1.1                          A bill for an act
  1.2             relating to human services; allowing greater use of 
  1.3             arrangements with businesses when providing day 
  1.4             training and habilitation services; directing the 
  1.5             commissioner of human services to develop a more 
  1.6             flexible rate variance mechanism for day training 
  1.7             habilitation services vendors; amending Minnesota 
  1.8             Statutes 1996, section 252.451, subdivision 5. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1996, section 252.451, 
  1.11  subdivision 5, is amended to read: 
  1.12     Subd. 5.  [VENDOR PAYMENT.] (a) For purposes of this 
  1.13  section, the vendor shall bill and the commissioner shall 
  1.14  reimburse the vendor for full-day or partial-day services to a 
  1.15  client that would otherwise have been paid to the vendor for 
  1.16  providing direct services, provided that both of the following 
  1.17  criteria are met: 
  1.18     (1) the vendor provides services and payments to the 
  1.19  qualified business that enable the business to perform support 
  1.20  and supervision services for the client that the vendor would 
  1.21  otherwise need to perform; and 
  1.22     (2) any client for whom a rate will be billed was receiving 
  1.23  full-time services from the vendor on or before July 1, 
  1.24  1993, the client for whom a rate will be billed will receive 
  1.25  full-day or partial-day services from the vendor and the rate to 
  1.26  be paid the vendor will allow the client to work with this 
  1.27  support in a community and supervision at the qualified business 
  2.1   instead of receiving any other service these services from the 
  2.2   vendor. 
  2.3      (b) Medical assistance reimbursement of services provided 
  2.4   to persons receiving day training and habilitation services 
  2.5   under this section is subject to the limitations on 
  2.6   reimbursement for vocational services under federal law and 
  2.7   regulation. 
  2.8      Sec. 2.  [PROPOSAL FOR RATE VARIANCES.] 
  2.9      The commissioner of human services, in consultation with an 
  2.10  advisory committee including representatives of counties, 
  2.11  service consumers, and vendors of day training and habilitation 
  2.12  services, including at least one representative from each 
  2.13  association representing day training and habilitation vendors, 
  2.14  shall develop a rate variance mechanism that identifies medical 
  2.15  or behavioral criteria that permit a change in the payment rate 
  2.16  when an individual already being served by a vendor of day 
  2.17  training and habilitation services experiences a significant 
  2.18  decrease in skill functioning that requires additional staffing 
  2.19  or services that are not covered by the vendor's current rate.  
  2.20  The commissioner shall present proposed legislation amending the 
  2.21  existing rate variance criteria to the legislature by January 
  2.22  15, 1999.