.15  expenditure growth and enable the state to meet the needs of its 
 60.16  elderly by providing high quality services in the most 
 60.17  appropriate manner along a continuum of care.  
 60.18     Sec. 2.  Minnesota Statutes 1996, section 144A.071, 
 60.19  subdivision 2, is amended to read: 
 60.20     Subd. 2.  [MORATORIUM.] The commissioner of health, in 
 60.21  coordination with the commissioner of human services, shall deny 
 60.22  each request for new licensed or certified nursing home or 
 60.23  certified boarding care beds except as provided in subdivision 3 
 60.24  or 4a, or section 144A.073.  "Certified bed" means a nursing 
 60.25  home bed or a boarding care bed certified by the commissioner of 
 60.26  health for the purposes of the medical assistance program, under 
 60.27  United States Code, title 42, sections 1396 et seq.  
 60.28     The commissioner of human services, in coordination with 
 60.29  the commissioner of health, shall deny any request to issue a 
 60.30  license under section 252.28 and chapter 245A to a nursing home 
 60.31  or boarding care home, if that license would result in an 
 60.32  increase in the medical assistance reimbursement amount.  
 60.33     In addition, the commissioner of health must not approve 
 60.34  any construction project whose cost exceeds $500,000, or 25 
 60.35  percent of the facility's appraised value, whichever is less, 
 60.36  $1,000,000 unless: 
 61.1      (a) any construction costs exceeding the lesser of $500,000 
 61.2   or 25 percent of the facility's appraised value $1,000,000 are 
 61.3   not added to the facility's appraised value and are not included 
 61.4   in the facility's payment rate for reimbursement under the 
 61.5   medical assistance program; or 
 61.6      (b) the project: 
 61.7      (1) has been approved through the process described in 
 61.8   section 144A.073; 
 61.9      (2) meets an exception in subdivision 3 or 4a; 
 61.10     (3) is necessary to correct violations of state or federal 
 61.11  law issued by the commissioner of health; 
 61.12     (4) is necessary to repair or replace a portion of the 
 61.13  facility that was damaged by fire, lightning, groundshifts, or 
 61.14  other such hazards, including environmental hazards, provided 
 61.15  that the provisions of subdivision 4a, clause (a), are met; 
 61.16     (5) as of May 1, 1992, the facility has submitted to the 
 61.17  commissioner of health written documentation evidencing that the 
 61.18  facility meets the "commenced construction" definition as 
 61.19  specified in subdivision 1a, clause (d), or that substantial 
 61.20  steps have been taken prior to April 1, 1992, relating to the 
 61.21  construction project.  "Substantial steps" require that the 
 61.22  facility has made arrangements with outside parties relating to 
 61.23  the construction project and include the hiring of an architect 
 61.24  or construction firm, submission of preliminary plans to the 
 61.25  department of health or documentation from a financial 
 61.26  institution that financing arrangements for the construction 
 61.27  project have been made; or 
 61.28     (6) is being proposed by a licensed nursing facility that 
 61.29  is not certified to participate in the medical assistance 
 61.30  program and will not result in new licensed or certified beds. 
 61.31     Prior to the final plan approval of any construction 
 61.32  project, the commissioner of health shall be provided with an 
 61.33  itemized cost estimate for the project construction costs.  If a 
 61.34  construction project is anticipated to be completed in phases, 
 61.35  the total estimated cost of all phases of the project shall be 
 61.36  submitted to the commissioner and shall be considered as one 
 62.1   construction project.  Once the construction project is 
 62.2   completed and prior to the final clearance by the commissioner, 
 62.3   the total project construction costs for the construction 
 62.4   project shall be submitted to the commissioner.  If the final 
 62.5   project construction cost exceeds the dollar threshold in this 
 62.6   subdivision, the commissioner of human services shall not 
 62.7   recognize any of the project construction costs or the related 
 62.8   financing costs in excess of this threshold in establishing the 
 62.9   facility's property-related payment rate. 
 62.10     The dollar thresholds for construction projects are as 
 62.11  follows:  for construction projects other than those authorized 
 62.12  in clauses (1) to (6), the dollar threshold is $500,000 or 25 
 62.13  percent of appraised value, whichever is less $1,000,000.  For 
 62.14  projects authorized after July 1, 1993, under clause (1), the 
 62.15  dollar threshold is the cost estimate submitted with a proposal 
 62.16  for an exception under section 144A.073, plus inflation as 
 62.17  calculated according to section 256B.431, subdivision 3f, 
 62.18  paragraph (a).  For projects authorized under clauses (2) to 
 62.19  (4), the dollar threshold is the itemized estimate project 
 62.20  construction costs submitted to the commissioner of health at 
 62.21  the time of final plan approval, plus inflation as calculated 
 62.22  according to section 256B.431, subdivision 3f, paragraph (a). 
 62.23     The commissioner of health shall adopt rules to implement 
 62.24  this section or to amend the emergency rules for granting 
 62.25  exceptions to the moratorium on nursing homes under section 
 62.26  144A.073.  
 62.27     Sec. 3.  Minnesota Statutes 1996, section 144A.071, 
 62.28  subdivision 4a, is amended to read: 
 62.29     Subd. 4a.  [EXCEPTIONS FOR REPLACEMENT BEDS.] It is in the 
 62.30  best interest of the state to ensure that nursing homes and 
 62.31  boarding care homes continue to meet the physical plant 
 62.32  licensing and certification requirements by permitting certain 
 62.33  construction projects.  Facilities should be maintained in 
 62.34  condition to satisfy the physical and emotional needs of 
 62.35  residents while allowing the state to maintain control over 
 62.36  nursing home expenditure growth. 
 63.1      The commissioner of health in coordination with the 
 63.2   commissioner of human services, may approve the renovation, 
 63.3   replacement, upgrading, or relocation of a nursing home or 
 63.4   boarding care home, under the following conditions: 
 63.5      (a) to license or certify beds in a new facility 
 63.6   constructed to replace a facility or to make repairs in an 
 63.7   existing facility that was destroyed or damaged after June 30, 
 63.8   1987, by fire, lightning, or other hazard provided:  
 63.9      (i) destruction was not caused by the intentional act of or 
 63.10  at the direction of a controlling person of the facility; 
 63.11     (ii) at the time the facility was destroyed or damaged the 
 63.12  controlling persons of the facility maintained insurance 
 63.13  coverage for the type of hazard that occurred in an amount that 
 63.14  a reasonable person would conclude was adequate; 
 63.15     (iii) the net proceeds from an insurance settlement for the 
 63.16  damages caused by the hazard are applied to the cost of the new 
 63.17  facility or repairs; 
 63.18     (iv) the new facility is constructed on the same site as 
 63.19  the destroyed facility or on another site subject to the 
 63.20  restrictions in section 144A.073, subdivision 5; 
 63.21     (v) the number of licensed and certified beds in the new 
 63.22  facility does not exceed the number of licensed and certified 
 63.23  beds in the destroyed facility; and 
 63.24     (vi) the commissioner determines that the replacement beds 
 63.25  are needed to prevent an inadequate supply of beds. 
 63.26  Project construction costs incurred for repairs authorized under 
 63.27  this clause shall not be considered in the dollar threshold 
 63.28  amount defined in subdivision 2; 
 63.29     (b) to license or certify beds that are moved from one 
 63.30  location to another within a nursing home facility, provided the 
 63.31  total costs of remodeling performed in conjunction with the 
 63.32  relocation of beds does not exceed 25 percent of the appraised 
 63.33  value of the facility or $500,000, whichever is less $1,000,000; 
 63.34     (c) to license or certify beds in a project recommended for 
 63.35  approval under section 144A.073; 
 63.36     (d) to license or certify beds that are moved from an 
 64.1   existing state nursing home to a different state facility, 
 64.2   provided there is no net increase in the number of state nursing 
 64.3   home beds; 
 64.4      (e) to certify and license as nursing home beds boarding 
 64.5   care beds in a certified boarding care facility if the beds meet 
 64.6   the standards for nursing home licensure, or in a facility that 
 64.7   was granted an exception to the moratorium under section 
 64.8   144A.073, and if the cost of any remodeling of the facility does 
 64.9   not exceed 25 percent of the appraised value of the facility or 
 64.10  $500,000, whichever is less $1,000,000.  If boarding care beds 
 64.11  are licensed as nursing home beds, the number of boarding care 
 64.12  beds in the facility must not increase beyond the number 
 64.13  remaining at the time of the upgrade in licensure.  The 
 64.14  provisions contained in section 144A.073 regarding the upgrading 
 64.15  of the facilities do not apply to facilities that satisfy these 
 64.16  requirements; 
 64.17     (f) to license and certify up to 40 beds transferred from 
 64.18  an existing facility owned and operated by the Amherst H. Wilder 
 64.19  Foundation in the city of St. Paul to a new unit at the same 
 64.20  location as the existing facility that will serve persons with 
 64.21  Alzheimer's disease and other related disorders.  The transfer 
 64.22  of beds may occur gradually or in stages, provided the total 
 64.23  number of beds transferred does not exceed 40.  At the time of 
 64.24  licensure and certification of a bed or beds in the new unit, 
 64.25  the commissioner of health shall delicense and decertify the 
 64.26  same number of beds in the existing facility.  As a condition of 
 64.27  receiving a license or certification under this clause, the 
 64.28  facility must make a written commitment to the commissioner of 
 64.29  human services that it will not seek to receive an increase in 
 64.30  its property-related payment rate as a result of the transfers 
 64.31  allowed under this paragraph; 
 64.32     (g) to license and certify nursing home beds to replace 
 64.33  currently licensed and certified boarding care beds which may be 
 64.34  located either in a remodeled or renovated boarding care or 
 64.35  nursing home facility or in a remodeled, renovated, newly 
 64.36  constructed, or replacement nursing home facility within the 
 65.1   identifiable complex of health care facilities in which the 
 65.2   currently licensed boarding care beds are presently located, 
 65.3   provided that the number of boarding care beds in the facility 
 65.4   or complex are decreased by the number to be licensed as nursing 
 65.5   home beds and further provided that, if the total costs of new 
 65.6   construction, replacement, remodeling, or renovation exceed ten 
 65.7   percent of the appraised value of the facility or $200,000, 
 65.8   whichever is less, the facility makes a written commitment to 
 65.9   the commissioner of human services that it will not seek to 
 65.10  receive an increase in its property-related payment rate by 
 65.11  reason of the new construction, replacement, remodeling, or 
 65.12  renovation.  The provisions contained in section 144A.073 
 65.13  regarding the upgrading of facilities do not apply to facilities 
 65.14  that satisfy these requirements; 
 65.15     (h) to license as a nursing home and certify as a nursing 
 65.16  facility a facility that is licensed as a boarding care facility 
 65.17  but not certified under the medical assistance program, but only 
 65.18  if the commissioner of human services certifies to the 
 65.19  commissioner of health that licensing the facility as a nursing 
 65.20  home and certifying the facility as a nursing facility will 
 65.21  result in a net annual savings to the state general fund of 
 65.22  $200,000 or more; 
 65.23     (i) to certify, after September 30, 1992, and prior to July 
 65.24  1, 1993, existing nursing home beds in a facility that was 
 65.25  licensed and in operation prior to January 1, 1992; 
 65.26     (j) to license and certify new nursing home beds to replace 
 65.27  beds in a facility condemned as part of an economic 
 65.28  redevelopment plan in a city of the first class, provided the 
 65.29  new facility is located within one mile of the site of the old 
 65.30  facility.  Operating and property costs for the new facility 
 65.31  must be determined and allowed under existing reimbursement 
 65.32  rules; 
 65.33     (k) to license and certify up to 20 new nursing home beds 
 65.34  in a community-operated hospital and attached convalescent and 
 65.35  nursing care facility with 40 beds on April 21, 1991, that 
 65.36  suspended operation of the hospital in April 1986.  The 
 66.1   commissioner of human services shall provide the facility with 
 66.2   the same per diem property-related payment rate for each 
 66.3   additional licensed and certified bed as it will receive for its 
 66.4   existing 40 beds; 
 66.5      (l) to license or certify beds in renovation, replacement, 
 66.6   or upgrading projects as defined in section 144A.073, 
 66.7   subdivision 1, so long as the cumulative total costs of the 
 66.8   facility's remodeling projects do not exceed 25 percent of the 
 66.9   appraised value of the facility or $500,000, whichever is 
 66.10  less $1,000,000; 
 66.11     (m) to license and certify beds that are moved from one 
 66.12  location to another for the purposes of converting up to five 
 66.13  four-bed wards to single or double occupancy rooms in a nursing 
 66.14  home that, as of January 1, 1993, was county-owned and had a 
 66.15  licensed capacity of 115 beds; 
 66.16     (n) to allow a facility that on April 16, 1993, was a 
 66.17  106-bed licensed and certified nursing facility located in 
 66.18  Minneapolis to layaway all of its licensed and certified nursing 
 66.19  home beds.  These beds may be relicensed and recertified in a 
 66.20  newly-constructed teaching nursing home facility affiliated with 
 66.21  a teaching hospital upon approval by the legislature.  The 
 66.22  proposal must be developed in consultation with the interagency 
 66.23  committee on long-term care planning.  The beds on layaway 
 66.24  status shall have the same status as voluntarily delicensed and 
 66.25  decertified beds, except that beds on layaway status remain 
 66.26  subject to the surcharge in section 256.9657.  This layaway 
 66.27  provision expires July 1, 1997 1998; 
 66.28     (o) to allow a project which will be completed in 
 66.29  conjunction with an approved moratorium exception project for a 
 66.30  nursing home in southern Cass county and which is directly 
 66.31  related to that portion of the facility that must be repaired, 
 66.32  renovated, or replaced, to correct an emergency plumbing problem 
 66.33  for which a state correction order has been issued and which 
 66.34  must be corrected by August 31, 1993; 
 66.35     (p) to allow a facility that on April 16, 1993, was a 
 66.36  368-bed licensed and certified nursing facility located in 
 67.1   Minneapolis to layaway, upon 30 days prior written notice to the 
 67.2   commissioner, up to 30 of the facility's licensed and certified 
 67.3   beds by converting three-bed wards to single or double 
 67.4   occupancy.  Beds on layaway status shall have the same status as 
 67.5   voluntarily delicensed and decertified beds except that beds on 
 67.6   layaway status remain subject to the surcharge in section 
 67.7   256.9657, remain subject to the license application and renewal 
 67.8   fees under section 144A.07 and shall be subject to a $100 per 
 67.9   bed reactivation fee.  In addition, at any time within three 
 67.10  years of the effective date of the layaway, the beds on layaway 
 67.11  status may be: 
 67.12     (1) relicensed and recertified upon relocation and 
 67.13  reactivation of some or all of the beds to an existing licensed 
 67.14  and certified facility or facilities located in Pine River, 
 67.15  Brainerd, or International Falls; provided that the total 
 67.16  project construction costs related to the relocation of beds 
 67.17  from layaway status for any facility receiving relocated beds 
 67.18  may not exceed the dollar threshold provided in subdivision 2 
 67.19  unless the construction project has been approved through the 
 67.20  moratorium exception process under section 144A.073; 
 67.21     (2) relicensed and recertified, upon reactivation of some 
 67.22  or all of the beds within the facility which placed the beds in 
 67.23  layaway status, if the commissioner has determined a need for 
 67.24  the reactivation of the beds on layaway status. 
 67.25     The property-related payment rate of a facility placing 
 67.26  beds on layaway status must be adjusted by the incremental 
 67.27  change in its rental per diem after recalculating the rental per 
 67.28  diem as provided in section 256B.431, subdivision 3a, paragraph 
 67.29  (d).  The property-related payment rate for a facility 
 67.30  relicensing and recertifying beds from layaway status must be 
 67.31  adjusted by the incremental change in its rental per diem after 
 67.32  recalculating its rental per diem using the number of beds after 
 67.33  the relicensing to establish the facility's capacity day 
 67.34  divisor, which shall be effective the first day of the month 
 67.35  following the month in which the relicensing and recertification 
 67.36  became effective.  Any beds remaining on layaway status more 
 68.1   than three years after the date the layaway status became 
 68.2   effective must be removed from layaway status and immediately 
 68.3   delicensed and decertified; 
 68.4      (q) to license and certify beds in a renovation and 
 68.5   remodeling project to convert 13 three-bed wards into 13 two-bed 
 68.6   rooms and 13 single-bed rooms, expand space, and add 
 68.7   improvements in a nursing home that, as of January 1, 1994, met 
 68.8   the following conditions:  the nursing home was located in 
 68.9   Ramsey county; was not owned by a hospital corporation; had a 
 68.10  licensed capacity of 64 beds; and had been ranked among the top 
 68.11  15 applicants by the 1993 moratorium exceptions advisory review 
 68.12  panel.  The total project construction cost estimate for this 
 68.13  project must not exceed the cost estimate submitted in 
 68.14  connection with the 1993 moratorium exception process; 
 68.15     (r) to license and certify beds in a renovation and 
 68.16  remodeling project to convert 12 four-bed wards into 24 two-bed 
 68.17  rooms, expand space, and add improvements in a nursing home 
 68.18  that, as of January 1, 1994, met the following conditions:  the 
 68.19  nursing home was located in Ramsey county; had a licensed 
 68.20  capacity of 154 beds; and had been ranked among the top 15 
 68.21  applicants by the 1993 moratorium exceptions advisory review 
 68.22  panel.  The total project construction cost estimate for this 
 68.23  project must not exceed the cost estimate submitted in 
 68.24  connection with the 1993 moratorium exception process; 
 68.25     (s) (r) to license and certify up to 117 beds that are 
 68.26  relocated from a licensed and certified 138-bed nursing facility 
 68.27  located in St. Paul to a hospital with 130 licensed hospital 
 68.28  beds located in South St. Paul, provided that the nursing 
 68.29  facility and hospital are owned by the same or a related 
 68.30  organization and that prior to the date the relocation is 
 68.31  completed the hospital ceases operation of its inpatient 
 68.32  hospital services at that hospital.  After relocation, the 
 68.33  nursing facility's status under section 256B.431, subdivision 
 68.34  2j, shall be the same as it was prior to relocation.  The 
 68.35  nursing facility's property-related payment rate resulting from 
 68.36  the project authorized in this paragraph shall become effective 
 69.1   no earlier than April 1, 1996.  For purposes of calculating the 
 69.2   incremental change in the facility's rental per diem resulting 
 69.3   from this project, the allowable appraised value of the nursing 
 69.4   facility portion of the existing health care facility physical 
 69.5   plant prior to the renovation and relocation may not exceed 
 69.6   $2,490,000; 
 69.7      (t) (s) to license and certify two beds in a facility to 
 69.8   replace beds that were voluntarily delicensed and decertified on 
 69.9   June 28, 1991; 
 69.10     (u) (t) to allow 16 licensed and certified beds located on 
 69.11  July 1, 1994, in a 142-bed nursing home and 21-bed boarding care 
 69.12  home facility in Minneapolis, notwithstanding the licensure and 
 69.13  certification after July 1, 1995, of the Minneapolis facility as 
 69.14  a 147-bed nursing home facility after completion of a 
 69.15  construction project approved in 1993 under section 144A.073, to 
 69.16  be laid away upon 30 days' prior written notice to the 
 69.17  commissioner.  Beds on layaway status shall have the same status 
 69.18  as voluntarily delicensed or decertified beds except that they 
 69.19  shall remain subject to the surcharge in section 256.9657.  The 
 69.20  16 beds on layaway status may be relicensed as nursing home beds 
 69.21  and recertified at any time within five years of the effective 
 69.22  date of the layaway upon relocation of some or all of the beds 
 69.23  to a licensed and certified facility located in Watertown, 
 69.24  provided that the total project construction costs related to 
 69.25  the relocation of beds from layaway status for the Watertown 
 69.26  facility may not exceed the dollar threshold provided in 
 69.27  subdivision 2 unless the construction project has been approved 
 69.28  through the moratorium exception process under section 144A.073. 
 69.29     The property-related payment rate of the facility placing 
 69.30  beds on layaway status must be adjusted by the incremental 
 69.31  change in its rental per diem after recalculating the rental per 
 69.32  diem as provided in section 256B.431, subdivision 3a, paragraph 
 69.33  (d).  The property-related payment rate for the facility 
 69.34  relicensing and recertifying beds from layaway status must be 
 69.35  adjusted by the incremental change in its rental per diem after 
 69.36  recalculating its rental per diem using the number of beds after 
 70.1   the relicensing to establish the facility's capacity day 
 70.2   divisor, which shall be effective the first day of the month 
 70.3   following the month in which the relicensing and recertification 
 70.4   became effective.  Any beds remaining on layaway status more 
 70.5   than five years after the date the layaway status became 
 70.6   effective must be removed from layaway status and immediately 
 70.7   delicensed and decertified; 
 70.8      (v) (u) to license and certify beds that are moved within 
 70.9   an existing area of a facility or to a newly-constructed 
 70.10  addition which is built for the purpose of eliminating three- 
 70.11  and four-bed rooms and adding space for dining, lounge areas, 
 70.12  bathing rooms, and ancillary service areas in a nursing home 
 70.13  that, as of January 1, 1995, was located in Fridley and had a 
 70.14  licensed capacity of 129 beds; or 
 70.15     (w) (v) to relocate 36 beds in Crow Wing county and four 
 70.16  beds from Hennepin county to a 160-bed facility in Crow Wing 
 70.17  county, provided all the affected beds are under common 
 70.18  ownership.; or 
 70.19     (w) to license and certify beds in a renovation and 
 70.20  remodeling project to convert 13 three-bed wards into 13 two-bed 
 70.21  rooms and 13 single-bed rooms, expand space, and add 
 70.22  improvements in a nursing home that, as of January 1, 1994, met 
 70.23  the following conditions:  the nursing home was located in 
 70.24  Ramsey county, was not owned by a hospital corporation, had a 
 70.25  licensed capacity of 64 beds, and had been ranked among the top 
 70.26  15 applicants by the 1993 moratorium exceptions advisory review 
 70.27  panel.  The total project construction cost estimate for this 
 70.28  project must not exceed the cost estimate submitted in 
 70.29  connection with the 1993 moratorium exception process. 
 70.30     Sec. 4.  Minnesota Statutes 1996, section 144A.073, 
 70.31  subdivision 2, is amended to read: 
 70.32     Subd. 2.  [REQUEST FOR PROPOSALS.] At the authorization by 
 70.33  the legislature of additional medical assistance expenditures 
 70.34  for exceptions to the moratorium on nursing homes, the 
 70.35  interagency committee shall publish in the State Register a 
 70.36  request for proposals for nursing home projects to be licensed 
 71.1   or certified under section 144A.071, subdivision 4a, clause 
 71.2   (c).  The public notice of this funding and the request for 
 71.3   proposals must specify how the approval criteria will be 
 71.4   prioritized by the advisory review panel, the interagency 
 71.5   long-term care planning committee, and the commissioner.  The 
 71.6   notice must describe the information that must accompany a 
 71.7   request and state that proposals must be submitted to the 
 71.8   interagency committee within 90 days of the date of 
 71.9   publication.  The notice must include the amount of the 
 71.10  legislative appropriation available for the additional costs to 
 71.11  the medical assistance program of projects approved under this 
 71.12  section.  If no money is appropriated for a year, the 
 71.13  interagency committee shall publish a notice to that effect, and 
 71.14  no proposals shall be requested.  If money is appropriated, the 
 71.15  interagency committee shall initiate the application and review 
 71.16  process described in this section at least twice each biennium 
 71.17  and up to four times each biennium, according to dates 
 71.18  established by rule.  Authorized funds shall be allocated 
 71.19  proportionally to the number of processes.  Funds not encumbered 
 71.20  by an earlier process within a biennium shall carry forward to 
 71.21  subsequent iterations of the process.  Authorization for 
 71.22  expenditures does not carry forward into the following 
 71.23  biennium.  To be considered for approval, a proposal must 
 71.24  include the following information: 
 71.25     (1) whether the request is for renovation, replacement, 
 71.26  upgrading, conversion, or relocation; 
 71.27     (2) a description of the problem the project is designed to 
 71.28  address; 
 71.29     (3) a description of the proposed project; 
 71.30     (4) an analysis of projected costs of the nursing facility 
 71.31  proposal, which are not required to exceed the cost threshold 
 71.32  referred to in section 144A.071, subdivision 1, to be considered 
 71.33  under this section, including initial construction and 
 71.34  remodeling costs; site preparation costs; financing costs, 
 71.35  including the current estimated long-term financing costs of the 
 71.36  proposal, which consists of estimates of the amount and sources 
 72.1   of money, reserves if required under the proposed funding 
 72.2   mechanism, annual payments schedule, interest rates, length of 
 72.3   term, closing costs and fees, insurance costs, and any completed 
 72.4   marketing study or underwriting review; and estimated operating 
 72.5   costs during the first two years after completion of the 
 72.6   project; 
 72.7      (5) for proposals involving replacement of all or part of a 
 72.8   facility, the proposed location of the replacement facility and 
 72.9   an estimate of the cost of addressing the problem through 
 72.10  renovation; 
 72.11     (6) for proposals involving renovation, an estimate of the 
 72.12  cost of addressing the problem through replacement; 
 72.13     (7) the proposed timetable for commencing construction and 
 72.14  completing the project; 
 72.15     (8) a statement of any licensure or certification issues, 
 72.16  such as certification survey deficiencies; 
 72.17     (9) the proposed relocation plan for current residents if 
 72.18  beds are to be closed so that the department of human services 
 72.19  can estimate the total costs of a proposal; and 
 72.20     (10) other information required by permanent rule of the 
 72.21  commissioner of health in accordance with subdivisions 4 and 8. 
 72.22     Sec. 5.  Minnesota Statutes 1996, section 144A.073, is 
 72.23  amended by adding a subdivision to read: 
 72.24     Subd. 9.  [BUDGET REQUEST.] The commissioner of finance 
 72.25  shall include in each biennial budget request a line-item for 
 72.26  the nursing home moratorium exception process.  If the 
 72.27  commissioner does not request funding for this item, the 
 72.28  commissioner of finance must justify the decision in the budget 
 72.29  pages. 
 72.30     Sec. 6.  Minnesota Statutes 1996, section 256B.421, 
 72.31  subdivision 1, is amended to read: 
 72.32     Subdivision 1.  [SCOPE.] For the purposes of this section 
 72.33  and sections 256B.41, 256B.411, 256B.431, 256B.432, 
 72.34  256B.433, 256B.434, 256B.435, 256B.47, 256B.48, 256B.50, and 
 72.35  256B.502, the following terms and phrases shall have the meaning 
 72.36  given to them. 
 73.1      Sec. 7.  Minnesota Statutes 1996, section 256B.431, is 
 73.2   amended by adding a subdivision to read: 
 73.3      Subd. 2s.  [RATES FOR A RELOCATED FACILITY.] For a nursing 
 73.4   facility whose construction project was authorized according to 
 73.5   section 144A.073, subdivision 5, paragraph (g), the operating 
 73.6   cost payment rates for the third location shall be determined 
 73.7   based on Minnesota Rules, part 9549.0057.  Subdivision 25, 
 73.8   paragraphs (b), clause (3); and (d), shall not apply until the 
 73.9   second rate year after the settle-up cost report is filed.  
 73.10  Notwithstanding this section, real estate taxes and special 
 73.11  assessments payable by the third location, a 501(c)(3) nonprofit 
 73.12  corporation, shall be included in the payment rates determined 
 73.13  under this subdivision for all subsequent rate years. 
 73.14     Sec. 8.  Minnesota Statutes 1996, section 256B.431, 
 73.15  subdivision 25, is amended to read: 
 73.16     Subd. 25.  [CHANGES TO NURSING FACILITY REIMBURSEMENT 
 73.17  BEGINNING JULY 1, 1995.] The nursing facility reimbursement 
 73.18  changes in paragraphs (a) to (h) shall apply in the sequence 
 73.19  specified to Minnesota Rules, parts 9549.0010 to 9549.0080, and 
 73.20  this section, beginning July 1, 1995. 
 73.21     (a) The eight-cent adjustment to care-related rates in 
 73.22  subdivision 22, paragraph (e), shall no longer apply. 
 73.23     (b) For rate years beginning on or after July 1, 1995, the 
 73.24  commissioner shall limit a nursing facility's allowable 
 73.25  operating per diem for each case mix category for each rate year 
 73.26  as in clauses (1) to (3). 
 73.27     (1) For the rate year beginning July 1, 1995, the 
 73.28  commissioner shall group nursing facilities into two groups, 
 73.29  freestanding and nonfreestanding, within each geographic group, 
 73.30  using their operating cost per diem for the case mix A 
 73.31  classification.  A nonfreestanding nursing facility is a nursing 
 73.32  facility whose other operating cost per diem is subject to the 
 73.33  hospital attached, short length of stay, or the rule 80 limits.  
 73.34  All other nursing facilities shall be considered freestanding 
 73.35  nursing facilities.  The commissioner shall then array all 
 73.36  nursing facilities in each grouping by their allowable case mix 
 74.1   A operating cost per diem.  In calculating a nursing facility's 
 74.2   operating cost per diem for this purpose, the commissioner shall 
 74.3   exclude the raw food cost per diem related to providing special 
 74.4   diets that are based on religious beliefs, as determined in 
 74.5   subdivision 2b, paragraph (h).  For those nursing facilities in 
 74.6   each grouping whose case mix A operating cost per diem: 
 74.7      (i) is at or below the median minus 1.0 standard deviation 
 74.8   of the array, the commissioner shall limit the nursing 
 74.9   facility's allowable operating cost per diem for each case mix 
 74.10  category to the lesser of the prior reporting year's allowable 
 74.11  operating cost per diems plus the inflation factor as 
 74.12  established in paragraph (f), clause (2), increased by six 
 74.13  percentage points, or the current reporting year's corresponding 
 74.14  allowable operating cost per diem; 
 74.15     (ii) is between minus .5 standard deviation and minus 1.0 
 74.16  standard deviation below the median of the array, the 
 74.17  commissioner shall limit the nursing facility's allowable 
 74.18  operating cost per diem for each case mix category to the lesser 
 74.19  of the prior reporting year's allowable operating cost per diems 
 74.20  plus the inflation factor as established in paragraph (f), 
 74.21  clause (2), increased by four percentage points, or the current 
 74.22  reporting year's corresponding allowable operating cost per 
 74.23  diem; or 
 74.24     (iii) is equal to or above minus .5 standard deviation 
 74.25  below the median of the array, the commissioner shall limit the 
 74.26  nursing facility's allowable operating cost per diem for each 
 74.27  case mix category to the lesser of the prior reporting year's 
 74.28  allowable operating cost per diems plus the inflation factor as 
 74.29  established in paragraph (f), clause (2), increased by three 
 74.30  percentage points, or the current reporting year's corresponding 
 74.31  allowable operating cost per diem. 
 74.32     (2) For the rate year beginning on July 1, 1996, the 
 74.33  commissioner shall limit the nursing facility's allowable 
 74.34  operating cost per diem for each case mix category to the lesser 
 74.35  of the prior reporting year's allowable operating cost per diems 
 74.36  plus the inflation factor as established in paragraph (f), 
 75.1   clause (2), increased by one percentage point or the current 
 75.2   reporting year's corresponding allowable operating cost per 
 75.3   diems; and 
 75.4      (3) For rate years beginning on or after July 1, 1997, the 
 75.5   commissioner shall limit the nursing facility's allowable 
 75.6   operating cost per diem for each case mix category to the lesser 
 75.7   of the reporting year prior to the current reporting year's 
 75.8   allowable operating cost per diems plus the inflation factor as 
 75.9   established in paragraph (f), clause (2), or the current 
 75.10  reporting year's corresponding allowable operating cost per 
 75.11  diems. 
 75.12     (c) For rate years beginning on July 1, 1995, the 
 75.13  commissioner shall limit the allowable operating cost per diems 
 75.14  for high cost nursing facilities.  After application of the 
 75.15  limits in paragraph (b) to each nursing facility's operating 
 75.16  cost per diems, the commissioner shall group nursing facilities 
 75.17  into two groups, freestanding or nonfreestanding, within each 
 75.18  geographic group.  A nonfreestanding nursing facility is a 
 75.19  nursing facility whose other operating cost per diems are 
 75.20  subject to hospital attached, short length of stay, or rule 80 
 75.21  limits.  All other nursing facilities shall be considered 
 75.22  freestanding nursing facilities.  The commissioner shall then 
 75.23  array all nursing facilities within each grouping by their 
 75.24  allowable case mix A operating cost per diems.  In calculating a 
 75.25  nursing facility's operating cost per diem for this purpose, the 
 75.26  commissioner shall exclude the raw food cost per diem related to 
 75.27  providing special diets that are based on religious beliefs, as 
 75.28  determined in subdivision 2b, paragraph (h).  For those nursing 
 75.29  facilities in each grouping whose case mix A operating cost per 
 75.30  diem exceeds 1.0 standard deviation above the median, the 
 75.31  commissioner shall reduce their allowable operating cost per 
 75.32  diems by two percent.  For those nursing facilities in each 
 75.33  grouping whose case mix A operating cost per diem exceeds 0.5 
 75.34  standard deviation above the median but is less than or equal to 
 75.35  1.0 standard deviation above the median, the commissioner shall 
 75.36  reduce their allowable operating cost per diems by one percent. 
 76.1      (d) For rate years beginning on or after July 1, 1996, the 
 76.2   commissioner shall limit the allowable operating cost per diems 
 76.3   for high cost nursing facilities.  After application of the 
 76.4   limits in paragraph (b) to each nursing facility's operating 
 76.5   cost per diems, the commissioner shall group nursing facilities 
 76.6   into two groups, freestanding or nonfreestanding, within each 
 76.7   geographic group.  A nonfreestanding nursing facility is a 
 76.8   nursing facility whose other operating cost per diems are 
 76.9   subject to hospital attached, short length of stay, or rule 80 
 76.10  limits.  All other nursing facilities shall be considered 
 76.11  freestanding nursing facilities.  The commissioner shall then 
 76.12  array all nursing facilities within each grouping by their 
 76.13  allowable case mix A operating cost per diems.  In calculating a 
 76.14  nursing facility's operating cost per diem for this purpose, the 
 76.15  commissioner shall exclude the raw food cost per diem related to 
 76.16  providing special diets that are based on religious beliefs, as 
 76.17  determined in subdivision 2b, paragraph (h).  In those nursing 
 76.18  facilities in each grouping whose case mix A operating cost per 
 76.19  diem exceeds 1.0 standard deviation above the median, the 
 76.20  commissioner shall reduce their allowable operating cost per 
 76.21  diems by three percent.  For those nursing facilities in each 
 76.22  grouping whose case mix A operating cost per diem exceeds 0.5 
 76.23  standard deviation above the median but is less than or equal to 
 76.24  1.0 standard deviation above the median, the commissioner shall 
 76.25  reduce their allowable operating cost per diems by two percent. 
 76.26     (e) For rate years beginning on or after July 1, 1995, the 
 76.27  commissioner shall determine a nursing facility's efficiency 
 76.28  incentive by first computing the allowable difference, which is 
 76.29  the lesser of $4.50 or the amount by which the facility's other 
 76.30  operating cost limit exceeds its nonadjusted other operating 
 76.31  cost per diem for that rate year.  The commissioner shall 
 76.32  compute the efficiency incentive by: 
 76.33     (1) subtracting the allowable difference from $4.50 and 
 76.34  dividing the result by $4.50; 
 76.35     (2) multiplying 0.20 by the ratio resulting from clause 
 76.36  (1), and then; 
 77.1      (3) adding 0.50 to the result from clause (2); and 
 77.2      (4) multiplying the result from clause (3) times the 
 77.3   allowable difference. 
 77.4      The nursing facility's efficiency incentive payment shall 
 77.5   be the lesser of $2.25 or the product obtained in clause (4). 
 77.6      (f) For rate years beginning on or after July 1, 1995, the 
 77.7   forecasted price index for a nursing facility's allowable 
 77.8   operating cost per diems shall be determined under clauses (1) 
 77.9   to (3) using the change in the Consumer Price Index-All Items 
 77.10  (United States city average) (CPI-U) or the change in the 
 77.11  Nursing Home Market Basket, both as forecasted by Data Resources 
 77.12  Inc., whichever is applicable.  The commissioner shall use the 
 77.13  indices as forecasted in the fourth quarter of the calendar year 
 77.14  preceding the rate year, subject to subdivision 2l, paragraph 
 77.15  (c).  If, as a result of federal legislative or administrative 
 77.16  action, the methodology used to calculate the Consumer Price 
 77.17  Index-All Items (United States city average) (CPI-U) changes, 
 77.18  the commissioner shall develop a conversion factor or other 
 77.19  methodology to convert the CPI-U index factor that results from 
 77.20  the new methodology to an index factor that approximates, as 
 77.21  closely as possible, the index factor that would have resulted 
 77.22  from application of the original CPI-U methodology prior to any 
 77.23  changes in methodology.  The commissioner shall use the 
 77.24  conversion factor or other methodology to calculate an adjusted 
 77.25  inflation index.  The adjusted inflation index must be used to 
 77.26  calculate payment rates under this section instead of the CPI-U 
 77.27  index specified in paragraph (d).  If the commissioner is 
 77.28  required to develop an adjusted inflation index, the 
 77.29  commissioner shall report to the legislature as part of the next 
 77.30  budget submission the fiscal impact of applying this index. 
 77.31     (1) The CPI-U forecasted index for allowable operating cost 
 77.32  per diems shall be based on the 21-month period from the 
 77.33  midpoint of the nursing facility's reporting year to the 
 77.34  midpoint of the rate year following the reporting year. 
 77.35     (2) The Nursing Home Market Basket forecasted index for 
 77.36  allowable operating costs and per diem limits shall be based on 
 78.1   the 12-month period between the midpoints of the two reporting 
 78.2   years preceding the rate year. 
 78.3      (3) For rate years beginning on or after July 1, 1996, the 
 78.4   forecasted index for operating cost limits referred to in 
 78.5   subdivision 21, paragraph (b), shall be based on the CPI-U for 
 78.6   the 12-month period between the midpoints of the two reporting 
 78.7   years preceding the rate year. 
 78.8      (g) After applying these provisions for the respective rate 
 78.9   years, the commissioner shall index these allowable operating 
 78.10  costs per diems by the inflation factor provided for in 
 78.11  paragraph (f), clause (1), and add the nursing facility's 
 78.12  efficiency incentive as computed in paragraph (e). 
 78.13     (h)(1) A nursing facility licensed for 302 beds on 
 78.14  September 30, 1993, that was approved under the moratorium 
 78.15  exception process in section 144A.073 for a partial replacement, 
 78.16  and completed the replacement project in December 1994, is 
 78.17  exempt from paragraphs (b) to (d) for rate years beginning on or 
 78.18  after July 1, 1995. 
 78.19     (2) For the rate year beginning July 1, 1997, after 
 78.20  computing this nursing facility's payment rate according to 
 78.21  section 256B.434, the commissioner shall make a one-year rate 
 78.22  adjustment of $8.62 to the facility's contract payment rate for 
 78.23  the rate effect of operating cost changes associated with the 
 78.24  facility's 1994 downsizing project. 
 78.25     (3) For rate years beginning on or after July 1, 1997, the 
 78.26  commissioner shall add 35 cents to the facility's base property 
 78.27  related payment rate for the rate effect of reducing its 
 78.28  licensed capacity to 290 beds from 302 beds and shall add 83 
 78.29  cents to the facility's real estate tax and special assessment 
 78.30  payment rate for payments in lieu of real estate taxes.  The 
 78.31  adjustments in this clause shall remain in effect for the 
 78.32  duration of the facility's contract under section 256B.434. 
 78.33     (i) Notwithstanding Laws 1996, chapter 451, article 3, 
 78.34  section 11, paragraph (h), for the rate years beginning on July 
 78.35  1, 1996, July 1, 1997, and July 1, 1998, a nursing facility 
 78.36  licensed for 40 beds effective May 1, 1992, with a subsequent 
 79.1   increase of 20 Medicare/Medicaid certified beds, effective 
 79.2   January 26, 1993, in accordance with an increase in licensure is 
 79.3   exempt from paragraphs (b) to (d). 
 79.4      (j) For the rate year beginning July 1, 1997, the 
 79.5   commissioner shall compute the payment rate for a nursing 
 79.6   facility licensed for 94 beds on September 30, 1996, that 
 79.7   applied in October 1993 for approval of a total replacement 
 79.8   under the moratorium exception process in section 144A.073, and 
 79.9   completed the approved replacement in June 1995, with an 
 79.10  aggregate spend-up limit under paragraph (b) or Laws 1996, 
 79.11  chapter 451, article 3, section 11, increased by $3.98, and 
 79.12  after computing the facility's payment rate according to section 
 79.13  256B.431, the commissioner shall make a one year positive rate 
 79.14  adjustment of $3.19 for operating costs related to the newly 
 79.15  constructed total replacement, without application of paragraphs 
 79.16  (b) to (d) or Laws 1996, chapter 451, article 3, section 11.  
 79.17  The facility's per diems, before the $3.19 adjustment, shall be 
 79.18  used as the prior reporting year's allowable operating cost per 
 79.19  diems for payment rate calculation for the rate year beginning 
 79.20  July 1, 1998.  
 79.21     (k) For the purpose of applying the limit stated in 
 79.22  paragraph (b), clause (3), a nursing facility in Kandiyohi 
 79.23  county licensed for 86 beds that was granted hospital-attached 
 79.24  status on December 1, 1994, shall have the prior year's 
 79.25  allowable care-related per diems increased by $3.207 and the 
 79.26  prior year's other operating cost per diems increased by $4.777 
 79.27  before adding the inflation in paragraph (f), clause (2), for 
 79.28  the rate year beginning on July 1, 1997. 
 79.29     (l) For the purpose of applying the limit stated in 
 79.30  paragraph (b), clause (3), a 117 bed nursing facility located in 
 79.31  Pine county shall have the prior year's allowable operating cost 
 79.32  per diem payment rate increased by $1.50 before adding the 
 79.33  inflation in paragraph (f), clause (2), for the rate year 
 79.34  beginning on July 1, 1997. 
 79.35     Sec. 9.  Minnesota Statutes 1996, section 256B.431, is 
 79.36  amended by adding a subdivision to read: 
 80.1      Subd. 26.  [CHANGES TO NURSING FACILITY REIMBURSEMENT 
 80.2   BEGINNING JULY 1, 1997.] The nursing facility reimbursement 
 80.3   changes in paragraphs (a) to (f) shall apply in the sequence 
 80.4   specified to Minnesota Rules, parts 9549.0010 to 9549.0080, and 
 80.5   this section, beginning July 1, 1997. 
 80.6      (a) For rate years beginning on or after July 1, 1997, the 
 80.7   commissioner shall limit a nursing facility's allowable 
 80.8   operating per diem for each case mix category for each rate year 
 80.9   as follows: 
 80.10     (1) Notwithstanding Laws 1996, chapter 451, article 3, 
 80.11  section 11, paragraph (h), for purposes of computing the 
 80.12  spend-up limits for the rate year beginning July 1, 1997, the 
 80.13  nursing facility's prior cost report year's allowable operating 
 80.14  cost base shall be its allowed operating costs used to set the 
 80.15  payment rates paid for the rate year beginning July 1, 1996. 
 80.16     (2) The commissioner shall group nursing facilities into 
 80.17  two groups, freestanding and nonfreestanding, within each 
 80.18  geographic group, using their operating cost per diem for the 
 80.19  case mix A classification.  A nonfreestanding nursing facility 
 80.20  is a nursing facility whose other operating cost per diem is 
 80.21  subject to the hospital attached, short length of stay, or the 
 80.22  rule 80 limits.  All other nursing facilities shall be 
 80.23  considered freestanding nursing facilities.  The commissioner 
 80.24  shall then array all nursing facilities in each grouping by 
 80.25  their allowable case mix A operating cost per diem.  In 
 80.26  calculating a nursing facility's operating cost per diem for 
 80.27  this purpose, the commissioner shall exclude the raw food cost 
 80.28  per diem related to providing special diets that are based on 
 80.29  religious beliefs, as determined in subdivision 2b, paragraph 
 80.30  (h).  For those nursing facilities in each grouping whose case 
 80.31  mix A operating cost per diem: 
 80.32     (i) is at or below the median of the array, the 
 80.33  commissioner shall limit the nursing facility's allowable 
 80.34  operating cost per diem for each case mix category to the lesser 
 80.35  of the prior reporting year's allowable operating cost per diems 
 80.36  plus the inflation factor as established in paragraph (d), 
 81.1   clause (2), increased by two percentage points, or the current 
 81.2   reporting year's corresponding allowable operating cost per 
 81.3   diem; or 
 81.4      (ii) is above the median of the array, the commissioner 
 81.5   shall limit the nursing facility's allowable operating cost per 
 81.6   diem for each case mix category to the lesser of the prior 
 81.7   reporting year's allowable operating cost per diems plus the 
 81.8   inflation factor as established in paragraph (d), clause (2), 
 81.9   increased by one percentage point, or the current reporting 
 81.10  year's corresponding allowable operating cost per diem. 
 81.11     (b) For rate years beginning on July 1, 1997, the 
 81.12  commissioner shall limit the allowable operating cost per diems 
 81.13  for high cost nursing facilities.  After application of the 
 81.14  limits in paragraph (a) to each nursing facility's operating 
 81.15  cost per diems, the commissioner shall group nursing facilities 
 81.16  into two groups, freestanding or nonfreestanding, within each 
 81.17  geographic group.  A nonfreestanding nursing facility is a 
 81.18  nursing facility whose other operating cost per diems are 
 81.19  subject to hospital attached, short length of stay, or rule 80 
 81.20  limits.  All other nursing facilities shall be considered 
 81.21  freestanding nursing facilities.  The commissioner shall then 
 81.22  array all nursing facilities within each grouping by their 
 81.23  allowable case mix A operating cost per diems.  In calculating a 
 81.24  nursing facility's operating cost per diem for this purpose, the 
 81.25  commissioner shall exclude the raw food cost per diem related to 
 81.26  providing special diets that are based on religious beliefs, as 
 81.27  determined in subdivision 2b, paragraph (h).  For those nursing 
 81.28  facilities in each grouping whose case mix A operating cost per 
 81.29  diem exceeds 1.0 standard deviation above the median, the 
 81.30  commissioner shall reduce their allowable operating cost per 
 81.31  diems by three percent.  For those nursing facilities in each 
 81.32  grouping whose case mix A operating cost per diem exceeds 0.5 
 81.33  standard deviation above the median but is less than or equal to 
 81.34  1.0 standard deviation above the median, the commissioner shall 
 81.35  reduce their allowable operating cost per diems by two percent.  
 81.36  However, in no case shall a nursing facility's operating cost 
 82.1   per diems be reduced below its grouping's limit established at 
 82.2   0.5 standard deviations above the median. 
 82.3      (c) For rate years beginning on or after July 1, 1997, the 
 82.4   commissioner shall determine a nursing facility's efficiency 
 82.5   incentive by first computing the allowable difference, which is 
 82.6   the lesser of $4.50 or the amount by which the facility's other 
 82.7   operating cost limit exceeds its nonadjusted other operating 
 82.8   cost per diem for that rate year.  In determining the amount of 
 82.9   the efficiency incentive for hospital attached nursing 
 82.10  facilities, the commissioner must use the other operating cost 
 82.11  limit applicable to the freestanding nursing facilities in their 
 82.12  same geographic group.  The commissioner shall compute the 
 82.13  efficiency incentive by: 
 82.14     (1) subtracting the allowable difference from $4.50 and 
 82.15  dividing the result by $4.50; 
 82.16     (2) multiplying 0.20 by the ratio resulting from clause 
 82.17  (1), and then; 
 82.18     (3) adding 0.50 to the result from clause (2); and 
 82.19     (4) multiplying the result from clause (3) times the 
 82.20  allowable difference. 
 82.21     The nursing facility's efficiency incentive payment shall 
 82.22  be the lesser of $2.25 or the product obtained in clause (4). 
 82.23     (d) For rate years beginning on or after July 1, 1997, the 
 82.24  forecasted price index for a nursing facility's allowable 
 82.25  operating cost per diems shall be determined under clauses (1) 
 82.26  and (2) using the change in the Consumer Price Index-All Items 
 82.27  (United States city average) (CPI-U) as forecasted by Data 
 82.28  Resources Inc.  The commissioner shall use the indices as 
 82.29  forecasted in the fourth quarter of the calendar year preceding 
 82.30  the rate year, subject to subdivision 2l, paragraph (c).  
 82.31     (1) The CPI-U forecasted index for allowable operating cost 
 82.32  per diems shall be based on the 21-month period from the 
 82.33  midpoint of the nursing facility's reporting year to the 
 82.34  midpoint of the rate year following the reporting year. 
 82.35     (2) For rate years beginning on or after July 1, 1997, the 
 82.36  forecasted index for operating cost limits referred to in 
 83.1   subdivision 21, paragraph (b), shall be based on the CPI-U for 
 83.2   the 12-month period between the midpoints of the two reporting 
 83.3   years preceding the rate year. 
 83.4      (e) After applying these provisions for the respective rate 
 83.5   years, the commissioner shall index these allowable operating 
 83.6   costs per diems by the inflation factor provided for in 
 83.7   paragraph (d), clause (1), and add the nursing facility's 
 83.8   efficiency incentive as computed in paragraph (c). 
 83.9      (f) Notwithstanding Laws 1996, chapter 451, article 3, 
 83.10  section 11, paragraph (h), for the rate years beginning on July 
 83.11  1, 1997, and July 1, 1998, a nursing facility licensed for 40 
 83.12  beds effective May 1, 1992, with a subsequent increase of 20 
 83.13  Medicare/Medicaid certified beds, effective January 26, 1993, in 
 83.14  accordance with an increase in licensure is exempt from 
 83.15  paragraphs (a) and (b). 
 83.16     Sec. 10.  Minnesota Statutes 1996, section 256B.434, 
 83.17  subdivision 3, is amended to read: 
 83.18     Subd. 3.  [DURATION AND TERMINATION OF CONTRACTS.] (a) 
 83.19  Subject to available resources, the commissioner may begin to 
 83.20  execute contracts with nursing facilities November 1, 1995. 
 83.21     (b) All contracts entered into under this section are for a 
 83.22  term of four years one year.  Either party may terminate a 
 83.23  contract effective July 1 of any year by providing written 
 83.24  notice to the other party no later than April 1 of that year at 
 83.25  any time without cause by providing 30 calendar days advance 
 83.26  written notice to the other party.  The decision to terminate a 
 83.27  contract is not appealable.  If neither party provides written 
 83.28  notice of termination by April 1, the contract is automatically 
 83.29  renewed for the next rate year the contract shall be 
 83.30  renegotiated for additional one-year terms, for up to a total of 
 83.31  four consecutive one-year terms.  The provisions of the contract 
 83.32  shall be renegotiated annually by the parties prior to the 
 83.33  expiration date of the contract.  The parties may voluntarily 
 83.34  renegotiate the terms of the contract at any time by mutual 
 83.35  agreement. 
 83.36     (c) If a nursing facility fails to comply with the terms of 
 84.1   a contract, the commissioner shall provide reasonable notice 
 84.2   regarding the breach of contract and a reasonable opportunity 
 84.3   for the facility to come into compliance.  If the facility fails 
 84.4   to come into compliance or to remain in compliance, the 
 84.5   commissioner may terminate the contract.  If a contract is 
 84.6   terminated, the contract payment remains in effect for the 
 84.7   remainder of the rate year in which the contract was terminated, 
 84.8   but in all other respects the provisions of this section do not 
 84.9   apply to that facility effective the date the contract is 
 84.10  terminated.  The contract shall contain a provision governing 
 84.11  the transition back to the cost-based reimbursement system 
 84.12  established under section 256B.431, subdivision 25, and 
 84.13  Minnesota Rules, parts 9549.0010 to 9549.0080.  A contract 
 84.14  entered into under this section may be amended by mutual 
 84.15  agreement of the parties. 
 84.16     Sec. 11.  [256B.435] [NURSING FACILITY CONVERSION 
 84.17  DEMONSTRATION PROJECT.] 
 84.18     Subdivision 1.  [DEMONSTRATION PROJECT.] The commissioner 
 84.19  shall design and implement a process to start July 1, 1998, 
 84.20  which will decrease the number of Minnesota nursing facilities 
 84.21  participating in the medical assistance program by June 30, 
 84.22  2002.  That process must include voluntary nursing facility 
 84.23  closures and, as necessary, selective medical assistance 
 84.24  decertification of nursing facilities to achieve the goal of 
 84.25  approximately 20 fewer nursing facilities.  The total number of 
 84.26  licensed nursing home and boarding care home beds participating 
 84.27  in the medical assistance program upon completion of the project 
 84.28  must decrease by at least 2000 beds.  Nursing facilities subject 
 84.29  to this project include those with payment rates determined 
 84.30  under sections 256B.431, 256B.434, and 256B.48, subdivision 1a. 
 84.31     Subd. 2.  [VOLUNTARY NURSING FACILITY CLOSURES.] (a) For 
 84.32  the rate years beginning on or after July 1, 1998, a nursing 
 84.33  facility may elect to cease operations as a nursing home or 
 84.34  boarding care facility, and apply for technical assistance and 
 84.35  incentive payments under this subdivision.  The commissioner 
 84.36  shall issue a request for proposal (RFP) by October 1, 1997, 
 85.1   outlining the process and criteria for nursing facilities 
 85.2   interested in applying to voluntarily close.  A nursing facility 
 85.3   seeking to transfer some of its nursing facility beds to another 
 85.4   location may be eligible for the incentives under this 
 85.5   subdivision provided that:  
 85.6      (1) the number of beds closed is at least 70 percent of its 
 85.7   capacity; 
 85.8      (2) the estimated cost to medical assistance of the 
 85.9   transferred beds, as determined by the commissioner, is at least 
 85.10  budget neutral; and 
 85.11     (3) other total closure proposals are given higher priority.
 85.12     (b) The commissioner shall make available technical support 
 85.13  to facilitate a nursing facility seeking voluntary closure under 
 85.14  this section.  Department technical support shall include 
 85.15  assistance in:  general transition planning; coordination of 
 85.16  discharge planning and resident relocation efforts in 
 85.17  coordination with the affected county and nursing facility; 
 85.18  identification of alternative community resources and placements 
 85.19  for displaced facility residents; assessing potential alternate 
 85.20  uses of the facility's capital assets; and identifying possible 
 85.21  financing for facility renovations consistent with identified 
 85.22  alternative uses. 
 85.23     (c) The commissioner and the nursing facility may negotiate 
 85.24  a closure incentive payment of up to $1,000 per bed for a 
 85.25  nursing facility which agrees to delicense all or substantially 
 85.26  all of its licensed nursing home and boarding care home beds.  
 85.27  The nursing facility's proposal must include a plan for 
 85.28  cost-effective alternative placement of its residents.  The 
 85.29  provider's proposal must also indicate the intended purpose of 
 85.30  the incentive payment.  If the intended use of the incentive 
 85.31  payment is for facility renovations that will result in another 
 85.32  public use or for the promotion of another community 
 85.33  alternative, the commissioner must give higher priority to those 
 85.34  proposals.  Once established, the commissioner's determination 
 85.35  and incentive payment are not appealable.  The commissioner must 
 85.36  not exceed the biennial appropriation for this purpose.  Nothing 
 86.1   shall preclude a nursing facility from electing to voluntarily 
 86.2   close without benefit of the incentive payments and technical 
 86.3   support and assistance set forth in this subdivision. 
 86.4      Subd. 3.  [SELECTIVE DECERTIFICATION OF NURSING 
 86.5   FACILITIES.] (a) Beginning July 1, 1999, the commissioner shall 
 86.6   implement a process to reduce the number of nursing facility 
 86.7   beds through selective decertification in order to achieve the 
 86.8   goal of approximately 20 fewer nursing facilities participating 
 86.9   in the medical assistance program by June 30, 2002.  The 
 86.10  mechanism to be utilized to implement the selective 
 86.11  decertification process will be by nonrenewal of provider 
 86.12  agreements.  Notwithstanding section 256B.04, subdivisions 4 and 
 86.13  12, and Minnesota Rules, part 9505.0195, the commissioner may 
 86.14  terminate provider agreements.  The commissioner, with 
 86.15  cooperation from the commissioner of health, shall develop any 
 86.16  necessary federal waiver requests to permit a selective medical 
 86.17  assistance decertification process.  The commissioners should 
 86.18  submit any needed federal waiver requests by February 1, 1998. 
 86.19     (b) In developing the waiver and decertification process, 
 86.20  the commissioner shall develop criteria that will be used to 
 86.21  define which nursing facilities to decertify.  The commissioner 
 86.22  shall consider using the following factors in developing 
 86.23  criteria:  
 86.24     (1) availability and capacity of cost-effective community 
 86.25  alternatives; 
 86.26     (2) future demographics and bed supply for county; 
 86.27     (3) high proportion of case mix A residents; 
 86.28     (4) low case mix score; 
 86.29     (5) high case mix A operating cost per diem; 
 86.30     (6) type of licensure; 
 86.31     (7) percent of total and medical assistance occupancy; 
 86.32     (8) a measure of care quality; and 
 86.33     (9) any other factor deemed relevant by the commissioner.  
 86.34     (c) In determining the nursing facility decertification 
 86.35  criteria to be used, the commissioner shall establish an 
 86.36  advisory committee.  The advisory committee's composition shall 
 87.1   include consumers or their representatives, counties, 
 87.2   legislators, and providers or their representatives, as well as 
 87.3   representatives of the departments of health and human services. 
 87.4      (d) The commissioner shall recommend to the 1999 
 87.5   legislature adoption of a process and criteria for determining 
 87.6   the schedule by which nursing facilities will be decertified 
 87.7   beginning in fiscal year 2000 under this subdivision. 
 87.8      Subd. 4.  [RULEMAKING EXEMPTION.] The commissioner is 
 87.9   exempt from all rulemaking requirements in chapter 14 for the 
 87.10  demonstration project under this section. 
 87.11     Subd. 5.  [LEGISLATIVE REPORTS.] The commissioner shall 
 87.12  report annually to the legislature every February, from 1999 to 
 87.13  2003, on the status and progress of the demonstration project 
 87.14  and shall make recommendations as needed to improve the 
 87.15  project's effectiveness. 
 87.16     Sec. 12.  Minnesota Statutes 1996, section 256I.05, is 
 87.17  amended by adding a subdivision to read: 
 87.18     Subd. 1d.  [SUPPLEMENTARY SERVICE RATES FOR CERTAIN 
 87.19  FACILITIES SERVING PERSONS WITH MENTAL ILLNESS OR CHEMICAL 
 87.20  DEPENDENCY.] Notwithstanding the provisions of subdivisions 1a 
 87.21  and 1c for the fiscal year ending June 30, 1998, a county agency 
 87.22  may negotiate a supplementary service rate in addition to the 
 87.23  board and lodging rate for facilities licensed and registered by 
 87.24  the Minnesota department of health under section 157.17 prior to 
 87.25  December 31, 1994, if the facility meets the following criteria: 
 87.26     (1) at least 75 percent of the residents have a primary 
 87.27  diagnosis of mental illness, chemical dependency, or both, and 
 87.28  have related special needs; 
 87.29     (2) the facility provides 24-hour, on-site, year-round 
 87.30  supportive services by qualified staff capable of intervention 
 87.31  in a crisis of persons with late-state inebriety or mental 
 87.32  illness who are vulnerable to abuse or neglect; 
 87.33     (3) the services at the facility include, but are not 
 87.34  limited to: 
 87.35     (i) secure central storage of medication; 
 87.36     (ii) reminders and monitoring of medication for 
 88.1   self-administration; 
 88.2      (iii) support for developing an individual medical and 
 88.3   social service plan, updating the plan, and monitoring 
 88.4   compliance with the plan; and 
 88.5      (iv) assistance with setting up meetings, appointments, and 
 88.6   transportation to access medical, chemical health, and mental 
 88.7   health service providers; 
 88.8      (4) each resident has a documented need for at least one of 
 88.9   the services provided; 
 88.10     (5) each resident has been offered an opportunity to apply 
 88.11  for admission to a licensed residential treatment program for 
 88.12  mental illness, chemical dependency, or both, have refused that 
 88.13  offer, and the offer and their refusal has been documented to 
 88.14  writing; and 
 88.15     (6) the residents are not eligible for home and 
 88.16  community-based services waivers because of their unique need 
 88.17  for community support. 
 88.18     After the increase, the total supplementary service rate 
 88.19  must not exceed the statewide rate limit for residential care 
 88.20  services in effect January 1, 1997, for the community 
 88.21  alternatives for disabled individuals waivers services program 
 88.22  for individuals with a case mix "A" classification. 
 88.23     Sec. 13.  Laws 1997, chapter 7, article 1, section 75, is 
 88.24  amended to read: 
 88.25     Sec. 75.  [REPEALER; SECTION 144A.61, SUBDIVISION 6 NOTE.] 
 88.26     Laws 1989, chapter 282, article 3, section 28, subdivision 
 88.27  6, is repealed. 
 88.28     Sec. 14.  [EFFECTIVE DATE.] 
 88.29     Section 8 is effective the day following final enactment. 
 88.30                             ARTICLE 4
 88.31                            HEALTH CARE
 88.32     Section 1.  Minnesota Statutes 1996, section 62D.04, 
 88.33  subdivision 5, is amended to read: 
 88.34     Subd. 5.  [PARTICIPATION; GOVERNMENT PROGRAMS.] Health 
 88.35  maintenance organizations shall, as a condition of receiving and 
 88.36  retaining a certificate of authority, participate in the medical 
 89.1   assistance, general assistance medical care, and MinnesotaCare 
 89.2   programs.  A health maintenance organization is required to 
 89.3   submit proposals in good faith that meet the requirements of the 
 89.4   request for proposal provided that the requirements can be 
 89.5   reasonably met by a health maintenance organization to serve 
 89.6   individuals eligible for the above programs in a geographic 
 89.7   region of the state if, at the time of publication of a request 
 89.8   for proposal, the percentage of recipients in the public 
 89.9   programs in the region who are enrolled in the health 
 89.10  maintenance organization is less than the health maintenance 
 89.11  organization's percentage of the total number of individuals 
 89.12  enrolled in health maintenance organizations in the same 
 89.13  region.  Geographic regions shall be defined by the commissioner 
 89.14  of human services in the request for proposals. 
 89.15     Sec. 2.  Minnesota Statutes 1996, section 62N.10, 
 89.16  subdivision 4, is amended to read: 
 89.17     Subd. 4.  [PARTICIPATION; GOVERNMENT PROGRAMS.] Integrated 
 89.18  service networks shall, as a condition of licensure, participate 
 89.19  in the medical assistance, general assistance medical care, and 
 89.20  MinnesotaCare programs.  An integrated service network is 
 89.21  required to submit proposals in good faith that meet the 
 89.22  requirements of the request for proposals provided that the 
 89.23  requirements can be reasonably met by an integrated service 
 89.24  network to serve persons who are eligible for the above programs 
 89.25  if, at the time of publication of a request for proposal, the 
 89.26  percentage of recipients in the public programs in the region 
 89.27  who are enrolled in the integrated service network is less than 
 89.28  the integrated service network's percentage of the total number 
 89.29  of individuals enrolled in integrated service networks in the 
 89.30  same region.  Geographic regions shall be defined by the 
 89.31  commissioner of human services in the request for proposals.  
 89.32     Sec. 3.  Minnesota Statutes 1996, section 144.0721, 
 89.33  subdivision 3, is amended to read: 
 89.34     Subd. 3.  [LEVEL OF CARE CRITERIA; MODIFICATIONS.] The 
 89.35  commissioner shall seek appropriate federal waivers to implement 
 89.36  this subdivision.  Notwithstanding any laws or rules to the 
 90.1   contrary, effective July 1, 1996 1997, Minnesota's level of care 
 90.2   criteria for admission of any person to a nursing facility 
 90.3   licensed under chapter 144A, or a boarding care home licensed 
 90.4   under sections 144.50 to 144.56, are modified as follows: 
 90.5      (1) the resident reimbursement classifications and 
 90.6   terminology established by rule under sections 256B.41 to 
 90.7   256B.48 are the basis for applying the level of care criteria 
 90.8   changes; 
 90.9      (2) an applicant to a certified nursing facility or 
 90.10  certified boarding care home who is dependent in zero, one, or 
 90.11  two case mix activities of daily living, is classified as a case 
 90.12  mix A, and is independent in orientation and self-preservation, 
 90.13  is reclassified as a high function class A person and is not 
 90.14  eligible for admission to Minnesota certified nursing facilities 
 90.15  or certified boarding care homes; 
 90.16     (3) applicants in clause (2) who are dependent in one or 
 90.17  two case mix activities of daily living, who are eligible for 
 90.18  assistance as determined under sections 256B.055 and 256B.056 or 
 90.19  meet eligibility criteria for section 256B.0913 are eligible for 
 90.20  a service allowance under section 256B.0913, subdivision 15, and 
 90.21  are not eligible for services under sections 256B.0913, 
 90.22  subdivisions 1 to 14, and 256B.0915.  Applicants in clause (2) 
 90.23  shall have the option of receiving personal care assistant and 
 90.24  home health aide services under section 256B.0625, if otherwise 
 90.25  eligible, or of receiving the service allowance option, but not 
 90.26  both.  Applicants in clause (2) shall have the option of 
 90.27  residing in community settings under sections 256I.01 to 
 90.28  256I.06, if otherwise eligible, or receiving the services 
 90.29  allowance option under section 256B.0913, subdivision 15, but 
 90.30  not both; 
 90.31     (4) residents of a certified nursing facility or certified 
 90.32  boarding care home who were admitted before July 1, 1996 1997, 
 90.33  or individuals receiving services under section 256B.0913, 
 90.34  subdivisions 1 to 14, or 256B.0915, before July 1, 1996 1997, 
 90.35  are not subject to the new level of care criteria unless the 
 90.36  resident is discharged home or to another service setting other 
 91.1   than a certified nursing facility or certified boarding care 
 91.2   home and applies for admission to a certified nursing facility 
 91.3   or certified boarding care home after June 30, 1996 1997; 
 91.4      (5) the local screening teams under section 256B.0911 shall 
 91.5   make preliminary determinations concerning may determine the 
 91.6   existence of extraordinary circumstances which render 
 91.7   nonadmission to a certified nursing or certified boarding care 
 91.8   home a serious threat to the health and safety of applicants in 
 91.9   clause (2) and may authorize an admission for a short-term stay 
 91.10  at to a certified nursing facility or certified boarding care 
 91.11  home in accordance with a treatment and discharge plan for up to 
 91.12  30 days per year; and 
 91.13     (6) an individual deemed ineligible for admission to 
 91.14  Minnesota certified nursing facilities is entitled to an appeal 
 91.15  under section 256.045, subdivision 3. 
 91.16     If the commissioner determines upon appeal that an 
 91.17  applicant in clause (2) presents extraordinary circumstances 
 91.18  including but not limited to the absence or inaccessibility of 
 91.19  suitable alternatives, contravening family circumstances, and or 
 91.20  protective service issues, the applicant may be eligible for 
 91.21  admission to Minnesota certified nursing facilities or certified 
 91.22  boarding care homes. 
 91.23     Sec. 4.  Minnesota Statutes 1996, section 254B.02, 
 91.24  subdivision 1, is amended to read: 
 91.25     Subdivision 1.  [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 
 91.26  The chemical dependency funds appropriated for allocation shall 
 91.27  be placed in a special revenue account.  For the fiscal year 
 91.28  beginning July 1, 1987, funds shall be transferred to operate 
 91.29  the vendor payment, invoice processing, and collections system 
 91.30  for one year.  The commissioner shall annually transfer funds 
 91.31  from the chemical dependency fund to pay for operation of the 
 91.32  drug and alcohol abuse normative evaluation system and to pay 
 91.33  for all costs incurred by adding two positions for licensing of 
 91.34  chemical dependency treatment and rehabilitation programs 
 91.35  located in hospitals for which funds are not otherwise 
 91.36  appropriated.  For each year of the biennium ending June 30, 
 92.1   1999, the commissioner shall allocate funds to the American 
 92.2   Indian chemical dependency tribal account for treatment of 
 92.3   American Indians by eligible vendors under section 254B.05, 
 92.4   equal to the amount allocated in fiscal year 1997.  The 
 92.5   commissioner shall annually divide the money available in the 
 92.6   chemical dependency fund that is not held in reserve by counties 
 92.7   from a previous allocation, or allocated to the American Indian 
 92.8   chemical dependency tribal account.  Twelve Six percent of the 
 92.9   remaining money must be reserved for the nonreservation American 
 92.10  Indian chemical dependency allocation for treatment of American 
 92.11  Indians by eligible vendors under section 254B.05, subdivision 
 92.12  1.  The remainder of the money must be allocated among the 
 92.13  counties according to the following formula, using state 
 92.14  demographer data and other data sources determined by the 
 92.15  commissioner: 
 92.16     (a) For purposes of this formula, American Indians and 
 92.17  children under age 14 are subtracted from the population of each 
 92.18  county to determine the restricted population. 
 92.19     (b) The amount of chemical dependency fund expenditures for 
 92.20  entitled persons for services not covered by prepaid plans 
 92.21  governed by section 256B.69 in the previous year is divided by 
 92.22  the amount of chemical dependency fund expenditures for entitled 
 92.23  persons for all services to determine the proportion of exempt 
 92.24  service expenditures for each county. 
 92.25     (c) The prepaid plan months of eligibility is multiplied by 
 92.26  the proportion of exempt service expenditures to determine the 
 92.27  adjusted prepaid plan months of eligibility for each county. 
 92.28     (d) The adjusted prepaid plan months of eligibility is 
 92.29  added to the number of restricted population fee for service 
 92.30  months of eligibility for aid to families with dependent 
 92.31  children, general assistance, and medical assistance and divided 
 92.32  by the county restricted population to determine county per 
 92.33  capita months of covered service eligibility. 
 92.34     (e) The number of adjusted prepaid plan months of 
 92.35  eligibility for the state is added to the number of fee for 
 92.36  service months of eligibility for aid to families with dependent 
 93.1   children, general assistance, and medical assistance for the 
 93.2   state restricted population and divided by the state restricted 
 93.3   population to determine state per capita months of covered 
 93.4   service eligibility. 
 93.5      (f) The county per capita months of covered service 
 93.6   eligibility is divided by the state per capita months of covered 
 93.7   service eligibility to determine the county welfare caseload 
 93.8   factor. 
 93.9      (g) The median married couple income for the most recent 
 93.10  three-year period available for the state is divided by the 
 93.11  median married couple income for the same period for each county 
 93.12  to determine the income factor for each county. 
 93.13     (h) The county restricted population is multiplied by the 
 93.14  sum of the county welfare caseload factor and the county income 
 93.15  factor to determine the adjusted population. 
 93.16     (i) $15,000 shall be allocated to each county.  
 93.17     (j) The remaining funds shall be allocated proportional to 
 93.18  the county adjusted population. 
 93.19     Sec. 5.  Minnesota Statutes 1996, section 254B.09, 
 93.20  subdivision 4, is amended to read: 
 93.21     Subd. 4.  [TRIBAL ALLOCATION.] Forty-two and one-half 
 93.22  Eighty-five percent of the American Indian chemical dependency 
 93.23  tribal account must be allocated to the federally recognized 
 93.24  American Indian tribal governing bodies that have entered into 
 93.25  an agreement under subdivision 2 as follows:  $10,000 must be 
 93.26  allocated to each governing body and the remainder must be 
 93.27  allocated in direct proportion to the population of the 
 93.28  reservation according to the most recently available estimates 
 93.29  from the federal Bureau of Indian Affairs.  When a tribal 
 93.30  governing body has not entered into an agreement with the 
 93.31  commissioner under subdivision 2, the county may use funds 
 93.32  allocated to the reservation to pay for chemical dependency 
 93.33  services for a current resident of the county and of the 
 93.34  reservation. 
 93.35     Sec. 6.  Minnesota Statutes 1996, section 254B.09, 
 93.36  subdivision 5, is amended to read: 
 94.1      Subd. 5.  [TRIBAL RESERVE ACCOUNT.] The commissioner shall 
 94.2   reserve 7.5 15 percent of the American Indian chemical 
 94.3   dependency tribal account.  The reserve must be allocated to 
 94.4   those tribal units that have used all money allocated under 
 94.5   subdivision 4 according to agreements made under subdivision 2 
 94.6   and to counties submitting invoices for American Indians under 
 94.7   subdivision 1 when all money allocated under subdivision 4 has 
 94.8   been used.  An American Indian tribal governing body or a county 
 94.9   submitting invoices under subdivision 1 may receive not more 
 94.10  than 30 percent of the reserve account in a year.  The 
 94.11  commissioner may refuse to make reserve payments for persons not 
 94.12  eligible under section 254B.04, subdivision 1, if the tribal 
 94.13  governing body responsible for treatment placement has exhausted 
 94.14  its allocation.  Money must be allocated as invoices are 
 94.15  received. 
 94.16     Sec. 7.  Minnesota Statutes 1996, section 254B.09, 
 94.17  subdivision 7, is amended to read: 
 94.18     Subd. 7.  [NONRESERVATION INDIAN ACCOUNT.] Fifty percent of 
 94.19  The nonreservation American Indian chemical dependency 
 94.20  allocation must be held in reserve by the commissioner in an 
 94.21  account for treatment of Indians not residing on lands of a 
 94.22  reservation receiving money under subdivision 4.  This money 
 94.23  must be used to pay for services certified by county invoice to 
 94.24  have been provided to an American Indian eligible recipient.  
 94.25  Money allocated under this subdivision may be used for payments 
 94.26  on behalf of American Indian county residents only if, in 
 94.27  addition to other placement standards, the county certifies that 
 94.28  the placement was appropriate to the cultural orientation of the 
 94.29  client.  Any funds for treatment of nonreservation Indians 
 94.30  remaining at the end of a fiscal year shall be reallocated under 
 94.31  section 254B.02. 
 94.32     Sec. 8.  Minnesota Statutes 1996, section 256.045, 
 94.33  subdivision 3, is amended to read: 
 94.34     Subd. 3.  [STATE AGENCY HEARINGS.] (a) State agency 
 94.35  hearings are available for the following:  (1) any person 
 94.36  applying for, receiving or having received public assistance or 
 95.1   a program of social services granted by the state agency or a 
 95.2   county agency under sections 252.32, 256.031 to 256.036, and 
 95.3   256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the 
 95.4   federal Food Stamp Act whose application for assistance is 
 95.5   denied, not acted upon with reasonable promptness, or whose 
 95.6   assistance is suspended, reduced, terminated, or claimed to have 
 95.7   been incorrectly paid; (2) any patient or relative aggrieved by 
 95.8   an order of the commissioner under section 252.27; (3) a party 
 95.9   aggrieved by a ruling of a prepaid health plan; (4) any 
 95.10  individual or facility determined by a lead agency to have 
 95.11  maltreated a vulnerable adult under section 626.557 after they 
 95.12  have exercised their right to administrative reconsideration 
 95.13  under section 626.557; (5) any person whose claim for foster 
 95.14  care payment pursuant to a placement of the child resulting from 
 95.15  a child protection assessment under section 626.556 is denied or 
 95.16  not acted upon with reasonable promptness, regardless of funding 
 95.17  source; (6) any person to whom a right of appeal pursuant to 
 95.18  this section is given by other provision of law; or (7) an 
 95.19  applicant aggrieved by an adverse decision to an application for 
 95.20  a hardship waiver under section 256B.15.  The failure to 
 95.21  exercise the right to an administrative reconsideration shall 
 95.22  not be a bar to a hearing under this section if federal law 
 95.23  provides an individual the right to a hearing to dispute a 
 95.24  finding of maltreatment.  Individuals and organizations 
 95.25  specified in this section may contest the specified action, 
 95.26  decision, or final disposition before the state agency by 
 95.27  submitting a written request for a hearing to the state agency 
 95.28  within 30 days after receiving written notice of the action, 
 95.29  decision, or final disposition, or within 90 days of such 
 95.30  written notice if the applicant, recipient, patient, or relative 
 95.31  shows good cause why the request was not submitted within the 
 95.32  30-day time limit. 
 95.33     The hearing for an individual or facility under clause (4) 
 95.34  is the only administrative appeal to the final lead agency 
 95.35  disposition specifically, including a challenge to the accuracy 
 95.36  and completeness of data under section 13.04.  Hearings 
 96.1   requested under clause (4) apply only to incidents of 
 96.2   maltreatment that occur on or after October 1, 1995.  Hearings 
 96.3   requested by nursing assistants in nursing homes alleged to have 
 96.4   maltreated a resident prior to October 1, 1995, shall be held as 
 96.5   a contested case proceeding under the provisions of chapter 14. 
 96.6      For purposes of this section, bargaining unit grievance 
 96.7   procedures are not an administrative appeal. 
 96.8      The scope of hearings involving claims to foster care 
 96.9   payments under clause (5) shall be limited to the issue of 
 96.10  whether the county is legally responsible for a child's 
 96.11  placement under court order or voluntary placement agreement 
 96.12  and, if so, the correct amount of foster care payment to be made 
 96.13  on the child's behalf and shall not include review of the 
 96.14  propriety of the county's child protection determination or 
 96.15  child placement decision. 
 96.16     (b) Except for a prepaid health plan, A vendor of medical 
 96.17  care as defined in section 256B.02, subdivision 7, or a vendor 
 96.18  under contract with a county agency to provide social services 
 96.19  under section 256E.08, subdivision 4, is not a party and may not 
 96.20  request a hearing under this section, except if assisting a 
 96.21  recipient as provided in subdivision 4. 
 96.22     (c) An applicant or recipient is not entitled to receive 
 96.23  social services beyond the services included in the amended 
 96.24  community social services plan developed under section 256E.081, 
 96.25  subdivision 3, if the county agency has met the requirements in 
 96.26  section 256E.081. 
 96.27     Sec. 9.  Minnesota Statutes 1996, section 256.045, 
 96.28  subdivision 5, is amended to read: 
 96.29     Subd. 5.  [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] 
 96.30  This subdivision does not apply to appeals under subdivision 
 96.31  3b.  A state human services referee shall conduct a hearing on 
 96.32  the appeal and shall recommend an order to the commissioner of 
 96.33  human services.  The recommended order must be based on all 
 96.34  relevant evidence and must not be limited to a review of the 
 96.35  propriety of the state or county agency's action.  A referee may 
 96.36  take official notice of adjudicative facts.  The commissioner of 
 97.1   human services may accept the recommended order of a state human 
 97.2   services referee and issue the order to the county agency and 
 97.3   the applicant, recipient, former recipient, or prepaid health 
 97.4   plan.  The commissioner on refusing to accept the recommended 
 97.5   order of the state human services referee, shall notify the 
 97.6   county agency and the applicant, recipient, former recipient, or 
 97.7   prepaid health plan of that fact and shall state reasons 
 97.8   therefor and shall allow each party ten days' time to submit 
 97.9   additional written argument on the matter.  After the expiration 
 97.10  of the ten-day period, the commissioner shall issue an order on 
 97.11  the matter to the county agency and the applicant, recipient, 
 97.12  former recipient, or prepaid health plan. 
 97.13     A party aggrieved by an order of the commissioner may 
 97.14  appeal under subdivision 7, or request reconsideration by the 
 97.15  commissioner within 30 days after the date the commissioner 
 97.16  issues the order.  The commissioner may reconsider an order upon 
 97.17  request of any party or on the commissioner's own motion.  A 
 97.18  request for reconsideration does not stay implementation of the 
 97.19  commissioner's order.  Upon reconsideration, the commissioner 
 97.20  may issue an amended order or an order affirming the original 
 97.21  order. 
 97.22     Any order of the commissioner issued under this subdivision 
 97.23  shall be conclusive upon the parties unless appeal is taken in 
 97.24  the manner provided by subdivision 7.  Any order of the 
 97.25  commissioner is binding on the parties and must be implemented 
 97.26  by the state agency or, a county agency, or a prepaid health 
 97.27  plan according to subdivision 3a, until the order is reversed by 
 97.28  the district court, or unless the commissioner or a district 
 97.29  court orders monthly assistance or aid or services paid or 
 97.30  provided under subdivision 10. 
 97.31     Except for a prepaid health plan, A vendor of medical care 
 97.32  as defined in section 256B.02, subdivision 7, or a vendor under 
 97.33  contract with a county agency to provide social services under 
 97.34  section 256E.08, subdivision 4, is not a party and may not 
 97.35  request a hearing or seek judicial review of an order issued 
 97.36  under this section, unless assisting a recipient as provided in 
 98.1   subdivision 4.  A prepaid health plan is a party to an appeal 
 98.2   under subdivision 3a, but cannot seek judicial review of an 
 98.3   order issued under this section. 
 98.4      Sec. 10.  Minnesota Statutes 1996, section 256.045, 
 98.5   subdivision 7, is amended to read: 
 98.6      Subd. 7.  [JUDICIAL REVIEW.] Except for a prepaid health 
 98.7   plan, any party who is aggrieved by an order of the commissioner 
 98.8   of human services, or the commissioner of health in appeals 
 98.9   within the commissioner's jurisdiction under subdivision 3b, may 
 98.10  appeal the order to the district court of the county responsible 
 98.11  for furnishing assistance, or, in appeals under subdivision 3b, 
 98.12  the county where the maltreatment occurred, by serving a written 
 98.13  copy of a notice of appeal upon the commissioner and any adverse 
 98.14  party of record within 30 days after the date the commissioner 
 98.15  issued the order, the amended order, or order affirming the 
 98.16  original order, and by filing the original notice and proof of 
 98.17  service with the court administrator of the district court.  
 98.18  Service may be made personally or by mail; service by mail is 
 98.19  complete upon mailing; no filing fee shall be required by the 
 98.20  court administrator in appeals taken pursuant to this 
 98.21  subdivision, with the exception of appeals taken under 
 98.22  subdivision 3b.  The commissioner may elect to become a party to 
 98.23  the proceedings in the district court.  Except for appeals under 
 98.24  subdivision 3b, any party may demand that the commissioner 
 98.25  furnish all parties to the proceedings with a copy of the 
 98.26  decision, and a transcript of any testimony, evidence, or other 
 98.27  supporting papers from the hearing held before the human 
 98.28  services referee, by serving a written demand upon the 
 98.29  commissioner within 30 days after service of the notice of 
 98.30  appeal.  Any party aggrieved by the failure of an adverse party 
 98.31  to obey an order issued by the commissioner under subdivision 5 
 98.32  may compel performance according to the order in the manner 
 98.33  prescribed in sections 586.01 to 586.12. 
 98.34     Sec. 11.  Minnesota Statutes 1996, section 256.476, 
 98.35  subdivision 2, is amended to read: 
 98.36     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
 99.1   following terms have the meanings given them: 
 99.2      (a) "County board" means the county board of commissioners 
 99.3   for the county of financial responsibility as defined in section 
 99.4   256G.02, subdivision 4, or its designated representative.  When 
 99.5   a human services board has been established under sections 
 99.6   402.01 to 402.10, it shall be considered the county board for 
 99.7   the purposes of this section. 
 99.8      (b) "Family" means the person's birth parents, adoptive 
 99.9   parents or stepparents, siblings or stepsiblings, children or 
 99.10  stepchildren, grandparents, grandchildren, niece, nephew, aunt, 
 99.11  uncle, or spouse.  For the purposes of this section, a family 
 99.12  member is at least 18 years of age. 
 99.13     (c) "Functional limitations" means the long-term inability 
 99.14  to perform an activity or task in one or more areas of major 
 99.15  life activity, including self-care, understanding and use of 
 99.16  language, learning, mobility, self-direction, and capacity for 
 99.17  independent living.  For the purpose of this section, the 
 99.18  inability to perform an activity or task results from a mental, 
 99.19  emotional, psychological, sensory, or physical disability, 
 99.20  condition, or illness. 
 99.21     (d) "Informed choice" means a voluntary decision made by 
 99.22  the person or the person's legal representative, after becoming 
 99.23  familiarized with the alternatives to: 
 99.24     (1) select a preferred alternative from a number of 
 99.25  feasible alternatives; 
 99.26     (2) select an alternative which may be developed in the 
 99.27  future; and 
 99.28     (3) refuse any or all alternatives. 
 99.29     (e) "Local agency" means the local agency authorized by the 
 99.30  county board to carry out the provisions of this section. 
 99.31     (f) "Person" or "persons" means a person or persons meeting 
 99.32  the eligibility criteria in subdivision 3. 
 99.33     (g) "Responsible individual" "Authorized representative" 
 99.34  means an individual designated by the person or their legal 
 99.35  representative to act on their behalf.  This individual may be a 
 99.36  family member, guardian, representative payee, or other 
100.1   individual designated by the person or their legal 
100.2   representative, if any, to assist in purchasing and arranging 
100.3   for supports.  For the purposes of this section, a responsible 
100.4   individual an authorized representative is at least 18 years of 
100.5   age. 
100.6      (h) "Screening" means the screening of a person's service 
100.7   needs under sections 256B.0911 and 256B.092. 
100.8      (i) "Supports" means services, care, aids, home 
100.9   modifications, or assistance purchased by the person or the 
100.10  person's family.  Examples of supports include respite care, 
100.11  assistance with daily living, and adaptive aids.  For the 
100.12  purpose of this section, notwithstanding the provisions of 
100.13  section 144A.43, supports purchased under the consumer support 
100.14  program are not considered home care services. 
100.15     (j) "Program of origination" means the program the 
100.16  individual transferred from when approved for the consumer 
100.17  support grant program. 
100.18     Sec. 12.  Minnesota Statutes 1996, section 256.476, 
100.19  subdivision 3, is amended to read: 
100.20     Subd. 3.  [ELIGIBILITY TO APPLY FOR GRANTS.] (a) A person 
100.21  is eligible to apply for a consumer support grant if the person 
100.22  meets all of the following criteria: 
100.23     (1) the person is eligible for and has been approved to 
100.24  receive services under medical assistance as determined under 
100.25  sections 256B.055 and 256B.056 or the person is eligible for and 
100.26  has been approved to receive services under alternative care 
100.27  services as determined under section 256B.0913 or the person has 
100.28  been approved to receive a grant under the developmental 
100.29  disability family support program under section 252.32; 
100.30     (2) the person is able to direct and purchase the person's 
100.31  own care and supports, or the person has a family member, legal 
100.32  representative, or other responsible individual authorized 
100.33  representative who can purchase and arrange supports on the 
100.34  person's behalf; 
100.35     (3) the person has functional limitations, requires ongoing 
100.36  supports to live in the community, and is at risk of or would 
101.1   continue institutionalization without such supports; and 
101.2      (4) the person will live in a home.  For the purpose of 
101.3   this section, "home" means the person's own home or home of a 
101.4   person's family member.  These homes are natural home settings 
101.5   and are not licensed by the department of health or human 
101.6   services. 
101.7      (b) Persons may not concurrently receive a consumer support 
101.8   grant if they are: 
101.9      (1) receiving home and community-based services under 
101.10  United States Code, title 42, section 1396h(c); personal care 
101.11  attendant and home health aide services under section 256B.0625; 
101.12  a developmental disability family support grant; or alternative 
101.13  care services under section 256B.0913; or 
101.14     (2) residing in an institutional or congregate care setting.
101.15     (c) A person or person's family receiving a consumer 
101.16  support grant shall not be charged a fee or premium by a local 
101.17  agency for participating in the program.  A person or person's 
101.18  family is not eligible for a consumer support grant if their 
101.19  income is at a level where they are required to pay a parental 
101.20  fee under sections 252.27, 256B.055, subdivision 12, and 256B.14 
101.21  and rules adopted under those sections for medical assistance 
101.22  services to a disabled child living with at least one parent.  
101.23     (d) The commissioner may limit the participation of nursing 
101.24  facility residents, residents of intermediate care facilities 
101.25  for persons with mental retardation, and the recipients of 
101.26  services from federal waiver programs in the consumer support 
101.27  grant program if the participation of these individuals will 
101.28  result in an increase in the cost to the state. 
101.29     (e) The commissioner shall establish a budgeted 
101.30  appropriation each fiscal year for the consumer support grant 
101.31  program.  The number of individuals participating in the program 
101.32  will be adjusted so the total amount allocated to counties does 
101.33  not exceed the amount of the budgeted appropriation.  The 
101.34  budgeted appropriation will be adjusted annually to accommodate 
101.35  changes in demand for the consumer support grants. 
101.36     Sec. 13.  Minnesota Statutes 1996, section 256.476, 
102.1   subdivision 4, is amended to read: 
102.2      Subd. 4.  [SUPPORT GRANTS; CRITERIA AND LIMITATIONS.] (a) A 
102.3   county board may choose to participate in the consumer support 
102.4   grant program.  If a county board chooses to participate in the 
102.5   program, the local agency shall establish written procedures and 
102.6   criteria to determine the amount and use of support grants.  
102.7   These procedures must include, at least, the availability of 
102.8   respite care, assistance with daily living, and adaptive aids.  
102.9   The local agency may establish monthly or annual maximum amounts 
102.10  for grants and procedures where exceptional resources may be 
102.11  required to meet the health and safety needs of the person on a 
102.12  time-limited basis, however, the total amount awarded to each 
102.13  individual may not exceed the limits established in subdivision 
102.14  5, paragraph (f). 
102.15     (b) Support grants to a person or a person's family may 
102.16  will be provided through a monthly subsidy or lump sum payment 
102.17  basis and be in the form of cash, voucher, or direct county 
102.18  payment to vendor.  Support grant amounts must be determined by 
102.19  the local agency.  Each service and item purchased with a 
102.20  support grant must meet all of the following criteria:  
102.21     (1) it must be over and above the normal cost of caring for 
102.22  the person if the person did not have functional limitations; 
102.23     (2) it must be directly attributable to the person's 
102.24  functional limitations; 
102.25     (3) it must enable the person or the person's family to 
102.26  delay or prevent out-of-home placement of the person; and 
102.27     (4) it must be consistent with the needs identified in the 
102.28  service plan, when applicable. 
102.29     (c) Items and services purchased with support grants must 
102.30  be those for which there are no other public or private funds 
102.31  available to the person or the person's family.  Fees assessed 
102.32  to the person or the person's family for health and human 
102.33  services are not reimbursable through the grant. 
102.34     (d) In approving or denying applications, the local agency 
102.35  shall consider the following factors:  
102.36     (1) the extent and areas of the person's functional 
103.1   limitations; 
103.2      (2) the degree of need in the home environment for 
103.3   additional support; and 
103.4      (3) the potential effectiveness of the grant to maintain 
103.5   and support the person in the family environment or the person's 
103.6   own home. 
103.7      (e) At the time of application to the program or screening 
103.8   for other services, the person or the person's family shall be 
103.9   provided sufficient information to ensure an informed choice of 
103.10  alternatives by the person, the person's legal representative, 
103.11  if any, or the person's family.  The application shall be made 
103.12  to the local agency and shall specify the needs of the person 
103.13  and family, the form and amount of grant requested, the items 
103.14  and services to be reimbursed, and evidence of eligibility for 
103.15  medical assistance or alternative care program. 
103.16     (f) Upon approval of an application by the local agency and 
103.17  agreement on a support plan for the person or person's family, 
103.18  the local agency shall make grants to the person or the person's 
103.19  family.  The grant shall be in an amount for the direct costs of 
103.20  the services or supports outlined in the service agreement.  
103.21     (g) Reimbursable costs shall not include costs for 
103.22  resources already available, such as special education classes, 
103.23  day training and habilitation, case management, other services 
103.24  to which the person is entitled, medical costs covered by 
103.25  insurance or other health programs, or other resources usually 
103.26  available at no cost to the person or the person's family. 
103.27     (h) The state of Minnesota, the county boards participating 
103.28  in the consumer support grant program, or the agencies acting on 
103.29  behalf of the county boards in the implementation and 
103.30  administration of the consumer support grant program shall not 
103.31  be liable for damages, injuries, or liabilities sustained 
103.32  through the purchase of support by the individual, the 
103.33  individual's family, or the authorized representative under this 
103.34  section with funds received through the consumer support grant 
103.35  program.  Liabilities include but are not limited to:  workers' 
103.36  compensation liability, the Federal Insurance Contributions Act 
104.1   (FICA), or the Federal Unemployment Tax Act (FUTA).  For 
104.2   purposes of this section, participating county boards and 
104.3   agencies acting on behalf of county boards are exempt from the 
104.4   provisions of section 268.04. 
104.5      Sec. 14.  Minnesota Statutes 1996, section 256.476, 
104.6   subdivision 5, is amended to read: 
104.7      Subd. 5.  [REIMBURSEMENT, ALLOCATIONS, AND REPORTING.] (a) 
104.8   For the purpose of transferring persons to the consumer support 
104.9   grant program from specific programs or services, such as the 
104.10  developmental disability family support program and alternative 
104.11  care program, personal care attendant, home health aide, or 
104.12  nursing facility services, the amount of funds transferred by 
104.13  the commissioner between the developmental disability family 
104.14  support program account, the alternative care account, the 
104.15  medical assistance account, or the consumer support grant 
104.16  account shall be based on each county's participation in 
104.17  transferring persons to the consumer support grant program from 
104.18  those programs and services. 
104.19     (b) At the beginning of each fiscal year, county 
104.20  allocations for consumer support grants shall be based on: 
104.21     (1) the number of persons to whom the county board expects 
104.22  to provide consumer supports grants; 
104.23     (2) their eligibility for current program and services; 
104.24     (3) the amount of nonfederal dollars expended on those 
104.25  individuals for those programs and services; or in situations 
104.26  where an individual is unable to obtain the support needed from 
104.27  the program of origination due to the unavailability of service 
104.28  providers at the time or the location where the supports are 
104.29  needed, the allocation will be based on the county's best 
104.30  estimate of the nonfederal dollars that would have been expended 
104.31  if the services had been available; and 
104.32     (4) projected dates when persons will start receiving 
104.33  grants.  County allocations shall be adjusted periodically by 
104.34  the commissioner based on the actual transfer of persons or 
104.35  service openings, and the nonfederal dollars associated with 
104.36  those persons or service openings, to the consumer support grant 
105.1   program. 
105.2      (c) The amount of funds transferred by the commissioner 
105.3   from the alternative care account and the medical assistance 
105.4   account for an individual may be changed if it is determined by 
105.5   the county or its agent that the individual's need for support 
105.6   has changed. 
105.7      (d) The authority to utilize funds transferred to the 
105.8   consumer support grant account for the purposes of implementing 
105.9   and administering the consumer support grant program will not be 
105.10  limited or constrained by the spending authority provided to the 
105.11  program of origination. 
105.12     (e) The commissioner shall use up to five percent of each 
105.13  county's allocation, as adjusted, for payments to that county 
105.14  for administrative expenses, to be paid as a proportionate 
105.15  addition to reported direct service expenditures. 
105.16     (d) (f) Except as provided below, the county allocation for 
105.17  each individual or individual's family cannot exceed 80 percent 
105.18  of the total nonfederal dollars expended on the individual by 
105.19  the program of origination except for the developmental 
105.20  disabilities family support grant program which can be approved 
105.21  up to 100 percent of the nonfederal dollars and in situations as 
105.22  described in paragraph (b), clause (4).  In situations where 
105.23  exceptional need exists or the individual's need for support 
105.24  increases, up to 100 percent of the nonfederal dollars expended 
105.25  may be allocated to the county.  Allocations that exceed 80 
105.26  percent of the nonfederal dollars expended on the individual by 
105.27  the program of origination must be approved by the 
105.28  commissioner.  The remainder of the amount expended on the 
105.29  individual by the program of origination will be used in the 
105.30  following proportions:  half will be made available to the 
105.31  consumer support grant program and participating counties for 
105.32  consumer training, resource development, and other costs, and 
105.33  half will be returned to the state general fund. 
105.34     (g) The commissioner may recover, suspend, or withhold 
105.35  payments if the county board, local agency, or grantee does not 
105.36  comply with the requirements of this section. 
106.1      Sec. 15.  Minnesota Statutes 1996, section 256.9363, 
106.2   subdivision 7, is amended to read: 
106.3      Subd. 7.  [MANAGED CARE PLAN VENDOR REQUIREMENTS.] The 
106.4   following requirements apply to all counties or vendors who 
106.5   contract with the department of human services to serve 
106.6   MinnesotaCare recipients.  Managed care plan contractors: 
106.7      (1) shall authorize and arrange for the provision of the 
106.8   full range of services listed in section 256.9353, except dental 
106.9   services provided under section 256B.037, in order to ensure 
106.10  appropriate health care is delivered to enrollees; 
106.11     (2) shall accept the prospective, per capita payment or 
106.12  other contractually defined payment from the commissioner in 
106.13  return for the provision and coordination of covered health care 
106.14  services for eligible individuals enrolled in the program; 
106.15     (3) may contract with other health care and social service 
106.16  practitioners to provide services to enrollees; 
106.17     (4) shall provide for an enrollee grievance process as 
106.18  required by the commissioner and set forth in the contract with 
106.19  the department; 
106.20     (5) shall retain all revenue from enrollee copayments; 
106.21     (6) shall accept all eligible MinnesotaCare enrollees, 
106.22  without regard to health status or previous utilization of 
106.23  health services; 
106.24     (7) shall demonstrate capacity to accept financial risk 
106.25  according to requirements specified in the contract with the 
106.26  department.  A health maintenance organization licensed under 
106.27  chapter 62D, or a nonprofit health plan licensed under chapter 
106.28  62C, is not required to demonstrate financial risk capacity, 
106.29  beyond that which is required to comply with chapters 62C and 
106.30  62D; and 
106.31     (8) shall submit information as required by the 
106.32  commissioner, including data required for assessing enrollee 
106.33  satisfaction, quality of care, cost, and utilization of services.
106.34     Sec. 16.  Minnesota Statutes 1996, section 256.969, 
106.35  subdivision 1, is amended to read: 
106.36     Subdivision 1.  [HOSPITAL COST INDEX.] (a) The hospital 
107.1   cost index shall be the change in the Consumer Price Index-All 
107.2   Items (United States city average) (CPI-U) forecasted by Data 
107.3   Resources, Inc.  The commissioner shall use the indices as 
107.4   forecasted in the third quarter of the calendar year prior to 
107.5   the rate year.  The hospital cost index may be used to adjust 
107.6   the base year operating payment rate through the rate year on an 
107.7   annually compounded basis.  
107.8      (b) For fiscal years beginning on or after July 1, 1993, 
107.9   the commissioner of human services shall not provide automatic 
107.10  annual inflation adjustments for hospital payment rates under 
107.11  medical assistance, nor under general assistance medical care, 
107.12  except that the inflation adjustments under paragraph (a) for 
107.13  medical assistance, excluding general assistance medical care, 
107.14  shall apply through calendar year 1997 1999.  The commissioner 
107.15  of finance shall include as a budget change request in each 
107.16  biennial detailed expenditure budget submitted to the 
107.17  legislature under section 16A.11 annual adjustments in hospital 
107.18  payment rates under medical assistance and general assistance 
107.19  medical care, based upon the hospital cost index. 
107.20     Sec. 17.  Minnesota Statutes 1996, section 256.9695, 
107.21  subdivision 1, is amended to read: 
107.22     Subdivision 1.  [APPEALS.] A hospital may appeal a decision 
107.23  arising from the application of standards or methods under 
107.24  section 256.9685, 256.9686, or 256.969, if an appeal would 
107.25  result in a change to the hospital's payment rate or payments.  
107.26  Both overpayments and underpayments that result from the 
107.27  submission of appeals shall be implemented.  Regardless of any 
107.28  appeal outcome, relative values shall not be recalculated.  The 
107.29  appeal shall be heard by an administrative law judge according 
107.30  to sections 14.57 to 14.62, or upon agreement by both parties, 
107.31  according to a modified appeals procedure established by the 
107.32  commissioner and the office of administrative hearings.  In any 
107.33  proceeding under this section, the appealing party must 
107.34  demonstrate by a preponderance of the evidence that the 
107.35  commissioner's determination is incorrect or not according to 
107.36  law. 
108.1      (a) To appeal a payment rate or payment determination or a 
108.2   determination made from base year information, the hospital 
108.3   shall file a written appeal request to the commissioner within 
108.4   60 days of the date the payment rate determination was mailed.  
108.5   The appeal request shall specify:  (i) the disputed items; (ii) 
108.6   the authority in federal or state statute or rule upon which the 
108.7   hospital relies for each disputed item; and (iii) the name and 
108.8   address of the person to contact regarding the appeal.  Facts to 
108.9   be considered in any appeal of base year information are limited 
108.10  to those in existence at the time the payment rates of the first 
108.11  rate year were established from the base year information.  In 
108.12  the case of Medicare settled appeals, the 60-day appeal period 
108.13  shall begin on the mailing date of the notice by the Medicare 
108.14  program or the date the medical assistance payment rate 
108.15  determination notice is mailed, whichever is later. 
108.16     (b) To appeal a payment rate or payment change that results 
108.17  from a difference in case mix between the base year and a rate 
108.18  year, the procedures and requirements of paragraph (a) apply.  
108.19  However, the appeal must be filed with the commissioner within 
108.20  120 days after the end of a rate year.  A case mix appeal must 
108.21  apply to the cost of services to all medical assistance patients 
108.22  that received inpatient services from the hospital during the 
108.23  rate year appealed.  For case mix appeals filed after January 1, 
108.24  1997, the difference in case mix and the corresponding payment 
108.25  adjustment must exceed a threshold of five percent. 
108.26     Sec. 18.  Minnesota Statutes 1996, section 256B.037, 
108.27  subdivision 1a, is amended to read: 
108.28     Subd. 1a.  [MULTIPLE DENTAL PLAN AREAS.] After the 
108.29  department has executed contracts with dental plans to provide 
108.30  covered dental care services in a multiple dental plan area, the 
108.31  department shall:  
108.32     (1) inform applicants and recipients, in writing, of 
108.33  available dental plans, when written notice of dental plan 
108.34  selection must be submitted to the department, and when dental 
108.35  plan participation begins; 
108.36     (2) randomly assign to a dental plan recipients who fail to 
109.1   notify the department in writing of their dental plan choice; 
109.2   and 
109.3      (3) notify recipients, in writing, of their assigned dental 
109.4   plan before the effective date of the recipient's dental plan 
109.5   participation.  
109.6      Sec. 19.  Minnesota Statutes 1996, section 256B.037, 
109.7   subdivision 2, is amended to read: 
109.8      Subd. 2.  [ESTABLISHMENT OF PREPAYMENT RATES.] The 
109.9   commissioner shall consult with an independent actuary to 
109.10  establish prepayment rates, but shall retain final authority 
109.11  over the methodology used to establish the rates.  Payment rates 
109.12  may be adjusted to reflect increased availability of providers 
109.13  under the demonstration project in subdivision 1.  The 
109.14  commissioner may negotiate contracts which make payment after 
109.15  the month of coverage.  The prepayment dental rates under this 
109.16  section, combined with other prepaid programs, shall not result 
109.17  in payments that exceed the per capita expenditures that would 
109.18  have been made for dental services by the programs under a 
109.19  fee-for-service reimbursement system.  The package of dental 
109.20  benefits provided to individuals under this subdivision shall 
109.21  not be less than the package of benefits provided under 
109.22  the medical assistance fee-for-service reimbursement system for 
109.23  dental services program for which they are eligible. 
109.24     Sec. 20.  Minnesota Statutes 1996, section 256B.04, is 
109.25  amended by adding a subdivision to read: 
109.26     Subd. 1a.  [COMPREHENSIVE HEALTH SERVICES SYSTEM.] The 
109.27  commissioner shall carry out the duties in this section with the 
109.28  participation of the boards of county commissioners, and with 
109.29  full consideration for the interests of counties, to plan and 
109.30  implement a unified, accountable, comprehensive health services 
109.31  system that: 
109.32     (1) promotes accessible and quality health care for all 
109.33  Minnesotans; 
109.34     (2) assures provision of adequate health care within 
109.35  limited state and county resources; 
109.36     (3) avoids shifting funding burdens to county tax 
110.1   resources; 
110.2      (4) provides statewide eligibility, benefit, and service 
110.3   expectations; 
110.4      (5) manages care, develops risk management strategies, and 
110.5   contains cost in all health and human services; and 
110.6      (6) supports effective implementation of publicly funded 
110.7   health and human services for all areas of the state. 
110.8      Sec. 21.  Minnesota Statutes 1996, section 256B.055, 
110.9   subdivision 12, is amended to read: 
110.10     Subd. 12.  [DISABLED CHILDREN.] (a) A person is eligible 
110.11  for medical assistance if the person is under age 19 and 
110.12  qualifies as a disabled individual under United States Code, 
110.13  title 42, section 1382c(a), and would be eligible for medical 
110.14  assistance under the state plan if residing in a medical 
110.15  institution, and the child requires a level of care provided in 
110.16  a hospital, nursing facility, or intermediate care facility for 
110.17  persons with mental retardation or related conditions, for whom 
110.18  home care is appropriate, provided that the cost to medical 
110.19  assistance under this section is not more than the amount that 
110.20  medical assistance would pay for if the child resides in an 
110.21  institution.  After the child is determined to be eligible under 
110.22  this section, the commissioner shall review the child's 
110.23  disability under United States Code, title 42, section 1382c(a) 
110.24  and level of care defined under this section no more often than 
110.25  annually and may elect, based on the recommendation of health 
110.26  care professionals under contract with the state medical review 
110.27  team, to extend the review of disability and level of care up to 
110.28  a maximum of four years.  The commissioner's decision on the 
110.29  frequency of continuing review of disability and level of care 
110.30  is not subject to administrative appeal under section 256.045.  
110.31  Nothing in this subdivision shall be construed as affecting 
110.32  other redeterminations of medical assistance eligibility under 
110.33  this chapter and annual cost-effective reviews under this 
110.34  section.  
110.35     (b) For purposes of this subdivision, "hospital" means an 
110.36  institution as defined in section 144.696, subdivision 3, 
111.1   144.55, subdivision 3, or Minnesota Rules, part 4640.3600, and 
111.2   licensed pursuant to sections 144.50 to 144.58.  For purposes of 
111.3   this subdivision, a child requires a level of care provided in a 
111.4   hospital if the child is determined by the commissioner to need 
111.5   an extensive array of health services, including mental health 
111.6   services, for an undetermined period of time, whose health 
111.7   condition requires frequent monitoring and treatment by a health 
111.8   care professional or by a person supervised by a health care 
111.9   professional, who would reside in a hospital or require frequent 
111.10  hospitalization if these services were not provided, and the 
111.11  daily care needs are more complex than a nursing facility level 
111.12  of care.  
111.13     A child with serious emotional disturbance requires a level 
111.14  of care provided in a hospital if the commissioner determines 
111.15  that the individual requires 24-hour supervision because the 
111.16  person exhibits recurrent or frequent suicidal or homicidal 
111.17  ideation or behavior, recurrent or frequent psychosomatic 
111.18  disorders or somatopsychic disorders that may become life 
111.19  threatening, recurrent or frequent severe socially unacceptable 
111.20  behavior associated with psychiatric disorder, ongoing and 
111.21  chronic psychosis or severe, ongoing and chronic developmental 
111.22  problems requiring continuous skilled observation, or severe 
111.23  disabling symptoms for which office-centered outpatient 
111.24  treatment is not adequate, and which overall severely impact the 
111.25  individual's ability to function. 
111.26     (c) For purposes of this subdivision, "nursing facility" 
111.27  means a facility which provides nursing care as defined in 
111.28  section 144A.01, subdivision 5, licensed pursuant to sections 
111.29  144A.02 to 144A.10, which is appropriate if a person is in 
111.30  active restorative treatment; is in need of special treatments 
111.31  provided or supervised by a licensed nurse; or has unpredictable 
111.32  episodes of active disease processes requiring immediate 
111.33  judgment by a licensed nurse.  For purposes of this subdivision, 
111.34  a child requires the level of care provided in a nursing 
111.35  facility if the child is determined by the commissioner to meet 
111.36  the requirements of the preadmission screening assessment 
112.1   document under section 256B.0911 and the home care independent 
112.2   rating document under section 256B.0627, subdivision 5, 
112.3   paragraph (f), item (iii), adjusted to address age-appropriate 
112.4   standards for children age 18 and under, pursuant to section 
112.5   256B.0627, subdivision 5, paragraph (d), clause (2). 
112.6      (d) For purposes of this subdivision, "intermediate care 
112.7   facility for persons with mental retardation or related 
112.8   conditions" or "ICF/MR" means a program licensed to provide 
112.9   services to persons with mental retardation under section 
112.10  252.28, and chapter 245A, and a physical plant licensed as a 
112.11  supervised living facility under chapter 144, which together are 
112.12  certified by the Minnesota department of health as meeting the 
112.13  standards in Code of Federal Regulations, title 42, part 483, 
112.14  for an intermediate care facility which provides services for 
112.15  persons with mental retardation or persons with related 
112.16  conditions who require 24-hour supervision and active treatment 
112.17  for medical, behavioral, or habilitation needs.  For purposes of 
112.18  this subdivision, a child requires a level of care provided in 
112.19  an ICF/MR if the commissioner finds that the child has mental 
112.20  retardation or a related condition in accordance with section 
112.21  256B.092, is in need of a 24-hour plan of care and active 
112.22  treatment similar to persons with mental retardation, and there 
112.23  is a reasonable indication that the child will need ICF/MR 
112.24  services. 
112.25     (e) For purposes of this subdivision, a person requires the 
112.26  level of care provided in a nursing facility if the person 
112.27  requires 24-hour monitoring or supervision and a plan of mental 
112.28  health treatment because of specific symptoms or functional 
112.29  impairments associated with a serious mental illness or disorder 
112.30  diagnosis, which meet severity criteria for mental health 
112.31  established by the commissioner based on standards developed for 
112.32  the Wisconsin Katie Beckett program and published in July 1994 
112.33  March 1997 as the Minnesota Mental Health Level of Care for 
112.34  Children and Adolescents with Severe Emotional Disorders. 
112.35     (f) The determination of the level of care needed by the 
112.36  child shall be made by the commissioner based on information 
113.1   supplied to the commissioner by the parent or guardian, the 
113.2   child's physician or physicians, and other professionals as 
113.3   requested by the commissioner.  The commissioner shall establish 
113.4   a screening team to conduct the level of care determinations 
113.5   according to this subdivision. 
113.6      (g) If a child meets the conditions in paragraph (b), (c), 
113.7   (d), or (e), the commissioner must assess the case to determine 
113.8   whether: 
113.9      (1) the child qualifies as a disabled individual under 
113.10  United States Code, title 42, section 1382c(a), and would be 
113.11  eligible for medical assistance if residing in a medical 
113.12  institution; and 
113.13     (2) the cost of medical assistance services for the child, 
113.14  if eligible under this subdivision, would not be more than the 
113.15  cost to medical assistance if the child resides in a medical 
113.16  institution to be determined as follows: 
113.17     (i) for a child who requires a level of care provided in an 
113.18  ICF/MR, the cost of care for the child in an institution shall 
113.19  be determined using the average payment rate established for the 
113.20  regional treatment centers that are certified as ICFs/MR; 
113.21     (ii) for a child who requires a level of care provided in 
113.22  an inpatient hospital setting according to paragraph (b), 
113.23  cost-effectiveness shall be determined according to Minnesota 
113.24  Rules, part 9505.3520, items F and G; and 
113.25     (iii) for a child who requires a level of care provided in 
113.26  a nursing facility according to paragraph (c) or (e), 
113.27  cost-effectiveness shall be determined according to Minnesota 
113.28  Rules, part 9505.3040, except that the nursing facility average 
113.29  rate shall be adjusted to reflect rates which would be paid for 
113.30  children under age 16.  The commissioner may authorize an amount 
113.31  up to the amount medical assistance would pay for a child 
113.32  referred to the commissioner by the preadmission screening team 
113.33  under section 256B.0911. 
113.34     (h) Children eligible for medical assistance services under 
113.35  section 256B.055, subdivision 12, as of June 30, 1995, must be 
113.36  screened according to the criteria in this subdivision prior to 
114.1   January 1, 1996.  Children found to be ineligible may not be 
114.2   removed from the program until January 1, 1996.  
114.3      Sec. 22.  Minnesota Statutes 1996, section 256B.056, 
114.4   subdivision 4, is amended to read: 
114.5      Subd. 4.  [INCOME.] To be eligible for medical assistance, 
114.6   a person must not have, or anticipate receiving, semiannual 
114.7   income in excess of 120 percent of the income standards by 
114.8   family size used in the aid to families with dependent children 
114.9   program, except that families and children may have an income up 
114.10  to 133-1/3 percent of the AFDC income standard.  In computing 
114.11  income to determine eligibility of persons who are not residents 
114.12  of long-term care facilities, the commissioner shall disregard 
114.13  increases in income as required by Public Law Numbers 94-566, 
114.14  section 503; 99-272; and 99-509.  Veterans aid and attendance 
114.15  benefits and Veterans Administration unusual medical expense 
114.16  payments are considered income to the recipient. 
114.17     Sec. 23.  Minnesota Statutes 1996, section 256B.056, 
114.18  subdivision 5, is amended to read: 
114.19     Subd. 5.  [EXCESS INCOME.] A person who has excess income 
114.20  is eligible for medical assistance if the person has expenses 
114.21  for medical care that are more than the amount of the person's 
114.22  excess income, computed by deducting incurred medical expenses 
114.23  from the excess income to reduce the excess to the income 
114.24  standard specified in subdivision 4.  The person shall elect to 
114.25  have the medical expenses deducted at the beginning of a 
114.26  one-month budget period or at the beginning of a six-month 
114.27  budget period.  Until June 30, 1993, or the date the Medicaid 
114.28  Management Information System (MMIS) upgrade is implemented, 
114.29  whichever occurs last, The commissioner shall allow persons 
114.30  eligible for assistance on a one-month spenddown basis under 
114.31  this subdivision to elect to pay the monthly spenddown amount in 
114.32  advance of the month of eligibility to the local state agency in 
114.33  order to maintain eligibility on a continuous basis.  If the 
114.34  recipient does not pay the spenddown amount on or before 
114.35  the 10th 20th of the month, the recipient is ineligible for this 
114.36  option for the following month.  The local agency must deposit 
115.1   spenddown payments into its treasury and issue a monthly payment 
115.2   to the state agency with the necessary individual account 
115.3   information.  The local agency shall code the client eligibility 
115.4   Medicaid Management Information System (MMIS) to indicate that 
115.5   the spenddown obligation has been satisfied for the month 
115.6   paid recipient has elected this option.  The state agency shall 
115.7   convey this information recipient eligibility information 
115.8   relative to the collection of the spenddown to providers through 
115.9   eligibility cards which list no remaining spenddown obligation.  
115.10  After the implementation of the MMIS upgrade, the Electronic 
115.11  Verification System (EVS).  A recipient electing advance payment 
115.12  must pay the state agency the monthly spenddown amount on or 
115.13  before the 10th 20th of the month in order to be eligible for 
115.14  this option in the following month.  
115.15     Sec. 24.  Minnesota Statutes 1996, section 256B.057, 
115.16  subdivision 1, is amended to read: 
115.17     Subdivision 1.  [PREGNANT WOMEN AND INFANTS.] An infant 
115.18  less than one year of age or a pregnant woman who has written 
115.19  verification of a positive pregnancy test from a physician or 
115.20  licensed registered nurse, is eligible for medical assistance if 
115.21  countable family income is equal to or less than 275 percent of 
115.22  the federal poverty guideline for the same family size.  For 
115.23  purposes of this subdivision, "countable family income" means 
115.24  the amount of income considered available using the methodology 
115.25  of the AFDC program, except for the earned income disregard and 
115.26  employment deductions.  An amount equal to the amount of earned 
115.27  income exceeding 275 percent of the federal poverty guideline, 
115.28  up to a maximum of the amount by which the combined total of 185 
115.29  percent of the federal poverty guideline plus the earned income 
115.30  disregards and deductions of the AFDC program exceeds 275 
115.31  percent of the federal poverty guideline will be deducted for 
115.32  pregnant women and infants less than one year of age.  
115.33  Eligibility for a pregnant woman or infant less than one year of 
115.34  age under this subdivision must be determined without regard to 
115.35  asset standards established in section 256B.056, subdivision 3.  
115.36     An infant born on or after January 1, 1991, to a woman who 
116.1   was eligible for and receiving medical assistance on the date of 
116.2   the child's birth shall continue to be eligible for medical 
116.3   assistance without redetermination until the child's first 
116.4   birthday, as long as the child remains in the woman's household. 
116.5      Sec. 25.  Minnesota Statutes 1996, section 256B.057, 
116.6   subdivision 1b, is amended to read: 
116.7      Subd. 1b.  [PREGNANT WOMEN AND INFANTS; EXPANSION.] This 
116.8   subdivision supersedes subdivision 1 as long as the Minnesota 
116.9   health care reform waiver remains in effect.  When the waiver 
116.10  expires, the commissioner of human services shall publish a 
116.11  notice in the State Register and notify the revisor of 
116.12  statutes.  An infant less than two years of age or a pregnant 
116.13  woman who has written verification of a positive pregnancy test 
116.14  from a physician or licensed registered nurse, is eligible for 
116.15  medical assistance if countable family income is equal to or 
116.16  less than 275 percent of the federal poverty guideline for the 
116.17  same family size.  For purposes of this subdivision, "countable 
116.18  family income" means the amount of income considered available 
116.19  using the methodology of the AFDC program, except for the earned 
116.20  income disregard and employment deductions.  An amount equal to 
116.21  the amount of earned income exceeding 275 percent of the federal 
116.22  poverty guideline, up to a maximum of the amount by which the 
116.23  combined total of 185 percent of the federal poverty guideline 
116.24  plus the earned income disregards and deductions of the AFDC 
116.25  program exceeds 275 percent of the federal poverty guideline 
116.26  will be deducted for pregnant women and infants less than two 
116.27  years of age.  Eligibility for a pregnant woman or infant less 
116.28  than two years of age under this subdivision must be determined 
116.29  without regard to asset standards established in section 
116.30  256B.056, subdivision 3.  
116.31     An infant born on or after January 1, 1991, to a woman who 
116.32  was eligible for and receiving medical assistance on the date of 
116.33  the child's birth shall continue to be eligible for medical 
116.34  assistance without redetermination until the child's second 
116.35  birthday, as long as the child remains in the woman's household. 
116.36     Sec. 26.  Minnesota Statutes 1996, section 256B.057, 
117.1   subdivision 2, is amended to read: 
117.2      Subd. 2.  [CHILDREN.] A child one through five years of age 
117.3   in a family whose countable income is less than 133 percent of 
117.4   the federal poverty guidelines for the same family size, is 
117.5   eligible for medical assistance.  A child six through 18 years 
117.6   of age, who was born after September 30, 1983, in a family whose 
117.7   countable income is less than 100 percent of the federal poverty 
117.8   guidelines for the same family size is eligible for medical 
117.9   assistance.  Eligibility for children under this subdivision 
117.10  must be determined without regard to asset standards established 
117.11  in section 256B.056, subdivision 3.  
117.12     Sec. 27.  Minnesota Statutes 1996, section 256B.0625, is 
117.13  amended by adding a subdivision to read: 
117.14     Subd. 31a.  [AUGMENTATIVE AND ALTERNATIVE COMMUNICATION 
117.15  SYSTEMS.] (a) Medical assistance covers augmentative and 
117.16  alternative communication systems consisting of electronic or 
117.17  nonelectronic devices and the related components necessary to 
117.18  enable a person with severe expressive communication limitations 
117.19  to produce or transmit messages or symbols in a manner that 
117.20  compensates for that disability. 
117.21     (b) By January 1, 1998, the commissioner, in cooperation 
117.22  with the commissioner of administration, shall establish an 
117.23  augmentative and alternative communication system purchasing 
117.24  program within a state agency or by contract with a qualified 
117.25  private entity.  The purpose of this service is to facilitate 
117.26  ready availability of the augmentative and alternative 
117.27  communication systems needed to meet the needs of persons with 
117.28  severe expressive communication limitations in an efficient and 
117.29  cost-effective manner.  This program shall: 
117.30     (1) coordinate purchase and rental of augmentative and 
117.31  alternative communication systems; 
117.32     (2) negotiate agreements with manufacturers and vendors for 
117.33  purchase of components of these systems, for warranty coverage, 
117.34  and for repair service; 
117.35     (3) when efficient and cost-effective, maintain and 
117.36  refurbish if needed, an inventory of components of augmentative 
118.1   and alternative communication systems for short- or long-term 
118.2   loan to recipients; 
118.3      (4) facilitate training sessions for service providers, 
118.4   consumers, and families on augmentative and alternative 
118.5   communication systems; and 
118.6      (5) develop a recycling program for used augmentative and 
118.7   alternative communications systems to be reissued and used for 
118.8   trials and short-term use, when appropriate. 
118.9      The availability of components of augmentative and 
118.10  alternative communication systems through this program is 
118.11  subject to prior authorization requirements established under 
118.12  subdivision 25. 
118.13     Reimbursement rates established by this purchasing program 
118.14  are not subject to Minnesota Rules, part 9505.0445, item S or T. 
118.15     (c) Augmentative and alternative communication systems and 
118.16  related components that are prior authorized by the department 
118.17  through pass through vendors during the period from January 1, 
118.18  1997, until the augmentative and alternative communication 
118.19  system purchasing program or other alternatives are operational 
118.20  shall be paid under the medical assistance program at the actual 
118.21  price charged the pass through vendor plus 20 percent to cover 
118.22  administrative costs of prior authorization and billing and 
118.23  shipping charges. 
118.24     Sec. 28.  Minnesota Statutes 1996, section 256B.0626, is 
118.25  amended to read: 
118.26     256B.0626 [ESTIMATION OF 50TH PERCENTILE OF PREVAILING 
118.27  CHARGES.] 
118.28     (a) The 50th percentile of the prevailing charge for the 
118.29  base year identified in statute must be estimated by the 
118.30  commissioner in the following situations: 
118.31     (1) there were less than ten five billings in the calendar 
118.32  year specified in legislation governing maximum payment rates; 
118.33     (2) the service was not available in the calendar year 
118.34  specified in legislation governing maximum payment rates; 
118.35     (3) the payment amount is the result of a provider appeal; 
118.36     (4) the procedure code description has changed since the 
119.1   calendar year specified in legislation governing maximum payment 
119.2   rates, and, therefore, the prevailing charge information 
119.3   reflects the same code but a different procedure description; or 
119.4      (5) the 50th percentile reflects a payment which is grossly 
119.5   inequitable when compared with payment rates for procedures or 
119.6   services which are substantially similar. 
119.7      (b) When one of the situations identified in paragraph (a) 
119.8   occurs, the commissioner shall use the following methodology to 
119.9   reconstruct a rate comparable to the 50th percentile of the 
119.10  prevailing rate: 
119.11     (1) refer to information which exists for the first nine 
119.12  four billings in the calendar year specified in legislation 
119.13  governing maximum payment rates; or 
119.14     (2) refer to surrounding or comparable procedure codes; or 
119.15     (3) refer to the 50th percentile of years subsequent to the 
119.16  calendar year specified in legislation governing maximum payment 
119.17  rates, and reduce that amount by applying an appropriate 
119.18  Consumer Price Index formula; or 
119.19     (4) refer to relative value indexes; or 
119.20     (5) refer to reimbursement information from other third 
119.21  parties, such as Medicare. 
119.22     Sec. 29.  Minnesota Statutes 1996, section 256B.0627, 
119.23  subdivision 5, is amended to read: 
119.24     Subd. 5.  [LIMITATION ON PAYMENTS.] Medical assistance 
119.25  payments for home care services shall be limited according to 
119.26  this subdivision.  
119.27     (a)  [LIMITS ON SERVICES WITHOUT PRIOR AUTHORIZATION.] A 
119.28  recipient may receive the following home care services during a 
119.29  calendar year: 
119.30     (1) any initial assessment; and 
119.31     (2) up to two reassessments per year done to determine a 
119.32  recipient's need for personal care services; and 
119.33     (3) up to five skilled nurse visits.  
119.34     (b)  [PRIOR AUTHORIZATION; EXCEPTIONS.] All home care 
119.35  services above the limits in paragraph (a) must receive the 
119.36  commissioner's prior authorization, except when: 
120.1      (1) the home care services were required to treat an 
120.2   emergency medical condition that if not immediately treated 
120.3   could cause a recipient serious physical or mental disability, 
120.4   continuation of severe pain, or death.  The provider must 
120.5   request retroactive authorization no later than five working 
120.6   days after giving the initial service.  The provider must be 
120.7   able to substantiate the emergency by documentation such as 
120.8   reports, notes, and admission or discharge histories; 
120.9      (2) the home care services were provided on or after the 
120.10  date on which the recipient's eligibility began, but before the 
120.11  date on which the recipient was notified that the case was 
120.12  opened.  Authorization will be considered if the request is 
120.13  submitted by the provider within 20 working days of the date the 
120.14  recipient was notified that the case was opened; 
120.15     (3) a third-party payor for home care services has denied 
120.16  or adjusted a payment.  Authorization requests must be submitted 
120.17  by the provider within 20 working days of the notice of denial 
120.18  or adjustment.  A copy of the notice must be included with the 
120.19  request; 
120.20     (4) the commissioner has determined that a county or state 
120.21  human services agency has made an error; or 
120.22     (5) the professional nurse determines an immediate need for 
120.23  up to 40 skilled nursing or home health aide visits per calendar 
120.24  year and submits a request for authorization within 20 working 
120.25  days of the initial service date, and medical assistance is 
120.26  determined to be the appropriate payer. 
120.27     (c)  [RETROACTIVE AUTHORIZATION.] A request for retroactive 
120.28  authorization will be evaluated according to the same criteria 
120.29  applied to prior authorization requests.  
120.30     (d)  [ASSESSMENT AND SERVICE PLAN.] Assessments under 
120.31  section 256B.0627, subdivision 1, paragraph (a), shall be 
120.32  conducted initially, and at least annually thereafter, in person 
120.33  with the recipient and result in a completed service plan using 
120.34  forms specified by the commissioner.  Within 30 days of 
120.35  recipient or responsible party request for home care services, 
120.36  the assessment, the service plan, and other information 
121.1   necessary to determine medical necessity such as diagnostic or 
121.2   testing information, social or medical histories, and hospital 
121.3   or facility discharge summaries shall be submitted to the 
121.4   commissioner.  For personal care services: 
121.5      (1) The amount and type of service authorized based upon 
121.6   the assessment and service plan will follow the recipient if the 
121.7   recipient chooses to change providers.  
121.8      (2) If the recipient's medical need changes, the 
121.9   recipient's provider may assess the need for a change in service 
121.10  authorization and request the change from the county public 
121.11  health nurse.  Within 30 days of the request, the public health 
121.12  nurse will determine whether to request the change in services 
121.13  based upon the provider assessment, or conduct a home visit to 
121.14  assess the need and determine whether the change is appropriate. 
121.15     (3) To continue to receive personal care services when the 
121.16  recipient displays no significant change, the county public 
121.17  health nurse has the option to review with the commissioner, or 
121.18  the commissioner's designee, the service plan on record and 
121.19  receive authorization for up to an additional 12 months at a 
121.20  time for up to three years. 
121.21     (e)  [PRIOR AUTHORIZATION.] The commissioner, or the 
121.22  commissioner's designee, shall review the assessment, the 
121.23  service plan, and any additional information that is submitted.  
121.24  The commissioner shall, within 30 days after receiving a 
121.25  complete request, assessment, and service plan, authorize home 
121.26  care services as follows:  
121.27     (1)  [HOME HEALTH SERVICES.] All home health services 
121.28  provided by a licensed nurse or a home health aide must be prior 
121.29  authorized by the commissioner or the commissioner's designee.  
121.30  Prior authorization must be based on medical necessity and 
121.31  cost-effectiveness when compared with other care options.  When 
121.32  home health services are used in combination with personal care 
121.33  and private duty nursing, the cost of all home care services 
121.34  shall be considered for cost-effectiveness.  The commissioner 
121.35  shall limit nurse and home health aide visits to no more than 
121.36  one visit each per day. 
122.1      (2)  [PERSONAL CARE SERVICES.] (i) All personal care 
122.2   services and registered nurse supervision must be prior 
122.3   authorized by the commissioner or the commissioner's designee 
122.4   except for the assessments established in paragraph (a).  The 
122.5   amount of personal care services authorized must be based on the 
122.6   recipient's home care rating.  A child may not be found to be 
122.7   dependent in an activity of daily living if because of the 
122.8   child's age an adult would either perform the activity for the 
122.9   child or assist the child with the activity and the amount of 
122.10  assistance needed is similar to the assistance appropriate for a 
122.11  typical child of the same age.  Based on medical necessity, the 
122.12  commissioner may authorize: 
122.13     (A) up to two times the average number of direct care hours 
122.14  provided in nursing facilities for the recipient's comparable 
122.15  case mix level; or 
122.16     (B) up to three times the average number of direct care 
122.17  hours provided in nursing facilities for recipients who have 
122.18  complex medical needs or are dependent in at least seven 
122.19  activities of daily living and need physical assistance with 
122.20  eating or have a neurological diagnosis; or 
122.21     (C) up to 60 percent of the average reimbursement rate, as 
122.22  of July 1, 1991, for care provided in a regional treatment 
122.23  center for recipients who have Level I behavior, plus any 
122.24  inflation adjustment as provided by the legislature for personal 
122.25  care service; or 
122.26     (D) up to the amount the commissioner would pay, as of July 
122.27  1, 1991, plus any inflation adjustment provided for home care 
122.28  services, for care provided in a regional treatment center for 
122.29  recipients referred to the commissioner by a regional treatment 
122.30  center preadmission evaluation team.  For purposes of this 
122.31  clause, home care services means all services provided in the 
122.32  home or community that would be included in the payment to a 
122.33  regional treatment center; or 
122.34     (E) up to the amount medical assistance would reimburse for 
122.35  facility care for recipients referred to the commissioner by a 
122.36  preadmission screening team established under section 256B.0911 
123.1   or 256B.092; and 
123.2      (F) a reasonable amount of time for the provision of 
123.3   nursing supervision of personal care services.  
123.4      (ii) The number of direct care hours shall be determined 
123.5   according to the annual cost report submitted to the department 
123.6   by nursing facilities.  The average number of direct care hours, 
123.7   as established by May 1, 1992, shall be calculated and 
123.8   incorporated into the home care limits on July 1, 1992.  These 
123.9   limits shall be calculated to the nearest quarter hour. 
123.10     (iii) The home care rating shall be determined by the 
123.11  commissioner or the commissioner's designee based on information 
123.12  submitted to the commissioner by the county public health nurse 
123.13  on forms specified by the commissioner.  The home care rating 
123.14  shall be a combination of current assessment tools developed 
123.15  under sections 256B.0911 and 256B.501 with an addition for 
123.16  seizure activity that will assess the frequency and severity of 
123.17  seizure activity and with adjustments, additions, and 
123.18  clarifications that are necessary to reflect the needs and 
123.19  conditions of recipients who need home care including children 
123.20  and adults under 65 years of age.  The commissioner shall 
123.21  establish these forms and protocols under this section and shall 
123.22  use an advisory group, including representatives of recipients, 
123.23  providers, and counties, for consultation in establishing and 
123.24  revising the forms and protocols. 
123.25     (iv) A recipient shall qualify as having complex medical 
123.26  needs if the care required is difficult to perform and because 
123.27  of recipient's medical condition requires more time than 
123.28  community-based standards allow or requires more skill than 
123.29  would ordinarily be required and the recipient needs or has one 
123.30  or more of the following: 
123.31     (A) daily tube feedings; 
123.32     (B) daily parenteral therapy; 
123.33     (C) wound or decubiti care; 
123.34     (D) postural drainage, percussion, nebulizer treatments, 
123.35  suctioning, tracheotomy care, oxygen, mechanical ventilation; 
123.36     (E) catheterization; 
124.1      (F) ostomy care; 
124.2      (G) quadriplegia; or 
124.3      (H) other comparable medical conditions or treatments the 
124.4   commissioner determines would otherwise require institutional 
124.5   care.  
124.6      (v) A recipient shall qualify as having Level I behavior if 
124.7   there is reasonable supporting evidence that the recipient 
124.8   exhibits, or that without supervision, observation, or 
124.9   redirection would exhibit, one or more of the following 
124.10  behaviors that cause, or have the potential to cause: 
124.11     (A) injury to the recipient's own body; 
124.12     (B) physical injury to other people; or 
124.13     (C) destruction of property. 
124.14     (vi) Time authorized for personal care relating to Level I 
124.15  behavior in subclause (v), items (A) to (C), shall be based on 
124.16  the predictability, frequency, and amount of intervention 
124.17  required. 
124.18     (vii) A recipient shall qualify as having Level II behavior 
124.19  if the recipient exhibits on a daily basis one or more of the 
124.20  following behaviors that interfere with the completion of 
124.21  personal care services under subdivision 4, paragraph (a): 
124.22     (A) unusual or repetitive habits; 
124.23     (B) withdrawn behavior; or 
124.24     (C) offensive behavior. 
124.25     (viii) A recipient with a home care rating of Level II 
124.26  behavior in subclause (vii), items (A) to (C), shall be rated as 
124.27  comparable to a recipient with complex medical needs under 
124.28  subclause (iv).  If a recipient has both complex medical needs 
124.29  and Level II behavior, the home care rating shall be the next 
124.30  complex category up to the maximum rating under subclause (i), 
124.31  item (B). 
124.32     (3)  [PRIVATE DUTY NURSING SERVICES.] All private duty 
124.33  nursing services shall be prior authorized by the commissioner 
124.34  or the commissioner's designee.  Prior authorization for private 
124.35  duty nursing services shall be based on medical necessity and 
124.36  cost-effectiveness when compared with alternative care options.  
125.1   The commissioner may authorize medically necessary private duty 
125.2   nursing services in quarter-hour units when: 
125.3      (i) the recipient requires more individual and continuous 
125.4   care than can be provided during a nurse visit; or 
125.5      (ii) the cares are outside of the scope of services that 
125.6   can be provided by a home health aide or personal care assistant.
125.7      The commissioner may authorize: 
125.8      (A) up to two times the average amount of direct care hours 
125.9   provided in nursing facilities statewide for case mix 
125.10  classification "K" as established by the annual cost report 
125.11  submitted to the department by nursing facilities in May 1992; 
125.12     (B) private duty nursing in combination with other home 
125.13  care services up to the total cost allowed under clause (2); 
125.14     (C) up to 16 hours per day if the recipient requires more 
125.15  nursing than the maximum number of direct care hours as 
125.16  established in item (A) and the recipient meets the hospital 
125.17  admission criteria established under Minnesota Rules, parts 
125.18  9505.0500 to 9505.0540.  
125.19     The commissioner may authorize up to 16 hours per day of 
125.20  medically necessary private duty nursing services or up to 24 
125.21  hours per day of medically necessary private duty nursing 
125.22  services until such time as the commissioner is able to make a 
125.23  determination of eligibility for recipients who are 
125.24  cooperatively applying for home care services under the 
125.25  community alternative care program developed under section 
125.26  256B.49, or until it is determined by the appropriate regulatory 
125.27  agency that a health benefit plan is or is not required to pay 
125.28  for appropriate medically necessary health care services.  
125.29  Recipients or their representatives must cooperatively assist 
125.30  the commissioner in obtaining this determination.  Recipients 
125.31  who are eligible for the community alternative care program may 
125.32  not receive more hours of nursing under this section than would 
125.33  otherwise be authorized under section 256B.49. 
125.34     (4)  [VENTILATOR-DEPENDENT RECIPIENTS.] If the recipient is 
125.35  ventilator-dependent, the monthly medical assistance 
125.36  authorization for home care services shall not exceed what the 
126.1   commissioner would pay for care at the highest cost hospital 
126.2   designated as a long-term hospital under the Medicare program.  
126.3   For purposes of this clause, home care services means all 
126.4   services provided in the home that would be included in the 
126.5   payment for care at the long-term hospital.  
126.6   "Ventilator-dependent" means an individual who receives 
126.7   mechanical ventilation for life support at least six hours per 
126.8   day and is expected to be or has been dependent for at least 30 
126.9   consecutive days.  
126.10     (f)  [PRIOR AUTHORIZATION; TIME LIMITS.] The commissioner 
126.11  or the commissioner's designee shall determine the time period 
126.12  for which a prior authorization shall be effective.  If the 
126.13  recipient continues to require home care services beyond the 
126.14  duration of the prior authorization, the home care provider must 
126.15  request a new prior authorization.  Under no circumstances, 
126.16  other than the exceptions in paragraph (b), shall a prior 
126.17  authorization be valid prior to the date the commissioner 
126.18  receives the request or for more than 12 months.  A recipient 
126.19  who appeals a reduction in previously authorized home care 
126.20  services may continue previously authorized services, other than 
126.21  temporary services under paragraph (h), pending an appeal under 
126.22  section 256.045.  The commissioner must provide a detailed 
126.23  explanation of why the authorized services are reduced in amount 
126.24  from those requested by the home care provider.  
126.25     (g)  [APPROVAL OF HOME CARE SERVICES.] The commissioner or 
126.26  the commissioner's designee shall determine the medical 
126.27  necessity of home care services, the level of caregiver 
126.28  according to subdivision 2, and the institutional comparison 
126.29  according to this subdivision, the cost-effectiveness of 
126.30  services, and the amount, scope, and duration of home care 
126.31  services reimbursable by medical assistance, based on the 
126.32  assessment, primary payer coverage determination information as 
126.33  required, the service plan, the recipient's age, the cost of 
126.34  services, the recipient's medical condition, and diagnosis or 
126.35  disability.  The commissioner may publish additional criteria 
126.36  for determining medical necessity according to section 256B.04. 
127.1      (h)  [PRIOR AUTHORIZATION REQUESTS; TEMPORARY SERVICES.] 
127.2   The agency nurse, the independently enrolled private duty nurse, 
127.3   or county public health nurse may request a temporary 
127.4   authorization for home care services by telephone.  The 
127.5   commissioner may approve a temporary level of home care services 
127.6   based on the assessment, and service or care plan information, 
127.7   and primary payer coverage determination information as required.
127.8   Authorization for a temporary level of home care services 
127.9   including nurse supervision is limited to the time specified by 
127.10  the commissioner, but shall not exceed 45 days, unless extended 
127.11  because the county public health nurse has not completed the 
127.12  required assessment and service plan, or the commissioner's 
127.13  determination has not been made.  The level of services 
127.14  authorized under this provision shall have no bearing on a 
127.15  future prior authorization. 
127.16     (i)  [PRIOR AUTHORIZATION REQUIRED IN FOSTER CARE SETTING.] 
127.17  Home care services provided in an adult or child foster care 
127.18  setting must receive prior authorization by the department 
127.19  according to the limits established in paragraph (a). 
127.20     The commissioner may not authorize: 
127.21     (1) home care services that are the responsibility of the 
127.22  foster care provider under the terms of the foster care 
127.23  placement agreement and administrative rules.  Requests for home 
127.24  care services for recipients residing in a foster care setting 
127.25  must include the foster care placement agreement and 
127.26  determination of difficulty of care; 
127.27     (2) personal care services when the foster care license 
127.28  holder is also the personal care provider or personal care 
127.29  assistant unless the recipient can direct the recipient's own 
127.30  care, or case management is provided as required in section 
127.31  256B.0625, subdivision 19a; 
127.32     (3) personal care services when the responsible party is an 
127.33  employee of, or under contract with, or has any direct or 
127.34  indirect financial relationship with the personal care provider 
127.35  or personal care assistant, unless case management is provided 
127.36  as required in section 256B.0625, subdivision 19a; 
128.1      (4) home care services when the number of foster care 
128.2   residents is greater than four unless the county responsible for 
128.3   the recipient's foster placement made the placement prior to 
128.4   April 1, 1992, requests that home care services be provided, and 
128.5   case management is provided as required in section 256B.0625, 
128.6   subdivision 19a; or 
128.7      (5) home care services when combined with foster care 
128.8   payments, other than room and board payments that exceed the 
128.9   total amount that public funds would pay for the recipient's 
128.10  care in a medical institution. 
128.11     Sec. 30.  Minnesota Statutes 1996, section 256B.064, 
128.12  subdivision 1a, is amended to read: 
128.13     Subd. 1a.  [GROUNDS FOR MONETARY RECOVERY AND SANCTIONS 
128.14  AGAINST VENDORS.] The commissioner may seek monetary recovery 
128.15  and impose sanctions against vendors of medical care for any of 
128.16  the following:  fraud, theft, or abuse in connection with the 
128.17  provision of medical care to recipients of public assistance; a 
128.18  pattern of presentment of false or duplicate claims or claims 
128.19  for services not medically necessary; a pattern of making false 
128.20  statements of material facts for the purpose of obtaining 
128.21  greater compensation than that to which the vendor is legally 
128.22  entitled; suspension or termination as a Medicare vendor; and 
128.23  refusal to grant the state agency access during regular business 
128.24  hours to examine all records necessary to disclose the extent of 
128.25  services provided to program recipients; and any reason for 
128.26  which a vendor could be excluded from participation in the 
128.27  Medicare program under section 1128, 1128A, or 1866(b)(2) of the 
128.28  Social Security Act.  The determination of services not 
128.29  medically necessary may be made by the commissioner in 
128.30  consultation with a peer advisory task force appointed by the 
128.31  commissioner on the recommendation of appropriate professional 
128.32  organizations.  The task force expires as provided in section 
128.33  15.059, subdivision 5. 
128.34     Sec. 31.  Minnesota Statutes 1996, section 256B.064, 
128.35  subdivision 1c, is amended to read: 
128.36     Subd. 1c.  [METHODS OF MONETARY RECOVERY.] The commissioner 
129.1   may obtain monetary recovery for the conduct described in 
129.2   subdivision 1a by the following from a vendor who has been 
129.3   improperly paid either as a result of conduct described in 
129.4   subdivision 1a or as a result of a vendor or department error, 
129.5   regardless of whether the error was intentional.  The 
129.6   commissioner may obtain monetary recovery using methods, 
129.7   including but not limited to the following:  assessing and 
129.8   recovering money erroneously improperly paid and debiting from 
129.9   future payments any money erroneously improperly paid, except 
129.10  that.  Patterns need not be proven as a precondition to monetary 
129.11  recovery for of erroneous or false claims, duplicate claims, 
129.12  claims for services not medically necessary, or claims based on 
129.13  false statements.  The commissioner may shall charge interest on 
129.14  money to be recovered if the recovery is to be made by 
129.15  installment payments or debits.  The interest charged shall be 
129.16  the rate established by the commissioner of revenue under 
129.17  section 270.75.  
129.18     Sec. 32.  Minnesota Statutes 1996, section 256B.064, 
129.19  subdivision 2, is amended to read: 
129.20     Subd. 2.  [IMPOSITION OF MONETARY RECOVERY AND SANCTIONS.] 
129.21  (a) The commissioner shall determine monetary amounts to be 
129.22  recovered and the sanction to be imposed upon a vendor of 
129.23  medical care for conduct described by subdivision 1a.  Except in 
129.24  the case of a conviction for conduct described in subdivision 1a 
129.25  as provided in paragraph (b), neither a monetary recovery nor a 
129.26  sanction will be sought imposed by the commissioner without 
129.27  prior notice and an opportunity for a hearing, pursuant 
129.28  according to chapter 14, on the commissioner's proposed action, 
129.29  provided that the commissioner may suspend or reduce payment to 
129.30  a vendor of medical care, except a nursing home or convalescent 
129.31  care facility, after notice and prior to the hearing if in the 
129.32  commissioner's opinion that action is necessary to protect the 
129.33  public welfare and the interests of the program. 
129.34     (b) Except for a nursing home or convalescent care 
129.35  facility, the commissioner may withhold or reduce payments to a 
129.36  vendor of medical care without providing advance notice of such 
130.1   withholding or reduction if either of the following occurs: 
130.2      (1) the vendor is convicted of a crime involving the 
130.3   conduct described in subdivision 1a; or 
130.4      (2) the commissioner receives reliable evidence of fraud or 
130.5   willful misrepresentation by the vendor. 
130.6      (c) The commissioner must send notice of the withholding or 
130.7   reduction of payments under paragraph (b) within five days of 
130.8   taking such action.  The notice must: 
130.9      (1) state that payments are being withheld according to 
130.10  paragraph (b); 
130.11     (2) except in the case of a conviction for conduct 
130.12  described in subdivision 1a, state that the withholding is for a 
130.13  temporary period and cite the circumstances under which 
130.14  withholding will be terminated; 
130.15     (3) identify the types of claims to which the withholding 
130.16  applies; and 
130.17     (4) inform the vendor of the right to submit written 
130.18  evidence for consideration by the commissioner. 
130.19     The withholding or reduction of payments will not continue 
130.20  after the commissioner determines there is insufficient evidence 
130.21  of fraud or willful misrepresentation by the vendor, or after 
130.22  legal proceedings relating to the alleged fraud or willful 
130.23  misrepresentation are completed, unless the commissioner has 
130.24  sent notice of intention to impose monetary recovery or 
130.25  sanctions under paragraph (a). 
130.26     (d) Upon receipt of a notice under paragraph (a) that a 
130.27  monetary recovery or sanction is to be imposed, a vendor may 
130.28  request a contested case, as defined in section 14.02, 
130.29  subdivision 3, by filing with the commissioner a written request 
130.30  of appeal.  The appeal request must be received by the 
130.31  commissioner no later than 30 days after the date the 
130.32  notification of monetary recovery or sanction was mailed to the 
130.33  vendor.  The appeal request must specify: 
130.34     (1) each disputed item, the reason for the dispute, and an 
130.35  estimate of the dollar amount involved for each disputed item; 
130.36     (2) the computation that the vendor believes is correct; 
131.1      (3) the authority in statute or rule upon which the vendor 
131.2   relies for each disputed item; 
131.3      (4) the name and address of the person or entity with whom 
131.4   contacts may be made regarding the appeal; and 
131.5      (5) other information required by the commissioner. 
131.6      Sec. 33.  Minnesota Statutes 1996, section 256B.0911, 
131.7   subdivision 7, is amended to read: 
131.8      Subd. 7.  [REIMBURSEMENT FOR CERTIFIED NURSING FACILITIES.] 
131.9   (a) Medical assistance reimbursement for nursing facilities 
131.10  shall be authorized for a medical assistance recipient only if a 
131.11  preadmission screening has been conducted prior to admission or 
131.12  the local county agency has authorized an exemption.  Medical 
131.13  assistance reimbursement for nursing facilities shall not be 
131.14  provided for any recipient who the local screener has determined 
131.15  does not meet the level of care criteria for nursing facility 
131.16  placement or, if indicated, has not had a level II PASARR 
131.17  evaluation completed unless an admission for a recipient with 
131.18  mental illness is approved by the local mental health authority 
131.19  or an admission for a recipient with mental retardation or 
131.20  related condition is approved by the state mental retardation 
131.21  authority.  The county preadmission screening team may deny 
131.22  certified nursing facility admission using the level of care 
131.23  criteria established under section 144.0721 and deny medical 
131.24  assistance reimbursement for certified nursing facility care.  
131.25  Persons receiving care in a certified nursing facility or 
131.26  certified boarding care home who are reassessed by the 
131.27  commissioner of health according to section 144.0722 and 
131.28  determined to no longer meet the level of care criteria for a 
131.29  certified nursing facility or certified boarding care home may 
131.30  no longer remain a resident in the certified nursing facility or 
131.31  certified boarding care home and must be relocated to the 
131.32  community as provided under paragraphs (b), (c), and (d), if the 
131.33  persons were admitted on or after July 1, 1996 1997.  
131.34     (b) A resident who, upon reassessment, is determined to no 
131.35  longer meet the level of care criteria for a certified nursing 
131.36  facility or certified boarding care home is deemed to not need 
132.1   the services provided by a nursing facility.  Such a resident 
132.2   may not receive medical assistance payment for nursing facility 
132.3   or boarding care services and must be discharged according to 
132.4   this subdivision. 
132.5      A resident who is determined to no longer need nursing 
132.6   facility services may ask for a reconsideration of the 
132.7   resident's case mix and level of care assessment under section 
132.8   144.0722.  If reconsideration is not requested, the resident may 
132.9   not appeal the assessment.  If the resident is determined to not 
132.10  meet the level of care criteria for treatment in a nursing 
132.11  facility, the commissioner of human services shall notify the 
132.12  nursing facility that the resident's health has improved 
132.13  sufficiently so the resident no longer needs the services 
132.14  provided by a nursing facility and that the resident must be 
132.15  discharged within 60 days after the facility receives notice, 
132.16  regardless of the source of payment for the resident's care.  
132.17  The ground for discharge shall be that the resident's health has 
132.18  improved sufficiently so that the resident no longer needs the 
132.19  services of the nursing facility.  The nursing facility shall 
132.20  discharge the resident according to federal regulations that 
132.21  govern discharge of residents of certified nursing facilities.  
132.22  If the resident's care is paid for by medical assistance, the 
132.23  commissioner of human services must also notify the resident 
132.24  that medical assistance payment for the resident's nursing 
132.25  facility services will terminate 60 days after the resident 
132.26  receives the notice. 
132.27     (c) The resident may request, within 14 days of receiving 
132.28  notice of discharge or of termination of medical assistance 
132.29  payments, an assessment from the local screening team defined 
132.30  under section 256B.0911 to determine whether extraordinary 
132.31  circumstances as defined in section 144.0721, subdivision 3, 
132.32  exist.  The screening team must issue a written decision within 
132.33  ten days of the resident's request.  If the screening team finds 
132.34  that extraordinary circumstances exist, the resident need not be 
132.35  discharged and medical assistance payments shall not be 
132.36  discontinued on the resident's behalf. 
133.1      (d) A resident notified of discharge or of discontinuance 
133.2   of medical assistance payment under this section may appeal 
133.3   under section 256.045 within 30 days of receiving notice of 
133.4   discharge or of termination of medical assistance payments, or 
133.5   within 30 days of the screening team's decision that 
133.6   extraordinary circumstances do not exist, whichever is later.  
133.7   Medical assistance payments shall continue and the resident 
133.8   shall not be discharged until the commissioner of human services 
133.9   issues a decision on the appeal.  The nursing facility may 
133.10  participate in the hearing for the limited purpose of proving 
133.11  that the resident meets the level of care criteria.  If, after a 
133.12  hearing, the commissioner of human services determines either 
133.13  that the resident meets the level of care criteria for nursing 
133.14  facility services or that extraordinary circumstances as defined 
133.15  in section 144.0721, subdivision 3, exist, medical assistance 
133.16  shall not be terminated and the resident shall not be 
133.17  discharged.  A resident's appeal of discharge under this section 
133.18  may be appealed only under section 256.045 and not section 
133.19  144.135. 
133.20     (e) Persons receiving services under section 256B.0913, 
133.21  subdivisions 1 to 14, or 256B.0915 who are reassessed and found 
133.22  to not meet the level of care criteria for admission to a 
133.23  certified nursing facility or certified boarding care home may 
133.24  no longer receive these services if persons were admitted to the 
133.25  program on or after July 1, 1996 1997.  Reassessed individuals 
133.26  ineligible for services under section 256B.0913, subdivisions 1 
133.27  to 14, or 256B.0915, are entitled to an appeal under section 
133.28  256.045, subdivision 3.  The commissioner shall make a request 
133.29  to the health care financing administration for a waiver 
133.30  allowing screening team approval of Medicaid payments for 
133.31  certified nursing facility care.  An individual has a choice and 
133.32  makes the final decision between nursing facility placement and 
133.33  community placement after the screening team's recommendation, 
133.34  except as provided in paragraphs (b) and (c).  
133.35     (b) (f) The local county mental health authority or the 
133.36  state mental retardation authority under Public Law Numbers 
134.1   100-203 and 101-508 may prohibit admission to a nursing 
134.2   facility, if the individual does not meet the nursing facility 
134.3   level of care criteria or needs specialized services as defined 
134.4   in Public Law Numbers 100-203 and 101-508.  For purposes of this 
134.5   section, "specialized services" for a person with mental 
134.6   retardation or a related condition means "active treatment" as 
134.7   that term is defined in Code of Federal Regulations, title 42, 
134.8   section 483.440(a)(1). 
134.9      (c) (g) Upon the receipt by the commissioner of approval by 
134.10  the Secretary of Health and Human Services of the waiver 
134.11  requested under paragraph (a), the local screener shall deny 
134.12  medical assistance reimbursement for nursing facility care for 
134.13  an individual whose long-term care needs can be met in a 
134.14  community-based setting and whose cost of community-based home 
134.15  care services is less than 75 percent of the average payment for 
134.16  nursing facility care for that individual's case mix 
134.17  classification, and who is either: 
134.18     (i) a current medical assistance recipient being screened 
134.19  for admission to a nursing facility; or 
134.20     (ii) an individual who would be eligible for medical 
134.21  assistance within 180 days of entering a nursing facility and 
134.22  who meets a nursing facility level of care. 
134.23     (d) (h) Appeals from the screening team's recommendation or 
134.24  the county agency's final decision shall be made according to 
134.25  section 256.045, subdivision 3. 
134.26     Sec. 34.  Minnesota Statutes 1996, section 256B.0913, 
134.27  subdivision 7, is amended to read: 
134.28     Subd. 7.  [CASE MANAGEMENT.] The lead agency shall appoint 
134.29  a social worker from the county agency or a registered nurse 
134.30  from the county public health nursing service of the local board 
134.31  of health to be the case manager for any person receiving 
134.32  services funded by the alternative care program. Providers of 
134.33  case management services for persons receiving services funded 
134.34  by the alternative care program must meet the qualification 
134.35  requirements and standards specified in section 256B.0915, 
134.36  subdivision 1b.  The case manager must ensure the health and 
135.1   safety of the individual client and is responsible for the 
135.2   cost-effectiveness of the alternative care individual care 
135.3   plan.  The county may allow a case manager employed by the 
135.4   county to delegate certain aspects of the case management 
135.5   activity to another individual employed by the county provided 
135.6   there is oversight of the individual by the case manager.  The 
135.7   case manager may not delegate those aspects which require 
135.8   professional judgment including assessments, reassessments, and 
135.9   care plan development. 
135.10     Sec. 35.  Minnesota Statutes 1996, section 256B.0913, 
135.11  subdivision 10, is amended to read: 
135.12     Subd. 10.  [ALLOCATION FORMULA.] (a) The alternative care 
135.13  appropriation for fiscal years 1992 and beyond shall cover only 
135.14  180-day eligible clients. 
135.15     (b) Prior to July 1 of each year, the commissioner shall 
135.16  allocate to county agencies the state funds available for 
135.17  alternative care for persons eligible under subdivision 2.  The 
135.18  allocation for fiscal year 1992 shall be calculated using a base 
135.19  that is adjusted to exclude the medical assistance share of 
135.20  alternative care expenditures.  The adjusted base is calculated 
135.21  by multiplying each county's allocation for fiscal year 1991 by 
135.22  the percentage of county alternative care expenditures for 
135.23  180-day eligible clients.  The percentage is determined based on 
135.24  expenditures for services rendered in fiscal year 1989 or 
135.25  calendar year 1989, whichever is greater. 
135.26     (c) If the county expenditures for 180-day eligible clients 
135.27  are 95 percent or more of its adjusted base allocation, the 
135.28  allocation for the next fiscal year is 100 percent of the 
135.29  adjusted base, plus inflation to the extent that inflation is 
135.30  included in the state budget. 
135.31     (d) If the county expenditures for 180-day eligible clients 
135.32  are less than 95 percent of its adjusted base allocation, the 
135.33  allocation for the next fiscal year is the adjusted base 
135.34  allocation less the amount of unspent funds below the 95 percent 
135.35  level. 
135.36     (e) For fiscal year 1992 only, a county may receive an 
136.1   increased allocation if annualized service costs for the month 
136.2   of May 1991 for 180-day eligible clients are greater than the 
136.3   allocation otherwise determined.  A county may apply for this 
136.4   increase by reporting projected expenditures for May to the 
136.5   commissioner by June 1, 1991.  The amount of the allocation may 
136.6   exceed the amount calculated in paragraph (b).  The projected 
136.7   expenditures for May must be based on actual 180-day eligible 
136.8   client caseload and the individual cost of clients' care plans.  
136.9   If a county does not report its expenditures for May, the amount 
136.10  in paragraph (c) or (d) shall be used. 
136.11     (f) Calculations for paragraphs (c) and (d) are to be made 
136.12  as follows:  for each county, the determination of expenditures 
136.13  shall be based on payments for services rendered from April 1 
136.14  through March 31 in the base year, to the extent that claims 
136.15  have been submitted by June 1 of that year.  Calculations for 
136.16  paragraphs (c) and (d) must also include the funds transferred 
136.17  to the consumer support grant program for clients who have 
136.18  transferred to that program from April 1 through March 31 in the 
136.19  base year.  
136.20     Sec. 36.  Minnesota Statutes 1996, section 256B.0913, 
136.21  subdivision 15, is amended to read: 
136.22     Subd. 15.  [SERVICE ALLOWANCE FUND AVAILABILITY.] (a) 
136.23  Effective July 1, 1996 1997, the commissioner may use 
136.24  alternative care funds for services to high function class A 
136.25  persons as defined in section 144.0721, subdivision 3, clause 
136.26  (2).  The county alternative care grant allocation will be 
136.27  supplemented with a special allocation amount based on the 
136.28  projected number of eligible high function class A's and 
136.29  computed on the basis of $240 per month per projected eligible 
136.30  person.  Individual monthly expenditures under the service 
136.31  allowance option are permitted to be either greater or less than 
136.32  the amount of $240 per month based on individual need.  County 
136.33  allocations shall be adjusted periodically based on the actual 
136.34  provision of services to high function class A persons.  The 
136.35  allocation will be distributed by a population based formula and 
136.36  shall not exceed the proportion of projected savings made 
137.1   available under section 144.0721, subdivision 3. 
137.2      (b) Counties shall have the option of providing services, 
137.3   cash service allowances, vouchers, or a combination of these 
137.4   options to high function class A persons defined in section 
137.5   144.0721, subdivision 3, clause (2).  High function class A 
137.6   persons may choose services from among the categories of 
137.7   services listed under subdivision 5, except for case management 
137.8   services. 
137.9      (c) If the special allocation under this section to a 
137.10  county is not sufficient to serve all persons who qualify 
137.11  for alternative care services the service allowance, the county 
137.12  is not required to provide any alternative care services to a 
137.13  high function class A person but shall establish a waiting list 
137.14  to provide services as special allocation funding becomes 
137.15  available. 
137.16     Sec. 37.  Minnesota Statutes 1996, section 256B.0915, 
137.17  subdivision 1b, is amended to read: 
137.18     Subd. 1b.  [PROVIDER QUALIFICATIONS AND STANDARDS.] The 
137.19  commissioner must enroll qualified providers of elderly case 
137.20  management services under the home and community-based waiver 
137.21  for the elderly under section 1915(c) of the Social Security 
137.22  Act.  The enrollment process shall ensure the provider's ability 
137.23  to meet the qualification requirements and standards in this 
137.24  subdivision and other federal and state requirements of this 
137.25  service.  An elderly case management provider is an enrolled 
137.26  medical assistance provider who is determined by the 
137.27  commissioner to have all of the following characteristics: 
137.28     (1) the legal authority for alternative care program 
137.29  administration under section 256B.0913; 
137.30     (2) the demonstrated capacity and experience to provide the 
137.31  components of case management to coordinate and link community 
137.32  resources needed by the eligible population; 
137.33     (3) (2) administrative capacity and experience in serving 
137.34  the target population for whom it will provide services and in 
137.35  ensuring quality of services under state and federal 
137.36  requirements; 
138.1      (4) the legal authority to provide preadmission screening 
138.2   under section 256B.0911, subdivision 4; 
138.3      (5) (3) a financial management system that provides 
138.4   accurate documentation of services and costs under state and 
138.5   federal requirements; 
138.6      (6) (4) the capacity to document and maintain individual 
138.7   case records under state and federal requirements; and 
138.8      (7) (5) the county may allow a case manager employed by the 
138.9   county to delegate certain aspects of the case management 
138.10  activity to another individual employed by the county provided 
138.11  there is oversight of the individual by the case manager.  The 
138.12  case manager may not delegate those aspects which require 
138.13  professional judgment including assessments, reassessments, and 
138.14  care plan development. 
138.15     Sec. 38.  Minnesota Statutes 1996, section 256B.0915, is 
138.16  amended by adding a subdivision to read: 
138.17     Subd. 7.  [PREPAID ELDERLY WAIVER SERVICES.] An individual 
138.18  for whom a prepaid health plan is liable for nursing home 
138.19  services or elderly waiver services according to section 
138.20  256B.69, subdivision 6a, is not eligible to receive 
138.21  county-administered elderly waiver services under this section. 
138.22     Sec. 39.  Minnesota Statutes 1996, section 256B.0917, 
138.23  subdivision 7, is amended to read: 
138.24     Subd. 7.  [CONTRACT.] (a) The commissioner of human 
138.25  services shall execute a contract with an organization 
138.26  experienced in establishing and operating community-based 
138.27  programs that have used the principles listed in subdivision 8, 
138.28  paragraph (b), in order to meet the independent living and 
138.29  health needs of senior citizens aged 65 and over and provide 
138.30  community-based long-term care for senior citizens in their 
138.31  homes Living at Home/Block Nurse Program, Inc. (LAH/BN, Inc.).  
138.32  The organization contract shall require LAH/BN, Inc. to: 
138.33     (1) assist the commissioner in developing develop criteria 
138.34  for and in awarding award grants to establish community-based 
138.35  organizations that will implement living-at-home/block nurse 
138.36  programs throughout the state; 
139.1      (2) assist the commissioner in awarding award grants to 
139.2   enable current living-at-home/block nurse programs to continue 
139.3   to implement the combined living-at-home/block nurse program 
139.4   model; 
139.5      (3) serve as a state technical assistance center to assist 
139.6   and coordinate the living-at-home/block nurse programs 
139.7   established; and 
139.8      (4) develop the implementation plan required by subdivision 
139.9   10 manage contracts with individual living-at-home/block nurse 
139.10  programs. 
139.11     (b) The contract shall be effective July 1, 1997, and 
139.12  section 16B.17 shall not apply. 
139.13     Sec. 40.  Minnesota Statutes 1996, section 256B.0917, 
139.14  subdivision 8, is amended to read: 
139.15     Subd. 8.  [LIVING-AT-HOME/BLOCK NURSE PROGRAM GRANT.] (a) 
139.16  The commissioner, in cooperation with the organization awarded 
139.17  the contract under subdivision 7, shall develop and administer a 
139.18  grant program to establish or expand up to 15 46 community-based 
139.19  organizations that will implement living-at-home/block nurse 
139.20  programs that are designed to enable senior citizens to live as 
139.21  independently as possible in their homes and in their 
139.22  communities.  At least seven one-half of the programs must be in 
139.23  counties outside the seven-county metropolitan area.  The 
139.24  living-at-home/block nurse program funds shall be available to 
139.25  the four to six SAIL projects established under this section. 
139.26  Nonprofit organizations and units of local government are 
139.27  eligible to apply for grants to establish the community 
139.28  organizations that will implement living-at-home/block nurse 
139.29  programs.  In awarding grants, the commissioner organization 
139.30  awarded the contract under subdivision 7 shall give preference 
139.31  to nonprofit organizations and units of local government from 
139.32  communities that: 
139.33     (1) have high nursing home occupancy rates; 
139.34     (2) have a shortage of health care professionals; and 
139.35     (3) are located in counties adjacent to, or are located in, 
139.36  counties with existing living-at-home/block nurse programs; and 
140.1      (4) meet other criteria established by the commissioner 
140.2   LAH/BN, Inc., in consultation with the organization under 
140.3   contract commissioner. 
140.4      (b) Grant applicants must also meet the following criteria: 
140.5      (1) the local community demonstrates a readiness to 
140.6   establish a community model of care, including the formation of 
140.7   a board of directors, advisory committee, or similar group, of 
140.8   which at least two-thirds is comprised of community citizens 
140.9   interested in community-based care for older persons; 
140.10     (2) the program has sponsorship by a credible, 
140.11  representative organization within the community; 
140.12     (3) the program has defined specific geographic boundaries 
140.13  and defined its organization, staffing and coordination/delivery 
140.14  of services; 
140.15     (4) the program demonstrates a team approach to 
140.16  coordination and care, ensuring that the older adult 
140.17  participants, their families, the formal and informal providers 
140.18  are all part of the effort to plan and provide services; and 
140.19     (5) the program provides assurances that all community 
140.20  resources and funding will be coordinated and that other funding 
140.21  sources will be maximized, including a person's own resources. 
140.22     (c) Grant applicants must provide a minimum of five percent 
140.23  of total estimated development costs from local community 
140.24  funding.  Grants shall be awarded for two-year four-year 
140.25  periods, and the base amount shall not exceed $40,000 $80,000 
140.26  per applicant for the grant period.  The commissioner, in 
140.27  consultation with the organization under contract, may increase 
140.28  the grant amount for applicants from communities that have 
140.29  socioeconomic characteristics that indicate a higher level of 
140.30  need for development assistance.  Subject to the availability of 
140.31  funding, grants and grant renewals awarded or entered into on or 
140.32  after July 1, 1997, shall be renewed by LAH/BN, Inc. every four 
140.33  years, unless LAH/BN, Inc. determines that the grant recipient 
140.34  has not satisfactorily operated the living-at-home/block nurse 
140.35  program in compliance with the requirements of paragraphs (b) 
140.36  and (d).  Grants provided to living-at-home/block nurse programs 
141.1   under this paragraph may be used for both program development 
141.2   and the delivery of services. 
141.3      (d) Each living-at-home/block nurse program shall be 
141.4   designed by representatives of the communities being served to 
141.5   ensure that the program addresses the specific needs of the 
141.6   community residents.  The programs must be designed to: 
141.7      (1) incorporate the basic community, organizational, and 
141.8   service delivery principles of the living-at-home/block nurse 
141.9   program model; 
141.10     (2) provide senior citizens with registered nurse directed 
141.11  assessment, provision and coordination of health and personal 
141.12  care services on a sliding fee basis as an alternative to 
141.13  expensive nursing home care; 
141.14     (3) provide information, support services, homemaking 
141.15  services, counseling, and training for the client and family 
141.16  caregivers; 
141.17     (4) encourage the development and use of respite care, 
141.18  caregiver support, and in-home support programs, such as adult 
141.19  foster care and in-home adult day care; 
141.20     (5) encourage neighborhood residents and local 
141.21  organizations to collaborate in meeting the needs of senior 
141.22  citizens in their communities; 
141.23     (6) recruit, train, and direct the use of volunteers to 
141.24  provide informal services and other appropriate support to 
141.25  senior citizens and their caregivers; and 
141.26     (7) provide coordination and management of formal and 
141.27  informal services to senior citizens and their families using 
141.28  less expensive alternatives.  
141.29     Sec. 41.  Minnesota Statutes 1996, section 256B.431, 
141.30  subdivision 3f, is amended to read: 
141.31     Subd. 3f.  [PROPERTY COSTS AFTER JULY 1, 1988.] (a)  
141.32  [INVESTMENT PER BED LIMIT.] For the rate year beginning July 1, 
141.33  1988, the replacement-cost-new per bed limit must be $32,571 per 
141.34  licensed bed in multiple bedrooms and $48,857 per licensed bed 
141.35  in a single bedroom.  For the rate year beginning July 1, 1989, 
141.36  the replacement-cost-new per bed limit for a single bedroom must 
142.1   be $49,907 adjusted according to Minnesota Rules, part 
142.2   9549.0060, subpart 4, item A, subitem (1).  Beginning January 1, 
142.3   1990, the replacement-cost-new per bed limits must be adjusted 
142.4   annually as specified in Minnesota Rules, part 9549.0060, 
142.5   subpart 4, item A, subitem (1).  Beginning January 1, 1991, the 
142.6   replacement-cost-new per bed limits will be adjusted annually as 
142.7   specified in Minnesota Rules, part 9549.0060, subpart 4, item A, 
142.8   subitem (1), except that the index utilized will be the Bureau 
142.9   of the Census:  Composite fixed-weighted price index as 
142.10  published in the Survey of Current Business C30 Report, Value of 
142.11  New Construction Put in Place. 
142.12     (b)  [RENTAL FACTOR.] For the rate year beginning July 1, 
142.13  1988, the commissioner shall increase the rental factor as 
142.14  established in Minnesota Rules, part 9549.0060, subpart 8, item 
142.15  A, by 6.2 percent rounded to the nearest 100th percent for the 
142.16  purpose of reimbursing nursing facilities for soft costs and 
142.17  entrepreneurial profits not included in the cost valuation 
142.18  services used by the state's contracted appraisers.  For rate 
142.19  years beginning on or after July 1, 1989, the rental factor is 
142.20  the amount determined under this paragraph for the rate year 
142.21  beginning July 1, 1988. 
142.22     (c)  [OCCUPANCY FACTOR.] For rate years beginning on or 
142.23  after July 1, 1988, in order to determine property-related 
142.24  payment rates under Minnesota Rules, part 9549.0060, for all 
142.25  nursing facilities except those whose average length of stay in 
142.26  a skilled level of care within a nursing facility is 180 days or 
142.27  less, the commissioner shall use 95 percent of capacity days.  
142.28  For a nursing facility whose average length of stay in a skilled 
142.29  level of care within a nursing facility is 180 days or less, the 
142.30  commissioner shall use the greater of resident days or 80 
142.31  percent of capacity days but in no event shall the divisor 
142.32  exceed 95 percent of capacity days. 
142.33     (d)  [EQUIPMENT ALLOWANCE.] For rate years beginning on 
142.34  July 1, 1988, and July 1, 1989, the commissioner shall add ten 
142.35  cents per resident per day to each nursing facility's 
142.36  property-related payment rate.  The ten-cent property-related 
143.1   payment rate increase is not cumulative from rate year to rate 
143.2   year.  For the rate year beginning July 1, 1990, the 
143.3   commissioner shall increase each nursing facility's equipment 
143.4   allowance as established in Minnesota Rules, part 9549.0060, 
143.5   subpart 10, by ten cents per resident per day.  For rate years 
143.6   beginning on or after July 1, 1991, the adjusted equipment 
143.7   allowance must be adjusted annually for inflation as in 
143.8   Minnesota Rules, part 9549.0060, subpart 10, item E.  For the 
143.9   rate period beginning October 1, 1992, the equipment allowance 
143.10  for each nursing facility shall be increased by 28 percent.  For 
143.11  rate years beginning after June 30, 1993, the allowance must be 
143.12  adjusted annually for inflation. 
143.13     (e)  [POST CHAPTER 199 RELATED-ORGANIZATION DEBTS AND 
143.14  INTEREST EXPENSE.] For rate years beginning on or after July 1, 
143.15  1990, Minnesota Rules, part 9549.0060, subpart 5, item E, shall 
143.16  not apply to outstanding related organization debt incurred 
143.17  prior to May 23, 1983, provided that the debt was an allowable 
143.18  debt under Minnesota Rules, parts 9510.0010 to 9510.0480, the 
143.19  debt is subject to repayment through annual principal payments, 
143.20  and the nursing facility demonstrates to the commissioner's 
143.21  satisfaction that the interest rate on the debt was less than 
143.22  market interest rates for similar arms-length transactions at 
143.23  the time the debt was incurred.  If the debt was incurred due to 
143.24  a sale between family members, the nursing facility must also 
143.25  demonstrate that the seller no longer participates in the 
143.26  management or operation of the nursing facility.  Debts meeting 
143.27  the conditions of this paragraph are subject to all other 
143.28  provisions of Minnesota Rules, parts 9549.0010 to 9549.0080. 
143.29     (f)  [BUILDING CAPITAL ALLOWANCE FOR NURSING FACILITIES 
143.30  WITH OPERATING LEASES.] For rate years beginning on or after 
143.31  July 1, 1990, a nursing facility with operating lease costs 
143.32  incurred for the nursing facility's buildings shall receive its 
143.33  building capital allowance computed in accordance with Minnesota 
143.34  Rules, part 9549.0060, subpart 8.  
143.35     Sec. 42.  Minnesota Statutes 1996, section 256B.69, 
143.36  subdivision 2, is amended to read: 
144.1      Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
144.2   the following terms have the meanings given.  
144.3      (a) "Commissioner" means the commissioner of human services.
144.4   For the remainder of this section, the commissioner's 
144.5   responsibilities for methods and policies for implementing the 
144.6   project will be proposed by the project advisory committees and 
144.7   approved by the commissioner.  
144.8      (b) "Demonstration provider" means an individual, agency, 
144.9   organization, or group of these entities a health maintenance 
144.10  organization or community integrated service network authorized 
144.11  and operating under chapter 62D or 62N that participates in the 
144.12  demonstration project according to criteria, standards, methods, 
144.13  and other requirements established for the project and approved 
144.14  by the commissioner.  
144.15     (c) "Eligible individuals" means those persons eligible for 
144.16  medical assistance benefits as defined in sections 256B.055, 
144.17  256B.056, and 256B.06. 
144.18     (d) "Limitation of choice" means suspending freedom of 
144.19  choice while allowing eligible individuals to choose among the 
144.20  demonstration providers.  
144.21     (e) This paragraph supersedes paragraph (c) as long as the 
144.22  Minnesota health care reform waiver remains in effect.  When the 
144.23  waiver expires, this paragraph expires and the commissioner of 
144.24  human services shall publish a notice in the State Register and 
144.25  notify the revisor of statutes.  "Eligible individuals" means 
144.26  those persons eligible for medical assistance benefits as 
144.27  defined in sections 256B.055, 256B.056, and 256B.06.  
144.28  Notwithstanding sections 256B.055, 256B.056, and 256B.06, an 
144.29  individual who becomes ineligible for the program because of 
144.30  failure to submit income reports or recertification forms in a 
144.31  timely manner, shall remain enrolled in the prepaid health plan 
144.32  and shall remain eligible to receive medical assistance coverage 
144.33  through the last day of the month following the month in which 
144.34  the enrollee became ineligible for the medical assistance 
144.35  program. 
144.36     Sec. 43.  Minnesota Statutes 1996, section 256B.69, 
145.1   subdivision 3a, is amended to read: 
145.2      Subd. 3a.  [COUNTY AUTHORITY.] (a) The commissioner, when 
145.3   implementing the general assistance medical care, or medical 
145.4   assistance prepayment program within a county, must include the 
145.5   county board in the process of development, approval, and 
145.6   issuance of the request for proposals to provide services to 
145.7   eligible individuals within the proposed county.  County boards 
145.8   must be given reasonable opportunity to make recommendations 
145.9   regarding the development, issuance, review of responses, and 
145.10  changes needed in the request for proposals.  The commissioner 
145.11  must provide county boards the opportunity to review each 
145.12  proposal based on the identification of community needs under 
145.13  chapters 145A and 256E and county advocacy activities.  If a 
145.14  county board finds that a proposal does not address certain 
145.15  community needs, the county board and commissioner shall 
145.16  continue efforts for improving the proposal and network prior to 
145.17  the approval of the contract.  The county board shall make 
145.18  recommendations regarding the approval of local networks and 
145.19  their operations to ensure adequate availability and access to 
145.20  covered services.  The provider or health plan must respond 
145.21  directly to county advocates and the state prepaid medical 
145.22  assistance ombudsperson regarding service delivery and must be 
145.23  accountable to the state regarding contracts with medical 
145.24  assistance and general assistance medical care funds.  The 
145.25  county board may recommend a maximum number of participating 
145.26  health plans after considering the size of the enrolling 
145.27  population; ensuring adequate access and capacity; considering 
145.28  the client and county administrative complexity; and considering 
145.29  the need to promote the viability of locally developed health 
145.30  plans.  The county board or a single entity representing a group 
145.31  of county boards and the commissioner shall mutually select 
145.32  health plans for participation at the time of initial 
145.33  implementation of the prepaid medical assistance program in that 
145.34  county or group of counties and at the time of contract renewal. 
145.35  The commissioner shall also seek input for contract requirements 
145.36  from the county or single entity representing a group of county 
146.1   boards at each contract renewal and incorporate those 
146.2   recommendations into the contract negotiation process.  The 
146.3   commissioner, in conjunction with the county board, shall 
146.4   actively seek to develop a mutually agreeable timetable prior to 
146.5   the development of the request for proposal, but counties must 
146.6   agree to initial enrollment beginning on or before January 1, 
146.7   1999, in either the prepaid medical assistance and general 
146.8   assistance medical care programs or county-based purchasing 
146.9   under section 256B.692.  At least 90 days before enrollment in 
146.10  the medical assistance and general assistance medical care 
146.11  prepaid programs begins in a county in which the prepaid 
146.12  programs have not been established, the commissioner shall 
146.13  provide a report to the chairs of senate and house committees 
146.14  having jurisdiction over state health care programs which 
146.15  verifies that the commissioner complied with the requirements 
146.16  for county involvement that are specified in this subdivision. 
146.17     (b) The commissioner shall seek a federal waiver to allow a 
146.18  fee-for-service plan option to MinnesotaCare enrollees.  The 
146.19  commissioner shall develop an increase of the premium fees 
146.20  required under section 256.9356 up to 20 percent of the premium 
146.21  fees for the enrollees who elect the fee-for-service option.  
146.22  Prior to implementation, the commissioner shall submit this fee 
146.23  schedule to the chair and ranking minority member of the senate 
146.24  health care committee, the senate health care and family 
146.25  services funding division, the house of representatives health 
146.26  and human services committee, and the house of representatives 
146.27  health and human services finance division. 
146.28     (c) At the option of the county board, the board may 
146.29  develop contract requirements related to the achievement of 
146.30  local public health goals to meet the health needs of the 
146.31  medical assistance and general assistance medical care 
146.32  enrollees.  If the county board and the commissioner mutually 
146.33  agree to such requirements, the department shall include such 
146.34  requirements in all health plan contracts governing the prepaid 
146.35  medical assistance and general assistance medical care programs 
146.36  in that county at initial implementation of the program in that 
147.1   county and at the time of contract renewal.  The county board 
147.2   may participate in the enforcement of the contract provisions 
147.3   related to local public health goals. 
147.4      (d) For counties in which prepaid medical assistance and 
147.5   general assistance medical care programs have not been 
147.6   established, the commissioner shall not implement those programs 
147.7   if a county board submits acceptable and timely preliminary and 
147.8   final proposals under section 256B.692, until county-based 
147.9   purchasing is no longer operational in that county.  For 
147.10  counties in which prepaid medical assistance and general 
147.11  assistance medical care programs are in existence on or after 
147.12  September 1, 1997, the commissioner must terminate contracts 
147.13  with health plans according to section 256B.692, subdivision 5, 
147.14  if the county board submits and the commissioner accepts 
147.15  preliminary and final proposals according to that subdivision. 
147.16  However, in order to ensure quality of care, no individual 
147.17  currently enrolled with a prepaid health plan in a state 
147.18  prepayment program may be required to change to a county 
147.19  purchasing program until: 
147.20     (1) the commissioner of health has determined that the 
147.21  county purchasing program meets all requirements of section 
147.22  256B.692 and is capable of meeting all member health care needs; 
147.23  and 
147.24     (2) the individual has been given sufficient information to 
147.25  make an informed decision through an open enrollment process. 
147.26     (e) In the event that a county board or a single entity 
147.27  representing a group of county boards and the commissioner 
147.28  cannot reach agreement regarding:  (i) the selection of 
147.29  participating health plans in that county; (ii) contract 
147.30  requirements; or (iii) implementation and enforcement of county 
147.31  requirements including provisions regarding local public health 
147.32  goals, the commissioner shall resolve all disputes after taking 
147.33  into account the recommendations of a three-person mediation 
147.34  panel.  The panel shall be composed of one designee of the 
147.35  president of the association of Minnesota counties, one designee 
147.36  of the commissioner of human services, and one designee of the 
148.1   commissioner of health. 
148.2      Sec. 44.  Minnesota Statutes 1996, section 256B.69, 
148.3   subdivision 4, is amended to read: 
148.4      Subd. 4.  [LIMITATION OF CHOICE.] The commissioner shall 
148.5   develop criteria to determine when limitation of choice may be 
148.6   implemented in the experimental counties.  The criteria shall 
148.7   ensure that all eligible individuals in the county have 
148.8   continuing access to the full range of medical assistance 
148.9   services as specified in subdivision 6.  The commissioner shall 
148.10  exempt the following persons from participation in the project, 
148.11  in addition to those who do not meet the criteria for limitation 
148.12  of choice:  (1) persons eligible for medical assistance 
148.13  according to section 256B.055, subdivision 1; (2) persons 
148.14  eligible for medical assistance due to blindness or disability 
148.15  as determined by the social security administration or the state 
148.16  medical review team, unless:  (i) they are 65 years of age or 
148.17  older, or (ii) they reside in Itasca county or they reside in a 
148.18  county in which the commissioner conducts a pilot project under 
148.19  a waiver granted pursuant to section 1115 of the Social Security 
148.20  Act; (3) recipients who currently have private coverage through 
148.21  a health maintenance organization; (4) recipients who are 
148.22  eligible for medical assistance by spending down excess income 
148.23  for medical expenses other than the nursing facility per diem 
148.24  expense; (5) recipients who receive benefits under the Refugee 
148.25  Assistance Program, established under United States Code, title 
148.26  8, section 1522(e); (6) children who are both determined to be 
148.27  severely emotionally disturbed and receiving case management 
148.28  services according to section 256B.0625, subdivision 20; and (7) 
148.29  adults under age 65 who are both determined to be seriously and 
148.30  persistently mentally ill and received case management services 
148.31  according to section 256B.0625, subdivision 20.  Children under 
148.32  age 21 who are in foster placement may enroll in the project on 
148.33  an elective basis.  Individuals excluded under clauses (6) and 
148.34  (7) may choose to enroll on an elective basis.  The commissioner 
148.35  may allow persons with a one-month spenddown who are otherwise 
148.36  eligible to enroll to voluntarily enroll or remain enrolled, if 
149.1   they elect to prepay their monthly spenddown to the state.  
149.2   Effective July 1, 1999, the commissioner may require individuals 
149.3   who are eligible for medical assistance on a spenddown basis to 
149.4   enroll in the prepaid medical assistance program and may require 
149.5   that the spenddown amount be paid to the state, county, or 
149.6   health plan as a condition of eligibility for medical 
149.7   assistance.  The commissioner shall request any necessary 
149.8   federal authority to require the enrollment of individuals with 
149.9   spenddowns into the prepaid medical assistance demonstration 
149.10  project.  Beginning on or after July 1, 1997, the commissioner 
149.11  may require those individuals to enroll in the prepaid medical 
149.12  assistance program who otherwise would have been excluded under 
149.13  clauses (1) and (3) and under Minnesota Rules, part 9500.1452, 
149.14  subpart 2, items H, K, and L.  Before limitation of choice is 
149.15  implemented, eligible individuals shall be notified and after 
149.16  notification, shall be allowed to choose only among 
149.17  demonstration providers.  The commissioner may assign an 
149.18  individual with private coverage through a health maintenance 
149.19  organization, to the same health maintenance organization for 
149.20  medical assistance coverage, if the health maintenance 
149.21  organization is under contract for medical assistance in the 
149.22  individual's county of residence.  After initially choosing a 
149.23  provider, the recipient is allowed to change that choice only at 
149.24  specified times as allowed by the commissioner.  If a 
149.25  demonstration provider ends participation in the project for any 
149.26  reason, a recipient enrolled with that provider must select a 
149.27  new provider but may change providers without cause once more 
149.28  within the first 60 days after enrollment with the second 
149.29  provider. 
149.30     Sec. 45.  Minnesota Statutes 1996, section 256B.69, 
149.31  subdivision 5, is amended to read: 
149.32     Subd. 5.  [PROSPECTIVE PER CAPITA PAYMENT.] The 
149.33  commissioner shall establish the method and amount of payments 
149.34  for services.  The commissioner shall annually contract with 
149.35  demonstration providers to provide services consistent with 
149.36  these established methods and amounts for payment.  
150.1   Notwithstanding section 62D.02, subdivision 1, payments for 
150.2   services rendered as part of the project may be made to 
150.3   providers that are not licensed health maintenance organizations 
150.4   on a risk-based, prepaid capitation basis.  
150.5      If allowed by the commissioner, a demonstration provider 
150.6   may contract with an insurer, health care provider, nonprofit 
150.7   health service plan corporation, or the commissioner, to provide 
150.8   insurance or similar protection against the cost of care 
150.9   provided by the demonstration provider or to provide coverage 
150.10  against the risks incurred by demonstration providers under this 
150.11  section.  The recipients enrolled with a demonstration provider 
150.12  are a permissible group under group insurance laws and chapter 
150.13  62C, the Nonprofit Health Service Plan Corporations Act.  Under 
150.14  this type of contract, the insurer or corporation may make 
150.15  benefit payments to a demonstration provider for services 
150.16  rendered or to be rendered to a recipient.  Any insurer or 
150.17  nonprofit health service plan corporation licensed to do 
150.18  business in this state is authorized to provide this insurance 
150.19  or similar protection.  
150.20     Payments to providers participating in the project are 
150.21  exempt from the requirements of sections 256.966 and 256B.03, 
150.22  subdivision 2.  The commissioner shall complete development of 
150.23  capitation rates for payments before delivery of services under 
150.24  this section is begun.  For payments made during calendar year 
150.25  1990 and later years, the commissioner shall contract with an 
150.26  independent actuary to establish prepayment rates. 
150.27     By January 15, 1996, the commissioner shall report to the 
150.28  legislature on the methodology used to allocate to participating 
150.29  counties available administrative reimbursement for advocacy and 
150.30  enrollment costs.  The report shall reflect the commissioner's 
150.31  judgment as to the adequacy of the funds made available and of 
150.32  the methodology for equitable distribution of the funds.  The 
150.33  commissioner must involve participating counties in the 
150.34  development of the report. 
150.35     Sec. 46.  Minnesota Statutes 1996, section 256B.69, 
150.36  subdivision 5b, is amended to read: 
151.1      Subd. 5b.  [PROSPECTIVE REIMBURSEMENT RATES.] For prepaid 
151.2   medical assistance and general assistance medical care program 
151.3   contract rates set by the commissioner under subdivision 5 and 
151.4   effective on or after January 1, 1997, through December 31, 
151.5   1998, capitation rates for nonmetropolitan counties shall on a 
151.6   weighted average be no less than 85 87 percent of the capitation 
151.7   rates for metropolitan counties, excluding Hennepin county.  The 
151.8   commissioner shall make a pro rata adjustment in capitation 
151.9   rates paid to counties other than nonmetropolitan counties in 
151.10  order to make this provision budget neutral.  
151.11     Sec. 47.  Minnesota Statutes 1996, section 256B.69, 
151.12  subdivision 6, is amended to read: 
151.13     Subd. 6.  [SERVICE DELIVERY.] (a) Each demonstration 
151.14  provider shall be responsible for the health care coordination 
151.15  for eligible individuals.  Demonstration providers:  
151.16     (1) shall authorize and arrange for the provision of all 
151.17  needed health services including but not limited to the full 
151.18  range of services listed in sections 256B.02, subdivision 8, and 
151.19  256B.0625, except dental services provided under section 
151.20  256B.037, in order to ensure appropriate health care is 
151.21  delivered to enrollees; 
151.22     (2) shall accept the prospective, per capita payment from 
151.23  the commissioner in return for the provision of comprehensive 
151.24  and coordinated health care services for eligible individuals 
151.25  enrolled in the program; 
151.26     (3) may contract with other health care and social service 
151.27  practitioners to provide services to enrollees; and 
151.28     (4) shall institute recipient grievance procedures 
151.29  according to the method established by the project, utilizing 
151.30  applicable requirements of chapter 62D.  Disputes not resolved 
151.31  through this process shall be appealable to the commissioner as 
151.32  provided in subdivision 11.  
151.33     (b) Demonstration providers must comply with the standards 
151.34  for claims settlement under section 72A.201, subdivisions 4, 5, 
151.35  7, and 8, when contracting with other health care and social 
151.36  service practitioners to provide services to enrollees.  A 
152.1   demonstration provider must pay a clean claim, as defined in 
152.2   Code of Federal Regulations, title 42, section 447.45(b), within 
152.3   30 business days of the date of acceptance of the claim.  
152.4      Sec. 48.  Minnesota Statutes 1996, section 256B.69, is 
152.5   amended by adding a subdivision to read: 
152.6      Subd. 6a.  [NURSING HOME SERVICES.] (a) Notwithstanding 
152.7   Minnesota Rules, part 9500.1457, subpart 1, item B, nursing 
152.8   facility services as defined in section 256B.0625, subdivision 
152.9   2, which are provided in a nursing facility certified by the 
152.10  Minnesota department of health for services provided and 
152.11  eligible for payment under Medicaid, shall be covered under the 
152.12  prepaid medical assistance program for individuals who are not 
152.13  residing in a nursing facility at the time of enrollment in the 
152.14  prepaid medical assistance program.  Liability for coverage of 
152.15  nursing facility services by a participating health plan is 
152.16  limited to 365 days for any person enrolled under the prepaid 
152.17  medical assistance program. 
152.18     (b) For individuals enrolled in the Minnesota senior health 
152.19  options project authorized under subdivision 23, nursing 
152.20  facility services shall be covered according to the terms and 
152.21  conditions of the federal waiver governing that demonstration 
152.22  project. 
152.23     Sec. 49.  Minnesota Statutes 1996, section 256B.69, is 
152.24  amended by adding a subdivision to read: 
152.25     Subd. 6b.  [ELDERLY WAIVER SERVICES.] Notwithstanding 
152.26  Minnesota Rules, part 9500.1457, subpart 1, item C, elderly 
152.27  waiver services shall be covered under the prepaid medical 
152.28  assistance program for all individuals who are eligible 
152.29  according to section 256B.0915.  For individuals enrolled in the 
152.30  Minnesota senior health options project authorized under 
152.31  subdivision 23, elderly waiver services shall be covered 
152.32  according to the terms and conditions of the federal waiver 
152.33  governing that demonstration project.  
152.34     Sec. 50.  [256B.692] [COUNTY-BASED PURCHASING.] 
152.35     Subdivision 1.  [IN GENERAL.] County boards or groups of 
152.36  county boards may elect to purchase or provide health care 
153.1   services on behalf of persons eligible for medical assistance 
153.2   and general assistance medical care who would otherwise be 
153.3   required to or may elect to participate in the prepaid medical 
153.4   assistance or prepaid general assistance medical care programs, 
153.5   according to sections 256B.69 and 256D.03.  Counties that elect 
153.6   to purchase or provide health care under this section must 
153.7   provide all services included in prepaid managed care programs 
153.8   according to sections 256B.69, subdivisions 1 to 22, and 
153.9   256D.03.  County-based purchasing under this section is governed 
153.10  by section 256B.69, unless otherwise provided for under this 
153.11  section. 
153.12     Subd. 2.  [DUTIES OF THE COMMISSIONER OF HEALTH.] 
153.13  Notwithstanding chapters 62D and 62N, a county that elects to 
153.14  purchase medical assistance and general assistance medical care 
153.15  in return for a fixed sum without regard to the frequency or 
153.16  extent of services furnished to any particular enrollee is not 
153.17  required to obtain a certificate of authority under chapter 62D 
153.18  or 62N.  A county that elects to purchase medical assistance and 
153.19  general assistance medical care services under this section must 
153.20  satisfy the commissioner of health that the requirements of 
153.21  chapter 62D, applicable to health maintenance organizations, or 
153.22  chapter 62N, applicable to community integrated service 
153.23  networks, will be met.  A county must also assure the 
153.24  commissioner of health that the requirements of section 72A.201 
153.25  will be met.  All enforcement and rulemaking powers available 
153.26  under chapters 62D and 62N are hereby granted to the 
153.27  commissioner of health with respect to counties that purchase 
153.28  medical assistance and general assistance medical care services 
153.29  under this section. 
153.30     Subd. 3.  [REQUIREMENTS OF THE COUNTY BOARD.] A county 
153.31  board that intends to purchase or provide health care under this 
153.32  section, which may include purchasing all or part of these 
153.33  services from health plans or individual providers on a 
153.34  fee-for-service basis, or providing these services directly, 
153.35  must demonstrate the ability to follow and agree to the 
153.36  following requirements: 
154.1      (1) purchase all covered services for a fixed payment from 
154.2   the state that does not exceed the estimated state and federal 
154.3   cost that would have occurred under the prepaid medical 
154.4   assistance and general assistance medical care programs; 
154.5      (2) ensure that covered services are accessible to all 
154.6   enrollees and that enrollees have a reasonable choice of 
154.7   providers, as well as health plans or networks, when possible.  
154.8   If the county is also a provider of service, the county board 
154.9   shall develop a process to ensure that providers employed by the 
154.10  county are not the sole referral source and are not the sole 
154.11  provider of health care services, if other providers which meet 
154.12  the same quality and cost requirements are available; 
154.13     (3) issue payments to participating vendors or networks in 
154.14  a timely manner; 
154.15     (4) establish a process to ensure and improve the quality 
154.16  of care provided; 
154.17     (5) provide appropriate quality and other required data in 
154.18  a format required by the state; 
154.19     (6) provide a system for advocacy, enrollee protection, and 
154.20  complaints and appeals that is independent of care providers or 
154.21  other risk bearers and complies with section 256B.69; 
154.22     (7) for counties within the seven-county metropolitan area, 
154.23  ensure that the implementation and operation of the Minnesota 
154.24  senior health options demonstration project, authorized under 
154.25  section 256B.69, subdivision 23, will not be impeded; 
154.26     (8) ensure that all recipients that are enrolled in the 
154.27  prepaid medical assistance or general assistance medical care 
154.28  program will be transferred to county-based purchasing without 
154.29  utilizing the department's fee-for-service claims payment 
154.30  system; and 
154.31     (9) ensure that the state and the medical assistance and 
154.32  general assistance medical care recipients shall be held 
154.33  harmless for the payment of obligations incurred by the county 
154.34  if the county, or a health plan providing services on behalf of 
154.35  the county, or a provider participating in county purchasing, 
154.36  becomes insolvent and the state has made the payments due to the 
155.1   county under this section. 
155.2      Subd. 4.  [PAYMENTS TO COUNTIES.] The commissioner shall 
155.3   pay counties that are purchasing or providing health care under 
155.4   this section a per capita payment for all enrolled recipients.  
155.5   Payments shall not exceed payments that otherwise would have 
155.6   been paid to health plans under medical assistance and general 
155.7   assistance medical care for that county or region.  This payment 
155.8   is in addition to any administrative allocation to counties for 
155.9   education, enrollment, and advocacy.  The state of Minnesota and 
155.10  the United States Department of Health and Human Services are 
155.11  not liable for any costs incurred by a county that exceed the 
155.12  payments to the county made under this subdivision.  A county 
155.13  whose costs exceed the payments made by the state, or any 
155.14  affected enrollees or creditors of that county, shall have no 
155.15  rights under chapter 61B or section 62D.181.  A county may 
155.16  assign risk for the cost of care to a third party. 
155.17     Subd. 5.  [COUNTY PROPOSALS.] (a) On or before September 1, 
155.18  1997, a county board that wishes to purchase or provide health 
155.19  care under this section must submit a preliminary proposal that 
155.20  substantially demonstrates the county's ability to meet all the 
155.21  requirements of this section in response to criteria for 
155.22  proposals issued by the department on or before July 1, 1997.  
155.23  The county board must submit a final proposal on or before July 
155.24  1, 1998, that demonstrates the ability to meet all the 
155.25  requirements of this section, including beginning enrollment on 
155.26  January 1, 1999.  
155.27     Counties submitting preliminary proposals must establish a 
155.28  local planning process that involves input from medical 
155.29  assistance and general assistance medical care recipients, 
155.30  recipient advocates, providers, and representatives of local 
155.31  school districts, labor, and tribal government, to advise on the 
155.32  development of a final proposal and its implementation. 
155.33     (b) After January 1, 1999, for a county in which the 
155.34  prepaid medical assistance program is in existence, the county 
155.35  board must submit a preliminary proposal at least 15 months 
155.36  prior to termination of health plan contracts in that county and 
156.1   a final proposal six months prior to the health plan contract 
156.2   termination date in order to begin enrollment after the 
156.3   termination.  Nothing in this section shall impede or delay 
156.4   implementation or continuation of the prepaid medical assistance 
156.5   and general assistance medical care programs in counties for 
156.6   which the board does not submit a proposal, or submits a 
156.7   proposal that is not in compliance with this section. 
156.8      Subd. 6.  [COMMISSIONER'S AUTHORITY.] The commissioner may: 
156.9      (a) reject any preliminary or final proposal that 
156.10  substantially fails to meet the requirements of this section, or 
156.11  that the commissioner determines would substantially impair the 
156.12  state's ability to purchase health care services in other areas 
156.13  of the state, or would substantially impair the implementation 
156.14  and operation of the Minnesota senior health options 
156.15  demonstration project authorized under section 256B.69, 
156.16  subdivision 23; and 
156.17     (b) assume operation of a county's purchasing of health 
156.18  care for enrollees in medical assistance and general assistance 
156.19  medical care in the event that the contract with the county is 
156.20  terminated. 
156.21     Subd. 7.  [DISPUTE RESOLUTION.] In the event the 
156.22  commissioner rejects a proposal under subdivision 6, the county 
156.23  board may request the recommendation of a three-person mediation 
156.24  panel.  The commissioner shall resolve all disputes after taking 
156.25  into account the recommendations of the mediation panel.  The 
156.26  panel shall be composed of one designee of the president of the 
156.27  association of Minnesota counties, one designee of the 
156.28  commissioner of human services, and one designee of the 
156.29  commissioner of health. 
156.30     Subd. 8.  [APPEALS.] A county that conducts county-based 
156.31  purchasing shall be considered to be a prepaid health plan for 
156.32  purposes of section 256.045. 
156.33     Subd. 9.  [FEDERAL APPROVAL.] The commissioner shall 
156.34  request any federal waivers and federal approval required to 
156.35  implement this section.  County-based purchasing shall not be 
156.36  implemented without obtaining all federal approval required to 
157.1   maintain federal matching funds in the medical assistance 
157.2   program. 
157.3      Subd. 10.  [REPORT TO THE LEGISLATURE.] The commissioner 
157.4   shall submit a report to the legislature by February 1, 1998, on 
157.5   the preliminary proposals submitted on or before September 1, 
157.6   1997. 
157.7      Sec. 51.  Minnesota Statutes 1996, section 256D.03, 
157.8   subdivision 3, is amended to read: 
157.9      Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
157.10  (a) General assistance medical care may be paid for any person 
157.11  who is not eligible for medical assistance under chapter 256B, 
157.12  including eligibility for medical assistance based on a 
157.13  spenddown of excess income according to section 256B.056, 
157.14  subdivision 5, and: 
157.15     (1) who is receiving assistance under section 256D.05, or 
157.16  who is having a payment made on the person's behalf under 
157.17  sections 256I.01 to 256I.06; or 
157.18     (2)(i) who is a resident of Minnesota; and whose equity in 
157.19  assets is not in excess of $1,000 per assistance unit.  No asset 
157.20  test shall be applied to children and their parents living in 
157.21  the same household.  Exempt assets, the reduction of excess 
157.22  assets, and the waiver of excess assets must conform to the 
157.23  medical assistance program in chapter 256B, with the following 
157.24  exception:  the maximum amount of undistributed funds in a trust 
157.25  that could be distributed to or on behalf of the beneficiary by 
157.26  the trustee, assuming the full exercise of the trustee's 
157.27  discretion under the terms of the trust, must be applied toward 
157.28  the asset maximum; and 
157.29     (ii) who has countable income not in excess of the 
157.30  assistance standards established in section 256B.056, 
157.31  subdivision 4, or whose excess income is spent down pursuant to 
157.32  section 256B.056, subdivision 5, using a six-month budget 
157.33  period, except that a one-month budget period must be used for 
157.34  recipients residing in a long-term care facility.  The method 
157.35  for calculating earned income disregards and deductions for a 
157.36  person who resides with a dependent child under age 21 shall be 
158.1   as specified in section 256.74, subdivision 1 follow section 
158.2   256B.056, subdivision 1a.  However, if a disregard of $30 and 
158.3   one-third of the remainder described in section 256.74, 
158.4   subdivision 1, clause (4), has been applied to the wage earner's 
158.5   income, the disregard shall not be applied again until the wage 
158.6   earner's income has not been considered in an eligibility 
158.7   determination for general assistance, general assistance medical 
158.8   care, medical assistance, or aid to families with dependent 
158.9   children MFIP-S for 12 consecutive months.  The earned income 
158.10  and work expense deductions for a person who does not reside 
158.11  with a dependent child under age 21 shall be the same as the 
158.12  method used to determine eligibility for a person under section 
158.13  256D.06, subdivision 1, except the disregard of the first $50 of 
158.14  earned income is not allowed; or 
158.15     (3) who would be eligible for medical assistance except 
158.16  that the person resides in a facility that is determined by the 
158.17  commissioner or the federal health care financing administration 
158.18  to be an institution for mental diseases. 
158.19     (b) Eligibility is available for the month of application, 
158.20  and for three months prior to application if the person was 
158.21  eligible in those prior months.  A redetermination of 
158.22  eligibility must occur every 12 months.  
158.23     (c) General assistance medical care is not available for a 
158.24  person in a correctional facility unless the person is detained 
158.25  by law for less than one year in a county correctional or 
158.26  detention facility as a person accused or convicted of a crime, 
158.27  or admitted as an inpatient to a hospital on a criminal hold 
158.28  order, and the person is a recipient of general assistance 
158.29  medical care at the time the person is detained by law or 
158.30  admitted on a criminal hold order and as long as the person 
158.31  continues to meet other eligibility requirements of this 
158.32  subdivision.  
158.33     (d) General assistance medical care is not available for 
158.34  applicants or recipients who do not cooperate with the county 
158.35  agency to meet the requirements of medical assistance. 
158.36     (e) In determining the amount of assets of an individual, 
159.1   there shall be included any asset or interest in an asset, 
159.2   including an asset excluded under paragraph (a), that was given 
159.3   away, sold, or disposed of for less than fair market value 
159.4   within the 60 months preceding application for general 
159.5   assistance medical care or during the period of eligibility.  
159.6   Any transfer described in this paragraph shall be presumed to 
159.7   have been for the purpose of establishing eligibility for 
159.8   general assistance medical care, unless the individual furnishes 
159.9   convincing evidence to establish that the transaction was 
159.10  exclusively for another purpose.  For purposes of this 
159.11  paragraph, the value of the asset or interest shall be the fair 
159.12  market value at the time it was given away, sold, or disposed 
159.13  of, less the amount of compensation received.  For any 
159.14  uncompensated transfer, the number of months of ineligibility, 
159.15  including partial months, shall be calculated by dividing the 
159.16  uncompensated transfer amount by the average monthly per person 
159.17  payment made by the medical assistance program to skilled 
159.18  nursing facilities for the previous calendar year.  The 
159.19  individual shall remain ineligible until this fixed period has 
159.20  expired.  The period of ineligibility may exceed 30 months, and 
159.21  a reapplication for benefits after 30 months from the date of 
159.22  the transfer shall not result in eligibility unless and until 
159.23  the period of ineligibility has expired.  The period of 
159.24  ineligibility begins in the month the transfer was reported to 
159.25  the county agency, or if the transfer was not reported, the 
159.26  month in which the county agency discovered the transfer, 
159.27  whichever comes first.  For applicants, the period of 
159.28  ineligibility begins on the date of the first approved 
159.29  application. 
159.30     (f)(1) Beginning October 1, 1993, an undocumented alien or 
159.31  a nonimmigrant is ineligible for general assistance medical care 
159.32  other than emergency services.  For purposes of this 
159.33  subdivision, a nonimmigrant is an individual in one or more of 
159.34  the classes listed in United States Code, title 8, section 
159.35  1101(a)(15), and an undocumented alien is an individual who 
159.36  resides in the United States without the approval or 
160.1   acquiescence of the Immigration and Naturalization Service. 
160.2      (2) This subdivision does not apply to a child under age 
160.3   18, to a Cuban or Haitian entrant as defined in Public Law 
160.4   Number 96-422, section 501(e)(1) or (2)(a), or to an alien who 
160.5   is aged, blind, or disabled as defined in United States Code, 
160.6   title 42, section 1382c(a)(1). 
160.7      (3) For purposes of paragraph (f), "emergency services" has 
160.8   the meaning given in Code of Federal Regulations, title 42, 
160.9   section 440.255(b)(1), except that it also means services 
160.10  rendered because of suspected or actual pesticide poisoning. 
160.11     Sec. 52.  Minnesota Statutes 1996, section 256G.02, 
160.12  subdivision 6, is amended to read: 
160.13     Subd. 6.  [EXCLUDED TIME.] "Excluded time" means: 
160.14     (a) any period an applicant spends in a hospital, 
160.15  sanitarium, nursing home, shelter other than an emergency 
160.16  shelter, halfway house, foster home, semi-independent living 
160.17  domicile or services program, residential facility offering 
160.18  care, board and lodging facility or other institution for the 
160.19  hospitalization or care of human beings, as defined in section 
160.20  144.50, 144A.01, or 245A.02, subdivision 14; maternity home, 
160.21  battered women's shelter, or correctional facility; or any 
160.22  facility based on an emergency hold under sections 253B.05, 
160.23  subdivisions 1 and 2, and 253B.07, subdivision 6; 
160.24     (b) any period an applicant spends on a placement basis in 
160.25  a training and habilitation program, including a rehabilitation 
160.26  facility or work or employment program as defined in section 
160.27  268A.01; or receiving personal care assistant services pursuant 
160.28  to section 256B.0627, subdivision 4; semi-independent living 
160.29  services provided under section 252.275, and Minnesota Rules, 
160.30  parts 9525.0500 to 9525.0660; day training and habilitation 
160.31  programs, and community-based services and assisted living 
160.32  services; and 
160.33     (c) any placement for a person with an indeterminate 
160.34  commitment, including independent living.  
160.35     Sec. 53.  Minnesota Statutes 1996, section 256I.05, 
160.36  subdivision 1a, is amended to read: 
161.1      Subd. 1a.  [SUPPLEMENTARY RATES.] In addition to the room 
161.2   and board rate specified in subdivision 1, the county agency may 
161.3   negotiate a payment not to exceed $426.37 for other services 
161.4   necessary to provide room and board provided by the group 
161.5   residence if the residence is licensed by or registered by the 
161.6   department of health, or licensed by the department of human 
161.7   services to provide services in addition to room and board, and 
161.8   if the provider of services is not also concurrently receiving 
161.9   funding for services for a recipient under a home and 
161.10  community-based waiver under title XIX of the Social Security 
161.11  Act; or funding from the medical assistance program under 
161.12  section 256B.0627, subdivision 4, for personal care services for 
161.13  residents in the setting; or residing in a setting which 
161.14  receives funding under Minnesota Rules, parts 9535.2000 to 
161.15  9535.3000.  If funding is available for other necessary services 
161.16  through a home and community-based waiver, or personal care 
161.17  services under section 256B.0627, subdivision 4, then the GRH 
161.18  rate is limited to the rate set in subdivision 1.  The 
161.19  registration and licensure requirement does not apply to 
161.20  establishments which are exempt from state licensure because 
161.21  they are located on Indian reservations and for which the tribe 
161.22  has prescribed health and safety requirements.  Service payments 
161.23  under this section may be prohibited under rules to prevent the 
161.24  supplanting of federal funds with state funds.  The commissioner 
161.25  shall pursue the feasibility of obtaining the approval of the 
161.26  Secretary of Health and Human Services to provide home and 
161.27  community-based waiver services under title XIX of the Social 
161.28  Security Act for residents who are not eligible for an existing 
161.29  home and community-based waiver due to a primary diagnosis of 
161.30  mental illness or chemical dependency and shall apply for a 
161.31  waiver if it is determined to be cost-effective.  The 
161.32  commissioner is authorized to make cost-neutral transfers from 
161.33  the GRH fund for beds under this section to other funding 
161.34  programs administered by the department after consultation with 
161.35  the county or counties in which the affected beds are located.  
161.36  The commissioner may also make cost neutral transfers from the 
162.1   GRH fund to county human service agencies for beds permanently 
162.2   removed from the GRH census under a plan submitted by the county 
162.3   agency and approved by the commissioner.  The commissioner shall 
162.4   report the amount of any transfers under this provision annually 
162.5   to the legislature. 
162.6      Sec. 54.  Minnesota Statutes 1996, section 469.155, 
162.7   subdivision 4, is amended to read: 
162.8      Subd. 4.  [REFINANCING HEALTH FACILITIES.] It may issue 
162.9   revenue bonds to pay, purchase, or discharge all or any part of 
162.10  the outstanding indebtedness of a contracting party engaged 
162.11  primarily in the operation of one or more nonprofit hospitals or 
162.12  nursing homes previously incurred in the acquisition or 
162.13  betterment of its existing hospital or nursing home facilities 
162.14  to the extent deemed necessary by the governing body of the 
162.15  municipality or redevelopment agency; this may include any 
162.16  unpaid interest on the indebtedness accrued or to accrue to the 
162.17  date on which the indebtedness is finally paid, and any premium 
162.18  the governing body of the municipality or redevelopment agency 
162.19  determines to be necessary to be paid to pay, purchase, or 
162.20  defease the outstanding indebtedness.  If revenue bonds are 
162.21  issued for this purpose, the refinancing and the existing 
162.22  properties of the contracting party shall be deemed to 
162.23  constitute a project under section 469.153, subdivision 2, 
162.24  clause (d).  Revenue bonds may not be issued pursuant to this 
162.25  subdivision unless the application for approval of the project 
162.26  pursuant to section 469.154 shows that a reduction in debt 
162.27  service charges is estimated to result and will be reflected in 
162.28  charges to patients and third-party payors.  Proceeds of revenue 
162.29  bonds issued pursuant to this subdivision may not be used for 
162.30  any purpose inconsistent with the provisions of chapter 256B.  
162.31  Nothing in this subdivision prohibits the use of revenue bond 
162.32  proceeds to pay outstanding indebtedness of a contracting party 
162.33  to the extent permitted by law on March 28, 1978.  
162.34     Sec. 55.  [WAIVER MODIFICATION.] 
162.35     The commissioner of human services shall seek federal 
162.36  approval for any modifications to the health care reform waiver 
163.1   necessary to implement the asset standard changes in sections 20 
163.2   to 22 and 27.  
163.3      Sec. 56.  [NEED FOR NONSTANDARD WHEELCHAIRS.] 
163.4      The commissioner of human services, in consultation with 
163.5   the System of Technology to Achieve Results (STAR) program, 
163.6   shall present a report to the legislature by January 1, 1998, on 
163.7   the need for nonstandard wheelchairs for recipients residing in 
163.8   long-term care facilities.  A standard wheelchair is a manual 
163.9   wheelchair that is 16 to 20 inches wide and 18 inches deep with 
163.10  sling seat and back upholstery and a seat height of 19-1/2 
163.11  inches.  The report shall: 
163.12     (1) determine how many medical assistance recipients who 
163.13  reside in long-term care facilities cannot independently operate 
163.14  a standard wheelchair, but can safely and independently operate 
163.15  a power or other nonstandard wheelchair; 
163.16     (2) determine how many medical assistance recipients who 
163.17  reside in long-term care facilities require a wheelchair to be 
163.18  permanently modified by the addition of an item to accommodate 
163.19  their health needs; 
163.20     (3) determine how many medical assistance recipients who 
163.21  reside in long-term care facilities have seating or positioning 
163.22  needs which cannot be accommodated in a standard wheelchair; 
163.23     (4) determine the average cost of a nonstandard wheelchair; 
163.24     (5) determine the capability of long-term care facilities 
163.25  to provide nonstandard wheelchairs to meet medical assistance 
163.26  recipients needs; and 
163.27     (6) determine to what extent in the past four years the 
163.28  department of health has enforced regulations or rules relating 
163.29  to a long-term care facility's obligation to meet the mobility 
163.30  needs of residents. 
163.31     Sec. 57.  [REPEALER.] 
163.32     Minnesota Statutes 1996, section 256B.0625, subdivision 
163.33  13b, is repealed the day following final enactment.  Minnesota 
163.34  Statutes 1996, sections 256B.057, subdivisions 2a and 2b; and 
163.35  469.154, subdivision 6, are repealed. 
163.36     Sec. 58.  [EFFECTIVE DATE.] 
164.1      Sections 11 to 14 and 35 are effective the day following 
164.2   final enactment. 
164.3                              ARTICLE 5 
164.4                         CHILDREN'S PROGRAMS 
164.5      Section 1.  Minnesota Statutes 1996, section 245.4882, 
164.6   subdivision 5, is amended to read: 
164.7      Subd. 5.  [SPECIALIZED RESIDENTIAL TREATMENT SERVICES.] The 
164.8   commissioner of human services shall continue efforts to further 
164.9   interagency collaboration to develop a comprehensive system of 
164.10  services, including family community support and specialized 
164.11  residential treatment services for children.  The services shall 
164.12  be designed for children with emotional disturbance who exhibit 
164.13  violent or destructive behavior and for whom local treatment 
164.14  services are not feasible due to the small number of children 
164.15  statewide who need the services and the specialized nature of 
164.16  the services required.  The services shall be located in 
164.17  community settings.  If no appropriate services are available in 
164.18  Minnesota or within the geographical area in which the residents 
164.19  of the county normally do business, the commissioner is 
164.20  responsible, effective July 1, 1997, for 50 percent of the 
164.21  nonfederal costs of out-of-state treatment of children for whom 
164.22  no appropriate resources are available in Minnesota.  Counties 
164.23  are eligible to receive enhanced state funding under this 
164.24  section only if they have established juvenile screening teams 
164.25  under section 260.151, subdivision 3, and if the out-of-state 
164.26  treatment has been approved by the commissioner.  By January 1, 
164.27  1995, the commissioners of human services and corrections shall 
164.28  jointly develop a plan, including a financing strategy, for 
164.29  increasing the in-state availability of treatment within a 
164.30  secure setting.  By July 1, 1994, the commissioner of human 
164.31  services shall also: 
164.32     (1) conduct a study and develop a plan to meet the needs of 
164.33  children with both a developmental disability and severe 
164.34  emotional disturbance; and 
164.35     (2) study the feasibility of expanding medical assistance 
164.36  coverage to include specialized residential treatment for the 
165.1   children described in this subdivision.  
165.2      Sec. 2.  Minnesota Statutes 1996, section 245.493, 
165.3   subdivision 1, is amended to read: 
165.4      Subdivision 1.  [REQUIREMENTS TO QUALIFY AS A LOCAL 
165.5   CHILDREN'S MENTAL HEALTH COLLABORATIVE.] In order to qualify as 
165.6   a local children's mental health collaborative and be eligible 
165.7   to receive start-up funds, the representatives of the local 
165.8   system of care, including entities provided under section 
165.9   245.4875, subdivision 6, and nongovernmental entities such as 
165.10  parents of children in the target population; parent and 
165.11  consumer organizations; community, civic, and religious 
165.12  organizations; private and nonprofit mental and physical health 
165.13  care providers; culturally specific organizations; local 
165.14  foundations; and businesses, or at a minimum one county, one 
165.15  school district or special education cooperative, and one mental 
165.16  health entity, and, by July 1, 1998, one juvenile justice or 
165.17  corrections entity, must agree to the following: 
165.18     (1) to establish a local children's mental health 
165.19  collaborative and develop an integrated service system; and 
165.20     (2) to commit resources to providing services through the 
165.21  local children's mental health collaborative. 
165.22     Sec. 3.  Minnesota Statutes 1996, section 245.493, is 
165.23  amended by adding a subdivision to read: 
165.24     Subd. 1a.  [DUTIES OF CERTAIN COORDINATING BODIES.] By 
165.25  mutual agreement of the collaborative and a coordinating body 
165.26  listed in this subdivision, a children's mental health 
165.27  collaborative or a collaborative established by the merger of a 
165.28  children's mental health collaborative and a family services 
165.29  collaborative under section 121.8355, may assume the duties of a 
165.30  community transition interagency committee established under 
165.31  section 120.17, subdivision 16; an interagency early 
165.32  intervention committee established under 120.1701, subdivision 
165.33  5; a local advisory council established under section 245.4875, 
165.34  subdivision 5; or a local coordinating council established under 
165.35  section 245.4875, subdivision 6. 
165.36     Sec. 4.  Minnesota Statutes 1996, section 256.01, 
166.1   subdivision 2, is amended to read: 
166.2      Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
166.3   section 241.021, subdivision 2, the commissioner of human 
166.4   services shall: 
166.5      (1) Administer and supervise all forms of public assistance 
166.6   provided for by state law and other welfare activities or 
166.7   services as are vested in the commissioner.  Administration and 
166.8   supervision of human services activities or services includes, 
166.9   but is not limited to, assuring timely and accurate distribution 
166.10  of benefits, completeness of service, and quality program 
166.11  management.  In addition to administering and supervising human 
166.12  services activities vested by law in the department, the 
166.13  commissioner shall have the authority to: 
166.14     (a) require county agency participation in training and 
166.15  technical assistance programs to promote compliance with 
166.16  statutes, rules, federal laws, regulations, and policies 
166.17  governing human services; 
166.18     (b) monitor, on an ongoing basis, the performance of county 
166.19  agencies in the operation and administration of human services, 
166.20  enforce compliance with statutes, rules, federal laws, 
166.21  regulations, and policies governing welfare services and promote 
166.22  excellence of administration and program operation; 
166.23     (c) develop a quality control program or other monitoring 
166.24  program to review county performance and accuracy of benefit 
166.25  determinations; 
166.26     (d) require county agencies to make an adjustment to the 
166.27  public assistance benefits issued to any individual consistent 
166.28  with federal law and regulation and state law and rule and to 
166.29  issue or recover benefits as appropriate; 
166.30     (e) delay or deny payment of all or part of the state and 
166.31  federal share of benefits and administrative reimbursement 
166.32  according to the procedures set forth in section 256.017; and 
166.33     (f) make contracts with and grants to public and private 
166.34  agencies and organizations, both profit and nonprofit, and 
166.35  individuals, using appropriated funds. 
166.36     (2) Inform county agencies, on a timely basis, of changes 
167.1   in statute, rule, federal law, regulation, and policy necessary 
167.2   to county agency administration of the programs. 
167.3      (3) Administer and supervise all child welfare activities; 
167.4   promote the enforcement of laws protecting handicapped, 
167.5   dependent, neglected and delinquent children, and children born 
167.6   to mothers who were not married to the children's fathers at the 
167.7   times of the conception nor at the births of the children; 
167.8   license and supervise child-caring and child-placing agencies 
167.9   and institutions; supervise the care of children in boarding and 
167.10  foster homes or in private institutions; and generally perform 
167.11  all functions relating to the field of child welfare now vested 
167.12  in the state board of control. 
167.13     (4) Administer and supervise all noninstitutional service 
167.14  to handicapped persons, including those who are visually 
167.15  impaired, hearing impaired, or physically impaired or otherwise 
167.16  handicapped.  The commissioner may provide and contract for the 
167.17  care and treatment of qualified indigent children in facilities 
167.18  other than those located and available at state hospitals when 
167.19  it is not feasible to provide the service in state hospitals. 
167.20     (5) Assist and actively cooperate with other departments, 
167.21  agencies and institutions, local, state, and federal, by 
167.22  performing services in conformity with the purposes of Laws 
167.23  1939, chapter 431. 
167.24     (6) Act as the agent of and cooperate with the federal 
167.25  government in matters of mutual concern relative to and in 
167.26  conformity with the provisions of Laws 1939, chapter 431, 
167.27  including the administration of any federal funds granted to the 
167.28  state to aid in the performance of any functions of the 
167.29  commissioner as specified in Laws 1939, chapter 431, and 
167.30  including the promulgation of rules making uniformly available 
167.31  medical care benefits to all recipients of public assistance, at 
167.32  such times as the federal government increases its participation 
167.33  in assistance expenditures for medical care to recipients of 
167.34  public assistance, the cost thereof to be borne in the same 
167.35  proportion as are grants of aid to said recipients. 
167.36     (7) Establish and maintain any administrative units 
168.1   reasonably necessary for the performance of administrative 
168.2   functions common to all divisions of the department. 
168.3      (8) Act as designated guardian of both the estate and the 
168.4   person of all the wards of the state of Minnesota, whether by 
168.5   operation of law or by an order of court, without any further 
168.6   act or proceeding whatever, except as to persons committed as 
168.7   mentally retarded.  For children under the guardianship of the 
168.8   commissioner whose interests would be best served by adoptive 
168.9   placement, the commissioner may contract with a licensed 
168.10  child-placing agency to provide adoption services.  A contract 
168.11  with a licensed child-placing agency must be designed to 
168.12  supplement existing county efforts, and shall not replace 
168.13  existing county programs, unless the replacement is agreed to by 
168.14  the county board and the appropriate exclusive bargaining 
168.15  representative, or the commissioner has evidence that the 
168.16  county's rate of placing these children continues to be 
168.17  substantially below that of other counties.  
168.18     (9) Act as coordinating referral and informational center 
168.19  on requests for service for newly arrived immigrants coming to 
168.20  Minnesota. 
168.21     (10) The specific enumeration of powers and duties as 
168.22  hereinabove set forth shall in no way be construed to be a 
168.23  limitation upon the general transfer of powers herein contained. 
168.24     (11) Establish county, regional, or statewide schedules of 
168.25  maximum fees and charges which may be paid by county agencies 
168.26  for medical, dental, surgical, hospital, nursing and nursing 
168.27  home care and medicine and medical supplies under all programs 
168.28  of medical care provided by the state and for congregate living 
168.29  care under the income maintenance programs. 
168.30     (12) Have the authority to conduct and administer 
168.31  experimental projects to test methods and procedures of 
168.32  administering assistance and services to recipients or potential 
168.33  recipients of public welfare.  To carry out such experimental 
168.34  projects, it is further provided that the commissioner of human 
168.35  services is authorized to waive the enforcement of existing 
168.36  specific statutory program requirements, rules, and standards in 
169.1   one or more counties.  The order establishing the waiver shall 
169.2   provide alternative methods and procedures of administration, 
169.3   shall not be in conflict with the basic purposes, coverage, or 
169.4   benefits provided by law, and in no event shall the duration of 
169.5   a project exceed four years.  It is further provided that no 
169.6   order establishing an experimental project as authorized by the 
169.7   provisions of this section shall become effective until the 
169.8   following conditions have been met: 
169.9      (a) The proposed comprehensive plan, including estimated 
169.10  project costs and the proposed order establishing the waiver, 
169.11  shall be filed with the secretary of the senate and chief clerk 
169.12  of the house of representatives at least 60 days prior to its 
169.13  effective date. 
169.14     (b) The secretary of health, education, and welfare of the 
169.15  United States has agreed, for the same project, to waive state 
169.16  plan requirements relative to statewide uniformity. 
169.17     (c) A comprehensive plan, including estimated project 
169.18  costs, shall be approved by the legislative advisory commission 
169.19  and filed with the commissioner of administration.  
169.20     (13) In accordance with federal requirements, establish 
169.21  procedures to be followed by local welfare boards in creating 
169.22  citizen advisory committees, including procedures for selection 
169.23  of committee members. 
169.24     (14) Allocate federal fiscal disallowances or sanctions 
169.25  which are based on quality control error rates for the aid to 
169.26  families with dependent children, medical assistance, or food 
169.27  stamp program in the following manner:  
169.28     (a) One-half of the total amount of the disallowance shall 
169.29  be borne by the county boards responsible for administering the 
169.30  programs.  For the medical assistance and AFDC programs, 
169.31  disallowances shall be shared by each county board in the same 
169.32  proportion as that county's expenditures for the sanctioned 
169.33  program are to the total of all counties' expenditures for the 
169.34  AFDC and medical assistance programs.  For the food stamp 
169.35  program, sanctions shall be shared by each county board, with 50 
169.36  percent of the sanction being distributed to each county in the 
170.1   same proportion as that county's administrative costs for food 
170.2   stamps are to the total of all food stamp administrative costs 
170.3   for all counties, and 50 percent of the sanctions being 
170.4   distributed to each county in the same proportion as that 
170.5   county's value of food stamp benefits issued are to the total of 
170.6   all benefits issued for all counties.  Each county shall pay its 
170.7   share of the disallowance to the state of Minnesota.  When a 
170.8   county fails to pay the amount due hereunder, the commissioner 
170.9   may deduct the amount from reimbursement otherwise due the 
170.10  county, or the attorney general, upon the request of the 
170.11  commissioner, may institute civil action to recover the amount 
170.12  due. 
170.13     (b) Notwithstanding the provisions of paragraph (a), if the 
170.14  disallowance results from knowing noncompliance by one or more 
170.15  counties with a specific program instruction, and that knowing 
170.16  noncompliance is a matter of official county board record, the 
170.17  commissioner may require payment or recover from the county or 
170.18  counties, in the manner prescribed in paragraph (a), an amount 
170.19  equal to the portion of the total disallowance which resulted 
170.20  from the noncompliance, and may distribute the balance of the 
170.21  disallowance according to paragraph (a).  
170.22     (15) Develop and implement special projects that maximize 
170.23  reimbursements and result in the recovery of money to the 
170.24  state.  For the purpose of recovering state money, the 
170.25  commissioner may enter into contracts with third parties.  Any 
170.26  recoveries that result from projects or contracts entered into 
170.27  under this paragraph shall be deposited in the state treasury 
170.28  and credited to a special account until the balance in the 
170.29  account reaches $1,000,000.  When the balance in the account 
170.30  exceeds $1,000,000, the excess shall be transferred and credited 
170.31  to the general fund.  All money in the account is appropriated 
170.32  to the commissioner for the purposes of this paragraph. 
170.33     (16) Have the authority to make direct payments to 
170.34  facilities providing shelter to women and their children 
170.35  pursuant to section 256D.05, subdivision 3.  Upon the written 
170.36  request of a shelter facility that has been denied payments 
171.1   under section 256D.05, subdivision 3, the commissioner shall 
171.2   review all relevant evidence and make a determination within 30 
171.3   days of the request for review regarding issuance of direct 
171.4   payments to the shelter facility.  Failure to act within 30 days 
171.5   shall be considered a determination not to issue direct payments.
171.6      (17) Have the authority to establish and enforce the 
171.7   following county reporting requirements:  
171.8      (a) The commissioner shall establish fiscal and statistical 
171.9   reporting requirements necessary to account for the expenditure 
171.10  of funds allocated to counties for human services programs.  
171.11  When establishing financial and statistical reporting 
171.12  requirements, the commissioner shall evaluate all reports, in 
171.13  consultation with the counties, to determine if the reports can 
171.14  be simplified or the number of reports can be reduced. 
171.15     (b) The county board shall submit monthly or quarterly 
171.16  reports to the department as required by the commissioner.  
171.17  Monthly reports are due no later than 15 working days after the 
171.18  end of the month.  Quarterly reports are due no later than 30 
171.19  calendar days after the end of the quarter, unless the 
171.20  commissioner determines that the deadline must be shortened to 
171.21  20 calendar days to avoid jeopardizing compliance with federal 
171.22  deadlines or risking a loss of federal funding.  Only reports 
171.23  that are complete, legible, and in the required format shall be 
171.24  accepted by the commissioner.  
171.25     (c) If the required reports are not received by the 
171.26  deadlines established in clause (b), the commissioner may delay 
171.27  payments and withhold funds from the county board until the next 
171.28  reporting period.  When the report is needed to account for the 
171.29  use of federal funds and the late report results in a reduction 
171.30  in federal funding, the commissioner shall withhold from the 
171.31  county boards with late reports an amount equal to the reduction 
171.32  in federal funding until full federal funding is received.  
171.33     (d) A county board that submits reports that are late, 
171.34  illegible, incomplete, or not in the required format for two out 
171.35  of three consecutive reporting periods is considered 
171.36  noncompliant.  When a county board is found to be noncompliant, 
172.1   the commissioner shall notify the county board of the reason the 
172.2   county board is considered noncompliant and request that the 
172.3   county board develop a corrective action plan stating how the 
172.4   county board plans to correct the problem.  The corrective 
172.5   action plan must be submitted to the commissioner within 45 days 
172.6   after the date the county board received notice of noncompliance.
172.7      (e) The final deadline for fiscal reports or amendments to 
172.8   fiscal reports is one year after the date the report was 
172.9   originally due.  If the commissioner does not receive a report 
172.10  by the final deadline, the county board forfeits the funding 
172.11  associated with the report for that reporting period and the 
172.12  county board must repay any funds associated with the report 
172.13  received for that reporting period. 
172.14     (f) The commissioner may not delay payments, withhold 
172.15  funds, or require repayment under paragraph (c) or (e) if the 
172.16  county demonstrates that the commissioner failed to provide 
172.17  appropriate forms, guidelines, and technical assistance to 
172.18  enable the county to comply with the requirements.  If the 
172.19  county board disagrees with an action taken by the commissioner 
172.20  under paragraph (c) or (e), the county board may appeal the 
172.21  action according to sections 14.57 to 14.69. 
172.22     (g) Counties subject to withholding of funds under 
172.23  paragraph (c) or forfeiture or repayment of funds under 
172.24  paragraph (e) shall not reduce or withhold benefits or services 
172.25  to clients to cover costs incurred due to actions taken by the 
172.26  commissioner under paragraph (c) or (e). 
172.27     (18) Allocate federal fiscal disallowances or sanctions for 
172.28  audit exceptions when federal fiscal disallowances or sanctions 
172.29  are based on a statewide random sample for the foster care 
172.30  program under title IV-E of the Social Security Act, United 
172.31  States Code, title 42, in direct proportion to each county's 
172.32  title IV-E foster care maintenance claim for that period. 
172.33     Sec. 5.  Minnesota Statutes 1996, section 256.01, is 
172.34  amended by adding a subdivision to read: 
172.35     Subd. 14.  [CHILD WELFARE REFORM PILOTS.] The commissioner 
172.36  of human services shall encourage local reforms in the delivery 
173.1   of child welfare services and is authorized to approve local 
173.2   pilot programs which focus on reforming the child protection and 
173.3   child welfare systems in Minnesota.  Authority to approve pilots 
173.4   includes authority to waive existing state rule and statutory 
173.5   requirements as needed to accomplish reform efforts.  Pilot 
173.6   programs must be required to address responsibility for safety 
173.7   and protection of children, be time limited, and include 
173.8   evaluation of the pilot program. 
173.9      Sec. 6.  Minnesota Statutes 1996, section 256.045, 
173.10  subdivision 3, is amended to read: 
173.11     Subd. 3.  [STATE AGENCY HEARINGS.] (a) State agency 
173.12  hearings are available for the following:  (1) any person 
173.13  applying for, receiving or having received public assistance or 
173.14  a program of social services granted by the state agency or a 
173.15  county agency under sections 252.32, 256.031 to 256.036, and 
173.16  256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the 
173.17  federal Food Stamp Act whose application for assistance is 
173.18  denied, not acted upon with reasonable promptness, or whose 
173.19  assistance is suspended, reduced, terminated, or claimed to have 
173.20  been incorrectly paid; (2) any patient or relative aggrieved by 
173.21  an order of the commissioner under section 252.27; (3) a party 
173.22  aggrieved by a ruling of a prepaid health plan; (4) any 
173.23  individual or facility determined by a lead agency to have 
173.24  maltreated a vulnerable adult under section 626.557 after they 
173.25  have exercised their right to administrative reconsideration 
173.26  under section 626.557; (5) any person whose claim for foster 
173.27  care payment pursuant to a placement of the child resulting from 
173.28  a child protection assessment under section 626.556 is denied or 
173.29  not acted upon with reasonable promptness, regardless of funding 
173.30  source; (6) any person to whom a right of appeal pursuant to 
173.31  this section is given by other provision of law; or (7) an 
173.32  applicant aggrieved by an adverse decision to an application for 
173.33  a hardship waiver under section 256B.15; or (8) an individual or 
173.34  facility determined to have maltreated a minor under section 
173.35  626.556, after the individual or facility has exercised the 
173.36  right to administrative reconsideration under section 626.556.  
174.1   The failure to exercise the right to an administrative 
174.2   reconsideration shall not be a bar to a hearing under this 
174.3   section if federal law provides an individual the right to a 
174.4   hearing to dispute a finding of maltreatment.  Individuals and 
174.5   organizations specified in this section may contest the 
174.6   specified action, decision, or final disposition before the 
174.7   state agency by submitting a written request for a hearing to 
174.8   the state agency within 30 days after receiving written notice 
174.9   of the action, decision, or final disposition, or within 90 days 
174.10  of such written notice if the applicant, recipient, patient, or 
174.11  relative shows good cause why the request was not submitted 
174.12  within the 30-day time limit. 
174.13     The hearing for an individual or facility under clause (4) 
174.14  or (8) is the only administrative appeal to the final lead 
174.15  agency disposition determination specifically, including a 
174.16  challenge to the accuracy and completeness of data under section 
174.17  13.04.  Hearings requested under clause (4) apply only to 
174.18  incidents of maltreatment that occur on or after October 1, 
174.19  1995.  Hearings requested by nursing assistants in nursing homes 
174.20  alleged to have maltreated a resident prior to October 1, 1995, 
174.21  shall be held as a contested case proceeding under the 
174.22  provisions of chapter 14.  Hearings requested under clause (8) 
174.23  apply only to incidents of maltreatment that occur on or after 
174.24  July 1, 1997.  A hearing for an individual or facility under 
174.25  clause (8) is only available when there is no juvenile court or 
174.26  adult criminal action pending.  If such action is filed in 
174.27  either court while an administrative review is pending, the 
174.28  administrative review must be suspended until the judicial 
174.29  actions are completed.  If the juvenile court action or criminal 
174.30  charge is dismissed or the criminal action overturned, the 
174.31  matter may be considered in an administrative hearing. 
174.32     For purposes of this section, bargaining unit grievance 
174.33  procedures are not an administrative appeal. 
174.34     The scope of hearings involving claims to foster care 
174.35  payments under clause (5) shall be limited to the issue of 
174.36  whether the county is legally responsible for a child's 
175.1   placement under court order or voluntary placement agreement 
175.2   and, if so, the correct amount of foster care payment to be made 
175.3   on the child's behalf and shall not include review of the 
175.4   propriety of the county's child protection determination or 
175.5   child placement decision. 
175.6      (b) Except for a prepaid health plan, a vendor of medical 
175.7   care as defined in section 256B.02, subdivision 7, or a vendor 
175.8   under contract with a county agency to provide social services 
175.9   under section 256E.08, subdivision 4, is not a party and may not 
175.10  request a hearing under this section, except if assisting a 
175.11  recipient as provided in subdivision 4. 
175.12     (c) An applicant or recipient is not entitled to receive 
175.13  social services beyond the services included in the amended 
175.14  community social services plan developed under section 256E.081, 
175.15  subdivision 3, if the county agency has met the requirements in 
175.16  section 256E.081. 
175.17     Sec. 7.  Minnesota Statutes 1996, section 256.045, 
175.18  subdivision 3b, is amended to read: 
175.19     Subd. 3b.  [STANDARD OF EVIDENCE FOR MALTREATMENT 
175.20  HEARINGS.] The state human services referee shall determine that 
175.21  maltreatment has occurred if a preponderance of evidence exists 
175.22  to support the final disposition under section sections 626.556 
175.23  and 626.557. 
175.24     The state human services referee shall recommend an order 
175.25  to the commissioner of health or human services, as applicable, 
175.26  who shall issue a final order.  The commissioner shall affirm, 
175.27  reverse, or modify the final disposition.  Any order of the 
175.28  commissioner issued in accordance with this subdivision is 
175.29  conclusive upon the parties unless appeal is taken in the manner 
175.30  provided in subdivision 7.  In any licensing appeal under 
175.31  chapter 245A and sections 144.50 to 144.58 and 144A.02 to 
175.32  144A.46, the commissioner's findings determination as to whether 
175.33  maltreatment occurred is conclusive. 
175.34     Sec. 8.  Minnesota Statutes 1996, section 256.045, 
175.35  subdivision 4, is amended to read: 
175.36     Subd. 4.  [CONDUCT OF HEARINGS.] (a) All hearings held 
176.1   pursuant to subdivision 3, 3a, 3b, or 4a shall be conducted 
176.2   according to the provisions of the federal Social Security Act 
176.3   and the regulations implemented in accordance with that act to 
176.4   enable this state to qualify for federal grants-in-aid, and 
176.5   according to the rules and written policies of the commissioner 
176.6   of human services.  County agencies shall install equipment 
176.7   necessary to conduct telephone hearings.  A state human services 
176.8   referee may schedule a telephone conference hearing when the 
176.9   distance or time required to travel to the county agency offices 
176.10  will cause a delay in the issuance of an order, or to promote 
176.11  efficiency, or at the mutual request of the parties.  Hearings 
176.12  may be conducted by telephone conferences unless the applicant, 
176.13  recipient, former recipient, person, or facility contesting 
176.14  maltreatment objects.  The hearing shall not be held earlier 
176.15  than five days after filing of the required notice with the 
176.16  county or state agency.  The state human services referee shall 
176.17  notify all interested persons of the time, date, and location of 
176.18  the hearing at least five days before the date of the hearing.  
176.19  Interested persons may be represented by legal counsel or other 
176.20  representative of their choice, including a provider of therapy 
176.21  services, at the hearing and may appear personally, testify and 
176.22  offer evidence, and examine and cross-examine witnesses.  The 
176.23  applicant, recipient, former recipient, person, or facility 
176.24  contesting maltreatment shall have the opportunity to examine 
176.25  the contents of the case file and all documents and records to 
176.26  be used by the county or state agency at the hearing at a 
176.27  reasonable time before the date of the hearing and during the 
176.28  hearing.  In cases alleging discharge for maltreatment, In 
176.29  hearings under subdivision 3, paragraph (b), clauses (4) and 
176.30  (8), either party may subpoena the private data relating to the 
176.31  investigation memorandum prepared by the lead agency under 
176.32  section 626.556 or 626.557 that is not otherwise accessible 
176.33  under section 13.04, provided the name identity of the reporter 
176.34  may not be disclosed. 
176.35     (b) The private data obtained by subpoena in a hearing 
176.36  under subdivision 3, paragraph (a), clause (4) or (8), must be 
177.1   subject to a protective order which prohibits its disclosure for 
177.2   any other purpose outside the hearing provided for in this 
177.3   section without prior order of the district court.  Disclosure 
177.4   without court order is punishable by a sentence of not more than 
177.5   90 days imprisonment or a fine of not more than $700, or both.  
177.6   These restrictions on the use of private data do not prohibit 
177.7   access to the data under section 13.03, subdivision 6.  Except 
177.8   for appeals under subdivision 3, paragraph (a), clauses (4), 
177.9   (5), and (8), upon request, the county agency shall provide 
177.10  reimbursement for transportation, child care, photocopying, 
177.11  medical assessment, witness fee, and other necessary and 
177.12  reasonable costs incurred by the applicant, recipient, or former 
177.13  recipient in connection with the appeal, except in appeals 
177.14  brought under subdivision 3b.  All evidence, except that 
177.15  privileged by law, commonly accepted by reasonable people in the 
177.16  conduct of their affairs as having probative value with respect 
177.17  to the issues shall be submitted at the hearing and such hearing 
177.18  shall not be "a contested case" within the meaning of section 
177.19  14.02, subdivision 3.  The agency must present its evidence 
177.20  prior to or at the hearing, and may not submit evidence after 
177.21  the hearing except by agreement of the parties at the hearing, 
177.22  provided the recipient petitioner has the opportunity to respond.
177.23     Sec. 9.  Minnesota Statutes 1996, section 256.045, 
177.24  subdivision 5, is amended to read: 
177.25     Subd. 5.  [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] 
177.26  This subdivision does not apply to appeals under subdivision 
177.27  3b.  A state human services referee shall conduct a hearing on 
177.28  the appeal and shall recommend an order to the commissioner of 
177.29  human services.  The recommended order must be based on all 
177.30  relevant evidence and must not be limited to a review of the 
177.31  propriety of the state or county agency's action.  A referee may 
177.32  take official notice of adjudicative facts.  The commissioner of 
177.33  human services may accept the recommended order of a state human 
177.34  services referee and issue the order to the county agency and 
177.35  the applicant, recipient, former recipient, or prepaid health 
177.36  plan.  The commissioner on refusing to accept the recommended 
178.1   order of the state human services referee, shall notify the 
178.2   county petitioner, the agency and the applicant, recipient, 
178.3   former recipient, or prepaid health plan of that fact and shall 
178.4   state reasons therefor and shall allow each party ten days' time 
178.5   to submit additional written argument on the matter.  After the 
178.6   expiration of the ten-day period, the commissioner shall issue 
178.7   an order on the matter to the county petitioner, the agency and 
178.8   the applicant, recipient, former recipient, or prepaid health 
178.9   plan. 
178.10     A party aggrieved by an order of the commissioner may 
178.11  appeal under subdivision 7, or request reconsideration by the 
178.12  commissioner within 30 days after the date the commissioner 
178.13  issues the order.  The commissioner may reconsider an order upon 
178.14  request of any party or on the commissioner's own motion.  A 
178.15  request for reconsideration does not stay implementation of the 
178.16  commissioner's order.  Upon reconsideration, the commissioner 
178.17  may issue an amended order or an order affirming the original 
178.18  order. 
178.19     Any order of the commissioner issued under this subdivision 
178.20  shall be conclusive upon the parties unless appeal is taken in 
178.21  the manner provided by subdivision 7.  Any order of the 
178.22  commissioner is binding on the parties and must be implemented 
178.23  by the state agency or a county agency until the order is 
178.24  reversed by the district court, or unless the commissioner or a 
178.25  district court orders monthly assistance or aid or services paid 
178.26  or provided under subdivision 10. 
178.27     Except for a prepaid health plan, a vendor of medical care 
178.28  as defined in section 256B.02, subdivision 7, or a vendor under 
178.29  contract with a county agency to provide social services under 
178.30  section 256E.08, subdivision 4, is not a party and may not 
178.31  request a hearing or seek judicial review of an order issued 
178.32  under this section, unless assisting a recipient as provided in 
178.33  subdivision 4. 
178.34     Sec. 10.  Minnesota Statutes 1996, section 256.045, 
178.35  subdivision 8, is amended to read: 
178.36     Subd. 8.  [HEARING.] Any party may obtain a hearing at a 
179.1   special term of the district court by serving a written notice 
179.2   of the time and place of the hearing at least ten days prior to 
179.3   the date of the hearing.  Except for appeals under subdivision 
179.4   3b, The court may consider the matter in or out of chambers, and 
179.5   shall take no new or additional evidence unless it determines 
179.6   that such evidence is necessary for a more equitable disposition 
179.7   of the appeal. 
179.8      Sec. 11.  Minnesota Statutes 1996, section 256.82, is 
179.9   amended by adding a subdivision to read: 
179.10     Subd. 5.  [DIFFICULTY OF CARE ASSESSMENT PILOT 
179.11  PROJECT.] Notwithstanding any law to the contrary, the 
179.12  commissioner of human services shall conduct a two-year 
179.13  statewide pilot project beginning July 1, 1997, to conduct a 
179.14  difficulty of care assessment process which both assesses an 
179.15  individual child's current functioning and identifies needs in a 
179.16  variety of life situations.  The pilot project must take into 
179.17  consideration existing difficulty of care payments so that, to 
179.18  the extent possible, no child for whom a difficulty of care rate 
179.19  is currently established will be adversely affected.  The pilot 
179.20  project must include an evaluation and an interim report to the 
179.21  legislature by January 15, 1999. 
179.22     Sec. 12.  Minnesota Statutes 1996, section 256F.11, 
179.23  subdivision 2, is amended to read: 
179.24     Subd. 2.  [FUND DISTRIBUTION.] In distributing funds, the 
179.25  commissioner shall give priority consideration to agencies and 
179.26  organizations with experience in working with abused or 
179.27  neglected children and their families, and with children at high 
179.28  risk of abuse and neglect and their families, and serve 
179.29  communities which demonstrate the greatest need for these 
179.30  services.  Funds shall be distributed to crisis nurseries 
179.31  according to a formula developed by the commissioner in 
179.32  consultation with the Minnesota crisis nursery association.  
179.33  This formula shall include funding for all existing crisis 
179.34  nursery programs that meet program requirements as specified in 
179.35  paragraph (a), and consideration of factors reflecting the need 
179.36  for services in each service area, including, but not limited 
180.1   to, the number of children 18 years of age and under living in 
180.2   the service area, the percent of children 18 years of age and 
180.3   under living in poverty in the service area, and factors 
180.4   reflecting the cost of providing services, including, but not 
180.5   limited to, the number of days of service provided in the 
180.6   previous year.  At least 25 percent of available funds for state 
180.7   fiscal year 1998 shall be set aside to accomplish any of the 
180.8   following:  establish new crisis nursery programs; increase 
180.9   statewide availability of crisis nursery services; and enhance 
180.10  or expand services at existing crisis nursery programs. 
180.11     (a) The crisis nurseries must:  
180.12     (1) be available 24 hours a day, seven days a week; 
180.13     (2) provide services for children up to three days at any 
180.14  one time; 
180.15     (3) make referrals for parents to counseling services and 
180.16  other community resources to help alleviate the underlying cause 
180.17  of the precipitating stress or crisis; 
180.18     (4) provide services without a fee for a maximum of 30 days 
180.19  in any year; 
180.20     (5) provide services to children from birth to 12 years of 
180.21  age; 
180.22     (6) provide an initial assessment and intake interview 
180.23  conducted by a skilled professional who will identify the 
180.24  presenting problem and make an immediate referral to an 
180.25  appropriate agency or program to prevent maltreatment and 
180.26  out-of-home placement of children; 
180.27     (7) maintain the clients' confidentiality to the extent 
180.28  required by law, and also comply with statutory reporting 
180.29  requirements which may mandate a report to child protective 
180.30  services; 
180.31     (8) contain a volunteer component; 
180.32     (9) provide preservice training and ongoing training to 
180.33  providers and volunteers; 
180.34     (10) evaluate the services provided by documenting use of 
180.35  services, the result of family referrals made to community 
180.36  resources, and how the services reduced the risk of 
181.1   maltreatment; 
181.2      (11) provide age appropriate programming; 
181.3      (12) provide developmental assessments; 
181.4      (13) provide medical assessments as determined by using a 
181.5   risk screening tool; 
181.6      (14) meet United States Department of Agriculture 
181.7   regulations concerning meals and provide three meals a day and 
181.8   three snacks during a 24-hour period; and 
181.9      (15) provide appropriate sleep and nap arrangements for 
181.10  children.  
181.11     (b) The crisis nurseries are encouraged to provide:  
181.12     (1) on-site support groups for facility model programs, or 
181.13  agency sponsored parent support groups for volunteer family 
181.14  model programs; 
181.15     (2) parent education classes or programs that include 
181.16  parent-child interaction; and 
181.17     (3) opportunities for parents to volunteer, if appropriate, 
181.18  to assist with child care in a supervised setting in order to 
181.19  enhance their parenting skills and self-esteem, in addition to 
181.20  providing them the opportunity to give something back to the 
181.21  program.  
181.22     (c) Parents shall retain custody of their children during 
181.23  placement in a crisis facility.  
181.24     The crisis nurseries are encouraged to include one or more 
181.25  parents who have used the crisis nursery services on the 
181.26  program's multidisciplinary advisory board. 
181.27     Sec. 13.  [257.85] [RELATIVE CUSTODY ASSISTANCE.] 
181.28     Subdivision 1.  [CITATION.] This section may be cited as 
181.29  the "Relative Custody Assistance Act." 
181.30     Subd. 2.  [PURPOSE.] The purpose of the Relative Custody 
181.31  Assistance Act is to assist relatives who provide a permanent 
181.32  placement for children who have been in court-ordered foster 
181.33  care by taking permanent legal and physical custody of the 
181.34  child.  Relative custody assistance is designed to remove 
181.35  barriers to establishing custody with a relative that result 
181.36  from the special needs of the child and the limited financial 
182.1   resources available to the relative custodian to meet those 
182.2   needs.  This section establishes a system of financial support 
182.3   through state and county partnership for relatives who assume 
182.4   permanent legal and physical custody of a child through a 
182.5   Minnesota juvenile court order entered pursuant to section 
182.6   260.191, subdivision 3b, and finding:  
182.7      (1) that the child cannot return to the home of the child's 
182.8   parents; and 
182.9      (2) that it is in the child's best interests that permanent 
182.10  legal and physical custody be transferred to the relative. 
182.11  Relative custody assistance is designed to determine a 
182.12  supplement to the cash assistance otherwise available to the 
182.13  relative custodian of a child that would raise the total amount 
182.14  of assistance to the amount the child would be eligible to 
182.15  receive through the adoption assistance program if an adoption 
182.16  assistance agreement were entered on the child's behalf.  A 
182.17  percentage of the supplement so determined is then paid based 
182.18  upon the income of the relative custodian's family. 
182.19     Subd. 3.  [SCOPE.] The provisions of this section apply to 
182.20  those situations in which the legal and physical custody of a 
182.21  child is established with a relative according to section 
182.22  260.191, subdivision 3b, by a court order issued on or after 
182.23  July 1, 1997.  
182.24     Subd. 4.  [DEFINITIONS.] For purposes of this section, the 
182.25  terms defined in this subdivision have the meanings given them. 
182.26     (a) "AFDC or MFIP standard" means the monthly standard of 
182.27  need used to calculate assistance under the AFDC program, the 
182.28  transitional standard used to calculate assistance under the 
182.29  MFIP-S program, or, if neither of those is applicable, the 
182.30  analogous transitional standard used to calculate assistance 
182.31  under the MFIP or MFIP-R programs. 
182.32     (b) "Local agency" means the local social service agency 
182.33  with legal custody of a child prior to the transfer of permanent 
182.34  legal and physical custody to a relative. 
182.35     (c) "Permanent legal and physical custody" means permanent 
182.36  legal and physical custody ordered by a Minnesota juvenile court 
183.1   under section 260.191, subdivision 3b. 
183.2      (d) "Relative" means an individual, other than a parent, 
183.3   who is related to a child by blood, marriage, or adoption. 
183.4      (e) "Relative custodian" means a relative of a child for 
183.5   whom the relative has permanent legal and physical custody. 
183.6      (f) "Relative custody assistance agreement" means an 
183.7   agreement entered into between a local agency and the relative 
183.8   of a child who has been or will be awarded permanent legal and 
183.9   physical custody of the child. 
183.10     (g) "Relative custody assistance payment" means a monthly 
183.11  cash grant made to a relative custodian pursuant to a relative 
183.12  custody assistance agreement and in an amount calculated under 
183.13  subdivision 8. 
183.14     (h) "Remains in the physical custody of the relative 
183.15  custodian" means that the relative custodian is providing 
183.16  day-to-day care for the child and that the child lives with the 
183.17  relative custodian; absence from the relative custodian's home 
183.18  for a period of more than 120 days raises a presumption that the 
183.19  child no longer remains in the physical custody of the relative 
183.20  custodian. 
183.21     Subd. 5.  [DUTIES OF LOCAL AGENCY.] When a local agency 
183.22  seeks a court order under section 260.191, subdivision 3b, to 
183.23  establish permanent legal and physical custody of a child with a 
183.24  relative, or if such an order is issued by the court, the local 
183.25  agency shall perform the duties in this subdivision. 
183.26     (a) As soon as possible after the local agency determines 
183.27  that it will seek to establish permanent legal and physical 
183.28  custody of the child with a relative or, if the agency did not 
183.29  seek to establish custody, as soon as possible after the 
183.30  issuance of the court order establishing custody, the local 
183.31  agency shall inform the relative about the relative custody 
183.32  assistance program, including eligibility criteria and payment 
183.33  levels.  Anytime prior to, but not later than seven days after, 
183.34  the date the court issues the order establishing permanent legal 
183.35  and physical custody of the child with a relative, the local 
183.36  agency shall determine whether the eligibility criteria in 
184.1   subdivision 7 are met to allow the relative to receive relative 
184.2   custody assistance.  Not later than seven days after determining 
184.3   whether the eligibility criteria are met, the local agency shall 
184.4   inform the relative custodian of its determination and of the 
184.5   process for appealing that determination under subdivision 10. 
184.6      (b) If the local agency determines that the relative 
184.7   custodian is eligible to receive relative custody assistance, 
184.8   the local agency shall prepare the relative custody assistance 
184.9   agreement and ensure that it meets the requirements of 
184.10  subdivision 6. 
184.11     (c) The local agency shall make monthly payments to the 
184.12  relative as set forth in the relative custody assistance 
184.13  agreement.  On a quarterly basis and on a form to be provided by 
184.14  the commissioner, the local agency shall make claims for 
184.15  reimbursement from the commissioner for relative custody 
184.16  assistance payments made. 
184.17     (d) For a relative custody assistance agreement that is in 
184.18  place for longer than one year, and as long as the agreement 
184.19  remains in effect, the local agency shall send an annual 
184.20  affidavit form to the relative custodian of the eligible child 
184.21  within the month before the anniversary date of the agreement.  
184.22  The local agency shall monitor whether the annual affidavit is 
184.23  returned by the relative custodian within 30 days following the 
184.24  anniversary date of the agreement.  The local agency shall 
184.25  review the affidavit and any other information in its possession 
184.26  to ensure continuing eligibility for relative custody assistance 
184.27  and that the amount of payment made according to the agreement 
184.28  is correct. 
184.29     (e) When the local agency determines that a relative 
184.30  custody assistance agreement should be terminated or modified, 
184.31  it shall provide notice of the proposed termination or 
184.32  modification to the relative custodian at least ten days before 
184.33  the proposed action along with information about the process for 
184.34  appealing the proposed action. 
184.35     Subd. 6.  [RELATIVE CUSTODY ASSISTANCE AGREEMENT.] (a) A 
184.36  relative custody assistance agreement will not be effective, 
185.1   unless it is signed by the local agency and the relative 
185.2   custodian no later than 30 days after the date of the order 
185.3   establishing permanent legal and physical custody with the 
185.4   relative, except that a local agency may enter into a relative 
185.5   custody assistance agreement with a relative custodian more than 
185.6   30 days after the date of the order if it certifies that the 
185.7   delay in entering the agreement was through no fault of the 
185.8   relative custodian.  There must be a separate agreement for each 
185.9   child for whom the relative custodian is receiving relative 
185.10  custody assistance. 
185.11     (b) Regardless of when the relative custody assistance 
185.12  agreement is signed by the local agency and relative custodian, 
185.13  the effective date of the agreement shall be the first day of 
185.14  the month following the date of the order establishing permanent 
185.15  legal and physical custody or the date that the last party signs 
185.16  the agreement, whichever occurs later. 
185.17     (c) If MFIP-S is not the applicable program for a child at 
185.18  the time that a relative custody assistance agreement is entered 
185.19  on behalf of the child, when MFIP-S becomes the applicable 
185.20  program, if the relative custodian had been receiving custody 
185.21  assistance payments calculated based upon a different program, 
185.22  the amount of relative custody assistance payment under 
185.23  subdivision 8 shall be recalculated under the MFIP-S program. 
185.24     (d) The relative custody assistance agreement shall be in a 
185.25  form specified by the commissioner and shall include provisions 
185.26  relating to the following: 
185.27     (1) the responsibilities of all parties to the agreement; 
185.28     (2) the payment terms, including the financial 
185.29  circumstances of the relative custodian, the needs of the child, 
185.30  the amount and calculation of the relative custody assistance 
185.31  payments, and that the amount of the payments shall be 
185.32  reevaluated annually; 
185.33     (3) the effective date of the agreement, which shall also 
185.34  be the anniversary date for the purpose of submitting the annual 
185.35  affidavit under subdivision 9; 
185.36     (4) that failure to submit the affidavit as required by 
186.1   subdivision 9 will be grounds for terminating the agreement; 
186.2      (5) the agreement's expected duration, which shall not 
186.3   extend beyond the child's eighteenth birthday; 
186.4      (6) any specific known circumstances that could cause the 
186.5   agreement or payments to be modified, reduced, or terminated and 
186.6   the relative custodian's appeal rights under subdivision 10; 
186.7      (7) that the relative custodian must notify the local 
186.8   agency within 30 days of any of the following: 
186.9      (i) a change in the child's status; 
186.10     (ii) a change in the relationship between the relative 
186.11  custodian and the child; 
186.12     (iii) a change in composition or level of income of the 
186.13  relative custodian's family; 
186.14     (iv) a change in eligibility or receipt of benefits under 
186.15  AFDC, MFIP-S, or other assistance program; and 
186.16     (v) any other change that could effect eligibility for or 
186.17  amount of relative custody assistance; 
186.18     (8) that failure to provide notice of a change as required 
186.19  by clause (7) will be grounds for terminating the agreement; 
186.20     (9) that the amount of relative custody assistance is 
186.21  subject to the availability of state funds to reimburse the 
186.22  local agency making the payments; 
186.23     (10) that the relative custodian may choose to temporarily 
186.24  stop receiving payments under the agreement at any time by 
186.25  providing 30 days' notice to the local agency and may choose to 
186.26  begin receiving payments again by providing the same notice but 
186.27  any payments the relative custodian chooses not to receive are 
186.28  forfeit; and 
186.29     (11) that the local agency will continue to be responsible 
186.30  for making relative custody assistance payments under the 
186.31  agreement regardless of the relative custodian's place of 
186.32  residence. 
186.33     Subd. 7.  [ELIGIBILITY CRITERIA.] A local agency shall 
186.34  enter into a relative custody assistance agreement under 
186.35  subdivision 6 if it certifies that the following criteria are 
186.36  met: 
187.1      (1) the juvenile court has determined or is expected to 
187.2   determine that the child, under the former or current custody of 
187.3   the local agency, cannot return to the home of the child's 
187.4   parents; 
187.5      (2) the court, upon determining that it is in the child's 
187.6   best interests, has issued or is expected to issue an order 
187.7   transferring permanent legal and physical custody of the child 
187.8   to the relative; and 
187.9      (3) the child either: 
187.10     (i) is a member of a sibling group to be placed together; 
187.11  or 
187.12     (ii) has a physical, mental, emotional, or behavioral 
187.13  disability that will require financial support. 
187.14     When the local agency bases its certification that the 
187.15  criteria in clause (1) or (2) are met upon the expectation that 
187.16  the juvenile court will take a certain action, the relative 
187.17  custody assistance agreement does not become effective until and 
187.18  unless the court acts as expected. 
187.19     Subd. 8.  [AMOUNT OF RELATIVE CUSTODY ASSISTANCE 
187.20  PAYMENTS.] (a) The amount of a monthly relative custody 
187.21  assistance payment shall be determined according to the 
187.22  provisions of this paragraph. 
187.23     (1) The total maximum assistance rate is equal to the base 
187.24  assistance rate plus, if applicable, the supplemental assistance 
187.25  rate. 
187.26     (i) The base assistance rate is equal to the maximum amount 
187.27  that could be received as basic maintenance for a child of the 
187.28  same age under the adoption assistance program. 
187.29     (ii) The local agency shall determine whether the child has 
187.30  physical, mental, emotional, or behavioral disabilities that 
187.31  require care, supervision, or structure beyond that ordinarily 
187.32  provided in a family setting to children of the same age such 
187.33  that the child would be eligible for supplemental maintenance 
187.34  payments under the adoption assistance program if an adoption 
187.35  assistance agreement were entered on the child's behalf.  If the 
187.36  local agency determines that the child has such a disability, 
188.1   the supplemental assistance rate shall be the maximum amount of 
188.2   monthly supplemental maintenance payment that could be received 
188.3   on behalf of a child of the same age, disabilities, and 
188.4   circumstances under the adoption assistance program. 
188.5      (2) The net maximum assistance rate is equal to the total 
188.6   maximum assistance rate from clause (1) less the following 
188.7   offsets: 
188.8      (i) if the child is or will be part of an assistance unit 
188.9   receiving an AFDC, MFIP-S, or other MFIP grant, the portion of 
188.10  the AFDC or MFIP standard relating to the child; 
188.11     (ii) Supplemental Security Income payments received by or 
188.12  on behalf of the child; 
188.13     (iii) veteran's benefits received by or on behalf of the 
188.14  child; and 
188.15     (iv) any other income of the child, including child support 
188.16  payments made on behalf of the child. 
188.17     (3) The relative custody assistance payment to be made to 
188.18  the relative custodian shall be a percentage of the net maximum 
188.19  assistance rate calculated in clause (2) based upon the gross 
188.20  income of the relative custodian's family, including the child 
188.21  for whom the relative has permanent legal and physical custody.  
188.22  In no case shall the amount of the relative custody assistance 
188.23  payment exceed that which the child could qualify for under the 
188.24  adoption assistance program if an adoption assistance agreement 
188.25  were entered on the child's behalf.  The relative custody 
188.26  assistance payment shall be calculated as follows: 
188.27     (i) if the relative custodian's gross family income is less 
188.28  than or equal to 200 percent of federal poverty guidelines, the 
188.29  relative custody assistance payment shall be the full amount of 
188.30  the net maximum assistance rate; 
188.31     (ii) if the relative custodian's gross family income is 
188.32  greater than 200 percent and less than or equal to 225 percent 
188.33  of federal poverty guidelines, the relative custody assistance 
188.34  payment shall be 80 percent of the net maximum assistance rate; 
188.35     (iii) if the relative custodian's gross family income is 
188.36  greater than 225 percent and less than or equal to 250 percent 
189.1   of federal poverty guidelines, the relative custody assistance 
189.2   payment shall be 60 percent of the net maximum assistance rate; 
189.3      (iv) if the relative custodian's gross family income is 
189.4   greater than 250 percent and less than or equal to 275 percent 
189.5   of federal poverty guidelines, the relative custody assistance 
189.6   payment shall be 40 percent of the net maximum assistance rate; 
189.7      (v) if the relative custodian's gross family income is 
189.8   greater than 275 percent and less than or equal to 300 percent 
189.9   of federal poverty guidelines, the relative custody assistance 
189.10  payment shall be 20 percent of the net maximum assistance rate; 
189.11  or 
189.12     (vi) if the relative custodian's gross family income is 
189.13  greater than 300 percent of federal poverty guidelines, no 
189.14  relative custody assistance payment shall be made. 
189.15     (b) This paragraph sets forth the provisions pertaining to 
189.16  the relationship between relative custody assistance and AFDC, 
189.17  MFIP-S, or other MFIP programs: 
189.18     (1) the relative custodian of a child for whom the relative 
189.19  is receiving relative custody assistance is expected to seek 
189.20  whatever assistance is available for the child through the AFDC, 
189.21  MFIP-S, or other MFIP programs.  If a relative custodian fails 
189.22  to apply for assistance through AFDC, MFIP-S, or other MFIP 
189.23  program for which the child is eligible, the child's portion of 
189.24  the AFDC or MFIP standard will be calculated as if application 
189.25  had been made and assistance received; 
189.26     (2) the portion of the AFDC or MFIP standard relating to 
189.27  each child for whom relative custody assistance is being 
189.28  received shall be calculated as follows: 
189.29     (i) determine the total AFDC or MFIP standard for the 
189.30  assistance unit; 
189.31     (ii) determine the amount that the AFDC or MFIP standard 
189.32  would have been if the assistance unit had not included the 
189.33  children for whom relative custody assistance is being received; 
189.34     (iii) subtract the amount determined in item (ii) from the 
189.35  amount determined in item (i); and 
189.36     (iv) divide the result in item (iii) by the number of 
190.1   children for whom relative custody assistance is being received 
190.2   that are part of the assistance unit; or 
190.3      (3) if a child for whom relative custody assistance is 
190.4   being received is not eligible for assistance through the AFDC, 
190.5   MFIP-S, or other MFIP programs, the portion of AFDC or MFIP 
190.6   standard relating to that child shall be equal to zero. 
190.7      Subd. 9.  [ANNUAL AFFIDAVIT.] When a relative custody 
190.8   assistance agreement remains in effect for more than one year, 
190.9   the local agency shall require the relative custodian to 
190.10  annually submit an affidavit in a form to be specified by the 
190.11  commissioner.  The affidavit must be submitted to the local 
190.12  agency each year no later than 30 days after the relative 
190.13  custody assistance agreement's anniversary date.  The affidavit 
190.14  shall document the following: 
190.15     (1) that the child remains in the physical custody of the 
190.16  relative custodian; 
190.17     (2) that there is a continuing need for the relative 
190.18  custody assistance payments due to the child's physical, mental, 
190.19  emotional, or behavioral needs; and 
190.20     (3) the current gross income of the relative custodian's 
190.21  family. 
190.22     The relative custody assistance agreement may be modified 
190.23  based on information or documentation presented to the local 
190.24  agency under this requirement and as required by annual 
190.25  adjustments to the federal poverty guidelines. 
190.26     Subd. 10.  [RIGHT OF APPEAL.] A relative custodian who 
190.27  enters into a relative custody assistance agreement with a local 
190.28  agency has the right to appeal to the commissioner under section 
190.29  256.045 when the local agency establishes, denies, terminates, 
190.30  or modifies the agreement.  Upon appeal, the commissioner may 
190.31  review only: 
190.32     (1) whether the local agency has met the legal requirements 
190.33  imposed by this chapter for establishing, denying, terminating, 
190.34  or modifying the agreement; 
190.35     (2) whether the amount of the relative custody assistance 
190.36  payment was correctly calculated under the method in subdivision 
191.1   8; 
191.2      (3) whether the local agency paid for correct time periods 
191.3   under the relative custody assistance agreement; 
191.4      (4) whether the child remains in the physical custody of 
191.5   the relative custodian; 
191.6      (5) whether the local agency correctly calculated the 
191.7   amount of the supplemental assistance rate based on a change in 
191.8   the child's physical, mental, emotional, or behavioral needs, 
191.9   the relative custodian's failure to document the continuing need 
191.10  for the supplemental assistance rate after the local agency has 
191.11  requested such documentation; and 
191.12     (6) whether the local agency correctly calculated or 
191.13  terminated the amount of relative custody assistance based on 
191.14  the relative custodian's failure to provide documentation of the 
191.15  gross income of the relative custodian's family after the local 
191.16  agency has requested such documentation. 
191.17     Subd. 11.  [CHILD'S COUNTY OF RESIDENCE.] For the purposes 
191.18  of the Unitary Residency Act, time spent by a child in the 
191.19  custody of a relative custodian receiving payments under this 
191.20  section is not excluded time.  A child is a resident of the 
191.21  county where the relative custodian is a resident. 
191.22     Subd. 12.  [FINANCIAL CONSIDERATIONS.] (a) Payment of 
191.23  relative custody assistance pursuant to a relative custody 
191.24  assistance agreement is subject to the availability of state 
191.25  funds and payments may be reduced or suspended on order of the 
191.26  commissioner if insufficient funds are available. 
191.27     (b) Upon receipt from a local agency of a claim for 
191.28  reimbursement, the commissioner shall reimburse the local agency 
191.29  in an amount equal to 100 percent of the relative custody 
191.30  assistance payments provided to relative custodians.  The local 
191.31  agency may not seek and the commissioner shall not provide 
191.32  reimbursement for the administrative costs associated with 
191.33  performing the duties in subdivision 5. 
191.34     (c) For the purposes of determining eligibility or payment 
191.35  amounts under the AFDC, MFIP-S, and other MFIP programs, 
191.36  relative custody assistance payments shall be considered 
192.1   excluded income. 
192.2      Sec. 14.  Minnesota Statutes 1996, section 393.07, 
192.3   subdivision 2, is amended to read: 
192.4      Subd. 2.  [ADMINISTRATION OF PUBLIC WELFARE.] The local 
192.5   social services agency, subject to the supervision of the 
192.6   commissioner of human services, shall administer all forms of 
192.7   public welfare, both for children and adults, responsibility for 
192.8   which now or hereafter may be imposed on the commissioner of 
192.9   human services by law, including general assistance, aid to 
192.10  dependent children, county supplementation, if any, or state aid 
192.11  to recipients of supplemental security income for aged, blind 
192.12  and disabled, child welfare services, mental health services, 
192.13  and other public assistance or public welfare services, provided 
192.14  that the local social services agency shall not employ public 
192.15  health nursing or home health service personnel other than 
192.16  homemaker-home help aides, but shall contract for or purchase 
192.17  the necessary services from existing community agencies.  The 
192.18  duties of the local social services agency shall be performed in 
192.19  accordance with the standards and rules which may be promulgated 
192.20  by the commissioner of human services to achieve the purposes 
192.21  intended by law and in order to comply with the requirements of 
192.22  the federal Social Security Act in respect to public assistance 
192.23  and child welfare services, so that the state may qualify for 
192.24  grants-in-aid available under that act.  To avoid administrative 
192.25  penalties under section 256.017, the local social services 
192.26  agency must comply with (1) policies established by state law 
192.27  and (2) instructions from the commissioner relating (i) to 
192.28  public assistance program policies consistent with federal law 
192.29  and regulation and state law and rule and (ii) to local agency 
192.30  program operations.  The commissioner may enforce local social 
192.31  services agency compliance with the instructions, and may delay, 
192.32  withhold, or deny payment of all or part of the state and 
192.33  federal share of benefits and federal administrative 
192.34  reimbursement, according to the provisions under section 
192.35  256.017.  The local social services agency shall supervise wards 
192.36  of the commissioner and, when so designated, act as agent of the 
193.1   commissioner of human services in the placement of the 
193.2   commissioner's wards in adoptive homes or in other foster care 
193.3   facilities.  The local social services agency shall cooperate as 
193.4   needed when the commissioner contracts with a licensed child 
193.5   placement agency for adoption services for a child under the 
193.6   commissioner's guardianship.  The local social services agency 
193.7   may contract with a bank or other financial institution to 
193.8   provide services associated with the processing of public 
193.9   assistance checks and pay a service fee for these services, 
193.10  provided the fee charged does not exceed the fee charged to 
193.11  other customers of the institution for similar services. 
193.12     Sec. 15.  Minnesota Statutes 1996, section 466.01, 
193.13  subdivision 1, is amended to read: 
193.14     Subdivision 1.  [MUNICIPALITY.] For the purposes of 
193.15  sections 466.01 to 466.15, "municipality" means any city, 
193.16  whether organized under home rule charter or otherwise, any 
193.17  county, town, public authority, public corporation, nonprofit 
193.18  firefighting corporation that has associated with it a relief 
193.19  association as defined in section 424A.001, subdivision 4, 
193.20  special district, school district, however organized, county 
193.21  agricultural society organized pursuant to chapter 38, joint 
193.22  powers board or organization created under section 471.59 or 
193.23  other statute, public library, regional public library system, 
193.24  multicounty multitype library system, family services 
193.25  collaborative established under section 121.8355, children's 
193.26  mental health collaboratives established under sections 245.491 
193.27  to 245.496, or a collaborative established by the merger of a 
193.28  children's mental health collaborative and a family services 
193.29  collaborative, other political subdivision, or community action 
193.30  agency. 
193.31     Sec. 16.  Minnesota Statutes 1996, section 471.59, 
193.32  subdivision 11, is amended to read: 
193.33     Subd. 11.  [JOINT POWERS BOARD.] (a) Two or more 
193.34  governmental units, through action of their governing bodies, by 
193.35  adoption of a joint powers agreement that complies with the 
193.36  provisions of subdivisions 1 to 5, may establish a joint board 
194.1   to issue bonds or obligations under any law by which any of the 
194.2   governmental units establishing the joint board may 
194.3   independently issue bonds or obligations and may use the 
194.4   proceeds of the bonds or obligations to carry out the purposes 
194.5   of the law under which the bonds or obligations are issued.  A 
194.6   joint board established under this section may issue obligations 
194.7   and other forms of indebtedness only in accordance with express 
194.8   authority granted by the action of the governing bodies of the 
194.9   governmental units that established the joint board.  Except as 
194.10  provided in paragraph (b), the joint board established under 
194.11  this subdivision must be composed solely of members of the 
194.12  governing bodies of the governmental unit that established the 
194.13  joint board.  A joint board established under this subdivision 
194.14  may not pledge the full faith and credit or taxing power of any 
194.15  of the governmental units that established the joint board.  The 
194.16  obligations or other forms of indebtedness must be obligations 
194.17  of the joint board issued on behalf of the governmental units 
194.18  creating the joint board.  The obligations or other forms of 
194.19  indebtedness must be issued in the same manner and subject to 
194.20  the same conditions and limitations that would apply if the 
194.21  obligations were issued or indebtedness incurred by one of the 
194.22  governmental units that established the joint board, provided 
194.23  that any reference to a governmental unit in the statute, law, 
194.24  or charter provision authorizing the issuance of the bonds or 
194.25  the incurring of the indebtedness is considered a reference to 
194.26  the joint board. 
194.27     (b) Notwithstanding paragraph (a), one school district, one 
194.28  county, and one public health entity, through action of their 
194.29  governing bodies, may establish a joint board to establish and 
194.30  govern a family services collaborative under section 121.8355.  
194.31  The school district, county, and public health entity may 
194.32  include other governmental entities at their discretion.  The 
194.33  membership of a board established under this paragraph, in 
194.34  addition to members of the governing bodies of the participating 
194.35  governmental units, must include the representation required by 
194.36  section 121.8355, subdivision 1, paragraph (a), selected in 
195.1   accordance with section 121.8355, subdivision 1, paragraph (c). 
195.2      (c) Notwithstanding paragraph (a), counties, school 
195.3   districts, and mental health entities, through action of their 
195.4   governing bodies, may establish a joint board to establish and 
195.5   govern a children's mental health collaborative under sections 
195.6   245.491 to 245.496, or a collaborative established by the merger 
195.7   of a children's mental health collaborative and a family 
195.8   services collaborative under section 121.8355.  The county, 
195.9   school district, and mental health entities may include other 
195.10  entities at their discretion.  The membership of a board 
195.11  established under this paragraph, in addition to members of the 
195.12  governing bodies of the participating governmental units, must 
195.13  include the representation provided by section 245.493, 
195.14  subdivision 1. 
195.15     Sec. 17.  Minnesota Statutes 1996, section 626.556, 
195.16  subdivision 10b, is amended to read: 
195.17     Subd. 10b.  [DUTIES OF COMMISSIONER; NEGLECT OR ABUSE IN A 
195.18  FACILITY.] (a) The commissioner shall immediately investigate if 
195.19  the report alleges that: 
195.20     (1) a child who is in the care of a facility as defined in 
195.21  subdivision 2 is neglected, physically abused, or sexually 
195.22  abused by an individual in that facility, or has been so 
195.23  neglected or abused by an individual in that facility within the 
195.24  three years preceding the report; or 
195.25     (2) a child was neglected, physically abused, or sexually 
195.26  abused by an individual in a facility defined in subdivision 2, 
195.27  while in the care of that facility within the three years 
195.28  preceding the report.  
195.29     The commissioner shall arrange for the transmittal to the 
195.30  commissioner of reports received by local agencies and may 
195.31  delegate to a local welfare agency the duty to investigate 
195.32  reports.  In conducting an investigation under this section, the 
195.33  commissioner has the powers and duties specified for local 
195.34  welfare agencies under this section.  The commissioner or local 
195.35  welfare agency may interview any children who are or have been 
195.36  in the care of a facility under investigation and their parents, 
196.1   guardians, or legal custodians. 
196.2      (b) Prior to any interview, the commissioner or local 
196.3   welfare agency shall notify the parent, guardian, or legal 
196.4   custodian of a child who will be interviewed in the manner 
196.5   provided for in subdivision 10d, paragraph (a).  If reasonable 
196.6   efforts to reach the parent, guardian, or legal custodian of a 
196.7   child in an out-of-home placement have failed, the child may be 
196.8   interviewed if there is reason to believe the interview is 
196.9   necessary to protect the child or other children in the 
196.10  facility.  The commissioner or local agency must provide the 
196.11  information required in this subdivision to the parent, 
196.12  guardian, or legal custodian of a child interviewed without 
196.13  parental notification as soon as possible after the interview.  
196.14  When the investigation is completed, any parent, guardian, or 
196.15  legal custodian notified under this subdivision shall receive 
196.16  the written memorandum provided for in subdivision 10d, 
196.17  paragraph (c). 
196.18     (c) In conducting investigations under this subdivision the 
196.19  commissioner or local welfare agency shall obtain access to 
196.20  information consistent with subdivision 10, paragraphs (h), (i), 
196.21  and (j). 
196.22     (d) Except for foster care and family child care, the 
196.23  commissioner has the primary responsibility for the 
196.24  investigations and notifications required under subdivisions 10d 
196.25  and 10f for reports that allege maltreatment related to the care 
196.26  provided by or in facilities licensed by the commissioner.  The 
196.27  commissioner may request assistance from the local social 
196.28  service agency. 
196.29     Sec. 18.  Minnesota Statutes 1996, section 626.556, 
196.30  subdivision 10d, is amended to read: 
196.31     Subd. 10d.  [NOTIFICATION OF NEGLECT OR ABUSE IN A 
196.32  FACILITY.] (a) When a report is received that alleges neglect, 
196.33  physical abuse, or sexual abuse of a child while in the care of 
196.34  a facility required to be licensed pursuant to sections 245A.01 
196.35  to 245A.16 chapter 245A, the commissioner or local welfare 
196.36  agency investigating the report shall provide the following 
197.1   information to the parent, guardian, or legal custodian of a 
197.2   child alleged to have been neglected, physically abused, or 
197.3   sexually abused: the name of the facility; the fact that a 
197.4   report alleging neglect, physical abuse, or sexual abuse of a 
197.5   child in the facility has been received; the nature of the 
197.6   alleged neglect, physical abuse, or sexual abuse; that the 
197.7   agency is conducting an investigation; any protective or 
197.8   corrective measures being taken pending the outcome of the 
197.9   investigation; and that a written memorandum will be provided 
197.10  when the investigation is completed. 
197.11     (b) The commissioner or local welfare agency may also 
197.12  provide the information in paragraph (a) to the parent, 
197.13  guardian, or legal custodian of any other child in the facility 
197.14  if the investigative agency knows or has reason to believe the 
197.15  alleged neglect, physical abuse, or sexual abuse has occurred. 
197.16  In determining whether to exercise this authority, the 
197.17  commissioner or local welfare agency shall consider the 
197.18  seriousness of the alleged neglect, physical abuse, or sexual 
197.19  abuse; the number of children allegedly neglected, physically 
197.20  abused, or sexually abused; the number of alleged perpetrators; 
197.21  and the length of the investigation.  The facility shall be 
197.22  notified whenever this discretion is exercised. 
197.23     (c) When the commissioner or local welfare agency has 
197.24  completed its investigation, every parent, guardian, or legal 
197.25  custodian notified of the investigation by the commissioner or 
197.26  local welfare agency shall be provided with the following 
197.27  information in a written memorandum:  the name of the facility 
197.28  investigated; the nature of the alleged neglect, physical abuse, 
197.29  or sexual abuse; the investigator's name; a summary of the 
197.30  investigation findings; a statement whether maltreatment was 
197.31  found; and the protective or corrective measures that are being 
197.32  or will be taken.  The memorandum shall be written in a manner 
197.33  that protects the identity of the reporter and the child and 
197.34  shall not contain the name, or to the extent possible, reveal 
197.35  the identity of the alleged perpetrator or of those interviewed 
197.36  during the investigation.  The commissioner or local welfare 
198.1   agency shall also provide the written memorandum to the parent, 
198.2   guardian, or legal custodian of each child in the facility if 
198.3   maltreatment is determined to exist. 
198.4      Sec. 19.  Minnesota Statutes 1996, section 626.556, 
198.5   subdivision 10e, is amended to read: 
198.6      Subd. 10e.  [DETERMINATIONS.] Upon the conclusion of every 
198.7   assessment or investigation it conducts, the local welfare 
198.8   agency shall make two determinations:  first, whether 
198.9   maltreatment has occurred; and second, whether child protective 
198.10  services are needed.  When maltreatment is determined in an 
198.11  investigation involving a facility, the investigating agency 
198.12  shall also determine whether the facility or individual was 
198.13  responsible for the maltreatment using the mitigating factors in 
198.14  paragraph (d).  Determinations under this subdivision must be 
198.15  made based on a preponderance of the evidence. 
198.16     (a) For the purposes of this subdivision, "maltreatment" 
198.17  means any of the following acts or omissions committed by a 
198.18  person responsible for the child's care: 
198.19     (1) physical abuse as defined in subdivision 2, paragraph 
198.20  (d); 
198.21     (2) neglect as defined in subdivision 2, paragraph (c); 
198.22     (3) sexual abuse as defined in subdivision 2, paragraph 
198.23  (a); or 
198.24     (4) mental injury as defined in subdivision 2, paragraph 
198.25  (k). 
198.26     (b) For the purposes of this subdivision, a determination 
198.27  that child protective services are needed means that the local 
198.28  welfare agency has documented conditions during the assessment 
198.29  or investigation sufficient to cause a child protection worker, 
198.30  as defined in section 626.559, subdivision 1, to conclude that a 
198.31  child is at significant risk of maltreatment if protective 
198.32  intervention is not provided and that the individuals 
198.33  responsible for the child's care have not taken or are not 
198.34  likely to take actions to protect the child from maltreatment or 
198.35  risk of maltreatment. 
198.36     (c) This subdivision does not mean that maltreatment has 
199.1   occurred solely because the child's parent, guardian, or other 
199.2   person responsible for the child's care in good faith selects 
199.3   and depends upon spiritual means or prayer for treatment or care 
199.4   of disease or remedial care of the child, in lieu of medical 
199.5   care.  However, if lack of medical care may result in serious 
199.6   danger to the child's health, the local welfare agency may 
199.7   ensure that necessary medical services are provided to the child.
199.8      (d) When determining whether the facility or individual is 
199.9   the responsible party for determined maltreatment in a facility, 
199.10  the investigating agency shall consider at least the following 
199.11  mitigating factors: 
199.12     (1) whether the actions of the facility or the individual 
199.13  caregivers were in accordance with, and followed the terms of, 
199.14  an erroneous physician order, prescription, individual care 
199.15  plan, or directive; however, this is not a mitigating factor 
199.16  when the facility or caregiver was responsible for the issuance 
199.17  of the erroneous order, prescription, individual care plan, or 
199.18  directive or knew or should have known of the errors and took no 
199.19  reasonable measures to correct the defect before administering 
199.20  care; 
199.21     (2) comparative responsibility between the facility, other 
199.22  caregivers, and requirements placed upon an employee, including 
199.23  the facility's compliance with related regulatory standards and 
199.24  the adequacy of facility policies and procedures, facility 
199.25  training, an individual's participation in the training, the 
199.26  caregiver's supervision, and facility staffing levels and the 
199.27  scope of the individual employee's authority and discretion; and 
199.28     (3) whether the facility or individual followed 
199.29  professional standards in exercising professional judgment. 
199.30     Sec. 20.  Minnesota Statutes 1996, section 626.556, 
199.31  subdivision 10f, is amended to read: 
199.32     Subd. 10f.  [NOTICE OF DETERMINATIONS.] Within ten working 
199.33  days of the conclusion of an assessment, the local welfare 
199.34  agency shall notify the parent or guardian of the child, the 
199.35  person determined to be maltreating the child, and if 
199.36  applicable, the director of the facility, of the determination 
200.1   and a summary of the specific reasons for the determination.  
200.2   The notice must also include a certification that the 
200.3   information collection procedures under subdivision 10, 
200.4   paragraphs (h), (i), and (j), were followed and a notice of the 
200.5   right of a data subject to obtain access to other private data 
200.6   on the subject collected, created, or maintained under this 
200.7   section.  In addition, the notice shall include the length of 
200.8   time that the records will be kept under subdivision 11c.  When 
200.9   there is no determination of either maltreatment or a need for 
200.10  services, the notice shall also include the alleged 
200.11  perpetrator's right to have the records destroyed.  The 
200.12  investigating agency shall notify the designee of the child who 
200.13  is the subject of the report, and any person or facility 
200.14  determined to have maltreated a child, of their appeal rights 
200.15  under this section. 
200.16     Sec. 21.  Minnesota Statutes 1996, section 626.556, is 
200.17  amended by adding a subdivision to read: 
200.18     Subd. 10i.  [ADMINISTRATIVE RECONSIDERATION OF THE FINAL 
200.19  DETERMINATION OF MALTREATMENT.] (a) An individual or facility 
200.20  that the commissioner or a local social service agency 
200.21  determines has maltreated a child, or the child's designee, 
200.22  regardless of the determination, who contests the investigating 
200.23  agency's final determination regarding maltreatment, may request 
200.24  the investigating agency to reconsider its final determination 
200.25  regarding maltreatment.  The request for reconsideration must be 
200.26  submitted in writing to the investigating agency within 15 
200.27  calendar days after receipt of notice of the final determination 
200.28  regarding maltreatment. 
200.29     (b) If the investigating agency denies the request or fails 
200.30  to act upon the request within 15 calendar days after receiving 
200.31  the request for reconsideration, the person or facility entitled 
200.32  to a fair hearing under section 256.045 may submit to the 
200.33  commissioner of human services a written request for a hearing 
200.34  under that section. 
200.35     (c) If, as a result of the reconsideration, the 
200.36  investigating agency changes the final determination of 
201.1   maltreatment, it shall notify the parties specified in 
201.2   subdivisions 10b, 10d, and 10f. 
201.3      Sec. 22.  Minnesota Statutes 1996, section 626.556, 
201.4   subdivision 11c, is amended to read: 
201.5      Subd. 11c.  [WELFARE, COURT SERVICES AGENCY, AND SCHOOL 
201.6   RECORDS MAINTAINED.] Notwithstanding sections 138.163 and 
201.7   138.17, records maintained or records derived from reports of 
201.8   abuse by local welfare agencies, court services agencies, or 
201.9   schools under this section shall be destroyed as provided in 
201.10  paragraphs (a) to (d) by the responsible authority. 
201.11     (a) If upon assessment or investigation there is no 
201.12  determination of maltreatment or the need for child protective 
201.13  services, the records may be maintained for a period of four 
201.14  years.  After the individual alleged to have maltreated a child 
201.15  is notified under subdivision 10f of the determinations at the 
201.16  conclusion of the assessment or investigation, upon that 
201.17  individual's request, records shall be destroyed within 30 
201.18  days or after the appeal rights under subdivision 10i have been 
201.19  concluded, whichever is later. 
201.20     (b) All records relating to reports which, upon assessment 
201.21  or investigation, indicate either maltreatment or a need for 
201.22  child protective services shall be maintained for at least ten 
201.23  years after the date of the final entry in the case record. 
201.24     (c) All records regarding a report of maltreatment, 
201.25  including any notification of intent to interview which was 
201.26  received by a school under subdivision 10, paragraph (d), shall 
201.27  be destroyed by the school when ordered to do so by the agency 
201.28  conducting the assessment or investigation.  The agency shall 
201.29  order the destruction of the notification when other records 
201.30  relating to the report under investigation or assessment are 
201.31  destroyed under this subdivision. 
201.32     (d) Private or confidential data released to a court 
201.33  services agency under subdivision 10h must be destroyed by the 
201.34  court services agency when ordered to do so by the local welfare 
201.35  agency that released the data.  The local welfare agency shall 
201.36  order destruction of the data when other records relating to the 
202.1   assessment or investigation are destroyed under this subdivision.
202.2      Sec. 23.  Minnesota Statutes 1996, section 626.558, 
202.3   subdivision 1, is amended to read: 
202.4      Subdivision 1.  [ESTABLISHMENT OF THE TEAM.] A county shall 
202.5   establish a multidisciplinary child protection team that may 
202.6   include, but not be limited to, the director of the local 
202.7   welfare agency or designees, the county attorney or designees, 
202.8   the county sheriff or designees, representatives of health and 
202.9   education, representatives of mental health or other appropriate 
202.10  human service or community-based agencies, and parent groups.  
202.11  As used in this section, a "community-based agency" may include, 
202.12  but is not limited to, schools, social service agencies, family 
202.13  service and mental health collaboratives, early childhood and 
202.14  family education programs, Head Start, or other agencies serving 
202.15  children and families. 
202.16     Sec. 24.  Minnesota Statutes 1996, section 626.558, 
202.17  subdivision 2, is amended to read: 
202.18     Subd. 2.  [DUTIES OF TEAM.] A multidisciplinary child 
202.19  protection team may provide public and professional education, 
202.20  develop resources for prevention, intervention, and treatment, 
202.21  and provide case consultation to the local welfare agency to 
202.22  better enable the agency to carry out its child protection 
202.23  functions under section 626.556 and the community social 
202.24  services act. or other interested community-based agencies.  The 
202.25  community-based agencies may request case consultation from the 
202.26  multidisciplinary child protection team regarding a child or 
202.27  family for whom the community-based agency is providing 
202.28  services.  As used in this section, "case consultation" means a 
202.29  case review process in which recommendations are made concerning 
202.30  services to be provided to the identified children and family.  
202.31  Case consultation may be performed by a committee or 
202.32  subcommittee of members representing human services, including 
202.33  mental health and chemical dependency; law enforcement, 
202.34  including probation and parole; the county attorney; health 
202.35  care; education; community-based agencies and other necessary 
202.36  agencies; and persons directly involved in an individual case as 
203.1   designated by other members performing case consultation. 
203.2      Sec. 25.  Minnesota Statutes 1996, section 626.559, 
203.3   subdivision 5, is amended to read: 
203.4      Subd. 5.  [TRAINING REVENUE.] The commissioner of human 
203.5   services shall add the following funds to the funds appropriated 
203.6   under section 626.5591, subdivision 2, to develop and support 
203.7   training: 
203.8      (a) The commissioner of human services shall submit claims 
203.9   for federal reimbursement earned through the activities and 
203.10  services supported through department of human services child 
203.11  protection or child welfare training funds.  Federal revenue 
203.12  earned must be used to improve and expand training services by 
203.13  the department.  The department expenditures eligible for 
203.14  federal reimbursement under this section must not be made from 
203.15  federal funds or funds used to match other federal funds. 
203.16     (b) Each year, the commissioner of human services shall 
203.17  withhold from funds distributed to each county under Minnesota 
203.18  Rules, parts 9550.0300 to 9550.0370, an amount equivalent to 1.5 
203.19  percent of each county's annual Title XX allocation under 
203.20  section 256E.07.  The commissioner must use these funds to 
203.21  ensure decentralization of training. 
203.22     (c) The federal revenue earned under this subdivision is 
203.23  available for these purposes until the funds are expended. 
203.24     Sec. 26.  [EVALUATION REPORT REQUIRED.] 
203.25     The commissioner shall report the results of the evaluation 
203.26  required under section 5 to the chairs of the house and senate 
203.27  health and human services policy committees by January 1, 1999. 
203.28     Sec. 27.  [UNIFORM CONTRIBUTION SCHEDULE FOR OUT-OF-HOME 
203.29  PLACEMENT; REPORT.] 
203.30     The commissioner of human services shall prepare 
203.31  recommendations and report to the 1998 legislature regarding a 
203.32  uniform relative contribution schedule to reimburse costs 
203.33  associated with out-of-home placement.  The commissioner shall 
203.34  use the child support guidelines in Minnesota Statutes, chapter 
203.35  518, as the basis for the uniform contribution schedule.  The 
203.36  recommendations and report are due December 1, 1997. 
204.1      Sec. 28.  [MALTREATMENT OF MINORS ADVISORY COMMITTEE.] 
204.2      The commissioner of human services, with the cooperation of 
204.3   the commissioners of health and children, families, and learning 
204.4   and the attorney general, shall establish an advisory committee 
204.5   to review the Maltreatment of Minors Act, Minnesota Statutes, 
204.6   section 626.556, to determine whether existing state policy and 
204.7   procedures for protecting children who are at risk of 
204.8   maltreatment in the home, school, or community are effective. 
204.9      The committee shall include consumers, advocacy and 
204.10  provider organizations, county practitioners and administrators, 
204.11  school districts, law enforcement agencies, communities of 
204.12  color, professional associations, labor organizations, office of 
204.13  the ombudsman for mental health and mental retardation, and the 
204.14  commissioners of health, human services, and children, families, 
204.15  and learning. 
204.16     In making recommendations, the advisory committee shall 
204.17  review all services and protections available under existing 
204.18  state and federal laws with the focus on eliminating duplication 
204.19  of effort among various local, state, and federal agencies and 
204.20  minimizing possible conflicts of interest by establishing a 
204.21  statewide process of coordination of responsibilities.  The 
204.22  advisory committee shall submit a report to the legislature by 
204.23  February 15, 1998, that includes a detailed plan with specific 
204.24  law, rule, or administrative procedure changes to implement the 
204.25  recommendations. 
204.26                             ARTICLE 6
204.27                     CHILD SUPPORT ENFORCEMENT
204.28     Section 1.  Minnesota Statutes 1996, section 13.46, 
204.29  subdivision 2, is amended to read: 
204.30     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
204.31  a statute specifically provides a different classification, data 
204.32  on individuals collected, maintained, used, or disseminated by 
204.33  the welfare system is private data on individuals, and shall not 
204.34  be disclosed except:  
204.35     (1) pursuant according to section 13.05; 
204.36     (2) pursuant according to court order; 
205.1      (3) pursuant according to a statute specifically 
205.2   authorizing access to the private data; 
205.3      (4) to an agent of the welfare system, including a law 
205.4   enforcement person, attorney, or investigator acting for it in 
205.5   the investigation or prosecution of a criminal or civil 
205.6   proceeding relating to the administration of a program; 
205.7      (5) to personnel of the welfare system who require the data 
205.8   to determine eligibility, amount of assistance, and the need to 
205.9   provide services of additional programs to the individual; 
205.10     (6) to administer federal funds or programs; 
205.11     (7) between personnel of the welfare system working in the 
205.12  same program; 
205.13     (8) the amounts of cash public assistance and relief paid 
205.14  to welfare recipients in this state, including their names, 
205.15  social security numbers, income, addresses, and other data as 
205.16  required, upon request by the department of revenue to 
205.17  administer the property tax refund law, supplemental housing 
205.18  allowance, early refund of refundable tax credits, and the 
205.19  income tax.  "Refundable tax credits" means the dependent care 
205.20  credit under section 290.067, the Minnesota working family 
205.21  credit under section 290.0671, the property tax refund under 
205.22  section 290A.04, and, if the required federal waiver or waivers 
205.23  are granted, the federal earned income tax credit under section 
205.24  32 of the Internal Revenue Code; 
205.25     (9) to the Minnesota department of economic security for 
205.26  the purpose of monitoring the eligibility of the data subject 
205.27  for reemployment insurance, for any employment or training 
205.28  program administered, supervised, or certified by that agency, 
205.29  or for the purpose of administering any rehabilitation program, 
205.30  whether alone or in conjunction with the welfare system, and to 
205.31  verify receipt of energy assistance for the telephone assistance 
205.32  plan; 
205.33     (10) to appropriate parties in connection with an emergency 
205.34  if knowledge of the information is necessary to protect the 
205.35  health or safety of the individual or other individuals or 
205.36  persons; 
206.1      (11) data maintained by residential programs as defined in 
206.2   section 245A.02 may be disclosed to the protection and advocacy 
206.3   system established in this state pursuant according to Part C of 
206.4   Public Law Number 98-527 to protect the legal and human rights 
206.5   of persons with mental retardation or other related conditions 
206.6   who live in residential facilities for these persons if the 
206.7   protection and advocacy system receives a complaint by or on 
206.8   behalf of that person and the person does not have a legal 
206.9   guardian or the state or a designee of the state is the legal 
206.10  guardian of the person; 
206.11     (12) to the county medical examiner or the county coroner 
206.12  for identifying or locating relatives or friends of a deceased 
206.13  person; 
206.14     (13) data on a child support obligor who makes payments to 
206.15  the public agency may be disclosed to the higher education 
206.16  services office to the extent necessary to determine eligibility 
206.17  under section 136A.121, subdivision 2, clause (5); 
206.18     (14) participant social security numbers and names 
206.19  collected by the telephone assistance program may be disclosed 
206.20  to the department of revenue to conduct an electronic data match 
206.21  with the property tax refund database to determine eligibility 
206.22  under section 237.70, subdivision 4a; 
206.23     (15) the current address of a recipient of aid to families 
206.24  with dependent children may be disclosed to law enforcement 
206.25  officers who provide the name and social security number of the 
206.26  recipient and satisfactorily demonstrate that:  (i) the 
206.27  recipient is a fugitive felon, including the grounds for this 
206.28  determination; (ii) the location or apprehension of the felon is 
206.29  within the law enforcement officer's official duties; and (iii) 
206.30  the request is made in writing and in the proper exercise of 
206.31  those duties; 
206.32     (16) the current address of a recipient of general 
206.33  assistance, work readiness, or general assistance medical care 
206.34  may be disclosed to probation officers and corrections agents 
206.35  who are supervising the recipient, and to law enforcement 
206.36  officers who are investigating the recipient in connection with 
207.1   a felony level offense; 
207.2      (17) information obtained from food stamp applicant or 
207.3   recipient households may be disclosed to local, state, or 
207.4   federal law enforcement officials, upon their written request, 
207.5   for the purpose of investigating an alleged violation of the 
207.6   food stamp act, in accordance with Code of Federal Regulations, 
207.7   title 7, section 272.1(c); 
207.8      (18) data on a child support obligor who is in arrears may 
207.9   be disclosed for purposes of publishing the data pursuant to 
207.10  section 518.575; 
207.11     (19) data on child support payments made by a child support 
207.12  obligor may be disclosed to the obligee; 
207.13     (20) data in the work reporting system may be disclosed 
207.14  under section 256.998, subdivision 7; 
207.15     (21) to the department of children, families, and learning 
207.16  for the purpose of matching department of children, families, 
207.17  and learning student data with public assistance data to 
207.18  determine students eligible for free and reduced price meals, 
207.19  meal supplements, and free milk pursuant according to United 
207.20  States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 
207.21  and 1773; to produce accurate numbers of students receiving aid 
207.22  to families with dependent children as required by section 
207.23  124.175; and to allocate federal and state funds that are 
207.24  distributed based on income of the student's family; or 
207.25     (22) the current address and telephone number of program 
207.26  recipients and emergency contacts may be released to the 
207.27  commissioner of health or a local board of health as defined in 
207.28  section 145A.02, subdivision 2, when the commissioner or local 
207.29  board of health has reason to believe that a program recipient 
207.30  is a disease case, carrier, suspect case, or at risk of illness, 
207.31  and the data are necessary to locate the person.; or 
207.32     (23) to other agencies, statewide systems, and political 
207.33  subdivisions of this state, including the attorney general, and 
207.34  agencies of other states, interstate information networks, 
207.35  federal agencies, and other entities as required by federal 
207.36  regulation or law for the administration of the child support 
208.1   enforcement program. 
208.2      (b) Information on persons who have been treated for drug 
208.3   or alcohol abuse may only be disclosed in accordance with the 
208.4   requirements of Code of Federal Regulations, title 42, sections 
208.5   2.1 to 2.67. 
208.6      (c) Data provided to law enforcement agencies under 
208.7   paragraph (a), clause (15), (16), or (17), or paragraph (b), are 
208.8   investigative data and are confidential or protected nonpublic 
208.9   while the investigation is active.  The data are private after 
208.10  the investigation becomes inactive under section 13.82, 
208.11  subdivision 5, paragraph (a) or (b). 
208.12     (d) Mental health data shall be treated as provided in 
208.13  subdivisions 7, 8, and 9, but is not subject to the access 
208.14  provisions of subdivision 10, paragraph (b). 
208.15     Sec. 2.  Minnesota Statutes 1996, section 13.99, is amended 
208.16  by adding a subdivision to read: 
208.17     Subd. 101d.  [CHILD SUPPORT PARTIES.] Certain data 
208.18  regarding the location of parties in connection with child 
208.19  support proceedings are governed by sections 256.87, subdivision 
208.20  8; 257.70; and 518.005, subdivision 5.  Certain data on newly 
208.21  hired employees maintained by the public authority for support 
208.22  enforcement are governed by section 256.998. 
208.23     Sec. 3.  [13B.06] [CHILD SUPPORT OR MAINTENANCE OBLIGOR 
208.24  DATA MATCHES.] 
208.25     Subdivision 1.  [DEFINITIONS.] The definitions in this 
208.26  subdivision apply to this section. 
208.27     (a) "Account" means a demand deposit account, checking or 
208.28  negotiable withdraw order account, savings account, time deposit 
208.29  account, or money market mutual fund. 
208.30     (b) "Account information" means the type of account, the 
208.31  account number, whether the account is singly or jointly owned, 
208.32  and, in the case of jointly owned accounts, the name and address 
208.33  of the nonobligor account owner if available. 
208.34     (c) "Financial institution" means any of the following that 
208.35  do business within the state: 
208.36     (1) federal or state commercial banks and federal or state 
209.1   savings banks, including savings and loan associations and 
209.2   cooperative banks; 
209.3      (2) federal and state chartered credit unions; 
209.4      (3) benefit associations; 
209.5      (4) life insurance companies; 
209.6      (5) safe deposit companies; and 
209.7      (6) money market mutual funds. 
209.8      (d) "Obligor" means an individual who is in arrears in 
209.9   court-ordered child support or maintenance payments, or both, in 
209.10  an amount equal to or greater than three times the obligor's 
209.11  total monthly support and maintenance payments, irrespective of 
209.12  when the arrears arose, and is not in compliance with a written 
209.13  payment agreement regarding both current support and arrearages 
209.14  approved by the court, an administrative law judge, or the 
209.15  public authority. 
209.16     (e) "Public authority" means the public authority 
209.17  responsible for child support enforcement. 
209.18     Subd. 2.  [DATA MATCH SYSTEM ESTABLISHED.] The commissioner 
209.19  of human services shall establish a process for the comparison 
209.20  of account information data held by financial institutions with 
209.21  the public authority's database of child support obligors.  The 
209.22  commissioner shall inform the financial industry of the 
209.23  requirements of this section and the means by which financial 
209.24  institutions can comply.  The commissioner may contract for 
209.25  services to carry out this section. 
209.26     Subd. 3.  [DUTY TO PROVIDE DATA.] On written request by a 
209.27  public authority, a financial institution shall provide to the 
209.28  public authority on a quarterly basis the name, address, social 
209.29  security number, tax identification number if known, and all 
209.30  account information for each obligor who maintains an account at 
209.31  the financial institution. 
209.32     Subd. 4.  [METHOD TO PROVIDE DATA.] (a) To comply with the 
209.33  requirements of this section, a financial institution may either:
209.34     (1) provide to the public authority a list of all account 
209.35  holders for the public authority to compare against its list of 
209.36  child support obligors for the purpose of identifying which 
210.1   obligors maintain an account at the financial institution; or 
210.2      (2) obtain a list of child support obligors from the public 
210.3   authority and compare that data to the data maintained at the 
210.4   financial institution to identify which of the identified 
210.5   obligors maintains an account at the financial institution. 
210.6      (b) A financial institution shall elect either method in 
210.7   writing upon written request of the public authority, and the 
210.8   election remains in effect unless the public authority agrees in 
210.9   writing to a change. 
210.10     (c) The commissioner shall keep track of the number of 
210.11  financial institutions who are electing to report under 
210.12  paragraph (a), clauses (1) and (2), respectively, and shall 
210.13  report this information to the legislature by December 1, 1999. 
210.14     Subd. 5.  [MEANS TO PROVIDE DATA.] A financial institution 
210.15  may provide the required data by submitting electronic media in 
210.16  a compatible format, delivering, mailing, or telefaxing a copy 
210.17  of the data, or by other means authorized by the commissioner of 
210.18  human services that will result in timely reporting. 
210.19     Subd. 6.  [ACCESS TO DATA.] (a) With regard to account 
210.20  information on all account holders provided by a financial 
210.21  institution under subdivision 4, paragraph (a), clause (1), the 
210.22  commissioner of human services shall retain the reported 
210.23  information only until the account information is compared 
210.24  against the public authority's obligor database.  
210.25  Notwithstanding section 138.17, all account information that 
210.26  does not pertain to an obligor listed in the public authority's 
210.27  database must be immediately discarded, and no retention or 
210.28  publication may be made of that data by the public authority.  
210.29  All account information that does pertain to an obligor listed 
210.30  in the public authority's database must be incorporated into the 
210.31  public authority's database.  Access to that data is governed by 
210.32  chapter 13. 
210.33     (b) With regard to data on obligors provided by the public 
210.34  authority to a financial institution under subdivision 4, 
210.35  paragraph (a), clause (2), the financial institution shall 
210.36  retain the reported information only until the financial 
211.1   institution's database is compared against the public 
211.2   authority's database.  All data that does not pertain to an 
211.3   account holder at the financial institution must be immediately 
211.4   discarded, and no retention or publication may be made of that 
211.5   data by the financial institution. 
211.6      Subd. 7.  [FEES.] A financial institution may charge and 
211.7   collect a fee from the public authority for providing account 
211.8   information to the public authority.  No financial institution 
211.9   shall charge or collect a fee that exceeds its actual costs of 
211.10  complying with this section.  The commissioner, together with an 
211.11  advisory group consisting of representatives of the financial 
211.12  institutions in the state, shall determine a fee structure that 
211.13  minimizes the cost to the state and reasonably meets the needs 
211.14  of the financial institutions, and shall report to the chairs of 
211.15  the judiciary committees in the house of representatives and the 
211.16  senate by February 1, 1998, a recommended fee structure for 
211.17  inclusion in this section. 
211.18     Subd. 8.  [FAILURE TO RESPOND TO REQUEST FOR 
211.19  INFORMATION.] The public authority shall send by certified mail 
211.20  a written notice of noncompliance to a financial institution 
211.21  that fails to respond to a first written request for information 
211.22  under this section.  The notice of noncompliance must explain 
211.23  the requirements of this section and advise the financial 
211.24  institution of the penalty for noncompliance.  A financial 
211.25  institution that receives a second notice of noncompliance is 
211.26  subject to a civil penalty of $1,000 for its failure to comply.  
211.27  A financial institution that continues to fail to comply with 
211.28  this section is subject to a civil penalty of $5,000 for the 
211.29  third and each subsequent failure to comply.  These penalties 
211.30  may be imposed and collected by the public authority. 
211.31     A financial institution that has been served with a notice 
211.32  of noncompliance and incurs a second or subsequent notice of 
211.33  noncompliance has the right to a contested case hearing under 
211.34  chapter 14.  A financial institution has 20 days from the date 
211.35  of the service of the notice of noncompliance to file a request 
211.36  for a contested case hearing with the commissioner.  The order 
212.1   of the administrative law judge constitutes the final decision 
212.2   in the case. 
212.3      Subd. 9.  [IMMUNITY.] A financial institution that provides 
212.4   or reasonably attempts to provide information to the public 
212.5   authority in compliance with this section is not liable to any 
212.6   person for disclosing the information or for taking any other 
212.7   action in good faith as authorized by this section or section 
212.8   548.092.  
212.9      Subd. 10.  [CIVIL ACTION FOR UNAUTHORIZED DISCLOSURE BY 
212.10  FINANCIAL INSTITUTION.] (a) An account holder may bring a civil 
212.11  action in district court against a financial institution for 
212.12  unauthorized disclosure of data received from the public 
212.13  authority under subdivision 4, paragraph (a), clause (2).  A 
212.14  financial institution found to have violated this subdivision 
212.15  shall be liable as provided in paragraph (b) or (c). 
212.16     (b) Any financial institution that willfully and 
212.17  maliciously discloses data received from the public authority 
212.18  under subdivision 4 is liable to that account holder in an 
212.19  amount equal to the sum of: 
212.20     (1) any actual damages sustained by the consumer as a 
212.21  result of the disclosure; and 
212.22     (2) in the case of any successful action to enforce any 
212.23  liability under this section, the costs of the action taken and 
212.24  reasonable attorney fees as determined by the court. 
212.25     (c) Any financial institution that negligently discloses 
212.26  data received from the public authority under subdivision 4 is 
212.27  liable to that account holder in an amount equal to any actual 
212.28  damages sustained by the account holder as a result of the 
212.29  disclosure. 
212.30     (d) A financial institution may not be held liable in any 
212.31  action brought under this subdivision if the financial 
212.32  institution shows, by a preponderance of evidence, that the 
212.33  disclosure was not intentional and resulted from a bona fide 
212.34  error notwithstanding the maintenance of procedures reasonably 
212.35  adapted to avoid any error. 
212.36     Sec. 4.  [256.741] [CHILD SUPPORT AND MAINTENANCE.] 
213.1      Subdivision 1.  [PUBLIC ASSISTANCE.] (a) The term "public 
213.2   assistance" as used in this chapter and chapters 257, 518, and 
213.3   518C includes any form of cash assistance provided under Title 
213.4   IV-A of the Social Security Act, including child care 
213.5   assistance; any form of medical assistance as defined under 
213.6   Title XIX of the Social Security Act, including MinnesotaCare; 
213.7   and foster care as provided under Title IV-E of the Social 
213.8   Security Act. 
213.9      (b) The term "child support agency" as used in this section 
213.10  refers to the public authority responsible for child support 
213.11  enforcement. 
213.12     (c) The term "public assistance agency" as used in this 
213.13  section refers to any public authority providing public 
213.14  assistance to an individual. 
213.15     Subd. 2.  [ASSIGNMENT OF SUPPORT AND MAINTENANCE 
213.16  RIGHTS.] (a) An individual receiving public assistance in the 
213.17  form of cash assistance is considered to have assigned to the 
213.18  state at the time of application all rights to child support and 
213.19  maintenance from any other person the applicant or recipient may 
213.20  have in the individual's own behalf or in the behalf of any 
213.21  other family member for whom application for public assistance 
213.22  is made.  An assistance unit is ineligible for aid to families 
213.23  with dependent children or its successor program unless the 
213.24  caregiver assigns all rights to child support and spousal 
213.25  maintenance benefits under this section. 
213.26     (1) An assignment made according to this section is 
213.27  effective as to: 
213.28     (i) any current child support and current spousal 
213.29  maintenance; and 
213.30     (ii) any accrued child support and spousal maintenance 
213.31  arrears. 
213.32     (2) An assignment made after September 30, 1997, is 
213.33  effective as to: 
213.34     (i) any current child support and current spousal 
213.35  maintenance; 
213.36     (ii) any accrued child support and spousal maintenance 
214.1   arrears collected before October 1, 2000; and 
214.2      (iii) any accrued child support and spousal maintenance 
214.3   arrears collected under federal tax intercept. 
214.4      (b) An individual receiving public assistance in the form 
214.5   of medical assistance, including MinnesotaCare, is considered to 
214.6   have assigned to the state at the time of application all rights 
214.7   to medical support from any other person the individual may have 
214.8   in the individual's own behalf or in the behalf of any other 
214.9   family member for whom medical assistance is provided. 
214.10     An assignment made after September 30, 1997, is effective 
214.11  as to any medical support accruing after the date of medical 
214.12  assistance or MinnesotaCare eligibility. 
214.13     (c) An individual receiving public assistance in the form 
214.14  of child care assistance under title IV-A of the Social Security 
214.15  Act is considered to have assigned to the state at the time of 
214.16  application all rights to child care support from any other 
214.17  person the individual may have in the individual's own behalf or 
214.18  in the behalf of any other family member for whom child care 
214.19  assistance is provided. 
214.20     An assignment made according to this paragraph is effective 
214.21  as to: 
214.22     (1) any current child care support and any child care 
214.23  support arrears assigned and accruing after the effective date 
214.24  of this section that are collected before October 1, 2000; and 
214.25     (2) any accrued child care support arrears collected under 
214.26  federal tax intercept. 
214.27     Subd. 3.  [EXISTING ASSIGNMENTS.] All assignments based on 
214.28  the receipt of public assistance in existence prior to the 
214.29  effective date of this section are permanently assigned to the 
214.30  state. 
214.31     Subd. 4.  [EFFECT OF ASSIGNMENT.] All assignments in this 
214.32  section take effect upon a determination that the applicant is 
214.33  eligible for public assistance.  The amount of support assigned 
214.34  under this subdivision cannot exceed the total amount of public 
214.35  assistance issued. 
214.36     Subd. 5.  [COOPERATION WITH CHILD SUPPORT 
215.1   ENFORCEMENT.] After notification from a public assistance agency 
215.2   that an individual has applied for or is receiving any form of 
215.3   public assistance, the child support agency shall determine 
215.4   whether the party is cooperating with the agency in establishing 
215.5   paternity, child support, modification of an existing child 
215.6   support order, or enforcement of an existing child support 
215.7   order.  The public assistance agency shall notify each applicant 
215.8   or recipient in writing of the right to claim a good cause 
215.9   exemption from cooperating with the requirements in this 
215.10  section.  A copy of the notice shall be furnished to the 
215.11  applicant or recipient, and the applicant or recipient and a 
215.12  representative from the public authority shall acknowledge 
215.13  receipt of the notice by signing and dating a copy of the notice.
215.14     The individual shall cooperate with the child support 
215.15  agency by: 
215.16     (1) providing all known information regarding the alleged 
215.17  father or obligor including name, address, social security 
215.18  number, telephone number, place of employment or school, and the 
215.19  names and addresses of any relatives; 
215.20     (2) appearing at interviews, hearings, and legal 
215.21  proceedings; 
215.22     (3) submitting to genetic tests including genetic testing 
215.23  of the child, under a judicial or administrative order; and 
215.24     (4) providing additional information known by the 
215.25  individual as necessary for cooperating in good faith with the 
215.26  child support agency. 
215.27     The caregiver of a minor child shall cooperate with the 
215.28  efforts of the public authority to collect support according to 
215.29  this subdivision.  A caregiver shall forward to the public 
215.30  authority all support the caregiver receives during the period 
215.31  the assignment of support required under section 256.741, 
215.32  subdivision 1, is in effect.  Support received by a caregiver, 
215.33  and not forwarded to the public authority, must be repaid to the 
215.34  child support enforcement unit for any month following the date 
215.35  on which initial eligibility is determined, except as provided 
215.36  under subdivision 8, paragraph (b), clause (4). 
216.1      Subd. 6.  [DETERMINATION.] If the individual cannot provide 
216.2   the information required in subdivision 5, before making a 
216.3   determination that the individual is cooperating, the child 
216.4   support agency shall make a finding that the individual could 
216.5   not reasonably be expected to provide the information.  In 
216.6   making this finding, the child support agency shall consider: 
216.7      (1) the age of the child for whom support is being sought; 
216.8      (2) the circumstances surrounding the conception of the 
216.9   child; 
216.10     (3) the age and mental capacity of the parent or caregiver 
216.11  of the child for whom support is being sought; 
216.12     (4) the time period that has expired since the parent or 
216.13  caregiver of the child for whom support is sought last had 
216.14  contact with the alleged father or obligor, or such person's 
216.15  relatives; and 
216.16     (5) statements from the applicant or recipient or other 
216.17  individuals that show evidence of an inability to provide 
216.18  correct information about the alleged father or obligor because 
216.19  of deception by the alleged father or obligor. 
216.20     Subd. 7.  [NONCOOPERATION.] Unless good cause is found to 
216.21  exist under subdivision 10, upon a determination of 
216.22  noncooperation by the child support agency, the agency shall 
216.23  promptly notify the individual and each public assistance agency 
216.24  providing public assistance to the individual that the 
216.25  individual is not cooperating with the child support agency.  
216.26  Upon notice of noncooperation, the individual shall be 
216.27  sanctioned in the amount determined according to the public 
216.28  assistance agency responsible for enforcing the sanction.  
216.29     Subd. 8.  [REFUSAL TO COOPERATE WITH SUPPORT 
216.30  REQUIREMENTS.] (a) Failure by a caregiver to satisfy any of the 
216.31  requirements of subdivision 5 constitutes refusal to cooperate, 
216.32  and the sanctions under subdivision 8a apply.  The IV-D agency 
216.33  must determine whether a caregiver has refused to cooperate 
216.34  according to the applicable provisions of this section. 
216.35     (b) Determination by the IV-D agency that a caregiver has 
216.36  refused to cooperate shall give rise to sanctions under 
217.1   subdivision 8a.  
217.2      Subd. 8a.  [SANCTIONS FOR REFUSAL TO COOPERATE WITH SUPPORT 
217.3   REQUIREMENTS.] (a) The grant of an MFIP-S caregiver who refuses 
217.4   to cooperate, as determined by the child support enforcement 
217.5   agency, with support requirements under this section and section 
217.6   256J.30, if enacted, must be reduced by 25 percent, and the 
217.7   assistance unit's rent and utilities, if any, shall be vendor 
217.8   paid up to the amount of the reduced MFIP-S grant.  The residual 
217.9   amount of the grant, if any, must be paid to the caregiver.  A 
217.10  sanction under this subdivision becomes effective ten days after 
217.11  the required notice is given.  The sanction must be in effect 
217.12  for a minimum of one month, and shall be removed only when the 
217.13  caregiver cooperates with the support requirements.  For 
217.14  purposes of this subdivision, each month that a participant 
217.15  fails to comply with a requirement of section 256J.30, if 
217.16  enacted, shall be considered a separate occurrence of 
217.17  noncompliance.  A participant who has had one or more sanctions 
217.18  imposed must remain in compliance with the provisions of this 
217.19  chapter for 12 months in order for a subsequent sanction to be 
217.20  considered a first occurrence.  A sanction under this 
217.21  subdivision is not subject to the notice requirements of section 
217.22  256J.57, subdivision 2, if enacted. 
217.23     (b) For a participant who is subject concurrently to 
217.24  sanctions under paragraph (a) and sanctions under section 
217.25  256J.46, subdivision 2, if enacted, for failure to comply with 
217.26  other program requirements, the sanctions shall be prescribed in 
217.27  the order and manner in this paragraph.  The participant's grant 
217.28  must be reduced by 25 percent, and the assistance unit's rent 
217.29  and utilities shall be vendor paid up to the amount of the 
217.30  reduced grant, as provided in subdivision 1.  The residual 
217.31  amount of the grant after vendor payment, if any, must be 
217.32  reduced by ten percent of the applicable transitional standard 
217.33  before it is paid to the participant.  If the assistance unit is 
217.34  a two-parent family and both parents are in noncompliance under 
217.35  this subdivision, the residual amount of the grant, if any, must 
217.36  be reduced by an additional five percent of the applicable 
218.1   transitional standard before it is paid to the participant.  The 
218.2   sanction must be in effect for a minimum of one month, and shall 
218.3   be removed only when the participant is in compliance.  
218.4      Subd. 9.  [GOOD CAUSE EXEMPTION FROM COOPERATING WITH 
218.5   SUPPORT REQUIREMENTS.] The IV-A or IV-D agency must notify the 
218.6   caregiver that the caregiver may claim a good cause exemption 
218.7   from cooperating with the requirements in subdivision 5.  Good 
218.8   cause may be claimed and exemptions determined according to 
218.9   subdivisions 10 to 13. 
218.10     Subd. 10.  [GOOD CAUSE EXEMPTION.] (a) Cooperation with the 
218.11  child support agency under subdivision 5 is not necessary if the 
218.12  individual asserts, and both the child support agency and the 
218.13  public assistance agency find, good cause exists under this 
218.14  subdivision for failing to cooperate.  An individual may request 
218.15  a good cause exemption by filing a written claim with the public 
218.16  assistance agency on a form provided by the commissioner of 
218.17  human services.  Upon notification of a claim for good cause 
218.18  exemption, the child support agency shall cease all child 
218.19  support enforcement efforts until the claim for good cause 
218.20  exemption is reviewed and the validity of the claim is 
218.21  determined.  Designated representatives from public assistance 
218.22  agencies and at least one representative from the child support 
218.23  enforcement agency shall review each claim for a good cause 
218.24  exemption and determine its validity. 
218.25     (b) Good cause exists when an individual documents that 
218.26  pursuit of child support enforcement services could reasonably 
218.27  result in: 
218.28     (1) physical or emotional harm to the child for whom 
218.29  support is sought; 
218.30     (2) physical harm to the parent or caregiver with whom the 
218.31  child is living that would reduce the ability to adequately care 
218.32  for the child; or 
218.33     (3) emotional harm to the parent or caregiver with whom the 
218.34  child is living, of such nature or degree that it would reduce 
218.35  the person's ability to adequately care for the child. 
218.36     The physical and emotional harm under this paragraph must 
219.1   be of a serious nature in order to justify a finding of good 
219.2   cause exemption.  A finding of good cause exemption based on 
219.3   emotional harm may only be based upon a demonstration of 
219.4   emotional impairment that substantially affects the individual's 
219.5   ability to function. 
219.6      (c) Good cause also exists when the designated 
219.7   representatives in this subdivision believe that pursuing child 
219.8   support enforcement would be detrimental to the child for whom 
219.9   support is sought and the individual applicant or recipient 
219.10  documents any of the following: 
219.11     (1) the child for whom child support enforcement is sought 
219.12  was conceived as a result of incest or rape; 
219.13     (2) legal proceedings for the adoption of the child are 
219.14  pending before a court of competent jurisdiction; or 
219.15     (3) the parent or caregiver of the child is currently being 
219.16  assisted by a public or licensed private social service agency 
219.17  to resolve the issues of whether to keep the child or place the 
219.18  child for adoption. 
219.19     The parent or caregiver's right to claim a good cause 
219.20  exemption based solely on this paragraph expires if the 
219.21  assistance lasts more than 90 days. 
219.22     (d) The public authority shall consider the best interests 
219.23  of the child in determining good cause. 
219.24     Subd. 11.  [PROOF OF GOOD CAUSE.] (a) An individual seeking 
219.25  a good cause exemption has 20 days from the date the good cause 
219.26  claim was provided to the public assistance agency to supply 
219.27  evidence supporting the claim.  The public assistance agency may 
219.28  extend the time period in this section if it believes the 
219.29  individual is cooperating and needs additional time to submit 
219.30  the evidence required by this section.  Failure to provide such 
219.31  evidence shall result in the child support agency resuming child 
219.32  support enforcement efforts. 
219.33     (b) Evidence supporting a good cause claim includes, but is 
219.34  not limited to: 
219.35     (1) a birth certificate, or medical or law enforcement 
219.36  records indicating that the child was conceived as the result of 
220.1   incest or rape; 
220.2      (2) court documents or other records indicating that legal 
220.3   proceedings for adoption are pending before a court of competent 
220.4   jurisdiction; 
220.5      (3) court, medical, criminal, child protective services, 
220.6   social services, domestic violence advocate services, 
220.7   psychological, or law enforcement records indicating that the 
220.8   alleged father or obligor might inflict physical or emotional 
220.9   harm on the child, parent, or caregiver; 
220.10     (4) medical records or written statements from a licensed 
220.11  medical professional indicating the emotional health history or 
220.12  status of the custodial parent, child, or caregiver, or 
220.13  indicating a diagnosis or prognosis concerning their emotional 
220.14  health; 
220.15     (5) a written statement from a public or licensed private 
220.16  social services agency that the individual is deciding whether 
220.17  to keep the child or place the child for adoption; or 
220.18     (6) sworn statements from individuals other than the 
220.19  applicant or recipient that provide evidence supporting the good 
220.20  cause claim. 
220.21     (c) The child support agency and the public assistance 
220.22  agency shall assist an individual in obtaining the evidence in 
220.23  this section upon request of the individual. 
220.24     Subd. 12.  [DECISION.] A good cause exemption shall be 
220.25  granted if the individual's claim and the investigation of the 
220.26  supporting evidence satisfy the investigating agencies that the 
220.27  individual has good cause for refusing to cooperate. 
220.28     Subd. 13.  [DURATION.] A good cause exemption shall not 
220.29  continue for more than one year without redetermination of 
220.30  cooperation and good cause pursuant to this section.  The child 
220.31  support agency may redetermine cooperation and the designated 
220.32  representatives in subdivision 10 may redetermine the granting 
220.33  of a good cause exemption before the one-year expiration in this 
220.34  subdivision. 
220.35     A good cause exemption must be allowed under subsequent 
220.36  applications and redeterminations without additional evidence 
221.1   when the factors which led to the exemption continue to exist.  
221.2   A good cause exemption must end when the factors that led to the 
221.3   exemption have changed. 
221.4      Sec. 5.  Minnesota Statutes 1996, section 256.87, 
221.5   subdivision 1, is amended to read: 
221.6      Subdivision 1.  [ACTIONS AGAINST PARENTS FOR ASSISTANCE 
221.7   FURNISHED.] A parent of a child is liable for the amount of 
221.8   assistance furnished under sections 256.031 to 256.0361, 256.72 
221.9   to 256.87, or under Title IV-A or IV-E of the Social Security 
221.10  Act or medical assistance under chapter 256, 256B, or 256D Title 
221.11  XIX of the Social Security Act to and for the benefit of the 
221.12  child, including any assistance furnished for the benefit of the 
221.13  caretaker of the child, which the parent has had the ability to 
221.14  pay.  Ability to pay must be determined according to chapter 
221.15  518.  The parent's liability is limited to the two years 
221.16  immediately preceding the commencement of the action, except 
221.17  that where child support has been previously ordered, the state 
221.18  or county agency providing the assistance, as assignee of the 
221.19  obligee, shall be entitled to judgments for child support 
221.20  payments accruing within ten years preceding the date of the 
221.21  commencement of the action up to the full amount of assistance 
221.22  furnished.  The action may be ordered by the state agency or 
221.23  county agency and shall be brought in the name of the county by 
221.24  the county attorney of the county in which the assistance was 
221.25  granted, or by in the name of the state agency against the 
221.26  parent for the recovery of the amount of assistance granted, 
221.27  together with the costs and disbursements of the action. 
221.28     Sec. 6.  Minnesota Statutes 1996, section 256.87, 
221.29  subdivision 1a, is amended to read: 
221.30     Subd. 1a.  [CONTINUING SUPPORT CONTRIBUTIONS.] In addition 
221.31  to granting the county or state agency a money judgment, the 
221.32  court may, upon a motion or order to show cause, order 
221.33  continuing support contributions by a parent found able to 
221.34  reimburse the county or state agency.  The order shall be 
221.35  effective for the period of time during which the recipient 
221.36  receives public assistance from any county or state agency and 
222.1   thereafter.  The order shall require support according to 
222.2   chapter 518.  An order for continuing contributions is 
222.3   reinstated without further hearing upon notice to the parent by 
222.4   any county or state agency that assistance is again being 
222.5   provided for the child of the parent under sections 256.031 to 
222.6   256.0361, 256.72 to 256.87, or under Title IV-A or IV-E of the 
222.7   Social Security Act or medical assistance under chapter 256, 
222.8   256B, or 256D Title XIX of the Social Security Act.  The notice 
222.9   shall be in writing and shall indicate that the parent may 
222.10  request a hearing for modification of the amount of support or 
222.11  maintenance. 
222.12     Sec. 7.  Minnesota Statutes 1996, section 256.87, 
222.13  subdivision 3, is amended to read: 
222.14     Subd. 3.  [CONTINUING CONTRIBUTIONS TO FORMER RECIPIENT.] 
222.15  The order for continuing support contributions shall remain in 
222.16  effect following the period after public assistance granted 
222.17  under sections 256.72 to 256.87 Title IV-A or IV-E of the Social 
222.18  Security Act is terminated unless the former recipient files an 
222.19  affidavit with the court requesting termination of the order.  
222.20     Sec. 8.  Minnesota Statutes 1996, section 256.87, 
222.21  subdivision 5, is amended to read: 
222.22     Subd. 5.  [CHILD NOT RECEIVING ASSISTANCE.] A person or 
222.23  entity having physical custody of a dependent child not 
222.24  receiving public assistance under sections 256.031 to 256.0361, 
222.25  or 256.72 to 256.87 as defined in section 256.741 has a cause of 
222.26  action for child support against the child's absent noncustodial 
222.27  parents.  Upon a motion served on the absent noncustodial 
222.28  parent, the court shall order child support payments, including 
222.29  medical support and child care support, from the 
222.30  absent noncustodial parent under chapter 518.  The absent A 
222.31  noncustodial parent's liability may include up to the two years 
222.32  immediately preceding the commencement of the action.  This 
222.33  subdivision applies only if the person or entity has physical 
222.34  custody with the consent of a custodial parent or approval of 
222.35  the court.  
222.36     Sec. 9.  Minnesota Statutes 1996, section 256.87, is 
223.1   amended by adding a subdivision to read: 
223.2      Subd. 8.  [DISCLOSURE PROHIBITED.] Notwithstanding 
223.3   statutory or other authorization for the public authority to 
223.4   release private data on the location of a party to the action, 
223.5   information on the location of one party may not be released to 
223.6   the other party by the public authority if: 
223.7      (1) the public authority has knowledge that a protective 
223.8   order with respect to the other party has been entered; or 
223.9      (2) the public authority has reason to believe that the 
223.10  release of the information may result in physical or emotional 
223.11  harm to the other party. 
223.12     Sec. 10.  Minnesota Statutes 1996, section 256.978, 
223.13  subdivision 1, is amended to read: 
223.14     Subdivision 1.  [REQUEST FOR INFORMATION.] The commissioner 
223.15  of human services public authority responsible for child support 
223.16  in this state or any other state, in order to locate a person to 
223.17  establish paternity, and child support or to modify or enforce 
223.18  child support, or to enforce a child support obligation in 
223.19  arrears, may request information reasonably necessary to the 
223.20  inquiry from the records of all departments, boards, bureaus, or 
223.21  other agencies of this state, which shall, notwithstanding the 
223.22  provisions of section 268.12, subdivision 12, or any other law 
223.23  to the contrary, provide the information necessary for this 
223.24  purpose.  Employers, utility companies, insurance companies, 
223.25  financial institutions, and labor associations doing business in 
223.26  this state shall provide information as provided under 
223.27  subdivision 2 upon written or electronic request by an agency 
223.28  responsible for child support enforcement regarding individuals 
223.29  owing or allegedly owing a duty to support within 30 days of the 
223.30  receipt service of the written request made by the public 
223.31  authority.  Information requested and used or transmitted by the 
223.32  commissioner pursuant according to the authority conferred by 
223.33  this section may be made available only to public officials and 
223.34  agencies of this state and its political subdivisions and other 
223.35  states of the union and their political subdivisions who are 
223.36  seeking to enforce the support liability of parents or to locate 
224.1   parents.  The commissioner may not release the information to an 
224.2   agency or political subdivision of another state unless the 
224.3   agency or political subdivision is directed to maintain the data 
224.4   consistent with its classification in this state.  Information 
224.5   obtained under this section may not be released except to the 
224.6   extent necessary for the administration of the child support 
224.7   enforcement program or when otherwise authorized by law. to 
224.8   other agencies, statewide systems, and political subdivisions of 
224.9   this state, and agencies of other states, interstate information 
224.10  networks, federal agencies, and other entities as required by 
224.11  federal regulation or law for the administration of the child 
224.12  support enforcement program.  
224.13     For purposes of this section, "state" includes the District 
224.14  of Columbia, Puerto Rico, the United States Virgin Islands, and 
224.15  any territory or insular possession subject to the jurisdiction 
224.16  of the United States. 
224.17     Sec. 11.  Minnesota Statutes 1996, section 256.978, 
224.18  subdivision 2, is amended to read: 
224.19     Subd. 2.  [ACCESS TO INFORMATION.] (a) A written request 
224.20  for information by the public authority responsible for child 
224.21  support of this state or any other state may be made to: 
224.22     (1) employers when there is reasonable cause to believe 
224.23  that the subject of the inquiry is or was an employee or 
224.24  independent contractor of the employer.  Information to be 
224.25  released by employers is limited to place of residence, 
224.26  employment status, wage or payment information, benefit 
224.27  information, and social security number; 
224.28     (2) utility companies when there is reasonable cause to 
224.29  believe that the subject of the inquiry is or was a retail 
224.30  customer of the utility company.  Customer information to be 
224.31  released by utility companies is limited to place of residence, 
224.32  home telephone, work telephone, source of income, employer and 
224.33  place of employment, and social security number; 
224.34     (3) insurance companies when there is an arrearage of child 
224.35  support and there is reasonable cause to believe that the 
224.36  subject of the inquiry is or was receiving funds either in the 
225.1   form of a lump sum or periodic payments.  Information to be 
225.2   released by insurance companies is limited to place of 
225.3   residence, home telephone, work telephone, employer, social 
225.4   security number, and amounts and type of payments made to the 
225.5   subject of the inquiry; 
225.6      (4) labor organizations when there is reasonable cause to 
225.7   believe that the subject of the inquiry is or was a member of 
225.8   the labor association.  Information to be released by labor 
225.9   associations is limited to place of residence, home telephone, 
225.10  work telephone, social security number, and current and past 
225.11  employment information; and 
225.12     (5) financial institutions when there is an arrearage of 
225.13  child support and there is reasonable cause to believe that the 
225.14  subject of the inquiry has or has had accounts, stocks, loans, 
225.15  certificates of deposits, treasury bills, life insurance 
225.16  policies, or other forms of financial dealings with the 
225.17  institution.  Information to be released by the financial 
225.18  institution is limited to place of residence, home telephone, 
225.19  work telephone, identifying information on the type of financial 
225.20  relationships, social security number, current value of 
225.21  financial relationships, and current indebtedness of the subject 
225.22  with the financial institution. 
225.23     (b) For purposes of this subdivision, utility companies 
225.24  include telephone companies, radio common carriers, and 
225.25  telecommunications carriers as defined in section 237.01, and 
225.26  companies that provide electrical, telephone, natural gas, 
225.27  propane gas, oil, coal, or cable television services to retail 
225.28  customers.  The term financial institution includes banks, 
225.29  savings and loans, credit unions, brokerage firms, mortgage 
225.30  companies, and insurance companies., benefit associations, safe 
225.31  deposit companies, money market mutual funds, or similar 
225.32  entities authorized to do business in the state. 
225.33     Sec. 12.  Minnesota Statutes 1996, section 256.9792, 
225.34  subdivision 1, is amended to read: 
225.35     Subdivision 1.  [ARREARAGE COLLECTIONS.] Arrearage 
225.36  collection projects are created to increase the revenue to the 
226.1   state and counties, reduce AFDC public assistance expenditures 
226.2   for former public assistance cases, and increase payments of 
226.3   arrearages to persons who are not receiving public assistance by 
226.4   submitting cases for arrearage collection to collection 
226.5   entities, including but not limited to, the department of 
226.6   revenue and private collection agencies. 
226.7      Sec. 13.  Minnesota Statutes 1996, section 256.9792, 
226.8   subdivision 2, is amended to read: 
226.9      Subd. 2.  [DEFINITIONS.] (a) The definitions in this 
226.10  subdivision apply to this section: 
226.11     (b) "Public assistance arrearage case" means a case where 
226.12  current support may be due, no payment, with the exception of 
226.13  tax offset, has been made within the last 90 days, and the 
226.14  arrearages are assigned to the public agency pursuant according 
226.15  to section 256.74, subdivision 5 256.741. 
226.16     (c) "Public authority" means the public authority 
226.17  responsible for child support enforcement. 
226.18     (d) "Nonpublic assistance arrearage case" means a support 
226.19  case where arrearages have accrued that have not been assigned 
226.20  pursuant according to section 256.74, subdivision 5 256.741. 
226.21     Sec. 14.  Minnesota Statutes 1996, section 256.998, 
226.22  subdivision 1, is amended to read: 
226.23     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
226.24  subdivision apply to this section. 
226.25     (b) "Date of hiring" means the earlier of:  (1) the first 
226.26  day for which an employee is owed compensation by an employer; 
226.27  or (2) the first day that an employee reports to work or 
226.28  performs labor or services for an employer. 
226.29     (c) "Earnings" means payment owed by an employer for labor 
226.30  or services rendered by an employee. 
226.31     (d) "Employee" means a person who resides or works in 
226.32  Minnesota and, performs services for compensation, in whatever 
226.33  form, for an employer and satisfies the criteria of an employee 
226.34  under chapter 24 of the Internal Revenue Code.  Employee does 
226.35  not include:  
226.36     (1) persons hired for domestic service in the private home 
227.1   of the employer, as defined in the Federal Tax Code.; or 
227.2      (2) an employee of the federal or state agency performing 
227.3   intelligence or counterintelligence functions, if the head of 
227.4   such agency has determined that reporting according to this law 
227.5   would endanger the safety of the employee or compromise an 
227.6   ongoing investigation or intelligence mission. 
227.7      (e) "Employer" means a person or entity located or doing 
227.8   business in this state that employs one or more employees for 
227.9   payment, and satisfies the criteria of an employer under chapter 
227.10  24 of the Internal Revenue Code.  Employer includes a labor 
227.11  organization as defined in paragraph (g).  Employer also 
227.12  includes the state, political or other governmental subdivisions 
227.13  of the state, and the federal government. 
227.14     (f) "Hiring" means engaging a person to perform services 
227.15  for compensation and includes the reemploying or return to work 
227.16  of any previous employee who was laid off, furloughed, 
227.17  separated, granted a leave without pay, or terminated from 
227.18  employment. 
227.19     (g) "Labor organization" means entities located or doing 
227.20  business in this state that meet the criteria of labor 
227.21  organization under section 2(5) of the National Labor Relations 
227.22  Act.  This includes any entity, that may also be known as a 
227.23  hiring hall, used to carry out requirements described in chapter 
227.24  7 of the National Labor Relations Act. 
227.25     (h) "Payor" means a person or entity located or doing 
227.26  business in Minnesota who pays money to an independent 
227.27  contractor according to an agreement for the performance of 
227.28  services. 
227.29     Sec. 15.  Minnesota Statutes 1996, section 256.998, 
227.30  subdivision 6, is amended to read: 
227.31     Subd. 6.  [SANCTIONS.] If an employer fails to report under 
227.32  this section, the commissioner of human services, by certified 
227.33  mail, shall send the employer a written notice of noncompliance 
227.34  requesting that the employer comply with the reporting 
227.35  requirements of this section.  The notice of noncompliance must 
227.36  explain the reporting procedure under this section and advise 
228.1   the employer of the penalty for noncompliance.  An employer who 
228.2   has received a notice of noncompliance and later incurs a second 
228.3   violation is subject to a civil penalty of $50 $25 for each 
228.4   intentionally unreported employee.  An employer who has received 
228.5   a notice of noncompliance and later incurs a third or subsequent 
228.6   violation is subject to a civil penalty of $500 for each 
228.7   intentionally unreported employee., if noncompliance is the 
228.8   result of a conspiracy between an employer and an employee not 
228.9   to supply the required report or to supply a false or incomplete 
228.10  report.  These penalties may be imposed and collected by the 
228.11  commissioner of human services.  An employer who has been served 
228.12  with a notice of noncompliance and incurs a second or subsequent 
228.13  notice of noncompliance, has the right to a contested case 
228.14  hearing according to chapter 14.  An employer has 20 days from 
228.15  the date of service of the notice of noncompliance, to file a 
228.16  request for a contested case hearing with the commissioner.  The 
228.17  order of the administrative law judge constitutes the final 
228.18  decision in the case. 
228.19     Sec. 16.  Minnesota Statutes 1996, section 256.998, 
228.20  subdivision 7, is amended to read: 
228.21     Subd. 7.  [ACCESS TO DATA.] The commissioner of human 
228.22  services shall retain the information reported to the work 
228.23  reporting system for a period of six months.  Data in the work 
228.24  reporting system may be disclosed to the public authority 
228.25  responsible for child support enforcement, federal agencies, and 
228.26  state and local agencies of other states for the purposes of 
228.27  enforcing state and federal laws governing child support., and 
228.28  agencies responsible for the administration of programs under 
228.29  Title IV-A of the Social Security Act, the department of 
228.30  economic security, and the department of labor and industry. 
228.31     Sec. 17.  Minnesota Statutes 1996, section 256.998, is 
228.32  amended by adding a subdivision to read: 
228.33     Subd. 10.  [USE OF WORK REPORTING SYSTEM INFORMATION IN 
228.34  DETERMINING ELIGIBILITY FOR PUBLIC ASSISTANCE PROGRAMS.] The 
228.35  commissioner of human services is authorized to use information 
228.36  from the work reporting system to determine eligibility for 
229.1   applicants and recipients of public assistance programs 
229.2   administered by the department of human services.  Data 
229.3   including names, dates of birth, and social security numbers of 
229.4   people applying for or receiving public assistance benefits will 
229.5   be compared to the work reporting system information to 
229.6   determine if applicants or recipients of public assistance are 
229.7   employed.  County agencies will be notified of discrepancies in 
229.8   information obtained from the work reporting system. 
229.9      Sec. 18.  Minnesota Statutes 1996, section 256.998, is 
229.10  amended by adding a subdivision to read: 
229.11     Subd. 11.  [ACTION ON INFORMATION.] Upon receipt of the 
229.12  discrepant information, county agencies will notify clients of 
229.13  the information and request verification of employment status 
229.14  and earnings.  County agencies must attempt to resolve the 
229.15  discrepancy within 45 days of receipt of the information. 
229.16     Sec. 19.  Minnesota Statutes 1996, section 256.998, is 
229.17  amended by adding a subdivision to read: 
229.18     Subd. 12.  [CLIENT NOTIFICATION.] Persons applying for 
229.19  public assistance programs administered by the department of 
229.20  human services will be notified at the time of application that 
229.21  data including their name, date of birth, and social security 
229.22  number will be shared with the work reporting system to 
229.23  determine possible employment.  All current public assistance 
229.24  recipients will be notified of this provision prior to its 
229.25  implementation. 
229.26     Sec. 20.  Minnesota Statutes 1996, section 256F.04, 
229.27  subdivision 1, is amended to read: 
229.28     Subdivision 1.  [FAMILY PRESERVATION FUND.] The 
229.29  commissioner shall establish a family preservation fund to 
229.30  assist counties in providing placement prevention and family 
229.31  reunification services.  This fund shall include a basic grant 
229.32  for family preservation services, a placement earnings grant 
229.33  under section 256.8711, subdivision 6b, paragraph (a), and a 
229.34  development grant under section 256.8711, subdivision 6a, to 
229.35  assist counties in developing and expanding their family 
229.36  preservation core services as defined in section 256F.03, 
230.1   subdivision 10.  Beginning with calendar year 1998, after each 
230.2   annual or quarterly calculation, these three component grants 
230.3   shall be added together and treated as a single family 
230.4   preservation grant. 
230.5      Sec. 21.  Minnesota Statutes 1996, section 256F.04, 
230.6   subdivision 2, is amended to read: 
230.7      Subd. 2.  [FORMS AND INSTRUCTIONS.] The commissioner shall 
230.8   provide necessary forms and instructions to the counties for 
230.9   their community social services plan, as required in section 
230.10  256E.09, that incorporate the information necessary to apply for 
230.11  a family preservation fund grant, and to exercise county options 
230.12  under section 256F.05, subdivisions 7, paragraph (a), or 
230.13  subdivision 8, paragraph (c).  
230.14     Sec. 22.  Minnesota Statutes 1996, section 256F.05, 
230.15  subdivision 2, is amended to read: 
230.16     Subd. 2.  [MONEY AVAILABLE FOR THE BASIC GRANT FAMILY 
230.17  PRESERVATION.] Money appropriated for family preservation under 
230.18  sections 256F.04 to 256F.07, together with an amount as 
230.19  determined by the commissioner of title IV-B funds distributed 
230.20  to Minnesota according to the Social Security Act, United States 
230.21  Code, title 42, chapter 7, subchapter IV, part B, section 621, 
230.22  must be distributed to counties on a calendar year basis 
230.23  according to the formula in subdivision 3. 
230.24     Sec. 23.  Minnesota Statutes 1996, section 256F.05, 
230.25  subdivision 3, is amended to read: 
230.26     Subd. 3.  [BASIC GRANT FORMULA.] (a) The amount of money 
230.27  allocated to counties under subdivision 2 shall first be 
230.28  allocated in amounts equal to each county's guaranteed floor 
230.29  according to paragraph (b), and second, any remaining available 
230.30  funds allocated as follows: 
230.31     (1) 90 50 percent of the funds shall be allocated based on 
230.32  the population of the county under age 19 years as compared to 
230.33  the state as a whole as determined by the most recent data from 
230.34  the state demographer's office; and 
230.35     (2) ten 20 percent of funds shall be allocated based on the 
230.36  county's percentage share of the unduplicated number of families 
231.1   who received family preservation services under section 256F.03, 
231.2   subdivision 5, paragraphs (a), (b), (c), and (e), in the most 
231.3   recent calendar year available as determined by the 
231.4   commissioner; 
231.5      (3) ten percent of the funds shall be allocated based on 
231.6   the county's percentage share of the unduplicated number of 
231.7   children in substitute care in the most recent calendar year 
231.8   available as determined by the commissioner; 
231.9      (4) ten percent of the funds shall be allocated based on 
231.10  the county's percentage share of the number of determined 
231.11  maltreatment reports in the most recent calendar year available 
231.12  as determined by the commissioner; 
231.13     (5) five percent of the funds shall be allocated based on 
231.14  the county's percentage share of the number of American Indian 
231.15  children under age 18 residing in the county in the most recent 
231.16  calendar year as determined by the commissioner; and 
231.17     (6) five percent of the funds shall be allocated based on 
231.18  the county's percentage share of the number of minority children 
231.19  of color receiving children's case management services as 
231.20  defined by the commissioner based on the most recent data as 
231.21  determined by the commissioner. 
231.22     (b) Each county's basic grant guaranteed floor shall be 
231.23  calculated as follows: 
231.24     (1) 90 percent of the county's allocation received in the 
231.25  preceding calendar year.  For calendar year 1996 only, the 
231.26  allocation received in the preceding calendar year shall be 
231.27  determined by the commissioner based on the funding previously 
231.28  distributed as separate grants under sections 256F.04 to 256F.07 
231.29  or $25,000, whichever is greater; and 
231.30     (2) when the amounts of funds available for allocation is 
231.31  less than the amount available in the previous year, each 
231.32  county's previous year allocation shall be reduced in proportion 
231.33  to the reduction in the statewide funding, for the purpose of 
231.34  establishing the guaranteed floor. 
231.35     (c) The commissioner shall regularly review the use of 
231.36  family preservation fund allocations by county.  The 
232.1   commissioner may reallocate unexpended or unencumbered money at 
232.2   any time among those counties that have expended or are 
232.3   projected to expend their full allocation. 
232.4      (d) For the period of July 1, 1997, to December 31, 1998, 
232.5   only, each county shall receive an 18-month allocation.  For the 
232.6   purposes of determining the guaranteed floor for this 18-month 
232.7   allocation, the allocation received in the preceding calendar 
232.8   year shall be determined by the commissioner based on the 
232.9   funding previously distributed separately under sections 
232.10  256.8711 and 256F.04. 
232.11     Sec. 24.  Minnesota Statutes 1996, section 256F.05, 
232.12  subdivision 4, is amended to read: 
232.13     Subd. 4.  [PAYMENTS.] The commissioner shall make grant 
232.14  payments to each county whose biennial community social services 
232.15  plan has been approved under section 256F.04, subdivision 2.  
232.16  The basic grant under subdivisions 2 and 3 and the development 
232.17  grant under section 256.8711, subdivision 6a, shall be paid to 
232.18  counties in four installments per year.  The commissioner may 
232.19  certify the payments for the first three months of a calendar 
232.20  year.  Subsequent payments shall be based on reported 
232.21  expenditures and may be adjusted for anticipated spending 
232.22  patterns.  The placement earnings grant under section 256.8711, 
232.23  subdivision 6b, paragraph (a), shall be based on earnings and 
232.24  coordinated with the other payments.  In calendar years 1996 and 
232.25  1997, the placement earnings grant and the development grant 
232.26  shall be distributed separately from the basic grant, except as 
232.27  provided in subdivision 7, paragraph (a).  Beginning with 
232.28  calendar year 1998, after each annual or quarterly calculation, 
232.29  these three component grants shall be added together into a 
232.30  single family preservation fund grant and treated as a single 
232.31  grant. 
232.32     Sec. 25.  Minnesota Statutes 1996, section 256F.05, 
232.33  subdivision 8, is amended to read: 
232.34     Subd. 8.  [USES OF FAMILY PRESERVATION FUND GRANTS.] For 
232.35  both basic grants and single family preservation fund grants:  
232.36  (a) A county which has not demonstrated that year that its 
233.1   family preservation core services are developed as provided in 
233.2   subdivision 1a, must use its family preservation fund grant 
233.3   exclusively for family preservation services defined in section 
233.4   256F.03, subdivision 5, paragraphs (a), (b), (c), and (e). 
233.5      (b) A county which has demonstrated that year that its 
233.6   family preservation core services are developed becomes eligible 
233.7   either to continue using its family preservation fund grant as 
233.8   provided in paragraph (a), or to exercise the expanded service 
233.9   option under paragraph (c). 
233.10     (c) The expanded service option permits an eligible county 
233.11  to use its family preservation fund grant for child welfare 
233.12  preventative preventive services as defined in section 256F.10, 
233.13  subdivision 7, paragraph (d).  For purposes of this section, 
233.14  child welfare preventive services are those services directed 
233.15  toward a specific child or family that further the goals of 
233.16  section 256F.01 and include assessments, family preservation 
233.17  services, service coordination, community-based treatment, 
233.18  crisis nursery services when the parents retain custody and 
233.19  there is no voluntary placement agreement with a child-placing 
233.20  agency, respite care except when it is provided under a medical 
233.21  assistance waiver, home-based services, and other related 
233.22  services.  For purposes of this section, child welfare 
233.23  preventive services shall not include shelter care or other 
233.24  placement services under the authority of the court or public 
233.25  agency to address an emergency.  To exercise this option, an 
233.26  eligible county must notify the commissioner in writing of its 
233.27  intention to do so no later than 30 days into the quarter during 
233.28  which it intends to begin or in its county plan, as provided in 
233.29  section 256F.04, subdivision 2.  Effective with the first day of 
233.30  that quarter, the county must maintain its base level of 
233.31  expenditures for child welfare preventative preventive services 
233.32  and use the family preservation fund to expand them.  The base 
233.33  level of expenditures for a county shall be that established 
233.34  under section 256F.10, subdivision 7.  For counties which have 
233.35  no such base established, a comparable base shall be established 
233.36  with the base year being the calendar year ending at least two 
234.1   calendar quarters before the first calendar quarter in which the 
234.2   county exercises its expanded service option.  The commissioner 
234.3   shall, at the request of the counties, reduce, suspend, or 
234.4   eliminate either or both of a county's obligations to continue 
234.5   the base level of expenditures and to expand child welfare 
234.6   preventative preventive services based on conditions described 
234.7   in section 256F.10, subdivision 7, paragraph (b) or (c) under 
234.8   extraordinary circumstances.  
234.9      (d) Each county's placement earnings and development grant 
234.10  shall be determined under section 256.8711, but after each 
234.11  annual or quarterly calculation, if added to that county's basic 
234.12  grant, the three component grants shall be treated as a single 
234.13  family preservation fund grant. 
234.14     Sec. 26.  Minnesota Statutes 1996, section 256F.06, 
234.15  subdivision 1, is amended to read: 
234.16     Subdivision 1.  [RESPONSIBILITIES.] A county board may, 
234.17  alone or in combination with other county boards, apply for a 
234.18  family preservation fund grant as provided in section 256F.04, 
234.19  subdivision 2.  Upon approval of the grant, the county board may 
234.20  contract for or directly provide family-based and other eligible 
234.21  services.  A county board may contract with or directly provide 
234.22  eligible services to children and families through a local 
234.23  collaborative. 
234.24     Sec. 27.  Minnesota Statutes 1996, section 256F.06, 
234.25  subdivision 2, is amended to read: 
234.26     Subd. 2.  [DEVELOPING FAMILY PRESERVATION CORE SERVICES.] A 
234.27  county board shall endeavor to develop and expand its family 
234.28  preservation core services.  When a county can demonstrate that 
234.29  its family preservation core services are developed as provided 
234.30  in section 256F.05, subdivision 1a, a county board becomes 
234.31  eligible to exercise the expanded service option under section 
234.32  256F.05, subdivision 8, paragraph (c).  For calendar years 1996 
234.33  and 1997, the county board also becomes eligible to request that 
234.34  its basic, placement earnings, and development grants be added 
234.35  into a single grant under section 256F.05, subdivision 7, 
234.36  paragraph (a). 
235.1      Sec. 28.  Minnesota Statutes 1996, section 257.62, 
235.2   subdivision 1, is amended to read: 
235.3      Subdivision 1.  [BLOOD OR GENETIC TESTS REQUIRED.] (a) The 
235.4   court or public authority may, and upon request of a party 
235.5   shall, require the child, mother, or alleged father to submit to 
235.6   blood or genetic tests.  A mother or alleged father requesting 
235.7   the tests shall file with the court an affidavit either alleging 
235.8   or denying paternity and setting forth facts that establish the 
235.9   reasonable possibility that there was, or was not, the requisite 
235.10  sexual contact between the parties. 
235.11     (b) A copy of the test results must be served on the 
235.12  parties as provided in section 543.20 each party by first class 
235.13  mail to the party's last known address.  Any objection to the 
235.14  results of blood or genetic tests must be made in writing no 
235.15  later than 15 days prior to a hearing at which time those test 
235.16  results may be introduced into evidence 30 days after service of 
235.17  the results.  Test results served upon a party must include 
235.18  notice of this right to object.  
235.19     (c) If the alleged father is dead, the court may, and upon 
235.20  request of a party shall, require the decedent's parents or 
235.21  brothers and sisters or both to submit to blood or genetic 
235.22  tests.  However, in a case involving these relatives of an 
235.23  alleged father, who is deceased, the court may refuse to order 
235.24  blood or genetic tests if the court makes an express finding 
235.25  that submitting to the tests presents a danger to the health of 
235.26  one or more of these relatives that outweighs the child's 
235.27  interest in having the tests performed.  Unless the person gives 
235.28  consent to the use, the results of any blood or genetic tests of 
235.29  the decedent's parents, brothers, or sisters may be used only to 
235.30  establish the right of the child to public assistance including 
235.31  but not limited to social security and veterans' benefits.  The 
235.32  tests shall be performed by a qualified expert appointed by the 
235.33  court. 
235.34     Sec. 29.  Minnesota Statutes 1996, section 257.62, 
235.35  subdivision 2, is amended to read: 
235.36     Subd. 2.  The court, upon reasonable request by a party, 
236.1   shall order that independent tests be performed by other 
236.2   qualified experts.  Unless otherwise agreed by the parties, a 
236.3   party wanting additional testing must first contest the original 
236.4   tests in subdivision 1, paragraph (b), and must pay in advance 
236.5   for the additional testing.  The additional testing shall be 
236.6   performed by another qualified expert. 
236.7      Sec. 30.  Minnesota Statutes 1996, section 257.66, 
236.8   subdivision 3, is amended to read: 
236.9      Subd. 3.  [JUDGMENT; ORDER.] The judgment or order shall 
236.10  contain provisions concerning the duty of support, the custody 
236.11  of the child, the name of the child, the social security number 
236.12  of the mother, father, and child, if known at the time of 
236.13  adjudication, visitation privileges with the child, the 
236.14  furnishing of bond or other security for the payment of the 
236.15  judgment, or any other matter in the best interest of the 
236.16  child.  Custody and visitation and all subsequent motions 
236.17  related to them shall proceed and be determined under section 
236.18  257.541.  The remaining matters and all subsequent motions 
236.19  related to them shall proceed and be determined in accordance 
236.20  with chapter 518.  The judgment or order may direct the 
236.21  appropriate party to pay all or a proportion of the reasonable 
236.22  expenses of the mother's pregnancy and confinement, after 
236.23  consideration of the relevant facts, including the relative 
236.24  financial means of the parents; the earning ability of each 
236.25  parent; and any health insurance policies held by either parent, 
236.26  or by a spouse or parent of the parent, which would provide 
236.27  benefits for the expenses incurred by the mother during her 
236.28  pregnancy and confinement.  Pregnancy and confinement expenses 
236.29  and genetic testing costs, submitted by the public authority, 
236.30  are admissible as evidence without third-party foundation 
236.31  testimony and shall constitute prima facie evidence of the 
236.32  amounts incurred for such services or for the genetic testing.  
236.33  Remedies available for the collection and enforcement of child 
236.34  support apply to confinement costs and are considered additional 
236.35  child support. 
236.36     Sec. 31.  Minnesota Statutes 1996, section 257.66, is 
237.1   amended by adding a subdivision to read: 
237.2      Subd. 6.  [REQUIRED INFORMATION.] Upon entry of judgment or 
237.3   order, each parent who is a party in a paternity proceeding 
237.4   shall: 
237.5      (1) file with the public authority responsible for child 
237.6   support enforcement the party's social security number, 
237.7   residential and mailing address, telephone number, driver's 
237.8   license number, and name, address, and telephone number of any 
237.9   employer if the party is receiving services from the public 
237.10  authority or begins receiving services from the public 
237.11  authority; 
237.12     (2) file the information in clause (1) with the district 
237.13  court; and 
237.14     (3) notify the court and, if applicable, the public 
237.15  authority responsible for child support enforcement of any 
237.16  change in the information required under this section within ten 
237.17  days of the change. 
237.18     Sec. 32.  Minnesota Statutes 1996, section 257.70, is 
237.19  amended to read: 
237.20     257.70 [HEARINGS AND RECORDS; CONFIDENTIALITY.] 
237.21     (a) Notwithstanding any other law concerning public 
237.22  hearings and records, any hearing or trial held under sections 
237.23  257.51 to 257.74 shall be held in closed court without 
237.24  admittance of any person other than those necessary to the 
237.25  action or proceeding.  All papers and records, other than the 
237.26  final judgment, pertaining to the action or proceeding, whether 
237.27  part of the permanent record of the court or of a file in the 
237.28  state department of human services or elsewhere, are subject to 
237.29  inspection only upon consent of the court and all interested 
237.30  persons, or in exceptional cases only upon an order of the court 
237.31  for good cause shown.  
237.32     (b) In all actions under this chapter in which public 
237.33  assistance is assigned under section 256.741 or the public 
237.34  authority provides services to a party or parties to the action, 
237.35  notwithstanding statutory or other authorization for the public 
237.36  authority to release private data on the location of a party to 
238.1   the action, information on the location of one party may not be 
238.2   released by the public authority to the other party if:  
238.3      (1) the public authority has knowledge that a protective 
238.4   order with respect to the other party has been entered; or 
238.5      (2) the public authority has reason to believe that the 
238.6   release of the information may result in physical or emotional 
238.7   harm to the other party. 
238.8      Sec. 33.  Minnesota Statutes 1996, section 257.75, 
238.9   subdivision 2, is amended to read: 
238.10     Subd. 2.  [REVOCATION OF RECOGNITION.] A recognition may be 
238.11  revoked in a writing signed by the mother or father before a 
238.12  notary public and filed with the state registrar of vital 
238.13  statistics within the earlier of 30 days after the recognition 
238.14  is executed. or the date of an administrative or judicial 
238.15  hearing relating to the child in which the revoking party is a 
238.16  party to the related action.  A joinder in a recognition may be 
238.17  revoked in a writing signed by the man who executed the joinder 
238.18  and filed with the state registrar of vital statistics within 30 
238.19  days after the joinder is executed.  Upon receipt of a 
238.20  revocation of the recognition of parentage or joinder in a 
238.21  recognition, the state registrar of vital statistics shall 
238.22  forward a copy of the revocation to the nonrevoking parent, or, 
238.23  in the case of a joinder in a recognition, to the mother and 
238.24  father who executed the recognition.  
238.25     Sec. 34.  Minnesota Statutes 1996, section 257.75, 
238.26  subdivision 3, is amended to read: 
238.27     Subd. 3.  [EFFECT OF RECOGNITION.] Subject to subdivision 2 
238.28  and section 257.55, subdivision 1, paragraph (g) or (h), the 
238.29  recognition has the force and effect of a judgment or order 
238.30  determining the existence of the parent and child relationship 
238.31  under section 257.66.  If the conditions in section 257.55, 
238.32  subdivision 1, paragraph (g) or (h), exist, the recognition 
238.33  creates only a presumption of paternity for purposes of sections 
238.34  257.51 to 257.74.  Once a recognition has been properly executed 
238.35  and filed with the state registrar of vital statistics, if there 
238.36  are no competing presumptions of paternity, a judicial or 
239.1   administrative court shall not allow further action to determine 
239.2   parentage regarding the signator of recognition.  Until an order 
239.3   is entered granting custody to another, the mother has sole 
239.4   custody.  The recognition is: 
239.5      (1) a basis for bringing an action to award custody or 
239.6   visitation rights to either parent, establishing a child support 
239.7   obligation which may include up to the two years immediately 
239.8   preceding the commencement of the action, ordering a 
239.9   contribution by a parent under section 256.87, or ordering a 
239.10  contribution to the reasonable expenses of the mother's 
239.11  pregnancy and confinement, as provided under section 257.66, 
239.12  subdivision 3, or ordering reimbursement for the costs of blood 
239.13  or genetic testing, as provided under section 257.69, 
239.14  subdivision 2; 
239.15     (2) determinative for all other purposes related to the 
239.16  existence of the parent and child relationship; and 
239.17     (3) entitled to full faith and credit in other 
239.18  jurisdictions.  
239.19     Sec. 35.  Minnesota Statutes 1996, section 257.75, 
239.20  subdivision 4, is amended to read: 
239.21     Subd. 4.  [ACTION TO VACATE RECOGNITION.] (a) An action to 
239.22  vacate a recognition of paternity may be brought by the mother, 
239.23  father, husband or former husband who executed a joinder, or the 
239.24  child.  A mother, father, or husband or former husband who 
239.25  executed a joinder must bring the action within one year of the 
239.26  execution of the recognition or within six months after the 
239.27  person bringing the action obtains the results of blood or 
239.28  genetic tests that indicate that the man who executed the 
239.29  recognition is not the father of the child.  A child must bring 
239.30  an action to vacate within six months after the child obtains 
239.31  the result of blood or genetic tests that indicate that the man 
239.32  who executed the recognition is not the father of the child, or 
239.33  within one year of reaching the age of majority, whichever is 
239.34  later.  If the court finds a prima facie basis for vacating the 
239.35  recognition, the court shall order the child, mother, father, 
239.36  and husband or former husband who executed a joinder to submit 
240.1   to blood tests.  If the court issues an order for the taking of 
240.2   blood tests, the court shall require the party seeking to vacate 
240.3   the recognition to make advance payment for the costs of the 
240.4   blood tests.  If the party fails to pay for the costs of the 
240.5   blood tests, the court shall dismiss the action to vacate with 
240.6   prejudice.  The court may also order the party seeking to vacate 
240.7   the recognition to pay the other party's reasonable attorney 
240.8   fees, costs, and disbursements.  If the results of the blood 
240.9   tests establish that the man who executed the recognition is not 
240.10  the father, the court shall vacate the recognition.  If a 
240.11  recognition is vacated, any joinder in the recognition under 
240.12  subdivision 1a is also vacated.  The court shall terminate the 
240.13  obligation of a party to pay ongoing child support based on the 
240.14  recognition.  A modification of child support based on a 
240.15  recognition may be made retroactive with respect to any period 
240.16  during which the moving party has pending a motion to vacate the 
240.17  recognition but only from the date of service of notice of the 
240.18  motion on the responding party. 
240.19     (b) The burden of proof in an action to vacate the 
240.20  recognition is on the moving party.  The moving party must 
240.21  request the vacation on the basis of fraud, duress, or material 
240.22  mistake of fact.  The legal responsibilities in existence at the 
240.23  time of an action to vacate, including child support 
240.24  obligations, may not be suspended during the proceeding, except 
240.25  for good cause shown. 
240.26     Sec. 36.  Minnesota Statutes 1996, section 257.75, 
240.27  subdivision 5, is amended to read: 
240.28     Subd. 5.  [RECOGNITION FORM.] The commissioner of human 
240.29  services shall prepare a form for the recognition of parentage 
240.30  under this section.  In preparing the form, the commissioner 
240.31  shall consult with the individuals specified in subdivision 6.  
240.32  The recognition form must be drafted so that the force and 
240.33  effect of the recognition, the alternatives to executing a 
240.34  recognition, and the benefits and responsibilities of 
240.35  establishing paternity are clear and understandable.  The form 
240.36  must include a notice regarding the finality of a recognition 
241.1   and the revocation procedure under subdivision 2.  The form must 
241.2   include a provision for each parent to verify that the parent 
241.3   has read or viewed the educational materials prepared by the 
241.4   commissioner of human services describing the recognition of 
241.5   paternity.  If feasible, the individual providing the form to 
241.6   the parents for execution shall provide oral notice of the 
241.7   rights, responsibilities, and alternatives to executing the 
241.8   recognition.  Notice may be provided by audio tape, videotape, 
241.9   or similar means.  Each parent must receive a copy of the 
241.10  recognition. 
241.11     Sec. 37.  Minnesota Statutes 1996, section 257.75, 
241.12  subdivision 7, is amended to read: 
241.13     Subd. 7.  [HOSPITAL AND DEPARTMENT OF HEALTH DISTRIBUTION 
241.14  OF EDUCATIONAL MATERIALS; RECOGNITION FORM.] Hospitals that 
241.15  provide obstetric services and the state registrar of vital 
241.16  statistics shall distribute the educational materials and 
241.17  recognition of parentage forms prepared by the commissioner of 
241.18  human services to new parents and shall assist parents in 
241.19  understanding the recognition of parentage form., including 
241.20  following the provisions for notice under subdivision 5.  On and 
241.21  after January 1, 1994, hospitals may not distribute the 
241.22  declaration of parentage forms. 
241.23     Sec. 38.  Minnesota Statutes 1996, section 299C.46, 
241.24  subdivision 3, is amended to read: 
241.25     Subd. 3.  [AUTHORIZED USE, FEE.] (a) The data 
241.26  communications network shall be used exclusively by:  
241.27     (1) criminal justice agencies in connection with the 
241.28  performance of duties required by law; 
241.29     (2) agencies investigating federal security clearances of 
241.30  individuals for assignment or retention in federal employment 
241.31  with duties related to national security, as required by Public 
241.32  Law Number 99-1691; and 
241.33     (3) other agencies to the extent necessary to provide for 
241.34  protection of the public or property in an emergency or disaster 
241.35  situation.; and 
241.36     (4) the public authority responsible for child support 
242.1   enforcement in connection with the performance of its duties.  
242.2      (b) The commissioner of public safety shall establish a 
242.3   monthly network access charge to be paid by each participating 
242.4   criminal justice agency.  The network access charge shall be a 
242.5   standard fee established for each terminal, computer, or other 
242.6   equipment directly addressable by the criminal justice data 
242.7   communications network, as follows:  January 1, 1984 to December 
242.8   31, 1984, $40 connect fee per month; January 1, 1985 and 
242.9   thereafter, $50 connect fee per month.  
242.10     (c) The commissioner of public safety is authorized to 
242.11  arrange for the connection of the data communications network 
242.12  with the criminal justice information system of the federal 
242.13  government, any adjacent state, or Canada. 
242.14     Sec. 39.  Minnesota Statutes 1996, section 508.63, is 
242.15  amended to read: 
242.16     508.63 [REGISTRATION OF INSTRUMENTS CREATING LIENS; 
242.17  JUDGMENTS.] 
242.18     No judgment requiring the payment of money shall be a lien 
242.19  upon registered land, except as herein provided.  Any person 
242.20  claiming such lien shall file with the registrar a certified 
242.21  copy of the judgment, together with a written statement 
242.22  containing a description of each parcel of land in which the 
242.23  judgment debtor has a registered interest and upon which the 
242.24  lien is claimed, and a proper reference to the certificate or 
242.25  certificates of title to such land.  Upon filing such copy and 
242.26  statement, the registrar shall enter a memorial of such judgment 
242.27  upon each certificate designated in such statement, and the 
242.28  judgment shall thereupon be and become a lien upon the judgment 
242.29  debtor's interest in the land described in such certificate or 
242.30  certificates.  At any time after filing the certified copy of 
242.31  such judgment, any person claiming the lien may, by filing a 
242.32  written statement, as herein provided, cause a memorial of such 
242.33  judgment to be entered upon any certificate of title to land in 
242.34  which the judgment debtor has a registered interest and not 
242.35  described in any previous statement and the judgment shall 
242.36  thereupon be and become a lien upon the judgment debtor's 
243.1   interest in such land.  The public authority for child support 
243.2   enforcement may present for filing a notice of judgment lien 
243.3   under section 548.091 with identifying information for a parcel 
243.4   of real property.  Upon receipt of the notice of judgment lien, 
243.5   the registrar shall enter a memorial of it upon each certificate 
243.6   which can reasonably be identified as owned by the judgment 
243.7   debtor on the basis of the information provided.  The judgment 
243.8   shall survive and the lien thereof shall continue for a period 
243.9   of ten years from the date of the judgment and no longer, and 
243.10  the registrar of titles shall not carry forward to a new 
243.11  certificate of title the memorial of the judgment after that 
243.12  period.  In every case where an instrument of any description, 
243.13  or a copy of any writ, order, or decree, is required by law to 
243.14  be filed or recorded in order to create or preserve any lien, 
243.15  writ, or attachment upon unregistered land, such instrument or 
243.16  copy, if intended to affect registered land, shall, in lieu of 
243.17  recording, be filed and registered with the registrar.  In 
243.18  addition to any facts required by law to be stated in such 
243.19  instruments to entitle them to be filed or recorded, they shall 
243.20  also contain a reference to the number of the certificate of 
243.21  title of the land to be affected, and, if the attachment, 
243.22  charge, or lien is not claimed on all the land described in any 
243.23  certificate of title, such instrument shall contain a 
243.24  description sufficient to identify the land. 
243.25     Sec. 40.  Minnesota Statutes 1996, section 508A.63, is 
243.26  amended to read: 
243.27     508A.63 [REGISTRATION OF INSTRUMENTS CREATING LIENS; 
243.28  JUDGMENTS.] 
243.29     No judgment requiring the payment of money shall be a lien 
243.30  upon land registered under sections 508A.01 to 508A.85, except 
243.31  as herein provided.  Any person claiming a lien shall file with 
243.32  the registrar a certified copy of the judgment, together with a 
243.33  written statement containing a description of each parcel of 
243.34  land in which the judgment debtor has a registered interest and 
243.35  upon which the lien is claimed, and a proper reference to the 
243.36  CPT or CPTs to the land.  Upon filing the copy and statement, 
244.1   the registrar shall enter a memorial of the judgment upon each 
244.2   CPT designated in the statement, and the judgment shall then be 
244.3   and become a lien upon the judgment debtor's interest in the 
244.4   land described in CPT or CPTs.  At any time after filing the 
244.5   certified copy of the judgment, any person claiming the lien 
244.6   may, by filing a written statement, as herein provided, cause a 
244.7   memorial of the judgment to be entered upon any CPT to land in 
244.8   which the judgment debtor has a registered interest and not 
244.9   described in any previous statement and the judgment shall then 
244.10  be and become a lien upon the judgment debtor's interest in the 
244.11  land.  The public authority for child support enforcement may 
244.12  present for filing a notice of judgment lien under section 
244.13  548.091 with identifying information for a parcel of real 
244.14  property.  Upon receipt of the notice of judgment lien, the 
244.15  registrar shall enter a memorial of it upon each certificate of 
244.16  possessory title which reasonably can be identified as owned by 
244.17  the judgment debtor on the basis of the information provided.  
244.18  The judgment shall survive and the lien thereof shall continue 
244.19  for a period of ten years from the date of the judgment and no 
244.20  longer; and the registrar shall not carry forward to a new 
244.21  certificate of title the memorial of the judgment after that 
244.22  period.  In every case where an instrument of any description, 
244.23  or a copy of any writ, order, or decree, is required by law to 
244.24  be filed or recorded in order to create or preserve any lien, 
244.25  writ, or attachment upon unregistered land, the instrument or 
244.26  copy, if intended to affect registered land, shall, in lieu of 
244.27  recording, be filed and registered with the registrar.  In 
244.28  addition to any facts required by law to be stated in the 
244.29  instruments to entitle them to be filed or recorded, they shall 
244.30  also contain a reference to the number of the CPT of the land to 
244.31  be affected.  If the attachment, charge, or lien is not claimed 
244.32  on all the land described in any CPT, the instrument shall 
244.33  contain a description sufficient to identify the land. 
244.34     Sec. 41.  Minnesota Statutes 1996, section 518.005, is 
244.35  amended by adding a subdivision to read: 
244.36     Subd. 5.  [PROHIBITED DISCLOSURE.] In all proceedings under 
245.1   this chapter in which public assistance is assigned under 
245.2   section 256.741 or the public authority provides services to a 
245.3   party or parties to the proceedings, notwithstanding statutory 
245.4   or other authorization for the public authority to release 
245.5   private data on the location of a party to the action, 
245.6   information on the location of one party may not be released by 
245.7   the public authority to the other party if: 
245.8      (1) the public authority has knowledge that a protective 
245.9   order with respect to the other party has been entered; or 
245.10     (2) the public authority has reason to believe that the 
245.11  release of the information may result in physical or emotional 
245.12  harm to the other party. 
245.13     Sec. 42.  Minnesota Statutes 1996, section 518.10, is 
245.14  amended to read: 
245.15     518.10 [REQUISITES OF PETITION.] 
245.16     The petition for dissolution of marriage or legal 
245.17  separation shall state and allege: 
245.18     (a) The name and, address, and, in circumstances in which 
245.19  child support or spousal maintenance will be addressed, social 
245.20  security number of the petitioner and any prior or other name 
245.21  used by the petitioner; 
245.22     (b) The name and, if known, the address and, in 
245.23  circumstances in which child support or spousal maintenance will 
245.24  be addressed, social security number of the respondent and any 
245.25  prior or other name used by the respondent and known to the 
245.26  petitioner; 
245.27     (c) The place and date of the marriage of the parties; 
245.28     (d) In the case of a petition for dissolution, that either 
245.29  the petitioner or the respondent or both:  
245.30     (1) Has resided in this state for not less than 180 days 
245.31  immediately preceding the commencement of the proceeding, or 
245.32     (2) Has been a member of the armed services and has been 
245.33  stationed in this state for not less than 180 days immediately 
245.34  preceding the commencement of the proceeding, or 
245.35     (3) Has been a domiciliary of this state for not less than 
245.36  180 days immediately preceding the commencement of the 
246.1   proceeding; 
246.2      (e) The name at the time of the petition and any prior or 
246.3   other name, age and date of birth of each living minor or 
246.4   dependent child of the parties born before the marriage or born 
246.5   or adopted during the marriage and a reference to, and the 
246.6   expected date of birth of, a child of the parties conceived 
246.7   during the marriage but not born; 
246.8      (f) Whether or not a separate proceeding for dissolution, 
246.9   legal separation, or custody is pending in a court in this state 
246.10  or elsewhere; 
246.11     (g) In the case of a petition for dissolution, that there 
246.12  has been an irretrievable breakdown of the marriage 
246.13  relationship; 
246.14     (h) In the case of a petition for legal separation, that 
246.15  there is a need for a decree of legal separation; and 
246.16     (i) Any temporary or permanent maintenance, child support, 
246.17  child custody, disposition of property, attorneys' fees, costs 
246.18  and disbursements applied for without setting forth the amounts. 
246.19     The petition shall be verified by the petitioner or 
246.20  petitioners, and its allegations established by competent 
246.21  evidence.  
246.22     Sec. 43.  Minnesota Statutes 1996, section 518.148, 
246.23  subdivision 2, is amended to read: 
246.24     Subd. 2.  [REQUIRED INFORMATION.] The certificate shall 
246.25  include the following information: 
246.26     (1) the full caption and file number of the case and the 
246.27  title "Certificate of Dissolution"; 
246.28     (2) the names and any prior or other names of the parties 
246.29  to the dissolution; 
246.30     (3) the names of any living minor or dependent children as 
246.31  identified in the judgment and decree; 
246.32     (4) that the marriage of the parties is dissolved; and 
246.33     (5) the date of the judgment and decree.; and 
246.34     (6) the social security number of the parties to the 
246.35  dissolution and the social security number of any living minor 
246.36  or dependent children identified in the judgment and decree. 
247.1      Sec. 44.  Minnesota Statutes 1996, section 518.171, 
247.2   subdivision 1, is amended to read: 
247.3      Subdivision 1.  [ORDER.] Compliance with this section 
247.4   constitutes compliance with a qualified medical child support 
247.5   order as described in the federal Employee Retirement Income 
247.6   Security Act of 1974 (ERISA) as amended by the federal Omnibus 
247.7   Budget Reconciliation Act of 1993 (OBRA).  
247.8      (a) Every child support order must: 
247.9      (1) expressly assign or reserve the responsibility for 
247.10  maintaining medical insurance for the minor children and the 
247.11  division of uninsured medical and dental costs; and 
247.12     (2) contain the names and, last known addresses, if any and 
247.13  social security number of the custodial parent and noncustodial 
247.14  parent, of the dependents unless the court prohibits the 
247.15  inclusion of an address or social security number and orders the 
247.16  custodial parent to provide the address and social security 
247.17  number to the administrator of the health plan.  The court shall 
247.18  order the party with the better group dependent health and 
247.19  dental insurance coverage or health insurance plan to name the 
247.20  minor child as beneficiary on any health and dental insurance 
247.21  plan that is available to the party on: 
247.22     (i) a group basis; 
247.23     (ii) through an employer or union; or 
247.24     (iii) through a group health plan governed under the ERISA 
247.25  and included within the definitions relating to health plans 
247.26  found in section 62A.011, 62A.048, or 62E.06, subdivision 2.  
247.27  "Health insurance" or "health insurance coverage" as used in 
247.28  this section means coverage that is comparable to or better than 
247.29  a number two qualified plan as defined in section 62E.06, 
247.30  subdivision 2.  "Health insurance" or "health insurance 
247.31  coverage" as used in this section does not include medical 
247.32  assistance provided under chapter 256, 256B, or 256D. 
247.33     (b) If the court finds that dependent health or dental 
247.34  insurance is not available to the obligor or obligee on a group 
247.35  basis or through an employer or union, or that group insurance 
247.36  is not accessible to the obligee, the court may require the 
248.1   obligor (1) to obtain other dependent health or dental 
248.2   insurance, (2) to be liable for reasonable and necessary medical 
248.3   or dental expenses of the child, or (3) to pay no less than $50 
248.4   per month to be applied to the medical and dental expenses of 
248.5   the children or to the cost of health insurance dependent 
248.6   coverage. 
248.7      (c) If the court finds that the available dependent health 
248.8   or dental insurance does not pay all the reasonable and 
248.9   necessary medical or dental expenses of the child, including any 
248.10  existing or anticipated extraordinary medical expenses, and the 
248.11  court finds that the obligor has the financial ability to 
248.12  contribute to the payment of these medical or dental expenses, 
248.13  the court shall require the obligor to be liable for all or a 
248.14  portion of the medical or dental expenses of the child not 
248.15  covered by the required health or dental plan.  Medical and 
248.16  dental expenses include, but are not limited to, necessary 
248.17  orthodontia and eye care, including prescription lenses. 
248.18     (d) Unless otherwise agreed by the parties and approved by 
248.19  the court, if the court finds that the obligee is not receiving 
248.20  public assistance for the child and has the financial ability to 
248.21  contribute to the cost of medical and dental expenses for the 
248.22  child, including the cost of insurance, the court shall order 
248.23  the obligee and obligor to each assume a portion of these 
248.24  expenses based on their proportionate share of their total net 
248.25  income as defined in section 518.54, subdivision 6. 
248.26     (e) Payments ordered under this section are subject to 
248.27  section 518.611.  An obligee who fails to apply payments 
248.28  received to the medical expenses of the dependents may be found 
248.29  in contempt of this order. 
248.30     Sec. 45.  Minnesota Statutes 1996, section 518.171, 
248.31  subdivision 4, is amended to read: 
248.32     Subd. 4.  [EFFECT OF ORDER.] (a) The order is binding on 
248.33  the employer or union and the health and dental insurance plan 
248.34  when service under subdivision 3 has been made.  In the case of 
248.35  an obligor who changes employment and is required to provide 
248.36  health coverage for the child, a new employer that provides 
249.1   health care coverage shall enroll the child in the obligor's 
249.2   health plan upon receipt of an order or notice for health 
249.3   insurance, unless the obligor contests the enrollment.  The 
249.4   obligor may contest the enrollment on the limited grounds that 
249.5   the enrollment is improper due to mistake of fact or that the 
249.6   enrollment meets the requirements of section 518.64, subdivision 
249.7   2.  If the obligor chooses to contest the enrollment, the 
249.8   obligor must do so no later than 15 days after the employer 
249.9   notifies the obligor of the enrollment, by doing all of the 
249.10  following: 
249.11     (i) filing a request for contested hearing according to 
249.12  section 518.5511, subdivision 3a; 
249.13     (ii) serving a copy of the request for contested hearing 
249.14  upon the public authority and the obligee; and 
249.15     (iii) securing a date for the contested hearing no later 
249.16  than 45 days after the notice of enrollment. 
249.17     (b) The enrollment must remain in place during the time 
249.18  period in which the obligor contests the withholding. 
249.19     (c) If the court finds that an arrearage of at least 30 
249.20  days existed as of the date of the notice of withholding, the 
249.21  court shall order income withholding to continue.  If the court 
249.22  finds a mistake in the amount of the arrearage to be withheld, 
249.23  the court shall continue the income withholding, but it shall 
249.24  correct the amount of the arrearage to be withheld. An employer 
249.25  or union that is included under ERISA may not deny enrollment 
249.26  based on exclusionary clauses described in section 62A.048.  
249.27  Upon receipt of the order, or upon application of the 
249.28  obligor pursuant according to the order or notice, the employer 
249.29  or union and its health and dental insurance plan shall enroll 
249.30  the minor child as a beneficiary in the group insurance plan and 
249.31  withhold any required premium from the obligor's income or 
249.32  wages.  If more than one plan is offered by the employer or 
249.33  union, the child shall be enrolled in the least costly health 
249.34  insurance plan otherwise available to the obligor that is 
249.35  comparable to a number two qualified plan.  If the obligor is 
249.36  not enrolled in a health insurance plan, the employer or union 
250.1   shall also enroll the obligor in the chosen plan if enrollment 
250.2   of the obligor is necessary in order to obtain dependent 
250.3   coverage under the plan.  Enrollment of dependents and the 
250.4   obligor shall be immediate and not dependent upon open 
250.5   enrollment periods.  Enrollment is not subject to the 
250.6   underwriting policies described in section 62A.048.  
250.7      (b) An employer or union that willfully fails to comply 
250.8   with the order is liable for any health or dental expenses 
250.9   incurred by the dependents during the period of time the 
250.10  dependents were eligible to be enrolled in the insurance 
250.11  program, and for any other premium costs incurred because the 
250.12  employer or union willfully failed to comply with the order.  An 
250.13  employer or union that fails to comply with the order is subject 
250.14  to contempt under section 518.615 and is also subject to a fine 
250.15  of $500 to be paid to the obligee or public authority.  Fines 
250.16  paid to the public authority are designated for child support 
250.17  enforcement services. 
250.18     (c) Failure of the obligor to execute any documents 
250.19  necessary to enroll the dependent in the group health and dental 
250.20  insurance plan will not affect the obligation of the employer or 
250.21  union and group health and dental insurance plan to enroll the 
250.22  dependent in a plan.  Information and authorization provided by 
250.23  the public authority responsible for child support enforcement, 
250.24  or by the custodial parent or guardian, is valid for the 
250.25  purposes of meeting enrollment requirements of the health plan.  
250.26  The insurance coverage for a child eligible under subdivision 5 
250.27  shall not be terminated except as authorized in subdivision 5. 
250.28     Sec. 46.  Minnesota Statutes 1996, section 518.54, is 
250.29  amended by adding a subdivision to read: 
250.30     Subd. 4a.  [SUPPORT ORDER.] "Support order" means a 
250.31  judgment, decree, or order, whether temporary, final, or subject 
250.32  to modification, issued by a court or administrative agency of 
250.33  competent jurisdiction, for the support and maintenance of a 
250.34  child, including a child who has attained the age of majority 
250.35  under the law of the issuing state, or a child and the parent 
250.36  with whom the child is living, that provides for monetary 
251.1   support, child care, medical support including expenses for 
251.2   confinement and pregnancy, arrearages, or reimbursement, and 
251.3   which may include related costs and fees, interest and 
251.4   penalties, income withholding, and other relief. This definition 
251.5   applies to orders issued under this chapter and chapters 256, 
251.6   257, and 518C. 
251.7      Sec. 47.  Minnesota Statutes 1996, section 518.54, 
251.8   subdivision 6, is amended to read: 
251.9      Subd. 6.  [INCOME.] "Income" means any form of periodic 
251.10  payment to an individual including, but not limited to, wages, 
251.11  salaries, payments to an independent contractor, workers' 
251.12  compensation, reemployment insurance, annuity, military and 
251.13  naval retirement, pension and disability payments.  Benefits 
251.14  received under sections 256.72 to 256.87 and chapter 256D Title 
251.15  IV-A of the Social Security Act are not income under this 
251.16  section. 
251.17     Sec. 48.  Minnesota Statutes 1996, section 518.551, 
251.18  subdivision 12, is amended to read: 
251.19     Subd. 12.  [OCCUPATIONAL LICENSE SUSPENSION.] (a) Upon 
251.20  motion of an obligee, if the court finds that the obligor is or 
251.21  may be licensed by a licensing board listed in section 214.01 or 
251.22  other state, county, or municipal agency or board that issues an 
251.23  occupational license and the obligor is in arrears in 
251.24  court-ordered child support or maintenance payments or both in 
251.25  an amount equal to or greater than three times the obligor's 
251.26  total monthly support and maintenance payments and is not in 
251.27  compliance with a written payment agreement regarding both 
251.28  current support and arrearages approved by the court, an 
251.29  administrative law judge, or the public authority, the 
251.30  administrative law judge, or the court shall direct the 
251.31  licensing board or other licensing agency to suspend the license 
251.32  under section 214.101.  The court's order must be stayed for 90 
251.33  days in order to allow the obligor to execute a written payment 
251.34  agreement regarding both current support and arrearages.  The 
251.35  payment agreement must be approved by either the court or the 
251.36  public authority responsible for child support enforcement.  If 
252.1   the obligor has not executed or is not in compliance with a 
252.2   written payment agreement regarding both current support and 
252.3   arrearages after the 90 days expires, the court's order becomes 
252.4   effective.  If the obligor is a licensed attorney, the court 
252.5   shall report the matter to the lawyers professional 
252.6   responsibility board for appropriate action in accordance with 
252.7   the rules of professional conduct.  The remedy under this 
252.8   subdivision is in addition to any other enforcement remedy 
252.9   available to the court. 
252.10     (b) If a public authority responsible for child support 
252.11  enforcement finds that the obligor is or may be licensed by a 
252.12  licensing board listed in section 214.01 or other state, county, 
252.13  or municipal agency or board that issues an occupational license 
252.14  and the obligor is in arrears in court-ordered child support or 
252.15  maintenance payments or both in an amount equal to or greater 
252.16  than three times the obligor's total monthly support and 
252.17  maintenance payments and is not in compliance with a written 
252.18  payment agreement regarding both current support and arrearages 
252.19  approved by the court, an administrative law judge, or the 
252.20  public authority, the court, an administrative law judge, or the 
252.21  public authority shall direct the licensing board or other 
252.22  licensing agency to suspend the license under section 214.101.  
252.23  If the obligor is a licensed attorney, the public authority may 
252.24  report the matter to the lawyers professional responsibility 
252.25  board for appropriate action in accordance with the rules of 
252.26  professional conduct.  The remedy under this subdivision is in 
252.27  addition to any other enforcement remedy available to the public 
252.28  authority. 
252.29     (c) At least 90 days before notifying a licensing authority 
252.30  or the lawyers professional responsibility board under paragraph 
252.31  (b), the public authority shall mail a written notice to the 
252.32  license holder addressed to the license holder's last known 
252.33  address that the public authority intends to seek license 
252.34  suspension under this subdivision and that the license holder 
252.35  must request a hearing within 30 days in order to contest the 
252.36  suspension.  If the license holder makes a written request for a 
253.1   hearing within 30 days of the date of the notice, either a court 
253.2   hearing or a contested administrative proceeding must be held 
253.3   under section 518.5511, subdivision 4.  Notwithstanding any law 
253.4   to the contrary, the license holder must be served with 14 days' 
253.5   notice in writing specifying the time and place of the hearing 
253.6   and the allegations against the license holder.  The notice may 
253.7   be served personally or by mail.  If the public authority does 
253.8   not receive a request for a hearing within 30 days of the date 
253.9   of the notice, and the obligor does not execute a written 
253.10  payment agreement regarding both current support and arrearages 
253.11  approved by the court, an administrative law judge or the public 
253.12  authority within 90 days of the date of the notice, the public 
253.13  authority shall direct the licensing board or other licensing 
253.14  agency to suspend the obligor's license under paragraph (b), or 
253.15  shall report the matter to the lawyers professional 
253.16  responsibility board. 
253.17     (d) The administrative law judge, on behalf of the public 
253.18  authority, or the court shall notify the lawyers professional 
253.19  responsibility board for appropriate action in accordance with 
253.20  the rules of professional responsibility conduct or order the 
253.21  licensing board or licensing agency to suspend the license if 
253.22  the judge finds that: 
253.23     (1) the person is licensed by a licensing board or other 
253.24  state agency that issues an occupational license; 
253.25     (2) the person has not made full payment of arrearages 
253.26  found to be due by the public authority; and 
253.27     (3) the person has not executed or is not in compliance 
253.28  with a payment plan approved by the court, an administrative law 
253.29  judge, or the public authority. 
253.30     (e) Within 15 days of the date on which the obligor either 
253.31  makes full payment of arrearages found to be due by the court or 
253.32  public authority or executes and initiates good faith compliance 
253.33  with a written payment plan approved by the court, an 
253.34  administrative law judge, or the public authority, the court, an 
253.35  administrative law judge, or the public authority responsible 
253.36  for child support enforcement shall notify the licensing board 
254.1   or licensing agency or the lawyers professional responsibility 
254.2   board that the obligor is no longer ineligible for license 
254.3   issuance, reinstatement, or renewal under this subdivision. 
254.4      (f) In addition to the criteria established under this 
254.5   section for the suspension of an obligor's occupational license, 
254.6   a court, an administrative law judge, or the public authority 
254.7   may direct the licensing board or other licensing agency to 
254.8   suspend the license of an obligor who has failed, after 
254.9   receiving notice, to comply with a subpoena or warrant relating 
254.10  to a paternity or child support proceeding. 
254.11     Sec. 49.  Minnesota Statutes 1996, section 518.551, 
254.12  subdivision 13, is amended to read: 
254.13     Subd. 13.  [DRIVER'S LICENSE SUSPENSION.] (a) Upon motion 
254.14  of an obligee, which has been properly served on the obligor and 
254.15  upon which there has been an opportunity for hearing, if a court 
254.16  finds that the obligor has been or may be issued a driver's 
254.17  license by the commissioner of public safety and the obligor is 
254.18  in arrears in court-ordered child support or maintenance 
254.19  payments, or both, in an amount equal to or greater than three 
254.20  times the obligor's total monthly support and maintenance 
254.21  payments and is not in compliance with a written payment 
254.22  agreement regarding both current support and arrearages approved 
254.23  by the court, an administrative law judge, or the public 
254.24  authority, the court shall order the commissioner of public 
254.25  safety to suspend the obligor's driver's license.  The court's 
254.26  order must be stayed for 90 days in order to allow the obligor 
254.27  to execute a written payment agreement regarding both current 
254.28  support and arrearages, which payment agreement must be approved 
254.29  by either the court or the public authority responsible for 
254.30  child support enforcement.  If the obligor has not executed or 
254.31  is not in compliance with a written payment agreement regarding 
254.32  both current support and arrearages after the 90 days expires, 
254.33  the court's order becomes effective and the commissioner of 
254.34  public safety shall suspend the obligor's driver's license.  The 
254.35  remedy under this subdivision is in addition to any other 
254.36  enforcement remedy available to the court.  An obligee may not 
255.1   bring a motion under this paragraph within 12 months of a denial 
255.2   of a previous motion under this paragraph. 
255.3      (b) If a public authority responsible for child support 
255.4   enforcement determines that the obligor has been or may be 
255.5   issued a driver's license by the commissioner of public safety 
255.6   and the obligor is in arrears in court-ordered child support or 
255.7   maintenance payments or both in an amount equal to or greater 
255.8   than three times the obligor's total monthly support and 
255.9   maintenance payments and not in compliance with a written 
255.10  payment agreement regarding both current support and arrearages 
255.11  approved by the court, an administrative law judge, or the 
255.12  public authority, the public authority shall direct the 
255.13  commissioner of public safety to suspend the obligor's driver's 
255.14  license.  The remedy under this subdivision is in addition to 
255.15  any other enforcement remedy available to the public authority. 
255.16     (c) At least 90 days prior to notifying the commissioner of 
255.17  public safety pursuant according to paragraph (b), the public 
255.18  authority must mail a written notice to the obligor at the 
255.19  obligor's last known address, that it intends to seek suspension 
255.20  of the obligor's driver's license and that the obligor must 
255.21  request a hearing within 30 days in order to contest the 
255.22  suspension.  If the obligor makes a written request for a 
255.23  hearing within 30 days of the date of the notice, either a court 
255.24  hearing or a contested administrative proceeding must be held 
255.25  under section 518.5511, subdivision 4.  Notwithstanding any law 
255.26  to the contrary, the obligor must be served with 14 days' notice 
255.27  in writing specifying the time and place of the hearing and the 
255.28  allegations against the obligor.  The notice may be served 
255.29  personally or by mail.  If the public authority does not receive 
255.30  a request for a hearing within 30 days of the date of the 
255.31  notice, and the obligor does not execute a written payment 
255.32  agreement regarding both current support and arrearages approved 
255.33  by the court, an administrative law judge, or the public 
255.34  authority within 90 days of the date of the notice, the public 
255.35  authority shall direct the commissioner of public safety to 
255.36  suspend the obligor's driver's license under paragraph (b). 
256.1      (d) At a hearing requested by the obligor under paragraph 
256.2   (c), and on finding that the obligor is in arrears in 
256.3   court-ordered child support or maintenance payments or both in 
256.4   an amount equal to or greater than three times the obligor's 
256.5   total monthly support and maintenance payments, the district 
256.6   court or the administrative law judge shall order the 
256.7   commissioner of public safety to suspend the obligor's driver's 
256.8   license or operating privileges unless the court or 
256.9   administrative law judge determines that the obligor has 
256.10  executed and is in compliance with a written payment agreement 
256.11  regarding both current support and arrearages approved by the 
256.12  court, an administrative law judge, or the public authority. 
256.13     (e) An obligor whose driver's license or operating 
256.14  privileges are suspended may provide proof to the court or the 
256.15  public authority responsible for child support enforcement that 
256.16  the obligor is in compliance with all written payment agreements 
256.17  regarding both current support and arrearages.  Within 15 days 
256.18  of the receipt of that proof, the court or public authority 
256.19  shall inform the commissioner of public safety that the 
256.20  obligor's driver's license or operating privileges should no 
256.21  longer be suspended. 
256.22     (f) On January 15, 1997, and every two years after that, 
256.23  the commissioner of human services shall submit a report to the 
256.24  legislature that identifies the following information relevant 
256.25  to the implementation of this section: 
256.26     (1) the number of child support obligors notified of an 
256.27  intent to suspend a driver's license; 
256.28     (2) the amount collected in payments from the child support 
256.29  obligors notified of an intent to suspend a driver's license; 
256.30     (3) the number of cases paid in full and payment agreements 
256.31  executed in response to notification of an intent to suspend a 
256.32  driver's license; 
256.33     (4) the number of cases in which there has been 
256.34  notification and no payments or payment agreements; 
256.35     (5) the number of driver's licenses suspended; and 
256.36     (6) the cost of implementation and operation of the 
257.1   requirements of this section. 
257.2      (g) In addition to the criteria established under this 
257.3   section for the suspension of an obligor's driver's license, a 
257.4   court, an administrative law judge, or the public authority may 
257.5   direct the commissioner of public safety to suspend the license 
257.6   of an obligor who has failed, after receiving notice, to comply 
257.7   with a subpoena or warrant relating to a paternity or child 
257.8   support proceeding. 
257.9      Sec. 50.  Minnesota Statutes 1996, section 518.5512, is 
257.10  amended by adding a subdivision to read: 
257.11     Subd. 6.  [ADMINISTRATIVE AUTHORITY.] (a) In each case in 
257.12  which support rights are assigned under section 256.741, 
257.13  subdivision 1, or where the public authority is providing 
257.14  services under an application for child support services, a 
257.15  nonattorney employee of the public authority may, without 
257.16  requirement of a court order: 
257.17     (1) recognize and enforce orders of child support agencies 
257.18  of other states; 
257.19     (2) compel by subpoena the production of all papers, books, 
257.20  records, documents, or other evidentiary material needed to 
257.21  establish a parentage or child support order or to modify or 
257.22  enforce a child support order; 
257.23     (3) change the payee to the appropriate person, 
257.24  organization, or agency authorized to receive or collect child 
257.25  support or any other person or agency designated as the 
257.26  caretaker of the child by agreement of the legal custodian or by 
257.27  court order; 
257.28     (4) order income withholding of child support under section 
257.29  518.611; 
257.30     (5) secure assets to satisfy the debt or arrearage in cases 
257.31  in which there is a support debt or arrearage by: 
257.32     (i) intercepting or seizing periodic or lump-sum payments 
257.33  from state or local agencies, including reemployment insurance, 
257.34  workers' compensation payments, judgments, settlements, and 
257.35  lotteries; 
257.36     (ii) attaching and seizing assets of the obligor held in 
258.1   financial institutions or public or private retirement funds; 
258.2   and 
258.3      (iii) imposing liens and, in appropriate cases, forcing the 
258.4   sale of property and the distribution of proceeds; and 
258.5      (6) increase the amount of the monthly support payments to 
258.6   include amounts for debts or arrearages for the purpose of 
258.7   securing overdue support.  
258.8      (b) Subpoenas may be served anywhere within the state and 
258.9   served outside the state in the same manner as prescribed by law 
258.10  for service of process of subpoenas issued by the district court 
258.11  of this state.  When a subpoena under this subdivision is served 
258.12  on a third-party recordkeeper, written notice of the subpoena 
258.13  shall be mailed to the person who is the subject of the 
258.14  subpoenaed material at the person's last known address within 
258.15  three days of the day the subpoena is served.  This notice 
258.16  provision does not apply if there is reasonable cause to believe 
258.17  the giving of the notice may lead to interference with the 
258.18  production of the subpoenaed documents. 
258.19     (c) A person served with a subpoena may make a written 
258.20  objection to the public authority or court before the time 
258.21  specified in the subpoena for compliance.  The public authority 
258.22  or the court shall cancel or modify the subpoena, if 
258.23  appropriate.  The public authority shall pay the reasonable 
258.24  costs of producing the documents, if requested. 
258.25     (d) Subpoenas shall be enforceable in the same manner as 
258.26  subpoenas of the district court, in proceedings initiated by 
258.27  complaint of the public authority in the district court. 
258.28     Sec. 51.  Minnesota Statutes 1996, section 518.5512, is 
258.29  amended by adding a subdivision to read: 
258.30     Subd. 7.  [CONTROLLING ORDER DETERMINATION.] The public 
258.31  authority or a party may request the office of administrative 
258.32  hearings to determine a controlling order according to section 
258.33  518C.207, paragraph (c). 
258.34     Sec. 52.  [518.6111] [INCOME WITHHOLDING.] 
258.35     Subdivision 1.  [DEFINITIONS.] (a) For the purpose of this 
258.36  section, the following terms have the meanings provided in this 
259.1   subdivision unless otherwise stated. 
259.2      (b) "Payor of funds" means any person or entity that 
259.3   provides funds to an obligor, including an employer as defined 
259.4   under chapter 24 of the Internal Revenue Code, section 3401(d), 
259.5   an independent contractor, payor of workers' compensation 
259.6   benefits or reemployment insurance, or a financial institution 
259.7   as defined in section 256.978, subdivision 2, paragraph (b). 
259.8      (c) "Business day" means a day on which state offices are 
259.9   open for regular business. 
259.10     (d) "Arrears" means amounts owed under a support order that 
259.11  are past due. 
259.12     Subd. 2.  [APPLICATION.] This section applies to all 
259.13  support orders issued by a court or an administrative tribunal 
259.14  and orders for or notices of withholding issued by the public 
259.15  authority according to section 518.5512, subdivision 6, 
259.16  paragraph (a), clause (4). 
259.17     Subd. 3.  [ORDER.] Every support order must address income 
259.18  withholding.  Whenever a support order is initially entered or 
259.19  modified, the full amount of the support order must be withheld 
259.20  from the income of the obligor and forwarded to the public 
259.21  authority.  Every order for support or maintenance shall provide 
259.22  for a conspicuous notice of the provisions of this section that 
259.23  complies with section 518.68, subdivision 2.  An order without 
259.24  this notice remains subject to this section.  This section 
259.25  applies regardless of the source of income of the person 
259.26  obligated to pay the support or maintenance. 
259.27     A payor of funds shall implement income withholding 
259.28  according to this section upon receipt of an order for or notice 
259.29  of withholding.  The notice of withholding shall be on a form 
259.30  provided by the commissioner of human services. 
259.31     Subd. 4.  [COLLECTION SERVICES.] The commissioner of human 
259.32  services shall prepare and make available to the courts a notice 
259.33  of services that explains child support and maintenance 
259.34  collection services available through the public authority, 
259.35  including income withholding.  Upon receiving a petition for 
259.36  dissolution of marriage or legal separation, the court 
260.1   administrator shall promptly send the notice of services to the 
260.2   petitioner and respondent at the addresses stated in the 
260.3   petition. 
260.4      Upon receipt of a support order requiring income 
260.5   withholding, a petitioner or respondent, who is not a recipient 
260.6   of public assistance and does not receive child support services 
260.7   from the public authority, shall apply to the public authority 
260.8   for either full child support collection services or for income 
260.9   withholding only services. 
260.10     For those persons applying for income withholding only 
260.11  services, a monthly service fee of $15 must be charged to the 
260.12  obligor.  This fee is in addition to the amount of the support 
260.13  order and shall be withheld through income withholding.  The 
260.14  public authority shall explain the service options in this 
260.15  section to the affected parties and encourage the application 
260.16  for full child support collection services. 
260.17     Subd. 5.  [PAYOR OF FUNDS RESPONSIBILITIES.] (a) An order 
260.18  for or notice of withholding is binding on a payor of funds upon 
260.19  receipt.  Withholding must begin no later than the first pay 
260.20  period that occurs after 14 days following the date of receipt 
260.21  of the order for or notice of withholding.  In the case of a 
260.22  financial institution, preauthorized transfers must occur in 
260.23  accordance with a court-ordered payment schedule. 
260.24     (b) A payor of funds shall withhold from the income payable 
260.25  to the obligor the amount specified in the order or notice of 
260.26  withholding and amounts specified under subdivisions 6 and 9 and 
260.27  shall remit the amounts withheld to the public authority within 
260.28  seven business days of the date the obligor is paid the 
260.29  remainder of the income.  The payor of funds shall include with 
260.30  the remittance the social security number of the obligor, the 
260.31  case type indicator, and the date the obligor is paid the 
260.32  remainder of the income.  The obligor is considered to have paid 
260.33  the amount withheld as of the date the obligor received the 
260.34  remainder of the income.  A payor of funds may combine all 
260.35  amounts withheld from one pay period into one payment to each 
260.36  public authority, but shall separately identify each obligor 
261.1   making payment. 
261.2      (c) A payor of funds shall not discharge, or refuse to 
261.3   hire, or otherwise discipline an employee as a result of wage or 
261.4   salary withholding authorized by this section.  A payor of funds 
261.5   shall be liable to the obligee for any amounts required to be 
261.6   withheld.  A payor of funds that fails to withhold or transfer 
261.7   funds in accordance with this section is also liable to the 
261.8   obligee for interest on the funds at the rate applicable to 
261.9   judgments under section 549.09 computed from the date the funds 
261.10  were required to be withheld or transferred.  A payor of funds 
261.11  is liable for reasonable attorney fees of the obligee or public 
261.12  authority incurred in enforcing the liability under this 
261.13  paragraph.  A payor of funds that has failed to comply with the 
261.14  requirements of this section is subject to contempt sanctions 
261.15  under section 518.615.  If the payor of funds is an employer or 
261.16  independent contractor and violates this subdivision, a court 
261.17  may award the obligor twice the wages lost as a result of this 
261.18  violation.  If a court finds a payor of funds violated this 
261.19  subdivision, the court shall impose a civil fine of not less 
261.20  than $500. 
261.21     (d) If a single employee is subject to multiple withholding 
261.22  orders or multiple notices of withholding for the support of 
261.23  more than one child, the payor of funds shall comply with all of 
261.24  the orders or notices to the extent that the total amount 
261.25  withheld from the obligor's income does not exceed the limits 
261.26  imposed under the Consumer Credit Protection Act, United States 
261.27  Code, title 15, section 1637(b), giving priority to amounts 
261.28  designated in each order or notice as current support as follows:
261.29     (1) if the total of the amounts designated in the orders 
261.30  for or notices of withholding as current support exceeds the 
261.31  amount available for income withholding, the payor of funds 
261.32  shall allocate to each order or notice an amount for current 
261.33  support equal to the amount designated in that order or notice 
261.34  as current support, divided by the total of the amounts 
261.35  designated in the orders or notices as current support, 
261.36  multiplied by the amount of the income available for income 
262.1   withholding; and 
262.2      (2) if the total of the amounts designated in the orders 
262.3   for or notices of withholding as current support does not exceed 
262.4   the amount available for income withholding, the payor of funds 
262.5   shall pay the amounts designated as current support, and shall 
262.6   allocate to each order or notice an amount for past due support, 
262.7   equal to the amount designated in that order or notice as past 
262.8   due support, divided by the total of the amounts designated in 
262.9   the orders or notices as past due support, multiplied by the 
262.10  amount of income remaining available for income withholding 
262.11  after the payment of current support. 
262.12     (e) When an order for or notice of withholding is in effect 
262.13  and the obligor's employment is terminated, the obligor and the 
262.14  payor of funds shall notify the public authority of the 
262.15  termination within ten days of the termination date.  The 
262.16  termination notice shall include the obligor's home address and 
262.17  the name and address of the obligor's new payor of funds, if 
262.18  known. 
262.19     (f) A payor of funds may deduct one dollar from the 
262.20  obligor's remaining salary for each payment made pursuant to an 
262.21  order for or notice of withholding under this section to cover 
262.22  the expenses of withholding.  
262.23     Subd. 6.  [FINANCIAL INSTITUTIONS.] (a) If income 
262.24  withholding is ineffective due to the obligor's method of 
262.25  obtaining income, the court shall order the obligor to identify 
262.26  a child support deposit account owned solely by the obligor, or 
262.27  to establish an account, in a financial institution located in 
262.28  this state for the purpose of depositing court-ordered child 
262.29  support payments.  The court shall order the obligor to execute 
262.30  an agreement with the appropriate public authority for 
262.31  preauthorized transfers from the obligor's child support account 
262.32  payable to an account of the public authority.  The court shall 
262.33  order the obligor to disclose to the court all deposit accounts 
262.34  owned by the obligor in whole or in part in any financial 
262.35  institution.  The court may order the obligor to disclose to the 
262.36  court the opening or closing of any deposit account owned in 
263.1   whole or in part by the obligor within 30 days of the opening or 
263.2   closing.  The court may order the obligor to execute an 
263.3   agreement with the appropriate public authority for 
263.4   preauthorized transfers from any deposit account owned in whole 
263.5   or in part by the obligor to the obligor's child support deposit 
263.6   account if necessary to satisfy court-ordered child support 
263.7   payments.  The court may order a financial institution to 
263.8   disclose to the court the account number and any other 
263.9   information regarding accounts owned in whole or in part by the 
263.10  obligor.  An obligor who fails to comply with this subdivision, 
263.11  fails to deposit funds in at least one deposit account 
263.12  sufficient to pay court-ordered child support, or stops payment 
263.13  or revokes authorization of any preauthorized transfer is 
263.14  subject to contempt of court procedures under chapter 588. 
263.15     (b) A financial institution shall execute preauthorized 
263.16  transfers for the deposit accounts of the obligor in the amount 
263.17  specified in the order and amounts required under this section 
263.18  as directed by the public authority.  A financial institution is 
263.19  liable to the obligee if funds in any of the obligor's deposit 
263.20  accounts identified in the court order equal the amount stated 
263.21  in the preauthorization agreement but are not transferred by the 
263.22  financial institution in accordance with the agreement. 
263.23     Subd. 7.  [SUBSEQUENT INCOME WITHHOLDING.] (a) This 
263.24  subdivision applies to support orders that do not contain 
263.25  provisions for income withholding. 
263.26     (b) For cases in which the public authority is providing 
263.27  child support enforcement services to the parties, the income 
263.28  withholding under this subdivision shall take effect without 
263.29  prior judicial notice to the obligor and without the need for 
263.30  judicial or administrative hearing.  Withholding shall result 
263.31  when: 
263.32     (1) the obligor requests it in writing to the public 
263.33  authority; 
263.34     (2) the obligor fails to make the payments as required in 
263.35  the support order and is at least 30 days in arrears; 
263.36     (3) the obligee or obligor serves on the public authority a 
264.1   copy of the notice of income withholding, a copy of the court's 
264.2   order, an application, and the fee to use the public authority's 
264.3   collection services; or 
264.4      (4) the public authority commences withholding according to 
264.5   section 518.5512, subdivision 6, paragraph (a), clause (4).  
264.6      (c) For cases in which the public authority is not 
264.7   providing child support services to the parties, income 
264.8   withholding under this subdivision shall take effect when an 
264.9   obligee requests it by making a written motion to the court and 
264.10  the court finds that previous support has not been paid on a 
264.11  timely consistent basis or that the obligor has threatened 
264.12  expressly or otherwise to stop or reduce payments. 
264.13     (d) Within two days after the public authority commences 
264.14  withholding under this subdivision, the public authority shall 
264.15  send to the obligor at the obligor's last known address, notice 
264.16  that withholding has commenced.  The notice shall include the 
264.17  information provided to the payor of funds in the notice of 
264.18  withholding. 
264.19     Subd. 8.  [CONTEST.] (a) The obligor may contest 
264.20  withholding under subdivision 7 on the limited grounds that the 
264.21  withholding or the amount withheld is improper due to mistake of 
264.22  fact.  If the obligor chooses to contest the withholding, the 
264.23  obligor must do so no later than 15 days after the employer 
264.24  commences withholding, by doing all of the following: 
264.25     (1) file a request for contested hearing according to 
264.26  section 518.5511, subdivision 4, and include in the request the 
264.27  alleged mistake of fact; 
264.28     (2) serve a copy of the request for contested hearing upon 
264.29  the public authority and the obligee; and 
264.30     (3) secure a date for the contested hearing no later than 
264.31  45 days after receiving notice that withholding has commenced. 
264.32     (b) The income withholding must remain in place while the 
264.33  obligor contests the withholding. 
264.34     (c) If the court finds that an arrearage of at least 30 
264.35  days existed as of the date of the notice of withholding, the 
264.36  court shall order income withholding to continue.  If the court 
265.1   finds a mistake in the amount of the arrearage to be withheld, 
265.2   the court shall continue the income withholding, but it shall 
265.3   correct the amount of the arrearage to be withheld. 
265.4      Subd. 9.  [PRIORITY.] (a) An order for or notice of 
265.5   withholding under this section or execution or garnishment upon 
265.6   a judgment for child support arrearage or preadjudicated 
265.7   expenses shall have priority over an attachment, execution, 
265.8   garnishment, or wage assignment and shall not be subject to the 
265.9   statutory limitations on amounts levied against the income of 
265.10  the obligor.  Amounts withheld from an employee's income must 
265.11  not exceed the maximum permitted under the Consumer Credit 
265.12  Protection Act, United States Code, title 15, section 1673(b). 
265.13     (b) If more than one order for or notice of withholding 
265.14  exists involving the same obligor and child, the public 
265.15  authority shall enforce the most current order or notice.  An 
265.16  order for or notice of withholding that was previously 
265.17  implemented according to this section shall end as of the date 
265.18  of the most current order.  The public authority shall notify 
265.19  the payor of funds to withhold under the most current 
265.20  withholding order or notice. 
265.21     Subd. 10.  [ARREARAGE ORDER.] (a) This section does not 
265.22  prevent the court from ordering the payor of funds to withhold 
265.23  amounts to satisfy the obligor's previous arrearage in support 
265.24  order payments.  This remedy shall not operate to exclude 
265.25  availability of other remedies to enforce judgments.  The 
265.26  employer or payor of funds shall withhold from the obligor's 
265.27  income an additional amount equal to 20 percent of the monthly 
265.28  child support or maintenance obligation until the arrearage is 
265.29  paid.  
265.30     (b) Notwithstanding any law to the contrary, funds from 
265.31  income sources included in section 518.54, subdivision 6, 
265.32  whether periodic or lump sum, are not exempt from attachment or 
265.33  execution upon a judgment for child support arrearage. 
265.34     (c) Absent an order to the contrary, if an arrearage exists 
265.35  at the time a support order would otherwise terminate, income 
265.36  withholding shall continue in effect or may be implemented in an 
266.1   amount equal to the support order plus an additional 20 percent 
266.2   of the monthly child support obligation, until all arrears have 
266.3   been paid in full. 
266.4      Subd. 11.  [LUMP-SUM PAYMENTS.] Before transmittal to the 
266.5   obligor of a lump-sum payment of $500 or more including, but not 
266.6   limited to, severance pay, accumulated sick pay, vacation pay, 
266.7   bonuses, commissions, or other pay or benefits, a payor of funds:
266.8      (1) who has been served with an order for or notice of 
266.9   income withholding under this section shall: 
266.10     (i) notify the public authority of the lump-sum payment 
266.11  that is to be paid to the obligor; 
266.12     (ii) hold the lump sum payment for 30 days after the date 
266.13  on which the lump sum payment would otherwise have been paid to 
266.14  the obligor, notwithstanding sections 181.08, 181.101, 181.11, 
266.15  181.13, and 181.145; and 
266.16     (iii) upon order of the court, and after a showing of past 
266.17  willful nonpayment of support, pay any specified amount of the 
266.18  lump-sum payment to the public authority for future support; or 
266.19     (2) shall pay the lessor of the amount of the lump-sum 
266.20  payment or the total amount of the judgment and arrearages upon 
266.21  service by United States mail of a sworn affidavit from the 
266.22  public authority or a court order that includes the following 
266.23  information: 
266.24     (i) that a judgment entered pursuant to section 548.091, 
266.25  subdivision 1a, exists against the obligor, or that other 
266.26  support arrearages exist; 
266.27     (ii) the current balance of the judgment or arrearage; and 
266.28     (iii) that a portion of the judgment or arrearage remains 
266.29  unpaid. 
266.30     The Consumer Credit Protection Act, United States Code, 
266.31  title 15, section 1673(b), does not apply to lump-sum payments. 
266.32     Subd. 12.  [INTERSTATE INCOME WITHHOLDING.] (a) Upon 
266.33  receipt of an order for support entered in another state and the 
266.34  specified documentation from an authorized agency, the public 
266.35  authority shall implement income withholding.  A payor of funds 
266.36  in this state shall withhold income under court orders for 
267.1   withholding issued by other states or territories. 
267.2      (b) An employer receiving an income withholding notice from 
267.3   another state shall withhold and distribute the funds as 
267.4   directed in the withholding notice and shall apply the law of 
267.5   the obligor's principal place of employment when determining: 
267.6      (1) the employer's fee for processing an income withholding 
267.7   notice; 
267.8      (2) the maximum amount permitted to be withheld from the 
267.9   obligor's income; and 
267.10     (3) deadlines for implementing and forwarding the child 
267.11  support payment. 
267.12     (c) An obligor may contest withholding under this 
267.13  subdivision pursuant to section 518C.506. 
267.14     Subd. 13.  [ORDER TERMINATING INCOME WITHHOLDING.] An order 
267.15  terminating income withholding must specify the effective date 
267.16  of the order and reference the initial order or decree that 
267.17  establishes the support obligation and shall be entered once the 
267.18  following conditions have been met: 
267.19     (1) the obligor serves written notice of the application 
267.20  for termination of income withholding by mail upon the obligee 
267.21  at the obligee's last known mailing address, and a duplicate 
267.22  copy of the application is served on the public authority; 
267.23     (2) the application for termination of income withholding 
267.24  specifies the event that terminates the support obligation, the 
267.25  effective date of the termination of the support obligation, and 
267.26  the applicable provisions of the order or decree that 
267.27  established the support obligation; 
267.28     (3) the application includes the complete name of the 
267.29  obligor's payor of funds, the business mailing address, the 
267.30  court action and court file number, and the support and 
267.31  collections file number, if known; and 
267.32     (4) after receipt of the application for termination of 
267.33  income withholding, the obligee or the public authority fails 
267.34  within 20 days to request a contested hearing on the issue of 
267.35  whether income withholding of support should continue clearly 
267.36  specifying the basis for the continued support obligation and, 
268.1   ex parte, to stay the service of the order terminating income 
268.2   withholding upon the obligor's payor of funds, pending the 
268.3   outcome of the contest hearing. 
268.4      Subd. 14.  [TERMINATION BY PUBLIC AUTHORITY.] If the public 
268.5   authority determines that income withholding is no longer 
268.6   applicable, the public authority shall notify the obligee and 
268.7   the obligor of intent to terminate income withholding. 
268.8      Five days following notification to the obligee and 
268.9   obligor, the public authority shall issue a notice to the payor 
268.10  of funds terminating income withholding, without a requirement 
268.11  for a court order unless the obligee has requested a contested 
268.12  hearing under section 518.5511, subdivision 4. 
268.13     Subd. 15.  [CONTRACT FOR SERVICE.] To carry out the 
268.14  provisions of this section, the public authority responsible for 
268.15  child support enforcement may contract for services, including 
268.16  the use of electronic funds transfer. 
268.17     Subd. 16.  [WAIVER.] (a) If child support or maintenance is 
268.18  not assigned under section 256.741, the court may waive the 
268.19  requirements of this section if the court finds there is no 
268.20  arrearage in child support and maintenance as of the date of the 
268.21  hearing and: 
268.22     (1) one party demonstrates and the court finds there is 
268.23  good cause to waive the requirements of this section or to 
268.24  terminate an order for or notice of income withholding 
268.25  previously entered under this section; or 
268.26     (2) all parties reach an agreement and the agreement is 
268.27  approved by the court after a finding that the agreement is 
268.28  likely to result in regular and timely payments.  The court's 
268.29  findings waiving the requirements of this paragraph shall 
268.30  include a written explanation of the reasons why income 
268.31  withholding would not be in the best interests of the child. 
268.32     In addition to the other requirements in this subdivision, 
268.33  if the case involves a modification of support, the court shall 
268.34  make a finding that support has been timely made. 
268.35     (b) If the court waives income withholding, the obligee or 
268.36  obligor may at any time request income withholding under 
269.1   subdivision 7. 
269.2      Subd. 17.  [NONLIABILITY; PAYOR OF FUNDS.] A payor of funds 
269.3   who complies with an income withholding order or notice of 
269.4   withholding according to this chapter or chapter 518C that 
269.5   appears regular on its face shall not be subject to civil 
269.6   liability to any individual or agency for taking action in 
269.7   compliance with the order or notice. 
269.8      Subd. 18.  [ELECTRONIC TRANSMISSION.] Orders or notices for 
269.9   withholding under this section may be transmitted for 
269.10  enforcement purposes by electronic means. 
269.11     Sec. 53. Minnesota Statutes 1996, section 518.616, is 
269.12  amended by adding a subdivision to read: 
269.13     Subd. 1a.  [COURT ORDERS FOR CHILDREN RECEIVING PUBLIC 
269.14  ASSISTANCE.] For any order enforced by the public authority for 
269.15  children receiving assistance under any of the programs referred 
269.16  to in section 256.741, subdivision 8, the public authority may 
269.17  seek a court order requiring the obligor to participate in work 
269.18  activities if the obligor is in arrears in child support.  Work 
269.19  activities include the following: 
269.20     (1) unsubsidized employment; 
269.21     (2) subsidized private sector employment; 
269.22     (3) subsidized public sector employment or work experience 
269.23  only if sufficient private sector employment is unavailable; 
269.24     (4) on-the-job training; 
269.25     (5) job search and job readiness; 
269.26     (6) education directly related to employment, in the case 
269.27  of an obligor who: 
269.28     (i) has not attained 20 years of age; and 
269.29     (ii) has not received a high school diploma or certificate 
269.30  of high school equivalency; 
269.31     (7) job skills training directly related to employment; and 
269.32     (8) satisfactory attendance at a secondary school in the 
269.33  case of an obligor who: 
269.34     (i) has not completed secondary school; and 
269.35     (ii) is a dependent child, or a head of a household and who 
269.36  has not attained 20 years of age; and 
270.1      (9) vocational educational training, not to exceed 12 
270.2   months with respect to any individual. 
270.3      Sec. 54.  Minnesota Statutes 1996, section 518.68, 
270.4   subdivision 2, is amended to read: 
270.5      Subd. 2.  [CONTENTS.] The required notices must be 
270.6   substantially as follows: 
270.7                           IMPORTANT NOTICE 
270.8   1.  PAYMENTS TO PUBLIC AGENCY 
270.9      Pursuant According to Minnesota Statutes, section 518.551, 
270.10     subdivision 1, payments ordered for maintenance and support 
270.11     must be paid to the public agency responsible for child 
270.12     support enforcement as long as the person entitled to 
270.13     receive the payments is receiving or has applied for public 
270.14     assistance or has applied for support and maintenance 
270.15     collection services.  MAIL PAYMENTS TO: 
270.16  2.  DEPRIVING ANOTHER OF CUSTODIAL OR PARENTAL RIGHTS -- A 
270.17  FELONY 
270.18     A person may be charged with a felony who conceals a minor 
270.19     child or takes, obtains, retains, or fails to return a 
270.20     minor child from or to the child's parent (or person with 
270.21     custodial or visitation rights), pursuant according to 
270.22     Minnesota Statutes, section 609.26.  A copy of that section 
270.23     is available from any district court clerk. 
270.24  3.  RULES OF SUPPORT, MAINTENANCE, VISITATION 
270.25     (a) Payment of support or spousal maintenance is to be as 
270.26     ordered, and the giving of gifts or making purchases of 
270.27     food, clothing, and the like will not fulfill the 
270.28     obligation. 
270.29     (b) Payment of support must be made as it becomes due, and 
270.30     failure to secure or denial of rights of visitation is NOT 
270.31     an excuse for nonpayment, but the aggrieved party must seek 
270.32     relief through a proper motion filed with the court. 
270.33     (c) Nonpayment of support is not grounds to deny 
270.34     visitation.  The party entitled to receive support may 
270.35     apply for support and collection services, file a contempt 
270.36     motion, or obtain a judgment as provided in Minnesota 
271.1      Statutes, section 548.091.  
271.2      (d) The payment of support or spousal maintenance takes 
271.3      priority over payment of debts and other obligations. 
271.4      (e) A party who accepts additional obligations of support 
271.5      does so with the full knowledge of the party's prior 
271.6      obligation under this proceeding. 
271.7      (f) Child support or maintenance is based on annual income, 
271.8      and it is the responsibility of a person with seasonal 
271.9      employment to budget income so that payments are made 
271.10     throughout the year as ordered. 
271.11     (g) If there is a layoff or a pay reduction, support may be 
271.12     reduced as of the time of the layoff or pay reduction if a 
271.13     motion to reduce the support is served and filed with the 
271.14     court at that time, but any such reduction must be ordered 
271.15     by the court.  The court is not permitted to reduce support 
271.16     retroactively, except as provided in Minnesota Statutes, 
271.17     section 518.64, subdivision 2, paragraph (c).  
271.18  4.  PARENTAL RIGHTS FROM MINNESOTA STATUTES, SECTION 518.17, 
271.19  SUBDIVISION 3 
271.20     Unless otherwise provided by the Court: 
271.21     (a) Each party has the right of access to, and to receive 
271.22     copies of, school, medical, dental, religious training, and 
271.23     other important records and information about the minor 
271.24     children.  Each party has the right of access to 
271.25     information regarding health or dental insurance available 
271.26     to the minor children.  Presentation of a copy of this 
271.27     order to the custodian of a record or other information 
271.28     about the minor children constitutes sufficient 
271.29     authorization for the release of the record or information 
271.30     to the requesting party. 
271.31     (b) Each party shall keep the other informed as to the name 
271.32     and address of the school of attendance of the minor 
271.33     children.  Each party has the right to be informed by 
271.34     school officials about the children's welfare, educational 
271.35     progress and status, and to attend school and parent 
271.36     teacher conferences.  The school is not required to hold a 
272.1      separate conference for each party. 
272.2      (c) In case of an accident or serious illness of a minor 
272.3      child, each party shall notify the other party of the 
272.4      accident or illness, and the name of the health care 
272.5      provider and the place of treatment. 
272.6      (d) Each party has the right of reasonable access and 
272.7      telephone contact with the minor children. 
272.8   5.  WAGE AND INCOME DEDUCTION OF SUPPORT AND MAINTENANCE 
272.9      Child support and/or spousal maintenance may be withheld 
272.10     from income, with or without notice to the person obligated 
272.11     to pay, when the conditions of Minnesota Statutes, sections 
272.12     518.611 and 518.613, have been met.  A copy of those 
272.13     sections is available from any district court clerk. 
272.14  6.  CHANGE OF ADDRESS OR RESIDENCE 
272.15     Unless otherwise ordered, the person responsible to make 
272.16     support or maintenance payments each party shall notify the 
272.17     person entitled to receive the payment other party, the 
272.18     court, and the public authority responsible for collection, 
272.19     if applicable, of a change of address or residence the 
272.20     following information within 60 ten days of the address or 
272.21     residence change any change:  the residential and mailing 
272.22     address, telephone number, driver's license number, social 
272.23     security number, and name, address, and telephone number of 
272.24     the employer. 
272.25  7.  COST OF LIVING INCREASE OF SUPPORT AND MAINTENANCE 
272.26     Child support and/or spousal maintenance may be adjusted 
272.27     every two years based upon a change in the cost of living 
272.28     (using Department of Labor Consumer Price Index .........., 
272.29     unless otherwise specified in this order) when the 
272.30     conditions of Minnesota Statutes, section 518.641, are met. 
272.31     Cost of living increases are compounded.  A copy of 
272.32     Minnesota Statutes, section 518.641, and forms necessary to 
272.33     request or contest a cost of living increase are available 
272.34     from any district court clerk. 
272.35  8.  JUDGMENTS FOR UNPAID SUPPORT 
272.36     If a person fails to make a child support payment, the 
273.1      payment owed becomes a judgment against the person 
273.2      responsible to make the payment by operation of law on or 
273.3      after the date the payment is due, and the person entitled 
273.4      to receive the payment or the public agency may obtain 
273.5      entry and docketing of the judgment WITHOUT NOTICE to the 
273.6      person responsible to make the payment under Minnesota 
273.7      Statutes, section 548.091.  Interest begins to accrue on a 
273.8      payment or installment of child support whenever the unpaid 
273.9      amount due is greater than the current support due, 
273.10     pursuant according to Minnesota Statutes, section 548.091, 
273.11     subdivision 1a.  
273.12  9.  JUDGMENTS FOR UNPAID MAINTENANCE 
273.13     A judgment for unpaid spousal maintenance may be entered 
273.14     when the conditions of Minnesota Statutes, section 548.091, 
273.15     are met.  A copy of that section is available from any 
273.16     district court clerk. 
273.17  10.  ATTORNEY FEES AND COLLECTION COSTS FOR ENFORCEMENT OF CHILD 
273.18  SUPPORT 
273.19     A judgment for attorney fees and other collection costs 
273.20     incurred in enforcing a child support order will be entered 
273.21     against the person responsible to pay support when the 
273.22     conditions of section 518.14, subdivision 2, are met.  A 
273.23     copy of section 518.14 and forms necessary to request or 
273.24     contest these attorney fees and collection costs are 
273.25     available from any district court clerk. 
273.26  11.  VISITATION EXPEDITOR PROCESS 
273.27     On request of either party or on its own motion, the court 
273.28     may appoint a visitation expeditor to resolve visitation 
273.29     disputes under Minnesota Statutes, section 518.1751.  A 
273.30     copy of that section and a description of the expeditor 
273.31     process is available from any district court clerk. 
273.32  12.  VISITATION REMEDIES AND PENALTIES 
273.33     Remedies and penalties for the wrongful denial of 
273.34     visitation rights are available under Minnesota Statutes, 
273.35     section 518.175, subdivision 6.  These include compensatory 
273.36     visitation; civil penalties; bond requirements; contempt; 
274.1      and reversal of custody.  A copy of that subdivision and 
274.2      forms for requesting relief are available from any district 
274.3      court clerk. 
274.4      Sec. 55.  Minnesota Statutes 1996, section 518C.101, is 
274.5   amended to read: 
274.6      518C.101 [DEFINITIONS.] 
274.7      In this chapter: 
274.8      (a) "Child" means an individual, whether over or under the 
274.9   age of majority, who is or is alleged to be owed a duty of 
274.10  support by the individual's parent or who is or is alleged to be 
274.11  the beneficiary of a support order directed to the parent. 
274.12     (b) "Child support order" means a support order for a 
274.13  child, including a child who has attained the age of majority 
274.14  under the law of the issuing state. 
274.15     (c) "Duty of support" means an obligation imposed or 
274.16  imposable by law to provide support for a child, spouse, or 
274.17  former spouse, including an unsatisfied obligation to provide 
274.18  support. 
274.19     (d) "Home state" means the state in which a child lived 
274.20  with a parent or a person acting as parent for at least six 
274.21  consecutive months immediately preceding the time of filing of a 
274.22  petition or comparable pleading for support and, if a child is 
274.23  less than six months old, the state in which the child lived 
274.24  from birth with any of them.  A period of temporary absence of 
274.25  any of them is counted as part of the six-month or other period. 
274.26     (e) "Income" includes earnings or other periodic 
274.27  entitlements to money from any source and any other property 
274.28  subject to withholding for support under the law of this state. 
274.29     (f) "Income-withholding order" means an order or other 
274.30  legal process directed to an obligor's employer or other debtor 
274.31  under section 518.611 or 518.613, to withhold support from the 
274.32  income of the obligor. 
274.33     (g) "Initiating state" means a state in from which a 
274.34  proceeding is forwarded or in which a proceeding is filed for 
274.35  forwarding to a responding state under this chapter or a law or 
274.36  procedure substantially similar to this chapter, the uniform 
275.1   reciprocal enforcement of support act, or the revised uniform 
275.2   reciprocal enforcement of support act is filed for forwarding to 
275.3   a responding state. 
275.4      (h) "Initiating tribunal" means the authorized tribunal in 
275.5   an initiating state. 
275.6      (i) "Issuing state" means the state in which a tribunal 
275.7   issues a support order or renders a judgment determining 
275.8   parentage. 
275.9      (j) "Issuing tribunal" means the tribunal that issues a 
275.10  support order or renders a judgment determining parentage. 
275.11     (k) "Law" includes decisional and statutory law and rules 
275.12  and regulations having the force of law. 
275.13     (l) "Obligee" means: 
275.14     (1) an individual to whom a duty of support is or is 
275.15  alleged to be owed or in whose favor a support order has been 
275.16  issued or a judgment determining parentage has been rendered; 
275.17     (2) a state or political subdivision to which the rights 
275.18  under a duty of support or support order have been assigned or 
275.19  which has independent claims based on financial assistance 
275.20  provided to an individual obligee; or 
275.21     (3) an individual seeking a judgment determining parentage 
275.22  of the individual's child. 
275.23     (m) "Obligor" means an individual, or the estate of a 
275.24  decedent: 
275.25     (1) who owes or is alleged to owe a duty of support; 
275.26     (2) who is alleged but has not been adjudicated to be a 
275.27  parent of a child; or 
275.28     (3) who is liable under a support order. 
275.29     (n) "Petition" means a petition or comparable pleading used 
275.30  pursuant to section 518.5511. 
275.31     (o) "Register" means to file a support order or judgment 
275.32  determining parentage in the office of the court administrator. 
275.33     (p) (o) "Registering tribunal" means a tribunal in which a 
275.34  support order is registered. 
275.35     (q) (p) "Responding state" means a state to in which a 
275.36  proceeding is filed or to which a proceeding is forwarded for 
276.1   filing from an initiating state under this chapter or a law or 
276.2   procedure substantially similar to this chapter, the uniform 
276.3   reciprocal enforcement of support act, or the revised uniform 
276.4   reciprocal enforcement of support act. 
276.5      (r) (q) "Responding tribunal" means the authorized tribunal 
276.6   in a responding state. 
276.7      (s) (r) "Spousal support order" means a support order for a 
276.8   spouse or former spouse of the obligor. 
276.9      (t) (s) "State" means a state of the United States, the 
276.10  District of Columbia, the Commonwealth of Puerto Rico, the 
276.11  United States Virgin Islands, or any territory or insular 
276.12  possession subject to the jurisdiction of the United 
276.13  States.  "State" This term also includes: 
276.14     (1) an Indian tribe; and 
276.15     (2) a foreign jurisdiction that has enacted a law or 
276.16  established procedures for issuance and enforcement of support 
276.17  orders that which are substantially similar to the procedures 
276.18  under this chapter, the Uniform Reciprocal Enforcement of 
276.19  Support Act, or the Revised Uniform Reciprocal Enforcement of 
276.20  Support Act.  
276.21     (u) (t) "Support enforcement agency" means a public 
276.22  official or agency authorized to seek: 
276.23     (1) seek enforcement of support orders or laws relating to 
276.24  the duty of support; 
276.25     (2) seek establishment or modification of child support; 
276.26     (3) seek determination of parentage; or 
276.27     (4) to locate obligors or their assets. 
276.28     (v) (u) "Support order" means a judgment, decree, or order, 
276.29  whether temporary, final, or subject to modification, for the 
276.30  benefit of a child, a spouse, or a former spouse, which provides 
276.31  for monetary support, health care, arrearages, or reimbursement, 
276.32  and may include related costs and fees, interest, income 
276.33  withholding, attorney's fees, and other relief. 
276.34     (w) (v) "Tribunal" means a court, administrative agency, or 
276.35  quasi-judicial entity authorized to establish, enforce, or 
276.36  modify support orders or to determine parentage. 
277.1      Sec. 56.  Minnesota Statutes 1996, section 518C.204, is 
277.2   amended to read: 
277.3      518C.204 [SIMULTANEOUS PROCEEDINGS IN ANOTHER STATE.] 
277.4      (a) A tribunal of this state may exercise jurisdiction to 
277.5   establish a support order if the petition or comparable pleading 
277.6   is filed after a petition or comparable pleading is filed in 
277.7   another state only if: 
277.8      (1) the petition or comparable pleading in this state is 
277.9   filed before the expiration of the time allowed in the other 
277.10  state for filing a responsive pleading challenging the exercise 
277.11  of jurisdiction by the other state; 
277.12     (2) the contesting party timely challenges the exercise of 
277.13  jurisdiction in the other state; and 
277.14     (3) if relevant, this state is the home state of the child. 
277.15     (b) A tribunal of this state may not exercise jurisdiction 
277.16  to establish a support order if the petition or comparable 
277.17  pleading is filed before a petition or comparable pleading is 
277.18  filed in another state if: 
277.19     (1) the petition or comparable pleading in the other state 
277.20  is filed before the expiration of the time allowed in this state 
277.21  for filing a responsive pleading challenging the exercise of 
277.22  jurisdiction by this state; 
277.23     (2) the contesting party timely challenges the exercise of 
277.24  jurisdiction in this state; and 
277.25     (3) if relevant, the other state is the home state of the 
277.26  child. 
277.27     Sec. 57.  Minnesota Statutes 1996, section 518C.205, is 
277.28  amended to read: 
277.29     518C.205 [CONTINUING, EXCLUSIVE JURISDICTION.] 
277.30     (a) A tribunal of this state issuing a support order 
277.31  consistent with the law of this state has continuing, exclusive 
277.32  jurisdiction over a child support order: 
277.33     (1) as long as this state remains the residence of the 
277.34  obligor, the individual obligee, or the child for whose benefit 
277.35  the support order is issued; or 
277.36     (2) until each individual party has all of the parties who 
278.1   are individuals have filed written consent consents with the 
278.2   tribunal of this state for a tribunal of another state to modify 
278.3   the order and assume continuing, exclusive jurisdiction. 
278.4      (b) A tribunal of this state issuing a child support order 
278.5   consistent with the law of this state may not exercise its 
278.6   continuing jurisdiction to modify the order if the order has 
278.7   been modified by a tribunal of another state pursuant according 
278.8   to this section or a law substantially similar to this chapter. 
278.9      (c) If a child support order of this state is modified by a 
278.10  tribunal of another state pursuant according to this section or 
278.11  a law substantially similar to this chapter, a tribunal of this 
278.12  state loses its continuing, exclusive jurisdiction with regard 
278.13  to prospective enforcement of the order issued in this state, 
278.14  and may only: 
278.15     (1) enforce the order that was modified as to amounts 
278.16  accruing before the modification; 
278.17     (2) enforce nonmodifiable aspects of that order; and 
278.18     (3) provide other appropriate relief for violations of that 
278.19  order which occurred before the effective date of the 
278.20  modification. 
278.21     (d) A tribunal of this state shall recognize the 
278.22  continuing, exclusive jurisdiction of a tribunal of another 
278.23  state which has issued a child support order pursuant according 
278.24  to this section or a law substantially similar to this chapter. 
278.25     (e) A temporary support order issued ex parte or pending 
278.26  resolution of a jurisdictional conflict does not create 
278.27  continuing, exclusive jurisdiction in the issuing tribunal. 
278.28     (f) A tribunal of this state issuing a support order 
278.29  consistent with the law of this state has continuing, exclusive 
278.30  jurisdiction over a spousal support order throughout the 
278.31  existence of the support obligation.  A tribunal of this state 
278.32  may not modify a spousal support order issued by a tribunal of 
278.33  another state having continuing, exclusive jurisdiction over 
278.34  that order under the law of that state. 
278.35     Sec. 58.  Minnesota Statutes 1996, section 518C.207, is 
278.36  amended to read: 
279.1      518C.207 [RECOGNITION OF CONTROLLING CHILD SUPPORT 
279.2   ORDERS ORDER.] 
279.3      (a) If a proceeding is brought under this chapter, and one 
279.4   or more child support orders have been issued in this or another 
279.5   state with regard to an obligor and a child, a tribunal of this 
279.6   state shall apply the following rules in determining which order 
279.7   to recognize for purposes of continuing, exclusive jurisdiction: 
279.8      (1) If a proceeding is brought under this chapter and only 
279.9   one tribunal has issued a child support order, the order of that 
279.10  tribunal is controlling and must be recognized. 
279.11     (b) If a proceeding is brought under this chapter, and two 
279.12  or more child support orders have been issued by tribunals of 
279.13  this state or another state with regard to the same obligor and 
279.14  child, a tribunal of this state shall apply the rules in clauses 
279.15  (1) to (3) determining which order to recognize for purposes of 
279.16  continuing, exclusive jurisdiction. 
279.17     (1) If only one of the tribunals would have continuing, 
279.18  exclusive jurisdiction under this chapter, the order of that 
279.19  tribunal is controlling and must be recognized. 
279.20     (2) If two or more than one of the tribunals would have 
279.21  issued child support orders for the same obligor and child, and 
279.22  only one of the tribunals would have continuing, exclusive 
279.23  jurisdiction under this chapter, the order of that tribunal must 
279.24  be recognized continuing, exclusive jurisdiction under this 
279.25  chapter, an order issued by a tribunal in the current home state 
279.26  of the child is controlling and must be recognized, but if an 
279.27  order has not been issued in the current home state of the 
279.28  child, the most recently issued order controls and must be 
279.29  recognized. 
279.30     (3) If two or more none of the tribunals would have issued 
279.31  child support orders for the same obligor and child, and more 
279.32  than one of the tribunals would have continuing, exclusive 
279.33  jurisdiction under this chapter, an order issued by a tribunal 
279.34  in the current home state of the child must be recognized, but 
279.35  if an order has not been issued in the current home state of the 
279.36  child, the order most recently issued must be recognized the 
280.1   tribunal of this state having jurisdiction over the parties 
280.2   shall issue a child support order, which controls and must be 
280.3   recognized. 
280.4      (4) (c) If two or more tribunals have issued child support 
280.5   orders have been issued for the same obligor and child, and none 
280.6   of the tribunals would have continuing, exclusive jurisdiction 
280.7   under this chapter, the tribunal of this state may issue a child 
280.8   support order, which must be recognized and if the obligor or 
280.9   the individual obligee resides in this state, a party may 
280.10  request a tribunal of this state to determine which order is 
280.11  controlling and must be recognized under paragraph (b).  The 
280.12  request must be accompanied by a certified copy of every support 
280.13  order in effect.  The requesting party shall give notice of the 
280.14  request to each party whose rights may be affected by the 
280.15  determination. 
280.16     (b) (d) The tribunal that has issued an the controlling 
280.17  order recognized under paragraph (a), (b), or (c) is the 
280.18  tribunal having that has continuing, exclusive 
280.19  jurisdiction under section 518C.205. 
280.20     (e) A tribunal of this state which determines by order the 
280.21  identity of the controlling order under paragraph (b), clause 
280.22  (1) or (2), or which issues a new controlling order under 
280.23  paragraph (b), clause (3), shall state in that order the basis 
280.24  upon which the tribunal made its determination. 
280.25     (f) Within 30 days after issuance of an order determining 
280.26  the identity of the controlling order, the party obtaining the 
280.27  order shall file a certified copy of the order with each 
280.28  tribunal that issued or registered an earlier order of child 
280.29  support.  A party who obtains the order and fails to file a 
280.30  certified copy is subject to appropriate sanctions by a tribunal 
280.31  in which the issue of failure to file arises.  The failure to 
280.32  file does not affect the validity or enforceability of the 
280.33  controlling order. 
280.34     Sec. 59.  Minnesota Statutes 1996, section 518C.301, is 
280.35  amended to read: 
280.36     518C.301 [PROCEEDINGS UNDER THIS CHAPTER.] 
281.1      (a) Except as otherwise provided in this chapter, sections 
281.2   518C.301 to 518C.319 apply to all proceedings under this chapter.
281.3      (b) This chapter provides for the following proceedings: 
281.4      (1) establishment of an order for spousal support or child 
281.5   support pursuant according to section 518C.401; 
281.6      (2) enforcement of a support order and income-withholding 
281.7   order of another state without registration pursuant according 
281.8   to sections section 518C.501 and 518C.502; 
281.9      (3) registration of an order for spousal support or child 
281.10  support of another state for enforcement pursuant according to 
281.11  sections 518C.601 to 518C.612; 
281.12     (4) modification of an order for child support or spousal 
281.13  support issued by a tribunal of this state pursuant according to 
281.14  sections 518C.203 to 518C.206; 
281.15     (5) registration of an order for child support of another 
281.16  state for modification pursuant according to sections 518C.601 
281.17  to 518C.612; 
281.18     (6) determination of parentage pursuant according to 
281.19  section 518C.701; and 
281.20     (7) assertion of jurisdiction over nonresidents pursuant 
281.21  according to sections 518C.201 and 518C.202. 
281.22     (c) An individual petitioner or a support enforcement 
281.23  agency may commence a proceeding authorized under this chapter 
281.24  by filing a petition in an initiating tribunal for forwarding to 
281.25  a responding tribunal or by filing a petition or a comparable 
281.26  pleading directly in a tribunal of another state which has or 
281.27  can obtain personal jurisdiction over the respondent. 
281.28     Sec. 60.  Minnesota Statutes 1996, section 518C.304, is 
281.29  amended to read: 
281.30     518C.304 [DUTIES OF INITIATING TRIBUNAL.] 
281.31     (a) Upon the filing of a petition authorized by this 
281.32  chapter, an initiating tribunal of this state shall forward 
281.33  three copies of the petition and its accompanying documents: 
281.34     (1) to the responding tribunal or appropriate support 
281.35  enforcement agency in the responding state; or 
281.36     (2) if the identity of the responding tribunal is unknown, 
282.1   to the state information agency of the responding state with a 
282.2   request that they be forwarded to the appropriate tribunal and 
282.3   that receipt be acknowledged. 
282.4      (b) If a responding state has not enacted the language in 
282.5   this chapter or a law or procedure substantially similar to this 
282.6   chapter, a tribunal of this state may issue a certificate or 
282.7   other document and make a finding required by the law of the 
282.8   responding state.  If the responding state is a foreign 
282.9   jurisdiction, the tribunal may specify the amount of support 
282.10  sought and provide other documents necessary to satisfy the 
282.11  requirements of the responding state. 
282.12     Sec. 61.  Minnesota Statutes 1996, section 518C.305, is 
282.13  amended to read: 
282.14     518C.305 [DUTIES AND POWERS OF RESPONDING TRIBUNAL.] 
282.15     (a) When a responding tribunal of this state receives a 
282.16  petition or comparable pleading from an initiating tribunal or 
282.17  directly pursuant according to section 518C.301, paragraph (c), 
282.18  it shall cause the petition or pleading to be filed and notify 
282.19  the petitioner by first class mail where and when it was filed. 
282.20     (b) A responding tribunal of this state, to the extent 
282.21  otherwise authorized by law, may do one or more of the following:
282.22     (1) issue or enforce a support order, modify a child 
282.23  support order, or render a judgment to determine parentage; 
282.24     (2) order an obligor to comply with a support order, 
282.25  specifying the amount and the manner of compliance; 
282.26     (3) order income withholding; 
282.27     (4) determine the amount of any arrearages, and specify a 
282.28  method of payment; 
282.29     (5) enforce orders by civil or criminal contempt, or both; 
282.30     (6) set aside property for satisfaction of the support 
282.31  order; 
282.32     (7) place liens and order execution on the obligor's 
282.33  property; 
282.34     (8) order an obligor to keep the tribunal informed of the 
282.35  obligor's current residential address, telephone number, 
282.36  employer, address of employment, and telephone number at the 
283.1   place of employment; 
283.2      (9) issue a bench warrant for an obligor who has failed 
283.3   after proper notice to appear at a hearing ordered by the 
283.4   tribunal and enter the bench warrant in any local and state 
283.5   computer systems for criminal warrants; 
283.6      (10) order the obligor to seek appropriate employment by 
283.7   specified methods; 
283.8      (11) award reasonable attorney's fees and other fees and 
283.9   costs; and 
283.10     (12) grant any other available remedy. 
283.11     (c) A responding tribunal of this state shall include in a 
283.12  support order issued under this chapter, or in the documents 
283.13  accompanying the order, the calculations on which the support 
283.14  order is based. 
283.15     (d) A responding tribunal of this state may not condition 
283.16  the payment of a support order issued under this chapter upon 
283.17  compliance by a party with provisions for visitation. 
283.18     (e) If a responding tribunal of this state issues an order 
283.19  under this chapter, the tribunal shall send a copy of the order 
283.20  by first class mail to the petitioner and the respondent and to 
283.21  the initiating tribunal, if any. 
283.22     Sec. 62.  Minnesota Statutes 1996, section 518C.310, is 
283.23  amended to read: 
283.24     518C.310 [DUTIES OF STATE INFORMATION AGENCY.] 
283.25     (a) The unit within the department of human services that 
283.26  receives and disseminates incoming interstate actions under 
283.27  title IV-D of the Social Security Act from section 518C.02, 
283.28  subdivision 1a, is the state information agency under this 
283.29  chapter. 
283.30     (b) The state information agency shall: 
283.31     (1) compile and maintain a current list, including 
283.32  addresses, of the tribunals in this state which have 
283.33  jurisdiction under this chapter and any support enforcement 
283.34  agencies in this state and transmit a copy to the state 
283.35  information agency of every other state; 
283.36     (2) maintain a register of tribunals and support 
284.1   enforcement agencies received from other states; 
284.2      (3) forward to the appropriate tribunal in the place in 
284.3   this state in which the individual obligee or the obligor 
284.4   resides, or in which the obligor's property is believed to be 
284.5   located, all documents concerning a proceeding under this 
284.6   chapter received from an initiating tribunal or the state 
284.7   information agency of the initiating state; and 
284.8      (4) obtain information concerning the location of the 
284.9   obligor and the obligor's property within this state not exempt 
284.10  from execution, by such means as postal verification and federal 
284.11  or state locator services, examination of telephone directories, 
284.12  requests for the obligor's address from employers, and 
284.13  examination of governmental records, including, to the extent 
284.14  not prohibited by other law, those relating to real property, 
284.15  vital statistics, law enforcement, taxation, motor vehicles, 
284.16  driver's licenses, and social security; and 
284.17     (5) determine which foreign jurisdictions and Indian tribes 
284.18  have substantially similar procedures for issuance and 
284.19  enforcement of support orders.  The state information agency 
284.20  shall compile and maintain a list, including addresses, of all 
284.21  these foreign jurisdictions and Indian tribes.  The state 
284.22  information agency shall make this list available to all state 
284.23  tribunals and all support enforcement agencies. 
284.24     Sec. 63.  Minnesota Statutes 1996, section 518C.401, is 
284.25  amended to read: 
284.26     518C.401 [PETITION TO ESTABLISH SUPPORT ORDER.] 
284.27     (a) If a support order entitled to recognition under this 
284.28  chapter has not been issued, a responding tribunal of this state 
284.29  may issue a support order if: 
284.30     (1) the individual seeking the order resides in another 
284.31  state; or 
284.32     (2) the support enforcement agency seeking the order is 
284.33  located in another state. 
284.34     (b) The tribunal may issue a temporary child support order 
284.35  if: 
284.36     (1) the respondent has signed a verified statement 
285.1   acknowledging parentage; 
285.2      (2) the respondent has been determined by or pursuant to 
285.3   law to be the parent; or 
285.4      (3) there is other clear and convincing evidence that the 
285.5   respondent is the child's parent. 
285.6      (c) Upon a finding, after notice and opportunity to be 
285.7   heard, that an obligor owes a duty of support, the tribunal 
285.8   shall issue a support order directed to the obligor and may 
285.9   issue other orders pursuant according to section 518C.305. 
285.10     Sec. 64.  Minnesota Statutes 1996, section 518C.501, is 
285.11  amended to read: 
285.12     518C.501 [RECOGNITION EMPLOYER'S RECEIPT OF 
285.13  INCOME-WITHHOLDING ORDER OF ANOTHER STATE.] 
285.14     (a) An income-withholding order issued in another state may 
285.15  be sent by first class mail to the person or entity defined as 
285.16  the obligor's employer under section 518.611 or 518.613 without 
285.17  first filing a petition or comparable pleading or registering 
285.18  the order with a tribunal of this state.  Upon receipt of the 
285.19  order, the employer shall: 
285.20     (1) treat an income-withholding order issued in another 
285.21  state which appears regular on its face as if it had been issued 
285.22  by a tribunal of this state; 
285.23     (2) immediately provide a copy of the order to the obligor; 
285.24  and 
285.25     (3) distribute the funds as directed in the withholding 
285.26  order. 
285.27     (b) An obligor may contest the validity or enforcement of 
285.28  an income-withholding order issued in another state in the same 
285.29  manner as if the order had been issued by a tribunal of this 
285.30  state.  Section 518C.604 applies to the contest.  The obligor 
285.31  shall give notice of the contest to any support enforcement 
285.32  agency providing services to the obligee and to: 
285.33     (1) the person or agency designated to receive payments in 
285.34  the income-withholding order; or 
285.35     (2) if no person or agency is designated, the obligee. 
285.36     Sec. 65.  [518C.503] [EMPLOYER'S COMPLIANCE WITH 
286.1   INCOME-WITHHOLDING ORDER OF ANOTHER STATE.] 
286.2      (a) Upon receipt of an income-withholding order, the 
286.3   obligor's employer shall immediately provide a copy of the order 
286.4   to the obligor.  
286.5      (b) The employer shall treat an income-withholding order 
286.6   issued in another state which appears regular on its face as if 
286.7   it had been issued by a tribunal of this state. 
286.8      (c) Except as otherwise provided in paragraph (d) and 
286.9   section 518C.505, the employer shall withhold and distribute the 
286.10  funds specified in the withholding order by complying with the 
286.11  terms of the order which specify: 
286.12     (1) the duration and amount of periodic payments of current 
286.13  child support, stated as a sum certain; 
286.14     (2) the person or agency designated to receive payments and 
286.15  the address to which the payments are to be forwarded; 
286.16     (3) medical support, whether in the form of periodic cash 
286.17  payment, stated as a sum certain, or ordering the obligor to 
286.18  provide health insurance coverage for the child under a policy 
286.19  available through the obligor's employment; 
286.20     (4) the amount of periodic payments of fees and costs for a 
286.21  support enforcement agency, the issuing tribunal, and the 
286.22  obligee's attorney, stated as sums certain; and 
286.23     (5) the amount of periodic payments of arrearages and 
286.24  interest on arrearages, stated as sums certain. 
286.25     (d) An employer shall comply with the laws of the state of 
286.26  the obligor's principal place of employment for withholding from 
286.27  income with respect to: 
286.28     (1) the employer's fee for processing an income-withholding 
286.29  order; 
286.30     (2) the maximum amount permitted to be withheld from the 
286.31  obligor's income; and 
286.32     (3) the times within which the employer must implement the 
286.33  withholding order and forward the child support payment. 
286.34     Sec. 66.  [518C.504] [COMPLIANCE WITH MULTIPLE 
286.35  INCOME-WITHHOLDING ORDERS.] 
286.36     If an obligor's employer receives multiple 
287.1   income-withholding orders with respect to the earnings of the 
287.2   same obligor, the employer satisfies the terms of the multiple 
287.3   orders if the employer complies with the law of the state of the 
287.4   obligor's principal place of employment to establish the 
287.5   priorities for withholding and allocating income withheld for 
287.6   multiple child support obligees.  
287.7      Sec. 67.  [518C.505] [IMMUNITY FROM CIVIL LIABILITY.] 
287.8      An employer who complies with an income-withholding order 
287.9   issued in another state according to this chapter is not subject 
287.10  to civil liability to an individual or agency with regard to the 
287.11  employer's withholding of child support from the obligor's 
287.12  income. 
287.13     Sec. 68.  [518C.506] [PENALTIES FOR NONCOMPLIANCE.] 
287.14     An employer who willfully fails to comply with an 
287.15  income-withholding order issued by another state and received 
287.16  for enforcement is subject to the same penalties that may be 
287.17  imposed for noncompliance with an order issued by a tribunal of 
287.18  this state. 
287.19     Sec. 69.  [518C.507] [CONTEST BY OBLIGOR.] 
287.20     (a) An obligor may contest the validity or enforcement of 
287.21  an income-withholding order issued in another state and received 
287.22  directly by an employer in this state in the same manner as if 
287.23  the order had been issued by a tribunal of this state.  Section 
287.24  518C.604 applies to the contested order. 
287.25     (b) The obligor shall give notice of the contested order to:
287.26     (1) a support enforcement agency providing services to the 
287.27  obligee; 
287.28     (2) each employer that has directly received an 
287.29  income-withholding order; and 
287.30     (3) the person or agency designated to receive payments in 
287.31  the income-withholding order or if no person or agency is 
287.32  designated, to the obligee. 
287.33     Sec. 70.  [518C.508] [ADMINISTRATIVE ENFORCEMENT OF 
287.34  ORDERS.] 
287.35     (a) A party seeking to enforce a support order or an 
287.36  income-withholding order, or both, issued by a tribunal of 
288.1   another state may send the documents required for registering 
288.2   the order to a support enforcement agency of this state. 
288.3      (b) Upon receipt of the documents, the support enforcement 
288.4   agency, without initially seeking to register the order, shall 
288.5   consider and may use any administrative procedure authorized by 
288.6   the laws of this state to enforce a support order or an 
288.7   income-withholding order, or both.  If the obligor does not 
288.8   contest administrative enforcement, the order need not be 
288.9   registered.  If the obligor contests the validity or 
288.10  administrative enforcement of the order, the support enforcement 
288.11  agency shall register the order under this chapter. 
288.12     Sec. 71.  Minnesota Statutes 1996, section 518C.603, is 
288.13  amended to read: 
288.14     518C.603 [EFFECT OF REGISTRATION FOR ENFORCEMENT.] 
288.15     (a) A support order or income-withholding order issued in 
288.16  another state is registered when the order is filed in the 
288.17  registering tribunal of this state. 
288.18     (b) A registered order issued in another state is 
288.19  enforceable in the same manner and is subject to the same 
288.20  procedures as an order issued by a tribunal of this state. 
288.21     (c) Except as otherwise provided in sections 518C.601 to 
288.22  518C.612 this chapter, a tribunal of this state shall recognize 
288.23  and enforce, but may not modify, a registered order if the 
288.24  issuing tribunal had jurisdiction. 
288.25     Sec. 72.  Minnesota Statutes 1996, section 518C.605, is 
288.26  amended to read: 
288.27     518C.605 [NOTICE OF REGISTRATION OF ORDER.] 
288.28     (a) When a support order or income-withholding order issued 
288.29  in another state is registered, the registering tribunal shall 
288.30  notify the nonregistering party.  Notice must be given by 
288.31  certified or registered mail or by any means of personal service 
288.32  authorized by the law of this state.  The notice must be 
288.33  accompanied by a copy of the registered order and the documents 
288.34  and relevant information accompanying the order. 
288.35     (b) The notice must inform the nonregistering party: 
288.36     (1) that a registered order is enforceable as of the date 
289.1   of registration in the same manner as an order issued by a 
289.2   tribunal of this state; 
289.3      (2) that a hearing to contest the validity or enforcement 
289.4   of the registered order must be requested within 20 days after 
289.5   the date of mailing or personal service of the notice; 
289.6      (3) that failure to contest the validity or enforcement of 
289.7   the registered order in a timely manner will result in 
289.8   confirmation of the order and enforcement of the order and the 
289.9   alleged arrearages and precludes further contest of that order 
289.10  with respect to any matter that could have been asserted; and 
289.11     (4) of the amount of any alleged arrearages. 
289.12     (c) Upon registration of an income-withholding order for 
289.13  enforcement, the registering tribunal shall notify the obligor's 
289.14  employer pursuant according to section 518.611 or 518.613. 
289.15     Sec. 73.  Minnesota Statutes 1996, section 518C.608, is 
289.16  amended to read: 
289.17     518C.608 [CONFIRMED ORDER.] 
289.18     If a contesting party has received notice of registration 
289.19  under section 518C.605, Confirmation of a registered order, 
289.20  whether by operation of law or after notice and hearing, 
289.21  precludes further contest of the order based upon facts that 
289.22  were known by the contesting party at the time of registration 
289.23  with respect to any matter that could have been asserted at the 
289.24  time of registration with respect to any matter that could have 
289.25  been asserted at the time of registration. 
289.26     Sec. 74.  Minnesota Statutes 1996, section 518C.611, is 
289.27  amended to read: 
289.28     518C.611 [MODIFICATION OF CHILD SUPPORT ORDER OF ANOTHER 
289.29  STATE.] 
289.30     (a) After a child support order issued in another state has 
289.31  been registered in this state, the responding tribunal of this 
289.32  state may modify that order only if, section 518C.613 does not 
289.33  apply and after notice and hearing, it finds that: 
289.34     (1) the following requirements are met: 
289.35     (i) the child, the individual obligee, and the obligor do 
289.36  not reside in the issuing state; 
290.1      (ii) a petitioner who is a nonresident of this state seeks 
290.2   modification; and 
290.3      (iii) the respondent is subject to the personal 
290.4   jurisdiction of the tribunal of this state; or 
290.5      (2) an individual party or the child, or a party who is an 
290.6   individual, is subject to the personal jurisdiction of the 
290.7   tribunal of this state and all of the individual parties who are 
290.8   individuals have filed a written consent consents in the issuing 
290.9   tribunal providing that for a tribunal of this state may to 
290.10  modify the support order and assume continuing, exclusive 
290.11  jurisdiction over the order.  However, if the issuing state is a 
290.12  foreign jurisdiction that has not enacted a law or established 
290.13  procedures substantially similar to the procedures in this 
290.14  chapter, the consent otherwise required of an individual 
290.15  residing in this state is not required for the tribunal to 
290.16  assume jurisdiction to modify the child support order.  
290.17     (b) Modification of a registered child support order is 
290.18  subject to the same requirements, procedures, and defenses that 
290.19  apply to the modification of an order issued by a tribunal of 
290.20  this state and the order may be enforced and satisfied in the 
290.21  same manner. 
290.22     (c) A tribunal of this state may not modify any aspect of a 
290.23  child support order that may not be modified under the law of 
290.24  the issuing state.  If two or more tribunals have issued child 
290.25  support orders for the same obligor and child, the order that 
290.26  controls and must be recognized under section 518C.207 
290.27  establishes the aspects of the support order which are 
290.28  nonmodifiable. 
290.29     (d) On issuance of an order modifying a child support order 
290.30  issued in another state, a tribunal of this state becomes the 
290.31  tribunal of continuing, exclusive jurisdiction. 
290.32     (e) Within 30 days after issuance of a modified child 
290.33  support order, the party obtaining the modification shall file a 
290.34  certified copy of the order with the issuing tribunal which had 
290.35  continuing, exclusive jurisdiction over the earlier order, and 
290.36  in each tribunal in which the party knows that earlier order has 
291.1   been registered. 
291.2      Sec. 75.  Minnesota Statutes 1996, section 518C.612, is 
291.3   amended to read: 
291.4      518C.612 [RECOGNITION OF ORDER MODIFIED IN ANOTHER STATE.] 
291.5      A tribunal of this state shall recognize a modification of 
291.6   its earlier child support order by a tribunal of another state 
291.7   which assumed jurisdiction pursuant according to this chapter or 
291.8   a law substantially similar to this chapter and, upon request, 
291.9   except as otherwise provided in this chapter, shall: 
291.10     (1) enforce the order that was modified only as to amounts 
291.11  accruing before the modification; 
291.12     (2) enforce only nonmodifiable aspects of that order; 
291.13     (3) provide other appropriate relief only for violations of 
291.14  that order which occurred before the effective date of the 
291.15  modification; and 
291.16     (4) recognize the modifying order of the other state, upon 
291.17  registration, for the purpose of enforcement. 
291.18     Sec. 76.  [518C.613] [JURISDICTION TO MODIFY CHILD SUPPORT 
291.19  ORDER OF ANOTHER STATE WHEN INDIVIDUAL PARTIES RESIDE IN THIS 
291.20  STATE.] 
291.21     (a) If all of the parties who are individuals reside in 
291.22  this state and the child does not reside in the issuing state, a 
291.23  tribunal of this state has jurisdiction to enforce and to modify 
291.24  the issuing state's child support order in a proceeding to 
291.25  register that order. 
291.26     (b) A tribunal of this state exercising jurisdiction under 
291.27  this section shall apply the provisions of sections 518C.101 to 
291.28  518C.209, and the procedural and substantive laws of this state 
291.29  to the proceeding for enforcement or modification.  Sections 
291.30  518C.301 to 518C.508 and sections 518C.701 to 518C.802 do not 
291.31  apply. 
291.32     Sec. 77.  [518C.614] [NOTICE TO ISSUING TRIBUNAL OF 
291.33  MODIFICATION.] 
291.34     Within 30 days after issuance of a modified child support 
291.35  order, the party obtaining the modification shall file a 
291.36  certified copy of the order with the issuing tribunal that had 
292.1   continuing, exclusive jurisdiction over the earlier order, and 
292.2   in each tribunal in which the party knows the earlier order has 
292.3   been registered.  A party who obtains the order and fails to 
292.4   file a certified copy is subject to appropriate sanctions by a 
292.5   tribunal in which the issue of failure to file arises.  The 
292.6   failure to file does not affect the validity or enforceability 
292.7   of the modified order of the new tribunal having continuing, 
292.8   exclusive jurisdiction. 
292.9      Sec. 78.  Minnesota Statutes 1996, section 518C.701, is 
292.10  amended to read: 
292.11     518C.701 [PROCEEDING TO DETERMINE PARENTAGE.] 
292.12     (a) A tribunal of this state may serve as an initiating or 
292.13  responding tribunal in a proceeding brought under this chapter 
292.14  or a law or procedure substantially similar to this chapter, or 
292.15  under a law or procedure substantially similar to the uniform 
292.16  reciprocal enforcement of support act, or the revised uniform 
292.17  reciprocal enforcement of support act to determine that the 
292.18  petitioner is a parent of a particular child or to determine 
292.19  that a respondent is a parent of that child. 
292.20     (b) In a proceeding to determine parentage, a responding 
292.21  tribunal of this state shall apply the parentage act, sections 
292.22  257.51 to 257.74, and the rules of this state on choice of law. 
292.23     Sec. 79.  Minnesota Statutes 1996, section 548.091, 
292.24  subdivision 1a, is amended to read: 
292.25     Subd. 1a.  [CHILD SUPPORT JUDGMENT BY OPERATION OF LAW.] 
292.26  (a) Any payment or installment of support required by a judgment 
292.27  or decree of dissolution or legal separation, determination of 
292.28  parentage, an order under chapter 518C, an order under section 
292.29  256.87, or an order under section 260.251, that is not paid or 
292.30  withheld from the obligor's income as required under section 
292.31  518.611 or 518.613, or which is ordered as child support by 
292.32  judgment, decree, or order by a court in any other state, is a 
292.33  judgment by operation of law on and after the date it is due and 
292.34  is entitled to full faith and credit in this state and any other 
292.35  state.  Except as otherwise provided by paragraph (b), interest 
292.36  accrues from the date the unpaid amount due is greater than the 
293.1   current support due at the annual rate provided in section 
293.2   549.09, subdivision 1, plus two percent, not to exceed an annual 
293.3   rate of 18 percent.  A payment or installment of support that 
293.4   becomes a judgment by operation of law between the date on which 
293.5   a party served notice of a motion for modification under section 
293.6   518.64, subdivision 2, and the date of the court's order on 
293.7   modification may be modified under that subdivision. 
293.8      (b) Notwithstanding the provisions of section 549.09, upon 
293.9   motion to the court and upon proof by the obligor of 36 
293.10  consecutive months of complete and timely payments of both 
293.11  current support and court-ordered paybacks of a child support 
293.12  debt or arrearage, the court may order interest on the remaining 
293.13  debt or arrearage to stop accruing.  Timely payments are those 
293.14  made in the month in which they are due.  If, after that time, 
293.15  the obligor fails to make complete and timely payments of both 
293.16  current support and court-ordered paybacks of child support debt 
293.17  or arrearage, the public authority or the obligee may move the 
293.18  court for the reinstatement of interest as of the month in which 
293.19  the obligor ceased making complete and timely payments. 
293.20     The court shall provide copies of all orders issued under 
293.21  this section to the public authority.  The commissioner of human 
293.22  services shall prepare and make available to the court and the 
293.23  parties forms to be submitted by the parties in support of a 
293.24  motion under this paragraph. 
293.25     Sec. 80.  Minnesota Statutes 1996, section 548.091, 
293.26  subdivision 2a, is amended to read: 
293.27     Subd. 2a.  [DOCKETING OF CHILD SUPPORT JUDGMENT.] On or 
293.28  after the date an unpaid amount becomes a judgment by operation 
293.29  of law under subdivision 1a, the obligee or the public authority 
293.30  may file with the court administrator, either electronically or 
293.31  by other means: 
293.32     (1) a statement identifying, or a copy of, the judgment or 
293.33  decree of dissolution or legal separation, determination of 
293.34  parentage, order under chapter 518C, an order under section 
293.35  256.87, or an order under section 260.251, or judgment, decree, 
293.36  or order for child support by a court in any other state, which 
294.1   provides for installment or periodic payments installments of 
294.2   child support, or a judgment or notice of attorney fees and 
294.3   collection costs under section 518.14, subdivision 2; 
294.4      (2) an affidavit of default.  The affidavit of default must 
294.5   state the full name, occupation, place of residence, and last 
294.6   known post office address of the obligor, the name and post 
294.7   office address of the obligee, the date or dates payment was due 
294.8   and not received and judgment was obtained by operation of law, 
294.9   and the total amount of the judgments to the date of filing, and 
294.10  the amount and frequency of the periodic installments of child 
294.11  support that will continue to become due and payable subsequent 
294.12  to the date of filing; and 
294.13     (3) an affidavit of service of a notice of entry of 
294.14  judgment or notice of intent to docket judgment and to recover 
294.15  attorney fees and collection costs on the obligor, in person or 
294.16  by mail at the obligor's last known post office address.  
294.17  Service is completed upon mailing in the manner designated. 
294.18  Where applicable, a notice of interstate lien in the form 
294.19  promulgated under United States Code, title 42, section 652(a), 
294.20  is sufficient to satisfy the requirements of clauses (1) and (2).
294.21     Sec. 81.  Minnesota Statutes 1996, section 548.091, 
294.22  subdivision 3a, is amended to read: 
294.23     Subd. 3a.  [ENTRY, DOCKETING, AND SURVIVAL OF CHILD SUPPORT 
294.24  JUDGMENT.] Upon receipt of the documents filed under subdivision 
294.25  2a, the court administrator shall enter and docket the judgment 
294.26  in the amount of the default specified in the affidavit of 
294.27  default unpaid obligation identified in the affidavit of default 
294.28  and note the amount and frequency of the periodic installments 
294.29  of child support that will continue to become due and payable 
294.30  after the date of docketing.  From the time of docketing, the 
294.31  judgment is a lien upon all the real property in the county 
294.32  owned by the judgment debtor, but it is not a lien on registered 
294.33  land unless the obligee or the public authority causes a notice 
294.34  of judgment lien or certified copy of the judgment to be 
294.35  memorialized on the certificate of title or certificate of 
294.36  possessory title under section 508.63 or 508A.63.  The judgment 
295.1   survives and the lien continues for ten years after the date the 
295.2   judgment was docketed.  Child support judgments may be renewed 
295.3   by service of notice upon the debtor.  Service shall be by 
295.4   certified mail at the last known address of the debtor or in the 
295.5   manner provided for the service of civil process.  Upon the 
295.6   filing of the notice and proof of service the court 
295.7   administrator shall renew the judgment for child support without 
295.8   any additional filing fee. 
295.9      Sec. 82.  Minnesota Statutes 1996, section 548.091, is 
295.10  amended by adding a subdivision to read: 
295.11     Subd. 5.  [AUTOMATIC INCREASES; SATISFACTION.] After 
295.12  docketing and until satisfied by the obligee, public authority, 
295.13  or the court administrator, the amount of the docketed judgment 
295.14  automatically increases by the total amount of periodic 
295.15  installments of child support that became due and payable 
295.16  subsequent to the date of docketing, plus attorney's fees and 
295.17  collection costs incurred by the public authority, and less any 
295.18  payment made by the obligor to partially satisfy the docketed 
295.19  judgment.  The court administrator shall not satisfy any child 
295.20  support judgment without first obtaining a written judgment 
295.21  payoff statement from the public authority or obligee.  If no 
295.22  such statement can be obtained within two business days, the 
295.23  court administrator shall only satisfy the judgment if the 
295.24  amount paid to the court administrator equals the judgment 
295.25  amount plus interest and costs, and the amount of the periodic 
295.26  installment times the number of payments due since the date of 
295.27  docketing of the judgment.  
295.28     Sec. 83.  Minnesota Statutes 1996, section 548.091, is 
295.29  amended by adding a subdivision to read: 
295.30     Subd. 6.  [NOTE ON JUDGMENT ROLL.] The court administrator 
295.31  shall note on the judgment roll which judgments are filed 
295.32  pursuant to this section and the amount and frequency of the 
295.33  periodic installment of child support that will continue to 
295.34  become due and payable after the date of docketing.  
295.35     Sec. 84.  Minnesota Statutes 1996, section 548.091, is 
295.36  amended by adding a subdivision to read: 
296.1      Subd. 7.  [FEES.] The public authority is exempt from 
296.2   payment of fees when a judgment is docketed or a certified copy 
296.3   of a judgment is issued by a court administrator, or a notice of 
296.4   judgment lien or a certified copy of a judgment is presented to 
296.5   a registrar of titles for recording.  If a notice or certified 
296.6   copy is recorded by the public authority under this subdivision, 
296.7   the registrar of titles may collect from a party presenting for 
296.8   recording a satisfaction or release of the notice or certified 
296.9   copy, the fees for recording and memorializing both the notice 
296.10  or certified copy and the satisfaction or release. 
296.11     Sec. 85.  Minnesota Statutes 1996, section 548.091, is 
296.12  amended by adding a subdivision to read: 
296.13     Subd. 8.  [REGISTERED LAND.] If requested by the public 
296.14  authority and upon the public authority's providing a notice of 
296.15  judgment lien or a certified copy of a judgment for child 
296.16  support debt, together with a street address, tax parcel 
296.17  identifying number, or a legal description for a parcel of real 
296.18  property, the county recorder shall search the registered land 
296.19  records in that county and cause the notice of judgment lien or 
296.20  certified copy of the judgment to be memorialized on every 
296.21  certificate of title or certificate of possessory title of 
296.22  registered land in that county that can be reasonably identified 
296.23  as owned by the obligor who is named on a docketed judgment.  
296.24  The fees for memorializing the lien or judgment must be paid in 
296.25  the manner prescribed by subdivision 7.  The county recorders 
296.26  and their employees and agents are not liable for any loss or 
296.27  damages arising from failure to identify a parcel of registered 
296.28  land owned by the obligor who is named on the docketed judgment. 
296.29     Sec. 86.  Minnesota Statutes 1996, section 548.091, is 
296.30  amended by adding a subdivision to read: 
296.31     Subd. 9.  [PAYOFF STATEMENT.] The public authority shall 
296.32  issue to the obligor, attorneys, lenders, and closers, or their 
296.33  agents, a payoff statement setting forth conclusively the amount 
296.34  necessary to satisfy the lien.  Payoff statements must be issued 
296.35  within three business days after receipt of a request by mail, 
296.36  personal delivery, telefacsimile, or e-mail transmission, and 
297.1   must be delivered to the requester by telefacsimile or e-mail 
297.2   transmission if requested and if appropriate technology is 
297.3   available to the public authority. 
297.4      Sec. 87.  Minnesota Statutes 1996, section 548.091, is 
297.5   amended by adding a subdivision to read: 
297.6      Subd. 10.  [RELEASE OF LIEN.] Upon payment of the amount 
297.7   due under subdivision 5, the public authority shall execute and 
297.8   deliver a satisfaction of the judgment lien within five business 
297.9   days. 
297.10     Sec. 88.  Minnesota Statutes 1996, section 548.091, is 
297.11  amended by adding a subdivision to read: 
297.12     Subd. 11.  [SPECIAL PROCEDURES.] The public authority shall 
297.13  maintain sufficient staff available to negotiate a release of 
297.14  lien on specific property for less than the full amount due 
297.15  where the proceeds of a sale or financing, less reasonable and 
297.16  necessary closing expenses, are not sufficient to satisfy all 
297.17  encumbrances on the liened property.  Partial releases do not 
297.18  release the obligor's personal liability for the amount unpaid. 
297.19     Sec. 89.  Minnesota Statutes 1996, section 548.091, is 
297.20  amended by adding a subdivision to read: 
297.21     Subd. 12.  [CORRECTING ERRORS.] The public authority shall 
297.22  maintain a process to review the identity of the obligor and to 
297.23  issue releases of lien in cases of misidentification.  The 
297.24  public authority shall maintain a process to review the amount 
297.25  of child support determined to be delinquent and to issue 
297.26  amended notices of judgment lien in cases of incorrectly 
297.27  docketed judgments. 
297.28     Sec. 90.  Minnesota Statutes 1996, section 548.091, is 
297.29  amended by adding a subdivision to read: 
297.30     Subd. 13.  [FORMS.] The department of human services, after 
297.31  consultation with registrars of title, shall prescribe the 
297.32  Notice of Judgment Lien.  These forms are not subject to chapter 
297.33  14. 
297.34     Sec. 91.  Minnesota Statutes 1996, section 550.37, 
297.35  subdivision 24, is amended to read: 
297.36     Subd. 24.  [EMPLOYEE BENEFITS.] (a) The debtor's right to 
298.1   receive present or future payments, or payments received by the 
298.2   debtor, under a stock bonus, pension, profit sharing, annuity, 
298.3   individual retirement account, individual retirement annuity, 
298.4   simplified employee pension, or similar plan or contract on 
298.5   account of illness, disability, death, age, or length of service:
298.6      (1) to the extent the plan or contract is described in 
298.7   section 401(a), 403, 408, or 457 of the Internal Revenue Code of 
298.8   1986, as amended, or payments under the plan or contract are or 
298.9   will be rolled over as provided in section 402(a)(5), 403(b)(8), 
298.10  or 408(d)(3) of the Internal Revenue Code of 1986, as amended; 
298.11  or 
298.12     (2) to the extent of the debtor's aggregate interest under 
298.13  all plans and contracts up to a present value of $30,000 and 
298.14  additional amounts under all the plans and contracts to the 
298.15  extent reasonably necessary for the support of the debtor and 
298.16  any spouse or dependent of the debtor.  
298.17     (b) The exemptions in paragraph (a) do not apply when the 
298.18  debt is owed under a support order as defined in section 518.54, 
298.19  subdivision 4a. 
298.20     Sec. 92.  [552.01] [DEFINITIONS.] 
298.21     Subdivision 1.  [SCOPE.] The definitions in this section 
298.22  apply to this chapter. 
298.23     Subd. 2.  [CLAIM.] "Claim" means the unpaid balance of the 
298.24  public authority's judgment against the judgment debtor, 
298.25  including all lawful interest and costs incurred. 
298.26     Subd. 3.  [FINANCIAL INSTITUTION.] "Financial institution" 
298.27  means all entities identified in section 13B.06. 
298.28     Subd. 4.  [JUDGMENT DEBTOR.] "Judgment debtor" means a 
298.29  party against whom the public authority has a judgment for the 
298.30  recovery of money resulting from unpaid child support. 
298.31     Subd. 5.  [PUBLIC AUTHORITY.] "Public authority" means the 
298.32  public authority responsible for child support enforcement. 
298.33     Subd. 6.  [THIRD PARTY.] "Third party" means the person or 
298.34  entity upon whom the execution levy is served. 
298.35     Sec. 93.  [552.02] [PUBLIC AUTHORITY'S SUMMARY EXECUTION OF 
298.36  CHILD SUPPORT JUDGMENT DEBTS; WHEN AUTHORIZED.] 
299.1      The public authority may execute on a money judgment 
299.2   resulting from unpaid child support by levying under this 
299.3   chapter on indebtedness owed to the judgment debtor by a third 
299.4   party.  The public authority may execute under this chapter upon 
299.5   service of a notice of child support judgment levy for which the 
299.6   seal of the court is not required. 
299.7      Sec. 94.  [552.03] [SCOPE OF GENERAL AND SPECIFIC 
299.8   PROVISIONS.] 
299.9      General provisions relating to the public authority's 
299.10  summary execution as authorized in this chapter are set forth in 
299.11  section 552.04.  Specific provisions relating to summary 
299.12  execution on funds at a financial institution are set forth in 
299.13  section 552.05.  When the public authority levies against funds 
299.14  at a financial institution, the specific provisions of section 
299.15  552.05 must be complied with in addition to the general 
299.16  provisions of section 552.04.  Provisions contained in the 
299.17  statutory forms are incorporated in this chapter and have the 
299.18  same force of law as any other provisions in this chapter.  
299.19     Sec. 95.  [552.04] [GENERAL PROVISIONS.] 
299.20     Subdivision 1.  [RULES OF CIVIL PROCEDURE.] Unless this 
299.21  chapter specifically provides otherwise, the Minnesota Rules of 
299.22  Civil Procedure for the district courts apply in all proceedings 
299.23  under this chapter.  
299.24     Subd. 2.  [PROPERTY ATTACHABLE BY SERVICE OF LIEN 
299.25  NOTICE.] Subject to the exemptions provided by subdivision 3 and 
299.26  section 550.37, and any other applicable statute, the service by 
299.27  the public authority of a notice of child support judgment levy 
299.28  under this chapter attaches all nonexempt indebtedness or money 
299.29  due or belonging to the judgment debtor and owing by the third 
299.30  party or in the possession or under the control of the third 
299.31  party at the time of service of the notice of child support 
299.32  judgment levy, whether or not the indebtedness or money has 
299.33  become payable.  The third party shall not be compelled to pay 
299.34  or deliver the same before the time specified by any agreement 
299.35  unless the agreement was fraudulently contracted to defeat an 
299.36  execution levy or other collection remedy. 
300.1      Subd. 3.  [PROPERTY NOT ATTACHABLE.] The following property 
300.2   is not subject to attachment by a notice of child support 
300.3   judgment levy served under this chapter:  
300.4      (1) any indebtedness or money due to the judgment debtor, 
300.5   unless at the time of the service of the notice of child support 
300.6   judgment levy the same is due absolutely or does not depend upon 
300.7   any contingency; 
300.8      (2) any judgment owing by the third party to the judgment 
300.9   debtor, if the third party or the third party's property is 
300.10  liable on an execution levy upon the judgment; 
300.11     (3) any debt owing by the third party to the judgment 
300.12  debtor for which any negotiable instrument has been issued or 
300.13  endorsed by the third party; 
300.14     (4) any indebtedness or money due to the judgment debtor 
300.15  with a cumulative value of less than $10; and 
300.16     (5) any disposable earnings, indebtedness, or money that is 
300.17  exempt under state or federal law.  
300.18     Subd. 4.  [SERVICE OF THIRD-PARTY LEVY; NOTICE AND 
300.19  DISCLOSURE FORMS.] When levying upon money owed to the judgment 
300.20  debtor by a third party, the public authority shall serve a copy 
300.21  of the notice of child support judgment levy upon the third 
300.22  party either by registered or certified mail, or by personal 
300.23  service.  Along with a copy of the notice of child support 
300.24  judgment levy, the public authority shall serve upon the third 
300.25  party a notice of third-party levy and disclosure form that must 
300.26  be substantially in the form set forth below. 
300.27                OFFICE OF ADMINISTRATIVE HEARINGS
300.28                               File No. ...........
300.29  ........ (Public Authority)
300.30  against                        NOTICE OF THIRD PARTY
300.31  ........ (Judgment Debtor)     LEVY AND DISCLOSURE
300.32  and                            (OTHER THAN EARNINGS)
300.33  ........ (Third Party)
300.34     PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 
300.35  chapter 552, the undersigned, as representative of the public 
300.36  authority responsible for child support enforcement, makes 
300.37  demand and levies execution upon all money due and owing by you 
300.38  to the judgment debtor for the amount of the judgment specified 
301.1   below.  A copy of the notice of child support judgment levy is 
301.2   enclosed.  The unpaid judgment balance is $...... 
301.3      In responding to this levy, you are to complete the 
301.4   attached disclosure form and mail it to the public authority, 
301.5   together with your check payable to the public authority, for 
301.6   the nonexempt amount owed by you to the judgment debtor or for 
301.7   which you are obligated to the judgment debtor, within the time 
301.8   limits in chapter 552. 
301.9      Two exemption notices are also enclosed according to 
301.10  Minnesota Statutes, section 552.02. 
301.11                       Public Authority
301.12                        Address
301.13                        (........)
301.14                        Telephone Number
301.15     
301.16                            DISCLOSURE
301.17     On the ... day of ......, 19.., the time of service of the 
301.18  execution levy herein, there was due and owing the judgment 
301.19  debtor from the third party the following: 
301.20     (1) Money.  Enter on the line below any amounts due and 
301.21  owing the judgment debtor, except earnings, from the third party.
301.22     ......................... 
301.23     (2) Setoff.  Enter on the line below the amount of any 
301.24  setoff, defense, lien, or claim which the third party claims 
301.25  against the amount set forth on line (1).  State the facts by 
301.26  which the setoff, defense, lien, or claim is claimed.  (Any 
301.27  indebtedness to you incurred by the judgment debtor within ten 
301.28  days prior to the receipt of the first execution levy on a debt 
301.29  may not be claimed as a setoff, defense, lien, or claim against 
301.30  the amount set forth on line (1).) 
301.31     ......................... 
301.32     (3) Exemption.  Enter on the line below any amounts or 
301.33  property claimed by the judgment debtor to be exempt from 
301.34  execution. 
301.35     ......................... 
301.36     (4) Adverse Interest.  Enter on the line below any amounts 
301.37  claimed by other persons by reason of ownership or interest in 
302.1   the judgment debtor's property. 
302.2      ......................... 
302.3      (5) Enter on the line below the total of lines (2), (3), 
302.4   and (4). 
302.5      .........................  
302.6      (6) Enter on the line below the difference obtained (never 
302.7   less than zero when line (5) is subtracted from the amount on 
302.8   line (1)). 
302.9      ......................... 
302.10     (7) Enter on the line below 100 percent of the amount of 
302.11  the public authority's claim which remains unpaid.  
302.12     ......................... 
302.13     (8) Enter on the line below the lesser of line (6) and line 
302.14  (7).  You are instructed to remit this amount only if it is $10 
302.15  or more.  
302.16     ......................... 
302.17                           AFFIRMATION
302.18     I, .......... (person signing Affirmation), am the third 
302.19  party or I am authorized by the third party to complete this 
302.20  nonearnings disclosure, and have done so truthfully and to the 
302.21  best of my knowledge. 
302.22  Dated:..........                Signature
302.23                                   ..........
302.24                                   Title
302.25                                   ..........
302.26                                   Telephone Number
302.27     Subd. 5.  [THIRD-PARTY DISCLOSURE AND REMITTANCE.] Within 
302.28  15 days after receipt of the notice of child support judgment 
302.29  levy, unless governed by section 552.05, the third party shall 
302.30  disclose and remit to the public authority as much of the amount 
302.31  due as the third party's own debt equals to the judgment debtor. 
302.32     Subd. 6.  [ORAL DISCLOSURE.] Before or after the service of 
302.33  a written disclosure by a third party under subdivision 5, upon 
302.34  a showing by affidavit upon information and belief that an oral 
302.35  examination of the third party would provide a complete 
302.36  disclosure of relevant facts, any party to the execution 
302.37  proceedings may obtain an ex parte order requiring the third 
302.38  party, or a representative of the third party designated by name 
303.1   or by title, to appear for oral examination before the court or 
303.2   a referee appointed by the court.  Notice of the examination 
303.3   must be given to all parties. 
303.4      Subd. 7.  [SUPPLEMENTAL COMPLAINT.] If a third party holds 
303.5   property, money, earnings, or other indebtedness by a title that 
303.6   is void as to the judgment debtor's creditors, the property may 
303.7   be levied on although the judgment debtor would be barred from 
303.8   maintaining an action to recover the property, money, earnings, 
303.9   or other indebtedness.  In this and all other cases where the 
303.10  third party denies liability, the public authority may move the 
303.11  court at any time before the third party is discharged, on 
303.12  notice to both the judgment debtor and the third party for an 
303.13  order making the third party a party to supplemental action and 
303.14  granting the public authority leave to file a supplemental 
303.15  complaint against the third party and the judgment debtor.  The 
303.16  supplemental complaint shall set forth the facts upon which the 
303.17  public authority claims to charge the third party.  If probable 
303.18  cause is shown, the motion shall be granted.  The supplemental 
303.19  complaint shall be served upon the third party and the judgment 
303.20  debtor and any other parties.  The parties served shall answer 
303.21  or respond pursuant to the Minnesota Rules of Civil Procedure 
303.22  for the district courts, and if they fail to do so, judgment by 
303.23  default may be entered against them.  
303.24     Subd. 8.  [JUDGMENT AGAINST THIRD PARTY UPON FAILURE TO 
303.25  DISCLOSE OR REMIT.] Judgment may be entered against a third 
303.26  party who has been served with a notice of child support 
303.27  judgment levy and fails to disclose or remit the levied funds as 
303.28  required in this chapter.  Upon order to show cause served on 
303.29  the third party and notice of motion supported by affidavit of 
303.30  facts and affidavit of service upon both the judgment debtor and 
303.31  third party, the court may render judgment against the third 
303.32  party for an amount not exceeding 100 percent of the amount 
303.33  claimed in the execution.  Judgment against the third party 
303.34  under this section shall not bar the public authority from 
303.35  further remedies under this chapter as a result of any 
303.36  subsequent defaults by the third party.  The court upon good 
304.1   cause shown may remove the default and permit the third party to 
304.2   disclose or remit on just terms.  
304.3      Subd. 9.  [SATISFACTION.] Upon expiration, the public 
304.4   authority making the execution shall file a partial satisfaction 
304.5   by amount or the total satisfaction with the court administrator 
304.6   without charge.  
304.7      Subd. 10.  [THIRD-PARTY GOOD FAITH REQUIREMENT.] The third 
304.8   party is not liable to the judgment debtor, public authority, or 
304.9   other person for wrongful retention if the third party retains 
304.10  or remits disposable earnings, indebtedness, or money of the 
304.11  judgment debtor or any other person, pending the third party's 
304.12  disclosure or consistent with the disclosure the third party 
304.13  makes, if the third party has a good faith belief that the 
304.14  property retained or remitted is subject to the execution.  In 
304.15  addition, the third party may, at any time before or after 
304.16  disclosure, proceed under Rule 67 of the Minnesota Rules of 
304.17  Civil Procedure to make deposit into court.  No third party is 
304.18  liable for damages if the third party complies with the 
304.19  provisions of this chapter.  
304.20     Subd. 11.  [BAD FAITH CLAIM.] If, in a proceeding brought 
304.21  under section 552.05, subdivision 9, or a similar proceeding 
304.22  under this chapter to determine a claim of exemption, the claim 
304.23  of exemption is not upheld, and the court finds that it was 
304.24  asserted in bad faith, the public authority shall be awarded 
304.25  actual damages, costs, reasonable attorney fees resulting from 
304.26  the additional proceedings, and an amount not to exceed $100.  
304.27  If the claim of exemption is upheld, and the court finds that 
304.28  the public authority disregarded the claim of exemption in bad 
304.29  faith, the judgment debtor shall be awarded actual damages, 
304.30  costs, reasonable attorney fees resulting from the additional 
304.31  proceedings, and an amount not to exceed $100.  The underlying 
304.32  judgment shall be modified to reflect assessment of damages, 
304.33  costs, and attorney fees.  However, if the party in whose favor 
304.34  a penalty assessment is made is not actually indebted to that 
304.35  party's attorney for fees, the attorney fee award shall be made 
304.36  directly to the attorney, and if not paid, an appropriate 
305.1   judgment in favor of the attorney shall be entered.  Any action 
305.2   by a public authority made in bad faith and in violation of this 
305.3   chapter renders the execution levy void and the public authority 
305.4   liable to the judgment debtor named in the execution levy in the 
305.5   amount of $100, actual damages, and reasonable attorney fees and 
305.6   costs.  
305.7      Subd. 12.  [DISCHARGE OF A THIRD PARTY.] Subject to 
305.8   subdivisions 6 and 13, the third party, after disclosure, shall 
305.9   be discharged of any further obligation to the public authority 
305.10  when one of the conditions in paragraphs (a) to (c) are met. 
305.11     (a) The third party discloses that the third party is not 
305.12  indebted to the judgment debtor or does not possess any 
305.13  earnings, property, money, or indebtedness belonging to the 
305.14  judgment debtor that is attachable as defined in subdivision 2.  
305.15  The disclosure is conclusive against the public authority and 
305.16  discharges the third party from any further obligation to the 
305.17  public authority other than to retain and remit all nonexempt 
305.18  disposable earnings, property, indebtedness, or money of the 
305.19  judgment debtor which was disclosed.  
305.20     (b) The third party discloses that the third party is 
305.21  indebted to the judgment debtor as indicated on the execution 
305.22  disclosure form.  The disclosure is conclusive against the 
305.23  public authority and discharges the third party from any further 
305.24  obligation to the public authority other than to retain and 
305.25  remit all nonexempt disposable earnings, property, indebtedness, 
305.26  or money of the judgment debtor that was disclosed. 
305.27     (c) The court may, upon motion of an interested person, 
305.28  discharge the third party as to any disposable earnings, money, 
305.29  property, or indebtedness in excess of the amount that may be 
305.30  required to satisfy the public authority's claim.  
305.31     Subd. 13.  [EXCEPTIONS TO DISCHARGE OF A THIRD PARTY.] The 
305.32  third party is not discharged if:  
305.33     (a) Within 20 days of the service of the third party's 
305.34  disclosure, an interested person serves a motion relating to the 
305.35  execution levy.  The hearing on the motion must be scheduled to 
305.36  be heard within 30 days of the service of the motion. 
306.1      (b) The public authority moves the court for leave to file 
306.2   a supplemental complaint against the third party, as provided 
306.3   for in subdivision 7, and the court upon proper showing vacates 
306.4   the discharge of the third party.  
306.5      Subd. 14.  [JOINDER AND INTERVENTION BY PERSONS IN 
306.6   INTEREST.] If it appears that a person, who is not a party to 
306.7   the action, has or claims an interest in any of the disposable 
306.8   earnings, other indebtedness, or money, the court shall permit 
306.9   that person to intervene or join in the execution proceeding 
306.10  under this chapter.  If that person does not appear, the court 
306.11  may summon that person to appear or order the claim barred.  The 
306.12  person so appearing or summoned shall be joined as a party and 
306.13  be bound by the judgment.  
306.14     Subd. 15.  [APPEAL.] A party to an execution proceeding 
306.15  aggrieved by an order or final judgment may appeal as in other 
306.16  civil cases.  
306.17     Subd. 16.  [PRIORITY OF LEVY.] Notwithstanding section 
306.18  52.12, a levy by the public authority made under this section on 
306.19  an obligor's funds on deposit in a financial institution located 
306.20  in this state has priority over any unexercised right of setoff 
306.21  of the financial institution to apply the levied funds toward 
306.22  the balance of an outstanding loan or loans owed by the obligor 
306.23  to the financial institution.  A claim by the financial 
306.24  institution that it exercised its right to setoff prior to the 
306.25  levy by the public authority must be substantiated by evidence 
306.26  of the date of the setoff and must be verified by the sworn 
306.27  statement of a responsible corporate officer of the financial 
306.28  institution.  For purposes of determining the priority of a levy 
306.29  made under this section, the levy must be treated as if it were 
306.30  an execution made under chapter 550. 
306.31     Sec. 96.  [552.05] [SUMMARY EXECUTION UPON FUNDS AT 
306.32  FINANCIAL INSTITUTION.] 
306.33     Subdivision 1.  [PROCEDURE.] In addition to the provisions 
306.34  of section 552.04, when levying upon funds at a financial 
306.35  institution, this section must be complied with.  If the notice 
306.36  of child support judgment levy is being used by the public 
307.1   authority to levy funds of a judgment debtor who is a natural 
307.2   person and if the funds to be levied are held on deposit at any 
307.3   financial institution, the public authority shall serve with the 
307.4   notice of child support judgment levy and summary execution two 
307.5   copies of an exemption notice.  The notice must be substantially 
307.6   in the form determined by the public authority.  Failure of the 
307.7   public authority to send the exemption notice renders the 
307.8   execution levy void, and the financial institution shall take no 
307.9   action.  Upon receipt of the notice of child support judgment 
307.10  levy and exemption notices, the financial institution shall 
307.11  retain as much of the amount due as the financial institution 
307.12  has on deposit owing to the judgment debtor, but not more than 
307.13  100 percent of the amount remaining due on the judgment.  
307.14     The notice informing a judgment debtor that an execution 
307.15  levy has been used by the public authority to attach funds of 
307.16  the judgment debtor to satisfy a claim must be substantially in 
307.17  the form determined by the public authority.  
307.18     Subd. 2.  [EFFECT OF EXEMPTION NOTICE.] Within two business 
307.19  days after receipt of the execution levy and exemption notices, 
307.20  the financial institution shall serve upon the judgment debtor 
307.21  two copies of the exemption notice.  The financial institution 
307.22  shall serve the notice by first class mail to the last known 
307.23  address of the judgment debtor.  If no claim of exemption is 
307.24  received by the financial institution within 14 days after the 
307.25  exemption notices are mailed to the judgment debtor, the funds 
307.26  remain subject to the execution levy and shall be remitted to 
307.27  the public authority within seven days.  If the judgment debtor 
307.28  elects to claim an exemption, the judgment debtor shall complete 
307.29  the exemption notice, sign it under penalty of perjury, and 
307.30  deliver one copy to the financial institution and one copy to 
307.31  the public authority within 14 days of the date postmarked on 
307.32  the correspondence mailed to the judgment debtor containing the 
307.33  exemption notices.  Failure of the judgment debtor to deliver 
307.34  the executed exemption notice does not constitute a waiver of 
307.35  any claimed right to an exemption.  Upon timely receipt of a 
307.36  claim of exemption, funds not claimed to be exempt by the 
308.1   judgment debtor remain subject to the execution levy.  All money 
308.2   claimed to be exempt shall be released to the judgment debtor 
308.3   upon the expiration of seven days after the date postmarked on 
308.4   the envelope containing the executed exemption notice mailed to 
308.5   the financial institution, or the date of personal delivery of 
308.6   the executed exemption notice to the financial institution, 
308.7   unless within that time the public authority interposes an 
308.8   objection to the exemption.  
308.9      Subd. 3.  [OBJECTION TO EXEMPTION CLAIM.] Objection shall 
308.10  be interposed by mailing or delivering one copy of the written 
308.11  objection to the financial institution and one copy of the 
308.12  written objection to the judgment debtor along with a copy of 
308.13  the judgment debtor's claimed exemption form.  Both copies of an 
308.14  objection to an exemption claim shall be mailed or delivered on 
308.15  the same date.  The financial institution may rely on the date 
308.16  of mailing or delivery of a notice to it in computing any time 
308.17  periods in this section.  The written objection must be 
308.18  substantially in the form specified in subdivision 5.  
308.19     Subd. 4.  [DUTIES OF FINANCIAL INSTITUTION IF OBJECTION IS 
308.20  MADE TO EXEMPTION CLAIM.] Upon receipt of a written objection 
308.21  from the public authority within the specified seven-day period, 
308.22  the financial institution shall retain the funds claimed to be 
308.23  exempt.  Unless the financial institution receives a request for 
308.24  hearing and notice of hearing from the judgment debtor asserting 
308.25  exemption rights within ten days after receipt of a written 
308.26  objection to the exemption, the funds remain subject to the 
308.27  execution levy as if no claim of exemption had been made and 
308.28  shall be remitted to the public authority within seven days.  If 
308.29  a request for hearing and notice of hearing to determine the 
308.30  validity of a claim of exemption is received by the financial 
308.31  institution within the period provided, it shall retain the 
308.32  funds claimed to be exempt until otherwise ordered by the court. 
308.33     Subd. 5.  [NOTICE OF OBJECTION.] (a) The written objection 
308.34  to the judgment debtor's claim of exemption must be in 
308.35  substantially the following form:  
308.36                OFFICE OF ADMINISTRATIVE HEARINGS
309.1   ....... (Public Authority)        OBJECTION TO
309.2   ....... (Judgment Debtor)         EXEMPTION CLAIM
309.3   ....... (Garnishee)(Third Party)
309.4      The public authority objects to your claim for exemption 
309.5   from levy of execution for the following reason(s): 
309.6      .................... 
309.7      .................... 
309.8      .................... 
309.9      Because of this objection, your financial institution will 
309.10  retain the funds you claimed to be exempt for an additional ten 
309.11  days.  If you wish to request a hearing on your exemption claim, 
309.12  you should do so within ten days of your receipt of this 
309.13  objection.  You may request a hearing by completing the attached 
309.14  form and filing it with the office of administrative hearings. 
309.15     (1) The office of administrative hearings shall provide 
309.16  clerical assistance to help with the writing and filing of a 
309.17  Request for Hearing by any person not represented by counsel.  
309.18  The office of administrative hearings may charge a fee of $1 for 
309.19  the filing of a Request for Hearing. 
309.20     (2) Upon the filing of a Request for Hearing, the office of 
309.21  administrative hearings shall schedule the matter for a hearing 
309.22  no later than five business days from the date of filing.  The 
309.23  office of administrative hearings shall promptly send a 
309.24  completed copy of the request, including the hearing date, time, 
309.25  and place to the adverse party and to the financial institution 
309.26  by first class mail. 
309.27     (3) If it is possible that the financial institution might 
309.28  not receive the requested mailed form mailed from the court 
309.29  administrator within ten days, then you may want to personally 
309.30  deliver a copy of the request to the financial institution after 
309.31  you have filed your request with the office of administrative 
309.32  hearings. 
309.33     (4) An order stating whether your funds are exempt shall be 
309.34  issued by the office of administrative hearings within three 
309.35  days of the date of the hearing. 
309.36     If you do not file a Request for Hearing within ten days of 
309.37  the date you receive this objection, your financial institution 
310.1   may turn your funds over to the public authority. 
310.2      If you file a Request for Hearing and your financial 
310.3   institution receives it within ten days of the date it received 
310.4   this objection, your financial institution will retain your 
310.5   funds claimed to be exempt until otherwise ordered by the office 
310.6   of administrative hearings. 
310.7   ...........
310.8   Attorney for Public Authority
310.9      Subd. 6.  [REQUEST FOR HEARING AND NOTICE FOR HEARING.] The 
310.10  request for hearing accompanying the objection notice must be in 
310.11  substantially the following form: 
310.12                OFFICE OF ADMINISTRATIVE HEARINGS
310.13  ........(Public Authority)       REQUEST FOR HEARING
310.14  .....(Judgment Debtor)           AND NOTICE FOR HEARING
310.15  .....(Garnishee)(Third Party)
310.16     I hereby request a hearing to resolve the exemption claim 
310.17  which has been made in this case regarding funds in the account 
310.18  of ..... (Judgment Debtor) at the ..... (Financial Institution.) 
310.19     I believe the property being held is exempt because 
310.20  ................................................ 
310.21  Dated:  .............        ..............
310.22                               (JUDGMENT DEBTOR)
310.23                               .................
310.24                               (ADDRESS)
310.25                               .................
310.26  HEARING DATE:  ............
310.27  HEARING PLACE:  ...........
310.28     (Note to both parties:  Bring with you to the hearing all 
310.29  documents and materials relevant to the exemption claim and 
310.30  objection.  Failure to do so could delay the court's decision.) 
310.31     Subd. 7.  [RIGHT TO REQUEST REVIEW.] (a) To request 
310.32  administrative review of an action taken by the public authority 
310.33  under this section, the obligor must make a request in writing 
310.34  directed to the public authority or file a motion with the court 
310.35  within 20 days of the date the notice of a child support 
310.36  judgment levy was served on the obligor. 
310.37     (b) The public authority's receipt of a written request for 
310.38  administrative review starts the administrative process.  At a 
310.39  hearing conducted under section 518.5511, the only issues to be 
310.40  determined are whether: 
311.1      (1) the public authority complied with the process required 
311.2   by this section; 
311.3      (2) the amount stated in the notice of child support 
311.4   judgment levy is owed by the obligor; and 
311.5      (3) the amount stated in the notice of child support 
311.6   judgment levy is correct. 
311.7      (c) The obligor's filing of a motion requesting a court 
311.8   hearing under the Rules of Civil Procedure serves to stay the 
311.9   levy on the obligor's property, but the lien remains in force 
311.10  and effect until the court has issued a final ruling on the 
311.11  matter and all periods for appeal have expired.  At a court 
311.12  hearing requested by the obligor, the only issues to be 
311.13  determined are whether: 
311.14     (1) the public authority complied with the process required 
311.15  by this section; 
311.16     (2) the amount stated in the notice of child support 
311.17  judgment levy is owed by the obligor; and 
311.18     (3) the amount stated in the notice of child support 
311.19  judgment levy is correct. 
311.20     (d) The court may review the proceeding taken by the public 
311.21  authority under this section and may correct any mistakes of 
311.22  fact but shall not reduce or retroactively modify child support 
311.23  arrears. 
311.24     Subd. 8.  [RELEASE OF FUNDS.] At any time during the 
311.25  procedure specified in this section, the judgment debtor or the 
311.26  attorney for the public authority or the public authority may, 
311.27  by a writing dated after the service of the writ of execution, 
311.28  direct the financial institution to release the funds in 
311.29  question to the other party.  Upon receipt of a release, the 
311.30  financial institution shall release the funds as directed. 
311.31     Subd. 9.  [SUBSEQUENT PROCEEDINGS; BAD FAITH CLAIM.] If in 
311.32  subsequent proceedings brought by the judgment debtor or the 
311.33  public authority, the claim of exemption is not upheld, and the 
311.34  office of administrative hearings finds that it was asserted in 
311.35  bad faith, the public authority shall be awarded actual damages, 
311.36  costs, and reasonable attorney fees resulting from the 
312.1   additional proceedings, and an amount not to exceed $100.  The 
312.2   underlying judgment must be modified to reflect assessment of 
312.3   damages, costs, and attorney fees.  However, if the party in 
312.4   whose favor a penalty assessment is made is not actually 
312.5   indebted to the party's attorney for fees, the attorney's fee 
312.6   award shall be made directly to the attorney and if not paid, an 
312.7   appropriate judgment in favor of the attorney shall be entered.  
312.8   Upon motion of any party in interest, on notice, the office of 
312.9   administrative hearings shall determine the validity of any 
312.10  claim of exemption, and may make any order necessary to protect 
312.11  the rights of those interested.  No financial institution is 
312.12  liable for damages for complying with this section.  Both copies 
312.13  of an exemption claim or an objection to an exemption claim must 
312.14  be mailed or delivered on the same date.  The financial 
312.15  institution may rely on the date of mailing or delivery of a 
312.16  notice to it in computing any time periods in this section. 
312.17     Subd. 10.  [FORMS.] The public authority shall develop 
312.18  statutory forms for use as required under this section. 
312.19     Sec. 97.  [CHILD SUPPORT ENFORCEMENT PROGRAM; SERVICES 
312.20  DELIVERY STUDY.] 
312.21     The commissioner of human services shall conduct a study of 
312.22  the overall state child support enforcement delivery system in 
312.23  order to appropriately meet the performance requirements of new 
312.24  federal law. 
312.25     Sec. 98.  [AGENCY CONSULTATION ON SUSPENDING RECREATIONAL 
312.26  LICENSES.] 
312.27     The commissioner shall consult with other state agencies to 
312.28  establish procedures to meet federal requirements to suspend 
312.29  recreational licenses of child support obligors who fail to pay 
312.30  child support. 
312.31     Sec. 99.  [TRANSFER TO COMMISSIONER OF CHILDREN, FAMILIES, 
312.32  AND LEARNING; REVISOR INSTRUCTION.] 
312.33     Effective July 1, 1997, all duties and funding related to 
312.34  family visitation centers under Minnesota Statutes, section 
312.35  256F.09, are transferred to the commissioner of children, 
312.36  families, and learning.  In the next edition of Minnesota 
313.1   Statutes, the revisor of statutes shall renumber Minnesota 
313.2   Statutes, section 256F.09, in Minnesota Statutes, chapter 119A. 
313.3      Sec. 100.  [INSTRUCTION TO REVISOR.] 
313.4      The revisor shall delete the references to sections 518.611 
313.5   and 518.613 and insert a reference to section 518.6111 wherever 
313.6   the occur in Minnesota Statutes and Minnesota Rules. 
313.7      Sec. 101.  [REPEALER.] 
313.8      (a) Minnesota Statutes 1996, sections 518C.9011; and 
313.9   609.375, subdivisions 3, 4, and 6, are repealed. 
313.10     (b) Minnesota Statutes 1996, sections 256.74; 256.979, 
313.11  subdivision 9; 256F.05, subdivisions 5 and 7; 518.5511, 
313.12  subdivisions 5, 6, 7, 8, and 9; 518.611; 518.613; 518.645; and 
313.13  518C.502, are repealed effective July 1, 1997. 
313.14     Sec. 102.  [EFFECTIVE DATE.] 
313.15     Section 1 is effective the day following final enactment. 
313.16     Sections 3, and 79 to 89 are effective July 1, 1998.  
313.17  Section 82 applies only to judgments first docketed on or after 
313.18  July 1, 1998.  
313.19     Sections 20 to 27, amending the family preservation fund 
313.20  provisions, are effective July 1, 1997. 
313.21                             ARTICLE 7
313.22                CONTINUING CARE FOR DISABLED PERSONS
313.23     Section 1.  Minnesota Statutes 1996, section 62E.14, is 
313.24  amended by adding a subdivision to read: 
313.25     Subd. 4e.  [WAIVER OF PREEXISTING CONDITIONS; PERSONS 
313.26  COVERED BY PUBLICLY FUNDED HEALTH PROGRAMS.] A person may enroll 
313.27  in the comprehensive plan with a waiver of the preexisting 
313.28  condition limitation in subdivision 3, provided that:  
313.29     (1) the person was formerly enrolled in the medical 
313.30  assistance, general assistance medical care, or MinnesotaCare 
313.31  program; 
313.32     (2) the person is a Minnesota resident; and 
313.33     (3) the person applies within 90 days of termination from 
313.34  medical assistance, general assistance medical care, or 
313.35  MinnesotaCare program. 
313.36     Sec. 2.  Minnesota Statutes 1996, section 245.652, 
314.1   subdivision 1, is amended to read: 
314.2      Subdivision 1.  [PURPOSE.] The regional treatment centers 
314.3   shall provide services designed to end a person's reliance on 
314.4   chemical use or a person's chemical abuse and increase effective 
314.5   and chemical-free functioning.  Clinically effective programs 
314.6   must be provided in accordance with section 246.64.  Services 
314.7   may be offered on the regional center campus or at sites 
314.8   elsewhere in the catchment area served by the regional treatment 
314.9   center. 
314.10     Sec. 3.  Minnesota Statutes 1996, section 245.652, 
314.11  subdivision 2, is amended to read: 
314.12     Subd. 2.  [SERVICES OFFERED.] Services provided must may 
314.13  include, but are not limited to, the following: 
314.14     (1) primary and extended residential care, including 
314.15  residential treatment programs of varied duration intended to 
314.16  deal with a person's chemical dependency or chemical abuse 
314.17  problems; 
314.18     (2) follow-up care to persons discharged from regional 
314.19  treatment center programs or other chemical dependency programs; 
314.20     (3) outpatient treatment programs; and 
314.21     (4) other treatment services, as appropriate and as 
314.22  provided under contract or shared service agreements. 
314.23     Sec. 4.  Minnesota Statutes 1996, section 245.652, 
314.24  subdivision 4, is amended to read: 
314.25     Subd. 4.  [SYSTEM LOCATIONS.] Programs shall be located in 
314.26  Anoka, Brainerd, Fergus Falls, St. Peter, and Willmar and may be 
314.27  offered at other selected sites.  Programs are currently located 
314.28  in Walker, Anoka, Brainerd, Fergus Falls, St. Peter, Willmar, 
314.29  and in the Moose Lake area, Cloquet, and Cambridge.  Locations 
314.30  of state-operated chemical dependency programs shall be 
314.31  determined by needs of Minnesota counties and consumers.  The 
314.32  commissioner of human services shall have the authority to 
314.33  consolidate or close any state-operated chemical dependency 
314.34  programs that are not able to generate sufficient revenues to 
314.35  cover their expenses, after reasonable attempts to generate 
314.36  additional revenues have failed.  Before the closure or 
315.1   consolidation of any state-operated chemical dependency program, 
315.2   the commissioner shall notify the chairs of the senate health 
315.3   and family security budget division and the house of 
315.4   representatives health and human services finance division. 
315.5      Sec. 5.  Minnesota Statutes 1996, section 246.0135, is 
315.6   amended to read: 
315.7      246.0135 [OPERATION OF REGIONAL TREATMENT CENTERS.] 
315.8      (a) The commissioner of human services is prohibited from 
315.9   closing any regional treatment center or state-operated nursing 
315.10  home or and, except for chemical dependency programs as provided 
315.11  in section 245.652, any program at any of the regional treatment 
315.12  centers or state-operated nursing homes, without specific 
315.13  legislative authorization.  For persons with mental retardation 
315.14  or related conditions who move from one regional treatment 
315.15  center to another regional treatment center, the provisions of 
315.16  section 256B.092, subdivision 10, must be followed for both the 
315.17  discharge from one regional treatment center and admission to 
315.18  another regional treatment center, except that the move is not 
315.19  subject to the consensus requirement of section 256B.092, 
315.20  subdivision 10, paragraph (b). 
315.21     (b) Prior to closing or downsizing a regional treatment 
315.22  center, the commissioner of human services shall be responsible 
315.23  for assuring that community-based alternatives developed in 
315.24  response are adequate to meet the program needs identified by 
315.25  each county within the catchment area and do not require 
315.26  additional local county property tax expenditures. 
315.27     (c) The nonfederal share of the cost of alternative 
315.28  treatment or care developed as the result of the closure of a 
315.29  regional treatment center, including costs associated with 
315.30  fulfillment of responsibilities under chapter 253B shall be paid 
315.31  from state funds appropriated for purposes specified in section 
315.32  246.013. 
315.33     (d) Counties in the catchment area of a regional treatment 
315.34  center which has been closed or downsized may not at any time be 
315.35  required to pay a greater cost of care for alternative care and 
315.36  treatment than the county share set by the commissioner for the 
316.1   cost of care provided by regional treatment centers. 
316.2      (e) The commissioner may not divert state funds used for 
316.3   providing for care or treatment of persons residing in a 
316.4   regional treatment center for purposes unrelated to the care and 
316.5   treatment of such persons. 
316.6      Sec. 6.  Minnesota Statutes 1996, section 246.02, 
316.7   subdivision 2, is amended to read: 
316.8      Subd. 2.  The commissioner of human services shall act with 
316.9   the advice of the medical policy directional committee on mental 
316.10  health in the appointment and removal of the chief executive 
316.11  officers of the following institutions:  Anoka-Metro Regional 
316.12  Treatment Center, Ah-Gwah-Ching Center, Fergus Falls Regional 
316.13  Treatment Center, St. Peter Regional Treatment Center and 
316.14  Minnesota Security Hospital, Willmar Regional Treatment Center, 
316.15  Faribault Regional Center, Cambridge Regional Human Services 
316.16  Center, Brainerd Regional Human Services Center, and until June 
316.17  30, 1995, Moose Lake Regional Treatment Center, and after June 
316.18  30, 1995, Minnesota Sexual Psychopathic Personality Treatment 
316.19  Center and until June 30, 1998, Faribault Regional Center. 
316.20     Sec. 7.  Minnesota Statutes 1996, section 252.025, 
316.21  subdivision 1, is amended to read: 
316.22     Subdivision 1.  [REGIONAL TREATMENT CENTERS.] State 
316.23  hospitals for persons with mental retardation shall be 
316.24  established and maintained at Faribault until June 30, 1998, 
316.25  Cambridge and Brainerd, and notwithstanding any provision to the 
316.26  contrary they shall be respectively known as the Faribault 
316.27  regional center, the Cambridge regional human services center, 
316.28  and the Brainerd regional human services center.  Each of the 
316.29  foregoing state hospitals shall also be known by the name of 
316.30  regional center at the discretion of the commissioner of human 
316.31  services.  The terms "human services" or "treatment" may be 
316.32  included in the designation. 
316.33     Sec. 8.  Minnesota Statutes 1996, section 252.025, 
316.34  subdivision 4, is amended to read: 
316.35     Subd. 4.  [STATE-PROVIDED SERVICES.] (a) It is the policy 
316.36  of the state to capitalize and recapitalize the regional 
317.1   treatment centers as necessary to prevent depreciation and 
317.2   obsolescence of physical facilities and to ensure they retain 
317.3   the physical capability to provide residential programs.  
317.4   Consistent with that policy and with section 252.50, and within 
317.5   the limits of appropriations made available for this purpose, 
317.6   the commissioner may establish, by June 30, 1991, the following 
317.7   state-operated, community-based programs for the least 
317.8   vulnerable regional treatment center residents:  at Brainerd 
317.9   regional services center, two residential programs and two day 
317.10  programs; at Cambridge regional treatment center, four 
317.11  residential programs and two day programs; at Faribault regional 
317.12  treatment center, ten residential programs and six day programs; 
317.13  at Fergus Falls regional treatment center, two residential 
317.14  programs and one day program; at Moose Lake regional treatment 
317.15  center, four residential programs and two day programs; and at 
317.16  Willmar regional treatment center, two residential programs and 
317.17  one day program. 
317.18     (b) By January 15, 1991, the commissioner shall report to 
317.19  the legislature a plan to provide continued regional treatment 
317.20  center capacity and state-operated, community-based residential 
317.21  and day programs for persons with developmental disabilities at 
317.22  Brainerd, Cambridge, Faribault, Fergus Falls, St. Peter, and 
317.23  Willmar, as follows: 
317.24     (1) by July 1, 1998, continued regional treatment center 
317.25  capacity to serve 350 persons with developmental disabilities as 
317.26  follows:  at Brainerd, 80 persons; at Cambridge, 12 persons; at 
317.27  Faribault, 110 persons; at Fergus Falls, 60 persons; at St. 
317.28  Peter, 35 persons; at Willmar, 25 persons; and up to 16 crisis 
317.29  beds in the Twin Cities metropolitan area; and 
317.30     (2) by July 1, 1999, continued regional treatment center 
317.31  capacity to serve 254 persons with developmental disabilities as 
317.32  follows:  at Brainerd, 57 persons; at Cambridge, 12 persons; at 
317.33  Faribault, 80 persons; at Fergus Falls, 35 persons; at St. 
317.34  Peter, 30 persons; at Willmar, 12 persons, and up to 16 crisis 
317.35  beds in the Twin Cities metropolitan area.  In addition, the 
317.36  plan shall provide for the capacity to provide residential 
318.1   services to 570 persons with developmental disabilities in 95 
318.2   state-operated, community-based residential programs. 
318.3      The commissioner is subject to a mandamus action under 
318.4   chapter 586 for any failure to comply with the provisions of 
318.5   this subdivision. 
318.6      Sec. 9.  Minnesota Statutes 1996, section 252.025, is 
318.7   amended by adding a subdivision to read: 
318.8      Subd. 7.  [MINNESOTA EXTENDED TREATMENT OPTIONS.] The 
318.9   commissioner shall develop by July 1, 1997, the Minnesota 
318.10  extended treatment options to serve Minnesotans who have mental 
318.11  retardation and exhibit severe behaviors which present a risk to 
318.12  public safety.  This program will provide specialized 
318.13  residential services on the Cambridge campus and an array of 
318.14  community support services statewide. 
318.15     Sec. 10.  Minnesota Statutes 1996, section 252.32, 
318.16  subdivision 1a, is amended to read: 
318.17     Subd. 1a.  [SUPPORT GRANTS.] (a) Provision of support 
318.18  grants must be limited to families who require support and whose 
318.19  dependents are under the age of 22 and who have mental 
318.20  retardation or who have a related condition and who have been 
318.21  determined by a screening team established under section 
318.22  256B.092 to be at risk of institutionalization.  Families who 
318.23  are receiving home and community-based waivered services for 
318.24  persons with mental retardation or related conditions are not 
318.25  eligible for support grants.  Families whose annual adjusted 
318.26  gross income is $60,000 or more are not eligible for support 
318.27  grants except in cases where extreme hardship is demonstrated.  
318.28  Beginning in state fiscal year 1994, the commissioner shall 
318.29  adjust the income ceiling annually to reflect the projected 
318.30  change in the average value in the United States Department of 
318.31  Labor Bureau of Labor Statistics consumer price index (all 
318.32  urban) for that year. 
318.33     (b) Support grants may be made available as monthly subsidy 
318.34  grants and lump sum grants. 
318.35     (c) Support grants may be issued in the form of cash, 
318.36  voucher, and direct county payment to a vendor.  
319.1      (d) Applications for the support grant shall be made by the 
319.2   legal guardian to the county social service agency to the 
319.3   department of human services.  The application shall specify the 
319.4   needs of the families, the form of the grant requested by the 
319.5   families, and that the families have agreed to use the support 
319.6   grant for items and services within the designated reimbursable 
319.7   expense categories and recommendations of the county.  
319.8      (e) Families who were receiving subsidies on the date of 
319.9   implementation of the $60,000 income limit in paragraph (a) 
319.10  continue to be eligible for a family support grant until 
319.11  December 31, 1991, if all other eligibility criteria are met.  
319.12  After December 31, 1991, these families are eligible for a grant 
319.13  in the amount of one-half the grant they would otherwise 
319.14  receive, for as long as they remain eligible under other 
319.15  eligibility criteria. 
319.16     Sec. 11.  Minnesota Statutes 1996, section 252.32, 
319.17  subdivision 3, is amended to read: 
319.18     Subd. 3.  [AMOUNT OF SUPPORT GRANT; USE.] Support grant 
319.19  amounts shall be determined by the commissioner of human 
319.20  services county social service agency.  Each service and item 
319.21  purchased with a support grant must: 
319.22     (1) be over and above the normal costs of caring for the 
319.23  dependent if the dependent did not have a disability; 
319.24     (2) be directly attributable to the dependent's disabling 
319.25  condition; and 
319.26     (3) enable the family to delay or prevent the out-of-home 
319.27  placement of the dependent. 
319.28     The design and delivery of services and items purchased 
319.29  under this section must suit the dependent's chronological age 
319.30  and be provided in the least restrictive environment possible, 
319.31  consistent with the needs identified in the individual service 
319.32  plan. 
319.33     Items and services purchased with support grants must be 
319.34  those for which there are no other public or private funds 
319.35  available to the family.  Fees assessed to parents for health or 
319.36  human services that are funded by federal, state, or county 
320.1   dollars are not reimbursable through this program. 
320.2      The maximum monthly amount shall be $250 per eligible 
320.3   dependent, or $3,000 per eligible dependent per state fiscal 
320.4   year, within the limits of available funds.  During fiscal year 
320.5   1992 and 1993, the maximum monthly grant awarded to families who 
320.6   are eligible for medical assistance shall be $200, except in 
320.7   cases where extreme hardship is demonstrated.  The commissioner 
320.8   county social service agency may consider the dependent's 
320.9   supplemental security income in determining the amount of the 
320.10  support grant.  A variance The county social service agency may 
320.11  be granted by the commissioner to exceed $3,000 per state fiscal 
320.12  year per eligible dependent for emergency circumstances in cases 
320.13  where exceptional resources of the family are required to meet 
320.14  the health, welfare-safety needs of the child.  The commissioner 
320.15  county social service agency may set aside up to five percent of 
320.16  the appropriation its allocation to fund emergency situations. 
320.17     Effective July 1, 1997, county social service agencies 
320.18  shall continue to provide funds to families receiving state 
320.19  grants on June 30, 1997, if eligibility criteria continue to be 
320.20  met.  Any adjustments to their monthly grant amount must be 
320.21  based on the needs of the family and funding availability. 
320.22     Sec. 12.  Minnesota Statutes 1996, section 252.32, 
320.23  subdivision 3a, is amended to read: 
320.24     Subd. 3a.  [REPORTS AND REIMBURSEMENT ALLOCATIONS.] (a) The 
320.25  commissioner shall specify requirements for quarterly fiscal and 
320.26  annual program reports according to section 256.01, subdivision 
320.27  2, paragraph (17).  Program reports shall include data which 
320.28  will enable the commissioner to evaluate program effectiveness 
320.29  and to audit compliance.  The commissioner shall reimburse 
320.30  county costs on a quarterly basis. 
320.31     (b) Beginning January 1, 1998, the commissioner shall 
320.32  allocate state funds made available under this section to county 
320.33  social service agencies on a calendar year basis.  The 
320.34  commissioner shall allocate to each county first in amounts 
320.35  equal to each county's guaranteed floor as described in clause 
320.36  (1), and second, any remaining funds, after the allocation of 
321.1   funds to the newly participating counties as provided for in 
321.2   clause (3), shall be allocated in proportion to each county's 
321.3   total number of families receiving a grant on July 1 of the most 
321.4   recent calendar year.  
321.5      (1) Each county's guaranteed floor shall be calculated as 
321.6   follows:  
321.7      (i) 95 percent of the county's allocation received in the 
321.8   preceding calendar year.  For the calendar year 1998 allocation, 
321.9   the preceding calendar year shall be considered to be double the 
321.10  six-month allocation as provided in clause (2); 
321.11     (ii) when the amount of funds available for allocation is 
321.12  less than the amount available in the preceding year, each 
321.13  county's previous year allocation shall be reduced in proportion 
321.14  to the reduction in statewide funding, for the purpose of 
321.15  establishing the guaranteed floor.  
321.16     (2) For the period July 1, 1997, to December 31, 1997, the 
321.17  commissioner shall allocate to each county an amount equal to 
321.18  the actual, state approved, grants issued to the families for 
321.19  the month of January 1997, multiplied by six.  This six-month 
321.20  allocation shall be combined with the calendar year 1998 
321.21  allocation and be administered as an 18-month allocation.  
321.22     (3) At the commissioner's discretion, funds may be 
321.23  allocated to any nonparticipating county that requests an 
321.24  allocation under this section.  Allocations to newly 
321.25  participating counties are dependent upon the availability of 
321.26  funds, as determined by the actual expenditure amount of the 
321.27  participating counties for the most recently completed calendar 
321.28  year.  
321.29     (4) The commissioner shall regularly review the use of 
321.30  family support fund allocations by county.  The commissioner may 
321.31  reallocate unexpended or unencumbered money at any time to those 
321.32  counties that have a demonstrated need for additional funding.  
321.33     (c) County allocations under this section will be adjusted 
321.34  for transfers that occur pursuant to section 256.476. 
321.35     Sec. 13.  Minnesota Statutes 1996, section 252.32, 
321.36  subdivision 3c, is amended to read: 
322.1      Subd. 3c.  [COUNTY BOARD RESPONSIBILITIES.] County boards 
322.2   receiving funds under this section shall:  
322.3      (1) determine the needs of families for services in 
322.4   accordance with section 256B.092 or 256E.08 and any rules 
322.5   adopted under those sections; 
322.6      (2) determine the eligibility of all persons proposed for 
322.7   program participation; 
322.8      (3) recommend for approval all approve a plan for items and 
322.9   services to be reimbursed and inform families of 
322.10  the commissioner's county's approval decision; 
322.11     (4) issue support grants directly to, or on behalf of, 
322.12  eligible families; 
322.13     (5) inform recipients of their right to appeal under 
322.14  subdivision 3e; 
322.15     (6) submit quarterly financial reports under subdivision 3b 
322.16  and indicate on the screening documents the annual grant level 
322.17  for the recipients; and 
322.18     (7) coordinate services with other programs offered by the 
322.19  county. 
322.20     Sec. 14.  Minnesota Statutes 1996, section 252.32, 
322.21  subdivision 5, is amended to read: 
322.22     Subd. 5.  [COMPLIANCE.] If a county board or grantee does 
322.23  not comply with this section and the rules adopted by the 
322.24  commissioner of human services, the commissioner may recover, 
322.25  suspend, or withhold payments. 
322.26     Sec. 15.  Minnesota Statutes 1996, section 254.04, is 
322.27  amended to read: 
322.28     254.04 [TREATMENT OF CHEMICALLY DEPENDENT PERSONS.] 
322.29     The commissioner of human services is hereby authorized to 
322.30  continue the treatment of chemically dependent persons at 
322.31  Ah-Gwah-Ching and Moose Lake area programs as well as at the 
322.32  regional treatment centers located at Anoka, Brainerd, Fergus 
322.33  Falls, Moose Lake, St. Peter, and Willmar as specified in 
322.34  section 245.652.  During the year ending June 30, 1994, the 
322.35  commissioner shall relocate, in the catchment area served by the 
322.36  Moose Lake regional treatment center, two state-operated 
323.1   off-campus programs designed to serve patients who are relocated 
323.2   from the Moose Lake regional treatment center.  One program 
323.3   shall be a 35-bed program for women who are chemically 
323.4   dependent; the other shall be a 25-bed program for men who are 
323.5   chemically dependent.  The facility space housing the Liberalis 
323.6   chemical dependency program (building C-35) and the men's 
323.7   chemical dependency program (4th floor main) may not be vacated 
323.8   until suitable off-campus space for the women's chemical 
323.9   dependency program of 35 beds and the men's chemical dependency 
323.10  program of 25 beds is located and clients and staff are 
323.11  relocated. 
323.12     Sec. 16.  Minnesota Statutes 1996, section 254B.02, 
323.13  subdivision 3, is amended to read: 
323.14     Subd. 3.  [RESERVE ACCOUNT.] The commissioner shall 
323.15  allocate money from the reserve account to counties that, during 
323.16  the current fiscal year, have met or exceeded the base level of 
323.17  expenditures for eligible chemical dependency services from 
323.18  local money.  The commissioner shall establish the base level 
323.19  for fiscal year 1988 as the amount of local money used for 
323.20  eligible services in calendar year 1986.  In later years, the 
323.21  base level must be increased in the same proportion as state 
323.22  appropriations to implement Laws 1986, chapter 394, sections 8 
323.23  to 20, are increased.  The base level must be decreased if the 
323.24  fund balance from which allocations are made under section 
323.25  254B.02, subdivision 1, is decreased in later years.  The local 
323.26  match rate for the reserve account is the same rate as applied 
323.27  to the initial allocation.  Reserve account payments must not be 
323.28  included when calculating the county adjustments made according 
323.29  to subdivision 2.  For counties providing medical assistance or 
323.30  general assistance medical care through managed care plans on 
323.31  January 1, 1996, the base year is fiscal year 1995.  For 
323.32  counties beginning provision of managed care after January 1, 
323.33  1996, the base year is the most recent fiscal year before 
323.34  enrollment in managed care begins.  For counties providing 
323.35  managed care, the base level will be increased or decreased in 
323.36  proportion to changes in the fund balance from which allocations 
324.1   are made under subdivision 2, but will be additionally increased 
324.2   or decreased in proportion to the change in county adjusted 
324.3   population made in subdivision 1, paragraphs (b) and (c). 
324.4      Sec. 17.  Minnesota Statutes 1996, section 254B.03, 
324.5   subdivision 1, is amended to read: 
324.6      Subdivision 1.  [LOCAL AGENCY DUTIES.] (a) Every local 
324.7   agency shall provide chemical dependency services to persons 
324.8   residing within its jurisdiction who meet criteria established 
324.9   by the commissioner for placement in a chemical dependency 
324.10  residential or nonresidential treatment service.  Chemical 
324.11  dependency money must be administered by the local agencies 
324.12  according to law and rules adopted by the commissioner under 
324.13  sections 14.001 to 14.69. 
324.14     (b) In order to contain costs, the county board shall, with 
324.15  the approval of the commissioner of human services, select 
324.16  eligible vendors of chemical dependency services who can provide 
324.17  economical and appropriate treatment.  Unless the local agency 
324.18  is a social services department directly administered by a 
324.19  county or human services board, the local agency shall not be an 
324.20  eligible vendor under section 254B.05.  The commissioner may 
324.21  approve proposals from county boards to provide services in an 
324.22  economical manner or to control utilization, with safeguards to 
324.23  ensure that necessary services are provided.  If a county 
324.24  implements a demonstration or experimental medical services 
324.25  funding plan, the commissioner shall transfer the money as 
324.26  appropriate.  If a county selects a vendor located in another 
324.27  state, the county shall ensure that the vendor is in compliance 
324.28  with the rules governing licensure of programs located in the 
324.29  state. 
324.30     (c) For the biennium ending June 30, 1999, the rate for 
324.31  vendors may not increase more than three percent above the rate 
324.32  approved on January 1, 1997.  Residential vendors may not 
324.33  receive a rate increase in the biennium ending June 30, 1999, if 
324.34  the rate charged on January 1, 1997, exceeds the statewide 
324.35  median rate for that level of care.  Rates for residential 
324.36  levels of care for vendors who are enrolled after January 1, 
325.1   1997, may not exceed the median rate for each level of care 
325.2   provided. 
325.3      (c) (d) A culturally specific vendor that provides 
325.4   assessments under a variance under Minnesota Rules, part 
325.5   9530.6610, shall be allowed to provide assessment services to 
325.6   persons not covered by the variance. 
325.7      Sec. 18.  Minnesota Statutes 1996, section 256B.0625, 
325.8   subdivision 15, is amended to read: 
325.9      Subd. 15.  [HEALTH PLAN PREMIUMS AND COPAYMENTS.] Medical 
325.10  assistance covers health care prepayment plan premiums, 
325.11  insurance premiums, and copayments if determined to be 
325.12  cost-effective by the commissioner.  Effective for all premium 
325.13  payments due on or after January 1, 1998, medical assistance 
325.14  does not cover premiums for health insurance policies offered by 
325.15  the Minnesota comprehensive health association under chapter 62E.
325.16  For purposes of obtaining Medicare part A and part B, and 
325.17  copayments, expenditures may be made even if federal funding is 
325.18  not available. 
325.19     Sec. 19.  [256B.095] [THREE-YEAR QUALITY ASSURANCE PILOT 
325.20  PROJECT ESTABLISHED.] 
325.21     Effective July 1, 1998, an alternative quality assurance 
325.22  licensing system pilot project for programs for persons with 
325.23  developmental disabilities is established in Dodge, Fillmore, 
325.24  Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, Steele, 
325.25  Wabasha, and Winona counties for the purpose of improving the 
325.26  quality of services provided to persons with developmental 
325.27  disabilities.  A county, at its option, may choose to have all 
325.28  programs for persons with developmental disabilities located 
325.29  within the county licensed under chapter 245A using standards 
325.30  determined under the alternative quality assurance licensing 
325.31  system pilot project or may continue regulation of these 
325.32  programs under the licensing system operated by the 
325.33  commissioner.  The pilot project expires on June 30, 2001. 
325.34     Sec. 20.  [256B.0951] [QUALITY ASSURANCE COMMISSION.] 
325.35     Subdivision 1.  [MEMBERSHIP.] The region 10 quality 
325.36  assurance commission is established.  The commission consists of 
326.1   at least 13 but not more than 20 members as follows:  at least 
326.2   three but not more than five members representing advocacy 
326.3   organizations; at least three but not more than five members 
326.4   representing consumers, families, and their legal 
326.5   representatives; at least three but not more than five members 
326.6   representing service providers; and at least three but not more 
326.7   than five members representing counties.  Initial membership of 
326.8   the commission shall be recruited and approved by the region 10 
326.9   stakeholders group.  Prior to approving the commission's 
326.10  membership, the stakeholders group shall provide to the 
326.11  commissioner a list of the membership in the stakeholders group, 
326.12  as of February 1, 1997, a brief summary of meetings held by the 
326.13  group since July 1, 1996, and copies of any materials prepared 
326.14  by the group for public distribution.  The first commission 
326.15  shall establish membership guidelines for the transition and 
326.16  recruitment of membership for the commission's ongoing 
326.17  existence.  Members of the commission who do not receive a 
326.18  salary or wages from an employer for time spent on commission 
326.19  duties may receive a per diem payment when performing commission 
326.20  duties and functions.  All members may be reimbursed for 
326.21  expenses related to commission activities.  Notwithstanding the 
326.22  provisions of section 15.059, subdivision 5, the commission 
326.23  expires on June 30, 2001. 
326.24     Subd. 2.  [AUTHORITY TO HIRE STAFF.] The commission may 
326.25  hire staff to perform the duties assigned in this section.  
326.26     Subd. 3.  [COMMISSION DUTIES.] (a) By October 1, 1997, the 
326.27  commission, in cooperation with the commissioners of human 
326.28  services and health, shall do the following:  (1) approve an 
326.29  alternative quality assurance licensing system based on the 
326.30  evaluation of outcomes; (2) approve measurable outcomes in the 
326.31  areas of health and safety, consumer evaluation, education and 
326.32  training, providers, and systems that shall be evaluated during 
326.33  the alternative licensing process; and (3) establish variable 
326.34  licensure periods not to exceed three years based on outcomes 
326.35  achieved.  For purposes of this subdivision, "outcome" means the 
326.36  behavior, action, or status of a person that can be observed or 
327.1   measured and can be reliably and validly determined. 
327.2      (b) By January 15, 1998, the commission shall approve, in 
327.3   cooperation with the commissioner of human services, a training 
327.4   program for members of the quality assurance teams established 
327.5   under section 256B.0952. 
327.6      Subd. 4.  [COMMISSION'S AUTHORITY TO RECOMMEND VARIANCES OF 
327.7   LICENSING STANDARDS.] The commission may recommend to the 
327.8   commissioners of human services and health variances from the 
327.9   standards governing licensure of programs for persons with 
327.10  developmental disabilities in order to improve the quality of 
327.11  services by implementing an alternative developmental 
327.12  disabilities licensing system if the commission determines that 
327.13  the alternative licensing system does not affect the health or 
327.14  safety of persons being served by the licensed program nor 
327.15  compromise the qualifications of staff to provide services. 
327.16     Subd. 5.  [VARIANCE OF CERTAIN STANDARDS PROHIBITED.] The 
327.17  safety standards, rights, or procedural protections under 
327.18  sections 245.825; 245.91 to 245.97; 245A.04, subdivisions 3, 3a, 
327.19  3b, and 3c; 245A.09, subdivision 2, paragraph (c), clauses (2) 
327.20  and (5); 245A.12; 245A.13; 252.41, subdivision 9; 256B.092, 
327.21  subdivisions 1b, clause (7), and 10; 626.556; 626.557, and 
327.22  procedures for the monitoring of psychotropic medications shall 
327.23  not be varied under the alternative licensing system pilot 
327.24  project.  The commission may make recommendations to the 
327.25  commissioners of human services and health or to the legislature 
327.26  regarding alternatives to or modifications of the rules 
327.27  referenced in this subdivision. 
327.28     Subd. 6.  [PROGRESS REPORT.] The commission shall submit a 
327.29  progress report to the legislature on pilot project development 
327.30  by January 15, 1998.  The report shall include recommendations 
327.31  on any legislative changes necessary to improve cooperation 
327.32  between the commission and the commissioners of human services 
327.33  and health. 
327.34     Sec. 21.  [256B.0952] [COUNTY DUTIES; QUALITY ASSURANCE 
327.35  TEAMS.] 
327.36     Subdivision 1.  [NOTIFICATION.] By January 15, 1998, each 
328.1   affected county shall notify the commission and the 
328.2   commissioners of human services and health as to whether it 
328.3   chooses to implement on July 1, 1998, the alternative licensing 
328.4   system for the pilot project.  A county that does not implement 
328.5   the alternative licensing system on July 1, 1998, may give 
328.6   notice to the commission and the commissioners by January 15, 
328.7   1999, or January 15, 2000, that it will implement the 
328.8   alternative licensing system on the following July 1.  A county 
328.9   that implements the alternative licensing system commits to 
328.10  participate until June 30, 2001.  
328.11     Subd. 2.  [APPOINTMENT OF REVIEW COUNCIL; DUTIES OF 
328.12  COUNCIL.] A county or group of counties that chooses to 
328.13  participate in the alternative licensing system shall appoint a 
328.14  quality assurance review council comprised of advocates; 
328.15  consumers, families, and their legal representatives; providers; 
328.16  and county staff.  The council shall: 
328.17     (1) review summary reports from quality assurance team 
328.18  reviews and make recommendations to counties regarding program 
328.19  licensure; 
328.20     (2) make recommendations to the commission regarding the 
328.21  alternative licensing system and quality assurance process; and 
328.22     (3) resolve complaints between the quality assurance teams, 
328.23  counties, providers, and consumers, families, and their legal 
328.24  representatives. 
328.25     Subd. 3.  [NOTICE TO COMMISSIONERS.] The county, based on 
328.26  reports from quality assurance managers and recommendations from 
328.27  the quality assurance review council regarding the findings of 
328.28  quality assurance teams, shall notify the commissioners of human 
328.29  services and health regarding whether facilities, programs, or 
328.30  services have met the outcome standards for licensure and are 
328.31  eligible for payment. 
328.32     Subd. 4.  [APPOINTMENT OF QUALITY ASSURANCE MANAGER.] (a) A 
328.33  county or group of counties that chooses to participate in the 
328.34  alternative licensing system shall designate a quality assurance 
328.35  manager and shall establish quality assurance teams in 
328.36  accordance with subdivision 5.  The manager shall recruit, 
329.1   train, and assign duties to the quality assurance team members.  
329.2   In assigning team members to conduct the quality assurance 
329.3   process at a facility, program, or service, the manager shall 
329.4   take into account the size of the service provider, the number 
329.5   of services to be reviewed, the skills necessary for team 
329.6   members to complete the process, and other relevant factors.  
329.7   The manager shall ensure that no team member has a financial, 
329.8   personal, or family relationship with the facility, program, or 
329.9   service being reviewed or with any clients of the facility, 
329.10  program, or service. 
329.11     (b) Quality assurance teams shall report the findings of 
329.12  their quality assurance reviews to the quality assurance manager.
329.13  The quality assurance manager shall provide the report from the 
329.14  quality assurance team to the county and commissioners of human 
329.15  services and health and a summary of the report to the quality 
329.16  assurance review council.  
329.17     Subd. 5.  [QUALITY ASSURANCE TEAMS.] Quality assurance 
329.18  teams shall be comprised of county staff; providers; consumers, 
329.19  families, and their legal representatives; members of advocacy 
329.20  organizations; and other involved community members.  Team 
329.21  members must satisfactorily complete the training program 
329.22  approved by the commission and must demonstrate 
329.23  performance-based competency.  Team members are not considered 
329.24  to be county employees for purposes of workers' compensation, 
329.25  unemployment compensation, or state retirement laws solely on 
329.26  the basis of participation on a quality assurance team.  The 
329.27  county may pay a per diem to team members who do not receive a 
329.28  salary or wages from an employer for time spent on alternative 
329.29  quality assurance process matters.  All team members may be 
329.30  reimbursed for expenses related to their participation in the 
329.31  alternative process. 
329.32     Subd. 6.  [LICENSING FUNCTIONS.] Participating counties 
329.33  shall perform licensing functions and activities as delegated by 
329.34  the commissioner of human services in accordance with section 
329.35  245A.16. 
329.36     Sec. 22.  [256B.0953] [QUALITY ASSURANCE PROCESS.] 
330.1      Subdivision 1.  [PROCESS COMPONENTS.] (a) The quality 
330.2   assurance licensing process consists of an evaluation by a 
330.3   quality assurance team of the facility, program, or service 
330.4   according to outcome-based measurements.  The process must 
330.5   include an evaluation of a random sample of program consumers.  
330.6   The sample must be representative of each service provided.  The 
330.7   sample size must be at least five percent of consumers but not 
330.8   less than three consumers.  
330.9      (b) All consumers must be given the opportunity to be 
330.10  included in the quality assurance process in addition to those 
330.11  chosen for the random sample. 
330.12     Subd. 2.  [LICENSURE PERIODS.] (a) In order to be licensed 
330.13  under the alternative quality assurance process, a facility, 
330.14  program, or service must satisfy the health and safety outcomes 
330.15  approved for the pilot project. 
330.16     (b) Licensure shall be approved for periods of one to three 
330.17  years for a facility, program, or service that satisfies the 
330.18  requirements of paragraph (a) and achieves the outcome 
330.19  measurements in the categories of consumer evaluation, education 
330.20  and training, providers, and systems. 
330.21     Subd. 3.  [APPEALS PROCESS.] A facility, program, or 
330.22  service may contest a licensing decision of the quality 
330.23  assurance team as permitted under chapter 245A. 
330.24     Sec. 23.  [256B.0954] [CERTAIN PERSONS DEFINED AS MANDATED 
330.25  REPORTERS.] 
330.26     Members of the quality assurance commission established 
330.27  under section 256B.0951, members of quality assurance review 
330.28  councils established under section 256B.0952, quality assurance 
330.29  managers appointed under section 256B.0952, and members of 
330.30  quality assurance teams established under section 256B.0952 are 
330.31  mandated reporters as that term is defined in sections 626.556, 
330.32  subdivision 3, and 626.5572, subdivision 16. 
330.33     Sec. 24.  [256B.0955] [DUTIES OF THE COMMISSIONER OF HUMAN 
330.34  SERVICES.] 
330.35     (a) Effective July 1, 1998, the commissioner of human 
330.36  services shall delegate authority to perform licensing functions 
331.1   and activities, in accordance with section 245A.16, to counties 
331.2   participating in the alternative licensing system.  The 
331.3   commissioner shall not license or reimburse a facility, program, 
331.4   or service for persons with developmental disabilities in a 
331.5   county that participates in the alternative licensing system if 
331.6   the commissioner has received from the appropriate county 
331.7   notification that the facility, program, or service has been 
331.8   reviewed by a quality assurance team and has failed to qualify 
331.9   for licensure. 
331.10     (b) The commissioner may conduct random licensing 
331.11  inspections based on outcomes adopted under section 256B.0951 at 
331.12  facilities, programs, and services governed by the alternative 
331.13  licensing system.  The role of such random inspections shall be 
331.14  to verify that the alternative licensing system protects the 
331.15  safety and well-being of consumers and maintains the 
331.16  availability of high-quality services for persons with 
331.17  developmental disabilities.  
331.18     (c) The commissioner shall provide technical assistance and 
331.19  support or training to the alternative licensing system pilot 
331.20  project. 
331.21     (d) The commissioner and the commission shall establish an 
331.22  ongoing evaluation process for the alternative licensing system. 
331.23     (e) The commissioner shall contract with an independent 
331.24  entity to conduct a financial review of the alternative 
331.25  licensing system, including an evaluation of possible budgetary 
331.26  savings within the department of human services and the 
331.27  department of health as a result of implementation of the 
331.28  alternative quality assurance licensing system.  This review 
331.29  must be completed by December 15, 2000.  
331.30     (f) The commissioner and the commission shall submit a 
331.31  report to the legislature by January 15, 2001, on the results of 
331.32  the evaluation process of the alternative licensing system, a 
331.33  summary of the results of the independent financial review, and 
331.34  a recommendation on whether the pilot project should be extended 
331.35  beyond June 30, 2001. 
331.36     Sec. 25.  Minnesota Statutes 1996, section 256B.49, 
332.1   subdivision 1, is amended to read: 
332.2      Subdivision 1.  [STUDY; WAIVER APPLICATION.] The 
332.3   commissioner shall authorize a study to assess the need for home 
332.4   and community-based waivers for chronically ill children who 
332.5   have been and will continue to be hospitalized without a waiver, 
332.6   and for disabled individuals under the age of 65 who are likely 
332.7   to reside in an acute care or nursing home facility in the 
332.8   absence of a waiver.  If a need for these waivers can be 
332.9   demonstrated, the commissioner shall apply for federal waivers 
332.10  necessary to secure, to the extent allowed by law, federal 
332.11  participation under United States Code, title 42, sections 
332.12  1396-1396p, as amended through December 31, 1982, for the 
332.13  provision of home and community-based services to chronically 
332.14  ill children who, in the absence of such a waiver, would remain 
332.15  in an acute care setting, and to disabled individuals under the 
332.16  age of 65 who, in the absence of a waiver, would reside in an 
332.17  acute care or nursing home setting.  If the need is 
332.18  demonstrated, the commissioner shall request a waiver under 
332.19  United States Code, title 42, sections 1396-1396p, to allow 
332.20  medicaid eligibility for blind or disabled children with 
332.21  ineligible parents where income deemed from the parents would 
332.22  cause the applicant to be ineligible for supplemental security 
332.23  income if the family shared a household and to furnish necessary 
332.24  services in the home or community to disabled individuals under 
332.25  the age of 65 who would be eligible for medicaid if 
332.26  institutionalized in an acute care or nursing home setting. 
332.27  These waivers are requested to furnish necessary services in the 
332.28  home and community setting to children or disabled adults under 
332.29  age 65 who are medicaid eligible when institutionalized in an 
332.30  acute care or nursing home setting.  The commissioner shall 
332.31  assure that the cost of home and community-based care will not 
332.32  be more than the cost of care if the eligible child or disabled 
332.33  adult under age 65 were to remain institutionalized.  The 
332.34  average monthly limit for the cost of home and community-based 
332.35  services to a community alternative care waiver client, 
332.36  determined on a 12-month basis, shall not exceed the statewide 
333.1   average medical assistance adjusted base year operating cost for 
333.2   nursing and accommodation services under sections 256.9685 to 
333.3   256.969 for the diagnostic category to which the waiver client 
333.4   would be assigned except the admission and outlier rates shall 
333.5   be converted to an overall per diem.  The average monthly limit 
333.6   for the cost of services to a traumatic brain injury 
333.7   neurobehavioral hospital waiver client, determined on a 12-month 
333.8   basis, shall not exceed the statewide average medical assistance 
333.9   adjusted base-year operating cost for nursing and accommodation 
333.10  services of neurobehavioral rehabilitation programs in Medicare 
333.11  designated long-term hospitals under sections 256.9685 to 
333.12  256.969.  The following costs must be included in determining 
333.13  the total average monthly costs for a waiver client:  
333.14     (1) cost of all waivered services; and 
333.15     (2) cost of skilled nursing, private duty nursing, home 
333.16  health aide, and personal care services reimbursable by medical 
333.17  assistance.  
333.18     The commissioner of human services shall seek federal 
333.19  waivers as necessary to implement the average monthly limit.  
333.20  The commissioner shall seek to amend the federal waivers 
333.21  obtained under this section to apply criteria to protect against 
333.22  spousal impoverishment as authorized under United States Code, 
333.23  title 42, section 1396r-5, and as implemented in sections 
333.24  256B.0575, 256B.058, and 256B.059, except that the amendment 
333.25  shall seek to add to the personal needs allowance permitted in 
333.26  section 256B.0575, an amount equivalent to the group residential 
333.27  housing rate as set by section 256I.03, subdivision 5. 
333.28     Sec. 26.  Minnesota Statutes 1996, section 256D.03, 
333.29  subdivision 3b, is amended to read: 
333.30     Subd. 3b.  [COOPERATION.] General assistance or general 
333.31  assistance medical care applicants and recipients must cooperate 
333.32  with the state and local agency to identify potentially liable 
333.33  third-party payors and assist the state in obtaining third-party 
333.34  payments.  Cooperation includes identifying any third party who 
333.35  may be liable for care and services provided under this chapter 
333.36  to the applicant, recipient, or any other family member for whom 
334.1   application is made and providing relevant information to assist 
334.2   the state in pursuing a potentially liable third party.  General 
334.3   assistance medical care applicants and recipients must cooperate 
334.4   by providing information about any group health plan in which 
334.5   they may be eligible to enroll.  They must cooperate with the 
334.6   state and local agency in determining if the plan is 
334.7   cost-effective.  If the plan is determined cost-effective and 
334.8   the premium will be paid by the state or local agency or is 
334.9   available at no cost to the person, they must enroll or remain 
334.10  enrolled in the group health plan.  Effective for all premium 
334.11  payments due on or after January 1, 1998, general assistance 
334.12  medical care does not pay for premiums for health insurance 
334.13  offered by the Minnesota comprehensive health association under 
334.14  chapter 62E.  Cost-effective insurance premiums approved for 
334.15  payment by the state agency and paid by the local agency are 
334.16  eligible for reimbursement according to subdivision 6.  
334.17     Sec. 27.  Laws 1995, chapter 207, article 8, section 41, 
334.18  subdivision 2, is amended to read: 
334.19     Subd. 2.  [PROGRAM DESIGN AND IMPLEMENTATION.] (a) The 
334.20  pilot projects shall be established to design, plan, and improve 
334.21  the mental health service delivery system for adults with 
334.22  serious and persistent mental illness that would: 
334.23     (1) provide an expanded array of services from which 
334.24  clients can choose services appropriate to their needs; 
334.25     (2) be based on purchasing strategies that improve access 
334.26  and coordinate services without cost shifting; 
334.27     (3) incorporate existing state facilities and resources 
334.28  into the community mental health infrastructure through creative 
334.29  partnerships with local vendors; and 
334.30     (4) utilize existing categorical funding streams and 
334.31  reimbursement sources in combined and creative ways, except 
334.32  appropriations to regional treatment centers and all funds that 
334.33  are attributable to the operation of state-operated services are 
334.34  excluded unless appropriated specifically by the legislature for 
334.35  a purpose consistent with this section. 
334.36     (b) All projects funded by January 1, 1997, must complete 
335.1   their the planning phase and be operational by June 30, 1997; 
335.2   all projects funded by January 1, 1998, must be operational by 
335.3   June 30, 1998. 
335.4      Sec. 28.  [BRAINERD REGIONAL HUMAN SERVICES CENTER 
335.5   GOVERNANCE DEMONSTRATION PROJECT.] 
335.6      (a) The commissioner of human services is authorized to 
335.7   establish a planning group comprised of representatives of the 
335.8   Brainerd Regional Human Services Center and the 12 counties 
335.9   within the catchment area of the Brainerd Regional Human 
335.10  Services Center, to evaluate the feasibility of, and propose a 
335.11  model for regional governance of the regional treatment center.  
335.12  Establishment of a governance model that will enable further 
335.13  integration of funding and service systems to ensure that 
335.14  persons with mental illness or developmental disabilities in the 
335.15  region are served according to law in a cost-efficient and 
335.16  cost-effective manner shall be the focal point of this planning 
335.17  effort. 
335.18     (b) The counties of Aitkin, Beltrami, Benton, Cass, 
335.19  Clearwater, Crow Wing, Hubbard, Lake of the Woods, Morrison, 
335.20  Stearns, Todd, and Wadena and the Brainerd Regional Human 
335.21  Services Center shall be represented on the planning group.  The 
335.22  chief executive officer of the Brainerd Regional Human Services 
335.23  Center shall convene the initial meeting of the planning group 
335.24  no later than July 1, 1997.  The planning group shall select 
335.25  from among its members a chairperson, identify other stakeholder 
335.26  involvement in the planning process, and establish a project 
335.27  work plan and meeting schedule.  If the planning group 
335.28  determines that it is feasible to proceed with regional 
335.29  governance of the Brainerd Regional Human Services Center, it 
335.30  shall formulate and make recommendations on the governance 
335.31  structure and its operating principles to the commissioner of 
335.32  human services no later than May 15, 1998, for review and 
335.33  approval by the commissioner prior to implementation of the 
335.34  governance structure on July 1, 1998. 
335.35     (c) The design of the governance model must lead to a 
335.36  mental health and developmental disabilities service system that 
336.1   is regionally based and community-focused and includes the 
336.2   long-term psychiatric hospital services of the regional 
336.3   treatment center as a component part of this locally defined 
336.4   system.  The governing body will have decision-making authority 
336.5   over the budget of the Brainerd Regional Human Services Center 
336.6   and any related funds which county members agree to bring under 
336.7   the auspices of the governance structure for purposes of this 
336.8   demonstration project.  The Brainerd Regional Human Services 
336.9   Center portion of the regional treatment center biennial 
336.10  appropriation for mental health and developmental disabilities 
336.11  programs shall be placed under the management of the regional 
336.12  governance body in accordance with the demonstration project's 
336.13  agreed upon implementation schedule.  Project planning should 
336.14  reflect the commitment to partnership between the state and 
336.15  counties in considering those aspects of the service delivery in 
336.16  the region that might be brought to a broader governance 
336.17  structure in order to maximize benefits to clients for dollars 
336.18  expended in the system.  Design of the project to enhance 
336.19  regional flexibility and support the community-based system 
336.20  infrastructure will improve the regional capacity to meet the 
336.21  needs of persons with mental illness and developmental 
336.22  disabilities and assure the availability of safety net services 
336.23  within the regional service system. 
336.24     (d) Implementation of the regional governance project will 
336.25  not proceed without the affirmative recommendation of the 
336.26  project planning group.  The planning group may discontinue the 
336.27  project at any point that it collectively determines development 
336.28  of a regional governance model to be unworkable by providing the 
336.29  commissioner of human services 30 days' written notice and an 
336.30  explanation of the reasons that prevented the project from going 
336.31  forward. 
336.32     Sec. 29.  [MCHA TERMINATION NOTICE.] 
336.33     The Minnesota comprehensive health association, in 
336.34  consultation with the commissioner of human services, shall 
336.35  provide written notice to all persons whose coverage under the 
336.36  comprehensive health insurance plan terminates due to the change 
337.1   in policy described in sections 18 and 27 and shall assist these 
337.2   individuals in securing health coverage in the private market. 
337.3      The notice must include the following information: 
337.4      (1) the reason for termination; 
337.5      (2) a description of the eligibility requirements for the 
337.6   comprehensive health insurance plan; 
337.7      (3) a description of medical assistance and general 
337.8   assistance medical care eligibility categories; 
337.9      (4) a description of the participation requirements to the 
337.10  prepaid medical assistance program, prepaid general assistance 
337.11  medical care, and exemptions from participation due to 
337.12  disability as determined by the social security administration; 
337.13  and 
337.14     (5) a telephone number for the department of human services 
337.15  for specific questions regarding the medical assistance and 
337.16  general assistance medical care program. 
337.17  Notice must be given at least six months before coverage is 
337.18  terminated. 
337.19     The commissioner of human services shall release to the 
337.20  association any data necessary to provide the notice required in 
337.21  this section. 
337.22     Sec. 30.  [NAMES REQUIRED ON GRAVES.] 
337.23     Unless the individual's family indicates otherwise to the 
337.24  appropriate authority, the commissioner of human services with 
337.25  assistance of the communities in which regional treatment 
337.26  centers are located and in consultation with the state council 
337.27  on disability shall replace numbers with the names of 
337.28  individuals whose graves are located at regional treatment 
337.29  centers operated by the commissioner or formerly operated by the 
337.30  commissioner.  The commissioner and the state council on 
337.31  disability shall develop a plan to accomplish this 
337.32  systematically over a five-year period.  The individual names 
337.33  may be placed on a central marker or memorial for a designated 
337.34  cemetery.  
337.35     Sec. 31.  [WAIVER AMENDMENT.] 
337.36     By July 15, 1997, the commissioner of human services shall 
338.1   submit proposed amendments to the Health Care Financing 
338.2   Administration for changes in the home and community-based 
338.3   waiver for persons with mental retardation or a related 
338.4   condition that maximize the number of persons served within the 
338.5   limits of appropriations and divert persons from institutional 
338.6   placement.  The commissioner shall monitor county utilization of 
338.7   allocated resources and, as appropriate, reassign resources not 
338.8   utilized.  Priority consideration for the reassignment of 
338.9   resources shall be given to counties who enter into written 
338.10  agreements with other counties to jointly plan, request 
338.11  resources, and develop services for persons with mental 
338.12  retardation or a related condition who are screened and waiting 
338.13  for waivered services.  In addition to the priorities listed in 
338.14  Minnesota Rules, part 9525.1880, the commissioner shall also 
338.15  give priority consideration to persons whose living situations 
338.16  are unstable due to the age or incapacity of the primary 
338.17  caregiver.  The commissioner shall report to the chairs of the 
338.18  senate health and family security budget division and the house 
338.19  health and human services finance division by March 1, 1998, on 
338.20  the results of the waiver amendment, the authorization and 
338.21  utilization of waivered services for persons with mental 
338.22  retardation or a related condition, including crisis respite 
338.23  services, plans to increase the number of counties working 
338.24  together, additional persons served by the reassignment of 
338.25  resources, and options which would allow an increased number of 
338.26  persons to be served within the existing appropriation. 
338.27     Sec. 32.  [REQUEST FOR WAIVER.] 
338.28     By January 1, 1998, the commissioner of human services or 
338.29  health shall request a waiver from the federal Department of 
338.30  Health and Human Services to permit the use of the alternative 
338.31  quality assurance system to license and certify intermediate 
338.32  care facilities for persons with mental retardation.  
338.33     Sec. 33.  [REPEALER.] 
338.34     Minnesota Statutes 1996, sections 252.32, subdivision 4; 
338.35  and 256B.501, subdivision 5c, are repealed. 
338.36     Sec. 34.  [EFFECTIVE DATE.] 
339.1      Sections 2 to 5 and 15 are effective the day following 
339.2   final enactment.  
339.3                              ARTICLE 8
339.4         DEMONSTRATION PROJECT FOR PERSONS WITH DISABILITIES
339.5      Section 1.  [256B.77] [COORDINATED SERVICE DELIVERY SYSTEM 
339.6   FOR PEOPLE WITH DISABILITIES.] 
339.7      Subdivision 1.  [DEMONSTRATION PROJECT FOR PEOPLE WITH 
339.8   DISABILITIES.] (a) The commissioner of human services, in 
339.9   cooperation with county authorities, shall develop and implement 
339.10  a demonstration project to create a coordinated service delivery 
339.11  system in which the full medical assistance benefit set for 
339.12  disabled persons eligible for medical assistance is provided and 
339.13  funded on a capitated basis.  The demonstration period shall be 
339.14  a minimum of three years. 
339.15     (b) Each demonstration site shall, under county authority, 
339.16  establish a local group to assist the commissioner in planning, 
339.17  designing, implementing, and evaluating the coordinated service 
339.18  delivery system in their area.  This local group shall include 
339.19  county agencies, providers, consumers, family members, 
339.20  advocates, tribal governments, a local representative of labor, 
339.21  and advocacy organizations, and may include health plan 
339.22  companies.  Consumers, families, and consumer representatives 
339.23  must be involved in the planning, implementation, and evaluation 
339.24  processes for the demonstration project. 
339.25     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
339.26  the following terms have the meanings given: 
339.27     (a) "Acute care" means hospital, physician, and other 
339.28  health and dental services covered in the medical assistance 
339.29  benefit set that are not specified in the intergovernmental 
339.30  contract or service delivery contract as continuing care 
339.31  services. 
339.32     (b) "Additional services" means services developed and 
339.33  provided through the county administrative entity or service 
339.34  delivery organization, which are in addition to the medical 
339.35  assistance benefit set. 
339.36     (c) "Advocate" means an individual who: 
340.1      (1) has been authorized by the enrollee or the enrollee's 
340.2   legal representative to help the enrollee understand information 
340.3   presented and to speak on the enrollee's behalf, based on 
340.4   directions and decisions by the enrollee or the enrollee's legal 
340.5   representative; and 
340.6      (2) represents only the enrollee and the enrollee's legal 
340.7   representative. 
340.8      (d) "Advocacy organization" means an organization whose 
340.9   primary purpose is to advocate for the needs of persons with 
340.10  disabilities. 
340.11     (e) "Alternative services" means services developed and 
340.12  provided through the county administrative entity or service 
340.13  delivery organization that are not part of the medical 
340.14  assistance benefit set. 
340.15     (f) "Commissioner" means the commissioner of human services.
340.16     (g) "Continuing care" means any services, including 
340.17  long-term support services, covered in the medical assistance 
340.18  benefit set that are not specified in the intergovernmental 
340.19  contract or service delivery contract as acute care. 
340.20     (h) "County administrative entity" means the county 
340.21  administrative structure defined and designated by the county 
340.22  authority to implement the demonstration project under the 
340.23  direction of the county authority. 
340.24     (i) "County authority" means the board of county 
340.25  commissioners or a single entity representing multiple boards of 
340.26  county commissioners. 
340.27     (j) "Demonstration period" means the period of time during 
340.28  which county administrative entities or service delivery 
340.29  organizations will provide services to enrollees. 
340.30     (k) "Demonstration site" means the geographic area in which 
340.31  eligible individuals may be included in the demonstration 
340.32  project. 
340.33     (l) "Department" means the department of human services. 
340.34     (m) "Emergency" means a condition that if not immediately 
340.35  treated could cause a person serious physical or mental 
340.36  disability, continuation of severe pain, or death.  Labor and 
341.1   delivery is an emergency if it meets this definition. 
341.2      (n) "Enrollee" means an eligible individual who is enrolled 
341.3   in the demonstration project. 
341.4      (o) "Informed choice" means a voluntary decision made by 
341.5   the enrollee or the enrollee's legal representative, after 
341.6   becoming familiar with the alternatives, and having been 
341.7   provided sufficient relevant written and oral information at an 
341.8   appropriate comprehension level and in a manner consistent with 
341.9   the enrollee's or the enrollee's legal representative's primary 
341.10  mode of communication. 
341.11     (p) "Informed consent" means the written agreement, or an 
341.12  agreement as documented in the record, by a competent enrollee, 
341.13  or an enrollee's legal representative, who: 
341.14     (1) has the capacity to make reasoned decisions based on 
341.15  relevant information; 
341.16     (2) is making decisions voluntarily and without coercion; 
341.17  and 
341.18     (3) has knowledge to make informed choice. 
341.19     (q) "Intergovernmental contract" means the agreement 
341.20  between the commissioner and the county authority. 
341.21     (r) "Legal representative" means an individual who is 
341.22  legally authorized to provide informed consent or make informed 
341.23  choices on a person's behalf.  A legal representative may be one 
341.24  of the following individuals: 
341.25     (1) the parent of a minor who has not been emancipated; 
341.26     (2) a court-appointed guardian or conservator of a person 
341.27  who is 18 years of age or older, in areas where legally 
341.28  authorized to make decisions; 
341.29     (3) a guardian ad litem or special guardian or conservator, 
341.30  in areas where legally authorized to make decisions; 
341.31     (4) legal counsel if so specified by the person; or 
341.32     (5) any other legally authorized individual. 
341.33  The county authority is prohibited from acting as legal 
341.34  representative for any enrollee, as long as the provisions of 
341.35  subdivision 15 are funded. 
341.36     (s) "Life domain areas" include, but are not limited to:  
342.1   home, family, education, employment, social environment, 
342.2   psychological and emotional health, self-care, independence, 
342.3   physical health, need for legal representation and legal needs, 
342.4   financial needs, safety, and cultural identification and 
342.5   spiritual needs. 
342.6      (t) "Medical assistance benefit set" means the services 
342.7   covered under this chapter and accompanying rules which are 
342.8   provided according to the definition of medical necessity in 
342.9   Minnesota Rules, part 9505.0175, subpart 25. 
342.10     (u) "Outcome" means the targeted behavior, action, or 
342.11  status of the enrollee that can be observed and or measured. 
342.12     (v) "Personal support plan" means a document agreed to and 
342.13  signed by the enrollee and the enrollee's legal representative, 
342.14  if any, which describes: 
342.15     (1) the assessed needs and strengths of the enrollee; 
342.16     (2) the outcomes chosen by the enrollee or their legal 
342.17  representative; 
342.18     (3) the amount, type, setting, start date, duration, and 
342.19  frequency of services and supports authorized by the county 
342.20  administrative entity or service delivery organization to 
342.21  achieve the chosen outcomes; 
342.22     (4) a description of needed services and supports that are 
342.23  not the responsibility of the county administrative entity or 
342.24  service delivery organization and plans for addressing those 
342.25  needs; 
342.26     (5) plans for referring to and coordinating between all 
342.27  agencies or individuals providing needed services and supports; 
342.28     (6) the use of regulated treatment; and 
342.29     (7) the transition of a child to the adult service system. 
342.30     (w) "Regulated treatment" means any behaviorally altering 
342.31  medication of any classification or any aversive or deprivation 
342.32  procedure as defined in rules or statutes applicable to eligible 
342.33  individuals. 
342.34     (x) "Service delivery contract" means the agreement between 
342.35  the commissioner or the county authority and the service 
342.36  delivery organization in those areas in which the county 
343.1   authority has provided written approval. 
343.2      (y) "Service delivery organization" means an entity that is 
343.3   licensed as a health maintenance organization under chapter 62D 
343.4   or a community integrated service network under chapter 62N and 
343.5   is under contract with the commissioner or a county authority to 
343.6   participate in the demonstration project.  If authorized in 
343.7   contract by the commissioner or the county authority, a service 
343.8   delivery organization participating in the demonstration project 
343.9   shall have the duties, responsibilities, and obligations defined 
343.10  under subdivisions 8, 9, 18, and 19. 
343.11     (z) "Urgent situation" means circumstances in which care is 
343.12  needed as soon as possible, usually with 24 hours, to protect 
343.13  the health of an enrollee. 
343.14     Subd. 3.  [ASSURANCES TO THE COMMISSIONER OF HEALTH.] A 
343.15  county authority that elects to participate in a demonstration 
343.16  project for people with disabilities under this section is not 
343.17  required to obtain a certificate of authority under chapter 62D 
343.18  or 62N.  A county authority that elects to participate in a 
343.19  demonstration project for people with disabilities under this 
343.20  section must assure the commissioner of health that the 
343.21  requirements of chapters 62D and 62N are met.  All enforcement 
343.22  and rulemaking powers available under chapters 62D and 62N are 
343.23  granted to the commissioner of health with respect to the county 
343.24  authorities that contract with the commissioner to purchase 
343.25  services in a demonstration project for people with disabilities 
343.26  under this section. 
343.27     Subd. 4.  [FEDERAL WAIVERS.] The commissioner, in 
343.28  consultation with county authorities, shall request any 
343.29  authority from the United States Department of Health and Human 
343.30  Services that is necessary to implement the demonstration 
343.31  project under the medical assistance program; and authority to 
343.32  combine Medicaid and Medicare funding for service delivery to 
343.33  eligible individuals who are also eligible for Medicare, only if 
343.34  this authority does not preclude county authority participation 
343.35  under the waiver.  Implementation of these programs may begin 
343.36  without authority to include medicare funding.  The commissioner 
344.1   may authorize county authorities to begin enrollment of eligible 
344.2   individuals upon federal approval but no earlier than July 1, 
344.3   1998. 
344.4      Subd. 5.  [DEMONSTRATION SITES.] The commissioner shall 
344.5   designate up to five demonstration sites with the approval of 
344.6   the county authority.  Demonstration sites may include one 
344.7   county or a multicounty group.  At least one of five sites shall 
344.8   implement a model specifically addressing the needs of eligible 
344.9   individuals with physical disabilities.  By February 1, 1998, 
344.10  the commissioner and the county authorities shall submit to the 
344.11  chairs of the senate committee on health and family security and 
344.12  the house committee on health and human services a phased 
344.13  enrollment plan to ensure an orderly transition which protects 
344.14  the health and safety of enrollees and ensures continuity of 
344.15  services. 
344.16     Subd. 6.  [RESPONSIBILITIES OF THE COUNTY AUTHORITY.] (a) 
344.17  The commissioner may execute an intergovernmental contract with 
344.18  any county authority that demonstrates the ability to arrange 
344.19  for and coordinate services for enrollees covered under this 
344.20  section according to the terms and conditions specified by the 
344.21  commissioner.  With the written consent of the county authority, 
344.22  the commissioner may issue a request for proposals for service 
344.23  delivery organizations to provide portions of the medical 
344.24  assistance benefit set not contracted for by the county 
344.25  authority.  County authorities that do not contract for the full 
344.26  medical assistance benefit set must ensure coordination with the 
344.27  entities responsible for the remainder of the covered services. 
344.28     (b) No less than 90 days before the intergovernmental 
344.29  contract is executed, the county authority shall submit to the 
344.30  commissioner an initial proposal on how it will address the 
344.31  areas listed in this subdivision and subdivisions 1, 7, 8, 9, 
344.32  12, 18, and 19.  The county authority shall submit to the 
344.33  commissioner annual reports describing its progress in 
344.34  addressing these areas. 
344.35     (c) Each county authority shall develop policies to address 
344.36  conflicts of interest, including public guardianship and 
345.1   representative payee issues. 
345.2      (d) Each county authority shall annually evaluate the 
345.3   effectiveness of the service coordination provided according to 
345.4   subdivision 12 and shall take remedial or corrective action if 
345.5   the service coordination does not fulfill the requirements of 
345.6   that subdivision. 
345.7      Subd. 7.  [ELIGIBILITY AND ENROLLMENT.] The commissioner, 
345.8   in consultation with the county authority, shall develop a 
345.9   process for enrolling eligible individuals in the demonstration 
345.10  project.  Enrollment into county administrative entities and 
345.11  service delivery organizations shall be conducted according to 
345.12  the terms of the federal waiver.  Enrollment of eligible 
345.13  individuals under the demonstration project may be phased in 
345.14  with approval of the commissioner.  The commissioner shall 
345.15  ensure that eligibility for medical assistance and enrollment 
345.16  for the person are determined by individuals outside of the 
345.17  county administrative entity. 
345.18     Subd. 7a.  [ELIGIBLE INDIVIDUALS.] (a) Persons are eligible 
345.19  for the demonstration project as provided in this subdivision. 
345.20     (b) "Eligible individuals" means those persons living in 
345.21  the demonstration site who are eligible for medical assistance 
345.22  and are disabled based on a disability determination under 
345.23  section 256B.055, subdivisions 7 and 12, or who are eligible for 
345.24  medical assistance and have been diagnosed as having: 
345.25     (1) serious and persistent mental illness as defined in 
345.26  section 245.462, subdivision 20; 
345.27     (2) severe emotional disturbance as defined in section 
345.28  245.487, subdivision 6; or 
345.29     (3) mental retardation or a related condition as defined in 
345.30  section 252.27, subdivision 1a. 
345.31  Other individuals may be included at the option of the county 
345.32  authority based on agreement with the commissioner. 
345.33     (c) Eligible individuals residing on a federally recognized 
345.34  Indian reservation may be excluded from participation in the 
345.35  demonstration project at the discretion of the tribal government 
345.36  based on agreement with the commissioner, in consultation with 
346.1   the county authority. 
346.2      (d) Eligible individuals include individuals in excluded 
346.3   time status, as defined in chapter 256G.  Enrollees in excluded 
346.4   time at the time of enrollment shall remain in excluded time 
346.5   status as long as they live in the demonstration site and shall 
346.6   be eligible for 90 days after placement outside the 
346.7   demonstration site if they move to excluded time status in a 
346.8   county within Minnesota other than their county of financial 
346.9   responsibility. 
346.10     (e) A person who is a sexual psychopathic personality as 
346.11  defined in section 253B.02, subdivision 18a, or a sexually 
346.12  dangerous person as defined in section 253B.02, subdivision 18b, 
346.13  is excluded from enrollment in the demonstration project. 
346.14     Subd. 8.  [RESPONSIBILITIES OF THE COUNTY ADMINISTRATIVE 
346.15  ENTITY.] (a) The county administrative entity shall meet the 
346.16  requirements of this subdivision, unless the county authority or 
346.17  the commissioner, with written approval of the county authority, 
346.18  enters into a service delivery contract with a service delivery 
346.19  organization for any or all of the requirements contained in 
346.20  this subdivision. 
346.21     (b) The county administrative entity shall enroll eligible 
346.22  individuals regardless of health or disability status. 
346.23     (c) The county administrative entity shall provide all 
346.24  enrollees timely access to the medical assistance benefit set.  
346.25  Alternative services and additional services are available to 
346.26  enrollees at the option of the county administrative entity and 
346.27  may be provided if specified in the personal support plan.  
346.28  County authorities are not required to seek prior authorization 
346.29  from the department as required by the laws and rules governing 
346.30  medical assistance. 
346.31     (d) The county administrative entity shall cover necessary 
346.32  services as a result of an emergency without prior 
346.33  authorization, even if the services were rendered outside of the 
346.34  provider network. 
346.35     (e) The county administrative entity shall authorize 
346.36  necessary and appropriate services when needed and requested by 
347.1   the enrollee or the enrollee's legal representative in response 
347.2   to an urgent situation.  Enrollees shall have 24-hour access to 
347.3   urgent care services coordinated by experienced disability 
347.4   providers who have information about enrollees' needs and 
347.5   conditions. 
347.6      (f) The county administrative entity shall accept the 
347.7   capitation payment from the commissioner in return for the 
347.8   provision of services for enrollees. 
347.9      (g) The county administrative entity shall maintain 
347.10  internal grievance and complaint procedures, including an 
347.11  expedited informal complaint process in which the county 
347.12  administrative entity must respond to verbal complaints within 
347.13  ten calendar days, and a formal grievance process, in which the 
347.14  county administrative entity must respond to written complaints 
347.15  within 30 calendar days. 
347.16     (h) The county administrative entity shall provide a 
347.17  certificate of coverage, upon enrollment, to each enrollee and 
347.18  the enrollee's legal representative, if any, which describes the 
347.19  benefits covered by the county administrative entity, any 
347.20  limitations on those benefits, and information about providers 
347.21  and the service delivery network.  This information must also be 
347.22  made available to prospective enrollees.  This certificate must 
347.23  be approved by the commissioner. 
347.24     (i) The county administrative entity shall present evidence 
347.25  of an expedited process to approve exceptions to benefits, 
347.26  provider network restrictions, and other plan limitations under 
347.27  appropriate circumstances. 
347.28     (j) The county administrative entity shall provide 
347.29  enrollees or their legal representatives with written notice of 
347.30  their appeal rights under subdivision 16, and of ombudsman and 
347.31  advocacy programs under subdivisions 13 and 14, at the following 
347.32  times:  upon enrollment, upon submission of a written complaint, 
347.33  when a service is reduced, denied, or terminated, or when 
347.34  renewal of authorization for ongoing service is refused. 
347.35     (k) The county administrative entity shall determine 
347.36  immediate needs, including services, support, and assessments, 
348.1   within 30 calendar days of enrollment, or within a shorter time 
348.2   frame if specified in the intergovernmental contract. 
348.3      (l) The county administrative entity shall assess the need 
348.4   for services of new enrollees within 60 calendar days of 
348.5   enrollment, or within a shorter time frame if specified in the 
348.6   intergovernmental contract, and periodically reassess the need 
348.7   for services for all enrollees. 
348.8      (m) The county administrative entity shall ensure the 
348.9   development of a personal support plan for each person within 60 
348.10  calendar days of enrollment, or within a shorter time frame if 
348.11  specified in the intergovernmental contract, unless otherwise 
348.12  agreed to by the enrollee and the enrollee's legal 
348.13  representative, if any.  Until a personal support plan is 
348.14  developed and agreed to by the enrollee, enrollees must have 
348.15  access to the same amount, type, setting, duration, and 
348.16  frequency of covered services that they had at the time of 
348.17  enrollment unless other covered services are needed.  For an 
348.18  enrollee who is not receiving covered services at the time of 
348.19  enrollment and for enrollees whose personal support plan is 
348.20  being revised, access to the medical assistance benefit set must 
348.21  be assured until a personal support plan is developed or 
348.22  revised.  The personal support plan must be based on choices, 
348.23  preferences, and assessed needs and strengths of the enrollee.  
348.24  The service coordinator shall develop the personal support plan, 
348.25  in consultation with the enrollee or the enrollee's legal 
348.26  representative and other individuals requested by the enrollee.  
348.27  The personal support plan must be updated as needed or as 
348.28  requested by the enrollee.  Enrollees may choose not to have a 
348.29  personal support plan. 
348.30     (n) The county administrative entity shall ensure timely 
348.31  authorization, arrangement, and continuity of needed and covered 
348.32  supports and services. 
348.33     (o) The county administrative entity shall offer service 
348.34  coordination that fulfills the responsibilities under 
348.35  subdivision 12 and is appropriate to the enrollee's needs, 
348.36  choices, and preferences, including a choice of service 
349.1   coordinator. 
349.2      (p) The county administrative entity shall contract with 
349.3   schools and other agencies as appropriate to provide otherwise 
349.4   covered medically necessary medical assistance services as 
349.5   described in an enrollee's individual family support plan, as 
349.6   described in section 120.1701, or individual education plan, as 
349.7   described in chapter 120. 
349.8      (q) The county administrative entity shall develop and 
349.9   implement strategies, based on consultation with affected 
349.10  groups, to respect diversity and ensure culturally competent 
349.11  service delivery in a manner that promotes the physical, social, 
349.12  psychological, and spiritual well-being of enrollees and 
349.13  preserves the dignity of individuals, families, and their 
349.14  communities. 
349.15     (r) When an enrollee changes county authorities, county 
349.16  administrative entities shall ensure coordination with the 
349.17  entity that is assuming responsibility for administering the 
349.18  medical assistance benefit set to ensure continuity of supports 
349.19  and services for the enrollee. 
349.20     (s) The county administrative entity shall comply with 
349.21  additional requirements as specified in the intergovernmental 
349.22  contract.  
349.23     (t) To the extent that alternatives are approved under 
349.24  subdivision 17, county administrative entities must provide for 
349.25  the health and safety of enrollees and protect the rights to 
349.26  privacy and to provide informed consent. 
349.27     Subd. 9.  [CONSUMER CHOICE AND SAFEGUARDS.] (a) The 
349.28  commissioner may require all eligible individuals to obtain 
349.29  services covered under this chapter through county authorities.  
349.30  Enrollees shall be given choices among a range of available 
349.31  providers with expertise in serving persons of their age and 
349.32  with their category of disability.  If the county authority is 
349.33  also a provider of services covered under the demonstration 
349.34  project, other than service coordination, the enrollee shall be 
349.35  given the choice of at least one other provider of that 
349.36  service.  The commissioner shall ensure that all enrollees have 
350.1   continued access to medically necessary covered services. 
350.2      (b) The commissioner must ensure that a set of enrollee 
350.3   safeguards in the categories of access, choice, comprehensive 
350.4   benefits, access to specialist care, disclosure of financial 
350.5   incentives to providers, prohibition of exclusive provider 
350.6   contracting and gag clauses, legal representation, guardianship, 
350.7   representative payee, quality, rights and appeals, privacy, data 
350.8   collection, and confidentiality are in place prior to enrollment 
350.9   of eligible individuals. 
350.10     (c) If multiple service delivery organizations are offered 
350.11  for acute or continuing care within a demonstration site, 
350.12  enrollees shall be given a choice of these organizations.  A 
350.13  choice is required if the county authority operates its own 
350.14  health maintenance organization, community integrated service 
350.15  network, or similar plan.  Enrollees shall be given 
350.16  opportunities to change enrollment in these organizations within 
350.17  12 months following initial enrollment into the demonstration 
350.18  project and shall also be offered an annual open enrollment 
350.19  period, during which they are permitted to change their service 
350.20  delivery organization. 
350.21     (d) Enrollees shall have the option to change their primary 
350.22  care provider once per month. 
350.23     (e) The commissioner may waive the choice of provider 
350.24  requirements in paragraph (a) or the choice of service delivery 
350.25  organization requirements in paragraph (c) if the county 
350.26  authority can demonstrate that, despite reasonable efforts, no 
350.27  other provider of the service or service delivery organization 
350.28  can be made available within the cost and quality requirements 
350.29  of the demonstration project. 
350.30     Subd. 10.  [CAPITATION PAYMENT.] The commissioner shall pay 
350.31  a capitation payment to the county authority and, when 
350.32  applicable under subdivision 6, paragraph (a), to the service 
350.33  delivery organization for each medical assistance eligible 
350.34  enrollee.  The commissioner shall develop capitation payment 
350.35  rates for the initial contract period for each demonstration 
350.36  site in consultation with an independent actuary, to ensure that 
351.1   the cost of services under the demonstration project does not 
351.2   exceed the estimated cost for medical assistance services for 
351.3   the covered population under the fee-for-service system for the 
351.4   demonstration period.  For each year of the demonstration 
351.5   project, the capitation payment rate shall be based on 96 
351.6   percent of the projected per person costs that would otherwise 
351.7   have been paid under medical assistance fee-for-service during 
351.8   each of those years.  Rates shall be adjusted within the limits 
351.9   of the available risk adjustment technology, as mandated by 
351.10  section 62Q.03.  In addition, the commissioner shall implement 
351.11  appropriate risk and savings sharing provisions with county 
351.12  administrative entities and, when applicable under subdivision 
351.13  6, paragraph (a), service delivery organizations within the 
351.14  projected budget limits.  Any savings beyond those allowed for 
351.15  the county authority, county administrative entity, or service 
351.16  delivery organization shall be first used to meet the unmet 
351.17  needs of eligible individuals.  Payments to providers 
351.18  participating in the project are exempt from the requirements of 
351.19  sections 256.966 and 256B.03, subdivision 2. 
351.20     Subd. 11.  [INTEGRATION OF FUNDING SOURCES.] The county 
351.21  authority may integrate other local, state, and federal funding 
351.22  sources with medical assistance funding.  The commissioner's 
351.23  approval is required for integration of state and federal funds 
351.24  but not for local funds.  During the demonstration project 
351.25  period, county authorities must maintain the level of local 
351.26  funds expended during the previous calendar year for populations 
351.27  covered in the demonstration project.  Excluding the state share 
351.28  of Medicaid payments, state appropriations for state-operated 
351.29  services shall not be integrated unless specifically approved by 
351.30  the legislature.  The commissioner may approve integration of 
351.31  other state and federal funding if the intergovernmental 
351.32  contract includes assurances that the people who would have been 
351.33  served by these funds will receive comparable or better 
351.34  services.  The commissioner may withdraw approval for 
351.35  integration of state and federal funds if the county authority 
351.36  does not comply with these assurances.  If the county authority 
352.1   chooses to integrate funding, it must comply with the reporting 
352.2   requirements of the commissioner, as specified in the 
352.3   intergovernmental contract, to account for federal and state 
352.4   Medicaid expenditures and expenditures of local funds.  The 
352.5   commissioner, upon the request and concurrence of a county 
352.6   authority, may transfer state grant funds that would otherwise 
352.7   be made available to the county authority to provide continuing 
352.8   care for enrollees to the medical assistance account and, within 
352.9   the limits of federal authority and available federal funding, 
352.10  the commissioner shall adjust the capitation based on the amount 
352.11  of this transfer. 
352.12     Subd. 12.  [SERVICE COORDINATION.] (a) For purposes of this 
352.13  section, "service coordinator" means an individual selected by 
352.14  the enrollee or the enrollee's legal representative and 
352.15  authorized by the county administrative entity or service 
352.16  delivery organization to work in partnership with the enrollee 
352.17  to develop, coordinate, and in some instances, provide supports 
352.18  and services identified in the personal support plan.  Service 
352.19  coordinators may only provide services and supports if the 
352.20  enrollee is informed of potential conflicts of interest, is 
352.21  given alternatives, and gives informed consent.  Eligible 
352.22  service coordinators are individuals age 18 or older who meet 
352.23  the qualifications as described in paragraph (b).  Enrollees, 
352.24  their legal representatives, or their advocates are eligible to 
352.25  be service coordinators if they have the capabilities to perform 
352.26  the activities and functions outlined in paragraph (b).  
352.27  Providers licensed under chapter 245A to provide residential 
352.28  services, or providers who are providing residential services 
352.29  covered under the group residential housing program may not act 
352.30  as service coordinator for enrollees for whom they provide 
352.31  residential services.  This does not apply to providers of 
352.32  short-term detoxification services.  Each county administrative 
352.33  entity or service delivery organization may develop further 
352.34  criteria for eligible vendors of service coordination during the 
352.35  demonstration period and shall determine whom it contracts with 
352.36  or employs to provide service coordination.  County 
353.1   administrative entities and service delivery organizations may 
353.2   pay enrollees or their representatives for service coordination 
353.3   activities. 
353.4      (b) The service coordinator shall act as a facilitator, 
353.5   working in partnership with the enrollee to ensure that their 
353.6   needs are identified and addressed.  The level of involvement of 
353.7   the service coordinator shall depend on the needs and desires of 
353.8   the enrollee.  The service coordinator shall have the knowledge, 
353.9   skills, and abilities to, and is responsible for: 
353.10     (1) arranging for an initial assessment, and periodic 
353.11  reassessment as necessary, of supports and services based on the 
353.12  enrollee's strengths, needs, choices, and preferences in life 
353.13  domain areas; 
353.14     (2) developing and updating the personal support plan based 
353.15  on relevant ongoing assessment; 
353.16     (3) arranging for and coordinating the provisions of 
353.17  supports and services, including knowlegeable and skills 
353.18  specialty services and prevention and early intervention 
353.19  services, within the limitations negotiated with the county 
353.20  administrative entity or service delivery organization; 
353.21     (4) assisting the enrollee and the enrollee's legal 
353.22  representative, if any, to maximize informed choice of and 
353.23  control over services and supports and to exercise the 
353.24  enrollee's rights and advocate on behalf of the enrollee; 
353.25     (5) monitoring the progress toward achieving the enrollee's 
353.26  outcomes in order to evaluate and adjust the timeliness and 
353.27  adequacy of the implementation of the personal support plan; 
353.28     (6) facilitating meetings and effectively collaborating 
353.29  with a variety of agencies and persons, including attending 
353.30  individual family service plan and individual education plan 
353.31  meetings when requested by the enrollee or the enrollee's legal 
353.32  representative; 
353.33     (7) soliciting and analyzing relevant information; 
353.34     (8) communicating effectively with the enrollee and with 
353.35  other individuals participating in the enrollee's plan; 
353.36     (8) educating and communicating effectively with the 
354.1   enrollee about good health care practices and risk to the 
354.2   enrollee's health with certain behaviors; 
354.3      (10) having knowledge of basic enrollee protection 
354.4   requirements, including data privacy; 
354.5      (11) informing, educating, and assisting the enrollee in 
354.6   identifying available service providers and accessing needed 
354.7   resources and services beyond the limitations of the medical 
354.8   assistance benefit set covered services; and 
354.9      (12) providing other services as identified in the person 
354.10  support plan.  
354.11     (c) For the demonstration project, the qualifications and 
354.12  standards for service coordination in this section shall replace 
354.13  comparable existing provisions of existing statutes and rules 
354.14  governing case management for eligible individuals. 
354.15     Subd. 13.  [OMBUDSMAN.] Enrollees shall have access to 
354.16  ombudsman services established in section 256B.031, subdivision 
354.17  6, and advocacy services provided by the ombudsman for mental 
354.18  health and mental retardation established in sections 245.91 to 
354.19  245.97.  The managed care ombudsman and the ombudsman for mental 
354.20  health and mental retardation shall coordinate services provided 
354.21  to avoid duplication of services.  For purposes of the 
354.22  demonstration project, the powers and responsibilities of the 
354.23  office of the ombudsman for mental health and mental 
354.24  retardation, as provided in sections 245.91 to 245.97 are 
354.25  expanded to include all eligible individuals, health plan 
354.26  companies, agencies, and providers participating in the 
354.27  demonstration project.  
354.28     Subd. 14.  [EXTERNAL ADVOCACY.] In addition to ombudsman 
354.29  services, enrollees shall have access to advocacy services on a 
354.30  local or regional basis.  The purpose of external advocacy 
354.31  includes providing individual advocacy services for enrollees 
354.32  who have complaints or grievances with the county administrative 
354.33  entity, service delivery organization, or a service provider; 
354.34  assisting enrollees to understand the service delivery system 
354.35  and select providers and, if applicable, a service delivery 
354.36  organization; and understand and exercise their rights as an 
355.1   enrollee.  External advocacy contractors must demonstrate that 
355.2   they have the expertise to advocate on behalf of all categories 
355.3   of eligible individuals and are independent of the commissioner, 
355.4   county authority, county administrative entity, service delivery 
355.5   organization, or any service provider within the demonstration 
355.6   project.  
355.7      These advocacy services shall be provided through the 
355.8   ombudsman for mental health and mental retardation directly, or 
355.9   under contract with private, nonprofit organizations, with 
355.10  funding provided through the demonstration project.  The funding 
355.11  shall be provided annually to the ombudsman's office based on 
355.12  0.1 percent of the projected per person costs that would 
355.13  otherwise have been paid under medical assistance 
355.14  fee-for-service during those years.  Funding for external 
355.15  advocacy shall be provided for each year of the demonstration 
355.16  period.  This funding is in addition to the capitation payment 
355.17  available under subdivision 10. 
355.18     Subd. 15.  [PUBLIC GUARDIANSHIP ALTERNATIVES.] Each county 
355.19  authority with enrollees under public guardianship shall develop 
355.20  a plan to discharge all those public guardianships and establish 
355.21  appropriate private alternatives during the demonstration period.
355.22     The commissioner shall provide county authorities with 
355.23  funding for public guardianship alternatives during the first 
355.24  year of the demonstration project based on a proposal to 
355.25  establish private alternatives for a specific number of 
355.26  enrollees under public guardianship.  Funding in subsequent 
355.27  years shall be based on the county authority's performance in 
355.28  achieving discharges of public guardianship and establishing 
355.29  appropriate alternatives.  The commissioner may establish fiscal 
355.30  incentives to encourage county activity in this area.  For each 
355.31  year of the demonstration period, an appropriation is available 
355.32  to the commissioner based on 0.2 percent of the projected per 
355.33  person costs that would otherwise have been paid under medical 
355.34  assistance fee-for-service for that year.  This funding is in 
355.35  addition to the capitation payment available under subdivision 
355.36  10. 
356.1      Subd. 16.  [APPEALS.] Enrollees have the appeal rights 
356.2   specified in section 256.045.  Enrollees may request the 
356.3   conciliation process as outlined under section 256.045, 
356.4   subdivision 4a.  If an enrollee appeals in writing to the state 
356.5   agency on or before the latter of the effective day of the 
356.6   proposed action or the tenth day after they have received the 
356.7   decision of the county administrative entity or service delivery 
356.8   organization to reduce, suspend, terminate, or deny continued 
356.9   authorization for ongoing services which the enrollee had been 
356.10  receiving, the county administrative entity or service delivery 
356.11  organization must continue to authorize services at a level 
356.12  equal to the level it previously authorized until the state 
356.13  agency renders its decision. 
356.14     Subd. 17.  [APPROVAL OF ALTERNATIVES.] The commissioner may 
356.15  approve alternatives to administrative rules if the commissioner 
356.16  determines that appropriate alternative measures are in place to 
356.17  protect the health, safety, and rights of enrollees and to 
356.18  assure that services are of sufficient quality to produce the 
356.19  outcomes described in the personal support plans.  Prior 
356.20  approval waivers, if needed by the demonstration project, shall 
356.21  be extended.  The commissioner shall not waive the rights or 
356.22  procedural protections under sections 245.825; 245.91 to 245.97; 
356.23  252.41, subdivision 9; 256B.092, subdivision 10; 626.556; and 
356.24  626.557; or procedures for the monitoring of psychotropic 
356.25  medications.  Prohibited practices as defined in statutes and 
356.26  rules governing service delivery to eligible individuals are 
356.27  applicable to services delivered under this demonstration 
356.28  project. 
356.29     Subd. 18.  [REPORTING.] Each county authority and service 
356.30  delivery organization, and their contracted providers, shall 
356.31  submit information as required by the commissioner in the 
356.32  intergovernmental contract or service delivery contract, 
356.33  including information about complaints, appeals, outcomes, 
356.34  costs, including spending on services, service utilization, 
356.35  identified unmet needs, services provided, rates of out-of-home 
356.36  placement of children, institutionalization, commitments, number 
357.1   of public guardianships discharged and alternatives to public 
357.2   guardianship established, the use of emergency services, and 
357.3   enrollee satisfaction.  This information must be made available 
357.4   to enrollees and the public.  A county authority under an 
357.5   intergovernmental contract and a service delivery organization 
357.6   under a service delivery contract to provide services must 
357.7   provide the most current listing of the providers who are 
357.8   participating in the plan.  This listing must be provided to 
357.9   enrollees and be made available to the public.  The 
357.10  commissioner, county authorities, and service delivery 
357.11  organizations shall also made all contracts and subcontracts 
357.12  related to the demonstration project available to the public. 
357.13     Subd. 19.  [QUALITY MANAGEMENT AND EVALUATION.] County 
357.14  authorities and service delivery organizations participating in 
357.15  this demonstration project shall provide information to the 
357.16  department as specified in the intergovernmental contract or 
357.17  service delivery contract for the purpose of project evaluation. 
357.18  This information may include both process and outcome evaluation 
357.19  measures across areas that shall include enrollee satisfaction, 
357.20  service delivery, service coordination, individual outcomes, and 
357.21  costs.  An independent evaluation of each demonstration site 
357.22  shall be conducted prior to expansion of the demonstration 
357.23  project to other sites. 
357.24     Subd. 20.  [LIMITATION ON REIMBURSEMENT.] The county 
357.25  administrative entity or service delivery organization may limit 
357.26  any reimbursement to providers not employed by or under contract 
357.27  with the county administrative entity or service delivery 
357.28  organization to the medical assistance rates paid by the 
357.29  commissioner of human services to providers for services to 
357.30  recipients not participating in the demonstration project. 
357.31     Subd. 21.  [COUNTY SOCIAL SERVICES OBLIGATIONS.] For 
357.32  services that are outside of the medical assistance benefit set 
357.33  for enrollees in excluded time status, the county of financial 
357.34  responsibility must negotiate the provisions and payment of 
357.35  services with the county of service prior to the provision of 
357.36  services. 
358.1      Subd. 22.  [MINNESOTA COMMITMENT ACT SERVICES.] The county 
358.2   administrative entity or service delivery organization is 
358.3   financially responsible for all services for enrollees covered 
358.4   by the medical assistance benefit set and ordered by the court 
358.5   under the Minnesota Commitment Act, chapter 253B.  The county 
358.6   authority shall seek input from the county administrative entity 
358.7   or service delivery organization in giving the court information 
358.8   about services the enrollee needs and least restrictive 
358.9   alternatives.  The court order for services is deemed to comply 
358.10  with the definition of medical necessity in Minnesota Rules, 
358.11  part 9505.0175.  The financial responsibility of the county 
358.12  administrative entity or service delivery organization for 
358.13  regional treatment center services to an enrollee while 
358.14  committed to the regional treatment center is limited to 45 days 
358.15  following commitment.  Voluntary hospitalization for enrollees 
358.16  at regional treatment centers must be covered by the county 
358.17  administrative entity or service delivery organization if deemed 
358.18  medically necessary by the county administrative entity or 
358.19  service delivery organization.  The regional treatment center 
358.20  shall not accept a voluntary admission of an enrollee without 
358.21  the authorization of the county administrative entity or service 
358.22  delivery organization.  An enrollee will maintain enrollee 
358.23  status while receiving treatment under the Minnesota Commitment 
358.24  Act or voluntary services in a regional treatment center.  For 
358.25  enrollees committed to the regional treatment center longer than 
358.26  45 days, the commissioner may adjust the aggregate capitation 
358.27  payments, as specified in the intergovernmental contract or 
358.28  service delivery contract. 
358.29     Subd. 23.  [STAKEHOLDER COMMITTEE.] The commissioner shall 
358.30  appoint a stakeholder committee to review and provide 
358.31  recommendations on specifications for demonstration projects; 
358.32  intergovernmental contracts; service delivery contracts; 
358.33  alternatives to administrative rules proposed under subdivision 
358.34  17; specific recommendations for legislation required for the 
358.35  implementation of this project, including changes to statutes; 
358.36  waivers of choice granted under subdivision 9, paragraph (e); 
359.1   and other demonstration project policies and procedures as 
359.2   requested by the commissioner.  The stakeholder committee shall 
359.3   include representatives from the following stakeholders:  
359.4   consumers and their family members, advocates, advocacy 
359.5   organizations, service providers, state government, counties, 
359.6   and health plan companies.  This stakeholder committee shall be 
359.7   in operation for the demonstration period.  The county 
359.8   authorities shall continue to meet with state government to 
359.9   develop the intergovernmental partnership. 
359.10     Subd. 24.  [REPORT TO THE LEGISLATURE.] By February 15 of 
359.11  each year of the demonstration project, the commissioner shall 
359.12  report to the legislature on the progress of the demonstration 
359.13  project, including enrollee outcomes, enrollee satisfaction, 
359.14  fiscal information, other information as described in 
359.15  subdivision 18, recommendations from the stakeholder committee, 
359.16  and descriptions of any rules or other administrative procedures 
359.17  waived. 
359.18     Subd. 25.  [SEVERABILITY.] If any subdivision of this 
359.19  section is not approved by the United States Department of 
359.20  Health and Human Services, the commissioner, with the approval 
359.21  of the county authority, retains the authority to implement the 
359.22  remaining subdivisions.  
359.23     Subd. 26.  [SOUTHERN MINNESOTA HEALTH INITIATIVE PILOT 
359.24  PROJECT.] When the commissioner contracts under subdivisions 1 
359.25  and 6, paragraph (a), with the joint powers board for Blue 
359.26  Earth, Freeborn, LeSueur, and Rice counties to participate in 
359.27  the demonstration project for persons with disabilities under 
359.28  subdivision 5, the commissioner shall also require health plans 
359.29  participating in those counties under this section to contract 
359.30  with the southern Minnesota health initiative (SMHI) joint 
359.31  powers board to provide covered mental health and chemical 
359.32  dependency services for the nonelderly/nondisabled persons who 
359.33  reside in one of the four counties and who are required or elect 
359.34  to participate in the prepaid medical assistance and general 
359.35  assistance medical care programs.  Enrollees may obtain covered 
359.36  mental health and chemical dependency services through the SMHI 
360.1   or through other health plan contractors.  Participation of the 
360.2   nonelderly/nondisabled with the SMHI is voluntary.  The 
360.3   commissioner shall identify a monthly per capita payment amount 
360.4   that health plans are required to pay to the SMHI for all 
360.5   nonelderly/nondisabled recipients who choose the SMHI for their 
360.6   mental health and chemical dependency services. 
360.7                              ARTICLE 9
360.8                            MISCELLANEOUS 
360.9      Section 1.  Minnesota Statutes 1996, section 16A.124, 
360.10  subdivision 4b, is amended to read: 
360.11     Subd. 4b.  [HEALTH CARE PAYMENTS.] The commissioner of 
360.12  human services must pay or deny a valid vendor obligation for 
360.13  health services under the medical assistance, general assistance 
360.14  medical care, or MinnesotaCare program within 30 days after 
360.15  receipt.  A "valid vendor obligation" means a clean claim 
360.16  submitted directly to the commissioner by an eligible health 
360.17  care provider for health services provided to an eligible 
360.18  recipient.  A "clean claim" means an original paper or 
360.19  electronic claim with correct data elements, prepared in 
360.20  accordance with the commissioner's published specifications for 
360.21  claim preparation, that does not require an attachment or text 
360.22  information to pay or deny the claim.  Adjustment claims, claims 
360.23  with attachments and text information, and claims submitted to 
360.24  the commissioner as the secondary or tertiary payer, that have 
360.25  been prepared in accordance with the commissioner's published 
360.26  specifications, must be adjudicated within 90 days after receipt.
360.27     The agency is not required to make an interest penalty 
360.28  payment on claims for which payment has been delayed for 
360.29  purposes of reviewing potentially fraudulent or abusive billing 
360.30  practices, if there is an eventual finding by the agency of 
360.31  fraud or abuse. 
360.32     Sec. 2.  [181.301] [AFTER ACCIDENT COUNSELING.] 
360.33     Subdivision 1.  [COUNSELING AND LEAVE.] Every railroad 
360.34  company shall make available to every affected member of an 
360.35  operating crew involved in an accident on its railroad 
360.36  right-of-way, which results in loss of life, counseling 
361.1   services, or other critical incident stress debriefing services 
361.2   within 48 hours of the accident.  Upon request, the operating 
361.3   crew members involved in the accident may be relieved from duty, 
361.4   with compensation and applicable benefits, for up to three work 
361.5   days following the accident.  After returning to duty, a crew 
361.6   member experiencing traumatic symptoms related to the accident 
361.7   may be afforded additional time off upon recommendation by the 
361.8   counseling service provider. 
361.9      Subd. 2.  [DATA PRIVACY.] No statements made in or 
361.10  information derived from peer or professional counseling 
361.11  performed under this section may be used in any disciplinary 
361.12  proceedings against any employee or in any legal action 
361.13  involving any party to the accident. 
361.14     Subd. 3.  [REQUEST FOR PLAN BY COMMISSIONER.] The 
361.15  commissioner of health may request a copy of the railroad 
361.16  company's plan which demonstrates evidence that the services 
361.17  required in subdivision 1 are available to railroad employees. 
361.18     Sec. 3.  Minnesota Statutes 1996, section 245.03, 
361.19  subdivision 2, is amended to read: 
361.20     Subd. 2.  [MISSION; EFFICIENCY.] It is part of the 
361.21  department's mission that within the department's resources the 
361.22  commissioner shall endeavor to: 
361.23     (1) prevent the waste or unnecessary spending of public 
361.24  money; 
361.25     (2) use innovative fiscal and human resource practices to 
361.26  manage the state's resources and operate the department as 
361.27  efficiently as possible, including the authority to consolidate 
361.28  different nonentitlement grant programs, having similar 
361.29  functions or serving similar populations, as may be determined 
361.30  by the commissioner, while protecting the original purposes of 
361.31  the programs.  Nonentitlement grant funds consolidated by the 
361.32  commissioner shall be reflected in the department's biennial 
361.33  budget.  With approval of the commissioner, vendors who are 
361.34  eligible for funding from any of the commissioner's granting 
361.35  authority under section 256.01, subdivision 2, paragraph (1), 
361.36  clause (f), may submit a single application for a grant 
362.1   agreement including multiple awards; 
362.2      (3) coordinate the department's activities wherever 
362.3   appropriate with the activities of other governmental agencies; 
362.4      (4) use technology where appropriate to increase agency 
362.5   productivity, improve customer service, increase public access 
362.6   to information about government, and increase public 
362.7   participation in the business of government; 
362.8      (5) utilize constructive and cooperative labor-management 
362.9   practices to the extent otherwise required by chapters 43A and 
362.10  179A; 
362.11     (6) include specific objectives in the performance report 
362.12  required under section 15.91 to increase the efficiency of 
362.13  agency operations, when appropriate; and 
362.14     (7) recommend to the legislature, in the performance report 
362.15  of the department required under section 15.91, appropriate 
362.16  changes in law necessary to carry out the mission of the 
362.17  department. 
362.18     Sec. 4.  Minnesota Statutes 1996, section 256.025, 
362.19  subdivision 1, is amended to read: 
362.20     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
362.21  section, the following terms have the meanings given them.  
362.22     (b) "Base amount" means the calendar year 1990 county share 
362.23  of county agency expenditures for all of the programs specified 
362.24  in subdivision 2, except for the programs in subdivision 2, 
362.25  clauses (4), (7), and (13).  The 1990 base amount for 
362.26  subdivision 2, clause (4), shall be reduced by one-seventh for 
362.27  each county, and the 1990 base amount for subdivision 2, clause 
362.28  (7), shall be reduced by seven-tenths for each county, and those 
362.29  amounts in total shall be the 1990 base amount for group 
362.30  residential housing in subdivision 2, clause (13).  Effective 
362.31  January 1, 1998, the base amount for the programs in subdivision 
362.32  2, clauses (1) and (6), shall be eliminated and shall be 
362.33  considered the 1990 base amount for Minnesota family investment 
362.34  program-statewide in subdivision 2, clause (14). 
362.35     (c) "County agency expenditure" means the total expenditure 
362.36  or cost incurred by the county of financial responsibility for 
363.1   the benefits and services for each of the programs specified in 
363.2   subdivision 2, excluding county optional costs which are not 
363.3   reimbursable with state funds.  The term includes the federal, 
363.4   state, and county share of costs for programs in which there is 
363.5   federal financial participation.  For programs in which there is 
363.6   no federal financial participation, the term includes the state 
363.7   and county share of costs.  The term excludes county 
363.8   administrative costs, unless otherwise specified.  
363.9      (d) "Nonfederal share" means the sum of state and county 
363.10  shares of costs of the programs specified in subdivision 2. 
363.11     (e) The "county share of county agency expenditures growth 
363.12  amount" is the amount by which the county share of county agency 
363.13  expenditures in calendar years 1991 to 2002 has increased over 
363.14  the base amount. 
363.15     Sec. 5.  Minnesota Statutes 1996, section 256.025, 
363.16  subdivision 2, is amended to read: 
363.17     Subd. 2.  [COVERED PROGRAMS AND SERVICES.] The procedures 
363.18  in this section govern payment of county agency expenditures for 
363.19  benefits and services distributed under the following programs: 
363.20     (1) aid to families with dependent children under sections 
363.21  256.82, subdivision 1, and 256.935, subdivision 1; 
363.22     (2) medical assistance under sections 256B.041, subdivision 
363.23  5, and 256B.19, subdivision 1; 
363.24     (3) general assistance medical care under section 256D.03, 
363.25  subdivision 6; 
363.26     (4) general assistance under section 256D.03, subdivision 
363.27  2; 
363.28     (5) work readiness under section 256D.03, subdivision 2, 
363.29  for assistance costs incurred prior to July 1, 1995; 
363.30     (6) emergency assistance under section 256.871, subdivision 
363.31  6; 
363.32     (7) Minnesota supplemental aid under section 256D.36, 
363.33  subdivision 1; 
363.34     (8) preadmission screening and alternative care grants; 
363.35     (9) work readiness services under section 256D.051 for 
363.36  employment and training services costs incurred prior to July 1, 
364.1   1995; 
364.2      (10) case management services under section 256.736, 
364.3   subdivision 13, for case management service costs incurred prior 
364.4   to July 1, 1995; 
364.5      (11) general assistance claims processing, medical 
364.6   transportation and related costs; 
364.7      (12) medical assistance, medical transportation and related 
364.8   costs; and 
364.9      (13) group residential housing under section 256I.05, 
364.10  subdivision 8, transferred from programs in clauses (4) and (7); 
364.11  and 
364.12     (14) Minnesota family investment program-statewide under 
364.13  section 256J.02, subdivision 2, clauses (1), (3), and (4), 
364.14  transferred from programs in clauses (1) and (6). 
364.15     Sec. 6.  Minnesota Statutes 1996, section 256.9742, is 
364.16  amended to read: 
364.17     256.9742 [DUTIES AND POWERS OF THE OFFICE.] 
364.18     Subdivision 1.  [DUTIES.] The ombudsman ombudsman's program 
364.19  shall: 
364.20     (1) gather information and evaluate any act, practice, 
364.21  policy, procedure, or administrative action of a long-term care 
364.22  facility, acute care facility, home care service provider, or 
364.23  government agency that may adversely affect the health, safety, 
364.24  welfare, or rights of any client; 
364.25     (2) mediate or advocate on behalf of clients; 
364.26     (3) monitor the development and implementation of federal, 
364.27  state, or local laws, rules, regulations, and policies affecting 
364.28  the rights and benefits of clients; 
364.29     (4) comment on and recommend to the legislature and public 
364.30  and private agencies regarding laws, rules, regulations, and 
364.31  policies affecting clients; 
364.32     (5) inform public agencies about the problems of clients; 
364.33     (6) provide for training of volunteers and promote the 
364.34  development of citizen participation in the work of the office; 
364.35     (7) conduct public forums to obtain information about and 
364.36  publicize issues affecting clients; 
365.1      (8) provide public education regarding the health, safety, 
365.2   welfare, and rights of clients; and 
365.3      (9) collect and analyze data relating to complaints, 
365.4   conditions, and services. 
365.5      Subd. 1a.  [DESIGNATION; LOCAL OMBUDSMAN REPRESENTATIVES 
365.6   STAFF AND VOLUNTEERS.] (a) In designating an individual to 
365.7   perform duties under this section, the ombudsman must determine 
365.8   that the individual is qualified to perform the duties required 
365.9   by this section. 
365.10     (b) An individual designated as ombudsman staff under this 
365.11  section must successfully complete an orientation training 
365.12  conducted under the direction of the ombudsman or approved by 
365.13  the ombudsman.  Orientation training shall be at least 20 hours 
365.14  and will consist of training in:  investigation, dispute 
365.15  resolution, health care regulation, confidentiality, resident 
365.16  and patients' rights, and health care reimbursement. 
365.17     (c) The ombudsman shall develop and implement a continuing 
365.18  education program for individuals designated as ombudsman staff 
365.19  under this section.  The continuing education program shall be 
365.20  at least 60 hours annually. 
365.21     (d) An individual designated as an ombudsman volunteer 
365.22  under this section must successfully complete an approved 
365.23  orientation training course with a minimum curriculum including 
365.24  federal and state bills of rights for long-term care residents, 
365.25  acute hospital patients and home care clients, the Vulnerable 
365.26  Adults Act, confidentiality, and the role of the ombudsman. 
365.27     (e) The ombudsman shall develop and implement a continuing 
365.28  education program for ombudsman volunteers which will provide a 
365.29  minimum of 12 hours of continuing education per year. 
365.30     (f) The ombudsman may withdraw an individual's designation 
365.31  if the individual fails to perform duties of this section or 
365.32  meet continuing education requirements.  The individual may 
365.33  request a reconsideration of such action by the board on aging 
365.34  whose decision shall be final. 
365.35     Subd. 2.  [IMMUNITY FROM LIABILITY.] The ombudsman or 
365.36  designee including staff and volunteers under this section is 
366.1   immune from civil liability that otherwise might result from the 
366.2   person's actions or omissions if the person's actions are in 
366.3   good faith, are within the scope of the person's 
366.4   responsibilities as an ombudsman or designee, and do not 
366.5   constitute willful or reckless misconduct. 
366.6      Subd. 3.  [POSTING.] Every long-term care facility and 
366.7   acute care facility shall post in a conspicuous place the 
366.8   address and telephone number of the office.  A home care service 
366.9   provider shall provide all recipients, including those in 
366.10  elderly housing with services under chapter 144D, with the 
366.11  address and telephone number of the office.  Counties shall 
366.12  provide clients receiving a consumer support grant or a service 
366.13  allowance with the name, address, and telephone number of the 
366.14  office.  The posting or notice is subject to approval by the 
366.15  ombudsman.  
366.16     Subd. 4.  [ACCESS TO LONG-TERM CARE AND ACUTE CARE 
366.17  FACILITIES AND CLIENTS.] The ombudsman or designee may: 
366.18     (1) enter any long-term care facility without notice at any 
366.19  time; 
366.20     (2) enter any acute care facility without notice during 
366.21  normal business hours; 
366.22     (3) enter any acute care facility without notice at any 
366.23  time to interview a patient or observe services being provided 
366.24  to the patient as part of an investigation of a matter that is 
366.25  within the scope of the ombudsman's authority, but only if the 
366.26  ombudsman's or designee's presence does not intrude upon the 
366.27  privacy of another patient or interfere with routine hospital 
366.28  services provided to any patient in the facility; 
366.29     (4) communicate privately and without restriction with any 
366.30  client in accordance with section 144.651, as long as the 
366.31  ombudsman has the client's consent for such communication; 
366.32     (5) inspect records of a long-term care facility, home care 
366.33  service provider, or acute care facility that pertain to the 
366.34  care of the client according to sections 144.335 and 144.651; 
366.35  and 
366.36     (6) with the consent of a client or client's legal 
367.1   guardian, the ombudsman or designated staff shall have access to 
367.2   review records pertaining to the care of the client according to 
367.3   sections 144.335 and 144.651.  If a client cannot consent and 
367.4   has no legal guardian, access to the records is authorized by 
367.5   this section.  
367.6      A person who denies access to the ombudsman or designee in 
367.7   violation of this subdivision or aids, abets, invites, compels, 
367.8   or coerces another to do so is guilty of a misdemeanor. 
367.9      Subd. 5.  [ACCESS TO STATE RECORDS.] The ombudsman or 
367.10  designee, excluding volunteers, has access to data of a state 
367.11  agency necessary for the discharge of the ombudsman's duties, 
367.12  including records classified confidential or private under 
367.13  chapter 13, or any other law.  The data requested must be 
367.14  related to a specific case and is subject to section 13.03, 
367.15  subdivision 4.  If the data concerns an individual, the 
367.16  ombudsman or designee shall first obtain the individual's 
367.17  consent.  If the individual cannot consent and has no legal 
367.18  guardian, then access to the data is authorized by this section. 
367.19     Each state agency responsible for licensing, regulating, 
367.20  and enforcing state and federal laws and regulations concerning 
367.21  long-term care, home care service providers, and acute care 
367.22  facilities shall forward to the ombudsman on a quarterly basis, 
367.23  copies of all correction orders, penalty assessments, and 
367.24  complaint investigation reports, for all long-term care 
367.25  facilities, acute care facilities, and home care service 
367.26  providers. 
367.27     Subd. 6.  [PROHIBITION AGAINST DISCRIMINATION OR 
367.28  RETALIATION.] (a) No entity shall take discriminatory, 
367.29  disciplinary, or retaliatory action against an employee or 
367.30  volunteer, or a patient, resident, or guardian or family member 
367.31  of a patient, resident, or guardian for filing in good faith a 
367.32  complaint with or providing information to the ombudsman or 
367.33  designee including volunteers.  A person who violates this 
367.34  subdivision or who aids, abets, invites, compels, or coerces 
367.35  another to do so is guilty of a misdemeanor. 
367.36     (b) There shall be a rebuttable presumption that any 
368.1   adverse action, as defined below, within 90 days of report, is 
368.2   discriminatory, disciplinary, or retaliatory.  For the purpose 
368.3   of this clause, the term "adverse action" refers to action taken 
368.4   by the entity involved in a report against the person making the 
368.5   report or the person with respect to whom the report was made 
368.6   because of the report, and includes, but is not limited to: 
368.7      (1) discharge or transfer from a facility; 
368.8      (2) termination of service; 
368.9      (3) restriction or prohibition of access to the facility or 
368.10  its residents; 
368.11     (4) discharge from or termination of employment; 
368.12     (5) demotion or reduction in remuneration for services; and 
368.13     (6) any restriction of rights set forth in section 144.651 
368.14  or 144A.44. 
368.15     Sec. 7.  Minnesota Statutes 1996, section 256.9744, 
368.16  subdivision 2, is amended to read: 
368.17     Subd. 2.  [RELEASE.] Data maintained by the office that 
368.18  does not relate to the identity of a complainant, a client 
368.19  receiving home-care services, or a resident of a long-term 
368.20  facility may be released at the discretion of the ombudsman 
368.21  responsible for maintaining the data.  Data relating to the 
368.22  identity of a complainant, a client receiving home-care 
368.23  services, or a resident of a long-term facility may be released 
368.24  only with the consent of the complainant, the client or resident 
368.25  or by court order. 
368.26     Sec. 8.  Minnesota Statutes 1996, section 256E.06, is 
368.27  amended by adding a subdivision to read: 
368.28     Subd. 2b.  [COUNTY SOCIAL SERVICE GRANTS FOR FORMER GRH 
368.29  RECIPIENTS.] (a) Notwithstanding subdivisions 1 and 2, and 
368.30  notwithstanding the provision in Laws 1995, chapter 207, article 
368.31  1, section 2, subdivision 3, that authorized the commissioner to 
368.32  transfer funds from the group residential housing account to 
368.33  community social services aids to counties, beginning July 1, 
368.34  1995, money used to provide continuous funding for assistance to 
368.35  persons who are no longer eligible for assistance under the 
368.36  group residential housing program under chapter 256I, as 
369.1   specified in paragraph (b), is added to the community social 
369.2   services aid amount for the county in which the group 
369.3   residential housing setting for which the person is no longer 
369.4   eligible is located.  Notwithstanding the provision in Laws 
369.5   1995, chapter 207, article 1, section 2, subdivision 3, that 
369.6   required the increased community social services act 
369.7   appropriations to be used to proportionately increase each 
369.8   county's aid, this money must not be apportioned to any other 
369.9   county or counties. 
369.10     (b) Former group residential housing recipients for whom 
369.11  money is added to a county's aid amount under paragraph (a) 
369.12  include: 
369.13     (1) persons receiving services in Hennepin county from a 
369.14  provider that on August 1, 1984, was licensed under Minnesota 
369.15  Rules, parts 9525.0520 to 9525.0660, but was funded as a group 
369.16  residence under the general assistance or Minnesota supplemental 
369.17  aid programs; 
369.18     (2) persons residing in a setting with a semi-independent 
369.19  living services license under Minnesota Rules, parts 9525.0900 
369.20  to 9525.1020; or 
369.21     (3) persons residing in family foster care settings who 
369.22  have become ineligible for group residential housing assistance 
369.23  because they receive services through the medical assistance 
369.24  community-based waiver for persons with mental retardation or 
369.25  related conditions under section 256B.0916. 
369.26     Sec. 9.  Section 256J.02, as proposed by S.F. No. 1, if 
369.27  enacted, is amended by adding a subdivision to read:  
369.28     Subd. 6.  [COUNTY SHARE.] The county share of the MFIP-S 
369.29  program shall be eight percent of the expenditures for the 
369.30  purposes under subdivision 2, clauses (1), (3), and (4).  The 
369.31  state shall reimburse the counties according to the payment 
369.32  schedule set forth in section 256.025.  Payment under this 
369.33  subdivision is subject to the provisions of section 256.017. 
369.34     Sec. 10.  [256J.03] [TANF RESERVE ACCOUNT.] 
369.35     There shall be created in the federal fund in the state 
369.36  treasury a temporary assistance for needy families (TANF) 
370.1   reserve account.  All unexpended federal TANF block grant funds 
370.2   authorized under title I of Public Law Number 104-193 and 
370.3   appropriated for the biennium do not cancel to the general fund 
370.4   but shall be transferred to the TANF reserve account.  Amounts 
370.5   remaining in the TANF reserve account do not cancel, but remain 
370.6   in the account until appropriated. 
370.7      Sec. 11.  [256J.80] [JOBS-PLUS PILOT PROJECT.] 
370.8      Subdivision 1.  [PROJECT AUTHORIZED.] A three-year 
370.9   jobs-plus pilot project administered by the Manpower 
370.10  Demonstration Research Corporation is authorized in Ramsey 
370.11  county.  The commissioner of human services shall cooperate with 
370.12  the St. Paul public housing authority, Ramsey county, the St. 
370.13  Paul workforce development center, and the Manpower 
370.14  Demonstration Research Corporation to develop and implement the 
370.15  project. 
370.16     Subd. 2.  [PROJECT DESCRIPTION.] (a) Jobs-plus shall offer 
370.17  intensive employment-related services and activities to 
370.18  working-age family residents of the Mt. Airy Homes public 
370.19  housing development.  McDonough Homes and Roosevelt Homes public 
370.20  housing developments shall be used as comparison sites.  The 
370.21  project shall incorporate community support for work, work 
370.22  incentives, and best practices in preparing people for sustained 
370.23  employment and in linking residents with jobs. 
370.24     (b) The Mt. Airy community center shall serve as a hub for 
370.25  delivery of pilot project services, delivery of related 
370.26  services, and promotion of community support for work.  The 
370.27  center shall provide space for economic development and 
370.28  supportive services programming and for activities that best 
370.29  respond to diverse resident needs, including expanded child 
370.30  care, computer technology access, employment-related and 
370.31  workforce literacy training, job clubs, job fairs, special 
370.32  workshops, and life skills training. 
370.33     (c) The pilot project shall promote the involvement of Mt. 
370.34  Airy Homes residents in the development and implementation of 
370.35  the pilot project through community meetings, celebrations and 
370.36  recognition events, and the inclusion of resident 
371.1   representatives in planning and implementation activities. 
371.2      (d) The commissioner may authorize work incentives that 
371.3   exceed the incentives provided to participants in the Minnesota 
371.4   family investment program-statewide (MFIP-S). 
371.5      (e) The commissioner of human services, the St. Paul public 
371.6   housing authority, Ramsey county, the St. Paul workforce 
371.7   development center, and the Manpower Development Research 
371.8   Corporation may negotiate changes as necessary in the program 
371.9   outlined in paragraphs (a) to (d) in order to develop an 
371.10  effective jobs-plus project. 
371.11     Subd. 3.  [PROJECT FUNDING.] The commissioner of human 
371.12  services may authorize work incentives that are different from 
371.13  the incentives provided under the MFIP-S program only if 
371.14  nonstate funding is available to defray the additional costs 
371.15  associated with utilizing the different work incentives. 
371.16     Subd. 4.  [RELEASE OF DATA.] Notwithstanding the provisions 
371.17  of chapter 13, Ramsey county and the relevant state agencies 
371.18  shall, upon request, release to the Manpower Demonstration 
371.19  Research Corporation data on public assistance benefits 
371.20  received, wages earned, and unemployment insurance benefits 
371.21  received by residents of the Mt. Airy Homes, McDonough Homes, 
371.22  and Roosevelt Homes public housing developments in St. Paul 
371.23  during the period from 1992 to 2002 for the purposes of 
371.24  complying with the research and evaluation requirements of the 
371.25  jobs-plus program. 
371.26     Sec. 12.  Minnesota Statutes 1996, section 518.17, 
371.27  subdivision 1, is amended to read: 
371.28     Subdivision 1.  [THE BEST INTERESTS OF THE CHILD.] (a) "The 
371.29  best interests of the child" means all relevant factors to be 
371.30  considered and evaluated by the court including: 
371.31     (1) the wishes of the child's parent or parents as to 
371.32  custody; 
371.33     (2) the reasonable preference of the child, if the court 
371.34  deems the child to be of sufficient age to express preference; 
371.35     (3) the child's primary caretaker; 
371.36     (4) the intimacy of the relationship between each parent 
372.1   and the child; 
372.2      (5) the interaction and interrelationship of the child with 
372.3   a parent or parents, siblings, and any other person who may 
372.4   significantly affect the child's best interests; 
372.5      (6) the child's adjustment to home, school, and community; 
372.6      (7) the length of time the child has lived in a stable, 
372.7   satisfactory environment and the desirability of maintaining 
372.8   continuity; 
372.9      (8) the permanence, as a family unit, of the existing or 
372.10  proposed custodial home; 
372.11     (9) the mental and physical health of all individuals 
372.12  involved; except that a disability, as defined in section 
372.13  363.01, of a proposed custodian or the child shall not be 
372.14  determinative of the custody of the child, unless the proposed 
372.15  custodial arrangement is not in the best interest of the child; 
372.16     (10) the capacity and disposition of the parties to give 
372.17  the child love, affection, and guidance, and to continue 
372.18  educating and raising the child in the child's culture and 
372.19  religion or creed, if any; 
372.20     (11) the child's cultural background; 
372.21     (12) the effect on the child of the actions of an abuser, 
372.22  if related to domestic abuse, as defined in section 518B.01, 
372.23  that has occurred between the parents or between a parent and 
372.24  another individual, whether or not the individual alleged to 
372.25  have committed domestic abuse is or ever was a family or 
372.26  household member of the parent; and 
372.27     (13) except in cases in which a finding of domestic abuse 
372.28  as defined in section 518B.01 has been made, the disposition of 
372.29  each parent to encourage and permit frequent and continuing 
372.30  contact by the other parent with the child. 
372.31     The court may not use one factor to the exclusion of all 
372.32  others.  The primary caretaker factor may not be used as a 
372.33  presumption in determining the best interests of the child.  The 
372.34  court must make detailed findings on each of the factors and 
372.35  explain how the factors led to its conclusions and to the 
372.36  determination of the best interests of the child.  
373.1      (b) The court shall not consider conduct of a proposed 
373.2   custodian that does not affect the custodian's relationship to 
373.3   the child. 
373.4      Sec. 13.  [STUDY ON OMBUDSMAN SERVICES.] 
373.5      The senate health and family security budget division and 
373.6   the house health and human services finance division shall (1) 
373.7   study the regulatory effectiveness and efficiency of the current 
373.8   ombudsman services to the elderly, developmentally disabled, 
373.9   chemically dependent, and mentally ill; (2) study the 
373.10  overlapping of services among all protective and advocacy 
373.11  services currently funded by the state; and (3) make 
373.12  recommendations on coordinating the current ombudsman services, 
373.13  for the above described populations, in order to improve their 
373.14  effectiveness and efficiency.  The recommendations may include 
373.15  proposed statute and rule changes relating to advocacy practices 
373.16  and personal and professional conduct. 
373.17     Sec. 14.  [HEALTH CARE CONSUMER ASSISTANCE GRANTS; BOARD ON 
373.18  AGING.] 
373.19     The board on aging shall award a grant to each of the 14 
373.20  area agencies on aging to develop projects to provide 
373.21  information about health coverage and to provide assistance to 
373.22  individuals in obtaining public and private health care benefits.
373.23  Projects must: 
373.24     (1) train and support staff and volunteers to work in 
373.25  partnership to provide one-on-one information and assistance 
373.26  services; 
373.27     (2) provide individual consumers with assistance in 
373.28  understanding the terms of a certificate, contract, or policy of 
373.29  health coverage, including but not limited to, terms relating to 
373.30  covered services, limitations on services, limitations on access 
373.31  to providers, and enrollee complaint and appeal procedures; 
373.32     (3) assist individuals to understand medical bills and to 
373.33  process health care claims and appeals to obtain health care 
373.34  benefits; 
373.35     (4) coordinate with existing health insurance counseling 
373.36  programs serving Medicare eligible individuals or establish 
374.1   programs to serve all consumers; 
374.2      (5) target those individuals determined to be in greatest 
374.3   social and economic need for counseling services; and 
374.4      (6) operate according to United States Code, title 42, 
374.5   section 1395b-4, if serving Medicare beneficiaries. 
374.6      Sec. 15.  [SERVICES PROVIDED TO DEAF-BLIND CHILDREN BY 
374.7   LOCAL ORGANIZATIONS; PARENTAL CONTRIBUTION REQUIRED.] (a) An 
374.8   organization that receives a grant from the commissioner of 
374.9   human services to provide services to deaf-blind children and 
374.10  their families must require the deaf-blind child's parents to be 
374.11  responsible for the cost of services provided, based upon the 
374.12  parents' ability to pay.  In determining a parent's ability to 
374.13  pay, the organization must utilize the contribution amount 
374.14  sliding scale specified in Minnesota Statutes, section 252.27, 
374.15  subdivision 2a.  The commissioner must provide technical 
374.16  assistance to the organization to assist the organization to 
374.17  implement this sliding scale requirement. 
374.18     (b) The commissioner and the organization must monitor the 
374.19  implementation of the sliding scale requirement in paragraph 
374.20  (a).  If the commissioner and the organization develop 
374.21  recommendations for an alternative method of implementing a 
374.22  parental contribution sliding scale requirement that is easier 
374.23  for the organization to administer, the commissioner must report 
374.24  these recommendations to the chairs of the house health and 
374.25  human services finance division and the senate health and family 
374.26  security budget division by January 31, 1998. 
374.27     Sec. 16.  [VETERANS HOMES IMPROVEMENTS.] 
374.28     The veterans homes board of directors may make and maintain 
374.29  the following improvements to the indicated veterans homes using 
374.30  money donated for those purposes: 
374.31     (1) at the Hastings veterans home, an outdoor bus shelter 
374.32  and smoking area for residents and a pole barn for storage of 
374.33  residents' property; 
374.34     (2) at the Luverne veterans home, a garage, picnic shelter, 
374.35  and three-season porch; and 
374.36     (3) at the Silver Bay veterans home, a garage, maintenance, 
375.1   and storage building, a three-season porch at the east entrance, 
375.2   and landscaping as follows: 
375.3      (i) walking and wheelchair trails; 
375.4      (ii) stationary benches along trails; 
375.5      (iii) flag pole relocation; 
375.6      (iv) a gazebo in the dementia wander area; and 
375.7      (v) two patio areas.  
375.8      Sec. 17.  [REPEALER.] 
375.9      Minnesota Statutes, section 256.026, is repealed effective 
375.10  January 1, 1998. 
375.11     Sec. 18.  [EFFECTIVE DATE.] 
375.12     Sections 2 and 8 are effective the day following final 
375.13  enactment. 
375.14                             ARTICLE 10
375.15                        MARRIAGE PROVISIONS
375.16     Section 1.  Minnesota Statutes 1996, section 517.01, is 
375.17  amended to read: 
375.18     517.01 [MARRIAGE A CIVIL CONTRACT.] 
375.19     Marriage, so far as its validity in law is concerned, is a 
375.20  civil contract between a man and a woman, to which the consent 
375.21  of the parties, capable in law of contracting, is essential.  
375.22  Lawful marriage may be contracted only between persons of the 
375.23  opposite sex and only when a license has been obtained as 
375.24  provided by law and when the marriage is contracted in the 
375.25  presence of two witnesses and solemnized by one authorized, or 
375.26  whom one or both of the parties in good faith believe to be 
375.27  authorized, so to do.  Marriages subsequent to April 26, 1941, 
375.28  not so contracted shall be null and void. 
375.29     Sec. 2.  Minnesota Statutes 1996, section 517.03, is 
375.30  amended to read: 
375.31     517.03 [PROHIBITED MARRIAGES.] 
375.32     Subdivision 1.  [GENERAL.] (a) The following marriages are 
375.33  prohibited: 
375.34     (a) (1) a marriage entered into before the dissolution of 
375.35  an earlier marriage of one of the parties becomes final, as 
375.36  provided in section 518.145 or by the law of the jurisdiction 
376.1   where the dissolution was granted; 
376.2      (b) (2) a marriage between an ancestor and a descendant, or 
376.3   between a brother and a sister, whether the relationship is by 
376.4   the half or the whole blood or by adoption; 
376.5      (c) (3) a marriage between an uncle and a niece, between an 
376.6   aunt and a nephew, or between first cousins, whether the 
376.7   relationship is by the half or the whole blood, except as to 
376.8   marriages permitted by the established customs of aboriginal 
376.9   cultures; provided, however, that and 
376.10     (4) a marriage between persons of the same sex. 
376.11     (b) A marriage entered into by persons of the same sex, 
376.12  either under common law or statute, that is recognized by 
376.13  another state or foreign jurisdiction is void in this state and 
376.14  contractual rights granted by virtue of the marriage or its 
376.15  termination are unenforceable in this state.  A same-sex 
376.16  relationship may not be recognized by this state as being 
376.17  entitled to the benefits of marriage. 
376.18     Subd. 2.  [MENTALLY RETARDED PERSONS; CONSENT BY 
376.19  COMMISSIONER OF HUMAN SERVICES.] Mentally retarded persons 
376.20  committed to the guardianship of the commissioner of human 
376.21  services and mentally retarded persons committed to the 
376.22  conservatorship of the commissioner of human services in which 
376.23  the terms of the conservatorship limit the right to marry, may 
376.24  marry on receipt of written consent of the commissioner.  The 
376.25  commissioner shall grant consent unless it appears from the 
376.26  commissioner's investigation that the marriage is not in the 
376.27  best interest of the ward or conservatee and the public.  The 
376.28  court administrator of the district court in the county where 
376.29  the application for a license is made by the ward or conservatee 
376.30  shall not issue the license unless the court administrator has 
376.31  received a signed copy of the consent of the commissioner of 
376.32  human services. 
376.33     Sec. 3.  Minnesota Statutes 1996, section 517.08, 
376.34  subdivision 1a, is amended to read: 
376.35     Subd. 1a.  Application for a marriage license shall be made 
376.36  upon a form provided for the purpose and shall contain the 
377.1   following information: 
377.2      (1) the full names of the parties, and the sex of each 
377.3   party; 
377.4      (2) their post office addresses and county and state of 
377.5   residence,; 
377.6      (3) their full ages,; 
377.7      (4) if either party has previously been married, the 
377.8   party's married name, and the date, place and court in which the 
377.9   marriage was dissolved or annulled or the date and place of 
377.10  death of the former spouse,; 
377.11     (5) if either party is a minor, the name and address of the 
377.12  minor's parents or guardian,; 
377.13     (6) whether the parties are related to each other, and, if 
377.14  so, their relationship,; 
377.15     (7) the name and date of birth of any child of which both 
377.16  parties are parents, born before the making of the application, 
377.17  unless their parental rights and the parent and child 
377.18  relationship with respect to the child have been terminated,; 
377.19     (8) address of the bride and groom after the marriage to 
377.20  which the court administrator shall send a certified copy of the 
377.21  marriage certificate,; and 
377.22     (9) the full names the parties will have after marriage. 
377.23     Sec. 4.  Minnesota Statutes 1996, section 517.20, is 
377.24  amended to read: 
377.25     517.20 [APPLICATION.] 
377.26     Except as provided in section 517.03, subdivision 1, 
377.27  paragraph (b), all marriages contracted within this state prior 
377.28  to March 1, 1979 or outside this state that were valid at the 
377.29  time of the contract or subsequently validated by the laws of 
377.30  the place in which they were contracted or by the domicile of 
377.31  the parties are valid in this state. 
377.32     Sec. 5.  [EFFECTIVE DATE.] 
377.33     Sections 1, 2, and 4 are effective the day following final 
377.34  enactment.  Section 3 is effective July 1, 1997.  Section 2, 
377.35  subdivision 1, paragraph (b), and section 4 apply to all 
377.36  marriages entered into in other jurisdictions before, on, or 
378.1   after the effective date.