1.1                          A bill for an act 
  1.2             relating to human services; appropriating money; 
  1.3             changing provisions for long-term care, health care 
  1.4             programs, and provisions including MA and GAMC, 
  1.5             MinnesotaCare, welfare reform, work first, compulsive 
  1.6             gambling, child welfare modifications and child 
  1.7             support, and regional treatment centers; providing 
  1.8             administrative penalties; providing for the recording 
  1.9             and reporting of abortion data; amending Minnesota 
  1.10            Statutes 1996, sections 62A.65, subdivision 5; 
  1.11            62D.042, subdivision 2; 62E.16; 62J.321, by adding a 
  1.12            subdivision; 62Q.095, subdivision 3; 144.226, 
  1.13            subdivision 3; 144.701, subdivisions 1, 2, and 4; 
  1.14            144.702, subdivisions 1, 2, and 8; 144.9501, 
  1.15            subdivisions 1, 17, 18, 20, 23, 30, 32, and by adding 
  1.16            subdivisions; 144.9502, subdivisions 3, 4, and 9; 
  1.17            144.9503, subdivisions 4, 6, and 7; 144.9504, 
  1.18            subdivisions 1, 3, 4, 5, 6, 7, 8, 9, and 10; 144.9505, 
  1.19            subdivisions 1, 4, and 5; 144.9506, subdivision 2; 
  1.20            144.9507, subdivisions 2, 3, and 4; 144.9508, 
  1.21            subdivisions 1, 3, 4, and by adding a subdivision; 
  1.22            144.9509, subdivision 2; 144.99, subdivision 1; 
  1.23            144A.04, subdivision 5; 144A.09, subdivision 1; 
  1.24            144A.44, subdivision 2; 145.11, by adding a 
  1.25            subdivision; 145A.15, subdivision 2; 157.15, 
  1.26            subdivisions 9, 12, 12a, 13, and 14; 214.03; 245.462, 
  1.27            subdivisions 4 and 8; 245.4871, subdivision 4; 
  1.28            245A.03, by adding subdivisions; 245A.035, subdivision 
  1.29            4; 245A.14, subdivision 4; 254A.17, subdivision 1, and 
  1.30            by adding a subdivision; 256.01, subdivision 12, and 
  1.31            by adding subdivisions; 256.014, subdivision 1; 
  1.32            256.969, subdivisions 16 and 17; 256B.03, subdivision 
  1.33            3; 256B.055, subdivision 7, and by adding a 
  1.34            subdivision; 256B.057, subdivision 3a, and by adding 
  1.35            subdivisions; 256B.0625, subdivisions 7, 17, 19a, 20, 
  1.36            34, 38, and by adding subdivisions; 256B.0627, 
  1.37            subdivision 4; 256B.0911, subdivision 4; 256B.0916; 
  1.38            256B.41, subdivision 1; 256B.431, subdivisions 2b, 2i, 
  1.39            4, 11, 22, and by adding subdivisions; 256B.501, 
  1.40            subdivisions 2 and 12; 256B.69, subdivision 22, and by 
  1.41            adding subdivisions; 256D.03, subdivision 4, and by 
  1.42            adding a subdivision; 256D.051, by adding a 
  1.43            subdivision; 256D.46, subdivision 2; 256I.04, 
  1.44            subdivisions 1, 3, and by adding a subdivision; 
  1.45            256I.05, subdivision 2; 257.42; 257.43; 259.24, 
  1.46            subdivision 1; 259.37, subdivision 2; 259.67, 
  2.1             subdivision 1; 260.011, subdivision 2; 260.141, by 
  2.2             adding a subdivision; 260.172, subdivision 1; 260.221, 
  2.3             as amended; 268.88; 268.92, subdivision 4; 609.115, 
  2.4             subdivision 9; and 626.556, by adding a subdivision; 
  2.5             Minnesota Statutes 1997 Supplement, sections 13.99, by 
  2.6             adding a subdivision; 60A.15, subdivision 1; 62D.11, 
  2.7             subdivision 1; 62J.69, subdivisions 1, 2, and by 
  2.8             adding subdivisions; 62J.71, subdivisions 1, 3, and 4; 
  2.9             62J.72, subdivision 1; 62J.75; 62Q.105, subdivision 1; 
  2.10            62Q.30; 103I.208, subdivision 2; 119B.01, subdivision 
  2.11            16; 119B.02; 123.70, subdivision 10, as amended; 
  2.12            144.1494, subdivision 1; 144.218, subdivision 2; 
  2.13            144.226, subdivision 4; 144.9504, subdivision 2; 
  2.14            144.9506, subdivision 1; 144A.071, subdivision 4a; 
  2.15            144A.4605, subdivision 4; 157.16, subdivision 3; 
  2.16            171.29, subdivision 2; 214.32, subdivision 1; 245A.03, 
  2.17            subdivision 2; 245A.04, subdivisions 3b and 3d; 
  2.18            245B.06, subdivision 2; 256.01, subdivision 2; 
  2.19            256.031, subdivision 6; 256.741, by adding a 
  2.20            subdivision; 256.82, subdivision 2; 256.9657, 
  2.21            subdivision 3; 256.9685, subdivision 1; 256.9864; 
  2.22            256B.04, subdivision 18; 256B.056, subdivisions 1a and 
  2.23            4; 256B.06, subdivision 4; 256B.062; 256B.0625, 
  2.24            subdivision 31a; 256B.0627, subdivisions 5 and 8; 
  2.25            256B.0635, by adding a subdivision; 256B.0645; 
  2.26            256B.0911, subdivisions 2 and 7; 256B.0913, 
  2.27            subdivision 14; 256B.0915, subdivisions 1d and 3; 
  2.28            256B.0951, by adding a subdivision; 256B.431, 
  2.29            subdivisions 3f and 26; 256B.433, subdivision 3a; 
  2.30            256B.434, subdivision 10; 256B.69, subdivisions 2 and 
  2.31            3a; 256B.692, subdivisions 2 and 5; 256B.77, 
  2.32            subdivisions 3, 7a, 10, and 12; 256D.03, subdivision 
  2.33            3; 256D.05, subdivision 8; 256F.05, subdivision 8; 
  2.34            256J.02, subdivision 4; 256J.03; 256J.08, subdivisions 
  2.35            11, 26, 28, 40, 60, 68, 73, 83, and by adding 
  2.36            subdivisions; 256J.09, subdivisions 6 and 9; 256J.11, 
  2.37            subdivision 2, as amended; 256J.12; 256J.14; 256J.15, 
  2.38            subdivision 2; 256J.20, subdivisions 2 and 3; 256J.21; 
  2.39            256J.24, subdivisions 1, 2, 3, 4, 7, and by adding 
  2.40            subdivisions; 256J.26, subdivisions 1, 2, 3, and 4; 
  2.41            256J.28, subdivisions 1, 2, and by adding a 
  2.42            subdivision; 256J.30, subdivisions 10 and 11; 256J.31, 
  2.43            subdivisions 5, 10, and by adding a subdivision; 
  2.44            256J.32, subdivisions 4, 6, and by adding a 
  2.45            subdivision; 256J.33, subdivisions 1 and 4; 256J.35; 
  2.46            256J.36; 256J.37, subdivisions 1, 2, 9, and by adding 
  2.47            subdivisions; 256J.38, subdivision 1; 256J.39, 
  2.48            subdivision 2; 256J.395; 256J.42; 256J.43; 256J.45, 
  2.49            subdivisions 1, 2, and by adding a subdivision; 
  2.50            256J.46, subdivisions 1, 2, and 2a; 256J.47, 
  2.51            subdivision 4; 256J.48, subdivisions 2 and 3; 256J.49, 
  2.52            subdivision 4; 256J.50, subdivision 5, and by adding 
  2.53            subdivisions; 256J.515; 256J.52, subdivision 4, and by 
  2.54            adding subdivisions; 256J.54, subdivisions 2, 3, 4, 
  2.55            and 5; 256J.55, subdivision 5; 256J.56; 256J.57, 
  2.56            subdivision 1; 256J.645, subdivision 3; 256J.74, 
  2.57            subdivision 2, and by adding a subdivision; 256K.03, 
  2.58            subdivision 5; 256L.01; 256L.02, subdivision 3, and by 
  2.59            adding a subdivision; 256L.03, subdivisions 1, 3, 4, 
  2.60            5, and by adding subdivisions; 256L.04, subdivisions 
  2.61            1, 2, 7, 8, 9, 10, and by adding subdivisions; 
  2.62            256L.05, subdivisions 2, 3, 4, and by adding 
  2.63            subdivisions; 256L.06, subdivision 3; 256L.07; 
  2.64            256L.09, subdivisions 2, 4, and 6; 256L.11, 
  2.65            subdivision 6; 256L.12, subdivision 5; 256L.15; 
  2.66            256L.17, by adding a subdivision; 257.071, subdivision 
  2.67            1d; 257.85, subdivision 5; 259.22, subdivision 4; 
  2.68            259.47, subdivision 3; 259.58; 259.60, subdivision 2; 
  2.69            260.012; 260.015, subdivisions 2a and 29; 260.161, 
  2.70            subdivision 2; 260.191, subdivisions 1, 1a, 3a, and 
  2.71            3b; 260.241, subdivision 3; and 270A.03, subdivision 
  3.1             5; Laws 1994, chapter 633, article 7, section 3; Laws 
  3.2             1997, chapter 195, section 5; chapter 203, article 4, 
  3.3             section 64; article 9, section 21; chapter 207, 
  3.4             section 7; chapter 225, article 2, section 64; and 
  3.5             chapter 248, section 46, as amended; proposing coding 
  3.6             for new law in Minnesota Statutes, chapters 62J; 62Q; 
  3.7             144; 145; 245; 256; 256B; 256D; and 256J; repealing 
  3.8             Minnesota Statutes 1996, sections 62J.685; 144.0721, 
  3.9             subdivision 3a; 144.491; 144.9501, subdivisions 12, 
  3.10            14, and 16; 144.9503, subdivisions 5, 8, and 9; 
  3.11            157.15, subdivision 15; 256.031, subdivisions 1, 2, 3, 
  3.12            and 4; 256.032; 256.033, subdivisions 2, 3, 4, 5, and 
  3.13            6; 256.034; 256.035; 256.036; 256.0361; 256.047; 
  3.14            256.0475; 256.048; and 256.049; Minnesota Statutes 
  3.15            1997 Supplement, sections 62D.042, subdivision 3; 
  3.16            144.0721, subdivision 3; 256.031, subdivisions 5 and 
  3.17            6; 256.033, subdivisions 1 and 1a; 256B.057, 
  3.18            subdivision 1a; 256B.062; 256B.0913, subdivision 15; 
  3.19            256J.25; 256J.28, subdivision 4; 256J.32, subdivision 
  3.20            5; 256J.34, subdivision 5; 256L.04, subdivisions 3, 4, 
  3.21            5, and 6; 256L.06, subdivisions 1 and 2; 256L.08; 
  3.22            256L.09, subdivision 3; 256L.13; and 256L.14; Laws 
  3.23            1997, chapter 85, article 1, sections 61 and 71; and 
  3.24            article 3, section 55. 
  3.25  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  3.26                             ARTICLE 1 
  3.27                           APPROPRIATIONS 
  3.28  Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
  3.29     The sums shown in the columns marked "APPROPRIATIONS" are 
  3.30  appropriated from the general fund, or any other fund named, to 
  3.31  the agencies and for the purposes specified in the following 
  3.32  sections of this article, to be available for the fiscal years 
  3.33  indicated for each purpose.  The figures "1998" and "1999" where 
  3.34  used in this article, mean that the appropriation or 
  3.35  appropriations listed under them are available for the fiscal 
  3.36  year ending June 30, 1998, or June 30, 1999, respectively.  
  3.37  Where a dollar amount appears in parentheses, it means a 
  3.38  reduction of an appropriation.  
  3.39                          SUMMARY BY FUND 
  3.40  APPROPRIATIONS                                      BIENNIAL
  3.41                            1998          1999           TOTAL
  3.42  General            $ (139,959,000)$ (161,811,000)$ (301,770,000)
  3.43  State Government
  3.44  Special Revenue           113,000        231,000        344,000
  3.45  Health Care Access 
  3.46  Fund                   (3,130,000)   (14,203,000)   (17,333,000)
  3.47  TOTAL              $ (142,976,000)$ (175,783,000)$ (318,759,000)
  3.48                                             APPROPRIATIONS 
  3.49                                         Available for the Year 
  3.50                                             Ending June 30 
  4.1                                             1998         1999 
  4.2   Sec. 2.  COMMISSIONER OF 
  4.3   HUMAN SERVICES 
  4.4   Subdivision 1.  Total 
  4.5   Appropriation                     $ (143,089,000)$ (196,131,000)
  4.6                 Summary by Fund
  4.7   General            (139,959,000) (181,669,000)
  4.8   Health Care Access   (3,130,000)  (14,462,000)
  4.9   This appropriation is taken from the 
  4.10  appropriation in Laws 1997, chapter 
  4.11  203, article 1, section 2. 
  4.12  The amounts that are added to or 
  4.13  reduced from the appropriation for each 
  4.14  program are specified in the following 
  4.15  subdivisions. 
  4.16  Subd. 2.  Children's Grants
  4.17          -0-         1,618,000 
  4.18  [CRISIS NURSERY PROGRAMS.] Of this 
  4.19  appropriation, $200,000 in fiscal year 
  4.20  1999 is from the general fund to the 
  4.21  commissioner to contract for technical 
  4.22  assistance with counties and private 
  4.23  nonprofit agencies that are interested 
  4.24  in developing a crisis nursery 
  4.25  program.  The technical assistance must 
  4.26  be designed to assist interested 
  4.27  counties in building capacity to 
  4.28  develop and maintain a crisis nursery 
  4.29  program in the county.  The grant 
  4.30  amounts must not exceed $20,000.  To be 
  4.31  eligible to receive a grant under this 
  4.32  program, the county must not have an 
  4.33  existing crisis nursery program and 
  4.34  must not be a metropolitan county, as 
  4.35  that term is defined in Minnesota 
  4.36  Statutes, section 473.121.  Grants must 
  4.37  be distributed by award letters to 
  4.38  agencies demonstrating a need for 
  4.39  crisis nursery services and documenting 
  4.40  community support for these efforts.  
  4.41  This appropriation shall not become 
  4.42  part of base level funding for the 
  4.43  2000-2001 biennium. 
  4.44  [CHILDREN'S MENTAL HEALTH SERVICES.] 
  4.45  (a) Of this appropriation, $300,000 in 
  4.46  fiscal year 1999 is from the general 
  4.47  fund for the commissioner to award 
  4.48  grants to counties that have a 
  4.49  relatively low net tax capacity to 
  4.50  provide children's mental health 
  4.51  services to children and families 
  4.52  residing outside of a metropolitan 
  4.53  statistical area, as that term is 
  4.54  defined by the United States Census 
  4.55  Bureau.  Funds shall be used to provide 
  4.56  services according to an individual 
  4.57  family community support plan as 
  4.58  described in Minnesota Statutes, 
  4.59  section 245.4881, subdivision 4.  The 
  4.60  plan must be developed using a process 
  5.1   that enhances consumer empowerment.  
  5.2   Counties with an approved children's 
  5.3   mental health collaborative may 
  5.4   integrate funds appropriated for fiscal 
  5.5   years 1998 and 1999 with existing funds 
  5.6   to meet the needs identified in the 
  5.7   child's individual family community 
  5.8   support plan. 
  5.9   (b) In awarding grants to counties 
  5.10  under this provision, the commissioner 
  5.11  shall follow the process established in 
  5.12  Minnesota Statutes, section 245.4886, 
  5.13  subdivision 2.  The commissioner shall 
  5.14  give priority for funding to counties 
  5.15  that continued to spend for mental 
  5.16  health services specified in Minnesota 
  5.17  Statutes, sections 245.461 to 245.486 
  5.18  and 245.487 to 245.4888, according to 
  5.19  generally accepted accounting 
  5.20  principles, in an amount equal to the 
  5.21  total expenditures shown in the 
  5.22  county's approved 1987 CSSA plan for 
  5.23  services to persons with mental illness 
  5.24  plus the comparable figure for 
  5.25  facilities licensed under Minnesota 
  5.26  Rules, chapter 9545, for target 
  5.27  populations other than mental illness 
  5.28  in the county's approved 1989 CSSA 
  5.29  plan.  The commissioner shall ensure 
  5.30  that grant funds are not used to 
  5.31  replace existing funds. 
  5.32  [PRIMARY SUPPORT TO IMPLEMENT THE 
  5.33  INDIAN FAMILY PRESERVATION ACT.] For 
  5.34  fiscal year 1998, $100,000 of federal 
  5.35  funds are transferred from the state's 
  5.36  federal TANF block grant and added to 
  5.37  the state's allocation of federal Title 
  5.38  XX block grant funds.  Notwithstanding 
  5.39  the provisions of Minnesota Statutes 
  5.40  1997 Supplement, section 256E.07, the 
  5.41  commissioner shall use $100,000 of the 
  5.42  state's Title XX block grant funds for 
  5.43  a grant under Minnesota Statutes, 
  5.44  section 257.3571, subdivision 1, to an 
  5.45  Indian organization licensed as an 
  5.46  adoption agency.  The grant must be 
  5.47  used to provide primary support for 
  5.48  implementation of the Minnesota Indian 
  5.49  Family Preservation Act and compliance 
  5.50  with the Indian Child Welfare Act.  
  5.51  This appropriation must be used 
  5.52  according to the requirements of United 
  5.53  States Code, title 42, section 
  5.54  604(d)(3)(B).  This appropriation is 
  5.55  available until June 30, 1999. 
  5.56  [ADOPTION ASSISTANCE CARRYFORWARD.] Of 
  5.57  the appropriation in Laws 1997, chapter 
  5.58  203, section 2, subdivision 3, for 
  5.59  children's grants for fiscal year 1998, 
  5.60  $600,000 of the amount appropriated for 
  5.61  the adoption assistance program is 
  5.62  available for the same purpose in 
  5.63  fiscal year 1999.  The amount carried 
  5.64  forward shall become part of the base 
  5.65  for the adoption assistance program in 
  5.66  the 2000-2001 biennial budget. 
  5.67  [FAMILY PRESERVATION PROGRAM FUNDING.] 
  6.1   $10,200,000 is transferred in fiscal 
  6.2   year 1999 from the state's federal TANF 
  6.3   block grant to the state's federal 
  6.4   Title XX block grant.  Notwithstanding 
  6.5   the provisions of Minnesota Statutes 
  6.6   1997 Supplement, section 256E.07, in 
  6.7   fiscal year 1999 the commissioner shall 
  6.8   transfer $10,000,000 of the state's 
  6.9   Title XX block grant funds to the 
  6.10  family preservation program under 
  6.11  Minnesota Statutes, chapter 256F.  The 
  6.12  commissioner shall transfer $200,000 to 
  6.13  the commissioner of health for the 
  6.14  program under Minnesota Statutes, 
  6.15  section 145A.15, that funds home 
  6.16  visiting projects; these transferred 
  6.17  funds are available until expended.  
  6.18  The commissioners shall ensure that 
  6.19  money allocated to counties under this 
  6.20  provision must be used in accordance 
  6.21  with the requirements of United States 
  6.22  Code, title 42, section 604(d)(3)(B).  
  6.23  These are one-time appropriations that 
  6.24  shall not be added to the base for 
  6.25  these programs for the 2000-2001 
  6.26  biennial budget. 
  6.27  Subd. 3.  Basic Health Care Grants
  6.28     (97,529,000)  (146,802,000)
  6.29                Summary by Fund
  6.30  General             (94,591,000) (128,833,000)
  6.31  Health Care Access   (2,938,000)  (17,969,000)
  6.32  The amounts that may be spent from this 
  6.33  appropriation for each purpose are as 
  6.34  follows: 
  6.35  (a) Minnesota Care Grants
  6.36  Health Care Access Fund
  6.37      (2,938,000)   (17,969,000)
  6.38  [SUBSIDIZED FAMILY HEALTH COVERAGE.] Of 
  6.39  this appropriation, $500,000 from the 
  6.40  health care access fund in fiscal year 
  6.41  1999 is to implement the 
  6.42  employer-subsidized health coverage 
  6.43  program described in article 5, section 
  6.44  45.  
  6.45  (b) MA Basic Health Care Grants-
  6.46  Families and Children
  6.47  General (32,047,000)  (65,249,000)
  6.48  [FETAL ALCOHOL SYNDROME MEDICAL 
  6.49  ASSISTANCE FEDERAL MATCH.] The 
  6.50  commissioner shall claim all available 
  6.51  federal match under Title XIX for the 
  6.52  fetal alcohol syndrome/fetal alcohol 
  6.53  effect initiatives.  Grants and 
  6.54  projects shall be developed which focus 
  6.55  treatment on community-based options 
  6.56  which consider the availability of 
  6.57  federal match. 
  6.58  (c) MA Basic Health Care Grants- 
  7.1   Elderly and  Disabled
  7.2   General (25,643,000)  (40,952,000)
  7.3   (d) General Assistance Medical Care
  7.4   General (36,901,000)  (22,632,000)
  7.5   [PRESCRIPTION DRUG BENEFIT.] (a) If, by 
  7.6   September 15, 1998, federal approval is 
  7.7   obtained to provide a prescription drug 
  7.8   benefit for qualified Medicare 
  7.9   beneficiaries at no less than 100 
  7.10  percent of the federal poverty 
  7.11  guidelines and service-limited Medicare 
  7.12  beneficiaries under Minnesota Statutes, 
  7.13  section 256B.057, subdivision 3a, at no 
  7.14  less than 120 percent of federal 
  7.15  poverty guidelines, the commissioner of 
  7.16  human services shall not implement the 
  7.17  senior citizen drug program under 
  7.18  Minnesota Statutes, section 256.955, 
  7.19  but shall implement a drug benefit in 
  7.20  accordance with the approved waiver.  
  7.21  Upon approval of this waiver, the total 
  7.22  appropriation for the senior citizen 
  7.23  drug program under Laws 1997, chapter 
  7.24  225, article 7, section 2, shall be 
  7.25  transferred to the medical assistance 
  7.26  account to fund the federally approved 
  7.27  coverage for eligible persons for 
  7.28  fiscal year 1999. 
  7.29  (b) The commissioner may seek approval 
  7.30  for a higher copayment for eligible 
  7.31  persons above 100 percent of the 
  7.32  federal poverty guidelines. 
  7.33  (c) The commissioner shall report by 
  7.34  October 15, 1998, to the chairs of the 
  7.35  health and human services policy and 
  7.36  fiscal committees of the house and 
  7.37  senate whether the waiver referred to 
  7.38  in paragraph (a) has been approved and 
  7.39  will be implemented or whether the 
  7.40  state senior citizen drug program will 
  7.41  be implemented. 
  7.42  (d) If the commissioner does not 
  7.43  receive federal waiver approval at or 
  7.44  above the level of eligibility defined 
  7.45  in paragraph (a), the commissioner 
  7.46  shall implement the program under 
  7.47  Minnesota Statutes, section 256.955. 
  7.48  [HEALTH CARE ACCESS FUND TRANSFERS TO 
  7.49  THE GENERAL FUND.] Notwithstanding Laws 
  7.50  1997, chapter 203, article 1, section 
  7.51  2, subdivision 5, the commissioner 
  7.52  shall transfer funds from the health 
  7.53  care access fund to the general fund to 
  7.54  offset the projected savings to general 
  7.55  assistance medical care (GAMC) that 
  7.56  would result from the transition of 
  7.57  GAMC parents and adults without 
  7.58  children to MinnesotaCare.  For fiscal 
  7.59  year 1998, the amount transferred from 
  7.60  the health care access fund to the 
  7.61  general fund shall be $13,700,000.  The 
  7.62  amount of transfer for fiscal year 1999 
  7.63  shall be $2,659,000. 
  8.1   Subd. 4.  Basic Health Care Management
  8.2         (192,000)     2,448,000 
  8.3                 Summary by Fund
  8.4   General                 -0-            25,000
  8.5   Health Care Access     (192,000)    2,423,000
  8.6   The amounts that may be spent from this 
  8.7   appropriation for each purpose are as 
  8.8   follows: 
  8.9   (a) Health Care Policy Administration
  8.10  General                 -0-            25,000
  8.11  Health Care Access     (192,000)      354,000
  8.12  [DELAY IN TRANSFERRING GAMC CLIENTS.] 
  8.13  Due to delaying the transfer of GAMC 
  8.14  clients to MinnesotaCare until January 
  8.15  1, 2000, $192,000 in fiscal year 1998 
  8.16  health care access fund administrative 
  8.17  funds, appropriated in Laws 1997, 
  8.18  chapter 225, article 7, section 2, 
  8.19  subdivision 1, are canceled. 
  8.20  [HEALTH CARE MANUAL PRODUCTION COSTS.] 
  8.21  For the biennium ending June 30, 1999, 
  8.22  the commissioner may charge a fee for 
  8.23  the health care manual.  The difference 
  8.24  between the cost of producing and 
  8.25  distributing the department of human 
  8.26  services health care manual, and the 
  8.27  fees paid by individuals and private 
  8.28  entities on January 1, 1998, is 
  8.29  appropriated to the commissioner to 
  8.30  defray manual production and 
  8.31  distribution costs.  The commissioner 
  8.32  must provide the health care manual to 
  8.33  government agencies and nonprofit 
  8.34  agencies serving the legal and social 
  8.35  service needs of clients at no cost to 
  8.36  those agencies. 
  8.37  [TRANSFER.] For fiscal years 2000 and 
  8.38  2001, the commissioner of finance shall 
  8.39  transfer from the health care access 
  8.40  fund to the general fund an amount to 
  8.41  cover the expenditures associated with 
  8.42  the services provided to pregnant women 
  8.43  and children under the age of two 
  8.44  enrolled in the MinnesotaCare program.  
  8.45  Notwithstanding section 7, this 
  8.46  provision expires on July 1, 2001.  
  8.47  [FEDERAL CONTINGENCY RESERVE LIMIT.] 
  8.48  Notwithstanding Minnesota Statutes, 
  8.49  section 16A.76, subdivision 2, the 
  8.50  federal contingency reserve limit shall 
  8.51  be reduced for fiscal years 1999, 2000, 
  8.52  and 2001 by the cumulative amount of 
  8.53  the expenditures associated with 
  8.54  services provided to pregnant women and 
  8.55  children enrolled in the MinnesotaCare 
  8.56  program in these fiscal years.  
  8.57  Notwithstanding section 7, this 
  8.58  provision expires on July 1, 2001. 
  9.1   [MINNESOTACARE OUTREACH FEDERAL 
  9.2   MATCHING FUNDS.] Any federal matching 
  9.3   funds received as a result of the 
  9.4   MinnesotaCare outreach activities 
  9.5   authorized by Laws 1997, chapter 225, 
  9.6   article 7, section 2, subdivision 1, 
  9.7   shall be deposited in the health care 
  9.8   access fund and dedicated to the 
  9.9   commissioner of human services to be 
  9.10  used for those outreach purposes. 
  9.11  (b) Health Care Operations
  9.12  Health Care Access      -0-         2,069,000
  9.13  [MINNESOTACARE OUTREACH.] Unexpended 
  9.14  money in fiscal year 1998 for 
  9.15  MinnesotaCare outreach activities 
  9.16  appropriated in Laws 1997, chapter 225, 
  9.17  article 7, section 2, subdivision 1, 
  9.18  does not cancel, but is available for 
  9.19  those purposes in fiscal year 1999. 
  9.20  Subd. 5.  State-Operated Services
  9.21          -0-          (254,000) 
  9.22  The amounts that may be spent from this 
  9.23  appropriation for each purpose are as 
  9.24  follows: 
  9.25  (a) RTC Facilities
  9.26          -0-           700,000
  9.27  [LEAVE LIABILITIES.] The accrued leave 
  9.28  liabilities of state employees 
  9.29  transferred to state-operated community 
  9.30  services programs may be paid from the 
  9.31  appropriation for state-operated 
  9.32  services in Laws 1997, chapter 203, 
  9.33  article 1, section 2, subdivision 7, 
  9.34  paragraph (a).  Funds set aside for 
  9.35  this purpose shall not exceed the 
  9.36  amount of the actual leave liability 
  9.37  calculated as of June 30, 1999, and 
  9.38  shall be available until expended.  
  9.39  This provision is effective the day 
  9.40  following final enactment. 
  9.41  [GRAVE MARKERS.] Of the $195,000 
  9.42  retained by the commissioner from the 
  9.43  $200,000 appropriation in Laws 1997, 
  9.44  chapter 203, article 1, section 2, 
  9.45  subdivision 7, paragraph (a), for grave 
  9.46  markers at regional treatment centers, 
  9.47  $29,250 is for community organizing, 
  9.48  coordination, fundraising, and 
  9.49  administration. 
  9.50  [RTC BUILDING AND SPACE ANALYSIS.] Of 
  9.51  this appropriation, $50,000 from the 
  9.52  general fund in fiscal year 1999 is for 
  9.53  the commissioner to conduct an analysis 
  9.54  of surplus land and buildings on the 
  9.55  regional treatment center campuses and 
  9.56  to develop recommendations for future 
  9.57  utilization of this property.  The 
  9.58  commissioner shall report to the 
  9.59  legislature by January 15, 1999, with 
  9.60  recommendations for an orderly process 
 10.1   to sell, lease, demolish, transfer, or 
 10.2   otherwise dispose of unneeded buildings 
 10.3   and land. 
 10.4   (b) State-Operated Community 
 10.5   Services - DD
 10.6          -0-           (954,000)
 10.7   Subd. 6.  Continuing Care and 
 10.8   Community Support Grants
 10.9      (36,806,000)    (9,289,000)
 10.10  The amounts that may be spent from this 
 10.11  appropriation for each purpose are as 
 10.12  follows: 
 10.13  (a) Community Services Block Grants
 10.14         130,000        846,000 
 10.15  [WILKIN COUNTY FLOOD COSTS.] Of this 
 10.16  appropriation, $130,000 for fiscal year 
 10.17  1998 is to reimburse Wilkin county for 
 10.18  flood-related human service and public 
 10.19  health costs which cannot be reimbursed 
 10.20  through any other source. 
 10.21  (b) Aging Adult Service Grants
 10.22         -0-            250,000 
 10.23  [METROPOLITAN AREA AGENCY ON AGING.] Of 
 10.24  this appropriation, $100,000 in fiscal 
 10.25  year 1999 from the general fund is for 
 10.26  the commissioner for the metropolitan 
 10.27  area agency on aging to provide 
 10.28  technical support and planning services 
 10.29  to enable older adults to remain living 
 10.30  in the community.  This appropriation 
 10.31  shall not cancel but is available until 
 10.32  expended. 
 10.33  [HOME SHARING.] Of this appropriation, 
 10.34  $150,000 in fiscal year 1999 is from 
 10.35  the general fund to the commissioner 
 10.36  for the home-sharing program under 
 10.37  Minnesota Statutes, section 256.973, 
 10.38  which links elderly, disabled, and 
 10.39  families together to share a home. 
 10.40  (c) Deaf and Hard-of-Hearing 
 10.41  Services Grants
 10.42         -0-            234,000 
 10.43  [SERVICES FOR DEAF-BLIND PERSONS.] Of 
 10.44  this appropriation, $150,000 in fiscal 
 10.45  year 1999 is for the following: 
 10.46  (1) $100,000 for a grant to Deaf Blind 
 10.47  Services Minnesota, Inc., in order to 
 10.48  provide services to deaf-blind children 
 10.49  and their families.  The services 
 10.50  include providing intervenors to assist 
 10.51  deaf-blind children in participating in 
 10.52  their community and providing family 
 10.53  education specialists to teach siblings 
 10.54  and parents skills to support the 
 10.55  deaf-blind child in the family. 
 11.1   (2) $50,000 is for a grant to Deaf 
 11.2   Blind Services Minnesota, Inc., and 
 11.3   Duluth Lighthouse for the Blind, Inc., 
 11.4   in order to provide assistance to 
 11.5   deaf-blind persons who are working 
 11.6   toward establishing and maintaining 
 11.7   independence. 
 11.8   (d) Mental Health Grants
 11.9          100,000      1,803,000 
 11.10  [DD CRISIS INTERVENTION PROJECT.] Of 
 11.11  this appropriation, $125,000 in fiscal 
 11.12  year 1999 is from the general fund to 
 11.13  the commissioner for start-up operating 
 11.14  and training costs for the action, 
 11.15  support, and prevention project of 
 11.16  southeastern Minnesota.  This 
 11.17  appropriation is to provide crisis 
 11.18  intervention through community-based 
 11.19  services in the private sector to 
 11.20  persons with developmental disabilities 
 11.21  under Laws 1995, chapter 207, article 
 11.22  3, section 22.  This appropriation 
 11.23  shall not become part of base level 
 11.24  funding for the 2000-2001 biennium. 
 11.25  [FLOOD COSTS.] Of this appropriation, 
 11.26  $100,000 for fiscal year 1998 and 
 11.27  $700,000 for fiscal year 1999 is to pay 
 11.28  for flood-related mental health 
 11.29  services and to reimburse mental health 
 11.30  centers for the cost of disruptions in 
 11.31  the mental health centers' other 
 11.32  services that were caused by diversion 
 11.33  of staff to flood efforts.  Funding is 
 11.34  limited to costs for services which 
 11.35  cannot be reimbursed through any other 
 11.36  source in counties officially declared 
 11.37  as disaster areas. 
 11.38  [COMPULSIVE GAMBLING CARRYFORWARD.] 
 11.39  Unexpended funds appropriated to the 
 11.40  commissioner for compulsive gambling 
 11.41  programs for fiscal year 1998 do not 
 11.42  cancel but are available for these 
 11.43  purposes for fiscal year 1999. 
 11.44  (e) Developmental Disabilities
 11.45  Support Grants
 11.46         -0-            162,000 
 11.47  (f) Medical Assistance Long-Term 
 11.48  Care Waivers and Home Care
 11.49      (3,936,000)    (2,435,000) 
 11.50  [JULY 1, 1998, PROVIDER RATE INCREASE.] 
 11.51  (1) Effective for services rendered on 
 11.52  or after July 1, 1998, the commissioner 
 11.53  shall increase reimbursement or 
 11.54  allocation rates by three percent, and 
 11.55  county boards shall adjust provider 
 11.56  contracts as needed, for home and 
 11.57  community-based waiver services for 
 11.58  persons with mental retardation or 
 11.59  related conditions under Minnesota 
 11.60  Statutes, section 256B.501; home and 
 11.61  community-based waiver services for the 
 12.1   elderly under Minnesota Statutes, 
 12.2   section 256B.0915; waivered services 
 12.3   under community alternatives for 
 12.4   disabled individuals under Minnesota 
 12.5   Statutes, section 256B.49; community 
 12.6   alternative care waivered services 
 12.7   under Minnesota Statutes, section 
 12.8   256B.49; traumatic brain injury 
 12.9   waivered services under Minnesota 
 12.10  Statutes, section 256B.49; nursing 
 12.11  services and home health services under 
 12.12  Minnesota Statutes, section 256B.0625, 
 12.13  subdivision 6a; personal care services 
 12.14  and nursing supervision of personal 
 12.15  care services under Minnesota Statutes, 
 12.16  section 256B.0625, subdivision 19a; 
 12.17  private duty nursing services under 
 12.18  Minnesota Statutes, section 256B.0625, 
 12.19  subdivision 7; day training and 
 12.20  habilitation services for adults with 
 12.21  mental retardation or related 
 12.22  conditions under Minnesota Statutes, 
 12.23  sections 252.40 to 252.46; physical 
 12.24  therapy services under Minnesota 
 12.25  Statutes, sections 256B.0625, 
 12.26  subdivision 8, and 256D.03, subdivision 
 12.27  4; occupational therapy services under 
 12.28  Minnesota Statutes, sections 256B.0625, 
 12.29  subdivision 8a, and 256D.03, 
 12.30  subdivision 4; speech-language therapy 
 12.31  services under Minnesota Statutes, 
 12.32  section 256D.03, subdivision 4, and 
 12.33  Minnesota Rules, part 9505.0390; 
 12.34  respiratory therapy services under 
 12.35  Minnesota Statutes, section 256D.03, 
 12.36  subdivision 4, and Minnesota Rules, 
 12.37  part 9505.0295; dental services under 
 12.38  Minnesota Statutes, sections 256B.0625, 
 12.39  subdivision 9, and 256D.03, subdivision 
 12.40  4; alternative care services under 
 12.41  Minnesota Statutes, section 256B.0913; 
 12.42  adult residential program grants under 
 12.43  Minnesota Rules, parts 9535.2000 to 
 12.44  9535.3000; adult and family community 
 12.45  support grants under Minnesota Rules, 
 12.46  parts 9535.1700 to 9535.1760; 
 12.47  semi-independent living services under 
 12.48  Minnesota Statutes, section 252.275, 
 12.49  including SILS funding under county 
 12.50  social services grants formerly funded 
 12.51  under Minnesota Statutes, chapter 256I; 
 12.52  day treatment under Minnesota Rules, 
 12.53  part 9505.0323; the skills training 
 12.54  component of (a) family community 
 12.55  support services under Minnesota 
 12.56  Statutes, section 256B.0625, 
 12.57  subdivisions 5 and 35, (b) therapeutic 
 12.58  support of foster care under Minnesota 
 12.59  Statutes, section 256B.0625, 
 12.60  subdivisions 5 and 36, and (c) 
 12.61  home-based treatment under Minnesota 
 12.62  Rules, part 9505.0324; and community 
 12.63  support services for deaf and 
 12.64  hard-of-hearing adults with mental 
 12.65  illness who use or wish to use sign 
 12.66  language as their primary means of 
 12.67  communication. 
 12.68  (2) Effective January 1, 1999, the 
 12.69  commissioner shall increase capitation 
 12.70  rates in the prepaid medical assistance 
 13.1   program, prepaid general assistance 
 13.2   medical care program, and prepaid 
 13.3   MinnesotaCare program as appropriate to 
 13.4   reflect the rate increases in paragraph 
 13.5   (l). 
 13.6   (3) It is the intention of the 
 13.7   legislature that the compensation 
 13.8   packages of staff within each service 
 13.9   be increased by three percent. 
 13.10  (4) Section 7, sunset of uncodified 
 13.11  language, does not apply to this 
 13.12  provision. 
 13.13  (g) Medical Assistance Long-Term
 13.14  Care Facilities
 13.15     (24,318,000)   (16,911,000)                 
 13.16  [ICFs/MR AND NURSING FACILITY 
 13.17  FLOOD-RELATED REPORTING.] For the 
 13.18  reporting year ending December 31, 
 13.19  1997, for ICFs/MR that temporarily 
 13.20  admitted victims of the flood of 1997, 
 13.21  the resident days related to the 
 13.22  temporary placement of persons not 
 13.23  formally admitted who continued to be 
 13.24  billed under the evacuated facility's 
 13.25  provider number shall not be counted in 
 13.26  the cost report submitted to calculate 
 13.27  October 1, 1998, rates, and the 
 13.28  additional expenditures shall be 
 13.29  considered nonallowable. 
 13.30  For the reporting year ending September 
 13.31  30, 1997, for nursing facilities that 
 13.32  temporarily admitted victims of the 
 13.33  flood of 1997, the resident days 
 13.34  related to the temporary placement of 
 13.35  persons not formally admitted who 
 13.36  continued to be billed under the 
 13.37  evacuated facility's provider number 
 13.38  shall not be counted in the cost report 
 13.39  submitted to calculate July 1, 1998, 
 13.40  rates, and the additional expenditures 
 13.41  shall be considered nonallowable. 
 13.42  [ICF/MR DISALLOWANCES.] Of this 
 13.43  appropriation, $65,000 in fiscal year 
 13.44  1999 is from the general fund to the 
 13.45  commissioner for the purpose of 
 13.46  reimbursing a 12-bed ICF/MR in Stearns 
 13.47  county and a 12-bed ICF/MR in Sherburne 
 13.48  county for disallowances resulting from 
 13.49  field audit findings.  The commissioner 
 13.50  shall exempt these facilities from the 
 13.51  provisions of Minnesota Statutes, 
 13.52  section 256B.501, subdivision 5b, 
 13.53  paragraph (d), clause (6), for the rate 
 13.54  years beginning October 1, 1997, and 
 13.55  October 1, 1998.  Section 10, sunset of 
 13.56  uncodified language, does not apply to 
 13.57  this provision. 
 13.58  [NURSING HOME MORATORIUM EXCEPTIONS.] 
 13.59  Base level funding for medical 
 13.60  assistance long-term care facilities is 
 13.61  increased by $255,000 in fiscal year 
 13.62  2000 and by $278,000 in fiscal year 
 13.63  2001 for the additional medical 
 14.1   assistance costs of the nursing home 
 14.2   moratorium exceptions under Minnesota 
 14.3   Statutes 1997 Supplement, section 
 14.4   144A.071, subdivision 4a, paragraphs 
 14.5   (w) and (x).  Notwithstanding the 
 14.6   provisions of section 7, sunset of 
 14.7   uncodified language, this provision 
 14.8   shall not expire. 
 14.9   (h) Alternative Care Grants  
 14.10         -0-         22,663,000                
 14.11  (i) Group Residential Housing
 14.12      (8,782,000)    (8,408,000)                
 14.13  [SERVICES TO DEAF PERSONS WITH MENTAL 
 14.14  ILLNESS.] Of this appropriation, 
 14.15  $65,000 in fiscal year 1999 is from the 
 14.16  general fund to the commissioner for a 
 14.17  grant to a nonprofit agency that 
 14.18  currently serves deaf and 
 14.19  hard-of-hearing adults with mental 
 14.20  illness through residential programs 
 14.21  and supported housing outreach 
 14.22  activities.  The grant must be used to 
 14.23  continue or maintain community support 
 14.24  services for deaf and hard-of-hearing 
 14.25  adults with mental illness who use or 
 14.26  wish to use sign language as their 
 14.27  primary means of communication.  This 
 14.28  appropriation is in addition to the 
 14.29  appropriation in Laws 1997, chapter 
 14.30  203, article 1, section 2, subdivision 
 14.31  8, paragraph (d), for a grant to this 
 14.32  nonprofit agency.  This appropriation 
 14.33  shall not become part of base level 
 14.34  funding for the 2000-2001 biennium. 
 14.35  (j) Chemical Dependency
 14.36  Entitlement Grants
 14.37         -0-         (7,893,000)                
 14.38  [CHEMICAL DEPENDENCY RESERVE ACCOUNT.] 
 14.39  For fiscal year 1999, $3,000,000 is 
 14.40  canceled from the chemical dependency 
 14.41  reserve account within the consolidated 
 14.42  chemical dependency treatment fund to 
 14.43  the general fund. 
 14.44  (k) Chemical Dependency                                        
 14.45  Nonentitlement Grants 
 14.46         -0-            400,000                                   
 14.47  [MATCHING GRANT FOR YOUTH ALCOHOL 
 14.48  TREATMENT.] Of this appropriation, 
 14.49  $400,000 in fiscal year 1999 is from 
 14.50  the general fund for the commissioner 
 14.51  to provide a grant to the board of 
 14.52  directors of the Minnesota Indian 
 14.53  Primary Residential Treatment Center, 
 14.54  Inc., to build a youth alcohol 
 14.55  treatment wing at the Mash-Ka-Wisen 
 14.56  Treatment Center.  This appropriation 
 14.57  is available only if matched by a 
 14.58  $1,500,000 federal grant and a $100,000 
 14.59  grant from state Indian bands. 
 15.1   [MATCHING GRANT FOR PROJECT TURNABOUT.] 
 15.2   If money is appropriated in fiscal year 
 15.3   1999 to the commissioner from the 
 15.4   lottery prize fund, the money shall be 
 15.5   used to provide a grant for capital 
 15.6   improvements to Project Turnabout in 
 15.7   Granite Falls.  A local match is 
 15.8   required before the commissioner may 
 15.9   release this appropriation to the 
 15.10  facility.  The facility shall receive 
 15.11  state funds equal to the amount of 
 15.12  local matching funds provided, up to 
 15.13  the limit of this appropriation. 
 15.14  Subd. 7.  Continuing Care and
 15.15  Community Support Management
 15.16         -0-             25,000                
 15.17  [REGION 10 COMMISSION CARRYOVER 
 15.18  AUTHORITY.] Any unspent portion of the 
 15.19  appropriation to the commissioner in 
 15.20  Laws 1997, chapter 203, article 1, 
 15.21  section 2, subdivision 9, for the 
 15.22  region 10 quality assurance commission 
 15.23  for fiscal year 1998 shall not cancel 
 15.24  but shall be available for the 
 15.25  commission for fiscal year 1999. 
 15.26  [STUDY OF DAY TRAINING CAPITAL NEEDS.] 
 15.27  (a) Of this appropriation, $25,000 in 
 15.28  fiscal year 1999 is from the general 
 15.29  fund to the commissioner to conduct a 
 15.30  study to: 
 15.31  (1) determine the extent to which day 
 15.32  training and habilitation programs have 
 15.33  unmet capital improvement needs; 
 15.34  (2) ascertain the degree to which these 
 15.35  unmet capital needs impact consumers of 
 15.36  day training and habilitation programs; 
 15.37  (3) determine the state's role and 
 15.38  responsibility in meeting the capital 
 15.39  improvement needs of day training and 
 15.40  habilitation programs; and 
 15.41  (4) examine the relationship among the 
 15.42  state, counties, and community 
 15.43  resources in meeting the capital 
 15.44  improvement needs of day training and 
 15.45  habilitation programs. 
 15.46  (b) The commissioner shall report to 
 15.47  the legislature by January 15, 1999, 
 15.48  the results of the study along with 
 15.49  recommendations for involving the 
 15.50  state, counties, and community 
 15.51  resources in collaborative initiatives 
 15.52  to assist in meeting the capital 
 15.53  improvement needs of day training and 
 15.54  habilitation programs. 
 15.55  (c) This appropriation shall not become 
 15.56  part of base level funding for the 
 15.57  2000-2001 biennium. 
 15.58  Subd. 8.  Economic Support Grants
 15.59      (8,562,000)   (44,961,000)                
 16.1   The amounts that may be spent from this 
 16.2   appropriation for each purpose are as 
 16.3   follows: 
 16.4   (a) Assistance to Families Grants
 16.5        1,173,000    (32,282,000)                
 16.6   [FEDERAL TANF FUNDS.] Notwithstanding 
 16.7   any contrary provisions of Laws 1997, 
 16.8   chapter 203, article 1, section 2, 
 16.9   subdivision 12, federal TANF block 
 16.10  grant funds are appropriated to the 
 16.11  commissioner in amounts up to 
 16.12  $230,200,000 in fiscal year 1998 and 
 16.13  $285,990,000 in fiscal year 1999. 
 16.14  Additional federal TANF funds may be 
 16.15  expended but only to the extent that an 
 16.16  equal amount of state funds have been 
 16.17  transferred to the TANF reserve under 
 16.18  Minnesota Statutes, section 256J.03.  
 16.19  [TRANSFER OF STATE MONEY FROM TANF 
 16.20  RESERVE.] For fiscal year 1999, 
 16.21  $5,416,000 is appropriated from the 
 16.22  state money in the TANF reserve to the 
 16.23  commissioner for the purposes of 
 16.24  funding the Minnesota food assistance 
 16.25  program under Minnesota Statutes, 
 16.26  section 256D.053, and the eligibility 
 16.27  of legal noncitizens who were not 
 16.28  Minnesota residents on March 1, 1997, 
 16.29  for the general assistance program 
 16.30  under the amendments to Minnesota 
 16.31  Statutes, section 256D.05, subdivision 
 16.32  8, in article 6. 
 16.33  [TRANSFER OF FEDERAL TANF FUNDS TO 
 16.34  CHILD CARE DEVELOPMENT FUND.] $791,000 
 16.35  is transferred in fiscal year 1999 from 
 16.36  the state's federal TANF block grant to 
 16.37  the state's child care development 
 16.38  fund, and is appropriated to the 
 16.39  commissioner of children, families, and 
 16.40  learning for the purposes of Minnesota 
 16.41  Statutes, section 119B.05. 
 16.42  [TRANSFER FROM STATE TANF RESERVE.] 
 16.43  Notwithstanding the provisions of 
 16.44  Minnesota Statutes, section 256J.03, 
 16.45  $7,799,000 is transferred from the 
 16.46  state TANF reserve account to the 
 16.47  general fund in fiscal year 2000.  
 16.48  Notwithstanding section 7, this 
 16.49  provision expires on July 1, 2000. 
 16.50  (b) Work Grants
 16.51          -0-        (1,000,000)
 16.52  [FOOD STAMP EMPLOYMENT AND TRAINING 
 16.53  APPROPRIATION REDUCTION.] The 
 16.54  appropriation in Laws 1997, chapter 
 16.55  203, article 1, section 2, subdivision 
 16.56  10, paragraph (b), for fiscal year 1999 
 16.57  for work grants is reduced by 
 16.58  $1,000,000.  This reduction shall be 
 16.59  taken from the fiscal year 1999 
 16.60  appropriation for the food stamp 
 16.61  employment and training program. 
 17.1   (c) Child Support Enforcement
 17.2           -0-        (1,100,000)
 17.3   [CHILD SUPPORT CARRYOVER AUTHORITY.] 
 17.4   Any unspent portion of the 
 17.5   appropriation to the commissioner in 
 17.6   Laws 1997, chapter 203, article 1, 
 17.7   section 2, subdivision 10, for child 
 17.8   support enforcement activities for 
 17.9   fiscal year 1998 shall not cancel but 
 17.10  shall be available to the commissioner 
 17.11  for fiscal year 1999.  The 
 17.12  appropriation in Laws 1997, chapter 
 17.13  203, article 1, section 2, subdivision 
 17.14  10, for child support enforcement 
 17.15  activities for fiscal year 1999 is 
 17.16  reduced by $1,100,000.  This reduction 
 17.17  shall not reduce base level funding for 
 17.18  these activities for the 2000-2001 
 17.19  biennium. 
 17.20  (d) General Assistance
 17.21       (6,933,000)   (6,321,000)
 17.22  (e) Minnesota Supplemental Aid
 17.23       (2,802,000)   (4,258,000)
 17.24  Subd. 9.  Economic Support  
 17.25  Management
 17.26  Health Care Access      -0-         1,084,000
 17.27  [ASSESSMENT OF AFFORDABLE HOUSING 
 17.28  SUPPLY.] The commissioner of human 
 17.29  services shall assess the statewide 
 17.30  supply of affordable housing for all 
 17.31  MFIP-S and GA recipients, and report to 
 17.32  the legislature by January 15, 1999, on 
 17.33  the results of this assessment. 
 17.34  Sec. 3.  COMMISSIONER OF HEALTH 
 17.35  Subdivision 1.  Total 
 17.36  Appropriation                            -0-         20,147,000
 17.37                Summary by Fund
 17.38  General                 -0-        19,780,000
 17.39  State Government
 17.40  Special Revenue         -0-           108,000
 17.41  Health Care Access      -0-           259,000
 17.42  This appropriation is added to the 
 17.43  appropriation in Laws 1997, chapter 
 17.44  203, article 1, section 3. 
 17.45  The amounts that may be spent from this 
 17.46  appropriation for each program are 
 17.47  specified in the following subdivisions.
 17.48  Subd. 2.  Health Systems
 17.49  and Special Populations                  -0-         15,459,000
 17.50                Summary by Fund
 17.51  General                 -0-        15,200,000
 18.1   Health Care Access      -0-           259,000
 18.2   [FETAL ALCOHOL SYNDROME.] (a) Of this 
 18.3   appropriation, $5,000,000 in fiscal 
 18.4   year 1999 is from the general fund to 
 18.5   the commissioner for the fetal alcohol 
 18.6   syndrome/fetal alcohol effect (FAS/FAE) 
 18.7   initiatives specified in paragraphs (b) 
 18.8   to (k). 
 18.9   (b) Of the amount in paragraph (a), 
 18.10  $200,000 is transferred to the 
 18.11  commissioner of children, families, and 
 18.12  learning for school-based pilot 
 18.13  programs to identify and implement 
 18.14  effective educational strategies for 
 18.15  individuals with FAS/FAE. 
 18.16  (c) Of the amount in paragraph (a), 
 18.17  $800,000 is for the public awareness 
 18.18  campaign under Minnesota Statutes, 
 18.19  section 145.9266, subdivision 1. 
 18.20  (d) Of the amount in paragraph (a), 
 18.21  $400,000 is to develop a statewide 
 18.22  network of regional FAS diagnostic 
 18.23  clinics under Minnesota Statutes, 
 18.24  section 145.9266, subdivision 2. 
 18.25  (e) Of the amount in paragraph (a), 
 18.26  $150,000 is for professional training 
 18.27  about FAS under Minnesota Statutes, 
 18.28  section 145.9266, subdivision 3. 
 18.29  (f) Of the amount in paragraph (a), 
 18.30  $350,000 is for the fetal alcohol 
 18.31  coordinating board under Minnesota 
 18.32  Statutes, section 145.9266, subdivision 
 18.33  6. 
 18.34  (g) Of the amount in paragraph (a), 
 18.35  $800,000 is transferred to the 
 18.36  commissioner of human services to 
 18.37  expand the maternal and child health 
 18.38  social service programs under Minnesota 
 18.39  Statutes, section 254A.17, subdivision 
 18.40  1.  Of this amount, $184,000 shall be 
 18.41  used by the commissioner of human 
 18.42  services to eliminate the asset 
 18.43  standards for medical assistance 
 18.44  eligibility for pregnant women. 
 18.45  (h) Of the amount in paragraph (a), 
 18.46  $200,000 is for the commissioner to 
 18.47  study the extent of fetal alcohol 
 18.48  syndrome in the state. 
 18.49  (i) Of the amount in paragraph (a), 
 18.50  $400,000 is transferred to the 
 18.51  commissioner of human services for the 
 18.52  intervention and advocacy program under 
 18.53  Minnesota Statutes, section 254A.17, 
 18.54  subdivision 1b. 
 18.55  (j) Of the amount in paragraph (a), 
 18.56  $850,000 is for the FAS community grant 
 18.57  program under Minnesota Statutes, 
 18.58  section 145.9266, subdivision 4. 
 18.59  (k) Of the amount in paragraph (a), 
 18.60  $850,000 is transferred to the 
 19.1   commissioner of human services to 
 19.2   expand treatment services and halfway 
 19.3   houses for pregnant women and women 
 19.4   with children who abuse alcohol during 
 19.5   pregnancy. 
 19.6   [RURAL PHYSICIAN LOAN FORGIVENESS 
 19.7   BUDGET REQUEST.] The budget request for 
 19.8   the rural physician loan forgiveness 
 19.9   program in the 2000-2001 biennial 
 19.10  budget shall detail the amount of funds 
 19.11  carried forward and obligations 
 19.12  canceled. 
 19.13  [CONSUMER ADVISORY BOARD.] Of the 
 19.14  general fund appropriation for fiscal 
 19.15  year 1999, $50,000 is to the 
 19.16  commissioner to reimburse members of 
 19.17  the consumer advisory board for travel, 
 19.18  food, and lodging expenses incurred by 
 19.19  board members in the course of 
 19.20  conducting board duties. 
 19.21  [MEDICAL EDUCATION AND RESEARCH TRUST 
 19.22  FUND.] Of the general fund 
 19.23  appropriation, $10,000,000 in fiscal 
 19.24  year 1999 is to the commissioner for 
 19.25  the medical education and research 
 19.26  trust fund.  Of this amount, $5,000,000 
 19.27  shall become part of base level funding 
 19.28  for the biennium beginning July 1, 1999.
 19.29  [MERC FEDERAL FINANCIAL PARTICIPATION.] 
 19.30  (1) The commissioner of human services 
 19.31  shall seek to maximize federal 
 19.32  financial participation for payments 
 19.33  for medical education and research 
 19.34  costs. 
 19.35  (2) If the commissioner of human 
 19.36  services determines that federal 
 19.37  financial participation is available 
 19.38  for the fiscal year 1999 appropriation 
 19.39  for the medical education and research 
 19.40  trust fund under this subdivision, the 
 19.41  commissioner of health shall transfer 
 19.42  to the commissioner of human services 
 19.43  the amount of state funds necessary to 
 19.44  maximize the federal funds. 
 19.45  (3) The transferred amount, plus the 
 19.46  federal financial participation amount, 
 19.47  shall be distributed to medical 
 19.48  assistance providers according to the 
 19.49  distribution methodology of the medical 
 19.50  education research trust fund 
 19.51  established under Minnesota Statutes, 
 19.52  section 62J.69. 
 19.53  [DIABETES PREVENTION.] Of this 
 19.54  appropriation, $50,000 in fiscal year 
 19.55  1999 from the general fund is to the 
 19.56  commissioner for statewide activities 
 19.57  related to general diabetes prevention, 
 19.58  the development and dissemination of 
 19.59  prevention materials to health care 
 19.60  providers, and for other statewide 
 19.61  activities related to diabetes 
 19.62  prevention and control for targeted 
 19.63  populations who are at high risk for 
 19.64  developing diabetes or health 
 20.1   complications from diabetes. 
 20.2   Subd. 3.  Health Protection             -0-          4,688,000
 20.3                 Summary by Fund
 20.4   General                 -0-         4,580,000
 20.5   State Government 
 20.6   Special Revenue         -0-           108,000
 20.7   [FOOD, BEVERAGE, AND LODGING PROGRAM 
 20.8   STAFF RESTORATION.] Of the 
 20.9   appropriation from the state government 
 20.10  special revenue fund, $101,000 in 
 20.11  fiscal year 1999 is for the 
 20.12  commissioner to restore staffing for 
 20.13  the food, beverage, and lodging program.
 20.14  [OCCUPATIONAL RESPIRATORY DISEASE 
 20.15  INFORMATION SYSTEM.] Of the general 
 20.16  fund appropriation, $250,000 in fiscal 
 20.17  year 1999 is to design an occupational 
 20.18  respiratory disease information 
 20.19  system.  This appropriation is 
 20.20  available until expended.  This 
 20.21  appropriation is added to the base for 
 20.22  the 2000-2001 biennial budget. 
 20.23  [LEAD-SAFE PROPERTY CERTIFICATION 
 20.24  PROGRAM.] Of this appropriation, 
 20.25  $75,000 in fiscal year 1999 is from the 
 20.26  general fund to the commissioner for 
 20.27  the purposes of the lead-safe property 
 20.28  certification program under Minnesota 
 20.29  Statutes, section 144.9511. 
 20.30  [INFECTION CONTROL.] Of the general 
 20.31  fund appropriation, $200,000 in fiscal 
 20.32  year 1999 is for infection control 
 20.33  activities, including training and 
 20.34  technical assistance of health care 
 20.35  personnel to prevent and control 
 20.36  disease outbreaks, and for hospital and 
 20.37  public health laboratory testing and 
 20.38  other activities to monitor trends in 
 20.39  drug-resistant infections.  
 20.40  [CANCER SCREENING.] Of the general fund 
 20.41  appropriation, $1,255,000 in fiscal 
 20.42  year 1999 is for increased cancer 
 20.43  screening and diagnostic services for 
 20.44  women, particularly underserved women, 
 20.45  and to improve cancer screening rates 
 20.46  for the general population.  Of this 
 20.47  amount, at least $855,000 is for grants 
 20.48  to support local boards of health in 
 20.49  providing outreach and coordination and 
 20.50  to reimburse health care providers for 
 20.51  screening and diagnostic tests, and up 
 20.52  to $400,000 is for technical 
 20.53  assistance, consultation, and outreach. 
 20.54  [SEXUALLY TRANSMITTED DISEASE.] (a) of 
 20.55  this appropriation, $300,000 in fiscal 
 20.56  year 1999 is from the general fund to 
 20.57  the commissioner to do the following, 
 20.58  in consultation with the HIV/STD 
 20.59  prevention task force and the 
 20.60  commissioner of children, families, and 
 20.61  learning: 
 21.1   (1) $100,000 to conduct a statewide 
 21.2   assessment of need and capacity to 
 21.3   prevent and treat sexually transmitted 
 21.4   diseases and prepare a comprehensive 
 21.5   plan for how to prevent and treat 
 21.6   sexually transmitted diseases, 
 21.7   including strategies for reducing 
 21.8   infection and for increasing access to 
 21.9   treatment; 
 21.10  (2) $150,000 to conduct research on the 
 21.11  prevalence of sexually transmitted 
 21.12  diseases among populations at highest 
 21.13  risk for infection.  The research may 
 21.14  be done in collaboration with the 
 21.15  University of Minnesota and nonprofit 
 21.16  community health clinics; and 
 21.17  (3) $50,000 to conduct laboratory 
 21.18  screenings for sexually transmitted 
 21.19  diseases at no charge to patients 
 21.20  participating in epidemiological 
 21.21  research activities specified in clause 
 21.22  (2). 
 21.23  (b) This appropriation shall not become 
 21.24  part of the base for the 2000-2001 
 21.25  biennium. 
 21.26  Sec. 4.  HEALTH-RELATED BOARDS 
 21.27  Subdivision 1.  Total       
 21.28  Appropriation                            113,000        123,000 
 21.29  This appropriation is added to the 
 21.30  appropriation in Laws 1997, chapter 
 21.31  203, article 1, section 5. 
 21.32  The appropriations in this section are 
 21.33  from the state government special 
 21.34  revenue fund. 
 21.35  [NO SPENDING IN EXCESS OF REVENUES.] 
 21.36  The commissioner of finance shall not 
 21.37  permit the allotment, encumbrance, or 
 21.38  expenditure of money appropriated in 
 21.39  this section in excess of the 
 21.40  anticipated biennial revenues or 
 21.41  accumulated surplus revenues from fees 
 21.42  collected by the boards.  Neither this 
 21.43  provision nor Minnesota Statutes, 
 21.44  section 214.06, applies to transfers 
 21.45  from the general contingent account. 
 21.46  Subd. 2.  Board of Medical  
 21.47  Practice                                  80,000         90,000
 21.48  This appropriation is added to the 
 21.49  appropriation in Laws 1997, chapter 
 21.50  203, article 1, section 5, subdivision 
 21.51  6, and is for the health professional 
 21.52  services activity. 
 21.53  Subd. 3.  Board of Veterinary 
 21.54  Medicine                                  33,000         33,000
 21.55  This appropriation is added to the 
 21.56  appropriation in Laws 1997, chapter 
 21.57  203, article 1, section 5, subdivision 
 21.58  14, and is for national examination 
 21.59  costs. 
 22.1   Sec. 5.  EMERGENCY MEDICAL 
 22.2   SERVICES BOARD       
 22.3   General                                  -0-             78,000 
 22.4   This appropriation is added to the 
 22.5   appropriation in Laws 1997, chapter 
 22.6   203, article 1, section 6. 
 22.7   [EMERGENCY MEDICAL SERVICES 
 22.8   COMMUNICATIONS NEEDS ASSESSMENT.] (a) 
 22.9   Of this appropriation, $78,000 in 
 22.10  fiscal year 1999 is from the general 
 22.11  fund to the board to conduct an 
 22.12  emergency medical services needs 
 22.13  assessment for areas outside the 
 22.14  seven-county metropolitan area.  The 
 22.15  assessment shall determine the current 
 22.16  status of and need for emergency 
 22.17  medical services communications 
 22.18  equipment.  All regional emergency 
 22.19  medical services programs designated by 
 22.20  the board under Minnesota Statutes 1997 
 22.21  Supplement, section 144E.50, shall 
 22.22  cooperate in the preparation of the 
 22.23  assessment. 
 22.24  (b) The appropriation for this project 
 22.25  shall be distributed through the 
 22.26  emergency medical services system fund 
 22.27  under Minnesota Statutes, section 
 22.28  144E.50, through a request-for-proposal 
 22.29  process.  The board must select a 
 22.30  regional EMS program that receives at 
 22.31  least 20 percent of its funding from 
 22.32  nonstate sources to conduct the 
 22.33  assessment.  The request for proposals 
 22.34  must be issued by August 1, 1998. 
 22.35  (c) A final report with recommendations 
 22.36  shall be presented to the board and the 
 22.37  legislature by July 1, 1999. 
 22.38  (d) This appropriation shall not become 
 22.39  part of base level funding for the 
 22.40  2000-2001 biennium. 
 22.41  Sec. 6.  [CARRYOVER LIMITATION.] None 
 22.42  of the appropriations in this act which 
 22.43  are allowed to be carried forward from 
 22.44  fiscal year 1998 to fiscal year 1999 
 22.45  shall become part of the base level 
 22.46  funding for the 2000-2001 biennial 
 22.47  budget, unless specifically directed by 
 22.48  the legislature. 
 22.49  Sec. 7.  [SUNSET OF UNCODIFIED 
 22.50  LANGUAGE.] All uncodified language 
 22.51  contained in this article expires on 
 22.52  June 30, 1999, unless a different 
 22.53  expiration date is explicit. 
 22.54     Sec. 8.  [EFFECTIVE DATE.] 
 22.55     The appropriations and reductions for fiscal year 1998 in 
 22.56  this article are effective the day following final enactment. 
 22.57                             ARTICLE 2  
 22.58             HEALTH DEPARTMENT AND HEALTH PROFESSIONALS 
 23.1      Section 1.  Minnesota Statutes 1997 Supplement, section 
 23.2   13.99, is amended by adding a subdivision to read: 
 23.3      Subd. 19m.  [DATA HELD BY OFFICE OF HEALTH CARE CONSUMER 
 23.4   ASSISTANCE, ADVOCACY, AND INFORMATION.] Consumer complaint data 
 23.5   collected or maintained by the office of health care consumer 
 23.6   assistance, advocacy, and information under sections 62J.77 and 
 23.7   62J.80 are classified under section 62J.79, subdivision 4. 
 23.8      Sec. 2.  Minnesota Statutes 1997 Supplement, section 
 23.9   62D.11, subdivision 1, is amended to read: 
 23.10     Subdivision 1.  [ENROLLEE COMPLAINT SYSTEM.] Every health 
 23.11  maintenance organization shall establish and maintain a 
 23.12  complaint system, as required under section 62Q.105 to provide 
 23.13  reasonable procedures for the resolution of written complaints 
 23.14  initiated by or on behalf of enrollees concerning the provision 
 23.15  of health care services.  "Provision of health services" 
 23.16  includes, but is not limited to, questions of the scope of 
 23.17  coverage, quality of care, and administrative operations.  The 
 23.18  health maintenance organization must inform enrollees that they 
 23.19  may choose to use alternative dispute resolution arbitration to 
 23.20  appeal a health maintenance organization's internal appeal 
 23.21  decision.  The health maintenance organization must also inform 
 23.22  enrollees that they have the right to use arbitration to appeal 
 23.23  a health maintenance organization's internal appeal decision not 
 23.24  to certify an admission, procedure, service, or extension of 
 23.25  stay under section 62M.06.  If an enrollee chooses to use an 
 23.26  alternative dispute resolution process arbitration, the health 
 23.27  maintenance organization must participate. 
 23.28     Sec. 3.  Minnesota Statutes 1996, section 62J.321, is 
 23.29  amended by adding a subdivision to read: 
 23.30     Subd. 5a.  [PRESCRIPTION DRUG PRICE DISCLOSURE 
 23.31  DATA.] Notwithstanding subdivisions 1 and 5, data collected 
 23.32  under section 62J.381 shall be classified as public data. 
 23.33     Sec. 4.  [62J.381] [PRESCRIPTION DRUG PRICE DISCLOSURE.] 
 23.34     By April 1, 1999, and annually thereafter, hospitals 
 23.35  licensed under chapter 144 and group purchasers required to file 
 23.36  a full report under section 62J.38 and the rules promulgated 
 24.1   thereunder, must submit to the commissioner of health the total 
 24.2   amount of: 
 24.3      (1) aggregate purchases of or payments for prescription 
 24.4   drugs; and 
 24.5      (2) aggregate cash rebates, discounts, other payments 
 24.6   received, and any fees associated with education, data 
 24.7   collection, research, training, or market share movement, which 
 24.8   are received during the previous calendar year from a 
 24.9   manufacturer as defined under section 151.44, paragraph (c), or 
 24.10  wholesale drug distributor as defined under section 151.44, 
 24.11  paragraph (d). 
 24.12  The data collected under this section shall be distributed 
 24.13  through the information clearinghouse under section 62J.2930.  
 24.14  The identification of individual manufacturers or wholesalers or 
 24.15  specific drugs shall not be required under this section.  
 24.16     Sec. 5.  Minnesota Statutes 1997 Supplement, section 
 24.17  62J.69, subdivision 1, is amended to read: 
 24.18     Subdivision 1.  [DEFINITIONS.] For purposes of this 
 24.19  section, the following definitions apply: 
 24.20     (a) "Medical education" means the accredited clinical 
 24.21  training of physicians (medical students and residents), doctor 
 24.22  of pharmacy practitioners, doctors of chiropractic, dentists, 
 24.23  advanced practice nurses (clinical nurse specialist, certified 
 24.24  registered nurse anesthetists, nurse practitioners, and 
 24.25  certified nurse midwives), and physician assistants. 
 24.26     (b) "Clinical training" means accredited training for the 
 24.27  health care practitioners listed in paragraph (a) that is funded 
 24.28  and was historically funded in part by inpatient patient care 
 24.29  revenues and that occurs in both either an inpatient and or 
 24.30  ambulatory patient care settings training site. 
 24.31     (c) "Trainee" means students involved in an accredited 
 24.32  clinical training program for medical education as defined in 
 24.33  paragraph (a). 
 24.34     (d) "Eligible trainee" means a student involved in an 
 24.35  accredited training program for medical education as defined in 
 24.36  paragraph (a), which meets the definition of clinical training 
 25.1   in paragraph (b), who is in a training site that is located in 
 25.2   Minnesota and which has a medical assistance provider number. 
 25.3      (e) "Health care research" means approved clinical, 
 25.4   outcomes, and health services investigations that are funded by 
 25.5   patient out-of-pocket expenses or a third-party payer. 
 25.6      (e) (f) "Commissioner" means the commissioner of health. 
 25.7      (f) (g) "Teaching institutions" means any hospital, medical 
 25.8   center, clinic, or other organization that currently sponsors or 
 25.9   conducts accredited medical education programs or clinical 
 25.10  research in Minnesota. 
 25.11     (h) "Accredited training" means training provided by a 
 25.12  program that is accredited through an organization recognized by 
 25.13  the department of education or the health care financing 
 25.14  administration as the official accrediting body for that program.
 25.15     (i) "Sponsoring institution" means a hospital, school, or 
 25.16  consortium located in Minnesota that sponsors and maintains 
 25.17  primary organizational and financial responsibility for an 
 25.18  accredited medical education program in Minnesota and which is 
 25.19  accountable to the accrediting body. 
 25.20     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
 25.21  62J.69, subdivision 2, is amended to read: 
 25.22     Subd. 2.  [ALLOCATION AND FUNDING FOR MEDICAL EDUCATION AND 
 25.23  RESEARCH.] (a) The commissioner may establish a trust fund for 
 25.24  the purposes of funding medical education and research 
 25.25  activities in the state of Minnesota. 
 25.26     (b) By January 1, 1997, the commissioner may appoint an 
 25.27  advisory committee to provide advice and oversight on the 
 25.28  distribution of funds from the medical education and research 
 25.29  trust fund.  If a committee is appointed, the commissioner 
 25.30  shall:  (1) consider the interest of all stakeholders when 
 25.31  selecting committee members; (2) select members that represent 
 25.32  both urban and rural interest; and (3) select members that 
 25.33  include ambulatory care as well as inpatient perspectives.  The 
 25.34  commissioner shall appoint to the advisory committee 
 25.35  representatives of the following groups:  medical researchers, 
 25.36  public and private academic medical centers, managed care 
 26.1   organizations, Blue Cross and Blue Shield of Minnesota, 
 26.2   commercial carriers, Minnesota Medical Association, Minnesota 
 26.3   Nurses Association, medical product manufacturers, employers, 
 26.4   and other relevant stakeholders, including consumers.  The 
 26.5   advisory committee is governed by section 15.059, for membership 
 26.6   terms and removal of members and will sunset on June 30, 1999. 
 26.7      (c) Eligible applicants for funds are accredited medical 
 26.8   education teaching institutions, consortia, and programs 
 26.9   operating in Minnesota.  Applications must be submitted by the 
 26.10  sponsoring institution on behalf of the teaching program, and 
 26.11  must be received by September 30 of each year for distribution 
 26.12  in January of the following year.  An application for funds must 
 26.13  include the following: 
 26.14     (1) the official name and address of the sponsoring 
 26.15  institution and the official name and address of the facility or 
 26.16  program programs on whose behalf the institution is applying for 
 26.17  funding; 
 26.18     (2) the name, title, and business address of those persons 
 26.19  responsible for administering the funds; 
 26.20     (3) the total number, type, and specialty orientation of 
 26.21  eligible Minnesota-based trainees in for each accredited medical 
 26.22  education program for which funds are being sought the type and 
 26.23  specialty orientation of trainees in the program, the name, 
 26.24  address, and medical assistance provider number of each training 
 26.25  site used in the program, the total number of trainees at each 
 26.26  site, and the total number of eligible trainees at each training 
 26.27  site; 
 26.28     (4) audited clinical training costs per trainee for each 
 26.29  medical education program where available or estimates of 
 26.30  clinical training costs based on audited financial data; 
 26.31     (5) a description of current sources of funding for medical 
 26.32  education costs including a description and dollar amount of all 
 26.33  state and federal financial support, including Medicare direct 
 26.34  and indirect payments; 
 26.35     (6) other revenue received for the purposes of clinical 
 26.36  training; and 
 27.1      (7) a statement identifying unfunded costs; and 
 27.2      (8) other supporting information the commissioner, with 
 27.3   advice from the advisory committee, determines is necessary for 
 27.4   the equitable distribution of funds. 
 27.5      (d) The commissioner shall distribute medical education 
 27.6   funds to all qualifying applicants based on the following basic 
 27.7   criteria:  (1) total medical education funds available; (2) 
 27.8   total eligible trainees in each eligible education program; and 
 27.9   (3) the statewide average cost per trainee, by type of trainee, 
 27.10  in each medical education program.  Funds distributed shall not 
 27.11  be used to displace current funding appropriations from federal 
 27.12  or state sources.  Funds shall be distributed to the sponsoring 
 27.13  institutions indicating the amount to be paid to each of the 
 27.14  sponsor's medical education programs based on the criteria in 
 27.15  this paragraph.  Sponsoring institutions which receive funds 
 27.16  from the trust fund must distribute approved funds to the 
 27.17  medical education program according to the commissioner's 
 27.18  approval letter.  Further, programs must distribute funds among 
 27.19  the sites of training based on the percentage of total program 
 27.20  training performed at each site. as specified in the 
 27.21  commissioner's approval letter.  Any funds not distributed as 
 27.22  directed by the commissioner's approval letter shall be returned 
 27.23  to the medical education and research trust fund within 30 days 
 27.24  of a notice from the commissioner.  The commissioner shall 
 27.25  distribute returned funds to the appropriate entities in 
 27.26  accordance with the commissioner's approval letter. 
 27.27     (e) Medical education programs receiving funds from the 
 27.28  trust fund must submit annual cost and program reports a medical 
 27.29  education and research grant verification report (GVR) through 
 27.30  the sponsoring institution based on criteria established by the 
 27.31  commissioner.  If the sponsoring institution fails to submit the 
 27.32  GVR by the stated deadline, or to request and meet the deadline 
 27.33  for an extension, the sponsoring institution is required to 
 27.34  return the full amount of the medical education and research 
 27.35  trust fund grant to the medical education and research trust 
 27.36  fund within 30 days of a notice from the commissioner.  The 
 28.1   commissioner shall distribute returned funds to the appropriate 
 28.2   entities in accordance with the commissioner's approval letter.  
 28.3   The reports must include:  
 28.4      (1) the total number of eligible trainees in the program; 
 28.5      (2) the programs and residencies funded, the amounts of 
 28.6   trust fund payments to each program, and within each program, 
 28.7   the percentage dollar amount distributed to each training site; 
 28.8   and 
 28.9      (3) the average cost per trainee and a detailed breakdown 
 28.10  of the components of those costs; 
 28.11     (4) other state or federal appropriations received for the 
 28.12  purposes of clinical training; 
 28.13     (5) other revenue received for the purposes of clinical 
 28.14  training; and 
 28.15     (6) other information the commissioner, with advice from 
 28.16  the advisory committee, deems appropriate to evaluate the 
 28.17  effectiveness of the use of funds for clinical training.  
 28.18     The commissioner, with advice from the advisory committee, 
 28.19  will provide an annual summary report to the legislature on 
 28.20  program implementation due February 15 of each year. 
 28.21     (f) The commissioner is authorized to distribute funds made 
 28.22  available through: 
 28.23     (1) voluntary contributions by employers or other entities; 
 28.24     (2) allocations for the department of human services to 
 28.25  support medical education and research; and 
 28.26     (3) other sources as identified and deemed appropriate by 
 28.27  the legislature for inclusion in the trust fund. 
 28.28     (g) The advisory committee shall continue to study and make 
 28.29  recommendations on:  
 28.30     (1) the funding of medical research consistent with work 
 28.31  currently mandated by the legislature and under way at the 
 28.32  department of health; and 
 28.33     (2) the costs and benefits associated with medical 
 28.34  education and research. 
 28.35     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
 28.36  62J.69, is amended by adding a subdivision to read: 
 29.1      Subd. 4.  [TRANSFERS FROM THE COMMISSIONER OF HUMAN 
 29.2   SERVICES.] (a) The amount transferred according to section 
 29.3   256B.69, subdivision 5c, shall be distributed to qualifying 
 29.4   applicants based on a distribution formula that reflects a 
 29.5   summation of two factors: 
 29.6      (1) an education factor, which is determined by the total 
 29.7   number of eligible trainees and the total statewide average 
 29.8   costs per trainee, by type of trainee, in each program; and 
 29.9      (2) a public program volume factor, which is determined by 
 29.10  the total volume of public program revenue received by each 
 29.11  training site as a percentage of all public program revenue 
 29.12  received by all training sites in the trust fund pool.  
 29.13     In this formula, the education factor shall be weighted at 
 29.14  50 percent and the public program volume factor shall be 
 29.15  weighted at 50 percent. 
 29.16     (b) Public program revenue for the formula in paragraph (a) 
 29.17  shall include revenue from medical assistance, prepaid medical 
 29.18  assistance, general assistance medical care, and prepaid general 
 29.19  assistance medical care. 
 29.20     (c) Training sites that receive no public program revenue 
 29.21  shall be ineligible for payments from the prepaid medical 
 29.22  assistance program transfer pool. 
 29.23     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
 29.24  62J.69, is amended by adding a subdivision to read: 
 29.25     Subd. 5.  [REVIEW OF ELIGIBLE PROVIDERS.] (a) Provider 
 29.26  groups added after January 1, 1998, to the list of providers 
 29.27  eligible for the trust fund shall not receive funding from the 
 29.28  trust fund without prior evaluation by the commissioner and the 
 29.29  medical education and research costs advisory committee.  The 
 29.30  evaluation shall consider the degree to which the training of 
 29.31  the provider group: 
 29.32     (1) takes place in patient care settings, which are 
 29.33  consistent with the purposes of this section; 
 29.34     (2) is funded with patient care revenues; 
 29.35     (3) takes place in patient care settings, which face 
 29.36  increased financial pressure as a result of competition with 
 30.1   nonteaching patient care entities; and 
 30.2      (4) emphasizes primary care or specialties, which are in 
 30.3   undersupply in Minnesota. 
 30.4      Results of this evaluation shall be reported to the 
 30.5   legislative commission on health care access.  The legislative 
 30.6   commission on health care access must approve funding for the 
 30.7   provider group prior to their receiving any funding from the 
 30.8   trust fund.  In the event that a reviewed provider group is not 
 30.9   approved by the legislative commission on health care access, 
 30.10  trainees in that provider group shall be considered ineligible 
 30.11  trainees for the trust fund distribution. 
 30.12     (b) The commissioner and the medical education and research 
 30.13  costs advisory committee may also review provider groups, which 
 30.14  were added to the eligible list of provider groups prior to 
 30.15  January 1, 1998, to assure that the trust fund money continues 
 30.16  to be distributed consistent with the purpose of this section.  
 30.17  The results of any such reviews must be reported to the 
 30.18  legislative commission on health care access.  Trainees in 
 30.19  provider groups, which were added prior to January 1, 1998, and 
 30.20  which are reviewed by the commissioner and the medical education 
 30.21  and research costs advisory committee, shall be considered 
 30.22  eligible trainees for purposes of the trust fund distribution 
 30.23  unless and until the legislative commission on health care 
 30.24  access disapproves their eligibility, in which case they shall 
 30.25  be considered ineligible trainees. 
 30.26     Sec. 9.  [62J.701] [GOVERNMENTAL PROGRAMS.] 
 30.27     Beginning January 1, 1999, the provisions in paragraphs (a) 
 30.28  to (d) apply. 
 30.29     (a) For purposes of sections 62J.695 to 62J.80, the 
 30.30  requirements and other provisions that apply to health plan 
 30.31  companies also apply to governmental programs. 
 30.32     (b) For purposes of this section, "governmental programs" 
 30.33  means the medical assistance program, the MinnesotaCare program, 
 30.34  the general assistance medical care program, the state employee 
 30.35  group insurance program, the public employees insurance program 
 30.36  under section 43A.316, and coverage provided by political 
 31.1   subdivisions under section 471.617. 
 31.2      (c) Notwithstanding paragraph (a), section 62J.72 does not 
 31.3   apply to the fee-for-service programs under medical assistance, 
 31.4   MinnesotaCare, and general assistance medical care. 
 31.5      (d) If a state commissioner or local unit of government 
 31.6   contracts with a health plan company or a third party 
 31.7   administrator, the contract may assign any obligations under 
 31.8   paragraph (a) to the health plan company or third party 
 31.9   administrator.  Nothing in this paragraph shall be construed to 
 31.10  remove or diminish any enforcement responsibilities of the 
 31.11  commissioners of health or commerce provided in sections 62J.695 
 31.12  to 62J.80. 
 31.13     Sec. 10.  Minnesota Statutes 1997 Supplement, section 
 31.14  62J.71, subdivision 1, is amended to read: 
 31.15     Subdivision 1.  [PROHIBITED AGREEMENTS AND DIRECTIVES.] The 
 31.16  following types of agreements and directives are contrary to 
 31.17  state public policy, are prohibited under this section, and are 
 31.18  null and void: 
 31.19     (1) any agreement or directive that prohibits a health care 
 31.20  provider from communicating with an enrollee with respect to the 
 31.21  enrollee's health status, health care, or treatment options, if 
 31.22  the health care provider is acting in good faith and within the 
 31.23  provider's scope of practice as defined by law; 
 31.24     (2) any agreement or directive that prohibits a health care 
 31.25  provider from making a recommendation regarding the suitability 
 31.26  or desirability of a health plan company, health insurer, or 
 31.27  health coverage plan for an enrollee, unless the provider has a 
 31.28  financial conflict of interest in the enrollee's choice of 
 31.29  health plan company, health insurer, or health coverage plan; 
 31.30     (3) any agreement or directive that prohibits a provider 
 31.31  from providing testimony, supporting or opposing legislation, or 
 31.32  making any other contact with state or federal legislators or 
 31.33  legislative staff or with state and federal executive branch 
 31.34  officers or staff; 
 31.35     (4) any agreement or directive that prohibits a health care 
 31.36  provider from disclosing accurate information about whether 
 32.1   services or treatment will be paid for by a patient's health 
 32.2   plan company or health insurer or health coverage plan; and 
 32.3      (5) any agreement or directive that prohibits a health care 
 32.4   provider from informing an enrollee about the nature of the 
 32.5   reimbursement methodology used by an enrollee's health plan 
 32.6   company, health insurer, or health coverage plan to pay the 
 32.7   provider. 
 32.8      Sec. 11.  Minnesota Statutes 1997 Supplement, section 
 32.9   62J.71, subdivision 3, is amended to read: 
 32.10     Subd. 3.  [RETALIATION PROHIBITED.] No person, health plan 
 32.11  company, or other organization may take retaliatory action 
 32.12  against a health care provider solely on the grounds that the 
 32.13  provider: 
 32.14     (1) refused to enter into an agreement or provide services 
 32.15  or information in a manner that is prohibited under this section 
 32.16  or took any of the actions listed in subdivision 1; 
 32.17     (2) disclosed accurate information about whether a health 
 32.18  care service or treatment is covered by an enrollee's health 
 32.19  plan company, health insurer, or health coverage plan; or 
 32.20     (3) discussed diagnostic, treatment, or referral options 
 32.21  that are not covered or are limited by the enrollee's health 
 32.22  plan company, health insurer, or health coverage plan; 
 32.23     (4) criticized coverage of the enrollee's health plan 
 32.24  company, health insurer, or health coverage plan; or 
 32.25     (5) expressed personal disagreement with a decision made by 
 32.26  a person, organization, or health care provider regarding 
 32.27  treatment or coverage provided to a patient of the provider, or 
 32.28  assisted or advocated for the patient in seeking reconsideration 
 32.29  of such a decision, provided the health care provider makes it 
 32.30  clear that the provider is acting in a personal capacity and not 
 32.31  as a representative of or on behalf of the entity that made the 
 32.32  decision. 
 32.33     Sec. 12.  Minnesota Statutes 1997 Supplement, section 
 32.34  62J.71, subdivision 4, is amended to read: 
 32.35     Subd. 4.  [EXCLUSION.] (a) Nothing in this section 
 32.36  prohibits a health plan an entity that is subject to this 
 33.1   section from taking action against a provider if the health plan 
 33.2   entity has evidence that the provider's actions are illegal, 
 33.3   constitute medical malpractice, or are contrary to accepted 
 33.4   medical practices. 
 33.5      (b) Nothing in this section prohibits a contract provision 
 33.6   or directive that requires any contracting party to keep 
 33.7   confidential or to not use or disclose the specific amounts paid 
 33.8   to a provider, provider fee schedules, provider salaries, and 
 33.9   other proprietary information of a specific health plan or 
 33.10  health plan company entity that is subject to this section.  
 33.11     Sec. 13.  Minnesota Statutes 1997 Supplement, section 
 33.12  62J.72, subdivision 1, is amended to read: 
 33.13     Subdivision 1.  [WRITTEN DISCLOSURE.] (a) A health plan 
 33.14  company, as defined under section 62J.70, subdivision 3, a 
 33.15  health care network cooperative as defined under section 62R.04, 
 33.16  subdivision 3, and a health care provider as defined under 
 33.17  section 62J.70, subdivision 2, shall, during open enrollment, 
 33.18  upon enrollment, and annually thereafter, provide enrollees with 
 33.19  a description of the general nature of the reimbursement 
 33.20  methodologies used by the health plan company, health insurer, 
 33.21  or health coverage plan to pay providers.  The description must 
 33.22  explain clearly any aspect of the reimbursement methodology that 
 33.23  creates a financial incentive for the health care provider to 
 33.24  limit or restrict the health care provided to enrollees.  An 
 33.25  entity required to disclose shall also disclose if no 
 33.26  reimbursement methodology is used that creates a financial 
 33.27  incentive for the health care provider to limit or restrict the 
 33.28  health care provided to enrollees.  This description may be 
 33.29  incorporated into the member handbook, subscriber contract, 
 33.30  certificate of coverage, or other written enrollee 
 33.31  communication.  The general reimbursement methodology shall be 
 33.32  made available to employers at the time of open enrollment.  
 33.33     (b) Health plan companies, health care network 
 33.34  cooperatives, and providers must, upon request, provide an 
 33.35  enrollee with specific information regarding the reimbursement 
 33.36  methodology, including, but not limited to, the following 
 34.1   information:  
 34.2      (1) a concise written description of the provider payment 
 34.3   plan, including any incentive plan applicable to the enrollee; 
 34.4      (2) a written description of any incentive to the provider 
 34.5   relating to the provision of health care services to enrollees, 
 34.6   including any compensation arrangement that is dependent on the 
 34.7   amount of health coverage or health care services provided to 
 34.8   the enrollee, or the number of referrals to or utilization of 
 34.9   specialists; and 
 34.10     (3) a written description of any incentive plan that 
 34.11  involves the transfer of financial risk to the health care 
 34.12  provider. 
 34.13     (c) The disclosure statement describing the general nature 
 34.14  of the reimbursement methodologies must comply with the 
 34.15  Readability of Insurance Policies Act in chapter 72C.  
 34.16  Notwithstanding any other law to the contrary, the disclosure 
 34.17  statement may voluntarily be filed with the commissioner for 
 34.18  approval and must be filed with and approved by the commissioner 
 34.19  prior to its use. 
 34.20     (d) A disclosure statement that has voluntarily been filed 
 34.21  with the commissioner for approval under chapter 72C or 
 34.22  voluntarily filed with the commissioner for approval for 
 34.23  purposes other than pursuant to chapter 72C paragraph (c) is 
 34.24  deemed approved 30 days after the date of filing, unless 
 34.25  approved or disapproved by the commissioner on or before the end 
 34.26  of that 30-day period. 
 34.27     (e) The disclosure statement describing the general nature 
 34.28  of the reimbursement methodologies must be provided upon request 
 34.29  in English, Spanish, Vietnamese, and Hmong.  In addition, 
 34.30  reasonable efforts must be made to provide information contained 
 34.31  in the disclosure statement to other non-English-speaking 
 34.32  enrollees. 
 34.33     (f) Health plan companies and providers may enter into 
 34.34  agreements to determine how to respond to enrollee requests 
 34.35  received by either the provider or the health plan company.  
 34.36  This subdivision does not require disclosure of specific amounts 
 35.1   paid to a provider, provider fee schedules, provider salaries, 
 35.2   or other proprietary information of a specific health plan 
 35.3   company or health insurer or health coverage plan or provider. 
 35.4      Sec. 14.  Minnesota Statutes 1997 Supplement, section 
 35.5   62J.75, is amended to read: 
 35.6      62J.75 [CONSUMER ADVISORY BOARD.] 
 35.7      (a) The consumer advisory board consists of 18 members 
 35.8   appointed in accordance with paragraph (b).  All members must be 
 35.9   public, consumer members who: 
 35.10     (1) do not have and never had a material interest in either 
 35.11  the provision of health care services or in an activity directly 
 35.12  related to the provision of health care services, such as health 
 35.13  insurance sales or health plan administration; 
 35.14     (2) are not registered lobbyists; and 
 35.15     (3) are not currently responsible for or directly involved 
 35.16  in the purchasing of health insurance for a business or 
 35.17  organization. 
 35.18     (b) The governor, the speaker of the house of 
 35.19  representatives, and the subcommittee on committees of the 
 35.20  committee on rules and administration of the senate shall each 
 35.21  appoint two six members.  The Indian affairs council, the 
 35.22  council on affairs of Chicano/Latino people, the council on 
 35.23  Black Minnesotans, the council on Asian-Pacific Minnesotans, 
 35.24  mid-Minnesota legal assistance, and the Minnesota chamber of 
 35.25  commerce shall each appoint one member.  The member appointed by 
 35.26  the Minnesota chamber of commerce must represent small business 
 35.27  interests.  The health care campaign of Minnesota, Minnesotans 
 35.28  for affordable health care, and consortium for citizens with 
 35.29  disabilities shall each appoint two members.  Members serve 
 35.30  without compensation or reimbursement for expenses.  Members may 
 35.31  be compensated in accordance with section 15.059, subdivision 3, 
 35.32  except that members shall not receive per diem compensation or 
 35.33  reimbursements for child care expenses. 
 35.34     (c) The board shall advise the commissioners of health and 
 35.35  commerce on the following: 
 35.36     (1) the needs of health care consumers and how to better 
 36.1   serve and educate the consumers on health care concerns and 
 36.2   recommend solutions to identified problems; and 
 36.3      (2) consumer protection issues in the self-insured market, 
 36.4   including, but not limited to, public education needs. 
 36.5      The board also may make recommendations to the legislature 
 36.6   on these issues. 
 36.7      (d) The board and this section expire June 30, 2001. 
 36.8      Sec. 15.  [62J.77] [DEFINITIONS.] 
 36.9      Subdivision 1.  [APPLICABILITY.] For purposes of sections 
 36.10  62J.77 to 62J.80, the terms defined in this section have the 
 36.11  meanings given them. 
 36.12     Subd. 2.  [ENROLLEE.] "Enrollee" means a natural person 
 36.13  covered by a health plan company, health insurance, or health 
 36.14  coverage plan and includes an insured, policyholder, subscriber, 
 36.15  contract holder, member, covered person, or certificate holder. 
 36.16     Subd. 3.  [PATIENT.] "Patient" means a former, current, or 
 36.17  prospective patient of a health care provider.  
 36.18     Subd. 4.  [COMMISSIONER.] "Commissioner" means the 
 36.19  commissioner of health. 
 36.20     Sec. 16.  [62J.78] [ESTABLISHMENT; ORGANIZATION.] 
 36.21     Subdivision 1.  [GENERAL.] The commissioner shall establish 
 36.22  within the department of health the office of health care 
 36.23  consumer assistance, advocacy, and information to provide 
 36.24  assistance, advocacy, and information to all health care 
 36.25  consumers within the state.  The office shall have no regulatory 
 36.26  power or authority, shall be separated from all regulatory 
 36.27  functions within the department of health, and shall not provide 
 36.28  legal representation in a court of law. 
 36.29     Subd. 2.  [EXECUTIVE DIRECTOR.] An executive director shall 
 36.30  be appointed by the commissioner, in consultation with the 
 36.31  consumer advisory board, and shall report directly to the 
 36.32  commissioner.  The executive director must be selected without 
 36.33  regard to political affiliation and must be a person who has 
 36.34  knowledge and experience concerning the needs and rights of 
 36.35  health care consumers and must be qualified to analyze questions 
 36.36  of law, administrative functions, and public policy.  No person 
 37.1   may serve as executive director while holding another public 
 37.2   office.  The director shall serve in the unclassified service.  
 37.3      Subd. 3.  [STAFF.] The executive director shall appoint at 
 37.4   least nine consumer advocates to discharge the responsibilities 
 37.5   and duties of the office. 
 37.6      Subd. 4.  [TRAINING.] The executive director shall ensure 
 37.7   that the consumer advocates are adequately trained. 
 37.8      Subd. 5.  [STATEWIDE ADVOCACY.] The executive director 
 37.9   shall assign a consumer advocate to represent each regional 
 37.10  coordinating board's geographic area. 
 37.11     Subd. 6.  [FINANCIAL INTEREST.] The executive director and 
 37.12  staff must not have any direct personal financial interest in 
 37.13  the health care system, except as an individual consumer of 
 37.14  health care services. 
 37.15     Subd. 7.  [ADMINISTRATION.] To the extent practical, the 
 37.16  office of health care consumer assistance, advocacy, and 
 37.17  information and all ombudsman offices with health care 
 37.18  responsibilities shall have their telephone systems linked in 
 37.19  order to facilitate immediate referrals. 
 37.20     Sec. 17.  [62J.79] [DUTIES AND POWERS OF THE OFFICE OF 
 37.21  HEALTH CARE CONSUMER ASSISTANCE, ADVOCACY, AND INFORMATION.] 
 37.22     Subdivision 1.  [DUTIES.] (a) The office of health care 
 37.23  consumer assistance, advocacy, and information shall provide 
 37.24  information and assistance to all health care consumers by: 
 37.25     (1) assisting patients and enrollees in understanding and 
 37.26  asserting their contractual and legal rights, including the 
 37.27  rights under an alternative dispute resolution process.  This 
 37.28  assistance may include advocacy for enrollees in administrative 
 37.29  proceedings or other formal or informal dispute resolution 
 37.30  processes; 
 37.31     (2) assisting enrollees in obtaining health care referrals 
 37.32  under their health plan company, health insurance, or health 
 37.33  coverage plan; 
 37.34     (3) assisting patients and enrollees in accessing the 
 37.35  services of governmental agencies, regulatory boards, and other 
 37.36  state consumer assistance programs, ombudsman, or advocacy 
 38.1   services whenever appropriate so that the patient or enrollee 
 38.2   can take full advantage of existing mechanisms for resolving 
 38.3   complaints; 
 38.4      (4) referring patients and enrollees to governmental 
 38.5   agencies and regulatory boards for the investigation of health 
 38.6   care complaints and for enforcement action; 
 38.7      (5) educating and training enrollees about their health 
 38.8   plan company, health insurance, or health coverage plan in order 
 38.9   to enable them to assert their rights and to understand their 
 38.10  responsibilities; 
 38.11     (6) assisting enrollees in receiving a timely resolution of 
 38.12  their complaints; 
 38.13     (7) monitoring health care complaints addressed by the 
 38.14  office to identify specific complaint patterns or areas of 
 38.15  potential improvement; 
 38.16     (8) recommending to health plan companies ways to identify 
 38.17  and remove any barriers that might delay or impede the health 
 38.18  plan company's effort to resolve consumer complaints; and 
 38.19     (9) in performing the duties specified in clauses (1) to 
 38.20  (8), taking into consideration the special situations of 
 38.21  patients and enrollees who have unique culturally defined needs. 
 38.22     (b) The executive director shall prioritize the duties 
 38.23  listed in this subdivision within the appropriations allocated.  
 38.24     Subd. 2.  [COMMUNICATION.] (a) The executive director shall 
 38.25  meet at least six times per year with the consumer advisory 
 38.26  board.  The executive director shall share all public 
 38.27  information obtained by the office of health care consumer 
 38.28  assistance, advocacy, and information with the consumer advisory 
 38.29  board in order to assist the consumer advisory board in its role 
 38.30  of advising the commissioners of health and commerce and the 
 38.31  legislature in accordance with section 62J.75.  
 38.32     (b) The executive director shall have the authority to make 
 38.33  recommendations to the legislature on any issue related to the 
 38.34  needs and interests of health care consumers. 
 38.35     Subd. 3.  [REPORTS.] Beginning July 1, 1999, the executive 
 38.36  director, on at least a quarterly basis, shall provide data from 
 39.1   the health care complaints addressed by the office to the 
 39.2   commissioners of health and commerce, the consumer advisory 
 39.3   board, the Minnesota council of health plans, and the Insurance 
 39.4   Federation of Minnesota.  Beginning January 15, 2000, the 
 39.5   executive director must make an annual written report to the 
 39.6   legislature regarding activities of the office, including 
 39.7   recommendations on improving health care consumer assistance and 
 39.8   complaint resolution processes.  
 39.9      Subd. 4.  [DATA PRIVACY.] (a) Consumer complaint data, 
 39.10  including medical records and other documentation, provided by a 
 39.11  patient or enrollee to the office of health care consumer 
 39.12  assistance, advocacy, and information shall be classified as 
 39.13  private data on individuals under section 13.02, subdivision 12. 
 39.14     (b) Except as provided in paragraph (a), all data collected 
 39.15  or maintained by the office in the course of assisting a patient 
 39.16  or enrollee in resolving a complaint, including data collected 
 39.17  or maintained for the purpose of assistance during a formal or 
 39.18  informal dispute resolution process, shall be classified as 
 39.19  investigative data under section 13.39 except that inactive 
 39.20  investigative data shall be classified as private data on 
 39.21  individuals under section 13.02, subdivision 12. 
 39.22     Sec. 18.  [62J.80] [RETALIATION.] 
 39.23     A health plan company or health care provider shall not 
 39.24  retaliate or take adverse action against an enrollee or patient 
 39.25  who, in good faith, makes a complaint against a health plan 
 39.26  company or health care provider.  If retaliation is suspected, 
 39.27  the executive director may report it to the appropriate 
 39.28  regulatory authority.  
 39.29     Sec. 19.  Minnesota Statutes 1996, section 62Q.095, 
 39.30  subdivision 3, is amended to read: 
 39.31     Subd. 3.  [MANDATORY OFFERING TO ENROLLEES.] (a) Each 
 39.32  health plan company shall offer to enrollees the option of 
 39.33  receiving covered services through the expanded network of 
 39.34  allied independent health providers established under 
 39.35  subdivisions 1 and 2.  This expanded network option may be 
 39.36  offered as a separate health plan.  The network may establish 
 40.1   separate premium rates and cost-sharing requirements for this 
 40.2   expanded network plan, as long as these premium rates and 
 40.3   cost-sharing requirements are actuarially justified and approved 
 40.4   by the commissioner.  This subdivision does not apply to 
 40.5   Medicare, medical assistance, general assistance medical care, 
 40.6   and MinnesotaCare.  This subdivision is effective January 1, 
 40.7   1995, and applies to health plans issued or renewed, or offers 
 40.8   of health plans to be issued or renewed, on or after January 1, 
 40.9   1995, except that this subdivision is effective January 1, 1996, 
 40.10  for collective bargaining agreements of the department of 
 40.11  employee relations and the University of Minnesota. 
 40.12     (b) Information on this expanded provider network option 
 40.13  must be provided by each health plan company during open 
 40.14  enrollment and upon enrollment.  
 40.15     Sec. 20.  Minnesota Statutes 1997 Supplement, section 
 40.16  62Q.105, subdivision 1, is amended to read: 
 40.17     Subdivision 1.  [ESTABLISHMENT.] Each health plan company 
 40.18  shall establish and make available to enrollees, by July 1, 1998 
 40.19  1999, an informal complaint resolution process that meets the 
 40.20  requirements of this section.  A health plan company must make 
 40.21  reasonable efforts to resolve enrollee complaints, and must 
 40.22  inform complainants in writing of the company's decision within 
 40.23  30 days of receiving the complaint.  The complaint resolution 
 40.24  process must treat the complaint and information related to it 
 40.25  as required under sections 72A.49 to 72A.505.  
 40.26     Sec. 21.  [62Q.107] [PROHIBITED PROVISION; EFFECT OF DENIAL 
 40.27  OF CLAIM.] 
 40.28     Beginning January 1, 1999, no health plan, including the 
 40.29  coverages described in section 62A.011, subdivision 3, clauses 
 40.30  (7) and (10), may specify a standard of review upon which a 
 40.31  court may review denial of a claim or of any other decision made 
 40.32  by a health plan company with respect to an enrollee.  This 
 40.33  section prohibits limiting court review to a determination of 
 40.34  whether the health plan company's decision is arbitrary and 
 40.35  capricious, an abuse of discretion, or any other standard less 
 40.36  favorable to the enrollee than a preponderance of the evidence.  
 41.1      Sec. 22.  Minnesota Statutes 1997 Supplement, section 
 41.2   62Q.30, is amended to read: 
 41.3      62Q.30 [EXPEDITED FACT FINDING AND DISPUTE RESOLUTION 
 41.4   PROCESS.] 
 41.5      The commissioner shall establish an expedited fact finding 
 41.6   and dispute resolution process to assist enrollees of health 
 41.7   plan companies with contested treatment, coverage, and service 
 41.8   issues to be in effect July 1, 1998 1999.  If the disputed issue 
 41.9   relates to whether a service is appropriate and necessary, the 
 41.10  commissioner shall issue an order only after consulting with 
 41.11  appropriate experts knowledgeable, trained, and practicing in 
 41.12  the area in dispute, reviewing pertinent literature, and 
 41.13  considering the availability of satisfactory alternatives.  The 
 41.14  commissioner shall take steps including but not limited to 
 41.15  fining, suspending, or revoking the license of a health plan 
 41.16  company that is the subject of repeated orders by the 
 41.17  commissioner that suggests a pattern of inappropriate 
 41.18  underutilization.  
 41.19     Sec. 23.  Minnesota Statutes 1997 Supplement, section 
 41.20  103I.208, subdivision 2, is amended to read: 
 41.21     Subd. 2.  [PERMIT FEE.] The permit fee to be paid by a 
 41.22  property owner is:  
 41.23     (1) for a well that is not in use under a maintenance 
 41.24  permit, $100 annually; 
 41.25     (2) for construction of a monitoring well, $120, which 
 41.26  includes the state core function fee; 
 41.27     (3) for a monitoring well that is unsealed under a 
 41.28  maintenance permit, $100 annually; 
 41.29     (4) for monitoring wells used as a leak detection device at 
 41.30  a single motor fuel retail outlet or, a single petroleum bulk 
 41.31  storage site excluding tank farms, or a single agricultural 
 41.32  chemical facility site, the construction permit fee is $120, 
 41.33  which includes the state core function fee, per site regardless 
 41.34  of the number of wells constructed on the site, and the annual 
 41.35  fee for a maintenance permit for unsealed monitoring wells is 
 41.36  $100 per site regardless of the number of monitoring wells 
 42.1   located on site; 
 42.2      (5) for a groundwater thermal exchange device, in addition 
 42.3   to the notification fee for wells, $120, which includes the 
 42.4   state core function fee; 
 42.5      (6) for a vertical heat exchanger, $120; 
 42.6      (7) for a dewatering well that is unsealed under a 
 42.7   maintenance permit, $100 annually for each well, except a 
 42.8   dewatering project comprising more than five wells shall be 
 42.9   issued a single permit for $500 annually for wells recorded on 
 42.10  the permit; and 
 42.11     (8) for excavating holes for the purpose of installing 
 42.12  elevator shafts, $120 for each hole. 
 42.13     Sec. 24.  Minnesota Statutes 1997 Supplement, section 
 42.14  123.70, subdivision 10, as amended by Laws 1998, chapter 305, 
 42.15  section 4, is amended to read: 
 42.16     Subd. 10.  A statement required to be submitted under 
 42.17  subdivisions 1, 2, and 4 to document evidence of immunization 
 42.18  shall include month, day, and year for immunizations 
 42.19  administered after January 1, 1990.  
 42.20     (a) For persons enrolled in grades 7 and 12 during the 
 42.21  1996-1997 school term, the statement must indicate that the 
 42.22  person has received a dose of tetanus and diphtheria toxoid no 
 42.23  earlier than 11 years of age. 
 42.24     (b) Except as specified in paragraph (e), for persons 
 42.25  enrolled in grades 7, 8, and 12 during the 1997-1998 school 
 42.26  term, the statement must indicate that the person has received a 
 42.27  dose of tetanus and diphtheria toxoid no earlier than 11 years 
 42.28  of age.  
 42.29     (c) Except as specified in paragraph (e), for persons 
 42.30  enrolled in grades 7 through 12 during the 1998-1999 school term 
 42.31  and for each year thereafter, the statement must indicate that 
 42.32  the person has received a dose of tetanus and diphtheria toxoid 
 42.33  no earlier than 11 years of age.  
 42.34     (d) For persons enrolled in grades 7 through 12 during the 
 42.35  1996-1997 school year and for each year thereafter, the 
 42.36  statement must indicate that the person has received at least 
 43.1   two doses of vaccine against measles, mumps, and rubella, given 
 43.2   alone or separately and given not less than one month apart. 
 43.3      (e) A person who has received at least three doses of 
 43.4   tetanus and diphtheria toxoids, with the most recent dose given 
 43.5   after age six and before age 11, is not required to have 
 43.6   additional immunization against diphtheria and tetanus until ten 
 43.7   years have elapsed from the person's most recent dose of tetanus 
 43.8   and diphtheria toxoid. 
 43.9      (f) The requirement for hepatitis B vaccination shall apply 
 43.10  to persons enrolling in kindergarten beginning with the 
 43.11  2000-2001 school term. 
 43.12     (g) The requirement for hepatitis B vaccination shall apply 
 43.13  to persons enrolling in kindergarten through grade 7 beginning 
 43.14  with the 2007-2008 2001-2002 school term. 
 43.15     Sec. 25.  Minnesota Statutes 1997 Supplement, section 
 43.16  144.1494, subdivision 1, is amended to read: 
 43.17     Subdivision 1.  [CREATION OF ACCOUNT.] A rural physician 
 43.18  education account is established in the health care access 
 43.19  fund.  The commissioner shall use money from the account to 
 43.20  establish a loan forgiveness program for medical residents 
 43.21  agreeing to practice in designated rural areas, as defined by 
 43.22  the commissioner.  Appropriations made to this account do not 
 43.23  cancel and are available until expended, except that at the end 
 43.24  of each biennium the commissioner shall cancel to the health 
 43.25  care access fund any remaining unobligated balance in this 
 43.26  account. 
 43.27     Sec. 26.  [144.6905] [OCCUPATIONAL RESPIRATORY DISEASE 
 43.28  INFORMATION SYSTEM ADVISORY GROUP.] 
 43.29     Subdivision 1.  [ADVISORY GROUP.] The commissioner of 
 43.30  health shall convene an occupational respiratory disease 
 43.31  advisory group and shall consult with the group on the 
 43.32  development, implementation, and ongoing operation of an 
 43.33  occupational respiratory disease information system.  Membership 
 43.34  in the group shall include representatives of academia, 
 43.35  government, industry, labor, medicine, and consumers from areas 
 43.36  of the state targeted by the information system.  From members 
 44.1   of the advisory group, the commissioner shall form a technical 
 44.2   and medical committee to create information system protocols and 
 44.3   a legal and policy committee to address data privacy issues.  
 44.4   The advisory group is governed by section 15.059, except that 
 44.5   members shall not receive per diem compensation. 
 44.6      Subd. 2.  [DATA PROVISIONS.] No individually identifying 
 44.7   data shall be collected or entered into the occupational 
 44.8   respiratory disease information system without further action of 
 44.9   the legislature. 
 44.10     Sec. 27.  Minnesota Statutes 1996, section 144.701, 
 44.11  subdivision 1, is amended to read: 
 44.12     Subdivision 1.  [CONSUMER INFORMATION.] The commissioner of 
 44.13  health shall ensure that the total costs, total 
 44.14  revenues, overall utilization, and total services of each 
 44.15  hospital and each outpatient surgical center are reported to the 
 44.16  public in a form understandable to consumers.  
 44.17     Sec. 28.  Minnesota Statutes 1996, section 144.701, 
 44.18  subdivision 2, is amended to read: 
 44.19     Subd. 2.  [DATA FOR POLICY MAKING.] The commissioner of 
 44.20  health shall compile relevant financial and accounting, 
 44.21  utilization, and services data concerning hospitals and 
 44.22  outpatient surgical centers in order to have statistical 
 44.23  information available for legislative policy making. 
 44.24     Sec. 29.  Minnesota Statutes 1996, section 144.701, 
 44.25  subdivision 4, is amended to read: 
 44.26     Subd. 4.  [FILING FEES.] Each report which is required to 
 44.27  be submitted to the commissioner of health under sections 
 44.28  144.695 to 144.703 and which is not submitted to a voluntary, 
 44.29  nonprofit reporting organization in accordance with section 
 44.30  144.702 shall be accompanied by a filing fee in an amount 
 44.31  prescribed by rule of the commissioner of health.  Fees received 
 44.32  pursuant to this subdivision shall be deposited in the general 
 44.33  fund of the state treasury.  Upon the withdrawal of approval of 
 44.34  a reporting organization, or the decision of the commissioner to 
 44.35  not renew a reporting organization, fees collected under section 
 44.36  144.702 shall be submitted to the commissioner and deposited in 
 45.1   the general fund.  Fees received under this subdivision shall be 
 45.2   deposited in a revolving fund and are appropriated to the 
 45.3   commissioner of health for the purposes of sections 144.695 to 
 45.4   144.703.  The commissioner shall report the termination or 
 45.5   nonrenewal of the voluntary reporting organization to the chair 
 45.6   of the health and human services subdivision of the 
 45.7   appropriations committee of the house of representatives, to the 
 45.8   chair of the health and human services division of the finance 
 45.9   committee of the senate, and the commissioner of finance. 
 45.10     Sec. 30.  Minnesota Statutes 1996, section 144.702, 
 45.11  subdivision 1, is amended to read: 
 45.12     Subdivision 1.  [REPORTING THROUGH A REPORTING 
 45.13  ORGANIZATION.] A hospital or outpatient surgical center may 
 45.14  agree to submit its financial, utilization, and services reports 
 45.15  to a voluntary, nonprofit reporting organization whose reporting 
 45.16  procedures have been approved by the commissioner of health in 
 45.17  accordance with this section.  Each report submitted to the 
 45.18  voluntary, nonprofit reporting organization under this section 
 45.19  shall be accompanied by a filing fee. 
 45.20     Sec. 31.  Minnesota Statutes 1996, section 144.702, 
 45.21  subdivision 2, is amended to read: 
 45.22     Subd. 2.  [APPROVAL OF ORGANIZATION'S REPORTING 
 45.23  PROCEDURES.] The commissioner of health may approve voluntary 
 45.24  reporting procedures consistent with written operating 
 45.25  requirements for the voluntary, nonprofit reporting organization 
 45.26  which shall be established annually by the commissioner.  These 
 45.27  written operating requirements shall specify reports, analyses, 
 45.28  and other deliverables to be produced by the voluntary, 
 45.29  nonprofit reporting organization, and the dates on which those 
 45.30  deliverables must be submitted to the commissioner.  These 
 45.31  written operating requirements shall specify deliverable dates 
 45.32  sufficient to enable the commissioner of health to process and 
 45.33  report health care cost information system data to the 
 45.34  commissioner of human services by August 15 of each year.  The 
 45.35  commissioner of health shall, by rule, prescribe standards for 
 45.36  submission of data by hospitals and outpatient surgical centers 
 46.1   to the voluntary, nonprofit reporting organization or to the 
 46.2   commissioner.  These standards shall provide for: 
 46.3      (a) the filing of appropriate financial, utilization, and 
 46.4   services information with the reporting organization; 
 46.5      (b) adequate analysis and verification of that financial, 
 46.6   utilization, and services information; and 
 46.7      (c) timely publication of the costs, revenues, and rates of 
 46.8   individual hospitals and outpatient surgical centers prior to 
 46.9   the effective date of any proposed rate increase.  The 
 46.10  commissioner of health shall annually review the procedures 
 46.11  approved pursuant to this subdivision. 
 46.12     Sec. 32.  Minnesota Statutes 1996, section 144.702, 
 46.13  subdivision 8, is amended to read: 
 46.14     Subd. 8.  [TERMINATION OR NONRENEWAL OF REPORTING 
 46.15  ORGANIZATION.] The commissioner may withdraw approval of any 
 46.16  voluntary, nonprofit reporting organization for failure on the 
 46.17  part of the voluntary, nonprofit reporting organization to 
 46.18  comply with the written operating requirements under subdivision 
 46.19  2.  Upon the effective date of the withdrawal, all funds 
 46.20  collected by the voluntary, nonprofit reporting organization 
 46.21  under section 144.701, subdivision 4 1, but not expended shall 
 46.22  be deposited in the general fund a revolving fund and are 
 46.23  appropriated to the commissioner of health for the purposes of 
 46.24  sections 144.695 to 144.703. 
 46.25     The commissioner may choose not to renew approval of a 
 46.26  voluntary, nonprofit reporting organization if the organization 
 46.27  has failed to perform its obligations satisfactorily under the 
 46.28  written operating requirements under subdivision 2. 
 46.29     Sec. 33.  [144.7022] [ADMINISTRATIVE PENALTY ORDERS FOR 
 46.30  REPORTING ORGANIZATIONS.] 
 46.31     Subdivision 1.  [AUTHORIZATION.] The commissioner may issue 
 46.32  an order to the voluntary, nonprofit reporting organization 
 46.33  requiring violations to be corrected and administratively assess 
 46.34  monetary penalties for violations of sections 144.695 to 144.703 
 46.35  or rules, written operating requirements, orders, stipulation 
 46.36  agreements, settlements, or compliance agreements adopted, 
 47.1   enforced, or issued by the commissioner. 
 47.2      Subd. 2.  [CONTENTS OF ORDER.] An order assessing an 
 47.3   administrative penalty under this section must include: 
 47.4      (1) a concise statement of the facts alleged to constitute 
 47.5   a violation; 
 47.6      (2) a reference to the section of law, rule, written 
 47.7   operating requirement, order, stipulation agreement, settlement, 
 47.8   or compliance agreement that has been violated; 
 47.9      (3) a statement of the amount of the administrative penalty 
 47.10  to be imposed and the factors upon which the penalty is based; 
 47.11     (4) a statement of the corrective actions necessary to 
 47.12  correct the violation; and 
 47.13     (5) a statement of the right to request a hearing according 
 47.14  to sections 14.57 to 14.62. 
 47.15     Subd. 3.  [CONCURRENT CORRECTIVE ORDER.] The commissioner 
 47.16  may issue an order assessing an administrative penalty and 
 47.17  requiring the violations cited in the order be corrected within 
 47.18  30 calendar days from the date the order is received.  Before 
 47.19  the 31st day after the order was received, the voluntary, 
 47.20  nonprofit reporting organization that is subject to the order 
 47.21  shall provide the commissioner with information demonstrating 
 47.22  that the violation has been corrected or that a corrective plan 
 47.23  acceptable to the commissioner has been developed.  The 
 47.24  commissioner shall determine whether the violation has been 
 47.25  corrected and notify the voluntary, nonprofit reporting 
 47.26  organization of the commissioner's determination. 
 47.27     Subd. 4.  [PENALTY.] If the commissioner determines that 
 47.28  the violation has been corrected or an acceptable corrective 
 47.29  plan has been developed, the penalty may be forgiven, except 
 47.30  where there are repeated or serious violations, the commissioner 
 47.31  may issue an order with a penalty that will not be forgiven 
 47.32  after corrective action is taken.  Unless there is a request for 
 47.33  review of the order under subdivision 6 before the penalty is 
 47.34  due, the penalty is due and payable: 
 47.35     (1) on the 31st calendar day after the order was received, 
 47.36  if the voluntary, nonprofit reporting organization fails to 
 48.1   provide information to the commissioner showing that the 
 48.2   violation has been corrected or that appropriate steps have been 
 48.3   taken toward correcting the violation; 
 48.4      (2) on the 20th day after the voluntary, nonprofit 
 48.5   reporting organization receives the commissioner's determination 
 48.6   that the information provided is not sufficient to show that 
 48.7   either the violation has been corrected or that appropriate 
 48.8   steps have been taken toward correcting the violation; or 
 48.9      (3) on the 31st day after the order was received where the 
 48.10  penalty is for repeated or serious violations and according to 
 48.11  the order issued, the penalty will not be forgiven after 
 48.12  corrective action is taken. 
 48.13     All penalties due under this section are payable to the 
 48.14  treasurer, state of Minnesota, and shall be deposited in the 
 48.15  general fund. 
 48.16     Subd. 5.  [AMOUNT OF PENALTY; CONSIDERATIONS.] (a) The 
 48.17  maximum amount of an administrative penalty order is $5,000 for 
 48.18  each specific violation identified in an inspection, 
 48.19  investigation, or compliance review, up to an annual maximum 
 48.20  total for all violations of ten percent of the fees collected by 
 48.21  the voluntary, nonprofit reporting organization under section 
 48.22  144.702, subdivision 1.  The annual maximum is based on a 
 48.23  reporting year. 
 48.24     (b) In determining the amount of the administrative 
 48.25  penalty, the commissioner shall consider the following: 
 48.26     (1) the willfulness of the violation; 
 48.27     (2) the gravity of the violation; 
 48.28     (3) the history of past violations; 
 48.29     (4) the number of violations; 
 48.30     (5) the economic benefit gained by the person allowing or 
 48.31  committing the violation; and 
 48.32     (6) other factors as justice may require, if the 
 48.33  commissioner specifically identifies the additional factors in 
 48.34  the commissioner's order. 
 48.35     (c) In determining the amount of a penalty for a violation 
 48.36  subsequent to an initial violation under paragraph (a), the 
 49.1   commissioner shall also consider: 
 49.2      (1) the similarity of the most recent previous violation 
 49.3   and the violation to be penalized; 
 49.4      (2) the time elapsed since the last violation; and 
 49.5      (3) the response of the voluntary, nonprofit reporting 
 49.6   organization to the most recent previous violation. 
 49.7      Subd. 6.  [REQUEST FOR HEARING; HEARING; AND FINAL 
 49.8   ORDER.] A request for hearing must be in writing, delivered to 
 49.9   the commissioner by certified mail within 20 calendar days after 
 49.10  the receipt of the order, and specifically state the reasons for 
 49.11  seeking review of the order.  The commissioner must initiate a 
 49.12  hearing within 30 calendar days from the date of receipt of the 
 49.13  written request for hearing.  The hearing shall be conducted 
 49.14  pursuant to the contested case procedures in sections 14.57 to 
 49.15  14.62.  No earlier than ten calendar days after and within 30 
 49.16  calendar days of receipt of the presiding administrative law 
 49.17  judge's report, the commissioner shall, based on all relevant 
 49.18  facts, issue a final order modifying, vacating, or making the 
 49.19  original order permanent.  If, within 20 calendar days of 
 49.20  receipt of the original order, the voluntary, nonprofit 
 49.21  reporting organization fails to request a hearing in writing, 
 49.22  the order becomes the final order of the commissioner. 
 49.23     Subd. 7.  [REVIEW OF FINAL ORDER AND PAYMENT OF 
 49.24  PENALTY.] Once the commissioner issues a final order, any 
 49.25  penalty due under that order shall be paid within 30 calendar 
 49.26  days after the date of the final order, unless review of the 
 49.27  final order is requested.  The final order of the commissioner 
 49.28  may be appealed in the manner prescribed in sections 14.63 to 
 49.29  14.69.  If the final order is reviewed and upheld, the penalty 
 49.30  shall be paid 30 calendar days after the date of the decision of 
 49.31  the reviewing court.  Failure to request an administrative 
 49.32  hearing pursuant to subdivision 6 shall constitute a waiver of 
 49.33  the right to further agency or judicial review of the final 
 49.34  order. 
 49.35     Subd. 8.  [REINSPECTIONS AND EFFECT OF NONCOMPLIANCE.] If, 
 49.36  upon reinspection, or in the determination of the commissioner, 
 50.1   it is found that any deficiency specified in the order has not 
 50.2   been corrected or an acceptable corrective plan has not been 
 50.3   developed, the voluntary, nonprofit reporting organization is in 
 50.4   noncompliance.  The commissioner shall issue a notice of 
 50.5   noncompliance and may impose any additional remedy available 
 50.6   under this chapter. 
 50.7      Subd. 9.  [ENFORCEMENT.] The attorney general may proceed 
 50.8   on behalf of the commissioner to enforce penalties that are due 
 50.9   and payable under this section in any manner provided by law for 
 50.10  the collection of debts. 
 50.11     Subd. 10.  [TERMINATION OR NONRENEWAL OF REPORTING 
 50.12  ORGANIZATION.] The commissioner may withdraw or not renew 
 50.13  approval of any voluntary, nonprofit reporting organization for 
 50.14  failure on the part of the voluntary, nonprofit reporting 
 50.15  organization to pay penalties owed under this section. 
 50.16     Subd. 11.  [CUMULATIVE REMEDY.] The authority of the 
 50.17  commissioner to issue an administrative penalty order is in 
 50.18  addition to other lawfully available remedies. 
 50.19     Subd. 12.  [MEDIATION.] In addition to review under 
 50.20  subdivision 6, the commissioner is authorized to enter into 
 50.21  mediation concerning an order issued under this section if the 
 50.22  commissioner and the voluntary, nonprofit reporting organization 
 50.23  agree to mediation. 
 50.24     Sec. 34.  Minnesota Statutes 1996, section 144.9501, 
 50.25  subdivision 1, is amended to read: 
 50.26     Subdivision 1.  [CITATION.] Sections 144.9501 to 144.9509 
 50.27  may be cited as the "childhood Lead Poisoning Prevention Act." 
 50.28     Sec. 35.  Minnesota Statutes 1996, section 144.9501, is 
 50.29  amended by adding a subdivision to read: 
 50.30     Subd. 4a.  [ASSESSING AGENCY.] "Assessing agency" means the 
 50.31  commissioner or a board of health with authority and 
 50.32  responsibility to conduct lead risk assessments in response to 
 50.33  reports of children or pregnant women with elevated blood lead 
 50.34  levels. 
 50.35     Sec. 36.  Minnesota Statutes 1996, section 144.9501, is 
 50.36  amended by adding a subdivision to read: 
 51.1      Subd. 6b.  [CLEARANCE INSPECTION.] "Clearance inspection" 
 51.2   means a visual identification of deteriorated paint and bare 
 51.3   soil and a resampling and analysis of interior dust lead 
 51.4   concentrations in a residence to ensure that the lead standards 
 51.5   established in rules adopted under section 144.9508 are not 
 51.6   exceeded. 
 51.7      Sec. 37.  Minnesota Statutes 1996, section 144.9501, 
 51.8   subdivision 17, is amended to read: 
 51.9      Subd. 17.  [LEAD HAZARD REDUCTION.] "Lead hazard reduction" 
 51.10  means action undertaken in response to a lead order to make a 
 51.11  residence, child care facility, school, or playground lead-safe 
 51.12  by complying with the lead standards and methods adopted under 
 51.13  section 144.9508, by: 
 51.14     (1) a property owner or lead contractor complying persons 
 51.15  hired by the property owner to comply with a lead order issued 
 51.16  under section 144.9504; or 
 51.17     (2) a swab team service provided in response to a lead 
 51.18  order issued under section 144.9504; or 
 51.19     (3) a renter residing at a rental property or one or more 
 51.20  volunteers to comply with a lead order issued under section 
 51.21  144.9504.  
 51.22     Sec. 38.  Minnesota Statutes 1996, section 144.9501, is 
 51.23  amended by adding a subdivision to read: 
 51.24     Subd. 17a.  [LEAD HAZARD SCREEN.] "Lead hazard screen" 
 51.25  means visual identification of the existence and location of any 
 51.26  deteriorated paint, collection and analysis of dust samples, and 
 51.27  visual identification of the existence and location of bare soil.
 51.28     Sec. 39.  Minnesota Statutes 1996, section 144.9501, 
 51.29  subdivision 18, is amended to read: 
 51.30     Subd. 18.  [LEAD INSPECTION.] "Lead inspection" means a 
 51.31  qualitative or quantitative analytical inspection of a residence 
 51.32  for deteriorated paint or bare soil and the collection of 
 51.33  samples of deteriorated paint, bare soil, dust, or drinking 
 51.34  water for analysis to determine if the lead concentrations in 
 51.35  the samples exceed standards adopted under section 144.9508. 
 51.36  Lead inspection includes the clearance inspection after the 
 52.1   completion of a lead order measurement of the lead content of 
 52.2   paint and a visual identification of the existence and location 
 52.3   of bare soil.  
 52.4      Sec. 40.  Minnesota Statutes 1996, section 144.9501, 
 52.5   subdivision 20, is amended to read: 
 52.6      Subd. 20.  [LEAD ORDER.] "Lead order" means a legal 
 52.7   instrument to compel a property owner to engage in lead hazard 
 52.8   reduction according to the specifications given by the 
 52.9   inspecting assessing agency.  
 52.10     Sec. 41.  Minnesota Statutes 1996, section 144.9501, is 
 52.11  amended by adding a subdivision to read: 
 52.12     Subd. 20a.  [LEAD PROJECT DESIGNER.] "Lead project designer"
 52.13  means an individual who is responsible for planning the 
 52.14  site-specific performance of lead abatement or lead hazard 
 52.15  reduction and who has been licensed by the commissioner under 
 52.16  section 144.9505. 
 52.17     Sec. 42.  Minnesota Statutes 1996, section 144.9501, is 
 52.18  amended by adding a subdivision to read: 
 52.19     Subd. 20b.  [LEAD RISK ASSESSMENT.] "Lead risk assessment" 
 52.20  means a quantitative measurement of the lead content of paint, 
 52.21  interior dust, and bare soil to determine compliance with the 
 52.22  standards established under section 144.9508. 
 52.23     Sec. 43.  Minnesota Statutes 1996, section 144.9501, is 
 52.24  amended by adding a subdivision to read: 
 52.25     Subd. 20c.  [LEAD RISK ASSESSOR.] "Lead risk assessor" 
 52.26  means an individual who performs lead risk assessments or lead 
 52.27  inspections and who has been licensed by the commissioner under 
 52.28  section 144.9506. 
 52.29     Sec. 44.  Minnesota Statutes 1996, section 144.9501, is 
 52.30  amended by adding a subdivision to read: 
 52.31     Subd. 22a.  [LEAD SUPERVISOR.] "Lead supervisor" means an 
 52.32  individual who is responsible for the on-site performance of 
 52.33  lead abatement or lead hazard reduction and who has been 
 52.34  licensed by the commissioner under section 144.9505. 
 52.35     Sec. 45.  Minnesota Statutes 1996, section 144.9501, 
 52.36  subdivision 23, is amended to read: 
 53.1      Subd. 23.  [LEAD WORKER.] "Lead worker" means any person 
 53.2   who is certified an individual who performs lead abatement or 
 53.3   lead hazard reduction and who has been licensed by the 
 53.4   commissioner under section 144.9505.  
 53.5      Sec. 46.  Minnesota Statutes 1996, section 144.9501, is 
 53.6   amended by adding a subdivision to read: 
 53.7      Subd. 25a.  [PLAY AREA.] "Play area" means any established 
 53.8   area where children play, or on residential property, any 
 53.9   established area where children play or bare soil is accessible 
 53.10  to children. 
 53.11     Sec. 47.  Minnesota Statutes 1996, section 144.9501, is 
 53.12  amended by adding a subdivision to read: 
 53.13     Subd. 28a.  [STANDARD.] "Standard" means a quantitative 
 53.14  assessment of lead in any environmental media or consumer 
 53.15  product, or a work practice or method that reduces the 
 53.16  likelihood of lead exposure. 
 53.17     Sec. 48.  Minnesota Statutes 1996, section 144.9501, 
 53.18  subdivision 30, is amended to read: 
 53.19     Subd. 30.  [SWAB TEAM WORKER.] "Swab team worker" means a 
 53.20  person who is certified an individual who performs swab team 
 53.21  services and who has been licensed by the commissioner as a lead 
 53.22  worker under section 144.9505.  
 53.23     Sec. 49.  Minnesota Statutes 1996, section 144.9501, 
 53.24  subdivision 32, is amended to read: 
 53.25     Subd. 32.  [VOLUNTARY LEAD HAZARD REDUCTION.] "Voluntary 
 53.26  lead hazard reduction" means action undertaken by a property 
 53.27  owner with the intention to engage in lead hazard reduction or 
 53.28  abatement lead hazard reduction activities defined in 
 53.29  subdivision 17, but not undertaken in response to the issuance 
 53.30  of a lead order.  
 53.31     Sec. 50.  Minnesota Statutes 1996, section 144.9502, 
 53.32  subdivision 3, is amended to read: 
 53.33     Subd. 3.  [REPORTS OF BLOOD LEAD ANALYSIS REQUIRED.] (a) 
 53.34  Every hospital, medical clinic, medical laboratory, or other 
 53.35  facility, or individual performing blood lead analysis shall 
 53.36  report the results after the analysis of each specimen analyzed, 
 54.1   for both capillary and venous specimens, and epidemiologic 
 54.2   information required in this section to the commissioner of 
 54.3   health, within the time frames set forth in clauses (1) and (2): 
 54.4      (1) within two working days by telephone, fax, or 
 54.5   electronic transmission, with written or electronic confirmation 
 54.6   within one month, for a venous blood lead level equal to or 
 54.7   greater than 15 micrograms of lead per deciliter of whole blood; 
 54.8   or 
 54.9      (2) within one month in writing or by electronic 
 54.10  transmission, for a any capillary result or for a venous blood 
 54.11  lead level less than 15 micrograms of lead per deciliter of 
 54.12  whole blood.  
 54.13     (b) If a blood lead analysis is performed outside of 
 54.14  Minnesota and the facility performing the analysis does not 
 54.15  report the blood lead analysis results and epidemiological 
 54.16  information required in this section to the commissioner, the 
 54.17  provider who collected the blood specimen must satisfy the 
 54.18  reporting requirements of this section.  For purposes of this 
 54.19  section, "provider" has the meaning given in section 62D.02, 
 54.20  subdivision 9. 
 54.21     (c) The commissioner shall coordinate with hospitals, 
 54.22  medical clinics, medical laboratories, and other facilities 
 54.23  performing blood lead analysis to develop a universal reporting 
 54.24  form and mechanism. 
 54.25     The reporting requirements of this subdivision shall expire 
 54.26  on December 31, 1997.  Beginning January 1, 1998, every 
 54.27  hospital, medical clinic, medical laboratory, or other facility 
 54.28  performing blood lead analysis shall report the results within 
 54.29  two working days by telephone, fax, or electronic transmission, 
 54.30  with written or electronic confirmation within one month, for 
 54.31  capillary or venous blood lead level equal to the level for 
 54.32  which reporting is recommended by the Center for Disease Control.
 54.33     Sec. 51.  Minnesota Statutes 1996, section 144.9502, 
 54.34  subdivision 4, is amended to read: 
 54.35     Subd. 4.  [BLOOD LEAD ANALYSES AND EPIDEMIOLOGIC 
 54.36  INFORMATION.] The blood lead analysis reports required in this 
 55.1   section must specify:  
 55.2      (1) whether the specimen was collected as a capillary or 
 55.3   venous sample; 
 55.4      (2) the date the sample was collected; 
 55.5      (3) the results of the blood lead analysis; 
 55.6      (4) the date the sample was analyzed; 
 55.7      (5) the method of analysis used; 
 55.8      (6) the full name, address, and phone number of the 
 55.9   laboratory performing the analysis; 
 55.10     (7) the full name, address, and phone number of the 
 55.11  physician or facility requesting the analysis; 
 55.12     (8) the full name, address, and phone number of the person 
 55.13  with the elevated blood lead level, and the person's birthdate, 
 55.14  gender, and race.  
 55.15     Sec. 52.  Minnesota Statutes 1996, section 144.9502, 
 55.16  subdivision 9, is amended to read: 
 55.17     Subd. 9.  [CLASSIFICATION OF DATA.] Notwithstanding any law 
 55.18  to the contrary, including section 13.05, subdivision 9, data 
 55.19  collected by the commissioner of health about persons with 
 55.20  elevated blood lead levels, including analytic results from 
 55.21  samples of paint, soil, dust, and drinking water taken from the 
 55.22  individual's home and immediate property, shall be private and 
 55.23  may only be used by the commissioner of health, the commissioner 
 55.24  of labor and industry, authorized agents of Indian tribes, and 
 55.25  authorized employees of local boards of health for the purposes 
 55.26  set forth in this section.  
 55.27     Sec. 53.  Minnesota Statutes 1996, section 144.9503, 
 55.28  subdivision 4, is amended to read: 
 55.29     Subd. 4.  [SWAB TEAM SERVICES.] Primary prevention must 
 55.30  include the use of swab team services in census tracts 
 55.31  identified at high risk for toxic lead exposure as identified by 
 55.32  the commissioner under this section.  The swab team services may 
 55.33  be provided based on visual inspections lead hazard screens 
 55.34  whenever possible and must at least include lead 
 55.35  hazard management reduction for deteriorated interior lead-based 
 55.36  paint, bare soil, and dust.  
 56.1      Sec. 54.  Minnesota Statutes 1996, section 144.9503, 
 56.2   subdivision 6, is amended to read: 
 56.3      Subd. 6.  [VOLUNTARY LEAD ABATEMENT OR LEAD HAZARD 
 56.4   REDUCTION.] The commissioner shall monitor the lead abatement or 
 56.5   lead hazard reduction methods adopted under section 144.9508 in 
 56.6   cases of voluntary lead abatement or lead hazard reduction.  All 
 56.7   contractors persons hired to do voluntary lead abatement or lead 
 56.8   hazard reduction must be licensed lead contractors by the 
 56.9   commissioner under section 144.9505 or 144.9506.  Renters and 
 56.10  volunteers performing lead abatement or lead hazard reduction 
 56.11  must be trained and licensed as lead supervisors or lead 
 56.12  workers.  If a property owner does not use a lead contractor 
 56.13  hire a person for voluntary lead abatement or lead hazard 
 56.14  reduction, the property owner shall provide the commissioner 
 56.15  with a work plan for lead abatement or lead hazard reduction at 
 56.16  least ten working days before beginning the lead abatement or 
 56.17  lead hazard reduction.  The work plan must include the details 
 56.18  required in section 144.9505, and notice as to when 
 56.19  lead abatement or lead hazard reduction activities will begin.  
 56.20  Within the limits of appropriations, the commissioner shall 
 56.21  review work plans and shall approve or disapprove them as to 
 56.22  compliance with the requirements in section 144.9505.  No 
 56.23  penalty shall be assessed against a property owner for 
 56.24  discontinuing voluntary lead hazard reduction before completion 
 56.25  of the work plan, provided that the property owner discontinues 
 56.26  the plan lead hazard reduction in a manner that leaves the 
 56.27  property in a condition no more hazardous than its condition 
 56.28  before the work plan implementation. 
 56.29     Sec. 55.  Minnesota Statutes 1996, section 144.9503, 
 56.30  subdivision 7, is amended to read: 
 56.31     Subd. 7.  [LEAD-SAFE INFORMATIONAL DIRECTIVES.] (a) By July 
 56.32  1, 1995, and amended and updated as necessary, the commissioner 
 56.33  shall develop in cooperation with the commissioner of 
 56.34  administration provisions and procedures to define 
 56.35  lead-safe informational directives for residential remodeling, 
 56.36  renovation, installation, and rehabilitation activities that are 
 57.1   not lead hazard reduction, but may disrupt lead-based paint 
 57.2   surfaces.  
 57.3      (b) The provisions and procedures shall define lead-safe 
 57.4   directives for nonlead hazard reduction activities including 
 57.5   preparation, cleanup, and disposal procedures.  The directives 
 57.6   shall be based on the different levels and types of work 
 57.7   involved and the potential for lead hazards.  The directives 
 57.8   shall address activities including painting; remodeling; 
 57.9   weatherization; installation of cable, wire, plumbing, and gas; 
 57.10  and replacement of doors and windows.  The commissioners of 
 57.11  health and administration shall consult with representatives of 
 57.12  builders, weatherization providers, nonprofit rehabilitation 
 57.13  organizations, each of the affected trades, and housing and 
 57.14  redevelopment authorities in developing the directives and 
 57.15  procedures.  This group shall also make recommendations for 
 57.16  consumer and contractor education and training.  The 
 57.17  commissioner of health shall report to the legislature by 
 57.18  February 15, 1996, regarding development of the provisions 
 57.19  required under this subdivision paragraph.  
 57.20     (c) By January 1, 1999, the commissioner, in cooperation 
 57.21  with interested and informed persons and using the meeting 
 57.22  structure and format developed in paragraph (b), shall develop 
 57.23  lead-safe informational directives on the following topics: 
 57.24     (1) maintaining floors, walls, and ceilings; 
 57.25     (2) maintaining and repairing porches; 
 57.26     (3) conducting a risk evaluation for lead; and 
 57.27     (4) prohibited practices when working with lead. 
 57.28  The commissioner shall report to the legislature by January 1, 
 57.29  1999, regarding development of the provisions required under 
 57.30  this paragraph. 
 57.31     Sec. 56.  Minnesota Statutes 1996, section 144.9504, 
 57.32  subdivision 1, is amended to read: 
 57.33     Subdivision 1.  [JURISDICTION.] (a) A board of health 
 57.34  serving cities of the first class must conduct lead inspections 
 57.35  risk assessments for purposes of secondary prevention, according 
 57.36  to the provisions of this section.  A board of health not 
 58.1   serving cities of the first class must conduct lead inspections 
 58.2   risk assessments for the purposes of secondary prevention, 
 58.3   unless they certify certified in writing to the commissioner by 
 58.4   January 1, 1996, that they desire desired to relinquish these 
 58.5   duties back to the commissioner.  At the discretion of the 
 58.6   commissioner, a board of health may relinquish the authority and 
 58.7   duty to perform lead risk assessments for secondary prevention 
 58.8   by so certifying in writing to the commissioner by December 31, 
 58.9   1999.  At the discretion of the commissioner, a board of health 
 58.10  may, upon written request to the commissioner, resume these 
 58.11  duties. 
 58.12     (b) Inspections Lead risk assessments must be conducted by 
 58.13  a board of health serving a city of the first class.  The 
 58.14  commissioner must conduct lead inspections risk assessments in 
 58.15  any area not including cities of the first class where a board 
 58.16  of health has relinquished to the commissioner the 
 58.17  responsibility for lead inspections risk assessments.  The 
 58.18  commissioner shall coordinate with the board of health to ensure 
 58.19  that the requirements of this section are met.  
 58.20     (c) The commissioner may assist boards of health by 
 58.21  providing technical expertise, equipment, and personnel to 
 58.22  boards of health.  The commissioner may provide laboratory or 
 58.23  field lead-testing equipment to a board of health or may 
 58.24  reimburse a board of health for direct costs associated with 
 58.25  lead inspections risk assessments. 
 58.26     (d) The commissioner shall enforce the rules under section 
 58.27  144.9508 in cases of voluntary lead hazard reduction. 
 58.28     Sec. 57.  Minnesota Statutes 1997 Supplement, section 
 58.29  144.9504, subdivision 2, is amended to read: 
 58.30     Subd. 2.  [LEAD INSPECTION RISK ASSESSMENT.] (a) 
 58.31  An inspecting assessing agency shall conduct a lead inspection 
 58.32  risk assessment of a residence according to the venous blood 
 58.33  lead level and time frame set forth in clauses (1) to (5) for 
 58.34  purposes of secondary prevention:  
 58.35     (1) within 48 hours of a child or pregnant female in the 
 58.36  residence being identified to the agency as having a venous 
 59.1   blood lead level equal to or greater than 70 micrograms of lead 
 59.2   per deciliter of whole blood; 
 59.3      (2) within five working days of a child or pregnant female 
 59.4   in the residence being identified to the agency as having a 
 59.5   venous blood lead level equal to or greater than 45 micrograms 
 59.6   of lead per deciliter of whole blood; 
 59.7      (3) within ten working days of a child in the residence 
 59.8   being identified to the agency as having a venous blood lead 
 59.9   level equal to or greater than 20 micrograms of lead per 
 59.10  deciliter of whole blood; 
 59.11     (4) within ten working days of a child in the residence 
 59.12  being identified to the agency as having a venous blood lead 
 59.13  level that persists in the range of 15 to 19 micrograms of lead 
 59.14  per deciliter of whole blood for 90 days after initial 
 59.15  identification; or 
 59.16     (5) within ten working days of a pregnant female in the 
 59.17  residence being identified to the agency as having a venous 
 59.18  blood lead level equal to or greater than ten micrograms of lead 
 59.19  per deciliter of whole blood.  
 59.20     (b) Within the limits of available state and federal 
 59.21  appropriations, an inspecting assessing agency may also conduct 
 59.22  a lead inspection risk assessment for children with any elevated 
 59.23  blood lead level.  
 59.24     (c) In a building with two or more dwelling units, an 
 59.25  inspecting assessing agency shall inspect the individual unit in 
 59.26  which the conditions of this section are met and shall also 
 59.27  inspect all common areas.  If a child visits one or more other 
 59.28  sites such as another residence, or a residential or commercial 
 59.29  child care facility, playground, or school, the inspecting 
 59.30  assessing agency shall also inspect the other sites.  
 59.31  The inspecting assessing agency shall have one additional day 
 59.32  added to the time frame set forth in this subdivision to 
 59.33  complete the lead inspection risk assessment for each additional 
 59.34  site.  
 59.35     (d) Within the limits of appropriations, the inspecting 
 59.36  assessing agency shall identify the known addresses for the 
 60.1   previous 12 months of the child or pregnant female with venous 
 60.2   blood lead levels of at least 20 micrograms per deciliter for 
 60.3   the child or at least ten micrograms per deciliter for the 
 60.4   pregnant female; notify the property owners, landlords, and 
 60.5   tenants at those addresses that an elevated blood lead level was 
 60.6   found in a person who resided at the property; and give them a 
 60.7   copy of the lead inspection risk assessment guide.  The 
 60.8   inspecting assessing agency shall provide the notice required by 
 60.9   this subdivision without identifying the child or pregnant 
 60.10  female with the elevated blood lead level.  The inspecting 
 60.11  assessing agency is not required to obtain the consent of the 
 60.12  child's parent or guardian or the consent of the pregnant female 
 60.13  for purposes of this subdivision.  This information shall be 
 60.14  classified as private data on individuals as defined under 
 60.15  section 13.02, subdivision 12.  
 60.16     (e) The inspecting assessing agency shall conduct the lead 
 60.17  inspection risk assessment according to rules adopted by the 
 60.18  commissioner under section 144.9508.  An inspecting assessing 
 60.19  agency shall have lead inspections risk assessments performed by 
 60.20  lead inspectors risk assessors licensed by the commissioner 
 60.21  according to rules adopted under section 144.9508.  If a 
 60.22  property owner refuses to allow an inspection a lead risk 
 60.23  assessment, the inspecting assessing agency shall begin legal 
 60.24  proceedings to gain entry to the property and the time frame for 
 60.25  conducting a lead inspection risk assessment set forth in this 
 60.26  subdivision no longer applies.  An inspector A lead risk 
 60.27  assessor or inspecting assessing agency may observe the 
 60.28  performance of lead hazard reduction in progress and shall 
 60.29  enforce the provisions of this section under section 144.9509.  
 60.30  Deteriorated painted surfaces, bare soil, and dust, and drinking 
 60.31  water must be tested with appropriate analytical equipment to 
 60.32  determine the lead content, except that deteriorated painted 
 60.33  surfaces or bare soil need not be tested if the property owner 
 60.34  agrees to engage in lead hazard reduction on those 
 60.35  surfaces.  The lead content of drinking water must be measured 
 60.36  if a probable source of lead exposure is not identified by 
 61.1   measurement of lead in paint, bare soil, or dust.  Within a 
 61.2   standard metropolitan statistical area, an assessing agency may 
 61.3   order lead hazard reduction of bare soil without measuring the 
 61.4   lead content of the bare soil if the property is in a census 
 61.5   tract in which soil sampling has been performed according to 
 61.6   rules established by the commissioner and at least 25 percent of 
 61.7   the soil samples contain lead concentrations above the standard 
 61.8   in section 144.9508. 
 61.9      (f) A lead inspector risk assessor shall notify the 
 61.10  commissioner and the board of health of all violations of lead 
 61.11  standards under section 144.9508, that are identified in a 
 61.12  lead inspection risk assessment conducted under this section.  
 61.13     (g) Each inspecting assessing agency shall establish an 
 61.14  administrative appeal procedure which allows a property owner to 
 61.15  contest the nature and conditions of any lead order issued by 
 61.16  the inspecting assessing agency.  Inspecting Assessing agencies 
 61.17  must consider appeals that propose lower cost methods that make 
 61.18  the residence lead safe. 
 61.19     (h) Sections 144.9501 to 144.9509 neither authorize nor 
 61.20  prohibit an inspecting assessing agency from charging a property 
 61.21  owner for the cost of a lead inspection risk assessment. 
 61.22     Sec. 58.  Minnesota Statutes 1996, section 144.9504, 
 61.23  subdivision 3, is amended to read: 
 61.24     Subd. 3.  [LEAD EDUCATION STRATEGY.] At the time of a 
 61.25  lead inspection risk assessment or following a lead order, the 
 61.26  inspecting assessing agency shall ensure that a family will 
 61.27  receive a visit at their residence by a swab team worker or 
 61.28  public health professional, such as a nurse, sanitarian, public 
 61.29  health educator, or other public health professional.  The swab 
 61.30  team worker or public health professional shall inform the 
 61.31  property owner, landlord, and the tenant of the health-related 
 61.32  aspects of lead exposure; nutrition; safety measures to minimize 
 61.33  exposure; methods to be followed before, during, and after the 
 61.34  lead hazard reduction process; and community, legal, and housing 
 61.35  resources.  If a family moves to a temporary residence during 
 61.36  the lead hazard reduction process, lead education services 
 62.1   should be provided at the temporary residence whenever feasible. 
 62.2      Sec. 59.  Minnesota Statutes 1996, section 144.9504, 
 62.3   subdivision 4, is amended to read: 
 62.4      Subd. 4.  [LEAD INSPECTION RISK ASSESSMENT GUIDES.] (a) The 
 62.5   commissioner of health shall develop or purchase lead inspection 
 62.6   risk assessment guides that enable parents and other caregivers 
 62.7   to assess the possible lead sources present and that suggest 
 62.8   lead hazard reduction actions.  The guide must provide 
 62.9   information on lead hazard reduction and disposal methods, 
 62.10  sources of equipment, and telephone numbers for additional 
 62.11  information to enable the persons to either select a lead 
 62.12  contractor persons licensed by the commissioner under section 
 62.13  144.9505 or 144.9506 to perform lead hazard reduction or perform 
 62.14  the lead hazard reduction themselves.  The guides must explain:  
 62.15     (1) the requirements of this section and rules adopted 
 62.16  under section 144.9508; 
 62.17     (2) information on the administrative appeal procedures 
 62.18  required under this section; 
 62.19     (3) summary information on lead-safe directives; 
 62.20     (4) be understandable at an eighth grade reading level; and 
 62.21     (5) be translated for use by non-English-speaking persons.  
 62.22     (b) An inspecting assessing agency shall provide the lead 
 62.23  inspection risk assessment guides at no cost to:  
 62.24     (1) parents and other caregivers of children who are 
 62.25  identified as having blood lead levels of at least ten 
 62.26  micrograms of lead per deciliter of whole blood; 
 62.27     (2) all property owners who are issued housing code or lead 
 62.28  orders requiring lead hazard reduction of lead sources and all 
 62.29  occupants of those properties; and 
 62.30     (3) occupants of residences adjacent to the inspected 
 62.31  property.  
 62.32     (c) An inspecting assessing agency shall provide the lead 
 62.33  inspection risk assessment guides on request to owners or 
 62.34  occupants of residential property, builders, contractors, 
 62.35  inspectors, and the public within the jurisdiction of 
 62.36  the inspecting assessing agency.  
 63.1      Sec. 60.  Minnesota Statutes 1996, section 144.9504, 
 63.2   subdivision 5, is amended to read: 
 63.3      Subd. 5.  [LEAD ORDERS.] An inspecting assessing agency, 
 63.4   after conducting a lead inspection risk assessment, shall order 
 63.5   a property owner to perform lead hazard reduction on all lead 
 63.6   sources that exceed a standard adopted according to section 
 63.7   144.9508.  If lead inspections risk assessments and lead orders 
 63.8   are conducted at times when weather or soil conditions do not 
 63.9   permit the lead inspection risk assessment or lead hazard 
 63.10  reduction, external surfaces and soil lead shall be inspected, 
 63.11  and lead orders complied with, if necessary, at the first 
 63.12  opportunity that weather and soil conditions allow.  If the 
 63.13  paint standard under section 144.9508 is violated, but the paint 
 63.14  is intact, the inspecting assessing agency shall not order the 
 63.15  paint to be removed unless the intact paint is a known source of 
 63.16  actual lead exposure to a specific person.  Before the 
 63.17  inspecting assessing agency may order the intact paint to be 
 63.18  removed, a reasonable effort must be made to protect the child 
 63.19  and preserve the intact paint by the use of guards or other 
 63.20  protective devices and methods.  Whenever windows and doors or 
 63.21  other components covered with deteriorated lead-based paint have 
 63.22  sound substrate or are not rotting, those components should be 
 63.23  repaired, sent out for stripping or be planed down to remove 
 63.24  deteriorated lead-based paint or covered with protective guards 
 63.25  instead of being replaced, provided that such an activity is the 
 63.26  least cost method.  However, a property owner who has been 
 63.27  ordered to perform lead hazard reduction may choose any method 
 63.28  to address deteriorated lead-based paint on windows, doors, or 
 63.29  other components, provided that the method is approved in rules 
 63.30  adopted under section 144.9508 and that it is appropriate to the 
 63.31  specific property.  Lead orders must require that any source of 
 63.32  damage, such as leaking roofs, plumbing, and windows, be 
 63.33  repaired or replaced, as needed, to prevent damage to 
 63.34  lead-containing interior surfaces.  The inspecting assessing 
 63.35  agency is not required to pay for lead hazard reduction.  Lead 
 63.36  orders must be issued within 30 days of receiving the blood lead 
 64.1   level analysis.  The inspecting assessing agency shall enforce 
 64.2   the lead orders issued to a property owner under this section.  
 64.3   A copy of the lead order must be forwarded to the commissioner.  
 64.4      Sec. 61.  Minnesota Statutes 1996, section 144.9504, 
 64.5   subdivision 6, is amended to read: 
 64.6      Subd. 6.  [SWAB TEAM SERVICES.] After a lead inspection 
 64.7   risk assessment or after issuing lead orders, the inspecting 
 64.8   assessing agency, within the limits of appropriations and 
 64.9   availability, shall offer the property owner the services of a 
 64.10  swab team free of charge and, if accepted, shall send a swab 
 64.11  team within ten working days to the residence to perform swab 
 64.12  team services as defined in section 144.9501.  If the inspecting 
 64.13  assessing agency provides swab team services after a 
 64.14  lead inspection risk assessment, but before the issuance of a 
 64.15  lead order, swab team services do not need to be repeated after 
 64.16  the issuance of the lead order if the swab team services 
 64.17  fulfilled the lead order.  Swab team services are not considered 
 64.18  completed until the clearance inspection required under this 
 64.19  section shows that the property is lead safe. 
 64.20     Sec. 62.  Minnesota Statutes 1996, section 144.9504, 
 64.21  subdivision 7, is amended to read: 
 64.22     Subd. 7.  [RELOCATION OF RESIDENTS.] (a) Within the limits 
 64.23  of appropriations, the inspecting assessing agency shall ensure 
 64.24  that residents are relocated from rooms or dwellings during a 
 64.25  lead hazard reduction process that generates leaded dust, such 
 64.26  as removal or disruption of lead-based paint or plaster that 
 64.27  contains lead.  Residents shall not remain in rooms or dwellings 
 64.28  where the lead hazard reduction process is occurring.  An 
 64.29  inspecting assessing agency is not required to pay for 
 64.30  relocation unless state or federal funding is available for this 
 64.31  purpose.  The inspecting assessing agency shall make an effort 
 64.32  to assist the resident in locating resources that will provide 
 64.33  assistance with relocation costs.  Residents shall be allowed to 
 64.34  return to the residence or dwelling after completion of the lead 
 64.35  hazard reduction process.  An inspecting assessing agency shall 
 64.36  use grant funds under section 144.9507 if available, in 
 65.1   cooperation with local housing agencies, to pay for moving costs 
 65.2   and rent for a temporary residence for any low-income resident 
 65.3   temporarily relocated during lead hazard reduction.  For 
 65.4   purposes of this section, "low-income resident" means any 
 65.5   resident whose gross household income is at or below 185 percent 
 65.6   of federal poverty level.  
 65.7      (b) A resident of rental property who is notified by an 
 65.8   inspecting assessing agency to vacate the premises during lead 
 65.9   hazard reduction, notwithstanding any rental agreement or lease 
 65.10  provisions:  
 65.11     (1) shall not be required to pay rent due the landlord for 
 65.12  the period of time the tenant vacates the premises due to lead 
 65.13  hazard reduction; 
 65.14     (2) may elect to immediately terminate the tenancy 
 65.15  effective on the date the tenant vacates the premises due to 
 65.16  lead hazard reduction; and 
 65.17     (3) shall not, if the tenancy is terminated, be liable for 
 65.18  any further rent or other charges due under the terms of the 
 65.19  tenancy. 
 65.20     (c) A landlord of rental property whose tenants vacate the 
 65.21  premises during lead hazard reduction shall:  
 65.22     (1) allow a tenant to return to the dwelling unit after 
 65.23  lead hazard reduction and clearance inspection, required under 
 65.24  this section, is completed, unless the tenant has elected to 
 65.25  terminate the tenancy as provided for in paragraph (b); and 
 65.26     (2) return any security deposit due under section 504.20 
 65.27  within five days of the date the tenant vacates the unit, to any 
 65.28  tenant who terminates tenancy as provided for in paragraph (b).  
 65.29     Sec. 63.  Minnesota Statutes 1996, section 144.9504, 
 65.30  subdivision 8, is amended to read: 
 65.31     Subd. 8.  [PROPERTY OWNER RESPONSIBILITY.] Property owners 
 65.32  shall comply with lead orders issued under this section within 
 65.33  60 days or be subject to enforcement actions as provided under 
 65.34  section 144.9509.  For orders or portions of orders concerning 
 65.35  external lead hazards, property owners shall comply within 60 
 65.36  days, or as soon thereafter as weather permits.  If the property 
 66.1   owner does not use a lead contractor hire a person licensed by 
 66.2   the commissioner under section 144.9505 for compliance with the 
 66.3   lead orders, the property owner shall submit a work plan to 
 66.4   the inspecting assessing agency within 30 days after receiving 
 66.5   the orders.  The work plan must include the details required in 
 66.6   section 144.9505 as to how the property owner intends to comply 
 66.7   with the lead orders and notice as to when lead hazard reduction 
 66.8   activities will begin.  Within the limits of appropriations, the 
 66.9   commissioner shall review plans and shall approve or disapprove 
 66.10  them as to compliance with the requirements in section 144.9505, 
 66.11  subdivision 5.  Renters and volunteers performing lead abatement 
 66.12  or lead hazard reduction must be trained and licensed as lead 
 66.13  supervisors or lead workers under section 144.9505. 
 66.14     Sec. 64.  Minnesota Statutes 1996, section 144.9504, 
 66.15  subdivision 9, is amended to read: 
 66.16     Subd. 9.  [CLEARANCE INSPECTION.] After completion of swab 
 66.17  team services and compliance with the lead orders by the 
 66.18  property owner, including any repairs ordered by a local housing 
 66.19  or building inspector, the inspecting assessing agency shall 
 66.20  conduct a clearance inspection by visually inspecting the 
 66.21  residence for visual identification of deteriorated paint and 
 66.22  bare soil and retest the dust lead concentration in the 
 66.23  residence to assure that violations of the lead standards under 
 66.24  section 144.9508 no longer exist.  The inspecting assessing 
 66.25  agency is not required to test a dwelling unit after lead hazard 
 66.26  reduction that was not ordered by the inspecting assessing 
 66.27  agency.  
 66.28     Sec. 65.  Minnesota Statutes 1996, section 144.9504, 
 66.29  subdivision 10, is amended to read: 
 66.30     Subd. 10.  [CASE CLOSURE.] A lead inspection risk 
 66.31  assessment is completed and the responsibility of the inspecting 
 66.32  assessing agency ends when all of the following conditions are 
 66.33  met:  
 66.34     (1) lead orders are written on all known sources of 
 66.35  violations of lead standards under section 144.9508; 
 66.36     (2) compliance with all lead orders has been completed; and 
 67.1      (3) clearance inspections demonstrate that no deteriorated 
 67.2   lead paint, bare soil, or lead dust levels exist that exceed the 
 67.3   standards adopted under section 144.9508.  
 67.4      Sec. 66.  Minnesota Statutes 1996, section 144.9505, 
 67.5   subdivision 1, is amended to read: 
 67.6      Subdivision 1.  [LICENSING AND CERTIFICATION.] (a) Lead 
 67.7   contractors A person shall, before performing abatement or lead 
 67.8   hazard reduction or providing planning services for lead 
 67.9   abatement or lead hazard reduction, obtain a license from the 
 67.10  commissioner as a lead supervisor, lead worker, or lead project 
 67.11  designer.  Workers for lead contractors shall obtain 
 67.12  certification from the commissioner.  The commissioner shall 
 67.13  specify training and testing requirements for licensure and 
 67.14  certification as required in section 144.9508 and shall charge a 
 67.15  fee for the cost of issuing a license or certificate and for 
 67.16  training provided by the commissioner.  Fees collected under 
 67.17  this section shall be set in amounts to be determined by the 
 67.18  commissioner to cover but not exceed the costs of adopting rules 
 67.19  under section 144.9508, the costs of licensure, certification, 
 67.20  and training, and the costs of enforcing licenses and 
 67.21  certificates under this section.  License fees shall be 
 67.22  nonrefundable and must be submitted with each application in the 
 67.23  amount of $50 for each lead supervisor, lead worker, or lead 
 67.24  inspector and $100 for each lead project designer, lead risk 
 67.25  assessor, or certified firm.  All fees received shall be paid 
 67.26  into the state treasury and credited to the lead abatement 
 67.27  licensing and certification account and are appropriated to the 
 67.28  commissioner to cover costs incurred under this section and 
 67.29  section 144.9508. 
 67.30     (b) Contractors Persons shall not advertise or otherwise 
 67.31  present themselves as lead contractors supervisors, lead 
 67.32  workers, or lead project designers unless they have lead 
 67.33  contractor licenses issued by the department of health 
 67.34  commissioner under section 144.9505. 
 67.35     Sec. 67.  Minnesota Statutes 1996, section 144.9505, 
 67.36  subdivision 4, is amended to read: 
 68.1      Subd. 4.  [NOTICE OF LEAD ABATEMENT OR LEAD HAZARD 
 68.2   REDUCTION WORK.] (a) At least five working days before starting 
 68.3   work at each lead abatement or lead hazard reduction worksite, 
 68.4   the person performing the lead abatement or lead hazard 
 68.5   reduction work shall give written notice and an approved work 
 68.6   plan as required in this section to the commissioner and the 
 68.7   appropriate board of health.  Within the limits of 
 68.8   appropriations, the commissioner shall review plans and shall 
 68.9   approve or disapprove them as to compliance with the 
 68.10  requirements in subdivision 5. 
 68.11     (b) This provision does not apply to swab team workers 
 68.12  performing work under an order of an inspecting assessing agency.
 68.13     Sec. 68.  Minnesota Statutes 1996, section 144.9505, 
 68.14  subdivision 5, is amended to read: 
 68.15     Subd. 5.  [ABATEMENT OR LEAD HAZARD REDUCTION WORK PLANS.] 
 68.16  (a) A lead contractor person who performs lead abatement or lead 
 68.17  hazard reduction shall present a lead abatement or lead hazard 
 68.18  reduction work plan to the property owner with each bid or 
 68.19  estimate for lead abatement or lead hazard reduction work.  
 68.20  The work plan does not replace or supersede more stringent 
 68.21  contractual agreements.  A written lead abatement or lead hazard 
 68.22  reduction work plan must be prepared which describes the 
 68.23  equipment and procedures to be used throughout the lead 
 68.24  abatement or lead hazard reduction work project.  At a minimum, 
 68.25  the work plan must describe: 
 68.26     (1) the building area and building components to be worked 
 68.27  on; 
 68.28     (2) the amount of lead-containing material to be removed, 
 68.29  encapsulated, or enclosed; 
 68.30     (3) the schedule to be followed for each work stage; 
 68.31     (4) the workers' personal protection equipment and 
 68.32  clothing; 
 68.33     (5) the dust suppression and debris containment methods; 
 68.34     (6) the lead abatement or lead hazard reduction methods to 
 68.35  be used on each building component; 
 68.36     (7) cleaning methods; 
 69.1      (8) temporary, on-site waste storage, if any; and 
 69.2      (9) the methods for transporting waste material and its 
 69.3   destination. 
 69.4      (b) A lead contractor The work plan shall itemize the costs 
 69.5   for each item listed in paragraph (a) and for any other expenses 
 69.6   associated with the lead abatement or lead hazard reduction work 
 69.7   and shall present these costs be presented to the property owner 
 69.8   with any bid or estimate for lead abatement or lead hazard 
 69.9   reduction work. 
 69.10     (c) A lead contractor The person performing the lead 
 69.11  abatement or lead hazard reduction shall keep a copy of the work 
 69.12  plan readily available at the worksite for the duration of the 
 69.13  project and present it to the inspecting assessing agency on 
 69.14  demand. 
 69.15     (d) A lead contractor The person performing the lead 
 69.16  abatement or lead hazard reduction shall keep a copy of the work 
 69.17  plan on record for one year after completion of the project and 
 69.18  shall present it to the inspecting assessing agency on demand. 
 69.19     (e) This provision does not apply to swab team workers 
 69.20  performing work under an order of an inspecting assessing agency 
 69.21  or providing services at no cost to a property owner with 
 69.22  funding under a state or federal grant. 
 69.23     Sec. 69.  Minnesota Statutes 1997 Supplement, section 
 69.24  144.9506, subdivision 1, is amended to read: 
 69.25     Subdivision 1.  [LICENSE REQUIRED.] (a) A lead 
 69.26  inspector person shall obtain a license as a lead inspector or a 
 69.27  lead risk assessor before performing lead inspections, lead 
 69.28  hazard screens, or lead risk assessments and shall renew 
 69.29  it annually as required in rules adopted under section 144.9508. 
 69.30  The commissioner shall charge a fee and require annual refresher 
 69.31  training, as specified in this section.  A lead inspector or 
 69.32  lead risk assessor shall have the lead inspector's license or 
 69.33  lead risk assessor's license readily available at all times 
 69.34  at an a lead inspection site or lead risk assessment site and 
 69.35  make it available, on request, for inspection examination by the 
 69.36  inspecting assessing agency with jurisdiction over the site.  A 
 70.1   license shall not be transferred.  License fees shall be 
 70.2   nonrefundable and must be submitted with each application in the 
 70.3   amount of $50 for each lead inspector and $100 for each lead 
 70.4   risk assessor. 
 70.5      (b) Individuals shall not advertise or otherwise present 
 70.6   themselves as lead inspectors or lead risk assessors unless 
 70.7   licensed by the commissioner. 
 70.8      (c) An individual may use sodium rhodizonate to test paint 
 70.9   for the presence of lead without obtaining a lead inspector or 
 70.10  lead risk assessor license, but must not represent the test as a 
 70.11  lead inspection or lead risk assessment. 
 70.12     Sec. 70.  Minnesota Statutes 1996, section 144.9506, 
 70.13  subdivision 2, is amended to read: 
 70.14     Subd. 2.  [LICENSE APPLICATION.] An application for a 
 70.15  license or license renewal shall be on a form provided by the 
 70.16  commissioner and shall include: 
 70.17     (1) a $50 nonrefundable fee, in a form approved by the 
 70.18  commissioner; and 
 70.19     (2) evidence that the applicant has successfully completed 
 70.20  a lead inspector training course approved under this section or 
 70.21  from another state with which the commissioner has established 
 70.22  reciprocity.  The fee required in this section is waived for 
 70.23  federal, state, or local government employees within Minnesota. 
 70.24     Sec. 71.  Minnesota Statutes 1996, section 144.9507, 
 70.25  subdivision 2, is amended to read: 
 70.26     Subd. 2.  [LEAD INSPECTION RISK ASSESSMENT CONTRACTS.] The 
 70.27  commissioner shall, within available federal or state 
 70.28  appropriations, contract with boards of health to conduct 
 70.29  lead inspections risk assessments to determine sources of lead 
 70.30  contamination and to issue and enforce lead orders according to 
 70.31  section 144.9504.  
 70.32     Sec. 72.  Minnesota Statutes 1996, section 144.9507, 
 70.33  subdivision 3, is amended to read: 
 70.34     Subd. 3.  [TEMPORARY LEAD-SAFE HOUSING CONTRACTS.] The 
 70.35  commissioner shall, within the limits of available 
 70.36  appropriations, contract with boards of health for temporary 
 71.1   housing, to be used in meeting relocation requirements in 
 71.2   section 144.9504, and award grants to boards of health for the 
 71.3   purposes of paying housing and relocation costs under section 
 71.4   144.9504.  The commissioner may use up to 15 percent of the 
 71.5   available appropriations to provide temporary lead-safe housing 
 71.6   in areas of the state in which the commissioner has the duty 
 71.7   under section 144.9504 to perform secondary prevention. 
 71.8      Sec. 73.  Minnesota Statutes 1996, section 144.9507, 
 71.9   subdivision 4, is amended to read: 
 71.10     Subd. 4.  [LEAD CLEANUP EQUIPMENT AND MATERIAL GRANTS TO 
 71.11  NONPROFIT ORGANIZATIONS.] (a) The commissioner shall, within the 
 71.12  limits of available state or federal appropriations, provide 
 71.13  funds for lead cleanup equipment and materials under a grant 
 71.14  program to nonprofit community-based organizations in areas at 
 71.15  high risk for toxic lead exposure, as provided for in section 
 71.16  144.9503.  
 71.17     (b) Nonprofit community-based organizations in areas at 
 71.18  high risk for toxic lead exposure may apply for grants from the 
 71.19  commissioner to purchase lead cleanup equipment and materials 
 71.20  and to pay for training for staff and volunteers for lead 
 71.21  licensure under sections 144.9505 and 144.9506. 
 71.22     (c) For purposes of this section, lead cleanup equipment 
 71.23  and materials means high efficiency particle accumulator (HEPA) 
 71.24  and wet vacuum cleaners, wash water filters, mops, buckets, 
 71.25  hoses, sponges, protective clothing, drop cloths, wet scraping 
 71.26  equipment, secure containers, dust and particle containment 
 71.27  material, and other cleanup and containment materials to remove 
 71.28  loose paint and plaster, patch plaster, control household dust, 
 71.29  wax floors, clean carpets and sidewalks, and cover bare soil. 
 71.30     (d) The grantee's staff and volunteers may make lead 
 71.31  cleanup equipment and materials available to residents and 
 71.32  property owners and instruct them on the proper use of the 
 71.33  equipment.  Lead cleanup equipment and materials must be made 
 71.34  available to low-income households, as defined by federal 
 71.35  guidelines, on a priority basis at no fee.  Other households may 
 71.36  be charged on a sliding fee scale. 
 72.1      (e) The grantee shall not charge a fee for services 
 72.2   performed using the equipment or materials. 
 72.3      (f) Any funds appropriated for purposes of this subdivision 
 72.4   that are not awarded, due to a lack of acceptable proposals for 
 72.5   the full amount appropriated, may be used for any purpose 
 72.6   authorized in this section.  
 72.7      Sec. 74.  Minnesota Statutes 1996, section 144.9508, 
 72.8   subdivision 1, is amended to read: 
 72.9      Subdivision 1.  [SAMPLING AND ANALYSIS.] The commissioner 
 72.10  shall adopt, by rule, visual inspection and sampling and 
 72.11  analysis methods for:  
 72.12     (1) lead inspections under section 144.9504, lead hazard 
 72.13  screens, lead risk assessments, and clearance inspections; 
 72.14     (2) environmental surveys of lead in paint, soil, dust, and 
 72.15  drinking water to determine census tracts that are areas at high 
 72.16  risk for toxic lead exposure; 
 72.17     (3) soil sampling for soil used as replacement soil; and 
 72.18     (4) drinking water sampling, which shall be done in 
 72.19  accordance with lab certification requirements and analytical 
 72.20  techniques specified by Code of Federal Regulations, title 40, 
 72.21  section 141.89; and 
 72.22     (5) sampling to determine whether at least 25 percent of 
 72.23  the soil samples collected from a census tract within a standard 
 72.24  metropolitan statistical area contain lead in concentrations 
 72.25  that exceed 100 parts per million.  
 72.26     Sec. 75.  Minnesota Statutes 1996, section 144.9508, is 
 72.27  amended by adding a subdivision to read: 
 72.28     Subd. 2a.  [LEAD STANDARDS FOR EXTERIOR SURFACES AND STREET 
 72.29  DUST.] The commissioner may, by rule, establish lead standards 
 72.30  for exterior horizontal surfaces, concrete or other impervious 
 72.31  surfaces, and street dust on residential property to protect the 
 72.32  public health and the environment. 
 72.33     Sec. 76.  Minnesota Statutes 1996, section 144.9508, 
 72.34  subdivision 3, is amended to read: 
 72.35     Subd. 3.  [LEAD CONTRACTORS AND WORKERS LICENSURE AND 
 72.36  CERTIFICATION.] The commissioner shall adopt rules to license 
 73.1   lead contractors and to certify supervisors, lead workers of 
 73.2   lead contractors who perform lead abatement or lead hazard 
 73.3   reduction, lead project designers, lead inspectors, and lead 
 73.4   risk assessors.  The commissioner shall also adopt rules 
 73.5   requiring certification of firms that perform lead abatement, 
 73.6   lead hazard reduction, lead hazard screens, or lead risk 
 73.7   assessments.  The commissioner shall require periodic renewal of 
 73.8   licenses and certificates and shall establish the renewal 
 73.9   periods. 
 73.10     Sec. 77.  Minnesota Statutes 1996, section 144.9508, 
 73.11  subdivision 4, is amended to read: 
 73.12     Subd. 4.  [LEAD TRAINING COURSE.] The commissioner shall 
 73.13  establish by rule a permit fee to be paid by a training course 
 73.14  provider on application for a training course permit or renewal 
 73.15  period for each lead-related training course required for 
 73.16  certification or licensure.  The commissioner shall establish 
 73.17  criteria in rules for the content and presentation of training 
 73.18  courses intended to qualify trainees for licensure under 
 73.19  subdivision 3.  Training course permit fees shall be 
 73.20  nonrefundable and must be submitted with each application in the 
 73.21  amount of $500 for an initial training course, $250 for renewal 
 73.22  of a permit for an initial training course, $250 for a refresher 
 73.23  training course, and $125 for renewal of a permit of a refresher 
 73.24  training course. 
 73.25     Sec. 78.  Minnesota Statutes 1996, section 144.9509, 
 73.26  subdivision 2, is amended to read: 
 73.27     Subd. 2.  [DISCRIMINATION.] A person who discriminates 
 73.28  against or otherwise sanctions an employee who complains to or 
 73.29  cooperates with the inspecting assessing agency in administering 
 73.30  sections 144.9501 to 144.9509 is guilty of a petty misdemeanor.  
 73.31     Sec. 79.  [144.9511] [LEAD-SAFE PROPERTY CERTIFICATION.] 
 73.32     Subdivision 1.  [LEAD-SAFE PROPERTY CERTIFICATION PROGRAM 
 73.33  ESTABLISHED.] (a) The commissioner shall establish, within the 
 73.34  limits of available appropriations, recommended protocols for a 
 73.35  voluntary lead-safe property certification program for 
 73.36  residential properties.  This program shall involve an initial 
 74.1   property certification process, a property condition report, and 
 74.2   a lead-safe property certification booklet. 
 74.3      (b) The commissioner shall establish recommended protocols 
 74.4   for an initial property certification process composed of the 
 74.5   following: 
 74.6      (1) a lead hazard screen, which shall include a visual 
 74.7   evaluation of a residential property for both deteriorated paint 
 74.8   and bare soil; and 
 74.9      (2) a quantitative measure of lead in dust within the 
 74.10  structure and in common areas as determined by rule adopted 
 74.11  under authority of section 144.9508. 
 74.12     (c) The commissioner shall establish forms, checklists, and 
 74.13  protocols for conducting a property condition report.  A 
 74.14  property condition report is an evaluation of property 
 74.15  components, without regard to aesthetic considerations, to 
 74.16  determine whether any of the following conditions are likely to 
 74.17  occur within one year of the report: 
 74.18     (1) that paint will become chipped, flaked, or cracked; 
 74.19     (2) that structural defects in the roof, windows, or 
 74.20  plumbing will fail and cause paint to deteriorate; 
 74.21     (3) that window wells or window troughs will not be 
 74.22  cleanable and washable; 
 74.23     (4) that windows will generate dust due to friction; 
 74.24     (5) that cabinet, room, and threshold doors will rub 
 74.25  against casings or have repeated contact with painted surfaces; 
 74.26     (6) that floors will not be smooth and cleanable and 
 74.27  carpeted floors will not be cleanable; 
 74.28     (7) that soil will not remain covered; 
 74.29     (8) that bare soil in vegetable and flower gardens will not 
 74.30  (i) be inaccessible to children or (ii) be tested to determine 
 74.31  if it is below the soil standard under section 144.9508; 
 74.32     (9) that parking areas will not remain covered by an 
 74.33  impervious surface or gravel; 
 74.34     (10) that covered soil will erode, particularly in play 
 74.35  areas; and 
 74.36     (11) that gutters and down spouts will not function 
 75.1   correctly. 
 75.2      (d) The commissioner shall develop a lead-safe property 
 75.3   certification booklet that contains the following: 
 75.4      (1) information on how property owners and their 
 75.5   maintenance personnel can perform essential maintenance 
 75.6   practices to correct any of the property component conditions 
 75.7   listed in paragraph (c) that may occur; 
 75.8      (2) the lead-safe work practices fact sheets created under 
 75.9   section 144.9503, subdivision 7; 
 75.10     (3) forms, checklists, and copies of recommended lead-safe 
 75.11  property certification certificates; and 
 75.12     (4) an educational sheet for landlords to give to tenants 
 75.13  on the importance of having tenants inform property owners or 
 75.14  designated maintenance staff of one or more of the conditions 
 75.15  listed in paragraph (c). 
 75.16     Subd. 2.  [CONDITIONS FOR CERTIFICATION.] A property shall 
 75.17  be certified as lead safe only if the following conditions are 
 75.18  met: 
 75.19     (1) the property passes the initial certification process 
 75.20  in subdivision 1; 
 75.21     (2) the property owner agrees in writing to perform 
 75.22  essential maintenance practices; 
 75.23     (3) the property owner agrees in writing to use lead-safe 
 75.24  work practices, as provided for under section 144.9503, 
 75.25  subdivision 7; 
 75.26     (4) the property owner performs essential maintenance as 
 75.27  the need arises or uses maintenance personnel who have completed 
 75.28  a U.S. Environmental Protection Agency- or Minnesota department 
 75.29  of health-approved maintenance training program or course to 
 75.30  perform essential maintenance; 
 75.31     (5) the lead-safe property certification booklet is 
 75.32  distributed to the property owner, maintenance personnel, and 
 75.33  tenants at the completion of the initial certification process; 
 75.34  and 
 75.35     (6) a copy of the lead-safe property certificate is filed 
 75.36  with the commissioner along with a $5 filing fee. 
 76.1      Subd. 3.  [LEAD STANDARDS.] Lead standards used in this 
 76.2   section shall be those approved by the commissioner under 
 76.3   section 144.9508. 
 76.4      Subd. 4.  [LEAD RISK ASSESSORS.] Lead-safe property 
 76.5   certifications shall only be performed by lead risk assessors 
 76.6   licensed by the commissioner under section 144.9506. 
 76.7      Subd. 5.  [EXPIRATION.] Lead-safe property certificates are 
 76.8   valid for one year. 
 76.9      Subd. 6.  [LIST OF CERTIFIED PROPERTIES.] Within the limits 
 76.10  of available appropriations, the commissioner shall maintain a 
 76.11  list of all properties certified as lead-safe under this section 
 76.12  and make it freely available to the public. 
 76.13     Subd. 7.  [RE-APPLICATION.] Properties failing the initial 
 76.14  property certification may re-apply for a lead-safe property 
 76.15  certification by having a new initial certification process 
 76.16  performed and by correcting any condition listed by the licensed 
 76.17  lead risk assessor in the property condition report.  Properties 
 76.18  that fail the initial property certification process must have 
 76.19  the condition corrected by the property owner, by trained 
 76.20  maintenance staff, or by a contractor with personnel licensed 
 76.21  for lead hazard reduction or lead abatement work by the 
 76.22  commissioner under section 144.9505, in order to have the 
 76.23  property certified. 
 76.24     Sec. 80.  Minnesota Statutes 1996, section 144.99, 
 76.25  subdivision 1, is amended to read: 
 76.26     Subdivision 1.  [REMEDIES AVAILABLE.] The provisions of 
 76.27  chapters 103I and 157 and sections 115.71 to 115.77; 144.12, 
 76.28  subdivision 1, paragraphs (1), (2), (5), (6), (10), (12), (13), 
 76.29  (14), and (15); 144.121; 144.1222; 144.35; 144.381 to 144.385; 
 76.30  144.411 to 144.417; 144.491; 144.495; 144.71 to 144.74; 144.9501 
 76.31  to 144.9509; 144.992; 326.37 to 326.45; 326.57 to 326.785; 
 76.32  327.10 to 327.131; and 327.14 to 327.28 and all rules, orders, 
 76.33  stipulation agreements, settlements, compliance agreements, 
 76.34  licenses, registrations, certificates, and permits adopted or 
 76.35  issued by the department or under any other law now in force or 
 76.36  later enacted for the preservation of public health may, in 
 77.1   addition to provisions in other statutes, be enforced under this 
 77.2   section. 
 77.3      Sec. 81.  Minnesota Statutes 1996, section 144A.44, 
 77.4   subdivision 2, is amended to read: 
 77.5      Subd. 2.  [INTERPRETATION AND ENFORCEMENT OF RIGHTS.] These 
 77.6   rights are established for the benefit of persons who receive 
 77.7   home care services.  "Home care services" means home care 
 77.8   services as defined in section 144A.43, subdivision 3.  A home 
 77.9   care provider may not require a person to surrender these rights 
 77.10  as a condition of receiving services.  A guardian or conservator 
 77.11  or, when there is no guardian or conservator, a designated 
 77.12  person, may seek to enforce these rights.  This statement of 
 77.13  rights does not replace or diminish other rights and liberties 
 77.14  that may exist relative to persons receiving home care services, 
 77.15  persons providing home care services, or providers licensed 
 77.16  under Laws 1987, chapter 378.  A copy of these rights must be 
 77.17  provided to an individual at the time home care services are 
 77.18  initiated.  The copy shall also contain the address and phone 
 77.19  number of the office of health facility complaints and the 
 77.20  office of the ombudsman for older Minnesotans and a brief 
 77.21  statement describing how to file a complaint with that office 
 77.22  these offices.  Information about how to contact the office of 
 77.23  the ombudsman for older Minnesotans shall be included in notices 
 77.24  of change in client fees and in notices where home care 
 77.25  providers initiate transfer or discontinuation of services. 
 77.26     Sec. 82.  Minnesota Statutes 1997 Supplement, section 
 77.27  144A.4605, subdivision 4, is amended to read: 
 77.28     Subd. 4.  [LICENSE REQUIRED.] (a) A housing with services 
 77.29  establishment registered under chapter 144D that is required to 
 77.30  obtain a home care license must obtain an assisted living home 
 77.31  care license according to this section or a class A or class E 
 77.32  license according to rule.  A housing with services 
 77.33  establishment that obtains a class E license under this 
 77.34  subdivision remains subject to the payment limitations in 
 77.35  sections 256B.0913, subdivision 5, paragraph (h), and 256B.0915, 
 77.36  subdivision 3, paragraph (g). 
 78.1      (b) A board and lodging establishment registered for 
 78.2   special services as of December 31, 1996, and also registered as 
 78.3   a housing with services establishment under chapter 144D, must 
 78.4   deliver home care services according to sections 144A.43 to 
 78.5   144A.49, and may apply for a waiver from requirements under 
 78.6   Minnesota Rules, parts 4668.0002 to 4668.0240, to operate a 
 78.7   licensed agency under the standards of section 157.17.  Such 
 78.8   waivers as may be granted by the department will expire upon 
 78.9   promulgation of home care rules implementing section 144A.4605. 
 78.10     (c) An adult foster care provider licensed by the 
 78.11  department of human services and registered under chapter 144D 
 78.12  may continue to provide health-related services under its foster 
 78.13  care license until the promulgation of home care rules 
 78.14  implementing this section. 
 78.15     Sec. 83.  [145.905] [LOCATION FOR BREAST-FEEDING.] 
 78.16     A mother may breast-feed in any location, public or 
 78.17  private, where the mother and child are otherwise authorized to 
 78.18  be, irrespective of whether the nipple of the mother's breast is 
 78.19  uncovered during or incidental to the breast-feeding. 
 78.20     Sec. 84.  [145.926] [ABSTINENCE EDUCATION GRANT PROGRAM.] 
 78.21     The commissioner of health shall expend federal funds for 
 78.22  abstinence education programs provided under United States Code, 
 78.23  title 42, section 710, and state matching funds for abstinence 
 78.24  education programs only to an abstinence education program that 
 78.25  complies with the state plan that has been submitted to and 
 78.26  approved by the federal Department of Health and Human Services. 
 78.27     Sec. 85.  [145.9266] [FETAL ALCOHOL SYNDROME.] 
 78.28     Subdivision 1.  [PUBLIC AWARENESS.] The commissioner of 
 78.29  health shall design and implement an ongoing statewide campaign 
 78.30  to raise public awareness about fetal alcohol syndrome and other 
 78.31  effects of prenatal alcohol exposure.  The campaign shall 
 78.32  include messages directed to the general population as well as 
 78.33  culturally specific and community-based messages.  A toll-free 
 78.34  resource and referral telephone line shall be included in the 
 78.35  messages.  The commissioner of health shall conduct an 
 78.36  evaluation to determine the effectiveness of the campaign. 
 79.1      Subd. 2.  [STATEWIDE NETWORK OF FAS DIAGNOSTIC CLINICS.] A 
 79.2   statewide network of regional fetal alcohol syndrome diagnostic 
 79.3   clinics shall be developed between the department of health and 
 79.4   the University of Minnesota.  This collaboration shall be based 
 79.5   on a statewide needs assessment and shall include involvement 
 79.6   from consumers, providers, and payors.  By the end of calendar 
 79.7   year 1998, a plan shall be developed for the clinic network, and 
 79.8   shall include a comprehensive evaluation component.  Sites shall 
 79.9   be established in calendar year 1999.  The commissioner shall 
 79.10  not access or collect individually identifiable data for the 
 79.11  statewide network of regional fetal alcohol syndrome diagnostic 
 79.12  clinics.  Data collected at the clinics shall be maintained 
 79.13  according to applicable data privacy laws, including section 
 79.14  144.335. 
 79.15     Subd. 3.  [PROFESSIONAL TRAINING ABOUT FAS.] (a) The 
 79.16  commissioner of health, in collaboration with the board of 
 79.17  medical practice, the board of nursing, and other professional 
 79.18  boards and state agencies, shall develop curricula and materials 
 79.19  about fetal alcohol syndrome for professional training of health 
 79.20  care providers, social service providers, educators, and 
 79.21  judicial and corrections systems professionals.  The training 
 79.22  and curricula shall increase knowledge and develop practical 
 79.23  skills of professionals to help them address the needs of 
 79.24  at-risk pregnant women and the needs of individuals affected by 
 79.25  fetal alcohol syndrome or fetal alcohol effects and their 
 79.26  families. 
 79.27     (b) Training for health care providers shall focus on skill 
 79.28  building for screening, counseling, referral, and follow-up for 
 79.29  women using or at risk of using alcohol while pregnant.  
 79.30  Training for health care professionals shall include methods for 
 79.31  diagnosis and evaluation of fetal alcohol syndrome and fetal 
 79.32  alcohol effects.  Training for education, judicial, and 
 79.33  corrections professionals shall involve effective education 
 79.34  strategies, methods to identify the behaviors and learning 
 79.35  styles of children with alcohol-related birth defects, and 
 79.36  methods to identify available referral and community resources. 
 80.1      (c) Training for social service providers shall focus on 
 80.2   resources for assessing, referring, and treating at-risk 
 80.3   pregnant women, changes in the mandatory reporting and 
 80.4   commitment laws, and resources for affected children and their 
 80.5   families.  
 80.6      Subd. 4.  [FAS COMMUNITY GRANT PROGRAM.] The commissioner 
 80.7   of health shall administer a grant program to provide money to 
 80.8   community organizations and coalitions to collaborate on fetal 
 80.9   alcohol syndrome prevention and intervention strategies and 
 80.10  activities.  The commissioner shall disburse grant money through 
 80.11  a request for proposal process or sole-source distribution where 
 80.12  appropriate, and shall include at least one grant award for 
 80.13  transitional skills and services for individuals with fetal 
 80.14  alcohol syndrome or fetal alcohol effects. 
 80.15     Subd. 5.  [SCHOOL PILOT PROGRAMS.] (a) The commissioner of 
 80.16  children, families, and learning shall award up to four grants 
 80.17  to schools for pilot programs to identify and implement 
 80.18  effective educational strategies for individuals with fetal 
 80.19  alcohol syndrome and other alcohol-related birth defects.  
 80.20     (b) One grant shall be awarded in each of the following age 
 80.21  categories:  
 80.22     (1) birth to three years; 
 80.23     (2) three to five years; 
 80.24     (3) six to 12 years; and 
 80.25     (4) 13 to 18 years.  
 80.26     (c) Grant proposals must include an evaluation plan, 
 80.27  demonstrate evidence of a collaborative or multisystem approach, 
 80.28  provide parent education and support, and show evidence of a 
 80.29  child- and family-focused approach consistent with 
 80.30  research-based educational practices and other guidelines 
 80.31  developed by the department of children, families, and learning. 
 80.32     (d) Children participating in the pilot program sites may 
 80.33  be identified through child find activities or a diagnostic 
 80.34  clinic.  No identification activity may be undertaken without 
 80.35  the consent of a child's parent or guardian. 
 80.36     Subd. 6.  [FETAL ALCOHOL COORDINATING BOARD; DUTIES.] (a) 
 81.1   The fetal alcohol coordinating board consists of: 
 81.2      (1) the commissioners of health, human services, 
 81.3   corrections, public safety, economic security, and children, 
 81.4   families, and learning; 
 81.5      (2) the director of the office of strategic and long-range 
 81.6   planning; 
 81.7      (3) the chair of the maternal and child health advisory 
 81.8   task force established by section 145.881, or the chair's 
 81.9   designee; 
 81.10     (4) a representative of the University of Minnesota 
 81.11  academic health center, appointed by the provost; 
 81.12     (5) five members from the general public appointed by the 
 81.13  governor, one of whom must be a family member of an individual 
 81.14  with fetal alcohol syndrome or fetal alcohol effect; and 
 81.15     (6) one member from the judiciary appointed by the chief 
 81.16  justice of the supreme court. 
 81.17  Terms, compensation, removal, and filling of vacancies of 
 81.18  appointed members are governed by section 15.0575.  The board 
 81.19  shall elect a chair from its membership to serve a one-year 
 81.20  term.  The commissioner of health shall provide staff and 
 81.21  consultant support for the board.  Support must be provided 
 81.22  based on an annual budget and work plan developed by the board.  
 81.23  The board shall contract with the department of health for 
 81.24  necessary administrative services.  Administrative services 
 81.25  include personnel, budget, payroll, and contract 
 81.26  administration.  The board shall adopt an annual budget and work 
 81.27  program. 
 81.28     (b) Board duties include:  
 81.29     (1) reviewing programs of state agencies that involve fetal 
 81.30  alcohol syndrome and coordinating those that are 
 81.31  interdepartmental in nature; 
 81.32     (2) providing an integrated and comprehensive approach to 
 81.33  fetal alcohol syndrome prevention and intervention strategies 
 81.34  both at a local and statewide level; 
 81.35     (3) approving on an annual basis the statewide public 
 81.36  awareness campaign as designed and implemented by the 
 82.1   commissioner of health under subdivision 1; 
 82.2      (4) reviewing fetal alcohol syndrome community grants 
 82.3   administered by the commissioner of health under subdivision 4; 
 82.4   and 
 82.5      (5) submitting a report to the governor on January 15 of 
 82.6   each odd-numbered year summarizing board operations, activities, 
 82.7   findings, and recommendations, and fetal alcohol syndrome 
 82.8   activities throughout the state. 
 82.9      (c) The board expires on January 1, 2001. 
 82.10     Subd. 7.  [FEDERAL FUNDS; CONTRACTS; DONATIONS.] The fetal 
 82.11  alcohol coordinating board may apply for, receive, and disburse 
 82.12  federal funds made available to the state by federal law or 
 82.13  rules adopted for any purpose related to the powers and duties 
 82.14  of the board.  The board shall comply with any requirements of 
 82.15  federal law, rules, and regulations in order to apply for, 
 82.16  receive, and disburse funds.  The board may contract with or 
 82.17  provide grants to public and private nonprofit entities.  The 
 82.18  board may accept donations or grants from any public or private 
 82.19  entity.  Money received by the board must be deposited in a 
 82.20  separate account in the state treasury and invested by the state 
 82.21  board of investment.  The amount deposited, including investment 
 82.22  earnings, is appropriated to the board to carry out its duties.  
 82.23  Money deposited in the state treasury shall not cancel.  
 82.24     Sec. 86.  Minnesota Statutes 1996, section 145A.15, 
 82.25  subdivision 2, is amended to read: 
 82.26     Subd. 2.  [GRANT RECIPIENTS.] (a) The commissioner is 
 82.27  authorized to award grants to programs that meet the 
 82.28  requirements of subdivision 3 and include a strong child abuse 
 82.29  and neglect prevention focus for families in need of services.  
 82.30  Priority will be given to families considered to be in need of 
 82.31  additional services.  These families include, but are not 
 82.32  limited to, families with: 
 82.33     (1) adolescent parents; 
 82.34     (2) a history of alcohol and other drug abuse; 
 82.35     (3) a history of child abuse, domestic abuse, or other 
 82.36  types of violence in the family of origin; 
 83.1      (4) a history of domestic abuse, rape, or other forms of 
 83.2   victimization; 
 83.3      (5) reduced cognitive functioning; 
 83.4      (6) a lack of knowledge of child growth and development 
 83.5   stages; 
 83.6      (7) low resiliency to adversities and environmental 
 83.7   stresses; or 
 83.8      (8) lack of sufficient financial resources to meet their 
 83.9   needs. 
 83.10     (b) Grants made under this section shall be used to fund 
 83.11  existing and new home visiting programs.  In awarding grants 
 83.12  under this section, the commissioner shall give priority to new 
 83.13  home visiting programs with local matching funds. 
 83.14     Sec. 87.  Minnesota Statutes 1996, section 157.15, 
 83.15  subdivision 9, is amended to read: 
 83.16     Subd. 9.  [MOBILE FOOD UNIT.] "Mobile food unit" means a 
 83.17  food and beverage service establishment that is a vehicle 
 83.18  mounted unit, either motorized or trailered, operating no more 
 83.19  than 14 21 days annually at any one place or is operated in 
 83.20  conjunction with a permanent business licensed under this 
 83.21  chapter or chapter 28A at the site of the permanent business by 
 83.22  the same individual or company, and readily movable, without 
 83.23  disassembling, for transport to another location. 
 83.24     Sec. 88.  Minnesota Statutes 1996, section 157.15, 
 83.25  subdivision 12, is amended to read: 
 83.26     Subd. 12.  [RESTAURANT.] "Restaurant" means a food and 
 83.27  beverage service establishment, whether the establishment serves 
 83.28  alcoholic or nonalcoholic beverages, which operates from a 
 83.29  location for more than 14 21 days annually.  Restaurant does not 
 83.30  include a food cart or a mobile food unit. 
 83.31     Sec. 89.  Minnesota Statutes 1996, section 157.15, 
 83.32  subdivision 12a, is amended to read: 
 83.33     Subd. 12a.  [SEASONAL PERMANENT FOOD STAND.] "Seasonal 
 83.34  permanent food stand" means a food and beverage service 
 83.35  establishment which is a permanent food service stand or 
 83.36  building, but which operates no more than 14 21 days annually. 
 84.1      Sec. 90.  Minnesota Statutes 1996, section 157.15, 
 84.2   subdivision 13, is amended to read: 
 84.3      Subd. 13.  [SEASONAL TEMPORARY FOOD STAND.] "Seasonal 
 84.4   temporary food stand" means a food and beverage service 
 84.5   establishment that is a food stand which is disassembled and 
 84.6   moved from location to location, but which operates no more than 
 84.7   14 21 days annually at any one location. 
 84.8      Sec. 91.  Minnesota Statutes 1996, section 157.15, 
 84.9   subdivision 14, is amended to read: 
 84.10     Subd. 14.  [SPECIAL EVENT FOOD STAND.] "Special event food 
 84.11  stand" means a food and beverage service establishment which is 
 84.12  used in conjunction with celebrations and special events, and 
 84.13  which operates once or twice no more than three times annually 
 84.14  for no more than seven ten total days. 
 84.15     Sec. 92.  Minnesota Statutes 1997 Supplement, section 
 84.16  157.16, subdivision 3, is amended to read: 
 84.17     Subd. 3.  [ESTABLISHMENT FEES; DEFINITIONS.] (a) The 
 84.18  following fees are required for food and beverage service 
 84.19  establishments, hotels, motels, lodging establishments, and 
 84.20  resorts licensed under this chapter.  Food and beverage service 
 84.21  establishments must pay the highest applicable fee under 
 84.22  paragraph (e), clause (1), (2), (3), or (4), and establishments 
 84.23  serving alcohol must pay the highest applicable fee under 
 84.24  paragraph (e), clause (6) or (7). 
 84.25     (b) All food and beverage service establishments, except 
 84.26  special event food stands, and all hotels, motels, lodging 
 84.27  establishments, and resorts shall pay an annual base fee of $100.
 84.28     (c) A special event food stand shall pay a flat fee 
 84.29  of $60 $30 annually.  "Special event food stand" means a fee 
 84.30  category where food is prepared or served in conjunction with 
 84.31  celebrations, county fairs, or special events from a special 
 84.32  event food stand as defined in section 157.15. 
 84.33     (d) A special event food stand-limited shall pay a flat fee 
 84.34  of $30. 
 84.35     (e) In addition to the base fee in paragraph (b), each food 
 84.36  and beverage service establishment, other than a special event 
 85.1   food stand, and each hotel, motel, lodging establishment, and 
 85.2   resort shall pay an additional annual fee for each fee category 
 85.3   as specified in this paragraph: 
 85.4      (1) Limited food menu selection, $30.  "Limited food menu 
 85.5   selection" means a fee category that provides one or more of the 
 85.6   following: 
 85.7      (i) prepackaged food that receives heat treatment and is 
 85.8   served in the package; 
 85.9      (ii) frozen pizza that is heated and served; 
 85.10     (iii) a continental breakfast such as rolls, coffee, juice, 
 85.11  milk, and cold cereal; 
 85.12     (iv) soft drinks, coffee, or nonalcoholic beverages; or 
 85.13     (v) cleaning for eating, drinking, or cooking utensils, 
 85.14  when the only food served is prepared off site. 
 85.15     (2) Small establishment, including boarding establishments, 
 85.16  $55.  "Small establishment" means a fee category that has no 
 85.17  salad bar and meets one or more of the following: 
 85.18     (i) possesses food service equipment that consists of no 
 85.19  more than a deep fat fryer, a grill, two hot holding containers, 
 85.20  and one or more microwave ovens; 
 85.21     (ii) serves dipped ice cream or soft serve frozen desserts; 
 85.22     (iii) serves breakfast in an owner-occupied bed and 
 85.23  breakfast establishment; 
 85.24     (iv) is a boarding establishment; or 
 85.25     (v) meets the equipment criteria in clause (3), item (i) or 
 85.26  (ii), and has a maximum patron seating capacity of not more than 
 85.27  50.  
 85.28     (3) Medium establishment, $150.  "Medium establishment" 
 85.29  means a fee category that meets one or more of the following: 
 85.30     (i) possesses food service equipment that includes a range, 
 85.31  oven, steam table, salad bar, or salad preparation area; 
 85.32     (ii) possesses food service equipment that includes more 
 85.33  than one deep fat fryer, one grill, or two hot holding 
 85.34  containers; or 
 85.35     (iii) is an establishment where food is prepared at one 
 85.36  location and served at one or more separate locations. 
 86.1      Establishments meeting criteria in clause (2), item (v), 
 86.2   are not included in this fee category.  
 86.3      (4) Large establishment, $250.  "Large establishment" means 
 86.4   either: 
 86.5      (i) a fee category that (A) meets the criteria in clause 
 86.6   (3), items (i) or (ii), for a medium establishment, (B) seats 
 86.7   more than 175 people, and (C) offers the full menu selection an 
 86.8   average of five or more days a week during the weeks of 
 86.9   operation; or 
 86.10     (ii) a fee category that (A) meets the criteria in clause 
 86.11  (3), item (iii), for a medium establishment, and (B) prepares 
 86.12  and serves 500 or more meals per day. 
 86.13     (5) Other food and beverage service, including food carts, 
 86.14  mobile food units, seasonal temporary food stands, and seasonal 
 86.15  permanent food stands, $30. 
 86.16     (6) Beer or wine table service, $30.  "Beer or wine table 
 86.17  service" means a fee category where the only alcoholic beverage 
 86.18  service is beer or wine, served to customers seated at tables. 
 86.19     (7) Alcoholic beverage service, other than beer or wine 
 86.20  table service, $75. 
 86.21     "Alcohol beverage service, other than beer or wine table 
 86.22  service" means a fee category where alcoholic mixed drinks are 
 86.23  served or where beer or wine are served from a bar. 
 86.24     (8) Lodging per sleeping accommodation unit, $4, including 
 86.25  hotels, motels, lodging establishments, and resorts, up to a 
 86.26  maximum of $400.  "Lodging per sleeping accommodation unit" 
 86.27  means a fee category including the number of guest rooms, 
 86.28  cottages, or other rental units of a hotel, motel, lodging 
 86.29  establishment, or resort; or the number of beds in a dormitory. 
 86.30     (9) First public swimming pool, $100; each additional 
 86.31  public swimming pool, $50.  "Public swimming pool" means a fee 
 86.32  category that has the meaning given in Minnesota Rules, part 
 86.33  4717.0250, subpart 8. 
 86.34     (10) First spa, $50; each additional spa, $25.  "Spa pool" 
 86.35  means a fee category that has the meaning given in Minnesota 
 86.36  Rules, part 4717.0250, subpart 9. 
 87.1      (11) Private sewer or water, $30.  "Individual private 
 87.2   water" means a fee category with a water supply other than a 
 87.3   community public water supply as defined in Minnesota Rules, 
 87.4   chapter 4720.  "Individual private sewer" means a fee category 
 87.5   with an individual sewage treatment system which uses subsurface 
 87.6   treatment and disposal. 
 87.7      (f) (e) A fee is not required for a food and beverage 
 87.8   service establishment operated by a school as defined in 
 87.9   sections 120.05 and 120.101. 
 87.10     (g) (f) A fee of $150 for review of the construction plans 
 87.11  must accompany the initial license application for food and 
 87.12  beverage service establishments, hotels, motels, lodging 
 87.13  establishments, or resorts. 
 87.14     (h) (g) When existing food and beverage service 
 87.15  establishments, hotels, motels, lodging establishments, or 
 87.16  resorts are extensively remodeled, a fee of $150 must be 
 87.17  submitted with the remodeling plans. 
 87.18     (i) (h) Seasonal temporary food stands, and special event 
 87.19  food stands, and special event food stands-limited are not 
 87.20  required to submit construction or remodeling plans for review. 
 87.21     Sec. 93.  Minnesota Statutes 1996, section 214.03, is 
 87.22  amended to read: 
 87.23     214.03 [STANDARDIZED TESTS.] 
 87.24     Subdivision 1.  [STANDARDIZED TESTS USED.] All state 
 87.25  examining and licensing boards, other than the state board of 
 87.26  law examiners, the state board of professional responsibility or 
 87.27  any other board established by the supreme court to regulate the 
 87.28  practice of law and judicial functions, shall use national 
 87.29  standardized tests for the objective, nonpractical portion of 
 87.30  any examination given to prospective licensees to the extent 
 87.31  that such national standardized tests are appropriate, except 
 87.32  when the subject matter of the examination relates to the 
 87.33  application of Minnesota law to the profession or calling being 
 87.34  licensed.  
 87.35     Subd. 2.  [HEALTH-RELATED BOARDS; SPECIAL ACCOUNT.] An 
 87.36  account is established in the special revenue fund where a 
 88.1   health-related licensing board may deposit applicants' payments 
 88.2   for national or regional standardized tests.  Money in the 
 88.3   account is appropriated to each board that has deposited monies 
 88.4   into the account, in an amount equal to the amount deposited by 
 88.5   the board, to pay for the use of national or regional 
 88.6   standardized tests. 
 88.7      Sec. 94.  Minnesota Statutes 1997 Supplement, section 
 88.8   214.32, subdivision 1, is amended to read: 
 88.9      Subdivision 1.  [MANAGEMENT.] (a) A health professionals 
 88.10  services program committee is established, consisting of one 
 88.11  person appointed by each participating board, with each 
 88.12  participating board having one vote.  The committee shall 
 88.13  designate one board to provide administrative management of the 
 88.14  program, set the program budget and the pro rata share of 
 88.15  program expenses to be borne by each participating board, 
 88.16  provide guidance on the general operation of the program, 
 88.17  including hiring of program personnel, and ensure that the 
 88.18  program's direction is in accord with its authority.  No more 
 88.19  than half plus one of the members of the committee may be of one 
 88.20  gender.  If the participating boards change which board is 
 88.21  designated to provide administrative management of the program, 
 88.22  any appropriation remaining for the program shall transfer to 
 88.23  the newly designated board on the effective date of the change.  
 88.24  The participating boards must inform the appropriate legislative 
 88.25  committees and the commissioner of finance of any change in the 
 88.26  administrative management of the program, and the amount of any 
 88.27  appropriation transferred under this provision. 
 88.28     (b) The designated board, upon recommendation of the health 
 88.29  professional services program committee, shall hire the program 
 88.30  manager and employees and pay expenses of the program from funds 
 88.31  appropriated for that purpose.  The designated board may apply 
 88.32  for grants to pay program expenses and may enter into contracts 
 88.33  on behalf of the program to carry out the purposes of the 
 88.34  program.  The participating boards shall enter into written 
 88.35  agreements with the designated board. 
 88.36     (c) An advisory committee is established to advise the 
 89.1   program committee consisting of: 
 89.2      (1) one member appointed by each of the following:  the 
 89.3   Minnesota Academy of Physician Assistants, the Minnesota Dental 
 89.4   Association, the Minnesota Chiropractic Association, the 
 89.5   Minnesota Licensed Practical Nurse Association, the Minnesota 
 89.6   Medical Association, the Minnesota Nurses Association, and the 
 89.7   Minnesota Podiatric Medicine Association; 
 89.8      (2) one member appointed by each of the professional 
 89.9   associations of the other professions regulated by a 
 89.10  participating board not specified in clause (1); and 
 89.11     (3) two public members, as defined by section 214.02.  
 89.12  Members of the advisory committee shall be appointed for two 
 89.13  years and members may be reappointed.  
 89.14     No more than half plus one of the members of the committee 
 89.15  may be of one gender. 
 89.16     The advisory committee expires June 30, 2001. 
 89.17     Sec. 95.  Minnesota Statutes 1996, section 254A.17, 
 89.18  subdivision 1, is amended to read: 
 89.19     Subdivision 1.  [MATERNAL AND CHILD SERVICE PROGRAMS.] (a) 
 89.20  The commissioner shall fund maternal and child health and social 
 89.21  service programs designed to improve the health and functioning 
 89.22  of children born to mothers using alcohol and controlled 
 89.23  substances.  Comprehensive programs shall include immediate and 
 89.24  ongoing intervention, treatment, and coordination of medical, 
 89.25  educational, and social services through a child's preschool 
 89.26  years.  Programs shall also include research and evaluation to 
 89.27  identify methods most effective in improving outcomes among this 
 89.28  high-risk population.  The commissioner shall ensure that the 
 89.29  programs are available on a statewide basis to the extent 
 89.30  possible with available funds.  
 89.31     (b) The commissioner of human services shall develop models 
 89.32  for the treatment of children ages 6 to 12 who are in need of 
 89.33  chemical dependency treatment.  The commissioner shall fund at 
 89.34  least two pilot projects with qualified providers to provide 
 89.35  nonresidential treatment for children in this age group.  Model 
 89.36  programs must include a component to monitor and evaluate 
 90.1   treatment outcomes. 
 90.2      Sec. 96.  Minnesota Statutes 1996, section 254A.17, is 
 90.3   amended by adding a subdivision to read: 
 90.4      Subd. 1b.  [INTERVENTION AND ADVOCACY PROGRAM.] Within the 
 90.5   limits of money available, the commissioner of human services 
 90.6   shall fund voluntary hospital-based outreach programs targeted 
 90.7   at women who deliver children affected by prenatal alcohol or 
 90.8   drug use.  The program shall help women obtain treatment, stay 
 90.9   in recovery, and plan any future pregnancies.  An advocate shall 
 90.10  be assigned to each woman in the program to provide guidance and 
 90.11  advice with respect to treatment programs, child safety and 
 90.12  parenting, housing, family planning, and any other personal 
 90.13  issues that are barriers to remaining free of chemical 
 90.14  dependence.  The commissioner shall develop an evaluation 
 90.15  component and provide centralized coordination of the evaluation 
 90.16  process. 
 90.17     Sec. 97.  Minnesota Statutes 1996, section 268.92, 
 90.18  subdivision 4, is amended to read: 
 90.19     Subd. 4.  [LEAD CONTRACTORS SUPERVISOR OR CERTIFIED FIRM.] 
 90.20  (a) Eligible organizations and lead contractors supervisors or 
 90.21  certified firms may participate in the swab team program.  An 
 90.22  eligible organization receiving a grant under this section must 
 90.23  assure that all participating lead contractors supervisors or 
 90.24  certified firms are licensed and that all swab team workers are 
 90.25  certified by the department of health under section 144.9505.  
 90.26  Eligible organizations and lead contractors supervisors or 
 90.27  certified firms may distinguish between interior and exterior 
 90.28  services in assigning duties and may participate in the program 
 90.29  by: 
 90.30     (1) providing on-the-job training for swab team workers; 
 90.31     (2) providing swab team services to meet the requirements 
 90.32  of sections 144.9503, subdivision 4, and 144.9504, subdivision 
 90.33  6; 
 90.34     (3) providing a removal and replacement component using 
 90.35  skilled craft workers under subdivision 7; 
 90.36     (4) providing lead testing according to subdivision 7a; 
 91.1      (5) providing lead dust cleaning supplies, as described in 
 91.2   section 144.9503 144.9507, subdivision 5 4, 
 91.3   paragraph (b) (c), to residents; or 
 91.4      (6) having a swab team worker instruct residents and 
 91.5   property owners on appropriate lead control techniques, 
 91.6   including the lead-safe directives developed by the commissioner 
 91.7   of health.  
 91.8      (b) Participating lead contractors supervisors or certified 
 91.9   firms must: 
 91.10     (1) demonstrate proof of workers' compensation and general 
 91.11  liability insurance coverage; 
 91.12     (2) be knowledgeable about lead abatement requirements 
 91.13  established by the Department of Housing and Urban Development 
 91.14  and the Occupational Safety and Health Administration and lead 
 91.15  hazard reduction requirements and lead-safe directives of the 
 91.16  commissioner of health; 
 91.17     (3) demonstrate experience with on-the-job training 
 91.18  programs; 
 91.19     (4) demonstrate an ability to recruit employees from areas 
 91.20  at high risk for toxic lead exposure; and 
 91.21     (5) demonstrate experience in working with low-income 
 91.22  clients. 
 91.23     Sec. 98.  [REPORT BY THE UNIVERSITY OF MINNESOTA ACADEMIC 
 91.24  HEALTH CENTER.] 
 91.25     The University of Minnesota academic health center, after 
 91.26  consultation with the health care community and the medical 
 91.27  education and research costs advisory committee, is requested to 
 91.28  report to the commissioner of health and the legislative 
 91.29  commission on health care access by January 15, 1999, on plans 
 91.30  for the strategic direction and vision of the academic health 
 91.31  center.  The report shall address plans for the ongoing 
 91.32  assessment of health provider workforce needs; plans for the 
 91.33  ongoing assessment of the educational needs of health 
 91.34  professionals and the implications for their education and 
 91.35  training programs; and plans for ongoing, meaningful input from 
 91.36  the health care community on health-related research and 
 92.1   education programs administered by the academic health center. 
 92.2      Sec. 99.  [ADVICE AND RECOMMENDATIONS.] 
 92.3      The commissioners of health and commerce shall convene an 
 92.4   ad hoc advisory panel of selected representatives of health plan 
 92.5   companies, purchasers, and provider groups engaged in the 
 92.6   practice of health care in Minnesota, and interested 
 92.7   legislators.  This advisory panel shall meet and assist the 
 92.8   commissioners in developing measures to prevent discrimination 
 92.9   against providers and provider groups in managed care in 
 92.10  Minnesota and clarify the requirements of Minnesota Statutes, 
 92.11  section 62Q.23, paragraph (c).  Any such measures shall be 
 92.12  reported to the legislature prior to November 15, 1998.  
 92.13     Sec. 100.  [OMBUDSMAN STUDY.] 
 92.14     The ombudsman for mental health and mental retardation and 
 92.15  the ombudsman for older Minnesotans shall convene a work group 
 92.16  to develop recommendations for interagency cooperation and/or 
 92.17  the consolidation of all health-related ombudsman and advocacy 
 92.18  programs provided by state agencies and to address issues to 
 92.19  improve ombudsmen and advocacy services to health care 
 92.20  consumers, including ease of access, timeliness of response, and 
 92.21  quality of outcome.  In developing its recommendations, the work 
 92.22  group shall consider the unique needs of different populations 
 92.23  of health care consumers.  It shall also consider: 
 92.24     (1) seamless access for health care consumers; 
 92.25     (2) consumer outreach methods; 
 92.26     (3) opportunities to share resources and training; 
 92.27     (4) nonduplication of effort; and 
 92.28     (5) the feasibility of colocation.  
 92.29     In developing its recommendations, the work group shall 
 92.30  confer with and have representatives of consumers, advocacy 
 92.31  organizations, the consumer advisory board, the office of health 
 92.32  care consumer assistance, advocacy, and information, affected 
 92.33  state agencies, the board on aging, and the advisory committee 
 92.34  to the ombudsman for mental health and mental retardation.  The 
 92.35  work group shall make recommendations on how to better 
 92.36  coordinate consumer services and submit a report to the 
 93.1   legislature by December 15, 1999. 
 93.2      Sec. 101.  [COMPLAINT PROCESS STUDY.] 
 93.3      The complaint process work group established by the 
 93.4   commissioners of health and commerce as required under Laws 
 93.5   1997, chapter 237, section 20, shall continue to meet to develop 
 93.6   a complaint resolution process for health plan companies to make 
 93.7   available to enrollees as required under Minnesota Statutes, 
 93.8   sections 62Q.105, 62Q.11, and 62Q.30.  The commissioners of 
 93.9   health and commerce shall submit a progress report to the 
 93.10  legislative commission on health care access by September 15, 
 93.11  1998, and shall submit final recommendations to the legislature, 
 93.12  including draft legislation on developing such a process by 
 93.13  November 15, 1998.  The recommendations must also include, in 
 93.14  consultation with the work group, a permanent method of 
 93.15  financing the office of health care consumer assistance, 
 93.16  advocacy, and information. 
 93.17     Sec. 102.  [RESIDENTIAL HOSPICE ADVISORY TASK FORCE.] 
 93.18     The commissioner of health shall convene an advisory task 
 93.19  force to study issues related to the building codes and safety 
 93.20  standards that residential hospice facilities must meet for 
 93.21  licensure and to make recommendations on changes to these 
 93.22  standards.  Task force membership shall include representatives 
 93.23  of residential hospices, pediatric residential hospices, the 
 93.24  Minnesota hospice organization, the Minnesota department of 
 93.25  health, and other interested parties.  The task force is 
 93.26  governed by Minnesota Statutes, section 15.059, subdivision 6.  
 93.27  The task force shall submit recommendations and any draft 
 93.28  legislation to the legislature by January 15, 1999.  
 93.29     Sec. 103.  [TEMPORARY LICENSURE WAIVER FOR DIETITIANS.] 
 93.30     Until October 31, 1998, the board of dietetics and 
 93.31  nutrition practice may waive the requirements for licensure as a 
 93.32  dietitian established in Minnesota Statutes, section 148.624, 
 93.33  subdivision 1, clause (1), and may issue a license to an 
 93.34  applicant who meets the qualifications for licensure specified 
 93.35  in Minnesota Statutes, section 148.627, subdivision 1.  A waiver 
 93.36  may be granted in cases in which unusual or extraordinary 
 94.1   job-related circumstances prevented an applicant from applying 
 94.2   for licensure during the transition period specified in 
 94.3   Minnesota Statutes, section 148.627, subdivision 1.  An 
 94.4   applicant must request a waiver in writing and must explain the 
 94.5   circumstances that prevented the applicant from applying for 
 94.6   licensure during the transition period. 
 94.7      Sec. 104.  [UNITED STATES NUCLEAR REGULATORY COMMISSION 
 94.8   AGREEMENT.] 
 94.9      Subdivision 1.  [AGREEMENT AUTHORIZED.] In order to have a 
 94.10  comprehensive program to protect the public from radiation 
 94.11  hazards, the governor may enter into an agreement with the 
 94.12  United States Nuclear Regulatory Commission, under the Atomic 
 94.13  Energy Act of 1954, United States Code, title 42, section 2021, 
 94.14  paragraph (b).  The agreement may allow the state to assume 
 94.15  regulation over nonpower plant radiation hazards including 
 94.16  certain by-product, source, and special nuclear materials not 
 94.17  sufficient to form a critical mass.  The agreement must be 
 94.18  approved in law prior to being implemented.  
 94.19     Subd. 2.  [HEALTH DEPARTMENT DESIGNATED LEAD.] The 
 94.20  department of health is designated as the lead agency to pursue 
 94.21  an agreement on behalf of the governor, and for any assumption 
 94.22  of specified licensing and regulatory authority from the Nuclear 
 94.23  Regulatory Commission under an agreement.  The commissioner may 
 94.24  enter into negotiations with the Nuclear Regulatory Commission 
 94.25  for that purpose.  The commissioner of health shall establish an 
 94.26  advisory group to assist in preparing the state to meet the 
 94.27  requirements for achieving an agreement. 
 94.28     Subd. 3.  [RULES.] The commissioner of health may adopt 
 94.29  rules for the state assumption of regulation under an agreement 
 94.30  under this section, including the licensing and regulation of 
 94.31  by-product, source, and special nuclear material not sufficient 
 94.32  to form a critical mass. 
 94.33     Subd. 4.  [TRANSITION.] A person who, on the effective date 
 94.34  of an agreement under this section, possesses a Nuclear 
 94.35  Regulatory Commission license that is subject to the agreement 
 94.36  shall be deemed to possess a similar license issued by the 
 95.1   department of health.  Licenses shall expire on the expiration 
 95.2   date specified in the federal license. 
 95.3      Subd. 5.  [SUNSET.] An agreement entered into before August 
 95.4   2, 2002, shall remain in effect until terminated or suspended 
 95.5   under the Atomic Energy Act of 1954, United States Code, title 
 95.6   42, section 2021, paragraph (j).  The governor may not enter 
 95.7   into an initial agreement with the Nuclear Regulatory Commission 
 95.8   after August 1, 2002.  If an agreement is not entered into, any 
 95.9   rules adopted under this section are repealed on that date. 
 95.10     Sec. 105.  [STUDY OF EXTENT OF FETAL ALCOHOL SYNDROME.] 
 95.11     The commissioner of health shall conduct a study of the 
 95.12  incidence and prevalence of fetal alcohol syndrome in Minnesota. 
 95.13  The commissioner shall not collect individually identifiable 
 95.14  data for this study. 
 95.15     Sec. 106.  [MEDICAL EDUCATION AND RESEARCH TRUST FUND 
 95.16  STUDY.] 
 95.17     The commissioner of health shall review the current medical 
 95.18  education and research costs advisory committee structure and 
 95.19  composition and recommend methods to ensure balanced and 
 95.20  appropriate representation of major training programs.  The 
 95.21  commissioner shall also review the statutory formula for the 
 95.22  prepaid medical assistance carve out to determine if any 
 95.23  adjustments should be made to correct existing or potential 
 95.24  inequities on current training programs.  The commissioner shall 
 95.25  determine if there should be other criteria for weighting future 
 95.26  distributions of medical education and research funds beyond the 
 95.27  current statutory criteria, including the criteria that trainees 
 95.28  continue to practice in Minnesota.  The commissioner shall 
 95.29  report the findings and recommendations to the legislative 
 95.30  commission on health care access by December 15, 1998. 
 95.31     Sec. 107.  [FUNDING FOR IMMUNIZATIONS.] 
 95.32     The commissioner of health, in consultation with the 
 95.33  commissioner of children, families, and learning, 
 95.34  representatives of school nurses, and other interested parties, 
 95.35  shall develop recommendations on how to provide ongoing funding 
 95.36  for school districts to implement the provisions of Minnesota 
 96.1   Statutes, section 123.70.  These recommendations shall specify 
 96.2   any statutory changes needed for their implementation.  The 
 96.3   commissioners of health and of children, families, and learning 
 96.4   shall consider the recommendations in developing their budget 
 96.5   requests for the 2000-2001 biennial budget.  The recommendations 
 96.6   and any draft legislation needed to implement the 
 96.7   recommendations shall be submitted to the chairs of the senate 
 96.8   health and family security budget division, the house health and 
 96.9   human services finance division, the senate K-12 education 
 96.10  budget division, and the house K-12 education finance division 
 96.11  by December 15, 1998. 
 96.12     Sec. 108.  [BOARD OF REHABILITATION THERAPY.] 
 96.13     The commissioner of health shall convene a work group to 
 96.14  study the feasibility and need of creating a separate board of 
 96.15  rehabilitation therapy to regulate rehabilitation therapy 
 96.16  occupations, including physical therapists, occupational 
 96.17  therapists, speech-language pathologists, audiologists, and 
 96.18  hearing instrument dispensers.  The work group shall consist of 
 96.19  members representing physical therapists, occupational 
 96.20  therapists, speech-language pathologists, audiologists, hearing 
 96.21  instrument dispensers, and any other related occupation group 
 96.22  that the commissioner determines should be included.  The 
 96.23  commissioner, in consultation with the work group, shall submit 
 96.24  to the legislature by January 15, 1999, recommendations on 
 96.25  establishing a board of rehabilitation therapy and on the 
 96.26  appropriate occupational groups to be regulated by this board. 
 96.27     Sec. 109.  [REPEALER.] 
 96.28     Minnesota Statutes 1996, sections 62J.685; 144.491; 
 96.29  144.9501, subdivisions 12, 14, and 16; and 144.9503, 
 96.30  subdivisions 5, 8, and 9; and 157.15, subdivision 15, are 
 96.31  repealed. 
 96.32     Sec. 110.  [EFFECTIVE DATES.] 
 96.33     (a) Sections 2, 8, 20, 22, 34 to 80, 93, 94, and 97 to 108 
 96.34  are effective the day following final enactment. 
 96.35     (b) Sections 9 to 13, 21, and 81 are effective January 1, 
 96.36  1999. 
 97.1                              ARTICLE 3 
 97.2                            LONG-TERM CARE 
 97.3      Section 1.  Minnesota Statutes 1996, section 144A.04, 
 97.4   subdivision 5, is amended to read: 
 97.5      Subd. 5.  [ADMINISTRATORS.] Except as otherwise provided by 
 97.6   this subdivision, a nursing home must have a full time licensed 
 97.7   nursing home administrator serving the facility.  In any nursing 
 97.8   home of less than 25 31 beds, the director of nursing services 
 97.9   may also serve as the licensed nursing home administrator.  Two 
 97.10  nursing homes under common ownership having a total of 150 beds 
 97.11  or less and located within 75 miles of each other may share the 
 97.12  services of a licensed administrator if the administrator 
 97.13  divides full-time work week between the two facilities in 
 97.14  proportion to the number of beds in each facility.  Every 
 97.15  nursing home shall have a person-in-charge on the premises at 
 97.16  all times in the absence of the licensed administrator.  The 
 97.17  name of the person in charge must be posted in a conspicuous 
 97.18  place in the facility.  The commissioner of health shall by rule 
 97.19  promulgate minimum education and experience requirements for 
 97.20  persons-in-charge, and may promulgate rules specifying the times 
 97.21  of day during which a licensed administrator must be on the 
 97.22  nursing home's premises.  In the absence of rules adopted by the 
 97.23  commissioner governing the division of an administrator's time 
 97.24  between two nursing homes, the administrator shall designate and 
 97.25  post the times the administrator will be on site in each home on 
 97.26  a regular basis.  A nursing home may employ as its administrator 
 97.27  the administrator of a hospital licensed pursuant to sections 
 97.28  144.50 to 144.56 if the individual is licensed as a nursing home 
 97.29  administrator pursuant to section 144A.20 and the nursing home 
 97.30  and hospital have a combined total of 150 beds or less and are 
 97.31  located within one mile of each other.  A nonproprietary 
 97.32  retirement home having fewer than 15 licensed nursing home beds 
 97.33  may share the services of a licensed administrator with a 
 97.34  nonproprietary nursing home, having fewer than 150 licensed 
 97.35  nursing home beds, that is located within 25 miles of the 
 97.36  retirement home.  A nursing home which is located in a facility 
 98.1   licensed as a hospital pursuant to sections 144.50 to 144.56, 
 98.2   may employ as its administrator the administrator of the 
 98.3   hospital if the individual meets minimum education and long term 
 98.4   care experience criteria set by rule of the commissioner of 
 98.5   health. 
 98.6      Sec. 2.  Minnesota Statutes 1997 Supplement, section 
 98.7   144A.071, subdivision 4a, is amended to read: 
 98.8      Subd. 4a.  [EXCEPTIONS FOR REPLACEMENT BEDS.] It is in the 
 98.9   best interest of the state to ensure that nursing homes and 
 98.10  boarding care homes continue to meet the physical plant 
 98.11  licensing and certification requirements by permitting certain 
 98.12  construction projects.  Facilities should be maintained in 
 98.13  condition to satisfy the physical and emotional needs of 
 98.14  residents while allowing the state to maintain control over 
 98.15  nursing home expenditure growth. 
 98.16     The commissioner of health in coordination with the 
 98.17  commissioner of human services, may approve the renovation, 
 98.18  replacement, upgrading, or relocation of a nursing home or 
 98.19  boarding care home, under the following conditions: 
 98.20     (a) to license or certify beds in a new facility 
 98.21  constructed to replace a facility or to make repairs in an 
 98.22  existing facility that was destroyed or damaged after June 30, 
 98.23  1987, by fire, lightning, or other hazard provided:  
 98.24     (i) destruction was not caused by the intentional act of or 
 98.25  at the direction of a controlling person of the facility; 
 98.26     (ii) at the time the facility was destroyed or damaged the 
 98.27  controlling persons of the facility maintained insurance 
 98.28  coverage for the type of hazard that occurred in an amount that 
 98.29  a reasonable person would conclude was adequate; 
 98.30     (iii) the net proceeds from an insurance settlement for the 
 98.31  damages caused by the hazard are applied to the cost of the new 
 98.32  facility or repairs; 
 98.33     (iv) the new facility is constructed on the same site as 
 98.34  the destroyed facility or on another site subject to the 
 98.35  restrictions in section 144A.073, subdivision 5; 
 98.36     (v) the number of licensed and certified beds in the new 
 99.1   facility does not exceed the number of licensed and certified 
 99.2   beds in the destroyed facility; and 
 99.3      (vi) the commissioner determines that the replacement beds 
 99.4   are needed to prevent an inadequate supply of beds. 
 99.5   Project construction costs incurred for repairs authorized under 
 99.6   this clause shall not be considered in the dollar threshold 
 99.7   amount defined in subdivision 2; 
 99.8      (b) to license or certify beds that are moved from one 
 99.9   location to another within a nursing home facility, provided the 
 99.10  total costs of remodeling performed in conjunction with the 
 99.11  relocation of beds does not exceed $750,000; 
 99.12     (c) to license or certify beds in a project recommended for 
 99.13  approval under section 144A.073; 
 99.14     (d) to license or certify beds that are moved from an 
 99.15  existing state nursing home to a different state facility, 
 99.16  provided there is no net increase in the number of state nursing 
 99.17  home beds; 
 99.18     (e) to certify and license as nursing home beds boarding 
 99.19  care beds in a certified boarding care facility if the beds meet 
 99.20  the standards for nursing home licensure, or in a facility that 
 99.21  was granted an exception to the moratorium under section 
 99.22  144A.073, and if the cost of any remodeling of the facility does 
 99.23  not exceed $750,000.  If boarding care beds are licensed as 
 99.24  nursing home beds, the number of boarding care beds in the 
 99.25  facility must not increase beyond the number remaining at the 
 99.26  time of the upgrade in licensure.  The provisions contained in 
 99.27  section 144A.073 regarding the upgrading of the facilities do 
 99.28  not apply to facilities that satisfy these requirements; 
 99.29     (f) to license and certify up to 40 beds transferred from 
 99.30  an existing facility owned and operated by the Amherst H. Wilder 
 99.31  Foundation in the city of St. Paul to a new unit at the same 
 99.32  location as the existing facility that will serve persons with 
 99.33  Alzheimer's disease and other related disorders.  The transfer 
 99.34  of beds may occur gradually or in stages, provided the total 
 99.35  number of beds transferred does not exceed 40.  At the time of 
 99.36  licensure and certification of a bed or beds in the new unit, 
100.1   the commissioner of health shall delicense and decertify the 
100.2   same number of beds in the existing facility.  As a condition of 
100.3   receiving a license or certification under this clause, the 
100.4   facility must make a written commitment to the commissioner of 
100.5   human services that it will not seek to receive an increase in 
100.6   its property-related payment rate as a result of the transfers 
100.7   allowed under this paragraph; 
100.8      (g) to license and certify nursing home beds to replace 
100.9   currently licensed and certified boarding care beds which may be 
100.10  located either in a remodeled or renovated boarding care or 
100.11  nursing home facility or in a remodeled, renovated, newly 
100.12  constructed, or replacement nursing home facility within the 
100.13  identifiable complex of health care facilities in which the 
100.14  currently licensed boarding care beds are presently located, 
100.15  provided that the number of boarding care beds in the facility 
100.16  or complex are decreased by the number to be licensed as nursing 
100.17  home beds and further provided that, if the total costs of new 
100.18  construction, replacement, remodeling, or renovation exceed ten 
100.19  percent of the appraised value of the facility or $200,000, 
100.20  whichever is less, the facility makes a written commitment to 
100.21  the commissioner of human services that it will not seek to 
100.22  receive an increase in its property-related payment rate by 
100.23  reason of the new construction, replacement, remodeling, or 
100.24  renovation.  The provisions contained in section 144A.073 
100.25  regarding the upgrading of facilities do not apply to facilities 
100.26  that satisfy these requirements; 
100.27     (h) to license as a nursing home and certify as a nursing 
100.28  facility a facility that is licensed as a boarding care facility 
100.29  but not certified under the medical assistance program, but only 
100.30  if the commissioner of human services certifies to the 
100.31  commissioner of health that licensing the facility as a nursing 
100.32  home and certifying the facility as a nursing facility will 
100.33  result in a net annual savings to the state general fund of 
100.34  $200,000 or more; 
100.35     (i) to certify, after September 30, 1992, and prior to July 
100.36  1, 1993, existing nursing home beds in a facility that was 
101.1   licensed and in operation prior to January 1, 1992; 
101.2      (j) to license and certify new nursing home beds to replace 
101.3   beds in a facility condemned acquired by the Minneapolis 
101.4   community development agency as part of an economic 
101.5   redevelopment plan activities in a city of the first class, 
101.6   provided the new facility is located within one mile three miles 
101.7   of the site of the old facility.  Operating and property costs 
101.8   for the new facility must be determined and allowed 
101.9   under existing reimbursement rules section 256B.431 or 256B.434; 
101.10     (k) to license and certify up to 20 new nursing home beds 
101.11  in a community-operated hospital and attached convalescent and 
101.12  nursing care facility with 40 beds on April 21, 1991, that 
101.13  suspended operation of the hospital in April 1986.  The 
101.14  commissioner of human services shall provide the facility with 
101.15  the same per diem property-related payment rate for each 
101.16  additional licensed and certified bed as it will receive for its 
101.17  existing 40 beds; 
101.18     (l) to license or certify beds in renovation, replacement, 
101.19  or upgrading projects as defined in section 144A.073, 
101.20  subdivision 1, so long as the cumulative total costs of the 
101.21  facility's remodeling projects do not exceed $750,000; 
101.22     (m) to license and certify beds that are moved from one 
101.23  location to another for the purposes of converting up to five 
101.24  four-bed wards to single or double occupancy rooms in a nursing 
101.25  home that, as of January 1, 1993, was county-owned and had a 
101.26  licensed capacity of 115 beds; 
101.27     (n) to allow a facility that on April 16, 1993, was a 
101.28  106-bed licensed and certified nursing facility located in 
101.29  Minneapolis to layaway all of its licensed and certified nursing 
101.30  home beds.  These beds may be relicensed and recertified in a 
101.31  newly-constructed teaching nursing home facility affiliated with 
101.32  a teaching hospital upon approval by the legislature.  The 
101.33  proposal must be developed in consultation with the interagency 
101.34  committee on long-term care planning.  The beds on layaway 
101.35  status shall have the same status as voluntarily delicensed and 
101.36  decertified beds, except that beds on layaway status remain 
102.1   subject to the surcharge in section 256.9657.  This layaway 
102.2   provision expires July 1, 1998; 
102.3      (o) to allow a project which will be completed in 
102.4   conjunction with an approved moratorium exception project for a 
102.5   nursing home in southern Cass county and which is directly 
102.6   related to that portion of the facility that must be repaired, 
102.7   renovated, or replaced, to correct an emergency plumbing problem 
102.8   for which a state correction order has been issued and which 
102.9   must be corrected by August 31, 1993; 
102.10     (p) to allow a facility that on April 16, 1993, was a 
102.11  368-bed licensed and certified nursing facility located in 
102.12  Minneapolis to layaway, upon 30 days prior written notice to the 
102.13  commissioner, up to 30 of the facility's licensed and certified 
102.14  beds by converting three-bed wards to single or double 
102.15  occupancy.  Beds on layaway status shall have the same status as 
102.16  voluntarily delicensed and decertified beds except that beds on 
102.17  layaway status remain subject to the surcharge in section 
102.18  256.9657, remain subject to the license application and renewal 
102.19  fees under section 144A.07 and shall be subject to a $100 per 
102.20  bed reactivation fee.  In addition, at any time within three 
102.21  years of the effective date of the layaway, the beds on layaway 
102.22  status may be: 
102.23     (1) relicensed and recertified upon relocation and 
102.24  reactivation of some or all of the beds to an existing licensed 
102.25  and certified facility or facilities located in Pine River, 
102.26  Brainerd, or International Falls; provided that the total 
102.27  project construction costs related to the relocation of beds 
102.28  from layaway status for any facility receiving relocated beds 
102.29  may not exceed the dollar threshold provided in subdivision 2 
102.30  unless the construction project has been approved through the 
102.31  moratorium exception process under section 144A.073; 
102.32     (2) relicensed and recertified, upon reactivation of some 
102.33  or all of the beds within the facility which placed the beds in 
102.34  layaway status, if the commissioner has determined a need for 
102.35  the reactivation of the beds on layaway status. 
102.36     The property-related payment rate of a facility placing 
103.1   beds on layaway status must be adjusted by the incremental 
103.2   change in its rental per diem after recalculating the rental per 
103.3   diem as provided in section 256B.431, subdivision 3a, paragraph 
103.4   (d).  The property-related payment rate for a facility 
103.5   relicensing and recertifying beds from layaway status must be 
103.6   adjusted by the incremental change in its rental per diem after 
103.7   recalculating its rental per diem using the number of beds after 
103.8   the relicensing to establish the facility's capacity day 
103.9   divisor, which shall be effective the first day of the month 
103.10  following the month in which the relicensing and recertification 
103.11  became effective.  Any beds remaining on layaway status more 
103.12  than three years after the date the layaway status became 
103.13  effective must be removed from layaway status and immediately 
103.14  delicensed and decertified; 
103.15     (q) to license and certify beds in a renovation and 
103.16  remodeling project to convert 12 four-bed wards into 24 two-bed 
103.17  rooms, expand space, and add improvements in a nursing home 
103.18  that, as of January 1, 1994, met the following conditions:  the 
103.19  nursing home was located in Ramsey county; had a licensed 
103.20  capacity of 154 beds; and had been ranked among the top 15 
103.21  applicants by the 1993 moratorium exceptions advisory review 
103.22  panel.  The total project construction cost estimate for this 
103.23  project must not exceed the cost estimate submitted in 
103.24  connection with the 1993 moratorium exception process; 
103.25     (r) to license and certify up to 117 beds that are 
103.26  relocated from a licensed and certified 138-bed nursing facility 
103.27  located in St. Paul to a hospital with 130 licensed hospital 
103.28  beds located in South St. Paul, provided that the nursing 
103.29  facility and hospital are owned by the same or a related 
103.30  organization and that prior to the date the relocation is 
103.31  completed the hospital ceases operation of its inpatient 
103.32  hospital services at that hospital.  After relocation, the 
103.33  nursing facility's status under section 256B.431, subdivision 
103.34  2j, shall be the same as it was prior to relocation.  The 
103.35  nursing facility's property-related payment rate resulting from 
103.36  the project authorized in this paragraph shall become effective 
104.1   no earlier than April 1, 1996.  For purposes of calculating the 
104.2   incremental change in the facility's rental per diem resulting 
104.3   from this project, the allowable appraised value of the nursing 
104.4   facility portion of the existing health care facility physical 
104.5   plant prior to the renovation and relocation may not exceed 
104.6   $2,490,000; 
104.7      (s) to license and certify two beds in a facility to 
104.8   replace beds that were voluntarily delicensed and decertified on 
104.9   June 28, 1991; 
104.10     (t) to allow 16 licensed and certified beds located on July 
104.11  1, 1994, in a 142-bed nursing home and 21-bed boarding care home 
104.12  facility in Minneapolis, notwithstanding the licensure and 
104.13  certification after July 1, 1995, of the Minneapolis facility as 
104.14  a 147-bed nursing home facility after completion of a 
104.15  construction project approved in 1993 under section 144A.073, to 
104.16  be laid away upon 30 days' prior written notice to the 
104.17  commissioner.  Beds on layaway status shall have the same status 
104.18  as voluntarily delicensed or decertified beds except that they 
104.19  shall remain subject to the surcharge in section 256.9657.  The 
104.20  16 beds on layaway status may be relicensed as nursing home beds 
104.21  and recertified at any time within five years of the effective 
104.22  date of the layaway upon relocation of some or all of the beds 
104.23  to a licensed and certified facility located in Watertown, 
104.24  provided that the total project construction costs related to 
104.25  the relocation of beds from layaway status for the Watertown 
104.26  facility may not exceed the dollar threshold provided in 
104.27  subdivision 2 unless the construction project has been approved 
104.28  through the moratorium exception process under section 144A.073. 
104.29     The property-related payment rate of the facility placing 
104.30  beds on layaway status must be adjusted by the incremental 
104.31  change in its rental per diem after recalculating the rental per 
104.32  diem as provided in section 256B.431, subdivision 3a, paragraph 
104.33  (d).  The property-related payment rate for the facility 
104.34  relicensing and recertifying beds from layaway status must be 
104.35  adjusted by the incremental change in its rental per diem after 
104.36  recalculating its rental per diem using the number of beds after 
105.1   the relicensing to establish the facility's capacity day 
105.2   divisor, which shall be effective the first day of the month 
105.3   following the month in which the relicensing and recertification 
105.4   became effective.  Any beds remaining on layaway status more 
105.5   than five years after the date the layaway status became 
105.6   effective must be removed from layaway status and immediately 
105.7   delicensed and decertified; 
105.8      (u) to license and certify beds that are moved within an 
105.9   existing area of a facility or to a newly constructed addition 
105.10  which is built for the purpose of eliminating three- and 
105.11  four-bed rooms and adding space for dining, lounge areas, 
105.12  bathing rooms, and ancillary service areas in a nursing home 
105.13  that, as of January 1, 1995, was located in Fridley and had a 
105.14  licensed capacity of 129 beds; 
105.15     (v) to relocate 36 beds in Crow Wing county and four beds 
105.16  from Hennepin county to a 160-bed facility in Crow Wing county, 
105.17  provided all the affected beds are under common ownership; 
105.18     (w) to license and certify a total replacement project of 
105.19  up to 49 beds located in Norman county that are relocated from a 
105.20  nursing home destroyed by flood and whose residents were 
105.21  relocated to other nursing homes.  The operating cost payment 
105.22  rates for the new nursing facility shall be determined based on 
105.23  the interim and settle-up payment provisions of Minnesota Rules, 
105.24  part 9549.0057, and the reimbursement provisions of section 
105.25  256B.431, except that subdivision 26, paragraphs (a) and (b), 
105.26  shall not apply until the second rate year after the settle-up 
105.27  cost report is filed.  Property-related reimbursement rates 
105.28  shall be determined under section 256B.431, taking into account 
105.29  any federal or state flood-related loans or grants provided to 
105.30  the facility; 
105.31     (x) to license and certify a total replacement project of 
105.32  up to 129 beds located in Polk county that are relocated from a 
105.33  nursing home destroyed by flood and whose residents were 
105.34  relocated to other nursing homes.  The operating cost payment 
105.35  rates for the new nursing facility shall be determined based on 
105.36  the interim and settle-up payment provisions of Minnesota Rules, 
106.1   part 9549.0057, and the reimbursement provisions of section 
106.2   256B.431, except that subdivision 26, paragraphs (a) and (b), 
106.3   shall not apply until the second rate year after the settle-up 
106.4   cost report is filed.  Property-related reimbursement rates 
106.5   shall be determined under section 256B.431, taking into account 
106.6   any federal or state flood-related loans or grants provided to 
106.7   the facility; or 
106.8      (y) to license and certify beds in a renovation and 
106.9   remodeling project to convert 13 three-bed wards into 13 two-bed 
106.10  rooms and 13 single-bed rooms, expand space, and add 
106.11  improvements in a nursing home that, as of January 1, 1994, met 
106.12  the following conditions:  the nursing home was located in 
106.13  Ramsey county, was not owned by a hospital corporation, had a 
106.14  licensed capacity of 64 beds, and had been ranked among the top 
106.15  15 applicants by the 1993 moratorium exceptions advisory review 
106.16  panel.  The total project construction cost estimate for this 
106.17  project must not exceed the cost estimate submitted in 
106.18  connection with the 1993 moratorium exception process.; 
106.19     (z) to license and certify up to 150 nursing home beds to 
106.20  replace an existing 285 bed nursing facility located in St. 
106.21  Paul.  The replacement project shall include both the renovation 
106.22  of existing buildings and the construction of new facilities at 
106.23  the existing site.  The reduction in the licensed capacity of 
106.24  the existing facility shall occur during the construction 
106.25  project as beds are taken out of service due to the construction 
106.26  process.  Prior to the start of the construction process, the 
106.27  facility shall provide written information to the commissioner 
106.28  of health describing the process for bed reduction, plans for 
106.29  the relocation of residents, and the estimated construction 
106.30  schedule.  The relocation of residents shall be in accordance 
106.31  with the provisions of law and rule; or 
106.32     (aa) to allow the commissioner of human services to license 
106.33  an additional 36 beds to provide residential services for the 
106.34  physically handicapped under Minnesota Rules, parts 9570.2000 to 
106.35  9570.3400, in a 198-bed nursing home located in Red Wing, 
106.36  provided that the total number of licensed and certified beds at 
107.1   the facility does not increase.  
107.2      Sec. 3.  Minnesota Statutes 1996, section 144A.09, 
107.3   subdivision 1, is amended to read: 
107.4      Subdivision 1.  [SPIRITUAL MEANS FOR HEALING.] No rule 
107.5   established Sections 144A.04, subdivision 5, and 144A.18 to 
107.6   144A.27, and rules adopted under sections 144A.01 to 144A.16 
107.7   other than a rule relating to sanitation and safety of premises, 
107.8   to cleanliness of operation, or to physical equipment shall do 
107.9   not apply to a nursing home conducted by and for the adherents 
107.10  of any recognized church or religious denomination for the 
107.11  purpose of providing care and treatment for those who select and 
107.12  depend upon spiritual means through prayer alone, in lieu of 
107.13  medical care, for healing.  
107.14     Sec. 4.  Minnesota Statutes 1996, section 256B.431, 
107.15  subdivision 2i, is amended to read: 
107.16     Subd. 2i.  [OPERATING COSTS AFTER JULY 1, 1988.] (a)  
107.17  [OTHER OPERATING COST LIMITS.] For the rate year beginning July 
107.18  1, 1988, the commissioner shall increase the other operating 
107.19  cost limits established in Minnesota Rules, part 9549.0055, 
107.20  subpart 2, item E, to 110 percent of the median of the array of 
107.21  allowable historical other operating cost per diems and index 
107.22  these limits as in Minnesota Rules, part 9549.0056, subparts 3 
107.23  and 4.  The limits must be established in accordance with 
107.24  subdivision 2b, paragraph (d).  For rate years beginning on or 
107.25  after July 1, 1989, the adjusted other operating cost limits 
107.26  must be indexed as in Minnesota Rules, part 9549.0056, subparts 
107.27  3 and 4.  For the rate period beginning October 1, 1992, and for 
107.28  rate years beginning after June 30, 1993, the amount of the 
107.29  surcharge under section 256.9657, subdivision 1, shall be 
107.30  included in the plant operations and maintenance operating cost 
107.31  category.  The surcharge shall be an allowable cost for the 
107.32  purpose of establishing the payment rate. 
107.33     (b)  [CARE-RELATED OPERATING COST LIMITS.] For the rate 
107.34  year beginning July 1, 1988, the commissioner shall increase the 
107.35  care-related operating cost limits established in Minnesota 
107.36  Rules, part 9549.0055, subpart 2, items A and B, to 125 percent 
108.1   of the median of the array of the allowable historical case mix 
108.2   operating cost standardized per diems and the allowable 
108.3   historical other care-related operating cost per diems and index 
108.4   those limits as in Minnesota Rules, part 9549.0056, subparts 1 
108.5   and 2.  The limits must be established in accordance with 
108.6   subdivision 2b, paragraph (d).  For rate years beginning on or 
108.7   after July 1, 1989, the adjusted care-related limits must be 
108.8   indexed as in Minnesota Rules, part 9549.0056, subparts 1 and 2. 
108.9      (c)  [SALARY ADJUSTMENT PER DIEM.] For the rate period 
108.10  Effective October July 1, 1988 1998, to June 30, 1990 
108.11  2000, the commissioner shall add the appropriate make available 
108.12  the salary adjustment per diem calculated in clause (1) or (2) 
108.13  to the total operating cost payment rate of each nursing 
108.14  facility reimbursed under this section or section 256B.434.  The 
108.15  salary adjustment per diem for each nursing facility must be 
108.16  determined as follows:  
108.17     (1) For each nursing facility that reports salaries for 
108.18  registered nurses, licensed practical nurses, and aides, 
108.19  orderlies and attendants separately, the commissioner shall 
108.20  determine the salary adjustment per diem by multiplying the 
108.21  total salaries, payroll taxes, and fringe benefits allowed in 
108.22  each operating cost category, except management fees and 
108.23  administrator and central office salaries and the related 
108.24  payroll taxes and fringe benefits, by 3.5 3.0 percent and then 
108.25  dividing the resulting amount by the nursing facility's actual 
108.26  resident days; and. 
108.27     (2) For each nursing facility that does not report salaries 
108.28  for registered nurses, licensed practical nurses, aides, 
108.29  orderlies, and attendants separately, the salary adjustment per 
108.30  diem is the weighted average salary adjustment per diem increase 
108.31  determined under clause (1).  
108.32     Each nursing facility that receives a salary adjustment per 
108.33  diem pursuant to this subdivision shall adjust nursing facility 
108.34  employee salaries by a minimum of the amount determined in 
108.35  clause (1) or (2).  The commissioner shall review allowable 
108.36  salary costs, including payroll taxes and fringe benefits, for 
109.1   the reporting year ending September 30, 1989, to determine 
109.2   whether or not each nursing facility complied with this 
109.3   requirement.  The commissioner shall report the extent to which 
109.4   each nursing facility complied with the legislative commission 
109.5   on long-term care by August 1, 1990.  
109.6      (3) A nursing facility may apply for the salary adjustment 
109.7   per diem calculated under clauses (1) and (2).  The application 
109.8   must be made to the commissioner and contain a plan by which the 
109.9   nursing facility will distribute the salary adjustment to 
109.10  employees of the nursing facility.  In order to apply for a 
109.11  salary adjustment, a nursing facility reimbursed under section 
109.12  256B.434, must report the information required by clause (1) or 
109.13  (2) in the application, in the manner specified by the 
109.14  commissioner.  For nursing facilities in which the employees are 
109.15  represented by an exclusive bargaining representative, an 
109.16  agreement negotiated and agreed to by the employer and the 
109.17  exclusive bargaining representative, after July 1, 1998, may 
109.18  constitute the plan for the salary distribution.  The 
109.19  commissioner shall review the plan to ensure that the salary 
109.20  adjustment per diem is used solely to increase the compensation 
109.21  of nursing home facility employees.  To be eligible, a facility 
109.22  must submit its plan for the salary distribution by December 31, 
109.23  1998.  If a facility's plan for salary distribution is effective 
109.24  for its employees after July 1, 1998, the salary adjustment cost 
109.25  per diem shall be effective the same date as its plan. 
109.26     (4) Additional costs incurred by nursing facilities as a 
109.27  result of this salary adjustment are not allowable costs for 
109.28  purposes of the September 30, 1998, cost report. 
109.29     (d)  [NEW BASE YEAR.] The commissioner shall establish new 
109.30  base years for both the reporting year ending September 30, 
109.31  1989, and the reporting year ending September 30, 1990.  In 
109.32  establishing new base years, the commissioner must take into 
109.33  account:  
109.34     (1) statutory changes made in geographic groups; 
109.35     (2) redefinitions of cost categories; and 
109.36     (3) reclassification, pass-through, or exemption of certain 
110.1   costs such as public employee retirement act contributions. 
110.2      (e)  [NEW BASE YEAR.] The commissioner shall establish a 
110.3   new base year for the reporting years ending September 30, 1991, 
110.4   and September 30, 1992.  In establishing a new base year, the 
110.5   commissioner must take into account:  
110.6      (1) statutory changes made in geographic groups; 
110.7      (2) redefinitions of cost categories; and 
110.8      (3) reclassification, pass-through, or exemption of certain 
110.9   costs. 
110.10     Sec. 5.  Minnesota Statutes 1996, section 256B.431, is 
110.11  amended by adding a subdivision to read: 
110.12     Subd. 2s.  [NONALLOWABLE COST.] Costs incurred for any 
110.13  activities which are directed at or are intended to influence or 
110.14  dissuade employees in the exercise of their legal rights to 
110.15  freely engage in the process of selecting an exclusive 
110.16  representative for the purpose of collective bargaining with 
110.17  their employer shall not be allowable for purposes of setting 
110.18  payment rates. 
110.19     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
110.20  256B.431, subdivision 3f, is amended to read: 
110.21     Subd. 3f.  [PROPERTY COSTS AFTER JULY 1, 1988.] (a)  
110.22  [INVESTMENT PER BED LIMIT.] For the rate year beginning July 1, 
110.23  1988, the replacement-cost-new per bed limit must be $32,571 per 
110.24  licensed bed in multiple bedrooms and $48,857 per licensed bed 
110.25  in a single bedroom.  For the rate year beginning July 1, 1989, 
110.26  the replacement-cost-new per bed limit for a single bedroom must 
110.27  be $49,907 adjusted according to Minnesota Rules, part 
110.28  9549.0060, subpart 4, item A, subitem (1).  Beginning January 1, 
110.29  1990, the replacement-cost-new per bed limits must be adjusted 
110.30  annually as specified in Minnesota Rules, part 9549.0060, 
110.31  subpart 4, item A, subitem (1).  Beginning January 1, 1991, the 
110.32  replacement-cost-new per bed limits will be adjusted annually as 
110.33  specified in Minnesota Rules, part 9549.0060, subpart 4, item A, 
110.34  subitem (1), except that the index utilized will be the Bureau 
110.35  of the Census:  Composite fixed-weighted price index as 
110.36  published in the C30 Report, Value of New Construction Put in 
111.1   Place. 
111.2      (b)  [RENTAL FACTOR.] For the rate year beginning July 1, 
111.3   1988, the commissioner shall increase the rental factor as 
111.4   established in Minnesota Rules, part 9549.0060, subpart 8, item 
111.5   A, by 6.2 percent rounded to the nearest 100th percent for the 
111.6   purpose of reimbursing nursing facilities for soft costs and 
111.7   entrepreneurial profits not included in the cost valuation 
111.8   services used by the state's contracted appraisers.  For rate 
111.9   years beginning on or after July 1, 1989, the rental factor is 
111.10  the amount determined under this paragraph for the rate year 
111.11  beginning July 1, 1988. 
111.12     (c)  [OCCUPANCY FACTOR.] For rate years beginning on or 
111.13  after July 1, 1988, in order to determine property-related 
111.14  payment rates under Minnesota Rules, part 9549.0060, for all 
111.15  nursing facilities except those whose average length of stay in 
111.16  a skilled level of care within a nursing facility is 180 days or 
111.17  less, the commissioner shall use 95 percent of capacity days.  
111.18  For a nursing facility whose average length of stay in a skilled 
111.19  level of care within a nursing facility is 180 days or less, the 
111.20  commissioner shall use the greater of resident days or 80 
111.21  percent of capacity days but in no event shall the divisor 
111.22  exceed 95 percent of capacity days. 
111.23     (d)  [EQUIPMENT ALLOWANCE.] For rate years beginning on 
111.24  July 1, 1988, and July 1, 1989, the commissioner shall add ten 
111.25  cents per resident per day to each nursing facility's 
111.26  property-related payment rate.  The ten-cent property-related 
111.27  payment rate increase is not cumulative from rate year to rate 
111.28  year.  For the rate year beginning July 1, 1990, the 
111.29  commissioner shall increase each nursing facility's equipment 
111.30  allowance as established in Minnesota Rules, part 9549.0060, 
111.31  subpart 10, by ten cents per resident per day.  For rate years 
111.32  beginning on or after July 1, 1991, the adjusted equipment 
111.33  allowance must be adjusted annually for inflation as in 
111.34  Minnesota Rules, part 9549.0060, subpart 10, item E.  For the 
111.35  rate period beginning October 1, 1992, the equipment allowance 
111.36  for each nursing facility shall be increased by 28 percent.  For 
112.1   rate years beginning after June 30, 1993, the allowance must be 
112.2   adjusted annually for inflation. 
112.3      (e)  [POST CHAPTER 199 RELATED-ORGANIZATION DEBTS AND 
112.4   INTEREST EXPENSE.] For rate years beginning on or after July 1, 
112.5   1990, Minnesota Rules, part 9549.0060, subpart 5, item E, shall 
112.6   not apply to outstanding related organization debt incurred 
112.7   prior to May 23, 1983, provided that the debt was an allowable 
112.8   debt under Minnesota Rules, parts 9510.0010 to 9510.0480, the 
112.9   debt is subject to repayment through annual principal payments, 
112.10  and the nursing facility demonstrates to the commissioner's 
112.11  satisfaction that the interest rate on the debt was less than 
112.12  market interest rates for similar arms-length transactions at 
112.13  the time the debt was incurred.  If the debt was incurred due to 
112.14  a sale between family members, the nursing facility must also 
112.15  demonstrate that the seller no longer participates in the 
112.16  management or operation of the nursing facility.  Debts meeting 
112.17  the conditions of this paragraph are subject to all other 
112.18  provisions of Minnesota Rules, parts 9549.0010 to 9549.0080. 
112.19     (f)  [BUILDING CAPITAL ALLOWANCE FOR NURSING FACILITIES 
112.20  WITH OPERATING LEASES.] For rate years beginning on or after 
112.21  July 1, 1990, a nursing facility with operating lease costs 
112.22  incurred for the nursing facility's buildings shall receive its 
112.23  building capital allowance computed in accordance with Minnesota 
112.24  Rules, part 9549.0060, subpart 8.  If an operating lease 
112.25  provides that the lessee's rent is adjusted to recognize 
112.26  improvements made by the lessor and related debt, the costs for 
112.27  capital improvements and related debt shall be allowed in the 
112.28  computation of the lessee's building capital allowance, provided 
112.29  that reimbursement for these costs under an operating lease 
112.30  shall not exceed the rate otherwise paid. 
112.31     Sec. 7.  Minnesota Statutes 1996, section 256B.431, 
112.32  subdivision 4, is amended to read: 
112.33     Subd. 4.  [SPECIAL RATES.] (a) For the rate years beginning 
112.34  July 1, 1983, and July 1, 1984, a newly constructed nursing 
112.35  facility or one with a capacity increase of 50 percent or more 
112.36  may, upon written application to the commissioner, receive an 
113.1   interim payment rate for reimbursement for property-related 
113.2   costs calculated pursuant to the statutes and rules in effect on 
113.3   May 1, 1983, and for operating costs negotiated by the 
113.4   commissioner based upon the 60th percentile established for the 
113.5   appropriate group under subdivision 2a, to be effective from the 
113.6   first day a medical assistance recipient resides in the facility 
113.7   or for the added beds.  For newly constructed nursing facilities 
113.8   which are not included in the calculation of the 60th percentile 
113.9   for any group, subdivision 2f, the commissioner shall establish 
113.10  by rule procedures for determining interim operating cost 
113.11  payment rates and interim property-related cost payment rates.  
113.12  The interim payment rate shall not be in effect for more than 17 
113.13  months.  The commissioner shall establish, by emergency and 
113.14  permanent rules, procedures for determining the interim rate and 
113.15  for making a retroactive cost settle-up after the first year of 
113.16  operation; the cost settled operating cost per diem shall not 
113.17  exceed 110 percent of the 60th percentile established for the 
113.18  appropriate group.  Until procedures determining operating cost 
113.19  payment rates according to mix of resident needs are 
113.20  established, the commissioner shall establish by rule procedures 
113.21  for determining payment rates for nursing facilities which 
113.22  provide care under a lesser care level than the level for which 
113.23  the nursing facility is certified.  
113.24     (b) For the rate years beginning on or after July 1, 1985, 
113.25  a newly constructed nursing facility or one with a capacity 
113.26  increase of 50 percent or more may, upon written application to 
113.27  the commissioner, receive an interim payment rate for 
113.28  reimbursement for property related costs, operating costs, and 
113.29  real estate taxes and special assessments calculated under rules 
113.30  promulgated by the commissioner. 
113.31     (c) For rate years beginning on or after July 1, 1983, the 
113.32  commissioner may exclude from a provision of 12 MCAR S 2.050 any 
113.33  facility that is licensed by the commissioner of health only as 
113.34  a boarding care home, certified by the commissioner of health as 
113.35  an intermediate care facility, is licensed by the commissioner 
113.36  of human services under Minnesota Rules, parts 9520.0500 to 
114.1   9520.0690, and has less than five percent of its licensed 
114.2   boarding care capacity reimbursed by the medical assistance 
114.3   program.  Until a permanent rule to establish the payment rates 
114.4   for facilities meeting these criteria is promulgated, the 
114.5   commissioner shall establish the medical assistance payment rate 
114.6   as follows:  
114.7      (1) The desk audited payment rate in effect on June 30, 
114.8   1983, remains in effect until the end of the facility's fiscal 
114.9   year.  The commissioner shall not allow any amendments to the 
114.10  cost report on which this desk audited payment rate is based.  
114.11     (2) For each fiscal year beginning between July 1, 1983, 
114.12  and June 30, 1985, the facility's payment rate shall be 
114.13  established by increasing the desk audited operating cost 
114.14  payment rate determined in clause (1) at an annual rate of five 
114.15  percent.  
114.16     (3) For fiscal years beginning on or after July 1, 1985, 
114.17  but before January 1, 1988, the facility's payment rate shall be 
114.18  established by increasing the facility's payment rate in the 
114.19  facility's prior fiscal year by the increase indicated by the 
114.20  consumer price index for Minneapolis and St. Paul.  
114.21     (4) For the fiscal year beginning on January 1, 1988, the 
114.22  facility's payment rate must be established using the following 
114.23  method:  The commissioner shall divide the real estate taxes and 
114.24  special assessments payable as stated in the facility's current 
114.25  property tax statement by actual resident days to compute a real 
114.26  estate tax and special assessment per diem.  Next, the prior 
114.27  year's payment rate must be adjusted by the higher of (1) the 
114.28  percentage change in the consumer price index (CPI-U U.S. city 
114.29  average) as published by the Bureau of Labor Statistics between 
114.30  the previous two Septembers, new series index (1967-100), or (2) 
114.31  2.5 percent, to determine an adjusted payment rate.  The 
114.32  facility's payment rate is the adjusted prior year's payment 
114.33  rate plus the real estate tax and special assessment per diem. 
114.34     (5) For fiscal years beginning on or after January 1, 1989, 
114.35  the facility's payment rate must be established using the 
114.36  following method:  The commissioner shall divide the real estate 
115.1   taxes and special assessments payable as stated in the 
115.2   facility's current property tax statement by actual resident 
115.3   days to compute a real estate tax and special assessment per 
115.4   diem.  Next, the prior year's payment rate less the real estate 
115.5   tax and special assessment per diem must be adjusted by the 
115.6   higher of (1) the percentage change in the consumer price index 
115.7   (CPI-U U.S. city average) as published by the Bureau of Labor 
115.8   Statistics between the previous two Septembers, new series index 
115.9   (1967-100), or (2) 2.5 percent, to determine an adjusted payment 
115.10  rate.  The facility's payment rate is the adjusted payment rate 
115.11  plus the real estate tax and special assessment per diem. 
115.12     (6) For the purpose of establishing payment rates under 
115.13  this paragraph, the facility's rate and reporting years coincide 
115.14  with the facility's fiscal year.  
115.15     (d) A facility that meets the criteria of paragraph (c) 
115.16  shall submit annual cost reports on forms prescribed by the 
115.17  commissioner.  
115.18     (e) (c) For the rate year beginning July 1, 1985, each 
115.19  nursing facility total payment rate must be effective two 
115.20  calendar months from the first day of the month after the 
115.21  commissioner issues the rate notice to the nursing facility.  
115.22  From July 1, 1985, until the total payment rate becomes 
115.23  effective, the commissioner shall make payments to each nursing 
115.24  facility at a temporary rate that is the prior rate year's 
115.25  operating cost payment rate increased by 2.6 percent plus the 
115.26  prior rate year's property-related payment rate and the prior 
115.27  rate year's real estate taxes and special assessments payment 
115.28  rate.  The commissioner shall retroactively adjust the 
115.29  property-related payment rate and the real estate taxes and 
115.30  special assessments payment rate to July 1, 1985, but must not 
115.31  retroactively adjust the operating cost payment rate. 
115.32     (f) (d) For the purposes of Minnesota Rules, part 
115.33  9549.0060, subpart 13, item F, the following types of 
115.34  transactions shall not be considered a sale or reorganization of 
115.35  a provider entity: 
115.36     (1) the sale or transfer of a nursing facility upon death 
116.1   of an owner; 
116.2      (2) the sale or transfer of a nursing facility due to 
116.3   serious illness or disability of an owner as defined under the 
116.4   social security act; 
116.5      (3) the sale or transfer of the nursing facility upon 
116.6   retirement of an owner at 62 years of age or older; 
116.7      (4) any transaction in which a partner, owner, or 
116.8   shareholder acquires an interest or share of another partner, 
116.9   owner, or shareholder in a nursing facility business provided 
116.10  the acquiring partner, owner, or shareholder has less than 50 
116.11  percent ownership after the acquisition; 
116.12     (5) a sale and leaseback to the same licensee which does 
116.13  not constitute a change in facility license; 
116.14     (6) a transfer of an interest to a trust; 
116.15     (7) gifts or other transfers for no consideration; 
116.16     (8) a merger of two or more related organizations; 
116.17     (9) a transfer of interest in a facility held in 
116.18  receivership; 
116.19     (10) a change in the legal form of doing business other 
116.20  than a publicly held organization which becomes privately held 
116.21  or vice versa; 
116.22     (11) the addition of a new partner, owner, or shareholder 
116.23  who owns less than 20 percent of the nursing facility or the 
116.24  issuance of stock; or 
116.25     (12) an involuntary transfer including foreclosure, 
116.26  bankruptcy, or assignment for the benefit of creditors. 
116.27     Any increase in allowable debt or allowable interest 
116.28  expense or other cost incurred as a result of the foregoing 
116.29  transactions shall be a nonallowable cost for purposes of 
116.30  reimbursement under Minnesota Rules, parts 9549.0010 to 
116.31  9549.0080. 
116.32     Sec. 8.  Minnesota Statutes 1996, section 256B.431, 
116.33  subdivision 11, is amended to read: 
116.34     Subd. 11.  [SPECIAL PROPERTY RATE SETTING PROCEDURES FOR 
116.35  CERTAIN NURSING FACILITIES.] (a) Notwithstanding Minnesota 
116.36  Rules, part 9549.0060, subpart 13, item H, to the contrary, for 
117.1   the rate year beginning July 1, 1990, a nursing facility leased 
117.2   prior to January 1, 1986, and currently subject to adverse 
117.3   licensure action under section 144A.04, subdivision 4, paragraph 
117.4   (a), or section 144A.11, subdivision 2, and whose ownership 
117.5   changes prior to July 1, 1990, shall be allowed a 
117.6   property-related payment equal to the lesser of its current 
117.7   lease obligation divided by its capacity days as determined in 
117.8   Minnesota Rules, part 9549.0060, subpart 11, as modified by 
117.9   subdivision 3f, paragraph (c), or the frozen property-related 
117.10  payment rate in effect for the rate year beginning July 1, 
117.11  1989.  For rate years beginning on or after July 1, 1991, the 
117.12  property-related payment rate shall be its rental rate computed 
117.13  using the previous owner's allowable principal and interest 
117.14  expense as allowed by the department prior to that prior owner's 
117.15  sale and lease-back transaction of December 1985. 
117.16     (b) Notwithstanding other provisions of applicable law, a 
117.17  nursing facility licensed for 122 beds on January 1, 1998, and 
117.18  located in Columbia Heights shall have its property-related 
117.19  payment rate set under this subdivision.  The commissioner shall 
117.20  make a rate adjustment by adding $2.41 to the facility's July 1, 
117.21  1997, property-related payment rate.  The adjusted 
117.22  property-related payment rate shall be effective for rate years 
117.23  beginning on or after July 1, 1998.  The adjustment in this 
117.24  paragraph shall remain in effect so long as the facility's rates 
117.25  are set under this section.  If the facility participates in the 
117.26  alternative payment system under section 256B.434, the 
117.27  adjustment in this paragraph shall be included in the facility's 
117.28  contract payment rate.  If historical rates or property costs 
117.29  recognized under this section become the basis for future 
117.30  medical assistance payments to the facility under a managed 
117.31  care, capitation, or other alternative payment system, the 
117.32  adjustment in this paragraph shall be included in the 
117.33  computation of the facility's payments. 
117.34     Sec. 9.  Minnesota Statutes 1996, section 256B.431, 
117.35  subdivision 22, is amended to read: 
117.36     Subd. 22.  [CHANGES TO NURSING FACILITY REIMBURSEMENT.] The 
118.1   nursing facility reimbursement changes in paragraphs (a) to (e) 
118.2   apply to Minnesota Rules, parts 9549.0010 to 9549.0080, and this 
118.3   section, and are effective for rate years beginning on or after 
118.4   July 1, 1993, unless otherwise indicated. 
118.5      (a) In addition to the approved pension or profit sharing 
118.6   plans allowed by the reimbursement rule, the commissioner shall 
118.7   allow those plans specified in Internal Revenue Code, sections 
118.8   403(b) and 408(k). 
118.9      (b) The commissioner shall allow as workers' compensation 
118.10  insurance costs under section 256B.421, subdivision 14, the 
118.11  costs of workers' compensation coverage obtained under the 
118.12  following conditions: 
118.13     (1) a plan approved by the commissioner of commerce as a 
118.14  Minnesota group or individual self-insurance plan as provided in 
118.15  section 79A.03; 
118.16     (2) a plan in which: 
118.17     (i) the nursing facility, directly or indirectly, purchases 
118.18  workers' compensation coverage in compliance with section 
118.19  176.181, subdivision 2, from an authorized insurance carrier; 
118.20     (ii) a related organization to the nursing facility 
118.21  reinsures the workers' compensation coverage purchased, directly 
118.22  or indirectly, by the nursing facility; and 
118.23     (iii) all of the conditions in clause (4) are met; 
118.24     (3) a plan in which: 
118.25     (i) the nursing facility, directly or indirectly, purchases 
118.26  workers' compensation coverage in compliance with section 
118.27  176.181, subdivision 2, from an authorized insurance carrier; 
118.28     (ii) the insurance premium is calculated retrospectively, 
118.29  including a maximum premium limit, and paid using the paid loss 
118.30  retro method; and 
118.31     (iii) all of the conditions in clause (4) are met; 
118.32     (4) additional conditions are: 
118.33     (i) the costs of the plan are allowable under the federal 
118.34  Medicare program; 
118.35     (ii) the reserves for the plan are maintained in an account 
118.36  controlled and administered by a person which is not a related 
119.1   organization to the nursing facility; 
119.2      (iii) the reserves for the plan cannot be used, directly or 
119.3   indirectly, as collateral for debts incurred or other 
119.4   obligations of the nursing facility or related organizations to 
119.5   the nursing facility; 
119.6      (iv) if the plan provides workers' compensation coverage 
119.7   for non-Minnesota nursing facilities, the plan's cost 
119.8   methodology must be consistent among all nursing facilities 
119.9   covered by the plan, and if reasonable, is allowed 
119.10  notwithstanding any reimbursement laws regarding cost allocation 
119.11  to the contrary; 
119.12     (v) central, affiliated, corporate, or nursing facility 
119.13  costs related to their administration of the plan are costs 
119.14  which must remain in the nursing facility's administrative cost 
119.15  category and must not be allocated to other cost categories; and 
119.16     (vi) required security deposits, whether in the form of 
119.17  cash, investments, securities, assets, letters of credit, or in 
119.18  any other form are not allowable costs for purposes of 
119.19  establishing the facilities payment rate.; and 
119.20     (vii) for the rate year beginning on July 1, 1998, a group 
119.21  of nursing facilities related by common ownership that 
119.22  self-insures workers' compensation may allocate its directly 
119.23  identified costs of self-insuring its Minnesota nursing facility 
119.24  workers among those nursing facilities in the group that are 
119.25  reimbursed under this section or section 256B.434.  The method 
119.26  of cost allocation shall be based on the ratio of each nursing 
119.27  facility's total allowable salaries and wages to that of the 
119.28  nursing facility group's total allowable salaries and wages, 
119.29  then similarly allocated within each nursing facility's 
119.30  operating cost categories.  The costs associated with the 
119.31  administration of the group's self-insurance plan must remain 
119.32  classified in the nursing facility's administrative cost 
119.33  category.  A written request of the nursing facility group's 
119.34  election to use this alternate method of allocation of 
119.35  self-insurance costs must be received by the commissioner no 
119.36  later than May 1, 1998, to take effect July 1, 1998, or such 
120.1   costs shall continue to be allocated under the existing cost 
120.2   allocation methods.  Once a nursing facility group elects this 
120.3   method of cost allocation for its workers' compensation 
120.4   self-insurance costs, it shall remain in effect until such time 
120.5   as the group no longer self-insures these costs; 
120.6      (5) any costs allowed pursuant to clauses (1) to (3) are 
120.7   subject to the following requirements: 
120.8      (i) if the nursing facility is sold or otherwise ceases 
120.9   operations, the plan's reserves must be subject to an 
120.10  actuarially based settle-up after 36 months from the date of 
120.11  sale or the date on which operations ceased.  The facility's 
120.12  medical assistance portion of the total excess plan reserves 
120.13  must be paid to the state within 30 days following the date on 
120.14  which excess plan reserves are determined; 
120.15     (ii) any distribution of excess plan reserves made to or 
120.16  withdrawals made by the nursing facility or a related 
120.17  organization are applicable credits and must be used to reduce 
120.18  the nursing facility's workers' compensation insurance costs in 
120.19  the reporting period in which a distribution or withdrawal is 
120.20  received; 
120.21     (iii) if reimbursement for the plan is sought under the 
120.22  federal Medicare program, and is audited pursuant to the 
120.23  Medicare program, the nursing facility must provide a copy of 
120.24  Medicare's final audit report, including attachments and 
120.25  exhibits, to the commissioner within 30 days of receipt by the 
120.26  nursing facility or any related organization.  The commissioner 
120.27  shall implement the audit findings associated with the plan upon 
120.28  receipt of Medicare's final audit report.  The department's 
120.29  authority to implement the audit findings is independent of its 
120.30  authority to conduct a field audit. 
120.31     (c) In the determination of incremental increases in the 
120.32  nursing facility's rental rate as required in subdivisions 14 to 
120.33  21, except for a refinancing permitted under subdivision 19, the 
120.34  commissioner must adjust the nursing facility's property-related 
120.35  payment rate for both incremental increases and decreases in 
120.36  recomputations of its rental rate; 
121.1      (d) A nursing facility's administrative cost limitation 
121.2   must be modified as follows: 
121.3      (1) if the nursing facility's licensed beds exceed 195 
121.4   licensed beds, the general and administrative cost category 
121.5   limitation shall be 13 percent; 
121.6      (2) if the nursing facility's licensed beds are more than 
121.7   150 licensed beds, but less than 196 licensed beds, the general 
121.8   and administrative cost category limitation shall be 14 percent; 
121.9   or 
121.10     (3) if the nursing facility's licensed beds is less than 
121.11  151 licensed beds, the general and administrative cost category 
121.12  limitation shall remain at 15 percent. 
121.13     (e) The care related operating rate shall be increased by 
121.14  eight cents to reimburse facilities for unfunded federal 
121.15  mandates, including costs related to hepatitis B vaccinations. 
121.16     (f) For the rate year beginning on July 1, 1998, a group of 
121.17  nursing facilities related by common ownership that self-insures 
121.18  group health, dental, or life insurance may allocate its 
121.19  directly identified costs of self-insuring its Minnesota nursing 
121.20  facility workers among those nursing facilities in the group 
121.21  that are reimbursed under this section or section 256B.434.  The 
121.22  method of cost allocation shall be based on the ratio of each 
121.23  nursing facility's total allowable salaries and wages to that of 
121.24  the nursing facility group's total allowable salaries and wages, 
121.25  then similarly allocated within each nursing facility's 
121.26  operating cost categories.  The costs associated with the 
121.27  administration of the group's self-insurance plan must remain 
121.28  classified in the nursing facility's administrative cost 
121.29  category.  A written request of the nursing facility group's 
121.30  election to use this alternate method of allocation of 
121.31  self-insurance costs must be received by the commissioner no 
121.32  later than May 1, 1998, to take effect July 1, 1998, or those 
121.33  self-insurance costs shall continue to be allocated under the 
121.34  existing cost allocation methods.  Once a nursing facility group 
121.35  elects this method of cost allocation for its group health, 
121.36  dental, or life insurance self-insurance costs, it shall remain 
122.1   in effect until such time as the group no longer self-insures 
122.2   these costs. 
122.3      Sec. 10.  Minnesota Statutes 1997 Supplement, section 
122.4   256B.431, subdivision 26, is amended to read: 
122.5      Subd. 26.  [CHANGES TO NURSING FACILITY REIMBURSEMENT 
122.6   BEGINNING JULY 1, 1997.] The nursing facility reimbursement 
122.7   changes in paragraphs (a) to (f) shall apply in the sequence 
122.8   specified in Minnesota Rules, parts 9549.0010 to 9549.0080, and 
122.9   this section, beginning July 1, 1997. 
122.10     (a) For rate years beginning on or after July 1, 1997, the 
122.11  commissioner shall limit a nursing facility's allowable 
122.12  operating per diem for each case mix category for each rate year.
122.13  The commissioner shall group nursing facilities into two groups, 
122.14  freestanding and nonfreestanding, within each geographic group, 
122.15  using their operating cost per diem for the case mix A 
122.16  classification.  A nonfreestanding nursing facility is a nursing 
122.17  facility whose other operating cost per diem is subject to the 
122.18  hospital attached, short length of stay, or the rule 80 limits.  
122.19  All other nursing facilities shall be considered freestanding 
122.20  nursing facilities.  The commissioner shall then array all 
122.21  nursing facilities in each grouping by their allowable case mix 
122.22  A operating cost per diem.  In calculating a nursing facility's 
122.23  operating cost per diem for this purpose, the commissioner shall 
122.24  exclude the raw food cost per diem related to providing special 
122.25  diets that are based on religious beliefs, as determined in 
122.26  subdivision 2b, paragraph (h).  For those nursing facilities in 
122.27  each grouping whose case mix A operating cost per diem: 
122.28     (1) is at or below the median of the array, the 
122.29  commissioner shall limit the nursing facility's allowable 
122.30  operating cost per diem for each case mix category to the lesser 
122.31  of the prior reporting year's allowable operating cost per diem 
122.32  as specified in Laws 1996, chapter 451, article 3, section 11, 
122.33  paragraph (h), plus the inflation factor as established in 
122.34  paragraph (d), clause (2), increased by two percentage points, 
122.35  or the current reporting year's corresponding allowable 
122.36  operating cost per diem; or 
123.1      (2) is above the median of the array, the commissioner 
123.2   shall limit the nursing facility's allowable operating cost per 
123.3   diem for each case mix category to the lesser of the prior 
123.4   reporting year's allowable operating cost per diem as specified 
123.5   in Laws 1996, chapter 451, article 3, section 11, paragraph (h), 
123.6   plus the inflation factor as established in paragraph (d), 
123.7   clause (2), increased by one percentage point, or the current 
123.8   reporting year's corresponding allowable operating cost per diem.
123.9      For purposes of paragraph (a), if a nursing facility 
123.10  reports on its cost report a reduction in cost due to a refund 
123.11  or credit for a rate year beginning on or after July 1, 1998, 
123.12  the commissioner shall increase that facility's spend-up limit 
123.13  for the rate year following the current rate year by the amount 
123.14  of the cost reduction divided by its resident days for the 
123.15  reporting year preceding the rate year in which the adjustment 
123.16  is to be made. 
123.17     (b) For rate years beginning on or after July 1, 1997, the 
123.18  commissioner shall limit the allowable operating cost per diem 
123.19  for high cost nursing facilities.  After application of the 
123.20  limits in paragraph (a) to each nursing facility's operating 
123.21  cost per diem, the commissioner shall group nursing facilities 
123.22  into two groups, freestanding or nonfreestanding, within each 
123.23  geographic group.  A nonfreestanding nursing facility is a 
123.24  nursing facility whose other operating cost per diem are subject 
123.25  to hospital attached, short length of stay, or rule 80 limits.  
123.26  All other nursing facilities shall be considered freestanding 
123.27  nursing facilities.  The commissioner shall then array all 
123.28  nursing facilities within each grouping by their allowable case 
123.29  mix A operating cost per diem.  In calculating a nursing 
123.30  facility's operating cost per diem for this purpose, the 
123.31  commissioner shall exclude the raw food cost per diem related to 
123.32  providing special diets that are based on religious beliefs, as 
123.33  determined in subdivision 2b, paragraph (h).  For those nursing 
123.34  facilities in each grouping whose case mix A operating cost per 
123.35  diem exceeds 1.0 standard deviation above the median, the 
123.36  commissioner shall reduce their allowable operating cost per 
124.1   diem by three percent.  For those nursing facilities in each 
124.2   grouping whose case mix A operating cost per diem exceeds 0.5 
124.3   standard deviation above the median but is less than or equal to 
124.4   1.0 standard deviation above the median, the commissioner shall 
124.5   reduce their allowable operating cost per diem by two percent.  
124.6   However, in no case shall a nursing facility's operating cost 
124.7   per diem be reduced below its grouping's limit established at 
124.8   0.5 standard deviations above the median. 
124.9      (c) For rate years beginning on or after July 1, 1997, the 
124.10  commissioner shall determine a nursing facility's efficiency 
124.11  incentive by first computing the allowable difference, which is 
124.12  the lesser of $4.50 or the amount by which the facility's other 
124.13  operating cost limit exceeds its nonadjusted other operating 
124.14  cost per diem for that rate year.  The commissioner shall 
124.15  compute the efficiency incentive by: 
124.16     (1) subtracting the allowable difference from $4.50 and 
124.17  dividing the result by $4.50; 
124.18     (2) multiplying 0.20 by the ratio resulting from clause 
124.19  (1), and then; 
124.20     (3) adding 0.50 to the result from clause (2); and 
124.21     (4) multiplying the result from clause (3) times the 
124.22  allowable difference. 
124.23     The nursing facility's efficiency incentive payment shall 
124.24  be the lesser of $2.25 or the product obtained in clause (4). 
124.25     (d) For rate years beginning on or after July 1, 1997, the 
124.26  forecasted price index for a nursing facility's allowable 
124.27  operating cost per diem shall be determined under clauses (1) 
124.28  and (2) using the change in the Consumer Price Index-All Items 
124.29  (United States city average) (CPI-U) as forecasted by Data 
124.30  Resources, Inc.  The commissioner shall use the indices as 
124.31  forecasted in the fourth quarter of the calendar year preceding 
124.32  the rate year, subject to subdivision 2l, paragraph (c).  
124.33     (1) The CPI-U forecasted index for allowable operating cost 
124.34  per diem shall be based on the 21-month period from the midpoint 
124.35  of the nursing facility's reporting year to the midpoint of the 
124.36  rate year following the reporting year. 
125.1      (2) For rate years beginning on or after July 1, 1997, the 
125.2   forecasted index for operating cost limits referred to in 
125.3   subdivision 21, paragraph (b), shall be based on the CPI-U for 
125.4   the 12-month period between the midpoints of the two reporting 
125.5   years preceding the rate year. 
125.6      (e) After applying these provisions for the respective rate 
125.7   years, the commissioner shall index these allowable operating 
125.8   cost per diem by the inflation factor provided for in paragraph 
125.9   (d), clause (1), and add the nursing facility's efficiency 
125.10  incentive as computed in paragraph (c). 
125.11     (f) For rate years beginning on or after July 1, 1997, the 
125.12  total operating cost payment rates for a nursing facility shall 
125.13  be the greater of the total operating cost payment rates 
125.14  determined under this section or the total operating cost 
125.15  payment rates in effect on June 30, 1997, subject to rate 
125.16  adjustments due to field audit or rate appeal resolution.  This 
125.17  provision shall not apply to subsequent field audit adjustments 
125.18  of the nursing facility's operating cost rates for rate years 
125.19  beginning on or after July 1, 1997. 
125.20     (g) For the rate years beginning on July 1, 1997, and July 
125.21  1, 1998, and July 1, 1999, a nursing facility licensed for 40 
125.22  beds effective May 1, 1992, with a subsequent increase of 20 
125.23  Medicare/Medicaid certified beds, effective January 26, 1993, in 
125.24  accordance with an increase in licensure is exempt from 
125.25  paragraphs (a) and (b). 
125.26     (h) For a nursing facility whose construction project was 
125.27  authorized according to section 144A.073, subdivision 5, 
125.28  paragraph (g), the operating cost payment rates for the third 
125.29  location shall be determined based on Minnesota Rules, part 
125.30  9549.0057.  Paragraphs (a) and (b) shall not apply until the 
125.31  second rate year after the settle-up cost report is filed.  
125.32  Notwithstanding subdivision 2b, paragraph (g), real estate taxes 
125.33  and special assessments payable by the third location, a 
125.34  501(c)(3) nonprofit corporation, shall be included in the 
125.35  payment rates determined under this subdivision for all 
125.36  subsequent rate years. 
126.1      (i) For the rate year beginning July 1, 1997, the 
126.2   commissioner shall compute the payment rate for a nursing 
126.3   facility licensed for 94 beds on September 30, 1996, that 
126.4   applied in October 1993 for approval of a total replacement 
126.5   under the moratorium exception process in section 144A.073, and 
126.6   completed the approved replacement in June 1995, with other 
126.7   operating cost spend-up limit under paragraph (a), increased by 
126.8   $3.98, and after computing the facility's payment rate according 
126.9   to this section, the commissioner shall make a one-year positive 
126.10  rate adjustment of $3.19 for operating costs related to the 
126.11  newly constructed total replacement, without application of 
126.12  paragraphs (a) and (b).  The facility's per diem, before the 
126.13  $3.19 adjustment, shall be used as the prior reporting year's 
126.14  allowable operating cost per diem for payment rate calculation 
126.15  for the rate year beginning July 1, 1998.  A facility described 
126.16  in this paragraph is exempt from paragraph (b) for the rate 
126.17  years beginning July 1, 1997, and July 1, 1998. 
126.18     (j) For the purpose of applying the limit stated in 
126.19  paragraph (a), a nursing facility in Kandiyohi county licensed 
126.20  for 86 beds that was granted hospital-attached status on 
126.21  December 1, 1994, shall have the prior year's allowable 
126.22  care-related per diem increased by $3.207 and the prior year's 
126.23  other operating cost per diem increased by $4.777 before adding 
126.24  the inflation in paragraph (d), clause (2), for the rate year 
126.25  beginning on July 1, 1997. 
126.26     (k) For the purpose of applying the limit stated in 
126.27  paragraph (a), a 117 bed nursing facility located in Pine county 
126.28  shall have the prior year's allowable other operating cost per 
126.29  diem increased by $1.50 before adding the inflation in paragraph 
126.30  (d), clause (2), for the rate year beginning on July 1, 1997. 
126.31     (l) For the purpose of applying the limit under paragraph 
126.32  (a), a nursing facility in Hibbing licensed for 192 beds shall 
126.33  have the prior year's allowable other operating cost per diem 
126.34  increased by $2.67 before adding the inflation in paragraph (d), 
126.35  clause (2), for the rate year beginning July 1, 1997. 
126.36     Sec. 11.  Minnesota Statutes 1996, section 256B.431, is 
127.1   amended by adding a subdivision to read: 
127.2      Subd. 27.  [CHANGES TO NURSING FACILITY REIMBURSEMENT 
127.3   BEGINNING JULY 1, 1998.] (a) For the purpose of applying the 
127.4   limit stated in subdivision 26, paragraph (a), a nursing 
127.5   facility in Hennepin county licensed for 181 beds on September 
127.6   30, 1996, shall have the prior year's allowable care-related per 
127.7   diem increased by $1.455 and the prior year's other operating 
127.8   cost per diem increased by $0.439 before adding the inflation in 
127.9   subdivision 26, paragraph (d), clause (2), for the rate year 
127.10  beginning on July 1, 1998. 
127.11     (b) For the purpose of applying the limit stated in 
127.12  subdivision 26, paragraph (a), a nursing facility in Hennepin 
127.13  county licensed for 161 beds on September 30, 1996, shall have 
127.14  the prior year's allowable care-related per diem increased by 
127.15  $1.154 and the prior year's other operating cost per diem 
127.16  increased by $0.256 before adding the inflation in subdivision 
127.17  26, paragraph (d), clause (2), for the rate year beginning on 
127.18  July 1, 1998. 
127.19     (c) For the purpose of applying the limit stated in 
127.20  subdivision 26, paragraph (a), a nursing facility in Ramsey 
127.21  county licensed for 176 beds on September 30, 1996, shall have 
127.22  the prior year's allowable care-related per diem increased by 
127.23  $0.803 and the prior year's other operating cost per diem 
127.24  increased by $0.272 before adding the inflation in subdivision 
127.25  26, paragraph (d), clause (2), for the rate year beginning on 
127.26  July 1, 1998. 
127.27     (d) For the purpose of applying the limit stated in 
127.28  subdivision 26, paragraph (a), a nursing facility in Brown 
127.29  county licensed for 86 beds on September 30, 1996, shall have 
127.30  the prior year's allowable care-related per diem increased by 
127.31  $0.850 and the prior year's other operating cost per diem 
127.32  increased by $0.275 before adding the inflation in subdivision 
127.33  26, paragraph (d), clause (2), for the rate year beginning on 
127.34  July 1, 1998. 
127.35     (e) For the rate year beginning July 1, 1998, the 
127.36  commissioner shall compute the payment rate for a nursing 
128.1   facility, which was licensed for 110 beds on May 1, 1997, was 
128.2   granted approval in January 1994 for a replacement and 
128.3   remodeling project under the moratorium exception process in 
128.4   section 144A.073, and completed the approved replacement and 
128.5   remodeling project on March 14, 1997, by increasing the other 
128.6   operating cost spend-up limit under paragraph (a) by $1.64.  
128.7   After computing the facility's payment rate for the rate year 
128.8   beginning July 1, 1998, according to this section, the 
128.9   commissioner shall make a one-year positive rate adjustment of 
128.10  48 cents for increased real estate taxes resulting from 
128.11  completion of the moratorium exception project, without 
128.12  application of paragraphs (a) and (b). 
128.13     (f) For the rate year beginning July 1, 1998, the 
128.14  commissioner shall compute the payment rate for a nursing 
128.15  facility exempted from care-related limits under subdivision 2b, 
128.16  paragraph (d), clause (2), with a minimum of three-quarters of 
128.17  its beds licensed to provide residential services for the 
128.18  physically handicapped under Minnesota Rules, parts 9570.2000 to 
128.19  9570.3400, with the care-related spend-up limit under 
128.20  subdivision 26, paragraph (a), increased by $13.21 for the rate 
128.21  year beginning July 1, 1998, without application of subdivision 
128.22  26, paragraph (b).  For rate years beginning on or after July 1, 
128.23  1999, the commissioner shall exclude that amount in calculating 
128.24  the facility's operating cost per diem for purposes of applying 
128.25  subdivision 26, paragraph (b). 
128.26     (g) For the rate year beginning July 1, 1998, a nursing 
128.27  facility in Canby, Minnesota, licensed for 75 beds shall be 
128.28  reimbursed without the limitation imposed under subdivision 26, 
128.29  paragraph (a), and for rate years beginning on or after July 1, 
128.30  1999, its base costs shall be calculated on the basis of its 
128.31  September 30, 1997, cost report. 
128.32     (h) The nursing facility reimbursement changes in 
128.33  paragraphs (i) and (j) shall apply in the sequence specified in 
128.34  this section and Minnesota Rules, parts 9549.0010 to 9549.0080, 
128.35  beginning July 1, 1998. 
128.36     (i) For rate years beginning on or after July 1, 1998, the 
129.1   operating cost limits established in subdivisions 2, 2b, 2i, 3c, 
129.2   and 22, paragraph (d), and any previously effective 
129.3   corresponding limits in law or rule shall not apply, except that 
129.4   these cost limits shall still be calculated for purposes of 
129.5   determining efficiency incentive per diems.  For rate years 
129.6   beginning on or after July 1, 1998, the total operating cost 
129.7   payment rates for a nursing facility shall be the greater of the 
129.8   total operating cost payment rates determined under this section 
129.9   or the total operating cost payment rates in effect on June 30, 
129.10  1998, subject to rate adjustments due to field audit or rate 
129.11  appeal resolution.  
129.12     (j) For rate years beginning on or after July 1, 1998, the 
129.13  operating cost per diem referred to in subdivision 26, paragraph 
129.14  (a), clauses (1) and (2), is the sum of the care-related and 
129.15  other operating per diems for a given case mix class.  Any 
129.16  reductions to the combined operating per diem shall be divided 
129.17  proportionately between the care-related and other operating per 
129.18  diems. 
129.19     (k) For rate years beginning on or after July 1, 1998, the 
129.20  commissioner shall modify the determination of the spend-up 
129.21  limits referred to in subdivision 26, paragraph (a), by indexing 
129.22  each group's previous year's median value by the factor in 
129.23  subdivision 26, paragraph (d), clause (2), plus one percentage 
129.24  point.  
129.25     (l) For rate years beginning on or after July 1, 1998, the 
129.26  commissioner shall modify the determination of the high cost 
129.27  limits referred to in subdivision 26, paragraph (b), by indexing 
129.28  each group's previous year's high cost per diem limits at .5 and 
129.29  one standard deviations above the median by the factor in 
129.30  subdivision 26, paragraph (d), clause (2), plus one percentage 
129.31  point. 
129.32     Sec. 12.  Minnesota Statutes 1997 Supplement, section 
129.33  256B.433, subdivision 3a, is amended to read: 
129.34     Subd. 3a.  [EXEMPTION FROM REQUIREMENT FOR SEPARATE THERAPY 
129.35  BILLING.] The provisions of subdivision 3 do not apply to 
129.36  nursing facilities that are reimbursed according to the 
130.1   provisions of section 256B.431 and are located in a county 
130.2   participating in the prepaid medical assistance 
130.3   program.  Nursing facilities that are reimbursed according to 
130.4   the provisions of section 256B.434 and are located in a county 
130.5   participating in the prepaid medical assistance program are 
130.6   exempt from the maximum therapy rent revenue provisions of 
130.7   subdivision 3, paragraph (c). 
130.8      Sec. 13.  Minnesota Statutes 1997 Supplement, section 
130.9   256B.434, subdivision 10, is amended to read: 
130.10     Subd. 10.  [EXEMPTIONS.] (a) To the extent permitted by 
130.11  federal law, (1) a facility that has entered into a contract 
130.12  under this section is not required to file a cost report, as 
130.13  defined in Minnesota Rules, part 9549.0020, subpart 13, for any 
130.14  year after the base year that is the basis for the calculation 
130.15  of the contract payment rate for the first rate year of the 
130.16  alternative payment demonstration project contract; and (2) a 
130.17  facility under contract is not subject to audits of historical 
130.18  costs or revenues, or paybacks or retroactive adjustments based 
130.19  on these costs or revenues, except audits, paybacks, or 
130.20  adjustments relating to the cost report that is the basis for 
130.21  calculation of the first rate year under the contract. 
130.22     (b) A facility that is under contract with the commissioner 
130.23  under this section is not subject to the moratorium on licensure 
130.24  or certification of new nursing home beds in section 144A.071, 
130.25  unless the project results in a net increase in bed capacity or 
130.26  involves relocation of beds from one site to another.  Contract 
130.27  payment rates must not be adjusted to reflect any additional 
130.28  costs that a nursing facility incurs as a result of a 
130.29  construction project undertaken under this paragraph.  In 
130.30  addition, as a condition of entering into a contract under this 
130.31  section, a nursing facility must agree that any future medical 
130.32  assistance payments for nursing facility services will not 
130.33  reflect any additional costs attributable to the sale of a 
130.34  nursing facility under this section and to construction 
130.35  undertaken under this paragraph that otherwise would not be 
130.36  authorized under the moratorium in section 144A.073.  Nothing in 
131.1   this section prevents a nursing facility participating in the 
131.2   alternative payment demonstration project under this section 
131.3   from seeking approval of an exception to the moratorium through 
131.4   the process established in section 144A.073, and if approved the 
131.5   facility's rates shall be adjusted to reflect the cost of the 
131.6   project.  Nothing in this section prevents a nursing facility 
131.7   participating in the alternative payment demonstration project 
131.8   from seeking legislative approval of an exception to the 
131.9   moratorium under section 144A.071, and, if enacted, the 
131.10  facility's rates shall be adjusted to reflect the cost of the 
131.11  project. 
131.12     (c) Notwithstanding section 256B.48, subdivision 6, 
131.13  paragraphs (c), (d), and (e), and pursuant to any terms and 
131.14  conditions contained in the facility's contract, a nursing 
131.15  facility that is under contract with the commissioner under this 
131.16  section is in compliance with section 256B.48, subdivision 6, 
131.17  paragraph (b), if the facility is Medicare certified. 
131.18     (d) Notwithstanding paragraph (a), if by April 1, 1996, the 
131.19  health care financing administration has not approved a required 
131.20  waiver, or the health care financing administration otherwise 
131.21  requires cost reports to be filed prior to the waiver's 
131.22  approval, the commissioner shall require a cost report for the 
131.23  rate year. 
131.24     (e) A facility that is under contract with the commissioner 
131.25  under this section shall be allowed to change therapy 
131.26  arrangements from an unrelated vendor to a related vendor during 
131.27  the term of the contract.  The commissioner may develop 
131.28  reasonable requirements designed to prevent an increase in 
131.29  therapy utilization for residents enrolled in the medical 
131.30  assistance program. 
131.31     Sec. 14. [256B.435] [NURSING FACILITY REIMBURSEMENT SYSTEM 
131.32  EFFECTIVE JULY 1, 2000.] 
131.33     Subdivision 1.  [IN GENERAL.] Effective July 1, 2000, the 
131.34  commissioner shall implement a performance-based contracting 
131.35  system to replace the current method of setting operating cost 
131.36  payment rates under sections 256B.431 and 256B.434 and Minnesota 
132.1   Rules, parts 9549.0010 to 9549.0080.  A nursing facility in 
132.2   operation on May 1, 1998, with payment rates not established 
132.3   under section 256B.431 or 256B.434 on that date, is ineligible 
132.4   for this performance-based contracting system.  In determining 
132.5   prospective payment rates of nursing facility services, the 
132.6   commissioner shall distinguish between operating costs and 
132.7   property-related costs.  The commissioner of finance shall 
132.8   include an annual inflationary adjustment in operating costs for 
132.9   nursing facilities using the inflation factor specified in 
132.10  subdivision 3 as a budget change request in each biennial 
132.11  detailed expenditure budget submitted to the legislature under 
132.12  section 16A.11.  Property related payment rates, including real 
132.13  estate taxes and special assessments, shall be determined under 
132.14  section 256B.431 or 256B.434 or under a new property-related 
132.15  reimbursement system, if one is implemented by the commissioner 
132.16  under subdivision 3. 
132.17     Subd. 2.  [CONTRACT PROVISIONS.] (a) The performance-based 
132.18  contract with each nursing facility must include provisions that:
132.19     (1) apply the resident case mix assessment provisions of 
132.20  Minnesota Rules, parts 9549.0051, 9549.0058, and 9549.0059, or 
132.21  another assessment system, with the goal of moving to a single 
132.22  assessment system; 
132.23     (2) monitor resident outcomes through various methods, such 
132.24  as quality indicators based on the minimum data set and other 
132.25  utilization and performance measures; 
132.26     (3) require the establishment and use of a continuous 
132.27  quality improvement process that integrates information from 
132.28  quality indicators and regular resident and family satisfaction 
132.29  interviews; 
132.30     (4) require annual reporting of facility statistical 
132.31  information, including resident days by case mix category, 
132.32  productive nursing hours, wages and benefits, and raw food costs 
132.33  for use by the commissioner in the development of facility 
132.34  profiles that include trends in payment and service utilization; 
132.35     (5) require from each nursing facility an annual certified 
132.36  audited financial statement consisting of a balance sheet, 
133.1   income and expense statements, and an opinion from either a 
133.2   licensed or certified public accountant, if a certified audit 
133.3   was prepared, or unaudited financial statements if no certified 
133.4   audit was prepared; and 
133.5      (6) establish additional requirements and penalties for 
133.6   nursing facilities not meeting the standards set forth in the 
133.7   performance-based contract. 
133.8      (b) The commissioner may develop additional incentive-based 
133.9   payments for achieving outcomes specified in each contract.  The 
133.10  specified facility-specific outcomes must be measurable and 
133.11  approved by the commissioner. 
133.12     (c) The commissioner may also contract with nursing 
133.13  facilities in other ways through requests for proposals, 
133.14  including contracts on a risk or nonrisk basis, with nursing 
133.15  facilities or consortia of nursing facilities, to provide 
133.16  comprehensive long-term care coverage on a premium or capitated 
133.17  basis. 
133.18     Subd. 3.  [PAYMENT RATE PROVISIONS.] (a) For rate years 
133.19  beginning on or after July 1, 2000, within the limits of 
133.20  appropriations specifically for this purpose, the commissioner 
133.21  shall determine operating cost payment rates for each licensed 
133.22  and certified nursing facility by indexing its operating cost 
133.23  payment rates in effect on June 30, 2000, for inflation.  The 
133.24  inflation factor to be used must be based on the change in the 
133.25  Consumer Price Index-All Items, United States city average 
133.26  (CPI-U) as forecasted by Data Resources, Inc. in the fourth 
133.27  quarter preceding the rate year.  The CPI-U forecasted index for 
133.28  operating cost payment rates shall be based on the 12-month 
133.29  period from the midpoint of the nursing facility's prior rate 
133.30  year to the midpoint of the rate year for which the operating 
133.31  payment rate is being determined. 
133.32     (b) Beginning July 1, 2000, each nursing facility subject 
133.33  to a performance-based contract under this section shall choose 
133.34  one of two methods of payment for property related costs: 
133.35     (1) the method established in section 256B.434; or 
133.36     (2) the method established in section 256B.431.  
134.1   Once the nursing facility has made the election in paragraph 
134.2   (b), that election shall remain in effect for at least four 
134.3   years or until an alternative property payment system is 
134.4   developed. 
134.5      (c) For rate years beginning on or after July 1, 2000, the 
134.6   commissioner may implement a new method of payment for property 
134.7   related costs that addresses the capital needs of nursing 
134.8   facilities.  Notwithstanding paragraph (b), the new property 
134.9   payment system or systems, if implemented, shall replace the 
134.10  current method of setting property payment rates under sections 
134.11  256B.431 and 256B.434.  
134.12     Sec. 15.  Minnesota Statutes 1996, section 256B.501, 
134.13  subdivision 12, is amended to read: 
134.14     Subd. 12.  [ICF/MR SALARY ADJUSTMENTS.] For the rate period 
134.15  beginning January Effective July 1, 1992 1998, and ending 
134.16  September 30, 1993 to September 30, 2000, the commissioner shall 
134.17  add make available the appropriate salary adjustment cost per 
134.18  diem calculated in paragraphs (a) to (d) (e) to the total 
134.19  operating cost payment rate of each facility subject to 
134.20  reimbursement under this section and Laws 1993 First Special 
134.21  Session, chapter 1, article 4, section 11.  The salary 
134.22  adjustment cost per diem must be determined as follows: 
134.23     (a)  [COMPUTATION AND REVIEW GUIDELINES.] Except as 
134.24  provided in paragraph (c), A state-operated community service, 
134.25  and any facility whose payment rates are governed by closure 
134.26  agreements, receivership agreements, or Minnesota Rules, part 
134.27  9553.0075, are is not eligible for a salary adjustment otherwise 
134.28  granted under this subdivision.  For purposes of the salary 
134.29  adjustment per diem computation and reviews in this subdivision, 
134.30  the term "salary adjustment cost" means the facility's allowable 
134.31  program operating cost category employee training expenses, and 
134.32  the facility's allowable salaries, payroll taxes, and fringe 
134.33  benefits.  The term does not include these same salary-related 
134.34  costs for both administrative or central office employees. 
134.35     For the purpose of determining the amount of salary 
134.36  adjustment to be granted under this subdivision, the 
135.1   commissioner must use the reporting year ending December 31, 
135.2   1990 1996, as the base year for the salary adjustment per diem 
135.3   computation.  For the purpose of both years' salary adjustment 
135.4   cost review, the commissioner must use the facility's salary 
135.5   adjustment cost for the reporting year ending December 31, 1991, 
135.6   as the base year.  If the base year and the reporting years 
135.7   subject to review include salary cost reclassifications made by 
135.8   the department, the commissioner must reconcile those 
135.9   differences before completing the salary adjustment per diem 
135.10  review. 
135.11     (b)  [SALARY ADJUSTMENT PER DIEM COMPUTATION.] For the rate 
135.12  period beginning January 1, 1992 July 1, 1998, each facility 
135.13  shall receive a salary adjustment cost per diem equal to its 
135.14  salary adjustment costs multiplied by 1-1/2 3.0 percent, and 
135.15  then divided by the facility's resident days.  
135.16     (c)  [ADJUSTMENTS FOR NEW FACILITIES.] For newly 
135.17  constructed or newly established facilities, except for 
135.18  state-operated community services, whose payment rates are 
135.19  governed by Minnesota Rules, part 9553.0075, if the settle-up 
135.20  cost report includes a reporting year which is subject to review 
135.21  under this subdivision, the commissioner shall adjust the rule 
135.22  provision governing the maximum settle-up payment rate by 
135.23  increasing the .4166 percent for each full month of the 
135.24  settle-up cost report to .7083.  For any subsequent rate period 
135.25  which is authorized for salary adjustments under this 
135.26  subdivision, the commissioner shall compute salary adjustment 
135.27  cost per diems by annualizing the salary adjustment costs for 
135.28  the settle-up cost report period and treat that period as the 
135.29  base year for purposes of reviewing salary adjustment cost per 
135.30  diems. 
135.31     (d)  [SALARY ADJUSTMENT PER DIEM REVIEW.] The commissioner 
135.32  shall review the implementation of the salary adjustments on a 
135.33  per diem basis.  For reporting years ending December 31, 1992, 
135.34  and December 31, 1993, the commissioner must review and 
135.35  determine the amount of change in salary adjustment costs in 
135.36  both of the above reporting years over the base year after the 
136.1   reporting year ending December 31, 1993.  The commissioner must 
136.2   inflate the base year's salary adjustment costs by the 
136.3   cumulative percentage increase granted in paragraph (b), plus 
136.4   three percentage points for each of the two years reviewed.  The 
136.5   commissioner must then compare each facility's salary adjustment 
136.6   costs for the reporting year divided by the facility's resident 
136.7   days for both reporting years to the base year's inflated salary 
136.8   adjustment cost divided by the facility's resident days for the 
136.9   base year.  If the facility has had a one-time program operating 
136.10  cost adjustment settle-up during any of the reporting years 
136.11  subject to review, the commissioner must remove the per diem 
136.12  effect of the one-time program adjustment before completing the 
136.13  review and per diem comparison. 
136.14     The review and per diem comparison must be done by the 
136.15  commissioner after the reporting year ending December 31, 1993.  
136.16  If the salary adjustment cost per diem for the reporting years 
136.17  being reviewed is less than the base year's inflated salary 
136.18  adjustment cost per diem, the commissioner must recover the 
136.19  difference within 120 days after the date of written notice.  
136.20  The amount of the recovery shall be equal to the per diem 
136.21  difference multiplied by the facility's resident days in the 
136.22  reporting years being reviewed.  Written notice of the amount 
136.23  subject to recovery must be given by the commissioner following 
136.24  both reporting years reviewed.  Interest charges must be 
136.25  assessed by the commissioner after the 120th day of that notice 
136.26  at the same interest rate the commissioner assesses for other 
136.27  balance outstanding. 
136.28     (c)  [SUBMITTAL OF PLAN.] A facility may apply for the 
136.29  salary adjustment per diem calculated under this subdivision.  
136.30  The application must be made to the commissioner and contain a 
136.31  plan by which the facility will distribute the salary adjustment 
136.32  to employees of the facility.  For facilities in which the 
136.33  employees are represented by an exclusive bargaining 
136.34  representative, an agreement negotiated and agreed to by the 
136.35  employer and the exclusive bargaining representative, after July 
136.36  1, 1998, may constitute the plan for the salary distribution.  
137.1   The commissioner shall review the plan to ensure that the salary 
137.2   adjustment per diem is used solely to increase the compensation 
137.3   of facility employees.  To be eligible, a facility must submit 
137.4   its plan for the salary distribution by December 31, 1998.  If a 
137.5   facility's plan for salary distribution is effective for its 
137.6   employees after July 1, 1998, the salary adjustment cost per 
137.7   diem shall be effective the same date as its plan. 
137.8      (d)  [COST REPORT.] Additional costs incurred by facilities 
137.9   as a result of this salary adjustment are not allowable costs 
137.10  for purposes of the December 31, 1998, cost report. 
137.11     (e)  [SALARY ADJUSTMENT.] In order to apply for a salary 
137.12  adjustment, a facility reimbursed under Laws 1993, First Special 
137.13  Session chapter 1, article 4, section 11, must report the 
137.14  information referred to in paragraph (a) in the application, in 
137.15  the manner specified by the commissioner. 
137.16     Sec. 16.  [256B.5011] [ICF/MR REIMBURSEMENT SYSTEM 
137.17  EFFECTIVE OCTOBER 1, 2000.] 
137.18     Subdivision 1.  [IN GENERAL.] Effective October 1, 2000, 
137.19  the commissioner shall implement a performance-based contracting 
137.20  system to replace the current method of setting total cost 
137.21  payment rates under section 256B.501 and Minnesota Rules, parts 
137.22  9553.0010 to 9553.0080.  In determining prospective payment 
137.23  rates of intermediate care facilities for persons with mental 
137.24  retardation or related conditions, the commissioner shall index 
137.25  each facility's total payment rate by an inflation factor as 
137.26  described in subdivision 3.  The commissioner of finance shall 
137.27  include annual inflation adjustments in operating costs for 
137.28  intermediate care facilities for persons with mental retardation 
137.29  and related conditions as a budget change request in each 
137.30  biennial detailed expenditure budget submitted to the 
137.31  legislature under section 16A.11. 
137.32     Subd. 2.  [CONTRACT PROVISIONS.] The performance-based 
137.33  contract with each intermediate care facility must include 
137.34  provisions for: 
137.35     (1) modifying payments when significant changes occur in 
137.36  the needs of the consumers; 
138.1      (2) monitoring service quality using performance indicators 
138.2   that measure consumer outcomes; 
138.3      (3) the establishment and use of continuous quality 
138.4   improvement processes using the results attained through service 
138.5   quality monitoring; 
138.6      (4) the annual reporting of facility statistical 
138.7   information on all supervisory personnel, direct care personnel, 
138.8   specialized support personnel, hours, wages and benefits, 
138.9   staff-to-consumer ratios, and staffing patterns; 
138.10     (5) annual aggregate facility financial information or an 
138.11  annual certified audited financial statement, including a 
138.12  balance sheet and income and expense statements for each 
138.13  facility, if a certified audit was prepared; and 
138.14     (6) additional requirements and penalties for intermediate 
138.15  care facilities not meeting the standards set forth in the 
138.16  performance-based contract. 
138.17     Subd. 3.  [PAYMENT RATE PROVISIONS.] For rate years 
138.18  beginning on or after October 1, 2000, within the limits of 
138.19  appropriations specifically for this purpose, the commissioner 
138.20  shall determine the total payment rate for each licensed and 
138.21  certified intermediate care facility by indexing the total 
138.22  payment rate in effect on September 30, 2000, for inflation.  
138.23  The inflation factor to be used must be based on the change in 
138.24  the Consumer Price Index-All Items, United States city average 
138.25  (CPI-U) as forecasted by Data Resources, Inc. in the first 
138.26  quarter of the calendar year during which the rate year begins.  
138.27  The CPI-U forecasted index for total payment rates shall be 
138.28  based on the 12-month period from the midpoint of the facility's 
138.29  prior rate year to the midpoint of the rate year for which the 
138.30  operating payment rate is being determined.  
138.31     Sec. 17.  Minnesota Statutes 1996, section 256B.69, is 
138.32  amended by adding a subdivision to read: 
138.33     Subd. 26.  [CONTINUATION OF PAYMENTS THROUGH DISCHARGE.] In 
138.34  the event a medical assistance recipient or beneficiary enrolled 
138.35  in a health plan under this section is denied nursing facility 
138.36  services after residing in the facility for more than 180 days, 
139.1   any denial of medical assistance payment to a provider under 
139.2   this section shall be prospective only and payments to the 
139.3   provider shall continue until the resident is discharged or 30 
139.4   days after the effective date of the service denial, whichever 
139.5   is sooner. 
139.6      Sec. 18.  Minnesota Statutes 1996, section 256I.04, 
139.7   subdivision 1, is amended to read: 
139.8      Subdivision 1.  [INDIVIDUAL ELIGIBILITY REQUIREMENTS.] An 
139.9   individual is eligible for and entitled to a group residential 
139.10  housing payment to be made on the individual's behalf if the 
139.11  county agency has approved the individual's residence in a group 
139.12  residential housing setting and the individual meets the 
139.13  requirements in paragraph (a) or (b).  
139.14     (a) The individual is aged, blind, or is over 18 years of 
139.15  age and disabled as determined under the criteria used by the 
139.16  title II program of the Social Security Act, and meets the 
139.17  resource restrictions and standards of the supplemental security 
139.18  income program, and the individual's countable income after 
139.19  deducting the (1) exclusions and disregards of the SSI 
139.20  program and, (2) the medical assistance personal needs allowance 
139.21  under section 256B.35, and (3) an amount equal to the income 
139.22  actually made available to a community spouse by an elderly 
139.23  waiver recipient under the provisions of sections 256B.0575, 
139.24  paragraph (a), clause (4), and 256B.058, subdivision 2, is less 
139.25  than the monthly rate specified in the county agency's agreement 
139.26  with the provider of group residential housing in which the 
139.27  individual resides.  
139.28     (b) The individual meets a category of eligibility under 
139.29  section 256D.05, subdivision 1, paragraph (a), and the 
139.30  individual's resources are less than the standards specified by 
139.31  section 256D.08, and the individual's countable income as 
139.32  determined under sections 256D.01 to 256D.21, less the medical 
139.33  assistance personal needs allowance under section 256B.35 is 
139.34  less than the monthly rate specified in the county agency's 
139.35  agreement with the provider of group residential housing in 
139.36  which the individual resides. 
140.1      Sec. 19.  Minnesota Statutes 1996, section 256I.04, 
140.2   subdivision 3, is amended to read: 
140.3      Subd. 3.  [MORATORIUM ON THE DEVELOPMENT OF GROUP 
140.4   RESIDENTIAL HOUSING BEDS.] (a) County agencies shall not enter 
140.5   into agreements for new group residential housing beds with 
140.6   total rates in excess of the MSA equivalent rate except:  (1) 
140.7   for group residential housing establishments meeting the 
140.8   requirements of subdivision 2a, clause (2) with department 
140.9   approval; (2) for group residential housing establishments 
140.10  licensed under Minnesota Rules, parts 9525.0215 to 9525.0355, 
140.11  provided the facility is needed to meet the census reduction 
140.12  targets for persons with mental retardation or related 
140.13  conditions at regional treatment centers; (3) to ensure 
140.14  compliance with the federal Omnibus Budget Reconciliation Act 
140.15  alternative disposition plan requirements for inappropriately 
140.16  placed persons with mental retardation or related conditions or 
140.17  mental illness; (4) up to 80 beds in a single, specialized 
140.18  facility located in Hennepin county that will provide housing 
140.19  for chronic inebriates who are repetitive users of 
140.20  detoxification centers and are refused placement in emergency 
140.21  shelters because of their state of intoxication., and planning 
140.22  for the specialized facility must have been initiated before 
140.23  July 1, 1991, in anticipation of receiving a grant from the 
140.24  housing finance agency under section 462A.05, subdivision 20a, 
140.25  paragraph (b); or (5) notwithstanding the provisions of 
140.26  subdivision 2a, for up to 180 190 supportive housing units in 
140.27  Anoka, Dakota, Hennepin, or Ramsey county for homeless adults 
140.28  with a mental illness, a history of substance abuse, or human 
140.29  immunodeficiency virus or acquired immunodeficiency syndrome.  
140.30  For purposes of this section, "homeless adult" means a person 
140.31  who is living on the street or in a shelter or is evicted from a 
140.32  dwelling unit or discharged from a regional treatment center, 
140.33  community hospital, or residential treatment program and has no 
140.34  appropriate housing available and lacks the resources and 
140.35  support necessary to access appropriate housing.  At least 70 
140.36  percent of the supportive housing units must serve homeless 
141.1   adults with mental illness, substance abuse problems, or human 
141.2   immunodeficiency virus or acquired immunodeficiency syndrome who 
141.3   are about to be or, within the previous six months, has been 
141.4   discharged from a regional treatment center, or a 
141.5   state-contracted psychiatric bed in a community hospital, or a 
141.6   residential mental health or chemical dependency treatment 
141.7   program.  If a person meets the requirements of subdivision 1, 
141.8   paragraph (a), and receives a federal Section 8 or state housing 
141.9   subsidy, the group residential housing rate for that person is 
141.10  limited to the supplementary rate under section 256I.05, 
141.11  subdivision 1a, and is determined by subtracting the amount of 
141.12  the person's countable income that exceeds the MSA equivalent 
141.13  rate from the group residential housing supplementary rate.  A 
141.14  resident in a demonstration project site who no longer 
141.15  participates in the demonstration program shall retain 
141.16  eligibility for a group residential housing payment in an amount 
141.17  determined under section 256I.06, subdivision 8, using the MSA 
141.18  equivalent rate.  Service funding under section 256I.05, 
141.19  subdivision 1a, will end June 30, 1997, if federal matching 
141.20  funds are available and the services can be provided through a 
141.21  managed care entity.  If federal matching funds are not 
141.22  available, then service funding will continue under section 
141.23  256I.05, subdivision 1a.  
141.24     (b) A county agency may enter into a group residential 
141.25  housing agreement for beds with rates in excess of the MSA 
141.26  equivalent rate in addition to those currently covered under a 
141.27  group residential housing agreement if the additional beds are 
141.28  only a replacement of beds with rates in excess of the MSA 
141.29  equivalent rate which have been made available due to closure of 
141.30  a setting, a change of licensure or certification which removes 
141.31  the beds from group residential housing payment, or as a result 
141.32  of the downsizing of a group residential housing setting.  The 
141.33  transfer of available beds from one county to another can only 
141.34  occur by the agreement of both counties. 
141.35     Sec. 20.  Minnesota Statutes 1996, section 256I.04, is 
141.36  amended by adding a subdivision to read: 
142.1      Subd. 4.  [RENTAL ASSISTANCE.] For participants in the 
142.2   Minnesota supportive housing demonstration program under 
142.3   subdivision 3, paragraph (a), clause (5), notwithstanding the 
142.4   provisions of section 256I.06, subdivision 8, the amount of the 
142.5   group residential housing payment for room and board must be 
142.6   calculated by subtracting 30 percent of the recipient's adjusted 
142.7   income as defined by the United States Department of Housing and 
142.8   Urban Development for the Section 8 program from the fair market 
142.9   rent established for the recipient's living unit by the federal 
142.10  Department of Housing and Urban Development.  This payment shall 
142.11  be regarded as a state housing subsidy for the purposes of 
142.12  subdivision 3.  Notwithstanding the provisions of section 
142.13  256I.06, subdivision 6, the recipient's countable income will 
142.14  only be adjusted when a change of greater than $100 in a month 
142.15  occurs or upon annual redetermination of eligibility, whichever 
142.16  is sooner.  The commissioner is directed to study the 
142.17  feasibility of developing a rental assistance program to serve 
142.18  persons traditionally served in group residential housing 
142.19  settings and report to the legislature by February 15, 1999. 
142.20     Sec. 21.  Minnesota Statutes 1996, section 256I.05, 
142.21  subdivision 2, is amended to read: 
142.22     Subd. 2.  [MONTHLY RATES; EXEMPTIONS.] The maximum group 
142.23  residential housing rate does not apply to a residence that on 
142.24  August 1, 1984, was licensed by the commissioner of health only 
142.25  as a boarding care home, certified by the commissioner of health 
142.26  as an intermediate care facility, and licensed by the 
142.27  commissioner of human services under Minnesota Rules, parts 
142.28  9520.0500 to 9520.0690.  Notwithstanding the provisions of 
142.29  subdivision 1c, the rate paid to a facility reimbursed under 
142.30  this subdivision shall be determined under Minnesota Rules, 
142.31  parts 9510.0010 to 9510.0480 section 256B.431, or under section 
142.32  256B.434 if the facility is accepted by the commissioner for 
142.33  participation in the alternative payment demonstration project. 
142.34     Sec. 22.  Laws 1997, chapter 207, section 7, is amended to 
142.35  read: 
142.36     Sec. 7.  [PRIVATE SALE OF TAX-FORFEITED LAND; CARLTON 
143.1   COUNTY.] 
143.2      (a) Notwithstanding Minnesota Statutes, sections 92.45 and 
143.3   282.018, subdivision 1, and the public sale provisions of 
143.4   Minnesota Statutes, chapter 282, Carlton county may sell by 
143.5   private sale the tax-forfeited land described in paragraph (d) 
143.6   under the remaining provisions of Minnesota Statutes, chapter 
143.7   282. 
143.8      (b) The land described in paragraph (d) may be sold by 
143.9   private sale.  The consideration for the conveyance must include 
143.10  the taxes due on the property and any penalties, interest, and 
143.11  costs shall be the appraised value of the land.  If the lands 
143.12  are sold, the conveyance must reserve to the state a 
143.13  conservation perpetual easement, in a form prescribed by the 
143.14  commissioner of natural resources, for the land within 100 feet 
143.15  of the ordinary high water level of Slaughterhouse creek for 
143.16  public angler access and stream habitat protection and 
143.17  enhancement for the benefit of the state of Minnesota, 
143.18  department of natural resources, over the following lands: 
143.19     A strip of land lying in the North 6.66 acres of the West 
143.20  Half of the Northeast Quarter of the Southwest Quarter of 
143.21  Section 6, Township 48 North, Range 16 West, Carlton county.  
143.22  Said strip lying 100 feet on each side of the centerline of 
143.23  Slaughterhouse Creek. 
143.24     (c) The conveyance must be in a form approved by the 
143.25  attorney general. 
143.26     (d) The land to be conveyed is located in Carlton county 
143.27  and is described as: 
143.28     North 6.66 acres of the West Half of the Northeast Quarter 
143.29  of the Southwest Quarter, subject to pipeline easement, Section 
143.30  6, Township 48 North, Range 16 West, City of Carlton. 
143.31     (e) Carlton county has determined that this sale best 
143.32  serves the land management interests of Carlton county. 
143.33     Sec. 23.  [RECOMMENDATIONS TO IMPLEMENT NEW REIMBURSEMENT 
143.34  SYSTEM.] 
143.35     (a) By January 15, 1999, the commissioner shall make 
143.36  recommendations to the chairs of the health and human services 
144.1   policy and fiscal committees on the repeal of specific statutes 
144.2   and rules as well as any other additional recommendations 
144.3   related to implementation of sections 11 and 12. 
144.4      (b) In developing recommendations for nursing facility 
144.5   reimbursement, the commissioner shall consider making each 
144.6   nursing facility's total payment rates, both operating and 
144.7   property rate components, prospective.  The commissioner shall 
144.8   involve nursing facility industry and consumer representatives 
144.9   in the development of these recommendations. 
144.10     (c) In making recommendations for ICF/MR reimbursement, the 
144.11  commissioner may consider methods of establishing payment rates 
144.12  that take into account individual client costs and needs, 
144.13  include provisions to establish links between performance 
144.14  indicators and reimbursement and other performance incentives, 
144.15  and allow local control over resources necessary for local 
144.16  agencies to set rates and contract with ICF/MR facilities.  In 
144.17  addition, the commissioner may establish methods that provide 
144.18  information to consumers regarding service quality as measured 
144.19  by performance indicators.  The commissioner shall involve 
144.20  ICF/MR industry and consumer representatives in the development 
144.21  of these recommendations. 
144.22     Sec. 24.  [APPROVAL EXTENDED.] 
144.23     Notwithstanding Minnesota Statutes, section 144A.073, 
144.24  subdivision 3, the commissioner of health shall grant an 
144.25  additional 18 months of approval for a proposed exception to the 
144.26  nursing home licensure and certification moratorium, if the 
144.27  proposal is to replace a 96-bed nursing home facility in Carlton 
144.28  county and if initial approval for the proposal was granted in 
144.29  November 1996. 
144.30     Sec. 25.  [EFFECTIVE DATE.] 
144.31     Sections 1, 3, 22, and 24 are effective the day following 
144.32  final enactment. 
144.33                             ARTICLE 4 
144.34            HEALTH CARE PROGRAMS, INCLUDING MA AND GAMC 
144.35     Section 1.  Minnesota Statutes 1997 Supplement, section 
144.36  171.29, subdivision 2, is amended to read: 
145.1      Subd. 2.  [FEES, ALLOCATION.] (a) A person whose driver's 
145.2   license has been revoked as provided in subdivision 1, except 
145.3   under section 169.121 or 169.123, shall pay a $30 fee before the 
145.4   driver's license is reinstated. 
145.5      (b) A person whose driver's license has been revoked as 
145.6   provided in subdivision 1 under section 169.121 or 169.123 shall 
145.7   pay a $250 fee plus a $10 surcharge before the driver's license 
145.8   is reinstated.  The $250 fee is to be credited as follows: 
145.9      (1) Twenty percent shall be credited to the trunk highway 
145.10  fund. 
145.11     (2) Fifty-five percent shall be credited to the general 
145.12  fund. 
145.13     (3) Eight percent shall be credited to a separate account 
145.14  to be known as the bureau of criminal apprehension account.  
145.15  Money in this account may be appropriated to the commissioner of 
145.16  public safety and the appropriated amount shall be apportioned 
145.17  80 percent for laboratory costs and 20 percent for carrying out 
145.18  the provisions of section 299C.065. 
145.19     (4) Twelve percent shall be credited to a separate account 
145.20  to be known as the alcohol-impaired driver education account.  
145.21  Money in the account is appropriated as follows: 
145.22     (i) The first $200,000 in a fiscal year is to the 
145.23  commissioner of children, families, and learning for programs in 
145.24  elementary and secondary schools. 
145.25     (ii) The remainder credited in a fiscal year is 
145.26  appropriated to the commissioner of transportation to be spent 
145.27  as grants to the Minnesota highway safety center at St. Cloud 
145.28  State University for programs relating to alcohol and highway 
145.29  safety education in elementary and secondary schools. 
145.30     (5) Five percent shall be credited to a separate account to 
145.31  be known as the traumatic brain injury and spinal cord injury 
145.32  account.  $100,000 is annually appropriated from the account to 
145.33  the commissioner of human services for traumatic brain injury 
145.34  case management services.  The remaining money in the account is 
145.35  annually appropriated to the commissioner of health to be used 
145.36  as follows:  35 percent for a contract with a qualified 
146.1   community-based organization to provide information, resources, 
146.2   and support to assist persons with traumatic brain injury and 
146.3   their families to access services, and 65 percent to establish 
146.4   and maintain the traumatic brain injury and spinal cord injury 
146.5   registry created in section 144.662 and to reimburse the 
146.6   commissioner of economic security for the reasonable cost of 
146.7   services provided under section 268A.03, clause (o).  For the 
146.8   purposes of this clause, a "qualified community-based 
146.9   organization" is a private, not-for-profit organization of 
146.10  consumers of traumatic brain injury services and their family 
146.11  members.  The organization must be registered with the United 
146.12  States Internal Revenue Service under the provisions of section 
146.13  501(c)(3) as a tax exempt organization and must have as its 
146.14  purposes:  
146.15     (i) the promotion of public, family, survivor, and 
146.16  professional awareness of the incidence and consequences of 
146.17  traumatic brain injury; 
146.18     (ii) the provision of a network of support for persons with 
146.19  traumatic brain injury, their families, and friends; 
146.20     (iii) the development and support of programs and services 
146.21  to prevent traumatic brain injury; 
146.22     (iv) the establishment of education programs for persons 
146.23  with traumatic brain injury; and 
146.24     (v) the empowerment of persons with traumatic brain injury 
146.25  through participation in its governance. 
146.26     No patient's name, identifying information or identifiable 
146.27  medical data will be disclosed to the organization without the 
146.28  informed voluntary written consent of the patient or patient's 
146.29  guardian, or if the patient is a minor, of the parent or 
146.30  guardian of the patient. 
146.31     (c) The $10 surcharge shall be credited to a separate 
146.32  account to be known as the remote electronic alcohol monitoring 
146.33  pilot program account.  The commissioner shall transfer the 
146.34  balance of this account to the commissioner of finance on a 
146.35  monthly basis for deposit in the general fund. 
146.36     Sec. 2.  Minnesota Statutes 1996, section 245.462, 
147.1   subdivision 4, is amended to read: 
147.2      Subd. 4.  [CASE MANAGER.] (a) "Case manager" means an 
147.3   individual employed by the county or other entity authorized by 
147.4   the county board to provide case management services specified 
147.5   in section 245.4711.  A case manager must have a bachelor's 
147.6   degree in one of the behavioral sciences or related fields from 
147.7   an accredited college or university and have at least 2,000 
147.8   hours of supervised experience in the delivery of services to 
147.9   adults with mental illness, must be skilled in the process of 
147.10  identifying and assessing a wide range of client needs, and must 
147.11  be knowledgeable about local community resources and how to use 
147.12  those resources for the benefit of the client.  The case manager 
147.13  shall meet in person with a mental health professional at least 
147.14  once each month to obtain clinical supervision of the case 
147.15  manager's activities.  Case managers with a bachelor's degree 
147.16  but without 2,000 hours of supervised experience in the delivery 
147.17  of services to adults with mental illness must complete 40 hours 
147.18  of training approved by the commissioner of human services in 
147.19  case management skills and in the characteristics and needs of 
147.20  adults with serious and persistent mental illness and must 
147.21  receive clinical supervision regarding individual service 
147.22  delivery from a mental health professional at least once each 
147.23  week until the requirement of 2,000 hours of supervised 
147.24  experience is met.  Clinical supervision must be documented in 
147.25  the client record. 
147.26     Until June 30, 1999, a refugee an immigrant who does not 
147.27  have the qualifications specified in this subdivision may 
147.28  provide case management services to adult refugees immigrants 
147.29  with serious and persistent mental illness who are members of 
147.30  the same ethnic group as the case manager if the person:  (1) is 
147.31  actively pursuing credits toward the completion of a bachelor's 
147.32  degree in one of the behavioral sciences or a related field from 
147.33  an accredited college or university; (2) completes 40 hours of 
147.34  training as specified in this subdivision; and (3) receives 
147.35  clinical supervision at least once a week until the requirements 
147.36  of obtaining a bachelor's degree and 2,000 hours of supervised 
148.1   experience this subdivision are met. 
148.2      (b) The commissioner may approve waivers submitted by 
148.3   counties to allow case managers without a bachelor's degree but 
148.4   with 6,000 hours of supervised experience in the delivery of 
148.5   services to adults with mental illness if the person: 
148.6      (1) meets the qualifications for a mental health 
148.7   practitioner in subdivision 26; 
148.8      (2) has completed 40 hours of training approved by the 
148.9   commissioner in case management skills and in the 
148.10  characteristics and needs of adults with serious and persistent 
148.11  mental illness; and 
148.12     (3) demonstrates that the 6,000 hours of supervised 
148.13  experience are in identifying functional needs of persons with 
148.14  mental illness, coordinating assessment information and making 
148.15  referrals to appropriate service providers, coordinating a 
148.16  variety of services to support and treat persons with mental 
148.17  illness, and monitoring to ensure appropriate provision of 
148.18  services.  The county board is responsible to verify that all 
148.19  qualifications, including content of supervised experience, have 
148.20  been met.  
148.21     Sec. 3.  Minnesota Statutes 1996, section 245.462, 
148.22  subdivision 8, is amended to read: 
148.23     Subd. 8.  [DAY TREATMENT SERVICES.] "Day treatment," "day 
148.24  treatment services," or "day treatment program" means a 
148.25  structured program of treatment and care provided to an adult in 
148.26  or by:  (1) a hospital accredited by the joint commission on 
148.27  accreditation of health organizations and licensed under 
148.28  sections 144.50 to 144.55; (2) a community mental health center 
148.29  under section 245.62; or (3) an entity that is under contract 
148.30  with the county board to operate a program that meets the 
148.31  requirements of section 245.4712, subdivision 2, and Minnesota 
148.32  Rules, parts 9505.0170 to 9505.0475.  Day treatment consists of 
148.33  group psychotherapy and other intensive therapeutic services 
148.34  that are provided at least one day a week for a minimum 
148.35  three-hour time block by a multidisciplinary staff under the 
148.36  clinical supervision of a mental health professional.  The 
149.1   services are aimed at stabilizing the adult's mental health 
149.2   status, providing mental health services, and developing and 
149.3   improving the adult's independent living and socialization 
149.4   skills.  The goal of day treatment is to reduce or relieve 
149.5   mental illness and to enable the adult to live in the 
149.6   community.  Day treatment services are not a part of inpatient 
149.7   or residential treatment services.  Day treatment services are 
149.8   distinguished from day care by their structured therapeutic 
149.9   program of psychotherapy services.  The commissioner may limit 
149.10  medical assistance reimbursement for day treatment to 15 hours 
149.11  per week per person instead of the three hours per day per 
149.12  person specified in Minnesota Rules, part 9505.0323, subpart 15. 
149.13     Sec. 4.  Minnesota Statutes 1996, section 245.4871, 
149.14  subdivision 4, is amended to read: 
149.15     Subd. 4.  [CASE MANAGER.] (a) "Case manager" means an 
149.16  individual employed by the county or other entity authorized by 
149.17  the county board to provide case management services specified 
149.18  in subdivision 3 for the child with severe emotional disturbance 
149.19  and the child's family.  A case manager must have experience and 
149.20  training in working with children. 
149.21     (b) A case manager must: 
149.22     (1) have at least a bachelor's degree in one of the 
149.23  behavioral sciences or a related field from an accredited 
149.24  college or university; 
149.25     (2) have at least 2,000 hours of supervised experience in 
149.26  the delivery of mental health services to children; 
149.27     (3) have experience and training in identifying and 
149.28  assessing a wide range of children's needs; and 
149.29     (4) be knowledgeable about local community resources and 
149.30  how to use those resources for the benefit of children and their 
149.31  families. 
149.32     (c) The case manager may be a member of any professional 
149.33  discipline that is part of the local system of care for children 
149.34  established by the county board. 
149.35     (d) The case manager must meet in person with a mental 
149.36  health professional at least once each month to obtain clinical 
150.1   supervision. 
150.2      (e) Case managers with a bachelor's degree but without 
150.3   2,000 hours of supervised experience in the delivery of mental 
150.4   health services to children with emotional disturbance must: 
150.5      (1) begin 40 hours of training approved by the commissioner 
150.6   of human services in case management skills and in the 
150.7   characteristics and needs of children with severe emotional 
150.8   disturbance before beginning to provide case management 
150.9   services; and 
150.10     (2) receive clinical supervision regarding individual 
150.11  service delivery from a mental health professional at least once 
150.12  each week until the requirement of 2,000 hours of experience is 
150.13  met. 
150.14     (f) Clinical supervision must be documented in the child's 
150.15  record.  When the case manager is not a mental health 
150.16  professional, the county board must provide or contract for 
150.17  needed clinical supervision. 
150.18     (g) The county board must ensure that the case manager has 
150.19  the freedom to access and coordinate the services within the 
150.20  local system of care that are needed by the child. 
150.21     (h) Until June 30, 1999, a refugee an immigrant who does 
150.22  not have the qualifications specified in this subdivision may 
150.23  provide case management services to child refugees immigrants 
150.24  with severe emotional disturbance of the same ethnic group as 
150.25  the refugee immigrant if the person:  
150.26     (1) is actively pursuing credits toward the completion of a 
150.27  bachelor's degree in one of the behavioral sciences or related 
150.28  fields at an accredited college or university; 
150.29     (2) completes 40 hours of training as specified in this 
150.30  subdivision; and 
150.31     (3) receives clinical supervision at least once a week 
150.32  until the requirements of obtaining a bachelor's degree and 
150.33  2,000 hours of supervised experience are met. 
150.34     (i) The commissioner may approve waivers submitted by 
150.35  counties to allow case managers without a bachelor's degree but 
150.36  with 6,000 hours of supervised experience in the delivery of 
151.1   services to children with severe emotional disturbance if the 
151.2   person: 
151.3      (1) meets the qualifications for a mental health 
151.4   practitioner in subdivision 26; 
151.5      (2) has completed 40 hours of training approved by the 
151.6   commissioner in case management skills and in the 
151.7   characteristics and needs of children with severe emotional 
151.8   disturbance; and 
151.9      (3) demonstrates that the 6,000 hours of supervised 
151.10  experience are in identifying functional needs of children with 
151.11  severe emotional disturbance, coordinating assessment 
151.12  information and making referrals to appropriate service 
151.13  providers, coordinating a variety of services to support and 
151.14  treat children with severe emotional disturbance, and monitoring 
151.15  to ensure appropriate provision of services.  The county board 
151.16  is responsible to verify that all qualifications, including 
151.17  content of supervised experience, have been met. 
151.18     Sec. 5.  Minnesota Statutes 1996, section 256.01, is 
151.19  amended by adding a subdivision to read: 
151.20     Subd. 15.  [INFORMATION FOR PERSONS WITH LIMITED 
151.21  ENGLISH-LANGUAGE PROFICIENCY.] By July 1, 1998, the commissioner 
151.22  shall implement a procedure for public assistance applicants and 
151.23  recipients to identify a language preference other than English 
151.24  in order to receive information pertaining to the public 
151.25  assistance programs in that preferred language. 
151.26     Sec. 6.  [256.9364] [POST-KIDNEY TRANSPLANT DRUG PROGRAM.] 
151.27     Subdivision 1.  [ESTABLISHMENT.] The commissioner of human 
151.28  services shall establish and administer a program to pay for 
151.29  costs of drugs prescribed exclusively for post-kidney transplant 
151.30  maintenance when those costs are not otherwise reimbursed by a 
151.31  third-party payer.  The commissioner may contract with a 
151.32  nonprofit entity to administer this program.  
151.33     Subd. 2.  [ELIGIBILITY REQUIREMENTS.] To be eligible for 
151.34  the program, an applicant must satisfy the following 
151.35  requirements:  
151.36     (1) the applicant's family gross income must not exceed 275 
152.1   percent of the federal poverty level; and 
152.2      (2) the applicant must be a Minnesota resident who has 
152.3   resided in Minnesota for at least 12 months.  
152.4   An applicant shall not be excluded because the applicant 
152.5   received the transplant outside the state of Minnesota, so long 
152.6   as the other requirements are met. 
152.7      Subd. 3.  [PAYMENT AMOUNTS.] (a) The amount of the payments 
152.8   made for each eligible recipient shall be based on the following:
152.9      (1) available funds; and 
152.10     (2) the cost of the post-kidney transplant maintenance 
152.11  drugs.  
152.12     (b) The payment rate under this program must be no greater 
152.13  than the medical assistance reimbursement rate for the 
152.14  prescribed drug. 
152.15     (c) Payments shall be made to or on behalf of an eligible 
152.16  recipient for the cost of the post-kidney transplant maintenance 
152.17  drugs that is not covered, reimbursed, or eligible for 
152.18  reimbursement by any other third party or government entity, 
152.19  including, but not limited to, private or group health 
152.20  insurance, medical assistance, Medicare, the Veterans 
152.21  Administration, the senior citizen drug program established 
152.22  under section 256.955, or under any waiver arrangement received 
152.23  by the state to provide a prescription drug benefit for 
152.24  qualified Medicare beneficiaries or service-limited Medicare 
152.25  beneficiaries.  
152.26     (d) The commissioner may restrict or categorize payments to 
152.27  meet the appropriation allocated for this program. 
152.28     (e) Any cost of the post-kidney transplant maintenance 
152.29  drugs that is not reimbursed under this program is the 
152.30  responsibility of the program recipient. 
152.31     Subd. 4.  [DRUG FORMULARY.] The commissioner shall maintain 
152.32  a drug formulary that includes all drugs eligible for 
152.33  reimbursement by the program.  The commissioner may use the drug 
152.34  formulary established under section 256B.0625, subdivision 13.  
152.35  The commissioner shall establish an internal review procedure 
152.36  for updating the formulary that allows for the addition and 
153.1   deletion of drugs to the formulary.  The drug formulary must be 
153.2   reviewed at least quarterly per fiscal year. 
153.3      Subd. 5.  [PRIVATE DONATIONS.] The commissioner may accept 
153.4   funding from other public or private sources. 
153.5      Subd. 6.  [SUNSET.] This program expires on July 1, 2000. 
153.6      Sec. 7.  Minnesota Statutes 1997 Supplement, section 
153.7   256.9657, subdivision 3, is amended to read: 
153.8      Subd. 3.  [HEALTH MAINTENANCE ORGANIZATION; COMMUNITY 
153.9   INTEGRATED SERVICE NETWORK SURCHARGE.] (a) Effective October 1, 
153.10  1992, each health maintenance organization with a certificate of 
153.11  authority issued by the commissioner of health under chapter 62D 
153.12  and each community integrated service network licensed by the 
153.13  commissioner under chapter 62N shall pay to the commissioner of 
153.14  human services a surcharge equal to six-tenths of one percent of 
153.15  the total premium revenues of the health maintenance 
153.16  organization or community integrated service network as reported 
153.17  to the commissioner of health according to the schedule in 
153.18  subdivision 4.  
153.19     (b) For purposes of this subdivision, total premium revenue 
153.20  means: 
153.21     (1) premium revenue recognized on a prepaid basis from 
153.22  individuals and groups for provision of a specified range of 
153.23  health services over a defined period of time which is normally 
153.24  one month, excluding premiums paid to a health maintenance 
153.25  organization or community integrated service network from the 
153.26  Federal Employees Health Benefit Program; 
153.27     (2) premiums from Medicare wrap-around subscribers for 
153.28  health benefits which supplement Medicare coverage; 
153.29     (3) Medicare revenue, as a result of an arrangement between 
153.30  a health maintenance organization or a community integrated 
153.31  service network and the health care financing administration of 
153.32  the federal Department of Health and Human Services, for 
153.33  services to a Medicare beneficiary, excluding Medicare revenue 
153.34  that states are prohibited from taxing under sections 4001 and 
153.35  4002 of Public Law Number 105-33 received by a health 
153.36  maintenance organization or community integrated service network 
154.1   through risk sharing or Medicare Choice Plus contracts; and 
154.2      (4) medical assistance revenue, as a result of an 
154.3   arrangement between a health maintenance organization or 
154.4   community integrated service network and a Medicaid state 
154.5   agency, for services to a medical assistance beneficiary. 
154.6      If advance payments are made under clause (1) or (2) to the 
154.7   health maintenance organization or community integrated service 
154.8   network for more than one reporting period, the portion of the 
154.9   payment that has not yet been earned must be treated as a 
154.10  liability. 
154.11     (c) When a health maintenance organization or community 
154.12  integrated service network merges or consolidates with or is 
154.13  acquired by another health maintenance organization or community 
154.14  integrated service network, the surviving corporation or the new 
154.15  corporation shall be responsible for the annual surcharge 
154.16  originally imposed on each of the entities or corporations 
154.17  subject to the merger, consolidation, or acquisition, regardless 
154.18  of whether one of the entities or corporations does not retain a 
154.19  certificate of authority under chapter 62D or a license under 
154.20  chapter 62N. 
154.21     (d) Effective July 1 of each year, the surviving 
154.22  corporation's or the new corporation's surcharge shall be based 
154.23  on the revenues earned in the second previous calendar year by 
154.24  all of the entities or corporations subject to the merger, 
154.25  consolidation, or acquisition regardless of whether one of the 
154.26  entities or corporations does not retain a certificate of 
154.27  authority under chapter 62D or a license under chapter 62N until 
154.28  the total premium revenues of the surviving corporation include 
154.29  the total premium revenues of all the merged entities as 
154.30  reported to the commissioner of health. 
154.31     (e) When a health maintenance organization or community 
154.32  integrated service network, which is subject to liability for 
154.33  the surcharge under this chapter, transfers, assigns, sells, 
154.34  leases, or disposes of all or substantially all of its property 
154.35  or assets, liability for the surcharge imposed by this chapter 
154.36  is imposed on the transferee, assignee, or buyer of the health 
155.1   maintenance organization or community integrated service network.
155.2      (f) In the event a health maintenance organization or 
155.3   community integrated service network converts its licensure to a 
155.4   different type of entity subject to liability for the surcharge 
155.5   under this chapter, but survives in the same or substantially 
155.6   similar form, the surviving entity remains liable for the 
155.7   surcharge regardless of whether one of the entities or 
155.8   corporations does not retain a certificate of authority under 
155.9   chapter 62D or a license under chapter 62N. 
155.10     (g) The surcharge assessed to a health maintenance 
155.11  organization or community integrated service network ends when 
155.12  the entity ceases providing services for premiums and the 
155.13  cessation is not connected with a merger, consolidation, 
155.14  acquisition, or conversion. 
155.15     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
155.16  256.9685, subdivision 1, is amended to read: 
155.17     Subdivision 1.  [AUTHORITY.] The commissioner shall 
155.18  establish procedures for determining medical assistance and 
155.19  general assistance medical care payment rates under a 
155.20  prospective payment system for inpatient hospital services in 
155.21  hospitals that qualify as vendors of medical assistance.  The 
155.22  commissioner shall establish, by rule, procedures for 
155.23  implementing this section and sections 256.9686, 256.969, and 
155.24  256.9695.  The medical assistance payment rates must be based on 
155.25  methods and standards that the commissioner finds are adequate 
155.26  to provide for the costs that must be incurred for the care of 
155.27  recipients in efficiently and economically operated hospitals.  
155.28  Services must meet the requirements of section 256B.04, 
155.29  subdivision 15, or 256D.03, subdivision 7, paragraph (b), to be 
155.30  eligible for payment. 
155.31     Sec. 9.  Minnesota Statutes 1996, section 256.969, 
155.32  subdivision 16, is amended to read: 
155.33     Subd. 16.  [INDIAN HEALTH SERVICE FACILITIES.] Indian 
155.34  health service Facilities of the Indian health service and 
155.35  facilities operated by a tribe or tribal organization under 
155.36  funding authorized by title III of the Indian Self-Determination 
156.1   and Education Assistance Act, Public Law Number 93-638, or by 
156.2   United States Code, title 25, chapter 14, subchapter II, 
156.3   sections 450f to 450n, are exempt from the rate establishment 
156.4   methods required by this section and shall be reimbursed at 
156.5   charges as limited to the amount allowed under federal law paid 
156.6   according to the rate published by the United States assistant 
156.7   secretary for health under authority of United States Code, 
156.8   title 42, sections 248A and 248B.  
156.9      Sec. 10.  Minnesota Statutes 1996, section 256.969, 
156.10  subdivision 17, is amended to read: 
156.11     Subd. 17.  [OUT-OF-STATE HOSPITALS IN LOCAL TRADE AREAS.] 
156.12  Out-of-state hospitals that are located within a Minnesota local 
156.13  trade area and that have more than 20 admissions in the base 
156.14  year shall have rates established using the same procedures and 
156.15  methods that apply to Minnesota hospitals.  For this subdivision 
156.16  and subdivision 18, local trade area means a county contiguous 
156.17  to Minnesota and located in a metropolitan statistical area as 
156.18  determined by Medicare for October 1 prior to the most current 
156.19  rebased rate year.  Hospitals that are not required by law to 
156.20  file information in a format necessary to establish rates shall 
156.21  have rates established based on the commissioner's estimates of 
156.22  the information.  Relative values of the diagnostic categories 
156.23  shall not be redetermined under this subdivision until required 
156.24  by rule.  Hospitals affected by this subdivision shall then be 
156.25  included in determining relative values.  However, hospitals 
156.26  that have rates established based upon the commissioner's 
156.27  estimates of information shall not be included in determining 
156.28  relative values.  This subdivision is effective for hospital 
156.29  fiscal years beginning on or after July 1, 1988.  A hospital 
156.30  shall provide the information necessary to establish rates under 
156.31  this subdivision at least 90 days before the start of the 
156.32  hospital's fiscal year. 
156.33     Sec. 11.  Minnesota Statutes 1996, section 256B.03, 
156.34  subdivision 3, is amended to read: 
156.35     Subd. 3.  [AMERICAN INDIAN HEALTH FUNDING TRIBAL PURCHASING 
156.36  MODEL.] (a) Notwithstanding subdivision 1 and sections 256B.0625 
157.1   and 256D.03, subdivision 4, paragraph (f) (i), the commissioner 
157.2   may make payments to federally recognized Indian tribes with a 
157.3   reservation in the state to provide medical assistance and 
157.4   general assistance medical care to Indians, as defined under 
157.5   federal law, who reside on or near the reservation.  The 
157.6   payments may be made in the form of a block grant or other 
157.7   payment mechanism determined in consultation with the tribe.  
157.8   Any alternative payment mechanism agreed upon by the tribes and 
157.9   the commissioner under this subdivision is not dependent upon 
157.10  county or health plan agreement but is intended to create a 
157.11  direct payment mechanism between the state and the tribe for the 
157.12  administration of the medical assistance program and general 
157.13  assistance medical care programs, and for covered services.  
157.14     (b) A tribe that implements a purchasing model under this 
157.15  subdivision shall report to the commissioner at least annually 
157.16  on the operation of the model.  The commissioner and the tribe 
157.17  shall cooperatively determine the data elements, format, and 
157.18  timetable for the report. 
157.19     (c) For purposes of this subdivision, "Indian tribe" means 
157.20  a tribe, band, or nation, or other organized group or community 
157.21  of Indians that is recognized as eligible for the special 
157.22  programs and services provided by the United States to Indians 
157.23  because of their status as Indians and for which a reservation 
157.24  exists as is consistent with Public Law Number 100-485, as 
157.25  amended. 
157.26     (d) Payments under this subdivision may not result in an 
157.27  increase in expenditures that would not otherwise occur in the 
157.28  medical assistance program under this chapter or the general 
157.29  assistance medical care program under chapter 256D. 
157.30     Sec. 12.  [256B.038] [PROVIDER RATE INCREASES AFTER JUNE 
157.31  30, 1999.] 
157.32     (a) For fiscal years beginning on or after July 1, 1999, 
157.33  the commissioner of finance shall include an annual inflationary 
157.34  adjustment in payment rates for the services listed in paragraph 
157.35  (b) as a budget change request in each biennial detailed 
157.36  expenditure budget submitted to the legislature under section 
158.1   16A.11.  The adjustment shall be accomplished by indexing the 
158.2   rates in effect for inflation based on the change in the 
158.3   Consumer Price Index-All Items (United States city 
158.4   average)(CPI-U) as forecasted by Data Resources, Inc., in the 
158.5   fourth quarter of the prior year for the calendar year during 
158.6   which the rate increase occurs. 
158.7      (b) Within the limits of appropriations specifically for 
158.8   this purpose, the commissioner shall apply the rate increases in 
158.9   paragraph (a) to home and community-based waiver services for 
158.10  persons with mental retardation or related conditions under 
158.11  section 256B.501; home and community-based waiver services for 
158.12  the elderly under section 256B.0915; waivered services under 
158.13  community alternatives for disabled individuals under section 
158.14  256B.49; community alternative care waivered services under 
158.15  section 256B.49; traumatic brain injury waivered services under 
158.16  section 256B.49; nursing services and home health services under 
158.17  section 256B.0625, subdivision 6a; personal care services and 
158.18  nursing supervision of personal care services under section 
158.19  256B.0625, subdivision 19a; private duty nursing services under 
158.20  section 256B.0625, subdivision 7; day training and habilitation 
158.21  services for adults with mental retardation or related 
158.22  conditions under sections 252.40 to 252.46; physical therapy 
158.23  services under sections 256B.0625, subdivision 8, and 256D.03, 
158.24  subdivision 4; occupational therapy services under sections 
158.25  256B.0625, subdivision 8a, and 256D.03, subdivision 4; 
158.26  speech-language therapy services under section 256D.03, 
158.27  subdivision 4, and Minnesota Rules, part 9505.0390; respiratory 
158.28  therapy services under section 256D.03, subdivision 4, and 
158.29  Minnesota Rules, part 9505.0295; physician services under 
158.30  section 256B.0625, subdivision 3; dental services under sections 
158.31  256B.0625, subdivision 9, and 256D.03, subdivision 4; 
158.32  alternative care services under section 256B.0913; adult 
158.33  residential program grants under Minnesota Rules, parts 
158.34  9535.2000 to 9535.3000; adult and family community support 
158.35  grants under Minnesota Rules, parts 9535.1700 to 9535.1760; and 
158.36  semi-independent living services under section 252.275, 
159.1   including SILS funding under county social services grants 
159.2   formerly funded under chapter 256I. 
159.3      (c) The commissioner shall increase prepaid medical 
159.4   assistance program capitation rates as appropriate to reflect 
159.5   the rate increases in this section. 
159.6      (d) In implementing this section, the commissioner shall 
159.7   consider proposing a schedule to equalize rates paid by 
159.8   different programs for the same service. 
159.9      Sec. 13.  Minnesota Statutes 1996, section 256B.055, 
159.10  subdivision 7, is amended to read: 
159.11     Subd. 7.  [AGED, BLIND, OR DISABLED PERSONS.] Medical 
159.12  assistance may be paid for a person who meets the categorical 
159.13  eligibility requirements of the supplemental security income 
159.14  program or, who would meet those requirements except for excess 
159.15  income or assets, and who meets the other eligibility 
159.16  requirements of this section.  
159.17     Effective February 1, 1989, and to the extent allowed by 
159.18  federal law the commissioner shall deduct state and federal 
159.19  income taxes and federal insurance contributions act payments 
159.20  withheld from the individual's earned income in determining 
159.21  eligibility under this subdivision. 
159.22     Sec. 14.  Minnesota Statutes 1996, section 256B.055, is 
159.23  amended by adding a subdivision to read: 
159.24     Subd. 7a.  [SPECIAL CATEGORY FOR DISABLED 
159.25  CHILDREN.] Medical assistance may be paid for a person who is 
159.26  under age 18 and who meets income and asset eligibility 
159.27  requirements of the Supplemental Security Income program if the 
159.28  person was receiving Supplemental Security Income payments on 
159.29  the date of enactment of section 211(a) of Public Law Number 
159.30  104-193, the Personal Responsibility and Work Opportunity Act of 
159.31  1996, and the person would have continued to receive the 
159.32  payments except for the change in the childhood disability 
159.33  criteria in section 211(a) of Public Law Number 104-193. 
159.34     Sec. 15.  Minnesota Statutes 1997 Supplement, section 
159.35  256B.056, subdivision 1a, is amended to read: 
159.36     Subd. 1a.  [INCOME AND ASSETS GENERALLY.] Unless 
160.1   specifically required by state law or rule or federal law or 
160.2   regulation, the methodologies used in counting income and assets 
160.3   to determine eligibility for medical assistance for persons 
160.4   whose eligibility category is based on blindness, disability, or 
160.5   age of 65 or more years, the methodologies for the supplemental 
160.6   security income program shall be used, except that payments made 
160.7   according to a court order for the support of children shall be 
160.8   excluded from income in an amount not to exceed the difference 
160.9   between the applicable income standard used in the state's 
160.10  medical assistance program for aged, blind, and disabled persons 
160.11  and the applicable income standard used in the state's medical 
160.12  assistance program for families with children.  Exclusion of 
160.13  court-ordered child support payments is subject to the condition 
160.14  that if there has been a change in the financial circumstances 
160.15  of the person with the legal obligation to pay support since the 
160.16  support order was entered, the person with the legal obligation 
160.17  to pay support has petitioned for modification of the support 
160.18  order.  For families and children, which includes all other 
160.19  eligibility categories, the methodologies under the state's AFDC 
160.20  plan in effect as of July 16, 1996, as required by the Personal 
160.21  Responsibility and Work Opportunity Reconciliation Act of 1996 
160.22  (PRWORA), Public Law Number 104-193, shall be used.  Effective 
160.23  upon federal approval, in-kind contributions to, and payments 
160.24  made on behalf of, a recipient, by an obligor, in satisfaction 
160.25  of or in addition to a temporary or permanent order for child 
160.26  support or maintenance, shall be considered income to the 
160.27  recipient.  For these purposes, a "methodology" does not include 
160.28  an asset or income standard, or accounting method, or method of 
160.29  determining effective dates. 
160.30     Sec. 16.  Minnesota Statutes 1997 Supplement, section 
160.31  256B.056, subdivision 4, is amended to read: 
160.32     Subd. 4.  [INCOME.] To be eligible for medical assistance, 
160.33  a person must not have, or anticipate receiving, semiannual 
160.34  income in excess of 120 percent of the income standards by 
160.35  family size used under the aid to families with dependent 
160.36  children state plan as of July 16, 1996, as required by the 
161.1   Personal Responsibility and Work Opportunity Reconciliation Act 
161.2   of 1996 (PRWORA), Public Law Number 104-193, except 
161.3   that eligible under section 256B.055, subdivision 7, and 
161.4   families and children may have an income up to 133-1/3 percent 
161.5   of the AFDC income standard in effect under the July 16, 1996, 
161.6   AFDC state plan.  For rate years beginning on or after July 1, 
161.7   1999, the commissioner shall consider increasing the base AFDC 
161.8   standard in effect July 16, 1996, by an amount equal to the 
161.9   percent change in the Consumer Price Index for all urban 
161.10  consumers for the previous October compared to one year 
161.11  earlier.  In computing income to determine eligibility of 
161.12  persons who are not residents of long-term care facilities, the 
161.13  commissioner shall disregard increases in income as required by 
161.14  Public Law Numbers 94-566, section 503; 99-272; and 99-509.  
161.15  Veterans aid and attendance benefits and Veterans Administration 
161.16  unusual medical expense payments are considered income to the 
161.17  recipient. 
161.18     Sec. 17.  Minnesota Statutes 1996, section 256B.057, 
161.19  subdivision 3a, is amended to read: 
161.20     Subd. 3a.  [ELIGIBILITY FOR PAYMENT OF MEDICARE PART B 
161.21  PREMIUMS.] A person who would otherwise be eligible as a 
161.22  qualified Medicare beneficiary under subdivision 3, except the 
161.23  person's income is in excess of the limit, is eligible for 
161.24  medical assistance reimbursement of Medicare Part B premiums if 
161.25  the person's income is less than 110 120 percent of the official 
161.26  federal poverty guidelines for the applicable family size.  The 
161.27  income limit shall increase to 120 percent of the official 
161.28  federal poverty guidelines for the applicable family size on 
161.29  January 1, 1995. 
161.30     Sec. 18.  Minnesota Statutes 1996, section 256B.057, is 
161.31  amended by adding a subdivision to read: 
161.32     Subd. 3b.  [QUALIFYING INDIVIDUALS.] Beginning July 1, 
161.33  1998, to the extent of the federal allocation to Minnesota, a 
161.34  person, who would otherwise be eligible as a qualified Medicare 
161.35  beneficiary under subdivision 3, except that the person's income 
161.36  is in excess of the limit, is eligible as a qualifying 
162.1   individual according to the following criteria: 
162.2      (1) if the person's income is greater than 120 percent, but 
162.3   less than 135 percent of the official federal poverty guidelines 
162.4   for the applicable family size, the person is eligible for 
162.5   medical assistance reimbursement of Medicare Part B premiums; or 
162.6      (2) if the person's income is equal to or greater than 135 
162.7   percent but less than 175 percent of the official federal 
162.8   poverty guidelines for the applicable family size, the person is 
162.9   eligible for medical assistance reimbursement of that portion of 
162.10  the Medicare Part B premium attributable to an increase in Part 
162.11  B expenditures which resulted from the shift of home care 
162.12  services from Medicare Part A to Medicare Part B under Public 
162.13  Law Number 105-33, section 4732, the Balanced Budget Act of 1997.
162.14     The commissioner shall limit enrollment of qualifying 
162.15  individuals under this subdivision according to the requirements 
162.16  of Public Law Number 105-33, section 4732. 
162.17     Sec. 19.  Minnesota Statutes 1997 Supplement, section 
162.18  256B.06, subdivision 4, is amended to read: 
162.19     Subd. 4.  [CITIZENSHIP REQUIREMENTS.] (a) Eligibility for 
162.20  medical assistance is limited to citizens of the United States, 
162.21  qualified noncitizens as defined in this subdivision, and other 
162.22  persons residing lawfully in the United States. 
162.23     (b) "Qualified noncitizen" means a person who meets one of 
162.24  the following immigration criteria: 
162.25     (1) admitted for lawful permanent residence according to 
162.26  United States Code, title 8; 
162.27     (2) admitted to the United States as a refugee according to 
162.28  United States Code, title 8, section 1157; 
162.29     (3) granted asylum according to United States Code, title 
162.30  8, section 1158; 
162.31     (4) granted withholding of deportation according to United 
162.32  States Code, title 8, section 1253(h); 
162.33     (5) paroled for a period of at least one year according to 
162.34  United States Code, title 8, section 1182(d)(5); 
162.35     (6) granted conditional entrant status according to United 
162.36  States Code, title 8, section 1153(a)(7); or 
163.1      (7) determined to be a battered noncitizen by the United 
163.2   States Attorney General according to the Illegal Immigration 
163.3   Reform and Immigrant Responsibility Act of 1996, title V of the 
163.4   Omnibus Consolidated Appropriations Bill, Public Law Number 
163.5   104-200; 
163.6      (8) is a child of a noncitizen determined to be a battered 
163.7   noncitizen by the United States Attorney General according to 
163.8   the Illegal Immigration Reform and Immigrant Responsibility Act 
163.9   of 1996, title V, of the Omnibus Consolidated Appropriations 
163.10  Bill, Public Law Number 104-200; or 
163.11     (9) determined to be a Cuban or Haitian entrant as defined 
163.12  in section 501(e) of Public Law Number 96-422, the Refugee 
163.13  Education Assistance Act of 1980. 
163.14     (c) All qualified noncitizens who were residing in the 
163.15  United States before August 22, 1996, who otherwise meet the 
163.16  eligibility requirements of chapter 256B, are eligible for 
163.17  medical assistance with federal financial participation. 
163.18     (d) All qualified noncitizens who entered the United States 
163.19  on or after August 22, 1996, and who otherwise meet the 
163.20  eligibility requirements of chapter 256B, are eligible for 
163.21  medical assistance with federal financial participation through 
163.22  November 30, 1996. 
163.23     Beginning December 1, 1996, qualified noncitizens who 
163.24  entered the United States on or after August 22, 1996, and who 
163.25  otherwise meet the eligibility requirements of chapter 256B are 
163.26  eligible for medical assistance with federal participation for 
163.27  five years if they meet one of the following criteria: 
163.28     (i) refugees admitted to the United States according to 
163.29  United States Code, title 8, section 1157; 
163.30     (ii) persons granted asylum according to United States 
163.31  Code, title 8, section 1158; 
163.32     (iii) persons granted withholding of deportation according 
163.33  to United States Code, title 8, section 1253(h); 
163.34     (iv) veterans of the United States Armed Forces with an 
163.35  honorable discharge for a reason other than noncitizen status, 
163.36  their spouses and unmarried minor dependent children; or 
164.1      (v) persons on active duty in the United States Armed 
164.2   Forces, other than for training, their spouses and unmarried 
164.3   minor dependent children. 
164.4      Beginning December 1, 1996, qualified noncitizens who do 
164.5   not meet one of the criteria in items (i) to (v) are eligible 
164.6   for medical assistance without federal financial participation 
164.7   as described in paragraph (j). 
164.8      (e) Noncitizens who are not qualified noncitizens as 
164.9   defined in paragraph (b), who are lawfully residing in the 
164.10  United States and who otherwise meet the eligibility 
164.11  requirements of chapter 256B, are eligible for medical 
164.12  assistance under clauses (1) to (3).  These individuals must 
164.13  cooperate with the Immigration and Naturalization Service to 
164.14  pursue any applicable immigration status, including citizenship, 
164.15  that would qualify them for medical assistance with federal 
164.16  financial participation. 
164.17     (1) Persons who were medical assistance recipients on 
164.18  August 22, 1996, are eligible for medical assistance with 
164.19  federal financial participation through December 31, 1996. 
164.20     (2) Beginning January 1, 1997, persons described in clause 
164.21  (1) are eligible for medical assistance without federal 
164.22  financial participation as described in paragraph (j). 
164.23     (3) Beginning December 1, 1996, persons residing in the 
164.24  United States prior to August 22, 1996, who were not receiving 
164.25  medical assistance and persons who arrived on or after August 
164.26  22, 1996, are eligible for medical assistance without federal 
164.27  financial participation as described in paragraph (j). 
164.28     (f) Nonimmigrants who otherwise meet the eligibility 
164.29  requirements of chapter 256B are eligible for the benefits as 
164.30  provided in paragraphs (g) to (i).  For purposes of this 
164.31  subdivision, a "nonimmigrant" is a person in one of the classes 
164.32  listed in United States Code, title 8, section 1101(a)(15). 
164.33     (g) Payment shall also be made for care and services that 
164.34  are furnished to noncitizens, regardless of immigration status, 
164.35  who otherwise meet the eligibility requirements of chapter 256B, 
164.36  if such care and services are necessary for the treatment of an 
165.1   emergency medical condition, except for organ transplants and 
165.2   related care and services and routine prenatal care.  
165.3      (h) For purposes of this subdivision, the term "emergency 
165.4   medical condition" means a medical condition that meets the 
165.5   requirements of United States Code, title 42, section 1396b(v). 
165.6      (i) Pregnant noncitizens who are undocumented or 
165.7   nonimmigrants, who otherwise meet the eligibility requirements 
165.8   of chapter 256B, are eligible for medical assistance payment 
165.9   without federal financial participation for care and services 
165.10  through the period of pregnancy, and 60 days postpartum, except 
165.11  for labor and delivery.  
165.12     (j) Qualified noncitizens as described in paragraph (d), 
165.13  and all other noncitizens lawfully residing in the United States 
165.14  as described in paragraph (e), who are ineligible for medical 
165.15  assistance with federal financial participation and who 
165.16  otherwise meet the eligibility requirements of chapter 256B and 
165.17  of this paragraph, are eligible for medical assistance without 
165.18  federal financial participation.  Qualified noncitizens as 
165.19  described in paragraph (d) are only eligible for medical 
165.20  assistance without federal financial participation for five 
165.21  years from their date of entry into the United States.  
165.22     (k) The commissioner shall submit to the legislature by 
165.23  December 31, 1998, a report on the number of recipients and cost 
165.24  of coverage of care and services made according to paragraphs 
165.25  (i) and (j). 
165.26     Sec. 20.  Minnesota Statutes 1996, section 256B.0625, is 
165.27  amended by adding a subdivision to read: 
165.28     Subd. 3a.  [GENDER REASSIGNMENT SURGERY.] Gender 
165.29  reassignment surgery and other gender reassignment medical 
165.30  procedures including drug therapy for gender reassignment are 
165.31  not covered unless the individual began receiving gender 
165.32  reassignment services prior to July 1, 1998. 
165.33     Sec. 21.  Minnesota Statutes 1996, section 256B.0625, 
165.34  subdivision 7, is amended to read: 
165.35     Subd. 7.  [PRIVATE DUTY NURSING.] Medical assistance covers 
165.36  private duty nursing services in a recipient's home.  Recipients 
166.1   who are authorized to receive private duty nursing services in 
166.2   their home may use approved hours outside of the home during 
166.3   hours when normal life activities take them outside of their 
166.4   home and when, without the provision of private duty nursing, 
166.5   their health and safety would be jeopardized.  To use private 
166.6   duty nursing services at school, the recipient or responsible 
166.7   party must provide written authorization in the care plan 
166.8   identifying the chosen provider and the daily amount of services 
166.9   to be used at school.  Medical assistance does not cover private 
166.10  duty nursing services for residents of a hospital, nursing 
166.11  facility, intermediate care facility, or a health care facility 
166.12  licensed by the commissioner of health, except as authorized in 
166.13  section 256B.64 for ventilator-dependent recipients in hospitals 
166.14  or unless a resident who is otherwise eligible is on leave from 
166.15  the facility and the facility either pays for the private duty 
166.16  nursing services or forgoes the facility per diem for the leave 
166.17  days that private duty nursing services are used.  Total hours 
166.18  of service and payment allowed for services outside the home 
166.19  cannot exceed that which is otherwise allowed in an in-home 
166.20  setting according to section 256B.0627.  All private duty 
166.21  nursing services must be provided according to the limits 
166.22  established under section 256B.0627.  Private duty nursing 
166.23  services may not be reimbursed if the nurse is the spouse of the 
166.24  recipient or the parent or foster care provider of a recipient 
166.25  who is under age 18, or the recipient's legal guardian. 
166.26     Sec. 22.  Minnesota Statutes 1996, section 256B.0625, 
166.27  subdivision 17, is amended to read: 
166.28     Subd. 17.  [TRANSPORTATION COSTS.] (a) Medical assistance 
166.29  covers transportation costs incurred solely for obtaining 
166.30  emergency medical care or transportation costs incurred by 
166.31  nonambulatory persons in obtaining emergency or nonemergency 
166.32  medical care when paid directly to an ambulance company, common 
166.33  carrier, or other recognized providers of transportation 
166.34  services.  For the purpose of this subdivision, a person who is 
166.35  incapable of transport by taxicab or bus shall be considered to 
166.36  be nonambulatory. 
167.1      (b) Medical assistance covers special transportation, as 
167.2   defined in Minnesota Rules, part 9505.0315, subpart 1, item F, 
167.3   if the provider receives and maintains a current physician's 
167.4   order by the recipient's attending physician certifying that the 
167.5   recipient has a physical or mental impairment that would 
167.6   prohibit the recipient from safely accessing and using a bus, 
167.7   taxi, other commercial transportation, or private automobile.  
167.8   Special transportation includes driver-assisted service to 
167.9   eligible individuals.  Driver-assisted service includes 
167.10  passenger pickup at and return to the individual's residence or 
167.11  place of business, assistance with admittance of the individual 
167.12  to the medical facility, and assistance in passenger securement 
167.13  or in securing of wheelchairs or stretchers in the vehicle.  The 
167.14  commissioner shall establish maximum medical assistance 
167.15  reimbursement rates for special transportation services for 
167.16  persons who need a wheelchair lift van or stretcher-equipped 
167.17  vehicle and for those who do not need a wheelchair lift van or 
167.18  stretcher-equipped vehicle.  The average of these two rates per 
167.19  trip must not exceed $14 $15 for the base rate and $1.10 $1.20 
167.20  per mile.  Special transportation provided to nonambulatory 
167.21  persons who do not need a wheelchair lift van or 
167.22  stretcher-equipped vehicle, may be reimbursed at a lower rate 
167.23  than special transportation provided to persons who need a 
167.24  wheelchair lift van or stretcher-equipped vehicle. 
167.25     Sec. 23.  Minnesota Statutes 1996, section 256B.0625, is 
167.26  amended by adding a subdivision to read: 
167.27     Subd. 17a.  [PAYMENT FOR AMBULANCE SERVICES.] Effective for 
167.28  services rendered on or after July 1, 1999, medical assistance 
167.29  payments for ambulance services shall be increased by five 
167.30  percent.  
167.31     Sec. 24.  Minnesota Statutes 1996, section 256B.0625, 
167.32  subdivision 19a, is amended to read: 
167.33     Subd. 19a.  [PERSONAL CARE SERVICES.] Medical assistance 
167.34  covers personal care services in a recipient's home.  To qualify 
167.35  for personal care services, recipients or responsible parties 
167.36  must be able to identify the recipient's needs, direct and 
168.1   evaluate task accomplishment, and provide for health and 
168.2   safety.  Approved hours may be used outside the home when normal 
168.3   life activities take them outside the home and when, without the 
168.4   provision of personal care, their health and safety would be 
168.5   jeopardized.  To use personal care services at school, the 
168.6   recipient or responsible party must provide written 
168.7   authorization in the care plan identifying the chosen provider 
168.8   and the daily amount of services to be used at school.  Total 
168.9   hours for services, whether actually performed inside or outside 
168.10  the recipient's home, cannot exceed that which is otherwise 
168.11  allowed for personal care services in an in-home setting 
168.12  according to section 256B.0627.  Medical assistance does not 
168.13  cover personal care services for residents of a hospital, 
168.14  nursing facility, intermediate care facility, health care 
168.15  facility licensed by the commissioner of health, or unless a 
168.16  resident who is otherwise eligible is on leave from the facility 
168.17  and the facility either pays for the personal care services or 
168.18  forgoes the facility per diem for the leave days that personal 
168.19  care services are used.  All personal care services must be 
168.20  provided according to section 256B.0627.  Personal care services 
168.21  may not be reimbursed if the personal care assistant is the 
168.22  spouse or legal guardian of the recipient or the parent of a 
168.23  recipient under age 18, or the responsible party or the foster 
168.24  care provider of a recipient who cannot direct the recipient's 
168.25  own care unless, in the case of a foster care provider, a county 
168.26  or state case manager visits the recipient as needed, but not 
168.27  less than every six months, to monitor the health and safety of 
168.28  the recipient and to ensure the goals of the care plan are met.  
168.29  Parents of adult recipients, adult children of the recipient or 
168.30  adult siblings of the recipient may be reimbursed for personal 
168.31  care services if they are not the recipient's legal guardian and 
168.32  are granted a waiver under section 256B.0627. 
168.33     Sec. 25.  Minnesota Statutes 1996, section 256B.0625, 
168.34  subdivision 20, is amended to read: 
168.35     Subd. 20.  [MENTAL ILLNESS HEALTH CASE MANAGEMENT.] (a) To 
168.36  the extent authorized by rule of the state agency, medical 
169.1   assistance covers case management services to persons with 
169.2   serious and persistent mental illness or subject to federal 
169.3   approval, and children with severe emotional disturbance.  
169.4   Services provided under this section must meet the relevant 
169.5   standards in sections 245.461 to 245.4888, the Comprehensive 
169.6   Adult and Children's Mental Health Acts, Minnesota Rules, parts 
169.7   9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10. 
169.8      (b) Entities meeting program standards set out in rules 
169.9   governing family community support services as defined in 
169.10  section 245.4871, subdivision 17, are eligible for medical 
169.11  assistance reimbursement for case management services for 
169.12  children with severe emotional disturbance when these services 
169.13  meet the program standards in Minnesota Rules, parts 9520.0900 
169.14  to 9520.0926 and 9505.0322, excluding subpart 6 subparts 6 and 
169.15  10. 
169.16     (b) In counties where fewer than 50 percent of children 
169.17  estimated to be eligible under medical assistance to receive 
169.18  case management services for children with severe emotional 
169.19  disturbance actually receive these services in state fiscal year 
169.20  1995, community mental health centers serving those counties, 
169.21  entities meeting program standards in Minnesota Rules, parts 
169.22  9520.0570 to 9520.0870, and other entities authorized by the 
169.23  commissioner are eligible for medical assistance reimbursement 
169.24  for case management services for children with severe emotional 
169.25  disturbance when these services meet the program standards in 
169.26  Minnesota Rules, parts 9520.0900 to 9520.0926 and 9505.0322, 
169.27  excluding subpart 6. 
169.28     (c) Medical assistance and MinnesotaCare payment for mental 
169.29  health case management shall be made on a monthly basis.  In 
169.30  order to receive payment for an eligible child, the provider 
169.31  must document at least a face-to-face contact with the child, 
169.32  the child's parents, or the child's legal representative.  To 
169.33  receive payment for an eligible adult, the provider must 
169.34  document at least a face-to-face contact with the adult or the 
169.35  adult's legal representative. 
169.36     (d) Payment for mental health case management provided by 
170.1   county or state staff shall be based on the monthly rate 
170.2   methodology under section 256B.094, subdivision 6, paragraph 
170.3   (b), with separate rates calculated for child welfare and mental 
170.4   health, and within mental health, separate rates for children 
170.5   and adults. 
170.6      (e) Payment for mental health case management provided by 
170.7   county-contracted vendors shall be based on a monthly rate 
170.8   negotiated by the host county.  The negotiated rate must not 
170.9   exceed the rate charged by the vendor for the same service to 
170.10  other payers.  If the service is provided by a team of 
170.11  contracted vendors, the county may negotiate a team rate with a 
170.12  vendor who is a member of the team.  The team shall determine 
170.13  how to distribute the rate among its members.  No reimbursement 
170.14  received by contracted vendors shall be returned to the county, 
170.15  except to reimburse the county for advance funding provided by 
170.16  the county to the vendor. 
170.17     (f) If the service is provided by a team which includes 
170.18  contracted vendors and county or state staff, the costs for 
170.19  county or state staff participation in the team shall be 
170.20  included in the rate for county-provided services.  In this 
170.21  case, the contracted vendor and the county may each receive 
170.22  separate payment for services provided by each entity in the 
170.23  same month.  In order to prevent duplication of services, the 
170.24  county must document, in the recipient's file, the need for team 
170.25  case management and a description of the roles of the team 
170.26  members. 
170.27     (g) The commissioner shall calculate the nonfederal share 
170.28  of actual medical assistance and general assistance medical care 
170.29  payments for each county, based on the higher of calendar year 
170.30  1995 or 1996, by service date, project that amount forward to 
170.31  1999, and transfer one-half of the result from medical 
170.32  assistance and general assistance medical care to each county's 
170.33  mental health grants under sections 245.4886 and 256E.12 for 
170.34  calendar year 1999.  The annualized minimum amount added to each 
170.35  county's mental health grant shall be $3,000 per year for 
170.36  children and $5,000 per year for adults.  The commissioner may 
171.1   reduce the statewide growth factor in order to fund these 
171.2   minimums.  The annualized total amount transferred shall become 
171.3   part of the base for future mental health grants for each county.
171.4      (h) Any net increase in revenue to the county as a result 
171.5   of the change in this section must be used to provide expanded 
171.6   mental health services as defined in sections 245.461 to 
171.7   245.4888, the Comprehensive Adult and Children's Mental Health 
171.8   Acts, excluding inpatient and residential treatment.  For 
171.9   adults, increased revenue may also be used for services and 
171.10  consumer supports which are part of adult mental health projects 
171.11  approved under Laws 1997, chapter 203, article 7, section 25.  
171.12  For children, increased revenue may also be used for respite 
171.13  care and nonresidential individualized rehabilitation services 
171.14  as defined in section 245.492, subdivisions 17 and 23.  
171.15  "Increased revenue" has the meaning given in Minnesota Rules, 
171.16  part 9520.0903, subpart 3.  
171.17     (i) Notwithstanding section 256B.19, subdivision 1, the 
171.18  nonfederal share of costs for mental health case management 
171.19  shall be provided by the recipient's county of responsibility, 
171.20  as defined in sections 256G.01 to 256G.12, from sources other 
171.21  than federal funds or funds used to match other federal funds.  
171.22     (j) The commissioner may suspend, reduce, or terminate the 
171.23  reimbursement to a provider that does not meet the reporting or 
171.24  other requirements of this section.  The county of 
171.25  responsibility, as defined in sections 256G.01 to 256G.12, is 
171.26  responsible for any federal disallowances.  The county may share 
171.27  this responsibility with its contracted vendors.  
171.28     (k) The commissioner shall set aside a portion of the 
171.29  federal funds earned under this section to repay the special 
171.30  revenue maximization account under section 256.01, subdivision 
171.31  2, clause (15).  The repayment is limited to: 
171.32     (1) the costs of developing and implementing this section; 
171.33  and 
171.34     (2) programming the information systems. 
171.35     (l) Notwithstanding section 256.025, subdivision 2, 
171.36  payments to counties for case management expenditures under this 
172.1   section shall only be made from federal earnings from services 
172.2   provided under this section.  Payments to contracted vendors 
172.3   shall include both the federal earnings and the county share. 
172.4      (m) Notwithstanding section 256B.041, county payments for 
172.5   the cost of mental health case management services provided by 
172.6   county or state staff shall not be made to the state treasurer.  
172.7   For the purposes of mental health case management services 
172.8   provided by county or state staff under this section, the 
172.9   centralized disbursement of payments to counties under section 
172.10  256B.041 consists only of federal earnings from services 
172.11  provided under this section. 
172.12     (n) Case management services under this subdivision do not 
172.13  include therapy, treatment, legal, or outreach services. 
172.14     (o) If the recipient is a resident of a nursing facility, 
172.15  intermediate care facility, or hospital, and the recipient's 
172.16  institutional care is paid by medical assistance, payment for 
172.17  case management services under this subdivision is limited to 
172.18  the last 30 days of the recipient's residency in that facility 
172.19  and may not exceed more than two months in a calendar year. 
172.20     (p) Payment for case management services under this 
172.21  subdivision shall not duplicate payments made under other 
172.22  program authorities for the same purpose. 
172.23     (q) By July 1, 2000, the commissioner shall evaluate the 
172.24  effectiveness of the changes required by this section, including 
172.25  changes in number of persons receiving mental health case 
172.26  management, changes in hours of service per person, and changes 
172.27  in caseload size. 
172.28     (r) For each calendar year beginning with the calendar year 
172.29  2001, the annualized amount of state funds for each county 
172.30  determined under paragraph (g) shall be adjusted by the county's 
172.31  percentage change in the average number of clients per month who 
172.32  received case management under this section during the fiscal 
172.33  year that ended six months prior to the calendar year in 
172.34  question, in comparison to the prior fiscal year. 
172.35     Sec. 26.  Minnesota Statutes 1997 Supplement, section 
172.36  256B.0625, subdivision 31a, is amended to read: 
173.1      Subd. 31a.  [AUGMENTATIVE AND ALTERNATIVE COMMUNICATION 
173.2   SYSTEMS.] (a) Medical assistance covers augmentative and 
173.3   alternative communication systems consisting of electronic or 
173.4   nonelectronic devices and the related components necessary to 
173.5   enable a person with severe expressive communication limitations 
173.6   to produce or transmit messages or symbols in a manner that 
173.7   compensates for that disability. 
173.8      (b) By January 1, 1998, the commissioner, in cooperation 
173.9   with the commissioner of administration, shall establish an 
173.10  augmentative and alternative communication system purchasing 
173.11  program within a state agency or by contract with a qualified 
173.12  private entity.  The purpose of this service is to facilitate 
173.13  ready availability of the augmentative and alternative 
173.14  communication systems needed to meet the needs of persons with 
173.15  severe expressive communication limitations in an efficient and 
173.16  cost-effective manner.  This program shall: 
173.17     (1) coordinate purchase and rental of augmentative and 
173.18  alternative communication systems; 
173.19     (2) negotiate agreements with manufacturers and vendors for 
173.20  purchase of components of these systems, for warranty coverage, 
173.21  and for repair service; 
173.22     (3) when efficient and cost-effective, maintain and 
173.23  refurbish if needed, an inventory of components of augmentative 
173.24  and alternative communication systems for short- or long-term 
173.25  loan to recipients; 
173.26     (4) facilitate training sessions for service providers, 
173.27  consumers, and families on augmentative and alternative 
173.28  communication systems; and 
173.29     (5) develop a recycling program for used augmentative and 
173.30  alternative communications systems to be reissued and used for 
173.31  trials and short-term use, when appropriate. 
173.32     The availability of components of augmentative and 
173.33  alternative communication systems through this program is 
173.34  subject to prior authorization requirements established under 
173.35  subdivision 25 Until the volume of systems purchased increases 
173.36  to allow a discount price, the commissioner shall reimburse 
174.1   augmentative and alternative communication manufacturers and 
174.2   vendors at the manufacturer's suggested retail price for 
174.3   augmentative and alternative communication systems and related 
174.4   components.  The commissioner shall separately reimburse 
174.5   providers for purchasing and integrating individual 
174.6   communication systems which are unavailable as a package from an 
174.7   augmentative and alternative communication vendor. 
174.8      (c) Reimbursement rates established by this purchasing 
174.9   program are not subject to Minnesota Rules, part 9505.0445, item 
174.10  S or T. 
174.11     Sec. 27.  Minnesota Statutes 1996, section 256B.0625, 
174.12  subdivision 34, is amended to read: 
174.13     Subd. 34.  [AMERICAN INDIAN HEALTH SERVICES FACILITIES.] 
174.14  Medical assistance payments to American Indian health services 
174.15  facilities for outpatient medical services billed after June 30, 
174.16  1990, must be facilities of the Indian health service and 
174.17  facilities operated by a tribe or tribal organization under 
174.18  funding authorized by United States Code, title 25, sections 
174.19  450f to 450n, or title III of the Indian Self-Determination and 
174.20  Education Assistance Act, Public Law Number 93-638, shall be at 
174.21  the option of the facility in accordance with the rate published 
174.22  by the United States Assistant Secretary for Health under the 
174.23  authority of United States Code, title 42, sections 248(a) and 
174.24  249(b).  General assistance medical care payments to facilities 
174.25  of the American Indian health services and facilities operated 
174.26  by a tribe or tribal organization for the provision of 
174.27  outpatient medical care services billed after June 30, 1990, 
174.28  must be in accordance with the general assistance medical care 
174.29  rates paid for the same services when provided in a facility 
174.30  other than an American a facility of the Indian health 
174.31  service or a facility operated by a tribe or tribal organization.
174.32     Sec. 28.  Minnesota Statutes 1996, section 256B.0625, 
174.33  subdivision 38, is amended to read: 
174.34     Subd. 38.  [PAYMENTS FOR MENTAL HEALTH SERVICES.] Payments 
174.35  for mental health services covered under the medical assistance 
174.36  program that are provided by masters-prepared mental health 
175.1   professionals shall be 80 percent of the rate paid to 
175.2   doctoral-prepared professionals.  Payments for mental health 
175.3   services covered under the medical assistance program that are 
175.4   provided by masters-prepared mental health professionals 
175.5   employed by community mental health centers shall be 100 percent 
175.6   of the rate paid to doctoral-prepared professionals.  For 
175.7   purposes of reimbursement of mental health professionals under 
175.8   the medical assistance program, all social workers who: 
175.9      (1) have received a master's degree in social work from a 
175.10  program accredited by the council on social work education; 
175.11     (2) are licensed at the level of graduate social worker or 
175.12  independent social worker; and 
175.13     (3) are practicing clinical social work under appropriate 
175.14  supervision, as defined by section 148B.18; meet all 
175.15  requirements under Minnesota Rules, part 9505.0323, subpart 24, 
175.16  and shall be paid accordingly.  
175.17     Sec. 29.  Minnesota Statutes 1996, section 256B.0627, 
175.18  subdivision 4, is amended to read: 
175.19     Subd. 4.  [PERSONAL CARE SERVICES.] (a) The personal care 
175.20  services that are eligible for payment are the following:  
175.21     (1) bowel and bladder care; 
175.22     (2) skin care to maintain the health of the skin; 
175.23     (3) repetitive maintenance range of motion, muscle 
175.24  strengthening exercises, and other tasks specific to maintaining 
175.25  a recipient's optimal level of function; 
175.26     (4) respiratory assistance; 
175.27     (5) transfers and ambulation; 
175.28     (6) bathing, grooming, and hairwashing necessary for 
175.29  personal hygiene; 
175.30     (7) turning and positioning; 
175.31     (8) assistance with furnishing medication that is 
175.32  self-administered; 
175.33     (9) application and maintenance of prosthetics and 
175.34  orthotics; 
175.35     (10) cleaning medical equipment; 
175.36     (11) dressing or undressing; 
176.1      (12) assistance with eating and meal preparation and 
176.2   necessary grocery shopping; 
176.3      (13) accompanying a recipient to obtain medical diagnosis 
176.4   or treatment; 
176.5      (14) assisting, monitoring, or prompting the recipient to 
176.6   complete the services in clauses (1) to (13); 
176.7      (15) redirection, monitoring, and observation that are 
176.8   medically necessary and an integral part of completing the 
176.9   personal care services described in clauses (1) to (14); 
176.10     (16) redirection and intervention for behavior, including 
176.11  observation and monitoring; 
176.12     (17) interventions for seizure disorders, including 
176.13  monitoring and observation if the recipient has had a seizure 
176.14  that requires intervention within the past three months; and 
176.15     (18) tracheostomy suctioning using a clean procedure if the 
176.16  procedure is properly delegated by a registered nurse.  Before 
176.17  this procedure can be delegated to a personal care assistant, a 
176.18  registered nurse must determine that the tracheostomy suctioning 
176.19  can be accomplished utilizing a clean rather than a sterile 
176.20  procedure and must ensure that the personal care assistant has 
176.21  been taught the proper procedure; and 
176.22     (19) incidental household services that are an integral 
176.23  part of a personal care service described in clauses (1) to 
176.24  (17) (18). 
176.25  For purposes of this subdivision, monitoring and observation 
176.26  means watching for outward visible signs that are likely to 
176.27  occur and for which there is a covered personal care service or 
176.28  an appropriate personal care intervention.  For purposes of this 
176.29  subdivision, a clean procedure refers to a procedure that 
176.30  reduces the numbers of microorganisms or prevents or reduces the 
176.31  transmission of microorganisms from one person or place to 
176.32  another.  A clean procedure may be used beginning 14 days after 
176.33  insertion. 
176.34     (b) The personal care services that are not eligible for 
176.35  payment are the following:  
176.36     (1) services not ordered by the physician; 
177.1      (2) assessments by personal care provider organizations or 
177.2   by independently enrolled registered nurses; 
177.3      (3) services that are not in the service plan; 
177.4      (4) services provided by the recipient's spouse, legal 
177.5   guardian for an adult or child recipient, or parent of a 
177.6   recipient under age 18; 
177.7      (5) services provided by a foster care provider of a 
177.8   recipient who cannot direct the recipient's own care, unless 
177.9   monitored by a county or state case manager under section 
177.10  256B.0625, subdivision 19a; 
177.11     (6) services provided by the residential or program license 
177.12  holder in a residence for more than four persons; 
177.13     (7) services that are the responsibility of a residential 
177.14  or program license holder under the terms of a service agreement 
177.15  and administrative rules; 
177.16     (8) sterile procedures; 
177.17     (9) injections of fluids into veins, muscles, or skin; 
177.18     (10) services provided by parents of adult recipients, 
177.19  adult children or adult siblings of the recipient, unless these 
177.20  relatives meet one of the following hardship criteria and the 
177.21  commissioner waives this requirement: 
177.22     (i) the relative resigns from a part-time or full-time job 
177.23  to provide personal care for the recipient; 
177.24     (ii) the relative goes from a full-time to a part-time job 
177.25  with less compensation to provide personal care for the 
177.26  recipient; 
177.27     (iii) the relative takes a leave of absence without pay to 
177.28  provide personal care for the recipient; 
177.29     (iv) the relative incurs substantial expenses by providing 
177.30  personal care for the recipient; or 
177.31     (v) because of labor conditions or intermittent hours of 
177.32  care needed, the relative is needed in order to provide an 
177.33  adequate number of qualified personal care assistants to meet 
177.34  the medical needs of the recipient; 
177.35     (11) homemaker services that are not an integral part of a 
177.36  personal care services; 
178.1      (12) home maintenance, or chore services; 
178.2      (13) services not specified under paragraph (a); and 
178.3      (14) services not authorized by the commissioner or the 
178.4   commissioner's designee. 
178.5      Sec. 30.  Minnesota Statutes 1997 Supplement, section 
178.6   256B.0627, subdivision 5, is amended to read: 
178.7      Subd. 5.  [LIMITATION ON PAYMENTS.] Medical assistance 
178.8   payments for home care services shall be limited according to 
178.9   this subdivision.  
178.10     (a)  [LIMITS ON SERVICES WITHOUT PRIOR AUTHORIZATION.] A 
178.11  recipient may receive the following home care services during a 
178.12  calendar year: 
178.13     (1) any initial assessment; 
178.14     (2) up to two reassessments per year done to determine a 
178.15  recipient's need for personal care services; and 
178.16     (3) up to five skilled nurse visits.  
178.17     (b)  [PRIOR AUTHORIZATION; EXCEPTIONS.] All home care 
178.18  services above the limits in paragraph (a) must receive the 
178.19  commissioner's prior authorization, except when: 
178.20     (1) the home care services were required to treat an 
178.21  emergency medical condition that if not immediately treated 
178.22  could cause a recipient serious physical or mental disability, 
178.23  continuation of severe pain, or death.  The provider must 
178.24  request retroactive authorization no later than five working 
178.25  days after giving the initial service.  The provider must be 
178.26  able to substantiate the emergency by documentation such as 
178.27  reports, notes, and admission or discharge histories; 
178.28     (2) the home care services were provided on or after the 
178.29  date on which the recipient's eligibility began, but before the 
178.30  date on which the recipient was notified that the case was 
178.31  opened.  Authorization will be considered if the request is 
178.32  submitted by the provider within 20 working days of the date the 
178.33  recipient was notified that the case was opened; 
178.34     (3) a third-party payor for home care services has denied 
178.35  or adjusted a payment.  Authorization requests must be submitted 
178.36  by the provider within 20 working days of the notice of denial 
179.1   or adjustment.  A copy of the notice must be included with the 
179.2   request; 
179.3      (4) the commissioner has determined that a county or state 
179.4   human services agency has made an error; or 
179.5      (5) the professional nurse determines an immediate need for 
179.6   up to 40 skilled nursing or home health aide visits per calendar 
179.7   year and submits a request for authorization within 20 working 
179.8   days of the initial service date, and medical assistance is 
179.9   determined to be the appropriate payer. 
179.10     (c)  [RETROACTIVE AUTHORIZATION.] A request for retroactive 
179.11  authorization will be evaluated according to the same criteria 
179.12  applied to prior authorization requests.  
179.13     (d)  [ASSESSMENT AND SERVICE PLAN.] Assessments under 
179.14  section 256B.0627, subdivision 1, paragraph (a), shall be 
179.15  conducted initially, and at least annually thereafter, in person 
179.16  with the recipient and result in a completed service plan using 
179.17  forms specified by the commissioner.  Within 30 days of 
179.18  recipient or responsible party request for home care services, 
179.19  the assessment, the service plan, and other information 
179.20  necessary to determine medical necessity such as diagnostic or 
179.21  testing information, social or medical histories, and hospital 
179.22  or facility discharge summaries shall be submitted to the 
179.23  commissioner.  For personal care services: 
179.24     (1) The amount and type of service authorized based upon 
179.25  the assessment and service plan will follow the recipient if the 
179.26  recipient chooses to change providers.  
179.27     (2) If the recipient's medical need changes, the 
179.28  recipient's provider may assess the need for a change in service 
179.29  authorization and request the change from the county public 
179.30  health nurse.  Within 30 days of the request, the public health 
179.31  nurse will determine whether to request the change in services 
179.32  based upon the provider assessment, or conduct a home visit to 
179.33  assess the need and determine whether the change is appropriate. 
179.34     (3) To continue to receive personal care services when the 
179.35  recipient displays no significant change, the county public 
179.36  health nurse has the option to review with the commissioner, or 
180.1   the commissioner's designee, the service plan on record and 
180.2   receive authorization for up to an additional 12 months at a 
180.3   time for up to three years. after the first year, the recipient 
180.4   or the responsible party, in conjunction with the public health 
180.5   nurse, may complete a service update on forms developed by the 
180.6   commissioner.  The service update may substitute for the annual 
180.7   reassessment described in subdivision 1. 
180.8      (e)  [PRIOR AUTHORIZATION.] The commissioner, or the 
180.9   commissioner's designee, shall review the assessment, the 
180.10  service plan, and any additional information that is submitted.  
180.11  The commissioner shall, within 30 days after receiving a 
180.12  complete request, assessment, and service plan, authorize home 
180.13  care services as follows:  
180.14     (1)  [HOME HEALTH SERVICES.] All home health services 
180.15  provided by a licensed nurse or a home health aide must be prior 
180.16  authorized by the commissioner or the commissioner's designee.  
180.17  Prior authorization must be based on medical necessity and 
180.18  cost-effectiveness when compared with other care options.  When 
180.19  home health services are used in combination with personal care 
180.20  and private duty nursing, the cost of all home care services 
180.21  shall be considered for cost-effectiveness.  The commissioner 
180.22  shall limit nurse and home health aide visits to no more than 
180.23  one visit each per day. 
180.24     (2)  [PERSONAL CARE SERVICES.] (i) All personal care 
180.25  services and registered nurse supervision must be prior 
180.26  authorized by the commissioner or the commissioner's designee 
180.27  except for the assessments established in paragraph (a).  The 
180.28  amount of personal care services authorized must be based on the 
180.29  recipient's home care rating.  A child may not be found to be 
180.30  dependent in an activity of daily living if because of the 
180.31  child's age an adult would either perform the activity for the 
180.32  child or assist the child with the activity and the amount of 
180.33  assistance needed is similar to the assistance appropriate for a 
180.34  typical child of the same age.  Based on medical necessity, the 
180.35  commissioner may authorize: 
180.36     (A) up to two times the average number of direct care hours 
181.1   provided in nursing facilities for the recipient's comparable 
181.2   case mix level; or 
181.3      (B) up to three times the average number of direct care 
181.4   hours provided in nursing facilities for recipients who have 
181.5   complex medical needs or are dependent in at least seven 
181.6   activities of daily living and need physical assistance with 
181.7   eating or have a neurological diagnosis; or 
181.8      (C) up to 60 percent of the average reimbursement rate, as 
181.9   of July 1, 1991, for care provided in a regional treatment 
181.10  center for recipients who have Level I behavior, plus any 
181.11  inflation adjustment as provided by the legislature for personal 
181.12  care service; or 
181.13     (D) up to the amount the commissioner would pay, as of July 
181.14  1, 1991, plus any inflation adjustment provided for home care 
181.15  services, for care provided in a regional treatment center for 
181.16  recipients referred to the commissioner by a regional treatment 
181.17  center preadmission evaluation team.  For purposes of this 
181.18  clause, home care services means all services provided in the 
181.19  home or community that would be included in the payment to a 
181.20  regional treatment center; or 
181.21     (E) up to the amount medical assistance would reimburse for 
181.22  facility care for recipients referred to the commissioner by a 
181.23  preadmission screening team established under section 256B.0911 
181.24  or 256B.092; and 
181.25     (F) a reasonable amount of time for the provision of 
181.26  nursing supervision of personal care services.  
181.27     (ii) The number of direct care hours shall be determined 
181.28  according to the annual cost report submitted to the department 
181.29  by nursing facilities.  The average number of direct care hours, 
181.30  as established by May 1, 1992, shall be calculated and 
181.31  incorporated into the home care limits on July 1, 1992.  These 
181.32  limits shall be calculated to the nearest quarter hour. 
181.33     (iii) The home care rating shall be determined by the 
181.34  commissioner or the commissioner's designee based on information 
181.35  submitted to the commissioner by the county public health nurse 
181.36  on forms specified by the commissioner.  The home care rating 
182.1   shall be a combination of current assessment tools developed 
182.2   under sections 256B.0911 and 256B.501 with an addition for 
182.3   seizure activity that will assess the frequency and severity of 
182.4   seizure activity and with adjustments, additions, and 
182.5   clarifications that are necessary to reflect the needs and 
182.6   conditions of recipients who need home care including children 
182.7   and adults under 65 years of age.  The commissioner shall 
182.8   establish these forms and protocols under this section and shall 
182.9   use an advisory group, including representatives of recipients, 
182.10  providers, and counties, for consultation in establishing and 
182.11  revising the forms and protocols. 
182.12     (iv) A recipient shall qualify as having complex medical 
182.13  needs if the care required is difficult to perform and because 
182.14  of recipient's medical condition requires more time than 
182.15  community-based standards allow or requires more skill than 
182.16  would ordinarily be required and the recipient needs or has one 
182.17  or more of the following: 
182.18     (A) daily tube feedings; 
182.19     (B) daily parenteral therapy; 
182.20     (C) wound or decubiti care; 
182.21     (D) postural drainage, percussion, nebulizer treatments, 
182.22  suctioning, tracheotomy care, oxygen, mechanical ventilation; 
182.23     (E) catheterization; 
182.24     (F) ostomy care; 
182.25     (G) quadriplegia; or 
182.26     (H) other comparable medical conditions or treatments the 
182.27  commissioner determines would otherwise require institutional 
182.28  care.  
182.29     (v) A recipient shall qualify as having Level I behavior if 
182.30  there is reasonable supporting evidence that the recipient 
182.31  exhibits, or that without supervision, observation, or 
182.32  redirection would exhibit, one or more of the following 
182.33  behaviors that cause, or have the potential to cause: 
182.34     (A) injury to the recipient's own body; 
182.35     (B) physical injury to other people; or 
182.36     (C) destruction of property. 
183.1      (vi) Time authorized for personal care relating to Level I 
183.2   behavior in subclause (v), items (A) to (C), shall be based on 
183.3   the predictability, frequency, and amount of intervention 
183.4   required. 
183.5      (vii) A recipient shall qualify as having Level II behavior 
183.6   if the recipient exhibits on a daily basis one or more of the 
183.7   following behaviors that interfere with the completion of 
183.8   personal care services under subdivision 4, paragraph (a): 
183.9      (A) unusual or repetitive habits; 
183.10     (B) withdrawn behavior; or 
183.11     (C) offensive behavior. 
183.12     (viii) A recipient with a home care rating of Level II 
183.13  behavior in subclause (vii), items (A) to (C), shall be rated as 
183.14  comparable to a recipient with complex medical needs under 
183.15  subclause (iv).  If a recipient has both complex medical needs 
183.16  and Level II behavior, the home care rating shall be the next 
183.17  complex category up to the maximum rating under subclause (i), 
183.18  item (B). 
183.19     (3)  [PRIVATE DUTY NURSING SERVICES.] All private duty 
183.20  nursing services shall be prior authorized by the commissioner 
183.21  or the commissioner's designee.  Prior authorization for private 
183.22  duty nursing services shall be based on medical necessity and 
183.23  cost-effectiveness when compared with alternative care options.  
183.24  The commissioner may authorize medically necessary private duty 
183.25  nursing services in quarter-hour units when: 
183.26     (i) the recipient requires more individual and continuous 
183.27  care than can be provided during a nurse visit; or 
183.28     (ii) the cares are outside of the scope of services that 
183.29  can be provided by a home health aide or personal care assistant.
183.30     The commissioner may authorize: 
183.31     (A) up to two times the average amount of direct care hours 
183.32  provided in nursing facilities statewide for case mix 
183.33  classification "K" as established by the annual cost report 
183.34  submitted to the department by nursing facilities in May 1992; 
183.35     (B) private duty nursing in combination with other home 
183.36  care services up to the total cost allowed under clause (2); 
184.1      (C) up to 16 hours per day if the recipient requires more 
184.2   nursing than the maximum number of direct care hours as 
184.3   established in item (A) and the recipient meets the hospital 
184.4   admission criteria established under Minnesota Rules, parts 
184.5   9505.0500 to 9505.0540.  
184.6      The commissioner may authorize up to 16 hours per day of 
184.7   medically necessary private duty nursing services or up to 24 
184.8   hours per day of medically necessary private duty nursing 
184.9   services until such time as the commissioner is able to make a 
184.10  determination of eligibility for recipients who are 
184.11  cooperatively applying for home care services under the 
184.12  community alternative care program developed under section 
184.13  256B.49, or until it is determined by the appropriate regulatory 
184.14  agency that a health benefit plan is or is not required to pay 
184.15  for appropriate medically necessary health care services.  
184.16  Recipients or their representatives must cooperatively assist 
184.17  the commissioner in obtaining this determination.  Recipients 
184.18  who are eligible for the community alternative care program may 
184.19  not receive more hours of nursing under this section than would 
184.20  otherwise be authorized under section 256B.49. 
184.21     (4)  [VENTILATOR-DEPENDENT RECIPIENTS.] If the recipient is 
184.22  ventilator-dependent, the monthly medical assistance 
184.23  authorization for home care services shall not exceed what the 
184.24  commissioner would pay for care at the highest cost hospital 
184.25  designated as a long-term hospital under the Medicare program.  
184.26  For purposes of this clause, home care services means all 
184.27  services provided in the home that would be included in the 
184.28  payment for care at the long-term hospital.  
184.29  "Ventilator-dependent" means an individual who receives 
184.30  mechanical ventilation for life support at least six hours per 
184.31  day and is expected to be or has been dependent for at least 30 
184.32  consecutive days.  
184.33     (f)  [PRIOR AUTHORIZATION; TIME LIMITS.] The commissioner 
184.34  or the commissioner's designee shall determine the time period 
184.35  for which a prior authorization shall be effective.  If the 
184.36  recipient continues to require home care services beyond the 
185.1   duration of the prior authorization, the home care provider must 
185.2   request a new prior authorization.  Under no circumstances, 
185.3   other than the exceptions in paragraph (b), shall a prior 
185.4   authorization be valid prior to the date the commissioner 
185.5   receives the request or for more than 12 months.  A recipient 
185.6   who appeals a reduction in previously authorized home care 
185.7   services may continue previously authorized services, other than 
185.8   temporary services under paragraph (h), pending an appeal under 
185.9   section 256.045.  The commissioner must provide a detailed 
185.10  explanation of why the authorized services are reduced in amount 
185.11  from those requested by the home care provider.  
185.12     (g)  [APPROVAL OF HOME CARE SERVICES.] The commissioner or 
185.13  the commissioner's designee shall determine the medical 
185.14  necessity of home care services, the level of caregiver 
185.15  according to subdivision 2, and the institutional comparison 
185.16  according to this subdivision, the cost-effectiveness of 
185.17  services, and the amount, scope, and duration of home care 
185.18  services reimbursable by medical assistance, based on the 
185.19  assessment, primary payer coverage determination information as 
185.20  required, the service plan, the recipient's age, the cost of 
185.21  services, the recipient's medical condition, and diagnosis or 
185.22  disability.  The commissioner may publish additional criteria 
185.23  for determining medical necessity according to section 256B.04. 
185.24     (h)  [PRIOR AUTHORIZATION REQUESTS; TEMPORARY SERVICES.] 
185.25  The agency nurse, the independently enrolled private duty nurse, 
185.26  or county public health nurse may request a temporary 
185.27  authorization for home care services by telephone.  The 
185.28  commissioner may approve a temporary level of home care services 
185.29  based on the assessment, and service or care plan information, 
185.30  and primary payer coverage determination information as required.
185.31  Authorization for a temporary level of home care services 
185.32  including nurse supervision is limited to the time specified by 
185.33  the commissioner, but shall not exceed 45 days, unless extended 
185.34  because the county public health nurse has not completed the 
185.35  required assessment and service plan, or the commissioner's 
185.36  determination has not been made.  The level of services 
186.1   authorized under this provision shall have no bearing on a 
186.2   future prior authorization. 
186.3      (i)  [PRIOR AUTHORIZATION REQUIRED IN FOSTER CARE SETTING.] 
186.4   Home care services provided in an adult or child foster care 
186.5   setting must receive prior authorization by the department 
186.6   according to the limits established in paragraph (a). 
186.7      The commissioner may not authorize: 
186.8      (1) home care services that are the responsibility of the 
186.9   foster care provider under the terms of the foster care 
186.10  placement agreement and administrative rules.  Requests for home 
186.11  care services for recipients residing in a foster care setting 
186.12  must include the foster care placement agreement and 
186.13  determination of difficulty of care; 
186.14     (2) personal care services when the foster care license 
186.15  holder is also the personal care provider or personal care 
186.16  assistant unless the recipient can direct the recipient's own 
186.17  care, or case management is provided as required in section 
186.18  256B.0625, subdivision 19a; 
186.19     (3) personal care services when the responsible party is an 
186.20  employee of, or under contract with, or has any direct or 
186.21  indirect financial relationship with the personal care provider 
186.22  or personal care assistant, unless case management is provided 
186.23  as required in section 256B.0625, subdivision 19a; 
186.24     (4) home care services when the number of foster care 
186.25  residents is greater than four unless the county responsible for 
186.26  the recipient's foster placement made the placement prior to 
186.27  April 1, 1992, requests that home care services be provided, and 
186.28  case management is provided as required in section 256B.0625, 
186.29  subdivision 19a; or 
186.30     (5) home care services when combined with foster care 
186.31  payments, other than room and board payments that exceed the 
186.32  total amount that public funds would pay for the recipient's 
186.33  care in a medical institution. 
186.34     Sec. 31.  Minnesota Statutes 1997 Supplement, section 
186.35  256B.0627, subdivision 8, is amended to read: 
186.36     Subd. 8.  [PERSONAL CARE ASSISTANT SERVICES; SHARED CARE.] 
187.1   (a) Medical assistance payments for personal care assistance 
187.2   shared care shall be limited according to this subdivision. 
187.3      (b) Recipients of personal care assistant services may 
187.4   share staff and the commissioner shall provide a rate system for 
187.5   shared personal care assistant services.  For two persons 
187.6   sharing care, the rate system paid to a provider shall not 
187.7   exceed 1-1/2 times the amount rate paid for providing services 
187.8   to one person serving a single individual, and shall increase 
187.9   incrementally by one-half the cost of serving a single person, 
187.10  for each person served.  A personal care assistant may not serve 
187.11  more than three children in a single setting. for three persons 
187.12  sharing care, the rate paid to a provider shall not exceed twice 
187.13  the rate paid for serving a single individual.  These rates 
187.14  apply only to situations in which all recipients were present 
187.15  and received shared care on the date for which the service is 
187.16  billed.  No more than three persons may receive shared care from 
187.17  a personal care assistant in a single setting. 
187.18     (c) Shared care is the provision of personal care services 
187.19  by a personal care assistant to two or three recipients at the 
187.20  same time and in the same setting.  For the purposes of this 
187.21  subdivision, "setting" means: 
187.22     (1) the home or foster care home of one of the individual 
187.23  recipients; or 
187.24     (2) a child care program in which all recipients served by 
187.25  one personal care assistant are participating, which is licensed 
187.26  under chapter 245A or operated by a local school district or 
187.27  private school.  
187.28     The provisions of this subdivision do not apply when a 
187.29  personal care assistant is caring for multiple recipients in 
187.30  more than one setting. 
187.31     (d) The recipient or the recipient's responsible party, in 
187.32  conjunction with the county public health nurse, shall determine:
187.33     (1) whether shared care is an appropriate option based on 
187.34  the individual needs and preferences of the recipient; and 
187.35     (2) the amount of shared care allocated as part of the 
187.36  overall authorization of personal care services. 
188.1      The recipient or the responsible party, in conjunction with 
188.2   the supervising registered nurse, shall approve the setting, 
188.3   grouping, and arrangement of shared care based on the individual 
188.4   needs and preferences of the recipients.  Decisions on the 
188.5   selection of recipients to share care must be based on the ages 
188.6   of the recipients, compatibility, and coordination of their care 
188.7   needs. 
188.8      (e) The following items must be considered by the recipient 
188.9   or the responsible party and the supervising nurse, and 
188.10  documented in the recipient's care plan: 
188.11     (1) the additional qualifications needed by the personal 
188.12  care assistant to provide care to several recipients in the same 
188.13  setting; 
188.14     (2) the additional training and supervision needed by the 
188.15  personal care assistant to ensure that the needs of the 
188.16  recipient are met appropriately and safely.  The provider must 
188.17  provide on-site supervision by a registered nurse within the 
188.18  first 14 days of shared care, and monthly thereafter; 
188.19     (3) the setting in which the shared care will be provided; 
188.20     (4) the ongoing monitoring and evaluation of the 
188.21  effectiveness and appropriateness of the service and process 
188.22  used to make changes in service or setting; and 
188.23     (5) a contingency plan which accounts for absence of the 
188.24  recipient in a shared care setting due to illness or other 
188.25  circumstances and staffing contingencies. 
188.26     (f) The provider must offer the recipient or the 
188.27  responsible party the option of shared or individual personal 
188.28  care assistant care.  The recipient or the responsible party can 
188.29  withdraw from participating in a shared care arrangement at any 
188.30  time. 
188.31     (g) In addition to documentation requirements under 
188.32  Minnesota Rules, part 9505.2175, a personal care provider must 
188.33  meet documentation requirements for shared personal care 
188.34  services and must document the following in the health service 
188.35  record for each individual recipient sharing care: 
188.36     (1) authorization by the recipient or the recipient's 
189.1   responsible party, if any, for the maximum number of shared care 
189.2   hours per week chosen by the recipient; 
189.3      (2) authorization by the recipient or the recipient's 
189.4   responsible party, if any, for personal care services provided 
189.5   outside the recipient's residence; 
189.6      (3) authorization by the recipient or the recipient's 
189.7   responsible party, if any, for others to receive shared care in 
189.8   the recipient's residence; 
189.9      (4) revocation by the recipient or the recipient's 
189.10  responsible party, if any, of the shared care authorization, or 
189.11  the shared care to be provided to others in the recipient's 
189.12  residence, or the shared care to be provided outside the 
189.13  recipient's residence; 
189.14     (5) supervision of the shared care by the supervisory 
189.15  nurse, including the date, time of day, number of hours spent 
189.16  supervising the provision of shared care services, whether the 
189.17  supervision was face-to-face or another method of supervision, 
189.18  changes in the recipient's condition, shared care scheduling 
189.19  issues and recommendations; 
189.20     (6) documentation by the personal care assistant of 
189.21  telephone calls or other discussions with the supervisory nurse 
189.22  regarding services being provided to the recipient; and 
189.23     (7) daily documentation of the shared care services 
189.24  provided by each identified personal care assistant including: 
189.25     (i) the names of each recipient receiving shared care 
189.26  together; 
189.27     (ii) the setting for the day's care, including the starting 
189.28  and ending times that the recipient received shared care; and 
189.29     (iii) notes by the personal care assistant regarding 
189.30  changes in the recipient's condition, problems that may arise 
189.31  from the sharing of care, scheduling issues, care issues, and 
189.32  other notes as required by the supervising nurse. 
189.33     (h) Unless otherwise provided in this subdivision, all 
189.34  other statutory and regulatory provisions relating to personal 
189.35  care services apply to shared care services. 
189.36     Nothing in this subdivision shall be construed to reduce 
190.1   the total number of hours authorized for an individual recipient.
190.2      Sec. 32.  Minnesota Statutes 1997 Supplement, section 
190.3   256B.0645, is amended to read: 
190.4      256B.0645 [PROVIDER PAYMENTS; RETROACTIVE CHANGES IN 
190.5   ELIGIBILITY.] 
190.6      Payment to a provider for a health care service provided to 
190.7   a general assistance medical care recipient who is later 
190.8   determined eligible for medical assistance or MinnesotaCare 
190.9   according to section 256L.14 256L.03, subdivision 1a, for the 
190.10  period in which the health care service was provided, shall be 
190.11  considered payment in full, and shall not may be adjusted due to 
190.12  the change in eligibility.  This section applies does not apply 
190.13  to both fee-for-service payments and payments made to health 
190.14  plans on a prepaid capitated basis. 
190.15     Sec. 33.  Minnesota Statutes 1997 Supplement, section 
190.16  256B.0911, subdivision 2, is amended to read: 
190.17     Subd. 2.  [PERSONS REQUIRED TO BE SCREENED; EXEMPTIONS.] 
190.18  All applicants to Medicaid certified nursing facilities must be 
190.19  screened prior to admission, regardless of income, assets, or 
190.20  funding sources, except the following: 
190.21     (1) patients who, having entered acute care facilities from 
190.22  certified nursing facilities, are returning to a certified 
190.23  nursing facility; 
190.24     (2) residents transferred from other certified nursing 
190.25  facilities located within the state of Minnesota; 
190.26     (3) individuals who have a contractual right to have their 
190.27  nursing facility care paid for indefinitely by the veteran's 
190.28  administration; 
190.29     (4) individuals who are enrolled in the Ebenezer/Group 
190.30  Health social health maintenance organization project, or 
190.31  enrolled in a demonstration project under section 256B.69, 
190.32  subdivision 18 8, at the time of application to a nursing home; 
190.33     (5) individuals previously screened and currently being 
190.34  served under the alternative care program or under a home and 
190.35  community-based services waiver authorized under section 1915(c) 
190.36  of the Social Security Act; or 
191.1      (6) individuals who are admitted to a certified nursing 
191.2   facility for a short-term stay, which, based upon a physician's 
191.3   certification, is expected to be 14 days or less in duration, 
191.4   and who have been screened and approved for nursing facility 
191.5   admission within the previous six months.  This exemption 
191.6   applies only if the screener determines at the time of the 
191.7   initial screening of the six-month period that it is appropriate 
191.8   to use the nursing facility for short-term stays and that there 
191.9   is an adequate plan of care for return to the home or 
191.10  community-based setting.  If a stay exceeds 14 days, the 
191.11  individual must be referred no later than the first county 
191.12  working day following the 14th resident day for a screening, 
191.13  which must be completed within five working days of the 
191.14  referral.  Payment limitations in subdivision 7 will apply to an 
191.15  individual found at screening to not meet the level of care 
191.16  criteria for admission to a certified nursing facility. 
191.17     Regardless of the exemptions in clauses (2) to (6), persons 
191.18  who have a diagnosis or possible diagnosis of mental illness, 
191.19  mental retardation, or a related condition must receive a 
191.20  preadmission screening before admission unless the admission 
191.21  prior to screening is authorized by the local mental health 
191.22  authority or the local developmental disabilities case manager, 
191.23  or unless authorized by the county agency according to Public 
191.24  Law Number 101-508. 
191.25     Before admission to a Medicaid certified nursing home or 
191.26  boarding care home, all persons must be screened and approved 
191.27  for admission through an assessment process.  The nursing 
191.28  facility is authorized to conduct case mix assessments which are 
191.29  not conducted by the county public health nurse under Minnesota 
191.30  Rules, part 9549.0059.  The designated county agency is 
191.31  responsible for distributing the quality assurance and review 
191.32  form for all new applicants to nursing homes. 
191.33     Other persons who are not applicants to nursing facilities 
191.34  must be screened if a request is made for a screening. 
191.35     Sec. 34.  Minnesota Statutes 1996, section 256B.0911, 
191.36  subdivision 4, is amended to read: 
192.1      Subd. 4.  [RESPONSIBILITIES OF THE COUNTY AND THE SCREENING 
192.2   TEAM.] (a) The county shall: 
192.3      (1) provide information and education to the general public 
192.4   regarding availability of the preadmission screening program; 
192.5      (2) accept referrals from individuals, families, human 
192.6   service and health professionals, and hospital and nursing 
192.7   facility personnel; 
192.8      (3) assess the health, psychological, and social needs of 
192.9   referred individuals and identify services needed to maintain 
192.10  these persons in the least restrictive environments; 
192.11     (4) determine if the individual screened needs nursing 
192.12  facility level of care; 
192.13     (5) assess specialized service needs based upon an 
192.14  evaluation by: 
192.15     (i) a qualified independent mental health professional for 
192.16  persons with a primary or secondary diagnosis of a serious 
192.17  mental illness; and 
192.18     (ii) a qualified mental retardation professional for 
192.19  persons with a primary or secondary diagnosis of mental 
192.20  retardation or related conditions.  For purposes of this clause, 
192.21  a qualified mental retardation professional must meet the 
192.22  standards for a qualified mental retardation professional in 
192.23  Code of Federal Regulations, title 42, section 483.430; 
192.24     (6) make recommendations for individuals screened regarding 
192.25  cost-effective community services which are available to the 
192.26  individual; 
192.27     (7) make recommendations for individuals screened regarding 
192.28  nursing home placement when there are no cost-effective 
192.29  community services available; 
192.30     (8) develop an individual's community care plan and provide 
192.31  follow-up services as needed; and 
192.32     (9) prepare and submit reports that may be required by the 
192.33  commissioner of human services. 
192.34     (b) The screener shall document that the most 
192.35  cost-effective alternatives available were offered to the 
192.36  individual or the individual's legal representative.  For 
193.1   purposes of this section, "cost-effective alternatives" means 
193.2   community services and living arrangements that cost the same or 
193.3   less than nursing facility care. 
193.4      (c) Screeners shall adhere to the level of care criteria 
193.5   for admission to a certified nursing facility established under 
193.6   section 144.0721.  
193.7      (d) For persons who are eligible for medical assistance or 
193.8   who would be eligible within 180 days of admission to a nursing 
193.9   facility and who are admitted to a nursing facility, the nursing 
193.10  facility must include a screener or the case manager in the 
193.11  discharge planning process for those individuals who the team 
193.12  has determined have discharge potential.  The screener or the 
193.13  case manager must ensure a smooth transition and follow-up for 
193.14  the individual's return to the community. 
193.15     Screeners shall cooperate with other public and private 
193.16  agencies in the community, in order to offer a variety of 
193.17  cost-effective services to the disabled and elderly.  The 
193.18  screeners shall encourage the use of volunteers from families, 
193.19  religious organizations, social clubs, and similar civic and 
193.20  service organizations to provide services. 
193.21     Sec. 35.  Minnesota Statutes 1997 Supplement, section 
193.22  256B.0911, subdivision 7, is amended to read: 
193.23     Subd. 7.  [REIMBURSEMENT FOR CERTIFIED NURSING FACILITIES.] 
193.24  (a) Medical assistance reimbursement for nursing facilities 
193.25  shall be authorized for a medical assistance recipient only if a 
193.26  preadmission screening has been conducted prior to admission or 
193.27  the local county agency has authorized an exemption.  Medical 
193.28  assistance reimbursement for nursing facilities shall not be 
193.29  provided for any recipient who the local screener has determined 
193.30  does not meet the level of care criteria for nursing facility 
193.31  placement or, if indicated, has not had a level II PASARR 
193.32  evaluation completed unless an admission for a recipient with 
193.33  mental illness is approved by the local mental health authority 
193.34  or an admission for a recipient with mental retardation or 
193.35  related condition is approved by the state mental retardation 
193.36  authority.  The county preadmission screening team may deny 
194.1   certified nursing facility admission using the level of care 
194.2   criteria established under section 144.0721 and deny medical 
194.3   assistance reimbursement for certified nursing facility care.  
194.4   Persons receiving care in a certified nursing facility or 
194.5   certified boarding care home who are reassessed by the 
194.6   commissioner of health according to section 144.0722 and 
194.7   determined to no longer meet the level of care criteria for a 
194.8   certified nursing facility or certified boarding care home may 
194.9   no longer remain a resident in the certified nursing facility or 
194.10  certified boarding care home and must be relocated to the 
194.11  community if the persons were admitted on or after July 1, 1998. 
194.12     (b) Persons receiving services under section 256B.0913, 
194.13  subdivisions 1 to 14, or 256B.0915 who are reassessed and found 
194.14  to not meet the level of care criteria for admission to a 
194.15  certified nursing facility or certified boarding care home may 
194.16  no longer receive these services if persons were admitted to the 
194.17  program on or after July 1, 1998.  The commissioner shall make a 
194.18  request to the health care financing administration for a waiver 
194.19  allowing screening team approval of Medicaid payments for 
194.20  certified nursing facility care.  An individual has a choice and 
194.21  makes the final decision between nursing facility placement and 
194.22  community placement after the screening team's recommendation, 
194.23  except as provided in paragraphs (b) and (c).  
194.24     (c) The local county mental health authority or the state 
194.25  mental retardation authority under Public Law Numbers 100-203 
194.26  and 101-508 may prohibit admission to a nursing facility, if the 
194.27  individual does not meet the nursing facility level of care 
194.28  criteria or needs specialized services as defined in Public Law 
194.29  Numbers 100-203 and 101-508.  For purposes of this section, 
194.30  "specialized services" for a person with mental retardation or a 
194.31  related condition means "active treatment" as that term is 
194.32  defined in Code of Federal Regulations, title 42, section 
194.33  483.440(a)(1). 
194.34     (d) Upon the receipt by the commissioner of approval by the 
194.35  Secretary of Health and Human Services of the waiver requested 
194.36  under paragraph (a), the local screener shall deny medical 
195.1   assistance reimbursement for nursing facility care for an 
195.2   individual whose long-term care needs can be met in a 
195.3   community-based setting and whose cost of community-based home 
195.4   care services is less than 75 percent of the average payment for 
195.5   nursing facility care for that individual's case mix 
195.6   classification, and who is either: 
195.7      (i) a current medical assistance recipient being screened 
195.8   for admission to a nursing facility; or 
195.9      (ii) an individual who would be eligible for medical 
195.10  assistance within 180 days of entering a nursing facility and 
195.11  who meets a nursing facility level of care. 
195.12     (e) Appeals from the screening team's recommendation or the 
195.13  county agency's final decision shall be made according to 
195.14  section 256.045, subdivision 3. 
195.15     Sec. 36.  Minnesota Statutes 1997 Supplement, section 
195.16  256B.0913, subdivision 14, is amended to read: 
195.17     Subd. 14.  [REIMBURSEMENT AND RATE ADJUSTMENTS.] (a) 
195.18  Reimbursement for expenditures for the alternative care services 
195.19  as approved by the client's case manager shall be through the 
195.20  invoice processing procedures of the department's Medicaid 
195.21  Management Information System (MMIS).  To receive reimbursement, 
195.22  the county or vendor must submit invoices within 12 months 
195.23  following the date of service.  The county agency and its 
195.24  vendors under contract shall not be reimbursed for services 
195.25  which exceed the county allocation. 
195.26     (b) If a county collects less than 50 percent of the client 
195.27  premiums due under subdivision 12, the commissioner may withhold 
195.28  up to three percent of the county's final alternative care 
195.29  program allocation determined under subdivisions 10 and 11. 
195.30     (c) For fiscal years beginning on or after July 1, 1993, 
195.31  the commissioner of human services shall not provide automatic 
195.32  annual inflation adjustments for alternative care services.  The 
195.33  commissioner of finance shall include as a budget change request 
195.34  in each biennial detailed expenditure budget submitted to the 
195.35  legislature under section 16A.11 annual adjustments in 
195.36  reimbursement rates for alternative care services based on the 
196.1   forecasted percentage change in the Home Health Agency Market 
196.2   Basket of Operating Costs, for the fiscal year beginning July 1, 
196.3   compared to the previous fiscal year, unless otherwise adjusted 
196.4   by statute.  The Home Health Agency Market Basket of Operating 
196.5   Costs is published by Data Resources, Inc.  The forecast to be 
196.6   used is the one published for the calendar quarter beginning 
196.7   January 1, six months prior to the beginning of the fiscal year 
196.8   for which rates are set. 
196.9      (d) The county shall negotiate individual rates with 
196.10  vendors and may be reimbursed for actual costs up to the greater 
196.11  of the county's current approved rate or 60 percent of the 
196.12  maximum rate in fiscal year 1994 and 65 percent of the maximum 
196.13  rate in fiscal year 1995 for each alternative care service.  
196.14  Notwithstanding any other rule or statutory provision to the 
196.15  contrary, the commissioner shall not be authorized to increase 
196.16  rates by an annual inflation factor, unless so authorized by the 
196.17  legislature. 
196.18     (e) (d) On July 1, 1993, the commissioner shall increase 
196.19  the maximum rate for home delivered meals to $4.50 per meal. 
196.20     Sec. 37.  Minnesota Statutes 1997 Supplement, section 
196.21  256B.0915, subdivision 1d, is amended to read: 
196.22     Subd. 1d.  [POSTELIGIBILITY TREATMENT OF INCOME AND 
196.23  RESOURCES FOR ELDERLY WAIVER.] (a) Notwithstanding the 
196.24  provisions of section 256B.056, the commissioner shall make the 
196.25  following amendment to the medical assistance elderly waiver 
196.26  program effective July 1, 1997 1999, or upon federal approval, 
196.27  whichever is later. 
196.28     A recipient's maintenance needs will be an amount equal to 
196.29  the Minnesota supplemental aid equivalent rate as defined in 
196.30  section 256I.03, subdivision 5, plus the medical assistance 
196.31  personal needs allowance as defined in section 256B.35, 
196.32  subdivision 1, paragraph (a), when applying posteligibility 
196.33  treatment of income rules to the gross income of elderly waiver 
196.34  recipients, except for individuals whose income is in excess of 
196.35  the special income standard according to Code of Federal 
196.36  Regulations, title 42, section 435.236.  Recipient maintenance 
197.1   needs shall be adjusted under this provision each July 1. 
197.2      (b) The commissioner of human services shall secure 
197.3   approval of additional elderly waiver slots sufficient to serve 
197.4   persons who will qualify under the revised income standard 
197.5   described in paragraph (a) before implementing section 
197.6   256B.0913, subdivision 16. 
197.7      (c) In implementing this subdivision, the commissioner 
197.8   shall consider allowing persons who would otherwise be eligible 
197.9   for the alternative care program but would qualify for the 
197.10  elderly waiver with a spenddown to remain on the alternative 
197.11  care program. 
197.12     Sec. 38.  Minnesota Statutes 1997 Supplement, section 
197.13  256B.0915, subdivision 3, is amended to read: 
197.14     Subd. 3.  [LIMITS OF CASES, RATES, REIMBURSEMENT, AND 
197.15  FORECASTING.] (a) The number of medical assistance waiver 
197.16  recipients that a county may serve must be allocated according 
197.17  to the number of medical assistance waiver cases open on July 1 
197.18  of each fiscal year.  Additional recipients may be served with 
197.19  the approval of the commissioner. 
197.20     (b) The monthly limit for the cost of waivered services to 
197.21  an individual waiver client shall be the statewide average 
197.22  payment rate of the case mix resident class to which the waiver 
197.23  client would be assigned under the medical assistance case mix 
197.24  reimbursement system.  If medical supplies and equipment or 
197.25  adaptations are or will be purchased for an elderly waiver 
197.26  services recipient, the costs may be prorated on a monthly basis 
197.27  throughout the year in which they are purchased.  If the monthly 
197.28  cost of a recipient's other waivered services exceeds the 
197.29  monthly limit established in this paragraph, the annual cost of 
197.30  the waivered services shall be determined.  In this event, the 
197.31  annual cost of waivered services shall not exceed 12 times the 
197.32  monthly limit calculated in this paragraph.  The statewide 
197.33  average payment rate is calculated by determining the statewide 
197.34  average monthly nursing home rate, effective July 1 of the 
197.35  fiscal year in which the cost is incurred, less the statewide 
197.36  average monthly income of nursing home residents who are age 65 
198.1   or older, and who are medical assistance recipients in the month 
198.2   of March of the previous state fiscal year.  The annual cost 
198.3   divided by 12 of elderly or disabled waivered services for a 
198.4   person who is a nursing facility resident at the time of 
198.5   requesting a determination of eligibility for elderly or 
198.6   disabled waivered services shall be the greater of the monthly 
198.7   payment for:  (i) the resident class assigned under Minnesota 
198.8   Rules, parts 9549.0050 to 9549.0059, for that resident in the 
198.9   nursing facility where the resident currently resides; or (ii) 
198.10  the statewide average payment of the case mix resident class to 
198.11  which the resident would be assigned under the medical 
198.12  assistance case mix reimbursement system, provided that the 
198.13  limit under this clause only applies to persons discharged from 
198.14  a nursing facility and found eligible for waivered services on 
198.15  or after July 1, 1997.  The following costs must be included in 
198.16  determining the total monthly costs for the waiver client: 
198.17     (1) cost of all waivered services, including extended 
198.18  medical supplies and equipment; and 
198.19     (2) cost of skilled nursing, home health aide, and personal 
198.20  care services reimbursable by medical assistance.  
198.21     (c) Medical assistance funding for skilled nursing 
198.22  services, private duty nursing, home health aide, and personal 
198.23  care services for waiver recipients must be approved by the case 
198.24  manager and included in the individual care plan. 
198.25     (d) For both the elderly waiver and the nursing facility 
198.26  disabled waiver, a county may purchase extended supplies and 
198.27  equipment without prior approval from the commissioner when 
198.28  there is no other funding source and the supplies and equipment 
198.29  are specified in the individual's care plan as medically 
198.30  necessary to enable the individual to remain in the community 
198.31  according to the criteria in Minnesota Rules, part 9505.0210, 
198.32  items A and B.  A county is not required to contract with a 
198.33  provider of supplies and equipment if the monthly cost of the 
198.34  supplies and equipment is less than $250.  
198.35     (e) For the fiscal year beginning on July 1, 1993, and for 
198.36  subsequent fiscal years, the commissioner of human services 
199.1   shall not provide automatic annual inflation adjustments for 
199.2   home and community-based waivered services.  The commissioner of 
199.3   finance shall include as a budget change request in each 
199.4   biennial detailed expenditure budget submitted to the 
199.5   legislature under section 16A.11, annual adjustments in 
199.6   reimbursement rates for home and community-based waivered 
199.7   services, based on the forecasted percentage change in the Home 
199.8   Health Agency Market Basket of Operating Costs, for the fiscal 
199.9   year beginning July 1, compared to the previous fiscal year, 
199.10  unless otherwise adjusted by statute.  The Home Health Agency 
199.11  Market Basket of Operating Costs is published by Data Resources, 
199.12  Inc.  The forecast to be used is the one published for the 
199.13  calendar quarter beginning January 1, six months prior to the 
199.14  beginning of the fiscal year for which rates are set.  The adult 
199.15  foster care rate shall be considered a difficulty of care 
199.16  payment and shall not include room and board. 
199.17     (f) The adult foster care daily rate for the elderly and 
199.18  disabled waivers shall be negotiated between the county agency 
199.19  and the foster care provider.  The rate established under this 
199.20  section shall not exceed the state average monthly nursing home 
199.21  payment for the case mix classification to which the individual 
199.22  receiving foster care is assigned; the rate must allow for other 
199.23  waiver and medical assistance home care services to be 
199.24  authorized by the case manager. 
199.25     (g) (f) The assisted living and residential care service 
199.26  rates for elderly and community alternatives for disabled 
199.27  individuals (CADI) waivers shall be made to the vendor as a 
199.28  monthly rate negotiated with the county agency based on an 
199.29  individualized service plan for each resident.  The rate shall 
199.30  not exceed the nonfederal share of the greater of either the 
199.31  statewide or any of the geographic groups' weighted average 
199.32  monthly medical assistance nursing facility payment rate of the 
199.33  case mix resident class to which the elderly or disabled client 
199.34  would be assigned under Minnesota Rules, parts 9549.0050 to 
199.35  9549.0059, unless the services are provided by a home care 
199.36  provider licensed by the department of health and are provided 
200.1   in a building that is registered as a housing with services 
200.2   establishment under chapter 144D and that provides 24-hour 
200.3   supervision.  For alternative care assisted living projects 
200.4   established under Laws 1988, chapter 689, article 2, section 
200.5   256, monthly rates may not exceed 65 percent of the greater of 
200.6   either the statewide or any of the geographic groups' weighted 
200.7   average monthly medical assistance nursing facility payment rate 
200.8   for the case mix resident class to which the elderly or disabled 
200.9   client would be assigned under Minnesota Rules, parts 9549.0050 
200.10  to 9549.0059.  The rate may not cover direct rent or food costs. 
200.11     (h) (g) The county shall negotiate individual rates with 
200.12  vendors and may be reimbursed for actual costs up to the greater 
200.13  of the county's current approved rate or 60 percent of the 
200.14  maximum rate in fiscal year 1994 and 65 percent of the maximum 
200.15  rate in fiscal year 1995 for each service within each program. 
200.16     (i) (h) On July 1, 1993, the commissioner shall increase 
200.17  the maximum rate for home-delivered meals to $4.50 per meal. 
200.18     (j) (i) Reimbursement for the medical assistance recipients 
200.19  under the approved waiver shall be made from the medical 
200.20  assistance account through the invoice processing procedures of 
200.21  the department's Medicaid Management Information System (MMIS), 
200.22  only with the approval of the client's case manager.  The budget 
200.23  for the state share of the Medicaid expenditures shall be 
200.24  forecasted with the medical assistance budget, and shall be 
200.25  consistent with the approved waiver.  
200.26     (k) (j) Beginning July 1, 1991, the state shall reimburse 
200.27  counties according to the payment schedule in section 256.025 
200.28  for the county share of costs incurred under this subdivision on 
200.29  or after January 1, 1991, for individuals who are receiving 
200.30  medical assistance. 
200.31     (l) (k) For the community alternatives for disabled 
200.32  individuals waiver, and nursing facility disabled waivers, 
200.33  county may use waiver funds for the cost of minor adaptations to 
200.34  a client's residence or vehicle without prior approval from the 
200.35  commissioner if there is no other source of funding and the 
200.36  adaptation: 
201.1      (1) is necessary to avoid institutionalization; 
201.2      (2) has no utility apart from the needs of the client; and 
201.3      (3) meets the criteria in Minnesota Rules, part 9505.0210, 
201.4   items A and B.  
201.5   For purposes of this subdivision, "residence" means the client's 
201.6   own home, the client's family residence, or a family foster 
201.7   home.  For purposes of this subdivision, "vehicle" means the 
201.8   client's vehicle, the client's family vehicle, or the client's 
201.9   family foster home vehicle. 
201.10     (m) (l) The commissioner shall establish a maximum rate 
201.11  unit for baths provided by an adult day care provider that are 
201.12  not included in the provider's contractual daily or hourly rate. 
201.13  This maximum rate must equal the home health aide extended rate 
201.14  and shall be paid for baths provided to clients served under the 
201.15  elderly and disabled waivers. 
201.16     Sec. 39.  Minnesota Statutes 1996, section 256B.0916, is 
201.17  amended to read: 
201.18     256B.0916 [EXPANSION OF HOME AND COMMUNITY-BASED SERVICES; 
201.19  MANAGEMENT AND ALLOCATION RESPONSIBILITIES.] 
201.20     (a) The commissioner shall expand availability of home and 
201.21  community-based services for persons with mental retardation and 
201.22  related conditions to the extent allowed by federal law and 
201.23  regulation and shall assist counties in transferring persons 
201.24  from semi-independent living services to home and 
201.25  community-based services.  The commissioner may transfer funds 
201.26  from the state semi-independent living services account 
201.27  available under section 252.275, subdivision 8, and state 
201.28  community social services aids available under section 256E.15 
201.29  to the medical assistance account to pay for the nonfederal 
201.30  share of nonresidential and residential home and community-based 
201.31  services authorized under section 256B.092 for persons 
201.32  transferring from semi-independent living services. 
201.33     (b) Upon federal approval, county boards are not 
201.34  responsible for funding semi-independent living services as a 
201.35  social service for those persons who have transferred to the 
201.36  home and community-based waiver program as a result of the 
202.1   expansion under this subdivision.  The county responsibility for 
202.2   those persons transferred shall be assumed under section 
202.3   256B.092.  Notwithstanding the provisions of section 252.275, 
202.4   the commissioner shall continue to allocate funds under that 
202.5   section for semi-independent living services and county boards 
202.6   shall continue to fund services under sections 256E.06 and 
202.7   256E.14 for those persons who cannot access home and 
202.8   community-based services under section 256B.092. 
202.9      (c) Eighty percent of the state funds made available to the 
202.10  commissioner under section 252.275 as a result of persons 
202.11  transferring from the semi-independent living services program 
202.12  to the home and community-based services program shall be used 
202.13  to fund additional persons in the semi-independent living 
202.14  services program. 
202.15     (d) Beginning August 1, 1998, the commissioner shall issue 
202.16  an annual report on the home and community-based waiver for 
202.17  persons with mental retardation or related conditions, that 
202.18  includes a list of the counties in which less than 95 percent of 
202.19  the allocation provided, excluding the county waivered services 
202.20  reserve, has been committed for two or more quarters during the 
202.21  previous state fiscal year.  For each listed county, the report 
202.22  shall include the amount of funds allocated but not used, the 
202.23  number and ages of individuals screened and waiting for 
202.24  services, the services needed, a description of the technical 
202.25  assistance provided by the commissioner to assist the counties 
202.26  in jointly planning with other counties in order to serve more 
202.27  persons, and additional actions which will be taken to serve 
202.28  those screened and waiting for services. 
202.29     (e) The commissioner shall make available to interested 
202.30  parties, upon request, financial information by county including 
202.31  the amount of resources allocated for the home and 
202.32  community-based waiver for persons with mental retardation and 
202.33  related conditions, the resources committed, the number of 
202.34  persons screened and waiting for services, the type of services 
202.35  requested by those waiting, and the amount of allocated 
202.36  resources not committed. 
203.1      Sec. 40.  Minnesota Statutes 1997 Supplement, section 
203.2   256B.0951, is amended by adding a subdivision to read: 
203.3      Subd. 7.  [WAIVER OF RULES.] The commissioner of health may 
203.4   exempt residents of intermediate care facilities for persons 
203.5   with mental retardation (ICFs/MR) who participate in the 
203.6   three-year quality assurance pilot project established in 
203.7   section 256B.095 from the requirements of Minnesota Rules, 
203.8   chapter 4665, upon approval by the federal government of a 
203.9   waiver of federal certification requirements for ICFs/MR.  The 
203.10  commissioners of health and human services shall apply for any 
203.11  necessary waivers as soon as practicable and shall submit the 
203.12  concept paper to the federal government by June 1, 1998.  
203.13     Sec. 41.  Minnesota Statutes 1996, section 256B.41, 
203.14  subdivision 1, is amended to read: 
203.15     Subdivision 1.  [AUTHORITY.] The commissioner shall 
203.16  establish, by rule, procedures for determining rates for care of 
203.17  residents of nursing facilities which qualify as vendors of 
203.18  medical assistance, and for implementing the provisions of this 
203.19  section and sections 256B.421, 256B.431, 256B.432, 256B.433, 
203.20  256B.47, 256B.48, 256B.50, and 256B.502.  The procedures shall 
203.21  be based on methods and standards that the commissioner finds 
203.22  are adequate to provide for the costs that must be incurred for 
203.23  the care of residents in efficiently and economically operated 
203.24  nursing facilities and shall specify the costs that are 
203.25  allowable for establishing payment rates through medical 
203.26  assistance. 
203.27     Sec. 42.  Minnesota Statutes 1996, section 256B.431, 
203.28  subdivision 2b, is amended to read: 
203.29     Subd. 2b.  [OPERATING COSTS, AFTER JULY 1, 1985.] (a) For 
203.30  rate years beginning on or after July 1, 1985, the commissioner 
203.31  shall establish procedures for determining per diem 
203.32  reimbursement for operating costs.  
203.33     (b) The commissioner shall contract with an econometric 
203.34  firm with recognized expertise in and access to national 
203.35  economic change indices that can be applied to the appropriate 
203.36  cost categories when determining the operating cost payment rate.
204.1      (c) The commissioner shall analyze and evaluate each 
204.2   nursing facility's cost report of allowable operating costs 
204.3   incurred by the nursing facility during the reporting year 
204.4   immediately preceding the rate year for which the payment rate 
204.5   becomes effective.  
204.6      (d) The commissioner shall establish limits on actual 
204.7   allowable historical operating cost per diems based on cost 
204.8   reports of allowable operating costs for the reporting year that 
204.9   begins October 1, 1983, taking into consideration relevant 
204.10  factors including resident needs, geographic location, and size 
204.11  of the nursing facility, and the costs that must be incurred for 
204.12  the care of residents in an efficiently and economically 
204.13  operated nursing facility.  In developing the geographic groups 
204.14  for purposes of reimbursement under this section, the 
204.15  commissioner shall ensure that nursing facilities in any county 
204.16  contiguous to the Minneapolis-St. Paul seven-county metropolitan 
204.17  area are included in the same geographic group.  The limits 
204.18  established by the commissioner shall not be less, in the 
204.19  aggregate, than the 60th percentile of total actual allowable 
204.20  historical operating cost per diems for each group of nursing 
204.21  facilities established under subdivision 1 based on cost reports 
204.22  of allowable operating costs in the previous reporting year.  
204.23  For rate years beginning on or after July 1, 1989, facilities 
204.24  located in geographic group I as described in Minnesota Rules, 
204.25  part 9549.0052, on January 1, 1989, may choose to have the 
204.26  commissioner apply either the care related limits or the other 
204.27  operating cost limits calculated for facilities located in 
204.28  geographic group II, or both, if either of the limits calculated 
204.29  for the group II facilities is higher.  The efficiency incentive 
204.30  for geographic group I nursing facilities must be calculated 
204.31  based on geographic group I limits.  The phase-in must be 
204.32  established utilizing the chosen limits.  For purposes of these 
204.33  exceptions to the geographic grouping requirements, the 
204.34  definitions in Minnesota Rules, parts 9549.0050 to 9549.0059 
204.35  (Emergency), and 9549.0010 to 9549.0080, apply.  The limits 
204.36  established under this paragraph remain in effect until the 
205.1   commissioner establishes a new base period.  Until the new base 
205.2   period is established, the commissioner shall adjust the limits 
205.3   annually using the appropriate economic change indices 
205.4   established in paragraph (e).  In determining allowable 
205.5   historical operating cost per diems for purposes of setting 
205.6   limits and nursing facility payment rates, the commissioner 
205.7   shall divide the allowable historical operating costs by the 
205.8   actual number of resident days, except that where a nursing 
205.9   facility is occupied at less than 90 percent of licensed 
205.10  capacity days, the commissioner may establish procedures to 
205.11  adjust the computation of the per diem to an imputed occupancy 
205.12  level at or below 90 percent.  The commissioner shall establish 
205.13  efficiency incentives as appropriate.  The commissioner may 
205.14  establish efficiency incentives for different operating cost 
205.15  categories.  The commissioner shall consider establishing 
205.16  efficiency incentives in care related cost categories.  The 
205.17  commissioner may combine one or more operating cost categories 
205.18  and may use different methods for calculating payment rates for 
205.19  each operating cost category or combination of operating cost 
205.20  categories.  For the rate year beginning on July 1, 1985, the 
205.21  commissioner shall: 
205.22     (1) allow nursing facilities that have an average length of 
205.23  stay of 180 days or less in their skilled nursing level of care, 
205.24  125 percent of the care related limit and 105 percent of the 
205.25  other operating cost limit established by rule; and 
205.26     (2) exempt nursing facilities licensed on July 1, 1983, by 
205.27  the commissioner to provide residential services for the 
205.28  physically handicapped under Minnesota Rules, parts 9570.2000 to 
205.29  9570.3600, from the care related limits and allow 105 percent of 
205.30  the other operating cost limit established by rule. 
205.31     For the purpose of calculating the other operating cost 
205.32  efficiency incentive for nursing facilities referred to in 
205.33  clause (1)  or (2), the commissioner shall use the other 
205.34  operating cost limit established by rule before application of 
205.35  the 105 percent. 
205.36     (e) The commissioner shall establish a composite index or 
206.1   indices by determining the appropriate economic change 
206.2   indicators to be applied to specific operating cost categories 
206.3   or combination of operating cost categories.  
206.4      (f) Each nursing facility shall receive an operating cost 
206.5   payment rate equal to the sum of the nursing facility's 
206.6   operating cost payment rates for each operating cost category.  
206.7   The operating cost payment rate for an operating cost category 
206.8   shall be the lesser of the nursing facility's historical 
206.9   operating cost in the category increased by the appropriate 
206.10  index established in paragraph (e) for the operating cost 
206.11  category plus an efficiency incentive established pursuant to 
206.12  paragraph (d) or the limit for the operating cost category 
206.13  increased by the same index.  If a nursing facility's actual 
206.14  historic operating costs are greater than the prospective 
206.15  payment rate for that rate year, there shall be no retroactive 
206.16  cost settle-up.  In establishing payment rates for one or more 
206.17  operating cost categories, the commissioner may establish 
206.18  separate rates for different classes of residents based on their 
206.19  relative care needs.  
206.20     (g) The commissioner shall include the reported actual real 
206.21  estate tax liability or payments in lieu of real estate tax of 
206.22  each nursing facility as an operating cost of that nursing 
206.23  facility.  Allowable costs under this subdivision for payments 
206.24  made by a nonprofit nursing facility that are in lieu of real 
206.25  estate taxes shall not exceed the amount which the nursing 
206.26  facility would have paid to a city or township and county for 
206.27  fire, police, sanitation services, and road maintenance costs 
206.28  had real estate taxes been levied on that property for those 
206.29  purposes.  For rate years beginning on or after July 1, 1987, 
206.30  the reported actual real estate tax liability or payments in 
206.31  lieu of real estate tax of nursing facilities shall be adjusted 
206.32  to include an amount equal to one-half of the dollar change in 
206.33  real estate taxes from the prior year.  The commissioner shall 
206.34  include a reported actual special assessment, and reported 
206.35  actual license fees required by the Minnesota department of 
206.36  health, for each nursing facility as an operating cost of that 
207.1   nursing facility.  For rate years beginning on or after July 1, 
207.2   1989, the commissioner shall include a nursing facility's 
207.3   reported public employee retirement act contribution for the 
207.4   reporting year as apportioned to the care-related operating cost 
207.5   categories and other operating cost categories multiplied by the 
207.6   appropriate composite index or indices established pursuant to 
207.7   paragraph (e) as costs under this paragraph.  Total adjusted 
207.8   real estate tax liability, payments in lieu of real estate tax, 
207.9   actual special assessments paid, the indexed public employee 
207.10  retirement act contribution, and license fees paid as required 
207.11  by the Minnesota department of health, for each nursing facility 
207.12  (1) shall be divided by actual resident days in order to compute 
207.13  the operating cost payment rate for this operating cost 
207.14  category, (2) shall not be used to compute the care-related 
207.15  operating cost limits or other operating cost limits established 
207.16  by the commissioner, and (3) shall not be increased by the 
207.17  composite index or indices established pursuant to paragraph 
207.18  (e), unless otherwise indicated in this paragraph. 
207.19     (h) For rate years beginning on or after July 1, 1987, the 
207.20  commissioner shall adjust the rates of a nursing facility that 
207.21  meets the criteria for the special dietary needs of its 
207.22  residents and the requirements in section 31.651.  The 
207.23  adjustment for raw food cost shall be the difference between the 
207.24  nursing facility's allowable historical raw food cost per diem 
207.25  and 115 percent of the median historical allowable raw food cost 
207.26  per diem of the corresponding geographic group. 
207.27     The rate adjustment shall be reduced by the applicable 
207.28  phase-in percentage as provided under subdivision 2h. 
207.29     (i) For the cost report year ending September 30, 1996, and 
207.30  for all subsequent reporting years, certified nursing facilities 
207.31  must identify, differentiate, and record resident day statistics 
207.32  for residents in case mix classification A who, on or after July 
207.33  1, 1996, meet the modified level of care criteria in section 
207.34  144.0721.  The resident day statistics shall be separated into 
207.35  case mix classification A-1 for any resident day meeting the 
207.36  high-function class A level of care criteria and case mix 
208.1   classification A-2 for other case mix class A resident days. 
208.2      Sec. 43.  Minnesota Statutes 1996, section 256B.501, 
208.3   subdivision 2, is amended to read: 
208.4      Subd. 2.  [AUTHORITY.] The commissioner shall establish 
208.5   procedures and rules for determining rates for care of residents 
208.6   of intermediate care facilities for persons with mental 
208.7   retardation or related conditions which qualify as providers of 
208.8   medical assistance and waivered services.  Approved rates shall 
208.9   be established on the basis of methods and standards that the 
208.10  commissioner finds adequate to provide for the costs that must 
208.11  be incurred for the quality care of residents in efficiently and 
208.12  economically operated facilities and services.  The procedures 
208.13  shall specify the costs that are allowable for payment through 
208.14  medical assistance.  The commissioner may use experts from 
208.15  outside the department in the establishment of the procedures. 
208.16     Sec. 44.  Minnesota Statutes 1997 Supplement, section 
208.17  256B.69, subdivision 2, is amended to read: 
208.18     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
208.19  the following terms have the meanings given.  
208.20     (a) "Commissioner" means the commissioner of human services.
208.21  For the remainder of this section, the commissioner's 
208.22  responsibilities for methods and policies for implementing the 
208.23  project will be proposed by the project advisory committees and 
208.24  approved by the commissioner.  
208.25     (b) "Demonstration provider" means a health maintenance 
208.26  organization or, community integrated service network, or 
208.27  accountable provider network authorized and operating under 
208.28  chapter 62D or, 62N, or 62T that participates in the 
208.29  demonstration project according to criteria, standards, methods, 
208.30  and other requirements established for the project and approved 
208.31  by the commissioner.  Notwithstanding the above, Itasca county 
208.32  may continue to participate as a demonstration provider until 
208.33  July 1, 2000. 
208.34     (c) "Eligible individuals" means those persons eligible for 
208.35  medical assistance benefits as defined in sections 256B.055, 
208.36  256B.056, and 256B.06. 
209.1      (d) "Limitation of choice" means suspending freedom of 
209.2   choice while allowing eligible individuals to choose among the 
209.3   demonstration providers.  
209.4      (e) This paragraph supersedes paragraph (c) as long as the 
209.5   Minnesota health care reform waiver remains in effect.  When the 
209.6   waiver expires, this paragraph expires and the commissioner of 
209.7   human services shall publish a notice in the State Register and 
209.8   notify the revisor of statutes.  "Eligible individuals" means 
209.9   those persons eligible for medical assistance benefits as 
209.10  defined in sections 256B.055, 256B.056, and 256B.06.  
209.11  Notwithstanding sections 256B.055, 256B.056, and 256B.06, an 
209.12  individual who becomes ineligible for the program because of 
209.13  failure to submit income reports or recertification forms in a 
209.14  timely manner, shall remain enrolled in the prepaid health plan 
209.15  and shall remain eligible to receive medical assistance coverage 
209.16  through the last day of the month following the month in which 
209.17  the enrollee became ineligible for the medical assistance 
209.18  program. 
209.19     Sec. 45.  Minnesota Statutes 1997 Supplement, section 
209.20  256B.69, subdivision 3a, is amended to read: 
209.21     Subd. 3a.  [COUNTY AUTHORITY.] (a) The commissioner, when 
209.22  implementing the general assistance medical care, or medical 
209.23  assistance prepayment program within a county, must include the 
209.24  county board in the process of development, approval, and 
209.25  issuance of the request for proposals to provide services to 
209.26  eligible individuals within the proposed county.  County boards 
209.27  must be given reasonable opportunity to make recommendations 
209.28  regarding the development, issuance, review of responses, and 
209.29  changes needed in the request for proposals.  The commissioner 
209.30  must provide county boards the opportunity to review each 
209.31  proposal based on the identification of community needs under 
209.32  chapters 145A and 256E and county advocacy activities.  If a 
209.33  county board finds that a proposal does not address certain 
209.34  community needs, the county board and commissioner shall 
209.35  continue efforts for improving the proposal and network prior to 
209.36  the approval of the contract.  The county board shall make 
210.1   recommendations regarding the approval of local networks and 
210.2   their operations to ensure adequate availability and access to 
210.3   covered services.  The provider or health plan must respond 
210.4   directly to county advocates and the state prepaid medical 
210.5   assistance ombudsperson regarding service delivery and must be 
210.6   accountable to the state regarding contracts with medical 
210.7   assistance and general assistance medical care funds.  The 
210.8   county board may recommend a maximum number of participating 
210.9   health plans after considering the size of the enrolling 
210.10  population; ensuring adequate access and capacity; considering 
210.11  the client and county administrative complexity; and considering 
210.12  the need to promote the viability of locally developed health 
210.13  plans.  The county board or a single entity representing a group 
210.14  of county boards and the commissioner shall mutually select 
210.15  health plans for participation at the time of initial 
210.16  implementation of the prepaid medical assistance program in that 
210.17  county or group of counties and at the time of contract renewal. 
210.18  The commissioner shall also seek input for contract requirements 
210.19  from the county or single entity representing a group of county 
210.20  boards at each contract renewal and incorporate those 
210.21  recommendations into the contract negotiation process.  The 
210.22  commissioner, in conjunction with the county board, shall 
210.23  actively seek to develop a mutually agreeable timetable prior to 
210.24  the development of the request for proposal, but counties must 
210.25  agree to initial enrollment beginning on or before January 1, 
210.26  1999, in either the prepaid medical assistance and general 
210.27  assistance medical care programs or county-based purchasing 
210.28  under section 256B.692.  At least 90 days before enrollment in 
210.29  the medical assistance and general assistance medical care 
210.30  prepaid programs begins in a county in which the prepaid 
210.31  programs have not been established, the commissioner shall 
210.32  provide a report to the chairs of senate and house committees 
210.33  having jurisdiction over state health care programs which 
210.34  verifies that the commissioner complied with the requirements 
210.35  for county involvement that are specified in this subdivision. 
210.36     (b) The commissioner shall seek a federal waiver to allow a 
211.1   fee-for-service plan option to MinnesotaCare enrollees.  The 
211.2   commissioner shall develop an increase of the premium fees 
211.3   required under section 256L.06 up to 20 percent of the premium 
211.4   fees for the enrollees who elect the fee-for-service option.  
211.5   Prior to implementation, the commissioner shall submit this fee 
211.6   schedule to the chair and ranking minority member of the senate 
211.7   health care committee, the senate health care and family 
211.8   services funding division, the house of representatives health 
211.9   and human services committee, and the house of representatives 
211.10  health and human services finance division. 
211.11     (c) At the option of the county board, the board may 
211.12  develop contract requirements related to the achievement of 
211.13  local public health goals to meet the health needs of medical 
211.14  assistance and general assistance medical care enrollees.  These 
211.15  requirements must be reasonably related to the performance of 
211.16  health plan functions and within the scope of the medical 
211.17  assistance and general assistance medical care benefit sets.  If 
211.18  the county board and the commissioner mutually agree to such 
211.19  requirements, the department shall include such requirements in 
211.20  all health plan contracts governing the prepaid medical 
211.21  assistance and general assistance medical care programs in that 
211.22  county at initial implementation of the program in that county 
211.23  and at the time of contract renewal.  The county board may 
211.24  participate in the enforcement of the contract provisions 
211.25  related to local public health goals. 
211.26     (d) For counties in which prepaid medical assistance and 
211.27  general assistance medical care programs have not been 
211.28  established, the commissioner shall not implement those programs 
211.29  if a county board submits acceptable and timely preliminary and 
211.30  final proposals under section 256B.692, until county-based 
211.31  purchasing is no longer operational in that county.  For 
211.32  counties in which prepaid medical assistance and general 
211.33  assistance medical care programs are in existence on or after 
211.34  September 1, 1997, the commissioner must terminate contracts 
211.35  with health plans according to section 256B.692, subdivision 5, 
211.36  if the county board submits and the commissioner accepts 
212.1   preliminary and final proposals according to that subdivision.  
212.2   The commissioner is not required to terminate contracts that 
212.3   begin on or after September 1, 1997, according to section 
212.4   256B.692 until two years have elapsed from the date of initial 
212.5   enrollment. 
212.6      (e) In the event that a county board or a single entity 
212.7   representing a group of county boards and the commissioner 
212.8   cannot reach agreement regarding:  (i) the selection of 
212.9   participating health plans in that county; (ii) contract 
212.10  requirements; or (iii) implementation and enforcement of county 
212.11  requirements including provisions regarding local public health 
212.12  goals, the commissioner shall resolve all disputes after taking 
212.13  into account the recommendations of a three-person mediation 
212.14  panel.  The panel shall be composed of one designee of the 
212.15  president of the association of Minnesota counties, one designee 
212.16  of the commissioner of human services, and one designee of the 
212.17  commissioner of health. 
212.18     (f) If a county which elects to implement county-based 
212.19  purchasing ceases to implement county-based purchasing, it is 
212.20  prohibited from assuming the responsibility of county-based 
212.21  purchasing for a period of five years from the date it 
212.22  discontinues purchasing. 
212.23     (g) Notwithstanding the requirement in this subdivision 
212.24  that a county must agree to initial enrollment on or before 
212.25  January 1, 1999, the commissioner shall grant a delay of up to 
212.26  nine months in the implementation of the county-based purchasing 
212.27  authorized in section 256B.692 if the county or group of 
212.28  counties has submitted a preliminary proposal for county-based 
212.29  purchasing by September 1, 1997, has not already implemented the 
212.30  prepaid medical assistance program before January 1, 1998, and 
212.31  has submitted a written request for the delay to the 
212.32  commissioner by July 1, 1998.  In order for the delay to be 
212.33  continued, the county or group of counties must also submit to 
212.34  the commissioner the following information by December 1, 1998.  
212.35  The information must: 
212.36     (1) identify the proposed date of implementation, not later 
213.1   than October 1, 1999; 
213.2      (2) include copies of the county board resolutions which 
213.3   demonstrate the continued commitment to the implementation of 
213.4   county-based purchasing by the proposed date.  County board 
213.5   authorization may remain contingent on the submission of a final 
213.6   proposal which meets the requirements of section 256B.692, 
213.7   subdivision 5, paragraph (b); 
213.8      (3) demonstrate actions taken for the establishment of a 
213.9   governance structure between the participating counties and 
213.10  describe how the fiduciary responsibilities of county-based 
213.11  purchasing will be allocated between the counties, if more than 
213.12  one county is involved in the proposal; 
213.13     (4) describe how the risk of a deficit will be managed in 
213.14  the event expenditures are greater than total capitation 
213.15  payments.  This description must identify how any of the 
213.16  following strategies will be used: 
213.17     (i) risk contracts with licensed health plans; 
213.18     (ii) risk arrangements with providers who are not licensed 
213.19  health plans; 
213.20     (iii) risk arrangements with other licensed insurance 
213.21  entities; and 
213.22     (iv) funding from other county resources; 
213.23     (5) include, if county-based purchasing will not contract 
213.24  with licensed health plans or provider networks, letters of 
213.25  interest from local providers in at least the categories of 
213.26  hospital, physician, mental health, and pharmacy which express 
213.27  interest in contracting for services.  These letters must 
213.28  recognize any risk transfer identified in clause (4), item (ii); 
213.29  and 
213.30     (6) describe the options being considered to obtain the 
213.31  administrative services required in section 256B.692, 
213.32  subdivision 3, clauses (3) and (5). 
213.33     (h) For counties which receive a delay under this 
213.34  subdivision, the final proposals required under section 
213.35  256B.692, subdivision 5, paragraph (b), must be submitted at 
213.36  least six months prior to the requested implementation date.  
214.1   Authority to implement county-based purchasing remains 
214.2   contingent on approval of the final proposal as required under 
214.3   section 256B.692. 
214.4      (i) If the commissioner is unable to provide 
214.5   county-specific, individual-level fee-for-service claims to 
214.6   counties by June 4, 1998, the commissioner shall grant a delay 
214.7   under paragraph (g) of up to 12 months in the implementation of 
214.8   county-based purchasing, and shall require implementation not 
214.9   later than January 1, 2000.  In order to receive an extension of 
214.10  the proposed date of implementation under this paragraph, a 
214.11  county or group of counties must submit a written request for 
214.12  the extension to the commissioner by August 1, 1998, must submit 
214.13  the information required under paragraph (g) by December 1, 
214.14  1998, and must submit a final proposal as provided under 
214.15  paragraph (h). 
214.16     Sec. 46.  Minnesota Statutes 1996, section 256B.69, 
214.17  subdivision 22, is amended to read: 
214.18     Subd. 22.  [IMPACT ON PUBLIC OR TEACHING HOSPITALS AND 
214.19  COMMUNITY CLINICS.] (a) Before implementing prepaid programs in 
214.20  counties with a county operated or affiliated public teaching 
214.21  hospital or a hospital or clinic operated by the University of 
214.22  Minnesota, the commissioner shall consider the risks the prepaid 
214.23  program creates for the hospital and allow the county or 
214.24  hospital the opportunity to participate in the program, provided 
214.25  the terms of participation in the program are competitive with 
214.26  the terms of other participants. 
214.27     (b) Prepaid health plans serving counties with a nonprofit 
214.28  community clinic or community health services agency must 
214.29  contract with the clinic or agency to provide services to 
214.30  clients who choose to receive services from the clinic or 
214.31  agency, if the clinic or agency agrees to payment rates that are 
214.32  competitive with rates paid to other health plan providers for 
214.33  the same or similar services. 
214.34     (c) For purposes of this subdivision, "nonprofit community 
214.35  clinic" includes, but is not limited to, a community mental 
214.36  health center as defined in sections 245.62 and 256B.0625, 
215.1   subdivision 5. 
215.2      Sec. 47.  Minnesota Statutes 1996, section 256B.69, is 
215.3   amended by adding a subdivision to read: 
215.4      Subd. 25.  [AMERICAN INDIAN RECIPIENTS.] (a) Beginning on 
215.5   or after January 1, 1999, for American Indian recipients of 
215.6   medical assistance who are required to enroll with a 
215.7   demonstration provider under subdivision 4 or in a county-based 
215.8   purchasing entity, if applicable, under section 256B.692, 
215.9   medical assistance shall cover health care services provided at 
215.10  American Indian health services facilities and facilities 
215.11  operated by a tribe or tribal organization under funding 
215.12  authorized by United States Code, title 25, sections 450f to 
215.13  450n, or title III of the Indian Self-Determination and 
215.14  Education Assistance Act, Public Law Number 93-638, if those 
215.15  services would otherwise be covered under section 256B.0625.  
215.16  Payments for services provided under this subdivision shall be 
215.17  made on a fee-for-service basis, and may, at the option of the 
215.18  tribe or tribal organization, be made according to rates 
215.19  authorized under sections 256.969, subdivision 16, and 
215.20  256B.0625, subdivision 34.  Implementation of this purchasing 
215.21  model is contingent on federal approval. 
215.22     (b) The commissioner of human services, in consultation 
215.23  with the tribal governments, shall develop a plan for tribes to 
215.24  assist in the enrollment process for American Indian recipients 
215.25  enrolled in the prepaid medical assistance program under this 
215.26  section or the prepaid general assistance medical care program 
215.27  under section 256D.03, subdivision 4, paragraph (d).  This plan 
215.28  also shall address how tribes will be included in ensuring the 
215.29  coordination of care for American Indian recipients between 
215.30  Indian health service or tribal providers and other providers. 
215.31     (c) For purposes of this subdivision, "American Indian" has 
215.32  the meaning given to persons to whom services will be provided 
215.33  for in Code of Federal Regulations, title 42, section 36.12. 
215.34     (d) This subdivision also applies to American Indian 
215.35  recipients of general assistance medical care and to the prepaid 
215.36  general assistance medical care program under section 256D.03, 
216.1   subdivision 4, paragraph (d). 
216.2      Sec. 48.  Minnesota Statutes 1996, section 256B.69, is 
216.3   amended by adding a subdivision to read: 
216.4      Subd. 26.  [INFORMATION FOR PERSONS WITH LIMITED 
216.5   ENGLISH-LANGUAGE PROFICIENCY.] Managed care contracts entered 
216.6   into under this section and sections 256D.03, subdivision 4, 
216.7   paragraph (d), and 256L.12 must require demonstration providers 
216.8   to inform enrollees that upon request the enrollee can obtain a 
216.9   certificate of coverage in the following languages:  Spanish, 
216.10  Hmong, Laotian, Russian, Somali, Vietnamese, or Cambodian.  Upon 
216.11  request, the demonstration provider must provide the enrollee 
216.12  with a certificate of coverage in the specified language of 
216.13  preference. 
216.14     Sec. 49.  Minnesota Statutes 1997 Supplement, section 
216.15  256B.692, subdivision 2, is amended to read: 
216.16     Subd. 2.  [DUTIES OF THE COMMISSIONER OF HEALTH.] 
216.17  Notwithstanding chapters 62D and 62N, a county that elects to 
216.18  purchase medical assistance and general assistance medical care 
216.19  in return for a fixed sum without regard to the frequency or 
216.20  extent of services furnished to any particular enrollee is not 
216.21  required to obtain a certificate of authority under chapter 62D 
216.22  or 62N.  A county that elects to purchase medical assistance and 
216.23  general assistance medical care services under this section must 
216.24  satisfy the commissioner of health that the requirements of 
216.25  chapter 62D, applicable to health maintenance organizations, or 
216.26  chapter 62N, applicable to community integrated service 
216.27  networks, will be met.  A county must also assure the 
216.28  commissioner of health that the requirements of section sections 
216.29  62J.041; 62J.48; 62J.71 to 62J.73; 62M.01 to 62M.16; all 
216.30  applicable provisions of chapter 62Q, including sections 62Q.07; 
216.31  62Q.075; 62Q.105; 62Q.1055; 62Q.106; 62Q.11; 62Q.12; 62Q.135; 
216.32  62Q.14; 62Q.145; 62Q.19; 62Q.23, paragraph (c); 62Q.30; 62Q.43; 
216.33  62Q.47; 62Q.50; 62Q.52 to 62Q.56; 62Q.58; 62Q.64; and 72A.201 
216.34  will be met.  All enforcement and rulemaking powers available 
216.35  under chapters 62D and, 62J, 62M, 62N, and 62Q are hereby 
216.36  granted to the commissioner of health with respect to counties 
217.1   that purchase medical assistance and general assistance medical 
217.2   care services under this section. 
217.3      Sec. 50.  Minnesota Statutes 1997 Supplement, section 
217.4   256B.692, subdivision 5, is amended to read: 
217.5      Subd. 5.  [COUNTY PROPOSALS.] (a) On or before September 1, 
217.6   1997, a county board that wishes to purchase or provide health 
217.7   care under this section must submit a preliminary proposal that 
217.8   substantially demonstrates the county's ability to meet all the 
217.9   requirements of this section in response to criteria for 
217.10  proposals issued by the department on or before July 1, 1997.  
217.11  Counties submitting preliminary proposals must establish a local 
217.12  planning process that involves input from medical assistance and 
217.13  general assistance medical care recipients, recipient advocates, 
217.14  providers and representatives of local school districts, labor, 
217.15  and tribal government to advise on the development of a final 
217.16  proposal and its implementation.  
217.17     (b) The county board must submit a final proposal on or 
217.18  before July 1, 1998, that demonstrates the ability to meet all 
217.19  the requirements of this section, including beginning enrollment 
217.20  on January 1, 1999, unless a delay has been granted under 
217.21  section 256B.69, subdivision 3a, paragraph (g).  
217.22     (c) After January 1, 1999, for a county in which the 
217.23  prepaid medical assistance program is in existence, the county 
217.24  board must submit a preliminary proposal at least 15 months 
217.25  prior to termination of health plan contracts in that county and 
217.26  a final proposal six months prior to the health plan contract 
217.27  termination date in order to begin enrollment after the 
217.28  termination.  Nothing in this section shall impede or delay 
217.29  implementation or continuation of the prepaid medical assistance 
217.30  and general assistance medical care programs in counties for 
217.31  which the board does not submit a proposal, or submits a 
217.32  proposal that is not in compliance with this section. 
217.33     (d) The commissioner is not required to terminate contracts 
217.34  for the prepaid medical assistance and prepaid general 
217.35  assistance medical care programs that begin on or after 
217.36  September 1, 1997, in a county for which a county board has 
218.1   submitted a proposal under this paragraph, until two years have 
218.2   elapsed from the date of initial enrollment in the prepaid 
218.3   medical assistance and prepaid general assistance medical care 
218.4   programs. 
218.5      Sec. 51.  Minnesota Statutes 1997 Supplement, section 
218.6   256B.77, subdivision 3, is amended to read: 
218.7      Subd. 3.  [ASSURANCES TO THE COMMISSIONER OF HEALTH.] A 
218.8   county authority that elects to participate in a demonstration 
218.9   project for people with disabilities under this section is not 
218.10  required to obtain a certificate of authority under chapter 62D 
218.11  or 62N.  A county authority that elects to participate in a 
218.12  demonstration project for people with disabilities under this 
218.13  section must assure the commissioner of health that the 
218.14  requirements of chapters 62D and 62N, and section 256B.692, 
218.15  subdivision 2, are met.  All enforcement and rulemaking powers 
218.16  available under chapters 62D and, 62J, 62M, 62N, and 62Q are 
218.17  granted to the commissioner of health with respect to the county 
218.18  authorities that contract with the commissioner to purchase 
218.19  services in a demonstration project for people with disabilities 
218.20  under this section. 
218.21     Sec. 52.  Minnesota Statutes 1997 Supplement, section 
218.22  256B.77, subdivision 7a, is amended to read: 
218.23     Subd. 7a.  [ELIGIBLE INDIVIDUALS.] (a) Persons are eligible 
218.24  for the demonstration project as provided in this subdivision. 
218.25     (b) "Eligible individuals" means those persons living in 
218.26  the demonstration site who are eligible for medical assistance 
218.27  and are disabled based on a disability determination under 
218.28  section 256B.055, subdivisions 7 and 12, or who are eligible for 
218.29  medical assistance and have been diagnosed as having: 
218.30     (1) serious and persistent mental illness as defined in 
218.31  section 245.462, subdivision 20; 
218.32     (2) severe emotional disturbance as defined in section 
218.33  245.487, subdivision 6; or 
218.34     (3) mental retardation, or being a mentally retarded person 
218.35  as defined in section 252A.02, or a related condition as defined 
218.36  in section 252.27, subdivision 1a. 
219.1   Other individuals may be included at the option of the county 
219.2   authority based on agreement with the commissioner. 
219.3      (c) Eligible individuals residing on a federally recognized 
219.4   Indian reservation may be excluded from participation in the 
219.5   demonstration project at the discretion of the tribal government 
219.6   based on agreement with the commissioner, in consultation with 
219.7   the county authority. 
219.8      (d) Eligible individuals include individuals in excluded 
219.9   time status, as defined in chapter 256G.  Enrollees in excluded 
219.10  time at the time of enrollment shall remain in excluded time 
219.11  status as long as they live in the demonstration site and shall 
219.12  be eligible for 90 days after placement outside the 
219.13  demonstration site if they move to excluded time status in a 
219.14  county within Minnesota other than their county of financial 
219.15  responsibility. 
219.16     (e) A person who is a sexual psychopathic personality as 
219.17  defined in section 253B.02, subdivision 18a, or a sexually 
219.18  dangerous person as defined in section 253B.02, subdivision 18b, 
219.19  is excluded from enrollment in the demonstration project. 
219.20     Sec. 53.  Minnesota Statutes 1997 Supplement, section 
219.21  256B.77, subdivision 10, is amended to read: 
219.22     Subd. 10.  [CAPITATION PAYMENT.] (a) The commissioner shall 
219.23  pay a capitation payment to the county authority and, when 
219.24  applicable under subdivision 6, paragraph (a), to the service 
219.25  delivery organization for each medical assistance eligible 
219.26  enrollee.  The commissioner shall develop capitation payment 
219.27  rates for the initial contract period for each demonstration 
219.28  site in consultation with an independent actuary, to ensure that 
219.29  the cost of services under the demonstration project does not 
219.30  exceed the estimated cost for medical assistance services for 
219.31  the covered population under the fee-for-service system for the 
219.32  demonstration period.  For each year of the demonstration 
219.33  project, the capitation payment rate shall be based on 96 
219.34  percent of the projected per person costs that would otherwise 
219.35  have been paid under medical assistance fee-for-service during 
219.36  each of those years.  Rates shall be adjusted within the limits 
220.1   of the available risk adjustment technology, as mandated by 
220.2   section 62Q.03.  In addition, the commissioner shall implement 
220.3   appropriate risk and savings sharing provisions with county 
220.4   administrative entities and, when applicable under subdivision 
220.5   6, paragraph (a), service delivery organizations within the 
220.6   projected budget limits.  Capitation rates shall be adjusted, at 
220.7   least annually, to include any rate increases and payments for 
220.8   expanded or newly covered services for eligible individuals.  
220.9   The initial demonstration project rate shall include an amount 
220.10  in addition to the fee-for-service payments to adjust for 
220.11  underutilization of dental services.  Any savings beyond those 
220.12  allowed for the county authority, county administrative entity, 
220.13  or service delivery organization shall be first used to meet the 
220.14  unmet needs of eligible individuals.  Payments to providers 
220.15  participating in the project are exempt from the requirements of 
220.16  sections 256.966 and 256B.03, subdivision 2. 
220.17     (b) The commissioner shall monitor and evaluate annually 
220.18  the effect of the discount on consumers, the county authority, 
220.19  and providers of disability services.  Findings shall be 
220.20  reported and recommendations made, as appropriate, to ensure 
220.21  that the discount effect does not adversely affect the ability 
220.22  of the county administrative entity or providers of services to 
220.23  provide appropriate services to eligible individuals, and does 
220.24  not result in cost shifting of eligible individuals to the 
220.25  county authority. 
220.26     Sec. 54.  Minnesota Statutes 1997 Supplement, section 
220.27  256B.77, subdivision 12, is amended to read: 
220.28     Subd. 12.  [SERVICE COORDINATION.] (a) For purposes of this 
220.29  section, "service coordinator" means an individual selected by 
220.30  the enrollee or the enrollee's legal representative and 
220.31  authorized by the county administrative entity or service 
220.32  delivery organization to work in partnership with the enrollee 
220.33  to develop, coordinate, and in some instances, provide supports 
220.34  and services identified in the personal support plan.  Service 
220.35  coordinators may only provide services and supports if the 
220.36  enrollee is informed of potential conflicts of interest, is 
221.1   given alternatives, and gives informed consent.  Eligible 
221.2   service coordinators are individuals age 18 or older who meet 
221.3   the qualifications as described in paragraph (b).  Enrollees, 
221.4   their legal representatives, or their advocates are eligible to 
221.5   be service coordinators if they have the capabilities to perform 
221.6   the activities and functions outlined in paragraph (b).  
221.7   Providers licensed under chapter 245A to provide residential 
221.8   services, or providers who are providing residential services 
221.9   covered under the group residential housing program may not act 
221.10  as service coordinator for enrollees for whom they provide 
221.11  residential services.  This does not apply to providers of 
221.12  short-term detoxification services.  Each county administrative 
221.13  entity or service delivery organization may develop further 
221.14  criteria for eligible vendors of service coordination during the 
221.15  demonstration period and shall determine whom it contracts with 
221.16  or employs to provide service coordination.  County 
221.17  administrative entities and service delivery organizations may 
221.18  pay enrollees or their advocates or legal representatives for 
221.19  service coordination activities. 
221.20     (b) The service coordinator shall act as a facilitator, 
221.21  working in partnership with the enrollee to ensure that their 
221.22  needs are identified and addressed.  The level of involvement of 
221.23  the service coordinator shall depend on the needs and desires of 
221.24  the enrollee.  The service coordinator shall have the knowledge, 
221.25  skills, and abilities to, and is responsible for: 
221.26     (1) arranging for an initial assessment, and periodic 
221.27  reassessment as necessary, of supports and services based on the 
221.28  enrollee's strengths, needs, choices, and preferences in life 
221.29  domain areas; 
221.30     (2) developing and updating the personal support plan based 
221.31  on relevant ongoing assessment; 
221.32     (3) arranging for and coordinating the provisions of 
221.33  supports and services, including knowledgeable and skilled 
221.34  specialty services and prevention and early intervention 
221.35  services, within the limitations negotiated with the county 
221.36  administrative entity or service delivery organization; 
222.1      (4) assisting the enrollee and the enrollee's legal 
222.2   representative, if any, to maximize informed choice of and 
222.3   control over services and supports and to exercise the 
222.4   enrollee's rights and advocate on behalf of the enrollee; 
222.5      (5) monitoring the progress toward achieving the enrollee's 
222.6   outcomes in order to evaluate and adjust the timeliness and 
222.7   adequacy of the implementation of the personal support plan; 
222.8      (6) facilitating meetings and effectively collaborating 
222.9   with a variety of agencies and persons, including attending 
222.10  individual family service plan and individual education plan 
222.11  meetings when requested by the enrollee or the enrollee's legal 
222.12  representative; 
222.13     (7) soliciting and analyzing relevant information; 
222.14     (8) communicating effectively with the enrollee and with 
222.15  other individuals participating in the enrollee's plan; 
222.16     (9) educating and communicating effectively with the 
222.17  enrollee about good health care practices and risk to the 
222.18  enrollee's health with certain behaviors; 
222.19     (10) having knowledge of basic enrollee protection 
222.20  requirements, including data privacy; 
222.21     (11) informing, educating, and assisting the enrollee in 
222.22  identifying available service providers and accessing needed 
222.23  resources and services beyond the limitations of the medical 
222.24  assistance benefit set covered services; and 
222.25     (12) providing other services as identified in the personal 
222.26  support plan.  
222.27     (c) For the demonstration project, the qualifications and 
222.28  standards for service coordination in this section shall replace 
222.29  comparable existing provisions of existing statutes and rules 
222.30  governing case management for eligible individuals. 
222.31     (d) The provisions of this subdivision apply only to the 
222.32  demonstration sites that begin implementation on July 1, 
222.33  1998 designated by the commissioner under subdivision 5.  All 
222.34  other demonstration sites must comply with laws and rules 
222.35  governing case management services for eligible individuals in 
222.36  effect when the site begins the demonstration project. 
223.1      Sec. 55.  Minnesota Statutes 1996, section 256D.03, 
223.2   subdivision 4, is amended to read: 
223.3      Subd. 4.  [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] (a) 
223.4   For a person who is eligible under subdivision 3, paragraph (a), 
223.5   clause (3), general assistance medical care covers, except as 
223.6   provided in paragraph (c): 
223.7      (1) inpatient hospital services; 
223.8      (2) outpatient hospital services; 
223.9      (3) services provided by Medicare certified rehabilitation 
223.10  agencies; 
223.11     (4) prescription drugs and other products recommended 
223.12  through the process established in section 256B.0625, 
223.13  subdivision 13; 
223.14     (5) equipment necessary to administer insulin and 
223.15  diagnostic supplies and equipment for diabetics to monitor blood 
223.16  sugar level; 
223.17     (6) eyeglasses and eye examinations provided by a physician 
223.18  or optometrist; 
223.19     (7) hearing aids; 
223.20     (8) prosthetic devices; 
223.21     (9) laboratory and X-ray services; 
223.22     (10) physician's services; 
223.23     (11) medical transportation; 
223.24     (12) chiropractic services as covered under the medical 
223.25  assistance program; 
223.26     (13) podiatric services; 
223.27     (14) dental services; 
223.28     (15) outpatient services provided by a mental health center 
223.29  or clinic that is under contract with the county board and is 
223.30  established under section 245.62; 
223.31     (16) day treatment services for mental illness provided 
223.32  under contract with the county board; 
223.33     (17) prescribed medications for persons who have been 
223.34  diagnosed as mentally ill as necessary to prevent more 
223.35  restrictive institutionalization; 
223.36     (18) case management services for a person with serious and 
224.1   persistent mental illness who would be eligible for medical 
224.2   assistance except that the person resides in an institution for 
224.3   mental diseases; 
224.4      (19) psychological services, medical supplies and 
224.5   equipment, and Medicare premiums, coinsurance and deductible 
224.6   payments; 
224.7      (20) (19) medical equipment not specifically listed in this 
224.8   paragraph when the use of the equipment will prevent the need 
224.9   for costlier services that are reimbursable under this 
224.10  subdivision; 
224.11     (21) (20) services performed by a certified pediatric nurse 
224.12  practitioner, a certified family nurse practitioner, a certified 
224.13  adult nurse practitioner, a certified obstetric/gynecological 
224.14  nurse practitioner, or a certified geriatric nurse practitioner 
224.15  in independent practice, if the services are otherwise covered 
224.16  under this chapter as a physician service, and if the service is 
224.17  within the scope of practice of the nurse practitioner's license 
224.18  as a registered nurse, as defined in section 148.171; and 
224.19     (22) (21) services of a certified public health nurse or a 
224.20  registered nurse practicing in a public health nursing clinic 
224.21  that is a department of, or that operates under the direct 
224.22  authority of, a unit of government, if the service is within the 
224.23  scope of practice of the public health nurse's license as a 
224.24  registered nurse, as defined in section 148.171.  
224.25     (b) Except as provided in paragraph (c), for a recipient 
224.26  who is eligible under subdivision 3, paragraph (a), clause (1) 
224.27  or (2), general assistance medical care covers the services 
224.28  listed in paragraph (a) with the exception of special 
224.29  transportation services. 
224.30     (c) Gender reassignment surgery and related services are 
224.31  not covered services under this subdivision unless the 
224.32  individual began receiving gender reassignment services prior to 
224.33  July 1, 1995.  
224.34     (d) In order to contain costs, the commissioner of human 
224.35  services shall select vendors of medical care who can provide 
224.36  the most economical care consistent with high medical standards 
225.1   and shall where possible contract with organizations on a 
225.2   prepaid capitation basis to provide these services.  The 
225.3   commissioner shall consider proposals by counties and vendors 
225.4   for prepaid health plans, competitive bidding programs, block 
225.5   grants, or other vendor payment mechanisms designed to provide 
225.6   services in an economical manner or to control utilization, with 
225.7   safeguards to ensure that necessary services are provided.  
225.8   Before implementing prepaid programs in counties with a county 
225.9   operated or affiliated public teaching hospital or a hospital or 
225.10  clinic operated by the University of Minnesota, the commissioner 
225.11  shall consider the risks the prepaid program creates for the 
225.12  hospital and allow the county or hospital the opportunity to 
225.13  participate in the program in a manner that reflects the risk of 
225.14  adverse selection and the nature of the patients served by the 
225.15  hospital, provided the terms of participation in the program are 
225.16  competitive with the terms of other participants considering the 
225.17  nature of the population served.  Payment for services provided 
225.18  pursuant to this subdivision shall be as provided to medical 
225.19  assistance vendors of these services under sections 256B.02, 
225.20  subdivision 8, and 256B.0625.  For payments made during fiscal 
225.21  year 1990 and later years, the commissioner shall consult with 
225.22  an independent actuary in establishing prepayment rates, but 
225.23  shall retain final control over the rate methodology.  
225.24  Notwithstanding the provisions of subdivision 3, an individual 
225.25  who becomes ineligible for general assistance medical care 
225.26  because of failure to submit income reports or recertification 
225.27  forms in a timely manner, shall remain enrolled in the prepaid 
225.28  health plan and shall remain eligible for general assistance 
225.29  medical care coverage through the last day of the month in which 
225.30  the enrollee became ineligible for general assistance medical 
225.31  care. 
225.32     (e) The commissioner of human services may reduce payments 
225.33  provided under sections 256D.01 to 256D.21 and 261.23 in order 
225.34  to remain within the amount appropriated for general assistance 
225.35  medical care, within the following restrictions.: 
225.36     (i) For the period July 1, 1985 to December 31, 1985, 
226.1   reductions below the cost per service unit allowable under 
226.2   section 256.966, are permitted only as follows:  payments for 
226.3   inpatient and outpatient hospital care provided in response to a 
226.4   primary diagnosis of chemical dependency or mental illness may 
226.5   be reduced no more than 30 percent; payments for all other 
226.6   inpatient hospital care may be reduced no more than 20 percent.  
226.7   Reductions below the payments allowable under general assistance 
226.8   medical care for the remaining general assistance medical care 
226.9   services allowable under this subdivision may be reduced no more 
226.10  than ten percent. 
226.11     (ii) For the period January 1, 1986 to December 31, 1986, 
226.12  reductions below the cost per service unit allowable under 
226.13  section 256.966 are permitted only as follows:  payments for 
226.14  inpatient and outpatient hospital care provided in response to a 
226.15  primary diagnosis of chemical dependency or mental illness may 
226.16  be reduced no more than 20 percent; payments for all other 
226.17  inpatient hospital care may be reduced no more than 15 percent.  
226.18  Reductions below the payments allowable under general assistance 
226.19  medical care for the remaining general assistance medical care 
226.20  services allowable under this subdivision may be reduced no more 
226.21  than five percent. 
226.22     (iii) For the period January 1, 1987 to June 30, 1987, 
226.23  reductions below the cost per service unit allowable under 
226.24  section 256.966 are permitted only as follows:  payments for 
226.25  inpatient and outpatient hospital care provided in response to a 
226.26  primary diagnosis of chemical dependency or mental illness may 
226.27  be reduced no more than 15 percent; payments for all other 
226.28  inpatient hospital care may be reduced no more than ten 
226.29  percent.  Reductions below the payments allowable under medical 
226.30  assistance for the remaining general assistance medical care 
226.31  services allowable under this subdivision may be reduced no more 
226.32  than five percent.  
226.33     (iv) For the period July 1, 1987 to June 30, 1988, 
226.34  reductions below the cost per service unit allowable under 
226.35  section 256.966 are permitted only as follows:  payments for 
226.36  inpatient and outpatient hospital care provided in response to a 
227.1   primary diagnosis of chemical dependency or mental illness may 
227.2   be reduced no more than 15 percent; payments for all other 
227.3   inpatient hospital care may be reduced no more than five percent.
227.4   Reductions below the payments allowable under medical assistance 
227.5   for the remaining general assistance medical care services 
227.6   allowable under this subdivision may be reduced no more than 
227.7   five percent. 
227.8      (v) For the period July 1, 1988 to June 30, 1989, 
227.9   reductions below the cost per service unit allowable under 
227.10  section 256.966 are permitted only as follows:  payments for 
227.11  inpatient and outpatient hospital care provided in response to a 
227.12  primary diagnosis of chemical dependency or mental illness may 
227.13  be reduced no more than 15 percent; payments for all other 
227.14  inpatient hospital care may not be reduced.  Reductions below 
227.15  the payments allowable under medical assistance for the 
227.16  remaining general assistance medical care services allowable 
227.17  under this subdivision may be reduced no more than five percent. 
227.18     (f) There shall be no copayment required of any recipient 
227.19  of benefits for any services provided under this subdivision.  A 
227.20  hospital receiving a reduced payment as a result of this section 
227.21  may apply the unpaid balance toward satisfaction of the 
227.22  hospital's bad debts. 
227.23     (f) (g) Any county may, from its own resources, provide 
227.24  medical payments for which state payments are not made. 
227.25     (g) (h) Chemical dependency services that are reimbursed 
227.26  under chapter 254B must not be reimbursed under general 
227.27  assistance medical care. 
227.28     (h) (i) The maximum payment for new vendors enrolled in the 
227.29  general assistance medical care program after the base year 
227.30  shall be determined from the average usual and customary charge 
227.31  of the same vendor type enrolled in the base year. 
227.32     (i) (j) The conditions of payment for services under this 
227.33  subdivision are the same as the conditions specified in rules 
227.34  adopted under chapter 256B governing the medical assistance 
227.35  program, unless otherwise provided by statute or rule. 
227.36     Sec. 56.  Minnesota Statutes 1996, section 256D.03, is 
228.1   amended by adding a subdivision to read: 
228.2      Subd. 9.  [PAYMENT FOR AMBULANCE SERVICES.] Effective for 
228.3   services rendered on or after July 1, 1999, general assistance 
228.4   medical care payments for ambulance services shall be increased 
228.5   by five percent. 
228.6      Sec. 57.  Laws 1997, chapter 195, section 5, is amended to 
228.7   read: 
228.8      Sec. 5.  [PERSONAL CARE ASSISTANT PROVIDERS.] 
228.9      The commissioner of health shall create a unique category 
228.10  of licensure as appropriate for providers offering, providing, 
228.11  or arranging personal care assistant services to more than one 
228.12  individual.  The commissioner shall work with the department of 
228.13  human services, providers, consumers, and advocates in 
228.14  developing the licensure standards.  The licensure standards 
228.15  must include requirements for providers to provide consumers 
228.16  advance written notice of service termination, a service 
228.17  transition plan, and an appeal process.  If the commissioner 
228.18  determines there are costs related to rulemaking under this 
228.19  section, the commissioner shall include a budget request for 
228.20  this item in the 2000-2001 biennial budget.  Prior to 
228.21  promulgating the rule, the commissioner shall submit the 
228.22  proposed rule to the legislature by January 15, 1999.  
228.23     Sec. 58.  Laws 1997, chapter 203, article 4, section 64, is 
228.24  amended to read:  
228.25     Sec. 64.  [STUDY OF ELDERLY WAIVER EXPANSION.] 
228.26     The commissioner of human services shall appoint a task 
228.27  force that includes representatives of counties, health plans, 
228.28  consumers, and legislators to study the impact of the expansion 
228.29  of the elderly waiver program under section 4 and to make 
228.30  recommendations for any changes in law necessary to facilitate 
228.31  an efficient and equitable relationship between the elderly 
228.32  waiver program and the Minnesota senior health options project.  
228.33  Based on the results of the task force study, the commissioner 
228.34  may seek any federal waivers needed to improve the relationship 
228.35  between the elderly waiver and the Minnesota senior health 
228.36  options project.  The commissioner shall report the results of 
229.1   the task force study to the legislature by January 15, 1998 July 
229.2   1, 2000. 
229.3      Sec. 59.  [OFFSET OF HMO SURCHARGE.] 
229.4      Beginning October 1, 1998, and ending December 31, 1998, 
229.5   the commissioner of human services shall offset monthly charges 
229.6   for the health maintenance organization surcharge by the monthly 
229.7   amount the health maintenance organization overpaid from August 
229.8   1, 1997, to September 30, 1998, due to taxation of Medicare 
229.9   revenues prohibited by Minnesota Statutes, section 256.9657, 
229.10  subdivision 3. 
229.11     Sec. 60.  [MR/RC WAIVER PROPOSAL.] 
229.12     By November 15, 1998, the commissioner of human services 
229.13  shall provide to the chairs of the house health and human 
229.14  services finance division and the senate health and family 
229.15  security finance division a detailed budget proposal for 
229.16  providing services under the home and community-based waiver for 
229.17  persons with mental retardation or related conditions to those 
229.18  individuals who are screened and waiting for services. 
229.19     Sec. 61.  [HIV HEALTH CARE ACCESS STUDY.] 
229.20     The commissioner of human services shall study, in 
229.21  consultation with the commissioner of health and a task force of 
229.22  affected community stakeholders, the impact of positive patient 
229.23  responses to new HIV treatment on re-entry to the workplace, 
229.24  including, but not limited to, addressing continued access to 
229.25  health care and disability benefits.  The commissioner shall 
229.26  submit a report on the study with recommendations to the 
229.27  legislature by January 15, 1999. 
229.28     Sec. 62.  [MENTAL HEALTH REPORT.] 
229.29     (a) By December 1, 1998, the commissioner of human services 
229.30  shall report to the legislature on recommendations to maximize 
229.31  federal funding for mental health services for children and 
229.32  adults.  In developing the recommendations, the commissioner 
229.33  shall seek advice from a children's and adults' mental health 
229.34  services stakeholders advisory group including representatives 
229.35  of state and county government, private and state-operated 
229.36  mental health providers, mental health consumers, family 
230.1   members, and advocates. 
230.2      (b) The report shall include a proposal developed in 
230.3   conjunction with the counties that does not shift caseload 
230.4   growth to counties after July 1, 1999, and recommendations on 
230.5   whether the state should directly participate in medical 
230.6   assistance mental health case management by funding a portion of 
230.7   the nonfederal share of Medicaid. 
230.8      Sec. 63.  [CONSUMER PRICE INDEX REPORT.] 
230.9      By January 15, 1999, and each year thereafter, the 
230.10  commissioner of human services shall report to the chair of the 
230.11  senate health and family security budget division and the chair 
230.12  of the house health and human services budget division on the 
230.13  cost of increasing the income standard under Minnesota Statutes, 
230.14  section 256B.056, subdivision 4, and the provider rates under 
230.15  Minnesota Statutes, section 256B.038, by an amount equal to the 
230.16  percent change in the Consumer Price Index for all urban 
230.17  consumers for the previous October compared to one year earlier. 
230.18     Sec. 64.  [TRANSLATING AND INTERPRETING INFORMATION FOR 
230.19  PERSONS WITH LIMITED ENGLISH-LANGUAGE PROFICIENCY.] 
230.20     (a) The commissioner shall develop a plan to serve public 
230.21  assistance applicants and recipients who have limited 
230.22  English-language proficiency that ensures that the state is in 
230.23  compliance with title VI of the Civil Rights Act and Minnesota 
230.24  Statutes, section 363.073, and any other laws or regulations 
230.25  that prohibit discrimination. 
230.26     (b) The commissioner shall convene an advisory committee 
230.27  that consists of members of bilingual community groups, county 
230.28  human service agencies, health plans, health care providers, 
230.29  advocacy groups, and other state agencies to assist in 
230.30  developing the plan. 
230.31     (c) The commissioner shall submit the plan and any fiscal 
230.32  estimates necessary to implement the plan to the chairs of the 
230.33  health and human services policy and finance divisions by 
230.34  December 15, 1998. 
230.35     (d) Until the plan under paragraph (c) is implemented, the 
230.36  commissioner is required to include a language block on notices 
231.1   from county agencies that deny, reduce, or terminate benefits 
231.2   which states: 
231.3      "IMPORTANT! This notice affects your rights and should be 
231.4      translated immediately.  If you need help translating this 
231.5      notice, call your county worker." 
231.6      Notices from MinnesotaCare that deny, reduce, or terminate 
231.7   benefits must include a language block which states: 
231.8      "IMPORTANT! This notice affects your rights and should be 
231.9      translated immediately.  If you need help translating this 
231.10     notice, call your enrollment representative." 
231.11  The notice must include a telephone number for the MinnesotaCare 
231.12  enrollment representative. 
231.13     (e) Until the plan under paragraph (c) is implemented, the 
231.14  commissioner shall require a managed care plan under contract 
231.15  with the commissioner of human services that issues a notice 
231.16  that denies, reduces, or terminates coverage to include a 
231.17  language block, which states: 
231.18     "IMPORTANT! This notice affects your rights and should be 
231.19     translated immediately."  
231.20  The notice shall include the telephone number of a person to 
231.21  contact who can assist the enrollee in translating the notice. 
231.22     Sec. 65.  [UNCOMPENSATED CARE STUDY.] 
231.23     The commissioner of health, in consultation with the 
231.24  commissioner of human services, associations representing 
231.25  Minnesota counties, consumer advocates, associations 
231.26  representing health care providers and institutions, and 
231.27  representatives of institutions providing a disproportionate 
231.28  share of uncompensated medical care shall submit to the 
231.29  legislature by January 15, 1999, a report and recommendations on 
231.30  the provision and financing of uncompensated care in Minnesota.  
231.31  The report must: 
231.32     (1) document the extent of uncompensated care provided in 
231.33  Minnesota; 
231.34     (2) discuss the feasibility of and evaluate options for 
231.35  financing uncompensated care, including but not limited to: 
231.36     (i) modifying the eligibility standards for the 
232.1   MinnesotaCare and general assistance medical care programs; and 
232.2      (ii) allowing providers to bill other counties for 
232.3   uncompensated care provided to residents of those counties; 
232.4      (3) evaluate approaches used by other states to monitor and 
232.5   finance uncompensated care; and 
232.6      (4) describe alternative approaches to encourage health 
232.7   care coverage. 
232.8      Sec. 66.  [COVERAGE OF REHABILITATIVE AND THERAPEUTIC 
232.9   SERVICES.] 
232.10     (a) The threshold limits for fee-for-service medical 
232.11  assistance rehabilitative and therapeutic services for January 
232.12  1, 1998 through June 30, 1999, shall be the limits prescribed in 
232.13  the department of human services health care programs provider 
232.14  manual for calendar year 1997.  Rehabilitative and therapeutic 
232.15  services are:  occupational therapy services provided to medical 
232.16  assistance recipients pursuant to Minnesota Statutes, section 
232.17  256B.0625, subdivision 8a; physical therapy services provided to 
232.18  medical assistance recipients pursuant to Minnesota Statutes, 
232.19  section 256B.0625, subdivision 8; and speech language pathology 
232.20  services provided to medical assistance recipients pursuant to 
232.21  Minnesota Rules, part 9505.0390. 
232.22     (b) The commissioner of human services, in consultation 
232.23  with the department of human services rehabilitative work group, 
232.24  shall report to the chair of the senate health and family 
232.25  security committee and the chair of the house health and human 
232.26  services committee by January 15, 1999, recommendations and 
232.27  proposed legislation for the appropriate level of rehabilitative 
232.28  services delivered to medical assistance recipients before prior 
232.29  authorization.  The recommendations shall also include proposed 
232.30  legislation to clarify the rehabilitative and therapeutic 
232.31  benefit set for medical assistance, as well as the appropriate 
232.32  response time for requests for prior authorization.  
232.33     Sec. 67.  [DENTAL SERVICES REIMBURSEMENT AND ACCESS STUDY.] 
232.34     (a) The commissioner of human services, in consultation 
232.35  with the commissioner of health, shall report to the legislature 
232.36  by December 15, 1998, on the costs of providing dental care 
233.1   services to recipients of the medical assistance, general 
233.2   assistance medical care and MinnesotaCare programs and the 
233.3   reimbursement level of those programs under fee-for-service and 
233.4   under managed care plans.  Costs shall include both base level 
233.5   and incremental costs of providing services to public program 
233.6   recipients.  In completing the study, the commissioner shall 
233.7   review existing dental practice literature on dental practice 
233.8   expenses, and conduct a random survey of dental practices in the 
233.9   state to establish usual and customary fees for a subset of 
233.10  common dental procedures.  The commissioner shall compare 
233.11  private insurance reimbursement for a subset of common dental 
233.12  procedures with reimbursement levels for public programs.  In 
233.13  determining private insurance reimbursement, the commissioner 
233.14  may obtain reimbursement data from health plans insuring or 
233.15  providing dental care services.  Data obtained by the 
233.16  commissioner shall be nonpublic and subject to Minnesota 
233.17  Statutes, section 62J.321.  The commissioner may include in the 
233.18  report related information on the costs of other health care 
233.19  professionals and reimbursement levels by public and private 
233.20  payers. 
233.21     (b) The commissioner of human services shall present 
233.22  recommendations to the legislature by February 1, 1999, on how 
233.23  access to dental services for medical assistance, general 
233.24  assistance medical care, and MinnesotaCare recipients can be 
233.25  expanded.  The commissioner shall also determine which areas of 
233.26  the state are experiencing a significant access problem.  In 
233.27  developing recommendations, the commissioner shall evaluate the 
233.28  feasibility of a disproportionate share adjustment for dental 
233.29  services. 
233.30     Sec. 68.  [RECYCLING PILOT PROJECT.] 
233.31     The commissioner of human services, in cooperation with the 
233.32  system of technology to achieve results (STAR) program, shall 
233.33  award a grant on a competitive basis to a qualified agency for 
233.34  the establishment of a pilot project to: 
233.35     (1) obtain, refurbish, and recycle augmentative and 
233.36  alternative communication systems in order to allow their reuse 
234.1   for trials and short-term use by persons with severe expressive 
234.2   communication limitations; and 
234.3      (2) provide training related to the use of augmentative and 
234.4   alternative communication systems. 
234.5   The commissioner shall award the grant as soon as possible after 
234.6   July 1, 1998, and shall report to the legislature by January 15, 
234.7   1999, on the activities of the grantee. 
234.8      Sec. 69.  [REPEALER.] 
234.9      Minnesota Statutes 1996, section 144.0721, subdivision 3a; 
234.10  and Minnesota Statutes 1997 Supplement, sections 144.0721, 
234.11  subdivision 3; and 256B.0913, subdivision 15, are repealed. 
234.12     Sec. 70.  [EFFECTIVE DATES.] 
234.13     (a) Sections 5, 31, 40, 45, 50, and 66 are effective the 
234.14  day following final enactment. 
234.15     (b) Sections 10 and 48 are effective January 1, 1999. 
234.16     (c) Sections 23, 25, 55, and 56 are effective July 1, 1999. 
234.17     (d) Sections 14 and 19 are effective retroactive to July 1, 
234.18  1997. 
234.19     (e) Section 7 is effective retroactive to August 1, 1997. 
234.20     (f) Sections 3 and 44 are effective 30 days following final 
234.21  enactment. 
234.22     (g) Section 32 is effective for changes in eligibility that 
234.23  occur on or after July 1, 1998. 
234.24                             ARTICLE 5 
234.25                           MINNESOTACARE 
234.26     Section 1.  Minnesota Statutes 1997 Supplement, section 
234.27  60A.15, subdivision 1, is amended to read: 
234.28     Subdivision 1.  [DOMESTIC AND FOREIGN COMPANIES.] (a) On or 
234.29  before April 1, June 1, and December 1 of each year, every 
234.30  domestic and foreign company, including town and farmers' mutual 
234.31  insurance companies, domestic mutual insurance companies, marine 
234.32  insurance companies, health maintenance organizations, community 
234.33  integrated service networks, and nonprofit health service plan 
234.34  corporations, shall pay to the commissioner of revenue 
234.35  installments equal to one-third of the insurer's total estimated 
234.36  tax for the current year.  Except as provided in paragraphs (d), 
235.1   (e), (h), and (i), installments must be based on a sum equal to 
235.2   two percent of the premiums described in paragraph (b). 
235.3      (b) Installments under paragraph (a), (d), or (e) are 
235.4   percentages of gross premiums less return premiums on all direct 
235.5   business received by the insurer in this state, or by its agents 
235.6   for it, in cash or otherwise, during such year. 
235.7      (c) Failure of a company to make payments of at least 
235.8   one-third of either (1) the total tax paid during the previous 
235.9   calendar year or (2) 80 percent of the actual tax for the 
235.10  current calendar year shall subject the company to the penalty 
235.11  and interest provided in this section, unless the total tax for 
235.12  the current tax year is $500 or less. 
235.13     (d) For health maintenance organizations, nonprofit health 
235.14  service plan corporations, and community integrated service 
235.15  networks, the installments must be based on an amount determined 
235.16  under paragraph (h) or (i). 
235.17     (e) For purposes of computing installments for town and 
235.18  farmers' mutual insurance companies and for mutual property 
235.19  casualty companies with total assets on December 31, 1989, of 
235.20  $1,600,000,000 or less, the following rates apply: 
235.21     (1) for all life insurance, two percent; 
235.22     (2) for town and farmers' mutual insurance companies and 
235.23  for mutual property and casualty companies with total assets of 
235.24  $5,000,000 or less, on all other coverages, one percent; and 
235.25     (3) for mutual property and casualty companies with total 
235.26  assets on December 31, 1989, of $1,600,000,000 or less, on all 
235.27  other coverages, 1.26 percent. 
235.28     (f) If the aggregate amount of premium tax payments under 
235.29  this section and the fire marshal tax payments under section 
235.30  299F.21 made during a calendar year is equal to or exceeds 
235.31  $120,000, all tax payments in the subsequent calendar year must 
235.32  be paid by means of a funds transfer as defined in section 
235.33  336.4A-104, paragraph (a).  The funds transfer payment date, as 
235.34  defined in section 336.4A-401, must be on or before the date the 
235.35  payment is due.  If the date the payment is due is not a funds 
235.36  transfer business day, as defined in section 336.4A-105, 
236.1   paragraph (a), clause (4), the payment date must be on or before 
236.2   the funds transfer business day next following the date the 
236.3   payment is due.  
236.4      (g) Premiums under medical assistance, general assistance 
236.5   medical care, the MinnesotaCare program, and the Minnesota 
236.6   comprehensive health insurance plan and all payments, revenues, 
236.7   and reimbursements received from the federal government for 
236.8   Medicare-related coverage as defined in section 62A.31, 
236.9   subdivision 3, paragraph (e), are not subject to tax under this 
236.10  section. 
236.11     (h) For calendar years 1998 and 1999, the installments for 
236.12  health maintenance organizations, community integrated service 
236.13  networks, and nonprofit health service plan corporations must be 
236.14  based on an amount equal to one percent of premiums described 
236.15  under paragraph (b).  Health maintenance organizations, 
236.16  community integrated service networks, and nonprofit health 
236.17  service plan corporations that have met the cost containment 
236.18  goals established under section 62J.04 in the individual and 
236.19  small employer market for calendar year 1996 are exempt from 
236.20  payment of the tax imposed under this section for premiums paid 
236.21  after March 30, 1997, and before April 1, 1998.  Health 
236.22  maintenance organizations, community integrated service 
236.23  networks, and nonprofit health service plan corporations that 
236.24  have met the cost containment goals established under section 
236.25  62J.04 in the individual and small employer market for calendar 
236.26  year 1997 are exempt from payment of the tax imposed under this 
236.27  section for premiums paid after March 30, 1998, and before April 
236.28  1, 1999.  
236.29     (i) For calendar years after 1999, the commissioner of 
236.30  finance shall determine the balance of the health care access 
236.31  fund on September 1 of each year beginning September 1, 1999.  
236.32  If the commissioner determines that there is no structural 
236.33  deficit for the next fiscal year, no tax shall be imposed under 
236.34  paragraph (d) for the following calendar year.  If the 
236.35  commissioner determines that there will be a structural deficit 
236.36  in the fund for the following fiscal year, then the 
237.1   commissioner, in consultation with the commissioner of revenue, 
237.2   shall determine the amount needed to eliminate the structural 
237.3   deficit and a tax shall be imposed under paragraph (d) for the 
237.4   following calendar year.  The commissioner shall determine the 
237.5   rate of the tax as either one-quarter of one percent, one-half 
237.6   of one percent, three-quarters of one percent, or one percent of 
237.7   premiums described in paragraph (b), whichever is the lowest of 
237.8   those rates that the commissioner determines will produce 
237.9   sufficient revenue to eliminate the projected structural 
237.10  deficit.  The commissioner of finance shall publish in the State 
237.11  Register by October 1 of each year the amount of tax to be 
237.12  imposed for the following calendar year.  In determining the 
237.13  structural balance of the health care access fund for fiscal 
237.14  years 2000 and 2001, the commissioner shall disregard the 
237.15  transfer amount from the health care access fund to the general 
237.16  fund for expenditures associated with the services provided to 
237.17  pregnant women and children under the age of two enrolled in the 
237.18  MinnesotaCare program.  
237.19     (j) In approving the premium rates as required in sections 
237.20  62L.08, subdivision 8, and 62A.65, subdivision 3, the 
237.21  commissioners of health and commerce shall ensure that any 
237.22  exemption from the tax as described in paragraphs (h) and (i) is 
237.23  reflected in the premium rate. 
237.24     Sec. 2.  Minnesota Statutes 1997 Supplement, section 
237.25  256B.04, subdivision 18, is amended to read: 
237.26     Subd. 18.  [APPLICATIONS FOR MEDICAL ASSISTANCE.] The state 
237.27  agency may take applications for medical assistance and conduct 
237.28  eligibility determinations for MinnesotaCare enrollees who are 
237.29  required to apply for medical assistance according to section 
237.30  256L.03, subdivision 3, paragraph (b). 
237.31     Sec. 3.  Minnesota Statutes 1996, section 256B.057, is 
237.32  amended by adding a subdivision to read: 
237.33     Subd. 1c.  [NO ASSET TEST FOR PREGNANT WOMEN.] Beginning 
237.34  September 30, 1998, eligibility for medical assistance for a 
237.35  pregnant woman must be determined without regard to asset 
237.36  standards established in section 256B.056, subdivision 3.  
238.1      Sec. 4.  Minnesota Statutes 1996, section 256B.057, is 
238.2   amended by adding a subdivision to read: 
238.3      Subd. 7.  [WAIVER OF MAINTENANCE OF EFFORT 
238.4   REQUIREMENT.] Unless a federal waiver of the maintenance of 
238.5   effort requirement of section 2105(d) of title XXI of the 
238.6   Balanced Budget Act of 1997, Public Law Number 105-33, Statutes 
238.7   at Large, volume 111, page 251, is granted by the federal 
238.8   Department of Health and Human Services by September 30, 1998, 
238.9   eligibility for children under age 21 must be determined without 
238.10  regard to asset standards established in section 256B.056, 
238.11  subdivision 3.  The commissioner of human services shall publish 
238.12  a notice in the State Register upon receipt of a federal waiver. 
238.13     Sec. 5.  Minnesota Statutes 1996, section 256B.057, is 
238.14  amended by adding a subdivision to read: 
238.15     Subd. 8.  [CHILDREN UNDER AGE TWO.] Medical assistance may 
238.16  be paid for a child under two years of age whose countable 
238.17  family income is above 275 percent of the federal poverty 
238.18  guidelines for the same size family but less than or equal to 
238.19  280 percent of the federal poverty guidelines for the same size 
238.20  family. 
238.21     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
238.22  256D.03, subdivision 3, is amended to read: 
238.23     Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
238.24  (a) General assistance medical care may be paid for any person 
238.25  who is not eligible for medical assistance under chapter 256B, 
238.26  including eligibility for medical assistance based on a 
238.27  spenddown of excess income according to section 256B.056, 
238.28  subdivision 5, or MinnesotaCare as defined in clause 
238.29  (4) paragraph (b), except as provided in paragraph (b) (c); and: 
238.30     (1) who is receiving assistance under section 256D.05, 
238.31  except for families with children who are eligible under 
238.32  Minnesota family investment program-statewide (MFIP-S), who is 
238.33  having a payment made on the person's behalf under sections 
238.34  256I.01 to 256I.06, or who resides in group residential housing 
238.35  as defined in chapter 256I and can meet a spenddown using the 
238.36  cost of remedial services received through group residential 
239.1   housing; or 
239.2      (2)(i) who is a resident of Minnesota; and whose equity in 
239.3   assets is not in excess of $1,000 per assistance unit.  Exempt 
239.4   assets, the reduction of excess assets, and the waiver of excess 
239.5   assets must conform to the medical assistance program in chapter 
239.6   256B, with the following exception:  the maximum amount of 
239.7   undistributed funds in a trust that could be distributed to or 
239.8   on behalf of the beneficiary by the trustee, assuming the full 
239.9   exercise of the trustee's discretion under the terms of the 
239.10  trust, must be applied toward the asset maximum; and 
239.11     (ii) who has countable income not in excess of the 
239.12  assistance standards established in section 256B.056, 
239.13  subdivision 4, or whose excess income is spent down according to 
239.14  section 256B.056, subdivision 5, using a six-month budget 
239.15  period.  The method for calculating earned income disregards and 
239.16  deductions for a person who resides with a dependent child under 
239.17  age 21 shall follow section 256B.056, subdivision 1a.  However, 
239.18  if a disregard of $30 and one-third of the remainder has been 
239.19  applied to the wage earner's income, the disregard shall not be 
239.20  applied again until the wage earner's income has not been 
239.21  considered in an eligibility determination for general 
239.22  assistance, general assistance medical care, medical assistance, 
239.23  or MFIP-S for 12 consecutive months.  The earned income and work 
239.24  expense deductions for a person who does not reside with a 
239.25  dependent child under age 21 shall be the same as the method 
239.26  used to determine eligibility for a person under section 
239.27  256D.06, subdivision 1, except the disregard of the first $50 of 
239.28  earned income is not allowed; or 
239.29     (3) who would be eligible for medical assistance except 
239.30  that the person resides in a facility that is determined by the 
239.31  commissioner or the federal Health Care Financing Administration 
239.32  to be an institution for mental diseases.; or 
239.33     (4) who is ineligible for medical assistance under chapter 
239.34  256B or general assistance medical care under any other 
239.35  provision of this section, and is receiving care and 
239.36  rehabilitation services from a nonprofit center established to 
240.1   serve victims of torture.  These individuals are eligible for 
240.2   general assistance medical care only for the period during which 
240.3   they are receiving services from the center.  During this period 
240.4   of eligibility, individuals eligible under this clause shall not 
240.5   be required to participate in prepaid general assistance medical 
240.6   care.  
240.7      (4) (b) Beginning July 1, 1998 January 1, 2000, applicants 
240.8   or recipients who meet all eligibility requirements of 
240.9   MinnesotaCare as defined in sections 256L.01 to 256L.16, and are:
240.10     (i) adults with dependent children under 21 whose gross 
240.11  family income is equal to or less than 275 percent of the 
240.12  federal poverty guidelines; or 
240.13     (ii) adults without children with earned income and whose 
240.14  family gross income is between 75 percent of the federal poverty 
240.15  guidelines and the amount set by section 256L.04, subdivision 7, 
240.16  shall be terminated from general assistance medical care upon 
240.17  enrollment in MinnesotaCare. 
240.18     (b) (c) For services rendered on or after July 1, 1997, 
240.19  eligibility is limited to one month prior to application if the 
240.20  person is determined eligible in the prior month.  A 
240.21  redetermination of eligibility must occur every 12 months.  
240.22  Beginning July 1, 1998 January 1, 2000, Minnesota health care 
240.23  program applications completed by recipients and applicants who 
240.24  are persons described in paragraph (a) (b), clause (4), may be 
240.25  returned to the county agency to be forwarded to the department 
240.26  of human services or sent directly to the department of human 
240.27  services for enrollment in MinnesotaCare.  If all other 
240.28  eligibility requirements of this subdivision are met, 
240.29  eligibility for general assistance medical care shall be 
240.30  available in any month during which a MinnesotaCare eligibility 
240.31  determination and enrollment are pending.  Upon notification of 
240.32  eligibility for MinnesotaCare, notice of termination for 
240.33  eligibility for general assistance medical care shall be sent to 
240.34  an applicant or recipient.  If all other eligibility 
240.35  requirements of this subdivision are met, eligibility for 
240.36  general assistance medical care shall be available until 
241.1   enrollment in MinnesotaCare subject to the provisions of 
241.2   paragraph (d) (e). 
241.3      (c) (d) The date of an initial Minnesota health care 
241.4   program application necessary to begin a determination of 
241.5   eligibility shall be the date the applicant has provided a name, 
241.6   address, and social security number, signed and dated, to the 
241.7   county agency or the department of human services.  If the 
241.8   applicant is unable to provide an initial application when 
241.9   health care is delivered due to a medical condition or 
241.10  disability, a health care provider may act on the person's 
241.11  behalf to complete the initial application.  The applicant must 
241.12  complete the remainder of the application and provide necessary 
241.13  verification before eligibility can be determined.  The county 
241.14  agency must assist the applicant in obtaining verification if 
241.15  necessary. 
241.16     (d) (e) County agencies are authorized to use all automated 
241.17  databases containing information regarding recipients' or 
241.18  applicants' income in order to determine eligibility for general 
241.19  assistance medical care or MinnesotaCare.  Such use shall be 
241.20  considered sufficient in order to determine eligibility and 
241.21  premium payments by the county agency. 
241.22     (e) (f) General assistance medical care is not available 
241.23  for a person in a correctional facility unless the person is 
241.24  detained by law for less than one year in a county correctional 
241.25  or detention facility as a person accused or convicted of a 
241.26  crime, or admitted as an inpatient to a hospital on a criminal 
241.27  hold order, and the person is a recipient of general assistance 
241.28  medical care at the time the person is detained by law or 
241.29  admitted on a criminal hold order and as long as the person 
241.30  continues to meet other eligibility requirements of this 
241.31  subdivision.  
241.32     (f) (g) General assistance medical care is not available 
241.33  for applicants or recipients who do not cooperate with the 
241.34  county agency to meet the requirements of medical assistance.  
241.35  General assistance medical care is limited to payment of 
241.36  emergency services only for applicants or recipients as 
242.1   described in paragraph (a) (b), clause (4), whose MinnesotaCare 
242.2   coverage is denied or terminated for nonpayment of premiums as 
242.3   required by sections 256L.06 to 256L.08 and 256L.07.  
242.4      (g) (h) In determining the amount of assets of an 
242.5   individual, there shall be included any asset or interest in an 
242.6   asset, including an asset excluded under paragraph (a), that was 
242.7   given away, sold, or disposed of for less than fair market value 
242.8   within the 60 months preceding application for general 
242.9   assistance medical care or during the period of eligibility.  
242.10  Any transfer described in this paragraph shall be presumed to 
242.11  have been for the purpose of establishing eligibility for 
242.12  general assistance medical care, unless the individual furnishes 
242.13  convincing evidence to establish that the transaction was 
242.14  exclusively for another purpose.  For purposes of this 
242.15  paragraph, the value of the asset or interest shall be the fair 
242.16  market value at the time it was given away, sold, or disposed 
242.17  of, less the amount of compensation received.  For any 
242.18  uncompensated transfer, the number of months of ineligibility, 
242.19  including partial months, shall be calculated by dividing the 
242.20  uncompensated transfer amount by the average monthly per person 
242.21  payment made by the medical assistance program to skilled 
242.22  nursing facilities for the previous calendar year.  The 
242.23  individual shall remain ineligible until this fixed period has 
242.24  expired.  The period of ineligibility may exceed 30 months, and 
242.25  a reapplication for benefits after 30 months from the date of 
242.26  the transfer shall not result in eligibility unless and until 
242.27  the period of ineligibility has expired.  The period of 
242.28  ineligibility begins in the month the transfer was reported to 
242.29  the county agency, or if the transfer was not reported, the 
242.30  month in which the county agency discovered the transfer, 
242.31  whichever comes first.  For applicants, the period of 
242.32  ineligibility begins on the date of the first approved 
242.33  application. 
242.34     (h) (i) When determining eligibility for any state benefits 
242.35  under this subdivision, the income and resources of all 
242.36  noncitizens shall be deemed to include their sponsor's income 
243.1   and resources as defined in the Personal Responsibility and Work 
243.2   Opportunity Reconciliation Act of 1996, title IV, Public Law 
243.3   Number 104-193, sections 421 and 422, and subsequently set out 
243.4   in federal rules. 
243.5      (i) (j)(1) An undocumented noncitizen or a nonimmigrant is 
243.6   ineligible for general assistance medical care other than 
243.7   emergency services.  For purposes of this subdivision, a 
243.8   nonimmigrant is an individual in one or more of the classes 
243.9   listed in United States Code, title 8, section 1101(a)(15), and 
243.10  an undocumented noncitizen is an individual who resides in the 
243.11  United States without the approval or acquiescence of the 
243.12  Immigration and Naturalization Service. 
243.13     (j) (2) This paragraph does not apply to a child under age 
243.14  18, to a Cuban or Haitian entrant as defined in Public Law 
243.15  Number 96-422, section 501(e)(1) or (2)(a), or to a noncitizen 
243.16  who is aged, blind, or disabled as defined in Code of Federal 
243.17  Regulations, title 42, sections 435.520, 435.530, 435.531, 
243.18  435.540, and 435.541, or effective October 1, 1998, to an 
243.19  individual eligible for general assistance medical care under 
243.20  paragraph (a), clause (4), who cooperates with the Immigration 
243.21  and Naturalization Service to pursue any applicable immigration 
243.22  status, including citizenship, that would qualify the individual 
243.23  for medical assistance with federal financial participation. 
243.24     (k) (3) For purposes of paragraphs (f) and (i) this 
243.25  paragraph, "emergency services" has the meaning given in Code of 
243.26  Federal Regulations, title 42, section 440.255(b)(1), except 
243.27  that it also means services rendered because of suspected or 
243.28  actual pesticide poisoning. 
243.29     (l) (k) Notwithstanding any other provision of law, a 
243.30  noncitizen who is ineligible for medical assistance due to the 
243.31  deeming of a sponsor's income and resources, is ineligible for 
243.32  general assistance medical care. 
243.33     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
243.34  256L.01, is amended to read: 
243.35     256L.01 [DEFINITIONS.] 
243.36     Subdivision 1.  [SCOPE.] For purposes of sections 256L.01 
244.1   to 256L.10 256L.18, the following terms shall have the meanings 
244.2   given them. 
244.3      Subd. 1a.  [CHILD.] "Child" means an individual under 21 
244.4   years of age, including the unborn child of a pregnant woman, an 
244.5   emancipated minor, and an emancipated minor's spouse. 
244.6      Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
244.7   commissioner of human services. 
244.8      Subd. 3.  [ELIGIBLE PROVIDERS.] "Eligible providers" means 
244.9   those health care providers who provide covered health services 
244.10  to medical assistance recipients under rules established by the 
244.11  commissioner for that program.  
244.12     Subd. 3a.  [FAMILY WITH CHILDREN.] (a) "Family with 
244.13  children" means: 
244.14     (1) parents, their children, and dependent siblings 
244.15  residing in the same household; or 
244.16     (2) grandparents, foster parents, relative caretakers as 
244.17  defined in the medical assistance program, or legal guardians; 
244.18  their wards who are children; and dependent siblings residing in 
244.19  the same household.  
244.20     (b) The term includes children and dependent siblings who 
244.21  are temporarily absent from the household in settings such as 
244.22  schools, camps, or visitation with noncustodial parents.  
244.23     (c) For purposes of this subdivision, a dependent sibling 
244.24  means an unmarried child who is a full-time student under the 
244.25  age of 25 years who is financially dependent upon a parent, 
244.26  grandparent, foster parent, relative caretaker, or legal 
244.27  guardian.  Proof of school enrollment is required. 
244.28     Subd. 4.  [GROSS INDIVIDUAL OR GROSS FAMILY INCOME.] "Gross 
244.29  individual or gross family income" for farm and nonfarm 
244.30  self-employed means income calculated using as the baseline the 
244.31  adjusted gross income reported on the applicant's federal income 
244.32  tax form for the previous year and adding back in reported 
244.33  depreciation, carryover loss, and net operating loss amounts 
244.34  that apply to the business in which the family is currently 
244.35  engaged.  Applicants shall report the most recent financial 
244.36  situation of the family if it has changed from the period of 
245.1   time covered by the federal income tax form.  The report may be 
245.2   in the form of percentage increase or decrease. 
245.3      Subd. 5.  [INCOME.] "Income" has the meaning given for 
245.4   earned and unearned income for families and children in the 
245.5   medical assistance program, according to the state's aid to 
245.6   families with dependent children plan in effect as of July 16, 
245.7   1996.  The definition does not include medical assistance income 
245.8   methodologies and deeming requirements.  The earned income of 
245.9   full-time and part-time students under age 19 is not counted as 
245.10  income.  Public assistance payments and supplemental security 
245.11  income are not excluded income. 
245.12     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
245.13  256L.02, subdivision 3, is amended to read: 
245.14     Subd. 3.  [FINANCIAL MANAGEMENT.] (a) The commissioner 
245.15  shall manage spending for the MinnesotaCare program in a manner 
245.16  that maintains a minimum reserve in accordance with section 
245.17  16A.76.  As part of each state revenue and expenditure forecast, 
245.18  the commissioner must make a quarterly an assessment of the 
245.19  expected expenditures for the covered services for the remainder 
245.20  of the current biennium and for the following biennium.  The 
245.21  estimated expenditure, including the reserve requirements 
245.22  described in section 16A.76, shall be compared to an estimate of 
245.23  the revenues that will be deposited available in the health care 
245.24  access fund.  Based on this comparison, and after consulting 
245.25  with the chairs of the house ways and means committee and the 
245.26  senate finance committee, and the legislative commission on 
245.27  health care access, the commissioner shall, as necessary, make 
245.28  the adjustments specified in paragraph (b) to ensure that 
245.29  expenditures remain within the limits of available revenues for 
245.30  the remainder of the current biennium and for the following 
245.31  biennium.  The commissioner shall not hire additional staff 
245.32  using appropriations from the health care access fund until the 
245.33  commissioner of finance makes a determination that the 
245.34  adjustments implemented under paragraph (b) are sufficient to 
245.35  allow MinnesotaCare expenditures to remain within the limits of 
245.36  available revenues for the remainder of the current biennium and 
246.1   for the following biennium. 
246.2      (b) The adjustments the commissioner shall use must be 
246.3   implemented in this order:  first, stop enrollment of single 
246.4   adults and households without children; second, upon 45 days' 
246.5   notice, stop coverage of single adults and households without 
246.6   children already enrolled in the MinnesotaCare program; third, 
246.7   upon 90 days' notice, decrease the premium subsidy amounts by 
246.8   ten percent for families with gross annual income above 200 
246.9   percent of the federal poverty guidelines; fourth, upon 90 days' 
246.10  notice, decrease the premium subsidy amounts by ten percent for 
246.11  families with gross annual income at or below 200 percent; and 
246.12  fifth, require applicants to be uninsured for at least six 
246.13  months prior to eligibility in the MinnesotaCare program.  If 
246.14  these measures are insufficient to limit the expenditures to the 
246.15  estimated amount of revenue, the commissioner shall further 
246.16  limit enrollment or decrease premium subsidies. 
246.17     Sec. 9.  Minnesota Statutes 1997 Supplement, section 
246.18  256L.02, is amended by adding a subdivision to read: 
246.19     Subd. 4.  [FUNDING FOR PREGNANT WOMEN AND CHILDREN UNDER 
246.20  AGE TWO.] For fiscal years beginning on or after July 1, 1999, 
246.21  the state cost of health care services provided to MinnesotaCare 
246.22  enrollees who are pregnant women or children under age two shall 
246.23  be paid out of the general fund rather than the health care 
246.24  access fund.  If the commissioner of finance decides to pay for 
246.25  these costs using a source other than the general fund, the 
246.26  commissioner shall include the change as a budget initiative in 
246.27  the biennial or supplemental budget, and shall not change the 
246.28  funding source through a forecast modification. 
246.29     Sec. 10.  Minnesota Statutes 1997 Supplement, section 
246.30  256L.03, subdivision 1, is amended to read: 
246.31     Subdivision 1.  [COVERED HEALTH SERVICES.] "Covered health 
246.32  services" means the health services reimbursed under chapter 
246.33  256B, with the exception of inpatient hospital services, special 
246.34  education services, private duty nursing services, adult dental 
246.35  care services other than preventive services, orthodontic 
246.36  services, nonemergency medical transportation services, personal 
247.1   care assistant and case management services, nursing home or 
247.2   intermediate care facilities services, inpatient mental health 
247.3   services, and chemical dependency services.  Effective July 1, 
247.4   1998, adult dental care for nonpreventive services with the 
247.5   exception of orthodontic services is available to persons who 
247.6   qualify under section 256L.04, subdivisions 1 to 7, or 256L.13, 
247.7   with family gross income equal to or less than 175 percent of 
247.8   the federal poverty guidelines.  Outpatient mental health 
247.9   services covered under the MinnesotaCare program are limited to 
247.10  diagnostic assessments, psychological testing, explanation of 
247.11  findings, medication management by a physician, day treatment, 
247.12  partial hospitalization, and individual, family, and group 
247.13  psychotherapy. 
247.14     No public funds shall be used for coverage of abortion 
247.15  under MinnesotaCare except where the life of the female would be 
247.16  endangered or substantial and irreversible impairment of a major 
247.17  bodily function would result if the fetus were carried to term; 
247.18  or where the pregnancy is the result of rape or incest. 
247.19     Covered health services shall be expanded as provided in 
247.20  this section. 
247.21     Sec. 11.  Minnesota Statutes 1997 Supplement, section 
247.22  256L.03, is amended by adding a subdivision to read: 
247.23     Subd. 1a.  [COVERED SERVICES FOR PREGNANT WOMEN AND 
247.24  CHILDREN UNDER MINNESOTACARE HEALTH CARE REFORM WAIVER.] 
247.25  Beginning January 1, 1999, children and pregnant women are 
247.26  eligible for coverage of all services that are eligible for 
247.27  reimbursement under the medical assistance program according to 
247.28  chapter 256B, except that abortion services under MinnesotaCare 
247.29  shall be limited as provided under section 256L.03, subdivision 
247.30  1.  Pregnant women and children are exempt from the provisions 
247.31  of subdivision 5, regarding copayments.  Pregnant women and 
247.32  children who are lawfully residing in the United States but who 
247.33  are not "qualified noncitizens" under title IV of the Personal 
247.34  Responsibility and Work Opportunity Reconciliation Act of 1996, 
247.35  Public Law Number 104-193, Statutes at Large, volume 110, page 
247.36  2105, are eligible for coverage of all services provided under 
248.1   the medical assistance program according to chapter 256B. 
248.2      Sec. 12.  Minnesota Statutes 1997 Supplement, section 
248.3   256L.03, is amended by adding a subdivision to read: 
248.4      Subd. 1b.  [PREGNANT WOMEN; ELIGIBILITY FOR FULL MEDICAL 
248.5   ASSISTANCE SERVICES.] Beginning January 1, 1999, a woman who is 
248.6   enrolled in MinnesotaCare when her pregnancy is diagnosed is 
248.7   eligible for coverage of all services provided under the medical 
248.8   assistance program according to chapter 256B retroactive to the 
248.9   date the pregnancy is medically diagnosed.  Copayments totaling 
248.10  $30 or more, paid after the date the pregnancy is diagnosed, 
248.11  shall be refunded. 
248.12     Sec. 13.  Minnesota Statutes 1997 Supplement, section 
248.13  256L.03, subdivision 3, is amended to read: 
248.14     Subd. 3.  [INPATIENT HOSPITAL SERVICES.] (a) Beginning July 
248.15  1, 1993, Covered health services shall include inpatient 
248.16  hospital services, including inpatient hospital mental health 
248.17  services and inpatient hospital and residential chemical 
248.18  dependency treatment, subject to those limitations necessary to 
248.19  coordinate the provision of these services with eligibility 
248.20  under the medical assistance spenddown.  Prior to July 1, 1997, 
248.21  the inpatient hospital benefit for adult enrollees is subject to 
248.22  an annual benefit limit of $10,000.  Effective July 1, 1997, The 
248.23  inpatient hospital benefit for adult enrollees who qualify under 
248.24  section 256L.04, subdivision 7, or who qualify under section 
248.25  256L.04, subdivisions 1 to 6 and 2, or 256L.13 with family gross 
248.26  income that exceeds 175 percent of the federal poverty 
248.27  guidelines and who are not pregnant, is subject to an annual 
248.28  limit of $10,000.  
248.29     (b) Enrollees who qualify under section 256L.04, 
248.30  subdivision 7, or who qualify under section 256L.04, 
248.31  subdivisions 1 to 6, or 256L.13 with family gross income that 
248.32  exceeds 175 percent of the federal poverty guidelines and who 
248.33  are not pregnant, and are determined by the commissioner to have 
248.34  a basis of eligibility for medical assistance shall apply for 
248.35  and cooperate with the requirements of medical assistance by the 
248.36  last day of the third month following admission to an inpatient 
249.1   hospital.  If an enrollee fails to apply for medical assistance 
249.2   within this time period, the enrollee and the enrollee's family 
249.3   shall be disenrolled from the plan and they may not reenroll 
249.4   until 12 calendar months have elapsed.  Enrollees and enrollees' 
249.5   families disenrolled for not applying for or not cooperating 
249.6   with medical assistance may not reenroll. 
249.7      (c) Admissions for inpatient hospital services paid for 
249.8   under section 256L.11, subdivision 3, must be certified as 
249.9   medically necessary in accordance with Minnesota Rules, parts 
249.10  9505.0500 to 9505.0540, except as provided in clauses (1) and 
249.11  (2): 
249.12     (1) all admissions must be certified, except those 
249.13  authorized under rules established under section 254A.03, 
249.14  subdivision 3, or approved under Medicare; and 
249.15     (2) payment under section 256L.11, subdivision 3, shall be 
249.16  reduced by five percent for admissions for which certification 
249.17  is requested more than 30 days after the day of admission.  The 
249.18  hospital may not seek payment from the enrollee for the amount 
249.19  of the payment reduction under this clause. 
249.20     (d) Any enrollee or family member of an enrollee who has 
249.21  previously been permanently disenrolled from MinnesotaCare for 
249.22  not applying for and cooperating with medical assistance shall 
249.23  be eligible to reenroll if 12 calendar months have elapsed since 
249.24  the date of disenrollment. 
249.25     Sec. 14.  Minnesota Statutes 1997 Supplement, section 
249.26  256L.03, is amended by adding a subdivision to read: 
249.27     Subd. 3a.  [INTERPRETER SERVICES.] Covered services include 
249.28  sign and spoken language interpreter services that assist an 
249.29  enrollee in obtaining covered health care services. 
249.30     Sec. 15.  Minnesota Statutes 1997 Supplement, section 
249.31  256L.03, subdivision 4, is amended to read: 
249.32     Subd. 4.  [COORDINATION WITH MEDICAL ASSISTANCE.] The 
249.33  commissioner shall coordinate the provision of hospital 
249.34  inpatient services under the MinnesotaCare program with enrollee 
249.35  eligibility under the medical assistance spenddown, and shall 
249.36  apply to the secretary of health and human services for any 
250.1   necessary federal waivers or approvals. 
250.2      Sec. 16.  Minnesota Statutes 1997 Supplement, section 
250.3   256L.03, subdivision 5, is amended to read: 
250.4      Subd. 5.  [COPAYMENTS AND COINSURANCE.] The MinnesotaCare 
250.5   benefit plan shall include the following copayments and 
250.6   coinsurance requirements:  
250.7      (1) ten percent of the paid charges for inpatient hospital 
250.8   services for adult enrollees not eligible for medical 
250.9   assistance, subject to an annual inpatient out-of-pocket maximum 
250.10  of $1,000 per individual and $3,000 per family; 
250.11     (2) $3 per prescription for adult enrollees; 
250.12     (3) $25 for eyeglasses for adult enrollees; and 
250.13     (4) effective July 1, 1998, 50 percent of the 
250.14  fee-for-service rate for adult dental care services other than 
250.15  preventive care services for persons eligible under section 
250.16  256L.04, subdivisions 1 to 7, or 256L.13, with income equal to 
250.17  or less than 175 percent of the federal poverty guidelines. 
250.18     Prior to July 1, 1997, enrollees who are not eligible for 
250.19  medical assistance with or without a spenddown shall be 
250.20  financially responsible for the coinsurance amount and amounts 
250.21  which exceed the $10,000 benefit limit.  Effective July 1, 1997, 
250.22  adult enrollees who qualify under section 256L.04, subdivision 
250.23  7, or who qualify under section 256L.04, subdivisions 1 to 6, or 
250.24  256L.13 with family gross income that exceeds 175 percent of the 
250.25  federal poverty guidelines and who are not pregnant, and who are 
250.26  not eligible for medical assistance with or without a spenddown, 
250.27  shall be financially responsible for the coinsurance amount and 
250.28  amounts which exceed the $10,000 inpatient hospital benefit 
250.29  limit. 
250.30     When a MinnesotaCare enrollee becomes a member of a prepaid 
250.31  health plan, or changes from one prepaid health plan to another 
250.32  during a calendar year, any charges submitted towards the 
250.33  $10,000 annual inpatient benefit limit, and any out-of-pocket 
250.34  expenses incurred by the enrollee for inpatient services, that 
250.35  were submitted or incurred prior to enrollment, or prior to the 
250.36  change in health plans, shall be disregarded. 
251.1      Sec. 17.  Minnesota Statutes 1997 Supplement, section 
251.2   256L.04, subdivision 1, is amended to read: 
251.3      Subdivision 1.  [CHILDREN; EXPANSION AND CONTINUATION OF 
251.4   ELIGIBILITY FAMILIES WITH CHILDREN.] (a) [CHILDREN.] Prior to 
251.5   October 1, 1992, "eligible persons" means children who are one 
251.6   year of age or older but less than 18 years of age who have 
251.7   gross family incomes that are equal to or less than 185 percent 
251.8   of the federal poverty guidelines and who are not eligible for 
251.9   medical assistance without a spenddown under chapter 256B and 
251.10  who are not otherwise insured for the covered services.  The 
251.11  period of eligibility extends from the first day of the month in 
251.12  which the child's first birthday occurs to the last day of the 
251.13  month in which the child becomes 18 years old.  Families with 
251.14  children with family income equal to or less than 275 percent of 
251.15  the federal poverty guidelines for the applicable family size 
251.16  shall be eligible for MinnesotaCare according to this section.  
251.17  All other provisions of sections 256L.01 to 256L.18, including 
251.18  the insurance-related barriers to enrollment under section 
251.19  256L.07, shall apply unless otherwise specified. 
251.20     (b) [EXPANSION OF ELIGIBILITY.] Eligibility for 
251.21  MinnesotaCare shall be expanded as provided in subdivisions 3 to 
251.22  7, except children who meet the criteria in this subdivision 
251.23  shall continue to be enrolled pursuant to this subdivision.  The 
251.24  enrollment requirements in this paragraph apply to enrollment 
251.25  under subdivisions 1 to 7.  Parents who enroll in the 
251.26  MinnesotaCare program must also enroll their children and 
251.27  dependent siblings, if the children and their dependent siblings 
251.28  are eligible.  Children and dependent siblings may be enrolled 
251.29  separately without enrollment by parents.  However, if one 
251.30  parent in the household enrolls, both parents must enroll, 
251.31  unless other insurance is available.  If one child from a family 
251.32  is enrolled, all children must be enrolled, unless other 
251.33  insurance is available.  If one spouse in a household enrolls, 
251.34  the other spouse in the household must also enroll, unless other 
251.35  insurance is available.  Families cannot choose to enroll only 
251.36  certain uninsured members.  For purposes of this section, a 
252.1   "dependent sibling" means an unmarried child who is a full-time 
252.2   student under the age of 25 years who is financially dependent 
252.3   upon a parent.  Proof of school enrollment will be required.  
252.4      (c)  [CONTINUATION OF ELIGIBILITY.] Individuals who 
252.5   initially enroll in the MinnesotaCare program under the 
252.6   eligibility criteria in subdivisions 3 to 7 remain eligible for 
252.7   the MinnesotaCare program, regardless of age, place of 
252.8   residence, or the presence or absence of children in the same 
252.9   household, as long as all other eligibility criteria are met and 
252.10  residence in Minnesota and continuous enrollment in the 
252.11  MinnesotaCare program or medical assistance are maintained.  In 
252.12  order for either parent or either spouse in a household to 
252.13  remain enrolled, both must remain enrolled, unless other 
252.14  insurance is available. 
252.15     Sec. 18.  Minnesota Statutes 1997 Supplement, section 
252.16  256L.04, subdivision 2, is amended to read: 
252.17     Subd. 2.  [COOPERATION IN ESTABLISHING THIRD PARTY 
252.18  LIABILITY, PATERNITY, AND OTHER MEDICAL SUPPORT.] (a) To be 
252.19  eligible for MinnesotaCare, individuals and families must 
252.20  cooperate with the state agency to identify potentially liable 
252.21  third party payers and assist the state in obtaining third party 
252.22  payments.  "Cooperation" includes, but is not limited to, 
252.23  identifying any third party who may be liable for care and 
252.24  services provided under MinnesotaCare to the enrollee, providing 
252.25  relevant information to assist the state in pursuing a 
252.26  potentially liable third party, and completing forms necessary 
252.27  to recover third party payments. 
252.28     (b) A parent, guardian, or child enrolled in the 
252.29  MinnesotaCare program must cooperate with the department of 
252.30  human services and the local agency in establishing the 
252.31  paternity of an enrolled child and in obtaining medical care 
252.32  support and payments for the child and any other person for whom 
252.33  the person can legally assign rights, in accordance with 
252.34  applicable laws and rules governing the medical assistance 
252.35  program.  A child shall not be ineligible for or disenrolled 
252.36  from the MinnesotaCare program solely because the child's parent 
253.1   or guardian fails to cooperate in establishing paternity or 
253.2   obtaining medical support. 
253.3      Sec. 19.  Minnesota Statutes 1997 Supplement, section 
253.4   256L.04, subdivision 7, is amended to read: 
253.5      Subd. 7.  [ADDITION OF SINGLE ADULTS AND HOUSEHOLDS WITH NO 
253.6   CHILDREN.] (a) Beginning October 1, 1994, the definition of 
253.7   "eligible persons" is expanded to include all individuals and 
253.8   households with no children who have gross family incomes that 
253.9   are equal to or less than 125 percent of the federal poverty 
253.10  guidelines and who are not eligible for medical assistance 
253.11  without a spenddown under chapter 256B.  
253.12     (b) Beginning July 1, 1997, The definition of eligible 
253.13  persons is expanded to include includes all individuals and 
253.14  households with no children who have gross family incomes that 
253.15  are equal to or less than 175 percent of the federal poverty 
253.16  guidelines and who are not eligible for medical assistance 
253.17  without a spenddown under chapter 256B. 
253.18     (c) All eligible persons under paragraphs (a) and (b) are 
253.19  eligible for coverage through the MinnesotaCare program but must 
253.20  pay a premium as determined under sections 256L.07 and 256L.08.  
253.21  Individuals and families whose income is greater than the limits 
253.22  established under section 256L.08 may not enroll in the 
253.23  MinnesotaCare program. 
253.24     Sec. 20.  Minnesota Statutes 1997 Supplement, section 
253.25  256L.04, is amended by adding a subdivision to read: 
253.26     Subd. 7a.  [INELIGIBILITY.] Applicants whose income is 
253.27  greater than the limits established under this section may not 
253.28  enroll in the MinnesotaCare program. 
253.29     Sec. 21.  Minnesota Statutes 1997 Supplement, section 
253.30  256L.04, subdivision 8, is amended to read: 
253.31     Subd. 8.  [APPLICANTS POTENTIALLY ELIGIBLE FOR MEDICAL 
253.32  ASSISTANCE.] (a) Individuals who apply for MinnesotaCare receive 
253.33  supplemental security income or retirement, survivors, or 
253.34  disability benefits due to a disability, or other 
253.35  disability-based pension, who qualify under section 256L.04, 
253.36  subdivision 7, but who are potentially eligible for medical 
254.1   assistance without a spenddown shall be allowed to enroll in 
254.2   MinnesotaCare for a period of 60 days, so long as the applicant 
254.3   meets all other conditions of eligibility.  The commissioner 
254.4   shall identify and refer the applications of such individuals to 
254.5   their county social service agency.  The county and the 
254.6   commissioner shall cooperate to ensure that the individuals 
254.7   obtain medical assistance coverage for any months for which they 
254.8   are eligible. 
254.9      (b) The enrollee must cooperate with the county social 
254.10  service agency in determining medical assistance eligibility 
254.11  within the 60-day enrollment period.  Enrollees who do not apply 
254.12  for and cooperate with medical assistance within the 60-day 
254.13  enrollment period, and their other family members, shall be 
254.14  disenrolled from the plan within one calendar month.  Persons 
254.15  disenrolled for nonapplication for medical assistance may not 
254.16  reenroll until they have obtained a medical assistance 
254.17  eligibility determination for the family member or members who 
254.18  were referred to the county agency.  Persons disenrolled for 
254.19  noncooperation with medical assistance may not reenroll until 
254.20  they have cooperated with the county agency and have obtained a 
254.21  medical assistance eligibility determination. 
254.22     (c) Beginning January 1, 2000, counties that choose to 
254.23  become MinnesotaCare enrollment sites shall consider 
254.24  MinnesotaCare applications of individuals described in paragraph 
254.25  (a) to also be applications for medical assistance and shall 
254.26  first determine whether medical assistance eligibility exists.  
254.27  Adults with children with family income under 175 percent of the 
254.28  federal poverty guidelines for the applicable family size, 
254.29  pregnant women, and children who qualify under subdivision 1 who 
254.30  are potentially eligible for medical assistance without a 
254.31  spenddown may choose to enroll in either MinnesotaCare or 
254.32  medical assistance. 
254.33     (d) The commissioner shall redetermine provider payments 
254.34  made under MinnesotaCare to the appropriate medical assistance 
254.35  payments for those enrollees who subsequently become eligible 
254.36  for medical assistance. 
255.1      Sec. 22.  Minnesota Statutes 1997 Supplement, section 
255.2   256L.04, subdivision 9, is amended to read: 
255.3      Subd. 9.  [GENERAL ASSISTANCE MEDICAL CARE.] A person 
255.4   cannot have coverage under both MinnesotaCare and general 
255.5   assistance medical care in the same month.  Eligibility for 
255.6   MinnesotaCare cannot be replaced by eligibility for general 
255.7   assistance medical care, and eligibility for general assistance 
255.8   medical care cannot be replaced by eligibility for MinnesotaCare.
255.9      Sec. 23.  Minnesota Statutes 1997 Supplement, section 
255.10  256L.04, subdivision 10, is amended to read: 
255.11     Subd. 10.  [SPONSOR'S INCOME AND RESOURCES DEEMED 
255.12  AVAILABLE; DOCUMENTATION.] When determining eligibility for any 
255.13  federal or state benefits under sections 256L.01 to 256L.16 
255.14  256L.18, the income and resources of all noncitizens whose 
255.15  sponsor signed an affidavit of support as defined under United 
255.16  States Code, title 8, section 1183a, shall be deemed to include 
255.17  their sponsors' income and resources as defined in the Personal 
255.18  Responsibility and Work Opportunity Reconciliation Act of 1996, 
255.19  title IV, Public Law Number 104-193, sections 421 and 422, and 
255.20  subsequently set out in federal rules.  To be eligible for the 
255.21  program, noncitizens must provide documentation of their 
255.22  immigration status. 
255.23     Sec. 24.  Minnesota Statutes 1997 Supplement, section 
255.24  256L.04, is amended by adding a subdivision to read: 
255.25     Subd. 12.  [PERSONS IN DETENTION.] Beginning January 1, 
255.26  1999, an applicant residing in a correctional or detention 
255.27  facility is not eligible for MinnesotaCare.  An enrollee 
255.28  residing in a correctional or detention facility is not eligible 
255.29  at renewal of eligibility under section 256L.05, subdivision 3b. 
255.30     Sec. 25.  Minnesota Statutes 1997 Supplement, section 
255.31  256L.04, is amended by adding a subdivision to read: 
255.32     Subd. 13.  [FAMILIES WITH GRANDPARENTS, RELATIVE 
255.33  CARETAKERS, FOSTER PARENTS, OR LEGAL GUARDIANS.] Beginning 
255.34  January 1, 1999, in families that include a grandparent, 
255.35  relative caretaker as defined in the medical assistance program, 
255.36  foster parent, or legal guardian, the grandparent, relative 
256.1   caretaker, foster parent, or legal guardian may apply as a 
256.2   family or may apply separately for the children.  If the 
256.3   caretaker applies separately for the children, only the 
256.4   children's income is counted.  If the grandparent, relative 
256.5   caretaker, foster parent, or legal guardian applies with the 
256.6   children, their income is included in the gross family income 
256.7   for determining eligibility and premium amount. 
256.8      Sec. 26.  Minnesota Statutes 1997 Supplement, section 
256.9   256L.05, is amended by adding a subdivision to read: 
256.10     Subd. 1a.  [PERSON AUTHORIZED TO APPLY ON APPLICANT'S 
256.11  BEHALF.] Beginning January 1, 1999, a family member who is age 
256.12  18 or over or who is an authorized representative, as defined in 
256.13  the medical assistance program, may apply on an applicant's 
256.14  behalf. 
256.15     Sec. 27.  Minnesota Statutes 1997 Supplement, section 
256.16  256L.05, subdivision 2, is amended to read: 
256.17     Subd. 2.  [COMMISSIONER'S DUTIES.] The commissioner shall 
256.18  use individuals' social security numbers as identifiers for 
256.19  purposes of administering the plan and conduct data matches to 
256.20  verify income.  Applicants shall submit evidence of individual 
256.21  and family income, earned and unearned, including such as the 
256.22  most recent income tax return, wage slips, or other 
256.23  documentation that is determined by the commissioner as 
256.24  necessary to verify income eligibility.  The commissioner shall 
256.25  perform random audits to verify reported income and 
256.26  eligibility.  The commissioner may execute data sharing 
256.27  arrangements with the department of revenue and any other 
256.28  governmental agency in order to perform income verification 
256.29  related to eligibility and premium payment under the 
256.30  MinnesotaCare program. 
256.31     Sec. 28.  Minnesota Statutes 1997 Supplement, section 
256.32  256L.05, subdivision 3, is amended to read: 
256.33     Subd. 3.  [EFFECTIVE DATE OF COVERAGE.] The effective date 
256.34  of coverage is the first day of the month following the month in 
256.35  which eligibility is approved and the first premium payment has 
256.36  been received.  As provided in section 256B.057, coverage for 
257.1   newborns is automatic from the date of birth and must be 
257.2   coordinated with other health coverage.  The effective date of 
257.3   coverage for eligible newborns or eligible newly adoptive 
257.4   children added to a family receiving covered health services is 
257.5   the date of entry into the family.  The effective date of 
257.6   coverage for other new recipients added to the family receiving 
257.7   covered health services is the first day of the month following 
257.8   the month in which eligibility is approved and the first premium 
257.9   payment has been received or at renewal, whichever the family 
257.10  receiving covered health services prefers.  All eligibility 
257.11  criteria must be met by the family at the time the new family 
257.12  member is added.  The income of the new family member is 
257.13  included with the family's gross income and the adjusted premium 
257.14  begins in the month the new family member is added.  The premium 
257.15  must be received eight working days prior to the end of the 
257.16  month for coverage to begin the following month.  Benefits are 
257.17  not available until the day following discharge if an enrollee 
257.18  is hospitalized on the first day of coverage.  Notwithstanding 
257.19  any other law to the contrary, benefits under sections 256L.01 
257.20  to 256L.10 256L.18 are secondary to a plan of insurance or 
257.21  benefit program under which an eligible person may have coverage 
257.22  and the commissioner shall use cost avoidance techniques to 
257.23  ensure coordination of any other health coverage for eligible 
257.24  persons.  The commissioner shall identify eligible persons who 
257.25  may have coverage or benefits under other plans of insurance or 
257.26  who become eligible for medical assistance. 
257.27     Sec. 29.  Minnesota Statutes 1997 Supplement, section 
257.28  256L.05, is amended by adding a subdivision to read: 
257.29     Subd. 3a.  [RENEWAL OF ELIGIBILITY.] Beginning January 1, 
257.30  1999, an enrollee's eligibility must be renewed every 12 
257.31  months.  The 12-month period begins in the month after the month 
257.32  the application is approved.  
257.33     Sec. 30.  Minnesota Statutes 1997 Supplement, section 
257.34  256L.05, is amended by adding a subdivision to read: 
257.35     Subd. 3b.  [REAPPLICATION.] Beginning January 1, 1999, 
257.36  families and individuals must reapply after a lapse in coverage 
258.1   of one calendar month or more and must meet all eligibility 
258.2   criteria. 
258.3      Sec. 31.  Minnesota Statutes 1997 Supplement, section 
258.4   256L.05, subdivision 4, is amended to read: 
258.5      Subd. 4.  [APPLICATION PROCESSING.] The commissioner of 
258.6   human services shall determine an applicant's eligibility for 
258.7   MinnesotaCare no more than 30 days from the date that the 
258.8   application is received by the department of human services.  
258.9   Beginning January 1, 2000, this requirement also applies to 
258.10  local county human services agencies that determine eligibility 
258.11  for MinnesotaCare.  To prevent processing delays, applicants 
258.12  who, from the information provided on the application, appear to 
258.13  meet eligibility requirements shall be enrolled.  The enrollee 
258.14  must provide all required verifications within 30 days of 
258.15  enrollment or coverage from the program shall be terminated.  
258.16  Enrollees who are determined to be ineligible when verifications 
258.17  are provided shall be disenrolled from the program. 
258.18     Sec. 32.  Minnesota Statutes 1997 Supplement, section 
258.19  256L.06, subdivision 3, is amended to read: 
258.20     Subd. 3.  [ADMINISTRATION AND COMMISSIONER'S DUTIES.] (a) 
258.21  Premiums are dedicated to the commissioner for MinnesotaCare.  
258.22  The commissioner shall make an annual redetermination of 
258.23  continued eligibility and identify people who may become 
258.24  eligible for medical assistance.  
258.25     (b) The commissioner shall develop and implement procedures 
258.26  to:  (1) require enrollees to report changes in income; (2) 
258.27  adjust sliding scale premium payments, based upon changes in 
258.28  enrollee income; and (3) disenroll enrollees from MinnesotaCare 
258.29  for failure to pay required premiums.  Beginning July 1, 1998, 
258.30  failure to pay includes payment with a dishonored check and the 
258.31  commissioner may demand a guaranteed form of payment as the only 
258.32  means to replace a dishonored check. 
258.33     (c) Premiums are calculated on a calendar month basis and 
258.34  may be paid on a monthly, quarterly, or annual basis, with the 
258.35  first payment due upon notice from the commissioner of the 
258.36  premium amount required.  The commissioner shall inform 
259.1   applicants and enrollees of these premium payment options. 
259.2   Premium payment is required before enrollment is complete and to 
259.3   maintain eligibility in MinnesotaCare.  
259.4      (d) Nonpayment of the premium will result in disenrollment 
259.5   from the plan within one calendar month after the due date.  
259.6   Persons disenrolled for nonpayment or who voluntarily terminate 
259.7   coverage from the program may not reenroll until four calendar 
259.8   months have elapsed.  Persons disenrolled for nonpayment or who 
259.9   voluntarily terminate coverage from the program may not reenroll 
259.10  for four calendar months unless the person demonstrates good 
259.11  cause for nonpayment.  Good cause does not exist if a person 
259.12  chooses to pay other family expenses instead of the premium.  
259.13  The commissioner shall define good cause in rule. 
259.14     Sec. 33.  Minnesota Statutes 1997 Supplement, section 
259.15  256L.07, is amended to read: 
259.16     256L.07 [ELIGIBILITY FOR SUBSIDIZED PREMIUMS BASED ON 
259.17  SLIDING SCALE.] 
259.18     Subdivision 1.  [GENERAL REQUIREMENTS.] Families and 
259.19  individuals who enroll on or after October 1, 1992, are eligible 
259.20  for subsidized premium payments based on a sliding scale under 
259.21  section 256L.08 only if the family or individual meets the 
259.22  requirements in subdivisions 2 and 3.  Children already enrolled 
259.23  in the children's health plan as of September 30, 1992, eligible 
259.24  under section 256L.04, subdivision 1, paragraph (a), children 
259.25  who enroll in the MinnesotaCare program after September 30, 
259.26  1992, pursuant to Laws 1992, chapter 549, article 4, section 17, 
259.27  and children who enroll under section 256L.04, subdivision 6, 
259.28  are eligible for subsidized premium payments without meeting 
259.29  these requirements, as long as they maintain continuous coverage 
259.30  in the MinnesotaCare plan or medical assistance. (a) Children 
259.31  enrolled in the original children's health plan as of September 
259.32  30, 1992, children who enrolled in the MinnesotaCare program 
259.33  after September 30, 1992, pursuant to Laws 1992, chapter 549, 
259.34  article 4, section 17, and children who have family gross 
259.35  incomes that are equal to or less than 150 percent of the 
259.36  federal poverty guidelines are eligible for subsidized premium 
260.1   payments without meeting the requirements of subdivision 2, as 
260.2   long as they maintain continuous coverage in the MinnesotaCare 
260.3   program or medical assistance.  Children who apply for 
260.4   MinnesotaCare on or after the implementation date of the 
260.5   employer-subsidized health coverage program as described in 
260.6   section 45, who have family gross incomes that are equal to or 
260.7   less than 150 percent of the federal poverty guidelines, must 
260.8   meet the requirements of subdivision 2 to be eligible for 
260.9   MinnesotaCare. 
260.10     (b) Families and individuals who initially enrolled in 
260.11  MinnesotaCare under section 256L.04, and whose income increases 
260.12  above the limits established in section 256L.08, may continue 
260.13  enrollment and pay the full cost of coverage.  Families enrolled 
260.14  in MinnesotaCare under section 256L.04, subdivision 1, whose 
260.15  income increases above 275 percent of the federal poverty 
260.16  guidelines, are no longer eligible for the program and shall be 
260.17  disenrolled by the commissioner.  Individuals enrolled in 
260.18  MinnesotaCare under section 256L.04, subdivision 7, whose income 
260.19  increases above 175 percent of the federal poverty guidelines 
260.20  are no longer eligible for the program and shall be disenrolled 
260.21  by the commissioner.  For persons disenrolled under this 
260.22  subdivision, MinnesotaCare coverage terminates the last day of 
260.23  the calendar month following the month in which the commissioner 
260.24  determines that the income of a family or individual, determined 
260.25  over a four-month period as required by section 256L.15, 
260.26  subdivision 2, exceeds program income limits.  
260.27     (c) Notwithstanding paragraph (b), individuals and families 
260.28  may remain enrolled in MinnesotaCare if ten percent of their 
260.29  annual income is less than the annual premium for a policy with 
260.30  a $500 deductible available through the Minnesota comprehensive 
260.31  health association.  Individuals and families who are no longer 
260.32  eligible for MinnesotaCare under this subdivision shall be given 
260.33  an 18-month notice period from the date that ineligibility is 
260.34  determined before disenrollment.  
260.35     Subd. 2.  [MUST NOT HAVE ACCESS TO EMPLOYER-SUBSIDIZED 
260.36  COVERAGE.] (a) To be eligible for subsidized premium payments 
261.1   based on a sliding scale, a family or individual must not have 
261.2   access to subsidized health coverage through an employer, and 
261.3   must not have had access to subsidized health coverage through 
261.4   an employer for the 18 months prior to application for 
261.5   subsidized coverage under the MinnesotaCare program.  The 
261.6   requirement that the family or individual must not have had 
261.7   access to employer-subsidized coverage during the previous 18 
261.8   months does not apply if:  (1) employer-subsidized coverage was 
261.9   lost due to the death of an employee or divorce; (2) 
261.10  employer-subsidized coverage was lost because an individual 
261.11  became ineligible for coverage as a child or dependent; or (3) 
261.12  employer-subsidized coverage was lost for reasons that would not 
261.13  disqualify the individual for unemployment benefits under 
261.14  section 268.09 and the family or individual has not had access 
261.15  to employer-subsidized coverage since the loss of coverage.  If 
261.16  employer-subsidized coverage was lost for reasons that 
261.17  disqualify an individual for unemployment benefits under section 
261.18  268.09, children of that individual are exempt from the 
261.19  requirement of no access to employer subsidized coverage for the 
261.20  18 months prior to application, as long as the children have not 
261.21  had access to employer subsidized coverage since the 
261.22  disqualifying event.  The requirement that the.  A family or 
261.23  individual must not have had access to employer-subsidized 
261.24  coverage during the previous 18 months does apply if whose 
261.25  employer-subsidized coverage is lost due to an employer 
261.26  terminating health care coverage as an employee benefit during 
261.27  the previous 18 months is not eligible.  
261.28     (b) For purposes of this requirement, subsidized health 
261.29  coverage means health coverage for which the employer pays at 
261.30  least 50 percent of the cost of coverage for the employee, 
261.31  excluding dependent coverage or dependent, or a higher 
261.32  percentage as specified by the commissioner.  Children are 
261.33  eligible for employer-subsidized coverage through either parent, 
261.34  including the noncustodial parent.  The commissioner must treat 
261.35  employer contributions to Internal Revenue Code Section 125 
261.36  plans and any other employer benefits intended to pay health 
262.1   care costs as qualified employer subsidies toward the cost of 
262.2   health coverage for employees for purposes of this subdivision. 
262.3      Subd. 3.  [PERIOD UNINSURED OTHER HEALTH COVERAGE.] To be 
262.4   eligible for subsidized premium payments based on a sliding 
262.5   scale, (a) Families and individuals initially enrolled in the 
262.6   MinnesotaCare program under section 256L.04, subdivisions 5 and 
262.7   7, must have had no health coverage while enrolled or for at 
262.8   least four months prior to application and renewal.  Children 
262.9   enrolled in the original children's health plan and children in 
262.10  families with income equal to or less than 150 percent of the 
262.11  federal poverty guidelines, who have other health insurance, are 
262.12  eligible if the other health coverage meets the requirements of 
262.13  Minnesota Rules, part 9506.0020, subpart 3, item B.  The 
262.14  commissioner may change this eligibility criterion for sliding 
262.15  scale premiums in order to remain within the limits of available 
262.16  appropriations.  The requirement of at least four months of no 
262.17  health coverage prior to application for the MinnesotaCare 
262.18  program does not apply to: newborns. 
262.19     (1) families, children, and individuals who apply for the 
262.20  MinnesotaCare program upon termination from or as required by 
262.21  the medical assistance program, general assistance medical care 
262.22  program, or coverage under a regional demonstration project for 
262.23  the uninsured funded under section 256B.73, the Hennepin county 
262.24  assured care program, or the Group Health, Inc., community 
262.25  health plan; 
262.26     (2) families and individuals initially enrolled under 
262.27  section 256L.04, subdivisions 1, paragraph (a), and 3; 
262.28     (3) children enrolled pursuant to Laws 1992, chapter 549, 
262.29  article 4, section 17; or 
262.30     (4) individuals currently serving or who have served in the 
262.31  military reserves, and dependents of these individuals, if these 
262.32  individuals:  (i) reapply for MinnesotaCare coverage after a 
262.33  period of active military service during which they had been 
262.34  covered by the Civilian Health and Medical Program of the 
262.35  Uniformed Services (CHAMPUS); (ii) were covered under 
262.36  MinnesotaCare immediately prior to obtaining coverage under 
263.1   CHAMPUS; and (iii) have maintained continuous coverage. 
263.2      (b) For purposes of this section, medical assistance, 
263.3   general assistance medical care, and civilian health and medical 
263.4   program of the uniformed service, CHAMPUS, are not considered 
263.5   insurance or health coverage. 
263.6      (c) For purposes of this section, Medicare part A or B 
263.7   coverage under title XVIII of the Social Security Act, United 
263.8   States Code, title 42, sections 1395c to 1395w-4, is considered 
263.9   health coverage.  An applicant or enrollee may not refuse 
263.10  Medicare coverage to establish eligibility for MinnesotaCare. 
263.11     Sec. 34.  Minnesota Statutes 1997 Supplement, section 
263.12  256L.09, subdivision 2, is amended to read: 
263.13     Subd. 2.  [RESIDENCY REQUIREMENT.] (a) Prior to July 1, 
263.14  1997, to be eligible for health coverage under the MinnesotaCare 
263.15  program, families and individuals must be permanent residents of 
263.16  Minnesota.  
263.17     (b) Effective July 1, 1997, To be eligible for health 
263.18  coverage under the MinnesotaCare program, adults without 
263.19  children must be permanent residents of Minnesota. 
263.20     (c) Effective July 1, 1997, (b) To be eligible for health 
263.21  coverage under the MinnesotaCare program, pregnant women, 
263.22  families, and children must meet the residency requirements as 
263.23  provided by Code of Federal Regulations, title 42, section 
263.24  435.403, except that the provisions of section 256B.056, 
263.25  subdivision 1, shall apply upon receipt of federal approval. 
263.26     Sec. 35.  Minnesota Statutes 1997 Supplement, section 
263.27  256L.09, subdivision 4, is amended to read: 
263.28     Subd. 4.  [ELIGIBILITY AS MINNESOTA RESIDENT.] (a) For 
263.29  purposes of this section, a permanent Minnesota resident is a 
263.30  person who has demonstrated, through persuasive and objective 
263.31  evidence, that the person is domiciled in the state and intends 
263.32  to live in the state permanently. 
263.33     (b) To be eligible as a permanent resident, all applicants 
263.34  an applicant must demonstrate the requisite intent to live in 
263.35  the state permanently by: 
263.36     (1) showing that the applicant maintains a residence at a 
264.1   verified address other than a place of public accommodation, 
264.2   through the use of evidence of residence described in section 
264.3   256D.02, subdivision 12a, clause (1); 
264.4      (2) demonstrating that the applicant has been continuously 
264.5   domiciled in the state for no less than 180 days immediately 
264.6   before the application; and 
264.7      (3) signing an affidavit declaring that (A) the applicant 
264.8   currently resides in the state and intends to reside in the 
264.9   state permanently; and (B) the applicant did not come to the 
264.10  state for the primary purpose of obtaining medical coverage or 
264.11  treatment. 
264.12     (c) A person who is temporarily absent from the state does 
264.13  not lose eligibility for MinnesotaCare.  "Temporarily absent 
264.14  from the state" means the person is out of the state for a 
264.15  temporary purpose and intends to return when the purpose of the 
264.16  absence has been accomplished.  A person is not temporarily 
264.17  absent from the state if another state has determined that the 
264.18  person is a resident for any purpose.  If temporarily absent 
264.19  from the state, the person must follow the requirements of the 
264.20  health plan in which he or she is enrolled to receive services. 
264.21     Sec. 36.  Minnesota Statutes 1997 Supplement, section 
264.22  256L.09, subdivision 6, is amended to read: 
264.23     Subd. 6.  [12-MONTH PREEXISTING EXCLUSION.] If the 180-day 
264.24  requirement in subdivision 4, paragraph (b), clause (2), is 
264.25  determined by a court to be unconstitutional, the commissioner 
264.26  of human services shall impose a 12-month preexisting condition 
264.27  exclusion on coverage for persons who have been domiciled in the 
264.28  state for less than 180 days.  
264.29     Sec. 37.  Minnesota Statutes 1997 Supplement, section 
264.30  256L.11, subdivision 6, is amended to read: 
264.31     Subd. 6.  [ENROLLEES 18 OR OLDER.] Payment by the 
264.32  MinnesotaCare program for inpatient hospital services provided 
264.33  to MinnesotaCare enrollees eligible under section 256L.04, 
264.34  subdivision 7, or who qualify under section 256L.04, 
264.35  subdivisions 1 to 6 and 2, or 256L.13 with family gross income 
264.36  that exceeds 175 percent of the federal poverty guidelines and 
265.1   who are not pregnant, who are 18 years old or older on the date 
265.2   of admission to the inpatient hospital must be in accordance 
265.3   with paragraphs (a) and (b).  Payment for adults who are not 
265.4   pregnant and are eligible under section 256L.04, subdivisions 
265.5   1 to 6 and 2, or 256L.13, and whose incomes are equal to or less 
265.6   than 175 percent of the federal poverty guidelines, shall be as 
265.7   provided for under paragraph (c).  
265.8      (a) If the medical assistance rate minus any copayment 
265.9   required under section 256L.03, subdivision 4, is less than or 
265.10  equal to the amount remaining in the enrollee's benefit limit 
265.11  under section 256L.03, subdivision 3, payment must be the 
265.12  medical assistance rate minus any copayment required under 
265.13  section 256L.03, subdivision 4.  The hospital must not seek 
265.14  payment from the enrollee in addition to the copayment.  The 
265.15  MinnesotaCare payment plus the copayment must be treated as 
265.16  payment in full. 
265.17     (b) If the medical assistance rate minus any copayment 
265.18  required under section 256L.03, subdivision 4, is greater than 
265.19  the amount remaining in the enrollee's benefit limit under 
265.20  section 256L.03, subdivision 3, payment must be the lesser of: 
265.21     (1) the amount remaining in the enrollee's benefit limit; 
265.22  or 
265.23     (2) charges submitted for the inpatient hospital services 
265.24  less any copayment established under section 256L.03, 
265.25  subdivision 4. 
265.26     The hospital may seek payment from the enrollee for the 
265.27  amount by which usual and customary charges exceed the payment 
265.28  under this paragraph.  If payment is reduced under section 
265.29  256L.03, subdivision 3, paragraph (c) (b), the hospital may not 
265.30  seek payment from the enrollee for the amount of the reduction. 
265.31     (c) For admissions occurring during the period of July 1, 
265.32  1997, through June 30, 1998, for adults who are not pregnant and 
265.33  are eligible under section 256L.04, subdivisions 1 to 6 and 
265.34  2, or 256L.13, and whose incomes are equal to or less than 175 
265.35  percent of the federal poverty guidelines, the commissioner 
265.36  shall pay hospitals directly, up to the medical assistance 
266.1   payment rate, for inpatient hospital benefits in excess of the 
266.2   $10,000 annual inpatient benefit limit. 
266.3      Sec. 38.  Minnesota Statutes 1997 Supplement, section 
266.4   256L.12, subdivision 5, is amended to read: 
266.5      Subd. 5.  [ELIGIBILITY FOR OTHER STATE PROGRAMS.] 
266.6   MinnesotaCare enrollees who become eligible for medical 
266.7   assistance or general assistance medical care will remain in the 
266.8   same managed care plan if the managed care plan has a contract 
266.9   for that population.  Effective January 1, 1998, MinnesotaCare 
266.10  enrollees who were formerly eligible for general assistance 
266.11  medical care pursuant to section 256D.03, subdivision 3, within 
266.12  six months of MinnesotaCare enrollment and were enrolled in a 
266.13  prepaid health plan pursuant to section 256D.03, subdivision 4, 
266.14  paragraph (d), must remain in the same managed care plan if the 
266.15  managed care plan has a contract for that population.  Contracts 
266.16  between the department of human services and managed care plans 
266.17  must include MinnesotaCare, and medical assistance and may, at 
266.18  the option of the commissioner of human services, also include 
266.19  general assistance medical care.  Managed care plans must 
266.20  participate in the MinnesotaCare and general assistance medical 
266.21  care programs under a contract with the department of human 
266.22  services in service areas where they participate in the medical 
266.23  assistance program. 
266.24     Sec. 39.  Minnesota Statutes 1997 Supplement, section 
266.25  256L.15, is amended to read: 
266.26     256L.15 [PREMIUMS.] 
266.27     Subdivision 1.  [PREMIUM DETERMINATION.] Families and with 
266.28  children enrolled according to sections 256L.13 to 256L.16 and 
266.29  individuals shall pay a premium determined according to a 
266.30  sliding fee based on the cost of coverage as a percentage of the 
266.31  family's gross family income.  Pregnant women and children under 
266.32  age two are exempt from the provisions of section 256L.06, 
266.33  subdivision 3, paragraph (b), clause (3), requiring 
266.34  disenrollment for failure to pay premiums.  For pregnant women, 
266.35  this exemption continues until the first day of the month 
266.36  following the 60th day postpartum.  Women who remain enrolled 
267.1   during pregnancy or the postpartum period, despite nonpayment of 
267.2   premiums, shall be disenrolled on the first of the month 
267.3   following the 60th day postpartum for the penalty period that 
267.4   otherwise applies under section 256L.06, unless they begin 
267.5   paying premiums. 
267.6      Subd. 1a.  [PAYMENT OPTIONS.] The commissioner may offer 
267.7   the following payment options to an enrollee: 
267.8      (1) payment by check; 
267.9      (2) payment by credit card; 
267.10     (3) payment by recurring automatic checking withdrawal; 
267.11     (4) payment by one-time electronic transfer of funds; 
267.12     (5) payment by wage withholding with the consent of the 
267.13  employer and the employee; or 
267.14     (6) payment by using state tax refund payments. 
267.15     At application or reapplication, a MinnesotaCare applicant 
267.16  or enrollee may authorize the commissioner to use the Revenue 
267.17  Recapture Act in chapter 270A to collect funds from the 
267.18  applicant's or enrollee's state income tax refund for the 
267.19  purposes of meeting all or part of the applicant's or enrollee's 
267.20  MinnesotaCare premium obligation for the forthcoming year.  The 
267.21  applicant or enrollee may authorize the commissioner to apply 
267.22  for the state working family tax credit on behalf of the 
267.23  applicant or enrollee.  The setoff due under this subdivision 
267.24  shall not be subject to the $10 fee under section 270A.07, 
267.25  subdivision 1.  
267.26     Subd. 1b.  [PAYMENTS NONREFUNDABLE.] MinnesotaCare premiums 
267.27  are not refundable. 
267.28     Subd. 2.  [SLIDING SCALE TO DETERMINE PERCENTAGE OF GROSS 
267.29  INDIVIDUAL OR FAMILY INCOME.] The commissioner shall establish a 
267.30  sliding fee scale to determine the percentage of 
267.31  gross individual or family income that households at different 
267.32  income levels must pay to obtain coverage through the 
267.33  MinnesotaCare program.  The sliding fee scale must be based on 
267.34  the enrollee's gross individual or family income during the 
267.35  previous four months.  The sliding fee scale begins with a 
267.36  premium of 1.5 percent of gross individual or family income for 
268.1   individuals or families with incomes below the limits for the 
268.2   medical assistance program for families and children and 
268.3   proceeds through the following evenly spaced steps:  1.8, 2.3, 
268.4   3.1, 3.8, 4.8, 5.9, 7.4, and 8.8 percent.  These percentages are 
268.5   matched to evenly spaced income steps ranging from the medical 
268.6   assistance income limit for families and children to 275 percent 
268.7   of the federal poverty guidelines for the applicable family 
268.8   size.  The sliding fee scale and percentages are not subject to 
268.9   the provisions of chapter 14.  If a family or individual reports 
268.10  increased income after enrollment, premiums shall not be 
268.11  adjusted until eligibility renewal.  
268.12     Subd. 3.  [EXCEPTIONS TO SLIDING SCALE.] An annual premium 
268.13  of $48 is required for all children who are eligible according 
268.14  to section 256L.13, subdivision 4 in families with income at or 
268.15  less than 150 percent of federal poverty guidelines. 
268.16     Sec. 40.  Minnesota Statutes 1997 Supplement, section 
268.17  256L.17, is amended by adding a subdivision to read: 
268.18     Subd. 6.  [WAIVER OF MAINTENANCE OF EFFORT 
268.19  REQUIREMENT.] Unless a federal waiver of the maintenance of 
268.20  effort requirements of section 2105(d) of title XXI of the 
268.21  Balanced Budget Act of 1997, Public Law Number 105-33, Statutes 
268.22  at Large, volume 111, page 251, is granted by the federal 
268.23  Department of Health and Human Services by September 30, 1998, 
268.24  this section does not apply to children.  The commissioner shall 
268.25  publish a notice in the State Register upon receipt of a federal 
268.26  waiver. 
268.27     Sec. 41.  Minnesota Statutes 1997 Supplement, section 
268.28  270A.03, subdivision 5, is amended to read: 
268.29     Subd. 5.  [DEBT.] "Debt" means a legal obligation of a 
268.30  natural person to pay a fixed and certain amount of money, which 
268.31  equals or exceeds $25 and which is due and payable to a claimant 
268.32  agency.  The term includes criminal fines imposed under section 
268.33  609.10 or 609.125 and restitution.  A debt may arise under a 
268.34  contractual or statutory obligation, a court order, or other 
268.35  legal obligation, but need not have been reduced to judgment.  
268.36     A debt includes any legal obligation of a current recipient 
269.1   of assistance which is based on overpayment of an assistance 
269.2   grant where that payment is based on a client waiver or an 
269.3   administrative or judicial finding of an intentional program 
269.4   violation; or where the debt is owed to a program wherein the 
269.5   debtor is not a client at the time notification is provided to 
269.6   initiate recovery under this chapter and the debtor is not a 
269.7   current recipient of food stamps, transitional child care, or 
269.8   transitional medical assistance. 
269.9      A debt does not include any legal obligation to pay a 
269.10  claimant agency for medical care, including hospitalization if 
269.11  the income of the debtor at the time when the medical care was 
269.12  rendered does not exceed the following amount: 
269.13     (1) for an unmarried debtor, an income of $6,400 or less; 
269.14     (2) for a debtor with one dependent, an income of $8,200 or 
269.15  less; 
269.16     (3) for a debtor with two dependents, an income of $9,700 
269.17  or less; 
269.18     (4) for a debtor with three dependents, an income of 
269.19  $11,000 or less; 
269.20     (5) for a debtor with four dependents, an income of $11,600 
269.21  or less; and 
269.22     (6) for a debtor with five or more dependents, an income of 
269.23  $12,100 or less.  
269.24     The income amounts in this subdivision shall be adjusted 
269.25  for inflation for debts incurred in calendar years 1991 and 
269.26  thereafter.  The dollar amount of each income level that applied 
269.27  to debts incurred in the prior year shall be increased in the 
269.28  same manner as provided in section 290.06, subdivision 2d, for 
269.29  the expansion of the tax rate brackets. 
269.30     Debt also includes an agreement to pay a MinnesotaCare 
269.31  premium, regardless of the dollar amount of the premium 
269.32  authorized under section 256L.15, subdivision 1a. 
269.33     Sec. 42.  Laws 1997, chapter 225, article 2, section 64, is 
269.34  amended to read: 
269.35     Sec. 64.  [EFFECTIVE DATE.] 
269.36     Section 8 is effective for payments made for MinnesotaCare 
270.1   services on or after July 1, 1996.  Section 23 is effective the 
270.2   day following final enactment.  Section 46 is effective January 
270.3   1, 1998, and applies to high deductible health plans issued or 
270.4   renewed on or after that date. 
270.5      Sec. 43.  [FEDERAL EARNED INCOME TAX CREDIT.] 
270.6      The commissioner of human services shall seek a federal 
270.7   waiver from the appropriate federal agency to allow the state to 
270.8   use the federal earned income tax credit for payment of state 
270.9   subsidized health care premiums. 
270.10     Sec. 44.  [INPATIENT HOSPITAL COPAYMENT.] 
270.11     If federal approval of a waiver to obtain federal Medicaid 
270.12  funding for coverage provided to parents enrolled in the 
270.13  MinnesotaCare program is contingent upon not applying the 
270.14  inpatient hospital services copayment under Minnesota Statutes, 
270.15  section 256L.03, subdivision 5, clause (1), then the inpatient 
270.16  hospital services copayment shall not be applied to enrollees 
270.17  for whom the state receives federal Medicaid funding.  
270.18     Sec. 45.  [EMPLOYER-SUBSIDIZED HEALTH COVERAGE PROGRAM.] 
270.19     Subdivision 1.  [PLAN SUBMITTAL.] The commissioner of human 
270.20  services shall submit to the health care financing 
270.21  administration a plan to obtain federal funding, according to 
270.22  section 2105(c)(3) of the Balanced Budget Act of 1997, Public 
270.23  Law Number 105-33, to subsidize health insurance coverage for 
270.24  families who are ineligible for the MinnesotaCare program, due 
270.25  to the availability of employer-subsidized insurance as defined 
270.26  in Minnesota Statutes, section 256L.07, subdivision 2.  The 
270.27  program shall pay the difference between: 
270.28     (1) what the family would have paid under the sliding 
270.29  premium scale specified in Minnesota Statutes, section 256L.15, 
270.30  subdivision 2, up to a maximum of five percent of the family's 
270.31  income, had the family been covered under MinnesotaCare; and 
270.32     (2) the required employee contribution for 
270.33  employer-subsidized health coverage.  
270.34     Subd. 2.  [CONSULTATION AND PLAN SUBMITTAL.] In developing 
270.35  the plan, the commissioner shall consult with the legislative 
270.36  commission on health care access.  The commissioner shall submit 
271.1   the plan and draft legislation to the legislature by December 
271.2   15, 1998, and shall not implement the plan without legislative 
271.3   approval.  
271.4      Subd. 3.  [PHASE-OUT OF MINNESOTACARE ELIGIBILITY.] As part 
271.5   of the plan submitted to the legislature under subdivision 2, 
271.6   the commissioner shall include a process to phase out 
271.7   MinnesotaCare eligibility for children who have access to 
271.8   employer-subsidized health coverage as defined under Minnesota 
271.9   Statutes, section 256L.07, subdivision 2, and who:  
271.10     (1) enrolled in the original children's health plan as of 
271.11  September 30, 1992; 
271.12     (2) enrolled in the MinnesotaCare program after September 
271.13  30, 1992, according to Laws 1992, chapter 549, article 4, 
271.14  section 17; or 
271.15     (3) have family gross incomes that are equal to or less 
271.16  than 150 percent of the federal poverty guidelines. 
271.17     Sec. 46.  [STATE CHILDREN'S HEALTH INSURANCE PROGRAM.] 
271.18     Subdivision 1.  [AUTHORITY.] The commissioner is authorized 
271.19  to claim enhanced federal matching funds under sections 
271.20  2105(a)(2) and 2110 of the Balanced Budget Act of 1997, Public 
271.21  Law Number 105-33, for any and all state or local expenditures 
271.22  eligible as child health assistance for targeted low-income 
271.23  children and health service initiatives for low-income 
271.24  children.  If required by federal law or regulations, the 
271.25  commissioner is authorized to establish accounts, make 
271.26  appropriate payments, and receive reimbursement from state and 
271.27  local entities providing child health assistance or health 
271.28  services for low-income children, in order to obtain enhanced 
271.29  federal matching funds.  Enhanced federal matching funds 
271.30  received as a result of providing health care coverage 
271.31  authorized under this section shall be deposited in the health 
271.32  care access fund.  Enhanced federal matching funds received as a 
271.33  result of outreach activities described in subdivision 2, clause 
271.34  (2), shall be dedicated to the commissioner of human services to 
271.35  be used for those outreach purposes.  
271.36     Subd. 2.  [ENHANCED MATCHING FUNDS FOR CHILDREN'S HEALTH 
272.1   CARE INITIATIVES.] The commissioner shall submit to the health 
272.2   care financing administration all plans and waiver requests 
272.3   necessary to obtain enhanced matching funds under the state 
272.4   children's health insurance program established as Title 21 of 
272.5   the Balanced Budget Act of 1997, Public Law Number 105-33, for:  
272.6      (1) expenditures made under Minnesota Statutes, section 
272.7   256B.057, subdivision 8; 
272.8      (2) MinnesotaCare outreach activities authorized by Laws 
272.9   1997, chapter 225, article 7, section 2, subdivision 1; and 
272.10     (3) expenditures made under the MinnesotaCare program, the 
272.11  medical assistance program, or any initiative authorized by the 
272.12  legislature including an initiative to subsidize health 
272.13  insurance coverage for families who are ineligible for 
272.14  MinnesotaCare due to the availability of employer-subsidized 
272.15  insurance. 
272.16     The commissioner shall submit to the legislature, by 
272.17  January 15, 1999, all statutory changes necessary to receive 
272.18  enhanced federal matching funds.  
272.19     Sec. 47.  [REVISOR'S INSTRUCTION.] 
272.20     In each section of Minnesota Statutes referred to in column 
272.21  A, the revisor of statutes shall delete the reference in column 
272.22  B and insert the reference in column C. 
272.23     Column A            Column B            Column C
272.24     256B.057, subd. 1a  256L.08             256L.15
272.25     256B.0645           256L.14             256L.03, subd. 1a
272.26     256L.16             256L.14             256L.03, subd. 1a
272.27     Sec. 48.  [REPEALER.] 
272.28     Minnesota Statutes 1997 Supplement, sections 256B.057, 
272.29  subdivision 1a; 256L.04, subdivisions 3, 4, 5, and 6; 256L.06, 
272.30  subdivisions 1 and 2; 256L.08; 256L.09, subdivision 3; 256L.13; 
272.31  and 256L.14, are repealed. 
272.32     Sec. 49.  [EFFECTIVE DATES.] 
272.33     (a) Sections 2, 7, 8, 10, 13, 15, 16, 17 to 23, 27, 28, 31 
272.34  to 39, 41, 47, and 48 are effective January 1, 1999. 
272.35     (b) Sections 4, 5, and 40 are effective September 30, 1998. 
272.36     (c) Section 6 is effective July 1, 1998, except paragraph 
273.1   (a), clause (4), which is effective October 1, 1998. 
273.2      (d) Sections 14 and 42 to 46 are effective the day 
273.3   following final enactment. 
273.4                              ARTICLE 6
273.5            WELFARE REFORM; WORK FIRST; ASSISTANCE PROGRAM 
273.6               AND CHILD SUPPORT CHANGES; AND LICENSING 
273.7      Section 1.  Minnesota Statutes 1997 Supplement, section 
273.8   119B.01, subdivision 16, is amended to read: 
273.9      Subd. 16.  [TRANSITION YEAR FAMILIES.] "Transition year 
273.10  families" means families who have received AFDC, or who were 
273.11  eligible to receive AFDC after choosing to discontinue receipt 
273.12  of the cash portion of MFIP-S assistance under section 256J.31, 
273.13  subdivision 12, for at least three of the last six months before 
273.14  losing eligibility for AFDC due to increased hours of 
273.15  employment, or increased income from employment or child or 
273.16  spousal support, or the loss of income disregards due to time 
273.17  limitations. 
273.18     Sec. 2.  Minnesota Statutes 1997 Supplement, section 
273.19  119B.02, is amended to read: 
273.20     119B.02 [DUTIES OF COMMISSIONER.] 
273.21     Subdivision 1.  [CHILD CARE SERVICES.] The commissioner 
273.22  shall develop standards for county and human services boards to 
273.23  provide child care services to enable eligible families to 
273.24  participate in employment, training, or education programs.  
273.25  Within the limits of available appropriations, the commissioner 
273.26  shall distribute money to counties to reduce the costs of child 
273.27  care for eligible families.  The commissioner shall adopt rules 
273.28  to govern the program in accordance with this section.  The 
273.29  rules must establish a sliding schedule of fees for parents 
273.30  receiving child care services.  The rules shall provide that 
273.31  funds received as a lump sum payment of child support arrearages 
273.32  shall not be counted as income to a family in the month received 
273.33  but shall be prorated over the 12 months following receipt and 
273.34  added to the family income during those months.  In the rules 
273.35  adopted under this section, county and human services boards 
273.36  shall be authorized to establish policies for payment of child 
274.1   care spaces for absent children, when the payment is required by 
274.2   the child's regular provider.  The rules shall not set a maximum 
274.3   number of days for which absence payments can be made, but 
274.4   instead shall direct the county agency to set limits and pay for 
274.5   absences according to the prevailing market practice in the 
274.6   county.  County policies for payment of absences shall be 
274.7   subject to the approval of the commissioner.  The commissioner 
274.8   shall maximize the use of federal money in section 256.736 and 
274.9   other programs that provide federal or state reimbursement for 
274.10  child care services for low-income families who are in 
274.11  education, training, job search, or other activities allowed 
274.12  under those programs.  Money appropriated under this section 
274.13  must be coordinated with the programs that provide federal 
274.14  reimbursement for child care services to accomplish this 
274.15  purpose.  Federal reimbursement obtained must be allocated to 
274.16  the county that spent money for child care that is federally 
274.17  reimbursable under programs that provide federal reimbursement 
274.18  for child care services.  The counties shall use the federal 
274.19  money to expand child care services.  The commissioner may adopt 
274.20  rules under chapter 14 to implement and coordinate federal 
274.21  program requirements. 
274.22     Subd. 2.  [CONTRACTUAL AGREEMENTS WITH TRIBES.] The 
274.23  commissioner may enter into contractual agreements with a 
274.24  federally recognized Indian tribe with a reservation in 
274.25  Minnesota to carry out the responsibilities of county human 
274.26  service agencies to the extent necessary for the tribe to 
274.27  operate child care assistance programs under sections 119B.03 
274.28  and 119B.05.  An agreement may allow for the tribe to be 
274.29  reimbursed for child care assistance services provided under 
274.30  section 119B.05.  The commissioner shall consult with the 
274.31  affected county or counties in the contractual agreement 
274.32  negotiations, if the county or counties wish to be included, in 
274.33  order to avoid the duplication of county and tribal child care 
274.34  services.  Funding to support services under section 119B.03 may 
274.35  be transferred to the federally recognized Indian tribe with a 
274.36  reservation in Minnesota from allocations available to counties 
275.1   in which reservation boundaries lie.  When funding is 
275.2   transferred under section 119B.03, the amount shall be 
275.3   commensurate to estimates of the proportion of reservation 
275.4   residents with characteristics identified in section 119B.03, 
275.5   subdivision 6, to the total population of county residents with 
275.6   those same characteristics.  
275.7      Sec. 3.  Minnesota Statutes 1996, section 245A.03, is 
275.8   amended by adding a subdivision to read: 
275.9      Subd. 2b.  [EXCEPTION.] The provision in subdivision 2, 
275.10  clause (2), does not apply to: 
275.11     (1) a child care provider who as an applicant for licensure 
275.12  or as a license holder has received a license denial under 
275.13  section 245A.05, a fine under section 245A.06, or a sanction 
275.14  under section 245A.07 from the commissioner that has not been 
275.15  reversed on appeal; or 
275.16     (2) a child care provider, or a child care provider who has 
275.17  a household member who, as a result of a licensing process, has 
275.18  a disqualification under this chapter that has not been set 
275.19  aside by the commissioner. 
275.20     Sec. 4.  Minnesota Statutes 1996, section 245A.03, is 
275.21  amended by adding a subdivision to read: 
275.22     Subd. 4.  [EXCLUDED CHILD CARE PROGRAMS; RIGHT TO SEEK 
275.23  LICENSURE.] Nothing in this section shall prohibit a child care 
275.24  program that is excluded from licensure under subdivision 2, 
275.25  clause (2), or under Laws 1997, chapter 248, section 46, as 
275.26  amended by Laws 1997, First Special Session chapter 5, section 
275.27  10, from seeking a license under this chapter.  The commissioner 
275.28  shall ensure that any application received from such an excluded 
275.29  provider is processed in the same manner as all other 
275.30  applications for licensed family day care. 
275.31     Sec. 5.  Minnesota Statutes 1996, section 245A.14, 
275.32  subdivision 4, is amended to read: 
275.33     Subd. 4.  [SPECIAL FAMILY DAY CARE HOMES.] Nonresidential 
275.34  child care programs serving 14 or fewer children that are 
275.35  conducted at a location other than the license holder's own 
275.36  residence shall be licensed under this section and the rules 
276.1   governing family day care or group family day care if:  
276.2      (a) the license holder is the primary provider of care; 
276.3      (b) and the nonresidential child care program is conducted 
276.4   in a dwelling that is located on a residential lot; and or 
276.5      (c) the license holder complies with all other requirements 
276.6   of sections 245A.01 to 245A.15 and the rules governing family 
276.7   day care or group family day care. 
276.8      (b) the license holder is an employer who may or may not be 
276.9   the primary provider of care, and the purpose for the child care 
276.10  program is to provide child care services to children of the 
276.11  license holder's employees.  
276.12     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
276.13  245B.06, subdivision 2, is amended to read: 
276.14     Subd. 2.  [RISK MANAGEMENT PLAN.] The license holder must 
276.15  develop and document in writing a risk management plan that 
276.16  incorporates the individual abuse prevention plan as required in 
276.17  chapter 245C section 245A.65.  License holders jointly providing 
276.18  services to a consumer shall coordinate and use the resulting 
276.19  assessment of risk areas for the development of this plan.  Upon 
276.20  initiation of services, the license holder will have in place an 
276.21  initial risk management plan that identifies areas in which the 
276.22  consumer is vulnerable, including health, safety, and 
276.23  environmental issues and the supports the provider will have in 
276.24  place to protect the consumer and to minimize these risks.  The 
276.25  plan must be changed based on the needs of the individual 
276.26  consumer and reviewed at least annually. 
276.27     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
276.28  256.01, subdivision 2, is amended to read: 
276.29     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
276.30  section 241.021, subdivision 2, the commissioner of human 
276.31  services shall: 
276.32     (1) Administer and supervise all forms of public assistance 
276.33  provided for by state law and other welfare activities or 
276.34  services as are vested in the commissioner.  Administration and 
276.35  supervision of human services activities or services includes, 
276.36  but is not limited to, assuring timely and accurate distribution 
277.1   of benefits, completeness of service, and quality program 
277.2   management.  In addition to administering and supervising human 
277.3   services activities vested by law in the department, the 
277.4   commissioner shall have the authority to: 
277.5      (a) require county agency participation in training and 
277.6   technical assistance programs to promote compliance with 
277.7   statutes, rules, federal laws, regulations, and policies 
277.8   governing human services; 
277.9      (b) monitor, on an ongoing basis, the performance of county 
277.10  agencies in the operation and administration of human services, 
277.11  enforce compliance with statutes, rules, federal laws, 
277.12  regulations, and policies governing welfare services and promote 
277.13  excellence of administration and program operation; 
277.14     (c) develop a quality control program or other monitoring 
277.15  program to review county performance and accuracy of benefit 
277.16  determinations; 
277.17     (d) require county agencies to make an adjustment to the 
277.18  public assistance benefits issued to any individual consistent 
277.19  with federal law and regulation and state law and rule and to 
277.20  issue or recover benefits as appropriate; 
277.21     (e) delay or deny payment of all or part of the state and 
277.22  federal share of benefits and administrative reimbursement 
277.23  according to the procedures set forth in section 256.017; and 
277.24     (f) make contracts with and grants to public and private 
277.25  agencies and organizations, both profit and nonprofit, and 
277.26  individuals, using appropriated funds; and 
277.27     (g) enter into contractual agreements with federally 
277.28  recognized Indian tribes with a reservation in Minnesota to the 
277.29  extent necessary for the tribe to operate a federally approved 
277.30  family assistance program or any other program under the 
277.31  supervision of the commissioner.  The commissioner shall consult 
277.32  with the affected county or counties in the contractual 
277.33  agreement negotiations, if the county or counties wish to be 
277.34  included, in order to avoid the duplication of county and tribal 
277.35  assistance program services.  The commissioner may establish 
277.36  necessary accounts for the purposes of receiving and disbursing 
278.1   funds as necessary for the operation of the programs. 
278.2      (2) Inform county agencies, on a timely basis, of changes 
278.3   in statute, rule, federal law, regulation, and policy necessary 
278.4   to county agency administration of the programs. 
278.5      (3) Administer and supervise all child welfare activities; 
278.6   promote the enforcement of laws protecting handicapped, 
278.7   dependent, neglected and delinquent children, and children born 
278.8   to mothers who were not married to the children's fathers at the 
278.9   times of the conception nor at the births of the children; 
278.10  license and supervise child-caring and child-placing agencies 
278.11  and institutions; supervise the care of children in boarding and 
278.12  foster homes or in private institutions; and generally perform 
278.13  all functions relating to the field of child welfare now vested 
278.14  in the state board of control. 
278.15     (4) Administer and supervise all noninstitutional service 
278.16  to handicapped persons, including those who are visually 
278.17  impaired, hearing impaired, or physically impaired or otherwise 
278.18  handicapped.  The commissioner may provide and contract for the 
278.19  care and treatment of qualified indigent children in facilities 
278.20  other than those located and available at state hospitals when 
278.21  it is not feasible to provide the service in state hospitals. 
278.22     (5) Assist and actively cooperate with other departments, 
278.23  agencies and institutions, local, state, and federal, by 
278.24  performing services in conformity with the purposes of Laws 
278.25  1939, chapter 431. 
278.26     (6) Act as the agent of and cooperate with the federal 
278.27  government in matters of mutual concern relative to and in 
278.28  conformity with the provisions of Laws 1939, chapter 431, 
278.29  including the administration of any federal funds granted to the 
278.30  state to aid in the performance of any functions of the 
278.31  commissioner as specified in Laws 1939, chapter 431, and 
278.32  including the promulgation of rules making uniformly available 
278.33  medical care benefits to all recipients of public assistance, at 
278.34  such times as the federal government increases its participation 
278.35  in assistance expenditures for medical care to recipients of 
278.36  public assistance, the cost thereof to be borne in the same 
279.1   proportion as are grants of aid to said recipients. 
279.2      (7) Establish and maintain any administrative units 
279.3   reasonably necessary for the performance of administrative 
279.4   functions common to all divisions of the department. 
279.5      (8) Act as designated guardian of both the estate and the 
279.6   person of all the wards of the state of Minnesota, whether by 
279.7   operation of law or by an order of court, without any further 
279.8   act or proceeding whatever, except as to persons committed as 
279.9   mentally retarded.  For children under the guardianship of the 
279.10  commissioner whose interests would be best served by adoptive 
279.11  placement, the commissioner may contract with a licensed 
279.12  child-placing agency to provide adoption services.  A contract 
279.13  with a licensed child-placing agency must be designed to 
279.14  supplement existing county efforts and may not replace existing 
279.15  county programs, unless the replacement is agreed to by the 
279.16  county board and the appropriate exclusive bargaining 
279.17  representative or the commissioner has evidence that child 
279.18  placements of the county continue to be substantially below that 
279.19  of other counties. 
279.20     (9) Act as coordinating referral and informational center 
279.21  on requests for service for newly arrived immigrants coming to 
279.22  Minnesota. 
279.23     (10) The specific enumeration of powers and duties as 
279.24  hereinabove set forth shall in no way be construed to be a 
279.25  limitation upon the general transfer of powers herein contained. 
279.26     (11) Establish county, regional, or statewide schedules of 
279.27  maximum fees and charges which may be paid by county agencies 
279.28  for medical, dental, surgical, hospital, nursing and nursing 
279.29  home care and medicine and medical supplies under all programs 
279.30  of medical care provided by the state and for congregate living 
279.31  care under the income maintenance programs. 
279.32     (12) Have the authority to conduct and administer 
279.33  experimental projects to test methods and procedures of 
279.34  administering assistance and services to recipients or potential 
279.35  recipients of public welfare.  To carry out such experimental 
279.36  projects, it is further provided that the commissioner of human 
280.1   services is authorized to waive the enforcement of existing 
280.2   specific statutory program requirements, rules, and standards in 
280.3   one or more counties.  The order establishing the waiver shall 
280.4   provide alternative methods and procedures of administration, 
280.5   shall not be in conflict with the basic purposes, coverage, or 
280.6   benefits provided by law, and in no event shall the duration of 
280.7   a project exceed four years.  It is further provided that no 
280.8   order establishing an experimental project as authorized by the 
280.9   provisions of this section shall become effective until the 
280.10  following conditions have been met: 
280.11     (a) The secretary of health, education, and welfare of the 
280.12  United States has agreed, for the same project, to waive state 
280.13  plan requirements relative to statewide uniformity. 
280.14     (b) A comprehensive plan, including estimated project 
280.15  costs, shall be approved by the legislative advisory commission 
280.16  and filed with the commissioner of administration.  
280.17     (13) According to federal requirements, establish 
280.18  procedures to be followed by local welfare boards in creating 
280.19  citizen advisory committees, including procedures for selection 
280.20  of committee members. 
280.21     (14) Allocate federal fiscal disallowances or sanctions 
280.22  which are based on quality control error rates for the aid to 
280.23  families with dependent children, Minnesota family investment 
280.24  program-statewide, medical assistance, or food stamp program in 
280.25  the following manner:  
280.26     (a) One-half of the total amount of the disallowance shall 
280.27  be borne by the county boards responsible for administering the 
280.28  programs.  For the medical assistance, MFIP-S, and AFDC 
280.29  programs, disallowances shall be shared by each county board in 
280.30  the same proportion as that county's expenditures for the 
280.31  sanctioned program are to the total of all counties' 
280.32  expenditures for the AFDC, MFIP-S, and medical assistance 
280.33  programs.  For the food stamp program, sanctions shall be shared 
280.34  by each county board, with 50 percent of the sanction being 
280.35  distributed to each county in the same proportion as that 
280.36  county's administrative costs for food stamps are to the total 
281.1   of all food stamp administrative costs for all counties, and 50 
281.2   percent of the sanctions being distributed to each county in the 
281.3   same proportion as that county's value of food stamp benefits 
281.4   issued are to the total of all benefits issued for all 
281.5   counties.  Each county shall pay its share of the disallowance 
281.6   to the state of Minnesota.  When a county fails to pay the 
281.7   amount due hereunder, the commissioner may deduct the amount 
281.8   from reimbursement otherwise due the county, or the attorney 
281.9   general, upon the request of the commissioner, may institute 
281.10  civil action to recover the amount due. 
281.11     (b) Notwithstanding the provisions of paragraph (a), if the 
281.12  disallowance results from knowing noncompliance by one or more 
281.13  counties with a specific program instruction, and that knowing 
281.14  noncompliance is a matter of official county board record, the 
281.15  commissioner may require payment or recover from the county or 
281.16  counties, in the manner prescribed in paragraph (a), an amount 
281.17  equal to the portion of the total disallowance which resulted 
281.18  from the noncompliance, and may distribute the balance of the 
281.19  disallowance according to paragraph (a).  
281.20     (15) Develop and implement special projects that maximize 
281.21  reimbursements and result in the recovery of money to the 
281.22  state.  For the purpose of recovering state money, the 
281.23  commissioner may enter into contracts with third parties.  Any 
281.24  recoveries that result from projects or contracts entered into 
281.25  under this paragraph shall be deposited in the state treasury 
281.26  and credited to a special account until the balance in the 
281.27  account reaches $1,000,000.  When the balance in the account 
281.28  exceeds $1,000,000, the excess shall be transferred and credited 
281.29  to the general fund.  All money in the account is appropriated 
281.30  to the commissioner for the purposes of this paragraph. 
281.31     (16) Have the authority to make direct payments to 
281.32  facilities providing shelter to women and their children 
281.33  according to section 256D.05, subdivision 3.  Upon the written 
281.34  request of a shelter facility that has been denied payments 
281.35  under section 256D.05, subdivision 3, the commissioner shall 
281.36  review all relevant evidence and make a determination within 30 
282.1   days of the request for review regarding issuance of direct 
282.2   payments to the shelter facility.  Failure to act within 30 days 
282.3   shall be considered a determination not to issue direct payments.
282.4      (17) Have the authority to establish and enforce the 
282.5   following county reporting requirements:  
282.6      (a) The commissioner shall establish fiscal and statistical 
282.7   reporting requirements necessary to account for the expenditure 
282.8   of funds allocated to counties for human services programs.  
282.9   When establishing financial and statistical reporting 
282.10  requirements, the commissioner shall evaluate all reports, in 
282.11  consultation with the counties, to determine if the reports can 
282.12  be simplified or the number of reports can be reduced. 
282.13     (b) The county board shall submit monthly or quarterly 
282.14  reports to the department as required by the commissioner.  
282.15  Monthly reports are due no later than 15 working days after the 
282.16  end of the month.  Quarterly reports are due no later than 30 
282.17  calendar days after the end of the quarter, unless the 
282.18  commissioner determines that the deadline must be shortened to 
282.19  20 calendar days to avoid jeopardizing compliance with federal 
282.20  deadlines or risking a loss of federal funding.  Only reports 
282.21  that are complete, legible, and in the required format shall be 
282.22  accepted by the commissioner.  
282.23     (c) If the required reports are not received by the 
282.24  deadlines established in clause (b), the commissioner may delay 
282.25  payments and withhold funds from the county board until the next 
282.26  reporting period.  When the report is needed to account for the 
282.27  use of federal funds and the late report results in a reduction 
282.28  in federal funding, the commissioner shall withhold from the 
282.29  county boards with late reports an amount equal to the reduction 
282.30  in federal funding until full federal funding is received.  
282.31     (d) A county board that submits reports that are late, 
282.32  illegible, incomplete, or not in the required format for two out 
282.33  of three consecutive reporting periods is considered 
282.34  noncompliant.  When a county board is found to be noncompliant, 
282.35  the commissioner shall notify the county board of the reason the 
282.36  county board is considered noncompliant and request that the 
283.1   county board develop a corrective action plan stating how the 
283.2   county board plans to correct the problem.  The corrective 
283.3   action plan must be submitted to the commissioner within 45 days 
283.4   after the date the county board received notice of noncompliance.
283.5      (e) The final deadline for fiscal reports or amendments to 
283.6   fiscal reports is one year after the date the report was 
283.7   originally due.  If the commissioner does not receive a report 
283.8   by the final deadline, the county board forfeits the funding 
283.9   associated with the report for that reporting period and the 
283.10  county board must repay any funds associated with the report 
283.11  received for that reporting period. 
283.12     (f) The commissioner may not delay payments, withhold 
283.13  funds, or require repayment under paragraph (c) or (e) if the 
283.14  county demonstrates that the commissioner failed to provide 
283.15  appropriate forms, guidelines, and technical assistance to 
283.16  enable the county to comply with the requirements.  If the 
283.17  county board disagrees with an action taken by the commissioner 
283.18  under paragraph (c) or (e), the county board may appeal the 
283.19  action according to sections 14.57 to 14.69. 
283.20     (g) Counties subject to withholding of funds under 
283.21  paragraph (c) or forfeiture or repayment of funds under 
283.22  paragraph (e) shall not reduce or withhold benefits or services 
283.23  to clients to cover costs incurred due to actions taken by the 
283.24  commissioner under paragraph (c) or (e). 
283.25     (18) Allocate federal fiscal disallowances or sanctions for 
283.26  audit exceptions when federal fiscal disallowances or sanctions 
283.27  are based on a statewide random sample for the foster care 
283.28  program under title IV-E of the Social Security Act, United 
283.29  States Code, title 42, in direct proportion to each county's 
283.30  title IV-E foster care maintenance claim for that period. 
283.31     (19) Be responsible for ensuring the detection, prevention, 
283.32  investigation, and resolution of fraudulent activities or 
283.33  behavior by applicants, recipients, and other participants in 
283.34  the human services programs administered by the department. 
283.35     (20) Require county agencies to identify overpayments, 
283.36  establish claims, and utilize all available and cost-beneficial 
284.1   methodologies to collect and recover these overpayments in the 
284.2   human services programs administered by the department. 
284.3      (21) Have the authority to administer a drug rebate program 
284.4   for drugs purchased pursuant to the senior citizen drug program 
284.5   established under section 256.955 after the beneficiary's 
284.6   satisfaction of any deductible established in the program.  The 
284.7   commissioner shall require a rebate agreement from all 
284.8   manufacturers of covered drugs as defined in section 256B.0625, 
284.9   subdivision 13.  For each drug, the amount of the rebate shall 
284.10  be equal to the basic rebate as defined for purposes of the 
284.11  federal rebate program in United States Code, title 42, section 
284.12  1396r-8(c)(1).  This basic rebate shall be applied to 
284.13  single-source and multiple-source drugs.  The manufacturers must 
284.14  provide full payment within 30 days of receipt of the state 
284.15  invoice for the rebate within the terms and conditions used for 
284.16  the federal rebate program established pursuant to section 1927 
284.17  of title XIX of the Social Security Act.  The manufacturers must 
284.18  provide the commissioner with any information necessary to 
284.19  verify the rebate determined per drug.  The rebate program shall 
284.20  utilize the terms and conditions used for the federal rebate 
284.21  program established pursuant to section 1927 of title XIX of the 
284.22  Social Security Act. 
284.23     Sec. 8.  Minnesota Statutes 1996, section 256.014, 
284.24  subdivision 1, is amended to read: 
284.25     Subdivision 1.  [ESTABLISHMENT OF SYSTEMS.] The 
284.26  commissioner of human services shall establish and enhance 
284.27  computer systems necessary for the efficient operation of the 
284.28  programs the commissioner supervises, including: 
284.29     (1) management and administration of the food stamp and 
284.30  income maintenance programs, including the electronic 
284.31  distribution of benefits; 
284.32     (2) management and administration of the child support 
284.33  enforcement program; and 
284.34     (3) administration of medical assistance and general 
284.35  assistance medical care. 
284.36     The commissioner shall distribute the nonfederal share of 
285.1   the costs of operating and maintaining the systems to the 
285.2   commissioner and to the counties participating in the system in 
285.3   a manner that reflects actual system usage, except that the 
285.4   nonfederal share of the costs of the MAXIS computer system and 
285.5   child support enforcement systems shall be borne entirely by the 
285.6   commissioner.  Development costs must not be assessed against 
285.7   county agencies. 
285.8      The commissioner may enter into contractual agreements with 
285.9   federally recognized Indian tribes with a reservation in 
285.10  Minnesota to participate in state-operated computer systems 
285.11  related to the management and administration of the food stamp, 
285.12  income maintenance, child support enforcement, and medical 
285.13  assistance and general assistance medical care programs to the 
285.14  extent necessary for the tribe to operate a federally approved 
285.15  family assistance program or any other program under the 
285.16  supervision of the commissioner. 
285.17     Sec. 9.  Minnesota Statutes 1997 Supplement, section 
285.18  256.031, subdivision 6, is amended to read: 
285.19     Subd. 6.  [END OF FIELD TRIALS.] (a) Upon agreement with 
285.20  the federal government, the field trials of the Minnesota family 
285.21  investment plan will end June 30, 1998.  
285.22     (b) Families in the comparison group under subdivision 3, 
285.23  paragraph (d), clause (i), receiving aid to families with 
285.24  dependent children under sections 256.72 to 256.87, and STRIDE 
285.25  services under section 256.736 will continue in those programs 
285.26  until June 30, 1998.  After June 30, 1998, families who cease 
285.27  receiving assistance under the Minnesota family investment plan 
285.28  and comparison group families who cease receiving assistance 
285.29  under AFDC and STRIDE who are eligible for the Minnesota family 
285.30  investment program-statewide (MFIP-S), medical assistance, 
285.31  general assistance medical care, or the food stamp program shall 
285.32  be placed with their consent on the programs for which they are 
285.33  eligible. 
285.34     (c) Families who cease receiving assistance under the MFIP 
285.35  and comparison families who cease receiving assistance under 
285.36  AFDC and STRIDE who are ineligible for MFIP-S due to increased 
286.1   income from employment, or increased child or spousal support or 
286.2   a combination of employment income and child or spousal support, 
286.3   shall be eligible for transition year child care under section 
286.4   119B.05, and extended medical assistance under section 
286.5   256B.0635.  For the purpose of assistance for transition year 
286.6   child care and determining receipt of extended medical 
286.7   assistance, receipt of AFDC and MFIP shall be considered to be 
286.8   the same as receipt of MFIP-S. 
286.9      Sec. 10.  Minnesota Statutes 1997 Supplement, section 
286.10  256.741, is amended by adding a subdivision to read: 
286.11     Subd. 2a.  [FAMILIES-FIRST DISTRIBUTION OF CHILD SUPPORT 
286.12  ARREARAGES.] When the public authority collects support 
286.13  arrearages on behalf of an individual who is receiving 
286.14  assistance provided under MFIP or MFIP-R under this chapter, 
286.15  MFIP-S under chapter 256J, or work first under chapter 256K, and 
286.16  the public authority has the option of applying the collection 
286.17  to arrears permanently assigned to the state or to arrears 
286.18  temporarily assigned to the state, the public authority shall 
286.19  first apply the collection to satisfy those arrears that are 
286.20  permanently assigned to the state.  
286.21     Sec. 11.  Minnesota Statutes 1997 Supplement, section 
286.22  256.9864, is amended to read: 
286.23     256.9864 [REPORTS BY RECIPIENT.] 
286.24     (a) An assistance unit with a recent work history or with 
286.25  earned income shall report monthly to the county agency on 
286.26  income received and other circumstances affecting eligibility or 
286.27  assistance amounts.  All other assistance units shall report on 
286.28  income and other circumstances affecting eligibility and 
286.29  assistance amounts, as specified by the state agency. 
286.30     (b) An assistance unit required to submit a report on the 
286.31  form designated by the commissioner and within ten days of the 
286.32  due date or the date of the significant change, whichever is 
286.33  later, or otherwise report significant changes which would 
286.34  affect eligibility or assistance amounts, is considered to have 
286.35  continued its application for assistance effective the date the 
286.36  required report is received by the county agency, if a complete 
287.1   report is received within a calendar month in which assistance 
287.2   was received, except that no assistance shall be paid for the 
287.3   period beginning with the end of the month in which the report 
287.4   was due and ending with the date the report was received by the 
287.5   county agency. 
287.6      Sec. 12.  Minnesota Statutes 1997 Supplement, section 
287.7   256B.062, is amended to read: 
287.8      256B.062 [CONTINUED ELIGIBILITY.] 
287.9      Medical assistance may be paid for persons who received aid 
287.10  to families with dependent children in at least three of the six 
287.11  months preceding the month in which the person became ineligible 
287.12  for aid to families with dependent children, if the 
287.13  ineligibility was due to an increase in hours of employment or 
287.14  employment income or due to the loss of an earned income 
287.15  disregard.  A person who is eligible for extended medical 
287.16  assistance is entitled to six months of assistance without 
287.17  reapplication, unless the assistance unit ceases to include a 
287.18  dependent child.  For a person under 21 years of age, medical 
287.19  assistance may not be discontinued within the six-month period 
287.20  of extended eligibility until it has been determined that the 
287.21  person is not otherwise eligible for medical assistance.  
287.22  Medical assistance may be continued for an additional six months 
287.23  if the person meets all requirements for the additional six 
287.24  months, according to Title XIX of the Social Security Act, as 
287.25  amended by section 303 of the Family Support Act of 1988, Public 
287.26  Law Number 100-485.  This section is repealed effective March 31 
287.27  July 1, 1998.  
287.28     Sec. 13.  Minnesota Statutes 1997 Supplement, section 
287.29  256B.0635, is amended by adding a subdivision to read: 
287.30     Subd. 3.  [MEDICAL ASSISTANCE FOR MFIP-S PARTICIPANTS WHO 
287.31  OPT TO DISCONTINUE MONTHLY CASH ASSISTANCE.] Upon federal 
287.32  approval, medical assistance is available to persons who 
287.33  received MFIP-S in at least three of the six months preceding 
287.34  the month in which the person opted to discontinue receiving 
287.35  MFIP-S cash assistance under section 256J.31, subdivision 12.  A 
287.36  person who is eligible for medical assistance under this section 
288.1   may receive medical assistance without reapplication as long as 
288.2   the person meets MFIP-S eligibility requirements, unless the 
288.3   assistance unit does not include a dependent child.  Medical 
288.4   assistance may be paid pursuant to subdivisions 1 and 2 for 
288.5   persons who are no longer eligible for MFIP-S due to increased 
288.6   employment or child support.  A person may be eligible for 
288.7   MinnesotaCare due to increased employment or child support, and 
288.8   as such must be informed of the option to transition onto 
288.9   MinnesotaCare. 
288.10     Sec. 14.  Minnesota Statutes 1997 Supplement, section 
288.11  256D.05, subdivision 8, is amended to read: 
288.12     Subd. 8.  [CITIZENSHIP.] (a) Effective July 1, 1997, 
288.13  citizenship requirements for applicants and recipients under 
288.14  sections 256D.01 to 256D.03, subdivision 2, and 256D.04 to 
288.15  256D.21 shall be determined the same as under section 256J.11, 
288.16  except that legal noncitizens who are applicants or recipients 
288.17  must have been residents of Minnesota on March 1, 1997.  Legal 
288.18  noncitizens who arrive in Minnesota after March 1, 1997, and 
288.19  become elderly or disabled after that date, and are otherwise 
288.20  eligible for general assistance can receive benefits under this 
288.21  section.  The income and assets of sponsors of noncitizens shall 
288.22  be deemed available to general assistance applicants and 
288.23  recipients according to the Personal Responsibility and Work 
288.24  Opportunity Reconciliation Act of 1996, Public Law Number 
288.25  104-193, title IV, sections 421 and 422, and subsequently set 
288.26  out in federal rules. 
288.27     (b) As a condition of eligibility, each legal adult 
288.28  noncitizen in the assistance unit who has resided in the country 
288.29  for four years or more and who is under 70 years of age must: 
288.30     (1) be enrolled in a literacy class, English as a second 
288.31  language class, or a citizen class; 
288.32     (2) be applying for admission to a literacy class, English 
288.33  as a second language class, and is on a waiting list; 
288.34     (3) be in the process of applying for a waiver from the 
288.35  Immigration and Naturalization Service of the English language 
288.36  or civics requirements of the citizenship test; 
289.1      (4) have submitted an application for citizenship to the 
289.2   Immigration and Naturalization Service and is waiting for a 
289.3   testing date or a subsequent swearing in ceremony; or 
289.4      (5) have been denied citizenship due to a failure to pass 
289.5   the test after two attempts or because of an inability to 
289.6   understand the rights and responsibilities of becoming a United 
289.7   States citizen, as documented by the Immigration and 
289.8   Naturalization Service or the county. 
289.9      If the county social service agency determines that a legal 
289.10  noncitizen subject to the requirements of this subdivision will 
289.11  require more than one year of English language training, then 
289.12  the requirements of clause (1) or (2) shall be imposed after the 
289.13  legal noncitizen has resided in the country for three years.  
289.14  Individuals who reside in a facility licensed under chapter 
289.15  144A, 144D, 245A, or 256I are exempt from the requirements of 
289.16  this section. 
289.17     Sec. 15.  Minnesota Statutes 1996, section 256D.051, is 
289.18  amended by adding a subdivision to read: 
289.19     Subd. 18.  [WAIVER OF SERVICE COST REIMBURSEMENT LIMIT FOR 
289.20  PARTICIPANTS WITH SIGNIFICANT BARRIERS TO EMPLOYMENT.] 
289.21     (a) To the extent of available resources, the commissioner 
289.22  may waive the $400 service cost limit specified in subdivision 6 
289.23  for county agencies who propose to provide enhanced services 
289.24  under the food stamp employment and training program to 
289.25  hard-to-employ individuals.  A "hard-to-employ individual" is 
289.26  defined as: 
289.27     (1) a recipient of general assistance under chapter 256D; 
289.28  or 
289.29     (2) an individual with at least one of the following three 
289.30  barriers to employment: 
289.31     (i) the individual has not completed secondary school or 
289.32  obtained a general equivalency development diploma or an adult 
289.33  diploma, and has low skills in reading or mathematics; 
289.34     (ii) the individual requires substance abuse treatment for 
289.35  employment; and 
289.36     (iii) the individual has a poor work history. 
290.1      (b) To obtain a waiver, the county agency must submit a 
290.2   waiver request to the commissioner.  The request must specify:  
290.3      (1) the number of hard-to-employ individuals the agency 
290.4   plans to serve; 
290.5      (2) the nature of the enhanced employment and training 
290.6   services the agency will provide; and 
290.7      (3) the agency's plan for providing referrals for substance 
290.8   abuse assessment and treatment for hard-to-employ individuals 
290.9   who require substance abuse treatment for employment. 
290.10     Sec. 16.  [256D.053] [MINNESOTA FOOD ASSISTANCE PROGRAM.] 
290.11     Subdivision 1.  [PROGRAM ESTABLISHED.] For the period of 
290.12  July 1, 1998, to June 30, 1999, the Minnesota food assistance 
290.13  program is established to provide food assistance to legal 
290.14  noncitizens residing in this state who are ineligible to 
290.15  participate in the federal Food Stamp Program solely due to the 
290.16  provisions of section 402 or 403 of Public Law Number 104-193, 
290.17  as authorized by Title VII of the 1997 Emergency Supplemental 
290.18  Appropriations Act, Public Law Number 105-18. 
290.19     Subd. 2.  [ELIGIBILITY REQUIREMENTS.] To be eligible for 
290.20  the Minnesota food assistance program, all of the following 
290.21  conditions must be met: 
290.22     (1) the applicant must meet the initial and ongoing 
290.23  eligibility requirements for the federal Food Stamp Program, 
290.24  except for the applicant's ineligible immigration status; 
290.25     (2) the applicant must be either a qualified noncitizen as 
290.26  defined in section 256J.08, subdivision 73, or a noncitizen 
290.27  otherwise residing lawfully in the United States; 
290.28     (3) the applicant must be a resident of the state; and 
290.29     (4) the applicant must not be receiving assistance under 
290.30  the MFIP-S or the work first program. 
290.31     Subd. 3.  [PROGRAM ADMINISTRATION.] (a) The rules for the 
290.32  Minnesota food assistance program shall follow exactly the 
290.33  regulations for the federal Food Stamp Program, except for the 
290.34  provisions pertaining to immigration status under sections 402 
290.35  or 403 of Public Law Number 104-193. 
290.36     (b) The county agency shall use the income, budgeting, and 
291.1   benefit allotment regulations of the federal Food Stamp Program 
291.2   to calculate an eligible recipient's monthly Minnesota food 
291.3   assistance program benefit.  Until September 30, 1998, eligible 
291.4   recipients under this subdivision shall receive the average per 
291.5   person food stamp issuance in Minnesota in the fiscal year 
291.6   ending June 30, 1997.  Beginning October 1, 1998, eligible 
291.7   recipients shall receive the same level of benefits as those 
291.8   provided by the federal Food Stamp Program to similarly situated 
291.9   citizen recipients.  The monthly Minnesota food assistance 
291.10  program benefits shall not exceed an amount equal to the amount 
291.11  of federal Food Stamp Program benefits the household would 
291.12  receive if all members of the household were eligible for the 
291.13  federal Food Stamp Program. 
291.14     (c) Minnesota food assistance program benefits must be 
291.15  disregarded as income in all programs that do not count food 
291.16  stamps as income. 
291.17     (d) The county agency must redetermine a Minnesota food 
291.18  assistance program recipient's eligibility for the federal Food 
291.19  Stamp Program when the agency receives information that the 
291.20  recipient's legal immigration status has changed in such a way 
291.21  that would make the recipient potentially eligible for the 
291.22  federal Food Stamp Program. 
291.23     (e) Until October 1, 1998, the commissioner may provide 
291.24  benefits under this section in cash. 
291.25     Subd. 4.  [STATE PLAN REQUIRED.] The commissioner shall 
291.26  submit a state plan to the secretary of agriculture to allow the 
291.27  commissioner to purchase federal Food Stamp Program benefits for 
291.28  each Minnesota food assistance program recipient who is 
291.29  ineligible to participate in the federal Food Stamp Program 
291.30  solely due to the provisions of section 402 or 403 of Public Law 
291.31  Number 104-193, as authorized by Title VII of the 1997 Emergency 
291.32  Supplemental Appropriations Act, Public Law Number 105-18.  The 
291.33  commissioner shall enter into a contract as necessary with the 
291.34  secretary to use the existing federal Food Stamp Program 
291.35  benefits delivery system for the purposes of administering the 
291.36  Minnesota food assistance program under this section. 
292.1      Sec. 17.  Minnesota Statutes 1996, section 256D.46, 
292.2   subdivision 2, is amended to read: 
292.3      Subd. 2.  [INCOME AND RESOURCE TEST.] All income and 
292.4   resources available to the recipient must be considered in 
292.5   determining the recipient's ability to meet the emergency need.  
292.6   Property that can be liquidated in time to resolve the emergency 
292.7   and income, (excluding Minnesota supplemental aid issued for 
292.8   current month's need) an amount equal to the Minnesota 
292.9   supplemental aid standard of assistance, that is normally 
292.10  disregarded or excluded under the Minnesota supplemental aid 
292.11  program must be considered available to meet the emergency need. 
292.12     Sec. 18.  Minnesota Statutes 1997 Supplement, section 
292.13  256J.02, subdivision 4, is amended to read: 
292.14     Subd. 4.  [AUTHORITY TO TRANSFER.] Subject to limitations 
292.15  of title I of Public Law Number 104-193, the Personal 
292.16  Responsibility and Work Opportunity Reconciliation Act of 
292.17  1996, as amended, the legislature may transfer money from the 
292.18  TANF block grant to the child care fund under chapter 119B, or 
292.19  the Title XX block grant under section 256E.07. 
292.20     Sec. 19.  Minnesota Statutes 1997 Supplement, section 
292.21  256J.03, is amended to read: 
292.22     256J.03 [TANF RESERVE ACCOUNT.] 
292.23     Subdivision 1.  The Minnesota family investment 
292.24  program-statewide/TANF TANF reserve account is created in the 
292.25  state treasury.  Funds retained or deposited in the TANF reserve 
292.26  shall include:  (1) funds designated by the legislature and; (2) 
292.27  unexpended state funds resulting from the acceleration of TANF 
292.28  expenditures under subdivision 2; (3) earnings available from 
292.29  the federal TANF block grant appropriated to the commissioner 
292.30  but not expended in the biennium beginning July 1, 1997, shall 
292.31  be retained; and (4) TANF funds available in fiscal years 1998, 
292.32  1999, 2000, and 2001 that are not spent or not budgeted to be 
292.33  spent in those years. 
292.34     Funds deposited in the reserve account to must be expended 
292.35  for the Minnesota family investment program-statewide in fiscal 
292.36  year 2000 and subsequent fiscal years and directly related state 
293.1   programs for the purposes in subdivision 3. 
293.2      Subd. 2.  [AUTHORIZATION TO ACCELERATE EXPENDITURE OF TANF 
293.3   FUNDS.] The commissioner may expend federal TANF block grant 
293.4   funds in excess of appropriated levels for the purpose of 
293.5   accelerating federal funding of the MFIP program.  By the end of 
293.6   the fiscal year in which the additional federal expenditures are 
293.7   made, the commissioner must deposit into the reserve account an 
293.8   amount of unexpended state funds appropriated for assistance to 
293.9   families grants, AFDC, and MFIP equal to the additional federal 
293.10  expenditures.  Reserve funds may be spent as TANF appropriations 
293.11  if insufficient TANF funds are available because of acceleration.
293.12     Subd. 3.  [ALLOWED TRANSFER PURPOSE.] Funds from the 
293.13  reserve account may be used for the following purposes: 
293.14     (1) unanticipated TANF block grant maintenance of effort 
293.15  shortfalls; 
293.16     (2) MFIP cost increases due to reduced federal revenues and 
293.17  federal law changes; 
293.18     (3) one-half of the MFIP general fund cost increase in 
293.19  fiscal year 2000 and subsequent fiscal years due to caseload 
293.20  increases over fiscal year 1999; and 
293.21     (4) transfers allowed under section 256J.02, subdivision 4. 
293.22     Sec. 20.  Minnesota Statutes 1997 Supplement, section 
293.23  256J.08, subdivision 11, is amended to read: 
293.24     Subd. 11.  [CAREGIVER.] "Caregiver" means a minor child's 
293.25  natural or adoptive parent or parents and stepparent who live in 
293.26  the home with the minor child.  For purposes of determining 
293.27  eligibility for this program, caregiver also means any of the 
293.28  following individuals, if adults, who live with and provide care 
293.29  and support to a minor child when the minor child's natural or 
293.30  adoptive parent or parents or stepparents do not reside in the 
293.31  same home:  legal custodians custodian or guardian, grandfather, 
293.32  grandmother, brother, sister, stepfather, stepmother, 
293.33  stepbrother, stepsister, uncle, aunt, first cousin or first 
293.34  cousin once removed, nephew, niece, person of preceding 
293.35  generation as denoted by prefixes of "great," "great-great," or 
293.36  "great-great-great," or a spouse of any person named in the 
294.1   above groups even after the marriage ends by death or divorce. 
294.2      Sec. 21.  Minnesota Statutes 1997 Supplement, section 
294.3   256J.08, is amended by adding a subdivision to read: 
294.4      Subd. 24a.  [DISQUALIFIED.] "Disqualified" means being 
294.5   ineligible to receive MFIP-S due to noncooperation with program 
294.6   requirements.  Except for persons whose disqualification is 
294.7   based on fraud, a disqualified person can take action to correct 
294.8   the reason for ineligibility.  
294.9      Sec. 22.  Minnesota Statutes 1997 Supplement, section 
294.10  256J.08, subdivision 26, is amended to read: 
294.11     Subd. 26.  [EARNED INCOME.] "Earned income" means cash or 
294.12  in-kind income earned through the receipt of wages, salary, 
294.13  commissions, profit from employment activities, net profit from 
294.14  self-employment activities, payments made by an employer for 
294.15  regularly accrued vacation or sick leave, and any other profit 
294.16  from activity earned through effort or labor.  The income must 
294.17  be in return for, or as a result of, legal activity.  
294.18     Sec. 23.  Minnesota Statutes 1997 Supplement, section 
294.19  256J.08, subdivision 28, is amended to read: 
294.20     Subd. 28.  [EMERGENCY.] "Emergency" means a situation or a 
294.21  set of circumstances that causes or threatens to cause 
294.22  destitution to a minor child family with a child under age 21.  
294.23     Sec. 24.  Minnesota Statutes 1997 Supplement, section 
294.24  256J.08, subdivision 40, is amended to read: 
294.25     Subd. 40.  [GROSS EARNED INCOME.] "Gross earned income" 
294.26  means earned income from employment before mandatory and 
294.27  voluntary payroll deductions.  Gross earned income includes 
294.28  salaries, wages, tips, gratuities, commissions, incentive 
294.29  payments from work or training programs, payments made by an 
294.30  employer for regularly accrued vacation or sick leave, and 
294.31  profits from other activity earned by an individual's effort or 
294.32  labor.  Gross earned income includes uniform and meal allowances 
294.33  if federal income tax is deducted from the allowance.  Gross 
294.34  earned income includes flexible work benefits received from an 
294.35  employer if the employee has the option of receiving the benefit 
294.36  or benefits in cash.  For self-employment, gross earned income 
295.1   is the nonexcluded income minus expenses for the business.  
295.2      Sec. 25.  Minnesota Statutes 1997 Supplement, section 
295.3   256J.08, is amended by adding a subdivision to read: 
295.4      Subd. 50a.  [INTERSTATE TRANSITIONAL STANDARD.] "Interstate 
295.5   transitional standard" means a combination of the cash 
295.6   assistance a family with no other income would have received in 
295.7   the state of previous residence and the Minnesota food portion 
295.8   for the appropriate size family. 
295.9      Sec. 26.  Minnesota Statutes 1997 Supplement, section 
295.10  256J.08, is amended by adding a subdivision to read: 
295.11     Subd. 51a.  [LEGAL CUSTODIAN.] "Legal custodian" means any 
295.12  person who is under a legal obligation to provide care for a 
295.13  minor and who is in fact providing care for a minor.  For an 
295.14  Indian child, "custodian" means any Indian person who has legal 
295.15  custody of an Indian child under tribal law or custom, under 
295.16  state law, or to whom temporary physical care, custody, and 
295.17  control has been transferred by the parent of the child, as 
295.18  provided in section 257.351, subdivision 8. 
295.19     Sec. 27.  Minnesota Statutes 1997 Supplement, section 
295.20  256J.08, subdivision 60, is amended to read: 
295.21     Subd. 60.  [MINOR CHILD.] "Minor child" means a child who 
295.22  is living in the same home of a parent or other caregiver, is 
295.23  not the parent of a child in the home, and is either less than 
295.24  18 years of age or is under the age of 19 years and is regularly 
295.25  attending as a full-time student and is expected to complete a 
295.26  high school or in a secondary school or pursuing a full-time 
295.27  secondary level course of vocational or technical training 
295.28  designed to fit students for gainful employment before reaching 
295.29  age 19. 
295.30     Sec. 28.  Minnesota Statutes 1997 Supplement, section 
295.31  256J.08, is amended by adding a subdivision to read: 
295.32     Subd. 61a.  [NONCUSTODIAL PARENT.] "Noncustodial parent" 
295.33  means a minor child's parent who does not live in the same home 
295.34  as the child.  
295.35     Sec. 29.  Minnesota Statutes 1997 Supplement, section 
295.36  256J.08, subdivision 68, is amended to read: 
296.1      Subd. 68.  [PERSONAL PROPERTY.] "Personal property" means 
296.2   an item of value that is not real property, including the value 
296.3   of a contract for deed held by a seller, assets held in trust on 
296.4   behalf of members of an assistance unit, cash surrender value of 
296.5   life insurance, value of a prepaid burial, savings account, 
296.6   value of stocks and bonds, and value of retirement accounts. 
296.7      Sec. 30.  Minnesota Statutes 1997 Supplement, section 
296.8   256J.08, subdivision 73, is amended to read: 
296.9      Subd. 73.  [QUALIFIED NONCITIZEN.] "Qualified noncitizen" 
296.10  means a person: 
296.11     (1) who was lawfully admitted for permanent residence 
296.12  pursuant to United States Code, title 8; 
296.13     (2) who was admitted to the United States as a refugee 
296.14  pursuant to United States Code, title 8; section 1157; 
296.15     (3) whose deportation is being withheld pursuant to United 
296.16  States Code, title 8, section 1253(h); 
296.17     (4) who was paroled for a period of at least one year 
296.18  pursuant to United States Code, title 8, section 1182(d)(5); 
296.19     (5) who was granted conditional entry pursuant to United 
296.20  State Code, title 8, section 1153(a)(7); 
296.21     (6) who was granted asylum pursuant to United States Code, 
296.22  title 8, section 1158; or 
296.23     (7) determined to be a battered noncitizen by the United 
296.24  States Attorney General according to the Illegal Immigration 
296.25  Reform and Immigrant Responsibility Act of 1996, Title V of the 
296.26  Omnibus Consolidated Appropriations Bill, Public Law Number 
296.27  104-208; 
296.28     (8) who is a child of a noncitizen determined to be a 
296.29  battered noncitizen by the United States Attorney General 
296.30  according to the Illegal Immigration Reform and Responsibility 
296.31  Act of 1996, title V, Public Law Number 104-200; or 
296.32     (9) who was admitted as a Cuban or Haitian entrant. 
296.33     Sec. 31.  Minnesota Statutes 1997 Supplement, section 
296.34  256J.08, is amended by adding a subdivision to read: 
296.35     Subd. 82a.  [SHARED HOUSEHOLD STANDARD.] "Shared household 
296.36  standard" means the basic standard used when the household 
297.1   includes an unrelated member.  The cash portion of the shared 
297.2   household standard is equal to 90 percent of the cash portion of 
297.3   the transitional standard.  The cash portion of the shared 
297.4   household standard plus the food portion equals the full shared 
297.5   household standard. 
297.6      Sec. 32.  Minnesota Statutes 1997 Supplement, section 
297.7   256J.08, is amended by adding a subdivision to read: 
297.8      Subd. 82b.  [SHELTER COSTS.] "Shelter costs" means rent, 
297.9   manufactured home lot rental costs, or monthly principal, 
297.10  interest, insurance premiums, and property taxes due for 
297.11  mortgages or contracts for deed. 
297.12     Sec. 33.  Minnesota Statutes 1997 Supplement, section 
297.13  256J.08, subdivision 83, is amended to read: 
297.14     Subd. 83.  [SIGNIFICANT CHANGE.] "Significant change" means 
297.15  a decline in gross income of 35 36 percent or more from the 
297.16  income used to determine the grant for the current month. 
297.17     Sec. 34.  Minnesota Statutes 1997 Supplement, section 
297.18  256J.08, is amended by adding a subdivision to read: 
297.19     Subd. 86a.  [UNRELATED MEMBER.] "Unrelated member" means an 
297.20  individual in the household who does not meet the definition of 
297.21  an eligible caregiver, but does not include an individual who 
297.22  provides child care to a child in the assistance unit. 
297.23     Sec. 35.  Minnesota Statutes 1997 Supplement, section 
297.24  256J.09, subdivision 6, is amended to read: 
297.25     Subd. 6.  [INVALID REASON FOR DELAY.] A county agency must 
297.26  not delay a decision on eligibility or delay issuing the 
297.27  assistance payment except to establish state residence as 
297.28  provided in section 256J.12 by: 
297.29     (1) treating the 30-day processing period as a waiting 
297.30  period; 
297.31     (2) delaying approval or issuance of the assistance payment 
297.32  pending the decision of the county board; or 
297.33     (3) awaiting the result of a referral to a county agency in 
297.34  another county when the county receiving the application does 
297.35  not believe it is the county of financial responsibility. 
297.36     Sec. 36.  Minnesota Statutes 1997 Supplement, section 
298.1   256J.09, subdivision 9, is amended to read: 
298.2      Subd. 9.  [ADDENDUM TO AN EXISTING APPLICATION.] (a) An 
298.3   addendum to an existing application must be used to add persons 
298.4   to an assistance unit regardless of whether the persons being 
298.5   added are required to be in the assistance unit.  When a person 
298.6   is added by addendum to an assistance unit, eligibility for that 
298.7   person begins on the first of the month the addendum was filed 
298.8   except as provided in section 256J.74, subdivision 2, clause (1).
298.9      (b) An overpayment must be determined when a change in 
298.10  household composition is not reported within the deadlines in 
298.11  section 256J.30, subdivision 9.  Any overpayment must be 
298.12  calculated from the month of the change including the needs, 
298.13  income, and assets of any individual who is required to be 
298.14  included in the assistance unit under section 256J.24, 
298.15  subdivision 2.  Individuals not included in the assistance unit 
298.16  who are identified in section 256J.37, subdivisions 1 to 2, must 
298.17  have their income and assets considered when determining the 
298.18  amount of the overpayment. 
298.19     Sec. 37.  Minnesota Statutes 1997 Supplement, section 
298.20  256J.11, subdivision 2, as amended by Laws 1997, Third Special 
298.21  Session chapter 1, is amended to read: 
298.22     Subd. 2.  [NONCITIZENS; FOOD PORTION.] (a) For the period 
298.23  September 1, 1997, to October 31, 1997, noncitizens who do not 
298.24  meet one of the exemptions in section 412 of the Personal 
298.25  Responsibility and Work Opportunity Reconciliation Act of 1996, 
298.26  but were residing in this state as of July 1, 1997, are eligible 
298.27  for the 6/10 of the average value of food stamps for the same 
298.28  family size and composition until MFIP-S is operative in the 
298.29  noncitizen's county of financial responsibility and thereafter, 
298.30  the 6/10 of the food portion of MFIP-S.  However, federal food 
298.31  stamp dollars cannot be used to fund the food portion of MFIP-S 
298.32  benefits for an individual under this subdivision. 
298.33     (b) For the period November 1, 1997, to June 30, 1998 1999, 
298.34  noncitizens who do not meet one of the exemptions in section 412 
298.35  of the Personal Responsibility and Work Opportunity 
298.36  Reconciliation Act of 1996, but were residing in this state as 
299.1   of July 1, 1997, and are receiving cash assistance under the 
299.2   AFDC, family general assistance, MFIP or MFIP-S programs are 
299.3   eligible for the average value of food stamps for the same 
299.4   family size and composition until MFIP-S is operative in the 
299.5   noncitizen's county of financial responsibility and thereafter, 
299.6   the food portion of MFIP-S.  However, federal food stamp dollars 
299.7   cannot be used to fund the food portion of MFIP-S benefits for 
299.8   an individual under this subdivision.  The assistance provided 
299.9   under this subdivision, which is designated as a supplement to 
299.10  replace lost benefits under the federal food stamp program, must 
299.11  be disregarded as income in all programs that do not count food 
299.12  stamps as income where the commissioner has the authority to 
299.13  make the income disregard determination for the program. 
299.14     (c) The commissioner shall submit a state plan to the 
299.15  secretary of agriculture to allow the commissioner to purchase 
299.16  federal Food Stamp Program benefits in an amount equal to the 
299.17  MFIP-S food portion for each legal noncitizen receiving MFIP-S 
299.18  assistance who is ineligible to participate in the federal Food 
299.19  Stamp Program solely due to the provisions of section 402 or 403 
299.20  of Public Law Number 104-193, as authorized by Title VII of the 
299.21  1997 Emergency Supplemental Appropriations Act, Public Law 
299.22  Number 105-18.  The commissioner shall enter into a contract as 
299.23  necessary with the secretary to use the existing federal Food 
299.24  Stamp Program benefits delivery system for the purposes of 
299.25  administering the food portion of MFIP-S under this subdivision. 
299.26     Sec. 38.  Minnesota Statutes 1997 Supplement, section 
299.27  256J.12, is amended to read: 
299.28     256J.12 [MINNESOTA RESIDENCE.] 
299.29     Subdivision 1.  [SIMPLE RESIDENCY.] To be eligible for AFDC 
299.30  or MFIP-S, whichever is in effect, a family an assistance unit 
299.31  must have established residency in this state which means 
299.32  the family assistance unit is present in the state and intends 
299.33  to remain here.  A person who lives in this state and who 
299.34  entered this state with a job commitment or to seek employment 
299.35  in this state, whether or not that person is currently employed, 
299.36  meets the criteria in this subdivision.  
300.1      Subd. 1a.  [30-DAY RESIDENCY REQUIREMENT.] A family An 
300.2   assistance unit is considered to have established residency in 
300.3   this state only when a child or caregiver has resided in this 
300.4   state for at least 30 days with the intention of making the 
300.5   person's home here and not for any temporary purpose.  The birth 
300.6   of a child in Minnesota to a member of the assistance unit does 
300.7   not automatically establish the residency in this state under 
300.8   this subdivision of the other members of the assistance unit.  
300.9   Time spent in a shelter for battered women shall count toward 
300.10  satisfying the 30-day residency requirement. 
300.11     Subd. 2.  [EXCEPTIONS.] (a) A county shall waive the 30-day 
300.12  residency requirement where unusual hardship would result from 
300.13  denial of assistance. 
300.14     (b) For purposes of this section, unusual hardship means a 
300.15  family an assistance unit: 
300.16     (1) is without alternative shelter; or 
300.17     (2) is without available resources for food. 
300.18     (c) For purposes of this subdivision, the following 
300.19  definitions apply (1) "metropolitan statistical area" is as 
300.20  defined by the U.S. Census Bureau; (2) "alternative shelter" 
300.21  includes any shelter that is located within the metropolitan 
300.22  statistical area containing the county and for which the family 
300.23  is eligible, provided the family assistance unit does not have 
300.24  to travel more than 20 miles to reach the shelter and has access 
300.25  to transportation to the shelter.  Clause (2) does not apply to 
300.26  counties in the Minneapolis-St. Paul metropolitan statistical 
300.27  area. 
300.28     (d) Applicants are considered to meet the residency 
300.29  requirement under subdivision 1a if they once resided in 
300.30  Minnesota and: 
300.31     (1) joined the United States armed services, returned to 
300.32  Minnesota within 30 days of leaving the armed services, and 
300.33  intend to remain in Minnesota; or 
300.34     (2) left to attend school in another state, paid 
300.35  nonresident tuition or Minnesota tuition rates under a 
300.36  reciprocity agreement, and returned to Minnesota within 30 days 
301.1   of graduation with the intent to remain in Minnesota. 
301.2      (e) The 30-day residence requirement is met when: 
301.3      (1) a minor child or a minor caregiver moves from another 
301.4   state to the residence of a relative caregiver; 
301.5      (2) the minor caregiver applies for and receives family 
301.6   cash assistance; 
301.7      (3) the relative caregiver chooses not to be part of the 
301.8   MFIP-S assistance unit; and 
301.9      (4) the relative caregiver has resided in Minnesota for at 
301.10  least 30 days prior to the date the assistance unit applies for 
301.11  cash assistance.  
301.12     (f) Ineligible mandatory unit members who have resided in 
301.13  Minnesota for 12 months immediately before the unit's date of 
301.14  application establish the other assistance unit members' 
301.15  eligibility for the MFIP-S transitional standard. 
301.16     Subd. 2a.  [MIGRANT WORKERS.] Migrant workers, as defined 
301.17  in section 256J.08, and their immediate families are exempt from 
301.18  the requirements of subdivisions 1 and 1a, provided the migrant 
301.19  worker provides verification that the migrant family worked in 
301.20  this state within the last 12 months and earned at least $1,000 
301.21  in gross wages during the time the migrant worker worked in this 
301.22  state. 
301.23     Subd. 3.  [PAYMENT PLAN FOR NEW RESIDENTS.] Assistance paid 
301.24  to an eligible family assistance unit in which all members have 
301.25  resided in this state for fewer than 12 consecutive calendar 
301.26  months immediately preceding the date of application shall be at 
301.27  the standard and in the form specified in section 256J.43. 
301.28     Subd. 4.  [SEVERABILITY CLAUSE.] If any subdivision in this 
301.29  section is enjoined from implementation or found 
301.30  unconstitutional by any court of competent jurisdiction, the 
301.31  remaining subdivisions shall remain valid and shall be given 
301.32  full effect. 
301.33     Sec. 39.  Minnesota Statutes 1997 Supplement, section 
301.34  256J.14, is amended to read: 
301.35     256J.14 [ELIGIBILITY FOR PARENTING OR PREGNANT MINORS.] 
301.36     (a) The definitions in this paragraph only apply to this 
302.1   subdivision. 
302.2      (1) "Household of a parent, legal guardian, or other adult 
302.3   relative" means the place of residence of: 
302.4      (i) a natural or adoptive parent; 
302.5      (ii) a legal guardian according to appointment or 
302.6   acceptance under section 260.242, 525.615, or 525.6165, and 
302.7   related laws; or 
302.8      (iii) a caregiver as defined in section 256J.08, 
302.9   subdivision 11; or 
302.10     (iv) an appropriate adult relative designated by a county 
302.11  agency. 
302.12     (2) "Adult-supervised supportive living arrangement" means 
302.13  a private family setting which assumes responsibility for the 
302.14  care and control of the minor parent and minor child, or other 
302.15  living arrangement, not including a public institution, licensed 
302.16  by the commissioner of human services which ensures that the 
302.17  minor parent receives adult supervision and supportive services, 
302.18  such as counseling, guidance, independent living skills 
302.19  training, or supervision. 
302.20     (b) A minor parent and the minor child who is in the care 
302.21  of the minor parent must reside in the household of a parent, 
302.22  legal guardian, other appropriate adult relative, or other 
302.23  caregiver, or in an adult-supervised supportive living 
302.24  arrangement in order to receive MFIP-S unless: 
302.25     (1) the minor parent has no living parent, other 
302.26  appropriate adult relative, or legal guardian whose whereabouts 
302.27  is known; 
302.28     (2) no living parent, other appropriate adult relative, or 
302.29  legal guardian of the minor parent allows the minor parent to 
302.30  live in the parent's, appropriate other adult relative's, or 
302.31  legal guardian's home; 
302.32     (3) the minor parent lived apart from the minor parent's 
302.33  own parent or legal guardian for a period of at least one year 
302.34  before either the birth of the minor child or the minor parent's 
302.35  application for MFIP-S; 
302.36     (4) the physical or emotional health or safety of the minor 
303.1   parent or minor child would be jeopardized if the minor parent 
303.2   and the minor child resided in the same residence with the minor 
303.3   parent's parent, other appropriate adult relative, or legal 
303.4   guardian; or 
303.5      (5) an adult supervised supportive living arrangement is 
303.6   not available for the minor parent and the dependent child in 
303.7   the county in which the minor parent and child currently resides 
303.8   reside.  If an adult supervised supportive living arrangement 
303.9   becomes available within the county, the minor parent and child 
303.10  must reside in that arrangement. 
303.11     (c) Minor applicants must be informed orally and in writing 
303.12  about the eligibility requirements and their rights and 
303.13  obligations under the MFIP-S program.  The county must advise 
303.14  the minor of the possible exemptions and specifically ask 
303.15  whether one or more of these exemptions is applicable.  If the 
303.16  minor alleges one or more of these exemptions, then the county 
303.17  must assist the minor in obtaining the necessary verifications 
303.18  to determine whether or not these exemptions apply. 
303.19     (d) If the county worker has reason to suspect that the 
303.20  physical or emotional health or safety of the minor parent or 
303.21  minor child would be jeopardized if they resided with the minor 
303.22  parent's parent, other adult relative, or legal guardian, then 
303.23  the county worker must make a referral to child protective 
303.24  services to determine if paragraph (b), clause (4), applies.  A 
303.25  new determination by the county worker is not necessary if one 
303.26  has been made within the last six months, unless there has been 
303.27  a significant change in circumstances which justifies a new 
303.28  referral and determination. 
303.29     (e) If a minor parent is not living with a parent or, legal 
303.30  guardian, or other adult relative due to paragraph (b), clause 
303.31  (1), (2), or (4), the minor parent must reside, when possible, 
303.32  in a living arrangement that meets the standards of paragraph 
303.33  (a), clause (2). 
303.34     (f) When a minor parent and minor child live with another a 
303.35  parent, other adult relative, legal guardian, or in an 
303.36  adult-supervised supportive living arrangement, MFIP-S must be 
304.1   paid, when possible, in the form of a protective payment on 
304.2   behalf of the minor parent and minor child in accordance with 
304.3   according to section 256J.39, subdivisions 2 to 4. 
304.4      Sec. 40.  Minnesota Statutes 1997 Supplement, section 
304.5   256J.15, subdivision 2, is amended to read: 
304.6      Subd. 2.  [ELIGIBILITY DURING LABOR DISPUTES.] To receive 
304.7   assistance under MFIP-S, when a member of an assistance unit who 
304.8   is on strike, or when an individual identified under section 
304.9   256J.37, subdivisions 1 to 2, whose income and assets must be 
304.10  considered when determining the unit's eligibility is on strike, 
304.11  the assistance unit must have been an receiving MFIP-S 
304.12  participant on the day before the strike, or have been eligible 
304.13  for MFIP-S on the day before the strike. 
304.14     The county agency must count the striker's prestrike 
304.15  earnings as current earnings.  When A significant change cannot 
304.16  be invoked when a member of an assistance unit, or an individual 
304.17  identified under section 256J.37, subdivisions 1 to 2, is on 
304.18  strike.  A member of an assistance unit who, or an individual 
304.19  identified under section 256J.37, subdivisions 1 to 2, is not 
304.20  considered a striker when that person is not in the bargaining 
304.21  unit that voted for the strike and does not cross the picket 
304.22  line for fear of personal injury, the assistance unit member is 
304.23  not a striker.  Except for a member of an assistance unit who is 
304.24  not in the bargaining unit that voted for the strike and who 
304.25  does not cross the picket line for fear of personal injury, a 
304.26  significant change cannot be invoked as a result of a labor 
304.27  dispute. 
304.28     Sec. 41.  Minnesota Statutes 1997 Supplement, section 
304.29  256J.20, subdivision 2, is amended to read: 
304.30     Subd. 2.  [REAL PROPERTY LIMITATIONS.] Ownership of real 
304.31  property by an applicant or participant is subject to the 
304.32  limitations in paragraphs (a) and (b). 
304.33     (a) A county agency shall exclude the homestead of an 
304.34  applicant or participant according to clauses (1) to (4) (5): 
304.35     (1) an applicant or participant who is purchasing real 
304.36  property through a contract for deed and using that property as 
305.1   a home is considered the owner of real property; 
305.2      (2) the total amount of land that can be excluded under 
305.3   this subdivision is limited to surrounding property which is not 
305.4   separated from the home by intervening property owned by 
305.5   others.  Additional property must be assessed as to its legal 
305.6   and actual availability according to subdivision 1; 
305.7      (3) when real property that has been used as a home by a 
305.8   participant is sold, the county agency must treat the cash 
305.9   proceeds from the sale as excluded property for six months when 
305.10  the participant intends to reinvest the proceeds in another home 
305.11  and maintains those proceeds, unused for other purposes, in a 
305.12  separate account; and 
305.13     (4) when the homestead is jointly owned, but the client 
305.14  does not reside in it because of legal separation, pending 
305.15  divorce, or battering or abuse by the spouse or partner, the 
305.16  homestead is excluded.; and 
305.17     (5) the homestead shall continue to be excluded if it is 
305.18  temporarily unoccupied due to employment, illness, or as the 
305.19  result of compliance with a county-approved employability plan.  
305.20  The education, training, or job search must be within the state, 
305.21  but can be outside the immediate geographic area.  A homestead 
305.22  temporarily unoccupied because it is not habitable due to a 
305.23  casualty or natural disaster is excluded.  The homestead is 
305.24  excluded during periods only if the client intends to return to 
305.25  it. 
305.26     (b) The equity value of real property that is not excluded 
305.27  under paragraph (a) and which is legally available must be 
305.28  applied against the limits in subdivision 3.  When the equity 
305.29  value of the real property exceeds the limits under subdivision 
305.30  3, the applicant or participant may qualify to receive 
305.31  assistance when the applicant or participant continues to make a 
305.32  good faith effort to sell the property and signs a legally 
305.33  binding agreement to repay the amount of assistance, less child 
305.34  support collected by the agency.  Repayment must be made within 
305.35  five working days after the property is sold.  Repayment to the 
305.36  county agency must be in the amount of assistance received or 
306.1   the proceeds of the sale, whichever is less. 
306.2      Sec. 42.  Minnesota Statutes 1997 Supplement, section 
306.3   256J.20, subdivision 3, is amended to read: 
306.4      Subd. 3.  [OTHER PROPERTY LIMITATIONS.] To be eligible for 
306.5   MFIP-S, the equity value of all nonexcluded real and personal 
306.6   property of the assistance unit must not exceed $2,000 for 
306.7   applicants and $5,000 for ongoing recipients participants.  The 
306.8   value of assets in clauses (1) to (18) (20) must be excluded 
306.9   when determining the equity value of real and personal property: 
306.10     (1) a licensed vehicles vehicle up to a total market loan 
306.11  value of less than or equal to $7,500.  The county agency shall 
306.12  apply any excess market loan value as if it were equity value to 
306.13  the asset limit described in this section.  If the assistance 
306.14  unit owns more than one licensed vehicle, the county agency 
306.15  shall determine the vehicle with the highest market loan value 
306.16  and count only the market loan value over $7,500.  The county 
306.17  agency shall count the market loan value of all other vehicles 
306.18  and apply this amount as if it were equity value to the asset 
306.19  limit described in this section.  The value of special equipment 
306.20  for a handicapped member of the assistance unit is excluded.  To 
306.21  establish the market loan value of vehicles, a county agency 
306.22  must use the N.A.D.A. Official Used Car Guide, Midwest Edition, 
306.23  for newer model cars.  The N.A.D.A. Official Used Car Guide, 
306.24  Midwest Edition, is incorporated by reference.  When a vehicle 
306.25  is not listed in the guidebook, or when the applicant or 
306.26  participant disputes the loan value listed in the guidebook as 
306.27  unreasonable given the condition of the particular vehicle, the 
306.28  county agency may require the applicant or participant to 
306.29  document the loan value by securing a written statement from a 
306.30  motor vehicle dealer licensed under section 168.27, stating the 
306.31  amount that the dealer would pay to purchase the vehicle.  The 
306.32  county agency shall reimburse the applicant or participant for 
306.33  the cost of a written statement that documents a lower loan 
306.34  value; 
306.35     (2) the value of life insurance policies for members of the 
306.36  assistance unit; 
307.1      (3) one burial plot per member of an assistance unit; 
307.2      (4) the value of personal property needed to produce earned 
307.3   income, including tools, implements, farm animals, inventory, 
307.4   business loans, business checking and savings accounts used at 
307.5   least annually and used exclusively for the operation of a 
307.6   self-employment business, and any motor vehicles if the vehicles 
307.7   are essential for the self-employment business; 
307.8      (5) the value of personal property not otherwise specified 
307.9   which is commonly used by household members in day-to-day living 
307.10  such as clothing, necessary household furniture, equipment, and 
307.11  other basic maintenance items essential for daily living; 
307.12     (6) the value of real and personal property owned by a 
307.13  recipient of Supplemental Security Income or Minnesota 
307.14  supplemental aid; 
307.15     (7) the value of corrective payments, but only for the 
307.16  month in which the payment is received and for the following 
307.17  month; 
307.18     (8) a mobile home used by an applicant or participant as 
307.19  the applicant's or participant's home; 
307.20     (9) money in a separate escrow account that is needed to 
307.21  pay real estate taxes or insurance and that is used for this 
307.22  purpose; 
307.23     (10) money held in escrow to cover employee FICA, employee 
307.24  tax withholding, sales tax withholding, employee worker 
307.25  compensation, business insurance, property rental, property 
307.26  taxes, and other costs that are paid at least annually, but less 
307.27  often than monthly; 
307.28     (11) monthly assistance and, emergency assistance, and 
307.29  diversionary payments for the current month's needs; 
307.30     (12) the value of school loans, grants, or scholarships for 
307.31  the period they are intended to cover; 
307.32     (13) payments listed in section 256J.21, subdivision 2, 
307.33  clause (9), which are held in escrow for a period not to exceed 
307.34  three months to replace or repair personal or real property; 
307.35     (14) income received in a budget month through the end of 
307.36  the budget payment month; 
308.1      (15) savings from earned income of a minor child or a minor 
308.2   parent that are set aside in a separate account designated 
308.3   specifically for future education or employment costs; 
308.4      (16) the federal earned income tax credit and, Minnesota 
308.5   working family credit, state and federal income tax refunds, 
308.6   state homeowners and renters credits under chapter 290A, 
308.7   property tax rebates under Laws 1997, chapter 231, article 1, 
308.8   section 16, and other federal or state tax rebates in the month 
308.9   received and the following month; 
308.10     (17) payments excluded under federal law as long as those 
308.11  payments are held in a separate account from any nonexcluded 
308.12  funds; and 
308.13     (18) money received by a participant of the corps to career 
308.14  program under section 84.0887, subdivision 2, paragraph (b), as 
308.15  a postservice benefit under the federal Americorps Act; 
308.16     (19) the assets of children ineligible to receive MFIP-S 
308.17  benefits because foster care or adoption assistance payments are 
308.18  made on their behalf; and 
308.19     (20) the assets of persons whose income is excluded under 
308.20  section 256J.21, subdivision 2, clause 43. 
308.21     Sec. 43.  Minnesota Statutes 1997 Supplement, section 
308.22  256J.21, is amended to read: 
308.23     256J.21 [INCOME LIMITATIONS.] 
308.24     Subdivision 1.  [INCOME INCLUSIONS.] To determine MFIP-S 
308.25  eligibility, the county agency must evaluate income received by 
308.26  members of an assistance unit, or by other persons whose income 
308.27  is considered available to the assistance unit, and only count 
308.28  income that is available to the member of the assistance unit.  
308.29  Income is available if the individual has legal access to the 
308.30  income.  All payments, unless specifically excluded in 
308.31  subdivision 2, must be counted as income. 
308.32     Subd. 2.  [INCOME EXCLUSIONS.] (a) The following must be 
308.33  excluded in determining a family's available income: 
308.34     (1) payments for basic care, difficulty of care, and 
308.35  clothing allowances received for providing family foster care to 
308.36  children or adults under Minnesota Rules, parts 9545.0010 to 
309.1   9545.0260 and 9555.5050 to 9555.6265, and payments received and 
309.2   used for care and maintenance of a third-party beneficiary who 
309.3   is not a household member; 
309.4      (2) reimbursements for employment training received through 
309.5   the Job Training Partnership Act, United States Code, title 29, 
309.6   chapter 19, sections 1501 to 1792b; 
309.7      (3) reimbursement for out-of-pocket expenses incurred while 
309.8   performing volunteer services, jury duty, or employment; 
309.9      (4) all educational assistance, except the county agency 
309.10  must count graduate student teaching assistantships, 
309.11  fellowships, and other similar paid work as earned income and, 
309.12  after allowing deductions for any unmet and necessary 
309.13  educational expenses, shall count scholarships or grants awarded 
309.14  to graduate students that do not require teaching or research as 
309.15  unearned income; 
309.16     (5) loans, regardless of purpose, from public or private 
309.17  lending institutions, governmental lending institutions, or 
309.18  governmental agencies; 
309.19     (6) loans from private individuals, regardless of purpose, 
309.20  provided an applicant or participant documents that the lender 
309.21  expects repayment; 
309.22     (7)(i) state and federal income tax refunds; and 
309.23     (ii) federal income tax refunds; 
309.24     (8)(i) state and federal earned income credits; 
309.25     (ii) Minnesota working family credits; 
309.26     (iii) state homeowners and renters credits under chapter 
309.27  290A; 
309.28     (iv) property tax rebates under Laws 1997, chapter 231, 
309.29  article 1, section 16; and 
309.30     (v) other federal or state tax rebates; 
309.31     (9) funds received for reimbursement, replacement, or 
309.32  rebate of personal or real property when these payments are made 
309.33  by public agencies, awarded by a court, solicited through public 
309.34  appeal, or made as a grant by a federal agency, state or local 
309.35  government, or disaster assistance organizations, subsequent to 
309.36  a presidential declaration of disaster; 
310.1      (10) the portion of an insurance settlement that is used to 
310.2   pay medical, funeral, and burial expenses, or to repair or 
310.3   replace insured property; 
310.4      (11) reimbursements for medical expenses that cannot be 
310.5   paid by medical assistance; 
310.6      (12) payments by a vocational rehabilitation program 
310.7   administered by the state under chapter 268A, except those 
310.8   payments that are for current living expenses; 
310.9      (13) in-kind income, including any payments directly made 
310.10  by a third party to a provider of goods and services; 
310.11     (14) assistance payments to correct underpayments, but only 
310.12  for the month in which the payment is received; 
310.13     (15) emergency assistance payments; 
310.14     (16) funeral and cemetery payments as provided by section 
310.15  256.935; 
310.16     (17) nonrecurring cash gifts of $30 or less, not exceeding 
310.17  $30 per participant in a calendar month; 
310.18     (18) any form of energy assistance payment made through 
310.19  Public Law Number 97-35, Low-Income Home Energy Assistance Act 
310.20  of 1981, payments made directly to energy providers by other 
310.21  public and private agencies, and any form of credit or rebate 
310.22  payment issued by energy providers; 
310.23     (19) Supplemental Security Income, including retroactive 
310.24  payments; 
310.25     (20) Minnesota supplemental aid, including retroactive 
310.26  payments; 
310.27     (21) proceeds from the sale of real or personal property; 
310.28     (22) adoption assistance payments under section 259.67; 
310.29     (23) state-funded family subsidy program payments made 
310.30  under section 252.32 to help families care for children with 
310.31  mental retardation or related conditions; 
310.32     (24) interest payments and dividends from property that is 
310.33  not excluded from and that does not exceed the asset limit; 
310.34     (25) rent rebates; 
310.35     (26) income earned by a minor caregiver or minor child who 
310.36  is at least a half-time student in an approved secondary 
311.1   education program; 
311.2      (27) income earned by a caregiver under age 20 who is at 
311.3   least a half-time student in an approved secondary education 
311.4   program; 
311.5      (28) MFIP-S child care payments under section 119B.05; 
311.6      (29) all other payments made through MFIP-S to support a 
311.7   caregiver's pursuit of greater self-support; 
311.8      (30) income a participant receives related to shared living 
311.9   expenses; 
311.10     (31) reverse mortgages; 
311.11     (32) benefits provided by the Child Nutrition Act of 1966, 
311.12  United States Code, title 42, chapter 13A, sections 1771 to 
311.13  1790; 
311.14     (33) benefits provided by the women, infants, and children 
311.15  (WIC) nutrition program, United States Code, title 42, chapter 
311.16  13A, section 1786; 
311.17     (34) benefits from the National School Lunch Act, United 
311.18  States Code, title 42, chapter 13, sections 1751 to 1769e; 
311.19     (35) relocation assistance for displaced persons under the 
311.20  Uniform Relocation Assistance and Real Property Acquisition 
311.21  Policies Act of 1970, United States Code, title 42, chapter 61, 
311.22  subchapter II, section 4636, or the National Housing Act, United 
311.23  States Code, title 12, chapter 13, sections 1701 to 1750jj; 
311.24     (36) benefits from the Trade Act of 1974, United States 
311.25  Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
311.26     (37) war reparations payments to Japanese Americans and 
311.27  Aleuts under United States Code, title 50, sections 1989 to 
311.28  1989d; 
311.29     (38) payments to veterans or their dependents as a result 
311.30  of legal settlements regarding Agent Orange or other chemical 
311.31  exposure under Public Law Number 101-239, section 10405, 
311.32  paragraph (a)(2)(E); 
311.33     (39) income that is otherwise specifically excluded from 
311.34  the MFIP-S program consideration in federal law, state law, or 
311.35  federal regulation; 
311.36     (40) security and utility deposit refunds; 
312.1      (41) American Indian tribal land settlements excluded under 
312.2   Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 
312.3   Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
312.4   reservations and payments to members of the White Earth Band, 
312.5   under United States Code, title 25, chapter 9, section 331, and 
312.6   chapter 16, section 1407; 
312.7      (42) all income of the minor parent's parent and stepparent 
312.8   when determining the grant for the minor parent in households 
312.9   that include a minor parent living with a parent or stepparent 
312.10  on MFIP-S with other dependent children; and 
312.11     (43) income of the minor parent's parent and stepparent 
312.12  equal to 200 percent of the federal poverty guideline for a 
312.13  family size not including the minor parent and the minor 
312.14  parent's child in households that include a minor parent living 
312.15  with a parent or stepparent not on MFIP-S when determining the 
312.16  grant for the minor parent.  The remainder of income is deemed 
312.17  as specified in section 256J.37, subdivision 1 1b; 
312.18     (44) payments made to children eligible for relative 
312.19  custody assistance under section 257.85; 
312.20     (45) vendor payments for goods and services made on behalf 
312.21  of a client unless the client has the option of receiving the 
312.22  payment in cash; and 
312.23     (46) the principal portion of a contract for deed payment. 
312.24     Subd. 3.  [INITIAL INCOME TEST.] The county agency shall 
312.25  determine initial eligibility by considering all earned and 
312.26  unearned income that is not excluded under subdivision 2.  To be 
312.27  eligible for MFIP-S, the assistance unit's countable income 
312.28  minus the disregards in paragraphs (a) and (b) must be below the 
312.29  transitional standard of assistance according to section 256J.24 
312.30  for that size assistance unit. 
312.31     (a) The initial eligibility determination must disregard 
312.32  the following items: 
312.33     (1) the employment disregard is 18 percent of the gross 
312.34  earned income whether or not the member is working full time or 
312.35  part time; 
312.36     (2) dependent care costs must be deducted from gross earned 
313.1   income for the actual amount paid for dependent care up to the a 
313.2   maximum disregard allowed of $200 per month for each child less 
313.3   than two years of age, and $175 per month for each child two 
313.4   years of age and older under this chapter and chapter 119B; and 
313.5      (3) all payments made according to a court order 
313.6   for spousal support or the support of children not living in the 
313.7   assistance unit's household shall be disregarded from the income 
313.8   of the person with the legal obligation to pay support, provided 
313.9   that, if there has been a change in the financial circumstances 
313.10  of the person with the legal obligation to pay support since the 
313.11  support order was entered, the person with the legal obligation 
313.12  to pay support has petitioned for a modification of the support 
313.13  order; and 
313.14     (4) an allocation for the unmet need of an ineligible 
313.15  spouse or an ineligible child under the age of 21 for whom the 
313.16  caregiver is financially responsible and who lives with the 
313.17  caregiver according to section 256J.36. 
313.18     (b) Notwithstanding paragraph (a), when determining initial 
313.19  eligibility for applicants who have applicant units when at 
313.20  least one member has received AFDC, family general assistance, 
313.21  MFIP, MFIP-R, work first, or MFIP-S in this state within four 
313.22  months of the most recent application for MFIP-S, the employment 
313.23  disregard for all unit members is 36 percent of the gross earned 
313.24  income. 
313.25     After initial eligibility is established, the assistance 
313.26  payment calculation is based on the monthly income test. 
313.27     Subd. 4.  [MONTHLY INCOME TEST AND DETERMINATION OF 
313.28  ASSISTANCE PAYMENT.] The county agency shall determine ongoing 
313.29  eligibility and the assistance payment amount according to the 
313.30  monthly income test.  To be eligible for MFIP-S, the result of 
313.31  the computations in paragraphs (a) to (e) must be at least $1. 
313.32     (a) Apply a 36 percent income disregard to gross earnings 
313.33  and subtract this amount from the family wage level.  If the 
313.34  difference is equal to or greater than the transitional 
313.35  standard, the assistance payment is equal to the transitional 
313.36  standard.  If the difference is less than the transitional 
314.1   standard, the assistance payment is equal to the difference.  
314.2   The employment disregard in this paragraph must be deducted 
314.3   every month there is earned income. 
314.4      (b) All payments made according to a court order 
314.5   for spousal support or the support of children not living in the 
314.6   assistance unit's household must be disregarded from the income 
314.7   of the person with the legal obligation to pay support, provided 
314.8   that, if there has been a change in the financial circumstances 
314.9   of the person with the legal obligation to pay support since the 
314.10  support order was entered, the person with the legal obligation 
314.11  to pay support has petitioned for a modification of the court 
314.12  order. 
314.13     (c) An allocation for the unmet need of an ineligible 
314.14  spouse or an ineligible child under the age of 21 for whom the 
314.15  caregiver is financially responsible and who lives with the 
314.16  caregiver must be made according to section 256J.36. 
314.17     (d) Subtract unearned income dollar for dollar from the 
314.18  transitional standard to determine the assistance payment amount.
314.19     (d) (e) When income is both earned and unearned, the amount 
314.20  of the assistance payment must be determined by first treating 
314.21  gross earned income as specified in paragraph (a).  After 
314.22  determining the amount of the assistance payment under paragraph 
314.23  (a), unearned income must be subtracted from that amount dollar 
314.24  for dollar to determine the assistance payment amount. 
314.25     (e) (f) When the monthly income is greater than the 
314.26  transitional or family wage level standard after applicable 
314.27  deductions and the income will only exceed the standard for one 
314.28  month, the county agency must suspend the assistance payment for 
314.29  the payment month. 
314.30     Subd. 5.  [DISTRIBUTION OF INCOME.] The income of all 
314.31  members of the assistance unit must be counted.  Income may also 
314.32  be deemed from ineligible persons to the assistance unit.  
314.33  Income must be attributed to the person who earns it or to the 
314.34  assistance unit according to paragraphs (a) to (c). 
314.35     (a) Funds distributed from a trust, whether from the 
314.36  principal holdings or sale of trust property or from the 
315.1   interest and other earnings of the trust holdings, must be 
315.2   considered income when the income is legally available to an 
315.3   applicant or participant.  Trusts are presumed legally available 
315.4   unless an applicant or participant can document that the trust 
315.5   is not legally available. 
315.6      (b) Income from jointly owned property must be divided 
315.7   equally among property owners unless the terms of ownership 
315.8   provide for a different distribution. 
315.9      (c) Deductions are not allowed from the gross income of a 
315.10  financially responsible household member or by the members of an 
315.11  assistance unit to meet a current or prior debt. 
315.12     Sec. 44.  Minnesota Statutes 1997 Supplement, section 
315.13  256J.24, subdivision 1, is amended to read: 
315.14     Subdivision 1.  [MFIP-S ASSISTANCE UNIT.] An MFIP-S 
315.15  assistance unit is either a group of individuals with at least 
315.16  one minor child who live together whose needs, assets, and 
315.17  income are considered together and who receive MFIP-S 
315.18  assistance, or a pregnant woman and her spouse who receives 
315.19  receive MFIP-S assistance.  
315.20     Individuals identified in subdivision 2 must be included in 
315.21  the MFIP-S assistance unit.  Individuals identified in 
315.22  subdivision 3 must be excluded from the assistance unit are 
315.23  ineligible to receive MFIP-S.  Individuals identified in 
315.24  subdivision 4 may be included in the assistance unit at their 
315.25  option.  Individuals not included in the assistance unit who are 
315.26  identified in section 256J.37, subdivision subdivisions 1 or to 
315.27  2, must have their income and assets considered when determining 
315.28  eligibility and benefits for an MFIP-S assistance unit.  All 
315.29  assistance unit members, whether mandatory or elective, who live 
315.30  together and for whom one caregiver or two caregivers apply must 
315.31  be included in a single assistance unit. 
315.32     Sec. 45.  Minnesota Statutes 1997 Supplement, section 
315.33  256J.24, subdivision 2, is amended to read: 
315.34     Subd. 2.  [MANDATORY ASSISTANCE UNIT COMPOSITION.] Except 
315.35  for minor caregivers and their children who are must be in a 
315.36  separate assistance unit from the other persons in the 
316.1   household, when the following individuals live together, they 
316.2   must be included in the assistance unit: 
316.3      (1) a minor child, including a pregnant minor; 
316.4      (2) the minor child's siblings, half-siblings, and 
316.5   step-siblings; and 
316.6      (3) the minor child's natural, adoptive parents, and 
316.7   stepparents; and 
316.8      (4) the spouse of a pregnant woman.  
316.9      Sec. 46.  Minnesota Statutes 1997 Supplement, section 
316.10  256J.24, subdivision 3, is amended to read: 
316.11     Subd. 3.  [INDIVIDUALS WHO MUST BE EXCLUDED FROM AN 
316.12  ASSISTANCE UNIT.] (a) The following individuals must be excluded 
316.13  from an assistance unit who are part of the assistance unit 
316.14  determined under subdivision 2 are ineligible to receive MFIP-S: 
316.15     (1) individuals receiving Supplemental Security Income or 
316.16  Minnesota supplemental aid; 
316.17     (2) individuals living at home while performing 
316.18  court-imposed, unpaid community service work due to a criminal 
316.19  conviction; 
316.20     (3) individuals disqualified from the food stamp program or 
316.21  MFIP-S, until the disqualification ends; 
316.22     (4) children on whose behalf federal, state or local foster 
316.23  care payments under title IV-E of the Social Security Act are 
316.24  made, except as provided in section sections 256J.13, 
316.25  subdivision 2, and 256J.74, subdivision 2; and 
316.26     (5) children receiving ongoing monthly adoption assistance 
316.27  payments under section 269.67 259.67.  
316.28     (b) The exclusion of a person under this subdivision does 
316.29  not alter the mandatory assistance unit composition. 
316.30     Sec. 47.  Minnesota Statutes 1997 Supplement, section 
316.31  256J.24, subdivision 4, is amended to read: 
316.32     Subd. 4.  [INDIVIDUALS WHO MAY ELECT TO BE INCLUDED IN THE 
316.33  ASSISTANCE UNIT.] (a) The minor child's eligible caregiver may 
316.34  choose to be in the assistance unit, if the caregiver is not 
316.35  required to be in the assistance unit under subdivision 2.  If 
316.36  the relative eligible caregiver chooses to be in the assistance 
317.1   unit, that person's spouse must also be in the unit. 
317.2      (b) Any minor child not related as a sibling, stepsibling, 
317.3   or adopted sibling to the minor child in the unit, but for whom 
317.4   there is an eligible caregiver may elect to be in the unit. 
317.5      (c) A foster care provider of a minor child who is 
317.6   receiving federal, state, or local foster care maintenance 
317.7   payments may elect to receive MFIP-S if the provider meets the 
317.8   definition of caregiver under section 256J.08, subdivision 11.  
317.9   If the provider chooses to receive MFIP-S, the spouse of the 
317.10  provider must also be included in the assistance unit with the 
317.11  provider.  The provider and spouse are eligible for assistance 
317.12  even if the only minor child living in the provider's home is 
317.13  receiving foster care maintenance payments. 
317.14     (d) The adult caregiver or caregivers of a minor parent are 
317.15  eligible to be a separate assistance unit from the minor parent 
317.16  and the minor parent's child when: 
317.17     (1) the adult caregiver or caregivers have no other minor 
317.18  children in the household; 
317.19     (2) the minor parent and the minor parent's child are 
317.20  living together with the adult caregiver or caregivers; and 
317.21     (3) the minor parent and the minor parent's child receive 
317.22  MFIP-S, or would be eligible to receive MFIP-S, if they were not 
317.23  receiving SSI benefits. 
317.24     Sec. 48.  Minnesota Statutes 1997 Supplement, section 
317.25  256J.24, is amended by adding a subdivision to read: 
317.26     Subd. 5a.  [FOOD PORTION OF MFIP-S TRANSITIONAL 
317.27  STANDARD.] The commissioner shall adjust the food portion of the 
317.28  MFIP-S transitional standard by October 1 each year beginning 
317.29  October 1998 to reflect the cost-of-living adjustments to the 
317.30  Food Stamp Program.  The commissioner shall annually publish in 
317.31  the State Register the transitional standard for an assistance 
317.32  unit of sizes 1 to 10. 
317.33     Sec. 49.  Minnesota Statutes 1997 Supplement, section 
317.34  256J.24, subdivision 7, is amended to read: 
317.35     Subd. 7.  [FAMILY WAGE LEVEL STANDARD.] The family wage 
317.36  level standard is 110 percent of the transitional standard under 
318.1   subdivision 5 and is the standard used when there is earned 
318.2   income in the assistance unit.  As specified in section 256J.21, 
318.3   earned income is subtracted from the family wage level to 
318.4   determine the amount of the assistance payment.  Assistance 
318.5   payments may not exceed the shared household standard or the 
318.6   transitional standard for the assistance unit, whichever is less.
318.7      Sec. 50.  Minnesota Statutes 1997 Supplement, section 
318.8   256J.24, is amended by adding a subdivision to read: 
318.9      Subd. 8.  [ASSISTANCE PAID TO ELIGIBLE ASSISTANCE 
318.10  UNITS.] Payments for shelter up to the amount of the cash 
318.11  portion of MFIP-S benefits for which the assistance unit is 
318.12  eligible shall be vendor paid for as many months as the 
318.13  assistance unit is eligible or six months, whichever comes 
318.14  first.  The residual amount of the grant after vendor payment, 
318.15  if any, must be paid to the MFIP-S caregiver. 
318.16     Sec. 51.  Minnesota Statutes 1997 Supplement, section 
318.17  256J.24, is amended by adding a subdivision to read: 
318.18     Subd. 9.  [SHARED HOUSEHOLD STANDARD; MFIP-S.] (a) Except 
318.19  as prohibited in paragraph (b), the county agency must use the 
318.20  shared household standard when the household includes one or 
318.21  more unrelated members, as that term is defined in section 
318.22  256J.08, subdivision 86a.  The county agency must use the shared 
318.23  household standard, unless a member of the assistance unit is a 
318.24  victim of domestic violence and has an approved safety plan, 
318.25  regardless of the number of unrelated members in the household. 
318.26     (b) The county agency must not use the shared household 
318.27  standard when all unrelated members are one of the following: 
318.28     (1) a recipient of public assistance benefits, including 
318.29  food stamps, Supplemental Security Income, adoption assistance, 
318.30  relative custody assistance, or foster care payments; 
318.31     (2) a roomer or boarder, or a person to whom the assistance 
318.32  unit is paying room or board; 
318.33     (3) a minor; 
318.34     (4) a minor caregiver living with the minor caregiver's 
318.35  parents or in an approved supervised living arrangement; or 
318.36     (5) a caregiver who is not the parent of the minor child in 
319.1   the assistance unit. 
319.2      (c) The shared household standard must be discontinued if 
319.3   it is not approved by the United States Department of 
319.4   Agriculture under the MFIP-S waiver. 
319.5      Sec. 52.  Minnesota Statutes 1997 Supplement, section 
319.6   256J.26, subdivision 1, is amended to read: 
319.7      Subdivision 1.  [PERSON CONVICTED OF DRUG OFFENSES.] (a) 
319.8   Applicants or recipients participants who have been convicted of 
319.9   a drug offense after July 1, 1997, may, if otherwise eligible, 
319.10  receive AFDC or MFIP-S benefits subject to the following 
319.11  conditions: 
319.12     (1) Benefits for the entire assistance unit must be paid in 
319.13  vendor form for shelter and utilities during any time the 
319.14  applicant is part of the assistance unit;. 
319.15     (2) The convicted applicant or recipient participant shall 
319.16  be subject to random drug testing as a condition of continued 
319.17  eligibility and is subject to sanctions under section 256J.46 
319.18  following any positive test for an illegal controlled substance, 
319.19  except that the grant must continue to be vendor paid under 
319.20  clause (1).  
319.21     For purposes of this subdivision, section 256J.46 is 
319.22  effective July 1, 1997. 
319.23     This subdivision also applies to persons who receive food 
319.24  stamps under section 115 of the Personal Responsibility and Work 
319.25  Opportunity Reconciliation Act of 1996. is subject to the 
319.26  following sanctions: 
319.27     (i) for failing a drug test the first time, the 
319.28  participant's grant shall be reduced by ten percent of the 
319.29  MFIP-S transitional standard, the shared household standard, or 
319.30  the interstate transitional standard, whichever is applicable 
319.31  prior to making vendor payments for shelter and utility costs; 
319.32  or 
319.33     (ii) for failing a drug test two or more times, the 
319.34  residual amount of the participant's grant after making vendor 
319.35  payments for shelter and utility costs, if any, must be reduced 
319.36  by an amount equal to 30 percent of the MFIP-S transitional 
320.1   standard, the shared household standard, or the interstate 
320.2   transitional standard, whichever is applicable. 
320.3      (b) Applicants or participants who have been convicted of a 
320.4   drug offense after July 1, 1997, may, if otherwise eligible, 
320.5   receive food stamps if the convicted applicant or participant is 
320.6   subject to random drug testing as a condition of continued 
320.7   eligibility.  Following a positive test for an illegal 
320.8   controlled substance, the applicant is subject to the following 
320.9   sanctions: 
320.10     (1) for failing a drug test the first time, food stamps 
320.11  shall be reduced by ten percent of the applicable food stamp 
320.12  allotment; and 
320.13     (2) for failing a drug test two or more times, food stamps 
320.14  shall be reduced by an amount equal to 30 percent of the 
320.15  applicable food stamp allotment.  
320.16     (b) (c) For the purposes of this subdivision, "drug offense"
320.17  means a conviction that occurred after July 1, 1997, of sections 
320.18  152.021 to 152.025, 152.0261, or 152.096.  Drug offense also 
320.19  means a conviction in another jurisdiction of the possession, 
320.20  use, or distribution of a controlled substance, or conspiracy to 
320.21  commit any of these offenses, if the offense occurred after July 
320.22  1, 1997, and the conviction is a felony offense in that 
320.23  jurisdiction, or in the case of New Jersey, a high misdemeanor. 
320.24     Sec. 53.  Minnesota Statutes 1997 Supplement, section 
320.25  256J.26, subdivision 2, is amended to read: 
320.26     Subd. 2.  [PAROLE VIOLATORS.] An individual violating a 
320.27  condition of probation or parole or supervised release imposed 
320.28  under federal law or the law of any state is ineligible to 
320.29  receive disqualified from receiving AFDC or MFIP-S. 
320.30     Sec. 54.  Minnesota Statutes 1997 Supplement, section 
320.31  256J.26, subdivision 3, is amended to read: 
320.32     Subd. 3.  [FLEEING FELONS.] An individual who is fleeing to 
320.33  avoid prosecution, or custody, or confinement after conviction 
320.34  for a crime that is a felony under the laws of the jurisdiction 
320.35  from which the individual flees, or in the case of New Jersey, 
320.36  is a high misdemeanor, is ineligible to receive disqualified 
321.1   from receiving AFDC or MFIP-S. 
321.2      Sec. 55.  Minnesota Statutes 1997 Supplement, section 
321.3   256J.26, subdivision 4, is amended to read: 
321.4      Subd. 4.  [DENIAL OF ASSISTANCE FOR TEN YEARS TO A PERSON 
321.5   FOUND TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCY.] An 
321.6   individual who is convicted in federal or state court of having 
321.7   made a fraudulent statement or representation with respect to 
321.8   the place of residence of the individual in order to receive 
321.9   assistance simultaneously from two or more states is ineligible 
321.10  to receive disqualified from receiving AFDC or MFIP-S for ten 
321.11  years beginning on the date of the conviction. 
321.12     Sec. 56.  Minnesota Statutes 1997 Supplement, section 
321.13  256J.28, subdivision 1, is amended to read: 
321.14     Subdivision 1.  [EXPEDITED ISSUANCE OF FOOD STAMP 
321.15  ASSISTANCE.] The following households are entitled to expedited 
321.16  issuance of food stamp assistance: 
321.17     (1) households with less than $150 in monthly gross income 
321.18  provided their liquid assets do not exceed $100; 
321.19     (2) migrant or seasonal farm worker households who are 
321.20  destitute as defined in Code of Federal Regulations, title 7, 
321.21  subtitle B, chapter 2, subchapter C, part 273, section 273.10, 
321.22  paragraph (e)(3), provided their liquid assets do not exceed 
321.23  $100; and 
321.24     (3) eligible households whose combined monthly gross income 
321.25  and liquid resources are less than the household's monthly rent 
321.26  or mortgage and utilities. 
321.27     The benefits issued through expedited issuance of food 
321.28  stamp assistance must be deducted from the amount of the full 
321.29  monthly MFIP-S assistance payment and a supplemental payment for 
321.30  the difference must be issued. For any month an individual 
321.31  receives expedited Food Stamp Program benefits, the individual 
321.32  is not eligible for the MFIP-S food portion of assistance. 
321.33     Sec. 57.  Minnesota Statutes 1997 Supplement, section 
321.34  256J.28, subdivision 2, is amended to read: 
321.35     Subd. 2.  [FOOD STAMPS FOR HOUSEHOLD MEMBERS NOT IN THE 
321.36  ASSISTANCE UNIT.] (a) For household members who purchase and 
322.1   prepare food with the MFIP-S assistance unit but are not part of 
322.2   the assistance unit, the county agency must determine a separate 
322.3   food stamp benefit based on regulations agreed upon with the 
322.4   United States Department of Agriculture. 
322.5      (b) This subdivision does not apply to optional members who 
322.6   have chosen not to be in the assistance unit. 
322.7      (c) (b) Fair hearing requirements for persons who receive 
322.8   food stamps under this subdivision are governed by section 
322.9   256.045, and Code of Federal Regulations, title 7, subtitle B, 
322.10  chapter II, part 273, section 273.15. 
322.11     Sec. 58.  Minnesota Statutes 1997 Supplement, section 
322.12  256J.28, is amended by adding a subdivision to read: 
322.13     Subd. 5.  [FOOD STAMPS FOR PERSONS RESIDING IN A BATTERED 
322.14  WOMAN'S SHELTER.] Members of an MFIP-S assistance unit residing 
322.15  in a battered woman's shelter may receive food stamps or the 
322.16  food portion twice in a month if the unit that initially 
322.17  received the food stamps or food portion included the alleged 
322.18  abuser. 
322.19     Sec. 59.  Minnesota Statutes 1997 Supplement, section 
322.20  256J.30, subdivision 10, is amended to read: 
322.21     Subd. 10.  [COOPERATION WITH HEALTH CARE BENEFITS.] (a) The 
322.22  caregiver of a minor child must cooperate with the county agency 
322.23  to identify and provide information to assist the county agency 
322.24  in pursuing third-party liability for medical services. 
322.25     (b) A caregiver must assign to the department any rights to 
322.26  health insurance policy benefits the caregiver has during the 
322.27  period of MFIP-S eligibility. 
322.28     (c) A caregiver must identify any third party who may be 
322.29  liable for care and services available under the medical 
322.30  assistance program on behalf of the applicant or participant and 
322.31  all other assistance unit members. 
322.32     (d) When a participant refuses to identify any third party 
322.33  who may be liable for care and services, the recipient must be 
322.34  sanctioned as provided in section 256J.46, subdivision 1.  The 
322.35  recipient is also ineligible for medical assistance for a 
322.36  minimum of one month and until the recipient cooperates with the 
323.1   requirements of this subdivision. 
323.2      Sec. 60.  Minnesota Statutes 1997 Supplement, section 
323.3   256J.30, subdivision 11, is amended to read: 
323.4      Subd. 11.  [REQUIREMENT TO ASSIGN SUPPORT AND MAINTENANCE 
323.5   RIGHTS.] To be eligible An assistance unit is ineligible for 
323.6   MFIP-S, unless the caregiver must assign assigns all rights to 
323.7   child support and spousal maintenance benefits according 
323.8   to sections 256.74, subdivision 5, and section 256.741, if 
323.9   enacted. 
323.10     Sec. 61.  Minnesota Statutes 1997 Supplement, section 
323.11  256J.31, subdivision 5, is amended to read: 
323.12     Subd. 5.  [MAILING OF NOTICE.] The notice of adverse action 
323.13  shall be issued according to paragraphs (a) to (c). 
323.14     (a) A county agency shall mail a notice of adverse action 
323.15  at least ten days before the effective date of the adverse 
323.16  action, except as provided in paragraphs (b) and (c). 
323.17     (b) A county agency must mail a notice of adverse action at 
323.18  least five days before the effective date of the adverse action 
323.19  when the county agency has factual information that requires an 
323.20  action to reduce, suspend, or terminate assistance based on 
323.21  probable fraud. 
323.22     (c) A county agency shall mail a notice of adverse action 
323.23  before or on the effective date of the adverse action when the 
323.24  county agency: 
323.25     (1) receives the caregiver's signed monthly MFIP-S 
323.26  household report form that includes information that requires 
323.27  payment reduction, suspension, or termination; 
323.28     (2) is informed of the death of a participant or the payee; 
323.29     (3) receives a signed statement from the caregiver that 
323.30  assistance is no longer wanted; 
323.31     (4) receives a signed statement from the caregiver that 
323.32  provides information that requires the termination or reduction 
323.33  of assistance; 
323.34     (5) verifies that a member of the assistance unit is absent 
323.35  from the home and does not meet temporary absence provisions in 
323.36  section 256J.13; 
324.1      (6) verifies that a member of the assistance unit has 
324.2   entered a regional treatment center or a licensed residential 
324.3   facility for medical or psychological treatment or 
324.4   rehabilitation; 
324.5      (7) verifies that a member of an assistance unit has been 
324.6   placed in foster care, and the provisions of section 256J.13, 
324.7   subdivision 2, paragraph (b) (c), clause (2), do not apply; 
324.8      (8) verifies that a member of an assistance unit has been 
324.9   approved to receive assistance by another state; or 
324.10     (9) cannot locate a caregiver. 
324.11     Sec. 62.  Minnesota Statutes 1997 Supplement, section 
324.12  256J.31, subdivision 10, is amended to read: 
324.13     Subd. 10.  [PROTECTION FROM GARNISHMENT.] MFIP-S grants or 
324.14  earnings of a caregiver while participating in full or part-time 
324.15  employment or training shall be protected from garnishment.  
324.16  This protection for earnings shall extend for a period of six 
324.17  months from the date of termination from MFIP-S. 
324.18     Sec. 63.  Minnesota Statutes 1997 Supplement, section 
324.19  256J.31, is amended by adding a subdivision to read: 
324.20     Subd. 12.  [RIGHT TO DISCONTINUE CASH ASSISTANCE.] A 
324.21  participant may discontinue receipt of the cash assistance 
324.22  portion of MFIP-S assistance and retain eligibility for child 
324.23  care assistance under section 119B.05 and for medical assistance 
324.24  under sections 256B.055, subdivision 3a, and 256B.0635. 
324.25     Sec. 64.  Minnesota Statutes 1997 Supplement, section 
324.26  256J.32, subdivision 4, is amended to read: 
324.27     Subd. 4.  [FACTORS TO BE VERIFIED.] The county agency shall 
324.28  verify the following at application: 
324.29     (1) identity of adults; 
324.30     (2) presence of the minor child in the home, if 
324.31  questionable; 
324.32     (3) relationship of a minor child to caregivers in the 
324.33  assistance unit; 
324.34     (4) age, if necessary to determine MFIP-S eligibility; 
324.35     (5) immigration status; 
324.36     (6) social security number in accordance with according to 
325.1   the requirements of section 256J.30, subdivision 12; 
325.2      (7) income; 
325.3      (8) self-employment expenses used as a deduction; 
325.4      (9) source and purpose of deposits and withdrawals from 
325.5   business accounts; 
325.6      (10) spousal support and child support payments made to 
325.7   persons outside the household; 
325.8      (11) real property; 
325.9      (12) vehicles; 
325.10     (13) checking and savings accounts; 
325.11     (14) savings certificates, savings bonds, stocks, and 
325.12  individual retirement accounts; 
325.13     (15) pregnancy, if related to eligibility; 
325.14     (16) inconsistent information, if related to eligibility; 
325.15     (17) medical insurance; 
325.16     (18) anticipated graduation date of an 18-year-old; 
325.17     (19) burial accounts; 
325.18     (20) school attendance, if related to eligibility; and 
325.19     (21) residence; 
325.20     (22) a claim of domestic violence if used as a basis for a 
325.21  deferral or exemption from the 60-month time limit in section 
325.22  256J.42 or employment and training services requirements in 
325.23  section 256J.56; and 
325.24     (23) disability if used as an exemption from employment and 
325.25  training services requirements under section 256J.56. 
325.26     Sec. 65.  Minnesota Statutes 1997 Supplement, section 
325.27  256J.32, subdivision 6, is amended to read: 
325.28     Subd. 6.  [RECERTIFICATION.] The county agency shall 
325.29  recertify eligibility in an annual face-to-face interview with 
325.30  the participant and verify the following: 
325.31     (1) presence of the minor child in the home, if 
325.32  questionable; 
325.33     (2) income, unless excluded, including self-employment 
325.34  expenses used as a deduction or deposits or withdrawals from 
325.35  business accounts; 
325.36     (3) assets when the value is within $200 of the asset 
326.1   limit; and 
326.2      (4) inconsistent information, if related to eligibility.  
326.3      Sec. 66.  Minnesota Statutes 1997 Supplement, section 
326.4   256J.32, is amended by adding a subdivision to read: 
326.5      Subd. 7.  [NOTICE TO UNDOCUMENTED PERSONS; RELEASE OF 
326.6   PRIVATE DATA.] County agencies in consultation with the 
326.7   commissioner of human services shall provide notification to 
326.8   undocumented persons regarding the release of personal data to 
326.9   the Immigration and Naturalization Service and develop protocol 
326.10  regarding the release or sharing of data about undocumented 
326.11  persons with the Immigration and Naturalization Service as 
326.12  required under sections 404, 434, and 411A of the Personal 
326.13  Responsibility and Work Opportunity Reconciliation Act of 1996.  
326.14     Sec. 67.  Minnesota Statutes 1997 Supplement, section 
326.15  256J.33, subdivision 1, is amended to read: 
326.16     Subdivision 1.  [DETERMINATION OF ELIGIBILITY.] A county 
326.17  agency must determine MFIP-S eligibility prospectively for a 
326.18  payment month based on retrospectively assessing income and the 
326.19  county agency's best estimate of the circumstances that will 
326.20  exist in the payment month. 
326.21     Except as described in section 256J.34, subdivision 1, when 
326.22  prospective eligibility exists, a county agency must calculate 
326.23  the amount of the assistance payment using retrospective 
326.24  budgeting.  To determine MFIP-S eligibility and the assistance 
326.25  payment amount, a county agency must apply countable income, 
326.26  described in section 256J.37, subdivisions 3 to 10, received by 
326.27  members of an assistance unit or by other persons whose income 
326.28  is counted for the assistance unit, described under sections 
326.29  256J.21 and 256J.37, subdivisions 1 and to 2. 
326.30     This income must be applied to the transitional standard, 
326.31  shared household standard, or family wage standard subject to 
326.32  this section and sections 256J.34 to 256J.36.  Income received 
326.33  in a calendar month and not otherwise excluded under section 
326.34  256J.21, subdivision 2, must be applied to the needs of an 
326.35  assistance unit. 
326.36     Sec. 68.  Minnesota Statutes 1997 Supplement, section 
327.1   256J.33, subdivision 4, is amended to read: 
327.2      Subd. 4.  [MONTHLY INCOME TEST.] A county agency must apply 
327.3   the monthly income test retrospectively for each month of MFIP-S 
327.4   eligibility.  An assistance unit is not eligible when the 
327.5   countable income equals or exceeds the transitional standard, 
327.6   the shared household standard, or the family wage level for the 
327.7   assistance unit.  The income applied against the monthly income 
327.8   test must include: 
327.9      (1) gross earned income from employment, prior to mandatory 
327.10  payroll deductions, voluntary payroll deductions, wage 
327.11  authorizations, and after the disregards in section 256J.21, 
327.12  subdivision 3 4, and the allocations in section 256J.36, unless 
327.13  the employment income is specifically excluded under section 
327.14  256J.21, subdivision 2; 
327.15     (2) gross earned income from self-employment less 
327.16  deductions for self-employment expenses in section 256J.37, 
327.17  subdivision 5, but prior to any reductions for personal or 
327.18  business state and federal income taxes, personal FICA, personal 
327.19  health and life insurance, and after the disregards in section 
327.20  256J.21, subdivision 3 4, and the allocations in section 
327.21  256J.36; 
327.22     (3) unearned income after deductions for allowable expenses 
327.23  in section 256J.37, subdivision 9, and allocations in section 
327.24  256J.36, unless the income has been specifically excluded in 
327.25  section 256J.21, subdivision 2; 
327.26     (4) gross earned income from employment as determined under 
327.27  clause (1) which is received by a member of an assistance unit 
327.28  who is a minor child or minor caregiver and less than a 
327.29  half-time student; 
327.30     (5) child support and spousal support received or 
327.31  anticipated to be received by an assistance unit; 
327.32     (6) the income of a parent when that parent is not included 
327.33  in the assistance unit; 
327.34     (7) the income of an eligible relative and spouse who seek 
327.35  to be included in the assistance unit; and 
327.36     (8) the unearned income of a minor child included in the 
328.1   assistance unit. 
328.2      Sec. 69.  Minnesota Statutes 1997 Supplement, section 
328.3   256J.35, is amended to read: 
328.4      256J.35 [AMOUNT OF ASSISTANCE PAYMENT.] 
328.5      Except as provided in paragraphs (a) to (c) (d), the amount 
328.6   of an assistance payment is equal to the difference between the 
328.7   transitional standard, shared household standard, or the 
328.8   Minnesota family wage level in section 256J.24, whichever is 
328.9   less, and countable income. 
328.10     (a) When MFIP-S eligibility exists for the month of 
328.11  application, the amount of the assistance payment for the month 
328.12  of application must be prorated from the date of application or 
328.13  the date all other eligibility factors are met for that 
328.14  applicant, whichever is later.  This provision applies when an 
328.15  applicant loses at least one day of MFIP-S eligibility. 
328.16     (b) MFIP-S overpayments to an assistance unit must be 
328.17  recouped according to section 256J.38, subdivision 4. 
328.18     (c) An initial assistance payment must not be made to an 
328.19  applicant who is not eligible on the date payment is made. 
328.20     (d) An individual whose needs have been otherwise provided 
328.21  for in another state, in whole or in part by county, state, or 
328.22  federal dollars during a month, is ineligible to receive MFIP-S 
328.23  for the month. 
328.24     Sec. 70.  Minnesota Statutes 1997 Supplement, section 
328.25  256J.36, is amended to read: 
328.26     256J.36 [ALLOCATION FOR UNMET NEED OF OTHER HOUSEHOLD 
328.27  MEMBERS.] 
328.28     Except as prohibited in paragraphs (a) and (b), an 
328.29  allocation of income is allowed from the caregiver's income to 
328.30  meet the unmet need of an ineligible spouse or an ineligible 
328.31  child under the age of 21 for whom the caregiver is financially 
328.32  responsible who also lives with the caregiver.  An allocation is 
328.33  allowed from the caregiver's income to meet the need of an 
328.34  ineligible or excluded person.  That allocation is allowed in an 
328.35  amount up to the difference between the MFIP-S family allowance 
328.36  transitional standard for the assistance unit when that excluded 
329.1   or ineligible person is included in the assistance unit and the 
329.2   MFIP-S family allowance for the assistance unit when 
329.3   the excluded or ineligible person is not included in the 
329.4   assistance unit.  These allocations must be deducted from the 
329.5   caregiver's counted earnings and from unearned income subject to 
329.6   paragraphs (a) and (b). 
329.7      (a) Income of a minor child in the assistance unit must not 
329.8   be allocated to meet the need of a an ineligible person who is 
329.9   not a member of the assistance unit, including the child's 
329.10  parent, even when that parent is the payee of the child's income.
329.11     (b) Income of an assistance unit a caregiver must not be 
329.12  allocated to meet the needs of a disqualified person ineligible 
329.13  for failure to cooperate with program requirements including 
329.14  child support requirements, a person ineligible due to fraud, or 
329.15  a relative caregiver and the caregiver's spouse who opt out of 
329.16  the assistance unit. 
329.17     Sec. 71.  Minnesota Statutes 1997 Supplement, section 
329.18  256J.37, subdivision 1, is amended to read: 
329.19     Subdivision 1.  [DEEMED INCOME FROM INELIGIBLE HOUSEHOLD 
329.20  MEMBERS.] Unless otherwise provided under subdivision 1a or 1b, 
329.21  the income of ineligible household members must be deemed after 
329.22  allowing the following disregards: 
329.23     (1) the first 18 percent of the excluded ineligible family 
329.24  member's gross earned income; 
329.25     (2) amounts the ineligible person actually paid to 
329.26  individuals not living in the same household but whom the 
329.27  ineligible person claims or could claim as dependents for 
329.28  determining federal personal income tax liability; 
329.29     (3) child or spousal support paid to a person who lives 
329.30  outside of the household all payments made by the ineligible 
329.31  person according to a court order for spousal support or the 
329.32  support of children not living in the assistance unit's 
329.33  household, provided that, if there has been a change in the 
329.34  financial circumstances of the ineligible person since the 
329.35  support order was entered, the ineligible person has petitioned 
329.36  for a modification of the support order; and 
330.1      (4) an amount for the needs of the ineligible person and 
330.2   other persons who live in the household but are not included in 
330.3   the assistance unit and are or could be claimed by an ineligible 
330.4   person as dependents for determining federal personal income tax 
330.5   liability.  This amount is equal to the difference between the 
330.6   MFIP-S need transitional standard when the excluded ineligible 
330.7   person is included in the assistance unit and the MFIP-S need 
330.8   transitional standard when the excluded ineligible person is not 
330.9   included in the assistance unit. 
330.10     Sec. 72.  Minnesota Statutes 1997 Supplement, section 
330.11  256J.37, is amended by adding a subdivision to read: 
330.12     Subd. 1a.  [DEEMED INCOME FROM DISQUALIFIED MEMBERS.] The 
330.13  income of disqualified members must be deemed after allowing the 
330.14  following disregards: 
330.15     (1) the first 18 percent of the disqualified member's gross 
330.16  earned income; 
330.17     (2) amounts the disqualified member actually paid to 
330.18  individuals not living in the same household but whom the 
330.19  disqualified member claims or could claim as dependents for 
330.20  determining federal personal income tax liability; 
330.21     (3) all payments made by the disqualified member according 
330.22  to a court order for spousal support or the support of children 
330.23  not living in the assistance unit's household, provided that, if 
330.24  there has been a change in the financial circumstances of the 
330.25  disqualified member's legal obligation to pay support since the 
330.26  support order was entered, the disqualified member has 
330.27  petitioned for a modification of the support order; and 
330.28     (4) an amount for the needs of other persons who live in 
330.29  the household but are not included in the assistance unit and 
330.30  are or could be claimed by the disqualified member as dependents 
330.31  for determining federal personal income tax liability.  This 
330.32  amount is equal to the difference between the MFIP-S 
330.33  transitional standard when the ineligible person is included in 
330.34  the assistance unit and the MFIP-S transitional standard when 
330.35  the ineligible person is not included in the assistance unit.  
330.36  An amount shall not be allowed for the needs of a disqualified 
331.1   member.  
331.2      Sec. 73.  Minnesota Statutes 1997 Supplement, section 
331.3   256J.37, is amended by adding a subdivision to read: 
331.4      Subd. 1b.  [DEEMED INCOME FROM PARENTS OF MINOR 
331.5   CAREGIVERS.] In households where minor caregivers live with a 
331.6   parent or parents who do not receive MFIP-S, the income of the 
331.7   parents must be deemed after allowing the following disregards: 
331.8      (1) income of the parents equal to 200 percent of the 
331.9   federal poverty guideline for a family size not including the 
331.10  minor parent and the minor parent's child in the household 
331.11  according to section 256J.21, subdivision 2, clause (43); 
331.12     (2) 18 percent of the parents' gross earned income; 
331.13     (3) amounts the parents actually paid to individuals not 
331.14  living in the same household but whom the parents claim or could 
331.15  claim as dependents for determining federal personal income tax 
331.16  liability; and 
331.17     (4) all payments made by parents according to a court order 
331.18  for spousal support or the support of children not living in the 
331.19  parent's household, provided that, if there has been a change in 
331.20  the financial circumstances of the parent's legal obligation to 
331.21  pay support since the support order was entered, the parents 
331.22  have petitioned for a modification of the support order.  
331.23     Sec. 74.  Minnesota Statutes 1997 Supplement, section 
331.24  256J.37, subdivision 2, is amended to read: 
331.25     Subd. 2.  [DEEMED INCOME AND ASSETS OF SPONSOR OF 
331.26  NONCITIZENS.] All income and assets of a sponsor, or sponsor's 
331.27  spouse, who executed an affidavit of support for a noncitizen 
331.28  must be deemed to be unearned income of the noncitizen as 
331.29  specified in the Personal Responsibility and Work Opportunity 
331.30  Reconciliation Act of 1996, title IV, Public Law Number 104-193, 
331.31  sections 421 and 422, and subsequently set out in federal 
331.32  rules.  If a noncitizen applies for or receives MFIP-S, the 
331.33  county must deem the income and assets of the noncitizen's 
331.34  sponsor and the sponsor's spouse who have signed an affidavit of 
331.35  support for the noncitizen as specified in Public Law Number 
331.36  104-193, title IV, sections 421 and 422, the Personal 
332.1   Responsibility and Work Opportunity Reconciliation Act of 1996.  
332.2   The income of a sponsor and the sponsor's spouse is considered 
332.3   unearned income of the noncitizen.  The assets of a sponsor and 
332.4   the sponsor's spouse are considered available assets of the 
332.5   noncitizen.  
332.6      Sec. 75.  Minnesota Statutes 1997 Supplement, section 
332.7   256J.37, subdivision 9, is amended to read: 
332.8      Subd. 9.  [UNEARNED INCOME.] (a) The county agency must 
332.9   apply unearned income, including housing subsidies as in 
332.10  paragraph (b), to the transitional standard.  When determining 
332.11  the amount of unearned income, the county agency must deduct the 
332.12  costs necessary to secure payments of unearned income.  These 
332.13  costs include legal fees, medical fees, and mandatory deductions 
332.14  such as federal and state income taxes. 
332.15     (b) Effective July 1, 1998 1999, the county agency shall 
332.16  count $100 of the value of public and assisted rental subsidies 
332.17  provided through the Department of Housing and Urban Development 
332.18  (HUD) as unearned income.  The full amount of the subsidy must 
332.19  be counted as unearned income when the subsidy is less than $100.
332.20     Sec. 76.  Minnesota Statutes 1997 Supplement, section 
332.21  256J.38, subdivision 1, is amended to read: 
332.22     Subdivision 1.  [SCOPE OF OVERPAYMENT.] When a participant 
332.23  or former participant receives an overpayment due to agency, 
332.24  client, or ATM error, or due to assistance received while an 
332.25  appeal is pending and the participant or former participant is 
332.26  determined ineligible for assistance or for less assistance than 
332.27  was received, the county agency must recoup or recover the 
332.28  overpayment under using the conditions of this 
332.29  section. following methods:  
332.30     (1) reconstruct each affected budget month and 
332.31  corresponding payment month; 
332.32     (2) use the policies and procedures that were in effect for 
332.33  the payment month; and 
332.34     (3) do not allow employment disregards in section 256J.21, 
332.35  subdivision 3 or 4, in the calculation of the overpayment when 
332.36  the unit has not reported within two calendar months following 
333.1   the end of the month in which the income was received. 
333.2      Sec. 77.  Minnesota Statutes 1997 Supplement, section 
333.3   256J.39, subdivision 2, is amended to read: 
333.4      Subd. 2.  [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 
333.5   paying assistance directly to a participant may be used when: 
333.6      (1) a county agency determines that a vendor payment is the 
333.7   most effective way to resolve an emergency situation pertaining 
333.8   to basic needs; 
333.9      (2) a caregiver makes a written request to the county 
333.10  agency asking that part or all of the assistance payment be 
333.11  issued by protective or vendor payments for shelter and utility 
333.12  service only.  The caregiver may withdraw this request in 
333.13  writing at any time; 
333.14     (3) a caregiver has exhibited a continuing pattern of 
333.15  mismanaging funds as determined by the county agency; 
333.16     (4) the vendor payment is part of a sanction under section 
333.17  256J.46, subdivision 2; or 
333.18     (5) (4) the vendor payment is required under section 
333.19  256J.24, subdivision 8, 256J.26, or 256J.43; 
333.20     (5) protective payments are required for minor parents 
333.21  under section 256J.14; or 
333.22     (6) a caregiver has exhibited a continuing pattern of 
333.23  mismanaging funds as determined by the county agency. 
333.24     The director of a county agency must approve a proposal for 
333.25  protective or vendor payment for money mismanagement when there 
333.26  is a pattern of mismanagement under clause (6).  During the time 
333.27  a protective or vendor payment is being made, the county agency 
333.28  must provide services designed to alleviate the causes of the 
333.29  mismanagement. 
333.30     The continuing need for and method of payment must be 
333.31  documented and reviewed every 12 months.  The director of a 
333.32  county agency must approve the continuation of protective or 
333.33  vendor payments. when it appears that the need for protective or 
333.34  vendor payments will continue or is likely to continue beyond 
333.35  two years because the county agency's efforts have not resulted 
333.36  in sufficiently improved use of assistance on behalf of the 
334.1   minor child, judicial appointment of a legal guardian or other 
334.2   legal representative must be sought by the county agency.  
334.3      Sec. 78.  Minnesota Statutes 1997 Supplement, section 
334.4   256J.395, is amended to read: 
334.5      256J.395 [VENDOR PAYMENT OF RENT SHELTER COSTS AND 
334.6   UTILITIES.] 
334.7      Subdivision 1.  [VENDOR PAYMENT.] (a) Effective July 1, 
334.8   1997, when a county is required to provide assistance to 
334.9   a recipient participant in vendor form for rent shelter costs 
334.10  and utilities under this chapter, or chapter 256, 256D, or 256K, 
334.11  the cost of utilities for a given family may be assumed to be: 
334.12     (1) the average of the actual monthly cost of utilities for 
334.13  that family for the prior 12 months at the family's current 
334.14  residence, if applicable; 
334.15     (2) the monthly plan amount, if any, set by the local 
334.16  utilities for that family at the family's current residence; or 
334.17     (3) the estimated monthly utility costs for the dwelling in 
334.18  which the family currently resides. 
334.19     (b) For purposes of this section, "utility" means any of 
334.20  the following:  municipal water and sewer service; electric, 
334.21  gas, or heating fuel service; or wood, if that is the heating 
334.22  source. 
334.23     (c) In any instance where a vendor payment for rent is 
334.24  directed to a landlord not legally entitled to the payment, the 
334.25  county social services agency shall immediately institute 
334.26  proceedings to collect the amount of the vendored rent payment, 
334.27  which shall be considered a debt under section 270A.03, 
334.28  subdivision 5. 
334.29     Subd. 2.  [VENDOR PAYMENT NOTIFICATION.] (a) When a county 
334.30  agency is required to provide assistance to a participant in 
334.31  vendor payment form for shelter costs or utilities under 
334.32  subdivision 1, and the participant does not give the agency the 
334.33  information needed to pay the vendor, the county agency shall 
334.34  notify the participant of the intent to terminate assistance by 
334.35  mail at least ten days before the effective date of the adverse 
334.36  action. 
335.1      (b) The notice of action shall include a request for 
335.2   information about: 
335.3      (1) the amount of the participant's shelter costs or 
335.4   utilities; 
335.5      (2) the due date of the shelter costs or utilities; and 
335.6      (3) the name and address of the landlord, contract for deed 
335.7   holder, mortgage company, and utility vendor. 
335.8      (c) If the participant fails to provide the requested 
335.9   information by the effective date of the adverse action, the 
335.10  county must terminate the MFIP-S grant.  If the applicant or 
335.11  participant verifies they do not have shelter costs or utility 
335.12  obligations, the county shall not terminate assistance if the 
335.13  assistance unit is otherwise eligible. 
335.14     Subd. 3.  [DISCONTINUING VENDOR PAYMENTS DUE TO DISPUTE 
335.15  WITH LANDLORD.] The county agency shall discontinue vendor 
335.16  payments for shelter costs imposed under this chapter when the 
335.17  vendor payment interferes with the participant's right to 
335.18  withhold rent due to a dispute with the participant's landlord 
335.19  in accordance with federal, state, or local housing laws. 
335.20     Sec. 79.  Minnesota Statutes 1997 Supplement, section 
335.21  256J.42, is amended to read: 
335.22     256J.42 [60-MONTH TIME LIMIT.] 
335.23     Subdivision 1.  [TIME LIMIT.] (a) Except for the exemptions 
335.24  in this section and in section 256J.11, subdivision 2, an 
335.25  assistance unit in which any adult caregiver has received 60 
335.26  months of cash assistance funded in whole or in part by the TANF 
335.27  block grant in this or any other state or United States 
335.28  territory, MFIP-S, AFDC, or family general assistance, funded in 
335.29  whole or in part by state appropriations, is ineligible to 
335.30  receive MFIP-S.  Any cash assistance funded with TANF dollars in 
335.31  this or any other state or United States territory, or MFIP-S 
335.32  assistance funded in whole or in part by state appropriations, 
335.33  that was received by the unit on or after the date TANF was 
335.34  implemented, including any assistance received in states or 
335.35  United States territories of prior residence, counts toward the 
335.36  60-month limitation.  The 60-month limit applies to a minor who 
336.1   is the head of a household or who is married to the head of a 
336.2   household except under subdivision 5.  The 60-month time period 
336.3   does not need to be consecutive months for this provision to 
336.4   apply.  
336.5      (b) Months before July 1998 in which individuals receive 
336.6   assistance as part of an MFIP, MFIP-R, or MFIP or MFIP-R 
336.7   comparison group family under sections 256.031 to 256.0361 or 
336.8   sections 256.047 to 256.048 are not included in the 60-month 
336.9   time limit. 
336.10     Subd. 2.  [ASSISTANCE FROM ANOTHER STATE.] An individual 
336.11  whose needs have been otherwise provided for in another state, 
336.12  in whole or in part by the TANF block grant during a month, is 
336.13  ineligible to receive MFIP-S for the month. 
336.14     Subd. 3.  [ADULTS LIVING ON AN INDIAN RESERVATION.] In 
336.15  determining the number of months for which an adult has received 
336.16  assistance under MFIP-S, the county agency must disregard any 
336.17  month during which the adult lived on an Indian reservation if, 
336.18  during the month:  
336.19     (1) at least 1,000 individuals were living on the 
336.20  reservation; and 
336.21     (2) at least 50 percent of the adults living on the 
336.22  reservation were unemployed not employed. 
336.23     Subd. 4.  [VICTIMS OF DOMESTIC VIOLENCE.] Any cash 
336.24  assistance received by an assistance unit in a month when a 
336.25  caregiver is complying with a safety plan under the MFIP-S 
336.26  employment and training component does not count toward the 
336.27  60-month limitation on assistance. 
336.28     Subd. 5.  [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash 
336.29  assistance received by an assistance unit does not count toward 
336.30  the 60-month limit on assistance during a month in which 
336.31  the parental caregiver is in the category in section 256J.56, 
336.32  clause (1).  The exemption applies for the period of time the 
336.33  caregiver belongs to one of the categories specified in this 
336.34  subdivision. 
336.35     (b) From July 1, 1997, until the date MFIP-S is operative 
336.36  in the caregiver's county of financial responsibility, any cash 
337.1   assistance received by a caregiver who is complying with 
337.2   sections 256.73, subdivision 5a, and 256.736, if applicable, 
337.3   does not count toward the 60-month limit on assistance.  
337.4   Thereafter, any cash assistance received by a minor caregiver 
337.5   who is complying with the requirements of sections 256J.14 and 
337.6   256J.54, if applicable, does not count towards the 60-month 
337.7   limit on assistance. 
337.8      (c) Any diversionary assistance or emergency assistance 
337.9   received does not count toward the 60-month limit. 
337.10     (d) Any cash assistance received by an 18- or 19-year-old 
337.11  caregiver who is complying with the requirements of section 
337.12  256J.54 does not count toward the 60-month limit. 
337.13     Sec. 80.  Minnesota Statutes 1997 Supplement, section 
337.14  256J.43, is amended to read: 
337.15     256J.43 [INTERSTATE PAYMENT STANDARDS.] 
337.16     Subdivision 1.  [PAYMENT.] (a) Effective July 1, 1997, the 
337.17  amount of assistance paid to an eligible family unit in which 
337.18  all members have resided in this state for fewer than 12 
337.19  consecutive calendar months immediately preceding the date of 
337.20  application shall be the lesser of either the payment interstate 
337.21  transitional standard that would have been received by 
337.22  the family assistance unit from the state of immediate prior 
337.23  residence, or the amount calculated in accordance with AFDC or 
337.24  MFIP-S standards.  The lesser payment must continue until 
337.25  the family assistance unit meets the 12-month requirement.  An 
337.26  assistance unit that has not resided in Minnesota for 12 months 
337.27  from the date of application is not exempt from the interstate 
337.28  payment provisions solely because a child is born in Minnesota 
337.29  to a member of the assistance unit.  Payment must be calculated 
337.30  by applying this state's budgeting policies, and the unit's net 
337.31  income must be deducted from the payment standard in the other 
337.32  state or in this state, whichever is lower.  Payment shall be 
337.33  made in vendor form for rent shelter and utilities, up to the 
337.34  limit of the grant amount, and residual amounts, if any, shall 
337.35  be paid directly to the assistance unit. 
337.36     (b) During the first 12 months a family an assistance unit 
338.1   resides in this state, the number of months that a family unit 
338.2   is eligible to receive AFDC or MFIP-S benefits is limited to the 
338.3   number of months the family assistance unit would have been 
338.4   eligible to receive similar benefits in the state of immediate 
338.5   prior residence. 
338.6      (c) This policy applies whether or not the family 
338.7   assistance unit received similar benefits while residing in the 
338.8   state of previous residence. 
338.9      (d) When a family an assistance unit moves to this state 
338.10  from another state where the family assistance unit has 
338.11  exhausted that state's time limit for receiving benefits under 
338.12  that state's TANF program, the family unit will not be eligible 
338.13  to receive any AFDC or MFIP-S benefits in this state for 12 
338.14  months from the date the family assistance unit moves here. 
338.15     (e) For the purposes of this section, "state of immediate 
338.16  prior residence" means: 
338.17     (1) the state in which the applicant declares the applicant 
338.18  spent the most time in the 30 days prior to moving to this 
338.19  state; or 
338.20     (2) the state in which an applicant who is a migrant worker 
338.21  maintains a home. 
338.22     (f) The commissioner shall annually verify and update all 
338.23  other states' payment standards as they are to be in effect in 
338.24  July of each year. 
338.25     (g) Applicants must provide verification of their state of 
338.26  immediate prior residence, in the form of tax statements, a 
338.27  driver's license, automobile registration, rent receipts, or 
338.28  other forms of verification approved by the commissioner. 
338.29     (h) Migrant workers, as defined in section 256J.08, and 
338.30  their immediate families are exempt from this section, provided 
338.31  the migrant worker provides verification that the migrant family 
338.32  worked in this state within the last 12 months and earned at 
338.33  least $1,000 in gross wages during the time the migrant worker 
338.34  worked in this state. 
338.35     Subd. 2.  [TEMPORARY ABSENCE FROM MINNESOTA.] (a) For an 
338.36  assistance unit that has met the requirements of section 
339.1   256J.12, the number of months that the assistance unit receives 
339.2   benefits under the interstate payment standards in this section 
339.3   is not affected by an absence from Minnesota for fewer than 30 
339.4   consecutive days. 
339.5      (b) For an assistance unit that has met the requirements of 
339.6   section 256J.12, the number of months that the assistance unit 
339.7   receives benefits under the interstate payment standards in this 
339.8   section is not affected by an absence from Minnesota for more 
339.9   than 30 consecutive days but fewer than 90 consecutive days, 
339.10  provided the assistance unit continues to maintain a residence 
339.11  in Minnesota during the period of absence. 
339.12     Subd. 3.  [EXCEPTIONS TO THE INTERSTATE PAYMENT 
339.13  POLICY.] Applicants who lived in another state in the 12 months 
339.14  prior to applying for assistance are exempt from the interstate 
339.15  payment policy for the months that a member of the unit: 
339.16     (1) served in the United States armed services, provided 
339.17  the person returned to Minnesota within 30 days of leaving the 
339.18  armed forces, and intends to remain in Minnesota; 
339.19     (2) attended school in another state, paid nonresident 
339.20  tuition or Minnesota tuition rates under a reciprocity 
339.21  agreement, provided the person left Minnesota specifically to 
339.22  attend school and returned to Minnesota within 30 days of 
339.23  graduation with the intent to remain in Minnesota; or 
339.24     (3) meets the following criteria: 
339.25     (i) a minor child or a minor caregiver moves from another 
339.26  state to the residence of a relative caregiver; 
339.27     (ii) the minor caregiver applies for and receives family 
339.28  cash assistance; 
339.29     (iii) the relative caregiver chooses not to be part of the 
339.30  MFIP-S assistance unit; and 
339.31     (iv) the relative caregiver has resided in Minnesota for at 
339.32  least 12 months from the date the assistance unit applies for 
339.33  cash assistance. 
339.34     Subd. 4.  [INELIGIBLE MANDATORY UNIT MEMBERS.] Ineligible 
339.35  mandatory unit members who have resided in Minnesota for 12 
339.36  months immediately before the unit's date of application 
340.1   establish the other assistance unit members' eligibility for the 
340.2   MFIP-S transitional standard.  
340.3      Sec. 81.  Minnesota Statutes 1997 Supplement, section 
340.4   256J.45, subdivision 1, is amended to read: 
340.5      Subdivision 1.  [COUNTY AGENCY TO PROVIDE ORIENTATION.] A 
340.6   county agency must provide each MFIP-S caregiver with a 
340.7   face-to-face orientation.  The caregiver must attend the 
340.8   orientation.  The county agency must inform the caregiver that 
340.9   failure to attend the orientation is considered a first an 
340.10  occurrence of noncompliance with program requirements, and will 
340.11  result in the imposition of a sanction under section 
340.12  256J.46.  If the client complies with the orientation 
340.13  requirement prior to the first day of the month in which the 
340.14  grant reduction is proposed to occur, the orientation sanction 
340.15  shall be lifted.  
340.16     Sec. 82.  Minnesota Statutes 1997 Supplement, section 
340.17  256J.45, subdivision 2, is amended to read: 
340.18     Subd. 2.  [GENERAL INFORMATION.] The MFIP-S orientation 
340.19  must consist of a presentation that informs caregivers of: 
340.20     (1) the necessity to obtain immediate employment; 
340.21     (2) the work incentives under MFIP-S; 
340.22     (3) the requirement to comply with the employment plan and 
340.23  other requirements of the employment and training services 
340.24  component of MFIP-S, including a description of the range of 
340.25  work and training activities that are allowable under MFIP-S to 
340.26  meet the individual needs of participants; 
340.27     (4) the consequences for failing to comply with the 
340.28  employment plan and other program requirements, and that the 
340.29  county agency may not impose a sanction when failure to comply 
340.30  is due to the unavailability of child care or other 
340.31  circumstances where the participant has good cause under section 
340.32  256J.45, subdivision 3; 
340.33     (5) the rights, responsibilities, and obligations of 
340.34  participants; 
340.35     (6) the types and locations of child care services 
340.36  available through the county agency; 
341.1      (7) the availability and the benefits of the early 
341.2   childhood health and developmental screening under sections 
341.3   123.701 to 123.74; 
341.4      (8) the caregiver's eligibility for transition year child 
341.5   care assistance under section 119B.05; 
341.6      (9) the caregiver's eligibility for extended medical 
341.7   assistance when the caregiver loses eligibility for MFIP-S due 
341.8   to increased earnings or increased child or spousal support; and 
341.9      (10) the caregiver's option to choose an employment and 
341.10  training provider and information about each provider, including 
341.11  but not limited to, services offered, program components, job 
341.12  placement rates, job placement wages, and job retention rates; 
341.13     (11) the caregiver's option to request approval of an 
341.14  education and training plan according to section 256J.52; and 
341.15     (12) the work study programs available under the higher 
341.16  educational system. 
341.17     Sec. 83.  Minnesota Statutes 1997 Supplement, section 
341.18  256J.45, is amended by adding a subdivision to read: 
341.19     Subd. 3.  [GOOD CAUSE EXEMPTIONS FOR NOT ATTENDING 
341.20  ORIENTATION.] (a) The county agency shall not impose the 
341.21  sanction under section 256J.46 if it determines that the 
341.22  participant has good cause for failing to attend orientation.  
341.23  Good cause exists when: 
341.24     (1) appropriate child care is not available; 
341.25     (2) the participant is ill or injured; 
341.26     (3) a family member is ill and needs care by the 
341.27  participant that prevents the participant from attending 
341.28  orientation; 
341.29     (4) the caregiver is unable to secure necessary 
341.30  transportation; 
341.31     (5) the caregiver is in an emergency situation that 
341.32  prevents orientation attendance; 
341.33     (6) the orientation conflicts with the caregiver's work, 
341.34  training, or school schedule; or 
341.35     (7) the caregiver documents other verifiable impediments to 
341.36  orientation attendance beyond the caregiver's control.  
342.1      (b) Counties must work with clients to provide child care 
342.2   and transportation necessary to ensure a caregiver has every 
342.3   opportunity to attend orientation. 
342.4      Sec. 84.  Minnesota Statutes 1997 Supplement, section 
342.5   256J.46, subdivision 1, is amended to read: 
342.6      Subdivision 1.  [SANCTIONS FOR PARTICIPANTS NOT COMPLYING 
342.7   WITH PROGRAM REQUIREMENTS.] (a) A participant who fails without 
342.8   good cause to comply with the requirements of this chapter, and 
342.9   who is not subject to a sanction under subdivision 2, shall be 
342.10  subject to a sanction as provided in this subdivision. 
342.11     A sanction under this subdivision becomes effective ten 
342.12  days after the month following the month in which a required 
342.13  notice is given.  A sanction must not be imposed when a 
342.14  participant comes into compliance with the requirements for 
342.15  orientation under section 256J.45 or third party liability for 
342.16  medical services under section 256J.30, subdivision 10, prior to 
342.17  the effective date of the sanction.  A sanction must not be 
342.18  imposed when a participant comes into compliance with the 
342.19  requirements for employment and training services under sections 
342.20  256J.49 to 256J.72 ten days prior to the effective date of the 
342.21  sanction.  For purposes of this subdivision, each month that a 
342.22  participant fails to comply with a requirement of this chapter 
342.23  shall be considered a separate occurrence of noncompliance.  A 
342.24  participant who has had one or more sanctions imposed must 
342.25  remain in compliance with the provisions of this chapter for six 
342.26  months in order for a subsequent occurrence of noncompliance to 
342.27  be considered a first occurrence.  
342.28     (b) Sanctions for noncompliance shall be imposed as follows:
342.29     (1) For the first occurrence of noncompliance by a 
342.30  participant in a single-parent household or by one participant 
342.31  in a two-parent household, the participant's assistance unit's 
342.32  grant shall be reduced by ten percent of the applicable MFIP-S 
342.33  transitional standard, the shared household standard, or the 
342.34  interstate transitional standard for an assistance unit of the 
342.35  same size, whichever is applicable, with the residual paid to 
342.36  the participant.  The reduction in the grant amount must be in 
343.1   effect for a minimum of one month and shall be removed in the 
343.2   month following the month that the participant returns to 
343.3   compliance.  
343.4      (2) For a second or subsequent occurrence of noncompliance, 
343.5   or when both participants in a two-parent household are out of 
343.6   compliance at the same time, the participant's rent assistance 
343.7   unit's shelter costs shall be vendor paid up to the amount of 
343.8   the cash portion of the MFIP-S grant for which the participant's 
343.9   assistance unit is eligible.  At county option, 
343.10  the participant's assistance unit's utilities may also be vendor 
343.11  paid up to the amount of the cash portion of the MFIP-S grant 
343.12  remaining after vendor payment of the participant's rent 
343.13  assistance unit's shelter costs.  The vendor payment of rent 
343.14  and, if in effect, utilities, must be in effect for six months 
343.15  from the date that a sanction is imposed under this clause.  The 
343.16  residual amount of the grant after vendor payment, if any, must 
343.17  be reduced by an amount equal to 30 percent of the applicable 
343.18  MFIP-S transitional standard, the shared household standard, or 
343.19  the interstate transitional standard for an assistance unit of 
343.20  the same size, whichever is applicable, before the residual is 
343.21  paid to the participant assistance unit.  The reduction in the 
343.22  grant amount must be in effect for a minimum of one month and 
343.23  shall be removed in the month following the month that the a 
343.24  participant in a one-parent household returns to compliance.  In 
343.25  a two-parent household, the grant reduction must be in effect 
343.26  for a minimum of one month and shall be removed in the month 
343.27  following the month both participants return to compliance.  The 
343.28  vendor payment of rent shelter costs and, if applicable, 
343.29  utilities shall be removed six months after the month in which 
343.30  the participant returns or participants return to compliance. 
343.31     (c) No later than during the second month that a sanction 
343.32  under paragraph (b), clause (2), is in effect due to 
343.33  noncompliance with employment services, the participant's case 
343.34  file must be reviewed to determine if: 
343.35     (i) the continued noncompliance can be explained and 
343.36  mitigated by providing a needed preemployment activity, as 
344.1   defined in section 256J.49, subdivision 13, clause (16); 
344.2      (ii) the participant qualifies for a good cause exception 
344.3   under section 256J.57; or 
344.4      (iii) the participant qualifies for an exemption under 
344.5   section 256J.56. 
344.6      If the lack of an identified activity can explain the 
344.7   noncompliance, the county must work with the participant to 
344.8   provide the identified activity, and the county must restore the 
344.9   participant's grant amount to the full amount for which the 
344.10  assistance unit is eligible.  The grant must be restored 
344.11  retroactively to the first day of the month in which the 
344.12  participant was found to lack preemployment activities or to 
344.13  qualify for an exemption or good cause exception. 
344.14     If the participant is found to qualify for a good cause 
344.15  exception or an exemption, the county must restore the 
344.16  participant's grant to the full amount for which the assistance 
344.17  unit is eligible.  If the participant's grant is restored under 
344.18  this paragraph, the vendor payment of rent and if applicable, 
344.19  utilities, shall be removed six months after the month in which 
344.20  the sanction was imposed and the county must consider a 
344.21  subsequent occurrence of noncompliance to be a first occurrence. 
344.22     Sec. 85.  Minnesota Statutes 1997 Supplement, section 
344.23  256J.46, subdivision 2, is amended to read: 
344.24     Subd. 2.  [SANCTIONS FOR REFUSAL TO COOPERATE WITH SUPPORT 
344.25  REQUIREMENTS.] The grant of an MFIP-S caregiver who refuses to 
344.26  cooperate, as determined by the child support enforcement 
344.27  agency, with support requirements under section 256.741, if 
344.28  enacted, shall be subject to sanction as specified in this 
344.29  subdivision.  The assistance unit's grant must be reduced by 25 
344.30  percent of the applicable transitional standard.  The residual 
344.31  amount of the grant, if any, must be paid to the caregiver.  A 
344.32  sanction under this subdivision becomes effective ten days after 
344.33  the first month following the month in which a required notice 
344.34  is given.  A sanction must not be imposed when a caregiver comes 
344.35  into compliance with the requirements under section 256.741 
344.36  prior to the effective date of the sanction.  The sanction must 
345.1   be in effect for a minimum of one month and shall be removed 
345.2   only when in the month following the month that the caregiver 
345.3   cooperates with the support requirements.  Each month that an 
345.4   MFIP-S caregiver fails to comply with the requirements of 
345.5   section 256.741 must be considered a separate occurrence of 
345.6   noncompliance.  An MFIP-S caregiver who has had one or more 
345.7   sanctions imposed must remain in compliance with the 
345.8   requirements of section 256.741 for six months in order for a 
345.9   subsequent sanction to be considered a first occurrence. 
345.10     Sec. 86.  Minnesota Statutes 1997 Supplement, section 
345.11  256J.46, subdivision 2a, is amended to read: 
345.12     Subd. 2a.  [DUAL SANCTIONS.] (a) Notwithstanding the 
345.13  provisions of subdivisions 1 and 2, for a participant subject to 
345.14  a sanction for refusal to comply with child support requirements 
345.15  under subdivision 2 and subject to a concurrent sanction for 
345.16  refusal to cooperate with other program requirements under 
345.17  subdivision 1, sanctions shall be imposed in the manner 
345.18  prescribed in this subdivision. 
345.19     A participant who has had one or more sanctions imposed 
345.20  under this subdivision must remain in compliance with the 
345.21  provisions of this chapter for six months in order for a 
345.22  subsequent occurrence of noncompliance to be considered a first 
345.23  occurrence.  Any vendor payment of rent shelter costs or 
345.24  utilities under this subdivision must remain in effect for six 
345.25  months after the month in which the participant is no longer 
345.26  subject to sanction under subdivision 1. 
345.27     (b) If the participant was subject to sanction for: 
345.28     (i) noncompliance under subdivision 1 before being subject 
345.29  to sanction for noncooperation under subdivision 2; or 
345.30     (ii) noncooperation under subdivision 2 before being 
345.31  subject to sanction for noncompliance under subdivision 1; 
345.32  the participant shall be sanctioned as provided in subdivision 
345.33  1, paragraph (b), clause (2), and the requirement that the 
345.34  county conduct a review as specified in subdivision 1, paragraph 
345.35  (c), remains in effect. 
345.36     (c) A participant who first becomes subject to sanction 
346.1   under both subdivisions 1 and 2 in the same month is subject to 
346.2   sanction as follows: 
346.3      (i) in the first month of noncompliance and noncooperation, 
346.4   the participant's grant must be reduced by 25 percent of the 
346.5   applicable transitional standard, with any residual amount paid 
346.6   to the participant; 
346.7      (ii) in the second and subsequent months of noncompliance 
346.8   and noncooperation, the participant shall be sanctioned as 
346.9   provided in subdivision 1, paragraph (b), clause (2). 
346.10     The requirement that the county conduct a review as 
346.11  specified in subdivision 1, paragraph (c), remains in effect. 
346.12     (d) A participant remains subject to sanction under 
346.13  subdivision 2 if the participant: 
346.14     (i) returns to compliance and is no longer subject to 
346.15  sanction under subdivision 1; or 
346.16     (ii) has the sanction under subdivision 1, paragraph (b), 
346.17  removed upon completion of the review under subdivision 1, 
346.18  paragraph (c). 
346.19     A participant remains subject to sanction under subdivision 
346.20  1, paragraph (b), if the participant cooperates and is no longer 
346.21  subject to sanction under subdivision 2. 
346.22     Sec. 87.  Minnesota Statutes 1997 Supplement, section 
346.23  256J.47, subdivision 4, is amended to read: 
346.24     Subd. 4.  [INELIGIBILITY FOR MFIP-S; EMERGENCY ASSISTANCE; 
346.25  AND EMERGENCY GENERAL ASSISTANCE.] Upon receipt of diversionary 
346.26  assistance, the family is ineligible for MFIP-S, emergency 
346.27  assistance, and emergency general assistance for a period of 
346.28  time.  To determine the period of ineligibility, the county 
346.29  shall use the following formula:  regardless of household 
346.30  changes, the county agency must calculate the number of days of 
346.31  ineligibility by dividing the diversionary assistance issued by 
346.32  the transitional standard a family of the same size and 
346.33  composition would have received under MFIP-S, or if applicable 
346.34  the interstate transitional standard, multiplied by 30, 
346.35  truncating the result.  The ineligibility period begins the date 
346.36  the diversionary assistance is issued. 
347.1      Sec. 88.  Minnesota Statutes 1997 Supplement, section 
347.2   256J.48, subdivision 2, is amended to read: 
347.3      Subd. 2.  [ELIGIBILITY.] Notwithstanding other eligibility 
347.4   provisions of this chapter, any family without resources 
347.5   immediately available to meet emergency needs identified in 
347.6   subdivision 3 shall be eligible for an emergency grant under the 
347.7   following conditions: 
347.8      (1) a family member has resided in this state for at least 
347.9   30 days; 
347.10     (2) the family is without resources immediately available 
347.11  to meet emergency needs; 
347.12     (3) assistance is necessary to avoid destitution or provide 
347.13  emergency shelter arrangements; and 
347.14     (4) the family's destitution or need for shelter or 
347.15  utilities did not arise because the child or relative caregiver 
347.16  refused without good cause under section 256J.57 to accept 
347.17  employment or training for employment in this state or another 
347.18  state; and 
347.19     (5) at least one child or pregnant woman in the emergency 
347.20  assistance unit meets MFIP-S citizenship requirements in section 
347.21  256J.11. 
347.22     Sec. 89.  Minnesota Statutes 1997 Supplement, section 
347.23  256J.48, subdivision 3, is amended to read: 
347.24     Subd. 3.  [EMERGENCY NEEDS.] Emergency needs are limited to 
347.25  the following: 
347.26     (a)  [RENT.] A county agency may deny assistance to prevent 
347.27  eviction from rented or leased shelter of an otherwise eligible 
347.28  applicant when the county agency determines that an applicant's 
347.29  anticipated income will not cover continued payment for shelter, 
347.30  subject to conditions in clauses (1) to (3): 
347.31     (1) a county agency must not deny assistance when an 
347.32  applicant can document that the applicant is unable to locate 
347.33  habitable shelter, unless the county agency can document that 
347.34  one or more habitable shelters are available in the community 
347.35  that will result in at least a 20 percent reduction in monthly 
347.36  expense for shelter and that this shelter will be cost-effective 
348.1   for the applicant; 
348.2      (2) when no alternative shelter can be identified by either 
348.3   the applicant or the county agency, the county agency shall not 
348.4   deny assistance because anticipated income will not cover rental 
348.5   obligation; and 
348.6      (3) when cost-effective alternative shelter is identified, 
348.7   the county agency shall issue assistance for moving expenses as 
348.8   provided in paragraph (d) (e). 
348.9      (b)  [DEFINITIONS.] For purposes of paragraph (a), the 
348.10  following definitions apply (1) "metropolitan statistical area" 
348.11  is as defined by the United States Census Bureau; (2) 
348.12  "alternative shelter" includes any shelter that is located 
348.13  within the metropolitan statistical area containing the county 
348.14  and for which the applicant is eligible, provided the applicant 
348.15  does not have to travel more than 20 miles to reach the shelter 
348.16  and has access to transportation to the shelter.  Clause (2) 
348.17  does not apply to counties in the Minneapolis-St. Paul 
348.18  metropolitan statistical area. 
348.19     (c)  [MORTGAGE AND CONTRACT FOR DEED ARREARAGES.] A county 
348.20  agency shall issue assistance for mortgage or contract for deed 
348.21  arrearages on behalf of an otherwise eligible applicant 
348.22  according to clauses (1) to (4): 
348.23     (1) assistance for arrearages must be issued only when a 
348.24  home is owned, occupied, and maintained by the applicant; 
348.25     (2) assistance for arrearages must be issued only when no 
348.26  subsequent foreclosure action is expected within the 12 months 
348.27  following the issuance; 
348.28     (3) assistance for arrearages must be issued only when an 
348.29  applicant has been refused refinancing through a bank or other 
348.30  lending institution and the amount payable, when combined with 
348.31  any payments made by the applicant, will be accepted by the 
348.32  creditor as full payment of the arrearage; 
348.33     (4) costs paid by a family which are counted toward the 
348.34  payment requirements in this clause are:  principal and interest 
348.35  payments on mortgages or contracts for deed, balloon payments, 
348.36  homeowner's insurance payments, manufactured home lot rental 
349.1   payments, and tax or special assessment payments related to the 
349.2   homestead.  Costs which are not counted include closing costs 
349.3   related to the sale or purchase of real property. 
349.4      To be eligible for assistance for costs specified in clause 
349.5   (4) which are outstanding at the time of foreclosure, an 
349.6   applicant must have paid at least 40 percent of the family's 
349.7   gross income toward these costs in the month of application and 
349.8   the 11-month period immediately preceding the month of 
349.9   application. 
349.10     When an applicant is eligible under clause (4), a county 
349.11  agency shall issue assistance up to a maximum of four times the 
349.12  MFIP-S transitional standard for a comparable assistance unit. 
349.13     (d)  [DAMAGE OR UTILITY DEPOSITS.] A county agency shall 
349.14  issue assistance for damage or utility deposits when necessary 
349.15  to alleviate the emergency.  The county may require that 
349.16  assistance paid in the form of a damage deposit or a utility 
349.17  deposit, less any amount retained by the landlord to remedy a 
349.18  tenant's default in payment of rent or other funds due to the 
349.19  landlord under a rental agreement, or to restore the premises to 
349.20  the condition at the commencement of the tenancy, ordinary wear 
349.21  and tear excepted, be returned to the county when the individual 
349.22  vacates the premises or be paid to the recipient's new landlord 
349.23  as a vendor payment.  The county may require that assistance 
349.24  paid in the form of a utility deposit less any amount retained 
349.25  to satisfy outstanding utility costs be returned to the county 
349.26  when the person vacates the premises, or be paid for the 
349.27  person's new housing unit as a vendor payment.  The vendor 
349.28  payment of returned funds shall not be considered a new use of 
349.29  emergency assistance. 
349.30     (e)  [MOVING EXPENSES.] A county agency shall issue 
349.31  assistance for expenses incurred when a family must move to a 
349.32  different shelter according to clauses (1) to (4): 
349.33     (1) moving expenses include the cost to transport personal 
349.34  property belonging to a family, the cost for utility connection, 
349.35  and the cost for securing different shelter; 
349.36     (2) moving expenses must be paid only when the county 
350.1   agency determines that a move is cost-effective; 
350.2      (3) moving expenses must be paid at the request of an 
350.3   applicant, but only when destitution or threatened destitution 
350.4   exists; and 
350.5      (4) moving expenses must be paid when a county agency 
350.6   denies assistance to prevent an eviction because the county 
350.7   agency has determined that an applicant's anticipated income 
350.8   will not cover continued shelter obligation in paragraph (a). 
350.9      (f)  [HOME REPAIRS.] A county agency shall pay for repairs 
350.10  to the roof, foundation, wiring, heating system, chimney, and 
350.11  water and sewer system of a home that is owned and lived in by 
350.12  an applicant. 
350.13     The applicant shall document, and the county agency shall 
350.14  verify the need for and method of repair. 
350.15     The payment must be cost-effective in relation to the 
350.16  overall condition of the home and in relation to the cost and 
350.17  availability of alternative housing. 
350.18     (g)  [UTILITY COSTS.] Assistance for utility costs must be 
350.19  made when an otherwise eligible family has had a termination or 
350.20  is threatened with a termination of municipal water and sewer 
350.21  service, electric, gas or heating fuel service, or lacks wood 
350.22  when that is the heating source, subject to the conditions in 
350.23  clauses (1) and (2): 
350.24     (1) a county agency must not issue assistance unless the 
350.25  county agency receives confirmation from the utility provider 
350.26  that assistance combined with payment by the applicant will 
350.27  continue or restore the utility; and 
350.28     (2) a county agency shall not issue assistance for utility 
350.29  costs unless a family paid at least eight percent of the 
350.30  family's gross income toward utility costs due during the 
350.31  preceding 12 months. 
350.32     Clauses (1) and (2) must not be construed to prevent the 
350.33  issuance of assistance when a county agency must take immediate 
350.34  and temporary action necessary to protect the life or health of 
350.35  a child. 
350.36     (h)  [SPECIAL DIETS.] Effective January 1, 1998, a county 
351.1   shall pay for special diets or dietary items for MFIP-S 
351.2   participants.  Persons receiving emergency assistance funds for 
351.3   special diets or dietary items are also eligible to receive 
351.4   emergency assistance for shelter and utility emergencies, if 
351.5   otherwise eligible.  The need for special diets or dietary items 
351.6   must be prescribed by a licensed physician.  Costs for special 
351.7   diets shall be determined as percentages of the allotment for a 
351.8   one-person household under the Thrifty Food Plan as defined by 
351.9   the United States Department of Agriculture.  The types of diets 
351.10  and the percentages of the Thrifty Food Plan that are covered 
351.11  are as follows: 
351.12     (1) high protein diet, at least 80 grams daily, 25 percent 
351.13  of Thrifty Food Plan; 
351.14     (2) controlled protein diet, 40 to 60 grams and requires 
351.15  special products, 100 percent of Thrifty Food Plan; 
351.16     (3) controlled protein diet, less than 40 grams and 
351.17  requires special products, 125 percent of Thrifty Food Plan; 
351.18     (4) low cholesterol diet, 25 percent of Thrifty Food Plan; 
351.19     (5) high residue diet, 20 percent of Thrifty Food Plan; 
351.20     (6) pregnancy and lactation diet, 35 percent of Thrifty 
351.21  Food Plan; 
351.22     (7) gluten-free diet, 25 percent of Thrifty Food Plan; 
351.23     (8) lactose-free diet, 25 percent of Thrifty Food Plan; 
351.24     (9) antidumping diet, 15 percent of Thrifty Food Plan; 
351.25     (10) hypoglycemic diet, 15 percent of Thrifty Food Plan; or 
351.26     (11) ketogenic diet, 25 percent of Thrifty Food Plan. 
351.27     Sec. 90.  Minnesota Statutes 1997 Supplement, section 
351.28  256J.49, subdivision 4, is amended to read: 
351.29     Subd. 4.  [EMPLOYMENT AND TRAINING SERVICE PROVIDER.] 
351.30  "Employment and training service provider" means: 
351.31     (1) a public, private, or nonprofit employment and training 
351.32  agency certified by the commissioner of economic security under 
351.33  sections 268.0122, subdivision 3, and 268.871, subdivision 1, or 
351.34  is approved under section 256J.51 and is included in the county 
351.35  plan submitted under section 256J.50, subdivision 7; or 
351.36     (2) a public, private, or nonprofit agency that is not 
352.1   certified by the commissioner under clause (1), but with which a 
352.2   county has contracted to provide employment and training 
352.3   services and which is included in the county's plan submitted 
352.4   under section 256J.50, subdivision 7; or 
352.5      (3) a county agency, if the county is certified under 
352.6   clause (1) has opted to provide employment and training services 
352.7   and the county has indicated that fact in the plan submitted 
352.8   under section 256J.50, subdivision 7. 
352.9      Notwithstanding section 268.871, an employment and training 
352.10  services provider meeting this definition may deliver employment 
352.11  and training services under this chapter. 
352.12     Sec. 91.  Minnesota Statutes 1997 Supplement, section 
352.13  256J.50, subdivision 5, is amended to read: 
352.14     Subd. 5.  [PARTICIPATION REQUIREMENTS FOR SINGLE-PARENT AND 
352.15  TWO-PARENT CASES.] (a) A county must establish a uniform 
352.16  schedule for requiring participation by single parents.  
352.17  Mandatory participation must be required within six months of 
352.18  eligibility for cash assistance.  For two-parent cases, 
352.19  participation is required concurrent with the receipt of MFIP-S 
352.20  cash assistance. 
352.21     (b) Beginning January 1, 1998, with the exception of 
352.22  caregivers required to attend high school under the provisions 
352.23  of section 256J.54, subdivision 5, MFIP caregivers, upon 
352.24  completion of the secondary assessment, must develop an 
352.25  employment plan and participate in work activities. 
352.26     (c) Upon completion of the secondary assessment: 
352.27     (1) In single-parent families with no children under six 
352.28  years of age, the job counselor and the caregiver must develop 
352.29  an employment plan that includes 20 to 35 hours per week of work 
352.30  activities for the period January 1, 1998, to September 30, 
352.31  1998; 25 to 35 hours of work activities per week in federal 
352.32  fiscal year 1999; and 30 to 35 hours per week of work activities 
352.33  in federal fiscal year 2000 and thereafter. 
352.34     (2) In single-parent families with a child under six years 
352.35  of age, the job counselor and the caregiver must develop an 
352.36  employment plan that includes 20 to 35 hours per week of work 
353.1   activities. 
353.2      (3) In two-parent families, the job counselor and the 
353.3   caregivers must develop employment plans which result in a 
353.4   combined total of at least 55 hours per week of work activities. 
353.5      Sec. 92.  Minnesota Statutes 1997 Supplement, section 
353.6   256J.50, is amended by adding a subdivision to read: 
353.7      Subd. 10.  [REQUIRED NOTIFICATION TO VICTIMS OF DOMESTIC 
353.8   VIOLENCE.] County agencies and their contractors must provide 
353.9   universal notification to all applicants and recipients of 
353.10  MFIP-S that: 
353.11     (1) referrals to counseling and supportive services are 
353.12  available for victims of domestic violence; 
353.13     (2) nonpermanent resident battered individuals married to 
353.14  United States citizens or permanent residents may be eligible to 
353.15  petition for permanent residency under the federal Violence 
353.16  Against Women Act, and that referrals to appropriate legal 
353.17  services are available; 
353.18     (3) victims of domestic violence are exempt from the 
353.19  60-month limit on assistance while the individual is complying 
353.20  with an approved safety plan, as defined in section 256J.49, 
353.21  subdivision 11; and 
353.22     (4) victims of domestic violence may choose to be exempt or 
353.23  deferred from work requirements for up to 12 months while the 
353.24  individual is complying with an approved safety plan as defined 
353.25  in section 256J.49, subdivision 11.  
353.26     Notification must be in writing and orally at the time of 
353.27  application and recertification, when the individual is referred 
353.28  to the title IV-D child support agency, and at the beginning of 
353.29  any job training or work placement assistance program. 
353.30     Sec. 93.  Minnesota Statutes 1997 Supplement, section 
353.31  256J.50, is amended by adding a subdivision to read: 
353.32     Subd. 11.  [COORDINATION.] The county agency and the county 
353.33  agency's employment and training providers must consult and 
353.34  coordinate with other providers of employment and training 
353.35  services to identify existing resources, in order to prevent 
353.36  duplication of services, to assure that other programs' services 
354.1   are available to enable participants to achieve 
354.2   self-sufficiency, and to assure that costs for these other 
354.3   services for which participants are eligible are not incurred by 
354.4   MFIP-S.  At a minimum, the county agency and its providers must 
354.5   coordinate with Jobs Training and Partnership Act providers and 
354.6   with any other relevant employment, training, and education 
354.7   programs in the county. 
354.8      Sec. 94.  Minnesota Statutes 1997 Supplement, section 
354.9   256J.515, is amended to read: 
354.10     256J.515 [OVERVIEW OF EMPLOYMENT AND TRAINING SERVICES.] 
354.11     During the first meeting with participants, job counselors 
354.12  must ensure that an overview of employment and training services 
354.13  is provided that:  (1) stresses the necessity and opportunity of 
354.14  immediate employment,; (2) outlines the job search resources 
354.15  offered,; (3) outlines education or training opportunities 
354.16  available; (4) describes the range of work activities, including 
354.17  activities under section 256J.49, subdivision 13, clause (18), 
354.18  that are allowable under MFIP-S to meet the individual needs of 
354.19  participants; (5) explains the requirements to comply with an 
354.20  employment plan and; (6) explains the consequences for failing 
354.21  to comply,; and (7) explains the services that are available to 
354.22  support job search and work and education. 
354.23     Sec. 95.  Minnesota Statutes 1997 Supplement, section 
354.24  256J.52, subdivision 4, is amended to read: 
354.25     Subd. 4.  [SECONDARY ASSESSMENT.] (a) The job counselor 
354.26  must conduct a secondary assessment for those participants who: 
354.27     (1) in the judgment of the job counselor, have barriers to 
354.28  obtaining employment that will not be overcome with a job search 
354.29  support plan under subdivision 3; 
354.30     (2) have completed eight weeks of job search under 
354.31  subdivision 3 without obtaining suitable employment; or 
354.32     (3) have not received a secondary assessment, are working 
354.33  at least 20 hours per week, and the participant, job counselor, 
354.34  or county agency requests a secondary assessment; or 
354.35     (4) have an existing job search plan or employment plan 
354.36  developed for another program or are already involved in 
355.1   training or education activities under section 256J.55, 
355.2   subdivision 5. 
355.3      (b) In the secondary assessment the job counselor must 
355.4   evaluate the participant's skills and prior work experience, 
355.5   family circumstances, interests and abilities, need for 
355.6   preemployment activities, supportive or educational services, 
355.7   and the extent of any barriers to employment.  The job counselor 
355.8   must use the information gathered through the secondary 
355.9   assessment to develop an employment plan under subdivision 5. 
355.10     (c) The provider shall make available to participants 
355.11  information regarding additional vendors or resources which 
355.12  provide employment and training services that may be available 
355.13  to the participant under a plan developed under this section.  
355.14  The information must include a brief summary of services 
355.15  provided and related performance indicators.  Performance 
355.16  indicators must include, but are not limited to, the average 
355.17  time to complete program offerings, placement rates, entry and 
355.18  average wages, and retention rates.  To be included in the 
355.19  information given to participants, a vendor or resource must 
355.20  provide counties with relevant information in the format 
355.21  required by the county. 
355.22     Sec. 96.  Minnesota Statutes 1997 Supplement, section 
355.23  256J.52, is amended by adding a subdivision to read: 
355.24     Subd. 8.  [ADMINISTRATIVE SUPPORT FOR POSTEMPLOYMENT 
355.25  EDUCATION AND TRAINING.] After a caregiver receiving MFIP-S has 
355.26  been employed for six consecutive months, during which time the 
355.27  caregiver works on average more than 20 hours per week, the 
355.28  caregiver's job counselor shall inform the caregiver that the 
355.29  caregiver may request a secondary assessment described in 
355.30  subdivision 4 and shall provide information about: 
355.31     (1) part-time education and training options available to 
355.32  the caregiver; and 
355.33     (2) child care and transportation resources available to 
355.34  support postemployment education and training. 
355.35     Sec. 97.  Minnesota Statutes 1997 Supplement, section 
355.36  256J.52, is amended by adding a subdivision to read: 
356.1      Subd. 9.  [TRAINING CONCURRENT WITH EMPLOYMENT.] An MFIP 
356.2   caregiver who is meeting the minimum hourly work participation 
356.3   requirements under the Personal Responsibility and Work 
356.4   Opportunity Reconciliation Act of 1996 through employment must 
356.5   be allowed to meet any additional MFIP-S hourly work 
356.6   participation requirements through training or education that 
356.7   meets the requirements of section 256J.53. 
356.8      Sec. 98.  Minnesota Statutes 1997 Supplement, section 
356.9   256J.54, subdivision 2, is amended to read: 
356.10     Subd. 2.  [RESPONSIBILITY FOR ASSESSMENT AND EMPLOYMENT 
356.11  PLAN.] For caregivers who are under age 18 without a high school 
356.12  diploma or its equivalent, the assessment under subdivision 1 
356.13  and the employment plan under subdivision 3 must be completed by 
356.14  the social services agency under section 257.33.  For caregivers 
356.15  who are age 18 or 19 without a high school diploma or its 
356.16  equivalent, the assessment under subdivision 1 and the 
356.17  employment plan under subdivision 3 must be completed by the job 
356.18  counselor.  The social services agency or the job counselor 
356.19  shall consult with representatives of educational agencies that 
356.20  are required to assist in developing educational plans under 
356.21  section 126.235. 
356.22     Sec. 99.  Minnesota Statutes 1997 Supplement, section 
356.23  256J.54, subdivision 3, is amended to read: 
356.24     Subd. 3.  [EDUCATIONAL OPTION DEVELOPED.] If the job 
356.25  counselor or county social services agency identifies an 
356.26  appropriate educational option for a caregiver under the age of 
356.27  20 without a high school diploma or its equivalent, it the job 
356.28  counselor or agency must develop an employment plan which 
356.29  reflects the identified option.  The plan must specify that 
356.30  participation in an educational activity is required, what 
356.31  school or educational program is most appropriate, the services 
356.32  that will be provided, the activities the caregiver will take 
356.33  part in, including child care and supportive services, the 
356.34  consequences to the caregiver for failing to participate or 
356.35  comply with the specified requirements, and the right to appeal 
356.36  any adverse action.  The employment plan must, to the extent 
357.1   possible, reflect the preferences of the caregiver. 
357.2      Sec. 100.  Minnesota Statutes 1997 Supplement, section 
357.3   256J.54, subdivision 4, is amended to read: 
357.4      Subd. 4.  [NO APPROPRIATE EDUCATIONAL OPTION.] If the job 
357.5   counselor determines that there is no appropriate educational 
357.6   option for a caregiver who is age 18 or 19 without a high school 
357.7   diploma or its equivalent, the job counselor must develop an 
357.8   employment plan, as defined in section 256J.49, subdivision 5, 
357.9   for the caregiver.  If the county social services agency 
357.10  determines that school attendance is not appropriate for a 
357.11  caregiver under age 18 without a high school diploma or its 
357.12  equivalent, the county agency shall refer the caregiver to 
357.13  social services for services as provided in section 257.33. 
357.14     Sec. 101.  Minnesota Statutes 1997 Supplement, section 
357.15  256J.54, subdivision 5, is amended to read: 
357.16     Subd. 5.  [SCHOOL ATTENDANCE REQUIRED.] (a) Notwithstanding 
357.17  the provisions of section 256J.56, minor parents, or 18- or 
357.18  19-year-old parents without a high school diploma or its 
357.19  equivalent must attend school unless: 
357.20     (1) transportation services needed to enable the caregiver 
357.21  to attend school are not available; 
357.22     (2) appropriate child care services needed to enable the 
357.23  caregiver to attend school are not available; 
357.24     (3) the caregiver is ill or incapacitated seriously enough 
357.25  to prevent attendance at school; or 
357.26     (4) the caregiver is needed in the home because of the 
357.27  illness or incapacity of another member of the household.  This 
357.28  includes a caregiver of a child who is younger than six weeks of 
357.29  age. 
357.30     (b) The caregiver must be enrolled in a secondary school 
357.31  and meeting the school's attendance requirements.  The county, 
357.32  social service agency, or job counselor must verify at least 
357.33  once per quarter that the caregiver is meeting the school's 
357.34  attendance requirements.  An enrolled caregiver is considered to 
357.35  be meeting the attendance requirements when the school is not in 
357.36  regular session, including during holiday and summer breaks. 
358.1      Sec. 102.  Minnesota Statutes 1997 Supplement, section 
358.2   256J.55, subdivision 5, is amended to read: 
358.3      Subd. 5.  [OPTION TO UTILIZE EXISTING PLAN.] With job 
358.4   counselor approval, if a participant is already complying with a 
358.5   job search support or employment plan that was developed for a 
358.6   different program or is already involved in education or 
358.7   training activities, the participant may utilize continue that 
358.8   plan and that program's services, subject to the requirements of 
358.9   subdivision 3, to be in compliance with sections 256J.52 to 
358.10  256J.57 so long as or activity if the plan meets, or is modified 
358.11  to meet, the requirements of those sections 256J.52 to 256J.57, 
358.12  and if the participant is concurrently employed and the 
358.13  combination of the hours spent in education or training and 
358.14  employment meets the hourly participation requirements.  The 
358.15  participant is not required to be employed if the number of 
358.16  hours per week the participant is in education or training meets 
358.17  the hourly work participation requirements. 
358.18     Sec. 103.  Minnesota Statutes 1997 Supplement, section 
358.19  256J.56, is amended to read: 
358.20     256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 
358.21  EXEMPTIONS.] 
358.22     (a) An MFIP-S caregiver is exempt from the requirements of 
358.23  sections 256J.52 to 256J.55 if the caregiver belongs to any of 
358.24  the following groups: 
358.25     (1) individuals who are age 60 or older; 
358.26     (2) individuals who are suffering from a professionally 
358.27  certified permanent or temporary illness, injury, or incapacity 
358.28  which is expected to continue for more than 30 days and which 
358.29  prevents the person from obtaining or retaining employment.  
358.30  Persons in this category with a temporary illness, injury, or 
358.31  incapacity must be reevaluated at least quarterly; 
358.32     (3) caregivers whose presence in the home is required 
358.33  because of the professionally certified illness or incapacity of 
358.34  another member in the assistance unit, a relative in the 
358.35  household, or a foster child in the household; 
358.36     (4) women who are pregnant, if the pregnancy has resulted 
359.1   in a professionally certified incapacity that prevents the woman 
359.2   from obtaining or retaining employment; 
359.3      (5) caregivers of a child under the age of one year who 
359.4   personally provide full-time care for the child.  This exemption 
359.5   may be used for only 12 months in a lifetime.  In two-parent 
359.6   households, only one parent or other relative may qualify for 
359.7   this exemption; 
359.8      (6) individuals who are single parents, or one parent in a 
359.9   two-parent family, employed at least 40 hours per week or at 
359.10  least 30 hours per week and engaged in job search for at least 
359.11  an additional ten 35 hours per week; 
359.12     (7) individuals experiencing a personal or family crisis 
359.13  that makes them incapable of participating in the program, as 
359.14  determined by the county agency.  If the participant does not 
359.15  agree with the county agency's determination, the participant 
359.16  may seek professional certification, as defined in section 
359.17  256J.08, that the participant is incapable of participating in 
359.18  the program. 
359.19     Persons in this exemption category must be reevaluated 
359.20  every 60 days; or 
359.21     (8) second parents in two-parent families, provided the 
359.22  second parent is employed for 20 or more hours per week, 
359.23  provided the first parent is employed at least 35 hours per week.
359.24     A caregiver who is exempt under clause (5) must enroll in 
359.25  and attend an early childhood and family education class, a 
359.26  parenting class, or some similar activity, if available, during 
359.27  the period of time the caregiver is exempt under this section.  
359.28  Notwithstanding section 256J.46, failure to attend the required 
359.29  activity shall not result in the imposition of a sanction. 
359.30     (b) The county agency must provide employment and training 
359.31  services to MFIP-S caregivers who are exempt under this section, 
359.32  but who volunteer to participate.  Exempt volunteers may request 
359.33  approval for any work activity under section 256J.49, 
359.34  subdivision 13.  The hourly participation requirements for 
359.35  nonexempt caregivers under section 256J.50, subdivision 5, do 
359.36  not apply to exempt caregivers who volunteer to participate. 
360.1      Sec. 104.  Minnesota Statutes 1997 Supplement, section 
360.2   256J.57, subdivision 1, is amended to read: 
360.3      Subdivision 1.  [GOOD CAUSE FOR FAILURE TO COMPLY.] The 
360.4   county agency shall not impose the sanction under section 
360.5   256J.46 if it determines that the participant has good cause for 
360.6   failing to comply with the requirements of section 256J.45 or 
360.7   sections 256J.52 to 256J.55.  Good cause exists when: 
360.8      (1) appropriate child care is not available; 
360.9      (2) the job does not meet the definition of suitable 
360.10  employment; 
360.11     (3) the participant is ill or injured; 
360.12     (4) a family member of the assistance unit, a relative in 
360.13  the household, or a foster child in the household is ill and 
360.14  needs care by the participant that prevents the participant from 
360.15  complying with the job search support plan or employment plan; 
360.16     (5) the parental caregiver is unable to secure necessary 
360.17  transportation; 
360.18     (6) the parental caregiver is in an emergency situation 
360.19  that prevents compliance with the job search support plan or 
360.20  employment plan; 
360.21     (7) the schedule of compliance with the job search support 
360.22  plan or employment plan conflicts with judicial proceedings; 
360.23     (8) the parental caregiver is already participating in 
360.24  acceptable work activities; 
360.25     (9) the employment plan requires an educational program for 
360.26  a caregiver under age 20, but the educational program is not 
360.27  available; 
360.28     (10) activities identified in the job search support plan 
360.29  or employment plan are not available; 
360.30     (11) the parental caregiver is willing to accept suitable 
360.31  employment, but suitable employment is not available; or 
360.32     (12) the parental caregiver documents other verifiable 
360.33  impediments to compliance with the job search support plan or 
360.34  employment plan beyond the parental caregiver's control. 
360.35     Sec. 105.  Minnesota Statutes 1997 Supplement, section 
360.36  256J.645, subdivision 3, is amended to read: 
361.1      Subd. 3.  [FUNDING.] If the commissioner and an Indian 
361.2   tribe are parties to an agreement under this subdivision, the 
361.3   agreement may annually provide to the Indian tribe the funding 
361.4   amount in clause (1) or (2): 
361.5      (1) if the Indian tribe operated a tribal STRIDE program 
361.6   during state fiscal year 1997, the amount to be provided is the 
361.7   amount the Indian tribe received from the state for operation of 
361.8   its tribal STRIDE program in state fiscal year 1997, except that 
361.9   the amount provided for a fiscal year may increase or decrease 
361.10  in the same proportion that the total amount of state and 
361.11  federal funds available for MFIP-S employment and training 
361.12  services increased or decreased that fiscal year; or 
361.13     (2) if the Indian tribe did not operate a tribal STRIDE 
361.14  program during state fiscal year 1997, the commissioner may 
361.15  provide to the Indian tribe for the first year of operations the 
361.16  amount determined by multiplying the state allocation for MFIP-S 
361.17  employment and training services to each county agency in the 
361.18  Indian tribe's service delivery area by the percentage of MFIP-S 
361.19  recipients in that county who were members of the Indian tribe 
361.20  during the previous state fiscal year.  The resulting amount 
361.21  shall also be the amount that the commissioner may provide to 
361.22  the Indian tribe annually thereafter through an agreement under 
361.23  this subdivision, except that the amount provided for a fiscal 
361.24  year may increase or decrease in the same proportion that the 
361.25  total amount of state and federal funds available for MFIP-S 
361.26  employment and training services increased or decreased that 
361.27  fiscal year. 
361.28     Sec. 106.  Minnesota Statutes 1997 Supplement, section 
361.29  256J.74, subdivision 2, is amended to read: 
361.30     Subd. 2.  [CONCURRENT ELIGIBILITY, LIMITATIONS.] A county 
361.31  agency must not count an applicant or participant as a member of 
361.32  more than one assistance unit in a given payment month, except 
361.33  as provided in clauses (1) and (2). 
361.34     (1) A participant who is a member of an assistance unit in 
361.35  this state is eligible to be included in a second assistance 
361.36  unit in the first full month that after the month the 
362.1   participant leaves the first assistance unit and lives with 
362.2   a joins the second assistance unit. 
362.3      (2) An applicant whose needs are met through foster care 
362.4   that is reimbursed under title IV-E of the Social Security Act 
362.5   for the first part of an application month is eligible to 
362.6   receive assistance for the remaining part of the month in which 
362.7   the applicant returns home.  Title IV-E payments and adoption 
362.8   assistance payments must be considered prorated payments rather 
362.9   than a duplication of MFIP-S need. 
362.10     Sec. 107.  Minnesota Statutes 1997 Supplement, section 
362.11  256J.74, is amended by adding a subdivision to read: 
362.12     Subd. 5.  [FOOD STAMPS.] For any month an individual 
362.13  receives Food Stamp Program benefits, the individual is not 
362.14  eligible for the MFIP-S food portion of assistance, except as 
362.15  provided under section 256J.28, subdivision 5. 
362.16     Sec. 108.  [256J.77] [AGING OF CASH BENEFITS.] 
362.17     Cash benefits under chapters 256D, 256J, and 256K by 
362.18  warrants or electronic benefit transfer that have not been 
362.19  accessed within 90 days of issuance shall be canceled.  Cash 
362.20  benefits may be replaced after they are canceled, for up to one 
362.21  year after the date of issuance, if failure to do so would place 
362.22  the client or family at risk.  For purposes of this section, 
362.23  "accessed" means cashing a warrant or making at least one 
362.24  withdrawal from benefits deposited in an electronic benefit 
362.25  account. 
362.26     Sec. 109.  Minnesota Statutes 1997 Supplement, section 
362.27  256K.03, subdivision 5, is amended to read: 
362.28     Subd. 5.  [EXEMPTION CATEGORIES.] (a) The applicant will be 
362.29  exempt from the job search requirements and development of a job 
362.30  search plan and an employability development plan under 
362.31  subdivisions 3, 4, and 8 if the applicant belongs to any of the 
362.32  following groups: 
362.33     (1) caregivers under age 20 who have not completed a high 
362.34  school education and are attending high school on a full-time 
362.35  basis; 
362.36     (2) individuals who are age 60 or older; 
363.1      (3) (2) individuals who are suffering from a professionally 
363.2   certified permanent or temporary illness, injury, or incapacity 
363.3   which is expected to continue for more than 30 days and which 
363.4   prevents the person from obtaining or retaining employment.  
363.5   Persons in this category with a temporary illness, injury, or 
363.6   incapacity must be reevaluated at least quarterly; 
363.7      (4) (3) caregivers whose presence in the home is needed 
363.8   because of the professionally certified illness or incapacity of 
363.9   another member in the assistance unit, a relative in the 
363.10  household, or a foster child in the household; 
363.11     (5) (4) women who are pregnant, if it the pregnancy has 
363.12  been medically verified resulted in a professionally certified 
363.13  incapacity that the child is expected to be born within the next 
363.14  six months prevents the woman from obtaining and retaining 
363.15  employment; 
363.16     (6) (5) caregivers or other caregiver relatives of a child 
363.17  under the age of three one year who personally provide full-time 
363.18  care for the child.  This exemption may be used for only 12 
363.19  months in a lifetime.  In two-parent households, only one parent 
363.20  or other relative may qualify for this exemption; 
363.21     (7) (6) individuals who are single parents or one parent in 
363.22  a two-parent family employed at least 30 35 hours per week; 
363.23     (8) individuals for whom participation would require a 
363.24  round trip commuting time by available transportation of more 
363.25  than two hours, excluding transporting of children for child 
363.26  care; 
363.27     (9) individuals for whom lack of proficiency in English is 
363.28  a barrier to employment, provided such individuals are 
363.29  participating in an intensive program which lasts no longer than 
363.30  six months and is designed to remedy their language deficiency; 
363.31     (10) individuals who, because of advanced age or lack of 
363.32  ability, are incapable of gaining proficiency in English, as 
363.33  determined by the county social worker, shall continue to be 
363.34  exempt under this subdivision and are not subject to the 
363.35  requirement that they be participating in a language program; 
363.36     (11) (7) individuals under such duress that they are 
364.1   incapable of participating in the program, as determined by the 
364.2   county social worker experiencing a personal or family crisis 
364.3   that makes them incapable of participating in the program, as 
364.4   determined by the county agency.  If the participant does not 
364.5   agree with the county agency's determination, the participant 
364.6   may seek professional certification, as defined in section 
364.7   256J.08, that the participant is incapable of participating in 
364.8   the program.  Persons in this exemption category must be 
364.9   reevaluated every 60 days; or 
364.10     (12) individuals in need of refresher courses for purposes 
364.11  of obtaining professional certification or licensure. 
364.12     (b) In a two-parent family, only one caregiver may be 
364.13  exempted under paragraph (a), clauses (4) and (6). 
364.14     (8) second parents in two-parent families employed for 20 
364.15  or more hours per week provided the first parent is employed at 
364.16  least 35 hours per week. 
364.17     (b) A caregiver who is exempt under clause (5) must enroll 
364.18  in and attend an early childhood and family education class, a 
364.19  parenting class, or some similar activity, if available, during 
364.20  the period of time the caregiver is exempt under this section.  
364.21  Notwithstanding section 256J.46, failure to attend the required 
364.22  activity shall not result in the imposition of a sanction. 
364.23     Sec. 110.  Minnesota Statutes 1996, section 268.88, is 
364.24  amended to read: 
364.25     268.88 [LOCAL SERVICE UNIT PLANS.] 
364.26     (a) By April 15, 1991 1999, and by April 15 of each second 
364.27  year thereafter, local service units shall prepare and submit to 
364.28  the commissioner a plan that covers the next two state fiscal 
364.29  years.  At least 30 days prior to submission of the plan, the 
364.30  local service unit shall solicit comments from the public on the 
364.31  contents of the proposed plan.  The commissioner shall notify 
364.32  each local service unit within 60 days of receipt of its plan 
364.33  that the plan has been approved or disapproved.  The plan must 
364.34  include: 
364.35     (1) a statement of objectives for the employment and 
364.36  training services the local service unit administers; 
365.1      (2) the establishment of job placement and job retention 
365.2   goals, the establishment of public assistance caseload reduction 
365.3   goals, and the strategies and programs that will be used to 
365.4   achieve these goals; 
365.5      (3) a statement of whether the goals from the preceding 
365.6   year were met and an explanation if the local service unit 
365.7   failed to meet the goals; 
365.8      (4) the amount proposed to be allocated to each employment 
365.9   and training service; 
365.10     (5) the proposed types of employment and training services 
365.11  the local service unit plans to utilize; 
365.12     (6) a description of how the local service unit will use 
365.13  funds provided under section 256.736 to meet the requirements of 
365.14  that section.  The description must include the two work 
365.15  programs required by section 256.736, subdivision 10, paragraph 
365.16  (a), clause (13), what services will be provided, number of 
365.17  clients served, per service expenditures, type of clients 
365.18  served, and projected outcomes chapter 256J to meet the 
365.19  requirements of that chapter.  The description must include what 
365.20  services will be provided, per service expenditures, an estimate 
365.21  of how many employment and training slots the local service unit 
365.22  will provide, how many dollars the local service unit will 
365.23  provide per slot per provider, how many participants per slot, 
365.24  an estimate of the ratio of participants per job counselor, and 
365.25  proposed uses for any residual funds not included in slot 
365.26  allocations to providers; 
365.27     (7) a report on the use of wage subsidies, grant 
365.28  diversions, community investment programs, and other services 
365.29  administered under this chapter; 
365.30     (8) a performance review of the employment and training 
365.31  service providers delivering employment and training services 
365.32  for the local service unit; 
365.33     (9) a copy of any contract between the local service unit 
365.34  and an employment and training service provider including 
365.35  expected outcomes and service levels for public assistance 
365.36  clients; and 
366.1      (10) a copy of any other agreements between educational 
366.2   institutions, family support services, and child care providers; 
366.3   and 
366.4      (11) a description of how the local service unit ensures 
366.5   compliance with section 256J.06, requiring community involvement 
366.6   in the administration of MFIP-S. 
366.7      (b) In counties with a city of the first class, the county 
366.8   and the city shall develop and submit a joint plan.  The plan 
366.9   may not be submitted until agreed to by both the city and the 
366.10  county.  The plan must provide for the direct allocation of 
366.11  employment and training money to the city and the county unless 
366.12  waived by either.  If the county and the city cannot concur on a 
366.13  plan, the commissioner shall resolve their dispute.  In counties 
366.14  in which a federally recognized Indian tribe is operating an 
366.15  employment and training program under an agreement with the 
366.16  commissioner of human services, the plan must provide that the 
366.17  county will coordinate its employment and training programs, 
366.18  including developing a system for referrals, sanctions, and the 
366.19  provision of supporting services such as access to child care 
366.20  funds and transportation with programs operated by the Indian 
366.21  tribe.  The plan may not be given final approval by the 
366.22  commissioner until the tribal unit and county have submitted 
366.23  written agreement on these provisions in the plan.  If the 
366.24  county and Indian tribe cannot agree on these provisions, the 
366.25  local service unit shall notify the commissioner of economic 
366.26  security and the commissioners of economic security and human 
366.27  services shall resolve the dispute.  
366.28     (c) The commissioner may withhold the distribution of 
366.29  employment and training money from a local service unit that 
366.30  does not submit a plan to the commissioner by the date set by 
366.31  this section, and shall withhold the distribution of employment 
366.32  and training money from a local service unit whose plan has been 
366.33  disapproved by the commissioner until an acceptable amended plan 
366.34  has been submitted.  
366.35     (d) Beginning April 15, 1992, and by April 15 of each 
366.36  second year thereafter, local service units must prepare and 
367.1   submit to the commissioner an interim year plan update that 
367.2   deals with performance in that state fiscal year and changes 
367.3   anticipated for the second year of the biennium.  The update 
367.4   must include information about employment and training programs 
367.5   addressed in the local service unit's two-year plan and shall be 
367.6   completed in accordance with criteria established by the 
367.7   commissioner. 
367.8      Sec. 111.  Laws 1997, chapter 203, article 9, section 21, 
367.9   is amended to read: 
367.10     Sec. 21.  [INELIGIBILITY FOR STATE FUNDED PROGRAMS.] 
367.11     (a) Beginning July 1, 1999 2000, the following persons will 
367.12  be ineligible for general assistance and general assistance 
367.13  medical care under Minnesota Statutes, chapter 256D, group 
367.14  residential housing under Minnesota Statutes, chapter 256I, and 
367.15  MFIP-S assistance under Minnesota Statutes, chapter 256J, funded 
367.16  with state money: 
367.17     (1) persons who are terminated from or denied Supplemental 
367.18  Security Income due to the 1996 changes in the federal law 
367.19  making persons whose alcohol or drug addiction is a material 
367.20  factor contributing to the person's disability ineligible for 
367.21  Supplemental Security Income, and are eligible for general 
367.22  assistance under Minnesota Statutes, section 256D.05, 
367.23  subdivision 1, paragraph (a), clause (17), general assistance 
367.24  medical care under Minnesota Statutes, chapter 256D, or group 
367.25  residential housing under Minnesota Statutes, chapter 256I; 
367.26     (2) legal noncitizens who are ineligible for Supplemental 
367.27  Security Income due to the 1996 changes in federal law making 
367.28  certain noncitizens ineligible for these programs due to their 
367.29  noncitizen status; and 
367.30     (3) legal noncitizens who are eligible for MFIP-S 
367.31  assistance, either the cash assistance portion or the food 
367.32  assistance portion, funded entirely with state money. 
367.33     (b) State money that remains unspent on June 30, 1999, due 
367.34  to changes in federal law enacted after May 12, 1997, that 
367.35  reduce state spending for legal noncitizens or for persons whose 
367.36  alcohol or drug addiction is a material factor contributing to 
368.1   the person's disability, or enacted after February 1, 1998, that 
368.2   reduce state spending for food benefits for legal noncitizens 
368.3   shall not cancel and shall be deposited in the TANF reserve 
368.4   account. 
368.5      Sec. 112.  Laws 1997, chapter 248, section 46, as amended 
368.6   by Laws 1997, First Special Session chapter 5, section 10, is 
368.7   amended to read: 
368.8      Sec. 46.  [UNLICENSED CHILD CARE PROVIDERS; INTERIM 
368.9   EXPANSION.] 
368.10     (a) Notwithstanding Minnesota Statutes, section 245A.03, 
368.11  subdivision 2, clause (2), until June 30, 1999, nonresidential 
368.12  child care programs or services that are provided by an 
368.13  unrelated individual to persons from two or three other 
368.14  unrelated families are excluded from the licensure provisions of 
368.15  Minnesota Statutes, chapter 245A, provided that: 
368.16     (1) the individual provides services at any one time to no 
368.17  more than four children who are unrelated to the individual; 
368.18     (2) no more than two of the children are under two years of 
368.19  age; and 
368.20     (3) the total number of children being cared for at any one 
368.21  time does not exceed five. 
368.22     (b) Paragraph (a), clauses (1) to (3), do not apply to: 
368.23     (1) nonresidential programs that are provided by an 
368.24  unrelated individual to persons from a single related family.; 
368.25     (2) a child care provider whose child care services meet 
368.26  the criteria in paragraph (a), clauses (1) to (3), but who 
368.27  chooses to apply for licensure; 
368.28     (3) a child care provider who, as an applicant for 
368.29  licensure or as a license holder, has received a license denial 
368.30  under Minnesota Statutes, section 245A.05, a fine under 
368.31  Minnesota Statutes, section 245A.06, or a sanction under 
368.32  Minnesota Statutes, section 245A.07, from the commissioner that 
368.33  has not been reversed on appeal; or 
368.34     (4) a child care provider, or a child care provider who has 
368.35  a household member who, as a result of a licensing process, has 
368.36  a disqualification under Minnesota Statutes, chapter 245A, that 
369.1   has not been set aside by the commissioner. 
369.2      Sec. 113.  [REPORT REQUIRED.] 
369.3      Beginning January 1, 1999, the commissioner shall report 
369.4   annually to the legislature on January 15 on the percent, for 
369.5   each of the four quarters of the immediate preceding year, of 
369.6   the MFIP-S caseload participants who are exempt from work under 
369.7   the provisions of Minnesota Statutes, section 256J.56, clause 
369.8   (2) or (3). 
369.9      Sec. 114.  [REPORT; NONCERTIFIED PROVIDERS.] 
369.10     Beginning January 15, 1999, the commissioner of economic 
369.11  security, in conjunction with the commissioner of human 
369.12  services, shall report annually on the use in MFIP-S of 
369.13  employment and training providers.  The report shall include 
369.14  information on the number and types of noncertified providers. 
369.15     Sec. 115.  [SCREENING AND REFERRAL GUIDELINES FOR 
369.16  PARTICIPANTS WITH DRUG AND ALCOHOL PROBLEMS.] 
369.17     The commissioner of human services shall develop guidelines 
369.18  for county agencies and their contractors to identify 
369.19  participants who have alcohol or drug problems that require 
369.20  treatment.  The guidelines must provide for: 
369.21     (1) the use of simplified written and verbal screening 
369.22  tools as part of the intake process; 
369.23     (2) referral for clinical assessment and appropriate 
369.24  treatment, if needed; and 
369.25     (3) training for caseworkers to administer the screening 
369.26  protocols and refer participants to services. 
369.27     Sec. 116.  [EBT TRANSACTION COSTS; APPROVAL FROM 
369.28  LEGISLATURE.] 
369.29     The commissioner of human services shall request and 
369.30  receive approval from the legislature before adjusting the 
369.31  payment to retailers for electronic benefit transfer transaction 
369.32  costs. 
369.33     Sec. 117.  [STUDY; MFIP-S EXIT LEVEL; ELIMINATION OF 
369.34  SHELTER EXPENSE DEDUCTION.] 
369.35     The commissioner shall consider recommending to the 1999 
369.36  legislature: 
370.1      (1) adjustments to the MFIP-S earned income disregard, 
370.2   family wage level, or transitional standard, which will ensure 
370.3   that participants do not lose eligibility for MFIP-S until their 
370.4   income reaches at least 120 percent of the 1999 federal poverty 
370.5   level; and 
370.6      (2) proposals responding to the effect of the elimination 
370.7   of the food stamp shelter expense deduction on food spending and 
370.8   food sufficiency of MFIP-S families paying greater than 50 
370.9   percent of their income toward housing costs.  The 
370.10  commissioner's recommendations should include information on the 
370.11  number of families losing greater than 20 percent of their food 
370.12  benefits, the number losing between ten percent and 20 percent 
370.13  and the number losing zero percent to ten percent, and the 
370.14  characteristics of families receiving less food assistance under 
370.15  MFIP-S.  The commissioner may collaborate with private or 
370.16  nonprofit entities, if necessary, to provide this information. 
370.17     Sec. 118.  [REPEALER.] 
370.18     (a) Minnesota Statutes 1997 Supplement, section 256J.28, 
370.19  subdivision 4, is repealed effective January 1, 1998.  
370.20     (b) Minnesota Statutes 1997 Supplement, section 256J.25; 
370.21  and Laws 1997, chapter 85, article 1, sections 61 and 71, and 
370.22  article 3, section 55, are repealed. 
370.23     (c) Minnesota Statutes 1996, sections 256.031, subdivisions 
370.24  1, 2, 3, and 4; 256.032; 256.033, subdivisions 2, 3, 4, 5, and 
370.25  6; 256.034; 256.035; 256.036; 256.0361; 256.047; 256.0475; 
370.26  256.048; and 256.049; and Minnesota Statutes 1997 Supplement, 
370.27  sections 256.031, subdivisions 5 and 6; 256.033, subdivisions 1 
370.28  and 1a; 256B.062; 256J.32, subdivision 5; and 256J.34, 
370.29  subdivision 5, are repealed effective July 1, 1998. 
370.30     (d) Minnesota Rules (Exempt), parts 9500.9100; 9500.9110; 
370.31  9500.9120; 9500.9130; 9500.9140; 9500.9150; 9500.9160; 
370.32  9500.9170; 9500.9180; 9500.9190; 9500.9200; 9500.9210; and 
370.33  9500.9220, are repealed effective July 1, 1998. 
370.34     Sec. 119.  [EFFECTIVE DATES.] 
370.35     (a) Sections 2, 4, 7, 8, 19, 90, 95, and 102 are effective 
370.36  the day following final enactment. 
371.1      (b) Section 9 is effective June 1, 1998. 
371.2      (c) Section 10 is effective October 1, 1998. 
371.3      (d) Section 50 is effective for all applications for MFIP-S 
371.4   made on or after July 1, 1998. 
371.5      (e) Section 12 is effective March 30, 1998. 
371.6      (f) Section 51 is effective for MFIP-S applications 
371.7   received on or after January 1, 1999, and for all MFIP-S 
371.8   recertifications occurring on or after January 1, 1999. 
371.9                              ARTICLE 7 
371.10                     REGIONAL TREATMENT CENTERS 
371.11     Section 1.  [CONVEYANCE OF STATE LAND; ANOKA COUNTY.] 
371.12     Subdivision 1.  [CONVEYANCE AUTHORIZED.] Notwithstanding 
371.13  Minnesota Statutes, sections 92.45, 94.09, 94.10, and 103F.335, 
371.14  subdivision 3, or any other law to the contrary, the 
371.15  commissioner of administration may convey all, or any part of, 
371.16  the land and associated buildings described in subdivision 3 to 
371.17  Anoka county after the commissioner of human services declares 
371.18  said property surplus to its needs. 
371.19     Subd. 2.  [FORM.] (a) The conveyance shall be in a form 
371.20  approved by the attorney general. 
371.21     (b) The conveyance is subject to a scenic easement, as 
371.22  defined in Minnesota Statutes, section 103F.311, subdivision 6, 
371.23  to be under the custodial control of the commissioner of natural 
371.24  resources, on that portion of the conveyed land that is 
371.25  designated for inclusion in the wild and scenic river system 
371.26  under Minnesota Statutes, section 103F.325.  The scenic easement 
371.27  shall allow for continued use of the structures located within 
371.28  the easement and for development of a walking path within the 
371.29  easement. 
371.30     (c) The conveyance shall restrict use of the land to 
371.31  governmental, including recreational, purposes and shall provide 
371.32  that ownership of any portion of the land that ceases to be used 
371.33  for such purposes shall revert to the state of Minnesota. 
371.34     (d) The commissioner of administration may convey any part 
371.35  of the property described in subdivision 3 any time after the 
371.36  land is declared surplus by the commissioner of human services 
372.1   and the execution and recording of the scenic easement under 
372.2   paragraph (b) has been completed. 
372.3      (e) Notwithstanding any law, regulation, or ordinance to 
372.4   the contrary, the instrument of conveyance to Anoka county may 
372.5   be recorded in the office of the Anoka county recorder without 
372.6   compliance with any subdivision requirement. 
372.7      Subd. 3.  [LAND DESCRIPTION.] Subject to right-of-way for 
372.8   Grant Street, Northview Lane, Garfield Street, 5th Avenue, and 
372.9   state trunk highway No. 288, also known as 4th Avenue, the land 
372.10  to be conveyed may include all, or part of, that which is 
372.11  described as follows: 
372.12     (1) all that part of Government Lots 3 and 4 and that part 
372.13  of the Southeast Quarter of the Southwest Quarter, all in 
372.14  Section 31, Township 32 North, Range 24 West, Anoka county, 
372.15  Minnesota, described as follows: 
372.16     Beginning at the southwest corner of said Southeast Quarter 
372.17     of the Southwest Quarter of Section 31; thence North 13 
372.18     degrees 16 minutes 11 seconds East, assumed bearing, 473.34 
372.19     feet; thence North 07 degrees 54 minutes 43 seconds East 
372.20     186.87 feet; thence North 14 degrees 08 minutes 33 seconds 
372.21     West 154.77 feet; thence North 62 degrees 46 minutes 44 
372.22     seconds West 526.92 feet; thence North 25 degrees 45 
372.23     minutes 30 seconds East 74.43 feet; thence northerly 88.30 
372.24     feet along a tangential curve concave to the west having a 
372.25     radius of 186.15 feet and a central angle of 27 degrees 10 
372.26     minutes 50 seconds; thence North 01 degrees 25 minutes 20 
372.27     seconds West, tangent to said curve, 140.53 feet; thence 
372.28     North 71 degrees 56 minutes 34 seconds West to the 
372.29     southeasterly shoreline of the Rum river; thence 
372.30     southwesterly along said shoreline to the south line of 
372.31     said Government Lot 4; thence easterly along said south 
372.32     line to the point of beginning.  For the purpose of this 
372.33     description the south line of said Southeast Quarter of the 
372.34     Southwest Quarter of Section 31 has an assumed bearing of 
372.35     North 89 degrees 08 minutes 19 seconds East; 
372.36     (2) Government Lot 1, Section 6, Township 31 North, Range 
373.1   24 West, Anoka county, Minnesota; EXCEPT that part platted as 
373.2   Grant Properties, Anoka county, Minnesota; ALSO EXCEPT that part 
373.3   lying southerly of the westerly extension of the south line of 
373.4   Block 6, Woodbury's Addition to the city of Anoka, Anoka county, 
373.5   Minnesota, and lying westerly of the west line of said plat of 
373.6   Grant Properties, said line also being the centerline of 4th 
373.7   Avenue; 
373.8      (3) all that part of said Block 6, Woodbury's Addition to 
373.9   the city of Anoka lying westerly of Northview 1st Addition, 
373.10  Anoka county, Minnesota; 
373.11     (4) all that part of said Northview 1st Addition lying 
373.12  westerly of the east line of Lots 11 through 20, Block 1, 
373.13  inclusive, thereof; and 
373.14     (5) all that part of the Northeast Quarter of the Northwest 
373.15  Quarter of said Section 6, Township 31 North, Range 24 West, 
373.16  Anoka county, Minnesota, lying northerly of the centerline of 
373.17  Grant Street as defined by said plat of Grant Properties and 
373.18  lying westerly of said east line of Lots 11 through 20, Block 1, 
373.19  inclusive, Northview 1st Addition and said line's extension 
373.20  north and south. 
373.21     Subd. 4.  [DETERMINATION.] The commissioner of human 
373.22  services has determined that the land described in subdivision 3 
373.23  will no longer be needed for the Anoka metro regional treatment 
373.24  center upon the completion of the state facilities currently 
373.25  under construction and the completion of renovation work to 
373.26  state buildings that are not located on the land described in 
373.27  subdivision 3.  The state's land and building management 
373.28  interests may best be served by conveying all, or part of, the 
373.29  land and associated buildings located on the land described in 
373.30  subdivision 3. 
373.31     Sec. 2.  [CONVEYANCE OF STATE LAND; CROW WING COUNTY.] 
373.32     Subdivision 1.  [CONVEYANCE AUTHORIZED.] Notwithstanding 
373.33  Minnesota Statutes, sections 92.45, 94.09, 94.10, and 103F.335, 
373.34  subdivision 3, or any other law to the contrary, the 
373.35  commissioner of administration may convey all, or any part of, 
373.36  the land and the state building located on the land described in 
374.1   subdivision 3, to Crow Wing county after the commissioner of 
374.2   human services declares the property surplus to its needs. 
374.3      Subd. 2.  [FORM.] (a) The conveyance shall be in a form 
374.4   approved by the attorney general. 
374.5      (b) The conveyance shall restrict use of the land to county 
374.6   governmental purposes, including community corrections programs, 
374.7   and shall provide that ownership of any portion of the land or 
374.8   building that ceases to be used for such purposes shall revert 
374.9   to the state of Minnesota. 
374.10     Subd. 3.  [LAND DESCRIPTION.] That part of the Northeast 
374.11  Quarter (NE l/4) of Section 30, Township 45 North, Range 30 
374.12  West, Crow Wing county, Minnesota, described as follows: 
374.13     Commencing at the southeast corner of said Northeast 
374.14     quarter; thence North 00 degrees 46 minutes 05 seconds 
374.15     West, bearing based on the Crow Wing county Coordinate 
374.16     Database NAD 83/94, 1520.06 feet along the east line of 
374.17     said Northeast quarter to the point of beginning; thence 
374.18     continue North 00 degrees 46 minutes 05 seconds West 634.14 
374.19     feet along said east line of the Northeast quarter; thence 
374.20     South 89 degrees 13 minutes 20 seconds West 550.00 feet; 
374.21     thence South 18 degrees 57 minutes 23 seconds East 115.59 
374.22     feet; thence South 42 degrees 44 minutes 39 seconds East 
374.23     692.37 feet; thence South 62 degrees 46 minutes 19 seconds 
374.24     East 20.24 feet; thence North 89 degrees 13 minutes 55 
374.25     seconds East 33.00 feet to the point of beginning.  
374.26     Containing 4.69 acres, more or less.  Subject to the 
374.27     right-of-way of the Township road along the east side 
374.28     thereof, subject to other easements, reservations, and 
374.29     restrictions of record, if any. 
374.30     Subd. 4.  [DETERMINATION.] The commissioner of human 
374.31  services has determined that the land described in subdivision 3 
374.32  and the building on the land will not be needed for future 
374.33  operations of the Brainerd regional human services center.  The 
374.34  state's land management interests would best be served by 
374.35  conveying the land to Crow Wing county for governmental use. 
374.36                             ARTICLE 8
375.1                COMPULSIVE GAMBLING AND MISCELLANEOUS
375.2      Section 1.  Minnesota Statutes 1996, section 62A.65, 
375.3   subdivision 5, is amended to read: 
375.4      Subd. 5.  [PORTABILITY OF COVERAGE.] (a) No individual 
375.5   health plan may be offered, sold, issued, or with respect to 
375.6   children age 18 or under renewed, to a Minnesota resident that 
375.7   contains a preexisting condition limitation, preexisting 
375.8   condition exclusion, or exclusionary rider, unless the 
375.9   limitation or exclusion is permitted under this subdivision, 
375.10  provided that, except for children age 18 or under, underwriting 
375.11  restrictions may be retained on individual contracts that are 
375.12  issued without evidence of insurability as a replacement for 
375.13  prior individual coverage that was sold before May 17, 1993.  
375.14  The individual may be subjected to an 18-month preexisting 
375.15  condition limitation, unless the individual has maintained 
375.16  continuous coverage as defined in section 62L.02.  The 
375.17  individual must not be subjected to an exclusionary rider.  An 
375.18  individual who has maintained continuous coverage may be 
375.19  subjected to a one-time preexisting condition limitation of up 
375.20  to 12 months, with credit for time covered under qualifying 
375.21  coverage as defined in section 62L.02, at the time that the 
375.22  individual first is covered under an individual health plan by 
375.23  any health carrier.  Credit must be given for all qualifying 
375.24  coverage with respect to all preexisting conditions, regardless 
375.25  of whether the conditions were preexisting with respect to any 
375.26  previous qualifying coverage.  The individual must not be 
375.27  subjected to an exclusionary rider.  Thereafter, the individual 
375.28  must not be subject to any preexisting condition limitation, 
375.29  preexisting condition exclusion, or exclusionary rider under an 
375.30  individual health plan by any health carrier, except an 
375.31  unexpired portion of a limitation under prior coverage, so long 
375.32  as the individual maintains continuous coverage as defined in 
375.33  section 62L.02. 
375.34     (b) A health carrier must offer an individual health plan 
375.35  to any individual previously covered under a group health plan 
375.36  issued by that health carrier, regardless of the size of the 
376.1   group, so long as the individual maintained continuous coverage 
376.2   as defined in section 62L.02.  Beginning January 1, 1999, if the 
376.3   individual has available any continuation coverage provided 
376.4   under sections 62A.146; 62A.148; 62A.17, subdivisions 1 and 2; 
376.5   62A.20; 62A.21; 62C.142; 62D.101; or 62D.105, or continuation 
376.6   coverage provided under federal law, the health carrier need not 
376.7   offer coverage under this paragraph until the individual has 
376.8   exhausted the continuation coverage.  The offer must not be 
376.9   subject to underwriting, except as permitted under this 
376.10  paragraph.  A health plan issued under this paragraph must be a 
376.11  qualified plan as defined in section 62E.02 and must not contain 
376.12  any preexisting condition limitation, preexisting condition 
376.13  exclusion, or exclusionary rider, except for any unexpired 
376.14  limitation or exclusion under the previous coverage.  The 
376.15  individual health plan must cover pregnancy on the same basis as 
376.16  any other covered illness under the individual health plan.  The 
376.17  initial premium rate for the individual health plan must comply 
376.18  with subdivision 3.  The premium rate upon renewal must comply 
376.19  with subdivision 2.  In no event shall the premium rate exceed 
376.20  90 percent of the premium charged for comparable individual 
376.21  coverage by the Minnesota comprehensive health association, and 
376.22  the premium rate must be less than that amount if necessary to 
376.23  otherwise comply with this section.  An individual health plan 
376.24  offered under this paragraph to a person satisfies the health 
376.25  carrier's obligation to offer conversion coverage under section 
376.26  62E.16, with respect to that person.  Coverage issued under this 
376.27  paragraph must provide that it cannot be canceled or nonrenewed 
376.28  as a result of the health carrier's subsequent decision to leave 
376.29  the individual, small employer, or other group market.  Section 
376.30  72A.20, subdivision 28, applies to this paragraph. 
376.31     Sec. 2.  Minnesota Statutes 1996, section 62D.042, 
376.32  subdivision 2, is amended to read: 
376.33     Subd. 2.  [BEGINNING ORGANIZATIONS NET WORTH REQUIREMENTS.] 
376.34  (a) Beginning organizations shall maintain net worth of at least 
376.35  8-1/3 percent of the sum of all expenses expected to be incurred 
376.36  in the 12 months following the date the certificate of authority 
377.1   is granted, or $1,500,000, whichever is greater. 
377.2      (b) After the first full calendar year of operation, 
377.3   organizations shall maintain net worth of at least 8-1/3 percent 
377.4   and at most 16-2/3 25 percent of the sum of all expenses 
377.5   incurred during the most recent calendar year, but in no case 
377.6   shall net worth fall below $1,000,000. 
377.7      (c) Notwithstanding paragraphs (a) and (b), any health 
377.8   maintenance organization owned by a political subdivision of 
377.9   this state, which has a higher than average percentage of 
377.10  enrollees who are enrolled in medical assistance or general 
377.11  assistance medical care, may exceed the maximum net worth limits 
377.12  provided in paragraphs (a) and (b), with the advance approval of 
377.13  the commissioner. 
377.14     Sec. 3.  Minnesota Statutes 1996, section 62E.16, is 
377.15  amended to read: 
377.16     62E.16 [POLICY CONVERSION RIGHTS.] 
377.17     Every program of self-insurance, policy of group accident 
377.18  and health insurance or contract of coverage by a health 
377.19  maintenance organization written or renewed in this state, shall 
377.20  include, in addition to the provisions required by section 
377.21  62A.17, the right to convert to an individual coverage qualified 
377.22  plan without the addition of underwriting restrictions if after 
377.23  the individual insured has exhausted any continuation coverage 
377.24  provided under section 62A.146; 62A.148; 62A.17, subdivisions 1 
377.25  and 2; 62A.20; 62A.21; 62C.142; 62D.101; or 62D.105, or 
377.26  continuation coverage provided under federal law, if any 
377.27  continuation coverage is available to the individual, and then 
377.28  leaves the group regardless of the reason for leaving the group 
377.29  or if an employer member of a group ceases to remit payment so 
377.30  as to terminate coverage for its employees, or upon cancellation 
377.31  or termination of the coverage for the group except where 
377.32  uninterrupted and continuous group coverage is otherwise 
377.33  provided to the group.  If the health maintenance organization 
377.34  has canceled coverage for the group because of a loss of 
377.35  providers in a service area, the health maintenance organization 
377.36  shall arrange for other health maintenance or indemnity 
378.1   conversion options that shall be offered to enrollees without 
378.2   the addition of underwriting restrictions.  The required 
378.3   conversion contract must treat pregnancy the same as any other 
378.4   covered illness under the conversion contract.  The person may 
378.5   exercise this right to conversion within 30 days of exhausting 
378.6   any continuation coverage provided under section 62A.146; 
378.7   62A.148; 62A.17, subdivisions 1 and 2; 62A.20; or 62A.21, or 
378.8   continuation coverage provided under federal law, and then 
378.9   leaving the group or within 30 days following receipt of due 
378.10  notice of cancellation or termination of coverage of the group 
378.11  or of the employer member of the group and upon payment of 
378.12  premiums from the date of termination or cancellation.  Due 
378.13  notice of cancellation or termination of coverage for a group or 
378.14  of the employer member of the group shall be provided to each 
378.15  employee having coverage in the group by the insurer, 
378.16  self-insurer or health maintenance organization canceling or 
378.17  terminating the coverage except where reasonable evidence 
378.18  indicates that uninterrupted and continuous group coverage is 
378.19  otherwise provided to the group.  Every employer having a policy 
378.20  of group accident and health insurance, group subscriber or 
378.21  contract of coverage by a health maintenance organization shall, 
378.22  upon request, provide the insurer or health maintenance 
378.23  organization a list of the names and addresses of covered 
378.24  employees.  Plans of health coverage shall also include a 
378.25  provision which, upon the death of the individual in whose name 
378.26  the contract was issued, permits every other individual then 
378.27  covered under the contract to elect, within the period specified 
378.28  in the contract, to continue coverage under the same or a 
378.29  different contract without the addition of underwriting 
378.30  restrictions until the individual would have ceased to have been 
378.31  entitled to coverage had the individual in whose name the 
378.32  contract was issued lived.  An individual conversion contract 
378.33  issued by a health maintenance organization shall not be deemed 
378.34  to be an individual enrollment contract for the purposes of 
378.35  section 62D.10.  An individual health plan offered under section 
378.36  62A.65, subdivision 5, paragraph (b), to a person satisfies the 
379.1   health carrier's obligation to offer conversion coverage under 
379.2   this section with respect to that person. 
379.3      Sec. 4.  [62Q.096] [CREDENTIALING OF PROVIDERS.] 
379.4      If a health plan company has initially credentialed, as 
379.5   providers in its provider network, individual providers employed 
379.6   by or under contract with an entity that:  (1) is authorized to 
379.7   bill under section 256B.0625, subdivision 5; (2) meets the 
379.8   requirements of Minnesota Rules, parts 9520.0750 to 9520.0870; 
379.9   (3) is designated an essential community provider under section 
379.10  62Q.19; and (4) is under contract with the health plan company 
379.11  to provide mental health services, the health plan company must 
379.12  continue to credential at least the same number of providers 
379.13  from that entity, as long as those providers meet the health 
379.14  plan company's credentialing standards.  A health plan company 
379.15  shall not refuse to credential these providers on the grounds 
379.16  that their provider network has a sufficient number of providers 
379.17  of that type. 
379.18     Sec. 5.  [245.982] [PROGRAM SUPPORT.] 
379.19     In order to address the problem of gambling in this state, 
379.20  the compulsive gambling fund should attempt to assess the 
379.21  beneficiaries of gambling, on a percentage basis according to 
379.22  the revenue they receive from gambling, for the costs of 
379.23  programs to help problem gamblers and their families.  In that 
379.24  light, the governor is requested to contact the chairs of the 11 
379.25  tribal governments in this state and request a contribution of 
379.26  funds for the compulsive gambling program.  The governor should 
379.27  seek a total supplemental contribution of $643,000.  Funds 
379.28  received from the tribal governments in this state shall be 
379.29  deposited in the Indian gaming revolving account. 
379.30     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
379.31  256F.05, subdivision 8, is amended to read: 
379.32     Subd. 8.  [USES OF FAMILY PRESERVATION FUND GRANTS.] (a) A 
379.33  county which has not demonstrated that year that its family 
379.34  preservation core services are developed as provided in 
379.35  subdivision 1a, must use its family preservation fund grant 
379.36  exclusively for family preservation services defined in section 
380.1   256F.03, subdivision 5, paragraphs (a), (b), (c), and (e). 
380.2      (b) A county which has demonstrated that year that its 
380.3   family preservation core services are developed becomes eligible 
380.4   either to continue using its family preservation fund grant as 
380.5   provided in paragraph (a), or to exercise the expanded service 
380.6   option under paragraph (c). 
380.7      (c) The expanded service option permits an eligible county 
380.8   to use its family preservation fund grant for child welfare 
380.9   preventive services.  For purposes of this section, child 
380.10  welfare preventive services are those services directed toward a 
380.11  specific child or family that further the goals of section 
380.12  256F.01 and include assessments, family preservation services, 
380.13  service coordination, community-based treatment, crisis nursery 
380.14  services when the parents retain custody and there is no 
380.15  voluntary placement agreement with a child-placing agency, 
380.16  respite care except when it is provided under a medical 
380.17  assistance waiver, home-based services, and other related 
380.18  services.  For purposes of this section, child welfare 
380.19  preventive services shall not include shelter care or other 
380.20  placement services under the authority of the court or public 
380.21  agency to address an emergency.  To exercise this option, an 
380.22  eligible county must notify the commissioner in writing of its 
380.23  intention to do so no later than 30 days into the quarter during 
380.24  which it intends to begin or in its county plan, as provided in 
380.25  section 256F.04, subdivision 2.  Effective with the first day of 
380.26  that quarter, the county must maintain its base level of 
380.27  expenditures for child welfare preventive services and use the 
380.28  family preservation fund to expand them.  The base level of 
380.29  expenditures for a county shall be that established under 
380.30  section 256F.10, subdivision 7.  For counties which have no such 
380.31  base established, a comparable base shall be established with 
380.32  the base year being the calendar year ending at least two 
380.33  calendar quarters before the first calendar quarter in which the 
380.34  county exercises its expanded service option.  The commissioner 
380.35  shall, at the request of the counties, reduce, suspend, or 
380.36  eliminate either or both of a county's obligations to continue 
381.1   the base level of expenditures and to expand child welfare 
381.2   preventive services under extraordinary circumstances.  
381.3      (d) Notwithstanding paragraph (a), a county that is 
381.4   participating in the child protection assessments or 
381.5   investigations community collaboration pilot program under 
381.6   section 626.5560, or in the concurrent permanency planning pilot 
381.7   program under section 257.0711, may use its family preservation 
381.8   fund grant for those programs. 
381.9      Sec. 7.  Minnesota Statutes 1996, section 609.115, 
381.10  subdivision 9, is amended to read: 
381.11     Subd. 9.  [COMPULSIVE GAMBLING ASSESSMENT REQUIRED.] (a) If 
381.12  a person is convicted of a felony for theft under section 
381.13  609.52, embezzlement of public funds under section 609.54, or 
381.14  forgery under section 609.625, 609.63, or 609.631, the probation 
381.15  officer shall determine in the report prepared under subdivision 
381.16  1 whether or not compulsive gambling contributed to the 
381.17  commission of the offense.  If so, the report shall contain the 
381.18  results of a compulsive gambling assessment conducted in 
381.19  accordance with this subdivision.  The probation officer shall 
381.20  make an appointment for the offender to undergo the assessment 
381.21  if so indicated. 
381.22     (b) The compulsive gambling assessment report must include 
381.23  a recommended level of treatment for the offender if the 
381.24  assessor concludes that the offender is in need of compulsive 
381.25  gambling treatment.  The assessment must be conducted by an 
381.26  assessor qualified under section 245.98, subdivision 2a, to 
381.27  perform these assessments or to provide compulsive gambling 
381.28  treatment.  An assessor providing a compulsive gambling 
381.29  assessment may not have any direct or shared financial interest 
381.30  or referral relationship resulting in shared financial gain with 
381.31  a treatment provider.  If an independent assessor is not 
381.32  available, the probation officer may use the services of an 
381.33  assessor with a financial interest or referral relationship as 
381.34  authorized under rules adopted by the commissioner of human 
381.35  services under section 245.98, subdivision 2a. 
381.36     (c) The commissioner of human services shall reimburse the 
382.1   assessor for the costs associated with a compulsive gambling 
382.2   assessment at a rate established by the commissioner up to a 
382.3   maximum of $100 for each assessment.  The commissioner shall 
382.4   reimburse these costs after receiving written verification from 
382.5   the probation officer that the assessment was performed and 
382.6   found acceptable. 
382.7      Sec. 8.  Laws 1994, chapter 633, article 7, section 3, is 
382.8   amended to read: 
382.9      Sec. 3.  [INDIAN GAMING REVOLVING ACCOUNT.] 
382.10     Funds received from the attorney general Indian tribal 
382.11  governments and the Minnesota state lottery shall deposit be 
382.12  deposited in a separate account in the state treasury all money 
382.13  received from Indian tribal governments for the purpose of 
382.14  defraying the attorney general's costs in providing legal 
382.15  services with respect to Indian gaming.  Money in the account is 
382.16  appropriated to the attorney general for that 
382.17  purpose contributing to the compulsive gambling program. 
382.18     Sec. 9.  [PREVALENCE STUDY.] 
382.19     If funding is available, the compulsive gambling program 
382.20  shall provide baseline prevalence studies to identify those at 
382.21  highest risk of developing a compulsive gambling problem, 
382.22  including a replication in 1999 of the 1994 adult prevalence 
382.23  survey.  
382.24     Sec. 10.  [EXTENDING ASSESSMENTS TO BANKRUPTCY AND FAMILY 
382.25  COURT PROCEEDINGS.] 
382.26     If funding is available, the commissioner of human services 
382.27  shall study whether problem gambling assessments should be 
382.28  provided or required for individuals involved in bankruptcy or 
382.29  family court proceedings, and report to the legislature by 
382.30  December 15, 1998. 
382.31     Sec. 11.  [COMPULSIVE GAMBLING APPROPRIATION.] 
382.32     (a) In addition to any other appropriations, $340,000 is 
382.33  appropriated annually from the Minnesota lottery prize fund to 
382.34  the Indian gaming revolving account in Laws 1994, chapter 633, 
382.35  article 7, section 3, and transferred to the commissioner of 
382.36  human services for the compulsive gambling program.  The funds 
383.1   provided under Minnesota Statutes, section 245.982, are to be 
383.2   transferred from the Indian gaming revolving account to the 
383.3   commissioner of human services for purposes of paragraph (d). 
383.4      (b) Of the funds appropriated under this section, $290,000 
383.5   in fiscal year 1999 is appropriated for the establishment of 
383.6   fee-for-service projects.  Fee-for-service funds under this 
383.7   appropriation may be awarded on a per-client basis to existing 
383.8   treatment centers and may be in addition to grants the centers 
383.9   currently receive.  Baseline grants based on the last fiscal 
383.10  year client numbers and units of services provided constitute 
383.11  minimum appropriations to existing treatment centers, and upon 
383.12  meeting the contracted level of services, the treatment centers 
383.13  are eligible for fee-for-service funds on a per-client basis in 
383.14  addition to grants.  
383.15     (c) Of the funds appropriated under this section, $50,000 
383.16  in fiscal year 1999 is appropriated for the operation of 
383.17  prevention and education programs aimed at helping adult and 
383.18  adolescent gamblers. 
383.19     (d) Of the funds provided under Minnesota Statutes, section 
383.20  245.982, up to $30,000 in fiscal year 1999 may be used for the 
383.21  completion of the prevalence study in section 9, up to $10,000 
383.22  in fiscal year 1999 may be used for the study in section 10 
383.23  related to extending assessments to bankruptcy and family court 
383.24  proceedings, and up to $50,000 in fiscal year 1999 may be used 
383.25  for the operation of the hotline.  The commissioner may 
383.26  prioritize the initiatives under this paragraph as the 
383.27  commissioner deems appropriate.  Any funding remaining must be 
383.28  used for purposes of treatment under paragraph (b) and 
383.29  prevention under paragraph (c), and the funds must be 
383.30  appropriated at a two-to-one ratio, respectively. 
383.31     Sec. 12.  [TOWN OF WHITE, ST. LOUIS COUNTY.] 
383.32     Subdivision 1.  [TRANSFER.] Notwithstanding any provision 
383.33  of Minnesota Statutes to the contrary, the town of White is 
383.34  hereby authorized to transfer the following property and any 
383.35  buildings, equipment, and other improvements located thereon to 
383.36  the White community hospital corporation, a nonprofit 
384.1   corporation organized and existing under Minnesota Statutes, 
384.2   chapter 317: 
384.3      That part of the southeast quarter of southwest quarter (SE 
384.4   1/4 of SW 1/4), section 10, township 58 north of range 15 west 
384.5   of the fourth principal meridian, according to the United States 
384.6   government survey thereof, St. Louis county, Minnesota, 
384.7   described as follows: 
384.8      Commencing at the southeast corner of said SE 1/4 of SW 
384.9   1/4, section 10, township 58, range 15, thence proceeding north 
384.10  along the east line thereof for a distance of 550 feet; thence 
384.11  west and parallel to the south line thereof for a distance of 
384.12  800 feet; thence south and parallel to the east line thereof, 
384.13  for a distance of 550 feet to the south line; thence east along 
384.14  said south line thereof, for a distance of 800 feet to the point 
384.15  of beginning. 
384.16     Subd. 2.  [NO CONSIDERATION OR ELECTION REQUIRED.] The 
384.17  transfer authorized by subdivision 1 shall be without 
384.18  consideration and no vote of the electors of the town of White 
384.19  or city of Aurora shall be required. 
384.20     Subd. 3.  [USE; PUBLIC PROPERTY.] The property legally 
384.21  described in subdivision 1 shall be used for health care and 
384.22  related purposes and shall be considered public property for 
384.23  purposes of Minnesota Statutes, section 16A.695.  The activities 
384.24  conducted on the property described in subdivision 1 by the 
384.25  White community hospital corporation, its successors and assigns 
384.26  shall be considered a governmental program as authorized by 
384.27  Minnesota Statutes, chapter 447. 
384.28     Subd. 4.  [NAME.] The public name of the buildings and 
384.29  improvements located on the real property legally described in 
384.30  subdivision 1 shall always include the words "White community." 
384.31     Sec. 13.  [CITY OF EVELETH; LOAN FORGIVENESS.] 
384.32     Notwithstanding the provisions of any other law or charter, 
384.33  the city of Eveleth may, by resolution of its city council, 
384.34  forgive all or any portion of the principal and interest due or 
384.35  to become due to the city, pursuant to any loan or loans made by 
384.36  the city, in an amount not exceeding $100,000, prior to January 
385.1   1, 1998, to any hospital, nursing home, other health care 
385.2   facility or corporation, partnership, or limited liability 
385.3   company operating such a facility within the city of Eveleth. 
385.4      Sec. 14.  [REPEALER.] 
385.5      (a) Minnesota Rules, part 2740.1600, subpart 1, is repealed.
385.6      (b) Minnesota Statutes 1997 Supplement, section 62D.042, 
385.7   subdivision 3, is repealed. 
385.8      Sec. 15.  [EFFECTIVE DATES.] 
385.9      (a) Sections 2 and 4 are effective January 1, 1999. 
385.10     (b) Section 3 is effective January 1, 1999, and applies to 
385.11  any individual who has continuation coverage available on or 
385.12  after that date. 
385.13     (c) Section 12 is effective upon compliance with Minnesota 
385.14  Statutes, section 645.021, subdivision 2.  
385.15     (d) Section 13 is effective the day following final 
385.16  enactment without local approval according to Minnesota 
385.17  Statutes, section 645.023, subdivision 1, clause (a). 
385.18     (e) Section 14, paragraph (a), is effective January 1, 1999.
385.19     (f) Section 14, paragraph (b), is effective the day 
385.20  following final enactment. 
385.21                             ARTICLE 9 
385.22                    CHILD WELFARE MODIFICATIONS 
385.23     Section 1.  Minnesota Statutes 1997 Supplement, section 
385.24  144.218, subdivision 2, is amended to read: 
385.25     Subd. 2.  [ADOPTION OF FOREIGN PERSONS.] In proceedings for 
385.26  the adoption of a person who was born in a foreign country, the 
385.27  court, upon evidence presented by the commissioner of human 
385.28  services from information secured at the port of entry, or upon 
385.29  evidence from other reliable sources, may make findings of fact 
385.30  as to the date and place of birth and parentage.  Upon receipt 
385.31  of certified copies of the court findings and the order or 
385.32  decree of adoption or a certified copy of a decree issued under 
385.33  section 259.60, the state registrar shall register a birth 
385.34  certificate in the new name of the adopted person.  The 
385.35  certified copies of the court findings and the order or, decree 
385.36  of adoption, or decree issued under section 259.60 are 
386.1   confidential, pursuant to section 13.02, subdivision 3, and 
386.2   shall not be disclosed except pursuant to court order or section 
386.3   144.1761.  The birth certificate shall state the place of birth 
386.4   as specifically as possible, and that the certificate is not 
386.5   evidence of United States citizenship. 
386.6      Sec. 2.  Minnesota Statutes 1996, section 144.226, 
386.7   subdivision 3, is amended to read: 
386.8      Subd. 3.  [BIRTH CERTIFICATE COPY SURCHARGE.] In addition 
386.9   to any fee prescribed under subdivision 1, there shall be a 
386.10  surcharge of $3 for each certified copy of a birth certificate, 
386.11  and for a certification that the record cannot be found.  The 
386.12  local or state registrar shall forward this amount to the 
386.13  commissioner of finance for deposit into the account for the 
386.14  children's trust fund for the prevention of child abuse 
386.15  established under section 119A.12.  This surcharge shall not be 
386.16  charged under those circumstances in which no fee for a 
386.17  certified copy of a birth certificate is permitted under 
386.18  subdivision 1, paragraph (a).  Upon certification by the 
386.19  commissioner of finance that the assets in that fund exceed 
386.20  $20,000,000, this surcharge shall be discontinued. 
386.21     Sec. 3.  Minnesota Statutes 1997 Supplement, section 
386.22  144.226, subdivision 4, is amended to read: 
386.23     Subd. 4.  [VITAL RECORDS SURCHARGE.] In addition to any fee 
386.24  prescribed under subdivision 1, there is a nonrefundable 
386.25  surcharge of $3 for each certified and noncertified birth or 
386.26  death record, and for a certification that the record cannot be 
386.27  found.  The local or state registrar shall forward this amount 
386.28  to the state treasurer to be deposited into the state government 
386.29  special revenue fund.  This surcharge shall not be charged under 
386.30  those circumstances in which no fee for a birth or death record 
386.31  is permitted under subdivision 1, paragraph (a).  This surcharge 
386.32  requirement expires June 30, 2002. 
386.33     Sec. 4.  Minnesota Statutes 1997 Supplement, section 
386.34  245A.03, subdivision 2, is amended to read: 
386.35     Subd. 2.  [EXCLUSION FROM LICENSURE.] Sections 245A.01 to 
386.36  245A.16 do not apply to: 
387.1      (1) residential or nonresidential programs that are 
387.2   provided to a person by an individual who is related unless the 
387.3   residential program is a child foster care placement made by a 
387.4   local social services agency or a licensed child-placing agency, 
387.5   except as provided in subdivision 2a; 
387.6      (2) nonresidential programs that are provided by an 
387.7   unrelated individual to persons from a single related family; 
387.8      (3) residential or nonresidential programs that are 
387.9   provided to adults who do not abuse chemicals or who do not have 
387.10  a chemical dependency, a mental illness, mental retardation or a 
387.11  related condition, a functional impairment, or a physical 
387.12  handicap; 
387.13     (4) sheltered workshops or work activity programs that are 
387.14  certified by the commissioner of economic security; 
387.15     (5) programs for children enrolled in kindergarten to the 
387.16  12th grade and prekindergarten special education in a school as 
387.17  defined in section 120.101, subdivision 4, and programs serving 
387.18  children in combined special education and regular 
387.19  prekindergarten programs that are operated or assisted by the 
387.20  commissioner of children, families, and learning; 
387.21     (6) nonresidential programs primarily for children that 
387.22  provide care or supervision, without charge for ten or fewer 
387.23  days a year, and for periods of less than three hours a day 
387.24  while the child's parent or legal guardian is in the same 
387.25  building as the nonresidential program or present within another 
387.26  building that is directly contiguous to the building in which 
387.27  the nonresidential program is located; 
387.28     (7) nursing homes or hospitals licensed by the commissioner 
387.29  of health except as specified under section 245A.02; 
387.30     (8) board and lodge facilities licensed by the commissioner 
387.31  of health that provide services for five or more persons whose 
387.32  primary diagnosis is mental illness who have refused an 
387.33  appropriate residential program offered by a county agency.  
387.34  This exclusion expires on July 1, 1990; 
387.35     (9) homes providing programs for persons placed there by a 
387.36  licensed agency for legal adoption, unless the adoption is not 
388.1   completed within two years; 
388.2      (10) programs licensed by the commissioner of corrections; 
388.3      (11) recreation programs for children or adults that 
388.4   operate for fewer than 40 calendar days in a calendar year or 
388.5   programs operated by a park and recreation board of a city of 
388.6   the first class whose primary purpose is to provide social and 
388.7   recreational activities to school age children, provided the 
388.8   program is approved by the park and recreation board; 
388.9      (12) programs operated by a school as defined in section 
388.10  120.101, subdivision 4, whose primary purpose is to provide 
388.11  child care to school-age children, provided the program is 
388.12  approved by the district's school board; 
388.13     (13) Head Start nonresidential programs which operate for 
388.14  less than 31 days in each calendar year; 
388.15     (14) noncertified boarding care homes unless they provide 
388.16  services for five or more persons whose primary diagnosis is 
388.17  mental illness or mental retardation; 
388.18     (15) nonresidential programs for nonhandicapped children 
388.19  provided for a cumulative total of less than 30 days in any 
388.20  12-month period; 
388.21     (16) residential programs for persons with mental illness, 
388.22  that are located in hospitals, until the commissioner adopts 
388.23  appropriate rules; 
388.24     (17) the religious instruction of school-age children; 
388.25  Sabbath or Sunday schools; or the congregate care of children by 
388.26  a church, congregation, or religious society during the period 
388.27  used by the church, congregation, or religious society for its 
388.28  regular worship; 
388.29     (18) camps licensed by the commissioner of health under 
388.30  Minnesota Rules, chapter 4630; 
388.31     (19) mental health outpatient services for adults with 
388.32  mental illness or children with emotional disturbance; 
388.33     (20) residential programs serving school-age children whose 
388.34  sole purpose is cultural or educational exchange, until the 
388.35  commissioner adopts appropriate rules; 
388.36     (21) unrelated individuals who provide out-of-home respite 
389.1   care services to persons with mental retardation or related 
389.2   conditions from a single related family for no more than 90 days 
389.3   in a 12-month period and the respite care services are for the 
389.4   temporary relief of the person's family or legal representative; 
389.5      (22) respite care services provided as a home and 
389.6   community-based service to a person with mental retardation or a 
389.7   related condition, in the person's primary residence; 
389.8      (23) community support services programs as defined in 
389.9   section 245.462, subdivision 6, and family community support 
389.10  services as defined in section 245.4871, subdivision 17; 
389.11     (24) the placement of a child by a birth parent or legal 
389.12  guardian in a preadoptive home for purposes of adoption as 
389.13  authorized by section 259.47; or 
389.14     (25) settings registered under chapter 144D which provide 
389.15  home care services licensed by the commissioner of health to 
389.16  fewer than seven adults. 
389.17     For purposes of clause (6), a building is directly 
389.18  contiguous to a building in which a nonresidential program is 
389.19  located if it shares a common wall with the building in which 
389.20  the nonresidential program is located or is attached to that 
389.21  building by skyway, tunnel, atrium, or common roof. 
389.22     Sec. 5.  Minnesota Statutes 1996, section 245A.035, 
389.23  subdivision 4, is amended to read: 
389.24     Subd. 4.  [APPLICANT STUDY.] When the county agency has 
389.25  received the information required by section 245A.04, 
389.26  subdivision 3, paragraph (b), the county agency shall begin an 
389.27  applicant study according to the procedures in section 245A.04, 
389.28  subdivision 3.  The commissioner may issue an emergency license 
389.29  upon recommendation of the county agency once the initial 
389.30  inspection has been successfully completed and the information 
389.31  necessary to begin the applicant background study has been 
389.32  provided.  If the county agency does not recommend that the 
389.33  emergency license be granted, the agency shall notify the 
389.34  relative in writing that the agency is recommending denial to 
389.35  the commissioner; shall remove any child who has been placed in 
389.36  the home prior to licensure; and shall inform the relative in 
390.1   writing of the procedure to request review pursuant to 
390.2   subdivision 6.  An emergency license shall be effective until a 
390.3   child foster care license is granted or denied, but shall in no 
390.4   case remain in effect more than 90 120 days from the date of 
390.5   placement. 
390.6      Sec. 6.  Minnesota Statutes 1997 Supplement, section 
390.7   245A.04, subdivision 3b, is amended to read: 
390.8      Subd. 3b.  [RECONSIDERATION OF DISQUALIFICATION.] (a) The 
390.9   individual who is the subject of the disqualification may 
390.10  request a reconsideration of the disqualification.  
390.11     The individual must submit the request for reconsideration 
390.12  to the commissioner in writing.  A request for reconsideration 
390.13  for an individual who has been sent a notice of disqualification 
390.14  under subdivision 3a, paragraph (b), clause (1) or (2), must be 
390.15  submitted within 30 calendar days of the disqualified 
390.16  individual's receipt of the notice of disqualification.  A 
390.17  request for reconsideration for an individual who has been sent 
390.18  a notice of disqualification under subdivision 3a, paragraph 
390.19  (b), clause (3), must be submitted within 15 calendar days of 
390.20  the disqualified individual's receipt of the notice of 
390.21  disqualification.  Removal of a disqualified individual from 
390.22  direct contact shall be ordered if the individual does not 
390.23  request reconsideration within the prescribed time, and for an 
390.24  individual who submits a timely request for reconsideration, if 
390.25  the disqualification is not set aside.  The individual must 
390.26  present information showing that: 
390.27     (1) the information the commissioner relied upon is 
390.28  incorrect or inaccurate.  If the basis of a reconsideration 
390.29  request is that a maltreatment determination or disposition 
390.30  under section 626.556 or 626.557 is incorrect, and the 
390.31  commissioner has issued a final order in an appeal of that 
390.32  determination or disposition under section 256.045, the 
390.33  commissioner's order is conclusive on the issue of maltreatment; 
390.34  or 
390.35     (2) the subject of the study does not pose a risk of harm 
390.36  to any person served by the applicant or license holder. 
391.1      (b) The commissioner may set aside the disqualification 
391.2   under this section if the commissioner finds that the 
391.3   information the commissioner relied upon is incorrect or the 
391.4   individual does not pose a risk of harm to any person served by 
391.5   the applicant or license holder.  In determining that an 
391.6   individual does not pose a risk of harm, the commissioner shall 
391.7   consider the consequences of the event or events that lead to 
391.8   disqualification, whether there is more than one disqualifying 
391.9   event, the vulnerability of the victim at the time of the event, 
391.10  the time elapsed without a repeat of the same or similar event, 
391.11  documentation of successful completion by the individual studied 
391.12  of training or rehabilitation pertinent to the event, and any 
391.13  other information relevant to reconsideration.  In reviewing a 
391.14  disqualification under this section, the commissioner shall give 
391.15  preeminent weight to the safety of each person to be served by 
391.16  the license holder or applicant over the interests of the 
391.17  license holder or applicant. 
391.18     (c) Unless the information the commissioner relied on in 
391.19  disqualifying an individual is incorrect, the commissioner may 
391.20  not set aside the disqualification of an individual in 
391.21  connection with a license to provide family day care for 
391.22  children, foster care for children in the provider's own home, 
391.23  or foster care or day care services for adults in the provider's 
391.24  own home if: 
391.25     (1) less than ten years have passed since the discharge of 
391.26  the sentence imposed for the offense; and the individual has 
391.27  been convicted of a violation of any offense listed in sections 
391.28  609.20 (manslaughter in the first degree), 609.205 (manslaughter 
391.29  in the second degree), criminal vehicular homicide under 609.21 
391.30  (criminal vehicular homicide and injury), 609.215 (aiding 
391.31  suicide or aiding attempted suicide), felony violations under 
391.32  609.221 to 609.2231 (assault in the first, second, third, or 
391.33  fourth degree), 609.713 (terroristic threats), 609.235 (use of 
391.34  drugs to injure or to facilitate crime), 609.24 (simple 
391.35  robbery), 609.245 (aggravated robbery), 609.25 (kidnapping), 
391.36  609.255 (false imprisonment), 609.561 or 609.562 (arson in the 
392.1   first or second degree), 609.71 (riot), burglary in the first or 
392.2   second degree under 609.582 (burglary), 609.66 (dangerous 
392.3   weapon), 609.665 (spring guns), 609.67 (machine guns and 
392.4   short-barreled shotguns), 609.749 (harassment; stalking), 
392.5   152.021 or 152.022 (controlled substance crime in the first or 
392.6   second degree), 152.023, subdivision 1, clause (3) or (4), or 
392.7   subdivision 2, clause (4) (controlled substance crime in the 
392.8   third degree), 152.024, subdivision 1, clause (2), (3), or (4) 
392.9   (controlled substance crime in the fourth degree), 609.224, 
392.10  subdivision 2, paragraph (c) (fifth-degree assault by a 
392.11  caregiver against a vulnerable adult), 609.228 (great bodily 
392.12  harm caused by distribution of drugs), 609.23 (mistreatment of 
392.13  persons confined), 609.231 (mistreatment of residents or 
392.14  patients), 609.2325 (criminal abuse of a vulnerable adult), 
392.15  609.233 (criminal neglect of a vulnerable adult), 609.2335 
392.16  (financial exploitation of a vulnerable adult), 609.234 (failure 
392.17  to report), 609.265 (abduction), 609.2664 to 609.2665 
392.18  (manslaughter of an unborn child in the first or second degree), 
392.19  609.267 to 609.2672 (assault of an unborn child in the first, 
392.20  second, or third degree), 609.268 (injury or death of an unborn 
392.21  child in the commission of a crime), 617.293 (disseminating or 
392.22  displaying harmful material to minors), 609.378 (neglect or 
392.23  endangerment of a child), a gross misdemeanor offense under 
392.24  609.377 (malicious punishment of a child), 609.72, subdivision 3 
392.25  (disorderly conduct against a vulnerable adult); or an attempt 
392.26  or conspiracy to commit any of these offenses, as each of these 
392.27  offenses is defined in Minnesota Statutes; or an offense in any 
392.28  other state, the elements of which are substantially similar to 
392.29  the elements of any of the foregoing offenses; 
392.30     (2) regardless of how much time has passed since the 
392.31  discharge of the sentence imposed for the offense, the 
392.32  individual was convicted of a violation of any offense listed in 
392.33  sections 609.185 to 609.195 (murder in the first, second, or 
392.34  third degree), 609.2661 to 609.2663 (murder of an unborn child 
392.35  in the first, second, or third degree), a felony offense under 
392.36  609.377 (malicious punishment of a child), 609.322 
393.1   (solicitation, inducement, and promotion of prostitution), 
393.2   609.323 (receiving profit derived from prostitution), 609.342 to 
393.3   609.345 (criminal sexual conduct in the first, second, third, or 
393.4   fourth degree), 609.352 (solicitation of children to engage in 
393.5   sexual conduct), 617.246 (use of minors in a sexual 
393.6   performance), 617.247 (possession of pictorial representations 
393.7   of a minor), 609.365 (incest), a felony offense under 609.2242 
393.8   and 609.2243 (domestic assault), a felony offense of spousal 
393.9   abuse, a felony offense of child abuse or neglect, a felony 
393.10  offense of a crime against children, or an attempt or conspiracy 
393.11  to commit any of these offenses as defined in Minnesota 
393.12  Statutes, or an offense in any other state, the elements of 
393.13  which are substantially similar to any of the foregoing 
393.14  offenses; 
393.15     (3) within the seven years preceding the study, the 
393.16  individual committed an act that constitutes maltreatment of a 
393.17  child under section 626.556, subdivision 10e, and that resulted 
393.18  in substantial bodily harm as defined in section 609.02, 
393.19  subdivision 7a, or substantial mental or emotional harm as 
393.20  supported by competent psychological or psychiatric evidence; or 
393.21     (4) within the seven years preceding the study, the 
393.22  individual was determined under section 626.557 to be the 
393.23  perpetrator of a substantiated incident of maltreatment of a 
393.24  vulnerable adult that resulted in substantial bodily harm as 
393.25  defined in section 609.02, subdivision 7a, or substantial mental 
393.26  or emotional harm as supported by competent psychological or 
393.27  psychiatric evidence. 
393.28     In the case of any ground for disqualification under 
393.29  clauses (1) to (4), if the act was committed by an individual 
393.30  other than the applicant or license holder residing in the 
393.31  applicant's or license holder's home, the applicant or license 
393.32  holder may seek reconsideration when the individual who 
393.33  committed the act no longer resides in the home.  
393.34     The disqualification periods provided under clauses (1), 
393.35  (3), and (4) are the minimum applicable disqualification 
393.36  periods.  The commissioner may determine that an individual 
394.1   should continue to be disqualified from licensure because the 
394.2   license holder or applicant poses a risk of harm to a person 
394.3   served by that individual after the minimum disqualification 
394.4   period has passed. 
394.5      (d) The commissioner shall respond in writing or by 
394.6   electronic transmission to all reconsideration requests for 
394.7   which the basis for the request is that the information relied 
394.8   upon by the commissioner to disqualify is incorrect or 
394.9   inaccurate within 30 working days of receipt of a request and 
394.10  all relevant information.  If the basis for the request is that 
394.11  the individual does not pose a risk of harm, the commissioner 
394.12  shall respond to the request within 15 working days after 
394.13  receiving the request for reconsideration and all relevant 
394.14  information.  If the disqualification is set aside, the 
394.15  commissioner shall notify the applicant or license holder in 
394.16  writing or by electronic transmission of the decision. 
394.17     (e) Except as provided in subdivision 3c, the 
394.18  commissioner's decision to disqualify an individual, including 
394.19  the decision to grant or deny a rescission or set aside a 
394.20  disqualification under this section, is the final administrative 
394.21  agency action and shall not be subject to further review in a 
394.22  contested case under chapter 14 involving a negative licensing 
394.23  appeal taken in response to the disqualification or involving an 
394.24  accuracy and completeness appeal under section 13.04. 
394.25     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
394.26  245A.04, subdivision 3d, is amended to read: 
394.27     Subd. 3d.  [DISQUALIFICATION.] When a background study 
394.28  completed under subdivision 3 shows any of the following:  a 
394.29  conviction of one or more crimes listed in clauses (1) to (4); 
394.30  the individual has admitted to or a preponderance of the 
394.31  evidence indicates the individual has committed an act or acts 
394.32  that meet the definition of any of the crimes listed in clauses 
394.33  (1) to (4); or an administrative determination listed under 
394.34  clause (4), the individual shall be disqualified from any 
394.35  position allowing direct contact with persons receiving services 
394.36  from the license holder: 
395.1      (1) regardless of how much time has passed since the 
395.2   discharge of the sentence imposed for the offense, and unless 
395.3   otherwise specified, regardless of the level of the conviction, 
395.4   the individual was convicted of any of the following offenses:  
395.5   sections 609.185 (murder in the first degree); 609.19 (murder in 
395.6   the second degree); 609.195 (murder in the third degree); 
395.7   609.2661 (murder of an unborn child in the first degree); 
395.8   609.2662 (murder of an unborn child in the second degree); 
395.9   609.2663 (murder of an unborn child in the third degree); 
395.10  609.322 (solicitation, inducement, and promotion of 
395.11  prostitution); 609.323 (receiving profit derived from 
395.12  prostitution); 609.342 (criminal sexual conduct in the first 
395.13  degree); 609.343 (criminal sexual conduct in the second degree); 
395.14  609.344 (criminal sexual conduct in the third degree); 609.345 
395.15  (criminal sexual conduct in the fourth degree); 609.352 
395.16  (solicitation of children to engage in sexual conduct); 609.365 
395.17  (incest); felony offense under 609.377 (malicious punishment of 
395.18  a child); 617.246 (use of minors in sexual performance 
395.19  prohibited); 617.247 (possession of pictorial representations of 
395.20  minors); a felony offense under 609.2242 and 609.2243 (domestic 
395.21  assault), a felony offense of spousal abuse, a felony offense of 
395.22  child abuse or neglect, a felony offense of a crime against 
395.23  children; or attempt or conspiracy to commit any of these 
395.24  offenses as defined in Minnesota Statutes, or an offense in any 
395.25  other state or country, where the elements are substantially 
395.26  similar to any of the offenses listed in this clause; 
395.27     (2) if less than 15 years have passed since the discharge 
395.28  of the sentence imposed for the offense; and the individual has 
395.29  received a felony conviction for a violation of any of these 
395.30  offenses:  sections 609.20 (manslaughter in the first degree); 
395.31  609.205 (manslaughter in the second degree); 609.21 (criminal 
395.32  vehicular homicide and injury); 609.215 (suicide); 609.221 to 
395.33  609.2231 (assault in the first, second, third, or fourth 
395.34  degree); repeat offenses under 609.224 (assault in the fifth 
395.35  degree); 609.2242 and 609.2243 (domestic assault; sentencing; 
395.36  repeat domestic assault); repeat offenses under 609.3451 
396.1   (criminal sexual conduct in the fifth degree); 609.713 
396.2   (terroristic threats); 609.235 (use of drugs to injure or 
396.3   facilitate crime); 609.24 (simple robbery); 609.245 (aggravated 
396.4   robbery); 609.25 (kidnapping); 609.255 (false imprisonment); 
396.5   609.561 (arson in the first degree); 609.562 (arson in the 
396.6   second degree); 609.563 (arson in the third degree); repeat 
396.7   offenses under 617.23 (indecent exposure; penalties); repeat 
396.8   offenses under 617.241 (obscene materials and performances; 
396.9   distribution and exhibition prohibited; penalty); 609.71 (riot); 
396.10  609.66 (dangerous weapons); 609.67 (machine guns and 
396.11  short-barreled shotguns); 609.749 (harassment; stalking; 
396.12  penalties); 609.228 (great bodily harm caused by distribution of 
396.13  drugs); 609.2325 (criminal abuse of a vulnerable adult); 
396.14  609.2664 (manslaughter of an unborn child in the first degree); 
396.15  609.2665 (manslaughter of an unborn child in the second degree); 
396.16  609.267 (assault of an unborn child in the first degree); 
396.17  609.2671 (assault of an unborn child in the second degree); 
396.18  609.268 (injury or death of an unborn child in the commission of 
396.19  a crime); 609.378 (neglect or endangerment of a child); 609.324, 
396.20  subdivision 1 (other prohibited acts); 609.52 (theft); 609.2335 
396.21  (financial exploitation of a vulnerable adult); 609.521 
396.22  (possession of shoplifting gear); 609.582 (burglary); 609.625 
396.23  (aggravated forgery); 609.63 (forgery); 609.631 (check forgery; 
396.24  offering a forged check); 609.635 (obtaining signature by false 
396.25  pretense); 609.27 (coercion); 609.275 (attempt to coerce); 
396.26  609.687 (adulteration); 260.221 (grounds for termination of 
396.27  parental rights); and chapter 152 (drugs; controlled 
396.28  substance).  An attempt or conspiracy to commit any of these 
396.29  offenses, as each of these offenses is defined in Minnesota 
396.30  Statutes; or an offense in any other state or country, the 
396.31  elements of which are substantially similar to the elements of 
396.32  the offenses in this clause.  If the individual studied is 
396.33  convicted of one of the felonies listed in this clause, but the 
396.34  sentence is a gross misdemeanor or misdemeanor disposition, the 
396.35  look-back period for the conviction is the period applicable to 
396.36  the disposition, that is the period for gross misdemeanors or 
397.1   misdemeanors; 
397.2      (3) if less than ten years have passed since the discharge 
397.3   of the sentence imposed for the offense; and the individual has 
397.4   received a gross misdemeanor conviction for a violation of any 
397.5   of the following offenses:  sections 609.224 (assault in the 
397.6   fifth degree); 609.2242 and 609.2243 (domestic assault); 
397.7   violation of an order for protection under 518B.01, subdivision 
397.8   14; 609.3451 (criminal sexual conduct in the fifth degree); 
397.9   repeat offenses under 609.746 (interference with privacy); 
397.10  repeat offenses under 617.23 (indecent exposure); 617.241 
397.11  (obscene materials and performances); 617.243 (indecent 
397.12  literature, distribution); 617.293 (harmful materials; 
397.13  dissemination and display to minors prohibited); 609.71 (riot); 
397.14  609.66 (dangerous weapons); 609.749 (harassment; stalking; 
397.15  penalties); 609.224, subdivision 2, paragraph (c) (assault in 
397.16  the fifth degree by a caregiver against a vulnerable adult); 
397.17  609.23 (mistreatment of persons confined); 609.231 (mistreatment 
397.18  of residents or patients); 609.2325 (criminal abuse of a 
397.19  vulnerable adult); 609.233 (criminal neglect of a vulnerable 
397.20  adult); 609.2335 (financial exploitation of a vulnerable adult); 
397.21  609.234 (failure to report maltreatment of a vulnerable adult); 
397.22  609.72, subdivision 3 (disorderly conduct against a vulnerable 
397.23  adult); 609.265 (abduction); 609.378 (neglect or endangerment of 
397.24  a child); 609.377 (malicious punishment of a child); 609.324, 
397.25  subdivision 1a (other prohibited acts; minor engaged in 
397.26  prostitution); 609.33 (disorderly house); 609.52 (theft); 
397.27  609.582 (burglary); 609.631 (check forgery; offering a forged 
397.28  check); 609.275 (attempt to coerce); or an attempt or conspiracy 
397.29  to commit any of these offenses, as each of these offenses is 
397.30  defined in Minnesota Statutes; or an offense in any other state 
397.31  or country, the elements of which are substantially similar to 
397.32  the elements of any of the offenses listed in this clause.  If 
397.33  the defendant is convicted of one of the gross misdemeanors 
397.34  listed in this clause, but the sentence is a misdemeanor 
397.35  disposition, the look-back period for the conviction is the 
397.36  period applicable to misdemeanors; or 
398.1      (4) if less than seven years have passed since the 
398.2   discharge of the sentence imposed for the offense; and the 
398.3   individual has received a misdemeanor conviction for a violation 
398.4   of any of the following offenses:  sections 609.224 (assault in 
398.5   the fifth degree); 609.2242 (domestic assault); violation of an 
398.6   order for protection under 518B.01 (Domestic Abuse Act); 
398.7   violation of an order for protection under 609.3232 (protective 
398.8   order authorized; procedures; penalties); 609.746 (interference 
398.9   with privacy); 609.79 (obscene or harassing phone calls); 
398.10  609.795 (letter, telegram, or package; opening; harassment); 
398.11  617.23 (indecent exposure; penalties); 609.2672 (assault of an 
398.12  unborn child in the third degree); 617.293 (harmful materials; 
398.13  dissemination and display to minors prohibited); 609.66 
398.14  (dangerous weapons); 609.665 (spring guns); 609.2335 (financial 
398.15  exploitation of a vulnerable adult); 609.234 (failure to report 
398.16  maltreatment of a vulnerable adult); 609.52 (theft); 609.27 
398.17  (coercion); or an attempt or conspiracy to commit any of these 
398.18  offenses, as each of these offenses is defined in Minnesota 
398.19  Statutes; or an offense in any other state or country, the 
398.20  elements of which are substantially similar to the elements of 
398.21  any of the offenses listed in this clause; failure to make 
398.22  required reports under section 626.556, subdivision 3, or 
398.23  626.557, subdivision 3, for incidents in which:  (i) the final 
398.24  disposition under section 626.556 or 626.557 was substantiated 
398.25  maltreatment, and (ii) the maltreatment was recurring or 
398.26  serious; or substantiated serious or recurring maltreatment of a 
398.27  minor under section 626.556 or of a vulnerable adult under 
398.28  section 626.557 for which there is a preponderance of evidence 
398.29  that the maltreatment occurred, and that the subject was 
398.30  responsible for the maltreatment.  For the purposes of this 
398.31  section, serious maltreatment means sexual abuse; maltreatment 
398.32  resulting in death; or maltreatment resulting in serious injury 
398.33  or harm which reasonably requires the care of a physician 
398.34  whether or not the care of a physician was sought, including:; 
398.35  or abuse resulting in serious injury.  For purposes of this 
398.36  section, abuse resulting in serious injury means:  bruises, 
399.1   bites, skin laceration or tissue damage; fractures; 
399.2   dislocations; evidence of internal injuries; head injuries with 
399.3   loss of consciousness; extensive second-degree or third-degree 
399.4   burns and other burns for which complications are 
399.5   present; extensive second-degree or third-degree frostbite, and 
399.6   others for which complications are present; irreversible 
399.7   mobility or avulsion of teeth; injuries to the eyeball; 
399.8   ingestion of foreign substances and objects that are harmful; 
399.9   near drowning; and heat exhaustion or sunstroke.  For purposes 
399.10  of this section, "care of a physician" is treatment received or 
399.11  ordered by a physician, but does not include diagnostic testing, 
399.12  assessment, or observation.  For the purposes of this section, 
399.13  recurring maltreatment means more than one incident of 
399.14  maltreatment for which there is a preponderance of evidence that 
399.15  the maltreatment occurred, and that the subject was responsible 
399.16  for the maltreatment. 
399.17     Sec. 8.  Minnesota Statutes 1996, section 256.01, 
399.18  subdivision 12, is amended to read: 
399.19     Subd. 12.  [CHILD MORTALITY REVIEW PANEL.] (a) The 
399.20  commissioner shall establish a child mortality review panel for 
399.21  reviewing to review deaths of children in Minnesota, including 
399.22  deaths attributed to maltreatment or in which maltreatment may 
399.23  be a contributing cause and to review near fatalities as defined 
399.24  in section 626.556, subdivision 11d.  The commissioners of 
399.25  health, children, families, and learning, and public safety and 
399.26  the attorney general shall each designate a representative to 
399.27  the child mortality review panel.  Other panel members shall be 
399.28  appointed by the commissioner, including a board-certified 
399.29  pathologist and a physician who is a coroner or a medical 
399.30  examiner.  The purpose of the panel shall be to make 
399.31  recommendations to the state and to county agencies for 
399.32  improving the child protection system, including modifications 
399.33  in statute, rule, policy, and procedure. 
399.34     (b) The commissioner may require a county agency to 
399.35  establish a local child mortality review panel.  The 
399.36  commissioner may establish procedures for conducting local 
400.1   reviews and may require that all professionals with knowledge of 
400.2   a child mortality case participate in the local review.  In this 
400.3   section, "professional" means a person licensed to perform or a 
400.4   person performing a specific service in the child protective 
400.5   service system.  "Professional" includes law enforcement 
400.6   personnel, social service agency attorneys, educators, and 
400.7   social service, health care, and mental health care providers. 
400.8      (c) If the commissioner of human services has reason to 
400.9   believe that a child's death was caused by maltreatment or that 
400.10  maltreatment was a contributing cause, the commissioner has 
400.11  access to not public data under chapter 13 maintained by state 
400.12  agencies, statewide systems, or political subdivisions that are 
400.13  related to the child's death or circumstances surrounding the 
400.14  care of the child.  The commissioner shall also have access to 
400.15  records of private hospitals as necessary to carry out the 
400.16  duties prescribed by this section.  Access to data under this 
400.17  paragraph is limited to police investigative data; autopsy 
400.18  records and coroner or medical examiner investigative data; 
400.19  hospital, public health, or other medical records of the child; 
400.20  hospital and other medical records of the child's parent that 
400.21  relate to prenatal care; and records created by social service 
400.22  agencies that provided services to the child or family within 
400.23  three years preceding the child's death.  A state agency, 
400.24  statewide system, or political subdivision shall provide the 
400.25  data upon request of the commissioner.  Not public data may be 
400.26  shared with members of the state or local child mortality review 
400.27  panel in connection with an individual case. 
400.28     (d) Notwithstanding the data's classification in the 
400.29  possession of any other agency, data acquired by a local or 
400.30  state child mortality review panel in the exercise of its duties 
400.31  is protected nonpublic or confidential data as defined in 
400.32  section 13.02, but may be disclosed as necessary to carry out 
400.33  the purposes of the review panel.  The data is not subject to 
400.34  subpoena or discovery.  The commissioner may disclose 
400.35  conclusions of the review panel, but shall not disclose data 
400.36  that was classified as confidential or private data on 
401.1   decedents, under section 13.10, or private, confidential, or 
401.2   protected nonpublic data in the disseminating agency, except 
401.3   that the commissioner may disclose local social service agency 
401.4   data as provided in section 626.556, subdivision 11d, on 
401.5   individual cases involving a fatality or near fatality of a 
401.6   person served by the local social service agency prior to the 
401.7   date of death. 
401.8      (e) A person attending a child mortality review panel 
401.9   meeting shall not disclose what transpired at the meeting, 
401.10  except to carry out the purposes of the mortality review panel.  
401.11  The proceedings and records of the mortality review panel are 
401.12  protected nonpublic data as defined in section 13.02, 
401.13  subdivision 13, and are not subject to discovery or introduction 
401.14  into evidence in a civil or criminal action against a 
401.15  professional, the state or a county agency, arising out of the 
401.16  matters the panel is reviewing.  Information, documents, and 
401.17  records otherwise available from other sources are not immune 
401.18  from discovery or use in a civil or criminal action solely 
401.19  because they were presented during proceedings of the review 
401.20  panel.  A person who presented information before the review 
401.21  panel or who is a member of the panel shall not be prevented 
401.22  from testifying about matters within the person's knowledge.  
401.23  However, in a civil or criminal proceeding a person shall not be 
401.24  questioned about the person's presentation of information to the 
401.25  review panel or opinions formed by the person as a result of the 
401.26  review meetings.  
401.27     Sec. 9.  Minnesota Statutes 1996, section 256.01, is 
401.28  amended by adding a subdivision to read: 
401.29     Subd. 15.  [CITIZEN REVIEW PANELS.] (a) The commissioner 
401.30  shall establish a minimum of three citizen review panels to 
401.31  examine the policies and procedures of state and local welfare 
401.32  agencies to evaluate the extent to which the agencies are 
401.33  effectively discharging their child protection 
401.34  responsibilities.  Local social service agencies shall cooperate 
401.35  and work with the citizen review panels.  Where appropriate, the 
401.36  panels may examine specific cases to evaluate the effectiveness 
402.1   of child protection activities.  The panels must examine the 
402.2   extent to which the state and local agencies are meeting the 
402.3   requirements of the federal Child Abuse Prevention and Treatment 
402.4   Act and the Reporting of Maltreatment of Minors Act.  The 
402.5   commissioner may authorize mortality review panels or child 
402.6   protection teams to carry out the duties of a citizen review 
402.7   panel if membership meets or is expanded to meet the 
402.8   requirements of this section. 
402.9      (b) The panel membership must include volunteers who 
402.10  broadly represent the community in which the panel is 
402.11  established, including members who have expertise in the 
402.12  prevention and treatment of child abuse and neglect, child 
402.13  protection advocates, and representatives of the councils of 
402.14  color and ombudsperson for families. 
402.15     (c) A citizen review panel has access to the following data 
402.16  for specific case review under this paragraph:  police 
402.17  investigative data; autopsy records and coroner or medical 
402.18  examiner investigative data; hospital, public health, or other 
402.19  medical records of the child; hospital and other medical records 
402.20  of the child's parent that relate to prenatal care; records 
402.21  created by social service agencies that provided services to the 
402.22  child or family; and personnel data related to an employee's 
402.23  performance in discharging child protection responsibilities.  A 
402.24  state agency, statewide system, or political subdivision shall 
402.25  provide the data upon request of the commissioner.  Not public 
402.26  data may be shared with members of the state or local citizen 
402.27  review panel in connection with an individual case. 
402.28     (d) Notwithstanding the data's classification in the 
402.29  possession of any other agency, data acquired by a local or 
402.30  state citizen review panel in the exercise of its duties are 
402.31  protected nonpublic or confidential data as defined in section 
402.32  13.02, but may be disclosed as necessary to carry out the 
402.33  purposes of the review panel.  The data are not subject to 
402.34  subpoena or discovery.  The commissioner may disclose 
402.35  conclusions of the review panel, but may not disclose data on 
402.36  individuals that were classified as confidential or private data 
403.1   on individuals in the possession of the state agency, statewide 
403.2   system, or political subdivision from which the data were 
403.3   received, except that the commissioner may disclose local social 
403.4   service agency data as provided in section 626.556, subdivision 
403.5   11d, on individual cases involving a fatality or near fatality 
403.6   of a person served by the local social service agency prior to 
403.7   the date of death.  
403.8      (e) A person attending a citizen review panel meeting may 
403.9   not disclose what transpired at the meeting, except to carry out 
403.10  the purposes of the review panel.  The proceedings and records 
403.11  of the review panel are protected nonpublic data as defined in 
403.12  section 13.02, subdivision 13, and are not subject to discovery 
403.13  or introduction into evidence in a civil or criminal action 
403.14  against a professional, the state, or county agency arising out 
403.15  of the matters the panel is reviewing.  Information, documents, 
403.16  and records otherwise available from other sources are not 
403.17  immune from discovery or use in a civil or criminal action 
403.18  solely because they were presented during proceedings of the 
403.19  review panel.  A person who presented information before the 
403.20  review panel or who is a member of the panel is not prevented 
403.21  from testifying about matters within the person's knowledge.  
403.22  However, in a civil or criminal proceeding, a person must not be 
403.23  questioned about the person's presentation of information to the 
403.24  review panel or opinions formed by the person as a result of the 
403.25  review panel meetings. 
403.26     Sec. 10.  Minnesota Statutes 1997 Supplement, section 
403.27  256.82, subdivision 2, is amended to read: 
403.28     Subd. 2.  [FOSTER CARE MAINTENANCE PAYMENTS.] 
403.29  Notwithstanding subdivision 1, for the purposes of foster care 
403.30  maintenance payments under title IV-E of the federal Social 
403.31  Security Act, United States Code, title 42, sections 670 to 676, 
403.32  during the period beginning July 1, 1985, and ending December 
403.33  31, 1985, the county paying the maintenance costs shall be 
403.34  reimbursed for the costs from those federal funds available for 
403.35  that purpose together with an amount of state funds equal to a 
403.36  percentage of the difference between the total cost and the 
404.1   federal funds made available for payment.  This percentage shall 
404.2   not exceed the percentage specified in subdivision 1 for the aid 
404.3   to families with dependent children program.  In the event that 
404.4   the state appropriation for this purpose is less than the state 
404.5   percentage set in subdivision 1, the reimbursement shall be 
404.6   ratably reduced to the county.  Beginning January 1, 1986, for 
404.7   the purpose of foster care maintenance payments under title IV-E 
404.8   of the Social Security Act, United States Code, title 42, 
404.9   sections 670 to 676, the county paying the maintenance costs 
404.10  must be reimbursed for the costs from the federal money 
404.11  available for the purpose.  Beginning July 1, 1997, for the 
404.12  purposes of determining a child's eligibility under title IV-E 
404.13  of the Social Security Act, the placing agency shall use AFDC 
404.14  requirements in effect on June 1, 1995 July 16, 1996. 
404.15     Sec. 11.  Minnesota Statutes 1997 Supplement, section 
404.16  257.071, subdivision 1d, is amended to read: 
404.17     Subd. 1d.  [RELATIVE SEARCH; NATURE.] (a) Within six months 
404.18  after a child is initially placed in a residential facility, the 
404.19  local social service agency shall identify any relatives of the 
404.20  child and notify them of the need for a foster care home for the 
404.21  child and of the possibility of the need for a permanent 
404.22  out-of-home placement of the child, and.  Relatives should also 
404.23  be notified that a decision not to be a placement resource at 
404.24  the beginning of the case may affect the relative's right to 
404.25  have relative being considered for placement of the child placed 
404.26  with that relative later.  The relatives must be notified that 
404.27  they must keep the local social service agency informed of their 
404.28  current address in order to receive notice of any that a 
404.29  permanent placement hearing is being sought for the child.  A 
404.30  relative who fails to provide a current address to the local 
404.31  social service agency forfeits the right to notice of the 
404.32  possibility of permanent placement. 
404.33     (b) Unless relieved of this duty by the court because the 
404.34  child is placed with an appropriate relative who wishes to 
404.35  provide a permanent home for the child, when the agency 
404.36  determines that it is necessary to prepare for the permanent 
405.1   placement determination hearing, or in anticipation of filing a 
405.2   termination of parental rights petition, the agency shall send 
405.3   notice to the relatives, any adult with whom the child is 
405.4   currently residing, any adult with whom the child has resided 
405.5   for one year or longer in the past, and any adults who have 
405.6   maintained a relationship or exercised visitation with the child 
405.7   as identified in the agency case plan.  The notice must state 
405.8   that a permanent home is sought for the child and that the 
405.9   individuals receiving the notice may indicate to the agency 
405.10  their interest in providing a permanent home.  The notice must 
405.11  contain an advisory that if the relative chooses not to be a 
405.12  placement resource at the beginning of the case, this may affect 
405.13  the relative's rights to have the child placed with that 
405.14  relative permanently later on.  The notice must state that 
405.15  within 30 days of receipt of the notice an individual receiving 
405.16  the notice must indicate to the agency the individual's interest 
405.17  in providing a permanent home for the child or that the 
405.18  individual may lose the opportunity to be considered for a 
405.19  permanent placement.  This notice need not be sent if the child 
405.20  is placed with an appropriate relative who wishes to provide a 
405.21  permanent home for the child. 
405.22     Sec. 12.  Minnesota Statutes 1996, section 257.42, is 
405.23  amended to read: 
405.24     257.42 [APPROPRIATE PUBLIC AUTHORITY DEFINED.] 
405.25     The "appropriate public authorities" as used in article 3 
405.26  of the interstate compact on the placement of children shall, 
405.27  with reference to this state, mean the Minnesota department 
405.28  commissioner of human services and said department.  The 
405.29  commissioner of human services or the commissioner's delegate 
405.30  shall receive and act with reference to notices required by said 
405.31  article 3.  
405.32     Sec. 13.  Minnesota Statutes 1996, section 257.43, is 
405.33  amended to read: 
405.34     257.43 [APPROPRIATE AUTHORITY IN RECEIVING STATE DEFINED.] 
405.35     As used in paragraph (a) of article 5 of the interstate 
405.36  compact on the placement of children, the phrase "appropriate 
406.1   authority in the receiving state" with reference to this state 
406.2   shall mean the commissioner of human services or the 
406.3   commissioner's delegate.  
406.4      Sec. 14.  Minnesota Statutes 1997 Supplement, section 
406.5   257.85, subdivision 5, is amended to read: 
406.6      Subd. 5.  [RELATIVE CUSTODY ASSISTANCE AGREEMENT.] (a) A 
406.7   relative custody assistance agreement will not be effective, 
406.8   unless it is signed by the local agency and the relative 
406.9   custodian no later than 30 days after the date of the order 
406.10  establishing permanent legal and physical custody with the 
406.11  relative, except that a local agency may enter into a relative 
406.12  custody assistance agreement with a relative custodian more than 
406.13  30 days after the date of the order if it certifies that the 
406.14  delay in entering the agreement was through no fault of the 
406.15  relative custodian.  There must be a separate agreement for each 
406.16  child for whom the relative custodian is receiving relative 
406.17  custody assistance. 
406.18     (b) Regardless of when the relative custody assistance 
406.19  agreement is signed by the local agency and relative custodian, 
406.20  the effective date of the agreement shall be the first day of 
406.21  the month following the date of the order establishing permanent 
406.22  legal and physical custody or the date that the last party signs 
406.23  the agreement, whichever occurs later. 
406.24     (c) If MFIP-S is not the applicable program for a child at 
406.25  the time that a relative custody assistance agreement is entered 
406.26  on behalf of the child, when MFIP-S becomes the applicable 
406.27  program, if the relative custodian had been receiving custody 
406.28  assistance payments calculated based upon a different program, 
406.29  the amount of relative custody assistance payment under 
406.30  subdivision 7 shall be recalculated under the MFIP-S program. 
406.31     (d) The relative custody assistance agreement shall be in a 
406.32  form specified by the commissioner and shall include provisions 
406.33  relating to the following: 
406.34     (1) the responsibilities of all parties to the agreement; 
406.35     (2) the payment terms, including the financial 
406.36  circumstances of the relative custodian, the needs of the child, 
407.1   the amount and calculation of the relative custody assistance 
407.2   payments, and that the amount of the payments shall be 
407.3   reevaluated annually; 
407.4      (3) the effective date of the agreement, which shall also 
407.5   be the anniversary date for the purpose of submitting the annual 
407.6   affidavit under subdivision 8; 
407.7      (4) that failure to submit the affidavit as required by 
407.8   subdivision 8 will be grounds for terminating the agreement; 
407.9      (5) the agreement's expected duration, which shall not 
407.10  extend beyond the child's eighteenth birthday; 
407.11     (6) any specific known circumstances that could cause the 
407.12  agreement or payments to be modified, reduced, or terminated and 
407.13  the relative custodian's appeal rights under subdivision 9; 
407.14     (7) that the relative custodian must notify the local 
407.15  agency within 30 days of any of the following: 
407.16     (i) a change in the child's status; 
407.17     (ii) a change in the relationship between the relative 
407.18  custodian and the child; 
407.19     (iii) a change in composition or level of income of the 
407.20  relative custodian's family; 
407.21     (iv) a change in eligibility or receipt of benefits under 
407.22  AFDC, MFIP-S, or other assistance program; and 
407.23     (v) any other change that could affect eligibility for or 
407.24  amount of relative custody assistance; 
407.25     (8) that failure to provide notice of a change as required 
407.26  by clause (7) will be grounds for terminating the agreement; 
407.27     (9) that the amount of relative custody assistance is 
407.28  subject to the availability of state funds to reimburse the 
407.29  local agency making the payments; 
407.30     (10) that the relative custodian may choose to temporarily 
407.31  stop receiving payments under the agreement at any time by 
407.32  providing 30 days' notice to the local agency and may choose to 
407.33  begin receiving payments again by providing the same notice but 
407.34  any payments the relative custodian chooses not to receive are 
407.35  forfeit; and 
407.36     (11) that the local agency will continue to be responsible 
408.1   for making relative custody assistance payments under the 
408.2   agreement regardless of the relative custodian's place of 
408.3   residence. 
408.4      Sec. 15.  Minnesota Statutes 1997 Supplement, section 
408.5   259.22, subdivision 4, is amended to read: 
408.6      Subd. 4.  [TIME FOR FILING PETITION.] A petition shall be 
408.7   filed not later than 24 12 months after a child is placed in a 
408.8   prospective adoptive home.  If a petition is not filed by that 
408.9   time, the agency that placed the child, or, in a direct adoptive 
408.10  placement, the agency that is supervising the placement shall 
408.11  file with the district court in the county where the prospective 
408.12  adoptive parent resides a motion for an order and a report 
408.13  recommending one of the following: 
408.14     (1) that the time for filing a petition be extended because 
408.15  of the child's special needs as defined under title IV-E of the 
408.16  Social Security Act, United States Code, title 42, section 673; 
408.17     (2) that, based on a written plan for completing filing of 
408.18  the petition, including a specific timeline, to which the 
408.19  prospective adoptive parents have agreed, the time for filing a 
408.20  petition be extended long enough to complete the plan because 
408.21  such an extension is in the best interests of the child and 
408.22  additional time is needed for the child to adjust to the 
408.23  adoptive home; or 
408.24     (3) that the child be removed from the prospective adoptive 
408.25  home. 
408.26     The prospective adoptive parent must reimburse an agency 
408.27  for the cost of preparing and filing the motion and report under 
408.28  this section, unless the costs are reimbursed by the 
408.29  commissioner under section 259.67 or 259.73. 
408.30     Sec. 16.  Minnesota Statutes 1996, section 259.24, 
408.31  subdivision 1, is amended to read: 
408.32     Subdivision 1.  [EXCEPTIONS.] No child shall be adopted 
408.33  without the consent of the child's parents and the child's 
408.34  guardian, if there be one, except in the following instances: 
408.35     (a) Consent shall not be required of a parent not entitled 
408.36  to notice of the proceedings.  
409.1      (b) Consent shall not be required of a parent who has 
409.2   abandoned the child, or of a parent who has lost custody of the 
409.3   child through a divorce decree or a decree of dissolution, and 
409.4   upon whom notice has been served as required by section 259.49. 
409.5      (c) Consent shall not be required of a parent whose 
409.6   parental rights to the child have been terminated by a juvenile 
409.7   court or who has lost custody of a child through a final 
409.8   commitment of the juvenile court or through a decree in a prior 
409.9   adoption proceeding. 
409.10     (d) If there be no parent or guardian qualified to consent 
409.11  to the adoption, the consent may be given by the commissioner. 
409.12     (e) The commissioner or agency having authority to place a 
409.13  child for adoption pursuant to section 259.25, subdivision 1, 
409.14  shall have the exclusive right to consent to the adoption of 
409.15  such child.  Notwithstanding any rule to the contrary, the 
409.16  commissioner may delegate the right to consent to the adoption 
409.17  or separation of siblings, if it is in the child's best 
409.18  interest, to a local social services agency.  
409.19     Sec. 17.  Minnesota Statutes 1996, section 259.37, 
409.20  subdivision 2, is amended to read: 
409.21     Subd. 2.  [DISCLOSURE TO BIRTH PARENTS AND ADOPTIVE 
409.22  PARENTS.] An agency shall provide a disclosure statement written 
409.23  in clear, plain language to be signed by the prospective 
409.24  adoptive parents and birth parents, except that in intercountry 
409.25  adoptions, the signatures of birth parents are not required.  
409.26  The disclosure statement must contain the following information: 
409.27     (1) fees charged to the adoptive parent, including any 
409.28  policy on sliding scale fees or fee waivers and an itemization 
409.29  of the amount that will be charged for the adoption study, 
409.30  counseling, postplacement services, family of origin searches, 
409.31  birth parent expenses authorized under section 259.55, or any 
409.32  other services; 
409.33     (2) timeline for the adoptive parent to make fee payments; 
409.34     (3) likelihood, given the circumstances of the prospective 
409.35  adoptive parent and any specific program to which the 
409.36  prospective adoptive parent is applying, that an adoptive 
410.1   placement may be made and the estimated length of time for 
410.2   making an adoptive placement.  These estimates must be based on 
410.3   adoptive placements made with prospective parents in similar 
410.4   circumstances applying to a similar program with the agency 
410.5   during the immediately preceding three to five years.  If an 
410.6   agency has not been in operation for at least three years, it 
410.7   must provide summary data based on whatever adoptive placements 
410.8   it has made and may include a statement about the kind of 
410.9   efforts it will make to achieve an adoptive placement, including 
410.10  a timetable it will follow in seeking a child.  The estimates 
410.11  must include a statement that the agency cannot guarantee 
410.12  placement of a child or a time by which a child will be placed; 
410.13     (4) a statement of the services the agency will provide the 
410.14  birth and adoptive parents; 
410.15     (5) a statement prepared by the commissioner under section 
410.16  259.39 that explains the child placement and adoption process 
410.17  and the respective legal rights and responsibilities of the 
410.18  birth parent and prospective adoptive parent during the process 
410.19  including a statement that the prospective adoptive parent is 
410.20  responsible for filing an adoption petition not later than 24 12 
410.21  months after the child is placed in the prospective adoptive 
410.22  home; 
410.23     (6) a statement regarding any information the agency may 
410.24  have about attorney referral services, or about obtaining 
410.25  assistance with completing legal requirements for an adoption; 
410.26  and 
410.27     (7) an acknowledgment to be signed by the birth parent and 
410.28  prospective adoptive parent that they have received, read, and 
410.29  had the opportunity to ask questions of the agency about the 
410.30  contents of the disclosure statement. 
410.31     Sec. 18.  Minnesota Statutes 1997 Supplement, section 
410.32  259.47, subdivision 3, is amended to read: 
410.33     Subd. 3.  [PREADOPTIVE CUSTODY ORDER.] (a) Before a child 
410.34  is placed in a prospective adoptive home by a birth parent or 
410.35  legal guardian, other than an agency, the placement must be 
410.36  approved by the district court in the county where the 
411.1   prospective adoptive parent resides.  An order under this 
411.2   subdivision or subdivision 6 shall state that the prospective 
411.3   adoptive parent's right to custody of the child is subject to 
411.4   the birth parent's right to custody until the consents to the 
411.5   child's adoption become irrevocable.  At the time of placement, 
411.6   prospective adoptive parents must have for the child qualifying 
411.7   existing coverage as defined in section 62L.02, subdivision 24, 
411.8   or other similar comprehensive health care coverage.  The 
411.9   preadoptive custody order must include any agreement reached 
411.10  between the prospective adoptive parent and the birth parent 
411.11  regarding authority to make decisions for medical care of the 
411.12  child and responsibility for payment not provided by the 
411.13  adoptive parent's existing health care coverage.  The 
411.14  prospective adoptive parent must meet the residence requirements 
411.15  of section 259.22, subdivision 1, and must file with the court 
411.16  an affidavit of intent to remain a resident of the state for at 
411.17  least three months after the child is placed in the prospective 
411.18  adoptive home.  The prospective adoptive parent shall file with 
411.19  the court a notice of intent to file an adoption petition and 
411.20  submit a written motion seeking an order granting temporary 
411.21  preadoptive custody.  The notice and motion required under this 
411.22  subdivision may be considered by the court ex parte, without a 
411.23  hearing.  The prospective adoptive parent shall serve a copy of 
411.24  the notice and motion upon any parent whose consent is required 
411.25  under section 259.24 or who is named in the affidavit required 
411.26  under paragraph (b) if that person's mailing address is known.  
411.27  The motion may be filed up to 60 days before the placement is to 
411.28  be made and must include:  
411.29     (1) the adoption study required under section 259.41; 
411.30     (2) affidavits from the birth parents indicating their 
411.31  support of the motion, or, if there is no affidavit from the 
411.32  birth father, an affidavit from the birth mother under paragraph 
411.33  (b); 
411.34     (3) an itemized statement of expenses that have been paid 
411.35  and an estimate of expenses that will be paid by the prospective 
411.36  adoptive parents to the birth parents, any agency, attorney, or 
412.1   other party in connection with the prospective adoption; 
412.2      (4) the name of counsel for each party, if any; 
412.3      (5) a statement that the birth parents: 
412.4      (i) have provided the social and medical history required 
412.5   under section 259.43 to the prospective adoptive parent; 
412.6      (ii) have received the written statement of their legal 
412.7   rights and responsibilities under section 259.39; and 
412.8      (iii) have been notified of their right to receive 
412.9   counseling under subdivision 4; and 
412.10     (6) the name of the agency chosen by the adoptive parent to 
412.11  supervise the adoptive placement and complete the postplacement 
412.12  assessment required by section 259.53, subdivision 2. 
412.13     The court shall review the expense statement submitted 
412.14  under this subdivision to determine whether payments made or to 
412.15  be made by the prospective adoptive parent are lawful and in 
412.16  accordance with section 259.55, subdivision 1. 
412.17     (b) If the birth mother submits the affidavit required in 
412.18  paragraph (a), clause (2), but the birth father fails to do so, 
412.19  the birth mother must submit an additional affidavit that 
412.20  describes her good faith efforts or efforts made on her behalf 
412.21  to identify and locate the birth father for purposes of securing 
412.22  his consent.  In the following circumstances the birth mother 
412.23  may instead submit an affidavit stating on which ground she is 
412.24  exempt from making efforts to identify and locate the father: 
412.25     (1) the child was conceived as the result of incest or 
412.26  rape; 
412.27     (2) efforts to locate the father by the affiant or anyone 
412.28  acting on the affiant's behalf could reasonably result in 
412.29  physical harm to the birth mother or child; or 
412.30     (3) efforts to locate the father by the affiant or anyone 
412.31  acting on the affiant's behalf could reasonably result in severe 
412.32  emotional distress of the birth mother or child. 
412.33     A court shall consider the motion for temporary preadoptive 
412.34  custody within 30 days of receiving the motion or by the 
412.35  anticipated placement date stated in the motion, whichever comes 
412.36  sooner. 
413.1      Sec. 19.  Minnesota Statutes 1997 Supplement, section 
413.2   259.58, is amended to read: 
413.3      259.58 [COMMUNICATION OR CONTACT AGREEMENTS.] 
413.4      Adoptive parents and a birth relative may enter an 
413.5   agreement regarding communication with or contact between an 
413.6   adopted minor, adoptive parents, and a birth relative under this 
413.7   section.  An agreement may be entered between: 
413.8      (1) adoptive parents and a birth parent; 
413.9      (2) adoptive parents and a any other birth relative with 
413.10  whom the child resided before being adopted; or 
413.11     (2) (3) adoptive parents and any other birth relative if 
413.12  the child is adopted by a birth relative upon the death of both 
413.13  birth parents. 
413.14     For purposes of this section, "birth relative" means a 
413.15  parent, stepparent, grandparent, brother, sister, uncle, or aunt 
413.16  of a minor adoptee.  This relationship may be by blood or 
413.17  marriage.  For an Indian child, birth relative includes members 
413.18  of the extended family as defined by the law or custom of the 
413.19  Indian child's tribe or, in the absence of laws or custom, 
413.20  nieces, nephews, or first or second cousins, as provided in the 
413.21  Indian Child Welfare Act, United States Code, title 25, section 
413.22  1903.  
413.23     (a) An agreement regarding communication with or contact 
413.24  between minor adoptees, adoptive parents, and a birth relative 
413.25  is not legally enforceable unless the terms of the agreement are 
413.26  contained in a written court order entered in accordance with 
413.27  this section.  An order must be sought at the same time a 
413.28  petition for adoption is filed.  The court shall not enter a 
413.29  proposed order unless the terms of the order have been approved 
413.30  in writing by the prospective adoptive parents, a birth relative 
413.31  who desires to be a party to the agreement, and, if the child is 
413.32  in the custody of or under the guardianship of an agency, a 
413.33  representative of the agency.  An agreement under this section 
413.34  need not disclose the identity of the parties to be legally 
413.35  enforceable.  The court shall not enter a proposed order unless 
413.36  the court finds that the communication or contact between the 
414.1   minor adoptee, the adoptive parents, and a birth relative as 
414.2   agreed upon and contained in the proposed order would be in the 
414.3   minor adoptee's best interests. 
414.4      (b) Failure to comply with the terms of an agreed order 
414.5   regarding communication or contact that has been entered by the 
414.6   court under this section is not grounds for: 
414.7      (1) setting aside an adoption decree; or 
414.8      (2) revocation of a written consent to an adoption after 
414.9   that consent has become irrevocable. 
414.10     (c) An agreed order entered under this section may be 
414.11  enforced by filing a petition or motion with the family court 
414.12  that includes a certified copy of the order granting the 
414.13  communication, contact, or visitation, but only if the petition 
414.14  or motion is accompanied by an affidavit that the parties have 
414.15  mediated or attempted to mediate any dispute under the agreement 
414.16  or that the parties agree to a proposed modification.  The 
414.17  prevailing party may be awarded reasonable attorney's fees and 
414.18  costs.  The court shall not modify an agreed order under this 
414.19  section unless it finds that the modification is necessary to 
414.20  serve the best interests of the minor adoptee, and: 
414.21     (1) the modification is agreed to by the adoptive parent 
414.22  and the birth relative; or 
414.23     (2) exceptional circumstances have arisen since the agreed 
414.24  order was entered that justify modification of the order. 
414.25     Sec. 20.  Minnesota Statutes 1997 Supplement, section 
414.26  259.60, subdivision 2, is amended to read: 
414.27     Subd. 2.  [AMENDED BIRTH CERTIFICATE; PROCEDURE AND ORDER; 
414.28  DECREE RECOGNIZING ADOPTION.] (a) Under the procedures in 
414.29  paragraph (b), a person, whose adoption of a child under the 
414.30  laws of a foreign country is valid in this state under 
414.31  subdivision 1, may petition the district court in the county 
414.32  where the adoptive parent resides for a decree confirming and 
414.33  recognizing the adoption, changing the child's legal name, if 
414.34  requested in the petition, and for authorizing the commissioner 
414.35  of health to issue a new birth certificate for the child under 
414.36  section 144.218, subdivision 2. 
415.1      (b) A court shall issue the decree and birth 
415.2   certificate described in paragraph (a) upon receipt of the 
415.3   following documents: 
415.4      (1) a petition by the adoptive parent requesting that the 
415.5   court issue a Minnesota birth certificate, and stating that the 
415.6   adoptive parent completed adoption of the child under the laws 
415.7   of a foreign country and that the adoption is valid in this 
415.8   state under subdivision 1 and requesting that the court issue a 
415.9   decree confirming and recognizing the adoption, changing the 
415.10  child's legal name, if desired, and authorizing the commissioner 
415.11  of health to issue a new birth certificate for the child under 
415.12  section 144.218, subdivision 2.  The petition must be in the 
415.13  form of a signed, sworn, and notarized statement; 
415.14     (2) a copy of the child's original birth certificate, if 
415.15  available; 
415.16     (3) a copy of the final adoption certificate or equivalent 
415.17  as issued by the foreign jurisdiction; 
415.18     (4) a copy of the child's passport including the United 
415.19  States visa indicating IR-3 immigration status; and 
415.20     (5) certified English translations of any of the documents 
415.21  in clauses (2) to (4) that are not written in the English 
415.22  language. 
415.23     (c) Upon issuing a decree under this section, the court 
415.24  shall forward to the commissioners of health and human services 
415.25  a copy of the decree.  The court shall also complete and forward 
415.26  to the commissioner of health the certificate of adoption, 
415.27  unless another form has been specified by the commissioner of 
415.28  health. 
415.29     Sec. 21.  Minnesota Statutes 1996, section 259.67, 
415.30  subdivision 1, is amended to read: 
415.31     Subdivision 1.  [ADOPTION ASSISTANCE.] (a) The commissioner 
415.32  of human services shall enter into an adoption assistance 
415.33  agreement with an adoptive parent or parents who adopt a child 
415.34  who meets the eligibility requirements under title IV-E of the 
415.35  Social Security Act, United States Code, title 42, sections 670 
415.36  to 679a, or who otherwise meets the requirements in subdivision 
416.1   4. 
416.2      (b) Notwithstanding any provision to the contrary, no child 
416.3   on whose behalf federal title IV-E adoption assistance payments 
416.4   are to be made may be placed in an adoptive home unless a 
416.5   criminal background check under section 259.41, subdivision 3, 
416.6   paragraph (b), has been completed on the prospective adoptive 
416.7   parents and no disqualifying condition exists.  A disqualifying 
416.8   condition exists if: 
416.9      (1) a criminal background check reveals a felony conviction 
416.10  for child abuse; for spousal abuse; for a crime against children 
416.11  (including child pornography); or for a crime involving 
416.12  violence, including rape, sexual assault, or homicide, but not 
416.13  including other physical assault or battery; or 
416.14     (2) a criminal background check reveals a felony conviction 
416.15  within the past five years for physical assault, battery, or a 
416.16  drug-related offense. 
416.17     Sec. 22.  Minnesota Statutes 1996, section 260.011, 
416.18  subdivision 2, is amended to read: 
416.19     Subd. 2.  (a) The paramount consideration in all 
416.20  proceedings concerning a child alleged or found to be in need of 
416.21  protection or services is the health, safety, and best interests 
416.22  of the child.  In proceedings involving an American Indian 
416.23  child, as defined in section 257.351, subdivision 6, the best 
416.24  interests of the child must be determined consistent with 
416.25  sections 257.35 to 257.3579 and the Indian Child Welfare Act, 
416.26  United States Code, title 25, sections 1901 to 1923.  The 
416.27  purpose of the laws relating to juvenile courts is to secure for 
416.28  each child alleged or adjudicated in need of protection or 
416.29  services and under the jurisdiction of the court, the care and 
416.30  guidance, preferably in the child's own home, as will best serve 
416.31  the spiritual, emotional, mental, and physical welfare of the 
416.32  child; to provide judicial procedures which protect the welfare 
416.33  of the child; to preserve and strengthen the child's family ties 
416.34  whenever possible and in the child's best interests, removing 
416.35  the child from the custody of parents only when the child's 
416.36  welfare or safety cannot be adequately safeguarded without 
417.1   removal; and, when removal from the child's own family is 
417.2   necessary and in the child's best interests, to secure for the 
417.3   child custody, care and discipline as nearly as possible 
417.4   equivalent to that which should have been given by the parents.  
417.5      (b) The purpose of the laws relating to termination of 
417.6   parental rights is to ensure that: 
417.7      (1) reasonable efforts have been made by the social service 
417.8   agency to reunite the child with the child's parents in a 
417.9   placement that is safe and permanent; and 
417.10     (2) if placement with the parents is not reasonably 
417.11  foreseeable, to secure for the child a safe and permanent 
417.12  placement, preferably with adoptive parents. 
417.13     Nothing in this section requires reasonable efforts to be 
417.14  made in circumstances where the court has determined that the 
417.15  child has been subjected to egregious harm or the parental 
417.16  rights of the parent to a sibling have been involuntarily 
417.17  terminated. 
417.18     The paramount consideration in all proceedings for the 
417.19  termination of parental rights is the best interests of the 
417.20  child.  In proceedings involving an American Indian child, as 
417.21  defined in section 257.351, subdivision 6, the best interests of 
417.22  the child must be determined consistent with the Indian Child 
417.23  Welfare Act of 1978, United States Code, title 25, section 1901, 
417.24  et seq.  
417.25     (c) The purpose of the laws relating to children alleged or 
417.26  adjudicated to be delinquent is to promote the public safety and 
417.27  reduce juvenile delinquency by maintaining the integrity of the 
417.28  substantive law prohibiting certain behavior and by developing 
417.29  individual responsibility for lawful behavior.  This purpose 
417.30  should be pursued through means that are fair and just, that 
417.31  recognize the unique characteristics and needs of children, and 
417.32  that give children access to opportunities for personal and 
417.33  social growth.  
417.34     (d) The laws relating to juvenile courts shall be liberally 
417.35  construed to carry out these purposes.  
417.36     Sec. 23.  Minnesota Statutes 1997 Supplement, section 
418.1   260.012, is amended to read: 
418.2      260.012 [DUTY TO ENSURE PLACEMENT PREVENTION AND FAMILY 
418.3   REUNIFICATION; REASONABLE EFFORTS.] 
418.4      (a) If a child in need of protection or services is under 
418.5   the court's jurisdiction, the court shall ensure that reasonable 
418.6   efforts including culturally appropriate services by the social 
418.7   service agency are made to prevent placement or to eliminate the 
418.8   need for removal and to reunite the child with the child's 
418.9   family at the earliest possible time, consistent with the best 
418.10  interests, safety, and protection of the child.  The court may, 
418.11  upon motion and hearing, order the cessation of reasonable 
418.12  efforts if the court finds that provision of services or further 
418.13  services for the purpose of rehabilitation and reunification is 
418.14  futile and therefore unreasonable under the circumstances.  In 
418.15  determining reasonable efforts to be made with respect to a 
418.16  child and in making those reasonable efforts, the child's health 
418.17  and safety must be of paramount concern.  Reasonable efforts are 
418.18  not required if the court determines that: 
418.19     (1) a termination of parental rights petition has been 
418.20  filed stating a prima facie case that the parent has subjected 
418.21  the child to egregious harm as defined in section 260.015, 
418.22  subdivision 29, or the parental rights of the parent to a 
418.23  sibling have been terminated involuntarily; or 
418.24     (2) a determination not to proceed with a termination of 
418.25  parental rights petition on these grounds was made under section 
418.26  260.221, subdivision 1b, paragraph (b), and a permanency hearing 
418.27  is held within 30 days of the determination. 
418.28  In the case of an Indian child, in proceedings under sections 
418.29  260.172, 260.191, and 260.221 the juvenile court must make 
418.30  findings and conclusions consistent with the Indian Child 
418.31  Welfare Act of 1978, United States Code, title 25, section 1901 
418.32  et seq., as to the provision of active efforts.  If a child is 
418.33  under the court's delinquency jurisdiction, it shall be the duty 
418.34  of the court to ensure that reasonable efforts are made to 
418.35  reunite the child with the child's family at the earliest 
418.36  possible time, consistent with the best interests of the child 
419.1   and the safety of the public. 
419.2      (b) "Reasonable efforts" means the exercise of due 
419.3   diligence by the responsible social service agency to use 
419.4   appropriate and available services to meet the needs of the 
419.5   child and the child's family in order to prevent removal of the 
419.6   child from the child's family; or upon removal, services to 
419.7   eliminate the need for removal and reunite the family.  Services 
419.8   may include those listed under section 256F.07, subdivision 3, 
419.9   and other appropriate services available in the community.  The 
419.10  social service agency has the burden of demonstrating that it 
419.11  has made reasonable efforts or that provision of services or 
419.12  further services for the purpose of rehabilitation and 
419.13  reunification is futile and therefore unreasonable under the 
419.14  circumstances.  Reunification of a surviving child with a parent 
419.15  is not required if the parent has been convicted of: 
419.16     (1) a violation of, or an attempt or conspiracy to commit a 
419.17  violation of, sections 609.185 to 609.20; 609.222, subdivision 
419.18  2; or 609.223 in regard to another child of the parent; 
419.19     (2) a violation of section 609.222, subdivision 2; or 
419.20  609.223, in regard to the surviving child; or 
419.21     (3) a violation of, or an attempt or conspiracy to commit a 
419.22  violation of, United States Code, title 18, section 1111(a) or 
419.23  1112(a), in regard to another child of the parent. 
419.24     (c) The juvenile court, in proceedings under sections 
419.25  260.172, 260.191, and 260.221 shall make findings and 
419.26  conclusions as to the provision of reasonable efforts.  When 
419.27  determining whether reasonable efforts have been made, the court 
419.28  shall consider whether services to the child and family were: 
419.29     (1) relevant to the safety and protection of the child; 
419.30     (2) adequate to meet the needs of the child and family; 
419.31     (3) culturally appropriate; 
419.32     (4) available and accessible; 
419.33     (5) consistent and timely; and 
419.34     (6) realistic under the circumstances. 
419.35     In the alternative, the court may determine that provision 
419.36  of services or further services for the purpose of 
420.1   rehabilitation is futile and therefore unreasonable under the 
420.2   circumstances or that reasonable efforts are not required as 
420.3   provided in paragraph (a). 
420.4      (d) This section does not prevent out-of-home placement for 
420.5   treatment of a child with a mental disability when the child's 
420.6   diagnostic assessment or individual treatment plan indicates 
420.7   that appropriate and necessary treatment cannot be effectively 
420.8   provided outside of a residential or inpatient treatment program.
420.9      (e) If continuation of reasonable efforts described in 
420.10  paragraph (b) is determined to be inconsistent with the 
420.11  permanency plan for the child, reasonable efforts must be made 
420.12  to place the child in a timely manner in accordance with the 
420.13  permanency plan and to complete whatever steps are necessary to 
420.14  finalize the permanency plan for the child.  
420.15     (f) Reasonable efforts to place a child for adoption or in 
420.16  another permanent placement may be made concurrently with 
420.17  reasonable efforts as described in paragraphs (a) and (b).  
420.18     Sec. 24.  Minnesota Statutes 1997 Supplement, section 
420.19  260.015, subdivision 2a, is amended to read: 
420.20     Subd. 2a.  [CHILD IN NEED OF PROTECTION OR SERVICES.] 
420.21  "Child in need of protection or services" means a child who is 
420.22  in need of protection or services because the child: 
420.23     (1) is abandoned or without parent, guardian, or custodian; 
420.24     (2)(i) has been a victim of physical or sexual abuse, (ii) 
420.25  resides with or has resided with a victim of domestic child 
420.26  abuse as defined in subdivision 24, (iii) resides with or would 
420.27  reside with a perpetrator of domestic child abuse or child abuse 
420.28  as defined in subdivision 28, or (iv) is a victim of emotional 
420.29  maltreatment as defined in subdivision 5a; 
420.30     (3) is without necessary food, clothing, shelter, 
420.31  education, or other required care for the child's physical or 
420.32  mental health or morals because the child's parent, guardian, or 
420.33  custodian is unable or unwilling to provide that care; 
420.34     (4) is without the special care made necessary by a 
420.35  physical, mental, or emotional condition because the child's 
420.36  parent, guardian, or custodian is unable or unwilling to provide 
421.1   that care; 
421.2      (5) is medically neglected, which includes, but is not 
421.3   limited to, the withholding of medically indicated treatment 
421.4   from a disabled infant with a life-threatening condition.  The 
421.5   term "withholding of medically indicated treatment" means the 
421.6   failure to respond to the infant's life-threatening conditions 
421.7   by providing treatment, including appropriate nutrition, 
421.8   hydration, and medication which, in the treating physician's or 
421.9   physicians' reasonable medical judgment, will be most likely to 
421.10  be effective in ameliorating or correcting all conditions, 
421.11  except that the term does not include the failure to provide 
421.12  treatment other than appropriate nutrition, hydration, or 
421.13  medication to an infant when, in the treating physician's or 
421.14  physicians' reasonable medical judgment: 
421.15     (i) the infant is chronically and irreversibly comatose; 
421.16     (ii) the provision of the treatment would merely prolong 
421.17  dying, not be effective in ameliorating or correcting all of the 
421.18  infant's life-threatening conditions, or otherwise be futile in 
421.19  terms of the survival of the infant; or 
421.20     (iii) the provision of the treatment would be virtually 
421.21  futile in terms of the survival of the infant and the treatment 
421.22  itself under the circumstances would be inhumane; 
421.23     (6) is one whose parent, guardian, or other custodian for 
421.24  good cause desires to be relieved of the child's care and 
421.25  custody; 
421.26     (7) has been placed for adoption or care in violation of 
421.27  law; 
421.28     (8) is without proper parental care because of the 
421.29  emotional, mental, or physical disability, or state of 
421.30  immaturity of the child's parent, guardian, or other custodian; 
421.31     (9) is one whose behavior, condition, or environment is 
421.32  such as to be injurious or dangerous to the child or others.  An 
421.33  injurious or dangerous environment may include, but is not 
421.34  limited to, the exposure of a child to criminal activity in the 
421.35  child's home; 
421.36     (10) has engaged in prostitution as defined in section 
422.1   609.321, subdivision 9; 
422.2      (10) (11) has committed a delinquent act before becoming 
422.3   ten years old; 
422.4      (11) (12) is a runaway; 
422.5      (12) (13) is an habitual truant; 
422.6      (13) (14) has been found incompetent to proceed or has been 
422.7   found not guilty by reason of mental illness or mental 
422.8   deficiency in connection with a delinquency proceeding, a 
422.9   certification under section 260.125, an extended jurisdiction 
422.10  juvenile prosecution, or a proceeding involving a juvenile petty 
422.11  offense; 
422.12     (14) (15) is one whose custodial parent's parental rights 
422.13  to another child have been involuntarily terminated within the 
422.14  past five years; or 
422.15     (15) (16) has been found by the court to have committed 
422.16  domestic abuse perpetrated by a minor under Laws 1997, chapter 
422.17  239, article 10, sections 2 to 26, has been ordered excluded 
422.18  from the child's parent's home by an order for protection/minor 
422.19  respondent, and the parent or guardian is either unwilling or 
422.20  unable to provide an alternative safe living arrangement for the 
422.21  child. 
422.22     Sec. 25.  Minnesota Statutes 1997 Supplement, section 
422.23  260.015, subdivision 29, is amended to read: 
422.24     Subd. 29.  [EGREGIOUS HARM.] "Egregious harm" means the 
422.25  infliction of bodily harm to a child or neglect of a child which 
422.26  demonstrates a grossly inadequate ability to provide minimally 
422.27  adequate parental care.  The egregious harm need not have 
422.28  occurred in the state or in the county where a termination of 
422.29  parental rights action is otherwise properly venued.  Egregious 
422.30  harm includes, but is not limited to: 
422.31     (1) conduct towards a child that constitutes a violation of 
422.32  sections 609.185 to 609.21, 609.222, subdivision 2, 609.223, or 
422.33  any other similar law of any other state; 
422.34     (2) the infliction of "substantial bodily harm" to a child, 
422.35  as defined in section 609.02, subdivision 8; 
422.36     (3) conduct towards a child that constitutes felony 
423.1   malicious punishment of a child under section 609.377; 
423.2      (4) conduct towards a child that constitutes felony 
423.3   unreasonable restraint of a child under section 609.255, 
423.4   subdivision 3; 
423.5      (5) conduct towards a child that constitutes felony neglect 
423.6   or endangerment of a child under section 609.378; 
423.7      (6) conduct towards a child that constitutes assault under 
423.8   section 609.221, 609.222, or 609.223; 
423.9      (7) conduct towards a child that constitutes solicitation, 
423.10  inducement, or promotion of prostitution under section 609.322; 
423.11     (8) conduct towards a child that constitutes receiving 
423.12  profit derived from prostitution under section 609.323; or 
423.13     (9) conduct toward a child that constitutes a violation of 
423.14  murder or voluntary manslaughter as defined by United States 
423.15  Code, title 18, section 1111(a) or 1112(a); or 
423.16     (10) conduct toward a child that constitutes aiding or 
423.17  abetting, attempting, conspiring, or soliciting to commit a 
423.18  murder or voluntary manslaughter that constitutes a violation of 
423.19  United States Code, title 18, section 1111(a) or 1112(a). 
423.20     Sec. 26.  Minnesota Statutes 1996, section 260.141, is 
423.21  amended by adding a subdivision to read: 
423.22     Subd. 4.  [NOTICE TO FOSTER PARENTS AND PREADOPTIVE PARENTS 
423.23  AND RELATIVES.] The foster parents, if any, of a child and any 
423.24  preadoptive parent or relative providing care for the child must 
423.25  be provided notice of and an opportunity to be heard in any 
423.26  review or hearing to be held with respect to the child.  Any 
423.27  other relative may also request, and must be granted, a notice 
423.28  and the opportunity to be heard under this section.  This 
423.29  subdivision does not require that a foster parent, preadoptive 
423.30  parent, or relative providing care for the child be made a party 
423.31  to a review or hearing solely on the basis of the notice and 
423.32  opportunity to be heard.  
423.33     Sec. 27.  Minnesota Statutes 1997 Supplement, section 
423.34  260.161, subdivision 2, is amended to read: 
423.35     Subd. 2.  [PUBLIC INSPECTION OF RECORDS.] Except as 
423.36  otherwise provided in this section, and except for (a) Legal 
424.1   records arising from proceedings or portions of proceedings that 
424.2   are public under section 260.155, subdivision 1, are open to 
424.3   public inspection. 
424.4      (b) The following records from proceedings or portions of 
424.5   proceedings involving a child in need of protection or services 
424.6   that are open to the public as authorized by supreme court order 
424.7   and court rules are accessible to the public unless the court 
424.8   determines that access should be restricted because of the 
424.9   intensely personal nature of the information: 
424.10     (1) the summons and petition; 
424.11     (2) affidavits of publication and service; 
424.12     (3) certificates of representation; 
424.13     (4) court orders; 
424.14     (5) hearing and trial notices, witness lists, and 
424.15  subpoenas; 
424.16     (6) motions and legal memoranda; 
424.17     (7) exhibits introduced at hearings or trial that are not 
424.18  inaccessible under paragraph (c); 
424.19     (8) birth certificates; and 
424.20     (9) all other documents not listed as inaccessible to the 
424.21  public under paragraph (c). 
424.22     (c) The following records are not accessible to the public 
424.23  under paragraph (b): 
424.24     (1) written, audiotaped, or videotaped information from the 
424.25  social service agency, except to the extent the information 
424.26  appears in the petition, court orders, or other documents that 
424.27  are accessible under paragraph (b); 
424.28     (2) child protection intake or screening notes; 
424.29     (3) documents identifying reporters of maltreatment, unless 
424.30  the names and other identifying information are redacted; 
424.31     (4) guardian ad litem reports; 
424.32     (5) victim statements and addresses and telephone numbers; 
424.33     (6) documents identifying nonparty witnesses under the age 
424.34  of 18, unless the names and other identifying information are 
424.35  redacted; 
424.36     (7) transcripts of testimony taken during closed hearing; 
425.1      (8) fingerprinting materials; 
425.2      (9) psychological, psychiatric, and chemical dependency 
425.3   evaluations; 
425.4      (10) presentence evaluations of juveniles and probation 
425.5   reports; 
425.6      (11) medical records and test results; 
425.7      (12) reports issued by sexual predator programs; 
425.8      (13) diversion records of juveniles; and 
425.9      (14) any document which the court, upon its own motion or 
425.10  upon motion of a party, orders inaccessible to serve the best 
425.11  interests of the child. 
425.12     In addition, records that are accessible to the public 
425.13  under paragraph (b) become inaccessible to the public if one 
425.14  year has elapsed since either the proceeding was dismissed or 
425.15  the court's jurisdiction over the matter was terminated. 
425.16     (d) Except as otherwise provided by this section, none of 
425.17  the records of the juvenile court and none of the records 
425.18  relating to an appeal from a nonpublic juvenile court 
425.19  proceeding, except the written appellate opinion, shall be open 
425.20  to public inspection or their contents disclosed except (a) by 
425.21  order of a court, (b) as required by sections 245A.04, 611A.03, 
425.22  611A.04, 611A.06, and 629.73, or (c) the name of a juvenile who 
425.23  is the subject of a delinquency petition shall be released to 
425.24  the victim of the alleged delinquent act upon the victim's 
425.25  request; unless it reasonably appears that the request is 
425.26  prompted by a desire on the part of the requester to engage in 
425.27  unlawful activities.  The records of juvenile probation officers 
425.28  and county home schools are records of the court for the 
425.29  purposes of this subdivision.  Court services data relating to 
425.30  delinquent acts that are contained in records of the juvenile 
425.31  court may be released as allowed under section 13.84, 
425.32  subdivision 5a.  This subdivision applies to all proceedings 
425.33  under this chapter, including appeals from orders of the 
425.34  juvenile court, except that this subdivision does not apply to 
425.35  proceedings under section 260.255, 260.261, or 260.315 when the 
425.36  proceeding involves an adult defendant.  The court shall 
426.1   maintain the confidentiality of adoption files and records in 
426.2   accordance with the provisions of laws relating to adoptions.  
426.3   In juvenile court proceedings any report or social history 
426.4   furnished to the court shall be open to inspection by the 
426.5   attorneys of record and the guardian ad litem a reasonable time 
426.6   before it is used in connection with any proceeding before the 
426.7   court. 
426.8      (e) When a judge of a juvenile court, or duly authorized 
426.9   agent of the court, determines under a proceeding under this 
426.10  chapter that a child has violated a state or local law, 
426.11  ordinance, or regulation pertaining to the operation of a motor 
426.12  vehicle on streets and highways, except parking violations, the 
426.13  judge or agent shall immediately report the violation to the 
426.14  commissioner of public safety.  The report must be made on a 
426.15  form provided by the department of public safety and must 
426.16  contain the information required under section 169.95. 
426.17     Sec. 28.  Minnesota Statutes 1996, section 260.172, 
426.18  subdivision 1, is amended to read: 
426.19     Subdivision 1.  [HEARING AND RELEASE REQUIREMENTS.] (a) If 
426.20  a child was taken into custody under section 260.165, 
426.21  subdivision 1, clause (a) or (c)(2), the court shall hold a 
426.22  hearing within 72 hours of the time the child was taken into 
426.23  custody, excluding Saturdays, Sundays, and holidays, to 
426.24  determine whether the child should continue in custody.  
426.25     (b) In all other cases, the court shall hold a detention 
426.26  hearing: 
426.27     (1) within 36 hours of the time the child was taken into 
426.28  custody, excluding Saturdays, Sundays, and holidays, if the 
426.29  child is being held at a juvenile secure detention facility or 
426.30  shelter care facility; or 
426.31     (2) within 24 hours of the time the child was taken into 
426.32  custody, excluding Saturdays, Sundays, and holidays, if the 
426.33  child is being held at an adult jail or municipal lockup.  
426.34     (c) Unless there is reason to believe that the child would 
426.35  endanger self or others, not return for a court hearing, run 
426.36  away from the child's parent, guardian, or custodian or 
427.1   otherwise not remain in the care or control of the person to 
427.2   whose lawful custody the child is released, or that the child's 
427.3   health or welfare would be immediately endangered, the child 
427.4   shall be released to the custody of a parent, guardian, 
427.5   custodian, or other suitable person, subject to reasonable 
427.6   conditions of release including, but not limited to, a 
427.7   requirement that the child undergo a chemical use assessment as 
427.8   provided in section 260.151, subdivision 1.  In determining 
427.9   whether the child's health or welfare would be immediately 
427.10  endangered, the court shall consider whether the child would 
427.11  reside with a perpetrator of domestic child abuse. In a 
427.12  proceeding regarding a child in need of protection or services, 
427.13  the court, before determining whether a child should continue in 
427.14  custody, shall also make a determination, consistent with 
427.15  section 260.012 as to whether reasonable efforts, or in the case 
427.16  of an Indian child, active efforts, according to the Indian 
427.17  Child Welfare Act of 1978, United States Code, title 25, section 
427.18  1912(d), were made to prevent placement or to reunite the child 
427.19  with the child's family, or that reasonable efforts were not 
427.20  possible.  The court shall also determine whether there are 
427.21  available services that would prevent the need for further 
427.22  detention. 
427.23     If the court finds the social services agency's preventive 
427.24  or reunification efforts have not been reasonable but further 
427.25  preventive or reunification efforts could not permit the child 
427.26  to safely remain at home, the court may nevertheless authorize 
427.27  or continue the removal of the child. 
427.28     The court may determine at the detention hearing, or at any 
427.29  time prior to an adjudicatory hearing, that reasonable efforts 
427.30  are not required because the facts, if proved, will demonstrate 
427.31  that the parent has subjected the child to egregious harm as 
427.32  defined in section 260.015, subdivision 29, or the parental 
427.33  rights of the parent to a sibling of the child have been 
427.34  terminated involuntarily.  
427.35     Sec. 29.  Minnesota Statutes 1997 Supplement, section 
427.36  260.191, subdivision 1, is amended to read: 
428.1      Subdivision 1.  [DISPOSITIONS.] (a) If the court finds that 
428.2   the child is in need of protection or services or neglected and 
428.3   in foster care, it shall enter an order making any of the 
428.4   following dispositions of the case: 
428.5      (1) place the child under the protective supervision of the 
428.6   local social services agency or child-placing agency in the 
428.7   child's own home under conditions prescribed by the court 
428.8   directed to the correction of the child's need for protection or 
428.9   services; 
428.10     (2) transfer legal custody to one of the following: 
428.11     (i) a child-placing agency; or 
428.12     (ii) the local social services agency. 
428.13     In placing a child whose custody has been transferred under 
428.14  this paragraph, the agencies shall follow the order of 
428.15  preference stated in section 260.181, subdivision 3; 
428.16     (3) if the child is in need of special treatment and care 
428.17  for reasons of physical or mental health, the court may order 
428.18  the child's parent, guardian, or custodian to provide it.  If 
428.19  the parent, guardian, or custodian fails or is unable to provide 
428.20  this treatment or care, the court may order it provided.  The 
428.21  court shall not transfer legal custody of the child for the 
428.22  purpose of obtaining special treatment or care solely because 
428.23  the parent is unable to provide the treatment or care.  If the 
428.24  court's order for mental health treatment is based on a 
428.25  diagnosis made by a treatment professional, the court may order 
428.26  that the diagnosing professional not provide the treatment to 
428.27  the child if it finds that such an order is in the child's best 
428.28  interests; or 
428.29     (4) if the court believes that the child has sufficient 
428.30  maturity and judgment and that it is in the best interests of 
428.31  the child, the court may order a child 16 years old or older to 
428.32  be allowed to live independently, either alone or with others as 
428.33  approved by the court under supervision the court considers 
428.34  appropriate, if the county board, after consultation with the 
428.35  court, has specifically authorized this dispositional 
428.36  alternative for a child. 
429.1      (b) If the child was adjudicated in need of protection or 
429.2   services because the child is a runaway or habitual truant, the 
429.3   court may order any of the following dispositions in addition to 
429.4   or as alternatives to the dispositions authorized under 
429.5   paragraph (a): 
429.6      (1) counsel the child or the child's parents, guardian, or 
429.7   custodian; 
429.8      (2) place the child under the supervision of a probation 
429.9   officer or other suitable person in the child's own home under 
429.10  conditions prescribed by the court, including reasonable rules 
429.11  for the child's conduct and the conduct of the parents, 
429.12  guardian, or custodian, designed for the physical, mental, and 
429.13  moral well-being and behavior of the child; or with the consent 
429.14  of the commissioner of corrections, place the child in a group 
429.15  foster care facility which is under the commissioner's 
429.16  management and supervision; 
429.17     (3) subject to the court's supervision, transfer legal 
429.18  custody of the child to one of the following: 
429.19     (i) a reputable person of good moral character.  No person 
429.20  may receive custody of two or more unrelated children unless 
429.21  licensed to operate a residential program under sections 245A.01 
429.22  to 245A.16; or 
429.23     (ii) a county probation officer for placement in a group 
429.24  foster home established under the direction of the juvenile 
429.25  court and licensed pursuant to section 241.021; 
429.26     (4) require the child to pay a fine of up to $100.  The 
429.27  court shall order payment of the fine in a manner that will not 
429.28  impose undue financial hardship upon the child; 
429.29     (5) require the child to participate in a community service 
429.30  project; 
429.31     (6) order the child to undergo a chemical dependency 
429.32  evaluation and, if warranted by the evaluation, order 
429.33  participation by the child in a drug awareness program or an 
429.34  inpatient or outpatient chemical dependency treatment program; 
429.35     (7) if the court believes that it is in the best interests 
429.36  of the child and of public safety that the child's driver's 
430.1   license or instruction permit be canceled, the court may order 
430.2   the commissioner of public safety to cancel the child's license 
430.3   or permit for any period up to the child's 18th birthday.  If 
430.4   the child does not have a driver's license or permit, the court 
430.5   may order a denial of driving privileges for any period up to 
430.6   the child's 18th birthday.  The court shall forward an order 
430.7   issued under this clause to the commissioner, who shall cancel 
430.8   the license or permit or deny driving privileges without a 
430.9   hearing for the period specified by the court.  At any time 
430.10  before the expiration of the period of cancellation or denial, 
430.11  the court may, for good cause, order the commissioner of public 
430.12  safety to allow the child to apply for a license or permit, and 
430.13  the commissioner shall so authorize; 
430.14     (8) order that the child's parent or legal guardian deliver 
430.15  the child to school at the beginning of each school day for a 
430.16  period of time specified by the court; or 
430.17     (9) require the child to perform any other activities or 
430.18  participate in any other treatment programs deemed appropriate 
430.19  by the court.  
430.20     To the extent practicable, the court shall enter a 
430.21  disposition order the same day it makes a finding that a child 
430.22  is in need of protection or services or neglected and in foster 
430.23  care, but in no event more than 15 days after the finding unless 
430.24  the court finds that the best interests of the child will be 
430.25  served by granting a delay.  If the child was under eight years 
430.26  of age at the time the petition was filed, the disposition order 
430.27  must be entered within ten days of the finding and the court may 
430.28  not grant a delay unless good cause is shown and the court finds 
430.29  the best interests of the child will be served by the delay. 
430.30     (c) If a child who is 14 years of age or older is 
430.31  adjudicated in need of protection or services because the child 
430.32  is a habitual truant and truancy procedures involving the child 
430.33  were previously dealt with by a school attendance review board 
430.34  or county attorney mediation program under section 260A.06 or 
430.35  260A.07, the court shall order a cancellation or denial of 
430.36  driving privileges under paragraph (b), clause (7), for any 
431.1   period up to the child's 18th birthday. 
431.2      (d) In the case of a child adjudicated in need of 
431.3   protection or services because the child has committed domestic 
431.4   abuse and been ordered excluded from the child's parent's home, 
431.5   the court shall dismiss jurisdiction if the court, at any time, 
431.6   finds the parent is able or willing to provide an alternative 
431.7   safe living arrangement for the child, as defined in Laws 1997, 
431.8   chapter 239, article 10, section 2. 
431.9      Sec. 30.  Minnesota Statutes 1997 Supplement, section 
431.10  260.191, subdivision 1a, is amended to read: 
431.11     Subd. 1a.  [WRITTEN FINDINGS.] Any order for a disposition 
431.12  authorized under this section shall contain written findings of 
431.13  fact to support the disposition ordered, and shall also set 
431.14  forth in writing the following information: 
431.15     (a) Why the best interests of the child are served by the 
431.16  disposition ordered; 
431.17     (b) What alternative dispositions were considered by the 
431.18  court and why such dispositions were not appropriate in the 
431.19  instant case; 
431.20     (c) How the court's disposition complies with the 
431.21  requirements of section 260.181, subdivision 3; and 
431.22     (d) Whether reasonable efforts consistent with section 
431.23  260.012 were made to prevent or eliminate the necessity of the 
431.24  child's removal and to reunify the family after removal.  The 
431.25  court's findings must include a brief description of what 
431.26  preventive and reunification efforts were made and why further 
431.27  efforts could not have prevented or eliminated the necessity of 
431.28  removal or that reasonable efforts were not required under 
431.29  section 260.012 or 260.172, subdivision 1. 
431.30     If the court finds that the social services agency's 
431.31  preventive or reunification efforts have not been reasonable but 
431.32  that further preventive or reunification efforts could not 
431.33  permit the child to safely remain at home, the court may 
431.34  nevertheless authorize or continue the removal of the child. 
431.35     Sec. 31.  Minnesota Statutes 1997 Supplement, section 
431.36  260.191, subdivision 3a, is amended to read: 
432.1      Subd. 3a.  [COURT REVIEW OF OUT-OF-HOME PLACEMENTS.] (a) If 
432.2   the court places a child in a residential facility, as defined 
432.3   in section 257.071, subdivision 1, the court shall review the 
432.4   out-of-home placement at least every six months to determine 
432.5   whether continued out-of-home placement is necessary and 
432.6   appropriate or whether the child should be returned home.  The 
432.7   court shall review agency efforts pursuant to section 257.072, 
432.8   subdivision 1, and order that the efforts continue if the agency 
432.9   has failed to perform the duties under that section.  The court 
432.10  shall review the case plan and may modify the case plan as 
432.11  provided under subdivisions 1e and 2.  If the court orders 
432.12  continued out-of-home placement, the court shall notify the 
432.13  parents of the provisions of subdivision 3b. 
432.14     (b) When the court determines that a permanent placement 
432.15  hearing is necessary because there is a likelihood that the 
432.16  child will not return to a parent's care, the court may 
432.17  authorize the agency with custody of the child to send the 
432.18  notice provided in this paragraph to any adult with whom the 
432.19  child is currently residing, any adult with whom the child has 
432.20  resided for one year or longer in the past, any adult who has 
432.21  maintained a relationship or exercised visitation with the child 
432.22  as identified in the agency case plan for the child or 
432.23  demonstrated an interest in the child, and any relative who has 
432.24  provided a current address to the local social service agency.  
432.25  This notice must not be provided to a parent whose parental 
432.26  rights to the child have been terminated under section 260.221, 
432.27  subdivision 1.  The notice must state that a permanent home is 
432.28  sought for the child and that individuals receiving the notice 
432.29  may indicate to the agency within 30 days their interest in 
432.30  providing a permanent home section 257.071, subdivision 1d, 
432.31  paragraph (b), or may modify the requirements of the agency 
432.32  under section 257.071, subdivision 1d, paragraph (b), or may 
432.33  completely relieve the responsible social service agency of the 
432.34  requirements of section 257.071, subdivision 1d, paragraph (b), 
432.35  when the child is placed with an appropriate relative who wishes 
432.36  to provide a permanent home for the child.  The actions ordered 
433.1   by the court under this section must be consistent with the best 
433.2   interests, safety, and welfare of the child.  
433.3      Sec. 32.  Minnesota Statutes 1997 Supplement, section 
433.4   260.191, subdivision 3b, is amended to read: 
433.5      Subd. 3b.  [REVIEW OF COURT ORDERED PLACEMENTS; PERMANENT 
433.6   PLACEMENT DETERMINATION.] (a) The court shall conduct a hearing 
433.7   to determine the permanent status of a child not later than 12 
433.8   months after the child is placed out of the home of the parent, 
433.9   except that if the child was under eight years of age at the 
433.10  time a petition that the child is in need of protection or 
433.11  services was filed, the hearing must be conducted no later than 
433.12  six months after the child is placed out of the home of the 
433.13  parents. 
433.14     For purposes of this subdivision, the date of the child's 
433.15  placement out of the home of the parent is the earlier of the 
433.16  first court-ordered placement or the first court-approved 
433.17  placement under section 257.071, subdivision 3, of a child who 
433.18  had been in voluntary placement 60 days after the date on which 
433.19  the child has been voluntarily placed out of the home. 
433.20     For purposes of this subdivision, 12 months is calculated 
433.21  as follows: 
433.22     (1) during the pendency of a petition alleging that a child 
433.23  is in need of protection or services, all time periods when a 
433.24  child is placed out of the home of the parent are cumulated; 
433.25     (2) if a child has been placed out of the home of the 
433.26  parent within the previous five years in connection with one or 
433.27  more prior petitions for a child in need of protection or 
433.28  services, the lengths of all prior time periods when the child 
433.29  was placed out of the home within the previous five years and 
433.30  under the current petition, are cumulated.  If a child under 
433.31  this clause has been out of the home for 12 months or more, the 
433.32  court, if it is in the best interests of the child, may extend 
433.33  the total time the child may continue out of the home under the 
433.34  current petition up to an additional six months before making a 
433.35  permanency determination.  
433.36     (b) Not later than ten days prior to this hearing, the 
434.1   responsible social service agency shall file pleadings to 
434.2   establish the basis for the permanent placement determination.  
434.3   Notice of the hearing and copies of the pleadings must be 
434.4   provided pursuant to section 260.141.  If a termination of 
434.5   parental rights petition is filed before the date required for 
434.6   the permanency planning determination, no hearing need be 
434.7   conducted under this subdivision.  The court shall determine 
434.8   whether the child is to be returned home or, if not, what 
434.9   permanent placement is consistent with the child's best 
434.10  interests.  The "best interests of the child" means all relevant 
434.11  factors to be considered and evaluated. 
434.12     (c) At a hearing under this subdivision, if the child was 
434.13  under eight years of age at the time a petition that the child 
434.14  is in need of protection or services was filed, the court shall 
434.15  review the progress of the case and the case plan, including the 
434.16  provision of services.  The court may order the local social 
434.17  service agency to show cause why it should not file a 
434.18  termination of parental rights petition.  Cause may include, but 
434.19  is not limited to, the following conditions: 
434.20     (1) the parents or guardians have maintained regular 
434.21  contact with the child, the parents are complying with the 
434.22  court-ordered case plan, and the child would benefit from 
434.23  continuing this relationship; 
434.24     (2) grounds for termination under section 260.221 do not 
434.25  exist; or 
434.26     (3) the permanent plan for the child is transfer of 
434.27  permanent legal and physical custody to a relative. 
434.28     (d) If the child is not returned to the home, the 
434.29  dispositions available for permanent placement determination are:
434.30     (1) permanent legal and physical custody to a relative in 
434.31  the best interests of the child.  In transferring permanent 
434.32  legal and physical custody to a relative, the juvenile court 
434.33  shall follow the standards and procedures applicable under 
434.34  chapter 257 or 518.  An order establishing permanent legal or 
434.35  physical custody under this subdivision must be filed with the 
434.36  family court.  A transfer of legal and physical custody includes 
435.1   responsibility for the protection, education, care, and control 
435.2   of the child and decision making on behalf of the child.  The 
435.3   social service agency may petition on behalf of the proposed 
435.4   custodian; 
435.5      (2) termination of parental rights and adoption; the social 
435.6   service agency shall file a petition for termination of parental 
435.7   rights under section 260.231 and all the requirements of 
435.8   sections 260.221 to 260.245 remain applicable.  An adoption 
435.9   completed subsequent to a determination under this subdivision 
435.10  may include an agreement for communication or contact under 
435.11  section 259.58; or 
435.12     (3) long-term foster care; transfer of legal custody and 
435.13  adoption are preferred permanency options for a child who cannot 
435.14  return home.  The court may order a child into long-term foster 
435.15  care only if it finds that neither an award of legal and 
435.16  physical custody to a relative, nor termination of parental 
435.17  rights nor adoption is in the child's best interests.  Further, 
435.18  the court may only order long-term foster care for the child 
435.19  under this section if it finds the following: 
435.20     (i) the child has reached age 12 and reasonable efforts by 
435.21  the responsible social service agency have failed to locate an 
435.22  adoptive family for the child; or 
435.23     (ii) the child is a sibling of a child described in clause 
435.24  (i) and the siblings have a significant positive relationship 
435.25  and are ordered into the same long-term foster care home; or 
435.26     (4) foster care for a specified period of time may be 
435.27  ordered only if: 
435.28     (i) the sole basis for an adjudication that a child is in 
435.29  need of protection or services is that the child is a runaway, 
435.30  is an habitual truant, or committed a delinquent act before age 
435.31  ten; and 
435.32     (ii) the court finds that foster care for a specified 
435.33  period of time is in the best interests of the child. 
435.34     (d) In ordering a permanent placement of a child, the court 
435.35  must be governed by the best interests of the child, including a 
435.36  review of the relationship between the child and relatives and 
436.1   the child and other important persons with whom the child has 
436.2   resided or had significant contact. 
436.3      (e) Once a permanent placement determination has been made 
436.4   and permanent placement has been established, further court 
436.5   reviews and dispositional hearings are only necessary if the 
436.6   placement is made under paragraph (c), clause (4), review is 
436.7   otherwise required by federal law, an adoption has not yet been 
436.8   finalized, or there is a disruption of the permanent or 
436.9   long-term placement.  
436.10     (f) An order under this subdivision must include the 
436.11  following detailed findings: 
436.12     (1) how the child's best interests are served by the order; 
436.13     (2) the nature and extent of the responsible social service 
436.14  agency's reasonable efforts, or, in the case of an Indian child, 
436.15  active efforts, to reunify the child with the parent or parents; 
436.16     (3) the parent's or parents' efforts and ability to use 
436.17  services to correct the conditions which led to the out-of-home 
436.18  placement; 
436.19     (4) whether the conditions which led to the out-of-home 
436.20  placement have been corrected so that the child can return home; 
436.21  and 
436.22     (5) if the child cannot be returned home, whether there is 
436.23  a substantial probability of the child being able to return home 
436.24  in the next six months.  
436.25     (g) An order for permanent legal and physical custody of a 
436.26  child may be modified under sections 518.18 and 518.185.  The 
436.27  social service agency is a party to the proceeding and must 
436.28  receive notice.  An order for long-term foster care is 
436.29  reviewable upon motion and a showing by the parent of a 
436.30  substantial change in the parent's circumstances such that the 
436.31  parent could provide appropriate care for the child and that 
436.32  removal of the child from the child's permanent placement and 
436.33  the return to the parent's care would be in the best interest of 
436.34  the child. 
436.35     Sec. 33.  Minnesota Statutes 1996, section 260.221, as 
436.36  amended by Laws 1997, chapters 218, sections 10 and 11, and 239, 
437.1   article 6, section 30, is amended to read: 
437.2      260.221 [GROUNDS FOR TERMINATION OF PARENTAL RIGHTS.] 
437.3      Subdivision 1.  [VOLUNTARY AND INVOLUNTARY.] The juvenile 
437.4   court may upon petition, terminate all rights of a parent to a 
437.5   child: 
437.6      (a) with the written consent of a parent who for good cause 
437.7   desires to terminate parental rights; or 
437.8      (b) if it finds that one or more of the following 
437.9   conditions exist: 
437.10     (1) that the parent has abandoned the child; or 
437.11     (2) that the parent has substantially, continuously, or 
437.12  repeatedly refused or neglected to comply with the duties 
437.13  imposed upon that parent by the parent and child relationship, 
437.14  including but not limited to providing the child with necessary 
437.15  food, clothing, shelter, education, and other care and control 
437.16  necessary for the child's physical, mental, or emotional health 
437.17  and development, if the parent is physically and financially 
437.18  able, and reasonable efforts by the social service agency have 
437.19  failed to correct the conditions that formed the basis of the 
437.20  petition; or 
437.21     (3) that a parent has been ordered to contribute to the 
437.22  support of the child or financially aid in the child's birth and 
437.23  has continuously failed to do so without good cause.  This 
437.24  clause shall not be construed to state a grounds for termination 
437.25  of parental rights of a noncustodial parent if that parent has 
437.26  not been ordered to or cannot financially contribute to the 
437.27  support of the child or aid in the child's birth; or 
437.28     (4) that a parent is palpably unfit to be a party to the 
437.29  parent and child relationship because of a consistent pattern of 
437.30  specific conduct before the child or of specific conditions 
437.31  directly relating to the parent and child relationship either of 
437.32  which are determined by the court to be of a duration or nature 
437.33  that renders the parent unable, for the reasonably foreseeable 
437.34  future, to care appropriately for the ongoing physical, mental, 
437.35  or emotional needs of the child.  It is presumed that a parent 
437.36  is palpably unfit to be a party to the parent and child 
438.1   relationship upon a showing that: 
438.2      (i) the child was adjudicated in need of protection or 
438.3   services due to circumstances described in section 260.015, 
438.4   subdivision 2a, clause (1), (2), (3), (5), or (8); and 
438.5      (ii) the parent's parental rights to one or more other 
438.6   children were involuntarily terminated under clause (1), (2), 
438.7   (4), or (7), or under clause (5) if the child was initially 
438.8   determined to be in need of protection or services due to 
438.9   circumstances described in section 260.015, subdivision 2a, 
438.10  clause (1), (2), (3), (5), or (8); or 
438.11     (5) that following upon a determination of neglect or 
438.12  dependency, or of a child's need for protection or services, 
438.13  reasonable efforts, under the direction of the court, have 
438.14  failed to correct the conditions leading to the determination.  
438.15  It is presumed that reasonable efforts under this clause have 
438.16  failed upon a showing that: 
438.17     (i) a child has resided out of the parental home under 
438.18  court order for a cumulative period of more than one year within 
438.19  a five-year period following an adjudication of dependency, 
438.20  neglect, need for protection or services under section 260.015, 
438.21  subdivision 2a, clause (1), (2), (3), (6), (8), or (9), or 
438.22  neglected and in foster care, and an order for disposition under 
438.23  section 260.191, including adoption of the case plan required by 
438.24  section 257.071; 
438.25     (ii) conditions leading to the determination will not be 
438.26  corrected within the reasonably foreseeable future.  It is 
438.27  presumed that conditions leading to a child's out-of-home 
438.28  placement will not be corrected in the reasonably foreseeable 
438.29  future upon a showing that the parent or parents have not 
438.30  substantially complied with the court's orders and a reasonable 
438.31  case plan, and the conditions which led to the out-of-home 
438.32  placement have not been corrected; and 
438.33     (iii) reasonable efforts have been made by the social 
438.34  service agency to rehabilitate the parent and reunite the family.
438.35     This clause does not prohibit the termination of parental 
438.36  rights prior to one year after a child has been placed out of 
439.1   the home.  
439.2      It is also presumed that reasonable efforts have failed 
439.3   under this clause upon a showing that: 
439.4      (i) the parent has been diagnosed as chemically dependent 
439.5   by a professional certified to make the diagnosis; 
439.6      (ii) the parent has been required by a case plan to 
439.7   participate in a chemical dependency treatment program; 
439.8      (iii) the treatment programs offered to the parent were 
439.9   culturally, linguistically, and clinically appropriate; 
439.10     (iv) the parent has either failed two or more times to 
439.11  successfully complete a treatment program or has refused at two 
439.12  or more separate meetings with a caseworker to participate in a 
439.13  treatment program; and 
439.14     (v) the parent continues to abuse chemicals.  
439.15  Provided, that this presumption applies only to parents required 
439.16  by a case plan to participate in a chemical dependency treatment 
439.17  program on or after July 1, 1990; or 
439.18     (6) that a child has experienced egregious harm in the 
439.19  parent's care which is of a nature, duration, or chronicity that 
439.20  indicates a lack of regard for the child's well-being, such that 
439.21  a reasonable person would believe it contrary to the best 
439.22  interest of the child or of any child to be in the parent's 
439.23  care; or 
439.24     (7) that in the case of a child born to a mother who was 
439.25  not married to the child's father when the child was conceived 
439.26  nor when the child was born the person is not entitled to notice 
439.27  of an adoption hearing under section 259.49 and the person has 
439.28  not registered with the putative fathers' adoption registry 
439.29  under section 259.52; or 
439.30     (8) that the child is neglected and in foster care; or 
439.31     (9) that the parent has been convicted of a crime listed in 
439.32  section 260.012, paragraph (b), clauses (1) to (3). 
439.33     In an action involving an American Indian child, sections 
439.34  257.35 to 257.3579 and the Indian Child Welfare Act, United 
439.35  States Code, title 25, sections 1901 to 1923, control to the 
439.36  extent that the provisions of this section are inconsistent with 
440.1   those laws. 
440.2      Subd. 1a.  [EVIDENCE OF ABANDONMENT.] For purposes of 
440.3   subdivision 1, paragraph (b), clause (1): 
440.4      (a) Abandonment is presumed when: 
440.5      (1) the parent has had no contact with the child on a 
440.6   regular basis and not demonstrated consistent interest in the 
440.7   child's well-being for six months; and 
440.8      (2) the social service agency has made reasonable efforts 
440.9   to facilitate contact, unless the parent establishes that an 
440.10  extreme financial or physical hardship or treatment for mental 
440.11  disability or chemical dependency or other good cause prevented 
440.12  the parent from making contact with the child.  This presumption 
440.13  does not apply to children whose custody has been determined 
440.14  under chapter 257 or 518.  The court is not prohibited from 
440.15  finding abandonment in the absence of this presumption; or 
440.16     (2) the child is an infant under two years of age and has 
440.17  been deserted by the parent under circumstances that show an 
440.18  intent not to return to care for the child. 
440.19     (b) The following are prima facie evidence of abandonment 
440.20  where adoption proceedings are pending and there has been a 
440.21  showing that the person was not entitled to notice of an 
440.22  adoption proceeding under section 259.49: 
440.23     (1) failure to register with the putative fathers' adoption 
440.24  registry under section 259.52; or 
440.25     (2) if the person registered with the putative fathers' 
440.26  adoption registry under section 259.52: 
440.27     (i) filing a denial of paternity within 30 days of receipt 
440.28  of notice under section 259.52, subdivision 8; 
440.29     (ii) failing to timely file an intent to claim parental 
440.30  rights with entry of appearance form within 30 days of receipt 
440.31  of notice under section 259.52, subdivision 10; or 
440.32     (iii) timely filing an intent to claim parental rights with 
440.33  entry of appearance form within 30 days of receipt of notice 
440.34  under section 259.52, subdivision 10, but failing to initiate a 
440.35  paternity action within 30 days of receiving the putative 
440.36  fathers' adoption registry notice where there has been no 
441.1   showing of good cause for the delay. 
441.2      Subd. 1b.  [REQUIRED TERMINATION OF PARENTAL RIGHTS.] (a) 
441.3   The county attorney shall file a termination of parental rights 
441.4   petition within 30 days of a child's placement in out-of-home 
441.5   care if the child has been subjected to egregious harm as 
441.6   defined in section 260.015, subdivision 29, is the sibling of 
441.7   another child of the parent who was subjected to egregious harm, 
441.8   or is an abandoned infant as defined in subdivision 1a, 
441.9   paragraph (a), clause (2).  The local social services agency 
441.10  shall concurrently identify, recruit, process, and approve an 
441.11  adoptive family for the child.  If a termination of parental 
441.12  rights petition has been filed by another party the local social 
441.13  services agency shall be joined as a party to the petition.  If 
441.14  criminal charges have been filed against a parent arising out of 
441.15  the conduct alleged to constitute egregious harm, the county 
441.16  attorney shall determine which matter should proceed to trial 
441.17  first, consistent with the best interests of the child and 
441.18  subject to the defendant's right to a speedy trial. 
441.19     (b) This requirement does not apply if the county attorney 
441.20  determines and files with the court its determination that a 
441.21  transfer of permanent legal and physical custody to a relative 
441.22  is in the best interests of the child or there is a compelling 
441.23  reason documented by the local social services agency that 
441.24  filing the petition would not be in the best interests of the 
441.25  child. 
441.26     Subd. 1c.  [CURRENT FOSTER CARE CHILDREN.] The county 
441.27  attorney shall file a termination of parental rights petition or 
441.28  other permanent placement proceeding under section 260.191, 
441.29  subdivision 3b, for all children determined to be in need of 
441.30  protection or services who are placed in out-of-home care for 
441.31  reasons other than care or treatment of the child's disability, 
441.32  and who are in out-of-home placement on the day following final 
441.33  enactment of this section, and have been in out-of-home care for 
441.34  15 of the most recent 22 months.  
441.35     Subd. 2.  [ADOPTIVE PARENT.] For purposes of subdivision 1, 
441.36  clause (a), an adoptive parent may not terminate parental rights 
442.1   to an adopted child for a reason that would not apply to a birth 
442.2   parent seeking termination of parental rights to a child under 
442.3   subdivision 1, clause (a). 
442.4      Subd. 3.  [WHEN PRIOR FINDING REQUIRED.] For purposes of 
442.5   subdivision 1, clause (b), no prior judicial finding of 
442.6   dependency, neglect, need for protection or services, or 
442.7   neglected and in foster care is required, except as provided in 
442.8   subdivision 1, clause (b), item (5). 
442.9      Subd. 4.  [BEST INTERESTS OF CHILD PARAMOUNT.] In any 
442.10  proceeding under this section, the best interests of the child 
442.11  must be the paramount consideration, provided that the 
442.12  conditions in subdivision 1, clause (a), or at least one 
442.13  condition in subdivision 1, clause (b), are found by the court.  
442.14  In proceedings involving an American Indian child, as defined in 
442.15  section 257.351, subdivision 6, the best interests of the child 
442.16  must be determined consistent with the Indian Child Welfare Act 
442.17  of 1978, United States Code, title 25, section 1901, et seq.  
442.18  Where the interests of parent and child conflict, the interests 
442.19  of the child are paramount.  
442.20     Subd. 5.  [FINDINGS REGARDING REASONABLE EFFORTS.] In any 
442.21  proceeding under this section, the court shall make specific 
442.22  findings: 
442.23     (1) regarding the nature and extent of efforts made by the 
442.24  social service agency to rehabilitate the parent and reunite the 
442.25  family; 
442.26     (2) that provision of services or further services for the 
442.27  purpose of rehabilitation and reunification is futile and 
442.28  therefore unreasonable under the circumstances; or 
442.29     (3) that reasonable efforts at reunification is are not 
442.30  required because the parent has been convicted of a crime listed 
442.31  in section 260.012, paragraph (b), clauses (1) to (3) as 
442.32  provided under section 260.012. 
442.33     Sec. 34.  Minnesota Statutes 1997 Supplement, section 
442.34  260.241, subdivision 3, is amended to read: 
442.35     Subd. 3.  [ORDER; RETENTION OF JURISDICTION.] (a) A 
442.36  certified copy of the findings and the order terminating 
443.1   parental rights, and a summary of the court's information 
443.2   concerning the child shall be furnished by the court to the 
443.3   commissioner or the agency to which guardianship is 
443.4   transferred.  The orders shall be on a document separate from 
443.5   the findings.  The court shall furnish the individual to whom 
443.6   guardianship is transferred a copy of the order terminating 
443.7   parental rights. 
443.8      (b) The court shall retain jurisdiction in a case where 
443.9   adoption is the intended permanent placement disposition.  The 
443.10  guardian ad litem and counsel for the child shall continue on 
443.11  the case until an adoption decree is entered.  A hearing must be 
443.12  held every 90 days following termination of parental rights for 
443.13  the court to review progress toward an adoptive placement and 
443.14  the specific recruitment efforts the agency has taken to find an 
443.15  adoptive family or other placement living arrangement for the 
443.16  child and to finalize the adoption or other permanency plan. 
443.17     (c) The court shall retain jurisdiction in a case where 
443.18  long-term foster care is the permanent disposition.  The 
443.19  guardian ad litem and counsel for the child must be dismissed 
443.20  from the case on the effective date of the permanent placement 
443.21  order.  However, the foster parent and the child, if of 
443.22  sufficient age, must be informed how they may contact a guardian 
443.23  ad litem if the matter is subsequently returned to court. 
443.24     Sec. 35.  Minnesota Statutes 1996, section 626.556, is 
443.25  amended by adding a subdivision to read: 
443.26     Subd. 11d.  [DISCLOSURE IN CHILD FATALITY OR NEAR FATALITY 
443.27  CASES.] (a) The definitions in this paragraph apply to this 
443.28  section. 
443.29     (1) "Child fatality" means the death of a child from 
443.30  suspected abuse, neglect, or maltreatment. 
443.31     (2) "Near fatality" means a case in which a physician 
443.32  determines that a child is in serious or critical condition as 
443.33  the result of sickness or injury caused by suspected abuse, 
443.34  neglect, or maltreatment. 
443.35     (3) "Findings and information" means a written summary 
443.36  described in paragraph (c) of actions taken or services rendered 
444.1   by a local social services agency following receipt of a report. 
444.2      (b) Notwithstanding any other provision of law and subject 
444.3   to this subdivision, a public agency shall disclose to the 
444.4   public, upon request, the findings and information related to a 
444.5   child fatality or near fatality if: 
444.6      (1) a person is criminally charged with having caused the 
444.7   child fatality or near fatality; or 
444.8      (2) a county attorney certifies that a person would have 
444.9   been charged with having caused the child fatality or near 
444.10  fatality but for that person's death. 
444.11     (c) Findings and information disclosed under this 
444.12  subdivision consist of a written summary that includes any of 
444.13  the following information the agency is able to provide: 
444.14     (1) the dates, outcomes, and results of any actions taken 
444.15  or services rendered; 
444.16     (2) the results of any review of the state child mortality 
444.17  review panel, a local child mortality review panel, a local 
444.18  community child protection team, or any public agency; and 
444.19     (3) confirmation of the receipt of all reports, accepted or 
444.20  not accepted, by the local welfare agency for assessment of 
444.21  suspected child abuse, neglect, or maltreatment, including 
444.22  confirmation that investigations were conducted, the results of 
444.23  the investigations, a description of the conduct of the most 
444.24  recent investigation and the services rendered, and a statement 
444.25  of the basis for the agency's determination. 
444.26     (d) Nothing in this subdivision authorizes access to the 
444.27  private data in the custody of a local social services agency, 
444.28  or the disclosure to the public of the records or content of any 
444.29  psychiatric, psychological, or therapeutic evaluations, or the 
444.30  disclosure of information that would reveal the identities of 
444.31  persons who provided information related to suspected abuse, 
444.32  neglect, or maltreatment of the child. 
444.33     (e) A person whose request is denied may apply to the 
444.34  appropriate court for an order compelling disclosure of all or 
444.35  part of the findings and information of the public agency.  The 
444.36  application must set forth, with reasonable particularity, 
445.1   factors supporting the application.  The court has jurisdiction 
445.2   to issue these orders.  Actions under this section must be set 
445.3   down for immediate hearing, and subsequent proceedings in those 
445.4   actions must be given priority by the appellate courts.  
445.5      (f) A public agency or its employees acting in good faith 
445.6   in disclosing or declining to disclose information under this 
445.7   section are immune from criminal or civil liability that might 
445.8   otherwise be incurred or imposed for that action. 
445.9      Sec. 36.  [EFFECTIVE DATE.] 
445.10     Sections 1 to 18, and 20 to 35 are effective the day 
445.11  following final enactment.  Section 19 is effective retroactive 
445.12  to July 1, 1997, and applies to communication or contact 
445.13  agreements entered into on or after that date. 
445.14                             ARTICLE 10
445.15                       HEALTH DATA REPORTING
445.16     Section 1.  Minnesota Statutes 1996, section 145.411, is 
445.17  amended by adding a subdivision to read: 
445.18     Subd. 6.  [COMMISSIONER.] "Commissioner" means the 
445.19  commissioner of health. 
445.20     Sec. 2.  [145.4131] [RECORDING AND REPORTING ABORTION 
445.21  DATA.] 
445.22     Subdivision 1.  [FORMS.] (a) Within 90 days of the 
445.23  effective date of this section, the commissioner shall prepare a 
445.24  reporting form for use by physicians or facilities performing 
445.25  abortions.  A copy of this section shall be attached to the 
445.26  form.  A physician or facility performing an abortion shall 
445.27  obtain a form from the commissioner. 
445.28     (b) The form shall require the following information: 
445.29     (1) the number of abortions performed by the physician in 
445.30  the previous calendar year, reported by month; 
445.31     (2) the method used for each abortion; 
445.32     (3) the approximate gestational age expressed in one of the 
445.33  following increments:  
445.34     (i) less than nine weeks; 
445.35     (ii) nine to ten weeks; 
445.36     (iii) 11 to 12 weeks; 
446.1      (iv) 13 to 15 weeks; 
446.2      (v) 16 to 20 weeks; 
446.3      (vi) 21 to 24 weeks; 
446.4      (vii) 25 to 30 weeks; 
446.5      (viii) 31 to 36 weeks; or 
446.6      (ix) 37 weeks to term; 
446.7      (4) the age of the woman at the time the abortion was 
446.8   performed; 
446.9      (5) the specific reason for the abortion, including, but 
446.10  not limited to, the following: 
446.11     (i) the pregnancy was a result of rape; 
446.12     (ii) the pregnancy was a result of incest; 
446.13     (iii) economic reasons; 
446.14     (iv) the woman does not want children at this time; 
446.15     (v) the woman's emotional health is at stake; 
446.16     (vi) the woman's physical health is at stake; 
446.17     (vii) the woman will suffer substantial and irreversible 
446.18  impairment of a major bodily function if the pregnancy 
446.19  continues; 
446.20     (viii) the pregnancy resulted in fetal anomalies; or 
446.21     (ix) unknown or the woman refused to answer; 
446.22     (6) the number of prior induced abortions; 
446.23     (7) the number of prior spontaneous abortions; 
446.24     (8) whether the abortion was paid for by: 
446.25     (i) private coverage; 
446.26     (ii) public assistance health coverage; or 
446.27     (iii) self-pay; 
446.28     (9) whether coverage was under: 
446.29     (i) a fee-for-service plan; 
446.30     (ii) a capitated private plan; or 
446.31     (iii) other; 
446.32     (10) complications, if any, for each abortion and for the 
446.33  aftermath of each abortion.  Space for a description of any 
446.34  complications shall be available on the form; and 
446.35     (11)  the medical specialty of the physician performing the 
446.36  abortion. 
447.1      Subd. 2.  [SUBMISSION.] A physician performing an abortion 
447.2   or a facility at which an abortion is performed shall complete 
447.3   and submit the form to the commissioner no later than April 1 
447.4   for abortions performed in the previous calendar year.  The 
447.5   annual report to the commissioner shall include the methods used 
447.6   to dispose of fetal tissue and remains. 
447.7      Subd. 3.  [ADDITIONAL REPORTING.] Nothing in this section 
447.8   shall be construed to preclude the voluntary or required 
447.9   submission of other reports or forms regarding abortions.  
447.10     Sec. 3.  [145.4132] [RECORDING AND REPORTING ABORTION 
447.11  COMPLICATION DATA.] 
447.12     Subdivision 1.  [FORMS.] (a) Within 90 days of the 
447.13  effective date of this section, the commissioner shall prepare 
447.14  an abortion complication reporting form for all physicians 
447.15  licensed and practicing in the state.  A copy of this section 
447.16  shall be attached to the form. 
447.17     (b) The board of medical practice shall ensure that the 
447.18  abortion complication reporting form is distributed: 
447.19     (1) to all physicians licensed to practice in the state, 
447.20  within 120 days after the effective date of this section and by 
447.21  December 1 of each subsequent year; and 
447.22     (2) to a physician who is newly licensed to practice in the 
447.23  state, at the same time as official notification to the 
447.24  physician that the physician is so licensed. 
447.25     Subd. 2.  [REQUIRED REPORTING.] A physician licensed and 
447.26  practicing in the state who knowingly encounters an illness or 
447.27  injury that, in the physician's medical judgment, is related to 
447.28  an induced abortion or the facility where the illness or injury 
447.29  is encountered shall complete and submit an abortion 
447.30  complication reporting form to the commissioner. 
447.31     Subd. 3.  [SUBMISSION.] A physician or facility required to 
447.32  submit an abortion complication reporting form to the 
447.33  commissioner shall do so as soon as practicable after the 
447.34  encounter with the abortion related illness or injury. 
447.35     Subd. 4.  [ADDITIONAL REPORTING.] Nothing in this section 
447.36  shall be construed to preclude the voluntary or required 
448.1   submission of other reports or forms regarding abortion 
448.2   complications. 
448.3      Sec. 4.  [145.4133] [REPORTING OUT-OF-STATE ABORTIONS.] 
448.4      The commissioner of human services shall report to the 
448.5   commissioner by April 1 each year the following information 
448.6   regarding abortions paid for with state funds and performed out 
448.7   of state in the previous calendar year:  
448.8      (1) the total number of abortions performed out of state 
448.9   and partially or fully paid for with state funds through the 
448.10  medical assistance, general assistance medical care, or 
448.11  MinnesotaCare program, or any other program; 
448.12     (2) the total amount of state funds used to pay for the 
448.13  abortions and expenses incidental to the abortions; and 
448.14     (3) the gestational age at the time of abortion. 
448.15     Sec. 5.  [145.4134] [COMMISSIONER'S PUBLIC REPORT.] 
448.16     (a) By July 1 of each year, except for 1998 and 1999 
448.17  information, the commissioner shall issue a public report 
448.18  providing statistics for the previous calendar year compiled 
448.19  from the data submitted under sections 145.4131 to 145.4133.  
448.20  For 1998 and 1999 information, the report shall be issued 
448.21  October 1, 2000.  Each report shall provide the statistics for 
448.22  all previous calendar years, adjusted to reflect any additional 
448.23  information from late or corrected reports.  The commissioner 
448.24  shall ensure that none of the information included in the public 
448.25  reports can reasonably lead to identification of an individual 
448.26  having performed or having had an abortion.  All data included 
448.27  on the forms under sections 145.4131 to 145.4133 must be 
448.28  included in the public report except that the commissioner shall 
448.29  maintain as confidential, data which alone or in combination may 
448.30  constitute information from which an individual having performed 
448.31  or having had an abortion may be identified using epidemiologic 
448.32  principles.  The commissioner shall submit the report to the 
448.33  senate health and family security committee and the house health 
448.34  and human services committee.  
448.35     (b) The commissioner may, by rules adopted under chapter 
448.36  14, alter the submission dates established under sections 
449.1   145.4131 to 145.4133 for administrative convenience, fiscal 
449.2   savings, or other valid reason, provided that physicians or 
449.3   facilities and the commissioner of human services submit the 
449.4   required information once each year and the commissioner issues 
449.5   a report once each year.  
449.6      Sec. 6.  [145.4135] [ENFORCEMENT; PENALTIES.] 
449.7      (a) If the commissioner finds that a physician or facility 
449.8   has failed to submit the required form under section 145.4131 
449.9   within 60 days following the due date, the commissioner shall 
449.10  notify the physician or facility that the form is late.  A 
449.11  physician or facility who fails to submit the required form 
449.12  under section 145.4131 within 30 days following notification 
449.13  from the commissioner that a report is late is subject to a late 
449.14  fee of $500 for each 30-day period, or portion thereof, that the 
449.15  form is overdue.  If a physician or facility required to report 
449.16  under this section does not submit a report, or submits only an 
449.17  incomplete report, more than one year following the due date, 
449.18  the commissioner may take action to fine the physician or 
449.19  facility or may bring an action to require that the physician or 
449.20  facility be directed by a court of competent jurisdiction to 
449.21  submit a complete report within a period stated by court order 
449.22  or be subject to sanctions for civil contempt.  Notwithstanding 
449.23  section 13.39 to the contrary, action taken by the commissioner 
449.24  to enforce the provision of this section shall be treated as 
449.25  private if the data related to this action, alone or in 
449.26  combination, may constitute information from which an individual 
449.27  having performed or having had an abortion may be identified 
449.28  using epidemiologic principles.  
449.29     (b) If the commissioner fails to issue the public report 
449.30  required under section 145.4134 or fails in any way to enforce 
449.31  this section, a group of 100 or more citizens of the state may 
449.32  seek an injunction in a court of competent jurisdiction against 
449.33  the commissioner requiring that a complete report be issued 
449.34  within a period stated by court order or requiring that 
449.35  enforcement action be taken. 
449.36     (c) A physician or facility reporting in good faith and 
450.1   exercising due care shall have immunity from civil, criminal, or 
450.2   administrative liability that might otherwise result from 
450.3   reporting.  A physician who knowingly or recklessly submits a 
450.4   false report under this section is guilty of a misdemeanor.  
450.5      (d) The commissioner may take reasonable steps to ensure 
450.6   compliance with sections 145.4131 to 145.4133 and to verify data 
450.7   provided, including but not limited to, inspection of places 
450.8   where abortions are performed in accordance with chapter 14. 
450.9      (e) The commissioner shall develop recommendations on 
450.10  appropriate penalties and methods of enforcement for physicians 
450.11  or facilities who fail to submit the report required under 
450.12  section 145.4132, submit an incomplete report, or submit a late 
450.13  report.  The commissioner shall also assess the effectiveness of 
450.14  the enforcement methods and penalties provided in paragraph (a) 
450.15  and shall recommend appropriate changes, if any.  These 
450.16  recommendations shall be reported to the chairs of the senate 
450.17  health and family security committee and the house health and 
450.18  human services committee by November 15, 1998. 
450.19     Sec. 7.  [145.4136] [SEVERABILITY.] 
450.20     If any one or more provision, section, subdivision, 
450.21  sentence, clause, phrase, or word in sections 145.4131 to 
450.22  145.4135, or the application thereof to any person or 
450.23  circumstance is found to be unconstitutional, the same is hereby 
450.24  declared to be severable and the balance of sections 145.4131 to 
450.25  145.4135 shall remain effective notwithstanding such 
450.26  unconstitutionality.  The legislature hereby declares that it 
450.27  would have passed sections 145.4131 to 145.4135, and each 
450.28  provision, section, subdivision, sentence, clause, phrase, or 
450.29  word thereof, irrespective of the fact that any one or more 
450.30  provision, section, subdivision, sentence, clause, phrase, or 
450.31  word be declared unconstitutional.