1.1                          A bill for an act 
  1.2             relating to juveniles; providing reimbursement to 
  1.3             county social service agencies for the costs of 
  1.4             out-of-home placement; appropriating money; amending 
  1.5             Minnesota Statutes 2000, sections 256.01, subdivision 
  1.6             2; 256.82, subdivision 2; 260.765, by adding a 
  1.7             subdivision; 260.771, subdivision 4; 260B.331, 
  1.8             subdivisions 1, 2; 260C.331, subdivisions 1, 2. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2000, section 256.01, 
  1.11  subdivision 2, is amended to read: 
  1.12     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
  1.13  section 241.021, subdivision 2, the commissioner of human 
  1.14  services shall: 
  1.15     (1) Administer and supervise all forms of public assistance 
  1.16  provided for by state law and other welfare activities or 
  1.17  services as are vested in the commissioner.  Administration and 
  1.18  supervision of human services activities or services includes, 
  1.19  but is not limited to, assuring timely and accurate distribution 
  1.20  of benefits, completeness of service, and quality program 
  1.21  management.  In addition to administering and supervising human 
  1.22  services activities vested by law in the department, the 
  1.23  commissioner shall have the authority to: 
  1.24     (a) require county agency participation in training and 
  1.25  technical assistance programs to promote compliance with 
  1.26  statutes, rules, federal laws, regulations, and policies 
  1.27  governing human services; 
  2.1      (b) monitor, on an ongoing basis, the performance of county 
  2.2   agencies in the operation and administration of human services, 
  2.3   enforce compliance with statutes, rules, federal laws, 
  2.4   regulations, and policies governing welfare services and promote 
  2.5   excellence of administration and program operation; 
  2.6      (c) develop a quality control program or other monitoring 
  2.7   program to review county performance and accuracy of benefit 
  2.8   determinations; 
  2.9      (d) require county agencies to make an adjustment to the 
  2.10  public assistance benefits issued to any individual consistent 
  2.11  with federal law and regulation and state law and rule and to 
  2.12  issue or recover benefits as appropriate; 
  2.13     (e) delay or deny payment of all or part of the state and 
  2.14  federal share of benefits and administrative reimbursement 
  2.15  according to the procedures set forth in section 256.017; 
  2.16     (f) make contracts with and grants to public and private 
  2.17  agencies and organizations, both profit and nonprofit, and 
  2.18  individuals, using appropriated funds; and 
  2.19     (g) enter into contractual agreements with federally 
  2.20  recognized Indian tribes with a reservation in Minnesota to the 
  2.21  extent necessary for the tribe to operate a federally approved 
  2.22  family assistance program or any other program under the 
  2.23  supervision of the commissioner.  The commissioner may also 
  2.24  enter into contractual agreements with federally recognized 
  2.25  Indian tribes with a reservation in Minnesota to the extent 
  2.26  necessary for the tribe to operate placement programs for Indian 
  2.27  children, so that the tribes may receive direct federal and 
  2.28  state reimbursement, where appropriate, for the placement of 
  2.29  individual Indian children.  The commissioner shall consult with 
  2.30  the affected county or counties in the contractual agreement 
  2.31  negotiations, if the county or counties wish to be included, in 
  2.32  order to avoid the duplication of county and tribal assistance 
  2.33  program services.  The commissioner may establish necessary 
  2.34  accounts for the purposes of receiving and disbursing funds as 
  2.35  necessary for the operation of the programs. 
  2.36     (2) Inform county agencies, on a timely basis, of changes 
  3.1   in statute, rule, federal law, regulation, and policy necessary 
  3.2   to county agency administration of the programs. 
  3.3      (3) Administer and supervise all child welfare activities; 
  3.4   promote the enforcement of laws protecting handicapped, 
  3.5   dependent, neglected and delinquent children, and children born 
  3.6   to mothers who were not married to the children's fathers at the 
  3.7   times of the conception nor at the births of the children; 
  3.8   license and supervise child-caring and child-placing agencies 
  3.9   and institutions; supervise the care of children in boarding and 
  3.10  foster homes or in private institutions; and generally perform 
  3.11  all functions relating to the field of child welfare now vested 
  3.12  in the state board of control. 
  3.13     (4) Administer and supervise all noninstitutional service 
  3.14  to handicapped persons, including those who are visually 
  3.15  impaired, hearing impaired, or physically impaired or otherwise 
  3.16  handicapped.  The commissioner may provide and contract for the 
  3.17  care and treatment of qualified indigent children in facilities 
  3.18  other than those located and available at state hospitals when 
  3.19  it is not feasible to provide the service in state hospitals. 
  3.20     (5) Assist and actively cooperate with other departments, 
  3.21  agencies and institutions, local, state, and federal, by 
  3.22  performing services in conformity with the purposes of Laws 
  3.23  1939, chapter 431. 
  3.24     (6) Act as the agent of and cooperate with the federal 
  3.25  government in matters of mutual concern relative to and in 
  3.26  conformity with the provisions of Laws 1939, chapter 431, 
  3.27  including the administration of any federal funds granted to the 
  3.28  state to aid in the performance of any functions of the 
  3.29  commissioner as specified in Laws 1939, chapter 431, and 
  3.30  including the promulgation of rules making uniformly available 
  3.31  medical care benefits to all recipients of public assistance, at 
  3.32  such times as the federal government increases its participation 
  3.33  in assistance expenditures for medical care to recipients of 
  3.34  public assistance, the cost thereof to be borne in the same 
  3.35  proportion as are grants of aid to said recipients. 
  3.36     (7) Establish and maintain any administrative units 
  4.1   reasonably necessary for the performance of administrative 
  4.2   functions common to all divisions of the department. 
  4.3      (8) Act as designated guardian of both the estate and the 
  4.4   person of all the wards of the state of Minnesota, whether by 
  4.5   operation of law or by an order of court, without any further 
  4.6   act or proceeding whatever, except as to persons committed as 
  4.7   mentally retarded.  For children under the guardianship of the 
  4.8   commissioner whose interests would be best served by adoptive 
  4.9   placement, the commissioner may contract with a licensed 
  4.10  child-placing agency to provide adoption services.  A contract 
  4.11  with a licensed child-placing agency must be designed to 
  4.12  supplement existing county efforts and may not replace existing 
  4.13  county programs, unless the replacement is agreed to by the 
  4.14  county board and the appropriate exclusive bargaining 
  4.15  representative or the commissioner has evidence that child 
  4.16  placements of the county continue to be substantially below that 
  4.17  of other counties.  Funds encumbered and obligated under an 
  4.18  agreement for a specific child shall remain available until the 
  4.19  terms of the agreement are fulfilled or the agreement is 
  4.20  terminated. 
  4.21     (9) Act as coordinating referral and informational center 
  4.22  on requests for service for newly arrived immigrants coming to 
  4.23  Minnesota. 
  4.24     (10) The specific enumeration of powers and duties as 
  4.25  hereinabove set forth shall in no way be construed to be a 
  4.26  limitation upon the general transfer of powers herein contained. 
  4.27     (11) Establish county, regional, or statewide schedules of 
  4.28  maximum fees and charges which may be paid by county agencies 
  4.29  for medical, dental, surgical, hospital, nursing and nursing 
  4.30  home care and medicine and medical supplies under all programs 
  4.31  of medical care provided by the state and for congregate living 
  4.32  care under the income maintenance programs. 
  4.33     (12) Have the authority to conduct and administer 
  4.34  experimental projects to test methods and procedures of 
  4.35  administering assistance and services to recipients or potential 
  4.36  recipients of public welfare.  To carry out such experimental 
  5.1   projects, it is further provided that the commissioner of human 
  5.2   services is authorized to waive the enforcement of existing 
  5.3   specific statutory program requirements, rules, and standards in 
  5.4   one or more counties.  The order establishing the waiver shall 
  5.5   provide alternative methods and procedures of administration, 
  5.6   shall not be in conflict with the basic purposes, coverage, or 
  5.7   benefits provided by law, and in no event shall the duration of 
  5.8   a project exceed four years.  It is further provided that no 
  5.9   order establishing an experimental project as authorized by the 
  5.10  provisions of this section shall become effective until the 
  5.11  following conditions have been met: 
  5.12     (a) The secretary of health and human services of the 
  5.13  United States has agreed, for the same project, to waive state 
  5.14  plan requirements relative to statewide uniformity. 
  5.15     (b) A comprehensive plan, including estimated project 
  5.16  costs, shall be approved by the legislative advisory commission 
  5.17  and filed with the commissioner of administration.  
  5.18     (13) According to federal requirements, establish 
  5.19  procedures to be followed by local welfare boards in creating 
  5.20  citizen advisory committees, including procedures for selection 
  5.21  of committee members. 
  5.22     (14) Allocate federal fiscal disallowances or sanctions 
  5.23  which are based on quality control error rates for the aid to 
  5.24  families with dependent children program formerly codified in 
  5.25  sections 256.72 to 256.87, medical assistance, or food stamp 
  5.26  program in the following manner:  
  5.27     (a) One-half of the total amount of the disallowance shall 
  5.28  be borne by the county boards responsible for administering the 
  5.29  programs.  For the medical assistance and the AFDC program 
  5.30  formerly codified in sections 256.72 to 256.87, disallowances 
  5.31  shall be shared by each county board in the same proportion as 
  5.32  that county's expenditures for the sanctioned program are to the 
  5.33  total of all counties' expenditures for the AFDC program 
  5.34  formerly codified in sections 256.72 to 256.87, and medical 
  5.35  assistance programs.  For the food stamp program, sanctions 
  5.36  shall be shared by each county board, with 50 percent of the 
  6.1   sanction being distributed to each county in the same proportion 
  6.2   as that county's administrative costs for food stamps are to the 
  6.3   total of all food stamp administrative costs for all counties, 
  6.4   and 50 percent of the sanctions being distributed to each county 
  6.5   in the same proportion as that county's value of food stamp 
  6.6   benefits issued are to the total of all benefits issued for all 
  6.7   counties.  Each county shall pay its share of the disallowance 
  6.8   to the state of Minnesota.  When a county fails to pay the 
  6.9   amount due hereunder, the commissioner may deduct the amount 
  6.10  from reimbursement otherwise due the county, or the attorney 
  6.11  general, upon the request of the commissioner, may institute 
  6.12  civil action to recover the amount due. 
  6.13     (b) Notwithstanding the provisions of paragraph (a), if the 
  6.14  disallowance results from knowing noncompliance by one or more 
  6.15  counties with a specific program instruction, and that knowing 
  6.16  noncompliance is a matter of official county board record, the 
  6.17  commissioner may require payment or recover from the county or 
  6.18  counties, in the manner prescribed in paragraph (a), an amount 
  6.19  equal to the portion of the total disallowance which resulted 
  6.20  from the noncompliance, and may distribute the balance of the 
  6.21  disallowance according to paragraph (a).  
  6.22     (15) Develop and implement special projects that maximize 
  6.23  reimbursements and result in the recovery of money to the 
  6.24  state.  For the purpose of recovering state money, the 
  6.25  commissioner may enter into contracts with third parties.  Any 
  6.26  recoveries that result from projects or contracts entered into 
  6.27  under this paragraph shall be deposited in the state treasury 
  6.28  and credited to a special account until the balance in the 
  6.29  account reaches $1,000,000.  When the balance in the account 
  6.30  exceeds $1,000,000, the excess shall be transferred and credited 
  6.31  to the general fund.  All money in the account is appropriated 
  6.32  to the commissioner for the purposes of this paragraph. 
  6.33     (16) Have the authority to make direct payments to 
  6.34  facilities providing shelter to women and their children 
  6.35  according to section 256D.05, subdivision 3.  Upon the written 
  6.36  request of a shelter facility that has been denied payments 
  7.1   under section 256D.05, subdivision 3, the commissioner shall 
  7.2   review all relevant evidence and make a determination within 30 
  7.3   days of the request for review regarding issuance of direct 
  7.4   payments to the shelter facility.  Failure to act within 30 days 
  7.5   shall be considered a determination not to issue direct payments.
  7.6      (17) Have the authority to establish and enforce the 
  7.7   following county reporting requirements:  
  7.8      (a) The commissioner shall establish fiscal and statistical 
  7.9   reporting requirements necessary to account for the expenditure 
  7.10  of funds allocated to counties for human services programs.  
  7.11  When establishing financial and statistical reporting 
  7.12  requirements, the commissioner shall evaluate all reports, in 
  7.13  consultation with the counties, to determine if the reports can 
  7.14  be simplified or the number of reports can be reduced. 
  7.15     (b) The county board shall submit monthly or quarterly 
  7.16  reports to the department as required by the commissioner.  
  7.17  Monthly reports are due no later than 15 working days after the 
  7.18  end of the month.  Quarterly reports are due no later than 30 
  7.19  calendar days after the end of the quarter, unless the 
  7.20  commissioner determines that the deadline must be shortened to 
  7.21  20 calendar days to avoid jeopardizing compliance with federal 
  7.22  deadlines or risking a loss of federal funding.  Only reports 
  7.23  that are complete, legible, and in the required format shall be 
  7.24  accepted by the commissioner.  
  7.25     (c) If the required reports are not received by the 
  7.26  deadlines established in clause (b), the commissioner may delay 
  7.27  payments and withhold funds from the county board until the next 
  7.28  reporting period.  When the report is needed to account for the 
  7.29  use of federal funds and the late report results in a reduction 
  7.30  in federal funding, the commissioner shall withhold from the 
  7.31  county boards with late reports an amount equal to the reduction 
  7.32  in federal funding until full federal funding is received.  
  7.33     (d) A county board that submits reports that are late, 
  7.34  illegible, incomplete, or not in the required format for two out 
  7.35  of three consecutive reporting periods is considered 
  7.36  noncompliant.  When a county board is found to be noncompliant, 
  8.1   the commissioner shall notify the county board of the reason the 
  8.2   county board is considered noncompliant and request that the 
  8.3   county board develop a corrective action plan stating how the 
  8.4   county board plans to correct the problem.  The corrective 
  8.5   action plan must be submitted to the commissioner within 45 days 
  8.6   after the date the county board received notice of noncompliance.
  8.7      (e) The final deadline for fiscal reports or amendments to 
  8.8   fiscal reports is one year after the date the report was 
  8.9   originally due.  If the commissioner does not receive a report 
  8.10  by the final deadline, the county board forfeits the funding 
  8.11  associated with the report for that reporting period and the 
  8.12  county board must repay any funds associated with the report 
  8.13  received for that reporting period. 
  8.14     (f) The commissioner may not delay payments, withhold 
  8.15  funds, or require repayment under paragraph (c) or (e) if the 
  8.16  county demonstrates that the commissioner failed to provide 
  8.17  appropriate forms, guidelines, and technical assistance to 
  8.18  enable the county to comply with the requirements.  If the 
  8.19  county board disagrees with an action taken by the commissioner 
  8.20  under paragraph (c) or (e), the county board may appeal the 
  8.21  action according to sections 14.57 to 14.69. 
  8.22     (g) Counties subject to withholding of funds under 
  8.23  paragraph (c) or forfeiture or repayment of funds under 
  8.24  paragraph (e) shall not reduce or withhold benefits or services 
  8.25  to clients to cover costs incurred due to actions taken by the 
  8.26  commissioner under paragraph (c) or (e). 
  8.27     (18) Allocate federal fiscal disallowances or sanctions for 
  8.28  audit exceptions when federal fiscal disallowances or sanctions 
  8.29  are based on a statewide random sample for the foster care 
  8.30  program under title IV-E of the Social Security Act, United 
  8.31  States Code, title 42, in direct proportion to each county's 
  8.32  title IV-E foster care maintenance claim for that period. 
  8.33     (19) Be responsible for ensuring the detection, prevention, 
  8.34  investigation, and resolution of fraudulent activities or 
  8.35  behavior by applicants, recipients, and other participants in 
  8.36  the human services programs administered by the department. 
  9.1      (20) Require county agencies to identify overpayments, 
  9.2   establish claims, and utilize all available and cost-beneficial 
  9.3   methodologies to collect and recover these overpayments in the 
  9.4   human services programs administered by the department. 
  9.5      (21) Have the authority to administer a drug rebate program 
  9.6   for drugs purchased pursuant to the prescription drug program 
  9.7   established under section 256.955 after the beneficiary's 
  9.8   satisfaction of any deductible established in the program.  The 
  9.9   commissioner shall require a rebate agreement from all 
  9.10  manufacturers of covered drugs as defined in section 256B.0625, 
  9.11  subdivision 13.  Rebate agreements for prescription drugs 
  9.12  delivered on or after July 1, 2002, must include rebates for 
  9.13  individuals covered under the prescription drug program who are 
  9.14  under 65 years of age.  For each drug, the amount of the rebate 
  9.15  shall be equal to the basic rebate as defined for purposes of 
  9.16  the federal rebate program in United States Code, title 42, 
  9.17  section 1396r-8(c)(1).  This basic rebate shall be applied to 
  9.18  single-source and multiple-source drugs.  The manufacturers must 
  9.19  provide full payment within 30 days of receipt of the state 
  9.20  invoice for the rebate within the terms and conditions used for 
  9.21  the federal rebate program established pursuant to section 1927 
  9.22  of title XIX of the Social Security Act.  The manufacturers must 
  9.23  provide the commissioner with any information necessary to 
  9.24  verify the rebate determined per drug.  The rebate program shall 
  9.25  utilize the terms and conditions used for the federal rebate 
  9.26  program established pursuant to section 1927 of title XIX of the 
  9.27  Social Security Act. 
  9.28     (22) Operate the department's communication systems account 
  9.29  established in Laws 1993, First Special Session chapter 1, 
  9.30  article 1, section 2, subdivision 2, to manage shared 
  9.31  communication costs necessary for the operation of the programs 
  9.32  the commissioner supervises.  A communications account may also 
  9.33  be established for each regional treatment center which operates 
  9.34  communications systems.  Each account must be used to manage 
  9.35  shared communication costs necessary for the operations of the 
  9.36  programs the commissioner supervises.  The commissioner may 
 10.1   distribute the costs of operating and maintaining communication 
 10.2   systems to participants in a manner that reflects actual usage. 
 10.3   Costs may include acquisition, licensing, insurance, 
 10.4   maintenance, repair, staff time and other costs as determined by 
 10.5   the commissioner.  Nonprofit organizations and state, county, 
 10.6   and local government agencies involved in the operation of 
 10.7   programs the commissioner supervises may participate in the use 
 10.8   of the department's communications technology and share in the 
 10.9   cost of operation.  The commissioner may accept on behalf of the 
 10.10  state any gift, bequest, devise or personal property of any 
 10.11  kind, or money tendered to the state for any lawful purpose 
 10.12  pertaining to the communication activities of the department.  
 10.13  Any money received for this purpose must be deposited in the 
 10.14  department's communication systems accounts.  Money collected by 
 10.15  the commissioner for the use of communication systems must be 
 10.16  deposited in the state communication systems account and is 
 10.17  appropriated to the commissioner for purposes of this section. 
 10.18     (23) Receive any federal matching money that is made 
 10.19  available through the medical assistance program for the 
 10.20  consumer satisfaction survey.  Any federal money received for 
 10.21  the survey is appropriated to the commissioner for this 
 10.22  purpose.  The commissioner may expend the federal money received 
 10.23  for the consumer satisfaction survey in either year of the 
 10.24  biennium. 
 10.25     (24) Incorporate cost reimbursement claims from First Call 
 10.26  Minnesota into the federal cost reimbursement claiming processes 
 10.27  of the department according to federal law, rule, and 
 10.28  regulations.  Any reimbursement received is appropriated to the 
 10.29  commissioner and shall be disbursed to First Call Minnesota 
 10.30  according to normal department payment schedules. 
 10.31     (25) Develop recommended standards for foster care homes 
 10.32  that address the components of specialized therapeutic services 
 10.33  to be provided by foster care homes with those services. 
 10.34     Sec. 2.  Minnesota Statutes 2000, section 256.82, 
 10.35  subdivision 2, is amended to read: 
 10.36     Subd. 2.  [FOSTER CARE MAINTENANCE PAYMENTS.] Beginning 
 11.1   January 1, 1986 2002, for the purpose of foster care maintenance 
 11.2   payments under title IV-E of the Social Security Act, United 
 11.3   States Code, title 42, sections 670 to 676, the county paying 
 11.4   the maintenance costs must be reimbursed for the costs from the 
 11.5   federal and state money available for the purpose.  Beginning 
 11.6   July 1, 1997, for the purposes of determining a child's 
 11.7   eligibility under title IV-E of the Social Security Act, the 
 11.8   placing agency shall use AFDC requirements in effect on July 16, 
 11.9   1996. 
 11.10     Sec. 3.  Minnesota Statutes 2000, section 260.765, is 
 11.11  amended by adding a subdivision to read:  
 11.12     Subd. 2a.  [FINANCIAL RESPONSIBILITY.] When an Indian child 
 11.13  is voluntarily placed in foster care by a tribal social services 
 11.14  agency, the commissioner shall be responsible for reimbursing 
 11.15  the nonfederal share of the costs of placement, within the 
 11.16  limits of appropriations made available for that purpose.  
 11.17  Beginning January 1, 2002, the local social services agency or 
 11.18  tribal social services agency shall be reimbursed on a calendar 
 11.19  year basis for the nonfederal share of the costs of placements 
 11.20  under this subdivision that are in excess of those costs in 
 11.21  calendar year 2001. 
 11.22     Sec. 4.  Minnesota Statutes 2000, section 260.771, 
 11.23  subdivision 4, is amended to read: 
 11.24     Subd. 4.  [EFFECT OF TRIBAL COURT PLACEMENT ORDERS.] To the 
 11.25  extent that any child subject to sections 260.755 to 260.835 is 
 11.26  otherwise eligible for social services, orders of a tribal court 
 11.27  concerning placement of such child shall have the same force and 
 11.28  effect as orders of a court of this state.  In any case where 
 11.29  the tribal court orders placement through a local social 
 11.30  services agency, the court shall provide to the local agency 
 11.31  notice and an opportunity to be heard regarding the 
 11.32  placement.  Within the limits of appropriations made available 
 11.33  for this purpose, the commissioner of human services shall 
 11.34  reimburse the local social services agency or tribal social 
 11.35  services agency for the nonfederal share of the costs for Indian 
 11.36  children placed according to a tribal court placement order.  
 12.1   Beginning January 1, 2002, the local social services agency or 
 12.2   tribal social services agency shall be reimbursed on a calendar 
 12.3   year basis for the nonfederal share of the costs of placements 
 12.4   under this subdivision that are in excess of those costs in 
 12.5   calendar year 2001.  Determination of county of financial 
 12.6   responsibility for the placement shall be determined by the 
 12.7   local social services agency in accordance with section 256G.02, 
 12.8   subdivision 4.  Disputes concerning the county of financial 
 12.9   responsibility shall be settled in the manner prescribed in 
 12.10  section 256G.09. 
 12.11     Sec. 5.  Minnesota Statutes 2000, section 260B.331, 
 12.12  subdivision 1, is amended to read: 
 12.13     Subdivision 1.  [CARE, EXAMINATION, OR TREATMENT.] (a)(1) 
 12.14  Whenever legal custody of a child is transferred by the court to 
 12.15  a local social services agency, or 
 12.16     (2) whenever legal custody is transferred to a person other 
 12.17  than the local social services agency, but under the supervision 
 12.18  of the local social services agency, and 
 12.19     (3) whenever a child is given physical or mental 
 12.20  examinations or treatment under order of the court, and no 
 12.21  provision is otherwise made by law for payment for the care, 
 12.22  examination, or treatment of the child, these costs are a charge 
 12.23  upon the welfare funds of the county in which proceedings are 
 12.24  held upon certification of the judge of juvenile court. 
 12.25     (b) The court shall order, and the local social services 
 12.26  agency shall require, the parents or custodian of a child, while 
 12.27  the child is under the age of 18, to use the total income and 
 12.28  resources attributable to the child for the period of care, 
 12.29  examination, or treatment, except for clothing and personal 
 12.30  needs allowance as provided in section 256B.35, to reimburse the 
 12.31  county for the cost of care, examination, or treatment.  Income 
 12.32  and resources attributable to the child include, but are not 
 12.33  limited to, social security benefits, supplemental security 
 12.34  income (SSI), veterans benefits, railroad retirement benefits 
 12.35  and child support.  When the child is over the age of 18, and 
 12.36  continues to receive care, examination, or treatment, the court 
 13.1   shall order, and the local social services agency shall require, 
 13.2   reimbursement from the child for the cost of care, examination, 
 13.3   or treatment from the income and resources attributable to the 
 13.4   child less the clothing and personal needs allowance.  
 13.5      (c) If the income and resources attributable to the child 
 13.6   are not enough to reimburse the county for the full cost of the 
 13.7   care, examination, or treatment, the court shall inquire into 
 13.8   the ability of the parents to support the child and, after 
 13.9   giving the parents a reasonable opportunity to be heard, the 
 13.10  court shall order, and the local social services agency shall 
 13.11  require, the parents to contribute to the cost of care, 
 13.12  examination, or treatment of the child.  Except in delinquency 
 13.13  cases where the victim is a member of the child's immediate 
 13.14  family, when determining the amount to be contributed by the 
 13.15  parents, the court shall use a fee schedule based upon ability 
 13.16  to pay that is established by the local social services agency 
 13.17  and approved by the commissioner of human services.  In 
 13.18  delinquency cases where the victim is a member of the child's 
 13.19  immediate family, the court shall use the fee schedule but may 
 13.20  also take into account the seriousness of the offense and any 
 13.21  expenses which the parents have incurred as a result of the 
 13.22  offense.  The income of a stepparent who has not adopted a child 
 13.23  shall be excluded in calculating the parental contribution under 
 13.24  this section. 
 13.25     (d) The court shall order the amount of reimbursement 
 13.26  attributable to the parents or custodian, or attributable to the 
 13.27  child, or attributable to both sources, withheld under chapter 
 13.28  518 from the income of the parents or the custodian of the 
 13.29  child.  A parent or custodian who fails to pay without good 
 13.30  reason may be proceeded against for contempt, or the court may 
 13.31  inform the county attorney, who shall proceed to collect the 
 13.32  unpaid sums, or both procedures may be used. 
 13.33     (e) If the court orders a physical or mental examination 
 13.34  for a child, the examination is a medically necessary service 
 13.35  for purposes of determining whether the service is covered by a 
 13.36  health insurance policy, health maintenance contract, or other 
 14.1   health coverage plan.  Court-ordered treatment shall be subject 
 14.2   to policy, contract, or plan requirements for medical 
 14.3   necessity.  Nothing in this paragraph changes or eliminates 
 14.4   benefit limits, conditions of coverage, copayments or 
 14.5   deductibles, provider restrictions, or other requirements in the 
 14.6   policy, contract, or plan that relate to coverage of other 
 14.7   medically necessary services.  
 14.8      (f) Within the limits set forth in paragraph (g), the 
 14.9   county shall be reimbursed by the commissioner of human services 
 14.10  for the nonfederal share of county expenditures made under this 
 14.11  subdivision. 
 14.12     (g) Beginning January 1, 2002, counties shall be reimbursed 
 14.13  on a calendar year basis for those annual county expenditures 
 14.14  under this subdivision that are in excess of the county 
 14.15  expenditures made under this subdivision in calendar year 2001. 
 14.16     Sec. 6.  Minnesota Statutes 2000, section 260B.331, 
 14.17  subdivision 2, is amended to read: 
 14.18     Subd. 2.  [COST OF GROUP FOSTER CARE.] Whenever a child is 
 14.19  placed in a group foster care facility as provided in section 
 14.20  260B.198, subdivision 1, clause (b) or (c), item (5), the cost 
 14.21  of providing the care shall, upon certification by the juvenile 
 14.22  court, be paid from the welfare fund of the county in which the 
 14.23  proceedings were held.  To reimburse the counties for the costs 
 14.24  of providing group foster care for delinquent children and to 
 14.25  promote the establishment of suitable group foster homes, the 
 14.26  state shall quarterly, from funds appropriated for that purpose, 
 14.27  reimburse counties 50 percent of the costs not paid by federal 
 14.28  and other available state aids and grants.  Reimbursement shall 
 14.29  be prorated if the appropriation is insufficient.  In addition, 
 14.30  beginning January 1, 2002, counties shall be fully reimbursed on 
 14.31  a calendar year basis for those annual county expenditures under 
 14.32  this subdivision that are in excess of the county expenditures 
 14.33  made under this subdivision in calendar year 2001. 
 14.34     The commissioner of corrections shall establish procedures 
 14.35  for reimbursement and certify to the commissioner of finance 
 14.36  each county entitled to receive state aid under the provisions 
 15.1   of this subdivision.  Upon receipt of a certificate the 
 15.2   commissioner of finance shall issue a state warrant to the 
 15.3   county treasurer for the amount due, together with a copy of the 
 15.4   certificate prepared by the commissioner of corrections.  
 15.5      Sec. 7.  Minnesota Statutes 2000, section 260C.331, 
 15.6   subdivision 1, is amended to read: 
 15.7      Subdivision 1.  [CARE, EXAMINATION, OR TREATMENT.] (a) 
 15.8   Except where parental rights are terminated, 
 15.9      (1) whenever legal custody of a child is transferred by the 
 15.10  court to a local social services agency, 
 15.11     (2) whenever legal custody is transferred to a person other 
 15.12  than the local social services agency, but under the supervision 
 15.13  of the local social services agency, or 
 15.14     (3) whenever a child is given physical or mental 
 15.15  examinations or treatment under order of the court, and no 
 15.16  provision is otherwise made by law for payment for the care, 
 15.17  examination, or treatment of the child, these costs are a charge 
 15.18  upon the welfare funds of the county in which proceedings are 
 15.19  held upon certification of the judge of juvenile court. 
 15.20     (b) The court shall order, and the local social services 
 15.21  agency shall require, the parents or custodian of a child, while 
 15.22  the child is under the age of 18, to use the total income and 
 15.23  resources attributable to the child for the period of care, 
 15.24  examination, or treatment, except for clothing and personal 
 15.25  needs allowance as provided in section 256B.35, to reimburse the 
 15.26  county for the cost of care, examination, or treatment.  Income 
 15.27  and resources attributable to the child include, but are not 
 15.28  limited to, social security benefits, supplemental security 
 15.29  income (SSI), veterans benefits, railroad retirement benefits 
 15.30  and child support.  When the child is over the age of 18, and 
 15.31  continues to receive care, examination, or treatment, the court 
 15.32  shall order, and the local social services agency shall require, 
 15.33  reimbursement from the child for the cost of care, examination, 
 15.34  or treatment from the income and resources attributable to the 
 15.35  child less the clothing and personal needs allowance.  
 15.36     (c) If the income and resources attributable to the child 
 16.1   are not enough to reimburse the county for the full cost of the 
 16.2   care, examination, or treatment, the court shall inquire into 
 16.3   the ability of the parents to support the child and, after 
 16.4   giving the parents a reasonable opportunity to be heard, the 
 16.5   court shall order, and the local social services agency shall 
 16.6   require, the parents to contribute to the cost of care, 
 16.7   examination, or treatment of the child.  When determining the 
 16.8   amount to be contributed by the parents, the court shall use a 
 16.9   fee schedule based upon ability to pay that is established by 
 16.10  the local social services agency and approved by the 
 16.11  commissioner of human services.  The income of a stepparent who 
 16.12  has not adopted a child shall be excluded in calculating the 
 16.13  parental contribution under this section. 
 16.14     (d) The court shall order the amount of reimbursement 
 16.15  attributable to the parents or custodian, or attributable to the 
 16.16  child, or attributable to both sources, withheld under chapter 
 16.17  518 from the income of the parents or the custodian of the 
 16.18  child.  A parent or custodian who fails to pay without good 
 16.19  reason may be proceeded against for contempt, or the court may 
 16.20  inform the county attorney, who shall proceed to collect the 
 16.21  unpaid sums, or both procedures may be used. 
 16.22     (e) If the court orders a physical or mental examination 
 16.23  for a child, the examination is a medically necessary service 
 16.24  for purposes of determining whether the service is covered by a 
 16.25  health insurance policy, health maintenance contract, or other 
 16.26  health coverage plan.  Court-ordered treatment shall be subject 
 16.27  to policy, contract, or plan requirements for medical 
 16.28  necessity.  Nothing in this paragraph changes or eliminates 
 16.29  benefit limits, conditions of coverage, copayments or 
 16.30  deductibles, provider restrictions, or other requirements in the 
 16.31  policy, contract, or plan that relate to coverage of other 
 16.32  medically necessary services.  
 16.33     (f) Within the limits set forth in paragraph (g), the 
 16.34  county shall be reimbursed by the commissioner of human services 
 16.35  for the nonfederal share of county expenditures made under this 
 16.36  subdivision. 
 17.1      (g) Beginning January 1, 2002, counties shall be reimbursed 
 17.2   on a calendar year basis for those annual county expenditures 
 17.3   under this subdivision that are in excess of the county 
 17.4   expenditures made under this subdivision in calendar year 2001. 
 17.5      Sec. 8.  Minnesota Statutes 2000, section 260C.331, 
 17.6   subdivision 2, is amended to read: 
 17.7      Subd. 2.  [COST OF GROUP FOSTER CARE.] Whenever a child is 
 17.8   placed in a group foster care facility as provided in section 
 17.9   260C.201, subdivision 1, paragraph (b), clause (2) or (3), the 
 17.10  cost of providing the care shall, upon certification by the 
 17.11  juvenile court, be paid from the welfare fund of the county in 
 17.12  which the proceedings were held.  To reimburse the counties for 
 17.13  the costs of promoting the establishment of suitable group 
 17.14  foster homes, the state shall quarterly, from funds appropriated 
 17.15  for that purpose, reimburse counties 50 percent of the costs not 
 17.16  paid by federal and other available state aids and grants.  In 
 17.17  addition, beginning January 1, 2002, counties shall be fully 
 17.18  reimbursed on a calendar year basis for those annual county 
 17.19  expenditures under this subdivision that are in excess of the 
 17.20  county expenditures made under this subdivision in calendar year 
 17.21  2001.  Reimbursement shall be prorated if the appropriation is 
 17.22  insufficient. 
 17.23     The commissioner of corrections shall establish procedures 
 17.24  for reimbursement and certify to the commissioner of finance 
 17.25  each county entitled to receive state aid under the provisions 
 17.26  of this subdivision.  Upon receipt of a certificate the 
 17.27  commissioner of finance shall issue a state warrant to the 
 17.28  county treasurer for the amount due, together with a copy of the 
 17.29  certificate prepared by the commissioner of corrections.  
 17.30     Sec. 9.  [APPROPRIATIONS.] 
 17.31     (a) $....... is appropriated from the general fund to the 
 17.32  commissioner of human services for the biennium ending June 30, 
 17.33  2003, for purposes of reimbursing counties for the costs of 
 17.34  placements under Minnesota Statutes, sections 256.82; 260.765, 
 17.35  subdivision 2a; 260.771, subdivision 4; 260B.331, subdivision 1, 
 17.36  paragraph (g); and 260C.331, subdivision 1, paragraph (g). 
 18.1      (b) $....... is appropriated to the commissioner of 
 18.2   corrections from the general fund for the biennium ending June 
 18.3   30, 2003, for the purpose of reimbursing counties for the costs 
 18.4   of placements specified in Minnesota Statutes, sections 
 18.5   260B.331, subdivision 2; and 260C.331, subdivision 2.