1.1                          A bill for an act 
  1.2             relating to health and human services; changing 
  1.3             requirements for immunization statements; modifying 
  1.4             health care provisions related to rate setting for day 
  1.5             training and habilitation and nursing facilities; 
  1.6             requiring informed consent to an abortion and 
  1.7             providing for civil remedies; establishing a 
  1.8             prescription drug program; modifying MinnesotaCare; 
  1.9             requiring information on prescription drug patient 
  1.10            assistance programs; requiring legislative proposals 
  1.11            on respite care for family adult foster care; 
  1.12            establishing the office of unlicensed complementary 
  1.13            and alternative health practice and providing civil 
  1.14            penalties; establishing a system to conduct 
  1.15            immigration status verifications; providing for county 
  1.16            reimbursement for collection of assistance recovery; 
  1.17            providing for child support distribution; making 
  1.18            changes to the Minnesota family investment plan; 
  1.19            establishing a nontraditional career assistance and 
  1.20            training program; establishing at-risk youth 
  1.21            out-of-wedlock pregnancy prevention program; 
  1.22            establishing Dakota county MFIP diversionary 
  1.23            assistance pilot project; modifying maltreatment of 
  1.24            minors reporting requirements; establishing 
  1.25            transitional housing for homeless or disabled 
  1.26            veterans; establishing TANF maintenance of effort 
  1.27            expenditures and legislative advisory commission 
  1.28            review; providing for the sunset of the tobacco use 
  1.29            prevention and local public health endowment fund; 
  1.30            making technical corrections; appropriating money; 
  1.31            amending Minnesota Statutes 1998, sections 121A.15, 
  1.32            subdivisions 4 and 10; 125A.74, subdivisions 1 and 2; 
  1.33            144.551, subdivision 1; 144A.071, by adding a 
  1.34            subdivision; 254B.03, subdivision 1; 256.01, by adding 
  1.35            a subdivision; 256.011, subdivision 3; 256.741, by 
  1.36            adding a subdivision; 256.955, subdivisions 1 and 2; 
  1.37            256.995, subdivision 1; 256B.431, by adding 
  1.38            subdivisions; 256B.69, subdivision 5d; 256J.08, by 
  1.39            adding a subdivision; 256J.15, by adding a 
  1.40            subdivision; 256J.32, by adding a subdivision; 
  1.41            256J.40; 256J.45, subdivision 3; 256J.46, by adding a 
  1.42            subdivision; 256J.47, subdivision 1; 256J.49, 
  1.43            subdivision 13; 256J.50, subdivisions 5 and 7; 
  1.44            256J.52, by adding a subdivision; 256L.05, subdivision 
  1.45            5; and 626.556, by adding a subdivision; Minnesota 
  1.46            Statutes 1999 Supplement, sections 13.99, by adding a 
  2.1             subdivision; 62J.535, subdivision 2; 119B.011, 
  2.2             subdivision 15; 119B.02, subdivision 1; 144.395, by 
  2.3             adding a subdivision; 144.396, subdivisions 11 and 12; 
  2.4             144A.04, subdivision 5; 147.09; 214.01, subdivision 2; 
  2.5             256.01, subdivision 2; 256.019; 256.955, subdivisions 
  2.6             4, 8, and 9; 256B.0916, subdivision 1; 256D.03, 
  2.7             subdivision 4; 256J.02, subdivision 2; 256J.08, 
  2.8             subdivision 86; 256J.21, subdivision 2; 256J.26, 
  2.9             subdivision 1; 256J.33, subdivision 4; 256J.34, 
  2.10            subdivisions 1 and 4; 256J.46, subdivisions 1, 2, and 
  2.11            2a; 256J.52, subdivisions 3 and 5; 256J.56; 256L.07, 
  2.12            subdivision 1; and 626.556, subdivision 2; Laws 1997, 
  2.13            chapter 225, article 4, section 4, as amended; Laws 
  2.14            1999, chapter 245, article 1, section 2, subdivisions 
  2.15            3, 5, and 10; article 4, section 121; proposing coding 
  2.16            for new law in Minnesota Statutes, chapters 3; 145; 
  2.17            198; 252; 256J; and 256K; proposing coding for new law 
  2.18            as Minnesota Statutes, chapter 146A; repealing 
  2.19            Minnesota Statutes 1998, section 256J.46, subdivision 
  2.20            1a; Minnesota Statutes 1999 Supplement, section 
  2.21            144.396, subdivision 13; Laws 1997, chapter 203, 
  2.22            article 7, section 27; and Laws 1999, chapter 245, 
  2.23            article 5, section 24. 
  2.24  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.25                             ARTICLE 1 
  2.26                           APPROPRIATIONS 
  2.27  Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
  2.28     The sums shown in the columns marked "APPROPRIATIONS" are 
  2.29  appropriated from the general fund, or any other fund named, to 
  2.30  the agencies and for the purposes specified in this act, to be 
  2.31  available for the fiscal years indicated for each purpose.  The 
  2.32  figures "2000" and "2001"  mean that the appropriation or 
  2.33  appropriations listed under them are available for the fiscal 
  2.34  year ending June 30, 2000, or June 30, 2001, respectively, and 
  2.35  if an earlier appropriation was made for that purpose for that 
  2.36  year, the appropriation in this act is added to it.  Where a 
  2.37  dollar amount appears in parenthesis, it means a reduction of an 
  2.38  earlier appropriation for that purpose for that year. 
  2.39                          SUMMARY BY FUND 
  2.40  APPROPRIATIONS                                      BIENNIAL
  2.41                            2000          2001           TOTAL
  2.42  General            $  (53,756,000)$   (7,163,000)$  (60,919,000)
  2.43  State Government
  2.44  Special Revenue           150,000          -0-          150,000
  2.45  Health Care Access 
  2.46  Fund                    1,266,000      3,383,000      4,649,000 
  2.47  TOTAL              $  (52,340,000)$   (3,780,000)$  (56,120,000)
  2.48                                             APPROPRIATIONS 
  2.49                                         Available for the Year 
  3.1                                              Ending June 30 
  3.2                                             2000         2001 
  3.3   Sec. 2.  COMMISSIONER OF 
  3.4   HUMAN SERVICES 
  3.5   Subdivision 1.  Total 
  3.6   Appropriation                     $  (52,490,000)$   (4,487,000)
  3.7                 Summary by Fund
  3.8   General             (53,756,000)   (7,870,000)
  3.9   Health Care Access    1,266,000     3,383,000 
  3.10  This appropriation is taken from the 
  3.11  appropriation in Laws 1999, chapter 
  3.12  245, article 1, section 2. 
  3.13  The amounts that are added to or 
  3.14  reduced from the appropriation for each 
  3.15  program are specified in the following 
  3.16  subdivisions. 
  3.17  Subd. 2.  Children's Grants
  3.18        589,000       2,212,000 
  3.19  [ADOPTION ASSISTANCE/RELATIVE CUSTODY 
  3.20  ASSISTANCE.] Of this appropriation, 
  3.21  $133,000 in fiscal year 2000 and 
  3.22  $1,300,000 in fiscal year 2001 is for 
  3.23  the adoption assistance program under 
  3.24  Minnesota Statutes, section 259.67, and 
  3.25  $456,000 in fiscal year 2000 and 
  3.26  $912,000 in fiscal year 2001 is for the 
  3.27  relative custody assistance program 
  3.28  under Minnesota Statutes, section 
  3.29  257.85.  This is a one-time 
  3.30  appropriation that shall not be added 
  3.31  to the base level funding for these 
  3.32  programs. 
  3.33  Subd. 3.  Basic Health Care Grants
  3.34      14,984,000     51,058,000 
  3.35                Summary by Fund
  3.36  General              13,718,000    47,657,000 
  3.37  Health Care Access    1,266,000     3,383,000 
  3.38  The amounts that may be spent from this 
  3.39  appropriation for each purpose are as 
  3.40  follows: 
  3.41  (a) Minnesota Care Grants
  3.42  Health Care Access Fund
  3.43       1,266,000      3,383,000 
  3.44  (b) MA Basic Health Care Grants-
  3.45  Families and Children
  3.46  General  22,751,000    22,813,000 
  3.47  (c) MA Basic Health Care Grants- 
  3.48  Elderly and  Disabled
  3.49  General  (3,730,000)   13,845,000 
  4.1   (d) General Assistance Medical Care
  4.2   General  (5,303,000)    8,405,000 
  4.3   (e) Health Care Nonentitlement Grants
  4.4            -0-        2,594,000 
  4.5   Subd. 4.  State-Operated Services
  4.6      (9,543,000)          -0-    
  4.7   [STATE-OPERATED SERVICES BASE 
  4.8   REDUCTION.] The general fund base level 
  4.9   appropriation for state operated 
  4.10  services programs and activities shall 
  4.11  be reduced by $9,543,000 for fiscal 
  4.12  year 2000.  
  4.13  The amounts that may be spent from this 
  4.14  appropriation for each purpose are as 
  4.15  follows: 
  4.16  (a) RTC Facilities
  4.17     (9,543,000)          -0-  
  4.18  Subd. 5.  Continuing Care and 
  4.19  Community Support Grants
  4.20     (35,029,000)   (10,847,000)
  4.21  The amounts that may be spent from this 
  4.22  appropriation for each purpose are as 
  4.23  follows: 
  4.24  (a) Community Services Block Grants
  4.25           -0-       (4,950,000)
  4.26  (b) Medical Assistance Long-Term 
  4.27  Care Waivers and Home Care
  4.28     (12,385,000)    (3,372,000) 
  4.29  (c) Medical Assistance Long-Term
  4.30  Care Facilities
  4.31     (20,790,000)    (4,065,000)                 
  4.32  [ADDITIONAL PROVIDER RATE INCREASES.] 
  4.33  (a) The commissioner shall increase 
  4.34  reimbursement rates in effect on June 
  4.35  30, 2000, by five percent for nursing 
  4.36  services and home health services under 
  4.37  Minnesota Statutes, section 256B.0625, 
  4.38  subdivision 6a; personal care services 
  4.39  and nursing supervision of personal 
  4.40  care services under Minnesota Statutes, 
  4.41  section 256B.0625, subdivision 19a; and 
  4.42  private duty nursing services under 
  4.43  Minnesota Statutes, section 256B.0625, 
  4.44  subdivision 7.  This increase is in 
  4.45  addition to the increase provided for 
  4.46  the second year of the biennium in Laws 
  4.47  1999, chapter 245, article 1, section 
  4.48  2, subdivision 8, paragraph (g), and 
  4.49  shall be effective for services 
  4.50  rendered on or after July 1, 2000.  
  4.51  (b) Providers that receive a rate 
  5.1   increase under this section shall use 
  5.2   at least 80 percent of the additional 
  5.3   revenue to increase the compensation 
  5.4   paid to employees other than the 
  5.5   administrator and central office staff. 
  5.6   (c) A copy of the provider's plan for 
  5.7   complying with paragraph (b) must be 
  5.8   made available to all employees.  This 
  5.9   must be done by giving each employee a 
  5.10  copy or by posting it in an area of the 
  5.11  provider's operation to which all 
  5.12  employees have access.  If an employee 
  5.13  does not receive the salary adjustment 
  5.14  described in the plan and is unable to 
  5.15  resolve the problem with the provider, 
  5.16  the employee may contact the employee's 
  5.17  union representative.  If the employee 
  5.18  is not covered by a collective 
  5.19  bargaining agreement, the employee may 
  5.20  contact the commissioner at a phone 
  5.21  number provided by the commissioner and 
  5.22  included in the provider's plan. 
  5.23  (d) Section 6, sunset of uncodified 
  5.24  language, does not apply to this 
  5.25  provision. 
  5.26  (d) Group Residential Housing
  5.27      (1,854,000)      (499,000)                
  5.28  (e) Chemical Dependency
  5.29  Entitlement Grants
  5.30         -0-          2,039,000                 
  5.31  [CHEMICAL DEPENDENCY RESERVE ACCOUNT.] 
  5.32  For fiscal year 2001, $1,500,000 is 
  5.33  canceled from the chemical dependency 
  5.34  reserve account within the consolidated 
  5.35  chemical dependency treatment fund to 
  5.36  the general fund. 
  5.37  Subd. 6.  Continuing Care and
  5.38  Community Support Management
  5.39         -0-             45,000                
  5.40  [DAY TRAINING AND HABILITATION TASK 
  5.41  FORCE.] Of this appropriation, $45,000 
  5.42  in fiscal year 2001 is for the 
  5.43  commissioner to provide technical 
  5.44  assistance to the day training and 
  5.45  habilitation task force established 
  5.46  under Laws 1999, chapter 152. 
  5.47  [DAY SERVICES PROGRAMS.] The 
  5.48  commissioners of human services, 
  5.49  revenue, and finance, in consultation 
  5.50  with representatives of interested 
  5.51  groups, including family members, 
  5.52  advocacy organizations, counties, 
  5.53  service providers, and others, shall 
  5.54  develop specific legislative 
  5.55  recommendations on the transfer from 
  5.56  county funds to the state general fund 
  5.57  for the responsibility for funding day 
  5.58  training and habilitation services 
  5.59  under Minnesota Statutes, section 
  5.60  252.41, including a proposal for a home 
  6.1   and community-based waiver for day 
  6.2   services programs.  The recommendation 
  6.3   shall include estimated cost of the 
  6.4   nonfederal share of medical assistance 
  6.5   day services.  The recommendations, 
  6.6   including cost estimates, shall be 
  6.7   provided to the chairs of the house 
  6.8   health and human services policy and 
  6.9   finance committees and the senate 
  6.10  health and family security committee 
  6.11  and budget division by January 1, 2001. 
  6.12  Subd. 7.  Economic Support Grants
  6.13     (23,491,000)   (47,064,000)                
  6.14  The amounts that may be spent from this 
  6.15  appropriation for each purpose are as 
  6.16  follows: 
  6.17  [FEDERAL TANF FUNDS.] (1)  In addition 
  6.18  to the Federal Temporary Assistance for 
  6.19  Needy Families (TANF) block grant funds 
  6.20  appropriated to the commissioner of 
  6.21  human services in Laws 1999, chapter 
  6.22  245, article 1, section 2, subdivision 
  6.23  10, federal TANF funds awarded in 
  6.24  federal fiscal years 1999 to 2002 are 
  6.25  appropriated to the commissioner in 
  6.26  amounts up to $34,000,000 in fiscal 
  6.27  year 2000 and $56,587,000 in fiscal 
  6.28  year 2001.  In addition to these funds, 
  6.29  the commissioner may draw or transfer 
  6.30  any other appropriations of federal 
  6.31  TANF funds or transfers of federal TANF 
  6.32  funds that are enacted into state law. 
  6.33  (2) Of the amounts in clause (1), 
  6.34  $4,950,000 is transferred in fiscal 
  6.35  year 2001 and $200,000 is transferred 
  6.36  in fiscal year 2002 to the state's 
  6.37  federal Title XX block grant.  
  6.38  Notwithstanding the provisions of 
  6.39  Minnesota Statutes, section 256E.07, 
  6.40  the commissioner shall allocate 
  6.41  $4,950,000 in fiscal year 2001 and 
  6.42  $200,000 in fiscal year 2002 of the 
  6.43  state's Title XX block grant funds 
  6.44  based on the community social services 
  6.45  formula in Minnesota Statutes, section 
  6.46  256E.06.  The commissioner shall ensure 
  6.47  that money allocated to counties under 
  6.48  this provision is used according to the 
  6.49  requirements of United States Code, 
  6.50  title 42, section 604(d)(3)(B).  
  6.51  Notwithstanding section 6, this clause 
  6.52  expires June 30, 2002. 
  6.53  (3) Of the amounts in clause (1), 
  6.54  $11,200,000 in fiscal year 2001 is for 
  6.55  the local intervention grants program 
  6.56  under Minnesota Statutes, section 
  6.57  256J.625 and related grant programs and 
  6.58  shall be expended as follows: 
  6.59  (a) $500,000 in fiscal year 2001 is for 
  6.60  a grant to the Southeast Asian MFIP 
  6.61  services collaborative to replicate in 
  6.62  a second location an existing model of 
  6.63  an intensive intervention transitional 
  6.64  employment training project which 
  7.1   serves TANF-eligible recipients and 
  7.2   which moves refugee and immigrant 
  7.3   welfare recipients unto unsubsidized 
  7.4   employment and leads to economic 
  7.5   self-sufficiency.  This is a one-time 
  7.6   appropriation. 
  7.7   (b) $500,000 in fiscal year 2001 is for 
  7.8   nontraditional career assistance and 
  7.9   training programs under Minnesota 
  7.10  Statutes, section 256K.30, subdivision 
  7.11  4.  This is a one-time appropriation. 
  7.12  (c) $10,200,000 is for local 
  7.13  intervention grants for 
  7.14  self-sufficiency program under 
  7.15  Minnesota Statutes, section 256J.625.  
  7.16  For fiscal years 2002 and 2003 the 
  7.17  commissioner of finance shall ensure 
  7.18  that the base level funding for the 
  7.19  local intervention grants program is 
  7.20  $22,625,000 each year. 
  7.21  (4) Of the amounts in clause (1), 
  7.22  $320,000 in fiscal year 2001 is for 
  7.23  training job counselors about the MFIP 
  7.24  program.  For fiscal years 2002 and 
  7.25  2003 the commissioner of finance shall 
  7.26  ensure that the base level funding for 
  7.27  employment services includes $320,000 
  7.28  each year for this activity.  The 
  7.29  appropriations in this clause shall not 
  7.30  become part of the base for the 
  7.31  2004-2005 biennium. 
  7.32  (5) Of the amounts in clause (1), 
  7.33  $242,000 in fiscal year 2001 is for the 
  7.34  costs to county agencies from the 
  7.35  requirement for automatic fair hearings 
  7.36  under Minnesota Statutes, section 
  7.37  256J.40, subdivision 2. For fiscal 
  7.38  years 2002 and 2003 the commissioner of 
  7.39  finance shall ensure that the base 
  7.40  level funding for this activity is 
  7.41  $124,000 each year. 
  7.42  (6) Of the amounts in clause (1), 
  7.43  $1,000,000 in fiscal year 2001 is for 
  7.44  out-of-wedlock pregnancy prevention 
  7.45  funds to serve children in 
  7.46  TANF-eligible families under Minnesota 
  7.47  Statutes, section 256K.35. For fiscal 
  7.48  years 2002 and 2003 the commissioner of 
  7.49  finance shall ensure that the base 
  7.50  level funding for this program is 
  7.51  $1,000,000 each year.  The 
  7.52  appropriations in this clause shall not 
  7.53  become part of the base for the 
  7.54  2004-2005 biennium. 
  7.55  (7) Of the amounts in clause (1), 
  7.56  $1,000,000 in fiscal year 2001 is to 
  7.57  provide services to TANF-eligible 
  7.58  families who are participating in the 
  7.59  supportive housing and managed care 
  7.60  pilot project under Minnesota Statutes, 
  7.61  section 256K.25.  For fiscal years 2002 
  7.62  and 2003 the commissioner of finance 
  7.63  shall ensure that the base level 
  7.64  funding for this project is $1,000,000 
  7.65  each year.  The appropriations in this 
  8.1   clause shall not become part of the 
  8.2   base for this project for the 2004-2005 
  8.3   biennium. 
  8.4   [REDUCTION OF CCDF TRANSFER AMOUNT.] 
  8.5   Notwithstanding any contrary provision 
  8.6   in Laws 1999, chapter 205, article 1, 
  8.7   section 72, the amount of federal TANF 
  8.8   block grant funds that is transferred 
  8.9   in fiscal year 2001 to the state's 
  8.10  federal child care and development 
  8.11  block grant and appropriated to the 
  8.12  commissioner of children, families and 
  8.13  learning for the purposes of Minnesota 
  8.14  Statutes, section 119B.05, under the 
  8.15  provision in Laws 1999, chapter 245, 
  8.16  article 1, section 2, subdivision 10 
  8.17  relating to federal TANF funds, is 
  8.18  reduced by $121,000 for fiscal year 
  8.19  2001. 
  8.20  [TANF MOE EXPENDITURES CLAIMED.] (a) 
  8.21  For fiscal years 2000 and 2001 only, 
  8.22  the commissioner shall claim allowable 
  8.23  state expenditures from the working 
  8.24  family credit under Minnesota Statutes, 
  8.25  section 290.0671, as TANF maintenance 
  8.26  of effort in amounts up to $71,000,000 
  8.27  for the biennium. 
  8.28  (b) For fiscal year 2001, the 
  8.29  commissioner shall claim allowable 
  8.30  state expenditures for family 
  8.31  preservation services under Minnesota 
  8.32  Statutes, chapter 256F, as TANF 
  8.33  maintenance of effort in amounts equal 
  8.34  to the state share of the amounts 
  8.35  passed through to custodial parents 
  8.36  under Minnesota Statutes, section 
  8.37  256.741, subdivision 15. 
  8.38  (c) For fiscal years 2002 and 2003, the 
  8.39  commissioner shall claim allowable 
  8.40  state expenditures for family 
  8.41  preservation services under Minnesota 
  8.42  Statutes, chapter 256F, as TANF 
  8.43  maintenance of effort in amounts equal 
  8.44  to the state share of the amounts 
  8.45  distributed to individuals under 
  8.46  Minnesota Statutes, section 256.741, 
  8.47  subdivision 15.  This paragraph expires 
  8.48  June 30, 2003. 
  8.49  (a) Assistance to Families Grants
  8.50     (24,372,000)   (43,200,000)                
  8.51  (b) Work Grants
  8.52          -0-          (250,000)
  8.53  (c) General Assistance
  8.54          557,000    (3,937,000)
  8.55  (d) Minnesota Supplemental Aid
  8.56          324,000       323,000 
  8.57  Subd. 8.  Economic Support  
  8.58  Management
  9.1   General Fund            -0-           127,000
  9.2   Sec. 3.  COMMISSIONER OF HEALTH 
  9.3   Subdivision 1.  Total 
  9.4   Appropriation                            -0-            707,000
  9.5                 Summary by Fund
  9.6   General                 -0-           707,000
  9.7   This appropriation is added to the 
  9.8   appropriation in Laws 1999, chapter 
  9.9   245, article 1, section 3. 
  9.10  The amounts that may be spent from this 
  9.11  appropriation for each program are 
  9.12  specified in the following subdivisions.
  9.13  Subd. 2.  Health Systems
  9.14  and Special Populations                  -0-            707,000
  9.15                Summary by Fund
  9.16  General                 -0-           707,000
  9.17  [POISON INFORMATION CENTERS.] Of this 
  9.18  appropriation, $540,000 in fiscal year 
  9.19  2001 is for Minnesota Poison 
  9.20  Information Centers under Minnesota 
  9.21  Statutes, section 145.93.  This is a 
  9.22  one-time appropriation.  The 
  9.23  commissioner may use funds available 
  9.24  through the federal preventive health 
  9.25  services block grant to provide 
  9.26  additional funding for the poison 
  9.27  control system. 
  9.28  [BASE LEVEL REDUCTION.] For fiscal 
  9.29  years 2002 and 2003, the base level 
  9.30  appropriation for Minnesota poison 
  9.31  information centers under Minnesota 
  9.32  Statutes, section 145.93 shall be 
  9.33  reduced by $380,000 each year.  Section 
  9.34  6, sunset of uncodified language, does 
  9.35  not apply to this provision. 
  9.36  Sec. 4.  HEALTH-RELATED BOARDS 
  9.37  Subdivision 1.  Total       
  9.38  Appropriation                            150,000          -0-   
  9.39  This appropriation is added to the 
  9.40  appropriation in Laws 1999, chapter 
  9.41  205, article 1, section 5. 
  9.42  [STATE GOVERNMENT SPECIAL REVENUE 
  9.43  FUND.] The appropriation in this 
  9.44  section is from the state government 
  9.45  special revenue fund. 
  9.46  [NO SPENDING IN EXCESS OF REVENUES.] 
  9.47  The commissioner of finance shall not 
  9.48  permit the allotment, encumbrance, or 
  9.49  expenditure of money appropriated in 
  9.50  this section in excess of the 
  9.51  anticipated biennial revenues or 
  9.52  accumulated surplus revenues from fees 
  9.53  collected by the boards.  Neither this 
  9.54  provision nor Minnesota Statutes, 
 10.1   section 214.06, applies to transfers 
 10.2   from the general contingent account. 
 10.3   Subd. 2.  Board of Psychology            150,000        -0-
 10.4   This is a one-time appropriation to the 
 10.5   board for extraordinary legal costs. 
 10.6   Sec. 5.  CARRYOVER LIMITATION 
 10.7   None of the appropriations in this act 
 10.8   which are allowed to be carried forward 
 10.9   from fiscal year 2000 to fiscal year 
 10.10  2001 shall become part of the base 
 10.11  level funding for the 2002-2003 
 10.12  biennial budget, unless specifically 
 10.13  directed by the legislature. 
 10.14  Sec. 6.  SUNSET OF UNCODIFIED LANGUAGE 
 10.15  All uncodified language contained in 
 10.16  this article expires on June 30, 2001, 
 10.17  unless a different expiration date is 
 10.18  explicit. 
 10.19     Sec. 7.  Laws 1999, chapter 245, article 1, section 2, 
 10.20  subdivision 3, is amended to read: 
 10.21  Subd. 3.  Children's Grants
 10.22  General              52,845,000    54,931,000
 10.23  [ADOPTION ASSISTANCE.] Federal funds 
 10.24  available during the biennium ending 
 10.25  June 30, 2001, for adoption incentive 
 10.26  grants, adoption and foster care 
 10.27  recruitment, and other adoption 
 10.28  services, are appropriated to the 
 10.29  commissioner for these purposes the 
 10.30  adoption assistance program under 
 10.31  Minnesota Statutes, section 259.67. 
 10.32     Sec. 8.  [EFFECTIVE DATE.] 
 10.33     The appropriations and reductions for fiscal year 2000 in 
 10.34  this article are effective the day following final enactment. 
 10.35                             ARTICLE 2 
 10.36                            HEALTH CARE 
 10.37     Section 1.  Minnesota Statutes 1998, section 121A.15, 
 10.38  subdivision 4, is amended to read: 
 10.39     Subd. 4.  [SUBSTITUTE IMMUNIZATION STATEMENT.] (a) A person 
 10.40  who is enrolling or enrolled in an elementary or secondary 
 10.41  school or child care facility may substitute a statement from 
 10.42  the emancipated person or a parent or guardian if the person is 
 10.43  a minor child in lieu of the statement from a physician or 
 10.44  public clinic which provides immunizations.  If the statement is 
 10.45  from a parent or guardian or emancipated person, the statement 
 11.1   must indicate the month and year of each immunization given. 
 11.2      (b) In order for the statement to be acceptable for a 
 11.3   person who is enrolling in an elementary school and who is six 
 11.4   years of age or younger, it must indicate that the following was 
 11.5   given:  no less than one dose of vaccine each for measles, 
 11.6   mumps, and rubella given separately or in combination; no less 
 11.7   than four doses of vaccine for poliomyelitis, unless the third 
 11.8   dose was given after the fourth birthday, then three doses are 
 11.9   minimum; no less than five doses of vaccine for diphtheria, 
 11.10  tetanus, and pertussis, unless the fourth dose was given after 
 11.11  the fourth birthday, then four doses are minimum; and no less 
 11.12  than three doses of vaccine for hepatitis B.  
 11.13     (c) In order for the statement to be consistent with 
 11.14  subdivision 10 and acceptable for a person who is enrolling in 
 11.15  an elementary or secondary school and is age seven through age 
 11.16  19, the statement must indicate that the person has received no 
 11.17  less than one dose of vaccine each for measles, mumps, and 
 11.18  rubella given separately or in combination, and no less than 
 11.19  three doses of vaccine for poliomyelitis, diphtheria, tetanus, 
 11.20  and hepatitis B.  
 11.21     (d) In order for the statement to be acceptable for a 
 11.22  person who is enrolling in a secondary school, and who was born 
 11.23  after 1956 and is 20 years of age or older, the statement must 
 11.24  indicate that the person has received no less than one dose of 
 11.25  vaccine each for measles, mumps, and rubella given separately or 
 11.26  in combination, and no less than one dose of vaccine for 
 11.27  diphtheria and tetanus within the preceding ten years. 
 11.28     (e) In order for the statement to be acceptable for a 
 11.29  person who is enrolling in a child care facility and who is at 
 11.30  least 15 months old but who has not reached five years of age, 
 11.31  it must indicate that the following were given:  no less than 
 11.32  one dose of vaccine each for measles, mumps, and rubella given 
 11.33  separately or in combination; no less than one dose of vaccine 
 11.34  for haemophilus influenza type b given at or after the first 
 11.35  birthday; no less than four doses of vaccine for diphtheria, 
 11.36  tetanus, and pertussis; and no less than three doses of vaccine 
 12.1   for poliomyelitis. 
 12.2      (f) In order for the statement to be acceptable for a 
 12.3   person who is enrolling in a child care facility and who is five 
 12.4   or six years of age, it must indicate that the following was 
 12.5   given:  no less than one dose of vaccine each for measles, 
 12.6   mumps, and rubella given separately or in combination; no less 
 12.7   than four doses of vaccine for diphtheria, tetanus, and 
 12.8   pertussis; and no less than three doses of vaccine for 
 12.9   poliomyelitis. 
 12.10     (g) In order for the statement to be acceptable for a 
 12.11  person who is enrolling in a child care facility and who is 
 12.12  seven years of age or older, the statement must indicate that 
 12.13  the person has received no less than one dose of vaccine each 
 12.14  for measles, mumps, and rubella given separately or in 
 12.15  combination and consistent with subdivision 10, and no less than 
 12.16  three doses of vaccine for poliomyelitis, diphtheria, and 
 12.17  tetanus.  
 12.18     (h) The commissioner of health, on finding that any of the 
 12.19  above requirements are not necessary to protect the public's 
 12.20  health, may suspend for one year that requirement.  
 12.21     Sec. 2.  Minnesota Statutes 1998, section 121A.15, 
 12.22  subdivision 10, is amended to read: 
 12.23     Subd. 10.  [REQUIREMENTS FOR IMMUNIZATION STATEMENTS.] (a) 
 12.24  A statement required to be submitted under subdivisions 1, 2, 
 12.25  and 4 to document evidence of immunization shall include month, 
 12.26  day, and year for immunizations administered after January 1, 
 12.27  1990.  
 12.28     (a) For persons enrolled in grades 7 and 12 during the 
 12.29  1996-1997 school term, the statement must indicate that the 
 12.30  person has received a dose of tetanus and diphtheria toxoid no 
 12.31  earlier than 11 years of age. 
 12.32     (b) Except as specified in paragraph (e), for persons 
 12.33  enrolled in grades 7, 8, and 12 during the 1997-1998 school 
 12.34  term, the statement must indicate that the person has received a 
 12.35  dose of tetanus and diphtheria toxoid no earlier than 11 years 
 12.36  of age.  
 13.1      (c) (b) Except as specified in paragraph (e) (d), for 
 13.2   persons enrolled in grades 7 through 12 during the 1998-1999 
 13.3   school term and for each year thereafter, the statement must 
 13.4   indicate that the person has received a dose of tetanus and 
 13.5   diphtheria toxoid no earlier than 11 years of age.  
 13.6      (d) (c) For persons enrolled in grades 7 through 12 during 
 13.7   the 1996-1997 school year and for each year thereafter, the 
 13.8   statement must indicate that the person has received at least 
 13.9   two doses of vaccine against measles, mumps, and rubella, given 
 13.10  alone or separately and given not less than one month 
 13.11  apart.  Beginning with the 2001-2002 school year, persons 
 13.12  entering kindergarten must also meet this requirement. 
 13.13     (e) (d) A person who has received at least three doses of 
 13.14  tetanus and diphtheria toxoids, with the most recent dose given 
 13.15  after age six and before age 11, is not required to have 
 13.16  additional immunization against diphtheria and tetanus until ten 
 13.17  years have elapsed from the person's most recent dose of tetanus 
 13.18  and diphtheria toxoid. 
 13.19     (f) (e) The requirement for hepatitis B vaccination shall 
 13.20  apply to persons enrolling in kindergarten beginning with the 
 13.21  2000-2001 school term. 
 13.22     (g) (f) The requirement for hepatitis B vaccination shall 
 13.23  apply to persons enrolling in grade 7 beginning with the 
 13.24  2001-2002 school term. 
 13.25     Sec. 3.  Minnesota Statutes 1998, section 144.551, 
 13.26  subdivision 1, is amended to read: 
 13.27     Subdivision 1.  [RESTRICTED CONSTRUCTION OR MODIFICATION.] 
 13.28  (a) The following construction or modification may not be 
 13.29  commenced:  
 13.30     (1) any erection, building, alteration, reconstruction, 
 13.31  modernization, improvement, extension, lease, or other 
 13.32  acquisition by or on behalf of a hospital that increases the bed 
 13.33  capacity of a hospital, relocates hospital beds from one 
 13.34  physical facility, complex, or site to another, or otherwise 
 13.35  results in an increase or redistribution of hospital beds within 
 13.36  the state; and 
 14.1      (2) the establishment of a new hospital.  
 14.2      (b) This section does not apply to:  
 14.3      (1) construction or relocation within a county by a 
 14.4   hospital, clinic, or other health care facility that is a 
 14.5   national referral center engaged in substantial programs of 
 14.6   patient care, medical research, and medical education meeting 
 14.7   state and national needs that receives more than 40 percent of 
 14.8   its patients from outside the state of Minnesota; 
 14.9      (2) a project for construction or modification for which a 
 14.10  health care facility held an approved certificate of need on May 
 14.11  1, 1984, regardless of the date of expiration of the 
 14.12  certificate; 
 14.13     (3) a project for which a certificate of need was denied 
 14.14  before July 1, 1990, if a timely appeal results in an order 
 14.15  reversing the denial; 
 14.16     (4) a project exempted from certificate of need 
 14.17  requirements by Laws 1981, chapter 200, section 2; 
 14.18     (5) a project involving consolidation of pediatric 
 14.19  specialty hospital services within the Minneapolis-St. Paul 
 14.20  metropolitan area that would not result in a net increase in the 
 14.21  number of pediatric specialty hospital beds among the hospitals 
 14.22  being consolidated; 
 14.23     (6) a project involving the temporary relocation of 
 14.24  pediatric-orthopedic hospital beds to an existing licensed 
 14.25  hospital that will allow for the reconstruction of a new 
 14.26  philanthropic, pediatric-orthopedic hospital on an existing site 
 14.27  and that will not result in a net increase in the number of 
 14.28  hospital beds.  Upon completion of the reconstruction, the 
 14.29  licenses of both hospitals must be reinstated at the capacity 
 14.30  that existed on each site before the relocation; 
 14.31     (7) the relocation or redistribution of hospital beds 
 14.32  within a hospital building or identifiable complex of buildings 
 14.33  provided the relocation or redistribution does not result in: 
 14.34  (i) an increase in the overall bed capacity at that site; (ii) 
 14.35  relocation of hospital beds from one physical site or complex to 
 14.36  another; or (iii) redistribution of hospital beds within the 
 15.1   state or a region of the state; 
 15.2      (8) relocation or redistribution of hospital beds within a 
 15.3   hospital corporate system that involves the transfer of beds 
 15.4   from a closed facility site or complex to an existing site or 
 15.5   complex provided that:  (i) no more than 50 percent of the 
 15.6   capacity of the closed facility is transferred; (ii) the 
 15.7   capacity of the site or complex to which the beds are 
 15.8   transferred does not increase by more than 50 percent; (iii) the 
 15.9   beds are not transferred outside of a federal health systems 
 15.10  agency boundary in place on July 1, 1983; and (iv) the 
 15.11  relocation or redistribution does not involve the construction 
 15.12  of a new hospital building; 
 15.13     (9) a construction project involving up to 35 new beds in a 
 15.14  psychiatric hospital in Rice county that primarily serves 
 15.15  adolescents and that receives more than 70 percent of its 
 15.16  patients from outside the state of Minnesota; 
 15.17     (10) a project to replace a hospital or hospitals with a 
 15.18  combined licensed capacity of 130 beds or less if:  (i) the new 
 15.19  hospital site is located within five miles of the current site; 
 15.20  and (ii) the total licensed capacity of the replacement 
 15.21  hospital, either at the time of construction of the initial 
 15.22  building or as the result of future expansion, will not exceed 
 15.23  70 licensed hospital beds, or the combined licensed capacity of 
 15.24  the hospitals, whichever is less; 
 15.25     (11) the relocation of licensed hospital beds from an 
 15.26  existing state facility operated by the commissioner of human 
 15.27  services to a new or existing facility, building, or complex 
 15.28  operated by the commissioner of human services; from one 
 15.29  regional treatment center site to another; or from one building 
 15.30  or site to a new or existing building or site on the same 
 15.31  campus; or 
 15.32     (12) the construction or relocation of hospital beds 
 15.33  operated by a hospital having a statutory obligation to provide 
 15.34  hospital and medical services for the indigent that does not 
 15.35  result in a net increase in the number of hospital beds; or 
 15.36     (13) a construction project involving the addition of up to 
 16.1   31 new beds in an existing nonfederal hospital in Beltrami 
 16.2   county. 
 16.3      Sec. 4.  Minnesota Statutes 1999 Supplement, section 
 16.4   144A.04, subdivision 5, is amended to read: 
 16.5      Subd. 5.  [ADMINISTRATORS.] Except as otherwise provided by 
 16.6   this subdivision, a nursing home must have a full time licensed 
 16.7   nursing home administrator serving the facility.  
 16.8   Notwithstanding sections 144A.18 to 144A.27, in any nursing home 
 16.9   of less than 32 37 beds, the director of nursing services may 
 16.10  also serve as the licensed nursing home administrator without 
 16.11  being licensed as a nursing home administrator, provided the 
 16.12  director of nursing services has passed the state law and rules 
 16.13  examination administered by the board of examiners for nursing 
 16.14  home administrators and maintains evidence of completion of 20 
 16.15  hours of continuing education each year on topics pertinent to 
 16.16  nursing home administration.  Two nursing homes under common 
 16.17  ownership or management pursuant to a lease or management 
 16.18  contract having a total of 150 beds or less and located within 
 16.19  75 miles of each other may share the services of a licensed 
 16.20  administrator if the administrator divides the full-time work 
 16.21  week between the two facilities in proportion to the number of 
 16.22  beds in each facility.  Every nursing home shall have a 
 16.23  person-in-charge on the premises at all times in the absence of 
 16.24  the licensed administrator.  The name of the person in charge 
 16.25  must be posted in a conspicuous place in the facility.  The 
 16.26  commissioner of health shall by rule promulgate minimum 
 16.27  education and experience requirements for persons-in-charge, and 
 16.28  may promulgate rules specifying the times of day during which a 
 16.29  licensed administrator must be on the nursing home's premises.  
 16.30  In the absence of rules adopted by the commissioner governing 
 16.31  the division of an administrator's time between two nursing 
 16.32  homes, the administrator shall designate and post the times the 
 16.33  administrator will be on site in each home on a regular basis.  
 16.34  A nursing home may employ as its administrator the administrator 
 16.35  of a hospital licensed pursuant to sections 144.50 to 144.56 if 
 16.36  the individual is licensed as a nursing home administrator 
 17.1   pursuant to section 144A.20 and the nursing home and hospital 
 17.2   have a combined total of 150 beds or less and are located within 
 17.3   one mile of each other.  A nonproprietary retirement home having 
 17.4   fewer than 15 licensed nursing home beds may share the services 
 17.5   of a licensed administrator with a nonproprietary nursing home, 
 17.6   having fewer than 150 licensed nursing home beds, that is 
 17.7   located within 25 miles of the retirement home.  A nursing home 
 17.8   which is located in a facility licensed as a hospital pursuant 
 17.9   to sections 144.50 to 144.56, may employ as its administrator 
 17.10  the administrator of the hospital if the individual meets 
 17.11  minimum education and long term care experience criteria set by 
 17.12  rule of the commissioner of health. 
 17.13     Sec. 5.  Minnesota Statutes 1998, section 144A.071, is 
 17.14  amended by adding a subdivision to read: 
 17.15     Subd. 4b.  [LICENSED BEDS ON LAYAWAY STATUS.] A licensed 
 17.16  and certified nursing facility may lay away, upon prior written 
 17.17  notice to the commissioners of health and human services, 
 17.18  licensed and certified beds.  Notice to the commissioners shall 
 17.19  be given 60 days prior to the effective date of the layaway.  
 17.20  Beds on layaway shall have the same status as voluntarily 
 17.21  delicensed and decertified beds and shall not be subject to 
 17.22  license fees and license surcharge fees.  In addition, beds on 
 17.23  layaway status may be relicensed and recertified at any time on 
 17.24  or after one year after the effective date of layaway in the 
 17.25  facility of origin, with a 60-day notice to the commissioner of 
 17.26  health.  A nursing facility that relicenses and recertifies beds 
 17.27  placed on layaway may not place beds on layaway status for one 
 17.28  year after the effective date of the relicensure and 
 17.29  recertification.  Beds may remain on layaway status for up to 
 17.30  five years. 
 17.31     Sec. 6.  [145.4241] [DEFINITIONS.] 
 17.32     Subdivision 1.  [APPLICABILITY.] As used in sections 
 17.33  145.4241 to 145.4246, the following terms have the meaning given 
 17.34  them. 
 17.35     Subd. 2.  [ABORTION.] "Abortion" means the use or 
 17.36  prescription of any instrument, medicine, drug, or any other 
 18.1   substance or device to intentionally terminate the pregnancy of 
 18.2   a female known to be pregnant, with an intention other than to 
 18.3   increase the probability of a live birth, to preserve the life 
 18.4   or health of the child after live birth, or to remove a dead 
 18.5   fetus.  
 18.6      Subd. 3.  [ATTEMPT TO PERFORM AN ABORTION.] "Attempt to 
 18.7   perform an abortion" means an act, or an omission of a 
 18.8   statutorily required act, that, under the circumstances as the 
 18.9   actor believes them to be, constitutes a substantial step in a 
 18.10  course of conduct planned to culminate in the performance of an 
 18.11  abortion in Minnesota in violation of sections 145.4241 to 
 18.12  145.4246. 
 18.13     Subd. 4.  [MEDICAL EMERGENCY.] "Medical emergency" means 
 18.14  any condition that, on the basis of the physician's good faith 
 18.15  clinical judgment, complicates the medical condition of a 
 18.16  pregnant female to the extent that: 
 18.17     (1) an immediate abortion of her pregnancy is necessary to 
 18.18  avert her death; or 
 18.19     (2) a 24-hour delay in performing an abortion creates a 
 18.20  serious risk of substantial and irreversible impairment of a 
 18.21  major bodily function.  
 18.22     Subd. 5.  [PHYSICIAN.] "Physician" means a person licensed 
 18.23  under chapter 147. 
 18.24     Subd. 6.  [PROBABLE GESTATIONAL AGE OF THE UNBORN 
 18.25  CHILD.] "Probable gestational age of the unborn child" means 
 18.26  what will, in the judgment of the physician, with reasonable 
 18.27  probability, be the gestational age of the unborn child at the 
 18.28  time the abortion is planned to be performed. 
 18.29     Sec. 7.  [145.4242] [INFORMED CONSENT.] 
 18.30     No abortion shall be performed in this state except with 
 18.31  the voluntary and informed consent of the female upon whom the 
 18.32  abortion is to be performed.  Except in the case of a medical 
 18.33  emergency, consent to an abortion is voluntary and informed only 
 18.34  if: 
 18.35     (1) the female is told the following, by telephone or in 
 18.36  person, by the physician who is to perform the abortion or by a 
 19.1   referring physician, at least 24 hours before the abortion: 
 19.2      (i) the name of the physician who will perform the 
 19.3   abortion; 
 19.4      (ii) the particular medical risks associated with the 
 19.5   particular abortion procedure to be employed including, when 
 19.6   medically accurate, the risks of infection, hemorrhage, breast 
 19.7   cancer, danger to subsequent pregnancies, and infertility; 
 19.8      (iii) the probable gestational age of the unborn child at 
 19.9   the time the abortion is to be performed; and 
 19.10     (iv) the medical risks associated with carrying her child 
 19.11  to term. 
 19.12     The information required by this clause may be provided by 
 19.13  telephone without conducting a physical examination or tests of 
 19.14  the patient, in which case the information required to be 
 19.15  provided may be based on facts supplied the physician by the 
 19.16  female and whatever other relevant information is reasonably 
 19.17  available to the physician.  It may not be provided by a tape 
 19.18  recording, but must be provided during a consultation in which 
 19.19  the physician is able to ask questions of the female and the 
 19.20  female is able to ask questions of the physician.  If a physical 
 19.21  examination, tests, or the availability of other information to 
 19.22  the physician subsequently indicate, in the medical judgment of 
 19.23  the physician, a revision of the information previously supplied 
 19.24  to the patient, that revised information may be communicated to 
 19.25  the patient at any time prior to the performance of the 
 19.26  abortion.  Nothing in this section may be construed to preclude 
 19.27  provision of required information in a language understood by 
 19.28  the patient through a translator; 
 19.29     (2) the female is informed, by telephone or in person, by 
 19.30  the physician who is to perform the abortion, by a referring 
 19.31  physician, or by an agent of either physician at least 24 hours 
 19.32  before the abortion: 
 19.33     (i) that medical assistance benefits may be available for 
 19.34  prenatal care, childbirth, and neonatal care; 
 19.35     (ii) that the father is liable to assist in the support of 
 19.36  her child, even in instances when the father has offered to pay 
 20.1   for the abortion; and 
 20.2      (iii) that she has the right to review the printed 
 20.3   materials described in section 145.4243.  The physician or the 
 20.4   physician's agent shall orally inform the female that the 
 20.5   materials have been provided by the state of Minnesota and that 
 20.6   they describe the unborn child and list agencies that offer 
 20.7   alternatives to abortion.  If the female chooses to view the 
 20.8   materials, they shall either be given to her at least 24 hours 
 20.9   before the abortion or mailed to her at least 72 hours before 
 20.10  the abortion by certified mail, restricted delivery to 
 20.11  addressee, which means the postal employee can only deliver the 
 20.12  mail to the addressee.  
 20.13     The information required by this clause may be provided by 
 20.14  a tape recording if provision is made to record or otherwise 
 20.15  register specifically whether the female does or does not choose 
 20.16  to review the printed materials; 
 20.17     (3) the female certifies in writing, prior to the abortion, 
 20.18  that the information described in this section has been 
 20.19  furnished her, and that she has been informed of her opportunity 
 20.20  to review the information referred to in clause (2); and 
 20.21     (4) prior to the performance of the abortion, the physician 
 20.22  who is to perform the abortion or the physician's agent receives 
 20.23  a copy of the written certification prescribed by clause (3). 
 20.24     Sec. 8.  [145.4243] [PRINTED INFORMATION.] 
 20.25     (a) Within 90 days after the effective date of sections 
 20.26  145.4241 to 145.4246, the department of health shall cause to be 
 20.27  published, in English and in each language that is the primary 
 20.28  language of two percent or more of the state's population, the 
 20.29  following printed materials in such a way as to ensure that the 
 20.30  information is easily comprehensible: 
 20.31     (1) geographically indexed materials designed to inform the 
 20.32  female of public and private agencies and services available to 
 20.33  assist a female through pregnancy, upon childbirth, and while 
 20.34  the child is dependent, including adoption agencies, which shall 
 20.35  include a comprehensive list of the agencies available, a 
 20.36  description of the services they offer, and a description of the 
 21.1   manner, including telephone numbers, in which they might be 
 21.2   contacted or, at the option of the department of health, printed 
 21.3   materials including a toll-free, 24-hours-a-day telephone number 
 21.4   that may be called to obtain, orally, such a list and 
 21.5   description of agencies in the locality of the caller and of the 
 21.6   services they offer; and 
 21.7      (2) materials designed to inform the female of the probable 
 21.8   anatomical and physiological characteristics of the unborn child 
 21.9   at two-week gestational increments from the time when a female 
 21.10  can be known to be pregnant to full term, including any relevant 
 21.11  information on the possibility of the unborn child's survival 
 21.12  and pictures or drawings representing the development of unborn 
 21.13  children at two-week gestational increments, provided that any 
 21.14  such pictures or drawings must contain the dimensions of the 
 21.15  fetus and must be realistic and appropriate for the stage of 
 21.16  pregnancy depicted.  The materials shall be objective, 
 21.17  nonjudgmental, and designed to convey only accurate scientific 
 21.18  information about the unborn child at the various gestational 
 21.19  ages.  The material shall also contain objective information 
 21.20  describing the methods of abortion procedures commonly employed, 
 21.21  the medical risks commonly associated with each procedure, the 
 21.22  possible detrimental psychological effects of abortion, the 
 21.23  medical risks commonly associated with each procedure, and the 
 21.24  medical risks commonly associated with carrying a child to term. 
 21.25     (b) The materials referred to in this section must be 
 21.26  printed in a typeface large enough to be clearly legible.  The 
 21.27  materials required under this section must be available at no 
 21.28  cost from the department of health upon request and in 
 21.29  appropriate number to any person, facility, or hospital.  
 21.30     Sec. 9.  [145.4244] [PROCEDURE IN CASE OF MEDICAL 
 21.31  EMERGENCY.] 
 21.32     When a medical emergency compels the performance of an 
 21.33  abortion, the physician shall inform the female, prior to the 
 21.34  abortion if possible, of the medical indications supporting the 
 21.35  physician's judgment that an abortion is necessary to avert her 
 21.36  death or that a 24-hour delay in conformance with section 
 22.1   145.4242 creates a serious risk of substantial and irreversible 
 22.2   impairment of a major bodily function. 
 22.3      Sec. 10.  [145.4245] [REMEDIES.] 
 22.4      Subdivision 1.  [CIVIL REMEDIES.] Any person upon whom an 
 22.5   abortion has been performed or the parent of a minor upon whom 
 22.6   an abortion has been performed may maintain an action against 
 22.7   the person who performed the abortion in knowing or reckless 
 22.8   violation of sections 145.4241 to 145.4246 for actual and 
 22.9   punitive damages.  Any person upon whom an abortion has been 
 22.10  attempted without complying with sections 145.4241 to 145.4246 
 22.11  may maintain an action against the person who attempted to 
 22.12  perform the abortion in knowing or reckless violation of 
 22.13  sections 145.4241 to 145.4246 for actual and punitive damages. 
 22.14     Subd. 2.  [ATTORNEY FEES.] If judgment is rendered in favor 
 22.15  of the plaintiff in any action described in this section, the 
 22.16  court shall also render judgment for a reasonable attorney's fee 
 22.17  in favor of the plaintiff against the defendant.  If judgment is 
 22.18  rendered in favor of the defendant and the court finds that the 
 22.19  plaintiff's suit was frivolous and brought in bad faith, the 
 22.20  court shall also render judgment for a reasonable attorney's fee 
 22.21  in favor of the defendant against the plaintiff. 
 22.22     Subd. 3.  [PROTECTION OF PRIVACY IN COURT PROCEEDINGS.] In 
 22.23  every civil action brought under sections 145.4241 to 145.4246, 
 22.24  the court shall rule whether the anonymity of any female upon 
 22.25  whom an abortion has been performed or attempted shall be 
 22.26  preserved from public disclosure if she does not give her 
 22.27  consent to such disclosure.  The court, upon motion or sua 
 22.28  sponte, shall make such a ruling and, upon determining that her 
 22.29  anonymity should be preserved, shall issue orders to the 
 22.30  parties, witnesses, and counsel and shall direct the sealing of 
 22.31  the record and exclusion of individuals from courtrooms or 
 22.32  hearing rooms to the extent necessary to safeguard her identity 
 22.33  from public disclosure.  Each order must be accompanied by 
 22.34  specific written findings explaining why the anonymity of the 
 22.35  female should be preserved from public disclosure, why the order 
 22.36  is essential to that end, how the order is narrowly tailored to 
 23.1   serve that interest, and why no reasonable, less restrictive 
 23.2   alternative exists.  In the absence of written consent of the 
 23.3   female upon whom an abortion has been performed or attempted, 
 23.4   anyone, other than a public official, who brings an action under 
 23.5   subdivision 1, shall do so under a pseudonym.  This section may 
 23.6   not be construed to conceal the identity of the plaintiff or of 
 23.7   witnesses from the defendant. 
 23.8      Sec. 11.  [145.4246] [SEVERABILITY.] 
 23.9      If any one or more provision, section, subsection, 
 23.10  sentence, clause, phrase, or word of sections 145.4241 to 
 23.11  145.4246 or the application thereof to any person or 
 23.12  circumstance is found to be unconstitutional, the same is hereby 
 23.13  declared to be severable and the balance of sections 145.4241 to 
 23.14  145.4246 shall remain effective notwithstanding such 
 23.15  unconstitutionality.  The legislature hereby declares that it 
 23.16  would have passed sections 145.4241 to 145.4246, and each 
 23.17  provision, section, subsection, sentence, clause, phrase, or 
 23.18  word thereof, irrespective of the fact that any one or more 
 23.19  provision, section, subsection, sentence, clause, phrase, or 
 23.20  word be declared unconstitutional. 
 23.21     Sec. 12.  [252.461] [ALTERNATIVE RATE-SETTING 
 23.22  METHODOLOGIES.] 
 23.23     (a) The commissioner may approve alternative rate-setting 
 23.24  methodologies for identified day training and habilitation 
 23.25  vendors recommended by the day training and habilitation task 
 23.26  force established under Laws 1999, chapter 152, that are 
 23.27  supported by all members of the task force.  Any alternative 
 23.28  rate-setting methodology approved under this section must sunset 
 23.29  upon implementation of the new statewide payments rate structure 
 23.30  recommended by the task force in its report to the legislature 
 23.31  on January 15, 2001. 
 23.32     (b) The commissioner may grant a variance to any of the 
 23.33  provisions in sections 252.451, subdivision 5; 252.46, except 
 23.34  subdivision 16; and Minnesota Rules, part 9525.1290, subpart 1, 
 23.35  items A and B, necessary to implement the alternative 
 23.36  rate-setting methodologies approved by the task force under 
 24.1   paragraph (a). 
 24.2      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 24.3   following final enactment. 
 24.4      Sec. 13.  Minnesota Statutes 1998, section 254B.03, 
 24.5   subdivision 1, is amended to read: 
 24.6      Subdivision 1.  [LOCAL AGENCY DUTIES.] (a) Every local 
 24.7   agency shall provide chemical dependency services to persons 
 24.8   residing within its jurisdiction who meet criteria established 
 24.9   by the commissioner for placement in a chemical dependency 
 24.10  residential or nonresidential treatment service.  Chemical 
 24.11  dependency money must be administered by the local agencies 
 24.12  according to law and rules adopted by the commissioner under 
 24.13  sections 14.001 to 14.69. 
 24.14     (b) In order to contain costs, the county board shall, with 
 24.15  the approval of the commissioner of human services, select 
 24.16  eligible vendors of chemical dependency services who can provide 
 24.17  economical and appropriate treatment.  Unless the local agency 
 24.18  is a social services department directly administered by a 
 24.19  county or human services board, the local agency shall not be an 
 24.20  eligible vendor under section 254B.05.  The commissioner may 
 24.21  approve proposals from county boards to provide services in an 
 24.22  economical manner or to control utilization, with safeguards to 
 24.23  ensure that necessary services are provided.  If a county 
 24.24  implements a demonstration or experimental medical services 
 24.25  funding plan, the commissioner shall transfer the money as 
 24.26  appropriate.  If a county selects a vendor located in another 
 24.27  state, the county shall ensure that the vendor is in compliance 
 24.28  with the rules governing licensure of programs located in the 
 24.29  state. 
 24.30     (c) The calendar year 1998 rate for vendors may not 
 24.31  increase more than three percent above the rate approved in 
 24.32  effect on January 1, 1997.  The calendar year 1999 rate for 
 24.33  vendors may not increase more than three percent above the rate 
 24.34  in effect on January 1, 1998. 
 24.35     (d) A culturally specific vendor that provides assessments 
 24.36  under a variance under Minnesota Rules, part 9530.6610, shall be 
 25.1   allowed to provide assessment services to persons not covered by 
 25.2   the variance. 
 25.3      (e) The rates for vendors of inpatient treatment services 
 25.4   for calendar year 2001 may not increase more than one percent 
 25.5   above the rate in effect on January 1, 2000. 
 25.6      (f) The calendar year 2001 rate for vendors of outpatient 
 25.7   treatment services may not increase more than three percent 
 25.8   above the rate in effect on January 1, 2000. 
 25.9      Sec. 14.  Minnesota Statutes 1998, section 256.955, 
 25.10  subdivision 1, is amended to read: 
 25.11     Subdivision 1.  [ESTABLISHMENT.] The commissioner of human 
 25.12  services shall establish and administer a senior citizen 
 25.13  prescription drug program.  Qualified senior citizens 
 25.14  individuals shall be eligible for prescription drug coverage 
 25.15  under the program beginning no later than January 1, 1999. 
 25.16     Sec. 15.  Minnesota Statutes 1998, section 256.955, 
 25.17  subdivision 2, is amended to read: 
 25.18     Subd. 2.  [DEFINITIONS.] (a) For purposes of this section, 
 25.19  the following definitions apply. 
 25.20     (b) "Health plan" has the meaning provided in section 
 25.21  62Q.01, subdivision 3. 
 25.22     (c) "Health plan company" has the meaning provided in 
 25.23  section 62Q.01, subdivision 4. 
 25.24     (d) "Qualified senior citizen individual" means a Medicare 
 25.25  enrollee, or an individual age 65 or older who is not a Medicare 
 25.26  enrollee, who: 
 25.27     (1) is eligible as a qualified Medicare beneficiary 
 25.28  according to section 256B.057, subdivision 3 or 3a, or is 
 25.29  eligible under section 256B.057, subdivision 3 or 3a, and is 
 25.30  also eligible for medical assistance or general assistance 
 25.31  medical care with a spenddown as defined in section 256B.056, 
 25.32  subdivision 5.  Persons who are determined eligible for medical 
 25.33  assistance according to section 256B.0575, who are eligible for 
 25.34  medical assistance or general assistance medical care without a 
 25.35  spenddown, or who are enrolled in MinnesotaCare, are not 
 25.36  eligible for this program has a household income that does not 
 26.1   exceed 120 percent of the federal poverty guidelines for family 
 26.2   size, using the income methodologies specified for aged, blind, 
 26.3   or disabled persons in section 256B.056, subdivision 1a; 
 26.4      (2) has assets that do not exceed $8,000 for a single 
 26.5   individual and $12,000 for a married couple or family of two or 
 26.6   more, as determined using the methodologies specified for aged, 
 26.7   blind, or disabled persons in section 256B.056, subdivision 1a; 
 26.8      (2) (3) is not enrolled in prescription drug coverage under 
 26.9   a health plan; 
 26.10     (3) (4) is not enrolled in prescription drug coverage under 
 26.11  a Medicare supplement plan, as defined in sections 62A.31 to 
 26.12  62A.44, or policies, contracts, or certificates that supplement 
 26.13  Medicare issued by health maintenance organizations or those 
 26.14  policies, contracts, or certificates governed by section 1833 or 
 26.15  1876 of the federal Social Security Act, United States Code, 
 26.16  title 42, section 1395, et seq., as amended; 
 26.17     (4) (5) has not had coverage described in clauses (2) and 
 26.18  (3) for at least four months prior to application for the 
 26.19  program; and 
 26.20     (5) (6) is a permanent resident of Minnesota as defined in 
 26.21  section 256L.09; and 
 26.22     (7) is not eligible for MinnesotaCare, for medical 
 26.23  assistance according to section 256B.0575, or for medical 
 26.24  assistance or general assistance medical care without a 
 26.25  spenddown. 
 26.26     Sec. 16.  Minnesota Statutes 1999 Supplement, section 
 26.27  256.955, subdivision 4, is amended to read: 
 26.28     Subd. 4.  [APPLICATION PROCEDURES AND COORDINATION WITH 
 26.29  MEDICAL ASSISTANCE.] Applications and information on the program 
 26.30  must be made available at county social service agencies, health 
 26.31  care provider offices, and agencies and organizations serving 
 26.32  senior citizens and persons with disabilities.  Senior citizens 
 26.33  Individuals shall submit applications and any information 
 26.34  specified by the commissioner as being necessary to verify 
 26.35  eligibility directly to the county social service agencies:  
 26.36     (1) beginning January 1, 1999, the county social service 
 27.1   agency shall determine medical assistance spenddown eligibility 
 27.2   of individuals who qualify for the senior citizen prescription 
 27.3   drug program of individuals; and 
 27.4      (2) program payments will be used to reduce the spenddown 
 27.5   obligations of individuals who are determined to be eligible for 
 27.6   medical assistance with a spenddown as defined in section 
 27.7   256B.056, subdivision 5. 
 27.8   Seniors Qualified individuals who are eligible for medical 
 27.9   assistance with a spenddown shall be financially responsible for 
 27.10  the deductible amount up to the satisfaction of the spenddown.  
 27.11  No deductible applies once the spenddown has been met.  Payments 
 27.12  to providers for prescription drugs for persons eligible under 
 27.13  this subdivision shall be reduced by the deductible.  
 27.14     County social service agencies shall determine an 
 27.15  applicant's eligibility for the program within 30 days from the 
 27.16  date the application is received.  Eligibility begins the month 
 27.17  after approval. 
 27.18     Sec. 17.  Minnesota Statutes 1999 Supplement, section 
 27.19  256.955, subdivision 8, is amended to read: 
 27.20     Subd. 8.  [REPORT.] The commissioner shall annually report 
 27.21  to the legislature on the senior citizen prescription drug 
 27.22  program.  The report must include demographic information on 
 27.23  enrollees, per-prescription expenditures, total program 
 27.24  expenditures, hospital and nursing home costs avoided by 
 27.25  enrollees, any savings to medical assistance and Medicare 
 27.26  resulting from the provision of prescription drug coverage under 
 27.27  Medicare by health maintenance organizations, other public and 
 27.28  private options for drug assistance to the senior covered 
 27.29  population, any hardships caused by the annual deductible, and 
 27.30  any recommendations for changes in the senior prescription drug 
 27.31  program. 
 27.32     Sec. 18.  Minnesota Statutes 1999 Supplement, section 
 27.33  256.955, subdivision 9, is amended to read: 
 27.34     Subd. 9.  [PROGRAM LIMITATION.] The commissioner shall 
 27.35  administer the senior prescription drug program so that the 
 27.36  costs total no more than funds appropriated plus the drug rebate 
 28.1   proceeds.  Senior Prescription drug program rebate revenues are 
 28.2   appropriated to the commissioner and shall be expended to 
 28.3   augment funding of the senior prescription drug program.  New 
 28.4   enrollment shall cease if the commissioner determines that, 
 28.5   given current enrollment, costs of the program will exceed 
 28.6   appropriated funds and rebate proceeds.  This section shall be 
 28.7   repealed upon federal approval of the waiver to allow the 
 28.8   commissioner to provide prescription drug coverage for qualified 
 28.9   Medicare beneficiaries whose income is less than 150 percent of 
 28.10  the federal poverty guidelines. 
 28.11     Sec. 19.  Minnesota Statutes 1998, section 256B.431, is 
 28.12  amended by adding a subdivision to read: 
 28.13     Subd. 29.  [NURSING FACILITY RATE FLOOR.] (a) For the rate 
 28.14  year beginning July 1, 2000, the commissioner shall adjust 
 28.15  operating costs per diem for nursing facilities reimbursed under 
 28.16  this section and section 256B.434 as provided in this 
 28.17  subdivision. 
 28.18     (b) For each nursing facility, the commissioner, after 
 28.19  applying the adjustment in subdivision 28, shall compare the 
 28.20  operating costs per diem listed in this paragraph to the 
 28.21  operating costs per diem the facility would otherwise receive 
 28.22  for the July 1, 2000, rate year. 
 28.23       Case mix classification     Operating costs per diem
 28.24                 A                         $ 62.10
 28.25                 B                         $ 68.56
 28.26                 C                         $ 75.88
 28.27                 D                         $ 82.55
 28.28                 E                         $ 89.44
 28.29                 F                         $ 89.87
 28.30                 G                         $ 95.69
 28.31                 H                         $106.67
 28.32                 I                         $110.54
 28.33                 J                         $116.57
 28.34                 K                         $129.28
 28.35     (c) If a facility's total reimbursement for operating 
 28.36  costs, using the case mix classification operating costs per 
 29.1   diem listed in paragraph (b), is greater than the total 
 29.2   reimbursement for operating costs the facility would otherwise 
 29.3   receive, the commissioner shall calculate operating costs per 
 29.4   diem for that facility for the rate year beginning July 1, 2000, 
 29.5   using the case mix classification operating costs per diem 
 29.6   listed in paragraph (b). 
 29.7      (d) If a facility's total reimbursement for operating 
 29.8   costs, using the case mix classification costs per diem listed 
 29.9   in paragraph (b), is less than the total reimbursement for 
 29.10  operating costs the facility would otherwise receive, the 
 29.11  commissioner shall reimburse that facility for the rate year 
 29.12  beginning July 1, 2000, as provided in this section or section 
 29.13  256B.434, whichever is applicable, and shall not calculate 
 29.14  operating costs per diem for that facility using the case mix 
 29.15  classification operating costs per diem listed in paragraph (b). 
 29.16     Sec. 20.  Minnesota Statutes 1998, section 256B.431, is 
 29.17  amended by adding a subdivision to read: 
 29.18     Subd. 30.  [BED LAYAWAY AND DELICENSURE.] (a) For rate 
 29.19  years beginning on or after July 1, 2000, a nursing facility 
 29.20  reimbursed under this section which has placed beds on layaway 
 29.21  status shall, for purposes of application of the downsizing 
 29.22  incentive in subdivision 3a, paragraph (d) and calculation of 
 29.23  the rental per diem, have those beds given the same effect as if 
 29.24  the beds had been delicensed so long as the beds remain on 
 29.25  layaway status.  At the time of a layaway, a facility may change 
 29.26  its single bed election for use in calculating capacity days 
 29.27  under Minnesota Rules, part 9549.0060, subpart 11.  The property 
 29.28  payment rate increase shall be effective the first day of the 
 29.29  month following the month in which the layaway of the beds 
 29.30  becomes effective under section 144A.171, subdivision 4b. 
 29.31     (b) For rate years beginning on or after July 1, 2000, 
 29.32  notwithstanding any provision to the contrary under section 
 29.33  256B.434, a nursing facility reimbursed under that section which 
 29.34  has placed beds on layaway status shall, for so long as the beds 
 29.35  remain on layaway status, be allowed to: 
 29.36     (1) aggregate the applicable investment per bed limits 
 30.1   based on the number of beds licensed immediately prior to 
 30.2   entering the alternative payment system; 
 30.3      (2) retain or change the facility's single bed election for 
 30.4   use in calculating capacity days under Minnesota rules, part 
 30.5   9549.0060, subpart 11; and 
 30.6      (3) establish capacity days for each rate year following 
 30.7   the layaway based on the number of beds licensed less the number 
 30.8   of beds on layaway status. 
 30.9   The commissioner shall increase the facility's property payment 
 30.10  rate by the incremental increase in the rental per diem 
 30.11  resulting from the recalculation of the facility's rental per 
 30.12  diem applying only the changes resulting from the layaway of 
 30.13  beds and clauses (1), (2), and (3).  The property payment rate 
 30.14  increase shall be effective the first day of the month following 
 30.15  the month in which the layaway of the beds becomes effective. 
 30.16     (c) If a nursing facility removes a bed from layaway status 
 30.17  in accordance with section 144A.071, subdivision 4, the 
 30.18  commissioner shall establish capacity days based on the number 
 30.19  of licensed and certified beds in the facility not on layaway 
 30.20  and shall reduce the nursing facility's property payment rate in 
 30.21  accordance with paragraph (b). 
 30.22     (d) For the rate years beginning on or after July 1, 2000, 
 30.23  notwithstanding any provision to the contrary under section 
 30.24  256B.434, a nursing facility reimbursed under that section, 
 30.25  which has delicensed beds after July 1, 2000 by giving notice of 
 30.26  the delicensure to the commissioners of health and human 
 30.27  services according to the notice requirements in subdivision 4b, 
 30.28  shall be allowed to: 
 30.29     (1) aggregate the applicable investment per bed limits 
 30.30  based on the number of beds licensed immediately prior to 
 30.31  entering the alternative payment system; 
 30.32     (2) establish the facility's single bed election for use in 
 30.33  calculating capacity days under Minnesota Rules, part 9549.0060, 
 30.34  subpart 11; and 
 30.35     (3) establish capacity days for each rate year following 
 30.36  the delicensure based on the number of beds licensed after the 
 31.1   reduction. 
 31.2   The commissioner shall increase the facility's property payment 
 31.3   rate by the incremental increase in the rental per diem 
 31.4   resulting from the recalculation of the facility's rental per 
 31.5   diem applying only the changes resulting from the delicensure of 
 31.6   beds and clauses (1), (2), and (3).  The property payment rate 
 31.7   increase shall be effective the first day of the month following 
 31.8   the month in which the delicensure of the beds becomes effective.
 31.9      (e) For nursing facilities reimbursed under this section 
 31.10  and section 256B.434, any beds placed in layaway status shall 
 31.11  not be included in calculating facility occupancy as it pertains 
 31.12  to leave days defined in Minnesota Rules, part 9505.0415. 
 31.13     (f) For nursing facilities reimbursed under this section 
 31.14  and section 256B.434, the rental rate calculated after placing 
 31.15  beds on layaway status may not be less than the rental rate 
 31.16  prior to placing beds on layaway status. 
 31.17     (g) A nursing facility receiving a rate adjustment as a 
 31.18  result of this section shall comply with section 256B.47, 
 31.19  subdivision 2. 
 31.20     Sec. 21.  Minnesota Statutes 1998, section 256B.69, 
 31.21  subdivision 5d, is amended to read: 
 31.22     Subd. 5d.  [MODIFICATION OF PAYMENT DATES EFFECTIVE JANUARY 
 31.23  1, 2001.] Effective for services rendered on or after January 1, 
 31.24  2001, capitation payments under this section and under section 
 31.25  256D.03 for services provided in the month of June shall be made 
 31.26  no earlier than the first day after the month of service. 
 31.27     Sec. 22.  Minnesota Statutes 1998, section 256L.05, 
 31.28  subdivision 5, is amended to read: 
 31.29     Subd. 5.  [AVAILABILITY OF PRIVATE INSURANCE.] The 
 31.30  commissioner, in consultation with the commissioners of health 
 31.31  and commerce, shall provide information regarding the 
 31.32  availability of private health insurance coverage and the 
 31.33  possibility of disenrollment under section 256L.07, subdivision 
 31.34  1, paragraphs (b) and (c), to all:  (1) families and individuals 
 31.35  enrolled in the MinnesotaCare program whose gross family income 
 31.36  is equal to or more than 200 225 percent of the federal poverty 
 32.1   guidelines; and (2) single adults and households without 
 32.2   children enrolled in the MinnesotaCare program whose gross 
 32.3   family income is equal to or more than 165 percent of the 
 32.4   federal poverty guidelines.  This information must be provided 
 32.5   upon initial enrollment and annually thereafter.  The 
 32.6   commissioner shall also include information regarding the 
 32.7   availability of private health insurance coverage in the notice 
 32.8   of ineligibility provided to persons subject to disenrollment 
 32.9   under section 256L.07, subdivision 1, paragraphs (b) and (c). 
 32.10     Sec. 23.  Minnesota Statutes 1999 Supplement, section 
 32.11  256L.07, subdivision 1, is amended to read: 
 32.12     Subdivision 1.  [GENERAL REQUIREMENTS.] (a) Children 
 32.13  enrolled in the original children's health plan as of September 
 32.14  30, 1992, children who enrolled in the MinnesotaCare program 
 32.15  after September 30, 1992, pursuant to Laws 1992, chapter 549, 
 32.16  article 4, section 17, and children who have family gross 
 32.17  incomes that are equal to or less than 150 percent of the 
 32.18  federal poverty guidelines are eligible without meeting the 
 32.19  requirements of subdivision 2, as long as they maintain 
 32.20  continuous coverage in the MinnesotaCare program or medical 
 32.21  assistance.  Children who apply for MinnesotaCare on or after 
 32.22  the implementation date of the employer-subsidized health 
 32.23  coverage program as described in Laws 1998, chapter 407, article 
 32.24  5, section 45, who have family gross incomes that are equal to 
 32.25  or less than 150 percent of the federal poverty guidelines, must 
 32.26  meet the requirements of subdivision 2 to be eligible for 
 32.27  MinnesotaCare. 
 32.28     (b) Families enrolled in MinnesotaCare under section 
 32.29  256L.04, subdivision 1, whose income increases above 275 percent 
 32.30  of the federal poverty guidelines, are no longer eligible for 
 32.31  the program and shall be disenrolled by the commissioner.  
 32.32  Individuals enrolled in MinnesotaCare under section 256L.04, 
 32.33  subdivision 7, whose income increases above 175 percent of the 
 32.34  federal poverty guidelines are no longer eligible for the 
 32.35  program and shall be disenrolled by the commissioner.  For 
 32.36  persons disenrolled under this subdivision, MinnesotaCare 
 33.1   coverage terminates the last day of the calendar month following 
 33.2   the month in which the commissioner determines that the income 
 33.3   of a family or individual exceeds program income limits.  
 33.4      (c) Notwithstanding paragraph (b), individuals and families 
 33.5   may remain enrolled in MinnesotaCare if ten percent of their 
 33.6   annual income is less than the annual premium for a policy with 
 33.7   a $500 deductible available through the Minnesota comprehensive 
 33.8   health association.  Individuals and families who are no longer 
 33.9   eligible for MinnesotaCare under this subdivision shall be given 
 33.10  an 18-month a 12-month notice period from the date that 
 33.11  ineligibility is determined before disenrollment. 
 33.12     Sec. 24.  Laws 1997, chapter 225, article 4, section 4, as 
 33.13  amended by Laws 1999, chapter 245, article 4, section 104, is 
 33.14  amended to read: 
 33.15     Sec. 4.  [SENIOR PRESCRIPTION DRUG PROGRAM.] 
 33.16     The commissioner shall report to the legislature the 
 33.17  estimated costs of the senior prescription drug program without 
 33.18  funding caps.  The report shall be included as part of the 
 33.19  November and February forecasts. 
 33.20     The commissioner of finance shall annually reimburse the 
 33.21  general fund with health care access funds for the estimated 
 33.22  increased costs in the QMB/SLMB program directly associated with 
 33.23  the senior prescription drug program.  This reimbursement shall 
 33.24  sunset June 30, 2001. 
 33.25     Sec. 25.  [AMENDMENT.] 
 33.26     By June 1, 2000, the commissioner of human services shall 
 33.27  seek an amendment to the state Medicaid plan to permit 
 33.28  implementation of section 12 (252.461). 
 33.29     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 33.30  following final enactment. 
 33.31     Sec. 26.  [INFORMATION ON PRESCRIPTION DRUG PATIENT 
 33.32  ASSISTANCE PROGRAMS.] 
 33.33     The commissioner of human services must work with the board 
 33.34  of medical practice and the Pharmaceutical Research and 
 33.35  Manufacturers of America (PhRMA) to develop a strategy to 
 33.36  provide information on prescription drug patient assistance 
 34.1   programs offered by member companies of PhRMA to all physicians 
 34.2   in the state.  Any strategy developed must provide physicians 
 34.3   with regular updates on prescription drug patient assistance 
 34.4   programs and be implemented without cost to physicians or the 
 34.5   state. 
 34.6      Sec. 27.  [TASK FORCE EXTENDED; REPORT.] 
 34.7      The day training and habilitation task force established 
 34.8   under Laws 1999, chapter 152, shall be extended to June 15, 
 34.9   2001.  The task force shall present a report recommending a new 
 34.10  payment rate schedule for day training and habilitation services 
 34.11  to the legislature by January 15, 2001. 
 34.12     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 34.13  following final enactment. 
 34.14     Sec. 28.  [RESPITE CARE FOR FAMILY ADULT FOSTER CARE 
 34.15  PROVIDERS.] 
 34.16     The commissioner of human services, in consultation with 
 34.17  affected groups, including counties, family adult foster care 
 34.18  providers, guardians and family members, and advocacy agencies, 
 34.19  shall develop legislative proposals, including cost projections, 
 34.20  to provide 30 days of respite care per year for family adult 
 34.21  foster care providers.  The proposals must include funding 
 34.22  options that rely upon federal and state funding.  The 
 34.23  commissioner shall provide the legislative proposals and cost 
 34.24  projections to the chairs of the house health and human services 
 34.25  policy committee, the house health and human services finance 
 34.26  committee, the senate health and family security policy 
 34.27  committee, and the senate health and family security budget 
 34.28  division, by December 1, 2000. 
 34.29     Sec. 29.  [INSTRUCTION TO REVISOR.] 
 34.30     The revisor of statutes shall change the phrase "senior 
 34.31  citizen drug program" wherever it appears in the next edition of 
 34.32  Minnesota Statutes and Minnesota Rules to "prescription drug 
 34.33  program." 
 34.34                             ARTICLE 3 
 34.35             COMPLEMENTARY AND ALTERNATIVE HEALTH CARE 
 34.36                       FREEDOM OF ACCESS ACT
 35.1      Section 1.  Minnesota Statutes 1999 Supplement, section 
 35.2   13.99, is amended by adding a subdivision to read: 
 35.3      Subd. 42c.  [UNLICENSED COMPLEMENTARY AND ALTERNATIVE 
 35.4   HEALTH CARE PRACTITIONERS AND CLIENTS.] Data obtained by the 
 35.5   commissioner of health on unlicensed complementary and 
 35.6   alternative health care practitioners and clients are classified 
 35.7   under sections 146A.06 and 146A.08. 
 35.8      Sec. 2.  [146A.01] [DEFINITIONS.] 
 35.9      Subdivision 1.  [TERMS.] As used in this chapter, the 
 35.10  following terms have the meanings given them. 
 35.11     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
 35.12  commissioner of health or the commissioner's designee. 
 35.13     Subd. 3.  [COMPLEMENTARY AND ALTERNATIVE HEALTH CARE 
 35.14  CLIENT.] "Complementary and alternative health care client" 
 35.15  means an individual who receives services from an unlicensed 
 35.16  complementary and alternative health care practitioner. 
 35.17     Subd. 4.  [COMPLEMENTARY AND ALTERNATIVE HEALTH CARE 
 35.18  PRACTICES.] (a) "Complementary and alternative health care 
 35.19  practices" means the broad domain of complementary and 
 35.20  alternative healing methods and treatments, including but not 
 35.21  limited to:  (1) acupressure; (2) anthroposophy; (3) aroma 
 35.22  therapy; (4) ayurveda; (5) cranial sacral therapy; (6) 
 35.23  culturally traditional healing practices; (7) detoxification 
 35.24  practices and therapies; (8) energetic healing; (9) polarity 
 35.25  therapy; (10) folk practices; (11) healing practices utilizing 
 35.26  food, food supplements, nutrients, and the physical forces of 
 35.27  heat, cold, water, touch, and light; (12) Gerson therapy and 
 35.28  colostrum therapy; (13) healing touch; (14) herbology or 
 35.29  herbalism; (15) homeopathy; (16) iridology; (17) body work, 
 35.30  massage, and massage therapy; (18) meditation; (19) mind-body 
 35.31  healing practices; (20) naturopathy; (21) noninvasive 
 35.32  instrumentalities; and (22) traditional Oriental practices, such 
 35.33  as Qi Gong energy healing. 
 35.34     (b) Complementary and alternative health care practices, in 
 35.35  and of themselves, do not include surgery, x-ray radiation, 
 35.36  administering or dispensing legend drugs and controlled 
 36.1   substances, practices that invade the human body by puncture of 
 36.2   the skin, setting fractures, the use of medical devices as 
 36.3   defined in section 147A.01, any practice included in the 
 36.4   practice of dentistry as defined in section 150A.05, subdivision 
 36.5   1, or the manipulation or adjustment of articulations of joints 
 36.6   or the spine as described in section 146.23 or 148.01. 
 36.7      (c) Complementary and alternative health care practices do 
 36.8   not include practices that are permitted under section 147.09, 
 36.9   clause (11), or 148.271, clause (5).  
 36.10     (d) This act does not apply to, control, prevent, or 
 36.11  restrict the practice, service, or activity of lawfully 
 36.12  marketing or distributing food products, including dietary 
 36.13  supplements as defined in the federal dietary supplement health 
 36.14  and education act, educating customers about such products, or 
 36.15  explaining the uses of such products. 
 36.16     Subd. 5.  [OFFICE OF UNLICENSED COMPLEMENTARY AND 
 36.17  ALTERNATIVE HEALTH CARE PRACTICE OR OFFICE.] "Office of 
 36.18  unlicensed complementary and alternative health care practice" 
 36.19  or "office" means the office of unlicensed complementary and 
 36.20  alternative health care practice established in section 146A.02. 
 36.21     Subd. 6.  [PATIENT-IDENTIFYING DATA.] "Patient-identifying 
 36.22  data" means data that identifies a patient directly or that 
 36.23  identifies characteristics which reasonably could uniquely 
 36.24  identify a specific patient circumstantially. 
 36.25     Subd. 7.  [ROSTER DATA.] "Roster data" means, with regard 
 36.26  to an enrollee of a health plan company or group purchaser, an 
 36.27  enrollee's name, address, telephone number, date of birth, 
 36.28  gender, and enrollment status under a group purchaser's health 
 36.29  plan.  Roster data means, with regard to a patient of a 
 36.30  provider, the patient's name, address, telephone number, date of 
 36.31  birth, gender, and date or dates treated, including, if 
 36.32  applicable, the date of admission and the date of discharge. 
 36.33     Subd. 8.  [UNLICENSED COMPLEMENTARY AND ALTERNATIVE HEALTH 
 36.34  CARE PRACTITIONER.] "Unlicensed complementary and alternative 
 36.35  health care practitioner" means a person who: 
 36.36     (1) is not licensed or registered by a health-related 
 37.1   licensing board or the commissioner of health, or does not hold 
 37.2   oneself out to the public as licensed or registered by a 
 37.3   health-related licensing board or the commissioner of health 
 37.4   when engaging in complementary and alternative health care 
 37.5   practices; 
 37.6      (2) has not had a license or registration issued by a 
 37.7   health-related licensing board or the commissioner of health 
 37.8   revoked or has not been disciplined in any manner at any time in 
 37.9   the past, unless the right to engage in complementary and 
 37.10  alternative health care practices has been established by order 
 37.11  of the commissioner of health; 
 37.12     (3) is engaging in complementary and alternative health 
 37.13  care practices; and 
 37.14     (4) is providing complementary and alternative health care 
 37.15  services for remuneration or is holding oneself out to the 
 37.16  public as a practitioner of complementary and alternative health 
 37.17  care practices. 
 37.18     Sec. 3.  [146A.02] [OFFICE OF UNLICENSED COMPLEMENTARY AND 
 37.19  ALTERNATIVE HEALTH CARE PRACTICE.] 
 37.20     Subdivision 1.  [CREATION.] The office of unlicensed 
 37.21  complementary and alternative health care practice is created in 
 37.22  the department of health to investigate complaints and take and 
 37.23  enforce disciplinary actions against all unlicensed 
 37.24  complementary and alternative health care practitioners for 
 37.25  violations of prohibited conduct, as defined in section 
 37.26  146A.08.  The office shall also serve as a clearinghouse on 
 37.27  complementary and alternative health care practices and 
 37.28  unlicensed complementary and alternative health care 
 37.29  practitioners through the dissemination of objective information 
 37.30  to consumers and through the development and performance of 
 37.31  public education activities, including outreach, regarding the 
 37.32  provision of complementary and alternative health care practices 
 37.33  and unlicensed complementary and alternative health care 
 37.34  practitioners who provide these services. 
 37.35     Subd. 2.  [RULEMAKING.] The commissioner shall adopt rules 
 37.36  necessary to implement, administer, or enforce provisions of 
 38.1   this chapter pursuant to chapter 14.  The commissioner may not 
 38.2   adopt rules that restrict or prohibit persons from engaging in 
 38.3   complementary and alternative health care practices on the basis 
 38.4   of education, training, experience, or supervision. 
 38.5      Sec. 4.  [146A.025] [MALTREATMENT OF MINORS.] 
 38.6      Nothing in this chapter shall restrict the ability of a 
 38.7   local welfare agency, local law enforcement agency, the 
 38.8   commissioner of human services, or the state to take action 
 38.9   regarding the maltreatment of minors under section 609.378 or 
 38.10  626.556.  A parent who obtains complementary and alternative 
 38.11  health care for the parent's minor child is not relieved of the 
 38.12  duty to seek necessary medical care.  A complementary or 
 38.13  alternative health care practitioner who is providing services 
 38.14  to a child who is not receiving necessary medical care must make 
 38.15  a report under section 626.556.  A complementary or alternative 
 38.16  health care provider is a mandated reporter under section 
 38.17  626.556, subdivision 3. 
 38.18     Sec. 5.  [146A.03] [REPORTING OBLIGATIONS.] 
 38.19     Subdivision 1.  [PERMISSION TO REPORT.] A person who has 
 38.20  knowledge of any conduct constituting grounds for disciplinary 
 38.21  action relating to complementary and alternative health care 
 38.22  practices under this chapter may report the violation to the 
 38.23  office. 
 38.24     Subd. 2.  [INSTITUTIONS.] A state agency, political 
 38.25  subdivision, agency of a local unit of government, private 
 38.26  agency, hospital, clinic, prepaid medical plan, or other health 
 38.27  care institution or organization located in this state shall 
 38.28  report to the office any action taken by the agency, 
 38.29  institution, or organization or any of its administrators or 
 38.30  medical or other committees to revoke, suspend, restrict, or 
 38.31  condition an unlicensed complementary and alternative health 
 38.32  care practitioner's privilege to practice or treat complementary 
 38.33  and alternative health care clients in the institution or, as 
 38.34  part of the organization, any denial of privileges or any other 
 38.35  disciplinary action for conduct that might constitute grounds 
 38.36  for disciplinary action by the office under this chapter.  The 
 39.1   institution, organization, or governmental entity shall also 
 39.2   report the resignation of any unlicensed complementary and 
 39.3   alternative health care practitioners prior to the conclusion of 
 39.4   any disciplinary action proceeding for conduct that might 
 39.5   constitute grounds for disciplinary action under this chapter or 
 39.6   prior to the commencement of formal charges but after the 
 39.7   practitioner had knowledge that formal charges were contemplated 
 39.8   or were being prepared. 
 39.9      Subd. 3.  [PROFESSIONAL SOCIETIES.] A state or local 
 39.10  professional society for unlicensed complementary and 
 39.11  alternative health care practitioners shall report to the office 
 39.12  any termination, revocation, or suspension of membership or any 
 39.13  other disciplinary action taken against an unlicensed 
 39.14  complementary and alternative health care practitioner.  If the 
 39.15  society has received a complaint that might be grounds for 
 39.16  discipline under this chapter against a member on which it has 
 39.17  not taken any disciplinary action, the society shall report the 
 39.18  complaint and the reason why it has not taken action on it or 
 39.19  shall direct the complainant to the office. 
 39.20     Subd. 4.  [LICENSED PROFESSIONALS.] A licensed health 
 39.21  professional shall report to the office personal knowledge of 
 39.22  any conduct that the licensed health professional reasonably 
 39.23  believes constitutes grounds for disciplinary action under this 
 39.24  chapter by any unlicensed complementary and alternative health 
 39.25  care practitioner, including conduct indicating that the 
 39.26  individual may be medically incompetent or may be medically or 
 39.27  physically unable to engage safely in the provision of 
 39.28  services.  If the information was obtained in the course of a 
 39.29  client relationship, the client is an unlicensed complementary 
 39.30  and alternative health care practitioner, and the treating 
 39.31  individual successfully counsels the other practitioner to limit 
 39.32  or withdraw from practice to the extent required by the 
 39.33  impairment, the office may deem this limitation of or withdrawal 
 39.34  from practice to be sufficient disciplinary action. 
 39.35     Subd. 5.  [INSURERS.] Four times each year as prescribed by 
 39.36  the commissioner, each insurer authorized to sell insurance 
 40.1   described in section 60A.06, subdivision 1, clause (13), and 
 40.2   providing professional liability insurance to unlicensed 
 40.3   complementary and alternative health care practitioners or the 
 40.4   medical joint underwriting association under chapter 62F shall 
 40.5   submit to the office a report concerning the unlicensed 
 40.6   complementary and alternative health care practitioners against 
 40.7   whom malpractice settlements or awards have been made.  The 
 40.8   response must contain at least the following information: 
 40.9      (1) the total number of malpractice settlements or awards 
 40.10  made; 
 40.11     (2) the date the malpractice settlements or awards were 
 40.12  made; 
 40.13     (3) the allegations contained in the claim or complaint 
 40.14  leading to the settlements or awards made; 
 40.15     (4) the dollar amount of each malpractice settlement or 
 40.16  award; 
 40.17     (5) the regular address of the practice of the unlicensed 
 40.18  complementary and alternative health care practitioner against 
 40.19  whom an award was made or with whom a settlement was made; and 
 40.20     (6) the name of the unlicensed complementary and 
 40.21  alternative health care practitioner against whom an award was 
 40.22  made or with whom a settlement was made. 
 40.23     The insurance company shall, in addition to the above 
 40.24  information, submit to the office any information, records, and 
 40.25  files, including clients' charts and records, it possesses that 
 40.26  tend to substantiate a charge that an unlicensed complementary 
 40.27  and alternative health care practitioner may have engaged in 
 40.28  conduct violating this chapter. 
 40.29     Subd. 6.  [COURTS.] The court administrator of district 
 40.30  court or any other court of competent jurisdiction shall report 
 40.31  to the office any judgment or other determination of the court 
 40.32  that adjudges or includes a finding that an unlicensed 
 40.33  complementary and alternative health care practitioner is 
 40.34  mentally ill, mentally incompetent, guilty of a felony, guilty 
 40.35  of a violation of federal or state narcotics laws or controlled 
 40.36  substances act, or guilty of abuse or fraud under Medicare or 
 41.1   Medicaid; or that appoints a guardian of the unlicensed 
 41.2   complementary and alternative health care practitioner under 
 41.3   sections 525.54 to 525.61 or commits an unlicensed complementary 
 41.4   and alternative health care practitioner under chapter 253B. 
 41.5      Subd. 7.  [SELF-REPORTING.] An unlicensed complementary and 
 41.6   alternative health care practitioner shall report to the office 
 41.7   any personal action that would require that a report be filed 
 41.8   with the office by any person, health care facility, business, 
 41.9   or organization pursuant to subdivisions 2 to 5.  The 
 41.10  practitioner shall also report the revocation, suspension, 
 41.11  restriction, limitation, or other disciplinary action against 
 41.12  the practitioner's license, certificate, registration, or right 
 41.13  of practice in another state or jurisdiction for offenses that 
 41.14  would be subject to disciplinary action in this state and also 
 41.15  report the filing of charges regarding the practitioner's 
 41.16  license, certificate, registration, or right of practice in 
 41.17  another state or jurisdiction. 
 41.18     Subd. 8.  [DEADLINES; FORMS.] Reports required by 
 41.19  subdivisions 2 to 7 must be submitted not later than 30 days 
 41.20  after the reporter learns of the occurrence of the reportable 
 41.21  event or transaction.  The office may provide forms for the 
 41.22  submission of reports required by this section, may require that 
 41.23  reports be submitted on the forms provided, and may adopt rules 
 41.24  necessary to ensure prompt and accurate reporting. 
 41.25     Sec. 6.  [146A.04] [IMMUNITY.] 
 41.26     Subdivision 1.  [REPORTING.] Any person other than an 
 41.27  unlicensed complementary and alternative health care 
 41.28  practitioner on whom violations or alleged violations of this 
 41.29  chapter are reported, health care facility, business, or 
 41.30  organization is immune from civil liability or criminal 
 41.31  prosecution for submitting a report to the office, for otherwise 
 41.32  reporting to the office violations or alleged violations of this 
 41.33  chapter, or for cooperating with an investigation of a report, 
 41.34  except as provided in this subdivision.  Any person who 
 41.35  knowingly or recklessly makes a false report is liable in a 
 41.36  civil suit for any damages suffered by the person or persons so 
 42.1   reported and for any punitive damages set by the court or jury.  
 42.2   An action requires clear and convincing evidence that the 
 42.3   defendant made the statement with knowledge of falsity or with 
 42.4   reckless disregard for its truth or falsity.  The report or 
 42.5   statement or any statement made in cooperation with an 
 42.6   investigation or as part of a disciplinary proceeding is 
 42.7   privileged except in an action brought under this subdivision. 
 42.8      Subd. 2.  [INVESTIGATION.] The commissioner and employees 
 42.9   of the department of health and other persons engaged in the 
 42.10  investigation of violations and in the preparation, 
 42.11  presentation, and management of and testimony pertaining to 
 42.12  charges of violations of this chapter are absolutely immune from 
 42.13  civil liability and criminal prosecution for any actions, 
 42.14  transactions, or publications in the execution of, or relating 
 42.15  to, their duties under this chapter. 
 42.16     Sec. 7.  [146A.05] [DISCIPLINARY RECORD ON JUDICIAL 
 42.17  REVIEW.] 
 42.18     Upon judicial review of any disciplinary action taken by 
 42.19  the commissioner under this chapter, the reviewing court shall 
 42.20  seal the administrative record, except for the commissioner's 
 42.21  final decision, and shall not make the administrative record 
 42.22  available to the public. 
 42.23     Sec. 8.  [146A.06] [PROFESSIONAL COOPERATION; UNLICENSED 
 42.24  PRACTITIONER.] 
 42.25     Subdivision 1.  [COOPERATION.] An unlicensed complementary 
 42.26  and alternative health care practitioner who is the subject of 
 42.27  an investigation, or who is questioned in connection with an 
 42.28  investigation, by or on behalf of the office shall cooperate 
 42.29  fully with the investigation.  Cooperation includes responding 
 42.30  fully and promptly to any question raised by or on behalf of the 
 42.31  office relating to the subject of the investigation, whether 
 42.32  tape recorded or not; providing copies of client records, as 
 42.33  reasonably requested by the office, to assist the office in its 
 42.34  investigation; and appearing at conferences or hearings 
 42.35  scheduled by the commissioner.  If the office does not have a 
 42.36  written consent from a client permitting access to the client's 
 43.1   records, the unlicensed complementary and alternative health 
 43.2   care practitioner shall delete any patient-identifying data and 
 43.3   roster data in the record before providing it to the office.  
 43.4   The office shall maintain any records obtained pursuant to this 
 43.5   section as investigative data pursuant to section 13.41.  If an 
 43.6   unlicensed complementary and alternative health care 
 43.7   practitioner refuses to give testimony or produce any documents, 
 43.8   books, records, or correspondence on the basis of the fifth 
 43.9   amendment to the Constitution of the United States, the 
 43.10  commissioner may compel the unlicensed complementary and 
 43.11  alternative health care practitioner to provide the testimony or 
 43.12  information; however, the testimony or evidence may not be used 
 43.13  against the practitioner in any criminal proceeding.  Challenges 
 43.14  to requests of the office may be brought before the appropriate 
 43.15  agency or court. 
 43.16     Subd. 2.  [CLASSIFICATION OF DATA.] The commissioner shall 
 43.17  maintain any records, other than client records, obtained as 
 43.18  part of an investigation as investigative data under section 
 43.19  13.41.  Client records are classified as private under chapter 
 43.20  13 and must be protected as such in the records of the office 
 43.21  and in any administrative or judicial proceeding unless the 
 43.22  unlicensed complementary and alternative health care client 
 43.23  authorizes the office in writing to make public the identity of 
 43.24  the client or a portion or all of the client's records. 
 43.25     Subd. 3.  [EXCHANGING INFORMATION.] (a) The office shall 
 43.26  establish internal operating procedures for: 
 43.27     (1) exchanging information with state boards; agencies, 
 43.28  including the office of ombudsman for mental health and mental 
 43.29  retardation; health-related and law enforcement facilities; 
 43.30  departments responsible for licensing health-related 
 43.31  occupations, facilities, and programs; and law enforcement 
 43.32  personnel in this and other states; and 
 43.33     (2) coordinating investigations involving matters within 
 43.34  the jurisdiction of more than one regulatory agency. 
 43.35     (b) The procedures for exchanging information must provide 
 43.36  for the forwarding to the entities described in paragraph (a), 
 44.1   clause (1), of information and evidence, including the results 
 44.2   of investigations, that are relevant to matters within the 
 44.3   regulatory jurisdiction of the organizations in paragraph (a).  
 44.4   The data have the same classification in the hands of the agency 
 44.5   receiving the data as they have in the hands of the agency 
 44.6   providing the data. 
 44.7      (c) The office shall establish procedures for exchanging 
 44.8   information with other states regarding disciplinary action 
 44.9   against unlicensed complementary and alternative health care 
 44.10  practitioners. 
 44.11     (d) The office shall forward to another governmental agency 
 44.12  any complaints received by the office that do not relate to the 
 44.13  office's jurisdiction but that relate to matters within the 
 44.14  jurisdiction of the other governmental agency.  The agency to 
 44.15  which a complaint is forwarded shall advise the office of the 
 44.16  disposition of the complaint.  A complaint or other information 
 44.17  received by another governmental agency relating to a statute or 
 44.18  rule that the office is empowered to enforce must be forwarded 
 44.19  to the office to be processed in accordance with this section. 
 44.20     (e) The office shall furnish to a person who made a 
 44.21  complaint a description of the actions of the office relating to 
 44.22  the complaint. 
 44.23     Sec. 9.  [146A.07] [PROFESSIONAL ACCOUNTABILITY.] 
 44.24     The office shall maintain and keep current a file 
 44.25  containing the reports and complaints filed against unlicensed 
 44.26  complementary and alternative health care practitioners within 
 44.27  the commissioner's jurisdiction.  Each complaint filed with the 
 44.28  office must be investigated.  If the files maintained by the 
 44.29  office show that a malpractice settlement or award has been made 
 44.30  against an unlicensed complementary and alternative health care 
 44.31  practitioner, as reported by insurers under section 146A.03, 
 44.32  subdivision 5, the commissioner may authorize a review of the 
 44.33  practitioner's practice by the staff of the office. 
 44.34     Sec. 10.  [146A.08] [PROHIBITED CONDUCT.] 
 44.35     Subdivision 1.  [PROHIBITED CONDUCT.] The commissioner may 
 44.36  impose disciplinary action as described in section 146A.09 
 45.1   against any unlicensed complementary and alternative health care 
 45.2   practitioner.  The following conduct is prohibited and is 
 45.3   grounds for disciplinary action:  
 45.4      (1) Conviction of a crime, including a finding or verdict 
 45.5   of guilt, an admission of guilt, or a no-contest plea, in any 
 45.6   court in Minnesota or any other jurisdiction in the United 
 45.7   States, reasonably related to engaging in complementary and 
 45.8   alternative health care practices.  Conviction, as used in this 
 45.9   subdivision, includes a conviction of an offense which, if 
 45.10  committed in this state, would be deemed a felony, gross 
 45.11  misdemeanor, or misdemeanor, without regard to its designation 
 45.12  elsewhere, or a criminal proceeding where a finding or verdict 
 45.13  of guilty is made or returned but the adjudication of guilt is 
 45.14  either withheld or not entered. 
 45.15     (2) Conviction of any crime against a person.  For purposes 
 45.16  of this chapter, a crime against a person means violations of 
 45.17  the following:  sections 609.185; 609.19; 609.195; 609.20; 
 45.18  609.205; 609.21; 609.215; 609.221; 609.222; 609.223; 609.224; 
 45.19  609.2242; 609.23; 609.231; 609.2325; 609.233; 609.2335; 609.235; 
 45.20  609.24; 609.245; 609.25; 609.255; 609.26, subdivision 1, clause 
 45.21  (1) or (2); 609.265; 609.342; 609.343; 609.344; 609.345; 
 45.22  609.365; 609.498, subdivision 1; 609.50, subdivision 1, clause 
 45.23  (1); 609.561; 609.562; 609.595; and 609.72, subdivision 3. 
 45.24     (3) Failure to comply with the self-reporting requirements 
 45.25  of section 146A.03, subdivision 7. 
 45.26     (4) Engaging in sexual contact with a complementary and 
 45.27  alternative health care client or former client, engaging in 
 45.28  contact that may be reasonably interpreted by a client as 
 45.29  sexual, engaging in any verbal behavior that is seductive or 
 45.30  sexually demeaning to the patient, or engaging in sexual 
 45.31  exploitation of a client or former client.  For purposes of this 
 45.32  clause, "former client" means a person who has obtained services 
 45.33  from the unlicensed complementary and alternative health care 
 45.34  practitioner within the past two years. 
 45.35     (5) Advertising that is false, fraudulent, deceptive, or 
 45.36  misleading. 
 46.1      (6) Conduct likely to deceive, defraud, or harm the public 
 46.2   or demonstrating a willful or careless disregard for the health, 
 46.3   welfare, or safety of a complementary and alternative health 
 46.4   care client; or any other practice that may create unnecessary 
 46.5   danger to any client's life, health, or safety, in any of which 
 46.6   cases, harm or the potential for harm must be recognizable and 
 46.7   not remote and proof of actual injury need not be established. 
 46.8      (7) Adjudication as mentally incompetent or as a person who 
 46.9   is dangerous to self or adjudication pursuant to chapter 253B as 
 46.10  chemically dependent, mentally ill, mentally retarded, mentally 
 46.11  ill and dangerous to the public, or as a sexual psychopathic 
 46.12  personality or sexually dangerous person. 
 46.13     (8) Inability to engage in complementary and alternative 
 46.14  health care practices with reasonable safety to complementary 
 46.15  and alternative health care clients based on but not limited to 
 46.16  illness; drunkenness; or use of drugs, narcotics, chemicals, or 
 46.17  any other type of material or as a result of any mental or 
 46.18  physical condition including deterioration through the aging 
 46.19  process or loss of motor skills. 
 46.20     (9) The habitual overindulgence in the use of or the 
 46.21  dependence on intoxicating liquors. 
 46.22     (10) Improper or unauthorized personal or other use of any 
 46.23  legend drugs as defined in chapter 151, any chemicals as defined 
 46.24  in chapter 151, or any controlled substance as defined in 
 46.25  chapter 152. 
 46.26     (11) Revealing a communication from, or relating to, a 
 46.27  complementary and alternative health care client except when 
 46.28  otherwise required or permitted by law. 
 46.29     (12) Failure to comply with a complementary and alternative 
 46.30  health care client's request made under section 144.335 or to 
 46.31  furnish a complementary and alternative health care client 
 46.32  record or report required by law. 
 46.33     (13) Splitting fees or promising to pay a portion of a fee 
 46.34  to any other professional other than for services rendered by 
 46.35  the other professional to the complementary and alternative 
 46.36  health care client. 
 47.1      (14) Engaging in abusive or fraudulent billing practices, 
 47.2   including violations of the federal Medicare and Medicaid laws 
 47.3   or state medical assistance laws. 
 47.4      (15) Failure to make reports as required by section 146A.03 
 47.5   or cooperate with an investigation of the office. 
 47.6      (16) Obtaining money, property, or services from a 
 47.7   complementary and alternative health care client, other than 
 47.8   reasonable fees for services provided to the client, through the 
 47.9   use of undue influence, harassment, duress, deception, or fraud. 
 47.10     (17) Undertaking or continuing a professional relationship 
 47.11  with a complementary and alternative health care client in which 
 47.12  the objectivity of the unlicensed complementary and alternative 
 47.13  health care practitioner would be impaired. 
 47.14     (18) Failure to provide a complementary and alternative 
 47.15  health care client with a copy of the client bill of rights or 
 47.16  violation of any provision of the client bill of rights. 
 47.17     (19) Violating any order issued by the commissioner. 
 47.18     (20) Failure to comply with any provision of sections 
 47.19  146A.01 to 146A.11 and the rules adopted under those sections. 
 47.20     (21) Failure to comply with any additional disciplinary 
 47.21  grounds established by the commissioner by rule. 
 47.22     (22) Revocation, suspension, restriction, limitation, or 
 47.23  other disciplinary action against any health care license, 
 47.24  certificate, registration, or right to practice of the 
 47.25  unlicensed complementary and alternative health care 
 47.26  practitioner in this or another state or jurisdiction for 
 47.27  offenses that would be subject to disciplinary action in this 
 47.28  state or failure to report to the office that charges regarding 
 47.29  the practitioner's license, certificate, registration, or right 
 47.30  of practice have been brought in this or another state or 
 47.31  jurisdiction unless right to practice is established by the 
 47.32  commissioner order. 
 47.33     (23) Use of the title "doctor," "Dr.," or "physician" alone 
 47.34  or in combination with any other words, letters, or insignia to 
 47.35  describe the complementary and alternative health care practices 
 47.36  the practitioner provides. 
 48.1      (24) Failure to provide a complementary and alternative 
 48.2   health care client with a recommendation that the client see a 
 48.3   health care provider who is licensed or registered by a 
 48.4   health-related licensing board or the commissioner of health, if 
 48.5   there is a reasonable likelihood that the client needs to be 
 48.6   seen by a licensed or registered health care provider. 
 48.7      Subd. 2.  [LESS CUSTOMARY APPROACH.] The fact that a 
 48.8   complementary and alternative health care practice may be a less 
 48.9   customary approach to health care shall not constitute the basis 
 48.10  of a disciplinary action per se. 
 48.11     Subd. 3.  [EVIDENCE.] In disciplinary actions alleging a 
 48.12  violation of subdivision 1, clause (1), (2), (3), or (7), a copy 
 48.13  of the judgment or proceeding under the seal of the court 
 48.14  administrator or of the administrative agency that entered the 
 48.15  same is admissible into evidence without further authentication 
 48.16  and constitutes prima facie evidence of its contents. 
 48.17     Subd. 4.  [EXAMINATION; ACCESS TO MEDICAL DATA.] (a) If the 
 48.18  commissioner has probable cause to believe that an unlicensed 
 48.19  complementary and alternative health care practitioner has 
 48.20  engaged in conduct prohibited by subdivision 1, clause (7), (8), 
 48.21  (9), or (10), the commissioner may issue an order directing the 
 48.22  practitioner to submit to a mental or physical examination or 
 48.23  chemical dependency evaluation.  For the purpose of this 
 48.24  subdivision, every unlicensed complementary and alternative 
 48.25  health care practitioner is deemed to have consented to submit 
 48.26  to a mental or physical examination or chemical dependency 
 48.27  evaluation when ordered to do so in writing by the commissioner 
 48.28  and further to have waived all objections to the admissibility 
 48.29  of the testimony or examination reports of the health care 
 48.30  provider performing the examination or evaluation on the grounds 
 48.31  that the same constitute a privileged communication.  Failure of 
 48.32  an unlicensed complementary and alternative health care 
 48.33  practitioner to submit to an examination or evaluation when 
 48.34  ordered, unless the failure was due to circumstances beyond the 
 48.35  practitioner's control, constitutes an admission that the 
 48.36  unlicensed complementary and alternative health care 
 49.1   practitioner violated subdivision 1, clause (7), (8), (9), or 
 49.2   (10), based on the factual specifications in the examination or 
 49.3   evaluation order and may result in a default and final 
 49.4   disciplinary order being entered after a contested case 
 49.5   hearing.  An unlicensed complementary and alternative health 
 49.6   care practitioner affected under this paragraph shall at 
 49.7   reasonable intervals be given an opportunity to demonstrate that 
 49.8   the practitioner can resume the provision of complementary and 
 49.9   alternative health care practices with reasonable safety to 
 49.10  clients.  In any proceeding under this paragraph, neither the 
 49.11  record of proceedings nor the orders entered by the commissioner 
 49.12  shall be used against an unlicensed complementary and 
 49.13  alternative health care practitioner in any other proceeding. 
 49.14     (b) In addition to ordering a physical or mental 
 49.15  examination or chemical dependency evaluation, the commissioner 
 49.16  may, notwithstanding section 13.42, 144.651, 595.02, or any 
 49.17  other law limiting access to medical or other health data, 
 49.18  obtain medical data and health records relating to an unlicensed 
 49.19  complementary and alternative health care practitioner without 
 49.20  the practitioner's consent if the commissioner has probable 
 49.21  cause to believe that a practitioner has engaged in conduct 
 49.22  prohibited by subdivision 1, clause (7), (8), (9), or (10).  The 
 49.23  medical data may be requested from a provider as defined in 
 49.24  section 144.335, subdivision 1, paragraph (b), an insurance 
 49.25  company, or a government agency, including the department of 
 49.26  human services.  A provider, insurance company, or government 
 49.27  agency shall comply with any written request of the commissioner 
 49.28  under this subdivision and is not liable in any action for 
 49.29  damages for releasing the data requested by the commissioner if 
 49.30  the data are released pursuant to a written request under this 
 49.31  subdivision, unless the information is false and the person or 
 49.32  organization giving the information knew or had reason to 
 49.33  believe the information was false.  Information obtained under 
 49.34  this subdivision is private data under section 13.41. 
 49.35     Sec. 11.  [146A.09] [DISCIPLINARY ACTIONS.] 
 49.36     Subdivision 1.  [FORMS OF DISCIPLINARY ACTION.] When the 
 50.1   commissioner finds that an unlicensed complementary and 
 50.2   alternative health care practitioner has violated any provision 
 50.3   of this chapter, the commissioner may take one or more of the 
 50.4   following actions, only against the individual practitioner: 
 50.5      (1) revoke the right to practice; 
 50.6      (2) suspend the right to practice; 
 50.7      (3) impose limitations or conditions on the practitioner's 
 50.8   provision of complementary and alternative health care 
 50.9   practices, impose rehabilitation requirements, or require 
 50.10  practice under supervision; 
 50.11     (4) impose a civil penalty not exceeding $10,000 for each 
 50.12  separate violation, the amount of the civil penalty to be fixed 
 50.13  so as to deprive the practitioner of any economic advantage 
 50.14  gained by reason of the violation charged or to reimburse the 
 50.15  office for all costs of the investigation and proceeding; 
 50.16     (5) censure or reprimand the practitioner; 
 50.17     (6) impose a fee on the practitioner to reimburse the 
 50.18  office for all or part of the cost of the proceedings resulting 
 50.19  in disciplinary action including, but not limited to, the amount 
 50.20  paid by the office for services from the office of 
 50.21  administrative hearings, attorney fees, court reports, 
 50.22  witnesses, reproduction of records, staff time, and expense 
 50.23  incurred by the staff of the office of unlicensed complementary 
 50.24  and alternative health care practice; or 
 50.25     (7) any other action justified by the case. 
 50.26     Subd. 2.  [DISCOVERY; SUBPOENAS.] In all matters relating 
 50.27  to the lawful activities of the office, the commissioner may 
 50.28  issue subpoenas and compel the attendance of witnesses and the 
 50.29  production of all necessary papers, books, records, documents, 
 50.30  and other evidentiary material.  Any person failing or refusing 
 50.31  to appear or testify regarding any matter about which the person 
 50.32  may be lawfully questioned or failing to produce any papers, 
 50.33  books, records, documents, or other evidentiary materials in the 
 50.34  matter to be heard, after having been required by order of the 
 50.35  commissioner or by a subpoena of the commissioner to do so may, 
 50.36  upon application to the district court in any district, be 
 51.1   ordered to comply with the order or subpoena.  The commissioner 
 51.2   may administer oaths to witnesses or take their affirmation.  
 51.3   Depositions may be taken within or without the state in the 
 51.4   manner provided by law for the taking of depositions in civil 
 51.5   actions.  A subpoena or other process may be served upon a 
 51.6   person it names anywhere within the state by any officer 
 51.7   authorized to serve subpoenas or other process in civil actions 
 51.8   in the same manner as prescribed by law for service of process 
 51.9   issued out of the district court of this state. 
 51.10     Subd. 2a.  [HEARINGS.] If the commissioner proposes to take 
 51.11  action against the practitioner as described in subdivision 1, 
 51.12  the commissioner must first notify the practitioner against whom 
 51.13  the action is proposed to be taken and provide the practitioner 
 51.14  with an opportunity to request a hearing under the contested 
 51.15  case provisions of chapter 14.  If the practitioner does not 
 51.16  request a hearing by notifying the commissioner within 30 days 
 51.17  after service of the notice of the proposed action, the 
 51.18  commissioner may proceed with the action without a hearing. 
 51.19     Subd. 3.  [REINSTATEMENT.] The commissioner may at the 
 51.20  commissioner's discretion reinstate the right to practice and 
 51.21  may impose any disciplinary measure listed under subdivision 1. 
 51.22     Subd. 4.  [TEMPORARY SUSPENSION.] In addition to any other 
 51.23  remedy provided by law, the commissioner may, acting through a 
 51.24  person to whom the commissioner has delegated this authority and 
 51.25  without a hearing, temporarily suspend the right of an 
 51.26  unlicensed complementary and alternative health care 
 51.27  practitioner to practice if the commissioner's delegate finds 
 51.28  that the practitioner has violated a statute or rule that the 
 51.29  commissioner is empowered to enforce and continued practice by 
 51.30  the practitioner would create a serious risk of harm to others.  
 51.31  The suspension is in effect upon service of a written order on 
 51.32  the practitioner specifying the statute or rule violated.  The 
 51.33  order remains in effect until the commissioner issues a final 
 51.34  order in the matter after a hearing or upon agreement between 
 51.35  the commissioner and the practitioner.  Service of the order is 
 51.36  effective if the order is served on the practitioner or counsel 
 52.1   of record personally or by first class mail.  Within ten days of 
 52.2   service of the order, the commissioner shall hold a hearing on 
 52.3   the sole issue of whether there is a reasonable basis to 
 52.4   continue, modify, or lift the suspension.  Evidence presented by 
 52.5   the office or practitioner shall be in affidavit form only.  The 
 52.6   practitioner or the counsel of record may appear for oral 
 52.7   argument.  Within five working days after the hearing, the 
 52.8   commissioner shall issue the commissioner's order and, if the 
 52.9   suspension is continued, schedule a contested case hearing 
 52.10  within 45 days after issuance of the order.  The administrative 
 52.11  law judge shall issue a report within 30 days after closing of 
 52.12  the contested case hearing record.  The commissioner shall issue 
 52.13  a final order within 30 days after receipt of that report. 
 52.14     Subd. 5.  [AUTOMATIC SUSPENSION.] The right of an 
 52.15  unlicensed complementary and alternative health care 
 52.16  practitioner to practice is automatically suspended if (1) a 
 52.17  guardian of an unlicensed complementary and alternative health 
 52.18  care practitioner is appointed by order of a court under 
 52.19  sections 525.54 to 525.61, or (2) the practitioner is committed 
 52.20  by order of a court pursuant to chapter 253B.  The right to 
 52.21  practice remains suspended until the practitioner is restored to 
 52.22  capacity by a court and, upon petition by the practitioner, the 
 52.23  suspension is terminated by the commissioner after a hearing or 
 52.24  upon agreement between the commissioner and the practitioner. 
 52.25     Sec. 12.  [146A.10] [ADDITIONAL REMEDIES.] 
 52.26     Subdivision 1.  [CEASE AND DESIST.] (a) The commissioner 
 52.27  may issue a cease and desist order to stop a person from 
 52.28  violating or threatening to violate a statute, rule, or order 
 52.29  which the office has issued or is empowered to enforce.  The 
 52.30  cease and desist order must state the reason for its issuance 
 52.31  and give notice of the person's right to request a hearing under 
 52.32  sections 14.57 to 14.62.  If, within 15 days of service of the 
 52.33  order, the subject of the order fails to request a hearing in 
 52.34  writing, the order is the final order of the commissioner and is 
 52.35  not reviewable by a court or agency. 
 52.36     (b) A hearing must be initiated by the office not later 
 53.1   than 30 days from the date of the office's receipt of a written 
 53.2   hearing request.  Within 30 days of receipt of the 
 53.3   administrative law judge's report, the commissioner shall issue 
 53.4   a final order modifying, vacating, or making permanent the cease 
 53.5   and desist order as the facts require.  The final order remains 
 53.6   in effect until modified or vacated by the commissioner. 
 53.7      (c) When a request for a stay accompanies a timely hearing 
 53.8   request, the commissioner may, in the commissioner's discretion, 
 53.9   grant the stay.  If the commissioner does not grant a requested 
 53.10  stay, the commissioner shall refer the request to the office of 
 53.11  administrative hearings within three working days of receipt of 
 53.12  the request.  Within ten days after receiving the request from 
 53.13  the commissioner, an administrative law judge shall issue a 
 53.14  recommendation to grant or deny the stay.  The commissioner 
 53.15  shall grant or deny the stay within five days of receiving the 
 53.16  administrative law judge's recommendation. 
 53.17     (d) In the event of noncompliance with a cease and desist 
 53.18  order, the commissioner may institute a proceeding in Hennepin 
 53.19  county district court to obtain injunctive relief or other 
 53.20  appropriate relief, including a civil penalty payable to the 
 53.21  office not exceeding $10,000 for each separate violation. 
 53.22     Subd. 2.  [INJUNCTIVE RELIEF.] In addition to any other 
 53.23  remedy provided by law, including the issuance of a cease and 
 53.24  desist order under subdivision 1, the commissioner may in the 
 53.25  commissioner's own name bring an action in Hennepin county 
 53.26  district court for injunctive relief to restrain an unlicensed 
 53.27  complementary and alternative health care practitioner from a 
 53.28  violation or threatened violation of any statute, rule, or order 
 53.29  which the commissioner is empowered to regulate, enforce, or 
 53.30  issue.  A temporary restraining order must be granted in the 
 53.31  proceeding if continued activity by a practitioner would create 
 53.32  a serious risk of harm to others.  The commissioner need not 
 53.33  show irreparable harm. 
 53.34     Subd. 3.  [ADDITIONAL POWERS.] The issuance of a cease and 
 53.35  desist order or injunctive relief granted under this section 
 53.36  does not relieve a practitioner from criminal prosecution by a 
 54.1   competent authority or from disciplinary action by the 
 54.2   commissioner. 
 54.3      Sec. 13.  [146A.11] [COMPLEMENTARY AND ALTERNATIVE HEALTH 
 54.4   CARE CLIENT BILL OF RIGHTS.] 
 54.5      Subdivision 1.  [SCOPE.] All unlicensed complementary and 
 54.6   alternative health care practitioners shall provide to each 
 54.7   complementary and alternative health care client prior to 
 54.8   providing treatment a written copy of the complementary and 
 54.9   alternative health care client bill of rights.  A copy must also 
 54.10  be posted in a prominent location in the office of the 
 54.11  unlicensed complementary and alternative health care 
 54.12  practitioner.  Reasonable accommodations shall be made for those 
 54.13  clients who cannot read or who have communication impairments 
 54.14  and those who do not read or speak English.  The complementary 
 54.15  and alternative health care client bill of rights shall include 
 54.16  the following: 
 54.17     (1) the name, title, business address, and telephone number 
 54.18  of the unlicensed complementary and alternative health care 
 54.19  practitioner; 
 54.20     (2) the degrees, training, experience, or other 
 54.21  qualifications of the practitioner, followed by the following 
 54.22  statement in bold print: 
 54.23     "THE STATE OF MINNESOTA HAS NOT ADOPTED ANY EDUCATIONAL AND 
 54.24  TRAINING STANDARDS FOR UNLICENSED COMPLEMENTARY AND ALTERNATIVE 
 54.25  HEALTH CARE PRACTITIONERS.  THIS STATEMENT OF CREDENTIALS IS FOR 
 54.26  INFORMATION PURPOSES ONLY. 
 54.27     The practices of an unlicensed complementary and 
 54.28  alternative health care practitioner do not constitute a 
 54.29  diagnosis from a licensed physician, chiropractor, or 
 54.30  acupuncture practitioner.  If a client desires a diagnosis from 
 54.31  a licensed physician, chiropractor, or acupuncture practitioner, 
 54.32  or services from a physician, chiropractor, nurse, osteopath, 
 54.33  physical therapist, dietitian, nutritionist, acupuncture 
 54.34  practitioner, athletic trainer, or any other type of health care 
 54.35  provider, the client may seek such services at any time."; 
 54.36     (3) the name, business address, and telephone number of the 
 55.1   practitioner's supervisor, if any; 
 55.2      (4) notice that a complementary and alternative health care 
 55.3   client has the right to file a complaint with the practitioner's 
 55.4   supervisor, if any, and the procedure for filing complaints; 
 55.5      (5) the name, address, and telephone number of the office 
 55.6   of unlicensed complementary and alternative health care practice 
 55.7   and notice that a client may file complaints with the office; 
 55.8      (6) the practitioner's fees per unit of service, the 
 55.9   practitioner's method of billing for such fees, the names of any 
 55.10  insurance companies that have agreed to reimburse the 
 55.11  practitioner, or health maintenance organizations with whom the 
 55.12  practitioner contracts to provide service, whether the 
 55.13  practitioner accepts Medicare, medical assistance, or general 
 55.14  assistance medical care, and whether the practitioner is willing 
 55.15  to accept partial payment, or to waive payment, and in what 
 55.16  circumstances; 
 55.17     (7) a statement that the client has a right to reasonable 
 55.18  notice of changes in services or charges; 
 55.19     (8) a brief summary, in plain language, of the theoretical 
 55.20  approach used by the practitioner in treating patients; 
 55.21     (9) notice that the client has a right to complete and 
 55.22  current information concerning the practitioner's assessment and 
 55.23  recommended course of treatment, including the expected duration 
 55.24  of treatment; 
 55.25     (10) a statement that clients may expect courteous 
 55.26  treatment and to be free from verbal, physical, or sexual abuse 
 55.27  by the practitioner; 
 55.28     (11) a statement that client records and transactions with 
 55.29  the practitioner are confidential, unless release of these 
 55.30  records is authorized in writing by the client, or otherwise 
 55.31  provided by law; 
 55.32     (12) a statement of the client's right to be allowed access 
 55.33  to records and written information from records in accordance 
 55.34  with section 144.335; 
 55.35     (13) a statement that other services may be available in 
 55.36  the community, including where information concerning services 
 56.1   is available; 
 56.2      (14) a statement that the client has the right to choose 
 56.3   freely among available practitioners and to change practitioners 
 56.4   after services have begun, within the limits of health 
 56.5   insurance, medical assistance, or other health programs; 
 56.6      (15) a statement that the client has a right to coordinated 
 56.7   transfer when there will be a change in the provider of 
 56.8   services; 
 56.9      (16) a statement that the client may refuse services or 
 56.10  treatment, unless otherwise provided by law; and 
 56.11     (17) a statement that the client may assert the client's 
 56.12  rights without retaliation. 
 56.13     Subd. 2.  [ACKNOWLEDGMENT BY CLIENT.] Prior to the 
 56.14  provision of any service, a complementary and alternative health 
 56.15  care client must sign a written statement attesting that the 
 56.16  client has received the complementary and alternative health 
 56.17  care client bill of rights. 
 56.18     Sec. 14.  Minnesota Statutes 1999 Supplement, section 
 56.19  147.09, is amended to read: 
 56.20     147.09 [EXEMPTIONS.] 
 56.21     Section 147.081 does not apply to, control, prevent or 
 56.22  restrict the practice, service, or activities of:  
 56.23     (1) A person who is a commissioned medical officer of, a 
 56.24  member of, or employed by, the armed forces of the United 
 56.25  States, the United States Public Health Service, the Veterans 
 56.26  Administration, any federal institution or any federal agency 
 56.27  while engaged in the performance of official duties within this 
 56.28  state, if the person is licensed elsewhere.  
 56.29     (2) A licensed physician from a state or country who is in 
 56.30  actual consultation here.  
 56.31     (3) A licensed or registered physician who treats the 
 56.32  physician's home state patients or other participating patients 
 56.33  while the physicians and those patients are participating 
 56.34  together in outdoor recreation in this state as defined by 
 56.35  section 86A.03, subdivision 3.  A physician shall first register 
 56.36  with the board on a form developed by the board for that 
 57.1   purpose.  The board shall not be required to promulgate the 
 57.2   contents of that form by rule.  No fee shall be charged for this 
 57.3   registration.  
 57.4      (4) A student practicing under the direct supervision of a 
 57.5   preceptor while the student is enrolled in and regularly 
 57.6   attending a recognized medical school.  
 57.7      (5) A student who is in continuing training and performing 
 57.8   the duties of an intern or resident or engaged in postgraduate 
 57.9   work considered by the board to be the equivalent of an 
 57.10  internship or residency in any hospital or institution approved 
 57.11  for training by the board, provided the student has a residency 
 57.12  permit issued by the board under section 147.0391. 
 57.13     (6) A person employed in a scientific, sanitary, or 
 57.14  teaching capacity by the state university, the department of 
 57.15  children, families, and learning, or by any public or private 
 57.16  school, college, or other bona fide educational institution, a 
 57.17  nonprofit organization, which has tax-exempt status in 
 57.18  accordance with the Internal Revenue Code, section 501(c)(3), 
 57.19  and is organized and operated primarily for the purpose of 
 57.20  conducting scientific research directed towards discovering the 
 57.21  causes of and cures for human diseases, or the state department 
 57.22  of health, whose duties are entirely of a research, public 
 57.23  health, or educational character, while engaged in such duties; 
 57.24  provided that if the research includes the study of humans, such 
 57.25  research shall be conducted under the supervision of one or more 
 57.26  physicians licensed under this chapter. 
 57.27     (7) Physician's assistants registered in this state.  
 57.28     (8) A doctor of osteopathy duly licensed by the state board 
 57.29  of osteopathy under Minnesota Statutes 1961, sections 148.11 to 
 57.30  148.16, prior to May 1, 1963, who has not been granted a license 
 57.31  to practice medicine in accordance with this chapter provided 
 57.32  that the doctor confines activities within the scope of the 
 57.33  license. 
 57.34     (9) Any person licensed by a health related licensing 
 57.35  board, as defined in section 214.01, subdivision 2, or 
 57.36  registered by the commissioner of health pursuant to section 
 58.1   214.13, including psychological practitioners with respect to 
 58.2   the use of hypnosis; provided that the person confines 
 58.3   activities within the scope of the license.  
 58.4      (10) A person who practices ritual circumcision pursuant to 
 58.5   the requirements or tenets of any established religion. 
 58.6      (11) A Christian Scientist or other person who endeavors to 
 58.7   prevent or cure disease or suffering exclusively by mental or 
 58.8   spiritual means or by prayer. 
 58.9      (12) A physician licensed to practice medicine in another 
 58.10  state who is in this state for the sole purpose of providing 
 58.11  medical services at a competitive athletic event.  The physician 
 58.12  may practice medicine only on participants in the athletic 
 58.13  event.  A physician shall first register with the board on a 
 58.14  form developed by the board for that purpose.  The board shall 
 58.15  not be required to adopt the contents of the form by rule.  The 
 58.16  physician shall provide evidence satisfactory to the board of a 
 58.17  current unrestricted license in another state.  The board shall 
 58.18  charge a fee of $50 for the registration.  
 58.19     (13) A psychologist licensed under section 148.907 or a 
 58.20  social worker licensed under section 148B.21 who uses or 
 58.21  supervises the use of a penile or vaginal plethysmograph in 
 58.22  assessing and treating individuals suspected of engaging in 
 58.23  aberrant sexual behavior and sex offenders. 
 58.24     (14) Any person issued a training course certificate or 
 58.25  credentialed by the emergency medical services regulatory board 
 58.26  established in chapter 144E, provided the person confines 
 58.27  activities within the scope of training at the certified or 
 58.28  credentialed level. 
 58.29     (15) An unlicensed complementary and alternative health 
 58.30  care practitioner practicing according to chapter 146A. 
 58.31     Sec. 15.  Minnesota Statutes 1999 Supplement, section 
 58.32  214.01, subdivision 2, is amended to read: 
 58.33     Subd. 2.  [HEALTH-RELATED LICENSING BOARD.] "Health-related 
 58.34  licensing board" means the board of examiners of nursing home 
 58.35  administrators established pursuant to section 144A.19, the 
 58.36  office of unlicensed complementary and alternative health care 
 59.1   practice established pursuant to section 146A.02, the board of 
 59.2   medical practice created pursuant to section 147.01, the board 
 59.3   of nursing created pursuant to section 148.181, the board of 
 59.4   chiropractic examiners established pursuant to section 148.02, 
 59.5   the board of optometry established pursuant to section 148.52, 
 59.6   the board of physical therapy established pursuant to section 
 59.7   148.67, the board of psychology established pursuant to section 
 59.8   148.90, the board of social work pursuant to section 148B.19, 
 59.9   the board of marriage and family therapy pursuant to section 
 59.10  148B.30, the office of mental health practice established 
 59.11  pursuant to section 148B.61, the alcohol and drug counselors 
 59.12  licensing advisory council established pursuant to section 
 59.13  148C.02, the board of dietetics and nutrition practice 
 59.14  established under section 148.622, the board of dentistry 
 59.15  established pursuant to section 150A.02, the board of pharmacy 
 59.16  established pursuant to section 151.02, the board of podiatric 
 59.17  medicine established pursuant to section 153.02, and the board 
 59.18  of veterinary medicine, established pursuant to section 156.01. 
 59.19     Sec. 16.  [REPORT TO THE LEGISLATURE.] 
 59.20     The commissioner of health shall report to the legislature 
 59.21  by January 1, 2003, on the number and types of complaints 
 59.22  received against unlicensed complementary and alternative health 
 59.23  care practitioners pursuant to Minnesota Statutes, chapter 146A, 
 59.24  the types of practitioners against whom complaints were filed, 
 59.25  and the locations of the practitioners, the number of 
 59.26  investigations conducted, and the number and types of 
 59.27  enforcement actions completed.  The report must be filed in 
 59.28  accordance with Minnesota Statutes, sections 3.195 and 3.197. 
 59.29     Sec. 17.  [EFFECTIVE DATE.] 
 59.30     Sections 1 to 16 are effective July 1, 2001. 
 59.31                             ARTICLE 4 
 59.32                           HUMAN SERVICES 
 59.33     Section 1.  Minnesota Statutes 1999 Supplement, section 
 59.34  119B.011, subdivision 15, is amended to read: 
 59.35     Subd. 15.  [INCOME.] "Income" means earned or unearned 
 59.36  income received by all family members, including public 
 60.1   assistance cash benefits and at-home infant care subsidy 
 60.2   payments, unless specifically excluded and child support and 
 60.3   maintenance distributed to the family under section 256.741, 
 60.4   subdivision 15.  The following are excluded from income:  funds 
 60.5   used to pay for health insurance premiums for family members, 
 60.6   Supplemental Security Income, scholarships, work-study income, 
 60.7   and grants that cover costs or reimbursement for tuition, fees, 
 60.8   books, and educational supplies; student loans for tuition, 
 60.9   fees, books, supplies, and living expenses; state and federal 
 60.10  earned income tax credits; in-kind income such as food stamps, 
 60.11  energy assistance, foster care assistance, medical assistance, 
 60.12  child care assistance, and housing subsidies; earned income of 
 60.13  full or part-time students, who have not earned a high school 
 60.14  diploma or GED high school equivalency diploma including 
 60.15  earnings from summer employment; grant awards under the family 
 60.16  subsidy program; nonrecurring lump sum income only to the extent 
 60.17  that it is earmarked and used for the purpose for which it is 
 60.18  paid; and any income assigned to the public authority according 
 60.19  to section 256.74 or 256.741. 
 60.20     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
 60.21     Sec. 2.  Minnesota Statutes 1998, section 256.01, is 
 60.22  amended by adding a subdivision to read: 
 60.23     Subd. 18.  [IMMIGRATION STATUS 
 60.24  VERIFICATIONS.] Notwithstanding any waiver of this requirement 
 60.25  by the secretary of the United States Department of Health and 
 60.26  Human Services, the commissioner shall utilize the Systematic 
 60.27  Alien Verification for Entitlements (SAVE) program to conduct 
 60.28  immigration status verifications: 
 60.29     (1) as required under United States Code, title 8, section 
 60.30  1642; 
 60.31     (2) for all applicants for food assistance benefits, 
 60.32  whether under the federal food stamp program, the MFIP or work 
 60.33  first program, or the Minnesota food assistance program; 
 60.34     (3) for all applicants for general assistance medical care, 
 60.35  except assistance for an emergency medical condition, for 
 60.36  immunization with respect to an immunizable disease, or for 
 61.1   testing and treatment of symptoms of a communicable disease; and 
 61.2      (4) for all applicants for general assistance, Minnesota 
 61.3   supplemental aid, MinnesotaCare, or group residential housing, 
 61.4   when the benefits provided by these programs would fall under 
 61.5   the definition of "federal public benefit" under United States 
 61.6   Code, title 8, section 1642, if federal funds were used to pay 
 61.7   for all or part of the benefits.  
 61.8      The commissioner shall report to the Immigration and 
 61.9   Naturalization Service all undocumented persons who have been 
 61.10  identified through application verification procedures or by the 
 61.11  self-admission of an applicant for assistance.  Reports made 
 61.12  under this subdivision must comply with the requirements of 
 61.13  section 411A of the Social Security Act, as amended, and United 
 61.14  States Code, title 8, section 1644. 
 61.15     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
 61.16     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
 61.17  256.019, is amended to read: 
 61.18     256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 
 61.19     Subdivision 1.  [RETENTION RATES.] When an assistance 
 61.20  recovery amount is recovered from any source for assistance 
 61.21  given collected and posted by a county agency under the 
 61.22  provisions governing public assistance programs including the 
 61.23  aid to families with dependent children program formerly 
 61.24  codified in sections 256.72 to 256.87, MFIP, general assistance 
 61.25  medical care, emergency assistance, general assistance, and 
 61.26  Minnesota supplemental aid, the county may keep one-half of the 
 61.27  recovery made by the county agency using any method other than 
 61.28  recoupment.  For medical assistance, if the recovery is made by 
 61.29  a county agency using any method other than recoupment, the 
 61.30  county may keep one-half of the nonfederal share of the recovery.
 61.31     This does not apply to recoveries from medical providers or 
 61.32  to recoveries begun by the department of human services' 
 61.33  surveillance and utilization review division, state hospital 
 61.34  collections unit, and the benefit recoveries division or, by the 
 61.35  attorney general's office, or child support collections.  In the 
 61.36  food stamp program, the nonfederal share of recoveries in the 
 62.1   federal tax refund offset program (FTROP) only will be divided 
 62.2   equally between the state agency and the involved county agency. 
 62.3      Subd. 2.  [RETENTION RATES FOR AFDC AND MFIP.] (a) When an 
 62.4   assistance recovery amount is collected and posted by a county 
 62.5   agency under the provisions governing the aid to families with 
 62.6   dependent children program formerly codified in 1996 in sections 
 62.7   256.72 to 256.87 or MFIP under chapter 256J, the commissioner 
 62.8   shall reimburse the county agency from the proceeds of the 
 62.9   recovery using the applicable rate specified in paragraph (b) or 
 62.10  (c). 
 62.11     (b) For recoveries of overpayments made on or before 
 62.12  September 30, 1996, from the aid to families with dependent 
 62.13  children program including the emergency assistance program, the 
 62.14  commissioner shall reimburse the county agency at a rate of 
 62.15  one-quarter of the recovery made by any method other than 
 62.16  recoupment. 
 62.17     (c) For recoveries of overpayments made after September 30, 
 62.18  1996, from the aid to families with dependent children including 
 62.19  the emergency assistance program and programs funded in whole or 
 62.20  in part by the temporary assistance to needy families program 
 62.21  under section 256J.02, subdivision 2, and recoveries of 
 62.22  nonfederally funded food assistance under section 256J.11, the 
 62.23  commissioner shall reimburse the county agency at a rate of 
 62.24  one-quarter of the recovery made by any method other than 
 62.25  recoupment. 
 62.26     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
 62.27     Sec. 4.  Minnesota Statutes 1998, section 256.741, is 
 62.28  amended by adding a subdivision to read: 
 62.29     Subd. 15.  [CHILD SUPPORT DISTRIBUTION.] The state shall 
 62.30  distribute current child support and maintenance received by the 
 62.31  state to an individual who assigns the right to that support 
 62.32  under subdivision 2, paragraph (a). 
 62.33     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
 62.34     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
 62.35  256J.02, subdivision 2, is amended to read: 
 62.36     Subd. 2.  [USE OF MONEY.] State money appropriated for 
 63.1   purposes of this section and TANF block grant money must be used 
 63.2   for: 
 63.3      (1) financial assistance to or on behalf of any minor child 
 63.4   who is a resident of this state under section 256J.12; 
 63.5      (2) employment and training services under this chapter or 
 63.6   chapter 256K; 
 63.7      (3) emergency financial assistance and services under 
 63.8   section 256J.48; 
 63.9      (4) diversionary assistance under section 256J.47; 
 63.10     (5) the health care and human services training and 
 63.11  retention program under chapter 116L, for costs associated with 
 63.12  families with children with incomes below 200 percent of the 
 63.13  federal poverty guidelines; 
 63.14     (6) the pathways program under section 116L.04, subdivision 
 63.15  1a; 
 63.16     (7) welfare-to-work extended employment services for MFIP 
 63.17  participants with severe impairment to employment as defined in 
 63.18  section 268A.15, subdivision 1a; 
 63.19     (8) the family homeless prevention and assistance program 
 63.20  under section 462A.204; 
 63.21     (9) the rent assistance for family stabilization 
 63.22  demonstration project under section 462A.205; and 
 63.23     (10) reimbursements for the federal share of child support 
 63.24  collections passed through to the custodial parent; 
 63.25     (11) programs and pilot projects under chapter 256K; and 
 63.26     (12) program administration under this chapter. 
 63.27     Sec. 6.  Minnesota Statutes 1999 Supplement, section 
 63.28  256J.08, subdivision 86, is amended to read: 
 63.29     Subd. 86.  [UNEARNED INCOME.] "Unearned income" means 
 63.30  income received by a person that does not meet the definition of 
 63.31  earned income.  Unearned income includes income from a contract 
 63.32  for deed, interest, dividends, reemployment compensation, 
 63.33  disability insurance payments, veterans benefits, pension 
 63.34  payments, return on capital investment, insurance payments or 
 63.35  settlements, severance payments, child support and maintenance 
 63.36  payments, and payments for illness or disability whether the 
 64.1   premium payments are made in whole or in part by an employer or 
 64.2   participant. 
 64.3      <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
 64.4      Sec. 7.  Minnesota Statutes 1998, section 256J.15, is 
 64.5   amended by adding a subdivision to read: 
 64.6      Subd. 3.  [ELIGIBILITY AFTER CASE CLOSURE DUE TO 
 64.7   NONCOMPLIANCE.] (a) An applicant who is a member of an 
 64.8   assistance unit whose MFIP case was closed due to noncompliance 
 64.9   under either section 256J.26, subdivision 1, paragraph (a), 
 64.10  clause (2), item (ii), or 256J.46, subdivision 1, paragraph (b), 
 64.11  clause (3), and who applies for MFIP assistance within six 
 64.12  months of the date of the case closure is considered to be a new 
 64.13  applicant unit for purposes of the property limitations under 
 64.14  section 256J.20 and the payment of assistance provisions under 
 64.15  section 256J.24, subdivision 8.  The county agency must also use 
 64.16  the initial income test under section 256J.21, subdivision 3, in 
 64.17  determining the applicant's eligibility for assistance. 
 64.18     (b) Notwithstanding section 256J.24, subdivisions 5 to 7 
 64.19  and 9, for an applicant who is eligible for MFIP under this 
 64.20  subdivision, for each of the first three months on MFIP the 
 64.21  assistance unit's grant shall be reduced by ten percent of the 
 64.22  applicable MFIP standard of need for an assistance unit of the 
 64.23  same size, with the residual amount of the grant paid to the 
 64.24  assistance unit. 
 64.25     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
 64.26     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
 64.27  256J.21, subdivision 2, is amended to read: 
 64.28     Subd. 2.  [INCOME EXCLUSIONS.] (a) The following must be 
 64.29  excluded in determining a family's available income: 
 64.30     (1) payments for basic care, difficulty of care, and 
 64.31  clothing allowances received for providing family foster care to 
 64.32  children or adults under Minnesota Rules, parts 9545.0010 to 
 64.33  9545.0260 and 9555.5050 to 9555.6265, and payments received and 
 64.34  used for care and maintenance of a third-party beneficiary who 
 64.35  is not a household member; 
 64.36     (2) reimbursements for employment training received through 
 65.1   the Job Training Partnership Act, United States Code, title 29, 
 65.2   chapter 19, sections 1501 to 1792b; 
 65.3      (3) reimbursement for out-of-pocket expenses incurred while 
 65.4   performing volunteer services, jury duty, employment, or 
 65.5   informal carpooling arrangements directly related to employment; 
 65.6      (4) all educational assistance, except the county agency 
 65.7   must count graduate student teaching assistantships, 
 65.8   fellowships, and other similar paid work as earned income and, 
 65.9   after allowing deductions for any unmet and necessary 
 65.10  educational expenses, shall count scholarships or grants awarded 
 65.11  to graduate students that do not require teaching or research as 
 65.12  unearned income; 
 65.13     (5) loans, regardless of purpose, from public or private 
 65.14  lending institutions, governmental lending institutions, or 
 65.15  governmental agencies; 
 65.16     (6) loans from private individuals, regardless of purpose, 
 65.17  provided an applicant or participant documents that the lender 
 65.18  expects repayment; 
 65.19     (7)(i) state income tax refunds; and 
 65.20     (ii) federal income tax refunds; 
 65.21     (8)(i) federal earned income credits; 
 65.22     (ii) Minnesota working family credits; 
 65.23     (iii) state homeowners and renters credits under chapter 
 65.24  290A; and 
 65.25     (iv) federal or state tax rebates; 
 65.26     (9) funds received for reimbursement, replacement, or 
 65.27  rebate of personal or real property when these payments are made 
 65.28  by public agencies, awarded by a court, solicited through public 
 65.29  appeal, or made as a grant by a federal agency, state or local 
 65.30  government, or disaster assistance organizations, subsequent to 
 65.31  a presidential declaration of disaster; 
 65.32     (10) the portion of an insurance settlement that is used to 
 65.33  pay medical, funeral, and burial expenses, or to repair or 
 65.34  replace insured property; 
 65.35     (11) reimbursements for medical expenses that cannot be 
 65.36  paid by medical assistance; 
 66.1      (12) payments by a vocational rehabilitation program 
 66.2   administered by the state under chapter 268A, except those 
 66.3   payments that are for current living expenses; 
 66.4      (13) in-kind income, including any payments directly made 
 66.5   by a third party to a provider of goods and services; 
 66.6      (14) assistance payments to correct underpayments, but only 
 66.7   for the month in which the payment is received; 
 66.8      (15) emergency assistance payments; 
 66.9      (16) funeral and cemetery payments as provided by section 
 66.10  256.935; 
 66.11     (17) nonrecurring cash gifts of $30 or less, not exceeding 
 66.12  $30 per participant in a calendar month; 
 66.13     (18) any form of energy assistance payment made through 
 66.14  Public Law Number 97-35, Low-Income Home Energy Assistance Act 
 66.15  of 1981, payments made directly to energy providers by other 
 66.16  public and private agencies, and any form of credit or rebate 
 66.17  payment issued by energy providers; 
 66.18     (19) Supplemental Security Income, including retroactive 
 66.19  payments; 
 66.20     (20) Minnesota supplemental aid, including retroactive 
 66.21  payments; 
 66.22     (21) proceeds from the sale of real or personal property; 
 66.23     (22) adoption assistance payments under section 259.67; 
 66.24     (23) state-funded family subsidy program payments made 
 66.25  under section 252.32 to help families care for children with 
 66.26  mental retardation or related conditions, consumer support grant 
 66.27  funds under section 256.476, and resources and services for a 
 66.28  disabled household member under one of the home and 
 66.29  community-based waiver services programs under chapter 256B; 
 66.30     (24) interest payments and dividends from property that is 
 66.31  not excluded from and that does not exceed the asset limit; 
 66.32     (25) rent rebates; 
 66.33     (26) income earned by a minor caregiver, minor child 
 66.34  through age 6, or a minor child who is at least a half-time 
 66.35  student in an approved elementary or secondary education 
 66.36  program; 
 67.1      (27) income earned by a caregiver under age 20 who is at 
 67.2   least a half-time student in an approved elementary or secondary 
 67.3   education program; 
 67.4      (28) MFIP child care payments under section 119B.05; 
 67.5      (29) all other payments made through MFIP to support a 
 67.6   caregiver's pursuit of greater self-support; 
 67.7      (30) income a participant receives related to shared living 
 67.8   expenses; 
 67.9      (31) reverse mortgages; 
 67.10     (32) benefits provided by the Child Nutrition Act of 1966, 
 67.11  United States Code, title 42, chapter 13A, sections 1771 to 
 67.12  1790; 
 67.13     (33) benefits provided by the women, infants, and children 
 67.14  (WIC) nutrition program, United States Code, title 42, chapter 
 67.15  13A, section 1786; 
 67.16     (34) benefits from the National School Lunch Act, United 
 67.17  States Code, title 42, chapter 13, sections 1751 to 1769e; 
 67.18     (35) relocation assistance for displaced persons under the 
 67.19  Uniform Relocation Assistance and Real Property Acquisition 
 67.20  Policies Act of 1970, United States Code, title 42, chapter 61, 
 67.21  subchapter II, section 4636, or the National Housing Act, United 
 67.22  States Code, title 12, chapter 13, sections 1701 to 1750jj; 
 67.23     (36) benefits from the Trade Act of 1974, United States 
 67.24  Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
 67.25     (37) war reparations payments to Japanese Americans and 
 67.26  Aleuts under United States Code, title 50, sections 1989 to 
 67.27  1989d; 
 67.28     (38) payments to veterans or their dependents as a result 
 67.29  of legal settlements regarding Agent Orange or other chemical 
 67.30  exposure under Public Law Number 101-239, section 10405, 
 67.31  paragraph (a)(2)(E); 
 67.32     (39) income that is otherwise specifically excluded from 
 67.33  MFIP consideration in federal law, state law, or federal 
 67.34  regulation; 
 67.35     (40) security and utility deposit refunds; 
 67.36     (41) American Indian tribal land settlements excluded under 
 68.1   Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 
 68.2   Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
 68.3   reservations and payments to members of the White Earth Band, 
 68.4   under United States Code, title 25, chapter 9, section 331, and 
 68.5   chapter 16, section 1407; 
 68.6      (42) all income of the minor parent's parents and 
 68.7   stepparents when determining the grant for the minor parent in 
 68.8   households that include a minor parent living with parents or 
 68.9   stepparents on MFIP with other children; and 
 68.10     (43) income of the minor parent's parents and stepparents 
 68.11  equal to 200 percent of the federal poverty guideline for a 
 68.12  family size not including the minor parent and the minor 
 68.13  parent's child in households that include a minor parent living 
 68.14  with parents or stepparents not on MFIP when determining the 
 68.15  grant for the minor parent.  The remainder of income is deemed 
 68.16  as specified in section 256J.37, subdivision 1b; 
 68.17     (44) payments made to children eligible for relative 
 68.18  custody assistance under section 257.85; 
 68.19     (45) vendor payments for goods and services made on behalf 
 68.20  of a client unless the client has the option of receiving the 
 68.21  payment in cash; and 
 68.22     (46) the principal portion of a contract for deed payment. 
 68.23     Sec. 9.  Minnesota Statutes 1999 Supplement, section 
 68.24  256J.26, subdivision 1, is amended to read: 
 68.25     Subdivision 1.  [PERSON CONVICTED OF DRUG OFFENSES.] (a) 
 68.26  Applicants or participants who have been convicted of a drug 
 68.27  offense committed after July 1, 1997, may, if otherwise 
 68.28  eligible, receive MFIP benefits subject to the following 
 68.29  conditions: 
 68.30     (1) Benefits for the entire assistance unit must be paid in 
 68.31  vendor form for shelter and utilities during any time the 
 68.32  applicant is part of the assistance unit. 
 68.33     (2) The convicted applicant or participant shall be subject 
 68.34  to random drug testing as a condition of continued eligibility 
 68.35  and following any positive test for an illegal controlled 
 68.36  substance is subject to the following sanctions: 
 69.1      (i) for failing a drug test the first time, the 
 69.2   participant's grant shall be reduced by ten percent of the MFIP 
 69.3   standard of need, prior to making vendor payments for shelter 
 69.4   and utility costs; or 
 69.5      (ii) for failing a drug test two or more times, the 
 69.6   residual amount of the participant's grant after making vendor 
 69.7   payments for shelter and utility costs, if any, must be reduced 
 69.8   by an amount equal to 30 percent of the MFIP standard of need; 
 69.9   or 
 69.10     (ii) for failing a drug test two times, the assistance 
 69.11  unit's MFIP case must be closed, for both the cash and food 
 69.12  portions of MFIP assistance.  This case closure must be in 
 69.13  effect for a minimum of one month.  A county may not impose a 
 69.14  case closure under this provision unless the county first 
 69.15  follows the requirements of section 256J.46, subdivision 1, 
 69.16  paragraph (e). 
 69.17     (3) A participant who fails an initial a drug test the 
 69.18  first time and is under a sanction due to other MFIP program 
 69.19  requirements is considered to have more than one occurrence of 
 69.20  noncompliance, and is subject to the applicable level of 
 69.21  sanction in clause (2)(ii) as specified under section 256J.46, 
 69.22  subdivision 1, paragraph (b). 
 69.23     (b) Applicants requesting only food stamps or participants 
 69.24  receiving only food stamps, who have been convicted of a drug 
 69.25  offense that occurred after July 1, 1997, may, if otherwise 
 69.26  eligible, receive food stamps if the convicted applicant or 
 69.27  participant is subject to random drug testing as a condition of 
 69.28  continued eligibility.  Following a positive test for an illegal 
 69.29  controlled substance, the applicant is subject to the following 
 69.30  sanctions: 
 69.31     (1) for failing a drug test the first time, food stamps 
 69.32  shall be reduced by ten percent of the applicable food stamp 
 69.33  allotment; and 
 69.34     (2) for failing a drug test two or more times, food stamps 
 69.35  shall be reduced by an amount equal to 30 percent of the 
 69.36  applicable food stamp allotment.  
 70.1      (c) For the purposes of this subdivision, "drug offense" 
 70.2   means an offense that occurred after July 1, 1997, of sections 
 70.3   152.021 to 152.025, 152.0261, or 152.096.  Drug offense also 
 70.4   means a conviction in another jurisdiction of the possession, 
 70.5   use, or distribution of a controlled substance, or conspiracy to 
 70.6   commit any of these offenses, if the offense occurred after July 
 70.7   1, 1997, and the conviction is a felony offense in that 
 70.8   jurisdiction, or in the case of New Jersey, a high misdemeanor. 
 70.9      <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
 70.10     Sec. 10.  Minnesota Statutes 1998, section 256J.32, is 
 70.11  amended by adding a subdivision to read: 
 70.12     Subd. 7a.  [REQUIREMENT TO REPORT TO IMMIGRATION AND 
 70.13  NATURALIZATION SERVICES.] Notwithstanding subdivision 7, the 
 70.14  commissioner shall report to the Immigration and Naturalization 
 70.15  Services all undocumented persons who have been identified 
 70.16  through application verification procedures or by the 
 70.17  self-admission of an applicant for assistance.  Reports made 
 70.18  under this subdivision must comply with the requirements of 
 70.19  section 411A of the Social Security Act, as amended, and United 
 70.20  States Code, title 8, section 1644. 
 70.21     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
 70.22  256J.33, subdivision 4, is amended to read: 
 70.23     Subd. 4.  [MONTHLY INCOME TEST.] A county agency must apply 
 70.24  the monthly income test retrospectively for each month of MFIP 
 70.25  eligibility.  An assistance unit is not eligible when the 
 70.26  countable income equals or exceeds the MFIP standard of need or 
 70.27  the family wage level for the assistance unit.  The income 
 70.28  applied against the monthly income test must include: 
 70.29     (1) gross earned income from employment, prior to mandatory 
 70.30  payroll deductions, voluntary payroll deductions, wage 
 70.31  authorizations, and after the disregards in section 256J.21, 
 70.32  subdivision 4, and the allocations in section 256J.36, unless 
 70.33  the employment income is specifically excluded under section 
 70.34  256J.21, subdivision 2; 
 70.35     (2) gross earned income from self-employment less 
 70.36  deductions for self-employment expenses in section 256J.37, 
 71.1   subdivision 5, but prior to any reductions for personal or 
 71.2   business state and federal income taxes, personal FICA, personal 
 71.3   health and life insurance, and after the disregards in section 
 71.4   256J.21, subdivision 4, and the allocations in section 256J.36; 
 71.5      (3) unearned income after deductions for allowable expenses 
 71.6   in section 256J.37, subdivision 9, and allocations in section 
 71.7   256J.36, unless the income has been specifically excluded in 
 71.8   section 256J.21, subdivision 2; 
 71.9      (4) gross earned income from employment as determined under 
 71.10  clause (1) which is received by a member of an assistance unit 
 71.11  who is a minor child or minor caregiver and less than a 
 71.12  half-time student; 
 71.13     (5) child support and spousal support received or 
 71.14  anticipated to be received by an assistance unit; 
 71.15     (6) the income of a parent when that parent is not included 
 71.16  in the assistance unit; 
 71.17     (7) the income of an eligible relative and spouse who seek 
 71.18  to be included in the assistance unit; and 
 71.19     (8) the unearned income of a minor child included in the 
 71.20  assistance unit. 
 71.21     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
 71.22     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
 71.23  256J.34, subdivision 1, is amended to read: 
 71.24     Subdivision 1.  [PROSPECTIVE BUDGETING.] A county agency 
 71.25  must use prospective budgeting to calculate the assistance 
 71.26  payment amount for the first two months for an applicant who has 
 71.27  not received assistance in this state for at least one payment 
 71.28  month preceding the first month of payment under a current 
 71.29  application.  Notwithstanding subdivision 3, paragraph (a), 
 71.30  clause (2), a county agency must use prospective budgeting for 
 71.31  the first two months for a person who applies to be added to an 
 71.32  assistance unit.  Prospective budgeting is not subject to 
 71.33  overpayments or underpayments unless fraud is determined under 
 71.34  section 256.98. 
 71.35     (a) The county agency must apply the income received or 
 71.36  anticipated in the first month of MFIP eligibility against the 
 72.1   need of the first month.  The county agency must apply the 
 72.2   income received or anticipated in the second month against the 
 72.3   need of the second month. 
 72.4      (b) When the assistance payment for any part of the first 
 72.5   two months is based on anticipated income, the county agency 
 72.6   must base the initial assistance payment amount on the 
 72.7   information available at the time the initial assistance payment 
 72.8   is made. 
 72.9      (c) The county agency must determine the assistance payment 
 72.10  amount for the first two months of MFIP eligibility by budgeting 
 72.11  both recurring and nonrecurring income for those two months. 
 72.12     (d) The county agency must budget the child support income 
 72.13  received or anticipated to be received by an assistance unit to 
 72.14  determine the assistance payment amount from the month of 
 72.15  application through the date in which MFIP eligibility is 
 72.16  determined and assistance is authorized.  Child support income 
 72.17  which has been budgeted to determine the assistance payment in 
 72.18  the initial two months is considered nonrecurring income.  An 
 72.19  assistance unit must forward any payment of child support to the 
 72.20  child support enforcement unit of the county agency following 
 72.21  the date in which assistance is authorized. 
 72.22     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
 72.23     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
 72.24  256J.34, subdivision 4, is amended to read: 
 72.25     Subd. 4.  [SIGNIFICANT CHANGE IN GROSS INCOME.] The county 
 72.26  agency must recalculate the assistance payment when an 
 72.27  assistance unit experiences a significant change, as defined in 
 72.28  section 256J.08, resulting in a reduction in the gross income 
 72.29  received in the payment month from the gross income received in 
 72.30  the budget month.  The county agency must issue a supplemental 
 72.31  assistance payment based on the county agency's best estimate of 
 72.32  the assistance unit's income and circumstances for the payment 
 72.33  month.  Supplemental assistance payments that result from 
 72.34  significant changes are limited to two in a 12-month period 
 72.35  regardless of the reason for the change.  Notwithstanding any 
 72.36  other statute or rule of law, supplementary assistance payments 
 73.1   shall not be made when the significant change in income is the 
 73.2   result of receipt of a lump sum, receipt of an extra paycheck, 
 73.3   business fluctuation in self-employment income, or an assistance 
 73.4   unit member's participation in a strike or other labor 
 73.5   action.  Supplementary assistance payments due to a significant 
 73.6   change in the amount of direct support received must not be made 
 73.7   after the date the assistance unit is required to forward 
 73.8   support to the child support enforcement unit under subdivision 
 73.9   1, paragraph (d). 
 73.10     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
 73.11     Sec. 14.  Minnesota Statutes 1998, section 256J.40, is 
 73.12  amended to read: 
 73.13     256J.40 [FAIR HEARINGS.] 
 73.14     Subdivision 1.  [FAIR HEARING PROCESS.] Caregivers 
 73.15  receiving a notice of intent to sanction or a notice of adverse 
 73.16  action that includes a sanction, reduction in benefits, 
 73.17  suspension of benefits, denial of benefits, or termination of 
 73.18  benefits may request a fair hearing.  A request for a fair 
 73.19  hearing must be submitted in writing to the county agency or to 
 73.20  the commissioner and must be mailed within 30 days after a 
 73.21  participant or former participant receives written notice of the 
 73.22  agency's action or within 90 days when a participant or former 
 73.23  participant shows good cause for not submitting the request 
 73.24  within 30 days.  A former participant who receives a notice of 
 73.25  adverse action due to an overpayment may appeal the adverse 
 73.26  action according to the requirements in this section.  Issues 
 73.27  that may be appealed are: 
 73.28     (1) the amount of the assistance payment; 
 73.29     (2) a suspension, reduction, denial, or termination of 
 73.30  assistance; 
 73.31     (3) the basis for an overpayment, the calculated amount of 
 73.32  an overpayment, and the level of recoupment; 
 73.33     (4) the eligibility for an assistance payment; and 
 73.34     (5) the use of protective or vendor payments under section 
 73.35  256J.39, subdivision 2, clauses (1) to (3). 
 73.36     A county agency must not reduce, suspend, or terminate 
 74.1   payment when an aggrieved participant requests a fair hearing 
 74.2   prior to the effective date of the adverse action or within ten 
 74.3   days of the mailing of the notice of adverse action, whichever 
 74.4   is later, unless the participant requests in writing not to 
 74.5   receive continued assistance pending a hearing decision.  
 74.6   Assistance issued pending a fair hearing is subject to recovery 
 74.7   under section 256J.38 when as a result of the fair hearing 
 74.8   decision the participant is determined ineligible for assistance 
 74.9   or the amount of the assistance received.  A county agency may 
 74.10  increase or reduce an assistance payment while an appeal is 
 74.11  pending when the circumstances of the participant change and are 
 74.12  not related to the issue on appeal.  The commissioner's order is 
 74.13  binding on a county agency.  No additional notice is required to 
 74.14  enforce the commissioner's order. 
 74.15     A county agency shall reimburse appellants for reasonable 
 74.16  and necessary expenses of attendance at the hearing, such as 
 74.17  child care and transportation costs and for the transportation 
 74.18  expenses of the appellant's witnesses and representatives to and 
 74.19  from the hearing.  Reasonable and necessary expenses do not 
 74.20  include legal fees.  Fair hearings must be conducted at a 
 74.21  reasonable time and date by an impartial referee employed by the 
 74.22  department.  The hearing may be conducted by telephone or at a 
 74.23  site that is readily accessible to persons with disabilities. 
 74.24     The appellant may introduce new or additional evidence 
 74.25  relevant to the issues on appeal.  Recommendations of the 
 74.26  appeals referee and decisions of the commissioner must be based 
 74.27  on evidence in the hearing record and are not limited to a 
 74.28  review of the county agency action.  
 74.29     Subd. 2.  [EXCEPTION; AUTOMATIC HEARING.] No written 
 74.30  request is required to initiate a fair hearing under subdivision 
 74.31  1 if the participant is otherwise subject to case closure due to 
 74.32  noncompliance under section 256J.46, subdivision 1, paragraph 
 74.33  (b), clause (3). 
 74.34     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
 74.35     Sec. 15.  Minnesota Statutes 1998, section 256J.45, 
 74.36  subdivision 3, is amended to read: 
 75.1      Subd. 3.  [GOOD CAUSE EXEMPTIONS FOR NOT ATTENDING 
 75.2   ORIENTATION.] (a) The county agency shall not impose the 
 75.3   sanction under section 256J.46 if it determines that the 
 75.4   participant has good cause for failing to attend orientation.  
 75.5   Good cause exists when: 
 75.6      (1) appropriate child care is not available; 
 75.7      (2) the participant is ill or injured; 
 75.8      (3) a family member is ill and needs care by the 
 75.9   participant that prevents the participant from attending 
 75.10  orientation.  For a caregiver with a child or adult in the 
 75.11  household who meets the disability or medical criteria for home 
 75.12  care services under section 256B.0627, subdivision 1, paragraph 
 75.13  (c) or a home and community-based waiver services program under 
 75.14  chapter 256B, or meets the criteria for severe emotional 
 75.15  disturbance under section 245.4871, subdivision 6, or for 
 75.16  serious and persistent mental illness under section 245.462, 
 75.17  subdivision 20, paragraph (c), good cause also exists when an 
 75.18  interruption in the provision of those services occurs which 
 75.19  prevents the participant from attending orientation; 
 75.20     (4) the caregiver is unable to secure necessary 
 75.21  transportation; 
 75.22     (5) the caregiver is in an emergency situation that 
 75.23  prevents orientation attendance; 
 75.24     (6) the orientation conflicts with the caregiver's work, 
 75.25  training, or school schedule; or 
 75.26     (7) the caregiver documents other verifiable impediments to 
 75.27  orientation attendance beyond the caregiver's control.  
 75.28     (b) Counties must work with clients to provide child care 
 75.29  and transportation necessary to ensure a caregiver has every 
 75.30  opportunity to attend orientation. 
 75.31     Sec. 16.  Minnesota Statutes 1999 Supplement, section 
 75.32  256J.46, subdivision 1, is amended to read: 
 75.33     Subdivision 1.  [SANCTIONS FOR PARTICIPANTS NOT COMPLYING 
 75.34  WITH PROGRAM REQUIREMENTS.] (a) A participant who fails without 
 75.35  good cause to comply with the requirements of this chapter, and 
 75.36  who is not subject to a sanction under subdivision 2, shall be 
 76.1   subject to a sanction as provided in this subdivision. 
 76.2      For purposes of this section, an occurrence of 
 76.3   noncompliance means a failure by a participant, without good 
 76.4   cause, to comply with the requirements of this chapter.  Each 
 76.5   month that a participant in an assistance unit fails to comply 
 76.6   with a requirement of this chapter shall be considered a 
 76.7   separate occurrence of noncompliance for which the assistance 
 76.8   unit's grant must be sanctioned as provided in this section.  In 
 76.9   applying a sanction to a two-parent assistance unit, each 
 76.10  occurrence of noncompliance by either participant shall be 
 76.11  considered a separate occurrence of noncompliance for which the 
 76.12  assistance unit is subject to sanction. 
 76.13     A sanction under this subdivision becomes effective the 
 76.14  month following the month in which a required notice is given.  
 76.15  A sanction must not be imposed when a participant comes into 
 76.16  compliance with the requirements for orientation under section 
 76.17  256J.45 or third-party liability for medical services under 
 76.18  section 256J.30, subdivision 10, prior to the effective date of 
 76.19  the sanction.  A sanction must not be imposed when a participant 
 76.20  comes into compliance with the requirements for employment and 
 76.21  training services under sections 256J.49 to 256J.72 ten days 
 76.22  prior to the effective date of the sanction.  For purposes of 
 76.23  this subdivision, each month that a participant fails to comply 
 76.24  with a requirement of this chapter shall be considered a 
 76.25  separate occurrence of noncompliance.  A participant who has had 
 76.26  one or more sanctions imposed must remain in compliance with the 
 76.27  provisions of this chapter for six months in order for a 
 76.28  subsequent occurrence of noncompliance to be considered a first 
 76.29  occurrence.  
 76.30     (b) Sanctions for noncompliance shall be imposed as follows:
 76.31     (1) For the first occurrence of noncompliance by a 
 76.32  participant in a single-parent household or by one participant 
 76.33  in a two-parent household an assistance unit, the assistance 
 76.34  unit's grant shall be reduced by ten percent of the MFIP 
 76.35  standard of need for an assistance unit of the same size with 
 76.36  the residual grant paid to the participant.  The reduction in 
 77.1   the grant amount must be in effect for a minimum of one month 
 77.2   and shall be removed in the month following the month that the 
 77.3   participant returns to compliance.  
 77.4      (2) For a second or subsequent, third, fourth, or fifth 
 77.5   occurrence of noncompliance, or when both participants in a 
 77.6   two-parent household are out of compliance at the same time, the 
 77.7   assistance unit's shelter costs shall be vendor paid up to the 
 77.8   amount of the cash portion of the MFIP grant for which 
 77.9   the participant's assistance unit is eligible.  At county 
 77.10  option, the assistance unit's utilities may also be vendor paid 
 77.11  up to the amount of the cash portion of the MFIP grant remaining 
 77.12  after vendor payment of the assistance unit's shelter costs.  
 77.13  The residual amount of the grant after vendor payment, if any, 
 77.14  must be reduced by an amount equal to 30 percent of the MFIP 
 77.15  standard of need for an assistance unit of the same size before 
 77.16  the residual grant is paid to the assistance unit.  The 
 77.17  reduction in the grant amount must be in effect for a minimum of 
 77.18  one month and shall be removed in the month following the month 
 77.19  that a the participant in a one-parent household assistance unit 
 77.20  returns to compliance.  In a two-parent household assistance 
 77.21  unit, the grant reduction must be in effect for a minimum of one 
 77.22  month and shall be removed in the month following the month both 
 77.23  participants return to compliance.  The vendor payment of 
 77.24  shelter costs and, if applicable, utilities shall be removed six 
 77.25  months after the month in which the participant or participants 
 77.26  return to compliance. 
 77.27     (3) For a sixth occurrence of noncompliance, the assistance 
 77.28  unit's MFIP case must be closed, for both the cash and food 
 77.29  portions of MFIP assistance.  This case closure must be in 
 77.30  effect for a minimum of one full month.  A county may not impose 
 77.31  a case closure under this clause before an automatic fair 
 77.32  hearing is held as required by section 256J.40, subdivision 2.  
 77.33  The hearing may only be waived in writing.  If a participant 
 77.34  waives the right to this hearing, or the participant or the 
 77.35  participant's representative fails to appear at the hearing, the 
 77.36  case closure must be imposed. 
 78.1      (c) No later than during the second month that Before a 
 78.2   sanction under paragraph (b), clause (2), is in effect due to 
 78.3   noncompliance with employment services (1), may be imposed, the 
 78.4   participant's case file must be reviewed to determine if: job 
 78.5   counselor must initiate personal contact with the participant by 
 78.6   attempting to have either a personal meeting or a telephone 
 78.7   conversation with the participant.  The job counselor shall 
 78.8   thoroughly review the exemption categories and good cause 
 78.9   exception categories to determine if the participant falls under 
 78.10  one or more of these categories.  The participant's case file 
 78.11  must also be reviewed by county staff or employment and training 
 78.12  service provider staff other than the participant's current job 
 78.13  counselor to determine if: 
 78.14     (i) the continued noncompliance can be explained and 
 78.15  mitigated by providing a needed preemployment activity, as 
 78.16  defined in section 256J.49, subdivision 13, clause (16); 
 78.17     (ii) the participant qualifies for a good cause exception 
 78.18  under section 256J.57; or 
 78.19     (iii) the participant qualifies for an exemption under 
 78.20  section 256J.56. 
 78.21     If the lack of an identified activity can explain the 
 78.22  noncompliance, the county must work with the participant to 
 78.23  provide the identified activity, and the county must restore the 
 78.24  participant's grant amount to the full amount for which the 
 78.25  assistance unit is eligible.  The grant must be restored 
 78.26  retroactively to the first day of the month in which the 
 78.27  participant was found to lack preemployment activities or to 
 78.28  qualify for an exemption or good cause exception. 
 78.29     If the participant is found to qualify for a good cause 
 78.30  exception or an exemption, the county must restore the 
 78.31  participant's grant to the full amount for which the assistance 
 78.32  unit is eligible.  
 78.33     (d) At the county agency's option, the provisions of this 
 78.34  paragraph may be followed in place of the provisions in 
 78.35  paragraph (e).  During the month that a sanction is in effect 
 78.36  for a second occurrence of noncompliance, the participant may be 
 79.1   offered a face-to-face intervention in the participant's home by 
 79.2   a county representative who is knowledgeable about family 
 79.3   intervention strategies.  During this intervention the 
 79.4   participant's needs and possible reasons for noncompliance must 
 79.5   be assessed, and an identification of existing resources that 
 79.6   could be used to assist the participant to return to compliance 
 79.7   must be made.  The information gathered during this intervention 
 79.8   must be reported to the participant's job counselor, along with 
 79.9   any recommendations for referrals to existing resources or 
 79.10  modifications to the activities in the participant's approved 
 79.11  plan under section 256J.52.  The county representative who 
 79.12  conducts the intervention required under this paragraph may be 
 79.13  an existing county staff person, staff from a nonprofit agency, 
 79.14  or a trained paraprofessional. 
 79.15     (e) Before a sanction may be imposed under paragraph (b), 
 79.16  clause (2), for a second occurrence of noncompliance, the 
 79.17  participant's case must be reviewed by the county agency.  If 
 79.18  this review confirms that the sanction process under this 
 79.19  subdivision has been appropriately implemented, the county must 
 79.20  attempt to contact the participant, through a written notice and 
 79.21  by telephone, to offer a face-to-face meeting with county staff 
 79.22  or employment and training service provider staff, unless the 
 79.23  participant received a face-to-face meeting as part of the 
 79.24  personal contact and case file review provisions under paragraph 
 79.25  (c).  If the participant received a face-to-face meeting under 
 79.26  paragraph (c), the county must meet the requirements in this 
 79.27  paragraph as a case file review, but no additional face-to-face 
 79.28  meeting with the participant is required. 
 79.29     If the participant does not respond to the written notice 
 79.30  and cannot be reached by phone, a county representative must 
 79.31  attempt to visit the participant at the participant's home 
 79.32  before imposing the sanction under paragraph (b), clause (2). 
 79.33     The face-to-face meeting must be conducted by staff other 
 79.34  than the participant's current job counselor.  At this meeting 
 79.35  the participant's plan and the continued noncompliance must be 
 79.36  reviewed, and the staff must: 
 80.1      (1) identify the specific requirements the participant is 
 80.2   not complying with and what the participant must do to comply; 
 80.3      (2) determine if the participant qualifies for a good cause 
 80.4   exception under section 256J.57; 
 80.5      (3) determine if the participant qualifies for an exemption 
 80.6   under section 256J.56; 
 80.7      (4) seek to determine the appropriateness of the activities 
 80.8   in the participant's plan; 
 80.9      (5) explain what will happen if the participant continues 
 80.10  to remain out of compliance with program requirements; 
 80.11     (6) identify other resources that may be available to meet 
 80.12  the needs of the participant's family; and 
 80.13     (7) inform the participant of the right to appeal the 
 80.14  sanction under section 256J.40, subdivision 1.  
 80.15     All contacts with the participant and attempts to contact 
 80.16  the participant regarding the sanction must be documented in the 
 80.17  case file.  If the participant is found to qualify for a good 
 80.18  cause exception or an exemption, the county must restore the 
 80.19  participant's grant to the full amount for which the assistance 
 80.20  unit is eligible.  If one or more of the activities in the 
 80.21  participant's plan is no longer appropriate, the plan must be 
 80.22  revised to reflect that determination, and the sanction under 
 80.23  paragraph (b), clause (2), may not be imposed.  If the 
 80.24  participant does not respond to the county's efforts to 
 80.25  establish face-to-face contact, or when contacted chooses not to 
 80.26  comply with the program's requirements and does not qualify for 
 80.27  a good cause exception or an exemption, the sanction under 
 80.28  paragraph (b), clause (2), must be imposed.  
 80.29     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
 80.30     Sec. 17.  Minnesota Statutes 1999 Supplement, section 
 80.31  256J.46, subdivision 2, is amended to read: 
 80.32     Subd. 2.  [SANCTIONS FOR REFUSAL TO COOPERATE WITH SUPPORT 
 80.33  REQUIREMENTS.] An MFIP caregiver whose only noncompliance with a 
 80.34  program requirement is due to noncooperation with support 
 80.35  requirements under section 256.741 is not subject to sanction as 
 80.36  specified in subdivision 1.  The grant of an MFIP caregiver who 
 81.1   refuses to cooperate, as determined by the child support 
 81.2   enforcement agency, with support requirements under section 
 81.3   256.741, shall be subject to sanction as specified in this 
 81.4   subdivision.  The assistance unit's grant must be reduced by 25 
 81.5   percent of the applicable MFIP standard of need.  The residual 
 81.6   amount of the grant, if any, must be paid to the caregiver.  A 
 81.7   sanction under this subdivision becomes effective the first 
 81.8   month following the month in which a required notice is given.  
 81.9   A sanction must not be imposed when a caregiver comes into 
 81.10  compliance with the requirements under section 256.741 prior to 
 81.11  the effective date of the sanction.  The sanction shall be 
 81.12  removed in the month following the month that the caregiver 
 81.13  cooperates with the support requirements.  Each month that an 
 81.14  MFIP caregiver fails to comply with the requirements of section 
 81.15  256.741 must be considered a separate occurrence of 
 81.16  noncompliance.  An MFIP caregiver who has had one or more 
 81.17  sanctions imposed under this subdivision must remain in 
 81.18  compliance with the requirements of section 256.741 for six 
 81.19  months in order for a subsequent sanction to be considered a 
 81.20  first occurrence. 
 81.21     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
 81.22     Sec. 18.  Minnesota Statutes 1999 Supplement, section 
 81.23  256J.46, subdivision 2a, is amended to read: 
 81.24     Subd. 2a.  [DUAL SANCTIONS.] (a) Notwithstanding the 
 81.25  provisions of subdivisions 1 and 2, for a participant subject to 
 81.26  a sanction for refusal to comply with child support requirements 
 81.27  under subdivision 2 and subject to a concurrent sanction for 
 81.28  refusal to cooperate with other program requirements under 
 81.29  subdivision 1, sanctions shall be imposed in the manner 
 81.30  prescribed in this subdivision. 
 81.31     A participant who has had one or more sanctions imposed 
 81.32  under this subdivision must remain in compliance with the 
 81.33  provisions of this chapter for six months in order for a 
 81.34  subsequent occurrence of noncompliance to be considered a first 
 81.35  occurrence.  Any vendor payment of shelter costs or utilities 
 81.36  under this subdivision must remain in effect for six months 
 82.1   after the month in which the participant is no longer subject to 
 82.2   sanction under subdivision 1. 
 82.3      (b) If the participant was subject to sanction for: 
 82.4      (i) noncompliance under subdivision 1 before being subject 
 82.5   to sanction for noncooperation under subdivision 2; or 
 82.6      (ii) noncooperation under subdivision 2 before being 
 82.7   subject to sanction for noncompliance under subdivision 1; 
 82.8   under either subdivision 1 or 2 before being subject to sanction 
 82.9   under the other of those subdivisions, the participant shall be 
 82.10  sanctioned as provided in subdivision 1, paragraph (b), clause 
 82.11  clauses (2) and (3), and the requirement that the county conduct 
 82.12  a review as specified in subdivision 1, paragraph (c), remains 
 82.13  in effect. 
 82.14     (c) A participant who first becomes subject to sanction 
 82.15  under both subdivisions 1 and 2 in the same month is subject to 
 82.16  sanction as follows: 
 82.17     (i) in the first month of noncompliance and noncooperation, 
 82.18  the participant's grant must be reduced by 25 percent of the 
 82.19  applicable MFIP standard of need, with any residual amount paid 
 82.20  to the participant; 
 82.21     (ii) in the second and subsequent months of noncompliance 
 82.22  and noncooperation, the participant shall be sanctioned as 
 82.23  provided in subdivision 1, paragraph (b), clause clauses (2) and 
 82.24  (3). 
 82.25     The requirement that the county conduct a review as 
 82.26  specified in subdivision 1, paragraph (c), remains in effect. 
 82.27     (d) A participant remains subject to sanction under 
 82.28  subdivision 2 if the participant: 
 82.29     (i) returns to compliance and is no longer subject to 
 82.30  sanction under subdivision 1; or 
 82.31     (ii) has the sanction under subdivision 1, paragraph (b), 
 82.32  removed upon completion of the review under subdivision 1, 
 82.33  paragraph (c). 
 82.34     A participant remains subject to sanction under subdivision 
 82.35  1, paragraph (b), if the participant cooperates and is no longer 
 82.36  subject to sanction under subdivision 2. 
 83.1      <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
 83.2      Sec. 19.  Minnesota Statutes 1998, section 256J.46, is 
 83.3   amended by adding a subdivision to read: 
 83.4      Subd. 3.  [SANCTION STATUS AFTER CASE CLOSURE DUE TO 
 83.5   NONCOMPLIANCE.] An applicant whose MFIP case was closed due to 
 83.6   noncompliance under subdivision 1, paragraph (b), clause (3), 
 83.7   who applies for MFIP assistance within six months of the date of 
 83.8   the case closure, and who is determined to be eligible for MFIP 
 83.9   assistance, is considered to have a first occurrence of 
 83.10  noncompliance under subdivision 1.  The applicant must remain in 
 83.11  compliance with the provisions of this chapter in order for a 
 83.12  subsequent occurrence of noncompliance to be considered a first 
 83.13  occurrence. 
 83.14     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
 83.15     Sec. 20.  Minnesota Statutes 1998, section 256J.47, 
 83.16  subdivision 1, is amended to read: 
 83.17     Subdivision 1.  [ELIGIBILITY.] A family is eligible to 
 83.18  receive diversionary assistance once every 36 12 months if: 
 83.19     (1) a family member has resided in this state for at least 
 83.20  30 days; 
 83.21     (2) the caregiver provides verification that the caregiver 
 83.22  has either experienced an unexpected occurrence that makes it 
 83.23  impossible to retain or obtain employment or the caregiver has a 
 83.24  temporary loss of income, which is not due to refusing to accept 
 83.25  or terminating suitable employment as defined in section 
 83.26  256J.49, without good cause under section 256J.57, resulting in 
 83.27  an emergency; 
 83.28     (3) the caregiver is at risk of MFIP-S eligibility if 
 83.29  diversionary assistance is not provided and household income is 
 83.30  below 140 200 percent of the federal poverty guidelines; and 
 83.31     (4) the diversionary assistance will resolve the emergency 
 83.32  and divert the family from applying for MFIP-S. 
 83.33     For purposes of this section, diversionary assistance means 
 83.34  a one-time lump-sum payment to an individual or third-party 
 83.35  vendor to prevent long-term receipt of public assistance. 
 83.36     Sec. 21.  Minnesota Statutes 1998, section 256J.49, 
 84.1   subdivision 13, is amended to read: 
 84.2      Subd. 13.  [WORK ACTIVITY.] "Work activity" means any 
 84.3   activity in a participant's approved employment plan that is 
 84.4   tied to the participant's employment goal.  For purposes of the 
 84.5   MFIP-S MFIP program, any activity that is included in a 
 84.6   participant's approved employment plan meets the definition of 
 84.7   work activity as counted under the federal participation 
 84.8   standards.  Work activity includes, but is not limited to: 
 84.9      (1) unsubsidized employment; 
 84.10     (2) subsidized private sector or public sector employment, 
 84.11  including grant diversion as specified in section 256J.69; 
 84.12     (3) work experience, including CWEP as specified in section 
 84.13  256J.67, and including work associated with the refurbishing of 
 84.14  publicly assisted housing if sufficient private sector 
 84.15  employment is not available; 
 84.16     (4) on-the-job training as specified in section 256J.66; 
 84.17     (5) job search, either supervised or unsupervised; 
 84.18     (6) job readiness assistance; 
 84.19     (7) job clubs, including job search workshops; 
 84.20     (8) job placement; 
 84.21     (9) job development; 
 84.22     (10) job-related counseling; 
 84.23     (11) job coaching; 
 84.24     (12) job retention services; 
 84.25     (13) job-specific training or education; 
 84.26     (14) job skills training directly related to employment; 
 84.27     (15) the self-employment investment demonstration (SEID), 
 84.28  as specified in section 256J.65; 
 84.29     (16) preemployment activities, based on availability and 
 84.30  resources, such as volunteer work, literacy programs and related 
 84.31  activities, citizenship and classes, English as a second 
 84.32  language (ESL) classes as limited by the provisions of section 
 84.33  256J.52, subdivisions 3, paragraph (d), and 5, paragraph (c), or 
 84.34  participation in dislocated worker services, chemical dependency 
 84.35  treatment, mental health services, peer group networks, 
 84.36  displaced homemaker programs, strength-based resiliency 
 85.1   training, parenting education, or other programs designed to 
 85.2   help families reach their employment goals and enhance their 
 85.3   ability to care for their children; 
 85.4      (17) community service programs; 
 85.5      (18) vocational educational training or educational 
 85.6   programs that can reasonably be expected to lead to employment, 
 85.7   as limited by the provisions of section 256J.53; 
 85.8      (19) apprenticeships; 
 85.9      (20) satisfactory attendance in general educational 
 85.10  development diploma classes or an adult diploma program; 
 85.11     (21) satisfactory attendance at secondary school, if the 
 85.12  participant has not received a high school diploma; 
 85.13     (22) adult basic education classes; 
 85.14     (23) internships; 
 85.15     (24) bilingual employment and training services; 
 85.16     (25) providing child care services to a participant who is 
 85.17  working in a community service program; and 
 85.18     (26) activities included in a safety plan that is developed 
 85.19  under section 256J.52, subdivision 6. 
 85.20     Sec. 22.  Minnesota Statutes 1998, section 256J.50, 
 85.21  subdivision 5, is amended to read: 
 85.22     Subd. 5.  [PARTICIPATION REQUIREMENTS FOR SINGLE-PARENT AND 
 85.23  TWO-PARENT ALL CASES.] (a) A county must establish a uniform 
 85.24  schedule for requiring participation by single parents.  
 85.25  Mandatory participation must be required within six months of 
 85.26  eligibility for cash assistance.  For two-parent all cases, 
 85.27  participation is required concurrent with the receipt of MFIP-S 
 85.28  MFIP cash assistance. 
 85.29     (b) Beginning January 1, 1998, with the exception of 
 85.30  caregivers required to attend high school under the provisions 
 85.31  of section 256J.54, subdivision 5, MFIP caregivers, upon 
 85.32  completion of the secondary assessment, must develop an 
 85.33  employment plan and participate in work activities. 
 85.34     (c) Upon completion of the secondary assessment: 
 85.35     (1) In single-parent families with no children under six 
 85.36  years of age, the job counselor and the caregiver must develop 
 86.1   an employment plan that includes 20 to 35 hours per week of work 
 86.2   activities for the period January 1, 1998, to September 30, 
 86.3   1998; 25 to 35 hours of work activities per week in federal 
 86.4   fiscal year 1999; and 30 to 35 hours per week of work activities 
 86.5   in federal fiscal year 2000 and thereafter. 
 86.6      (2) In single-parent families with a child under six years 
 86.7   of age, the job counselor and the caregiver must develop an 
 86.8   employment plan that includes 20 to 35 hours per week of work 
 86.9   activities. 
 86.10     (3) In two-parent families, the job counselor and the 
 86.11  caregivers must develop employment plans which result in a 
 86.12  combined total of at least 55 hours per week of work activities. 
 86.13     Sec. 23.  Minnesota Statutes 1998, section 256J.50, 
 86.14  subdivision 7, is amended to read: 
 86.15     Subd. 7.  [LOCAL SERVICE UNIT PLAN.] (a) Each local or 
 86.16  county service unit shall prepare and submit a plan as specified 
 86.17  in section 268.88. 
 86.18     (b) The plan must include a description of how projects 
 86.19  funded under the local intervention grants for self-sufficiency 
 86.20  in section 256J.625, subdivisions 2 and 3, operate in the local 
 86.21  service unit, including: 
 86.22     (1) the target populations of hard-to-employ participants 
 86.23  and working participants in need of job retention and wage 
 86.24  advancement services, with a description of how individual 
 86.25  participant needs will be met; 
 86.26     (2) services that will be provided which may include paid 
 86.27  work experience, enhanced mental health services, outreach to 
 86.28  sanctioned families, child care for social services, child care 
 86.29  transition year set-aside, homeless and housing advocacy, and 
 86.30  transportation; 
 86.31     (3) projected expenditures by activity; 
 86.32     (4) anticipated program outcomes including the anticipated 
 86.33  impact the intervention efforts will have on performance 
 86.34  measures under section 256J.751 and on reducing the number of 
 86.35  MFIP participants expected to reach their 60-month time limit; 
 86.36  and 
 87.1      (5) a description of services that are provided or will be 
 87.2   provided to MFIP participants affected by chemical dependency, 
 87.3   mental health issues, learning disabilities, or family violence. 
 87.4      Each plan must demonstrate how the county or tribe is 
 87.5   working within its organization and with other organizations in 
 87.6   the community to serve hard-to-employ populations, including how 
 87.7   organizations in the community were engaged in planning for use 
 87.8   of these funds, services other entities will provide under the 
 87.9   plan, and whether multicounty or regional strategies are being 
 87.10  implemented as part of this plan. 
 87.11     (c) Activities and expenditures in the plan must enhance or 
 87.12  supplement MFIP activities without supplanting existing 
 87.13  activities and expenditures.  However, this paragraph does not 
 87.14  require a county to maintain either:  
 87.15     (1) its current provision of child care assistance to MFIP 
 87.16  families through the expenditure of county resources under 
 87.17  chapter 256E for social services child care assistance if funds 
 87.18  are appropriated by another law for an MFIP social services 
 87.19  child care pool; 
 87.20     (2) its current provision of transition-year child care 
 87.21  assistance through the expenditure of county resources if funds 
 87.22  are appropriated by another law for this purpose; or 
 87.23     (3) its current provision of intensive ESL programs through 
 87.24  the expenditure of county resources if funds are appropriated by 
 87.25  another law for intensive ESL grants. 
 87.26     (d) The plan required under this subdivision must be 
 87.27  approved before the local or county service unit is eligible to 
 87.28  receive funds under section 256J.625, subdivisions 2 and 3. 
 87.29     Sec. 24.  Minnesota Statutes 1999 Supplement, section 
 87.30  256J.52, subdivision 3, is amended to read: 
 87.31     Subd. 3.  [JOB SEARCH; JOB SEARCH SUPPORT PLAN.] (a) If, 
 87.32  after the initial assessment, the job counselor determines that 
 87.33  the participant possesses sufficient skills that the participant 
 87.34  is likely to succeed in obtaining suitable employment, the 
 87.35  participant must conduct job search for a period of up to eight 
 87.36  weeks, for at least 30 hours per week.  The participant must 
 88.1   accept any offer of suitable employment.  Upon agreement by the 
 88.2   job counselor and the participant, a job search support plan may 
 88.3   limit a job search to jobs that are consistent with the 
 88.4   participant's employment goal.  The job counselor and 
 88.5   participant must develop a job search support plan which 
 88.6   specifies, at a minimum:  whether the job search is to be 
 88.7   supervised or unsupervised; support services that will be 
 88.8   provided while the participant conducts job search activities; 
 88.9   the courses necessary to obtain certification or licensure, if 
 88.10  applicable, and after obtaining the license or certificate, the 
 88.11  client must comply with subdivision 5; and how frequently the 
 88.12  participant must report to the job counselor on the status of 
 88.13  the participant's job search activities.  The job search support 
 88.14  plan may also specify that the participant fulfill a specified 
 88.15  portion no more than half of the required hours of job search 
 88.16  through attending adult basic education or English as a second 
 88.17  language classes. 
 88.18     (b) During the eight-week job search period, either the job 
 88.19  counselor or the participant may request a review of the 
 88.20  participant's job search plan and progress towards obtaining 
 88.21  suitable employment.  If a review is requested by the 
 88.22  participant, the job counselor must concur that the review is 
 88.23  appropriate for the participant at that time.  If a review is 
 88.24  conducted, the job counselor may make a determination to conduct 
 88.25  a secondary assessment prior to the conclusion of the job search.
 88.26     (c) Failure to conduct the required job search, to accept 
 88.27  any offer of suitable employment, to develop or comply with a 
 88.28  job search support plan, or voluntarily quitting suitable 
 88.29  employment without good cause results in the imposition of a 
 88.30  sanction under section 256J.46.  If at the end of eight weeks 
 88.31  the participant has not obtained suitable employment, the job 
 88.32  counselor must conduct a secondary assessment of the participant 
 88.33  under subdivision 3. 
 88.34     (d) In order for an English as a second language (ESL) 
 88.35  class to be an approved work activity, a participant must be 
 88.36  below a spoken language proficiency level of SPL5 or its 
 89.1   equivalent, as measured by a nationally recognized test.  A 
 89.2   participant may not be approved for more than a total of 24 
 89.3   months of ESL activities while participating in the employment 
 89.4   and training services component of MFIP.  In approving ESL as a 
 89.5   work activity, the job counselor must give preference to 
 89.6   enrollment in an intensive ESL program, if one is available, 
 89.7   over a regular ESL program. 
 89.8      Sec. 25.  Minnesota Statutes 1999 Supplement, section 
 89.9   256J.52, subdivision 5, is amended to read: 
 89.10     Subd. 5.  [EMPLOYMENT PLAN; CONTENTS.] (a) Based on the 
 89.11  secondary assessment under subdivision 4, the job counselor and 
 89.12  the participant must develop an employment plan for the 
 89.13  participant that includes specific activities that are tied to 
 89.14  an employment goal and a plan for long-term self-sufficiency, 
 89.15  and that is designed to move the participant along the most 
 89.16  direct path to unsubsidized employment.  The employment plan 
 89.17  must list the specific steps that will be taken to obtain 
 89.18  employment and a timetable for completion of each of the steps.: 
 89.19     (1) take into consideration the participant's physical 
 89.20  capacity, skills, experience, health and safety, family 
 89.21  responsibilities, place of residence, and child care and other 
 89.22  supportive service needs; 
 89.23     (2) be based on available resources and employment 
 89.24  opportunities; 
 89.25     (3) specify the services to be provided by the employment 
 89.26  and training service provider or other providers to be utilized 
 89.27  by the participant; 
 89.28     (4) specify the work activities under section 256J.49, 
 89.29  subdivision 13, in which the participant will participate; 
 89.30     (5) specify the provision of necessary supportive services 
 89.31  such as child care and transportation assistance and skill 
 89.32  development activities; 
 89.33     (6) reflect an effort to arrange mandatory activities so 
 89.34  that those activities do not interfere with the participant's 
 89.35  access to available English as a second language classes or 
 89.36  adult basic education classes, and to the extent possible, 
 90.1   reflect the preferences of the participant; 
 90.2      (7) include a written agreement between the employment and 
 90.3   training provider and the participant that outlines a reasonable 
 90.4   schedule for completing the plan, including specific completion 
 90.5   deadlines; and 
 90.6      (8) specify the participant's long-term employment goal 
 90.7   that will lead to self-sufficiency and how the participant will 
 90.8   move to unsubsidized employment.  A participant must be 
 90.9   counseled to set realistic goals which take into account the 
 90.10  long term needs of the participant and the participant's 
 90.11  family.  Upon agreement by the job counselor and the 
 90.12  participant, the employment plan may limit a job search to jobs 
 90.13  that are consistent with the participant's employment goal. 
 90.14     (b) As part of the development of the participant's 
 90.15  employment plan, the participant shall have the option of 
 90.16  selecting from among the vendors or resources that the job 
 90.17  counselor determines will be effective in supplying one or more 
 90.18  of the services necessary to meet the employment goals specified 
 90.19  in the participant's plan. In compiling the list of vendors and 
 90.20  resources that the job counselor determines would be effective 
 90.21  in meeting the participant's employment goals, the job counselor 
 90.22  must determine that adequate financial resources are available 
 90.23  for the vendors or resources ultimately selected by the 
 90.24  participant. 
 90.25     (c) In order for an English as a second language (ESL) 
 90.26  class to be an approved work activity, a participant must be 
 90.27  below a spoken language proficiency level of SPL5 or its 
 90.28  equivalent, as measured by a nationally recognized test.  A 
 90.29  participant may not be approved for more than a total of 24 
 90.30  months of ESL activities while participating in the employment 
 90.31  and training services component of MFIP.  In approving ESL as a 
 90.32  work activity, the job counselor must give preference to 
 90.33  enrollment in an intensive ESL program, if one is available, 
 90.34  over a regular ESL program. 
 90.35     (d) The job counselor and the participant must sign the 
 90.36  developed plan to indicate agreement between the job counselor 
 91.1   and the participant on the contents of the plan. 
 91.2      Sec. 26.  Minnesota Statutes 1998, section 256J.52, is 
 91.3   amended by adding a subdivision to read: 
 91.4      Subd. 5b.  [EMPLOYMENT ACTIVITIES REQUIRED.] The job 
 91.5   counselor must ensure that, by the fourth month of participation 
 91.6   in the employment and training services component, at least half 
 91.7   of a participant's required hours of work activities are met 
 91.8   through one or a combination of the activities listed in section 
 91.9   256J.49, subdivision 13, clause (1), (2), (3), (4), (19), or 
 91.10  (23). 
 91.11     Sec. 27.  Minnesota Statutes 1999 Supplement, section 
 91.12  256J.56, is amended to read: 
 91.13     256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 
 91.14  EXEMPTIONS.] 
 91.15     (a) An MFIP caregiver is exempt from the requirements of 
 91.16  sections 256J.52 to 256J.55 if the caregiver belongs to any of 
 91.17  the following groups: 
 91.18     (1) individuals who are age 60 or older; 
 91.19     (2) individuals who are suffering from a professionally 
 91.20  certified permanent or temporary illness, injury, or incapacity 
 91.21  which is expected to continue for more than 30 days and which 
 91.22  prevents the person from obtaining or retaining employment.  
 91.23  Persons in this category with a temporary illness, injury, or 
 91.24  incapacity must be reevaluated at least quarterly; 
 91.25     (3) caregivers whose presence in the home is required 
 91.26  because of the professionally certified illness or incapacity of 
 91.27  another member in the assistance unit, a relative in the 
 91.28  household, or a foster child in the household; 
 91.29     (4) women who are pregnant, if the pregnancy has resulted 
 91.30  in a professionally certified incapacity that prevents the woman 
 91.31  from obtaining or retaining employment; 
 91.32     (5) caregivers of a child under the age of one year who 
 91.33  personally provide full-time care for the child.  This exemption 
 91.34  may be used for only 12 months in a lifetime.  In two-parent 
 91.35  households, only one parent or other relative may qualify for 
 91.36  this exemption; 
 92.1      (6) individuals who are single parents, or one parent in a 
 92.2   two-parent family, employed at least 35 hours per week; 
 92.3      (7) individuals experiencing a personal or family crisis 
 92.4   that makes them incapable of participating in the program, as 
 92.5   determined by the county agency.  If the participant does not 
 92.6   agree with the county agency's determination, the participant 
 92.7   may seek professional certification, as defined in section 
 92.8   256J.08, that the participant is incapable of participating in 
 92.9   the program. 
 92.10     Persons in this exemption category must be reevaluated 
 92.11  every 60 days; or 
 92.12     (8) second parents in two-parent families employed for 20 
 92.13  or more hours per week, provided the first parent is employed at 
 92.14  least 35 hours per week; or 
 92.15     (9) caregivers with a child or adult in the household who 
 92.16  meets the disability or medical criteria for home care services 
 92.17  under section 256B.0627, subdivision 1, paragraph (c) or a home 
 92.18  and community-based waiver services program under chapter 256B, 
 92.19  or meets the criteria for severe emotional disturbance under 
 92.20  section 245.4871, subdivision 6, or for serious and persistent 
 92.21  mental illness under section 245.462, subdivision 20, paragraph 
 92.22  (c).  Caregivers in this exemption category are presumed to be 
 92.23  prevented from obtaining or retaining employment. 
 92.24     A caregiver who is exempt under clause (5) must enroll in 
 92.25  and attend an early childhood and family education class, a 
 92.26  parenting class, or some similar activity, if available, during 
 92.27  the period of time the caregiver is exempt under this section.  
 92.28  Notwithstanding section 256J.46, failure to attend the required 
 92.29  activity shall not result in the imposition of a sanction. 
 92.30     (b) The county agency must provide employment and training 
 92.31  services to MFIP caregivers who are exempt under this section, 
 92.32  but who volunteer to participate.  Exempt volunteers may request 
 92.33  approval for any work activity under section 256J.49, 
 92.34  subdivision 13.  The hourly participation requirements for 
 92.35  nonexempt caregivers under section 256J.50, subdivision 5, do 
 92.36  not apply to exempt caregivers who volunteer to participate. 
 93.1      Sec. 28.  [256J.625] [LOCAL INTERVENTION GRANTS FOR 
 93.2   SELF-SUFFICIENCY.] 
 93.3      Subdivision 1.  [ESTABLISHMENT; GUARANTEED MINIMUM 
 93.4   ALLOCATION.] (a) The commissioner shall make grants under this 
 93.5   subdivision to assist county and tribal TANF programs to more 
 93.6   effectively serve hard-to-employ MFIP participants.  Funds 
 93.7   appropriated for local intervention grants for self-sufficiency 
 93.8   must be allocated first in amounts equal to the guaranteed 
 93.9   minimum in paragraph (b), and second according to the provisions 
 93.10  of subdivision 2.  Any remaining funds must be allocated 
 93.11  according to the formula in subdivision 3.  Counties or tribes 
 93.12  must have an approved local service unit plan under section 
 93.13  256J.50, subdivision 7, paragraph (b), in order to receive and 
 93.14  expend funds under subdivisions 2 and 3.  
 93.15     (b) Each county or tribal program shall receive a 
 93.16  guaranteed minimum annual allocation of $25,000. 
 93.17     Subd. 2.  [SET-ASIDE FUNDS.] (a) Of the funds appropriated 
 93.18  for grants under this section, after the allocation in 
 93.19  subdivision 1, paragraph (b), is made, 20 percent of the 
 93.20  remaining funds each year shall be retained by the commissioner 
 93.21  and awarded to counties or tribes whose approved plans 
 93.22  demonstrate additional need based on their identification of 
 93.23  hard-to-employ families and working participants in need of job 
 93.24  retention and wage advancement services, strong anticipated 
 93.25  outcomes for families and an effective plan for monitoring 
 93.26  performance, or, use of a multicounty, multi-entity or regional 
 93.27  approach to serve hard-to-employ families and working 
 93.28  participants in need of job retention and wage advancement 
 93.29  services who are identified as a target population to be served 
 93.30  in the plan submitted under section 256J.50, subdivision 7, 
 93.31  paragraph (b).  In distributing funds under this paragraph, the 
 93.32  commissioner must achieve a geographic balance.  The 
 93.33  commissioner may award funds under this paragraph to other 
 93.34  public, private, or nonprofit entities to deliver services in a 
 93.35  county or region where the entity or entities submit a plan that 
 93.36  demonstrates a strong capability to fulfill the terms of the 
 94.1   plan and where the plan shows an innovative or multi-entity 
 94.2   approach. 
 94.3      (b) For fiscal year 2001 only, of the funds available under 
 94.4   this subdivision the commissioner must allocate funding in the 
 94.5   amounts specified in article 1, section 2, subdivision 7, for an 
 94.6   intensive intervention transitional employment training project 
 94.7   and for nontraditional career assistance and training programs.  
 94.8   These allocations must occur before any set-aside funds are 
 94.9   allocated under paragraph (a). 
 94.10     Subd. 2a.  [ALTERNATIVE DISTRIBUTION FORMULA.] (a) By 
 94.11  January 31, 2001, the commissioner of human services must 
 94.12  develop and present to the appropriate legislative committees a 
 94.13  distribution formula that is an alternative to the formula 
 94.14  allocation specified in subdivision 3.  The proposed 
 94.15  distribution formula must target hard-to-employ MFIP 
 94.16  participants, and it must include an incentive-based component 
 94.17  that is designed to encourage county and tribal programs to 
 94.18  effectively serve hard-to-employ participants.  The 
 94.19  commissioner's proposal must also be designed to be implemented 
 94.20  for fiscal years 2002 and 2003 in place of the formula 
 94.21  allocation specified in subdivision 3. 
 94.22     (b) Notwithstanding the provisions of subdivision 2, 
 94.23  paragraph (a), if the commissioner does not develop a proposed 
 94.24  formula as required in paragraph (a), the set-aside funds for 
 94.25  fiscal years 2002 and 2003 that the commissioner would otherwise 
 94.26  distribute under subdivision 2, paragraph (a), must not be 
 94.27  distributed under that provision.  Funds available under 
 94.28  subdivision 2, paragraph (a), must instead be allocated in equal 
 94.29  amounts to each county and tribal program in fiscal years 2002 
 94.30  and 2003. 
 94.31     Subd. 3.  [FORMULA ALLOCATION.] Funds remaining after the 
 94.32  allocations in subdivisions 1 and 2 must be allocated as follows:
 94.33     (1) 85 percent shall be allocated in proportion to each 
 94.34  county's and tribal TANF program's one-parent MFIP cases that 
 94.35  have received MFIP assistance for at least 25 months, as sampled 
 94.36  on December 31 of the previous calendar year, excluding cases 
 95.1   where all caregivers are age 60 or over. 
 95.2      (2) 15 percent shall be allocated to each county's and 
 95.3   tribal TANF program's two-parent MFIP cases that have received 
 95.4   MFIP assistance for at least 25 months, as sampled on December 
 95.5   31 of the previous calendar year, excluding cases where all 
 95.6   caregivers are age 60 or over. 
 95.7      Subd. 4.  [USE OF FUNDS.] (a) A county or tribal program 
 95.8   may use funds allocated under this subdivision to provide 
 95.9   services to MFIP participants who are hard-to-employ and their 
 95.10  families.  Services provided must be intended to reduce the 
 95.11  number of MFIP participants who are expected to reach the 
 95.12  60-month time limit under section 256J.42.  Counties, tribes, 
 95.13  and other entities receiving funds under subdivisions 2 or 3 
 95.14  must submit semiannual progress reports to the commissioner 
 95.15  which detail program outcomes. 
 95.16     (b) Funds allocated under this section may not be used to 
 95.17  provide benefits that are defined as "assistance" in Code of 
 95.18  Federal Regulations, title 45, section 260.31, to an assistance 
 95.19  unit that is only receiving the food portion of MFIP benefits. 
 95.20     Subd. 5.  [SUNSET.] The grant program under this section 
 95.21  sunsets on June 30, 2003. 
 95.22     Sec. 29.  [256J.655] [NONTRADITIONAL CAREER ASSISTANCE AND 
 95.23  TRAINING.] 
 95.24     With the approval of the job counselor, a participant may 
 95.25  enroll and participate in a nontraditional career assistance and 
 95.26  training (NCAT) program under section 256K.30.  An MFIP 
 95.27  recipient participating in an NCAT program with the approval of 
 95.28  the job counselor is also eligible for employment and training 
 95.29  services, including child care and transportation. 
 95.30     Sec. 30.  [256K.25] [SUPPORTIVE HOUSING AND MANAGED CARE 
 95.31  PILOT PROJECT.] 
 95.32     Subdivision 1.  [ESTABLISHMENT AND PURPOSE.] (a) The 
 95.33  commissioner shall establish a supportive housing and managed 
 95.34  care pilot project in two counties, one within the seven-county 
 95.35  metropolitan area and one outside of that area, to determine 
 95.36  whether the integrated delivery of employment services, 
 96.1   supportive services, housing, and health care into a single, 
 96.2   flexible program will: 
 96.3      (1) reduce public expenditures on homeless families with 
 96.4   minor children, homeless noncustodial parents, and other 
 96.5   homeless individuals; 
 96.6      (2) increase the employment rates of these persons; and 
 96.7      (3) provide a new alternative to providing services to this 
 96.8   hard-to-serve population. 
 96.9      (b) The commissioner shall create a program for counties 
 96.10  for the purpose of providing integrated intensive and 
 96.11  individualized case management services, employment services, 
 96.12  health care services, rent subsidies or other short- or 
 96.13  medium-term housing assistance, and other supportive services to 
 96.14  eligible families and individuals.  Minimum project and 
 96.15  application requirements shall be developed by the commissioner 
 96.16  in cooperation with counties and their nonprofit partners with 
 96.17  the goal to provide the maximum flexibility in program design. 
 96.18     (c) Services available under this project must be 
 96.19  coordinated with available health care services for an eligible 
 96.20  project participant. 
 96.21     Subd. 2.  [DEFINITION.] For purposes of this section, 
 96.22  "homeless" means having no appropriate housing available and 
 96.23  lacking the resources necessary to access permanent housing, as 
 96.24  determined by the county requesting funding under subdivision 3, 
 96.25  and: 
 96.26     (1) living, or being at imminent risk of living, on the 
 96.27  street or in a shelter; or 
 96.28     (2) having been evicted from a dwelling or discharged from 
 96.29  a regional treatment center, state-operated community-based 
 96.30  program, community hospital, or residential treatment program.  
 96.31     Subd. 3.  [COUNTY ELIGIBILITY.] A county may request 
 96.32  funding under this pilot project if the county: 
 96.33     (1) agrees to develop, in cooperation with nonprofit 
 96.34  partners, a supportive housing and managed care pilot project 
 96.35  that integrates the delivery of employment services, supportive 
 96.36  services, housing and health care for eligible families and 
 97.1   individuals, or agrees to contract with an existing integrated 
 97.2   program; 
 97.3      (2) for eligible participants who are also MFIP recipients, 
 97.4   agrees to develop, in cooperation with nonprofit partners, 
 97.5   procedures to ensure that the services provided under the pilot 
 97.6   project are closely coordinated with the services provided under 
 97.7   MFIP; and 
 97.8      (3) develops a method for evaluating the quality of the 
 97.9   integrated services provided and the amount of any resulting 
 97.10  cost savings to the county and state. 
 97.11     Subd. 4.  [PARTICIPANT ELIGIBILITY.] (a) In order to be 
 97.12  eligible for the pilot project, the county must determine that a 
 97.13  participant is homeless or is at risk of homelessness; has a 
 97.14  mental illness, a history of substance abuse, or HIV; and is a 
 97.15  family that meets the criteria in paragraph (b) or is an 
 97.16  individual who meets the criteria in paragraph (c). 
 97.17     (b) An eligible family must include a minor child or a 
 97.18  pregnant woman, and: 
 97.19     (1) be receiving or meet the income eligibility guidelines 
 97.20  for MFIP assistance under chapter 256J; or 
 97.21     (2) include an adult caregiver who is employed or is 
 97.22  receiving employment and training services, and have household 
 97.23  income below the MFIP exit level in section 256J.24, subdivision 
 97.24  10.  
 97.25     (c) An eligible individual must: 
 97.26     (1) meet the eligibility requirements of the group 
 97.27  residential housing program under section 256I.04, subdivision 
 97.28  1; or 
 97.29     (2) be a noncustodial parent who is employed or is 
 97.30  receiving employment and training services, and have household 
 97.31  income below the MFIP exit level in section 256J.24, subdivision 
 97.32  10.  
 97.33     Subd. 5.  [FUNDING.] A county may request funding from the 
 97.34  commissioner for a specified number of TANF-eligible project 
 97.35  participants.  The commissioner shall review the request for 
 97.36  compliance with subdivisions 1 to 4 and may approve or 
 98.1   disapprove the request.  If other funds are available, the 
 98.2   commissioner may allocate funding for project participants who 
 98.3   meet the eligibility requirements of subdivision 4, paragraph 
 98.4   (c).  
 98.5      Subd. 6.  [REPORT.] Participating counties and the 
 98.6   commissioner shall collaborate to prepare and issue an annual 
 98.7   report, beginning December 1, 2001, to the chairs of the 
 98.8   appropriate legislative committees on the pilot project's use of 
 98.9   public resources, including other funds leveraged for this 
 98.10  initiative, the employment and housing status of the families 
 98.11  and individuals served in the project, and the 
 98.12  cost-effectiveness of the project.  The annual report must also 
 98.13  evaluate the pilot project with respect to the following project 
 98.14  goals:  that participants will lead more productive, healthier, 
 98.15  more stable and better quality lives; that the teams created 
 98.16  under the project to deliver services for each project 
 98.17  participant will be accountable for ensuring that services are 
 98.18  more appropriate, cost-effective and well-coordinated; and that 
 98.19  the system-wide costs of serving this population, and the 
 98.20  inappropriate use of emergency, crisis-oriented or institutional 
 98.21  services, will be materially reduced.  The commissioner shall 
 98.22  provide data that may be needed to evaluate the project to 
 98.23  participating counties that request the data. 
 98.24     Subd. 7.  [SUNSET.] The pilot project under this section 
 98.25  sunsets on June 30, 2006. 
 98.26     Sec. 31.  [256K.30] [GRANTS FOR NONTRADITIONAL CAREER 
 98.27  ASSISTANCE AND TRAINING PROGRAMS.] 
 98.28     Subdivision 1.  [ESTABLISHMENT AND PURPOSE.] The 
 98.29  commissioner shall establish a program of reimbursement-based 
 98.30  grants to nonprofit organizations to provide nontraditional 
 98.31  career assistance and training (NCAT) programs that encourage 
 98.32  and assist low-income women with minor children to enter 
 98.33  nontraditional careers in the trades and in manual and technical 
 98.34  operations. 
 98.35     Subd. 2.  [REQUIREMENTS FOR GRANTEES.] To be eligible for a 
 98.36  grant under this section, an NCAT program must include the 
 99.1   career assistance component specified in subdivision 4. 
 99.2      Subd. 3.  [OUTREACH COMPONENT.] An NCAT program may include 
 99.3   an outreach component that provides outreach to girls and women 
 99.4   through public and private elementary and secondary schools, 
 99.5   appropriate community organizations, or existing state and 
 99.6   county employment and training programs.  The outreach must 
 99.7   consist of:  general information concerning opportunities for 
 99.8   women in the trades, manual, and technical occupations, 
 99.9   including specific fields where worker shortages exist; and 
 99.10  specific information about training programs offered.  The 
 99.11  outreach may include printed or recorded information, hands-on 
 99.12  experiences for women and girls, presentations to women and 
 99.13  girls, or ongoing contact with appropriate staff. 
 99.14     Federal TANF funds may not be used for the outreach 
 99.15  component of an NCAT program. 
 99.16     Subd. 4.  [CAREER ASSISTANCE COMPONENT.] An NCAT program 
 99.17  may include a career assistance component that provides the 
 99.18  following assistance for low-income women to enter careers in 
 99.19  the trades and technical occupations: 
 99.20     (1) training designed to prepare women to succeed in 
 99.21  nontraditional occupations, conducted by an NCAT grantee or in 
 99.22  collaboration with another institution.  The training must cover 
 99.23  the knowledge and skills required for the trade, information 
 99.24  about on-the-job realities for women in the particular trade, 
 99.25  physical strength and stamina training as needed, opportunities 
 99.26  for developing workplace problem-solving skills, and information 
 99.27  about the current and projected future job market and likely 
 99.28  career path for the trade; 
 99.29     (2) assistance with child care and transportation during 
 99.30  training, during job search, and for at least the first two 
 99.31  months of posttraining employment; 
 99.32     (3) job placement assistance during training, during job 
 99.33  search, and for at least two years after completion of the 
 99.34  training program; and 
 99.35     (4) job retention support may be in the form of mentorship 
 99.36  programs, support groups, or ongoing staff contact for at least 
100.1   the first year of posttraining employment, including access to 
100.2   job-related information, assistance with workplace issue 
100.3   resolution, and access to advocacy services. 
100.4      Subd. 5.  [NCAT; ELIGIBLE PARTICIPANTS.] To be eligible to 
100.5   enroll in an NCAT program under this section, a participant must 
100.6   be a female caregiver receiving assistance under chapter 256J or 
100.7   this chapter.  
100.8      Subd. 6.  [ACCESSIBILITY REQUIRED.] Approved NCAT programs 
100.9   must be accessible to women who are MFIP participants.  Factors 
100.10  that contribute to a program's accessibility include: 
100.11     (1) affordability of tuition and supplies; 
100.12     (2) geographic proximity to low-income neighborhoods, child 
100.13  care, and public transportation routes; and 
100.14     (3) flexibility of the hours per week required by the 
100.15  program and the duration of the program, in order to be 
100.16  compatible with the program participants' family needs and the 
100.17  need for participants to be employed during training. 
100.18     Sec. 32.  [256K.35] [AT-RISK YOUTH OUT-OF-WEDLOCK PREGNANCY 
100.19  PREVENTION PROGRAM.] 
100.20     Subdivision 1.  [ESTABLISHMENT AND PURPOSE.] The 
100.21  commissioner shall establish a statewide grant program to 
100.22  prevent or reduce the incidence of out-of-wedlock pregnancies 
100.23  among homeless, runaway, or thrown-away youth who are at risk of 
100.24  being prostituted or currently being used in prostitution.  The 
100.25  goal of the out-of-wedlock pregnancy prevention program is to 
100.26  significantly increase the number of existing short-term shelter 
100.27  beds for these youth in the state.  By providing supportive 
100.28  services for emergency shelter, transitional housing, and 
100.29  services to reconnect the youth with their families where 
100.30  appropriate, the number of youth at risk of being sexually 
100.31  exploited or actually being sexually exploited, and thus at risk 
100.32  of experiencing an out-of-wedlock pregnancy, will be reduced. 
100.33     Subd. 2.  [FUNDS AVAILABLE.] The commissioner shall make 
100.34  funds for supportive services for emergency shelter and 
100.35  transitional housing for out-of-wedlock pregnancy prevention 
100.36  available to eligible nonprofit corporations or government 
101.1   agencies to provide supportive services for emergency and 
101.2   transitional housing for at-risk youth.  The commissioner shall 
101.3   consider the need for emergency and transitional housing 
101.4   supportive services throughout the state, and must give priority 
101.5   to applicants who offer 24-hour emergency facilities. 
101.6      Subd. 3.  [APPLICATION; ELIGIBILITY.] (a) A nonprofit 
101.7   corporation or government agency must submit an application to 
101.8   the commissioner in the form and manner the commissioner 
101.9   establishes.  The application must describe how the applicant 
101.10  meets the eligibility criteria under paragraph (b).  The 
101.11  commissioner may also require an applicant to provide additional 
101.12  information. 
101.13     (b) To be eligible for funding under this section, an 
101.14  applicant must meet the following criteria: 
101.15     (1) the applicant must have a commitment to helping the 
101.16  community, children, and preventing juvenile prostitution.  If 
101.17  the applicant does not have any past experience with youth 
101.18  involved in or at risk of being used in prostitution, the 
101.19  applicant must demonstrate knowledge of best practices in this 
101.20  area and develop a plan to follow those practices; 
101.21     (2) the applicant must present a plan to communicate with 
101.22  local law enforcement officials, social services, and the 
101.23  commissioner consistent with state and federal law; and 
101.24     (3) the applicant must present a plan to encourage 
101.25  homeless, runaway, or thrown-away youth to either reconnect with 
101.26  family or to transition into long-term housing. 
101.27     Subd. 4.  [USES OF FUNDS.] (a) Funds available under this 
101.28  section must be used to create and maintain supportive services 
101.29  for emergency shelter and transitional housing for homeless, 
101.30  runaway, and thrown-away youth.  Federal TANF funds must be used 
101.31  to serve youth and their families with household income below 
101.32  200 percent of the federal poverty guidelines.  If other funds 
101.33  are available, services may be provided to youth outside of 
101.34  TANF-eligible families. 
101.35     (b) Funds available under this section shall not be used to 
101.36  conduct general education or awareness programs unrelated to the 
102.1   operation of an emergency shelter or transitional housing. 
102.2      Sec. 33.  Minnesota Statutes 1999 Supplement, section 
102.3   626.556, subdivision 2, is amended to read: 
102.4      Subd. 2.  [DEFINITIONS.] As used in this section, the 
102.5   following terms have the meanings given them unless the specific 
102.6   content indicates otherwise: 
102.7      (a) "Sexual abuse" means the subjection of a child by a 
102.8   person responsible for the child's care, by a person who has a 
102.9   significant relationship to the child, as defined in section 
102.10  609.341, or by a person in a position of authority, as defined 
102.11  in section 609.341, subdivision 10, to any act which constitutes 
102.12  a violation of section 609.342 (criminal sexual conduct in the 
102.13  first degree), 609.343 (criminal sexual conduct in the second 
102.14  degree), 609.344 (criminal sexual conduct in the third degree), 
102.15  609.345 (criminal sexual conduct in the fourth degree), or 
102.16  609.3451 (criminal sexual conduct in the fifth degree).  Sexual 
102.17  abuse also includes any act which involves a minor which 
102.18  constitutes a violation of prostitution offenses under sections 
102.19  609.321 to 609.324 or 617.246.  Sexual abuse includes threatened 
102.20  sexual abuse.  
102.21     (b) "Person responsible for the child's care" means (1) an 
102.22  individual functioning within the family unit and having 
102.23  responsibilities for the care of the child such as a parent, 
102.24  guardian, or other person having similar care responsibilities, 
102.25  or (2) an individual functioning outside the family unit and 
102.26  having responsibilities for the care of the child such as a 
102.27  teacher, school administrator, or other lawful custodian of a 
102.28  child having either full-time or short-term care 
102.29  responsibilities including, but not limited to, day care, 
102.30  babysitting whether paid or unpaid, counseling, teaching, and 
102.31  coaching.  
102.32     (c) "Neglect" means: 
102.33     (1) failure by a person responsible for a child's care to 
102.34  supply a child with necessary food, clothing, shelter, health, 
102.35  medical, or other care required for the child's physical or 
102.36  mental health when reasonably able to do so; 
103.1      (2) failure to protect a child from conditions or actions 
103.2   which imminently and seriously endanger the child's physical or 
103.3   mental health when reasonably able to do so; 
103.4      (3) failure to provide for necessary supervision or child 
103.5   care arrangements appropriate for a child after considering 
103.6   factors as the child's age, mental ability, physical condition, 
103.7   length of absence, or environment, when the child is unable to 
103.8   care for the child's own basic needs or safety, or the basic 
103.9   needs or safety of another child in their care; 
103.10     (4) failure to ensure that the child is educated as defined 
103.11  in sections 120A.22 and 260C.163, subdivision 11; 
103.12     (5) nothing in this section shall be construed to mean that 
103.13  a child is neglected solely because the child's parent, 
103.14  guardian, or other person responsible for the child's care in 
103.15  good faith selects and depends upon spiritual means or prayer 
103.16  for treatment or care of disease or remedial care of the child 
103.17  in lieu of medical care; except that a parent, guardian, or 
103.18  caretaker, or a person mandated to report pursuant to 
103.19  subdivision 3, has a duty to report if a lack of medical care 
103.20  may cause serious danger to the child's health.  This section 
103.21  does not impose upon persons, not otherwise legally responsible 
103.22  for providing a child with necessary food, clothing, shelter, 
103.23  education, or medical care, a duty to provide that care; 
103.24     (6) prenatal exposure to a controlled substance, as defined 
103.25  in section 253B.02, subdivision 2, used by the mother for a 
103.26  nonmedical purpose, as evidenced by withdrawal symptoms in the 
103.27  child at birth, results of a toxicology test performed on the 
103.28  mother at delivery or the child at birth, or medical effects or 
103.29  developmental delays during the child's first year of life that 
103.30  medically indicate prenatal exposure to a controlled substance; 
103.31     (7) "medical neglect" as defined in section 260C.007, 
103.32  subdivision 4, clause (5); 
103.33     (8) that the parent or other person responsible for the 
103.34  care of the child: 
103.35     (i) engages in violent behavior that demonstrates a 
103.36  disregard for the well-being of the child as indicated by action 
104.1   that could reasonably result in serious physical, mental, or 
104.2   threatened injury, or emotional damage to the child; 
104.3      (ii) engages in repeated domestic assault that would 
104.4   constitute a violation of section 609.2242, subdivision 2 or 4; 
104.5      (iii) intentionally inflicts or attempts to inflict bodily 
104.6   harm against a family or household member, as defined in section 
104.7   518B.01, subdivision 2, that is within sight or sound of the 
104.8   child; or 
104.9      (iv) subjects the child to ongoing domestic violence by the 
104.10  abuser in the home environment that is likely to have a 
104.11  detrimental effect on the well-being of the child; 
104.12     (9) chronic and severe use of alcohol or a controlled 
104.13  substance by a parent or person responsible for the care of the 
104.14  child that adversely affects the child's basic needs and safety; 
104.15  or 
104.16     (10) (9) emotional harm from a pattern of behavior which 
104.17  contributes to impaired emotional functioning of the child which 
104.18  may be demonstrated by a substantial and observable effect in 
104.19  the child's behavior, emotional response, or cognition that is 
104.20  not within the normal range for the child's age and stage of 
104.21  development, with due regard to the child's culture. 
104.22     (d) "Physical abuse" means any physical injury, mental 
104.23  injury, or threatened injury, inflicted by a person responsible 
104.24  for the child's care on a child other than by accidental means, 
104.25  or any physical or mental injury that cannot reasonably be 
104.26  explained by the child's history of injuries, or any aversive 
104.27  and deprivation procedures that have not been authorized under 
104.28  section 245.825.  Abuse does not include reasonable and moderate 
104.29  physical discipline of a child administered by a parent or legal 
104.30  guardian which does not result in an injury.  Actions which are 
104.31  not reasonable and moderate include, but are not limited to, any 
104.32  of the following that are done in anger or without regard to the 
104.33  safety of the child: 
104.34     (1) throwing, kicking, burning, biting, or cutting a child; 
104.35     (2) striking a child with a closed fist; 
104.36     (3) shaking a child under age three; 
105.1      (4) striking or other actions which result in any 
105.2   nonaccidental injury to a child under 18 months of age; 
105.3      (5) unreasonable interference with a child's breathing; 
105.4      (6) threatening a child with a weapon, as defined in 
105.5   section 609.02, subdivision 6; 
105.6      (7) striking a child under age one on the face or head; 
105.7      (8) purposely giving a child poison, alcohol, or dangerous, 
105.8   harmful, or controlled substances which were not prescribed for 
105.9   the child by a practitioner, in order to control or punish the 
105.10  child; or other substances that substantially affect the child's 
105.11  behavior, motor coordination, or judgment or that results in 
105.12  sickness or internal injury, or subjects the child to medical 
105.13  procedures that would be unnecessary if the child were not 
105.14  exposed to the substances; or 
105.15     (9) unreasonable physical confinement or restraint not 
105.16  permitted under section 609.379, including but not limited to 
105.17  tying, caging, or chaining. 
105.18     (e) "Report" means any report received by the local welfare 
105.19  agency, police department, or county sheriff pursuant to this 
105.20  section. 
105.21     (f) "Facility" means a licensed or unlicensed day care 
105.22  facility, residential facility, agency, hospital, sanitarium, or 
105.23  other facility or institution required to be licensed under 
105.24  sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or 
105.25  chapter 245B; or a school as defined in sections 120A.05, 
105.26  subdivisions 9, 11, and 13; and 124D.10; or a nonlicensed 
105.27  personal care provider organization as defined in sections 
105.28  256B.04, subdivision 16, and 256B.0625, subdivision 19a. 
105.29     (g) "Operator" means an operator or agency as defined in 
105.30  section 245A.02.  
105.31     (h) "Commissioner" means the commissioner of human services.
105.32     (i) "Assessment" includes authority to interview the child, 
105.33  the person or persons responsible for the child's care, the 
105.34  alleged perpetrator, and any other person with knowledge of the 
105.35  abuse or neglect for the purpose of gathering the facts, 
105.36  assessing the risk to the child, and formulating a plan.  
106.1      (j) "Practice of social services," for the purposes of 
106.2   subdivision 3, includes but is not limited to employee 
106.3   assistance counseling and the provision of guardian ad litem and 
106.4   visitation expeditor services.  
106.5      (k) "Mental injury" means an injury to the psychological 
106.6   capacity or emotional stability of a child as evidenced by an 
106.7   observable or substantial impairment in the child's ability to 
106.8   function within a normal range of performance and behavior with 
106.9   due regard to the child's culture. 
106.10     (l) "Threatened injury" means a statement, overt act, 
106.11  condition, or status that represents a substantial risk of 
106.12  physical or sexual abuse or mental injury. 
106.13     (m) Persons who conduct assessments or investigations under 
106.14  this section shall take into account accepted child-rearing 
106.15  practices of the culture in which a child participates, which 
106.16  are not injurious to the child's health, welfare, and safety. 
106.17     Sec. 34.  Minnesota Statutes 1998, section 626.556, is 
106.18  amended by adding a subdivision to read: 
106.19     Subd. 2a.  [EXPOSURE TO DOMESTIC VIOLENCE.] Maltreatment 
106.20  reports involving children exposed to domestic violence or 
106.21  witnessing domestic violence are governed by subdivision 2, 
106.22  paragraph (c), clauses (1) to (3), paragraph (d), and paragraph 
106.23  (l). 
106.24     Sec. 35.  [DAKOTA COUNTY MFIP DIVERSIONARY ASSISTANCE PILOT 
106.25  PROJECT.] 
106.26     Subdivision 1.  [ESTABLISHMENT AND PURPOSE.] 
106.27  Notwithstanding any contrary law, the commissioner of human 
106.28  services shall establish an MFIP diversionary assistance pilot 
106.29  project in Dakota county to encourage rapid entrance into the 
106.30  work force.  The pilot project is intended to improve 
106.31  employability and self-sufficiency, to minimize the number of 
106.32  families reaching the 60-month time limit under the federal TANF 
106.33  block grant program, and to reduce the number of families who 
106.34  need ongoing MFIP assistance under Minnesota Statutes, chapter 
106.35  256J. Unlike MFIP program assistance under Minnesota Statutes, 
106.36  section 256J.24, subdivision 5, the diversionary assistance 
107.1   pilot project payments shall not include a food portion.  
107.2   Participating families may instead apply for benefits from the 
107.3   federal food stamp program. 
107.4      Subd. 2.  [MANDATORY PARTICIPATION.] Beginning July 1, 2001 
107.5   and through March 31, 2003, the following families residing in 
107.6   Dakota county must be enrolled in the Dakota county diversionary 
107.7   assistance pilot project: 
107.8      (1) families who apply for MFIP under Minnesota Statutes, 
107.9   chapter 256J, or reapply after being closed for 30 days or more 
107.10  from MFIP, and who meet eligibility requirements; and 
107.11     (2) families currently enrolled in MFIP who are under a 30 
107.12  percent sanction and have been assessed as capable of 
107.13  participating in a preemployment or employment activity, as 
107.14  those terms are defined in Minnesota Statutes, section 256J.49, 
107.15  subdivision 13, but who are not participating in these 
107.16  activities.  These families shall be closed from MFIP prior to 
107.17  being transferred to the diversionary assistance pilot project. 
107.18  Months of participation in the pilot project shall count towards 
107.19  a participant's 60-month time limit under Minnesota Statutes, 
107.20  section 256J.42. 
107.21     Subd. 3.  [FAMILIES EXCLUDED FROM PROJECT.] The following 
107.22  assistance units or families must be excluded from participation 
107.23  in the Dakota county diversionary assistance pilot project: 
107.24     (1) assistance units in which only minor children would 
107.25  receive assistance; 
107.26     (2) families in which the caregiver is a victim of family 
107.27  violence and the caregiver is complying with a safety plan or an 
107.28  alternative employment plan under Minnesota Statutes, chapter 
107.29  256J; 
107.30     (3) a minor parent or pregnant minor, the minor parent's 
107.31  child, and the caregivers of the minor parent who are included 
107.32  in the minor parent's assistance unit under Minnesota Statutes, 
107.33  section 256J.24; 
107.34     (4) families in which the caregiver is age 60 or older; 
107.35     (5) families in which the caregiver has an infant child 
107.36  under 12 weeks of age; and 
108.1      (6) families who are determined by the county agency to be 
108.2   unlikely to benefit from the pilot project's services. 
108.3      Subd. 4.  [APPLYING FOR ASSISTANCE; APPLICANT REQUIREMENTS 
108.4   AND RESPONSIBILITIES.] Minnesota Statutes, section 256J.09, 
108.5   excluding subdivisions 4, 7, and 9, applies to families that 
108.6   apply for assistance under the pilot project.  The applicant 
108.7   requirements and responsibilities under Minnesota Statutes 
108.8   section 256J.30, excluding subdivisions 4 to 11, also apply to 
108.9   pilot project applicants.  Families determined eligible for 
108.10  benefits under this pilot project may request termination from 
108.11  the pilot project at any time. 
108.12     Subd. 5.  [FAMILY COMPOSITION;ASSISTANCE UNITS.] In 
108.13  determining the composition of assistance units and eligibility 
108.14  under the pilot project the following provisions apply:  
108.15  Minnesota Statutes, sections 256J.08, subdivision 7; 256J.13; 
108.16  256J.15; and 256J.24, subdivisions 1 to 4. 
108.17     Subd. 6.  [TREATMENT OF INCOME.] (a) For purposes of 
108.18  defining income under the pilot project, the MFIP income 
108.19  definitions under Minnesota Statutes, chapter 256J, must be used.
108.20  The agency shall evaluate the income of each member of an 
108.21  assistance unit that is requesting assistance payments under 
108.22  this project. 
108.23     (b) Countable income means the gross earned income and 
108.24  unearned income that is not excluded under Minnesota Statutes, 
108.25  section 256J.21, subdivision 2, or disregarded under Minnesota 
108.26  Statutes, section 256J.08, subdivision 24.  In determining the 
108.27  amount of diversionary assistance to be issued for the month 
108.28  that payments are to be made, the county agency must determine 
108.29  if countable income is actually available to apply to a 
108.30  participant's basic needs. 
108.31     (c) The difference between basic needs as defined under 
108.32  subdivision 9, paragraph (a), clause (3), and countable income 
108.33  shall be the amount of the monthly diversionary payments that is 
108.34  subject to the provisions of subdivision 9, paragraph (b). 
108.35     Subd. 7.  [CALCULATING PAYMENTS.] (a) The county must use 
108.36  prospective budgeting to calculate the assistance payment 
109.1   amounts.  The provisions of Minnesota Statutes, section 256J.34, 
109.2   subdivision 1, paragraphs (a) to (c), apply to the calculations, 
109.3   except that the provisions of those paragraphs shall be used for 
109.4   each 30-day period during the 90-day diversionary assistance 
109.5   pilot project.  The payment amounts for the 90-day period must 
109.6   be determined upon approval of an applicant's request for 
109.7   assistance and issued monthly over the 90-day period, unless the 
109.8   participant reports a change in circumstances that would 
109.9   increase the amount of assistance, or the participant is 
109.10  sanctioned or terminated from the pilot project.  Monthly 
109.11  payments are subject to the limitations in subdivision 9, 
109.12  paragraph (b). 
109.13     (b) Prospective budgeting is not subject to overpayments or 
109.14  underpayments unless fraud is determined under Minnesota 
109.15  Statutes, section 256.98.  The provisions of Minnesota Statutes, 
109.16  section 256.98, subdivision 1, apply to the pilot project. 
109.17     (c) For the pilot project, client data must be entered and 
109.18  maintained on the department of human services' MAXIS computer 
109.19  system and all diversionary assistance payments authorized 
109.20  throughout the duration of the project shall be issued from 
109.21  MAXIS. 
109.22     Subd. 8.  [CHANGE IN RESIDENCE.] When a family moves to 
109.23  another Minnesota county and applies for MFIP and is found 
109.24  eligible, MFIP benefits may be issued effective the day 
109.25  following the date through which diversionary assistance 
109.26  payments under this project provided for the needs of the 
109.27  family.  Participants must report any change of address within 
109.28  ten days of the date the change occurs. 
109.29     Subd. 9.  [PILOT PROJECT DESIGN AND SERVICES.] (a) 
109.30  Assistance under the Dakota county MFIP diversionary assistance 
109.31  pilot project is available to an eligible participant for 90 
109.32  days after enrollment.  The county agency may have families 
109.33  participating in the project through June 30, 2003.  For 
109.34  purposes of eligibility for child care assistance under 
109.35  Minnesota Statutes, chapter 119B, pilot program participants are 
109.36  eligible for the same benefits as MFIP recipients. The following 
110.1   support services and programs are available to participants, 
110.2   based on the county agency's documentation of need or 
110.3   determination of eligibility: 
110.4      (1) the development of a self-sufficiency plan in the event 
110.5   that the participant is determined to be not ready to seek or 
110.6   obtain unsubsidized employment while enrolled in the project; 
110.7      (2) child care assistance under Minnesota Statutes, chapter 
110.8   119B, for work or for all preemployment or employment-related 
110.9   activities, as defined in Minnesota Statutes, section 256J.49, 
110.10  subdivision 13, approved by a county in an employment plan, as 
110.11  defined in Minnesota Statutes, section 256J.49, subdivision 5.  
110.12  This may include assistance with child care costs related to 
110.13  accessing social services programs and activities, including but 
110.14  not limited to mental health and chemical dependency program 
110.15  services; 
110.16     (3) funding for basic needs, which include shelter, 
110.17  utilities, and other personal requirements of subsistence as 
110.18  identified by the participant and approved by the county agency. 
110.19  Vendor payments shall be made for shelter and utilities up to 
110.20  the amount of assistance to be issued; 
110.21     (4) other employment-focused supports that are identified 
110.22  after a needs assessment is conducted for the pilot project 
110.23  participant; 
110.24     (5) approved training programs, as defined in Minnesota 
110.25  Statutes, section 256J.49, subdivision 13, and as limited by the 
110.26  provisions of Minnesota Statutes, section 256J.53; 
110.27     (6) approved work activities, as defined in Minnesota 
110.28  Statutes, section 256J.49, subdivision 13; 
110.29     (7) federal food stamp program benefits which the 
110.30  participant must separately apply for; 
110.31     (8) medical assistance under Minnesota Statutes, chapter 
110.32  256B, or MinnesotaCare under Minnesota Statutes, chapter 256L; 
110.33     (9) enhanced employment services, which include services 
110.34  available to individuals eligible for MFIP as described in the 
110.35  county's local service unit plan under Minnesota Statutes, 
110.36  section 268.88; and 
111.1      (10) emergency assistance under Minnesota Statutes, section 
111.2   256J.48. 
111.3      (b) Payments for basic needs shall be determined by an 
111.4   eligibility worker from the date of application.  Total monthly 
111.5   payments must not exceed 133 percent of the ongoing MFIP monthly 
111.6   cash grant for which the participant would have otherwise been 
111.7   eligible under Minnesota Statutes, section 256J.24, subdivision 
111.8   5. 
111.9      (c) Each participant must also be provided immediate access 
111.10  to an interdisciplinary team consisting of financial workers, 
111.11  employment counselors, and social workers who can conduct an 
111.12  individualized assessment of family needs and assist in 
111.13  arranging needed services.  An employment plan developed under 
111.14  this subdivision must be tailored to each participant family's 
111.15  needs. 
111.16     (d) For a participant to receive monthly payments as 
111.17  specified in paragraph (b), the participant must cooperate with 
111.18  the participant's employment plan. 
111.19     (e) No standard exemptions from participation in employment 
111.20  services are granted to pilot project participants during the 
111.21  pilot project. 
111.22     (f) Noncooperation with the employment plan without good 
111.23  cause shall result in a sanction equal to a reduction of 100 
111.24  percent of funding for basic needs for the remainder of the 
111.25  90-day participation period. 
111.26     Subd. 10.  [GOOD CAUSE FOR FAILURE TO COMPLY WITH AN 
111.27  EMPLOYMENT PLAN.] Good cause for failure to comply with an 
111.28  employment plan under this section exists when: 
111.29     (1) appropriate child care is not available; 
111.30     (2) the job does not meet the definition of suitable 
111.31  employment under Minnesota Statutes, section 256J.49, 
111.32  subdivision 12; 
111.33     (3) the participant is ill or injured; 
111.34     (4) a member of the unit, a relative in the household, or a 
111.35  foster child in the household is ill and needs care by the 
111.36  participant that prevents the participant from complying; 
112.1      (5) the participant has an infant child under 12 weeks of 
112.2   age; 
112.3      (6) the participant is unable to secure needed 
112.4   transportation; 
112.5      (7) the participant is in an emergency situation that 
112.6   prevents compliance with the employment plan; 
112.7      (8) the schedule of compliance with the employment plan 
112.8   conflicts with judicial proceedings; or 
112.9      (9) the participant is already participating in acceptable 
112.10  work activities. 
112.11     Subd. 11.  [TRANSITION SERVICES.] (a) After participation 
112.12  in the pilot project, participants who are employed and not on 
112.13  MFIP are eligible for transition year child care assistance 
112.14  under Minnesota Statutes, chapter 119B, without regard to 
112.15  current or previous MFIP program eligibility.  For families who 
112.16  were eligible for medical assistance or MinnesotaCare during the 
112.17  90 days, the county agency shall facilitate any eligibility 
112.18  determination that is needed for continued medical coverage. 
112.19     (b) Pilot project participants who have not attained an 
112.20  income during participation in the pilot project that would 
112.21  result in MFIP ineligibility are eligible for the following 
112.22  options: 
112.23     (1) participants who were not on MFIP prior to 
112.24  participating in the pilot program may apply for MFIP under 
112.25  Minnesota Statutes, chapter 256J; 
112.26     (2) participants enrolled in MFIP prior to participating in 
112.27  the pilot program who were not under sanction during the pilot 
112.28  project may revert to participation in MFIP; or 
112.29     (3) participants who were under sanction during the pilot 
112.30  project may reapply for MFIP. 
112.31     Subd. 12.  [EVALUATION AND REPORT.] Evaluation of the pilot 
112.32  project shall be based on outcome evaluation criteria negotiated 
112.33  with the commissioner of human services prior to the project's 
112.34  implementation.  By January 31, 2003, the commissioner shall 
112.35  prepare and submit a report to the legislature on the results of 
112.36  the pilot project and recommendations for changes to the project 
113.1   if it were to be implemented on a permanent basis. 
113.2      Subd. 13.  [FUNDING.] The commissioners of human services 
113.3   and children, families, and learning shall use existing MFIP and 
113.4   child care assistance funding for the purposes of the basic 
113.5   needs payments made on behalf of participant families and the 
113.6   child care assistance provided to participant families during 
113.7   the 90 days that families are enrolled in the pilot project. 
113.8      Subd. 14.  [COUNTY AGENCY DUTIES; APPLICANT AND PARTICIPANT 
113.9   RIGHTS.] (a) The county agency shall develop policies and 
113.10  procedures in the following areas prior to implementing the 
113.11  pilot project: 
113.12     (1) referrals to employment services that are described in 
113.13  the county's local service unit plan under Minnesota Statutes, 
113.14  section 268.88; 
113.15     (2) notices to participants about employment services 
113.16  provisions and requirements; and 
113.17     (3) documentation and verification of eligibility. 
113.18     (b) The provisions of Minnesota Statutes, section 256J.31, 
113.19  concerning applicant and participant rights and county agency 
113.20  responsibilities apply to the pilot project, except that the use 
113.21  of vendor payments shall not be considered an adverse action. 
113.22     (c) When a participant receives a 100 percent sanction 
113.23  under subdivision 9, the county agency must monitor the 
113.24  well-being of the children in the household who are at risk of 
113.25  safety, health, or nutritional problems due to the lack of 
113.26  resources available to the family.  The county agency must 
113.27  provide necessary services or resources to the family in order 
113.28  to protect the welfare of the children in the household. 
113.29     (d) The county agency must report quarterly to the 
113.30  commissioner of human services, and to the chairs of the house 
113.31  health and human services policy committee and the senate health 
113.32  and family security committee, on the number of participants who 
113.33  have received a sanction under subdivision 9. 
113.34     Subd. 15.  [FAIR HEARINGS.] The fair hearing provisions of 
113.35  Minnesota Statutes, section 256J.40, subdivision 1, shall be 
113.36  followed under the pilot project, except that diversionary 
114.1   assistance payments may be reduced, suspended, or terminated as 
114.2   proposed even if that action is appealed.  The agency's decision 
114.3   to reduce, suspend, or terminate shall continue pending the fair 
114.4   hearing decision, regardless of when the participant requests 
114.5   the hearing.  The county agency shall request that the 
114.6   commissioner of human services expedite the fair hearing when a 
114.7   participant's family situation meets the same emergency need 
114.8   criteria as defined for the emergency assistance program under 
114.9   Minnesota Statutes, section 256J.48. 
114.10     Subd. 16.  [FEDERAL WAIVER.] The commissioner of human 
114.11  services shall apply for any federal waiver required to 
114.12  implement the Dakota county MFIP diversionary assistance pilot 
114.13  project under this section. 
114.14     Subd. 17.  [SUNSET.] This section sunsets on June 30, 2003. 
114.15     Sec. 36.  [FISCAL SANCTION FOR POOR CASELOAD REDUCTION 
114.16  PERFORMANCE; PLAN REQUIRED.] 
114.17     By February 1, 2001, the commissioner of human services 
114.18  shall develop a plan to apply fiscal sanctions against a 
114.19  county's or tribe's allocation of grant funds under Minnesota 
114.20  Statutes, section 256J.625, and under Minnesota Statutes, 
114.21  section 256J.62 or 256J.645, whichever is applicable, when a 
114.22  county or tribe does not adequately perform with respect to the 
114.23  performance measures related to cases that have left MFIP 
114.24  assistance, as listed in Minnesota Statutes, section 256J.751, 
114.25  paragraph (a), clause (3), and paragraph (b), clause (1).  The 
114.26  commissioner's plan must address a county's relative performance 
114.27  on these measures so that a county with a relatively large 
114.28  proportion of hard-to-employ MFIP participants is not unduly 
114.29  penalized if the county has poor performance on these measures.  
114.30  The plan must also provide a mechanism to appropriately allocate 
114.31  a portion of a county's or tribe's fiscal sanction against the 
114.32  employment and training service providers used by the county or 
114.33  tribe.  The commissioner must report the plan required by this 
114.34  section to the appropriate legislative committees by February 1, 
114.35  2001. 
114.36     Sec. 37.  [WORK GROUP ON SANCTION RECOMMENDATIONS.] 
115.1      A legislative work group on MFIP sanction recommendations 
115.2   shall be established.  The chairs of the house health and human 
115.3   services policy committee and the senate health and family 
115.4   security committee shall each appoint five legislators, two of 
115.5   whom must be members of the minority party, to be members of 
115.6   this work group.  The work group must review the implementation 
115.7   of current MFIP sanction policy and make recommendations for any 
115.8   necessary improvements.  The work group must submit a report on 
115.9   its review and recommendations to the legislature by January 1, 
115.10  2001. 
115.11     Sec. 38.  [REPORTS ON SAVE IMPLEMENTATION.] 
115.12     On January 15, 2002, and January 15, 2003, the commissioner 
115.13  shall report to the chairs of the house health and human 
115.14  services policy committee and the senate health and family 
115.15  security committee on the usage and costs of the SAVE program 
115.16  over the previous year.  These reports must include summary, 
115.17  nonidentifying information on the number of inquiries per month 
115.18  that were submitted to the SAVE system, the number of times 
115.19  secondary verifications were pursued as a result of the 
115.20  inquiries submitted to SAVE, and the number of times the county 
115.21  determined, as a result of information provided through the SAVE 
115.22  system, that an applicant to a program listed in section 256.01, 
115.23  subdivision 18, was ineligible for benefits due to the 
115.24  applicant's immigration status. 
115.25     Sec. 39.  [REPEALER.] 
115.26     (a) Minnesota Statutes 1998, section 256J.46, subdivision 
115.27  1a, is repealed. 
115.28     (b) Laws 1999, chapter 245, article 5, section 24, is 
115.29  repealed. 
115.30                             ARTICLE 5 
115.31                     TANF MAINTENANCE OF EFFORT 
115.32                       EXPENDITURE OVERSIGHT
115.33     Section 1.  [3.3006] [TANF MAINTENANCE OF EFFORT 
115.34  EXPENDITURES; EXPENDITURE REVIEW.] 
115.35     Subdivision 1.  [DEFINITIONS.] The definitions in this 
115.36  subdivision apply to this section. 
116.1      (a) "TANF MOE" means the maintenance of effort for the TANF 
116.2   block grant specified under United States Code, title 42, 
116.3   section 609(a)(7). 
116.4      (b) Unless otherwise specified, "commissioner" means the 
116.5   commissioner of human services. 
116.6      Subd. 2.  [TANF MOE EXPENDITURES.] The state's TANF MOE 
116.7   expenditure requirements under section 256J.025 must be met 
116.8   unless the provisions of subdivisions 3 and 4 apply. 
116.9      Subd. 3.  [INTERIM PROCEDURES.] If the commissioner 
116.10  determines that nonfederal expenditures for the programs under 
116.11  section 256J.025 are insufficient to meet TANF MOE expenditure 
116.12  requirements, and if the legislature is not or will not be in 
116.13  session to take timely action to avoid a federal penalty, the 
116.14  commissioner may report nonfederal expenditures from other 
116.15  allowable sources as TANF MOE expenditures after the 
116.16  requirements of subdivision 4 are met. 
116.17     Subd. 4.  [LEGISLATIVE ADVISORY COMMISSION REVIEW.] The 
116.18  commissioner may report nonfederal expenditures in addition to 
116.19  those specified under section 256J.025 as nonfederal TANF MOE 
116.20  expenditures, but only after the commissioner of finance has 
116.21  first submitted the commissioner's recommendations for 
116.22  additional allowable sources of nonfederal TANF MOE expenditures 
116.23  to the members of the legislative advisory commission for their 
116.24  review and recommendation for further review.  If the 
116.25  legislative advisory commission does not act to request further 
116.26  review within ten days, no further review by the legislative 
116.27  advisory commission is required, and the commissioner of finance 
116.28  shall approve or disapprove the additional sources of nonfederal 
116.29  TANF MOE expenditures.  If any member of the commission requests 
116.30  further review of the proposed TANF MOE expenditures, the 
116.31  governor shall submit the commissioner's recommendations to the 
116.32  legislative advisory commission for its review and 
116.33  recommendation.  Failure or refusal of the commission to make a 
116.34  recommendation promptly is a negative recommendation. 
116.35     Subd. 5.  [FORECAST INCLUSION OF INTERIM CHANGES NOT 
116.36  ALLOWED.] The commissioner of finance shall not incorporate any 
117.1   changes in federal TANF expenditures or nonfederal expenditures 
117.2   for TANF MOE that may result from reporting additional allowable 
117.3   sources of nonfederal TANF MOE expenditures under the interim 
117.4   procedures in this section into the February or November 
117.5   forecasts required under section 16A.103, unless the 
117.6   commissioner of finance has approved the additional sources of 
117.7   expenditures under subdivision 4. 
117.8      Sec. 2.  Minnesota Statutes 1999 Supplement, section 
117.9   119B.02, subdivision 1, is amended to read: 
117.10     Subdivision 1.  [CHILD CARE SERVICES.] The commissioner 
117.11  shall develop standards for county and human services boards to 
117.12  provide child care services to enable eligible families to 
117.13  participate in employment, training, or education programs.  
117.14  Within the limits of available appropriations, the commissioner 
117.15  shall distribute money to counties to reduce the costs of child 
117.16  care for eligible families.  The commissioner shall adopt rules 
117.17  to govern the program in accordance with this section.  The 
117.18  rules must establish a sliding schedule of fees for parents 
117.19  receiving child care services.  The rules shall provide that 
117.20  funds received as a lump sum payment of child support arrearages 
117.21  shall not be counted as income to a family in the month received 
117.22  but shall be prorated over the 12 months following receipt and 
117.23  added to the family income during those months.  In the rules 
117.24  adopted under this section, county and human services boards 
117.25  shall be authorized to establish policies for payment of child 
117.26  care spaces for absent children, when the payment is required by 
117.27  the child's regular provider.  The rules shall not set a maximum 
117.28  number of days for which absence payments can be made, but 
117.29  instead shall direct the county agency to set limits and pay for 
117.30  absences according to the prevailing market practice in the 
117.31  county.  County policies for payment of absences shall be 
117.32  subject to the approval of the commissioner.  The commissioner 
117.33  shall maximize the use of federal money under title I and title 
117.34  IV of VI, Public Law Number 104-193, the Personal Responsibility 
117.35  and Work Opportunity Reconciliation Act of 1996, and other 
117.36  programs that provide federal or state reimbursement for child 
118.1   care services for low-income families who are in education, 
118.2   training, job search, or other activities allowed under those 
118.3   programs.  Money appropriated under this section must be 
118.4   coordinated with the programs that provide federal reimbursement 
118.5   for child care services to accomplish this purpose.  Federal 
118.6   reimbursement obtained must be allocated to the county that 
118.7   spent money for child care that is federally reimbursable under 
118.8   programs that provide federal reimbursement for child care 
118.9   services.  The counties shall use the federal money to expand 
118.10  child care services.  The commissioner may adopt rules under 
118.11  chapter 14 to implement and coordinate federal program 
118.12  requirements. 
118.13     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
118.14  256.01, subdivision 2, is amended to read: 
118.15     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
118.16  section 241.021, subdivision 2, the commissioner of human 
118.17  services shall: 
118.18     (1) Administer and supervise all forms of public assistance 
118.19  provided for by state law and other welfare activities or 
118.20  services as are vested in the commissioner.  Administration and 
118.21  supervision of human services activities or services includes, 
118.22  but is not limited to, assuring timely and accurate distribution 
118.23  of benefits, completeness of service, and quality program 
118.24  management.  In addition to administering and supervising human 
118.25  services activities vested by law in the department, the 
118.26  commissioner shall have the authority to: 
118.27     (a) require county agency participation in training and 
118.28  technical assistance programs to promote compliance with 
118.29  statutes, rules, federal laws, regulations, and policies 
118.30  governing human services; 
118.31     (b) monitor, on an ongoing basis, the performance of county 
118.32  agencies in the operation and administration of human services, 
118.33  enforce compliance with statutes, rules, federal laws, 
118.34  regulations, and policies governing welfare services and promote 
118.35  excellence of administration and program operation; 
118.36     (c) develop a quality control program or other monitoring 
119.1   program to review county performance and accuracy of benefit 
119.2   determinations; 
119.3      (d) require county agencies to make an adjustment to the 
119.4   public assistance benefits issued to any individual consistent 
119.5   with federal law and regulation and state law and rule and to 
119.6   issue or recover benefits as appropriate; 
119.7      (e) delay or deny payment of all or part of the state and 
119.8   federal share of benefits and administrative reimbursement 
119.9   according to the procedures set forth in section 256.017; 
119.10     (f) make contracts with and grants to public and private 
119.11  agencies and organizations, both profit and nonprofit, and 
119.12  individuals, using appropriated funds; and 
119.13     (g) enter into contractual agreements with federally 
119.14  recognized Indian tribes with a reservation in Minnesota to the 
119.15  extent necessary for the tribe to operate a federally approved 
119.16  family assistance program or any other program under the 
119.17  supervision of the commissioner.  The commissioner shall consult 
119.18  with the affected county or counties in the contractual 
119.19  agreement negotiations, if the county or counties wish to be 
119.20  included, in order to avoid the duplication of county and tribal 
119.21  assistance program services.  The commissioner may establish 
119.22  necessary accounts for the purposes of receiving and disbursing 
119.23  funds as necessary for the operation of the programs. 
119.24     (2) Inform county agencies, on a timely basis, of changes 
119.25  in statute, rule, federal law, regulation, and policy necessary 
119.26  to county agency administration of the programs. 
119.27     (3) Administer and supervise all child welfare activities; 
119.28  promote the enforcement of laws protecting handicapped, 
119.29  dependent, neglected and delinquent children, and children born 
119.30  to mothers who were not married to the children's fathers at the 
119.31  times of the conception nor at the births of the children; 
119.32  license and supervise child-caring and child-placing agencies 
119.33  and institutions; supervise the care of children in boarding and 
119.34  foster homes or in private institutions; and generally perform 
119.35  all functions relating to the field of child welfare now vested 
119.36  in the state board of control. 
120.1      (4) Administer and supervise all noninstitutional service 
120.2   to handicapped persons, including those who are visually 
120.3   impaired, hearing impaired, or physically impaired or otherwise 
120.4   handicapped.  The commissioner may provide and contract for the 
120.5   care and treatment of qualified indigent children in facilities 
120.6   other than those located and available at state hospitals when 
120.7   it is not feasible to provide the service in state hospitals. 
120.8      (5) Assist and actively cooperate with other departments, 
120.9   agencies and institutions, local, state, and federal, by 
120.10  performing services in conformity with the purposes of Laws 
120.11  1939, chapter 431. 
120.12     (6) Act as the agent of and cooperate with the federal 
120.13  government in matters of mutual concern relative to and in 
120.14  conformity with the provisions of Laws 1939, chapter 431, 
120.15  including the administration of any federal funds granted to the 
120.16  state to aid in the performance of any functions of the 
120.17  commissioner as specified in Laws 1939, chapter 431, and 
120.18  including the promulgation of rules making uniformly available 
120.19  medical care benefits to all recipients of public assistance, at 
120.20  such times as the federal government increases its participation 
120.21  in assistance expenditures for medical care to recipients of 
120.22  public assistance, the cost thereof to be borne in the same 
120.23  proportion as are grants of aid to said recipients. 
120.24     (7) Establish and maintain any administrative units 
120.25  reasonably necessary for the performance of administrative 
120.26  functions common to all divisions of the department. 
120.27     (8) Act as designated guardian of both the estate and the 
120.28  person of all the wards of the state of Minnesota, whether by 
120.29  operation of law or by an order of court, without any further 
120.30  act or proceeding whatever, except as to persons committed as 
120.31  mentally retarded.  For children under the guardianship of the 
120.32  commissioner whose interests would be best served by adoptive 
120.33  placement, the commissioner may contract with a licensed 
120.34  child-placing agency to provide adoption services.  A contract 
120.35  with a licensed child-placing agency must be designed to 
120.36  supplement existing county efforts and may not replace existing 
121.1   county programs, unless the replacement is agreed to by the 
121.2   county board and the appropriate exclusive bargaining 
121.3   representative or the commissioner has evidence that child 
121.4   placements of the county continue to be substantially below that 
121.5   of other counties.  Funds encumbered and obligated under an 
121.6   agreement for a specific child shall remain available until the 
121.7   terms of the agreement are fulfilled or the agreement is 
121.8   terminated. 
121.9      (9) Act as coordinating referral and informational center 
121.10  on requests for service for newly arrived immigrants coming to 
121.11  Minnesota. 
121.12     (10) The specific enumeration of powers and duties as 
121.13  hereinabove set forth shall in no way be construed to be a 
121.14  limitation upon the general transfer of powers herein contained. 
121.15     (11) Establish county, regional, or statewide schedules of 
121.16  maximum fees and charges which may be paid by county agencies 
121.17  for medical, dental, surgical, hospital, nursing and nursing 
121.18  home care and medicine and medical supplies under all programs 
121.19  of medical care provided by the state and for congregate living 
121.20  care under the income maintenance programs. 
121.21     (12) Have the authority to conduct and administer 
121.22  experimental projects to test methods and procedures of 
121.23  administering assistance and services to recipients or potential 
121.24  recipients of public welfare.  To carry out such experimental 
121.25  projects, it is further provided that the commissioner of human 
121.26  services is authorized to waive the enforcement of existing 
121.27  specific statutory program requirements, rules, and standards in 
121.28  one or more counties.  The order establishing the waiver shall 
121.29  provide alternative methods and procedures of administration, 
121.30  shall not be in conflict with the basic purposes, coverage, or 
121.31  benefits provided by law, and in no event shall the duration of 
121.32  a project exceed four years.  It is further provided that no 
121.33  order establishing an experimental project as authorized by the 
121.34  provisions of this section shall become effective until the 
121.35  following conditions have been met: 
121.36     (a) The secretary of health and human services of the 
122.1   United States has agreed, for the same project, to waive state 
122.2   plan requirements relative to statewide uniformity. 
122.3      (b) A comprehensive plan, including estimated project 
122.4   costs, shall be approved by the legislative advisory commission 
122.5   and filed with the commissioner of administration.  
122.6      (13) According to federal requirements, establish 
122.7   procedures to be followed by local welfare boards in creating 
122.8   citizen advisory committees, including procedures for selection 
122.9   of committee members. 
122.10     (14) Allocate federal fiscal disallowances or sanctions 
122.11  which are based on quality control error rates for the aid to 
122.12  families with dependent children program formerly codified in 
122.13  sections 256.72 to 256.87, medical assistance, or food stamp 
122.14  program in the following manner:  
122.15     (a) One-half of the total amount of the disallowance shall 
122.16  be borne by the county boards responsible for administering the 
122.17  programs.  For the medical assistance and the AFDC program 
122.18  formerly codified in sections 256.72 to 256.87, disallowances 
122.19  shall be shared by each county board in the same proportion as 
122.20  that county's expenditures for the sanctioned program are to the 
122.21  total of all counties' expenditures for the AFDC program 
122.22  formerly codified in sections 256.72 to 256.87, and medical 
122.23  assistance programs.  For the food stamp program, sanctions 
122.24  shall be shared by each county board, with 50 percent of the 
122.25  sanction being distributed to each county in the same proportion 
122.26  as that county's administrative costs for food stamps are to the 
122.27  total of all food stamp administrative costs for all counties, 
122.28  and 50 percent of the sanctions being distributed to each county 
122.29  in the same proportion as that county's value of food stamp 
122.30  benefits issued are to the total of all benefits issued for all 
122.31  counties.  Each county shall pay its share of the disallowance 
122.32  to the state of Minnesota.  When a county fails to pay the 
122.33  amount due hereunder, the commissioner may deduct the amount 
122.34  from reimbursement otherwise due the county, or the attorney 
122.35  general, upon the request of the commissioner, may institute 
122.36  civil action to recover the amount due. 
123.1      (b) Notwithstanding the provisions of paragraph (a), if the 
123.2   disallowance results from knowing noncompliance by one or more 
123.3   counties with a specific program instruction, and that knowing 
123.4   noncompliance is a matter of official county board record, the 
123.5   commissioner may require payment or recover from the county or 
123.6   counties, in the manner prescribed in paragraph (a), an amount 
123.7   equal to the portion of the total disallowance which resulted 
123.8   from the noncompliance, and may distribute the balance of the 
123.9   disallowance according to paragraph (a).  
123.10     (15) Develop and implement special projects that maximize 
123.11  reimbursements, other than federal TANF funds, and result in the 
123.12  recovery of money to the state.  For the purpose of recovering 
123.13  state money, the commissioner may enter into contracts with 
123.14  third parties.  Any recoveries that result from projects or 
123.15  contracts entered into under this paragraph shall be deposited 
123.16  in the state treasury and credited to a special account until 
123.17  the balance in the account reaches $1,000,000.  When the balance 
123.18  in the account exceeds $1,000,000, the excess shall be 
123.19  transferred and credited to the general fund.  All money in the 
123.20  account is appropriated to the commissioner for the purposes of 
123.21  this paragraph. 
123.22     (16) Have the authority to make direct payments to 
123.23  facilities providing shelter to women and their children 
123.24  according to section 256D.05, subdivision 3.  Upon the written 
123.25  request of a shelter facility that has been denied payments 
123.26  under section 256D.05, subdivision 3, the commissioner shall 
123.27  review all relevant evidence and make a determination within 30 
123.28  days of the request for review regarding issuance of direct 
123.29  payments to the shelter facility.  Failure to act within 30 days 
123.30  shall be considered a determination not to issue direct payments.
123.31     (17) Have the authority to establish and enforce the 
123.32  following county reporting requirements:  
123.33     (a) The commissioner shall establish fiscal and statistical 
123.34  reporting requirements necessary to account for the expenditure 
123.35  of funds allocated to counties for human services programs.  
123.36  When establishing financial and statistical reporting 
124.1   requirements, the commissioner shall evaluate all reports, in 
124.2   consultation with the counties, to determine if the reports can 
124.3   be simplified or the number of reports can be reduced. 
124.4      (b) The county board shall submit monthly or quarterly 
124.5   reports to the department as required by the commissioner.  
124.6   Monthly reports are due no later than 15 working days after the 
124.7   end of the month.  Quarterly reports are due no later than 30 
124.8   calendar days after the end of the quarter, unless the 
124.9   commissioner determines that the deadline must be shortened to 
124.10  20 calendar days to avoid jeopardizing compliance with federal 
124.11  deadlines or risking a loss of federal funding.  Only reports 
124.12  that are complete, legible, and in the required format shall be 
124.13  accepted by the commissioner.  
124.14     (c) If the required reports are not received by the 
124.15  deadlines established in clause (b), the commissioner may delay 
124.16  payments and withhold funds from the county board until the next 
124.17  reporting period.  When the report is needed to account for the 
124.18  use of federal funds and the late report results in a reduction 
124.19  in federal funding, the commissioner shall withhold from the 
124.20  county boards with late reports an amount equal to the reduction 
124.21  in federal funding until full federal funding is received.  
124.22     (d) A county board that submits reports that are late, 
124.23  illegible, incomplete, or not in the required format for two out 
124.24  of three consecutive reporting periods is considered 
124.25  noncompliant.  When a county board is found to be noncompliant, 
124.26  the commissioner shall notify the county board of the reason the 
124.27  county board is considered noncompliant and request that the 
124.28  county board develop a corrective action plan stating how the 
124.29  county board plans to correct the problem.  The corrective 
124.30  action plan must be submitted to the commissioner within 45 days 
124.31  after the date the county board received notice of noncompliance.
124.32     (e) The final deadline for fiscal reports or amendments to 
124.33  fiscal reports is one year after the date the report was 
124.34  originally due.  If the commissioner does not receive a report 
124.35  by the final deadline, the county board forfeits the funding 
124.36  associated with the report for that reporting period and the 
125.1   county board must repay any funds associated with the report 
125.2   received for that reporting period. 
125.3      (f) The commissioner may not delay payments, withhold 
125.4   funds, or require repayment under paragraph (c) or (e) if the 
125.5   county demonstrates that the commissioner failed to provide 
125.6   appropriate forms, guidelines, and technical assistance to 
125.7   enable the county to comply with the requirements.  If the 
125.8   county board disagrees with an action taken by the commissioner 
125.9   under paragraph (c) or (e), the county board may appeal the 
125.10  action according to sections 14.57 to 14.69. 
125.11     (g) Counties subject to withholding of funds under 
125.12  paragraph (c) or forfeiture or repayment of funds under 
125.13  paragraph (e) shall not reduce or withhold benefits or services 
125.14  to clients to cover costs incurred due to actions taken by the 
125.15  commissioner under paragraph (c) or (e). 
125.16     (18) Allocate federal fiscal disallowances or sanctions for 
125.17  audit exceptions when federal fiscal disallowances or sanctions 
125.18  are based on a statewide random sample for the foster care 
125.19  program under title IV-E of the Social Security Act, United 
125.20  States Code, title 42, in direct proportion to each county's 
125.21  title IV-E foster care maintenance claim for that period. 
125.22     (19) Be responsible for ensuring the detection, prevention, 
125.23  investigation, and resolution of fraudulent activities or 
125.24  behavior by applicants, recipients, and other participants in 
125.25  the human services programs administered by the department. 
125.26     (20) Require county agencies to identify overpayments, 
125.27  establish claims, and utilize all available and cost-beneficial 
125.28  methodologies to collect and recover these overpayments in the 
125.29  human services programs administered by the department. 
125.30     (21) Have the authority to administer a drug rebate program 
125.31  for drugs purchased pursuant to the senior citizen drug program 
125.32  established under section 256.955 after the beneficiary's 
125.33  satisfaction of any deductible established in the program.  The 
125.34  commissioner shall require a rebate agreement from all 
125.35  manufacturers of covered drugs as defined in section 256B.0625, 
125.36  subdivision 13.  For each drug, the amount of the rebate shall 
126.1   be equal to the basic rebate as defined for purposes of the 
126.2   federal rebate program in United States Code, title 42, section 
126.3   1396r-8(c)(1).  This basic rebate shall be applied to 
126.4   single-source and multiple-source drugs.  The manufacturers must 
126.5   provide full payment within 30 days of receipt of the state 
126.6   invoice for the rebate within the terms and conditions used for 
126.7   the federal rebate program established pursuant to section 1927 
126.8   of title XIX of the Social Security Act.  The manufacturers must 
126.9   provide the commissioner with any information necessary to 
126.10  verify the rebate determined per drug.  The rebate program shall 
126.11  utilize the terms and conditions used for the federal rebate 
126.12  program established pursuant to section 1927 of title XIX of the 
126.13  Social Security Act. 
126.14     (22) Operate the department's communication systems account 
126.15  established in Laws 1993, First Special Session chapter 1, 
126.16  article 1, section 2, subdivision 2, to manage shared 
126.17  communication costs necessary for the operation of the programs 
126.18  the commissioner supervises.  A communications account may also 
126.19  be established for each regional treatment center which operates 
126.20  communications systems.  Each account must be used to manage 
126.21  shared communication costs necessary for the operations of the 
126.22  programs the commissioner supervises.  The commissioner may 
126.23  distribute the costs of operating and maintaining communication 
126.24  systems to participants in a manner that reflects actual usage. 
126.25  Costs may include acquisition, licensing, insurance, 
126.26  maintenance, repair, staff time and other costs as determined by 
126.27  the commissioner.  Nonprofit organizations and state, county, 
126.28  and local government agencies involved in the operation of 
126.29  programs the commissioner supervises may participate in the use 
126.30  of the department's communications technology and share in the 
126.31  cost of operation.  The commissioner may accept on behalf of the 
126.32  state any gift, bequest, devise or personal property of any 
126.33  kind, or money tendered to the state for any lawful purpose 
126.34  pertaining to the communication activities of the department.  
126.35  Any money received for this purpose must be deposited in the 
126.36  department's communication systems accounts.  Money collected by 
127.1   the commissioner for the use of communication systems must be 
127.2   deposited in the state communication systems account and is 
127.3   appropriated to the commissioner for purposes of this section. 
127.4      (23) Receive any federal matching money that is made 
127.5   available through the medical assistance program for the 
127.6   consumer satisfaction survey.  Any federal money received for 
127.7   the survey is appropriated to the commissioner for this 
127.8   purpose.  The commissioner may expend the federal money received 
127.9   for the consumer satisfaction survey in either year of the 
127.10  biennium. 
127.11     (24) Incorporate cost reimbursement claims from First Call 
127.12  Minnesota into the federal cost reimbursement claiming processes 
127.13  of the department according to federal law, rule, and 
127.14  regulations.  Any reimbursement received is appropriated to the 
127.15  commissioner and shall be disbursed to First Call Minnesota 
127.16  according to normal department payment schedules. 
127.17     (25) Develop recommended standards for foster care homes 
127.18  that address the components of specialized therapeutic services 
127.19  to be provided by foster care homes with those services. 
127.20     Sec. 4.  Minnesota Statutes 1998, section 256.011, 
127.21  subdivision 3, is amended to read: 
127.22     Subd. 3.  The commissioner of human services shall 
127.23  negotiate with the federal government, or any agency, bureau, or 
127.24  department thereof, for the purpose of securing or obtaining any 
127.25  grants or aids.  Any grants or aids thus secured or received are 
127.26  appropriated to the commissioner of human services and made 
127.27  available for the uses and purposes for which they were received 
127.28  but shall be used to reduce the direct appropriations provided 
127.29  by law unless: 
127.30     (1) federal law prohibits such action; 
127.31     (2) the grants or aids are federal TANF funds; or unless 
127.32     (3) the commissioner of human services obtains approval of 
127.33  the governor who shall seek the advice of the legislative 
127.34  advisory commission. 
127.35     Sec. 5.  Minnesota Statutes 1998, section 256.995, 
127.36  subdivision 1, is amended to read: 
128.1      Subdivision 1.  [PROGRAM ESTABLISHED.] In order to enhance 
128.2   the delivery of needed services to at-risk children and youth 
128.3   and maximize federal funds, other than federal TANF funds, 
128.4   available for that purpose, the commissioners of human services 
128.5   and children, families, and learning shall design a statewide 
128.6   program of collaboration between providers of health and social 
128.7   services for children and local school districts, to be 
128.8   financed, to the greatest extent possible, from federal 
128.9   sources.  The commissioners of health and public safety shall 
128.10  assist the commissioners of human services and children, 
128.11  families, and learning in designing the program. 
128.12     Sec. 6.  [256J.025] [TANF MAINTENANCE OF EFFORT.] 
128.13     Subdivision 1.  [SOURCES OF NONFEDERAL MONEY FOR TANF MOE.] 
128.14  In order to meet the basic maintenance of effort (MOE) 
128.15  requirements of the TANF block grant specified under United 
128.16  States Code, title 42, section 609(a)(7), the commissioner may 
128.17  only report nonfederal money expended for allowable activities 
128.18  listed in the following clauses as TANF MOE expenditures: 
128.19     (1) MFIP cash and food assistance benefits under this 
128.20  chapter; 
128.21     (2) the child care assistance programs under sections 
128.22  119B.03 and 119B.05, and county child care administrative costs 
128.23  under section 119B.15; 
128.24     (3) state and county MFIP administrative costs under this 
128.25  chapter and chapter 256K; 
128.26     (4) state, county, and tribal MFIP employment services 
128.27  under this chapter and chapter 256K; 
128.28     (5) expenditures made on behalf of noncitizen MFIP 
128.29  recipients who qualify for the medical assistance without 
128.30  federal financial participation program under section 256B.06, 
128.31  subdivision 4, paragraphs (d), (e), and (j); 
128.32     (6) for fiscal years 2000 and 2001, allowable state 
128.33  expenditures from the working family credit under section 
128.34  290.0671 may be reported as specified in the provision in 
128.35  article 1, section 2, subdivision 7, related to claiming working 
128.36  family credit expenditures as TANF MOE; and 
129.1      (7) for fiscal years 2001 to 2003 only, allowable state 
129.2   expenditures for family preservation services under chapter 256F 
129.3   may be reported in amounts equal to the state share of the 
129.4   amounts distributed to individuals under section 256.741, 
129.5   subdivision 15. 
129.6      Subd. 2.  [SUFFICIENT QUALIFIED STATE EXPENDITURES REQUIRED 
129.7   ANNUALLY.] (a) The commissioner shall ensure that sufficient 
129.8   qualified nonfederal expenditures are made each year to meet the 
129.9   state's TANF MOE requirements.  For the activities listed in 
129.10  subdivision 1, clauses (2) to (6), the commissioner may only 
129.11  report expenditures that are excluded from the definition of 
129.12  assistance under Code of Federal Regulations, title 45, section 
129.13  260.31.  If nonfederal expenditures for the programs and 
129.14  purposes listed in subdivision 1 are insufficient to meet the 
129.15  state's TANF MOE requirements, the commissioner shall recommend 
129.16  additional allowable sources of nonfederal expenditures to the 
129.17  legislature, if the legislature is or will be in session to take 
129.18  action to specify additional sources of nonfederal expenditures 
129.19  for TANF MOE before a federal penalty is imposed.  The 
129.20  commissioner shall otherwise provide recommendations to the 
129.21  legislative advisory commission under section 3.3006. 
129.22     (b) If the commissioner uses authority granted under Laws 
129.23  1999, chapter 245, article 1, section 10, or similar authority 
129.24  granted by a subsequent legislature, to meet the state's TANF 
129.25  MOE requirements in a reporting period, the commissioner shall 
129.26  inform the chairs of the appropriate legislative committees 
129.27  about all transfers made under that authority for this purpose. 
129.28     Sec. 7.  Minnesota Statutes 1998, section 256J.08, is 
129.29  amended by adding a subdivision to read: 
129.30     Subd. 84a.  [TANF MOE.] "TANF MOE" means the maintenance of 
129.31  effort for the TANF block grant specified under United States 
129.32  Code, title 42, section 609(a)(7). 
129.33     Sec. 8.  Laws 1999, chapter 245, article 1, section 2, 
129.34  subdivision 10, is amended to read: 
129.35  Subd. 10.  Economic Support Grants
129.36  General             142,037,000   124,758,000
130.1   [GIFTS.] Notwithstanding Minnesota 
130.2   Statutes, chapter 7, the commissioner 
130.3   may accept on behalf of the state 
130.4   additional funding from sources other 
130.5   than state funds for the purpose of 
130.6   financing the cost of assistance 
130.7   program grants or nongrant 
130.8   administration.  All additional funding 
130.9   is appropriated to the commissioner for 
130.10  use as designated by the grantee of 
130.11  funding. 
130.12  [CHILD SUPPORT PAYMENT CENTER 
130.13  RECOUPMENT ACCOUNT.] The child support 
130.14  payment center is authorized to 
130.15  establish an account to cover checks 
130.16  issued in error or in cases where 
130.17  insufficient funds are available to pay 
130.18  the checks.  All recoupments against 
130.19  payments from the account must be 
130.20  deposited in the child support payment 
130.21  center recoupment account and are 
130.22  appropriated to the commissioner for 
130.23  the purposes of the account.  Any 
130.24  unexpended balance in the account does 
130.25  not cancel, but is available until 
130.26  expended. 
130.27  [FEDERAL TANF FUNDS.] (1) Federal 
130.28  Temporary Assistance for Needy Families 
130.29  block grant funds authorized under 
130.30  title I, Public Law Number 104-193, the 
130.31  Personal Responsibility and Work 
130.32  Opportunity Reconciliation Act of 1996, 
130.33  and awarded in federal fiscal years 
130.34  1997 to 2002 are appropriated to the 
130.35  commissioner in amounts up to 
130.36  $256,265,000 is fiscal year 2000 and 
130.37  $249,682,000 in fiscal year 2001.  In 
130.38  addition to these funds, the 
130.39  commissioner may draw or transfer any 
130.40  other appropriations or transfers of 
130.41  federal TANF block grant funds that are 
130.42  enacted into state law. 
130.43  (2) Of the amounts in clause (1), 
130.44  $15,000,000 is transferred each year of 
130.45  the biennium to the state's federal 
130.46  Title XX block grant.  Notwithstanding 
130.47  the provisions of Minnesota Statutes, 
130.48  section 256E.07, in each year of the 
130.49  biennium the commissioner shall 
130.50  allocate $15,000,000 of the state's 
130.51  Title XX block grant funds based on the 
130.52  community social services aids formula 
130.53  in Minnesota Statutes, section 
130.54  256E.06.  The commissioner shall ensure 
130.55  that money allocated to counties under 
130.56  this provision is used according to the 
130.57  requirements of United States Code, 
130.58  title 42, section 604(d)(3)(B).  
130.59  (3) Of the amounts in clause (1), 
130.60  $10,990,000 is transferred each year 
130.61  from the state's federal TANF block 
130.62  grant to the state's federal Title XX 
130.63  block grant.  In each year $140,000 is 
130.64  for grants according to Minnesota 
130.65  Statutes, section 257.3571, subdivision 
130.66  2a, to the Indian child welfare defense 
130.67  corporation to promote statewide 
131.1   compliance with the Indian Child 
131.2   Welfare Act of 1978; $4,650,000 is for 
131.3   grants to counties for concurrent 
131.4   permanency planning; and $6,200,000 is 
131.5   for the commissioner to distribute 
131.6   according to the formula in Minnesota 
131.7   Statutes, section 256E.07.  The 
131.8   commissioner shall ensure that money 
131.9   allocated under this clause is used 
131.10  according to the requirements of United 
131.11  States Code, title 42, section 
131.12  604(d)(3)(B).  In fiscal years 2002 and 
131.13  2003, $140,000 per year is for grants 
131.14  according to Minnesota Statutes, 
131.15  section 257.3571, subdivision 2a, to 
131.16  the Indian child welfare defense 
131.17  corporation to promote statewide 
131.18  compliance with the Indian Child 
131.19  Welfare Act of 1978.  Section 13, 
131.20  sunset of uncodified language, does not 
131.21  apply to this provision. 
131.22  (4) Of the amounts in clause (1), 
131.23  $13,360,000 each year is for increased 
131.24  employment and training efforts and 
131.25  shall be expended as follows: 
131.26  (a) $140,000 each year is for a grant 
131.27  to the new chance program.  The new 
131.28  chance program shall provide 
131.29  comprehensive services through a 
131.30  private, nonprofit agency to young 
131.31  parents in Hennepin county who have 
131.32  dropped out of school and are receiving 
131.33  public assistance.  The program 
131.34  administrator shall report annually to 
131.35  the commissioner on skills development, 
131.36  education, job training, and job 
131.37  placement outcomes for program 
131.38  participants.  This appropriation is 
131.39  available for either year of the 
131.40  biennium. 
131.41  (b) $260,000 each year is for grants to 
131.42  counties to operate the parents fair 
131.43  share program to assist unemployed, 
131.44  noncustodial parents with job search 
131.45  and parenting skills. 
131.46  (c) $12,960,000 each year is to 
131.47  increase employment and training 
131.48  services grants for MFIP of which 
131.49  $750,000 each year is to be transferred 
131.50  to the job skills partnership board for 
131.51  the health care and human services 
131.52  worker training and retention program. 
131.53  (d) $10,400,000 of these appropriations 
131.54  shall become part of the base for the 
131.55  2002-2003 biennium. 
131.56  (5) Of the amounts in clause (1), 
131.57  $1,094,000 in fiscal year 2000 and 
131.58  $1,676,000 in fiscal year 2001 is 
131.59  transferred from the state's federal 
131.60  TANF block grant to the state's federal 
131.61  child care and development fund block 
131.62  grant, and is appropriated to the 
131.63  commissioner of children, families, and 
131.64  learning for the purposes of Minnesota 
131.65  Statutes, section 119B.05. 
132.1   (6) Of the amounts in clause (1), 
132.2   $1,000,000 for the biennium is for the 
132.3   purposes of creating and expanding 
132.4   adult-supervised supportive living 
132.5   arrangement services under Minnesota 
132.6   Statutes, section 256J.14.  The 
132.7   commissioner shall request proposals 
132.8   from interested parties that have 
132.9   knowledge and experience in the area of 
132.10  adult-supervised adolescent housing and 
132.11  supportive services, and award grants 
132.12  for the purpose of either expanding 
132.13  existing or creating new living 
132.14  arrangements and supportive services.  
132.15  Minor parents who are MFIP participants 
132.16  shall be given priority for housing, 
132.17  and excess living arrangements may be 
132.18  used by minor parents who are not MFIP 
132.19  participants. 
132.20  (7) In order to maximize transfers from 
132.21  Minnesota's 1998 and 1999 federal TANF 
132.22  block grant awards, the commissioner 
132.23  may implement the transfers of TANF 
132.24  funds in clauses (2), (3), and (5) in 
132.25  the first year of the biennium.  This 
132.26  must only be done to the extent allowed 
132.27  by federal law and to the extent that 
132.28  program funding requirements can be met 
132.29  in the second year of the biennium. 
132.30  (8) The commissioner shall ensure that 
132.31  sufficient qualified state expenditures 
132.32  are made each year to meet the TANF 
132.33  basic maintenance of effort 
132.34  requirements.  The commissioner may 
132.35  apply any allowable source of state 
132.36  expenditures toward these requirements, 
132.37  as necessary to meet minimum basic 
132.38  maintenance of effort requirements and 
132.39  to prevent the loss of federal funds. 
132.40  [WORKER TRAINING AND RETENTION 
132.41  ELIGIBILITY PROCEDURES.] The 
132.42  commissioner shall develop eligibility 
132.43  procedures for TANF expenditures under 
132.44  Minnesota Statutes, section 256J.02, 
132.45  subdivision 2, clause (5). 
132.46  The amounts that may be spent from this 
132.47  appropriation for each purpose are as 
132.48  follows: 
132.49  (a) Assistance to Families Grants
132.50  General              64,870,000    66,117,000
132.51  [EMPLOYMENT SERVICES CARRYOVER.] 
132.52  General fund and federal TANF block 
132.53  grant appropriations for employment 
132.54  services that remain unexpended 
132.55  subsequent to the reallocation process 
132.56  required in Minnesota Statutes, section 
132.57  256J.62, do not cancel but are 
132.58  available for these purposes in fiscal 
132.59  year 2001. 
132.60  (b) Work Grants              
132.61  General              10,731,000    10,731,000
133.1   (c) Aid to Families With     
133.2   Dependent Children and Other
133.3   Assistance
133.4   General               1,053,000       374,000
133.5   (d) Child Support Enforcement
133.6   General               5,359,000     5,359,000
133.7   [CHILD SUPPORT PAYMENT CENTER.] 
133.8   Payments to the commissioner from other 
133.9   governmental units, private 
133.10  enterprises, and individuals for 
133.11  services performed by the child support 
133.12  payment center must be deposited in the 
133.13  state systems account authorized under 
133.14  Minnesota Statutes, section 256.014.  
133.15  These payments are appropriated to the 
133.16  commissioner for the operation of the 
133.17  child support payment center or system, 
133.18  according to Minnesota Statutes, 
133.19  section 256.014. 
133.20  [CHILD SUPPORT EXPEDITED PROCESS.] Of 
133.21  this appropriation for child support 
133.22  enforcement, $2,340,000 for the 
133.23  biennium shall be transferred to the 
133.24  state court administrator to fund the 
133.25  child support expedited process, in 
133.26  accordance with a cooperative agreement 
133.27  to be negotiated between the parties.  
133.28  State funds transferred for this 
133.29  purpose in fiscal year 2000 may exceed 
133.30  the base funding amount of $1,170,000 
133.31  to the extent that there is an increase 
133.32  in the number of orders issued in the 
133.33  expedited process, but may not exceed 
133.34  $1,420,000 in any case.  Unexpended 
133.35  expedited process appropriations in 
133.36  fiscal year 2000 may be transferred to 
133.37  fiscal year 2001 for this purpose.  
133.38  Base funding for this program is set at 
133.39  $1,170,000 for each year of the 
133.40  2002-2003 biennium.  The commissioner 
133.41  shall include cost reimbursement claims 
133.42  from the state court administrator for 
133.43  the child support expedited process in 
133.44  the department of human services 
133.45  federal cost reimbursement claim 
133.46  process according to federal law.  
133.47  Federal dollars earned under these 
133.48  claims are appropriated to the 
133.49  commissioner and shall be disbursed to 
133.50  the state court administrator according 
133.51  to department procedures and schedules. 
133.52  (e) General Assistance
133.53  General              33,927,000    14,973,000
133.54  [TRANSFERS FROM STATE TANF RESERVE.] 
133.55  $4,666,000 in fiscal year 2000 is 
133.56  transferred from the state TANF reserve 
133.57  account to the general fund. 
133.58  [GENERAL ASSISTANCE STANDARD.] The 
133.59  commissioner shall set the monthly 
133.60  standard of assistance for general 
133.61  assistance units consisting of an adult 
133.62  recipient who is childless and 
134.1   unmarried or living apart from his or 
134.2   her parents or a legal guardian at 
134.3   $203.  The commissioner may reduce this 
134.4   amount in accordance with Laws 1997, 
134.5   chapter 85, article 3, section 54. 
134.6   (f) Minnesota Supplemental Aid
134.7   General              25,767,000    26,874,000
134.8   (g) Refugee Services         
134.9   General                 330,000       330,000
134.10     Sec. 9.  [EFFECTIVE DATE.] 
134.11     Sections 1 to 8 are effective the day following final 
134.12  enactment. 
134.13                             ARTICLE 6 
134.14                           MISCELLANEOUS 
134.15     Section 1.  [198.37] [TRANSITIONAL HOUSING.] 
134.16     The board may establish programs, using available federal 
134.17  funding, to assist homeless or disabled veterans on the campuses 
134.18  of the veterans homes.  The board may use federal grant money 
134.19  for the Hastings veterans home to purchase a single-family 
134.20  dwelling, make necessary repairs and improvements with the help 
134.21  of the department of administration, and operate the program.  
134.22  Nonfederal funds may not be used to establish or continue these 
134.23  programs. 
134.24                             ARTICLE 7 
134.25                       TECHNICAL CORRECTIONS 
134.26     Section 1.  Minnesota Statutes 1999 Supplement, section 
134.27  62J.535, subdivision 2, is amended to read: 
134.28     Subd. 2.  [COMPLIANCE.] (a) Concurrent with the effective 
134.29  dates date of required compliance established under United 
134.30  States Code, title 42, sections 1320d to 1320d-8, as amended 
134.31  from time to time, for uniform electronic billing standards, all 
134.32  health care providers must conform to the uniform billing 
134.33  standards developed under subdivision 1. 
134.34     (b) Notwithstanding paragraph (a), the requirements for the 
134.35  uniform remittance advice report shall be effective 12 months 
134.36  after the date of the required compliance of the standards for 
134.37  the electronic remittance advice transaction are effective under 
134.38  United States Code, title 42, sections 1320d to 1320d-8, as 
135.1   amended from time to time. 
135.2      <b>EFFECTIVE DATE:</b>  This section is effective the day 
135.3   following final enactment. 
135.4      Sec. 2.  Minnesota Statutes 1998, section 125A.74, 
135.5   subdivision 1, is amended to read: 
135.6      Subdivision 1.  [ELIGIBILITY.] A district may enroll as a 
135.7   provider in the medical assistance program and receive medical 
135.8   assistance payments for covered special education services 
135.9   provided to persons eligible for medical assistance under 
135.10  chapter 256B.  To receive medical assistance payments, the 
135.11  district must pay the nonfederal share of medical assistance 
135.12  services provided according to section 256B.0625, subdivision 
135.13  26, and comply with relevant provisions of state and federal 
135.14  statutes and regulations governing the medical assistance 
135.15  program. 
135.16     Sec. 3.  Minnesota Statutes 1998, section 125A.74, 
135.17  subdivision 2, is amended to read: 
135.18     Subd. 2.  [FUNDING.] A district that provides a covered 
135.19  service to an eligible person and complies with relevant 
135.20  requirements of the medical assistance program is entitled to 
135.21  receive payment for the service provided, including that portion 
135.22  of the payment services that will subsequently be reimbursed by 
135.23  the federal government, in the same manner as other medical 
135.24  assistance providers.  The school district is not required to 
135.25  provide matching funds or pay part of the costs of the service, 
135.26  as long as the rate charged for the service does not exceed 
135.27  medical assistance limits that apply to all medical assistance 
135.28  providers. 
135.29     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
135.30  144.395, is amended by adding a subdivision to read: 
135.31     Subd. 3.  [SUNSET.] The tobacco use prevention and local 
135.32  public health endowment fund expires June 30, 2015.  Upon 
135.33  expiration, the commissioner of finance shall transfer the 
135.34  principal and any remaining interest to the general fund.  
135.35     <b>EFFECTIVE DATE:</b>  This section is effective the day 
135.36  following final enactment. 
136.1      Sec. 5.  Minnesota Statutes 1999 Supplement, section 
136.2   144.396, subdivision 11, is amended to read: 
136.3      Subd. 11.  [AUDITS REQUIRED.] The legislative auditor shall 
136.4   audit tobacco use prevention and local public health endowment 
136.5   fund expenditures to ensure that the money is spent for tobacco 
136.6   use prevention measures and public health initiatives.  
136.7      <b>EFFECTIVE DATE:</b>  This section is effective the day 
136.8   following final enactment. 
136.9      Sec. 6.  Minnesota Statutes 1999 Supplement, section 
136.10  144.396, subdivision 12, is amended to read: 
136.11     Subd. 12.  [ENDOWMENT FUND NOT TO SUPPLANT EXISTING 
136.12  FUNDING.] Appropriations from the account tobacco use prevention 
136.13  and local public health endowment fund must not be used as a 
136.14  substitute for traditional sources of funding tobacco use 
136.15  prevention activities or public health initiatives.  Any local 
136.16  unit of government receiving money under this section must 
136.17  ensure that existing local financial efforts remain in place.  
136.18     <b>EFFECTIVE DATE:</b>  This section is effective the day 
136.19  following final enactment. 
136.20     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
136.21  256B.0916, subdivision 1, is amended to read: 
136.22     Subdivision 1.  [REDUCTION OF WAITING LIST.] (a) The 
136.23  legislature recognizes that as of January 1, 1999, 3,300 persons 
136.24  with mental retardation or related conditions have been screened 
136.25  and determined eligible for the home and community-based waiver 
136.26  services program for persons with mental retardation or related 
136.27  conditions.  Many wait for several years before receiving 
136.28  service. 
136.29     (b) The waiting list for this program shall be reduced or 
136.30  eliminated by June 30, 2003.  In order to reduce the number of 
136.31  eligible persons waiting for identified services provided 
136.32  through the home and community-based waiver for persons with 
136.33  mental retardation or related conditions, during the period from 
136.34  July 1, 1999, to June 30, 2003, funding shall be increased to 
136.35  add 100 additional eligible persons each year beyond the 
136.36  February 1999 medical assistance forecast. 
137.1      (c) The commissioner shall allocate resources in such a 
137.2   manner as to use all resources budgeted for the home and 
137.3   community-based waiver for persons with mental retardation or 
137.4   related conditions according to the priorities listed in 
137.5   subdivision 2, paragraph (b), and then to serve other persons on 
137.6   the waiting list.  Resources allocated for a fiscal year to 
137.7   serve persons affected by public and private sector ICF/MR 
137.8   closures, but not expected to be expended for that purpose, must 
137.9   be reallocated within that fiscal year to serve other persons on 
137.10  the waiting list, and the number of waiver diversion slots shall 
137.11  be adjusted accordingly. 
137.12     (d) For fiscal year 2001, at least one-half of the increase 
137.13  in funding over the previous year provided in the February 1999 
137.14  medical assistance forecast for the home and community-based 
137.15  waiver for persons with mental retardation and related 
137.16  conditions, including changes made by the 1999 legislature, must 
137.17  be used to serve persons who are not affected by public and 
137.18  private sector ICF/MR closures. 
137.19     <b>EFFECTIVE DATE:</b>  This section is effective the day 
137.20  following final enactment. 
137.21     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
137.22  256D.03, subdivision 4, is amended to read: 
137.23     Subd. 4.  [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] (a) 
137.24  For a person who is eligible under subdivision 3, paragraph (a), 
137.25  clause (3), general assistance medical care covers, except as 
137.26  provided in paragraph (c): 
137.27     (1) inpatient hospital services; 
137.28     (2) outpatient hospital services; 
137.29     (3) services provided by Medicare certified rehabilitation 
137.30  agencies; 
137.31     (4) prescription drugs and other products recommended 
137.32  through the process established in section 256B.0625, 
137.33  subdivision 13; 
137.34     (5) equipment necessary to administer insulin and 
137.35  diagnostic supplies and equipment for diabetics to monitor blood 
137.36  sugar level; 
138.1      (6) eyeglasses and eye examinations provided by a physician 
138.2   or optometrist; 
138.3      (7) hearing aids; 
138.4      (8) prosthetic devices; 
138.5      (9) laboratory and X-ray services; 
138.6      (10) physician's services; 
138.7      (11) medical transportation; 
138.8      (12) chiropractic services as covered under the medical 
138.9   assistance program; 
138.10     (13) podiatric services; 
138.11     (14) dental services; 
138.12     (15) outpatient services provided by a mental health center 
138.13  or clinic that is under contract with the county board and is 
138.14  established under section 245.62; 
138.15     (16) day treatment services for mental illness provided 
138.16  under contract with the county board; 
138.17     (17) prescribed medications for persons who have been 
138.18  diagnosed as mentally ill as necessary to prevent more 
138.19  restrictive institutionalization; 
138.20     (18) psychological services, medical supplies and 
138.21  equipment, and Medicare premiums, coinsurance and deductible 
138.22  payments; 
138.23     (19) medical equipment not specifically listed in this 
138.24  paragraph when the use of the equipment will prevent the need 
138.25  for costlier services that are reimbursable under this 
138.26  subdivision; 
138.27     (20) services performed by a certified pediatric nurse 
138.28  practitioner, a certified family nurse practitioner, a certified 
138.29  adult nurse practitioner, a certified obstetric/gynecological 
138.30  nurse practitioner, a certified neonatal nurse practitioner, or 
138.31  a certified geriatric nurse practitioner in independent 
138.32  practice, if (1) the service is otherwise covered under this 
138.33  chapter as a physician service, (2) a the service provided on an 
138.34  inpatient basis is not included as part of the cost for 
138.35  inpatient services included in the operating payment rate, and 
138.36  (3) the service is within the scope of practice of the nurse 
139.1   practitioner's license as a registered nurse, as defined in 
139.2   section 148.171; 
139.3      (21) services of a certified public health nurse or a 
139.4   registered nurse practicing in a public health nursing clinic 
139.5   that is a department of, or that operates under the direct 
139.6   authority of, a unit of government, if the service is within the 
139.7   scope of practice of the public health nurse's license as a 
139.8   registered nurse, as defined in section 148.171; and 
139.9      (22) telemedicine consultations, to the extent they are 
139.10  covered under section 256B.0625, subdivision 3b.  
139.11     (b) Except as provided in paragraph (c), for a recipient 
139.12  who is eligible under subdivision 3, paragraph (a), clause (1) 
139.13  or (2), general assistance medical care covers the services 
139.14  listed in paragraph (a) with the exception of special 
139.15  transportation services. 
139.16     (c) Gender reassignment surgery and related services are 
139.17  not covered services under this subdivision unless the 
139.18  individual began receiving gender reassignment services prior to 
139.19  July 1, 1995.  
139.20     (d) In order to contain costs, the commissioner of human 
139.21  services shall select vendors of medical care who can provide 
139.22  the most economical care consistent with high medical standards 
139.23  and shall where possible contract with organizations on a 
139.24  prepaid capitation basis to provide these services.  The 
139.25  commissioner shall consider proposals by counties and vendors 
139.26  for prepaid health plans, competitive bidding programs, block 
139.27  grants, or other vendor payment mechanisms designed to provide 
139.28  services in an economical manner or to control utilization, with 
139.29  safeguards to ensure that necessary services are provided.  
139.30  Before implementing prepaid programs in counties with a county 
139.31  operated or affiliated public teaching hospital or a hospital or 
139.32  clinic operated by the University of Minnesota, the commissioner 
139.33  shall consider the risks the prepaid program creates for the 
139.34  hospital and allow the county or hospital the opportunity to 
139.35  participate in the program in a manner that reflects the risk of 
139.36  adverse selection and the nature of the patients served by the 
140.1   hospital, provided the terms of participation in the program are 
140.2   competitive with the terms of other participants considering the 
140.3   nature of the population served.  Payment for services provided 
140.4   pursuant to this subdivision shall be as provided to medical 
140.5   assistance vendors of these services under sections 256B.02, 
140.6   subdivision 8, and 256B.0625.  For payments made during fiscal 
140.7   year 1990 and later years, the commissioner shall consult with 
140.8   an independent actuary in establishing prepayment rates, but 
140.9   shall retain final control over the rate methodology.  
140.10  Notwithstanding the provisions of subdivision 3, an individual 
140.11  who becomes ineligible for general assistance medical care 
140.12  because of failure to submit income reports or recertification 
140.13  forms in a timely manner, shall remain enrolled in the prepaid 
140.14  health plan and shall remain eligible for general assistance 
140.15  medical care coverage through the last day of the month in which 
140.16  the enrollee became ineligible for general assistance medical 
140.17  care. 
140.18     (e) The commissioner of human services may reduce payments 
140.19  provided under sections 256D.01 to 256D.21 and 261.23 in order 
140.20  to remain within the amount appropriated for general assistance 
140.21  medical care, within the following restrictions: 
140.22     (i) For the period July 1, 1985 to December 31, 1985, 
140.23  reductions below the cost per service unit allowable under 
140.24  section 256.966, are permitted only as follows:  payments for 
140.25  inpatient and outpatient hospital care provided in response to a 
140.26  primary diagnosis of chemical dependency or mental illness may 
140.27  be reduced no more than 30 percent; payments for all other 
140.28  inpatient hospital care may be reduced no more than 20 percent.  
140.29  Reductions below the payments allowable under general assistance 
140.30  medical care for the remaining general assistance medical care 
140.31  services allowable under this subdivision may be reduced no more 
140.32  than ten percent. 
140.33     (ii) For the period January 1, 1986 to December 31, 1986, 
140.34  reductions below the cost per service unit allowable under 
140.35  section 256.966 are permitted only as follows:  payments for 
140.36  inpatient and outpatient hospital care provided in response to a 
141.1   primary diagnosis of chemical dependency or mental illness may 
141.2   be reduced no more than 20 percent; payments for all other 
141.3   inpatient hospital care may be reduced no more than 15 percent.  
141.4   Reductions below the payments allowable under general assistance 
141.5   medical care for the remaining general assistance medical care 
141.6   services allowable under this subdivision may be reduced no more 
141.7   than five percent. 
141.8      (iii) For the period January 1, 1987 to June 30, 1987, 
141.9   reductions below the cost per service unit allowable under 
141.10  section 256.966 are permitted only as follows:  payments for 
141.11  inpatient and outpatient hospital care provided in response to a 
141.12  primary diagnosis of chemical dependency or mental illness may 
141.13  be reduced no more than 15 percent; payments for all other 
141.14  inpatient hospital care may be reduced no more than ten 
141.15  percent.  Reductions below the payments allowable under medical 
141.16  assistance for the remaining general assistance medical care 
141.17  services allowable under this subdivision may be reduced no more 
141.18  than five percent.  
141.19     (iv) For the period July 1, 1987 to June 30, 1988, 
141.20  reductions below the cost per service unit allowable under 
141.21  section 256.966 are permitted only as follows:  payments for 
141.22  inpatient and outpatient hospital care provided in response to a 
141.23  primary diagnosis of chemical dependency or mental illness may 
141.24  be reduced no more than 15 percent; payments for all other 
141.25  inpatient hospital care may be reduced no more than five percent.
141.26  Reductions below the payments allowable under medical assistance 
141.27  for the remaining general assistance medical care services 
141.28  allowable under this subdivision may be reduced no more than 
141.29  five percent. 
141.30     (v) For the period July 1, 1988 to June 30, 1989, 
141.31  reductions below the cost per service unit allowable under 
141.32  section 256.966 are permitted only as follows:  payments for 
141.33  inpatient and outpatient hospital care provided in response to a 
141.34  primary diagnosis of chemical dependency or mental illness may 
141.35  be reduced no more than 15 percent; payments for all other 
141.36  inpatient hospital care may not be reduced.  Reductions below 
142.1   the payments allowable under medical assistance for the 
142.2   remaining general assistance medical care services allowable 
142.3   under this subdivision may be reduced no more than five percent. 
142.4      (f) There shall be no copayment required of any recipient 
142.5   of benefits for any services provided under this subdivision.  A 
142.6   hospital receiving a reduced payment as a result of this section 
142.7   may apply the unpaid balance toward satisfaction of the 
142.8   hospital's bad debts. 
142.9      (g) (f) Any county may, from its own resources, provide 
142.10  medical payments for which state payments are not made. 
142.11     (h) (g) Chemical dependency services that are reimbursed 
142.12  under chapter 254B must not be reimbursed under general 
142.13  assistance medical care. 
142.14     (i) (h) The maximum payment for new vendors enrolled in the 
142.15  general assistance medical care program after the base year 
142.16  shall be determined from the average usual and customary charge 
142.17  of the same vendor type enrolled in the base year. 
142.18     (j) (i) The conditions of payment for services under this 
142.19  subdivision are the same as the conditions specified in rules 
142.20  adopted under chapter 256B governing the medical assistance 
142.21  program, unless otherwise provided by statute or rule. 
142.22     <b>EFFECTIVE DATE:</b>  This section is effective the day 
142.23  following final enactment. 
142.24     Sec. 9.  Laws 1999, chapter 245, article 1, section 2, 
142.25  subdivision 5, is amended to read: 
142.26  Subd. 5.  Basic Health Care Grants
142.27                Summary by Fund
142.28  General             867,174,000   916,234,000
142.29  Health Care
142.30  Access              116,490,000   145,469,000
142.31  The amounts that may be spent from this 
142.32  appropriation for each purpose are as 
142.33  follows: 
142.34  (a) Minnesota Care Grants-
142.35  Health Care
142.36  Access              116,490,000   145,469,000
142.37  [HOSPITAL INPATIENT COPAYMENTS.] The 
142.38  commissioner of human services may 
142.39  require hospitals to refund hospital 
142.40  inpatient copayments paid by enrollees 
143.1   pursuant to Minnesota Statutes, section 
143.2   256L.03, subdivision 5, between March 
143.3   1, 1999, and December 31, 1999.  If the 
143.4   commissioner requires hospitals to 
143.5   refund these copayments, the hospitals 
143.6   shall collect the copayment directly 
143.7   from the commissioner. 
143.8   [MINNESOTACARE OUTREACH FEDERAL 
143.9   MATCHING FUNDS.] Any federal matching 
143.10  funds received as a result of the 
143.11  MinnesotaCare outreach activities 
143.12  authorized by Laws 1997, chapter 225, 
143.13  article 7, section 2, subdivision 1, 
143.14  shall be deposited in the health care 
143.15  access fund and dedicated to the 
143.16  commissioner to be used for those 
143.17  outreach purposes. 
143.18  [FEDERAL RECEIPTS FOR ADMINISTRATION.] 
143.19  Receipts received as a result of 
143.20  federal participation pertaining to 
143.21  administrative costs of the Minnesota 
143.22  health care reform waiver shall be 
143.23  deposited as nondedicated revenue in 
143.24  the health care access fund.  Receipts 
143.25  received as a result of federal 
143.26  participation pertaining to grants 
143.27  shall be deposited in the federal fund 
143.28  and shall offset health care access 
143.29  funds for payments to providers. 
143.30  [HEALTH CARE ACCESS FUND.] The 
143.31  commissioner may expend money 
143.32  appropriated from the health care 
143.33  access fund for MinnesotaCare in either 
143.34  fiscal year of the biennium. 
143.35  (b) MA Basic Health Care Grants-
143.36  Families and Children
143.37  General             307,053,000   320,112,000
143.38  [COMMUNITY DENTAL CLINICS.] Of this 
143.39  appropriation, $600,000 in fiscal year 
143.40  2000 is for the commissioner to provide 
143.41  start-up grants to establish community 
143.42  dental clinics under Minnesota 
143.43  Statutes, section 256B.76, paragraph 
143.44  (b), clause (5) (4).  The commissioner 
143.45  shall award grants and shall require 
143.46  grant recipients to match the state 
143.47  grant with nonstate funding on a 
143.48  one-to-one basis.  This is a one-time 
143.49  appropriation and shall not become part 
143.50  of base level funding for this activity 
143.51  for the 2002-2003 biennium. 
143.52  (c) MA Basic Health Care Grants- 
143.53  Elderly & Disabled
143.54  General             404,814,000   451,928,000
143.55  [SURCHARGE COMPLIANCE.] In the event 
143.56  that federal financial participation in 
143.57  the Minnesota medical assistance 
143.58  program is reduced as a result of a 
143.59  determination that the surcharge and 
143.60  intergovernmental transfers governed by 
143.61  Minnesota Statutes, sections 256.9657 
143.62  and 256B.19 are out of compliance with 
144.1   United States Code, title 42, section 
144.2   1396b(w), or its implementing 
144.3   regulations or with any other federal 
144.4   law designed to restrict provider tax 
144.5   programs or intergovernmental 
144.6   transfers, the commissioner shall 
144.7   appeal the determination to the fullest 
144.8   extent permitted by law and may ratably 
144.9   reduce all medical assistance and 
144.10  general assistance medical care 
144.11  payments to providers other than the 
144.12  state of Minnesota in order to 
144.13  eliminate any shortfall resulting from 
144.14  the reduced federal funding.  Any 
144.15  amount later recovered through the 
144.16  appeals process shall be used to 
144.17  reimburse providers for any ratable 
144.18  reductions taken. 
144.19  [BLOOD PRODUCTS LITIGATION.] To the 
144.20  extent permitted by federal law, 
144.21  Minnesota Statutes, section 256.015, 
144.22  256B.042, and 256B.15, are waived as 
144.23  necessary for the limited purpose of 
144.24  resolving the state's claims in 
144.25  connection with In re Factor VIII or IX 
144.26  Concentrate Blood Products Litigation, 
144.27  MDL-986, No. 93-C7452 (N.D.III.). 
144.28  (d) General Assistance Medical Care
144.29  General             141,805,000   128,012,000
144.30  (e) Basic Health Care - Nonentitlement
144.31  General              13,502,000    16,182,000
144.32  [DENTAL ACCESS GRANT.] Of this 
144.33  appropriation, $75,000 is from the 
144.34  general fund to the commissioner in 
144.35  fiscal year 2000 for a grant to a 
144.36  nonprofit dental provider group 
144.37  operating a dental clinic in Clay 
144.38  county.  The grant must be used to 
144.39  increase access to dental services for 
144.40  recipients of medical assistance, 
144.41  general assistance medical care, and 
144.42  the MinnesotaCare program in the 
144.43  northwest area of the state.  This 
144.44  appropriation is available the day 
144.45  following final enactment. 
144.46     <b>EFFECTIVE DATE:</b>  This section is effective the day 
144.47  following final enactment. 
144.48     Sec. 10.  Laws 1999, chapter 245, article 4, section 121, 
144.49  is amended to read: 
144.50     Sec. 121.  [EFFECTIVE DATE.] 
144.51     (a) Sections 3, 5, 45, and 97, and 98, subdivision 3, 
144.52  paragraph (d), are effective July 1, 2000. 
144.53     (b) Section 56 is effective upon federal approval. 
144.54     <b>EFFECTIVE DATE:</b>  This section is effective the day 
144.55  following final enactment. 
145.1      Sec. 11.  [REPEALER.] 
145.2      (a) Minnesota Statutes 1999 Supplement, section 144.396, 
145.3   subdivision 13, is repealed.  
145.4      (b) Laws 1997, chapter 203, article 7, section 27, is 
145.5   repealed. 
145.6      <b>EFFECTIVE DATE:</b>  This section is effective the day 
145.7   following final enactment.