1.1                          A bill for an act 
  1.2             relating to state government; appropriating money for 
  1.3             jobs and economic development, environment, natural 
  1.4             resources, agriculture, criminal justice, state 
  1.5             government, health, and human services; modifying term 
  1.6             limit provisions for the rehabilitation advisory 
  1.7             council for the blind; modifying a match requirement 
  1.8             for the Judy Garland museum; exempting certain 
  1.9             individuals from certain unemployment insurance 
  1.10            additional benefits requirements; authorizing certain 
  1.11            school food service workers to use wage credits earned 
  1.12            for benefit purposes; exempting the jobs skills 
  1.13            partnership board from certain state contracting 
  1.14            requirements; modifying certain fees; providing for 
  1.15            the expiration of securities filings; providing for a 
  1.16            refund of certain excess securities fees; authorizing 
  1.17            the rural policy and development center board to 
  1.18            appoint additional members; authorizing the job skills 
  1.19            partnership board to make certain grants; authorizing 
  1.20            the Minnesota state colleges and universities board to 
  1.21            make certain investments; increasing certain 
  1.22            penalties; providing certain rights to next of kin of 
  1.23            a deceased employee; extending the expiration date of 
  1.24            the legislative electric energy task force; modifying 
  1.25            provisions relating to renewable energy incentive 
  1.26            payments; setting a goal for the department of 
  1.27            economic security; increasing grant limits; modifying 
  1.28            unemployment benefit eligibility; modifying a 
  1.29            dislocated worker grant provision; codifying 
  1.30            electrical inspection fee provisions; extending sunset 
  1.31            date for board of boxing; transferring boxing 
  1.32            regulation to the board of health; authorizing a 
  1.33            study; modifying unclaimed property provisions; 
  1.34            extending the time a grant is available; canceling 
  1.35            certain appropriations; reducing appropriations to the 
  1.36            department of commerce; modifying agricultural 
  1.37            licensing fees; changing certain agricultural chemical 
  1.38            reimbursement and ethanol producer payment provisions; 
  1.39            modifying provisions relating to rural finance 
  1.40            authority; creating the agroforestry loan program; 
  1.41            creating certain recreation areas; modifying natural 
  1.42            resources funding formulas; modifying state trail and 
  1.43            park provisions; modifying drainage authority funding 
  1.44            sources; modifying storage tank provisions; modifying 
  1.45            certain resource recovery facility provisions; 
  1.46            modifying provisions relating to state land transfers; 
  2.1             creating an agricultural land set-aside program; 
  2.2             increasing criminal penalty fines; requiring a study 
  2.3             on issues related to providing shelter for victims of 
  2.4             domestic violence; authorizing local road authorities 
  2.5             to provide by ordinance for designation of pedestrian 
  2.6             safety crossings on highways under certain 
  2.7             circumstances; establishing a capitol complex 
  2.8             oversight committee consisting of legislative and 
  2.9             executive agency members to plan and oversee security 
  2.10            in the capitol complex area; requiring the Minnesota 
  2.11            safety council to enhance its crosswalk safety 
  2.12            awareness program; authorizing the council to make 
  2.13            grants to local units of government for enhancing 
  2.14            enforcement of pedestrian safety laws; establishing a 
  2.15            joint domestic abuse prosecution unit to be 
  2.16            administered by the Ramsey county attorney's office 
  2.17            and St. Paul city attorney office; establishing a 
  2.18            grant program for peace officer education to combat 
  2.19            juvenile prostitution; requiring the commissioner of 
  2.20            public safety to develop an automobile theft 
  2.21            prevention program; requiring the commissioner of 
  2.22            corrections to develop a uniform method to calculate 
  2.23            per diem cost of incarcerating offenders at state 
  2.24            adult correctional facilities; adopting a formula that 
  2.25            requires counties and the state to share costs of 
  2.26            confinement at Minnesota correctional facility-Red 
  2.27            Wing; authorizing the commissioner of corrections to 
  2.28            make juvenile residential treatment grants; requiring 
  2.29            placement of juveniles at Red Wing if admission 
  2.30            criteria are met unless the court finds the safety of 
  2.31            the child or community can best be met in an 
  2.32            out-of-state facility; requiring mandatory commitment 
  2.33            to the commissioner of corrections of certain 
  2.34            juveniles who have refused or failed to complete sex 
  2.35            offender or chemical treatment programs; authorizing 
  2.36            conveyance of state land for regional jail programs; 
  2.37            modifying provisions relating to state government 
  2.38            operations; reducing the Minnesota comprehensive 
  2.39            health association's operating deficit assessment; 
  2.40            allowing a hospital construction project in Beltrami 
  2.41            county; allowing exceptions to the nursing home 
  2.42            moratorium; removing the reimbursement prohibition for 
  2.43            marriage and family therapists under medical 
  2.44            assistance; expanding the senior drug program; 
  2.45            requiring information on prescription drug patient 
  2.46            assistance; changing long-term care provisions; 
  2.47            increasing rates for nursing facilities and other 
  2.48            providers; changing provisions governing public 
  2.49            assistance programs; providing for immigration status 
  2.50            verification and requiring a report to the Immigration 
  2.51            and Naturalization Service on undocumented aliens; 
  2.52            making changes to the distribution and treatment of 
  2.53            child support in public assistance programs; 
  2.54            establishing a local interventions for 
  2.55            self-sufficiency grant program; establishing a 
  2.56            supportive housing pilot project; establishing a 
  2.57            nontraditional career assistance and training program; 
  2.58            establishing an at-risk youth out-of-wedlock pregnancy 
  2.59            prevention program; extending public assistance 
  2.60            eligibility for certain groups; authorizing county 
  2.61            pilot projects for families on public assistance; 
  2.62            making technical corrections; amending Minnesota 
  2.63            Statutes 1998, sections 16A.11, subdivision 3; 
  2.64            16A.126, subdivision 2; 16B.052; 16B.48, subdivision 
  2.65            4; 16B.485; 16C.05, subdivision 3; 16E.04, by adding a 
  2.66            subdivision; 17.4988, subdivision 2; 17A.03, 
  2.67            subdivision 5; 18E.04, subdivision 4; 41A.09, 
  2.68            subdivision 3a; 41B.03, subdivisions 1 and 2; 41B.039, 
  2.69            subdivision 2; 41B.04, subdivision 8; 41B.042, 
  2.70            subdivision 4; 41B.043, subdivision 2; 41B.045, 
  2.71            subdivision 2; 60H.03, by adding a subdivision; 
  3.1             80A.122, by adding a subdivision; 80A.28, subdivision 
  3.2             1; 85.015, by adding a subdivision; 85.34, subdivision 
  3.3             1, and by adding subdivisions; 97A.055, subdivision 2; 
  3.4             103E.011, by adding a subdivision; 116L.04, 
  3.5             subdivision 1; 125A.74, subdivisions 1 and 2; 144.551, 
  3.6             subdivision 1; 144A.071, subdivision 4a, and by adding 
  3.7             a subdivision; 148B.32, subdivision 1; 168A.40, 
  3.8             subdivisions 3 and 4; 169.21, subdivisions 2 and 3; 
  3.9             169.89, subdivision 2; 181A.12, subdivision 1; 
  3.10            182.661, subdivision 1; 182.666, subdivision 2, and by 
  3.11            adding a subdivision; 216C.41, subdivision 3; 242.41; 
  3.12            242.43; 242.44; 252.28, by adding a subdivision; 
  3.13            256.01, by adding a subdivision; 256.741, by adding a 
  3.14            subdivision; 256.955, subdivisions 1, 2, and by adding 
  3.15            subdivisions; 256.9751; 256B.0625, by adding a 
  3.16            subdivision; 256B.431, by adding subdivisions; 
  3.17            256B.434, by adding a subdivision; 256B.501, by adding 
  3.18            a subdivision; 256B.69, subdivision 5d; 256J.32, by 
  3.19            adding a subdivision; 256J.45, subdivision 3; 256J.47, 
  3.20            subdivision 1; 256J.49, subdivision 13; 256J.50, 
  3.21            subdivisions 5 and 7; 256L.05, subdivision 5; 268.362, 
  3.22            subdivision 2; 297A.44, subdivision 1; 345.31, by 
  3.23            adding a subdivision; 345.39, subdivision 1; 383B.235, 
  3.24            by adding a subdivision; 422A.101, subdivision 3; 
  3.25            609.02, subdivisions 3 and 4a; 609.03; 609.033; 
  3.26            609.0331; 609.0332, subdivision 1; and 609.034; 
  3.27            Minnesota Statutes 1999 Supplement, sections 16A.103, 
  3.28            subdivision 1; 16A.129, subdivision 3; 62J.535, 
  3.29            subdivision 2; 116.073, subdivision 1; 116J.421, 
  3.30            subdivision 2; 119B.011, subdivision 15; 144.395, by 
  3.31            adding a subdivision; 144.396, subdivisions 11 and 12; 
  3.32            242.192; 256.01, subdivision 2; 256.019; 256.955, 
  3.33            subdivisions 4, 8, and 9; 256B.057, subdivision 3; 
  3.34            256B.0916, subdivision 1; 256B.094, subdivision 6; 
  3.35            256B.431, subdivisions 17 and 28; 256B.69, 
  3.36            subdivisions 5b and 5c; 256D.03, subdivision 4; 
  3.37            256D.053, subdivision 1; 256J.08, subdivision 86; 
  3.38            256J.21, subdivision 2; 256J.33, subdivision 4; 
  3.39            256J.34, subdivisions 1 and 4; 256J.37, subdivision 9; 
  3.40            256J.52, subdivisions 3 and 5; 256J.56; 268.085, 
  3.41            subdivision 4; 268.98, subdivision 3; and 326.105; 
  3.42            Laws 1997, chapter 200, article 1, section 5, 
  3.43            subdivision 3; chapter 203, article 9, section 21, as 
  3.44            amended; chapter 225, article 4, section 4, as 
  3.45            amended; Laws 1998, chapter 389, article 16, section 
  3.46            31, subdivision 2, as amended; chapter 404, section 7, 
  3.47            subdivision 23, as amended; Laws 1999, chapter 216, 
  3.48            article 1, sections 7, subdivision 6; 9; 14; and 18; 
  3.49            chapter 223, article 1, section 6, subdivision 1; 
  3.50            article 2, section 81, as amended; chapter 231, 
  3.51            sections 2, subdivision 2; 6, as amended; 11, 
  3.52            subdivision 3; and 14; chapter 245, article 1, section 
  3.53            2, subdivisions 5 and 8; article 4, section 121; and 
  3.54            article 10, section 10; and chapter 250, article 1, 
  3.55            sections 11; 12, subdivision 8; 14, subdivision 3; and 
  3.56            18; proposing coding for new law in Minnesota 
  3.57            Statutes, chapters 16A; 41B; 116L; 136F; 144; 169; 
  3.58            182; 241; 242; 256J; 256K; 260B; 268; 299A; 299E; 326; 
  3.59            and 345; repealing Minnesota Statutes 1998, section 
  3.60            168A.40, subdivision 1; Minnesota Statutes 1999 
  3.61            Supplement, sections 144.396, subdivision 13; and 
  3.62            168A.40, subdivision 2; Laws 1997, chapter 203, 
  3.63            article 7, section 27; and Laws 1999, chapter 250, 
  3.64            article 1, section 15, subdivision 4; and Minnesota 
  3.65            Rules, part 3800.3810. 
  3.66  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  3.67                             ARTICLE 1 
  3.68            JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS 
  4.1   Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
  4.2      The sums shown in the columns marked "APPROPRIATIONS" are 
  4.3   appropriated from the general fund, or another named fund, to 
  4.4   the agencies and for the purposes specified in this article, to 
  4.5   be available for the fiscal years indicated for each purpose.  
  4.6   The figures "2000" and "2001," where used in this article, mean 
  4.7   that the appropriation or appropriations listed under them are 
  4.8   available for the year ending June 30, 2000, or June 30, 2001, 
  4.9   respectively.  The term "first year" means the fiscal year 
  4.10  ending June 30, 2000, and "second year" means the fiscal year 
  4.11  ending June 30, 2001. 
  4.12                          SUMMARY BY FUND
  4.13                              2000          2001           TOTAL
  4.14  General              $    737,000    $  3,476,000    $  4,213,000
  4.15  TANF                       -0-            500,000         500,000
  4.16  Workforce Development  
  4.17  Fund                       -0-          1,827,000       1,827,000
  4.18  Workers' Compensation 
  4.19  Fund                       -0-             90,000          90,000
  4.20  TOTAL                $    737,000      $5,893,000      $6,630,000
  4.21                                             APPROPRIATIONS 
  4.22                                         Available for the Year 
  4.23                                             Ending June 30 
  4.24                                            2000         2001 
  4.25  Sec. 2.  TRADE AND ECONOMIC
  4.26  DEVELOPMENT                          -0-              2,771,000 
  4.27  This appropriation is for the purposes 
  4.28  stated in this section, and is added to 
  4.29  the appropriation in Laws 1999, chapter 
  4.30  223, article 1, section 2. 
  4.31  (a) Labor Force Assessments
  4.32         -0-            750,000 
  4.33  This appropriation is for grants to 
  4.34  local or regional economic development 
  4.35  agencies to support the development and 
  4.36  use of labor force assessments that 
  4.37  will allow the agencies to recognize 
  4.38  areas in which the skill sets or 
  4.39  education of the available workforce 
  4.40  are underused.  Projects are eligible 
  4.41  for grants of up to 60 percent of the 
  4.42  total project costs.  The commissioner 
  4.43  shall develop criteria for these grants 
  4.44  that will maximize their effectiveness 
  4.45  in assisting local economic development 
  4.46  efforts.  The criteria shall give a 
  4.47  preference to projects that have the 
  4.48  support and involvement of multiple 
  5.1   economic development agencies across a 
  5.2   geographic region where appropriate, 
  5.3   provided that the size of the area 
  5.4   covered by a project does not interfere 
  5.5   with the usefulness of the information 
  5.6   generated.  This is a one-time 
  5.7   appropriation and is not added to the 
  5.8   agency's budget base. 
  5.9   (b) Catalyst Grants
  5.10         -0-          1,000,000 
  5.11  This appropriation is for catalyst 
  5.12  grants to local governments and 
  5.13  recognized Indian tribal governments to 
  5.14  expand Internet access in areas of 
  5.15  rural Minnesota that are otherwise 
  5.16  unlikely to receive access through 
  5.17  existing technology.  Catalyst grants 
  5.18  are for capital expenditures related to 
  5.19  providing Internet access to residences 
  5.20  and businesses using either traditional 
  5.21  fiber optic cable or wireless 
  5.22  technology.  Eligible capital 
  5.23  expenditures include equipment and 
  5.24  construction costs, but do not include 
  5.25  the costs of planning, engineering, or 
  5.26  preliminary design.  The commissioner 
  5.27  shall award catalyst grants according 
  5.28  to a competitive grant process and 
  5.29  shall create criteria for the award of 
  5.30  grants.  These criteria shall include a 
  5.31  preference for projects that will 
  5.32  provide both business and residential 
  5.33  Internet access, provided that a 
  5.34  project is presumed to provide business 
  5.35  access only if it will enable access of 
  5.36  at least 512 kilobytes per second.  The 
  5.37  maximum catalyst grant for any project 
  5.38  is $250,000 or 25 percent of the 
  5.39  eligible capital expenditures, 
  5.40  whichever is less.  This is a one-time 
  5.41  appropriation and is not added to the 
  5.42  agency's budget base. 
  5.43  (c) Tourism Loan Account
  5.44         -0-          1,021,000 
  5.45  This appropriation is for transfer to 
  5.46  the tourism loan account established 
  5.47  under Minnesota Statutes, section 
  5.48  116J.617, subdivision 5, for the 
  5.49  tourism loan program under Minnesota 
  5.50  Statutes, section 116J.617.  This is a 
  5.51  one-time appropriation and shall be 
  5.52  targeted to northern Minnesota. 
  5.53  (d) Cancellation
  5.54  Of the unspent and unencumbered 
  5.55  portions of the appropriations in Laws 
  5.56  1997, chapter 200, article 1, section 
  5.57  2, subdivision 2, for the pathways 
  5.58  program under Minnesota Statutes, 
  5.59  section 116L.04, subdivision 1a, 
  5.60  $800,000 is canceled and returned to 
  5.61  the general fund. 
  5.62     <b>EFFECTIVE DATE:</b>  This paragraph is effective the day 
  6.1   following final enactment. 
  6.2   Sec. 3.  MINNESOTA TECHNOLOGY            -0-            200,000
  6.3   This appropriation is for the 
  6.4   e-Business Institute.  This is a 
  6.5   one-time appropriation and is not added 
  6.6   to the agency's budget base. 
  6.7   Sec. 4.  HOUSING FINANCE AGENCY          -0-            500,000
  6.8   This appropriation is for the family 
  6.9   homeless prevention and assistance 
  6.10  program under Minnesota Statutes, 
  6.11  section 462A.204, and is available 
  6.12  until June 30, 2001.  This 
  6.13  appropriation is from the state's 
  6.14  federal TANF block grant under title I 
  6.15  of Public Law Number 104-193 to the 
  6.16  commissioner of human services, to 
  6.17  reimburse the housing development fund 
  6.18  for assistance under this program for 
  6.19  families receiving TANF assistance 
  6.20  under the MFIP program.  The 
  6.21  commissioner of human services shall 
  6.22  make quarterly reimbursements to the 
  6.23  housing development fund.  The 
  6.24  commissioner of human services shall 
  6.25  not make any reimbursement which the 
  6.26  commissioner determines would be 
  6.27  subject to a penalty under Code of 
  6.28  Federal Regulations, section 262.1.  
  6.29  This is a one-time appropriation. 
  6.30  Sec. 5.  BOARD OF ARCHITECTURE,
  6.31  ENGINEERING, LAND SURVEYING, LANDSCAPE
  6.32  LANDSCAPE ARCHITECTURE, AND  
  6.33  INTERIOR DESIGN                          -0-            130,000
  6.34  This appropriation is for enforcement 
  6.35  activities of the board.  
  6.36  Sec. 6.  BOARD OF BOXING                 -0-             65,000
  6.37  This amount is added to the 
  6.38  appropriation in Laws 1999, chapter 
  6.39  223, article 1, section 10. 
  6.40  Sec. 7.  DEPARTMENT OF ECONOMIC
  6.41  SECURITY                             1,037,000        1,977,000
  6.42  (a) Youthbuild 
  6.43  Of this amount, $200,000 in the first 
  6.44  year is a one-time appropriation for 
  6.45  grants to existing Youthbuild programs 
  6.46  that have experienced a loss of federal 
  6.47  funds and are unable to fulfill their 
  6.48  missions under Minnesota Statutes, 
  6.49  sections 268.361 to 268.366. 
  6.50  (b) Alien Labor Certification 
  6.51  Of this amount, $150,000 the second 
  6.52  year is a one-time appropriation for 
  6.53  alien labor certification, and is 
  6.54  available as matching funds are 
  6.55  provided on at least a 
  6.56  dollar-for-dollar basis from nonstate 
  6.57  sources. 
  7.1   (c) Displaced Homemaker Programs 
  7.2   Of this amount, $1,827,000 the second 
  7.3   year is an appropriation from the 
  7.4   workforce development fund for 
  7.5   displaced homemaker programs under 
  7.6   Minnesota Statutes, section 268.96.  
  7.7   The general fund appropriation of 
  7.8   $1,827,000 for displaced homemaker 
  7.9   programs in fiscal year 2001 in Laws 
  7.10  1999, chapter 223, article 1, section 
  7.11  4, subdivision 4, is canceled and 
  7.12  returned to the general fund.  The 
  7.13  services, locations, and operations of 
  7.14  the displaced homemaker programs shall 
  7.15  not be changed because of the change of 
  7.16  appropriation fund source by this 
  7.17  paragraph.  The workforce development 
  7.18  fund shall be the ongoing funding 
  7.19  source for displaced homemaker programs 
  7.20  under Minnesota Statutes, section 
  7.21  268.96. 
  7.22  (d) Summer Youth Employment
  7.23  $837,000 in the first year is for 
  7.24  summer youth employment programs.  This 
  7.25  is a one-time appropriation and is not 
  7.26  added to the agency's budget base.  
  7.27  This appropriation is available 
  7.28  immediately. 
  7.29     Sec. 8.  Laws 1997, chapter 200, article 1, section 5, 
  7.30  subdivision 3, is amended to read:  
  7.31  Subd. 3.  State Services for the Blind 
  7.32       3,735,000      3,816,000
  7.33  This appropriation may be supplemented 
  7.34  by funds provided by the Friends of the 
  7.35  Communication Center, for support of 
  7.36  Services for the Blind's Communication 
  7.37  Center, which serves all blind and 
  7.38  visually handicapped Minnesotans.  The 
  7.39  commissioner shall report to the 
  7.40  legislature on a biennial basis the 
  7.41  funds provided by the Friends of the 
  7.42  Communication Center. 
  7.43  The commissioner may not require 
  7.44  employees to participate in intensive 
  7.45  blindness sensitivity training in which 
  7.46  the employees are blindfolded or 
  7.47  otherwise simulate blindness, unless 
  7.48  the employee is a manager or counselor; 
  7.49  except that the commissioner may 
  7.50  require the training for up to 14 
  7.51  employees who are not managers or 
  7.52  counselors but have direct contact with 
  7.53  blind clients seeking services, and up 
  7.54  to four employees at the store located 
  7.55  at the state services for the blind. 
  7.56  A person may not serve more than a 
  7.57  total of six consecutive years as a 
  7.58  member of the rehabilitation advisory 
  7.59  council for the blind or its 
  7.60  predecessor, the council for the 
  7.61  blind.  Service prior to the effective 
  8.1   date of this section is included in the 
  8.2   six-year limit, except that a person 
  8.3   currently serving on the rehabilitation 
  8.4   advisory council for the blind may 
  8.5   serve out the person's current term and 
  8.6   serve one additional term After six 
  8.7   consecutive years of service, a person 
  8.8   may not be reappointed to the council 
  8.9   until a period of one year has elapsed. 
  8.10     Sec. 9.  Laws 1999, chapter 223, article 1, section 6, 
  8.11  subdivision 1, is amended to read 
  8.12  Subdivision 1.  Total 
  8.13  Appropriation                         18,927,000     17,460,000
  8.14                                        18,627,000     16,760,000 
  8.15                Summary by Fund
  8.16  General              17,245,000    15,831,000
  8.17                       16,945,000    15,131,000 
  8.18  Petro Cleanup         1,015,000     1,045,000 
  8.19  Workers'
  8.20  Compensation            567,000       584,000
  8.21  Special Revenue         100,000       -0-  
  8.22  The amounts that may be spent from this 
  8.23  appropriation for each program are 
  8.24  specified in the following 
  8.25  subdivisions, except that with respect 
  8.26  to general fund appropriations, the 
  8.27  commissioner must reduce the amounts 
  8.28  spent from the amounts specified by a 
  8.29  total of $300,000 in the first year and 
  8.30  $700,000 in the second year.  The 
  8.31  general fund base for the department 
  8.32  shall be $14,853,000 in fiscal year 
  8.33  2002 and $14,877,000 in fiscal year 
  8.34  2003. 
  8.35     <b>EFFECTIVE DATE:</b>  This section is effective the day 
  8.36  following final enactment. 
  8.37  Sec. 10.  MINNESOTA HISTORICAL
  8.38  SOCIETY                                  -0-            850,000
  8.39  $850,000 in the second year is for 
  8.40  salary adjustments. 
  8.41  Sec. 11.  DEPARTMENT OF        
  8.42  FINANCE                                  -0-             10,000
  8.43  This appropriation is for up to $10,000 
  8.44  for the commissioner of finance to 
  8.45  consult with the commissioner of 
  8.46  employee relations and the Minnesota 
  8.47  Historical Society to consider the 
  8.48  causes of ongoing shortfalls in the 
  8.49  salary and benefit accounts at the 
  8.50  Minnesota Historical Society, and to 
  8.51  compare the salaries and benefits at 
  8.52  agencies in other states that have 
  8.53  comparable missions.  The commissioner 
  8.54  shall report findings, including 
  8.55  recommendations, to the legislature by 
  8.56  December 31, 2000.  This is a one-time 
  8.57  appropriation and is not added to the 
  9.1   agency's budget base. 
  9.2   Sec. 12.  DEPARTMENT OF LABOR 
  9.3   AND INDUSTRY                             -0-             90,000 
  9.4   This appropriation is from the workers' 
  9.5   compensation fund for the workplace 
  9.6   services division to administer article 
  9.7   2, sections 11 to 14.  This amount is 
  9.8   added to the appropriation in Laws 
  9.9   1999, chapter 223, article 1, section 
  9.10  11, subdivision 3. 
  9.11     Sec. 13.  [JUDY GARLAND MUSEUM.] 
  9.12     Notwithstanding Laws 1997, chapter 200, article 1, section 
  9.13  2, subdivision 2, the match required for the appropriation for 
  9.14  an agreement under that law with the Judy Garland Children's 
  9.15  Museum and the department of trade and economic development is 
  9.16  an equal match of $200,000. 
  9.17     Sec. 14.  [UPPER RED LAKE BUSINESS LOAN PROGRAM.] 
  9.18     The appropriation to the commissioner of trade and economic 
  9.19  development in Laws 1999, chapter 223, article 1, section 2, 
  9.20  subdivision 4, for the Upper Red Lake business loan program is 
  9.21  available until January 31, 2001, and applications for grants 
  9.22  under that program may be accepted until that date. 
  9.23     <b>EFFECTIVE DATE:</b>  This section is effective the day 
  9.24  following final enactment. 
  9.25     Sec. 15.  [ADVANTAGE MINNESOTA.] 
  9.26     The appropriation to the commissioner of trade and economic 
  9.27  development in Laws 1999, chapter 223, article 1, section 2, 
  9.28  subdivision 2, for a grant to Advantage Minnesota is available 
  9.29  and may be matched until June 30, 2001. 
  9.30     <b>EFFECTIVE DATE:</b> This section is effective the day following 
  9.31  final enactment. 
  9.32     Sec. 16.  [JOBS SKILLS PARTNERSHIP BOARD.] 
  9.33     (a) The appropriation by Laws 1999, chapter 223, article 1, 
  9.34  section 2, subdivision 2, to the department of trade and 
  9.35  economic development from the workforce development fund for the 
  9.36  jobs skills partnership board for the pathways program does not 
  9.37  cancel and is available until expended.  If the appropriation 
  9.38  for either year is insufficient, the appropriation for the other 
  9.39  year is available.  
 10.1      (b) The appropriation by Laws 1999, chapter 223, article 1, 
 10.2   section 2, subdivision 2, to the department of trade and 
 10.3   economic development from the state's federal TANF block grant 
 10.4   under Title 1 of Public Law Number 104-193 to the commissioner 
 10.5   of human services, to be transferred to the commissioner of 
 10.6   trade and economic development for the pathways program under 
 10.7   Minnesota Statutes, section 116L.04, subdivision 1a, does not 
 10.8   cancel and is available until expended.  If the appropriation 
 10.9   for either year is insufficient, the appropriation for the other 
 10.10  year is available.  
 10.11     (c) The appropriation by Laws 1999, chapter 245, article 1, 
 10.12  section 2, subdivision 10, to the commissioner of health and 
 10.13  human services from the state's federal TANF block grant under 
 10.14  Title 1 of Public Law Number 104-193, to increase employment and 
 10.15  training services grants for MFIP of which $750,000 is to be 
 10.16  transferred to the jobs skills partnership board for the health 
 10.17  care and human services worker training and retention program, 
 10.18  does not cancel and is available until expended.  If the 
 10.19  appropriation for either year is insufficient, the appropriation 
 10.20  for the other year is available. 
 10.21     Sec. 17.  [WORKFORCE CENTER LOCATIONS.] 
 10.22     The commissioner of the department of administration shall 
 10.23  assist the commissioner of economic security and the board of 
 10.24  trustees of the Minnesota state colleges and universities system 
 10.25  to develop and report to the legislature by January 15, 2001, on 
 10.26  a ten-year plan for the possible location of workforce centers 
 10.27  or affiliate locations on Minnesota college and university 
 10.28  campuses where appropriate.  
 10.29     The plan must identify space requirements, current 
 10.30  workforce center lease expiration dates, and the campuses that 
 10.31  can immediately accommodate workforce centers, and recommend 
 10.32  timelines for colocating workforce centers with Minnesota state 
 10.33  colleges and universities system facilities.  
 10.34     If additional space would be required to accommodate the 
 10.35  workforce center, the plan must outline alternative capital 
 10.36  financing mechanisms, including private build-lease. 
 11.1      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 11.2   following final enactment. 
 11.3      Sec. 18.  [UNEMPLOYMENT INSURANCE; FOOD SERVICES.] 
 11.4      Notwithstanding the provisions of Minnesota Statutes, 
 11.5   section 268.085, subdivision 8, wage credits from an employer 
 11.6   are not subject to the provisions of Minnesota Statutes, section 
 11.7   268.085, subdivision 7, if those wage credits were earned during 
 11.8   the school year by an employee of a private employer performing 
 11.9   work pursuant to a contract between the employer and an 
 11.10  elementary or secondary school and the employment was related to 
 11.11  food services provided to the school by the employer.  This 
 11.12  section expires December 31, 2001. 
 11.13     Sec. 19.  [EXEMPTION FROM ADDITIONAL BENEFITS REQUIREMENTS; 
 11.14  HENNEPIN PAPER.] 
 11.15     Notwithstanding Minnesota Statutes, section 268.125, an 
 11.16  applicant is eligible to receive additional benefits for any 
 11.17  week under Minnesota Statutes, section 268.125, if: 
 11.18     (1) the applicant was laid off due to lack of work from the 
 11.19  Hennepin Paper Company in Morrison county; 
 11.20     (2) the applicant is a member of a group certified on May 
 11.21  4, 1999, under the North American Free Trade Agreement or the 
 11.22  Trade Adjustment Act as having been impacted by foreign imports; 
 11.23     (3) the applicant has exhausted all rights to regular 
 11.24  benefits under Minnesota Statutes, section 268.07, and does not 
 11.25  qualify for a new benefit account under Minnesota Statutes, 
 11.26  section 268.07, and is not entitled to receive unemployment 
 11.27  benefits under any other state or federal law; 
 11.28     (4) the applicant is presently attending training or is on 
 11.29  vacation from training pursuant to the North American Free Trade 
 11.30  Agreement or the Trade Adjustment Act; 
 11.31     (5) the applicant has filed a continued request for 
 11.32  benefits under Minnesota Statutes, section 268.086, for the 
 11.33  week; 
 11.34     (6) a majority of the applicant's wage credits were from 
 11.35  the Hennepin Paper Company; 
 11.36     (7) the applicant is not subject to a disqualification 
 12.1   under Minnesota Statutes, section 268.095; and 
 12.2      (8) the applicant meets the eligibility requirements under 
 12.3   Minnesota Statutes, section 268.085, except for subdivision 1, 
 12.4   clause (2). 
 12.5      The disqualification provisions under Minnesota Statutes, 
 12.6   section 268.095, apply to this section. 
 12.7      The applicant's weekly additional benefit amount shall be 
 12.8   the same as the applicant's weekly benefit amount under 
 12.9   Minnesota Statutes, section 268.07. 
 12.10     The maximum amount of the additional benefits available 
 12.11  shall be 26 times the applicant's weekly benefit amount under 
 12.12  Minnesota Statutes, section 268.07. 
 12.13     Additional benefits under this section are payable from the 
 12.14  fund. 
 12.15     This section expires January 1, 2001. 
 12.16     Sec. 20.  [EXEMPTION FROM ADDITIONAL BENEFITS REQUIREMENTS; 
 12.17  EVTAC MINING.] 
 12.18     Notwithstanding Minnesota Statutes, section 268.125, 
 12.19  subdivisions 1, and 3, clauses (1) and (5), an applicant is 
 12.20  eligible to receive additional benefits under Minnesota 
 12.21  Statutes, section 268.125, effective the week following the week 
 12.22  in which the applicant exhausted regular benefits if: 
 12.23     (1) the applicant was laid off due to lack of work from the 
 12.24  Evtac Mining Company in St. Louis county between the months of 
 12.25  June and August of 1999; and 
 12.26     (2) the commissioner of economic security finds that the 
 12.27  applicant satisfies the conditions of Minnesota Statutes, 
 12.28  section 268.125, subdivision 3, clauses (2) to (4).  
 12.29     This section does not apply to any applicant who, with 
 12.30  respect to any period prior to September 1, 2000, receives, or 
 12.31  has an agreement to receive, a retirement pension financed in 
 12.32  whole or in part by the Evtac Mining Company. 
 12.33     Sec. 21.  [EFFECTIVE DATE.] 
 12.34     Sections 19 and 20 and any appropriation and related rider 
 12.35  for fiscal year 2000 are effective the day following final 
 12.36  enactment. 
 13.1                              ARTICLE 2
 13.2           JOBS AND ECONOMIC DEVELOPMENT POLICY PROVISIONS
 13.3      Section 1.  Minnesota Statutes 1998, section 16C.05, 
 13.4   subdivision 3, is amended to read: 
 13.5      Subd. 3.  [EXCEPTION.] The requirements of subdivision 2 do 
 13.6   not apply to contracts of the department of economic security 
 13.7   distributing state and federal funds for the purpose of 
 13.8   subcontracting the provision of program services to eligible 
 13.9   recipients.  For these contracts, the commissioner of economic 
 13.10  security is authorized to directly enter into agency contracts 
 13.11  and encumber available funds.  For contracts distributing state 
 13.12  or federal funds pursuant to the federal Economic Dislocation 
 13.13  and Worker Adjustment Assistance Act, United States Code, title 
 13.14  29, section 1651 et seq., or sections 268.9771, 268.978, 
 13.15  268.9781, and 268.9782, the commissioner of economic security is 
 13.16  authorized to directly enter into agency contracts with approval 
 13.17  of the workforce development council and encumber available 
 13.18  funds to ensure a rapid response to the needs of dislocated 
 13.19  workers.  The commissioner of economic security shall adopt 
 13.20  internal procedures to administer and monitor funds distributed 
 13.21  under these contracts.  This exception also applies to any 
 13.22  contracts entered into by the commissioner of children, 
 13.23  families, and learning and the jobs skills partnership board 
 13.24  that were previously entered into by the commissioner of 
 13.25  economic security. 
 13.26     Sec. 2.  Minnesota Statutes 1998, section 60H.03, is 
 13.27  amended by adding a subdivision to read: 
 13.28     Subd. 4.  [TERM AND FEES.] The term of a managing general 
 13.29  agent license issued under this section and the license fees 
 13.30  imposed are the same as those applicable to a licensed insurance 
 13.31  agent under chapter 60K.  
 13.32     Sec. 3.  Minnesota Statutes 1998, section 80A.122, is 
 13.33  amended by adding a subdivision to read: 
 13.34     Subd. 4a.  [EXPIRATION.] (a) A filing made in connection 
 13.35  with the securities of an open-end investment company under 
 13.36  subdivision 1 expires the next June 30 unless renewed.  To renew 
 14.1   a notice filing, an issuer shall: 
 14.2      (1) before expiration of a current notice filing, file with 
 14.3   the commissioner the documents specified by the commissioner 
 14.4   under subdivision 1, clause (2), together with any fees required 
 14.5   by section 80A.28, subdivision 1, paragraph (c); and 
 14.6      (2) no later than September 1 following expiration, file a 
 14.7   sales report for the prior fiscal year with the commissioner 
 14.8   specifying: 
 14.9      (i) the registered sales; 
 14.10     (ii) the actual sales; and 
 14.11     (iii) the balance that could be sold without an additional 
 14.12  filing under section 80A.28, subdivision 1, paragraph (c). 
 14.13     (b) No portion of the unsold balance of shares indicated on 
 14.14  the issuer's sales report may be lawfully sold in this state in 
 14.15  connection with a renewed notice filing until fees have been 
 14.16  paid to renew the shares. 
 14.17     Sec. 4.  Minnesota Statutes 1998, section 80A.28, 
 14.18  subdivision 1, is amended to read: 
 14.19     Subdivision 1.  (a) There shall be a filing fee of $100 for 
 14.20  every application for registration or notice filing.  There 
 14.21  shall be an additional fee of one-tenth of one percent of the 
 14.22  maximum aggregate offering price at which the securities are to 
 14.23  be offered in this state, and the maximum combined fees shall 
 14.24  not exceed $300.  
 14.25     (b) When an application for registration is withdrawn 
 14.26  before the effective date or a preeffective stop order is 
 14.27  entered under section 80A.13, subdivision 1, all but the $100 
 14.28  filing fee shall be returned.  If an application to register 
 14.29  securities is denied, the total of all fees received shall be 
 14.30  retained. 
 14.31     (c) Where a filing is made in connection with a federal 
 14.32  covered security under section 18(b)(2) of the Securities Act of 
 14.33  1933, there is a fee of $100 for every initial filing.  If the 
 14.34  filing is made in connection with redeemable securities issued 
 14.35  by an open end management company or unit investment trust, as 
 14.36  defined in the Investment Company Act of 1940, there is an 
 15.1   additional annual fee of 1/20 of one percent of the maximum 
 15.2   aggregate offering price at which the securities are to be 
 15.3   offered in this state during the notice filing period.  The fee 
 15.4   must be paid at the time of the initial filing and thereafter in 
 15.5   connection with each renewal no later than July 1 of each year 
 15.6   and must be sufficient to cover the shares the issuer expects to 
 15.7   sell in this state over the next 12 months.  If during a current 
 15.8   notice filing the issuer determines it is likely to sell shares 
 15.9   in excess of the shares for which fees have been paid to the 
 15.10  commissioner, the issuer shall submit an amended notice filing 
 15.11  to the commissioner under section 80A.122, subdivision 1, clause 
 15.12  (3), together with a fee of 1/20 of one percent of the maximum 
 15.13  aggregate offering price of the additional shares.  Shares for 
 15.14  which a fee has been paid, but which have not been sold at the 
 15.15  time of expiration of the notice filing, may not be sold unless 
 15.16  an additional fee to cover the shares has been paid to the 
 15.17  commissioner as provided in this section and section 80A.122, 
 15.18  subdivision 4a.  If the filing is made in connection with 
 15.19  redeemable securities issued by such a company or trust, there 
 15.20  is no maximum fee for securities filings made according to this 
 15.21  paragraph.  If the filing is made in connection with any other 
 15.22  federal covered security under Section 18(b)(2) of the 
 15.23  Securities Act of 1933, there is an additional fee of one-tenth 
 15.24  of one percent of the maximum aggregate offering price at which 
 15.25  the securities are to be offered in this state, and the combined 
 15.26  fees shall not exceed $300.  Beginning with fiscal year 2001 and 
 15.27  continuing each fiscal year thereafter, as of the last day of 
 15.28  each fiscal year, the commissioner shall determine the total 
 15.29  amount of all fees that were collected under this paragraph in 
 15.30  connection with any filings made for that fiscal year for 
 15.31  securities of an open-end investment company on behalf of a 
 15.32  security that is a federal covered security pursuant to section 
 15.33  18(b)(2) of the Securities Act of 1933.  To the extent the total 
 15.34  fees collected by the commissioner in connection with these 
 15.35  filings exceed $25,000,000 in a fiscal year, the commissioner 
 15.36  shall refund, on a pro rata basis, to all persons who paid any 
 16.1   fees for that fiscal year, the amount of fees collected by the 
 16.2   commissioner in excess of $25,000,000.  No individual refund is 
 16.3   required of amounts of $100 or less for a fiscal year. 
 16.4      Sec. 5.  Minnesota Statutes 1999 Supplement, section 
 16.5   116J.421, subdivision 2, is amended to read: 
 16.6      Subd. 2.  [GOVERNANCE.] The center is governed by a board 
 16.7   of directors appointed to six-year terms by the governor 
 16.8   comprised of: 
 16.9      (1) a representative from each of the two largest statewide 
 16.10  general farm organizations; 
 16.11     (2) a representative from a regional initiative 
 16.12  organization selected under section 116J.415, subdivision 3; 
 16.13     (3) the president of Mankato State University; 
 16.14     (4) a representative from the general public residing in a 
 16.15  town of less than 5,000 located outside of the metropolitan 
 16.16  area; 
 16.17     (5) a member of the house of representatives appointed by 
 16.18  the speaker of the house and a member of the senate appointed by 
 16.19  the subcommittee on committees of the senate committee on rules 
 16.20  and administration appointed for two-year terms; 
 16.21     (6) three representatives from business, including one 
 16.22  representing rural manufacturing and one rural retail and 
 16.23  service business; 
 16.24     (7) three representatives from private foundations with a 
 16.25  demonstrated commitment to rural issues; 
 16.26     (8) one representative from a rural county government; and 
 16.27     (9) one representative from a rural regional government. 
 16.28     The board shall appoint one additional member to the board 
 16.29  of directors who shall represent the general public.  
 16.30     If the board concludes at any time that the composition of 
 16.31  the board does not adequately reflect the ethnic and gender 
 16.32  diversity of rural Minnesota, the board may appoint up to four 
 16.33  additional members in order to better reflect this diversity.  
 16.34  Members appointed by the board under this paragraph shall serve 
 16.35  six-year terms.  The board may not appoint additional members 
 16.36  such that the board would have a total of more than 20 members. 
 17.1      Sec. 6.  Minnesota Statutes 1998, section 116L.04, 
 17.2   subdivision 1, is amended to read: 
 17.3      Subdivision 1.  [PARTNERSHIP PROGRAM.] (a) The partnership 
 17.4   program may provide grants-in-aid to educational or other 
 17.5   nonprofit training educational institutions using the following 
 17.6   guidelines:  
 17.7      (1) the educational or other nonprofit educational 
 17.8   institution is a provider of training within the state in either 
 17.9   the public or private sector; 
 17.10     (2) the program involves skills training that is an area of 
 17.11  employment need; and 
 17.12     (3) preference will be given to educational or other 
 17.13  nonprofit training institutions which serve economically 
 17.14  disadvantaged people, minorities, or those who are victims of 
 17.15  economic dislocation and to businesses located in rural areas.  
 17.16     (b) A single grant to any one institution shall not exceed 
 17.17  $400,000.  
 17.18     Sec. 7.  [116L.16] [DISTANCE-WORK GRANTS.] 
 17.19     The job skills partnership board may make grants-in-aid for 
 17.20  distance-work projects.  The purpose of the grants is to promote 
 17.21  distance-work projects involving technology in rural areas and 
 17.22  may include a consortium of organizations partnering in the 
 17.23  development of rural technology industry.  Grants may be used to 
 17.24  identify and train rural workers in technology and provide rural 
 17.25  workers with physical connections to telecommunications 
 17.26  infrastructure, where necessary, in order to be self-employed or 
 17.27  employed from their homes or satellite offices.  Grants must be 
 17.28  made according to Minnesota Statutes, sections 116L.02 and 
 17.29  116L.04, except that: 
 17.30     (1) the business match may include, but is not limited to, 
 17.31  additional management or technology staff costs; start-up 
 17.32  equipment costs such as telecommunications infrastructure, 
 17.33  additional software, or computer upgrades; consulting fees for 
 17.34  implementation of distance-work policies or identification and 
 17.35  skill assessment of potential employees; and the joint financial 
 17.36  contribution of two or more businesses acting as a consortium; 
 18.1      (2) cash or in-kind contributions by partnering 
 18.2   organizations may be used as a match; 
 18.3      (3) eligible grantees may be educational or nonprofit 
 18.4   educational training organizations; and 
 18.5      (4) grants-in-aid may be packaged with loans under 
 18.6   Minnesota Statutes, section 116L.06, subdivision 6. 
 18.7      The board shall, to the extent there are sufficient 
 18.8   applications, make grant awards to as many parts of the state as 
 18.9   possible.  Subject to the requirement for geographic 
 18.10  distribution of grants, preference shall be given to grant 
 18.11  applications that provide the most cost-effective training 
 18.12  proposals, that provide the best prospects for high-paying jobs 
 18.13  with high retention rates, or that are from more economically 
 18.14  distressed rural areas or communities. 
 18.15     Grantees must meet reporting and evaluation requirements 
 18.16  established by the board. 
 18.17     Sec. 8.  [136F.77] [EQUITY INVESTMENTS.] 
 18.18     Subdivision 1.  [POWERS OF BOARD.] The board may acquire an 
 18.19  interest in a product or a private business entity for the 
 18.20  purpose of developing and providing educational materials and 
 18.21  related programs or services to further the mission of the 
 18.22  Minnesota state colleges and universities and foster the 
 18.23  economic growth of the state.  The board may enter into joint 
 18.24  venture agreements with private corporations to develop 
 18.25  educational materials and related programs or services.  Any 
 18.26  proceeds from the investments or ventures are appropriated to 
 18.27  the board.  The state is not liable for any obligations or 
 18.28  liabilities that arise from investments under this section.  The 
 18.29  board must report annually by September 1 to the legislature 
 18.30  regarding its earnings from partnerships and the disposition of 
 18.31  those earnings.  
 18.32     Subd. 2.  [CONSULTATION REQUIRED.] Prior to entering into a 
 18.33  joint venture agreement under this section, the board shall 
 18.34  consult with appropriate exclusive bargaining representatives 
 18.35  and must address topics such as employee protections, 
 18.36  instructional services, information availability, and reporting 
 19.1   conflicts of interest. 
 19.2      Subd. 3.  [NO ABROGATION.] Nothing in this section shall 
 19.3   abrogate the provisions of sections 43A.047 and 136F.581. 
 19.4      Sec. 9.  [144.994] [PROFESSIONAL BOXING REGULATION.] 
 19.5      Subdivision 1.  [GENERALLY.] The commissioner of health 
 19.6   shall regulate professional boxing matches in Minnesota.  For 
 19.7   the purposes of this section, "professional boxing matches" 
 19.8   means boxing contests held in Minnesota between individuals for 
 19.9   financial compensation, but does not include boxing contests 
 19.10  regulated by an amateur sports organization. 
 19.11     Subd. 2.  [COMPLIANCE WITH FEDERAL LAW.] The commissioner 
 19.12  shall act as Minnesota's state boxing commission for the 
 19.13  purposes of the Professional Boxing Safety Act, United States 
 19.14  Code, title 15, sections 6301 to 6313, and shall ensure that 
 19.15  safety standards, registration procedures, and other regulations 
 19.16  required by federal law are sufficient to protect the health and 
 19.17  safety of boxers. 
 19.18     Subd. 3.  [LIMITATION.] The commissioner shall not impose 
 19.19  regulations substantially more stringent than necessary to 
 19.20  protect boxers' health and safety and to fully comply with 
 19.21  federal requirements. 
 19.22     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2001. 
 19.23     Sec. 10.  Minnesota Statutes 1998, section 181A.12, 
 19.24  subdivision 1, is amended to read: 
 19.25     Subdivision 1.  [FINES; PENALTY.] Any employer who hinders 
 19.26  or delays the department or its authorized representative in the 
 19.27  performance of its duties under sections 181A.01 to 181A.12 or 
 19.28  refuses to admit the commissioner or an authorized 
 19.29  representative to any place of employment or refuses to make 
 19.30  certificates or lists available as required by sections 181A.01 
 19.31  to 181A.12, or otherwise violates any provisions of sections 
 19.32  181A.01 to 181A.12 or any rules issued pursuant thereto shall be 
 19.33  assessed a fine to be paid to the commissioner for deposit in 
 19.34  the general fund.  The fine may be recovered in a civil action 
 19.35  in the name of the department brought in the district court of 
 19.36  the county where the violation is alleged to have occurred or 
 20.1   the district court where the commissioner has an office.  Fines 
 20.2   are in the amounts as follows: 
 20.3        (a) employment of minors under the age of 14           
 20.4            (each employee)                                   $ 50 
 20.5                                                            $  500
 20.6        (b) employment of minors under the age of 16               
 20.7            during school hours while school is in session       
 20.8            (each employee)                                     50 
 20.9                                                               500
 20.10       (c) employment of minors under the age of 16               
 20.11           before 7:00 a.m. (each employee)                    50 
 20.12                                                              500
 20.13       (d) employment of minors under the age of 16               
 20.14           after 9:00 p.m. (each employee)                     50 
 20.15                                                              500
 20.16       (e) employment of a high school student under              
 20.17           the age of 18 in violation of section 181A.04,
 20.18           subdivision 6 (each employee)                      100
 20.19                                                            1,000
 20.20       (f) employment of minors under the age of 16               
 20.21           over eight hours a day (each employee)              50 
 20.22                                                              500
 20.23       (g) employment of minors under the age of 16        
 20.24           over 40 hours a week (each employee)                50 
 20.25                                                              500
 20.26       (h) employment of minors under the age of 18        
 20.27           in occupations hazardous or
 20.28           detrimental to their well-being as defined  
 20.29           by rule (each employee)                            100 
 20.30                                                            1,000 
 20.31       (i) employment of minors under the age of 16     
 20.32           in occupations hazardous or
 20.33           detrimental to their well-being as defined 
 20.34           by rule (each employee)                            100 
 20.35                                                            1,000
 20.36       (j) minors under the age of 18 injured in        
 21.1            hazardous employment (each employee)               500 
 21.2                                                             5,000
 21.3        (k) minors employed without proof of age         
 21.4            (each employee)                                     25 
 21.5                                                               250
 21.6      An employer who refuses to make certificates or lists 
 21.7   available as required by sections 181A.01 to 181A.12 shall be 
 21.8   assessed a $500 fine. 
 21.9      <b>EFFECTIVE DATE:</b>  This section is effective October 1, 2000. 
 21.10     Sec. 11.  [182.6545] [RIGHTS OF NEXT OF KIN UPON DEATH.] 
 21.11     In the case of a death of an employee, the department shall 
 21.12  make reasonable efforts to locate the employee's next of kin and 
 21.13  shall mail to them copies of the following: 
 21.14     (1) citations and notification of penalty; 
 21.15     (2) notices of hearings; 
 21.16     (3) complaints and answers; 
 21.17     (4) settlement agreements; 
 21.18     (5) orders and decisions; and 
 21.19     (6) notices of appeals. 
 21.20     In addition, the next of kin shall have the right to 
 21.21  request a consultation with the department regarding citations 
 21.22  and notification of penalties issued as a result of the 
 21.23  investigation of the employee's death.  For the purposes of this 
 21.24  section, "next of kin" refers to the nearest proper relative as 
 21.25  that term is defined by section 253B.03, subdivision 6, 
 21.26  paragraph (c). 
 21.27     Sec. 12.  Minnesota Statutes 1998, section 182.661, 
 21.28  subdivision 1, is amended to read: 
 21.29     Subdivision 1.  If, after an inspection or investigation, 
 21.30  the commissioner issues a citation under section 182.66, the 
 21.31  commissioner shall notify the employer by certified mail of the 
 21.32  penalty, if any, proposed to be assessed under section 182.666 
 21.33  and that the employer has 20 calendar days within which to file 
 21.34  a notice of contest and certification of service, on a form 
 21.35  provided by the commissioner, indicating that the employer 
 21.36  wishes to contest the citation, type of violation, proposed 
 22.1   assessment of penalty, or the period of time fixed in the 
 22.2   citation given for correction of violation.  A copy of the 
 22.3   citation and the proposed assessment of penalty shall also be 
 22.4   mailed to the authorized employee representative and including, 
 22.5   in the case of the death of an employee, to the next of kin if 
 22.6   requested.  If within 20 calendar days from the receipt of the 
 22.7   penalty notice issued by the commissioner the employer fails to 
 22.8   file the notice of contest, and no notice of contest is filed by 
 22.9   any employee or authorized representative of employees under 
 22.10  subdivision 3 within such time, the citation and assessment, as 
 22.11  proposed, shall be deemed a final order of the commissioner and 
 22.12  not subject to review by any court or agency. 
 22.13     Sec. 13.  Minnesota Statutes 1998, section 182.666, 
 22.14  subdivision 2, is amended to read: 
 22.15     Subd. 2.  Any employer who has received a citation for a 
 22.16  serious violation of its duties under section 182.653, or any 
 22.17  standard, rule, or order adopted under the authority of the 
 22.18  commissioner as provided in this chapter, shall be assessed a 
 22.19  fine not to exceed $7,000 for each violation.  If the violation 
 22.20  causes or contributes to the cause of the death of an employee, 
 22.21  the employer shall be assessed a fine of up to $25,000. 
 22.22     Sec. 14.  Minnesota Statutes 1998, section 182.666, is 
 22.23  amended by adding a subdivision to read: 
 22.24     Subd. 2a.  Notwithstanding any other provision of this 
 22.25  section, if any (1) serious, willful, or repeated violation 
 22.26  other than a violation of section 182.653, subdivision 2; or (2) 
 22.27  any failure to correct a violation pursuant to subdivision 4 
 22.28  causes or contributes to the death of an employee, the minimum 
 22.29  total nonnegotiable fine which shall be assessed for all 
 22.30  citations connected to the death of an employee is $50,000 if 
 22.31  there is a willful or repeated violation or $25,000 if there is 
 22.32  no willful or repeated violation. 
 22.33     Sec. 15.  Minnesota Statutes 1998, section 216C.41, 
 22.34  subdivision 3, is amended to read: 
 22.35     Subd. 3.  [ELIGIBILITY WINDOW.] Payments may be made under 
 22.36  this section only for electricity generated: 
 23.1      (a) from a qualified hydroelectric facility that is 
 23.2   operational and generating electricity before January 1 December 
 23.3   31, 2001; or 
 23.4      (b) from a qualified wind energy conversion facility that 
 23.5   is operational and generating electricity before January 1, 2005.
 23.6      Sec. 16.  [268.028] [ALIEN LABOR CERTIFICATION; PERFORMANCE 
 23.7   STANDARDS.] 
 23.8      The department of economic security shall have as a goal to 
 23.9   process completed applications for certification for permanent 
 23.10  alien laborers within 60 days of receipt of the completed 
 23.11  application. 
 23.12     Sec. 17.  Minnesota Statutes 1999 Supplement, section 
 23.13  268.085, subdivision 4, is amended to read: 
 23.14     Subd. 4.  [SOCIAL SECURITY BENEFITS.] (a) Any applicant 
 23.15  aged 62 or over shall be required to state when filing an 
 23.16  application for benefits and when filing continued requests for 
 23.17  benefits whether the applicant is receiving, has filed for, or 
 23.18  intends to file for, primary social security old age or 
 23.19  disability benefits for any week during the benefit year. 
 23.20     (b) There shall be deducted from an applicant's weekly 
 23.21  benefit amount 50 percent of the weekly equivalent of the 
 23.22  primary social security old age or disability benefit the 
 23.23  applicant has received, has filed for, or intends to file for, 
 23.24  with respect to that week. 
 23.25     (c) Notwithstanding paragraph (b), an applicant shall be 
 23.26  ineligible for benefits for any week with respect to which the 
 23.27  applicant is receiving, has received, or has filed for primary 
 23.28  social security disability benefits. 
 23.29  This paragraph shall not apply if the Social Security 
 23.30  Administration approved the collecting of primary social 
 23.31  security disability benefits each month the applicant was 
 23.32  employed during the base period.  
 23.33     (d) Information from the Social Security Administration 
 23.34  shall be considered conclusive, absent specific evidence showing 
 23.35  that the information was erroneous. 
 23.36     (e) Any applicant who receives primary social security old 
 24.1   age or disability benefits for periods that the applicant has 
 24.2   been paid reemployment compensation benefits shall be considered 
 24.3   overpaid those reemployment compensation benefits under section 
 24.4   268.18, subdivision 1. 
 24.5      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 24.6   following final enactment and is retroactive to August 1, 1999. 
 24.7      Sec. 18.  Minnesota Statutes 1998, section 268.362, 
 24.8   subdivision 2, is amended to read: 
 24.9      Subd. 2.  [GRANT APPLICATIONS; AWARDS.] Interested eligible 
 24.10  organizations must apply to the commissioner for the grants.  
 24.11  The advisory committee must review the applications and provide 
 24.12  to the commissioner a list of recommended eligible organizations 
 24.13  that the advisory committee determines meet the requirements for 
 24.14  receiving a grant.  The total grant award for any program may 
 24.15  not exceed $80,000 $150,000 per year.  In awarding grants, the 
 24.16  advisory committee and the commissioner must give priority to: 
 24.17     (1) continuing and expanding effective programs by 
 24.18  providing grant money to organizations that are operating or 
 24.19  have operated a successful program that meets the program 
 24.20  purposes under section 268.364; and 
 24.21     (2) distributing programs throughout the state through 
 24.22  start-up grants for programs in areas that are not served by an 
 24.23  existing program. 
 24.24     To receive a grant under this section, the eligible 
 24.25  organization must match the grant money with at least an equal 
 24.26  amount of nonstate money.  The commissioner must verify that the 
 24.27  eligible organization has matched the grant money.  Nothing in 
 24.28  this subdivision shall prevent an eligible organization from 
 24.29  applying for and receiving grants for more than one program.  A 
 24.30  grant received by an eligible organization from the federal 
 24.31  Youthbuild Project under United States Code, title 42, section 
 24.32  5091, is nonstate money and may be used to meet the state match 
 24.33  requirement.  State grant money awarded under this section may 
 24.34  be used by grantee organizations for match requirements of a 
 24.35  federal Youthbuild Project. 
 24.36     Sec. 19.  Minnesota Statutes 1999 Supplement, section 
 25.1   268.98, subdivision 3, is amended to read: 
 25.2      Subd. 3.  [COST LIMITATIONS.] (a) For purposes of sections 
 25.3   268.9781 and 268.9782, funds allocated to a grantee are subject 
 25.4   to the following limitations: 
 25.5      (1) a maximum of 15 percent for administration in a worker 
 25.6   adjustment services plan and ten percent in a dislocation event 
 25.7   services grant; 
 25.8      (2) a minimum of 50 percent for provision of training 
 25.9   assistance; 
 25.10     (3) no more than ten percent statewide may be allocated 
 25.11  annually a maximum of 15 percent may be allocated for support 
 25.12  services, as defined in section 268.975, subdivision 13; except, 
 25.13  that if the commissioner finds it essential for a specific grant 
 25.14  or plan the maximum that may be allocated for support services 
 25.15  is 20 percent; and 
 25.16     (4) the balance used for provision of basic readjustment 
 25.17  assistance. 
 25.18     (b) A waiver of the cost limitation on providing training 
 25.19  assistance may be requested.  The waiver may not permit less 
 25.20  than 30 percent of the funds be spent on training assistance. 
 25.21     (c) The commissioner shall prescribe the form and manner 
 25.22  for submission of an application for a waiver under paragraph 
 25.23  (b).  Criteria for granting a waiver shall be established by the 
 25.24  commissioner in consultation with the workforce development 
 25.25  council. 
 25.26     Sec. 20.  Minnesota Statutes 1999 Supplement, section 
 25.27  326.105, is amended to read: 
 25.28     326.105 [FEES.] 
 25.29     The fee for licensure or renewal of licensure as an 
 25.30  architect, professional engineer, land surveyor, landscape 
 25.31  architect, or geoscience professional is $104 $120 per biennium. 
 25.32  The fee for certification as a certified interior designer or 
 25.33  for renewal of the certificate is $104 $120 per biennium.  The 
 25.34  fee for an architect applying for original certification as a 
 25.35  certified interior designer is $50 per biennium.  The initial 
 25.36  license or certification fee for all professions is $104 $120.  
 26.1   The renewal fee shall be paid biennially on or before June 30 of 
 26.2   each even-numbered year.  The renewal fee, when paid by mail, is 
 26.3   not timely paid unless it is postmarked on or before June 30 of 
 26.4   each even-numbered year.  The application fee is $25 for 
 26.5   in-training applicants and $75 for professional license 
 26.6   applicants. 
 26.7      The fee for monitoring licensing examinations for 
 26.8   applicants is $25, payable by the applicant. 
 26.9      Sec. 21.  [326.2441] [INSPECTION FEE SCHEDULE.] 
 26.10     Subdivision 1.  [SCHEDULE.] State electrical inspection 
 26.11  fees shall be paid according to subdivisions 2 to 13. 
 26.12     Subd. 2.  [FEE FOR EACH SEPARATE INSPECTION.] The minimum 
 26.13  fee for each separate inspection of an installation, 
 26.14  replacement, alteration, or repair is $20. 
 26.15     Subd. 3.  [FEE FOR SERVICES, GENERATORS, OTHER POWER SUPPLY 
 26.16  SOURCES, OR FEEDERS TO SEPARATE STRUCTURES.] The inspection fee 
 26.17  for the installation, addition, alteration, or repair of each 
 26.18  service, change of service, temporary service, generator, other 
 26.19  power supply source, or feeder to a separate structure is: 
 26.20     (1) 0 ampere to and including 400 ampere capacity, $25; 
 26.21     (2) 401 ampere to and including 800 ampere capacity, $50; 
 26.22  and 
 26.23     (3) ampere capacity above 800, $75. 
 26.24     Where multiple disconnects are grouped at a single location 
 26.25  and are supplied by a single set of supply conductors the 
 26.26  cumulative rating of the overcurrent devices shall be used to 
 26.27  determine the supply ampere capacity. 
 26.28     Subd. 4.  [FEE FOR CIRCUITS, FEEDERS, FEEDER TAPS, OR SETS 
 26.29  OF TRANSFORMER SECONDARY CONDUCTORS.] The inspection fee for the 
 26.30  installation, addition, alteration, or repair of each circuit, 
 26.31  feeder, feeder tap, or set of transformer secondary conductors, 
 26.32  including the equipment served, is: 
 26.33     (1) 0 ampere to and including 200 ampere capacity, $5; and 
 26.34     (2) ampere capacity above 200, $10. 
 26.35     Subd. 5.  [LIMITATIONS TO FEES OF SUBDIVISIONS 3 AND 
 26.36  4.] (a) The fee for a one-family dwelling and each dwelling unit 
 27.1   of a two-family dwelling with a supply of up to 500 amperes 
 27.2   where a combination of ten or more sources of supply, feeders, 
 27.3   or circuits are installed, added, altered, repaired, or extended 
 27.4   is $80.  This fee applies to each separate installation for new 
 27.5   dwellings and additions, alterations, or repairs to existing 
 27.6   dwellings and includes not more than two inspections.  The fee 
 27.7   for additional inspections or other installations is that 
 27.8   specified in subdivisions 2 to 4.  The installer may submit fees 
 27.9   for additional inspections when filing the request for 
 27.10  electrical inspection. 
 27.11     (b) The fee for each dwelling unit of a multifamily 
 27.12  dwelling with three to 12 dwelling units is $50 and the fee for 
 27.13  each additional dwelling unit is $25.  These fees include only 
 27.14  inspection of the wiring within individual dwelling units and 
 27.15  the final feeder to that unit.  This limitation is subject to 
 27.16  the following conditions: 
 27.17     (1) the multifamily dwelling is provided with common 
 27.18  service equipment and each dwelling unit is supplied by a 
 27.19  separate feeder.  The fee for multifamily dwelling services or 
 27.20  other power source supplies and all other circuits is that 
 27.21  specified in subdivisions 2 to 4; and 
 27.22     (2) this limitation applies only to new installations for 
 27.23  multifamily dwellings where the majority of the individual 
 27.24  dwelling units are available for inspection during each 
 27.25  inspection trip. 
 27.26     (c) A separate request for electrical inspection form must 
 27.27  be filed for each dwelling unit that is supplied with an 
 27.28  individual set of service entrance conductors.  These fees are 
 27.29  the one-family dwelling rate specified in paragraph (a). 
 27.30     Subd. 6.  [ADDITIONS TO FEES OF SUBDIVISIONS 3 TO 5.] (a) 
 27.31  The fee for the electrical supply for each manufactured home 
 27.32  park lot is $25.  This fee includes the service or feeder 
 27.33  conductors up to and including the service equipment or 
 27.34  disconnecting means.  The fee for feeders and circuits that 
 27.35  extend from the service or disconnecting means is that specified 
 27.36  in subdivision 4. 
 28.1      (b) The fee for each recreational vehicle site electrical 
 28.2   supply equipment is $5.  The fee for recreational vehicle park 
 28.3   services, feeders, and circuits is that specified in 
 28.4   subdivisions 3 and 4. 
 28.5      (c) The fee for each street, parking lot, or outdoor area 
 28.6   lighting standard is $1, and the fee for each traffic signal 
 28.7   standard is $5.  Circuits originating within the standard or 
 28.8   traffic signal controller shall not be used when computing the 
 28.9   fee. 
 28.10     (d) The fee for transformers for light, heat, and power is 
 28.11  $10 for transformers rated up to ten kilovolt-amperes and $20 
 28.12  for transformers rated in excess of ten kilovolt-amperes. 
 28.13     (e) The fee for transformers and electronic power supplies 
 28.14  for electric signs and outline lighting is $5 per unit. 
 28.15     (f) The fee for alarm, communication, remote control, and 
 28.16  signaling circuits or systems, and circuits of less than 50 
 28.17  volts, is 50 cents for each system device or apparatus. 
 28.18     (g) The fee for each separate inspection of the bonding for 
 28.19  a swimming pool, spa, fountain, an equipotential plane for an 
 28.20  agricultural confinement area, or similar installation shall be 
 28.21  $20.  Bonding conductors and connections require an inspection 
 28.22  before being concealed. 
 28.23     (h) The fee for all wiring installed on center pivot 
 28.24  irrigation booms is $40. 
 28.25     (i) The fee for retrofit modifications to existing lighting 
 28.26  fixtures is 25 cents per lighting fixture. 
 28.27     Subd. 7.  [INVESTIGATION FEES:  WORK WITHOUT A REQUEST FOR 
 28.28  ELECTRICAL INSPECTION.] (a) Whenever any work for which a 
 28.29  request for electrical inspection is required by the board has 
 28.30  begun without the request for electrical inspection form being 
 28.31  filed with the board, a special investigation shall be made 
 28.32  before a request for electrical inspection form is accepted by 
 28.33  the board. 
 28.34     (b) An investigation fee, in addition to the full fee 
 28.35  required by subdivisions 1 to 6, shall be paid before an 
 28.36  inspection is made.  The investigation fee is two times the 
 29.1   hourly rate specified in subdivision 10 or the inspection fee 
 29.2   required by subdivisions 1 to 6, whichever is greater, not to 
 29.3   exceed $1,000.  The payment of the investigation fee does not 
 29.4   exempt any person from compliance with all other provisions of 
 29.5   the board rules or statutes nor from any penalty prescribed by 
 29.6   law. 
 29.7      Subd. 8.  [REINSPECTION FEE.] When reinspection is 
 29.8   necessary to determine whether unsafe conditions have been 
 29.9   corrected and the conditions are not the subject of an appeal 
 29.10  pending before the board or any court, a reinspection fee of $20 
 29.11  may be assessed in writing by the inspector. 
 29.12     Subd. 9.  [SUPPLEMENTAL FEE.] When inspections scheduled by 
 29.13  the installer are preempted, obstructed, prevented, or otherwise 
 29.14  not able to be completed as scheduled due to circumstances 
 29.15  beyond the control of the inspector, a supplemental inspection 
 29.16  fee of $20 may be assessed in writing by the inspector. 
 29.17     Subd. 10.  [SPECIAL INSPECTION.] For inspections not 
 29.18  covered in this section, or for requested special inspections or 
 29.19  services, the fee shall be $30 per hour, including travel time, 
 29.20  plus 31 cents per mile traveled, plus the reasonable cost of 
 29.21  equipment or material consumed.  This provision is applicable to 
 29.22  inspection of empty conduits and other jobs as may be determined 
 29.23  by the board.  This fee may also be assessed when installations 
 29.24  are not accessible by roadway and require alternate forms of 
 29.25  transportation.  
 29.26     Subd. 11.  [INSPECTION OF TRANSITORY PROJECTS.] (a) For 
 29.27  inspection of transitory projects including, but not limited to, 
 29.28  festivals, fairs, carnivals, circuses, shows, production sites, 
 29.29  and portable road construction plants, the inspection procedures 
 29.30  and fees are as specified in paragraphs (b) to (i). 
 29.31     (b) The fee for inspection of each generator or other 
 29.32  source of supply is that specified in subdivision 3.  A like fee 
 29.33  is required at each engagement or setup. 
 29.34     (c) In addition to the fee for generators or other sources 
 29.35  of supply, there must be an inspection of all installed feeders, 
 29.36  circuits, and equipment at each engagement or setup at the 
 30.1   hourly rate specified in subdivision 10, with a two-hour minimum.
 30.2      (d) An owner, operator, or appointed representative of a 
 30.3   transitory enterprise including, but not limited to, festivals, 
 30.4   fairs, carnivals, circuses, production companies, shows, 
 30.5   portable road construction plants, and similar enterprises shall 
 30.6   notify the board of its itinerary or schedule and make 
 30.7   application for initial inspection a minimum of 14 days before 
 30.8   its first engagement or setup.  An owner, operator, or appointed 
 30.9   representative of a transitory enterprise who fails to notify 
 30.10  the board 14 days before its first engagement or setup may be 
 30.11  subject to the investigation fees specified in subdivision 7.  
 30.12  The owner, operator, or appointed representative shall request 
 30.13  inspection and pay the inspection fee for each subsequent 
 30.14  engagement or setup at the time of the initial inspection.  For 
 30.15  subsequent engagements or setups not listed on the itinerary or 
 30.16  schedule submitted to the board and where the board is not 
 30.17  notified at least 48 hours in advance, a charge of $100 may be 
 30.18  made in addition to all required fees. 
 30.19     (e) Amusement rides, devices, concessions, attractions, or 
 30.20  other units must be inspected at their first appearance of the 
 30.21  year.  The inspection fee is $20 per unit with a supply of up to 
 30.22  60 amperes and $30 per unit with a supply above 60 amperes. 
 30.23     (f) An additional fee at the hourly rate specified in 
 30.24  subdivision 10 must be charged for additional time spent by each 
 30.25  inspector if equipment is not ready or available for inspection 
 30.26  at the time and date specified on the application for initial 
 30.27  inspection or the request for electrical inspection form. 
 30.28     (g) In addition to the fees specified in paragraphs (a) and 
 30.29  (b), a fee of two hours at the hourly rate specified in 
 30.30  subdivision 10 must be charged for inspections required to be 
 30.31  performed on Saturdays, Sundays, holidays, or after regular 
 30.32  business hours. 
 30.33     (h) The fee for reinspection of corrections or supplemental 
 30.34  inspections where an additional trip is necessary may be 
 30.35  assessed as specified in subdivision 8. 
 30.36     (i) The board may retain the inspection fee when an owner, 
 31.1   operator, or appointed representative of a transitory enterprise 
 31.2   fails to notify the board at least 48 hours in advance of a 
 31.3   scheduled inspection that is canceled. 
 31.4      Subd. 12.  [HANDLING FEE.] The handling fee to pay the cost 
 31.5   of printing and handling of the form requesting an inspection is 
 31.6   $1. 
 31.7      Subd. 13.  [NATIONAL ELECTRICAL CODE USED FOR 
 31.8   INTERPRETATION OF PROVISIONS.] For purposes of interpretation of 
 31.9   this section and Minnesota Rules, chapter 3800, the most 
 31.10  recently adopted edition of the National Electrical Code shall 
 31.11  be prima facie evidence of the definitions, interpretations, and 
 31.12  scope of words and terms used.  
 31.13     Sec. 22.  Minnesota Statutes 1998, section 345.31, is 
 31.14  amended by adding a subdivision to read: 
 31.15     Subd. 6a.  [MONEY ORDER.] "Money order" includes an express 
 31.16  money order and a personal money order, on which the remitter is 
 31.17  the purchaser.  The term does not include a bank order or any 
 31.18  other instrument sold by a financial organization if the seller 
 31.19  has obtained the name and address of the payee. 
 31.20     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2001. 
 31.21     Sec. 23.  [345.321] [DORMANCY CHARGE FOR MONEY ORDERS.] 
 31.22     Notwithstanding any law to the contrary, a holder may 
 31.23  annually deduct, from a money order presumed abandoned, a charge 
 31.24  imposed by reason of the owner's failure to claim the property 
 31.25  within a specified time.  The holder may deduct the charge only 
 31.26  if:  (1) there is a valid and enforceable written contract 
 31.27  between the holder and the owner under which the holder may 
 31.28  impose the charge; (2) the holder regularly imposes the charge; 
 31.29  and (3) the charge is not regularly reversed or otherwise 
 31.30  canceled.  The total amount of the deduction is limited to an 
 31.31  amount that is not unconscionable. 
 31.32     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2001. 
 31.33     Sec. 24.  Minnesota Statutes 1998, section 345.39, 
 31.34  subdivision 1, is amended to read: 
 31.35     Subdivision 1.  [PRESUMED ABANDONMENT.] All intangible 
 31.36  personal property, not otherwise covered by sections 345.31 to 
 32.1   345.60, including any income or increment thereon, but excluding 
 32.2   any charges that may lawfully be withheld, that is held or owing 
 32.3   in this state in the ordinary course of the holder's business 
 32.4   and has remained unclaimed by the owner for more than three 
 32.5   years after it became payable or distributable is presumed 
 32.6   abandoned.  Property covered by this section includes, but is 
 32.7   not limited to:  (a) unclaimed worker's compensation; (b) 
 32.8   deposits or payments for repair or purchase of goods or 
 32.9   services; (c) credit checks or memos, or customer overpayments; 
 32.10  (d) unidentified remittances, unrefunded overcharges; (e) unpaid 
 32.11  claims, unpaid accounts payable or unpaid commissions; (f) 
 32.12  unpaid mineral proceeds, royalties or vendor checks; and (g) 
 32.13  credit balances, accounts receivable and miscellaneous 
 32.14  outstanding checks.  This section does not include money orders. 
 32.15  "Intangible property" does not include gift certificates, gift 
 32.16  cards, or layaway accounts issued or maintained by any person in 
 32.17  the business of selling tangible property or services at retail 
 32.18  and such items shall not be subject to this section. 
 32.19     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2001. 
 32.20     Sec. 25.  Laws 1999, chapter 223, article 2, section 81, as 
 32.21  amended by Laws 1999, chapter 249, section 12, is amended to 
 32.22  read: 
 32.23     Sec. 81.  [EFFECTIVE DATES.] 
 32.24     Section 48 is effective March 1, 2000. 
 32.25     Sections 59, 61, 62, 64, 65, and 79 are effective the day 
 32.26  following final enactment.  
 32.27     Section 67 is effective June 30, 1999. 
 32.28     Section 80, paragraph (a), is effective July 1, 1999. 
 32.29     Section 80, paragraphs paragraph (b) and (c), are is 
 32.30  effective July 1, 2000. 
 32.31     Section 80, paragraph (c), is effective July 1, 2001. 
 32.32     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 32.33  following final enactment. 
 32.34     Sec. 26.  [ASSUMPTION OF RESPONSIBILITIES BY COMMISSIONER 
 32.35  OF HEALTH.] 
 32.36     The commissioner of health shall consult with appropriate 
 33.1   knowledgeable individuals on an ongoing basis regarding the 
 33.2   development and enforcement of boxing regulations.  
 33.3   Responsibility for the regulation of professional boxing is 
 33.4   transferred to the commissioner of health as of July 1, 2001, 
 33.5   pursuant to Minnesota Statutes, section 15.039, except that 
 33.6   Minnesota Statutes, section 15.039, subdivision 7, shall not 
 33.7   apply to this transfer of responsibilities. 
 33.8      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 33.9   following final enactment. 
 33.10     Sec. 27.  [INFORMATION TO BE PROVIDED.] 
 33.11     The commissioner of labor and industry shall by September 
 33.12  1, 2000, complete a diligent and concerted effort to provide an 
 33.13  informational brochure to every employer in Minnesota who is 
 33.14  subject to the provisions of Minnesota Statutes, chapter 181A.  
 33.15  The brochure shall describe the requirements of Minnesota 
 33.16  Statutes, chapter 181A, shall describe the effects of section 
 33.17  10, and shall provide a telephone number that employers may call 
 33.18  for additional information regarding compliance with Minnesota 
 33.19  Statutes, chapter 181A. 
 33.20     <b>EFFECTIVE DATE:</b>  This section is effective the day 
 33.21  following final enactment. 
 33.22     Sec. 28.  [INSTRUCTION TO REVISOR.] 
 33.23     The revisor shall change references in Minnesota Rules from 
 33.24  Minnesota Rules, part 3800.3810, to Minnesota Statutes, section 
 33.25  326.2441. 
 33.26     Sec. 29.  [REPEALER.] 
 33.27     Minnesota Rules, part 3800.3810, is repealed. 
 33.28                             ARTICLE 3
 33.29          ENVIRONMENT, NATURAL RESOURCES, AND AGRICULTURE 
 33.30  Section 1.  [APPROPRIATIONS.] 
 33.31     The sums shown in the columns marked "APPROPRIATIONS" are 
 33.32  appropriated from the general fund, or any other fund named, to 
 33.33  the agencies and for the purposes specified in this article, to 
 33.34  be available for the fiscal years indicated for each purpose.  
 33.35  The figures "2000" and "2001" mean that the appropriation or 
 33.36  appropriations listed under them are available for the fiscal 
 34.1   year ending June 30, 2000, or June 30, 2001, respectively, and 
 34.2   if an earlier appropriation was made for that purpose for that 
 34.3   year, the appropriation in this article is added to it.  
 34.4                                              APPROPRIATIONS 
 34.5                                          Available for the Year 
 34.6                                              Ending June 30 
 34.7                                             2000         2001 
 34.8   Sec. 2.  POLLUTION CONTROL AGENCY        307,000        -0- 
 34.9   $306,000 is to administer the 
 34.10  wastewater infrastructure fund.  This 
 34.11  is a one-time appropriation and is 
 34.12  available until June 30, 2001. 
 34.13  The agency must allocate $104,000 of 
 34.14  the appropriation in Laws 1999, chapter 
 34.15  231, section 2, for WIF construction 
 34.16  program administration. 
 34.17  $1,000 is appropriated from the general 
 34.18  fund in fiscal year 2000 for the air 
 34.19  quality permitting process required to 
 34.20  allow an existing resource recovery 
 34.21  facility in Hennepin county to operate 
 34.22  at its maximum yearly capacity as 
 34.23  provided in section 30.  This is a 
 34.24  one-time appropriation and is available 
 34.25  until June 30, 2001.  This amount shall 
 34.26  be reimbursed by the applicant for the 
 34.27  permit. 
 34.28  $865,000 from the balance in the 
 34.29  environmental fund shall be canceled to 
 34.30  the general fund by June 30, 2001. 
 34.31  Sec. 3.  BOARD OF WATER     
 34.32  AND SOIL RESOURCES                      2,650,000       400,000
 34.33  $400,000 in fiscal year 2001 is for 
 34.34  professional and technical services to 
 34.35  replace wetlands under Minnesota 
 34.36  Statutes, section 103G.222, subdivision 
 34.37  1.  This is a one-time appropriation. 
 34.38  $2,650,000 in fiscal year 2000 is for 
 34.39  the purposes of sections 40 to 43.  
 34.40  This is a one-time appropriation and 
 34.41  remains available until expended.  
 34.42  Administrative costs may not exceed ten 
 34.43  percent of the appropriation. 
 34.44  Sec. 4.  NATURAL RESOURCES              5,414,000        -0-
 34.45  $3,955,000 in fiscal year 2000 is for 
 34.46  the settlement of legal costs incurred 
 34.47  by the Mille Lacs Band, St. Croix Band, 
 34.48  Bad River Band, Red Cliff Band, Lac du 
 34.49  Flambeau Band, Sokaogon Chippewa 
 34.50  Community, and the Lac Courte Oreilles 
 34.51  Band related to the 1837 Treaty 
 34.52  litigation. 
 34.53  The money necessary for the interest 
 34.54  payment on the settlement of legal 
 34.55  costs in the 1837 Treaty litigation is 
 34.56  appropriated in fiscal year 2000.  The 
 34.57  amount of the interest payment shall be 
 35.1   determined by applying an interest 
 35.2   amount of $614.30 for each day 
 35.3   beginning December 10, 1999, through 
 35.4   the day of payment of the legal costs. 
 35.5   $1,459,000 in fiscal year 2000 is for 
 35.6   grants to Lake, Cook, and St. Louis 
 35.7   counties for emergency communications 
 35.8   equipment, emergency response 
 35.9   equipment, and emergency planning and 
 35.10  training to respond to a major 
 35.11  wildfire.  Of this amount, $227,000 is 
 35.12  for a grant to Lake county, $430,000 is 
 35.13  for a grant to Cook county, and 
 35.14  $802,000 is for a grant to St. Louis 
 35.15  county.  St. Louis county must use a 
 35.16  portion of the grant to purchase a NOAA 
 35.17  warning system that can be used by all 
 35.18  of the counties receiving grants under 
 35.19  this section.  This appropriation is 
 35.20  available until June 30, 2001. 
 35.21  The commissioner may use up to 50 
 35.22  percent of a snowmobile maintenance and 
 35.23  grooming grant under Minnesota 
 35.24  Statutes, section 84.83, that was 
 35.25  available as of December 31, 1999, to 
 35.26  reimburse the intended recipient for 
 35.27  the actual cost of snowmobile trail 
 35.28  grooming equipment.  The costs must be 
 35.29  incurred in fiscal year 2000 and 
 35.30  recipients seeking reimbursement under 
 35.31  this paragraph must provide acceptable 
 35.32  documentation of the costs to the 
 35.33  commissioner.  All applications for 
 35.34  reimbursement under this paragraph must 
 35.35  be received no later than September 1, 
 35.36  2000. 
 35.37  Sec. 5.  AGRICULTURE                      870,000       869,000
 35.38  $120,000 in fiscal year 2000 and 
 35.39  $374,000 in fiscal year 2001 are for 
 35.40  expansion of the state meat inspection 
 35.41  program.  If the appropriation for 
 35.42  either year is insufficient, the 
 35.43  appropriation for the other year is 
 35.44  available. 
 35.45  $200,000 in fiscal year 2001 is for 
 35.46  grants to one or more cooperative 
 35.47  associations organized under Minnesota 
 35.48  Statutes, chapter 308A, primarily for 
 35.49  the purpose of facilitating the 
 35.50  production and marketing of short 
 35.51  rotation woody crops.  The grants must 
 35.52  be matched by $1 of nonstate money for 
 35.53  each dollar.  This is a one-time 
 35.54  appropriation and remains available 
 35.55  until expended. 
 35.56  $150,000 in fiscal year 2001 is for a 
 35.57  grant to the Center for Farm Financial 
 35.58  Management at the University of 
 35.59  Minnesota for purposes of a 
 35.60  comprehensive effort to develop 
 35.61  software and training materials to help 
 35.62  farmers improve their profitability 
 35.63  through sophisticated business 
 35.64  planning.  The software and training 
 35.65  will complement existing FINPACK farm 
 36.1   management tools.  No later than March 
 36.2   1, 2001, the center must report to the 
 36.3   agriculture policy and finance 
 36.4   committees of the senate and the house 
 36.5   of representatives on the software 
 36.6   development program.  This is a 
 36.7   one-time appropriation and is available 
 36.8   until March 31, 2001. 
 36.9   $300,000 in fiscal year 2000 is to 
 36.10  establish an agricultural water quality 
 36.11  and quantity management, research, 
 36.12  demonstration, and education program.  
 36.13  Of this appropriation, $150,000 is for 
 36.14  projects at the Lamberton site and 
 36.15  $150,000 is for projects at the Waseca 
 36.16  site.  The commissioner may contract 
 36.17  with the University of Minnesota or 
 36.18  other parties for the implementation of 
 36.19  parts of the program.  This 
 36.20  appropriation is available until spent 
 36.21  and is a one-time appropriation. 
 36.22  $150,000 in fiscal year 2000 is for the 
 36.23  farm advocates program.  This is a 
 36.24  one-time appropriation and is available 
 36.25  until June 30, 2001. 
 36.26  $170,000 in fiscal year 2001 is to 
 36.27  expand the concept of the Minnesota 
 36.28  grown pilot program under Laws 1998, 
 36.29  chapter 401, section 6.  This is a 
 36.30  one-time appropriation. 
 36.31  $300,000 in fiscal year 2000 is for 
 36.32  grants to organizations participating 
 36.33  in the farm wrap network and the rural 
 36.34  help network.  The grants may be used 
 36.35  for outreach services, legal and 
 36.36  accounting services, and informal 
 36.37  mediation support for farmers.  This is 
 36.38  a one-time appropriation and is 
 36.39  available until June 30, 2001. 
 36.40  The appropriation for fiscal year 2001 
 36.41  in Laws 1999, chapter 231, section 11, 
 36.42  subdivision 2, for the dairy producers 
 36.43  board is canceled. 
 36.44  Sec. 6.  BOARD OF ANIMAL HEALTH          245,000         -0- 
 36.45  $245,000 is for continued efforts to 
 36.46  control pseudorabies in swine.  This 
 36.47  appropriation may be used to cover the 
 36.48  costs of pseudorabies monitoring, 
 36.49  vaccines, blood tests, and laboratory 
 36.50  fees.  This is a one-time 
 36.51  appropriation, is in addition to the 
 36.52  appropriation in Laws 1999, chapter 45, 
 36.53  section 1, and is available until June 
 36.54  30, 2001. 
 36.55  Sec. 7.  MINNESOTA RESOURCES 
 36.56  The availability of the appropriation 
 36.57  for the following project is extended 
 36.58  to June 30, 2002:  Laws 1997, chapter 
 36.59  216, section 15, subdivision 4, 
 36.60  paragraph (c), clause (3), local 
 36.61  initiatives grants program.  $250,000 
 36.62  is to provide matching funds for an 
 37.1   ISTEA grant and to provide acquisition 
 37.2   and engineering costs for a proposed 
 37.3   trail between the city of Pelican 
 37.4   Rapids and Maplewood state park. 
 37.5   The availability of the appropriation 
 37.6   for the following project is extended 
 37.7   to June 30, 2001:  Laws 1997, chapter 
 37.8   216, section 15, subdivision 4, 
 37.9   paragraph (b), metropolitan regional 
 37.10  park system, for the portion related to 
 37.11  Hyland-Bush-Anderson Lake Park Reserve 
 37.12  development. 
 37.13     Sec. 8.  Minnesota Statutes 1998, section 17.4988, 
 37.14  subdivision 2, is amended to read: 
 37.15     Subd. 2.  [AQUATIC FARMING LICENSE.] (a) The annual fee for 
 37.16  an aquatic farming license is $275 $70. 
 37.17     (b) The aquatic farming license may contain endorsements 
 37.18  for the rights and privileges of the following licenses under 
 37.19  the game and fish laws.  The endorsement must be made upon 
 37.20  payment of the license fee prescribed in section 97A.475 for the 
 37.21  following licenses: 
 37.22     (1) minnow dealer license; 
 37.23     (2) minnow retailer license for sale of minnows as bait; 
 37.24     (3) minnow exporting license; 
 37.25     (4) aquatic farm vehicle endorsement, which includes a 
 37.26  minnow dealer vehicle license, a minnow retailer vehicle 
 37.27  license, an exporting minnow vehicle license, and a fish vendor 
 37.28  license; 
 37.29     (5) sucker egg taking license; and 
 37.30     (6) game fish packers license. 
 37.31     Sec. 9.  Minnesota Statutes 1998, section 17A.03, 
 37.32  subdivision 5, is amended to read: 
 37.33     Subd. 5.  [LIVESTOCK.] "Livestock" means cattle, sheep, 
 37.34  swine, horses intended for slaughter, mules, farmed cervidae, as 
 37.35  defined in section 17.451, subdivision 2, llamas, as defined in 
 37.36  section 17.455, subdivision 2, ratitae, as defined in section 
 37.37  17.453, subdivision 3, buffalo, and goats. 
 37.38     Sec. 10.  Minnesota Statutes 1998, section 18E.04, 
 37.39  subdivision 4, is amended to read: 
 37.40     Subd. 4.  [REIMBURSEMENT PAYMENTS.] (a) The board shall pay 
 37.41  a person that is eligible for reimbursement or payment under 
 38.1   subdivisions 1, 2, and 3 from the agricultural chemical response 
 38.2   and reimbursement account for:  
 38.3      (1) 90 percent of the total reasonable and necessary 
 38.4   corrective action costs greater than $1,000 and less than or 
 38.5   equal to $100,000; and 
 38.6      (2) 100 percent of the total reasonable and necessary 
 38.7   corrective action costs greater than $100,000 but less than or 
 38.8   equal to $200,000; 
 38.9      (3) 80 percent of the total reasonable and necessary 
 38.10  corrective action costs greater than $200,000 but less than or 
 38.11  equal to $300,000; and 
 38.12     (4) 60 percent of the total reasonable and necessary 
 38.13  corrective action costs greater than $300,000 but less than or 
 38.14  equal to $350,000.  
 38.15     (b) A reimbursement or payment may not be made until the 
 38.16  board has determined that the costs are reasonable and are for a 
 38.17  reimbursement of the costs that were actually incurred. 
 38.18     (c) The board may make periodic payments or reimbursements 
 38.19  as corrective action costs are incurred upon receipt of invoices 
 38.20  for the corrective action costs. 
 38.21     (d) Money in the agricultural chemical response and 
 38.22  reimbursement account is appropriated to the commissioner to 
 38.23  make payments and reimbursements directed by the board under 
 38.24  this subdivision.  
 38.25     (e) The board may not make reimbursement greater than the 
 38.26  maximum allowed under paragraph (a) for all incidents on a 
 38.27  single site which: 
 38.28     (1) were not reported at the time of release but were 
 38.29  discovered and reported after July 1, 1989; and 
 38.30     (2) may have occurred prior to July 1, 1989, as determined 
 38.31  by the commissioner. 
 38.32     (f) The board may only reimburse an eligible person for 
 38.33  separate incidents within a single site if the commissioner 
 38.34  determines that each incident is completely separate and 
 38.35  distinct in respect of location within the single site or time 
 38.36  of occurrence. 
 39.1      Sec. 11.  Minnesota Statutes 1998, section 41A.09, 
 39.2   subdivision 3a, is amended to read: 
 39.3      Subd. 3a.  [PAYMENTS.] (a) The commissioner of agriculture 
 39.4   shall make cash payments to producers of ethanol, anhydrous 
 39.5   alcohol, and wet alcohol located in the state.  These payments 
 39.6   shall apply only to ethanol, anhydrous alcohol, and wet alcohol 
 39.7   fermented in the state and produced at plants that have begun 
 39.8   production by June 30, 2000.  For the purpose of this 
 39.9   subdivision, an entity that holds a controlling interest in more 
 39.10  than one ethanol plant is considered a single producer.  The 
 39.11  amount of the payment for each producer's annual production is: 
 39.12     (1) except as provided in paragraph (b), for each gallon of 
 39.13  ethanol or anhydrous alcohol produced on or before June 30, 
 39.14  2000, or ten years after the start of production, whichever is 
 39.15  later, 20 cents per gallon; and 
 39.16     (2) for each gallon produced of wet alcohol on or before 
 39.17  June 30, 2000, or ten years after the start of production, 
 39.18  whichever is later, a payment in cents per gallon calculated by 
 39.19  the formula "alcohol purity in percent divided by five," and 
 39.20  rounded to the nearest cent per gallon, but not less than 11 
 39.21  cents per gallon. 
 39.22     The producer payments for anhydrous alcohol and wet alcohol 
 39.23  under this section may be paid to either the original producer 
 39.24  of anhydrous alcohol or wet alcohol or the secondary processor, 
 39.25  at the option of the original producer, but not to both. 
 39.26     No payments shall be made for production that occurs after 
 39.27  June 30, 2010. 
 39.28     (b) If the level of production at an ethanol plant 
 39.29  increases due to an increase in the production capacity of the 
 39.30  plant and the increased production begins by June 30, 2000, the 
 39.31  payment under paragraph (a), clause (1), applies to the 
 39.32  additional increment of production until ten years after the 
 39.33  increased production began.  Once a plant's production capacity 
 39.34  reaches 15,000,000 gallons per year, no additional increment 
 39.35  will qualify for the payment. 
 39.36     (c) The commissioner shall make payments to producers of 
 40.1   ethanol or wet alcohol in the amount of 1.5 cents for each 
 40.2   kilowatt hour of electricity generated using closed-loop biomass 
 40.3   in a cogeneration facility at an ethanol plant located in the 
 40.4   state.  Payments under this paragraph shall be made only for 
 40.5   electricity generated at cogeneration facilities that begin 
 40.6   operation by June 30, 2000.  The payments apply to electricity 
 40.7   generated on or before the date ten years after the producer 
 40.8   first qualifies for payment under this paragraph.  Total 
 40.9   payments under this paragraph in any fiscal year may not exceed 
 40.10  $750,000.  For the purposes of this paragraph: 
 40.11     (1) "closed-loop biomass" means any organic material from a 
 40.12  plant that is planted for the purpose of being used to generate 
 40.13  electricity or for multiple purposes that include being used to 
 40.14  generate electricity; and 
 40.15     (2) "cogeneration" means the combined generation of: 
 40.16     (i) electrical or mechanical power; and 
 40.17     (ii) steam or forms of useful energy, such as heat, that 
 40.18  are used for industrial, commercial, heating, or cooling 
 40.19  purposes. 
 40.20     (d) Except for new production capacity approved under 
 40.21  paragraph (i), clause (1), the total Payments under paragraphs 
 40.22  (a) and (b) to all producers may not 
 40.23  exceed $34,000,000 $37,000,000 in a fiscal year.  Total payments 
 40.24  under paragraphs (a) and (b) to a producer in a fiscal year may 
 40.25  not exceed $3,000,000. 
 40.26     (e) By the last day of October, January, April, and July, 
 40.27  each producer shall file a claim for payment for ethanol, 
 40.28  anhydrous alcohol, and wet alcohol production during the 
 40.29  preceding three calendar months.  A producer with more than one 
 40.30  plant shall file a separate claim for each plant.  A producer 
 40.31  shall file a separate claim for the original production capacity 
 40.32  of each plant and for each additional increment of production 
 40.33  that qualifies under paragraph (b).  A producer that files a 
 40.34  claim under this subdivision shall include a statement of the 
 40.35  producer's total ethanol, anhydrous alcohol, and wet alcohol 
 40.36  production in Minnesota during the quarter covered by the claim, 
 41.1   including anhydrous alcohol and wet alcohol produced or received 
 41.2   from an outside source.  A producer shall file a separate claim 
 41.3   for any amount claimed under paragraph (c).  For each claim and 
 41.4   statement of total ethanol, anhydrous alcohol, and wet alcohol 
 41.5   production filed under this subdivision, the volume of ethanol, 
 41.6   anhydrous alcohol, and wet alcohol production or amounts of 
 41.7   electricity generated using closed-loop biomass must be examined 
 41.8   by an independent certified public accountant in accordance with 
 41.9   standards established by the American Institute of Certified 
 41.10  Public Accountants. 
 41.11     (f) Payments shall be made November 15, February 15, May 
 41.12  15, and August 15.  A separate payment shall be made for each 
 41.13  claim filed.  Except as provided in paragraph (j), the total 
 41.14  quarterly payment to a producer under this paragraph, excluding 
 41.15  amounts paid under paragraph (c), may not exceed 
 41.16  $750,000.  Except for new production capacity approved under 
 41.17  paragraph (i), clause (1), if the total amount for which all 
 41.18  other producers are eligible in a quarter under paragraphs (a) 
 41.19  and (b) exceeds $8,500,000, the commissioner shall make payments 
 41.20  for production capacity that is subject to this restriction in 
 41.21  the order in which the portion of production capacity covered by 
 41.22  each claim went into production.  
 41.23     (g) If the total amount for which all producers are 
 41.24  eligible in a quarter under paragraph (c) exceeds the amount 
 41.25  available for payments, the commissioner shall make payments in 
 41.26  the order in which the plants covered by the claims began 
 41.27  generating electricity using closed-loop biomass. 
 41.28     (h) After July 1, 1997, new production capacity is only 
 41.29  eligible for payment under this subdivision if the commissioner 
 41.30  receives: 
 41.31     (1) an application for approval of the new production 
 41.32  capacity; 
 41.33     (2) an appropriate letter of long-term financial commitment 
 41.34  for construction of the new production capacity; and 
 41.35     (3) copies of all necessary permits for construction of the 
 41.36  new production capacity. 
 42.1      The commissioner may approve new production capacity based 
 42.2   on the order in which the applications are received.  
 42.3      (i) After April 22, 1998, the commissioner may only 
 42.4   approve:  (1) up to 12,000,000 gallons of new production 
 42.5   capacity at one plant that has not previously received approval 
 42.6   or payment for any production capacity; or (2) new production 
 42.7   capacity at existing plants not to exceed planned expansions 
 42.8   reported to the commissioner by February 1997.  The commissioner 
 42.9   may not approve any new production capacity after July 1, 1998, 
 42.10  except that a producer with an approved production capacity of 
 42.11  at least 12,000,000 gallons per year but less than 15,000,000 
 42.12  gallons per year prior to July 1, 1998, is approved for 
 42.13  15,000,000 gallons of production capacity.  
 42.14     (j) Notwithstanding the quarterly payment limits of 
 42.15  paragraph (f), the commissioner shall make an additional payment 
 42.16  in the eighth quarter of each fiscal biennium to ethanol 
 42.17  producers for the lesser of:  (1) 20 cents per gallon of 
 42.18  production in the eighth quarter of the biennium that is greater 
 42.19  than 3,750,000 gallons; or (2) the total amount of payments lost 
 42.20  during the first seven quarters of the biennium due to plant 
 42.21  outages, repair, or major maintenance.  Total payments to an 
 42.22  ethanol producer in a fiscal biennium, including any payment 
 42.23  under this paragraph, must not exceed the total amount the 
 42.24  producer is eligible to receive based on the producer's approved 
 42.25  production capacity.  The provisions of this paragraph apply 
 42.26  only to production losses that occur in quarters beginning after 
 42.27  December 31, 1999. 
 42.28     (k) For the purposes of this subdivision "new production 
 42.29  capacity" means annual ethanol production capacity that was not 
 42.30  allowed under a permit issued by the pollution control agency 
 42.31  prior to July 1, 1997, or for which construction did not begin 
 42.32  prior to July 1, 1997. 
 42.33     Sec. 12.  Minnesota Statutes 1998, section 41B.03, 
 42.34  subdivision 1, is amended to read: 
 42.35     Subdivision 1.  [ELIGIBILITY GENERALLY.] To be eligible for 
 42.36  a program in sections 41B.01 to 41B.23: 
 43.1      (1) a borrower must be a resident of Minnesota or a 
 43.2   domestic family farm corporation, as defined in section 500.24, 
 43.3   subdivision 2; and 
 43.4      (2) the borrower or one of the borrowers must be the 
 43.5   principal operator of the farm or, for a prospective homestead 
 43.6   redemption borrower, must have at one time been the principal 
 43.7   operator of a farm; and 
 43.8      (3) the borrower must not receive assistance under sections 
 43.9   41B.01 to 41B.23 exceeding an aggregate of $100,000 in loans 
 43.10  during the borrower's lifetime. 
 43.11     Sec. 13.  Minnesota Statutes 1998, section 41B.03, 
 43.12  subdivision 2, is amended to read: 
 43.13     Subd. 2.  [ELIGIBILITY FOR RESTRUCTURED LOAN.] In addition 
 43.14  to the eligibility requirements of subdivision 1, a prospective 
 43.15  borrower for a restructured loan must:  
 43.16     (1) have received at least 50 percent of average annual 
 43.17  gross income from farming for the past three years or, for 
 43.18  homesteaded property, received at least 40 percent of average 
 43.19  gross income from farming in the past three years, and farming 
 43.20  must be the principal occupation of the borrower; 
 43.21     (2) have a debt-to-asset ratio equal to or greater than 50 
 43.22  percent and in determining this ratio, the assets must be valued 
 43.23  at their current market value; 
 43.24     (3) have projected annual expenses, including operating 
 43.25  expenses, family living, and interest expenses after the 
 43.26  restructuring, that do not exceed 95 percent of the borrower's 
 43.27  projected annual income considering prior production history and 
 43.28  projected prices for farm production, except that the authority 
 43.29  may reduce the 95 percent requirement if it finds that other 
 43.30  significant factors in the loan application support the making 
 43.31  of the loan; and 
 43.32     (4) demonstrate substantial difficulty in meeting projected 
 43.33  annual expenses without restructuring the loan; and 
 43.34     (5) must have a total net worth, including assets and 
 43.35  liabilities of the borrower's spouse and dependents, of less 
 43.36  than $400,000 in 1999 and an amount in subsequent years which is 
 44.1   adjusted for inflation by multiplying $400,000 by the cumulative 
 44.2   inflation rate as determined by the United States All-Items 
 44.3   Consumer Price Index. 
 44.4      Sec. 14.  Minnesota Statutes 1998, section 41B.039, 
 44.5   subdivision 2, is amended to read: 
 44.6      Subd. 2.  [STATE PARTICIPATION.] The state may participate 
 44.7   in a new real estate loan with an eligible lender to a beginning 
 44.8   farmer to the extent of 45 percent of the principal amount of 
 44.9   the loan or $100,000 $125,000, whichever is less.  The interest 
 44.10  rates and repayment terms of the authority's participation 
 44.11  interest may be different than the interest rates and repayment 
 44.12  terms of the lender's retained portion of the loan. 
 44.13     Sec. 15.  Minnesota Statutes 1998, section 41B.04, 
 44.14  subdivision 8, is amended to read: 
 44.15     Subd. 8.  [STATE'S PARTICIPATION.] With respect to loans 
 44.16  that are eligible for restructuring under sections 41B.01 to 
 44.17  41B.23 and upon acceptance by the authority, the authority shall 
 44.18  enter into a participation agreement or other financial 
 44.19  arrangement whereby it shall participate in a restructured loan 
 44.20  to the extent of 45 percent of the primary principal or 
 44.21  $100,000 $150,000, whichever is less.  The authority's portion 
 44.22  of the loan must be protected during the authority's 
 44.23  participation by the first mortgage held by the eligible lender 
 44.24  to the extent of its participation in the loan. 
 44.25     Sec. 16.  Minnesota Statutes 1998, section 41B.042, 
 44.26  subdivision 4, is amended to read: 
 44.27     Subd. 4.  [PARTICIPATION LIMIT; INTEREST.] The authority 
 44.28  may participate in new seller-sponsored loans to the extent of 
 44.29  45 percent of the principal amount of the loan or 
 44.30  $100,000 $125,000, whichever is less.  The interest rates and 
 44.31  repayment terms of the authority's participation interest may be 
 44.32  different than the interest rates and repayment terms of the 
 44.33  seller's retained portion of the loan. 
 44.34     Sec. 17.  Minnesota Statutes 1998, section 41B.043, 
 44.35  subdivision 2, is amended to read: 
 44.36     Subd. 2.  [SPECIFICATIONS.] No direct loan may exceed 
 45.1   $35,000 or $100,000 $125,000 for a loan participation or be made 
 45.2   to refinance an existing debt.  Each direct loan and 
 45.3   participation must be secured by a mortgage on real property and 
 45.4   such other security as the authority may require. 
 45.5      Sec. 18.  Minnesota Statutes 1998, section 41B.045, 
 45.6   subdivision 2, is amended to read: 
 45.7      Subd. 2.  [LOAN PARTICIPATION.] The authority may 
 45.8   participate in a livestock expansion loan with an eligible 
 45.9   lender to a livestock farmer who meets the requirements of 
 45.10  section 41B.03, subdivision 1, clauses (1) and (2), and who are 
 45.11  actively engaged in a livestock operation.  A prospective 
 45.12  borrower must have a total net worth, including assets and 
 45.13  liabilities of the borrower's spouse and dependents, of less 
 45.14  than $400,000 in 1999 and an amount in subsequent years which is 
 45.15  adjusted for inflation by multiplying $400,000 by the cumulative 
 45.16  inflation rate as determined by the United States All-Items 
 45.17  Consumer Price Index. 
 45.18     Participation is limited to 45 percent of the principal 
 45.19  amount of the loan or $250,000, whichever is less.  The interest 
 45.20  rates and repayment terms of the authority's participation 
 45.21  interest may be different from the interest rates and repayment 
 45.22  terms of the lender's retained portion of the loan.  Loans under 
 45.23  this program must not be included in the lifetime limitation 
 45.24  calculated under section 41B.03, subdivision 1. 
 45.25     Sec. 19.  [41B.048] [AGROFORESTRY LOAN PROGRAM.] 
 45.26     Subdivision 1.  [PURPOSE.] The purpose of the agroforestry 
 45.27  loan program is to provide low interest financing to farmers 
 45.28  during the growing period required to convert agricultural land 
 45.29  to agroforestry. 
 45.30     Subd. 2.  [ESTABLISHMENT.] The authority shall establish 
 45.31  and implement an agroforestry loan program to help finance the 
 45.32  production of short rotation woody crops.  The authority may 
 45.33  contract with a fiscal agent to provide an efficient delivery 
 45.34  system for this program. 
 45.35     Subd. 3.  [RULES.] The authority may adopt rules necessary 
 45.36  for administration of the program established under subdivision 
 46.1   2. 
 46.2      Subd. 4.  [DEFINITIONS.] (a) The definitions in this 
 46.3   subdivision apply to this section. 
 46.4      (b) "Fiscal agent" means any lending institution or other 
 46.5   organization of a for-profit or nonprofit nature that is in good 
 46.6   standing with the state of Minnesota that has the appropriate 
 46.7   business structure and trained personnel suitable to providing 
 46.8   efficient disbursement of loan funds and the servicing and 
 46.9   collection of loans over an extended period of time. 
 46.10     (c) "Growing cycle" means the number of years from planting 
 46.11  to harvest. 
 46.12     (d) "Harvest" means the day that the crop arrives at the 
 46.13  scale of the buyer of the crop. 
 46.14     (e) "Short rotation woody crops" or "crop" means hybrid 
 46.15  poplar and other woody plants that are harvested for their fiber 
 46.16  within 15 years of planting. 
 46.17     Subd. 5.  [ELIGIBILITY.] To be eligible for this program a 
 46.18  borrower must: 
 46.19     (1) be a resident of Minnesota or any entity eligible to 
 46.20  own farm land under section 500.24; 
 46.21     (2) be or plan to become a grower of short rotation woody 
 46.22  crops on agricultural land that is suitable for the profitable 
 46.23  production of short rotation woody crops; 
 46.24     (3) be a member of a producer-owned cooperative that will 
 46.25  contract to market the short rotation woody crop to be planted 
 46.26  by the borrower; 
 46.27     (4) demonstrate an ability to repay the loan; 
 46.28     (5) not receive assistance under this program for more than 
 46.29  $150,000 in the producer's lifetime; 
 46.30     (6) agree to work with appropriate local, state, and 
 46.31  federal agencies, and the marketing cooperative, to develop an 
 46.32  acceptable establishment and maintenance plan; 
 46.33     (7) agree not to plant short-rotation woody crops within 
 46.34  one-quarter of a mile of state or federally protected prairie; 
 46.35  and 
 46.36     (8) meet any other requirements the authority may impose by 
 47.1   administrative procedure or by rule. 
 47.2      Subd. 6.  [LOANS.] (a) The authority may disburse loans 
 47.3   through a fiscal agent to farmers and agricultural landowners 
 47.4   who are eligible under subdivision 5.  The total accumulative 
 47.5   loan principal must not exceed $75,000 per loan. 
 47.6      (b) The fiscal agent may impose a loan origination fee in 
 47.7   the amount of one percent of the total approved loan.  This fee 
 47.8   is to be paid by the borrower to the fiscal agent at the time of 
 47.9   loan closing. 
 47.10     (c) The loan may be disbursed over a period not to exceed 
 47.11  12 years. 
 47.12     (d) A borrower may receive loans, depending on the 
 47.13  availability of funds, for planted areas up to 160 acres for up 
 47.14  to: 
 47.15     (1) the total amount necessary for establishment of the 
 47.16  crop; 
 47.17     (2) the total amount of maintenance costs, including weed 
 47.18  control, during the first three years; and 
 47.19     (3) 70 percent of the estimated value of one year's growth 
 47.20  of the crop for years four through 12. 
 47.21     (e) Security for the loan must be the crop, a personal note 
 47.22  executed by the borrower, an interest in the land upon which the 
 47.23  crop is growing, and whatever other security is required by the 
 47.24  fiscal agent or the authority.  All recording fees must be paid 
 47.25  by the borrower. 
 47.26     (f) The authority may prescribe forms and establish an 
 47.27  application process for applicants to apply for a loan. 
 47.28     (g) The authority may impose a reasonable nonrefundable 
 47.29  application fee for each application for a loan under this 
 47.30  program.  The application fee is initially $50.  Application 
 47.31  fees received by the authority must be deposited in the 
 47.32  agroforestry loan program revolving fund established in 
 47.33  subdivision 7. 
 47.34     (h) Loans under the program must be made using money in the 
 47.35  agroforestry loan program revolving fund established in 
 47.36  subdivision 7. 
 48.1      (i) The interest payable on loans made by the authority for 
 48.2   the agroforestry loan program must, if funded by revenue bond 
 48.3   proceeds, be at a rate not less than the rate on the revenue 
 48.4   bonds, and may be established at a higher rate necessary to pay 
 48.5   costs associated with the issuance of the revenue bonds and a 
 48.6   proportionate share of the cost of administering the program.  
 48.7   The interest payable on loans for the agroforestry loan program 
 48.8   funded from sources other than revenue bond proceeds must be at 
 48.9   a rate determined by the authority. 
 48.10     (j) Loan principal balance outstanding plus all assessed 
 48.11  interest must be repaid within 120 days of harvest, but no later 
 48.12  than 15 years from planting. 
 48.13     Subd. 7.  [REVOLVING FUND.] There is established in the 
 48.14  state treasury an agroforestry loan program revolving fund that 
 48.15  is eligible to receive appropriations or the proceeds of bond 
 48.16  sales.  All repayments of financial assistance granted under 
 48.17  subdivision 2, including principal and interest, must be 
 48.18  deposited into this fund.  Interest earned on money in the fund 
 48.19  accrues to the fund, and money in the fund is appropriated to 
 48.20  the commissioner for purposes of the agroforestry loan program, 
 48.21  including costs incurred by the authority to establish and 
 48.22  administer the program. 
 48.23     Subd. 8.  [REVENUE BONDS.] The authority may issue revenue 
 48.24  bonds to finance the agroforestry loan program in accordance 
 48.25  with sections 41B.08 to 41B.15, 41B.17, and 41B.18.  Bonds may 
 48.26  be refunded by the issuance of refunding bonds in the manner 
 48.27  authorized by chapter 475.  
 48.28     Sec. 20.  [BIG BOG STATE RECREATION AREA.] 
 48.29     Subdivision 1.  [85.013] [Subd. 2c.] [BIG BOG STATE 
 48.30  RECREATION AREA, BELTRAMI COUNTY.] Big Bog state recreation area 
 48.31  is established in Beltrami county. 
 48.32     Subd. 2.  [PURPOSE.] The Big Bog state recreation area is 
 48.33  created to expand and diversify regional recreational 
 48.34  opportunities and to enrich the cultural, biological, and 
 48.35  historical opportunities for visitors to an area of the state 
 48.36  that has suffered severe economic distress.  The Big Bog 
 49.1   recreational area will also enhance public appreciation and 
 49.2   provide for the long-term protection of a unique ecosystem. 
 49.3      Subd. 3.  [BOUNDARIES.] The following described lands are 
 49.4   located within the boundaries of Big Bog state recreation area, 
 49.5   all in Beltrami county: 
 49.6      (1) Government Lots 1, 2, and 3 of Section 8, Township 154 
 49.7   North, Range 30 West, EXCEPT a tract in Government Lot 3 
 49.8   beginning 100 feet North of the South boundary of Government Lot 
 49.9   3 on the east right-of-way line of State Trunk Highway 72; 
 49.10  thence northerly 200 feet along said trunk highway; thence East 
 49.11  to the westerly right-of-way line of old Trunk Highway 72; 
 49.12  thence southerly 200 feet along said right-of-way line; thence 
 49.13  westerly to the point of beginning; 
 49.14     (2) all of Sections 25, 26, and 27; the east Half, the 
 49.15  Northwest Quarter, and the North Half of the Southwest Quarter 
 49.16  of Section 34; the North Half and the Southwest Quarter of 
 49.17  Section 35; the North Half, the East Half of the Southwest 
 49.18  Quarter, the Southwest Quarter of the Southwest Quarter, the 
 49.19  West Half of the Southeast Quarter, and the Southeast Quarter of 
 49.20  the Southeast Quarter of Section 36, all in Township 156 North, 
 49.21  Range 31 West; and 
 49.22     (3) all of Sections 1 and 2; the East Half of Section 3; 
 49.23  the East Half, the Southeast Quarter of the Northwest Quarter, 
 49.24  the East Half of the Southwest Quarter, and the Southwest 
 49.25  Quarter of the Southwest Quarter of Section 10; and all of 
 49.26  Sections 11, 12, 13, 14, and 15, all in Township 155 North, 
 49.27  Range 31 West. 
 49.28     Subd. 4.  [ADMINISTRATION.] The commissioner of natural 
 49.29  resources shall administer the area according to Minnesota 
 49.30  Statutes, section 86A.05, subdivision 3, subject to existing 
 49.31  rules and regulations for state recreation areas. 
 49.32     Subd. 5.  [CONTINUED LEASE OF LAND IN BIG BOG STATE 
 49.33  RECREATION AREA.] Notwithstanding Minnesota Statutes, sections 
 49.34  85.011, 85.013, 85.053, and 86A.05, the commissioner of natural 
 49.35  resources may continue to lease, upon the terms and conditions 
 49.36  as the commissioner may prescribe and in the form approved by 
 50.1   the attorney general, land within the Big Bog state recreation 
 50.2   area that is included in lease number 144-15-109 to Waskish 
 50.3   township. 
 50.4      Sec. 21.  [RED RIVER STATE RECREATION AREA.] 
 50.5      Subdivision 1.  [85.013] [Subd. 20a.] [RED RIVER STATE 
 50.6   RECREATION AREA, POLK COUNTY.] The Red River state recreation 
 50.7   area is established in Polk county. 
 50.8      Subd. 2.  [BOUNDARIES.] The following described lands are 
 50.9   located within the boundaries of the Red River state recreation 
 50.10  area, all in Polk county: 
 50.11     (1) Lots 3 to 14 of Block 2 including streets and alleys 
 50.12  adjacent thereto in Riverside Addition; 
 50.13     (2) Block 1 including streets and alleys adjacent thereto 
 50.14  in Surprenant's Addition; 
 50.15     (3) Lots 1 to 24 including streets and alleys adjacent 
 50.16  thereto in Grigg's Addition; 
 50.17     (4) Lots 2, 4, 6, 8, 10, and 12 of Block 1, Block 3, Lots 1 
 50.18  to 10 of Block 4, and Lots 1 to 12 in Blocks A and B including 
 50.19  streets and alleys adjacent thereto in Grand Forks East; 
 50.20     (5) Lots 1 to 5 of Block 1 and Blocks 2 to 14 including 
 50.21  streets and alleys adjacent thereto in Lake Park Addition; 
 50.22     (6) Lots 1 to 7 and Lots 19 to 24 of Block 2 including 
 50.23  streets and alleys adjacent thereto in E.B. Frederick's 
 50.24  Addition; 
 50.25     (7) Lots 1 to 3 of Block 1 and Blocks 2, 3, and 4 including 
 50.26  streets and alleys adjacent thereto in Budge's First Addition; 
 50.27     (8) Lots 1 to 4 of Block 1 including streets and alleys 
 50.28  adjacent thereto in River Heights 1st Addition; 
 50.29     (9) Blocks 1 and 2 including streets and alleys adjacent 
 50.30  thereto in Thompson's Addition; 
 50.31     (10) Lots 1 to 12 of Block 1, Lots 4 to 12 of Block 2, 
 50.32  Block 3, and Lots 1 to 4 of Block 4 in Edwards Outlots and 
 50.33  Outlots 4 to 8 including streets and alleys adjacent thereto in 
 50.34  Auditor's Plat of Outlots; 
 50.35     (11) Auditor's Plat of Mrs. Hines' Outlot; 
 50.36     (12) Lots 6, 8, 10, 12, 14, 16, 18, 20, 22, and 24 of Block 
 51.1   3 and Lots 1 to 8 of Block 2 including streets and alleys 
 51.2   adjacent thereto in the Original Townsite of East Grand Forks; 
 51.3      (13) Blocks 1 to 8 including streets and alleys adjacent 
 51.4   thereto in Woodland Addition; 
 51.5      (14) Lots 1, 3, 5, 7, 9, 11, 13, 15, 17, 19, 21, and 23 of 
 51.6   Block 31 and Blocks 32 to 38 including streets and alleys 
 51.7   adjacent thereto in Traill's Addition; 
 51.8      (15) Blocks 2 to 16 including streets and alleys adjacent 
 51.9   thereto in Elm Grove; 
 51.10     (16) Block 1, Lots 1 to 11 of Block 2, and Lots 1 to 11 of 
 51.11  Block 3 including streets and alleys adjacent thereto in O'Leary 
 51.12  and Ryan's Addition to Elm Grove; 
 51.13     (17) Lots 6 to 10 of Block 1, Lots 8 to 35 of Block 2, 
 51.14  Blocks 3, 4, and 5 including streets and alleys adjacent thereto 
 51.15  in Folson Park Addition; 
 51.16     (18) Lots 1 to 6 of Block 1 in Jerome's Addition; 
 51.17     (19) Lots 1 to 4 of Block 3 in Prestige Addition; 
 51.18     (20) Lots 1 to 14 of Block 1 in Riverview Addition; 
 51.19     (21) Lots 6 to 16 of Block 3 in Riverview 3rd Addition; 
 51.20     (22) Lots 1 to 4 of Block 1 in Riverview 4th Addition; 
 51.21     (23) Lots 1 and 2 of Block 1 in Riverview 5th Addition; 
 51.22     (24) Lots 1 to 9 of Block 1 and Outlot A in Riverview 6th 
 51.23  Addition; 
 51.24     (25) Lots 1 to 18 of Block 1 and Lots 1 to 5 of Block 2 
 51.25  including streets and alleys adjacent thereto in Timberline 2nd 
 51.26  Addition; 
 51.27     (26) Lots 14 to 16 of Block 1 including streets and alleys 
 51.28  adjacent thereto in Timberline Addition; 
 51.29     (27) Lots 19 and 20 including streets and alleys adjacent 
 51.30  thereto in Murphy's Outlots; 
 51.31     (28) Lots 1 to 10 of Block 1 including streets and alleys 
 51.32  thereto in Croy's 2nd Addition; 
 51.33     (29) Lots 1 to 6 of Block 1 including the streets and 
 51.34  alleys adjacent thereto in Point of Woods 2nd Addition; 
 51.35     (30) Lots 1 to 6 of Block 1 including the streets and 
 51.36  alleys adjacent thereto in Point of Woods Addition; 
 52.1      (31) the unplatted portions of Government Lots 1, 2, and 3 
 52.2   of Section 35, Township 152 North, Range 50 West; 
 52.3      (32) all of Government Lot 7, the unplatted portion of 
 52.4   Government Lot 9, and that part of Government Lots 6 and 8 and 
 52.5   the Southeast Quarter of the Southeast Quarter lying 
 52.6   southwesterly of the southwesterly right-of-way line of the 
 52.7   Burlington Northern and Santa Fe Railroad of Section 1, Township 
 52.8   151 North, Range 50 West; 
 52.9      (33) the unplatted portions of Government Lots 2, 3, 4, 5, 
 52.10  and 6 of Section 2, Township 151 North, Range 50 West; 
 52.11     (34) all of Government Lots 1 and 2 of Section 11, Township 
 52.12  151 North, Range 50 West; 
 52.13     (35) all of Government Lots 1, 7, and 11, the unplatted 
 52.14  portions of Government Lots 3, 5, 9, and 10, and the Northeast 
 52.15  Quarter of the Northwest Quarter of Section 12, Township 151 
 52.16  North, Range 50; 
 52.17     (36) all of Government Lots 1 and 2, the Southwest Quarter 
 52.18  of the Northwest Quarter, and the Northwest Quarter of the 
 52.19  Southwest Quarter of Section 13, Township 151 North, Range 50 
 52.20  West; 
 52.21     (37) all of Government Lots 1, 2, 3, and 4 of Section 14; 
 52.22  Township 151 North, Range 50 West; 
 52.23     (38) that part of Government Lot 7 lying southwesterly of 
 52.24  the southwesterly right-of-way line of the Burlington Northern 
 52.25  and Santa Fe Railroad of Section 6, Township 151 North, Range 49 
 52.26  West; and 
 52.27     (39) all of Government Lots 2, 6, 7, and 9, the Northwest 
 52.28  Quarter of the Northeast Quarter, the Northeast Quarter of the 
 52.29  Northeast Quarter, the unplatted portions of Government Lots 3 
 52.30  and 5, and that part of Government Lot 1 and the Northeast 
 52.31  Quarter of the Northwest Quarter lying southwesterly of the 
 52.32  southwesterly right-of-way line of the Burlington Northern and 
 52.33  Santa Fe Railroad of Section 7, Township 151 North, Range 49 
 52.34  West.  
 52.35     Subd. 3.  [ADMINISTRATION.] The commissioner of natural 
 52.36  resources shall administer the area according to Minnesota 
 53.1   Statutes, section 86A.05, subdivision 3, subject to existing 
 53.2   rules and regulations for state recreation areas.  The 
 53.3   commissioner shall appoint a citizens' oversight committee to 
 53.4   assist with developing and managing the area.  The committee 
 53.5   shall serve without compensation and is exempt from Minnesota 
 53.6   Statutes, section 15.059. 
 53.7      Sec. 22.  Minnesota Statutes 1998, section 85.015, is 
 53.8   amended by adding a subdivision to read: 
 53.9      Subd. 8a.  [MILL TOWNS TRAIL.] (a) The trail shall 
 53.10  originate at a point commonly known as Faribault Junction in 
 53.11  Rice county, the termination point of the Sakatah Singing Hills 
 53.12  Trail, and shall extend through the towns of Faribault, Dundas, 
 53.13  Northfield, Waterford, and Randolph, to the termination point of 
 53.14  the Cannon Valley Trail in Cannon Falls.  The trail may be 
 53.15  located within the Cannon river wild, scenic, and recreational 
 53.16  land use district. 
 53.17     (b) The trail shall be developed primarily for riding and 
 53.18  hiking.  Motorized vehicles, except snowmobiles, are prohibited 
 53.19  from the trail. 
 53.20     Sec. 23.  Minnesota Statutes 1998, section 85.34, 
 53.21  subdivision 1, is amended to read: 
 53.22     Subdivision 1.  The commissioner of natural resources with 
 53.23  the approval of the Executive Council may lease for purposes of 
 53.24  restoration, preservation, historical, recreational, 
 53.25  educational, and commercial use and development, that portion of 
 53.26  Fort Snelling state park known as the upper bluff consisting of 
 53.27  officer's row and, area J, the polo grounds, the adjacent golf 
 53.28  course, and residential, storage and service all buildings and 
 53.29  improvements located thereon, all lying within an area bounded 
 53.30  by Minneapolis-St. Paul International Airport, trunk highway 
 53.31  highways numbered 5 and 55, Taylor avenue, Minnehaha avenue, and 
 53.32  Bloomington Road.  The lease or leases shall be in a form 
 53.33  approved by the attorney general and for a term of not to exceed 
 53.34  99 years.  The lease or leases may provide for the provision of 
 53.35  capital improvements or other performance by the tenant or 
 53.36  tenants in lieu of all or some of the payments of rent that 
 54.1   would otherwise be required. 
 54.2      Sec. 24.  Minnesota Statutes 1998, section 85.34, is 
 54.3   amended by adding a subdivision to read: 
 54.4      Subd. 4.  All receipts derived from the leasing or 
 54.5   operation of the property described in subdivision 1 shall be 
 54.6   deposited in the state treasury and be credited to the state 
 54.7   parks working capital account designated in section 85.22, 
 54.8   subdivision 1.  Receipts and expenses from the leasing or 
 54.9   operation of the property described in subdivision 1 shall be 
 54.10  tracked separately within the account.  Money in the account 
 54.11  derived from the leasing or operation of the property described 
 54.12  in subdivision 1 is annually appropriated for the payment of 
 54.13  expenses attributable to the leasing and operation of the 
 54.14  property described in subdivision 1, included but not limited to 
 54.15  the maintenance, repair, and rehabilitation of historic 
 54.16  buildings and landscapes.  Any excess receipts in this account 
 54.17  are annually appropriated for historic preservation purposes 
 54.18  within state parks. 
 54.19     Sec. 25.  Minnesota Statutes 1998, section 85.34, is 
 54.20  amended by adding a subdivision to read: 
 54.21     Subd. 5.  The commissioner of natural resources may provide 
 54.22  an exception, in whole or in part, to the rules for use of state 
 54.23  parks and other recreational areas for property leased pursuant 
 54.24  to subdivision 1.  The exception may be provided by 
 54.25  commissioner's order and shall be effective for the term of the 
 54.26  lease or such lesser period of time specified by the 
 54.27  commissioner. 
 54.28     Sec. 26.  Minnesota Statutes 1998, section 97A.055, 
 54.29  subdivision 2, is amended to read: 
 54.30     Subd. 2.  [RECEIPTS.] The state treasurer shall credit to 
 54.31  the game and fish fund all money received under the game and 
 54.32  fish laws including receipts from:  
 54.33     (1) licenses issued; 
 54.34     (2) fines and forfeited bail; 
 54.35     (3) sales of contraband, wild animals, and other property 
 54.36  under the control of the division; 
 55.1      (4) fees from advanced education courses for hunters and 
 55.2   trappers; 
 55.3      (5) reimbursements of expenditures by the division; and 
 55.4      (6) contributions to the division; and 
 55.5      (7) revenue credited to the game and fish fund under 
 55.6   section 297A.44, subdivision 1, paragraph (e), clause (1). 
 55.7      Sec. 27.  Minnesota Statutes 1998, section 103E.011, is 
 55.8   amended by adding a subdivision to read: 
 55.9      Subd. 5.  [USE OF EXTERNAL SOURCES OF 
 55.10  FUNDING.] Notwithstanding other provisions of this chapter, a 
 55.11  drainage authority may accept and use funds from sources other 
 55.12  than, or in addition to, those derived from assessments based on 
 55.13  the benefits of the drainage system for the purposes of wetland 
 55.14  preservation or restoration or creation of water quality 
 55.15  improvements or flood control.  The sources of funding 
 55.16  authorized under this subdivision may also be used outside the 
 55.17  benefited area but must be within the watershed of the drainage 
 55.18  system. 
 55.19     Sec. 28.  Minnesota Statutes 1999 Supplement, section 
 55.20  116.073, subdivision 1, is amended to read: 
 55.21     Subdivision 1.  [AUTHORITY TO ISSUE.] (a) Pollution control 
 55.22  agency staff designated by the commissioner and department of 
 55.23  natural resources conservation officers may issue citations to a 
 55.24  person who: 
 55.25     (1) disposes of solid waste as defined in section 116.06, 
 55.26  subdivision 22, at a location not authorized by law for the 
 55.27  disposal of solid waste without permission of the owner of the 
 55.28  property; 
 55.29     (2) fails to report or recover oil or hazardous substance 
 55.30  discharges as required under section 115.061; or 
 55.31     (3) fails to take discharge preventive or preparedness 
 55.32  measures required under chapter 115E.  
 55.33     (b) In addition, pollution control agency staff designated 
 55.34  by the commissioner may issue citations to owners and operators 
 55.35  of facilities dispensing petroleum products who violate sections 
 55.36  116.46 to 116.50 and Minnesota Rules, chapters 7150 and 7151 and 
 56.1   parts 7001.4200 to 7001.4300.  The citations for violation of 
 56.2   sections 116.46 to 116.50 and Minnesota Rules, chapter 7150, may 
 56.3   be issued only after the owners and operators have had a 90-day 
 56.4   period to correct all the violations stated in a letter issued 
 56.5   previously by pollution control agency staff.  A citation issued 
 56.6   under this subdivision must include a requirement that the 
 56.7   person cited remove and properly dispose of or otherwise manage 
 56.8   the waste or discharged oil or hazardous substance, reimburse 
 56.9   any government agency that has disposed of the waste or 
 56.10  discharged oil or hazardous substance and contaminated debris 
 56.11  for the reasonable costs of disposal, or correct any underground 
 56.12  storage tank violations. 
 56.13     (c) Until June 1, 2004, citations for violation of sections 
 56.14  115E.045 and 116.46 to 116.50 and Minnesota Rules, chapters 7150 
 56.15  and 7151, may be issued only after the owners and operators have 
 56.16  had a 90-day period to correct violations stated in writing by 
 56.17  pollution control agency staff, unless there is a discharge 
 56.18  associated with the violation or the violation is of Minnesota 
 56.19  Rules, part 7151.6400, subpart 1, item B, or 7151.6500. 
 56.20     Sec. 29.  Minnesota Statutes 1998, section 297A.44, 
 56.21  subdivision 1, is amended to read: 
 56.22     Subdivision 1.  (a) Except as provided in paragraphs (b) to 
 56.23  (d) (f), all revenues, including interest and penalties, derived 
 56.24  from the excise and use taxes imposed by sections 297A.01 to 
 56.25  297A.44 shall be deposited by the commissioner in the state 
 56.26  treasury and credited to the general fund.  
 56.27     (b) All excise and use taxes derived from sales and use of 
 56.28  property and services purchased for the construction and 
 56.29  operation of an agricultural resource project, from and after 
 56.30  the date on which a conditional commitment for a loan guaranty 
 56.31  for the project is made pursuant to section 41A.04, subdivision 
 56.32  3, shall be deposited in the Minnesota agricultural and economic 
 56.33  account in the special revenue fund.  The commissioner of 
 56.34  finance shall certify to the commissioner the date on which the 
 56.35  project received the conditional commitment.  The amount 
 56.36  deposited in the loan guaranty account shall be reduced by any 
 57.1   refunds and by the costs incurred by the department of revenue 
 57.2   to administer and enforce the assessment and collection of the 
 57.3   taxes. 
 57.4      (c) All revenues, including interest and penalties, derived 
 57.5   from the excise and use taxes imposed on sales and purchases 
 57.6   included in section 297A.01, subdivision 3, paragraphs (d) and 
 57.7   (k), clauses (1) and (2), must be deposited by the commissioner 
 57.8   in the state treasury, and credited as follows: 
 57.9      (1) first to the general obligation special tax bond debt 
 57.10  service account in each fiscal year the amount required by 
 57.11  section 16A.661, subdivision 3, paragraph (b); and 
 57.12     (2) after the requirements of clause (1) have been met, the 
 57.13  balance must be credited to the general fund. 
 57.14     (d) The revenues, including interest and penalties, 
 57.15  collected under section 297A.135, subdivision 5, shall be 
 57.16  deposited by the commissioner in the state treasury and credited 
 57.17  to the general fund.  By July 15 of each year the commissioner 
 57.18  shall transfer to the highway user tax distribution fund an 
 57.19  amount equal to the excess fees collected under section 
 57.20  297A.135, subdivision 5, for the previous calendar year. 
 57.21     (e) For fiscal year 2001, 97 percent, and for fiscal year 
 57.22  2002 and thereafter, 87 percent of the revenues, including 
 57.23  interest and penalties, transmitted to the commissioner under 
 57.24  section 297A.259, must be deposited by the commissioner in the 
 57.25  state treasury as follows: 
 57.26     (1) 50 percent of the receipts must be deposited in the 
 57.27  heritage enhancement account in the game and fish fund, and may 
 57.28  be spent only on activities that improve, enhance, or protect 
 57.29  fish and wildlife resources, including conservation, 
 57.30  restoration, and enhancement of land, water, and other natural 
 57.31  resources of the state; 
 57.32     (2) 22.5 percent of the receipts must be deposited in the 
 57.33  natural resources fund, and may be spent only for state parks 
 57.34  and trails; 
 57.35     (3) 22.5 percent of the receipts must be deposited in the 
 57.36  natural resources fund, and may be spent only on metropolitan 
 58.1   park and trail grants; 
 58.2      (4) three percent of the receipts must be deposited in the 
 58.3   natural resources fund, and may be spent only on local trail 
 58.4   grants; and 
 58.5      (5) two percent of the receipts must be deposited in the 
 58.6   natural resources fund, and may be spent only for the Minnesota 
 58.7   zoological garden, the Como park zoo and conservatory, and the 
 58.8   Duluth zoo. 
 58.9      (f) The revenue dedicated under paragraph (e) may not be 
 58.10  used as a substitute for traditional sources of funding for the 
 58.11  purposes specified, but the dedicated revenue shall supplement 
 58.12  traditional sources of funding for those purposes.  Land 
 58.13  acquired with money deposited in the game and fish fund under 
 58.14  paragraph (e) must be open to public hunting and fishing during 
 58.15  the open season.  At least 87 percent of the money deposited in 
 58.16  the game and fish fund for improvement, enhancement, or 
 58.17  protection of fish and wildlife resources under paragraph (e) 
 58.18  must be allocated for field operations. 
 58.19     Sec. 30.  Minnesota Statutes 1998, section 383B.235, is 
 58.20  amended by adding a subdivision to read: 
 58.21     Subd. 3.  [EXISTING FACILITY MAY USE 
 58.22  CAPACITY.] Notwithstanding subdivisions 1 and 2, an existing 
 58.23  resource recovery facility may reclaim, burn, use, process, or 
 58.24  dispose of mixed municipal solid waste to the full extent of its 
 58.25  maximum yearly capacity as of January 1, 2000.  The facility 
 58.26  must continue to comply with all federal and state environmental 
 58.27  laws and regulations and must obtain a conditional use permit 
 58.28  from the municipality where the facility is located. 
 58.29     Sec. 31.  Laws 1998, chapter 389, article 16, section 31, 
 58.30  subdivision 2, as amended by Laws 1999, chapter 180, section 1, 
 58.31  is amended to read: 
 58.32     Subd. 2.  [EXCHANGE OF COUNTY LAKESHORE LAND FOR LEASED 
 58.33  LAKESHORE LOTS.] (a) For the purposes of this section: 
 58.34     (1) "county land" includes, but is not limited to, 
 58.35  tax-forfeited land administered by any county; 
 58.36     (2) "leased lakeshore lots" means lands leased by the 
 59.1   state, including lots for which leases have been canceled, 
 59.2   pursuant to Minnesota Statutes, section 92.46, subdivision 1; 
 59.3   and 
 59.4      (3) "plan for exchange" means a listing of parcels proposed 
 59.5   for exchange with legal descriptions, county estimates of 
 59.6   values, and maps and acreage for each parcel.  By July 1, 1999, 
 59.7   counties shall include exchange plans for all lakeshore lease 
 59.8   lots that are in substantial compliance with official controls.  
 59.9   The plan shall also include a timeline that provides for the 
 59.10  completion of the exchange of all remaining lakeshore lease lots 
 59.11  by December 31, 2000.  
 59.12     (b) By July 1, 1999, a county board with leased lakeshore 
 59.13  lots must petition the land exchange board with a plan for an 
 59.14  exchange of county land for leased lakeshore lots in the county 
 59.15  that are not listed by the commissioner pursuant to subdivision 
 59.16  1.  Notwithstanding Minnesota Statutes, section 94.342, the land 
 59.17  proposed for the exchange must be land bordering on or adjacent 
 59.18  to meandered or other public waters.  A county board proposing 
 59.19  an exchange under this section may include tax-forfeited land 
 59.20  administered by another county in the proposal with the consent 
 59.21  of that county board.  
 59.22     (c) In determining the value of the leased lakeshore lots 
 59.23  for purposes of the exchange, the land exchange board must 
 59.24  review an appraisal of each lot prepared by an appraiser 
 59.25  licensed by the commissioner of commerce.  The selection of the 
 59.26  appraiser must be agreed to by the commissioner of natural 
 59.27  resources and the county board of the county containing the 
 59.28  leased lakeshore lot.  The commissioner of natural resources 
 59.29  must pay the costs of appraisal and may recover these costs as 
 59.30  provided in this section.  The commissioner must submit 
 59.31  appraisals under this paragraph to the land exchange board by 
 59.32  June 1, 1999.  
 59.33     (d) The land exchange board must determine whether the land 
 59.34  offered for exchange by a county under this section is lakeshore 
 59.35  of substantially equal value to the leased lakeshore lots 
 59.36  included in the county's petition.  In making this 
 60.1   determination, the land exchange board must review an appraisal 
 60.2   of the land offered for exchange prepared by an appraiser 
 60.3   licensed by the commissioner of commerce.  The selection of the 
 60.4   appraiser must be agreed to by the commissioner of natural 
 60.5   resources and the county board of the county containing the 
 60.6   leased lakeshore lots.  The county must pay the costs of this 
 60.7   appraisal and may recover those costs as provided in this 
 60.8   section.  
 60.9      (e) Before the proposed exchange may be submitted to the 
 60.10  land exchange board, the commissioner of natural resources must 
 60.11  ensure that, whenever possible, state lands are added to the 
 60.12  leased lakeshore lots when necessary to provide conformance with 
 60.13  zoning official controls.  The lands added to the leased 
 60.14  lakeshore lots must be included in the appraised value of the 
 60.15  lots.  If the commissioner is unable to add the necessary land 
 60.16  to a lot, the lot shall be treated as if purchased at the time 
 60.17  the state first leased the site, for the purposes of local 
 60.18  zoning and other ordinances at the time of sale of the lot by 
 60.19  the county.  
 60.20     (f) Additional state or county lands, including state 
 60.21  riparian land leased for a commercial use, may be added to the 
 60.22  exchanges if mutually agreed upon by the commissioner and the 
 60.23  affected county board to meet county zoning standards or other 
 60.24  regulatory needs for the lots, for use of the land by the county 
 60.25  or state, or to avoid leaving unmanageable parcels of land in 
 60.26  state or county ownership after an exchange, or to dispose of 
 60.27  state commercial riparian leases.  The additional county land 
 60.28  may include nonriparian land, if the land is adjacent to county 
 60.29  land exchanged under this section and is beneficial to or 
 60.30  enhances the value of the school trust land.  Notwithstanding 
 60.31  Minnesota Statutes, chapter 282, or any other law to the 
 60.32  contrary, a county board may sell all or part of any additional 
 60.33  land to an owner of a lakeshore lot sold by the county under 
 60.34  this section, or sold by the state at a lakeshore lot sale, or 
 60.35  to the lessee of a commercial lease.  
 60.36     (g) In the event that commercial leased state land is 
 61.1   proposed for exchange, the state and county must submit to the 
 61.2   land exchange board prior to exchanges, without regard to the 
 61.3   dates provided in this section, the reports, appraisals, and 
 61.4   plan for exchange required by this section.  The county is not 
 61.5   required to sell the commercially leased lands it receives from 
 61.6   the state within the times stated in this section. 
 61.7      (h) The land exchange board must determine whether the lots 
 61.8   are of substantially equal value and may approve the exchange, 
 61.9   notwithstanding the requirements of Minnesota Statutes, sections 
 61.10  94.342 to 94.347, relating to the approval process.  If the 
 61.11  board approves the exchange, the commissioner must exchange the 
 61.12  leased lakeshore lots for the county lands, together with any 
 61.13  additional state land provided for under this section, subject 
 61.14  to the requirements of the Minnesota Constitution, article XI, 
 61.15  section 10, relating to the reservation of mineral and water 
 61.16  power rights.  
 61.17     (i) The deeds between the state and counties for land 
 61.18  exchanges under this section are exempt from the deed tax 
 61.19  imposed by Minnesota Statutes, section 287.21. 
 61.20     (j) The deeds issued by the state and counties for the land 
 61.21  exchanges and sales to a lessee made pursuant to this section 
 61.22  are exempt from the requirements imposed for well disclosure by 
 61.23  Minnesota Statutes, section 103I.235, well sealing by Minnesota 
 61.24  Statutes, section 103I.311, and individual sewage treatment 
 61.25  system disclosure by Minnesota Statutes, section 115.55, 
 61.26  subdivision 6. 
 61.27     Sec. 32.  Laws 1998, chapter 404, section 7, subdivision 
 61.28  23, as amended by Laws 1999, chapter 231, section 194, and Laws 
 61.29  1999, chapter 240, article 1, section 20, is amended to read: 
 61.30   Subd. 23.  Metro Regional Trails          5,000,000
 61.31  For grants to the metropolitan council 
 61.32  for acquisition and development of a 
 61.33  capital nature of trail connections in 
 61.34  the metropolitan area as specified in 
 61.35  this subdivision.  The purpose of the 
 61.36  grants is to improve trails in the 
 61.37  metropolitan park and open space system 
 61.38  and connect them with existing state 
 61.39  and regional trails.  Priority shall be 
 61.40  given to matching funds for an ISTEA 
 61.41  grant. 
 62.1   The funds shall be allocated by the 
 62.2   council as follows: 
 62.3   (1) $1,050,000 is allocated to Ramsey 
 62.4   county as follows: 
 62.5   (i) $400,000 to complete six miles of 
 62.6   trails between the Burlington Northern 
 62.7   Regional Trail and Bald Eagle-Otter 
 62.8   Lake Regional Park; 
 62.9   (ii) $150,000 to complete a one-mile 
 62.10  connection between Birch Lake and the 
 62.11  Lake Tamarack segment of Bald 
 62.12  Eagle-Otter Lake Regional Park; 
 62.13  (iii) $500,000 to acquire real property 
 62.14  and design and construct or renovate 
 62.15  recreation facilities along the 
 62.16  Mississippi River in cooperation with 
 62.17  the city of St. Paul; 
 62.18  (2) $1,050,000 is allocated to the city 
 62.19  of St. Paul as follows: 
 62.20  (i) $250,000 to construct a bridge over 
 62.21  Lexington Parkway in Como Regional 
 62.22  Park; and 
 62.23  (ii) $800,000 to enhance amenities for 
 62.24  the trailhead at the Lilydale-Harriet 
 62.25  Island Regional Park pavilion; 
 62.26  (3) $1,400,000 is allocated to Anoka 
 62.27  county to construct: 
 62.28  (i) a pedestrian tunnel under Highway 
 62.29  65 on the Rice Creek West Regional 
 62.30  Trail in the city of Fridley; and 
 62.31  (ii) restrooms, trailhead, signs, and 
 62.32  amenities at the trailhead to the Rice 
 62.33  Creek West Regional Trail; and 
 62.34  (iii) a pedestrian bridge on the 
 62.35  Mississippi River Regional Trail 
 62.36  crossing over Mississippi Street in the 
 62.37  city of Fridley; and 
 62.38  (4) $1,500,000 is allocated to the 
 62.39  suburban Hennepin regional park 
 62.40  district as follows: 
 62.41  (i) $1,000,000 to connect North 
 62.42  Hennepin Regional Trail to Luce Line 
 62.43  State Trail and Medicine Lake; and 
 62.44  (ii) $500,000 is for the cost of 
 62.45  development and acquisition of the 
 62.46  Southwest regional trail in the city of 
 62.47  St. Louis Park.  The trail must connect 
 62.48  the Minneapolis regional trail system 
 62.49  at Cedar Lake park to the Hennepin 
 62.50  parks regional trail system at the 
 62.51  Hopkins trail head. 
 62.52     Sec. 33.  Laws 1999, chapter 231, section 2, subdivision 2, 
 62.53  is amended to read: 
 62.54  Subd. 2.  Protection of the Water 
 63.1       15,984,000     16,008,000
 63.2                 Summary by Fund
 63.3   General              13,074,000    13,283,000 12,983,000
 63.4   State Government
 63.5   Special Revenue          44,000        45,000
 63.6   Environmental         2,616,000     2,680,000  2,980,000
 63.7   Petroleum tank          250,000        -0-
 63.8   $2,348,000 the first year and 
 63.9   $2,348,000 the second year are for 
 63.10  grants to local units of government for 
 63.11  the clean water partnership program.  
 63.12  The amount of this appropriation above 
 63.13  the base is for Phase II implementation 
 63.14  projects.  Any unencumbered balance 
 63.15  remaining in the first year does not 
 63.16  cancel and is available for the second 
 63.17  year of the biennium. 
 63.18  $1,470,000 the first year and 
 63.19  $1,841,000 the second year are for 
 63.20  grants for county administration of the 
 63.21  feedlot permit program.  These amounts 
 63.22  are transferred to the board of water 
 63.23  and soil resources for disbursement in 
 63.24  accordance with Minnesota Statutes, 
 63.25  section 103B.3369, in cooperation with 
 63.26  the pollution control agency.  Grants 
 63.27  must be matched with a combination of 
 63.28  local cash and/or in-kind 
 63.29  contributions.  Counties receiving 
 63.30  these grants shall submit an annual 
 63.31  report to the pollution control agency 
 63.32  regarding activities conducted under 
 63.33  the grant, expenditures made, and local 
 63.34  match contributions.  First priority 
 63.35  for funding shall be given to counties 
 63.36  that have requested and received 
 63.37  delegation from the pollution control 
 63.38  agency for processing of animal feedlot 
 63.39  permit applications under Minnesota 
 63.40  Statutes, section 116.07, subdivision 
 63.41  7.  Delegated counties shall be 
 63.42  eligible to receive a grant of either:  
 63.43  $50 multiplied by the number of 
 63.44  livestock or poultry farms with sales 
 63.45  greater than $10,000, as reported in 
 63.46  the 1997 Census of Agriculture, 
 63.47  published by the United States Bureau 
 63.48  of Census; or $80 multiplied by the 
 63.49  number of feedlots with greater than 
 63.50  ten animal units as determined by a 
 63.51  level 2 or level 3 feedlot inventory 
 63.52  conducted in accordance with the 
 63.53  Feedlot Inventory Guidebook published 
 63.54  by the board of water and soil 
 63.55  resources, dated June 1991.  To receive 
 63.56  the additional funding that is based on 
 63.57  the county feedlot inventory, the 
 63.58  county shall submit a copy of the 
 63.59  inventory to the pollution control 
 63.60  agency.  Any remaining money is for 
 63.61  distribution to all counties on a 
 63.62  competitive basis through the challenge 
 63.63  grant process for the conducting of 
 63.64  feedlot inventories, development of 
 64.1   delegated county feedlot programs, and 
 64.2   for information and education or 
 64.3   technical assistance efforts to reduce 
 64.4   feedlot-related pollution hazards.  Any 
 64.5   money remaining after the first year is 
 64.6   available for the second year. 
 64.7   $94,000 the first year and $97,000 the 
 64.8   second year are for compliance 
 64.9   activities and air quality monitoring 
 64.10  to address hydrogen sulfide emissions 
 64.11  from animal feedlots.  The air quality 
 64.12  monitoring must include the use of 
 64.13  portable survey instruments. 
 64.14  $1,043,000 the first year and 
 64.15  $1,048,000 the second year are for 
 64.16  water monitoring activities.  
 64.17  $320,000 the first year and $322,000 
 64.18  the second year are for community 
 64.19  technical assistance and education, 
 64.20  including grants and technical 
 64.21  assistance to communities for local and 
 64.22  basin-wide water quality protection. 
 64.23  $201,000 the first year and $202,000 
 64.24  the second year are for individual 
 64.25  sewage treatment system (ISTS) 
 64.26  administration. Of this amount, $86,000 
 64.27  in each year is transferred to the 
 64.28  board of water and soil resources for 
 64.29  assistance to local units of government 
 64.30  through competitive grant programs for 
 64.31  ISTS program development. 
 64.32  $200,000 in each year is for individual 
 64.33  sewage treatment system grants.  Any 
 64.34  unexpended balance in the first year 
 64.35  does not cancel, but is available in 
 64.36  the second year. 
 64.37  $250,000 the first year and $500,000 
 64.38  the second year are for studies to 
 64.39  determine total maximum daily load 
 64.40  allocations to improve water quality.  
 64.41  $300,000 each the first year is from 
 64.42  the general fund and $300,000 the 
 64.43  second year from the environmental fund 
 64.44  are for continuing research on 
 64.45  malformed frogs.  This is a one-time 
 64.46  appropriation.  
 64.47  $126,000 is for administration of the 
 64.48  wastewater infrastructure fund (WIF) 
 64.49  construction program.  This is a 
 64.50  one-time appropriation.  
 64.51  $250,000 the first year, 
 64.52  notwithstanding Minnesota Statutes, 
 64.53  section 115C.08, subdivision 4, is from 
 64.54  the petroleum tank release fund for the 
 64.55  following purposes:  (1) to purchase 
 64.56  and distribute emergency spill response 
 64.57  equipment, such as spill containment 
 64.58  booms, sorbent pads, and installation 
 64.59  tools, along the Mississippi river 
 64.60  upstream of drinking water intakes at 
 64.61  the locations designated by the agency 
 64.62  in consultation with the Mississippi 
 65.1   River Defense Network; (2) to purchase 
 65.2   mobile trailers to contain the 
 65.3   equipment in clause (1) so that rapid 
 65.4   deployment can occur; and (3) to 
 65.5   conduct spill response training for 
 65.6   those groups of responders receiving 
 65.7   the spill response equipment described 
 65.8   in clause (1).  The agency shall 
 65.9   develop and administer protocol for the 
 65.10  use of the equipment among all 
 65.11  potential users, including private 
 65.12  contract firms, public response 
 65.13  agencies, and units of government.  Any 
 65.14  money remaining after the first year is 
 65.15  available for the second year.  This is 
 65.16  a one-time appropriation. 
 65.17  $100,000 for the biennium is for a 
 65.18  grant to the city of Garrison for the 
 65.19  Garrison, Kathio, West Mille Lacs Lake 
 65.20  Sanitary District for the cost of 
 65.21  environmental studies, planning, and 
 65.22  legal assistance for sewage treatment 
 65.23  purposes.  This is a one-time 
 65.24  appropriation. 
 65.25  Until July 1, 2001, the agency shall 
 65.26  not approve additional fees on animal 
 65.27  feedlot operations. 
 65.28     Sec. 34.  Laws 1999, chapter 231, section 6, as amended by 
 65.29  Laws 1999, chapter 249, section 10, is amended to read: 
 65.30  Sec. 6.  BOARD OF WATER AND 
 65.31  SOIL RESOURCES                        18,896,000     18,228,000
 65.32  $5,480,000 the first year and 
 65.33  $5,480,000 the second year are for 
 65.34  natural resources block grants to local 
 65.35  governments.  Of this amount, $50,000 
 65.36  each year is for a grant to the North 
 65.37  Shore Management Board, $35,000 each 
 65.38  year is for a grant to the St. Louis 
 65.39  River Board, $100,000 each year is for 
 65.40  a grant to the Minnesota River Basin 
 65.41  Joint Powers Board, and $27,000 each 
 65.42  year is for a grant to the Southeast 
 65.43  Minnesota Resources Board. 
 65.44  The board shall reduce the amount of 
 65.45  the natural resource block grant to a 
 65.46  county by an amount equal to any 
 65.47  reduction in the county's general 
 65.48  services allocation to a soil and water 
 65.49  conservation district from the county's 
 65.50  1998 allocation. 
 65.51  Grants must be matched with a 
 65.52  combination of local cash or in-kind 
 65.53  contributions.  The base grant portion 
 65.54  related to water planning must be 
 65.55  matched by an amount that would be 
 65.56  raised by a levy under Minnesota 
 65.57  Statutes, section 103B.3369.  
 65.58  $3,867,000 the first year and 
 65.59  $3,867,000 the second year are for 
 65.60  grants to soil and water conservation 
 65.61  districts for general purposes, 
 65.62  nonpoint engineering, and for 
 66.1   implementation of the RIM conservation 
 66.2   reserve program.  Upon approval of the 
 66.3   board, expenditures may be made from 
 66.4   these appropriations for supplies and 
 66.5   services benefiting soil and water 
 66.6   conservation districts. 
 66.7   $4,120,000 the first year and 
 66.8   $4,120,000 the second year are for 
 66.9   grants to soil and water conservation 
 66.10  districts for cost-sharing contracts 
 66.11  for erosion control and water quality 
 66.12  management.  Of this amount, $32,000 
 66.13  the first year is and up to $90,000 the 
 66.14  second year are for a grant grants to 
 66.15  the Blue Earth county soil and water 
 66.16  conservation districts for stream bank 
 66.17  stabilization on the LeSueur river 
 66.18  within the city limits of St. Clair; 
 66.19  and at least $1,500,000 the first year 
 66.20  and $1,500,000 the second year are for 
 66.21  state cost-share grants for 
 66.22  cost-sharing contracts for water 
 66.23  quality management on feedlots.  
 66.24  Priority must be given to feedlot 
 66.25  operators who have received notices of 
 66.26  violation and for feedlots in counties 
 66.27  that are conducting or have completed a 
 66.28  level 2 or level 3 feedlot inventory.  
 66.29  This appropriation is available until 
 66.30  expended.  If the appropriation in 
 66.31  either year is insufficient, the 
 66.32  appropriation in the other year is 
 66.33  available for it. 
 66.34  $100,000 the first year and $100,000 
 66.35  the second year are for a grant to the 
 66.36  Red river basin board to develop a Red 
 66.37  river basin water management plan and 
 66.38  to coordinate water management 
 66.39  activities in the states and provinces 
 66.40  bordering the Red river.  This 
 66.41  appropriation is only available to the 
 66.42  extent it is matched by a proportionate 
 66.43  amount in United States currency from 
 66.44  the states of North Dakota and South 
 66.45  Dakota and the province of Manitoba.  
 66.46  The unencumbered balance in the first 
 66.47  year does not cancel but is available 
 66.48  for the second year.  This is a 
 66.49  one-time appropriation. 
 66.50  $189,000 the first year and $189,000 
 66.51  the second year are for grants to 
 66.52  watershed districts and other local 
 66.53  units of government in the southern 
 66.54  Minnesota river basin study area 2 for 
 66.55  floodplain management.  If the 
 66.56  appropriation in either year is 
 66.57  insufficient, the appropriation in the 
 66.58  other year is available for it. 
 66.59  $1,203,000 the first year and $450,000 
 66.60  the second year are for the 
 66.61  administrative costs of easement and 
 66.62  grant programs. 
 66.63  Any unencumbered balance in the board's 
 66.64  program of grants does not cancel at 
 66.65  the end of the first year and is 
 66.66  available for the second year for the 
 67.1   same grant program.  If the 
 67.2   appropriation in either year is 
 67.3   insufficient, the appropriation for the 
 67.4   other year is available for it. 
 67.5      Sec. 35.  Laws 1999, chapter 231, section 11, subdivision 
 67.6   3, is amended to read: 
 67.7   Subd. 3.  Agricultural Marketing and Development
 67.8         6,521,000      5,410,000
 67.9   Notwithstanding Minnesota Statutes, 
 67.10  section 41A.09, subdivision 3a, the 
 67.11  total payments from the ethanol 
 67.12  development account to all producers 
 67.13  may not exceed $68,447,000 $72,106,000 
 67.14  for the biennium ending June 30, 2001.  
 67.15  If, prior to the end of the biennium, 
 67.16  the total amount for which all 
 67.17  producers are eligible in a quarter 
 67.18  exceeds the amount available for 
 67.19  payments remaining in the 
 67.20  appropriation, the commissioner shall 
 67.21  make the payments for the quarter in 
 67.22  which the shortfall occurs on a pro 
 67.23  rata basis.  In fiscal year 2000, the 
 67.24  commissioner shall first reimburse 
 67.25  producers for eligible unpaid claims 
 67.26  accumulated through June 30, 1999.  
 67.27  $500,000 the first year is appropriated 
 67.28  to the rural finance authority for 
 67.29  making a loan under Minnesota Statutes, 
 67.30  section 41B.044.  Principal and 
 67.31  interest payments on the loan must be 
 67.32  deposited in the ethanol development 
 67.33  account for producer payments under 
 67.34  Minnesota Statutes, section 
 67.35  41B.09 general fund. 
 67.36  By July 15, 1999, the commissioner 
 67.37  shall transfer the unencumbered cash 
 67.38  balance in the ethanol development fund 
 67.39  established in Minnesota Statutes, 
 67.40  section 41B.044, to the general fund. 
 67.41  $200,000 the first year is for a grant 
 67.42  from the commissioner to the Minnesota 
 67.43  Turkey Growers Association for 
 67.44  assistance to an entity that constructs 
 67.45  a facility that uses poultry litter as 
 67.46  a fuel for the generation of 
 67.47  electricity.  This amount must be 
 67.48  matched by $1 of nonstate money for 
 67.49  each dollar of state money.  This is a 
 67.50  one-time appropriation. 
 67.51  $50,000 the first year is for the 
 67.52  commissioner, in consultation with the 
 67.53  commissioner of economic development, 
 67.54  to conduct a study of the need for a 
 67.55  commercial shipping port at which 
 67.56  agricultural cooperatives or individual 
 67.57  farmers would have access to port 
 67.58  facilities.  This is a one-time 
 67.59  appropriation.  
 67.60  $71,000 the first year and $71,000 the 
 67.61  second year are for transfer to the 
 68.1   Minnesota grown matching account and 
 68.2   may be used as grants for Minnesota 
 68.3   grown promotion under Minnesota 
 68.4   Statutes, section 17.109. 
 68.5   $100,000 the first year is for a grant 
 68.6   to the University of Minnesota 
 68.7   extension service for its farm safety 
 68.8   and health program.  This is a one-time 
 68.9   appropriation. 
 68.10  $225,000 the first year and $75,000 the 
 68.11  second year are for grants to the 
 68.12  Minnesota agricultural education 
 68.13  leadership council for the planning and 
 68.14  implementation of initiatives enhancing 
 68.15  and expanding agricultural education in 
 68.16  rural and urban areas of the state.  
 68.17  Funds not used in the first year are 
 68.18  available for the second year.  This is 
 68.19  a one-time appropriation.  
 68.20  $480,000 the first year and $420,000 
 68.21  the second year are to the commissioner 
 68.22  of agriculture for programs to 
 68.23  aggressively promote, develop, expand, 
 68.24  and enhance the marketing of 
 68.25  agricultural products from Minnesota 
 68.26  producers and processors.  The 
 68.27  commissioner must enter into 
 68.28  collaborative efforts with the 
 68.29  department of trade and economic 
 68.30  development, the world trade center 
 68.31  corporation, and other public or 
 68.32  private entities knowledgeable in 
 68.33  market identification and development.  
 68.34  The commissioner may also contract with 
 68.35  or make grants to public or private 
 68.36  organizations involved in efforts to 
 68.37  enhance communication between producers 
 68.38  and markets and organizations that 
 68.39  identify, develop, and promote the 
 68.40  marketing of Minnesota agricultural 
 68.41  crops, livestock, and produce in local, 
 68.42  regional, national, and international 
 68.43  marketplaces.  Grants may be provided 
 68.44  to appropriate organizations including 
 68.45  those functioning as marketing clubs, 
 68.46  to a cooperative known as Minnesota 
 68.47  Marketplace, and to recognized 
 68.48  associations of producers or processors 
 68.49  of organic foods or Minnesota grown 
 68.50  specialty crops.  Beginning October 15, 
 68.51  1999, and 15 days after the close of 
 68.52  each calendar quarter thereafter, the 
 68.53  commissioner shall provide to the 
 68.54  senate and house committees with 
 68.55  jurisdiction over agriculture policy 
 68.56  and funding interim reports of the 
 68.57  progress toward accomplishing the goals 
 68.58  of this item.  The commissioner shall 
 68.59  deliver a final report on March 1, 
 68.60  2001.  If the appropriation for either 
 68.61  year is insufficient, the appropriation 
 68.62  for the other year is available.  This 
 68.63  is a one-time appropriation that 
 68.64  remains available until expended. 
 68.65  $60,000 the second year is for grants 
 68.66  to farmers for demonstration projects 
 68.67  involving sustainable agriculture.  If 
 69.1   a project cost is more than $25,000, 
 69.2   the amount above $25,000 must be 
 69.3   matched at the rate of one state dollar 
 69.4   for each dollar of nonstate money.  
 69.5   Priorities must be given for projects 
 69.6   involving multiple parties.  Up to 
 69.7   $20,000 each year may be used for 
 69.8   dissemination of information about the 
 69.9   demonstration grant projects.  If the 
 69.10  appropriation for either year is 
 69.11  insufficient, the appropriation for the 
 69.12  other is available. 
 69.13  $160,000 each year is for value-added 
 69.14  agricultural product processing and 
 69.15  marketing grants under Minnesota 
 69.16  Statutes, section 17.101, subdivision 5.
 69.17  $450,000 the first year and $300,000 
 69.18  the second year are for continued 
 69.19  research of solutions and alternatives 
 69.20  for manure management and odor 
 69.21  control.  This is a one-time 
 69.22  appropriation. 
 69.23  $50,000 the first year and $50,000 the 
 69.24  second year are for annual cost-share 
 69.25  payments to resident farmers for the 
 69.26  costs of organic certification.  The 
 69.27  annual cost-share payments per farmer 
 69.28  shall be two-thirds of the cost of the 
 69.29  certification or $200, whichever is 
 69.30  less.  A certified farmer is eligible 
 69.31  to receive annual certification 
 69.32  cost-share payments for up to five 
 69.33  years.  $15,000 each year is for 
 69.34  organic market and program 
 69.35  development.  This appropriation is 
 69.36  available until expended. 
 69.37  $30,000 the first year is to assess 
 69.38  producer production contracts under 
 69.39  section 205.  This appropriation is 
 69.40  available until June 30, 2001. 
 69.41     Sec. 36.  Laws 1999, chapter 231, section 14, is amended to 
 69.42  read: 
 69.43  Sec. 14.  AGRICULTURAL UTILIZATION
 69.44  RESEARCH INSTITUTE                    3,830,000      4,330,000
 69.45                Summary by Fund
 69.46  General               3,630,000       4,130,000
 69.47  Special Revenue Agricultural        200,000       200,000 
 69.48  The agricultural utilization research 
 69.49  institute must collaborate with the 
 69.50  commissioner of agriculture on issues 
 69.51  of market development and technology 
 69.52  transfer. 
 69.53  $200,000 the first year and $200,000 
 69.54  the second year are for hybrid tree 
 69.55  management research and development of 
 69.56  an implementation plan for establishing 
 69.57  hybrid tree plantations in the state.  
 69.58  This appropriation is available to the 
 69.59  extent matched by $2 of nonstate 
 70.1   contributions, either cash or in kind, 
 70.2   for each $1 of state money. 
 70.3      Sec. 37.  [AGRICULTURAL STORAGE TANK REMOVAL; 
 70.4   REIMBURSEMENT.] 
 70.5      Subdivision 1.  [DEFINITION.] As used in this section, 
 70.6   "agricultural storage tank" means an underground petroleum 
 70.7   storage tank with a capacity of more than 1,100 gallons that has 
 70.8   been registered with the pollution control agency by January 1, 
 70.9   2000, and is located on a farm where the contents of the tank 
 70.10  are used by the tank owner or operator predominantly for farming 
 70.11  purposes and are not commercially distributed. 
 70.12     Subd. 2.  [REIMBURSEMENT.] Notwithstanding Minnesota 
 70.13  Statutes, section 115C.09, subdivision 1, paragraph (b), clause 
 70.14  (1), and pursuant to the remaining provisions of Minnesota 
 70.15  Statutes, chapter 115C, the petroleum tank release compensation 
 70.16  board shall reimburse an owner or operator of an agricultural 
 70.17  storage tank for 90 percent of the total reimbursable cost of 
 70.18  removal project costs incurred for the tank prior to January 1, 
 70.19  2001, including, but not limited to, tank removal, closure in 
 70.20  place, backfill, resurfacing, and utility restoration costs, 
 70.21  regardless of whether a release has occurred at the site.  
 70.22  Notwithstanding Minnesota Statutes, section 115C.09, subdivision 
 70.23  3, the board may not reimburse an eligible applicant under this 
 70.24  section for more than $7,500 of costs per tank. 
 70.25     Sec. 38.  [SMALL GASOLINE STORAGE TANK REMOVAL; 
 70.26  REIMBURSEMENT.] 
 70.27     Until June 30, 2001, the petroleum tank release 
 70.28  compensation board may reimburse a tank owner from the petroleum 
 70.29  tank release cleanup fund for 95 percent of the costs identified 
 70.30  in Minnesota Statutes 1998, section 115C.09, subdivision 3f, 
 70.31  paragraph (c), if the tank owner: 
 70.32     (1) owned two locations in the state, and no locations in 
 70.33  any other state, where motor fuel was dispensed to the public 
 70.34  into motor vehicles, watercraft, or aircraft and dispensed motor 
 70.35  fuel at that location; 
 70.36     (2) operated the tanks simultaneously for six months or 
 71.1   less in 1995; and 
 71.2      (3) dispensed less than 200,000 gallons at both locations. 
 71.3      Sec. 39.  [MINNEAPOLIS LEASE.] 
 71.4      A lease to the Minneapolis park and recreation board 
 71.5   entered into prior to or after the effective date of this 
 71.6   section pursuant to Laws 1999, chapter 231, section 5, 
 71.7   subdivision 5, shall be subject to Minnesota Statutes, section 
 71.8   85.34, except as provided in this section.  The approval of the 
 71.9   executive council shall not be required for the lease or the 
 71.10  issuance of a liquor license.  Only the operating costs, as 
 71.11  defined in the lease, to be paid by the Minneapolis park and 
 71.12  recreation board to the state shall be credited to the state 
 71.13  parks working capital account.  All base rent and percentage of 
 71.14  gross sales to be paid by the Minneapolis park and recreation 
 71.15  board to the state shall be credited to the general fund.  A 
 71.16  lease of any portion of officer's row or area J may include a 
 71.17  charge to be paid by the tenant for repayment of a portion of 
 71.18  the costs incurred by the Minneapolis park and recreation board 
 71.19  for the installation of a new water line on the upper bluff.  
 71.20  The total amount to be repaid to the Minneapolis park and 
 71.21  recreation board by tenants of officer's row and area J shall 
 71.22  not exceed $450,000. 
 71.23     Sec. 40.  [DEFINITIONS.] 
 71.24     Subdivision 1.  [APPLICABILITY.] For the purposes of 
 71.25  sections 40 to 43, the terms in this section have the meanings 
 71.26  given. 
 71.27     Subd. 2.  [AGRICULTURAL LAND.] "Agricultural land" means 
 71.28  land that is: 
 71.29     (1) composed of class I, II, or III land as identified in 
 71.30  the land capability classification system of the United States 
 71.31  Department of Agriculture; or 
 71.32     (2) similar to land described under a land classification 
 71.33  system selected by the board of water and soil resources. 
 71.34     Subd. 3.  [BOARD.] "Board" means the board of water and 
 71.35  soil resources. 
 71.36     Subd. 4.  [SHORT ROTATION WOODY CROPS.] "Short rotation 
 72.1   woody crops" means hybrid poplar and other woody plants that are 
 72.2   harvested for their fiber within 15 years of planting. 
 72.3      Subd. 5.  [WINDBREAK.] "Windbreak" means a strip or belt of 
 72.4   trees, shrubs, or grass barriers designed and located to reduce 
 72.5   snow deposition on highways, improve wildlife habitat or control 
 72.6   soil erosion. 
 72.7      Sec. 41.  [ELIGIBILITY TERMS.] 
 72.8      (a) Agricultural land eligible for the board's program 
 72.9   under section 42 must not exceed 160 acres for individual 
 72.10  landowners. 
 72.11     (b) Agricultural land eligible for payment in fiscal year 
 72.12  2000 must have been in a county under presidential disaster 
 72.13  declaration in either 1998 or 1999.  In fiscal years 2001 and 
 72.14  thereafter, payment is available for eligible agricultural land 
 72.15  in any county under a presidential disaster declaration related 
 72.16  to agriculture.  
 72.17     (c) Eligible land may be set aside for payment under 
 72.18  section 42 for a period of three years. 
 72.19     (d) At least five percent of an individual's acreage set 
 72.20  aside for payments under this program must be planted with short 
 72.21  rotation woody crops or windbreaks.  Short rotation woody crops 
 72.22  and windbreaks may not be planted within one-quarter of a mile 
 72.23  of a state or federally protected prairie.  Plantings on each 
 72.24  acre may be consistent with an organic farming plan developed 
 72.25  under the supervision of an approved organic certification 
 72.26  organization and must be in compliance with a conservation plan 
 72.27  approved by the local soil and water conservation district and 
 72.28  seeded to a vegetative cover at the earliest practicable time. 
 72.29     (e) Land enrolled in the federal conservation reserve 
 72.30  program under Public Law Number 99-198, as amended, is not 
 72.31  eligible for enrollment under sections 40 to 43. 
 72.32     Sec. 42.  [PAYMENTS.] 
 72.33     To the extent appropriated money is available for this 
 72.34  purpose, annual payments for eligible land under section 41 that 
 72.35  is set aside by the board must be based on the soil rental rates 
 72.36  established under the federal conservation reserve program 
 73.1   contained in Public Law Number 99-198.  An additional annual 
 73.2   payment of $5 per acre may be paid for acreage maintenance. 
 73.3      Payments for conservation plan implementation must be 
 73.4   consistent with Minnesota Statutes, section 103C.501. 
 73.5      Sec. 43.  [ADMINISTRATION.] 
 73.6      The land payment program in sections 41 and 42 must be 
 73.7   administered by soil and water conservation districts under 
 73.8   guidelines and grants by the board. 
 73.9      Sec. 44.  [REPEALER.] 
 73.10     Section 20 of H.F. No. 3046 of the 2000 regular session, if 
 73.11  enacted, is repealed. 
 73.12     Sec. 45.  [EFFECTIVE DATE.] 
 73.13     Section 10 is effective the day following final enactment 
 73.14  and applies to claims for corrective action costs incurred after 
 73.15  that date.  Sections 11 and 35 are effective retroactive to July 
 73.16  1, 1999.  The remainder of this article is effective the day 
 73.17  following final enactment. 
 73.18                             ARTICLE 4 
 73.19                           APPROPRIATIONS 
 73.20  Section 1.  [CRIMINAL JUSTICE APPROPRIATIONS.] 
 73.21     The sums shown in the columns marked "APPROPRIATIONS" are 
 73.22  appropriated from the general fund, or another fund named, to 
 73.23  the agencies and for the purposes specified in this article, to 
 73.24  be available for the fiscal years indicated for each purpose.  
 73.25  The figures "2000" and "2001" where used in this article, mean 
 73.26  that the appropriation or appropriations listed under them are 
 73.27  available for the year ending June 30, 2000, or June 30, 2001, 
 73.28  respectively. 
 73.29                                             APPROPRIATIONS 
 73.30                                         Available for the Year 
 73.31                                             Ending June 30 
 73.32                                            2000         2001 
 73.33  Sec. 2.  SUPREME COURT                   -0-              4,000
 73.34  $4,000 is a one-time appropriation to 
 73.35  conduct a one-half day judicial seminar 
 73.36  on parenting plans. 
 73.37  Sec. 3.  COURT OF APPEALS                -0-            200,000
 73.38  $200,000 is to restore legal/judicial 
 73.39  support services. 
 74.1   Sec. 4.  DISTRICT COURT                  -0-          2,879,000
 74.2   $2,670,000 is to reduce judge unit 
 74.3   vacancies and restore judicial branch 
 74.4   infrastructure funding.  The salaries 
 74.5   for judges that may be paid from this 
 74.6   appropriation are only those approved 
 74.7   by Laws 1997, Second Special Session 
 74.8   chapter 3, section 16. 
 74.9   $130,000 is a one-time appropriation to 
 74.10  continue the community court in the 
 74.11  second judicial district. 
 74.12  $79,000 is a one-time appropriation for 
 74.13  extraordinary prosecution costs in 
 74.14  Carlton county. 
 74.15  Sec. 5.  PUBLIC SAFETY
 74.16  Subdivision 1.  Total 
 74.17  Appropriation                         3,813,000       2,711,000
 74.18                Summary by Fund
 74.19  General               3,813,000       825,000
 74.20  Special Revenue          -0-        1,886,000
 74.21  The amounts that may be spent from this 
 74.22  appropriation for each program are 
 74.23  specified in the following subdivisions.
 74.24  Subd. 2.  Driver and Vehicle
 74.25  Services
 74.26          -0-              20,000
 74.27  $20,000 is a one-time appropriation for 
 74.28  costs related to the recodification of 
 74.29  the driving while impaired laws, if 
 74.30  S.F. No. 2677 is enacted. 
 74.31  Subd. 3.  Emergency Management 
 74.32        3,813,000         -0-  
 74.33  $3,813,000 is for the state match of 
 74.34  federal disaster assistance money under 
 74.35  Minnesota Statutes, section 12.221.  
 74.36  This appropriation is available to fund 
 74.37  state obligations incurred through the 
 74.38  receipt of federal disaster assistance 
 74.39  grants and is added to the 
 74.40  appropriation in Laws 1999, chapter 
 74.41  216, article 1, section 7, subdivision 
 74.42  2. 
 74.43  Subd. 4.  Criminal Apprehension 
 74.44          -0-           225,000
 74.45  $200,000 is a one-time appropriation 
 74.46  for overtime costs. 
 74.47  $25,000 is a one-time appropriation to 
 74.48  develop and conduct the court security 
 74.49  training program described in article 
 74.50  5, section 10. 
 74.51  Subd. 5.  Law Enforcement and  
 75.1   Community Grants 
 75.2                 Summary by Fund
 75.3   General                 -0-           430,000
 75.4   Special Revenue         -0-         1,886,000
 75.5   $150,000 is a one-time appropriation 
 75.6   for juvenile prostitution law 
 75.7   enforcement and officer training grants 
 75.8   under Minnesota Statutes, section 
 75.9   299A.71. 
 75.10  $250,000 is a one-time appropriation 
 75.11  for a grant to the Ramsey county 
 75.12  attorney's office to establish and fund 
 75.13  the joint domestic abuse prosecution 
 75.14  unit described in article 6, section 10.
 75.15  $30,000 is a one-time appropriation for 
 75.16  grants under Minnesota Statutes, 
 75.17  section 299A.62, to local law 
 75.18  enforcement agencies or regional jails 
 75.19  for the purchase of dogs trained to 
 75.20  detect or locate controlled substances 
 75.21  by scent.  Grants are limited to one 
 75.22  dog per agency.  Local law enforcement 
 75.23  agencies that previously received a 
 75.24  grant under Laws 1999, chapter 216, 
 75.25  article 1, section 7, subdivision 6, 
 75.26  are ineligible for a grant. 
 75.27  $1,886,000 is for the automobile theft 
 75.28  prevention program described in 
 75.29  Minnesota Statutes, section 299A.75.  
 75.30  This is a one-time appropriation from 
 75.31  the automobile theft prevention account 
 75.32  in the special revenue fund.  The 
 75.33  commissioner may not spend any money 
 75.34  the commissioner receives from 
 75.35  surcharges in fiscal year 2001, in 
 75.36  excess of this appropriation unless the 
 75.37  legislature approves of the spending. 
 75.38  Subd. 6.  Drug Policy and    
 75.39  Violence Prevention
 75.40          -0-           150,000
 75.41  $150,000 is a one-time appropriation 
 75.42  for distribution as matching funds to 
 75.43  counties participating in 
 75.44  multijurisdictional narcotics task 
 75.45  forces that receive federal Byrne grant 
 75.46  funds.  These matching funds are 
 75.47  available statewide to any county 
 75.48  currently participating in a task 
 75.49  force, any county seeking to join an 
 75.50  existing task force, and any county 
 75.51  starting its own task force.  These 
 75.52  matching funds may be used to enhance 
 75.53  enforcement of drug laws by training 
 75.54  and educating law enforcement personnel 
 75.55  and other interested members of the 
 75.56  community. 
 75.57  Sec. 6.  CENTER FOR  
 75.58  CRIME VICTIM SERVICES                     -0-         1,240,000
 75.59  $1,200,000 is a one-time appropriation 
 76.1   for per diem payments for battered 
 76.2   women shelter facilities incurred 
 76.3   during the administrative transfer of 
 76.4   responsibility for these payments from 
 76.5   the department of human services to the 
 76.6   department of public safety.  Any 
 76.7   portion of this appropriation that is 
 76.8   not expended for payments incurred 
 76.9   before July 1, 2000, may be transferred 
 76.10  to the department's fiscal year 2001 
 76.11  appropriation for the per diem 
 76.12  program.  The department of public 
 76.13  safety's liability for battered women 
 76.14  shelter per diem payments that are 
 76.15  incurred through June 30, 2000, and are 
 76.16  not paid by the department of human 
 76.17  services extends only to this 
 76.18  appropriation.  The department shall 
 76.19  process payments in the order in which 
 76.20  they are received until this 
 76.21  appropriation is completely expended.  
 76.22  No part of the department's fiscal year 
 76.23  2001 per diem program appropriation or 
 76.24  any other funding may be used for 
 76.25  program expenses incurred before July 
 76.26  1, 2000. 
 76.27  $40,000 is a one-time appropriation for 
 76.28  a grant to the center for applied 
 76.29  research and policy analysis at 
 76.30  Metropolitan state university for the 
 76.31  domestic violence shelter study 
 76.32  described in article 6, section 11. 
 76.33  Sec. 7.  CORRECTIONS                     -0-           2,250,000
 76.34  $1,750,000 is a one-time appropriation 
 76.35  for a grant or grants to counties, 
 76.36  groups of counties, or a county or 
 76.37  group of counties and a tribal 
 76.38  government, for up to 30 percent of the 
 76.39  construction cost of adult regional 
 76.40  detention facilities. 
 76.41  $500,000 is a one-time appropriation 
 76.42  for predesign of a joint headquarters 
 76.43  building for the department of 
 76.44  corrections and the department of 
 76.45  public safety. 
 76.46  The commissioner shall predesign a 
 76.47  vocational building at Minnesota 
 76.48  correctional facility-St. Cloud. 
 76.49  The fiscal year 2001 general fund 
 76.50  appropriation for juvenile residential 
 76.51  treatment grants in Laws 1999, chapter 
 76.52  216, article 1, section 13, subdivision 
 76.53  4, is reduced by $1,942,000.  This is a 
 76.54  one-time reduction. 
 76.55  Sec. 8.  AUTOMOBILE THEFT PREVENTION 
 76.56  BOARD 
 76.57  The fiscal year 2000 transfer from the 
 76.58  automobile theft prevention account in 
 76.59  the special revenue fund to the 
 76.60  commissioner of public safety in Laws 
 76.61  1999, chapter 216, article 1, section 
 76.62  18, is reduced by $100,000. 
 77.1   By June 30, 2000, the commissioner of 
 77.2   finance shall transfer the available 
 77.3   unencumbered balance from the 
 77.4   automobile theft prevention account in 
 77.5   the special revenue fund to the general 
 77.6   fund.  Minnesota Statutes, section 
 77.7   168A.40, subdivision 4, does not apply 
 77.8   to money transferred to the general 
 77.9   fund under this paragraph. 
 77.10  Sec. 9.  SENTENCING         
 77.11  GUIDELINES COMMISSION                   -0-              20,000
 77.12  $20,000 is a one-time appropriation for 
 77.13  salary increases. 
 77.14  Sec. 10.  MINNESOTA SAFETY   
 77.15  COUNCIL                                 -0-             200,000
 77.16  $200,000 is a one-time appropriation 
 77.17  for the crosswalk safety awareness 
 77.18  program described in article 6, section 
 77.19  9. 
 77.20  Sec. 11.  UNIVERSITY OF                  -0-             20,000
 77.21  MINNESOTA
 77.22  $20,000 is a one-time appropriation to 
 77.23  cover the cost of updating the parent 
 77.24  education curriculum. 
 77.25     Sec. 12.  Laws 1999, chapter 216, article 1, section 7, 
 77.26  subdivision 6, is amended to read: 
 77.27  Subd. 6.  Law Enforcement and Community Grants
 77.28      10,290,000      7,583,000 
 77.29  $1,000,000 the first year is for grants 
 77.30  to pay the costs of developing or 
 77.31  implementing a criminal justice 
 77.32  information integration plan as 
 77.33  described in Minnesota Statutes, 
 77.34  section 299C.65, subdivision 6 or 7.  
 77.35  The commissioner shall make a minimum 
 77.36  of two grants from this appropriation. 
 77.37  This is a one-time appropriation. 
 77.38  The commissioner of public safety shall 
 77.39  consider using a portion of federal 
 77.40  Byrne grant funds for costs related to 
 77.41  developing or implementing a criminal 
 77.42  justice information system integration 
 77.43  plan as described in Minnesota 
 77.44  Statutes, section 299C.65, subdivision 
 77.45  6 or 7. 
 77.46  $400,000 the first year is for a grant 
 77.47  to the city of Marshall to construct, 
 77.48  furnish, and equip a regional emergency 
 77.49  response training center.  The balance, 
 77.50  if any, does not cancel but is 
 77.51  available for the fiscal year ending 
 77.52  June 30, 2001. 
 77.53  $10,000 the first year is for the 
 77.54  commissioner of public safety to 
 77.55  reconvene the task force that developed 
 77.56  the statewide master plan for fire and 
 77.57  law enforcement training facilities 
 78.1   under Laws 1998, chapter 404, section 
 78.2   21, subdivision 3, for the purpose of 
 78.3   developing specific recommendations 
 78.4   concerning the siting, financing and 
 78.5   use of these training facilities.  The 
 78.6   commissioner's report shall include 
 78.7   detailed recommendations concerning the 
 78.8   following issues: 
 78.9   (1) the specific cities, counties, or 
 78.10  regions of the state where training 
 78.11  facilities should be located; 
 78.12  (2) the reasons why a training facility 
 78.13  should be sited in the recommended 
 78.14  location, including a description of 
 78.15  the public safety training needs in 
 78.16  that part of the state; 
 78.17  (3) the extent to which neighboring 
 78.18  cities and counties should be required 
 78.19  to collaborate in funding and operating 
 78.20  the recommended training facilities; 
 78.21  (4) an appropriate amount for a local 
 78.22  funding match (up to 50 percent) for 
 78.23  cities and counties using the training 
 78.24  facility to contribute in money or 
 78.25  other resources to build, expand, or 
 78.26  operate the facility; 
 78.27  (5) the feasibility of providing 
 78.28  training at one or more of the 
 78.29  recommended facilities for both law 
 78.30  enforcement and fire safety personnel; 
 78.31  (6) whether the regional or statewide 
 78.32  need for increased public safety 
 78.33  training resources can be met through 
 78.34  the expansion of existing training 
 78.35  facilities rather than the creation of 
 78.36  new facilities and, if so, which 
 78.37  facilities should be expanded; and 
 78.38  (7) any other issues the task force 
 78.39  deems relevant. 
 78.40  By January 15, 2000, the commissioner 
 78.41  shall submit the report to the chairs 
 78.42  and ranking minority members of the 
 78.43  house and senate committees and 
 78.44  divisions with jurisdiction over 
 78.45  capital investment issues and criminal 
 78.46  justice funding and policy. 
 78.47  $746,000 the first year and $766,000 
 78.48  the second year are for personnel and 
 78.49  administrative costs for the criminal 
 78.50  gang oversight council and strike force 
 78.51  described in Minnesota Statutes, 
 78.52  section 299A.64. 
 78.53  $1,171,000 the first year and 
 78.54  $2,412,000 are for the grants 
 78.55  authorized under Minnesota Statutes, 
 78.56  section 299A.66, subdivisions 1 and 2.  
 78.57  Of this appropriation, $1,595,000 each 
 78.58  year shall be included in the 2002-2003 
 78.59  biennial base budget. 
 78.60  By January 15, 2000, the criminal gang 
 79.1   oversight council shall submit a report 
 79.2   to the chairs and ranking minority 
 79.3   members of the senate and house 
 79.4   committees and divisions with 
 79.5   jurisdiction over criminal justice 
 79.6   funding and policy describing the 
 79.7   following: 
 79.8   (1) the types of crimes on which the 
 79.9   oversight council and strike force have 
 79.10  primarily focused their investigative 
 79.11  efforts since their inception; 
 79.12  (2) a detailed accounting of how the 
 79.13  oversight council and strike force have 
 79.14  spent all funds and donations they have 
 79.15  received since their inception, 
 79.16  including donations of goods and 
 79.17  services; 
 79.18  (3) the extent to which the activities 
 79.19  of the oversight council and strike 
 79.20  force overlap or duplicate the 
 79.21  activities of the fugitive task force 
 79.22  or the activities of any federal, 
 79.23  state, or local task forces that 
 79.24  investigate interjurisdictional 
 79.25  criminal activity; and 
 79.26  (4) the long-term goals that the 
 79.27  criminal gang oversight council and 
 79.28  strike force hope to achieve. 
 79.29  The commissioner of public safety shall 
 79.30  consider using a portion of federal 
 79.31  Byrne grant funds for criminal gang 
 79.32  prevention and intervention activities 
 79.33  to (1) help gang members separate 
 79.34  themselves, or remain separated, from 
 79.35  gangs; and (2) prevent individuals from 
 79.36  becoming affiliated with gangs. 
 79.37  $50,000 the first year is for a grant 
 79.38  to the Minnesota Safety Council to 
 79.39  continue the crosswalk safety awareness 
 79.40  campaign.  The Minnesota Safety Council 
 79.41  shall work with the department of 
 79.42  transportation to develop a long range 
 79.43  plan to continue the crosswalk safety 
 79.44  awareness campaign. 
 79.45  $500,000 the first year is for grants 
 79.46  under Minnesota Statutes, section 
 79.47  299A.62, subdivision 1. These grants 
 79.48  shall be distributed as provided in 
 79.49  Minnesota Statutes, section 299A.62, 
 79.50  subdivision 2.  This is a one-time 
 79.51  appropriation. 
 79.52  Up to $30,000 of the appropriation for 
 79.53  grants under Minnesota Statutes, 
 79.54  section 299A.62, is for grants to 
 79.55  requesting local law enforcement 
 79.56  agencies to purchase dogs trained to 
 79.57  detect or locate controlled substances 
 79.58  by scent.  Grants are limited to one 
 79.59  dog per county. 
 79.60  $50,000 the first year and $50,000 the 
 79.61  second year are for grants to the 
 79.62  northwest Hennepin human services 
 80.1   council to administer the northwest 
 80.2   community law enforcement project, to 
 80.3   be available until June 30, 2001.  This 
 80.4   is a one-time appropriation. 
 80.5   $30,000 the first year is to assist 
 80.6   volunteer ambulance services, licensed 
 80.7   under Minnesota Statutes, chapter 144E, 
 80.8   in purchasing automatic external 
 80.9   defibrillators.  Ambulance services are 
 80.10  eligible for a grant under this 
 80.11  provision if they do not already 
 80.12  possess an automatic external 
 80.13  defibrillator and if they provide a 25 
 80.14  percent match in nonstate funds.  This 
 80.15  is a one-time appropriation. 
 80.16  $50,000 the first year and $50,000 the 
 80.17  second year are for grants under 
 80.18  Minnesota Statutes, section 119A.31, 
 80.19  subdivision 1, clause (12), to 
 80.20  organizations that focus on 
 80.21  intervention and prevention of teenage 
 80.22  prostitution. 
 80.23  The commissioner of public safety shall 
 80.24  administer a program to distribute tire 
 80.25  deflators to local or state law 
 80.26  enforcement agencies selected by the 
 80.27  commissioner of public safety and to 
 80.28  distribute or otherwise make available 
 80.29  a computer-controlled driving simulator 
 80.30  to local or state law enforcement 
 80.31  agencies or POST-certified skills 
 80.32  programs selected by the commissioner 
 80.33  of public safety. 
 80.34  Before any decisions are made on which 
 80.35  law enforcement agencies will receive 
 80.36  tire deflators or the driving 
 80.37  simulator, a committee consisting of a 
 80.38  representative from the Minnesota 
 80.39  chiefs of police association, a 
 80.40  representative from the Minnesota 
 80.41  sheriffs association, a representative 
 80.42  from the state patrol, and a 
 80.43  representative from the Minnesota 
 80.44  police and peace officers association 
 80.45  shall evaluate the applications.  The 
 80.46  commissioner shall consult with the 
 80.47  committee concerning its evaluation and 
 80.48  recommendations on distribution 
 80.49  proposals prior to making a final 
 80.50  decision on distribution.  
 80.51  Law enforcement agencies that receive 
 80.52  tire deflators under this section 
 80.53  must:  (i) provide any necessary 
 80.54  training to their employees concerning 
 80.55  use of the tire deflators; (ii) compile 
 80.56  statistics on use of the tire deflators 
 80.57  and the results; (iii) provide a 
 80.58  one-to-one match in nonstate funds; and 
 80.59  (iv) report this information to the 
 80.60  commissioner as required. 
 80.61  Law enforcement agencies or 
 80.62  POST-certified skills programs that 
 80.63  receive a computer-controlled driving 
 80.64  simulator under this section must: 
 81.1   (1) provide necessary training to their 
 81.2   employees in emergency vehicle 
 81.3   operations and in the conduct of police 
 81.4   pursuits; 
 81.5   (2) provide a five-year plan for 
 81.6   maintaining the hardware necessary to 
 81.7   operate the driving simulator; 
 81.8   (3) provide a five-year plan to update 
 81.9   software necessary to operate the 
 81.10  driving simulator; 
 81.11  (4) provide a plan to make the driving 
 81.12  simulator available at a reasonable 
 81.13  cost and with reasonable availability 
 81.14  to other law enforcement agencies to 
 81.15  train their officers; and 
 81.16  (5) provide an estimate of the 
 81.17  availability of the driving simulator 
 81.18  for use by other law enforcement 
 81.19  agencies. 
 81.20  By January 15, 2001, the commissioner 
 81.21  shall report to the chairs and ranking 
 81.22  minority members of the house and 
 81.23  senate committees and divisions having 
 81.24  jurisdiction over criminal justice 
 81.25  matters on the tire deflators and the 
 81.26  driving simulator distributed under 
 81.27  this section. 
 81.28  $285,000 the first year is for a 
 81.29  one-time grant to the city of 
 81.30  Minneapolis to implement a coordinated 
 81.31  criminal justice system response to the 
 81.32  CODEFOR (Computer Optimized 
 81.33  Development-Focus on Results) law 
 81.34  enforcement strategy.  This 
 81.35  appropriation is available until 
 81.36  expended. 
 81.37  $795,000 the first year is for a 
 81.38  one-time grant to Hennepin county to 
 81.39  implement a coordinated criminal 
 81.40  justice system response to the CODEFOR 
 81.41  (Computer Optimized Development-Focus 
 81.42  on Results) law enforcement strategy.  
 81.43  This appropriation is available until 
 81.44  expended. 
 81.45  $420,000 the first year is for a 
 81.46  one-time grant to the fourth judicial 
 81.47  district public defender's office to 
 81.48  accommodate the CODEFOR (Computer 
 81.49  Optimized Development-Focus on Results) 
 81.50  law enforcement strategy.  This 
 81.51  appropriation is available until 
 81.52  expended. 
 81.53  $150,000 the first year and $150,000 
 81.54  the second year are for weed and seed 
 81.55  grants under Minnesota Statutes, 
 81.56  section 299A.63.  Money not expended 
 81.57  the first year is available for grants 
 81.58  during the second year.  This is a 
 81.59  one-time appropriation. 
 81.60  $200,000 each year is a one-time 
 81.61  appropriation for a grant to the center 
 82.1   for reducing rural violence to continue 
 82.2   the technical assistance and related 
 82.3   rural violence prevention services the 
 82.4   center offers to rural communities.  
 82.5   $500,000 the first year and $500,000 
 82.6   the second year are to operate the 
 82.7   weekend camp program at Camp Ripley 
 82.8   described in Laws 1997, chapter 239, 
 82.9   article 1, section 12, subdivision 3, 
 82.10  as amended by Laws 1998, chapter 367, 
 82.11  article 10, section 13.  The powers and 
 82.12  duties of the department of corrections 
 82.13  with respect to the weekend program are 
 82.14  transferred to the department of public 
 82.15  safety under Minnesota Statutes, 
 82.16  section 15.039.  The commissioner shall 
 82.17  attempt to expand the program to serve 
 82.18  500 juveniles per year within this 
 82.19  appropriation. 
 82.20  An additional $125,000 the first year 
 82.21  and $125,000 the second year are for 
 82.22  the weekend camp program at Camp Ripley.
 82.23  $500,000 the first year and $500,000 
 82.24  the second year are for Asian-American 
 82.25  juvenile crime intervention and 
 82.26  prevention grants under Minnesota 
 82.27  Statutes, section 256.486.  The powers 
 82.28  and duties of the department of human 
 82.29  services, with respect to that program, 
 82.30  are transferred to the department of 
 82.31  public safety under Minnesota Statutes, 
 82.32  section 15.039.  This is a one-time 
 82.33  appropriation. 
 82.34     Sec. 13.  Laws 1999, chapter 216, article 1, section 18, is 
 82.35  amended to read: 
 82.36  Sec. 18.  AUTOMOBILE THEFT PREVENTION 
 82.37  BOARD                                  2,277,000      1,886,000 
 82.38                                                            -0-
 82.39  This appropriation is from the 
 82.40  automobile theft prevention account in 
 82.41  the special revenue fund. 
 82.42  Of this appropriation, up to $400,000 
 82.43  the first year is transferred to the 
 82.44  commissioner of public safety for the 
 82.45  purchase and distribution of tire 
 82.46  deflators to local or state law 
 82.47  enforcement agencies and for the 
 82.48  purchase of a computer-controlled 
 82.49  driving simulator.  Any amount not 
 82.50  spent by the commissioner of public 
 82.51  safety for this purpose shall be 
 82.52  returned to the automobile theft 
 82.53  prevention account in the special 
 82.54  revenue fund and may be used for other 
 82.55  automobile theft prevention activities. 
 82.56  The automobile theft prevention board 
 82.57  may not spend any money it receives 
 82.58  from surcharges in the fiscal year 
 82.59  2000-2001 biennium, unless the 
 82.60  legislature approves the spending. 
 82.61  The executive director of the 
 83.1   automobile theft prevention board may 
 83.2   not sit on the automobile theft 
 83.3   prevention board. 
 83.4      Sec. 14.  Laws 1999, chapter 216, article 1, section 14, is 
 83.5   amended to read: 
 83.6   Sec. 14.  CORRECTIONS OMBUDSMAN          470,000 400,000 310,000
 83.7   If the reduction in the base level 
 83.8   funding causes a reduction in the 
 83.9   number of employees, then the 
 83.10  commissioner of corrections and 
 83.11  commissioner of public safety shall 
 83.12  make reasonable efforts to transfer the 
 83.13  affected employees to positions within 
 83.14  the department of corrections or 
 83.15  department of public safety.  
 83.16     Sec. 15.  Laws 1999, chapter 216, article 1, section 9, is 
 83.17  amended to read: 
 83.18  Sec. 9.  CRIME VICTIM 
 83.19  OMBUDSMAN                                404,000 389,000 379,000 
 83.20  $20,000 the first year is for the crime 
 83.21  victims case management system. 
 83.22                             ARTICLE 5 
 83.23                               COURTS 
 83.24     Section 1.  Minnesota Statutes 1998, section 169.89, 
 83.25  subdivision 2, is amended to read: 
 83.26     Subd. 2.  [PETTY MISDEMEANOR PENALTY; NO JURY TRIAL.] A 
 83.27  person charged with a petty misdemeanor is not entitled to a 
 83.28  jury trial but shall be tried by a judge without a jury.  If 
 83.29  convicted, the person is not subject to imprisonment but shall 
 83.30  be punished by a fine of not more than $200 $300. 
 83.31     Sec. 2.  Minnesota Statutes 1998, section 609.02, 
 83.32  subdivision 3, is amended to read: 
 83.33     Subd. 3.  [MISDEMEANOR.] "Misdemeanor" means a crime for 
 83.34  which a sentence of not more than 90 days or a fine of not more 
 83.35  than $700 $1,000, or both, may be imposed. 
 83.36     Sec. 3.  Minnesota Statutes 1998, section 609.02, 
 83.37  subdivision 4a, is amended to read: 
 83.38     Subd. 4a.  [PETTY MISDEMEANOR.] "Petty misdemeanor" means a 
 83.39  petty offense which is prohibited by statute, which does not 
 83.40  constitute a crime and for which a sentence of a fine of not 
 83.41  more than $200 $300 may be imposed. 
 83.42     Sec. 4.  Minnesota Statutes 1998, section 609.03, is 
 84.1   amended to read: 
 84.2      609.03 [PUNISHMENT WHEN NOT OTHERWISE FIXED.] 
 84.3      If a person is convicted of a crime for which no punishment 
 84.4   is otherwise provided the person may be sentenced as follows: 
 84.5      (1) If the crime is a felony, to imprisonment for not more 
 84.6   than five years or to payment of a fine of not more than 
 84.7   $10,000, or both; or 
 84.8      (2) If the crime is a gross misdemeanor, to imprisonment 
 84.9   for not more than one year or to payment of a fine of not more 
 84.10  than $3,000, or both; or 
 84.11     (3) If the crime is a misdemeanor, to imprisonment for not 
 84.12  more than 90 days or to payment of a fine of not more than 
 84.13  $700 $1,000, or both; or 
 84.14     (4) If the crime is other than a misdemeanor and a fine is 
 84.15  imposed but the amount is not specified, to payment of a fine of 
 84.16  not more than $1,000, or to imprisonment for a specified term of 
 84.17  not more than six months if the fine is not paid. 
 84.18     Sec. 5.  Minnesota Statutes 1998, section 609.033, is 
 84.19  amended to read: 
 84.20     609.033 [INCREASED MAXIMUM PENALTIES FOR MISDEMEANORS.] 
 84.21     Any law of this state which provides for a maximum fine of 
 84.22  $500 $700 as a penalty for a violation misdemeanor shall, on or 
 84.23  after August 1, 1983 2000, be deemed to provide for a maximum 
 84.24  fine of $700 $1,000.  
 84.25     Sec. 6.  Minnesota Statutes 1998, section 609.0331, is 
 84.26  amended to read: 
 84.27     609.0331 [INCREASED MAXIMUM PENALTIES FOR PETTY 
 84.28  MISDEMEANORS.] 
 84.29     A law of this state that provides, on or after August 1, 
 84.30  1987 2000, for a maximum penalty of $100 $200 for a petty 
 84.31  misdemeanor is considered to provide for a maximum fine 
 84.32  of $200 $300.  
 84.33     Sec. 7.  Minnesota Statutes 1998, section 609.0332, 
 84.34  subdivision 1, is amended to read: 
 84.35     Subdivision 1.  [INCREASED FINE.] From August 1, 1987 2000, 
 84.36  if a state law or municipal charter sets a limit of $100 $200 or 
 85.1   less on the fines that a statutory or home rule charter city, 
 85.2   town, county, or other political subdivision may prescribe for 
 85.3   an ordinance violation that is defined as a petty misdemeanor, 
 85.4   that law or charter is considered to provide that the political 
 85.5   subdivision has the power to prescribe a maximum fine of $200 
 85.6   $300 for the petty misdemeanor violation. 
 85.7      Sec. 8.  Minnesota Statutes 1998, section 609.034, is 
 85.8   amended to read: 
 85.9      609.034 [INCREASED MAXIMUM PENALTY FOR ORDINANCE 
 85.10  VIOLATIONS.] 
 85.11     Any law of this state or municipal charter which limits the 
 85.12  power of any statutory or home rule charter city, town, county, 
 85.13  or other political subdivision to prescribe a maximum fine of 
 85.14  $500 $700 or less for an ordinance shall on or after August 1, 
 85.15  1983 2000, be deemed to provide that the statutory or home rule 
 85.16  charter city, town, county, or other political subdivision has 
 85.17  the power to prescribe a maximum fine of $700 $1,000.  
 85.18     Sec. 9.  [AUTOMATED VICTIM NOTIFICATION SYSTEM.] 
 85.19     All courts and state and local correctional facilities 
 85.20  shall consider implementing an automated victim notification 
 85.21  system.  The commissioner of public safety, in cooperation with 
 85.22  the commissioners of children, families, and learning; 
 85.23  corrections; and economic security; shall provide financial 
 85.24  assistance to implement these systems.  The commissioners shall 
 85.25  determine the extent of the financial assistance and the manner 
 85.26  in which it will be provided.  Participating local governments 
 85.27  shall provide a cash or in-kind match as determined by the 
 85.28  commissioner of public safety. 
 85.29     Sec. 10.  [COURT SECURITY TRAINING PROGRAM.] 
 85.30     The superintendent of the bureau of criminal apprehension 
 85.31  shall develop and implement a training program for court and law 
 85.32  enforcement personnel.  The training program must: 
 85.33     (1) include methods to increase security within court 
 85.34  houses and surrounding property; 
 85.35     (2) focus on protecting judges, court employees, members of 
 85.36  the public, and participants in the legal process; and 
 86.1      (3) allow individuals who receive it to, in turn, 
 86.2   effectively train others. 
 86.3      Sec. 11.  [EFFECTIVE DATE.] 
 86.4      Sections 1 to 8 are effective August 1, 2000, and apply to 
 86.5   violations committed on or after that date. 
 86.6                              ARTICLE 6
 86.7                            PUBLIC SAFETY 
 86.8      Section 1.  Minnesota Statutes 1998, section 168A.40, 
 86.9   subdivision 3, is amended to read: 
 86.10     Subd. 3.  [SURCHARGE.] Each insurer engaged in the writing 
 86.11  of policies of automobile insurance shall collect a surcharge, 
 86.12  at the rate of 50 cents per vehicle for every six months of 
 86.13  coverage, on each policy of automobile insurance providing 
 86.14  comprehensive insurance coverage issued or renewed in this 
 86.15  state.  The surcharge may not be considered premium for any 
 86.16  purpose, including the computation of premium tax or agents' 
 86.17  commissions.  The amount of the surcharge must be separately 
 86.18  stated on either a billing or policy declaration sent to an 
 86.19  insured.  Insurers shall remit the revenue derived from this 
 86.20  surcharge at least quarterly to the board commissioner of public 
 86.21  safety for purposes of the automobile theft prevention 
 86.22  program described in section 299A.75.  For purposes of this 
 86.23  subdivision, "policy of automobile insurance" has the meaning 
 86.24  given it in section 65B.14, covering only the following types of 
 86.25  vehicles as defined in section 168.011: 
 86.26     (1) a passenger automobile; 
 86.27     (2) a pick-up truck; 
 86.28     (3) a van but not commuter vans as defined in section 
 86.29  168.126; or 
 86.30     (4) a motorcycle, 
 86.31     except that no vehicle with a gross vehicle weight in 
 86.32  excess of 10,000 pounds is included within this definition. 
 86.33     Sec. 2.  Minnesota Statutes 1998, section 168A.40, 
 86.34  subdivision 4, is amended to read: 
 86.35     Subd. 4.  [AUTOMOBILE THEFT PREVENTION ACCOUNT.] A special 
 86.36  revenue account is created in the state treasury to be credited 
 87.1   with the proceeds of the surcharge imposed under subdivision 3.  
 87.2   Revenue in the account may be used only for the automobile theft 
 87.3   prevention program described in section 299A.75.  The board may 
 87.4   not spend in any fiscal year more than ten percent of the money 
 87.5   in the fund for its administrative and operating costs. 
 87.6      Sec. 3.  Minnesota Statutes 1998, section 169.21, 
 87.7   subdivision 2, is amended to read: 
 87.8      Subd. 2.  [RIGHTS IN ABSENCE OF SIGNAL.] (a) Where 
 87.9   traffic-control signals are not in place or in operation, the 
 87.10  driver of a vehicle shall stop to yield the right-of-way to a 
 87.11  pedestrian crossing the roadway within a marked crosswalk or 
 87.12  within any crosswalk at an intersection but with no marked 
 87.13  crosswalk.  The driver must remain stopped until the pedestrian 
 87.14  has passed the lane in which the vehicle is stopped.  No 
 87.15  pedestrian shall suddenly leave a curb or other place of safety 
 87.16  and walk or run into the path of a vehicle which is so close 
 87.17  that it is impossible for the driver to yield.  This provision 
 87.18  shall not apply under the conditions as otherwise provided in 
 87.19  this subdivision. 
 87.20     (b) When any vehicle is stopped at a marked crosswalk or at 
 87.21  any unmarked crosswalk at an intersection with no marked 
 87.22  crosswalk to permit a pedestrian to cross the roadway, the 
 87.23  driver of any other vehicle approaching from the rear shall not 
 87.24  overtake and pass the stopped vehicle. 
 87.25     (c) It is unlawful for any person to drive a motor vehicle 
 87.26  through a column of school children crossing a street or highway 
 87.27  or past a member of a school safety patrol or adult crossing 
 87.28  guard, while the member of the school safety patrol or adult 
 87.29  crossing guard is directing the movement of children across a 
 87.30  street or highway and while the school safety patrol member or 
 87.31  adult crossing guard is holding an official signal in the stop 
 87.32  position.  A peace officer may arrest the driver of a motor 
 87.33  vehicle if the peace officer has probable cause to believe that 
 87.34  the driver has operated the vehicle in violation of this 
 87.35  paragraph within the past four hours.  
 87.36     (d) A person who violates this subdivision is guilty of a 
 88.1   misdemeanor and may be sentenced to imprisonment for not more 
 88.2   than 90 days or to payment of a fine of not more than $700, or 
 88.3   both.  A person who violates this subdivision a second or 
 88.4   subsequent time within one year of a previous conviction under 
 88.5   this subdivision is guilty of a gross misdemeanor and may be 
 88.6   sentenced to imprisonment for not more than one year or to 
 88.7   payment of a fine of not more than $3,000, or both. 
 88.8      Sec. 4.  Minnesota Statutes 1998, section 169.21, 
 88.9   subdivision 3, is amended to read: 
 88.10     Subd. 3.  [CROSSING BETWEEN INTERSECTIONS.] Every 
 88.11  pedestrian crossing a roadway at any point other than within a 
 88.12  marked crosswalk or within an unmarked crosswalk at an 
 88.13  intersection with no marked crosswalk shall yield the 
 88.14  right-of-way to all vehicles upon the roadway. 
 88.15     Any pedestrian crossing a roadway at a point where a 
 88.16  pedestrian tunnel or overhead pedestrian crossing has been 
 88.17  provided shall yield the right-of-way to all vehicles upon the 
 88.18  roadway. 
 88.19     Between adjacent intersections at which traffic-control 
 88.20  signals are in operation pedestrians shall not cross at any 
 88.21  place except in a marked crosswalk. 
 88.22     Notwithstanding the other provisions of this section every 
 88.23  driver of a vehicle shall:  (a) exercise due care to avoid 
 88.24  colliding with any bicycle or pedestrian upon any roadway and 
 88.25  (b) give an audible signal when necessary and exercise proper 
 88.26  precaution upon observing any child or any obviously confused or 
 88.27  incapacitated person upon a roadway. 
 88.28     Sec. 5.  [169.2151] [PEDESTRIAN SAFETY CROSSINGS.] 
 88.29     A local road authority may provide by ordinance for the 
 88.30  designation of pedestrian safety crossings on highways under the 
 88.31  road authority's jurisdiction where pedestrian safety 
 88.32  considerations require extra time for pedestrian crossing in 
 88.33  addition to the time recommended under the Minnesota manual of 
 88.34  uniform traffic control devices for pedestrian signals.  The 
 88.35  ordinance may provide for timing of pedestrian signals for such 
 88.36  crossings, consistent with the recommendations of the uniform 
 89.1   manual for pedestrian signal timing at senior citizen and 
 89.2   handicapped pedestrian crossings.  Cities other than cities of 
 89.3   the first class may designate a pedestrian safety crossing only 
 89.4   with the approval of the road authority having jurisdiction over 
 89.5   the crossing.  The authority of local road authorities to 
 89.6   determine pedestrian signal timing under this section is in 
 89.7   addition to any other control exercised by local road 
 89.8   authorities over the timing of pedestrian signals. 
 89.9      Sec. 6.  [299A.71] [JUVENILE PROSTITUTION LAW ENFORCEMENT 
 89.10  AND OFFICER TRAINING GRANTS.] 
 89.11     Subdivision 1.  [ESTABLISHMENT.] A grant program is 
 89.12  established for enhanced law enforcement efforts and peace 
 89.13  officer education and training to combat juvenile prostitution.  
 89.14  The goal of the grants is to provide peace officers with the 
 89.15  knowledge and skills to recognize individuals who sexually 
 89.16  exploit youth, charge and prosecute these individuals for 
 89.17  promotion and solicitation of prostitution, and effectively 
 89.18  communicate with the victims of juvenile prostitution. 
 89.19     Subd. 2.  [ELIGIBILITY.] The commissioner of public safety 
 89.20  shall make juvenile prostitution prevention grants to local law 
 89.21  enforcement agencies to provide enhanced efforts targeted to 
 89.22  juvenile prostitution and training and staff development 
 89.23  relating to the prevention of juvenile prostitution.  The law 
 89.24  enforcement agency must utilize all of the grant funding 
 89.25  received for efforts to combat juvenile prostitution. 
 89.26     Subd. 3.  [GRANT APPLICATION.] A local law enforcement 
 89.27  agency must submit an application to the commissioner of public 
 89.28  safety in the form and manner the commissioner establishes. 
 89.29     Sec. 7.  [299A.75] [AUTOMOBILE THEFT PREVENTION PROGRAM.] 
 89.30     Subdivision 1.  [PROGRAM DESCRIBED.] (a) The commissioner 
 89.31  of public safety shall: 
 89.32     (1) develop and sponsor the implementation of statewide 
 89.33  plans, programs, and strategies to combat automobile theft, 
 89.34  improve the administration of the automobile theft laws, and 
 89.35  provide a forum for identification of critical problems for 
 89.36  those persons dealing with automobile theft; 
 90.1      (2) coordinate the development, adoption, and 
 90.2   implementation of plans, programs, and strategies relating to 
 90.3   interagency and intergovernmental cooperation with respect to 
 90.4   automobile theft enforcement; 
 90.5      (3) annually audit the plans and programs that have been 
 90.6   funded in whole or in part to evaluate the effectiveness of the 
 90.7   plans and programs and withdraw funding should the commissioner 
 90.8   determine that a plan or program is ineffective or is no longer 
 90.9   in need of further financial support from the fund; 
 90.10     (4) develop a plan of operation including an assessment of 
 90.11  the scope of the problem of automobile theft, including areas of 
 90.12  the state where the problem is greatest; an analysis of various 
 90.13  methods of combating the problem of automobile theft; a plan for 
 90.14  providing financial support to combat automobile theft; a plan 
 90.15  for eliminating car hijacking; and an estimate of the funds 
 90.16  required to implement the plan; and 
 90.17     (5) distribute money from the automobile theft prevention 
 90.18  special revenue account for automobile theft prevention 
 90.19  activities, including: 
 90.20     (i) paying the administrative costs of the program; 
 90.21     (ii) providing financial support to the state patrol and 
 90.22  local law enforcement agencies for automobile theft enforcement 
 90.23  teams; 
 90.24     (iii) providing financial support to state or local law 
 90.25  enforcement agencies for programs designed to reduce the 
 90.26  incidence of automobile theft and for improved equipment and 
 90.27  techniques for responding to automobile thefts; 
 90.28     (iv) providing financial support to local prosecutors for 
 90.29  programs designed to reduce the incidence of automobile theft; 
 90.30     (v) providing financial support to judicial agencies for 
 90.31  programs designed to reduce the incidence of automobile theft; 
 90.32     (vi) providing financial support for neighborhood or 
 90.33  community organizations or business organizations for programs 
 90.34  designed to reduce the incidence of automobile theft; 
 90.35     (vii) providing financial support for automobile theft 
 90.36  educational and training programs for state and local law 
 91.1   enforcement officials, driver and vehicle services exam and 
 91.2   inspections staff, and members of the judiciary; and 
 91.3      (viii) conducting educational programs designed to inform 
 91.4   automobile owners of methods of preventing automobile theft and 
 91.5   to provide equipment, for experimental purposes, to enable 
 91.6   automobile owners to prevent automobile theft. 
 91.7      (b) The commissioner may not spend in any fiscal year more 
 91.8   than ten percent of the money in the fund for the program's 
 91.9   administrative and operating costs. 
 91.10     Subd. 2.  [ANNUAL REPORT.] By January 15 of each year, the 
 91.11  commissioner shall report to the governor and legislature on the 
 91.12  activities and expenditures in the preceding year. 
 91.13     Sec. 8.  [299E.03] [CAPITOL COMPLEX SECURITY OVERSIGHT 
 91.14  COMMITTEE.] 
 91.15     Subdivision 1.  [MEMBERSHIP.] (a) The capitol complex 
 91.16  security oversight committee consists of the following 
 91.17  individuals or their designees: 
 91.18     (1) the senate majority leader; 
 91.19     (2) the speaker of the house of representatives; 
 91.20     (3) the chief justice of the supreme court; 
 91.21     (4) the chair of the senate committee or division having 
 91.22  jurisdiction over criminal justice funding; 
 91.23     (5) the chair of the house of representatives committee or 
 91.24  division having jurisdiction over criminal justice funding; 
 91.25     (6) the commissioner of public safety; 
 91.26     (7) the commissioner of administration; 
 91.27     (8) the senate sergeant at arms; 
 91.28     (9) the house of representatives' sergeant at arms; 
 91.29     (10) the chief of the St. Paul police department; 
 91.30     (11) the president of a statewide association representing 
 91.31  government relations professionals; 
 91.32     (12) the director of the capitol complex security division; 
 91.33  and 
 91.34     (13) the chief supervisor of the state patrol. 
 91.35     (b) The committee may elect a chair from among its members. 
 91.36     Subd. 2.  [DUTIES.] The oversight committee shall: 
 92.1      (1) develop both a short-term and a long-term plan relating 
 92.2   to the provision of security in the capitol complex and in other 
 92.3   state-owned or leased buildings and property, including 
 92.4   providing necessary security to the following:  legislators, 
 92.5   constitutional officers, members of the judiciary, commissioners 
 92.6   of state agencies, state employees, visiting dignitaries, and 
 92.7   members of the public; 
 92.8      (2) develop guidelines that may be used to evaluate the 
 92.9   methods by which this security is provided; 
 92.10     (3) evaluate the budget for providing this security and 
 92.11  make annual budgetary recommendations to the legislature; and 
 92.12     (4) provide oversight to the entity providing capitol area 
 92.13  security and annually report to the legislature on the entity's 
 92.14  effectiveness. 
 92.15  The plans described in clause (1) must consider potential 
 92.16  shifting needs for security and the impact of new security 
 92.17  technology. 
 92.18     Subd. 3.  [EXPIRATION AND COMPENSATION.] Notwithstanding 
 92.19  section 15.059, the oversight committee does not expire.  
 92.20  Committee members may not receive compensation for serving, but 
 92.21  may receive expense reimbursements as provided in section 15.059.
 92.22     Sec. 9.  [CROSSWALK SAFETY AWARENESS PROGRAM.] 
 92.23     The Minnesota safety council shall continue its crosswalk 
 92.24  safety awareness program by: 
 92.25     (1) developing and distributing crosswalk safety education 
 92.26  campaign materials; 
 92.27     (2) creating and placing advertisements in mass media 
 92.28  throughout the state; and 
 92.29     (3) making grants to local units of government and law 
 92.30  enforcement agencies for: 
 92.31     (i) implementing pedestrian safety awareness activities; 
 92.32     (ii) providing increased signage and crosswalk markings and 
 92.33  evaluating their effect on highway safety; and 
 92.34     (iii) enhancing enforcement of pedestrian safety laws. 
 92.35     Sec. 10.  [JOINT DOMESTIC ABUSE PROSECUTION UNIT.] 
 92.36     Subdivision 1.  [ESTABLISHMENT.] A pilot project is 
 93.1   established to develop a joint domestic abuse prosecution unit 
 93.2   administered by the Ramsey county attorney's office and the St. 
 93.3   Paul city attorney's office.  The unit has authority to 
 93.4   prosecute misdemeanors, gross misdemeanors, and felonies.  The 
 93.5   unit shall also coordinate efforts with child protection 
 93.6   attorneys.  The unit may include four cross-deputized assistant 
 93.7   city attorneys and assistant county attorneys.  A victim/witness 
 93.8   advocate, a law clerk, and a legal secretary may provide support.
 93.9      Subd. 2.  [GOALS.] The goals of this pilot project are to: 
 93.10     (1) recognize children as both victims and witnesses in 
 93.11  domestic abuse situations; 
 93.12     (2) recognize and respect the interests of children in the 
 93.13  prosecution of domestic abuse; and 
 93.14     (3) reduce the exposure to domestic violence for both adult 
 93.15  and child victims. 
 93.16     Subd. 3.  [REPORT.] The Ramsey county attorney's office and 
 93.17  the St. Paul city attorney's office shall report to the chairs 
 93.18  and ranking minority members of the senate and house committees 
 93.19  and divisions having jurisdiction over criminal justice policy 
 93.20  and funding on the pilot project.  The report may include the 
 93.21  number and types of cases referred, the number of cases charged, 
 93.22  the outcome of cases, and other relevant outcome measures.  A 
 93.23  progress report is due January 15, 2001, and a final report is 
 93.24  due January 15, 2002. 
 93.25     Subd. 4.  [SHARING OF PILOT PROJECT RESULTS.] The Ramsey 
 93.26  county attorney's office and the St. Paul city attorney's office 
 93.27  shall share the results of the pilot project with the state and 
 93.28  other counties and cities. 
 93.29     Sec. 11.  [DOMESTIC VIOLENCE SHELTER STUDY.] 
 93.30     By March 15, 2001, the center for applied research and 
 93.31  policy analysis at Metropolitan State University, in cooperation 
 93.32  with the Minnesota center for crime victim services and the 
 93.33  department of public safety, shall study and make 
 93.34  recommendations to the chairs and ranking minority members of 
 93.35  the senate and house committees and divisions having 
 93.36  jurisdiction over criminal justice funding on issues related to 
 94.1   providing shelter for victims of domestic violence.  The study 
 94.2   must estimate the relative impact of the following, as it 
 94.3   relates to providing shelter for victims of domestic violence: 
 94.4      (1) the incidence of domestic violence; 
 94.5      (2) law enforcement practices in response to domestic 
 94.6   violence; 
 94.7      (3) the number of victims seeking shelter and whether 
 94.8   adequate shelter space exists, and trends regarding this; 
 94.9      (4) the number of victims who have children also needing 
 94.10  shelter; 
 94.11     (5) the financial status of domestic violence victims; 
 94.12     (6) the necessary length of stay in shelters; and 
 94.13     (7) opportunities for victims to leave shelters. 
 94.14  In studying these issues, the center shall analyze costs and 
 94.15  demand for shelters in other states having programs comparable 
 94.16  to Minnesota's. 
 94.17     Sec. 12.  [REVISOR INSTRUCTION.] 
 94.18     In the next edition of Minnesota Statutes, the revisor 
 94.19  shall eliminate all references to the automobile theft 
 94.20  prevention board and correct all cross references to statutes 
 94.21  repealed in section 13.  
 94.22     Sec. 13.  [REPEALER.] 
 94.23     Minnesota Statutes 1998, section 168A.40, subdivision 1, 
 94.24  and Minnesota Statutes 1999 Supplement, section 168A.40, 
 94.25  subdivision 2, are repealed. 
 94.26     Sec. 14.  [EFFECTIVE DATE.] 
 94.27     Sections 3 to 5 are effective September 1, 2000. 
 94.28                             ARTICLE 7 
 94.29                            CORRECTIONS 
 94.30     Section 1.  [241.018] [PER DIEM CALCULATION.] 
 94.31     (a) The commissioner of corrections shall develop a uniform 
 94.32  method to calculate the average department wide per diem cost of 
 94.33  incarcerating offenders at state adult correctional facilities.  
 94.34  In addition to other costs currently factored into the per diem, 
 94.35  it must include an appropriate percentage of capitol costs for 
 94.36  all adult correctional facilities and 65 percent of the 
 95.1   department's management services budget. 
 95.2      (b) The commissioner also shall use this method of 
 95.3   calculating per diem costs for offenders in each state adult 
 95.4   correctional facility.  When calculating the per diem cost of 
 95.5   incarcerating offenders at a particular facility, the 
 95.6   commissioner shall include an appropriate percentage of capital 
 95.7   costs for the facility and an appropriate prorated amount, given 
 95.8   the facility's population, of 65 percent of the department's 
 95.9   management services budget. 
 95.10     (c) The commissioner shall ensure that these new per diem 
 95.11  methods are used in all future instances in which per diem 
 95.12  charges are reported. 
 95.13     (d) The commissioner shall report information related to 
 95.14  these per diems to the chairs and ranking minority members of 
 95.15  the senate and house committees and divisions having 
 95.16  jurisdiction over criminal justice funding by January 15, 2001. 
 95.17     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
 95.18  242.192, is amended to read: 
 95.19     242.192 [CHARGES TO COUNTIES.] 
 95.20     (a) Until June 30, 2001, the commissioner shall charge 
 95.21  counties or other appropriate jurisdictions for 65 percent of 
 95.22  the actual per diem cost of confinement, excluding educational 
 95.23  costs and nonbillable service, of juveniles at the Minnesota 
 95.24  correctional facility-Red Wing and of juvenile females committed 
 95.25  to the commissioner of corrections.  This charge applies to 
 95.26  juveniles committed to the commissioner of corrections and 
 95.27  juveniles admitted to the Minnesota correctional facility-Red 
 95.28  Wing under established admissions criteria.  This charge applies 
 95.29  to both counties that participate in the Community Corrections 
 95.30  Act and those that do not.  The commissioner shall annually 
 95.31  determine costs, making necessary adjustments to reflect the 
 95.32  actual costs of confinement the per diem cost of confinement 
 95.33  based on projected population, pricing incentives, market 
 95.34  conditions, and the requirement that expense and revenue balance 
 95.35  out over a period of two years.  All money received under this 
 95.36  section must be deposited in the state treasury and credited to 
 96.1   the general fund. 
 96.2      (b) Until June 30, 2001, the department of corrections 
 96.3   shall be responsible for 35 percent of the per diem cost of 
 96.4   confinement described in this section. 
 96.5      Sec. 3.  [242.193] [JUVENILE RESIDENTIAL TREATMENT GRANTS.] 
 96.6      Subdivision 1.  [GRANTS.] Within the limits of available 
 96.7   appropriations, the commissioner of corrections shall make 
 96.8   juvenile residential treatment grants to counties to defray the 
 96.9   cost of juvenile residential treatment.  The commissioner shall 
 96.10  distribute 80 percent of the money appropriated for these 
 96.11  purposes to noncommunity corrections counties and 20 percent to 
 96.12  Community Corrections Act counties.  The commissioner shall 
 96.13  distribute the money according to the formula contained in 
 96.14  section 401.10. 
 96.15     Subd. 2.  [REPORT.] By January 15 of each year, each county 
 96.16  that received a grant shall submit a report to the commissioner 
 96.17  describing the purposes for which the grants were used.  By 
 96.18  March 15 of each year, the commissioner shall summarize this 
 96.19  information and report it to the chairs and ranking minority 
 96.20  members of the senate and house of representatives committees 
 96.21  and divisions having jurisdiction over criminal justice funding. 
 96.22     Sec. 4.  Minnesota Statutes 1998, section 242.41, is 
 96.23  amended to read: 
 96.24     242.41 [THE MINNESOTA CORRECTIONAL FACILITY-RED WING.] 
 96.25     There is established the Minnesota correctional 
 96.26  facility-Red Wing at Red Wing, Minnesota, in which may be placed 
 96.27  persons committed to the commissioner of corrections by the 
 96.28  courts of this state who, in the opinion of the commissioner, 
 96.29  may benefit from the programs available thereat or admitted 
 96.30  consistent with established admissions criteria.  When reviewing 
 96.31  placement requests from counties, the commissioner shall take 
 96.32  into consideration the purpose of the Minnesota correctional 
 96.33  facility-Red Wing which is to educate and provide treatment for 
 96.34  serious and chronic juvenile offenders for which the county has 
 96.35  exhausted local resources.  The general control and management 
 96.36  of the facility shall be under the commissioner of corrections.  
 97.1      Sec. 5.  Minnesota Statutes 1998, section 242.43, is 
 97.2   amended to read: 
 97.3      242.43 [COMMISSIONER, DUTIES.] 
 97.4      The commissioner of corrections shall receive, clothe, 
 97.5   maintain, and instruct, at the expense of the state, all 
 97.6   children duly committed to the corrections department and placed 
 97.7   in a state correctional facility for juveniles and keep them in 
 97.8   custody until placed on probation, paroled, or discharged.  The 
 97.9   commissioner may place any of these children in suitable foster 
 97.10  care facilities or cause them to be instructed in such trades or 
 97.11  employment as in the commissioner's judgment will be most 
 97.12  conducive to their reformation and tend to the future benefit 
 97.13  and advantage of these children.  The commissioner may discharge 
 97.14  any child so committed, or may recall to the facility at any 
 97.15  time any child paroled, placed on probation, or transferred; 
 97.16  and, upon recall, may resume the care and control thereof.  The 
 97.17  discharge of a child by the commissioner shall be a complete 
 97.18  release from all penalties and disabilities created by reason of 
 97.19  the commitment. 
 97.20     Upon the parole or discharge of any inmate of any state 
 97.21  juvenile correctional facility, the commissioner of corrections 
 97.22  may pay to each inmate released an amount of money not exceeding 
 97.23  the sum of $10.  All payments shall be made from the current 
 97.24  expense fund of the facility.  
 97.25     Sec. 6.  Minnesota Statutes 1998, section 242.44, is 
 97.26  amended to read: 
 97.27     242.44 [PUPILS.] 
 97.28     The commissioner of corrections, so far as the 
 97.29  accommodations of the correctional facilities and other means at 
 97.30  the commissioner's disposal will permit, shall may receive and 
 97.31  keep until they reach 19 years of age, or until placed in homes, 
 97.32  or discharged, all persons committed to the commissioner's care 
 97.33  and custody by a juvenile court juvenile delinquents and 
 97.34  juvenile offenders serving a juvenile disposition under section 
 97.35  260B.130, subdivision 4.  The commissioner's housing of these 
 97.36  individuals must be consistent with federal and state law, 
 98.1   including established admissions criteria for Minnesota 
 98.2   correctional facility-Red Wing.  The commissioner may place 
 98.3   these youths at employment, may provide education suitable to 
 98.4   their years and capacity, and may place them in suitable homes.  
 98.5   Under rules prescribed by the commissioner, when deemed best for 
 98.6   these youths, they persons committed to the commissioner's care 
 98.7   and custody by a juvenile court may be paroled or discharged 
 98.8   from the facility by the commissioner.  All pupils in the 
 98.9   facility shall be clothed, instructed, and maintained at the 
 98.10  expense of the state by the commissioner of corrections. 
 98.11     Sec. 7.  [260B.199] [PLACEMENT OF JUVENILE OFFENDERS AT 
 98.12  MINNESOTA CORRECTIONAL FACILITY-RED WING.] 
 98.13     Subdivision 1.  [WHEN COURT MUST CONSIDER; PROHIBITION ON 
 98.14  PLACEMENT AT OUT-OF-STATE FACILITY.] The admissions criteria for 
 98.15  the Minnesota correctional facility-Red Wing shall include a 
 98.16  requirement that the county of referral must have considered all 
 98.17  appropriate local or regional placements and have exhausted 
 98.18  potential in-state placements in the geographic region.  The 
 98.19  court must state on the record that this effort was made and 
 98.20  placements rejected before ordering a placement or commitment to 
 98.21  the Minnesota correctional facility-Red Wing.  Before a court 
 98.22  orders a disposition under section 260B.198 or 260B.130, 
 98.23  subdivision 4, for a child, the court shall determine whether 
 98.24  the child meets the established admissions criteria for the 
 98.25  Minnesota correctional facility-Red Wing.  If the child meets 
 98.26  the admissions criteria, the court shall place the child at the 
 98.27  facility and may not place the child in an out-of-state 
 98.28  facility, unless the court makes a finding on the record that 
 98.29  the safety of the child or the safety of the community can be 
 98.30  best met by placement in an out-of-state facility or that the 
 98.31  out-of-state facility is located closer to the child's home. 
 98.32     Subd. 2.  [REPORT REQUIRED.] (a) A court that places a 
 98.33  child in an out-of-state facility shall report the following 
 98.34  information to the sentencing guidelines commission: 
 98.35     (1) the out-of-state facility the child was placed at and 
 98.36  the reasons for this placement; 
 99.1      (2) the in-state facilities at which placement was 
 99.2   considered; 
 99.3      (3) the reasons for not choosing an in-state facility; 
 99.4      (4) the reasons why the child did not meet the established 
 99.5   admissions criteria for the Minnesota correctional facility-Red 
 99.6   Wing, if applicable; and 
 99.7      (5) if the child met the admissions criteria, the reasons 
 99.8   why the safety of the child or the safety of the community could 
 99.9   not be met at the Minnesota correctional facility-Red Wing. 
 99.10     (b) By February 15 of each year, the commission shall 
 99.11  forward a summary of the reports received from courts under this 
 99.12  subdivision for the preceding year to the chairs and ranking 
 99.13  minority members of the senate and house of representatives 
 99.14  committees and divisions having jurisdiction over criminal 
 99.15  justice policy and funding. 
 99.16     Sec. 8.  [260B.201] [MANDATORY COMMITMENT TO COMMISSIONER 
 99.17  OF CORRECTIONS.] 
 99.18     Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
 99.19  the following terms have the meanings given them. 
 99.20     (b) "Chemical dependency treatment" means a comprehensive 
 99.21  set of planned and organized services, therapeutic experiences, 
 99.22  and interventions that are intended to improve the prognosis, 
 99.23  function, or outcome of patients by reducing the risk of the use 
 99.24  of alcohol, drugs, or other mind-altering substances and assist 
 99.25  the patient to adjust to, and deal more effectively with, life 
 99.26  situations. 
 99.27     (c) An offender has "failed or refused to successfully 
 99.28  complete" treatment when based on factors within the offender's 
 99.29  control, the offender is not able to substantially achieve the 
 99.30  program's goals and the program's director determines that based 
 99.31  on the offender's prior placement or treatment history, further 
 99.32  participation in the program would not result in its successful 
 99.33  completion. 
 99.34     (d) "Probation" has the meaning given in section 609.02, 
 99.35  subdivision 15. 
 99.36     (e) "Sex offender treatment" means a comprehensive set of 
100.1   planned and organized services, therapeutic experiences, and 
100.2   interventions that are intended to improve the prognosis, 
100.3   function, or outcome of patients by reducing the risk of sexual 
100.4   reoffense and other aggressive behavior and assist the patient 
100.5   to adjust to, and deal more effectively with, life situations. 
100.6      Subd. 2.  [WHEN COMMITMENT REQUIRED.] (a) A court having 
100.7   jurisdiction over a child shall commit the child to the custody 
100.8   of the commissioner of corrections or place the child at the 
100.9   Minnesota correctional facility-Red Wing if the child: 
100.10     (1) was previously adjudicated delinquent or convicted as 
100.11  an extended jurisdiction juvenile for an offense for which 
100.12  registration under section 243.166 was required; 
100.13     (2) was placed on probation for the offense and ordered to 
100.14  complete a sex offender or chemical dependency treatment 
100.15  program; and 
100.16     (3) subsequently failed or refused to successfully complete 
100.17  the program. 
100.18     (b) If the child was initially convicted as an extended 
100.19  jurisdiction juvenile, the court may execute the child's adult 
100.20  sentence under section 260B.130, subdivision 4.  Notwithstanding 
100.21  paragraph (c), if the court does not do this, it shall comply 
100.22  with paragraph (a). 
100.23     (c) A court may place a child in an out-of-state facility 
100.24  if the court makes a finding on the record that the safety of 
100.25  the child or the safety of the community can be best met by 
100.26  placement in an out-of-state facility or that the out-of-state 
100.27  facility is located closer to the child's home. 
100.28     Subd. 3.  [REPORT REQUIRED.] A court ordering an 
100.29  alternative placement under subdivision 2, paragraph (c), shall 
100.30  report to the sentencing guidelines commission on the placement 
100.31  ordered and the reasons for not committing the child to the 
100.32  custody of the commissioner of corrections.  If the alternative 
100.33  placement is to an out-of-state facility, the report must 
100.34  include specific information that the safety of the child or the 
100.35  safety of the community can best be met by placement in an 
100.36  out-of-state facility or that the out-of-state facility is 
101.1   located closer to the child's home.  By February 15 of each 
101.2   year, the commission shall summarize the reports received from 
101.3   courts under this paragraph for the preceding year and forward 
101.4   this summary to the chairs and ranking minority members of the 
101.5   senate and house of representatives committees and divisions 
101.6   having jurisdiction over criminal justice policy and funding. 
101.7      Sec. 9.  [LEGISLATIVE INTENT.] 
101.8      It is the intent of the legislature that this article 
101.9   encourage courts to place juvenile offenders at the Minnesota 
101.10  correctional facility-Red Wing who would otherwise be placed in 
101.11  out-of-state facilities.  Except as provided in section 8, it is 
101.12  not the legislature's intent to discourage the placement of 
101.13  juvenile offenders at non-state-operated facilities within 
101.14  Minnesota. 
101.15     Sec. 10.  [STUDY; REPORT.] 
101.16     (a) The commissioner of corrections, in consultation with 
101.17  the counties, shall study the state's juvenile correctional 
101.18  system as it relates to serious and chronic offenders.  The 
101.19  study must analyze and make proposals regarding: 
101.20     (1) the role of the state and counties in providing 
101.21  services; 
101.22     (2) the funding of these services; 
101.23     (3) the extent to which research-based best practices exist 
101.24  and are accessible to counties; 
101.25     (4) the method and process used to administer the juvenile 
101.26  commitment and parole systems; 
101.27     (5) the degree to which existing practice reflects the 
101.28  legislature's intent in enacting juvenile justice laws; and 
101.29     (6) other related issues deemed relevant by the 
101.30  commissioner or the counties. 
101.31     (b) By January 15, 2001, the commissioner shall report the 
101.32  study's findings and proposals to the chairs and ranking 
101.33  minority members of the senate and house of representatives 
101.34  committees and divisions having jurisdiction over criminal 
101.35  justice policy funding. 
101.36     Sec. 11.  [REPORT.] 
102.1      The commissioner shall report information relating to 
102.2   changes in per diem charges to counties for juveniles placed at 
102.3   the Minnesota correctional facility-Red Wing and the resulting 
102.4   reduction in juvenile residential treatment grants to the chairs 
102.5   and ranking minority members of the senate and house committees 
102.6   and divisions having jurisdiction over criminal justice funding 
102.7   by January 15, 2001.  This report shall specifically address any 
102.8   impact on the populations at other state, public, or private 
102.9   juvenile residential facilities and shall specifically include 
102.10  any effect on the population of the Thistledew Camp caused by 
102.11  the per diem reduction at Red Wing.  The report shall also 
102.12  recommend approaches, based on consultation with and input from 
102.13  counties, to achieve financial stability at Minnesota 
102.14  correctional facility-Red Wing.  
102.15     Sec. 12.  [CONVEYANCE OF STATE LAND.] 
102.16     Subdivision 1.  [CONVEYANCE AUTHORIZED.] Notwithstanding 
102.17  Minnesota Statutes, sections 92.45, 94.09, 94.10, and 103F.335, 
102.18  subdivision 3, or any other law to the contrary, the 
102.19  commissioner of administration may convey all, or any part of, 
102.20  the land and the state building located on the land described in 
102.21  subdivision 3, to the central Minnesota regional jail joint 
102.22  powers group comprised of Aitkin, Cass, Crow Wing, Morrison, 
102.23  Todd, and Wadena counties, after the commissioner of human 
102.24  services declares the property surplus to its needs. 
102.25     Subd. 2.  [FORM.] (a) The conveyance shall be in a form 
102.26  approved by the attorney general. 
102.27     (b) The conveyance shall restrict use of the land to county 
102.28  governmental purposes under a joint powers agreement, including 
102.29  regional jails and community corrections programs, and shall 
102.30  provide that ownership of any portion of the land or building 
102.31  that ceases to be used for such purposes shall revert to the 
102.32  state of Minnesota. 
102.33     Subd. 3.  [LAND DESCRIPTION.] The legal description of the 
102.34  land is:  that part of the Southeast Quarter (SE 1/4) of the 
102.35  Northeast Quarter (NE 1/4) of Section 29, Township 45 North, 
102.36  Range 30 West, Crow Wing County, Minnesota, described as 
103.1   follows:  Building 5 and Rectangular site area, on a NW to SE 
103.2   axis, where the northwest side of said area is the centerline of 
103.3   Robin Road.  Extending southwest, 540'-0" from the midpoint 
103.4   between Building 5 and Building 7, the SW to NE dimension is 
103.5   540'-0".  Extending southeast, 675'-0" from the centerline of 
103.6   Robin Road, the SE to NW dimension is 675'-0".  Containing 8.37 
103.7   acres, more or less.  Subject to the right-of-way of the 
103.8   Township road along the east side thereof, subject to other 
103.9   easements, reservations, and restrictions of record, if any.  
103.10  Including a road easement for ingress and egress from state 
103.11  Highway 18 over State Avenue and Robin Road to the junction of 
103.12  Meadowlark Lane. 
103.13     Subd. 4.  [DETERMINATION.] The commissioner of human 
103.14  services has determined that the land described in subdivision 3 
103.15  and the building on the land will not be needed for future 
103.16  operations of the Brainerd regional human services center.  The 
103.17  state's land management interests would best be served by 
103.18  conveying the land to the central Minnesota regional jail joint 
103.19  powers group for governmental use. 
103.20                             ARTICLE 8
103.21                           APPROPRIATIONS 
103.22  Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
103.23     The sums shown in the columns marked "APPROPRIATIONS" are 
103.24  appropriated from the general fund, or any other fund named, to 
103.25  the agencies and for the purposes specified in this article, to 
103.26  be available for the fiscal years indicated for each purpose.  
103.27  The figures "2000" and "2001"  mean that the appropriation or 
103.28  appropriations listed under them are available for the fiscal 
103.29  year ending June 30, 2000, or June 30, 2001, respectively, and 
103.30  if an earlier appropriation was made for that purpose for that 
103.31  year, the appropriation in this article is added to it.  Where a 
103.32  dollar amount appears in parenthesis, it means a reduction of an 
103.33  earlier appropriation for that purpose for that year. 
103.34                          SUMMARY BY FUND 
103.35  APPROPRIATIONS                                      BIENNIAL
103.36                            2000          2001           TOTAL
104.1   General            $   10,328,000 $   81,995,000 $   92,323,000 
104.2   State Government
104.3   Special Revenue           150,000          -0-          150,000
104.4   Health Care Access 
104.5   Fund                    1,266,000      3,401,000      4,667,000 
104.6   Lottery Prize Fund        -0-            248,000        248,000
104.7   TOTAL              $   11,744,000 $   85,644,000 $   97,388,000 
104.8                                              APPROPRIATIONS 
104.9                                          Available for the Year 
104.10                                             Ending June 30 
104.11                                            2000         2001 
104.12  Sec. 2.  COMMISSIONER OF 
104.13  HUMAN SERVICES 
104.14  Subdivision 1.  Total 
104.15  Appropriation                     $   11,594,000 $84,604,000
104.16                Summary by Fund
104.17  General              10,328,000 80,955,000
104.18  Health Care Access    1,266,000 3,401,000
104.19  Lottery                 -0-           248,000
104.20  This appropriation is added to the 
104.21  appropriation in Laws 1999, chapter 
104.22  245, article 1, section 2. 
104.23  The amounts that are added to or 
104.24  reduced from the appropriation for each 
104.25  program are specified in the following 
104.26  subdivisions. 
104.27  Subd. 2.  Children's Grants
104.28      1,130,000       3,307,000
104.29  [ADOPTION ASSISTANCE/RELATIVE CUSTODY 
104.30  ASSISTANCE.] Of this appropriation, 
104.31  $674,000 in fiscal year 2000 and 
104.32  $1,800,000 in fiscal year 2001 is for 
104.33  the adoption assistance program under 
104.34  Minnesota Statutes, section 259.67, and 
104.35  $456,000 in fiscal year 2000 and 
104.36  $912,000 in fiscal year 2001 is for the 
104.37  relative custody assistance program 
104.38  under Minnesota Statutes, section 
104.39  257.85.  This is a one-time 
104.40  appropriation that shall not be added 
104.41  to the base level funding for these 
104.42  programs. 
104.43  Subd. 3.  Basic Health Care Grants
104.44      14,984,000     50,813,000 
104.45                Summary by Fund
104.46  General              13,718,000    47,412,000 
104.47  Health Care Access    1,266,000     3,401,000 
104.48  The amounts that may be spent from this 
104.49  appropriation for each purpose are as 
105.1   follows: 
105.2   (a) Minnesota Care Grants
105.3   Health Care Access Fund
105.4        1,266,000      3,401,000 
105.5   [WELFARE TO WORK.] The commissioner is 
105.6   authorized to apply for a grant from 
105.7   the Robert Wood Johnson Foundation for 
105.8   technical support with health care 
105.9   program processes to assist families as 
105.10  they move from welfare to work and 
105.11  shall seek federal financial 
105.12  participation.  Any federal matching 
105.13  funds received as a result of the grant 
105.14  shall be dedicated to the commissioner 
105.15  for the project funded by the grant.  
105.16  All funds received shall be accounted 
105.17  for in a special revenue fund account. 
105.18  (b) MA Basic Health Care Grants-
105.19  Families and Children
105.20  General  22,751,000    23,328,000 
105.21  [ADVANCE CAPITATION PAYMENTS.] The 
105.22  commissioner shall provide an advance 
105.23  of up to $500,000 in June of 2001 and 
105.24  June of 2002, not to exceed the total 
105.25  monthly per capita payment due for 
105.26  services provided in June, to 
105.27  county-based purchasing sites operating 
105.28  under Minnesota Statutes, section 
105.29  256B.692.  These advances shall be 
105.30  recovered from the following month's 
105.31  per capita payments.  Notwithstanding 
105.32  section 6, this paragraph expires on 
105.33  August 1, 2002. 
105.34  (c) MA Basic Health Care Grants - 
105.35  Elderly and  Disabled
105.36  General  (3,730,000)   14,071,000 
105.37  [SPECIAL TRANSPORTATION.] Of the 
105.38  general fund appropriation for the 
105.39  fiscal year beginning July 1, 2000, 
105.40  $436,000 for medical assistance and 
105.41  $8,000 for general assistance medical 
105.42  care is for the commissioner to 
105.43  increase mileage reimbursement for 
105.44  special transportation under Minnesota 
105.45  Statutes, section 256B.0625, 
105.46  subdivision 17, by ten cents per mile 
105.47  for services rendered from July 1, 
105.48  2000, to June 30, 2001. 
105.49  (d) General Assistance Medical Care
105.50  General  (5,303,000)   10,013,000 
105.51  (e) Health Care Nonentitlement Grants
105.52           -0-          -0-     
105.53  Subd. 4.  State-Operated Services
105.54        -0-          (1,495,000)
105.55  [STATE-OPERATED SERVICES BASE 
106.1   REDUCTION.] The general fund base level 
106.2   appropriation for state operated 
106.3   services programs and activities shall 
106.4   be reduced by $1,495,000 for fiscal 
106.5   year 2001.  
106.6   The amounts that may be spent from this 
106.7   appropriation for each purpose are as 
106.8   follows: 
106.9   (a) RTC Facilities
106.10        -0-            (1,495,000)
106.11  Subd. 5.  Continuing Care and 
106.12  Community Support Grants
106.13     (35,029,000)     6,611,000
106.14                Summary by Fund
106.15  General             (35,029,000)    6,363,000
106.16  Lottery                 -0-           248,000
106.17  The amounts that may be spent from this 
106.18  appropriation for each purpose are as 
106.19  follows: 
106.20  (a) Community Services Block Grants
106.21         -0-            901,000 
106.22  (b) Aging Adult Service Grants
106.23         -0-             207,000
106.24  [EPILEPSY.] Of the general fund 
106.25  appropriation, $7,000 in fiscal year 
106.26  2001 is to the commissioner to provide 
106.27  a three percent reimbursement increase 
106.28  to living skills training programs for 
106.29  persons with intractable epilepsy who 
106.30  need assistance in the transition to 
106.31  independent living. 
106.32  [HOME SHARE PROGRAM.] Base level 
106.33  funding for the home share program 
106.34  established under Minnesota Statutes, 
106.35  section 256.973, for fiscal year 2002 
106.36  shall be $175,000.  Notwithstanding 
106.37  section 6, this paragraph expires on 
106.38  June 30, 2002. 
106.39  (c) Deaf and Hard-of-Hearing 
106.40  Services Grants
106.41         -0-             21,000 
106.42  (d) Mental Health Grants
106.43  General                 -0-         1,830,000
106.44  Lottery                 -0-           248,000
106.45  [SERVICES FOR FARMERS.] Of the 
106.46  appropriation from the general fund for 
106.47  the fiscal year beginning July 1, 2000, 
106.48  $400,000 is to the commissioner for the 
106.49  following purposes: 
107.1   (1) $250,000 is to be transferred to 
107.2   the commissioner of agriculture for 
107.3   grants to organizations participating 
107.4   in the farm wrap network and the rural 
107.5   help network.  The grants may be used 
107.6   for mental health services and 
107.7   emergency services for farmers.  
107.8   (2) $150,000 is to be transferred to 
107.9   the board of trustees of the Minnesota 
107.10  state colleges and universities for 
107.11  mental health counseling support to 
107.12  farm families and business operators 
107.13  through the farm business management 
107.14  program at Central Lakes college and 
107.15  Ridgewater college. 
107.16  [COMPULSIVE GAMBLING TREATMENT.] For 
107.17  the fiscal year beginning July 1, 2000, 
107.18  $248,000 is appropriated from the 
107.19  lottery prize fund to the commissioner 
107.20  for the compulsive gambling treatment 
107.21  program.  Of this appropriation, 
107.22  $143,000 is for a grant to gamblers 
107.23  intervention services in Duluth to be 
107.24  spent as follows: 
107.25  (1) $100,000 is to establish an 
107.26  outpatient gambling treatment program 
107.27  in Brainerd; and 
107.28  (2) $43,000 is to make treatment center 
107.29  building improvements to accommodate 
107.30  expanded group services. 
107.31  $75,000 is for a grant to the Minnesota 
107.32  arrowhead region gambling treatment 
107.33  alliance to provide extended outreach 
107.34  and family counseling through its 
107.35  Virginia center. 
107.36  The remaining $30,000 is for a grant to 
107.37  gamblers choice in Minneapolis to make 
107.38  treatment center building improvements 
107.39  to accommodate expanded group services. 
107.40  These are one-time appropriations and 
107.41  shall not become part of base-level 
107.42  funding for the 2002-2003 biennium. 
107.43  (e) Developmental Disabilities
107.44  Support Grants
107.45         -0-            204,000 
107.46  (f) Medical Assistance Long-Term 
107.47  Care Waivers and Home Care
107.48     (12,385,000)     2,797,000  
107.49  (g) Medical Assistance Long-Term
107.50  Care Facilities
107.51     (20,790,000)    (3,405,000)                 
107.52  (h) Alternative Care Grants  
107.53         -0-          1,633,000                
107.54  (i) Group Residential Housing
108.1       (1,854,000)      (295,000)                
108.2   (j) Chemical Dependency
108.3   Entitlement Grants
108.4          -0-          2,470,000                 
108.5   Subd. 6.  Economic Support Grants
108.6       30,509,000     25,368,000                 
108.7   The amounts that may be spent from this 
108.8   appropriation for each purpose are as 
108.9   follows: 
108.10  [ASSISTANCE TO FAMILIES GRANTS TANF 
108.11  FORECAST ADJUSTMENT.] The federal 
108.12  Temporary Assistance to Needy Families 
108.13  (TANF) block grant fund appropriated to 
108.14  the commissioner of human services in 
108.15  Laws 1999, chapter 245, article 1, 
108.16  section 2, subdivision 10, for MFIP 
108.17  cash grants are reduced by $37,513,000 
108.18  in fiscal year 2000 and $30,217,000 in 
108.19  fiscal year 2001. 
108.20  [FEDERAL TANF FUNDS.] (1) In addition 
108.21  to the Federal Temporary Assistance for 
108.22  Needy Families (TANF) block grant funds 
108.23  appropriated to the commissioner of 
108.24  human services in Laws 1999, chapter 
108.25  245, article 1, section 2, subdivision 
108.26  10, federal TANF funds are appropriated 
108.27  to the commissioner in amounts up to 
108.28  $20,000,000 in fiscal year 2000 and 
108.29  $80,440,000 in fiscal year 2001.  In 
108.30  addition to these funds, the 
108.31  commissioner may draw or transfer any 
108.32  other appropriations of federal TANF 
108.33  funds or transfers of federal TANF 
108.34  funds that are enacted into state law. 
108.35  (2) Of the amounts in clause (1), 
108.36  $19,680,000 in fiscal year 2001 is for 
108.37  the local intervention grants program 
108.38  under Minnesota Statutes, section 
108.39  256J.625 and related grant programs and 
108.40  shall be expended as follows: 
108.41  (a) $500,000 in fiscal year 2001 is for 
108.42  a grant to the Southeast Asian MFIP 
108.43  services collaborative to replicate in 
108.44  a second location an existing model of 
108.45  an intensive intervention transitional 
108.46  employment training project which 
108.47  serves TANF-eligible recipients and 
108.48  which moves refugee and immigrant 
108.49  welfare recipients unto unsubsidized 
108.50  employment and leads to economic 
108.51  self-sufficiency.  This is a one-time 
108.52  appropriation. 
108.53  (b) $500,000 in fiscal year 2001 is for 
108.54  nontraditional career assistance and 
108.55  training programs under Minnesota 
108.56  Statutes, section 256K.30, subdivision 
108.57  4.  This is a one-time appropriation. 
108.58  (c) $18,680,000 is for local 
108.59  intervention grants for 
108.60  self-sufficiency program under 
109.1   Minnesota Statutes, section 256J.625.  
109.2   For fiscal years 2002 and 2003 the 
109.3   commissioner of finance shall ensure 
109.4   that the base level funding for the 
109.5   local intervention grants program is 
109.6   $27,180,000 each year. 
109.7   (3) Of the amounts in clause (2), 
109.8   paragraph (c) for local intervention 
109.9   grants, $7,000,000 in fiscal year 2001 
109.10  shall be transferred to the 
109.11  commissioner of health for distribution 
109.12  to county boards according to the 
109.13  formula in Minnesota Statutes, section 
109.14  256J.625, subdivision 3, to be used by 
109.15  county public health boards to serve 
109.16  families with incomes at or below 200 
109.17  percent of the federal poverty 
109.18  guidelines, in the manner specified by 
109.19  Minnesota Statutes, section 145A.16, 
109.20  subdivision 3, clauses (2) through 
109.21  (6).  Training, evaluation and 
109.22  technical assistance shall be provided 
109.23  in accordance with Minnesota Statutes, 
109.24  section 145A.16, subdivisions 5 to 7.  
109.25  For fiscal years 2002 and 2003 the 
109.26  commissioner of finance shall ensure 
109.27  that the base level funding for this 
109.28  activity is $7,000,000 each year. 
109.29  (4) Of the amounts in clause (1), 
109.30  $250,000 in fiscal year 2001 is 
109.31  appropriated to the commissioner to 
109.32  contract with the board of trustees of 
109.33  the Minnesota state colleges and 
109.34  universities to provide tuition waivers 
109.35  to employees of health care and human 
109.36  services providers located in the state 
109.37  that are members of qualifying 
109.38  consortia operating under Minnesota 
109.39  Statutes, sections 116L.10 to 116L.15. 
109.40  (5) Of the amounts in clause (1), 
109.41  $320,000 in fiscal year 2001 is for 
109.42  training job counselors about the MFIP 
109.43  program.  For fiscal years 2002 and 
109.44  2003 the commissioner of finance shall 
109.45  ensure that the base level funding for 
109.46  employment services includes $320,000 
109.47  each year for this activity.  The 
109.48  appropriations in this clause shall not 
109.49  become part of the base for the 
109.50  2004-2005 biennium. 
109.51  (6) Of the amounts in clause (1), 
109.52  $1,000,000 in fiscal year 2001 is for 
109.53  out-of-wedlock pregnancy prevention 
109.54  funds to serve children in 
109.55  TANF-eligible families under Minnesota 
109.56  Statutes, section 256K.35. For fiscal 
109.57  years 2002 and 2003 the commissioner of 
109.58  finance shall ensure that the base 
109.59  level funding for this program is 
109.60  $1,000,000 each year.  The 
109.61  appropriations in this clause shall not 
109.62  become part of the base for the 
109.63  2004-2005 biennium. 
109.64  (7) Of the amounts in clause (1), 
109.65  $1,000,000 in fiscal year 2001 is to 
109.66  provide services to TANF-eligible 
110.1   families who are participating in the 
110.2   supportive housing and managed care 
110.3   pilot project under Minnesota Statutes, 
110.4   section 256K.25.  For fiscal years 2002 
110.5   and 2003 the commissioner of finance 
110.6   shall ensure that the base level 
110.7   funding for this project is $1,000,000 
110.8   each year.  The appropriations in this 
110.9   clause shall not become part of the 
110.10  base for this project for the 2004-2005 
110.11  biennium. 
110.12  [TANF TRANSFER TO SOCIAL SERVICES.] 
110.13  $7,500,000 is transferred from the 
110.14  state's federal TANF block grant to the 
110.15  state's federal Title XX block grant in 
110.16  fiscal year 2001 and in fiscal year 
110.17  2002, for purposes of increasing 
110.18  services for families with children 
110.19  whose incomes are at or below 200 
110.20  percent of the federal poverty 
110.21  guidelines.  Notwithstanding section 6, 
110.22  this paragraph expires June 30, 2002. 
110.23  [TANF MOE.] (a) In order to meet the 
110.24  basic maintenance of effort (MOE) 
110.25  requirements of the TANF block grant 
110.26  specified under United States Code, 
110.27  title 42, section 609(a)(7), the 
110.28  commissioner may only report nonfederal 
110.29  money expended for allowable activities 
110.30  listed in the following clauses as TANF 
110.31  MOE expenditures: 
110.32  (1) MFIP cash and food assistance 
110.33  benefits under Minnesota Statutes, 
110.34  chapter 256J; 
110.35  (2) the child care assistance programs 
110.36  under Minnesota Statutes, sections 
110.37  119B.03 and 119B.05, and county child 
110.38  care administrative costs under 
110.39  Minnesota Statutes, section 119B.15; 
110.40  (3) state and county MFIP 
110.41  administrative costs under Minnesota 
110.42  Statutes, chapters 256J and 256K; 
110.43  (4) state, county, and tribal MFIP 
110.44  employment services under Minnesota 
110.45  Statutes, chapters 256J and 256K; and 
110.46  (5) expenditures made on behalf of 
110.47  noncitizen MFIP recipients who qualify 
110.48  for the medical assistance without 
110.49  federal financial participation program 
110.50  under Minnesota Statutes, section 
110.51  256B.06, subdivision 4, paragraphs (d), 
110.52  (e), and (j). 
110.53  (b) The commissioner shall ensure that 
110.54  sufficient qualified nonfederal 
110.55  expenditures are made each year to meet 
110.56  the state's TANF MOE requirements.  For 
110.57  the activities listed in paragraph (a), 
110.58  clauses (2) to (6), the commissioner 
110.59  may only report expenditures that are 
110.60  excluded from the definition of 
110.61  assistance under Code of Federal 
110.62  Regulations, title 45, section 260.31.  
110.63  If nonfederal expenditures for the 
111.1   programs and purposes listed in 
111.2   paragraph (a) are insufficient to meet 
111.3   the state's TANF MOE requirements, the 
111.4   commissioner shall recommend additional 
111.5   allowable sources of nonfederal 
111.6   expenditures to the legislature, if the 
111.7   legislature is or will be in session to 
111.8   take action to specify additional 
111.9   sources of nonfederal expenditures for 
111.10  TANF MOE before a federal penalty is 
111.11  imposed.  The commissioner shall 
111.12  otherwise provide notice to the 
111.13  legislative commission on planning and 
111.14  fiscal policy under paragraph (d). 
111.15  (c) If the commissioner uses authority 
111.16  granted under Laws 1999, chapter 245, 
111.17  article 1, section 10, or similar 
111.18  authority granted by a subsequent 
111.19  legislature, to meet the state's TANF 
111.20  MOE requirements in a reporting period, 
111.21  the commissioner shall inform the 
111.22  chairs of the appropriate legislative 
111.23  committees about all transfers made 
111.24  under that authority for this purpose. 
111.25  (d) If the commissioner determines that 
111.26  nonfederal expenditures for the 
111.27  programs under Minnesota Statutes, 
111.28  section 256J.025, are insufficient to 
111.29  meet TANF MOE expenditure requirements, 
111.30  and if the legislature is not or will 
111.31  not be in session to take timely action 
111.32  to avoid a federal penalty, the 
111.33  commissioner may report nonfederal 
111.34  expenditures from other allowable 
111.35  sources as TANF MOE expenditures after 
111.36  the requirements of this paragraph are 
111.37  met. 
111.38  The commissioner may report nonfederal 
111.39  expenditures in addition to those 
111.40  specified under paragraph (a) as 
111.41  nonfederal TANF MOE expenditures, but 
111.42  only ten days after the commissioner of 
111.43  finance has first submitted the 
111.44  commissioner's recommendations for 
111.45  additional allowable sources of 
111.46  nonfederal TANF MOE expenditures to the 
111.47  members of the legislative commission 
111.48  on planning and fiscal policy for their 
111.49  review. 
111.50  (e) The commissioner of finance shall 
111.51  not incorporate any changes in federal 
111.52  TANF expenditures or nonfederal 
111.53  expenditures for TANF MOE that may 
111.54  result from reporting additional 
111.55  allowable sources of nonfederal TANF 
111.56  MOE expenditures under the interim 
111.57  procedures in paragraph (d) into the 
111.58  February or November forecasts required 
111.59  under Minnesota Statutes, section 
111.60  16A.103, unless the commissioner of 
111.61  finance has approved the additional 
111.62  sources of expenditures under paragraph 
111.63  (d). 
111.64  (f) The provisions of paragraphs (a) to 
111.65  (e) supersede any contrary provisions 
111.66  in Laws 1999, chapter 245, article 1, 
112.1   section 2, subdivision 10. 
112.2   (g) The provisions of Minnesota 
112.3   Statutes, section 256.011, subdivision 
112.4   3, which require that federal grants or 
112.5   aids secured or obtained under that 
112.6   subdivision be used to reduce any 
112.7   direct appropriations provided by law 
112.8   do not apply if the grants or aids are 
112.9   federal TANF funds. 
112.10  (h) Notwithstanding section 6 of this 
112.11  article, paragraphs (a) to (g) expire 
112.12  June 30, 2003. 
112.13  (i) Paragraphs (a) to (h) are effective 
112.14  the day following final enactment. 
112.15  (a) Assistance to Families Grants
112.16       9,628,000     (2,305,000)                
112.17  (b) Work Grants
112.18          -0-          (250,000)
112.19  (c) AFDC and Other Assistance
112.20      20,000,000     30,734,000 
112.21  [TRANSFERS TO MINNESOTA HOUSING FINANCE 
112.22  AGENCY.] (a) By June 30, 2001, the 
112.23  commissioner shall transfer $50,000,000 
112.24  of the general funds appropriated under 
112.25  this paragraph to the Minnesota housing 
112.26  finance agency for transfer to the 
112.27  housing development fund.  The program 
112.28  funded by this transfer shall be known 
112.29  as the "Bruce F. Vento Year 2000 
112.30  Affordable Housing Program." Up to 
112.31  $15,000,000 may be transferred in 
112.32  fiscal year 2000. 
112.33  (b) Of the funds transferred in 
112.34  paragraph (a), $5,000,000 in fiscal 
112.35  year 2001 and $15,000,000 in fiscal 
112.36  year 2002 is for a loan to Habitat for 
112.37  Humanity of Minnesota, Inc.  The loan 
112.38  shall be an interest-free deferred 
112.39  loan.  The loan shall become due and 
112.40  payable in the event and to the extent 
112.41  that Habitat for Humanity of Minnesota, 
112.42  Inc. does not invest repayments and 
112.43  prepayment of mortgage loans financed 
112.44  with this appropriation in new 
112.45  mortgages for additional homebuyers 
112.46  through Habitat for Humanity of 
112.47  Minnesota, Inc.  To the extent 
112.48  practicable, funding must be allocated 
112.49  to Habitat for Humanity chapters on the 
112.50  basis of the number of MFIP households 
112.51  residing within a chapter's service 
112.52  area compared to the statewide total of 
112.53  MFIP households and on the basis of a 
112.54  chapter's capacity. 
112.55  (c) Of the funds transferred in 
112.56  paragraph (a), $15,000,000 in fiscal 
112.57  year 2001 and $15,000,000 in fiscal 
112.58  year 2002 is for the affordable rental 
112.59  investment fund program under Minnesota 
113.1   Statutes, section 462A.21, subdivision 
113.2   8b.  To the extent practicable, the 
113.3   number of units financed with the 
113.4   appropriation under this paragraph 
113.5   within a city, county, or region shall 
113.6   reflect the number of MFIP households 
113.7   residing within the city, county, or 
113.8   region compared to the statewide total 
113.9   of MFIP households.  This appropriation 
113.10  must be used to finance rental housing 
113.11  units that serve families: 
113.12  (1) receiving MFIP benefits under 
113.13  Minnesota Statutes, section 256J.01, or 
113.14  its successor program; and 
113.15  (2) who have lost eligibility for MFIP 
113.16  due to increased income from employment 
113.17  or due to the collection of child or 
113.18  spousal support under part D of title 
113.19  IV of the Social Security Act. 
113.20  Units produced with this appropriation 
113.21  must remain affordable for a 30-year 
113.22  period. 
113.23  In order to coordinate the availability 
113.24  of housing developed with the 
113.25  appropriation under this paragraph with 
113.26  MFIP families in need of affordable 
113.27  housing, the commissioner of the 
113.28  Minnesota housing finance agency, with 
113.29  the assistance of the commissioner of 
113.30  human services, shall establish 
113.31  cooperative relationships with county 
113.32  agencies as defined in Minnesota 
113.33  Statutes, section 256J.08, local 
113.34  employment and training service 
113.35  providers as defined in Minnesota 
113.36  Statutes, section 256J.49, local social 
113.37  service agencies, or other 
113.38  organizations that provide assistance 
113.39  to MFIP households.  
113.40  The commissioner of the Minnesota 
113.41  housing finance agency shall develop 
113.42  strategies to promote occupancy of the 
113.43  units financed by the appropriation 
113.44  under this paragraph by households most 
113.45  in need of subsidized housing.  The 
113.46  strategies shall include provisions 
113.47  that encourage households to move into 
113.48  homeownership or unsubsidized housing 
113.49  as the household secures stable 
113.50  employment and achieves 
113.51  self-sufficiency.  The commissioner of 
113.52  the Minnesota housing finance agency 
113.53  shall consult with interested parties 
113.54  in developing these strategies.  
113.55  (d) The commissioner of the Minnesota 
113.56  housing finance agency and the 
113.57  commissioner of human services shall 
113.58  jointly prepare and submit a report to 
113.59  the governor and the legislature on the 
113.60  results of the funding provided under 
113.61  this section.  The report shall include:
113.62  (1) information on the number of units 
113.63  produced; 
114.1   (2) the household size and income of 
114.2   the occupants of the units at initial 
114.3   occupancy; and 
114.4   (3) to the extent the information is 
114.5   available, measures related to the 
114.6   occupants' attachment to the workforce 
114.7   and public assistance usage, and number 
114.8   of occupant moves. 
114.9   The report must be submitted annually 
114.10  beginning January 15, 2003. 
114.11  (e) Section 6, sunset of uncodified 
114.12  language, does not apply to paragraphs 
114.13  (a) to (d).  Paragraphs (a) to (d) are 
114.14  effective the day following final 
114.15  enactment. 
114.16  [WORKING FAMILY CREDIT.] (a) On a 
114.17  regular basis, the commissioner of 
114.18  revenue, with the assistance of the 
114.19  commissioner of human services, shall 
114.20  calculate the value of the refundable 
114.21  portion of the Minnesota working family 
114.22  credits provided under Minnesota 
114.23  Statutes, section 290.0671, that 
114.24  qualifies for federal reimbursement 
114.25  from the temporary assistance to needy 
114.26  families block grant.  The commissioner 
114.27  of revenue shall provide the 
114.28  commissioner of human services with 
114.29  such expenditure records and 
114.30  information as are necessary to support 
114.31  draws of federal funds.  The 
114.32  commissioner of human services shall 
114.33  reimburse the commissioner of revenue 
114.34  for the costs of providing the 
114.35  information required by this paragraph. 
114.36  (b) Federal TANF funds, as specified in 
114.37  this paragraph, are appropriated to the 
114.38  commissioner of human services based on 
114.39  calculations under paragraph (a) of 
114.40  working family tax credit expenditures 
114.41  that qualify for reimbursement from the 
114.42  TANF block grant for income tax refunds 
114.43  payable in federal fiscal years 
114.44  beginning October 1, 1999.  The draws 
114.45  of federal TANF funds shall be made on 
114.46  a regular basis based on calculations 
114.47  of credit expenditures by the 
114.48  commissioner of revenue.  Up to the 
114.49  following amounts of federal TANF draws 
114.50  are appropriated to the commissioner of 
114.51  human services to deposit into the 
114.52  general fund:  in fiscal year 2000, 
114.53  $30,957,000; and in fiscal year 2001, 
114.54  $33,895,000. 
114.55  (d) General Assistance
114.56          557,000    (3,134,000)
114.57  (e) Minnesota Supplemental Aid
114.58          324,000       323,000 
114.59  Sec. 3.  COMMISSIONER OF HEALTH 
114.60  Subdivision 1.  Total 
115.1   Appropriation                            -0-          1,040,000
115.2                 Summary by Fund
115.3   General                 -0-         1,040,000
115.4   This appropriation is added to the 
115.5   appropriation in Laws 1999, chapter 
115.6   245, article 1, section 3. 
115.7   The amounts that may be spent from this 
115.8   appropriation for each program are 
115.9   specified in the following subdivisions.
115.10  Subd. 2.  Health Systems
115.11  and Special Populations                  -0-            865,000
115.12                Summary by Fund
115.13  General                 -0-           865,000
115.14  [POISON INFORMATION CENTERS.] Of the 
115.15  general fund appropriation for the 
115.16  fiscal year beginning July 1, 2000, 
115.17  $790,000 is to the commissioner for the 
115.18  operation of poison information centers 
115.19  authorized under Minnesota Statutes, 
115.20  section 145.93.  This is a one-time 
115.21  appropriation. 
115.22  [BASE LEVEL REDUCTION.] For fiscal 
115.23  years 2002 and 2003, the base level 
115.24  appropriation for Minnesota poison 
115.25  information centers under Minnesota 
115.26  Statutes, section 145.93 shall be 
115.27  reduced by $380,000 each year.  Section 
115.28  6, sunset of uncodified language, does 
115.29  not apply to this provision. 
115.30  [FUNERAL AND PRENEED COMPLAINT 
115.31  RESPONSES.] (a) Of this appropriation, 
115.32  $75,000 in fiscal year 2001 is to the 
115.33  commissioner for the purposes of 
115.34  responding to complaints as required 
115.35  under Minnesota Statutes, chapter 
115.36  149A.  To the extent that resources are 
115.37  available, the commissioner shall also 
115.38  provide information and technical 
115.39  assistance to the organizations 
115.40  regulated under that chapter.  This 
115.41  appropriation shall not become part of 
115.42  base level funding for the 2002-2003 
115.43  biennium. 
115.44  (b) The commissioner shall make 
115.45  recommendations by January 15, 2001, to 
115.46  the chairs of the senate health and 
115.47  family security budget division and the 
115.48  house health and human services finance 
115.49  committee on whether there is a need 
115.50  for additional funding for ongoing 
115.51  implementation of the regulatory 
115.52  provisions of Minnesota Statutes, 
115.53  chapter 149A, and if so, proposals for 
115.54  an alternative funding source to the 
115.55  general fund. 
115.56  Subd. 3.  Health Protection             -0-            175,000
115.57                Summary by Fund
116.1   General                 -0-           175,000
116.2   [SEXUALLY TRANSMITTED INFECTIONS.] Of 
116.3   the general fund appropriation for the 
116.4   fiscal year beginning July 1, 2000, 
116.5   $175,000 is to the commissioner to 
116.6   expand access to free screening and 
116.7   testing for sexually transmitted 
116.8   infections.  The appropriation must be 
116.9   used in accordance with Minnesota 
116.10  Statutes, section 144.065.  This is a 
116.11  one-time appropriation and shall not 
116.12  become part of base-level funding for 
116.13  the 2002-2003 biennium. 
116.14  Sec. 4.  HEALTH-RELATED BOARDS 
116.15  Subdivision 1.  Total       
116.16  Appropriation                            150,000        -0-     
116.17  This appropriation is added to the 
116.18  appropriation in Laws 1999, chapter 
116.19  205, article 1, section 5. 
116.20  The appropriations in this section are 
116.21  from the state government special 
116.22  revenue fund. 
116.23  [NO SPENDING IN EXCESS OF REVENUES.] 
116.24  The commissioner of finance shall not 
116.25  permit the allotment, encumbrance, or 
116.26  expenditure of money appropriated in 
116.27  this section in excess of the 
116.28  anticipated biennial revenues or 
116.29  accumulated surplus revenues from fees 
116.30  collected by the boards.  Neither this 
116.31  provision nor Minnesota Statutes, 
116.32  section 214.06, applies to transfers 
116.33  from the general contingent account. 
116.34  Subd. 2.  BOARD OF PSYCHOLOGY            150,000        -0-    
116.35  [LEGAL COSTS.] Of this appropriation, 
116.36  $150,000 for the fiscal year beginning 
116.37  July 1, 1999, is to the board to pay 
116.38  for extraordinary legal costs.  This is 
116.39  a one-time appropriation and shall not 
116.40  become part of base-level funding for 
116.41  the 2002-2003 biennium. 
116.42  Sec. 5.  CARRYOVER LIMITATION 
116.43  None of the appropriations in articles 
116.44  8 to 11 which are allowed to be carried 
116.45  forward from fiscal year 2000 to fiscal 
116.46  year 2001 shall become part of the base 
116.47  level funding for the 2002-2003 
116.48  biennial budget, unless specifically 
116.49  directed by the legislature. 
116.50  Sec. 6.  SUNSET OF UNCODIFIED LANGUAGE 
116.51  All uncodified language contained in 
116.52  this article expires on June 30, 2001, 
116.53  unless a different expiration date is 
116.54  explicit. 
116.55     Sec. 7.  [EFFECTIVE DATE.] 
116.56     The appropriations and reductions for fiscal year 2000 in 
117.1   this article are effective the day following final enactment. 
117.2                              ARTICLE 9 
117.3                             HEALTH CARE 
117.4      Section 1.  Minnesota Statutes 1998, section 144.551, 
117.5   subdivision 1, is amended to read: 
117.6      Subdivision 1.  [RESTRICTED CONSTRUCTION OR MODIFICATION.] 
117.7   (a) The following construction or modification may not be 
117.8   commenced:  
117.9      (1) any erection, building, alteration, reconstruction, 
117.10  modernization, improvement, extension, lease, or other 
117.11  acquisition by or on behalf of a hospital that increases the bed 
117.12  capacity of a hospital, relocates hospital beds from one 
117.13  physical facility, complex, or site to another, or otherwise 
117.14  results in an increase or redistribution of hospital beds within 
117.15  the state; and 
117.16     (2) the establishment of a new hospital.  
117.17     (b) This section does not apply to:  
117.18     (1) construction or relocation within a county by a 
117.19  hospital, clinic, or other health care facility that is a 
117.20  national referral center engaged in substantial programs of 
117.21  patient care, medical research, and medical education meeting 
117.22  state and national needs that receives more than 40 percent of 
117.23  its patients from outside the state of Minnesota; 
117.24     (2) a project for construction or modification for which a 
117.25  health care facility held an approved certificate of need on May 
117.26  1, 1984, regardless of the date of expiration of the 
117.27  certificate; 
117.28     (3) a project for which a certificate of need was denied 
117.29  before July 1, 1990, if a timely appeal results in an order 
117.30  reversing the denial; 
117.31     (4) a project exempted from certificate of need 
117.32  requirements by Laws 1981, chapter 200, section 2; 
117.33     (5) a project involving consolidation of pediatric 
117.34  specialty hospital services within the Minneapolis-St. Paul 
117.35  metropolitan area that would not result in a net increase in the 
117.36  number of pediatric specialty hospital beds among the hospitals 
118.1   being consolidated; 
118.2      (6) a project involving the temporary relocation of 
118.3   pediatric-orthopedic hospital beds to an existing licensed 
118.4   hospital that will allow for the reconstruction of a new 
118.5   philanthropic, pediatric-orthopedic hospital on an existing site 
118.6   and that will not result in a net increase in the number of 
118.7   hospital beds.  Upon completion of the reconstruction, the 
118.8   licenses of both hospitals must be reinstated at the capacity 
118.9   that existed on each site before the relocation; 
118.10     (7) the relocation or redistribution of hospital beds 
118.11  within a hospital building or identifiable complex of buildings 
118.12  provided the relocation or redistribution does not result in: 
118.13  (i) an increase in the overall bed capacity at that site; (ii) 
118.14  relocation of hospital beds from one physical site or complex to 
118.15  another; or (iii) redistribution of hospital beds within the 
118.16  state or a region of the state; 
118.17     (8) relocation or redistribution of hospital beds within a 
118.18  hospital corporate system that involves the transfer of beds 
118.19  from a closed facility site or complex to an existing site or 
118.20  complex provided that:  (i) no more than 50 percent of the 
118.21  capacity of the closed facility is transferred; (ii) the 
118.22  capacity of the site or complex to which the beds are 
118.23  transferred does not increase by more than 50 percent; (iii) the 
118.24  beds are not transferred outside of a federal health systems 
118.25  agency boundary in place on July 1, 1983; and (iv) the 
118.26  relocation or redistribution does not involve the construction 
118.27  of a new hospital building; 
118.28     (9) a construction project involving up to 35 new beds in a 
118.29  psychiatric hospital in Rice county that primarily serves 
118.30  adolescents and that receives more than 70 percent of its 
118.31  patients from outside the state of Minnesota; 
118.32     (10) a project to replace a hospital or hospitals with a 
118.33  combined licensed capacity of 130 beds or less if:  (i) the new 
118.34  hospital site is located within five miles of the current site; 
118.35  and (ii) the total licensed capacity of the replacement 
118.36  hospital, either at the time of construction of the initial 
119.1   building or as the result of future expansion, will not exceed 
119.2   70 licensed hospital beds, or the combined licensed capacity of 
119.3   the hospitals, whichever is less; 
119.4      (11) the relocation of licensed hospital beds from an 
119.5   existing state facility operated by the commissioner of human 
119.6   services to a new or existing facility, building, or complex 
119.7   operated by the commissioner of human services; from one 
119.8   regional treatment center site to another; or from one building 
119.9   or site to a new or existing building or site on the same 
119.10  campus; or 
119.11     (12) the construction or relocation of hospital beds 
119.12  operated by a hospital having a statutory obligation to provide 
119.13  hospital and medical services for the indigent that does not 
119.14  result in a net increase in the number of hospital beds; or 
119.15     (13) a construction project involving the addition of up to 
119.16  31 new beds in an existing nonfederal hospital in Beltrami 
119.17  county. 
119.18     Sec. 2.  Minnesota Statutes 1998, section 144A.071, 
119.19  subdivision 4a, is amended to read: 
119.20     Subd. 4a.  [EXCEPTIONS FOR REPLACEMENT BEDS.] It is in the 
119.21  best interest of the state to ensure that nursing homes and 
119.22  boarding care homes continue to meet the physical plant 
119.23  licensing and certification requirements by permitting certain 
119.24  construction projects.  Facilities should be maintained in 
119.25  condition to satisfy the physical and emotional needs of 
119.26  residents while allowing the state to maintain control over 
119.27  nursing home expenditure growth. 
119.28     The commissioner of health in coordination with the 
119.29  commissioner of human services, may approve the renovation, 
119.30  replacement, upgrading, or relocation of a nursing home or 
119.31  boarding care home, under the following conditions: 
119.32     (a) to license or certify beds in a new facility 
119.33  constructed to replace a facility or to make repairs in an 
119.34  existing facility that was destroyed or damaged after June 30, 
119.35  1987, by fire, lightning, or other hazard provided:  
119.36     (i) destruction was not caused by the intentional act of or 
120.1   at the direction of a controlling person of the facility; 
120.2      (ii) at the time the facility was destroyed or damaged the 
120.3   controlling persons of the facility maintained insurance 
120.4   coverage for the type of hazard that occurred in an amount that 
120.5   a reasonable person would conclude was adequate; 
120.6      (iii) the net proceeds from an insurance settlement for the 
120.7   damages caused by the hazard are applied to the cost of the new 
120.8   facility or repairs; 
120.9      (iv) the new facility is constructed on the same site as 
120.10  the destroyed facility or on another site subject to the 
120.11  restrictions in section 144A.073, subdivision 5; 
120.12     (v) the number of licensed and certified beds in the new 
120.13  facility does not exceed the number of licensed and certified 
120.14  beds in the destroyed facility; and 
120.15     (vi) the commissioner determines that the replacement beds 
120.16  are needed to prevent an inadequate supply of beds. 
120.17  Project construction costs incurred for repairs authorized under 
120.18  this clause shall not be considered in the dollar threshold 
120.19  amount defined in subdivision 2; 
120.20     (b) to license or certify beds that are moved from one 
120.21  location to another within a nursing home facility, provided the 
120.22  total costs of remodeling performed in conjunction with the 
120.23  relocation of beds does not exceed $750,000; 
120.24     (c) to license or certify beds in a project recommended for 
120.25  approval under section 144A.073; 
120.26     (d) to license or certify beds that are moved from an 
120.27  existing state nursing home to a different state facility, 
120.28  provided there is no net increase in the number of state nursing 
120.29  home beds; 
120.30     (e) to certify and license as nursing home beds boarding 
120.31  care beds in a certified boarding care facility if the beds meet 
120.32  the standards for nursing home licensure, or in a facility that 
120.33  was granted an exception to the moratorium under section 
120.34  144A.073, and if the cost of any remodeling of the facility does 
120.35  not exceed $750,000.  If boarding care beds are licensed as 
120.36  nursing home beds, the number of boarding care beds in the 
121.1   facility must not increase beyond the number remaining at the 
121.2   time of the upgrade in licensure.  The provisions contained in 
121.3   section 144A.073 regarding the upgrading of the facilities do 
121.4   not apply to facilities that satisfy these requirements; 
121.5      (f) to license and certify up to 40 beds transferred from 
121.6   an existing facility owned and operated by the Amherst H. Wilder 
121.7   Foundation in the city of St. Paul to a new unit at the same 
121.8   location as the existing facility that will serve persons with 
121.9   Alzheimer's disease and other related disorders.  The transfer 
121.10  of beds may occur gradually or in stages, provided the total 
121.11  number of beds transferred does not exceed 40.  At the time of 
121.12  licensure and certification of a bed or beds in the new unit, 
121.13  the commissioner of health shall delicense and decertify the 
121.14  same number of beds in the existing facility.  As a condition of 
121.15  receiving a license or certification under this clause, the 
121.16  facility must make a written commitment to the commissioner of 
121.17  human services that it will not seek to receive an increase in 
121.18  its property-related payment rate as a result of the transfers 
121.19  allowed under this paragraph; 
121.20     (g) to license and certify nursing home beds to replace 
121.21  currently licensed and certified boarding care beds which may be 
121.22  located either in a remodeled or renovated boarding care or 
121.23  nursing home facility or in a remodeled, renovated, newly 
121.24  constructed, or replacement nursing home facility within the 
121.25  identifiable complex of health care facilities in which the 
121.26  currently licensed boarding care beds are presently located, 
121.27  provided that the number of boarding care beds in the facility 
121.28  or complex are decreased by the number to be licensed as nursing 
121.29  home beds and further provided that, if the total costs of new 
121.30  construction, replacement, remodeling, or renovation exceed ten 
121.31  percent of the appraised value of the facility or $200,000, 
121.32  whichever is less, the facility makes a written commitment to 
121.33  the commissioner of human services that it will not seek to 
121.34  receive an increase in its property-related payment rate by 
121.35  reason of the new construction, replacement, remodeling, or 
121.36  renovation.  The provisions contained in section 144A.073 
122.1   regarding the upgrading of facilities do not apply to facilities 
122.2   that satisfy these requirements; 
122.3      (h) to license as a nursing home and certify as a nursing 
122.4   facility a facility that is licensed as a boarding care facility 
122.5   but not certified under the medical assistance program, but only 
122.6   if the commissioner of human services certifies to the 
122.7   commissioner of health that licensing the facility as a nursing 
122.8   home and certifying the facility as a nursing facility will 
122.9   result in a net annual savings to the state general fund of 
122.10  $200,000 or more; 
122.11     (i) to certify, after September 30, 1992, and prior to July 
122.12  1, 1993, existing nursing home beds in a facility that was 
122.13  licensed and in operation prior to January 1, 1992; 
122.14     (j) to license and certify new nursing home beds to replace 
122.15  beds in a facility acquired by the Minneapolis community 
122.16  development agency as part of redevelopment activities in a city 
122.17  of the first class, provided the new facility is located within 
122.18  three miles of the site of the old facility.  Operating and 
122.19  property costs for the new facility must be determined and 
122.20  allowed under section 256B.431 or 256B.434; 
122.21     (k) to license and certify up to 20 new nursing home beds 
122.22  in a community-operated hospital and attached convalescent and 
122.23  nursing care facility with 40 beds on April 21, 1991, that 
122.24  suspended operation of the hospital in April 1986.  The 
122.25  commissioner of human services shall provide the facility with 
122.26  the same per diem property-related payment rate for each 
122.27  additional licensed and certified bed as it will receive for its 
122.28  existing 40 beds; 
122.29     (l) to license or certify beds in renovation, replacement, 
122.30  or upgrading projects as defined in section 144A.073, 
122.31  subdivision 1, so long as the cumulative total costs of the 
122.32  facility's remodeling projects do not exceed $750,000; 
122.33     (m) to license and certify beds that are moved from one 
122.34  location to another for the purposes of converting up to five 
122.35  four-bed wards to single or double occupancy rooms in a nursing 
122.36  home that, as of January 1, 1993, was county-owned and had a 
123.1   licensed capacity of 115 beds; 
123.2      (n) to allow a facility that on April 16, 1993, was a 
123.3   106-bed licensed and certified nursing facility located in 
123.4   Minneapolis to layaway all of its licensed and certified nursing 
123.5   home beds.  These beds may be relicensed and recertified in a 
123.6   newly-constructed teaching nursing home facility affiliated with 
123.7   a teaching hospital upon approval by the legislature.  The 
123.8   proposal must be developed in consultation with the interagency 
123.9   committee on long-term care planning.  The beds on layaway 
123.10  status shall have the same status as voluntarily delicensed and 
123.11  decertified beds, except that beds on layaway status remain 
123.12  subject to the surcharge in section 256.9657.  This layaway 
123.13  provision expires July 1, 1998; 
123.14     (o) to allow a project which will be completed in 
123.15  conjunction with an approved moratorium exception project for a 
123.16  nursing home in southern Cass county and which is directly 
123.17  related to that portion of the facility that must be repaired, 
123.18  renovated, or replaced, to correct an emergency plumbing problem 
123.19  for which a state correction order has been issued and which 
123.20  must be corrected by August 31, 1993; 
123.21     (p) to allow a facility that on April 16, 1993, was a 
123.22  368-bed licensed and certified nursing facility located in 
123.23  Minneapolis to layaway, upon 30 days prior written notice to the 
123.24  commissioner, up to 30 of the facility's licensed and certified 
123.25  beds by converting three-bed wards to single or double 
123.26  occupancy.  Beds on layaway status shall have the same status as 
123.27  voluntarily delicensed and decertified beds except that beds on 
123.28  layaway status remain subject to the surcharge in section 
123.29  256.9657, remain subject to the license application and renewal 
123.30  fees under section 144A.07 and shall be subject to a $100 per 
123.31  bed reactivation fee.  In addition, at any time within three 
123.32  years of the effective date of the layaway, the beds on layaway 
123.33  status may be: 
123.34     (1) relicensed and recertified upon relocation and 
123.35  reactivation of some or all of the beds to an existing licensed 
123.36  and certified facility or facilities located in Pine River, 
124.1   Brainerd, or International Falls; provided that the total 
124.2   project construction costs related to the relocation of beds 
124.3   from layaway status for any facility receiving relocated beds 
124.4   may not exceed the dollar threshold provided in subdivision 2 
124.5   unless the construction project has been approved through the 
124.6   moratorium exception process under section 144A.073; 
124.7      (2) relicensed and recertified, upon reactivation of some 
124.8   or all of the beds within the facility which placed the beds in 
124.9   layaway status, if the commissioner has determined a need for 
124.10  the reactivation of the beds on layaway status. 
124.11     The property-related payment rate of a facility placing 
124.12  beds on layaway status must be adjusted by the incremental 
124.13  change in its rental per diem after recalculating the rental per 
124.14  diem as provided in section 256B.431, subdivision 3a, paragraph 
124.15  (d).  The property-related payment rate for a facility 
124.16  relicensing and recertifying beds from layaway status must be 
124.17  adjusted by the incremental change in its rental per diem after 
124.18  recalculating its rental per diem using the number of beds after 
124.19  the relicensing to establish the facility's capacity day 
124.20  divisor, which shall be effective the first day of the month 
124.21  following the month in which the relicensing and recertification 
124.22  became effective.  Any beds remaining on layaway status more 
124.23  than three years after the date the layaway status became 
124.24  effective must be removed from layaway status and immediately 
124.25  delicensed and decertified; 
124.26     (q) to license and certify beds in a renovation and 
124.27  remodeling project to convert 12 four-bed wards into 24 two-bed 
124.28  rooms, expand space, and add improvements in a nursing home 
124.29  that, as of January 1, 1994, met the following conditions:  the 
124.30  nursing home was located in Ramsey county; had a licensed 
124.31  capacity of 154 beds; and had been ranked among the top 15 
124.32  applicants by the 1993 moratorium exceptions advisory review 
124.33  panel.  The total project construction cost estimate for this 
124.34  project must not exceed the cost estimate submitted in 
124.35  connection with the 1993 moratorium exception process; 
124.36     (r) to license and certify up to 117 beds that are 
125.1   relocated from a licensed and certified 138-bed nursing facility 
125.2   located in St. Paul to a hospital with 130 licensed hospital 
125.3   beds located in South St. Paul, provided that the nursing 
125.4   facility and hospital are owned by the same or a related 
125.5   organization and that prior to the date the relocation is 
125.6   completed the hospital ceases operation of its inpatient 
125.7   hospital services at that hospital.  After relocation, the 
125.8   nursing facility's status under section 256B.431, subdivision 
125.9   2j, shall be the same as it was prior to relocation.  The 
125.10  nursing facility's property-related payment rate resulting from 
125.11  the project authorized in this paragraph shall become effective 
125.12  no earlier than April 1, 1996.  For purposes of calculating the 
125.13  incremental change in the facility's rental per diem resulting 
125.14  from this project, the allowable appraised value of the nursing 
125.15  facility portion of the existing health care facility physical 
125.16  plant prior to the renovation and relocation may not exceed 
125.17  $2,490,000; 
125.18     (s) to license and certify two beds in a facility to 
125.19  replace beds that were voluntarily delicensed and decertified on 
125.20  June 28, 1991; 
125.21     (t) to allow 16 licensed and certified beds located on July 
125.22  1, 1994, in a 142-bed nursing home and 21-bed boarding care home 
125.23  facility in Minneapolis, notwithstanding the licensure and 
125.24  certification after July 1, 1995, of the Minneapolis facility as 
125.25  a 147-bed nursing home facility after completion of a 
125.26  construction project approved in 1993 under section 144A.073, to 
125.27  be laid away upon 30 days' prior written notice to the 
125.28  commissioner.  Beds on layaway status shall have the same status 
125.29  as voluntarily delicensed or decertified beds except that they 
125.30  shall remain subject to the surcharge in section 256.9657.  The 
125.31  16 beds on layaway status may be relicensed as nursing home beds 
125.32  and recertified at any time within five years of the effective 
125.33  date of the layaway upon relocation of some or all of the beds 
125.34  to a licensed and certified facility located in Watertown, 
125.35  provided that the total project construction costs related to 
125.36  the relocation of beds from layaway status for the Watertown 
126.1   facility may not exceed the dollar threshold provided in 
126.2   subdivision 2 unless the construction project has been approved 
126.3   through the moratorium exception process under section 144A.073. 
126.4      The property-related payment rate of the facility placing 
126.5   beds on layaway status must be adjusted by the incremental 
126.6   change in its rental per diem after recalculating the rental per 
126.7   diem as provided in section 256B.431, subdivision 3a, paragraph 
126.8   (d).  The property-related payment rate for the facility 
126.9   relicensing and recertifying beds from layaway status must be 
126.10  adjusted by the incremental change in its rental per diem after 
126.11  recalculating its rental per diem using the number of beds after 
126.12  the relicensing to establish the facility's capacity day 
126.13  divisor, which shall be effective the first day of the month 
126.14  following the month in which the relicensing and recertification 
126.15  became effective.  Any beds remaining on layaway status more 
126.16  than five years after the date the layaway status became 
126.17  effective must be removed from layaway status and immediately 
126.18  delicensed and decertified; 
126.19     (u) to license and certify beds that are moved within an 
126.20  existing area of a facility or to a newly constructed addition 
126.21  which is built for the purpose of eliminating three- and 
126.22  four-bed rooms and adding space for dining, lounge areas, 
126.23  bathing rooms, and ancillary service areas in a nursing home 
126.24  that, as of January 1, 1995, was located in Fridley and had a 
126.25  licensed capacity of 129 beds; 
126.26     (v) to relocate 36 beds in Crow Wing county and four beds 
126.27  from Hennepin county to a 160-bed facility in Crow Wing county, 
126.28  provided all the affected beds are under common ownership; 
126.29     (w) to license and certify a total replacement project of 
126.30  up to 49 beds located in Norman county that are relocated from a 
126.31  nursing home destroyed by flood and whose residents were 
126.32  relocated to other nursing homes.  The operating cost payment 
126.33  rates for the new nursing facility shall be determined based on 
126.34  the interim and settle-up payment provisions of Minnesota Rules, 
126.35  part 9549.0057, and the reimbursement provisions of section 
126.36  256B.431, except that subdivision 26, paragraphs (a) and (b), 
127.1   shall not apply until the second rate year after the settle-up 
127.2   cost report is filed.  Property-related reimbursement rates 
127.3   shall be determined under section 256B.431, taking into account 
127.4   any federal or state flood-related loans or grants provided to 
127.5   the facility; 
127.6      (x) to license and certify a total replacement project of 
127.7   up to 129 beds located in Polk county that are relocated from a 
127.8   nursing home destroyed by flood and whose residents were 
127.9   relocated to other nursing homes.  The operating cost payment 
127.10  rates for the new nursing facility shall be determined based on 
127.11  the interim and settle-up payment provisions of Minnesota Rules, 
127.12  part 9549.0057, and the reimbursement provisions of section 
127.13  256B.431, except that subdivision 26, paragraphs (a) and (b), 
127.14  shall not apply until the second rate year after the settle-up 
127.15  cost report is filed.  Property-related reimbursement rates 
127.16  shall be determined under section 256B.431, taking into account 
127.17  any federal or state flood-related loans or grants provided to 
127.18  the facility; 
127.19     (y) to license and certify beds in a renovation and 
127.20  remodeling project to convert 13 three-bed wards into 13 two-bed 
127.21  rooms and 13 single-bed rooms, expand space, and add 
127.22  improvements in a nursing home that, as of January 1, 1994, met 
127.23  the following conditions:  the nursing home was located in 
127.24  Ramsey county, was not owned by a hospital corporation, had a 
127.25  licensed capacity of 64 beds, and had been ranked among the top 
127.26  15 applicants by the 1993 moratorium exceptions advisory review 
127.27  panel.  The total project construction cost estimate for this 
127.28  project must not exceed the cost estimate submitted in 
127.29  connection with the 1993 moratorium exception process; 
127.30     (z) to license and certify up to 150 nursing home beds to 
127.31  replace an existing 285 bed nursing facility located in St. 
127.32  Paul.  The replacement project shall include both the renovation 
127.33  of existing buildings and the construction of new facilities at 
127.34  the existing site.  The reduction in the licensed capacity of 
127.35  the existing facility shall occur during the construction 
127.36  project as beds are taken out of service due to the construction 
128.1   process.  Prior to the start of the construction process, the 
128.2   facility shall provide written information to the commissioner 
128.3   of health describing the process for bed reduction, plans for 
128.4   the relocation of residents, and the estimated construction 
128.5   schedule.  The relocation of residents shall be in accordance 
128.6   with the provisions of law and rule; or 
128.7      (aa) to allow the commissioner of human services to license 
128.8   an additional 36 beds to provide residential services for the 
128.9   physically handicapped under Minnesota Rules, parts 9570.2000 to 
128.10  9570.3400, in a 198-bed nursing home located in Red Wing, 
128.11  provided that the total number of licensed and certified beds at 
128.12  the facility does not increase; 
128.13     (bb) to license and certify a new facility in St. Louis 
128.14  county with 44 beds constructed to replace an existing facility 
128.15  in St. Louis county with 31 beds, which has resident rooms on 
128.16  two separate floors and an antiquated elevator that creates 
128.17  safety concerns for residents and prevents nonambulatory 
128.18  residents from residing on the second floor.  The project shall 
128.19  include the elimination of three- and four-bed rooms; 
128.20     (cc) to license and certify four beds in a 16-bed certified 
128.21  boarding care home in Minneapolis to replace beds that were 
128.22  voluntarily delicensed and decertified on or before March 31, 
128.23  1992.  The licensure and certification is conditional upon the 
128.24  facility periodically assessing and adjusting its resident mix 
128.25  and other factors which may contribute to a potential 
128.26  institution for mental disease declaration.  The commissioner of 
128.27  human services shall retain the authority to audit the facility 
128.28  at any time and shall require the facility to comply with any 
128.29  requirements necessary to prevent an institution for mental 
128.30  disease declaration, including delicensure and decertification 
128.31  of beds, if necessary; or 
128.32     (dd) to license and certify 72 beds in an existing facility 
128.33  in Mille Lacs county with 80 beds as part of a renovation 
128.34  project.  The renovation must include construction of an 
128.35  addition to accommodate ten residents with beginning and 
128.36  midstage dementia in a self-contained living unit; creation of 
129.1   three resident households where dining, activities, and support 
129.2   spaces are located near resident living quarters; designation of 
129.3   four beds for rehabilitation in a self-contained area; 
129.4   designation of 30 private rooms; and other improvements. 
129.5      Sec. 3.  Minnesota Statutes 1998, section 144A.071, is 
129.6   amended by adding a subdivision to read: 
129.7      Subd. 4b.  [LICENSED BEDS ON LAYAWAY STATUS.] A licensed 
129.8   and certified nursing facility may lay away, upon prior written 
129.9   notice to the commissioner of health, up to 50 percent of its 
129.10  licensed and certified beds.  A nursing facility may not 
129.11  discharge a resident in order to lay away a bed.  Notice to the 
129.12  commissioner shall be given 60 days prior to the effective date 
129.13  of the layaway.  Beds on layaway shall have the same status as 
129.14  voluntarily delicensed and decertified beds and shall not be 
129.15  subject to license fees and license surcharge fees.  In 
129.16  addition, beds on layaway may be removed from layaway at any 
129.17  time on or after one year after the effective date of layaway in 
129.18  the facility of origin, with a 60-day notice to the 
129.19  commissioner.  A nursing facility that removes beds from layaway 
129.20  may not place beds on layaway status for one year after the 
129.21  effective date of the removal from layaway.  The commissioner 
129.22  may approve the immediate removal of beds from layaway if 
129.23  necessary to provide access to those nursing home beds to 
129.24  residents relocated from other nursing homes due to emergency 
129.25  situations or closure.  In the event approval is granted, the 
129.26  one-year restriction on placing beds on layaway after a removal 
129.27  of beds from layaway shall not apply.  Beds may remain on 
129.28  layaway for up to five years. 
129.29     Sec. 4.  Minnesota Statutes 1998, section 148B.32, 
129.30  subdivision 1, is amended to read: 
129.31     Subdivision 1.  [UNLICENSED PRACTICE PROHIBITED.] After 
129.32  adoption of rules by the board implementing sections 148B.29 to 
129.33  148B.39, no individual shall engage in marriage and family 
129.34  therapy practice unless that individual holds a valid license 
129.35  issued under sections 148B.29 to 148B.39. 
129.36     Marriage and family therapists may not be reimbursed under 
130.1   medical assistance, chapter 256B, except to the extent such care 
130.2   is reimbursed under section 256B.0625, subdivision 5, or when 
130.3   marriage and family therapists are employed by a managed care 
130.4   organization with a contract to provide mental health care to 
130.5   medical assistance enrollees, and are reimbursed through the 
130.6   managed care organization. 
130.7      Sec. 5.  Minnesota Statutes 1998, section 252.28, is 
130.8   amended by adding a subdivision to read: 
130.9      Subd. 3b.  [OLMSTED COUNTY LICENSING EXEMPTION.] (a) 
130.10  Notwithstanding subdivision 3, the commissioner may license 
130.11  service sites each accommodating up to five residents moving 
130.12  from a 43-bed intermediate care facility for persons with mental 
130.13  retardation or related conditions located in Olmsted county that 
130.14  is closing under section 252.292. 
130.15     (b) Notwithstanding the provisions of any other state law 
130.16  or administrative rule, the rate provisions of section 256I.05, 
130.17  subdivision 1, apply to the exception in this subdivision. 
130.18     Sec. 6.  Minnesota Statutes 1999 Supplement, section 
130.19  256.01, subdivision 2, is amended to read: 
130.20     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
130.21  section 241.021, subdivision 2, the commissioner of human 
130.22  services shall: 
130.23     (1) Administer and supervise all forms of public assistance 
130.24  provided for by state law and other welfare activities or 
130.25  services as are vested in the commissioner.  Administration and 
130.26  supervision of human services activities or services includes, 
130.27  but is not limited to, assuring timely and accurate distribution 
130.28  of benefits, completeness of service, and quality program 
130.29  management.  In addition to administering and supervising human 
130.30  services activities vested by law in the department, the 
130.31  commissioner shall have the authority to: 
130.32     (a) require county agency participation in training and 
130.33  technical assistance programs to promote compliance with 
130.34  statutes, rules, federal laws, regulations, and policies 
130.35  governing human services; 
130.36     (b) monitor, on an ongoing basis, the performance of county 
131.1   agencies in the operation and administration of human services, 
131.2   enforce compliance with statutes, rules, federal laws, 
131.3   regulations, and policies governing welfare services and promote 
131.4   excellence of administration and program operation; 
131.5      (c) develop a quality control program or other monitoring 
131.6   program to review county performance and accuracy of benefit 
131.7   determinations; 
131.8      (d) require county agencies to make an adjustment to the 
131.9   public assistance benefits issued to any individual consistent 
131.10  with federal law and regulation and state law and rule and to 
131.11  issue or recover benefits as appropriate; 
131.12     (e) delay or deny payment of all or part of the state and 
131.13  federal share of benefits and administrative reimbursement 
131.14  according to the procedures set forth in section 256.017; 
131.15     (f) make contracts with and grants to public and private 
131.16  agencies and organizations, both profit and nonprofit, and 
131.17  individuals, using appropriated funds; and 
131.18     (g) enter into contractual agreements with federally 
131.19  recognized Indian tribes with a reservation in Minnesota to the 
131.20  extent necessary for the tribe to operate a federally approved 
131.21  family assistance program or any other program under the 
131.22  supervision of the commissioner.  The commissioner shall consult 
131.23  with the affected county or counties in the contractual 
131.24  agreement negotiations, if the county or counties wish to be 
131.25  included, in order to avoid the duplication of county and tribal 
131.26  assistance program services.  The commissioner may establish 
131.27  necessary accounts for the purposes of receiving and disbursing 
131.28  funds as necessary for the operation of the programs. 
131.29     (2) Inform county agencies, on a timely basis, of changes 
131.30  in statute, rule, federal law, regulation, and policy necessary 
131.31  to county agency administration of the programs. 
131.32     (3) Administer and supervise all child welfare activities; 
131.33  promote the enforcement of laws protecting handicapped, 
131.34  dependent, neglected and delinquent children, and children born 
131.35  to mothers who were not married to the children's fathers at the 
131.36  times of the conception nor at the births of the children; 
132.1   license and supervise child-caring and child-placing agencies 
132.2   and institutions; supervise the care of children in boarding and 
132.3   foster homes or in private institutions; and generally perform 
132.4   all functions relating to the field of child welfare now vested 
132.5   in the state board of control. 
132.6      (4) Administer and supervise all noninstitutional service 
132.7   to handicapped persons, including those who are visually 
132.8   impaired, hearing impaired, or physically impaired or otherwise 
132.9   handicapped.  The commissioner may provide and contract for the 
132.10  care and treatment of qualified indigent children in facilities 
132.11  other than those located and available at state hospitals when 
132.12  it is not feasible to provide the service in state hospitals. 
132.13     (5) Assist and actively cooperate with other departments, 
132.14  agencies and institutions, local, state, and federal, by 
132.15  performing services in conformity with the purposes of Laws 
132.16  1939, chapter 431. 
132.17     (6) Act as the agent of and cooperate with the federal 
132.18  government in matters of mutual concern relative to and in 
132.19  conformity with the provisions of Laws 1939, chapter 431, 
132.20  including the administration of any federal funds granted to the 
132.21  state to aid in the performance of any functions of the 
132.22  commissioner as specified in Laws 1939, chapter 431, and 
132.23  including the promulgation of rules making uniformly available 
132.24  medical care benefits to all recipients of public assistance, at 
132.25  such times as the federal government increases its participation 
132.26  in assistance expenditures for medical care to recipients of 
132.27  public assistance, the cost thereof to be borne in the same 
132.28  proportion as are grants of aid to said recipients. 
132.29     (7) Establish and maintain any administrative units 
132.30  reasonably necessary for the performance of administrative 
132.31  functions common to all divisions of the department. 
132.32     (8) Act as designated guardian of both the estate and the 
132.33  person of all the wards of the state of Minnesota, whether by 
132.34  operation of law or by an order of court, without any further 
132.35  act or proceeding whatever, except as to persons committed as 
132.36  mentally retarded.  For children under the guardianship of the 
133.1   commissioner whose interests would be best served by adoptive 
133.2   placement, the commissioner may contract with a licensed 
133.3   child-placing agency to provide adoption services.  A contract 
133.4   with a licensed child-placing agency must be designed to 
133.5   supplement existing county efforts and may not replace existing 
133.6   county programs, unless the replacement is agreed to by the 
133.7   county board and the appropriate exclusive bargaining 
133.8   representative or the commissioner has evidence that child 
133.9   placements of the county continue to be substantially below that 
133.10  of other counties.  Funds encumbered and obligated under an 
133.11  agreement for a specific child shall remain available until the 
133.12  terms of the agreement are fulfilled or the agreement is 
133.13  terminated. 
133.14     (9) Act as coordinating referral and informational center 
133.15  on requests for service for newly arrived immigrants coming to 
133.16  Minnesota. 
133.17     (10) The specific enumeration of powers and duties as 
133.18  hereinabove set forth shall in no way be construed to be a 
133.19  limitation upon the general transfer of powers herein contained. 
133.20     (11) Establish county, regional, or statewide schedules of 
133.21  maximum fees and charges which may be paid by county agencies 
133.22  for medical, dental, surgical, hospital, nursing and nursing 
133.23  home care and medicine and medical supplies under all programs 
133.24  of medical care provided by the state and for congregate living 
133.25  care under the income maintenance programs. 
133.26     (12) Have the authority to conduct and administer 
133.27  experimental projects to test methods and procedures of 
133.28  administering assistance and services to recipients or potential 
133.29  recipients of public welfare.  To carry out such experimental 
133.30  projects, it is further provided that the commissioner of human 
133.31  services is authorized to waive the enforcement of existing 
133.32  specific statutory program requirements, rules, and standards in 
133.33  one or more counties.  The order establishing the waiver shall 
133.34  provide alternative methods and procedures of administration, 
133.35  shall not be in conflict with the basic purposes, coverage, or 
133.36  benefits provided by law, and in no event shall the duration of 
134.1   a project exceed four years.  It is further provided that no 
134.2   order establishing an experimental project as authorized by the 
134.3   provisions of this section shall become effective until the 
134.4   following conditions have been met: 
134.5      (a) The secretary of health and human services of the 
134.6   United States has agreed, for the same project, to waive state 
134.7   plan requirements relative to statewide uniformity. 
134.8      (b) A comprehensive plan, including estimated project 
134.9   costs, shall be approved by the legislative advisory commission 
134.10  and filed with the commissioner of administration.  
134.11     (13) According to federal requirements, establish 
134.12  procedures to be followed by local welfare boards in creating 
134.13  citizen advisory committees, including procedures for selection 
134.14  of committee members. 
134.15     (14) Allocate federal fiscal disallowances or sanctions 
134.16  which are based on quality control error rates for the aid to 
134.17  families with dependent children program formerly codified in 
134.18  sections 256.72 to 256.87, medical assistance, or food stamp 
134.19  program in the following manner:  
134.20     (a) One-half of the total amount of the disallowance shall 
134.21  be borne by the county boards responsible for administering the 
134.22  programs.  For the medical assistance and the AFDC program 
134.23  formerly codified in sections 256.72 to 256.87, disallowances 
134.24  shall be shared by each county board in the same proportion as 
134.25  that county's expenditures for the sanctioned program are to the 
134.26  total of all counties' expenditures for the AFDC program 
134.27  formerly codified in sections 256.72 to 256.87, and medical 
134.28  assistance programs.  For the food stamp program, sanctions 
134.29  shall be shared by each county board, with 50 percent of the 
134.30  sanction being distributed to each county in the same proportion 
134.31  as that county's administrative costs for food stamps are to the 
134.32  total of all food stamp administrative costs for all counties, 
134.33  and 50 percent of the sanctions being distributed to each county 
134.34  in the same proportion as that county's value of food stamp 
134.35  benefits issued are to the total of all benefits issued for all 
134.36  counties.  Each county shall pay its share of the disallowance 
135.1   to the state of Minnesota.  When a county fails to pay the 
135.2   amount due hereunder, the commissioner may deduct the amount 
135.3   from reimbursement otherwise due the county, or the attorney 
135.4   general, upon the request of the commissioner, may institute 
135.5   civil action to recover the amount due. 
135.6      (b) Notwithstanding the provisions of paragraph (a), if the 
135.7   disallowance results from knowing noncompliance by one or more 
135.8   counties with a specific program instruction, and that knowing 
135.9   noncompliance is a matter of official county board record, the 
135.10  commissioner may require payment or recover from the county or 
135.11  counties, in the manner prescribed in paragraph (a), an amount 
135.12  equal to the portion of the total disallowance which resulted 
135.13  from the noncompliance, and may distribute the balance of the 
135.14  disallowance according to paragraph (a).  
135.15     (15) Develop and implement special projects that maximize 
135.16  reimbursements and result in the recovery of money to the 
135.17  state.  For the purpose of recovering state money, the 
135.18  commissioner may enter into contracts with third parties.  Any 
135.19  recoveries that result from projects or contracts entered into 
135.20  under this paragraph shall be deposited in the state treasury 
135.21  and credited to a special account until the balance in the 
135.22  account reaches $1,000,000.  When the balance in the account 
135.23  exceeds $1,000,000, the excess shall be transferred and credited 
135.24  to the general fund.  All money in the account is appropriated 
135.25  to the commissioner for the purposes of this paragraph. 
135.26     (16) Have the authority to make direct payments to 
135.27  facilities providing shelter to women and their children 
135.28  according to section 256D.05, subdivision 3.  Upon the written 
135.29  request of a shelter facility that has been denied payments 
135.30  under section 256D.05, subdivision 3, the commissioner shall 
135.31  review all relevant evidence and make a determination within 30 
135.32  days of the request for review regarding issuance of direct 
135.33  payments to the shelter facility.  Failure to act within 30 days 
135.34  shall be considered a determination not to issue direct payments.
135.35     (17) Have the authority to establish and enforce the 
135.36  following county reporting requirements:  
136.1      (a) The commissioner shall establish fiscal and statistical 
136.2   reporting requirements necessary to account for the expenditure 
136.3   of funds allocated to counties for human services programs.  
136.4   When establishing financial and statistical reporting 
136.5   requirements, the commissioner shall evaluate all reports, in 
136.6   consultation with the counties, to determine if the reports can 
136.7   be simplified or the number of reports can be reduced. 
136.8      (b) The county board shall submit monthly or quarterly 
136.9   reports to the department as required by the commissioner.  
136.10  Monthly reports are due no later than 15 working days after the 
136.11  end of the month.  Quarterly reports are due no later than 30 
136.12  calendar days after the end of the quarter, unless the 
136.13  commissioner determines that the deadline must be shortened to 
136.14  20 calendar days to avoid jeopardizing compliance with federal 
136.15  deadlines or risking a loss of federal funding.  Only reports 
136.16  that are complete, legible, and in the required format shall be 
136.17  accepted by the commissioner.  
136.18     (c) If the required reports are not received by the 
136.19  deadlines established in clause (b), the commissioner may delay 
136.20  payments and withhold funds from the county board until the next 
136.21  reporting period.  When the report is needed to account for the 
136.22  use of federal funds and the late report results in a reduction 
136.23  in federal funding, the commissioner shall withhold from the 
136.24  county boards with late reports an amount equal to the reduction 
136.25  in federal funding until full federal funding is received.  
136.26     (d) A county board that submits reports that are late, 
136.27  illegible, incomplete, or not in the required format for two out 
136.28  of three consecutive reporting periods is considered 
136.29  noncompliant.  When a county board is found to be noncompliant, 
136.30  the commissioner shall notify the county board of the reason the 
136.31  county board is considered noncompliant and request that the 
136.32  county board develop a corrective action plan stating how the 
136.33  county board plans to correct the problem.  The corrective 
136.34  action plan must be submitted to the commissioner within 45 days 
136.35  after the date the county board received notice of noncompliance.
136.36     (e) The final deadline for fiscal reports or amendments to 
137.1   fiscal reports is one year after the date the report was 
137.2   originally due.  If the commissioner does not receive a report 
137.3   by the final deadline, the county board forfeits the funding 
137.4   associated with the report for that reporting period and the 
137.5   county board must repay any funds associated with the report 
137.6   received for that reporting period. 
137.7      (f) The commissioner may not delay payments, withhold 
137.8   funds, or require repayment under paragraph (c) or (e) if the 
137.9   county demonstrates that the commissioner failed to provide 
137.10  appropriate forms, guidelines, and technical assistance to 
137.11  enable the county to comply with the requirements.  If the 
137.12  county board disagrees with an action taken by the commissioner 
137.13  under paragraph (c) or (e), the county board may appeal the 
137.14  action according to sections 14.57 to 14.69. 
137.15     (g) Counties subject to withholding of funds under 
137.16  paragraph (c) or forfeiture or repayment of funds under 
137.17  paragraph (e) shall not reduce or withhold benefits or services 
137.18  to clients to cover costs incurred due to actions taken by the 
137.19  commissioner under paragraph (c) or (e). 
137.20     (18) Allocate federal fiscal disallowances or sanctions for 
137.21  audit exceptions when federal fiscal disallowances or sanctions 
137.22  are based on a statewide random sample for the foster care 
137.23  program under title IV-E of the Social Security Act, United 
137.24  States Code, title 42, in direct proportion to each county's 
137.25  title IV-E foster care maintenance claim for that period. 
137.26     (19) Be responsible for ensuring the detection, prevention, 
137.27  investigation, and resolution of fraudulent activities or 
137.28  behavior by applicants, recipients, and other participants in 
137.29  the human services programs administered by the department. 
137.30     (20) Require county agencies to identify overpayments, 
137.31  establish claims, and utilize all available and cost-beneficial 
137.32  methodologies to collect and recover these overpayments in the 
137.33  human services programs administered by the department. 
137.34     (21) Have the authority to administer a drug rebate program 
137.35  for drugs purchased pursuant to the senior citizen prescription 
137.36  drug program established under section 256.955 after the 
138.1   beneficiary's satisfaction of any deductible established in the 
138.2   program.  The commissioner shall require a rebate agreement from 
138.3   all manufacturers of covered drugs as defined in section 
138.4   256B.0625, subdivision 13.  Rebate agreements for prescription 
138.5   drugs delivered on or after July 1, 2002, must include rebates 
138.6   for individuals covered under the prescription drug program who 
138.7   are under 65 years of age.  For each drug, the amount of the 
138.8   rebate shall be equal to the basic rebate as defined for 
138.9   purposes of the federal rebate program in United States Code, 
138.10  title 42, section 1396r-8(c)(1).  This basic rebate shall be 
138.11  applied to single-source and multiple-source drugs.  The 
138.12  manufacturers must provide full payment within 30 days of 
138.13  receipt of the state invoice for the rebate within the terms and 
138.14  conditions used for the federal rebate program established 
138.15  pursuant to section 1927 of title XIX of the Social Security 
138.16  Act.  The manufacturers must provide the commissioner with any 
138.17  information necessary to verify the rebate determined per drug.  
138.18  The rebate program shall utilize the terms and conditions used 
138.19  for the federal rebate program established pursuant to section 
138.20  1927 of title XIX of the Social Security Act. 
138.21     (22) Operate the department's communication systems account 
138.22  established in Laws 1993, First Special Session chapter 1, 
138.23  article 1, section 2, subdivision 2, to manage shared 
138.24  communication costs necessary for the operation of the programs 
138.25  the commissioner supervises.  A communications account may also 
138.26  be established for each regional treatment center which operates 
138.27  communications systems.  Each account must be used to manage 
138.28  shared communication costs necessary for the operations of the 
138.29  programs the commissioner supervises.  The commissioner may 
138.30  distribute the costs of operating and maintaining communication 
138.31  systems to participants in a manner that reflects actual usage. 
138.32  Costs may include acquisition, licensing, insurance, 
138.33  maintenance, repair, staff time and other costs as determined by 
138.34  the commissioner.  Nonprofit organizations and state, county, 
138.35  and local government agencies involved in the operation of 
138.36  programs the commissioner supervises may participate in the use 
139.1   of the department's communications technology and share in the 
139.2   cost of operation.  The commissioner may accept on behalf of the 
139.3   state any gift, bequest, devise or personal property of any 
139.4   kind, or money tendered to the state for any lawful purpose 
139.5   pertaining to the communication activities of the department.  
139.6   Any money received for this purpose must be deposited in the 
139.7   department's communication systems accounts.  Money collected by 
139.8   the commissioner for the use of communication systems must be 
139.9   deposited in the state communication systems account and is 
139.10  appropriated to the commissioner for purposes of this section. 
139.11     (23) Receive any federal matching money that is made 
139.12  available through the medical assistance program for the 
139.13  consumer satisfaction survey.  Any federal money received for 
139.14  the survey is appropriated to the commissioner for this 
139.15  purpose.  The commissioner may expend the federal money received 
139.16  for the consumer satisfaction survey in either year of the 
139.17  biennium. 
139.18     (24) Incorporate cost reimbursement claims from First Call 
139.19  Minnesota into the federal cost reimbursement claiming processes 
139.20  of the department according to federal law, rule, and 
139.21  regulations.  Any reimbursement received is appropriated to the 
139.22  commissioner and shall be disbursed to First Call Minnesota 
139.23  according to normal department payment schedules. 
139.24     (25) Develop recommended standards for foster care homes 
139.25  that address the components of specialized therapeutic services 
139.26  to be provided by foster care homes with those services. 
139.27     Sec. 7.  Minnesota Statutes 1998, section 256.955, 
139.28  subdivision 1, is amended to read: 
139.29     Subdivision 1.  [ESTABLISHMENT.] The commissioner of human 
139.30  services shall establish and administer a senior 
139.31  citizen prescription drug program.  Qualified senior citizens 
139.32  shall be eligible for prescription drug coverage under the 
139.33  program beginning no later than January 1, 1999.  
139.34     Sec. 8.  Minnesota Statutes 1998, section 256.955, 
139.35  subdivision 2, is amended to read: 
139.36     Subd. 2.  [DEFINITIONS.] (a) For purposes of this section, 
140.1   the following definitions apply. 
140.2      (b) "Health plan" has the meaning provided in section 
140.3   62Q.01, subdivision 3. 
140.4      (c) "Health plan company" has the meaning provided in 
140.5   section 62Q.01, subdivision 4. 
140.6      (d) "Qualified senior citizen individual" means an 
140.7   individual age 65 or older who: meets the requirements described 
140.8   in subdivision 2a or 2b, and: 
140.9      (1) is eligible as a qualified Medicare beneficiary 
140.10  according to section 256B.057, subdivision 3 or 3a, or is 
140.11  eligible under section 256B.057, subdivision 3 or 3a, and is 
140.12  also eligible for medical assistance or general assistance 
140.13  medical care with a spenddown as defined in section 256B.056, 
140.14  subdivision 5.  Persons who are determined eligible for who is 
140.15  not determined eligible for medical assistance according to 
140.16  section 256B.0575, who are is not determined eligible for 
140.17  medical assistance or general assistance medical care without a 
140.18  spenddown, or who are is not enrolled in MinnesotaCare, are not 
140.19  eligible for this program; 
140.20     (2) is not enrolled in prescription drug coverage under a 
140.21  health plan; 
140.22     (3) is not enrolled in prescription drug coverage under a 
140.23  Medicare supplement plan, as defined in sections 62A.31 to 
140.24  62A.44, or policies, contracts, or certificates that supplement 
140.25  Medicare issued by health maintenance organizations or those 
140.26  policies, contracts, or certificates governed by section 1833 or 
140.27  1876 of the federal Social Security Act, United States Code, 
140.28  title 42, section 1395, et seq., as amended; 
140.29     (4) has not had coverage described in clauses (2) and (3) 
140.30  for at least four months prior to application for the program; 
140.31  and 
140.32     (5) is a permanent resident of Minnesota as defined in 
140.33  section 256L.09. 
140.34     <b>EFFECTIVE DATE:</b>  This section is effective October 1, 2000. 
140.35     Sec. 9.  Minnesota Statutes 1998, section 256.955, is 
140.36  amended by adding a subdivision to read: 
141.1      Subd. 2a.  [ELIGIBILITY.] (a) An individual satisfying the 
141.2   following requirements and the requirements described in 
141.3   subdivision 2, paragraph (d), is eligible for the prescription 
141.4   drug program: 
141.5      (1) is at least 65 years of age or older; and 
141.6      (2) is eligible as a qualified Medicare beneficiary 
141.7   according to section 256B.057, subdivision 3 or 3a, or is 
141.8   eligible under section 256B.057, subdivision 3 or 3a, and is 
141.9   also eligible for medical assistance or general assistance 
141.10  medical care with a spenddown as defined in section 256B.056, 
141.11  subdivision 5. 
141.12     <b>EFFECTIVE DATE:</b>  This section is effective October 1, 2000. 
141.13     Sec. 10.  Minnesota Statutes 1998, section 256.955, is 
141.14  amended by adding a subdivision to read: 
141.15     Subd. 2b.  [ELIGIBILITY.] (a) Effective July 1, 2002, an 
141.16  individual satisfying the following requirements and the 
141.17  requirements described in subdivision 2, paragraph (d), is 
141.18  eligible for the prescription drug program: 
141.19     (1) is under 65 years of age; and 
141.20     (2) is eligible as a qualified Medicare beneficiary 
141.21  according to section 256B.057, subdivision 3, or is eligible 
141.22  under section 256B.057, subdivision 3, and is also eligible for 
141.23  medical assistance or general assistance medical care with a 
141.24  spenddown as defined in section 256B.056, subdivision 5. 
141.25     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
141.26  256.955, subdivision 4, is amended to read: 
141.27     Subd. 4.  [APPLICATION PROCEDURES AND COORDINATION WITH 
141.28  MEDICAL ASSISTANCE.] Applications and information on the program 
141.29  must be made available at county social service agencies, health 
141.30  care provider offices, and agencies and organizations serving 
141.31  senior citizens and persons with disabilities.  Senior citizens 
141.32  Individuals shall submit applications and any information 
141.33  specified by the commissioner as being necessary to verify 
141.34  eligibility directly to the county social service agencies:  
141.35     (1) beginning January 1, 1999, the county social service 
141.36  agency shall determine medical assistance spenddown eligibility 
142.1   of individuals who qualify for the senior citizen prescription 
142.2   drug program of individuals; and 
142.3      (2) program payments will be used to reduce the spenddown 
142.4   obligations of individuals who are determined to be eligible for 
142.5   medical assistance with a spenddown as defined in section 
142.6   256B.056, subdivision 5. 
142.7   Seniors Qualified individuals who are eligible for medical 
142.8   assistance with a spenddown shall be financially responsible for 
142.9   the deductible amount up to the satisfaction of the spenddown.  
142.10  No deductible applies once the spenddown has been met.  Payments 
142.11  to providers for prescription drugs for persons eligible under 
142.12  this subdivision shall be reduced by the deductible.  
142.13     County social service agencies shall determine an 
142.14  applicant's eligibility for the program within 30 days from the 
142.15  date the application is received.  Eligibility begins the month 
142.16  after approval. 
142.17     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
142.18  256.955, subdivision 8, is amended to read: 
142.19     Subd. 8.  [REPORT.] The commissioner shall annually report 
142.20  to the legislature on the senior citizen prescription drug 
142.21  program.  The report must include demographic information on 
142.22  enrollees, per-prescription expenditures, total program 
142.23  expenditures, hospital and nursing home costs avoided by 
142.24  enrollees, any savings to medical assistance and Medicare 
142.25  resulting from the provision of prescription drug coverage under 
142.26  Medicare by health maintenance organizations, other public and 
142.27  private options for drug assistance to the senior covered 
142.28  population, any hardships caused by the annual deductible, and 
142.29  any recommendations for changes in the senior prescription drug 
142.30  program. 
142.31     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
142.32  256.955, subdivision 9, is amended to read: 
142.33     Subd. 9.  [PROGRAM LIMITATION.] The commissioner shall 
142.34  administer the senior prescription drug program so that the 
142.35  costs total no more than funds appropriated plus the drug rebate 
142.36  proceeds.  Senior Prescription drug program rebate revenues are 
143.1   appropriated to the commissioner and shall be expended to 
143.2   augment funding of the senior prescription drug program.  New 
143.3   enrollment shall cease if the commissioner determines that, 
143.4   given current enrollment, costs of the program will exceed 
143.5   appropriated funds and rebate proceeds.  This section shall be 
143.6   repealed upon federal approval of the waiver to allow the 
143.7   commissioner to provide prescription drug coverage for qualified 
143.8   Medicare beneficiaries whose income is less than 150 percent of 
143.9   the federal poverty guidelines. 
143.10     Sec. 14.  Minnesota Statutes 1998, section 256.9751, is 
143.11  amended to read: 
143.12     256.9751 [CONGREGATE HOUSING ON-SITE COORDINATION (OSC) 
143.13  SERVICES PROJECTS.] 
143.14     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
143.15  section, the following terms have the meanings given them.  
143.16     (a)  [CONGREGATE HOUSING.] "Congregate housing" means 
143.17  federally or locally subsidized housing and nonsubsidized low- 
143.18  and moderate-income multifamily housing units which may not have 
143.19  common areas for activities and for serving food, designed for 
143.20  the elderly, consisting of private apartments and common areas 
143.21  which can be used for activities and for serving meals. 
143.22     (b)  [CONGREGATE HOUSING ON-SITE COORDINATION SERVICES 
143.23  PROJECTS.] "Congregate housing On-site coordination services 
143.24  project" means a project in which services are or could be made 
143.25  available to older persons age 55 or older who live 
143.26  in subsidized housing a designated service area and which helps 
143.27  delay or prevent nursing home placement them remain 
143.28  independent.  To be considered a congregate housing an on-site 
143.29  coordination services project, a project must have:  (1) an 
143.30  on-site coordinator, and; (2) a plan for assuring the 
143.31  availability of one meal per day, seven days a week, for each 
143.32  elderly participant in need who needs a meal to continue to live 
143.33  independently; and (3) an approved designated service area.  
143.34     (c)  [ON-SITE COORDINATOR.] "On-site coordinator" means a 
143.35  person who works on-site in a building or buildings designated 
143.36  service area and who serves as a contact for older persons who 
144.1   need services, support, and assistance in order to delay or 
144.2   prevent nursing home placement help them remain independent.  
144.3      (d)  [CONGREGATE HOUSING ON-SITE COORDINATION SERVICES 
144.4   PROJECT PARTICIPANTS OR PROJECT PARTICIPANTS.] "Congregate 
144.5   housing On-site coordination services project participants" or 
144.6   "project participants" means elderly persons 60 55 years old or 
144.7   older, who are currently residents of, or who are applying for 
144.8   residence in housing sites, planning to move into a designated 
144.9   service area and who need support services to remain independent.
144.10     (e)  [DESIGNATED SERVICE AREA OR DSA.] "Designated service 
144.11  area" or "DSA" means the congregate housing site or sites, and 
144.12  surrounding neighborhoods and communities that have a 
144.13  concentration of persons age 55 or older that is higher than the 
144.14  state average, in which on-site coordination services will be 
144.15  provided. 
144.16     Subd. 3.  [GRANT PROGRAM.] The Minnesota board on aging 
144.17  commissioner shall establish a congregate housing an on-site 
144.18  coordination services grant program which that is coordinated 
144.19  with county government programs and services for elderly persons 
144.20  and, in counties where they exist, with seniors' agenda for 
144.21  independent living (SAIL) projects as defined in section 
144.22  256B.0917, that will enable communities and neighborhoods to 
144.23  provide on-site coordinators to serve as a contact for older 
144.24  persons who need services and support, and or need assistance to 
144.25  access in accessing services, in order to delay or prevent 
144.26  nursing home placement and remain independent. 
144.27     Subd. 4.  [USE OF GRANT FUNDS.] Grant funds shall be used 
144.28  to develop and fund on-site coordinator positions.  Grant funds 
144.29  shall not be used to duplicate existing funds, to modify 
144.30  buildings, or to purchase equipment.  
144.31     Subd. 5.  [GRANT ELIGIBILITY.] A public or nonprofit agency 
144.32  or housing unit may apply for funds to provide a coordinator for 
144.33  congregate housing on-site coordination services to an 
144.34  identified population of frail elderly persons in a subsidized 
144.35  multiunit apartment building or buildings in a 
144.36  community designated service area.  The board commissioner shall 
145.1   give preference to applicants that meet the requirements of this 
145.2   section, and that have a common dining site in the designated 
145.3   service area.  A local match may shall be required.  State money 
145.4   received may also be used to match federal money allocated 
145.5   for congregate housing on-site coordination services.  Grants 
145.6   shall be awarded to urban and rural sites. 
145.7      Subd. 6.  [CRITERIA FOR SELECTION.] The Minnesota board on 
145.8   aging commissioner shall select projects under this section 
145.9   according to the following criteria: 
145.10     (1) the extent to which the proposed project assists older 
145.11  persons to age-in-place to prevent or delay nursing home 
145.12  placement; 
145.13     (2) the extent to which the proposed project identifies the 
145.14  needs of project participants; 
145.15     (3) the extent to which the proposed project identifies how 
145.16  the on-site coordinator will help meet the needs of project 
145.17  participants; 
145.18     (4) the extent to which the proposed project plan assures 
145.19  the availability of one meal a day, seven days a week, for each 
145.20  elderly participant in need in the designated service area; 
145.21     (5) the extent to which the proposed project demonstrates 
145.22  involvement of participants, communities, and family members in 
145.23  the project; and 
145.24     (6) the extent to which the proposed project demonstrates 
145.25  involvement coordination of housing providers community agencies 
145.26  and public and private service agencies, including area agencies 
145.27  on aging. 
145.28  The commissioner shall consult with the county board of the 
145.29  county in which the project would be implemented, and shall not 
145.30  select any project without approval of the county board.  A 
145.31  designated service area with a senior dining program may be 
145.32  given preference. 
145.33     Subd. 7.  [GRANT APPLICATIONS.] The Minnesota board on 
145.34  aging commissioner shall request proposals for grants and award 
145.35  grants using the criteria in subdivision 6.  Grant applications 
145.36  shall include: 
146.1      (1) documentation of the need for congregate on-site 
146.2   coordination services in the DSA so the residents can remain 
146.3   independent; 
146.4      (2) a description of the resources, such as social services 
146.5   and health services, that will be available in the DSA community 
146.6   to provide the necessary support services; 
146.7      (3) a description of the target population, as defined in 
146.8   subdivision 1, paragraph (d); 
146.9      (4) a performance plan that includes written performance 
146.10  objectives, outcomes, timelines, and the procedure the grantee 
146.11  will use to document and measure success in meeting the 
146.12  objectives; and 
146.13     (5) letters of support from appropriate public and private 
146.14  agencies and organizations, such as area agencies on aging and 
146.15  county human service departments that demonstrate an intent to 
146.16  work with collaborate and coordinate with the agency requesting 
146.17  a grant.  
146.18     Subd. 8.  [REPORT.] By January 1, 1993, the Minnesota board 
146.19  on aging shall submit a report to the legislature evaluating the 
146.20  programs.  The report must document the project costs and 
146.21  outcomes that helped delay or prevent nursing home placement.  
146.22  The report must describe steps taken for quality assurance and 
146.23  must also include recommendations based on the project 
146.24  findings.  The commissioner shall collect data on a quarterly 
146.25  basis on the number of persons served and other factors relating 
146.26  to the goals, activities, and accomplishments of the projects.  
146.27  The commissioner shall provide this data in summary form to the 
146.28  legislature in annual reports, due January 1, 2001, and each 
146.29  January 1 thereafter.  The annual reports must also include 
146.30  recommendations based on project findings. 
146.31     Subd. 9.  [TECHNICAL ASSISTANCE.] The commissioner may 
146.32  provide technical assistance to sponsors of on-site coordination 
146.33  services programs or may contract or delegate the provision of 
146.34  technical assistance. 
146.35     Subd. 10.  [OTHER AGENCIES.] The commissioner may delegate, 
146.36  use, or employ any federal, state, regional, or local public or 
147.1   private agency or organization, including organizations of 
147.2   physically handicapped persons, upon terms the commissioner 
147.3   deems necessary or desirable, to assist in the exercise of any 
147.4   of the powers granted in this section. 
147.5      Sec. 15.  Minnesota Statutes 1999 Supplement, section 
147.6   256B.057, subdivision 3, is amended to read: 
147.7      Subd. 3.  [QUALIFIED MEDICARE BENEFICIARIES.] A person who 
147.8   is entitled to Part A Medicare benefits, whose income is equal 
147.9   to or less than 100 percent of the federal poverty guidelines, 
147.10  and whose assets are no more than twice the asset limit used to 
147.11  determine eligibility for the supplemental security income 
147.12  program $10,000 for a single individual and $18,000 for a 
147.13  married couple or family of two or more, is eligible for medical 
147.14  assistance reimbursement of Part A and Part B premiums, Part A 
147.15  and Part B coinsurance and deductibles, and cost-effective 
147.16  premiums for enrollment with a health maintenance organization 
147.17  or a competitive medical plan under section 1876 of the Social 
147.18  Security Act.  Reimbursement of the Medicare coinsurance and 
147.19  deductibles, when added to the amount paid by Medicare, must not 
147.20  exceed the total rate the provider would have received for the 
147.21  same service or services if the person were a medical assistance 
147.22  recipient with Medicare coverage.  Increases in benefits under 
147.23  Title II of the Social Security Act shall not be counted as 
147.24  income for purposes of this subdivision until the first day of 
147.25  the second full month following publication of the change in the 
147.26  federal poverty guidelines.  
147.27     <b>EFFECTIVE DATE:</b>  This section is effective October 1, 2000. 
147.28     Sec. 16.  Minnesota Statutes 1998, section 256B.0625, is 
147.29  amended by adding a subdivision to read: 
147.30     Subd. 41.  [MENTAL HEALTH PROFESSIONAL.] Notwithstanding 
147.31  Minnesota Rules, part 9505.0175, subpart 28, the definition of a 
147.32  mental health professional shall include a person who is 
147.33  qualified as specified in section 245.462, subdivision 18, 
147.34  clause (5); or 245.4871, subdivision 27, clause (5), for the 
147.35  purpose of this section and Minnesota Rules, parts 9505.0170 to 
147.36  9505.0475.  
148.1      Sec. 17.  Minnesota Statutes 1999 Supplement, section 
148.2   256B.094, subdivision 6, is amended to read: 
148.3      Subd. 6.  [MEDICAL ASSISTANCE REIMBURSEMENT OF CASE 
148.4   MANAGEMENT SERVICES.] (a) Medical assistance reimbursement for 
148.5   services under this section shall be made on a monthly basis.  
148.6   Payment is based on face-to-face or telephone contacts between 
148.7   the case manager and the client, client's family, primary 
148.8   caregiver, legal representative, or other relevant person 
148.9   identified as necessary to the development or implementation of 
148.10  the goals of the individual service plan regarding the status of 
148.11  the client, the individual service plan, or the goals for the 
148.12  client.  These contacts must meet the minimum standards in 
148.13  clauses (1) and (2):  
148.14     (1) there must be a face-to-face contact at least once a 
148.15  month except as provided in clause (2); and 
148.16     (2) for a client placed outside of the county of financial 
148.17  responsibility in an excluded time facility under section 
148.18  256G.02, subdivision 6, or through the Interstate Compact on the 
148.19  Placement of Children, section 260.851, and the placement in 
148.20  either case is more than 60 miles beyond the county boundaries, 
148.21  there must be at least one contact per month and not more than 
148.22  two consecutive months without a face-to-face contact. 
148.23     (b) Except as provided under paragraph (c), the payment 
148.24  rate is established using time study data on activities of 
148.25  provider service staff and reports required under sections 
148.26  245.482, 256.01, subdivision 2, paragraph (17), and 256E.08, 
148.27  subdivision 8. 
148.28     (c) Payments for tribes may be made according to section 
148.29  256B.0625 or other relevant federally approved rate setting 
148.30  methodology for child welfare targeted case management provided 
148.31  by Indian health services and facilities operated by a tribe or 
148.32  tribal organization. 
148.33     (d) Payment for case management provided by county or 
148.34  tribal social services contracted vendors shall be based on a 
148.35  monthly rate negotiated by the host county or tribal social 
148.36  services.  The negotiated rate must not exceed the rate charged 
149.1   by the vendor for the same service to other payers.  If the 
149.2   service is provided by a team of contracted vendors, the county 
149.3   or tribal social services may negotiate a team rate with a 
149.4   vendor who is a member of the team.  The team shall determine 
149.5   how to distribute the rate among its members.  No reimbursement 
149.6   received by contracted vendors shall be returned to the county 
149.7   or tribal social services, except to reimburse the county or 
149.8   tribal social services for advance funding provided by the 
149.9   county or tribal social services to the vendor. 
149.10     (e) If the service is provided by a team that includes 
149.11  contracted vendors and county or tribal social services staff, 
149.12  the costs for county or tribal social services staff 
149.13  participation in the team shall be included in the rate for 
149.14  county or tribal social services provided services.  In this 
149.15  case, the contracted vendor and the county or tribal social 
149.16  services may each receive separate payment for services provided 
149.17  by each entity in the same month.  To prevent duplication of 
149.18  services, each entity must document, in the recipient's file, 
149.19  the need for team case management and a description of the roles 
149.20  and services of the team members. 
149.21     Separate payment rates may be established for different 
149.22  groups of providers to maximize reimbursement as determined by 
149.23  the commissioner.  The payment rate will be reviewed annually 
149.24  and revised periodically to be consistent with the most recent 
149.25  time study and other data.  Payment for services will be made 
149.26  upon submission of a valid claim and verification of proper 
149.27  documentation described in subdivision 7.  Federal 
149.28  administrative revenue earned through the time study, or under 
149.29  paragraph (c), shall be distributed according to earnings, to 
149.30  counties, reservations, or groups of counties or reservations 
149.31  which have the same payment rate under this subdivision, and to 
149.32  the group of counties or reservations which are not certified 
149.33  providers under section 256F.10.  The commissioner shall modify 
149.34  the requirements set out in Minnesota Rules, parts 9550.0300 to 
149.35  9550.0370, as necessary to accomplish this. 
149.36     Sec. 18.  Minnesota Statutes 1999 Supplement, section 
150.1   256B.431, subdivision 17, is amended to read: 
150.2      Subd. 17.  [SPECIAL PROVISIONS FOR MORATORIUM EXCEPTIONS.] 
150.3   (a) Notwithstanding Minnesota Rules, part 9549.0060, subpart 3, 
150.4   for rate periods beginning on October 1, 1992, and for rate 
150.5   years beginning after June 30, 1993, a nursing facility that (1) 
150.6   has completed a construction project approved under section 
150.7   144A.071, subdivision 4a, clause (m); (2) has completed a 
150.8   construction project approved under section 144A.071, 
150.9   subdivision 4a, and effective after June 30, 1995; or (3) has 
150.10  completed a renovation, replacement, or upgrading project 
150.11  approved under the moratorium exception process in section 
150.12  144A.073 shall be reimbursed for costs directly identified to 
150.13  that project as provided in subdivision 16 and this subdivision. 
150.14     (b) Notwithstanding Minnesota Rules, part 9549.0060, 
150.15  subparts 5, item A, subitems (1) and (3), and 7, item D, 
150.16  allowable interest expense on debt shall include: 
150.17     (1) interest expense on debt related to the cost of 
150.18  purchasing or replacing depreciable equipment, excluding 
150.19  vehicles, not to exceed six percent of the total historical cost 
150.20  of the project; and 
150.21     (2) interest expense on debt related to financing or 
150.22  refinancing costs, including costs related to points, loan 
150.23  origination fees, financing charges, legal fees, and title 
150.24  searches; and issuance costs including bond discounts, bond 
150.25  counsel, underwriter's counsel, corporate counsel, printing, and 
150.26  financial forecasts.  Allowable debt related to items in this 
150.27  clause shall not exceed seven percent of the total historical 
150.28  cost of the project.  To the extent these costs are financed, 
150.29  the straight-line amortization of the costs in this clause is 
150.30  not an allowable cost; and 
150.31     (3) interest on debt incurred for the establishment of a 
150.32  debt reserve fund, net of the interest earned on the debt 
150.33  reserve fund. 
150.34     (c) Debt incurred for costs under paragraph (b) is not 
150.35  subject to Minnesota Rules, part 9549.0060, subpart 5, item A, 
150.36  subitem (5) or (6). 
151.1      (d) The incremental increase in a nursing facility's rental 
151.2   rate, determined under Minnesota Rules, parts 9549.0010 to 
151.3   9549.0080, and this section, resulting from the acquisition of 
151.4   allowable capital assets, and allowable debt and interest 
151.5   expense under this subdivision shall be added to its 
151.6   property-related payment rate and shall be effective on the 
151.7   first day of the month following the month in which the 
151.8   moratorium project was completed. 
151.9      (e) Notwithstanding subdivision 3f, paragraph (a), for rate 
151.10  periods beginning on October 1, 1992, and for rate years 
151.11  beginning after June 30, 1993, the replacement-costs-new per bed 
151.12  limit to be used in Minnesota Rules, part 9549.0060, subpart 4, 
151.13  item B, for a nursing facility that has completed a renovation, 
151.14  replacement, or upgrading project that has been approved under 
151.15  the moratorium exception process in section 144A.073, or that 
151.16  has completed an addition to or replacement of buildings, 
151.17  attached fixtures, or land improvements for which the total 
151.18  historical cost exceeds the lesser of $150,000 or ten percent of 
151.19  the most recent appraised value, must be $47,500 per licensed 
151.20  bed in multiple-bed rooms and $71,250 per licensed bed in a 
151.21  single-bed room.  These amounts must be adjusted annually as 
151.22  specified in subdivision 3f, paragraph (a), beginning January 1, 
151.23  1993. 
151.24     (f) A nursing facility that completes a project identified 
151.25  in this subdivision and, as of April 17, 1992, has not been 
151.26  mailed a rate notice with a special appraisal for a completed 
151.27  project, or completes a project after April 17, 1992, but before 
151.28  September 1, 1992, may elect either to request a special 
151.29  reappraisal with the corresponding adjustment to the 
151.30  property-related payment rate under the laws in effect on June 
151.31  30, 1992, or to submit their capital asset and debt information 
151.32  after that date and obtain the property-related payment rate 
151.33  adjustment under this section, but not both. 
151.34     (g) For purposes of this paragraph, a total replacement 
151.35  means the complete replacement of the nursing facility's 
151.36  physical plant through the construction of a new physical plant 
152.1   or, the transfer of the nursing facility's license from one 
152.2   physical plant location to another, or a new building addition 
152.3   to relocate beds from three- and four-bed wards.  For total 
152.4   replacement projects completed on or after July 1, 1992, the 
152.5   commissioner shall compute the incremental change in the nursing 
152.6   facility's rental per diem, for rate years beginning on or after 
152.7   July 1, 1995, by replacing its appraised value, including the 
152.8   historical capital asset costs, and the capital debt and 
152.9   interest costs with the new nursing facility's allowable capital 
152.10  asset costs and the related allowable capital debt and interest 
152.11  costs.  If the new nursing facility has decreased its licensed 
152.12  capacity, the aggregate investment per bed limit in subdivision 
152.13  3a, paragraph (d), shall apply.  If the new nursing facility has 
152.14  retained a portion of the original physical plant for nursing 
152.15  facility usage, then a portion of the appraised value prior to 
152.16  the replacement must be retained and included in the calculation 
152.17  of the incremental change in the nursing facility's rental per 
152.18  diem.  For purposes of this part, the original nursing facility 
152.19  means the nursing facility prior to the total replacement 
152.20  project.  The portion of the appraised value to be retained 
152.21  shall be calculated according to clauses (1) to (3): 
152.22     (1) The numerator of the allocation ratio shall be the 
152.23  square footage of the area in the original physical plant which 
152.24  is being retained for nursing facility usage. 
152.25     (2) The denominator of the allocation ratio shall be the 
152.26  total square footage of the original nursing facility physical 
152.27  plant. 
152.28     (3) Each component of the nursing facility's allowable 
152.29  appraised value prior to the total replacement project shall be 
152.30  multiplied by the allocation ratio developed by dividing clause 
152.31  (1) by clause (2). 
152.32     In the case of either type of total replacement as 
152.33  authorized under section 144A.071 or 144A.073, the provisions of 
152.34  this subdivision shall also apply.  For purposes of the 
152.35  moratorium exception authorized under section 144A.071, 
152.36  subdivision 4a, paragraph (s), if the total replacement involves 
153.1   the renovation and use of an existing health care facility 
153.2   physical plant, the new allowable capital asset costs and 
153.3   related debt and interest costs shall include first the 
153.4   allowable capital asset costs and related debt and interest 
153.5   costs of the renovation, to which shall be added the allowable 
153.6   capital asset costs of the existing physical plant prior to the 
153.7   renovation, and if reported by the facility, the related 
153.8   allowable capital debt and interest costs. 
153.9      (h) Notwithstanding Minnesota Rules, part 9549.0060, 
153.10  subpart 11, item C, subitem (2), for a total replacement, as 
153.11  defined in paragraph (g), authorized under section 144A.071 or 
153.12  144A.073 after July 1, 1999, or any building project that is a 
153.13  relocation, renovation, upgrading, or conversion authorized 
153.14  under section 144A.073, after July 1, 2001, the 
153.15  replacement-costs-new per bed limit shall be $74,280 per 
153.16  licensed bed in multiple-bed rooms, $92,850 per licensed bed in 
153.17  semiprivate rooms with a fixed partition separating the resident 
153.18  beds, and $111,420 per licensed bed in single rooms.  Minnesota 
153.19  Rules, part 9549.0060, subpart 11, item C, subitem (2), does not 
153.20  apply.  These amounts must be adjusted annually as specified in 
153.21  subdivision 3f, paragraph (a), beginning January 1, 2000.  
153.22     (i) For a total replacement, as defined in paragraph (g), 
153.23  authorized under section 144A.073 for a 96-bed nursing home in 
153.24  Carlton county, the replacement-costs-new per bed limit shall be 
153.25  $74,280 per licensed bed in multiple-bed rooms, $92,850 per 
153.26  licensed bed in semiprivate rooms with a fixed partition 
153.27  separating the resident's beds, and $111,420 per licensed bed in 
153.28  a single room.  Minnesota Rules, part 9549.0060, subpart 11, 
153.29  item C, subitem (2), does not apply.  The resulting maximum 
153.30  allowable replacement-costs-new multiplied by 1.25 shall 
153.31  constitute the project's dollar threshold for purposes of 
153.32  application of the limit set forth in section 144A.071, 
153.33  subdivision 2.  The commissioner of health may waive the 
153.34  requirements of section 144A.073, subdivision 3b, paragraph (b), 
153.35  clause (2), on the condition that the other requirements of that 
153.36  paragraph are met. 
154.1      (j) For a total replacement, as defined in paragraph (g), 
154.2   authorized under section 144A.073 involving a new building 
154.3   addition that relocates beds from three-bed wards for an 80-bed 
154.4   nursing home in Redwood county, the replacement-costs-new per 
154.5   bed limit shall be $74,280 per licensed bed for multiple-bed 
154.6   rooms; $92,850 per licensed bed for semiprivate rooms with a 
154.7   fixed partition separating the beds; and $111,420 per licensed 
154.8   bed for single rooms.  These amounts shall be adjusted annually, 
154.9   beginning January 1, 2001.  Minnesota Rules, part 9549.0060, 
154.10  subpart 11, item C, subitem (2), does not apply.  The resulting 
154.11  maximum allowable replacement-costs-new multiplied by 1.25 shall 
154.12  constitute the project's dollar threshold for purposes of 
154.13  application of the limit set forth in section 144A.071, 
154.14  subdivision 2.  The commissioner of health may waive the 
154.15  requirements of section 144A.073, subdivision 3b, paragraph (b), 
154.16  clause (2), on the condition that the other requirements of that 
154.17  paragraph are met. 
154.18     Sec. 19.  Minnesota Statutes 1999 Supplement, section 
154.19  256B.431, subdivision 28, is amended to read: 
154.20     Subd. 28.  [NURSING FACILITY RATE INCREASES BEGINNING JULY 
154.21  1, 1999, AND JULY 1, 2000.] (a) For the rate years beginning 
154.22  July 1, 1999, and July 1, 2000, the commissioner shall make 
154.23  available to each nursing facility reimbursed under this section 
154.24  or section 256B.434 an adjustment to the total operating payment 
154.25  rate.  For nursing facilities reimbursed under this section or 
154.26  section 256B.434, the July 1, 2000, operating payment rate 
154.27  increases provided in this subdivision shall be applied to each 
154.28  facility's June 30, 2000, operating payment rate.  For each 
154.29  facility, total operating costs shall be separated into costs 
154.30  that are compensation related and all other costs.  
154.31  Compensation-related costs include salaries, payroll taxes, and 
154.32  fringe benefits for all employees except management fees, the 
154.33  administrator, and central office staff. 
154.34     (b) For the rate year beginning July 1, 1999, the 
154.35  commissioner shall make available a rate increase for 
154.36  compensation-related costs of 4.843 percent and a rate increase 
155.1   for all other operating costs of 3.446 percent. 
155.2      (c) For the rate year beginning July 1, 2000, the 
155.3   commissioner shall make available: 
155.4      (1) a rate increase for compensation-related costs of 3.632 
155.5   percent; 
155.6      (2) an additional rate increase which must be used to 
155.7   increase the per-hour pay rate of all employees except 
155.8   management fees, the administrator, and central office staff by 
155.9   an equal dollar amount and to pay associated costs for FICA, the 
155.10  Medicare tax, workers' compensation premiums, and federal and 
155.11  state unemployment insurance, to be calculated according to 
155.12  clauses (i) to (iii): 
155.13     (i) the commissioner shall calculate the arithmetic mean of 
155.14  the eleven June 30, 2000, operating rates for each facility; 
155.15     (ii) the commissioner shall construct an array of nursing 
155.16  facilities from highest to lowest, according to the arithmetic 
155.17  mean calculated in clause (i).  A numerical rank shall be 
155.18  assigned to each facility in the array.  The facility with the 
155.19  highest mean shall be assigned a numerical rank of one.  The 
155.20  facility with the lowest mean shall be assigned a numerical rank 
155.21  equal to the total number of nursing facilities in the array.  
155.22  All other facilities shall be assigned a numerical rank in 
155.23  accordance with their position in the array; 
155.24     (iii) the amount of the additional rate increase shall be 
155.25  $1 plus an amount equal to $3.13 multiplied by the ratio of the 
155.26  facility's numeric rank divided by the number of facilities in 
155.27  the array; and 
155.28     (3) a rate increase for all other operating costs of 2.585 
155.29  percent.  
155.30     Money received by a facility as a result of the additional 
155.31  rate increase provided under clause (2) shall be used only for 
155.32  wage increases implemented on or after July 1, 2000, and shall 
155.33  not be used for wage increases implemented prior to that date. 
155.34     (d) The payment rate adjustment for each nursing facility 
155.35  must be determined under clause (1) or (2): 
155.36     (1) for each nursing facility that reports salaries for 
156.1   registered nurses, licensed practical nurses, aides, orderlies, 
156.2   and attendants separately, the commissioner shall determine the 
156.3   payment rate adjustment using the categories specified in 
156.4   paragraph (a) multiplied by the rate increases specified in 
156.5   paragraph (b) or (c), and then dividing the resulting amount by 
156.6   the nursing facility's actual resident days.  In determining the 
156.7   amount of a payment rate adjustment for a nursing facility 
156.8   reimbursed under section 256B.434, the commissioner shall 
156.9   determine the proportions of the facility's rates that are 
156.10  compensation-related costs and all other operating costs based 
156.11  on the facility's most recent cost report; and 
156.12     (2) for each nursing facility that does not report salaries 
156.13  for registered nurses, licensed practical nurses, aides, 
156.14  orderlies, and attendants separately, the payment rate 
156.15  adjustment shall be computed using the facility's total 
156.16  operating costs, separated into the categories specified in 
156.17  paragraph (a) in proportion to the weighted average of all 
156.18  facilities determined under clause (1), multiplied by the rate 
156.19  increases specified in paragraph (b) or (c), and then dividing 
156.20  the resulting amount by the nursing facility's actual resident 
156.21  days. 
156.22     (e) A nursing facility may apply for the 
156.23  compensation-related payment rate adjustment calculated under 
156.24  this subdivision.  The application must be made to the 
156.25  commissioner and contain a plan by which the nursing facility 
156.26  will distribute the compensation-related portion of the payment 
156.27  rate adjustment to employees of the nursing facility.  For 
156.28  nursing facilities in which the employees are represented by an 
156.29  exclusive bargaining representative, an agreement negotiated and 
156.30  agreed to by the employer and the exclusive bargaining 
156.31  representative constitutes the plan.  For the second rate year, 
156.32  a negotiated agreement constitutes the plan only if the 
156.33  agreement is finalized after the date of enactment of all rate 
156.34  increases for the second rate year.  The commissioner shall 
156.35  review the plan to ensure that the payment rate adjustment per 
156.36  diem is used as provided in paragraphs (a) to (c).  To be 
157.1   eligible, a facility must submit its plan for the compensation 
157.2   distribution by December 31 each year.  A facility may amend its 
157.3   plan for the second rate year by submitting a revised plan by 
157.4   December 31, 2000.  If a facility's plan for compensation 
157.5   distribution is effective for its employees after July 1 of the 
157.6   year that the funds are available, the payment rate adjustment 
157.7   per diem shall be effective the same date as its plan. 
157.8      (f) A copy of the approved distribution plan must be made 
157.9   available to all employees.  This must be done by giving each 
157.10  employee a copy or by posting it in an area of the nursing 
157.11  facility to which all employees have access.  If an employee 
157.12  does not receive the compensation adjustment described in their 
157.13  facility's approved plan and is unable to resolve the problem 
157.14  with the facility's management or through the employee's union 
157.15  representative, the employee may contact the commissioner at an 
157.16  address or phone number provided by the commissioner and 
157.17  included in the approved plan.  
157.18     (g) If the reimbursement system under section 256B.435 is 
157.19  not implemented until July 1, 2001, the salary adjustment per 
157.20  diem authorized in subdivision 2i, paragraph (c), shall continue 
157.21  until June 30, 2001.  
157.22     (h) For the rate year beginning July 1, 1999, the following 
157.23  nursing facilities shall be allowed a rate increase equal to 67 
157.24  percent of the rate increase that would be allowed if 
157.25  subdivision 26, paragraph (a), was not applied: 
157.26     (1) a nursing facility in Carver county licensed for 33 
157.27  nursing home beds and four boarding care beds; 
157.28     (2) a nursing facility in Faribault county licensed for 159 
157.29  nursing home beds on September 30, 1998; and 
157.30     (3) a nursing facility in Houston county licensed for 68 
157.31  nursing home beds on September 30, 1998. 
157.32     (i) For the rate year beginning July 1, 1999, the following 
157.33  nursing facilities shall be allowed a rate increase equal to 67 
157.34  percent of the rate increase that would be allowed if 
157.35  subdivision 26, paragraphs (a) and (b), were not applied: 
157.36     (1) a nursing facility in Chisago county licensed for 135 
158.1   nursing home beds on September 30, 1998; and 
158.2      (2) a nursing facility in Murray county licensed for 62 
158.3   nursing home beds on September 30, 1998. 
158.4      (j) For the rate year beginning July 1, 1999, a nursing 
158.5   facility in Hennepin county licensed for 134 beds on September 
158.6   30, 1998, shall: 
158.7      (1) have the prior year's allowable care-related per diem 
158.8   increased by $3.93 and the prior year's other operating cost per 
158.9   diem increased by $1.69 before adding the inflation in 
158.10  subdivision 26, paragraph (d), clause (2); and 
158.11     (2) be allowed a rate increase equal to 67 percent of the 
158.12  rate increase that would be allowed if subdivision 26, 
158.13  paragraphs (a) and (b), were not applied. 
158.14     The increases provided in paragraphs (h), (i), and (j) 
158.15  shall be included in the facility's total payment rates for the 
158.16  purposes of determining future rates under this section or any 
158.17  other section. 
158.18     Sec. 20.  Minnesota Statutes 1998, section 256B.431, is 
158.19  amended by adding a subdivision to read: 
158.20     Subd. 29.  [FACILITY RATE INCREASES EFFECTIVE JULY 1, 
158.21  2000.] Following the determination under subdivision 28 of the 
158.22  payment rate for the rate year beginning July 1, 2000, for a 
158.23  facility in Roseau county licensed for 49 beds, the facility's 
158.24  operating cost per diem shall be increased by the following 
158.25  amounts: 
158.26     (1) case mix class A, $1.97; 
158.27     (2) case mix class B, $2.11; 
158.28     (3) case mix class C, $2.26; 
158.29     (4) case mix class D, $2.39; 
158.30     (5) case mix class E, $2.54; 
158.31     (6) case mix class F, $2.55; 
158.32     (7) case mix class G, $2.66; 
158.33     (8) case mix class H, $2.90; 
158.34     (9) case mix class I, $2.97; 
158.35     (10) case mix class J, $3.10; and 
158.36     (11) case mix class K, $3.36. 
159.1   These increases shall be included in the facility's total 
159.2   payment rates for the purpose of determining future rates under 
159.3   this section or any other section. 
159.4      Sec. 21.  Minnesota Statutes 1998, section 256B.431, is 
159.5   amended by adding a subdivision to read: 
159.6      Subd. 30.  [BED LAYAWAY AND DELICENSURE.] (a) For rate 
159.7   years beginning on or after July 1, 2000, a nursing facility 
159.8   reimbursed under this section which has placed beds on layaway 
159.9   shall, for purposes of application of the downsizing incentive 
159.10  in subdivision 3a, paragraph (d), and calculation of the rental 
159.11  per diem, have those beds given the same effect as if the beds 
159.12  had been delicensed so long as the beds remain on layaway.  At 
159.13  the time of a layaway, a facility may change its single bed 
159.14  election for use in calculating capacity days under Minnesota 
159.15  Rules, part 9549.0060, subpart 11.  The property payment rate 
159.16  increase shall be effective the first day of the month following 
159.17  the month in which the layaway of the beds becomes effective 
159.18  under section 144A.071, subdivision 4b. 
159.19     (b) For rate years beginning on or after July 1, 2000, 
159.20  notwithstanding any provision to the contrary under section 
159.21  256B.434, a nursing facility reimbursed under that section which 
159.22  has placed beds on layaway shall, for so long as the beds remain 
159.23  on layaway, be allowed to: 
159.24     (1) aggregate the applicable investment per bed limits 
159.25  based on the number of beds licensed immediately prior to 
159.26  entering the alternative payment system; 
159.27     (2) retain or change the facility's single bed election for 
159.28  use in calculating capacity days under Minnesota Rules, part 
159.29  9549.0060, subpart 11; and 
159.30     (3) establish capacity days based on the number of beds 
159.31  immediately prior to the layaway and the number of beds after 
159.32  the layaway. 
159.33  The commissioner shall increase the facility's property payment 
159.34  rate by the incremental increase in the rental per diem 
159.35  resulting from the recalculation of the facility's rental per 
159.36  diem applying only the changes resulting from the layaway of 
160.1   beds and clauses (1), (2), and (3).  If a facility reimbursed 
160.2   under section 256B.434 completes a moratorium exception project 
160.3   after its base year, the base year property rate shall be the 
160.4   moratorium project property rate.  The base year rate shall be 
160.5   inflated by the factors in section 256B.434, subdivision 4, 
160.6   paragraph (c).  The property payment rate increase shall be 
160.7   effective the first day of the month following the month in 
160.8   which the layaway of the beds becomes effective. 
160.9      (c) If a nursing facility removes a bed from layaway status 
160.10  in accordance with section 144A.071, subdivision 4b, the 
160.11  commissioner shall establish capacity days based on the number 
160.12  of licensed and certified beds in the facility not on layaway 
160.13  and shall reduce the nursing facility's property payment rate in 
160.14  accordance with paragraph (b). 
160.15     (d) For the rate years beginning on or after July 1, 2000, 
160.16  notwithstanding any provision to the contrary under section 
160.17  256B.434, a nursing facility reimbursed under that section, 
160.18  which has delicensed beds after July 1, 2000, by giving notice 
160.19  of the delicensure to the commissioner of health according to 
160.20  the notice requirements in section 144A.071, subdivision 4b, 
160.21  shall be allowed to: 
160.22     (1) aggregate the applicable investment per bed limits 
160.23  based on the number of beds licensed immediately prior to 
160.24  entering the alternative payment system; 
160.25     (2) retain or change the facility's single bed election for 
160.26  use in calculating capacity days under Minnesota Rules, part 
160.27  9549.0060, subpart 11; and 
160.28     (3) establish capacity days based on the number of beds 
160.29  immediately prior to the delicensure and the number of beds 
160.30  after the delicensure. 
160.31  The commissioner shall increase the facility's property payment 
160.32  rate by the incremental increase in the rental per diem 
160.33  resulting from the recalculation of the facility's rental per 
160.34  diem applying only the changes resulting from the delicensure of 
160.35  beds and clauses (1), (2), and (3).  If a facility reimbursed 
160.36  under section 256B.434 completes a moratorium exception project 
161.1   after its base year, the base year property rate shall be the 
161.2   moratorium project property rate.  The base year rate shall be 
161.3   inflated by the factors in section 256B.434, subdivision 4, 
161.4   paragraph (c).  The property payment rate increase shall be 
161.5   effective the first day of the month following the month in 
161.6   which the delicensure of the beds becomes effective. 
161.7      (e) For nursing facilities reimbursed under this section or 
161.8   section 256B.434, any beds placed on layaway shall not be 
161.9   included in calculating facility occupancy as it pertains to 
161.10  leave days defined in Minnesota Rules, part 9505.0415. 
161.11     (f) For nursing facilities reimbursed under this section or 
161.12  section 256B.434, the rental rate calculated after placing beds 
161.13  on layaway may not be less than the rental rate prior to placing 
161.14  beds on layaway. 
161.15     (g) A nursing facility receiving a rate adjustment as a 
161.16  result of this section shall comply with section 256B.47, 
161.17  subdivision 2. 
161.18     (h) A facility that does not utilize the space made 
161.19  available as a result of bed layaway or delicensure under this 
161.20  subdivision to reduce the number of beds per room or provide 
161.21  more common space for nursing facility uses or perform other 
161.22  activities related to the operation of the nursing facility 
161.23  shall have its property rate increase calculated under this 
161.24  subdivision reduced by the ratio of the square footage made 
161.25  available that is not used for these purposes to the total 
161.26  square footage made available as a result of bed layaway or 
161.27  delicensure. 
161.28     Sec. 22.  Minnesota Statutes 1998, section 256B.434, is 
161.29  amended by adding a subdivision to read: 
161.30     Subd. 4b.  [FACILITY RATE INCREASES EFFECTIVE JULY 1, 
161.31  2000.] For the rate year beginning July 1, 2000, the nursing 
161.32  facilities described in clauses (1) to (6) shall receive the 
161.33  rate increases indicated.  The increases under this subdivision 
161.34  shall be added following the determination under section 
161.35  256B.431, subdivision 28, of the payment rate for the rate year 
161.36  beginning July 1, 2000, and shall be included in the facility's 
162.1   total payment rates for the purposes of determining future rates 
162.2   under this section or any other section: 
162.3      (1) a nursing facility in Hennepin county licensed for 290 
162.4   beds shall receive an operating cost per diem increase of 5.9 
162.5   percent, provided that the facility delicenses, decertifies, or 
162.6   places on layaway status, if that status is otherwise permitted 
162.7   by law, 70 beds; 
162.8      (2) a nursing facility in Goodhue county licensed for 84 
162.9   beds shall receive an increase of $1.54 in each case mix payment 
162.10  rate; 
162.11     (3) a nursing facility located in Rochester and licensed 
162.12  for 103 beds on January 1, 2000, shall receive an increase in 
162.13  its case mix resident class A payment of $3.78, and an increase 
162.14  in the payment rate for all other case mix classes of that 
162.15  amount multiplied by the class weight for that case mix class 
162.16  established in Minnesota Rules, part 9549.0058, subpart 3; 
162.17     (4) a nursing facility in Wright county licensed for 154 
162.18  beds shall receive an increase of $2.03 in each case mix payment 
162.19  rate to be used for employee wage and benefit enhancements; 
162.20     (5) a facility in Todd county licensed for 78 beds, shall 
162.21  have its operating cost per diem increased by the following 
162.22  amounts: 
162.23     (i) case mix class A, $1.16; 
162.24     (ii) case mix class B, $1.50; 
162.25     (iii) case mix class C, $1.89; 
162.26     (iv) case mix class D, $2.26; 
162.27     (v) case mix class E, $2.63; 
162.28     (vi) case mix class F, $2.65; 
162.29     (vii) case mix class G, $2.96; 
162.30     (viii) case mix class H, $3.55; 
162.31     (ix) case mix class I, $3.76; 
162.32     (x) case mix class J, $4.08; and 
162.33     (xi) case mix class K, $4.76; and 
162.34     (6) a nursing facility in Pine City that decertified 22 
162.35  beds in calendar year 1999 shall have its property-related per 
162.36  diem payment rate increased by $1.59. 
163.1      Sec. 23.  Minnesota Statutes 1998, section 256B.501, is 
163.2   amended by adding a subdivision to read: 
163.3      Subd. 13.  [ICF/MR RATE INCREASES BEGINNING OCTOBER 1, 
163.4   1999, AND OCTOBER 1, 2000.] (a) For the rate years beginning 
163.5   October 1, 1999, and October 1, 2000, the commissioner shall 
163.6   make available to each facility reimbursed under this section, 
163.7   section 256B.5011, and Laws 1993, First Special Session chapter 
163.8   1, article 4, section 11, an adjustment to the total operating 
163.9   payment rate.  For each facility, total operating costs shall be 
163.10  separated into costs that are compensation related and all other 
163.11  costs.  "Compensation-related costs" means the facility's 
163.12  allowable program operating cost category employee training 
163.13  expenses and the facility's allowable salaries, payroll taxes, 
163.14  and fringe benefits.  The term does not include these same 
163.15  salary-related costs for both administrative or central office 
163.16  employees. 
163.17     For the purpose of determining the adjustment to be granted 
163.18  under this subdivision, the commissioner must use the most 
163.19  recent cost report that has been subject to desk audit. 
163.20     (b) For the rate year beginning October 1, 1999, the 
163.21  commissioner shall make available a rate increase for 
163.22  compensation-related costs of 4.6 percent and a rate increase 
163.23  for all other operating costs of 3.2 percent. 
163.24     (c) For the rate year beginning October 1, 2000, the 
163.25  commissioner shall make available: 
163.26     (1) a rate increase for compensation related costs of 6.5 
163.27  percent, 45 percent of which shall be used to increase the 
163.28  per-hour pay rate of all employees except administrative and 
163.29  central office employees by an equal dollar amount and to pay 
163.30  associated costs for FICA, the Medicare tax, workers' 
163.31  compensation premiums, and federal and state unemployment 
163.32  insurance provided that this portion of the compensation-related 
163.33  increase shall be used only for wage increases implemented on or 
163.34  after October 1, 2000, and shall not be used for wage increases 
163.35  implemented prior to that date; and 
163.36     (2) a rate increase for all other operating costs of two 
164.1   percent. 
164.2      (d) For each facility, the commissioner shall determine the 
164.3   payment rate adjustment using the categories specified in 
164.4   paragraph (a) multiplied by the rate increases specified in 
164.5   paragraph (b) or (c), and then dividing the resulting amount by 
164.6   the facility's actual resident days.  
164.7      (e) Any facility whose payment rates are governed by 
164.8   closure agreements, receivership agreements, or Minnesota Rules, 
164.9   part 9553.0075, are not eligible for an adjustment otherwise 
164.10  granted under this subdivision.  
164.11     (f) A facility may apply for the compensation-related 
164.12  payment rate adjustment calculated under this subdivision.  The 
164.13  application must be made to the commissioner and contain a plan 
164.14  by which the facility will distribute the compensation-related 
164.15  portion of the payment rate adjustment to employees of the 
164.16  facility.  For facilities in which the employees are represented 
164.17  by an exclusive bargaining representative, an agreement 
164.18  negotiated and agreed to by the employer and the exclusive 
164.19  bargaining representative constitutes the plan.  For the second 
164.20  rate year, a negotiated agreement may constitute the plan only 
164.21  if the agreement is finalized after the date of enactment of all 
164.22  rate increases for the second rate year.  The commissioner shall 
164.23  review the plan to ensure that the payment rate adjustment per 
164.24  diem is used as provided in this subdivision.  To be eligible, a 
164.25  facility must submit its plan for the compensation distribution 
164.26  by December 31 each year.  A facility may amend its plan for the 
164.27  second rate year by submitting a revised plan by December 31, 
164.28  2000.  If a facility's plan for compensation distribution is 
164.29  effective for its employees after October 1 of the year that the 
164.30  funds are available, the payment rate adjustment per diem shall 
164.31  be effective the same date as its plan. 
164.32     (g) A copy of the approved distribution plan must be made 
164.33  available to all employees.  This must be done by giving each 
164.34  employee a copy or by posting it in an area of the facility to 
164.35  which all employees have access.  If an employee does not 
164.36  receive the compensation adjustment described in their 
165.1   facility's approved plan and is unable to resolve the problem 
165.2   with the facility's management or through the employee's union 
165.3   representative, the employee may contact the commissioner at an 
165.4   address or telephone number provided by the commissioner and 
165.5   included in the approved plan. 
165.6      Sec. 24.  Minnesota Statutes 1999 Supplement, section 
165.7   256B.69, subdivision 5b, is amended to read: 
165.8      Subd. 5b.  [PROSPECTIVE REIMBURSEMENT RATES.] (a) For 
165.9   prepaid medical assistance and general assistance medical care 
165.10  program contract rates set by the commissioner under subdivision 
165.11  5 and effective on or after January 1, 1998, capitation rates 
165.12  for nonmetropolitan counties shall on a weighted average be no 
165.13  less than 88 percent of the capitation rates for metropolitan 
165.14  counties, excluding Hennepin county.  The commissioner shall 
165.15  make a pro rata adjustment in capitation rates paid to counties 
165.16  other than nonmetropolitan counties in order to make this 
165.17  provision budget neutral.  
165.18     (b) For prepaid medical assistance program contract rates 
165.19  set by the commissioner under subdivision 5 and effective on or 
165.20  after January 1, 2001, capitation rates for nonmetropolitan 
165.21  counties shall, on a weighted average, be no less than 89 
165.22  percent of the capitation rates for metropolitan counties, 
165.23  excluding Hennepin county. 
165.24     (c) This subdivision shall not affect the nongeographically 
165.25  based risk adjusted rates established under section 62Q.03, 
165.26  subdivision 5a, paragraph (f). 
165.27     Sec. 25.  Minnesota Statutes 1999 Supplement, section 
165.28  256B.69, subdivision 5c, is amended to read: 
165.29     Subd. 5c.  [MEDICAL EDUCATION AND RESEARCH FUND.] (a) 
165.30  Beginning in January 1999 and each year thereafter: 
165.31     (1) the commissioner of human services shall transfer an 
165.32  amount equal to the reduction in the prepaid medical assistance 
165.33  and prepaid general assistance medical care payments resulting 
165.34  from clause (2), excluding nursing facility and elderly waiver 
165.35  payments and demonstration projects operating under subdivision 
165.36  23, to the medical education and research fund established under 
166.1   section 62J.692; 
166.2      (2) until January 1, 2002, the county medical assistance 
166.3   and general assistance medical care capitation base rate prior 
166.4   to plan specific adjustments and after the regional rate 
166.5   adjustments under section 256B.69, subdivision 5b, shall be 
166.6   reduced 6.3 percent for Hennepin county, two percent for the 
166.7   remaining metropolitan counties, and no reduction for 
166.8   nonmetropolitan Minnesota counties; and after January 1, 2002, 
166.9   the county medical assistance and general assistance medical 
166.10  care capitation base rate prior to plan specific adjustments 
166.11  shall be reduced 6.3 percent for Hennepin county, two percent 
166.12  for the remaining metropolitan counties, and 1.6 percent for 
166.13  nonmetropolitan Minnesota counties; and 
166.14     (3) the amount calculated under clause (1) shall not be 
166.15  adjusted for subsequent changes to the capitation payments for 
166.16  periods already paid.  
166.17     (b) This subdivision shall be effective upon approval of a 
166.18  federal waiver which allows federal financial participation in 
166.19  the medical education and research fund.  
166.20     Sec. 26.  Minnesota Statutes 1998, section 256B.69, 
166.21  subdivision 5d, is amended to read: 
166.22     Subd. 5d.  [MODIFICATION OF PAYMENT DATES EFFECTIVE JANUARY 
166.23  1, 2001.] Effective for services rendered on or after January 1, 
166.24  2001, capitation payments under this section and under section 
166.25  256D.03 for services provided in the month of June shall be made 
166.26  no earlier than the first day after the month of service. 
166.27     Sec. 27.  Minnesota Statutes 1998, section 256L.05, 
166.28  subdivision 5, is amended to read: 
166.29     Subd. 5.  [AVAILABILITY OF PRIVATE INSURANCE.] The 
166.30  commissioner, in consultation with the commissioners of health 
166.31  and commerce, shall provide information regarding the 
166.32  availability of private health insurance coverage and the 
166.33  possibility of disenrollment under section 256L.07, subdivision 
166.34  1, paragraphs (b) and (c), to all:  (1) families and individuals 
166.35  enrolled in the MinnesotaCare program whose gross family income 
166.36  is equal to or more than 200 225 percent of the federal poverty 
167.1   guidelines; and (2) single adults and households without 
167.2   children enrolled in the MinnesotaCare program whose gross 
167.3   family income is equal to or more than 165 percent of the 
167.4   federal poverty guidelines.  This information must be provided 
167.5   upon initial enrollment and annually thereafter.  The 
167.6   commissioner shall also include information regarding the 
167.7   availability of private health insurance coverage in the notice 
167.8   of ineligibility provided to persons subject to disenrollment 
167.9   under section 256L.07, subdivision 1, paragraphs (b) and (c). 
167.10     Sec. 28.  Laws 1997, chapter 225, article 4, section 4, as 
167.11  amended by Laws 1999, chapter 245, article 4, section 104, is 
167.12  amended to read: 
167.13     Sec. 4.  [SENIOR PRESCRIPTION DRUG PROGRAM.] 
167.14     The commissioner shall report to the legislature the 
167.15  estimated costs of the senior prescription drug program without 
167.16  funding caps.  The report shall be included as part of the 
167.17  November and February forecasts. 
167.18     The commissioner of finance shall annually reimburse the 
167.19  general fund with health care access funds for the estimated 
167.20  increased costs in the QMB/SLMB program directly associated with 
167.21  the senior prescription drug program.  This reimbursement shall 
167.22  sunset June 30, 2001. 
167.23     Sec. 29.  Laws 1999, chapter 245, article 1, section 2, 
167.24  subdivision 8, is amended to read: 
167.25  Subd. 8.  Continuing Care and 
167.26  Community Support Grants
167.27  General           1,174,195,000 1,259,767,000
167.28  Lottery Prize         1,158,000     1,158,000
167.29  The amounts that may be spent from this 
167.30  appropriation for each purpose are as 
167.31  follows: 
167.32  (a) Community Social Services
167.33  Block Grants
167.34      42,597,000     43,498,000 
167.35  [CSSA TRADITIONAL APPROPRIATION.] 
167.36  Notwithstanding Minnesota Statutes, 
167.37  section 256E.06, subdivisions 1 and 2, 
167.38  the appropriations available under that 
167.39  section in fiscal years 2000 and 2001 
167.40  must be distributed to each county 
167.41  proportionately to the aid received by 
168.1   the county in calendar year 1998.  The 
168.2   commissioner, in consultation with 
168.3   counties, shall study the formula 
168.4   limitations in subdivision 2 of that 
168.5   section, and report findings and any 
168.6   recommendations for revision of the 
168.7   CSSA formula and its formula limitation 
168.8   provisions to the legislature by 
168.9   January 15, 2000. 
168.10  (b) Consumer Support Grants
168.11       1,123,000      1,123,000 
168.12  (c) Aging Adult Service Grants
168.13       7,965,000      7,765,000 
168.14  [LIVING-AT-HOME/BLOCK NURSE PROGRAM.] 
168.15  Of the general fund appropriation, 
168.16  $120,000 in fiscal year 2000 and 
168.17  $120,000 in fiscal year 2001 is for the 
168.18  commissioner to provide funding to six 
168.19  additional living-at-home/block nurse 
168.20  programs.  This appropriation shall 
168.21  become part of the base for the 
168.22  2002-2003 biennium. 
168.23  [MINNESOTA SENIOR SERVICE CORPS.] Of 
168.24  this appropriation, $160,000 for the 
168.25  biennium is from the general fund to 
168.26  the commissioner for the following 
168.27  purposes: 
168.28  (a) $40,000 in fiscal year 2000 and 
168.29  $40,000 in fiscal year 2001 is to 
168.30  increase the hourly stipend by ten 
168.31  cents per hour in the foster 
168.32  grandparent program, the retired and 
168.33  senior volunteer program, and the 
168.34  senior companion program. 
168.35  (b) $40,000 in fiscal year 2000 and 
168.36  $40,000 in fiscal year 2001 is for a 
168.37  grant to the tri-valley opportunity 
168.38  council in Crookston to expand services 
168.39  in the ten-county area of northwestern 
168.40  Minnesota. 
168.41  (c) This appropriation shall become 
168.42  part of the base for the 2002-2003 
168.43  biennium.
168.44  [HEALTH INSURANCE COUNSELING.] Of this 
168.45  appropriation, $100,000 in fiscal year 
168.46  2000 and $100,000 in fiscal year 2001 
168.47  is from the general fund to the 
168.48  commissioner to transfer to the board 
168.49  on aging for the purpose of awarding 
168.50  health insurance counseling and 
168.51  assistance grants to the area agencies 
168.52  on aging providing state-funded health 
168.53  insurance counseling services.  Access 
168.54  to health insurance counseling programs 
168.55  shall be provided by the senior linkage 
168.56  line service of the board on aging and 
168.57  the area agencies on aging. The board 
168.58  on aging shall explore opportunities 
168.59  for obtaining alternative funding from 
168.60  nonstate sources, including 
168.61  contributions from individuals seeking 
169.1   health insurance counseling services.  
169.2   This is a one-time appropriation and 
169.3   shall not become part of base level 
169.4   funding for this activity for the 
169.5   2002-2003 biennium. 
169.6   (d) Deaf and Hard-of-Hearing 
169.7   Services Grants
169.8        1,859,000      1,760,000 
169.9   [SERVICES TO DEAF PERSONS WITH MENTAL 
169.10  ILLNESS.] Of this appropriation, 
169.11  $100,000 each year is to the 
169.12  commissioner for a grant to a nonprofit 
169.13  agency that currently serves deaf and 
169.14  hard-of-hearing adults with mental 
169.15  illness through residential programs 
169.16  and supported housing outreach.  The 
169.17  grant must be used to operate a 
169.18  community support program for persons 
169.19  with mental illness that is 
169.20  communicatively accessible for persons 
169.21  who are deaf or hard-of-hearing.  This 
169.22  is a one-time appropriation and shall 
169.23  not become part of base level funding 
169.24  for this activity for the 2002-2003 
169.25  biennium. 
169.26  [DEAF-BLIND ORIENTATION AND MOBILITY 
169.27  SERVICES.] Of this appropriation, 
169.28  $120,000 for the biennium is to the 
169.29  commissioner for a grant to DeafBlind 
169.30  Services Minnesota to hire an 
169.31  orientation and, mobility, and 
169.32  deaf-blind specialist to work with 
169.33  deaf-blind people and for related 
169.34  costs.  The specialist will provide 
169.35  services to deaf-blind Minnesotans, and 
169.36  training to teachers and rehabilitation 
169.37  counselors, on a statewide basis.  This 
169.38  is a one-time appropriation and shall 
169.39  not become part of base level funding 
169.40  for this activity for the 2002-2003 
169.41  biennium.  Notwithstanding section 13, 
169.42  this paragraph expires on June 30, 2003.
169.43  (e) Mental Health Grants
169.44  General          45,169,000     46,528,000 
169.45  Lottery Prize     1,158,000      1,158,000 
169.46  [CRISIS HOUSING.] Of the general fund 
169.47  appropriation, $126,000 in fiscal year 
169.48  2000 and $150,000 in fiscal year 2001 
169.49  is to the commissioner for the adult 
169.50  mental illness crisis housing 
169.51  assistance program under Minnesota 
169.52  Statutes, section 245.99.  This 
169.53  appropriation shall become part of the 
169.54  base for the 2002-2003 biennium. 
169.55  [ADOLESCENT COMPULSIVE GAMBLING GRANT.] 
169.56  $150,000 in fiscal year 2000 and 
169.57  $150,000 in fiscal year 2001 is 
169.58  appropriated from the lottery prize 
169.59  fund created under Minnesota Statutes, 
169.60  section 349A.10, subdivision 2, to the 
169.61  commissioner for the purposes of a 
169.62  grant to a compulsive gambling council 
170.1   located in St. Louis county for a 
170.2   statewide compulsive gambling 
170.3   prevention and education project for 
170.4   adolescents. 
170.5   (f) Developmental Disabilities
170.6   Community Support Grants
170.7      9,323,000     10,958,000 
170.8   [CRISIS INTERVENTION PROJECT.] Of this 
170.9   appropriation, $40,000 in fiscal year 
170.10  2000 is to the commissioner for the 
170.11  action, support, and prevention project 
170.12  of southeastern Minnesota. 
170.13  [SILS FUNDING.] Of this appropriation, 
170.14  $1,000,000 each year is for 
170.15  semi-independent living services under 
170.16  Minnesota Statutes, section 252.275. 
170.17  This appropriation must be added to the 
170.18  base level funding for this activity 
170.19  for the 2002-2003 biennium.  Unexpended 
170.20  funds for fiscal year 2000 do not 
170.21  cancel but are available to the 
170.22  commissioner for this purpose in fiscal 
170.23  year 2001. 
170.24  [FAMILY SUPPORT GRANTS.] Of this 
170.25  appropriation, $1,000,000 in fiscal 
170.26  year 2000 and $2,500,000 in fiscal year 
170.27  2001 is to increase the availability of 
170.28  family support grants under Minnesota 
170.29  Statutes, section 252.32.  This 
170.30  appropriation must be added to the base 
170.31  level funding for this activity for the 
170.32  2002-2003 biennium.  Unexpended funds 
170.33  for fiscal year 2000 do not cancel but 
170.34  are available to the commissioner for 
170.35  this purpose in fiscal year 2001. 
170.36  (g) Medical Assistance Long-Term 
170.37  Care Waivers and Home Care
170.38     349,052,000    414,240,000 
170.39  [PROVIDER RATE INCREASES.] (a) The 
170.40  commissioner shall increase 
170.41  reimbursement rates by four percent the 
170.42  first year of the biennium and by three 
170.43  5.9 percent the second year for the 
170.44  providers listed in paragraph (b).  The 
170.45  increases shall be effective for 
170.46  services rendered on or after July 1 of 
170.47  each year. 
170.48  (b) The rate increases described in 
170.49  this section shall be provided to home 
170.50  and community-based waivered services 
170.51  for persons with mental retardation or 
170.52  related conditions under Minnesota 
170.53  Statutes, section 256B.501; home and 
170.54  community-based waivered services for 
170.55  the elderly under Minnesota Statutes, 
170.56  section 256B.0915; waivered services 
170.57  under community alternatives for 
170.58  disabled individuals under Minnesota 
170.59  Statutes, section 256B.49; community 
170.60  alternative care waivered services 
170.61  under Minnesota Statutes, section 
170.62  256B.49; traumatic brain injury 
171.1   waivered services under Minnesota 
171.2   Statutes, section 256B.49; nursing 
171.3   services and home health services under 
171.4   Minnesota Statutes, section 256B.0625, 
171.5   subdivision 6a; personal care services 
171.6   and nursing supervision of personal 
171.7   care services under Minnesota Statutes, 
171.8   section 256B.0625, subdivision 19a; 
171.9   private-duty nursing services under 
171.10  Minnesota Statutes, section 256B.0625, 
171.11  subdivision 7; day training and 
171.12  habilitation services for adults with 
171.13  mental retardation or related 
171.14  conditions under Minnesota Statutes, 
171.15  sections 252.40 to 252.46; alternative 
171.16  care services under Minnesota Statutes, 
171.17  section 256B.0913; adult residential 
171.18  program grants under Minnesota Rules, 
171.19  parts 9535.2000 to 9535.3000; adult and 
171.20  family community support grants under 
171.21  Minnesota Rules, parts 9535.1700 to 
171.22  9535.1760; semi-independent living 
171.23  services under Minnesota Statutes, 
171.24  section 252.275, including SILS funding 
171.25  under county social services grants 
171.26  formerly funded under Minnesota 
171.27  Statutes, chapter 256I; and community 
171.28  support services for deaf and 
171.29  hard-of-hearing adults with mental 
171.30  illness who use or wish to use sign 
171.31  language as their primary means of 
171.32  communication. 
171.33  (c) The commissioner shall increase 
171.34  reimbursement rates by two percent for 
171.35  the group residential housing 
171.36  supplementary service rate under 
171.37  Minnesota Statutes, section 256I.05, 
171.38  subdivision 1a, for services rendered 
171.39  on or after January 1, 2000. 
171.40  (d) Providers that receive a rate 
171.41  increase under this section shall use 
171.42  at least 80 percent of the additional 
171.43  revenue the first year to increase the 
171.44  compensation paid to employees other 
171.45  than the administrator and central 
171.46  office staff.  In the second year, 
171.47  providers must use the additional 
171.48  revenue as follows: 
171.49  (1) at least 41 percent to increase the 
171.50  compensation paid to employees other 
171.51  than the administrator and central 
171.52  office staff; 
171.53  (2) at least 49 percent to increase the 
171.54  per-hour pay rate of all employees 
171.55  other than the administrator and 
171.56  central office staff by an equal dollar 
171.57  amount and to pay associated costs for 
171.58  FICA, the Medicare tax, workers' 
171.59  compensation premiums, and federal and 
171.60  state unemployment insurance.  For 
171.61  public employees, the portion of this 
171.62  increase reserved to increase the 
171.63  per-hour pay rate for certain staff by 
171.64  an equal dollar amount shall be 
171.65  available and pay rates shall be 
171.66  increased only to the extent that they 
171.67  comply with laws governing public 
172.1   employees collective bargaining.  Money 
172.2   received by a provider as a result of 
172.3   the additional rate increase described 
172.4   in this clause shall be used only for 
172.5   wage increases implemented on or after 
172.6   July 1, 2000, and shall not be used for 
172.7   wage increases implemented prior to 
172.8   that date; and 
172.9   (3) up to ten percent for other 
172.10  purposes. 
172.11  (e) A copy of the provider's plan for 
172.12  complying with paragraph (d) must be 
172.13  made available to all employees.  This 
172.14  must be done by giving each employee a 
172.15  copy or by posting it in an area of the 
172.16  provider's operation to which all 
172.17  employees have access.  If an employee 
172.18  does not receive the salary adjustment 
172.19  described in the plan and is unable to 
172.20  resolve the problem with the provider, 
172.21  the employee may contact the employee's 
172.22  union representative.  If the employee 
172.23  is not covered by a collective 
172.24  bargaining agreement, the employee may 
172.25  contact the commissioner at a phone 
172.26  number provided by the commissioner and 
172.27  included in the provider's plan. 
172.28  (f) Section 13, sunset of uncodified 
172.29  language, does not apply to this 
172.30  provision. 
172.31  [DEVELOPMENTAL DISABILITIES WAIVER 
172.32  SLOTS.] Of this appropriation, 
172.33  $1,746,000 in fiscal year 2000 and 
172.34  $4,683,000 in fiscal year 2001 is to 
172.35  increase the availability of home and 
172.36  community-based waiver services for 
172.37  persons with mental retardation or 
172.38  related conditions.  
172.39  (h) Medical Assistance Long-Term
172.40  Care Facilities
172.41     546,228,000    558,349,000 
172.42  [MORATORIUM EXCEPTIONS.] Of this 
172.43  appropriation, $250,000 in fiscal year 
172.44  2000 and $250,000 in fiscal year 2001 
172.45  is from the general fund to the 
172.46  commissioner for the medical assistance 
172.47  costs of moratorium exceptions approved 
172.48  by the commissioner of health under 
172.49  Minnesota Statutes, section 144A.073.  
172.50  Unexpended money appropriated for 
172.51  fiscal year 2000 shall not cancel but 
172.52  shall be available for fiscal year 2001.
172.53  [NURSING FACILITY OPERATED BY THE RED 
172.54  LAKE BAND OF CHIPPEWA INDIANS.] (1) The 
172.55  medical assistance payment rates for 
172.56  the 47-bed nursing facility operated by 
172.57  the Red Lake Band of Chippewa Indians 
172.58  must be calculated according to 
172.59  allowable reimbursement costs under the 
172.60  medical assistance program, as 
172.61  specified in Minnesota Statutes, 
172.62  section 246.50, and are subject to the 
172.63  facility-specific Medicare upper limits.
173.1   (2) In addition, the commissioner shall 
173.2   make available an operating payment 
173.3   rate adjustment effective July 1, 1999, 
173.4   and July 1, 2000, that is equal to the 
173.5   adjustment provided under Minnesota 
173.6   Statutes, section 256B.431, subdivision 
173.7   28.  The commissioner must use the 
173.8   facility's final 1998 and 1999 Medicare 
173.9   cost reports, respectively, to 
173.10  calculate the adjustment.  The 
173.11  adjustment shall be available based on 
173.12  a plan submitted and approved according 
173.13  to Minnesota Statutes, section 
173.14  256B.431, subdivision 28.  Section 13, 
173.15  sunset of uncodified language, does not 
173.16  apply to this paragraph. 
173.17  [COSTS RELATED TO FACILITY 
173.18  CERTIFICATION.] Of this appropriation, 
173.19  $168,000 is for the costs of providing 
173.20  one-half the state share of medical 
173.21  assistance reimbursement for 
173.22  residential and day habilitation 
173.23  services under article 3, section 39.  
173.24  This amount is available the day 
173.25  following final enactment. 
173.26  (i) Alternative Care Grants  
173.27  General              60,873,000    59,981,000
173.28  [ALTERNATIVE CARE TRANSFER.] Any money 
173.29  allocated to the alternative care 
173.30  program that is not spent for the 
173.31  purposes indicated does not cancel but 
173.32  shall be transferred to the medical 
173.33  assistance account. 
173.34  [PREADMISSION SCREENING AMOUNT.] The 
173.35  preadmission screening payment to all 
173.36  counties shall continue at the payment 
173.37  amount in effect for fiscal year 1999. 
173.38  [ALTERNATIVE CARE APPROPRIATION.] The 
173.39  commissioner may expend the money 
173.40  appropriated for the alternative care 
173.41  program for that purpose in either year 
173.42  of the biennium. 
173.43  (j) Group Residential Housing
173.44  General              66,477,000    70,390,000
173.45  [GROUP RESIDENTIAL FACILITY FOR WOMEN 
173.46  IN RAMSEY COUNTY.] (a) Notwithstanding 
173.47  Minnesota Statutes 1998, section 
173.48  256I.05, subdivision 1d, the new 23-bed 
173.49  group residential facility for women in 
173.50  Ramsey county, with approval by the 
173.51  county agency, may negotiate a 
173.52  supplementary service rate in addition 
173.53  to the board and lodging rate for 
173.54  facilities licensed and registered by 
173.55  the Minnesota department of health 
173.56  under Minnesota Statutes, section 
173.57  15.17.  The supplementary service rate 
173.58  shall not exceed $564 per person per 
173.59  month and the total rate may not exceed 
173.60  $1,177 per person per month. 
173.61  (b) Of the general fund appropriation, 
174.1   $19,000 in fiscal year 2000 and $38,000 
174.2   in fiscal year 2001 is to the 
174.3   commissioner for the costs associated 
174.4   with paragraph (a).  This appropriation 
174.5   shall become part of the base for the 
174.6   2002-2003 biennium. 
174.7   (k) Chemical Dependency
174.8   Entitlement Grants
174.9   General              36,751,000    38,847,000
174.10  (l) Chemical Dependency 
174.11  Nonentitlement Grants
174.12  General               6,778,000     6,328,000
174.13  [CHEMICAL DEPENDENCY SERVICES.] Of this 
174.14  appropriation, $450,000 in fiscal year 
174.15  2000 is to the commissioner for 
174.16  chemical dependency services to persons 
174.17  who qualify under Minnesota Statutes, 
174.18  section 254B.04, subdivision 1, 
174.19  paragraph (b). 
174.20     Sec. 30.  Laws 1999, chapter 245, article 10, section 10, 
174.21  is amended to read: 
174.22     Sec. 10.  [REPEALER.] 
174.23     (a) Minnesota Statutes 1998, section 256.973, is 
174.24  repealed effective June 30, 2001 2002. 
174.25     (b) Laws 1997, chapter 225, article 6, section 8, is 
174.26  repealed. 
174.27     Sec. 31.  [EMPLOYER-BASED HEALTH INSURANCE.] 
174.28     Subdivision 1.  [FEDERAL MATCHING FUNDS.] The commissioner 
174.29  of human services shall determine requirements necessary to 
174.30  obtain federal matching funds for payment of a direct subsidy 
174.31  for the employee share of employer-based health care coverage 
174.32  that is available to dependent children of employees with 
174.33  household incomes that do not exceed 200 percent of the federal 
174.34  poverty guidelines. 
174.35     Subd. 2.  [REPORT.] The commissioner shall report to the 
174.36  legislature by January 15, 2001, on the parameters and status of 
174.37  the federal requirements described in subdivision 1, after 
174.38  consultation with the commissioners of health and commerce and 
174.39  with representatives of large and small employers, including 
174.40  rural business purchasing alliances.  In the report, the 
174.41  commissioner shall make recommendations on how best to provide 
174.42  direct subsidies for employer-based health care coverage for 
175.1   dependent children of employees with household incomes that do 
175.2   not exceed 200 percent of the federal poverty guidelines.  The 
175.3   commissioner shall report the optimal way to meet the needs of 
175.4   the dependent children in a manner that does not:  (1) require 
175.5   modifications to existing or future employer-based health care 
175.6   coverage; or (2) create incentives for employers to utilize 
175.7   publicly subsidized health care. 
175.8      Sec. 32.  [INFORMATION ON PRESCRIPTION DRUG PATIENT 
175.9   ASSISTANCE AND COST SAVINGS PROGRAMS.] 
175.10     The commissioner of human services must work with the board 
175.11  of medical practice, organizations representing pharmaceutical 
175.12  manufacturers, and organizations representing pharmacies, to 
175.13  develop a strategy to provide information to all physicians and 
175.14  pharmacists on prescription drug patient assistance programs and 
175.15  cost savings opportunities offered by pharmaceutical 
175.16  manufacturers.  Any strategy developed must provide physicians 
175.17  and pharmacists with regular updates on prescription drug 
175.18  patient assistance programs and cost savings opportunities and 
175.19  be implemented without cost to physicians, pharmacists, or the 
175.20  state. 
175.21     Sec. 33.  [TASK FORCE EXTENDED; REPORT.] 
175.22     The day training and habilitation task force established 
175.23  under Laws 1999, chapter 152, shall be extended to June 15, 
175.24  2001.  The task force shall present a report recommending a new 
175.25  payment rate schedule for day training and habilitation services 
175.26  to the legislature by January 15, 2001. 
175.27     <b>EFFECTIVE DATE:</b>  This section is effective the day 
175.28  following final enactment. 
175.29     Sec. 34.  [RESPITE CARE FOR FAMILY ADULT FOSTER CARE 
175.30  PROVIDERS.] 
175.31     The commissioner of human services, in consultation with 
175.32  affected groups, including counties, family adult foster care 
175.33  providers, guardians and family members, and advocacy agencies, 
175.34  shall develop legislative proposals, including cost projections, 
175.35  to provide 30 days of respite care per year for family adult 
175.36  foster care providers.  The proposals must include funding 
176.1   options that rely upon federal and state funding.  The 
176.2   commissioner shall provide the legislative proposals and cost 
176.3   projections to the chairs of the house health and human services 
176.4   policy committee, the house health and human services finance 
176.5   committee, the senate health and family security policy 
176.6   committee, and the senate health and family security budget 
176.7   division, by December 1, 2000. 
176.8      Sec. 35.  [MEDICAL EDUCATION DISTRIBUTION FORMULA STUDY.] 
176.9      The commissioner of health shall convene a group of 
176.10  stakeholders that includes representatives of teaching programs 
176.11  and training sites throughout the state and members of the 
176.12  medical education and research advisory committee for the 
176.13  purpose of evaluating the appropriateness of the current 
176.14  distribution formula and considering alternatives for allocating 
176.15  the amount transferred in accordance with Minnesota Statutes, 
176.16  section 256B.69, subdivision 5c.  The commissioner shall report 
176.17  the findings and recommendations of this group to the 
176.18  legislature by January 15, 2001. 
176.19     Sec. 36.  [INSTRUCTION TO REVISOR.] 
176.20     (a) The revisor of statutes shall change the phrase "senior 
176.21  citizen drug program" wherever it appears in the next edition of 
176.22  Minnesota Statutes and Minnesota Rules to "prescription drug 
176.23  program." 
176.24     (b) The revisor, in the next edition of Minnesota Statutes, 
176.25  shall recodify section 256.9751 as section 256.9731, and make 
176.26  any necessary changes in cross-references. 
176.27     Sec. 37.  [INCONSISTENT AMENDMENTS.] 
176.28     The amendments to Minnesota Statutes, section 256B.501, 
176.29  subdivision 13, in section 10 prevail over the amendments to 
176.30  that section in 2000 H.F. No. 3557, if enacted. 
176.31                             ARTICLE 10
176.32          HUMAN SERVICES ASSISTANCE PROGRAM MODIFICATIONS 
176.33     Section 1.  Minnesota Statutes 1999 Supplement, section 
176.34  119B.011, subdivision 15, is amended to read: 
176.35     Subd. 15.  [INCOME.] "Income" means earned or unearned 
176.36  income received by all family members, including public 
177.1   assistance cash benefits and at-home infant care subsidy 
177.2   payments, unless specifically excluded and child support and 
177.3   maintenance distributed to the family under section 256.741, 
177.4   subdivision 15.  The following are excluded from income:  funds 
177.5   used to pay for health insurance premiums for family members, 
177.6   Supplemental Security Income, scholarships, work-study income, 
177.7   and grants that cover costs or reimbursement for tuition, fees, 
177.8   books, and educational supplies; student loans for tuition, 
177.9   fees, books, supplies, and living expenses; state and federal 
177.10  earned income tax credits; in-kind income such as food stamps, 
177.11  energy assistance, foster care assistance, medical assistance, 
177.12  child care assistance, and housing subsidies; earned income of 
177.13  full or part-time students, who have not earned a high school 
177.14  diploma or GED high school equivalency diploma including 
177.15  earnings from summer employment; grant awards under the family 
177.16  subsidy program; nonrecurring lump sum income only to the extent 
177.17  that it is earmarked and used for the purpose for which it is 
177.18  paid; and any income assigned to the public authority according 
177.19  to section 256.74 or 256.741. 
177.20     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
177.21     Sec. 2.  Minnesota Statutes 1998, section 256.01, is 
177.22  amended by adding a subdivision to read: 
177.23     Subd. 18.  [IMMIGRATION STATUS 
177.24  VERIFICATIONS.] Notwithstanding any waiver of this requirement 
177.25  by the secretary of the United States Department of Health and 
177.26  Human Services, effective July 1, 2001, the commissioner shall 
177.27  utilize the Systematic Alien Verification for Entitlements 
177.28  (SAVE) program to conduct immigration status verifications: 
177.29     (1) as required under United States Code, title 8, section 
177.30  1642; 
177.31     (2) for all applicants for food assistance benefits, 
177.32  whether under the federal food stamp program, the MFIP or work 
177.33  first program, or the Minnesota food assistance program; 
177.34     (3) for all applicants for general assistance medical care, 
177.35  except assistance for an emergency medical condition, for 
177.36  immunization with respect to an immunizable disease, or for 
178.1   testing and treatment of symptoms of a communicable disease; and 
178.2      (4) for all applicants for general assistance, Minnesota 
178.3   supplemental aid, MinnesotaCare, or group residential housing, 
178.4   when the benefits provided by these programs would fall under 
178.5   the definition of "federal public benefit" under United States 
178.6   Code, title 8, section 1642, if federal funds were used to pay 
178.7   for all or part of the benefits.  
178.8      The commissioner shall report to the Immigration and 
178.9   Naturalization Service all undocumented persons who have been 
178.10  identified through application verification procedures or by the 
178.11  self-admission of an applicant for assistance.  Reports made 
178.12  under this subdivision must comply with the requirements of 
178.13  section 411A of the Social Security Act, as amended, and United 
178.14  States Code, title 8, section 1644. 
178.15     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
178.16  256.019, is amended to read: 
178.17     256.019 [RECOVERY OF MONEY; APPORTIONMENT.] 
178.18     Subdivision 1.  [RETENTION RATES.] When an assistance 
178.19  recovery amount is recovered from any source for assistance 
178.20  given collected and posted by a county agency under the 
178.21  provisions governing public assistance programs including the 
178.22  aid to families with dependent children program formerly 
178.23  codified in sections 256.72 to 256.87, MFIP, general assistance 
178.24  medical care, emergency assistance, general assistance, and 
178.25  Minnesota supplemental aid, the county may keep one-half of the 
178.26  recovery made by the county agency using any method other than 
178.27  recoupment.  For medical assistance, if the recovery is made by 
178.28  a county agency using any method other than recoupment, the 
178.29  county may keep one-half of the nonfederal share of the recovery.
178.30     This does not apply to recoveries from medical providers or 
178.31  to recoveries begun by the department of human services' 
178.32  surveillance and utilization review division, state hospital 
178.33  collections unit, and the benefit recoveries division or, by the 
178.34  attorney general's office, or child support collections.  In the 
178.35  food stamp program, the nonfederal share of recoveries in the 
178.36  federal tax refund offset program (FTROP) only will be divided 
179.1   equally between the state agency and the involved county agency. 
179.2      Subd. 2.  [RETENTION RATES FOR AFDC AND MFIP.] (a) When an 
179.3   assistance recovery amount is collected and posted by a county 
179.4   agency under the provisions governing the aid to families with 
179.5   dependent children program formerly codified in 1996 in sections 
179.6   256.72 to 256.87 or MFIP under chapter 256J, the commissioner 
179.7   shall reimburse the county agency from the proceeds of the 
179.8   recovery using the applicable rate specified in paragraph (b) or 
179.9   (c). 
179.10     (b) For recoveries of overpayments made on or before 
179.11  September 30, 1996, from the aid to families with dependent 
179.12  children program including the emergency assistance program, the 
179.13  commissioner shall reimburse the county agency at a rate of 
179.14  one-quarter of the recovery made by any method other than 
179.15  recoupment. 
179.16     (c) For recoveries of overpayments made after September 30, 
179.17  1996, from the aid to families with dependent children including 
179.18  the emergency assistance program and programs funded in whole or 
179.19  in part by the temporary assistance to needy families program 
179.20  under section 256J.02, subdivision 2, and recoveries of 
179.21  nonfederally funded food assistance under section 256J.11, the 
179.22  commissioner shall reimburse the county agency at a rate of 
179.23  one-quarter of the recovery made by any method other than 
179.24  recoupment. 
179.25     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
179.26     Sec. 4.  Minnesota Statutes 1998, section 256.741, is 
179.27  amended by adding a subdivision to read: 
179.28     Subd. 15.  [CHILD SUPPORT DISTRIBUTION.] The state shall 
179.29  distribute current child support and maintenance received by the 
179.30  state to an individual who assigns the right to that support 
179.31  under subdivision 2, paragraph (a). 
179.32     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
179.33     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
179.34  256D.053, subdivision 1, is amended to read: 
179.35     Subdivision 1.  [PROGRAM ESTABLISHED.] The Minnesota food 
179.36  assistance program is established to provide food assistance to 
180.1   legal noncitizens residing in this state who are ineligible to 
180.2   participate in the federal Food Stamp Program solely due to the 
180.3   provisions of section 402 or 403 of Public Law Number 104-193, 
180.4   as authorized by Title VII of the 1997 Emergency Supplemental 
180.5   Appropriations Act, Public Law Number 105-18, and as amended by 
180.6   Public Law Number 105-185. 
180.7      Beginning July 1, 2000 2002, the Minnesota food assistance 
180.8   program is limited to those noncitizens described in this 
180.9   subdivision who are 50 years of age or older. 
180.10     Sec. 6.  Minnesota Statutes 1999 Supplement, section 
180.11  256J.02, subdivision 2, is amended to read: 
180.12     Subd. 2.  [USE OF MONEY.] State money appropriated for 
180.13  purposes of this section and TANF block grant money must be used 
180.14  for: 
180.15     (1) financial assistance to or on behalf of any minor child 
180.16  who is a resident of this state under section 256J.12; 
180.17     (2) employment and training services under this chapter or 
180.18  chapter 256K; 
180.19     (3) emergency financial assistance and services under 
180.20  section 256J.48; 
180.21     (4) diversionary assistance under section 256J.47; 
180.22     (5) the health care and human services training and 
180.23  retention program under chapter 116L, for costs associated with 
180.24  families with children with incomes below 200 percent of the 
180.25  federal poverty guidelines; 
180.26     (6) the pathways program under section 116L.04, subdivision 
180.27  1a; 
180.28     (7) welfare-to-work extended employment services for MFIP 
180.29  participants with severe impairment to employment as defined in 
180.30  section 268A.15, subdivision 1a; 
180.31     (8) the family homeless prevention and assistance program 
180.32  under section 462A.204; 
180.33     (9) the rent assistance for family stabilization 
180.34  demonstration project under section 462A.205; and 
180.35     (10) welfare to work transportation authorized under Public 
180.36  Law Number 105-178; 
181.1      (11) reimbursements for the federal share of child support 
181.2   collections passed through to the custodial parent; 
181.3      (12) reimbursements for the working family credit under 
181.4   section 290.0671; 
181.5      (13) intensive ESL grants under 2000 H.F. No. 3800, article 
181.6   1, if enacted; 
181.7      (14) transitional housing programs under section 119A.43; 
181.8      (15) programs and pilot projects under chapter 256K; and 
181.9      (16) program administration under this chapter. 
181.10     <b>EFFECTIVE DATE:</b>  Clause (11) of this section is effective 
181.11  January 1, 2001. 
181.12     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
181.13  256J.08, subdivision 86, is amended to read: 
181.14     Subd. 86.  [UNEARNED INCOME.] "Unearned income" means 
181.15  income received by a person that does not meet the definition of 
181.16  earned income.  Unearned income includes income from a contract 
181.17  for deed, interest, dividends, reemployment compensation, 
181.18  disability insurance payments, veterans benefits, pension 
181.19  payments, return on capital investment, insurance payments or 
181.20  settlements, severance payments, child support and maintenance 
181.21  payments, and payments for illness or disability whether the 
181.22  premium payments are made in whole or in part by an employer or 
181.23  participant. 
181.24     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
181.25     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
181.26  256J.21, subdivision 2, is amended to read: 
181.27     Subd. 2.  [INCOME EXCLUSIONS.] (a) The following must be 
181.28  excluded in determining a family's available income: 
181.29     (1) payments for basic care, difficulty of care, and 
181.30  clothing allowances received for providing family foster care to 
181.31  children or adults under Minnesota Rules, parts 9545.0010 to 
181.32  9545.0260 and 9555.5050 to 9555.6265, and payments received and 
181.33  used for care and maintenance of a third-party beneficiary who 
181.34  is not a household member; 
181.35     (2) reimbursements for employment training received through 
181.36  the Job Training Partnership Act, United States Code, title 29, 
182.1   chapter 19, sections 1501 to 1792b; 
182.2      (3) reimbursement for out-of-pocket expenses incurred while 
182.3   performing volunteer services, jury duty, employment, or 
182.4   informal carpooling arrangements directly related to employment; 
182.5      (4) all educational assistance, except the county agency 
182.6   must count graduate student teaching assistantships, 
182.7   fellowships, and other similar paid work as earned income and, 
182.8   after allowing deductions for any unmet and necessary 
182.9   educational expenses, shall count scholarships or grants awarded 
182.10  to graduate students that do not require teaching or research as 
182.11  unearned income; 
182.12     (5) loans, regardless of purpose, from public or private 
182.13  lending institutions, governmental lending institutions, or 
182.14  governmental agencies; 
182.15     (6) loans from private individuals, regardless of purpose, 
182.16  provided an applicant or participant documents that the lender 
182.17  expects repayment; 
182.18     (7)(i) state income tax refunds; and 
182.19     (ii) federal income tax refunds; 
182.20     (8)(i) federal earned income credits; 
182.21     (ii) Minnesota working family credits; 
182.22     (iii) state homeowners and renters credits under chapter 
182.23  290A; and 
182.24     (iv) federal or state tax rebates; 
182.25     (9) funds received for reimbursement, replacement, or 
182.26  rebate of personal or real property when these payments are made 
182.27  by public agencies, awarded by a court, solicited through public 
182.28  appeal, or made as a grant by a federal agency, state or local 
182.29  government, or disaster assistance organizations, subsequent to 
182.30  a presidential declaration of disaster; 
182.31     (10) the portion of an insurance settlement that is used to 
182.32  pay medical, funeral, and burial expenses, or to repair or 
182.33  replace insured property; 
182.34     (11) reimbursements for medical expenses that cannot be 
182.35  paid by medical assistance; 
182.36     (12) payments by a vocational rehabilitation program 
183.1   administered by the state under chapter 268A, except those 
183.2   payments that are for current living expenses; 
183.3      (13) in-kind income, including any payments directly made 
183.4   by a third party to a provider of goods and services; 
183.5      (14) assistance payments to correct underpayments, but only 
183.6   for the month in which the payment is received; 
183.7      (15) emergency assistance payments; 
183.8      (16) funeral and cemetery payments as provided by section 
183.9   256.935; 
183.10     (17) nonrecurring cash gifts of $30 or less, not exceeding 
183.11  $30 per participant in a calendar month; 
183.12     (18) any form of energy assistance payment made through 
183.13  Public Law Number 97-35, Low-Income Home Energy Assistance Act 
183.14  of 1981, payments made directly to energy providers by other 
183.15  public and private agencies, and any form of credit or rebate 
183.16  payment issued by energy providers; 
183.17     (19) Supplemental Security Income, including retroactive 
183.18  payments; 
183.19     (20) Minnesota supplemental aid, including retroactive 
183.20  payments; 
183.21     (21) proceeds from the sale of real or personal property; 
183.22     (22) adoption assistance payments under section 259.67; 
183.23     (23) state-funded family subsidy program payments made 
183.24  under section 252.32 to help families care for children with 
183.25  mental retardation or related conditions, consumer support grant 
183.26  funds under section 256.476, and resources and services for a 
183.27  disabled household member under one of the home and 
183.28  community-based waiver services programs under chapter 256B; 
183.29     (24) interest payments and dividends from property that is 
183.30  not excluded from and that does not exceed the asset limit; 
183.31     (25) rent rebates; 
183.32     (26) income earned by a minor caregiver, minor child 
183.33  through age 6, or a minor child who is at least a half-time 
183.34  student in an approved elementary or secondary education 
183.35  program; 
183.36     (27) income earned by a caregiver under age 20 who is at 
184.1   least a half-time student in an approved elementary or secondary 
184.2   education program; 
184.3      (28) MFIP child care payments under section 119B.05; 
184.4      (29) all other payments made through MFIP to support a 
184.5   caregiver's pursuit of greater self-support; 
184.6      (30) income a participant receives related to shared living 
184.7   expenses; 
184.8      (31) reverse mortgages; 
184.9      (32) benefits provided by the Child Nutrition Act of 1966, 
184.10  United States Code, title 42, chapter 13A, sections 1771 to 
184.11  1790; 
184.12     (33) benefits provided by the women, infants, and children 
184.13  (WIC) nutrition program, United States Code, title 42, chapter 
184.14  13A, section 1786; 
184.15     (34) benefits from the National School Lunch Act, United 
184.16  States Code, title 42, chapter 13, sections 1751 to 1769e; 
184.17     (35) relocation assistance for displaced persons under the 
184.18  Uniform Relocation Assistance and Real Property Acquisition 
184.19  Policies Act of 1970, United States Code, title 42, chapter 61, 
184.20  subchapter II, section 4636, or the National Housing Act, United 
184.21  States Code, title 12, chapter 13, sections 1701 to 1750jj; 
184.22     (36) benefits from the Trade Act of 1974, United States 
184.23  Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
184.24     (37) war reparations payments to Japanese Americans and 
184.25  Aleuts under United States Code, title 50, sections 1989 to 
184.26  1989d; 
184.27     (38) payments to veterans or their dependents as a result 
184.28  of legal settlements regarding Agent Orange or other chemical 
184.29  exposure under Public Law Number 101-239, section 10405, 
184.30  paragraph (a)(2)(E); 
184.31     (39) income that is otherwise specifically excluded from 
184.32  MFIP consideration in federal law, state law, or federal 
184.33  regulation; 
184.34     (40) security and utility deposit refunds; 
184.35     (41) American Indian tribal land settlements excluded under 
184.36  Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 
185.1   Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
185.2   reservations and payments to members of the White Earth Band, 
185.3   under United States Code, title 25, chapter 9, section 331, and 
185.4   chapter 16, section 1407; 
185.5      (42) all income of the minor parent's parents and 
185.6   stepparents when determining the grant for the minor parent in 
185.7   households that include a minor parent living with parents or 
185.8   stepparents on MFIP with other children; and 
185.9      (43) income of the minor parent's parents and stepparents 
185.10  equal to 200 percent of the federal poverty guideline for a 
185.11  family size not including the minor parent and the minor 
185.12  parent's child in households that include a minor parent living 
185.13  with parents or stepparents not on MFIP when determining the 
185.14  grant for the minor parent.  The remainder of income is deemed 
185.15  as specified in section 256J.37, subdivision 1b; 
185.16     (44) payments made to children eligible for relative 
185.17  custody assistance under section 257.85; 
185.18     (45) vendor payments for goods and services made on behalf 
185.19  of a client unless the client has the option of receiving the 
185.20  payment in cash; and 
185.21     (46) the principal portion of a contract for deed payment. 
185.22     Sec. 9.  Minnesota Statutes 1998, section 256J.32, is 
185.23  amended by adding a subdivision to read: 
185.24     Subd. 7a.  [REQUIREMENT TO REPORT TO IMMIGRATION AND 
185.25  NATURALIZATION SERVICES.] Notwithstanding subdivision 7, 
185.26  effective July 1, 2001, the commissioner shall report to the 
185.27  Immigration and Naturalization Services all undocumented persons 
185.28  who have been identified through application verification 
185.29  procedures or by the self-admission of an applicant for 
185.30  assistance.  Reports made under this subdivision must comply 
185.31  with the requirements of section 411A of the Social Security 
185.32  Act, as amended, and United States Code, title 8, section 1644. 
185.33     Sec. 10.  Minnesota Statutes 1999 Supplement, section 
185.34  256J.33, subdivision 4, is amended to read: 
185.35     Subd. 4.  [MONTHLY INCOME TEST.] A county agency must apply 
185.36  the monthly income test retrospectively for each month of MFIP 
186.1   eligibility.  An assistance unit is not eligible when the 
186.2   countable income equals or exceeds the MFIP standard of need or 
186.3   the family wage level for the assistance unit.  The income 
186.4   applied against the monthly income test must include: 
186.5      (1) gross earned income from employment, prior to mandatory 
186.6   payroll deductions, voluntary payroll deductions, wage 
186.7   authorizations, and after the disregards in section 256J.21, 
186.8   subdivision 4, and the allocations in section 256J.36, unless 
186.9   the employment income is specifically excluded under section 
186.10  256J.21, subdivision 2; 
186.11     (2) gross earned income from self-employment less 
186.12  deductions for self-employment expenses in section 256J.37, 
186.13  subdivision 5, but prior to any reductions for personal or 
186.14  business state and federal income taxes, personal FICA, personal 
186.15  health and life insurance, and after the disregards in section 
186.16  256J.21, subdivision 4, and the allocations in section 256J.36; 
186.17     (3) unearned income after deductions for allowable expenses 
186.18  in section 256J.37, subdivision 9, and allocations in section 
186.19  256J.36, unless the income has been specifically excluded in 
186.20  section 256J.21, subdivision 2; 
186.21     (4) gross earned income from employment as determined under 
186.22  clause (1) which is received by a member of an assistance unit 
186.23  who is a minor child or minor caregiver and less than a 
186.24  half-time student; 
186.25     (5) child support and spousal support received or 
186.26  anticipated to be received by an assistance unit; 
186.27     (6) the income of a parent when that parent is not included 
186.28  in the assistance unit; 
186.29     (7) the income of an eligible relative and spouse who seek 
186.30  to be included in the assistance unit; and 
186.31     (8) the unearned income of a minor child included in the 
186.32  assistance unit. 
186.33     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
186.34     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
186.35  256J.34, subdivision 1, is amended to read: 
186.36     Subdivision 1.  [PROSPECTIVE BUDGETING.] A county agency 
187.1   must use prospective budgeting to calculate the assistance 
187.2   payment amount for the first two months for an applicant who has 
187.3   not received assistance in this state for at least one payment 
187.4   month preceding the first month of payment under a current 
187.5   application.  Notwithstanding subdivision 3, paragraph (a), 
187.6   clause (2), a county agency must use prospective budgeting for 
187.7   the first two months for a person who applies to be added to an 
187.8   assistance unit.  Prospective budgeting is not subject to 
187.9   overpayments or underpayments unless fraud is determined under 
187.10  section 256.98. 
187.11     (a) The county agency must apply the income received or 
187.12  anticipated in the first month of MFIP eligibility against the 
187.13  need of the first month.  The county agency must apply the 
187.14  income received or anticipated in the second month against the 
187.15  need of the second month. 
187.16     (b) When the assistance payment for any part of the first 
187.17  two months is based on anticipated income, the county agency 
187.18  must base the initial assistance payment amount on the 
187.19  information available at the time the initial assistance payment 
187.20  is made. 
187.21     (c) The county agency must determine the assistance payment 
187.22  amount for the first two months of MFIP eligibility by budgeting 
187.23  both recurring and nonrecurring income for those two months. 
187.24     (d) The county agency must budget the child support income 
187.25  received or anticipated to be received by an assistance unit to 
187.26  determine the assistance payment amount from the month of 
187.27  application through the date in which MFIP eligibility is 
187.28  determined and assistance is authorized.  Child support income 
187.29  which has been budgeted to determine the assistance payment in 
187.30  the initial two months is considered nonrecurring income.  An 
187.31  assistance unit must forward any payment of child support to the 
187.32  child support enforcement unit of the county agency following 
187.33  the date in which assistance is authorized. 
187.34     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
187.35     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
187.36  256J.34, subdivision 4, is amended to read: 
188.1      Subd. 4.  [SIGNIFICANT CHANGE IN GROSS INCOME.] The county 
188.2   agency must recalculate the assistance payment when an 
188.3   assistance unit experiences a significant change, as defined in 
188.4   section 256J.08, resulting in a reduction in the gross income 
188.5   received in the payment month from the gross income received in 
188.6   the budget month.  The county agency must issue a supplemental 
188.7   assistance payment based on the county agency's best estimate of 
188.8   the assistance unit's income and circumstances for the payment 
188.9   month.  Supplemental assistance payments that result from 
188.10  significant changes are limited to two in a 12-month period 
188.11  regardless of the reason for the change.  Notwithstanding any 
188.12  other statute or rule of law, supplementary assistance payments 
188.13  shall not be made when the significant change in income is the 
188.14  result of receipt of a lump sum, receipt of an extra paycheck, 
188.15  business fluctuation in self-employment income, or an assistance 
188.16  unit member's participation in a strike or other labor 
188.17  action.  Supplementary assistance payments due to a significant 
188.18  change in the amount of direct support received must not be made 
188.19  after the date the assistance unit is required to forward 
188.20  support to the child support enforcement unit under subdivision 
188.21  1, paragraph (d). 
188.22     <b>EFFECTIVE DATE:</b>  This section is effective January 1, 2001. 
188.23     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
188.24  256J.37, subdivision 9, is amended to read: 
188.25     Subd. 9.  [UNEARNED INCOME.] (a) The county agency must 
188.26  apply unearned income to the MFIP standard of need.  When 
188.27  determining the amount of unearned income, the county agency 
188.28  must deduct the costs necessary to secure payments of unearned 
188.29  income.  These costs include legal fees, medical fees, and 
188.30  mandatory deductions such as federal and state income taxes. 
188.31     (b) Effective January July 1, 2001, the county agency shall 
188.32  count $100 of the value of public and assisted rental subsidies 
188.33  provided through the Department of Housing and Urban Development 
188.34  (HUD) as unearned income.  The full amount of the subsidy must 
188.35  be counted as unearned income when the subsidy is less than $100.
188.36     (c) The provisions of paragraph (b) shall not apply to MFIP 
189.1   participants who are exempt from the employment and training 
189.2   services component because they are: 
189.3      (i) individuals who are age 60 or older; 
189.4      (ii) individuals who are suffering from a professionally 
189.5   certified permanent or temporary illness, injury, or incapacity 
189.6   which is expected to continue for more than 30 days and which 
189.7   prevents the person from obtaining or retaining employment; or 
189.8      (iii) caregivers whose presence in the home is required 
189.9   because of the professionally certified illness or incapacity of 
189.10  another member in the assistance unit, a relative in the 
189.11  household, or a foster child in the household. 
189.12     (d) The provisions of paragraph (b) shall not apply to an 
189.13  MFIP assistance unit where the parental caregiver receives 
189.14  supplemental security income. 
189.15     Sec. 14.  Minnesota Statutes 1998, section 256J.45, 
189.16  subdivision 3, is amended to read: 
189.17     Subd. 3.  [GOOD CAUSE EXEMPTIONS FOR NOT ATTENDING 
189.18  ORIENTATION.] (a) The county agency shall not impose the 
189.19  sanction under section 256J.46 if it determines that the 
189.20  participant has good cause for failing to attend orientation.  
189.21  Good cause exists when: 
189.22     (1) appropriate child care is not available; 
189.23     (2) the participant is ill or injured; 
189.24     (3) a family member is ill and needs care by the 
189.25  participant that prevents the participant from attending 
189.26  orientation.  For a caregiver with a child or adult in the 
189.27  household who meets the disability or medical criteria for home 
189.28  care services under section 256B.0627, subdivision 1, paragraph 
189.29  (c) or a home and community-based waiver services program under 
189.30  chapter 256B, or meets the criteria for severe emotional 
189.31  disturbance under section 245.4871, subdivision 6, or for 
189.32  serious and persistent mental illness under section 245.462, 
189.33  subdivision 20, paragraph (c), good cause also exists when an 
189.34  interruption in the provision of those services occurs which 
189.35  prevents the participant from attending orientation; 
189.36     (4) the caregiver is unable to secure necessary 
190.1   transportation; 
190.2      (5) the caregiver is in an emergency situation that 
190.3   prevents orientation attendance; 
190.4      (6) the orientation conflicts with the caregiver's work, 
190.5   training, or school schedule; or 
190.6      (7) the caregiver documents other verifiable impediments to 
190.7   orientation attendance beyond the caregiver's control.  
190.8      (b) Counties must work with clients to provide child care 
190.9   and transportation necessary to ensure a caregiver has every 
190.10  opportunity to attend orientation. 
190.11     Sec. 15.  Minnesota Statutes 1998, section 256J.47, 
190.12  subdivision 1, is amended to read: 
190.13     Subdivision 1.  [ELIGIBILITY.] A family is eligible to 
190.14  receive diversionary assistance once every 36 12 months if: 
190.15     (1) a family member has resided in this state for at least 
190.16  30 days; 
190.17     (2) the caregiver provides verification that the caregiver 
190.18  has either experienced an unexpected occurrence that makes it 
190.19  impossible to retain or obtain employment or the caregiver has a 
190.20  temporary loss of income, which is not due to refusing to accept 
190.21  or terminating suitable employment as defined in section 
190.22  256J.49, without good cause under section 256J.57, resulting in 
190.23  an emergency; 
190.24     (3) the caregiver is at risk of MFIP-S eligibility if 
190.25  diversionary assistance is not provided and household income is 
190.26  below 140 200 percent of the federal poverty guidelines; and 
190.27     (4) the diversionary assistance will resolve the emergency 
190.28  and divert the family from applying for MFIP-S. 
190.29     For purposes of this section, diversionary assistance means 
190.30  a one-time lump-sum payment to an individual or third-party 
190.31  vendor to prevent long-term receipt of public assistance. 
190.32     Sec. 16.  Minnesota Statutes 1998, section 256J.49, 
190.33  subdivision 13, is amended to read: 
190.34     Subd. 13.  [WORK ACTIVITY.] "Work activity" means any 
190.35  activity in a participant's approved employment plan that is 
190.36  tied to the participant's employment goal.  For purposes of the 
191.1   MFIP-S MFIP program, any activity that is included in a 
191.2   participant's approved employment plan meets the definition of 
191.3   work activity as counted under the federal participation 
191.4   standards.  Work activity includes, but is not limited to: 
191.5      (1) unsubsidized employment; 
191.6      (2) subsidized private sector or public sector employment, 
191.7   including grant diversion as specified in section 256J.69; 
191.8      (3) work experience, including CWEP as specified in section 
191.9   256J.67, and including work associated with the refurbishing of 
191.10  publicly assisted housing if sufficient private sector 
191.11  employment is not available; 
191.12     (4) on-the-job training as specified in section 256J.66; 
191.13     (5) job search, either supervised or unsupervised; 
191.14     (6) job readiness assistance; 
191.15     (7) job clubs, including job search workshops; 
191.16     (8) job placement; 
191.17     (9) job development; 
191.18     (10) job-related counseling; 
191.19     (11) job coaching; 
191.20     (12) job retention services; 
191.21     (13) job-specific training or education; 
191.22     (14) job skills training directly related to employment; 
191.23     (15) the self-employment investment demonstration (SEID), 
191.24  as specified in section 256J.65; 
191.25     (16) preemployment activities, based on availability and 
191.26  resources, such as volunteer work, literacy programs and related 
191.27  activities, citizenship and classes, English as a second 
191.28  language (ESL) classes as limited by the provisions of section 
191.29  256J.52, subdivisions 3, paragraph (d), and 5, paragraph (c), or 
191.30  participation in dislocated worker services, chemical dependency 
191.31  treatment, mental health services, peer group networks, 
191.32  displaced homemaker programs, strength-based resiliency 
191.33  training, parenting education, or other programs designed to 
191.34  help families reach their employment goals and enhance their 
191.35  ability to care for their children; 
191.36     (17) community service programs; 
192.1      (18) vocational educational training or educational 
192.2   programs that can reasonably be expected to lead to employment, 
192.3   as limited by the provisions of section 256J.53; 
192.4      (19) apprenticeships; 
192.5      (20) satisfactory attendance in general educational 
192.6   development diploma classes or an adult diploma program; 
192.7      (21) satisfactory attendance at secondary school, if the 
192.8   participant has not received a high school diploma; 
192.9      (22) adult basic education classes; 
192.10     (23) internships; 
192.11     (24) bilingual employment and training services; 
192.12     (25) providing child care services to a participant who is 
192.13  working in a community service program; and 
192.14     (26) activities included in a safety plan that is developed 
192.15  under section 256J.52, subdivision 6. 
192.16     Sec. 17.  Minnesota Statutes 1998, section 256J.50, 
192.17  subdivision 5, is amended to read: 
192.18     Subd. 5.  [PARTICIPATION REQUIREMENTS FOR SINGLE-PARENT AND 
192.19  TWO-PARENT ALL CASES.] (a) A county must establish a uniform 
192.20  schedule for requiring participation by single parents.  
192.21  Mandatory participation must be required within six months of 
192.22  eligibility for cash assistance.  For two-parent cases, 
192.23  participation is required concurrent with the receipt of MFIP-S 
192.24  MFIP cash assistance.  
192.25     For single-parent cases, participation is required 
192.26  concurrent with the receipt of MFIP cash assistance for all 
192.27  counties except Blue Earth and Nicollet, effective July 1, 2000, 
192.28  and is required for Blue Earth and Nicollet counties effective 
192.29  January 1, 2001.  For Blue Earth and Nicollet counties only, 
192.30  from July 1, 2000 to December 31, 2000, mandatory participation 
192.31  for single-parent cases must be required within six months of 
192.32  eligibility for cash assistance. 
192.33     (b) Beginning January 1, 1998, with the exception of 
192.34  caregivers required to attend high school under the provisions 
192.35  of section 256J.54, subdivision 5, MFIP caregivers, upon 
192.36  completion of the secondary assessment, must develop an 
193.1   employment plan and participate in work activities. 
193.2      (c) Upon completion of the secondary assessment: 
193.3      (1) In single-parent families with no children under six 
193.4   years of age, the job counselor and the caregiver must develop 
193.5   an employment plan that includes 20 to 35 hours per week of work 
193.6   activities for the period January 1, 1998, to September 30, 
193.7   1998; 25 to 35 hours of work activities per week in federal 
193.8   fiscal year 1999; and 30 to 35 hours per week of work activities 
193.9   in federal fiscal year 2000 and thereafter. 
193.10     (2) In single-parent families with a child under six years 
193.11  of age, the job counselor and the caregiver must develop an 
193.12  employment plan that includes 20 to 35 hours per week of work 
193.13  activities. 
193.14     (3) In two-parent families, the job counselor and the 
193.15  caregivers must develop employment plans which result in a 
193.16  combined total of at least 55 hours per week of work activities. 
193.17     Sec. 18.  Minnesota Statutes 1998, section 256J.50, 
193.18  subdivision 7, is amended to read: 
193.19     Subd. 7.  [LOCAL SERVICE UNIT PLAN.] (a) Each local or 
193.20  county service unit shall prepare and submit a plan as specified 
193.21  in section 268.88. 
193.22     (b) The plan must include a description of how projects 
193.23  funded under the local intervention grants for self-sufficiency 
193.24  in section 256J.625, subdivisions 2 and 3, operate in the local 
193.25  service unit, including: 
193.26     (1) the target populations of hard-to-employ participants 
193.27  and working participants in need of job retention and wage 
193.28  advancement services, with a description of how individual 
193.29  participant needs will be met; 
193.30     (2) services that will be provided which may include paid 
193.31  work experience, enhanced mental health services, outreach to 
193.32  sanctioned families, child care for social services, child care 
193.33  transition year set-aside, homeless and housing advocacy, and 
193.34  transportation; 
193.35     (3) projected expenditures by activity; 
193.36     (4) anticipated program outcomes including the anticipated 
194.1   impact the intervention efforts will have on performance 
194.2   measures under section 256J.751 and on reducing the number of 
194.3   MFIP participants expected to reach their 60-month time limit; 
194.4   and 
194.5      (5) a description of services that are provided or will be 
194.6   provided to MFIP participants affected by chemical dependency, 
194.7   mental health issues, learning disabilities, or family violence. 
194.8      Each plan must demonstrate how the county or tribe is 
194.9   working within its organization and with other organizations in 
194.10  the community to serve hard-to-employ populations, including how 
194.11  organizations in the community were engaged in planning for use 
194.12  of these funds, services other entities will provide under the 
194.13  plan, and whether multicounty or regional strategies are being 
194.14  implemented as part of this plan. 
194.15     (c) Activities and expenditures in the plan must enhance or 
194.16  supplement MFIP activities without supplanting existing 
194.17  activities and expenditures.  However, this paragraph does not 
194.18  require a county to maintain either:  
194.19     (1) its current provision of child care assistance to MFIP 
194.20  families through the expenditure of county resources under 
194.21  chapter 256E for social services child care assistance if funds 
194.22  are appropriated by another law for an MFIP social services 
194.23  child care pool; 
194.24     (2) its current provision of transition-year child care 
194.25  assistance through the expenditure of county resources if funds 
194.26  are appropriated by another law for this purpose; or 
194.27     (3) its current provision of intensive ESL programs through 
194.28  the expenditure of county resources if funds are appropriated by 
194.29  another law for intensive ESL grants. 
194.30     (d) The plan required under this subdivision must be 
194.31  approved before the local or county service unit is eligible to 
194.32  receive funds under section 256J.625, subdivisions 2 and 3. 
194.33     Sec. 19.  Minnesota Statutes 1999 Supplement, section 
194.34  256J.52, subdivision 3, is amended to read: 
194.35     Subd. 3.  [JOB SEARCH; JOB SEARCH SUPPORT PLAN.] (a) If, 
194.36  after the initial assessment, the job counselor determines that 
195.1   the participant possesses sufficient skills that the participant 
195.2   is likely to succeed in obtaining suitable employment, the 
195.3   participant must conduct job search for a period of up to eight 
195.4   weeks, for at least 30 hours per week.  The participant must 
195.5   accept any offer of suitable employment.  Upon agreement by the 
195.6   job counselor and the participant, a job search support plan may 
195.7   limit a job search to jobs that are consistent with the 
195.8   participant's employment goal.  The job counselor and 
195.9   participant must develop a job search support plan which 
195.10  specifies, at a minimum:  whether the job search is to be 
195.11  supervised or unsupervised; support services that will be 
195.12  provided while the participant conducts job search activities; 
195.13  the courses necessary to obtain certification or licensure, if 
195.14  applicable, and after obtaining the license or certificate, the 
195.15  client must comply with subdivision 5; and how frequently the 
195.16  participant must report to the job counselor on the status of 
195.17  the participant's job search activities.  The job search support 
195.18  plan may must also specify that the participant fulfill a 
195.19  specified portion no more than half of the required hours of job 
195.20  search through attending adult basic education or English as a 
195.21  second language classes, if one or both of those activities are 
195.22  approved by the job counselor. 
195.23     (b) During the eight-week job search period, either the job 
195.24  counselor or the participant may request a review of the 
195.25  participant's job search plan and progress towards obtaining 
195.26  suitable employment.  If a review is requested by the 
195.27  participant, the job counselor must concur that the review is 
195.28  appropriate for the participant at that time.  If a review is 
195.29  conducted, the job counselor may make a determination to conduct 
195.30  a secondary assessment prior to the conclusion of the job search.
195.31     (c) Failure to conduct the required job search, to accept 
195.32  any offer of suitable employment, to develop or comply with a 
195.33  job search support plan, or voluntarily quitting suitable 
195.34  employment without good cause results in the imposition of a 
195.35  sanction under section 256J.46.  If at the end of eight weeks 
195.36  the participant has not obtained suitable employment, the job 
196.1   counselor must conduct a secondary assessment of the participant 
196.2   under subdivision 3. 
196.3      (d) In order for an English as a second language (ESL) 
196.4   class to be an approved work activity, a participant must be at 
196.5   or below a spoken language proficiency level of SPL5 or its 
196.6   equivalent, as measured by a nationally recognized test.  A 
196.7   participant may not be approved for more than a total of 24 
196.8   months of ESL activities while participating in the employment 
196.9   and training services component of MFIP.  In approving ESL as a 
196.10  work activity, the job counselor must give preference to 
196.11  enrollment in an intensive ESL program, if one is available, 
196.12  over a regular ESL program.  If an intensive ESL program is 
196.13  approved, the restriction in paragraph (a) that no more than 
196.14  half of the required hours of job search is fulfilled through 
196.15  attending ESL classes does not apply. 
196.16     Sec. 20.  Minnesota Statutes 1999 Supplement, section 
196.17  256J.52, subdivision 5, is amended to read: 
196.18     Subd. 5.  [EMPLOYMENT PLAN; CONTENTS.] (a) Based on the 
196.19  secondary assessment under subdivision 4, the job counselor and 
196.20  the participant must develop an employment plan for the 
196.21  participant that includes specific activities that are tied to 
196.22  an employment goal and a plan for long-term self-sufficiency, 
196.23  and that is designed to move the participant along the most 
196.24  direct path to unsubsidized employment.  The employment plan 
196.25  must list the specific steps that will be taken to obtain 
196.26  employment and a timetable for completion of each of the steps. 
196.27  Upon agreement by the job counselor and the participant, the 
196.28  employment plan may limit a job search to jobs that are 
196.29  consistent with the participant's employment goal. 
196.30     (b) As part of the development of the participant's 
196.31  employment plan, the participant shall have the option of 
196.32  selecting from among the vendors or resources that the job 
196.33  counselor determines will be effective in supplying one or more 
196.34  of the services necessary to meet the employment goals specified 
196.35  in the participant's plan.  In compiling the list of vendors and 
196.36  resources that the job counselor determines would be effective 
197.1   in meeting the participant's employment goals, the job counselor 
197.2   must determine that adequate financial resources are available 
197.3   for the vendors or resources ultimately selected by the 
197.4   participant. 
197.5      (c) In order for an English as a second language (ESL) 
197.6   class to be an approved work activity, a participant must be at 
197.7   or below a spoken language proficiency level of SPL5 or its 
197.8   equivalent, as measured by a nationally recognized test.  A 
197.9   participant may not be approved for more than a total of 24 
197.10  months of ESL activities while participating in the employment 
197.11  and training services component of MFIP.  In approving ESL as a 
197.12  work activity, the job counselor must give preference to 
197.13  enrollment in an intensive ESL program, if one is available, 
197.14  over a regular ESL program. 
197.15     (d) The job counselor and the participant must sign the 
197.16  developed plan to indicate agreement between the job counselor 
197.17  and the participant on the contents of the plan. 
197.18     Sec. 21.  Minnesota Statutes 1999 Supplement, section 
197.19  256J.56, is amended to read: 
197.20     256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 
197.21  EXEMPTIONS.] 
197.22     (a) An MFIP caregiver is exempt from the requirements of 
197.23  sections 256J.52 to 256J.55 if the caregiver belongs to any of 
197.24  the following groups: 
197.25     (1) individuals who are age 60 or older; 
197.26     (2) individuals who are suffering from a professionally 
197.27  certified permanent or temporary illness, injury, or incapacity 
197.28  which is expected to continue for more than 30 days and which 
197.29  prevents the person from obtaining or retaining employment.  
197.30  Persons in this category with a temporary illness, injury, or 
197.31  incapacity must be reevaluated at least quarterly; 
197.32     (3) caregivers whose presence in the home is required 
197.33  because of the professionally certified illness or incapacity of 
197.34  another member in the assistance unit, a relative in the 
197.35  household, or a foster child in the household; 
197.36     (4) women who are pregnant, if the pregnancy has resulted 
198.1   in a professionally certified incapacity that prevents the woman 
198.2   from obtaining or retaining employment; 
198.3      (5) caregivers of a child under the age of one year who 
198.4   personally provide full-time care for the child.  This exemption 
198.5   may be used for only 12 months in a lifetime.  In two-parent 
198.6   households, only one parent or other relative may qualify for 
198.7   this exemption; 
198.8      (6) individuals who are single parents, or one parent in a 
198.9   two-parent family, employed at least 35 hours per week; 
198.10     (7) individuals experiencing a personal or family crisis 
198.11  that makes them incapable of participating in the program, as 
198.12  determined by the county agency.  If the participant does not 
198.13  agree with the county agency's determination, the participant 
198.14  may seek professional certification, as defined in section 
198.15  256J.08, that the participant is incapable of participating in 
198.16  the program. 
198.17     Persons in this exemption category must be reevaluated 
198.18  every 60 days; or 
198.19     (8) second parents in two-parent families employed for 20 
198.20  or more hours per week, provided the first parent is employed at 
198.21  least 35 hours per week; or 
198.22     (9) caregivers with a child or an adult in the household 
198.23  who meets the disability or medical criteria for home care 
198.24  services under section 256B.0627, subdivision 1, paragraph (c), 
198.25  or a home and community-based waiver services program under 
198.26  chapter 256B, or meets the criteria for severe emotional 
198.27  disturbance under section 245.4871, subdivision 6, or for 
198.28  serious and persistent mental illness under section 245.462, 
198.29  subdivision 20, paragraph (c).  Caregivers in this exemption 
198.30  category are presumed to be prevented from obtaining or 
198.31  retaining employment. 
198.32     A caregiver who is exempt under clause (5) must enroll in 
198.33  and attend an early childhood and family education class, a 
198.34  parenting class, or some similar activity, if available, during 
198.35  the period of time the caregiver is exempt under this section.  
198.36  Notwithstanding section 256J.46, failure to attend the required 
199.1   activity shall not result in the imposition of a sanction. 
199.2      (b) The county agency must provide employment and training 
199.3   services to MFIP caregivers who are exempt under this section, 
199.4   but who volunteer to participate.  Exempt volunteers may request 
199.5   approval for any work activity under section 256J.49, 
199.6   subdivision 13.  The hourly participation requirements for 
199.7   nonexempt caregivers under section 256J.50, subdivision 5, do 
199.8   not apply to exempt caregivers who volunteer to participate. 
199.9      Sec. 22.  [256J.625] [LOCAL INTERVENTION GRANTS FOR 
199.10  SELF-SUFFICIENCY.] 
199.11     Subdivision 1.  [ESTABLISHMENT; GUARANTEED MINIMUM 
199.12  ALLOCATION.] (a) The commissioner shall make grants under this 
199.13  subdivision to assist county and tribal TANF programs to more 
199.14  effectively serve hard-to-employ MFIP participants.  Funds 
199.15  appropriated for local intervention grants for self-sufficiency 
199.16  must be allocated first in amounts equal to the guaranteed 
199.17  minimum in paragraph (b), and second according to the provisions 
199.18  of subdivision 2.  Any remaining funds must be allocated 
199.19  according to the formula in subdivision 3.  Counties or tribes 
199.20  must have an approved local service unit plan under section 
199.21  256J.50, subdivision 7, paragraph (b), in order to receive and 
199.22  expend funds under subdivisions 2 and 3.  
199.23     (b) Each county or tribal program shall receive a 
199.24  guaranteed minimum annual allocation of $25,000. 
199.25     Subd. 2.  [SET-ASIDE FUNDS.] (a) Of the funds appropriated 
199.26  for grants under this section, after the allocation in 
199.27  subdivision 1, paragraph (b), is made, 20 percent of the 
199.28  remaining funds each year shall be retained by the commissioner 
199.29  and awarded to counties or tribes whose approved plans 
199.30  demonstrate additional need based on their identification of 
199.31  hard-to-employ families and working participants in need of job 
199.32  retention and wage advancement services, strong anticipated 
199.33  outcomes for families and an effective plan for monitoring 
199.34  performance, or, use of a multicounty, multi-entity or regional 
199.35  approach to serve hard-to-employ families and working 
199.36  participants in need of job retention and wage advancement 
200.1   services who are identified as a target population to be served 
200.2   in the plan submitted under section 256J.50, subdivision 7, 
200.3   paragraph (b).  In distributing funds under this paragraph, the 
200.4   commissioner must achieve a geographic balance.  The 
200.5   commissioner may award funds under this paragraph to other 
200.6   public, private, or nonprofit entities to deliver services in a 
200.7   county or region where the entity or entities submit a plan that 
200.8   demonstrates a strong capability to fulfill the terms of the 
200.9   plan and where the plan shows an innovative or multi-entity 
200.10  approach. 
200.11     (b) For fiscal year 2001 only, of the funds available under 
200.12  this subdivision the commissioner must allocate funding in the 
200.13  amounts specified in article 1, section 2, subdivision 7, for an 
200.14  intensive intervention transitional employment training project 
200.15  and for nontraditional career assistance and training programs.  
200.16  These allocations must occur before any set-aside funds are 
200.17  allocated under paragraph (a). 
200.18     Subd. 2a.  [ALTERNATIVE DISTRIBUTION FORMULA.] (a) By 
200.19  January 31, 2001, the commissioner of human services must 
200.20  develop and present to the appropriate legislative committees a 
200.21  distribution formula that is an alternative to the formula 
200.22  allocation specified in subdivision 3.  The proposed 
200.23  distribution formula must target hard-to-employ MFIP 
200.24  participants, and it must include an incentive-based component 
200.25  that is designed to encourage county and tribal programs to 
200.26  effectively serve hard-to-employ participants.  The 
200.27  commissioner's proposal must also be designed to be implemented 
200.28  for fiscal years 2002 and 2003 in place of the formula 
200.29  allocation specified in subdivision 3. 
200.30     (b) Notwithstanding the provisions of subdivision 2, 
200.31  paragraph (a), if the commissioner does not develop a proposed 
200.32  formula as required in paragraph (a), the set-aside funds for 
200.33  fiscal years 2002 and 2003 that the commissioner would otherwise 
200.34  distribute under subdivision 2, paragraph (a), must not be 
200.35  distributed under that provision.  Funds available under 
200.36  subdivision 2, paragraph (a), must instead be allocated in equal 
201.1   amounts to each county and tribal program in fiscal years 2002 
201.2   and 2003. 
201.3      Subd. 3.  [FORMULA ALLOCATION.] Funds remaining after the 
201.4   allocations in subdivisions 1 and 2 must be allocated as follows:
201.5      (1) 85 percent shall be allocated in proportion to each 
201.6   county's and tribal TANF program's one-parent MFIP cases that 
201.7   have received MFIP assistance for at least 25 months, as sampled 
201.8   on December 31 of the previous calendar year, excluding cases 
201.9   where all caregivers are age 60 or over. 
201.10     (2) 15 percent shall be allocated to each county's and 
201.11  tribal TANF program's two-parent MFIP cases that have received 
201.12  MFIP assistance for at least 25 months, as sampled on December 
201.13  31 of the previous calendar year, excluding cases where all 
201.14  caregivers are age 60 or over. 
201.15     Subd. 4.  [USE OF FUNDS.] (a) A county or tribal program 
201.16  may use funds allocated under this subdivision to provide 
201.17  services to MFIP participants who are hard-to-employ and their 
201.18  families.  Services provided must be intended to reduce the 
201.19  number of MFIP participants who are expected to reach the 
201.20  60-month time limit under section 256J.42.  Counties, tribes, 
201.21  and other entities receiving funds under subdivisions 2 or 3 
201.22  must submit semiannual progress reports to the commissioner 
201.23  which detail program outcomes. 
201.24     (b) Funds allocated under this section may not be used to 
201.25  provide benefits that are defined as "assistance" in Code of 
201.26  Federal Regulations, title 45, section 260.31, to an assistance 
201.27  unit that is only receiving the food portion of MFIP benefits. 
201.28     (c) A county may use funds allocated under this section for 
201.29  that part of the match for federal access to jobs transportation 
201.30  funds that is TANF-eligible.  A county may also use funds 
201.31  allocated under this section to enhance transportation choices 
201.32  for eligible recipients up to 150 percent of the federal poverty 
201.33  guidelines. 
201.34     Subd. 5.  [SUNSET.] The grant program under this section 
201.35  sunsets on June 30, 2003. 
201.36     Sec. 23.  [256J.655] [NONTRADITIONAL CAREER ASSISTANCE AND 
202.1   TRAINING.] 
202.2      With the approval of the job counselor, a participant may 
202.3   enroll and participate in a nontraditional career assistance and 
202.4   training (NCAT) program under section 256K.30.  An MFIP 
202.5   recipient participating in an NCAT program with the approval of 
202.6   the job counselor is also eligible for employment and training 
202.7   services, including child care and transportation. 
202.8      Sec. 24.  [256J.88] [CHILD ONLY TANF PROGRAM.] 
202.9      Children who receive assistance under this chapter, in 
202.10  which the assistance unit does not include a caregiver, but only 
202.11  includes a minor child, shall become part of the program 
202.12  established under this section. 
202.13     Sec. 25.  [256K.25] [SUPPORTIVE HOUSING AND MANAGED CARE 
202.14  PILOT PROJECT.] 
202.15     Subdivision 1.  [ESTABLISHMENT AND PURPOSE.] (a) The 
202.16  commissioner shall establish a supportive housing and managed 
202.17  care pilot project in two counties, one within the seven-county 
202.18  metropolitan area and one outside of that area, to determine 
202.19  whether the integrated delivery of employment services, 
202.20  supportive services, housing, and health care into a single, 
202.21  flexible program will: 
202.22     (1) reduce public expenditures on homeless families with 
202.23  minor children, homeless noncustodial parents, and other 
202.24  homeless individuals; 
202.25     (2) increase the employment rates of these persons; and 
202.26     (3) provide a new alternative to providing services to this 
202.27  hard-to-serve population. 
202.28     (b) The commissioner shall create a program for counties 
202.29  for the purpose of providing integrated intensive and 
202.30  individualized case management services, employment services, 
202.31  health care services, rent subsidies or other short- or 
202.32  medium-term housing assistance, and other supportive services to 
202.33  eligible families and individuals.  Minimum project and 
202.34  application requirements shall be developed by the commissioner 
202.35  in cooperation with counties and their nonprofit partners with 
202.36  the goal to provide the maximum flexibility in program design. 
203.1      (c) Services available under this project must be 
203.2   coordinated with available health care services for an eligible 
203.3   project participant. 
203.4      Subd. 2.  [DEFINITION.] For purposes of this section, 
203.5   "homeless" means having no appropriate housing available and 
203.6   lacking the resources necessary to access permanent housing, as 
203.7   determined by the county requesting funding under subdivision 3, 
203.8   and: 
203.9      (1) living, or being at imminent risk of living, on the 
203.10  street or in a shelter; or 
203.11     (2) having been evicted from a dwelling or discharged from 
203.12  a regional treatment center, state-operated community-based 
203.13  program, community hospital, or residential treatment program.  
203.14     Subd. 3.  [COUNTY ELIGIBILITY.] A county may request 
203.15  funding under this pilot project if the county: 
203.16     (1) agrees to develop, in cooperation with nonprofit 
203.17  partners, a supportive housing and managed care pilot project 
203.18  that integrates the delivery of employment services, supportive 
203.19  services, housing and health care for eligible families and 
203.20  individuals, or agrees to contract with an existing integrated 
203.21  program; 
203.22     (2) for eligible participants who are also MFIP recipients, 
203.23  agrees to develop, in cooperation with nonprofit partners, 
203.24  procedures to ensure that the services provided under the pilot 
203.25  project are closely coordinated with the services provided under 
203.26  MFIP; and 
203.27     (3) develops a method for evaluating the quality of the 
203.28  integrated services provided and the amount of any resulting 
203.29  cost savings to the county and state. 
203.30     Subd. 4.  [PARTICIPANT ELIGIBILITY.] (a) In order to be 
203.31  eligible for the pilot project, the county must determine that a 
203.32  participant is homeless or is at risk of homelessness; has a 
203.33  mental illness, a history of substance abuse, or HIV; and is a 
203.34  family that meets the criteria in paragraph (b) or is an 
203.35  individual who meets the criteria in paragraph (c). 
203.36     (b) An eligible family must include a minor child or a 
204.1   pregnant woman, and: 
204.2      (1) be receiving or be eligible for MFIP assistance under 
204.3   chapter 256J; or 
204.4      (2) include an adult caregiver who is employed or is 
204.5   receiving employment and training services, and have household 
204.6   income below the MFIP exit level in section 256J.24, subdivision 
204.7   10.  
204.8      (c) An eligible individual must: 
204.9      (1) meet the eligibility requirements of the group 
204.10  residential housing program under section 256I.04, subdivision 
204.11  1; or 
204.12     (2) be a noncustodial parent who is employed or is 
204.13  receiving employment and training services, and have household 
204.14  income below the MFIP exit level in section 256J.24, subdivision 
204.15  10.  
204.16     Subd. 5.  [FUNDING.] A county may request funding from the 
204.17  commissioner for a specified number of TANF-eligible project 
204.18  participants.  The commissioner shall review the request for 
204.19  compliance with subdivisions 1 to 4 and may approve or 
204.20  disapprove the request.  If other funds are available, the 
204.21  commissioner may allocate funding for project participants who 
204.22  meet the eligibility requirements of subdivision 4, paragraph 
204.23  (c).  
204.24     Subd. 6.  [REPORT.] Participating counties and the 
204.25  commissioner shall collaborate to prepare and issue an annual 
204.26  report, beginning December 1, 2001, to the chairs of the 
204.27  appropriate legislative committees on the pilot project's use of 
204.28  public resources, including other funds leveraged for this 
204.29  initiative, the employment and housing status of the families 
204.30  and individuals served in the project, and the 
204.31  cost-effectiveness of the project.  The annual report must also 
204.32  evaluate the pilot project with respect to the following project 
204.33  goals:  that participants will lead more productive, healthier, 
204.34  more stable and better quality lives; that the teams created 
204.35  under the project to deliver services for each project 
204.36  participant will be accountable for ensuring that services are 
205.1   more appropriate, cost-effective and well-coordinated; and that 
205.2   the system-wide costs of serving this population, and the 
205.3   inappropriate use of emergency, crisis-oriented or institutional 
205.4   services, will be materially reduced.  The commissioner shall 
205.5   provide data that may be needed to evaluate the project to 
205.6   participating counties that request the data. 
205.7      Subd. 7.  [SUNSET.] The pilot project under this section 
205.8   sunsets on June 30, 2006. 
205.9      Sec. 26.  [256K.30] [GRANTS FOR NONTRADITIONAL CAREER 
205.10  ASSISTANCE AND TRAINING PROGRAMS.] 
205.11     Subdivision 1.  [ESTABLISHMENT AND PURPOSE.] The 
205.12  commissioner shall establish a program of reimbursement-based 
205.13  grants to nonprofit organizations to provide nontraditional 
205.14  career assistance and training (NCAT) programs that encourage 
205.15  and assist low-income women with minor children to enter 
205.16  nontraditional careers in the trades and in manual and technical 
205.17  operations. 
205.18     Subd. 2.  [REQUIREMENTS FOR GRANTEES.] To be eligible for a 
205.19  grant under this section, an NCAT program must include the 
205.20  career assistance component specified in subdivision 4. 
205.21     Subd. 3.  [OUTREACH COMPONENT.] An NCAT program may include 
205.22  an outreach component that provides outreach to girls and women 
205.23  through public and private elementary and secondary schools, 
205.24  appropriate community organizations, or existing state and 
205.25  county employment and training programs.  The outreach must 
205.26  consist of:  general information concerning opportunities for 
205.27  women in the trades, manual, and technical occupations, 
205.28  including specific fields where worker shortages exist; and 
205.29  specific information about training programs offered.  The 
205.30  outreach may include printed or recorded information, hands-on 
205.31  experiences for women and girls, presentations to women and 
205.32  girls, or ongoing contact with appropriate staff. 
205.33     Federal TANF funds may not be used for the outreach 
205.34  component of an NCAT program. 
205.35     Subd. 4.  [CAREER ASSISTANCE COMPONENT.] An NCAT program 
205.36  may include a career assistance component that provides the 
206.1   following assistance for low-income women to enter careers in 
206.2   the trades and technical occupations: 
206.3      (1) training designed to prepare women to succeed in 
206.4   nontraditional occupations, conducted by an NCAT grantee or in 
206.5   collaboration with another institution.  The training must cover 
206.6   the knowledge and skills required for the trade, information 
206.7   about on-the-job realities for women in the particular trade, 
206.8   physical strength and stamina training as needed, opportunities 
206.9   for developing workplace problem-solving skills, and information 
206.10  about the current and projected future job market and likely 
206.11  career path for the trade; 
206.12     (2) assistance with child care and transportation during 
206.13  training, during job search, and for at least the first two 
206.14  months of posttraining employment; 
206.15     (3) job placement assistance during training, during job 
206.16  search, and for at least two years after completion of the 
206.17  training program; and 
206.18     (4) job retention support may be in the form of mentorship 
206.19  programs, support groups, or ongoing staff contact for at least 
206.20  the first year of posttraining employment, including access to 
206.21  job-related information, assistance with workplace issue 
206.22  resolution, and access to advocacy services. 
206.23     Subd. 5.  [NCAT; ELIGIBLE PARTICIPANTS.] To be eligible to 
206.24  enroll in an NCAT program under this section, a participant must 
206.25  be a female caregiver receiving assistance under chapter 256J or 
206.26  this chapter.  
206.27     Subd. 6.  [ACCESSIBILITY REQUIRED.] Approved NCAT programs 
206.28  must be accessible to women who are MFIP participants.  Factors 
206.29  that contribute to a program's accessibility include: 
206.30     (1) affordability of tuition and supplies; 
206.31     (2) geographic proximity to low-income neighborhoods, child 
206.32  care, and public transportation routes; and 
206.33     (3) flexibility of the hours per week required by the 
206.34  program and the duration of the program, in order to be 
206.35  compatible with the program participants' family needs and the 
206.36  need for participants to be employed during training. 
207.1      Sec. 27.  [256K.35] [AT-RISK YOUTH OUT-OF-WEDLOCK PREGNANCY 
207.2   PREVENTION PROGRAM.] 
207.3      Subdivision 1.  [ESTABLISHMENT AND PURPOSE.] The 
207.4   commissioner shall establish a statewide grant program to 
207.5   prevent or reduce the incidence of out-of-wedlock pregnancies 
207.6   among homeless, runaway, or thrown-away youth who are at risk of 
207.7   being prostituted or currently being used in prostitution.  The 
207.8   goal of the out-of-wedlock pregnancy prevention program is to 
207.9   significantly increase the number of existing short-term shelter 
207.10  beds for these youth in the state.  By providing street outreach 
207.11  and supportive services for emergency shelter, transitional 
207.12  housing, and services to reconnect the youth with their families 
207.13  where appropriate, the number of youth at risk of being sexually 
207.14  exploited or actually being sexually exploited, and thus at risk 
207.15  of experiencing an out-of-wedlock pregnancy, will be reduced. 
207.16     Subd. 2.  [FUNDS AVAILABLE.] The commissioner shall make 
207.17  funds for street outreach and supportive services for emergency 
207.18  shelter and transitional housing for out-of-wedlock pregnancy 
207.19  prevention available to eligible nonprofit corporations or 
207.20  government agencies to provide supportive services for emergency 
207.21  and transitional housing for at-risk youth.  The commissioner 
207.22  shall consider the need for emergency and transitional housing 
207.23  supportive services throughout the state, and must give priority 
207.24  to applicants who offer 24-hour emergency facilities. 
207.25     Subd. 3.  [APPLICATION; ELIGIBILITY.] (a) A nonprofit 
207.26  corporation or government agency must submit an application to 
207.27  the commissioner in the form and manner the commissioner 
207.28  establishes.  The application must describe how the applicant 
207.29  meets the eligibility criteria under paragraph (b).  The 
207.30  commissioner may also require an applicant to provide additional 
207.31  information. 
207.32     (b) To be eligible for funding under this section, an 
207.33  applicant must meet the following criteria: 
207.34     (1) the applicant must have a commitment to helping the 
207.35  community, children, and preventing juvenile prostitution.  If 
207.36  the applicant does not have any past experience with youth 
208.1   involved in or at risk of being used in prostitution, the 
208.2   applicant must demonstrate knowledge of best practices in this 
208.3   area and develop a plan to follow those practices; 
208.4      (2) the applicant must present a plan to communicate with 
208.5   local law enforcement officials, social services, and the 
208.6   commissioner consistent with state and federal law; and 
208.7      (3) the applicant must present a plan to encourage 
208.8   homeless, runaway, or thrown-away youth to either reconnect with 
208.9   family or to transition into long-term housing. 
208.10     Subd. 4.  [USES OF FUNDS.] (a) Funds available under this 
208.11  section must be used to create and maintain supportive services 
208.12  for emergency shelter and transitional housing for homeless, 
208.13  runaway, and thrown-away youth.  Federal TANF funds must be used 
208.14  to serve youth and their families with household income below 
208.15  200 percent of the federal poverty guidelines.  If other funds 
208.16  are available, services may be provided to youth outside of 
208.17  TANF-eligible families. 
208.18     (b) Funds available under this section shall not be used to 
208.19  conduct general education or awareness programs unrelated to the 
208.20  operation of an emergency shelter or transitional housing. 
208.21     Sec. 28.  Laws 1997, chapter 203, article 9, section 21, as 
208.22  amended by Laws 1998, chapter 407, article 6, section 111, is 
208.23  amended to read: 
208.24     Sec. 21.  [INELIGIBILITY FOR STATE FUNDED PROGRAMS.] 
208.25     (a) Beginning July 1, 2000 Effective on the date specified, 
208.26  the following persons will be ineligible for general assistance 
208.27  and general assistance medical care under Minnesota Statutes, 
208.28  chapter 256D, group residential housing under Minnesota 
208.29  Statutes, chapter 256I, and MFIP-S MFIP assistance under 
208.30  Minnesota Statutes, chapter 256J, funded with state money: 
208.31     (1) Beginning July 1, 2002, persons who are terminated from 
208.32  or denied Supplemental Security Income due to the 1996 changes 
208.33  in the federal law making persons whose alcohol or drug 
208.34  addiction is a material factor contributing to the person's 
208.35  disability ineligible for Supplemental Security Income, and are 
208.36  eligible for general assistance under Minnesota Statutes, 
209.1   section 256D.05, subdivision 1, paragraph (a), clause (17) 15, 
209.2   general assistance medical care under Minnesota Statutes, 
209.3   chapter 256D, or group residential housing under Minnesota 
209.4   Statutes, chapter 256I; 
209.5      (2) Beginning July 1, 2002, legal noncitizens who are 
209.6   ineligible for Supplemental Security Income due to the 1996 
209.7   changes in federal law making certain noncitizens ineligible for 
209.8   these programs due to their noncitizen status; and 
209.9      (3) Beginning July 1, 2001, legal noncitizens who are 
209.10  eligible for MFIP-S MFIP assistance, either the cash assistance 
209.11  portion or the food assistance portion, funded entirely with 
209.12  state money. 
209.13     (b) State money that remains unspent due to changes in 
209.14  federal law enacted after May 12, 1997, that reduce state 
209.15  spending for legal noncitizens or for persons whose alcohol or 
209.16  drug addiction is a material factor contributing to the person's 
209.17  disability, or enacted after February 1, 1998, that reduce state 
209.18  spending for food benefits for legal noncitizens shall not 
209.19  cancel and shall be deposited in the TANF reserve account.  
209.20     Sec. 29.  [PILOT PROJECTS FOR MFIP ELIGIBLE FAMILIES.] 
209.21     The commissioner of human services shall authorize Dakota 
209.22  county and four other counties to test alternative approaches to 
209.23  improve compliance with MFIP work requirements or to encourage 
209.24  rapid entrance into the workforce.  The projects are intended to 
209.25  improve employability and self-sufficiency outcomes for MFIP 
209.26  eligible families.  These county pilots may test different 
209.27  approaches which include, but are not limited to, diversion of 
209.28  MFIP eligible applicants and case suspension or closure for 
209.29  participants unwilling to fulfill the conditions of the 
209.30  employment or job search support plan. 
209.31     For purposes of eligibility for child care assistance under 
209.32  Minnesota Statutes, chapter 119B, all pilot program participants 
209.33  shall be eligible for the same benefits as MFIP recipients.  
209.34     The four counties, other than Dakota county, will be 
209.35  selected as pilot sites through a request for proposals (RFP) 
209.36  process.  Dakota county's proposal shall meet the same criteria 
210.1   required of those counties that respond to the RFP.  County 
210.2   proposals must define the nature and scope of the pilot and must 
210.3   be cost neutral to the state.  The commissioner must analyze 
210.4   proposals for system impacts.  The commissioner may authorize 
210.5   counties to implement these pilots when the state agency 
210.6   determines the county agency is prepared and any system changes 
210.7   are complete.  The commissioner will work with the counties in 
210.8   developing policies and guidelines for operating the pilots.  
210.9   The commissioner will provide technical assistance to county 
210.10  agencies to evaluate the effectiveness of the pilots.  The 
210.11  commissioner and county agencies shall report the evaluation 
210.12  findings to the chairs of the house health and human services 
210.13  and senate health and family security policy and fiscal 
210.14  committees by February 1, 2002.  An interim status report must 
210.15  be provided to the committee chairs by February 1, 2001. 
210.16     Sec. 30.  [REPORTS ON SAVE IMPLEMENTATION.] 
210.17     On January 15, 2003, and January 15, 2004, the commissioner 
210.18  shall report to the chairs of the house health and human 
210.19  services policy committee and the senate health and family 
210.20  security committee on the usage and costs of the SAVE program 
210.21  over the previous year.  These reports must include summary, 
210.22  nonidentifying information on the number of inquiries per month 
210.23  that were submitted to the SAVE system, the number of times 
210.24  secondary verifications were pursued as a result of the 
210.25  inquiries submitted to SAVE, and the number of times the county 
210.26  determined, as a result of information provided through the SAVE 
210.27  system, that an applicant to a program listed in section 256.01, 
210.28  subdivision 18, was ineligible for benefits due to the 
210.29  applicant's immigration status. 
210.30     Sec. 31.  [REPORT ON EFFECT OF ELIGIBILITY SUNSET DELAY.] 
210.31     The health care division of the department of human 
210.32  services shall conduct a study to identify the characteristics 
210.33  of the GA, GAMC, and GRH recipients for whom program eligibility 
210.34  has been extended past June 30, 2000, due to a change in state 
210.35  law.  Division staff must collect and report summary information 
210.36  about the affected recipients that includes, but is not limited 
211.1   to, information about the recipients':  current employment 
211.2   status and employment history; disabilities; past and present 
211.3   involvement in chemical dependency treatment or related 
211.4   services; criminal history, if any; and other barriers that 
211.5   affect the recipients' ability to live independently.  The 
211.6   report must not include uniquely identifying information about 
211.7   the affected recipients.  The report must also include 
211.8   information on the actual and projected costs of extending these 
211.9   recipients' eligibility for the GA, GAMC, and GRH programs past 
211.10  June 30, 2000.  The report must be submitted to the chairs of 
211.11  the house of representatives and senate policy and fiscal 
211.12  committees with jurisdiction over these programs by January 15, 
211.13  2001. 
211.14     Sec. 32.  [REPEALER.] 
211.15     Laws 1999, chapter 245, article 5, section 24, is repealed. 
211.16                             ARTICLE 11
211.17                       TECHNICAL CORRECTIONS 
211.18     Section 1.  Minnesota Statutes 1999 Supplement, section 
211.19  62J.535, subdivision 2, is amended to read: 
211.20     Subd. 2.  [COMPLIANCE.] (a) Concurrent with the effective 
211.21  dates date of required compliance established under United 
211.22  States Code, title 42, sections 1320d to 1320d-8, as amended 
211.23  from time to time, for uniform electronic billing standards, all 
211.24  health care providers must conform to the uniform billing 
211.25  standards developed under subdivision 1. 
211.26     (b) Notwithstanding paragraph (a), the requirements for the 
211.27  uniform remittance advice report shall be effective 12 months 
211.28  after the date of the required compliance of the standards for 
211.29  the electronic remittance advice transaction are effective under 
211.30  United States Code, title 42, sections 1320d to 1320d-8, as 
211.31  amended from time to time. 
211.32     <b>EFFECTIVE DATE:</b>  This section is effective the day 
211.33  following final enactment. 
211.34     Sec. 2.  Minnesota Statutes 1998, section 125A.74, 
211.35  subdivision 1, is amended to read: 
211.36     Subdivision 1.  [ELIGIBILITY.] A district may enroll as a 
212.1   provider in the medical assistance program and receive medical 
212.2   assistance payments for covered special education services 
212.3   provided to persons eligible for medical assistance under 
212.4   chapter 256B.  To receive medical assistance payments, the 
212.5   district must pay the nonfederal share of medical assistance 
212.6   services provided according to section 256B.0625, subdivision 
212.7   26, and comply with relevant provisions of state and federal 
212.8   statutes and regulations governing the medical assistance 
212.9   program. 
212.10     Sec. 3.  Minnesota Statutes 1998, section 125A.74, 
212.11  subdivision 2, is amended to read: 
212.12     Subd. 2.  [FUNDING.] A district that provides a covered 
212.13  service to an eligible person and complies with relevant 
212.14  requirements of the medical assistance program is entitled to 
212.15  receive payment for the service provided, including that portion 
212.16  of the payment services that will subsequently be reimbursed by 
212.17  the federal government, in the same manner as other medical 
212.18  assistance providers.  The school district is not required to 
212.19  provide matching funds or pay part of the costs of the service, 
212.20  as long as the rate charged for the service does not exceed 
212.21  medical assistance limits that apply to all medical assistance 
212.22  providers. 
212.23     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
212.24  144.395, is amended by adding a subdivision to read: 
212.25     Subd. 3.  [SUNSET.] The tobacco use prevention and local 
212.26  public health endowment fund expires June 30, 2015.  Upon 
212.27  expiration, the commissioner of finance shall transfer the 
212.28  principal and any remaining interest to the general fund.  
212.29     <b>EFFECTIVE DATE:</b>  This section is effective the day 
212.30  following final enactment. 
212.31     Sec. 5.  Minnesota Statutes 1999 Supplement, section 
212.32  144.396, subdivision 11, is amended to read: 
212.33     Subd. 11.  [AUDITS REQUIRED.] The legislative auditor shall 
212.34  audit tobacco use prevention and local public health endowment 
212.35  fund expenditures to ensure that the money is spent for tobacco 
212.36  use prevention measures and public health initiatives.  
213.1      <b>EFFECTIVE DATE:</b>  This section is effective the day 
213.2   following final enactment. 
213.3      Sec. 6.  Minnesota Statutes 1999 Supplement, section 
213.4   144.396, subdivision 12, is amended to read: 
213.5      Subd. 12.  [ENDOWMENT FUND NOT TO SUPPLANT EXISTING 
213.6   FUNDING.] Appropriations from the account tobacco use prevention 
213.7   and local public health endowment fund must not be used as a 
213.8   substitute for traditional sources of funding tobacco use 
213.9   prevention activities or public health initiatives.  Any local 
213.10  unit of government receiving money under this section must 
213.11  ensure that existing local financial efforts remain in place.  
213.12     <b>EFFECTIVE DATE:</b>  This section is effective the day 
213.13  following final enactment. 
213.14     Sec. 7.  Minnesota Statutes 1999 Supplement, section 
213.15  256B.0916, subdivision 1, is amended to read: 
213.16     Subdivision 1.  [REDUCTION OF WAITING LIST.] (a) The 
213.17  legislature recognizes that as of January 1, 1999, 3,300 persons 
213.18  with mental retardation or related conditions have been screened 
213.19  and determined eligible for the home and community-based waiver 
213.20  services program for persons with mental retardation or related 
213.21  conditions.  Many wait for several years before receiving 
213.22  service. 
213.23     (b) The waiting list for this program shall be reduced or 
213.24  eliminated by June 30, 2003.  In order to reduce the number of 
213.25  eligible persons waiting for identified services provided 
213.26  through the home and community-based waiver for persons with 
213.27  mental retardation or related conditions, during the period from 
213.28  July 1, 1999, to June 30, 2003, funding shall be increased to 
213.29  add 100 additional eligible persons each year beyond the 
213.30  February 1999 medical assistance forecast. 
213.31     (c) The commissioner shall allocate resources in such a 
213.32  manner as to use all resources budgeted for the home and 
213.33  community-based waiver for persons with mental retardation or 
213.34  related conditions according to the priorities listed in 
213.35  subdivision 2, paragraph (b), and then to serve other persons on 
213.36  the waiting list.  Resources allocated for a fiscal year to 
214.1   serve persons affected by public and private sector ICF/MR 
214.2   closures, but not expected to be expended for that purpose, must 
214.3   be reallocated within that fiscal year to serve other persons on 
214.4   the waiting list, and the number of waiver diversion slots shall 
214.5   be adjusted accordingly. 
214.6      (d) For fiscal year 2001, at least one-half of the increase 
214.7   in funding over the previous year provided in the February 1999 
214.8   medical assistance forecast for the home and community-based 
214.9   waiver for persons with mental retardation and related 
214.10  conditions, including changes made by the 1999 legislature, must 
214.11  be used to serve persons who are not affected by public and 
214.12  private sector ICF/MR closures. 
214.13     <b>EFFECTIVE DATE:</b>  This section is effective the day 
214.14  following final enactment. 
214.15     Sec. 8.  Minnesota Statutes 1999 Supplement, section 
214.16  256D.03, subdivision 4, is amended to read: 
214.17     Subd. 4.  [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] (a) 
214.18  For a person who is eligible under subdivision 3, paragraph (a), 
214.19  clause (3), general assistance medical care covers, except as 
214.20  provided in paragraph (c): 
214.21     (1) inpatient hospital services; 
214.22     (2) outpatient hospital services; 
214.23     (3) services provided by Medicare certified rehabilitation 
214.24  agencies; 
214.25     (4) prescription drugs and other products recommended 
214.26  through the process established in section 256B.0625, 
214.27  subdivision 13; 
214.28     (5) equipment necessary to administer insulin and 
214.29  diagnostic supplies and equipment for diabetics to monitor blood 
214.30  sugar level; 
214.31     (6) eyeglasses and eye examinations provided by a physician 
214.32  or optometrist; 
214.33     (7) hearing aids; 
214.34     (8) prosthetic devices; 
214.35     (9) laboratory and X-ray services; 
214.36     (10) physician's services; 
215.1      (11) medical transportation; 
215.2      (12) chiropractic services as covered under the medical 
215.3   assistance program; 
215.4      (13) podiatric services; 
215.5      (14) dental services; 
215.6      (15) outpatient services provided by a mental health center 
215.7   or clinic that is under contract with the county board and is 
215.8   established under section 245.62; 
215.9      (16) day treatment services for mental illness provided 
215.10  under contract with the county board; 
215.11     (17) prescribed medications for persons who have been 
215.12  diagnosed as mentally ill as necessary to prevent more 
215.13  restrictive institutionalization; 
215.14     (18) psychological services, medical supplies and 
215.15  equipment, and Medicare premiums, coinsurance and deductible 
215.16  payments; 
215.17     (19) medical equipment not specifically listed in this 
215.18  paragraph when the use of the equipment will prevent the need 
215.19  for costlier services that are reimbursable under this 
215.20  subdivision; 
215.21     (20) services performed by a certified pediatric nurse 
215.22  practitioner, a certified family nurse practitioner, a certified 
215.23  adult nurse practitioner, a certified obstetric/gynecological 
215.24  nurse practitioner, a certified neonatal nurse practitioner, or 
215.25  a certified geriatric nurse practitioner in independent 
215.26  practice, if (1) the service is otherwise covered under this 
215.27  chapter as a physician service, (2) a the service provided on an 
215.28  inpatient basis is not included as part of the cost for 
215.29  inpatient services included in the operating payment rate, and 
215.30  (3) the service is within the scope of practice of the nurse 
215.31  practitioner's license as a registered nurse, as defined in 
215.32  section 148.171; 
215.33     (21) services of a certified public health nurse or a 
215.34  registered nurse practicing in a public health nursing clinic 
215.35  that is a department of, or that operates under the direct 
215.36  authority of, a unit of government, if the service is within the 
216.1   scope of practice of the public health nurse's license as a 
216.2   registered nurse, as defined in section 148.171; and 
216.3      (22) telemedicine consultations, to the extent they are 
216.4   covered under section 256B.0625, subdivision 3b.  
216.5      (b) Except as provided in paragraph (c), for a recipient 
216.6   who is eligible under subdivision 3, paragraph (a), clause (1) 
216.7   or (2), general assistance medical care covers the services 
216.8   listed in paragraph (a) with the exception of special 
216.9   transportation services. 
216.10     (c) Gender reassignment surgery and related services are 
216.11  not covered services under this subdivision unless the 
216.12  individual began receiving gender reassignment services prior to 
216.13  July 1, 1995.  
216.14     (d) In order to contain costs, the commissioner of human 
216.15  services shall select vendors of medical care who can provide 
216.16  the most economical care consistent with high medical standards 
216.17  and shall where possible contract with organizations on a 
216.18  prepaid capitation basis to provide these services.  The 
216.19  commissioner shall consider proposals by counties and vendors 
216.20  for prepaid health plans, competitive bidding programs, block 
216.21  grants, or other vendor payment mechanisms designed to provide 
216.22  services in an economical manner or to control utilization, with 
216.23  safeguards to ensure that necessary services are provided.  
216.24  Before implementing prepaid programs in counties with a county 
216.25  operated or affiliated public teaching hospital or a hospital or 
216.26  clinic operated by the University of Minnesota, the commissioner 
216.27  shall consider the risks the prepaid program creates for the 
216.28  hospital and allow the county or hospital the opportunity to 
216.29  participate in the program in a manner that reflects the risk of 
216.30  adverse selection and the nature of the patients served by the 
216.31  hospital, provided the terms of participation in the program are 
216.32  competitive with the terms of other participants considering the 
216.33  nature of the population served.  Payment for services provided 
216.34  pursuant to this subdivision shall be as provided to medical 
216.35  assistance vendors of these services under sections 256B.02, 
216.36  subdivision 8, and 256B.0625.  For payments made during fiscal 
217.1   year 1990 and later years, the commissioner shall consult with 
217.2   an independent actuary in establishing prepayment rates, but 
217.3   shall retain final control over the rate methodology.  
217.4   Notwithstanding the provisions of subdivision 3, an individual 
217.5   who becomes ineligible for general assistance medical care 
217.6   because of failure to submit income reports or recertification 
217.7   forms in a timely manner, shall remain enrolled in the prepaid 
217.8   health plan and shall remain eligible for general assistance 
217.9   medical care coverage through the last day of the month in which 
217.10  the enrollee became ineligible for general assistance medical 
217.11  care. 
217.12     (e) The commissioner of human services may reduce payments 
217.13  provided under sections 256D.01 to 256D.21 and 261.23 in order 
217.14  to remain within the amount appropriated for general assistance 
217.15  medical care, within the following restrictions: 
217.16     (i) For the period July 1, 1985 to December 31, 1985, 
217.17  reductions below the cost per service unit allowable under 
217.18  section 256.966, are permitted only as follows:  payments for 
217.19  inpatient and outpatient hospital care provided in response to a 
217.20  primary diagnosis of chemical dependency or mental illness may 
217.21  be reduced no more than 30 percent; payments for all other 
217.22  inpatient hospital care may be reduced no more than 20 percent.  
217.23  Reductions below the payments allowable under general assistance 
217.24  medical care for the remaining general assistance medical care 
217.25  services allowable under this subdivision may be reduced no more 
217.26  than ten percent. 
217.27     (ii) For the period January 1, 1986 to December 31, 1986, 
217.28  reductions below the cost per service unit allowable under 
217.29  section 256.966 are permitted only as follows:  payments for 
217.30  inpatient and outpatient hospital care provided in response to a 
217.31  primary diagnosis of chemical dependency or mental illness may 
217.32  be reduced no more than 20 percent; payments for all other 
217.33  inpatient hospital care may be reduced no more than 15 percent.  
217.34  Reductions below the payments allowable under general assistance 
217.35  medical care for the remaining general assistance medical care 
217.36  services allowable under this subdivision may be reduced no more 
218.1   than five percent. 
218.2      (iii) For the period January 1, 1987 to June 30, 1987, 
218.3   reductions below the cost per service unit allowable under 
218.4   section 256.966 are permitted only as follows:  payments for 
218.5   inpatient and outpatient hospital care provided in response to a 
218.6   primary diagnosis of chemical dependency or mental illness may 
218.7   be reduced no more than 15 percent; payments for all other 
218.8   inpatient hospital care may be reduced no more than ten 
218.9   percent.  Reductions below the payments allowable under medical 
218.10  assistance for the remaining general assistance medical care 
218.11  services allowable under this subdivision may be reduced no more 
218.12  than five percent.  
218.13     (iv) For the period July 1, 1987 to June 30, 1988, 
218.14  reductions below the cost per service unit allowable under 
218.15  section 256.966 are permitted only as follows:  payments for 
218.16  inpatient and outpatient hospital care provided in response to a 
218.17  primary diagnosis of chemical dependency or mental illness may 
218.18  be reduced no more than 15 percent; payments for all other 
218.19  inpatient hospital care may be reduced no more than five percent.
218.20  Reductions below the payments allowable under medical assistance 
218.21  for the remaining general assistance medical care services 
218.22  allowable under this subdivision may be reduced no more than 
218.23  five percent. 
218.24     (v) For the period July 1, 1988 to June 30, 1989, 
218.25  reductions below the cost per service unit allowable under 
218.26  section 256.966 are permitted only as follows:  payments for 
218.27  inpatient and outpatient hospital care provided in response to a 
218.28  primary diagnosis of chemical dependency or mental illness may 
218.29  be reduced no more than 15 percent; payments for all other 
218.30  inpatient hospital care may not be reduced.  Reductions below 
218.31  the payments allowable under medical assistance for the 
218.32  remaining general assistance medical care services allowable 
218.33  under this subdivision may be reduced no more than five percent. 
218.34     (f) There shall be no copayment required of any recipient 
218.35  of benefits for any services provided under this subdivision.  A 
218.36  hospital receiving a reduced payment as a result of this section 
219.1   may apply the unpaid balance toward satisfaction of the 
219.2   hospital's bad debts. 
219.3      (g) (f) Any county may, from its own resources, provide 
219.4   medical payments for which state payments are not made. 
219.5      (h) (g) Chemical dependency services that are reimbursed 
219.6   under chapter 254B must not be reimbursed under general 
219.7   assistance medical care. 
219.8      (i) (h) The maximum payment for new vendors enrolled in the 
219.9   general assistance medical care program after the base year 
219.10  shall be determined from the average usual and customary charge 
219.11  of the same vendor type enrolled in the base year. 
219.12     (j) (i) The conditions of payment for services under this 
219.13  subdivision are the same as the conditions specified in rules 
219.14  adopted under chapter 256B governing the medical assistance 
219.15  program, unless otherwise provided by statute or rule. 
219.16     <b>EFFECTIVE DATE:</b>  This section is effective the day 
219.17  following final enactment. 
219.18     Sec. 9.  Laws 1999, chapter 245, article 1, section 2, 
219.19  subdivision 5, is amended to read: 
219.20  Subd. 5.  Basic Health Care Grants
219.21                Summary by Fund
219.22  General             867,174,000   916,234,000
219.23  Health Care
219.24  Access              116,490,000   145,469,000
219.25  The amounts that may be spent from this 
219.26  appropriation for each purpose are as 
219.27  follows: 
219.28  (a) Minnesota Care Grants-
219.29  Health Care
219.30  Access              116,490,000   145,469,000
219.31  [HOSPITAL INPATIENT COPAYMENTS.] The 
219.32  commissioner of human services may 
219.33  require hospitals to refund hospital 
219.34  inpatient copayments paid by enrollees 
219.35  pursuant to Minnesota Statutes, section 
219.36  256L.03, subdivision 5, between March 
219.37  1, 1999, and December 31, 1999.  If the 
219.38  commissioner requires hospitals to 
219.39  refund these copayments, the hospitals 
219.40  shall collect the copayment directly 
219.41  from the commissioner. 
219.42  [MINNESOTACARE OUTREACH FEDERAL 
219.43  MATCHING FUNDS.] Any federal matching 
219.44  funds received as a result of the 
219.45  MinnesotaCare outreach activities 
220.1   authorized by Laws 1997, chapter 225, 
220.2   article 7, section 2, subdivision 1, 
220.3   shall be deposited in the health care 
220.4   access fund and dedicated to the 
220.5   commissioner to be used for those 
220.6   outreach purposes. 
220.7   [FEDERAL RECEIPTS FOR ADMINISTRATION.] 
220.8   Receipts received as a result of 
220.9   federal participation pertaining to 
220.10  administrative costs of the Minnesota 
220.11  health care reform waiver shall be 
220.12  deposited as nondedicated revenue in 
220.13  the health care access fund.  Receipts 
220.14  received as a result of federal 
220.15  participation pertaining to grants 
220.16  shall be deposited in the federal fund 
220.17  and shall offset health care access 
220.18  funds for payments to providers. 
220.19  [HEALTH CARE ACCESS FUND.] The 
220.20  commissioner may expend money 
220.21  appropriated from the health care 
220.22  access fund for MinnesotaCare in either 
220.23  fiscal year of the biennium. 
220.24  (b) MA Basic Health Care Grants-
220.25  Families and Children
220.26  General             307,053,000   320,112,000
220.27  [COMMUNITY DENTAL CLINICS.] Of this 
220.28  appropriation, $600,000 in fiscal year 
220.29  2000 is for the commissioner to provide 
220.30  start-up grants to establish community 
220.31  dental clinics under Minnesota 
220.32  Statutes, section 256B.76, paragraph 
220.33  (b), clause (5) (4).  The commissioner 
220.34  shall award grants and shall require 
220.35  grant recipients to match the state 
220.36  grant with nonstate funding on a 
220.37  one-to-one basis.  This is a one-time 
220.38  appropriation and shall not become part 
220.39  of base level funding for this activity 
220.40  for the 2002-2003 biennium. 
220.41  (c) MA Basic Health Care Grants- 
220.42  Elderly & Disabled
220.43  General             404,814,000   451,928,000
220.44  [SURCHARGE COMPLIANCE.] In the event 
220.45  that federal financial participation in 
220.46  the Minnesota medical assistance 
220.47  program is reduced as a result of a 
220.48  determination that the surcharge and 
220.49  intergovernmental transfers governed by 
220.50  Minnesota Statutes, sections 256.9657 
220.51  and 256B.19 are out of compliance with 
220.52  United States Code, title 42, section 
220.53  1396b(w), or its implementing 
220.54  regulations or with any other federal 
220.55  law designed to restrict provider tax 
220.56  programs or intergovernmental 
220.57  transfers, the commissioner shall 
220.58  appeal the determination to the fullest 
220.59  extent permitted by law and may ratably 
220.60  reduce all medical assistance and 
220.61  general assistance medical care 
220.62  payments to providers other than the 
220.63  state of Minnesota in order to 
221.1   eliminate any shortfall resulting from 
221.2   the reduced federal funding.  Any 
221.3   amount later recovered through the 
221.4   appeals process shall be used to 
221.5   reimburse providers for any ratable 
221.6   reductions taken. 
221.7   [BLOOD PRODUCTS LITIGATION.] To the 
221.8   extent permitted by federal law, 
221.9   Minnesota Statutes, section 256.015, 
221.10  256B.042, and 256B.15, are waived as 
221.11  necessary for the limited purpose of 
221.12  resolving the state's claims in 
221.13  connection with In re Factor VIII or IX 
221.14  Concentrate Blood Products Litigation, 
221.15  MDL-986, No. 93-C7452 (N.D.III.). 
221.16  (d) General Assistance Medical Care
221.17  General             141,805,000   128,012,000
221.18  (e) Basic Health Care - Nonentitlement
221.19  General              13,502,000    16,182,000
221.20  [DENTAL ACCESS GRANT.] Of this 
221.21  appropriation, $75,000 is from the 
221.22  general fund to the commissioner in 
221.23  fiscal year 2000 for a grant to a 
221.24  nonprofit dental provider group 
221.25  operating a dental clinic in Clay 
221.26  county.  The grant must be used to 
221.27  increase access to dental services for 
221.28  recipients of medical assistance, 
221.29  general assistance medical care, and 
221.30  the MinnesotaCare program in the 
221.31  northwest area of the state.  This 
221.32  appropriation is available the day 
221.33  following final enactment. 
221.34     <b>EFFECTIVE DATE:</b>  This section is effective the day 
221.35  following final enactment. 
221.36     Sec. 11.  Laws 1999, chapter 245, article 1, section 2, 
221.37  subdivision 8, is amended to read: 
221.38  Subd. 8.  Continuing Care and 
221.39  Community Support Grants
221.40  General           1,174,195,000 1,259,767,000
221.41  Lottery Prize         1,158,000     1,158,000
221.42  The amounts that may be spent from this 
221.43  appropriation for each purpose are as 
221.44  follows: 
221.45  (a) Community Social Services
221.46  Block Grants
221.47      42,597,000     43,498,000 
221.48  [CSSA TRADITIONAL APPROPRIATION.] 
221.49  Notwithstanding Minnesota Statutes, 
221.50  section 256E.06, subdivisions 1 and 2, 
221.51  the appropriations available under that 
221.52  section in fiscal years 2000 and 2001 
221.53  must be distributed to each county 
221.54  proportionately to the aid received by 
222.1   the county in calendar year 1998.  The 
222.2   commissioner, in consultation with 
222.3   counties, shall study the formula 
222.4   limitations in subdivision 2 of that 
222.5   section, and report findings and any 
222.6   recommendations for revision of the 
222.7   CSSA formula and its formula limitation 
222.8   provisions to the legislature by 
222.9   January 15, 2000. 
222.10  (b) Consumer Support Grants
222.11       1,123,000      1,123,000 
222.12  (c) Aging Adult Service Grants
222.13       7,965,000      7,765,000 
222.14  [LIVING-AT-HOME/BLOCK NURSE PROGRAM.] 
222.15  Of the general fund appropriation, 
222.16  $120,000 in fiscal year 2000 and 
222.17  $120,000 in fiscal year 2001 is for the 
222.18  commissioner to provide funding to six 
222.19  additional living-at-home/block nurse 
222.20  programs.  This appropriation shall 
222.21  become part of the base for the 
222.22  2002-2003 biennium. 
222.23  [MINNESOTA SENIOR SERVICE CORPS.] Of 
222.24  this appropriation, $160,000 for the 
222.25  biennium is from the general fund to 
222.26  the commissioner for the following 
222.27  purposes: 
222.28  (a) $40,000 in fiscal year 2000 and 
222.29  $40,000 in fiscal year 2001 is to 
222.30  increase the hourly stipend by ten 
222.31  cents per hour in the foster 
222.32  grandparent program, the retired and 
222.33  senior volunteer program, and the 
222.34  senior companion program. 
222.35  (b) $40,000 in fiscal year 2000 and 
222.36  $40,000 in fiscal year 2001 is for a 
222.37  grant to the tri-valley opportunity 
222.38  council in Crookston to expand services 
222.39  in the ten-county area of northwestern 
222.40  Minnesota. 
222.41  (c) This appropriation shall become 
222.42  part of the base for the 2002-2003 
222.43  biennium.
222.44  [HEALTH INSURANCE COUNSELING.] Of this 
222.45  appropriation, $100,000 in fiscal year 
222.46  2000 and $100,000 in fiscal year 2001 
222.47  is from the general fund to the 
222.48  commissioner to transfer to the board 
222.49  on aging for the purpose of awarding 
222.50  health insurance counseling and 
222.51  assistance grants to the area agencies 
222.52  on aging providing state-funded health 
222.53  insurance counseling services.  Access 
222.54  to health insurance counseling programs 
222.55  shall be provided by the senior linkage 
222.56  line service of the board on aging and 
222.57  the area agencies on aging. The board 
222.58  on aging shall explore opportunities 
222.59  for obtaining alternative funding from 
222.60  nonstate sources, including 
222.61  contributions from individuals seeking 
223.1   health insurance counseling services.  
223.2   This is a one-time appropriation and 
223.3   shall not become part of base level 
223.4   funding for this activity for the 
223.5   2002-2003 biennium. 
223.6   (d) Deaf and Hard-of-Hearing 
223.7   Services Grants
223.8        1,859,000      1,760,000 
223.9   [SERVICES TO DEAF PERSONS WITH MENTAL 
223.10  ILLNESS.] Of this appropriation, 
223.11  $100,000 each year is to the 
223.12  commissioner for a grant to a nonprofit 
223.13  agency that currently serves deaf and 
223.14  hard-of-hearing adults with mental 
223.15  illness through residential programs 
223.16  and supported housing outreach.  The 
223.17  grant must be used to operate a 
223.18  community support program for persons 
223.19  with mental illness that is 
223.20  communicatively accessible for persons 
223.21  who are deaf or hard-of-hearing.  This 
223.22  is a one-time appropriation and shall 
223.23  not become part of base level funding 
223.24  for this activity for the 2002-2003 
223.25  biennium. 
223.26  [DEAF-BLIND ORIENTATION AND MOBILITY 
223.27  SERVICES.] Of this appropriation, 
223.28  $120,000 for the biennium is to the 
223.29  commissioner for a grant to Deaf-Blind 
223.30  Services Minnesota to hire an 
223.31  orientation and mobility specialist to 
223.32  work with deaf-blind people.  The 
223.33  specialist will provide services to 
223.34  deaf-blind Minnesotans, and training to 
223.35  teachers and rehabilitation counselors, 
223.36  on a statewide basis.  This is a 
223.37  one-time appropriation and shall not 
223.38  become part of base level funding for 
223.39  this activity for the 2002-2003 
223.40  biennium. 
223.41  (e) Mental Health Grants
223.42  General          45,169,000     46,528,000 
223.43  Lottery Prize     1,158,000      1,158,000 
223.44  [CRISIS HOUSING.] Of the general fund 
223.45  appropriation, $126,000 in fiscal year 
223.46  2000 and $150,000 in fiscal year 2001 
223.47  is to the commissioner for the adult 
223.48  mental illness crisis housing 
223.49  assistance program under Minnesota 
223.50  Statutes, section 245.99.  This 
223.51  appropriation shall become part of the 
223.52  base for the 2002-2003 biennium. 
223.53  [ADOLESCENT COMPULSIVE GAMBLING GRANT.] 
223.54  $150,000 in fiscal year 2000 and 
223.55  $150,000 in fiscal year 2001 is 
223.56  appropriated from the lottery prize 
223.57  fund created under Minnesota Statutes, 
223.58  section 349A.10, subdivision 2, to the 
223.59  commissioner for the purposes of a 
223.60  grant to a compulsive gambling council 
223.61  located in St. Louis county for a 
223.62  statewide compulsive gambling 
224.1   prevention and education project for 
224.2   adolescents. 
224.3   (f) Developmental Disabilities
224.4   Community Support Grants
224.5      9,323,000     10,958,000 
224.6   [CRISIS INTERVENTION PROJECT.] Of this 
224.7   appropriation, $40,000 in fiscal year 
224.8   2000 is to the commissioner for the 
224.9   action, support, and prevention project 
224.10  of southeastern Minnesota. 
224.11  [SILS FUNDING.] Of this appropriation, 
224.12  $1,000,000 each year is for 
224.13  semi-independent living services under 
224.14  Minnesota Statutes, section 252.275. 
224.15  This appropriation must be added to the 
224.16  base level funding for this activity 
224.17  for the 2002-2003 biennium.  Unexpended 
224.18  funds for fiscal year 2000 do not 
224.19  cancel but are available to the 
224.20  commissioner for this purpose in fiscal 
224.21  year 2001. 
224.22  [FAMILY SUPPORT GRANTS.] Of this 
224.23  appropriation, $1,000,000 in fiscal 
224.24  year 2000 and $2,500,000 in fiscal year 
224.25  2001 is to increase the availability of 
224.26  family support grants under Minnesota 
224.27  Statutes, section 252.32.  This 
224.28  appropriation must be added to the base 
224.29  level funding for this activity for the 
224.30  2002-2003 biennium.  Unexpended funds 
224.31  for fiscal year 2000 do not cancel but 
224.32  are available to the commissioner for 
224.33  this purpose in fiscal year 2001. 
224.34  (g) Medical Assistance Long-Term 
224.35  Care Waivers and Home Care
224.36     349,052,000    414,240,000 
224.37  [PROVIDER RATE INCREASES.] (a) The 
224.38  commissioner shall increase 
224.39  reimbursement rates by four percent the 
224.40  first year of the biennium and by three 
224.41  percent the second year for the 
224.42  providers listed in paragraph (b).  The 
224.43  increases shall be effective for 
224.44  services rendered on or after July 1 of 
224.45  each year. 
224.46  (b) The rate increases described in 
224.47  this section shall be provided to home 
224.48  and community-based waivered services 
224.49  for persons with mental retardation or 
224.50  related conditions under Minnesota 
224.51  Statutes, section 256B.501; home and 
224.52  community-based waivered services for 
224.53  the elderly under Minnesota Statutes, 
224.54  section 256B.0915; waivered services 
224.55  under community alternatives for 
224.56  disabled individuals under Minnesota 
224.57  Statutes, section 256B.49; community 
224.58  alternative care waivered services 
224.59  under Minnesota Statutes, section 
224.60  256B.49; traumatic brain injury 
224.61  waivered services under Minnesota 
224.62  Statutes, section 256B.49; nursing 
225.1   services and home health services under 
225.2   Minnesota Statutes, section 256B.0625, 
225.3   subdivision 6a; personal care services 
225.4   and nursing supervision of personal 
225.5   care services under Minnesota Statutes, 
225.6   section 256B.0625, subdivision 19a; 
225.7   private-duty nursing services under 
225.8   Minnesota Statutes, section 256B.0625, 
225.9   subdivision 7; day training and 
225.10  habilitation services for adults with 
225.11  mental retardation or related 
225.12  conditions under Minnesota Statutes, 
225.13  sections 252.40 to 252.46; alternative 
225.14  care services under Minnesota Statutes, 
225.15  section 256B.0913; adult residential 
225.16  program grants under Minnesota Rules, 
225.17  parts 9535.2000 to 9535.3000; adult and 
225.18  family community support grants under 
225.19  Minnesota Rules, parts 9535.1700 to 
225.20  9535.1760; semi-independent living 
225.21  services under Minnesota Statutes, 
225.22  section 252.275, including SILS funding 
225.23  under county social services grants 
225.24  formerly funded under Minnesota 
225.25  Statutes, chapter 256I; and community 
225.26  support services for deaf and 
225.27  hard-of-hearing adults with mental 
225.28  illness who use or wish to use sign 
225.29  language as their primary means of 
225.30  communication. 
225.31  (c) The commissioner shall increase 
225.32  reimbursement rates by two percent for 
225.33  the group residential housing 
225.34  supplementary service rate under 
225.35  Minnesota Statutes, section 256I.05, 
225.36  subdivision 1a, for services rendered 
225.37  on or after January 1, 2000. 
225.38  (d) Providers that receive a rate 
225.39  increase under this section shall use 
225.40  at least 80 percent of the additional 
225.41  revenue to increase the compensation 
225.42  paid to employees other than the 
225.43  administrator and central office staff. 
225.44  (e) A copy of the provider's plan for 
225.45  complying with paragraph (d) must be 
225.46  made available to all employees.  This 
225.47  must be done by giving each employee a 
225.48  copy or by posting it in an area of the 
225.49  provider's operation to which all 
225.50  employees have access.  If an employee 
225.51  does not receive the salary adjustment 
225.52  described in the plan and is unable to 
225.53  resolve the problem with the provider, 
225.54  the employee may contact the employee's 
225.55  union representative.  If the employee 
225.56  is not covered by a collective 
225.57  bargaining agreement, the employee may 
225.58  contact the commissioner at a phone 
225.59  number provided by the commissioner and 
225.60  included in the provider's plan. 
225.61  (f) Section 13, sunset of uncodified 
225.62  language, does not apply to this 
225.63  provision. 
225.64  [DEVELOPMENTAL DISABILITIES WAIVER 
225.65  SLOTS.] Of this appropriation, 
225.66  $1,746,000 in fiscal year 2000 and 
226.1   $4,683,000 in fiscal year 2001 is to 
226.2   increase the availability of home and 
226.3   community-based waiver services for 
226.4   persons with mental retardation or 
226.5   related conditions.  
226.6   (h) Medical Assistance Long-Term
226.7   Care Facilities
226.8      546,228,000    558,349,000 
226.9   [MORATORIUM EXCEPTIONS.] Of this 
226.10  appropriation, $250,000 in fiscal year 
226.11  2000 and $250,000 in fiscal year 2001 
226.12  is from the general fund to the 
226.13  commissioner for the medical assistance 
226.14  costs of moratorium exceptions approved 
226.15  by the commissioner of health under 
226.16  Minnesota Statutes, section 144A.073.  
226.17  Unexpended money appropriated for 
226.18  fiscal year 2000 shall not cancel but 
226.19  shall be available for fiscal year 2001.
226.20  [NURSING FACILITY OPERATED BY THE RED 
226.21  LAKE BAND OF CHIPPEWA INDIANS.] (1) The 
226.22  medical assistance payment rates for 
226.23  the 47-bed nursing facility operated by 
226.24  the Red Lake Band of Chippewa Indians 
226.25  must be calculated according to 
226.26  allowable reimbursement costs under the 
226.27  medical assistance program, as 
226.28  specified in Minnesota Statutes, 
226.29  section 246.50, and are subject to the 
226.30  facility-specific Medicare upper limits.
226.31  (2) In addition, the commissioner shall 
226.32  make available an operating payment 
226.33  rate adjustment effective July 1, 1999, 
226.34  and July 1, 2000, that is equal to the 
226.35  adjustment provided under Minnesota 
226.36  Statutes, section 256B.431, subdivision 
226.37  28.  The commissioner must use the 
226.38  facility's final 1998 and 1999 Medicare 
226.39  cost reports, respectively, to 
226.40  calculate the adjustment.  The 
226.41  adjustment shall be available based on 
226.42  a plan submitted and approved according 
226.43  to Minnesota Statutes, section 
226.44  256B.431, subdivision 28.  Section 13, 
226.45  sunset of uncodified language, does not 
226.46  apply to this paragraph. 
226.47  [COSTS RELATED TO FACILITY 
226.48  CERTIFICATION.] Of this appropriation, 
226.49  $168,000 is for the costs of providing 
226.50  one-half the state share of medical 
226.51  assistance reimbursement for 
226.52  residential and day habilitation 
226.53  services under article 3, section 39 43.
226.54  This amount is available the day 
226.55  following final enactment. 
226.56  (i) Alternative Care Grants  
226.57  General              60,873,000    59,981,000
226.58  [ALTERNATIVE CARE TRANSFER.] Any money 
226.59  allocated to the alternative care 
226.60  program that is not spent for the 
226.61  purposes indicated does not cancel but 
226.62  shall be transferred to the medical 
227.1   assistance account. 
227.2   [PREADMISSION SCREENING AMOUNT.] The 
227.3   preadmission screening payment to all 
227.4   counties shall continue at the payment 
227.5   amount in effect for fiscal year 1999. 
227.6   [ALTERNATIVE CARE APPROPRIATION.] The 
227.7   commissioner may expend the money 
227.8   appropriated for the alternative care 
227.9   program for that purpose in either year 
227.10  of the biennium. 
227.11  (j) Group Residential Housing
227.12  General              66,477,000    70,390,000
227.13  [GROUP RESIDENTIAL FACILITY FOR WOMEN 
227.14  IN RAMSEY COUNTY.] (a) Notwithstanding 
227.15  Minnesota Statutes 1998, section 
227.16  256I.05, subdivision 1d, the new 23-bed 
227.17  group residential facility for women in 
227.18  Ramsey county, with approval by the 
227.19  county agency, may negotiate a 
227.20  supplementary service rate in addition 
227.21  to the board and lodging rate for 
227.22  facilities licensed and registered by 
227.23  the Minnesota department of health 
227.24  under Minnesota Statutes, section 15.17 
227.25  157.17.  The supplementary service rate 
227.26  shall not exceed $564 per person per 
227.27  month and the total rate may not exceed 
227.28  $1,177 per person per month. 
227.29  (b) Of the general fund appropriation, 
227.30  $19,000 in fiscal year 2000 and $38,000 
227.31  in fiscal year 2001 is to the 
227.32  commissioner for the costs associated 
227.33  with paragraph (a).  This appropriation 
227.34  shall become part of the base for the 
227.35  2002-2003 biennium. 
227.36  (k) Chemical Dependency
227.37  Entitlement Grants
227.38  General              36,751,000    38,847,000
227.39  (l) Chemical Dependency 
227.40  Nonentitlement Grants
227.41  General               6,778,000     6,328,000
227.42  [CHEMICAL DEPENDENCY SERVICES.] Of this 
227.43  appropriation, $450,000 in fiscal year 
227.44  2000 is to the commissioner for 
227.45  chemical dependency services to persons 
227.46  who qualify under Minnesota Statutes, 
227.47  section 254B.04, subdivision 1, 
227.48  paragraph (b). 
227.49     <b>EFFECTIVE DATE:</b>  This section is effective the day 
227.50  following final enactment. 
227.51     Sec. 10.  Laws 1999, chapter 245, article 4, section 121, 
227.52  is amended to read: 
227.53     Sec. 121.  [EFFECTIVE DATE.] 
227.54     (a) Sections 3, 4, 5, 45, 95, and 97, subdivision 3, 
228.1   paragraph (d), are effective July 1, 2000. 
228.2      (b) Section 56 is effective upon federal approval. 
228.3      <b>EFFECTIVE DATE:</b>  This section is effective the day 
228.4   following final enactment. 
228.5      Sec. 11.  [REPEALER.] 
228.6      (a) Minnesota Statutes 1999 Supplement, section 144.396, 
228.7   subdivision 13, is repealed.  
228.8      (b) Laws 1997, chapter 203, article 7, section 27, is 
228.9   repealed. 
228.10     <b>EFFECTIVE DATE:</b>  This section is effective the day 
228.11  following final enactment. 
228.12                             ARTICLE 12 
228.13                          STATE GOVERNMENT 
228.14                           APPROPRIATIONS 
228.15  Section 1.  [APPROPRIATIONS.] 
228.16     The sums shown in the columns marked "APPROPRIATIONS" are 
228.17  appropriated from the general fund, or any other fund named, to 
228.18  the agencies and for the purposes specified in this article, to 
228.19  be available for the fiscal years indicated for each purpose.  
228.20  The figures "2000" and "2001" mean that the appropriation or 
228.21  appropriations listed under them are available for the fiscal 
228.22  year ending June 30, 2000, or June 30, 2001, respectively, and 
228.23  if an earlier appropriation was made for that purpose for that 
228.24  year, the appropriation in this article is added to it.  Where a 
228.25  dollar amount appears in parentheses, it means a reduction of an 
228.26  earlier appropriation for that purpose for that year. 
228.27                          SUMMARY BY FUND 
228.28                                                       BIENNIAL
228.29                            2000          2001           TOTAL
228.30  General              $  2,994,000   $  (524,000)   $  2,470,000
228.31  Special Revenue             -0-         249,000         249,000
228.32  TOTAL                $  2,994,000   $  (275,000)   $  2,719,000
228.33                                             APPROPRIATIONS 
228.34                                         Available for the Year 
228.35                                             Ending June 30 
228.36                                            2000         2001 
228.37                                      $              $       
228.38  Sec. 2.  SECRETARY OF STATE            4,000,000          -0-  
229.1   To construct and maintain the Uniform 
229.2   Commercial Code central filing system 
229.3   required by Laws 2000, chapter 399, to 
229.4   be available until June 30, 2001. 
229.5   Sec. 3.  OFFICE OF STRATEGIC AND
229.6   LONG-RANGE PLANNING                      200,000          -0-  
229.7   For grants of $50,000 each to regional 
229.8   development commissions or, in regions 
229.9   not served by regional development 
229.10  commissions, to regional organizations 
229.11  selected by the director, to support 
229.12  planning work on behalf of local units 
229.13  of government.  A region that received 
229.14  a grant from the appropriation in Laws 
229.15  1999, chapter 250, article 1, section 
229.16  11 or 14, for regional planning is not 
229.17  eligible to receive a grant from this 
229.18  appropriation.  This appropriation is 
229.19  available until June 30, 2001.  The 
229.20  planning work must include, but need 
229.21  not be limited to:  
229.22  (1) development of local zoning 
229.23  ordinances; 
229.24  (2) land use plans; 
229.25  (3) community or economic development 
229.26  plans; 
229.27  (4) transportation and transit plans; 
229.28  (5) solid waste management plans; 
229.29  (6) wastewater management plans; 
229.30  (7) workforce development plans; 
229.31  (8) housing development plans or market 
229.32  analysis; 
229.33  (9) rural health service and senior 
229.34  nutrition plans; or 
229.35  (10) natural resources management plans.
229.36  Sec. 4.  ADMINISTRATION              
229.37  Subdivision 1.  Office of   
229.38  Technology Long-Range Plan                               
229.39  Notwithstanding Laws 1999, chapter 250, 
229.40  article 1, section 12, subdivision 3, 
229.41  the appropriation for the second year 
229.42  is available for expenditure. 
229.43  Subd. 2.  Metropolitan    
229.44  Radio Board                                -0-          249,000
229.45  This appropriation is from the special 
229.46  revenue fund. 
229.47  This appropriation is canceled if a law 
229.48  is enacted authorizing a statewide 800 
229.49  megahertz radio system. 
229.50  Subd. 3.  Year 2000 Contingency Surplus                        
229.51  Notwithstanding Laws 1999, chapter 250, 
230.1   article 1, section 12, subdivision 4, 
230.2   of the unexpended balance of the 
230.3   appropriation to address year 2000 
230.4   changes, $1,400,000 is reappropriated 
230.5   to enable the electronic delivery of 
230.6   government services and $600,000 is 
230.7   added to the appropriation to the 
230.8   commissioner of revenue for the income 
230.9   tax reengineering initiative in Laws 
230.10  1999, chapter 250, article 1, section 
230.11  16, subdivision 2.  These 
230.12  appropriations are available until June 
230.13  30, 2003. 
230.14  Subd. 4.  Data Practices Base Adjustment                       
230.15  If H.F. No. 3501 is enacted by the 2000 
230.16  legislature, the commissioner of 
230.17  finance shall not treat any costs 
230.18  imposed by it as a base adjustment to 
230.19  the budget of the department of 
230.20  administration for fiscal year 2002 or 
230.21  2003.  
230.22  Subd. 5.  Facilities Management            -0-        1,268,000
230.23  To be added to the appropriation for 
230.24  office space costs of the legislature 
230.25  and veterans organizations, for 
230.26  ceremonial space, and for statutorily 
230.27  free space, in Laws 1999, chapter 250, 
230.28  article 1, section 12, subdivision 5.  
230.29  This is a one-time appropriation. 
230.30  Sec. 5.  CAMPAIGN FINANCE AND
230.31  DISCLOSURE BOARD                          38,000          -0-
230.32  For legal costs for the board's defense 
230.33  of a constitutionality challenge, to be 
230.34  available until June 30, 2001. 
230.35  Sec. 6.  EMPLOYEE RELATIONS               -0-          100,000
230.36  To pay the costs of conducting the 
230.37  postretirement and active employee 
230.38  health care study and preparing the 
230.39  report required by 2000 S.F. No. 2796, 
230.40  article 5, section 1.  The retirement 
230.41  funds participating in the study may 
230.42  contribute a total of $100,000 
230.43  additional money to help pay these 
230.44  costs. 
230.45  Sec. 7.  GAMBLING CONTROL
230.46  BOARD                                     90,000        -0-
230.47  For workers' compensation claims.  
230.48  Money not expended in the first year is 
230.49  available for expenditure in the second 
230.50  year. 
230.51  Sec. 8.  MINNEAPOLIS EMPLOYEES
230.52  RETIREMENT FUND                        (1,334,000)   (1,892,000)
230.53  This is a reduction in payments made to 
230.54  the Minneapolis employees retirement 
230.55  fund under Minnesota Statutes, section 
230.56  422A.101, subdivision 3.  The reduction 
230.57  for fiscal year 2002 is estimated to be 
230.58  $1,892,000 and the reduction for fiscal 
230.59  year 2003 is estimated to be $1,892,000.
231.1      Sec. 9.  Minnesota Statutes 1999 Supplement, section 
231.2   16A.103, subdivision 1, is amended to read: 
231.3      Subdivision 1.  [STATE REVENUE AND EXPENDITURES.] In 
231.4   February and November each year, the commissioner shall prepare 
231.5   a forecast of state revenue and expenditures.  The November 
231.6   forecast must be delivered to the legislature and governor no 
231.7   later than the end of the first week of December.  The February 
231.8   forecast must be delivered to the legislature and governor by 
231.9   the end of February.  Forecasts must be delivered to the 
231.10  legislature and governor on the same day.  If requested by the 
231.11  legislative commission on planning and fiscal policy, delivery 
231.12  to the legislature must include a presentation to the commission.
231.13     Subd. 1a.  [FORECAST PARAMETERS.] The forecast must assume 
231.14  the continuation of current laws and reasonable estimates of 
231.15  projected growth in the national and state economies and 
231.16  affected populations.  Revenue must be estimated for all sources 
231.17  provided for in current law.  Expenditures must be estimated for 
231.18  all obligations imposed by law and those projected to occur as a 
231.19  result of inflation and variables outside the control of the 
231.20  legislature.  
231.21     Subd. 1b.  [FORECAST VARIABLE.] In determining the rate of 
231.22  inflation, the application of inflation, the amount of state 
231.23  bonding as it affects debt service, the calculation of 
231.24  investment income, and the other variables to be included in the 
231.25  expenditure part of the forecast, the commissioner must consult 
231.26  with the chair chairs and lead minority members of the senate 
231.27  state government finance committee, and the chair of the house 
231.28  committee on ways and means committee, and house and 
231.29  senate legislative fiscal staff.  This consultation must occur 
231.30  at least three weeks before the forecast is to be released.  No 
231.31  later than two weeks prior to the release of the forecast, the 
231.32  commissioner must inform the chairs and lead minority members of 
231.33  the senate state government finance committee and the house ways 
231.34  and means committee, and legislative fiscal staff of any changes 
231.35  in these variables from the previous forecast. 
231.36     Subd. 1c.  [EXPENDITURE DATA.] State agencies must submit 
232.1   any revisions in expenditure data the commissioner determines 
232.2   necessary for the forecast to the commissioner at least four 
232.3   weeks prior to the release of the forecast.  The information 
232.4   submitted by state agencies and any modifications to that 
232.5   information made by the commissioner must be made available to 
232.6   legislative fiscal staff no later than three weeks prior to the 
232.7   release of the forecast. 
232.8      Subd. 1d.  [REVENUE DATA.] On a monthly basis, the 
232.9   commissioner must provide legislative fiscal staff with an 
232.10  update of the previous month's state revenues no later than 12 
232.11  days after the end of that month. 
232.12     Subd. 1e.  [ECONOMIC INFORMATION.] The commissioner must 
232.13  review economic information including economic forecasts with 
232.14  legislative fiscal staff no later than two weeks before the 
232.15  forecast is released.  The commissioner must invite the chairs 
232.16  and lead minority members of the senate state government finance 
232.17  committee and the house ways and means committee, and 
232.18  legislative fiscal staff to attend any meetings held with 
232.19  outside economic advisors.  The commissioner must provide 
232.20  legislative fiscal staff with monthly economic forecast 
232.21  information received from outside sources. 
232.22     Subd. 1f.  [PERSONAL INCOME.] In addition, the commissioner 
232.23  shall forecast Minnesota personal income for each of the years 
232.24  covered by the forecast and include these estimates in the 
232.25  forecast documents. 
232.26     Subd. 1g.  [PERIOD TO BE FORECAST.] A forecast prepared 
232.27  during the first fiscal year of a biennium must cover that 
232.28  biennium and the next biennium.  A forecast prepared during the 
232.29  second fiscal year of a biennium must cover that biennium and 
232.30  the next two bienniums. 
232.31     Sec. 10.  Minnesota Statutes 1998, section 16A.11, 
232.32  subdivision 3, is amended to read: 
232.33     Subd. 3.  [PART TWO:  DETAILED BUDGET.] (a) Part two of the 
232.34  budget, the detailed budget estimates both of expenditures and 
232.35  revenues, must contain any statements on the financial plan 
232.36  which the governor believes desirable or which may be required 
233.1   by the legislature.  The detailed estimates shall include the 
233.2   governor's budget arranged in tabular form. 
233.3      (b) The detailed estimates must include a separate line 
233.4   listing the total number of professional or technical service 
233.5   contracts and the total cost of those contracts for the prior 
233.6   biennium and the projected number of professional or technical 
233.7   service contracts and the projected costs of those contracts for 
233.8   the current and upcoming biennium.  They must also include a 
233.9   summary of the personnel employed by the agency, reflected as 
233.10  full-time equivalent positions, and the number of professional 
233.11  or technical service consultants for the current biennium. 
233.12     (c) The detailed estimates for internal service funds must 
233.13  include the number of full-time equivalents by program; detail 
233.14  on any loans from the general fund, including dollar amounts by 
233.15  program; proposed investments in technology or equipment of 
233.16  $100,000 or more; an explanation of any operating losses or 
233.17  increases in retained earnings; and a history of the rates that 
233.18  have been charged, with an explanation of any rate changes and 
233.19  the impact of the rate changes on affected agencies. 
233.20     Sec. 11.  Minnesota Statutes 1998, section 16A.126, 
233.21  subdivision 2, is amended to read: 
233.22     Subd. 2.  [IMMEDIATE NEEDS.] To reduce reserves for 
233.23  unforeseen needs, and so reduce these rates, the commissioner 
233.24  may transfer money from the general fund to a revolving fund.  
233.25  Before doing so, the commissioner must decide there is not 
233.26  enough money in the revolving fund for an immediate, necessary 
233.27  expenditure.  The amount necessary to make the transfer is 
233.28  appropriated from the general fund to the commissioner of 
233.29  finance.  The commissioner shall report the amount and purpose 
233.30  of the transfer to the chair of the committee or division in the 
233.31  senate and house of representatives with primary jurisdiction 
233.32  over the budget of the department of finance. 
233.33     Sec. 12.  Minnesota Statutes 1999 Supplement, section 
233.34  16A.129, subdivision 3, is amended to read: 
233.35     Subd. 3.  [CASH ADVANCES.] When the operations of any 
233.36  nongeneral fund account would be impeded by projected cash 
234.1   deficiencies resulting from delays in the receipt of grants, 
234.2   dedicated income, or other similar receivables, and when the 
234.3   deficiencies would be corrected within the budget period 
234.4   involved, the commissioner of finance may use general fund cash 
234.5   reserves to meet cash demands.  If funds are transferred from 
234.6   the general fund to meet cash flow needs, the cash flow 
234.7   transfers must be returned to the general fund as soon as 
234.8   sufficient cash balances are available in the account to which 
234.9   the transfer was made.  The fund to which general fund cash was 
234.10  advanced must pay interest on the cash advance at a rate 
234.11  comparable to the rate earned by the state on invested 
234.12  treasurer's cash, as determined monthly by the commissioner.  An 
234.13  amount necessary to pay the interest is appropriated from the 
234.14  nongeneral fund to which the cash advance was made.  Any 
234.15  interest earned on general fund cash flow transfers accrues to 
234.16  the general fund and not to the accounts or funds to which the 
234.17  transfer was made.  The commissioner may advance general fund 
234.18  cash reserves to nongeneral fund accounts where the receipts 
234.19  from other governmental units cannot be collected within the 
234.20  budget period. 
234.21     Sec. 13.  [16A.633] [CAPITAL FUNDING CONTINGENT ON 
234.22  MAINTAINING DATA.] 
234.23     Subdivision 1.  [STATE AGENCIES.] Each state agency shall 
234.24  provide to the commissioner of administration the data necessary 
234.25  for the commissioner to maintain the department's database on 
234.26  the location, description, and condition of state-owned 
234.27  facilities.  The data must be provided by September 1 each 
234.28  year.  The commissioner of administration must maintain both the 
234.29  current inventory data and historical data.  A state agency is 
234.30  not eligible to receive capital funding unless the agency has 
234.31  provided the data required. 
234.32     Subd. 2.  [MINNESOTA STATE COLLEGES AND UNIVERSITIES.] The 
234.33  board of trustees of the Minnesota state colleges and 
234.34  universities shall establish and maintain data on the location, 
234.35  description, and condition of board-owned facilities that is 
234.36  comparable with the database established by the department of 
235.1   administration.  The data must be updated annually and the board 
235.2   must maintain both current inventory data and historical data.  
235.3   The board is not eligible to receive capital funding unless the 
235.4   board has established and maintains the data required. 
235.5      Subd. 3.  [UNIVERSITY OF MINNESOTA.] The board of regents 
235.6   of the University of Minnesota is requested to establish and 
235.7   maintain data on the location, description, and condition of 
235.8   university-owned facilities that is comparable with the database 
235.9   established by the department of administration.  The university 
235.10  is requested to update the data annually and maintain both 
235.11  current inventory data and historical data.  The board of 
235.12  regents is not eligible to receive capital funding unless the 
235.13  board has established and maintains the data required. 
235.14     Sec. 14.  Minnesota Statutes 1998, section 16B.052, is 
235.15  amended to read: 
235.16     16B.052 [AUTHORITY TO TRANSFER FUNDS.] 
235.17     The commissioner may, with the approval of the commissioner 
235.18  of finance, transfer from an internal service or enterprise fund 
235.19  account to another internal service or enterprise fund account, 
235.20  any contributed capital appropriated by the legislature.  The 
235.21  transfer may be made only to provide working capital or positive 
235.22  cash flow in the account to which the money is transferred.  The 
235.23  commissioner shall report the amount and purpose of the transfer 
235.24  to the chair of the committee or division in the senate and 
235.25  house of representatives with primary jurisdiction over the 
235.26  budget of the department of administration.  The transfer must 
235.27  be repaid within 18 months.  
235.28     Sec. 15.  Minnesota Statutes 1998, section 16B.48, 
235.29  subdivision 4, is amended to read: 
235.30     Subd. 4.  [REIMBURSEMENTS.] Except as specifically provided 
235.31  otherwise by law, each agency shall reimburse intertechnologies 
235.32  and general services revolving funds for the cost of all 
235.33  services, supplies, materials, labor, and depreciation of 
235.34  equipment, including reasonable overhead costs, which the 
235.35  commissioner is authorized and directed to furnish an agency.  
235.36  The cost of all publications or other materials produced by the 
236.1   commissioner and financed from the general services revolving 
236.2   fund must include reasonable overhead costs.  The commissioner 
236.3   of administration shall report the rates to be charged for each 
236.4   revolving fund no later than July 1 each year to the chair of 
236.5   the committee or division in the senate and house of 
236.6   representatives with primary jurisdiction over the budget of the 
236.7   department of administration.  The commissioner of finance shall 
236.8   make appropriate transfers to the revolving funds described in 
236.9   this section when requested by the commissioner of 
236.10  administration.  The commissioner of administration may make 
236.11  allotments, encumbrances, and, with the approval of the 
236.12  commissioner of finance, disbursements in anticipation of such 
236.13  transfers.  In addition, the commissioner of administration, 
236.14  with the approval of the commissioner of finance, may require an 
236.15  agency to make advance payments to the revolving funds in this 
236.16  section sufficient to cover the agency's estimated obligation 
236.17  for a period of at least 60 days.  All reimbursements and other 
236.18  money received by the commissioner of administration under this 
236.19  section must be deposited in the appropriate revolving fund.  
236.20  Any earnings remaining in the fund established to account for 
236.21  the documents service prescribed by section 16B.51 at the end of 
236.22  each fiscal year not otherwise needed for present or future 
236.23  operations, as determined by the commissioners of administration 
236.24  and finance, must be transferred to the general fund.  
236.25     Sec. 16.  Minnesota Statutes 1998, section 16B.485, is 
236.26  amended to read: 
236.27     16B.485 [INTERFUND LOANS.] 
236.28     The commissioner may, with the approval of the commissioner 
236.29  of finance, make loans from an internal service or enterprise 
236.30  fund to another internal service or enterprise fund, and the 
236.31  amount necessary is appropriated from the fund that makes the 
236.32  loan.  The commissioner shall report the amount and purpose of 
236.33  the loan to the chair of the committee or division in the senate 
236.34  and house of representatives with primary jurisdiction over the 
236.35  budget of the department of administration.  The term of a loan 
236.36  made under this section must be not more than 24 months. 
237.1      Sec. 17.  Minnesota Statutes 1998, section 16E.04, is 
237.2   amended by adding a subdivision to read: 
237.3      Subd. 3.  [RISK ASSESSMENT AND MITIGATION.] (a) A risk 
237.4   assessment and risk mitigation plan are required for an 
237.5   information systems development project estimated to cost more 
237.6   than $1,000,000 that is undertaken by a state agency in the 
237.7   executive or judicial branch or by a constitutional officer.  
237.8   The commissioner of administration must contract with an entity 
237.9   outside of state government to conduct the assessment and 
237.10  prepare the mitigation plan for a project estimated to cost more 
237.11  than $5,000,000.  The outside entity conducting the risk 
237.12  assessment and preparing the mitigation plan must not have any 
237.13  other direct or indirect financial interest in the project.  The 
237.14  risk assessment and risk mitigation plan must provide for 
237.15  periodic monitoring by the commissioner until the project is 
237.16  completed. 
237.17     (b) The risk assessment and risk mitigation plan must be 
237.18  paid for with money appropriated for the information systems 
237.19  development project.  No more than ten percent of the amount 
237.20  anticipated to be spent on the project, other than the money 
237.21  spent on the risk assessment and risk mitigation plan, may be 
237.22  spent until the risk assessment and mitigation plan are reported 
237.23  to the commissioner of administration and the commissioner has 
237.24  approved the risk mitigation plan.  
237.25     Sec. 18.  Minnesota Statutes 1998, section 422A.101, 
237.26  subdivision 3, is amended to read: 
237.27     Subd. 3.  [STATE CONTRIBUTIONS.] (a) Subject to the 
237.28  limitation set forth in paragraph (c), the state shall pay to 
237.29  the Minneapolis employees retirement fund annually an amount 
237.30  equal to the amount calculated under paragraph (b). 
237.31     (b) The payment amount is an amount equal to the financial 
237.32  requirements of the Minneapolis employees retirement fund 
237.33  reported in the actuarial valuation of the fund prepared by the 
237.34  commission-retained actuary pursuant to section 356.215 for the 
237.35  most recent year but based on a target date for full 
237.36  amortization of the unfunded actuarial accrued liabilities by 
238.1   June 30, 2020, less the amount of employee contributions 
238.2   required pursuant to section 422A.10, and the amount of employer 
238.3   contributions required pursuant to subdivisions 1a, 2, and 2a.  
238.4   Payments shall be made in four equal installments, occurring on 
238.5   March 15, July 15, September 15, and November 15 annually.  
238.6      (c) The annual state contribution under this subdivision 
238.7   may not exceed $10,455,000 through fiscal year 1998 and 
238.8   $9,000,000 beginning in fiscal year 1999, plus the cost of the 
238.9   annual supplemental benefit determined under section 356.865. 
238.10     (d) If the amount determined under paragraph (b) exceeds 
238.11  $11,910,000, the excess must be allocated to and paid to the 
238.12  fund by the employers identified in subdivisions 1a and 2, other 
238.13  than units of metropolitan government.  Each employer's share of 
238.14  the excess is proportionate to the employer's share of the 
238.15  fund's unfunded actuarial accrued liability as disclosed in the 
238.16  annual actuarial valuation prepared by the actuary retained by 
238.17  the legislative commission on pensions and retirement compared 
238.18  to the total unfunded actuarial accrued liability attributed to 
238.19  all employers identified in subdivisions 1a and 2, other than 
238.20  units of metropolitan government.  Payments must be made in 
238.21  equal installments as set forth in paragraph (b). 
238.22     Sec. 19.  Laws 1999, chapter 250, article 1, section 11, is 
238.23  amended to read: 
238.24  Sec. 11.  OFFICE OF STRATEGIC 
238.25  AND LONG-RANGE PLANNING                6,891,000      4,417,000
238.26  $100,000 the first year is to integrate 
238.27  the office's information technology and 
238.28  is available until June 30, 2003.  The 
238.29  director shall report on the progress 
238.30  of the unit to the chairs of the 
238.31  legislative committees responsible for 
238.32  this budget item by January 15, 2000, 
238.33  2001, and 2002. 
238.34  $1,600,000 the first year is for a 
238.35  generic environmental impact statement 
238.36  on animal agriculture. 
238.37  $200,000 the first year is to perform 
238.38  program evaluations of agencies in the 
238.39  executive branch. 
238.40  The program evaluation division will 
238.41  report to the legislature by December 
238.42  1, 2000, ways to reduce state 
238.43  government expenditures by five to ten 
238.44  percent. 
239.1   $100,000 the first year is to provide 
239.2   administrative support to 
239.3   community-based planning efforts. 
239.4   $150,000 the first year is for a grant 
239.5   of $50,000 to the southwest regional 
239.6   development commission for the 
239.7   continuation of the pilot program and 
239.8   two additional grants of $50,000 each 
239.9   to regional development commissions or, 
239.10  in regions not served by regional 
239.11  development commissions, to regional 
239.12  organizations selected by the director 
239.13  of strategic and long-range planning, 
239.14  to support planning work on behalf of 
239.15  local units of government.  The 
239.16  planning work shall include, but need 
239.17  not be limited to:  
239.18  (1) development of local zoning 
239.19  ordinances; 
239.20  (2) land use plans; 
239.21  (3) community or economic development 
239.22  plans; 
239.23  (4) transportation and transit plans; 
239.24  (5) solid waste management plans; 
239.25  (6) wastewater management plans; 
239.26  (7) workforce development plans; 
239.27  (8) housing development plans and/or 
239.28  market analysis; 
239.29  (9) rural health service plans; 
239.30  (10) natural resources management 
239.31  plans; or 
239.32  (11) development of geographical 
239.33  information systems database to serve a 
239.34  region's needs, including hardware and 
239.35  software purchases and related labor 
239.36  costs. 
239.37  $200,000 the first year is to prepare 
239.38  the generic environmental impact 
239.39  statement on urban development required 
239.40  by section 108.  Any unencumbered 
239.41  balance remaining in the first year 
239.42  does not cancel and is available for 
239.43  the second year of the biennium. 
239.44  $24,000 the first year is for the 
239.45  southwest Minnesota wind monitoring 
239.46  project. 
239.47  $100,000 the first year is for a grant 
239.48  to the city of Mankato to complete the 
239.49  Mankato area growth management and 
239.50  planning study, phase 2.  The 
239.51  appropriation is available until June 
239.52  30, 2002.  The appropriation must be 
239.53  matched by an in-kind donation of 
239.54  $100,000 in administrative, technical, 
239.55  and higher educational internship 
239.56  support and supervision.  The value of 
240.1   the in-kind donations must be 
240.2   determined by the commissioner of 
240.3   finance. 
240.4   The city shall serve as fiscal agent to 
240.5   complete the study under the 1997 
240.6   regional planning joint powers 
240.7   agreement among the cities of Mankato, 
240.8   North Mankato, and Eagle Lake; the 
240.9   counties of Nicollet and Blue Earth; 
240.10  and the towns of Mankato, South Bend, 
240.11  Lime, Decoria, and Belgrade, without 
240.12  limitation on the rights of the parties 
240.13  to that agreement to add or remove 
240.14  members.  The study is intended as an 
240.15  alternative to community-based 
240.16  planning.  The study is intended to 
240.17  develop information and analysis to 
240.18  provide guidance on such issues as: 
240.19  (1) the development of joint planning 
240.20  agreements to implement a unified 
240.21  growth management strategy; 
240.22  (2) joint service ventures, such as 
240.23  planning or zoning administration in 
240.24  urban fringe areas; 
240.25  (3) orderly growth and annexation 
240.26  agreements between cities and 
240.27  townships; 
240.28  (4) feedlot regulations in urban fringe 
240.29  areas and future growth corridors; 
240.30  (5) service strategies for unsewered 
240.31  subdivisions; 
240.32  (6) other joint ventures for city, 
240.33  county, and township service delivery 
240.34  in fringe areas; 
240.35  (7) feasibility of a rural township 
240.36  taxing district; and 
240.37  (8) alternatives to the current 
240.38  community-based planning legislation 
240.39  that would add flexibility and improve 
240.40  the planning process. 
240.41  The city of Mankato shall report the 
240.42  results of the study to the legislature 
240.43  by January 15, 2002. 
240.44     Sec. 20.  Laws 1999, chapter 250, article 1, section 12, 
240.45  subdivision 8, is amended to read: 
240.46  Subd. 8.  Public Broadcasting 
240.47       3,443,000      3,330,000
240.48  $1,450,000 the first year and 
240.49  $1,450,000 the second year are for 
240.50  matching grants for public television.  
240.51  $600,000 the first year and $600,000 
240.52  the second year are for public 
240.53  television equipment needs.  Equipment 
240.54  grant allocations shall be made after 
240.55  considering the recommendations of the 
241.1   Minnesota public television association.
241.2   $441,000 the first year and $441,000 
241.3   the second year are for grants and for 
241.4   contracts with the senate and house of 
241.5   representatives for public information 
241.6   television, Internet, intranet, and 
241.7   other transmission of legislative 
241.8   activities.  At least one-half must go 
241.9   for programming to be broadcast in 
241.10  transmitted to rural Minnesota. 
241.11  $25,000 the first year and $25,000 the 
241.12  second year are for grants to the Twin 
241.13  Cities regional cable channel. 
241.14  $320,000 the first year and $320,000 
241.15  the second year are for community 
241.16  service grants to public educational 
241.17  radio stations, which must be allocated 
241.18  after considering the recommendations 
241.19  of the Association of Minnesota Public 
241.20  Educational Radio Stations under 
241.21  Minnesota Statutes, section 129D.14.  
241.22  Of this appropriation, $30,000 the 
241.23  first year and $30,000 the second year 
241.24  are for station WTIP-FM in Grand 
241.25  Marais, which need not meet the 
241.26  requirements of Minnesota Statutes, 
241.27  section 129D.14, until July 1, 2002.  
241.28  $494,000 the first year and $494,000 
241.29  the second year are for equipment 
241.30  grants to public radio stations.  These 
241.31  grants must be allocated after 
241.32  considering the recommendations of the 
241.33  Association of Minnesota Public 
241.34  Educational Radio Stations and 
241.35  Minnesota Public Radio, Inc. 
241.36  If an appropriation for either year for 
241.37  grants to public television or radio 
241.38  stations is not sufficient, the 
241.39  appropriation for the other year is 
241.40  available for it. 
241.41     Sec. 21.  Laws 1999, chapter 250, article 1, section 14, 
241.42  subdivision 3, is amended to read: 
241.43  Subd. 3.  Information and 
241.44  Management Services 
241.45      16,643,000      9,932,000
241.46  $100,000 the first year is for a grant 
241.47  to the city of Mankato to complete the 
241.48  Mankato area growth management and 
241.49  planning study, phase 2.  The 
241.50  appropriation is available until June 
241.51  30, 2002.  The appropriation must be 
241.52  matched by an in-kind donation of 
241.53  $100,000 in administrative, technical, 
241.54  and higher educational internship 
241.55  support and supervision.  The value of 
241.56  the in-kind donations must be 
241.57  determined by the commissioner of 
241.58  finance. 
241.59  The city shall serve as fiscal agent to 
241.60  complete the study under the 1997 
242.1   regional planning joint powers 
242.2   agreement among the cities of Mankato, 
242.3   North Mankato, and Eagle Lake; the 
242.4   counties of Nicollet and Blue Earth; 
242.5   and the towns of Mankato, South Bend, 
242.6   Lime, Decoria, and Belgrade, without 
242.7   limitation on the rights of the parties 
242.8   to that agreement to add or remove 
242.9   members.  The study is intended as an 
242.10  alternative to community-based 
242.11  planning.  The study is intended to 
242.12  develop information and analysis to 
242.13  provide guidance on such issues as: 
242.14  (1) the development of joint planning 
242.15  agreements to implement a unified 
242.16  growth management strategy; 
242.17  (2) joint service ventures, such as 
242.18  planning or zoning administration in 
242.19  urban fringe areas; 
242.20  (3) orderly growth and annexation 
242.21  agreements between cities and 
242.22  townships; 
242.23  (4) feedlot regulations in urban fringe 
242.24  areas and future growth corridors; 
242.25  (5) service strategies for unsewered 
242.26  subdivisions; 
242.27  (6) other joint ventures for city, 
242.28  county, and township service delivery 
242.29  in fringe areas; 
242.30  (7) feasibility of a rural township 
242.31  taxing district; and 
242.32  (8) alternatives to the current 
242.33  community-based planning legislation 
242.34  that would add flexibility and improve 
242.35  the planning process. 
242.36  The city of Mankato shall report the 
242.37  results of the study to the legislature 
242.38  by January 15, 2002. 
242.39  $6,839,000 the first year is a one-time 
242.40  appropriation to upgrade the human 
242.41  resources and payroll system and is 
242.42  available until June 30, 2003.  The 
242.43  commissioner shall report on the 
242.44  progress of this project to the chairs 
242.45  of the legislative committees 
242.46  responsible for this budget item by 
242.47  January 15, 2000, 2001, and 2002. 
242.48  The commissioner of finance shall work 
242.49  with the commissioners of employee 
242.50  relations and administration and shall 
242.51  develop as part of the human resource 
242.52  and payroll systems upgrade, and submit 
242.53  to the chairs of the senate 
242.54  governmental operations budget division 
242.55  and the house state government finance 
242.56  committee by January 15, 2000, a 
242.57  long-range plan for the statewide 
242.58  business systems:  human resources, 
242.59  payroll, accounting, and procurement.  
242.60  The plan must detail each system's 
243.1   original development costs, its 
243.2   expected life cycle, the estimated cost 
243.3   of upgrading software to newer versions 
243.4   during its life cycle, its operating 
243.5   costs to date, and the factors that are 
243.6   expected to drive future operating 
243.7   costs within the departments of 
243.8   finance, administration, and employee 
243.9   relations.  The plan must also include 
243.10  an evaluation of and recommendations on 
243.11  whether, for the statewide business 
243.12  systems, the state should use software 
243.13  that is developed and maintained in 
243.14  house; proprietary software, either 
243.15  modified or unmodified; a private 
243.16  vendor; or a particular combination of 
243.17  these options. 
243.18  The commissioner of finance, in 
243.19  consultation with senate and house 
243.20  fiscal staff and the commissioner of 
243.21  administration, shall develop 
243.22  recommendations for inclusion in the 
243.23  governor's fiscal year 2002-2003 budget 
243.24  document on the presentation of 
243.25  internal service funds.  The 
243.26  commissioner of finance shall submit 
243.27  the recommendations to the chairs of 
243.28  the senate governmental operations 
243.29  budget division and the house state 
243.30  government finance committee by January 
243.31  15, 2000. 
243.32  The department shall prepare a separate 
243.33  budget book for the biennium beginning 
243.34  July 1, 2001, containing all of the 
243.35  administration's technology 
243.36  initiatives.  The book must also 
243.37  include a complete inventory of 
243.38  state-owned and leased technology, 
243.39  along with a projected replacement 
243.40  schedule.  The inventory must include 
243.41  information on how the technology fits 
243.42  into the state's master plan. 
243.43     Sec. 22.  Laws 1999, chapter 250, article 1, section 18, is 
243.44  amended to read: 
243.45  Sec. 18.  VETERANS AFFAIRS             5,885,000      4,369,000
243.46  $1,544,000 the first year and 
243.47  $1,544,000 the second year are for 
243.48  emergency financial and medical needs 
243.49  of veterans.  If the appropriation for 
243.50  either year is insufficient, the 
243.51  appropriation for the other year is 
243.52  available for it.  
243.53  $12,000 the first year and $13,000 the 
243.54  second year are one-time funding to 
243.55  provide grants to local veterans' 
243.56  organizations that provide 
243.57  transportation services for veterans to 
243.58  veterans administration medical 
243.59  facilities. 
243.60  The commissioner of veterans affairs, 
243.61  in cooperation with the board of 
243.62  directors of the Minnesota veterans 
243.63  homes and the United States Veterans 
244.1   Administration, shall study the 
244.2   feasibility and desirability of 
244.3   supplementing the missions of the 
244.4   veterans homes and the Veterans 
244.5   Administration hospitals in Minnesota 
244.6   by entering into agreements with health 
244.7   care providers throughout the state to 
244.8   provide free or reduced-cost 
244.9   comprehensive health care to veterans 
244.10  close to their places of residence as a 
244.11  supplement to private health 
244.12  insurance.  The commissioner shall 
244.13  report the results of the study and any 
244.14  recommendations to the legislature by 
244.15  January 15, 2000. 
244.16  With the approval of the commissioner 
244.17  of finance, the commissioner of 
244.18  veterans affairs may transfer the 
244.19  unencumbered balance from the veterans 
244.20  relief program to other department 
244.21  programs during the fiscal year.  
244.22  Before the transfer, the commissioner 
244.23  of veterans affairs shall explain why 
244.24  the unencumbered balance exists.  The 
244.25  amounts transferred must be identified 
244.26  to the chairs of the senate 
244.27  governmental operations budget 
244.28  committee and the house state 
244.29  government finance committee. 
244.30  $275,000 the first year and $275,000 
244.31  the second year are for a grant to the 
244.32  Vinland National Center. 
244.33  $1,485,000 the first year is to make 
244.34  bonus payments authorized under 
244.35  Minnesota Statutes, section 197.79.  
244.36  The appropriation may not be used for 
244.37  administrative purposes.  The 
244.38  appropriation does not expire until the 
244.39  commissioner acts on all applications 
244.40  submitted under Minnesota Statutes, 
244.41  section 197.79. 
244.42  $105,000 the first year is to 
244.43  administer the bonus program 
244.44  established under Minnesota Statutes, 
244.45  section 197.79.  The appropriation does 
244.46  not expire until the commissioner acts 
244.47  on all the applications submitted under 
244.48  Minnesota Statutes, section 197.79. 
244.49  $233,000 the first year and $235,000 
244.50  the second year are for grants to 
244.51  county veterans offices for training of 
244.52  county veterans service officers to 
244.53  enhance their effectiveness. 
244.54     Sec. 23.  [CLARIFICATION; EFFECT ON REPEAL.] 
244.55     Laws 1999, chapter 250, article 3, does not repeal rules or 
244.56  fees in effect on the day before the effective date of Laws 
244.57  1999, chapter 250, article 3. 
244.58     Sec. 24.  [BASE ADJUSTMENTS PROHIBITED.] 
244.59     If a capital project authorized by the 2000 legislature 
245.1   causes a change in operating costs for a state agency, the 
245.2   commissioner of finance shall not treat that change as a base 
245.3   adjustment in the agency's budget for fiscal years 2002 and 2003.
245.4      Sec. 25.  [REPEALER.] 
245.5      Laws 1999, chapter 250, article 1, section 15, subdivision 
245.6   4, is repealed. 
245.7      Sec. 26.  [EFFECTIVE DATE.] 
245.8      Except as otherwise provided in this article, this article 
245.9   is effective the day following final enactment.  Section 13 is 
245.10  effective June 30, 2001.  Section 17 is effective the day 
245.11  following final enactment and applies to information systems 
245.12  development projects that have not progressed beyond initial 
245.13  planning and assessment before its effective date. 
245.14                             ARTICLE 13 
245.15             MINNESOTA COMPREHENSIVE HEALTH ASSOCIATION 
245.16     Section 1.  [MINNESOTA WORKERS' COMPENSATION ASSIGNED RISK 
245.17  PLAN SURPLUS UTILIZATION.] 
245.18     On January 15, 2001, the commissioner of finance shall 
245.19  transfer $15,000,000 in assets of the assigned risk plan to the 
245.20  general fund and $15,000,000 is appropriated from the general 
245.21  fund to the commissioner of commerce to be paid to the Minnesota 
245.22  comprehensive health association for the exclusive purpose of 
245.23  reducing the association's operating deficit assessment for 
245.24  calendar year 2001.