1.1                          A bill for an act 
  1.2             relating to human services; authorizing an increase in 
  1.3             payment rates for day training and habilitation 
  1.4             services vendors to be used for a salary increase for 
  1.5             certain personnel; amending Minnesota Statutes 1996, 
  1.6             sections 252.24, subdivision 5; and 252.46, 
  1.7             subdivision 3. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 252.24, 
  1.10  subdivision 5, is amended to read: 
  1.11     Subd. 5.  [DEVELOPMENTAL ACHIEVEMENT CENTERS:  SALARY 
  1.12  ADJUSTMENT PER DIEM.] (a) The commissioner shall approve a two 
  1.13  percent increase in the payment rates for day training and 
  1.14  habilitation services vendors effective July 1, 1991.  All 
  1.15  revenue generated shall be used by vendors to increase salaries, 
  1.16  fringe benefits, and payroll taxes by at least three percent for 
  1.17  personnel below top management. 
  1.18     (b) Effective July 1, 1997, the commissioner shall approve 
  1.19  an increase in the payment rates for day training and 
  1.20  habilitation vendors to be used by vendors to increase salaries 
  1.21  of direct service staff.  The rate must allow for a 90-cent per 
  1.22  hour increase in total compensation of which 70 cents per hour 
  1.23  shall be paid for direct service staff salaries and 20 cents per 
  1.24  hour shall be paid for fringe benefits and payroll taxes.  
  1.25  County boards shall amend contracts with vendors to require that 
  1.26  all revenue generated by this provision is expended on salary 
  2.1   increases to direct service staff below top management of 90 
  2.2   cents per hour total compensation of which 70 cents per hour 
  2.3   shall be paid for direct service staff salaries and 20 cents per 
  2.4   hour for fringe benefits and payroll taxes.  County boards shall 
  2.5   verify in writing to the commissioner that each vendor has 
  2.6   complied with this requirement.  If a county board determines 
  2.7   that a vendor has not complied with this requirement for a 
  2.8   specific contract period, the county board shall reduce the 
  2.9   vendor's payment rates for the next contract period to reflect 
  2.10  the amount of money not spent appropriately.  The commissioner 
  2.11  shall modify reporting requirements for vendors and counties as 
  2.12  necessary to monitor compliance with this provision. 
  2.13     Each county agency shall report to the commissioner by July 
  2.14  30, 1991, its actual social service day training and 
  2.15  habilitation expenditures for calendar year 1990.  The 
  2.16  commissioner shall allocate the day habilitation service CSSA 
  2.17  appropriation made available for this purpose to county agencies 
  2.18  in proportion to these expenditures. 
  2.19     Sec. 2.  Minnesota Statutes 1996, section 252.46, 
  2.20  subdivision 3, is amended to read: 
  2.21     Subd. 3.  [RATE MAXIMUM.] (a) Unless a variance is granted 
  2.22  under subdivision 6, the maximum payment rates for each vendor 
  2.23  for a calendar year must be equal to the payment rates approved 
  2.24  by the commissioner for that vendor in effect December 1 of the 
  2.25  previous calendar year.  The commissioner of finance shall 
  2.26  include as a budget change request in each biennial detailed 
  2.27  expenditure budget submitted to the legislature under section 
  2.28  16A.11 annual inflation adjustments in reimbursement rates for 
  2.29  each vendor, based upon the projected percentage change in the 
  2.30  urban consumer price index, all items, published by the United 
  2.31  States Department of Labor, for the upcoming calendar year over 
  2.32  the current calendar year.  
  2.33     (b) Notwithstanding paragraph (a), the commissioner shall 
  2.34  approve an increase in the payment rates for day training and 
  2.35  habilitation vendors to be used by vendors to increase salaries 
  2.36  of direct service staff effective for the fiscal year beginning 
  3.1   July 1, 1997.  The rate must allow for a 90-cent per hour 
  3.2   increase in total compensation of which 70 cents per hour shall 
  3.3   be paid for direct service staff salaries and 20 cents per hour 
  3.4   shall be paid for fringe benefits and payroll taxes.