1.1                          A bill for an act 
  1.2             relating to human services; modifying provisions 
  1.3             relating to health department; health care; continuing 
  1.4             care and home care; consumer information and 
  1.5             assistance and community-based care; long-term care 
  1.6             reform and reimbursement; work force; regulation of 
  1.7             supplemental nursing services agencies; long-term 
  1.8             insurance; mental health and civil commitment; 
  1.9             assistance programs; licensing; appropriating money; 
  1.10            amending Minnesota Statutes 2000, sections 13.46, 
  1.11            subdivision 4; 62A.48, subdivision 4, by adding 
  1.12            subdivisions; 62S.01, by adding subdivisions; 62S.26; 
  1.13            103I.101, subdivision 6; 103I.112; 103I.208, 
  1.14            subdivisions 1, 2; 103I.235, subdivision 1; 103I.525, 
  1.15            subdivisions 2, 6, 8, 9; 103I.531, subdivisions 2, 6, 
  1.16            8, 9; 103I.535, subdivisions 2, 6, 8, 9; 103I.541, 
  1.17            subdivisions 2b, 4, 5; 103I.545; 121A.15, subdivision 
  1.18            6; 135A.14, by adding a subdivision; 144.057; 
  1.19            144.1202, subdivision 4; 144.122; 144.1222, by adding 
  1.20            a subdivision; 144.1464; 144.226, subdivision 4; 
  1.21            144.98, subdivision 3; 144A.071, subdivisions 1, 1a, 
  1.22            2, 4a; 144A.073, subdivisions 2, 4; 144A.44, 
  1.23            subdivision 1; 144A.62, subdivisions 1, 2, 3, 4; 
  1.24            145.881, subdivision 2; 145.882, subdivision 7, by 
  1.25            adding a subdivision; 145.885, subdivision 2; 145.924; 
  1.26            145.925, subdivisions 1, 1a; 145A.15, subdivision 1, 
  1.27            by adding a subdivision; 145A.16, subdivision 1, by 
  1.28            adding a subdivision; 148.212; 157.16, subdivision 3; 
  1.29            157.22; 214.104; 245.462, subdivisions 8, 18, by 
  1.30            adding a subdivision; 245.4871, subdivisions 10, 27; 
  1.31            245.4876, subdivision 1, by adding a subdivision; 
  1.32            245.4885, subdivision 1; 245.4886, subdivision 1; 
  1.33            245.99, subdivision 4; 245A.03, subdivision 2b; 
  1.34            245A.04, subdivisions 3, 3a, 3b, 3c, 3d; 245A.05; 
  1.35            245A.06; 245A.07; 245A.08; 245A.13, subdivisions 7, 8; 
  1.36            245A.14, by adding a subdivision; 245A.16, subdivision 
  1.37            1; 245B.08, subdivision 3; 246.57, by adding a 
  1.38            subdivision; 252.275, subdivision 4b; 252A.02, 
  1.39            subdivisions 12, 13, by adding a subdivision; 
  1.40            252A.111, subdivision 6; 252A.16, subdivision 1; 
  1.41            252A.19, subdivision 2; 252A.20, subdivision 1; 
  1.42            254B.02, subdivision 3; 254B.03, subdivision 1; 
  1.43            254B.04, subdivision 1; 254B.09, by adding a 
  1.44            subdivision; 256.01, subdivisions 2, 18, by adding a 
  1.45            subdivision; 256.045, subdivisions 3, 3b, 4; 256.476, 
  1.46            subdivisions 1, 2, 3, 4, 5, 8; 256.482, subdivision 8; 
  2.1             256.955, subdivision 2b; 256.9657, subdivision 2; 
  2.2             256.969, subdivisions 2b, 3a, by adding a subdivision; 
  2.3             256.973, by adding a subdivision; 256.975, by adding 
  2.4             subdivisions; 256B.04, by adding a subdivision; 
  2.5             256B.055, subdivision 3a; 256B.056, subdivisions 1a, 
  2.6             3, 4, 5; 256B.057, subdivision 9, by adding a 
  2.7             subdivision; 256B.0625, subdivisions 3b, 7, 13, 13a, 
  2.8             17, 17a, 18a, 19a, 19c, 20, 30, 34, by adding 
  2.9             subdivisions; 256B.0627, subdivisions 1, 2, 4, 5, 7, 
  2.10            8, 10, 11, by adding subdivisions; 256B.0635, 
  2.11            subdivisions 1, 2; 256B.0911, subdivisions 1, 3, 5, 6, 
  2.12            7, by adding subdivisions; 256B.0913, subdivisions 1, 
  2.13            2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14; 256B.0915, 
  2.14            subdivisions 1d, 3, 5; 256B.0916, subdivisions 1, 7, 
  2.15            9, by adding a subdivision; 256B.0917, subdivision 7; 
  2.16            256B.092, subdivisions 2a, 5; 256B.093, subdivision 3; 
  2.17            256B.095; 256B.0951, subdivisions 1, 3, 4, 5, 7, by 
  2.18            adding subdivisions; 256B.0952, subdivisions 1, 4; 
  2.19            256B.431, subdivision 17, by adding subdivisions; 
  2.20            256B.434, subdivisions 4, 10, by adding subdivisions; 
  2.21            256B.49, by adding subdivisions; 256B.501, by adding a 
  2.22            subdivision; 256B.69, subdivisions 4, 5, 5b, 23, by 
  2.23            adding a subdivision; 256B.75; 256B.76; 256D.03, 
  2.24            subdivisions 3, 4; 256D.053, subdivision 1; 256D.35, 
  2.25            by adding subdivisions; 256D.44, subdivision 5; 
  2.26            256I.05, subdivision 1e; 256J.09, subdivisions 1, 2, 
  2.27            3, by adding subdivisions; 256J.15, by adding a 
  2.28            subdivision; 256J.24, subdivision 10; 256J.26, 
  2.29            subdivision 1; 256J.31, subdivisions 4, 12; 256J.32, 
  2.30            subdivision 7a; 256J.42, by adding a subdivision; 
  2.31            256J.45, subdivision 1; 256J.46, subdivisions 1, 2a, 
  2.32            by adding a subdivision; 256J.50, subdivisions 1, 7; 
  2.33            256J.56; 256J.57, subdivision 2; 256J.62, subdivision 
  2.34            9; 256J.625, subdivisions 1, 2, 4; 256J.751; 256K.03, 
  2.35            subdivision 1; 256K.07; 256K.25, subdivisions 1, 3, 4, 
  2.36            5, 6; 256L.06, subdivision 3; 256L.12, subdivision 9, 
  2.37            by adding a subdivision; 256L.16; 260C.201, 
  2.38            subdivision 1; 268.0122, subdivision 2; 626.556, 
  2.39            subdivisions 3, 3c, 10b, 10i; 626.557, subdivisions 3, 
  2.40            9d; 626.5572, subdivision 17; Laws 1995, chapter 178, 
  2.41            article 2, section 36; Laws 1995, chapter 207, article 
  2.42            3, section 21, as amended; Laws 1997, chapter 203, 
  2.43            article 9, section 21, as amended; Laws 1999, chapter 
  2.44            152, sections 1, 4; Laws 1999, chapter 245, article 3, 
  2.45            section 45, as amended; Laws 1999, chapter 245, 
  2.46            article 4, section 110; proposing coding for new law 
  2.47            in Minnesota Statutes, chapters 62S; 144; 144A; 145; 
  2.48            145A; 246; 256; 256B; 256I; 256J; 299A; repealing 
  2.49            Minnesota Statutes 2000, sections 144.0721, 
  2.50            subdivision 1; 144.148, subdivision 8; 145.882, 
  2.51            subdivisions 3, 4; 145.9245; 145.927; 252A.111, 
  2.52            subdivision 3; 256.476, subdivision 7; 256B.037, 
  2.53            subdivision 5; 256B.0635, subdivision 3; 256B.0911, 
  2.54            subdivisions 2, 2a, 4, 8, 9; 256B.0912; 256B.0913, 
  2.55            subdivisions 3, 15a, 15b, 15c, 16; 256B.0915, 
  2.56            subdivisions 3a, 3b, 3c; 256B.0951, subdivision 6; 
  2.57            256B.434, subdivision 5; 256B.49, subdivisions 1, 2, 
  2.58            3, 4, 5, 6, 7, 8, 9, 10; 256E.06, subdivision 2b; 
  2.59            256J.42, subdivision 4; 256J.44; 256J.46, subdivision 
  2.60            1a; Laws 1995, chapter 178, article 2, section 48, 
  2.61            subdivision 6; Minnesota Rules, parts 9505.2390; 
  2.62            9505.2395; 9505.2396; 9505.2400; 9505.2405; 9505.2410; 
  2.63            9505.2413; 9505.2415; 9505.2420; 9505.2425; 9505.2426; 
  2.64            9505.2430; 9505.2435; 9505.2440; 9505.2445; 9505.2450; 
  2.65            9505.2455; 9505.2458; 9505.2460; 9505.2465; 9505.2470; 
  2.66            9505.2473; 9505.2475; 9505.2480; 9505.2485; 9505.2486; 
  2.67            9505.2490; 9505.2495; 9505.2496; 9505.2500; 9505.3010; 
  2.68            9505.3015; 9505.3020; 9505.3025; 9505.3030; 9505.3035; 
  2.69            9505.3040; 9505.3065; 9505.3085; 9505.3135; 9505.3500; 
  2.70            9505.3510; 9505.3520; 9505.3530; 9505.3535; 9505.3540; 
  2.71            9505.3545; 9505.3550; 9505.3560; 9505.3570; 9505.3575; 
  3.1             9505.3580; 9505.3585; 9505.3600; 9505.3610; 9505.3620; 
  3.2             9505.3622; 9505.3624; 9505.3626; 9505.3630; 9505.3635; 
  3.3             9505.3640; 9505.3645; 9505.3650; 9505.3660; 9505.3670. 
  3.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  3.5                              ARTICLE 1 
  3.6                          HEALTH DEPARTMENT 
  3.7      Section 1.  Minnesota Statutes 2000, section 103I.101, 
  3.8   subdivision 6, is amended to read: 
  3.9      Subd. 6.  [FEES FOR VARIANCES.] The commissioner shall 
  3.10  charge a nonrefundable application fee of $120 $150 to cover the 
  3.11  administrative cost of processing a request for a variance or 
  3.12  modification of rules adopted by the commissioner under this 
  3.13  chapter. 
  3.14     Sec. 2.  Minnesota Statutes 2000, section 103I.112, is 
  3.15  amended to read: 
  3.16     103I.112 [FEE EXEMPTIONS FOR STATE AND LOCAL GOVERNMENT.] 
  3.17     (a) The commissioner of health may not charge fees required 
  3.18  under this chapter to a federal agency, state agency, or a local 
  3.19  unit of government or to a subcontractor performing work for the 
  3.20  state agency or local unit of government.  
  3.21     (b) "Local unit of government" means a statutory or home 
  3.22  rule charter city, town, county, or soil and water conservation 
  3.23  district, watershed district, an organization formed for the 
  3.24  joint exercise of powers under section 471.59, a board of health 
  3.25  or community health board, or other special purpose district or 
  3.26  authority with local jurisdiction in water and related land 
  3.27  resources management. 
  3.28     Sec. 3.  Minnesota Statutes 2000, section 103I.208, 
  3.29  subdivision 1, is amended to read: 
  3.30     Subdivision 1.  [WELL NOTIFICATION FEE.] The well 
  3.31  notification fee to be paid by a property owner is:  
  3.32     (1) for a new well, $120 $150, which includes the state 
  3.33  core function fee; 
  3.34     (2) for a well sealing, $20 $30 for each well, which 
  3.35  includes the state core function fee, except that for monitoring 
  3.36  wells constructed on a single property, having depths within a 
  3.37  25 foot range, and sealed within 48 hours of start of 
  4.1   construction, a single fee of $20 $30; and 
  4.2      (3) for construction of a dewatering well, $120 $150, which 
  4.3   includes the state core function fee, for each well except a 
  4.4   dewatering project comprising five or more wells shall be 
  4.5   assessed a single fee of $600 $750 for the wells recorded on the 
  4.6   notification. 
  4.7      Sec. 4.  Minnesota Statutes 2000, section 103I.208, 
  4.8   subdivision 2, is amended to read: 
  4.9      Subd. 2.  [PERMIT FEE.] The permit fee to be paid by a 
  4.10  property owner is:  
  4.11     (1) for a well that is not in use under a maintenance 
  4.12  permit, $100 $125 annually; 
  4.13     (2) for construction of a monitoring well, $120 $150, which 
  4.14  includes the state core function fee; 
  4.15     (3) for a monitoring well that is unsealed under a 
  4.16  maintenance permit, $100 $125 annually; 
  4.17     (4) for monitoring wells used as a leak detection device at 
  4.18  a single motor fuel retail outlet, a single petroleum bulk 
  4.19  storage site excluding tank farms, or a single agricultural 
  4.20  chemical facility site, the construction permit fee 
  4.21  is $120 $150, which includes the state core function fee, per 
  4.22  site regardless of the number of wells constructed on the site, 
  4.23  and the annual fee for a maintenance permit for unsealed 
  4.24  monitoring wells is $100 $125 per site regardless of the number 
  4.25  of monitoring wells located on site; 
  4.26     (5) for a groundwater thermal exchange device, in addition 
  4.27  to the notification fee for wells, $120 $150, which includes the 
  4.28  state core function fee; 
  4.29     (6) for a vertical heat exchanger, $120 $150; 
  4.30     (7) for a dewatering well that is unsealed under a 
  4.31  maintenance permit, $100 $125 annually for each well, except a 
  4.32  dewatering project comprising more than five wells shall be 
  4.33  issued a single permit for $500 $625 annually for wells recorded 
  4.34  on the permit; and 
  4.35     (8) for excavating holes for the purpose of installing 
  4.36  elevator shafts, $120 $150 for each hole. 
  5.1      Sec. 5.  Minnesota Statutes 2000, section 103I.235, 
  5.2   subdivision 1, is amended to read: 
  5.3      Subdivision 1.  [DISCLOSURE OF WELLS TO BUYER.] (a) Before 
  5.4   signing an agreement to sell or transfer real property, the 
  5.5   seller must disclose in writing to the buyer information about 
  5.6   the status and location of all known wells on the property, by 
  5.7   delivering to the buyer either a statement by the seller that 
  5.8   the seller does not know of any wells on the property, or a 
  5.9   disclosure statement indicating the legal description and 
  5.10  county, and a map drawn from available information showing the 
  5.11  location of each well to the extent practicable.  In the 
  5.12  disclosure statement, the seller must indicate, for each well, 
  5.13  whether the well is in use, not in use, or sealed.  
  5.14     (b) At the time of closing of the sale, the disclosure 
  5.15  statement information, name and mailing address of the buyer, 
  5.16  and the quartile, section, township, and range in which each 
  5.17  well is located must be provided on a well disclosure 
  5.18  certificate signed by the seller or a person authorized to act 
  5.19  on behalf of the seller. 
  5.20     (c) A well disclosure certificate need not be provided if 
  5.21  the seller does not know of any wells on the property and the 
  5.22  deed or other instrument of conveyance contains the statement:  
  5.23  "The Seller certifies that the Seller does not know of any wells 
  5.24  on the described real property."  
  5.25     (d) If a deed is given pursuant to a contract for deed, the 
  5.26  well disclosure certificate required by this subdivision shall 
  5.27  be signed by the buyer or a person authorized to act on behalf 
  5.28  of the buyer.  If the buyer knows of no wells on the property, a 
  5.29  well disclosure certificate is not required if the following 
  5.30  statement appears on the deed followed by the signature of the 
  5.31  grantee or, if there is more than one grantee, the signature of 
  5.32  at least one of the grantees:  "The Grantee certifies that the 
  5.33  Grantee does not know of any wells on the described real 
  5.34  property."  The statement and signature of the grantee may be on 
  5.35  the front or back of the deed or on an attached sheet and an 
  5.36  acknowledgment of the statement by the grantee is not required 
  6.1   for the deed to be recordable. 
  6.2      (e) This subdivision does not apply to the sale, exchange, 
  6.3   or transfer of real property:  
  6.4      (1) that consists solely of a sale or transfer of severed 
  6.5   mineral interests; or 
  6.6      (2) that consists of an individual condominium unit as 
  6.7   described in chapters 515 and 515B. 
  6.8      (f) For an area owned in common under chapter 515 or 515B 
  6.9   the association or other responsible person must report to the 
  6.10  commissioner by July 1, 1992, the location and status of all 
  6.11  wells in the common area.  The association or other responsible 
  6.12  person must notify the commissioner within 30 days of any change 
  6.13  in the reported status of wells. 
  6.14     (g) For real property sold by the state under section 
  6.15  92.67, the lessee at the time of the sale is responsible for 
  6.16  compliance with this subdivision. 
  6.17     (h) If the seller fails to provide a required well 
  6.18  disclosure certificate, the buyer, or a person authorized to act 
  6.19  on behalf of the buyer, may sign a well disclosure certificate 
  6.20  based on the information provided on the disclosure statement 
  6.21  required by this section or based on other available information.
  6.22     (i) A county recorder or registrar of titles may not record 
  6.23  a deed or other instrument of conveyance dated after October 31, 
  6.24  1990, for which a certificate of value is required under section 
  6.25  272.115, or any deed or other instrument of conveyance dated 
  6.26  after October 31, 1990, from a governmental body exempt from the 
  6.27  payment of state deed tax, unless the deed or other instrument 
  6.28  of conveyance contains the statement made in accordance with 
  6.29  paragraph (c) or (d) or is accompanied by the well disclosure 
  6.30  certificate containing all the information required by paragraph 
  6.31  (b) or (d).  The county recorder or registrar of titles must not 
  6.32  accept a certificate unless it contains all the required 
  6.33  information.  The county recorder or registrar of titles shall 
  6.34  note on each deed or other instrument of conveyance accompanied 
  6.35  by a well disclosure certificate that the well disclosure 
  6.36  certificate was received.  The notation must include the 
  7.1   statement "No wells on property" if the disclosure certificate 
  7.2   states there are no wells on the property.  The well disclosure 
  7.3   certificate shall not be filed or recorded in the records 
  7.4   maintained by the county recorder or registrar of titles.  After 
  7.5   noting "No wells on property" on the deed or other instrument of 
  7.6   conveyance, the county recorder or registrar of titles shall 
  7.7   destroy or return to the buyer the well disclosure certificate.  
  7.8   The county recorder or registrar of titles shall collect from 
  7.9   the buyer or the person seeking to record a deed or other 
  7.10  instrument of conveyance, a fee of $20 $30 for receipt of a 
  7.11  completed well disclosure certificate.  By the tenth day of each 
  7.12  month, the county recorder or registrar of titles shall transmit 
  7.13  the well disclosure certificates to the commissioner of health.  
  7.14  By the tenth day after the end of each calendar quarter, the 
  7.15  county recorder or registrar of titles shall transmit to the 
  7.16  commissioner of health $17.50 $27.50 of the fee for each well 
  7.17  disclosure certificate received during the quarter.  The 
  7.18  commissioner shall maintain the well disclosure certificate for 
  7.19  at least six years.  The commissioner may store the certificate 
  7.20  as an electronic image.  A copy of that image shall be as valid 
  7.21  as the original. 
  7.22     (j) No new well disclosure certificate is required under 
  7.23  this subdivision if the buyer or seller, or a person authorized 
  7.24  to act on behalf of the buyer or seller, certifies on the deed 
  7.25  or other instrument of conveyance that the status and number of 
  7.26  wells on the property have not changed since the last previously 
  7.27  filed well disclosure certificate.  The following statement, if 
  7.28  followed by the signature of the person making the statement, is 
  7.29  sufficient to comply with the certification requirement of this 
  7.30  paragraph:  "I am familiar with the property described in this 
  7.31  instrument and I certify that the status and number of wells on 
  7.32  the described real property have not changed since the last 
  7.33  previously filed well disclosure certificate."  The 
  7.34  certification and signature may be on the front or back of the 
  7.35  deed or on an attached sheet and an acknowledgment of the 
  7.36  statement is not required for the deed or other instrument of 
  8.1   conveyance to be recordable. 
  8.2      (k) The commissioner in consultation with county recorders 
  8.3   shall prescribe the form for a well disclosure certificate and 
  8.4   provide well disclosure certificate forms to county recorders 
  8.5   and registrars of titles and other interested persons. 
  8.6      (l) Failure to comply with a requirement of this 
  8.7   subdivision does not impair: 
  8.8      (1) the validity of a deed or other instrument of 
  8.9   conveyance as between the parties to the deed or instrument or 
  8.10  as to any other person who otherwise would be bound by the deed 
  8.11  or instrument; or 
  8.12     (2) the record, as notice, of any deed or other instrument 
  8.13  of conveyance accepted for filing or recording contrary to the 
  8.14  provisions of this subdivision. 
  8.15     Sec. 6.  Minnesota Statutes 2000, section 103I.525, 
  8.16  subdivision 2, is amended to read: 
  8.17     Subd. 2.  [APPLICATION FEE.] The application fee for a well 
  8.18  contractor's license is $50 $75.  The commissioner may not act 
  8.19  on an application until the application fee is paid.  
  8.20     Sec. 7.  Minnesota Statutes 2000, section 103I.525, 
  8.21  subdivision 6, is amended to read: 
  8.22     Subd. 6.  [LICENSE FEE.] The fee for a well contractor's 
  8.23  license is $250, except the fee for an individual well 
  8.24  contractor's license is $50 $75. 
  8.25     Sec. 8.  Minnesota Statutes 2000, section 103I.525, 
  8.26  subdivision 8, is amended to read: 
  8.27     Subd. 8.  [RENEWAL.] (a) A licensee must file an 
  8.28  application and a renewal application fee to renew the license 
  8.29  by the date stated in the license.  
  8.30     (b) The renewal application fee shall be set by the 
  8.31  commissioner under section 16A.1285 for a well contractor's 
  8.32  license is $250.  
  8.33     (c) The renewal application must include information that 
  8.34  the applicant has met continuing education requirements 
  8.35  established by the commissioner by rule.  
  8.36     (d) At the time of the renewal, the commissioner must have 
  9.1   on file all properly completed well reports, well sealing 
  9.2   reports, reports of excavations to construct elevator shafts, 
  9.3   well permits, and well notifications for work conducted by the 
  9.4   licensee since the last license renewal. 
  9.5      Sec. 9.  Minnesota Statutes 2000, section 103I.525, 
  9.6   subdivision 9, is amended to read: 
  9.7      Subd. 9.  [INCOMPLETE OR LATE RENEWAL.] If a licensee fails 
  9.8   to submit all information required for renewal in subdivision 8 
  9.9   or submits the application and information after the required 
  9.10  renewal date: 
  9.11     (1) the licensee must include an additional a late fee set 
  9.12  by the commissioner of $75; and 
  9.13     (2) the licensee may not conduct activities authorized by 
  9.14  the well contractor's license until the renewal application, 
  9.15  renewal application fee, late fee, and all other information 
  9.16  required in subdivision 8 are submitted. 
  9.17     Sec. 10.  Minnesota Statutes 2000, section 103I.531, 
  9.18  subdivision 2, is amended to read: 
  9.19     Subd. 2.  [APPLICATION FEE.] The application fee for a 
  9.20  limited well/boring contractor's license is $50 $75.  The 
  9.21  commissioner may not act on an application until the application 
  9.22  fee is paid.  
  9.23     Sec. 11.  Minnesota Statutes 2000, section 103I.531, 
  9.24  subdivision 6, is amended to read: 
  9.25     Subd. 6.  [LICENSE FEE.] The fee for a limited well/boring 
  9.26  contractor's license is $50 $75.  
  9.27     Sec. 12.  Minnesota Statutes 2000, section 103I.531, 
  9.28  subdivision 8, is amended to read: 
  9.29     Subd. 8.  [RENEWAL.] (a) A person must file an application 
  9.30  and a renewal application fee to renew the limited well/boring 
  9.31  contractor's license by the date stated in the license.  
  9.32     (b) The renewal application fee shall be set by the 
  9.33  commissioner under section 16A.1285 for a limited well/boring 
  9.34  contractor's license is $75.  
  9.35     (c) The renewal application must include information that 
  9.36  the applicant has met continuing education requirements 
 10.1   established by the commissioner by rule.  
 10.2      (d) At the time of the renewal, the commissioner must have 
 10.3   on file all properly completed well sealing reports, well 
 10.4   permits, vertical heat exchanger permits, and well notifications 
 10.5   for work conducted by the licensee since the last license 
 10.6   renewal. 
 10.7      Sec. 13.  Minnesota Statutes 2000, section 103I.531, 
 10.8   subdivision 9, is amended to read: 
 10.9      Subd. 9.  [INCOMPLETE OR LATE RENEWAL.] If a licensee fails 
 10.10  to submit all information required for renewal in subdivision 8 
 10.11  or submits the application and information after the required 
 10.12  renewal date: 
 10.13     (1) the licensee must include an additional a late fee set 
 10.14  by the commissioner of $75; and 
 10.15     (2) the licensee may not conduct activities authorized by 
 10.16  the limited well/boring contractor's license until the renewal 
 10.17  application, renewal application fee, and late fee, and all 
 10.18  other information required in subdivision 8 are submitted. 
 10.19     Sec. 14.  Minnesota Statutes 2000, section 103I.535, 
 10.20  subdivision 2, is amended to read: 
 10.21     Subd. 2.  [APPLICATION FEE.] The application fee for an 
 10.22  elevator shaft contractor's license is $50 $75.  The 
 10.23  commissioner may not act on an application until the application 
 10.24  fee is paid. 
 10.25     Sec. 15.  Minnesota Statutes 2000, section 103I.535, 
 10.26  subdivision 6, is amended to read: 
 10.27     Subd. 6.  [LICENSE FEE.] The fee for an elevator shaft 
 10.28  contractor's license is $50 $75.  
 10.29     Sec. 16.  Minnesota Statutes 2000, section 103I.535, 
 10.30  subdivision 8, is amended to read: 
 10.31     Subd. 8.  [RENEWAL.] (a) A person must file an application 
 10.32  and a renewal application fee to renew the license by the date 
 10.33  stated in the license.  
 10.34     (b) The renewal application fee shall be set by the 
 10.35  commissioner under section 16A.1285 for an elevator shaft 
 10.36  contractor's license is $75.  
 11.1      (c) The renewal application must include information that 
 11.2   the applicant has met continuing education requirements 
 11.3   established by the commissioner by rule.  
 11.4      (d) At the time of renewal, the commissioner must have on 
 11.5   file all reports and permits for elevator shaft work conducted 
 11.6   by the licensee since the last license renewal. 
 11.7      Sec. 17.  Minnesota Statutes 2000, section 103I.535, 
 11.8   subdivision 9, is amended to read: 
 11.9      Subd. 9.  [INCOMPLETE OR LATE RENEWAL.] If a licensee fails 
 11.10  to submit all information required for renewal in subdivision 8 
 11.11  or submits the application and information after the required 
 11.12  renewal date: 
 11.13     (1) the licensee must include an additional a late fee set 
 11.14  by the commissioner of $75; and 
 11.15     (2) the licensee may not conduct activities authorized by 
 11.16  the elevator shaft contractor's license until the renewal 
 11.17  application, renewal application fee, and late fee, and all 
 11.18  other information required in subdivision 8 are submitted. 
 11.19     Sec. 18.  Minnesota Statutes 2000, section 103I.541, 
 11.20  subdivision 2b, is amended to read: 
 11.21     Subd. 2b.  [APPLICATION FEE.] The application fee for a 
 11.22  monitoring well contractor registration is $50 $75.  The 
 11.23  commissioner may not act on an application until the application 
 11.24  fee is paid.  
 11.25     Sec. 19.  Minnesota Statutes 2000, section 103I.541, 
 11.26  subdivision 4, is amended to read: 
 11.27     Subd. 4.  [RENEWAL.] (a) A person must file an application 
 11.28  and a renewal application fee to renew the registration by the 
 11.29  date stated in the registration.  
 11.30     (b) The renewal application fee shall be set by the 
 11.31  commissioner under section 16A.1285 for a monitoring well 
 11.32  contractor's registration is $75.  
 11.33     (c) The renewal application must include information that 
 11.34  the applicant has met continuing education requirements 
 11.35  established by the commissioner by rule.  
 11.36     (d) At the time of the renewal, the commissioner must have 
 12.1   on file all well reports, well sealing reports, well permits, 
 12.2   and notifications for work conducted by the registered person 
 12.3   since the last registration renewal. 
 12.4      Sec. 20.  Minnesota Statutes 2000, section 103I.541, 
 12.5   subdivision 5, is amended to read: 
 12.6      Subd. 5.  [INCOMPLETE OR LATE RENEWAL.] If a registered 
 12.7   person submits a renewal application after the required renewal 
 12.8   date: 
 12.9      (1) the registered person must include an additional a late 
 12.10  fee set by the commissioner of $75; and 
 12.11     (2) the registered person may not conduct activities 
 12.12  authorized by the monitoring well contractor's registration 
 12.13  until the renewal application, renewal application fee, late 
 12.14  fee, and all other information required in subdivision 4 are 
 12.15  submitted. 
 12.16     Sec. 21.  Minnesota Statutes 2000, section 103I.545, is 
 12.17  amended to read: 
 12.18     103I.545 [REGISTRATION OF DRILLING MACHINES REQUIRED.] 
 12.19     Subdivision 1.  [DRILLING MACHINE.] (a) A person may not 
 12.20  use a drilling machine such as a cable tool, rotary tool, hollow 
 12.21  rod tool, or auger for a drilling activity requiring a license 
 12.22  or registration under this chapter unless the drilling machine 
 12.23  is registered with the commissioner.  
 12.24     (b) A person must apply for the registration on forms 
 12.25  prescribed by the commissioner and submit a $50 $75 registration 
 12.26  fee. 
 12.27     (c) A registration is valid for one year.  
 12.28     Subd. 2.  [PUMP HOIST.] (a) A person may not use a machine 
 12.29  such as a pump hoist for an activity requiring a license or 
 12.30  registration under this chapter to repair wells or borings, seal 
 12.31  wells or borings, or install pumps unless the machine is 
 12.32  registered with the commissioner.  
 12.33     (b) A person must apply for the registration on forms 
 12.34  prescribed by the commissioner and submit a $50 $75 registration 
 12.35  fee. 
 12.36     (c) A registration is valid for one year. 
 13.1      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 13.2      Sec. 22.  Minnesota Statutes 2000, section 121A.15, 
 13.3   subdivision 6, is amended to read: 
 13.4      Subd. 6.  [SUSPENSION OF IMMUNIZATION REQUIREMENT; 
 13.5   MODIFICATION TO SCHEDULE.] (a) The commissioner of health, on 
 13.6   finding that an immunization required pursuant to this section 
 13.7   is not necessary to protect the public's health, may suspend for 
 13.8   one year the requirement that children receive that immunization.
 13.9      (b) During portions of the year in which the legislature is 
 13.10  not meeting in regular or special session, the commissioner of 
 13.11  health may modify the immunization requirements of this section. 
 13.12  A modification made under this paragraph must be part of the 
 13.13  current immunization recommendations of each of the following 
 13.14  organizations:  the United States Public Health Service's 
 13.15  Advisory Committee on Immunization Practices, the American 
 13.16  Academy of Family Physicians, and the American Academy of 
 13.17  Pediatrics.  The commissioner shall modify the immunization 
 13.18  requirements through rulemaking using the expedited process in 
 13.19  section 14.389.  A rule adopted under this paragraph shall be in 
 13.20  effect until the adjournment of the next regular legislative 
 13.21  session held after the rule is adopted.  The commissioner shall 
 13.22  report to the legislature on any rules adopted under this 
 13.23  paragraph during the previous calendar year.  Such reports are 
 13.24  due by January 15 of the year following the calendar year in 
 13.25  which the rule is adopted, except that if a rule is adopted in 
 13.26  January, a report on that rule is due by February 15 of that 
 13.27  year. 
 13.28     Sec. 23.  Minnesota Statutes 2000, section 135A.14, is 
 13.29  amended by adding a subdivision to read: 
 13.30     Subd. 7.  [MODIFICATIONS TO SCHEDULE.] During portions of 
 13.31  the year in which the legislature is not meeting in regular or 
 13.32  special session, the commissioner of health may modify the 
 13.33  immunization requirements of this section.  A modification made 
 13.34  under this subdivision must be part of the current immunization 
 13.35  recommendations of each of the following organizations:  the 
 13.36  United States Public Health Service's Advisory Committee on 
 14.1   Immunization Practices, the American Academy of Family 
 14.2   Physicians, and the American Academy of Pediatrics.  The 
 14.3   commissioner shall modify the immunization requirements through 
 14.4   rulemaking using the expedited process in section 14.389.  A 
 14.5   rule adopted under this subdivision shall be in effect until the 
 14.6   adjournment of the next regular legislative session held after 
 14.7   the rule is adopted.  The commissioner shall report to the 
 14.8   legislature on any rules adopted under this subdivision during 
 14.9   the previous calendar year.  Such reports are due by January 15 
 14.10  of the year following the calendar year in which the rule is 
 14.11  adopted, except that if a rule is adopted in January, a report 
 14.12  on that rule is due by February 15 of that year. 
 14.13     Sec. 24.  Minnesota Statutes 2000, section 144.1202, 
 14.14  subdivision 4, is amended to read: 
 14.15     Subd. 4.  [AGREEMENT; CONDITIONS OF IMPLEMENTATION.] (a) An 
 14.16  agreement entered into before August 2, 2002 2003, must remain 
 14.17  in effect until terminated under the Atomic Energy Act of 1954, 
 14.18  United States Code, title 42, section 2021, paragraph (j).  The 
 14.19  governor may not enter into an initial agreement with the 
 14.20  Nuclear Regulatory Commission after August 1, 2002 2003.  If an 
 14.21  agreement is not entered into by August 1, 2002 2003, any rules 
 14.22  adopted under this section are repealed effective August 1, 2002 
 14.23  2003. 
 14.24     (b) An agreement authorized under subdivision 1 must be 
 14.25  approved by law before it may be implemented. 
 14.26     Sec. 25.  [144.1205] [RADIOACTIVE MATERIAL; SOURCE AND 
 14.27  SPECIAL NUCLEAR MATERIAL; FEES; INSPECTION.] 
 14.28     Subdivision 1.  [APPLICATION AND LICENSE RENEWAL FEE.] When 
 14.29  a license is required for radioactive material or source or 
 14.30  special nuclear material by a rule adopted under section 
 14.31  144.1202, subdivision 2, an application fee according to 
 14.32  subdivision 4 must be paid upon initial application for a 
 14.33  license.  The licensee must renew the license 60 days before the 
 14.34  expiration date of the license by paying a license renewal fee 
 14.35  equal to the application fee under subdivision 4.  The 
 14.36  expiration date of a license is the date set by the United 
 15.1   States Nuclear Regulatory Commission before transfer of the 
 15.2   licensing program under section 144.1202 and thereafter as 
 15.3   specified by rule of the commissioner of health. 
 15.4      Subd. 2.  [ANNUAL FEE.] A licensee must pay an annual fee 
 15.5   at least 60 days before the anniversary date of the issuance of 
 15.6   the license.  The annual fee is an amount equal to 80 percent of 
 15.7   the application fee under subdivision 4, rounded to the nearest 
 15.8   whole dollar. 
 15.9      Subd. 3.  [FEE CATEGORIES; INCORPORATION OF FEDERAL 
 15.10  LICENSING CATEGORIES.] (a) Fee categories under this section are 
 15.11  equivalent to the licensing categories used by the United States 
 15.12  Nuclear Regulatory Commission under Code of Federal Regulations, 
 15.13  title 10, parts 30 to 36, 39, 40, 70, 71, and 150, except as 
 15.14  provided in paragraph (b). 
 15.15     (b) The category of "Academic, small" is the type of 
 15.16  license required for the use of radioactive materials in a 
 15.17  teaching institution.  Radioactive materials are limited to ten 
 15.18  radionuclides not to exceed a total activity amount of one curie.
 15.19     Subd. 4.  [APPLICATION FEE.] A licensee must pay an 
 15.20  application fee as follows: 
 15.21  Radioactive material,  Application    U.S. Nuclear Regulatory
 15.22  source and             fee            Commission licensing
 15.23  special material                      category as reference
 15.25  Type A broadscope      $20,000        Medical institution type A
 15.26  Type B broadscope      $15,000        Research and development
 15.27                                        type B
 15.28  Type C broadscope      $10,000        Academic type C
 15.29  Medical use            $4,000         Medical
 15.30                                        Medical institution
 15.31                                        Medical private practice
 15.32  Mobile nuclear                                                 
 15.33  medical laboratory     $4,000         Mobile medical laboratory
 15.34  Medical special use                                     
 15.35  sealed sources         $6,000         Teletherapy
 15.36                                        High dose rate remote
 16.1                                         afterloaders
 16.2                                         Stereotactic
 16.3                                         radiosurgery devices
 16.4   In vitro testing       $2,300         In vitro testing
 16.5                                         laboratories
 16.6   Measuring gauge,
 16.7   sealed sources         $2,000         Fixed gauges
 16.8                                         Portable gauges
 16.9                                         Analytical instruments
 16.10                                        Measuring systems - other
 16.11  Gas chromatographs     $1,200         Gas chromatographs
 16.12  Manufacturing and 
 16.13  distribution           $14,700        Manufacturing and 
 16.14                                        distribution - other
 16.15  Distribution only      $8,800         Distribution of
 16.16                                        radioactive material
 16.17                                        for commercial use only
 16.18  Other services         $1,500         Other services
 16.19  Nuclear medicine 
 16.20  pharmacy               $4,100         Nuclear pharmacy
 16.21  Waste disposal         $9,400         Waste disposal service
 16.22                                        prepackage
 16.23                                        Waste disposal service
 16.24                                        processing/repackage
 16.25  Waste storage only     $7,000         To receive and store
 16.26                                        radioactive material waste
 16.27  Industrial
 16.28  radiography            $8,400         Industrial radiography
 16.29                                        fixed location
 16.30                                        Industrial radiography
 16.31                                        portable/temporary sites
 16.32  Irradiator - 
 16.33  self-shielded          $4,100         Irradiators self-shielded
 16.34                                        less than 10,000 curies
 16.35  Irradiator - 
 16.36  less than 10,000 Ci    $7,500         Irradiators less than
 17.1                                         10,000 curies
 17.2   Irradiator - 
 17.3   more than 10,000 Ci    $11,500        Irradiators greater than
 17.4                                         10,000 curies
 17.5   Research and
 17.6   development,
 17.7   no distribution        $4,100         Research and development
 17.8   Radioactive material 
 17.9   possession only        $1,000         By-product possession only
 17.10  Source material        $1,000         Source material shielding
 17.11  Special nuclear 
 17.12  material, less than 
 17.13  200 grams              $1,000         Special nuclear material
 17.14                                        plutonium-neutron sources
 17.15                                        less than 200 grams
 17.16  Pacemaker
 17.17  manufacturing          $1,000         Pacemaker by-product
 17.18                                        and/or special nuclear
 17.19                                        material - medical
 17.20                                        institution
 17.21  General license
 17.22  distribution           $2,100         General license
 17.23                                        distribution
 17.24  General license 
 17.25  distribution, exempt   $1,500         General license 
 17.26                                        distribution -
 17.27                                        certain exempt items
 17.28  Academic, small        $1,000         Possession limit of ten
 17.29                                        radionuclides, not to
 17.30                                        exceed a total of one curie
 17.31                                        of activity
 17.32  Veterinary             $2,000         Veterinary use
 17.33  Well logging           $5,000         Well logging
 17.34     Subd. 5.  [PENALTY FOR LATE PAYMENT.] An annual fee or a 
 17.35  license renewal fee submitted to the commissioner after the due 
 17.36  date specified by rule must be accompanied by an additional 
 18.1   amount equal to 25 percent of the fee due. 
 18.2      Subd. 6.  [INSPECTIONS.] The commissioner of health shall 
 18.3   make periodic safety inspections of the radioactive material and 
 18.4   source and special nuclear material of a licensee.  The 
 18.5   commissioner shall prescribe the frequency of safety inspections 
 18.6   by rule. 
 18.7      Subd. 7.  [RECOVERY OF REINSPECTION COST.] If the 
 18.8   commissioner finds serious violations of public health standards 
 18.9   during an inspection under subdivision 6, the licensee must pay 
 18.10  all costs associated with subsequent reinspection of the 
 18.11  source.  The costs shall be the actual costs incurred by the 
 18.12  commissioner and include, but are not limited to, labor, 
 18.13  transportation, per diem, materials, legal fees, testing, and 
 18.14  monitoring costs. 
 18.15     Subd. 8.  [RECIPROCITY FEE.] A licensee submitting an 
 18.16  application for reciprocal recognition of a materials license 
 18.17  issued by another agreement state or the United States Nuclear 
 18.18  Regulatory Commission for a period of 180 days or less during a 
 18.19  calendar year must pay one-half of the application fee specified 
 18.20  under subdivision 4.  For a period of 181 days or more, the 
 18.21  licensee must pay the entire application fee under subdivision 4.
 18.22     Subd. 9.  [FEES FOR LICENSE AMENDMENTS.] A licensee must 
 18.23  pay a fee to amend a license as follows: 
 18.24     (1) to amend a license requiring no license review 
 18.25  including, but not limited to, facility name change or removal 
 18.26  of a previously authorized user, no fee; 
 18.27     (2) to amend a license requiring review including, but not 
 18.28  limited to, addition of isotopes, procedure changes, new 
 18.29  authorized users, or a new radiation safety officer, $200; and 
 18.30     (3) to amend a license requiring review and a site visit 
 18.31  including, but not limited to, facility move or addition of 
 18.32  processes, $400. 
 18.33     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 18.34     Sec. 26.  Minnesota Statutes 2000, section 144.122, is 
 18.35  amended to read: 
 18.36     144.122 [LICENSE, PERMIT, AND SURVEY FEES.] 
 19.1      (a) The state commissioner of health, by rule, may 
 19.2   prescribe reasonable procedures and fees for filing with the 
 19.3   commissioner as prescribed by statute and for the issuance of 
 19.4   original and renewal permits, licenses, registrations, and 
 19.5   certifications issued under authority of the commissioner.  The 
 19.6   expiration dates of the various licenses, permits, 
 19.7   registrations, and certifications as prescribed by the rules 
 19.8   shall be plainly marked thereon.  Fees may include application 
 19.9   and examination fees and a penalty fee for renewal applications 
 19.10  submitted after the expiration date of the previously issued 
 19.11  permit, license, registration, and certification.  The 
 19.12  commissioner may also prescribe, by rule, reduced fees for 
 19.13  permits, licenses, registrations, and certifications when the 
 19.14  application therefor is submitted during the last three months 
 19.15  of the permit, license, registration, or certification period.  
 19.16  Fees proposed to be prescribed in the rules shall be first 
 19.17  approved by the department of finance.  All fees proposed to be 
 19.18  prescribed in rules shall be reasonable.  The fees shall be in 
 19.19  an amount so that the total fees collected by the commissioner 
 19.20  will, where practical, approximate the cost to the commissioner 
 19.21  in administering the program.  All fees collected shall be 
 19.22  deposited in the state treasury and credited to the state 
 19.23  government special revenue fund unless otherwise specifically 
 19.24  appropriated by law for specific purposes. 
 19.25     (b) The commissioner may charge a fee for voluntary 
 19.26  certification of medical laboratories and environmental 
 19.27  laboratories, and for environmental and medical laboratory 
 19.28  services provided by the department, without complying with 
 19.29  paragraph (a) or chapter 14.  Fees charged for environment and 
 19.30  medical laboratory services provided by the department must be 
 19.31  approximately equal to the costs of providing the services.  
 19.32     (c) The commissioner may develop a schedule of fees for 
 19.33  diagnostic evaluations conducted at clinics held by the services 
 19.34  for children with handicaps program.  All receipts generated by 
 19.35  the program are annually appropriated to the commissioner for 
 19.36  use in the maternal and child health program. 
 20.1      (d) The commissioner, for fiscal years 1996 and beyond, 
 20.2   shall set license fees for hospitals and nursing homes that are 
 20.3   not boarding care homes at the following levels: 
 20.4   Joint Commission on Accreditation of Healthcare 
 20.5   Organizations (JCAHO hospitals)      $1,017
 20.6                                        $7,055
 20.7   Non-JCAHO hospitals                  $762 plus $34 per bed
 20.8                                        $4,680 plus $234 per bed
 20.9   Nursing home                         $78 plus $19 per bed
 20.10                                       $183 plus $91 per bed
 20.11     For fiscal years 1996 and beyond, The commissioner shall 
 20.12  set license fees for outpatient surgical centers, boarding care 
 20.13  homes, and supervised living facilities at the following levels: 
 20.14  Outpatient surgical centers          $517
 20.15                                       $1,512
 20.16  Boarding care homes                  $78 plus $19 per bed
 20.17                                       $183 plus $91 per bed
 20.18  Supervised living facilities         $78 plus $19 per bed
 20.19                                       $183 plus $91 per bed.
 20.20     (e) Unless prohibited by federal law, the commissioner of 
 20.21  health shall charge applicants the following fees to cover the 
 20.22  cost of any initial certification surveys required to determine 
 20.23  a provider's eligibility to participate in the Medicare or 
 20.24  Medicaid program: 
 20.25  Prospective payment surveys for          $  900
 20.26  hospitals
 20.28  Swing bed surveys for nursing homes      $1,200
 20.30  Psychiatric hospitals                    $1,400
 20.32  Rural health facilities                  $1,100
 20.34  Portable X-ray providers                 $  500
 20.36  Home health agencies                     $1,800
 20.38  Outpatient therapy agencies              $  800
 20.40  End stage renal dialysis providers       $2,100
 20.42  Independent therapists                   $  800
 20.44  Comprehensive rehabilitation             $1,200
 20.45  outpatient facilities
 20.47  Hospice providers                        $1,700
 21.2   Ambulatory surgical providers            $1,800
 21.4   Hospitals                                $4,200
 21.6   Other provider categories or             Actual surveyor costs:
 21.7   additional resurveys required            average surveyor cost x
 21.8   to complete initial certification        number of hours for the
 21.9                                            survey process.
 21.10     These fees shall be submitted at the time of the 
 21.11  application for federal certification and shall not be 
 21.12  refunded.  All fees collected after the date that the imposition 
 21.13  of fees is not prohibited by federal law shall be deposited in 
 21.14  the state treasury and credited to the state government special 
 21.15  revenue fund. 
 21.16     Sec. 27.  Minnesota Statutes 2000, section 144.226, 
 21.17  subdivision 4, is amended to read: 
 21.18     Subd. 4.  [VITAL RECORDS SURCHARGE.] In addition to any fee 
 21.19  prescribed under subdivision 1, there is a nonrefundable 
 21.20  surcharge of $3 $2 for each certified and noncertified birth or 
 21.21  death record, and for a certification that the record cannot be 
 21.22  found.  The local or state registrar shall forward this amount 
 21.23  to the state treasurer to be deposited into the state government 
 21.24  special revenue fund.  This surcharge shall not be charged under 
 21.25  those circumstances in which no fee for a birth or death record 
 21.26  is permitted under subdivision 1, paragraph (a).  This surcharge 
 21.27  requirement expires June 30, 2002. 
 21.28     Sec. 28.  [144.585] [HOSPITAL CHARITY CARE AID.] 
 21.29     Subdivision 1.  [PURPOSE.] The purpose of charity care aid 
 21.30  is to help offset excess charity care burdens at Minnesota acute 
 21.31  care, short-term hospitals. 
 21.32     Subd. 2.  [DEFINITIONS.] (a) For purposes of this section, 
 21.33  the terms in this subdivision have the meanings given to them. 
 21.34     (b) "Charity care" is the dollar amount of charity care 
 21.35  adjustments as determined under subdivision 3. 
 21.36     (c) "Cost-to-charge ratio" means a hospital's total 
 21.37  operating expenses over the sum of gross patient revenue and 
 21.38  other operating revenue, as reported to the commissioner of 
 21.39  health under rules adopted under sections 144.695 to 144.703.  
 21.40  The commissioner shall use the most recently available data to 
 22.1   calculate the cost-to-charge ratio. 
 22.2      Subd. 3.  [CHARITY CARE REPORTING.] (a) For a hospital to 
 22.3   report amounts as charity care adjustments, the hospital: 
 22.4      (1) must generate and record a charge; 
 22.5      (2) have a policy on the provision of charity care and must 
 22.6   communicate the policy to the public; 
 22.7      (3) have made a reasonable effort to identify a third party 
 22.8   payer, encourage the patient to enroll in public programs, and 
 22.9   should, to the extent possible, aid the patient in the 
 22.10  enrollment process; and 
 22.11     (4) ensure that the patient meets the charity care criteria 
 22.12  of this subdivision, which must be consistent with statewide 
 22.13  income standards set out in paragraph (c). 
 22.14     (b) In determining whether to classify care as charity 
 22.15  care, the hospital must consider the following: 
 22.16     (1) charity care may include services which the provider is 
 22.17  obligated to render independently of the ability to collect; 
 22.18     (2) charity care may include care provided to low-income 
 22.19  patients who meet the charity care income standards under 
 22.20  paragraph (c) and have partial coverage, but are unable to pay 
 22.21  the remainder of their medical bills.  This does not apply to 
 22.22  that portion of the bill which has been determined to be the 
 22.23  patient's responsibility after a partial charity care 
 22.24  classification; 
 22.25     (3) charity care may include care provided to low-income 
 22.26  patients who may qualify for a public health insurance program 
 22.27  and meet the statewide eligibility criteria for charity care, 
 22.28  but who do not complete the application process for public 
 22.29  insurance despite the facility's best efforts; 
 22.30     (4) charity care may include care to individuals whose 
 22.31  eligibility for charity care was determined through third party 
 22.32  services employed by the hospital for information gathering 
 22.33  purposes only; 
 22.34     (5) charity care may not include contractual allowances, 
 22.35  which is the difference between gross charges and payments 
 22.36  received under contractual arrangements with insurance companies 
 23.1   and payers; 
 23.2      (6) charity care may not include bad debt; 
 23.3      (7) charity care may not include what may be perceived as 
 23.4   underpayments for operating public programs; 
 23.5      (8) charity care may not include cases which are paid 
 23.6   through a charitable contribution through a third party or 
 23.7   facility-related foundation; 
 23.8      (9) charity care may not include unreimbursed costs of 
 23.9   basic or clinical research and of professional education and 
 23.10  training; 
 23.11     (10) charity care may not include professional courtesy 
 23.12  discounts; 
 23.13     (11) charity care may not include community service or 
 23.14  outreach activities; and 
 23.15     (12) charity care may not include services for patients 
 23.16  against whom collection actions where taken which result in a 
 23.17  credit report. 
 23.18     (c) The hospital must use the income standards in this 
 23.19  paragraph for determining charity care eligibility for reporting 
 23.20  purposes.  The hospital does not need to make a patient asset 
 23.21  determination in order to apply charity care income standards. 
 23.22     (1) Care to a patient with a family income at or below 150 
 23.23  percent of the Federal Poverty Guideline (FPG) may be reported 
 23.24  as full charity care or free care. 
 23.25     (2) The hospital's share of discounted charges for care to 
 23.26  a patient with family income below 275 percent of the FPG 
 23.27  qualifies for classification as charity care.  The following 
 23.28  sliding fee schedules apply: 
 23.29     income as     charges paid      corresponding
 23.30      % of FPG       by patient       charity care
 23.31      151-200%           20%               80%
 23.32      201-225%           40%               60%
 23.33      226-250%           60%               40%
 23.34      251-275%           80%               20%
 23.35     (3) Care to a patient is considered medical hardship when 
 23.36  qualified medical expenses, as defined for the purposes of 
 24.1   federal income tax deductibility, exceeds 30 percent of family 
 24.2   income.  Qualified medical expenses may be counted as charity 
 24.3   care in the amount that exceeds 30 percent of family income.  
 24.4   This clause applies even if the patient's family income exceeds 
 24.5   the charity care income standards in clauses (1) and (2). 
 24.6      Subd. 4.  [APPLICATION.] To be eligible for funds under 
 24.7   this section, hospitals must submit an application to the 
 24.8   commissioner of health by the deadline established by the 
 24.9   commissioner.  Applications must meet the criteria as 
 24.10  established by the commissioner, but must contain: 
 24.11     (1) the dollar amount of charity care in the previous year, 
 24.12  as defined in subdivision 3, paragraphs (b) and (c); 
 24.13     (2) a list with the most common diagnoses for which charity 
 24.14  care is provided; and 
 24.15     (3) descriptive aggregate statistics of the characteristics 
 24.16  of patients who receive charity care. 
 24.17     Subd. 5.  [ALLOCATION OF FUNDS.] A hospital's share of the 
 24.18  available charity care aid is equal to that hospital's share of 
 24.19  charity care relative to the total charity care provided by 
 24.20  applicants. 
 24.21     Sec. 29.  Minnesota Statutes 2000, section 144.98, 
 24.22  subdivision 3, is amended to read: 
 24.23     Subd. 3.  [FEES.] (a) An application for certification 
 24.24  under subdivision 1 must be accompanied by the biennial fee 
 24.25  specified in this subdivision.  The fees are for: 
 24.26     (1) nonrefundable base certification fee, $500 $1,200; and 
 24.27     (2) test category certification fees: 
 24.28  Test Category                                  Certification Fee
 24.29  Clean water program bacteriology                      $200 $600
 24.30  Safe drinking water program bacteriology                   $600
 24.31  Clean water program inorganic chemistry, 
 24.32    fewer than four constituents                        $100 $600
 24.33  Safe drinking water program inorganic chemistry, 
 24.34    four or more constituents                           $300 $600
 24.35  Clean water program chemistry metals, 
 24.36    fewer than four constituents                        $200 $800
 25.1   Safe drinking water program chemistry metals, 
 25.2     four or more constituents                           $500 $800
 25.3   Resource conservation and recovery program 
 25.4     chemistry metals                                         $800
 25.5   Clean water program volatile organic compounds      $600 $1,200
 25.6   Safe drinking water program 
 25.7     volatile organic compounds                             $1,200
 25.8   Resource conservation and recovery program 
 25.9     volatile organic compounds                             $1,200
 25.10  Underground storage tank program
 25.11    volatile organic compounds                             $1,200
 25.12  Clean water program other organic compounds         $600 $1,200
 25.13  Safe drinking water program other organic compounds      $1,200
 25.14  Resource conservation and recovery program
 25.15    other organic compounds                                $1,200
 25.16     (b) The total biennial certification fee is the base fee 
 25.17  plus the applicable test category fees.  The biennial 
 25.18  certification fee for a contract laboratory is 1.5 times the 
 25.19  total certification fee. 
 25.20     (c) Laboratories located outside of this state that require 
 25.21  an on-site survey will be assessed an additional $1,200 $2,500 
 25.22  fee. 
 25.23     (d) Fees must be set so that the total fees support the 
 25.24  laboratory certification program.  Direct costs of the 
 25.25  certification service include program administration, 
 25.26  inspections, the agency's general support costs, and attorney 
 25.27  general costs attributable to the fee function. 
 25.28     (e) A change fee shall be assessed if a laboratory requests 
 25.29  additional analytes or methods at any time other than when 
 25.30  applying for or renewing its certification.  The change fee is 
 25.31  equal to the test category certification fee for the analyte.  
 25.32     (f) A variance fee shall be assessed if a laboratory 
 25.33  requests and is granted a variance from a rule adopted under 
 25.34  this section.  The variance fee is $500 per variance. 
 25.35     (g) Refunds or credits shall not be made for analytes or 
 25.36  methods requested but not approved.  
 26.1      (h) Certification of a laboratory shall not be awarded 
 26.2   until all fees are paid. 
 26.3      Sec. 30.  Minnesota Statutes 2000, section 144A.44, 
 26.4   subdivision 1, is amended to read: 
 26.5      Subdivision 1.  [STATEMENT OF RIGHTS.] A person who 
 26.6   receives home care services has these rights: 
 26.7      (1) the right to receive written information about rights 
 26.8   in advance of receiving care or during the initial evaluation 
 26.9   visit before the initiation of treatment, including what to do 
 26.10  if rights are violated; 
 26.11     (2) the right to receive care and services according to a 
 26.12  suitable and up-to-date plan, and subject to accepted medical or 
 26.13  nursing standards, to take an active part in creating and 
 26.14  changing the plan and evaluating care and services; 
 26.15     (3) the right to be told in advance of receiving care about 
 26.16  the services that will be provided, the disciplines that will 
 26.17  furnish care, the frequency of visits proposed to be furnished, 
 26.18  other choices that are available, and the consequences of these 
 26.19  choices including the consequences of refusing these services; 
 26.20     (4) the right to be told in advance of any change in the 
 26.21  plan of care and to take an active part in any change; 
 26.22     (5) the right to refuse services or treatment; 
 26.23     (6) the right to know, in advance, any limits to the 
 26.24  services available from a provider, and the provider's grounds 
 26.25  for a termination of services; 
 26.26     (7) the right to know in advance of receiving care whether 
 26.27  the services are covered by health insurance, medical 
 26.28  assistance, or other health programs, the charges for services 
 26.29  that will not be covered by Medicare, and the charges that the 
 26.30  individual may have to pay; 
 26.31     (8) the right to know what the charges are for services, no 
 26.32  matter who will be paying the bill; 
 26.33     (9) the right to know that there may be other services 
 26.34  available in the community, including other home care services 
 26.35  and providers, and to know where to go for information about 
 26.36  these services; 
 27.1      (10) the right to choose freely among available providers 
 27.2   and to change providers after services have begun, within the 
 27.3   limits of health insurance, medical assistance, or other health 
 27.4   programs; 
 27.5      (11) the right to have personal, financial, and medical 
 27.6   information kept private, and to be advised of the provider's 
 27.7   policies and procedures regarding disclosure of such 
 27.8   information; 
 27.9      (12) the right to be allowed access to records and written 
 27.10  information from records in accordance with section 144.335; 
 27.11     (13) the right to be served by people who are properly 
 27.12  trained and competent to perform their duties; 
 27.13     (14) the right to be treated with courtesy and respect, and 
 27.14  to have the patient's property treated with respect; 
 27.15     (15) the right to be free from physical and verbal abuse; 
 27.16     (16) the right to reasonable, advance notice of changes in 
 27.17  services or charges, including at least ten days' advance notice 
 27.18  of the termination of a service by a provider, except in cases 
 27.19  where: 
 27.20     (i) the recipient of services engages in conduct that 
 27.21  alters the conditions of employment as specified in the 
 27.22  employment contract between the home care provider and the 
 27.23  individual providing home care services, or creates an abusive 
 27.24  or unsafe work environment for the individual providing home 
 27.25  care services; or 
 27.26     (ii) an emergency for the informal caregiver or a 
 27.27  significant change in the recipient's condition has resulted in 
 27.28  service needs that exceed the current service provider agreement 
 27.29  and that cannot be safely met by the home care provider; 
 27.30     (17) the right to a coordinated transfer when there will be 
 27.31  a change in the provider of services; 
 27.32     (18) the right to voice grievances regarding treatment or 
 27.33  care that is, or fails to be, furnished, or regarding the lack 
 27.34  of courtesy or respect to the patient or the patient's property; 
 27.35     (19) the right to know how to contact an individual 
 27.36  associated with the provider who is responsible for handling 
 28.1   problems and to have the provider investigate and attempt to 
 28.2   resolve the grievance or complaint; 
 28.3      (20) the right to know the name and address of the state or 
 28.4   county agency to contact for additional information or 
 28.5   assistance; and 
 28.6      (21) the right to assert these rights personally, or have 
 28.7   them asserted by the patient's family or guardian when the 
 28.8   patient has been judged incompetent, without retaliation. 
 28.9      Sec. 31.  [145.4241] [DEFINITIONS.] 
 28.10     Subdivision 1.  [APPLICABILITY.] As used in sections 
 28.11  145.4241 to 145.4246, the following terms have the meaning given 
 28.12  them. 
 28.13     Subd. 2.  [ABORTION.] "Abortion" means the use or 
 28.14  prescription of any instrument, medicine, drug, or any other 
 28.15  substance or device to intentionally terminate the pregnancy of 
 28.16  a female known to be pregnant, with an intention other than to 
 28.17  increase the probability of a live birth, to preserve the life 
 28.18  or health of the child after live birth, or to remove a dead 
 28.19  fetus.  
 28.20     Subd. 3.  [ATTEMPT TO PERFORM AN ABORTION.] "Attempt to 
 28.21  perform an abortion" means an act, or an omission of a 
 28.22  statutorily required act, that, under the circumstances as the 
 28.23  actor believes them to be, constitutes a substantial step in a 
 28.24  course of conduct planned to culminate in the performance of an 
 28.25  abortion in Minnesota in violation of sections 145.4241 to 
 28.26  145.4246. 
 28.27     Subd. 4.  [MEDICAL EMERGENCY.] "Medical emergency" means 
 28.28  any condition that, on the basis of the physician's good faith 
 28.29  clinical judgment, complicates the medical condition of a 
 28.30  pregnant female to the extent that: 
 28.31     (1) an immediate abortion of her pregnancy is necessary to 
 28.32  avert her death; or 
 28.33     (2) a 24-hour delay in performing an abortion creates a 
 28.34  serious risk of substantial and irreversible impairment of a 
 28.35  major bodily function.  
 28.36     Subd. 5.  [PHYSICIAN.] "Physician" means a person licensed 
 29.1   under chapter 147. 
 29.2      Subd. 6.  [PROBABLE GESTATIONAL AGE OF THE UNBORN 
 29.3   CHILD.] "Probable gestational age of the unborn child" means 
 29.4   what will, in the judgment of the physician, with reasonable 
 29.5   probability, be the gestational age of the unborn child at the 
 29.6   time the abortion is planned to be performed. 
 29.7      Sec. 32.  [145.4242] [INFORMED CONSENT.] 
 29.8      No abortion shall be performed in this state except with 
 29.9   the voluntary and informed consent of the female upon whom the 
 29.10  abortion is to be performed.  Except in the case of a medical 
 29.11  emergency, consent to an abortion is voluntary and informed only 
 29.12  if: 
 29.13     (1) the female is told the following, by telephone or in 
 29.14  person, by the physician who is to perform the abortion or by a 
 29.15  referring physician, at least 24 hours before the abortion: 
 29.16     (i) the name of the physician who will perform the 
 29.17  abortion; 
 29.18     (ii) the particular medical risks associated with the 
 29.19  particular abortion procedure to be employed including, when 
 29.20  medically accurate, the risks of infection, hemorrhage, breast 
 29.21  cancer, danger to subsequent pregnancies, and infertility; 
 29.22     (iii) the probable gestational age of the unborn child at 
 29.23  the time the abortion is to be performed; and 
 29.24     (iv) the medical risks associated with carrying her child 
 29.25  to term. 
 29.26     The information required by this clause may be provided by 
 29.27  telephone without conducting a physical examination or tests of 
 29.28  the patient, in which case the information required to be 
 29.29  provided may be based on facts supplied the physician by the 
 29.30  female and whatever other relevant information is reasonably 
 29.31  available to the physician.  It may not be provided by a tape 
 29.32  recording, but must be provided during a consultation in which 
 29.33  the physician is able to ask questions of the female and the 
 29.34  female is able to ask questions of the physician.  If a physical 
 29.35  examination, tests, or the availability of other information to 
 29.36  the physician subsequently indicate, in the medical judgment of 
 30.1   the physician, a revision of the information previously supplied 
 30.2   to the patient, that revised information may be communicated to 
 30.3   the patient at any time prior to the performance of the 
 30.4   abortion.  Nothing in this section may be construed to preclude 
 30.5   provision of required information in a language understood by 
 30.6   the patient through a translator; 
 30.7      (2) the female is informed, by telephone or in person, by 
 30.8   the physician who is to perform the abortion, by a referring 
 30.9   physician, or by an agent of either physician at least 24 hours 
 30.10  before the abortion: 
 30.11     (i) that medical assistance benefits may be available for 
 30.12  prenatal care, childbirth, and neonatal care; 
 30.13     (ii) that the father is liable to assist in the support of 
 30.14  her child, even in instances when the father has offered to pay 
 30.15  for the abortion; and 
 30.16     (iii) that she has the right to review the printed 
 30.17  materials described in section 145.4243.  The physician or the 
 30.18  physician's agent shall orally inform the female that the 
 30.19  materials have been provided by the state of Minnesota and that 
 30.20  they describe the unborn child and list agencies that offer 
 30.21  alternatives to abortion.  If the female chooses to view the 
 30.22  materials, they shall either be given to her at least 24 hours 
 30.23  before the abortion or mailed to her at least 72 hours before 
 30.24  the abortion by certified mail, restricted delivery to 
 30.25  addressee, which means the postal employee can only deliver the 
 30.26  mail to the addressee.  
 30.27     The information required by this clause may be provided by 
 30.28  a tape recording if provision is made to record or otherwise 
 30.29  register specifically whether the female does or does not choose 
 30.30  to review the printed materials; 
 30.31     (3) the female certifies in writing, prior to the abortion, 
 30.32  that the information described in this section has been 
 30.33  furnished her, and that she has been informed of her opportunity 
 30.34  to review the information referred to in clause (2); and 
 30.35     (4) prior to the performance of the abortion, the physician 
 30.36  who is to perform the abortion or the physician's agent receives 
 31.1   a copy of the written certification prescribed by clause (3). 
 31.2      Sec. 33.  [145.4243] [PRINTED INFORMATION.] 
 31.3      (a) Within 90 days after the effective date of sections 
 31.4   145.4241 to 145.4246, the department of health shall cause to be 
 31.5   published, in English and in each language that is the primary 
 31.6   language of two percent or more of the state's population, the 
 31.7   following printed materials in such a way as to ensure that the 
 31.8   information is easily comprehensible: 
 31.9      (1) geographically indexed materials designed to inform the 
 31.10  female of public and private agencies and services available to 
 31.11  assist a female through pregnancy, upon childbirth, and while 
 31.12  the child is dependent, including adoption agencies, which shall 
 31.13  include a comprehensive list of the agencies available, a 
 31.14  description of the services they offer, and a description of the 
 31.15  manner, including telephone numbers, in which they might be 
 31.16  contacted or, at the option of the department of health, printed 
 31.17  materials including a toll-free, 24-hours-a-day telephone number 
 31.18  that may be called to obtain, orally, such a list and 
 31.19  description of agencies in the locality of the caller and of the 
 31.20  services they offer; and 
 31.21     (2) materials designed to inform the female of the probable 
 31.22  anatomical and physiological characteristics of the unborn child 
 31.23  at two-week gestational increments from the time when a female 
 31.24  can be known to be pregnant to full term, including any relevant 
 31.25  information on the possibility of the unborn child's survival 
 31.26  and pictures or drawings representing the development of unborn 
 31.27  children at two-week gestational increments, provided that any 
 31.28  such pictures or drawings must contain the dimensions of the 
 31.29  fetus and must be realistic and appropriate for the stage of 
 31.30  pregnancy depicted.  The materials shall be objective, 
 31.31  nonjudgmental, and designed to convey only accurate scientific 
 31.32  information about the unborn child at the various gestational 
 31.33  ages.  The material shall also contain objective information 
 31.34  describing the methods of abortion procedures commonly employed, 
 31.35  the medical risks commonly associated with each procedure, the 
 31.36  possible detrimental psychological effects of abortion, the 
 32.1   medical risks commonly associated with each procedure, and the 
 32.2   medical risks commonly associated with carrying a child to term. 
 32.3      (b) The materials referred to in this section must be 
 32.4   printed in a typeface large enough to be clearly legible.  The 
 32.5   materials required under this section must be available at no 
 32.6   cost from the department of health upon request and in 
 32.7   appropriate number to any person, facility, or hospital.  
 32.8      Sec. 34.  [145.4244] [PROCEDURE IN CASE OF MEDICAL 
 32.9   EMERGENCY.] 
 32.10     When a medical emergency compels the performance of an 
 32.11  abortion, the physician shall inform the female, prior to the 
 32.12  abortion if possible, of the medical indications supporting the 
 32.13  physician's judgment that an abortion is necessary to avert her 
 32.14  death or that a 24-hour delay in conformance with section 
 32.15  145.4242 creates a serious risk of substantial and irreversible 
 32.16  impairment of a major bodily function. 
 32.17     Sec. 35.  [145.4245] [REMEDIES.] 
 32.18     Subdivision 1.  [CIVIL REMEDIES.] Any person upon whom an 
 32.19  abortion has been performed or the parent of a minor upon whom 
 32.20  an abortion has been performed may maintain an action against 
 32.21  the person who performed the abortion in knowing or reckless 
 32.22  violation of sections 145.4241 to 145.4246 for actual and 
 32.23  punitive damages.  Any person upon whom an abortion has been 
 32.24  attempted without complying with sections 145.4241 to 145.4246 
 32.25  may maintain an action against the person who attempted to 
 32.26  perform the abortion in knowing or reckless violation of 
 32.27  sections 145.4241 to 145.4246 for actual and punitive damages. 
 32.28     Subd. 2.  [ATTORNEY FEES.] If judgment is rendered in favor 
 32.29  of the plaintiff in any action described in this section, the 
 32.30  court shall also render judgment for a reasonable attorney's fee 
 32.31  in favor of the plaintiff against the defendant.  If judgment is 
 32.32  rendered in favor of the defendant and the court finds that the 
 32.33  plaintiff's suit was frivolous and brought in bad faith, the 
 32.34  court shall also render judgment for a reasonable attorney's fee 
 32.35  in favor of the defendant against the plaintiff. 
 32.36     Subd. 3.  [PROTECTION OF PRIVACY IN COURT PROCEEDINGS.] In 
 33.1   every civil action brought under sections 145.4241 to 145.4246, 
 33.2   the court shall rule whether the anonymity of any female upon 
 33.3   whom an abortion has been performed or attempted shall be 
 33.4   preserved from public disclosure if she does not give her 
 33.5   consent to such disclosure.  The court, upon motion or sua 
 33.6   sponte, shall make such a ruling and, upon determining that her 
 33.7   anonymity should be preserved, shall issue orders to the 
 33.8   parties, witnesses, and counsel and shall direct the sealing of 
 33.9   the record and exclusion of individuals from courtrooms or 
 33.10  hearing rooms to the extent necessary to safeguard her identity 
 33.11  from public disclosure.  Each order must be accompanied by 
 33.12  specific written findings explaining why the anonymity of the 
 33.13  female should be preserved from public disclosure, why the order 
 33.14  is essential to that end, how the order is narrowly tailored to 
 33.15  serve that interest, and why no reasonable, less restrictive 
 33.16  alternative exists.  In the absence of written consent of the 
 33.17  female upon whom an abortion has been performed or attempted, 
 33.18  anyone, other than a public official, who brings an action under 
 33.19  subdivision 1, shall do so under a pseudonym.  This section may 
 33.20  not be construed to conceal the identity of the plaintiff or of 
 33.21  witnesses from the defendant. 
 33.22     Sec. 36.  [145.4246] [SEVERABILITY.] 
 33.23     If any one or more provision, section, subsection, 
 33.24  sentence, clause, phrase, or word of sections 145.4241 to 
 33.25  145.4246 or the application thereof to any person or 
 33.26  circumstance is found to be unconstitutional, the same is hereby 
 33.27  declared to be severable and the balance of sections 145.4241 to 
 33.28  145.4246 shall remain effective notwithstanding such 
 33.29  unconstitutionality.  The legislature hereby declares that it 
 33.30  would have passed sections 145.4241 to 145.4246, and each 
 33.31  provision, section, subsection, sentence, clause, phrase, or 
 33.32  word thereof, irrespective of the fact that any one or more 
 33.33  provision, section, subsection, sentence, clause, phrase, or 
 33.34  word be declared unconstitutional. 
 33.35     Sec. 37.  Minnesota Statutes 2000, section 145.881, 
 33.36  subdivision 2, is amended to read: 
 34.1      Subd. 2.  [DUTIES.] The advisory task force shall meet on a 
 34.2   regular basis to perform the following duties:  
 34.3      (a) review and report on the health care needs of mothers 
 34.4   and children throughout the state of Minnesota; 
 34.5      (b) review and report on the type, frequency and impact of 
 34.6   maternal and child health care services provided to mothers and 
 34.7   children under existing maternal and child health care programs, 
 34.8   including programs administered by the commissioner of health; 
 34.9      (c) establish, review, and report to the commissioner a 
 34.10  list of program guidelines and criteria which the advisory task 
 34.11  force considers essential to providing an effective maternal and 
 34.12  child health care program to low income populations and high 
 34.13  risk persons and fulfilling the purposes defined in section 
 34.14  145.88; 
 34.15     (d) review staff recommendations of the department of 
 34.16  health regarding maternal and child health grant awards before 
 34.17  the awards are made; 
 34.18     (e) make recommendations to the commissioner for the use of 
 34.19  other federal and state funds available to meet maternal and 
 34.20  child health needs; 
 34.21     (f) make recommendations to the commissioner of health on 
 34.22  priorities for funding the following maternal and child health 
 34.23  services:  (1) prenatal, delivery and postpartum care, (2) 
 34.24  comprehensive health care for children, especially from birth 
 34.25  through five years of age, (3) adolescent health services, (4) 
 34.26  family planning services, (5) preventive dental care, (6) 
 34.27  special services for chronically ill and handicapped children 
 34.28  and (7) any other services which promote the health of mothers 
 34.29  and children; and 
 34.30     (g) make recommendations to the commissioner of health on 
 34.31  the process to distribute, award and administer the maternal and 
 34.32  child health block grant funds; and 
 34.33     (h) review the measures that are used to define the 
 34.34  variables of the funding distribution formula in section 
 34.35  145.882, subdivision 4a, every two years and make 
 34.36  recommendations to the commissioner of health for changes based 
 35.1   upon principles established by the advisory task force for this 
 35.2   purpose.  
 35.3      Sec. 38.  Minnesota Statutes 2000, section 145.882, is 
 35.4   amended by adding a subdivision to read: 
 35.5      Subd. 4a.  [ALLOCATION TO COMMUNITY HEALTH BOARDS.] (a) 
 35.6   Federal maternal and child health block grant money remaining 
 35.7   after distributions made under subdivision 2 and money 
 35.8   appropriated for allocation to community health boards must be 
 35.9   allocated according to paragraphs (b) to (d) to community health 
 35.10  boards as defined in section 145A.02, subdivision 5.  
 35.11     (b) All community health boards must receive 95 percent of 
 35.12  the funding awarded to them for the 1998-1999 funding cycle.  If 
 35.13  the amount of state and federal funding available is less than 
 35.14  95 percent of the amount awarded to community health boards for 
 35.15  the 1998-1999 funding cycle, the available funding must be 
 35.16  apportioned to reflect a proportional decrease for each 
 35.17  recipient. 
 35.18     (c) The federal and state funding remaining after 
 35.19  distributions made under paragraph (b) must be allocated to each 
 35.20  community health board based on the following three variables: 
 35.21     (1) 25 percent based on the maternal and child population 
 35.22  in the area served by the community health board; 
 35.23     (2) 50 percent based on the following factors, as 
 35.24  determined by averaging the data available for the three most 
 35.25  recent years: 
 35.26     (i) the proportion of infants in the area served by the 
 35.27  community health board whose weight at birth was less than 2,500 
 35.28  grams; 
 35.29     (ii) the proportion of mothers in the area served by the 
 35.30  community health board who received inadequate or no prenatal 
 35.31  care; 
 35.32     (iii) the proportion of births in the area served by the 
 35.33  community health board to women under age 19; and 
 35.34     (iv) the proportion of births in the area served by the 
 35.35  community health board to American Indian women and women of 
 35.36  color; and 
 36.1      (3) 25 percent based on the income of the maternal and 
 36.2   child population in the area served by the community health 
 36.3   board. 
 36.4      (d) Each variable must be expressed as a city or county 
 36.5   score consisting of the city or county frequency of each 
 36.6   variable in relation to the statewide frequency of the 
 36.7   variable.  A total score for each city or county jurisdiction 
 36.8   must be computed by totaling the scores of the three variables.  
 36.9   Each community health board must be allocated an amount equal to 
 36.10  the total score obtained for the city, county, or counties in 
 36.11  its area multiplied by the amount of money available. 
 36.12     Sec. 39.  Minnesota Statutes 2000, section 145.882, 
 36.13  subdivision 7, is amended to read: 
 36.14     Subd. 7.  [USE OF BLOCK GRANT MONEY.] (a) Maternal and 
 36.15  child health block grant money allocated to a community health 
 36.16  board or community health services area under this section must 
 36.17  be used for qualified programs for high risk and low-income 
 36.18  individuals.  Block grant money must be used for programs that: 
 36.19     (1) specifically address the highest risk populations, 
 36.20  particularly low-income and minority groups with a high rate of 
 36.21  infant mortality and children with low birth weight, by 
 36.22  providing services, including excluding prepregnancy family 
 36.23  planning services, calculated to produce measurable decreases in 
 36.24  infant mortality rates, instances of children with low birth 
 36.25  weight, and medical complications associated with pregnancy and 
 36.26  childbirth, including infant mortality, low birth rates, and 
 36.27  medical complications arising from chemical abuse by a mother 
 36.28  during pregnancy; 
 36.29     (2) specifically target pregnant women whose age, medical 
 36.30  condition, maternal history, or chemical abuse substantially 
 36.31  increases the likelihood of complications associated with 
 36.32  pregnancy and childbirth or the birth of a child with an 
 36.33  illness, disability, or special medical needs; 
 36.34     (3) specifically address the health needs of young children 
 36.35  who have or are likely to have a chronic disease or disability 
 36.36  or special medical needs, including physical, neurological, 
 37.1   emotional, and developmental problems that arise from chemical 
 37.2   abuse by a mother during pregnancy; 
 37.3      (4) provide family planning and preventive medical care, 
 37.4   excluding prepregnancy family planning services, for 
 37.5   specifically identified target populations, such as minority and 
 37.6   low-income teenagers, in a manner calculated to decrease the 
 37.7   occurrence of inappropriate pregnancy and minimize the risk of 
 37.8   complications associated with pregnancy and childbirth; or 
 37.9      (5) specifically address the frequency and severity of 
 37.10  childhood injuries and other child and adolescent health 
 37.11  problems in high-risk target populations by providing services, 
 37.12  excluding prepregnancy family planning services, calculated to 
 37.13  produce measurable decreases in mortality and 
 37.14  morbidity.  However, money may be used for this purpose only if 
 37.15  the community health board's application includes program 
 37.16  components for the purposes in clauses (1) to (4) in the 
 37.17  proposed geographic service area and the total expenditure for 
 37.18  injury-related programs under this clause does not exceed ten 
 37.19  percent of the total allocation under subdivision 3. 
 37.20     (b) Maternal and child health block grant money may be used 
 37.21  for purposes other than the purposes listed in this subdivision 
 37.22  only under the following conditions:  
 37.23     (1) the community health board or community health services 
 37.24  area can demonstrate that existing programs fully address the 
 37.25  needs of the highest risk target populations described in this 
 37.26  subdivision; or 
 37.27     (2) the money is used to continue projects that received 
 37.28  funding before creation of the maternal and child health block 
 37.29  grant in 1981. 
 37.30     (c) Projects that received funding before creation of the 
 37.31  maternal and child health block grant in 1981, must be allocated 
 37.32  at least the amount of maternal and child health special project 
 37.33  grant funds received in 1989, unless (1) the local board of 
 37.34  health provides equivalent alternative funding for the project 
 37.35  from another source; or (2) the local board of health 
 37.36  demonstrates that the need for the specific services provided by 
 38.1   the project has significantly decreased as a result of changes 
 38.2   in the demographic characteristics of the population, or other 
 38.3   factors that have a major impact on the demand for services.  If 
 38.4   the amount of federal funding to the state for the maternal and 
 38.5   child health block grant is decreased, these projects must 
 38.6   receive a proportional decrease as required in subdivision 1.  
 38.7   Increases in allocation amounts to local boards of health under 
 38.8   subdivision 4 may be used to increase funding levels for these 
 38.9   projects. 
 38.10     Sec. 40.  Minnesota Statutes 2000, section 145.885, 
 38.11  subdivision 2, is amended to read: 
 38.12     Subd. 2.  [ADDITIONAL REQUIREMENTS FOR COMMUNITY BOARDS OF 
 38.13  HEALTH.] Applications by community health boards as defined in 
 38.14  section 145A.02, subdivision 5, under section 145.882, 
 38.15  subdivision 3 4a, must also contain a summary of the process 
 38.16  used to develop the local program, including evidence that the 
 38.17  community health board notified local public and private 
 38.18  providers of the availability of funding through the community 
 38.19  health board for maternal and child health services; a list of 
 38.20  all public and private agency requests for grants submitted to 
 38.21  the community health board indicating which requests were 
 38.22  included in the grant application; and an explanation of how 
 38.23  priorities were established for selecting the requests to be 
 38.24  included in the grant application.  The community health board 
 38.25  shall include, with the grant application, a written statement 
 38.26  of the criteria to be applied to public and private agency 
 38.27  requests for funding. 
 38.28     Sec. 41.  Minnesota Statutes 2000, section 145.924, is 
 38.29  amended to read: 
 38.30     145.924 [AIDS PREVENTION GRANTS.] 
 38.31     Subdivision 1.  [GRANT AWARDS.] (a) The commissioner may 
 38.32  award grants to boards of health as defined in section 145A.02, 
 38.33  subdivision 2, state agencies, state councils, or nonprofit 
 38.34  corporations to provide evaluation and counseling services to 
 38.35  populations at risk for acquiring human immunodeficiency virus 
 38.36  infection, including, but not limited to, minorities, 
 39.1   adolescents, intravenous drug users, and homosexual men.  
 39.2      (b) The commissioner may award grants to agencies 
 39.3   experienced in providing services to communities of color, for 
 39.4   the design of innovative outreach and education programs for 
 39.5   targeted groups within the community who may be at risk of 
 39.6   acquiring the human immunodeficiency virus infection, including 
 39.7   intravenous drug users and their partners, adolescents, gay and 
 39.8   bisexual individuals and women.  Grants shall be awarded on a 
 39.9   request for proposal basis and shall include funds for 
 39.10  administrative costs.  Priority for grants shall be given to 
 39.11  agencies or organizations that have experience in providing 
 39.12  service to the particular community which the grantee proposes 
 39.13  to serve; that have policymakers representative of the targeted 
 39.14  population; that have experience in dealing with issues relating 
 39.15  to HIV/AIDS; and that have the capacity to deal effectively with 
 39.16  persons of differing sexual orientations.  For purposes of this 
 39.17  paragraph, the "communities of color" are:  the American-Indian 
 39.18  community; the Hispanic community; the African-American 
 39.19  community; and the Asian-Pacific community. 
 39.20     (c) All state grants awarded under this section subdivision 
 39.21  for programs targeted to adolescents shall include the promotion 
 39.22  of abstinence from sexual activity and drug use. 
 39.23     Subd. 2.  [OUTCOMES.] The commissioner, in consultation 
 39.24  with boards of health, agencies, councils, and nonprofit 
 39.25  organizations involved in human immunodeficiency virus infection 
 39.26  prevention efforts shall establish measurable outcomes to 
 39.27  determine the effectiveness of the grants provided under this 
 39.28  section in reducing the number of people who acquire human 
 39.29  immunodeficiency virus, the rates of infection, and average 
 39.30  numbers of sexual partners for populations served by grants 
 39.31  funded under this section. 
 39.32     Subd. 3.  [EVALUATION.] (a) Using the outcomes established 
 39.33  according to subdivision 2, the commissioner shall conduct a 
 39.34  biennial evaluation of activities funded under this section.  
 39.35  The evaluation must include: 
 39.36     (1) the effect of these activities on the number of people 
 40.1   who acquire human immunodeficiency virus and the rates of 
 40.2   infection; 
 40.3      (2) the effect of these activities on average numbers of 
 40.4   sexual partners for populations served by grants funded under 
 40.5   this section; and 
 40.6      (3) a longitudinal tracking of outcomes for targeted 
 40.7   populations who are served under subdivision 1, paragraphs (a) 
 40.8   and (b). 
 40.9      (b) Grant recipients shall cooperate with the commissioner 
 40.10  in the evaluation and shall provide the commissioner with the 
 40.11  information needed to conduct the evaluation.  Beginning January 
 40.12  15, 2003, the results of each evaluation must be submitted to 
 40.13  the chairs of the policy and finance committees in the house and 
 40.14  senate with jurisdiction over health and human services. 
 40.15     Sec. 42.  Minnesota Statutes 2000, section 145.925, 
 40.16  subdivision 1, is amended to read: 
 40.17     Subdivision 1.  [ELIGIBLE ORGANIZATIONS; PURPOSE.] The 
 40.18  commissioner of health may make special grants to cities, 
 40.19  counties, tribal governments, or groups of cities or, counties, 
 40.20  or nonprofit corporations or tribal governments to provide 
 40.21  prepregnancy family planning services. targeted to low-income 
 40.22  and minority populations.  A city, county, tribal government, or 
 40.23  group of cities, counties, or tribal governments that receives a 
 40.24  grant is responsible for ensuring that the grant funds are used 
 40.25  for services targeted to low-income and minority populations, 
 40.26  and must establish a goal for reducing specific pregnancy rates 
 40.27  in the service area.  In determining populations to serve and 
 40.28  services to provide, a city, county, tribal government, or group 
 40.29  of cities, counties, or tribal governments must consider the 
 40.30  spacing of pregnancies in low-income and minority populations in 
 40.31  the service area, teen birth rates in the service area, and the 
 40.32  needs of populations of color in the service area.  A city, 
 40.33  county, tribal government, or group of cities, counties, or 
 40.34  tribal governments may contract for the provision of 
 40.35  prepregnancy family planning services using grant funds provided 
 40.36  under this section only if the contract is specifically 
 41.1   authorized by the governing body of the city, county, or tribal 
 41.2   government that is contracting for the services. 
 41.3      Any organization or an affiliate of an organization which 
 41.4   provides abortions, promotes abortions, or directly refers for 
 41.5   abortions, shall be ineligible to receive funds under this 
 41.6   subdivision. 
 41.7      Sec. 43.  Minnesota Statutes 2000, section 145.925, 
 41.8   subdivision 1a, is amended to read: 
 41.9      Subd. 1a.  [FAMILY PLANNING SERVICES; DEFINED.] "Family 
 41.10  planning services" means counseling by trained personnel 
 41.11  regarding family planning; distribution of information relating 
 41.12  to family planning, referral to licensed physicians or local 
 41.13  health agencies for consultation, examination, medical 
 41.14  treatment, genetic counseling, and prescriptions for the purpose 
 41.15  of family planning; and the distribution of family planning 
 41.16  products, such as charts, thermometers, drugs, medical 
 41.17  preparations, and contraceptive devices.  Family planning 
 41.18  services do not include services that, directly or indirectly, 
 41.19  encourage, counsel, refer, or provide abortions or abortion 
 41.20  referrals.  For purposes of sections 145A.01 to 145A.14, family 
 41.21  planning shall mean voluntary action by individuals to prevent 
 41.22  or aid conception but does not include the performance, or make 
 41.23  referrals for encouragement of voluntary termination of 
 41.24  pregnancy services that, directly or indirectly, encourage, 
 41.25  counsel, refer, or provide abortions or abortion referrals.  
 41.26     Sec. 44.  [145.9257] [TEEN PREGNANCY PREVENTION.] 
 41.27     Subdivision 1.  [GOAL.] It is the goal of the state to 
 41.28  reduce teen pregnancy rates by 24 percent by 2006.  To do so, 
 41.29  the commissioner of health shall establish a grant program to 
 41.30  reduce the rates of unintended teen pregnancies in the state.  
 41.31  If this goal of reducing teen pregnancy rates by 24 percent is 
 41.32  not met by December 31, 2006, this section expires June 30, 
 41.33  2007.  No funds awarded under this section may be used for 
 41.34  medical services or family planning services or for services 
 41.35  that, directly or indirectly, encourage, counsel, refer, or 
 41.36  provide abortions or abortion referrals. 
 42.1      Any organization or an affiliate of an organization which 
 42.2   provides abortions, promotes abortions, or directly refers for 
 42.3   abortions, shall be ineligible to receive funds under this 
 42.4   section. 
 42.5      Subd. 2.  [STATE-COMMUNITY PARTNERSHIPS; PLAN.] The 
 42.6   commissioner, in consultation with the commissioner of children, 
 42.7   families, and learning; the commissioner of human services; the 
 42.8   maternal and child health advisory task force under section 
 42.9   145.881; the Indian affairs council under section 3.922; the 
 42.10  council on affairs of Chicano/Latino people under section 
 42.11  3.9223; the council on Black Minnesotans under section 3.9225; 
 42.12  the council on Asian-Pacific Minnesotans under section 3.9226; 
 42.13  community health boards as defined in section 145A.02; tribal 
 42.14  governments; nonprofit community organizations; and others 
 42.15  interested in teen pregnancy prevention, shall develop and 
 42.16  implement a comprehensive, coordinated plan to reduce the number 
 42.17  of teen pregnancies. 
 42.18     Subd. 3.  [MEASURABLE OUTCOMES.] The commissioner, in 
 42.19  consultation with the commissioners and community partners 
 42.20  listed in subdivision 2, shall establish measurable outcomes to 
 42.21  achieve the goal specified in subdivision 1 and to determine the 
 42.22  effectiveness of the grants provided under this section in 
 42.23  reducing teen pregnancies.  The development of measurable 
 42.24  outcomes must be completed before any funds are distributed 
 42.25  under this section. 
 42.26     Subd. 4.  [STATEWIDE ASSESSMENT.] The commissioner shall 
 42.27  use and enhance current statewide assessments of teen pregnancy 
 42.28  risk behaviors and attitudes among youth to establish a baseline 
 42.29  to measure the statewide effect of teen pregnancy prevention 
 42.30  activities.  To the extent feasible, the commissioner shall 
 42.31  conduct the assessment so that the results may be compared to 
 42.32  national data. 
 42.33     Subd. 5.  [PROCESS.] The commissioner, in consultation with 
 42.34  the commissioners and community partners listed in subdivision 
 42.35  2, shall develop the criteria and procedures used to allocate 
 42.36  grants under this section.  In developing the criteria, the 
 43.1   commissioner shall establish an administrative cost limit for 
 43.2   grant recipients.  At the time a grant is awarded, the 
 43.3   commissioner shall provide a grant recipient with information on 
 43.4   the outcomes established according to subdivision 3. 
 43.5      Subd. 6.  [TEEN PREGNANCY PREVENTION DISPARITY GRANTS.] (a) 
 43.6   The commissioner shall award competitive grants to eligible 
 43.7   applicants for projects to reduce disparities in unintended teen 
 43.8   pregnancy rates for American Indians and populations of color, 
 43.9   as compared with unintended teen pregnancy rates for whites. 
 43.10     (b) No funds awarded under this subdivision may be used for 
 43.11  medical services or family planning services or for services 
 43.12  that, directly or indirectly, encourage, counsel, refer, or 
 43.13  provide abortions or abortion referrals. 
 43.14     Any organization or an affiliate of an organization which 
 43.15  provides abortions, promotes abortions, or directly refers for 
 43.16  abortions, shall be ineligible to receive funds under this 
 43.17  subdivision. 
 43.18     (c) Eligible applicants may include, but are not limited 
 43.19  to, nonprofit organizations, school districts, faith-based 
 43.20  organizations, community health boards, and tribal governments.  
 43.21  Applicants must submit proposals to the commissioner.  A 
 43.22  proposal must specify the strategies to be implemented and must 
 43.23  take into account the need for a coordinated, statewide teen 
 43.24  pregnancy prevention effort.  Strategies may include youth 
 43.25  development programs, after-school enrichment programs, youth 
 43.26  mentoring programs, academic support programs, and abstinence 
 43.27  until marriage education programs. 
 43.28     (d) The commissioner shall give priority to applicants who 
 43.29  demonstrate that their proposed project:  
 43.30     (1) emphasizes abstinence until marriage; 
 43.31     (2) is research-based or based on proven, effective 
 43.32  strategies; 
 43.33     (3) is designed to coordinate with related youth risk 
 43.34  behavior reduction activities; 
 43.35     (4) involves youth and parents in the project's development 
 43.36  and implementation; 
 44.1      (5) reflects racially and ethnically appropriate 
 44.2   approaches; and 
 44.3      (6) will be implemented through or with persons or 
 44.4   community-based organizations that reflect the race or ethnicity 
 44.5   of the population to be reached. 
 44.6      Subd. 7.  [HIGH-RISK COMMUNITY TEEN PREGNANCY PREVENTION 
 44.7   GRANTS.] (a) The commissioner shall award grants to communities 
 44.8   that have significant risk factors for teen pregnancies, that 
 44.9   currently have in place youth development programs, and that are 
 44.10  interested in expanding existing efforts to prevent teen 
 44.11  pregnancies. 
 44.12     (b) No funds awarded under this subdivision may be used for 
 44.13  medical services or family planning services or for services 
 44.14  that, directly or indirectly, encourage, counsel, refer, or 
 44.15  provide abortions or abortion referrals. 
 44.16     Any organization or an affiliate of an organization which 
 44.17  provides abortions, promotes abortions, or directly refers for 
 44.18  abortions, shall be ineligible to receive funds under this 
 44.19  subdivision. 
 44.20     (c) To be eligible for a grant under this subdivision, an 
 44.21  applicant must be a tribal government or a community health 
 44.22  board as defined in section 145A.02.  Applicants must submit 
 44.23  proposals to the commissioner.  A proposal must specify the 
 44.24  strategies to be implemented.  Strategies may include, but are 
 44.25  not limited to, youth development programs, youth mentoring 
 44.26  programs, academic support programs, and abstinence until 
 44.27  marriage education programs.  Applicants must demonstrate that a 
 44.28  proposed project: 
 44.29     (1) emphasizes abstinence until marriage; 
 44.30     (2) is research-based or based on proven, effective 
 44.31  strategies; 
 44.32     (3) is designed to coordinate with related youth risk 
 44.33  behavior reduction activities; 
 44.34     (4) involves youth and parents in the project's development 
 44.35  and implementation; 
 44.36     (5) reflects racially and ethnically appropriate 
 45.1   approaches; and 
 45.2      (6) will be implemented through or with persons or 
 45.3   community-based organizations that reflect the race or ethnicity 
 45.4   of the population to be reached. 
 45.5      (d) Grants may be awarded to up to 15 community health 
 45.6   boards and three tribal governments based on areas having the 
 45.7   highest risk factors for teen pregnancies.  The commissioner 
 45.8   shall award grants based on the following risk factors: 
 45.9      (1) the proportion of teens in the applicant's service area 
 45.10  who are sexually active; 
 45.11     (2) the proportion of births to teens in the applicant's 
 45.12  service area; and 
 45.13     (3) the proportion of births to teens who are American 
 45.14  Indian or of a population of color in the applicant's service 
 45.15  area. 
 45.16     Subd. 8.  [ADOLESCENT PARENT GRANTS.] The commissioner 
 45.17  shall transfer funds to the commissioner of children, families, 
 45.18  and learning to increase the number of adolescent parent grants 
 45.19  currently provided by the commissioner of children, families, 
 45.20  and learning under section 124D.33. 
 45.21     Subd. 9.  [COORDINATION.] The commissioner shall coordinate 
 45.22  the projects and initiatives funded under this section with 
 45.23  other efforts at the local, state, and national levels to avoid 
 45.24  duplication and promote complementary efforts. 
 45.25     Subd. 10.  [EVALUATION.] Using the outcomes established 
 45.26  according to subdivision 3, the commissioner shall conduct a 
 45.27  biennial evaluation of the impact of each teen pregnancy 
 45.28  prevention initiative in this section.  Grant recipients and the 
 45.29  commissioner of children, families, and learning shall cooperate 
 45.30  with the commissioner in the evaluation and shall provide the 
 45.31  commissioner with the information needed to conduct the 
 45.32  evaluation. 
 45.33     Subd. 11.  [REPORT.] By January 15, 2002, and January 15 of 
 45.34  each even-numbered year thereafter, the commissioner shall 
 45.35  submit a report to the legislature on the projects funded under 
 45.36  this section and the results of the biennial evaluation. 
 46.1      Sec. 45.  [145.9268] [COMMUNITY CLINIC GRANTS.] 
 46.2      Subdivision 1.  [DEFINITION.] For purposes of this section, 
 46.3   "eligible community clinic" means: 
 46.4      (1) a clinic that provides services under conditions as 
 46.5   defined in Minnesota Rules, part 9505.0255 or 9505.0380, and 
 46.6   utilizes a sliding fee scale to determine eligibility for 
 46.7   charity care; 
 46.8      (2) an Indian tribal government or Indian health service 
 46.9   unit; or 
 46.10     (3) a consortium of clinics comprised of entities under 
 46.11  clause (1) or (2). 
 46.12     Subd. 2.  [GRANTS AUTHORIZED.] The commissioner of health 
 46.13  shall award grants to eligible community clinics to improve the 
 46.14  ongoing viability of Minnesota's clinic-based safety net 
 46.15  providers.  Grants shall be awarded to support the capacity of 
 46.16  eligible community clinics to serve low-income populations, 
 46.17  reduce current or future uncompensated care burdens, or provide 
 46.18  for improved care delivery infrastructure. 
 46.19     Subd. 3.  [ALLOCATION OF GRANTS.] (a) To receive a grant 
 46.20  under this section, an eligible community clinic must submit an 
 46.21  application to the commissioner of health by the deadline 
 46.22  established by the commissioner.  A grant may be awarded upon 
 46.23  the signing of a grant contract. 
 46.24     (b) An application must be on a form and contain 
 46.25  information as specified by the commissioner but at a minimum 
 46.26  must contain: 
 46.27     (1) a description of the project for which grant funds will 
 46.28  be used; 
 46.29     (2) a description of the problem the proposed project will 
 46.30  address; and 
 46.31     (3) a description of achievable objectives, a workplan, and 
 46.32  a timeline for project completion. 
 46.33     (c) The commissioner shall review each application to 
 46.34  determine whether the application is complete and whether the 
 46.35  applicant and the project are eligible for a grant.  In 
 46.36  evaluating applications according to paragraph (e), the 
 47.1   commissioner shall establish criteria including, but not limited 
 47.2   to:  the priority level of the project; the applicant's 
 47.3   thoroughness and clarity in describing the problem; a 
 47.4   description of the applicant's proposed project; the manner in 
 47.5   which the applicant will demonstrate the effectiveness of the 
 47.6   project; and evidence of efficiencies and effectiveness gained 
 47.7   through collaborative efforts.  The commissioner may also take 
 47.8   into account other relevant factors, including, but not limited 
 47.9   to, the percentage for which uninsured patients represent the 
 47.10  applicant's patient base.  During application review, the 
 47.11  commissioner may request additional information about a proposed 
 47.12  project, including information on project cost.  Failure to 
 47.13  provide the information requested disqualifies an applicant. 
 47.14     (d) A grant awarded to an eligible community clinic may not 
 47.15  exceed $300,000 per eligible community clinic.  For an applicant 
 47.16  applying as a consortium of clinics, a grant may not exceed 
 47.17  $300,000 per clinic included in the consortium.  The 
 47.18  commissioner has discretion over the number of grants awarded. 
 47.19     (e) In determining which eligible community clinics will 
 47.20  receive grants under this section, the commissioner shall give 
 47.21  preference to those grant applications that show evidence of 
 47.22  collaboration with other eligible community clinics, hospitals, 
 47.23  health care providers, or community organizations.  In addition, 
 47.24  the commissioner shall give priority, in declining order, to 
 47.25  grant applications for projects that: 
 47.26     (1) establish, update, or improve information, data 
 47.27  collection, or billing systems; 
 47.28     (2) procure, modernize, remodel, or replace equipment used 
 47.29  an the delivery of direct patient care at a clinic; 
 47.30     (3) provide improvements for care delivery, such as 
 47.31  increased translation and interpretation services; 
 47.32     (4) provide a direct offset to expenses incurred for 
 47.33  charity care services; or 
 47.34     (5) other projects determined by the commissioner to 
 47.35  improve the ability of applicants to provide care to the 
 47.36  vulnerable populations they serve. 
 48.1      Subd. 4.  [EVALUATION.] The commissioner of health shall 
 48.2   evaluate the overall effectiveness of the grant program.  The 
 48.3   commissioner shall collect progress reports to evaluate the 
 48.4   grant program from the eligible community clinics receiving 
 48.5   grants. 
 48.6      Sec. 46.  [145.928] [ELIMINATING HEALTH DISPARITIES.] 
 48.7      Subdivision 1.  [GOAL; ESTABLISHMENT.] It is the goal of 
 48.8   the state, by 2010, to decrease by 50 percent the disparities in 
 48.9   infant mortality rates and adult and child immunization rates 
 48.10  for American Indians and populations of color, as compared with 
 48.11  rates for whites.  To do so and to achieve other measurable 
 48.12  outcomes, the commissioner of health shall establish a program 
 48.13  to close the gap in the health status of American Indians and 
 48.14  populations of color as compared with whites in the following 
 48.15  priority areas:  infant mortality, breast and cervical cancer 
 48.16  screening, HIV/AIDS and sexually transmitted infections, adult 
 48.17  and child immunizations, cardiovascular disease, diabetes, and 
 48.18  accidental injuries and violence.  If this goal of reducing 
 48.19  disparities in infant mortality rates and adult and child 
 48.20  immunization rates is not met by December 31, 2010, this section 
 48.21  expires June 30, 2011. 
 48.22     Subd. 2.  [STATE-COMMUNITY PARTNERSHIPS; PLAN.] The 
 48.23  commissioner, in partnership with culturally-based community 
 48.24  organizations; the Indian affairs council under section 3.922; 
 48.25  the council on affairs of Chicano/Latino people under section 
 48.26  3.9223; the council on Black Minnesotans under section 3.9225; 
 48.27  the council on Asian-Pacific Minnesotans under section 3.9226; 
 48.28  community health boards as defined in section 145A.02; and 
 48.29  tribal governments, shall develop and implement a comprehensive, 
 48.30  coordinated plan to reduce health disparities in the health 
 48.31  disparity priority areas identified in subdivision 1. 
 48.32     Subd. 3.  [MEASURABLE OUTCOMES.] The commissioner, in 
 48.33  consultation with the community partners listed in subdivision 
 48.34  2, shall establish measurable outcomes to achieve the goal 
 48.35  specified in subdivision 1 and to determine the effectiveness of 
 48.36  the grants and other activities funded under this section in 
 49.1   reducing health disparities in the priority areas identified in 
 49.2   subdivision 1.  The development of measurable outcomes must be 
 49.3   completed before any funds are distributed under this section. 
 49.4      Subd. 4.  [STATEWIDE ASSESSMENT.] The commissioner shall 
 49.5   enhance current data tools to ensure a statewide assessment of 
 49.6   the risk behaviors associated with the health disparity priority 
 49.7   areas identified in subdivision 1.  The statewide assessment 
 49.8   must be used to establish a baseline to measure the effect of 
 49.9   activities funded under this section.  To the extent feasible, 
 49.10  the commissioner shall conduct the assessment so that the 
 49.11  results may be compared to national data. 
 49.12     Subd. 5.  [TECHNICAL ASSISTANCE.] The commissioner shall 
 49.13  provide the necessary expertise to grant applicants to ensure 
 49.14  that submitted proposals are likely to be successful in reducing 
 49.15  the health disparities identified in subdivision 1.  The 
 49.16  commissioner shall provide grant recipients with guidance and 
 49.17  training on best or most promising strategies to use to reduce 
 49.18  the health disparities identified in subdivision 1.  The 
 49.19  commissioner shall also assist grant recipients in the 
 49.20  development of materials and procedures to evaluate local 
 49.21  community activities. 
 49.22     Subd. 6.  [PROCESS.] (a) The commissioner, in consultation 
 49.23  with the community partners listed in subdivision 2, shall 
 49.24  develop the criteria and procedures used to allocate grants 
 49.25  under this section.  In developing the criteria, the 
 49.26  commissioner shall establish an administrative cost limit for 
 49.27  grant recipients.  At the time a grant is awarded, the 
 49.28  commissioner must provide a grant recipient with information on 
 49.29  the outcomes established according to subdivision 3. 
 49.30     (b) A grant recipient must coordinate its activities to 
 49.31  reduce health disparities with other entities receiving funds 
 49.32  under this section that are in the grant recipient's service 
 49.33  area. 
 49.34     Subd. 7.  [COMMUNITY GRANT PROGRAM; IMMUNIZATION RATES AND 
 49.35  INFANT MORTALITY RATES.] (a) The commissioner shall award grants 
 49.36  to eligible applicants for local or regional projects and 
 50.1   initiatives directed at reducing health disparities in one or 
 50.2   both of the following priority areas: 
 50.3      (1) decreasing racial and ethnic disparities in infant 
 50.4   mortality rates; or 
 50.5      (2) increasing adult and child immunization rates in 
 50.6   nonwhite racial and ethnic populations. 
 50.7      (b) The commissioner may award up to 20 percent of the 
 50.8   funds available as planning grants.  Planning grants must be 
 50.9   used to address such areas as community assessment, coordination 
 50.10  activities, and development of community supported strategies. 
 50.11     (c) Eligible applicants may include, but are not limited 
 50.12  to, faith-based organizations, social service organizations, 
 50.13  community nonprofit organizations, community health boards, 
 50.14  tribal governments, and community clinics.  Applicants must 
 50.15  submit proposals to the commissioner.  A proposal must specify 
 50.16  the strategies to be implemented to address one or both of the 
 50.17  priority areas listed in paragraph (a) and must be targeted to 
 50.18  achieve the outcomes established according to subdivision 3. 
 50.19     (d) The commissioner shall give priority to applicants who 
 50.20  demonstrate that their proposed project or initiative: 
 50.21     (1) is supported by the community the applicant will serve; 
 50.22     (2) is research-based or based on promising strategies; 
 50.23     (3) is designed to complement other related community 
 50.24  activities; 
 50.25     (4) utilizes strategies that positively impact both 
 50.26  priority areas; 
 50.27     (5) reflects racially and ethnically appropriate 
 50.28  approaches; and 
 50.29     (6) will be implemented through or with community-based 
 50.30  organizations that reflect the race or ethnicity of the 
 50.31  population to be reached. 
 50.32     Subd. 8.  [COMMUNITY GRANT PROGRAM; OTHER HEALTH 
 50.33  DISPARITIES.] (a) The commissioner shall award grants to 
 50.34  eligible applicants for local or regional projects and 
 50.35  initiatives directed at reducing health disparities in one or 
 50.36  more of the following priority areas: 
 51.1      (1) decreasing racial and ethnic disparities in morbidity 
 51.2   and mortality rates from breast and cervical cancer; 
 51.3      (2) decreasing racial and ethnic disparities in morbidity 
 51.4   and mortality rates from HIV/AIDS and sexually transmitted 
 51.5   infections; 
 51.6      (3) decreasing racial and ethnic disparities in morbidity 
 51.7   and mortality rates from cardiovascular disease; 
 51.8      (4) decreasing racial and ethnic disparities in morbidity 
 51.9   and mortality rates from diabetes; or 
 51.10     (5) decreasing racial and ethnic disparities in morbidity 
 51.11  and mortality rates from accidental injuries or violence. 
 51.12     (b) The commissioner may award up to 20 percent of the 
 51.13  funds available as planning grants.  Planning grants must be 
 51.14  used to address such areas as community assessment, determining 
 51.15  community priority areas, coordination activities, and 
 51.16  development of community supported strategies. 
 51.17     (c) Eligible applicants may include, but are not limited 
 51.18  to, faith-based organizations, social service organizations, 
 51.19  community nonprofit organizations, community health boards, 
 51.20  tribal governments, and community clinics.  Applicants shall 
 51.21  submit proposals to the commissioner.  A proposal must specify 
 51.22  the strategies to be implemented to address one or more of the 
 51.23  priority areas listed in paragraph (a) and must be targeted to 
 51.24  achieve the outcomes established according to subdivision 3. 
 51.25     (d) The commissioner shall give priority to applicants who 
 51.26  demonstrate that their proposed project or initiative: 
 51.27     (1) is supported by the community the applicant will serve; 
 51.28     (2) is research-based or based on promising strategies; 
 51.29     (3) is designed to complement other related community 
 51.30  activities; 
 51.31     (4) utilizes strategies that positively impact more than 
 51.32  one priority area; 
 51.33     (5) reflects racially and ethnically appropriate 
 51.34  approaches; and 
 51.35     (6) will be implemented through or with community-based 
 51.36  organizations that reflect the race or ethnicity of the 
 52.1   population to be reached. 
 52.2      Subd. 9.  [REFUGEE AND IMMIGRANT HEALTH.] (a) The 
 52.3   commissioner shall distribute funds to community health boards 
 52.4   for health screening and follow-up services for tuberculosis for 
 52.5   refugees.  Funds shall be distributed based on the following 
 52.6   formula: 
 52.7      (1) $1,500 per refugee with pulmonary tuberculosis in the 
 52.8   community health board's service area; 
 52.9      (2) $500 per refugee with extrapulmonary tuberculosis in 
 52.10  the community health board's service area; 
 52.11     (3) $500 per month of directly observed therapy provided by 
 52.12  the community health board for each uninsured refugee with 
 52.13  pulmonary or extrapulmonary tuberculosis; and 
 52.14     (4) $50 per refugee in the community health board's service 
 52.15  area. 
 52.16     (b) Payments must be made at the end of each state fiscal 
 52.17  year.  The amount paid per tuberculosis case, per month of 
 52.18  directly observed therapy, and per refugee must be 
 52.19  proportionately increased or decreased to fit the actual amount 
 52.20  appropriated for that fiscal year. 
 52.21     Subd. 10.  [COORDINATION.] The commissioner shall 
 52.22  coordinate the projects and initiatives funded under this 
 52.23  section with other efforts at the local, state, or national 
 52.24  level to avoid duplication and promote complementary efforts. 
 52.25     Subd. 11.  [EVALUATION.] Using the outcomes established 
 52.26  according to subdivision 3, the commissioner shall conduct a 
 52.27  biennial evaluation of the community grant programs under 
 52.28  subdivisions 7 and 8.  Grant recipients shall cooperate with the 
 52.29  commissioner in the evaluation and shall provide the 
 52.30  commissioner with the information needed to conduct the 
 52.31  evaluation. 
 52.32     Subd. 12.  [REPORT.] By January 15, 2002, and January 15 of 
 52.33  each even-numbered year thereafter, the commissioner shall 
 52.34  submit a report to the legislature on the local community 
 52.35  projects and community health board activities funded under this 
 52.36  section.  The report must include information on grant 
 53.1   recipients, activities conducted using grant funds, and 
 53.2   evaluation data and outcome measures if available. 
 53.3      Sec. 47.  Minnesota Statutes 2000, section 145A.15, 
 53.4   subdivision 1, is amended to read: 
 53.5      Subdivision 1.  [ESTABLISHMENT.] (a) The commissioner of 
 53.6   health shall expand the current grant program to fund additional 
 53.7   projects designed to prevent child abuse and neglect and reduce 
 53.8   juvenile delinquency by promoting positive parenting, resiliency 
 53.9   in children, and a healthy beginning for children by providing 
 53.10  early intervention services for families in need.  Grant dollars 
 53.11  shall be available to train paraprofessionals to provide in-home 
 53.12  intervention services and to allow public health nurses to do 
 53.13  case management of services.  The grant program shall provide 
 53.14  early intervention services for families in need and will 
 53.15  include: 
 53.16     (1) expansion of current public health nurse and family 
 53.17  aide home visiting programs and public health home visiting 
 53.18  projects which prevent child abuse and neglect, prevent juvenile 
 53.19  delinquency, and build resiliency in children; 
 53.20     (2) early intervention to promote a healthy and nurturing 
 53.21  beginning; 
 53.22     (3) distribution of educational and public information 
 53.23  programs and materials in hospital maternity divisions, 
 53.24  well-baby clinics, obstetrical clinics, and community clinics; 
 53.25  and 
 53.26     (4) training of home visitors in skills necessary for 
 53.27  comprehensive home visiting which promotes a healthy and 
 53.28  nurturing beginning for the child. 
 53.29     (b) No new grants shall be awarded under this section after 
 53.30  June 30, 2001.  Grant contracts awarded and in effect under this 
 53.31  section as of July 1, 2001, shall continue until their 
 53.32  expiration date. 
 53.33     Sec. 48.  Minnesota Statutes 2000, section 145A.15, is 
 53.34  amended by adding a subdivision to read: 
 53.35     Subd. 5.  [EXPIRATION.] This section expires June 30, 2003. 
 53.36     Sec. 49.  Minnesota Statutes 2000, section 145A.16, 
 54.1   subdivision 1, is amended to read: 
 54.2      Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
 54.3   establish a grant program to fund universally offered home 
 54.4   visiting programs designed to serve all live births in 
 54.5   designated geographic areas.  The commissioner shall designate 
 54.6   the geographic area to be served by each program.  At least one 
 54.7   program must provide home visiting services to families within 
 54.8   the seven-county metropolitan area, and at least one program 
 54.9   must provide home visiting services to families outside the 
 54.10  metropolitan area.  The purpose of the program is to strengthen 
 54.11  families and to promote positive parenting and healthy child 
 54.12  development.  No new grants shall be awarded under this section 
 54.13  after June 30, 2001.  Competitive grant contracts awarded and in 
 54.14  effect under this section as of July 1, 2001, shall expire 
 54.15  December 31, 2003. 
 54.16     Sec. 50.  Minnesota Statutes 2000, section 145A.16, is 
 54.17  amended by adding a subdivision to read: 
 54.18     Subd. 10.  [EXPIRATION.] This section expires December 31, 
 54.19  2003. 
 54.20     Sec. 51.  [145A.17] [FAMILY HOME VISITING PROGRAMS.] 
 54.21     Subdivision 1.  [ESTABLISHMENT; GOALS.] The commissioner 
 54.22  shall establish a program to fund family home visiting programs 
 54.23  designed to foster a healthy beginning for children in families 
 54.24  at or below 200 percent of the federal poverty guidelines, 
 54.25  prevent child abuse and neglect, reduce juvenile delinquency, 
 54.26  promote positive parenting and resiliency in children, and 
 54.27  promote family health and economic self-sufficiency.  A program 
 54.28  funded under this section must serve families at or below 200 
 54.29  percent of the federal poverty guidelines, and other families 
 54.30  determined to be at risk for child abuse, neglect, or juvenile 
 54.31  delinquency.  Programs must give priority for services to 
 54.32  families considered to be in need of services, including but not 
 54.33  limited to families with: 
 54.34     (1) adolescent parents; 
 54.35     (2) a history of alcohol or other drug abuse; 
 54.36     (3) a history of child abuse, domestic abuse, or other 
 55.1   types of violence; 
 55.2      (4) a history of domestic abuse, rape, or other forms of 
 55.3   victimization; 
 55.4      (5) reduced cognitive functioning; 
 55.5      (6) a lack of knowledge of child growth and development 
 55.6   stages; 
 55.7      (7) low resiliency to adversities and environmental 
 55.8   stresses; or 
 55.9      (8) insufficient financial resources to meet family needs. 
 55.10     Subd. 2.  [ALLOCATION OF FUNDS.] The commissioner shall 
 55.11  distribute funds available under this section to community 
 55.12  health boards, as defined in section 145A.02, and to tribal 
 55.13  governments.  Funds shall be distributed to community health 
 55.14  boards as follows:  (1) each community health board shall 
 55.15  receive an allocation of $25,000 per year; and (2) remaining 
 55.16  funds available to community health boards shall be distributed 
 55.17  according to the formula in section 256J.625, subdivision 3.  
 55.18  The commissioner, in consultation with tribal governments, shall 
 55.19  establish a formula for distributing funds to tribal governments.
 55.20     Subd. 3.  [REQUIREMENTS FOR PROGRAMS; PROCESS.] (a) Before 
 55.21  a community health board or tribal government may receive an 
 55.22  allocation under subdivision 2, a community health board or 
 55.23  tribal government must submit a proposal to the commissioner 
 55.24  that includes identification, based on a community assessment, 
 55.25  of the populations at or below 200 percent of the federal 
 55.26  poverty guidelines that will be served and the other populations 
 55.27  that will be served.  Each program that receives funds must: 
 55.28     (1) use either a broad community-based or selective 
 55.29  community-based strategy to provide preventive and early 
 55.30  intervention home visiting services; 
 55.31     (2) offer a home visit by a trained home visitor.  If a 
 55.32  home visit is accepted, the first home visit must occur 
 55.33  prenatally or as soon after birth as possible and must include a 
 55.34  public health nursing assessment by a public health nurse; 
 55.35     (3) offer, at a minimum, information on infant care, child 
 55.36  growth and development, positive parenting, preventing diseases, 
 56.1   preventing exposure to environmental hazards, and support 
 56.2   services available in the community; 
 56.3      (4) provide information on and referrals to health care 
 56.4   services, if needed, including information on health care 
 56.5   coverage for which the child or family may be eligible; and 
 56.6   provide information on preventive services, developmental 
 56.7   assessments, and the availability of public assistance programs 
 56.8   as appropriate; 
 56.9      (5) recruit home visitors who will represent, to the extent 
 56.10  possible, the races, cultures, and languages spoken by families 
 56.11  that may be served; 
 56.12     (6) train and supervise home visitors in accordance with 
 56.13  the requirements established under subdivision 4; 
 56.14     (7) maximize resources and minimize duplication by 
 56.15  coordinating activities with local social and human services 
 56.16  organizations, education organizations, and other appropriate 
 56.17  governmental entities and community-based organizations and 
 56.18  agencies; and 
 56.19     (8) utilize appropriate racial and ethnic approaches to 
 56.20  providing home visiting services. 
 56.21     (b) Funds available under this section shall not be used 
 56.22  for medical services.  The commissioner shall establish an 
 56.23  administrative cost limit for recipients of funds.  The outcome 
 56.24  measures established under subdivision 6 must be specified to 
 56.25  recipients of funds at the time the funds are distributed. 
 56.26     Subd. 4.  [TRAINING.] The commissioner shall establish 
 56.27  training requirements for home visitors and minimum requirements 
 56.28  for supervision by a public health nurse.  The requirements for 
 56.29  nurses must be consistent with chapter 148.  Training must 
 56.30  include child development, positive parenting techniques, and 
 56.31  diverse cultural practices in child rearing and family systems. 
 56.32     Subd. 5.  [TECHNICAL ASSISTANCE.] The commissioner shall 
 56.33  provide administrative and technical assistance to each program, 
 56.34  including assistance in data collection and other activities 
 56.35  related to conducting short- and long-term evaluations of the 
 56.36  programs as required under subdivision 7.  The commissioner may 
 57.1   request research and evaluation support from the University of 
 57.2   Minnesota. 
 57.3      Subd. 6.  [OUTCOME MEASURES.] The commissioner shall 
 57.4   establish outcomes to determine the impact of family home 
 57.5   visiting programs funded under this section on the following 
 57.6   areas: 
 57.7      (1) appropriate utilization of preventive health care; 
 57.8      (2) rates of substantiated child abuse and neglect; 
 57.9      (3) rates of unintentional child injuries; and 
 57.10     (4) any additional qualitative goals and quantitative 
 57.11  measures established by the commissioner. 
 57.12     Subd. 7.  [EVALUATION.] Using the qualitative goals and 
 57.13  quantitative outcome measures established under subdivisions 1 
 57.14  and 6, the commissioner shall conduct ongoing evaluations of the 
 57.15  programs funded under this section.  Community health boards and 
 57.16  tribal governments shall cooperate with the commissioner in the 
 57.17  evaluations and shall provide the commissioner with the 
 57.18  information necessary to conduct the evaluations.  As part of 
 57.19  the ongoing evaluations, the commissioner shall rate the impact 
 57.20  of the programs on the outcome measures listed in subdivision 6, 
 57.21  and shall periodically determine whether home visiting programs 
 57.22  are the best way to achieve the qualitative goals established in 
 57.23  subdivision 1 and by the commissioner.  If the commissioner 
 57.24  determines that home visiting programs are not the best way to 
 57.25  achieve these goals, the commissioner shall provide the 
 57.26  legislature with alternative methods for achieving them. 
 57.27     Subd. 8.  [REPORT.] By January 15, 2002, and January 15 of 
 57.28  each even-numbered year thereafter, the commissioner shall 
 57.29  submit a report to the legislature on the family home visiting 
 57.30  programs funded under this section and on the results of the 
 57.31  evaluations conducted under subdivision 7. 
 57.32     Subd. 9.  [NO SUPPLANTING OF EXISTING FUNDS.] Funding 
 57.33  available under this section may be used only to supplement, not 
 57.34  to replace, nonstate funds being used for home visiting services 
 57.35  as of July 1, 2001. 
 57.36     Sec. 52.  Minnesota Statutes 2000, section 157.16, 
 58.1   subdivision 3, is amended to read: 
 58.2      Subd. 3.  [ESTABLISHMENT FEES; DEFINITIONS.] (a) The 
 58.3   following fees are required for food and beverage service 
 58.4   establishments, hotels, motels, lodging establishments, and 
 58.5   resorts licensed under this chapter.  Food and beverage service 
 58.6   establishments must pay the highest applicable fee under 
 58.7   paragraph (e), clause (1), (2), (3), or (4), and establishments 
 58.8   serving alcohol must pay the highest applicable fee under 
 58.9   paragraph (e), clause (6) or (7).  The license fee for new 
 58.10  operators previously licensed under this chapter for the same 
 58.11  calendar year is one-half of the appropriate annual license fee, 
 58.12  plus any penalty that may be required.  The license fee for 
 58.13  operators opening on or after October 1 is one-half of the 
 58.14  appropriate annual license fee, plus any penalty that may be 
 58.15  required.  The fees in paragraphs (b), (c), and (d) effective 
 58.16  until June 30, 2001, shall be phased up as specified in section 
 58.17  55 to the fee amounts effective beginning July 1, 2004.  
 58.18  Notwithstanding section 16A.1285, in fiscal years 2002, 2003, 
 58.19  and 2004, the commissioner shall regulate food and beverage 
 58.20  service establishments, hotels, motels, lodging establishments, 
 58.21  and resorts with the fees collected for that purpose. 
 58.22     (b) All food and beverage service establishments, except 
 58.23  special event food stands, and all hotels, motels, lodging 
 58.24  establishments, and resorts shall pay an annual base fee of $100 
 58.25  until June 30, 2001.  Effective July 1, 2004, the annual base 
 58.26  fee shall be $145. 
 58.27     (c) A special event food stand shall pay a flat fee of $30 
 58.28  annually until June 30, 2001.  Effective July 1, 2004, the 
 58.29  annual flat fee shall be $35.  "Special event food stand" means 
 58.30  a fee category where food is prepared or served in conjunction 
 58.31  with celebrations, county fairs, or special events from a 
 58.32  special event food stand as defined in section 157.15. 
 58.33     (d) In addition to the base fee in paragraph (b), each food 
 58.34  and beverage service establishment, other than a special event 
 58.35  food stand, and each hotel, motel, lodging establishment, and 
 58.36  resort shall pay an additional annual fee for each fee category 
 59.1   as specified in this paragraph: 
 59.2      (1) Limited food menu selection, $30 until June 30, 2001.  
 59.3   Effective July 1, 2004, the annual fee shall be $40.  "Limited 
 59.4   food menu selection" means a fee category that provides one or 
 59.5   more of the following: 
 59.6      (i) prepackaged food that receives heat treatment and is 
 59.7   served in the package; 
 59.8      (ii) frozen pizza that is heated and served; 
 59.9      (iii) a continental breakfast such as rolls, coffee, juice, 
 59.10  milk, and cold cereal; 
 59.11     (iv) soft drinks, coffee, or nonalcoholic beverages; or 
 59.12     (v) cleaning for eating, drinking, or cooking utensils, 
 59.13  when the only food served is prepared off site. 
 59.14     (2) Small establishment, including boarding establishments, 
 59.15  $55 until June 30, 2001.  Effective July 1, 2004, the annual fee 
 59.16  shall be $75.  "Small establishment" means a fee category that 
 59.17  has no salad bar and meets one or more of the following: 
 59.18     (i) possesses food service equipment that consists of no 
 59.19  more than a deep fat fryer, a grill, two hot holding containers, 
 59.20  and one or more microwave ovens; 
 59.21     (ii) serves dipped ice cream or soft serve frozen desserts; 
 59.22     (iii) serves breakfast in an owner-occupied bed and 
 59.23  breakfast establishment; 
 59.24     (iv) is a boarding establishment; or 
 59.25     (v) meets the equipment criteria in clause (3), item (i) or 
 59.26  (ii), and has a maximum patron seating capacity of not more than 
 59.27  50.  
 59.28     (3) Medium establishment, $150 until June 30, 2001.  
 59.29  Effective July 1, 2004, the annual fee shall be $210.  "Medium 
 59.30  establishment" means a fee category that meets one or more of 
 59.31  the following: 
 59.32     (i) possesses food service equipment that includes a range, 
 59.33  oven, steam table, salad bar, or salad preparation area; 
 59.34     (ii) possesses food service equipment that includes more 
 59.35  than one deep fat fryer, one grill, or two hot holding 
 59.36  containers; or 
 60.1      (iii) is an establishment where food is prepared at one 
 60.2   location and served at one or more separate locations. 
 60.3      Establishments meeting criteria in clause (2), item (v), 
 60.4   are not included in this fee category.  
 60.5      (4) Large establishment, $250 until June 30, 2001.  
 60.6   Effective July 1, 2004, the annual fee shall be $350.  "Large 
 60.7   establishment" means either: 
 60.8      (i) a fee category that (A) meets the criteria in clause 
 60.9   (3), items (i) or (ii), for a medium establishment, (B) seats 
 60.10  more than 175 people, and (C) offers the full menu selection an 
 60.11  average of five or more days a week during the weeks of 
 60.12  operation; or 
 60.13     (ii) a fee category that (A) meets the criteria in clause 
 60.14  (3), item (iii), for a medium establishment, and (B) prepares 
 60.15  and serves 500 or more meals per day. 
 60.16     (5) Other food and beverage service, including food carts, 
 60.17  mobile food units, seasonal temporary food stands, and seasonal 
 60.18  permanent food stands, $30 until June 30, 2001.  Effective July 
 60.19  1, 2004, the annual fee shall be $40. 
 60.20     (6) Beer or wine table service, $30 until June 30, 2001.  
 60.21  Effective July 1, 2004, the annual fee shall be $40.  "Beer or 
 60.22  wine table service" means a fee category where the only 
 60.23  alcoholic beverage service is beer or wine, served to customers 
 60.24  seated at tables. 
 60.25     (7) Alcoholic beverage service, other than beer or wine 
 60.26  table service, $75 until June 30, 2001.  Effective July 1, 2004, 
 60.27  the annual fee shall be $105. 
 60.28     "Alcohol beverage service, other than beer or wine table 
 60.29  service" means a fee category where alcoholic mixed drinks are 
 60.30  served or where beer or wine are served from a bar. 
 60.31     (8) Until June 30, 2001, lodging per sleeping accommodation 
 60.32  unit, $4, including hotels, motels, lodging establishments, and 
 60.33  resorts, up to a maximum of $400.  Effective July 1, 2004, 
 60.34  lodging per sleeping accommodation unit, $6, including hotels, 
 60.35  motels, lodging establishments, and resorts, up to a maximum of 
 60.36  $600.  "Lodging per sleeping accommodation unit" means a fee 
 61.1   category including the number of guest rooms, cottages, or other 
 61.2   rental units of a hotel, motel, lodging establishment, or 
 61.3   resort; or the number of beds in a dormitory. 
 61.4      (9) First public swimming pool, $100 until June 30, 2001; 
 61.5   each additional public swimming pool, $50 until June 30, 2001.  
 61.6   Effective July 1, 2004, first public swimming pool, $140; each 
 61.7   additional public swimming pool, $80.  "Public swimming pool" 
 61.8   means a fee category that has the meaning given in Minnesota 
 61.9   Rules, part 4717.0250, subpart 8. 
 61.10     (10) First spa, $50 until June 30, 2001; each additional 
 61.11  spa, $25 until June 30, 2001.  Effective July 1, 2004, first 
 61.12  spa, $80; each additional spa, $40.  "Spa pool" means a fee 
 61.13  category that has the meaning given in Minnesota Rules, part 
 61.14  4717.0250, subpart 9. 
 61.15     (11) Private sewer or water, $30 until June 30, 2001.  
 61.16  Effective July 1, 2004, private sewer or water, $40.  
 61.17  "Individual private water" means a fee category with a water 
 61.18  supply other than a community public water supply as defined in 
 61.19  Minnesota Rules, chapter 4720.  "Individual private sewer" means 
 61.20  a fee category with an individual sewage treatment system which 
 61.21  uses subsurface treatment and disposal. 
 61.22     (e) A fee is not required for a food and beverage service 
 61.23  establishment operated by a school as defined in sections 
 61.24  120A.05, subdivisions 9, 11, 13, and 17 and 120A.22. 
 61.25     (f) A fee of $150 for review of the construction plans must 
 61.26  accompany the initial license application for food and beverage 
 61.27  service establishments, hotels, motels, lodging establishments, 
 61.28  or resorts. 
 61.29     (g) (f) When existing food and beverage service 
 61.30  establishments, hotels, motels, lodging establishments, or 
 61.31  resorts are extensively remodeled, a fee of $150 must be 
 61.32  submitted with the remodeling plans. 
 61.33     (h) (g) Seasonal temporary food stands and special event 
 61.34  food stands are not required to submit construction or 
 61.35  remodeling plans for review. 
 61.36     Sec. 53.  Minnesota Statutes 2000, section 157.22, is 
 62.1   amended to read: 
 62.2      157.22 [EXEMPTIONS.] 
 62.3      This chapter shall not be construed to apply to: 
 62.4      (1) interstate carriers under the supervision of the United 
 62.5   States Department of Health and Human Services; 
 62.6      (2) any building constructed and primarily used for 
 62.7   religious worship; 
 62.8      (3) any building owned, operated, and used by a college or 
 62.9   university in accordance with health regulations promulgated by 
 62.10  the college or university under chapter 14; 
 62.11     (4) any person, firm, or corporation whose principal mode 
 62.12  of business is licensed under sections 28A.04 and 28A.05, is 
 62.13  exempt at that premises from licensure as a food or beverage 
 62.14  establishment; provided that the holding of any license pursuant 
 62.15  to sections 28A.04 and 28A.05 shall not exempt any person, firm, 
 62.16  or corporation from the applicable provisions of this chapter or 
 62.17  the rules of the state commissioner of health relating to food 
 62.18  and beverage service establishments; 
 62.19     (5) family day care homes and group family day care homes 
 62.20  governed by sections 245A.01 to 245A.16; 
 62.21     (6) nonprofit senior citizen centers for the sale of 
 62.22  home-baked goods; and 
 62.23     (7) food not prepared at an establishment and brought in by 
 62.24  individuals attending a potluck event for consumption at the 
 62.25  potluck event.  An organization sponsoring a potluck event under 
 62.26  this clause may advertise the potluck event to the public 
 62.27  through any means.  Individuals who are not members of an 
 62.28  organization sponsoring a potluck event under this clause may 
 62.29  attend the potluck event and consume the food at the event.  
 62.30  Licensed food establishments cannot be sponsors of potluck 
 62.31  events.  Potluck event food shall not be brought into a licensed 
 62.32  food establishment kitchen; and 
 62.33     (8) a home school in which a child is provided instruction 
 62.34  at home. 
 62.35     Sec. 54.  [ESTABLISHMENT FEES DURING TRANSITION PERIOD.] 
 62.36     For fiscal years 2002, 2003, and 2004, the following fees 
 63.1   shall apply to food and beverage service establishments, hotels, 
 63.2   motels, lodging establishments, and resorts for which fees are 
 63.3   established under Minnesota Statutes, section 157.16, 
 63.4   subdivision 3, paragraphs (b), (c), and (d): 
 63.5                           Fiscal Year   Fiscal Year   Fiscal Year
 63.6   Fee Category                2002          2003          2004
 63.7   Annual base fee, all      $111.25       $122.50       $133.75
 63.8   food and beverage
 63.9   service establishments
 63.10  except special event
 63.11  food stands and all
 63.12  hotels, motels, lodging
 63.13  establishments, and
 63.14  resorts
 63.15  Special event food        $ 31.25       $ 32.50       $ 33.75
 63.16  stand
 63.17  Establishment with        $ 32.50       $ 35.00       $ 37.50
 63.18  limited food menu
 63.19  selection
 63.20  Small establishment       $ 60.00       $ 65.00       $ 70.00
 63.21  Medium establishment      $165.00       $180.00       $195.00
 63.22  Large establishment       $275.00       $300.00       $325.00
 63.23  Other food and            $ 32.50       $ 35.00       $ 37.50
 63.24  beverage service
 63.25  Beer or wine table        $ 32.50       $ 35.00       $ 37.50
 63.26  service
 63.27  Alcoholic beverage        $ 82.50       $ 90.00       $ 97.50
 63.28  service other than
 63.29  beer or wine table
 63.30  service
 63.31  Lodging per sleeping    $4.50 per     $5.00 per     $5.50 per
 63.32  accommodation unit,    unit, $450    unit, $500    unit, $550
 63.33  up to a specified         maximum       maximum       maximum
 63.34  maximum
 63.35  First public              $110.00       $120.00       $130.00
 63.36  swimming pool
 64.1   Each additional           $ 57.50       $ 65.00       $ 72.50
 64.2   public swimming pool
 64.3   First spa                 $ 57.50       $ 65.00       $ 72.50
 64.4   Each additional spa       $ 28.75       $ 32.50       $ 36.25
 64.5   Private sewer or          $ 32.50       $ 35.00       $ 37.50
 64.6   water
 64.7      Sec. 55.  [REPEALER.] 
 64.8      (a) Minnesota Statutes 2000, sections 145.882, subdivisions 
 64.9   3 and 4; and 145.927, are repealed. 
 64.10     (b) Minnesota Statutes 2000, section 144.148, subdivision 
 64.11  8, is repealed. 
 64.12     <b>[EFFECTIVE DATE.]</b> Paragraph (b) of this section is 
 64.13  effective the day following final enactment. 
 64.14                             ARTICLE 2 
 64.15                            HEALTH CARE 
 64.16     Section 1.  Minnesota Statutes 2000, section 256.01, 
 64.17  subdivision 2, is amended to read: 
 64.18     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
 64.19  section 241.021, subdivision 2, the commissioner of human 
 64.20  services shall: 
 64.21     (1) Administer and supervise all forms of public assistance 
 64.22  provided for by state law and other welfare activities or 
 64.23  services as are vested in the commissioner.  Administration and 
 64.24  supervision of human services activities or services includes, 
 64.25  but is not limited to, assuring timely and accurate distribution 
 64.26  of benefits, completeness of service, and quality program 
 64.27  management.  In addition to administering and supervising human 
 64.28  services activities vested by law in the department, the 
 64.29  commissioner shall have the authority to: 
 64.30     (a) require county agency participation in training and 
 64.31  technical assistance programs to promote compliance with 
 64.32  statutes, rules, federal laws, regulations, and policies 
 64.33  governing human services; 
 64.34     (b) monitor, on an ongoing basis, the performance of county 
 64.35  agencies in the operation and administration of human services, 
 64.36  enforce compliance with statutes, rules, federal laws, 
 65.1   regulations, and policies governing welfare services and promote 
 65.2   excellence of administration and program operation; 
 65.3      (c) develop a quality control program or other monitoring 
 65.4   program to review county performance and accuracy of benefit 
 65.5   determinations; 
 65.6      (d) require county agencies to make an adjustment to the 
 65.7   public assistance benefits issued to any individual consistent 
 65.8   with federal law and regulation and state law and rule and to 
 65.9   issue or recover benefits as appropriate; 
 65.10     (e) delay or deny payment of all or part of the state and 
 65.11  federal share of benefits and administrative reimbursement 
 65.12  according to the procedures set forth in section 256.017; 
 65.13     (f) make contracts with and grants to public and private 
 65.14  agencies and organizations, both profit and nonprofit, and 
 65.15  individuals, using appropriated funds; and 
 65.16     (g) enter into contractual agreements with federally 
 65.17  recognized Indian tribes with a reservation in Minnesota to the 
 65.18  extent necessary for the tribe to operate a federally approved 
 65.19  family assistance program or any other program under the 
 65.20  supervision of the commissioner.  The commissioner shall consult 
 65.21  with the affected county or counties in the contractual 
 65.22  agreement negotiations, if the county or counties wish to be 
 65.23  included, in order to avoid the duplication of county and tribal 
 65.24  assistance program services.  The commissioner may establish 
 65.25  necessary accounts for the purposes of receiving and disbursing 
 65.26  funds as necessary for the operation of the programs. 
 65.27     (2) Inform county agencies, on a timely basis, of changes 
 65.28  in statute, rule, federal law, regulation, and policy necessary 
 65.29  to county agency administration of the programs. 
 65.30     (3) Administer and supervise all child welfare activities; 
 65.31  promote the enforcement of laws protecting handicapped, 
 65.32  dependent, neglected and delinquent children, and children born 
 65.33  to mothers who were not married to the children's fathers at the 
 65.34  times of the conception nor at the births of the children; 
 65.35  license and supervise child-caring and child-placing agencies 
 65.36  and institutions; supervise the care of children in boarding and 
 66.1   foster homes or in private institutions; and generally perform 
 66.2   all functions relating to the field of child welfare now vested 
 66.3   in the state board of control. 
 66.4      (4) Administer and supervise all noninstitutional service 
 66.5   to handicapped persons, including those who are visually 
 66.6   impaired, hearing impaired, or physically impaired or otherwise 
 66.7   handicapped.  The commissioner may provide and contract for the 
 66.8   care and treatment of qualified indigent children in facilities 
 66.9   other than those located and available at state hospitals when 
 66.10  it is not feasible to provide the service in state hospitals. 
 66.11     (5) Assist and actively cooperate with other departments, 
 66.12  agencies and institutions, local, state, and federal, by 
 66.13  performing services in conformity with the purposes of Laws 
 66.14  1939, chapter 431. 
 66.15     (6) Act as the agent of and cooperate with the federal 
 66.16  government in matters of mutual concern relative to and in 
 66.17  conformity with the provisions of Laws 1939, chapter 431, 
 66.18  including the administration of any federal funds granted to the 
 66.19  state to aid in the performance of any functions of the 
 66.20  commissioner as specified in Laws 1939, chapter 431, and 
 66.21  including the promulgation of rules making uniformly available 
 66.22  medical care benefits to all recipients of public assistance, at 
 66.23  such times as the federal government increases its participation 
 66.24  in assistance expenditures for medical care to recipients of 
 66.25  public assistance, the cost thereof to be borne in the same 
 66.26  proportion as are grants of aid to said recipients. 
 66.27     (7) Establish and maintain any administrative units 
 66.28  reasonably necessary for the performance of administrative 
 66.29  functions common to all divisions of the department. 
 66.30     (8) Act as designated guardian of both the estate and the 
 66.31  person of all the wards of the state of Minnesota, whether by 
 66.32  operation of law or by an order of court, without any further 
 66.33  act or proceeding whatever, except as to persons committed as 
 66.34  mentally retarded.  For children under the guardianship of the 
 66.35  commissioner whose interests would be best served by adoptive 
 66.36  placement, the commissioner may contract with a licensed 
 67.1   child-placing agency to provide adoption services.  A contract 
 67.2   with a licensed child-placing agency must be designed to 
 67.3   supplement existing county efforts and may not replace existing 
 67.4   county programs, unless the replacement is agreed to by the 
 67.5   county board and the appropriate exclusive bargaining 
 67.6   representative or the commissioner has evidence that child 
 67.7   placements of the county continue to be substantially below that 
 67.8   of other counties.  Funds encumbered and obligated under an 
 67.9   agreement for a specific child shall remain available until the 
 67.10  terms of the agreement are fulfilled or the agreement is 
 67.11  terminated. 
 67.12     (9) Act as coordinating referral and informational center 
 67.13  on requests for service for newly arrived immigrants coming to 
 67.14  Minnesota. 
 67.15     (10) The specific enumeration of powers and duties as 
 67.16  hereinabove set forth shall in no way be construed to be a 
 67.17  limitation upon the general transfer of powers herein contained. 
 67.18     (11) Establish county, regional, or statewide schedules of 
 67.19  maximum fees and charges which may be paid by county agencies 
 67.20  for medical, dental, surgical, hospital, nursing and nursing 
 67.21  home care and medicine and medical supplies under all programs 
 67.22  of medical care provided by the state and for congregate living 
 67.23  care under the income maintenance programs. 
 67.24     (12) Have the authority to conduct and administer 
 67.25  experimental projects to test methods and procedures of 
 67.26  administering assistance and services to recipients or potential 
 67.27  recipients of public welfare.  To carry out such experimental 
 67.28  projects, it is further provided that the commissioner of human 
 67.29  services is authorized to waive the enforcement of existing 
 67.30  specific statutory program requirements, rules, and standards in 
 67.31  one or more counties.  The order establishing the waiver shall 
 67.32  provide alternative methods and procedures of administration, 
 67.33  shall not be in conflict with the basic purposes, coverage, or 
 67.34  benefits provided by law, and in no event shall the duration of 
 67.35  a project exceed four years.  It is further provided that no 
 67.36  order establishing an experimental project as authorized by the 
 68.1   provisions of this section shall become effective until the 
 68.2   following conditions have been met: 
 68.3      (a) The secretary of health and human services of the 
 68.4   United States has agreed, for the same project, to waive state 
 68.5   plan requirements relative to statewide uniformity. 
 68.6      (b) A comprehensive plan, including estimated project 
 68.7   costs, shall be approved by the legislative advisory commission 
 68.8   and filed with the commissioner of administration.  
 68.9      (13) According to federal requirements, establish 
 68.10  procedures to be followed by local welfare boards in creating 
 68.11  citizen advisory committees, including procedures for selection 
 68.12  of committee members. 
 68.13     (14) Allocate federal fiscal disallowances or sanctions 
 68.14  which are based on quality control error rates for the aid to 
 68.15  families with dependent children program formerly codified in 
 68.16  sections 256.72 to 256.87, medical assistance, or food stamp 
 68.17  program in the following manner:  
 68.18     (a) One-half of the total amount of the disallowance shall 
 68.19  be borne by the county boards responsible for administering the 
 68.20  programs.  For the medical assistance and the AFDC program 
 68.21  formerly codified in sections 256.72 to 256.87, disallowances 
 68.22  shall be shared by each county board in the same proportion as 
 68.23  that county's expenditures for the sanctioned program are to the 
 68.24  total of all counties' expenditures for the AFDC program 
 68.25  formerly codified in sections 256.72 to 256.87, and medical 
 68.26  assistance programs.  For the food stamp program, sanctions 
 68.27  shall be shared by each county board, with 50 percent of the 
 68.28  sanction being distributed to each county in the same proportion 
 68.29  as that county's administrative costs for food stamps are to the 
 68.30  total of all food stamp administrative costs for all counties, 
 68.31  and 50 percent of the sanctions being distributed to each county 
 68.32  in the same proportion as that county's value of food stamp 
 68.33  benefits issued are to the total of all benefits issued for all 
 68.34  counties.  Each county shall pay its share of the disallowance 
 68.35  to the state of Minnesota.  When a county fails to pay the 
 68.36  amount due hereunder, the commissioner may deduct the amount 
 69.1   from reimbursement otherwise due the county, or the attorney 
 69.2   general, upon the request of the commissioner, may institute 
 69.3   civil action to recover the amount due. 
 69.4      (b) Notwithstanding the provisions of paragraph (a), if the 
 69.5   disallowance results from knowing noncompliance by one or more 
 69.6   counties with a specific program instruction, and that knowing 
 69.7   noncompliance is a matter of official county board record, the 
 69.8   commissioner may require payment or recover from the county or 
 69.9   counties, in the manner prescribed in paragraph (a), an amount 
 69.10  equal to the portion of the total disallowance which resulted 
 69.11  from the noncompliance, and may distribute the balance of the 
 69.12  disallowance according to paragraph (a).  
 69.13     (15) Develop and implement special projects that maximize 
 69.14  reimbursements and result in the recovery of money to the 
 69.15  state.  For the purpose of recovering state money, the 
 69.16  commissioner may enter into contracts with third parties.  Any 
 69.17  recoveries that result from projects or contracts entered into 
 69.18  under this paragraph shall be deposited in the state treasury 
 69.19  and credited to a special account until the balance in the 
 69.20  account reaches $1,000,000.  When the balance in the account 
 69.21  exceeds $1,000,000, the excess shall be transferred and credited 
 69.22  to the general fund.  All money in the account is appropriated 
 69.23  to the commissioner for the purposes of this paragraph. 
 69.24     (16) Have the authority to make direct payments to 
 69.25  facilities providing shelter to women and their children 
 69.26  according to section 256D.05, subdivision 3.  Upon the written 
 69.27  request of a shelter facility that has been denied payments 
 69.28  under section 256D.05, subdivision 3, the commissioner shall 
 69.29  review all relevant evidence and make a determination within 30 
 69.30  days of the request for review regarding issuance of direct 
 69.31  payments to the shelter facility.  Failure to act within 30 days 
 69.32  shall be considered a determination not to issue direct payments.
 69.33     (17) Have the authority to establish and enforce the 
 69.34  following county reporting requirements:  
 69.35     (a) The commissioner shall establish fiscal and statistical 
 69.36  reporting requirements necessary to account for the expenditure 
 70.1   of funds allocated to counties for human services programs.  
 70.2   When establishing financial and statistical reporting 
 70.3   requirements, the commissioner shall evaluate all reports, in 
 70.4   consultation with the counties, to determine if the reports can 
 70.5   be simplified or the number of reports can be reduced. 
 70.6      (b) The county board shall submit monthly or quarterly 
 70.7   reports to the department as required by the commissioner.  
 70.8   Monthly reports are due no later than 15 working days after the 
 70.9   end of the month.  Quarterly reports are due no later than 30 
 70.10  calendar days after the end of the quarter, unless the 
 70.11  commissioner determines that the deadline must be shortened to 
 70.12  20 calendar days to avoid jeopardizing compliance with federal 
 70.13  deadlines or risking a loss of federal funding.  Only reports 
 70.14  that are complete, legible, and in the required format shall be 
 70.15  accepted by the commissioner.  
 70.16     (c) If the required reports are not received by the 
 70.17  deadlines established in clause (b), the commissioner may delay 
 70.18  payments and withhold funds from the county board until the next 
 70.19  reporting period.  When the report is needed to account for the 
 70.20  use of federal funds and the late report results in a reduction 
 70.21  in federal funding, the commissioner shall withhold from the 
 70.22  county boards with late reports an amount equal to the reduction 
 70.23  in federal funding until full federal funding is received.  
 70.24     (d) A county board that submits reports that are late, 
 70.25  illegible, incomplete, or not in the required format for two out 
 70.26  of three consecutive reporting periods is considered 
 70.27  noncompliant.  When a county board is found to be noncompliant, 
 70.28  the commissioner shall notify the county board of the reason the 
 70.29  county board is considered noncompliant and request that the 
 70.30  county board develop a corrective action plan stating how the 
 70.31  county board plans to correct the problem.  The corrective 
 70.32  action plan must be submitted to the commissioner within 45 days 
 70.33  after the date the county board received notice of noncompliance.
 70.34     (e) The final deadline for fiscal reports or amendments to 
 70.35  fiscal reports is one year after the date the report was 
 70.36  originally due.  If the commissioner does not receive a report 
 71.1   by the final deadline, the county board forfeits the funding 
 71.2   associated with the report for that reporting period and the 
 71.3   county board must repay any funds associated with the report 
 71.4   received for that reporting period. 
 71.5      (f) The commissioner may not delay payments, withhold 
 71.6   funds, or require repayment under paragraph (c) or (e) if the 
 71.7   county demonstrates that the commissioner failed to provide 
 71.8   appropriate forms, guidelines, and technical assistance to 
 71.9   enable the county to comply with the requirements.  If the 
 71.10  county board disagrees with an action taken by the commissioner 
 71.11  under paragraph (c) or (e), the county board may appeal the 
 71.12  action according to sections 14.57 to 14.69. 
 71.13     (g) Counties subject to withholding of funds under 
 71.14  paragraph (c) or forfeiture or repayment of funds under 
 71.15  paragraph (e) shall not reduce or withhold benefits or services 
 71.16  to clients to cover costs incurred due to actions taken by the 
 71.17  commissioner under paragraph (c) or (e). 
 71.18     (18) Allocate federal fiscal disallowances or sanctions for 
 71.19  audit exceptions when federal fiscal disallowances or sanctions 
 71.20  are based on a statewide random sample for the foster care 
 71.21  program under title IV-E of the Social Security Act, United 
 71.22  States Code, title 42, in direct proportion to each county's 
 71.23  title IV-E foster care maintenance claim for that period. 
 71.24     (19) Be responsible for ensuring the detection, prevention, 
 71.25  investigation, and resolution of fraudulent activities or 
 71.26  behavior by applicants, recipients, and other participants in 
 71.27  the human services programs administered by the department. 
 71.28     (20) Require county agencies to identify overpayments, 
 71.29  establish claims, and utilize all available and cost-beneficial 
 71.30  methodologies to collect and recover these overpayments in the 
 71.31  human services programs administered by the department. 
 71.32     (21) Have the authority to administer a drug rebate program 
 71.33  for drugs purchased pursuant to the prescription drug program 
 71.34  established under section 256.955 after the beneficiary's 
 71.35  satisfaction of any deductible established in the program.  The 
 71.36  commissioner shall require a rebate agreement from all 
 72.1   manufacturers of covered drugs as defined in section 256B.0625, 
 72.2   subdivision 13.  Rebate agreements for prescription drugs 
 72.3   delivered on or after July 1, 2002, must include rebates for 
 72.4   individuals covered under the prescription drug program who are 
 72.5   under 65 years of age.  For each drug, the amount of the rebate 
 72.6   shall be equal to the basic rebate as defined for purposes of 
 72.7   the federal rebate program in United States Code, title 42, 
 72.8   section 1396r-8(c)(1).  This basic rebate shall be applied to 
 72.9   single-source and multiple-source drugs.  The manufacturers must 
 72.10  provide full payment within 30 days of receipt of the state 
 72.11  invoice for the rebate within the terms and conditions used for 
 72.12  the federal rebate program established pursuant to section 1927 
 72.13  of title XIX of the Social Security Act.  The manufacturers must 
 72.14  provide the commissioner with any information necessary to 
 72.15  verify the rebate determined per drug.  The rebate program shall 
 72.16  utilize the terms and conditions used for the federal rebate 
 72.17  program established pursuant to section 1927 of title XIX of the 
 72.18  Social Security Act. 
 72.19     (22) Have the authority to administer the federal drug 
 72.20  rebate program for drugs purchased under the medical assistance 
 72.21  program as allowed by section 1927 of title XIX of the Social 
 72.22  Security Act and according to the terms and conditions of 
 72.23  section 1927.  Rebates shall be collected for all drugs that 
 72.24  have been dispensed or administered in an outpatient setting and 
 72.25  that are from manufacturers who have signed a rebate agreement 
 72.26  with the United States Department of Health and Human Services. 
 72.27     (22) (23) Operate the department's communication systems 
 72.28  account established in Laws 1993, First Special Session chapter 
 72.29  1, article 1, section 2, subdivision 2, to manage shared 
 72.30  communication costs necessary for the operation of the programs 
 72.31  the commissioner supervises.  A communications account may also 
 72.32  be established for each regional treatment center which operates 
 72.33  communications systems.  Each account must be used to manage 
 72.34  shared communication costs necessary for the operations of the 
 72.35  programs the commissioner supervises.  The commissioner may 
 72.36  distribute the costs of operating and maintaining communication 
 73.1   systems to participants in a manner that reflects actual usage. 
 73.2   Costs may include acquisition, licensing, insurance, 
 73.3   maintenance, repair, staff time and other costs as determined by 
 73.4   the commissioner.  Nonprofit organizations and state, county, 
 73.5   and local government agencies involved in the operation of 
 73.6   programs the commissioner supervises may participate in the use 
 73.7   of the department's communications technology and share in the 
 73.8   cost of operation.  The commissioner may accept on behalf of the 
 73.9   state any gift, bequest, devise or personal property of any 
 73.10  kind, or money tendered to the state for any lawful purpose 
 73.11  pertaining to the communication activities of the department.  
 73.12  Any money received for this purpose must be deposited in the 
 73.13  department's communication systems accounts.  Money collected by 
 73.14  the commissioner for the use of communication systems must be 
 73.15  deposited in the state communication systems account and is 
 73.16  appropriated to the commissioner for purposes of this section. 
 73.17     (23) (24) Receive any federal matching money that is made 
 73.18  available through the medical assistance program for the 
 73.19  consumer satisfaction survey.  Any federal money received for 
 73.20  the survey is appropriated to the commissioner for this 
 73.21  purpose.  The commissioner may expend the federal money received 
 73.22  for the consumer satisfaction survey in either year of the 
 73.23  biennium. 
 73.24     (24) (25) Incorporate cost reimbursement claims from First 
 73.25  Call Minnesota into the federal cost reimbursement claiming 
 73.26  processes of the department according to federal law, rule, and 
 73.27  regulations.  Any reimbursement received is appropriated to the 
 73.28  commissioner and shall be disbursed to First Call Minnesota 
 73.29  according to normal department payment schedules. 
 73.30     (25) (26) Develop recommended standards for foster care 
 73.31  homes that address the components of specialized therapeutic 
 73.32  services to be provided by foster care homes with those services.
 73.33     Sec. 2.  Minnesota Statutes 2000, section 256.955, 
 73.34  subdivision 2b, is amended to read: 
 73.35     Subd. 2b.  [ELIGIBILITY.] Effective July 1, 2002, an 
 73.36  individual satisfying the following requirements and the 
 74.1   requirements described in subdivision 2, paragraph (d), is 
 74.2   eligible for the prescription drug program: 
 74.3      (1) is under 65 years of age; and 
 74.4      (2) is eligible as a qualified Medicare beneficiary 
 74.5   according to section 256B.057, subdivision 3 or 3a, or is 
 74.6   eligible under section 256B.057, subdivision 3 or 3a, and is 
 74.7   also eligible for medical assistance or general assistance 
 74.8   medical care with a spenddown as defined in section 256B.056, 
 74.9   subdivision 5. 
 74.10     Sec. 3.  [256.958] [RETIRED DENTIST PROGRAM.] 
 74.11     Subdivision 1.  [PROGRAM.] The commissioner of human 
 74.12  services shall establish a program to reimburse a retired 
 74.13  dentist for the dentist's license fee and for the cost of 
 74.14  malpractice insurance in exchange for the dentist providing 100 
 74.15  hours of dental services on a volunteer basis within a 12-month 
 74.16  period at a community dental clinic or a dental training clinic 
 74.17  located at a Minnesota state college or university.  
 74.18     Subd. 2.  [DOCUMENTATION.] Upon completion of the required 
 74.19  hours, the retired dentist shall submit to the commissioner the 
 74.20  following: 
 74.21     (1) documentation of service provided; 
 74.22     (2) the cost of malpractice insurance for the 12-month 
 74.23  period; and 
 74.24     (3) the cost of the license.  
 74.25     Subd. 3.  [REIMBURSEMENT.] Upon receipt of the information 
 74.26  described in subdivision 2, the commissioner shall provide 
 74.27  reimbursement to the retired dentist for the cost of malpractice 
 74.28  insurance for the previous 12-month period and the cost of the 
 74.29  license. 
 74.30     Sec. 4.  Minnesota Statutes 2000, section 256.9657, 
 74.31  subdivision 2, is amended to read: 
 74.32     Subd. 2.  [HOSPITAL SURCHARGE.] (a) Effective October 1, 
 74.33  1992, each Minnesota hospital except facilities of the federal 
 74.34  Indian Health Service and regional treatment centers shall pay 
 74.35  to the medical assistance account a surcharge equal to 1.4 
 74.36  percent of net patient revenues excluding net Medicare revenues 
 75.1   reported by that provider to the health care cost information 
 75.2   system according to the schedule in subdivision 4.  
 75.3      (b) Effective July 1, 1994, the surcharge under paragraph 
 75.4   (a) is increased to 1.56 percent. 
 75.5      (c) Notwithstanding the Medicare cost finding and allowable 
 75.6   cost principles, the hospital surcharge is not an allowable cost 
 75.7   for purposes of rate setting under sections 256.9685 to 256.9695.
 75.8      Sec. 5.  Minnesota Statutes 2000, section 256.969, 
 75.9   subdivision 2b, is amended to read: 
 75.10     Subd. 2b.  [OPERATING PAYMENT RATES.] In determining 
 75.11  operating payment rates for admissions occurring on or after the 
 75.12  rate year beginning January 1, 1991, and every two years after, 
 75.13  or more frequently as determined by the commissioner, the 
 75.14  commissioner shall obtain operating data from an updated base 
 75.15  year and, within the limits of available appropriations, 
 75.16  establish operating payment rates per admission for each 
 75.17  hospital based on the cost-finding methods and allowable costs 
 75.18  of the Medicare program in effect during the base year.  Rates 
 75.19  under the general assistance medical care, medical assistance, 
 75.20  and MinnesotaCare programs shall not be rebased to more current 
 75.21  data on January 1, 1997.  The base year operating payment rate 
 75.22  per admission is standardized by the case mix index and adjusted 
 75.23  by the hospital cost index, relative values, and 
 75.24  disproportionate population adjustment.  The cost and charge 
 75.25  data used to establish operating rates shall only reflect 
 75.26  inpatient services covered by medical assistance and shall not 
 75.27  include property cost information and costs recognized in 
 75.28  outlier payments. 
 75.29     Sec. 6.  Minnesota Statutes 2000, section 256.969, is 
 75.30  amended by adding a subdivision to read: 
 75.31     Subd. 26.  [GREATER MINNESOTA PAYMENT ADJUSTMENT AFTER JUNE 
 75.32  30, 2001.] (a) For admissions occurring after June 30, 2001, the 
 75.33  commissioner shall pay all medical assistance inpatient 
 75.34  fee-for-service admissions for the diagnosis-related groups 
 75.35  specified in paragraph (b) at hospitals located outside of the 
 75.36  seven-county metropolitan area at the higher of:  
 76.1      (1) the hospital's current payment rate for the diagnostic 
 76.2   category to which the diagnosis-related group belongs, exclusive 
 76.3   of disproportionate population adjustments received under 
 76.4   subdivision 9 and hospital payment adjustments received under 
 76.5   subdivision 23; or 
 76.6      (2) the rate in clause (1) plus a proportion of the 
 76.7   difference between the current average payment rate for that 
 76.8   diagnostic category for hospitals located within the 
 76.9   seven-county metropolitan area, exclusive of disproportionate 
 76.10  population adjustments received under subdivision 9 and hospital 
 76.11  payment adjustments received under subdivision 23, and the 
 76.12  current rate in clause (1).  This proportion shall be 12.5 
 76.13  percent for the fiscal year beginning July 1, 2001, and shall 
 76.14  increase by 12.5 percentage points for each of the next seven 
 76.15  fiscal years, such that the proportion is 100 percent for the 
 76.16  fiscal year beginning July 1, 2008. 
 76.17     (b) The reimbursement increases provided in paragraph (a) 
 76.18  apply to the following diagnosis-related groups as they fall 
 76.19  within the diagnostic categories: 
 76.20     (1) 370 C-section with complicating diagnosis; 
 76.21     (2) 371 C-section without complicating diagnosis; 
 76.22     (3) 372 vaginal delivery with complicating diagnosis; 
 76.23     (4) 373 vaginal delivery without complicating diagnosis; 
 76.24     (5) 386 extreme immaturity, weight greater than 1,500 
 76.25  grams; 
 76.26     (6) 388 full-term neonates with other problems; 
 76.27     (7) 390 prematurity without major problems; 
 76.28     (8) 391 normal newborn case; 
 76.29     (9) 385 neonate, died or transferred to another health care 
 76.30  facility; 
 76.31     (10) 425 acute adjustment reaction and psychosocial 
 76.32  dysfunctioning; 
 76.33     (11) 430 psychosis; 
 76.34     (12) 431 childhood mental disorders; and 
 76.35     (13) 164-167 appendectomy. 
 76.36     Sec. 7.  Minnesota Statutes 2000, section 256B.04, is 
 77.1   amended by adding a subdivision to read: 
 77.2      Subd. 1b.  [CONTRACT FOR SERVICES FOR AMERICAN INDIAN 
 77.3   CHILDREN.] Notwithstanding subdivision 1, the commissioner may 
 77.4   contract with federally recognized Indian tribes with a 
 77.5   reservation in Minnesota for the provision of early and periodic 
 77.6   screening, diagnosis, and treatment administrative services for 
 77.7   American Indian children, according to Code of Federal 
 77.8   Regulations, title 42, section 441, subpart B, and Minnesota 
 77.9   Rules, part 9505.1693 et seq., when the tribe chooses to provide 
 77.10  such services.  For purposes of this subdivision, "American 
 77.11  Indian" has the meaning given to persons to whom services will 
 77.12  be provided for in Code of Federal Regulations, title 42, 
 77.13  section 36.12.  Notwithstanding Minnesota Rules, part 9505.1748, 
 77.14  subpart 1, the commissioner, the local agency, and the tribe may 
 77.15  contract with any entity for the provision of early and periodic 
 77.16  screening, diagnosis, and treatment administrative services. 
 77.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 77.18  following final enactment. 
 77.19     Sec. 8.  Minnesota Statutes 2000, section 256B.055, 
 77.20  subdivision 3a, is amended to read: 
 77.21     Subd. 3a.  [MFIP-S FAMILIES; FAMILIES ELIGIBLE UNDER PRIOR 
 77.22  AFDC RULES.] (a) Beginning January 1, 1998, or on the date that 
 77.23  MFIP-S is implemented in counties, medical assistance may be 
 77.24  paid for a person receiving public assistance under the MFIP-S 
 77.25  program.  Beginning July 1, 2002, medical assistance may be paid 
 77.26  for a person who would have been eligible, but for excess income 
 77.27  or assets, under the state's AFDC plan in effect as of July 16, 
 77.28  1996, with the base AFDC standard increased according to section 
 77.29  256B.056, subdivision 4.  
 77.30     (b) Beginning January 1, 1998, July 1, 2002, medical 
 77.31  assistance may be paid for a person who would have been eligible 
 77.32  for public assistance under the income and resource assets 
 77.33  standards, or who would have been eligible but for excess income 
 77.34  or assets, under the state's AFDC plan in effect as of July 16, 
 77.35  1996, as required by the Personal Responsibility and Work 
 77.36  Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 
 78.1   Number 104-193 with the base AFDC rate increased according to 
 78.2   section 256B.056, subdivision 4. 
 78.3      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 78.4      Sec. 9.  Minnesota Statutes 2000, section 256B.056, 
 78.5   subdivision 1a, is amended to read: 
 78.6      Subd. 1a.  [INCOME AND ASSETS GENERALLY.] Unless 
 78.7   specifically required by state law or rule or federal law or 
 78.8   regulation, the methodologies used in counting income and assets 
 78.9   to determine eligibility for medical assistance for persons 
 78.10  whose eligibility category is based on blindness, disability, or 
 78.11  age of 65 or more years, the methodologies for the supplemental 
 78.12  security income program shall be used.  Effective upon federal 
 78.13  approval, for children eligible under section 256B.055, 
 78.14  subdivision 12, or for home and community-based waiver services 
 78.15  whose eligibility for medical assistance is determined without 
 78.16  regard to parental income, child support payments, including any 
 78.17  payments made by an obligor in satisfaction of or in addition to 
 78.18  a temporary or permanent order for child support, social 
 78.19  security payments, and other benefits for basic needs are not 
 78.20  counted as income.  For families and children, which includes 
 78.21  all other eligibility categories, the methodologies under the 
 78.22  state's AFDC plan in effect as of July 16, 1996, as required by 
 78.23  the Personal Responsibility and Work Opportunity Reconciliation 
 78.24  Act of 1996 (PRWORA), Public Law Number 104-193, shall be used.  
 78.25  Effective upon federal approval, in-kind contributions to, and 
 78.26  payments made on behalf of, a recipient, by an obligor, in 
 78.27  satisfaction of or in addition to a temporary or permanent order 
 78.28  for child support or maintenance, shall be considered income to 
 78.29  the recipient.  For these purposes, a "methodology" does not 
 78.30  include an asset or income standard, or accounting method, or 
 78.31  method of determining effective dates. 
 78.32     Sec. 10.  Minnesota Statutes 2000, section 256B.056, 
 78.33  subdivision 3, is amended to read: 
 78.34     Subd. 3.  [ASSET LIMITATIONS.] To be eligible for medical 
 78.35  assistance, a person must not individually own more than $3,000 
 78.36  in assets, or if a member of a household with two family 
 79.1   members, husband and wife, or parent and child, the household 
 79.2   must not own more than $6,000 in assets, plus $200 for each 
 79.3   additional legal dependent.  In addition to these maximum 
 79.4   amounts, an eligible individual or family may accrue interest on 
 79.5   these amounts, but they must be reduced to the maximum at the 
 79.6   time of an eligibility redetermination.  The accumulation of the 
 79.7   clothing and personal needs allowance according to section 
 79.8   256B.35 must also be reduced to the maximum at the time of the 
 79.9   eligibility redetermination.  The value of assets that are not 
 79.10  considered in determining eligibility for medical assistance is 
 79.11  the value of those assets excluded under the AFDC state plan as 
 79.12  of July 16, 1996, as required by the Personal Responsibility and 
 79.13  Work Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 
 79.14  Number 104-193, for families and children, and the supplemental 
 79.15  security income program for aged, blind, and disabled persons, 
 79.16  with the following exceptions: 
 79.17     (a) Household goods and personal effects are not considered.
 79.18     (b) Capital and operating assets of a trade or business 
 79.19  that the local agency determines are necessary to the person's 
 79.20  ability to earn an income are not considered. 
 79.21     (c) Motor vehicles are excluded to the same extent excluded 
 79.22  by the supplemental security income program. 
 79.23     (d) Assets designated as burial expenses are excluded to 
 79.24  the same extent excluded by the supplemental security income 
 79.25  program. 
 79.26     (e) Effective upon federal approval, for a person who no 
 79.27  longer qualifies as an employed person with a disability due to 
 79.28  loss of earnings, assets allowed while eligible for medical 
 79.29  assistance under section 256B.057, subdivision 9, are not 
 79.30  considered for 12 months, beginning with the first month of 
 79.31  ineligibility as an employed person with a disability, to the 
 79.32  extent that the person's total assets remain within the allowed 
 79.33  limits of section 256B.057, subdivision 9, paragraph (b). 
 79.34     Sec. 11.  Minnesota Statutes 2000, section 256B.056, 
 79.35  subdivision 4, is amended to read: 
 79.36     Subd. 4.  [INCOME.] (a) To be eligible for medical 
 80.1   assistance, a person eligible under section 256B.055, 
 80.2   subdivision subdivisions 7, 7a, and 12, not receiving 
 80.3   supplemental security income program payments, and may have 
 80.4   income up to the following specified percentages of the federal 
 80.5   poverty guidelines for the family size effective on April 1 of 
 80.6   each year: 
 80.7      (1) 80 percent, effective July 1, 2002; 
 80.8      (2) 90 percent, effective July 1, 2003; 
 80.9      (3) 100 percent, effective July 1, 2004. 
 80.10  Increases in benefits under title II of the Social Security Act 
 80.11  shall not be counted as income for purposes of this subdivision 
 80.12  until the first day of the second full month following 
 80.13  publication of the change in the federal poverty guidelines. 
 80.14     (b) To be eligible for medical assistance, families and 
 80.15  children may have an income up to 133-1/3 percent of the AFDC 
 80.16  income standard in effect under the July 16, 1996, AFDC state 
 80.17  plan.  Effective July 1, 2000, the base AFDC standard in effect 
 80.18  on July 16, 1996, shall be increased by three percent. Effective 
 80.19  January 1, 2000, and each successive January, recipients of 
 80.20  supplemental security income may have an income up to the 
 80.21  supplemental security income standard in effect on that date. 
 80.22     (c) Effective July 1, 2002, to be eligible for medical 
 80.23  assistance, families and children may have an income up to 100 
 80.24  percent of the federal poverty guidelines for the family size 
 80.25  effective on April 1 of each year. 
 80.26     (d) In computing income to determine eligibility of persons 
 80.27  under paragraphs (a) to (c) who are not residents of long-term 
 80.28  care facilities, the commissioner shall disregard increases in 
 80.29  income as required by Public Law Numbers 94-566, section 503; 
 80.30  99-272; and 99-509.  Veterans aid and attendance benefits and 
 80.31  Veterans Administration unusual medical expense payments are 
 80.32  considered income to the recipient. 
 80.33     Sec. 12.  Minnesota Statutes 2000, section 256B.056, 
 80.34  subdivision 5, is amended to read: 
 80.35     Subd. 5.  [EXCESS INCOME.] A person who has excess income 
 80.36  is eligible for medical assistance if the person has expenses 
 81.1   for medical care that are more than the amount of the person's 
 81.2   excess income, computed by deducting incurred medical expenses 
 81.3   from the excess income to reduce the excess to the income 
 81.4   standard specified in subdivision 4, except that if federal 
 81.5   authorization to use the standard in subdivision 4 is not 
 81.6   obtained, the medically needy standard for purposes of a 
 81.7   spenddown shall be 133 and 1/3 percent of the AFDC income 
 81.8   standard in effect under the July 16, 1996, AFDC state plan, 
 81.9   increased by three percent.  The person shall elect to have the 
 81.10  medical expenses deducted at the beginning of a one-month budget 
 81.11  period or at the beginning of a six-month budget period.  The 
 81.12  commissioner shall allow persons eligible for assistance on a 
 81.13  one-month spenddown basis under this subdivision to elect to pay 
 81.14  the monthly spenddown amount in advance of the month of 
 81.15  eligibility to the state agency in order to maintain eligibility 
 81.16  on a continuous basis.  If the recipient does not pay the 
 81.17  spenddown amount on or before the 20th of the month, the 
 81.18  recipient is ineligible for this option for the following 
 81.19  month.  The local agency shall code the Medicaid Management 
 81.20  Information System (MMIS) to indicate that the recipient has 
 81.21  elected this option.  The state agency shall convey recipient 
 81.22  eligibility information relative to the collection of the 
 81.23  spenddown to providers through the Electronic Verification 
 81.24  System (EVS).  A recipient electing advance payment must pay the 
 81.25  state agency the monthly spenddown amount on or before the 20th 
 81.26  of the month in order to be eligible for this option in the 
 81.27  following month.  
 81.28     Sec. 13.  Minnesota Statutes 2000, section 256B.057, 
 81.29  subdivision 9, is amended to read: 
 81.30     Subd. 9.  [EMPLOYED PERSONS WITH DISABILITIES.] (a) Medical 
 81.31  assistance may be paid for a person who is employed and who: 
 81.32     (1) meets the definition of disabled under the supplemental 
 81.33  security income program; 
 81.34     (2) is at least 16 but less than 65 years of age; 
 81.35     (3) meets the asset limits in paragraph (b); and 
 81.36     (4) pays a premium, if required, under paragraph (c).  
 82.1   Any spousal income or assets shall be disregarded for purposes 
 82.2   of eligibility and premium determinations. 
 82.3      (b) For purposes of determining eligibility under this 
 82.4   subdivision, a person's assets must not exceed $20,000, 
 82.5   excluding: 
 82.6      (1) all assets excluded under section 256B.056; 
 82.7      (2) retirement accounts, including individual accounts, 
 82.8   401(k) plans, 403(b) plans, Keogh plans, and pension plans; and 
 82.9      (3) medical expense accounts set up through the person's 
 82.10  employer. 
 82.11     (c) A person whose earned and unearned income is equal to 
 82.12  or greater than 200 100 percent of federal poverty guidelines 
 82.13  for the applicable family size must pay a premium to be eligible 
 82.14  for medical assistance under this subdivision.  The premium 
 82.15  shall be equal to ten percent of based on the person's gross 
 82.16  earned and unearned income above 200 percent of federal poverty 
 82.17  guidelines for and the applicable family size up to the cost of 
 82.18  coverage, using a sliding fee scale established by the 
 82.19  commissioner which begins at one percent of income at 100 
 82.20  percent of the federal poverty guidelines and gradually 
 82.21  increases to 7.5 percent of income for those with incomes at or 
 82.22  above 300 percent of the federal poverty guidelines. 
 82.23     (d) A person's eligibility and premium shall be determined 
 82.24  by the local county agency.  Premiums must be paid to the 
 82.25  commissioner.  All premiums are dedicated to the commissioner. 
 82.26     (e) Any required premium shall be determined at application 
 82.27  and redetermined annually at recertification or when a change in 
 82.28  income or family size occurs. 
 82.29     (f) Premium payment is due upon notification from the 
 82.30  commissioner of the premium amount required.  Premiums may be 
 82.31  paid in installments at the discretion of the commissioner. 
 82.32     (g) Nonpayment of the premium shall result in denial or 
 82.33  termination of medical assistance unless the person demonstrates 
 82.34  good cause for nonpayment.  Good cause exists if the 
 82.35  requirements specified in Minnesota Rules, part 9506.0040, 
 82.36  subpart 7, items B to D, are met.  Nonpayment shall include 
 83.1   payment with a returned, refused, or dishonored instrument.  The 
 83.2   commissioner may require a guaranteed form of payment as the 
 83.3   only means to replace a returned, refused, or dishonored 
 83.4   instrument. 
 83.5      <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
 83.6   2001. 
 83.7      Sec. 14.  Minnesota Statutes 2000, section 256B.057, is 
 83.8   amended by adding a subdivision to read: 
 83.9      Subd. 10.  [CERTAIN PERSONS NEEDING TREATMENT FOR BREAST OR 
 83.10  CERVICAL CANCER.] (a) Medical assistance may be paid for a 
 83.11  person who: 
 83.12     (1) has been screened for breast or cervical cancer by the 
 83.13  Minnesota breast and cervical cancer control program, and 
 83.14  program funds have been used to pay for the person's screening; 
 83.15     (2) according to the person's treating health professional, 
 83.16  needs treatment, including diagnostic services necessary to 
 83.17  determine the extent and proper course of treatment, for breast 
 83.18  or cervical cancer, including precancerous conditions and early 
 83.19  stage cancer; 
 83.20     (3) meets the income eligibility guidelines for the 
 83.21  Minnesota breast and cervical cancer control program; 
 83.22     (4) is under age 65; 
 83.23     (5) is not otherwise eligible for medical assistance under 
 83.24  United States Code, title 42, section 1396(a)(10)(A)(i); and 
 83.25     (6) is not otherwise covered under creditable coverage, as 
 83.26  defined under United States Code, title 42, section 300gg(c). 
 83.27     (b) Medical assistance provided for an eligible person 
 83.28  under this subdivision shall be limited to services provided 
 83.29  during the period that the person receives treatment for breast 
 83.30  or cervical cancer. 
 83.31     (c) A person meeting the criteria in paragraph (a) is 
 83.32  eligible for medical assistance without meeting the eligibility 
 83.33  criteria relating to income and assets in section 256B.056, 
 83.34  subdivisions 1a to 5b. 
 83.35     Sec. 15.  Minnesota Statutes 2000, section 256B.0625, 
 83.36  subdivision 3b, is amended to read: 
 84.1      Subd. 3b.  [TELEMEDICINE CONSULTATIONS.] (a) Medical 
 84.2   assistance covers telemedicine consultations.  Telemedicine 
 84.3   consultations must be made via two-way, interactive video or 
 84.4   store-and-forward technology.  Store-and-forward technology 
 84.5   includes telemedicine consultations that do not occur in real 
 84.6   time via synchronous transmissions, and that do not require a 
 84.7   face-to-face encounter with the patient for all or any part of 
 84.8   any such telemedicine consultation.  The patient record must 
 84.9   include a written opinion from the consulting physician 
 84.10  providing the telemedicine consultation.  A communication 
 84.11  between two physicians that consists solely of a telephone 
 84.12  conversation is not a telemedicine consultation.  Coverage is 
 84.13  limited to three telemedicine consultations per recipient per 
 84.14  calendar week.  Telemedicine consultations shall be paid at the 
 84.15  full allowable rate. 
 84.16     (b) This subdivision expires July 1, 2001.  
 84.17     Sec. 16.  Minnesota Statutes 2000, section 256B.0625, is 
 84.18  amended by adding a subdivision to read: 
 84.19     Subd. 5a.  [INTENSIVE EARLY INTERVENTION BEHAVIOR THERAPY 
 84.20  SERVICES FOR CHILDREN WITH AUTISM SPECTRUM DISORDERS.] (a) 
 84.21  [COVERAGE.] Medical assistance covers home-based intensive early 
 84.22  intervention behavior therapy for children with autism spectrum 
 84.23  disorders.  Children with autism spectrum disorder, and their 
 84.24  custodial parents or foster parents, may access other covered 
 84.25  services to treat autism spectrum disorder, and are not required 
 84.26  to receive intensive early intervention behavior therapy 
 84.27  services under this subdivision.  Intensive early intervention 
 84.28  behavior therapy does not include coverage for services to treat 
 84.29  developmental disorders of language, early onset psychosis, 
 84.30  Rett's disorder, selective mutism, social anxiety disorder, 
 84.31  stereotypic movement disorder, dementia, obsessive compulsive 
 84.32  disorder, schizoid personality disorder, avoidant personality 
 84.33  disorder, or reactive attachment disorder.  If a child with 
 84.34  autism spectrum disorder is diagnosed to have one or more of 
 84.35  these conditions, intensive early intervention behavior therapy 
 84.36  includes coverage only for services necessary to treat the 
 85.1   autism spectrum disorder. 
 85.2      (b) [PURPOSE OF INTENSIVE EARLY INTERVENTION BEHAVIOR 
 85.3   THERAPY SERVICES (IEIBTS).] The purpose of IEIBTS is to improve 
 85.4   the child's behavioral functioning, to prevent development of 
 85.5   challenging behaviors, to eliminate autistic behaviors, to 
 85.6   reduce the risk of out-of-home placement, and to establish 
 85.7   independent typical functioning in language and social 
 85.8   behavior.  The procedures used to accomplish these goals are 
 85.9   based upon research in applied behavior analysis. 
 85.10     (c) [ELIGIBLE CHILDREN.] A child is eligible to initiate 
 85.11  IEIBTS if, the child meets the additional eligibility criteria 
 85.12  in paragraph (d) and in a diagnostic assessment by a mental 
 85.13  health professional who is not under the employ of the service 
 85.14  provider, the child: 
 85.15     (1) is found to have an autism spectrum disorder; 
 85.16     (2) has a current IQ of either untestable, or at least 30; 
 85.17     (3) if nonverbal, initiated behavior therapy by 42 months 
 85.18  of age; 
 85.19     (4) if verbal, initiated behavior therapy by 48 months of 
 85.20  age; or 
 85.21     (5) if having an IQ of at least 50, initiated behavior 
 85.22  therapy by 84 months of age. 
 85.23  To continue in IEIBTS, at least one of the child's custodial 
 85.24  parents or foster parents must participate in an average of at 
 85.25  least five hours of documented behavior therapy per week for six 
 85.26  months, and consistently implement behavior therapy 
 85.27  recommendations 24 hours a day.  To continue after six-month 
 85.28  individualized treatment plan (ITP) reviews, the child must show 
 85.29  documented progress toward mastery of six-month benchmark 
 85.30  behavior objectives.  The maximum number of months during which 
 85.31  services may be billed is 54.  If significant progress towards 
 85.32  treatment goals has not been achieved after 24 months of 
 85.33  treatment, treatment must be discontinued. 
 85.34     (d) [ADDITIONAL ELIGIBLITY CRITERIA.] A child is eligible 
 85.35  to initiate IEIBTS if: 
 85.36     (1) in medical and diagnostic assessments by medical and 
 86.1   mental health professionals, it is determined that the child 
 86.2   does not have severe or profound mental retardation; 
 86.3      (2) an accurate assessment of the child's hearing has been 
 86.4   performed, including audiometry if the brain stem auditory 
 86.5   evokes response; 
 86.6      (3) a blood lead test has been performed prior to 
 86.7   initiation of treatment; and 
 86.8      (4) an EEG or neurologic evaluation is done, prior to 
 86.9   initiation of treatment, if the child has a history of staring 
 86.10  spells or developmental regression.  
 86.11     (e) [COVERED SERVICES.] The focus of IEIBTS must be to 
 86.12  treat the principal diagnostic features of the autism spectrum 
 86.13  disorder.  All IEIBTS must be delivered by a team of 
 86.14  practitioners under the consistent supervision of a single 
 86.15  clinical supervisor.  A mental health professional must develop 
 86.16  the ITP for IEIBTS.  The ITP must include six-month benchmark 
 86.17  behavior objectives.  All behavior therapy must be based upon 
 86.18  research in applied behavior analysis, with an emphasis upon 
 86.19  positive reinforcement of carefully task-analyzed skills for 
 86.20  optimum rates of progress.  All behavior therapy must be 
 86.21  consistently applied and generalized throughout the 24-hour day 
 86.22  and seven-day week by all of the child's regular care 
 86.23  providers.  When placing the child in school activities, a 
 86.24  majority of the peers must have no mental health diagnosis, and 
 86.25  the child must have sufficient social skills to succeed with 80 
 86.26  percent of the school activities.  Reactive consequences, such 
 86.27  as redirection, correction, positive practice, or time-out, must 
 86.28  be used only when necessary to improve the child's success when 
 86.29  proactive procedures alone have not been effective.  IEIBTS must 
 86.30  be delivered by a team of behavior therapy practitioners who are 
 86.31  employed under the direction of the same agency.  The team may 
 86.32  deliver up to 200 billable hours per year of direct clinical 
 86.33  supervisor services, up to 750 billable hours per year of senior 
 86.34  behavior therapist services, and up to 1,800 billable hours per 
 86.35  year of direct behavior therapist services.  A one-hour clinical 
 86.36  review meeting for the child, parents, and staff must be 
 87.1   scheduled 50 weeks a year, at which behavior therapy is reviewed 
 87.2   and planned.  At least one-quarter of the annual clinical 
 87.3   supervisor billable hours shall consist of on-site clinical 
 87.4   meeting time.  At least one-half of the annual senior behavior 
 87.5   therapist billable hours shall consist of direct services to the 
 87.6   child or parents.  All of the behavioral therapist billable 
 87.7   hours shall consist of direct on-site services to the child or 
 87.8   parents.  None of the senior behavior therapist billable hours 
 87.9   or behavior therapist billable hours shall consist of clinical 
 87.10  meeting time.  If there is any regression of the autistic 
 87.11  spectrum disorder after 12 months of therapy, a neurologic 
 87.12  consultation must be performed. 
 87.13     (f) [PROVIDER QUALIFICATIONS.] The provider agency must be 
 87.14  capable of delivering consistent applied behavior analysis 
 87.15  (ABA)-based behavior therapy in the home.  The site director of 
 87.16  the agency must be a mental health professional certified as a 
 87.17  behavior analyst by the Association for Behavior Analysis.  Each 
 87.18  clinical supervisor must be certified as a behavior analyst by 
 87.19  the Association for Behavior Analysis. 
 87.20     (g) [SUPERVISION REQUIREMENTS.] (1) Each behavior therapist 
 87.21  practitioner must be continuously supervised while in the home 
 87.22  until the practitioner has mastered competencies for independent 
 87.23  practice.  Each behavior therapist must have mastered three 
 87.24  credits of academic content and practice in an ABA sequence at 
 87.25  an accredited university.  A college degree or minimum hours of 
 87.26  experience are not required.  Each behavior therapist must 
 87.27  continue training through weekly direct observation by the 
 87.28  senior behavior therapist, through demonstrated performance in 
 87.29  clinical meetings with the clinical supervisor, and annual 
 87.30  training in ABA. 
 87.31     (2) Each senior behavior therapist practitioner must have 
 87.32  mastered the senior behavior therapy competencies, completed one 
 87.33  year of practice as a behavior therapist, and six months of 
 87.34  co-therapy training with another senior behavior therapist or 
 87.35  have an equivalent amount of experience in ABA.  Each senior 
 87.36  behavior therapist must have mastered 12 credits of academic 
 88.1   content and practice in an ABA sequence at an accredited 
 88.2   university.  Each senior behavior therapist must continue 
 88.3   training through demonstrated performance in clinical meetings 
 88.4   with the clinical supervisor, and annual training in ABA. 
 88.5      (3) Each clinical supervisor practitioner must have 
 88.6   mastered the clinical supervisor and family consultation 
 88.7   competencies, completed two years of practice as a senior 
 88.8   behavior therapist and one year of co-therapy training with 
 88.9   another clinical supervisor, or equivalent experience in ABA.  
 88.10  Each clinical supervisor must continue training through annual 
 88.11  training in ABA. 
 88.12     (h) [PLACE OF SERVICE.] IEIBTS are provided primarily in 
 88.13  the child's home and community.  Services may be provided in the 
 88.14  child's natural school or preschool classroom, home of a 
 88.15  relative, natural recreational setting, or day care. 
 88.16     (i) [PRIOR AUTHORIZATION REQUIREMENTS.] Prior authorization 
 88.17  shall be required for services provided after 200 hours of 
 88.18  clinical supervisor, 750 hours of senior behavior therapist, or 
 88.19  1,800 hours of behavior therapist services per year. 
 88.20     (j) [PAYMENT RATES.] The following payment rates apply: 
 88.21     (1) for an IEIBTS clinical supervisor practitioner under 
 88.22  supervision of a mental health professional, the lower of the 
 88.23  submitted charge or $137 per hour unit; 
 88.24     (2) for an IEIBTS senior behavior therapist practitioner 
 88.25  under supervision of a mental health professional, the lower of 
 88.26  the submitted charge or $56 per hour unit; or 
 88.27     (3) for an IEIBTS behavior therapist practitioner under 
 88.28  supervision of a mental health professional, the lower of the 
 88.29  submitted charge or $19 per hour unit. 
 88.30  An IEIBTS practitioner may receive payment for travel time which 
 88.31  exceeds 50 minutes one-way.  The maximum payment allowed will be 
 88.32  $0.51 per minute for up to a maximum of 300 hours per year. 
 88.33     For any week during which the above charges are made to 
 88.34  medical assistance, payments for the following services are 
 88.35  excluded:  supervising mental health professional hours and 
 88.36  personal care attendant, home-based mental health, 
 89.1   family-community support, or mental health behavioral aide hours.
 89.2      (k) [REPORT.] The commissioner shall collect evidence of 
 89.3   the effectiveness of intensive early intervention behavior 
 89.4   therapy services and present a report to the legislature by July 
 89.5   1, 2006. 
 89.6      <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
 89.7      Sec. 17.  Minnesota Statutes 2000, section 256B.0625, 
 89.8   subdivision 13, is amended to read: 
 89.9      Subd. 13.  [DRUGS.] (a) Medical assistance covers drugs, 
 89.10  except for fertility drugs when specifically used to enhance 
 89.11  fertility, if prescribed by a licensed practitioner and 
 89.12  dispensed by a licensed pharmacist, by a physician enrolled in 
 89.13  the medical assistance program as a dispensing physician, or by 
 89.14  a physician or a nurse practitioner employed by or under 
 89.15  contract with a community health board as defined in section 
 89.16  145A.02, subdivision 5, for the purposes of communicable disease 
 89.17  control.  The commissioner, after receiving recommendations from 
 89.18  professional medical associations and professional pharmacist 
 89.19  associations, shall designate a formulary committee to advise 
 89.20  the commissioner on the names of drugs for which payment is 
 89.21  made, recommend a system for reimbursing providers on a set fee 
 89.22  or charge basis rather than the present system, and develop 
 89.23  methods encouraging use of generic drugs when they are less 
 89.24  expensive and equally effective as trademark drugs.  The 
 89.25  formulary committee shall consist of nine members, four of whom 
 89.26  shall be physicians who are not employed by the department of 
 89.27  human services, and a majority of whose practice is for persons 
 89.28  paying privately or through health insurance, three of whom 
 89.29  shall be pharmacists who are not employed by the department of 
 89.30  human services, and a majority of whose practice is for persons 
 89.31  paying privately or through health insurance, a consumer 
 89.32  representative, and a nursing home representative.  Committee 
 89.33  members shall serve three-year terms and shall serve without 
 89.34  compensation.  Members may be reappointed once.  
 89.35     (b) The commissioner shall establish a drug formulary.  Its 
 89.36  establishment and publication shall not be subject to the 
 90.1   requirements of the Administrative Procedure Act, but the 
 90.2   formulary committee shall review and comment on the formulary 
 90.3   contents.  The formulary committee shall review and recommend 
 90.4   drugs which require prior authorization.  The formulary 
 90.5   committee may recommend drugs for prior authorization directly 
 90.6   to the commissioner, as long as opportunity for public input is 
 90.7   provided.  Prior authorization may be requested by the 
 90.8   commissioner based on medical and clinical criteria before 
 90.9   certain drugs are eligible for payment.  Before a drug may be 
 90.10  considered for prior authorization at the request of the 
 90.11  commissioner:  
 90.12     (1) the drug formulary committee must develop criteria to 
 90.13  be used for identifying drugs; the development of these criteria 
 90.14  is not subject to the requirements of chapter 14, but the 
 90.15  formulary committee shall provide opportunity for public input 
 90.16  in developing criteria; 
 90.17     (2) the drug formulary committee must hold a public forum 
 90.18  and receive public comment for an additional 15 days; and 
 90.19     (3) the commissioner must provide information to the 
 90.20  formulary committee on the impact that placing the drug on prior 
 90.21  authorization will have on the quality of patient care and 
 90.22  information regarding whether the drug is subject to clinical 
 90.23  abuse or misuse.  Prior authorization may be required by the 
 90.24  commissioner before certain formulary drugs are eligible for 
 90.25  payment.  The formulary shall not include:  
 90.26     (i) drugs or products for which there is no federal 
 90.27  funding; 
 90.28     (ii) over-the-counter drugs, except for antacids, 
 90.29  acetaminophen, family planning products, aspirin, insulin, 
 90.30  products for the treatment of lice, vitamins for adults with 
 90.31  documented vitamin deficiencies, vitamins for children under the 
 90.32  age of seven and pregnant or nursing women, and any other 
 90.33  over-the-counter drug identified by the commissioner, in 
 90.34  consultation with the drug formulary committee, as necessary, 
 90.35  appropriate, and cost-effective for the treatment of certain 
 90.36  specified chronic diseases, conditions or disorders, and this 
 91.1   determination shall not be subject to the requirements of 
 91.2   chapter 14; 
 91.3      (iii) anorectics, except that medically necessary 
 91.4   anorectics shall be covered for a recipient previously diagnosed 
 91.5   as having pickwickian syndrome and currently diagnosed as having 
 91.6   diabetes and being morbidly obese; 
 91.7      (iv) drugs for which medical value has not been 
 91.8   established; and 
 91.9      (v) drugs from manufacturers who have not signed a rebate 
 91.10  agreement with the Department of Health and Human Services 
 91.11  pursuant to section 1927 of title XIX of the Social Security Act.
 91.12     The commissioner shall publish conditions for prohibiting 
 91.13  payment for specific drugs after considering the formulary 
 91.14  committee's recommendations.  An honorarium of $100 per meeting 
 91.15  and reimbursement for mileage shall be paid to each committee 
 91.16  member in attendance.  
 91.17     (c) The basis for determining the amount of payment shall 
 91.18  be the lower of the actual acquisition costs of the drugs plus a 
 91.19  fixed dispensing fee; the maximum allowable cost set by the 
 91.20  federal government or by the commissioner plus the fixed 
 91.21  dispensing fee; or the usual and customary price charged to the 
 91.22  public.  The pharmacy dispensing fee shall be $3.65, except that 
 91.23  the dispensing fee for intravenous solutions which must be 
 91.24  compounded by the pharmacist shall be $8 per bag, $14 per bag 
 91.25  for cancer chemotherapy products, and $30 per bag for total 
 91.26  parenteral nutritional products dispensed in one liter 
 91.27  quantities, or $44 per bag for total parenteral nutritional 
 91.28  products dispensed in quantities greater than one liter.  Actual 
 91.29  acquisition cost includes quantity and other special discounts 
 91.30  except time and cash discounts.  The actual acquisition cost of 
 91.31  a drug shall be estimated by the commissioner, at average 
 91.32  wholesale price minus nine percent, except that where a drug has 
 91.33  had its wholesale price reduced as a result of the actions of 
 91.34  the National Association of Medicaid Fraud Control Units, the 
 91.35  estimated actual acquisition cost shall be the reduced average 
 91.36  wholesale price, without the nine percent deduction.  The 
 92.1   maximum allowable cost of a multisource drug may be set by the 
 92.2   commissioner and it shall be comparable to, but no higher than, 
 92.3   the maximum amount paid by other third-party payors in this 
 92.4   state who have maximum allowable cost programs.  The 
 92.5   commissioner shall set maximum allowable costs for multisource 
 92.6   drugs that are not on the federal upper limit list as described 
 92.7   in United States Code, title 42, chapter 7, section 1396r-8(e), 
 92.8   the Social Security Act, and Code of Federal Regulations, title 
 92.9   42, part 447, section 447.332.  Establishment of the amount of 
 92.10  payment for drugs shall not be subject to the requirements of 
 92.11  the Administrative Procedure Act.  An additional dispensing fee 
 92.12  of $.30 may be added to the dispensing fee paid to pharmacists 
 92.13  for legend drug prescriptions dispensed to residents of 
 92.14  long-term care facilities when a unit dose blister card system, 
 92.15  approved by the department, is used.  Under this type of 
 92.16  dispensing system, the pharmacist must dispense a 30-day supply 
 92.17  of drug.  The National Drug Code (NDC) from the drug container 
 92.18  used to fill the blister card must be identified on the claim to 
 92.19  the department.  The unit dose blister card containing the drug 
 92.20  must meet the packaging standards set forth in Minnesota Rules, 
 92.21  part 6800.2700, that govern the return of unused drugs to the 
 92.22  pharmacy for reuse.  The pharmacy provider will be required to 
 92.23  credit the department for the actual acquisition cost of all 
 92.24  unused drugs that are eligible for reuse.  Over-the-counter 
 92.25  medications must be dispensed in the manufacturer's unopened 
 92.26  package.  The commissioner may permit the drug clozapine to be 
 92.27  dispensed in a quantity that is less than a 30-day supply.  
 92.28  Whenever a generically equivalent product is available, payment 
 92.29  shall be on the basis of the actual acquisition cost of the 
 92.30  generic drug, unless the prescriber specifically indicates 
 92.31  "dispense as written - brand necessary" on the prescription as 
 92.32  required by section 151.21, subdivision 2. 
 92.33     (d) For purposes of this subdivision, "multisource drugs" 
 92.34  means covered outpatient drugs, excluding innovator multisource 
 92.35  drugs for which there are two or more drug products, which: 
 92.36     (1) are related as therapeutically equivalent under the 
 93.1   Food and Drug Administration's most recent publication of 
 93.2   "Approved Drug Products with Therapeutic Equivalence 
 93.3   Evaluations"; 
 93.4      (2) are pharmaceutically equivalent and bioequivalent as 
 93.5   determined by the Food and Drug Administration; and 
 93.6      (3) are sold or marketed in Minnesota. 
 93.7   "Innovator multisource drug" means a multisource drug that was 
 93.8   originally marketed under an original new drug application 
 93.9   approved by the Food and Drug Administration. 
 93.10     (e) The basis for determining the amount of payment for 
 93.11  drugs administered in an outpatient setting shall be the lower 
 93.12  of the usual and customary cost submitted by the provider; the 
 93.13  average wholesale price minus five percent; or the maximum 
 93.14  allowable cost set by the federal government under United States 
 93.15  Code, title 42, chapter 7, section 1396r-8(e) and Code of 
 93.16  Federal Regulations, title 42, section 447.332, or by the 
 93.17  commissioner under paragraph (c). 
 93.18     Sec. 18.  Minnesota Statutes 2000, section 256B.0625, 
 93.19  subdivision 13a, is amended to read: 
 93.20     Subd. 13a.  [DRUG UTILIZATION REVIEW BOARD.] A nine-member 
 93.21  drug utilization review board is established.  The board is 
 93.22  comprised of at least three but no more than four licensed 
 93.23  physicians actively engaged in the practice of medicine in 
 93.24  Minnesota; at least three licensed pharmacists actively engaged 
 93.25  in the practice of pharmacy in Minnesota; and one consumer 
 93.26  representative; the remainder to be made up of health care 
 93.27  professionals who are licensed in their field and have 
 93.28  recognized knowledge in the clinically appropriate prescribing, 
 93.29  dispensing, and monitoring of covered outpatient drugs.  The 
 93.30  board shall be staffed by an employee of the department who 
 93.31  shall serve as an ex officio nonvoting member of the board.  The 
 93.32  members of the board shall be appointed by the commissioner and 
 93.33  shall serve three-year terms.  The members shall be selected 
 93.34  from lists submitted by professional associations.  The 
 93.35  commissioner shall appoint the initial members of the board for 
 93.36  terms expiring as follows:  three members for terms expiring 
 94.1   June 30, 1996; three members for terms expiring June 30, 1997; 
 94.2   and three members for terms expiring June 30, 1998.  Members may 
 94.3   be reappointed once.  The board shall annually elect a chair 
 94.4   from among the members. 
 94.5      The commissioner shall, with the advice of the board: 
 94.6      (1) implement a medical assistance retrospective and 
 94.7   prospective drug utilization review program as required by 
 94.8   United States Code, title 42, section 1396r-8(g)(3); 
 94.9      (2) develop and implement the predetermined criteria and 
 94.10  practice parameters for appropriate prescribing to be used in 
 94.11  retrospective and prospective drug utilization review; 
 94.12     (3) develop, select, implement, and assess interventions 
 94.13  for physicians, pharmacists, and patients that are educational 
 94.14  and not punitive in nature; 
 94.15     (4) establish a grievance and appeals process for 
 94.16  physicians and pharmacists under this section; 
 94.17     (5) publish and disseminate educational information to 
 94.18  physicians and pharmacists regarding the board and the review 
 94.19  program; 
 94.20     (6) adopt and implement procedures designed to ensure the 
 94.21  confidentiality of any information collected, stored, retrieved, 
 94.22  assessed, or analyzed by the board, staff to the board, or 
 94.23  contractors to the review program that identifies individual 
 94.24  physicians, pharmacists, or recipients; 
 94.25     (7) establish and implement an ongoing process to (i) 
 94.26  receive public comment regarding drug utilization review 
 94.27  criteria and standards, and (ii) consider the comments along 
 94.28  with other scientific and clinical information in order to 
 94.29  revise criteria and standards on a timely basis; and 
 94.30     (8) adopt any rules necessary to carry out this section. 
 94.31     The board may establish advisory committees.  The 
 94.32  commissioner may contract with appropriate organizations to 
 94.33  assist the board in carrying out the board's duties.  The 
 94.34  commissioner may enter into contracts for services to develop 
 94.35  and implement a retrospective and prospective review program. 
 94.36     The board shall report to the commissioner annually on the 
 95.1   date the Drug Utilization Review Annual Report is due to the 
 95.2   Health Care Financing Administration.  This report is to cover 
 95.3   the preceding federal fiscal year.  The commissioner shall make 
 95.4   the report available to the public upon request.  The report 
 95.5   must include information on the activities of the board and the 
 95.6   program; the effectiveness of implemented interventions; 
 95.7   administrative costs; and any fiscal impact resulting from the 
 95.8   program.  An honorarium of $50 $100 per meeting and 
 95.9   reimbursement for mileage shall be paid to each board member in 
 95.10  attendance. 
 95.11     Sec. 19.  Minnesota Statutes 2000, section 256B.0625, 
 95.12  subdivision 17, is amended to read: 
 95.13     Subd. 17.  [TRANSPORTATION COSTS.] (a) Medical assistance 
 95.14  covers transportation costs incurred solely for obtaining 
 95.15  emergency medical care or transportation costs incurred by 
 95.16  nonambulatory persons in obtaining emergency or nonemergency 
 95.17  medical care when paid directly to an ambulance company, common 
 95.18  carrier, or other recognized providers of transportation 
 95.19  services.  For the purpose of this subdivision, a person who is 
 95.20  incapable of transport by taxicab or bus shall be considered to 
 95.21  be nonambulatory. 
 95.22     (b) Medical assistance covers special transportation, as 
 95.23  defined in Minnesota Rules, part 9505.0315, subpart 1, item F, 
 95.24  if the provider receives and maintains a current physician's 
 95.25  order by the recipient's attending physician certifying that the 
 95.26  recipient has a physical or mental impairment that would 
 95.27  prohibit the recipient from safely accessing and using a bus, 
 95.28  taxi, other commercial transportation, or private automobile.  
 95.29  Special transportation includes driver-assisted service to 
 95.30  eligible individuals.  Driver-assisted service includes 
 95.31  passenger pickup at and return to the individual's residence or 
 95.32  place of business, assistance with admittance of the individual 
 95.33  to the medical facility, and assistance in passenger securement 
 95.34  or in securing of wheelchairs or stretchers in the vehicle.  The 
 95.35  commissioner shall establish maximum medical assistance 
 95.36  reimbursement rates for special transportation services for 
 96.1   persons who need a wheelchair lift accessible van or 
 96.2   stretcher-equipped vehicle and for those who do not need a 
 96.3   wheelchair lift accessible van or stretcher-equipped vehicle.  
 96.4   The average of these two rates per trip must not exceed $15 for 
 96.5   the base rate and $1.20 $1.50 per mile.  Special transportation 
 96.6   provided to nonambulatory ambulatory persons who do not need a 
 96.7   wheelchair lift van or stretcher-equipped vehicle, may be 
 96.8   reimbursed at a lower rate than special transportation provided 
 96.9   to persons who need a wheelchair lift van or stretcher-equipped 
 96.10  vehicle. 
 96.11     Sec. 20.  Minnesota Statutes 2000, section 256B.0625, 
 96.12  subdivision 17a, is amended to read: 
 96.13     Subd. 17a.  [PAYMENT FOR AMBULANCE SERVICES.] Effective for 
 96.14  services rendered on or after July 1, 1999 2001, medical 
 96.15  assistance payments for ambulance services shall be increased by 
 96.16  five percent paid at the greater of:  (1) the medical assistance 
 96.17  reimbursement rate in effect on June 30, 2000; or (2) the 
 96.18  current Medicare reimbursement rate for ambulance services. 
 96.19     Sec. 21.  Minnesota Statutes 2000, section 256B.0625, 
 96.20  subdivision 18a, is amended to read: 
 96.21     Subd. 18a.  [PAYMENT FOR MEALS AND LODGING ACCESS TO 
 96.22  MEDICAL SERVICES.] (a) Medical assistance reimbursement for 
 96.23  meals for persons traveling to receive medical care may not 
 96.24  exceed $5.50 for breakfast, $6.50 for lunch, or $8 for dinner. 
 96.25     (b) Medical assistance reimbursement for lodging for 
 96.26  persons traveling to receive medical care may not exceed $50 per 
 96.27  day unless prior authorized by the local agency. 
 96.28     (c) Medical assistance direct mileage reimbursement to the 
 96.29  eligible person or the eligible person's driver may not exceed 
 96.30  20 cents per mile. 
 96.31     (d) Medical assistance covers oral language interpreter 
 96.32  services when provided by an enrolled health care provider 
 96.33  during the course of providing a direct, person-to-person 
 96.34  covered health care service to an enrolled recipient with 
 96.35  limited English proficiency. 
 96.36     Sec. 22.  Minnesota Statutes 2000, section 256B.0625, 
 97.1   subdivision 30, is amended to read: 
 97.2      Subd. 30.  [OTHER CLINIC SERVICES.] (a) Medical assistance 
 97.3   covers rural health clinic services, federally qualified health 
 97.4   center services, nonprofit community health clinic services, 
 97.5   public health clinic services, and the services of a clinic 
 97.6   meeting the criteria established in rule by the commissioner.  
 97.7   Rural health clinic services and federally qualified health 
 97.8   center services mean services defined in United States Code, 
 97.9   title 42, section 1396d(a)(2)(B) and (C).  Payment for rural 
 97.10  health clinic and federally qualified health center services 
 97.11  shall be made according to applicable federal law and regulation.
 97.12     (b) A federally qualified health center that is beginning 
 97.13  initial operation shall submit an estimate of budgeted costs and 
 97.14  visits for the initial reporting period in the form and detail 
 97.15  required by the commissioner.  A federally qualified health 
 97.16  center that is already in operation shall submit an initial 
 97.17  report using actual costs and visits for the initial reporting 
 97.18  period.  Within 90 days of the end of its reporting period, a 
 97.19  federally qualified health center shall submit, in the form and 
 97.20  detail required by the commissioner, a report of its operations, 
 97.21  including allowable costs actually incurred for the period and 
 97.22  the actual number of visits for services furnished during the 
 97.23  period, and other information required by the commissioner.  
 97.24  Federally qualified health centers that file Medicare cost 
 97.25  reports shall provide the commissioner with a copy of the most 
 97.26  recent Medicare cost report filed with the Medicare program 
 97.27  intermediary for the reporting year which support the costs 
 97.28  claimed on their cost report to the state. 
 97.29     (c) In order to continue cost-based payment under the 
 97.30  medical assistance program according to paragraphs (a) and (b), 
 97.31  a federally qualified health center or rural health clinic must 
 97.32  apply for designation as an essential community provider within 
 97.33  six months of final adoption of rules by the department of 
 97.34  health according to section 62Q.19, subdivision 7.  For those 
 97.35  federally qualified health centers and rural health clinics that 
 97.36  have applied for essential community provider status within the 
 98.1   six-month time prescribed, medical assistance payments will 
 98.2   continue to be made according to paragraphs (a) and (b) for the 
 98.3   first three years after application.  For federally qualified 
 98.4   health centers and rural health clinics that either do not apply 
 98.5   within the time specified above or who have had essential 
 98.6   community provider status for three years, medical assistance 
 98.7   payments for health services provided by these entities shall be 
 98.8   according to the same rates and conditions applicable to the 
 98.9   same service provided by health care providers that are not 
 98.10  federally qualified health centers or rural health clinics.  
 98.11     (d) Effective July 1, 1999, the provisions of paragraph (c) 
 98.12  requiring a federally qualified health center or a rural health 
 98.13  clinic to make application for an essential community provider 
 98.14  designation in order to have cost-based payments made according 
 98.15  to paragraphs (a) and (b) no longer apply. 
 98.16     (e) Effective January 1, 2000, payments made according to 
 98.17  paragraphs (a) and (b) shall be limited to the cost phase-out 
 98.18  schedule of the Balanced Budget Act of 1997. 
 98.19     (f) Effective January 1, 2001, each federally qualified 
 98.20  health center and rural health clinic may elect to be paid 
 98.21  either under the prospective payment system established in 
 98.22  United States Code, title 42, section 1396a, paragraph (a) or 
 98.23  under an alternative payment methodology consistent with the 
 98.24  requirements of United States Code, title 42, section 1392a, 
 98.25  paragraph (a) and approved by the health care financing 
 98.26  administration.  The alternative payment methodology shall be 
 98.27  100 percent of cost as determined according to Medicare cost 
 98.28  principles. 
 98.29     Sec. 23.  Minnesota Statutes 2000, section 256B.0625, 
 98.30  subdivision 34, is amended to read: 
 98.31     Subd. 34.  [INDIAN HEALTH SERVICES FACILITIES.] Medical 
 98.32  assistance payments and MinnesotaCare payments to facilities of 
 98.33  the Indian health service and facilities operated by a tribe or 
 98.34  tribal organization under funding authorized by United States 
 98.35  Code, title 25, sections 450f to 450n, or title III of the 
 98.36  Indian Self-Determination and Education Assistance Act, Public 
 99.1   Law Number 93-638, for enrollees who are eligible for federal 
 99.2   financial participation, shall be at the option of the facility 
 99.3   in accordance with the rate published by the United States 
 99.4   Assistant Secretary for Health under the authority of United 
 99.5   States Code, title 42, sections 248(a) and 249(b).  General 
 99.6   assistance medical care payments to facilities of the Indian 
 99.7   health services and facilities operated by a tribe or tribal 
 99.8   organization for the provision of outpatient medical care 
 99.9   services billed after June 30, 1990, must be in accordance with 
 99.10  the general assistance medical care rates paid for the same 
 99.11  services when provided in a facility other than a facility of 
 99.12  the Indian health service or a facility operated by a tribe or 
 99.13  tribal organization.  MinnesotaCare payments for enrollees who 
 99.14  are not eligible for federal financial participation at 
 99.15  facilities of the Indian Health Service and facilities operated 
 99.16  by a tribe or tribal organization for the provision of 
 99.17  outpatient medical services must be in accordance with the 
 99.18  medical assistance rates paid for the same services when 
 99.19  provided in a facility other than a facility of the Indian 
 99.20  Health Service or a facility operated by a tribe or tribal 
 99.21  organization. 
 99.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 99.23  following final enactment. 
 99.24     Sec. 24.  Minnesota Statutes 2000, section 256B.0635, 
 99.25  subdivision 1, is amended to read: 
 99.26     Subdivision 1.  [INCREASED EMPLOYMENT.] Beginning January 
 99.27  1, 1998 (a) Until June 30, 2002, medical assistance may be paid 
 99.28  for persons who received MFIP-S or medical assistance for 
 99.29  families and children in at least three of six months preceding 
 99.30  the month in which the person became ineligible for MFIP-S or 
 99.31  medical assistance, if the ineligibility was due to an increase 
 99.32  in hours of employment or employment income or due to the loss 
 99.33  of an earned income disregard.  In addition, to receive 
 99.34  continued assistance under this section, persons who received 
 99.35  medical assistance for families and children but did not receive 
 99.36  MFIP-S must have had income less than or equal to the assistance 
100.1   standard for their family size under the state's AFDC plan in 
100.2   effect as of July 16, 1996, as required by the Personal 
100.3   Responsibility and Work Opportunity Reconciliation Act of 1996 
100.4   (PRWORA), Public Law Number 104-193, increased according to 
100.5   section 256B.056, subdivision 4, at the time medical assistance 
100.6   eligibility began.  A person who is eligible for extended 
100.7   medical assistance is entitled to six months of assistance 
100.8   without reapplication, unless the assistance unit ceases to 
100.9   include a dependent child.  For a person under 21 years of age, 
100.10  medical assistance may not be discontinued within the six-month 
100.11  period of extended eligibility until it has been determined that 
100.12  the person is not otherwise eligible for medical assistance.  
100.13  Medical assistance may be continued for an additional six months 
100.14  if the person meets all requirements for the additional six 
100.15  months, according to title XIX of the Social Security Act, as 
100.16  amended by section 303 of the Family Support Act of 1988, Public 
100.17  Law Number 100-485. 
100.18     (b) Beginning July 1, 2002, medical assistance for families 
100.19  and children may be paid for persons who were eligible under 
100.20  section 256B.055, subdivision 3a, paragraph (b), in at least 
100.21  three of six months preceding the month in which the person 
100.22  became ineligible under that section if the ineligibility was 
100.23  due to an increase in hours of employment or employment income 
100.24  or due to the loss of an earned income disregard.  A person who 
100.25  is eligible for extended medical assistance is entitled to six 
100.26  months of assistance without reapplication, unless the 
100.27  assistance unit ceases to include a dependent child, except 
100.28  medical assistance may not be discontinued for that dependent 
100.29  child under 21 years of age within the six-month period of 
100.30  extended eligibility until it has been determined that the 
100.31  person is not otherwise eligible for medical assistance.  
100.32  Medical assistance may be continued for an additional six months 
100.33  if the person meets all requirements for the additional six 
100.34  months, according to title XIX of the Social Security Act, as 
100.35  amended by section 303 of the Family Support Act of 1988, Public 
100.36  Law Number 100-485. 
101.1      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
101.2      Sec. 25.  Minnesota Statutes 2000, section 256B.0635, 
101.3   subdivision 2, is amended to read: 
101.4      Subd. 2.  [INCREASED CHILD OR SPOUSAL SUPPORT.] Beginning 
101.5   January 1, 1998 (a) Until June 30, 2002, medical assistance may 
101.6   be paid for persons who received MFIP-S or medical assistance 
101.7   for families and children in at least three of the six months 
101.8   preceding the month in which the person became ineligible for 
101.9   MFIP-S or medical assistance, if the ineligibility was the 
101.10  result of the collection of child or spousal support under part 
101.11  D of title IV of the Social Security Act.  In addition, to 
101.12  receive continued assistance under this section, persons who 
101.13  received medical assistance for families and children but did 
101.14  not receive MFIP-S must have had income less than or equal to 
101.15  the assistance standard for their family size under the state's 
101.16  AFDC plan in effect as of July 16, 1996, as required by the 
101.17  Personal Responsibility and Work Opportunity Reconciliation Act 
101.18  of 1996 (PRWORA), Public Law Number 104-193 increased according 
101.19  to section 256B.056, subdivision 4, at the time medical 
101.20  assistance eligibility began.  A person who is eligible for 
101.21  extended medical assistance under this subdivision is entitled 
101.22  to four months of assistance without reapplication, unless the 
101.23  assistance unit ceases to include a dependent child.  For a 
101.24  person under 21 years of age, except medical assistance may not 
101.25  be discontinued for that dependent child under 21 years of age 
101.26  within the four-month period of extended eligibility until it 
101.27  has been determined that the person is not otherwise eligible 
101.28  for medical assistance. 
101.29     (b) Beginning July 1, 2002, medical assistance for families 
101.30  and children may be paid for persons who were eligible under 
101.31  section 256B.055, subdivision 3a, paragraph (b), in at least 
101.32  three of the six months preceding the month in which the person 
101.33  became ineligible under that section if the ineligibility was 
101.34  the result of the collection of child or spousal support under 
101.35  part D of title IV of the Social Security Act.  A person who is 
101.36  eligible for extended medical assistance under this subdivision 
102.1   is entitled to four months of assistance without reapplication, 
102.2   unless the assistance unit ceases to include a dependent child, 
102.3   except medical assistance may not be discontinued for that 
102.4   dependent child under 21 years of age within the four-month 
102.5   period of extended eligibility until it has been determined that 
102.6   the person is not otherwise eligible for medical assistance. 
102.7      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
102.8      Sec. 26.  [256B.0637] [PRESUMPTIVE ELIGIBILITY FOR CERTAIN 
102.9   PERSONS NEEDING TREATMENT FOR BREAST OR CERVICAL CANCER.] 
102.10     Medical assistance is available during a presumptive 
102.11  eligibility period for persons who meet the criteria in section 
102.12  256B.057, subdivision 10.  For purposes of this section, the 
102.13  presumptive eligibility period begins on the date on which an 
102.14  entity designated by the commissioner determines, based on 
102.15  preliminary information, that the person meets the criteria in 
102.16  section 256B.057, subdivision 10.  The presumptive eligibility 
102.17  period ends on the day on which a determination is made as to 
102.18  the person's eligibility, except that if an application is not 
102.19  submitted by the last day of the month following the month 
102.20  during which the determination based on preliminary information 
102.21  is made, the presumptive eligibility period ends on that last 
102.22  day of the month. 
102.23     Sec. 27.  [256B.195] [HEALTH CARE SAFETY NET PRESERVATION.] 
102.24     Subdivision 1.  [INTERGOVERNMENTAL TRANSFERS AND RELATED 
102.25  PAYMENTS.] (a) This section is contingent on federal approval of 
102.26  the intergovernmental transfers and payments to safety net 
102.27  hospitals authorized under this section. 
102.28     (b) In addition to the percentage contribution paid by a 
102.29  county under section 256B.19, subdivision 1, the governmental 
102.30  units designated in this subdivision shall be responsible for an 
102.31  additional portion of the nonfederal share of medical assistance 
102.32  costs attributable to them.  For purposes of this section, 
102.33  "designated governmental unit" means Hennepin county, Ramsey 
102.34  county, or the University of Minnesota.  For purposes of this 
102.35  section, "nonstate, government hospital" means Hennepin County 
102.36  Medical Center, the successor or assignee to St. Paul-Ramsey 
103.1   Medical Center as described in section 383A.91, or Fairview 
103.2   University Medical Center. 
103.3      (c) Effective July 1, 2001, the governmental units 
103.4   designated in paragraph (a) shall in total transfer $2,833,333 
103.5   on a monthly basis to the state Medicaid agency.  The 
103.6   commissioner shall allocate this assessment between the 
103.7   governmental units based on the proportion of the Medicare upper 
103.8   payment limit for each nonstate, government hospital located 
103.9   within the governmental unit to the total Medicare upper payment 
103.10  limit of all participating hospitals in paragraph (b).  
103.11     (d) The commissioner shall distribute the proceeds of this 
103.12  intergovernmental transfer, including the federal Medicaid 
103.13  match, as follows: 
103.14     (1) Proceeds may be no less than the amount of the 
103.15  intergovernmental transfer in paragraph (c) multiplied by 1.75. 
103.16     (2) The remaining proceeds provide funding for hospital 
103.17  charity care aid under section 144.585.  The commissioner of 
103.18  human services shall work with the commissioner of health to 
103.19  assure that hospital charity care aid payments are administered 
103.20  in a manner that generates Medicaid matching funds.  
103.21     (e) The successor or assignee to St. Paul-Ramsey Medical 
103.22  Center shall transfer on a monthly basis to Ramsey county an 
103.23  amount equal to the county assessment under paragraph (c). 
103.24     Subd. 2.  [DETERMINATION OF INTERGOVERNMENTAL TRANSFER 
103.25  AMOUNTS.] Medicaid rate changes, including those required to 
103.26  obtain federal financial participation under section 62J.692, 
103.27  subdivision 8, enacted prior to the effective date of this 
103.28  legislation, shall precede the determination of 
103.29  intergovernmental transfer amounts determined in this section.  
103.30  Participation in the intergovernmental transfer program shall 
103.31  not result in the offset of any nonstate, government hospital's 
103.32  receipt of Medicaid payment increases. 
103.33     Subd. 3.  [STATE PLAN AMENDMENTS.] The commissioner shall 
103.34  amend the state Medicaid plan as necessary to implement this 
103.35  section. 
103.36     Subd. 4.  [PROPORTIONATE ADJUSTMENTS.] (a) The commissioner 
104.1   shall adjust the intergovernmental transfers under subdivision 
104.2   1, paragraph (c), and the payments under subdivision 1, 
104.3   paragraph (d), upon the approval of the designated governmental 
104.4   unit named in subdivision 1, paragraph (b), based on the 
104.5   commissioner's determination of Medicare upper payment limits, 
104.6   hospital-specific federal limitations on disproportionate share 
104.7   payments or to maximize additional federal reimbursements. 
104.8      (b) In the event that:  (i) federal approval is not 
104.9   received for the total intergovernmental transfer amount 
104.10  specified in subdivision 1, paragraph (d), or, (ii) federal 
104.11  rules regarding the establishment of the 150 percent Medicare 
104.12  upper payment limit, section 1102 of the Social Security Act, 
104.13  United States Code, title 42, section 1302, enacted on March 13, 
104.14  2001, are rescinded or, (iii) the federal 150 percent Medicare 
104.15  upper payment limit is reduced to 100 percent, the amount of the 
104.16  intergovernmental transfers and Medicaid payments to the 
104.17  nonstate, government hospitals named in subdivision 1, paragraph 
104.18  (b), shall be adjusted for each hospital based on the proportion 
104.19  of each hospital's Medicaid inpatient hospital days to the total 
104.20  Medicaid inpatient hospital days provided by all participating 
104.21  hospitals.  
104.22     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
104.23     Sec. 28.  Minnesota Statutes 2000, section 256B.69, 
104.24  subdivision 4, is amended to read: 
104.25     Subd. 4.  [LIMITATION OF CHOICE.] The commissioner shall 
104.26  develop criteria to determine when limitation of choice may be 
104.27  implemented in the experimental counties.  The criteria shall 
104.28  ensure that all eligible individuals in the county have 
104.29  continuing access to the full range of medical assistance 
104.30  services as specified in subdivision 6.  The commissioner shall 
104.31  exempt the following persons from participation in the project, 
104.32  in addition to those who do not meet the criteria for limitation 
104.33  of choice:  
104.34     (1) persons eligible for medical assistance according to 
104.35  section 256B.055, subdivision 1; 
104.36     (2) persons eligible for medical assistance due to 
105.1   blindness or disability as determined by the social security 
105.2   administration or the state medical review team, unless:  
105.3      (i) they are 65 years of age or older,; or 
105.4      (ii) they reside in Itasca county or they reside in a 
105.5   county in which the commissioner conducts a pilot project under 
105.6   a waiver granted pursuant to section 1115 of the Social Security 
105.7   Act; 
105.8      (3) recipients who currently have private coverage through 
105.9   a health maintenance organization; 
105.10     (4) recipients who are eligible for medical assistance by 
105.11  spending down excess income for medical expenses other than the 
105.12  nursing facility per diem expense; 
105.13     (5) recipients who receive benefits under the Refugee 
105.14  Assistance Program, established under United States Code, title 
105.15  8, section 1522(e); 
105.16     (6) children who are both determined to be severely 
105.17  emotionally disturbed and receiving case management services 
105.18  according to section 256B.0625, subdivision 20; and 
105.19     (7) adults who are both determined to be seriously and 
105.20  persistently mentally ill and received case management services 
105.21  according to section 256B.0625, subdivision 20; and 
105.22     (8) persons eligible for medical assistance according to 
105.23  section 256B.057, subdivision 10.  
105.24  Children under age 21 who are in foster placement may enroll in 
105.25  the project on an elective basis.  Individuals excluded under 
105.26  clauses (6) and (7) may choose to enroll on an elective basis.  
105.27  The commissioner may allow persons with a one-month spenddown 
105.28  who are otherwise eligible to enroll to voluntarily enroll or 
105.29  remain enrolled, if they elect to prepay their monthly spenddown 
105.30  to the state.  Beginning on or after July 1, 1997, The 
105.31  commissioner may require those individuals to enroll in the 
105.32  prepaid medical assistance program who otherwise would have been 
105.33  excluded under clauses (1) and, (3), and (8), and under 
105.34  Minnesota Rules, part 9500.1452, subpart 2, items H, K, and L.  
105.35  Before limitation of choice is implemented, eligible individuals 
105.36  shall be notified and after notification, shall be allowed to 
106.1   choose only among demonstration providers.  The commissioner may 
106.2   assign an individual with private coverage through a health 
106.3   maintenance organization, to the same health maintenance 
106.4   organization for medical assistance coverage, if the health 
106.5   maintenance organization is under contract for medical 
106.6   assistance in the individual's county of residence.  After 
106.7   initially choosing a provider, the recipient is allowed to 
106.8   change that choice only at specified times as allowed by the 
106.9   commissioner.  If a demonstration provider ends participation in 
106.10  the project for any reason, a recipient enrolled with that 
106.11  provider must select a new provider but may change providers 
106.12  without cause once more within the first 60 days after 
106.13  enrollment with the second provider. 
106.14     Sec. 29.  Minnesota Statutes 2000, section 256B.69, 
106.15  subdivision 5, is amended to read: 
106.16     Subd. 5.  [PROSPECTIVE PER CAPITA PAYMENT.] The 
106.17  commissioner shall establish the method and amount of payments 
106.18  for services.  The commissioner shall annually contract with 
106.19  demonstration providers to provide services consistent with 
106.20  these established methods and amounts for payment.  Payment 
106.21  rates established by the commissioner must be within the limits 
106.22  of available appropriations.  
106.23     If allowed by the commissioner, a demonstration provider 
106.24  may contract with an insurer, health care provider, nonprofit 
106.25  health service plan corporation, or the commissioner, to provide 
106.26  insurance or similar protection against the cost of care 
106.27  provided by the demonstration provider or to provide coverage 
106.28  against the risks incurred by demonstration providers under this 
106.29  section.  The recipients enrolled with a demonstration provider 
106.30  are a permissible group under group insurance laws and chapter 
106.31  62C, the Nonprofit Health Service Plan Corporations Act.  Under 
106.32  this type of contract, the insurer or corporation may make 
106.33  benefit payments to a demonstration provider for services 
106.34  rendered or to be rendered to a recipient.  Any insurer or 
106.35  nonprofit health service plan corporation licensed to do 
106.36  business in this state is authorized to provide this insurance 
107.1   or similar protection.  
107.2      Payments to providers participating in the project are 
107.3   exempt from the requirements of sections 256.966 and 256B.03, 
107.4   subdivision 2.  The commissioner shall complete development of 
107.5   capitation rates for payments before delivery of services under 
107.6   this section is begun.  For payments made during calendar year 
107.7   1990 and later years, the commissioner shall contract with an 
107.8   independent actuary to establish prepayment rates. 
107.9      By January 15, 1996, the commissioner shall report to the 
107.10  legislature on the methodology used to allocate to participating 
107.11  counties available administrative reimbursement for advocacy and 
107.12  enrollment costs.  The report shall reflect the commissioner's 
107.13  judgment as to the adequacy of the funds made available and of 
107.14  the methodology for equitable distribution of the funds.  The 
107.15  commissioner must involve participating counties in the 
107.16  development of the report. 
107.17     Sec. 30.  Minnesota Statutes 2000, section 256B.69, 
107.18  subdivision 5b, is amended to read: 
107.19     Subd. 5b.  [PROSPECTIVE REIMBURSEMENT RATES.] (a) For 
107.20  prepaid medical assistance and general assistance medical care 
107.21  program contract rates set by the commissioner under subdivision 
107.22  5 and effective on or after January 1, 1998, capitation rates 
107.23  for nonmetropolitan counties shall on a weighted average be no 
107.24  less than 88 percent of the capitation rates for metropolitan 
107.25  counties, excluding Hennepin county.  The commissioner shall 
107.26  make a pro rata adjustment in capitation rates paid to counties 
107.27  other than nonmetropolitan counties in order to make this 
107.28  provision budget neutral.  
107.29     (b) For prepaid medical assistance program contract rates 
107.30  set by the commissioner under subdivision 5 and effective on or 
107.31  after January 1, 2001 2002, capitation rates for nonmetropolitan 
107.32  counties shall, on a weighted average, be no less than 89 95 
107.33  percent of the capitation rates for metropolitan counties, 
107.34  excluding Hennepin county.  The commissioner shall make a pro 
107.35  rata adjustment in capitation rates paid to Hennepin county in 
107.36  order to make the portion of the increase between 89 and 95 
108.1   percent budget neutral. 
108.2      (c) This subdivision shall not affect the nongeographically 
108.3   based risk adjusted rates established under section 62Q.03, 
108.4   subdivision 5a, paragraph (f). 
108.5      (d) The commissioner shall require prepaid health plans to 
108.6   use all revenue received from the increase in capitation rates 
108.7   for nonmetropolitan counties from 89 to no less than 95 percent 
108.8   of the capitation rate for metropolitan counties, excluding 
108.9   Hennepin county, to increase reimbursement rates, effective 
108.10  January 1, 2002, for providers under contract with the prepaid 
108.11  health plan to serve enrollees from nonmetropolitan counties. 
108.12     Sec. 31.  Minnesota Statutes 2000, section 256B.69, is 
108.13  amended by adding a subdivision to read: 
108.14     Subd. 6c.  [DENTAL SERVICES DEMONSTRATION PROJECT.] The 
108.15  commissioner shall establish a dental services demonstration 
108.16  project in Crow Wing, Todd, Morrison, Wadena, and Cass counties 
108.17  for provision of dental services to medical assistance, general 
108.18  assistance medical care, and MinnesotaCare recipients.  The 
108.19  commissioner may contract on a prospective per capita payment 
108.20  basis for these dental services with an organization licensed 
108.21  under chapter 62C, 62D, or 62N in accordance with section 
108.22  256B.037 or may establish and administer a fee-for-service 
108.23  system for the reimbursement of dental services.  
108.24     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
108.25     Sec. 32.  Minnesota Statutes 2000, section 256B.75, is 
108.26  amended to read: 
108.27     256B.75 [HOSPITAL OUTPATIENT REIMBURSEMENT.] 
108.28     (a) For outpatient hospital facility fee payments for 
108.29  services rendered on or after October 1, 1992, the commissioner 
108.30  of human services shall pay the lower of (1) submitted charge, 
108.31  or (2) 32 percent above the rate in effect on June 30, 1992, 
108.32  except for those services for which there is a federal maximum 
108.33  allowable payment.  Effective for services rendered on or after 
108.34  January 1, 2000, payment rates for nonsurgical outpatient 
108.35  hospital facility fees and emergency room facility fees shall be 
108.36  increased by eight percent over the rates in effect on December 
109.1   31, 1999, except for those services for which there is a federal 
109.2   maximum allowable payment.  Services for which there is a 
109.3   federal maximum allowable payment shall be paid at the lower of 
109.4   (1) submitted charge, or (2) the federal maximum allowable 
109.5   payment.  Total aggregate payment for outpatient hospital 
109.6   facility fee services shall not exceed the Medicare upper 
109.7   limit.  If it is determined that a provision of this section 
109.8   conflicts with existing or future requirements of the United 
109.9   States government with respect to federal financial 
109.10  participation in medical assistance, the federal requirements 
109.11  prevail.  The commissioner may, in the aggregate, prospectively 
109.12  reduce payment rates to avoid reduced federal financial 
109.13  participation resulting from rates that are in excess of the 
109.14  Medicare upper limitations. 
109.15     (b) Notwithstanding paragraph (a), payment for outpatient, 
109.16  emergency, and ambulatory surgery hospital facility fee services 
109.17  for critical access hospitals designated under section 144.1483, 
109.18  clause (11), shall be paid on a cost-based payment system that 
109.19  is based on the cost-finding methods and allowable costs of the 
109.20  Medicare program. 
109.21     (c) Effective for services provided on or after July 1, 
109.22  2002, rates that are based on the Medicare outpatient 
109.23  prospective payment system shall be replaced by a budget neutral 
109.24  prospective payment system that is derived using medical 
109.25  assistance data.  The department shall provide a proposal to the 
109.26  2002 legislature to define and implement this provision. 
109.27     Sec. 33.  Minnesota Statutes 2000, section 256B.76, is 
109.28  amended to read: 
109.29     256B.76 [PHYSICIAN AND DENTAL REIMBURSEMENT.] 
109.30     (a) Effective for services rendered on or after October 1, 
109.31  1992, the commissioner shall make payments for physician 
109.32  services as follows: 
109.33     (1) payment for level one Health Care Finance 
109.34  Administration's common procedural coding system (HCPCS) codes 
109.35  titled "office and other outpatient services," "preventive 
109.36  medicine new and established patient," "delivery, antepartum, 
110.1   and postpartum care," "critical care," Caesarean cesarean 
110.2   delivery and pharmacologic management provided to psychiatric 
110.3   patients, and HCPCS level three codes for enhanced services for 
110.4   prenatal high risk, shall be paid at the lower of (i) submitted 
110.5   charges, or (ii) 25 percent above the rate in effect on June 30, 
110.6   1992.  If the rate on any procedure code within these categories 
110.7   is different than the rate that would have been paid under the 
110.8   methodology in section 256B.74, subdivision 2, then the larger 
110.9   rate shall be paid; 
110.10     (2) payments for all other services shall be paid at the 
110.11  lower of (i) submitted charges, or (ii) 15.4 percent above the 
110.12  rate in effect on June 30, 1992; 
110.13     (3) all physician rates shall be converted from the 50th 
110.14  percentile of 1982 to the 50th percentile of 1989, less the 
110.15  percent in aggregate necessary to equal the above increases 
110.16  except that payment rates for home health agency services shall 
110.17  be the rates in effect on September 30, 1992; 
110.18     (4) effective for services rendered on or after January 1, 
110.19  2000, payment rates for physician and professional services 
110.20  shall be increased by three percent over the rates in effect on 
110.21  December 31, 1999, except for home health agency and family 
110.22  planning agency services; and 
110.23     (5) the increases in clause (4) shall be implemented 
110.24  January 1, 2000, for managed care. 
110.25     (b) Effective for services rendered on or after October 1, 
110.26  1992, the commissioner shall make payments for dental services 
110.27  as follows: 
110.28     (1) dental services shall be paid at the lower of (i) 
110.29  submitted charges, or (ii) 25 percent above the rate in effect 
110.30  on June 30, 1992; 
110.31     (2) dental rates shall be converted from the 50th 
110.32  percentile of 1982 to the 50th percentile of 1989, less the 
110.33  percent in aggregate necessary to equal the above increases; 
110.34     (3) effective for services rendered on or after January 1, 
110.35  2000, payment rates for dental services shall be increased by 
110.36  three percent over the rates in effect on December 31, 1999; 
111.1      (4) the commissioner shall award grants to community 
111.2   clinics or other nonprofit community organizations, political 
111.3   subdivisions, professional associations, or other organizations 
111.4   that demonstrate the ability to provide dental services 
111.5   effectively to public program recipients.  Grants may be used to 
111.6   fund the costs related to coordinating access for recipients, 
111.7   developing and implementing patient care criteria, upgrading or 
111.8   establishing new facilities, acquiring furnishings or equipment, 
111.9   recruiting new providers, or other development costs that will 
111.10  improve access to dental care in a region.  In awarding grants, 
111.11  the commissioner shall give priority to applicants that plan to 
111.12  serve areas of the state in which the number of dental providers 
111.13  is not currently sufficient to meet the needs of recipients of 
111.14  public programs or uninsured individuals.  The commissioner 
111.15  shall consider the following in awarding the grants:  (i) 
111.16  potential to successfully increase access to an underserved 
111.17  population; (ii) the ability to raise matching funds; (iii) the 
111.18  long-term viability of the project to improve access beyond the 
111.19  period of initial funding; (iv) the efficiency in the use of the 
111.20  funding; and (v) the experience of the proposers in providing 
111.21  services to the target population. 
111.22     The commissioner shall monitor the grants and may terminate 
111.23  a grant if the grantee does not increase dental access for 
111.24  public program recipients.  The commissioner shall consider 
111.25  grants for the following: 
111.26     (i) implementation of new programs or continued expansion 
111.27  of current access programs that have demonstrated success in 
111.28  providing dental services in underserved areas; 
111.29     (ii) a pilot program for utilizing hygienists outside of a 
111.30  traditional dental office to provide dental hygiene services; 
111.31  and 
111.32     (iii) a program that organizes a network of volunteer 
111.33  dentists, establishes a system to refer eligible individuals to 
111.34  volunteer dentists, and through that network provides donated 
111.35  dental care services to public program recipients or uninsured 
111.36  individuals. 
112.1      (5) beginning October 1, 1999, the payment for tooth 
112.2   sealants and fluoride treatments shall be the lower of (i) 
112.3   submitted charge, or (ii) 80 percent of median 1997 charges; and 
112.4      (6) the increases listed in clauses (3) and (5) shall be 
112.5   implemented January 1, 2000, for managed care; and 
112.6      (7) effective for services provided on or after October 1, 
112.7   2001, payment for diagnostic examinations and dental x-rays 
112.8   provided to children under age 21 shall be the lower of (i) the 
112.9   submitted charge, or (ii) 85 percent of median 1999 charges.  
112.10     (c) Effective for dental services rendered on or after July 
112.11  1, 2001, the commissioner may increase reimbursements to 
112.12  dentists and dental clinics deemed by the commissioner to be 
112.13  critical access dental providers.  Reimbursement to a critical 
112.14  access dental provider may be increased by not more than 50 
112.15  percent above the reimbursement rate that would otherwise be 
112.16  paid to the provider.  Payments to health plan companies shall 
112.17  be adjusted to reflect increased reimbursements to critical 
112.18  access dental providers as approved by the commissioner.  In 
112.19  determining which dentists and dental clinics shall be deemed 
112.20  critical access dental providers, the commissioner shall review: 
112.21     (1) the utilization rate in the service area in which the 
112.22  dentist or dental clinic operates for dental services to 
112.23  patients covered by medical assistance, general assistance 
112.24  medical care, or MinnesotaCare as their primary source of 
112.25  coverage; 
112.26     (2) the level of services provided by the dentist or dental 
112.27  clinic to patients covered by medical assistance, general 
112.28  assistance medical care, or MinnesotaCare as their primary 
112.29  source of coverage; and 
112.30     (3) whether the level of services provided by the dentist 
112.31  or dental clinic is critical to maintaining adequate levels of 
112.32  patient access within the service area. 
112.33  In the absence of a critical access dental provider in a service 
112.34  area, the commissioner may designate a dentist or dental clinic 
112.35  as a critical access dental provider if the dentist or dental 
112.36  clinic is willing to provide care to patients covered by medical 
113.1   assistance, general assistance medical care, or MinnesotaCare at 
113.2   a level which significantly increases access to dental care in 
113.3   the service area. 
113.4      (d) An entity that operates both a Medicare certified 
113.5   comprehensive outpatient rehabilitation facility and a facility 
113.6   which was certified prior to January 1, 1993, that is licensed 
113.7   under Minnesota Rules, parts 9570.2000 to 9570.3600, and for 
113.8   whom at least 33 percent of the clients receiving rehabilitation 
113.9   services in the most recent calendar year are medical assistance 
113.10  recipients, shall be reimbursed by the commissioner for 
113.11  rehabilitation services at rates that are 38 percent greater 
113.12  than the maximum reimbursement rate allowed under paragraph (a), 
113.13  clause (2), when those services are (1) provided within the 
113.14  comprehensive outpatient rehabilitation facility and (2) 
113.15  provided to residents of nursing facilities owned by the entity. 
113.16     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
113.17  following final enactment. 
113.18     Sec. 34.  [256B.78] [MEDICAL ASSISTANCE DEMONSTRATION 
113.19  PROJECT FOR FAMILY PLANNING SERVICES.] 
113.20     (a) The commissioner of human services shall establish a 
113.21  medical assistance demonstration project to determine whether 
113.22  improved access to coverage of prepregnancy family planning 
113.23  services reduces medical assistance and MFIP costs. 
113.24     (b) This section is effective upon federal approval of the 
113.25  demonstration project. 
113.26     Sec. 35.  Minnesota Statutes 2000, section 256D.03, 
113.27  subdivision 3, is amended to read: 
113.28     Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
113.29  (a) General assistance medical care may be paid for any person 
113.30  who is not eligible for medical assistance under chapter 256B, 
113.31  including eligibility for medical assistance based on a 
113.32  spenddown of excess income according to section 256B.056, 
113.33  subdivision 5, or MinnesotaCare as defined in paragraph (b), 
113.34  except as provided in paragraph (c); and: 
113.35     (1) who is receiving assistance under section 256D.05, 
113.36  except for families with children who are eligible under 
114.1   Minnesota family investment program-statewide (MFIP-S), who is 
114.2   having a payment made on the person's behalf under sections 
114.3   256I.01 to 256I.06, or who resides in group residential housing 
114.4   as defined in chapter 256I and can meet a spenddown using the 
114.5   cost of remedial services received through group residential 
114.6   housing; or 
114.7      (2)(i) who is a resident of Minnesota; and whose equity in 
114.8   assets is not in excess of $1,000 per assistance unit.  Exempt 
114.9   assets, the reduction of excess assets, and the waiver of excess 
114.10  assets must conform to the medical assistance program in chapter 
114.11  256B, with the following exception:  the maximum amount of 
114.12  undistributed funds in a trust that could be distributed to or 
114.13  on behalf of the beneficiary by the trustee, assuming the full 
114.14  exercise of the trustee's discretion under the terms of the 
114.15  trust, must be applied toward the asset maximum; and 
114.16     (ii) who has countable income not in excess of the 
114.17  assistance standards established in section 256B.056, 
114.18  subdivision 4 that does not exceed 133 and 1/3 percent of the 
114.19  AFDC income standard in effect under the July 16, 1996, AFDC 
114.20  state plan, increased by three percent, or whose excess income 
114.21  is spent down according to section 256B.056, subdivision 5, 
114.22  using a six-month budget period.  The method for calculating 
114.23  earned income disregards and deductions for a person who resides 
114.24  with a dependent child under age 21 shall follow section 
114.25  256B.056, subdivision 1a.  However, if a disregard of $30 and 
114.26  one-third of the remainder has been applied to the wage earner's 
114.27  income, the disregard shall not be applied again until the wage 
114.28  earner's income has not been considered in an eligibility 
114.29  determination for general assistance, general assistance medical 
114.30  care, medical assistance, or MFIP-S for 12 consecutive months.  
114.31  The earned income and work expense deductions for a person who 
114.32  does not reside with a dependent child under age 21 shall be the 
114.33  same as the method used to determine eligibility for a person 
114.34  under section 256D.06, subdivision 1, except the disregard of 
114.35  the first $50 of earned income is not allowed; 
114.36     (3) who would be eligible for medical assistance except 
115.1   that the person resides in a facility that is determined by the 
115.2   commissioner or the federal Health Care Financing Administration 
115.3   to be an institution for mental diseases; or 
115.4      (4) who is ineligible for medical assistance under chapter 
115.5   256B or general assistance medical care under any other 
115.6   provision of this section, and is receiving care and 
115.7   rehabilitation services from a nonprofit center established to 
115.8   serve victims of torture.  These individuals are eligible for 
115.9   general assistance medical care only for the period during which 
115.10  they are receiving services from the center.  During this period 
115.11  of eligibility, individuals eligible under this clause shall not 
115.12  be required to participate in prepaid general assistance medical 
115.13  care.  
115.14     (b) Beginning January 1, 2000, applicants or recipients who 
115.15  meet all eligibility requirements of MinnesotaCare as defined in 
115.16  sections 256L.01 to 256L.16, and are: 
115.17     (i) adults with dependent children under 21 whose gross 
115.18  family income is equal to or less than 275 percent of the 
115.19  federal poverty guidelines; or 
115.20     (ii) adults without children with earned income and whose 
115.21  family gross income is between 75 percent of the federal poverty 
115.22  guidelines and the amount set by section 256L.04, subdivision 7, 
115.23  shall be terminated from general assistance medical care upon 
115.24  enrollment in MinnesotaCare. 
115.25     (c) For services rendered on or after July 1, 1997, 
115.26  eligibility is limited to one month prior to application if the 
115.27  person is determined eligible in the prior month.  A 
115.28  redetermination of eligibility must occur every 12 months.  
115.29  Beginning January 1, 2000, Minnesota health care program 
115.30  applications completed by recipients and applicants who are 
115.31  persons described in paragraph (b), may be returned to the 
115.32  county agency to be forwarded to the department of human 
115.33  services or sent directly to the department of human services 
115.34  for enrollment in MinnesotaCare.  If all other eligibility 
115.35  requirements of this subdivision are met, eligibility for 
115.36  general assistance medical care shall be available in any month 
116.1   during which a MinnesotaCare eligibility determination and 
116.2   enrollment are pending.  Upon notification of eligibility for 
116.3   MinnesotaCare, notice of termination for eligibility for general 
116.4   assistance medical care shall be sent to an applicant or 
116.5   recipient.  If all other eligibility requirements of this 
116.6   subdivision are met, eligibility for general assistance medical 
116.7   care shall be available until enrollment in MinnesotaCare 
116.8   subject to the provisions of paragraph (e). 
116.9      (d) The date of an initial Minnesota health care program 
116.10  application necessary to begin a determination of eligibility 
116.11  shall be the date the applicant has provided a name, address, 
116.12  and social security number, signed and dated, to the county 
116.13  agency or the department of human services.  If the applicant is 
116.14  unable to provide an initial application when health care is 
116.15  delivered due to a medical condition or disability, a health 
116.16  care provider may act on the person's behalf to complete the 
116.17  initial application.  The applicant must complete the remainder 
116.18  of the application and provide necessary verification before 
116.19  eligibility can be determined.  The county agency must assist 
116.20  the applicant in obtaining verification if necessary.  On the 
116.21  basis of information provided on the completed application, an 
116.22  applicant who meets the following criteria shall be determined 
116.23  eligible beginning in the month of application: 
116.24     (1) has gross income less than 90 percent of the applicable 
116.25  income standard; 
116.26     (2) has liquid assets that total within $300 of the asset 
116.27  standard; 
116.28     (3) does not reside in a long-term care facility; and 
116.29     (4) meets all other eligibility requirements. 
116.30  The applicant must provide all required verifications within 30 
116.31  days' notice of the eligibility determination or eligibility 
116.32  shall be terminated. 
116.33     (e) County agencies are authorized to use all automated 
116.34  databases containing information regarding recipients' or 
116.35  applicants' income in order to determine eligibility for general 
116.36  assistance medical care or MinnesotaCare.  Such use shall be 
117.1   considered sufficient in order to determine eligibility and 
117.2   premium payments by the county agency. 
117.3      (f) General assistance medical care is not available for a 
117.4   person in a correctional facility unless the person is detained 
117.5   by law for less than one year in a county correctional or 
117.6   detention facility as a person accused or convicted of a crime, 
117.7   or admitted as an inpatient to a hospital on a criminal hold 
117.8   order, and the person is a recipient of general assistance 
117.9   medical care at the time the person is detained by law or 
117.10  admitted on a criminal hold order and as long as the person 
117.11  continues to meet other eligibility requirements of this 
117.12  subdivision.  
117.13     (g) General assistance medical care is not available for 
117.14  applicants or recipients who do not cooperate with the county 
117.15  agency to meet the requirements of medical assistance.  General 
117.16  assistance medical care is limited to payment of emergency 
117.17  services only for applicants or recipients as described in 
117.18  paragraph (b), whose MinnesotaCare coverage is denied or 
117.19  terminated for nonpayment of premiums as required by sections 
117.20  256L.06 and 256L.07.  
117.21     (h) In determining the amount of assets of an individual, 
117.22  there shall be included any asset or interest in an asset, 
117.23  including an asset excluded under paragraph (a), that was given 
117.24  away, sold, or disposed of for less than fair market value 
117.25  within the 60 months preceding application for general 
117.26  assistance medical care or during the period of eligibility.  
117.27  Any transfer described in this paragraph shall be presumed to 
117.28  have been for the purpose of establishing eligibility for 
117.29  general assistance medical care, unless the individual furnishes 
117.30  convincing evidence to establish that the transaction was 
117.31  exclusively for another purpose.  For purposes of this 
117.32  paragraph, the value of the asset or interest shall be the fair 
117.33  market value at the time it was given away, sold, or disposed 
117.34  of, less the amount of compensation received.  For any 
117.35  uncompensated transfer, the number of months of ineligibility, 
117.36  including partial months, shall be calculated by dividing the 
118.1   uncompensated transfer amount by the average monthly per person 
118.2   payment made by the medical assistance program to skilled 
118.3   nursing facilities for the previous calendar year.  The 
118.4   individual shall remain ineligible until this fixed period has 
118.5   expired.  The period of ineligibility may exceed 30 months, and 
118.6   a reapplication for benefits after 30 months from the date of 
118.7   the transfer shall not result in eligibility unless and until 
118.8   the period of ineligibility has expired.  The period of 
118.9   ineligibility begins in the month the transfer was reported to 
118.10  the county agency, or if the transfer was not reported, the 
118.11  month in which the county agency discovered the transfer, 
118.12  whichever comes first.  For applicants, the period of 
118.13  ineligibility begins on the date of the first approved 
118.14  application. 
118.15     (i) When determining eligibility for any state benefits 
118.16  under this subdivision, the income and resources of all 
118.17  noncitizens shall be deemed to include their sponsor's income 
118.18  and resources as defined in the Personal Responsibility and Work 
118.19  Opportunity Reconciliation Act of 1996, title IV, Public Law 
118.20  Number 104-193, sections 421 and 422, and subsequently set out 
118.21  in federal rules. 
118.22     (j)(1) An undocumented noncitizen or a nonimmigrant is 
118.23  ineligible for general assistance medical care other than 
118.24  emergency services.  For purposes of this subdivision, a 
118.25  nonimmigrant is an individual in one or more of the classes 
118.26  listed in United States Code, title 8, section 1101(a)(15), and 
118.27  an undocumented noncitizen is an individual who resides in the 
118.28  United States without the approval or acquiescence of the 
118.29  Immigration and Naturalization Service. 
118.30     (2) This paragraph does not apply to a child under age 18, 
118.31  to a Cuban or Haitian entrant as defined in Public Law Number 
118.32  96-422, section 501(e)(1) or (2)(a), or to a noncitizen who is 
118.33  aged, blind, or disabled as defined in Code of Federal 
118.34  Regulations, title 42, sections 435.520, 435.530, 435.531, 
118.35  435.540, and 435.541, or effective October 1, 1998, to an 
118.36  individual eligible for general assistance medical care under 
119.1   paragraph (a), clause (4), who cooperates with the Immigration 
119.2   and Naturalization Service to pursue any applicable immigration 
119.3   status, including citizenship, that would qualify the individual 
119.4   for medical assistance with federal financial participation. 
119.5      (k) For purposes of paragraphs (g) and (j), "emergency 
119.6   services" has the meaning given in Code of Federal Regulations, 
119.7   title 42, section 440.255(b)(1), except that it also means 
119.8   services rendered because of suspected or actual pesticide 
119.9   poisoning. 
119.10     (l) Notwithstanding any other provision of law, a 
119.11  noncitizen who is ineligible for medical assistance due to the 
119.12  deeming of a sponsor's income and resources, is ineligible for 
119.13  general assistance medical care. 
119.14     Sec. 36.  Minnesota Statutes 2000, section 256D.03, 
119.15  subdivision 4, is amended to read: 
119.16     Subd. 4.  [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] (a) 
119.17  For a person who is eligible under subdivision 3, paragraph (a), 
119.18  clause (3), general assistance medical care covers, except as 
119.19  provided in paragraph (c): 
119.20     (1) inpatient hospital services; 
119.21     (2) outpatient hospital services; 
119.22     (3) services provided by Medicare certified rehabilitation 
119.23  agencies; 
119.24     (4) prescription drugs and other products recommended 
119.25  through the process established in section 256B.0625, 
119.26  subdivision 13; 
119.27     (5) equipment necessary to administer insulin and 
119.28  diagnostic supplies and equipment for diabetics to monitor blood 
119.29  sugar level; 
119.30     (6) eyeglasses and eye examinations provided by a physician 
119.31  or optometrist; 
119.32     (7) hearing aids; 
119.33     (8) prosthetic devices; 
119.34     (9) laboratory and X-ray services; 
119.35     (10) physician's services; 
119.36     (11) medical transportation; 
120.1      (12) chiropractic services as covered under the medical 
120.2   assistance program; 
120.3      (13) podiatric services; 
120.4      (14) dental services; 
120.5      (15) outpatient services provided by a mental health center 
120.6   or clinic that is under contract with the county board and is 
120.7   established under section 245.62; 
120.8      (16) day treatment services for mental illness provided 
120.9   under contract with the county board; 
120.10     (17) prescribed medications for persons who have been 
120.11  diagnosed as mentally ill as necessary to prevent more 
120.12  restrictive institutionalization; 
120.13     (18) psychological services, medical supplies and 
120.14  equipment, and Medicare premiums, coinsurance and deductible 
120.15  payments; 
120.16     (19) medical equipment not specifically listed in this 
120.17  paragraph when the use of the equipment will prevent the need 
120.18  for costlier services that are reimbursable under this 
120.19  subdivision; 
120.20     (20) services performed by a certified pediatric nurse 
120.21  practitioner, a certified family nurse practitioner, a certified 
120.22  adult nurse practitioner, a certified obstetric/gynecological 
120.23  nurse practitioner, a certified neonatal nurse practitioner, or 
120.24  a certified geriatric nurse practitioner in independent 
120.25  practice, if (1) the service is otherwise covered under this 
120.26  chapter as a physician service, (2) the service provided on an 
120.27  inpatient basis is not included as part of the cost for 
120.28  inpatient services included in the operating payment rate, and 
120.29  (3) the service is within the scope of practice of the nurse 
120.30  practitioner's license as a registered nurse, as defined in 
120.31  section 148.171; 
120.32     (21) services of a certified public health nurse or a 
120.33  registered nurse practicing in a public health nursing clinic 
120.34  that is a department of, or that operates under the direct 
120.35  authority of, a unit of government, if the service is within the 
120.36  scope of practice of the public health nurse's license as a 
121.1   registered nurse, as defined in section 148.171; and 
121.2      (22) telemedicine consultations, to the extent they are 
121.3   covered under section 256B.0625, subdivision 3b.  
121.4      (b) Except as provided in paragraph (c), for a recipient 
121.5   who is eligible under subdivision 3, paragraph (a), clause (1) 
121.6   or (2), general assistance medical care covers the services 
121.7   listed in paragraph (a) with the exception of special 
121.8   transportation services. 
121.9      (c) Gender reassignment surgery and related services are 
121.10  not covered services under this subdivision unless the 
121.11  individual began receiving gender reassignment services prior to 
121.12  July 1, 1995.  
121.13     (d) In order to contain costs, the commissioner of human 
121.14  services shall select vendors of medical care who can provide 
121.15  the most economical care consistent with high medical standards 
121.16  and shall where possible contract with organizations on a 
121.17  prepaid capitation basis to provide these services.  The 
121.18  commissioner shall consider proposals by counties and vendors 
121.19  for prepaid health plans, competitive bidding programs, block 
121.20  grants, or other vendor payment mechanisms designed to provide 
121.21  services in an economical manner or to control utilization, with 
121.22  safeguards to ensure that necessary services are provided.  
121.23  Before implementing prepaid programs in counties with a county 
121.24  operated or affiliated public teaching hospital or a hospital or 
121.25  clinic operated by the University of Minnesota, the commissioner 
121.26  shall consider the risks the prepaid program creates for the 
121.27  hospital and allow the county or hospital the opportunity to 
121.28  participate in the program in a manner that reflects the risk of 
121.29  adverse selection and the nature of the patients served by the 
121.30  hospital, provided the terms of participation in the program are 
121.31  competitive with the terms of other participants considering the 
121.32  nature of the population served.  Payment for services provided 
121.33  pursuant to this subdivision shall be as provided to medical 
121.34  assistance vendors of these services under sections 256B.02, 
121.35  subdivision 8, and 256B.0625.  For payments made during fiscal 
121.36  year 1990 and later years, the commissioner shall consult with 
122.1   an independent actuary in establishing prepayment rates, but 
122.2   shall retain final control over the rate methodology.  Payment 
122.3   rates established by the commissioner must be within the limits 
122.4   of available appropriations.  Notwithstanding the provisions of 
122.5   subdivision 3, an individual who becomes ineligible for general 
122.6   assistance medical care because of failure to submit income 
122.7   reports or recertification forms in a timely manner, shall 
122.8   remain enrolled in the prepaid health plan and shall remain 
122.9   eligible for general assistance medical care coverage through 
122.10  the last day of the month in which the enrollee became 
122.11  ineligible for general assistance medical care. 
122.12     (e) There shall be no copayment required of any recipient 
122.13  of benefits for any services provided under this subdivision.  A 
122.14  hospital receiving a reduced payment as a result of this section 
122.15  may apply the unpaid balance toward satisfaction of the 
122.16  hospital's bad debts. 
122.17     (f) Any county may, from its own resources, provide medical 
122.18  payments for which state payments are not made. 
122.19     (g) Chemical dependency services that are reimbursed under 
122.20  chapter 254B must not be reimbursed under general assistance 
122.21  medical care. 
122.22     (h) The maximum payment for new vendors enrolled in the 
122.23  general assistance medical care program after the base year 
122.24  shall be determined from the average usual and customary charge 
122.25  of the same vendor type enrolled in the base year. 
122.26     (i) The conditions of payment for services under this 
122.27  subdivision are the same as the conditions specified in rules 
122.28  adopted under chapter 256B governing the medical assistance 
122.29  program, unless otherwise provided by statute or rule. 
122.30     Sec. 37.  Minnesota Statutes 2000, section 256J.31, 
122.31  subdivision 12, is amended to read: 
122.32     Subd. 12.  [RIGHT TO DISCONTINUE CASH ASSISTANCE.] A 
122.33  participant who is not in vendor payment status may discontinue 
122.34  receipt of the cash assistance portion of the MFIP assistance 
122.35  grant and retain eligibility for child care assistance under 
122.36  section 119B.05 and for medical assistance under sections 
123.1   256B.055, subdivision 3a, and 256B.0635.  For the months a 
123.2   participant chooses to discontinue the receipt of the cash 
123.3   portion of the MFIP grant, the assistance unit accrues months of 
123.4   eligibility to be applied toward eligibility for child care 
123.5   under section 119B.05 and for medical assistance under sections 
123.6   256B.055, subdivision 3a, and 256B.0635. 
123.7      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
123.8      Sec. 38.  Minnesota Statutes 2000, section 256K.03, 
123.9   subdivision 1, is amended to read: 
123.10     Subdivision 1.  [NOTIFICATION OF PROGRAM.] Except for the 
123.11  provisions in this section, the provisions for the MFIP 
123.12  application process shall be followed.  Within two days after 
123.13  receipt of a completed combined application form, the county 
123.14  agency must refer to the provider the applicant who meets the 
123.15  conditions under section 256K.02, and notify the applicant in 
123.16  writing of the program including the following provisions: 
123.17     (1) notification that, as part of the application process, 
123.18  applicants are required to attend orientation, to be followed 
123.19  immediately by a job search; 
123.20     (2) the program provider, the date, time, and location of 
123.21  the scheduled program orientation; 
123.22     (3) the procedures for qualifying for and receiving 
123.23  benefits under the program; 
123.24     (4) the immediate availability of supportive services, 
123.25  including, but not limited to, child care, transportation, 
123.26  medical assistance, and other work-related aid; and 
123.27     (5) the rights, responsibilities, and obligations of 
123.28  participants in the program, including, but not limited to, the 
123.29  grounds for exemptions and deferrals, the consequences for 
123.30  refusing or failing to participate fully, and the appeal process.
123.31     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
123.32     Sec. 39.  Minnesota Statutes 2000, section 256K.07, is 
123.33  amended to read: 
123.34     256K.07 [ELIGIBILITY FOR FOOD STAMPS, MEDICAL ASSISTANCE, 
123.35  AND CHILD CARE.] 
123.36     The participant shall be treated as an MFIP recipient for 
124.1   food stamps, medical assistance, and child care eligibility 
124.2   purposes.  The participant who leaves the program as a result of 
124.3   increased earnings from employment shall be eligible for 
124.4   transitional medical assistance and child care without regard to 
124.5   MFIP receipt in three of the six months preceding ineligibility. 
124.6      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
124.7      Sec. 40.  Minnesota Statutes 2000, section 256L.06, 
124.8   subdivision 3, is amended to read: 
124.9      Subd. 3.  [ADMINISTRATION AND COMMISSIONER'S DUTIES.] (a) 
124.10  Premiums are dedicated to the commissioner for MinnesotaCare. 
124.11     (b) The commissioner shall develop and implement procedures 
124.12  to:  (1) require enrollees to report changes in income; (2) 
124.13  adjust sliding scale premium payments, based upon changes in 
124.14  enrollee income; and (3) disenroll enrollees from MinnesotaCare 
124.15  for failure to pay required premiums.  Failure to pay includes 
124.16  payment with a dishonored check, a returned automatic bank 
124.17  withdrawal, or a refused credit card or debit card payment.  The 
124.18  commissioner may demand a guaranteed form of payment, including 
124.19  a cashier's check or a money order, as the only means to replace 
124.20  a dishonored, returned, or refused payment. 
124.21     (c) Premiums are calculated on a calendar month basis and 
124.22  may be paid on a monthly, quarterly, or annual basis, with the 
124.23  first payment due upon notice from the commissioner of the 
124.24  premium amount required.  The commissioner shall inform 
124.25  applicants and enrollees of these premium payment options. 
124.26  Premium payment is required before enrollment is complete and to 
124.27  maintain eligibility in MinnesotaCare.  
124.28     (d) Nonpayment of the premium will result in disenrollment 
124.29  from the plan within one calendar month after the due date 
124.30  effective for the calendar month for which the premium was due.  
124.31  Persons disenrolled for nonpayment or who voluntarily terminate 
124.32  coverage from the program may not reenroll until four calendar 
124.33  months have elapsed.  Persons disenrolled for nonpayment who pay 
124.34  all past due premiums as well as current premiums due, including 
124.35  premiums due for the period of disenrollment, within 20 days of 
124.36  disenrollment, shall be reenrolled retroactively to the first 
125.1   day of disenrollment.  Persons disenrolled for nonpayment or who 
125.2   voluntarily terminate coverage from the program may not reenroll 
125.3   for four calendar months unless the person demonstrates good 
125.4   cause for nonpayment.  Good cause does not exist if a person 
125.5   chooses to pay other family expenses instead of the premium.  
125.6   The commissioner shall define good cause in rule. 
125.7      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
125.8      Sec. 41.  Minnesota Statutes 2000, section 256L.12, 
125.9   subdivision 9, is amended to read: 
125.10     Subd. 9.  [RATE SETTING.] Rates will be prospective, per 
125.11  capita, where possible.  The commissioner may allow health plans 
125.12  to arrange for inpatient hospital services on a risk or nonrisk 
125.13  basis.  The commissioner shall consult with an independent 
125.14  actuary to determine appropriate rates.  Rates established by 
125.15  the commissioner must be within the limits of available 
125.16  appropriations. 
125.17     Sec. 42.  Minnesota Statutes 2000, section 256L.12, is 
125.18  amended by adding a subdivision to read: 
125.19     Subd. 11.  [COVERAGE AT INDIAN HEALTH SERVICE 
125.20  FACILITIES.] For American Indian enrollees of MinnesotaCare, 
125.21  MinnesotaCare shall cover health care services provided at 
125.22  Indian Health Service facilities and facilities operated by a 
125.23  tribe or tribal organization under funding authorized by United 
125.24  States Code, title 25, sections 450f to 450n, or title III of 
125.25  the Indian Self-Determination and Education Act, Public Law 
125.26  Number 93-638, if those services would otherwise be covered 
125.27  under section 256L.03.  Payments for services provided under 
125.28  this subdivision shall be made on a fee-for-service basis, and 
125.29  may, at the option of the tribe or organization, be made at the 
125.30  rates authorized under sections 256.969, subdivision 16, and 
125.31  256B.0625, subdivision 34, for those MinnesotaCare enrollees 
125.32  eligible for coverage at medical assistance rates.  For purposes 
125.33  of this subdivision, "American Indian" has the meaning given to 
125.34  persons to whom services will be provided for in the Code of 
125.35  Federal Regulations, title 42, section 36.12. 
125.36     Sec. 43.  Minnesota Statutes 2000, section 256L.16, is 
126.1   amended to read: 
126.2      256L.16 [PAYMENT RATES; SERVICES FOR FAMILIES AND CHILDREN 
126.3   UNDER THE MINNESOTACARE HEALTH CARE REFORM WAIVER.] 
126.4      Section 256L.11, subdivision 2, shall not apply to services 
126.5   provided to children families with children who are eligible to 
126.6   receive expanded services according to section 256L.03, 
126.7   subdivision 1a 256L.04, subdivision 1, paragraph (a). 
126.8      Sec. 44.  Laws 1995, chapter 178, article 2, section 36, is 
126.9   amended to read: 
126.10     Sec. 36.  [EMPOWERMENT ZONES; ADMINISTRATIVE SIMPLIFICATION 
126.11  OF WELFARE LAWS.] 
126.12     (a) The commissioner of human services shall make 
126.13  recommendations to effectuate the changes in federal laws and 
126.14  regulations, state laws and rules, and the state plan to improve 
126.15  the administrative efficiency of the aid to families with 
126.16  dependent children, general assistance, work readiness, family 
126.17  general assistance, medical assistance, general assistance 
126.18  medical care, and food stamp programs.  At a minimum, the 
126.19  following administrative standards and procedures must be 
126.20  changed. 
126.21     The commissioner shall: 
126.22     (1) require income or eligibility reviews no more 
126.23  frequently than annually for cases in which income is normally 
126.24  invariant, as in aid to families with dependent children cases 
126.25  where the only source of household income is Supplemental Social 
126.26  Security Income; 
126.27     (2) permit households to report income annually when the 
126.28  source of income is excluded, such as a minor's earnings; 
126.29     (3) require income or eligibility reviews no more 
126.30  frequently than annually for extended medical assistance cases; 
126.31     (4) require income or eligibility reviews no more 
126.32  frequently than annually for a medical assistance postpartum 
126.33  client, where the client previously had eligibility under a 
126.34  different basis prior to pregnancy or if other household members 
126.35  have eligibility with the same income/basis that applies to the 
126.36  client; 
127.1      (5) (4) permit all income or eligibility reviews for foster 
127.2   care medical assistance cases to use the short application form; 
127.3   and 
127.4      (6) (5) make dependent care expenses declaratory for 
127.5   medical assistance; and 
127.6      (7) permit households to only report gifts worth $100 or 
127.7   more per month. 
127.8      (b) The county's administrative savings resulting from 
127.9   these changes may be allocated to fund any lawful purpose. 
127.10     (c) The recommendations must be provided in a report to the 
127.11  chairs of the appropriate legislative committees by August 1, 
127.12  1995.  The recommendations must include a list of the 
127.13  administrative standards and procedures that require approval by 
127.14  the federal government before implementation, and also which 
127.15  administrative simplification standards and procedures may be 
127.16  implemented by a county prior to receiving a federal waiver. 
127.17     (d) The commissioner shall seek the necessary waivers from 
127.18  the federal government as soon as possible to implement the 
127.19  administrative simplification standards and procedures. 
127.20     Sec. 45.  Laws 1999, chapter 245, article 4, section 110, 
127.21  is amended to read: 
127.22     Sec. 110.  [PROGRAMS FOR SENIOR CITIZENS.] 
127.23     The commissioner of human services shall study the 
127.24  eligibility criteria of and benefits provided to persons age 65 
127.25  and over through the array of cash assistance and health care 
127.26  programs administered by the department, and the extent to which 
127.27  these programs can be combined, simplified, or coordinated to 
127.28  reduce administrative costs and improve access.  The 
127.29  commissioner shall also study potential barriers to enrollment 
127.30  for low-income seniors who would otherwise deplete resources 
127.31  necessary to maintain independent community living.  At a 
127.32  minimum, the study must include an evaluation of asset 
127.33  requirements and enrollment sites.  The commissioner shall 
127.34  report study findings and recommendations to the legislature by 
127.35  June September 30, 2001. 
127.36     Sec. 46.  [NOTICE OF NEW PREMIUM SCHEDULE.] 
128.1      The commissioner of human services shall provide medical 
128.2   assistance enrollees subject to premiums as employed persons 
128.3   with disabilities with prior notice of the new premium schedule 
128.4   established under the section 13 amendment to section 256B.057, 
128.5   subdivision 9, paragraph (c).  This notice must be provided at 
128.6   least two months before the month in which the first premium 
128.7   payment under the new schedule is due. 
128.8      Sec. 47.  [MEDICATION THERAPY MANAGEMENT PILOT PROGRAM.] 
128.9      Subdivision 1.  [ESTABLISHMENT.] The commissioner of human 
128.10  services, in consultation with the advisory committee 
128.11  established under subdivision 2, shall implement, beginning July 
128.12  1, 2001, a two-year medication therapy management pilot program 
128.13  for medical assistance enrollees.  Medication therapy management 
128.14  must be provided by teams of physicians and pharmacists working 
128.15  in collaborative practice, as defined in Minnesota Statutes, 
128.16  section 151.01, subdivision 27, clause (5), to help patients use 
128.17  medications safely and effectively.  The commissioner may enroll 
128.18  individual pharmacists who participate in the pilot program as 
128.19  medical assistance providers and shall seek to ensure that 
128.20  participating pharmacists represent all geographic regions of 
128.21  the state. 
128.22     Subd. 2.  [ADVISORY COMMITTEE.] The commissioner shall 
128.23  establish a ten-member medication therapy management advisory 
128.24  committee, to advise the commissioner in the implementation and 
128.25  administration of the program and the development of eligibility 
128.26  criteria for enrollees and providers and requirements for 
128.27  collaborative practice agreements.  The committee shall be 
128.28  comprised of:  two licensed physicians; two licensed 
128.29  pharmacists; two consumer representatives; three members with 
128.30  expertise in the area of medication therapy management, who may 
128.31  be licensed physicians or licensed pharmacists; and a 
128.32  representative of the commissioner, who shall serve as an 
128.33  ex-officio nonvoting member.  In appointing members who are not 
128.34  consumer representatives, the commissioner shall consider 
128.35  recommendations of associations representing pharmacy and 
128.36  medical practitioners.  The committee is governed by section 
129.1   15.059, except that committee members do not receive 
129.2   compensation or reimbursement for expenses. 
129.3      Subd. 3.  [EVALUATION.] The commissioner shall evaluate the 
129.4   cost-effectiveness of the pilot program and its effect on 
129.5   patient outcomes and quality of care, and shall report to the 
129.6   legislature by December 15, 2003.  The commissioner may contract 
129.7   with a vendor to conduct the evaluation. 
129.8      Sec. 48.  [REGULATORY SIMPLIFICATION FOR STATE HEALTH CARE 
129.9   PROGRAM PROVIDERS.] 
129.10     The commissioner of human services, in consultation with 
129.11  providers participating in state health care programs, shall 
129.12  identify nonfinancial barriers to increased provider enrollment 
129.13  and provider retention in state health care programs, and shall 
129.14  implement procedures to address these barriers.  Areas to be 
129.15  examined by the commissioner shall include, but are not limited 
129.16  to, regulatory complexity and inconsistencies between state 
129.17  health care programs, provider requirements, provision of 
129.18  technical assistance to providers, responsiveness to provider 
129.19  inquiries and complaints, claims processing turnaround times, 
129.20  and policies for rejecting provider claims.  The commissioner 
129.21  shall report to the legislature by February 15, 2002, on any 
129.22  changes to the administration of state health care programs that 
129.23  will be implemented as a result of the study, and present 
129.24  recommendations for any necessary changes in state law. 
129.25     Sec. 49.  [REPEALER.] 
129.26     (a) Minnesota Statutes 2000, section 256B.037, subdivision 
129.27  5, is repealed effective January 1, 2002. 
129.28     (b) Minnesota Statutes 2000, section 256B.0635, subdivision 
129.29  3, is repealed effective July 1, 2002. 
129.30                             ARTICLE 3 
129.31                   CONTINUING CARE AND HOME CARE 
129.32     Section 1.  Minnesota Statutes 2000, section 245A.13, 
129.33  subdivision 7, is amended to read: 
129.34     Subd. 7.  [RATE RECOMMENDATION.] The commissioner of human 
129.35  services may review rates of a residential program participating 
129.36  in the medical assistance program which is in receivership and 
130.1   that has needs or deficiencies documented by the department of 
130.2   health or the department of human services.  If the commissioner 
130.3   of human services determines that a review of the rate 
130.4   established under section 256B.501 sections 256B.5012 and 
130.5   256B.5013 is needed, the commissioner shall: 
130.6      (1) review the order or determination that cites the 
130.7   deficiencies or needs; and 
130.8      (2) determine the need for additional staff, additional 
130.9   annual hours by type of employee, and additional consultants, 
130.10  services, supplies, equipment, repairs, or capital assets 
130.11  necessary to satisfy the needs or deficiencies. 
130.12     Sec. 2.  Minnesota Statutes 2000, section 245A.13, 
130.13  subdivision 8, is amended to read: 
130.14     Subd. 8.  [ADJUSTMENT TO THE RATE.] Upon review of rates 
130.15  under subdivision 7, the commissioner may adjust the residential 
130.16  program's payment rate.  The commissioner shall review the 
130.17  circumstances, together with the residential program cost report 
130.18  program's most recent income and expense report, to determine 
130.19  whether or not the deficiencies or needs can be corrected or met 
130.20  by reallocating residential program staff, costs, revenues, 
130.21  or any other resources including any investments, efficiency 
130.22  incentives, or allowances.  If the commissioner determines that 
130.23  any deficiency cannot be corrected or the need cannot be met 
130.24  with the payment rate currently being paid, the commissioner 
130.25  shall determine the payment rate adjustment by dividing the 
130.26  additional annual costs established during the commissioner's 
130.27  review by the residential program's actual resident days from 
130.28  the most recent desk-audited cost income and expense report or 
130.29  the estimated resident days in the projected receivership 
130.30  period.  The payment rate adjustment must meet the conditions in 
130.31  Minnesota Rules, parts 9553.0010 to 9553.0080, and remains in 
130.32  effect during the period of the receivership or until another 
130.33  date set by the commissioner.  Upon the subsequent sale, 
130.34  closure, or transfer of the residential program, the 
130.35  commissioner may recover amounts that were paid as payment rate 
130.36  adjustments under this subdivision.  This recovery shall be 
131.1   determined through a review of actual costs and resident days in 
131.2   the receivership period.  The costs the commissioner finds to be 
131.3   allowable shall be divided by the actual resident days for the 
131.4   receivership period.  This rate shall be compared to the rate 
131.5   paid throughout the receivership period, with the difference, 
131.6   multiplied by resident days, being the amount to be repaid to 
131.7   the commissioner.  Allowable costs shall be determined by the 
131.8   commissioner as those ordinary, necessary, and related to 
131.9   resident care by prudent and cost-conscious management.  The 
131.10  buyer or transferee shall repay this amount to the commissioner 
131.11  within 60 days after the commissioner notifies the buyer or 
131.12  transferee of the obligation to repay.  This provision does not 
131.13  limit the liability of the seller to the commissioner pursuant 
131.14  to section 256B.0641. 
131.15     Sec. 3.  Minnesota Statutes 2000, section 252.275, 
131.16  subdivision 4b, is amended to read: 
131.17     Subd. 4b.  [GUARANTEED FLOOR.] Each county with an original 
131.18  allocation for the preceding year that is equal to or less than 
131.19  the guaranteed floor minimum index shall have a guaranteed floor 
131.20  equal to its original allocation for the preceding year.  Each 
131.21  county with an original allocation for the preceding year that 
131.22  is greater than the guaranteed floor minimum index shall have a 
131.23  guaranteed floor equal to the lesser of clause (1) or (2): 
131.24     (1) the county's original allocation for the preceding 
131.25  year; or 
131.26     (2) 70 percent of the county's reported expenditures 
131.27  eligible for reimbursement during the 12 months ending on June 
131.28  30 of the preceding calendar year. 
131.29     For calendar year 1993, the guaranteed floor minimum index 
131.30  shall be $20,000.  For each subsequent year, the index shall be 
131.31  adjusted by the projected change in the average value in the 
131.32  United States Department of Labor Bureau of Labor Statistics 
131.33  consumer price index (all urban) for that year. 
131.34     Notwithstanding this subdivision, no county shall be 
131.35  allocated a guaranteed floor of less than $1,000. 
131.36     When the amount of funds available for allocation is less 
132.1   than the amount available in the previous year, each county's 
132.2   previous year allocation shall be reduced in proportion to the 
132.3   reduction in the statewide funding, to establish each county's 
132.4   guaranteed floor. 
132.5      Sec. 4.  Minnesota Statutes 2000, section 254B.02, 
132.6   subdivision 3, is amended to read: 
132.7      Subd. 3.  [RESERVE ACCOUNT.] The commissioner shall 
132.8   allocate money from the reserve account to counties that, during 
132.9   the current fiscal year, have met or exceeded the base level of 
132.10  expenditures for eligible chemical dependency services from 
132.11  local money.  The commissioner shall establish the base level 
132.12  for fiscal year 1988 as the amount of local money used for 
132.13  eligible services in calendar year 1986.  In later years, the 
132.14  base level must be increased in the same proportion as state 
132.15  appropriations to implement Laws 1986, chapter 394, sections 8 
132.16  to 20, are increased.  The base level must be decreased if the 
132.17  fund balance from which allocations are made under section 
132.18  254B.02, subdivision 1, is decreased in later years.  The local 
132.19  match rate for the reserve account is the same rate as applied 
132.20  to the initial allocation.  Reserve account payments must not be 
132.21  included when calculating the county adjustments made according 
132.22  to subdivision 2.  For counties providing medical assistance or 
132.23  general assistance medical care through managed care plans on 
132.24  January 1, 1996, the base year is fiscal year 1995.  For 
132.25  counties beginning provision of managed care after January 1, 
132.26  1996, the base year is the most recent fiscal year before 
132.27  enrollment in managed care begins.  For counties providing 
132.28  managed care, the base level will be increased or decreased in 
132.29  proportion to changes in the fund balance from which allocations 
132.30  are made under subdivision 2, but will be additionally increased 
132.31  or decreased in proportion to the change in county adjusted 
132.32  population made in subdivision 1, paragraphs (b) and 
132.33  (c).  Effective July 1, 2001, funds deposited in the reserve 
132.34  account in excess of those needed to meet obligations for 
132.35  services provided during the biennium under this section and 
132.36  sections 254B.06 and 254B.09 shall cancel to the general fund. 
133.1      Sec. 5.  Minnesota Statutes 2000, section 254B.03, 
133.2   subdivision 1, is amended to read: 
133.3      Subdivision 1.  [LOCAL AGENCY DUTIES.] (a) Every local 
133.4   agency shall provide chemical dependency services to persons 
133.5   residing within its jurisdiction who meet criteria established 
133.6   by the commissioner for placement in a chemical dependency 
133.7   residential or nonresidential treatment service.  Chemical 
133.8   dependency money must be administered by the local agencies 
133.9   according to law and rules adopted by the commissioner under 
133.10  sections 14.001 to 14.69. 
133.11     (b) In order to contain costs, the county board shall, with 
133.12  the approval of the commissioner of human services, select 
133.13  eligible vendors of chemical dependency services who can provide 
133.14  economical and appropriate treatment.  Unless the local agency 
133.15  is a social services department directly administered by a 
133.16  county or human services board, the local agency shall not be an 
133.17  eligible vendor under section 254B.05.  The commissioner may 
133.18  approve proposals from county boards to provide services in an 
133.19  economical manner or to control utilization, with safeguards to 
133.20  ensure that necessary services are provided.  If a county 
133.21  implements a demonstration or experimental medical services 
133.22  funding plan, the commissioner shall transfer the money as 
133.23  appropriate.  If a county selects a vendor located in another 
133.24  state, the county shall ensure that the vendor is in compliance 
133.25  with the rules governing licensure of programs located in the 
133.26  state. 
133.27     (c) The calendar year 1998 2002 rate for vendors may not 
133.28  increase more than three two percent above the rate approved in 
133.29  effect on January 1, 1997 2001.  The calendar year 1999 2003 
133.30  rate for vendors may not increase more than three two percent 
133.31  above the rate in effect on January 1, 1998 2002.  The calendar 
133.32  years 2004 and 2005 rates may not exceed the rate in effect on 
133.33  January 1, 2003. 
133.34     (d) A culturally specific vendor that provides assessments 
133.35  under a variance under Minnesota Rules, part 9530.6610, shall be 
133.36  allowed to provide assessment services to persons not covered by 
134.1   the variance. 
134.2      Sec. 6.  Minnesota Statutes 2000, section 254B.04, 
134.3   subdivision 1, is amended to read: 
134.4      Subdivision 1.  [ELIGIBILITY.] (a) Persons eligible for 
134.5   benefits under Code of Federal Regulations, title 25, part 20, 
134.6   persons eligible for medical assistance benefits under sections 
134.7   256B.055, 256B.056, and 256B.057, subdivisions 1, 2, 5, and 6, 
134.8   or who meet the income standards of section 256B.056, 
134.9   subdivision 4, and persons eligible for general assistance 
134.10  medical care under section 256D.03, subdivision 3, are entitled 
134.11  to chemical dependency fund services.  State money appropriated 
134.12  for this paragraph must be placed in a separate account 
134.13  established for this purpose.  
134.14     Persons with dependent children who are determined to be in 
134.15  need of chemical dependency treatment pursuant to an assessment 
134.16  under section 626.556, subdivision 10, or a case plan under 
134.17  section 260C.201, subdivision 6, or 260C.212, shall be assisted 
134.18  by the local agency to access needed treatment services.  
134.19  Treatment services must be appropriate for the individual or 
134.20  family, which may include long-term care treatment or treatment 
134.21  in a facility that allows the dependent children to stay in the 
134.22  treatment facility.  The county shall pay for out-of-home 
134.23  placement costs, if applicable. 
134.24     (b) A person not entitled to services under paragraph (a), 
134.25  but with family income that is less than the 1997 federal 
134.26  poverty guidelines equivalent of 60 percent of the state median 
134.27  income for a family of like size and composition, shall be 
134.28  eligible to receive chemical dependency fund services within the 
134.29  limit of funds available after persons entitled to services 
134.30  under paragraph (a) have been served appropriated for this group 
134.31  for the fiscal year.  If notified by the state agency of limited 
134.32  funds, a county must give preferential treatment to persons with 
134.33  dependent children who are in need of chemical dependency 
134.34  treatment pursuant to an assessment under section 626.556, 
134.35  subdivision 10, or a case plan under section 260C.201, 
134.36  subdivision 6, or 260C.212.  A county may spend money from its 
135.1   own sources to serve persons under this paragraph.  State money 
135.2   appropriated for this paragraph must be placed in a separate 
135.3   account established for this purpose. 
135.4      (c) Persons whose income is between the 1997 federal 
135.5   poverty guidelines equivalent of 60 percent and 115 percent of 
135.6   the state median income shall be eligible for chemical 
135.7   dependency services on a sliding fee basis, within the limit of 
135.8   funds available, after persons entitled to services under 
135.9   paragraph (a) and persons eligible for services under paragraph 
135.10  (b) have been served appropriated for this group for the fiscal 
135.11  year.  Persons eligible under this paragraph must contribute to 
135.12  the cost of services according to the sliding fee scale 
135.13  established under subdivision 3.  A county may spend money from 
135.14  its own sources to provide services to persons under this 
135.15  paragraph.  State money appropriated for this paragraph must be 
135.16  placed in a separate account established for this purpose. 
135.17     Sec. 7.  Minnesota Statutes 2000, section 254B.09, is 
135.18  amended by adding a subdivision to read: 
135.19     Subd. 8.  [PAYMENTS TO IMPROVE SERVICES TO AMERICAN 
135.20  INDIANS.] The commissioner may set rates for chemical dependency 
135.21  services according to the American Indian Health Improvement 
135.22  Act, Public Law Number 94-437, for eligible vendors.  These 
135.23  rates shall supersede rates set in county purchase of service 
135.24  agreements when payments are made on behalf of clients eligible 
135.25  according to Public Law Number 94-437. 
135.26     Sec. 8.  Minnesota Statutes 2000, section 256.01, is 
135.27  amended by adding a subdivision to read: 
135.28     Subd. 19.  [GRANTS FOR CASE MANAGEMENT SERVICES TO PERSONS 
135.29  WITH HIV OR AIDS.] The commissioner may award grants to eligible 
135.30  vendors for the development, implementation, and evaluation of 
135.31  case management services for individuals infected with the human 
135.32  immunodeficiency virus.  HIV/AIDs case management services will 
135.33  be provided to increase access to cost effective health care 
135.34  services, to reduce the risk of HIV transmission, to ensure that 
135.35  basic client needs are met, and to increase client access to 
135.36  needed community supports or services. 
136.1      Sec. 9.  Minnesota Statutes 2000, section 256.476, 
136.2   subdivision 1, is amended to read: 
136.3      Subdivision 1.  [PURPOSE AND GOALS.] The commissioner of 
136.4   human services shall establish a consumer support grant 
136.5   program to assist for individuals with functional limitations 
136.6   and their families in purchasing and securing supports which the 
136.7   individuals need to live as independently and productively in 
136.8   the community as possible who wish to purchase and secure their 
136.9   own supports.  The commissioner and local agencies shall jointly 
136.10  develop an implementation plan which must include a way to 
136.11  resolve the issues related to county liability.  The program 
136.12  shall: 
136.13     (1) make support grants available to individuals or 
136.14  families as an effective alternative to existing programs and 
136.15  services, such as the developmental disability family support 
136.16  program, the alternative care program, personal care attendant 
136.17  services, home health aide services, and private duty nursing 
136.18  facility services; 
136.19     (2) provide consumers more control, flexibility, and 
136.20  responsibility over the needed supports their services and 
136.21  supports; 
136.22     (3) promote local program management and decision making; 
136.23  and 
136.24     (4) encourage the use of informal and typical community 
136.25  supports. 
136.26     Sec. 10.  Minnesota Statutes 2000, section 256.476, 
136.27  subdivision 2, is amended to read: 
136.28     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
136.29  following terms have the meanings given them: 
136.30     (a) "County board" means the county board of commissioners 
136.31  for the county of financial responsibility as defined in section 
136.32  256G.02, subdivision 4, or its designated representative.  When 
136.33  a human services board has been established under sections 
136.34  402.01 to 402.10, it shall be considered the county board for 
136.35  the purposes of this section. 
136.36     (b) "Family" means the person's birth parents, adoptive 
137.1   parents or stepparents, siblings or stepsiblings, children or 
137.2   stepchildren, grandparents, grandchildren, niece, nephew, aunt, 
137.3   uncle, or spouse.  For the purposes of this section, a family 
137.4   member is at least 18 years of age. 
137.5      (c) "Functional limitations" means the long-term inability 
137.6   to perform an activity or task in one or more areas of major 
137.7   life activity, including self-care, understanding and use of 
137.8   language, learning, mobility, self-direction, and capacity for 
137.9   independent living.  For the purpose of this section, the 
137.10  inability to perform an activity or task results from a mental, 
137.11  emotional, psychological, sensory, or physical disability, 
137.12  condition, or illness. 
137.13     (d) "Informed choice" means a voluntary decision made by 
137.14  the person or the person's legal representative, after becoming 
137.15  familiarized with the alternatives to: 
137.16     (1) select a preferred alternative from a number of 
137.17  feasible alternatives; 
137.18     (2) select an alternative which may be developed in the 
137.19  future; and 
137.20     (3) refuse any or all alternatives. 
137.21     (e) "Local agency" means the local agency authorized by the 
137.22  county board to carry out the provisions of this section. 
137.23     (f) "Person" or "persons" means a person or persons meeting 
137.24  the eligibility criteria in subdivision 3. 
137.25     (g) "Authorized representative" means an individual 
137.26  designated by the person or their legal representative to act on 
137.27  their behalf.  This individual may be a family member, guardian, 
137.28  representative payee, or other individual designated by the 
137.29  person or their legal representative, if any, to assist in 
137.30  purchasing and arranging for supports.  For the purposes of this 
137.31  section, an authorized representative is at least 18 years of 
137.32  age. 
137.33     (h) "Screening" means the screening of a person's service 
137.34  needs under sections 256B.0911 and 256B.092. 
137.35     (i) "Supports" means services, care, aids, home 
137.36  environmental modifications, or assistance purchased by the 
138.1   person or the person's family.  Examples of supports include 
138.2   respite care, assistance with daily living, and adaptive aids 
138.3   assistive technology.  For the purpose of this section, 
138.4   notwithstanding the provisions of section 144A.43, supports 
138.5   purchased under the consumer support program are not considered 
138.6   home care services. 
138.7      (j) "Program of origination" means the program the 
138.8   individual transferred from when approved for the consumer 
138.9   support grant program. 
138.10     Sec. 11.  Minnesota Statutes 2000, section 256.476, 
138.11  subdivision 3, is amended to read: 
138.12     Subd. 3.  [ELIGIBILITY TO APPLY FOR GRANTS.] (a) A person 
138.13  is eligible to apply for a consumer support grant if the person 
138.14  meets all of the following criteria: 
138.15     (1) the person is eligible for and has been approved to 
138.16  receive services under medical assistance as determined under 
138.17  sections 256B.055 and 256B.056 or the person is eligible for and 
138.18  has been approved to receive services under alternative care 
138.19  services as determined under section 256B.0913 or the person has 
138.20  been approved to receive a grant under the developmental 
138.21  disability family support program under section 252.32; 
138.22     (2) the person is able to direct and purchase the person's 
138.23  own care and supports, or the person has a family member, legal 
138.24  representative, or other authorized representative who can 
138.25  purchase and arrange supports on the person's behalf; 
138.26     (3) the person has functional limitations, requires ongoing 
138.27  supports to live in the community, and is at risk of or would 
138.28  continue institutionalization without such supports; and 
138.29     (4) the person will live in a home.  For the purpose of 
138.30  this section, "home" means the person's own home or home of a 
138.31  person's family member.  These homes are natural home settings 
138.32  and are not licensed by the department of health or human 
138.33  services. 
138.34     (b) Persons may not concurrently receive a consumer support 
138.35  grant if they are: 
138.36     (1) receiving home and community-based services under 
139.1   United States Code, title 42, section 1396h(c); personal care 
139.2   attendant and home health aide services under section 256B.0625; 
139.3   a developmental disability family support grant; or alternative 
139.4   care services under section 256B.0913; or 
139.5      (2) residing in an institutional or congregate care setting.
139.6      (c) A person or person's family receiving a consumer 
139.7   support grant shall not be charged a fee or premium by a local 
139.8   agency for participating in the program.  
139.9      (d) The commissioner may limit the participation of nursing 
139.10  facility residents, residents of intermediate care facilities 
139.11  for persons with mental retardation, and the recipients of 
139.12  services from federal waiver programs in the consumer support 
139.13  grant program if the participation of these individuals will 
139.14  result in an increase in the cost to the state. 
139.15     (e) The commissioner shall establish a budgeted 
139.16  appropriation each fiscal year for the consumer support grant 
139.17  program.  The number of individuals participating in the program 
139.18  will be adjusted so the total amount allocated to counties does 
139.19  not exceed the amount of the budgeted appropriation.  The 
139.20  budgeted appropriation will be adjusted annually to accommodate 
139.21  changes in demand for the consumer support grants. 
139.22     Sec. 12.  Minnesota Statutes 2000, section 256.476, 
139.23  subdivision 4, is amended to read: 
139.24     Subd. 4.  [SUPPORT GRANTS; CRITERIA AND LIMITATIONS.] (a) A 
139.25  county board may choose to participate in the consumer support 
139.26  grant program.  If a county board chooses to participate in the 
139.27  program, the local agency shall establish written procedures and 
139.28  criteria to determine the amount and use of support grants.  
139.29  These procedures must include, at least, the availability of 
139.30  respite care, assistance with daily living, and adaptive aids.  
139.31  The local agency may establish monthly or annual maximum amounts 
139.32  for grants and procedures where exceptional resources may be 
139.33  required to meet the health and safety needs of the person on a 
139.34  time-limited basis, however, the total amount awarded to each 
139.35  individual may not exceed the limits established in subdivision 
139.36  5, paragraph (f). 
140.1      (b) Support grants to a person or a person's family will be 
140.2   provided through a monthly subsidy payment and be in the form of 
140.3   cash, voucher, or direct county payment to vendor.  Support 
140.4   grant amounts must be determined by the local agency.  Each 
140.5   service and item purchased with a support grant must meet all of 
140.6   the following criteria:  
140.7      (1) it must be over and above the normal cost of caring for 
140.8   the person if the person did not have functional limitations; 
140.9      (2) it must be directly attributable to the person's 
140.10  functional limitations; 
140.11     (3) it must enable the person or the person's family to 
140.12  delay or prevent out-of-home placement of the person; and 
140.13     (4) it must be consistent with the needs identified in the 
140.14  service plan, when applicable. 
140.15     (c) Items and services purchased with support grants must 
140.16  be those for which there are no other public or private funds 
140.17  available to the person or the person's family.  Fees assessed 
140.18  to the person or the person's family for health and human 
140.19  services are not reimbursable through the grant. 
140.20     (d) In approving or denying applications, the local agency 
140.21  shall consider the following factors:  
140.22     (1) the extent and areas of the person's functional 
140.23  limitations; 
140.24     (2) the degree of need in the home environment for 
140.25  additional support; and 
140.26     (3) the potential effectiveness of the grant to maintain 
140.27  and support the person in the family environment or the person's 
140.28  own home. 
140.29     (e) At the time of application to the program or screening 
140.30  for other services, the person or the person's family shall be 
140.31  provided sufficient information to ensure an informed choice of 
140.32  alternatives by the person, the person's legal representative, 
140.33  if any, or the person's family.  The application shall be made 
140.34  to the local agency and shall specify the needs of the person 
140.35  and family, the form and amount of grant requested, the items 
140.36  and services to be reimbursed, and evidence of eligibility for 
141.1   medical assistance or alternative care program. 
141.2      (f) Upon approval of an application by the local agency and 
141.3   agreement on a support plan for the person or person's family, 
141.4   the local agency shall make grants to the person or the person's 
141.5   family.  The grant shall be in an amount for the direct costs of 
141.6   the services or supports outlined in the service agreement.  
141.7      (g) Reimbursable costs shall not include costs for 
141.8   resources already available, such as special education classes, 
141.9   day training and habilitation, case management, other services 
141.10  to which the person is entitled, medical costs covered by 
141.11  insurance or other health programs, or other resources usually 
141.12  available at no cost to the person or the person's family. 
141.13     (h) The state of Minnesota, the county boards participating 
141.14  in the consumer support grant program, or the agencies acting on 
141.15  behalf of the county boards in the implementation and 
141.16  administration of the consumer support grant program shall not 
141.17  be liable for damages, injuries, or liabilities sustained 
141.18  through the purchase of support by the individual, the 
141.19  individual's family, or the authorized representative under this 
141.20  section with funds received through the consumer support grant 
141.21  program.  Liabilities include but are not limited to:  workers' 
141.22  compensation liability, the Federal Insurance Contributions Act 
141.23  (FICA), or the Federal Unemployment Tax Act (FUTA).  For 
141.24  purposes of this section, participating county boards and 
141.25  agencies acting on behalf of county boards are exempt from the 
141.26  provisions of section 268.04. 
141.27     Sec. 13.  Minnesota Statutes 2000, section 256.476, 
141.28  subdivision 5, is amended to read: 
141.29     Subd. 5.  [REIMBURSEMENT, ALLOCATIONS, AND REPORTING.] (a) 
141.30  For the purpose of transferring persons to the consumer support 
141.31  grant program from specific programs or services, such as the 
141.32  developmental disability family support program and alternative 
141.33  care program, personal care attendant assistant services, home 
141.34  health aide services, or nursing facility private duty nursing 
141.35  services, the amount of funds transferred by the commissioner 
141.36  between the developmental disability family support program 
142.1   account, the alternative care account, the medical assistance 
142.2   account, or the consumer support grant account shall be based on 
142.3   each county's participation in transferring persons to the 
142.4   consumer support grant program from those programs and services. 
142.5      (b) At the beginning of each fiscal year, county 
142.6   allocations for consumer support grants shall be based on: 
142.7      (1) the number of persons to whom the county board expects 
142.8   to provide consumer supports grants; 
142.9      (2) their eligibility for current program and services; 
142.10     (3) the amount of nonfederal dollars expended on those 
142.11  individuals for those programs and services or, in situations 
142.12  where an individual is unable to obtain the support needed from 
142.13  the program of origination due to the unavailability of service 
142.14  providers at the time or the location where the supports are 
142.15  needed, the allocation will be based on the county's best 
142.16  estimate of the nonfederal dollars that would have been expended 
142.17  if the services had been available; and 
142.18     (4) projected dates when persons will start receiving 
142.19  grants.  County allocations shall be adjusted periodically by 
142.20  the commissioner based on the actual transfer of persons or 
142.21  service openings, and the nonfederal dollars associated with 
142.22  those persons or service openings, to the consumer support grant 
142.23  program. 
142.24     (c) The amount of funds transferred by the commissioner 
142.25  from the alternative care account and the medical assistance 
142.26  account for an individual may be changed if it is determined by 
142.27  the county or its agent that the individual's need for support 
142.28  has changed. 
142.29     (d) The authority to utilize funds transferred to the 
142.30  consumer support grant account for the purposes of implementing 
142.31  and administering the consumer support grant program will not be 
142.32  limited or constrained by the spending authority provided to the 
142.33  program of origination. 
142.34     (e) The commissioner shall may use up to five percent of 
142.35  each county's allocation, as adjusted, for payments to that 
142.36  county for administrative expenses, to be paid as a 
143.1   proportionate addition to reported direct service expenditures. 
143.2      (f) Except as provided in this paragraph, the county 
143.3   allocation for each individual or individual's family cannot 
143.4   exceed 80 percent of the total nonfederal dollars expended on 
143.5   the individual by the program of origination except for the 
143.6   developmental disabilities family support grant program which 
143.7   can be approved up to 100 percent of the nonfederal dollars and 
143.8   in situations as described in paragraph (b), clause (3).  In 
143.9   situations where exceptional need exists or the individual's 
143.10  need for support increases, up to 100 percent of the nonfederal 
143.11  dollars expended by the consumer's program of origination may be 
143.12  allocated to the county.  Allocations that exceed 80 percent of 
143.13  the nonfederal dollars expended on the individual by the program 
143.14  of origination must be approved by the commissioner.  The 
143.15  remainder of the amount expended on the individual by the 
143.16  program of origination will be used in the following 
143.17  proportions:  half will be made available to the consumer 
143.18  support grant program and participating counties for consumer 
143.19  training, resource development, and other costs, and half will 
143.20  be returned to the state general fund. 
143.21     (g) The commissioner may recover, suspend, or withhold 
143.22  payments if the county board, local agency, or grantee does not 
143.23  comply with the requirements of this section. 
143.24     (h) Grant funds unexpended by consumers shall return to the 
143.25  state once a year.  The annual return of unexpended grant funds 
143.26  shall occur in the quarter following the end of the state fiscal 
143.27  year. 
143.28     Sec. 14.  Minnesota Statutes 2000, section 256.476, 
143.29  subdivision 8, is amended to read: 
143.30     Subd. 8.  [COMMISSIONER RESPONSIBILITIES.] The commissioner 
143.31  shall: 
143.32     (1) transfer and allocate funds pursuant to this section; 
143.33     (2) determine allocations based on projected and actual 
143.34  local agency use; 
143.35     (3) monitor and oversee overall program spending; 
143.36     (4) evaluate the effectiveness of the program; 
144.1      (5) provide training and technical assistance for local 
144.2   agencies and consumers to help identify potential applicants to 
144.3   the program; and 
144.4      (6) develop guidelines for local agency program 
144.5   administration and consumer information; and.  
144.6      (7) apply for a federal waiver or take any other action 
144.7   necessary to maximize federal funding for the program by 
144.8   September 1, 1999. 
144.9      Sec. 15.  Minnesota Statutes 2000, section 256B.0625, 
144.10  subdivision 7, is amended to read: 
144.11     Subd. 7.  [PRIVATE DUTY NURSING.] Medical assistance covers 
144.12  private duty nursing services in a recipient's home.  Recipients 
144.13  who are authorized to receive private duty nursing services in 
144.14  their home may use approved hours outside of the home during 
144.15  hours when normal life activities take them outside of their 
144.16  home and when, without the provision of private duty nursing, 
144.17  their health and safety would be jeopardized.  To use private 
144.18  duty nursing services at school, the recipient or responsible 
144.19  party must provide written authorization in the care plan 
144.20  identifying the chosen provider and the daily amount of services 
144.21  to be used at school.  Medical assistance does not cover private 
144.22  duty nursing services for residents of a hospital, nursing 
144.23  facility, intermediate care facility, or a health care facility 
144.24  licensed by the commissioner of health, except as authorized in 
144.25  section 256B.64 for ventilator-dependent recipients in hospitals 
144.26  or unless a resident who is otherwise eligible is on leave from 
144.27  the facility and the facility either pays for the private duty 
144.28  nursing services or forgoes the facility per diem for the leave 
144.29  days that private duty nursing services are used.  Total hours 
144.30  of service and payment allowed for services outside the home 
144.31  cannot exceed that which is otherwise allowed in an in-home 
144.32  setting according to section 256B.0627.  All private duty 
144.33  nursing services must be provided according to the limits 
144.34  established under section 256B.0627.  Private duty nursing 
144.35  services may not be reimbursed if the nurse is the spouse of the 
144.36  recipient or the parent or foster care provider of a recipient 
145.1   who is under age 18, or the recipient's legal guardian. 
145.2      Sec. 16.  Minnesota Statutes 2000, section 256B.0625, 
145.3   subdivision 19a, is amended to read: 
145.4      Subd. 19a.  [PERSONAL CARE ASSISTANT SERVICES.] Medical 
145.5   assistance covers personal care assistant services in a 
145.6   recipient's home.  To qualify for personal care assistant 
145.7   services, recipients or responsible parties must be able to 
145.8   identify the recipient's needs, direct and evaluate task 
145.9   accomplishment, and provide for health and safety.  Approved 
145.10  hours may be used outside the home when normal life activities 
145.11  take them outside the home and when, without the provision of 
145.12  personal care, their health and safety would be jeopardized.  To 
145.13  use personal care assistant services at school, the recipient or 
145.14  responsible party must provide written authorization in the care 
145.15  plan identifying the chosen provider and the daily amount of 
145.16  services to be used at school.  Total hours for services, 
145.17  whether actually performed inside or outside the recipient's 
145.18  home, cannot exceed that which is otherwise allowed for personal 
145.19  care assistant services in an in-home setting according to 
145.20  section 256B.0627.  Medical assistance does not cover personal 
145.21  care assistant services for residents of a hospital, nursing 
145.22  facility, intermediate care facility, health care facility 
145.23  licensed by the commissioner of health, or unless a resident who 
145.24  is otherwise eligible is on leave from the facility and the 
145.25  facility either pays for the personal care assistant services or 
145.26  forgoes the facility per diem for the leave days that personal 
145.27  care assistant services are used.  All personal care services 
145.28  must be provided according to section 256B.0627.  Personal 
145.29  care assistant services may not be reimbursed if the personal 
145.30  care assistant is the spouse or legal guardian of the recipient 
145.31  or the parent of a recipient under age 18, or the responsible 
145.32  party or the foster care provider of a recipient who cannot 
145.33  direct the recipient's own care unless, in the case of a foster 
145.34  care provider, a county or state case manager visits the 
145.35  recipient as needed, but not less than every six months, to 
145.36  monitor the health and safety of the recipient and to ensure the 
146.1   goals of the care plan are met.  Parents of adult recipients, 
146.2   adult children of the recipient or adult siblings of the 
146.3   recipient may be reimbursed for personal care assistant services 
146.4   if they are not the recipient's legal guardian and, if they are 
146.5   granted a waiver under section 256B.0627.  Until July 1, 2001, 
146.6   and Notwithstanding the provisions of section 256B.0627, 
146.7   subdivision 4, paragraph (b), clause (4), the noncorporate legal 
146.8   guardian or conservator of an adult, who is not the responsible 
146.9   party and not the personal care provider organization, may be 
146.10  granted a hardship waiver under section 256B.0627, to be 
146.11  reimbursed to provide personal care assistant services to the 
146.12  recipient, and shall not be considered to have a service 
146.13  provider interest for purposes of participation on the screening 
146.14  team under section 256B.092, subdivision 7. 
146.15     Sec. 17.  Minnesota Statutes 2000, section 256B.0625, 
146.16  subdivision 19c, is amended to read: 
146.17     Subd. 19c.  [PERSONAL CARE.] Medical assistance covers 
146.18  personal care assistant services provided by an individual who 
146.19  is qualified to provide the services according to subdivision 
146.20  19a and section 256B.0627, where the services are prescribed by 
146.21  a physician in accordance with a plan of treatment and are 
146.22  supervised by the recipient under the fiscal agent option 
146.23  according to section 256B.0627, subdivision 10, or a qualified 
146.24  professional.  "Qualified professional" means a mental health 
146.25  professional as defined in section 245.462, subdivision 18, or 
146.26  245.4871, subdivision 27; or a registered nurse as defined in 
146.27  sections 148.171 to 148.285.  As part of the assessment, the 
146.28  county public health nurse will consult with assist the 
146.29  recipient or responsible party and to identify the most 
146.30  appropriate person to provide supervision of the personal care 
146.31  assistant.  The qualified professional shall perform the duties 
146.32  described in Minnesota Rules, part 9505.0335, subpart 4.  
146.33     Sec. 18.  Minnesota Statutes 2000, section 256B.0625, 
146.34  subdivision 20, is amended to read: 
146.35     Subd. 20.  [MENTAL HEALTH CASE MANAGEMENT.] (a) To the 
146.36  extent authorized by rule of the state agency, medical 
147.1   assistance covers case management services to persons with 
147.2   serious and persistent mental illness and children with severe 
147.3   emotional disturbance.  Services provided under this section 
147.4   must meet the relevant standards in sections 245.461 to 
147.5   245.4888, the Comprehensive Adult and Children's Mental Health 
147.6   Acts, Minnesota Rules, parts 9520.0900 to 9520.0926, and 
147.7   9505.0322, excluding subpart 10. 
147.8      (b) Entities meeting program standards set out in rules 
147.9   governing family community support services as defined in 
147.10  section 245.4871, subdivision 17, are eligible for medical 
147.11  assistance reimbursement for case management services for 
147.12  children with severe emotional disturbance when these services 
147.13  meet the program standards in Minnesota Rules, parts 9520.0900 
147.14  to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
147.15     (c) Medical assistance and MinnesotaCare payment for mental 
147.16  health case management shall be made on a monthly basis.  In 
147.17  order to receive payment for an eligible child, the provider 
147.18  must document at least a face-to-face contact with the child, 
147.19  the child's parents, or the child's legal representative.  To 
147.20  receive payment for an eligible adult, the provider must 
147.21  document: 
147.22     (1) at least a face-to-face contact with the adult or the 
147.23  adult's legal representative; or 
147.24     (2) at least a telephone contact with the adult or the 
147.25  adult's legal representative and document a face-to-face contact 
147.26  with the adult or the adult's legal representative within the 
147.27  preceding two months. 
147.28     (d) Payment for mental health case management provided by 
147.29  county or state staff shall be based on the monthly rate 
147.30  methodology under section 256B.094, subdivision 6, paragraph 
147.31  (b), with separate rates calculated for child welfare and mental 
147.32  health, and within mental health, separate rates for children 
147.33  and adults. 
147.34     (e) Payment for mental health case management provided by 
147.35  county-contracted vendors shall be based on a monthly rate 
147.36  negotiated by the host county.  The negotiated rate must not 
148.1   exceed the rate charged by the vendor for the same service to 
148.2   other payers.  If the service is provided by a team of 
148.3   contracted vendors, the county may negotiate a team rate with a 
148.4   vendor who is a member of the team.  The team shall determine 
148.5   how to distribute the rate among its members.  No reimbursement 
148.6   received by contracted vendors shall be returned to the county, 
148.7   except to reimburse the county for advance funding provided by 
148.8   the county to the vendor. 
148.9      (f) If the service is provided by a team which includes 
148.10  contracted vendors and county or state staff, the costs for 
148.11  county or state staff participation in the team shall be 
148.12  included in the rate for county-provided services.  In this 
148.13  case, the contracted vendor and the county may each receive 
148.14  separate payment for services provided by each entity in the 
148.15  same month.  In order to prevent duplication of services, the 
148.16  county must document, in the recipient's file, the need for team 
148.17  case management and a description of the roles of the team 
148.18  members. 
148.19     (g) The commissioner shall calculate the nonfederal share 
148.20  of actual medical assistance and general assistance medical care 
148.21  payments for each county, based on the higher of calendar year 
148.22  1995 or 1996, by service date, project that amount forward to 
148.23  1999, and transfer one-half of the result from medical 
148.24  assistance and general assistance medical care to each county's 
148.25  mental health grants under sections 245.4886 and 256E.12 for 
148.26  calendar year 1999.  The annualized minimum amount added to each 
148.27  county's mental health grant shall be $3,000 per year for 
148.28  children and $5,000 per year for adults.  The commissioner may 
148.29  reduce the statewide growth factor in order to fund these 
148.30  minimums.  The annualized total amount transferred shall become 
148.31  part of the base for future mental health grants for each county.
148.32     (h) Any net increase in revenue to the county as a result 
148.33  of the change in this section must be used to provide expanded 
148.34  mental health services as defined in sections 245.461 to 
148.35  245.4888, the Comprehensive Adult and Children's Mental Health 
148.36  Acts, excluding inpatient and residential treatment.  For 
149.1   adults, increased revenue may also be used for services and 
149.2   consumer supports which are part of adult mental health projects 
149.3   approved under Laws 1997, chapter 203, article 7, section 25.  
149.4   For children, increased revenue may also be used for respite 
149.5   care and nonresidential individualized rehabilitation services 
149.6   as defined in section 245.492, subdivisions 17 and 23.  
149.7   "Increased revenue" has the meaning given in Minnesota Rules, 
149.8   part 9520.0903, subpart 3.  
149.9      (i) Notwithstanding section 256B.19, subdivision 1, the 
149.10  nonfederal share of costs for mental health case management 
149.11  shall be provided by the recipient's county of responsibility, 
149.12  as defined in sections 256G.01 to 256G.12, from sources other 
149.13  than federal funds or funds used to match other federal funds.  
149.14     (j) The commissioner may suspend, reduce, or terminate the 
149.15  reimbursement to a provider that does not meet the reporting or 
149.16  other requirements of this section.  The county of 
149.17  responsibility, as defined in sections 256G.01 to 256G.12, is 
149.18  responsible for any federal disallowances.  The county may share 
149.19  this responsibility with its contracted vendors.  
149.20     (k) The commissioner shall set aside a portion of the 
149.21  federal funds earned under this section to repay the special 
149.22  revenue maximization account under section 256.01, subdivision 
149.23  2, clause (15).  The repayment is limited to: 
149.24     (1) the costs of developing and implementing this section; 
149.25  and 
149.26     (2) programming the information systems. 
149.27     (l) Notwithstanding section 256.025, subdivision 2, 
149.28  payments to counties for case management expenditures under this 
149.29  section shall only be made from federal earnings from services 
149.30  provided under this section.  Payments to contracted vendors 
149.31  shall include both the federal earnings and the county share. 
149.32     (m) Notwithstanding section 256B.041, county payments for 
149.33  the cost of mental health case management services provided by 
149.34  county or state staff shall not be made to the state treasurer.  
149.35  For the purposes of mental health case management services 
149.36  provided by county or state staff under this section, the 
150.1   centralized disbursement of payments to counties under section 
150.2   256B.041 consists only of federal earnings from services 
150.3   provided under this section. 
150.4      (n) Case management services under this subdivision do not 
150.5   include therapy, treatment, legal, or outreach services. 
150.6      (o) If the recipient is a resident of a nursing facility, 
150.7   intermediate care facility, or hospital, and the recipient's 
150.8   institutional care is paid by medical assistance, payment for 
150.9   case management services under this subdivision is limited to 
150.10  the last 30 180 days of the recipient's residency in that 
150.11  facility and may not exceed more than two six months in a 
150.12  calendar year. 
150.13     (p) Payment for case management services under this 
150.14  subdivision shall not duplicate payments made under other 
150.15  program authorities for the same purpose. 
150.16     (q) By July 1, 2000, the commissioner shall evaluate the 
150.17  effectiveness of the changes required by this section, including 
150.18  changes in number of persons receiving mental health case 
150.19  management, changes in hours of service per person, and changes 
150.20  in caseload size. 
150.21     (r) For each calendar year beginning with the calendar year 
150.22  2001, the annualized amount of state funds for each county 
150.23  determined under paragraph (g) shall be adjusted by the county's 
150.24  percentage change in the average number of clients per month who 
150.25  received case management under this section during the fiscal 
150.26  year that ended six months prior to the calendar year in 
150.27  question, in comparison to the prior fiscal year. 
150.28     (s) For counties receiving the minimum allocation of $3,000 
150.29  or $5,000 described in paragraph (g), the adjustment in 
150.30  paragraph (r) shall be determined so that the county receives 
150.31  the higher of the following amounts: 
150.32     (1) a continuation of the minimum allocation in paragraph 
150.33  (g); or 
150.34     (2) an amount based on that county's average number of 
150.35  clients per month who received case management under this 
150.36  section during the fiscal year that ended six months prior to 
151.1   the calendar year in question, in comparison to the prior fiscal 
151.2   year, times the average statewide grant per person per month for 
151.3   counties not receiving the minimum allocation. 
151.4      (t) The adjustments in paragraphs (r) and (s) shall be 
151.5   calculated separately for children and adults. 
151.6      Sec. 19.  Minnesota Statutes 2000, section 256B.0625, is 
151.7   amended by adding a subdivision to read: 
151.8      Subd. 43.  [TARGETED CASE MANAGEMENT.] For purposes of 
151.9   subdivisions 43a to 43h, the following terms have the meanings 
151.10  given them: 
151.11     (1) "Home care service recipients" means those individuals 
151.12  receiving the following services under section 256B.0627:  
151.13  skilled nursing visits, home health aide visits, private duty 
151.14  nursing, personal care assistants, or therapies provided through 
151.15  a home health agency. 
151.16     (2) "Home care targeted case management" means the 
151.17  provision of targeted case management services for the purpose 
151.18  of assisting home care service recipients to gain access to 
151.19  needed services and supports so that they may remain in the 
151.20  community. 
151.21     (3) "Institutions" means hospitals, consistent with Code of 
151.22  Federal Regulations, title 42, section 440.10; regional 
151.23  treatment center inpatient services, consistent with section 
151.24  245.474; nursing facilities; and intermediate care facilities 
151.25  for persons with mental retardation. 
151.26     (4) "Relocation targeted case management" means the 
151.27  provision of targeted case management services for the purpose 
151.28  of assisting recipients to gain access to needed services and 
151.29  supports if they choose to move from an institution to the 
151.30  community.  Relocation targeted case management may be provided 
151.31  during the last 180 consecutive days of an eligible recipient's 
151.32  institutional stay. 
151.33     (5) "Targeted case management" means case management 
151.34  services provided to help recipients gain access to needed 
151.35  medical, social, educational, and other services and supports. 
151.36     Sec. 20.  Minnesota Statutes 2000, section 256B.0625, is 
152.1   amended by adding a subdivision to read: 
152.2      Subd. 43a.  [ELIGIBILITY.] The following persons are 
152.3   eligible for relocation targeted case management or home care 
152.4   targeted case management: 
152.5      (1) medical assistance eligible persons residing in 
152.6   institutions who choose to move into the community are eligible 
152.7   for relocation targeted case management services; and 
152.8      (2) medical assistance eligible persons receiving home care 
152.9   services, who are not eligible for any other medical assistance 
152.10  reimbursable case management service, are eligible for home care 
152.11  targeted case management services beginning January 1, 2003.  
152.12     Sec. 21.  Minnesota Statutes 2000, section 256B.0625, is 
152.13  amended by adding a subdivision to read: 
152.14     Subd. 43b.  [RELOCATION TARGETED CASE MANAGEMENT PROVIDER 
152.15  QUALIFICATIONS.] The following qualifications and certification 
152.16  standards must be met by providers of relocation targeted case 
152.17  management: 
152.18     (a) The commissioner must certify each provider of 
152.19  relocation targeted case management before enrollment.  The 
152.20  certification process shall examine the provider's ability to 
152.21  meet the requirements in this subdivision and other federal and 
152.22  state requirements of this service.  A certified relocation 
152.23  targeted case management provider may subcontract with another 
152.24  provider to deliver relocation targeted case management 
152.25  services.  Subcontracted providers must demonstrate the ability 
152.26  to provide the services outlined in subdivision 43d. 
152.27     (b) A relocation targeted case management provider is an 
152.28  enrolled medical assistance provider who is determined by the 
152.29  commissioner to have all of the following characteristics: 
152.30     (1) the legal authority to provide public welfare under 
152.31  sections 393.01, subdivision 7; and 393.07, or a federally 
152.32  recognized Indian tribe; 
152.33     (2) the demonstrated capacity and experience to provide the 
152.34  components of case management to coordinate and link community 
152.35  resources needed by the eligible population; 
152.36     (3) the administrative capacity and experience to serve the 
153.1   target population for whom it will provide services and ensure 
153.2   quality of services under state and federal requirements; 
153.3      (4) the legal authority to provide complete investigative 
153.4   and protective services under section 626.556, subdivision 10, 
153.5   and child welfare and foster care services under section 393.07, 
153.6   subdivisions 1 and 2, or a federally recognized Indian tribe; 
153.7      (5) a financial management system that provides accurate 
153.8   documentation of services and costs under state and federal 
153.9   requirements; and 
153.10     (6) the capacity to document and maintain individual case 
153.11  records under state and federal requirements. 
153.12  A provider of targeted case management under subdivision 20 may 
153.13  be deemed a certified provider of relocation targeted case 
153.14  management. 
153.15     Sec. 22. Minnesota Statutes 2000, section 256B.0625, is 
153.16  amended by adding a subdivision to read: 
153.17     Subd. 43c.  [HOME CARE TARGETED CASE MANAGEMENT PROVIDER 
153.18  QUALIFICATIONS.] The following qualifications and certification 
153.19  standards must be met by providers of home care targeted case 
153.20  management. 
153.21     (a) The commissioner must certify each provider of home 
153.22  care targeted case management before enrollment.  The 
153.23  certification process shall examine the provider's ability to 
153.24  meet the requirements in this subdivision and other state and 
153.25  federal requirements of this service. 
153.26     (b) A home care targeted case management provider is an 
153.27  enrolled medical assistance provider who has a minimum of a 
153.28  bachelor's degree or a license in a health or human services 
153.29  field, and is determined by the commissioner to have all of the 
153.30  following characteristics: 
153.31     (1) the demonstrated capacity and experience to provide the 
153.32  components of case management to coordinate and link community 
153.33  resources needed by the eligible population; 
153.34     (2) the administrative capacity and experience to serve the 
153.35  target population for whom it will provide services and ensure 
153.36  quality of services under state and federal requirements; 
154.1      (3) a financial management system that provides accurate 
154.2   documentation of services and costs under state and federal 
154.3   requirements; 
154.4      (4) the capacity to document and maintain individual case 
154.5   records under state and federal requirements; and 
154.6      (5) the capacity to coordinate with county administrative 
154.7   functions. 
154.8      Sec. 23.  Minnesota Statutes 2000, section 256B.0625, is 
154.9   amended by adding a subdivision to read: 
154.10     Subd. 43d.  [ELIGIBLE SERVICES.] Services eligible for 
154.11  medical assistance reimbursement as targeted case management 
154.12  include: 
154.13     (1) assessment of the recipient's need for targeted case 
154.14  management services; 
154.15     (2) development, completion, and regular review of a 
154.16  written individual service plan, which is based upon the 
154.17  assessment of the recipient's needs and choices, and which will 
154.18  ensure access to medical, social, educational, and other related 
154.19  services and supports; 
154.20     (3) routine contact or communication with the recipient, 
154.21  recipient's family, primary caregiver, legal representative, 
154.22  substitute care provider, service providers, or other relevant 
154.23  persons identified as necessary to the development or 
154.24  implementation of the goals of the individual service plan; 
154.25     (4) coordinating referrals for, and the provision of, case 
154.26  management services for the recipient with appropriate service 
154.27  providers, consistent with section 1902(a)(23) of the Social 
154.28  Security Act; 
154.29     (5) coordinating and monitoring the overall service 
154.30  delivery to ensure quality of services, appropriateness, and 
154.31  continued need; 
154.32     (6) completing and maintaining necessary documentation that 
154.33  supports and verifies the activities in this subdivision; 
154.34     (7) traveling to conduct a visit with the recipient or 
154.35  other relevant person necessary to develop or implement the 
154.36  goals of the individual service plan; and 
155.1      (8) coordinating with the institution discharge planner in 
155.2   the 180-day period before the recipient's discharge. 
155.3      Sec. 24.  Minnesota Statutes 2000, section 256B.0625, is 
155.4   amended by adding a subdivision to read: 
155.5      Subd. 43e.  [TIME LINES.] The following time lines must be 
155.6   met for assigning a case manager: 
155.7      (1) for relocation targeted case management, an eligible 
155.8   recipient must be assigned a case manager who visits the person 
155.9   within 20 working days of requesting a case manager from their 
155.10  county of financial responsibility as determined under chapter 
155.11  256G.  If a county agency does not provide case management 
155.12  services as required, the recipient may, after written notice to 
155.13  the county agency, obtain targeted relocation case management 
155.14  services from a home care targeted case management provider, as 
155.15  defined in subdivision 43c; and 
155.16     (2) for home care targeted case management, an eligible 
155.17  recipient must be assigned a case manager within 20 working days 
155.18  of requesting a case manager from a home care targeted case 
155.19  management provider, as defined in subdivision 43c. 
155.20     Sec. 25.  Minnesota Statutes 2000, section 256B.0625, is 
155.21  amended by adding a subdivision to read: 
155.22     Subd. 43f.  [EVALUATION.] The commissioner shall evaluate 
155.23  the delivery of targeted case management, including, but not 
155.24  limited to, access to case management services, consumer 
155.25  satisfaction with case management services, and quality of case 
155.26  management services. 
155.27     Sec. 26.  Minnesota Statutes 2000, section 256B.0625, is 
155.28  amended by adding a subdivision to read: 
155.29     Subd. 43g.  [CONTACT DOCUMENTATION.] The case manager must 
155.30  document each face-to-face and telephone contact with the 
155.31  recipient and others involved in the recipient's individual 
155.32  service plan. 
155.33     Sec. 27.  Minnesota Statutes 2000, section 256B.0625, is 
155.34  amended by adding a subdivision to read: 
155.35     Subd. 43h.  [PAYMENT RATES.] The commissioner shall set 
155.36  payment rates for targeted case management under this 
156.1   subdivision.  Case managers may bill according to the following 
156.2   criteria: 
156.3      (1) for relocation targeted case management, case managers 
156.4   may bill for direct case management activities, including 
156.5   face-to-face and telephone contacts, in the 180 days preceding 
156.6   an eligible recipient's discharge from an institution; 
156.7      (2) for home care targeted case management, case managers 
156.8   may bill for direct case management activities, including 
156.9   face-to-face and telephone contacts; and 
156.10     (3) billings for targeted case management services under 
156.11  this subdivision shall not duplicate payments made under other 
156.12  program authorities for the same purpose. 
156.13     Sec. 28.  Minnesota Statutes 2000, section 256B.0627, 
156.14  subdivision 1, is amended to read: 
156.15     Subdivision 1.  [DEFINITION.] (a) "Activities of daily 
156.16  living" includes eating, toileting, grooming, dressing, bathing, 
156.17  transferring, mobility, and positioning.  
156.18     (b) "Assessment" means a review and evaluation of a 
156.19  recipient's need for home care services conducted in person.  
156.20  Assessments for private duty nursing shall be conducted by a 
156.21  registered private duty nurse.  Assessments for home health 
156.22  agency services shall be conducted by a home health agency 
156.23  nurse.  Assessments for personal care assistant services shall 
156.24  be conducted by the county public health nurse or a certified 
156.25  public health nurse under contract with the county.  A 
156.26  face-to-face assessment must include:  documentation of health 
156.27  status, determination of need, evaluation of service 
156.28  effectiveness, identification of appropriate services, service 
156.29  plan development or modification, coordination of services, 
156.30  referrals and follow-up to appropriate payers and community 
156.31  resources, completion of required reports, recommendation of 
156.32  service authorization, and consumer education.  Once the need 
156.33  for personal care assistant services is determined under this 
156.34  section, the county public health nurse or certified public 
156.35  health nurse under contract with the county is responsible for 
156.36  communicating this recommendation to the commissioner and the 
157.1   recipient.  A face-to-face assessment for personal 
157.2   care assistant services is conducted on those recipients who 
157.3   have never had a county public health nurse assessment.  A 
157.4   face-to-face assessment must occur at least annually or when 
157.5   there is a significant change in the recipient's condition or 
157.6   when there is a change in the need for personal care assistant 
157.7   services.  A service update may substitute for the annual 
157.8   face-to-face assessment when there is not a significant change 
157.9   in recipient condition or a change in the need for personal care 
157.10  assistant service.  A service update or review for temporary 
157.11  increase includes a review of initial baseline data, evaluation 
157.12  of service effectiveness, redetermination of service need, 
157.13  modification of service plan and appropriate referrals, update 
157.14  of initial forms, obtaining service authorization, and on going 
157.15  consumer education.  Assessments for medical assistance home 
157.16  care services for mental retardation or related conditions and 
157.17  alternative care services for developmentally disabled home and 
157.18  community-based waivered recipients may be conducted by the 
157.19  county public health nurse to ensure coordination and avoid 
157.20  duplication.  Assessments must be completed on forms provided by 
157.21  the commissioner within 30 days of a request for home care 
157.22  services by a recipient or responsible party. 
157.23     (b) (c) "Care plan" means a written description of personal 
157.24  care assistant services developed by the qualified 
157.25  professional or the recipient's physician with the recipient or 
157.26  responsible party to be used by the personal care assistant with 
157.27  a copy provided to the recipient or responsible party. 
157.28     (d) "Complex and regular private duty nursing care" means, 
157.29  effective July 1, 2001:  
157.30     (1) complex care is private duty nursing provided to 
157.31  recipients who are ventilator dependent or for whom a physician 
157.32  has certified that were it not for private duty nursing the 
157.33  recipient would meet the criteria for inpatient hospital 
157.34  intensive care unit (ICU) level of care; and 
157.35     (2) regular care is private duty nursing provided to all 
157.36  other recipients. 
158.1      (e) "Health-related functions" means functions that can be 
158.2   delegated or assigned by a licensed health care professional 
158.3   under state law to be performed by a personal care attendant. 
158.4      (c) (f) "Home care services" means a health service, 
158.5   determined by the commissioner as medically necessary, that is 
158.6   ordered by a physician and documented in a service plan that is 
158.7   reviewed by the physician at least once every 62 60 days for the 
158.8   provision of home health services, or private duty nursing, or 
158.9   at least once every 365 days for personal care.  Home care 
158.10  services are provided to the recipient at the recipient's 
158.11  residence that is a place other than a hospital or long-term 
158.12  care facility or as specified in section 256B.0625.  
158.13     (g) "Instrumental activities of daily living" includes meal 
158.14  planning and preparation, managing finances, shopping for food, 
158.15  clothing, and other essential items, performing essential 
158.16  household chores, communication by telephone and other media, 
158.17  and getting around and participating in the community. 
158.18     (d) (h) "Medically necessary" has the meaning given in 
158.19  Minnesota Rules, parts 9505.0170 to 9505.0475.  
158.20     (e) (i) "Personal care assistant" means a person who:  
158.21     (1) is at least 18 years old, except for persons 16 to 18 
158.22  years of age who participated in a related school-based job 
158.23  training program or have completed a certified home health aide 
158.24  competency evaluation; 
158.25     (2) is able to effectively communicate with the recipient 
158.26  and personal care provider organization; 
158.27     (3) effective July 1, 1996, has completed one of the 
158.28  training requirements as specified in Minnesota Rules, part 
158.29  9505.0335, subpart 3, items A to D; 
158.30     (4) has the ability to, and provides covered personal care 
158.31  assistant services according to the recipient's care plan, 
158.32  responds appropriately to recipient needs, and reports changes 
158.33  in the recipient's condition to the supervising qualified 
158.34  professional or physician; 
158.35     (5) is not a consumer of personal care assistant services; 
158.36  and 
159.1      (6) is subject to criminal background checks and procedures 
159.2   specified in section 245A.04.  
159.3      (f) (j) "Personal care provider organization" means an 
159.4   organization enrolled to provide personal care assistant 
159.5   services under the medical assistance program that complies with 
159.6   the following:  (1) owners who have a five percent interest or 
159.7   more, and managerial officials are subject to a background study 
159.8   as provided in section 245A.04.  This applies to currently 
159.9   enrolled personal care provider organizations and those agencies 
159.10  seeking enrollment as a personal care provider organization.  An 
159.11  organization will be barred from enrollment if an owner or 
159.12  managerial official of the organization has been convicted of a 
159.13  crime specified in section 245A.04, or a comparable crime in 
159.14  another jurisdiction, unless the owner or managerial official 
159.15  meets the reconsideration criteria specified in section 245A.04; 
159.16  (2) the organization must maintain a surety bond and liability 
159.17  insurance throughout the duration of enrollment and provides 
159.18  proof thereof.  The insurer must notify the department of human 
159.19  services of the cancellation or lapse of policy; and (3) the 
159.20  organization must maintain documentation of services as 
159.21  specified in Minnesota Rules, part 9505.2175, subpart 7, as well 
159.22  as evidence of compliance with personal care assistant training 
159.23  requirements. 
159.24     (g) (k) "Responsible party" means an individual residing 
159.25  with a recipient of personal care assistant services who is 
159.26  capable of providing the supportive care necessary to assist the 
159.27  recipient to live in the community, is at least 18 years old, 
159.28  and is not a personal care assistant.  Responsible parties who 
159.29  are parents of minors or guardians of minors or incapacitated 
159.30  persons may delegate the responsibility to another adult during 
159.31  a temporary absence of at least 24 hours but not more than six 
159.32  months.  The person delegated as a responsible party must be 
159.33  able to meet the definition of responsible party, except that 
159.34  the delegated responsible party is required to reside with the 
159.35  recipient only while serving as the responsible party.  Foster 
159.36  care license holders may be designated the responsible party for 
160.1   residents of the foster care home if case management is provided 
160.2   as required in section 256B.0625, subdivision 19a.  For persons 
160.3   who, as of April 1, 1992, are sharing personal care assistant 
160.4   services in order to obtain the availability of 24-hour 
160.5   coverage, an employee of the personal care provider organization 
160.6   may be designated as the responsible party if case management is 
160.7   provided as required in section 256B.0625, subdivision 19a. 
160.8      (h) (l) "Service plan" means a written description of the 
160.9   services needed based on the assessment developed by the nurse 
160.10  who conducts the assessment together with the recipient or 
160.11  responsible party.  The service plan shall include a description 
160.12  of the covered home care services, frequency and duration of 
160.13  services, and expected outcomes and goals.  The recipient and 
160.14  the provider chosen by the recipient or responsible party must 
160.15  be given a copy of the completed service plan within 30 calendar 
160.16  days of the request for home care services by the recipient or 
160.17  responsible party. 
160.18     (i) (m) "Skilled nurse visits" are provided in a 
160.19  recipient's residence under a plan of care or service plan that 
160.20  specifies a level of care which the nurse is qualified to 
160.21  provide.  These services are: 
160.22     (1) nursing services according to the written plan of care 
160.23  or service plan and accepted standards of medical and nursing 
160.24  practice in accordance with chapter 148; 
160.25     (2) services which due to the recipient's medical condition 
160.26  may only be safely and effectively provided by a registered 
160.27  nurse or a licensed practical nurse; 
160.28     (3) assessments performed only by a registered nurse; and 
160.29     (4) teaching and training the recipient, the recipient's 
160.30  family, or other caregivers requiring the skills of a registered 
160.31  nurse or licensed practical nurse. 
160.32     (n) "Telehomecare" means the use of telecommunications 
160.33  technology by a home health care professional to deliver home 
160.34  health care services, within the professional's scope of 
160.35  practice, to a patient located at a site other than the site 
160.36  where the practitioner is located. 
161.1      Sec. 29.  Minnesota Statutes 2000, section 256B.0627, 
161.2   subdivision 2, is amended to read: 
161.3      Subd. 2.  [SERVICES COVERED.] Home care services covered 
161.4   under this section include:  
161.5      (1) nursing services under section 256B.0625, subdivision 
161.6   6a; 
161.7      (2) private duty nursing services under section 256B.0625, 
161.8   subdivision 7; 
161.9      (3) home health aide services under section 256B.0625, 
161.10  subdivision 6a; 
161.11     (4) personal care assistant services under section 
161.12  256B.0625, subdivision 19a; 
161.13     (5) supervision of personal care assistant services 
161.14  provided by a qualified professional under section 256B.0625, 
161.15  subdivision 19a; 
161.16     (6) consulting qualified professional of personal care 
161.17  assistant services under the fiscal agent intermediary option as 
161.18  specified in subdivision 10; 
161.19     (7) face-to-face assessments by county public health nurses 
161.20  for services under section 256B.0625, subdivision 19a; and 
161.21     (8) service updates and review of temporary increases for 
161.22  personal care assistant services by the county public health 
161.23  nurse for services under section 256B.0625, subdivision 19a. 
161.24     Sec. 30.  Minnesota Statutes 2000, section 256B.0627, 
161.25  subdivision 4, is amended to read: 
161.26     Subd. 4.  [PERSONAL CARE ASSISTANT SERVICES.] (a) The 
161.27  personal care assistant services that are eligible for payment 
161.28  are the following: services and supports furnished to an 
161.29  individual, as needed, to assist in accomplishing activities of 
161.30  daily living; instrumental activities of daily living; 
161.31  health-related functions through hands-on assistance, 
161.32  supervision, and cuing; and redirection and intervention for 
161.33  behavior including observation and monitoring.  
161.34     (b) Payment for services will be made within the limits 
161.35  approved using the prior authorized process established in 
161.36  subdivision 5. 
162.1      (c) The amount and type of services authorized shall be 
162.2   based on an assessment of the recipient's needs in these areas: 
162.3      (1) bowel and bladder care; 
162.4      (2) skin care to maintain the health of the skin; 
162.5      (3) repetitive maintenance range of motion, muscle 
162.6   strengthening exercises, and other tasks specific to maintaining 
162.7   a recipient's optimal level of function; 
162.8      (4) respiratory assistance; 
162.9      (5) transfers and ambulation; 
162.10     (6) bathing, grooming, and hairwashing necessary for 
162.11  personal hygiene; 
162.12     (7) turning and positioning; 
162.13     (8) assistance with furnishing medication that is 
162.14  self-administered; 
162.15     (9) application and maintenance of prosthetics and 
162.16  orthotics; 
162.17     (10) cleaning medical equipment; 
162.18     (11) dressing or undressing; 
162.19     (12) assistance with eating and meal preparation and 
162.20  necessary grocery shopping; 
162.21     (13) accompanying a recipient to obtain medical diagnosis 
162.22  or treatment; 
162.23     (14) assisting, monitoring, or prompting the recipient to 
162.24  complete the services in clauses (1) to (13); 
162.25     (15) redirection, monitoring, and observation that are 
162.26  medically necessary and an integral part of completing the 
162.27  personal care assistant services described in clauses (1) to 
162.28  (14); 
162.29     (16) redirection and intervention for behavior, including 
162.30  observation and monitoring; 
162.31     (17) interventions for seizure disorders, including 
162.32  monitoring and observation if the recipient has had a seizure 
162.33  that requires intervention within the past three months; 
162.34     (18) tracheostomy suctioning using a clean procedure if the 
162.35  procedure is properly delegated by a registered nurse.  Before 
162.36  this procedure can be delegated to a personal care assistant, a 
163.1   registered nurse must determine that the tracheostomy suctioning 
163.2   can be accomplished utilizing a clean rather than a sterile 
163.3   procedure and must ensure that the personal care assistant has 
163.4   been taught the proper procedure; and 
163.5      (19) incidental household services that are an integral 
163.6   part of a personal care service described in clauses (1) to (18).
163.7   For purposes of this subdivision, monitoring and observation 
163.8   means watching for outward visible signs that are likely to 
163.9   occur and for which there is a covered personal care service or 
163.10  an appropriate personal care intervention.  For purposes of this 
163.11  subdivision, a clean procedure refers to a procedure that 
163.12  reduces the numbers of microorganisms or prevents or reduces the 
163.13  transmission of microorganisms from one person or place to 
163.14  another.  A clean procedure may be used beginning 14 days after 
163.15  insertion. 
163.16     (b) (d) The personal care assistant services that are not 
163.17  eligible for payment are the following:  
163.18     (1) services not ordered by the physician; 
163.19     (2) assessments by personal care assistant provider 
163.20  organizations or by independently enrolled registered nurses; 
163.21     (3) services that are not in the service plan; 
163.22     (4) services provided by the recipient's spouse, legal 
163.23  guardian for an adult or child recipient, or parent of a 
163.24  recipient under age 18; 
163.25     (5) services provided by a foster care provider of a 
163.26  recipient who cannot direct the recipient's own care, unless 
163.27  monitored by a county or state case manager under section 
163.28  256B.0625, subdivision 19a; 
163.29     (6) services provided by the residential or program license 
163.30  holder in a residence for more than four persons; 
163.31     (7) services that are the responsibility of a residential 
163.32  or program license holder under the terms of a service agreement 
163.33  and administrative rules; 
163.34     (8) sterile procedures; 
163.35     (9) injections of fluids into veins, muscles, or skin; 
163.36     (10) services provided by parents of adult recipients, 
164.1   adult children, or siblings of the recipient, unless these 
164.2   relatives meet one of the following hardship criteria and the 
164.3   commissioner waives this requirement: 
164.4      (i) the relative resigns from a part-time or full-time job 
164.5   to provide personal care for the recipient; 
164.6      (ii) the relative goes from a full-time to a part-time job 
164.7   with less compensation to provide personal care for the 
164.8   recipient; 
164.9      (iii) the relative takes a leave of absence without pay to 
164.10  provide personal care for the recipient; 
164.11     (iv) the relative incurs substantial expenses by providing 
164.12  personal care for the recipient; or 
164.13     (v) because of labor conditions, special language needs, or 
164.14  intermittent hours of care needed, the relative is needed in 
164.15  order to provide an adequate number of qualified personal care 
164.16  assistants to meet the medical needs of the recipient; 
164.17     (11) homemaker services that are not an integral part of a 
164.18  personal care assistant services; 
164.19     (12) home maintenance, or chore services; 
164.20     (13) services not specified under paragraph (a); and 
164.21     (14) services not authorized by the commissioner or the 
164.22  commissioner's designee. 
164.23     (e) The recipient or responsible party may choose to 
164.24  supervise the personal care assistant or to have a qualified 
164.25  professional, as defined in section 256B.0625, subdivision 19c, 
164.26  provide the supervision.  As required under section 256B.0625, 
164.27  subdivision 19c, the county public health nurse, as a part of 
164.28  the assessment, will assist the recipient or responsible party 
164.29  to identify the most appropriate person to provide supervision 
164.30  of the personal care assistant.  Health-related delegated tasks 
164.31  performed by the personal care assistant will be under the 
164.32  supervision of a qualified professional or the direction of the 
164.33  recipient's physician.  If the recipient has a qualified 
164.34  professional, Minnesota Rules, part 9505.0335, subpart 4, 
164.35  applies. 
164.36     Sec. 31.  Minnesota Statutes 2000, section 256B.0627, 
165.1   subdivision 5, is amended to read: 
165.2      Subd. 5.  [LIMITATION ON PAYMENTS.] Medical assistance 
165.3   payments for home care services shall be limited according to 
165.4   this subdivision.  
165.5      (a)  [LIMITS ON SERVICES WITHOUT PRIOR AUTHORIZATION.] A 
165.6   recipient may receive the following home care services during a 
165.7   calendar year: 
165.8      (1) up to two face-to-face assessments to determine a 
165.9   recipient's need for personal care assistant services; 
165.10     (2) one service update done to determine a recipient's need 
165.11  for personal care assistant services; and 
165.12     (3) up to five nine skilled nurse visits.  
165.13     (b)  [PRIOR AUTHORIZATION; EXCEPTIONS.] All home care 
165.14  services above the limits in paragraph (a) must receive the 
165.15  commissioner's prior authorization, except when: 
165.16     (1) the home care services were required to treat an 
165.17  emergency medical condition that if not immediately treated 
165.18  could cause a recipient serious physical or mental disability, 
165.19  continuation of severe pain, or death.  The provider must 
165.20  request retroactive authorization no later than five working 
165.21  days after giving the initial service.  The provider must be 
165.22  able to substantiate the emergency by documentation such as 
165.23  reports, notes, and admission or discharge histories; 
165.24     (2) the home care services were provided on or after the 
165.25  date on which the recipient's eligibility began, but before the 
165.26  date on which the recipient was notified that the case was 
165.27  opened.  Authorization will be considered if the request is 
165.28  submitted by the provider within 20 working days of the date the 
165.29  recipient was notified that the case was opened; 
165.30     (3) a third-party payor for home care services has denied 
165.31  or adjusted a payment.  Authorization requests must be submitted 
165.32  by the provider within 20 working days of the notice of denial 
165.33  or adjustment.  A copy of the notice must be included with the 
165.34  request; 
165.35     (4) the commissioner has determined that a county or state 
165.36  human services agency has made an error; or 
166.1      (5) the professional nurse determines an immediate need for 
166.2   up to 40 skilled nursing or home health aide visits per calendar 
166.3   year and submits a request for authorization within 20 working 
166.4   days of the initial service date, and medical assistance is 
166.5   determined to be the appropriate payer. 
166.6      (c)  [RETROACTIVE AUTHORIZATION.] A request for retroactive 
166.7   authorization will be evaluated according to the same criteria 
166.8   applied to prior authorization requests.  
166.9      (d)  [ASSESSMENT AND SERVICE PLAN.] Assessments under 
166.10  section 256B.0627, subdivision 1, paragraph (a), shall be 
166.11  conducted initially, and at least annually thereafter, in person 
166.12  with the recipient and result in a completed service plan using 
166.13  forms specified by the commissioner.  Within 30 days of 
166.14  recipient or responsible party request for home care services, 
166.15  the assessment, the service plan, and other information 
166.16  necessary to determine medical necessity such as diagnostic or 
166.17  testing information, social or medical histories, and hospital 
166.18  or facility discharge summaries shall be submitted to the 
166.19  commissioner.  For personal care assistant services: 
166.20     (1) The amount and type of service authorized based upon 
166.21  the assessment and service plan will follow the recipient if the 
166.22  recipient chooses to change providers.  
166.23     (2) If the recipient's medical need changes, the 
166.24  recipient's provider may assess the need for a change in service 
166.25  authorization and request the change from the county public 
166.26  health nurse.  Within 30 days of the request, the public health 
166.27  nurse will determine whether to request the change in services 
166.28  based upon the provider assessment, or conduct a home visit to 
166.29  assess the need and determine whether the change is appropriate. 
166.30     (3) To continue to receive personal care assistant services 
166.31  after the first year, the recipient or the responsible party, in 
166.32  conjunction with the public health nurse, may complete a service 
166.33  update on forms developed by the commissioner according to 
166.34  criteria and procedures in subdivision 1.  
166.35     (e)  [PRIOR AUTHORIZATION.] The commissioner, or the 
166.36  commissioner's designee, shall review the assessment, service 
167.1   update, request for temporary services, service plan, and any 
167.2   additional information that is submitted.  The commissioner 
167.3   shall, within 30 days after receiving a complete request, 
167.4   assessment, and service plan, authorize home care services as 
167.5   follows:  
167.6      (1)  [HOME HEALTH SERVICES.] All home health services 
167.7   provided by a licensed nurse or a home health aide must be prior 
167.8   authorized by the commissioner or the commissioner's designee.  
167.9   Prior authorization must be based on medical necessity and 
167.10  cost-effectiveness when compared with other care options.  When 
167.11  home health services are used in combination with personal care 
167.12  and private duty nursing, the cost of all home care services 
167.13  shall be considered for cost-effectiveness.  The commissioner 
167.14  shall limit nurse and home health aide visits to no more than 
167.15  one visit each per day.  The commissioner, or the commissioner's 
167.16  designee, may authorize up to two skilled nurse visits per day. 
167.17     (2)  [PERSONAL CARE ASSISTANT SERVICES.] (i) All personal 
167.18  care assistant services and supervision by a qualified 
167.19  professional, if requested by the recipient, must be prior 
167.20  authorized by the commissioner or the commissioner's designee 
167.21  except for the assessments established in paragraph (a).  The 
167.22  amount of personal care assistant services authorized must be 
167.23  based on the recipient's home care rating.  A child may not be 
167.24  found to be dependent in an activity of daily living if because 
167.25  of the child's age an adult would either perform the activity 
167.26  for the child or assist the child with the activity and the 
167.27  amount of assistance needed is similar to the assistance 
167.28  appropriate for a typical child of the same age.  Based on 
167.29  medical necessity, the commissioner may authorize: 
167.30     (A) up to two times the average number of direct care hours 
167.31  provided in nursing facilities for the recipient's comparable 
167.32  case mix level; or 
167.33     (B) up to three times the average number of direct care 
167.34  hours provided in nursing facilities for recipients who have 
167.35  complex medical needs or are dependent in at least seven 
167.36  activities of daily living and need physical assistance with 
168.1   eating or have a neurological diagnosis; or 
168.2      (C) up to 60 percent of the average reimbursement rate, as 
168.3   of July 1, 1991, for care provided in a regional treatment 
168.4   center for recipients who have Level I behavior, plus any 
168.5   inflation adjustment as provided by the legislature for personal 
168.6   care service; or 
168.7      (D) up to the amount the commissioner would pay, as of July 
168.8   1, 1991, plus any inflation adjustment provided for home care 
168.9   services, for care provided in a regional treatment center for 
168.10  recipients referred to the commissioner by a regional treatment 
168.11  center preadmission evaluation team.  For purposes of this 
168.12  clause, home care services means all services provided in the 
168.13  home or community that would be included in the payment to a 
168.14  regional treatment center; or 
168.15     (E) up to the amount medical assistance would reimburse for 
168.16  facility care for recipients referred to the commissioner by a 
168.17  preadmission screening team established under section 256B.0911 
168.18  or 256B.092; and 
168.19     (F) a reasonable amount of time for the provision of 
168.20  supervision by a qualified professional of personal 
168.21  care assistant services, if a qualified professional is 
168.22  requested by the recipient or responsible party.  
168.23     (ii) The number of direct care hours shall be determined 
168.24  according to the annual cost report submitted to the department 
168.25  by nursing facilities.  The average number of direct care hours, 
168.26  as established by May 1, 1992, shall be calculated and 
168.27  incorporated into the home care limits on July 1, 1992.  These 
168.28  limits shall be calculated to the nearest quarter hour. 
168.29     (iii) The home care rating shall be determined by the 
168.30  commissioner or the commissioner's designee based on information 
168.31  submitted to the commissioner by the county public health nurse 
168.32  on forms specified by the commissioner.  The home care rating 
168.33  shall be a combination of current assessment tools developed 
168.34  under sections 256B.0911 and 256B.501 with an addition for 
168.35  seizure activity that will assess the frequency and severity of 
168.36  seizure activity and with adjustments, additions, and 
169.1   clarifications that are necessary to reflect the needs and 
169.2   conditions of recipients who need home care including children 
169.3   and adults under 65 years of age.  The commissioner shall 
169.4   establish these forms and protocols under this section and shall 
169.5   use an advisory group, including representatives of recipients, 
169.6   providers, and counties, for consultation in establishing and 
169.7   revising the forms and protocols. 
169.8      (iv) A recipient shall qualify as having complex medical 
169.9   needs if the care required is difficult to perform and because 
169.10  of recipient's medical condition requires more time than 
169.11  community-based standards allow or requires more skill than 
169.12  would ordinarily be required and the recipient needs or has one 
169.13  or more of the following: 
169.14     (A) daily tube feedings; 
169.15     (B) daily parenteral therapy; 
169.16     (C) wound or decubiti care; 
169.17     (D) postural drainage, percussion, nebulizer treatments, 
169.18  suctioning, tracheotomy care, oxygen, mechanical ventilation; 
169.19     (E) catheterization; 
169.20     (F) ostomy care; 
169.21     (G) quadriplegia; or 
169.22     (H) other comparable medical conditions or treatments the 
169.23  commissioner determines would otherwise require institutional 
169.24  care.  
169.25     (v) A recipient shall qualify as having Level I behavior if 
169.26  there is reasonable supporting evidence that the recipient 
169.27  exhibits, or that without supervision, observation, or 
169.28  redirection would exhibit, one or more of the following 
169.29  behaviors that cause, or have the potential to cause: 
169.30     (A) injury to the recipient's own body; 
169.31     (B) physical injury to other people; or 
169.32     (C) destruction of property. 
169.33     (vi) Time authorized for personal care relating to Level I 
169.34  behavior in subclause (v), items (A) to (C), shall be based on 
169.35  the predictability, frequency, and amount of intervention 
169.36  required. 
170.1      (vii) A recipient shall qualify as having Level II behavior 
170.2   if the recipient exhibits on a daily basis one or more of the 
170.3   following behaviors that interfere with the completion of 
170.4   personal care assistant services under subdivision 4, paragraph 
170.5   (a): 
170.6      (A) unusual or repetitive habits; 
170.7      (B) withdrawn behavior; or 
170.8      (C) offensive behavior. 
170.9      (viii) A recipient with a home care rating of Level II 
170.10  behavior in subclause (vii), items (A) to (C), shall be rated as 
170.11  comparable to a recipient with complex medical needs under 
170.12  subclause (iv).  If a recipient has both complex medical needs 
170.13  and Level II behavior, the home care rating shall be the next 
170.14  complex category up to the maximum rating under subclause (i), 
170.15  item (B). 
170.16     (3)  [PRIVATE DUTY NURSING SERVICES.] All private duty 
170.17  nursing services shall be prior authorized by the commissioner 
170.18  or the commissioner's designee.  Prior authorization for private 
170.19  duty nursing services shall be based on medical necessity and 
170.20  cost-effectiveness when compared with alternative care options.  
170.21  The commissioner may authorize medically necessary private duty 
170.22  nursing services in quarter-hour units when: 
170.23     (i) the recipient requires more individual and continuous 
170.24  care than can be provided during a nurse visit; or 
170.25     (ii) the cares are outside of the scope of services that 
170.26  can be provided by a home health aide or personal care assistant.
170.27     The commissioner may authorize: 
170.28     (A) up to two times the average amount of direct care hours 
170.29  provided in nursing facilities statewide for case mix 
170.30  classification "K" as established by the annual cost report 
170.31  submitted to the department by nursing facilities in May 1992; 
170.32     (B) private duty nursing in combination with other home 
170.33  care services up to the total cost allowed under clause (2); 
170.34     (C) up to 16 hours per day if the recipient requires more 
170.35  nursing than the maximum number of direct care hours as 
170.36  established in item (A) and the recipient meets the hospital 
171.1   admission criteria established under Minnesota Rules, parts 
171.2   9505.0500 9505.0501 to 9505.0540.  
171.3      The commissioner may authorize up to 16 hours per day of 
171.4   medically necessary private duty nursing services or up to 24 
171.5   hours per day of medically necessary private duty nursing 
171.6   services until such time as the commissioner is able to make a 
171.7   determination of eligibility for recipients who are 
171.8   cooperatively applying for home care services under the 
171.9   community alternative care program developed under section 
171.10  256B.49, or until it is determined by the appropriate regulatory 
171.11  agency that a health benefit plan is or is not required to pay 
171.12  for appropriate medically necessary health care services.  
171.13  Recipients or their representatives must cooperatively assist 
171.14  the commissioner in obtaining this determination.  Recipients 
171.15  who are eligible for the community alternative care program may 
171.16  not receive more hours of nursing under this section than would 
171.17  otherwise be authorized under section 256B.49.  
171.18     Beginning July 1, 2001, private duty nursing services shall 
171.19  be authorized for complex and regular care according to 
171.20  subdivision 1. 
171.21     (4)  [VENTILATOR-DEPENDENT RECIPIENTS.] If the recipient is 
171.22  ventilator-dependent, the monthly medical assistance 
171.23  authorization for home care services shall not exceed what the 
171.24  commissioner would pay for care at the highest cost hospital 
171.25  designated as a long-term hospital under the Medicare program.  
171.26  For purposes of this clause, home care services means all 
171.27  services provided in the home that would be included in the 
171.28  payment for care at the long-term hospital.  
171.29  "Ventilator-dependent" means an individual who receives 
171.30  mechanical ventilation for life support at least six hours per 
171.31  day and is expected to be or has been dependent for at least 30 
171.32  consecutive days.  
171.33     (f)  [PRIOR AUTHORIZATION; TIME LIMITS.] The commissioner 
171.34  or the commissioner's designee shall determine the time period 
171.35  for which a prior authorization shall be effective.  If the 
171.36  recipient continues to require home care services beyond the 
172.1   duration of the prior authorization, the home care provider must 
172.2   request a new prior authorization.  Under no circumstances, 
172.3   other than the exceptions in paragraph (b), shall a prior 
172.4   authorization be valid prior to the date the commissioner 
172.5   receives the request or for more than 12 months.  A recipient 
172.6   who appeals a reduction in previously authorized home care 
172.7   services may continue previously authorized services, other than 
172.8   temporary services under paragraph (h), pending an appeal under 
172.9   section 256.045.  The commissioner must provide a detailed 
172.10  explanation of why the authorized services are reduced in amount 
172.11  from those requested by the home care provider.  
172.12     (g)  [APPROVAL OF HOME CARE SERVICES.] The commissioner or 
172.13  the commissioner's designee shall determine the medical 
172.14  necessity of home care services, the level of caregiver 
172.15  according to subdivision 2, and the institutional comparison 
172.16  according to this subdivision, the cost-effectiveness of 
172.17  services, and the amount, scope, and duration of home care 
172.18  services reimbursable by medical assistance, based on the 
172.19  assessment, primary payer coverage determination information as 
172.20  required, the service plan, the recipient's age, the cost of 
172.21  services, the recipient's medical condition, and diagnosis or 
172.22  disability.  The commissioner may publish additional criteria 
172.23  for determining medical necessity according to section 256B.04. 
172.24     (h)  [PRIOR AUTHORIZATION REQUESTS; TEMPORARY SERVICES.] 
172.25  The agency nurse, the independently enrolled private duty nurse, 
172.26  or county public health nurse may request a temporary 
172.27  authorization for home care services by telephone.  The 
172.28  commissioner may approve a temporary level of home care services 
172.29  based on the assessment, and service or care plan information, 
172.30  and primary payer coverage determination information as required.
172.31  Authorization for a temporary level of home care services 
172.32  including nurse supervision is limited to the time specified by 
172.33  the commissioner, but shall not exceed 45 days, unless extended 
172.34  because the county public health nurse has not completed the 
172.35  required assessment and service plan, or the commissioner's 
172.36  determination has not been made.  The level of services 
173.1   authorized under this provision shall have no bearing on a 
173.2   future prior authorization. 
173.3      (i)  [PRIOR AUTHORIZATION REQUIRED IN FOSTER CARE SETTING.] 
173.4   Home care services provided in an adult or child foster care 
173.5   setting must receive prior authorization by the department 
173.6   according to the limits established in paragraph (a). 
173.7      The commissioner may not authorize: 
173.8      (1) home care services that are the responsibility of the 
173.9   foster care provider under the terms of the foster care 
173.10  placement agreement and administrative rules; 
173.11     (2) personal care assistant services when the foster care 
173.12  license holder is also the personal care provider or personal 
173.13  care assistant unless the recipient can direct the recipient's 
173.14  own care, or case management is provided as required in section 
173.15  256B.0625, subdivision 19a; 
173.16     (3) personal care assistant services when the responsible 
173.17  party is an employee of, or under contract with, or has any 
173.18  direct or indirect financial relationship with the personal care 
173.19  provider or personal care assistant, unless case management is 
173.20  provided as required in section 256B.0625, subdivision 19a; or 
173.21     (4) personal care assistant and private duty nursing 
173.22  services when the number of foster care residents is greater 
173.23  than four unless the county responsible for the recipient's 
173.24  foster placement made the placement prior to April 1, 1992, 
173.25  requests that personal care assistant and private duty nursing 
173.26  services be provided, and case management is provided as 
173.27  required in section 256B.0625, subdivision 19a. 
173.28     Sec. 32.  Minnesota Statutes 2000, section 256B.0627, 
173.29  subdivision 7, is amended to read: 
173.30     Subd. 7.  [NONCOVERED HOME CARE SERVICES.] The following 
173.31  home care services are not eligible for payment under medical 
173.32  assistance:  
173.33     (1) skilled nurse visits for the sole purpose of 
173.34  supervision of the home health aide; 
173.35     (2) a skilled nursing visit: 
173.36     (i) only for the purpose of monitoring medication 
174.1   compliance with an established medication program for a 
174.2   recipient; or 
174.3      (ii) to administer or assist with medication 
174.4   administration, including injections, prefilling syringes for 
174.5   injections, or oral medication set-up of an adult recipient, 
174.6   when as determined and documented by the registered nurse, the 
174.7   need can be met by an available pharmacy or the recipient is 
174.8   physically and mentally able to self-administer or prefill a 
174.9   medication; 
174.10     (3) home care services to a recipient who is eligible for 
174.11  covered services including hospice, if elected by the recipient, 
174.12  under the Medicare program or any other insurance held by the 
174.13  recipient; 
174.14     (4) services to other members of the recipient's household; 
174.15     (5) a visit made by a skilled nurse solely to train other 
174.16  home health agency workers; 
174.17     (6) any home care service included in the daily rate of the 
174.18  community-based residential facility where the recipient is 
174.19  residing; 
174.20     (7) nursing and rehabilitation therapy services that are 
174.21  reasonably accessible to a recipient outside the recipient's 
174.22  place of residence, excluding the assessment, counseling and 
174.23  education, and personal assistant care; 
174.24     (8) any home health agency service, excluding personal care 
174.25  assistant services and private duty nursing services, which are 
174.26  performed in a place other than the recipient's residence; and 
174.27     (9) Medicare evaluation or administrative nursing visits on 
174.28  dual-eligible recipients that do not qualify for Medicare visit 
174.29  billing. 
174.30     Sec. 33.  Minnesota Statutes 2000, section 256B.0627, 
174.31  subdivision 8, is amended to read: 
174.32     Subd. 8.  [SHARED PERSONAL CARE ASSISTANT SERVICES.] (a) 
174.33  Medical assistance payments for shared personal care assistance 
174.34  services shall be limited according to this subdivision. 
174.35     (b) Recipients of personal care assistant services may 
174.36  share staff and the commissioner shall provide a rate system for 
175.1   shared personal care assistant services.  For two persons 
175.2   sharing services, the rate paid to a provider shall not exceed 
175.3   1-1/2 times the rate paid for serving a single individual, and 
175.4   for three persons sharing services, the rate paid to a provider 
175.5   shall not exceed twice the rate paid for serving a single 
175.6   individual.  These rates apply only to situations in which all 
175.7   recipients were present and received shared services on the date 
175.8   for which the service is billed.  No more than three persons may 
175.9   receive shared services from a personal care assistant in a 
175.10  single setting. 
175.11     (c) Shared service is the provision of personal 
175.12  care assistant services by a personal care assistant to two or 
175.13  three recipients at the same time and in the same setting.  For 
175.14  the purposes of this subdivision, "setting" means: 
175.15     (1) the home or foster care home of one of the individual 
175.16  recipients; or 
175.17     (2) a child care program in which all recipients served by 
175.18  one personal care assistant are participating, which is licensed 
175.19  under chapter 245A or operated by a local school district or 
175.20  private school; or 
175.21     (3) outside the home or foster care home of one of the 
175.22  recipients when normal life activities take the recipients 
175.23  outside the home.  
175.24     The provisions of this subdivision do not apply when a 
175.25  personal care assistant is caring for multiple recipients in 
175.26  more than one setting. 
175.27     (d) The recipient or the recipient's responsible party, in 
175.28  conjunction with the county public health nurse, shall determine:
175.29     (1) whether shared personal care assistant services is an 
175.30  appropriate option based on the individual needs and preferences 
175.31  of the recipient; and 
175.32     (2) the amount of shared services allocated as part of the 
175.33  overall authorization of personal care assistant services. 
175.34     The recipient or the responsible party, in conjunction with 
175.35  the supervising qualified professional, if a qualified 
175.36  professional is requested by any one of the recipients or 
176.1   responsible parties, shall arrange the setting and grouping of 
176.2   shared services based on the individual needs and preferences of 
176.3   the recipients.  Decisions on the selection of recipients to 
176.4   share services must be based on the ages of the recipients, 
176.5   compatibility, and coordination of their care needs. 
176.6      (e) The following items must be considered by the recipient 
176.7   or the responsible party and the supervising qualified 
176.8   professional, if a qualified professional has been requested by 
176.9   any one of the recipients or responsible parties, and documented 
176.10  in the recipient's health service record: 
176.11     (1) the additional qualifications needed by the personal 
176.12  care assistant to provide care to several recipients in the same 
176.13  setting; 
176.14     (2) the additional training and supervision needed by the 
176.15  personal care assistant to ensure that the needs of the 
176.16  recipient are met appropriately and safely.  The provider must 
176.17  provide on-site supervision by a qualified professional within 
176.18  the first 14 days of shared services, and monthly thereafter, if 
176.19  supervision by a qualified provider has been requested by any 
176.20  one of the recipients or responsible parties; 
176.21     (3) the setting in which the shared services will be 
176.22  provided; 
176.23     (4) the ongoing monitoring and evaluation of the 
176.24  effectiveness and appropriateness of the service and process 
176.25  used to make changes in service or setting; and 
176.26     (5) a contingency plan which accounts for absence of the 
176.27  recipient in a shared services setting due to illness or other 
176.28  circumstances and staffing contingencies. 
176.29     (f) The provider must offer the recipient or the 
176.30  responsible party the option of shared or one-on-one personal 
176.31  care assistant services.  The recipient or the responsible party 
176.32  can withdraw from participating in a shared services arrangement 
176.33  at any time. 
176.34     (g) In addition to documentation requirements under 
176.35  Minnesota Rules, part 9505.2175, a personal care provider must 
176.36  meet documentation requirements for shared personal care 
177.1   assistant services and must document the following in the health 
177.2   service record for each individual recipient sharing services: 
177.3      (1) permission by the recipient or the recipient's 
177.4   responsible party, if any, for the maximum number of shared 
177.5   services hours per week chosen by the recipient; 
177.6      (2) permission by the recipient or the recipient's 
177.7   responsible party, if any, for personal care assistant services 
177.8   provided outside the recipient's residence; 
177.9      (3) permission by the recipient or the recipient's 
177.10  responsible party, if any, for others to receive shared services 
177.11  in the recipient's residence; 
177.12     (4) revocation by the recipient or the recipient's 
177.13  responsible party, if any, of the shared service authorization, 
177.14  or the shared service to be provided to others in the 
177.15  recipient's residence, or the shared service to be provided 
177.16  outside the recipient's residence; 
177.17     (5) supervision of the shared personal care assistant 
177.18  services by the qualified professional, if a qualified 
177.19  professional is requested by one of the recipients or 
177.20  responsible parties, including the date, time of day, number of 
177.21  hours spent supervising the provision of shared services, 
177.22  whether the supervision was face-to-face or another method of 
177.23  supervision, changes in the recipient's condition, shared 
177.24  services scheduling issues and recommendations; 
177.25     (6) documentation by the qualified professional, if a 
177.26  qualified professional is requested by one of the recipients or 
177.27  responsible parties, of telephone calls or other discussions 
177.28  with the personal care assistant regarding services being 
177.29  provided to the recipient who has requested the supervision; and 
177.30     (7) daily documentation of the shared services provided by 
177.31  each identified personal care assistant including: 
177.32     (i) the names of each recipient receiving shared services 
177.33  together; 
177.34     (ii) the setting for the shared services, including the 
177.35  starting and ending times that the recipient received shared 
177.36  services; and 
178.1      (iii) notes by the personal care assistant regarding 
178.2   changes in the recipient's condition, problems that may arise 
178.3   from the sharing of services, scheduling issues, care issues, 
178.4   and other notes as required by the qualified professional, if a 
178.5   qualified professional is requested by one of the recipients or 
178.6   responsible parties. 
178.7      (h) Unless otherwise provided in this subdivision, all 
178.8   other statutory and regulatory provisions relating to personal 
178.9   care assistant services apply to shared services. 
178.10     (i) In the event that supervision by a qualified 
178.11  professional has been requested by one or more recipients, but 
178.12  not by all of the recipients, the supervision duties of the 
178.13  qualified professional shall be limited to only those recipients 
178.14  who have requested the supervision. 
178.15     Nothing in this subdivision shall be construed to reduce 
178.16  the total number of hours authorized for an individual recipient.
178.17     Sec. 34.  Minnesota Statutes 2000, section 256B.0627, 
178.18  subdivision 10, is amended to read: 
178.19     Subd. 10.  [FISCAL AGENT INTERMEDIARY OPTION AVAILABLE FOR 
178.20  PERSONAL CARE ASSISTANT SERVICES.] (a) "Fiscal agent option" is 
178.21  an option that allows the recipient to: 
178.22     (1) use a fiscal agent instead of a personal care provider 
178.23  organization; 
178.24     (2) supervise the personal care assistant; and 
178.25     (3) use a consulting professional. 
178.26     The commissioner may allow a recipient of personal care 
178.27  assistant services to use a fiscal agent intermediary to assist 
178.28  the recipient in paying and accounting for medically necessary 
178.29  covered personal care assistant services authorized in 
178.30  subdivision 4 and within the payment parameters of subdivision 
178.31  5.  Unless otherwise provided in this subdivision, all other 
178.32  statutory and regulatory provisions relating to personal care 
178.33  assistant services apply to a recipient using the fiscal agent 
178.34  intermediary option. 
178.35     (b) The recipient or responsible party shall: 
178.36     (1) hire, and terminate the personal care assistant and 
179.1   consulting professional, with the fiscal agent recruit, hire, 
179.2   and terminate a qualified professional, if a qualified 
179.3   professional is requested by the recipient or responsible party; 
179.4      (2) recruit the personal care assistant and consulting 
179.5   professional and orient and train the personal care assistant in 
179.6   areas that do not require professional delegation as determined 
179.7   by the county public health nurse verify and document the 
179.8   credentials of the qualified professional, if a qualified 
179.9   professional is requested by the recipient or responsible party; 
179.10     (3) supervise and evaluate the personal care assistant in 
179.11  areas that do not require professional delegation as determined 
179.12  in the assessment; 
179.13     (4) cooperate with a consulting develop a service plan 
179.14  based on physician orders and public health nurse assessment 
179.15  with the assistance of a qualified professional and implement 
179.16  recommendations pertaining to the health and safety of the 
179.17  recipient, if a qualified professional is requested by the 
179.18  recipient or responsible party, that addresses the health and 
179.19  safety of the recipient; 
179.20     (5) hire a qualified professional to train and supervise 
179.21  the performance of delegated tasks done by (4) recruit, hire, 
179.22  and terminate the personal care assistant; 
179.23     (6) monitor services and verify in writing the hours worked 
179.24  by the personal care assistant and the consulting (5) orient and 
179.25  train the personal care assistant with assistance as needed from 
179.26  the qualified professional; 
179.27     (7) develop and revise a care plan with assistance from a 
179.28  consulting (6) supervise and evaluate the personal care 
179.29  assistant with assistance as needed from the recipient's 
179.30  physician or the qualified professional; 
179.31     (8) verify and document the credentials of the consulting 
179.32  (7) monitor and verify in writing and report to the fiscal 
179.33  intermediary the number of hours worked by the personal care 
179.34  assistant and the qualified professional; and 
179.35     (9) (8) enter into a written agreement, as specified in 
179.36  paragraph (f). 
180.1      (c) The duties of the fiscal agent intermediary shall be to:
180.2      (1) bill the medical assistance program for personal care 
180.3   assistant and consulting qualified professional services; 
180.4      (2) request and secure background checks on personal care 
180.5   assistants and consulting qualified professionals according to 
180.6   section 245A.04; 
180.7      (3) pay the personal care assistant and consulting 
180.8   qualified professional based on actual hours of services 
180.9   provided; 
180.10     (4) withhold and pay all applicable federal and state 
180.11  taxes; 
180.12     (5) verify and document keep records of hours worked by the 
180.13  personal care assistant and consulting qualified professional; 
180.14     (6) make the arrangements and pay unemployment insurance, 
180.15  taxes, workers' compensation, liability insurance, and other 
180.16  benefits, if any; 
180.17     (7) enroll in the medical assistance program as a fiscal 
180.18  agent intermediary; and 
180.19     (8) enter into a written agreement as specified in 
180.20  paragraph (f) before services are provided. 
180.21     (d) The fiscal agent intermediary: 
180.22     (1) may not be related to the recipient, consulting 
180.23  qualified professional, or the personal care assistant; 
180.24     (2) must ensure arm's length transactions with the 
180.25  recipient and personal care assistant; and 
180.26     (3) shall be considered a joint employer of the personal 
180.27  care assistant and consulting qualified professional to the 
180.28  extent specified in this section. 
180.29     The fiscal agent intermediary or owners of the entity that 
180.30  provides fiscal agent intermediary services under this 
180.31  subdivision must pass a criminal background check as required in 
180.32  section 256B.0627, subdivision 1, paragraph (e). 
180.33     (e) If the recipient or responsible party requests a 
180.34  qualified professional, the consulting qualified professional 
180.35  providing assistance to the recipient shall meet the 
180.36  qualifications specified in section 256B.0625, subdivision 19c.  
181.1   The consulting qualified professional shall assist the recipient 
181.2   in developing and revising a plan to meet the 
181.3   recipient's assessed needs, and supervise the performance of 
181.4   delegated tasks, as determined by the public health nurse as 
181.5   assessed by the public health nurse.  In performing this 
181.6   function, the consulting qualified professional must visit the 
181.7   recipient in the recipient's home at least once annually.  
181.8   The consulting qualified professional must report to the local 
181.9   county public health nurse concerns relating to the health and 
181.10  safety of the recipient, and any suspected abuse, neglect, or 
181.11  financial exploitation of the recipient to the appropriate 
181.12  authorities.  
181.13     (f) The fiscal agent intermediary, recipient or responsible 
181.14  party, personal care assistant, and consulting qualified 
181.15  professional shall enter into a written agreement before 
181.16  services are started.  The agreement shall include: 
181.17     (1) the duties of the recipient, qualified professional, 
181.18  personal care assistant, and fiscal agent based on paragraphs 
181.19  (a) to (e); 
181.20     (2) the salary and benefits for the personal care assistant 
181.21  and those providing professional consultation the qualified 
181.22  professional; 
181.23     (3) the administrative fee of the fiscal agent intermediary 
181.24  and services paid for with that fee, including background check 
181.25  fees; 
181.26     (4) procedures to respond to billing or payment complaints; 
181.27  and 
181.28     (5) procedures for hiring and terminating the personal care 
181.29  assistant and those providing professional consultation the 
181.30  qualified professional. 
181.31     (g) The rates paid for personal care assistant services, 
181.32  qualified professional assistance services, and fiscal agency 
181.33  intermediary services under this subdivision shall be the same 
181.34  rates paid for personal care assistant services and qualified 
181.35  professional services under subdivision 2 respectively.  Except 
181.36  for the administrative fee of the fiscal agent intermediary 
182.1   specified in paragraph (f), the remainder of the rates paid to 
182.2   the fiscal agent intermediary must be used to pay for the salary 
182.3   and benefits for the personal care assistant or those providing 
182.4   professional consultation the qualified professional. 
182.5      (h) As part of the assessment defined in subdivision 1, the 
182.6   following conditions must be met to use or continue use of a 
182.7   fiscal agent intermediary: 
182.8      (1) the recipient must be able to direct the recipient's 
182.9   own care, or the responsible party for the recipient must be 
182.10  readily available to direct the care of the personal care 
182.11  assistant; 
182.12     (2) the recipient or responsible party must be 
182.13  knowledgeable of the health care needs of the recipient and be 
182.14  able to effectively communicate those needs; 
182.15     (3) a face-to-face assessment must be conducted by the 
182.16  local county public health nurse at least annually, or when 
182.17  there is a significant change in the recipient's condition or 
182.18  change in the need for personal care assistant services.  The 
182.19  county public health nurse shall determine the services that 
182.20  require professional delegation, if any, and the amount and 
182.21  frequency of related supervision; 
182.22     (4) the recipient cannot select the shared services option 
182.23  as specified in subdivision 8; and 
182.24     (5) parties must be in compliance with the written 
182.25  agreement specified in paragraph (f). 
182.26     (i) The commissioner shall deny, revoke, or suspend the 
182.27  authorization to use the fiscal agent intermediary option if: 
182.28     (1) it has been determined by the consulting qualified 
182.29  professional or local county public health nurse that the use of 
182.30  this option jeopardizes the recipient's health and safety; 
182.31     (2) the parties have failed to comply with the written 
182.32  agreement specified in paragraph (f); or 
182.33     (3) the use of the option has led to abusive or fraudulent 
182.34  billing for personal care assistant services.  
182.35     The recipient or responsible party may appeal the 
182.36  commissioner's action according to section 256.045.  The denial, 
183.1   revocation, or suspension to use the fiscal agent intermediary 
183.2   option shall not affect the recipient's authorized level of 
183.3   personal care assistant services as determined in subdivision 5. 
183.4      Sec. 35.  Minnesota Statutes 2000, section 256B.0627, 
183.5   subdivision 11, is amended to read: 
183.6      Subd. 11.  [SHARED PRIVATE DUTY NURSING CARE OPTION.] (a) 
183.7   Medical assistance payments for shared private duty nursing 
183.8   services by a private duty nurse shall be limited according to 
183.9   this subdivision.  For the purposes of this section, "private 
183.10  duty nursing agency" means an agency licensed under chapter 144A 
183.11  to provide private duty nursing services. 
183.12     (b) Recipients of private duty nursing services may share 
183.13  nursing staff and the commissioner shall provide a rate 
183.14  methodology for shared private duty nursing.  For two persons 
183.15  sharing nursing care, the rate paid to a provider shall not 
183.16  exceed 1.5 times the nonwaivered regular private duty nursing 
183.17  rates paid for serving a single individual who is not ventilator 
183.18  dependent, by a registered nurse or licensed practical nurse.  
183.19  These rates apply only to situations in which both recipients 
183.20  are present and receive shared private duty nursing care on the 
183.21  date for which the service is billed.  No more than two persons 
183.22  may receive shared private duty nursing services from a private 
183.23  duty nurse in a single setting. 
183.24     (c) Shared private duty nursing care is the provision of 
183.25  nursing services by a private duty nurse to two recipients at 
183.26  the same time and in the same setting.  For the purposes of this 
183.27  subdivision, "setting" means: 
183.28     (1) the home or foster care home of one of the individual 
183.29  recipients; or 
183.30     (2) a child care program licensed under chapter 245A or 
183.31  operated by a local school district or private school; or 
183.32     (3) an adult day care service licensed under chapter 245A; 
183.33  or 
183.34     (4) outside the home or foster care home of one of the 
183.35  recipients when normal life activities take the recipients 
183.36  outside the home.  
184.1      This subdivision does not apply when a private duty nurse 
184.2   is caring for multiple recipients in more than one setting. 
184.3      (d) The recipient or the recipient's legal representative, 
184.4   and the recipient's physician, in conjunction with the home 
184.5   health care agency, shall determine: 
184.6      (1) whether shared private duty nursing care is an 
184.7   appropriate option based on the individual needs and preferences 
184.8   of the recipient; and 
184.9      (2) the amount of shared private duty nursing services 
184.10  authorized as part of the overall authorization of nursing 
184.11  services. 
184.12     (e) The recipient or the recipient's legal representative, 
184.13  in conjunction with the private duty nursing agency, shall 
184.14  approve the setting, grouping, and arrangement of shared private 
184.15  duty nursing care based on the individual needs and preferences 
184.16  of the recipients.  Decisions on the selection of recipients to 
184.17  share services must be based on the ages of the recipients, 
184.18  compatibility, and coordination of their care needs. 
184.19     (f) The following items must be considered by the recipient 
184.20  or the recipient's legal representative and the private duty 
184.21  nursing agency, and documented in the recipient's health service 
184.22  record: 
184.23     (1) the additional training needed by the private duty 
184.24  nurse to provide care to two recipients in the same setting and 
184.25  to ensure that the needs of the recipients are met appropriately 
184.26  and safely; 
184.27     (2) the setting in which the shared private duty nursing 
184.28  care will be provided; 
184.29     (3) the ongoing monitoring and evaluation of the 
184.30  effectiveness and appropriateness of the service and process 
184.31  used to make changes in service or setting; 
184.32     (4) a contingency plan which accounts for absence of the 
184.33  recipient in a shared private duty nursing setting due to 
184.34  illness or other circumstances; 
184.35     (5) staffing backup contingencies in the event of employee 
184.36  illness or absence; and 
185.1      (6) arrangements for additional assistance to respond to 
185.2   urgent or emergency care needs of the recipients. 
185.3      (g) The provider must offer the recipient or responsible 
185.4   party the option of shared or one-on-one private duty nursing 
185.5   services.  The recipient or responsible party can withdraw from 
185.6   participating in a shared service arrangement at any time. 
185.7      (h) The private duty nursing agency must document the 
185.8   following in the health service record for each individual 
185.9   recipient sharing private duty nursing care: 
185.10     (1) permission by the recipient or the recipient's legal 
185.11  representative for the maximum number of shared nursing care 
185.12  hours per week chosen by the recipient; 
185.13     (2) permission by the recipient or the recipient's legal 
185.14  representative for shared private duty nursing services provided 
185.15  outside the recipient's residence; 
185.16     (3) permission by the recipient or the recipient's legal 
185.17  representative for others to receive shared private duty nursing 
185.18  services in the recipient's residence; 
185.19     (4) revocation by the recipient or the recipient's legal 
185.20  representative of the shared private duty nursing care 
185.21  authorization, or the shared care to be provided to others in 
185.22  the recipient's residence, or the shared private duty nursing 
185.23  services to be provided outside the recipient's residence; and 
185.24     (5) daily documentation of the shared private duty nursing 
185.25  services provided by each identified private duty nurse, 
185.26  including: 
185.27     (i) the names of each recipient receiving shared private 
185.28  duty nursing services together; 
185.29     (ii) the setting for the shared services, including the 
185.30  starting and ending times that the recipient received shared 
185.31  private duty nursing care; and 
185.32     (iii) notes by the private duty nurse regarding changes in 
185.33  the recipient's condition, problems that may arise from the 
185.34  sharing of private duty nursing services, and scheduling and 
185.35  care issues. 
185.36     (i) Unless otherwise provided in this subdivision, all 
186.1   other statutory and regulatory provisions relating to private 
186.2   duty nursing services apply to shared private duty nursing 
186.3   services. 
186.4      Nothing in this subdivision shall be construed to reduce 
186.5   the total number of private duty nursing hours authorized for an 
186.6   individual recipient under subdivision 5. 
186.7      Sec. 36.  Minnesota Statutes 2000, section 256B.0627, is 
186.8   amended by adding a subdivision to read: 
186.9      Subd. 13.  [CONSUMER-DIRECTED HOME CARE DEMONSTRATION 
186.10  PROJECT.] (a) Upon the receipt of federal waiver authority, the 
186.11  commissioner shall implement a consumer-directed home care 
186.12  demonstration project.  The consumer-directed home care 
186.13  demonstration project must demonstrate and evaluate the outcomes 
186.14  of a consumer-directed service delivery alternative to improve 
186.15  access, increase consumer control and accountability over 
186.16  available resources, and enable the use of supports that are 
186.17  more individualized and cost-effective for eligible medical 
186.18  assistance recipients receiving certain medical assistance home 
186.19  care services.  The consumer-directed home care demonstration 
186.20  project will be administered locally by county agencies, tribal 
186.21  governments, or administrative entities under contract with the 
186.22  state in regions where counties choose not to provide this 
186.23  service. 
186.24     (b) Grant awards for persons who have been receiving 
186.25  medical assistance covered personal care, home health aide, or 
186.26  private duty nursing services for a period of 12 consecutive 
186.27  months or more prior to enrollment in the consumer-directed home 
186.28  care demonstration project will be established on a case-by-case 
186.29  basis using historical service expenditure data.  An average 
186.30  monthly expenditure for each continuing enrollee will be 
186.31  calculated based on historical expenditures made on behalf of 
186.32  the enrollee for personal care, home health aide, or private 
186.33  duty nursing services during the 12 month period directly prior 
186.34  to enrollment in the project.  The grant award will equal 90 
186.35  percent of the average monthly expenditure. 
186.36     (c) Grant awards for project enrollees who have been 
187.1   receiving medical assistance covered personal care, home health 
187.2   aide, or private duty nursing services for a period of less than 
187.3   12 consecutive months prior to project enrollment will be 
187.4   calculated on a case-by-case basis using the service 
187.5   authorization in place at the time of enrollment.  The total 
187.6   number of units of personal care, home health aide, or private 
187.7   duty nursing services the enrollee has been authorized to 
187.8   receive will be converted to the total cost of the authorized 
187.9   services in a given month using the statewide average service 
187.10  payment rates.  To determine an estimated monthly expenditure, 
187.11  the total authorized monthly personal care, home health aide or 
187.12  private duty nursing service costs will be reduced by a 
187.13  percentage rate equivalent to the difference between the 
187.14  statewide average service authorization and the statewide 
187.15  average utilization rate for each of the services by medical 
187.16  assistance eligibles during the most recent fiscal year for 
187.17  which 12 months of data is available.  The grant award will 
187.18  equal 90 percent of the estimated monthly expenditure. 
187.19     (d) The state of Minnesota, county agencies, tribal 
187.20  governments, or administrative entities under contract with the 
187.21  state that participate in the implementation and administration 
187.22  of the consumer-directed home care demonstration project, shall 
187.23  not be liable for damages, injuries, or liabilities sustained 
187.24  through the purchase of support by the individual, the 
187.25  individual's family, or the authorized representative under this 
187.26  section with funds received through the consumer-directed home 
187.27  care demonstration project.  Liabilities include but are not 
187.28  limited to:  workers' compensation liability, the Federal 
187.29  Insurance Contributions Act (FICA), or the Federal Unemployment 
187.30  Tax Act (FUTA). 
187.31     Sec. 37.  Minnesota Statutes 2000, section 256B.0627, is 
187.32  amended by adding a subdivision to read: 
187.33     Subd. 14.  [TELEHOMECARE; SKILLED NURSE VISITS.] Medical 
187.34  assistance covers skilled nurse visits according to section 
187.35  256B.0625, subdivision 6a, provided via telehomecare, for 
187.36  services which do not require hands-on care between the home 
188.1   care nurse and recipient.  The provision of telehomecare must be 
188.2   made via live, two-way interactive audiovisual technology and 
188.3   may be augmented by utilizing store-and-forward technologies.  
188.4   Store-and-forward technology includes telehomecare services that 
188.5   do not occur in real time via synchronous transmissions, and 
188.6   that do not require a face-to-face encounter with the recipient 
188.7   for all or any part of any such telehomecare visit.  A 
188.8   communication between the home care nurse and recipient that 
188.9   consists solely of a telephone conversation, facsimile, 
188.10  electronic mail, or a consultation between two health care 
188.11  practitioners, is not to be considered a telehomecare visit.  
188.12  Multiple daily skilled nurse visits provided via telehomecare 
188.13  are allowed.  Coverage of telehomecare is limited to two visits 
188.14  per day.  All skilled nurse visits provided via telehomecare 
188.15  must be prior authorized by the commissioner or the 
188.16  commissioner's designee and will be covered at the same 
188.17  allowable rate as skilled nurse visits provided in-person. 
188.18     Sec. 38.  Minnesota Statutes 2000, section 256B.0627, is 
188.19  amended by adding a subdivision to read: 
188.20     Subd. 15.  [THERAPIES THROUGH HOME HEALTH AGENCIES.] (a)  
188.21  [PHYSICAL THERAPY.] Medical assistance covers physical therapy 
188.22  and related services, including specialized maintenance 
188.23  therapy.  Services provided by a physical therapy assistant 
188.24  shall be reimbursed at the same rate as services performed by a 
188.25  physical therapist when the services of the physical therapy 
188.26  assistant are provided under the direction of a physical 
188.27  therapist who is on the premises.  Services provided by a 
188.28  physical therapy assistant that are provided under the direction 
188.29  of a physical therapist who is not on the premises shall be 
188.30  reimbursed at 65 percent of the physical therapist rate.  
188.31  Direction of the physical therapy assistant must be provided by 
188.32  the physical therapist as described in Minnesota Rules, part 
188.33  9505.0390, subpart 1, item B.  The physical therapist and 
188.34  physical therapist assistant may not both bill for services 
188.35  provided to a recipient on the same day. 
188.36     (b)  [OCCUPATIONAL THERAPY.] Medical assistance covers 
189.1   occupational therapy and related services, including specialized 
189.2   maintenance therapy.  Services provided by an occupational 
189.3   therapy assistant shall be reimbursed at the same rate as 
189.4   services performed by an occupational therapist when the 
189.5   services of the occupational therapy assistant are provided 
189.6   under the direction of the occupational therapist who is on the 
189.7   premises.  Services provided by an occupational therapy 
189.8   assistant under the direction of an occupational therapist who 
189.9   is not on the premises shall be reimbursed at 65 percent of the 
189.10  occupational therapist rate.  Direction of the occupational 
189.11  therapy assistant must be provided by the occupational therapist 
189.12  as described in Minnesota Rules, part 9505.0390, subpart 1, item 
189.13  B.  The occupational therapist and occupational therapist 
189.14  assistant may not both bill for services provided to a recipient 
189.15  on the same day. 
189.16     Sec. 39.  Minnesota Statutes 2000, section 256B.0627, is 
189.17  amended by adding a subdivision to read: 
189.18     Subd. 16.  [HARDSHIP CRITERIA; PRIVATE DUTY NURSING.] (a) 
189.19  Payment is allowed for extraordinary services that require 
189.20  specialized nursing skills and are provided by parents of minor 
189.21  children, spouses, and legal guardians who are providing private 
189.22  duty nursing care under the following conditions: 
189.23     (1) the provision of these services is not legally required 
189.24  of the parents, spouses, or legal guardians; 
189.25     (2) the services are necessary to prevent hospitalization 
189.26  of the recipient; and 
189.27     (3) the recipient is eligible for state plan home care or a 
189.28  home and community-based waiver and one of the following 
189.29  hardship criteria are met: 
189.30     (i) the parent, spouse, or legal guardian resigns from a 
189.31  part-time or full-time job to provide nursing care for the 
189.32  recipient; or 
189.33     (ii) the parent, spouse, or legal guardian goes from a 
189.34  full-time to a part-time job with less compensation to provide 
189.35  nursing care for the recipient; or 
189.36     (iii) the parent, spouse, or legal guardian takes a leave 
190.1   of absence without pay to provide nursing care for the 
190.2   recipient; or 
190.3      (iv) because of labor conditions, special language needs, 
190.4   or intermittent hours of care needed, the parent, spouse, or 
190.5   legal guardian is needed in order to provide adequate private 
190.6   duty nursing services to meet the medical needs of the recipient.
190.7      (b) Private duty nursing may be provided by a parent, 
190.8   spouse, or legal guardian who is a nurse licensed in Minnesota.  
190.9   Private duty nursing services provided by a parent, spouse, or 
190.10  legal guardian cannot be used in lieu of nursing services 
190.11  covered and available under liable third-party payers, including 
190.12  Medicare.  The private duty nursing provided by a parent, 
190.13  spouse, or legal guardian must be included in the service plan.  
190.14  Authorized skilled nursing services provided by the parent, 
190.15  spouse, or legal guardian may not exceed 50 percent of the total 
190.16  approved nursing hours, or eight hours per day, whichever is 
190.17  less, up to a maximum of 40 hours per week.  Nothing in this 
190.18  subdivision precludes the parent's, spouse's, or legal 
190.19  guardian's obligation of assuming the nonreimbursed family 
190.20  responsibilities of emergency backup caregiver and primary 
190.21  caregiver. 
190.22     (c) A parent or a spouse may not be paid to provide private 
190.23  duty nursing care if the parent or spouse fails to pass a 
190.24  criminal background check according to section 245A.04, or if it 
190.25  has been determined by the home health agency, the case manager, 
190.26  or the physician that the private duty nursing care provided by 
190.27  the parent, spouse, or legal guardian is unsafe. 
190.28     Sec. 40.  Minnesota Statutes 2000, section 256B.0627, is 
190.29  amended by adding a subdivision to read: 
190.30     Subd. 17.  [QUALITY ASSURANCE PLAN FOR PERSONAL CARE 
190.31  ASSISTANT SERVICES.] The commissioner shall establish a quality 
190.32  assurance plan for personal care assistant services that 
190.33  includes: 
190.34     (1) performance-based provider agreements; 
190.35     (2) meaningful consumer input, which may include consumer 
190.36  surveys, that measure the extent to which participants receive 
191.1   the services and supports described in the individual plan and 
191.2   participant satisfaction with such services and supports; 
191.3      (3) ongoing monitoring of the health and well-being of 
191.4   consumers; and 
191.5      (4) an ongoing public process for development, 
191.6   implementation, and review of the quality assurance plan.  
191.7      Sec. 41.  Minnesota Statutes 2000, section 256B.0911, is 
191.8   amended by adding a subdivision to read: 
191.9      Subd. 4a.  [PREADMISSION SCREENING OF INDIVIDUALS UNDER 65 
191.10  YEARS OF AGE.] (a) It is the policy of the state of Minnesota to 
191.11  ensure that individuals with disabilities or chronic illness are 
191.12  served in the most integrated setting appropriate to their needs 
191.13  and have the necessary information to make informed choices 
191.14  about home and community-based service options. 
191.15     (b) Individuals under 65 years of age who are admitted to a 
191.16  nursing facility from a hospital must be screened prior to 
191.17  admission as outlined in subdivision 4. 
191.18     (c) Individuals under 65 years of age who are admitted to 
191.19  nursing facilities with only a telephone screening must receive 
191.20  a face-to-face assessment from the long-term care consultation 
191.21  team member of the county in which the facility is located or 
191.22  from the recipient's county case manager within 20 working days 
191.23  of admission. 
191.24     (d) At the face-to-face assessment, the long-term care 
191.25  consultation team member or county case manager must perform the 
191.26  activities required under subdivision 3. 
191.27     (e) For individuals under 21 years of age, the screening or 
191.28  assessment which recommends nursing facility admission must be 
191.29  approved by the commissioner before the individual is admitted 
191.30  to the nursing facility. 
191.31     (f) In the event that an individual under 65 years of age 
191.32  is admitted to a nursing facility on an emergency basis, the 
191.33  county must be notified of the admission on the next working 
191.34  day, and a face-to-face assessment as described in paragraph (c) 
191.35  must be conducted within 20 working days of admission. 
191.36     (g) At the face-to-face assessment, the long-term care 
192.1   consultation team member or the case manager must present 
192.2   information about home and community-based options so the 
192.3   individual can make informed choices.  If the individual chooses 
192.4   home and community-based services, the long-term care 
192.5   consultation team member or case manager must complete a written 
192.6   relocation plan within 20 working days of the visit.  The plan 
192.7   shall describe the services needed to move out of the facility 
192.8   and a time line for the move which is designed to ensure a 
192.9   smooth transition to the individual's home and community. 
192.10     (h) An individual under 65 years of age residing in a 
192.11  nursing facility shall receive a face-to-face assessment at 
192.12  least every 12 months to review the person's service choices and 
192.13  available alternatives unless the individual indicates, in 
192.14  writing, that annual visits are not desired.  In this case, the 
192.15  individual must receive a face-to-face assessment at least once 
192.16  every 36 months for the same purposes. 
192.17     (i) Notwithstanding the provisions of subdivision 6, the 
192.18  commissioner may pay county agencies directly for face-to-face 
192.19  assessments for individuals who are eligible for medical 
192.20  assistance, under 65 years of age, and being considered for 
192.21  placement or residing in a nursing facility. 
192.22     Sec. 42.  Minnesota Statutes 2000, section 256B.0916, 
192.23  subdivision 1, is amended to read: 
192.24     Subdivision 1.  [REDUCTION OF WAITING LIST.] (a) The 
192.25  legislature recognizes that as of January 1, 1999, 3,300 persons 
192.26  with mental retardation or related conditions have been screened 
192.27  and determined eligible for the home and community-based waiver 
192.28  services program for persons with mental retardation or related 
192.29  conditions.  Many wait for several years before receiving 
192.30  service. 
192.31     (b) The waiting list for this program shall be reduced or 
192.32  eliminated by June 30, 2003.  In order to reduce the number of 
192.33  eligible persons waiting for identified services provided 
192.34  through the home and community-based waiver for persons with 
192.35  mental retardation or related conditions, during the period from 
192.36  July 1, 1999, to June 30, 2003, funding shall be increased to 
193.1   add 100 additional eligible persons each year beyond the 
193.2   February 1999 medical assistance forecast. 
193.3      (c) The commissioner shall allocate resources in such a 
193.4   manner as to use all resources budgeted during a biennium for 
193.5   the home and community-based waiver for persons with mental 
193.6   retardation or related conditions according to the priorities 
193.7   listed in subdivision 2, paragraph (b), and then to serve other 
193.8   persons on the waiting list.  Resources allocated for a fiscal 
193.9   year to serve persons affected by public and private sector 
193.10  ICF/MR closures, but not expected to be expended for that 
193.11  purpose, must be reallocated within that fiscal year to serve 
193.12  other persons on the waiting list, and the number of waiver 
193.13  diversion slots shall be adjusted accordingly. 
193.14     (d) For fiscal year 2001, at least one-half of the increase 
193.15  in funding over the previous year provided in the February 1999 
193.16  medical assistance forecast for the home and community-based 
193.17  waiver for persons with mental retardation and related 
193.18  conditions, including changes made by the 1999 legislature, must 
193.19  be used to serve persons who are not affected by public and 
193.20  private sector ICF/MR closures. 
193.21     (e) The commissioner of finance shall not reduce the 
193.22  spending forecast for the coming biennium, if at the time of the 
193.23  forecast there is a waiting list for waiver services for persons 
193.24  with mental retardation or related conditions who need services 
193.25  within the next 30 months.  Funds that would have resulted from 
193.26  a projected reduction in spending must be used by the 
193.27  commissioner of human services to serve persons with 
193.28  developmental disabilities through the home and community-based 
193.29  waiver for persons with mental retardation or related conditions.
193.30     Sec. 43.  Minnesota Statutes 2000, section 256B.0916, is 
193.31  amended by adding a subdivision to read: 
193.32     Subd. 6a.  [STATEWIDE AVAILABILITY OF CONSUMER-DIRECTED 
193.33  COMMUNITY SUPPORT SERVICES.] (a) The commissioner shall submit 
193.34  to the federal Health Care Financing Administration by August 1, 
193.35  2001, an amendment to the home and community-based waiver for 
193.36  persons with mental retardation or related conditions to make 
194.1   consumer-directed community support services available in every 
194.2   county of the state by January 1, 2002. 
194.3      (b) If a county declines to meet the requirements for 
194.4   provision of consumer-directed community supports, the 
194.5   commissioner shall contract with another county, a group of 
194.6   counties, or a private agency to plan for and administer 
194.7   consumer-directed community supports in that county. 
194.8      (c) The state of Minnesota, county agencies, tribal 
194.9   governments, or administrative entities under contract to 
194.10  participate in the implementation and administration of the home 
194.11  and community-based waiver for persons with mental retardation 
194.12  or a related condition, shall not be liable for damages, 
194.13  injuries, or liabilities sustained through the purchase of 
194.14  support by the individual, the individual's family, or the 
194.15  authorized representative with funds received through the 
194.16  consumer-directed community support service under this section.  
194.17  Liabilities include but are not limited to:  workers' 
194.18  compensation liability, the Federal Insurance Contributions Act 
194.19  (FICA), or the Federal Unemployment Tax Act (FUTA). 
194.20     Sec. 44.  Minnesota Statutes 2000, section 256B.0916, 
194.21  subdivision 7, is amended to read: 
194.22     Subd. 7.  [ANNUAL REPORT BY COMMISSIONER.] Beginning 
194.23  October 1, 1999, and each October 1 November 1, 2001, and each 
194.24  November 1 thereafter, the commissioner shall issue an annual 
194.25  report on county and state use of available resources for the 
194.26  home and community-based waiver for persons with mental 
194.27  retardation or related conditions.  For each county or county 
194.28  partnership, the report shall include: 
194.29     (1) the amount of funds allocated but not used; 
194.30     (2) the county specific allowed reserve amount approved and 
194.31  used; 
194.32     (3) the number, ages, and living situations of individuals 
194.33  screened and waiting for services; 
194.34     (4) the urgency of need for services to begin within one, 
194.35  two, or more than two years for each individual; 
194.36     (5) the services needed; 
195.1      (6) the number of additional persons served by approval of 
195.2   increased capacity within existing allocations; 
195.3      (7) results of action by the commissioner to streamline 
195.4   administrative requirements and improve county resource 
195.5   management; and 
195.6      (8) additional action that would decrease the number of 
195.7   those eligible and waiting for waivered services. 
195.8   The commissioner shall specify intended outcomes for the program 
195.9   and the degree to which these specified outcomes are attained. 
195.10     Sec. 45.  Minnesota Statutes 2000, section 256B.0916, 
195.11  subdivision 9, is amended to read: 
195.12     Subd. 9.  [LEGAL REPRESENTATIVE PARTICIPATION EXCEPTION.] 
195.13  The commissioner, in cooperation with representatives of 
195.14  counties, service providers, service recipients, family members, 
195.15  legal representatives and advocates, shall develop criteria to 
195.16  allow legal representatives to be reimbursed for providing 
195.17  specific support services to meet the person's needs when a plan 
195.18  which assures health and safety has been agreed upon and carried 
195.19  out by the legal representative, the person, and the county.  
195.20  Legal representatives providing support under consumer-directed 
195.21  community support services pursuant to section 256B.092, 
195.22  subdivision 4, the home and community-based waiver for persons 
195.23  with mental retardation or related conditions or the consumer 
195.24  support grant program pursuant to section 256B.092, subdivision 
195.25  7 256.476, shall not be considered to have a direct or indirect 
195.26  service provider interest under section 256B.092, subdivision 7, 
195.27  if a health and safety plan which meets the criteria established 
195.28  has been agreed upon and implemented.  By October 1, 1999 August 
195.29  1, 2001, the commissioner shall submit, for federal approval, 
195.30  amendments to allow legal representatives to provide support and 
195.31  receive reimbursement under the consumer-directed community 
195.32  support services section of the home and community-based waiver 
195.33  plan. 
195.34     Sec. 46.  Minnesota Statutes 2000, section 256B.092, 
195.35  subdivision 2a, is amended to read: 
195.36     Subd. 2a.  [MEDICAL ASSISTANCE FOR CASE MANAGEMENT 
196.1   ACTIVITIES UNDER THE STATE PLAN MEDICAID OPTION.] (a) Upon 
196.2   receipt of federal approval, the commissioner shall make 
196.3   payments to approved vendors counties, private individuals, and 
196.4   agencies enrolled as providers of case management services 
196.5   participating in the medical assistance program to reimburse 
196.6   costs for providing case management service activities to 
196.7   medical assistance eligible persons with mental retardation or a 
196.8   related condition, in accordance with the state Medicaid plan, 
196.9   the home and community-based waiver for persons with mental 
196.10  retardation and related conditions plan, and federal 
196.11  requirements and limitations.  
196.12     (b) The commissioner shall ensure that each eligible person 
196.13  is given a choice of county and private agency case management 
196.14  service providers.  Case management service providers are 
196.15  prohibited from providing any other service to the person 
196.16  receiving case management services. 
196.17     Sec. 47.  Minnesota Statutes 2000, section 256B.092, 
196.18  subdivision 5, is amended to read: 
196.19     Subd. 5.  [FEDERAL WAIVERS.] (a) The commissioner shall 
196.20  apply for any federal waivers necessary to secure, to the extent 
196.21  allowed by law, federal financial participation under United 
196.22  States Code, title 42, sections 1396 et seq., as amended, for 
196.23  the provision of services to persons who, in the absence of the 
196.24  services, would need the level of care provided in a regional 
196.25  treatment center or a community intermediate care facility for 
196.26  persons with mental retardation or related conditions.  The 
196.27  commissioner may seek amendments to the waivers or apply for 
196.28  additional waivers under United States Code, title 42, sections 
196.29  1396 et seq., as amended, to contain costs.  The commissioner 
196.30  shall ensure that payment for the cost of providing home and 
196.31  community-based alternative services under the federal waiver 
196.32  plan shall not exceed the cost of intermediate care services 
196.33  including day training and habilitation services that would have 
196.34  been provided without the waivered services.  
196.35     (b) The commissioner, in administering home and 
196.36  community-based waivers for persons with mental retardation and 
197.1   related conditions, shall ensure that day services for eligible 
197.2   persons are not provided by the person's residential service 
197.3   provider, unless the person or the person's legal representative 
197.4   is offered a choice of providers and agrees in writing to 
197.5   provision of day services by the residential service provider.  
197.6   The individual service plan for individuals who choose to have 
197.7   their residential service provider provide their day services 
197.8   must describe how health, safety, and protection needs will be 
197.9   met by frequent and regular contact with persons other than the 
197.10  residential service provider. 
197.11     Sec. 48.  Minnesota Statutes 2000, section 256B.093, 
197.12  subdivision 3, is amended to read: 
197.13     Subd. 3.  [TRAUMATIC BRAIN INJURY PROGRAM DUTIES.] The 
197.14  department shall fund administrative case management under this 
197.15  subdivision using medical assistance administrative funds.  The 
197.16  traumatic brain injury program duties include: 
197.17     (1) recommending to the commissioner in consultation with 
197.18  the medical review agent according to Minnesota Rules, parts 
197.19  9505.0500 to 9505.0540, the approval or denial of medical 
197.20  assistance funds to pay for out-of-state placements for 
197.21  traumatic brain injury services and in-state traumatic brain 
197.22  injury services provided by designated Medicare long-term care 
197.23  hospitals; 
197.24     (2) coordinating the traumatic brain injury home and 
197.25  community-based waiver; 
197.26     (3) approving traumatic brain injury waiver eligibility or 
197.27  care plans or both; 
197.28     (4) providing ongoing technical assistance and consultation 
197.29  to county and facility case managers to facilitate care plan 
197.30  development for appropriate, accessible, and cost-effective 
197.31  medical assistance services; 
197.32     (5) (4) providing technical assistance to promote statewide 
197.33  development of appropriate, accessible, and cost-effective 
197.34  medical assistance services and related policy; 
197.35     (6) (5) providing training and outreach to facilitate 
197.36  access to appropriate home and community-based services to 
198.1   prevent institutionalization; 
198.2      (7) (6) facilitating appropriate admissions, continued stay 
198.3   review, discharges, and utilization review for neurobehavioral 
198.4   hospitals and other specialized institutions; 
198.5      (8) (7) providing technical assistance on the use of prior 
198.6   authorization of home care services and coordination of these 
198.7   services with other medical assistance services; 
198.8      (9) (8) developing a system for identification of nursing 
198.9   facility and hospital residents with traumatic brain injury to 
198.10  assist in long-term planning for medical assistance services.  
198.11  Factors will include, but are not limited to, number of 
198.12  individuals served, length of stay, services received, and 
198.13  barriers to community placement; and 
198.14     (10) (9) providing information, referral, and case 
198.15  consultation to access medical assistance services for 
198.16  recipients without a county or facility case manager.  Direct 
198.17  access to this assistance may be limited due to the structure of 
198.18  the program. 
198.19     Sec. 49.  Minnesota Statutes 2000, section 256B.095, is 
198.20  amended to read: 
198.21     256B.095 [THREE-YEAR QUALITY ASSURANCE PILOT PROJECT 
198.22  ESTABLISHED.] 
198.23     Effective July 1, 1998, an alternative quality assurance 
198.24  licensing system pilot project for programs for persons with 
198.25  developmental disabilities is established in Dodge, Fillmore, 
198.26  Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, Steele, 
198.27  Wabasha, and Winona counties for the purpose of improving the 
198.28  quality of services provided to persons with developmental 
198.29  disabilities.  A county, at its option, may choose to have all 
198.30  programs for persons with developmental disabilities located 
198.31  within the county licensed under chapter 245A using standards 
198.32  determined under the alternative quality assurance licensing 
198.33  system pilot project or may continue regulation of these 
198.34  programs under the licensing system operated by the 
198.35  commissioner.  The pilot project expires on June 30, 2001 2005. 
198.36     Sec. 50.  Minnesota Statutes 2000, section 256B.0951, 
199.1   subdivision 1, is amended to read: 
199.2      Subdivision 1.  [MEMBERSHIP.] The region 10 quality 
199.3   assurance commission is established.  The commission consists of 
199.4   at least 14 but not more than 21 members as follows:  at least 
199.5   three but not more than five members representing advocacy 
199.6   organizations; at least three but not more than five members 
199.7   representing consumers, families, and their legal 
199.8   representatives; at least three but not more than five members 
199.9   representing service providers; at least three but not more than 
199.10  five members representing counties; and the commissioner of 
199.11  human services or the commissioner's designee.  Initial 
199.12  membership of the commission shall be recruited and approved by 
199.13  the region 10 stakeholders group.  Prior to approving the 
199.14  commission's membership, the stakeholders group shall provide to 
199.15  the commissioner a list of the membership in the stakeholders 
199.16  group, as of February 1, 1997, a brief summary of meetings held 
199.17  by the group since July 1, 1996, and copies of any materials 
199.18  prepared by the group for public distribution.  The first 
199.19  commission shall establish membership guidelines for the 
199.20  transition and recruitment of membership for the commission's 
199.21  ongoing existence.  Members of the commission who do not receive 
199.22  a salary or wages from an employer for time spent on commission 
199.23  duties may receive a per diem payment when performing commission 
199.24  duties and functions.  All members may be reimbursed for 
199.25  expenses related to commission activities.  Notwithstanding the 
199.26  provisions of section 15.059, subdivision 5, the commission 
199.27  expires on June 30, 2001 2005. 
199.28     Sec. 51.  Minnesota Statutes 2000, section 256B.0951, 
199.29  subdivision 3, is amended to read: 
199.30     Subd. 3.  [COMMISSION DUTIES.] (a) By October 1, 1997, the 
199.31  commission, in cooperation with the commissioners of human 
199.32  services and health, shall do the following:  (1) approve an 
199.33  alternative quality assurance licensing system based on the 
199.34  evaluation of outcomes; (2) approve measurable outcomes in the 
199.35  areas of health and safety, consumer evaluation, education and 
199.36  training, providers, and systems that shall be evaluated during 
200.1   the alternative licensing process; and (3) establish variable 
200.2   licensure periods not to exceed three years based on outcomes 
200.3   achieved.  For purposes of this subdivision, "outcome" means the 
200.4   behavior, action, or status of a person that can be observed or 
200.5   measured and can be reliably and validly determined. 
200.6      (b) By January 15, 1998, the commission shall approve, in 
200.7   cooperation with the commissioner of human services, a training 
200.8   program for members of the quality assurance teams established 
200.9   under section 256B.0952, subdivision 4. 
200.10     (c) The commission and the commissioner shall establish an 
200.11  ongoing review process for the alternative quality assurance 
200.12  licensing system.  The review shall take into account the 
200.13  comprehensive nature of the alternative system, which is 
200.14  designed to evaluate the broad spectrum of licensed and 
200.15  unlicensed entities that provide services to clients, as 
200.16  compared to the current licensing system.  
200.17     (d) The commission shall contract with an independent 
200.18  entity to conduct a financial review of the alternative quality 
200.19  assurance pilot project.  The review shall take into account the 
200.20  comprehensive nature of the alternative system, which is 
200.21  designed to evaluate the broad spectrum of licensed and 
200.22  unlicensed entities that provide services to clients, as 
200.23  compared to the current licensing system.  The review shall 
200.24  include an evaluation of possible budgetary savings within the 
200.25  department of human services as a result of implementation of 
200.26  the alternative quality assurance pilot project.  If a federal 
200.27  waiver is approved under subdivision 7, the financial review 
200.28  shall also evaluate possible savings within the department of 
200.29  health.  This review must be completed by December 15, 2000. 
200.30     (e) The commission shall submit a report to the legislature 
200.31  by January 15, 2001, on the results of the review process for 
200.32  the alternative quality assurance pilot project, a summary of 
200.33  the results of the independent financial review, and a 
200.34  recommendation on whether the pilot project should be extended 
200.35  beyond June 30, 2001. 
200.36     (f) The commissioner, in consultation with the commission, 
201.1   shall examine the feasibility of expanding the project to other 
201.2   populations or geographic areas and identify barriers to 
201.3   expansion.  The commissioner shall report findings and 
201.4   recommendations to the legislature by December 15, 2004. 
201.5      Sec. 52.  Minnesota Statutes 2000, section 256B.0951, 
201.6   subdivision 4, is amended to read: 
201.7      Subd. 4.  [COMMISSION'S AUTHORITY TO RECOMMEND VARIANCES OF 
201.8   LICENSING STANDARDS.] The commission may recommend to the 
201.9   commissioners of human services and health variances from the 
201.10  standards governing licensure of programs for persons with 
201.11  developmental disabilities in order to improve the quality of 
201.12  services by implementing an alternative developmental 
201.13  disabilities licensing system if the commission determines that 
201.14  the alternative licensing system does not adversely affect the 
201.15  health or safety of persons being served by the licensed program 
201.16  nor compromise the qualifications of staff to provide services. 
201.17     Sec. 53.  Minnesota Statutes 2000, section 256B.0951, 
201.18  subdivision 5, is amended to read: 
201.19     Subd. 5.  [VARIANCE OF CERTAIN STANDARDS PROHIBITED.] The 
201.20  safety standards, rights, or procedural protections under 
201.21  sections 245.825; 245.91 to 245.97; 245A.04, subdivisions 3, 3a, 
201.22  3b, and 3c; 245A.09, subdivision 2, paragraph (c), clauses (2) 
201.23  and (5); 245A.12; 245A.13; 252.41, subdivision 9; 256B.092, 
201.24  subdivisions 1b, clause (7), and 10; 626.556; 626.557, and 
201.25  procedures for the monitoring of psychotropic medications shall 
201.26  not be varied under the alternative licensing system pilot 
201.27  project.  The commission may make recommendations to the 
201.28  commissioners of human services and health or to the legislature 
201.29  regarding alternatives to or modifications of the rules and 
201.30  procedures referenced in this subdivision. 
201.31     Sec. 54.  Minnesota Statutes 2000, section 256B.0951, 
201.32  subdivision 7, is amended to read: 
201.33     Subd. 7.  [WAIVER OF RULES.] The commissioner of health may 
201.34  exempt residents of intermediate care facilities for persons 
201.35  with mental retardation (ICFs/MR) who participate in the 
201.36  three-year quality assurance pilot project established in 
202.1   section 256B.095 from the requirements of Minnesota Rules, 
202.2   chapter 4665, upon approval by the federal government of a 
202.3   waiver of federal certification requirements for ICFs/MR.  The 
202.4   commissioners of health and human services shall apply for any 
202.5   necessary waivers as soon as practicable and shall submit the 
202.6   concept paper to the federal government by June 1, 1998.  
202.7      Sec. 55.  Minnesota Statutes 2000, section 256B.0951, is 
202.8   amended by adding a subdivision to read: 
202.9      Subd. 8.  [FEDERAL WAIVER.] The commissioner of human 
202.10  services shall seek federal authority to waive provisions of 
202.11  intermediate care facilities for persons with mental retardation 
202.12  (ICFs/MR) regulations to enable the demonstration and evaluation 
202.13  of the alternative quality assurance system for ICFs/MR under 
202.14  the project.  The commissioner of human services shall apply for 
202.15  any necessary waivers as soon as practicable. 
202.16     Sec. 56.  Minnesota Statutes 2000, section 256B.0951, is 
202.17  amended by adding a subdivision to read: 
202.18     Subd. 9.  [EVALUATION.] The commission, in consultation 
202.19  with the commissioner of human services, shall conduct an 
202.20  evaluation of the alternative quality assurance system, and 
202.21  present a report to the commissioner by June 30, 2004. 
202.22     Sec. 57.  Minnesota Statutes 2000, section 256B.0952, 
202.23  subdivision 1, is amended to read: 
202.24     Subdivision 1.  [NOTIFICATION.] By January 15, 1998, each 
202.25  affected county shall notify the commission and the 
202.26  commissioners of human services and health as to whether it 
202.27  chooses to implement on July 1, 1998, the alternative licensing 
202.28  system for the pilot project.  A county that does not implement 
202.29  the alternative licensing system on July 1, 1998, may give 
202.30  notice to the commission and the commissioners by January 15, 
202.31  1999, or January 15, 2000, that it will implement the 
202.32  alternative licensing system on the following July 1.  A county 
202.33  that implements the alternative licensing system commits to 
202.34  participate until June 30, 2001.  For each year of the project, 
202.35  region 10 counties shall give notice to the commission and 
202.36  commissioners of human services and health by March 15 of intent 
203.1   to join the quality assurance alternative licensing system, 
203.2   effective July 1 of that year.  A county choosing to participate 
203.3   in the alternative licensing system commits to participate until 
203.4   June 30, 2005.  Counties participating in the quality assurance 
203.5   alternative licensing system as of January 1, 2001, shall notify 
203.6   the commission and the commissioners of human services and 
203.7   health by March 15, 2001, of intent to continue participation.  
203.8   Counties that elect to continue participation must participate 
203.9   in the alternative licensing system until June 30, 2005. 
203.10     Sec. 58.  Minnesota Statutes 2000, section 256B.0952, 
203.11  subdivision 4, is amended to read: 
203.12     Subd. 4.  [APPOINTMENT OF QUALITY ASSURANCE MANAGER.] (a) A 
203.13  county or group of counties that chooses to participate in the 
203.14  alternative licensing system shall designate a quality assurance 
203.15  manager and shall establish quality assurance teams in 
203.16  accordance with subdivision 5.  The manager shall recruit, 
203.17  train, and assign duties to the quality assurance team members.  
203.18  In assigning team members to conduct the quality assurance 
203.19  process at a facility, program, or service, the manager shall 
203.20  take into account the size of the service provider, the number 
203.21  of services to be reviewed, the skills necessary for team 
203.22  members to complete the process, and other relevant factors.  
203.23  The manager shall ensure that no team member has a financial, 
203.24  personal, or family relationship with the facility, program, or 
203.25  service being reviewed or with any clients of the facility, 
203.26  program, or service. 
203.27     (b) Quality assurance teams shall report the findings of 
203.28  their quality assurance reviews to the quality assurance manager.
203.29  The quality assurance manager shall provide the report from the 
203.30  quality assurance team to the county and, upon request, to the 
203.31  commissioners of human services and health, and shall provide a 
203.32  summary of the report to the quality assurance review council.  
203.33     Sec. 59.  Minnesota Statutes 2000, section 256B.49, is 
203.34  amended by adding a subdivision to read: 
203.35     Subd. 11.  [AUTHORITY.] (a) The commissioner is authorized 
203.36  to apply for home and community-based service waivers, as 
204.1   authorized under section 1915(c) of the Social Security Act to 
204.2   serve persons under the age of 65 who are determined to require 
204.3   the level of care provided in a nursing home and persons who 
204.4   require the level of care provided in a hospital.  The 
204.5   commissioner shall apply for the home and community-based 
204.6   waivers in order to:  (i) promote the support of persons with 
204.7   disabilities in the most integrated settings; (ii) expand the 
204.8   availability of services for persons who are eligible for 
204.9   medical assistance; (iii) promote cost-effective options to 
204.10  institutional care; and (iv) obtain federal financial 
204.11  participation.  
204.12     (b) The provision of waivered services to medical 
204.13  assistance recipients with disabilities shall comply with the 
204.14  requirements outlined in the federally approved applications for 
204.15  home and community-based services and subsequent amendments, 
204.16  including provision of services according to a service plan 
204.17  designed to meet the needs of the individual.  For purposes of 
204.18  this section, the approved home and community-based application 
204.19  is considered the necessary federal requirement. 
204.20     (c) The commissioner shall provide interested persons 
204.21  serving on agency advisory committees and task forces, and 
204.22  others upon request, with notice of, and an opportunity to 
204.23  comment on, any changes or amendments to the federally approved 
204.24  applications for home and community-based waivers, prior to 
204.25  their submission to the federal health care financing 
204.26  administration. 
204.27     (d) The commissioner shall seek approval, as authorized 
204.28  under section 1915(c) of the Social Security Act, to allow 
204.29  medical assistance eligibility under this section for children 
204.30  under age 21 without deeming of parental income or assets. 
204.31     (e) The commissioner shall seek approval, as authorized 
204.32  under section 1915(c) of the Social Act, to allow medical 
204.33  assistance eligibility under this section for individuals under 
204.34  age 65 without deeming the spouse's income or assets. 
204.35     Sec. 60.  Minnesota Statutes 2000, section 256B.49, is 
204.36  amended by adding a subdivision to read: 
205.1      Subd. 12.  [INFORMED CHOICE.] Persons who are determined 
205.2   likely to require the level of care provided in a nursing 
205.3   facility or hospital shall be informed of the home and 
205.4   community-based support alternatives to the provision of 
205.5   inpatient hospital services or nursing facility services.  Each 
205.6   person must be given the choice of either institutional or home 
205.7   and community-based services, using the provisions described in 
205.8   section 256B.77, subdivision 2, paragraph (p). 
205.9      Sec. 61.  Minnesota Statutes 2000, section 256B.49, is 
205.10  amended by adding a subdivision to read: 
205.11     Subd. 13.  [CASE MANAGEMENT.] (a) Each recipient of a home 
205.12  and community-based waiver shall be provided case management 
205.13  services by qualified vendors as described in the federally 
205.14  approved waiver application.  The case management service 
205.15  activities provided will include: 
205.16     (1) assessing the needs of the individual within 20 working 
205.17  days of a recipient's request; 
205.18     (2) developing the written individual service plan within 
205.19  ten working days after the assessment is completed; 
205.20     (3) informing the recipient or the recipient's legal 
205.21  guardian or conservator of service options; 
205.22     (4) assisting the recipient in the identification of 
205.23  potential service providers; 
205.24     (5) assisting the recipient to access services; 
205.25     (6) coordinating, evaluating, and monitoring of the 
205.26  services identified in the service plan; 
205.27     (7) completing the annual reviews of the service plan; and 
205.28     (8) informing the recipient or legal representative of the 
205.29  right to have assessments completed and service plans developed 
205.30  within specified time periods, and to appeal county action or 
205.31  inaction under section 256.045, subdivision 3. 
205.32     (b) The case manager may delegate certain aspects of the 
205.33  case management service activities to another individual 
205.34  provided there is oversight by the case manager.  The case 
205.35  manager may not delegate those aspects which require 
205.36  professional judgment including assessments, reassessments, and 
206.1   care plan development. 
206.2      Sec. 62.  Minnesota Statutes 2000, section 256B.49, is 
206.3   amended by adding a subdivision to read: 
206.4      Subd. 14.  [ASSESSMENT AND REASSESSMENT.] (a) Assessments 
206.5   of each recipient's strengths, informal support systems, and 
206.6   need for services shall be completed within 20 working days of 
206.7   the recipient's request.  Reassessment of each recipient's 
206.8   strengths, support systems, and need for services shall be 
206.9   conducted at least every 12 months and at other times when there 
206.10  has been a significant change in the recipient's functioning. 
206.11     (b) Persons with mental retardation or a related condition 
206.12  who apply for services under the nursing facility level waiver 
206.13  programs shall be screened for the appropriate level of care 
206.14  according to section 256B.092. 
206.15     (c) Recipients who are found eligible for home and 
206.16  community-based services under this section before their 65th 
206.17  birthday may remain eligible for these services after their 65th 
206.18  birthday if they continue to meet all other eligibility factors. 
206.19     Sec. 63.  Minnesota Statutes 2000, section 256B.49, is 
206.20  amended by adding a subdivision to read: 
206.21     Subd. 15.  [INDIVIDUALIZED SERVICE PLAN.] Each recipient of 
206.22  home and community-based waivered services shall be provided a 
206.23  copy of the written service plan which: 
206.24     (1) is developed and signed by the recipient within ten 
206.25  working days of the completion of the assessment; 
206.26     (2) meets the assessed needs of the recipient; 
206.27     (3) reasonably ensures the health and safety of the 
206.28  recipient; 
206.29     (4) promotes independence; 
206.30     (5) allows for services to be provided in the most 
206.31  integrated settings; and 
206.32     (6) provides for an informed choice, as defined in section 
206.33  256B.77, subdivision 2, paragraph (p), of service and support 
206.34  providers. 
206.35     Sec. 64.  Minnesota Statutes 2000, section 256B.49, is 
206.36  amended by adding a subdivision to read: 
207.1      Subd. 16.  [SERVICES AND SUPPORTS.] (a) Services and 
207.2   supports included in the home and community-based waivers for 
207.3   persons with disabilities shall meet the requirements set out in 
207.4   United States Code, title 42, section 1396n.  The services and 
207.5   supports, which are offered as alternatives to institutional 
207.6   care, shall promote consumer choice, community inclusion, 
207.7   self-sufficiency, and self-determination. 
207.8      (b) Beginning January 1, 2003, the commissioner shall 
207.9   simplify and improve access to home and community-based waivered 
207.10  services, to the extent possible, through the establishment of a 
207.11  common service menu that is available to eligible recipients 
207.12  regardless of age, disability type, or waiver program. 
207.13     (c) Consumer directed community support services shall be 
207.14  offered as an option to all persons eligible for services under 
207.15  section 256B.49, subdivision 11, by January 1, 2002. 
207.16     (d) Services and supports shall be arranged and provided 
207.17  consistent with individualized written plans of care for 
207.18  eligible waiver recipients. 
207.19     (e) The state of Minnesota and county agencies that 
207.20  administer home and community-based waivered services for 
207.21  persons with disabilities, shall not be liable for damages, 
207.22  injuries, or liabilities sustained through the purchase of 
207.23  supports by the individual, the individual's family, or the 
207.24  authorized representative with funds received through the 
207.25  consumer-directed community support service under this section.  
207.26  Liabilities include but are not limited to:  workers' 
207.27  compensation liability, the Federal Insurance Contributions Act 
207.28  (FICA), or the Federal Unemployment Tax Act (FUTA). 
207.29     Sec. 65.  Minnesota Statutes 2000, section 256B.49, is 
207.30  amended by adding a subdivision to read: 
207.31     Subd. 17.  [COST OF SERVICES AND SUPPORTS.] (a) The 
207.32  commissioner shall ensure that the average per capita 
207.33  expenditures estimated in any fiscal year for home and 
207.34  community-based waiver recipients does not exceed the average 
207.35  per capita expenditures that would have been made to provide 
207.36  institutional services for recipients in the absence of the 
208.1   waiver. 
208.2      (b) The commissioner shall implement on January 1, 2002, 
208.3   one or more aggregate, need-based methods for allocating to 
208.4   local agencies the home and community-based waivered service 
208.5   resources available to support recipients with disabilities in 
208.6   need of the level of care provided in a nursing facility or a 
208.7   hospital.  The commissioner shall allocate resources to single 
208.8   counties and county partnerships in a manner that reflects 
208.9   consideration of: 
208.10     (1) an incentive-based payment process for achieving 
208.11  outcomes; 
208.12     (2) the need for a state-level risk pool; 
208.13     (3) the need for retention of management responsibility at 
208.14  the state agency level; and 
208.15     (4) a phase-in strategy as appropriate. 
208.16     (c) Until the allocation methods described in paragraph (b) 
208.17  are implemented, the annual allowable reimbursement level of 
208.18  home and community-based waiver services shall be the greater of:
208.19     (1) the statewide average payment amount which the 
208.20  recipient is assigned under the waiver reimbursement system in 
208.21  place on June 30, 2001, modified by the percentage of any 
208.22  provider rate increase appropriated for home and community-based 
208.23  services; or 
208.24     (2) an amount approved by the commissioner based on the 
208.25  recipient's extraordinary needs that cannot be met within the 
208.26  current allowable reimbursement level.  The increased 
208.27  reimbursement level must be necessary to allow the recipient to 
208.28  be discharged from an institution or to prevent imminent 
208.29  placement in an institution.  The additional reimbursement may 
208.30  be used to secure environmental modifications; assistive 
208.31  technology and equipment; and increased costs for supervision, 
208.32  training, and support services necessary to address the 
208.33  recipient's extraordinary needs.  The commissioner may approve 
208.34  an increased reimbursement level for up to one year of the 
208.35  recipient's relocation from an institution or up to six months 
208.36  of a determination that a current waiver recipient is at 
209.1   imminent risk of being placed in an institution. 
209.2      (d) Beginning July 1, 2001, medically necessary private 
209.3   duty nursing services will be authorized under this section as 
209.4   complex and regular care according to section 256B.0627. 
209.5      Sec. 66.  Minnesota Statutes 2000, section 256B.49, is 
209.6   amended by adding a subdivision to read: 
209.7      Subd. 18.  [PAYMENTS.] The commissioner shall reimburse 
209.8   approved vendors from the medical assistance account for the 
209.9   costs of providing home and community-based services to eligible 
209.10  recipients using the invoice processing procedures of the 
209.11  Medicaid management information system (MMIS).  Recipients will 
209.12  be screened and authorized for services according to the 
209.13  federally approved waiver application and its subsequent 
209.14  amendments. 
209.15     Sec. 67.  Minnesota Statutes 2000, section 256B.49, is 
209.16  amended by adding a subdivision to read: 
209.17     Subd. 19.  [HEALTH AND WELFARE.] The commissioner of human 
209.18  services shall take the necessary safeguards to protect the 
209.19  health and welfare of individuals provided services under the 
209.20  waiver. 
209.21     Sec. 68.  Minnesota Statutes 2000, section 256B.49, is 
209.22  amended by adding a subdivision to read: 
209.23     Subd. 20.  [TRAUMATIC BRAIN INJURY AND RELATED CONDITIONS.] 
209.24  The commissioner shall seek to amend the traumatic brain injury 
209.25  waiver to include, as eligible persons, individuals with an 
209.26  acquired or degenerative disease diagnosis where cognitive 
209.27  impairment is present, such as multiple sclerosis. 
209.28     Sec. 69.  Minnesota Statutes 2000, section 256B.69, 
209.29  subdivision 23, is amended to read: 
209.30     Subd. 23.  [ALTERNATIVE INTEGRATED LONG-TERM CARE SERVICES; 
209.31  ELDERLY AND DISABLED PERSONS.] (a) The commissioner may 
209.32  implement demonstration projects to create alternative 
209.33  integrated delivery systems for acute and long-term care 
209.34  services to elderly persons and persons with disabilities as 
209.35  defined in section 256B.77, subdivision 7a, that provide 
209.36  increased coordination, improve access to quality services, and 
210.1   mitigate future cost increases.  The commissioner may seek 
210.2   federal authority to combine Medicare and Medicaid capitation 
210.3   payments for the purpose of such demonstrations.  Medicare funds 
210.4   and services shall be administered according to the terms and 
210.5   conditions of the federal waiver and demonstration provisions.  
210.6   For the purpose of administering medical assistance funds, 
210.7   demonstrations under this subdivision are subject to 
210.8   subdivisions 1 to 22.  The provisions of Minnesota Rules, parts 
210.9   9500.1450 to 9500.1464, apply to these demonstrations, with the 
210.10  exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, 
210.11  subpart 1, items B and C, which do not apply to persons 
210.12  enrolling in demonstrations under this section.  An initial open 
210.13  enrollment period may be provided.  Persons who disenroll from 
210.14  demonstrations under this subdivision remain subject to 
210.15  Minnesota Rules, parts 9500.1450 to 9500.1464.  When a person is 
210.16  enrolled in a health plan under these demonstrations and the 
210.17  health plan's participation is subsequently terminated for any 
210.18  reason, the person shall be provided an opportunity to select a 
210.19  new health plan and shall have the right to change health plans 
210.20  within the first 60 days of enrollment in the second health 
210.21  plan.  Persons required to participate in health plans under 
210.22  this section who fail to make a choice of health plan shall not 
210.23  be randomly assigned to health plans under these demonstrations. 
210.24  Notwithstanding section 256L.12, subdivision 5, and Minnesota 
210.25  Rules, part 9505.5220, subpart 1, item A, if adopted, for the 
210.26  purpose of demonstrations under this subdivision, the 
210.27  commissioner may contract with managed care organizations, 
210.28  including counties, to serve only elderly persons eligible for 
210.29  medical assistance, elderly and disabled persons, or disabled 
210.30  persons only.  For persons with primary diagnoses of mental 
210.31  retardation or a related condition, serious and persistent 
210.32  mental illness, or serious emotional disturbance, the 
210.33  commissioner must ensure that the county authority has approved 
210.34  the demonstration and contracting design.  Enrollment in these 
210.35  projects for persons with disabilities shall be voluntary until 
210.36  July 1, 2001.  The commissioner shall not implement any 
211.1   demonstration project under this subdivision for persons with 
211.2   primary diagnoses of mental retardation or a related condition, 
211.3   serious and persistent mental illness, or serious emotional 
211.4   disturbance, without approval of the county board of the county 
211.5   in which the demonstration is being implemented. 
211.6      Before implementation of a demonstration project for 
211.7   disabled persons, the commissioner must provide information to 
211.8   appropriate committees of the house of representatives and 
211.9   senate and must involve representatives of affected disability 
211.10  groups in the design of the demonstration projects. 
211.11     (b) A nursing facility reimbursed under the alternative 
211.12  reimbursement methodology in section 256B.434 may, in 
211.13  collaboration with a hospital, clinic, or other health care 
211.14  entity provide services under paragraph (a).  The commissioner 
211.15  shall amend the state plan and seek any federal waivers 
211.16  necessary to implement this paragraph. 
211.17     Sec. 70.  Minnesota Statutes 2000, section 256D.35, is 
211.18  amended by adding a subdivision to read: 
211.19     Subd. 11a.  [INSTITUTION.] "Institution" means:  a 
211.20  hospital, consistent with Code of Federal Regulations, title 42, 
211.21  section 440.10; regional treatment center inpatient services; a 
211.22  nursing facility; and an intermediate care facility for persons 
211.23  with mental retardation. 
211.24     Sec. 71.  Minnesota Statutes 2000, section 256D.35, is 
211.25  amended by adding a subdivision to read: 
211.26     Subd. 18a.  [SHELTER COSTS.] "Shelter costs" means:  rent, 
211.27  manufactured home lot rentals; monthly principal, interest, 
211.28  insurance premiums, and property taxes due for mortgages or 
211.29  contract for deed costs; costs for utilities, including heating, 
211.30  cooling, electricity, water, and sewerage; garbage collection 
211.31  fees; and the basic service fee for one telephone. 
211.32     Sec. 72.  Minnesota Statutes 2000, section 256D.44, 
211.33  subdivision 5, is amended to read: 
211.34     Subd. 5.  [SPECIAL NEEDS.] In addition to the state 
211.35  standards of assistance established in subdivisions 1 to 4, 
211.36  payments are allowed for the following special needs of 
212.1   recipients of Minnesota supplemental aid who are not residents 
212.2   of a nursing home, a regional treatment center, or a group 
212.3   residential housing facility. 
212.4      (a) The county agency shall pay a monthly allowance for 
212.5   medically prescribed diets payable under the Minnesota family 
212.6   investment program if the cost of those additional dietary needs 
212.7   cannot be met through some other maintenance benefit.  
212.8      (b) Payment for nonrecurring special needs must be allowed 
212.9   for necessary home repairs or necessary repairs or replacement 
212.10  of household furniture and appliances using the payment standard 
212.11  of the AFDC program in effect on July 16, 1996, for these 
212.12  expenses, as long as other funding sources are not available.  
212.13     (c) A fee for guardian or conservator service is allowed at 
212.14  a reasonable rate negotiated by the county or approved by the 
212.15  court.  This rate shall not exceed five percent of the 
212.16  assistance unit's gross monthly income up to a maximum of $100 
212.17  per month.  If the guardian or conservator is a member of the 
212.18  county agency staff, no fee is allowed. 
212.19     (d) The county agency shall continue to pay a monthly 
212.20  allowance of $68 for restaurant meals for a person who was 
212.21  receiving a restaurant meal allowance on June 1, 1990, and who 
212.22  eats two or more meals in a restaurant daily.  The allowance 
212.23  must continue until the person has not received Minnesota 
212.24  supplemental aid for one full calendar month or until the 
212.25  person's living arrangement changes and the person no longer 
212.26  meets the criteria for the restaurant meal allowance, whichever 
212.27  occurs first. 
212.28     (e) A fee of ten percent of the recipient's gross income or 
212.29  $25, whichever is less, is allowed for representative payee 
212.30  services provided by an agency that meets the requirements under 
212.31  SSI regulations to charge a fee for representative payee 
212.32  services.  This special need is available to all recipients of 
212.33  Minnesota supplemental aid regardless of their living 
212.34  arrangement.  
212.35     (f) Notwithstanding the language in this subdivision, an 
212.36  amount equal to the maximum allotment authorized by the federal 
213.1   Food Stamp Program for a single individual which is in effect on 
213.2   the first day of January of the previous year will be added to 
213.3   the standards of assistance established in subdivisions 1 to 4 
213.4   for individuals under the age of 65 who are relocating from an 
213.5   institution and who are shelter needy.  An eligible individual 
213.6   who receives this benefit prior to age 65 may continue to 
213.7   receive the benefit after the age of 65. 
213.8      "Shelter needy" means that the assistance unit incurs 
213.9   monthly shelter costs that exceed 40 percent of the assistance 
213.10  unit's gross income before the application of this special needs 
213.11  standard.  "Gross income" for the purposes of this section is 
213.12  the applicant's or recipient's income as defined in section 
213.13  256D.35, subdivision 10, or the standard specified in 
213.14  subdivision 3, whichever is greater.  A recipient of a federal 
213.15  or state housing subsidy, that limits shelter costs to a 
213.16  percentage of gross income, shall not be considered shelter 
213.17  needy for purposes of this paragraph. 
213.18     Sec. 73.  Minnesota Statutes 2000, section 256I.05, 
213.19  subdivision 1e, is amended to read: 
213.20     Subd. 1e.  [SUPPLEMENTARY RATE FOR CERTAIN FACILITIES.] 
213.21  Notwithstanding the provisions of subdivisions 1a and 1c, 
213.22  beginning July 1, 1999 2001, a county agency shall negotiate a 
213.23  supplementary rate in addition to the rate specified in 
213.24  subdivision 1, equal to 25 125 percent of the amount specified 
213.25  in subdivision 1a, including any legislatively authorized 
213.26  inflationary adjustments, for a group residential housing 
213.27  provider that: 
213.28     (1) is located in Hennepin county and has had a group 
213.29  residential housing contract with the county since June 1996; 
213.30     (2) operates in three separate locations a 56-bed 71-bed 
213.31  facility, a and two 40-bed facility, and a 30-bed facility 
213.32  facilities; and 
213.33     (3) serves a chemically dependent clientele, providing 24 
213.34  hours per day supervision and limiting a resident's maximum 
213.35  length of stay to 13 months out of a consecutive 24-month period.
213.36     Sec. 74.  [256I.07] [RESPITE CARE PILOT PROJECT FOR FAMILY 
214.1   ADULT FOSTER CARE PROVIDERS.] 
214.2      Subdivision 1.  [PROGRAM ESTABLISHED.] The state recognizes 
214.3   the importance of developing and maintaining quality family 
214.4   foster care resources.  In order to accomplish that goal, the 
214.5   commissioner shall establish a two-year respite care pilot 
214.6   project for family adult foster care providers in three 
214.7   counties.  This pilot project is intended to provide support to 
214.8   caregivers of adult foster care residents.  The commissioner 
214.9   shall establish a pilot project to accomplish the provisions in 
214.10  subdivisions 2 to 4. 
214.11     Subd. 2.  [ELIGIBILITY.] A family adult foster care home 
214.12  provider as defined under section 144D.01, subdivision 7, who 
214.13  has been licensed for six months is eligible for 30 days of 
214.14  respite care per calendar year.  In cases of emergency, a county 
214.15  social services agency may waive the six-month licensing 
214.16  requirement.  In order to be eligible to receive respite payment 
214.17  from group residential housing and alternative care, a provider 
214.18  must take time off away from their foster care residents.  
214.19     Subd. 3.  [PAYMENT STRUCTURE.] (a) The payment for respite 
214.20  care for an adult foster care resident eligible for only group 
214.21  residential housing shall be based on the current monthly group 
214.22  residential housing base room and board rate and the current 
214.23  maximum monthly group residential housing difficulty of care 
214.24  rate. 
214.25     (b) The payment for respite care for an adult foster care 
214.26  resident eligible for alternative care funds shall be based on 
214.27  the resident's alternative care foster care rate. 
214.28     (c) The payment for respite care for an adult foster care 
214.29  resident eligible for Medicaid home and community-based services 
214.30  waiver funds shall be based on the group residential housing 
214.31  base room and board rate. 
214.32     (d) The total amount available to pay for respite care for 
214.33  a family adult foster care provider shall be based on the number 
214.34  of residents currently served in the foster care home and the 
214.35  source of funding used to pay for each resident's foster care.  
214.36  Respite care must be paid for on a per diem basis and for a full 
215.1   day. 
215.2      Subd. 4.  [PRIVATE PAY RESIDENTS.] Payment for respite care 
215.3   for private pay foster care residents must be arranged between 
215.4   the provider and the resident or the resident's family. 
215.5      Sec. 75.  Laws 1999, chapter 152, section 1, is amended to 
215.6   read: 
215.7      Section 1.  [TASK FORCE.] 
215.8      A day training and habilitation task force is established.  
215.9   Task force membership shall consist of representatives of the 
215.10  commissioner of human services, counties, service consumers, and 
215.11  vendors of day training and habilitation as defined in Minnesota 
215.12  Statutes, section 252.41, subdivision 9, including at least one 
215.13  representative from each association representing day training 
215.14  and habilitation vendors.  Appointments to the task force shall 
215.15  be made by the commissioner of human services and technical 
215.16  assistance shall be provided by the department of human services.
215.17     Sec. 76.  Laws 1999, chapter 152, section 4, is amended to 
215.18  read: 
215.19     Sec. 4.  [REPORT.] 
215.20     The task force shall present a report recommending a new 
215.21  payment rate structure to the legislature by January 15, 2000, 
215.22  and shall make recommendations to the commissioner of human 
215.23  services regarding the implementation of the pilot project for 
215.24  the individualized payment rate structure, so the pilot project 
215.25  can be implemented by July 1, 2002, as required in section 3.  
215.26  The task force expires on March 15, 2000 December 30, 2003. 
215.27     Sec. 77.  [DAY TRAINING AND HABILITATION PAYMENT STRUCTURE 
215.28  PILOT PROJECT.] 
215.29     Subdivision 1.  [INDIVIDUALIZED PAYMENT RATE 
215.30  STRUCTURE.] Notwithstanding Minnesota Statutes, sections 
215.31  252.451, subdivision 5; and 252.46; and Minnesota Rules, part 
215.32  9525.1290, subpart 1, items A and B, the commissioner of human 
215.33  services shall initiate a pilot project and phase-in for the 
215.34  individualized payment rate structure described in this section 
215.35  and section 74.  The pilot project shall include actual 
215.36  transfers of funds, not simulated transfers.  The pilot project 
216.1   may include all or some of the vendors in up to eight counties, 
216.2   with no more than two counties from the seven-county 
216.3   Minneapolis-St. Paul metropolitan area.  Following initiation of 
216.4   the pilot project, the commissioner shall phase in 
216.5   implementation of the individualized payment rate structure to 
216.6   the remaining counties and vendors according to the 
216.7   implementation plan developed by the task force.  The pilot and 
216.8   phase-in shall not extend over more than 18 months and shall be 
216.9   completed by December 31, 2003.  
216.10     Subd. 2.  [SUNSET.] The pilot project shall sunset upon 
216.11  implementation of a new statewide rate structure according to 
216.12  the implementation plan developed by the task force described in 
216.13  subdivision 3, in its report to the legislature on December 1, 
216.14  2001.  The rates of vendors participating in the pilot project 
216.15  must be modified to be consistent with the new statewide rate 
216.16  structure, as implemented. 
216.17     Subd. 3.  [TASK FORCE RESPONSIBILITIES.] The day training 
216.18  and habilitation task force established under Laws 1999, chapter 
216.19  152, section 4, shall evaluate the pilot project authorized 
216.20  under subdivision 1, and by December 1, 2001, shall report to 
216.21  the legislature with an implementation plan, which shall address 
216.22  how and when the pilot project individualized payment rate 
216.23  structure will be implemented statewide, shall ensure that 
216.24  vendors that wish to maintain their current per diem rate may do 
216.25  so within the new payment system, and shall identify criteria 
216.26  that would halt statewide implementation if vendors or clients 
216.27  were adversely affected by the new payment rate structure, and 
216.28  with recommendations for any amendments that should be made 
216.29  before statewide implementation.  These recommendations shall be 
216.30  made in a report to the chairs of the house health and human 
216.31  services policy and finance committees and the senate health and 
216.32  family security committee and finance division. 
216.33     Subd. 4.  [RATE SETTING.] (a) The rate structure under this 
216.34  section is intended to allow a county to authorize an individual 
216.35  rate for each client in the vendor's program based on the needs 
216.36  and expected outcomes of the individual client.  Rates shall be 
217.1   based on an authorized package of services for each individual 
217.2   over a typical time frame.  Rates may be established across 
217.3   multiple sites run by a single vendor. 
217.4      (b) With county concurrence, a vendor shall establish up to 
217.5   four levels of service, A through D, based on the intensity of 
217.6   services provided to an individual client of day training and 
217.7   habilitation services.  Service level A shall be the highest 
217.8   intensity of services, marked primarily, but not exclusively, by 
217.9   a one-to-one client-to-staff ratio.  Service level D shall be 
217.10  the lowest intensity of services.  The county shall document the 
217.11  vendor's description of the type and amount of services 
217.12  associated with each service level. 
217.13     (c) For each vendor, a county board shall establish a 
217.14  dollar value for one hour of service at each of the service 
217.15  levels defined in paragraph (b).  In establishing these values 
217.16  for existing vendors transitioning from the payment rate 
217.17  structure under Minnesota Statutes, section 252.46, subdivision 
217.18  1, the county board shall follow the formula and guidelines 
217.19  developed by the day training and habilitation task force under 
217.20  paragraph (e). 
217.21     (d) A vendor may elect to maintain a single transportation 
217.22  rate or may elect to establish up to five types of 
217.23  transportation services:  public transportation, public special 
217.24  transportation, nonambulatory transportation, out-of-service 
217.25  area transportation, and ambulatory transportation.  For vendors 
217.26  that elect to establish multiple transportation services, the 
217.27  county board shall establish a dollar value for a round trip on 
217.28  each type of transportation service offered through the vendor.  
217.29  With vendor concurrence, the county may also establish a uniform 
217.30  one-way trip value for some or all of the transportation service 
217.31  types. 
217.32     (e) The county board shall ensure that the vendor 
217.33  translates the vendor's existing program and transportation 
217.34  rates to the rates and values in the pilot project by using the 
217.35  conversion calculations for services and transportation approved 
217.36  by the day training and habilitation task force established 
218.1   under Laws 1999, chapter 152, and included in the task force's 
218.2   recommendations to the legislature.  The conversion calculation 
218.3   may be amended by the task force with the approval of the 
218.4   commissioner and any amendments shall become effective upon 
218.5   notification to the pilot project counties from the 
218.6   commissioner.  The calculation shall take the total 
218.7   reimbursement dollars available to the vendor and divide by the 
218.8   units of service expected at each service level and of each 
218.9   transportation type.  In determining the total reimbursement 
218.10  dollars available to a vendor, the vendor shall multiply the 
218.11  vendor's current per diem rate for both services and 
218.12  transportation, including any new rate increases, by the 
218.13  vendor's actual utilization for the year prior to implementation 
218.14  of the pilot project.  Vendors shall be allowed to allocate 
218.15  available reimbursement dollars between service and 
218.16  transportation before the vendor's service level and 
218.17  transportation values are calculated.  After translating its 
218.18  existing service and transportation rates to the service level 
218.19  and transportation values under the pilot, the vendor shall 
218.20  project its expected reimbursement income using the expected 
218.21  service and transportation packages for its existing clients, 
218.22  based on current service authorizations.  If the projected 
218.23  reimbursement income is less than the vendor would have received 
218.24  under the payment structure of Minnesota Statutes, section 
218.25  252.46, the vendor and the county, with the approval of the 
218.26  commissioner, shall adjust the vendor's service level and 
218.27  transportation values to eliminate the shortfall.  The 
218.28  commissioner shall report all adjustments to the day training 
218.29  and habilitation task force for consideration of possible 
218.30  modifications to the pilot project individualized payment rate 
218.31  structure.  
218.32     Subd. 5.  [INDIVIDUAL RATE AUTHORIZATION.] (a) As part of 
218.33  its annual authorization of services for each client under 
218.34  Minnesota Statutes, section 252.44, paragraph (a), clause (1), 
218.35  and Minnesota Rules, part 9525.0016, subpart 12, the county 
218.36  shall authorize and document a service package and a 
219.1   transportation package as follows: 
219.2      (1) the service package shall include the amount and type 
219.3   of services at each applicable service level to be provided to 
219.4   the client over a package period.  An individual client may 
219.5   receive services at multiple service levels over the course of 
219.6   the package period.  The service package rate shall be the sum 
219.7   of the amount of services at each level over the package period, 
219.8   multiplied by the dollar value for each service level; 
219.9      (2) the transportation package shall include the amount and 
219.10  type of transportation services to be provided to the client 
219.11  over the package period.  The transportation package rate shall 
219.12  be the sum of the amount of transportation services, multiplied 
219.13  by the dollar value associated with the type of transportation 
219.14  service authorized for the client; 
219.15     (3) the package period shall be established by the county, 
219.16  and may be one week, two weeks, or one month; and 
219.17     (4) the individual rate authorization may be reviewed and 
219.18  modified by the county at any time and must be reviewed and 
219.19  reauthorized by the county at least annually. 
219.20     (b) For vendors with rates established under this section, 
219.21  a service day under Minnesota Statutes, sections 245B.06 and 
219.22  252.44, includes any day in which a client receives any 
219.23  reimbursable service from a vendor or attends employment 
219.24  arranged by the vendor. 
219.25     Subd. 6.  [BILLING FOR SERVICES.] The vendor shall bill 
219.26  for, and shall be reimbursed for, the service package rate and 
219.27  transportation package rate for the package period as authorized 
219.28  by the county for each client in the vendor's program.  The 
219.29  length of the package period shall not affect the timing or 
219.30  frequency of vendors' submissions of claims for payment under 
219.31  the Medicaid Management Information System II (MMIS) or its 
219.32  successors. 
219.33     Subd. 7.  [NOTIFICATION OF CHANGE IN CLIENT NEEDS.] The 
219.34  vendor shall notify an individual client's case manager if the 
219.35  vendor has knowledge of a material change in the client's needs 
219.36  that may indicate a need for a change in service authorization.  
220.1   Factors that would require such notice include, but are not 
220.2   limited to, significant changes in medical status, residential 
220.3   placement, attendance patterns, behavioral needs, or skill 
220.4   functioning.  The vendor shall notify the case manager as soon 
220.5   as possible but no later than 30 calendar days after becoming 
220.6   aware of the change in needs.  The service authorization for the 
220.7   client shall not change until the county authorizes a new 
220.8   service and transportation package for the client in accordance 
220.9   with the provisions in Minnesota Statutes, section 256B.092. 
220.10     Sec. 78.  [COUNTY BOARD RESPONSIBILITIES.] 
220.11     For each vendor with rates established under section 73, 
220.12  the county board shall document the vendor's description of the 
220.13  type and amount of services associated with each service level, 
220.14  the vendor's service level values, the vendor's transportation 
220.15  values, and the package period that will be used to determine 
220.16  the rate for each individual client.  The county shall establish 
220.17  a package period of one week, two weeks, or one month. 
220.18     Sec. 79.  [STUDY OF DAY TRAINING AND HABILITATION VENDOR 
220.19  RATES.] 
220.20     The commissioner shall identify the vendors with the lowest 
220.21  rates or underfunded programs in the state and make 
220.22  recommendations to reconcile the discrepancies prior to the 
220.23  implementation of the individualized payment rate structure 
220.24  described in sections 73 and 74. 
220.25     Sec. 80.  [FEDERAL APPROVAL.] 
220.26     The commissioner shall seek any amendments to the state 
220.27  Medicaid plan and any waivers necessary to permit implementation 
220.28  of section 74 within the timelines specified. 
220.29     Sec. 81.  [SEMI-INDEPENDENT LIVING SERVICES (SILS) STUDY.] 
220.30     The commissioner of human services, in consultation with 
220.31  county representatives and other interested persons, shall 
220.32  develop recommendations revising the funding methodology for 
220.33  SILS as defined in Minnesota Statutes, section 252.275, 
220.34  subdivisions 3, 4, 4a, 4b, and 4c, and report by January 15, 
220.35  2002, to the chair of the house of representatives health and 
220.36  human services finance committee and the chairs of the senate 
221.1   health, human services, and corrections budget division. 
221.2      Sec. 82.  [WAIVER REQUEST REGARDING SPOUSAL INCOME.] 
221.3      By September 1, 2001, the commissioner of human services 
221.4   shall seek federal approval to allow recipients of home and 
221.5   community-based waivers authorized under Minnesota Statutes, 
221.6   section 256B.49, to choose either a waiver of deeming of spousal 
221.7   income or the spousal impoverishment protections authorized 
221.8   under United States Code, title 42, section 1396r-5, with the 
221.9   addition of the group residential housing rate set according to 
221.10  Minnesota Statutes, section 256I.03, subdivision 5, to the 
221.11  personal needs allowance authorized by Minnesota Statutes, 
221.12  section 256B.0575. 
221.13     Sec. 83.  [PROGRAM OPTIONS FOR CERTAIN PERSONS WITH 
221.14  DEVELOPMENTAL DISABILITIES.] 
221.15     (a) The commissioner of human services shall ensure that 
221.16  services continue to be available to persons with developmental 
221.17  disabilities who were covered by social services supplemental 
221.18  grants prior to July 1, 2001.  Services shall be provided in 
221.19  priority order as follows: 
221.20     (1) to the extent possible, the commissioner shall 
221.21  establish for these persons targeted slots under the home and 
221.22  community-based waivered services program for persons with 
221.23  mental retardation or related conditions; 
221.24     (2) persons accommodated under clause (1) shall, if 
221.25  eligible, receive room and board services through group 
221.26  residential housing under Minnesota Statutes, chapter 256I; and 
221.27     (3) any remaining persons shall continue to receive 
221.28  services through community social services supplemental grants 
221.29  to the affected counties. 
221.30     (b) This section applies only to individuals receiving 
221.31  services under social services supplemental grants as of June 
221.32  30, 2001. 
221.33     Sec. 84.  [FEDERAL APPROVAL.] 
221.34     The commissioner of human services, by September 1, 2001, 
221.35  shall request any federal approval and plan amendments necessary 
221.36  to implement the choice of case manager provision in section 
222.1   256B.092, subdivision 2a, paragraph (b). 
222.2      Sec. 85.  [FEDERAL WAIVER REQUESTS.] 
222.3      The commissioner of human services shall submit to the 
222.4   federal Health Care Financing Administration by September 1, 
222.5   2001, a request for a home and community-based services waiver 
222.6   for day services, including:  community inclusion, supported 
222.7   employment, and day training and habilitation services defined 
222.8   in Minnesota Statutes, section 252.41, subdivision 3, clause 
222.9   (1), for persons eligible for the waiver under Minnesota 
222.10  Statutes, section 256B.092. 
222.11     Sec. 86. [REPEALER.] 
222.12     (a) Minnesota Statutes 2000, sections 256B.0951, 
222.13  subdivision 6; and 256E.06, subdivision 2b, are repealed. 
222.14     (b) Minnesota Statutes 2000, sections 145.9245; 256.476, 
222.15  subdivision 7; 256B.0912; 256B.0915, subdivisions 3a, 3b, and 
222.16  3c; and 256B.49, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10, 
222.17  are repealed. 
222.18     (c) Laws 1995, chapter 178, article 2, section 48, 
222.19  subdivision 6, is repealed. 
222.20     (d) Minnesota Rules, parts 9505.2455; 9505.2458; 9505.2460; 
222.21  9505.2465; 9505.2470; 9505.2473; 9505.2475; 9505.2480; 
222.22  9505.2485; 9505.2486; 9505.2490; 9505.2495; 9505.2496; 
222.23  9505.2500; 9505.3010; 9505.3015; 9505.3020; 9505.3025; 
222.24  9505.3030; 9505.3035; 9505.3040; 9505.3065; 9505.3085; 
222.25  9505.3135; 9505.3500; 9505.3510; 9505.3520; 9505.3530; 
222.26  9505.3535; 9505.3540; 9505.3545; 9505.3550; 9505.3560; 
222.27  9505.3570; 9505.3575; 9505.3580; 9505.3585; 9505.3600; 
222.28  9505.3610; 9505.3620; 9505.3622; 9505.3624; 9505.3626; 
222.29  9505.3630; 9505.3635; 9505.3640; 9505.3645; 9505.3650; 
222.30  9505.3660; and 9505.3670, are repealed. 
222.31                             ARTICLE 4 
222.32                CONSUMER INFORMATION AND ASSISTANCE 
222.33                      AND COMMUNITY-BASED CARE 
222.34     Section 1.  [144A.35] [EXPANSION OF BED DISTRIBUTION STUDY 
222.35  AND CREATION OF CRITICAL ACCESS SITES.] 
222.36     Subdivision 1.  [OLDER ADULT SERVICES DISTRIBUTION 
223.1   STUDY.] The commissioner of health, in coordination with the 
223.2   commissioner of human services, shall monitor and analyze the 
223.3   distribution of older adult services, including, but not limited 
223.4   to, nursing home beds, senior housing, housing with services 
223.5   units, and home and community-based services in the different 
223.6   geographic areas of the state.  The study shall include an 
223.7   analysis of the impact of amendments to the nursing home 
223.8   moratorium law which would allow for transfers of nursing home 
223.9   beds within the state.  The commissioner of health shall submit 
223.10  to the legislature, beginning January 15, 2002, and each January 
223.11  15 thereafter, an assessment of the distribution of long-term 
223.12  health care services by geographic area, with particular 
223.13  attention to service deficits or problems, the designation of 
223.14  critical access service sites, and corrective action plans. 
223.15     Subd. 2.  [CRITICAL ACCESS SERVICE SITE.] "Critical access 
223.16  service site" shall include nursing homes, senior housing, 
223.17  housing with services, and home and community-based services 
223.18  that are certified by the state as necessary providers of health 
223.19  care services to a specific geographic area.  For purposes of 
223.20  this requirement, a "necessary provider of health care services" 
223.21  is a provider that is: 
223.22     (1) located more than 20 miles, defined as official mileage 
223.23  as reported by the Minnesota department of transportation, from 
223.24  the next nearest long-term health care provider; 
223.25     (2) the sole long-term health care provider in the county; 
223.26  or 
223.27     (3) a long-term health care provider located in a medically 
223.28  underserved area or health professional shortage area. 
223.29     Subd. 3.  [IDENTIFICATION OF CRITICAL ACCESS SERVICE 
223.30  SITES.] Based on the results of the analysis completed in 
223.31  subdivision 1, the commissioners of health and human services 
223.32  shall identify and designate long-term health care providers as 
223.33  critical access service sites. 
223.34     Subd. 4.  [CRITICAL ACCESS SERVICE SITES.] The commissioner 
223.35  of health, in consultation with the commissioner of human 
223.36  services, shall: 
224.1      (1) develop and implement specific waivers to regulations 
224.2   governing health care personnel scope of duties, physical plant 
224.3   requirements, and location of community-based services, to 
224.4   address critical access service site older adult service needs; 
224.5      (2) identify payment barriers to the continued operation of 
224.6   older adult services in critical access service sites, and 
224.7   provide recommendations on changes to reimbursement rates to 
224.8   facilitate the continued operation of these services. 
224.9      Sec. 2.  Minnesota Statutes 2000, section 256.973, is 
224.10  amended by adding a subdivision to read: 
224.11     Subd. 6.  [GRANTS FOR HOME-SHARING PROGRAMS.] Grants 
224.12  awarded for home-sharing programs under this section shall be 
224.13  awarded through a request for proposals process every two years 
224.14  according to criteria developed by the commissioner.  In 
224.15  awarding grants, the commissioner shall not give priority to an 
224.16  applicant solely because the applicant has previously received a 
224.17  grant under this section.  Nothing under this subdivision shall 
224.18  prohibit the commissioner from evaluating the performance of a 
224.19  home-sharing program receiving a grant under this section and 
224.20  allocating funds based on the evaluation. 
224.21     Sec. 3.  Minnesota Statutes 2000, section 256.975, is 
224.22  amended by adding a subdivision to read: 
224.23     Subd. 7.  [CONSUMER INFORMATION AND ASSISTANCE; SENIOR 
224.24  LINKAGE.] (a) The Minnesota board on aging shall operate a 
224.25  statewide information and assistance service to aid older 
224.26  Minnesotans and their families in making informed choices about 
224.27  long-term care options and health care benefits.  Language 
224.28  services to persons with limited English language skills may be 
224.29  made available.  The service, known as Senior LinkAge Line, must 
224.30  be available during business hours through a statewide toll-free 
224.31  number and must also be available through the Internet. 
224.32     (b) The service must assist older adults, caregivers, and 
224.33  providers in accessing information about choices in long-term 
224.34  care services that are purchased through private providers or 
224.35  available through public options.  The service must: 
224.36     (1) develop a comprehensive database that includes detailed 
225.1   listings in both consumer- and provider-oriented formats; 
225.2      (2) make the database accessible on the Internet and 
225.3   through other telecommunication and media-related tools; 
225.4      (3) link callers to interactive long-term care screening 
225.5   tools and make these tools available through the Internet by 
225.6   integrating the tools with the database; 
225.7      (4) develop community education materials with a focus on 
225.8   planning for long-term care and evaluating independent living, 
225.9   housing, and service options; 
225.10     (5) conduct an outreach campaign to assist older adults and 
225.11  their caregivers in finding information on the Internet and 
225.12  through other means of communication; 
225.13     (6) implement a messaging system for overflow callers and 
225.14  respond to these callers by the next business day; 
225.15     (7) link callers with county human services and other 
225.16  providers to receive more in-depth assistance and consultation 
225.17  related to long-term care options; and 
225.18     (8) link callers with quality profiles for nursing 
225.19  facilities and other providers developed by the commissioner of 
225.20  health. 
225.21     (c) The Minnesota board on aging shall conduct an 
225.22  evaluation of the effectiveness of the statewide information and 
225.23  assistance, and submit this evaluation to the legislature by 
225.24  December 1, 2002.  The evaluation must include an analysis of 
225.25  funding adequacy, gaps in service delivery, continuity in 
225.26  information between the service and identified linkages, and 
225.27  potential use of private funding to enhance the service. 
225.28     Sec. 4.  [256.9754] [COMMUNITY SERVICES DEVELOPMENT GRANTS 
225.29  PROGRAM.] 
225.30     Subdivision 1.  [DEFINITIONS.] For purposes of this 
225.31  section, the following terms have the meanings given. 
225.32     (a) "Community" means a town, township, city, or targeted 
225.33  neighborhood within a city, or a consortium of towns, townships, 
225.34  cities, or targeted neighborhoods within cities. 
225.35     (b) "Older adult services" means any services available 
225.36  under the elderly waiver program or alternative care grant 
226.1   programs; nursing facility services; transportation services; 
226.2   respite services; and other community-based services identified 
226.3   as necessary either to maintain lifestyle choices for older 
226.4   Minnesotans, or to promote independence. 
226.5      (c) "Older adult" refers to individuals 65 years of age and 
226.6   older. 
226.7      Subd. 2.  [CREATION.] The community services development 
226.8   grants program is created under the administration of the 
226.9   commissioner of human services.  
226.10     Subd. 3.  [PROVISION OF GRANTS.] The commissioner shall 
226.11  make grants available to communities, providers of older adult 
226.12  services identified in subdivision 1, or to a consortium of 
226.13  providers of older adult services, to establish older adult 
226.14  services.  Grants may be provided for capital and other costs 
226.15  including, but not limited to, start-up and training costs, 
226.16  equipment, and supplies related to older adult services or other 
226.17  residential or service alternatives to nursing facility care.  
226.18  Grants may also be made to renovate current buildings, provide 
226.19  transportation services, fund programs that would allow older 
226.20  adults or disabled individuals to stay in their own homes by 
226.21  sharing a home, fund programs that coordinate and manage formal 
226.22  and informal services to older adults in their homes to enable 
226.23  them to live as independently as possible in their own homes as 
226.24  an alternative to nursing home care, or expand state-funded 
226.25  programs in the area. 
226.26     Subd. 4.  [ELIGIBILITY.] Grants may be awarded only to 
226.27  communities and providers or to a consortium of providers that 
226.28  have a local match of 50 percent of the costs for the project in 
226.29  the form of donations, local tax dollars, in-kind donations, 
226.30  fundraising, or other local matches. 
226.31     Subd. 5.  [GRANT PREFERENCE.] The commissioner of human 
226.32  services may award grants to the extent grant funds are 
226.33  available and to the extent applications are approved by the 
226.34  commissioner.  Denial of approval of an application in one year 
226.35  does not preclude submission of an application in a subsequent 
226.36  year.  The maximum grant amount is limited to $750,000. 
227.1      Sec. 5.  Minnesota Statutes 2000, section 256B.0911, 
227.2   subdivision 1, is amended to read: 
227.3      Subdivision 1.  [PURPOSE AND GOAL.] (a) The purpose of the 
227.4   preadmission screening program long-term care consultation 
227.5   services is to assist persons with long-term or chronic care 
227.6   needs in making long-term care decisions and selecting options 
227.7   that meet their needs and reflect their preferences.  The 
227.8   availability of, and access to, information and other types of 
227.9   assistance is also intended to prevent or delay certified 
227.10  nursing facility placements by assessing applicants and 
227.11  residents and offering cost-effective alternatives appropriate 
227.12  for the person's needs and to provide transition assistance 
227.13  after admission.  Further, the goal of the program these 
227.14  services is to contain costs associated with unnecessary 
227.15  certified nursing facility admissions.  The commissioners of 
227.16  human services and health shall seek to maximize use of 
227.17  available federal and state funds and establish the broadest 
227.18  program possible within the funding available. 
227.19     (b) These services must be coordinated with services 
227.20  provided under sections 256.975, subdivision 7, and 256.9772, 
227.21  and with services provided by other public and private agencies 
227.22  in the community to offer a variety of cost-effective 
227.23  alternatives to persons with disabilities and elderly persons.  
227.24  The county agency providing long-term care consultation services 
227.25  shall encourage the use of volunteers from families, religious 
227.26  organizations, social clubs, and similar civic and service 
227.27  organizations to provide community-based services. 
227.28     Sec. 6.  Minnesota Statutes 2000, section 256B.0911, is 
227.29  amended by adding a subdivision to read: 
227.30     Subd. 1a.  [DEFINITIONS.] For purposes of this section, the 
227.31  following definitions apply: 
227.32     (a) "Long-term care consultation services" means: 
227.33     (1) providing information and education to the general 
227.34  public regarding availability of the services authorized under 
227.35  this section; 
227.36     (2) an intake process that provides access to the services 
228.1   described in this section; 
228.2      (3) assessment of the health, psychological, and social 
228.3   needs of referred individuals; 
228.4      (4) assistance in identifying services needed to maintain 
228.5   an individual in the least restrictive environment; 
228.6      (5) providing recommendations on cost-effective community 
228.7   services that are available to the individual; 
228.8      (6) development of an individual's community support plan; 
228.9      (7) providing information regarding eligibility for 
228.10  Minnesota health care programs; 
228.11     (8) preadmission screening to determine the need for a 
228.12  nursing facility level of care; 
228.13     (9) preliminary determination of Minnesota health care 
228.14  programs eligibility for individuals who need a nursing facility 
228.15  level of care, with appropriate referrals for final 
228.16  determination; 
228.17     (10) providing recommendations for nursing facility 
228.18  placement when there are no cost-effective community services 
228.19  available; and 
228.20     (11) assistance to transition people back to community 
228.21  settings after facility admission. 
228.22     (b) "Minnesota health care programs" means the medical 
228.23  assistance program under chapter 256B, the alternative care 
228.24  program under section 256B.0913, and the prescription drug 
228.25  program under section 256.955. 
228.26     Sec. 7.  Minnesota Statutes 2000, section 256B.0911, 
228.27  subdivision 3, is amended to read: 
228.28     Subd. 3.  [PERSONS RESPONSIBLE FOR CONDUCTING THE 
228.29  PREADMISSION SCREENING LONG-TERM CARE CONSULTATION TEAM.] (a) A 
228.30  local screening long-term care consultation team shall be 
228.31  established by the county board of commissioners.  Each local 
228.32  screening consultation team shall consist of screeners who are a 
228.33  at least one social worker and a at least one public health 
228.34  nurse from their respective county agencies.  The board may 
228.35  designate public health or social services as the lead agency 
228.36  for long-term care consultation services.  If a county does not 
229.1   have a public health nurse available, it may request approval 
229.2   from the commissioner to assign a county registered nurse with 
229.3   at least one year experience in home care to participate on the 
229.4   team.  The screening team members must confer regarding the most 
229.5   appropriate care for each individual screened.  Two or more 
229.6   counties may collaborate to establish a joint local screening 
229.7   consultation team or teams. 
229.8      (b) In assessing a person's needs, screeners shall have a 
229.9   physician available for consultation and shall consider the 
229.10  assessment of the individual's attending physician, if any.  The 
229.11  individual's physician shall be included if the physician 
229.12  chooses to participate.  Other personnel may be included on the 
229.13  team as deemed appropriate by the county agencies.  The team is 
229.14  responsible for providing long-term care consultation services 
229.15  to all persons located in the county who request the services, 
229.16  regardless of eligibility for Minnesota health care programs. 
229.17     Sec. 8.  Minnesota Statutes 2000, section 256B.0911, is 
229.18  amended by adding a subdivision to read: 
229.19     Subd. 3a.  [ASSESSMENT AND SUPPORT PLANNING.] (a) Persons 
229.20  requesting assessment, services planning, or other assistance 
229.21  intended to support community-based living must be visited by a 
229.22  long-term care consultation team within ten working days after 
229.23  the date on which an assessment was requested or recommended.  
229.24  Assessments must be conducted according to paragraphs (b) to (g).
229.25     (b) The county may utilize a team of either the social 
229.26  worker or public health nurse, or both, to conduct the 
229.27  assessment in a face-to-face interview.  The consultation team 
229.28  members must confer regarding the most appropriate care for each 
229.29  individual screened or assessed. 
229.30     (c) The long-term care consultation team must assess the 
229.31  health and social needs of the person, using an assessment form 
229.32  provided by the commissioner of human services. 
229.33     (d) The team must conduct the assessment in a face-to-face 
229.34  interview with the person being assessed and the person's legal 
229.35  representative, if applicable. 
229.36     (e) The team must provide the person, or the person's legal 
230.1   representative, with written recommendations for facility- or 
230.2   community-based services.  The team must document that the most 
230.3   cost-effective alternatives available were offered to the 
230.4   individual.  For purposes of this requirement, "cost-effective 
230.5   alternatives" means community services and living arrangements 
230.6   that cost the same as or less than nursing facility care. 
230.7      (f) If the person chooses to use community-based services, 
230.8   the team must provide the person or the person's legal 
230.9   representative with a written community support plan, regardless 
230.10  of whether the individual is eligible for Minnesota health care 
230.11  programs.  The person may request assistance in developing a 
230.12  community support plan without participating in a complete 
230.13  assessment. 
230.14     (g) The team must give the person receiving assessment or 
230.15  support planning, or the person's legal representative, 
230.16  materials supplied by the commissioner of human services 
230.17  containing the following information: 
230.18     (1) the purpose of preadmission screening and assessment; 
230.19     (2) information about Minnesota health care programs; 
230.20     (3) the person's freedom to accept or reject the 
230.21  recommendations of the team; 
230.22     (4) the person's right to confidentiality under the 
230.23  Minnesota Government Data Practices Act, chapter 13; and 
230.24     (5) the person's right to appeal the decision regarding the 
230.25  need for nursing facility level of care or the county's final 
230.26  decisions regarding public programs eligibility according to 
230.27  section 256.045, subdivision 3. 
230.28     Sec. 9.  Minnesota Statutes 2000, section 256B.0911, is 
230.29  amended by adding a subdivision to read: 
230.30     Subd. 3b.  [TRANSITION ASSISTANCE.] (a) A long-term care 
230.31  consultation team shall provide assistance to persons residing 
230.32  in a nursing facility, hospital, regional treatment center, or 
230.33  intermediate care facility for persons with mental retardation 
230.34  who request or are referred for such assistance.  Transition 
230.35  assistance must include assessment, community support plan 
230.36  development, referrals to Minnesota health care programs, and 
231.1   referrals to programs that provide assistance with housing. 
231.2      (b) The county shall develop transition processes with 
231.3   institutional social workers and discharge planners to ensure 
231.4   that: 
231.5      (1) persons admitted to facilities receive information 
231.6   about transition assistance that is available; 
231.7      (2) the assessment is completed for persons within ten 
231.8   working days of the date of request or recommendation for 
231.9   assessment; and 
231.10     (3) there is a plan for transition and follow-up for the 
231.11  individual's return to the community.  The plan must require 
231.12  notification of other local agencies when a person who may 
231.13  require assistance is screened by one county for admission to a 
231.14  facility located in another county. 
231.15     (c) If a person who is eligible for a Minnesota health care 
231.16  program is admitted to a nursing facility, the nursing facility 
231.17  must include a consultation team member or the case manager in 
231.18  the discharge planning process. 
231.19     Sec. 10.  Minnesota Statutes 2000, section 256B.0911, is 
231.20  amended by adding a subdivision to read: 
231.21     Subd. 4a.  [PREADMISSION SCREENING ACTIVITIES RELATED TO 
231.22  NURSING FACILITY ADMISSIONS.] (a) All applicants to Medicaid 
231.23  certified nursing facilities, including certified boarding care 
231.24  facilities, must be screened prior to admission regardless of 
231.25  income, assets, or funding sources for nursing facility care, 
231.26  except as described in subdivision 4b.  The purpose of the 
231.27  screening is to determine the need for nursing facility level of 
231.28  care as described in paragraph (d) and to complete activities 
231.29  required under federal law related to mental illness and mental 
231.30  retardation as outlined in paragraph (b). 
231.31     (b) A person who has a diagnosis or possible diagnosis of 
231.32  mental illness, mental retardation, or a related condition must 
231.33  receive a preadmission screening before admission regardless of 
231.34  the exemptions outlined in subdivision 4b, paragraph (b), to 
231.35  identify the need for further evaluation and specialized 
231.36  services, unless the admission prior to screening is authorized 
232.1   by the local mental health authority or the local developmental 
232.2   disabilities case manager, or unless authorized by the county 
232.3   agency according to Public Law Number 100-508.  
232.4      The following criteria apply to the preadmission screening: 
232.5      (1) the county must use forms and criteria developed by the 
232.6   commissioner of human services to identify persons who require 
232.7   referral for further evaluation and determination of the need 
232.8   for specialized services; and 
232.9      (2) the evaluation and determination of the need for 
232.10  specialized services must be done by: 
232.11     (i) a qualified independent mental health professional, for 
232.12  persons with a primary or secondary diagnosis of a serious 
232.13  mental illness; or 
232.14     (ii) a qualified mental retardation professional, for 
232.15  persons with a primary or secondary diagnosis of mental 
232.16  retardation or related conditions.  For purposes of this 
232.17  requirement, a qualified mental retardation professional must 
232.18  meet the standards for a qualified mental retardation 
232.19  professional under Code of Federal Regulations, title 42, 
232.20  section 483.430. 
232.21     (c) The local county mental health authority or the state 
232.22  mental retardation authority under Public Laws Numbers 100-203 
232.23  and 101-508 may prohibit admission to a nursing facility if the 
232.24  individual does not meet the nursing facility level of care 
232.25  criteria or needs specialized services as defined in Public Laws 
232.26  Numbers 100-203 and 101-508.  For purposes of this section, 
232.27  "specialized services" for a person with mental retardation or a 
232.28  related condition means active treatment as that term is defined 
232.29  under Code of Federal Regulations, title 42, section 483.440, 
232.30  paragraph (a), clause (1). 
232.31     (d) The determination of the need for nursing facility 
232.32  level of care must be made according to criteria developed by 
232.33  the commissioner of human services.  In assessing a person's 
232.34  needs, consultation team members shall have a physician 
232.35  available for consultation and shall consider the assessment of 
232.36  the individual's attending physician, if any.  The individual's 
233.1   physician must be included if the physician chooses to 
233.2   participate.  Other personnel may be included on the team as 
233.3   deemed appropriate by the county. 
233.4      Sec. 11.  Minnesota Statutes 2000, section 256B.0911, is 
233.5   amended by adding a subdivision to read: 
233.6      Subd. 4b.  [EXEMPTIONS AND EMERGENCY ADMISSIONS.] (a) 
233.7   Exemptions from the federal screening requirements outlined in 
233.8   subdivision 4a, paragraphs (b) and (c), are limited to: 
233.9      (1) a person who, having entered an acute care facility 
233.10  from a certified nursing facility, is returning to a certified 
233.11  nursing facility; and 
233.12     (2) a person transferring from one certified nursing 
233.13  facility in Minnesota to another certified nursing facility in 
233.14  Minnesota. 
233.15     (b) Persons who are exempt from preadmission screening for 
233.16  purposes of level of care determination include: 
233.17     (1) persons described in paragraph (a); 
233.18     (2) an individual who has a contractual right to have 
233.19  nursing facility care paid for indefinitely by the veterans' 
233.20  administration; 
233.21     (3) an individual enrolled in a demonstration project under 
233.22  section 256B.69, subdivision 8, at the time of application to a 
233.23  nursing facility; 
233.24     (4) an individual currently being served under the 
233.25  alternative care program or under a home and community-based 
233.26  services waiver authorized under section 1915(c) of the federal 
233.27  Social Security Act; and 
233.28     (5) individuals admitted to a certified nursing facility 
233.29  for a short-term stay, which is expected to be 14 days or less 
233.30  in duration based upon a physician's certification, and who have 
233.31  been assessed and approved for nursing facility admission within 
233.32  the previous six months.  This exemption applies only if the 
233.33  consultation team member determines at the time of the initial 
233.34  assessment of the six-month period that it is appropriate to use 
233.35  the nursing facility for short-term stays and that there is an 
233.36  adequate plan of care for return to the home or community-based 
234.1   setting.  If a stay exceeds 14 days, the individual must be 
234.2   referred no later than the first county working day following 
234.3   the 14th resident day for a screening, which must be completed 
234.4   within five working days of the referral.  The payment 
234.5   limitations in subdivision 7 apply to an individual found at 
234.6   screening to not meet the level of care criteria for admission 
234.7   to a certified nursing facility. 
234.8      (c) Persons admitted to a Medicaid-certified nursing 
234.9   facility from the community on an emergency basis as described 
234.10  in paragraph (d) or from an acute care facility on a nonworking 
234.11  day must be screened the first working day after admission. 
234.12     (d) Emergency admission to a nursing facility prior to 
234.13  screening is permitted when all of the following conditions are 
234.14  met: 
234.15     (1) a person is admitted from the community to a certified 
234.16  nursing or certified boarding care facility during county 
234.17  nonworking hours; 
234.18     (2) a physician has determined that delaying admission 
234.19  until preadmission screening is completed would adversely affect 
234.20  the person's health and safety; 
234.21     (3) there is a recent precipitating event that precludes 
234.22  the client from living safely in the community, such as 
234.23  sustaining an injury, sudden onset of acute illness, or a 
234.24  caregiver's inability to continue to provide care; 
234.25     (4) the attending physician has authorized the emergency 
234.26  placement and has documented the reason that the emergency 
234.27  placement is recommended; and 
234.28     (5) the county is contacted on the first working day 
234.29  following the emergency admission. 
234.30  Transfer of a patient from an acute care hospital to a nursing 
234.31  facility is not considered an emergency except for a person who 
234.32  has received hospital services in the following situations: 
234.33  hospital admission for observation, care in an emergency room 
234.34  without hospital admission, or following hospital 24-hour bed 
234.35  care. 
234.36     Sec. 12.  Minnesota Statutes 2000, section 256B.0911, is 
235.1   amended by adding a subdivision to read: 
235.2      Subd. 4c.  [SCREENING REQUIREMENTS.] (a) A person may be 
235.3   screened for nursing facility admission by telephone or in a 
235.4   face-to-face screening interview.  Consultation team members 
235.5   shall identify each individual's needs using the following 
235.6   categories: 
235.7      (1) the person needs no face-to-face screening interview to 
235.8   determine the need for nursing facility level of care based on 
235.9   information obtained from other health care professionals; 
235.10     (2) the person needs an immediate face-to-face screening 
235.11  interview to determine the need for nursing facility level of 
235.12  care and complete activities required under subdivision 4a; or 
235.13     (3) the person may be exempt from screening requirements as 
235.14  outlined in subdivision 4b, but will need transitional 
235.15  assistance after admission or in-person follow-along after a 
235.16  return home. 
235.17     (b) Persons admitted on a nonemergency basis to a 
235.18  Medicaid-certified nursing facility must be screened prior to 
235.19  admission. 
235.20     (c) The long-term care consultation team shall recommend a 
235.21  case mix classification for persons admitted to a certified 
235.22  nursing facility when sufficient information is received to make 
235.23  that classification.  The nursing facility is authorized to 
235.24  conduct all case mix assessments for persons who have been 
235.25  screened prior to admission for whom the county did not 
235.26  recommend a case mix classification.  The nursing facility is 
235.27  authorized to conduct all case mix assessments for persons 
235.28  admitted to the facility prior to a preadmission screening.  The 
235.29  county retains the responsibility of distributing appropriate 
235.30  case mix forms to the nursing facility. 
235.31     (d) The county screening or intake activity must include 
235.32  processes to identify persons who may require transition 
235.33  assistance as described in subdivision 3b. 
235.34     Sec. 13.  Minnesota Statutes 2000, section 256B.0911, 
235.35  subdivision 5, is amended to read: 
235.36     Subd. 5.  [SIMPLIFICATION OF FORMS ADMINISTRATIVE 
236.1   ACTIVITY.] The commissioner shall minimize the number of forms 
236.2   required in the preadmission screening process provision of 
236.3   long-term care consultation services and shall limit the 
236.4   screening document to items necessary for care community support 
236.5   plan approval, reimbursement, program planning, evaluation, and 
236.6   policy development. 
236.7      Sec. 14.  Minnesota Statutes 2000, section 256B.0911, 
236.8   subdivision 6, is amended to read: 
236.9      Subd. 6.  [PAYMENT FOR PREADMISSION SCREENING LONG-TERM 
236.10  CARE CONSULTATION SERVICES.] (a) The total screening payment for 
236.11  each county must be paid monthly by certified nursing facilities 
236.12  in the county.  The monthly amount to be paid by each nursing 
236.13  facility for each fiscal year must be determined by dividing the 
236.14  county's annual allocation for screenings long-term care 
236.15  consultation services by 12 to determine the monthly payment and 
236.16  allocating the monthly payment to each nursing facility based on 
236.17  the number of licensed beds in the nursing facility.  Payments 
236.18  to counties in which there is no certified nursing facility must 
236.19  be made by increasing the payment rate of the two facilities 
236.20  located nearest to the county seat. 
236.21     (b) The commissioner shall include the total annual payment 
236.22  for screening determined under paragraph (a) for each nursing 
236.23  facility according to section 256B.431, subdivision 2b, 
236.24  paragraph (g), 256B.434, or 256B.435. 
236.25     (c) Payments for screening activities long-term care 
236.26  consultation services are available to the county or counties to 
236.27  cover staff salaries and expenses to provide the screening 
236.28  function services described in subdivision 1a.  The lead agency 
236.29  county shall employ, or contract with other agencies to employ, 
236.30  within the limits of available funding, sufficient personnel 
236.31  to conduct the preadmission screening activity provide long-term 
236.32  care consultation services while meeting the state's long-term 
236.33  care outcomes and objectives as defined in section 256B.0917, 
236.34  subdivision 1.  The local agency county shall be accountable for 
236.35  meeting local objectives as approved by the commissioner in the 
236.36  CSSA biennial plan. 
237.1      (d) Notwithstanding section 256B.0641, overpayments 
237.2   attributable to payment of the screening costs under the medical 
237.3   assistance program may not be recovered from a facility.  
237.4      (e) The commissioner of human services shall amend the 
237.5   Minnesota medical assistance plan to include reimbursement for 
237.6   the local screening consultation teams. 
237.7      (f) The county may bill, as case management services, 
237.8   assessments, support planning, and follow-along provided to 
237.9   persons determined to be eligible for case management under 
237.10  Minnesota health care programs.  No individual or family member 
237.11  shall be charged for an initial assessment or initial support 
237.12  plan development provided under subdivision 3a or 3b. 
237.13     Sec. 15.  Minnesota Statutes 2000, section 256B.0911, 
237.14  subdivision 7, is amended to read: 
237.15     Subd. 7.  [REIMBURSEMENT FOR CERTIFIED NURSING FACILITIES.] 
237.16  (a) Medical assistance reimbursement for nursing facilities 
237.17  shall be authorized for a medical assistance recipient only if a 
237.18  preadmission screening has been conducted prior to admission or 
237.19  the local county agency has authorized an exemption.  Medical 
237.20  assistance reimbursement for nursing facilities shall not be 
237.21  provided for any recipient who the local screener has determined 
237.22  does not meet the level of care criteria for nursing facility 
237.23  placement or, if indicated, has not had a level II PASARR OBRA 
237.24  evaluation as required under the federal Omnibus Reconciliation 
237.25  Act of 1987 completed unless an admission for a recipient with 
237.26  mental illness is approved by the local mental health authority 
237.27  or an admission for a recipient with mental retardation or 
237.28  related condition is approved by the state mental retardation 
237.29  authority. 
237.30     (b) The nursing facility must not bill a person who is not 
237.31  a medical assistance recipient for resident days that preceded 
237.32  the date of completion of screening activities as required under 
237.33  subdivisions 4a, 4b, and 4c.  The nursing facility must include 
237.34  unreimbursed resident days in the nursing facility resident day 
237.35  totals reported to the commissioner. 
237.36     (c) The commissioner shall make a request to the health 
238.1   care financing administration for a waiver allowing screening 
238.2   team approval of Medicaid payments for certified nursing 
238.3   facility care.  An individual has a choice and makes the final 
238.4   decision between nursing facility placement and community 
238.5   placement after the screening team's recommendation, except as 
238.6   provided in paragraphs (b) and (c) subdivision 4a, paragraph (c).
238.7      (c) The local county mental health authority or the state 
238.8   mental retardation authority under Public Law Numbers 100-203 
238.9   and 101-508 may prohibit admission to a nursing facility, if the 
238.10  individual does not meet the nursing facility level of care 
238.11  criteria or needs specialized services as defined in Public Law 
238.12  Numbers 100-203 and 101-508.  For purposes of this section, 
238.13  "specialized services" for a person with mental retardation or a 
238.14  related condition means "active treatment" as that term is 
238.15  defined in Code of Federal Regulations, title 42, section 
238.16  483.440(a)(1). 
238.17     (e) Appeals from the screening team's recommendation or the 
238.18  county agency's final decision shall be made according to 
238.19  section 256.045, subdivision 3. 
238.20     Sec. 16.  Minnesota Statutes 2000, section 256B.0913, 
238.21  subdivision 1, is amended to read: 
238.22     Subdivision 1.  [PURPOSE AND GOALS.] The purpose of the 
238.23  alternative care program is to provide funding for or access to 
238.24  home and community-based services for frail elderly persons, in 
238.25  order to limit nursing facility placements.  The program is 
238.26  designed to support frail elderly persons in their desire to 
238.27  remain in the community as independently and as long as possible 
238.28  and to support informal caregivers in their efforts to provide 
238.29  care for frail elderly people.  Further, the goals of the 
238.30  program are: 
238.31     (1) to contain medical assistance expenditures by providing 
238.32  funding care in the community at a cost the same or less than 
238.33  nursing facility costs; and 
238.34     (2) to maintain the moratorium on new construction of 
238.35  nursing home beds. 
238.36     Sec. 17.  Minnesota Statutes 2000, section 256B.0913, 
239.1   subdivision 2, is amended to read: 
239.2      Subd. 2.  [ELIGIBILITY FOR SERVICES.] Alternative care 
239.3   services are available to all frail older Minnesotans.  This 
239.4   includes: 
239.5      (1) persons who are receiving medical assistance and served 
239.6   under the medical assistance program or the Medicaid waiver 
239.7   program; 
239.8      (2) persons age 65 or older who are not eligible for 
239.9   medical assistance without a spenddown or waiver obligation but 
239.10  who would be eligible for medical assistance within 180 days of 
239.11  admission to a nursing facility and served under subject to 
239.12  subdivisions 4 to 13; and 
239.13     (3) persons who are paying for their services out-of-pocket.
239.14     Sec. 18.  Minnesota Statutes 2000, section 256B.0913, 
239.15  subdivision 4, is amended to read: 
239.16     Subd. 4.  [ELIGIBILITY FOR FUNDING FOR SERVICES FOR 
239.17  NONMEDICAL ASSISTANCE RECIPIENTS.] (a) Funding for services 
239.18  under the alternative care program is available to persons who 
239.19  meet the following criteria: 
239.20     (1) the person has been screened by the county screening 
239.21  team or, if previously screened and served under the alternative 
239.22  care program, assessed by the local county social worker or 
239.23  public health nurse determined by a community assessment under 
239.24  section 256B.0911, to be a person who would require the level of 
239.25  care provided in a nursing facility, but for the provision of 
239.26  services under the alternative care program; 
239.27     (2) the person is age 65 or older; 
239.28     (3) the person would be financially eligible for medical 
239.29  assistance within 180 days of admission to a nursing facility; 
239.30     (4) the person meets the asset transfer requirements of is 
239.31  not ineligible for the medical assistance program due to an 
239.32  asset transfer penalty; 
239.33     (5) the screening team would recommend nursing facility 
239.34  admission or continued stay for the person if alternative care 
239.35  services were not available; 
239.36     (6) the person needs services that are not available at 
240.1   that time in the county funded through other county, state, or 
240.2   federal funding sources; and 
240.3      (7) (6) the monthly cost of the alternative care services 
240.4   funded by the program for this person does not exceed 75 percent 
240.5   of the statewide average monthly medical assistance payment for 
240.6   nursing facility care at the individual's case mix 
240.7   classification weighted average monthly nursing facility rate of 
240.8   the case mix resident class to which the individual alternative 
240.9   care client would be assigned under Minnesota Rules, parts 
240.10  9549.0050 to 9549.0059, less the recipient's maintenance needs 
240.11  allowance as described in section 256B.0915, subdivision 1d, 
240.12  paragraph (a), until the first day of the state fiscal year in 
240.13  which the resident assessment system, under section 256B.437, 
240.14  for nursing home rate determination is implemented.  Effective 
240.15  on the first day of the state fiscal year in which a resident 
240.16  assessment system, under section 256B.437, for nursing home rate 
240.17  determination is implemented and the first day of each 
240.18  subsequent state fiscal year, the monthly cost of alternative 
240.19  care services for this person shall not exceed the alternative 
240.20  care monthly cap for the case mix resident class to which the 
240.21  alternative care client would be assigned under Minnesota Rules, 
240.22  parts 9549.0050 to 9549.0059, which was in effect on the last 
240.23  day of the previous state fiscal year, and adjusted by the 
240.24  greater of any legislatively adopted home and community-based 
240.25  services cost-of-living percentage increase or any legislatively 
240.26  adopted statewide percent rate increase for nursing facilities.  
240.27  This monthly limit does not prohibit the alternative care client 
240.28  from payment for additional services, but in no case may the 
240.29  cost of additional services purchased under this section exceed 
240.30  the difference between the client's monthly service limit 
240.31  defined under section 256B.0915, subdivision 3, and the 
240.32  alternative care program monthly service limit defined in this 
240.33  paragraph.  If medical supplies and equipment or adaptations 
240.34  environmental modifications are or will be purchased for an 
240.35  alternative care services recipient, the costs may be prorated 
240.36  on a monthly basis throughout the year in which they are 
241.1   purchased for up to 12 consecutive months beginning with the 
241.2   month of purchase.  If the monthly cost of a recipient's other 
241.3   alternative care services exceeds the monthly limit established 
241.4   in this paragraph, the annual cost of the alternative care 
241.5   services shall be determined.  In this event, the annual cost of 
241.6   alternative care services shall not exceed 12 times the monthly 
241.7   limit calculated described in this paragraph. 
241.8      (b) Individuals who meet the criteria in paragraph (a) and 
241.9   who have been approved for alternative care funding are called 
241.10  180-day eligible clients. 
241.11     (c) The statewide average payment for nursing facility care 
241.12  is the statewide average monthly nursing facility rate in effect 
241.13  on July 1 of the fiscal year in which the cost is incurred, less 
241.14  the statewide average monthly income of nursing facility 
241.15  residents who are age 65 or older and who are medical assistance 
241.16  recipients in the month of March of the previous fiscal year.  
241.17  This monthly limit does not prohibit the 180-day eligible client 
241.18  from paying for additional services needed or desired.  
241.19     (d) In determining the total costs of alternative care 
241.20  services for one month, the costs of all services funded by the 
241.21  alternative care program, including supplies and equipment, must 
241.22  be included. 
241.23     (e) Alternative care funding under this subdivision is not 
241.24  available for a person who is a medical assistance recipient or 
241.25  who would be eligible for medical assistance without a 
241.26  spenddown, unless authorized by the commissioner or waiver 
241.27  obligation.  A person whose initial application for medical 
241.28  assistance is being processed may be served under the 
241.29  alternative care program for a period up to 60 days.  If the 
241.30  individual is found to be eligible for medical assistance, the 
241.31  county must bill medical assistance must be billed for services 
241.32  payable under the federally approved elderly waiver plan and 
241.33  delivered from the date the individual was found eligible 
241.34  for services reimbursable under the federally approved elderly 
241.35  waiver program plan.  Notwithstanding this provision, upon 
241.36  federal approval, alternative care funds may not be used to pay 
242.1   for any service the cost of which is payable by medical 
242.2   assistance or which is used by a recipient to meet a medical 
242.3   assistance income spenddown or waiver obligation.  
242.4      (f) (c) Alternative care funding is not available for a 
242.5   person who resides in a licensed nursing home or, certified 
242.6   boarding care home, hospital, or intermediate care facility, 
242.7   except for case management services which are being provided in 
242.8   support of the discharge planning process to a nursing home 
242.9   resident or certified boarding care home resident who is 
242.10  ineligible for case management funded by medical assistance. 
242.11     Sec. 19.  Minnesota Statutes 2000, section 256B.0913, 
242.12  subdivision 5, is amended to read: 
242.13     Subd. 5.  [SERVICES COVERED UNDER ALTERNATIVE CARE.] (a) 
242.14  Alternative care funding may be used for payment of costs of: 
242.15     (1) adult foster care; 
242.16     (2) adult day care; 
242.17     (3) home health aide; 
242.18     (4) homemaker services; 
242.19     (5) personal care; 
242.20     (6) case management; 
242.21     (7) respite care; 
242.22     (8) assisted living; 
242.23     (9) residential care services; 
242.24     (10) care-related supplies and equipment; 
242.25     (11) meals delivered to the home; 
242.26     (12) transportation; 
242.27     (13) skilled nursing; 
242.28     (14) chore services; 
242.29     (15) companion services; 
242.30     (16) nutrition services; 
242.31     (17) training for direct informal caregivers; 
242.32     (18) telemedicine devices to monitor recipients in their 
242.33  own homes as an alternative to hospital care, nursing home care, 
242.34  or home visits; and 
242.35     (19) other services including which includes discretionary 
242.36  funds and direct cash payments to clients, approved by the 
243.1   county agency following approval by the commissioner, subject to 
243.2   the provisions of paragraph (m) (j).  Total annual payments for "
243.3   other services" for all clients within a county may not exceed 
243.4   either ten percent of that county's annual alternative care 
243.5   program base allocation or $5,000, whichever is greater.  In no 
243.6   case shall this amount exceed the county's total annual 
243.7   alternative care program base allocation; and 
243.8      (20) environmental modifications. 
243.9      (b) The county agency must ensure that the funds are not 
243.10  used only to supplement and not to supplant services available 
243.11  through other public assistance or services programs. 
243.12     (c) Unless specified in statute, the service definitions 
243.13  and standards for alternative care services shall be the same as 
243.14  the service definitions and standards defined specified in the 
243.15  federally approved elderly waiver plan.  Except for the county 
243.16  agencies' approval of direct cash payments to clients as 
243.17  described in paragraph (j) or for a provider of supplies and 
243.18  equipment when the monthly cost of the supplies and equipment is 
243.19  less than $250, persons or agencies must be employed by or under 
243.20  a contract with the county agency or the public health nursing 
243.21  agency of the local board of health in order to receive funding 
243.22  under the alternative care program.  Supplies and equipment may 
243.23  be purchased from a non-Medicaid certified vendor if the cost 
243.24  for the item is less than that of a Medicaid vendor.  
243.25     (d) The adult foster care rate shall be considered a 
243.26  difficulty of care payment and shall not include room and 
243.27  board.  The adult foster care daily rate shall be negotiated 
243.28  between the county agency and the foster care provider.  The 
243.29  rate established under this section shall not exceed 75 percent 
243.30  of the state average monthly nursing home payment for the case 
243.31  mix classification to which the individual receiving foster care 
243.32  is assigned, and it must allow for other alternative care 
243.33  services to be authorized by the case manager.  The alternative 
243.34  care payment for the foster care service in combination with the 
243.35  payment for other alternative care services, including case 
243.36  management, must not exceed the limit specified in subdivision 
244.1   4, paragraph (a), clause (6). 
244.2      (e) Personal care services may be provided by a personal 
244.3   care provider organization. must meet the service standards 
244.4   defined in the federally approved elderly waiver plan, except 
244.5   that a county agency may contract with a client's relative of 
244.6   the client who meets the relative hardship waiver requirement as 
244.7   defined in section 256B.0627, subdivision 4, paragraph (b), 
244.8   clause (10), to provide personal care services, but must ensure 
244.9   nursing if the county agency ensures supervision of this service 
244.10  by a registered nurse or mental health practitioner.  Covered 
244.11  personal care services defined in section 256B.0627, subdivision 
244.12  4, must meet applicable standards in Minnesota Rules, part 
244.13  9505.0335. 
244.14     (f) A county may use alternative care funds to purchase 
244.15  medical supplies and equipment without prior approval from the 
244.16  commissioner when:  (1) there is no other funding source; (2) 
244.17  the supplies and equipment are specified in the individual's 
244.18  care plan as medically necessary to enable the individual to 
244.19  remain in the community according to the criteria in Minnesota 
244.20  Rules, part 9505.0210, item A; and (3) the supplies and 
244.21  equipment represent an effective and appropriate use of 
244.22  alternative care funds.  A county may use alternative care funds 
244.23  to purchase supplies and equipment from a non-Medicaid certified 
244.24  vendor if the cost for the items is less than that of a Medicaid 
244.25  vendor.  A county is not required to contract with a provider of 
244.26  supplies and equipment if the monthly cost of the supplies and 
244.27  equipment is less than $250.  
244.28     (g) For purposes of this section, residential care services 
244.29  are services which are provided to individuals living in 
244.30  residential care homes.  Residential care homes are currently 
244.31  licensed as board and lodging establishments and are registered 
244.32  with the department of health as providing special 
244.33  services under section 157.17 and are not subject to 
244.34  registration under chapter 144D.  Residential care services are 
244.35  defined as "supportive services" and "health-related services."  
244.36  "Supportive services" means the provision of up to 24-hour 
245.1   supervision and oversight.  Supportive services includes:  (1) 
245.2   transportation, when provided by the residential care center 
245.3   home only; (2) socialization, when socialization is part of the 
245.4   plan of care, has specific goals and outcomes established, and 
245.5   is not diversional or recreational in nature; (3) assisting 
245.6   clients in setting up meetings and appointments; (4) assisting 
245.7   clients in setting up medical and social services; (5) providing 
245.8   assistance with personal laundry, such as carrying the client's 
245.9   laundry to the laundry room.  Assistance with personal laundry 
245.10  does not include any laundry, such as bed linen, that is 
245.11  included in the room and board rate.  "Health-related services" 
245.12  are limited to minimal assistance with dressing, grooming, and 
245.13  bathing and providing reminders to residents to take medications 
245.14  that are self-administered or providing storage for medications, 
245.15  if requested.  Individuals receiving residential care services 
245.16  cannot receive homemaking services funded under this section.  
245.17     (h) (g) For the purposes of this section, "assisted living" 
245.18  refers to supportive services provided by a single vendor to 
245.19  clients who reside in the same apartment building of three or 
245.20  more units which are not subject to registration under chapter 
245.21  144D and are licensed by the department of health as a class A 
245.22  home care provider or a class E home care provider.  Assisted 
245.23  living services are defined as up to 24-hour supervision, and 
245.24  oversight, supportive services as defined in clause (1), 
245.25  individualized home care aide tasks as defined in clause (2), 
245.26  and individualized home management tasks as defined in clause 
245.27  (3) provided to residents of a residential center living in 
245.28  their units or apartments with a full kitchen and bathroom.  A 
245.29  full kitchen includes a stove, oven, refrigerator, food 
245.30  preparation counter space, and a kitchen utensil storage 
245.31  compartment.  Assisted living services must be provided by the 
245.32  management of the residential center or by providers under 
245.33  contract with the management or with the county. 
245.34     (1) Supportive services include:  
245.35     (i) socialization, when socialization is part of the plan 
245.36  of care, has specific goals and outcomes established, and is not 
246.1   diversional or recreational in nature; 
246.2      (ii) assisting clients in setting up meetings and 
246.3   appointments; and 
246.4      (iii) providing transportation, when provided by the 
246.5   residential center only.  
246.6      Individuals receiving assisted living services will not 
246.7   receive both assisted living services and homemaking services.  
246.8   Individualized means services are chosen and designed 
246.9   specifically for each resident's needs, rather than provided or 
246.10  offered to all residents regardless of their illnesses, 
246.11  disabilities, or physical conditions.  
246.12     (2) Home care aide tasks means:  
246.13     (i) preparing modified diets, such as diabetic or low 
246.14  sodium diets; 
246.15     (ii) reminding residents to take regularly scheduled 
246.16  medications or to perform exercises; 
246.17     (iii) household chores in the presence of technically 
246.18  sophisticated medical equipment or episodes of acute illness or 
246.19  infectious disease; 
246.20     (iv) household chores when the resident's care requires the 
246.21  prevention of exposure to infectious disease or containment of 
246.22  infectious disease; and 
246.23     (v) assisting with dressing, oral hygiene, hair care, 
246.24  grooming, and bathing, if the resident is ambulatory, and if the 
246.25  resident has no serious acute illness or infectious disease.  
246.26  Oral hygiene means care of teeth, gums, and oral prosthetic 
246.27  devices.  
246.28     (3) Home management tasks means:  
246.29     (i) housekeeping; 
246.30     (ii) laundry; 
246.31     (iii) preparation of regular snacks and meals; and 
246.32     (iv) shopping.  
246.33     Individuals receiving assisted living services shall not 
246.34  receive both assisted living services and homemaking services.  
246.35  Individualized means services are chosen and designed 
246.36  specifically for each resident's needs, rather than provided or 
247.1   offered to all residents regardless of their illnesses, 
247.2   disabilities, or physical conditions.  Assisted living services 
247.3   as defined in this section shall not be authorized in boarding 
247.4   and lodging establishments licensed according to sections 
247.5   157.011 and 157.15 to 157.22. 
247.6      (i) (h) For establishments registered under chapter 144D, 
247.7   assisted living services under this section means either the 
247.8   services described and licensed in paragraph (g) and delivered 
247.9   by a class E home care provider licensed by the department of 
247.10  health or the services described under section 144A.4605 and 
247.11  delivered by an assisted living home care provider or a class A 
247.12  home care provider licensed by the commissioner of health. 
247.13     (j) For the purposes of this section, reimbursement (i) 
247.14  Payment for assisted living services and residential care 
247.15  services shall be a monthly rate negotiated and authorized by 
247.16  the county agency based on an individualized service plan for 
247.17  each resident and may not cover direct rent or food costs.  The 
247.18  rate 
247.19     (1) The individualized monthly negotiated payment for 
247.20  assisted living services as described in paragraph (g) or (h), 
247.21  and residential care services as described in paragraph (f), 
247.22  shall not exceed the nonfederal share in effect on July 1 of the 
247.23  state fiscal year for which the rate limit is being calculated 
247.24  of the greater of either the statewide or any of the geographic 
247.25  groups' weighted average monthly medical assistance nursing 
247.26  facility payment rate of the case mix resident class to which 
247.27  the 180-day alternative care eligible client would be assigned 
247.28  under Minnesota Rules, parts 9549.0050 to 9549.0059, unless the 
247.29  less the maintenance needs allowance as described in subdivision 
247.30  1d, paragraph (a), until the first day of the state fiscal year 
247.31  in which a resident assessment system, under section 256B.437, 
247.32  of nursing home rate determination is implemented.  Effective on 
247.33  the first day of the state fiscal year in which a resident 
247.34  assessment system, under section 256B.437, of nursing home rate 
247.35  determination is implemented and the first day of each 
247.36  subsequent state fiscal year, the individualized monthly 
248.1   negotiated payment for the services described in this clause 
248.2   shall not exceed the limit described in this clause which was in 
248.3   effect on the last day of the previous state fiscal year and 
248.4   which has been adjusted by the greater of any legislatively 
248.5   adopted home and community-based services cost-of-living 
248.6   percentage increase or any legislatively adopted statewide 
248.7   percent rate increase for nursing facilities. 
248.8      (2) The individualized monthly negotiated payment for 
248.9   assisted living services are provided by a home care described 
248.10  under section 144A.4605 and delivered by a provider licensed by 
248.11  the department of health as a class A home care provider or an 
248.12  assisted living home care provider and are provided in a 
248.13  building that is registered as a housing with services 
248.14  establishment under chapter 144D and that provides 24-hour 
248.15  supervision in combination with the payment for other 
248.16  alternative care services, including case management, must not 
248.17  exceed the limit specified in subdivision 4, paragraph (a), 
248.18  clause (6). 
248.19     (k) For purposes of this section, companion services are 
248.20  defined as nonmedical care, supervision and oversight, provided 
248.21  to a functionally impaired adult.  Companions may assist the 
248.22  individual with such tasks as meal preparation, laundry and 
248.23  shopping, but do not perform these activities as discrete 
248.24  services.  The provision of companion services does not entail 
248.25  hands-on medical care.  Providers may also perform light 
248.26  housekeeping tasks which are incidental to the care and 
248.27  supervision of the recipient.  This service must be approved by 
248.28  the case manager as part of the care plan.  Companion services 
248.29  must be provided by individuals or organizations who are under 
248.30  contract with the local agency to provide the service.  Any 
248.31  person related to the waiver recipient by blood, marriage or 
248.32  adoption cannot be reimbursed under this service.  Persons 
248.33  providing companion services will be monitored by the case 
248.34  manager. 
248.35     (l) For purposes of this section, training for direct 
248.36  informal caregivers is defined as a classroom or home course of 
249.1   instruction which may include:  transfer and lifting skills, 
249.2   nutrition, personal and physical cares, home safety in a home 
249.3   environment, stress reduction and management, behavioral 
249.4   management, long-term care decision making, care coordination 
249.5   and family dynamics.  The training is provided to an informal 
249.6   unpaid caregiver of a 180-day eligible client which enables the 
249.7   caregiver to deliver care in a home setting with high levels of 
249.8   quality.  The training must be approved by the case manager as 
249.9   part of the individual care plan.  Individuals, agencies, and 
249.10  educational facilities which provide caregiver training and 
249.11  education will be monitored by the case manager. 
249.12     (m) (j) A county agency may make payment from their 
249.13  alternative care program allocation for "other services" 
249.14  provided to an alternative care program recipient if those 
249.15  services prevent, shorten, or delay institutionalization.  These 
249.16  services may which include use of "discretionary funds" for 
249.17  services that are not otherwise defined in this section and 
249.18  direct cash payments to the recipient client for the purpose of 
249.19  purchasing the recipient's services.  The following provisions 
249.20  apply to payments under this paragraph: 
249.21     (1) a cash payment to a client under this provision cannot 
249.22  exceed 80 percent of the monthly payment limit for that client 
249.23  as specified in subdivision 4, paragraph (a), clause (7) (6); 
249.24     (2) a county may not approve any cash payment for a client 
249.25  who meets either of the following: 
249.26     (i) has been assessed as having a dependency in 
249.27  orientation, unless the client has an authorized 
249.28  representative under section 256.476, subdivision 2, paragraph 
249.29  (g), or for a client who.  An "authorized representative" means 
249.30  an individual who is at least 18 years of age and is designated 
249.31  by the person or the person's legal representative to act on the 
249.32  person's behalf.  This individual may be a family member, 
249.33  guardian, representative payee, or other individual designated 
249.34  by the person or the person's legal representative, if any, to 
249.35  assist in purchasing and arranging for supports; or 
249.36     (ii) is concurrently receiving adult foster care, 
250.1   residential care, or assisted living services; 
250.2      (3) any service approved under this section must be a 
250.3   service which meets the purpose and goals of the program as 
250.4   listed in subdivision 1; 
250.5      (4) cash payments must also meet the criteria of and are 
250.6   governed by the procedures and liability protection established 
250.7   in section 256.476, subdivision 4, paragraphs (b) through (h), 
250.8   and recipients of cash grants must meet the requirements in 
250.9   section 256.476, subdivision 10; and cash payments to a person 
250.10  or a person's family will be provided through a monthly payment 
250.11  and be in the form of cash, voucher, or direct county payment to 
250.12  vendor.  Fees or premiums assessed to the person for eligibility 
250.13  for health and human services are not reimbursable through this 
250.14  service option.  Services and goods purchased through cash 
250.15  payments must be identified in the person's individualized care 
250.16  plan and must meet all of the following criteria: 
250.17     (i) they must be over and above the normal cost of caring 
250.18  for the person if the person did not have functional 
250.19  limitations; 
250.20     (ii) they must be directly attributable to the person's 
250.21  functional limitations; 
250.22     (iii) they must have the potential to be effective at 
250.23  meeting the goals of the program; 
250.24     (iv) they must be consistent with the needs identified in 
250.25  the individualized service plan.  The service plan shall specify 
250.26  the needs of the person and family, the form and amount of 
250.27  payment, the items and services to be reimbursed, and the 
250.28  arrangements for management of the individual grant; and 
250.29     (v) the person, the person's family, or the legal 
250.30  representative shall be provided sufficient information to 
250.31  ensure an informed choice of alternatives.  The local agency 
250.32  shall document this information in the person's care plan, 
250.33  including the type and level of expenditures to be reimbursed; 
250.34     (4) the county, lead agency under contract, or tribal 
250.35  government under contract to administer the alternative care 
250.36  program shall not be liable for damages, injuries, or 
251.1   liabilities sustained through the purchase of direct supports or 
251.2   goods by the person, the person's family, or the authorized 
251.3   representative with funds received through the cash payments 
251.4   under this section.  Liabilities include, but are not limited 
251.5   to, workers' compensation, the Federal Insurance Contributions 
251.6   Act (FICA), or the Federal Unemployment Tax Act (FUTA); 
251.7      (5) persons receiving grants under this section shall have 
251.8   the following responsibilities: 
251.9      (i) spend the grant money in a manner consistent with their 
251.10  individualized service plan with the local agency; 
251.11     (ii) notify the local agency of any necessary changes in 
251.12  the grant-expenditures; 
251.13     (iii) arrange and pay for supports; and 
251.14     (iv) inform the local agency of areas where they have 
251.15  experienced difficulty securing or maintaining supports; and 
251.16     (5) (6) the county shall report client outcomes, services, 
251.17  and costs under this paragraph in a manner prescribed by the 
251.18  commissioner. 
251.19     (k) Upon implementation of direct cash payments to clients 
251.20  under this section, any person determined eligible for the 
251.21  alternative care program who chooses a cash payment approved by 
251.22  the county agency shall receive the cash payment under this 
251.23  section and not under section 256.476 unless the person was 
251.24  receiving a consumer support grant under section 256.476 before 
251.25  implementation of direct cash payments under this section. 
251.26     Sec. 20.  Minnesota Statutes 2000, section 256B.0913, 
251.27  subdivision 6, is amended to read: 
251.28     Subd. 6.  [ALTERNATIVE CARE PROGRAM ADMINISTRATION.] The 
251.29  alternative care program is administered by the county agency.  
251.30  This agency is the lead agency responsible for the local 
251.31  administration of the alternative care program as described in 
251.32  this section.  However, it may contract with the public health 
251.33  nursing service to be the lead agency.  The commissioner may 
251.34  contract with federally recognized Indian tribes with a 
251.35  reservation in Minnesota to serve as the lead agency responsible 
251.36  for the local administration of the alternative care program as 
252.1   described in the contract. 
252.2      Sec. 21.  Minnesota Statutes 2000, section 256B.0913, 
252.3   subdivision 7, is amended to read: 
252.4      Subd. 7.  [CASE MANAGEMENT.] Providers of case management 
252.5   services for persons receiving services funded by the 
252.6   alternative care program must meet the qualification 
252.7   requirements and standards specified in section 256B.0915, 
252.8   subdivision 1b.  The case manager must ensure the health and 
252.9   safety of the individual client and not approve alternative care 
252.10  funding for a client in any setting in which the case manager 
252.11  cannot reasonably ensure the client's health and safety.  The 
252.12  case manager is responsible for the cost-effectiveness of the 
252.13  alternative care individual care plan and must not approve any 
252.14  care plan in which the cost of services funded by alternative 
252.15  care and client contributions exceeds the limit specified in 
252.16  section 256B.0915, subdivision 3, paragraph (b).  The county may 
252.17  allow a case manager employed by the county to delegate certain 
252.18  aspects of the case management activity to another individual 
252.19  employed by the county provided there is oversight of the 
252.20  individual by the case manager.  The case manager may not 
252.21  delegate those aspects which require professional judgment 
252.22  including assessments, reassessments, and care plan development. 
252.23     Sec. 22.  Minnesota Statutes 2000, section 256B.0913, 
252.24  subdivision 8, is amended to read: 
252.25     Subd. 8.  [REQUIREMENTS FOR INDIVIDUAL CARE PLAN.] (a) The 
252.26  case manager shall implement the plan of care for each 180-day 
252.27  eligible alternative care client and ensure that a client's 
252.28  service needs and eligibility are reassessed at least every 12 
252.29  months.  The plan shall include any services prescribed by the 
252.30  individual's attending physician as necessary to allow the 
252.31  individual to remain in a community setting.  In developing the 
252.32  individual's care plan, the case manager should include the use 
252.33  of volunteers from families and neighbors, religious 
252.34  organizations, social clubs, and civic and service organizations 
252.35  to support the formal home care services.  The county shall be 
252.36  held harmless for damages or injuries sustained through the use 
253.1   of volunteers under this subdivision including workers' 
253.2   compensation liability.  The lead agency shall provide 
253.3   documentation to the commissioner verifying that the 
253.4   individual's alternative care is not available at that time 
253.5   through any other public assistance or service program.  The 
253.6   lead agency shall provide documentation in each individual's 
253.7   plan of care and, if requested, to the commissioner that the 
253.8   most cost-effective alternatives available have been offered to 
253.9   the individual and that the individual was free to choose among 
253.10  available qualified providers, both public and private.  The 
253.11  case manager must give the individual a ten-day written notice 
253.12  of any decrease in or termination of alternative care services. 
253.13     (b) If the county administering alternative care services 
253.14  is different than the county of financial responsibility, the 
253.15  care plan may be implemented without the approval of the county 
253.16  of financial responsibility. 
253.17     Sec. 23.  Minnesota Statutes 2000, section 256B.0913, 
253.18  subdivision 9, is amended to read: 
253.19     Subd. 9.  [CONTRACTING PROVISIONS FOR PROVIDERS.] The lead 
253.20  agency shall document to the commissioner that the agency made 
253.21  reasonable efforts to inform potential providers of the 
253.22  anticipated need for services under the alternative care program 
253.23  or waiver programs under sections 256B.0915 and 256B.49, 
253.24  including a minimum of 14 days' written advance notice of the 
253.25  opportunity to be selected as a service provider and an annual 
253.26  public meeting with providers to explain and review the criteria 
253.27  for selection.  The lead agency shall also document to the 
253.28  commissioner that the agency allowed potential providers an 
253.29  opportunity to be selected to contract with the county agency.  
253.30  Funds reimbursed to counties under this subdivision Alternative 
253.31  care funds paid to service providers are subject to audit by the 
253.32  commissioner for fiscal and utilization control.  
253.33     The lead agency must select providers for contracts or 
253.34  agreements using the following criteria and other criteria 
253.35  established by the county: 
253.36     (1) the need for the particular services offered by the 
254.1   provider; 
254.2      (2) the population to be served, including the number of 
254.3   clients, the length of time services will be provided, and the 
254.4   medical condition of clients; 
254.5      (3) the geographic area to be served; 
254.6      (4) quality assurance methods, including appropriate 
254.7   licensure, certification, or standards, and supervision of 
254.8   employees when needed; 
254.9      (5) rates for each service and unit of service exclusive of 
254.10  county administrative costs; 
254.11     (6) evaluation of services previously delivered by the 
254.12  provider; and 
254.13     (7) contract or agreement conditions, including billing 
254.14  requirements, cancellation, and indemnification. 
254.15     The county must evaluate its own agency services under the 
254.16  criteria established for other providers.  The county shall 
254.17  provide a written statement of the reasons for not selecting 
254.18  providers. 
254.19     Sec. 24.  Minnesota Statutes 2000, section 256B.0913, 
254.20  subdivision 10, is amended to read: 
254.21     Subd. 10.  [ALLOCATION FORMULA.] (a) The alternative care 
254.22  appropriation for fiscal years 1992 and beyond shall cover 
254.23  only 180-day alternative care eligible clients.  Prior to July 1 
254.24  of each year, the commissioner shall allocate to county agencies 
254.25  the state funds available for alternative care for persons 
254.26  eligible under subdivision 2. 
254.27     (b) Prior to July 1 of each year, the commissioner shall 
254.28  allocate to county agencies the state funds available for 
254.29  alternative care for persons eligible under subdivision 2.  The 
254.30  allocation for fiscal year 1992 shall be calculated using a base 
254.31  that is adjusted to exclude the medical assistance share of 
254.32  alternative care expenditures.  The adjusted base is calculated 
254.33  by multiplying each county's allocation for fiscal year 1991 by 
254.34  the percentage of county alternative care expenditures for 
254.35  180-day eligible clients.  The percentage is determined based on 
254.36  expenditures for services rendered in fiscal year 1989 or 
255.1   calendar year 1989, whichever is greater.  The adjusted base for 
255.2   each county is the county's current fiscal year base allocation 
255.3   plus any targeted funds approved during the current fiscal 
255.4   year.  Calculations for paragraphs (c) and (d) are to be made as 
255.5   follows:  for each county, the determination of alternative care 
255.6   program expenditures shall be based on payments for services 
255.7   rendered from April 1 through March 31 in the base year, to the 
255.8   extent that claims have been submitted and paid by June 1 of 
255.9   that year.  
255.10     (c) If the county alternative care program expenditures for 
255.11  180-day eligible clients as defined in paragraph (b) are 95 
255.12  percent or more of its the county's adjusted base allocation, 
255.13  the allocation for the next fiscal year is 100 percent of the 
255.14  adjusted base, plus inflation to the extent that inflation is 
255.15  included in the state budget. 
255.16     (d) If the county alternative care program expenditures for 
255.17  180-day eligible clients as defined in paragraph (b) are less 
255.18  than 95 percent of its the county's adjusted base allocation, 
255.19  the allocation for the next fiscal year is the adjusted base 
255.20  allocation less the amount of unspent funds below the 95 percent 
255.21  level. 
255.22     (e) For fiscal year 1992 only, a county may receive an 
255.23  increased allocation if annualized service costs for the month 
255.24  of May 1991 for 180-day eligible clients are greater than the 
255.25  allocation otherwise determined.  A county may apply for this 
255.26  increase by reporting projected expenditures for May to the 
255.27  commissioner by June 1, 1991.  The amount of the allocation may 
255.28  exceed the amount calculated in paragraph (b).  The projected 
255.29  expenditures for May must be based on actual 180-day eligible 
255.30  client caseload and the individual cost of clients' care plans.  
255.31  If a county does not report its expenditures for May, the amount 
255.32  in paragraph (c) or (d) shall be used. 
255.33     (f) Calculations for paragraphs (c) and (d) are to be made 
255.34  as follows:  for each county, the determination of expenditures 
255.35  shall be based on payments for services rendered from April 1 
255.36  through March 31 in the base year, to the extent that claims 
256.1   have been submitted by June 1 of that year.  Calculations for 
256.2   paragraphs (c) and (d) must also include the funds transferred 
256.3   to the consumer support grant program for clients who have 
256.4   transferred to that program from April 1 through March 31 in the 
256.5   base year.  
256.6      (g) For the biennium ending June 30, 2001, the allocation 
256.7   of state funds to county agencies shall be calculated as 
256.8   described in paragraphs (c) and (d).  If the annual legislative 
256.9   appropriation for the alternative care program is inadequate to 
256.10  fund the combined county allocations for fiscal year 2000 or 
256.11  2001 a biennium, the commissioner shall distribute to each 
256.12  county the entire annual appropriation as that county's 
256.13  percentage of the computed base as calculated in paragraph 
256.14  (f) paragraphs (c) and (d). 
256.15     Sec. 25.  Minnesota Statutes 2000, section 256B.0913, 
256.16  subdivision 11, is amended to read: 
256.17     Subd. 11.  [TARGETED FUNDING.] (a) The purpose of targeted 
256.18  funding is to make additional money available to counties with 
256.19  the greatest need.  Targeted funds are not intended to be 
256.20  distributed equitably among all counties, but rather, allocated 
256.21  to those with long-term care strategies that meet state goals. 
256.22     (b) The funds available for targeted funding shall be the 
256.23  total appropriation for each fiscal year minus county 
256.24  allocations determined under subdivision 10 as adjusted for any 
256.25  inflation increases provided in appropriations for the biennium. 
256.26     (c) The commissioner shall allocate targeted funds to 
256.27  counties that demonstrate to the satisfaction of the 
256.28  commissioner that they have developed feasible plans to increase 
256.29  alternative care spending.  In making targeted funding 
256.30  allocations, the commissioner shall use the following priorities:
256.31     (1) counties that received a lower allocation in fiscal 
256.32  year 1991 than in fiscal year 1990.  Counties remain in this 
256.33  priority until they have been restored to their fiscal year 1990 
256.34  level plus inflation; 
256.35     (2) counties that sustain a base allocation reduction for 
256.36  failure to spend 95 percent of the allocation if they 
257.1   demonstrate that the base reduction should be restored; 
257.2      (3) counties that propose projects to divert community 
257.3   residents from nursing home placement or convert nursing home 
257.4   residents to community living; and 
257.5      (4) counties that can otherwise justify program growth by 
257.6   demonstrating the existence of waiting lists, demographically 
257.7   justified needs, or other unmet needs. 
257.8      (d) Counties that would receive targeted funds according to 
257.9   paragraph (c) must demonstrate to the commissioner's 
257.10  satisfaction that the funds would be appropriately spent by 
257.11  showing how the funds would be used to further the state's 
257.12  alternative care goals as described in subdivision 1, and that 
257.13  the county has the administrative and service delivery 
257.14  capability to use them.  
257.15     (e) The commissioner shall request applications by June 1 
257.16  each year, for county agencies to apply for targeted funds by 
257.17  November 1 of each year.  The counties selected for targeted 
257.18  funds shall be notified of the amount of their additional 
257.19  funding by August 1 of each year.  Targeted funds allocated to a 
257.20  county agency in one year shall be treated as part of the 
257.21  county's base allocation for that year in determining 
257.22  allocations for subsequent years.  No reallocations between 
257.23  counties shall be made. 
257.24     (f) The allocation for each year after fiscal year 1992 
257.25  shall be determined using the previous fiscal year's allocation, 
257.26  including any targeted funds, as the base and then applying the 
257.27  criteria under subdivision 10, paragraphs (c), (d), and (f), to 
257.28  the current year's expenditures. 
257.29     Sec. 26.  Minnesota Statutes 2000, section 256B.0913, 
257.30  subdivision 12, is amended to read: 
257.31     Subd. 12.  [CLIENT PREMIUMS.] (a) A premium is required for 
257.32  all 180-day alternative care eligible clients to help pay for 
257.33  the cost of participating in the program.  The amount of the 
257.34  premium for the alternative care client shall be determined as 
257.35  follows: 
257.36     (1) when the alternative care client's income less 
258.1   recurring and predictable medical expenses is greater than the 
258.2   medical assistance income standard recipient's maintenance needs 
258.3   allowance as defined in section 256B.0915, subdivision 1d, 
258.4   paragraph (a), but less than 150 percent of the federal poverty 
258.5   guideline effective on July 1 of the state fiscal year in which 
258.6   the premium is being computed, and total assets are less than 
258.7   $10,000, the fee is zero; 
258.8      (2) when the alternative care client's income less 
258.9   recurring and predictable medical expenses is greater than 150 
258.10  percent of the federal poverty guideline effective on July 1 of 
258.11  the state fiscal year in which the premium is being computed, 
258.12  and total assets are less than $10,000, the fee is 25 percent of 
258.13  the cost of alternative care services or the difference between 
258.14  150 percent of the federal poverty guideline effective on July 1 
258.15  of the state fiscal year in which the premium is being computed 
258.16  and the client's income less recurring and predictable medical 
258.17  expenses, whichever is less; and 
258.18     (3) when the alternative care client's total assets are 
258.19  greater than $10,000, the fee is 25 percent of the cost of 
258.20  alternative care services.  
258.21     For married persons, total assets are defined as the total 
258.22  marital assets less the estimated community spouse asset 
258.23  allowance, under section 256B.059, if applicable.  For married 
258.24  persons, total income is defined as the client's income less the 
258.25  monthly spousal allotment, under section 256B.058. 
258.26     All alternative care services except case management shall 
258.27  be included in the estimated costs for the purpose of 
258.28  determining 25 percent of the costs. 
258.29     The monthly premium shall be calculated based on the cost 
258.30  of the first full month of alternative care services and shall 
258.31  continue unaltered until the next reassessment is completed or 
258.32  at the end of 12 months, whichever comes first.  Premiums are 
258.33  due and payable each month alternative care services are 
258.34  received unless the actual cost of the services is less than the 
258.35  premium. 
258.36     (b) The fee shall be waived by the commissioner when: 
259.1      (1) a person who is residing in a nursing facility is 
259.2   receiving case management only; 
259.3      (2) a person is applying for medical assistance; 
259.4      (3) a married couple is requesting an asset assessment 
259.5   under the spousal impoverishment provisions; 
259.6      (4) a person is a medical assistance recipient, but has 
259.7   been approved for alternative care-funded assisted living 
259.8   services; 
259.9      (5) a person is found eligible for alternative care, but is 
259.10  not yet receiving alternative care services; or 
259.11     (6) (5) a person's fee under paragraph (a) is less than $25.
259.12     (c) The county agency must record in the state's receivable 
259.13  system the client's assessed premium amount or the reason the 
259.14  premium has been waived.  The commissioner will bill and collect 
259.15  the premium from the client and forward the amounts collected to 
259.16  the commissioner in the manner and at the times prescribed by 
259.17  the commissioner.  Money collected must be deposited in the 
259.18  general fund and is appropriated to the commissioner for the 
259.19  alternative care program.  The client must supply the county 
259.20  with the client's social security number at the time of 
259.21  application.  If a client fails or refuses to pay the premium 
259.22  due, The county shall supply the commissioner with the client's 
259.23  social security number and other information the commissioner 
259.24  requires to collect the premium from the client.  The 
259.25  commissioner shall collect unpaid premiums using the Revenue 
259.26  Recapture Act in chapter 270A and other methods available to the 
259.27  commissioner.  The commissioner may require counties to inform 
259.28  clients of the collection procedures that may be used by the 
259.29  state if a premium is not paid.  
259.30     (d) The commissioner shall begin to adopt emergency or 
259.31  permanent rules governing client premiums within 30 days after 
259.32  July 1, 1991, including criteria for determining when services 
259.33  to a client must be terminated due to failure to pay a premium.  
259.34     Sec. 27.  Minnesota Statutes 2000, section 256B.0913, 
259.35  subdivision 13, is amended to read: 
259.36     Subd. 13.  [COUNTY BIENNIAL PLAN.] The county biennial plan 
260.1   for the preadmission screening program long-term care 
260.2   consultation under section 256B.0911, the alternative care 
260.3   program under this section, and waivers for the elderly under 
260.4   section 256B.0915, and waivers for the disabled under section 
260.5   256B.49, shall be incorporated into the biennial Community 
260.6   Social Services Act plan and shall meet the regulations and 
260.7   timelines of that plan.  This county biennial plan shall include:
260.8      (1) information on the administration of the preadmission 
260.9   screening program; 
260.10     (2) information on the administration of the home and 
260.11  community-based services waivers for the elderly under section 
260.12  256B.0915, and for the disabled under section 256B.49; and 
260.13     (3) information on the administration of the alternative 
260.14  care program. 
260.15     Sec. 28.  Minnesota Statutes 2000, section 256B.0913, 
260.16  subdivision 14, is amended to read: 
260.17     Subd. 14.  [REIMBURSEMENT PAYMENT AND RATE ADJUSTMENTS.] (a)
260.18  Reimbursement Payment for expenditures for the provided 
260.19  alternative care services as approved by the client's case 
260.20  manager shall be through the invoice processing procedures of 
260.21  the department's Medicaid Management Information System (MMIS).  
260.22  To receive reimbursement payment, the county or vendor must 
260.23  submit invoices within 12 months following the date of service.  
260.24  The county agency and its vendors under contract shall not be 
260.25  reimbursed for services which exceed the county allocation. 
260.26     (b) If a county collects less than 50 percent of the client 
260.27  premiums due under subdivision 12, the commissioner may withhold 
260.28  up to three percent of the county's final alternative care 
260.29  program allocation determined under subdivisions 10 and 11. 
260.30     (c) The county shall negotiate individual rates with 
260.31  vendors and may be reimbursed authorize service payment for 
260.32  actual costs up to the greater of the county's current approved 
260.33  rate or 60 percent of the maximum rate in fiscal year 1994 and 
260.34  65 percent of the maximum rate in fiscal year 1995 for each 
260.35  alternative care service.  Notwithstanding any other rule or 
260.36  statutory provision to the contrary, the commissioner shall not 
261.1   be authorized to increase rates by an annual inflation factor, 
261.2   unless so authorized by the legislature. 
261.3      (d) (c) On July 1, 1993, the commissioner shall increase 
261.4   the maximum rate for home delivered meals to $4.50 per meal.  To 
261.5   improve access to community services and eliminate payment 
261.6   disparities between the alternative care program and the elderly 
261.7   waiver program, the commissioner shall establish statewide 
261.8   maximum service rate limits and eliminate county-specific 
261.9   service rate limits. 
261.10     (1) Effective July 1, 2001, for service rate limits, except 
261.11  those in subdivision 5, paragraphs (d) and (j), the rate limit 
261.12  for each service shall be the greater of the alternative care 
261.13  statewide maximum rate or the elderly waiver statewide maximum 
261.14  rate. 
261.15     (2) Counties may negotiate individual service rates with 
261.16  vendors for actual costs up to the statewide maximum service 
261.17  rate limit. 
261.18     Sec. 29.  Minnesota Statutes 2000, section 256B.0915, 
261.19  subdivision 1d, is amended to read: 
261.20     Subd. 1d.  [POSTELIGIBILITY TREATMENT OF INCOME AND 
261.21  RESOURCES FOR ELDERLY WAIVER.] (a) Notwithstanding the 
261.22  provisions of section 256B.056, the commissioner shall make the 
261.23  following amendment to the medical assistance elderly waiver 
261.24  program effective July 1, 1999, or upon federal approval, 
261.25  whichever is later. 
261.26     A recipient's maintenance needs will be an amount equal to 
261.27  the Minnesota supplemental aid equivalent rate as defined in 
261.28  section 256I.03, subdivision 5, plus the medical assistance 
261.29  personal needs allowance as defined in section 256B.35, 
261.30  subdivision 1, paragraph (a), when applying posteligibility 
261.31  treatment of income rules to the gross income of elderly waiver 
261.32  recipients, except for individuals whose income is in excess of 
261.33  the special income standard according to Code of Federal 
261.34  Regulations, title 42, section 435.236.  Recipient maintenance 
261.35  needs shall be adjusted under this provision each July 1. 
261.36     (b) The commissioner of human services shall secure 
262.1   approval of additional elderly waiver slots sufficient to serve 
262.2   persons who will qualify under the revised income standard 
262.3   described in paragraph (a) before implementing section 
262.4   256B.0913, subdivision 16. 
262.5      (c) In implementing this subdivision, the commissioner 
262.6   shall consider allowing persons who would otherwise be eligible 
262.7   for the alternative care program but would qualify for the 
262.8   elderly waiver with a spenddown to remain on the alternative 
262.9   care program. 
262.10     Sec. 30.  Minnesota Statutes 2000, section 256B.0915, 
262.11  subdivision 3, is amended to read: 
262.12     Subd. 3.  [LIMITS OF CASES, RATES, REIMBURSEMENT PAYMENTS, 
262.13  AND FORECASTING.] (a) The number of medical assistance waiver 
262.14  recipients that a county may serve must be allocated according 
262.15  to the number of medical assistance waiver cases open on July 1 
262.16  of each fiscal year.  Additional recipients may be served with 
262.17  the approval of the commissioner. 
262.18     (b) The monthly limit for the cost of waivered services to 
262.19  an individual elderly waiver client shall be the statewide 
262.20  average payment weighted average monthly nursing facility rate 
262.21  of the case mix resident class to which the elderly waiver 
262.22  client would be assigned under the medical assistance case mix 
262.23  reimbursement system.  Minnesota Rules, parts 9549.0050 to 
262.24  9549.0059, less the recipient's maintenance needs allowance as 
262.25  described in subdivision 1d, paragraph (a), until the first day 
262.26  of the state fiscal year in which the resident assessment system 
262.27  as described in section 256B.437 for nursing home rate 
262.28  determination is implemented.  Effective on the first day of the 
262.29  state fiscal year in which the resident assessment system as 
262.30  described in section 256B.437 for nursing home rate 
262.31  determination is implemented and the first day of each 
262.32  subsequent state fiscal year, the monthly limit for the cost of 
262.33  waivered services to an individual elderly waiver client shall 
262.34  be the rate of the case mix resident class to which the waiver 
262.35  client would be assigned under Minnesota Rules, parts 9549.0050 
262.36  to 9549.0059, in effect on the last day of the previous state 
263.1   fiscal year, adjusted by the greater of any legislatively 
263.2   adopted home and community-based services cost-of-living 
263.3   percentage increase or any legislatively adopted statewide 
263.4   percent rate increase for nursing facilities. 
263.5      (c) If extended medical supplies and equipment or 
263.6   adaptations environmental modifications are or will be purchased 
263.7   for an elderly waiver services recipient client, the costs may 
263.8   be prorated on a monthly basis throughout the year in which they 
263.9   are purchased for up to 12 consecutive months beginning with the 
263.10  month of purchase.  If the monthly cost of a recipient's other 
263.11  waivered services exceeds the monthly limit established in this 
263.12  paragraph (b), the annual cost of the all waivered services 
263.13  shall be determined.  In this event, the annual cost of all 
263.14  waivered services shall not exceed 12 times the monthly 
263.15  limit calculated in this paragraph.  The statewide average 
263.16  payment rate is calculated by determining the statewide average 
263.17  monthly nursing home rate, effective July 1 of the fiscal year 
263.18  in which the cost is incurred, less the statewide average 
263.19  monthly income of nursing home residents who are age 65 or 
263.20  older, and who are medical assistance recipients in the month of 
263.21  March of the previous state fiscal year.  The annual cost 
263.22  divided by 12 of elderly or disabled waivered services of 
263.23  waivered services as described in paragraph (b).  
263.24     (d) For a person who is a nursing facility resident at the 
263.25  time of requesting a determination of eligibility for elderly or 
263.26  disabled waivered services shall be the greater of the monthly 
263.27  payment for:  (i), a monthly conversion limit for the cost of 
263.28  elderly waivered services may be requested.  The monthly 
263.29  conversion limit for the cost of elderly waiver services shall 
263.30  be the resident class assigned under Minnesota Rules, parts 
263.31  9549.0050 to 9549.0059, for that resident in the nursing 
263.32  facility where the resident currently resides; or (ii) the 
263.33  statewide average payment of the case mix resident class to 
263.34  which the resident would be assigned under the medical 
263.35  assistance case mix reimbursement system, provided that until 
263.36  July 1 of the state fiscal year in which the resident assessment 
264.1   system as described in section 256B.437 for nursing home rate 
264.2   determination is implemented.  Effective on July 1 of the state 
264.3   fiscal year in which the resident assessment system as described 
264.4   in section 256B.437 for nursing home rate determination is 
264.5   implemented, the monthly conversion limit for the cost of 
264.6   elderly waiver services shall be the per diem nursing facility 
264.7   rate as determined by the resident assessment system as 
264.8   described in section 256B.437 for that resident in the nursing 
264.9   facility where the resident currently resides multiplied by 365 
264.10  and divided by 12, less the recipient's maintenance needs 
264.11  allowance as described in subdivision 1d.  The limit under this 
264.12  clause only applies to persons discharged from a nursing 
264.13  facility after a minimum 30-day stay and found eligible for 
264.14  waivered services on or after July 1, 1997.  The following costs 
264.15  must be included in determining the total monthly costs for the 
264.16  waiver client: 
264.17     (1) cost of all waivered services, including extended 
264.18  medical supplies and equipment and environmental modifications; 
264.19  and 
264.20     (2) cost of skilled nursing, home health aide, and personal 
264.21  care services reimbursable by medical assistance.  
264.22     (c) (e) Medical assistance funding for skilled nursing 
264.23  services, private duty nursing, home health aide, and personal 
264.24  care services for waiver recipients must be approved by the case 
264.25  manager and included in the individual care plan. 
264.26     (d) For both the elderly waiver and the nursing facility 
264.27  disabled waiver, a county may purchase extended supplies and 
264.28  equipment without prior approval from the commissioner when 
264.29  there is no other funding source and the supplies and equipment 
264.30  are specified in the individual's care plan as medically 
264.31  necessary to enable the individual to remain in the community 
264.32  according to the criteria in Minnesota Rules, part 9505.0210, 
264.33  items A and B.  (f) A county is not required to contract with a 
264.34  provider of supplies and equipment if the monthly cost of the 
264.35  supplies and equipment is less than $250.  
264.36     (e) (g) The adult foster care daily rate for the elderly 
265.1   and disabled waivers shall be considered a difficulty of care 
265.2   payment and shall not include room and board.  The adult foster 
265.3   care service rate shall be negotiated between the county agency 
265.4   and the foster care provider.  The rate established under this 
265.5   section shall not exceed the state average monthly nursing home 
265.6   payment for the case mix classification to which the individual 
265.7   receiving foster care is assigned; the rate must allow for other 
265.8   waiver and medical assistance home care services to be 
265.9   authorized by the case manager.  The elderly waiver payment for 
265.10  the foster care service in combination with the payment for all 
265.11  other elderly waiver services, including case management, must 
265.12  not exceed the limit specified in paragraph (b). 
265.13     (f) The assisted living and residential care service rates 
265.14  for elderly and community alternatives for disabled individuals 
265.15  (CADI) waivers shall be made to the vendor as a monthly rate 
265.16  negotiated with the county agency based on an individualized 
265.17  service plan for each resident.  The rate shall not exceed the 
265.18  nonfederal share of the greater of either the statewide or any 
265.19  of the geographic groups' weighted average monthly medical 
265.20  assistance nursing facility payment rate of the case mix 
265.21  resident class to which the elderly or disabled client would be 
265.22  assigned under Minnesota Rules, parts 9549.0050 to 9549.0059, 
265.23  unless the services are provided by a home care provider 
265.24  licensed by the department of health and are provided in a 
265.25  building that is registered as a housing with services 
265.26  establishment under chapter 144D and that provides 24-hour 
265.27  supervision.  For alternative care assisted living projects 
265.28  established under Laws 1988, chapter 689, article 2, section 
265.29  256, monthly rates may not exceed 65 percent of the greater of 
265.30  either the statewide or any of the geographic groups' weighted 
265.31  average monthly medical assistance nursing facility payment rate 
265.32  for the case mix resident class to which the elderly or disabled 
265.33  client would be assigned under Minnesota Rules, parts 9549.0050 
265.34  to 9549.0059.  The rate may not cover direct rent or food costs. 
265.35     (h) Payment for assisted living service shall be a monthly 
265.36  rate negotiated and authorized by the county agency based on an 
266.1   individualized service plan for each resident and may not cover 
266.2   direct rent or food costs. 
266.3      (1) The individualized monthly negotiated payment for 
266.4   assisted living services as described in section 256B.0913, 
266.5   subdivision 5, paragraph (g) or (h), and residential care 
266.6   services as described in section 256B.0913, subdivision 5, 
266.7   paragraph (f), shall not exceed the nonfederal share, in effect 
266.8   on July 1 of the state fiscal year for which the rate limit is 
266.9   being calculated, of the greater of either the statewide or any 
266.10  of the geographic groups' weighted average monthly nursing 
266.11  facility rate of the case mix resident class to which the 
266.12  elderly waiver eligible client would be assigned under Minnesota 
266.13  Rules, parts 9549.0050 to 9549.0059, less the maintenance needs 
266.14  allowance as described in subdivision 1d, paragraph (a), until 
266.15  the July 1 of the state fiscal year in which the resident 
266.16  assessment system as described in section 256B.437 for nursing 
266.17  home rate determination is implemented.  Effective on July 1 of 
266.18  the state fiscal year in which the resident assessment system as 
266.19  described in section 256B.437 for nursing home rate 
266.20  determination is implemented and July 1 of each subsequent state 
266.21  fiscal year, the individualized monthly negotiated payment for 
266.22  the services described in this clause shall not exceed the limit 
266.23  described in this clause which was in effect on June 30 of the 
266.24  previous state fiscal year and which has been adjusted by the 
266.25  greater of any legislatively adopted home and community-based 
266.26  services cost-of-living percentage increase or any legislatively 
266.27  adopted statewide percent rate increase for nursing facilities. 
266.28     (2) The individualized monthly negotiated payment for 
266.29  assisted living services described in section 144A.4605 and 
266.30  delivered by a provider licensed by the department of health as 
266.31  a class A home care provider or an assisted living home care 
266.32  provider and provided in a building that is registered as a 
266.33  housing with services establishment under chapter 144D and that 
266.34  provides 24-hour supervision in combination with the payment for 
266.35  other elderly waiver services, including case management, must 
266.36  not exceed the limit specified in paragraph (b). 
267.1      (g) (i) The county shall negotiate individual service rates 
267.2   with vendors and may be reimbursed authorize payment for actual 
267.3   costs up to the greater of the county's current approved rate or 
267.4   60 percent of the maximum rate in fiscal year 1994 and 65 
267.5   percent of the maximum rate in fiscal year 1995 for each service 
267.6   within each program.  Persons or agencies must be employed by or 
267.7   under a contract with the county agency or the public health 
267.8   nursing agency of the local board of health in order to receive 
267.9   funding under the elderly waiver program, except as a provider 
267.10  of supplies and equipment when the monthly cost of the supplies 
267.11  and equipment is less than $250.  
267.12     (h) On July 1, 1993, the commissioner shall increase the 
267.13  maximum rate for home-delivered meals to $4.50 per meal. 
267.14     (i) (j) Reimbursement for the medical assistance recipients 
267.15  under the approved waiver shall be made from the medical 
267.16  assistance account through the invoice processing procedures of 
267.17  the department's Medicaid Management Information System (MMIS), 
267.18  only with the approval of the client's case manager.  The budget 
267.19  for the state share of the Medicaid expenditures shall be 
267.20  forecasted with the medical assistance budget, and shall be 
267.21  consistent with the approved waiver.  
267.22     (k) To improve access to community services and eliminate 
267.23  payment disparities between the alternative care program and the 
267.24  elderly waiver, the commissioner shall establish statewide 
267.25  maximum service rate limits and eliminate county-specific 
267.26  service rate limits. 
267.27     (1) Effective July 1, 2001, for service rate limits, except 
267.28  those described or defined in paragraphs (g) and (h), the rate 
267.29  limit for each service shall be the greater of the alternative 
267.30  care statewide maximum rate or the elderly waiver statewide 
267.31  maximum rate. 
267.32     (2) Counties may negotiate individual service rates with 
267.33  vendors for actual costs up to the statewide maximum service 
267.34  rate limit. 
267.35     (j) (l) Beginning July 1, 1991, the state shall reimburse 
267.36  counties according to the payment schedule in section 256.025 
268.1   for the county share of costs incurred under this subdivision on 
268.2   or after January 1, 1991, for individuals who are receiving 
268.3   medical assistance. 
268.4      (k) For the community alternatives for disabled individuals 
268.5   waiver, and nursing facility disabled waivers, county may use 
268.6   waiver funds for the cost of minor adaptations to a client's 
268.7   residence or vehicle without prior approval from the 
268.8   commissioner if there is no other source of funding and the 
268.9   adaptation: 
268.10     (1) is necessary to avoid institutionalization; 
268.11     (2) has no utility apart from the needs of the client; and 
268.12     (3) meets the criteria in Minnesota Rules, part 9505.0210, 
268.13  items A and B.  
268.14  For purposes of this subdivision, "residence" means the client's 
268.15  own home, the client's family residence, or a family foster 
268.16  home.  For purposes of this subdivision, "vehicle" means the 
268.17  client's vehicle, the client's family vehicle, or the client's 
268.18  family foster home vehicle. 
268.19     (l) The commissioner shall establish a maximum rate unit 
268.20  for baths provided by an adult day care provider that are not 
268.21  included in the provider's contractual daily or hourly rate. 
268.22  This maximum rate must equal the home health aide extended rate 
268.23  and shall be paid for baths provided to clients served under the 
268.24  elderly and disabled waivers. 
268.25     Sec. 31.  Minnesota Statutes 2000, section 256B.0915, 
268.26  subdivision 5, is amended to read: 
268.27     Subd. 5.  [REASSESSMENTS FOR WAIVER CLIENTS.] A 
268.28  reassessment of a client served under the elderly or disabled 
268.29  waiver must be conducted at least every 12 months and at other 
268.30  times when the case manager determines that there has been 
268.31  significant change in the client's functioning.  This may 
268.32  include instances where the client is discharged from the 
268.33  hospital.  
268.34     Sec. 32.  Minnesota Statutes 2000, section 256B.0917, 
268.35  subdivision 7, is amended to read: 
268.36     Subd. 7.  [CONTRACT.] (a) The commissioner of human 
269.1   services shall execute a contract with Living at Home/Block 
269.2   Nurse Program, Inc. (LAH/BN, Inc.).  The contract shall require 
269.3   LAH/BN, Inc. to: 
269.4      (1) develop criteria for and award grants to establish 
269.5   community-based organizations that will implement 
269.6   living-at-home/block nurse programs throughout the state; 
269.7      (2) award grants to enable current living-at-home/block 
269.8   nurse programs to continue to implement the combined 
269.9   living-at-home/block nurse program model; 
269.10     (3) serve as a state technical assistance center to assist 
269.11  and coordinate the living-at-home/block nurse programs 
269.12  established; and 
269.13     (4) manage contracts with individual living-at-home/block 
269.14  nurse programs. 
269.15     (b) The contract shall be effective July 1, 1997, and 
269.16  section 16B.17 shall not apply. 
269.17     Sec. 33.  [256B.0918] [DEVELOPMENT AND PURPOSE OF MEDICAL 
269.18  ASSISTANCE PILOT PROJECT ON SENIOR SERVICES.] 
269.19     Subdivision 1.  [DEVELOPMENT AND PURPOSE.] The commissioner 
269.20  of human services shall develop a medical assistance pilot 
269.21  project on senior services to determine how converting the 
269.22  delivery of housing, supportive services, and health care for 
269.23  seniors into a flexible voucher program will impact public 
269.24  expenditures for older adult service care and provide an 
269.25  alternative way to purchase services based on consumer choice. 
269.26     Subd. 2.  [FEDERAL WAIVER AUTHORITY.] The commissioner 
269.27  shall apply for any necessary federal waivers or approvals to 
269.28  implement this pilot project.  The commissioner shall submit the 
269.29  waiver request no later than April 15, 2002.  
269.30     Subd. 3.  [REPORT.] The commissioner shall report to the 
269.31  legislature by January 15, 2003, on approval of waivers 
269.32  requested.  Upon federal approval, the commissioner shall seek 
269.33  legislative authorization to implement the pilot project.  Once 
269.34  the pilot project is implemented, participating communities and 
269.35  the commissioner of human services shall collaborate to prepare 
269.36  and issue an annual report each December 1 to the appropriate 
270.1   committee chairs in the senate and house on:  (1) the use of 
270.2   state resources, including other funds leveraged for this 
270.3   initiative; (2) the status of individuals being served in the 
270.4   pilot project; and (3) the cost-effectiveness of the pilot 
270.5   project.  The commissioner shall provide data that may be needed 
270.6   to evaluate the pilot project to communities that request the 
270.7   data. 
270.8      Subd. 4.  [SUNSET.] This section sunsets June 30, 2008. 
270.9      Sec. 34.  [SERVICE ACCESS STUDY.] 
270.10     By February 15, 2002, the commissioner of human services 
270.11  shall submit to the legislature recommendations for creating 
270.12  coordinated service access at the county agency level for both 
270.13  publicly subsidized and nonsubsidized long-term care services 
270.14  and housing options.  The report must: 
270.15     (1) include a plan to coordinate public funding streams to 
270.16  allow low-income, privately paying consumers to purchase 
270.17  services through a sliding fee scale; and 
270.18     (2) evaluate the feasibility of statewide implementation, 
270.19  based upon an evaluation of public cost, consumer preferences 
270.20  and satisfaction, and other relevant factors. 
270.21     Sec. 35.  [RESPITE CARE.] 
270.22     The Minnesota board on aging shall report to the 
270.23  legislature by February 1, 2002, on the provision of in-home and 
270.24  out-of-home respite care services on a sliding scale basis under 
270.25  the federal Older Americans Act. 
270.26     Sec. 36.  [REPEALER.] 
270.27     Minnesota Statutes 2000, sections 256B.0911, subdivisions 
270.28  2, 2a, 4, 8, and 9; and 256B.0913, subdivisions 3, 15a, 15b, 
270.29  15c, and 16; Minnesota Rules, parts 9505.2390; 9505.2395; 
270.30  9505.2396; 9505.2400; 9505.2405; 9505.2410; 9505.2413; 
270.31  9505.2415; 9505.2420; 9505.2425; 9505,2426; 9505.2430; 
270.32  9505.2435; 9505.2440; 9505.2445; 9505.2450; 9505.2455; 
270.33  9505.2458; 9505.2460; 9505.2465; 9505.2470; 9505.2473; 
270.34  9505.2475; 9505.2480; 9505.2485; 9505.2486; 9505.2490; 
270.35  9505.2495; 9505.2496; and 9505.2500, are repealed. 
270.36                             ARTICLE 5 
271.1               LONG-TERM CARE REFORM AND REIMBURSEMENT 
271.2      Section 1.  [144.0724] [RESIDENT REIMBURSEMENT 
271.3   CLASSIFICATION.] 
271.4      Subdivision 1.  [RESIDENT REIMBURSEMENT 
271.5   CLASSIFICATIONS.] The commissioner of health shall establish 
271.6   resident reimbursement classifications based upon the 
271.7   assessments of residents of nursing homes and boarding care 
271.8   homes conducted under this section and according to section 
271.9   256B.437.  The reimbursement classifications established under 
271.10  this section shall be implemented after June 30, 2002, but no 
271.11  later than January 1, 2003. 
271.12     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
271.13  following terms have the meanings given. 
271.14     (a) [ASSESSMENT REFERENCE DATE.] "Assessment reference 
271.15  date" means the last day of the minimum data set observation 
271.16  period.  The date sets the designated endpoint of the common 
271.17  observation period, and all minimum data set items refer back in 
271.18  time from that point. 
271.19     (b) [CASE MIX INDEX.] "Case mix index" means the weighting 
271.20  factors assigned to the RUG-III classifications. 
271.21     (c) [INDEX MAXIMIZATION.] "Index maximization" means 
271.22  classifying a resident who could be assigned to more than one 
271.23  category, to the category with the highest case mix index. 
271.24     (d) [MINIMUM DATA SET.] "Minimum data set" means the 
271.25  assessment instrument specified by the Health Care Financing 
271.26  Administration and designated by the Minnesota department of 
271.27  health. 
271.28     (e) [REPRESENTATIVE.] "Representative" means a person who 
271.29  is the resident's guardian or conservator, the person authorized 
271.30  to pay the nursing home expenses of the resident, a 
271.31  representative of the nursing home ombudsman's office whose 
271.32  assistance has been requested, or any other individual 
271.33  designated by the resident. 
271.34     (f) [RESOURCE UTILIZATION GROUPS OR RUG.] "Resource 
271.35  utilization groups" or "RUG" means the system for grouping a 
271.36  nursing facility's residents according to their clinical and 
272.1   functional status identified in data supplied by the facility's 
272.2   minimum data set. 
272.3      Subd. 3.  [RESIDENT REIMBURSEMENT CLASSIFICATIONS.] (a) 
272.4   Resident reimbursement classifications shall be based on the 
272.5   minimum data set, version 2.0 assessment instrument, or its 
272.6   successor version mandated by the Health Care Financing 
272.7   Administration that nursing facilities are required to complete 
272.8   for all residents.  The commissioner of health shall establish 
272.9   resident classes according to the 34 group, resource utilization 
272.10  groups, version III or RUG-III model.  Resident classes must be 
272.11  established based on the individual items on the minimum data 
272.12  set and must be completed according to the facility manual for 
272.13  case mix classification issued by the Minnesota department of 
272.14  health.  The facility manual for case mix classification shall 
272.15  be drafted by the Minnesota department of health and presented 
272.16  to the chairs of health and human services legislative 
272.17  committees by December 31, 2001. 
272.18     (b) Each resident must be classified based on the 
272.19  information from the minimum data set according to general 
272.20  domains in clauses (1) to (7): 
272.21     (1) extensive services where a resident requires 
272.22  intravenous feeding or medications, suctioning, tracheostomy 
272.23  care, or is on a ventilator or respirator; 
272.24     (2) rehabilitation where a resident requires physical, 
272.25  occupational, or speech therapy; 
272.26     (3) special care where a resident has cerebral palsy; 
272.27  quadriplegia; multiple sclerosis; pressure ulcers; fever with 
272.28  vomiting, weight loss, or dehydration; tube feeding and aphasia; 
272.29  or is receiving radiation therapy; 
272.30     (4) clinically complex status where a resident has burns, 
272.31  coma, septicemia, pneumonia, internal bleeding, chemotherapy, 
272.32  wounds, kidney failure, urinary tract infections, oxygen, or 
272.33  transfusions; 
272.34     (5) impaired cognition where a resident has poor cognitive 
272.35  performance; 
272.36     (6) behavior problems where a resident exhibits wandering, 
273.1   has hallucinations, or is physically or verbally abusive toward 
273.2   others, unless the resident's other condition would place the 
273.3   resident in other categories; and 
273.4      (7) reduced physical functioning where a resident has no 
273.5   special clinical conditions. 
273.6      (c) The commissioner of health shall establish resident 
273.7   classification according to a 34 group model based on the 
273.8   information on the minimum data set and within the general 
273.9   domains listed in paragraph (b), clauses (1) to (7).  Detailed 
273.10  descriptions of each resource utilization group shall be defined 
273.11  in the facility manual for case mix classification issued by the 
273.12  Minnesota department of health.  The 34 groups are described as 
273.13  follows: 
273.14     (1) SE3:  requires four or five extensive services; 
273.15     (2) SE2:  requires two or three extensive services; 
273.16     (3) SE1:  requires one extensive service; 
273.17     (4) RAD:  requires rehabilitation services and is dependent 
273.18  in activity of daily living (ADL) at a count of 17 or 18; 
273.19     (5) RAC:  requires rehabilitation services and ADL count is 
273.20  14 to 16; 
273.21     (6) RAB:  requires rehabilitation services and ADL count is 
273.22  ten to 13; 
273.23     (7) RAA:  requires rehabilitation services and ADL count is 
273.24  four to nine; 
273.25     (8) SSC:  requires special care and ADL count is 17 or 18; 
273.26     (9) SSB:  requires special care and ADL count is 15 or 16; 
273.27     (10) SSA:  requires special care and ADL count is seven to 
273.28  14; 
273.29     (11) CC2:  clinically complex with depression and ADL count 
273.30  is 17 or 18; 
273.31     (12) CC1:  clinically complex with no depression and ADL 
273.32  count is 17 or 18; 
273.33     (13) CB2:  clinically complex with depression and ADL count 
273.34  is 12 to 16; 
273.35     (14) CB1:  clinically complex with no depression and ADL 
273.36  count is 12 to 16; 
274.1      (15) CA2:  clinically complex with depression and ADL count 
274.2   is four to 11; 
274.3      (16) CA1:  clinically complex with no depression and ADL 
274.4   count is four to 11; 
274.5      (17) IB2:  impaired cognition with nursing rehabilitation 
274.6   and ADL count is six to ten; 
274.7      (18) IB1:  impaired cognition with no nursing 
274.8   rehabilitation and ADL count is six to ten; 
274.9      (19) IA2:  impaired cognition with nursing rehabilitation 
274.10  and ADL count is four or five; 
274.11     (20) IA1:  impaired cognition with no nursing 
274.12  rehabilitation and ADL count is four or five; 
274.13     (21) BB2:  behavior problems with nursing rehabilitation 
274.14  and ADL count is six to ten; 
274.15     (22) BB1:  behavior problems with no nursing rehabilitation 
274.16  and ADL count is six to ten; 
274.17     (23) BA2:  behavior problems with nursing rehabilitation 
274.18  and ADL count is four to five; 
274.19     (24) BA1:  behavior problems with no nursing rehabilitation 
274.20  and ADL count is four to five; 
274.21     (25) PE2:  reduced physical functioning with nursing 
274.22  rehabilitation and ADL count is 16 to 18; 
274.23     (26) PE1:  reduced physical functioning with no nursing 
274.24  rehabilitation and ADL count is 16 to 18; 
274.25     (27) PD2:  reduced physical functioning with nursing 
274.26  rehabilitation and ADL count is 11 to 15; 
274.27     (28) PD1:  reduced physical functioning with no nursing 
274.28  rehabilitation and ADL count is 11 to 15; 
274.29     (29) PC2:  reduced physical functioning with nursing 
274.30  rehabilitation and ADL count is nine or ten; 
274.31     (30) PC1:  reduced physical functioning with no nursing 
274.32  rehabilitation and ADL count is nine or ten; 
274.33     (31) PB2:  reduced physical functioning with nursing 
274.34  rehabilitation and ADL count is six to eight; 
274.35     (32) PB1:  reduced physical functioning with no nursing 
274.36  rehabilitation and ADL count is six to eight; 
275.1      (33) PA2:  reduced physical functioning with nursing 
275.2   rehabilitation and ADL count is four or five; and 
275.3      (34) PA1:  reduced physical functioning with no nursing 
275.4   rehabilitation and ADL count is four or five. 
275.5      Subd. 4.  [RESIDENT ASSESSMENT SCHEDULE.] (a) A facility 
275.6   must conduct and electronically submit to the commissioner of 
275.7   health case mix assessments that conform with the assessment 
275.8   schedule defined by the Code of Federal Regulations, title 42, 
275.9   section 483.20, and published by the United States Department of 
275.10  Health and Human Services, Health Care Financing Administration, 
275.11  in the Long Term Care Assessment Instrument User's Manual, 
275.12  version 2.0, October 1995, and subsequent clarifications made in 
275.13  the Long-Term Care Assessment Instrument Questions and Answers, 
275.14  version 2.0, August 1996.  The commissioner of health may 
275.15  substitute successor manuals or question and answer documents 
275.16  published by the United States Department of Health and Human 
275.17  Services, Health Care Financing Administration, to replace or 
275.18  supplement the current version of the manual or document. 
275.19     (b) The assessments used to determine a case mix 
275.20  classification for reimbursement include the following: 
275.21     (1) a new admission assessment must be completed by day 14 
275.22  following admission; 
275.23     (2) an annual assessment must be completed within 366 days 
275.24  of the last comprehensive assessment; 
275.25     (3) a significant change assessment must be completed 
275.26  within 14 days of the identification of a significant change; 
275.27  and 
275.28     (4) the second quarterly assessment following either a new 
275.29  admission assessment, an annual assessment, or a significant 
275.30  change assessment.  Each quarterly assessment must be completed 
275.31  within 92 days of the previous assessment. 
275.32     Subd. 5.  [SHORT STAYS.] (a) A facility must submit to the 
275.33  commissioner of health an initial admission assessment for all 
275.34  residents who stay in the facility less than 14 days. 
275.35     (b) Notwithstanding the admission assessment requirements 
275.36  of paragraph (a), a facility may elect to accept a default rate 
276.1   with a case mix index of 1.0 for all facility residents who stay 
276.2   less than 14 days in lieu of submitting an initial assessment.  
276.3   Facilities may make this election to be effective on the day of 
276.4   implementation of the revised case mix system. 
276.5      (c) After implementation of the revised case mix system, 
276.6   nursing facilities must elect one of the options described in 
276.7   paragraphs (a) and (b) on the annual report to the commissioner 
276.8   of human services filed for each report year ending September 
276.9   30.  The election shall be effective on the following July 1. 
276.10     (d) For residents who are admitted or readmitted and leave 
276.11  the facility on a frequent basis and for whom readmission is 
276.12  expected, the resident may be discharged on an extended leave 
276.13  status.  This status does not require reassessment each time the 
276.14  resident returns to the facility unless a significant change in 
276.15  the resident's status has occurred since the last assessment.  
276.16  The case mix classification for these residents is determined by 
276.17  the facility election made in paragraphs (a) and (b). 
276.18     Subd. 6.  [PENALTIES FOR LATE OR NONSUBMISSION.] A facility 
276.19  that fails to complete or submit an assessment for a RUG-III 
276.20  classification within seven days of the time requirements in 
276.21  subdivisions 4 and 5 is subject to a reduced rate for that 
276.22  resident.  The reduced rate shall be the lowest rate for that 
276.23  facility.  The reduced rate is effective on the day of admission 
276.24  for new admission assessments or on the day that the assessment 
276.25  was due for all other assessments and continues in effect until 
276.26  the first day of the month following the date of submission of 
276.27  the resident's assessment. 
276.28     Subd. 7.  [NOTICE OF RESIDENT REIMBURSEMENT 
276.29  CLASSIFICATION.] (a) A facility must elect between the options 
276.30  in clauses (1) and (2) to provide notice to a resident of the 
276.31  resident's case mix classification. 
276.32     (1) The commissioner of health shall provide to a nursing 
276.33  facility a notice for each resident of the reimbursement 
276.34  classification established under subdivision 1.  The notice must 
276.35  inform the resident of the classification that was assigned, the 
276.36  opportunity to review the documentation supporting the 
277.1   classification, the opportunity to obtain clarification from the 
277.2   commissioner, and the opportunity to request a reconsideration 
277.3   of the classification.  The commissioner must send notice of 
277.4   resident classification by first class mail.  A nursing facility 
277.5   is responsible for the distribution of the notice to each 
277.6   resident, to the person responsible for the payment of the 
277.7   resident's nursing home expenses, or to another person 
277.8   designated by the resident.  This notice must be distributed 
277.9   within three working days after the facility's receipt of the 
277.10  notice from the commissioner of health. 
277.11     (2) A facility may choose to provide a classification 
277.12  notice, as prescribed by the commissioner of health, to a 
277.13  resident upon receipt of the confirmation of the case mix 
277.14  classification calculated by a facility or a corrected case mix 
277.15  classification as indicated on the final validation report from 
277.16  the commissioner.  A nursing facility is responsible for the 
277.17  distribution of the notice to each resident, to the person 
277.18  responsible for the payment of the resident's nursing home 
277.19  expenses, or to another person designated by the resident.  This 
277.20  notice must be distributed within three working days after the 
277.21  facility's receipt of the validation report from the 
277.22  commissioner.  If a facility elects this option, the 
277.23  commissioner of health shall provide the facility with a list of 
277.24  residents and their case mix classifications as determined by 
277.25  the commissioner.  A nursing facility may make this election to 
277.26  be effective on the day of implementation of the revised case 
277.27  mix system. 
277.28     (3) After implementation of the revised case mix system, a 
277.29  nursing facility shall elect a notice of resident reimbursement 
277.30  classification procedure as described in clause (1) or (2) on 
277.31  the annual report to the commissioner of human services filed 
277.32  for each report year ending September 30.  The election will be 
277.33  effective the following July 1. 
277.34     (b) If a facility submits a correction to an assessment 
277.35  conducted under subdivision 3 that results in a change in case 
277.36  mix classification, the facility shall give written notice to 
278.1   the resident or the resident's representative about the item 
278.2   that was corrected and the reason for the correction.  The 
278.3   notice of corrected assessment may be provided at the same time 
278.4   that the resident or resident's representative is provided the 
278.5   resident's corrected notice of classification. 
278.6      Subd. 8.  [REQUEST FOR RECONSIDERATION OF RESIDENT 
278.7   CLASSIFICATIONS.] (a) The resident, or resident's 
278.8   representative, or the nursing facility or boarding care home 
278.9   may request that the commissioner of health reconsider the 
278.10  assigned reimbursement classification.  The request for 
278.11  reconsideration must be submitted in writing to the commissioner 
278.12  within 30 days of the day the resident or the resident's 
278.13  representative receives the resident classification notice.  The 
278.14  request for reconsideration must include the name of the 
278.15  resident, the name and address of the facility in which the 
278.16  resident resides, the reasons for the reconsideration, the 
278.17  requested classification changes, and documentation supporting 
278.18  the requested classification.  The documentation accompanying 
278.19  the reconsideration request is limited to documentation which 
278.20  establishes that the needs of the resident at the time of the 
278.21  assessment justify a classification which is different than the 
278.22  classification established by the commissioner of health. 
278.23     (b) Upon request, the nursing facility must give the 
278.24  resident or the resident's representative a copy of the 
278.25  assessment form and the other documentation that was given to 
278.26  the commissioner of health to support the assessment findings.  
278.27  The nursing facility shall also provide access to and a copy of 
278.28  other information from the resident's record that has been 
278.29  requested by or on behalf of the resident to support a 
278.30  resident's reconsideration request.  A copy of any requested 
278.31  material must be provided within three working days of receipt 
278.32  of a written request for the information.  If a facility fails 
278.33  to provide the material within this time, it is subject to the 
278.34  issuance of a correction order and penalty assessment under 
278.35  sections 144.653 and 144A.10.  Notwithstanding those sections, 
278.36  any correction order issued under this subdivision must require 
279.1   that the nursing facility immediately comply with the request 
279.2   for information and that as of the date of the issuance of the 
279.3   correction order, the facility shall forfeit to the state a $100 
279.4   fine for the first day of noncompliance, and an increase in the 
279.5   $100 fine by $50 increments for each day the noncompliance 
279.6   continues. 
279.7      (c) In addition to the information required under 
279.8   paragraphs (a) and (b), a reconsideration request from a nursing 
279.9   facility must contain the following information:  (i) the date 
279.10  the reimbursement classification notices were received by the 
279.11  facility; (ii) the date the classification notices were 
279.12  distributed to the resident or the resident's representative; 
279.13  and (iii) a copy of a notice sent to the resident or to the 
279.14  resident's representative.  This notice must inform the resident 
279.15  or the resident's representative that a reconsideration of the 
279.16  resident's classification is being requested, the reason for the 
279.17  request, that the resident's rate will change if the request is 
279.18  approved by the commissioner, the extent of the change, that 
279.19  copies of the facility's request and supporting documentation 
279.20  are available for review, and that the resident also has the 
279.21  right to request a reconsideration.  If the facility fails to 
279.22  provide the required information with the reconsideration 
279.23  request, the request must be denied, and the facility may not 
279.24  make further reconsideration requests on that specific 
279.25  reimbursement classification. 
279.26     (d) Reconsideration by the commissioner must be made by 
279.27  individuals not involved in reviewing the assessment, audit, or 
279.28  reconsideration that established the disputed classification.  
279.29  The reconsideration must be based upon the initial assessment 
279.30  and upon the information provided to the commissioner under 
279.31  paragraphs (a) and (b).  If necessary for evaluating the 
279.32  reconsideration request, the commissioner may conduct on-site 
279.33  reviews.  Within 15 working days of receiving the request for 
279.34  reconsideration, the commissioner shall affirm or modify the 
279.35  original resident classification.  The original classification 
279.36  must be modified if the commissioner determines that the 
280.1   assessment resulting in the classification did not accurately 
280.2   reflect the needs or assessment characteristics of the resident 
280.3   at the time of the assessment.  The resident and the nursing 
280.4   facility or boarding care home shall be notified within five 
280.5   working days after the decision is made.  A decision by the 
280.6   commissioner under this subdivision is the final administrative 
280.7   decision of the agency for the party requesting reconsideration. 
280.8      (e) The resident classification established by the 
280.9   commissioner shall be the classification that applies to the 
280.10  resident while the request for reconsideration is pending. 
280.11     (f) The commissioner may request additional documentation 
280.12  regarding a reconsideration necessary to make an accurate 
280.13  reconsideration determination. 
280.14     Subd. 9.  [AUDIT AUTHORITY.] (a) The commissioner shall 
280.15  audit the accuracy of resident assessments performed under 
280.16  section 256B.437 through desk audits, on-site review of 
280.17  residents and their records, and interviews with staff and 
280.18  families.  The commissioner shall reclassify a resident if the 
280.19  commissioner determines that the resident was incorrectly 
280.20  classified. 
280.21     (b) The commissioner is authorized to conduct on-site 
280.22  audits on an unannounced basis. 
280.23     (c) A facility must grant the commissioner access to 
280.24  examine the medical records relating to the resident assessments 
280.25  selected for audit under this subdivision.  The commissioner may 
280.26  also observe and speak to facility staff and residents. 
280.27     (d) The commissioner shall consider documentation under the 
280.28  time frames for coding items on the minimum data set as set out 
280.29  in the Resident Assessment Instrument Manual published by the 
280.30  Health Care Financing Administration. 
280.31     (e) The commissioner shall develop an audit selection 
280.32  procedure that includes the following factors: 
280.33     (1) The commissioner may target facilities that demonstrate 
280.34  an atypical pattern of scoring minimum data set items, 
280.35  nonsubmission of assessments, late submission of assessments, or 
280.36  a previous history of audit changes of greater than 35 percent.  
281.1   The commissioner shall select at least 20 percent of the most 
281.2   current assessments submitted to the state for audit.  Audits of 
281.3   assessments selected in the targeted facilities must focus on 
281.4   the factors leading to the audit.  If the number of targeted 
281.5   assessments selected does not meet the threshold of 20 percent 
281.6   of the facility residents, then a stratified sample of the 
281.7   remainder of assessments shall be drawn to meet the quota.  If 
281.8   the total change exceeds 35 percent, the commissioner may 
281.9   conduct an expanded audit up to 100 percent of the remaining 
281.10  current assessments. 
281.11     (2) Facilities that are not a part of the targeted group 
281.12  shall be placed in a general pool from which facilities will be 
281.13  selected on a random basis for audit.  Every facility shall be 
281.14  audited annually.  If a facility has two successive audits in 
281.15  which the percentage of change is five percent or less and the 
281.16  facility has not been the subject of a targeted audit in the 
281.17  past 36 months, the facility may be audited biannually.  A 
281.18  stratified sample of 15 percent of the most current assessments 
281.19  shall be selected for audit.  If more than 20 percent of the 
281.20  RUGS-III classifications after the audit are changed, the audit 
281.21  shall be expanded to a second 15 percent sample.  If the total 
281.22  change between the first and second samples exceed 35 percent, 
281.23  the commissioner may expand the audit to all of the remaining 
281.24  assessments. 
281.25     (3) If a facility qualifies for an expanded audit, the 
281.26  commissioner may audit the facility again within six months.  If 
281.27  a facility has two expanded audits within a 24-month period, 
281.28  that facility will be audited at least every six months for the 
281.29  next 18 months. 
281.30     (4) The commissioner may conduct special audits if the 
281.31  commissioner determines that circumstances exist that could 
281.32  alter or affect the validity of case mix classifications of 
281.33  residents.  These circumstances include, but are not limited to, 
281.34  the following:  
281.35     (i) frequent changes in the administration or management of 
281.36  the facility; 
282.1      (ii) an unusually high percentage of residents in a 
282.2   specific case mix classification; 
282.3      (iii) a high frequency in the number of reconsideration 
282.4   requests received from a facility; 
282.5      (iv) frequent adjustments of case mix classifications as 
282.6   the result of reconsiderations or audits; 
282.7      (v) a criminal indictment alleging provider fraud; or 
282.8      (vi) other similar factors that relate to a facility's 
282.9   ability to conduct accurate assessments. 
282.10     (f) Within 15 working days of completing the audit process, 
282.11  the commissioner shall mail the written results of the audit to 
282.12  the facility, along with a written notice for each resident 
282.13  affected to be forwarded by the facility.  The notice must 
282.14  contain the resident's classification and a statement informing 
282.15  the resident, the resident's authorized representative, and the 
282.16  facility of their right to review the commissioner's documents 
282.17  supporting the classification and to request a reconsideration 
282.18  of the classification.  This notice must also include the 
282.19  address and telephone number of the area nursing home ombudsman. 
282.20     Subd. 10.  [TRANSITION.] After implementation of this 
282.21  section, reconsiderations requested for classifications made 
282.22  under section 144.0722, subdivision 1, shall be determined under 
282.23  section 144.0722, subdivision 3. 
282.24     Sec. 2.  Minnesota Statutes 2000, section 144A.071, 
282.25  subdivision 1, is amended to read: 
282.26     Subdivision 1.  [FINDINGS.] The legislature declares that a 
282.27  moratorium on the licensure and medical assistance certification 
282.28  of new nursing home beds and construction projects that 
282.29  exceed $750,000 $1,000,000 is necessary to control nursing home 
282.30  expenditure growth and enable the state to meet the needs of its 
282.31  elderly by providing high quality services in the most 
282.32  appropriate manner along a continuum of care.  
282.33     Sec. 3.  Minnesota Statutes 2000, section 144A.071, 
282.34  subdivision 1a, is amended to read: 
282.35     Subd. 1a.  [DEFINITIONS.] For purposes of sections 144A.071 
282.36  to 144A.073, the following terms have the meanings given them: 
283.1      (a) "attached fixtures" has the meaning given in Minnesota 
283.2   Rules, part 9549.0020, subpart 6. 
283.3      (b) "buildings" has the meaning given in Minnesota Rules, 
283.4   part 9549.0020, subpart 7. 
283.5      (c) "capital assets" has the meaning given in section 
283.6   256B.421, subdivision 16. 
283.7      (d) "commenced construction" means that all of the 
283.8   following conditions were met:  the final working drawings and 
283.9   specifications were approved by the commissioner of health; the 
283.10  construction contracts were let; a timely construction schedule 
283.11  was developed, stipulating dates for beginning, achieving 
283.12  various stages, and completing construction; and all zoning and 
283.13  building permits were applied for. 
283.14     (e) "completion date" means the date on which a certificate 
283.15  of occupancy is issued for a construction project, or if a 
283.16  certificate of occupancy is not required, the date on which the 
283.17  construction project is available for facility use. 
283.18     (f) "construction" means any erection, building, 
283.19  alteration, reconstruction, modernization, or improvement 
283.20  necessary to comply with the nursing home licensure rules. 
283.21     (g) "construction project" means: 
283.22     (1) a capital asset addition to, or replacement of a 
283.23  nursing home or certified boarding care home that results in new 
283.24  space or the remodeling of or renovations to existing facility 
283.25  space; 
283.26     (2) the remodeling or renovation of existing facility space 
283.27  the use of which is modified as a result of the project 
283.28  described in clause (1).  This existing space and the project 
283.29  described in clause (1) must be used for the functions as 
283.30  designated on the construction plans on completion of the 
283.31  project described in clause (1) for a period of not less than 24 
283.32  months; or 
283.33     (3) capital asset additions or replacements that are 
283.34  completed within 12 months before or after the completion date 
283.35  of the project described in clause (1). 
283.36     (h) "new licensed" or "new certified beds" means: 
284.1      (1) newly constructed beds in a facility or the 
284.2   construction of a new facility that would increase the total 
284.3   number of licensed nursing home beds or certified boarding care 
284.4   or nursing home beds in the state; or 
284.5      (2) newly licensed nursing home beds or newly certified 
284.6   boarding care or nursing home beds that result from remodeling 
284.7   of the facility that involves relocation of beds but does not 
284.8   result in an increase in the total number of beds, except when 
284.9   the project involves the upgrade of boarding care beds to 
284.10  nursing home beds, as defined in section 144A.073, subdivision 
284.11  1.  "Remodeling" includes any of the type of conversion, 
284.12  renovation, replacement, or upgrading projects as defined in 
284.13  section 144A.073, subdivision 1. 
284.14     (i) "project construction costs" means the cost of the 
284.15  facility capital asset additions, replacements, renovations, or 
284.16  remodeling projects, construction site preparation costs, and 
284.17  related soft costs.  Project construction costs also include the 
284.18  cost of any remodeling or renovation of existing facility space 
284.19  which is modified as a result of the construction 
284.20  project.  Project construction costs also includes the cost of 
284.21  new technology implemented as part of the construction project. 
284.22     (j) "technology" means information systems or devices that 
284.23  make documentation, charting, and staff time more efficient or 
284.24  encourage and allow for care through alternative settings 
284.25  including, but not limited to, touch screens, monitors, 
284.26  hand-helds, swipe cards, motion detectors, pagers, telemedicine, 
284.27  medication dispensers, and equipment to monitor vital signs and 
284.28  self-injections, and to observe skin and other conditions. 
284.29     Sec. 4.  Minnesota Statutes 2000, section 144A.071, 
284.30  subdivision 2, is amended to read: 
284.31     Subd. 2.  [MORATORIUM.] The commissioner of health, in 
284.32  coordination with the commissioner of human services, shall deny 
284.33  each request for new licensed or certified nursing home or 
284.34  certified boarding care beds except as provided in subdivision 3 
284.35  or 4a, or section 144A.073.  "Certified bed" means a nursing 
284.36  home bed or a boarding care bed certified by the commissioner of 
285.1   health for the purposes of the medical assistance program, under 
285.2   United States Code, title 42, sections 1396 et seq.  
285.3      The commissioner of human services, in coordination with 
285.4   the commissioner of health, shall deny any request to issue a 
285.5   license under section 252.28 and chapter 245A to a nursing home 
285.6   or boarding care home, if that license would result in an 
285.7   increase in the medical assistance reimbursement amount.  
285.8      In addition, the commissioner of health must not approve 
285.9   any construction project whose cost exceeds $750,000 $1,000,000 
285.10  unless: 
285.11     (a) any construction costs exceeding $750,000 $1,000,000 
285.12  are not added to the facility's appraised value and are not 
285.13  included in the facility's payment rate for reimbursement under 
285.14  the medical assistance program; or 
285.15     (b) the project: 
285.16     (1) has been approved through the process described in 
285.17  section 144A.073; 
285.18     (2) meets an exception in subdivision 3 or 4a; 
285.19     (3) is necessary to correct violations of state or federal 
285.20  law issued by the commissioner of health; 
285.21     (4) is necessary to repair or replace a portion of the 
285.22  facility that was damaged by fire, lightning, groundshifts, or 
285.23  other such hazards, including environmental hazards, provided 
285.24  that the provisions of subdivision 4a, clause (a), are met; 
285.25     (5) as of May 1, 1992, the facility has submitted to the 
285.26  commissioner of health written documentation evidencing that the 
285.27  facility meets the "commenced construction" definition as 
285.28  specified in subdivision 1a, clause (d), or that substantial 
285.29  steps have been taken prior to April 1, 1992, relating to the 
285.30  construction project.  "Substantial steps" require that the 
285.31  facility has made arrangements with outside parties relating to 
285.32  the construction project and include the hiring of an architect 
285.33  or construction firm, submission of preliminary plans to the 
285.34  department of health or documentation from a financial 
285.35  institution that financing arrangements for the construction 
285.36  project have been made; or 
286.1      (6) is being proposed by a licensed nursing facility that 
286.2   is not certified to participate in the medical assistance 
286.3   program and will not result in new licensed or certified beds. 
286.4      Prior to the final plan approval of any construction 
286.5   project, the commissioner of health shall be provided with an 
286.6   itemized cost estimate for the project construction costs.  If a 
286.7   construction project is anticipated to be completed in phases, 
286.8   the total estimated cost of all phases of the project shall be 
286.9   submitted to the commissioner and shall be considered as one 
286.10  construction project.  Once the construction project is 
286.11  completed and prior to the final clearance by the commissioner, 
286.12  the total project construction costs for the construction 
286.13  project shall be submitted to the commissioner.  If the final 
286.14  project construction cost exceeds the dollar threshold in this 
286.15  subdivision, the commissioner of human services shall not 
286.16  recognize any of the project construction costs or the related 
286.17  financing costs in excess of this threshold in establishing the 
286.18  facility's property-related payment rate. 
286.19     The dollar thresholds for construction projects are as 
286.20  follows:  for construction projects other than those authorized 
286.21  in clauses (1) to (6), the dollar threshold 
286.22  is $750,000 $1,000,000.  For projects authorized after July 1, 
286.23  1993, under clause (1), the dollar threshold is the cost 
286.24  estimate submitted with a proposal for an exception under 
286.25  section 144A.073, plus inflation as calculated according to 
286.26  section 256B.431, subdivision 3f, paragraph (a).  For projects 
286.27  authorized under clauses (2) to (4), the dollar threshold is the 
286.28  itemized estimate project construction costs submitted to the 
286.29  commissioner of health at the time of final plan approval, plus 
286.30  inflation as calculated according to section 256B.431, 
286.31  subdivision 3f, paragraph (a). 
286.32     The commissioner of health shall adopt rules to implement 
286.33  this section or to amend the emergency rules for granting 
286.34  exceptions to the moratorium on nursing homes under section 
286.35  144A.073.  
286.36     Sec. 5.  Minnesota Statutes 2000, section 144A.071, 
287.1   subdivision 4a, is amended to read: 
287.2      Subd. 4a.  [EXCEPTIONS FOR REPLACEMENT BEDS.] It is in the 
287.3   best interest of the state to ensure that nursing homes and 
287.4   boarding care homes continue to meet the physical plant 
287.5   licensing and certification requirements by permitting certain 
287.6   construction projects.  Facilities should be maintained in 
287.7   condition to satisfy the physical and emotional needs of 
287.8   residents while allowing the state to maintain control over 
287.9   nursing home expenditure growth. 
287.10     The commissioner of health in coordination with the 
287.11  commissioner of human services, may approve the renovation, 
287.12  replacement, upgrading, or relocation of a nursing home or 
287.13  boarding care home, under the following conditions: 
287.14     (a) to license or certify beds in a new facility 
287.15  constructed to replace a facility or to make repairs in an 
287.16  existing facility that was destroyed or damaged after June 30, 
287.17  1987, by fire, lightning, or other hazard provided:  
287.18     (i) destruction was not caused by the intentional act of or 
287.19  at the direction of a controlling person of the facility; 
287.20     (ii) at the time the facility was destroyed or damaged the 
287.21  controlling persons of the facility maintained insurance 
287.22  coverage for the type of hazard that occurred in an amount that 
287.23  a reasonable person would conclude was adequate; 
287.24     (iii) the net proceeds from an insurance settlement for the 
287.25  damages caused by the hazard are applied to the cost of the new 
287.26  facility or repairs; 
287.27     (iv) the new facility is constructed on the same site as 
287.28  the destroyed facility or on another site subject to the 
287.29  restrictions in section 144A.073, subdivision 5; 
287.30     (v) the number of licensed and certified beds in the new 
287.31  facility does not exceed the number of licensed and certified 
287.32  beds in the destroyed facility; and 
287.33     (vi) the commissioner determines that the replacement beds 
287.34  are needed to prevent an inadequate supply of beds. 
287.35  Project construction costs incurred for repairs authorized under 
287.36  this clause shall not be considered in the dollar threshold 
288.1   amount defined in subdivision 2; 
288.2      (b) to license or certify beds that are moved from one 
288.3   location to another within a nursing home facility, provided the 
288.4   total costs of remodeling performed in conjunction with the 
288.5   relocation of beds does not exceed $750,000 $1,000,000; 
288.6      (c) to license or certify beds in a project recommended for 
288.7   approval under section 144A.073; 
288.8      (d) to license or certify beds that are moved from an 
288.9   existing state nursing home to a different state facility, 
288.10  provided there is no net increase in the number of state nursing 
288.11  home beds; 
288.12     (e) to certify and license as nursing home beds boarding 
288.13  care beds in a certified boarding care facility if the beds meet 
288.14  the standards for nursing home licensure, or in a facility that 
288.15  was granted an exception to the moratorium under section 
288.16  144A.073, and if the cost of any remodeling of the facility does 
288.17  not exceed $750,000 $1,000,000.  If boarding care beds are 
288.18  licensed as nursing home beds, the number of boarding care beds 
288.19  in the facility must not increase beyond the number remaining at 
288.20  the time of the upgrade in licensure.  The provisions contained 
288.21  in section 144A.073 regarding the upgrading of the facilities do 
288.22  not apply to facilities that satisfy these requirements; 
288.23     (f) to license and certify up to 40 beds transferred from 
288.24  an existing facility owned and operated by the Amherst H. Wilder 
288.25  Foundation in the city of St. Paul to a new unit at the same 
288.26  location as the existing facility that will serve persons with 
288.27  Alzheimer's disease and other related disorders.  The transfer 
288.28  of beds may occur gradually or in stages, provided the total 
288.29  number of beds transferred does not exceed 40.  At the time of 
288.30  licensure and certification of a bed or beds in the new unit, 
288.31  the commissioner of health shall delicense and decertify the 
288.32  same number of beds in the existing facility.  As a condition of 
288.33  receiving a license or certification under this clause, the 
288.34  facility must make a written commitment to the commissioner of 
288.35  human services that it will not seek to receive an increase in 
288.36  its property-related payment rate as a result of the transfers 
289.1   allowed under this paragraph; 
289.2      (g) to license and certify nursing home beds to replace 
289.3   currently licensed and certified boarding care beds which may be 
289.4   located either in a remodeled or renovated boarding care or 
289.5   nursing home facility or in a remodeled, renovated, newly 
289.6   constructed, or replacement nursing home facility within the 
289.7   identifiable complex of health care facilities in which the 
289.8   currently licensed boarding care beds are presently located, 
289.9   provided that the number of boarding care beds in the facility 
289.10  or complex are decreased by the number to be licensed as nursing 
289.11  home beds and further provided that, if the total costs of new 
289.12  construction, replacement, remodeling, or renovation exceed ten 
289.13  percent of the appraised value of the facility or $200,000, 
289.14  whichever is less, the facility makes a written commitment to 
289.15  the commissioner of human services that it will not seek to 
289.16  receive an increase in its property-related payment rate by 
289.17  reason of the new construction, replacement, remodeling, or 
289.18  renovation.  The provisions contained in section 144A.073 
289.19  regarding the upgrading of facilities do not apply to facilities 
289.20  that satisfy these requirements; 
289.21     (h) to license as a nursing home and certify as a nursing 
289.22  facility a facility that is licensed as a boarding care facility 
289.23  but not certified under the medical assistance program, but only 
289.24  if the commissioner of human services certifies to the 
289.25  commissioner of health that licensing the facility as a nursing 
289.26  home and certifying the facility as a nursing facility will 
289.27  result in a net annual savings to the state general fund of 
289.28  $200,000 or more; 
289.29     (i) to certify, after September 30, 1992, and prior to July 
289.30  1, 1993, existing nursing home beds in a facility that was 
289.31  licensed and in operation prior to January 1, 1992; 
289.32     (j) to license and certify new nursing home beds to replace 
289.33  beds in a facility acquired by the Minneapolis community 
289.34  development agency as part of redevelopment activities in a city 
289.35  of the first class, provided the new facility is located within 
289.36  three miles of the site of the old facility.  Operating and 
290.1   property costs for the new facility must be determined and 
290.2   allowed under section 256B.431 or 256B.434; 
290.3      (k) to license and certify up to 20 new nursing home beds 
290.4   in a community-operated hospital and attached convalescent and 
290.5   nursing care facility with 40 beds on April 21, 1991, that 
290.6   suspended operation of the hospital in April 1986.  The 
290.7   commissioner of human services shall provide the facility with 
290.8   the same per diem property-related payment rate for each 
290.9   additional licensed and certified bed as it will receive for its 
290.10  existing 40 beds; 
290.11     (l) to license or certify beds in renovation, replacement, 
290.12  or upgrading projects as defined in section 144A.073, 
290.13  subdivision 1, so long as the cumulative total costs of the 
290.14  facility's remodeling projects do not 
290.15  exceed $750,000 $1,000,000; 
290.16     (m) to license and certify beds that are moved from one 
290.17  location to another for the purposes of converting up to five 
290.18  four-bed wards to single or double occupancy rooms in a nursing 
290.19  home that, as of January 1, 1993, was county-owned and had a 
290.20  licensed capacity of 115 beds; 
290.21     (n) to allow a facility that on April 16, 1993, was a 
290.22  106-bed licensed and certified nursing facility located in 
290.23  Minneapolis to layaway all of its licensed and certified nursing 
290.24  home beds.  These beds may be relicensed and recertified in a 
290.25  newly-constructed teaching nursing home facility affiliated with 
290.26  a teaching hospital upon approval by the legislature.  The 
290.27  proposal must be developed in consultation with the interagency 
290.28  committee on long-term care planning.  The beds on layaway 
290.29  status shall have the same status as voluntarily delicensed and 
290.30  decertified beds, except that beds on layaway status remain 
290.31  subject to the surcharge in section 256.9657.  This layaway 
290.32  provision expires July 1, 1998; 
290.33     (o) to allow a project which will be completed in 
290.34  conjunction with an approved moratorium exception project for a 
290.35  nursing home in southern Cass county and which is directly 
290.36  related to that portion of the facility that must be repaired, 
291.1   renovated, or replaced, to correct an emergency plumbing problem 
291.2   for which a state correction order has been issued and which 
291.3   must be corrected by August 31, 1993; 
291.4      (p) to allow a facility that on April 16, 1993, was a 
291.5   368-bed licensed and certified nursing facility located in 
291.6   Minneapolis to layaway, upon 30 days prior written notice to the 
291.7   commissioner, up to 30 of the facility's licensed and certified 
291.8   beds by converting three-bed wards to single or double 
291.9   occupancy.  Beds on layaway status shall have the same status as 
291.10  voluntarily delicensed and decertified beds except that beds on 
291.11  layaway status remain subject to the surcharge in section 
291.12  256.9657, remain subject to the license application and renewal 
291.13  fees under section 144A.07 and shall be subject to a $100 per 
291.14  bed reactivation fee.  In addition, at any time within three 
291.15  years of the effective date of the layaway, the beds on layaway 
291.16  status may be: 
291.17     (1) relicensed and recertified upon relocation and 
291.18  reactivation of some or all of the beds to an existing licensed 
291.19  and certified facility or facilities located in Pine River, 
291.20  Brainerd, or International Falls; provided that the total 
291.21  project construction costs related to the relocation of beds 
291.22  from layaway status for any facility receiving relocated beds 
291.23  may not exceed the dollar threshold provided in subdivision 2 
291.24  unless the construction project has been approved through the 
291.25  moratorium exception process under section 144A.073; 
291.26     (2) relicensed and recertified, upon reactivation of some 
291.27  or all of the beds within the facility which placed the beds in 
291.28  layaway status, if the commissioner has determined a need for 
291.29  the reactivation of the beds on layaway status. 
291.30     The property-related payment rate of a facility placing 
291.31  beds on layaway status must be adjusted by the incremental 
291.32  change in its rental per diem after recalculating the rental per 
291.33  diem as provided in section 256B.431, subdivision 3a, paragraph 
291.34  (c).  The property-related payment rate for a facility 
291.35  relicensing and recertifying beds from layaway status must be 
291.36  adjusted by the incremental change in its rental per diem after 
292.1   recalculating its rental per diem using the number of beds after 
292.2   the relicensing to establish the facility's capacity day 
292.3   divisor, which shall be effective the first day of the month 
292.4   following the month in which the relicensing and recertification 
292.5   became effective.  Any beds remaining on layaway status more 
292.6   than three years after the date the layaway status became 
292.7   effective must be removed from layaway status and immediately 
292.8   delicensed and decertified; 
292.9      (q) to license and certify beds in a renovation and 
292.10  remodeling project to convert 12 four-bed wards into 24 two-bed 
292.11  rooms, expand space, and add improvements in a nursing home 
292.12  that, as of January 1, 1994, met the following conditions:  the 
292.13  nursing home was located in Ramsey county; had a licensed 
292.14  capacity of 154 beds; and had been ranked among the top 15 
292.15  applicants by the 1993 moratorium exceptions advisory review 
292.16  panel.  The total project construction cost estimate for this 
292.17  project must not exceed the cost estimate submitted in 
292.18  connection with the 1993 moratorium exception process; 
292.19     (r) to license and certify up to 117 beds that are 
292.20  relocated from a licensed and certified 138-bed nursing facility 
292.21  located in St. Paul to a hospital with 130 licensed hospital 
292.22  beds located in South St. Paul, provided that the nursing 
292.23  facility and hospital are owned by the same or a related 
292.24  organization and that prior to the date the relocation is 
292.25  completed the hospital ceases operation of its inpatient 
292.26  hospital services at that hospital.  After relocation, the 
292.27  nursing facility's status under section 256B.431, subdivision 
292.28  2j, shall be the same as it was prior to relocation.  The 
292.29  nursing facility's property-related payment rate resulting from 
292.30  the project authorized in this paragraph shall become effective 
292.31  no earlier than April 1, 1996.  For purposes of calculating the 
292.32  incremental change in the facility's rental per diem resulting 
292.33  from this project, the allowable appraised value of the nursing 
292.34  facility portion of the existing health care facility physical 
292.35  plant prior to the renovation and relocation may not exceed 
292.36  $2,490,000; 
293.1      (s) to license and certify two beds in a facility to 
293.2   replace beds that were voluntarily delicensed and decertified on 
293.3   June 28, 1991; 
293.4      (t) to allow 16 licensed and certified beds located on July 
293.5   1, 1994, in a 142-bed nursing home and 21-bed boarding care home 
293.6   facility in Minneapolis, notwithstanding the licensure and 
293.7   certification after July 1, 1995, of the Minneapolis facility as 
293.8   a 147-bed nursing home facility after completion of a 
293.9   construction project approved in 1993 under section 144A.073, to 
293.10  be laid away upon 30 days' prior written notice to the 
293.11  commissioner.  Beds on layaway status shall have the same status 
293.12  as voluntarily delicensed or decertified beds except that they 
293.13  shall remain subject to the surcharge in section 256.9657.  The 
293.14  16 beds on layaway status may be relicensed as nursing home beds 
293.15  and recertified at any time within five years of the effective 
293.16  date of the layaway upon relocation of some or all of the beds 
293.17  to a licensed and certified facility located in Watertown, 
293.18  provided that the total project construction costs related to 
293.19  the relocation of beds from layaway status for the Watertown 
293.20  facility may not exceed the dollar threshold provided in 
293.21  subdivision 2 unless the construction project has been approved 
293.22  through the moratorium exception process under section 144A.073. 
293.23     The property-related payment rate of the facility placing 
293.24  beds on layaway status must be adjusted by the incremental 
293.25  change in its rental per diem after recalculating the rental per 
293.26  diem as provided in section 256B.431, subdivision 3a, paragraph 
293.27  (c).  The property-related payment rate for the facility 
293.28  relicensing and recertifying beds from layaway status must be 
293.29  adjusted by the incremental change in its rental per diem after 
293.30  recalculating its rental per diem using the number of beds after 
293.31  the relicensing to establish the facility's capacity day 
293.32  divisor, which shall be effective the first day of the month 
293.33  following the month in which the relicensing and recertification 
293.34  became effective.  Any beds remaining on layaway status more 
293.35  than five years after the date the layaway status became 
293.36  effective must be removed from layaway status and immediately 
294.1   delicensed and decertified; 
294.2      (u) to license and certify beds that are moved within an 
294.3   existing area of a facility or to a newly constructed addition 
294.4   which is built for the purpose of eliminating three- and 
294.5   four-bed rooms and adding space for dining, lounge areas, 
294.6   bathing rooms, and ancillary service areas in a nursing home 
294.7   that, as of January 1, 1995, was located in Fridley and had a 
294.8   licensed capacity of 129 beds; 
294.9      (v) to relocate 36 beds in Crow Wing county and four beds 
294.10  from Hennepin county to a 160-bed facility in Crow Wing county, 
294.11  provided all the affected beds are under common ownership; 
294.12     (w) to license and certify a total replacement project of 
294.13  up to 49 beds located in Norman county that are relocated from a 
294.14  nursing home destroyed by flood and whose residents were 
294.15  relocated to other nursing homes.  The operating cost payment 
294.16  rates for the new nursing facility shall be determined based on 
294.17  the interim and settle-up payment provisions of Minnesota Rules, 
294.18  part 9549.0057, and the reimbursement provisions of section 
294.19  256B.431, except that subdivision 26, paragraphs (a) and (b), 
294.20  shall not apply until the second rate year after the settle-up 
294.21  cost report is filed.  Property-related reimbursement rates 
294.22  shall be determined under section 256B.431, taking into account 
294.23  any federal or state flood-related loans or grants provided to 
294.24  the facility; 
294.25     (x) to license and certify a total replacement project of 
294.26  up to 129 beds located in Polk county that are relocated from a 
294.27  nursing home destroyed by flood and whose residents were 
294.28  relocated to other nursing homes.  The operating cost payment 
294.29  rates for the new nursing facility shall be determined based on 
294.30  the interim and settle-up payment provisions of Minnesota Rules, 
294.31  part 9549.0057, and the reimbursement provisions of section 
294.32  256B.431, except that subdivision 26, paragraphs (a) and (b), 
294.33  shall not apply until the second rate year after the settle-up 
294.34  cost report is filed.  Property-related reimbursement rates 
294.35  shall be determined under section 256B.431, taking into account 
294.36  any federal or state flood-related loans or grants provided to 
295.1   the facility; 
295.2      (y) to license and certify beds in a renovation and 
295.3   remodeling project to convert 13 three-bed wards into 13 two-bed 
295.4   rooms and 13 single-bed rooms, expand space, and add 
295.5   improvements in a nursing home that, as of January 1, 1994, met 
295.6   the following conditions:  the nursing home was located in 
295.7   Ramsey county, was not owned by a hospital corporation, had a 
295.8   licensed capacity of 64 beds, and had been ranked among the top 
295.9   15 applicants by the 1993 moratorium exceptions advisory review 
295.10  panel.  The total project construction cost estimate for this 
295.11  project must not exceed the cost estimate submitted in 
295.12  connection with the 1993 moratorium exception process; 
295.13     (z) to license and certify up to 150 nursing home beds to 
295.14  replace an existing 285 bed nursing facility located in St. 
295.15  Paul.  The replacement project shall include both the renovation 
295.16  of existing buildings and the construction of new facilities at 
295.17  the existing site.  The reduction in the licensed capacity of 
295.18  the existing facility shall occur during the construction 
295.19  project as beds are taken out of service due to the construction 
295.20  process.  Prior to the start of the construction process, the 
295.21  facility shall provide written information to the commissioner 
295.22  of health describing the process for bed reduction, plans for 
295.23  the relocation of residents, and the estimated construction 
295.24  schedule.  The relocation of residents shall be in accordance 
295.25  with the provisions of law and rule; 
295.26     (aa) to allow the commissioner of human services to license 
295.27  an additional 36 beds to provide residential services for the 
295.28  physically handicapped under Minnesota Rules, parts 9570.2000 to 
295.29  9570.3400, in a 198-bed nursing home located in Red Wing, 
295.30  provided that the total number of licensed and certified beds at 
295.31  the facility does not increase; 
295.32     (bb) to license and certify a new facility in St. Louis 
295.33  county with 44 beds constructed to replace an existing facility 
295.34  in St. Louis county with 31 beds, which has resident rooms on 
295.35  two separate floors and an antiquated elevator that creates 
295.36  safety concerns for residents and prevents nonambulatory 
296.1   residents from residing on the second floor.  The project shall 
296.2   include the elimination of three- and four-bed rooms; 
296.3      (cc) to license and certify four beds in a 16-bed certified 
296.4   boarding care home in Minneapolis to replace beds that were 
296.5   voluntarily delicensed and decertified on or before March 31, 
296.6   1992.  The licensure and certification is conditional upon the 
296.7   facility periodically assessing and adjusting its resident mix 
296.8   and other factors which may contribute to a potential 
296.9   institution for mental disease declaration.  The commissioner of 
296.10  human services shall retain the authority to audit the facility 
296.11  at any time and shall require the facility to comply with any 
296.12  requirements necessary to prevent an institution for mental 
296.13  disease declaration, including delicensure and decertification 
296.14  of beds, if necessary; or 
296.15     (dd) to license and certify 72 beds in an existing facility 
296.16  in Mille Lacs county with 80 beds as part of a renovation 
296.17  project.  The renovation must include construction of an 
296.18  addition to accommodate ten residents with beginning and 
296.19  midstage dementia in a self-contained living unit; creation of 
296.20  three resident households where dining, activities, and support 
296.21  spaces are located near resident living quarters; designation of 
296.22  four beds for rehabilitation in a self-contained area; 
296.23  designation of 30 private rooms; and other improvements.; 
296.24     (ee) to license and certify beds in a facility that has 
296.25  undergone replacement or remodeling as part of a planned closure 
296.26  under section 256B.437; 
296.27     (ff) to license and certify a total replacement project of 
296.28  up to 124 beds located in Wilkin county that are in need of 
296.29  relocation from a nursing home substantially destroyed by 
296.30  flood.  The operating cost payment rates for the new nursing 
296.31  facility shall be determined based on the interim and settle-up 
296.32  payment provisions of Minnesota Rules, part 9549.0057, and the 
296.33  reimbursement provisions of section 256B.431, except that 
296.34  section 256B.431, subdivision 26, paragraphs (a) and (b), shall 
296.35  not apply until the second rate year after the settle-up cost 
296.36  report is filed.  Property-related reimbursement rates shall be 
297.1   determined under section 256B.431, taking into account any 
297.2   federal or state flood-related loans or grants provided to the 
297.3   facility; 
297.4      (gg) to allow the commissioner of human services to license 
297.5   an additional nine beds to provide residential services for the 
297.6   physically handicapped under Minnesota Rules, parts 9570.2000 to 
297.7   9570.3400, in a 215-bed nursing home located in Duluth, provided 
297.8   that the total number of licensed and certified beds at the 
297.9   facility does not increase; 
297.10     (hh) to license and certify up to 120 new nursing facility 
297.11  beds to replace beds in a facility in Anoka county, which was 
297.12  licensed for 98 beds as of July 1, 2000, provided the new 
297.13  facility is located within four miles of the existing facility 
297.14  and is in Anoka county.  Operating and property rates shall be 
297.15  determined and allowed under section 256B.431 and Minnesota 
297.16  Rules, parts 9549.0010 to 9549.0080, or section 256B.434 or 
297.17  256B.435.  The provisions of section 256B.431, subdivision 26, 
297.18  paragraphs (a) and (b), do not apply until the second rate year 
297.19  following settle-up; or 
297.20     (ii) to transfer up to 98 beds of a 129-licensed bed 
297.21  facility located in Anoka county that, as of March 25, 2001, is 
297.22  in the active process of closing, to a 122-licensed bed 
297.23  nonprofit nursing facility located in the city of Columbia 
297.24  Heights or its affiliate.  The transfer is effective when the 
297.25  receiving facility notifies the commissioner in writing of the 
297.26  number of beds accepted.  The commissioner shall place all 
297.27  transferred beds on layaway status held in the name of the 
297.28  receiving facility.  The layaway adjustment provisions of 
297.29  section 256B.431, subdivision 30, do not apply to this layaway.  
297.30  The receiving facility may only remove the beds from layaway for 
297.31  recertification and relicensure at the receiving facility's 
297.32  current site, or at a newly constructed facility located in 
297.33  Anoka county.  The receiving facility must receive statutory 
297.34  authorization before removing these beds from layaway. 
297.35     Sec. 6.  Minnesota Statutes 2000, section 144A.073, 
297.36  subdivision 2, is amended to read: 
298.1      Subd. 2.  [REQUEST FOR PROPOSALS.] At the authorization by 
298.2   the legislature of additional medical assistance expenditures 
298.3   for exceptions to the moratorium on nursing homes, the 
298.4   interagency committee shall publish in the State Register a 
298.5   request for proposals for nursing home projects to be licensed 
298.6   or certified under section 144A.071, subdivision 4a, clause 
298.7   (c).  The public notice of this funding and the request for 
298.8   proposals must specify how the approval criteria will be 
298.9   prioritized by the advisory review panel, the interagency 
298.10  long-term care planning committee, and the commissioner.  The 
298.11  notice must describe the information that must accompany a 
298.12  request and state that proposals must be submitted to the 
298.13  interagency committee within 90 days of the date of 
298.14  publication.  The notice must include the amount of the 
298.15  legislative appropriation available for the additional costs to 
298.16  the medical assistance program of projects approved under this 
298.17  section.  If no money is appropriated for a year, the 
298.18  interagency committee shall publish a notice to that effect, and 
298.19  no proposals shall be requested.  If money is appropriated, the 
298.20  interagency committee shall initiate the application and review 
298.21  process described in this section at least twice each biennium 
298.22  and up to four times each biennium, according to dates 
298.23  established by rule.  Authorized funds shall be allocated 
298.24  proportionally to the number of processes.  Funds not encumbered 
298.25  by an earlier process within a biennium shall carry forward to 
298.26  subsequent iterations of the process.  Authorization for 
298.27  expenditures does not carry forward into the following 
298.28  biennium.  To be considered for approval, a proposal must 
298.29  include the following information: 
298.30     (1) whether the request is for renovation, replacement, 
298.31  upgrading, conversion, or relocation; 
298.32     (2) a description of the problem the project is designed to 
298.33  address; 
298.34     (3) a description of the proposed project; 
298.35     (4) an analysis of projected costs of the nursing facility 
298.36  proposal, which are not required to exceed the cost threshold 
299.1   referred to in section 144A.071, subdivision 1, to be considered 
299.2   under this section, including initial construction and 
299.3   remodeling costs; site preparation costs; technology costs; 
299.4   financing costs, including the current estimated long-term 
299.5   financing costs of the proposal, which consists of estimates of 
299.6   the amount and sources of money, reserves if required under the 
299.7   proposed funding mechanism, annual payments schedule, interest 
299.8   rates, length of term, closing costs and fees, insurance costs, 
299.9   and any completed marketing study or underwriting review; and 
299.10  estimated operating costs during the first two years after 
299.11  completion of the project; 
299.12     (5) for proposals involving replacement of all or part of a 
299.13  facility, the proposed location of the replacement facility and 
299.14  an estimate of the cost of addressing the problem through 
299.15  renovation; 
299.16     (6) for proposals involving renovation, an estimate of the 
299.17  cost of addressing the problem through replacement; 
299.18     (7) the proposed timetable for commencing construction and 
299.19  completing the project; 
299.20     (8) a statement of any licensure or certification issues, 
299.21  such as certification survey deficiencies; 
299.22     (9) the proposed relocation plan for current residents if 
299.23  beds are to be closed so that the department of human services 
299.24  can estimate the total costs of a proposal; and 
299.25     (10) other information required by permanent rule of the 
299.26  commissioner of health in accordance with subdivisions 4 and 8. 
299.27     Sec. 7.  Minnesota Statutes 2000, section 144A.073, 
299.28  subdivision 4, is amended to read: 
299.29     Subd. 4.  [CRITERIA FOR REVIEW.] The following criteria 
299.30  shall be used in a consistent manner to compare, evaluate, and 
299.31  rank all proposals submitted.  Except for the criteria specified 
299.32  in clause (3), the application of criteria listed under this 
299.33  subdivision shall not reflect any distinction based on the 
299.34  geographic location of the proposed project: 
299.35     (1) the extent to which the proposal furthers state 
299.36  long-term care goals, including the goals stated in section 
300.1   144A.31, and including the goal of enhancing the availability 
300.2   and use of alternative care services and the goal of reducing 
300.3   the number of long-term care resident rooms with more than two 
300.4   beds; 
300.5      (2) the proposal's long-term effects on state costs 
300.6   including the cost estimate of the project according to section 
300.7   144A.071, subdivision 5a; 
300.8      (3) the extent to which the proposal promotes equitable 
300.9   access to long-term care services in nursing homes through 
300.10  redistribution of the nursing home bed supply, as measured by 
300.11  the number of beds relative to the population 85 or older, 
300.12  projected to the year 2000 by the state demographer, and 
300.13  according to items (i) to (iv): 
300.14     (i) reduce beds in counties where the supply is high, 
300.15  relative to the statewide mean, and increase beds in counties 
300.16  where the supply is low, relative to the statewide mean; 
300.17     (ii) adjust the bed supply so as to create the greatest 
300.18  benefits in improving the distribution of beds; 
300.19     (iii) adjust the existing bed supply in counties so that 
300.20  the bed supply in a county moves toward the statewide mean; and 
300.21     (iv) adjust the existing bed supply so that the 
300.22  distribution of beds as projected for the year 2020 would be 
300.23  consistent with projected need, based on the methodology 
300.24  outlined in the interagency long-term care committee's 1993 
300.25  nursing home bed distribution study; 
300.26     (4) the extent to which the project improves conditions 
300.27  that affect the health or safety of residents, such as narrow 
300.28  corridors, narrow door frames, unenclosed fire exits, and wood 
300.29  frame construction, and similar provisions contained in fire and 
300.30  life safety codes and licensure and certification rules; 
300.31     (5) the extent to which the project improves conditions 
300.32  that affect the comfort or quality of life of residents in a 
300.33  facility or the ability of the facility to provide efficient 
300.34  care, such as a relatively high number of residents in a room; 
300.35  inadequate lighting or ventilation; poor access to bathing or 
300.36  toilet facilities; a lack of available ancillary space for 
301.1   dining rooms, day rooms, or rooms used for other activities; 
301.2   problems relating to heating, cooling, or energy efficiency; 
301.3   inefficient location of nursing stations; narrow corridors; or 
301.4   other provisions contained in the licensure and certification 
301.5   rules; 
301.6      (6) the extent to which the applicant demonstrates the 
301.7   delivery of quality care, as defined in state and federal 
301.8   statutes and rules, to residents as evidenced by the two most 
301.9   recent state agency certification surveys and the applicants' 
301.10  response to those surveys; 
301.11     (7) the extent to which the project removes the need for 
301.12  waivers or variances previously granted by either the licensing 
301.13  agency, certifying agency, fire marshal, or local government 
301.14  entity; and 
301.15     (8) the extent to which the project increases the number of 
301.16  private or single bed rooms; and 
301.17     (9) other factors that may be developed in permanent rule 
301.18  by the commissioner of health that evaluate and assess how the 
301.19  proposed project will further promote or protect the health, 
301.20  safety, comfort, treatment, or well-being of the facility's 
301.21  residents. 
301.22     Sec. 8.  [144A.185] [DEFINITIONS.] 
301.23     Subdivision 1.  [APPLICABILITY.] For purposes of sections 
301.24  144A.185 to 144A.1887, the terms defined in this section have 
301.25  the meanings given them.  
301.26     Subd. 2.  [CLOSURE.] "Closure" means the cessation of 
301.27  operations of a nursing home and the delicensure or 
301.28  decertification of all beds within the facility.  
301.29     Subd. 3.  [CURTAILMENT, REDUCTION, OR CHANGE IN 
301.30  OPERATIONS.] "Curtailment, reduction, or change in operations" 
301.31  means any change in operations or services that would result in 
301.32  or encourage the relocation of residents. 
301.33     Subd. 4.  [FACILITY.] "Facility" means a licensed nursing 
301.34  home or a certified boarding care home licensed according to 
301.35  sections 144.50 to 144.56. 
301.36     Subd. 5.  [LICENSEE.] "Licensee" means the owner of the 
302.1   facility or the owner's designee or the commissioner of health 
302.2   for a facility in receivership. 
302.3      Subd. 6.  [LOCAL AGENCY.] "Local agency" means a county or 
302.4   a multicounty social service agency authorized under section 
302.5   393.01 as the agency responsible for providing social services 
302.6   for the county in which the facility is located.  
302.7      Subd. 7.  [PLAN.] "Plan" means a process developed under 
302.8   section 144A.186 for the closure or curtailment, reduction, or 
302.9   change in operations of a facility and for the subsequent 
302.10  relocation of residents.  
302.11     Subd. 8.  [RELOCATION.] "Relocation" means the discharge of 
302.12  a resident and movement of the resident to another facility or 
302.13  living arrangement as a result of a closure or curtailment, 
302.14  reduction, or change in operations of a facility. 
302.15     Sec. 9.  [144A.1855] [INITIAL NOTICE.] 
302.16     Subdivision 1.  [NOTIFICATION; PARTIES.] A licensee shall 
302.17  notify the following parties in writing when there is an intent 
302.18  to close or curtail, reduce, or change operations which would 
302.19  result in or encourage the relocation of residents:  
302.20     (1) the commissioner of health; 
302.21     (2) the commissioner of human services; 
302.22     (3) the local agency; 
302.23     (4) the office of the ombudsman for older Minnesotans; and 
302.24     (5) the office of the ombudsman for mental health and 
302.25  mental retardation.  
302.26     Subd. 2.  [NOTICE REQUIREMENTS.] The written notice shall 
302.27  include the names, telephone numbers, fax numbers, and e-mail 
302.28  addresses of the persons in the facility who are responsible for 
302.29  coordinating the facility's efforts in the planning process and 
302.30  the number of residents potentially affected by the closure or 
302.31  curtailment, reduction, or change in operations.  
302.32     Sec. 10.  [144A.186] [PLANNING PROCESS.] 
302.33     Subdivision 1.  [LOCAL AGENCY REQUIREMENTS.] (a) A local 
302.34  agency, within five working days of receiving an initial notice 
302.35  from a licensee according to section 144A.1855, shall provide 
302.36  all parties identified in section 144A.1855, subdivision 1, with 
303.1   the names, telephone numbers, fax numbers, and e-mail addresses 
303.2   of those persons who are responsible for coordinating local 
303.3   agency efforts in the planning process. 
303.4      (b) Within ten working days of receipt of the notice under 
303.5   paragraph (a), the local agency and licensee shall meet to 
303.6   develop the relocation plan under subdivision 2.  The local 
303.7   agency shall inform the departments of health and human 
303.8   services, the office of the ombudsman for older Minnesotans, and 
303.9   the office of the ombudsman for mental health and mental 
303.10  retardation of the date, time, and location of the meeting so 
303.11  that their representatives may attend.  The relocation plan must 
303.12  be completed within 45 days, but may be completed earlier 
303.13  according to a schedule agreed to by all parties. 
303.14     Subd. 2.  [RELOCATION PLAN.] (a) The plan shall: 
303.15     (1) identify the expected date of closure or curtailment, 
303.16  reduction, or change in operations; 
303.17     (2) outline the process for public notification of the 
303.18  closure or curtailment, reduction, or change in operations; 
303.19     (3) outline the process to ensure 60-day advance written 
303.20  notice to residents, family members, and designated 
303.21  representatives of residents; 
303.22     (4) present an aggregate description of the resident 
303.23  population remaining to be relocated and the population's needs; 
303.24     (5) outline the individual resident assessment process to 
303.25  be used; 
303.26     (6) identify an inventory of available relocation options, 
303.27  including home and community-based services; 
303.28     (7) identify a timeline for submission of the list required 
303.29  under section 144A.1865, subdivision 3; and 
303.30     (8) identify a schedule for each element of the plan.  
303.31     (b) All parties to the plan shall refrain from any public 
303.32  notification of the intent to close or curtail, reduce, or 
303.33  change operations until a relocation plan has been established.  
303.34     Sec. 11.  [144A.1865] [REQUIREMENTS OF LICENSEE.] 
303.35     Subdivision 1.  [RELOCATION.] The licensee shall provide 
303.36  for the safe, orderly, and appropriate relocation of residents.  
304.1   The licensee and facility staff shall cooperate with 
304.2   representatives from the local agency, the departments of health 
304.3   and human services, the office of the ombudsman for older 
304.4   Minnesotans, and the office of the ombudsman for mental health 
304.5   and mental retardation in planning for and implementing the 
304.6   relocation of residents.  
304.7      Subd. 2.  [INTERDISCIPLINARY TEAM.] The licensee shall 
304.8   establish an interdisciplinary team responsible for coordinating 
304.9   and implementing the plan under section 144A.186, subdivision 
304.10  2.  The interdisciplinary team shall include representatives 
304.11  from the local agency, the office of the ombudsman for older 
304.12  Minnesotans, facility staff who provide direct care services to 
304.13  the residents, and the facility administration.  
304.14     Subd. 3.  [RESIDENT LISTS.] The licensee shall provide a 
304.15  list to the local agency that includes the following information 
304.16  on each resident to be relocated:  
304.17     (1) name; 
304.18     (2) date of birth; 
304.19     (3) social security number; 
304.20     (4) medical assistance ID number; 
304.21     (5) all diagnoses; and 
304.22     (6) name of and contact information for the resident's 
304.23  family or other designated representative.  
304.24     Subd. 4.  [CONSULTATION WITH LOCAL AGENCY.] The licensee 
304.25  shall consult with the local agency on the availability and 
304.26  development of resources and in the resident relocation process. 
304.27     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
304.28  following final enactment. 
304.29     Sec. 12.  [144A.187] [RESIDENT AND PHYSICIAN NOTICE.] 
304.30     Subdivision 1.  [RESIDENT NOTICE REQUIRED.] (a) At least 60 
304.31  days before the proposed date of closure or curtailment, 
304.32  reduction, or change in operations as agreed to in the plan 
304.33  under section 144A.186, the licensee shall send a written notice 
304.34  of closure or curtailment, reduction, or change in operations to 
304.35  each resident being relocated, the resident's family member or 
304.36  designated representative, and the resident's attending 
305.1   physician. 
305.2      (b) The notice must include: 
305.3      (1) the date of the proposed closure or curtailment, 
305.4   reduction, or change in operations; 
305.5      (2) the name, address, telephone number, fax number, and 
305.6   e-mail address of the individuals in the facility responsible 
305.7   for providing assistance and information; 
305.8      (3) a notice of upcoming meetings for residents, families 
305.9   and designated representatives, and resident and family councils 
305.10  to discuss the relocation of residents; 
305.11     (4) the name, address, and telephone number of the local 
305.12  agency contact person; 
305.13     (5) the name, address, and telephone number of the office 
305.14  of the ombudsman for older Minnesotans and the office of the 
305.15  ombudsman for mental health and mental retardation; and 
305.16     (6) a notice of resident rights during discharge and 
305.17  relocation. 
305.18     (c) The notice to residents must comply with all applicable 
305.19  state and federal requirements for notice of transfer or 
305.20  discharge of nursing home residents.  
305.21     Subd. 2.  [MEDICAL INFORMATION REQUEST.] The licensee shall 
305.22  request the attending physician to furnish the licensee with, or 
305.23  arrange for the release of, any medical information needed to 
305.24  update a resident's medical records and to prepare transfer 
305.25  forms and discharge summaries.  
305.26     Sec. 13.  [144A.1875] [RELOCATION OF RESIDENTS.] 
305.27     Subdivision 1.  [PREPARATION; PLACEMENT INFORMATION.] A 
305.28  licensee shall provide sufficient preparation to residents to 
305.29  ensure safe, orderly, and appropriate discharge and relocation.  
305.30  The facility is responsible for assisting residents in finding 
305.31  placement within the resident's desired geographic location 
305.32  using the Senior LinkAge database of the department of human 
305.33  services.  By January 1, 2002, Senior LinkAge line shall make 
305.34  available via a Web site the name, address, and telephone and 
305.35  fax numbers of each facility with available beds, the 
305.36  certification level of the available beds, the types of services 
306.1   available, and the number of beds that are available as updated 
306.2   daily by the licensee.  The Web site shall include the 
306.3   information required by section 256.975, subdivision 7, 
306.4   paragraph (b), clause (1), and home and community-based services 
306.5   and other options for individuals with special needs.  The 
306.6   licensee must provide residents, their families or designated 
306.7   representatives, the office of the ombudsman for older 
306.8   Minnesotans, the office of the ombudsman for mental health and 
306.9   mental retardation, and the local agency with the toll-free 
306.10  number and Web site address for the Senior LinkAge line.  
306.11     Subd. 2.  [RESIDENT AND FAMILY MEETINGS.] After preparing 
306.12  the plan according to section 144A.186, the licensee shall 
306.13  conduct meetings with residents, families and designated 
306.14  representatives, and resident and family councils to notify them 
306.15  of the process for resident relocation.  Representatives from 
306.16  the local agency, the office of the ombudsman for older 
306.17  Minnesotans, the office of the ombudsman for mental health and 
306.18  mental retardation, the departments of health and human services 
306.19  shall receive advance notice of these meetings. 
306.20     Subd. 3.  [PERSONAL PROPERTY.] (a) The licensee shall 
306.21  update the inventory of residents' personal possessions and 
306.22  provide a copy of the final inventory to each resident and the 
306.23  resident's family or designated representative prior to the 
306.24  relocation of the resident.  The licensee is responsible for the 
306.25  timely transfer of a resident's possessions for all relocations 
306.26  within the state and within a 50-mile radius of the facility for 
306.27  relocations outside the state. 
306.28     (b) The licensee shall complete a final accounting of 
306.29  personal funds held in trust by the licensee and provide a copy 
306.30  of the accounting to each resident and the resident's family or 
306.31  designated representative.  The licensee is responsible for the 
306.32  timely transfer of all personal funds held in trust by the 
306.33  licensee. 
306.34     Subd. 4.  [SITE VISITS.] The licensee is responsible for 
306.35  assisting residents desiring to make site visits to facilities 
306.36  or other placements to which the resident may be relocated, 
307.1   unless it is medically inadvisable, as documented by the 
307.2   attending physician in the resident's care record.  The licensee 
307.3   shall provide, or make arrangements for, transportation for site 
307.4   visits to facilities or other placements within a 50-mile radius.
307.5      Subd. 5.  [FINAL NOTICE OF RELOCATION.] (a) Before 
307.6   relocating a resident, the licensee shall provide a final 
307.7   written notice to the resident, the resident's family or 
307.8   designated representative, and the resident's attending 
307.9   physician. 
307.10     (b) The final written notice shall: 
307.11     (1) be provided seven days before the relocation of a 
307.12  resident, unless the resident agrees to waive the resident's 
307.13  right to advance notice; and 
307.14     (2) identify the date of the anticipated relocation and the 
307.15  location to which the resident is being relocated.  
307.16     Subd. 6.  [ADMINISTRATIVE DUTIES.] (a) All administrative 
307.17  duties of the licensee under subdivisions 1, 2, 4, and 5 must be 
307.18  completed before relocation of a resident.  
307.19     (b) The licensee is responsible for providing the receiving 
307.20  facility or other health, housing, or care entity with a 
307.21  complete and accurate resident record, including information on 
307.22  family members, designated representatives, guardians, social 
307.23  service caseworkers, and other contact information.  The record 
307.24  must also include all information necessary to provide 
307.25  appropriate medical care and social services, including, but not 
307.26  limited to, information on preadmission screening, Level I and 
307.27  Level II screening, minimum data set and all other assessments, 
307.28  resident diagnosis, behavior, and medication.  
307.29     (c) For residents with special care needs, the licensee 
307.30  shall consult with the receiving facility or other placement 
307.31  entity and provide staff training or other preparation as needed 
307.32  to assist in providing for the special needs.  
307.33     (d) The licensee shall assist residents with the transfer 
307.34  or reconnection of telephone service.  The licensee shall bear 
307.35  all costs associated with reestablishing telephone service.  
307.36     Subd. 7.  [TRANSPORTATION; CONTINUITY OF CARE.] The 
308.1   licensee shall make arrangements or provide for the 
308.2   transportation of residents to the new facility or placement 
308.3   within the state or within a 50-mile radius for relocations 
308.4   outside the state.  The licensee shall provide a staff person to 
308.5   accompany the resident during transportation, upon request of 
308.6   the resident, the resident's family, or designated 
308.7   representative.  The discharge and relocation of residents must 
308.8   comply with all applicable state and federal requirements and 
308.9   must be conducted in a safe, orderly, and appropriate manner.  
308.10  The licensee must ensure that there is no disruption in 
308.11  providing meals, medications, or treatments of a resident during 
308.12  the relocation process.  
308.13     Sec. 14.  [144A.1885] [RELOCATION REPORTS.] 
308.14     (a) Beginning the week following development of the initial 
308.15  relocation plan under section 144A.186, the licensee shall 
308.16  submit weekly status reports to the commissioners of health and 
308.17  human services, or their designees, and to the local agency. 
308.18     (b) The first status report must identify the relocation 
308.19  plan developed under section 144A.186, the interdisciplinary 
308.20  team members, and the number of residents to be relocated.  
308.21     (c) Subsequent status reports must note any modifications 
308.22  to the relocation plan, any change of interdisciplinary team 
308.23  members or number of residents relocated, the placement 
308.24  destination to which residents have been relocated, and the 
308.25  number of residents remaining to be relocated.  Subsequent 
308.26  status reports must also identify issues or problems encountered 
308.27  during the relocation process and the resolution of these issues.
308.28     Sec. 15.  [144A.1886] [REQUIREMENTS OF LOCAL AGENCY.] 
308.29     Subdivision 1.  [MEETING; REPRESENTATION.] (a) The local 
308.30  agency with the licensee shall convene a meeting to develop a 
308.31  plan according to section 144A.186, subdivision 1, paragraph (b).
308.32     (b) The local agency shall designate a representative to 
308.33  the interdisciplinary team established by the licensee 
308.34  responsible for coordinating the relocation efforts.  
308.35     Subd. 2.  [RESOURCE.] (a) The local agency shall serve as a 
308.36  resource in the relocation process.  
309.1      (b) Concurrent with the notice sent to residents from the 
309.2   licensee according to section 144A.187, subdivision 1, the local 
309.3   agency shall provide written notice to residents, family 
309.4   members, and designated representatives describing: 
309.5      (1) the local agency's role in the relocation process and 
309.6   in the follow-up to relocation; 
309.7      (2) a local agency contact name, address, and telephone 
309.8   number; and 
309.9      (3) the name, address, and telephone number of the office 
309.10  of the ombudsman for older Minnesotans and the office of the 
309.11  ombudsman for mental health and mental retardation.  
309.12     (c) The local agency is responsible for the safe and 
309.13  orderly relocation of residents in cases where an emergent need 
309.14  arises or when the licensee has abrogated the licensee's 
309.15  responsibilities under the relocation plan.  
309.16     Subd. 3.  [COORDINATION; OVERSIGHT.] (a) The local agency 
309.17  shall meet with appropriate facility staff to coordinate any 
309.18  assistance.  Coordination shall include participating in group 
309.19  meetings with residents, family members, and designated 
309.20  representatives to explain the transfer or relocation process.  
309.21     (b) The local agency shall monitor compliance with all 
309.22  components of the relocation plan.  When the licensee is not in 
309.23  compliance, the local agency shall notify the commissioners of 
309.24  health and human services.  
309.25     (c) Except as requested by the resident, family member, or 
309.26  designated representative and within the parameters of the 
309.27  Vulnerable Adults Act, the local agency may halt a relocation 
309.28  that it deems inappropriate or dangerous to the health or safety 
309.29  of a resident. 
309.30     Subd. 4.  [FOLLOW-UP REVIEW.] (a) A member of the local 
309.31  agency staff shall visit residents relocated within 100 miles of 
309.32  the county within 30 days after a relocation.  Local agency 
309.33  staff shall interview the resident and family member or 
309.34  designated representative or shall observe the resident on-site, 
309.35  or both, and review and discuss pertinent medical or social 
309.36  records with appropriate facility staff to assess the adjustment 
310.1   of the resident to the new placement, recommend services or 
310.2   methods to meet any special needs of the resident, and identify 
310.3   residents at risk.  
310.4      (b) The local agency may conduct subsequent follow-up 
310.5   visits in cases where the adjustment of the resident to the new 
310.6   placement is in question.  
310.7      (c) Within 60 days of the completion of the follow-up 
310.8   visits, the local agency shall submit a written summary of the 
310.9   follow-up work to the commissioners of health and human 
310.10  services, in a manner approved by the commissioners.  
310.11     (d) The local agency shall submit a report of any issues 
310.12  that may require further review or monitoring to the 
310.13  commissioner of health. 
310.14     Sec. 16.  [144A.1887] [FUNDING.] 
310.15     (a) Within 60 days of a nursing home ceasing operations, 
310.16  the commissioner of human services shall reimburse nursing homes 
310.17  that are reimbursed under sections 256B.431, 256B.434, and 
310.18  256B.435 for operating costs incurred by the nursing home during 
310.19  the closure process.  The amount to be reimbursed to the nursing 
310.20  home shall be determined by applying paragraphs (b) to (f). 
310.21     (b) The facility shall provide the commissioner of human 
310.22  services with the nursing home's operating costs for the time 
310.23  period of 30 days prior to the notice specified under section 
310.24  144A.16, to 30 days after the nursing home's closure. 
310.25     (c) The nursing home shall provide the commissioner of 
310.26  human services with the number of medical assistance, Medicare, 
310.27  private pay, and other resident days for the period referenced 
310.28  in paragraph (b) by the 11 case mix categories. 
310.29     (d) The commissioner of human services shall calculate a 
310.30  nursing home closure rate by dividing the facility operating 
310.31  costs in paragraph (b) by the total resident days in paragraph 
310.32  (c). 
310.33     (e) The total closure costs attributable to medical 
310.34  assistance shall be determined by multiplying the nursing home 
310.35  closure rate in paragraph (d) by the medical assistance days 
310.36  provided by the nursing facility in paragraph (c). 
311.1      (f) The amount to be reimbursed to the nursing home is 
311.2   equal to the total closure costs in paragraph (e) minus the sum 
311.3   of the nursing facility's 11 operating rates times their 
311.4   respective number of medical assistance days by case mix as 
311.5   referenced in paragraph (c). 
311.6      Sec. 17.  [144A.36] [TRANSITION PLANNING GRANTS.] 
311.7      Subdivision 1.  [DEFINITIONS.] "Eligible nursing home" 
311.8   means any nursing home licensed under sections 144A.01 to 
311.9   144A.16 and certified by the appropriate authority under United 
311.10  States Code, title 42, sections 1396-1396p, to participate as a 
311.11  vendor in the medical assistance program established under 
311.12  chapter 256B. 
311.13     Subd. 2.  [GRANTS AUTHORIZED.] (a) The commissioner shall 
311.14  establish a program of transition planning grants to assist 
311.15  eligible nursing homes in implementing the provisions in 
311.16  paragraphs (b) and (c).  
311.17     (b) Transition planning grants may be used by nursing homes 
311.18  to develop strategic plans which identify the appropriate 
311.19  institutional and noninstitutional settings necessary to meet 
311.20  the older adult service needs of the community.  
311.21     (c) At a minimum, a strategic plan must consist of: 
311.22     (1) a needs assessment to determine what older adult 
311.23  services are needed and desired by the community; 
311.24     (2) an assessment of the appropriate settings in which to 
311.25  provide needed older adult services; 
311.26     (3) an assessment identifying currently available services 
311.27  and their settings in the community; and 
311.28     (4) a transition plan to achieve the needed outcome 
311.29  identified by the assessment. 
311.30     Subd. 3.  [ALLOCATION OF GRANTS.] (a) Eligible nursing 
311.31  homes must apply to the commissioner no later than September 1 
311.32  of each fiscal year for grants awarded in that fiscal year.  A 
311.33  grant shall be awarded upon signing of a grant contract. 
311.34     (b) The commissioner must make a final decision on the 
311.35  funding of each application within 60 days of the deadline for 
311.36  receiving applications. 
312.1      Subd. 4.  [EVALUATION.] The commissioner shall evaluate the 
312.2   overall effectiveness of the grant program.  The commissioner 
312.3   may collect, from the nursing homes receiving grants, the 
312.4   information necessary to evaluate the grant program.  
312.5   Information related to the financial condition of individual 
312.6   nursing homes shall be classified as nonpublic data. 
312.7      Sec. 18.  [144A.37] [ALTERNATIVE NURSING HOME SURVEY 
312.8   PROCESS.] 
312.9      Subdivision 1.  [ALTERNATIVE NURSING HOME SURVEY 
312.10  SCHEDULES.] (a) The commissioner of health shall implement 
312.11  alternative procedures for the nursing home survey process as 
312.12  authorized under this section.  
312.13     (b) These alternative survey process procedures seek to:  
312.14  (1) use department resources more effectively and efficiently to 
312.15  target problem areas; (2) use other existing or new mechanisms 
312.16  to provide objective assessments of quality and to measure 
312.17  quality improvement; (3) provide for frequent collaborative 
312.18  interaction of facility staff and surveyors rather than a 
312.19  punitive approach; and (4) reward a nursing home that has 
312.20  performed very well by extending intervals between full surveys. 
312.21     (c) The commissioner shall pursue changes in federal law 
312.22  necessary to accomplish this process and shall apply for any 
312.23  necessary federal waivers or approval.  If a federal waiver is 
312.24  approved, the commissioner shall promptly submit, to the house 
312.25  and senate committees with jurisdiction over health and human 
312.26  services policy and finance, fiscal estimates for implementing 
312.27  the alternative survey process waiver.  The commissioner shall 
312.28  also pursue any necessary federal law changes during the 107th 
312.29  Congress. 
312.30     (d) The alternative nursing home survey schedule and 
312.31  related educational activities shall not be implemented until 
312.32  funding is appropriated by the legislature. 
312.33     Subd. 2.  [SURVEY INTERVALS.] The commissioner of health 
312.34  must extend the time period between standard surveys up to 30 
312.35  months based on the criteria established in subdivision 4.  In 
312.36  using the alternative survey schedule, the requirement for the 
313.1   statewide average to not exceed 12 months does not apply. 
313.2      Subd. 3.  [COMPLIANCE HISTORY.] The commissioner shall 
313.3   develop a process for identifying the survey cycles for skilled 
313.4   nursing facilities based upon the compliance history of the 
313.5   facility.  This process can use a range of months for survey 
313.6   intervals.  At a minimum, the process must be based on 
313.7   information from the last two survey cycles and shall take into 
313.8   consideration any deficiencies issued as the result of a survey 
313.9   or a complaint investigation during the interval.  A skilled 
313.10  nursing facility with a finding of substandard quality of care 
313.11  or a finding of immediate jeopardy is not entitled to a survey 
313.12  interval greater than 12 months.  The commissioner shall alter 
313.13  the survey cycle for a specific skilled nursing facility based 
313.14  on findings identified through the completion of a survey, a 
313.15  monitoring visit, or a complaint investigation.  The 
313.16  commissioner must also take into consideration information other 
313.17  than the facility's compliance history. 
313.18     Subd. 4.  [CRITERIA FOR SURVEY INTERVAL 
313.19  CLASSIFICATION.] (a) The commissioner shall provide public 
313.20  notice of the classification process and shall identify the 
313.21  selected survey cycles for each skilled nursing facility.  The 
313.22  classification system must be based on an analysis of the 
313.23  findings made during the past two standard survey intervals, but 
313.24  it only takes one survey or complaint finding to modify the 
313.25  interval. 
313.26     (b) The commissioner shall also take into consideration 
313.27  information obtained from residents and family members in each 
313.28  skilled nursing facility and from other sources such as 
313.29  employees and ombudsmen in determining the appropriate survey 
313.30  intervals for facilities. 
313.31     Subd. 5.  [REQUIRED MONITORING.] (a) The commissioner shall 
313.32  conduct at least one monitoring visit on an annual basis for 
313.33  every skilled nursing facility which has been selected for a 
313.34  survey cycle greater than 12 months.  The commissioner shall 
313.35  develop protocols for the monitoring visits which shall be less 
313.36  extensive than the requirements for a standard survey.  The 
314.1   commissioner shall use the criteria in paragraph (b) to 
314.2   determine whether additional monitoring visits to a facility 
314.3   will be required.  
314.4      (b) The criteria shall include, but not be limited to, the 
314.5   following: 
314.6      (1) changes in ownership, administration of the facility, 
314.7   or direction of the facility's nursing service; 
314.8      (2) changes in the facility's quality indicators which 
314.9   might evidence a decline in the facility's quality of care; 
314.10     (3) reductions in staffing or an increase in the 
314.11  utilization of temporary nursing personnel; and 
314.12     (4) complaint information or other information that 
314.13  identifies potential concerns for the quality of the care and 
314.14  services provided in the skilled nursing facility. 
314.15     Subd. 6.  [SURVEY REQUIREMENTS FOR FACILITIES NOT APPROVED 
314.16  FOR EXTENDED SURVEY INTERVALS.] The commissioner shall establish 
314.17  a process for surveying and monitoring of facilities which 
314.18  require a survey interval of less than 15 months.  This 
314.19  information shall identify the steps that the commissioner must 
314.20  take to monitor the facility in addition to the standard survey. 
314.21     Subd. 7.  [IMPACT ON SURVEY AGENCY'S BUDGET.] The 
314.22  implementation of an alternative survey process for the state 
314.23  must not result in any reduction of funding that would have been 
314.24  provided to the state survey agency for survey and enforcement 
314.25  activity based upon the completion of full standard surveys for 
314.26  each skilled nursing facility in the state. 
314.27     Subd. 8.  [EDUCATIONAL ACTIVITIES.] The commissioner shall 
314.28  expand the state survey agency's ability to conduct training and 
314.29  educational efforts for skilled nursing facilities, residents 
314.30  and family members, residents and family councils, long-term 
314.31  care ombudsman programs, and the general public. 
314.32     Subd. 9.  [EVALUATION.] The commissioner shall develop a 
314.33  process for the evaluation of the effectiveness of an 
314.34  alternative survey process conducted under this section. 
314.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
314.36  following final enactment. 
315.1      Sec. 19.  [144A.38] [INNOVATIONS IN QUALITY DEMONSTRATION 
315.2   GRANTS.] 
315.3      Subdivision 1.  [PROGRAM ESTABLISHED.] The commissioner of 
315.4   health and the commissioner of human services shall establish a 
315.5   long-term care grant program that demonstrates best practices 
315.6   and innovation for long-term care service delivery and housing.  
315.7   The grants must fund demonstrations that create new means and 
315.8   models for serving the elderly or demonstrate creativity in 
315.9   service provision through the scope of their program or service. 
315.10     Subd. 2.  [ELIGIBILITY.] Grants may only be made to those 
315.11  who provide direct service or housing to the elderly within the 
315.12  state.  Grants may only be made for projects that show 
315.13  innovations and measurable improvement in resident care, quality 
315.14  of life, use of technology, or customer satisfaction. 
315.15     Subd. 3.  [AWARDING OF GRANTS.] (a) Applications for grants 
315.16  must be made to the commissioners on forms prescribed by the 
315.17  commissioners. 
315.18     (b) The commissioners shall review applications and award 
315.19  grants based on the following criteria: 
315.20     (1) improvement in direct care to residents; 
315.21     (2) increase in efficiency through the use of technology; 
315.22     (3) increase in quality of care through the use of 
315.23  technology; 
315.24     (4) increase in the access and delivery of service; 
315.25     (5) enhancement of nursing staff training; 
315.26     (6) the effectiveness of the project as a demonstration; 
315.27  and 
315.28     (7) the immediate transferability of the project to scale. 
315.29     (c) In reviewing applications and awarding grants, the 
315.30  commissioners shall consult with long-term care providers, 
315.31  consumers of long-term care, long-term care researchers, and 
315.32  staff of other state agencies. 
315.33     (d) Grants for eligible projects may not exceed $100,000. 
315.34     Sec. 20.  [144A.39] [LONG-TERM CARE QUALITY PROFILES.] 
315.35     Subdivision l.  [DEVELOPMENT AND IMPLEMENTATION OF QUALITY 
315.36  PROFILES.] (a) The commissioner of health and the commissioner 
316.1   of human services shall develop and implement a quality profile 
316.2   system for nursing facilities and, beginning not later than July 
316.3   1, 2003, other providers of long-term care services, except when 
316.4   the quality profile system would duplicate requirements under 
316.5   sections 256B.5011 and 256B.5013.  The system must be developed 
316.6   and implemented to the extent possible without the collection of 
316.7   new data.  To the extent possible, the system must incorporate 
316.8   or be coordinated with information on quality maintained by area 
316.9   agencies on aging, long-term care trade associations, and other 
316.10  entities.  The system must be designed to provide information on 
316.11  quality: 
316.12     (1) to consumers and their families to facilitate informed 
316.13  choices of service providers; 
316.14     (2) to providers to enable them to measure the results of 
316.15  their quality improvement efforts and compare quality 
316.16  achievements with other service providers; and 
316.17     (3) to public and private purchasers of long-term care 
316.18  services to enable them to purchase high-quality care. 
316.19     (b) The system must be developed in consultation with the 
316.20  long-term care task force, area agencies on aging, and 
316.21  representatives of consumers, providers, and labor unions.  
316.22  Within the limits of available appropriations, the commissioners 
316.23  may employ consultants to assist with this project. 
316.24     Subd. 2.  [QUALITY MEASUREMENT TOOLS.] The commissioners 
316.25  shall identify and apply existing quality measurement tools to: 
316.26     (1) emphasize quality of care and its relationship to 
316.27  quality of life; and 
316.28     (2) address the needs of various users of long-term care 
316.29  services, including, but not limited to, short-stay residents, 
316.30  persons with behavioral problems, persons with dementia, and 
316.31  persons who are members of minority groups. 
316.32  The tools must be identified and applied, to the extent 
316.33  possible, without requiring providers to supply information 
316.34  beyond current state and federal requirements. 
316.35     Subd. 3.  [CONSUMER SURVEYS.] Following identification of 
316.36  the quality measurement tool, the commissioners shall conduct 
317.1   surveys of long-term care service consumers to develop quality 
317.2   profiles of providers.  To the extent possible, surveys must be 
317.3   conducted face-to-face by state employees or contractors.  At 
317.4   the discretion of the commissioners, surveys may be conducted by 
317.5   telephone or by provider staff.  Surveys must be conducted 
317.6   periodically to update quality profiles of individual service 
317.7   providers. 
317.8      Subd. 4.  [DISSEMINATION OF QUALITY PROFILES.] By July 1, 
317.9   2002, the commissioners shall implement a system to disseminate 
317.10  the quality profiles developed from consumer surveys using the 
317.11  quality measurement tool.  Profiles must be disseminated to the 
317.12  Senior LinkAge line and to consumers, providers, and purchasers 
317.13  of long-term care services through all feasible printed and 
317.14  electronic outlets.  The commissioners shall conduct a public 
317.15  awareness campaign to inform potential users regarding profile 
317.16  contents and potential uses. 
317.17     Sec. 21.  Minnesota Statutes 2000, section 256B.431, 
317.18  subdivision 17, is amended to read: 
317.19     Subd. 17.  [SPECIAL PROVISIONS FOR MORATORIUM EXCEPTIONS.] 
317.20  (a) Notwithstanding Minnesota Rules, part 9549.0060, subpart 3, 
317.21  for rate periods beginning on October 1, 1992, and for rate 
317.22  years beginning after June 30, 1993, a nursing facility that (1) 
317.23  has completed a construction project approved under section 
317.24  144A.071, subdivision 4a, clause (m); (2) has completed a 
317.25  construction project approved under section 144A.071, 
317.26  subdivision 4a, and effective after June 30, 1995; or (3) has 
317.27  completed a renovation, replacement, or upgrading project 
317.28  approved under the moratorium exception process in section 
317.29  144A.073 shall be reimbursed for costs directly identified to 
317.30  that project as provided in subdivision 16 and this subdivision. 
317.31     (b) Notwithstanding Minnesota Rules, part 9549.0060, 
317.32  subparts 5, item A, subitems (1) and (3), and 7, item D, 
317.33  allowable interest expense on debt shall include: 
317.34     (1) interest expense on debt related to the cost of 
317.35  purchasing or replacing depreciable equipment, excluding 
317.36  vehicles, not to exceed six percent of the total historical cost 
318.1   of the project; and 
318.2      (2) interest expense on debt related to financing or 
318.3   refinancing costs, including costs related to points, loan 
318.4   origination fees, financing charges, legal fees, and title 
318.5   searches; and issuance costs including bond discounts, bond 
318.6   counsel, underwriter's counsel, corporate counsel, printing, and 
318.7   financial forecasts.  Allowable debt related to items in this 
318.8   clause shall not exceed seven percent of the total historical 
318.9   cost of the project.  To the extent these costs are financed, 
318.10  the straight-line amortization of the costs in this clause is 
318.11  not an allowable cost; and 
318.12     (3) interest on debt incurred for the establishment of a 
318.13  debt reserve fund, net of the interest earned on the debt 
318.14  reserve fund. 
318.15     (c) Debt incurred for costs under paragraph (b) is not 
318.16  subject to Minnesota Rules, part 9549.0060, subpart 5, item A, 
318.17  subitem (5) or (6). 
318.18     (d) The incremental increase in a nursing facility's rental 
318.19  rate, determined under Minnesota Rules, parts 9549.0010 to 
318.20  9549.0080, and this section, resulting from the acquisition of 
318.21  allowable capital assets, and allowable debt and interest 
318.22  expense under this subdivision shall be added to its 
318.23  property-related payment rate and shall be effective on the 
318.24  first day of the month following the month in which the 
318.25  moratorium project was completed. 
318.26     (e) Notwithstanding subdivision 3f, paragraph (a), for rate 
318.27  periods beginning on October 1, 1992, and for rate years 
318.28  beginning after June 30, 1993, the replacement-costs-new per bed 
318.29  limit to be used in Minnesota Rules, part 9549.0060, subpart 4, 
318.30  item B, for a nursing facility that has completed a renovation, 
318.31  replacement, or upgrading project that has been approved under 
318.32  the moratorium exception process in section 144A.073, or that 
318.33  has completed an addition to or replacement of buildings, 
318.34  attached fixtures, or land improvements for which the total 
318.35  historical cost exceeds the lesser of $150,000 or ten percent of 
318.36  the most recent appraised value, must be $47,500 per licensed 
319.1   bed in multiple-bed rooms and $71,250 per licensed bed in a 
319.2   single-bed room.  These amounts must be adjusted annually as 
319.3   specified in subdivision 3f, paragraph (a), beginning January 1, 
319.4   1993. 
319.5      (f) For purposes of this paragraph, a total replacement 
319.6   means the complete replacement of the nursing facility's 
319.7   physical plant through the construction of a new physical plant, 
319.8   the transfer of the nursing facility's license from one physical 
319.9   plant location to another, or a new building addition to 
319.10  relocate beds from three- and four-bed wards.  For total 
319.11  replacement projects completed on or after July 1, 1992, the 
319.12  commissioner shall compute the incremental change in the nursing 
319.13  facility's rental per diem, for rate years beginning on or after 
319.14  July 1, 1995, by replacing its appraised value, including the 
319.15  historical capital asset costs, and the capital debt and 
319.16  interest costs with the new nursing facility's allowable capital 
319.17  asset costs and the related allowable capital debt and interest 
319.18  costs.  If the new nursing facility has decreased its licensed 
319.19  capacity, the aggregate investment per bed limit in subdivision 
319.20  3a, paragraph (c), shall apply.  If the new nursing facility has 
319.21  retained a portion of the original physical plant for nursing 
319.22  facility usage, then a portion of the appraised value prior to 
319.23  the replacement must be retained and included in the calculation 
319.24  of the incremental change in the nursing facility's rental per 
319.25  diem.  For purposes of this part, the original nursing facility 
319.26  means the nursing facility prior to the total replacement 
319.27  project.  The portion of the appraised value to be retained 
319.28  shall be calculated according to clauses (1) to (3): 
319.29     (1) The numerator of the allocation ratio shall be the 
319.30  square footage of the area in the original physical plant which 
319.31  is being retained for nursing facility usage. 
319.32     (2) The denominator of the allocation ratio shall be the 
319.33  total square footage of the original nursing facility physical 
319.34  plant. 
319.35     (3) Each component of the nursing facility's allowable 
319.36  appraised value prior to the total replacement project shall be 
320.1   multiplied by the allocation ratio developed by dividing clause 
320.2   (1) by clause (2). 
320.3      In the case of either type of total replacement as 
320.4   authorized under section 144A.071 or 144A.073, the provisions of 
320.5   this subdivision shall also apply.  For purposes of the 
320.6   moratorium exception authorized under section 144A.071, 
320.7   subdivision 4a, paragraph (s), if the total replacement involves 
320.8   the renovation and use of an existing health care facility 
320.9   physical plant, the new allowable capital asset costs and 
320.10  related debt and interest costs shall include first the 
320.11  allowable capital asset costs and related debt and interest 
320.12  costs of the renovation, to which shall be added the allowable 
320.13  capital asset costs of the existing physical plant prior to the 
320.14  renovation, and if reported by the facility, the related 
320.15  allowable capital debt and interest costs. 
320.16     (g) Notwithstanding Minnesota Rules, part 9549.0060, 
320.17  subpart 11, item C, subitem (2), for a total replacement, as 
320.18  defined in paragraph (f), authorized under section 144A.071 or 
320.19  144A.073 after July 1, 1999, or any building project that is a 
320.20  relocation, renovation, upgrading, or conversion authorized 
320.21  under section 144A.073, completed on or after July 1, 2001, the 
320.22  replacement-costs-new per bed limit shall be $74,280 per 
320.23  licensed bed in multiple-bed rooms, $92,850 per licensed bed in 
320.24  semiprivate rooms with a fixed partition separating the resident 
320.25  beds, and $111,420 per licensed bed in single rooms.  Minnesota 
320.26  Rules, part 9549.0060, subpart 11, item C, subitem (2), does not 
320.27  apply.  These amounts must be adjusted annually as specified in 
320.28  subdivision 3f, paragraph (a), beginning January 1, 2000.  
320.29     (h) For a total replacement, as defined in paragraph (f), 
320.30  authorized under section 144A.073 for a 96-bed nursing home in 
320.31  Carlton county, the replacement-costs-new per bed limit shall be 
320.32  $74,280 per licensed bed in multiple-bed rooms, $92,850 per 
320.33  licensed bed in semiprivate rooms with a fixed partition 
320.34  separating the resident's beds, and $111,420 per licensed bed in 
320.35  a single room.  Minnesota Rules, part 9549.0060, subpart 11, 
320.36  item C, subitem (2), does not apply.  The resulting maximum 
321.1   allowable replacement-costs-new multiplied by 1.25 shall 
321.2   constitute the project's dollar threshold for purposes of 
321.3   application of the limit set forth in section 144A.071, 
321.4   subdivision 2.  The commissioner of health may waive the 
321.5   requirements of section 144A.073, subdivision 3b, paragraph (b), 
321.6   clause (2), on the condition that the other requirements of that 
321.7   paragraph are met. 
321.8      (i) For a renovation authorized under section 144A.073 for 
321.9   a 65-bed nursing home in St. Louis county, the incremental 
321.10  increase in rental rate for purposes of paragraph (d) shall be 
321.11  $8.16, and the total replacement cost, allowable appraised 
321.12  value, allowable debt, and allowable interest shall be increased 
321.13  according to the incremental increase. 
321.14     (j) For a total replacement, as defined in paragraph (f), 
321.15  authorized under section 144A.073 involving a new building 
321.16  addition that relocates beds from three-bed wards for an 80-bed 
321.17  nursing home in Redwood county, the replacement-costs-new per 
321.18  bed limit shall be $74,280 per licensed bed for multiple-bed 
321.19  rooms; $92,850 per licensed bed for semiprivate rooms with a 
321.20  fixed partition separating the beds; and $111,420 per licensed 
321.21  bed for single rooms.  These amounts shall be adjusted annually, 
321.22  beginning January 1, 2001.  Minnesota Rules, part 9549.0060, 
321.23  subpart 11, item C, subitem (2), does not apply.  The resulting 
321.24  maximum allowable replacement-costs-new multiplied by 1.25 shall 
321.25  constitute the project's dollar threshold for purposes of 
321.26  application of the limit set forth in section 144A.071, 
321.27  subdivision 2.  The commissioner of health may waive the 
321.28  requirements of section 144A.073, subdivision 3b, paragraph (b), 
321.29  clause (2), on the condition that the other requirements of that 
321.30  paragraph are met. 
321.31     Sec. 22.  Minnesota Statutes 2000, section 256B.431, is 
321.32  amended by adding a subdivision to read: 
321.33     Subd. 31.  [PAYMENT DURING FIRST 90 DAYS.] (a) For rate 
321.34  years beginning on or after July 1, 2001, the total payment rate 
321.35  for a facility reimbursed under this section, section 256B.434, 
321.36  or any other section for the first 90 days after admission shall 
322.1   be: 
322.2      (1) for the first 30 paid days, the rate shall be 120 
322.3   percent of the facility's medical assistance rate for each case 
322.4   mix class; and 
322.5      (2) for the next 60 days after the first 30 paid days, the 
322.6   rate shall be 110 percent of the facility's medical assistance 
322.7   rate for each case mix class. 
322.8      (b) Beginning with the 91st paid day after admission, the 
322.9   payment rate shall be the rate otherwise determined under this 
322.10  section, section 256B.434, or any other section. 
322.11     (c) This subdivision applies to admissions occurring on or 
322.12  after July 1, 2001. 
322.13     Sec. 23.  Minnesota Statutes 2000, section 256B.431, is 
322.14  amended by adding a subdivision to read: 
322.15     Subd. 32.  [NURSING FACILITY RATE INCREASES BEGINNING JULY 
322.16  1, 2001, AND JULY 1, 2002.] For the rate years beginning July 1, 
322.17  2001, and July 1, 2002, the commissioner shall make available to 
322.18  each nursing facility reimbursed under this section or section 
322.19  256B.434 an adjustment equal to 3.0 percent of the total 
322.20  operating payment rate.  The operating payment rates in effect 
322.21  on June 30, 2001, and June 30, 2002, respectively, shall include 
322.22  the adjustment in subdivision 2i, paragraph (c). 
322.23     Sec. 24.  Minnesota Statutes 2000, section 256B.431, is 
322.24  amended by adding a subdivision to read: 
322.25     Subd. 33.  [ADDITIONAL INCREASES FOR LOW RATE METROPOLITAN 
322.26  AREA FACILITIES.] After the calculation of the increase for the 
322.27  rate year beginning July 1, 2001, in subdivision 31, the 
322.28  commissioner must provide for special increases to facilities 
322.29  determined to be the lowest rate facilities in state development 
322.30  region 11, as defined in section 462.385.  Within this region, 
322.31  the commissioner shall identify the median nursing facility rate 
322.32  by case mix category for all nursing facilities under section 
322.33  256B.431 or 256B.434.  Nursing home rates that are below the 
322.34  median must be adjusted to the greater of their current rates or 
322.35  98 percent of the region median.  Certified boarding care home 
322.36  rates that are below the median must be adjusted to the greater 
323.1   of their current rates or 90 percent of the region median. 
323.2      Sec. 25.  Minnesota Statutes 2000, section 256B.431, is 
323.3   amended by adding a subdivision to read: 
323.4      Subd. 34.  [RATE FLOOR FOR FACILITIES LOCATED OUTSIDE THE 
323.5   METROPOLITAN AREA.] (a) For the rate year beginning July 1, 
323.6   2001, the commissioner shall adjust operating costs per diem for 
323.7   nursing facilities located outside of state development region 
323.8   11, as defined in section 462.385, reimbursed under this section 
323.9   and sections 256B.434 and 256B.435, as provided in this 
323.10  subdivision. 
323.11     (b) For each nursing facility, the commissioner shall 
323.12  compare the operating costs per diem listed in this paragraph to 
323.13  the operating costs per diem the facility would otherwise 
323.14  receive for the July 1, 2001, rate year after provision of any 
323.15  other rate increases required by this chapter. 
323.16       Case mix classification     Operating costs per diem
323.17                 A                         $ 67.02
323.18                 B                         $ 73.00
323.19                 C                         $ 79.77
323.20                 D                         $ 85.94
323.21                 E                         $ 92.32
323.22                 F                         $ 92.72
323.23                 G                         $ 98.13
323.24                 H                         $108.40
323.25                 I                         $112.03
323.26                 J                         $117.67
323.27                 K                         $129.55
323.28     (c) If a facility's total reimbursement for operating 
323.29  costs, using the case mix classification operating costs per 
323.30  diem listed in paragraph (b), is greater than the total 
323.31  reimbursement for operating costs the facility would otherwise 
323.32  receive, the commissioner shall calculate operating costs per 
323.33  diem for that facility for the rate year beginning July 1, 2001, 
323.34  using the case mix classification operating costs per diem 
323.35  listed in paragraph (b). 
323.36     (d) If a facility's total reimbursement for operating 
324.1   costs, using the case mix classification costs per diem listed 
324.2   in paragraph (b), is less than the total reimbursement for 
324.3   operating costs the facility would otherwise receive, the 
324.4   commissioner shall reimburse that facility for the rate year 
324.5   beginning July 1, 2001, as provided in this section, section 
324.6   256B.434, or 256B.435, whichever is applicable, and shall not 
324.7   calculate operating costs per diem for that facility using the 
324.8   case mix classification operating costs per diem listed in 
324.9   paragraph (b). 
324.10     Sec. 26.  Minnesota Statutes 2000, section 256B.431, is 
324.11  amended by adding a subdivision to read: 
324.12     Subd. 35.  [EXCLUSION OF RAW FOOD COST ADJUSTMENT.] For 
324.13  rate years beginning on or after July 1, 2001, in calculating a 
324.14  nursing facility's operating cost per diem for the purposes of 
324.15  constructing an array of nursing facility payment rates to be 
324.16  used to determine future rate increases under this section, 
324.17  section 256B.434, or any other section, the commissioner shall 
324.18  exclude adjustments for raw food costs under subdivision 2b, 
324.19  paragraph (h), that are related to providing special diets based 
324.20  on religious beliefs. 
324.21     Sec. 27.  Minnesota Statutes 2000, section 256B.434, 
324.22  subdivision 4, is amended to read: 
324.23     Subd. 4.  [ALTERNATE RATES FOR NURSING FACILITIES.] (a) For 
324.24  nursing facilities which have their payment rates determined 
324.25  under this section rather than section 256B.431, the 
324.26  commissioner shall establish a rate under this subdivision.  The 
324.27  nursing facility must enter into a written contract with the 
324.28  commissioner. 
324.29     (b) A nursing facility's case mix payment rate for the 
324.30  first rate year of a facility's contract under this section is 
324.31  the payment rate the facility would have received under section 
324.32  256B.431. 
324.33     (c) A nursing facility's case mix payment rates for the 
324.34  second and subsequent years of a facility's contract under this 
324.35  section are the previous rate year's contract payment rates plus 
324.36  an inflation adjustment and an adjustment to include the cost of 
325.1   any increase in health department licensing fees for the 
325.2   facility taking effect on or after July 1, 2001.  The index for 
325.3   the inflation adjustment must be based on the change in the 
325.4   Consumer Price Index-All Items (United States City average) 
325.5   (CPI-U) forecasted by Data Resources, Inc., as forecasted in the 
325.6   fourth quarter of the calendar year preceding the rate year.  
325.7   The inflation adjustment must be based on the 12-month period 
325.8   from the midpoint of the previous rate year to the midpoint of 
325.9   the rate year for which the rate is being determined.  For the 
325.10  rate years beginning on July 1, 1999, and July 1, 2000, July 1, 
325.11  2001, and July 1, 2002, this paragraph shall apply only to the 
325.12  property-related payment rate, except that adjustments to 
325.13  include the cost of any increase in health department licensing 
325.14  fees taking effect on or after July 1, 2001, shall be provided.  
325.15  In determining the amount of the property-related payment rate 
325.16  adjustment under this paragraph, the commissioner shall 
325.17  determine the proportion of the facility's rates that are 
325.18  property-related based on the facility's most recent cost report.
325.19     (d) The commissioner shall develop additional 
325.20  incentive-based payments of up to five percent above the 
325.21  standard contract rate for achieving outcomes specified in each 
325.22  contract.  The specified facility-specific outcomes must be 
325.23  measurable and approved by the commissioner.  The commissioner 
325.24  may establish, for each contract, various levels of achievement 
325.25  within an outcome.  After the outcomes have been specified the 
325.26  commissioner shall assign various levels of payment associated 
325.27  with achieving the outcome.  Any incentive-based payment cancels 
325.28  if there is a termination of the contract.  In establishing the 
325.29  specified outcomes and related criteria the commissioner shall 
325.30  consider the following state policy objectives: 
325.31     (1) improved cost effectiveness and quality of life as 
325.32  measured by improved clinical outcomes; 
325.33     (2) successful diversion or discharge to community 
325.34  alternatives; 
325.35     (3) decreased acute care costs; 
325.36     (4) improved consumer satisfaction; 
326.1      (5) the achievement of quality; or 
326.2      (6) any additional outcomes proposed by a nursing facility 
326.3   that the commissioner finds desirable. 
326.4      Sec. 28.  Minnesota Statutes 2000, section 256B.434, is 
326.5   amended by adding a subdivision to read: 
326.6      Subd. 4c.  [FACILITY RATE INCREASES EFFECTIVE JANUARY 1, 
326.7   2002.] For the rate period beginning January 1, 2002, and for 
326.8   the rate year beginning July 1, 2002, a nursing facility in 
326.9   Morrison county licensed for 83 beds shall receive an increase 
326.10  of $2.54 in each case mix payment rate to offset property tax 
326.11  payments due as a result of the facility's conversion from 
326.12  nonprofit to for-profit status.  The increases under this 
326.13  subdivision shall be added following the determination under 
326.14  this chapter of the payment rate for the rate year beginning 
326.15  July 1, 2001, and shall be included in the facility's total 
326.16  payment rates for the purposes of determining future rates under 
326.17  this section or any other section. 
326.18     Sec. 29.  Minnesota Statutes 2000, section 256B.434, is 
326.19  amended by adding a subdivision to read: 
326.20     Subd. 4d.  [FACILITY RATE INCREASES EFFECTIVE JULY 1, 
326.21  2001.] For the rate year beginning July 1, 2001, a nursing 
326.22  facility in Hennepin county licensed for 302 beds shall receive 
326.23  an increase of 29 cents in each case mix payment rate to correct 
326.24  an error in the cost-reporting system that occurred prior to the 
326.25  date that the facility entered the alternative payment 
326.26  demonstration project.  The increases under this subdivision 
326.27  shall be added following the determination under this chapter of 
326.28  the payment rate for the rate year beginning July 1, 2001, and 
326.29  shall be included in the facility's total payment rates for the 
326.30  purposes of determining future rates under this section or any 
326.31  other section. 
326.32     Sec. 30.  Minnesota Statutes 2000, section 256B.434, is 
326.33  amended by adding a subdivision to read: 
326.34     Subd. 4e.  [RATE INCREASE EFFECTIVE JULY 1, 2001.] A 
326.35  nursing facility in Anoka county licensed for 98 beds as of July 
326.36  1, 2000, shall receive an increase of $10 in each case mix rate 
327.1   for the rate year beginning July 1, 2001.  This increase shall 
327.2   be included in the facility's total payment rate for purposes of 
327.3   determining future rates under this section or any other section 
327.4   through June 30, 2004. 
327.5      Sec. 31.  Minnesota Statutes 2000, section 256B.434, 
327.6   subdivision 10, is amended to read: 
327.7      Subd. 10.  [EXEMPTIONS.] (a) To the extent permitted by 
327.8   federal law, (1) a facility that has entered into a contract 
327.9   under this section is not required to file a cost report, as 
327.10  defined in Minnesota Rules, part 9549.0020, subpart 13, for any 
327.11  year after the base year that is the basis for the calculation 
327.12  of the contract payment rate for the first rate year of the 
327.13  alternative payment demonstration project contract; and (2) a 
327.14  facility under contract is not subject to audits of historical 
327.15  costs or revenues, or paybacks or retroactive adjustments based 
327.16  on these costs or revenues, except audits, paybacks, or 
327.17  adjustments relating to the cost report that is the basis for 
327.18  calculation of the first rate year under the contract. 
327.19     (b) A facility that is under contract with the commissioner 
327.20  under this section is not subject to the moratorium on licensure 
327.21  or certification of new nursing home beds in section 144A.071, 
327.22  unless the project results in a net increase in bed capacity or 
327.23  involves relocation of beds from one site to another.  Contract 
327.24  payment rates must not be adjusted to reflect any additional 
327.25  costs that a nursing facility incurs as a result of a 
327.26  construction project undertaken under this paragraph.  In 
327.27  addition, as a condition of entering into a contract under this 
327.28  section, a nursing facility must agree that any future medical 
327.29  assistance payments for nursing facility services will not 
327.30  reflect any additional costs attributable to the sale of a 
327.31  nursing facility under this section and to construction 
327.32  undertaken under this paragraph that otherwise would not be 
327.33  authorized under the moratorium in section 144A.073.  Nothing in 
327.34  this section prevents a nursing facility participating in the 
327.35  alternative payment demonstration project under this section 
327.36  from seeking approval of an exception to the moratorium through 
328.1   the process established in section 144A.073, and if approved the 
328.2   facility's rates shall be adjusted to reflect the cost of the 
328.3   project.  Nothing in this section prevents a nursing facility 
328.4   participating in the alternative payment demonstration project 
328.5   from seeking legislative approval of an exception to the 
328.6   moratorium under section 144A.071, and, if enacted, the 
328.7   facility's rates shall be adjusted to reflect the cost of the 
328.8   project. 
328.9      (c) Notwithstanding section 256B.48, subdivision 6, 
328.10  paragraphs (c), (d), and (e), and pursuant to any terms and 
328.11  conditions contained in the facility's contract, a nursing 
328.12  facility that is under contract with the commissioner under this 
328.13  section is in compliance with section 256B.48, subdivision 6, 
328.14  paragraph (b), if the facility is Medicare certified. 
328.15     (d) (c) Notwithstanding paragraph (a), if by April 1, 1996, 
328.16  the health care financing administration has not approved a 
328.17  required waiver, or the health care financing administration 
328.18  otherwise requires cost reports to be filed prior to the 
328.19  waiver's approval, the commissioner shall require a cost report 
328.20  for the rate year. 
328.21     (e) (d) A facility that is under contract with the 
328.22  commissioner under this section shall be allowed to change 
328.23  therapy arrangements from an unrelated vendor to a related 
328.24  vendor during the term of the contract.  The commissioner may 
328.25  develop reasonable requirements designed to prevent an increase 
328.26  in therapy utilization for residents enrolled in the medical 
328.27  assistance program. 
328.28     Sec. 32.  [256B.437] [IMPLEMENTATION OF A CASE MIX SYSTEM 
328.29  FOR NURSING FACILITIES BASED ON THE MINIMUM DATA SET.] 
328.30     Subdivision 1.  [SCOPE.] This section establishes the 
328.31  method and criteria used to determine resident reimbursement 
328.32  classifications based upon the assessments of residents of 
328.33  nursing homes and boarding care homes whose payment rates are 
328.34  established under section 256B.431, 256B.434, or 256B.435.  
328.35  Resident reimbursement classifications shall be established 
328.36  according to the 34 group, resource utilization groups, version 
329.1   III or RUG-III model as described in section 144.0724.  
329.2   Reimbursement classifications established under this section 
329.3   shall be implemented after June 30, 2002, but no later than 
329.4   January 1, 2003. 
329.5      Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
329.6   following terms have the meanings given. 
329.7      (a) [ASSESSMENT REFERENCE DATE.] "Assessment reference 
329.8   date" has the meaning given in section 144.0724, subdivision 2, 
329.9   paragraph (a). 
329.10     (b) [CASE MIX INDEX.] "Case mix index" has the meaning 
329.11  given in section 144.0724, subdivision 2, paragraph (b). 
329.12     (c) [INDEX MAXIMIZATION.] "Index maximization" has the 
329.13  meaning given in section 144.0724, subdivision 2, paragraph (c). 
329.14     (d) [MINIMUM DATA SET.] "Minimum data set" has the meaning 
329.15  given in section 144.0724, subdivision 2, paragraph (d). 
329.16     (e) [REPRESENTATIVE.] "Representative" has the meaning 
329.17  given in section 144.0724, subdivision 2, paragraph (e). 
329.18     (f) [RESOURCE UTILIZATION GROUPS OR RUG.] "Resource 
329.19  utilization groups" or "RUG" has the meaning given in section 
329.20  144.0724, subdivision 2, paragraph (f). 
329.21     Subd. 3.  [CASE MIX INDICES.] (a) The commissioner of human 
329.22  services shall assign a case mix index to each resident class 
329.23  based on the Health Care Financing Administration's staff time 
329.24  measurement study and adjusted for Minnesota-specific wage 
329.25  indices.  The case mix indices assigned to each resident class 
329.26  shall be published in the Minnesota State Register at least 120 
329.27  days prior to the implementation of the 34 group, RUG-III 
329.28  resident classification system. 
329.29     (b) An index maximization approach shall be used to 
329.30  classify residents. 
329.31     (c) After implementation of the revised case mix system, 
329.32  the commissioner of human services may annually rebase case mix 
329.33  indices and base rates using more current data on average wage 
329.34  rates and staff time measurement studies.  This rebasing shall 
329.35  be calculated under subdivision 7, paragraph (b).  The 
329.36  commissioner shall publish in the Minnesota State Register 
330.1   adjusted case mix indices at least 45 days prior to the 
330.2   effective date of the adjusted case mix indices. 
330.3      Subd. 4.  [RESIDENT ASSESSMENT SCHEDULE.] (a) Nursing 
330.4   facilities shall conduct and submit case mix assessments 
330.5   according to the schedule established by the commissioner of 
330.6   health under section 144.0724, subdivisions 4 and 5. 
330.7      (b) The resident reimbursement classifications established 
330.8   under section 144.0724, subdivision 3, shall be effective the 
330.9   day of admission for new admission assessments.  The effective 
330.10  date for significant change assessments shall be the assessment 
330.11  reference date.  The effective date for annual and second 
330.12  quarterly assessments shall be the first day of the month 
330.13  following assessment reference date. 
330.14     Subd. 5.  [NOTICE OF RESIDENT REIMBURSEMENT 
330.15  CLASSIFICATION.] Nursing facilities shall provide notice to a 
330.16  resident of the resident's case mix classification according to 
330.17  procedures established by the commissioner of health under 
330.18  section 144.0724, subdivision 7. 
330.19     Subd. 6.  [RECONSIDERATION OF RESIDENT CLASSIFICATION.] Any 
330.20  request for reconsideration of a resident classification must be 
330.21  made under section 144.0724, subdivision 8. 
330.22     Subd. 7.  [RATE DETERMINATION UPON TRANSITION TO RUG-III 
330.23  PAYMENT RATES.] (a) The commissioner of human services shall 
330.24  determine payment rates at the time of transition to the RUG 
330.25  based payment model in a facility-specific, budget-neutral 
330.26  manner.  The case mix indices as defined in subdivision 3 shall 
330.27  be used to allocate the case mix adjusted component of total 
330.28  payment across all case mix groups.  To transition from the 
330.29  current calculation methodology to the RUG based methodology, 
330.30  the commissioner of health shall report to the commissioner of 
330.31  human services the resident days classified according to the 
330.32  categories defined in subdivision 3 for the 12-month reporting 
330.33  period ending September 30, 2001, for each nursing facility.  
330.34  The commissioner of human services shall use this data to 
330.35  compute the standardized days for the reporting period under the 
330.36  RUG system. 
331.1      (b) The commissioner of human services shall determine the 
331.2   case mix adjusted component of the rate as follows: 
331.3      (1) determine the case mix portion of the 11 case mix rates 
331.4   in effect on June 30, 2002, or the 34 case mix rates in effect 
331.5   on or after June 30, 2003; 
331.6      (2) multiply each amount in clause (1) by the number of 
331.7   resident days assigned to each group for the reporting period 
331.8   ending September 30, 2001, or the most recent year for which 
331.9   data is available; 
331.10     (3) compute the sum of the amounts in clause (2); 
331.11     (4) determine the total RUG standardized days for the 
331.12  reporting period ending September 30, 2001, or the most recent 
331.13  year for which data is available using new indices calculated 
331.14  under subdivision 3, paragraph (c); 
331.15     (5) divide the amount in clause (3) by the amount in clause 
331.16  (4) which shall be the average case mix adjusted component of 
331.17  the rate under the RUG method; and 
331.18     (6) multiply this average rate by the case mix weight in 
331.19  subdivision 3 for each RUG group. 
331.20     (c) The noncase mix component will be allocated to each RUG 
331.21  group as a constant amount to determine the transition payment 
331.22  rate.  Any other rate adjustments that are effective on or after 
331.23  July 1, 2002, shall be applied to the transition rates 
331.24  determined under this section. 
331.25     Sec. 33.  [256B.4371] [NURSING FACILITY VOLUNTARY CLOSURES 
331.26  AND PLANNING AND DEVELOPMENT OF COMMUNITY-BASED ALTERNATIVES.] 
331.27     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
331.28  subdivision apply to subdivisions 2 to 9. 
331.29     (b) "Closure" means the cessation of operations of a 
331.30  nursing facility and delicensure and decertification of all beds 
331.31  within the facility. 
331.32     (c) "Commencement of closure" means the date on which 
331.33  residents and designated representatives are notified of a 
331.34  planned closure according to sections 144A.185 to 144A.1887 as 
331.35  part of an approved closure plan. 
331.36     (d) "Completion of closure" means the date on which the 
332.1   final resident of the nursing facility or nursing facilities 
332.2   designated for closure in an approved closure plan is discharged 
332.3   from the facility or facilities. 
332.4      (e) "Closure plan" means a plan to close a nursing facility 
332.5   and reallocate the resulting savings to provide planned closure 
332.6   rate adjustments at other facilities. 
332.7      (f) "Partial closure" means the delicensure and 
332.8   decertification of a portion of the beds within the facility. 
332.9      (g) "Planned closure rate adjustment" means an increase in 
332.10  a nursing facility's operating rates resulting from a partial 
332.11  planned closure of a facility or a planned closure of another 
332.12  facility.  
332.13     Subd. 2.  [PLANNING AND DEVELOPMENT OF COMMUNITY BASED 
332.14  SERVICES.] 
332.15     (a) The commissioner of human services shall establish a 
332.16  process to adjust the capacity and distribution of long-term 
332.17  care services to equalize the supply and demand for different 
332.18  types of services.  This process must include community 
332.19  planning, expansion or establishment of needed services, and 
332.20  analysis of voluntary nursing facility closures. 
332.21     (b) The purpose of this process is to support the planning 
332.22  and development of community-based services.  This process must 
332.23  support early intervention, advocacy, and consumer protection 
332.24  while providing resources and incentives for expanded county 
332.25  planning and for nursing facilities to transition to meet 
332.26  community needs. 
332.27     (c) The process shall support and facilitate expansion of 
332.28  community-based services under the county-administered 
332.29  alternative care program under section 256B.0913 and waivers for 
332.30  elderly under section 256B.0915, including the development of 
332.31  supportive services such as housing and transportation.  The 
332.32  process shall utilize community assessments and planning 
332.33  developed for the community health services plan and plan update 
332.34  and for the community social services act plan. 
332.35     (d) The addendum to the biennial plan shall be submitted 
332.36  annually, beginning in 2001, and shall include recommendations 
333.1   for development of community-based services.  Both planning and 
333.2   implementation shall be implemented within the amount of funding 
333.3   made available to the county board for these purposes. 
333.4      (e) The commissioner of health and the commissioner of 
333.5   human services, as appropriate, shall provide available data 
333.6   necessary for the county, including but not limited to data on 
333.7   nursing facility bed distribution, housing with services 
333.8   options, the closure of nursing facilities that occur outside of 
333.9   the planned closure process, and approval of planned closures in 
333.10  the county and contiguous counties. 
333.11     (f) The plan, within the funding allocated, shall: 
333.12     (1) identify the need for services based on demographic 
333.13  data, service availability, caseload information, and provider 
333.14  information; 
333.15     (2) involve providers, consumers, cities, townships, 
333.16  businesses, and area agencies on aging in the planning process; 
333.17     (3) address the availability of alternative care and 
333.18  elderly waiver services for eligible recipients; 
333.19     (4) address the development of other supportive services, 
333.20  such as transit, housing, and workforce and economic 
333.21  development; and 
333.22     (5) estimate the cost and timelines for development. 
333.23     (g) The biennial plan addendum shall be coordinated with 
333.24  the county mental health plan for inclusion in the community 
333.25  health services plan and included as an addendum to the 
333.26  community social services plan. 
333.27     (h) The county board having financial responsibility for 
333.28  persons present in another county shall cooperate with that 
333.29  county for planning and development of services. 
333.30     (i) The county board shall cooperate in planning and 
333.31  development of community based services with other counties, as 
333.32  necessary, and coordinate planning for long-term care services 
333.33  that involve more than one county, within the funding allocated 
333.34  for these purposes. 
333.35     (j) The commissioners of health and human services, in 
333.36  cooperation with county boards, shall report to the legislature 
334.1   by February 1 of each year, beginning February 1, 2002, 
334.2   regarding the development of community based services, 
334.3   transition or closure of nursing facilities, and consumer 
334.4   outcomes achieved, as documented by each county and reported to 
334.5   the commissioner by December 31 of each year. 
334.6      (k) The process established by the commissioner of human 
334.7   services shall ensure: 
334.8      (1) that counties consider multicounty service areas in 
334.9   developing services that may impact delivery efficiencies; and 
334.10     (2) review and comment by the area agencies on aging, 
334.11  regional development commissions, where they exist, and other 
334.12  planning agencies of the biennial plan addendum. 
334.13     Subd. 3.  [REQUEST FOR APPLICATIONS FOR PLANNED CLOSURE OF 
334.14  NURSING FACILITIES.] (a) By July 15, 2001, the commissioner of 
334.15  human services shall implement and announce a program for 
334.16  closure or partial closure of nursing facilities.  Names and 
334.17  identifying information provided in response to the announcement 
334.18  shall remain private unless approved, according to the timelines 
334.19  established in the plan.  The announcement must specify: 
334.20     (1) the criteria that will be used by the interagency 
334.21  long-term care planning committee established under section 
334.22  144A.31 and the commissioner to approve or reject applications; 
334.23     (2) a requirement for the submission of a letter of intent 
334.24  before the submission of an application; 
334.25     (3) the information that must accompany an application; 
334.26     (4) a schedule for letters of intent, applications, and 
334.27  consideration of applications for a minimum of four review 
334.28  processes to be conducted before June 30, 2003; and 
334.29     (5) that applications may combine planned closure rate 
334.30  adjustments with moratorium exception funding, in which case a 
334.31  single application may serve both purposes. 
334.32  Between October 1, 2001, and June 30, 2003, the commissioner 
334.33  shall approve planned closures of at least 5,140 nursing 
334.34  facility beds, with no more than 2,070 approved for closure 
334.35  prior to July 1, 2002, less the number of licensed beds in 
334.36  facilities that close during the same time period without 
335.1   approved closure plans or have notified the commissioner of 
335.2   health of their intent to close without an approved closure plan.
335.3      (b) A facility or facilities reimbursed under section 
335.4   256B.431, 256B.434, or 256B.435 with a closure plan approved by 
335.5   the commissioner under subdivision 6 may assign a planned 
335.6   closure rate adjustment to another facility that is not closing 
335.7   or facilities that are not closing, or in the case of a partial 
335.8   closure, to the facility undertaking the partial closure.  A 
335.9   facility may also elect to have a planned closure rate 
335.10  adjustment shared equally by the five nursing facilities with 
335.11  the lowest total operating payment rates in the state 
335.12  development region, designated under section 462.385, in which 
335.13  the facility receiving the planned closure rate adjustment is 
335.14  located.  The planned closure rate adjustment must be calculated 
335.15  under subdivision 7.  A planned closure rate adjustment under 
335.16  this section is effective on the first day of the month 
335.17  following completion of closure of all facilities designated for 
335.18  closure in the application and becomes part of the nursing 
335.19  facility's total operating payment rate. 
335.20     Applicants may use the planned closure rate adjustment to 
335.21  allow for a property payment for a new nursing facility or an 
335.22  addition to an existing nursing facility.  Applications approved 
335.23  under this paragraph are exempt from other requirements for 
335.24  moratorium exceptions under section 144A.073, subdivisions 2 and 
335.25  3.  
335.26     Facilities without a closure plan, or whose closure plan is 
335.27  not approved by the commissioner, are not eligible for a planned 
335.28  closure rate adjustment under subdivision 7.  However, the 
335.29  commissioner shall calculate the amount the facility would have 
335.30  received under subdivision 7 and shall use this amount to 
335.31  provide equal rate adjustments to the five nursing facilities 
335.32  with the lowest total operating payment rates in the state 
335.33  development region, designated under section 462.385, in which 
335.34  the facility is located. 
335.35     (c) To be considered for approval, an application must 
335.36  include: 
336.1      (1) a description of the proposed closure plan, which must 
336.2   include identification of the facility or facilities to receive 
336.3   a planned closure rate adjustment and the amount and timing of a 
336.4   planned closure rate adjustment proposed for each facility; 
336.5      (2) the proposed timetable for any proposed closure, 
336.6   including the proposed dates for announcement to residents, 
336.7   commencement of closure, and completion of closure; 
336.8      (3) the proposed relocation plan for current residents of 
336.9   any facility designated for closure.  The proposed relocation 
336.10  plan must be designed to comply with all applicable state and 
336.11  federal statutes and regulations, including, but not limited to, 
336.12  section 144A.16 and Minnesota Rules, parts 4655.6810 to 
336.13  4655.6830, 4658.1600 to 4658.1690, and 9546.0010 to 9546.0060; 
336.14     (4) a description of the relationship between the nursing 
336.15  facility that is proposed for closure and the nursing facility 
336.16  or facilities proposed to receive the planned closure rate 
336.17  adjustment.  If these facilities are not under common ownership, 
336.18  copies of any contracts, purchase agreements, or other documents 
336.19  establishing a relationship or proposed relationship must be 
336.20  provided; 
336.21     (5) documentation, in a format approved by the 
336.22  commissioner, that all the nursing facilities receiving a 
336.23  planned closure rate adjustment under the plan have accepted 
336.24  joint and several liability for recovery of overpayments under 
336.25  section 256B.0641, subdivision 2, for the facilities designated 
336.26  for closure under the plan; and 
336.27     (6) an explanation of how the application coordinates with 
336.28  planning efforts under subdivision 2. 
336.29     (d) The application must address the criteria listed in 
336.30  subdivision 4. 
336.31     Subd. 4.  [CRITERIA FOR REVIEW OF APPLICATION.] In 
336.32  reviewing and approving closure proposals, the commissioner 
336.33  shall consider, but not be limited to, the following criteria: 
336.34     (1) improved quality of care and quality of life for 
336.35  consumers; 
336.36     (2) closure of a nursing facility that has a poor physical 
337.1   plant; 
337.2      (3) the existence of excess nursing facility beds, measured 
337.3   in terms of beds per thousand persons aged 85 or older.  The 
337.4   excess must be measured in reference to: 
337.5      (i) the county in which the facility is located; 
337.6      (ii) the county and all contiguous counties; 
337.7      (iii) the region in which the facility is located; or 
337.8      (iv) the facility's service area. 
337.9   The facility shall indicate in its proposal the area it believes 
337.10  is appropriate for this measurement.  A facility in a county 
337.11  that is in the lowest quartile of counties with reference to 
337.12  beds per thousand persons aged 85 or older is not in an area of 
337.13  excess capacity; 
337.14     (4) low-occupancy rates, provided that the unoccupied beds 
337.15  are not the result of a personnel shortage.  In analyzing 
337.16  occupancy rates, the commissioner shall examine waiting lists in 
337.17  the applicant facility and at facilities in the surrounding 
337.18  area, as determined under clause (3); 
337.19     (5) evidence of a community planning process to determine 
337.20  what services are needed and ensure that needed services are 
337.21  established; 
337.22     (6) innovative use of reinvestment funds; 
337.23     (7) innovative use planned for the closed facility's 
337.24  physical plant; 
337.25     (8) evidence that the proposal serves the interests of the 
337.26  state; and 
337.27     (9) evidence of other factors that affect the viability of 
337.28  the facility, including excessive nursing pool costs. 
337.29     Subd. 5.  [REVIEW AND APPROVAL OF PROPOSALS.] (a) The 
337.30  interagency long-term care planning committee may recommend that 
337.31  the commissioner of human services grant approval, within the 
337.32  limits established in subdivision 3, paragraph (a), to 
337.33  applications that satisfy the requirements of this section.  The 
337.34  interagency committee may appoint an advisory review panel 
337.35  composed of representatives of counties, SAIL projects, 
337.36  consumers, and providers to review proposals and provide 
338.1   comments and recommendations to the committee.  The 
338.2   commissioners of human services and health shall provide staff 
338.3   and technical assistance to the committee for the review and 
338.4   analysis of proposals.  The commissioners of human services and 
338.5   health shall jointly approve or disapprove an application within 
338.6   30 days after receiving the committee's recommendations. 
338.7      (b) Approval of a planned closure expires 18 months after 
338.8   approval by the commissioner of human services, unless 
338.9   commencement of closure has begun. 
338.10     (c) The commissioner of human services may change any 
338.11  provision of the application to which all parties agree. 
338.12     Subd. 6.  [PLANNED CLOSURE RATE ADJUSTMENT.] The 
338.13  commissioner of human services shall calculate the amount of the 
338.14  planned closure rate adjustment available under subdivision 3, 
338.15  paragraph (b), according to clauses (1) to (4): 
338.16     (1) the amount available is the net reduction of nursing 
338.17  facility beds multiplied by $2,080; 
338.18     (2) the total number of beds in the nursing facility 
338.19  receiving the planned closure rate adjustment must be 
338.20  identified; 
338.21     (3) capacity days are determined by multiplying the number 
338.22  determined under clause (2) by 365; and 
338.23     (4) the planned closure rate adjustment is the amount 
338.24  available in clause (1), divided by capacity days determined 
338.25  under clause (3). 
338.26     Subd. 7.  [OTHER RATE ADJUSTMENTS.] Facilities receiving 
338.27  planned closure rate adjustments remain eligible for any 
338.28  applicable rate adjustments provided under section 256B.431, 
338.29  256B.434, or any other section. 
338.30     Subd. 8.  [COUNTY COSTS.] The commissioner of human 
338.31  services shall allocate up to $500 per nursing facility bed that 
338.32  is closing, within the limits of the appropriation specified for 
338.33  this purpose, to be used for relocation costs incurred by 
338.34  counties for planned closures under this section or resident 
338.35  relocation under sections 144A.185 to 144A.1887.  To be eligible 
338.36  for this allocation, a county in which a nursing facility closes 
339.1   must provide to the commissioner a detailed statement in a form 
339.2   provided by the commissioner of additional costs, not to exceed 
339.3   $500 per bed closed, that are directly incurred related to the 
339.4   county's required role in the relocation process. 
339.5      Sec. 34.  Minnesota Statutes 2000, section 256B.501, is 
339.6   amended by adding a subdivision to read: 
339.7      Subd. 14.  [ICF/MR RATE INCREASES BEGINNING JULY 1, 2001, 
339.8   AND JULY 1, 2002.] (a) For the rate periods beginning July 1, 
339.9   2001, and July 1, 2002, the commissioner shall make available to 
339.10  each facility reimbursed under this section, section 256B.5011, 
339.11  and Laws 1993, First Special Session chapter 1, article 4, 
339.12  section 11, an adjustment to the total operating payment rate of 
339.13  3.0 percent. 
339.14     (b) For each facility, the commissioner shall determine the 
339.15  payment rate adjustment using the percentage specified in 
339.16  paragraph (a) multiplied by the total operating payment rate in 
339.17  effect on the last day of the prior rate year, and dividing the 
339.18  resulting amount by the facility's actual resident days.  The 
339.19  total operating payment rate shall include the adjustment 
339.20  provided in subdivision 12. 
339.21     (c) Any facility whose payment rates are governed by 
339.22  closure agreements, receivership agreements, or Minnesota Rules, 
339.23  part 9553.0075, is not eligible for an adjustment otherwise 
339.24  granted under this subdivision.  
339.25     Sec. 35.  Minnesota Statutes 2000, section 256B.76, is 
339.26  amended to read: 
339.27     256B.76 [PHYSICIAN AND DENTAL REIMBURSEMENT.] 
339.28     (a) Effective for services rendered on or after October 1, 
339.29  1992, the commissioner shall make payments for physician 
339.30  services as follows: 
339.31     (1) payment for level one Health Care Finance 
339.32  Administration's common procedural coding system (HCPCS) codes 
339.33  titled "office and other outpatient services," "preventive 
339.34  medicine new and established patient," "delivery, antepartum, 
339.35  and postpartum care," "critical care," Caesarean cesarean 
339.36  delivery and pharmacologic management provided to psychiatric 
340.1   patients, and HCPCS level three codes for enhanced services for 
340.2   prenatal high risk, shall be paid at the lower of (i) submitted 
340.3   charges, or (ii) 25 percent above the rate in effect on June 30, 
340.4   1992.  If the rate on any procedure code within these categories 
340.5   is different than the rate that would have been paid under the 
340.6   methodology in section 256B.74, subdivision 2, then the larger 
340.7   rate shall be paid; 
340.8      (2) payments for all other services shall be paid at the 
340.9   lower of (i) submitted charges, or (ii) 15.4 percent above the 
340.10  rate in effect on June 30, 1992; 
340.11     (3) all physician rates shall be converted from the 50th 
340.12  percentile of 1982 to the 50th percentile of 1989, less the 
340.13  percent in aggregate necessary to equal the above increases 
340.14  except that payment rates for home health agency services shall 
340.15  be the rates in effect on September 30, 1992; 
340.16     (4) effective for services rendered on or after January 1, 
340.17  2000, payment rates for physician and professional services 
340.18  shall be increased by three percent over the rates in effect on 
340.19  December 31, 1999, except for home health agency and family 
340.20  planning agency services; and 
340.21     (5) the increases in clause (4) shall be implemented 
340.22  January 1, 2000, for managed care. 
340.23     (b) Effective for services rendered on or after October 1, 
340.24  1992, the commissioner shall make payments for dental services 
340.25  as follows: 
340.26     (1) dental services shall be paid at the lower of (i) 
340.27  submitted charges, or (ii) 25 percent above the rate in effect 
340.28  on June 30, 1992; 
340.29     (2) dental rates shall be converted from the 50th 
340.30  percentile of 1982 to the 50th percentile of 1989, less the 
340.31  percent in aggregate necessary to equal the above increases; 
340.32     (3) effective for services rendered on or after January 1, 
340.33  2000, payment rates for dental services shall be increased by 
340.34  three percent over the rates in effect on December 31, 1999; 
340.35     (4) the commissioner shall award grants to community 
340.36  clinics or other nonprofit community organizations, political 
341.1   subdivisions, professional associations, or other organizations 
341.2   that demonstrate the ability to provide dental services 
341.3   effectively to public program recipients.  Grants may be used to 
341.4   fund the costs related to coordinating access for recipients, 
341.5   developing and implementing patient care criteria, upgrading or 
341.6   establishing new facilities, acquiring furnishings or equipment, 
341.7   recruiting new providers, or other development costs that will 
341.8   improve access to dental care in a region.  In awarding grants, 
341.9   the commissioner shall give priority to applicants that plan to 
341.10  serve areas of the state in which the number of dental providers 
341.11  is not currently sufficient to meet the needs of recipients of 
341.12  public programs or uninsured individuals.  The commissioner 
341.13  shall consider the following in awarding the grants:  (i) 
341.14  potential to successfully increase access to an underserved 
341.15  population; (ii) the ability to raise matching funds; (iii) the 
341.16  long-term viability of the project to improve access beyond the 
341.17  period of initial funding; (iv) the efficiency in the use of the 
341.18  funding; and (v) the experience of the proposers in providing 
341.19  services to the target population. 
341.20     The commissioner shall monitor the grants and may terminate 
341.21  a grant if the grantee does not increase dental access for 
341.22  public program recipients.  The commissioner shall consider 
341.23  grants for the following: 
341.24     (i) implementation of new programs or continued expansion 
341.25  of current access programs that have demonstrated success in 
341.26  providing dental services in underserved areas; 
341.27     (ii) a pilot program for utilizing hygienists outside of a 
341.28  traditional dental office to provide dental hygiene services; 
341.29  and 
341.30     (iii) a program that organizes a network of volunteer 
341.31  dentists, establishes a system to refer eligible individuals to 
341.32  volunteer dentists, and through that network provides donated 
341.33  dental care services to public program recipients or uninsured 
341.34  individuals. 
341.35     (5) beginning October 1, 1999, the payment for tooth 
341.36  sealants and fluoride treatments shall be the lower of (i) 
342.1   submitted charge, or (ii) 80 percent of median 1997 charges; and 
342.2      (6) the increases listed in clauses (3) and (5) shall be 
342.3   implemented January 1, 2000, for managed care. 
342.4      (c) An entity that operates both a Medicare certified 
342.5   comprehensive outpatient rehabilitation facility and a facility 
342.6   which was certified prior to January 1, 1993, that is licensed 
342.7   under Minnesota Rules, parts 9570.2000 to 9570.3600, and for 
342.8   whom at least 33 percent of the clients receiving rehabilitation 
342.9   services and mental health services in the most recent calendar 
342.10  year are medical assistance recipients, shall be reimbursed by 
342.11  the commissioner for rehabilitation services and mental health 
342.12  services at rates that are 38 percent greater than the maximum 
342.13  reimbursement rate allowed under paragraph (a), clause (2), when 
342.14  those services are (1) provided within the comprehensive 
342.15  outpatient rehabilitation facility and (2) provided to residents 
342.16  of nursing facilities owned by the entity. 
342.17     Sec. 36.  Laws 1995, chapter 207, article 3, section 21, as 
342.18  amended by Laws 1999, chapter 245, article 3, section 43, is 
342.19  amended to read:  
342.20     Sec. 21.  [FACILITY CERTIFICATION.] 
342.21     (a) Notwithstanding Minnesota Statutes, section 252.291, 
342.22  subdivisions 1 and 2, the commissioner of health shall inspect 
342.23  to certify a large community-based facility currently licensed 
342.24  under Minnesota Rules, parts 9525.0215 to 9525.0355, for more 
342.25  than 16 beds and located in Northfield.  The facility may be 
342.26  certified for up to 44 beds.  The commissioner of health must 
342.27  inspect to certify the facility as soon as possible after the 
342.28  effective date of this section.  The commissioner of human 
342.29  services shall work with the facility and affected counties to 
342.30  relocate any current residents of the facility who do not meet 
342.31  the admission criteria for an ICF/MR.  Until January 1, 1999, in 
342.32  order to fund the ICF/MR services and relocations of current 
342.33  residents authorized, the commissioner of human services may 
342.34  transfer on a quarterly basis to the medical assistance account 
342.35  from each affected county's community social service allocation, 
342.36  an amount equal to the state share of medical assistance 
343.1   reimbursement for the residential and day habilitation services 
343.2   funded by medical assistance and provided to clients for whom 
343.3   the county is financially responsible.  
343.4      (b) After January 1, 1999, the commissioner of human 
343.5   services shall fund the services under the state medical 
343.6   assistance program and may transfer on a quarterly basis to the 
343.7   medical assistance account from each affected county's community 
343.8   social service allocation, an amount equal to one-half of the 
343.9   state share of medical assistance reimbursement for the 
343.10  residential and day habilitation services funded by medical 
343.11  assistance and provided to clients for whom the county is 
343.12  financially responsible.  
343.13     (c) Effective July 1, 2001, the commissioner of human 
343.14  services shall fund the entire state share of medical assistance 
343.15  reimbursement for the residential and day habilitation services 
343.16  funded by medical assistance and provided to clients for whom 
343.17  counties are financially responsible from the medical assistance 
343.18  account, and shall not make any transfer from the community 
343.19  social service allocations of affected counties.  
343.20     (d) For nonresidents of Minnesota seeking admission to the 
343.21  facility, Rice county shall be notified in order to assure that 
343.22  appropriate funding is guaranteed from their state or country of 
343.23  residence. 
343.24     Sec. 37.  Laws 1999, chapter 245, article 3, section 45, as 
343.25  amended by Laws 2000, chapter 312, section 3, is amended to read:
343.26     Sec. 45.  [STATE LICENSURE CONFLICTS WITH FEDERAL 
343.27  REGULATIONS.] 
343.28     (a) Notwithstanding the provisions of Minnesota Rules, part 
343.29  4658.0520, an incontinent resident must be checked according to 
343.30  a specific time interval written in the resident's care plan.  
343.31  The resident's attending physician must authorize in writing any 
343.32  interval longer than two hours unless the resident, if 
343.33  competent, or a family member or legally appointed conservator, 
343.34  guardian, or health care agent of a resident who is not 
343.35  competent, agrees in writing to waive physician involvement in 
343.36  determining this interval. 
344.1      (b) This section expires July 1, 2001 2003. 
344.2      Sec. 38.  [DEVELOPMENT OF NEW NURSING FACILITY 
344.3   REIMBURSEMENT SYSTEM.] 
344.4      (a) The commissioner of human services shall develop and 
344.5   report to the legislature by January 15, 2003, a system to 
344.6   replace the current nursing facility reimbursement system 
344.7   established under Minnesota Statutes, sections 256B.431, 
344.8   256B.434, and 256B.435. 
344.9      (b) The system must be developed in consultation with the 
344.10  long-term care task force and with representatives of consumers, 
344.11  providers, and labor unions.  Within the limits of available 
344.12  appropriations, the commissioner may employ consultants to 
344.13  assist with this project. 
344.14     (c) The new reimbursement system must: 
344.15     (1) provide incentives to enhance quality of life and 
344.16  quality of care; 
344.17     (2) recognize cost differences in the care of different 
344.18  types of populations, including subacute care and dementia care; 
344.19     (3) establish rates that are sufficient without being 
344.20  excessive; 
344.21     (4) be affordable for the state and for private-pay 
344.22  residents; 
344.23     (5) be sensitive to changing conditions in the long-term 
344.24  care environment; 
344.25     (6) avoid creating access problems related to insufficient 
344.26  funding; 
344.27     (7) allow providers maximum flexibility in their business 
344.28  operations; 
344.29     (8) recognize the need for capital investment to improve 
344.30  physical plants; and 
344.31     (9) provide incentives for the development and use of 
344.32  private rooms. 
344.33     (d) Notwithstanding Minnesota Statutes, section 256B.435, 
344.34  the commissioner must not implement a performance-based 
344.35  contracting system for nursing facilities prior to July 1, 2003. 
344.36  The commissioner shall continue to reimburse nursing facilities 
345.1   under Minnesota Statutes, section 256B.431 or 256B.434, until 
345.2   otherwise directed by law. 
345.3      (e) The commissioner of human services, in consultation 
345.4   with the commissioner of health, shall conduct or contract for a 
345.5   time study to determine staff time being spent on various case 
345.6   mix categories; recommend adjustments to the case mix weights 
345.7   based on the time study data; and determine whether current 
345.8   staffing standards are adequate for providing quality care based 
345.9   on professional best practice and consumer experience.  If the 
345.10  commissioner determines the current standards are inadequate, 
345.11  the commissioner shall determine an appropriate staffing 
345.12  standard for the various case mix categories and the financial 
345.13  implications of phasing into this standard over the next four 
345.14  years. 
345.15     Sec. 39.  [REPORT ON STANDARDS FOR SUBACUTE CARE FACILITY 
345.16  LICENSURE.] 
345.17     By January 15, 2003, the commissioner of health shall 
345.18  submit a report to the legislature on implementation of a 
345.19  licensure program for subacute care.  This report must include: 
345.20     (1) definitions of subacute care and applicability of the 
345.21  proposed licensure program to various types of licensed 
345.22  facilities; 
345.23     (2) an analysis of whether specific standards for subacute 
345.24  levels of care need to be developed and the potential for 
345.25  increased costs for existing providers of subacute care; 
345.26     (3) recommendations on the applicability of the nursing 
345.27  home moratorium law to the licensure of subacute care facilities 
345.28  or programs; 
345.29     (4) identification of federal regulations guiding the 
345.30  provision of subacute care and whether further state standards 
345.31  are needed; and 
345.32     (5) identification of current and potential reimbursement 
345.33  for subacute care under Medicare, Medicaid, or managed care 
345.34  programs. 
345.35     Sec. 40.  [REGULATORY FLEXIBILITY.] 
345.36     (a) By July 1, 2001, the commissioners of health and human 
346.1   services shall: 
346.2      (1) develop a summary of federal nursing facility and 
346.3   community long-term care regulations that hamper state 
346.4   flexibility and place burdens on the goal of achieving 
346.5   high-quality care and optimum outcomes for consumers of 
346.6   services; and 
346.7      (2) share this summary with the legislature, other states, 
346.8   national groups that advocate for state interests with Congress, 
346.9   and the Minnesota congressional delegation. 
346.10     (b) The commissioners shall conduct ongoing follow-up with 
346.11  the entities to which this summary is provided and with the 
346.12  health care financing administration to achieve maximum 
346.13  regulatory flexibility, including the possibility of pilot 
346.14  projects to demonstrate regulatory flexibility on less than a 
346.15  statewide basis. 
346.16     Sec. 41.  [REPORT.] 
346.17     By January 15, 2003, the commissioner of health and the 
346.18  commissioner of human services shall report to the senate health 
346.19  and family security committee and the house health and human 
346.20  services policy committee on the number of closures that have 
346.21  taken place under Minnesota Statutes, section 256B.437, and any 
346.22  other nursing facility closures that may have taken place, 
346.23  alternatives to nursing facility care that have been developed, 
346.24  any problems with access to long-term care services that have 
346.25  resulted, and any recommendations for continuation of the 
346.26  regional long-term care planning process and the closure process 
346.27  after June 30, 2003. 
346.28     Sec. 42.  [NURSING ASSISTANT; HOME HEALTH AIDE CURRICULUM.] 
346.29     By January 1, 2003, the commissioner of health, in 
346.30  consultation with long-term care consumers, advocates, unions, 
346.31  and trade associations, shall present to the chairs of the 
346.32  legislative committees dealing with health care policy 
346.33  recommendations for updating the nursing assistant and home 
346.34  health aide curriculum (1998 edition) to help students learn 
346.35  front-line survival skills that support job motivation and 
346.36  satisfaction.  These skills include, but are not limited to, 
347.1   working with challenging behaviors, communication skills, stress 
347.2   management including the impact of personal life stress in the 
347.3   work setting, building relationships with families, cultural 
347.4   competencies, and working with death and dying. 
347.5      Sec. 43.  [EVALUATION OF REPORTING REQUIREMENTS.] 
347.6      The commissioners of human services and health, in 
347.7   consultation with interested parties, shall evaluate long-term 
347.8   care provider reporting requirements, balancing the need for 
347.9   public accountability with the need to reduce unnecessary 
347.10  paperwork, and shall eliminate unnecessary reporting 
347.11  requirements, seeking any necessary changes in federal and state 
347.12  law.  The commissioners shall present a progress report by 
347.13  February 1, 2002, to the chairs of the house and senate 
347.14  committees with jurisdiction over health and human services 
347.15  policy and finance. 
347.16     Sec. 44.  [NURSING FACILITY MULTIPLE SCLEROSIS PILOT 
347.17  PROJECT.] 
347.18     (a) For the period from July 1, 2001, to June 30, 2003, the 
347.19  commissioner of human services shall establish and implement a 
347.20  pilot project to contract with nursing facilities eligible to 
347.21  receive medical assistance payments that, at the time of 
347.22  enrollment in the pilot project, serve ten or more persons with 
347.23  a diagnosis of multiple sclerosis.  The commissioner shall 
347.24  negotiate a payment rate with eligible facilities to provide 
347.25  services to persons with multiple sclerosis that must not exceed 
347.26  150 percent of the person's case mix classification payment rate 
347.27  for that facility.  The commissioner may contract with up to six 
347.28  nursing facilities. 
347.29     (b) Facilities may enroll in the pilot project between July 
347.30  1, 2001, and December 31, 2001. 
347.31     (c) The commissioner shall evaluate the additional payments 
347.32  made under the pilot project to determine if the adjustment 
347.33  enables participating facilities to adequately meet the needs 
347.34  for individual care and specialized programming, including 
347.35  programs to meet psychosocial, physiological, and case 
347.36  management needs, without incurring financial losses.  The 
348.1   commissioner of human services, in consultation with the 
348.2   commissioner of health, shall report to the legislature by 
348.3   January 15, 2003, on the results of the project and with a 
348.4   recommendation on whether the project should be made permanent. 
348.5      (d) The negotiated adjustment shall not affect the payment 
348.6   rate charged to private paying residents under the provisions of 
348.7   Minnesota Statutes, section 256B.48, subdivision 1. 
348.8      Sec. 45.  [MINIMUM STAFFING STANDARDS REPORT.] 
348.9      By January 15, 2002, the commissioner of health and the 
348.10  commissioner of human services shall report to the legislature 
348.11  on whether they should translate the minimum nurse staffing 
348.12  requirement in Minnesota Statutes, section 144A.04, subdivision 
348.13  7, paragraph (a), upon the transition to the RUG-III 
348.14  classification system, or whether they should establish 
348.15  different time-based standards, and how to accomplish either. 
348.16     Sec. 46.  [REPEALER.] 
348.17     Minnesota Statutes 2000, sections 144.0721, subdivision 1, 
348.18  and 256B.434, subdivision 5, are repealed. 
348.19                             ARTICLE 6 
348.20                             WORK FORCE 
348.21     Section 1.  Minnesota Statutes 2000, section 144.1464, is 
348.22  amended to read: 
348.23     144.1464 [SUMMER HEALTH CARE INTERNS.] 
348.24     Subdivision 1.  [SUMMER INTERNSHIPS.] The commissioner of 
348.25  health, through a contract with a nonprofit organization as 
348.26  required by subdivision 4, shall award grants to hospitals and, 
348.27  clinics, nursing facilities, and home care providers to 
348.28  establish a secondary and post-secondary summer health care 
348.29  intern program.  The purpose of the program is to expose 
348.30  interested secondary and post-secondary pupils to various 
348.31  careers within the health care profession. 
348.32     Subd. 2.  [CRITERIA.] (a) The commissioner, through the 
348.33  organization under contract, shall award grants to 
348.34  hospitals and, clinics, nursing facilities, and home care 
348.35  providers that agree to:  
348.36     (1) provide secondary and post-secondary summer health care 
349.1   interns with formal exposure to the health care profession; 
349.2      (2) provide an orientation for the secondary and 
349.3   post-secondary summer health care interns; 
349.4      (3) pay one-half the costs of employing the secondary and 
349.5   post-secondary summer health care intern, based on an overall 
349.6   hourly wage that is at least the minimum wage but does not 
349.7   exceed $6 an hour; 
349.8      (4) interview and hire secondary and post-secondary pupils 
349.9   for a minimum of six weeks and a maximum of 12 weeks; and 
349.10     (5) employ at least one secondary student for each 
349.11  post-secondary student employed, to the extent that there are 
349.12  sufficient qualifying secondary student applicants. 
349.13     (b) In order to be eligible to be hired as a secondary 
349.14  summer health intern by a hospital or, clinic, nursing facility, 
349.15  or home care provider, a pupil must: 
349.16     (1) intend to complete high school graduation requirements 
349.17  and be between the junior and senior year of high school; and 
349.18     (2) be from a school district in proximity to the facility; 
349.19  and 
349.20     (3) provide the facility with a letter of recommendation 
349.21  from a health occupations or science educator. 
349.22     (c) In order to be eligible to be hired as a post-secondary 
349.23  summer health care intern by a hospital or clinic, a pupil must: 
349.24     (1) intend to complete a health care training program or a 
349.25  two-year or four-year degree program and be planning on 
349.26  enrolling in or be enrolled in that training program or degree 
349.27  program; and 
349.28     (2) be enrolled in a Minnesota educational institution or 
349.29  be a resident of the state of Minnesota; priority must be given 
349.30  to applicants from a school district or an educational 
349.31  institution in proximity to the facility; and 
349.32     (3) provide the facility with a letter of recommendation 
349.33  from a health occupations or science educator. 
349.34     (d) Hospitals and, clinics, nursing facilities, and home 
349.35  care providers awarded grants may employ pupils as secondary and 
349.36  post-secondary summer health care interns beginning on or after 
350.1   June 15, 1993, if they agree to pay the intern, during the 
350.2   period before disbursement of state grant money, with money 
350.3   designated as the facility's 50 percent contribution towards 
350.4   internship costs.  
350.5      Subd. 3.  [GRANTS.] The commissioner, through the 
350.6   organization under contract, shall award separate grants to 
350.7   hospitals and, clinics, nursing facilities, and home care 
350.8   providers meeting the requirements of subdivision 2.  The grants 
350.9   must be used to pay one-half of the costs of employing secondary 
350.10  and post-secondary pupils in a hospital or, clinic, nursing 
350.11  facility, or home care setting during the course of the 
350.12  program.  No more than 50 percent of the participants may be 
350.13  post-secondary students, unless the program does not receive 
350.14  enough qualified secondary applicants per fiscal year.  No more 
350.15  than five pupils may be selected from any secondary or 
350.16  post-secondary institution to participate in the program and no 
350.17  more than one-half of the number of pupils selected may be from 
350.18  the seven-county metropolitan area. 
350.19     Subd. 4.  [CONTRACT.] The commissioner shall contract with 
350.20  a statewide, nonprofit organization representing facilities at 
350.21  which secondary and post-secondary summer health care interns 
350.22  will serve, to administer the grant program established by this 
350.23  section.  Grant funds that are not used in one fiscal year may 
350.24  be carried over to the next fiscal year.  The organization 
350.25  awarded the grant shall provide the commissioner with any 
350.26  information needed by the commissioner to evaluate the program, 
350.27  in the form and at the times specified by the commissioner. 
350.28     Sec. 2.  [144.1499] [PROMOTION OF HEALTH CARE AND LONG-TERM 
350.29  CARE CAREERS.] 
350.30     The commissioner of health, in consultation with an 
350.31  organization representing health care employers, long-term care 
350.32  employers, and educational institutions, may make grants to 
350.33  qualifying consortia as defined in section 116L.11, subdivision 
350.34  4, for intergenerational programs to encourage middle and high 
350.35  school students to work and volunteer in health care and 
350.36  long-term care settings.  To qualify for a grant under this 
351.1   section, a consortium shall: 
351.2      (1) develop a health and long-term care careers curriculum 
351.3   that provides career exploration and training in national skill 
351.4   standards for health care and long-term care and that is 
351.5   consistent with Minnesota graduation standards and other related 
351.6   requirements; 
351.7      (2) offer programs for high school students that provide 
351.8   training in health and long-term care careers with credits that 
351.9   articulate into post-secondary programs; and 
351.10     (3) provide technical support to the participating health 
351.11  care and long-term care employer to enable the use of the 
351.12  employer's facilities and programs for K-12 health and long-term 
351.13  care careers education. 
351.14     Sec. 3.  Minnesota Statutes 2000, section 144A.62, 
351.15  subdivision 1, is amended to read: 
351.16     Subdivision 1.  [ASSISTANCE WITH EATING AND DRINKING.] (a) 
351.17  Upon federal approval, a nursing home may employ resident 
351.18  attendants to assist with the activities authorized under 
351.19  subdivision 2.  The resident attendant will not shall be counted 
351.20  in the minimum staffing requirements under section 144A.04, 
351.21  subdivision 7. 
351.22     (b) The commissioner shall submit by May July 15, 2000 
351.23  2001, a new request for a federal waiver necessary to implement 
351.24  this section. 
351.25     Sec. 4.  Minnesota Statutes 2000, section 144A.62, 
351.26  subdivision 2, is amended to read: 
351.27     Subd. 2.  [DEFINITION.] (a) "Resident attendant" means an 
351.28  individual who assists residents in a nursing home with the one 
351.29  or more of the following activities of eating and drinking: 
351.30     (1) eating and drinking; and 
351.31     (2) transporting. 
351.32     (b) A resident attendant does not include an individual who:
351.33     (1) is a licensed health professional or a registered 
351.34  dietitian; 
351.35     (2) volunteers without monetary compensation; or 
351.36     (3) is a registered nursing assistant. 
352.1      Sec. 5.  Minnesota Statutes 2000, section 144A.62, 
352.2   subdivision 3, is amended to read: 
352.3      Subd. 3.  [REQUIREMENTS.] (a) A nursing home may not use on 
352.4   a full-time or other paid basis any individual as a resident 
352.5   attendant in the nursing home unless the individual: 
352.6      (1) has completed a training and competency evaluation 
352.7   program encompassing the tasks activities in subdivision 2 that 
352.8   the individual provides; 
352.9      (2) is competent to provide feeding and hydration services 
352.10  those activities; and 
352.11     (3) is under the supervision of the director of nursing. 
352.12     (b) A nursing home may not use a current employee as a 
352.13  resident attendant unless the employee satisfies the 
352.14  requirements of paragraph (a) and volunteers to be used in that 
352.15  capacity. 
352.16     Sec. 6.  Minnesota Statutes 2000, section 144A.62, 
352.17  subdivision 4, is amended to read: 
352.18     Subd. 4.  [EVALUATION.] The training and competency 
352.19  evaluation program may be facility based.  It must include, at a 
352.20  minimum, the training and competency standards for eating and 
352.21  drinking assistance the specific activities the attendant will 
352.22  be conducting contained in the nursing assistant training 
352.23  curriculum. 
352.24     Sec. 7.  Minnesota Statutes 2000, section 148.212, is 
352.25  amended to read: 
352.26     148.212 [TEMPORARY PERMIT.] 
352.27     Upon receipt of the applicable licensure or reregistration 
352.28  fee and permit fee, and in accordance with rules of the board, 
352.29  the board may issue a nonrenewable temporary permit to practice 
352.30  professional or practical nursing to an applicant for licensure 
352.31  or reregistration who is not the subject of a pending 
352.32  investigation or disciplinary action, nor disqualified for any 
352.33  other reason, under the following circumstances: 
352.34     (a) The applicant for licensure by examination under 
352.35  section 148.211, subdivision 1, has graduated from an approved 
352.36  nursing program within the 60 days preceding board receipt of an 
353.1   affidavit of graduation or transcript and has been authorized by 
353.2   the board to write the licensure examination for the first time 
353.3   in the United States.  The permit holder must practice 
353.4   professional or practical nursing under the direct supervision 
353.5   of a registered nurse.  The permit is valid from the date of 
353.6   issue until the date the board takes action on the application 
353.7   or for 60 days whichever occurs first. 
353.8      (b) The applicant for licensure by endorsement under 
353.9   section 148.211, subdivision 2, is currently licensed to 
353.10  practice professional or practical nursing in another state, 
353.11  territory, or Canadian province.  The permit is valid from 
353.12  submission of a proper request until the date of board action on 
353.13  the application. 
353.14     (c) The applicant for licensure by endorsement under 
353.15  section 148.211, subdivision 2, or for reregistration under 
353.16  section 148.231, subdivision 5, is currently registered in a 
353.17  formal, structured refresher course or its equivalent for nurses 
353.18  that includes clinical practice. 
353.19     (d) The applicant for licensure by examination under 
353.20  section 148.211, subdivision 1, as a registered nurse has been 
353.21  issued a commission on graduates of foreign nurse schools 
353.22  certificate, has completed all requirements for licensure except 
353.23  the licensing examination, and has been authorized by the board 
353.24  to write the licensure examination for the first time in the 
353.25  United States.  The permit holder must practice professional 
353.26  nursing under the direct supervision of a registered nurse.  The 
353.27  permit is valid from the date of issue until the date the board 
353.28  takes action on the application or for 60 days, whichever occurs 
353.29  first. 
353.30                             ARTICLE 7 
353.31                     REGULATION OF SUPPLEMENTAL 
353.32                     NURSING SERVICES AGENCIES
353.33     Section 1.  Minnesota Statutes 2000, section 144.057, is 
353.34  amended to read: 
353.35     144.057 [BACKGROUND STUDIES ON LICENSEES AND SUPPLEMENTAL 
353.36  NURSING SERVICES AGENCY PERSONNEL.] 
354.1      Subdivision 1.  [BACKGROUND STUDIES REQUIRED.] The 
354.2   commissioner of health shall contract with the commissioner of 
354.3   human services to conduct background studies of: 
354.4      (1) individuals providing services which have direct 
354.5   contact, as defined under section 245A.04, subdivision 3, with 
354.6   patients and residents in hospitals, boarding care homes, 
354.7   outpatient surgical centers licensed under sections 144.50 to 
354.8   144.58; nursing homes and home care agencies licensed under 
354.9   chapter 144A; residential care homes licensed under chapter 
354.10  144B, and board and lodging establishments that are registered 
354.11  to provide supportive or health supervision services under 
354.12  section 157.17; and 
354.13     (2) beginning July 1, 1999, all other employees in nursing 
354.14  homes licensed under chapter 144A, and boarding care homes 
354.15  licensed under sections 144.50 to 144.58.  A disqualification of 
354.16  an individual in this section shall disqualify the individual 
354.17  from positions allowing direct contact or access to patients or 
354.18  residents receiving services; 
354.19     (3) individuals employed by a supplemental nursing services 
354.20  agency, as defined under section 144A.70, who are providing 
354.21  services in health care facilities; and 
354.22     (4) controlling persons of a supplemental nursing services 
354.23  agency, as defined under section 144A.70. 
354.24     If a facility or program is licensed by the department of 
354.25  human services and subject to the background study provisions of 
354.26  chapter 245A and is also licensed by the department of health, 
354.27  the department of human services is solely responsible for the 
354.28  background studies of individuals in the jointly licensed 
354.29  programs. 
354.30     Subd. 2.  [RESPONSIBILITIES OF DEPARTMENT OF HUMAN 
354.31  SERVICES.] The department of human services shall conduct the 
354.32  background studies required by subdivision 1 in compliance with 
354.33  the provisions of chapter 245A and Minnesota Rules, parts 
354.34  9543.3000 to 9543.3090.  For the purpose of this section, the 
354.35  term "residential program" shall include all facilities 
354.36  described in subdivision 1.  The department of human services 
355.1   shall provide necessary forms and instructions, shall conduct 
355.2   the necessary background studies of individuals, and shall 
355.3   provide notification of the results of the studies to the 
355.4   facilities, supplemental nursing services agencies, individuals, 
355.5   and the commissioner of health.  Individuals shall be 
355.6   disqualified under the provisions of chapter 245A and Minnesota 
355.7   Rules, parts 9543.3000 to 9543.3090.  If an individual is 
355.8   disqualified, the department of human services shall notify the 
355.9   facility, the supplemental nursing services agency, and the 
355.10  individual and shall inform the individual of the right to 
355.11  request a reconsideration of the disqualification by submitting 
355.12  the request to the department of health. 
355.13     Subd. 3.  [RECONSIDERATIONS.] The commissioner of health 
355.14  shall review and decide reconsideration requests, including the 
355.15  granting of variances, in accordance with the procedures and 
355.16  criteria contained in chapter 245A and Minnesota Rules, parts 
355.17  9543.3000 to 9543.3090.  The commissioner's decision shall be 
355.18  provided to the individual and to the department of human 
355.19  services.  The commissioner's decision to grant or deny a 
355.20  reconsideration of disqualification is the final administrative 
355.21  agency action. 
355.22     Subd. 4.  [RESPONSIBILITIES OF FACILITIES AND AGENCIES.] 
355.23  Facilities and agencies described in subdivision 1 shall be 
355.24  responsible for cooperating with the departments in implementing 
355.25  the provisions of this section.  The responsibilities imposed on 
355.26  applicants and licensees under chapter 245A and Minnesota Rules, 
355.27  parts 9543.3000 to 9543.3090, shall apply to these 
355.28  facilities and supplemental nursing services agencies.  The 
355.29  provision of section 245A.04, subdivision 3, paragraph (e), 
355.30  shall apply to applicants, licensees, registrants, or an 
355.31  individual's refusal to cooperate with the completion of the 
355.32  background studies.  Supplemental nursing services agencies 
355.33  subject to the registration requirements in section 144A.71 must 
355.34  maintain records verifying compliance with the background study 
355.35  requirements under this section. 
355.36     Sec. 2.  [144A.70] [REGISTRATION OF SUPPLEMENTAL NURSING 
356.1   SERVICES AGENCIES; DEFINITIONS.] 
356.2      Subdivision 1.  [SCOPE.] As used in sections 144A.70 to 
356.3   144A.74, the terms defined in this section have the meanings 
356.4   given them. 
356.5      Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
356.6   commissioner of health. 
356.7      Subd. 3.  [CONTROLLING PERSON.] "Controlling person" means 
356.8   a business entity, officer, program administrator, or director 
356.9   whose responsibilities include the direction of the management 
356.10  or policies of a supplemental nursing services agency.  
356.11  Controlling person also means an individual who, directly or 
356.12  indirectly, beneficially owns an interest in a corporation, 
356.13  partnership, or other business association that is a controlling 
356.14  person. 
356.15     Subd. 4.  [HEALTH CARE FACILITY.] "Health care facility" 
356.16  means a hospital, boarding care home, or outpatient surgical 
356.17  center licensed under sections 144.50 to 144.58, a nursing home 
356.18  or home care agency licensed under this chapter, a residential 
356.19  care home, or a board and lodging establishment that is 
356.20  registered to provide supportive or health supervision services 
356.21  under section 157.17. 
356.22     Subd. 5.  [PERSON.] "Person" includes an individual, firm, 
356.23  corporation, partnership, or association. 
356.24     Subd. 6.  [SUPPLEMENTAL NURSING SERVICES 
356.25  AGENCY.] "Supplemental nursing services agency" means a person, 
356.26  firm, corporation, partnership, or association engaged for hire 
356.27  in the business of providing or procuring temporary employment 
356.28  in health care facilities for nurses, nursing assistants, nurse 
356.29  aides, and orderlies.  Supplemental nursing services agency does 
356.30  not include an individual who only engages in providing the 
356.31  individual's services on a temporary basis to health care 
356.32  facilities.  Supplemental nursing services agency also does not 
356.33  include any nursing services agency that is limited to providing 
356.34  temporary nursing personnel solely to one or more health care 
356.35  facilities owned or operated by the same person, firm, 
356.36  corporation, or partnership. 
357.1      Sec. 3.  [144A.71] [SUPPLEMENTAL NURSING SERVICES AGENCY 
357.2   REGISTRATION.] 
357.3      Subdivision 1.  [DUTY TO REGISTER.] A person who operates a 
357.4   supplemental nursing services agency shall register the agency 
357.5   with the commissioner.  Each separate location of the business 
357.6   of a supplemental nursing services agency shall register the 
357.7   agency with the commissioner.  Each separate location of the 
357.8   business of a supplemental nursing services agency shall have a 
357.9   separate registration. 
357.10     Subd. 2.  [APPLICATION INFORMATION AND FEE.] The 
357.11  commissioner shall establish forms and procedures for processing 
357.12  each supplemental nursing services agency registration 
357.13  application.  An application for a supplemental nursing services 
357.14  agency registration must include at least the following: 
357.15     (1) the names and addresses of the owner or owners of the 
357.16  supplemental nursing services agency; 
357.17     (2) if the owner is a corporation, copies of its articles 
357.18  of incorporation and current bylaws, together with the names and 
357.19  addresses of its officers and directors; 
357.20     (3) any other relevant information that the commissioner 
357.21  determines is necessary to properly evaluate an application for 
357.22  registration; and 
357.23     (4) the annual registration fee for a supplemental nursing 
357.24  services agency, which is $891. 
357.25     Subd. 3.  [REGISTRATION NOT TRANSFERABLE.] A registration 
357.26  issued by the commissioner according to this section is 
357.27  effective for a period of one year from the date of its issuance 
357.28  unless the registration is revoked or suspended under section 
357.29  144A.72, subdivision 2, or unless the supplemental nursing 
357.30  services agency is sold or ownership or management is 
357.31  transferred.  When a supplemental nursing services agency is 
357.32  sold or ownership or management is transferred, the registration 
357.33  of the agency must be voided and the new owner or operator may 
357.34  apply for a new registration. 
357.35     Sec. 4.  [144A.72] [REGISTRATION REQUIREMENTS.] 
357.36     The commissioner shall require that, as a condition of 
358.1   registration: 
358.2      (1) the supplemental nursing services agency shall document 
358.3   that each temporary employee provided to health care facilities 
358.4   currently meets the minimum licensing, training, and continuing 
358.5   education standards for the position in which the employee will 
358.6   be working; 
358.7      (2) the supplemental nursing services agency shall comply 
358.8   with all pertinent requirements relating to the health and other 
358.9   qualifications of personnel employed in health care facilities; 
358.10     (3) the supplemental nursing services agency must not 
358.11  restrict in any manner the employment opportunities of its 
358.12  employees; 
358.13     (4) the supplemental nursing services agency, when 
358.14  supplying temporary employees to a health care facility, and 
358.15  when requested by the facility to do so, shall agree that at 
358.16  least 30 percent of the total personnel hours supplied are 
358.17  during night, holiday, or weekend shifts; 
358.18     (5) the supplemental nursing services agency shall carry 
358.19  medical malpractice insurance to insure against the loss, 
358.20  damage, or expense incident to a claim arising out of the death 
358.21  or injury of any person as the result of negligence or 
358.22  malpractice in the provision of health care services by the 
358.23  supplemental nursing services agency or by any employee of the 
358.24  agency; and 
358.25     (6) the supplemental nursing services agency must not, in 
358.26  any contract with any employee or health care facility, require 
358.27  the payment of liquidated damages, employment fees, or other 
358.28  compensation should the employee be hired as a permanent 
358.29  employee of a health care facility. 
358.30     Sec. 5.  [144A.73] [COMPLAINT SYSTEM.] 
358.31     The commissioner shall establish a system for reporting 
358.32  complaints against a supplemental nursing services agency or its 
358.33  employees.  Complaints may be made by any member of the public.  
358.34  Written complaints must be forwarded to the employer of each 
358.35  person against whom a complaint is made.  The employer shall 
358.36  promptly report to the commissioner any corrective action taken. 
359.1      Sec. 6.  [144A.74] [MAXIMUM CHARGES.] 
359.2      A supplemental nursing services agency must not bill or 
359.3   receive payments from a nursing home licensed under this chapter 
359.4   at a rate higher than 150 percent of the weighted average wage 
359.5   rate for the applicable employee classification for the 
359.6   geographic group to which the nursing home is assigned under 
359.7   chapter 256B.  The weighted average wage rates must be 
359.8   determined by the commissioner of human services and reported to 
359.9   the commissioner of health on an annual basis.  Facilities shall 
359.10  provide information necessary to determine weighted average wage 
359.11  rates to the commissioner of human services in a format 
359.12  requested by the commissioner.  The maximum rate must include 
359.13  all charges for administrative fees, contract fees, or other 
359.14  special charges in addition to the hourly rates for the 
359.15  temporary nursing pool personnel supplied to a nursing home. 
359.16     Sec. 7.  Minnesota Statutes 2000, section 245A.04, 
359.17  subdivision 3, is amended to read: 
359.18     Subd. 3.  [BACKGROUND STUDY OF THE APPLICANT; DEFINITIONS.] 
359.19  (a) Before the commissioner issues a license, the commissioner 
359.20  shall conduct a study of the individuals specified in paragraph 
359.21  (c) (d), clauses (1) to (5), according to rules of the 
359.22  commissioner. 
359.23     Beginning January 1, 1997, the commissioner shall also 
359.24  conduct a study of employees providing direct contact services 
359.25  for nonlicensed personal care provider organizations described 
359.26  in paragraph (c) (d), clause (5). 
359.27     The commissioner shall recover the cost of these background 
359.28  studies through a fee of no more than $12 per study charged to 
359.29  the personal care provider organization.  The fees collected 
359.30  under this paragraph are appropriated to the commissioner for 
359.31  the purpose of conducting background studies. 
359.32     Beginning August 1, 1997, the commissioner shall conduct 
359.33  all background studies required under this chapter for adult 
359.34  foster care providers who are licensed by the commissioner of 
359.35  human services and registered under chapter 144D.  The 
359.36  commissioner shall conduct these background studies in 
360.1   accordance with this chapter.  The commissioner shall initiate a 
360.2   pilot project to conduct up to 5,000 background studies under 
360.3   this chapter in programs with joint licensure as home and 
360.4   community-based services and adult foster care for people with 
360.5   developmental disabilities when the license holder does not 
360.6   reside in the foster care residence. 
360.7      (b) Beginning July 1, 1998, the commissioner shall conduct 
360.8   a background study on individuals specified in 
360.9   paragraph (c) (d), clauses (1) to (5), who perform direct 
360.10  contact services in a nursing home or a home care agency 
360.11  licensed under chapter 144A or a boarding care home licensed 
360.12  under sections 144.50 to 144.58, when the subject of the study 
360.13  resides outside Minnesota; the study must be at least as 
360.14  comprehensive as that of a Minnesota resident and include a 
360.15  search of information from the criminal justice data 
360.16  communications network in the state where the subject of the 
360.17  study resides. 
360.18     (c) Beginning August 1, 2001, the commissioner shall 
360.19  conduct all background studies required under this chapter and 
360.20  initiated by supplemental nursing services agencies registered 
360.21  under chapter 144A.  Studies for the agencies must be initiated 
360.22  annually by each agency.  The commissioner shall conduct the 
360.23  background studies according to this chapter.  The commissioner 
360.24  shall recover the cost of the background studies through a fee 
360.25  of no more than $8 per study, charged to the supplemental 
360.26  nursing services agency.  The fees collected under this 
360.27  paragraph are appropriated to the commissioner for the purpose 
360.28  of conducting background studies. 
360.29     (d) The applicant, license holder, the registrant, bureau 
360.30  of criminal apprehension, the commissioner of health, and county 
360.31  agencies, after written notice to the individual who is the 
360.32  subject of the study, shall help with the study by giving the 
360.33  commissioner criminal conviction data and reports about the 
360.34  maltreatment of adults substantiated under section 626.557 and 
360.35  the maltreatment of minors in licensed programs substantiated 
360.36  under section 626.556.  The individuals to be studied shall 
361.1   include: 
361.2      (1) the applicant; 
361.3      (2) persons over the age of 13 living in the household 
361.4   where the licensed program will be provided; 
361.5      (3) current employees or contractors of the applicant who 
361.6   will have direct contact with persons served by the facility, 
361.7   agency, or program; 
361.8      (4) volunteers or student volunteers who have direct 
361.9   contact with persons served by the program to provide program 
361.10  services, if the contact is not directly supervised by the 
361.11  individuals listed in clause (1) or (3); and 
361.12     (5) any person who, as an individual or as a member of an 
361.13  organization, exclusively offers, provides, or arranges for 
361.14  personal care assistant services under the medical assistance 
361.15  program as authorized under sections 256B.04, subdivision 16, 
361.16  and 256B.0625, subdivision 19a. 
361.17     The juvenile courts shall also help with the study by 
361.18  giving the commissioner existing juvenile court records on 
361.19  individuals described in clause (2) relating to delinquency 
361.20  proceedings held within either the five years immediately 
361.21  preceding the application or the five years immediately 
361.22  preceding the individual's 18th birthday, whichever time period 
361.23  is longer.  The commissioner shall destroy juvenile records 
361.24  obtained pursuant to this subdivision when the subject of the 
361.25  records reaches age 23.  
361.26     For purposes of this section and Minnesota Rules, part 
361.27  9543.3070, a finding that a delinquency petition is proven in 
361.28  juvenile court shall be considered a conviction in state 
361.29  district court. 
361.30     For purposes of this subdivision, "direct contact" means 
361.31  providing face-to-face care, training, supervision, counseling, 
361.32  consultation, or medication assistance to persons served by a 
361.33  program.  For purposes of this subdivision, "directly supervised"
361.34  means an individual listed in clause (1), (3), or (5) is within 
361.35  sight or hearing of a volunteer to the extent that the 
361.36  individual listed in clause (1), (3), or (5) is capable at all 
362.1   times of intervening to protect the health and safety of the 
362.2   persons served by the program who have direct contact with the 
362.3   volunteer. 
362.4      A study of an individual in clauses (1) to (5) shall be 
362.5   conducted at least upon application for initial license or 
362.6   registration and reapplication for a license or registration.  
362.7   The commissioner is not required to conduct a study of an 
362.8   individual at the time of reapplication for a license or if the 
362.9   individual has been continuously affiliated with a foster care 
362.10  provider licensed by the commissioner of human services and 
362.11  registered under chapter 144D, other than a family day care or 
362.12  foster care license, if:  (i) a study of the individual was 
362.13  conducted either at the time of initial licensure or when the 
362.14  individual became affiliated with the license holder; (ii) the 
362.15  individual has been continuously affiliated with the license 
362.16  holder since the last study was conducted; and (iii) the 
362.17  procedure described in paragraph (d) (e) has been implemented 
362.18  and was in effect continuously since the last study was 
362.19  conducted.  For the purposes of this section, a physician 
362.20  licensed under chapter 147 is considered to be continuously 
362.21  affiliated upon the license holder's receipt from the 
362.22  commissioner of health or human services of the physician's 
362.23  background study results.  For individuals who are required to 
362.24  have background studies under clauses (1) to (5) and who have 
362.25  been continuously affiliated with a foster care provider that is 
362.26  licensed in more than one county, criminal conviction data may 
362.27  be shared among those counties in which the foster care programs 
362.28  are licensed.  A county agency's receipt of criminal conviction 
362.29  data from another county agency shall meet the criminal data 
362.30  background study requirements of this section. 
362.31     The commissioner may also conduct studies on individuals 
362.32  specified in clauses (3) and (4) when the studies are initiated 
362.33  by: 
362.34     (i) personnel pool agencies; 
362.35     (ii) temporary personnel agencies; 
362.36     (iii) educational programs that train persons by providing 
363.1   direct contact services in licensed programs; and 
363.2      (iv) professional services agencies that are not licensed 
363.3   and which contract with licensed programs to provide direct 
363.4   contact services or individuals who provide direct contact 
363.5   services. 
363.6      Studies on individuals in items (i) to (iv) must be 
363.7   initiated annually by these agencies, programs, and 
363.8   individuals.  Except for personal care provider 
363.9   organizations and supplemental nursing services agencies, no 
363.10  applicant, license holder, or individual who is the subject of 
363.11  the study shall pay any fees required to conduct the study. 
363.12     (1) At the option of the licensed facility, rather than 
363.13  initiating another background study on an individual required to 
363.14  be studied who has indicated to the licensed facility that a 
363.15  background study by the commissioner was previously completed, 
363.16  the facility may make a request to the commissioner for 
363.17  documentation of the individual's background study status, 
363.18  provided that: 
363.19     (i) the facility makes this request using a form provided 
363.20  by the commissioner; 
363.21     (ii) in making the request the facility informs the 
363.22  commissioner that either: 
363.23     (A) the individual has been continuously affiliated with a 
363.24  licensed facility since the individual's previous background 
363.25  study was completed, or since October 1, 1995, whichever is 
363.26  shorter; or 
363.27     (B) the individual is affiliated only with a personnel pool 
363.28  agency, a temporary personnel agency, an educational program 
363.29  that trains persons by providing direct contact services in 
363.30  licensed programs, or a professional services agency that is not 
363.31  licensed and which contracts with licensed programs to provide 
363.32  direct contact services or individuals who provide direct 
363.33  contact services; and 
363.34     (iii) the facility provides notices to the individual as 
363.35  required in paragraphs (a) to (d) (e), and that the facility is 
363.36  requesting written notification of the individual's background 
364.1   study status from the commissioner.  
364.2      (2) The commissioner shall respond to each request under 
364.3   paragraph (1) with a written or electronic notice to the 
364.4   facility and the study subject.  If the commissioner determines 
364.5   that a background study is necessary, the study shall be 
364.6   completed without further request from a licensed agency or 
364.7   notifications to the study subject.  
364.8      (3) When a background study is being initiated by a 
364.9   licensed facility or a foster care provider that is also 
364.10  registered under chapter 144D, a study subject affiliated with 
364.11  multiple licensed facilities may attach to the background study 
364.12  form a cover letter indicating the additional facilities' names, 
364.13  addresses, and background study identification numbers.  When 
364.14  the commissioner receives such notices, each facility identified 
364.15  by the background study subject shall be notified of the study 
364.16  results.  The background study notice sent to the subsequent 
364.17  agencies shall satisfy those facilities' responsibilities for 
364.18  initiating a background study on that individual. 
364.19     (d) (e) If an individual who is affiliated with a program 
364.20  or facility regulated by the department of human services or 
364.21  department of health or who is affiliated with a nonlicensed 
364.22  personal care provider organization, is convicted of a crime 
364.23  constituting a disqualification under subdivision 3d, the 
364.24  probation officer or corrections agent shall notify the 
364.25  commissioner of the conviction.  The commissioner, in 
364.26  consultation with the commissioner of corrections, shall develop 
364.27  forms and information necessary to implement this paragraph and 
364.28  shall provide the forms and information to the commissioner of 
364.29  corrections for distribution to local probation officers and 
364.30  corrections agents.  The commissioner shall inform individuals 
364.31  subject to a background study that criminal convictions for 
364.32  disqualifying crimes will be reported to the commissioner by the 
364.33  corrections system.  A probation officer, corrections agent, or 
364.34  corrections agency is not civilly or criminally liable for 
364.35  disclosing or failing to disclose the information required by 
364.36  this paragraph.  Upon receipt of disqualifying information, the 
365.1   commissioner shall provide the notifications required in 
365.2   subdivision 3a, as appropriate to agencies on record as having 
365.3   initiated a background study or making a request for 
365.4   documentation of the background study status of the individual.  
365.5   This paragraph does not apply to family day care and child 
365.6   foster care programs. 
365.7      (e) (f) The individual who is the subject of the study must 
365.8   provide the applicant or license holder with sufficient 
365.9   information to ensure an accurate study including the 
365.10  individual's first, middle, and last name; home address, city, 
365.11  county, and state of residence for the past five years; zip 
365.12  code; sex; date of birth; and driver's license number.  The 
365.13  applicant or license holder shall provide this information about 
365.14  an individual in paragraph (c) (d), clauses (1) to (5), on forms 
365.15  prescribed by the commissioner.  By January 1, 2000, for 
365.16  background studies conducted by the department of human 
365.17  services, the commissioner shall implement a system for the 
365.18  electronic transmission of:  (1) background study information to 
365.19  the commissioner; and (2) background study results to the 
365.20  license holder.  The commissioner may request additional 
365.21  information of the individual, which shall be optional for the 
365.22  individual to provide, such as the individual's social security 
365.23  number or race. 
365.24     (f) (g) Except for child foster care, adult foster care, 
365.25  and family day care homes, a study must include information 
365.26  related to names of substantiated perpetrators of maltreatment 
365.27  of vulnerable adults that has been received by the commissioner 
365.28  as required under section 626.557, subdivision 9c, paragraph 
365.29  (i), and the commissioner's records relating to the maltreatment 
365.30  of minors in licensed programs, information from juvenile courts 
365.31  as required in paragraph (c) (d) for persons listed in paragraph 
365.32  (c) (d), clause (2), and information from the bureau of criminal 
365.33  apprehension.  For child foster care, adult foster care, and 
365.34  family day care homes, the study must include information from 
365.35  the county agency's record of substantiated maltreatment of 
365.36  adults, and the maltreatment of minors, information from 
366.1   juvenile courts as required in paragraph (c) (d) for persons 
366.2   listed in paragraph (c) (d), clause (2), and information from 
366.3   the bureau of criminal apprehension.  The commissioner may also 
366.4   review arrest and investigative information from the bureau of 
366.5   criminal apprehension, the commissioner of health, a county 
366.6   attorney, county sheriff, county agency, local chief of police, 
366.7   other states, the courts, or the Federal Bureau of Investigation 
366.8   if the commissioner has reasonable cause to believe the 
366.9   information is pertinent to the disqualification of an 
366.10  individual listed in paragraph (c) (d), clauses (1) to (5).  The 
366.11  commissioner is not required to conduct more than one review of 
366.12  a subject's records from the Federal Bureau of Investigation if 
366.13  a review of the subject's criminal history with the Federal 
366.14  Bureau of Investigation has already been completed by the 
366.15  commissioner and there has been no break in the subject's 
366.16  affiliation with the license holder who initiated the background 
366.17  studies. 
366.18     When the commissioner has reasonable cause to believe that 
366.19  further pertinent information may exist on the subject, the 
366.20  subject shall provide a set of classifiable fingerprints 
366.21  obtained from an authorized law enforcement agency.  For 
366.22  purposes of requiring fingerprints, the commissioner shall be 
366.23  considered to have reasonable cause under, but not limited to, 
366.24  the following circumstances: 
366.25     (1) information from the bureau of criminal apprehension 
366.26  indicates that the subject is a multistate offender; 
366.27     (2) information from the bureau of criminal apprehension 
366.28  indicates that multistate offender status is undetermined; or 
366.29     (3) the commissioner has received a report from the subject 
366.30  or a third party indicating that the subject has a criminal 
366.31  history in a jurisdiction other than Minnesota. 
366.32     (g) (h) An applicant's or, license holder's, or 
366.33  registrant's failure or refusal to cooperate with the 
366.34  commissioner is reasonable cause to disqualify a subject, deny a 
366.35  license application or immediately suspend, suspend, or revoke a 
366.36  license or registration.  Failure or refusal of an individual to 
367.1   cooperate with the study is just cause for denying or 
367.2   terminating employment of the individual if the individual's 
367.3   failure or refusal to cooperate could cause the applicant's 
367.4   application to be denied or the license holder's license to be 
367.5   immediately suspended, suspended, or revoked. 
367.6      (h) (i) The commissioner shall not consider an application 
367.7   to be complete until all of the information required to be 
367.8   provided under this subdivision has been received.  
367.9      (i) (j) No person in paragraph (c) (d), clause (1), (2), 
367.10  (3), (4), or (5), who is disqualified as a result of this 
367.11  section may be retained by the agency in a position involving 
367.12  direct contact with persons served by the program. 
367.13     (j) (k) Termination of persons in paragraph (c) (d), clause 
367.14  (1), (2), (3), (4), or (5), made in good faith reliance on a 
367.15  notice of disqualification provided by the commissioner shall 
367.16  not subject the applicant or license holder to civil liability. 
367.17     (k) (l) The commissioner may establish records to fulfill 
367.18  the requirements of this section. 
367.19     (l) (m) The commissioner may not disqualify an individual 
367.20  subject to a study under this section because that person has, 
367.21  or has had, a mental illness as defined in section 245.462, 
367.22  subdivision 20. 
367.23     (m) (n) An individual subject to disqualification under 
367.24  this subdivision has the applicable rights in subdivision 3a, 
367.25  3b, or 3c. 
367.26     (n) (o) For the purposes of background studies completed by 
367.27  tribal organizations performing licensing activities otherwise 
367.28  required of the commissioner under this chapter, after obtaining 
367.29  consent from the background study subject, tribal licensing 
367.30  agencies shall have access to criminal history data in the same 
367.31  manner as county licensing agencies and private licensing 
367.32  agencies under this chapter. 
367.33     Sec. 8.  Minnesota Statutes 2000, section 245A.04, 
367.34  subdivision 3a, is amended to read: 
367.35     Subd. 3a.  [NOTIFICATION TO SUBJECT AND LICENSE HOLDER OF 
367.36  STUDY RESULTS; DETERMINATION OF RISK OF HARM.] (a) The 
368.1   commissioner shall notify the applicant or, license holder, or 
368.2   registrant and the individual who is the subject of the study, 
368.3   in writing or by electronic transmission, of the results of the 
368.4   study.  When the study is completed, a notice that the study was 
368.5   undertaken and completed shall be maintained in the personnel 
368.6   files of the program.  For studies on individuals pertaining to 
368.7   a license to provide family day care or group family day care, 
368.8   foster care for children in the provider's own home, or foster 
368.9   care or day care services for adults in the provider's own home, 
368.10  the commissioner is not required to provide a separate notice of 
368.11  the background study results to the individual who is the 
368.12  subject of the study unless the study results in a 
368.13  disqualification of the individual. 
368.14     The commissioner shall notify the individual studied if the 
368.15  information in the study indicates the individual is 
368.16  disqualified from direct contact with persons served by the 
368.17  program.  The commissioner shall disclose the information 
368.18  causing disqualification and instructions on how to request a 
368.19  reconsideration of the disqualification to the individual 
368.20  studied.  An applicant or license holder who is not the subject 
368.21  of the study shall be informed that the commissioner has found 
368.22  information that disqualifies the subject from direct contact 
368.23  with persons served by the program.  However, only the 
368.24  individual studied must be informed of the information contained 
368.25  in the subject's background study unless the only basis for the 
368.26  disqualification is failure to cooperate, the Data Practices Act 
368.27  provides for release of the information, or the individual 
368.28  studied authorizes the release of the information. 
368.29     (b) If the commissioner determines that the individual 
368.30  studied has a disqualifying characteristic, the commissioner 
368.31  shall review the information immediately available and make a 
368.32  determination as to the subject's immediate risk of harm to 
368.33  persons served by the program where the individual studied will 
368.34  have direct contact.  The commissioner shall consider all 
368.35  relevant information available, including the following factors 
368.36  in determining the immediate risk of harm:  the recency of the 
369.1   disqualifying characteristic; the recency of discharge from 
369.2   probation for the crimes; the number of disqualifying 
369.3   characteristics; the intrusiveness or violence of the 
369.4   disqualifying characteristic; the vulnerability of the victim 
369.5   involved in the disqualifying characteristic; and the similarity 
369.6   of the victim to the persons served by the program where the 
369.7   individual studied will have direct contact.  The commissioner 
369.8   may determine that the evaluation of the information immediately 
369.9   available gives the commissioner reason to believe one of the 
369.10  following: 
369.11     (1) The individual poses an imminent risk of harm to 
369.12  persons served by the program where the individual studied will 
369.13  have direct contact.  If the commissioner determines that an 
369.14  individual studied poses an imminent risk of harm to persons 
369.15  served by the program where the individual studied will have 
369.16  direct contact, the individual and the license holder must be 
369.17  sent a notice of disqualification.  The commissioner shall order 
369.18  the license holder to immediately remove the individual studied 
369.19  from direct contact.  The notice to the individual studied must 
369.20  include an explanation of the basis of this determination. 
369.21     (2) The individual poses a risk of harm requiring 
369.22  continuous supervision while providing direct contact services 
369.23  during the period in which the subject may request a 
369.24  reconsideration.  If the commissioner determines that an 
369.25  individual studied poses a risk of harm that requires continuous 
369.26  supervision, the individual and the license holder must be sent 
369.27  a notice of disqualification.  The commissioner shall order the 
369.28  license holder to immediately remove the individual studied from 
369.29  direct contact services or assure that the individual studied is 
369.30  within sight or hearing of another staff person when providing 
369.31  direct contact services during the period in which the 
369.32  individual may request a reconsideration of the 
369.33  disqualification.  If the individual studied does not submit a 
369.34  timely request for reconsideration, or the individual submits a 
369.35  timely request for reconsideration, but the disqualification is 
369.36  not set aside for that license holder, the license holder will 
370.1   be notified of the disqualification and ordered to immediately 
370.2   remove the individual from any position allowing direct contact 
370.3   with persons receiving services from the license holder. 
370.4      (3) The individual does not pose an imminent risk of harm 
370.5   or a risk of harm requiring continuous supervision while 
370.6   providing direct contact services during the period in which the 
370.7   subject may request a reconsideration.  If the commissioner 
370.8   determines that an individual studied does not pose a risk of 
370.9   harm that requires continuous supervision, only the individual 
370.10  must be sent a notice of disqualification.  The license holder 
370.11  must be sent a notice that more time is needed to complete the 
370.12  individual's background study.  If the individual studied 
370.13  submits a timely request for reconsideration, and if the 
370.14  disqualification is set aside for that license holder, the 
370.15  license holder will receive the same notification received by 
370.16  license holders in cases where the individual studied has no 
370.17  disqualifying characteristic.  If the individual studied does 
370.18  not submit a timely request for reconsideration, or the 
370.19  individual submits a timely request for reconsideration, but the 
370.20  disqualification is not set aside for that license holder, the 
370.21  license holder will be notified of the disqualification and 
370.22  ordered to immediately remove the individual from any position 
370.23  allowing direct contact with persons receiving services from the 
370.24  license holder.  
370.25     (c) County licensing agencies performing duties under this 
370.26  subdivision may develop an alternative system for determining 
370.27  the subject's immediate risk of harm to persons served by the 
370.28  program, providing the notices under paragraph (b), and 
370.29  documenting the action taken by the county licensing agency.  
370.30  Each county licensing agency's implementation of the alternative 
370.31  system is subject to approval by the commissioner.  
370.32  Notwithstanding this alternative system, county licensing 
370.33  agencies shall complete the requirements of paragraph (a). 
370.34     Sec. 9.  Minnesota Statutes 2000, section 245A.04, 
370.35  subdivision 3b, is amended to read: 
370.36     Subd. 3b.  [RECONSIDERATION OF DISQUALIFICATION.] (a) The 
371.1   individual who is the subject of the disqualification may 
371.2   request a reconsideration of the disqualification.  
371.3      The individual must submit the request for reconsideration 
371.4   to the commissioner in writing.  A request for reconsideration 
371.5   for an individual who has been sent a notice of disqualification 
371.6   under subdivision 3a, paragraph (b), clause (1) or (2), must be 
371.7   submitted within 30 calendar days of the disqualified 
371.8   individual's receipt of the notice of disqualification.  A 
371.9   request for reconsideration for an individual who has been sent 
371.10  a notice of disqualification under subdivision 3a, paragraph 
371.11  (b), clause (3), must be submitted within 15 calendar days of 
371.12  the disqualified individual's receipt of the notice of 
371.13  disqualification.  Removal of a disqualified individual from 
371.14  direct contact shall be ordered if the individual does not 
371.15  request reconsideration within the prescribed time, and for an 
371.16  individual who submits a timely request for reconsideration, if 
371.17  the disqualification is not set aside.  The individual must 
371.18  present information showing that: 
371.19     (1) the information the commissioner relied upon is 
371.20  incorrect or inaccurate.  If the basis of a reconsideration 
371.21  request is that a maltreatment determination or disposition 
371.22  under section 626.556 or 626.557 is incorrect, and the 
371.23  commissioner has issued a final order in an appeal of that 
371.24  determination or disposition under section 256.045, the 
371.25  commissioner's order is conclusive on the issue of maltreatment; 
371.26  or 
371.27     (2) the subject of the study does not pose a risk of harm 
371.28  to any person served by the applicant or, license holder, or 
371.29  registrant. 
371.30     (b) The commissioner may set aside the disqualification 
371.31  under this section if the commissioner finds that the 
371.32  information the commissioner relied upon is incorrect or the 
371.33  individual does not pose a risk of harm to any person served by 
371.34  the applicant or, license holder, or registrant.  In determining 
371.35  that an individual does not pose a risk of harm, the 
371.36  commissioner shall consider the consequences of the event or 
372.1   events that lead to disqualification, whether there is more than 
372.2   one disqualifying event, the vulnerability of the victim at the 
372.3   time of the event, the time elapsed without a repeat of the same 
372.4   or similar event, documentation of successful completion by the 
372.5   individual studied of training or rehabilitation pertinent to 
372.6   the event, and any other information relevant to 
372.7   reconsideration.  In reviewing a disqualification under this 
372.8   section, the commissioner shall give preeminent weight to the 
372.9   safety of each person to be served by the license holder or, 
372.10  applicant, or registrant over the interests of the license 
372.11  holder or, applicant, or registrant. 
372.12     (c) Unless the information the commissioner relied on in 
372.13  disqualifying an individual is incorrect, the commissioner may 
372.14  not set aside the disqualification of an individual in 
372.15  connection with a license to provide family day care for 
372.16  children, foster care for children in the provider's own home, 
372.17  or foster care or day care services for adults in the provider's 
372.18  own home if: 
372.19     (1) less than ten years have passed since the discharge of 
372.20  the sentence imposed for the offense; and the individual has 
372.21  been convicted of a violation of any offense listed in sections 
372.22  609.20 (manslaughter in the first degree), 609.205 (manslaughter 
372.23  in the second degree), criminal vehicular homicide under 609.21 
372.24  (criminal vehicular homicide and injury), 609.215 (aiding 
372.25  suicide or aiding attempted suicide), felony violations under 
372.26  609.221 to 609.2231 (assault in the first, second, third, or 
372.27  fourth degree), 609.713 (terroristic threats), 609.235 (use of 
372.28  drugs to injure or to facilitate crime), 609.24 (simple 
372.29  robbery), 609.245 (aggravated robbery), 609.25 (kidnapping), 
372.30  609.255 (false imprisonment), 609.561 or 609.562 (arson in the 
372.31  first or second degree), 609.71 (riot), burglary in the first or 
372.32  second degree under 609.582 (burglary), 609.66 (dangerous 
372.33  weapon), 609.665 (spring guns), 609.67 (machine guns and 
372.34  short-barreled shotguns), 609.749 (harassment; stalking), 
372.35  152.021 or 152.022 (controlled substance crime in the first or 
372.36  second degree), 152.023, subdivision 1, clause (3) or (4), or 
373.1   subdivision 2, clause (4) (controlled substance crime in the 
373.2   third degree), 152.024, subdivision 1, clause (2), (3), or (4) 
373.3   (controlled substance crime in the fourth degree), 609.224, 
373.4   subdivision 2, paragraph (c) (fifth-degree assault by a 
373.5   caregiver against a vulnerable adult), 609.228 (great bodily 
373.6   harm caused by distribution of drugs), 609.23 (mistreatment of 
373.7   persons confined), 609.231 (mistreatment of residents or 
373.8   patients), 609.2325 (criminal abuse of a vulnerable adult), 
373.9   609.233 (criminal neglect of a vulnerable adult), 609.2335 
373.10  (financial exploitation of a vulnerable adult), 609.234 (failure 
373.11  to report), 609.265 (abduction), 609.2664 to 609.2665 
373.12  (manslaughter of an unborn child in the first or second degree), 
373.13  609.267 to 609.2672 (assault of an unborn child in the first, 
373.14  second, or third degree), 609.268 (injury or death of an unborn 
373.15  child in the commission of a crime), 617.293 (disseminating or 
373.16  displaying harmful material to minors), a gross misdemeanor 
373.17  offense under 609.324, subdivision 1 (other prohibited acts), a 
373.18  gross misdemeanor offense under 609.378 (neglect or endangerment 
373.19  of a child), a gross misdemeanor offense under 609.377 
373.20  (malicious punishment of a child), 609.72, subdivision 3 
373.21  (disorderly conduct against a vulnerable adult); or an attempt 
373.22  or conspiracy to commit any of these offenses, as each of these 
373.23  offenses is defined in Minnesota Statutes; or an offense in any 
373.24  other state, the elements of which are substantially similar to 
373.25  the elements of any of the foregoing offenses; 
373.26     (2) regardless of how much time has passed since the 
373.27  discharge of the sentence imposed for the offense, the 
373.28  individual was convicted of a violation of any offense listed in 
373.29  sections 609.185 to 609.195 (murder in the first, second, or 
373.30  third degree), 609.2661 to 609.2663 (murder of an unborn child 
373.31  in the first, second, or third degree), a felony offense under 
373.32  609.377 (malicious punishment of a child), a felony offense 
373.33  under 609.324, subdivision 1 (other prohibited acts), a felony 
373.34  offense under 609.378 (neglect or endangerment of a child), 
373.35  609.322 (solicitation, inducement, and promotion of 
373.36  prostitution), 609.342 to 609.345 (criminal sexual conduct in 
374.1   the first, second, third, or fourth degree), 609.352 
374.2   (solicitation of children to engage in sexual conduct), 617.246 
374.3   (use of minors in a sexual performance), 617.247 (possession of 
374.4   pictorial representations of a minor), 609.365 (incest), a 
374.5   felony offense under sections 609.2242 and 609.2243 (domestic 
374.6   assault), a felony offense of spousal abuse, a felony offense of 
374.7   child abuse or neglect, a felony offense of a crime against 
374.8   children, or an attempt or conspiracy to commit any of these 
374.9   offenses as defined in Minnesota Statutes, or an offense in any 
374.10  other state, the elements of which are substantially similar to 
374.11  any of the foregoing offenses; 
374.12     (3) within the seven years preceding the study, the 
374.13  individual committed an act that constitutes maltreatment of a 
374.14  child under section 626.556, subdivision 10e, and that resulted 
374.15  in substantial bodily harm as defined in section 609.02, 
374.16  subdivision 7a, or substantial mental or emotional harm as 
374.17  supported by competent psychological or psychiatric evidence; or 
374.18     (4) within the seven years preceding the study, the 
374.19  individual was determined under section 626.557 to be the 
374.20  perpetrator of a substantiated incident of maltreatment of a 
374.21  vulnerable adult that resulted in substantial bodily harm as 
374.22  defined in section 609.02, subdivision 7a, or substantial mental 
374.23  or emotional harm as supported by competent psychological or 
374.24  psychiatric evidence. 
374.25     In the case of any ground for disqualification under 
374.26  clauses (1) to (4), if the act was committed by an individual 
374.27  other than the applicant or, license holder, or registrant 
374.28  residing in the applicant's or, license holder's, or 
374.29  registrant's home, the applicant or, license holder, or 
374.30  registrant may seek reconsideration when the individual who 
374.31  committed the act no longer resides in the home.  
374.32     The disqualification periods provided under clauses (1), 
374.33  (3), and (4) are the minimum applicable disqualification 
374.34  periods.  The commissioner may determine that an individual 
374.35  should continue to be disqualified from licensure or 
374.36  registration because the license holder or, registrant, or 
375.1   applicant poses a risk of harm to a person served by that 
375.2   individual after the minimum disqualification period has passed. 
375.3      (d) The commissioner shall respond in writing or by 
375.4   electronic transmission to all reconsideration requests for 
375.5   which the basis for the request is that the information relied 
375.6   upon by the commissioner to disqualify is incorrect or 
375.7   inaccurate within 30 working days of receipt of a request and 
375.8   all relevant information.  If the basis for the request is that 
375.9   the individual does not pose a risk of harm, the commissioner 
375.10  shall respond to the request within 15 working days after 
375.11  receiving the request for reconsideration and all relevant 
375.12  information.  If the disqualification is set aside, the 
375.13  commissioner shall notify the applicant or license holder in 
375.14  writing or by electronic transmission of the decision. 
375.15     (e) Except as provided in subdivision 3c, the 
375.16  commissioner's decision to disqualify an individual, including 
375.17  the decision to grant or deny a rescission or set aside a 
375.18  disqualification under this section, is the final administrative 
375.19  agency action and shall not be subject to further review in a 
375.20  contested case under chapter 14 involving a negative licensing 
375.21  appeal taken in response to the disqualification or involving an 
375.22  accuracy and completeness appeal under section 13.04. 
375.23     Sec. 10.  Minnesota Statutes 2000, section 245A.04, 
375.24  subdivision 3d, is amended to read: 
375.25     Subd. 3d.  [DISQUALIFICATION.] (a) Except as provided in 
375.26  paragraph (b), when a background study completed under 
375.27  subdivision 3 shows any of the following:  a conviction of one 
375.28  or more crimes listed in clauses (1) to (4); the individual has 
375.29  admitted to or a preponderance of the evidence indicates the 
375.30  individual has committed an act or acts that meet the definition 
375.31  of any of the crimes listed in clauses (1) to (4); or an 
375.32  administrative determination listed under clause (4), the 
375.33  individual shall be disqualified from any position allowing 
375.34  direct contact with persons receiving services from the license 
375.35  holder or registrant: 
375.36     (1) regardless of how much time has passed since the 
376.1   discharge of the sentence imposed for the offense, and unless 
376.2   otherwise specified, regardless of the level of the conviction, 
376.3   the individual was convicted of any of the following offenses:  
376.4   sections 609.185 (murder in the first degree); 609.19 (murder in 
376.5   the second degree); 609.195 (murder in the third degree); 
376.6   609.2661 (murder of an unborn child in the first degree); 
376.7   609.2662 (murder of an unborn child in the second degree); 
376.8   609.2663 (murder of an unborn child in the third degree); 
376.9   609.322 (solicitation, inducement, and promotion of 
376.10  prostitution); 609.342 (criminal sexual conduct in the first 
376.11  degree); 609.343 (criminal sexual conduct in the second degree); 
376.12  609.344 (criminal sexual conduct in the third degree); 609.345 
376.13  (criminal sexual conduct in the fourth degree); 609.352 
376.14  (solicitation of children to engage in sexual conduct); 609.365 
376.15  (incest); felony offense under 609.377 (malicious punishment of 
376.16  a child); a felony offense under 609.378 (neglect or 
376.17  endangerment of a child); a felony offense under 609.324, 
376.18  subdivision 1 (other prohibited acts); 617.246 (use of minors in 
376.19  sexual performance prohibited); 617.247 (possession of pictorial 
376.20  representations of minors); a felony offense under sections 
376.21  609.2242 and 609.2243 (domestic assault), a felony offense of 
376.22  spousal abuse, a felony offense of child abuse or neglect, a 
376.23  felony offense of a crime against children; or attempt or 
376.24  conspiracy to commit any of these offenses as defined in 
376.25  Minnesota Statutes, or an offense in any other state or country, 
376.26  where the elements are substantially similar to any of the 
376.27  offenses listed in this clause; 
376.28     (2) if less than 15 years have passed since the discharge 
376.29  of the sentence imposed for the offense; and the individual has 
376.30  received a felony conviction for a violation of any of these 
376.31  offenses:  sections 609.20 (manslaughter in the first degree); 
376.32  609.205 (manslaughter in the second degree); 609.21 (criminal 
376.33  vehicular homicide and injury); 609.215 (suicide); 609.221 to 
376.34  609.2231 (assault in the first, second, third, or fourth 
376.35  degree); repeat offenses under 609.224 (assault in the fifth 
376.36  degree); repeat offenses under 609.3451 (criminal sexual conduct 
377.1   in the fifth degree); 609.713 (terroristic threats); 609.235 
377.2   (use of drugs to injure or facilitate crime); 609.24 (simple 
377.3   robbery); 609.245 (aggravated robbery); 609.25 (kidnapping); 
377.4   609.255 (false imprisonment); 609.561 (arson in the first 
377.5   degree); 609.562 (arson in the second degree); 609.563 (arson in 
377.6   the third degree); repeat offenses under 617.23 (indecent 
377.7   exposure; penalties); repeat offenses under 617.241 (obscene 
377.8   materials and performances; distribution and exhibition 
377.9   prohibited; penalty); 609.71 (riot); 609.66 (dangerous weapons); 
377.10  609.67 (machine guns and short-barreled shotguns); 609.749 
377.11  (harassment; stalking; penalties); 609.228 (great bodily harm 
377.12  caused by distribution of drugs); 609.2325 (criminal abuse of a 
377.13  vulnerable adult); 609.2664 (manslaughter of an unborn child in 
377.14  the first degree); 609.2665 (manslaughter of an unborn child in 
377.15  the second degree); 609.267 (assault of an unborn child in the 
377.16  first degree); 609.2671 (assault of an unborn child in the 
377.17  second degree); 609.268 (injury or death of an unborn child in 
377.18  the commission of a crime); 609.52 (theft); 609.2335 (financial 
377.19  exploitation of a vulnerable adult); 609.521 (possession of 
377.20  shoplifting gear); 609.582 (burglary); 609.625 (aggravated 
377.21  forgery); 609.63 (forgery); 609.631 (check forgery; offering a 
377.22  forged check); 609.635 (obtaining signature by false pretense); 
377.23  609.27 (coercion); 609.275 (attempt to coerce); 609.687 
377.24  (adulteration); 260C.301 (grounds for termination of parental 
377.25  rights); and chapter 152 (drugs; controlled substance).  An 
377.26  attempt or conspiracy to commit any of these offenses, as each 
377.27  of these offenses is defined in Minnesota Statutes; or an 
377.28  offense in any other state or country, the elements of which are 
377.29  substantially similar to the elements of the offenses in this 
377.30  clause.  If the individual studied is convicted of one of the 
377.31  felonies listed in this clause, but the sentence is a gross 
377.32  misdemeanor or misdemeanor disposition, the lookback period for 
377.33  the conviction is the period applicable to the disposition, that 
377.34  is the period for gross misdemeanors or misdemeanors; 
377.35     (3) if less than ten years have passed since the discharge 
377.36  of the sentence imposed for the offense; and the individual has 
378.1   received a gross misdemeanor conviction for a violation of any 
378.2   of the following offenses:  sections 609.224 (assault in the 
378.3   fifth degree); 609.2242 and 609.2243 (domestic assault); 
378.4   violation of an order for protection under 518B.01, subdivision 
378.5   14; 609.3451 (criminal sexual conduct in the fifth degree); 
378.6   repeat offenses under 609.746 (interference with privacy); 
378.7   repeat offenses under 617.23 (indecent exposure); 617.241 
378.8   (obscene materials and performances); 617.243 (indecent 
378.9   literature, distribution); 617.293 (harmful materials; 
378.10  dissemination and display to minors prohibited); 609.71 (riot); 
378.11  609.66 (dangerous weapons); 609.749 (harassment; stalking; 
378.12  penalties); 609.224, subdivision 2, paragraph (c) (assault in 
378.13  the fifth degree by a caregiver against a vulnerable adult); 
378.14  609.23 (mistreatment of persons confined); 609.231 (mistreatment 
378.15  of residents or patients); 609.2325 (criminal abuse of a 
378.16  vulnerable adult); 609.233 (criminal neglect of a vulnerable 
378.17  adult); 609.2335 (financial exploitation of a vulnerable adult); 
378.18  609.234 (failure to report maltreatment of a vulnerable adult); 
378.19  609.72, subdivision 3 (disorderly conduct against a vulnerable 
378.20  adult); 609.265 (abduction); 609.378 (neglect or endangerment of 
378.21  a child); 609.377 (malicious punishment of a child); 609.324, 
378.22  subdivision 1a (other prohibited acts; minor engaged in 
378.23  prostitution); 609.33 (disorderly house); 609.52 (theft); 
378.24  609.582 (burglary); 609.631 (check forgery; offering a forged 
378.25  check); 609.275 (attempt to coerce); or an attempt or conspiracy 
378.26  to commit any of these offenses, as each of these offenses is 
378.27  defined in Minnesota Statutes; or an offense in any other state 
378.28  or country, the elements of which are substantially similar to 
378.29  the elements of any of the offenses listed in this clause.  If 
378.30  the defendant is convicted of one of the gross misdemeanors 
378.31  listed in this clause, but the sentence is a misdemeanor 
378.32  disposition, the lookback period for the conviction is the 
378.33  period applicable to misdemeanors; or 
378.34     (4) if less than seven years have passed since the 
378.35  discharge of the sentence imposed for the offense; and the 
378.36  individual has received a misdemeanor conviction for a violation 
379.1   of any of the following offenses:  sections 609.224 (assault in 
379.2   the fifth degree); 609.2242 (domestic assault); violation of an 
379.3   order for protection under 518B.01 (Domestic Abuse Act); 
379.4   violation of an order for protection under 609.3232 (protective 
379.5   order authorized; procedures; penalties); 609.746 (interference 
379.6   with privacy); 609.79 (obscene or harassing phone calls); 
379.7   609.795 (letter, telegram, or package; opening; harassment); 
379.8   617.23 (indecent exposure; penalties); 609.2672 (assault of an 
379.9   unborn child in the third degree); 617.293 (harmful materials; 
379.10  dissemination and display to minors prohibited); 609.66 
379.11  (dangerous weapons); 609.665 (spring guns); 609.2335 (financial 
379.12  exploitation of a vulnerable adult); 609.234 (failure to report 
379.13  maltreatment of a vulnerable adult); 609.52 (theft); 609.27 
379.14  (coercion); or an attempt or conspiracy to commit any of these 
379.15  offenses, as each of these offenses is defined in Minnesota 
379.16  Statutes; or an offense in any other state or country, the 
379.17  elements of which are substantially similar to the elements of 
379.18  any of the offenses listed in this clause; failure to make 
379.19  required reports under section 626.556, subdivision 3, or 
379.20  626.557, subdivision 3, for incidents in which:  (i) the final 
379.21  disposition under section 626.556 or 626.557 was substantiated 
379.22  maltreatment, and (ii) the maltreatment was recurring or 
379.23  serious; or substantiated serious or recurring maltreatment of a 
379.24  minor under section 626.556 or of a vulnerable adult under 
379.25  section 626.557 for which there is a preponderance of evidence 
379.26  that the maltreatment occurred, and that the subject was 
379.27  responsible for the maltreatment. 
379.28     For the purposes of this section, "serious maltreatment" 
379.29  means sexual abuse; maltreatment resulting in death; or 
379.30  maltreatment resulting in serious injury which reasonably 
379.31  requires the care of a physician whether or not the care of a 
379.32  physician was sought; or abuse resulting in serious injury.  For 
379.33  purposes of this section, "abuse resulting in serious injury" 
379.34  means:  bruises, bites, skin laceration or tissue damage; 
379.35  fractures; dislocations; evidence of internal injuries; head 
379.36  injuries with loss of consciousness; extensive second-degree or 
380.1   third-degree burns and other burns for which complications are 
380.2   present; extensive second-degree or third-degree frostbite, and 
380.3   others for which complications are present; irreversible 
380.4   mobility or avulsion of teeth; injuries to the eyeball; 
380.5   ingestion of foreign substances and objects that are harmful; 
380.6   near drowning; and heat exhaustion or sunstroke.  For purposes 
380.7   of this section, "care of a physician" is treatment received or 
380.8   ordered by a physician, but does not include diagnostic testing, 
380.9   assessment, or observation.  For the purposes of this section, 
380.10  "recurring maltreatment" means more than one incident of 
380.11  maltreatment for which there is a preponderance of evidence that 
380.12  the maltreatment occurred, and that the subject was responsible 
380.13  for the maltreatment. 
380.14     (b) If the subject of a background study is licensed by a 
380.15  health-related licensing board, the board shall make the 
380.16  determination regarding a disqualification under this 
380.17  subdivision based on a finding of substantiated maltreatment 
380.18  under section 626.556 or 626.557.  The commissioner shall notify 
380.19  the health-related licensing board if a background study shows 
380.20  that a licensee would be disqualified because of substantiated 
380.21  maltreatment and the board shall make a determination under 
380.22  section 214.104. 
380.23     Sec. 11.  [REPORT ON SUPPLEMENTAL NURSING SERVICES AGENCY 
380.24  USE.] 
380.25     Beginning July 1, 2001, through June 30, 2003, the 
380.26  commissioner of human services shall require nursing facilities 
380.27  and other providers of long-term care services to report 
380.28  semiannually on the use of supplemental nursing services, in the 
380.29  form and manner specified by the commissioner.  The information 
380.30  reported must include, but is not limited to: 
380.31     (1) number of hours worked by supplemental nursing services 
380.32  personnel, by job classification, for each month; 
380.33     (2) payments to supplemental nursing services agencies, on 
380.34  a per hour worked basis, by job classification, for each month; 
380.35  and 
380.36     (3) percentage of total monthly work hours provided by 
381.1   supplemental nursing services agency personnel, by job 
381.2   classification, for each shift and for weekdays and weekends. 
381.3                              ARTICLE 8 
381.4                       LONG-TERM CARE INSURANCE 
381.5      Section 1.  Minnesota Statutes 2000, section 62A.48, 
381.6   subdivision 4, is amended to read: 
381.7      Subd. 4.  [LOSS RATIO.] The anticipated loss ratio for 
381.8   long-term care policies must not be less than 65 percent for 
381.9   policies issued on a group basis or 60 percent for policies 
381.10  issued on an individual or mass-market basis.  This subdivision 
381.11  does not apply to policies issued on or after January 1, 2002, 
381.12  that comply with sections 62S.021 and 62S.081. 
381.13     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
381.14  following final enactment. 
381.15     Sec. 2.  Minnesota Statutes 2000, section 62A.48, is 
381.16  amended by adding a subdivision to read: 
381.17     Subd. 10.  [REGULATION OF PREMIUMS AND PREMIUM 
381.18  INCREASES.] Policies issued under sections 62A.46 to 62A.56 on 
381.19  or after January 1, 2002, must comply with sections 62S.021, 
381.20  62S.081, 62S.265, and 62S.266 to the same extent as policies 
381.21  issued under chapter 62S. 
381.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
381.23  following final enactment. 
381.24     Sec. 3.  Minnesota Statutes 2000, section 62A.48, is 
381.25  amended by adding a subdivision to read: 
381.26     Subd. 11.  [NONFORFEITURE BENEFITS.] Policies issued under 
381.27  sections 62A.46 to 62A.56 on or after January 1, 2002, must 
381.28  comply with section 62S.02, subdivision 2, to the same extent as 
381.29  policies issued under chapter 62S. 
381.30     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
381.31  following final enactment. 
381.32     Sec. 4.  Minnesota Statutes 2000, section 62S.01, is 
381.33  amended by adding a subdivision to read: 
381.34     Subd. 13a.  [EXCEPTIONAL INCREASE.] (a) "Exceptional 
381.35  increase" means only those premium rate increases filed by an 
381.36  insurer as exceptional for which the commissioner determines 
382.1   that the need for the premium rate increase is justified due to 
382.2   changes in laws or rules applicable to long-term care coverage 
382.3   in this state, or due to increased and unexpected utilization 
382.4   that affects the majority of insurers of similar products. 
382.5      (b) Except as provided in section 62S.265, exceptional 
382.6   increases are subject to the same requirements as other premium 
382.7   rate schedule increases.  The commissioner may request a review 
382.8   by an independent actuary or a professional actuarial body of 
382.9   the basis for a request that an increase be considered an 
382.10  exceptional increase.  The commissioner, in determining that the 
382.11  necessary basis for an exceptional increase exists, shall also 
382.12  determine any potential offsets to higher claims costs. 
382.13     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
382.14  following final enactment. 
382.15     Sec. 5.  Minnesota Statutes 2000, section 62S.01, is 
382.16  amended by adding a subdivision to read: 
382.17     Subd. 17a.  [INCIDENTAL.] "Incidental," as used in section 
382.18  62S.265, subdivision 10, means that the value of the long-term 
382.19  care benefits provided is less than ten percent of the total 
382.20  value of the benefits provided over the life of the policy.  
382.21  These values must be measured as of the date of issue. 
382.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
382.23  following final enactment. 
382.24     Sec. 6.  Minnesota Statutes 2000, section 62S.01, is 
382.25  amended by adding a subdivision to read: 
382.26     Subd. 23a.  [QUALIFIED ACTUARY.] "Qualified actuary" means 
382.27  a member in good standing of the American Academy of Actuaries. 
382.28     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
382.29  following final enactment. 
382.30     Sec. 7.  Minnesota Statutes 2000, section 62S.01, is 
382.31  amended by adding a subdivision to read: 
382.32     Subd. 25a.  [SIMILAR POLICY FORMS.] "Similar policy forms" 
382.33  means all of the long-term care insurance policies and 
382.34  certificates issued by an insurer in the same long-term care 
382.35  benefit classification as the policy form being considered.  
382.36  Certificates of groups that meet the definition in section 
383.1   62S.01, subdivision 15, clause (1), are not considered similar 
383.2   to certificates or policies otherwise issued as long-term care 
383.3   insurance, but are similar to other comparable certificates with 
383.4   the same long-term care benefit classifications.  For purposes 
383.5   of determining similar policy forms, long-term care benefit 
383.6   classifications are defined as follows:  institutional long-term 
383.7   care benefits only, noninstitutional long-term care benefits 
383.8   only, or comprehensive long-term care benefits. 
383.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
383.10  following final enactment. 
383.11     Sec. 8.  [62S.021] [LONG-TERM CARE INSURANCE; INITIAL 
383.12  FILING.] 
383.13     Subdivision 1.  [APPLICABILITY.] This section applies to 
383.14  any long-term care policy issued in this state on or after 
383.15  January 1, 2002, under this chapter or sections 62A.46 to 62A.56.
383.16     Subd. 2.  [REQUIRED SUBMISSION TO COMMISSIONER.] An insurer 
383.17  shall provide the following information to the commissioner 30 
383.18  days prior to making a long-term care insurance form available 
383.19  for sale: 
383.20     (1) a copy of the disclosure documents required in section 
383.21  62S.081; and 
383.22     (2) an actuarial certification consisting of at least the 
383.23  following: 
383.24     (i) a statement that the initial premium rate schedule is 
383.25  sufficient to cover anticipated costs under moderately adverse 
383.26  experience and that the premium rate schedule is reasonably 
383.27  expected to be sustainable over the life of the form with no 
383.28  future premium increases anticipated; 
383.29     (ii) a statement that the policy design and coverage 
383.30  provided have been reviewed and taken into consideration; 
383.31     (iii) a statement that the underwriting and claims 
383.32  adjudication processes have been reviewed and taken into 
383.33  consideration; and 
383.34     (iv) a complete description of the basis for contract 
383.35  reserves that are anticipated to be held under the form, to 
383.36  include: 
384.1      (A) sufficient detail or sample calculations provided so as 
384.2   to have a complete depiction of the reserve amounts to be held; 
384.3      (B) a statement that the assumptions used for reserves 
384.4   contain reasonable margins for adverse experience; 
384.5      (C) a statement that the net valuation premium for renewal 
384.6   years does not increase, except for attained-age rating where 
384.7   permitted; 
384.8      (D) a statement that the difference between the gross 
384.9   premium and the net valuation premium for renewal years is 
384.10  sufficient to cover expected renewal expenses, or if such a 
384.11  statement cannot be made, a complete description of the 
384.12  situations in which this does not occur.  An aggregate 
384.13  distribution of anticipated issues may be used as long as the 
384.14  underlying gross premiums maintain a reasonably consistent 
384.15  relationship.  If the gross premiums for certain age groups 
384.16  appear to be inconsistent with this requirement, the 
384.17  commissioner may request a demonstration under item (i) based on 
384.18  a standard age distribution; and 
384.19     (E) either a statement that the premium rate schedule is 
384.20  not less than the premium rate schedule for existing similar 
384.21  policy forms also available from the insurer except for 
384.22  reasonable differences attributable to benefits, or a comparison 
384.23  of the premium schedules for similar policy forms that are 
384.24  currently available from the insurer with an explanation of the 
384.25  differences. 
384.26     Subd. 3.  [ACTUARIAL DEMONSTRATION.] The commissioner may 
384.27  request an actuarial demonstration that benefits are reasonable 
384.28  in relation to premiums.  The actuarial demonstration must 
384.29  include either premium and claim experience on similar policy 
384.30  forms, adjusted for any premium or benefit differences, relevant 
384.31  and credible data from other studies, or both.  If the 
384.32  commissioner asks for additional information under this 
384.33  subdivision, the 30-day time limit in subdivision 2 does not 
384.34  include the time during which the insurer is preparing the 
384.35  requested information. 
384.36     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
385.1   following final enactment. 
385.2      Sec. 9.  [62S.081] [REQUIRED DISCLOSURE OF RATING PRACTICES 
385.3   TO CONSUMERS.] 
385.4      Subdivision 1.  [APPLICATION.] This section applies as 
385.5   follows: 
385.6      (a) Except as provided in paragraph (b), this section 
385.7   applies to any long-term care policy or certificate issued in 
385.8   this state on or after January 1, 2002. 
385.9      (b) For certificates issued on or after the effective date 
385.10  of this section under a policy of group long-term care insurance 
385.11  as defined in section 62S.01, subdivision 15, that was in force 
385.12  on the effective date of this section, this section applies on 
385.13  the policy anniversary following June 30, 2002. 
385.14     Subd. 2.  [REQUIRED DISCLOSURES.] Other than policies for 
385.15  which no applicable premium rate or rate schedule increases can 
385.16  be made, insurers shall provide all of the information listed in 
385.17  this subdivision to the applicant at the time of application or 
385.18  enrollment, unless the method of application does not allow for 
385.19  delivery at that time; in this case, an insurer shall provide 
385.20  all of the information listed in this subdivision to the 
385.21  applicant no later than at the time of delivery of the policy or 
385.22  certificate: 
385.23     (1) a statement that the policy may be subject to rate 
385.24  increases in the future; 
385.25     (2) an explanation of potential future premium rate 
385.26  revisions and the policyholder's or certificate holder's option 
385.27  in the event of a premium rate revision; 
385.28     (3) the premium rate or rate schedules applicable to the 
385.29  applicant that will be in effect until a request is made for an 
385.30  increase; 
385.31     (4) a general explanation of applying premium rate or rate 
385.32  schedule adjustments that must include: 
385.33     (i) a description of when premium rate or rate schedule 
385.34  adjustments will be effective, for example the next anniversary 
385.35  date or the next billing date; and 
385.36     (ii) the right to a revised premium rate or rate schedule 
386.1   as provided in clause (3) if the premium rate or rate schedule 
386.2   is changed; and 
386.3      (5)(i) information regarding each premium rate increase on 
386.4   this policy form or similar policy forms over the past ten years 
386.5   for this state or any other state that, at a minimum, identifies:
386.6      (A) the policy forms for which premium rates have been 
386.7   increased; 
386.8      (B) the calendar years when the form was available for 
386.9   purchase; and 
386.10     (C) the amount or percent of each increase.  The percentage 
386.11  may be expressed as a percentage of the premium rate prior to 
386.12  the increase and may also be expressed as minimum and maximum 
386.13  percentages if the rate increase is variable by rating 
386.14  characteristics; 
386.15     (ii) the insurer may, in a fair manner, provide additional 
386.16  explanatory information related to the rate increases; 
386.17     (iii) an insurer has the right to exclude from the 
386.18  disclosure premium rate increases that apply only to blocks of 
386.19  business acquired from other nonaffiliated insurers or the 
386.20  long-term care policies acquired from other nonaffiliated 
386.21  insurers when those increases occurred prior to the acquisition; 
386.22     (iv) if an acquiring insurer files for a rate increase on a 
386.23  long-term care policy form acquired from nonaffiliated insurers 
386.24  or a block of policy forms acquired from nonaffiliated insurers 
386.25  on or before the later of the effective date of this section, or 
386.26  the end of a 24-month period following the acquisition of the 
386.27  block of policies, the acquiring insurer may exclude that rate 
386.28  increase from the disclosure.  However, the nonaffiliated 
386.29  selling company must include the disclosure of that rate 
386.30  increase according to item (i); and 
386.31     (v) if the acquiring insurer in item (iv) files for a 
386.32  subsequent rate increase, even within the 24-month period, on 
386.33  the same policy form acquired from nonaffiliated insurers or 
386.34  block of policy forms acquired from nonaffiliated insurers 
386.35  referenced in item (iv), the acquiring insurer shall make all 
386.36  disclosures required by this subdivision, including disclosure 
387.1   of the earlier rate increase referenced in item (iv). 
387.2      Subd. 3.  [ACKNOWLEDGMENT.] An applicant shall sign an 
387.3   acknowledgment at the time of application, unless the method of 
387.4   application does not allow for signature at that time, that the 
387.5   insurer made the disclosure required under subdivision 2.  If, 
387.6   due to the method of application, the applicant cannot sign an 
387.7   acknowledgment at the time of application, the applicant shall 
387.8   sign no later than at the time of delivery of the policy or 
387.9   certificate. 
387.10     Subd. 4.  [FORMS.] An insurer shall use the forms in 
387.11  Appendices B and F of the Long-term Care Insurance Model 
387.12  Regulation adopted by the National Association of Insurance 
387.13  Commissioners to comply with the requirements of subdivisions 1 
387.14  and 2. 
387.15     Subd. 5.  [NOTICE OF INCREASE.] An insurer shall provide 
387.16  notice of an upcoming premium rate schedule increase, after the 
387.17  increase has been approved by the commissioner, to all 
387.18  policyholders or certificate holders, if applicable, at least 45 
387.19  days prior to the implementation of the premium rate schedule 
387.20  increase by the insurer.  The notice must include the 
387.21  information required by subdivision 2 when the rate increase is 
387.22  implemented. 
387.23     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
387.24  following final enactment. 
387.25     Sec. 10.  Minnesota Statutes 2000, section 62S.26, is 
387.26  amended to read: 
387.27     62S.26 [LOSS RATIO.] 
387.28     (a) The minimum loss ratio must be at least 60 percent, 
387.29  calculated in a manner which provides for adequate reserving of 
387.30  the long-term care insurance risk.  In evaluating the expected 
387.31  loss ratio, the commissioner shall give consideration to all 
387.32  relevant factors, including: 
387.33     (1) statistical credibility of incurred claims experience 
387.34  and earned premiums; 
387.35     (2) the period for which rates are computed to provide 
387.36  coverage; 
388.1      (3) experienced and projected trends; 
388.2      (4) concentration of experience within early policy 
388.3   duration; 
388.4      (5) expected claim fluctuation; 
388.5      (6) experience refunds, adjustments, or dividends; 
388.6      (7) renewability features; 
388.7      (8) all appropriate expense factors; 
388.8      (9) interest; 
388.9      (10) experimental nature of the coverage; 
388.10     (11) policy reserves; 
388.11     (12) mix of business by risk classification; and 
388.12     (13) product features such as long elimination periods, 
388.13  high deductibles, and high maximum limits. 
388.14     (b) This section does not apply to policies or certificates 
388.15  that are subject to sections 62S.021, 62S.081, and 62S.265, and 
388.16  that comply with those sections. 
388.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
388.18  following final enactment. 
388.19     Sec. 11.  [62S.265] [PREMIUM RATE SCHEDULE INCREASES.] 
388.20     Subdivision 1.  [APPLICABILITY.] (a) Except as provided in 
388.21  paragraph (b), this section applies to any long-term care policy 
388.22  or certificate issued in this state on or after January 1, 2002, 
388.23  under this chapter or sections 62A.46 to 62A.56. 
388.24     (b) For certificates issued on or after the effective date 
388.25  of this section under a group long-term care insurance policy as 
388.26  defined in section 62S.01, subdivision 15, issued under this 
388.27  chapter, that was in force on the effective date of this 
388.28  section, this section applies on the policy anniversary 
388.29  following June 30, 2002. 
388.30     Subd. 2.  [NOTICE.] An insurer shall file a requested 
388.31  premium rate schedule increase, including an exceptional 
388.32  increase, to the commissioner for prior approval at least 60 
388.33  days prior to the notice to the policyholders and shall include: 
388.34     (1) all information required by section 62S.081; 
388.35     (2) certification by a qualified actuary that: 
388.36     (i) if the requested premium rate schedule increase is 
389.1   implemented and the underlying assumptions, which reflect 
389.2   moderately adverse conditions, are realized, no further premium 
389.3   rate schedule increases are anticipated; and 
389.4      (ii) the premium rate filing complies with this section; 
389.5      (3) an actuarial memorandum justifying the rate schedule 
389.6   change request that includes: 
389.7      (i) lifetime projections of earned premiums and incurred 
389.8   claims based on the filed premium rate schedule increase and the 
389.9   method and assumptions used in determining the projected values, 
389.10  including reflection of any assumptions that deviate from those 
389.11  used for pricing other forms currently available for sale; 
389.12     (A) annual values for the five years preceding and the 
389.13  three years following the valuation date must be provided 
389.14  separately; 
389.15     (B) the projections must include the development of the 
389.16  lifetime loss ratio, unless the rate increase is an exceptional 
389.17  increase; 
389.18     (C) the projections must demonstrate compliance with 
389.19  subdivision 3; and 
389.20     (D) for exceptional increases, the projected experience 
389.21  must be limited to the increases in claims expenses attributable 
389.22  to the approved reasons for the exceptional increase and, if the 
389.23  commissioner determines that offsets to higher claim costs may 
389.24  exist, the insurer shall use appropriate net projected 
389.25  experience; 
389.26     (ii) disclosure of how reserves have been incorporated in 
389.27  this rate increase whenever the rate increase will trigger 
389.28  contingent benefit upon lapse; 
389.29     (iii) disclosure of the analysis performed to determine why 
389.30  a rate adjustment is necessary, which pricing assumptions were 
389.31  not realized and why, and what other actions taken by the 
389.32  company have been relied upon by the actuary; 
389.33     (iv) a statement that policy design, underwriting, and 
389.34  claims adjudication practices have been taken into 
389.35  consideration; and 
389.36     (v) if it is necessary to maintain consistent premium rates 
390.1   for new certificates and certificates receiving a rate increase, 
390.2   the insurer shall file composite rates reflecting projections of 
390.3   new certificates; 
390.4      (4) a statement that renewal premium rate schedules are not 
390.5   greater than new business premium rate schedules except for 
390.6   differences attributable to benefits, unless sufficient 
390.7   justification is provided to the commissioner; and 
390.8      (5) sufficient information for review and approval of the 
390.9   premium rate schedule increase by the commissioner. 
390.10     Subd. 3.  [REQUIREMENTS PERTAINING TO RATE INCREASES.] All 
390.11  premium rate schedule increases must be determined according to 
390.12  the following requirements: 
390.13     (1) exceptional increases must provide that 70 percent of 
390.14  the present value of projected additional premiums from the 
390.15  exceptional increase will be returned to policyholders in 
390.16  benefits; 
390.17     (2) premium rate schedule increases must be calculated so 
390.18  that the sum of the accumulated value of incurred claims, 
390.19  without the inclusion of active life reserves, and the present 
390.20  value of future projected incurred claims, without the inclusion 
390.21  of active life reserves, will not be less than the sum of the 
390.22  following: 
390.23     (i) the accumulated value of the initial earned premium 
390.24  times 58 percent; 
390.25     (ii) 85 percent of the accumulated value of prior premium 
390.26  rate schedule increases on an earned basis; 
390.27     (iii) the present value of future projected initial earned 
390.28  premiums times 58 percent; and 
390.29     (iv) 85 percent of the present value of future projected 
390.30  premiums not in item (iii) on an earned basis; 
390.31     (3) if a policy form has both exceptional and other 
390.32  increases, the values in clause (2), items (ii) and (iv), must 
390.33  also include 70 percent for exceptional rate increase amounts; 
390.34  and 
390.35     (4) all present and accumulated values used to determine 
390.36  rate increases must use the maximum valuation interest rate for 
391.1   contract reserves permitted for valuation of whole life 
391.2   insurance policies issued in this state on the same date.  The 
391.3   actuary shall disclose as part of the actuarial memorandum the 
391.4   use of any appropriate averages. 
391.5      Subd. 4.  [PROJECTIONS.] For each rate increase that is 
391.6   implemented, the insurer shall file for approval by the 
391.7   commissioner updated projections, as described in subdivision 2, 
391.8   clause (3), item (i), annually for the next three years and 
391.9   include a comparison of actual results to projected values.  The 
391.10  commissioner may extend the period to greater than three years 
391.11  if actual results are not consistent with projected values from 
391.12  prior projections.  For group insurance policies that meet the 
391.13  conditions in subdivision 11, the projections required by this 
391.14  subdivision must be provided to the policyholder in lieu of 
391.15  filing with the commissioner. 
391.16     Subd. 5.  [LIFETIME PROJECTIONS.] If any premium rate in 
391.17  the revised premium rate schedule is greater than 200 percent of 
391.18  the comparable rate in the initial premium schedule, lifetime 
391.19  projections, as described in subdivision 2, clause (3), item 
391.20  (i), must be filed for approval by the commissioner every five 
391.21  years following the end of the required period in subdivision 
391.22  4.  For group insurance policies that meet the conditions in 
391.23  subdivision 11, the projections required by this subdivision 
391.24  must be provided to the policyholder in lieu of filing with the 
391.25  commissioner. 
391.26     Subd. 6.  [EFFECT OF ACTUAL EXPERIENCE.] (a) If the 
391.27  commissioner has determined that the actual experience following 
391.28  a rate increase does not adequately match the projected 
391.29  experience and that the current projections under moderately 
391.30  adverse conditions demonstrate that incurred claims will not 
391.31  exceed proportions of premiums specified in subdivision 3, the 
391.32  commissioner may require the insurer to implement any of the 
391.33  following: 
391.34     (1) premium rate schedule adjustments; or 
391.35     (2) other measures to reduce the difference between the 
391.36  projected and actual experience. 
392.1      (b) In determining whether the actual experience adequately 
392.2   matches the projected experience, consideration must be given to 
392.3   subdivision 2, clause (3), item (v), if applicable. 
392.4      Subd. 7.  [CONTINGENT BENEFIT UPON LAPSE.] If the majority 
392.5   of the policies or certificates to which the increase is 
392.6   applicable are eligible for the contingent benefit upon lapse, 
392.7   the insurer shall file: 
392.8      (1) a plan, subject to commissioner approval, for improved 
392.9   administration or claims processing designed to eliminate the 
392.10  potential for further deterioration of the policy form requiring 
392.11  further premium rate schedule increases, or both, or a 
392.12  demonstration that appropriate administration and claims 
392.13  processing have been implemented or are in effect; otherwise, 
392.14  the commissioner may impose the condition in subdivision 8, 
392.15  paragraph (b); and 
392.16     (2) the original anticipated lifetime loss ratio, and the 
392.17  premium rate schedule increase that would have been calculated 
392.18  according to subdivision 3 had the greater of the original 
392.19  anticipated lifetime loss ratio or 58 percent been used in the 
392.20  calculations described in subdivision 3, clause (2), items (i) 
392.21  and (iii). 
392.22     Subd. 8.  [PROJECTED LAPSE RATES.] (a) For a rate increase 
392.23  filing that meets the following criteria, the commissioner shall 
392.24  review, for all policies included in the filing, the projected 
392.25  lapse rates and past lapse rates during the 12 months following 
392.26  each increase to determine if significant adverse lapsation has 
392.27  occurred or is anticipated: 
392.28     (1) the rate increase is not the first rate increase 
392.29  requested for the specific policy form or forms; 
392.30     (2) the rate increase is not an exceptional increase; and 
392.31     (3) the majority of the policies or certificates to which 
392.32  the increase is applicable are eligible for the contingent 
392.33  benefit upon lapse. 
392.34     (b) If significant adverse lapsation has occurred, is 
392.35  anticipated in the filing, or is evidenced in the actual results 
392.36  as presented in the updated projections provided by the insurer 
393.1   following the requested rate increase, the commissioner may 
393.2   determine that a rate spiral exists.  Following the 
393.3   determination that a rate spiral exists, the commissioner may 
393.4   require the insurer to offer, without underwriting, to all 
393.5   in-force insureds subject to the rate increase, the option to 
393.6   replace existing coverage with one or more reasonably comparable 
393.7   products being offered by the insurer or its affiliates.  The 
393.8   offer must: 
393.9      (1) be subject to the approval of the commissioner; 
393.10     (2) be based upon actuarially sound principles, but not be 
393.11  based upon attained age; and 
393.12     (3) provide that maximum benefits under any new policy 
393.13  accepted by an insured will be reduced by comparable benefits 
393.14  already paid under the existing policy. 
393.15     (c) The insurer shall maintain the experience of all the 
393.16  replacement insureds separate from the experience of insureds 
393.17  originally issued the policy forms.  In the event of a request 
393.18  for a rate increase on the policy form, the rate increase must 
393.19  be limited to the lesser of the maximum rate increase determined 
393.20  based on the combined experience and the maximum rate increase 
393.21  determined based only upon the experience of the insureds 
393.22  originally issued the form plus ten percent. 
393.23     Subd. 9.  [PERSISTENT PRACTICE OF INADEQUATE INITIAL 
393.24  RATES.] If the commissioner determines that the insurer has 
393.25  exhibited a persistent practice of filing inadequate initial 
393.26  premium rates for long-term care insurance, the commissioner 
393.27  may, in addition to the provisions of subdivision 8, take either 
393.28  of the following actions: 
393.29     (1) prohibit the insurer from filing and marketing 
393.30  comparable coverage for a period of up to five years; or 
393.31     (2) prohibit the insurer from offering all other similar 
393.32  coverages and limit the insurer's marketing of new applications 
393.33  for the products that are subject to recent premium rate 
393.34  schedule increases. 
393.35     Subd. 10.  [INCIDENTAL LONG-TERM CARE 
393.36  BENEFITS.] Subdivisions 1 to 9 do not apply to policies for 
394.1   which the long-term care benefits provided by the policy are 
394.2   incidental, as defined in section 62S.01, subdivision 17a, if 
394.3   the policy complies with all of the following provisions: 
394.4      (1) the interest credited internally to determine cash 
394.5   value accumulations, including long-term care, if any, are 
394.6   guaranteed not to be less than the minimum guaranteed interest 
394.7   rate for cash value accumulations without long-term care set 
394.8   forth in the policy; 
394.9      (2) the portion of the policy that provides insurance 
394.10  benefits other than long-term care coverage meets the 
394.11  nonforfeiture requirements as applicable in any of the following:
394.12     (i) for life insurance, section 61A.25; 
394.13     (ii) for individual deferred annuities, section 61A.245; 
394.14  and 
394.15     (iii) for variable annuities, section 61A.21; 
394.16     (3) the policy meets the disclosure requirements of 
394.17  sections 62S.10 and 62S.11 if the policy is governed by chapter 
394.18  62S and of section 62A.50 if the policy is governed by sections 
394.19  62A.46 to 62A.56; 
394.20     (4) the portion of the policy that provides insurance 
394.21  benefits other than long-term care coverage meets the 
394.22  requirements as applicable in the following: 
394.23     (i) policy illustrations to the extent required by state 
394.24  law applicable to life insurance; 
394.25     (ii) disclosure requirements in state law applicable to 
394.26  annuities; and 
394.27     (iii) disclosure requirements applicable to variable 
394.28  annuities; and 
394.29     (5) an actuarial memorandum is filed with the commissioner 
394.30  that includes: 
394.31     (i) a description of the basis on which the long-term care 
394.32  rates were determined; 
394.33     (ii) a description of the basis for the reserves; 
394.34     (iii) a summary of the type of policy, benefits, 
394.35  renewability, general marketing method, and limits on ages of 
394.36  issuance; 
395.1      (iv) a description and a table of each actuarial assumption 
395.2   used.  For expenses, an insurer must include percent of premium 
395.3   dollars per policy and dollars per unit of benefits, if any; 
395.4      (v) a description and a table of the anticipated policy 
395.5   reserves and additional reserves to be held in each future year 
395.6   for active lives; 
395.7      (vi) the estimated average annual premium per policy and 
395.8   the average issue age; 
395.9      (vii) a statement as to whether underwriting is performed 
395.10  at the time of application.  The statement must indicate whether 
395.11  underwriting is used and, if used, the statement must include a 
395.12  description of the type or types of underwriting used, such as 
395.13  medical underwriting or functional assessment underwriting.  
395.14  Concerning a group policy, the statement must indicate whether 
395.15  the enrollee or any dependent will be underwritten and when 
395.16  underwriting occurs; and 
395.17     (viii) a description of the effect of the long-term care 
395.18  policy provision on the required premiums, nonforfeiture values, 
395.19  and reserves on the underlying insurance policy, both for active 
395.20  lives and those in long-term care claim status. 
395.21     Subd. 11.  [LARGE GROUP POLICIES.] Subdivisions 6 and 9 do 
395.22  not apply to group long-term care insurance policies as defined 
395.23  in section 62S.01, subdivision 15, where: 
395.24     (1) the policies insure 250 or more persons, and the 
395.25  policyholder has 5,000 or more eligible employees of a single 
395.26  employer; or 
395.27     (2) the policyholder, and not the certificate holders, pays 
395.28  a material portion of the premium, which is not less than 20 
395.29  percent of the total premium for the group in the calendar year 
395.30  prior to the year in which a rate increase is filed. 
395.31     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
395.32  following final enactment. 
395.33     Sec. 12.  [62S.266] [NONFORFEITURE BENEFIT REQUIREMENT.] 
395.34     Subdivision 1.  [APPLICABILITY.] This section does not 
395.35  apply to life insurance policies or riders containing 
395.36  accelerated long-term care benefits. 
396.1      Subd. 2.  [REQUIREMENT.] An insurer must offer each 
396.2   prospective policyholder a nonforfeiture benefit in compliance 
396.3   with the following requirements: 
396.4      (1) a policy or certificate offered with nonforfeiture 
396.5   benefits must have coverage elements, eligibility, benefit 
396.6   triggers, and benefit length that are the same as coverage to be 
396.7   issued without nonforfeiture benefits.  The nonforfeiture 
396.8   benefit included in the offer must be the benefit described in 
396.9   subdivision 5; and 
396.10     (2) the offer must be in writing if the nonforfeiture 
396.11  benefit is not otherwise described in the outline of coverage or 
396.12  other materials given to the prospective policyholder. 
396.13     Subd. 3.  [EFFECT OF REJECTION OF OFFER.] If the offer 
396.14  required to be made under subdivision 2 is rejected, the insurer 
396.15  shall provide the contingent benefit upon lapse described in 
396.16  this section. 
396.17     Subd. 4.  [CONTINGENT BENEFIT UPON LAPSE.] (a) After 
396.18  rejection of the offer required under subdivision 2, for 
396.19  individual and group policies without nonforfeiture benefits 
396.20  issued after the effective date of this section, the insurer 
396.21  shall provide a contingent benefit upon lapse. 
396.22     (b) If a group policyholder elects to make the 
396.23  nonforfeiture benefit an option to the certificate holder, a 
396.24  certificate shall provide either the nonforfeiture benefit or 
396.25  the contingent benefit upon lapse. 
396.26     (c) The contingent benefit on lapse must be triggered every 
396.27  time an insurer increases the premium rates to a level which 
396.28  results in a cumulative increase of the annual premium equal to 
396.29  or exceeding the percentage of the insured's initial annual 
396.30  premium based on the insured's issue age provided in this 
396.31  paragraph, and the policy or certificate lapses within 120 days 
396.32  of the due date of the premium increase.  Unless otherwise 
396.33  required, policyholders shall be notified at least 30 days prior 
396.34  to the due date of the premium reflecting the rate increase. 
396.35           Triggers for a Substantial Premium Increase 
396.36                      Percent Increase
397.1        Issue Age      Over Initial Premium
397.2        29 and Under            200
397.3           30-34                190
397.4           35-39                170
397.5           40-44                150
397.6           45-49                130
397.7           50-54                110
397.8           55-59                 90
397.9              60                 70
397.10             61                 66
397.11             62                 62
397.12             63                 58
397.13             64                 54
397.14             65                 50
397.15             66                 48
397.16             67                 46
397.17             68                 44
397.18             69                 42
397.19             70                 40
397.20             71                 38
397.21             72                 36
397.22             73                 34
397.23             74                 32
397.24             75                 30
397.25             76                 28
397.26             77                 26
397.27             78                 24
397.28             79                 22
397.29             80                 20
397.30             81                 19
397.31             82                 18
397.32             83                 17
397.33             84                 16
397.34             85                 15
397.35             86                 14
397.36             87                 13
398.1              88                 12
398.2              89                 11
398.3          90 and over            10
398.4      (d) On or before the effective date of a substantial 
398.5   premium increase as defined in paragraph (c), the insurer shall: 
398.6      (1) offer to reduce policy benefits provided by the current 
398.7   coverage without the requirement of additional underwriting so 
398.8   that required premium payments are not increased; 
398.9      (2) offer to convert the coverage to a paid-up status with 
398.10  a shortened benefit period according to the terms of subdivision 
398.11  5.  This option may be elected at any time during the 120-day 
398.12  period referenced in paragraph (c); and 
398.13     (3) notify the policyholder or certificate holder that a 
398.14  default or lapse at any time during the 120-day period 
398.15  referenced in paragraph (c) is deemed to be the election of the 
398.16  offer to convert in clause (2). 
398.17     Subd. 5.  [NONFORFEITURE BENEFITS; REQUIREMENTS.] (a) 
398.18  Benefits continued as nonforfeiture benefits, including 
398.19  contingent benefits upon lapse, must be as described in this 
398.20  subdivision. 
398.21     (b) For purposes of this subdivision, "attained age rating" 
398.22  is defined as a schedule of premiums starting from the issue 
398.23  date which increases with age at least one percent per year 
398.24  prior to age 50, and at least three percent per year beyond age 
398.25  50. 
398.26     (c) For purposes of this subdivision, the nonforfeiture 
398.27  benefit must be of a shortened benefit period providing paid-up, 
398.28  long-term care insurance coverage after lapse.  The same 
398.29  benefits, amounts, and frequency in effect at the time of lapse, 
398.30  but not increased thereafter, will be payable for a qualifying 
398.31  claim, but the lifetime maximum dollars or days of benefits must 
398.32  be determined as specified in paragraph (d). 
398.33     (d) The standard nonforfeiture credit is equal to 100 
398.34  percent of the sum of all premiums paid, including the premiums 
398.35  paid prior to any changes in benefits.  The insurer may offer 
398.36  additional shortened benefit period options, so long as the 
399.1   benefits for each duration equal or exceed the standard 
399.2   nonforfeiture credit for that duration.  However, the minimum 
399.3   nonforfeiture credit must not be less than 30 times the daily 
399.4   nursing home benefit at the time of lapse.  In either event, the 
399.5   calculation of the nonforfeiture credit is subject to the 
399.6   limitation of this subdivision. 
399.7      (e) The nonforfeiture benefit must begin not later than the 
399.8   end of the third year following the policy or certificate issue 
399.9   date.  The contingent benefit upon lapse must be effective 
399.10  during the first three years as well as thereafter. 
399.11     (f) Notwithstanding paragraph (e), for a policy or 
399.12  certificate with attained age rating, the nonforfeiture benefit 
399.13  must begin on the earlier of: 
399.14     (1) the end of the tenth year following the policy or 
399.15  certificate issue date; or 
399.16     (2) the end of the second year following the date the 
399.17  policy or certificate is no longer subject to attained age 
399.18  rating. 
399.19     (g) Nonforfeiture credits may be used for all care and 
399.20  services qualifying for benefits under the terms of the policy 
399.21  or certificate, up to the limits specified in the policy or 
399.22  certificate. 
399.23     Subd. 6.  [BENEFIT LIMIT.] All benefits paid by the insurer 
399.24  while the policy or certificate is in premium-paying status and 
399.25  in the paid-up status will not exceed the maximum benefits which 
399.26  would be payable if the policy or certificate had remained in 
399.27  premium-paying status. 
399.28     Subd. 7.  [MINIMUM BENEFITS; INDIVIDUAL AND GROUP 
399.29  POLICIES.] There must be no difference in the minimum 
399.30  nonforfeiture benefits as required under this section for group 
399.31  and individual policies. 
399.32     Subd. 8.  [APPLICATION; EFFECTIVE DATES.] This section 
399.33  becomes effective January 1, 2002, and applies as follows: 
399.34     (a) Except as provided in paragraph (b), this section 
399.35  applies to any long-term care policy issued in this state on or 
399.36  after the effective date of this section. 
400.1      (b) For certificates issued on or after the effective date 
400.2   of this section, under a group long-term care insurance policy 
400.3   that was in force on the effective date of this section, the 
400.4   provisions of this section do not apply. 
400.5      Subd. 9.  [EFFECT ON LOSS RATIO.] Premiums charged for a 
400.6   policy or certificate containing nonforfeiture benefits or a 
400.7   contingent benefit on lapse are subject to the loss ratio 
400.8   requirements of section 62A.48, subdivision 4, or 62S.26, 
400.9   treating the policy as a whole, except for policies or 
400.10  certificates that are subject to sections 62S.021, 62S.081, and 
400.11  62S.265 and that comply with those sections. 
400.12     Subd. 10.  [PURCHASED BLOCKS OF BUSINESS.] To determine 
400.13  whether contingent nonforfeiture upon lapse provisions are 
400.14  triggered under subdivision 4, paragraph (c), a replacing 
400.15  insurer that purchased or otherwise assumed a block or blocks of 
400.16  long-term care insurance policies from another insurer shall 
400.17  calculate the percentage increase based on the initial annual 
400.18  premium paid by the insured when the policy was first purchased 
400.19  from the original insurer. 
400.20     Subd. 11.  [LEVEL PREMIUM CONTRACTS.] A nonforfeiture 
400.21  benefit for qualified long-term care insurance contracts that 
400.22  are level premium contracts must be offered that meets the 
400.23  following requirements: 
400.24     (1) the nonforfeiture provision must be appropriately 
400.25  captioned; 
400.26     (2) the nonforfeiture provision must provide a benefit 
400.27  available in the event of a default in the payment of any 
400.28  premiums and must state that the amount of the benefit may be 
400.29  adjusted subsequent to being initially granted only as necessary 
400.30  to reflect changes in claims, persistency, and interest as 
400.31  reflected in changes in rates for premium paying contracts 
400.32  approved by the commissioner for the same contract form; and 
400.33     (3) the nonforfeiture provision must provide at least one 
400.34  of the following: 
400.35     (i) reduced paid-up insurance; 
400.36     (ii) extended term insurance; 
401.1      (iii) shortened benefit period; or 
401.2      (iv) other similar offerings approved by the commissioner. 
401.3      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
401.4   following final enactment. 
401.5      Sec. 13.  Minnesota Statutes 2000, section 256.975, is 
401.6   amended by adding a subdivision to read: 
401.7      Subd. 8.  [PROMOTION OF LONG-TERM CARE INSURANCE.] The 
401.8   Minnesota board on aging, either directly or through contract, 
401.9   shall promote the provision of employer-sponsored, long-term 
401.10  care insurance.  The board shall encourage private and public 
401.11  sector employers to make long-term care insurance available to 
401.12  employees, provide interested employers with information on the 
401.13  long-term care insurance product offered to state employees, and 
401.14  provide technical assistance to employers in designing long-term 
401.15  care insurance products and contacting companies offering 
401.16  long-term care insurance products. 
401.17     Sec. 14.  [256B.0571] [LONG-TERM CARE PARTNERSHIP.] 
401.18     Subdivision 1.  [DEFINITIONS.] For purposes of this 
401.19  section, the following terms have the meanings given them. 
401.20     (a) "Home care service" means care described in section 
401.21  144A.43. 
401.22     (b) "Long-term care insurance" means a policy described in 
401.23  section 62S.01. 
401.24     (c) "Medical assistance" means the program of medical 
401.25  assistance established under section 256B.01. 
401.26     (d) "Nursing home" means nursing home as described in 
401.27  section 144A.01. 
401.28     (e) "Partnership policy" means a long-term care insurance 
401.29  policy that meets the requirements under chapter 62S. 
401.30     (f) "Partnership program" means the Minnesota partnership 
401.31  for long-term care program established under this section. 
401.32     Subd. 2.  [PARTNERSHIP PROGRAM.] (a) Subject to federal 
401.33  waiver approval, the commissioner of human services, along with 
401.34  the commissioner of commerce, shall establish the Minnesota 
401.35  partnership for long-term care program to provide for the 
401.36  financing of long-term care through a combination of private 
402.1   insurance and medical assistance. 
402.2      (b) An individual who meets the requirements in paragraph 
402.3   (c) is eligible to participate in the partnership program. 
402.4      (c) The individual must: 
402.5      (1) be a Minnesota resident; 
402.6      (2) purchase a partnership policy that is delivered, issued 
402.7   for delivery, or renewed on or after the effective date of this 
402.8   section, and maintains the partnership policy in effect 
402.9   throughout the period of participation in the partnership 
402.10  program; and 
402.11     (3) exhaust the minimum benefits under the partnership 
402.12  policy as described in this section.  Benefits received under a 
402.13  long-term care insurance policy before the effective date of 
402.14  this section do not count toward the exhaustion of benefits 
402.15  required in this subdivision. 
402.16     Subd. 3.  [MEDICAL ASSISTANCE ELIGIBILITY.] (a) Upon 
402.17  application of an individual who meets the requirements 
402.18  described in subdivision 2, the commissioner of human services 
402.19  shall determine the individual's eligibility for medical 
402.20  assistance according to paragraphs (b) and (c). 
402.21     (b) After disregarding financial assets exempted under 
402.22  medical assistance eligibility requirements, the department 
402.23  shall disregard an additional amount of financial assets equal 
402.24  to the dollar amount of coverage under the partnership policy.  
402.25     (c) The department shall consider the individual's income 
402.26  according to medical assistance eligibility requirements. 
402.27     Subd. 4.  [FEDERAL APPROVAL.] (a) The commissioner of human 
402.28  services shall seek appropriate amendments to the medical 
402.29  assistance state plan and shall apply for any necessary waiver 
402.30  of medical assistance requirements by the federal Health Care 
402.31  Financing Administration to implement the partnership program.  
402.32  The state shall not implement the partnership program unless the 
402.33  provisions in paragraphs (b) and (c) apply. 
402.34     (b) The commissioner shall seek any necessary federal 
402.35  waiver of medical assistance requirements. 
402.36     (c) Individuals who receive medical assistance under this 
403.1   section are exempt from estate recovery requirements under 
403.2   section 1917, title XIX of the federal Social Security Act, 
403.3   United States Code, title 42, section 1396p. 
403.4      Subd. 5.  [APPROVED POLICIES.] (a) A partnership policy 
403.5   must meet all of the requirements in paragraphs (b) to (h). 
403.6      (b) Minimum coverage shall be for a period of not less than 
403.7   three years and for a dollar amount equal to 36 months of 
403.8   nursing home care at the minimum daily benefit rate determined 
403.9   and adjusted under paragraph (c).  The policy shall provide for 
403.10  home health care benefits to be substituted for nursing home 
403.11  care benefits on the basis of two home health care days for one 
403.12  nursing home care day. 
403.13     (c) Minimum daily benefits shall be $130 for nursing home 
403.14  care or $65 for home care.  These minimum daily benefit amounts 
403.15  shall be adjusted by the department on October 1 of each year, 
403.16  based on the health care index used under medical assistance for 
403.17  nursing home rate setting.  Adjusted minimum daily benefit 
403.18  amounts shall be rounded to the nearest whole dollar. 
403.19     (d) The insured shall be entitled to designate a third 
403.20  party to receive notice if the policy is about to lapse for 
403.21  nonpayment of premium, and an additional 30-day grace period for 
403.22  payment of premium shall be granted following notification to 
403.23  that person. 
403.24     (e) The policy must cover all of the following services: 
403.25     (1) nursing home stay; 
403.26     (2) home care service; 
403.27     (3) care management; and 
403.28     (4) up to 14 days of nursing care in a hospital while the 
403.29  individual is waiting for long-term care placement.  
403.30     (f) Payment for service under paragraph (e), clause (4), 
403.31  must not exceed the daily benefit amount for nursing home care. 
403.32     (g) A partnership policy must offer both options in 
403.33  paragraph (h) for an adjusted premium. 
403.34     (h) The options are: 
403.35     (1) an elimination period of not more than 100 days; and 
403.36     (2) nonforfeiture benefits for applicants between the ages 
404.1   of 18 and 75. 
404.2                              ARTICLE 9
404.3                  MENTAL HEALTH AND CIVIL COMMITMENT
404.4      Section 1.  [145.56] [SUICIDE PREVENTION.] 
404.5      Subdivision 1.  [PUBLIC HEALTH GOAL; SUICIDE PREVENTION 
404.6   PLAN.] The commissioner of health shall make suicide prevention 
404.7   an important public health goal of the state and shall conduct 
404.8   suicide prevention activities to accomplish that goal using an 
404.9   evidence-based, public health approach focused on prevention.  
404.10  The commissioner shall refine, coordinate, and implement the 
404.11  state's suicide prevention plan, in collaboration with assigned 
404.12  staff from the department of human services; the department of 
404.13  public safety; the department of children, families, and 
404.14  learning; and appropriate agencies, organizations, and 
404.15  institutions in the community. 
404.16     Subd. 2.  [COMMUNITY-BASED PROGRAMS.] (a) The commissioner 
404.17  shall establish a grant program consistent with the policy goals 
404.18  of this section to fund: 
404.19     (1) community-based programs to provide education, 
404.20  outreach, and advocacy services to populations who may be at 
404.21  risk for suicide; 
404.22     (2) community-based programs that educate natural community 
404.23  helpers and gatekeepers, such as family members, spiritual 
404.24  leaders, coaches, and business owners, employers, and coworkers, 
404.25  on how to prevent suicide by encouraging help-seeking behaviors; 
404.26  and 
404.27     (3) community-based programs to provide evidence-based 
404.28  suicide prevention and intervention education to school staff, 
404.29  parents, and students in kindergarten through grade 12. 
404.30     (b) Education to populations at risk for suicide and to 
404.31  community helpers and gatekeepers must include information on 
404.32  the symptoms of depression and other psychiatric illnesses, the 
404.33  warning signs of suicide, skills for preventing suicides, and 
404.34  making or seeking effective referrals to intervention and 
404.35  community resources. 
404.36     Subd. 3.  [WORKPLACE AND PROFESSIONAL EDUCATION.] (a) The 
405.1   commissioner shall promote the use of employee assistance and 
405.2   workplace programs to support employees with depression and 
405.3   other psychiatric illnesses and substance abuse disorders, and 
405.4   refer them to services.  In promoting these programs, the 
405.5   commissioner shall collaborate with employer and professional 
405.6   associations, unions, and safety councils. 
405.7      (b) The commissioner shall provide training and technical 
405.8   assistance to local public health and other community-based 
405.9   professionals to provide for integrated implementation of best 
405.10  practices for preventing suicides. 
405.11     Subd. 4. [COLLECTING AND REPORTING SUICIDE DATA.] The 
405.12  commissioner shall coordinate with federal, regional, local, and 
405.13  other state agencies to collect, analyze, and annually issue a 
405.14  public report on Minnesota-specific data on suicide and suicidal 
405.15  behaviors. 
405.16     Subd. 5.  [PERIODIC EVALUATIONS; BIENNIAL REPORTS.] The 
405.17  commissioner shall conduct periodic evaluations of the impact of 
405.18  and outcomes from implementation of the state's suicide 
405.19  prevention plan and each of the activities specified in this 
405.20  section.  By July 1, 2002, and July 1 of each even-numbered year 
405.21  thereafter, the commissioner shall report the results of these 
405.22  evaluations to the chairs of the policy and finance committees 
405.23  in the house and senate with jurisdiction over health and human 
405.24  services issues. 
405.25     Sec. 2.  Minnesota Statutes 2000, section 245.462, 
405.26  subdivision 8, is amended to read: 
405.27     Subd. 8.  [DAY TREATMENT SERVICES.] "Day treatment," "day 
405.28  treatment services," or "day treatment program" means a 
405.29  structured program of treatment and care provided to an adult in 
405.30  or by:  (1) a hospital accredited by the joint commission on 
405.31  accreditation of health organizations and licensed under 
405.32  sections 144.50 to 144.55; (2) a community mental health center 
405.33  under section 245.62; or (3) an entity that is under contract 
405.34  with the county board to operate a program that meets the 
405.35  requirements of section 245.4712, subdivision 2, and Minnesota 
405.36  Rules, parts 9505.0170 to 9505.0475.  Day treatment consists of 
406.1   group psychotherapy and other intensive therapeutic services 
406.2   that are provided at least one day a week by a multidisciplinary 
406.3   staff under the clinical supervision of a mental health 
406.4   professional.  Day treatment may include education and 
406.5   consultation provided to families and other individuals as part 
406.6   of the treatment process.  The services are aimed at stabilizing 
406.7   the adult's mental health status, providing mental health 
406.8   services, and developing and improving the adult's independent 
406.9   living and socialization skills.  The goal of day treatment is 
406.10  to reduce or relieve mental illness and to enable the adult to 
406.11  live in the community.  Day treatment services are not a part of 
406.12  inpatient or residential treatment services.  Day treatment 
406.13  services are distinguished from day care by their structured 
406.14  therapeutic program of psychotherapy services.  The commissioner 
406.15  may limit medical assistance reimbursement for day treatment to 
406.16  15 hours per week per person instead of the three hours per day 
406.17  per person specified in Minnesota Rules, part 9505.0323, subpart 
406.18  15. 
406.19     Sec. 3.  Minnesota Statutes 2000, section 245.462, 
406.20  subdivision 18, is amended to read: 
406.21     Subd. 18.  [MENTAL HEALTH PROFESSIONAL.] "Mental health 
406.22  professional" means a person providing clinical services in the 
406.23  treatment of mental illness who is qualified in at least one of 
406.24  the following ways:  
406.25     (1) in psychiatric nursing:  a registered nurse who is 
406.26  licensed under sections 148.171 to 148.285, and who is certified 
406.27  as a clinical specialist in adult psychiatric and mental health 
406.28  nursing by a national nurse certification organization or who 
406.29  has a master's degree in nursing or one of the behavioral 
406.30  sciences or related fields from an accredited college or 
406.31  university or its equivalent, with at least 4,000 hours of 
406.32  post-master's supervised experience in the delivery of clinical 
406.33  services in the treatment of mental illness; 
406.34     (2) in clinical social work:  a person licensed as an 
406.35  independent clinical social worker under section 148B.21, 
406.36  subdivision 6, or a person with a master's degree in social work 
407.1   from an accredited college or university, with at least 4,000 
407.2   hours of post-master's supervised experience in the delivery of 
407.3   clinical services in the treatment of mental illness; 
407.4      (3) in psychology:  a psychologist an individual licensed 
407.5   by the board of psychology under sections 148.88 to 148.98 who 
407.6   has stated to the board of psychology competencies in the 
407.7   diagnosis and treatment of mental illness; 
407.8      (4) in psychiatry:  a physician licensed under chapter 147 
407.9   and certified by the American board of psychiatry and neurology 
407.10  or eligible for board certification in psychiatry; 
407.11     (5) in marriage and family therapy:  the mental health 
407.12  professional must be a marriage and family therapist licensed 
407.13  under sections 148B.29 to 148B.39 with at least two years of 
407.14  post-master's supervised experience in the delivery of clinical 
407.15  services in the treatment of mental illness; or 
407.16     (6) in allied fields:  a person with a master's degree from 
407.17  an accredited college or university in one of the behavioral 
407.18  sciences or related fields, with at least 4,000 hours of 
407.19  post-master's supervised experience in the delivery of clinical 
407.20  services in the treatment of mental illness.  
407.21     Sec. 4.  Minnesota Statutes 2000, section 245.462, is 
407.22  amended by adding a subdivision to read: 
407.23     Subd. 25a.  [SIGNIFICANT IMPAIRMENT IN FUNCTIONING.] 
407.24  "Significant impairment in functioning" means a condition, 
407.25  including significant suicidal ideation or thoughts of harming 
407.26  self or others, which harmfully affects, recurrently or 
407.27  consistently, a person's activities of daily living in 
407.28  employment, housing, family, and social relationships, or 
407.29  education. 
407.30     Sec. 5.  Minnesota Statutes 2000, section 245.4871, 
407.31  subdivision 10, is amended to read: 
407.32     Subd. 10.  [DAY TREATMENT SERVICES.] "Day treatment," "day 
407.33  treatment services," or "day treatment program" means a 
407.34  structured program of treatment and care provided to a child in: 
407.35     (1) an outpatient hospital accredited by the joint 
407.36  commission on accreditation of health organizations and licensed 
408.1   under sections 144.50 to 144.55; 
408.2      (2) a community mental health center under section 245.62; 
408.3      (3) an entity that is under contract with the county board 
408.4   to operate a program that meets the requirements of section 
408.5   245.4884, subdivision 2, and Minnesota Rules, parts 9505.0170 to 
408.6   9505.0475; or 
408.7      (4) an entity that operates a program that meets the 
408.8   requirements of section 245.4884, subdivision 2, and Minnesota 
408.9   Rules, parts 9505.0170 to 9505.0475, that is under contract with 
408.10  an entity that is under contract with a county board. 
408.11     Day treatment consists of group psychotherapy and other 
408.12  intensive therapeutic services that are provided for a minimum 
408.13  three-hour time block by a multidisciplinary staff under the 
408.14  clinical supervision of a mental health professional.  Day 
408.15  treatment may include education and consultation provided to 
408.16  families and other individuals as an extension of the treatment 
408.17  process.  The services are aimed at stabilizing the child's 
408.18  mental health status, and developing and improving the child's 
408.19  daily independent living and socialization skills.  Day 
408.20  treatment services are distinguished from day care by their 
408.21  structured therapeutic program of psychotherapy services.  Day 
408.22  treatment services are not a part of inpatient hospital or 
408.23  residential treatment services.  Day treatment services for a 
408.24  child are an integrated set of education, therapy, and family 
408.25  interventions. 
408.26     A day treatment service must be available to a child at 
408.27  least five days a week throughout the year and must be 
408.28  coordinated with, integrated with, or part of an education 
408.29  program offered by the child's school. 
408.30     Sec. 6.  Minnesota Statutes 2000, section 245.4871, 
408.31  subdivision 27, is amended to read: 
408.32     Subd. 27.  [MENTAL HEALTH PROFESSIONAL.] "Mental health 
408.33  professional" means a person providing clinical services in the 
408.34  diagnosis and treatment of children's emotional disorders.  A 
408.35  mental health professional must have training and experience in 
408.36  working with children consistent with the age group to which the 
409.1   mental health professional is assigned.  A mental health 
409.2   professional must be qualified in at least one of the following 
409.3   ways:  
409.4      (1) in psychiatric nursing, the mental health professional 
409.5   must be a registered nurse who is licensed under sections 
409.6   148.171 to 148.285 and who is certified as a clinical specialist 
409.7   in child and adolescent psychiatric or mental health nursing by 
409.8   a national nurse certification organization or who has a 
409.9   master's degree in nursing or one of the behavioral sciences or 
409.10  related fields from an accredited college or university or its 
409.11  equivalent, with at least 4,000 hours of post-master's 
409.12  supervised experience in the delivery of clinical services in 
409.13  the treatment of mental illness; 
409.14     (2) in clinical social work, the mental health professional 
409.15  must be a person licensed as an independent clinical social 
409.16  worker under section 148B.21, subdivision 6, or a person with a 
409.17  master's degree in social work from an accredited college or 
409.18  university, with at least 4,000 hours of post-master's 
409.19  supervised experience in the delivery of clinical services in 
409.20  the treatment of mental disorders; 
409.21     (3) in psychology, the mental health professional must be a 
409.22  psychologist an individual licensed by the board of psychology 
409.23  under sections 148.88 to 148.98 who has stated to the board of 
409.24  psychology competencies in the diagnosis and treatment of mental 
409.25  disorders; 
409.26     (4) in psychiatry, the mental health professional must be a 
409.27  physician licensed under chapter 147 and certified by the 
409.28  American board of psychiatry and neurology or eligible for board 
409.29  certification in psychiatry; 
409.30     (5) in marriage and family therapy, the mental health 
409.31  professional must be a marriage and family therapist licensed 
409.32  under sections 148B.29 to 148B.39 with at least two years of 
409.33  post-master's supervised experience in the delivery of clinical 
409.34  services in the treatment of mental disorders or emotional 
409.35  disturbances; or 
409.36     (6) in allied fields, the mental health professional must 
410.1   be a person with a master's degree from an accredited college or 
410.2   university in one of the behavioral sciences or related fields, 
410.3   with at least 4,000 hours of post-master's supervised experience 
410.4   in the delivery of clinical services in the treatment of 
410.5   emotional disturbances. 
410.6      Sec. 7.  Minnesota Statutes 2000, section 245.4876, 
410.7   subdivision 1, is amended to read: 
410.8      Subdivision 1.  [CRITERIA.] Children's mental health 
410.9   services required by sections 245.487 to 245.4888 must be:  
410.10     (1) based, when feasible, on research findings; 
410.11     (2) based on individual clinical, cultural, and ethnic 
410.12  needs, and other special needs of the children being served; 
410.13     (3) delivered in a manner that improves family functioning 
410.14  when clinically appropriate; 
410.15     (4) provided in the most appropriate, least restrictive 
410.16  setting that meets the requirements in subdivision 1a, and that 
410.17  is available to the county board to meet the child's treatment 
410.18  needs; 
410.19     (5) accessible to all age groups of children; 
410.20     (6) appropriate to the developmental age of the child being 
410.21  served; 
410.22     (7) delivered in a manner that provides accountability to 
410.23  the child for the quality of service delivered and continuity of 
410.24  services to the child during the years the child needs services 
410.25  from the local system of care; 
410.26     (8) provided by qualified individuals as required in 
410.27  sections 245.487 to 245.4888; 
410.28     (9) coordinated with children's mental health services 
410.29  offered by other providers; 
410.30     (10) provided under conditions that protect the rights and 
410.31  dignity of the individuals being served; and 
410.32     (11) provided in a manner and setting most likely to 
410.33  facilitate progress toward treatment goals. 
410.34     Sec. 8.  Minnesota Statutes 2000, section 245.4876, is 
410.35  amended by adding a subdivision to read: 
410.36     Subd. 1a.  [APPROPRIATE SETTING TO RECEIVE SERVICES.] A 
411.1   child must be provided with mental health services in the least 
411.2   restrictive setting that is appropriate to the needs and current 
411.3   condition of the individual child.  For a child to receive 
411.4   mental health services in a residential treatment or acute care 
411.5   hospital inpatient setting, the family may not be required to 
411.6   demonstrate that services were first provided in a less 
411.7   restrictive setting and that the child failed to make progress 
411.8   toward or meet treatment goals in the less restrictive setting. 
411.9      Sec. 9.  Minnesota Statutes 2000, section 245.4885, 
411.10  subdivision 1, is amended to read: 
411.11     Subdivision 1.  [SCREENING REQUIRED.] The county board 
411.12  shall, prior to admission, except in the case of emergency 
411.13  admission, screen all children referred for treatment of severe 
411.14  emotional disturbance to a residential treatment facility or 
411.15  informally admitted to a regional treatment center if public 
411.16  funds are used to pay for the services.  The county board shall 
411.17  also screen all children admitted to an acute care hospital for 
411.18  treatment of severe emotional disturbance if public funds other 
411.19  than reimbursement under chapters 256B and 256D are used to pay 
411.20  for the services.  If a child is admitted to a residential 
411.21  treatment facility or acute care hospital for emergency 
411.22  treatment or held for emergency care by a regional treatment 
411.23  center under section 253B.05, subdivision 1, screening must 
411.24  occur within three working days of admission.  Screening shall 
411.25  determine whether the proposed treatment:  
411.26     (1) is necessary; 
411.27     (2) is appropriate to the child's individual treatment 
411.28  needs; 
411.29     (3) cannot be effectively provided in the child's home; and 
411.30     (4) provides a length of stay as short as possible 
411.31  consistent with the individual child's need. 
411.32     When a screening is conducted, the county board may not 
411.33  determine that referral or admission to a residential treatment 
411.34  facility or acute care hospital is not appropriate solely 
411.35  because services were not first provided to the child in a less 
411.36  restrictive setting and the child failed to make progress toward 
412.1   or meet treatment goals in the less restrictive setting.  
412.2   Screening shall include both a diagnostic assessment and a 
412.3   functional assessment which evaluates family, school, and 
412.4   community living situations.  If a diagnostic assessment or 
412.5   functional assessment has been completed by a mental health 
412.6   professional within 180 days, a new diagnostic or functional 
412.7   assessment need not be completed unless in the opinion of the 
412.8   current treating mental health professional the child's mental 
412.9   health status has changed markedly since the assessment was 
412.10  completed.  The child's parent shall be notified if an 
412.11  assessment will not be completed and of the reasons.  A copy of 
412.12  the notice shall be placed in the child's file.  Recommendations 
412.13  developed as part of the screening process shall include 
412.14  specific community services needed by the child and, if 
412.15  appropriate, the child's family, and shall indicate whether or 
412.16  not these services are available and accessible to the child and 
412.17  family.  
412.18     During the screening process, the child, child's family, or 
412.19  child's legal representative, as appropriate, must be informed 
412.20  of the child's eligibility for case management services and 
412.21  family community support services and that an individual family 
412.22  community support plan is being developed by the case manager, 
412.23  if assigned.  
412.24     Screening shall be in compliance with section 256F.07 or 
412.25  260C.212, whichever applies.  Wherever possible, the parent 
412.26  shall be consulted in the screening process, unless clinically 
412.27  inappropriate.  
412.28     The screening process, and placement decision, and 
412.29  recommendations for mental health services must be documented in 
412.30  the child's record.  
412.31     An alternate review process may be approved by the 
412.32  commissioner if the county board demonstrates that an alternate 
412.33  review process has been established by the county board and the 
412.34  times of review, persons responsible for the review, and review 
412.35  criteria are comparable to the standards in clauses (1) to (4). 
412.36     Sec. 10.  Minnesota Statutes 2000, section 245.4886, 
413.1   subdivision 1, is amended to read: 
413.2      Subdivision 1.  [STATEWIDE PROGRAM; ESTABLISHMENT.] The 
413.3   commissioner shall establish a statewide program to assist 
413.4   counties in providing services to children with severe emotional 
413.5   disturbance as defined in section 245.4871, subdivision 15, and 
413.6   their families; and to young adults meeting the criteria for 
413.7   transition services in section 245.4875, subdivision 8, and 
413.8   their families.  Services must be designed to help each child to 
413.9   function and remain with the child's family in the community.  
413.10  Transition services to eligible young adults must be designed to 
413.11  foster independent living in the community.  The commissioner 
413.12  shall make grants to counties to establish, operate, or contract 
413.13  with private providers to provide the following services in the 
413.14  following order of priority when these cannot be reimbursed 
413.15  under section 256B.0625: 
413.16     (1) family community support services including crisis 
413.17  placement and crisis respite care as specified in section 
413.18  245.4871, subdivision 17; 
413.19     (2) case management services as specified in section 
413.20  245.4871, subdivision 3; 
413.21     (3) day treatment services as specified in section 
413.22  245.4871, subdivision 10; 
413.23     (4) professional home-based family treatment as specified 
413.24  in section 245.4871, subdivision 31; and 
413.25     (5) therapeutic support of foster care as specified in 
413.26  section 245.4871, subdivision 34. 
413.27     Funding appropriated beginning July 1, 1991, must be used 
413.28  by county boards to provide family community support services 
413.29  and case management services.  Additional services shall be 
413.30  provided in the order of priority as identified in this 
413.31  subdivision. 
413.32     Sec. 11.  Minnesota Statutes 2000, section 245.99, 
413.33  subdivision 4, is amended to read: 
413.34     Subd. 4.  [ADMINISTRATION OF CRISIS HOUSING ASSISTANCE.] 
413.35  The commissioner may contract with organizations or government 
413.36  units experienced in housing assistance to operate the program 
414.1   under this section.  This program is not an entitlement.  The 
414.2   commissioner may take any of the following steps whenever the 
414.3   commissioner projects that funds will be inadequate to meet 
414.4   demand in a given fiscal year: 
414.5      (1) transfer funds from mental health grants in the same 
414.6   appropriation; and 
414.7      (2) impose statewide restrictions as to the type and amount 
414.8   of assistance available to each recipient under this program 
414.9   including reducing the income eligibility level, limiting 
414.10  reimbursement to a percentage of each recipient's costs, 
414.11  limiting housing assistance to 60 days per recipient, or closing 
414.12  the program for the remainder of the fiscal year. 
414.13     Sec. 12.  Minnesota Statutes 2000, section 256.969, 
414.14  subdivision 3a, is amended to read: 
414.15     Subd. 3a.  [PAYMENTS.] Acute care hospital billings under 
414.16  the medical assistance program must not be submitted until the 
414.17  recipient is discharged.  However, the commissioner shall 
414.18  establish monthly interim payments for inpatient hospitals that 
414.19  have individual patient lengths of stay over 30 days regardless 
414.20  of diagnostic category.  Except as provided in section 256.9693, 
414.21  medical assistance reimbursement for treatment of mental illness 
414.22  shall be reimbursed based on diagnostic classifications.  The 
414.23  commissioner may selectively contract with hospitals for 
414.24  services within the diagnostic categories relating to mental 
414.25  illness and chemical dependency under competitive bidding when 
414.26  reasonable geographic access by recipients can be assured.  No 
414.27  physician shall be denied the privilege of treating a recipient 
414.28  required to use a hospital under contract with the commissioner, 
414.29  as long as the physician meets credentialing standards of the 
414.30  individual hospital.  Individual hospital payments established 
414.31  under this section and sections 256.9685, 256.9686, and 
414.32  256.9695, in addition to third party and recipient liability, 
414.33  for discharges occurring during the rate year shall not exceed, 
414.34  in aggregate, the charges for the medical assistance covered 
414.35  inpatient services paid for the same period of time to the 
414.36  hospital.  This payment limitation shall be calculated 
415.1   separately for medical assistance and general assistance medical 
415.2   care services.  The limitation on general assistance medical 
415.3   care shall be effective for admissions occurring on or after 
415.4   July 1, 1991.  Services that have rates established under 
415.5   subdivision 11 or 12, must be limited separately from other 
415.6   services.  After consulting with the affected hospitals, the 
415.7   commissioner may consider related hospitals one entity and may 
415.8   merge the payment rates while maintaining separate provider 
415.9   numbers.  The operating and property base rates per admission or 
415.10  per day shall be derived from the best Medicare and claims data 
415.11  available when rates are established.  The commissioner shall 
415.12  determine the best Medicare and claims data, taking into 
415.13  consideration variables of recency of the data, audit 
415.14  disposition, settlement status, and the ability to set rates in 
415.15  a timely manner.  The commissioner shall notify hospitals of 
415.16  payment rates by December 1 of the year preceding the rate 
415.17  year.  The rate setting data must reflect the admissions data 
415.18  used to establish relative values.  Base year changes from 1981 
415.19  to the base year established for the rate year beginning January 
415.20  1, 1991, and for subsequent rate years, shall not be limited to 
415.21  the limits ending June 30, 1987, on the maximum rate of increase 
415.22  under subdivision 1.  The commissioner may adjust base year 
415.23  cost, relative value, and case mix index data to exclude the 
415.24  costs of services that have been discontinued by the October 1 
415.25  of the year preceding the rate year or that are paid separately 
415.26  from inpatient services.  Inpatient stays that encompass 
415.27  portions of two or more rate years shall have payments 
415.28  established based on payment rates in effect at the time of 
415.29  admission unless the date of admission preceded the rate year in 
415.30  effect by six months or more.  In this case, operating payment 
415.31  rates for services rendered during the rate year in effect and 
415.32  established based on the date of admission shall be adjusted to 
415.33  the rate year in effect by the hospital cost index. 
415.34     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
415.35     Sec. 13.  [256.9693] [CONTINUING CARE PROGRAM FOR PERSONS 
415.36  WITH MENTAL ILLNESS.] 
416.1      The commissioner shall establish a continuing care benefit 
416.2   program for persons with mental illness, in which persons with 
416.3   mental illness may obtain acute care hospital inpatient 
416.4   treatment for mental illness for up to 45 days beyond that 
416.5   allowed by section 256.969.  Persons with mental illness who are 
416.6   eligible for medical assistance may obtain inpatient treatment 
416.7   under this program in hospital beds for which the commissioner 
416.8   contracts under this section.  The commissioner may selectively 
416.9   contract with hospitals to provide this benefit through 
416.10  competitive bidding when reasonable geographic access by 
416.11  recipients can be assured.  Payments under this section shall 
416.12  not affect payments under section 256.969.  The commissioner may 
416.13  contract externally with a utilization review organization to 
416.14  authorize persons with mental illness to access the continuing 
416.15  care benefit program.  The commissioner, as part of the 
416.16  contracts with hospitals, shall establish admission criteria to 
416.17  allow persons with mental illness to access the continuing care 
416.18  benefit program.  If a court orders acute care hospital 
416.19  inpatient treatment for mental illness for a person, the person 
416.20  may obtain the treatment under the continuing care benefit 
416.21  program.  The commissioner shall not require, as part of the 
416.22  admission criteria, any commitment or petition under chapter 
416.23  253B as a condition of accessing the program.  This benefit is 
416.24  not available for people who are also eligible for Medicare and 
416.25  who have not exhausted their annual or lifetime inpatient 
416.26  psychiatric benefit under Medicare.  If a recipient is enrolled 
416.27  in a prepaid plan, this program is included in the plan's 
416.28  coverage.  
416.29     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
416.30     Sec. 14.  [256B.0623] [ADULT REHABILITATIVE MENTAL HEALTH 
416.31  SERVICES.] 
416.32     Subdivision 1.  [SCOPE.] Medical assistance covers adult 
416.33  rehabilitative mental health services as defined in subdivision 
416.34  2, subject to federal approval, if provided to recipients as 
416.35  defined in subdivision 3 and provided by a qualified provider 
416.36  entity meeting the standards in this section and by a qualified 
417.1   individual provider working within the provider's scope of 
417.2   practice and identified in the recipient's individual treatment 
417.3   plan as defined in section 245.462, subdivision 14, and if 
417.4   determined to be medically necessary according to section 62Q.53.
417.5      Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
417.6   following terms have the meanings given them. 
417.7      (a) "Adult rehabilitative mental health services" means 
417.8   mental health services which are rehabilitative and enable the 
417.9   recipient to develop and enhance psychiatric stability, social 
417.10  competencies, personal and emotional adjustment, and independent 
417.11  living and community skills, when these abilities are impaired 
417.12  by the symptoms of mental illness.  Adult rehabilitative mental 
417.13  health services are also appropriate when provided to enable a 
417.14  recipient to retain stability and functioning, if the recipient 
417.15  would be at risk of significant functional decompensation or 
417.16  more restrictive service settings without these services. 
417.17     (1) Adult rehabilitative mental health services instruct, 
417.18  assist, and support the recipient in areas such as:  
417.19  interpersonal communication skills, community resource 
417.20  utilization and integration skills, crisis assistance, relapse 
417.21  prevention skills, health care directives, budgeting and 
417.22  shopping skills, healthy lifestyle skills and practices, cooking 
417.23  and nutrition skills, transportation skills, medication 
417.24  education and monitoring, mental illness symptom management 
417.25  skills, household management skills, employment-related skills, 
417.26  and transition to community living services. 
417.27     (2) These services shall be provided to the recipient on a 
417.28  one-to-one basis in the recipient's home or another community 
417.29  setting or in groups. 
417.30     (b) "Medication education services" means services provided 
417.31  individually or in groups which focus on educating the recipient 
417.32  about mental illness and symptoms; the role and effects of 
417.33  medications in treating symptoms of mental illness; and the side 
417.34  effects of medications.  Medication education is coordinated 
417.35  with medication management services, and does not duplicate it.  
417.36  Medication education services are provided by physicians, 
418.1   pharmacists, or registered nurses. 
418.2      (c) "Transition to community living services" means 
418.3   services which maintain continuity of contact between the 
418.4   rehabilitation services provider and the recipient and which 
418.5   facilitate discharge from a hospital, residential treatment 
418.6   program under Minnesota Rules, chapter 9505, board and lodging 
418.7   facility, or nursing home. Transition to community living 
418.8   services are not intended to provide other areas of adult 
418.9   rehabilitative mental health services.  
418.10     Subd. 3.  [ELIGIBILITY.] An eligible recipient is an 
418.11  individual who: 
418.12     (1) is age 18 or older; 
418.13     (2) is diagnosed with a medical condition, such as mental 
418.14  illness or traumatic brain injury, for which adult 
418.15  rehabilitative mental health services are needed; 
418.16     (3) has substantial disability and functional impairment in 
418.17  three or more of the areas listed in section 245.462, 
418.18  subdivision 11a, so that self-sufficiency is markedly reduced; 
418.19  and 
418.20     (4) has had a recent diagnostic assessment by a qualified 
418.21  professional that documents adult rehabilitative mental health 
418.22  services are medically necessary to address identified 
418.23  disability and functional impairments and individual recipient 
418.24  goals. 
418.25     Subd. 4.  [PROVIDER ENTITY STANDARDS.] (a) The provider 
418.26  entity must be: 
418.27     (1) a county operated entity certified by the state; or 
418.28     (2) a noncounty entity certified by the entity's host 
418.29  county. 
418.30     (b) The certification process is a determination as to 
418.31  whether the entity meets the standards in this subdivision.  The 
418.32  certification must specify which adult rehabilitative mental 
418.33  health services the entity is qualified to provide. 
418.34     (c) If an entity seeks to provide services outside its host 
418.35  county, it must obtain additional certification from each county 
418.36  in which it will provide services.  The additional certification 
419.1   must be based on the adequacy of the entity's knowledge of that 
419.2   county's local health and human service system, and the ability 
419.3   of the entity to coordinate its services with the other services 
419.4   available in that county. 
419.5      (d) Recertification must occur at least every two years. 
419.6      (e) The commissioner may intervene at any time and 
419.7   decertify providers with cause.  The decertification is subject 
419.8   to appeal to the state.  A county board may recommend that the 
419.9   state decertify a provider for cause. 
419.10     (f) The adult rehabilitative mental health services 
419.11  provider entity must meet the following standards: 
419.12     (1) have capacity to recruit, hire, manage, and train 
419.13  mental health professionals, mental health practitioners, and 
419.14  mental health rehabilitation workers; 
419.15     (2) have adequate administrative ability to ensure 
419.16  availability of services; 
419.17     (3) ensure adequate preservice and inservice training for 
419.18  staff; 
419.19     (4) ensure that mental health professionals, mental health 
419.20  practitioners, and mental health rehabilitation workers are 
419.21  skilled in the delivery of the specific adult rehabilitative 
419.22  mental health services provided to the individual eligible 
419.23  recipient; 
419.24     (5) ensure that staff is capable of implementing culturally 
419.25  specific services that are culturally competent and appropriate 
419.26  as determined by the recipient's culture, beliefs, values, and 
419.27  language as identified in the individual treatment plan; 
419.28     (6) ensure enough flexibility in service delivery to 
419.29  respond to the changing and intermittent care needs of a 
419.30  recipient as identified by the recipient and the individual 
419.31  treatment plan; 
419.32     (7) ensure that the mental health professional or mental 
419.33  health practitioner, who is under the clinical supervision of a 
419.34  mental health professional, involved in a recipient's services 
419.35  participates in the development of the individual treatment 
419.36  plan; 
420.1      (8) assist the recipient in arranging needed crisis 
420.2   assessment, intervention, and stabilization services; 
420.3      (9) ensure that services are coordinated with other 
420.4   recipient mental health services providers and the county mental 
420.5   health authority and the federally recognized American Indian 
420.6   authority and necessary others after obtaining the consent of 
420.7   the recipient.  Services must also be coordinated with the 
420.8   recipient's case manager or care coordinator, if the recipient 
420.9   is receiving case management or care coordination services; 
420.10     (10) develop and maintain recipient files, individual 
420.11  treatment plans, and contact charting; 
420.12     (11) develop and maintain staff training and personnel 
420.13  files; 
420.14     (12) submit information as required by the state; 
420.15     (13) establish and maintain a quality assurance plan to 
420.16  evaluate the outcome of services provided; 
420.17     (14) keep all necessary records required by law; 
420.18     (15) deliver services as required by section 245.461; 
420.19     (16) comply with all applicable laws; 
420.20     (17) be an enrolled Medicaid provider; 
420.21     (18) maintain a quality assurance plan to determine 
420.22  specific service outcomes and the recipient's satisfaction with 
420.23  services; and 
420.24     (19) develop and maintain written policies and procedures 
420.25  regarding service provision and administration of the provider 
420.26  entity. 
420.27     (g) The commissioner shall develop statewide procedures for 
420.28  provider certification, including timelines for counties to 
420.29  certify qualified providers. 
420.30     Subd. 5.  [QUALIFICATIONS OF PROVIDER STAFF.] Adult 
420.31  rehabilitative mental health services must be provided by 
420.32  qualified individual provider staff of a certified provider 
420.33  entity.  Individual provider staff must be qualified under one 
420.34  of the following criteria: 
420.35     (1) a mental health professional as defined in section 
420.36  245.462, subdivision 18, clauses (1) to (5); 
421.1      (2) a mental health practitioner as defined in section 
421.2   245.462, subdivision 17.  The mental health practitioner must 
421.3   work under the clinical supervision of a mental health 
421.4   professional; or 
421.5      (3) a mental health rehabilitation worker.  A mental health 
421.6   rehabilitation worker means a staff person working under the 
421.7   direction of a mental health practitioner or mental health 
421.8   professional, and under the clinical supervision of a mental 
421.9   health professional in the implementation of rehabilitative 
421.10  mental health services as identified in the recipient's 
421.11  individual treatment plan; and who: 
421.12     (i) is at least 21 years of age; 
421.13     (ii) has a high school diploma or equivalent; 
421.14     (iii) has successfully completed 30 hours of training 
421.15  during the past two years in all of the following areas:  
421.16  recipient rights, recipient-centered individual treatment 
421.17  planning, behavioral terminology, mental illness, co-occurring 
421.18  mental illness and substance abuse, psychotropic medications and 
421.19  side effects, functional assessment, local community resources, 
421.20  adult vulnerability, recipient confidentiality; and 
421.21     (iv) meets the qualifications in (A) or (B): 
421.22     (A) has an associate of arts degree in one of the 
421.23  behavioral sciences or human services, or is a registered nurse 
421.24  without a bachelor's degree, or who within the previous ten 
421.25  years has:  
421.26     (1) three years of personal life experience with serious 
421.27  and persistent mental illness; 
421.28     (2) three years of life experience as a primary caregiver 
421.29  to an adult with a serious mental illness or traumatic brain 
421.30  injury; or 
421.31     (3) 4,000 hours of supervised paid work experience in the 
421.32  delivery of mental health services to adults with a serious 
421.33  mental illness or traumatic brain injury; or 
421.34     (B)(1) be fluent in the non-English language or competent 
421.35  in the culture of the ethnic group to which at least 50 percent 
421.36  of the mental health rehabilitation worker's clients belong; 
422.1      (2) receives during the first 2,000 hours of work, monthly 
422.2   documented individual clinical supervision by a mental health 
422.3   professional; 
422.4      (3) has 18 hours of documented field supervision by a 
422.5   mental health professional or practitioner during the first 160 
422.6   hours of contact work with recipients, and at least six hours of 
422.7   field supervision quarterly during the following year; 
422.8      (4) has review and cosignature of charting of recipient 
422.9   contacts during field supervision by a mental health 
422.10  professional or practitioner; and 
422.11     (5) has 40 hours of additional continuing education on 
422.12  mental health topics during the first year of employment. 
422.13     Subd. 6.  [REQUIRED TRAINING AND SUPERVISION.] (a) Mental 
422.14  health rehabilitation workers must receive ongoing continuing 
422.15  education training of at least 30 hours every two years in areas 
422.16  of mental illness and mental health services and other areas 
422.17  specific to the population being served.  Mental health 
422.18  rehabilitation workers must also be subject to the ongoing 
422.19  direction and clinical supervision standards in paragraphs (c) 
422.20  and (d). 
422.21     (b) Mental health practitioners must receive ongoing 
422.22  continuing education training as required by their professional 
422.23  license; or if the practitioner is not licensed, the 
422.24  practitioner must receive ongoing continuing education training 
422.25  of at least 30 hours every two years in areas of mental illness 
422.26  and mental health services.  Mental health practitioners must 
422.27  meet the ongoing clinical supervision standards in paragraph (c).
422.28     (c) A mental health professional providing clinical 
422.29  supervision of staff delivering adult rehabilitative mental 
422.30  health services must provide the following guidance: 
422.31     (1) review the information in the recipient's file; 
422.32     (2) review and approve initial and updates of individual 
422.33  treatment plans; 
422.34     (3) meet with mental health rehabilitation workers and 
422.35  practitioners, individually or in small groups, at least monthly 
422.36  to discuss treatment topics of interest to the workers and 
423.1   practitioners; 
423.2      (4) meet with mental health rehabilitation workers and 
423.3   practitioners, individually or in small groups, at least monthly 
423.4   to discuss treatment plans of recipients, and approve by 
423.5   signature and document in the recipient's file any resulting 
423.6   plan updates; 
423.7      (5) meet at least twice a month with the directing mental 
423.8   health practitioner, if there is one, to review needs of the 
423.9   adult rehabilitative mental health services program, review 
423.10  staff on-site observations and evaluate mental health 
423.11  rehabilitation workers, plan staff training, review program 
423.12  evaluation and development, and consult with the directing 
423.13  practitioner; 
423.14     (6) be available for urgent consultation as the individual 
423.15  recipient needs or the situation necessitates; and 
423.16     (7) provide clinical supervision by full- or part-time 
423.17  mental health professionals employed by or under contract with 
423.18  the provider entity. 
423.19     (d) An adult rehabilitative mental health services provider 
423.20  entity must have a treatment director who is a mental health 
423.21  practitioner or mental health professional.  The treatment 
423.22  director must ensure the following: 
423.23     (1) while delivering direct services to recipients, a newly 
423.24  hired mental health rehabilitation worker must be directly 
423.25  observed delivering services to recipients by the mental health 
423.26  practitioner or mental health professional for at least six 
423.27  hours per 40 hours worked during the first 160 hours that the 
423.28  mental health rehabilitation worker works; 
423.29     (2) the mental health rehabilitation worker must receive 
423.30  ongoing on-site direct service observation by a mental health 
423.31  professional or mental health practitioner for at least six 
423.32  hours for every six months of employment; 
423.33     (3) progress notes are reviewed from on-site service 
423.34  observation prepared by the mental health rehabilitation worker 
423.35  and mental health practitioner for accuracy and consistency with 
423.36  actual recipient contact and the individual treatment plan and 
424.1   goals; 
424.2      (4) immediate availability by phone or in person for 
424.3   consultation by a mental health professional or a mental health 
424.4   practitioner to the mental health rehabilitation services worker 
424.5   during service provision; 
424.6      (5) oversee the identification of changes in individual 
424.7   recipient treatment strategies, revise the plan and communicate 
424.8   treatment instructions and methodologies as appropriate to 
424.9   ensure that treatment is implemented correctly; 
424.10     (6) model service practices which:  respect the recipient, 
424.11  include the recipient in planning and implementation of the 
424.12  individual treatment plan, recognize the recipient's strengths, 
424.13  collaborate and coordinate with other involved parties and 
424.14  providers; 
424.15     (7) ensure that mental health practitioners and mental 
424.16  health rehabilitation workers are able to effectively 
424.17  communicate with the recipients, significant others, and 
424.18  providers; and 
424.19     (8) oversee the record of the results of on-site 
424.20  observation and charting evaluation and corrective actions taken 
424.21  to modify the work of the mental health practitioners and mental 
424.22  health rehabilitation workers. 
424.23     (e) A mental health practitioner who is providing treatment 
424.24  direction for a provider entity must receive supervision at 
424.25  least monthly from a mental health professional to: 
424.26     (1) identify and plan for general needs of the recipient 
424.27  population served; 
424.28     (2) identify and plan to address provider entity program 
424.29  needs and effectiveness; 
424.30     (3) identify and plan provider entity staff training and 
424.31  personnel needs and issues; and 
424.32     (4) plan, implement, and evaluate provider entity quality 
424.33  improvement programs.  
424.34     Subd. 7.  [PERSONNEL FILE.] The adult rehabilitative mental 
424.35  health services provider entity must maintain a personnel file 
424.36  on each staff.  Each file must contain: 
425.1      (1) an annual performance review; 
425.2      (2) a summary of on-site service observations and charting 
425.3   review; 
425.4      (3) a criminal background check of all direct service 
425.5   staff; 
425.6      (4) evidence of academic degree and qualifications; 
425.7      (5) a copy of professional license; 
425.8      (6) any job performance recognition and disciplinary 
425.9   actions; 
425.10     (7) any individual staff written input into own personnel 
425.11  file; 
425.12     (8) all clinical supervision provided; and 
425.13     (9) documentation of compliance with continuing education 
425.14  requirements. 
425.15     Subd. 8.  [DIAGNOSTIC ASSESSMENT.] Providers of adult 
425.16  rehabilitative mental health services must complete a diagnostic 
425.17  assessment as defined in section 245.462, subdivision 9, within 
425.18  five days after the recipient's second visit or within 30 days 
425.19  after intake, whichever occurs first.  In cases where a 
425.20  diagnostic assessment is available that reflects the recipient's 
425.21  current status, and has been completed within 180 days preceding 
425.22  admission, an update must be completed.  An update shall include 
425.23  a written summary by a mental health professional of the 
425.24  recipient's current mental health status and service needs.  If 
425.25  the recipient's mental health status has changed significantly 
425.26  since the adult's most recent diagnostic assessment, a new 
425.27  diagnostic assessment is required. 
425.28     Subd. 9.  [FUNCTIONAL ASSESSMENT.] Providers of adult 
425.29  rehabilitative mental health services must complete a written 
425.30  functional assessment as defined in section 245.462, subdivision 
425.31  11a, for each recipient.  The functional assessment must be 
425.32  completed within 30 days of intake, and reviewed and updated at 
425.33  least every six months after it is developed, unless there is a 
425.34  significant change in the functioning of the recipient.  If 
425.35  there is a significant change in functioning, the assessment 
425.36  must be updated.  A single functional assessment can meet case 
426.1   management and adult rehabilitative mental health services 
426.2   requirements, if agreed to by the recipient.  Unless the 
426.3   recipient refuses, the recipient must have significant 
426.4   participation in the development of the functional assessment. 
426.5      Subd. 10.  [INDIVIDUAL TREATMENT PLAN.] All providers of 
426.6   adult rehabilitative mental health services must develop and 
426.7   implement an individual treatment plan for each recipient.  The 
426.8   provisions in clauses (1) and (2) apply: 
426.9      (1) Individual treatment plan means a plan of intervention, 
426.10  treatment, and services for an individual recipient written by a 
426.11  mental health professional or by a mental health practitioner 
426.12  under the clinical supervision of a mental health professional.  
426.13  The individual treatment plan must be based on diagnostic and 
426.14  functional assessments.  To the extent possible, the development 
426.15  and implementation of a treatment plan must be a collaborative 
426.16  process involving the recipient, and with the permission of the 
426.17  recipient, the recipient's family and others in the recipient's 
426.18  support system.  Providers of adult rehabilitative mental health 
426.19  services must develop the individual treatment plan within 30 
426.20  calendar days of intake.  The treatment plan must be updated at 
426.21  least every six months thereafter, or more often when there is 
426.22  significant change in the recipient's situation or functioning, 
426.23  or in services or service methods to be used, or at the request 
426.24  of the recipient or the recipient's legal guardian. 
426.25     (2) The individual treatment plan must include: 
426.26     (i) a list of problems identified in the assessment; 
426.27     (ii) the recipient's strengths and resources; 
426.28     (iii) concrete, measurable goals to be achieved, including 
426.29  time frames for achievement; 
426.30     (iv) specific objectives directed toward the achievement of 
426.31  each one of the goals; 
426.32     (v) documentation of participants in the treatment planning.
426.33  The recipient, if possible, must be a participant.  The 
426.34  recipient or the recipient's legal guardian must sign the 
426.35  treatment plan, or documentation must be provided why this was 
426.36  not possible.  A copy of the plan must be given to the recipient 
427.1   or legal guardian.  Referral to formal services must be 
427.2   arranged, including specific providers where applicable; 
427.3      (vi) cultural considerations, resources, and needs of the 
427.4   recipient must be included; 
427.5      (vii) planned frequency and type of services must be 
427.6   initiated; and 
427.7      (viii) clear progress notes on outcome of goals. 
427.8      (3) The individual community support plan defined in 
427.9   section 245.462, subdivision 12, may serve as the individual 
427.10  treatment plan if there is involvement of a mental health case 
427.11  manager, and with the approval of the recipient.  The individual 
427.12  community support plan must include the criteria in clause (2). 
427.13     Subd. 11.  [RECIPIENT FILE.] Providers of adult 
427.14  rehabilitative mental health services must maintain a file for 
427.15  each recipient that contains the following information: 
427.16     (1) diagnostic assessment or verification of its location, 
427.17  that is current and that was reviewed by a mental health 
427.18  professional who is employed by or under contract with the 
427.19  provider entity; 
427.20     (2) functional assessments; 
427.21     (3) individual treatment plans signed by the recipient and 
427.22  the mental health professional, or if the recipient refused to 
427.23  sign the plan, the date and reason stated by the recipient as to 
427.24  why the recipient would not sign the plan; 
427.25     (4) recipient history; 
427.26     (5) signed release forms; 
427.27     (6) recipient health information and current medications; 
427.28     (7) emergency contacts for the recipient; 
427.29     (8) case records which document the date of service, the 
427.30  place of service delivery, signature of the person providing the 
427.31  service, nature, extent and units of service, and place of 
427.32  service delivery; 
427.33     (9) contacts, direct or by telephone, with recipient's 
427.34  family or others, other providers, or other resources for 
427.35  service coordination; 
427.36     (10) summary of recipient case reviews by staff; and 
428.1      (11) written information by the recipient that the 
428.2   recipient requests be included in the file. 
428.3      Subd. 12.  [ADDITIONAL REQUIREMENTS.] (a) Providers of 
428.4   adult rehabilitative mental health services must comply with the 
428.5   requirements relating to referrals for case management in 
428.6   section 245.467, subdivision 4. 
428.7      (b) Adult rehabilitative mental health services are 
428.8   provided for most recipients in the recipient's home and 
428.9   community.  Services may also be provided at the home of a 
428.10  relative or significant other, job site, psychosocial clubhouse, 
428.11  drop-in center, social setting, classroom, or other places in 
428.12  the community.  Except for "transition to community services," 
428.13  the place of service does not include a regional treatment 
428.14  center, nursing home, residential treatment facility licensed 
428.15  under Minnesota Rules, parts 9520.0500 to 9520.0670 (Rule 36), 
428.16  or an acute care hospital. 
428.17     (c) Adult rehabilitative mental health services may be 
428.18  provided in group settings if appropriate to each participating 
428.19  recipient's needs and treatment plan.  A group is defined as two 
428.20  to ten clients, at least one of whom is a recipient, who is 
428.21  concurrently receiving a service which is identified in this 
428.22  section.  The service and group must be specified in the 
428.23  recipient's treatment plan.  No more than two qualified staff 
428.24  may bill Medicaid for services provided to the same group of 
428.25  recipients.  If two adult rehabilitative mental health workers 
428.26  bill for recipients in the same group session, they must each 
428.27  bill for different recipients. 
428.28     Subd. 13.  [EXCLUDED SERVICES.] The following services are 
428.29  excluded from reimbursement as adult rehabilitative mental 
428.30  health services: 
428.31     (1) recipient transportation services; 
428.32     (2) a service provided and billed by a provider who is not 
428.33  enrolled to provide adult rehabilitative mental health service; 
428.34     (3) adult rehabilitative mental health services performed 
428.35  by volunteers; 
428.36     (4) provider performance of household tasks, chores, or 
429.1   related activities, such as laundering clothes, moving the 
429.2   recipient's household, housekeeping, and grocery shopping for 
429.3   the recipient; 
429.4      (5) direct billing of time spent "on call" when not 
429.5   delivering services to recipients; 
429.6      (6) activities which are primarily social or recreational 
429.7   in nature, rather than rehabilitative, for the individual 
429.8   recipient, as determined by the individual's needs and treatment 
429.9   plan; 
429.10     (7) job-specific skills services, such as on-the-job 
429.11  training; 
429.12     (8) provider service time included in case management 
429.13  reimbursement; 
429.14     (9) outreach services to potential recipients; 
429.15     (10) a mental health service that is not medically 
429.16  necessary; and 
429.17     (11) any services provided by a hospital, board and 
429.18  lodging, or residential facility to an individual who is a 
429.19  patient in or resident of that facility. 
429.20     Subd. 14.  [BILLING WHEN SERVICES ARE PROVIDED BY QUALIFIED 
429.21  STATE STAFF.] When rehabilitative services are provided by 
429.22  qualified state staff who are assigned to pilot projects under 
429.23  section 245.4661, the county or other local entity to which the 
429.24  qualified state staff are assigned may consider these staff part 
429.25  of the local provider entity for which certification is sought 
429.26  under this section, and may bill the medical assistance program 
429.27  for qualifying services provided by the qualified state staff.  
429.28  Notwithstanding section 256.025, subdivision 2, payments for 
429.29  services provided by state staff who are assigned to adult 
429.30  mental health initiatives shall only be made from federal funds. 
429.31     Sec. 15.  [256B.0624] [ADULT MENTAL HEALTH CRISIS RESPONSE 
429.32  SERVICES.] 
429.33     Subdivision 1.  [SCOPE.] Medical assistance covers adult 
429.34  mental health crisis response services as defined in subdivision 
429.35  2, paragraphs (c) to (e), subject to federal approval, if 
429.36  provided to a recipient as defined in subdivision 3 and provided 
430.1   by a qualified provider entity as defined in this section and by 
430.2   a qualified individual provider working within the provider's 
430.3   scope of practice and as defined in this subdivision and 
430.4   identified in the recipient's individual crisis treatment plan 
430.5   as defined in subdivision 10 and if determined to be medically 
430.6   necessary.  
430.7      Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
430.8   following terms have the meanings given them. 
430.9      (a) "Mental health crisis" is an adult behavioral, 
430.10  emotional, or psychiatric situation which, but for the provision 
430.11  of crisis response services, would likely result in 
430.12  significantly reduced levels of functioning in primary 
430.13  activities of daily living, or in an emergency situation, or in 
430.14  the placement of the recipient in a more restrictive setting, 
430.15  including, but not limited to, inpatient hospitalization.  
430.16     (b) "Mental health emergency" is an adult behavioral, 
430.17  emotional, or psychiatric situation which causes an immediate 
430.18  need for mental health services and is consistent with section 
430.19  62Q.55. 
430.20     A mental health crisis or emergency is determined for 
430.21  medical assistance service reimbursement by a physician, a 
430.22  mental health professional, or crisis mental health practitioner 
430.23  with input from the recipient whenever possible. 
430.24     (c) "Mental health crisis assessment" means an immediate 
430.25  face-to-face assessment by a physician, a mental health 
430.26  professional, or mental health practitioner under the clinical 
430.27  supervision of a mental health professional, following a 
430.28  screening that suggests that the adult may be experiencing a 
430.29  mental health crisis or mental health emergency situation. 
430.30     (d) "Mental health mobile crisis intervention services" 
430.31  means face-to-face, short-term intensive mental health services 
430.32  initiated during a mental health crisis or mental health 
430.33  emergency to help the recipient cope with immediate stressors, 
430.34  identify and utilize available resources and strengths, and 
430.35  begin to return to the recipient's baseline level of functioning.
430.36     (1) This service is provided on-site by a mobile crisis 
431.1   intervention team outside of an inpatient hospital setting.  
431.2   Mental health mobile crisis intervention services must be 
431.3   available 24 hours a day, seven days a week.  
431.4      (2) The initial screening must consider other available 
431.5   services to determine which service intervention would best 
431.6   address the recipient's needs and circumstances.  
431.7      (3) The mobile crisis intervention team must be available 
431.8   to meet promptly face-to-face with a person in mental health 
431.9   crisis or emergency in a community setting.  
431.10     (4) The intervention must consist of a mental health crisis 
431.11  assessment and a crisis treatment plan.  
431.12     (5) The treatment plan must include recommendations for any 
431.13  needed crisis stabilization services for the recipient. 
431.14     (e) "Mental health crisis stabilization services" means 
431.15  individualized mental health services provided to a recipient 
431.16  following crisis intervention services which are designed to 
431.17  restore the recipient to the recipient's prior functional 
431.18  level.  Mental health crisis stabilization services may be 
431.19  provided in the recipient's home, the home of a family member or 
431.20  friend of the recipient, another community setting, or a 
431.21  short-term supervised, licensed residential program.  Mental 
431.22  health crisis stabilization does not include partial 
431.23  hospitalization or day treatment. 
431.24     Subd. 3.  [ELIGIBILITY.] An eligible recipient is an 
431.25  individual who: 
431.26     (1) is age 18 or older; 
431.27     (2) is screened as possibly experiencing a mental health 
431.28  crisis or emergency where a mental health crisis assessment is 
431.29  needed; and 
431.30     (3) is assessed as experiencing a mental health crisis or 
431.31  emergency, and mental health crisis intervention or crisis 
431.32  intervention and stabilization services are determined to be 
431.33  medically necessary.  
431.34     Subd. 4.  [PROVIDER ENTITY STANDARDS.] (a) A provider 
431.35  entity is an entity that meets the standards listed in paragraph 
431.36  (b) and: 
432.1      (1) is a county board operated entity; or 
432.2      (2) is a provider entity that is under contract with the 
432.3   county board in the county where the potential crisis or 
432.4   emergency is occurring.  To provide services under this section, 
432.5   the provider entity must directly provide the services; or if 
432.6   services are subcontracted, the provider entity must maintain 
432.7   responsibility for services and billing. 
432.8      (b) The adult mental health crisis response services 
432.9   provider entity must meet the following standards: 
432.10     (1) has the capacity to recruit, hire, and manage and train 
432.11  mental health professionals, practitioners, and rehabilitation 
432.12  workers; 
432.13     (2) has adequate administrative ability to ensure 
432.14  availability of services; 
432.15     (3) is able to ensure adequate preservice and in-service 
432.16  training; 
432.17     (4) is able to ensure that staff providing these services 
432.18  are skilled in the delivery of mental health crisis response 
432.19  services to recipients; 
432.20     (5) is able to ensure that staff are capable of 
432.21  implementing culturally specific treatment identified in the 
432.22  individual treatment plan that is meaningful and appropriate as 
432.23  determined by the recipient's culture, beliefs, values, and 
432.24  language; 
432.25     (6) is able to ensure enough flexibility to respond to the 
432.26  changing intervention and care needs of a recipient as 
432.27  identified by the recipient during the service partnership 
432.28  between the recipient and providers; 
432.29     (7) is able to ensure that mental health professionals and 
432.30  mental health practitioners have the communication tools and 
432.31  procedures to communicate and consult promptly about crisis 
432.32  assessment and interventions as services occur; 
432.33     (8) is able to coordinate these services with county 
432.34  emergency services and mental health crisis services; 
432.35     (9) is able to ensure that mental health crisis assessment 
432.36  and mobile crisis intervention services are available 24 hours a 
433.1   day, seven days a week; 
433.2      (10) is able to ensure that services are coordinated with 
433.3   other mental health service providers, county mental health 
433.4   authorities, or federally recognized American Indian authorities 
433.5   and others as necessary, with the consent of the adult.  
433.6   Services must also be coordinated with the recipient's case 
433.7   manager if the adult is receiving case management services; 
433.8      (11) is able to ensure that crisis intervention services 
433.9   are provided in a manner consistent with sections 245.461 to 
433.10  245.486; 
433.11     (12) is able to submit information as required by the 
433.12  state; 
433.13     (13) maintains staff training and personnel files; 
433.14     (14) is able to establish and maintain a quality assurance 
433.15  and evaluation plan to evaluate the outcomes of services and 
433.16  recipient satisfaction; 
433.17     (15) is able to keep records as required by applicable 
433.18  laws; 
433.19     (16) is able to comply with all applicable laws and 
433.20  statutes; 
433.21     (17) is an enrolled medical assistance provider; and 
433.22     (18) develops and maintains written policies and procedures 
433.23  regarding service provision and administration of the provider 
433.24  entity including safety of staff and recipients in high risk 
433.25  situations.  
433.26     Subd. 5.  [MOBILE CRISIS INTERVENTION STAFF 
433.27  QUALIFICATIONS.] For provision of adult mental health mobile 
433.28  crisis intervention services, a mobile crisis intervention team 
433.29  is comprised of at least two mental health professionals as 
433.30  defined in section 245.462, subdivision 18, clauses (1) to (5), 
433.31  or a combination of at least one mental health professional and 
433.32  one mental health practitioner as defined in section 245.462, 
433.33  subdivision 17, with the required mental health crisis training 
433.34  and under the clinical supervision of a mental health 
433.35  professional on the team.  The team must have at least two 
433.36  people with at least one member providing on-site crisis 
434.1   intervention services when needed.  Team members must be 
434.2   experienced in mental health assessment, crisis intervention 
434.3   techniques, and clinical decision-making under emergency 
434.4   conditions and have knowledge of local services and resources.  
434.5   The team must recommend and coordinate the team's services with 
434.6   appropriate local resources such as the county social services 
434.7   agency, mental health services, and local law enforcement when 
434.8   necessary. 
434.9      Subd. 6.  [INITIAL SCREENING, CRISIS ASSESSMENT, AND MOBILE 
434.10  INTERVENTION TREATMENT PLANNING.] (a) Prior to initiating mobile 
434.11  crisis intervention services, a screening of the potential 
434.12  crisis situation must be conducted.  The screening may use the 
434.13  resources of crisis assistance and emergency services as defined 
434.14  in sections 245.462, subdivision 6, and 245.469, subdivisions 1 
434.15  and 2.  The screening must gather information, determine whether 
434.16  a crisis situation exists, identify parties involved, and 
434.17  determine an appropriate response. 
434.18     (b) If a crisis exists, a crisis assessment must be 
434.19  completed.  A crisis assessment evaluates any immediate needs 
434.20  for which emergency services are needed and, as time permits, 
434.21  the recipient's current life situation, sources of stress, 
434.22  mental health problems and symptoms, strengths, cultural 
434.23  considerations, support network, vulnerabilities, and current 
434.24  functioning. 
434.25     (c) If the crisis assessment determines mobile crisis 
434.26  intervention services are needed, the intervention services must 
434.27  be provided promptly.  As opportunity presents during the 
434.28  intervention, at least two members of the mobile crisis 
434.29  intervention team must confer directly or by telephone about the 
434.30  assessment, treatment plan, and actions taken and needed.  At 
434.31  least one of the team members must be on-site providing crisis 
434.32  intervention services.  If providing on-site crisis intervention 
434.33  services, a mental health practitioner must seek clinical 
434.34  supervision as required in subdivision 8. 
434.35     (d) The mobile crisis intervention team must develop an 
434.36  initial, brief crisis treatment plan as soon as appropriate but 
435.1   no later than 24 hours after the initial face-to-face 
435.2   intervention.  The plan must address the needs and problems 
435.3   noted in the crisis assessment and include measurable short-term 
435.4   goals, cultural considerations, and frequency and type of 
435.5   services to be provided to achieve the goals and reduce or 
435.6   eliminate the crisis.  The treatment plan must be updated as 
435.7   needed to reflect current goals and services. 
435.8      (e) The team must document which short-term goals have been 
435.9   met, and when no further crisis intervention services are 
435.10  required. 
435.11     (f) If the recipient's crisis is stabilized, but the 
435.12  recipient needs a referral to other services, the team must 
435.13  provide referrals to these services.  If the recipient has a 
435.14  case manager, planning for other services must be coordinated 
435.15  with the case manager. 
435.16     Subd. 7.  [CRISIS STABILIZATION SERVICES.] (a) Crisis 
435.17  stabilization services must be provided by qualified staff of a 
435.18  crisis stabilization services provider entity and must meet the 
435.19  following standards: 
435.20     (1) a crisis stabilization treatment plan must be developed 
435.21  which meets the criteria in subdivision 11; 
435.22     (2) staff must be qualified as defined in subdivision 8; 
435.23  and 
435.24     (3) services must be delivered according to the treatment 
435.25  plan and include face-to-face contact with the recipient by 
435.26  qualified staff for further assessment, help with referrals, 
435.27  updating of the crisis stabilization treatment plan, supportive 
435.28  counseling, skills training, and collaboration with other 
435.29  service providers in the community. 
435.30     (b) If crisis stabilization services are provided in a 
435.31  supervised, licensed residential setting, the recipient must be 
435.32  contacted face-to-face daily by a qualified mental health 
435.33  practitioner or mental health professional.  The program must 
435.34  have 24-hour-a-day residential staffing which may include staff 
435.35  who do not meet the qualifications in subdivision 8.  The 
435.36  residential staff must have 24-hour-a-day immediate direct or 
436.1   telephone access to a qualified mental health professional or 
436.2   practitioner. 
436.3      (c) If crisis stabilization services are provided in a 
436.4   supervised, licensed residential setting that serves no more 
436.5   than four adult residents, and no more than two are recipients 
436.6   of crisis stabilization services, the residential staff must 
436.7   include, for at least eight hours per day, at least one 
436.8   individual who meets the qualifications in subdivision 8. 
436.9      (d) If crisis stabilization services are provided in a 
436.10  supervised, licensed residential setting that serves more than 
436.11  four adult residents, and one or more are recipients of crisis 
436.12  stabilization services, the residential staff must include, for 
436.13  24 hours a day, at least one individual who meets the 
436.14  qualifications in subdivision 8.  During the first 48 hours that 
436.15  a recipient is in the residential program, the residential 
436.16  program must have at least two staff working 24 hours a day.  
436.17  Staffing levels may be adjusted thereafter according to the 
436.18  needs of the recipient as specified in the crisis stabilization 
436.19  treatment plan. 
436.20     Subd. 8.  [ADULT CRISIS STABILIZATION STAFF 
436.21  QUALIFICATIONS.] (a) Adult mental health crisis stabilization 
436.22  services must be provided by qualified individual staff of a 
436.23  qualified provider entity.  Individual provider staff must have 
436.24  the following qualifications: 
436.25     (1) be a mental health professional as defined in section 
436.26  245.462, subdivision 18, clauses (1) to (5); 
436.27     (2) be a mental health practitioner as defined in section 
436.28  245.462, subdivision 17.  The mental health practitioner must 
436.29  work under the clinical supervision of a mental health 
436.30  professional; or 
436.31     (3) be a mental health rehabilitation worker who meets the 
436.32  criteria in section 256B.0623, subdivision 5, clause (3); works 
436.33  under the direction of a mental health practitioner as defined 
436.34  in section 245.462, subdivision 17, or under direction of a 
436.35  mental health professional; and works under the clinical 
436.36  supervision of a mental health professional. 
437.1      (b) Mental health practitioners and mental health 
437.2   rehabilitation workers must have completed at least 30 hours of 
437.3   training in crisis intervention and stabilization during the 
437.4   past two years. 
437.5      Subd. 9.  [SUPERVISION.] Mental health practitioners may 
437.6   provide crisis assessment and mobile crisis intervention 
437.7   services if the following clinical supervision requirements are 
437.8   met: 
437.9      (1) the mental health provider entity must accept full 
437.10  responsibility for the services provided; 
437.11     (2) the mental health professional of the provider entity, 
437.12  who is an employee or under contract with the provider entity, 
437.13  must be available by phone or in person for clinical 
437.14  supervision; 
437.15     (3) the mental health professional is consulted, in person 
437.16  or by phone, during the first three hours when a mental health 
437.17  practitioner provides on-site service; 
437.18     (4) the mental health professional must: 
437.19     (i) review and approve of the tentative crisis assessment 
437.20  and crisis treatment plan; 
437.21     (ii) document the consultation; and 
437.22     (iii) sign the crisis assessment and treatment plan within 
437.23  the next business day; 
437.24     (5) if the mobile crisis intervention services continue 
437.25  into a second calendar day, a mental health professional must 
437.26  contact the recipient face-to-face on the second day to provide 
437.27  services and update the crisis treatment plan; and 
437.28     (6) the on-site observation must be documented in the 
437.29  recipient's record and signed by the mental health professional. 
437.30     Subd. 10.  [RECIPIENT FILE.] Providers of mobile crisis 
437.31  intervention or crisis stabilization services must maintain a 
437.32  file for each recipient containing the following information: 
437.33     (1) individual crisis treatment plans signed by the 
437.34  recipient, mental health professional, and mental health 
437.35  practitioner who developed the crisis treatment plan, or if the 
437.36  recipient refused to sign the plan, the date and reason stated 
438.1   by the recipient as to why the recipient would not sign the 
438.2   plan; 
438.3      (2) signed release forms; 
438.4      (3) recipient health information and current medications; 
438.5      (4) emergency contacts for the recipient; 
438.6      (5) case records which document the date of service, place 
438.7   of service delivery, signature of the person providing the 
438.8   service, and the nature, extent, and units of service.  Direct 
438.9   or telephone contact with the recipient's family or others 
438.10  should be documented; 
438.11     (6) required clinical supervision by mental health 
438.12  professionals; 
438.13     (7) summary of the recipient's case reviews by staff; and 
438.14     (8) any written information by the recipient that the 
438.15  recipient wants in the file. 
438.16  Documentation in the file must comply with all requirements of 
438.17  the commissioner. 
438.18     Subd. 11.  [TREATMENT PLAN.] The individual crisis 
438.19  stabilization treatment plan must include, at a minimum: 
438.20     (1) a list of problems identified in the assessment; 
438.21     (2) a list of the recipient's strengths and resources; 
438.22     (3) concrete, measurable short-term goals and tasks to be 
438.23  achieved, including time frames for achievement; 
438.24     (4) specific objectives directed toward the achievement of 
438.25  each one of the goals; 
438.26     (5) documentation of the participants involved in the 
438.27  service planning.  The recipient, if possible, must be a 
438.28  participant.  The recipient or the recipient's legal guardian 
438.29  must sign the service plan or documentation must be provided why 
438.30  this was not possible.  A copy of the plan must be given to the 
438.31  recipient and the recipient's legal guardian.  The plan should 
438.32  include services arranged, including specific providers where 
438.33  applicable; 
438.34     (6) planned frequency and type of services initiated; 
438.35     (7) a crisis response action plan if a crisis should occur; 
438.36     (8) clear progress notes on outcome of goals; 
439.1      (9) a written plan must be completed within 24 hours of 
439.2   beginning services with the recipient; and 
439.3      (10) a treatment plan must be developed by a mental health 
439.4   professional or mental health practitioner under the clinical 
439.5   supervision of a mental health professional.  The mental health 
439.6   professional must approve and sign all treatment plans. 
439.7      Subd. 12.  [EXCLUDED SERVICES.] The following services are 
439.8   excluded from reimbursement under this section: 
439.9      (1) room and board services; 
439.10     (2) services delivered to a recipient while admitted to an 
439.11  inpatient hospital; 
439.12     (3) recipient transportation costs may be covered under 
439.13  other medical assistance provisions, but transportation services 
439.14  are not an adult mental health crisis response service; 
439.15     (4) services provided and billed by a provider who is not 
439.16  enrolled under medical assistance to provide adult mental health 
439.17  crisis response services; 
439.18     (5) services performed by volunteers; 
439.19     (6) direct billing of time spent "on call" when not 
439.20  delivering services to a recipient; 
439.21     (7) provider service time included in case management 
439.22  reimbursement.  When a provider is eligible to provide more than 
439.23  one type of medical assistance service, the recipient must have 
439.24  a choice of provider for each service, unless otherwise provided 
439.25  for by law; 
439.26     (8) outreach services to potential recipients; and 
439.27     (9) a mental health service that is not medically necessary.
439.28     Sec. 16.  Minnesota Statutes 2000, section 256B.0625, 
439.29  subdivision 20, is amended to read: 
439.30     Subd. 20.  [MENTAL HEALTH CASE MANAGEMENT.] (a) To the 
439.31  extent authorized by rule of the state agency, medical 
439.32  assistance covers case management services to persons with 
439.33  serious and persistent mental illness and children with severe 
439.34  emotional disturbance.  Services provided under this section 
439.35  must meet the relevant standards in sections 245.461 to 
439.36  245.4888, the Comprehensive Adult and Children's Mental Health 
440.1   Acts, Minnesota Rules, parts 9520.0900 to 9520.0926, and 
440.2   9505.0322, excluding subpart 10. 
440.3      (b) Entities meeting program standards set out in rules 
440.4   governing family community support services as defined in 
440.5   section 245.4871, subdivision 17, are eligible for medical 
440.6   assistance reimbursement for case management services for 
440.7   children with severe emotional disturbance when these services 
440.8   meet the program standards in Minnesota Rules, parts 9520.0900 
440.9   to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
440.10     (c) Medical assistance and MinnesotaCare payment for mental 
440.11  health case management shall be made on a monthly basis.  In 
440.12  order to receive payment for an eligible child, the provider 
440.13  must document at least a face-to-face contact with the child, 
440.14  the child's parents, or the child's legal representative.  To 
440.15  receive payment for an eligible adult, the provider must 
440.16  document: 
440.17     (1) at least a face-to-face contact with the adult or the 
440.18  adult's legal representative; or 
440.19     (2) at least a telephone contact with the adult or the 
440.20  adult's legal representative and document a face-to-face contact 
440.21  with the adult or the adult's legal representative within the 
440.22  preceding two months. 
440.23     (d) Payment for mental health case management provided by 
440.24  county or state staff shall be based on the monthly rate 
440.25  methodology under section 256B.094, subdivision 6, paragraph 
440.26  (b), with separate rates calculated for child welfare and mental 
440.27  health, and within mental health, separate rates for children 
440.28  and adults. 
440.29     (e) Payment for mental health case management provided by 
440.30  Indian health services or by agencies operated by Indian tribes 
440.31  may be made according to this section or other relevant 
440.32  federally approved rate setting methodology. 
440.33     (f) Payment for mental health case management provided by 
440.34  county-contracted vendors who contract with a county or Indian 
440.35  tribe shall be based on a monthly rate negotiated by the host 
440.36  county or tribe.  The negotiated rate must not exceed the rate 
441.1   charged by the vendor for the same service to other payers.  If 
441.2   the service is provided by a team of contracted vendors, the 
441.3   county or tribe may negotiate a team rate with a vendor who is a 
441.4   member of the team.  The team shall determine how to distribute 
441.5   the rate among its members.  No reimbursement received by 
441.6   contracted vendors shall be returned to the county or tribe, 
441.7   except to reimburse the county or tribe for advance funding 
441.8   provided by the county or tribe to the vendor. 
441.9      (f) (g) If the service is provided by a team which includes 
441.10  contracted vendors, tribal staff, and county or state staff, the 
441.11  costs for county or state staff participation in the team shall 
441.12  be included in the rate for county-provided services.  In this 
441.13  case, the contracted vendor, the tribal agency, and the county 
441.14  may each receive separate payment for services provided by each 
441.15  entity in the same month.  In order to prevent duplication of 
441.16  services, the county each entity must document, in the 
441.17  recipient's file, the need for team case management and a 
441.18  description of the roles of the team members. 
441.19     (g) (h) The commissioner shall calculate the nonfederal 
441.20  share of actual medical assistance and general assistance 
441.21  medical care payments for each county, based on the higher of 
441.22  calendar year 1995 or 1996, by service date, project that amount 
441.23  forward to 1999, and transfer one-half of the result from 
441.24  medical assistance and general assistance medical care to each 
441.25  county's mental health grants under sections 245.4886 and 
441.26  256E.12 for calendar year 1999.  The annualized minimum amount 
441.27  added to each county's mental health grant shall be $3,000 per 
441.28  year for children and $5,000 per year for adults.  The 
441.29  commissioner may reduce the statewide growth factor in order to 
441.30  fund these minimums.  The annualized total amount transferred 
441.31  shall become part of the base for future mental health grants 
441.32  for each county. 
441.33     (h) (i) Any net increase in revenue to the county or tribe 
441.34  as a result of the change in this section must be used to 
441.35  provide expanded mental health services as defined in sections 
441.36  245.461 to 245.4888, the Comprehensive Adult and Children's 
442.1   Mental Health Acts, excluding inpatient and residential 
442.2   treatment.  For adults, increased revenue may also be used for 
442.3   services and consumer supports which are part of adult mental 
442.4   health projects approved under Laws 1997, chapter 203, article 
442.5   7, section 25.  For children, increased revenue may also be used 
442.6   for respite care and nonresidential individualized 
442.7   rehabilitation services as defined in section 245.492, 
442.8   subdivisions 17 and 23.  "Increased revenue" has the meaning 
442.9   given in Minnesota Rules, part 9520.0903, subpart 3.  
442.10     (i) (j) Notwithstanding section 256B.19, subdivision 1, the 
442.11  nonfederal share of costs for mental health case management 
442.12  shall be provided by the recipient's county of responsibility, 
442.13  as defined in sections 256G.01 to 256G.12, from sources other 
442.14  than federal funds or funds used to match other federal 
442.15  funds.  If the service is provided by a tribal agency, the 
442.16  nonfederal share, if any, shall be provided by the recipient's 
442.17  tribe.  
442.18     (j) (k) The commissioner may suspend, reduce, or terminate 
442.19  the reimbursement to a provider that does not meet the reporting 
442.20  or other requirements of this section.  The county of 
442.21  responsibility, as defined in sections 256G.01 to 256G.12, or, 
442.22  if applicable, the tribal agency, is responsible for any federal 
442.23  disallowances.  The county or tribe may share this 
442.24  responsibility with its contracted vendors.  
442.25     (k) (l) The commissioner shall set aside a portion of the 
442.26  federal funds earned under this section to repay the special 
442.27  revenue maximization account under section 256.01, subdivision 
442.28  2, clause (15).  The repayment is limited to: 
442.29     (1) the costs of developing and implementing this section; 
442.30  and 
442.31     (2) programming the information systems. 
442.32     (l) (m) Notwithstanding section 256.025, subdivision 2, 
442.33  payments to counties and tribal agencies for case management 
442.34  expenditures under this section shall only be made from federal 
442.35  earnings from services provided under this section.  Payments to 
442.36  contracted county-contracted vendors shall include both the 
443.1   federal earnings and the county share. 
443.2      (m) (n) Notwithstanding section 256B.041, county payments 
443.3   for the cost of mental health case management services provided 
443.4   by county or state staff shall not be made to the state 
443.5   treasurer.  For the purposes of mental health case management 
443.6   services provided by county or state staff under this section, 
443.7   the centralized disbursement of payments to counties under 
443.8   section 256B.041 consists only of federal earnings from services 
443.9   provided under this section. 
443.10     (n) (o) Case management services under this subdivision do 
443.11  not include therapy, treatment, legal, or outreach services. 
443.12     (o) (p) If the recipient is a resident of a nursing 
443.13  facility, intermediate care facility, or hospital, and the 
443.14  recipient's institutional care is paid by medical assistance, 
443.15  payment for case management services under this subdivision is 
443.16  limited to the last 30 days of the recipient's residency in that 
443.17  facility and may not exceed more than two months in a calendar 
443.18  year. 
443.19     (p) (q) Payment for case management services under this 
443.20  subdivision shall not duplicate payments made under other 
443.21  program authorities for the same purpose. 
443.22     (q) (r) By July 1, 2000, the commissioner shall evaluate 
443.23  the effectiveness of the changes required by this section, 
443.24  including changes in number of persons receiving mental health 
443.25  case management, changes in hours of service per person, and 
443.26  changes in caseload size. 
443.27     (r) (s) For each calendar year beginning with the calendar 
443.28  year 2001, the annualized amount of state funds for each county 
443.29  determined under paragraph (g) (h) shall be adjusted by the 
443.30  county's percentage change in the average number of clients per 
443.31  month who received case management under this section during the 
443.32  fiscal year that ended six months prior to the calendar year in 
443.33  question, in comparison to the prior fiscal year. 
443.34     (s) (t) For counties receiving the minimum allocation of 
443.35  $3,000 or $5,000 described in paragraph (g) (h), the adjustment 
443.36  in paragraph (r) (s) shall be determined so that the county 
444.1   receives the higher of the following amounts: 
444.2      (1) a continuation of the minimum allocation in paragraph 
444.3   (g) (h); or 
444.4      (2) an amount based on that county's average number of 
444.5   clients per month who received case management under this 
444.6   section during the fiscal year that ended six months prior to 
444.7   the calendar year in question, in comparison to the prior fiscal 
444.8   year, times the average statewide grant per person per month for 
444.9   counties not receiving the minimum allocation. 
444.10     (t) (u) The adjustments in paragraphs (r) and (s) and (t) 
444.11  shall be calculated separately for children and adults. 
444.12     Sec. 17.  Minnesota Statutes 2000, section 256B.0625, is 
444.13  amended by adding a subdivision to read: 
444.14     Subd. 43.  [APPEAL PROCESS.] If a county contract or 
444.15  certification is required to enroll as an authorized provider of 
444.16  mental health services under medical assistance, and if a county 
444.17  refuses to grant the necessary contract or certification, the 
444.18  provider may appeal the county decision to the commissioner.  A 
444.19  recipient may initiate an appeal on behalf of a provider who has 
444.20  been denied certification.  The commissioner shall determine 
444.21  whether the provider meets applicable standards under state laws 
444.22  and rules based on an independent review of the facts, including 
444.23  comments from the county review.  If the commissioner finds that 
444.24  the provider meets the applicable standards, the commissioner 
444.25  shall enroll the provider as an authorized provider.  The 
444.26  commissioner shall develop procedures for providers and 
444.27  recipients to appeal a county decision to refuse to enroll a 
444.28  provider.  After the commissioner makes a decision regarding an 
444.29  appeal, the county, provider, or recipient may request that the 
444.30  commissioner reconsider the commissioner's initial decision. The 
444.31  commissioner's reconsideration decision is final and not subject 
444.32  to further appeal. 
444.33     Sec. 18.  Minnesota Statutes 2000, section 256B.0625, is 
444.34  amended by adding a subdivision to read: 
444.35     Subd. 44.  [MENTAL HEALTH PROVIDER TRAVEL TIME.] Medical 
444.36  assistance covers provider travel time if a recipient's 
445.1   individual treatment plan requires the provision of mental 
445.2   health services outside of the provider's normal place of 
445.3   business.  This does not include any travel time which is 
445.4   included in other billable services, and is only covered when 
445.5   the mental health service being provided to a recipient is 
445.6   covered under medical assistance. 
445.7      Sec. 19.  [256B.761] [REIMBURSEMENT FOR MENTAL HEALTH 
445.8   SERVICES.] 
445.9      Payment for medication management provided to psychiatric 
445.10  patients, outpatient mental health services, day treatment 
445.11  services, home-based mental health services, and family 
445.12  community support services shall be paid at: 
445.13     (1) for services rendered on or after July 1, 2001, and 
445.14  before July 1, 2002, the lower of (i) submitted charges, or (ii) 
445.15  the 73rd percentile of the 50th percentile of 1999 charges; and 
445.16     (2) for services rendered on or after July 1, 2002, the 
445.17  lower of (i) submitted charges, or (ii) the 75th percentile of 
445.18  the 50th percentile of 1999 charges. 
445.19     Sec. 20.  Minnesota Statutes 2000, section 260C.201, 
445.20  subdivision 1, is amended to read: 
445.21     Subdivision 1.  [DISPOSITIONS.] (a) If the court finds that 
445.22  the child is in need of protection or services or neglected and 
445.23  in foster care, it shall enter an order making any of the 
445.24  following dispositions of the case: 
445.25     (1) place the child under the protective supervision of the 
445.26  local social services agency or child-placing agency in the home 
445.27  of a parent of the child under conditions prescribed by the 
445.28  court directed to the correction of the child's need for 
445.29  protection or services, or: 
445.30     (i) the court may order the child into the home of a parent 
445.31  who does not otherwise have legal custody of the child, however, 
445.32  an order under this section does not confer legal custody on 
445.33  that parent; 
445.34     (ii) if the court orders the child into the home of a 
445.35  father who is not adjudicated, he must cooperate with paternity 
445.36  establishment proceedings regarding the child in the appropriate 
446.1   jurisdiction as one of the conditions prescribed by the court 
446.2   for the child to continue in his home; 
446.3      (iii) the court may order the child into the home of a 
446.4   noncustodial parent with conditions and may also order both the 
446.5   noncustodial and the custodial parent to comply with the 
446.6   requirements of a case plan under subdivision 2; 
446.7      (2) transfer legal custody to one of the following: 
446.8      (i) a child-placing agency; or 
446.9      (ii) the local social services agency. 
446.10     In placing a child whose custody has been transferred under 
446.11  this paragraph, the agencies shall follow the requirements of 
446.12  section 260C.193, subdivision 3; 
446.13     (3) if the child has been adjudicated as a child in need of 
446.14  protection or services because the child is in need of special 
446.15  treatment and services or care for reasons of physical or mental 
446.16  health to treat or ameliorate a physical or mental disability, 
446.17  the court may order the child's parent, guardian, or custodian 
446.18  to provide it.  If the parent, guardian, or custodian fails or 
446.19  is unable to provide this treatment or care, the court may order 
446.20  it provided.  The court may also order the child's health plan 
446.21  company to provide mental health services to the child under 
446.22  section 62Q.535.  Absent specific written findings by the court 
446.23  that the child's disability is the result of abuse or neglect by 
446.24  the child's parent or guardian, the court shall not transfer 
446.25  legal custody of the child for the purpose of obtaining special 
446.26  treatment or care solely because the parent is unable to provide 
446.27  the treatment or care.  If the court's order for mental health 
446.28  treatment is based on a diagnosis made by a treatment 
446.29  professional, the court may order that the diagnosing 
446.30  professional not provide the treatment to the child if it finds 
446.31  that such an order is in the child's best interests; or 
446.32     (4) if the court believes that the child has sufficient 
446.33  maturity and judgment and that it is in the best interests of 
446.34  the child, the court may order a child 16 years old or older to 
446.35  be allowed to live independently, either alone or with others as 
446.36  approved by the court under supervision the court considers 
447.1   appropriate, if the county board, after consultation with the 
447.2   court, has specifically authorized this dispositional 
447.3   alternative for a child. 
447.4      (b) If the child was adjudicated in need of protection or 
447.5   services because the child is a runaway or habitual truant, the 
447.6   court may order any of the following dispositions in addition to 
447.7   or as alternatives to the dispositions authorized under 
447.8   paragraph (a): 
447.9      (1) counsel the child or the child's parents, guardian, or 
447.10  custodian; 
447.11     (2) place the child under the supervision of a probation 
447.12  officer or other suitable person in the child's own home under 
447.13  conditions prescribed by the court, including reasonable rules 
447.14  for the child's conduct and the conduct of the parents, 
447.15  guardian, or custodian, designed for the physical, mental, and 
447.16  moral well-being and behavior of the child; or with the consent 
447.17  of the commissioner of corrections, place the child in a group 
447.18  foster care facility which is under the commissioner's 
447.19  management and supervision; 
447.20     (3) subject to the court's supervision, transfer legal 
447.21  custody of the child to one of the following: 
447.22     (i) a reputable person of good moral character.  No person 
447.23  may receive custody of two or more unrelated children unless 
447.24  licensed to operate a residential program under sections 245A.01 
447.25  to 245A.16; or 
447.26     (ii) a county probation officer for placement in a group 
447.27  foster home established under the direction of the juvenile 
447.28  court and licensed pursuant to section 241.021; 
447.29     (4) require the child to pay a fine of up to $100.  The 
447.30  court shall order payment of the fine in a manner that will not 
447.31  impose undue financial hardship upon the child; 
447.32     (5) require the child to participate in a community service 
447.33  project; 
447.34     (6) order the child to undergo a chemical dependency 
447.35  evaluation and, if warranted by the evaluation, order 
447.36  participation by the child in a drug awareness program or an 
448.1   inpatient or outpatient chemical dependency treatment program; 
448.2      (7) if the court believes that it is in the best interests 
448.3   of the child and of public safety that the child's driver's 
448.4   license or instruction permit be canceled, the court may order 
448.5   the commissioner of public safety to cancel the child's license 
448.6   or permit for any period up to the child's 18th birthday.  If 
448.7   the child does not have a driver's license or permit, the court 
448.8   may order a denial of driving privileges for any period up to 
448.9   the child's 18th birthday.  The court shall forward an order 
448.10  issued under this clause to the commissioner, who shall cancel 
448.11  the license or permit or deny driving privileges without a 
448.12  hearing for the period specified by the court.  At any time 
448.13  before the expiration of the period of cancellation or denial, 
448.14  the court may, for good cause, order the commissioner of public 
448.15  safety to allow the child to apply for a license or permit, and 
448.16  the commissioner shall so authorize; 
448.17     (8) order that the child's parent or legal guardian deliver 
448.18  the child to school at the beginning of each school day for a 
448.19  period of time specified by the court; or 
448.20     (9) require the child to perform any other activities or 
448.21  participate in any other treatment programs deemed appropriate 
448.22  by the court.  
448.23     To the extent practicable, the court shall enter a 
448.24  disposition order the same day it makes a finding that a child 
448.25  is in need of protection or services or neglected and in foster 
448.26  care, but in no event more than 15 days after the finding unless 
448.27  the court finds that the best interests of the child will be 
448.28  served by granting a delay.  If the child was under eight years 
448.29  of age at the time the petition was filed, the disposition order 
448.30  must be entered within ten days of the finding and the court may 
448.31  not grant a delay unless good cause is shown and the court finds 
448.32  the best interests of the child will be served by the delay. 
448.33     (c) If a child who is 14 years of age or older is 
448.34  adjudicated in need of protection or services because the child 
448.35  is a habitual truant and truancy procedures involving the child 
448.36  were previously dealt with by a school attendance review board 
449.1   or county attorney mediation program under section 260A.06 or 
449.2   260A.07, the court shall order a cancellation or denial of 
449.3   driving privileges under paragraph (b), clause (7), for any 
449.4   period up to the child's 18th birthday. 
449.5      (d) In the case of a child adjudicated in need of 
449.6   protection or services because the child has committed domestic 
449.7   abuse and been ordered excluded from the child's parent's home, 
449.8   the court shall dismiss jurisdiction if the court, at any time, 
449.9   finds the parent is able or willing to provide an alternative 
449.10  safe living arrangement for the child, as defined in Laws 1997, 
449.11  chapter 239, article 10, section 2.  
449.12     Sec. 21.  [299A.76] [SUICIDE STATISTICS.] 
449.13     (a) The commissioner of public safety shall not: 
449.14     (1) include any statistics on committing suicide or 
449.15  attempting suicide in any compilation of crime statistics 
449.16  published by the commissioner; or 
449.17     (2) label as a crime statistic, any data on committing 
449.18  suicide or attempting suicide. 
449.19     (b) This section does not apply to the crimes of aiding 
449.20  suicide under section 609.215, subdivision 1, or aiding 
449.21  attempted suicide under section 609.215, subdivision 2, or to 
449.22  statistics directly related to the commission of a crime. 
449.23     Sec. 22.  [NOTICE REGARDING ESTABLISHMENT OF CONTINUING 
449.24  CARE BENEFIT PROGRAM.] 
449.25     When the continuing care benefit program for persons with 
449.26  mental illness under Minnesota Statutes, section 256.9693 is 
449.27  established, the commissioner of human services shall notify 
449.28  counties, health plan companies with prepaid medical assistance 
449.29  contracts, health care providers, and enrollees of the benefit 
449.30  program through bulletins, workshops, and other meetings. 
449.31     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
449.32     Sec. 23.  [STUDY; LENGTH OF STAY FOR MEDICARE-ELIGIBLE 
449.33  PERSONS.] 
449.34     The commissioner of human services shall study and make 
449.35  recommendations on how Medicare-eligible persons with mental 
449.36  illness may obtain acute care hospital inpatient treatment for 
450.1   mental illness for a length of stay beyond that allowed by the 
450.2   diagnostic classifications for mental illness according to 
450.3   Minnesota Statutes, section 256.969, subdivision 3a.  The study 
450.4   and recommendations shall be reported to the legislature by 
450.5   January 15, 2002. 
450.6      Sec. 24.  [DEVELOPMENT OF PAYMENT SYSTEM FOR ADULT 
450.7   RESIDENTIAL SERVICES GRANTS.] 
450.8      The commissioner of human services shall review funding 
450.9   methods for adult residential services grants under Minnesota 
450.10  Rules, parts 9535.2000 to 9535.3000, and shall develop a payment 
450.11  system that takes into account client difficulty of care as 
450.12  manifested by client physical, mental, or behavioral 
450.13  conditions.  The payment system must provide reimbursement for 
450.14  education, consultation, and support services provided to 
450.15  families and other individuals as an extension of the treatment 
450.16  process.  The commissioner shall present recommendations and 
450.17  draft legislation for an adult residential services payment 
450.18  system to the legislature by January 15, 2002.  The 
450.19  recommendations must address whether additional funding for 
450.20  adult residential services grants is necessary for the provision 
450.21  of high quality services under a payment reimbursement system. 
450.22                             ARTICLE 10 
450.23                        ASSISTANCE PROGRAMS 
450.24     Section 1.  Minnesota Statutes 2000, section 256.01, 
450.25  subdivision 18, is amended to read: 
450.26     Subd. 18.  [IMMIGRATION STATUS VERIFICATIONS.] (a) 
450.27  Notwithstanding any waiver of this requirement by the secretary 
450.28  of the United States Department of Health and Human Services, 
450.29  effective July 1, 2001, the commissioner shall utilize the 
450.30  Systematic Alien Verification for Entitlements (SAVE) program to 
450.31  conduct immigration status verifications: 
450.32     (1) as required under United States Code, title 8, section 
450.33  1642; 
450.34     (2) for all applicants for food assistance benefits, 
450.35  whether under the federal food stamp program, the MFIP or work 
450.36  first program, or the Minnesota food assistance program; 
451.1      (3) for all applicants for general assistance medical care, 
451.2   except assistance for an emergency medical condition, for 
451.3   immunization with respect to an immunizable disease, or for 
451.4   testing and treatment of symptoms of a communicable disease; and 
451.5      (4) for all applicants for general assistance, Minnesota 
451.6   supplemental aid, MinnesotaCare, or group residential housing, 
451.7   when the benefits provided by these programs would fall under 
451.8   the definition of "federal public benefit" under United States 
451.9   Code, title 8, section 1642, if federal funds were used to pay 
451.10  for all or part of the benefits.  
451.11     The commissioner shall report to the Immigration and 
451.12  Naturalization Service all undocumented persons who have been 
451.13  identified through application verification procedures or by the 
451.14  self-admission of an applicant for assistance.  Reports made 
451.15  under this subdivision must comply with the requirements of 
451.16  section 411A of the Social Security Act, as amended, and United 
451.17  States Code, title 8, section 1644. 
451.18     (b) The commissioner shall comply with the reporting 
451.19  requirements under United States Code, title 42, section 611a, 
451.20  and any federal regulation or guidance adopted under that law. 
451.21     Sec. 2.  Minnesota Statutes 2000, section 256D.053, 
451.22  subdivision 1, is amended to read: 
451.23     Subdivision 1.  [PROGRAM ESTABLISHED.] The Minnesota food 
451.24  assistance program is established to provide food assistance to 
451.25  legal noncitizens residing in this state who are ineligible to 
451.26  participate in the federal Food Stamp Program solely due to the 
451.27  provisions of section 402 or 403 of Public Law Number 104-193, 
451.28  as authorized by Title VII of the 1997 Emergency Supplemental 
451.29  Appropriations Act, Public Law Number 105-18, and as amended by 
451.30  Public Law Number 105-185. 
451.31     Beginning July 1, 2002 2003, the Minnesota food assistance 
451.32  program is limited to those noncitizens described in this 
451.33  subdivision who are 50 years of age or older. 
451.34     Sec. 3.  [256J.021] [SEPARATE STATE PROGRAM FOR USE OF 
451.35  STATE MONEY.] 
451.36     Beginning October 1, 2001, and each year thereafter, the 
452.1   commissioner of human services must treat financial assistance 
452.2   expenditures made to or on behalf of any minor child under 
452.3   section 256J.02, subdivision 2, clause (1), who is a resident of 
452.4   this state under section 256J.12, and who is part of a 
452.5   two-parent eligible household as expenditures under a separately 
452.6   funded state program and report those expenditures to the 
452.7   federal Department of Health and Human Services as separate 
452.8   state program expenditures under Code of Federal Regulations, 
452.9   title 45, section 263.5. 
452.10     Sec. 4.  Minnesota Statutes 2000, section 256J.09, 
452.11  subdivision 1, is amended to read: 
452.12     Subdivision 1.  [WHERE TO APPLY.] To apply for assistance a 
452.13  person must apply for assistance at submit a signed application 
452.14  to the county agency in the county where that person lives. 
452.15     Sec. 5.  Minnesota Statutes 2000, section 256J.09, 
452.16  subdivision 2, is amended to read: 
452.17     Subd. 2.  [COUNTY AGENCY RESPONSIBILITY TO PROVIDE 
452.18  INFORMATION.] When a person inquires about assistance, a county 
452.19  agency must inform a person who inquires about assistance about: 
452.20     (1) explain the eligibility requirements for assistance of, 
452.21  and how to apply for, diversionary assistance, including 
452.22  diversionary assistance and as provided in section 256J.47; 
452.23  emergency assistance. as provided in section 256J.48; MFIP as 
452.24  provided in section 256J.10; or any other assistance for which 
452.25  the person may be eligible; and 
452.26     A county agency must (2) offer the person brochures 
452.27  developed or approved by the commissioner that describe how to 
452.28  apply for assistance. 
452.29     Sec. 6.  Minnesota Statutes 2000, section 256J.09, 
452.30  subdivision 3, is amended to read: 
452.31     Subd. 3.  [SUBMITTING THE APPLICATION FORM.] (a) A county 
452.32  agency must offer, in person or by mail, the application forms 
452.33  prescribed by the commissioner as soon as a person makes a 
452.34  written or oral inquiry.  At that time, the county agency must: 
452.35     (1) inform the person that assistance begins with the date 
452.36  the signed application is received by the county agency or the 
453.1   date all eligibility criteria are met, whichever is later.  The 
453.2   county agency must; 
453.3      (2) inform the applicant person that any delay in 
453.4   submitting the application will reduce the amount of assistance 
453.5   paid for the month of application.  A county agency must; 
453.6      (3) inform a person that the person may submit the 
453.7   application before an interview appointment.  To apply for 
453.8   assistance, a person must submit a signed application to the 
453.9   county agency.; 
453.10     (4) explain the information that will be verified during 
453.11  the application process by the county agency as provided in 
453.12  section 256J.32; 
453.13     (5) inform a person about the county agency's average 
453.14  application processing time and explain how the application will 
453.15  be processed under subdivision 5; 
453.16     (6) explain how to contact the county agency if a person's 
453.17  application information changes and how to withdraw the 
453.18  application; 
453.19     (7) inform a person that the next step in the application 
453.20  process is an interview and what a person must do if the 
453.21  application is approved including, but not limited to, attending 
453.22  orientation under section 256J.45 and complying with employment 
453.23  and training services requirements in sections 256J.52 to 
453.24  256J.55; 
453.25     (8) explain the child care and transportation services that 
453.26  are available under paragraph (c) to enable caregivers to attend 
453.27  the interview, screening, and orientation; and 
453.28     (9) identify any language barriers and arrange for 
453.29  translation assistance during appointments, including, but not 
453.30  limited to, screening under subdivision 3a, orientation under 
453.31  section 256J.45, and the initial assessment under section 
453.32  256J.52.  
453.33     (b) Upon receipt of a signed application, the county agency 
453.34  must stamp the date of receipt on the face of the application.  
453.35  The county agency must process the application within the time 
453.36  period required under subdivision 5.  An applicant may withdraw 
454.1   the application at any time by giving written or oral notice to 
454.2   the county agency.  The county agency must issue a written 
454.3   notice confirming the withdrawal.  The notice must inform the 
454.4   applicant of the county agency's understanding that the 
454.5   applicant has withdrawn the application and no longer wants to 
454.6   pursue it.  When, within ten days of the date of the agency's 
454.7   notice, an applicant informs a county agency, in writing, that 
454.8   the applicant does not wish to withdraw the application, the 
454.9   county agency must reinstate the application and finish 
454.10  processing the application. 
454.11     (c) Upon a participant's request, the county agency must 
454.12  arrange for transportation and child care or reimburse the 
454.13  participant for transportation and child care expenses necessary 
454.14  to enable participants to attend the screening under subdivision 
454.15  3a and orientation under section 256J.45.  
454.16     Sec. 7.  Minnesota Statutes 2000, section 256J.09, is 
454.17  amended by adding a subdivision to read: 
454.18     Subd. 3a.  [SCREENING.] The county agency, or at county 
454.19  option, the county's employment and training service provider as 
454.20  defined in section 256J.49, must screen each applicant to 
454.21  determine immediate needs and to determine if the applicant may 
454.22  be eligible for: 
454.23     (1) another program that is not partially funded through 
454.24  the federal temporary assistance to needy families block grant 
454.25  under Title I of Public Law Number 104-193, including the 
454.26  expedited issuance of food stamps under section 256J.28, 
454.27  subdivision 1.  If the applicant may be eligible for another 
454.28  program, a county caseworker must provide the appropriate 
454.29  referral to the program; 
454.30     (2) the diversionary assistance program under section 
454.31  256J.47; or 
454.32     (3) the emergency assistance program under section 256J.48. 
454.33     Sec. 8.  Minnesota Statutes 2000, section 256J.09, is 
454.34  amended by adding a subdivision to read: 
454.35     Subd. 3b.  [INTERVIEW TO DETERMINE REFERRALS AND SERVICES.] 
454.36  If the applicant is not diverted from applying for MFIP, and if 
455.1   the applicant meets the MFIP eligibility requirements, then a 
455.2   county agency must: 
455.3      (1) identify an applicant who is under the age of 20 and 
455.4   explain to the applicant the assessment procedures and 
455.5   employment plan requirements for minor parents under section 
455.6   256J.54; 
455.7      (2) explain to the applicant the eligibility criteria for 
455.8   an exemption under the family violence provisions in section 
455.9   256J.52, subdivision 6, and explain what an applicant should do 
455.10  to develop an alternative employment plan; 
455.11     (3) determine if an applicant qualifies for an exemption 
455.12  under section 256J.56 from employment and training services 
455.13  requirements, explain how a person should report to the county 
455.14  agency any status changes, and explain that an applicant who is 
455.15  exempt may volunteer to participate in employment and training 
455.16  services; 
455.17     (4) for applicants who are not exempt from the requirement 
455.18  to attend orientation, arrange for an orientation under section 
455.19  256J.45 and an initial assessment under section 256J.52; 
455.20     (5) inform an applicant who is not exempt from the 
455.21  requirement to attend orientation that failure to attend the 
455.22  orientation is considered an occurrence of noncompliance with 
455.23  program requirements and will result in an imposition of a 
455.24  sanction under section 256J.46; and 
455.25     (6) explain how to contact the county agency if an 
455.26  applicant has questions about compliance with program 
455.27  requirements. 
455.28     Sec. 9.  Minnesota Statutes 2000, section 256J.15, is 
455.29  amended by adding a subdivision to read: 
455.30     Subd. 3.  [ELIGIBILITY AFTER DISQUALIFICATION DUE TO 
455.31  NONCOMPLIANCE.] (a) An applicant who is a member of an 
455.32  assistance unit that was disqualified from receiving MFIP under 
455.33  section 256J.46, subdivision 1, paragraph (d), clause (3), and 
455.34  who applies for MFIP assistance within six months of the date of 
455.35  the disqualification is considered to be a new applicant for 
455.36  purposes of the property limitations under section 256J.20 and, 
456.1   at county option, the payment of assistance provisions under 
456.2   section 256J.24, subdivision 8.  The county agency must also use 
456.3   the initial income test under section 256J.21, subdivision 3, in 
456.4   determining the applicant's eligibility for assistance. 
456.5      (b) Notwithstanding section 256J.24, subdivisions 5 to 7 
456.6   and 9, for an applicant who is eligible for MFIP under this 
456.7   subdivision, the residual amount of the grant, after making any 
456.8   applicable vendor payments for shelter and utility costs, if 
456.9   any, must be reduced by ten percent of the applicable MFIP 
456.10  standard of need for an assistance unit of the same size for 
456.11  each of the first six months on MFIP before the residual amount 
456.12  of the grant is paid to the assistance unit. 
456.13     (c) A participant who is disqualified from MFIP a second or 
456.14  subsequent time and who is eligible for MFIP under this 
456.15  subdivision is considered to have a third occurrence of 
456.16  noncompliance and must be sanctioned under section 256J.46, 
456.17  subdivision 1, paragraph (d), clause (2), for the first six 
456.18  months on MFIP under this subdivision. 
456.19     Sec. 10.  Minnesota Statutes 2000, section 256J.24, 
456.20  subdivision 10, is amended to read: 
456.21     Subd. 10.  [MFIP EXIT LEVEL.] (a) In state fiscal years 
456.22  2000 and 2001, The commissioner shall adjust the MFIP earned 
456.23  income disregard to ensure that most participants do not lose 
456.24  eligibility for MFIP until their income reaches at least 120 
456.25  percent of the federal poverty guidelines in effect in October 
456.26  of each fiscal year.  The adjustment to the disregard shall be 
456.27  based on a household size of three, and the resulting earned 
456.28  income disregard percentage must be applied to all household 
456.29  sizes.  The adjustment under this subdivision must be 
456.30  implemented at the same time as the October food stamp 
456.31  cost-of-living adjustment is reflected in the food portion of 
456.32  MFIP transitional standard as required under subdivision 5a. 
456.33     (b) In state fiscal year 2002 and thereafter, the earned 
456.34  income disregard percentage must be the same as the percentage 
456.35  implemented in October 2000. 
456.36     Sec. 11.  Minnesota Statutes 2000, section 256J.26, 
457.1   subdivision 1, is amended to read: 
457.2      Subdivision 1.  [PERSON CONVICTED OF DRUG OFFENSES.] (a) 
457.3   Applicants or participants who have been convicted of a drug 
457.4   offense committed after July 1, 1997, may, if otherwise 
457.5   eligible, receive MFIP benefits subject to the following 
457.6   conditions: 
457.7      (1) Benefits for the entire assistance unit must be paid in 
457.8   vendor form for shelter and utilities during any time the 
457.9   applicant is part of the assistance unit. 
457.10     (2) The convicted applicant or participant shall be subject 
457.11  to random drug testing as a condition of continued eligibility 
457.12  and following any positive test for an illegal controlled 
457.13  substance is subject to the following sanctions: 
457.14     (i) for failing a drug test the first time, the 
457.15  participant's grant shall be reduced by ten percent of the MFIP 
457.16  standard of need, prior to making vendor payments for shelter 
457.17  and utility costs; or 
457.18     (ii) for failing a drug test two or more times, the 
457.19  residual amount of the participant's grant after making vendor 
457.20  payments for shelter and utility costs, if any, must be reduced 
457.21  by an amount equal to 30 percent of the MFIP standard of 
457.22  need for an assistance unit of the same size.  When a sanction 
457.23  under this subdivision is in effect, the job counselor must 
457.24  attempt to meet with the person face-to-face.  During the 
457.25  face-to-face meeting, the job counselor must explain the 
457.26  consequences of a subsequent drug test failure and inform the 
457.27  participant of the right to appeal the sanction under section 
457.28  256J.40.  If a face-to-face meeting is not possible, the county 
457.29  agency must send the participant a notice of adverse action as 
457.30  provided in section 256J.31, subdivisions 4 and 5, and must 
457.31  include the information required in the face-to-face meeting; or 
457.32     (ii) for failing a drug test two times, the participant is 
457.33  permanently disqualified from receiving MFIP assistance, both 
457.34  the cash and food portions.  The assistance unit's MFIP grant 
457.35  must be reduced by the amount which would have otherwise been 
457.36  made available to the disqualified participant.  
458.1   Disqualification under this item does not make a participant 
458.2   ineligible for food stamps.  Before a disqualification under 
458.3   this provision is imposed, the job counselor must attempt to 
458.4   meet with the participant face-to-face.  During the face-to-face 
458.5   meeting, the job counselor must identify other resources that 
458.6   may be available to the participant to meet the needs of the 
458.7   family and inform the participant of the right to appeal the 
458.8   disqualification under section 256J.40.  If a face-to-face 
458.9   meeting is not possible, the county agency must send the 
458.10  participant a notice of adverse action as provided in section 
458.11  256J.31, subdivisions 4 and 5, and must include the information 
458.12  required in the face-to-face meeting. 
458.13     (3) A participant who fails an initial a drug test the 
458.14  first time and is under a sanction due to other MFIP program 
458.15  requirements is considered to have more than one occurrence of 
458.16  noncompliance and is subject to the applicable level of sanction 
458.17  in clause (2)(ii) as specified under section 256J.46, 
458.18  subdivision 1, paragraph (d). 
458.19     (b) Applicants requesting only food stamps or participants 
458.20  receiving only food stamps, who have been convicted of a drug 
458.21  offense that occurred after July 1, 1997, may, if otherwise 
458.22  eligible, receive food stamps if the convicted applicant or 
458.23  participant is subject to random drug testing as a condition of 
458.24  continued eligibility.  Following a positive test for an illegal 
458.25  controlled substance, the applicant is subject to the following 
458.26  sanctions: 
458.27     (1) for failing a drug test the first time, food stamps 
458.28  shall be reduced by ten percent of the applicable food stamp 
458.29  allotment; and 
458.30     (2) for failing a drug test two or more times, food stamps 
458.31  shall be reduced by an amount equal to 30 percent of the 
458.32  applicable food stamp allotment.  When a sanction under this 
458.33  clause is in effect, a job counselor must attempt to meet with 
458.34  the person face-to-face.  During the face-to-face meeting, a job 
458.35  counselor must explain the consequences of a subsequent drug 
458.36  test failure and inform the participant of the right to appeal 
459.1   the sanction under section 256J.40.  If a face-to-face meeting 
459.2   is not possible, a county agency must send the participant a 
459.3   notice of adverse action as provided in section 256J.31, 
459.4   subdivisions 4 and 5, and must include the information required 
459.5   in the face-to-face meeting; and 
459.6      (2) for failing a drug test two times, the participant is 
459.7   permanently disqualified from receiving food stamps.  Before a 
459.8   disqualification under this provision is imposed, a job 
459.9   counselor must attempt to meet with the participant 
459.10  face-to-face.  During the face-to-face meeting, the job 
459.11  counselor must identify other resources that may be available to 
459.12  the participant to meet the needs of the family and inform the 
459.13  participant of the right to appeal the disqualification under 
459.14  section 256J.40.  If a face-to-face meeting is not possible, a 
459.15  county agency must send the participant a notice of adverse 
459.16  action as provided in section 256J.31, subdivisions 4 and 5, and 
459.17  must include the information required in the face-to-face 
459.18  meeting. 
459.19     (c) For the purposes of this subdivision, "drug offense" 
459.20  means an offense that occurred after July 1, 1997, of sections 
459.21  152.021 to 152.025, 152.0261, or 152.096.  Drug offense also 
459.22  means a conviction in another jurisdiction of the possession, 
459.23  use, or distribution of a controlled substance, or conspiracy to 
459.24  commit any of these offenses, if the offense occurred after July 
459.25  1, 1997, and the conviction is a felony offense in that 
459.26  jurisdiction, or in the case of New Jersey, a high misdemeanor. 
459.27     Sec. 12.  Minnesota Statutes 2000, section 256J.31, 
459.28  subdivision 4, is amended to read: 
459.29     Subd. 4.  [PARTICIPANT'S RIGHT TO NOTICE.] A county agency 
459.30  must give a participant written notice of all adverse actions 
459.31  affecting the participant including payment reductions, 
459.32  suspensions, terminations, and use of protective, vendor, or 
459.33  two-party payments.  The notice of adverse action must be on a 
459.34  form prescribed or approved by the commissioner, must be 
459.35  understandable at a seventh grade reading level, and must be 
459.36  mailed to the last known mailing address provided by the 
460.1   participant.  A notice written in English must include the 
460.2   department of human services language block and must be sent to 
460.3   every applicable participant.  The county agency must state on 
460.4   the notice of adverse action the action it intends to take, the 
460.5   reasons for the action, the participant's right to appeal the 
460.6   action, the conditions under which assistance can be continued 
460.7   pending an appeal decision, and the related consequences of the 
460.8   action. 
460.9      Sec. 13.  Minnesota Statutes 2000, section 256J.32, 
460.10  subdivision 7a, is amended to read: 
460.11     Subd. 7a.  [REQUIREMENT TO REPORT TO IMMIGRATION AND 
460.12  NATURALIZATION SERVICES.] Notwithstanding subdivision 7, 
460.13  effective July 1, 2001, the commissioner shall report to the 
460.14  Immigration and Naturalization Services all undocumented persons 
460.15  who have been identified through application verification 
460.16  procedures or by the self-admission of an applicant for 
460.17  assistance.  Reports made under this subdivision must comply 
460.18  with the requirements of section 411A of the Social Security 
460.19  Act, as amended, and United States Code, title 8, section 1644.  
460.20  The commissioner shall comply with the reporting requirements 
460.21  under United States Code, title 42, section 611a, and any 
460.22  federal regulation or guidance adopted under that law. 
460.23     Sec. 14.  Minnesota Statutes 2000, section 256J.42, is 
460.24  amended by adding a subdivision to read: 
460.25     Subd. 6.  [CASE REVIEW.] (a) Within 180 days before the end 
460.26  of the participant's 60th month on MFIP, the county agency or 
460.27  job counselor must review the participant's case to determine if 
460.28  the employment plan is still appropriate, or if the participant 
460.29  is exempt under section 256J.56 from the employment and training 
460.30  services component, and attempt to meet with the participant 
460.31  face-to-face. 
460.32     (b) During the face-to-face meeting, a county agency or the 
460.33  job counselor must: 
460.34     (1) inform the participant how many months of counted 
460.35  assistance the participant has accrued and when the participant 
460.36  is expected to reach the 60th month; 
461.1      (2) explain the hardship extension criteria under section 
461.2   256J.425 and what the participant should do if the participant 
461.3   thinks a hardship extension applies; 
461.4      (3) identify other resources that may be available to the 
461.5   participant to meet the needs of the family; and 
461.6      (4) inform the participant of the right to appeal the case 
461.7   closure under section 256J.40. 
461.8      (c) If a face-to-face meeting is not possible, the county 
461.9   agency must send the participant a notice of adverse action as 
461.10  provided in section 256J.31, subdivisions 4 and 5. 
461.11     (d) Before a participant's case is closed under this 
461.12  section, the county must ensure that: 
461.13     (1) the case has been reviewed by the job counselor's 
461.14  supervisor or the review team designated in the county's 
461.15  approved local service unit plan to determine if the criteria 
461.16  for a hardship extension, if requested, were applied 
461.17  appropriately; and 
461.18     (2) the county agency or the job counselor attempted to 
461.19  meet with the participant face-to-face. 
461.20     Sec. 15.  [256J.425] [HARDSHIP EXTENSIONS.] 
461.21     Subdivision 1.  [ELIGIBILITY.] An assistance unit subject 
461.22  to the time limit under section 256J.42, subdivision 1, in which 
461.23  any participant has received 60 counted months of assistance is 
461.24  not eligible to receive months of assistance beyond the first 60 
461.25  months under a hardship extension, if the participant is not in 
461.26  compliance.  If there is more than one participant in the 
461.27  household, each participant must be in compliance to be eligible 
461.28  for a hardship extension.  For purposes of determining 
461.29  eligibility for a hardship extension, a participant is in 
461.30  compliance in any month that the participant has not been 
461.31  sanctioned under section 256J.46, subdivision 1, or under 
461.32  256J.26, subdivision 1. 
461.33     Subd. 2.  [ILL OR INCAPACITATED PARTICIPANTS; DEPENDENT 
461.34  HOUSEHOLD MEMBER.] (a) An assistance unit subject to the time 
461.35  limit in section 256J.42, subdivision 1, in which any 
461.36  participant has received 60 counted months of assistance, is 
462.1   eligible to receive months of assistance under a hardship 
462.2   extension if the participant belongs to any of the following 
462.3   groups: 
462.4      (1) participants who are suffering from a professionally 
462.5   certified illness, injury, or incapacity which is expected to 
462.6   continue for more than 30 days and which prevents the person 
462.7   from obtaining or retaining employment and who are following the 
462.8   treatment recommendations of the health care provider certifying 
462.9   the illness, injury, or incapacity; 
462.10     (2) participants whose presence in the home is required 
462.11  because of the professionally certified illness or incapacity of 
462.12  another member in the assistance unit, a relative in the 
462.13  household, or a foster child in the household and the illness or 
462.14  incapacity is expected to continue for more than 30 days; or 
462.15     (3) caregivers with a child or an adult in the household 
462.16  who meets the disability or medical criteria for home care 
462.17  services under section 256B.0627, subdivision 1, paragraph (c), 
462.18  or a home and community-based waiver services program under 
462.19  chapter 256B, or meets the criteria for severe emotional 
462.20  disturbance under section 245.4871, subdivision 6, or for 
462.21  serious and persistent mental illness under section 245.462, 
462.22  subdivision 20, paragraph (c).  Caregivers in this category are 
462.23  presumed to be prevented from obtaining or retaining employment. 
462.24     (b) An assistance unit receiving assistance under a 
462.25  hardship extension under this subdivision may continue to 
462.26  receive assistance under MFIP as long as the participant meets 
462.27  the criteria in paragraph (a), clause (1), (2), or (3).  A 
462.28  county agency or job counselor must, on a quarterly basis, 
462.29  review the case file of an assistance unit receiving assistance 
462.30  under this subdivision to determine if the participant still 
462.31  meets the criteria in paragraph (a), clause (1), (2), or (3). 
462.32     Subd. 3.  [CERTAIN HARD-TO-EMPLOY PARTICIPANTS.] (a) An 
462.33  assistance unit subject to the time limit in section 256J.42, 
462.34  subdivision 1, in which any participant has received 60 counted 
462.35  months of assistance, is eligible to receive months of 
462.36  assistance under a hardship extension if the participant belongs 
463.1   to any of the following groups: 
463.2      (1) a person who is diagnosed by a licensed physician, 
463.3   psychological practitioner, or other qualified professional, as 
463.4   mentally retarded or mentally ill, and that condition prevents 
463.5   the person from obtaining or retaining employment; 
463.6      (2) a person who has been assessed by a vocational 
463.7   specialist, job counselor, or the county agency to be 
463.8   unemployable for purposes of this subdivision; a person is 
463.9   considered employable if positions of employment in the local 
463.10  labor market exist, regardless of the current availability of 
463.11  openings for those positions, that the person is capable of 
463.12  performing.  The person's eligibility under this category must 
463.13  be reassessed at least annually; or 
463.14     (3) a person who is determined by the county agency, 
463.15  according to Minnesota Rules, part 9500.1251, subpart 2, item I, 
463.16  to be learning disabled, provided that if a rehabilitation plan 
463.17  for the person is developed or approved by the county agency, 
463.18  the person is following the plan.  A rehabilitation plan does 
463.19  not replace the requirement to develop and comply with an 
463.20  employment plan under section 256J.52. 
463.21     (b) An assistance unit receiving assistance under a 
463.22  hardship extension under this subdivision may continue to 
463.23  receive assistance under MFIP as long as the participant meets 
463.24  the criteria in paragraph (a), clause (1), (2), or (3), and all 
463.25  participants in the assistance unit remain in compliance with, 
463.26  or are exempt from, the employment and training services 
463.27  requirements in sections 256J.52 to 256J.55. 
463.28     Subd. 4.  [VICTIMS OF FAMILY VIOLENCE.] A participant who 
463.29  received TANF assistance that counted towards the federal 
463.30  60-month time limit while the participant complied with a safety 
463.31  plan or, after October 1, 2001, an alternative employment plan 
463.32  under the MFIP employment and training component is eligible for 
463.33  assistance under a hardship extension for a period of time equal 
463.34  to the number of months that were counted toward the federal 
463.35  60-month time limit while the participant complied with a safety 
463.36  plan or, after October 1, 2001, an alternative employment plan 
464.1   under the MFIP employment and training component. 
464.2      Subd. 5.  [ACCRUAL OF CERTAIN EXEMPT MONTHS.] (a) A 
464.3   participant who received TANF assistance that counted towards 
464.4   the federal 60-month time limit while the participant was or 
464.5   would have been exempt under section 256J.56, paragraph (a), 
464.6   clause (7), from employment and training services requirements 
464.7   and who is no longer eligible for assistance under a hardship 
464.8   extension under subdivision 2, paragraph (a), clause (3), is 
464.9   eligible for assistance under a hardship extension for a period 
464.10  of time equal to the number of months that were counted toward 
464.11  the federal 60-month time limit while the participant was or 
464.12  would have been exempt under section 256J.56, paragraph (a), 
464.13  clause (7), from the employment and training services 
464.14  requirements. 
464.15     (b) A participant who received TANF assistance that counted 
464.16  towards the federal 60-month time limit while the participant 
464.17  met the state time limit exemption criteria under section 
464.18  256J.42, subdivision 5, is eligible for assistance under a 
464.19  hardship extension for a period of time equal to the number of 
464.20  months that were counted toward the federal 60-month time limit 
464.21  while the participant met the state time limit exemption 
464.22  criteria under section 256J.42, subdivision 5. 
464.23     Sec. 16.  Minnesota Statutes 2000, section 256J.45, 
464.24  subdivision 1, is amended to read: 
464.25     Subdivision 1.  [COUNTY AGENCY TO PROVIDE ORIENTATION.] A 
464.26  county agency must provide a face-to-face orientation to each 
464.27  MFIP caregiver who is not exempt under section 256J.56, 
464.28  paragraph (a), clause (6) or (8), with a face-to-face 
464.29  orientation unless the caregiver is: 
464.30     (1) a single parent, or one parent in a two-parent family, 
464.31  employed at least 35 hours per week; or 
464.32     (2) a second parent in a two-parent family who is employed 
464.33  for 20 or more hours per week provided the first parent is 
464.34  employed at least 35 hours per week. 
464.35  The county agency must inform caregivers who are not exempt 
464.36  under section 256J.56, paragraph (a), clause (6) or (8), clause 
465.1   (1) or (2) that failure to attend the orientation is considered 
465.2   an occurrence of noncompliance with program requirements, and 
465.3   will result in the imposition of a sanction under section 
465.4   256J.46.  If the client complies with the orientation 
465.5   requirement prior to the first day of the month in which the 
465.6   grant reduction is proposed to occur, the orientation sanction 
465.7   shall be lifted. 
465.8      Sec. 17.  Minnesota Statutes 2000, section 256J.46, 
465.9   subdivision 1, is amended to read: 
465.10     Subdivision 1.  [SANCTIONS FOR PARTICIPANTS NOT COMPLYING 
465.11  WITH PROGRAM REQUIREMENTS.] (a) A participant who fails without 
465.12  good cause to comply with the requirements of this chapter, and 
465.13  who is not subject to a sanction under subdivision 2, shall be 
465.14  subject to a sanction as provided in this subdivision.  Prior to 
465.15  the imposition of a sanction, a county agency shall provide a 
465.16  notice of intent to sanction under section 256J.57, subdivision 
465.17  2, and, when applicable, a notice of adverse action as provided 
465.18  in section 256J.31. 
465.19     (b) A participant who fails to comply with an alternative 
465.20  employment plan must have the plan reviewed by a person trained 
465.21  in domestic violence and a job counselor to determine if 
465.22  components of the alternative employment plan are still 
465.23  appropriate.  If the activities are no longer appropriate, the 
465.24  plan must be revised with a person trained in domestic violence 
465.25  and approved by a job counselor.  A participant who fails to 
465.26  comply with a plan that is determined not to need revision will 
465.27  lose their exemption and be required to comply with regular 
465.28  employment services activities.  
465.29     (c) A sanction under this subdivision becomes effective the 
465.30  month following the month in which a required notice is given.  
465.31  A sanction must not be imposed when a participant comes into 
465.32  compliance with the requirements for orientation under section 
465.33  256J.45 or third-party liability for medical services under 
465.34  section 256J.30, subdivision 10, prior to the effective date of 
465.35  the sanction.  A sanction must not be imposed when a participant 
465.36  comes into compliance with the requirements for employment and 
466.1   training services under sections 256J.49 to 256J.72 256J.55 ten 
466.2   days prior to the effective date of the sanction.  For purposes 
466.3   of this subdivision, each month that a participant fails to 
466.4   comply with a requirement of this chapter shall be considered a 
466.5   separate occurrence of noncompliance.  A participant who has had 
466.6   one or more sanctions imposed must remain in compliance with the 
466.7   provisions of this chapter for six months in order for a 
466.8   subsequent occurrence of noncompliance to be considered a first 
466.9   occurrence.  
466.10     (b) (d) Sanctions for noncompliance shall be imposed as 
466.11  follows: 
466.12     (1) For the first occurrence of noncompliance by a 
466.13  participant in a single-parent household or by one participant 
466.14  in a two-parent household an assistance unit, the assistance 
466.15  unit's grant shall be reduced by ten percent of the MFIP 
466.16  standard of need for an assistance unit of the same size with 
466.17  the residual grant paid to the participant.  The reduction in 
466.18  the grant amount must be in effect for a minimum of one month 
466.19  and shall be removed in the month following the month that the 
466.20  participant returns to compliance.  
466.21     (2) For a second or subsequent and third occurrence of 
466.22  noncompliance by a participant in an assistance unit, or 
466.23  when both each of the participants in a two-parent household are 
466.24  out of compliance assistance unit have a first occurrence of 
466.25  noncompliance at the same time, the assistance unit's shelter 
466.26  costs shall be vendor paid up to the amount of the cash portion 
466.27  of the MFIP grant for which the participant's assistance unit is 
466.28  eligible.  At county option, the assistance unit's utilities may 
466.29  also be vendor paid up to the amount of the cash portion of the 
466.30  MFIP grant remaining after vendor payment of the assistance 
466.31  unit's shelter costs.  The residual amount of the grant after 
466.32  vendor payment, if any, must be reduced by an amount equal to 30 
466.33  percent of the MFIP standard of need for an assistance unit of 
466.34  the same size before the residual grant is paid to the 
466.35  assistance unit.  The reduction in the grant amount must be in 
466.36  effect for a minimum of one month and shall be removed in the 
467.1   month following the month that a the participant in a one-parent 
467.2   household assistance unit returns to compliance.  In a 
467.3   two-parent household assistance unit, the grant reduction must 
467.4   be in effect for a minimum of one month and shall be removed in 
467.5   the month following the month both participants return to 
467.6   compliance.  The vendor payment of shelter costs and, if 
467.7   applicable, utilities shall be removed six months after the 
467.8   month in which the participant or participants return to 
467.9   compliance.  If an assistance unit is sanctioned under this 
467.10  clause, the participant's case file must be reviewed as required 
467.11  under paragraph (e). 
467.12     (3) For a fourth occurrence of noncompliance, the 
467.13  assistance unit is disqualified from receiving MFIP assistance, 
467.14  both the cash and food portions.  This disqualification must be 
467.15  in effect for a minimum of one full month.  Disqualification 
467.16  under this clause does not make a participant ineligible for 
467.17  food stamps.  Before an assistance unit is disqualified under 
467.18  this clause, the county must ensure that: 
467.19     (i) the case has been reviewed by the job counselor's 
467.20  supervisor or the review team designated in the county's 
467.21  approved local service unit plan to determine if the review 
467.22  required under paragraph (e) has occurred; and 
467.23     (ii) the job counselor attempted to meet with the 
467.24  participant face-to-face. 
467.25     (c) No later than during the second month that (e) When a 
467.26  sanction under paragraph (b) (d), clause (2), is in effect due 
467.27  to noncompliance with employment services, the participant's 
467.28  case file must be reviewed to determine if, the county agency or 
467.29  job counselor must review the participant's case to determine if 
467.30  the employment plan is still appropriate and attempt to meet 
467.31  with the participant face-to-face.  If a face-to-face meeting is 
467.32  not possible, the county agency must send the participant a 
467.33  notice of adverse action as provided in section 256J.31, 
467.34  subdivisions 4 and 5. 
467.35     (1) During the face-to-face meeting, the job counselor must:
467.36     (i) determine whether the continued noncompliance can be 
468.1   explained and mitigated by providing a needed preemployment 
468.2   activity, as defined in section 256J.49, subdivision 13, clause 
468.3   (16), or services under a local intervention grant for 
468.4   self-sufficiency under section 256J.625; 
468.5      (ii) determine whether the participant qualifies for a good 
468.6   cause exception under section 256J.57; or 
468.7      (iii) determine whether the participant qualifies for an 
468.8   exemption under section 256J.56; 
468.9      (iv) determine whether the participant qualifies for an 
468.10  exemption for victims of family violence under section 256J.52, 
468.11  subdivision 6; 
468.12     (v) inform the participant of the participant's sanction 
468.13  status and explain the consequences of continuing noncompliance; 
468.14     (vi) identify other resources that may be available to the 
468.15  participant to meet the needs of the family if the participant 
468.16  is sanctioned and disqualified from MFIP under paragraph (d), 
468.17  clause (3); and 
468.18     (vii) inform the participant of the right to appeal under 
468.19  section 256J.40. 
468.20     (2) If the lack of an identified activity can explain the 
468.21  noncompliance, the county must work with the participant to 
468.22  provide the identified activity, and the county must restore the 
468.23  participant's grant amount to the full amount for which the 
468.24  assistance unit is eligible.  The grant must be restored 
468.25  retroactively to the first day of the month in which the 
468.26  participant was found to lack preemployment activities or to 
468.27  qualify for an exemption or under section 256J.56, a good cause 
468.28  exception under section 256J.57, or an exemption for victims of 
468.29  family violence under section 256J.52, subdivision 6. 
468.30     (3) If the participant is found to qualify for a good cause 
468.31  exception or an exemption, the county must restore the 
468.32  participant's grant to the full amount for which the assistance 
468.33  unit is eligible.  
468.34     <b>[EFFECTIVE DATE.]</b> The family violence provisions in 
468.35  paragraph (e) are effective October 1, 2001, if the alternative 
468.36  employment plan and family violence provisions in section 
469.1   256J.52, subdivision 6, are enacted during the 2001 session. 
469.2      Sec. 18.  Minnesota Statutes 2000, section 256J.46, 
469.3   subdivision 2a, is amended to read: 
469.4      Subd. 2a.  [DUAL SANCTIONS.] (a) Notwithstanding the 
469.5   provisions of subdivisions 1 and 2, for a participant subject to 
469.6   a sanction for refusal to comply with child support requirements 
469.7   under subdivision 2 and subject to a concurrent sanction for 
469.8   refusal to cooperate with other program requirements under 
469.9   subdivision 1, sanctions shall be imposed in the manner 
469.10  prescribed in this subdivision. 
469.11     A participant who has had one or more sanctions imposed 
469.12  under this subdivision must remain in compliance with the 
469.13  provisions of this chapter for six months in order for a 
469.14  subsequent occurrence of noncompliance to be considered a first 
469.15  occurrence.  Any vendor payment of shelter costs or utilities 
469.16  under this subdivision must remain in effect for six months 
469.17  after the month in which the participant is no longer subject to 
469.18  sanction under subdivision 1. 
469.19     (b) If the participant was subject to sanction for: 
469.20     (i) noncompliance under subdivision 1 before being subject 
469.21  to sanction for noncooperation under subdivision 2; or 
469.22     (ii) noncooperation under subdivision 2 before being 
469.23  subject to sanction for noncompliance under subdivision 1; under 
469.24  subdivision 1 or 2 before being subject to sanction under the 
469.25  other of those subdivisions, the participant shall be sanctioned 
469.26  as provided in subdivision 1, paragraph (b) (d), clause 
469.27  clauses (2) and (3), and the requirement that the county conduct 
469.28  a review as specified in subdivision 1, paragraph (c) (e), 
469.29  remains in effect. 
469.30     (c) A participant who first becomes subject to sanction 
469.31  under both subdivisions 1 and 2 in the same month is subject to 
469.32  sanction as follows: 
469.33     (i) in the first month of noncompliance and noncooperation, 
469.34  the participant's grant must be reduced by 25 percent of the 
469.35  applicable MFIP standard of need, with any residual amount paid 
469.36  to the participant; 
470.1      (ii) in the second and subsequent months of noncompliance 
470.2   and noncooperation, the participant shall be sanctioned as 
470.3   provided in subdivision 1, paragraph (b) (d), clause clauses (2) 
470.4   and (3). 
470.5      The requirement that the county conduct a review as 
470.6   specified in subdivision 1, paragraph (c) (e), remains in effect.
470.7      (d) A participant remains subject to sanction under 
470.8   subdivision 2 if the participant: 
470.9      (i) returns to compliance and is no longer subject to 
470.10  sanction under subdivision 1; or 
470.11     (ii) has the sanction under subdivision 1, 
470.12  paragraph (b) (d), removed upon completion of the review under 
470.13  subdivision 1, paragraph (c) (e). 
470.14     A participant remains subject to sanction under subdivision 
470.15  1, paragraph (b) (d), if the participant cooperates and is no 
470.16  longer subject to sanction under subdivision 2. 
470.17     Sec. 19.  Minnesota Statutes 2000, section 256J.46, is 
470.18  amended by adding a subdivision to read: 
470.19     Subd. 3.  [SANCTION STATUS AFTER DISQUALIFICATION.] An 
470.20  applicant who is a member of an assistance unit that was 
470.21  disqualified from receiving MFIP under subdivision 1, paragraph 
470.22  (d), clause (3), who applies for MFIP assistance within six 
470.23  months of the date of the disqualification, and who is 
470.24  determined to be eligible for MFIP assistance, is considered to 
470.25  have a first occurrence of noncompliance.  An applicant who is a 
470.26  member of an assistance unit that was disqualified from MFIP 
470.27  under subdivision 1, paragraph (d), clause (3), a second or 
470.28  subsequent time, who applies for assistance within six months of 
470.29  the date of disqualification, and who is determined to be 
470.30  eligible for MFIP assistance, is considered to have a third 
470.31  occurrence of noncompliance.  The applicant must remain in 
470.32  compliance with the provisions of this chapter for six months in 
470.33  order for a subsequent occurrence of noncompliance to be 
470.34  considered a first occurrence. 
470.35     Sec. 20.  Minnesota Statutes 2000, section 256J.50, 
470.36  subdivision 1, is amended to read: 
471.1      Subdivision 1.  [EMPLOYMENT AND TRAINING SERVICES COMPONENT 
471.2   OF MFIP.] (a) By January 1, 1998, each county must develop and 
471.3   implement an employment and training services component of MFIP 
471.4   which is designed to put participants on the most direct path to 
471.5   unsubsidized employment.  Participation in these services is 
471.6   mandatory for all MFIP caregivers, unless the caregiver is 
471.7   exempt under section 256J.56. 
471.8      (b) A county must provide employment and training services 
471.9   under sections 256J.515 to 256J.74 within 30 days after the 
471.10  caregiver's participation becomes mandatory under subdivision 
471.11  5 or within 30 days of receipt of a request for services from a 
471.12  caregiver who under section 256J.42 is no longer eligible to 
471.13  receive MFIP but whose income is below 120 percent of the 
471.14  federal poverty guidelines for a family of the same size.  The 
471.15  request must be made within 12 months of the date the 
471.16  caregivers' MFIP case was closed. 
471.17     Sec. 21.  Minnesota Statutes 2000, section 256J.50, 
471.18  subdivision 7, is amended to read: 
471.19     Subd. 7.  [LOCAL SERVICE UNIT PLAN.] (a) Each local or 
471.20  county service unit shall prepare and submit a plan as specified 
471.21  in section 268.88. 
471.22     (b) The plan must include a description of how projects 
471.23  funded under the local intervention grants for self-sufficiency 
471.24  in section 256J.625, subdivisions 2 and 3, operate in the local 
471.25  service unit, including: 
471.26     (1) the target populations of hard-to-employ participants 
471.27  and, working participants in need of job retention and wage 
471.28  advancement services, and caregivers who, within the last 12 
471.29  months, have been determined under section 256J.42 to no longer 
471.30  be eligible to receive MFIP and whose income is below 120 
471.31  percent of the federal poverty guidelines for a family of the 
471.32  same size, with a description of how individual participant 
471.33  needs will be met; 
471.34     (2) services that will be provided which may include paid 
471.35  work experience, enhanced mental health services, outreach to 
471.36  sanctioned families and to caregivers who, within the last 12 
472.1   months, have been determined under section 256J.42 to no longer 
472.2   be eligible to receive MFIP but whose income is below 120 
472.3   percent of the federal poverty guidelines for a family of the 
472.4   same size, child care for social services, child care transition 
472.5   year set-aside, homeless and housing advocacy, and 
472.6   transportation; 
472.7      (3) projected expenditures by activity; 
472.8      (4) anticipated program outcomes including the anticipated 
472.9   impact the intervention efforts will have on performance 
472.10  measures under section 256J.751 and on reducing the number of 
472.11  MFIP participants expected to reach their 60-month time limit; 
472.12  and 
472.13     (5) a description of services that are provided or will be 
472.14  provided to MFIP participants affected by chemical dependency, 
472.15  mental health issues, learning disabilities, or family violence. 
472.16     Each plan must demonstrate how the county or tribe is 
472.17  working within its organization and with other organizations in 
472.18  the community to serve hard-to-employ populations, including how 
472.19  organizations in the community were engaged in planning for use 
472.20  of these funds, services other entities will provide under the 
472.21  plan, and whether multicounty or regional strategies are being 
472.22  implemented as part of this plan. 
472.23     (c) Activities and expenditures in the plan must enhance or 
472.24  supplement MFIP activities without supplanting existing 
472.25  activities and expenditures.  However, this paragraph does not 
472.26  require a county to maintain either:  
472.27     (1) its current provision of child care assistance to MFIP 
472.28  families through the expenditure of county resources under 
472.29  chapter 256E for social services child care assistance if funds 
472.30  are appropriated by another law for an MFIP social services 
472.31  child care pool; 
472.32     (2) its current provision of transition-year child care 
472.33  assistance through the expenditure of county resources if funds 
472.34  are appropriated by another law for this purpose; or 
472.35     (3) its current provision of intensive ESL programs through 
472.36  the expenditure of county resources if funds are appropriated by 
473.1   another law for intensive ESL grants. 
473.2      (d) The plan required under this subdivision must be 
473.3   approved before the local or county service unit is eligible to 
473.4   receive funds under section 256J.625, subdivisions 2 and 3. 
473.5      Sec. 22.  Minnesota Statutes 2000, section 256J.56, is 
473.6   amended to read: 
473.7      256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 
473.8   EXEMPTIONS.] 
473.9      (a) An MFIP caregiver participant is exempt from the 
473.10  requirements of sections 256J.52 to 256J.55 if the caregiver 
473.11  participant belongs to any of the following groups: 
473.12     (1) individuals participants who are age 60 or older; 
473.13     (2) individuals participants who are suffering from a 
473.14  professionally certified permanent or temporary illness, injury, 
473.15  or incapacity which is expected to continue for more than 30 
473.16  days and which prevents the person from obtaining or retaining 
473.17  employment.  Persons in this category with a temporary illness, 
473.18  injury, or incapacity must be reevaluated at least quarterly; 
473.19     (3) caregivers participants whose presence in the home is 
473.20  required because of the professionally certified illness or 
473.21  incapacity of another member in the assistance unit, a relative 
473.22  in the household, or a foster child in the household and the 
473.23  illness or incapacity is expected to continue for more than 30 
473.24  days; 
473.25     (4) women who are pregnant, if the pregnancy has resulted 
473.26  in a professionally certified incapacity that prevents the woman 
473.27  from obtaining or retaining employment; 
473.28     (5) caregivers of a child under the age of one year who 
473.29  personally provide full-time care for the child.  This exemption 
473.30  may be used for only 12 months in a lifetime.  In two-parent 
473.31  households, only one parent or other relative may qualify for 
473.32  this exemption; 
473.33     (6) individuals who are single parents, or one parent in a 
473.34  two-parent family, employed at least 35 hours per week; 
473.35     (7) individuals (6) participants experiencing a personal or 
473.36  family crisis that makes them incapable of participating in the 
474.1   program, as determined by the county agency.  If the participant 
474.2   does not agree with the county agency's determination, the 
474.3   participant may seek professional certification, as defined in 
474.4   section 256J.08, that the participant is incapable of 
474.5   participating in the program. 
474.6      Persons in this exemption category must be reevaluated 
474.7   every 60 days; or 
474.8      (8) second parents in two-parent families employed for 20 
474.9   or more hours per week, provided the first parent is employed at 
474.10  least 35 hours per week; or 
474.11     (9) (7) caregivers with a child or an adult in the 
474.12  household who meets the disability or medical criteria for home 
474.13  care services under section 256B.0627, subdivision 1, paragraph 
474.14  (c), or a home and community-based waiver services program under 
474.15  chapter 256B, or meets the criteria for severe emotional 
474.16  disturbance under section 245.4871, subdivision 6, or for 
474.17  serious and persistent mental illness under section 245.462, 
474.18  subdivision 20, paragraph (c).  Caregivers in this exemption 
474.19  category are presumed to be prevented from obtaining or 
474.20  retaining employment. 
474.21     A caregiver who is exempt under clause (5) must enroll in 
474.22  and attend an early childhood and family education class, a 
474.23  parenting class, or some similar activity, if available, during 
474.24  the period of time the caregiver is exempt under this section.  
474.25  Notwithstanding section 256J.46, failure to attend the required 
474.26  activity shall not result in the imposition of a sanction. 
474.27     (b) The county agency must provide employment and training 
474.28  services to MFIP caregivers participants who are exempt under 
474.29  this section, but who volunteer to participate.  Exempt 
474.30  volunteers may request approval for any work activity under 
474.31  section 256J.49, subdivision 13.  The hourly participation 
474.32  requirements for nonexempt caregivers participants under section 
474.33  256J.50, subdivision 5, do not apply to exempt caregivers 
474.34  participants who volunteer to participate. 
474.35     Sec. 23.  Minnesota Statutes 2000, section 256J.57, 
474.36  subdivision 2, is amended to read: 
475.1      Subd. 2.  [NOTICE OF INTENT TO SANCTION.] (a) When a 
475.2   participant fails without good cause to comply with the 
475.3   requirements of sections 256J.52 to 256J.55, the job counselor 
475.4   or the county agency must provide a notice of intent to sanction 
475.5   to the participant specifying the program requirements that were 
475.6   not complied with, informing the participant that the county 
475.7   agency will impose the sanctions specified in section 256J.46, 
475.8   and informing the participant of the opportunity to request a 
475.9   conciliation conference as specified in paragraph (b).  The 
475.10  notice must also state that the participant's continuing 
475.11  noncompliance with the specified requirements will result in 
475.12  additional sanctions under section 256J.46, without the need for 
475.13  additional notices or conciliation conferences under this 
475.14  subdivision.  The notice, written in English, must include the 
475.15  department of human services language block, and must be sent to 
475.16  every applicable participant.  If the participant does not 
475.17  request a conciliation conference within ten calendar days of 
475.18  the mailing of the notice of intent to sanction, the job 
475.19  counselor must notify the county agency that the assistance 
475.20  payment should be reduced.  The county must then send a notice 
475.21  of adverse action to the participant informing the participant 
475.22  of the sanction that will be imposed, the reasons for the 
475.23  sanction, the effective date of the sanction, and the 
475.24  participant's right to have a fair hearing under section 256J.40.
475.25     (b) The participant may request a conciliation conference 
475.26  by sending a written request, by making a telephone request, or 
475.27  by making an in-person request.  The request must be received 
475.28  within ten calendar days of the date the county agency mailed 
475.29  the ten-day notice of intent to sanction.  If a timely request 
475.30  for a conciliation is received, the county agency's service 
475.31  provider must conduct the conference within five days of the 
475.32  request.  The job counselor's supervisor, or a designee of the 
475.33  supervisor, must review the outcome of the conciliation 
475.34  conference.  If the conciliation conference resolves the 
475.35  noncompliance, the job counselor must promptly inform the county 
475.36  agency and request withdrawal of the sanction notice. 
476.1      (c) Upon receiving a sanction notice, the participant may 
476.2   request a fair hearing under section 256J.40, without exercising 
476.3   the option of a conciliation conference.  In such cases, the 
476.4   county agency shall not require the participant to engage in a 
476.5   conciliation conference prior to the fair hearing. 
476.6      (d) If the participant requests a fair hearing or a 
476.7   conciliation conference, sanctions will not be imposed until 
476.8   there is a determination of noncompliance.  Sanctions must be 
476.9   imposed as provided in section 256J.46. 
476.10     Sec. 24.  Minnesota Statutes 2000, section 256J.62, 
476.11  subdivision 9, is amended to read: 
476.12     Subd. 9.  [CONTINUATION OF CERTAIN SERVICES.] At the 
476.13  request of the caregiver participant, the county may continue to 
476.14  provide case management, counseling, or other support services 
476.15  to a participant following the participant's achievement of: 
476.16     (a) who has achieved the employment goal,; or 
476.17     (b) who under section 256J.42 is no longer eligible to 
476.18  receive MFIP. 
476.19     These services may be provided for up to 12 months 
476.20  following termination of the participant's eligibility for MFIP. 
476.21     A county may expend funds for a specific employment and 
476.22  training service for the duration of that service to a 
476.23  participant if the funds are obligated or expended prior to the 
476.24  participant losing MFIP eligibility. 
476.25     Sec. 25.  Minnesota Statutes 2000, section 256J.625, 
476.26  subdivision 1, is amended to read: 
476.27     Subdivision 1.  [ESTABLISHMENT; GUARANTEED MINIMUM 
476.28  ALLOCATION.] (a) The commissioner shall make grants under this 
476.29  subdivision to assist county and tribal TANF programs to more 
476.30  effectively serve hard-to-employ MFIP participants and 
476.31  participants who, within the last 12 months, have been 
476.32  determined under section 256J.42 to no longer be eligible to 
476.33  receive MFIP but whose income is below 120 percent of the 
476.34  federal poverty guidelines for a family of the same size.  Funds 
476.35  appropriated for local intervention grants for self-sufficiency 
476.36  must be allocated first in amounts equal to the guaranteed 
477.1   minimum in paragraph (b), and second according to the provisions 
477.2   of subdivision 2.  Any remaining funds must be allocated 
477.3   according to the formula in subdivision 3.  Counties or tribes 
477.4   must have an approved local service unit plan under section 
477.5   256J.50, subdivision 7, paragraph (b), in order to receive and 
477.6   expend funds under subdivisions 2 and 3.  
477.7      (b) Each county or tribal program shall receive a 
477.8   guaranteed minimum annual allocation of $25,000. 
477.9      Sec. 26.  Minnesota Statutes 2000, section 256J.625, 
477.10  subdivision 2, is amended to read: 
477.11     Subd. 2.  [SET-ASIDE FUNDS.] (a) Of the funds appropriated 
477.12  for grants under this section, after the allocation in 
477.13  subdivision 1, paragraph (b), is made, 20 percent of the 
477.14  remaining funds each year shall be retained by the commissioner 
477.15  and awarded to counties or tribes whose approved plans 
477.16  demonstrate additional need based on their identification of 
477.17  hard-to-employ families and, working participants in need of job 
477.18  retention and wage advancement services, and participants who 
477.19  within the last 12 months, have been determined under section 
477.20  256J.42 to no longer be eligible to receive MFIP but whose 
477.21  income is below 120 percent of the federal poverty guidelines 
477.22  for a family of same size, strong anticipated outcomes for 
477.23  families and an effective plan for monitoring performance, or, 
477.24  use of a multicounty, multi-entity or regional approach to serve 
477.25  hard-to-employ families and, working participants in need of job 
477.26  retention and wage advancement services, and participants who, 
477.27  within the last 12 months, have been determined under section 
477.28  256J.42 to no longer be eligible to receive MFIP but whose 
477.29  income is below 120 percent of the federal poverty guidelines 
477.30  for a family of the same size, who are identified as a target 
477.31  population to be served in the plan submitted under section 
477.32  256J.50, subdivision 7, paragraph (b).  In distributing funds 
477.33  under this paragraph, the commissioner must achieve a geographic 
477.34  balance.  The commissioner may award funds under this paragraph 
477.35  to other public, private, or nonprofit entities to deliver 
477.36  services in a county or region where the entity or entities 
478.1   submit a plan that demonstrates a strong capability to fulfill 
478.2   the terms of the plan and where the plan shows an innovative or 
478.3   multi-entity approach. 
478.4      (b) For fiscal year 2001 only, of the funds available under 
478.5   this subdivision the commissioner must allocate funding in the 
478.6   amounts specified in article 1, section 2, subdivision 7, for an 
478.7   intensive intervention transitional employment training project 
478.8   and for nontraditional career assistance and training programs.  
478.9   These allocations must occur before any set-aside funds are 
478.10  allocated under paragraph (a). 
478.11     Sec. 27.  Minnesota Statutes 2000, section 256J.625, 
478.12  subdivision 4, is amended to read: 
478.13     Subd. 4.  [USE OF FUNDS.] (a) A county or tribal program 
478.14  may use funds allocated under this subdivision to provide 
478.15  services to MFIP participants who are hard-to-employ and their 
478.16  families.  Services provided must be intended to reduce the 
478.17  number of MFIP participants who are expected to reach the 
478.18  60-month time limit under section 256J.42.  Counties, tribes, 
478.19  and other entities receiving funds under subdivision 2 or 3 must 
478.20  submit semiannual progress reports to the commissioner which 
478.21  detail program outcomes. 
478.22     (b) Funds allocated under this section may not be used to 
478.23  provide benefits that are defined as "assistance" in Code of 
478.24  Federal Regulations, title 45, section 260.31, to an assistance 
478.25  unit that is only receiving the food portion of MFIP benefits or 
478.26  under section 256J.42 is no longer eligible to receive MFIP. 
478.27     (c) A county may use funds allocated under this section for 
478.28  that part of the match for federal access to jobs transportation 
478.29  funds that is TANF-eligible.  A county may also use funds 
478.30  allocated under this section to enhance transportation choices 
478.31  for eligible recipients up to 150 percent of the federal poverty 
478.32  guidelines. 
478.33     Sec. 28.  Minnesota Statutes 2000, section 256J.751, is 
478.34  amended to read: 
478.35     256J.751 [COUNTY PERFORMANCE MANAGEMENT.] 
478.36     (a) Subdivision 1.  [QUARTERLY COUNTY CASELOAD REPORT.] The 
479.1   commissioner shall report quarterly to all counties each county 
479.2   on the county's performance on the following measures: 
479.3      (1) percent of MFIP caseload working in paid employment; 
479.4      (2) percent number of MFIP caseload cases receiving only 
479.5   the food portion of assistance; 
479.6      (2) number of child-only cases; 
479.7      (3) number of minor caregivers; 
479.8      (4) number of cases that are exempt from the 60-month time 
479.9   limit by the exemption category under section 256J.42; 
479.10     (5) number of participants who are exempt from employment 
479.11  and training services requirements by the exemption category 
479.12  under section 256J.56; 
479.13     (6) number of assistance units receiving assistance under a 
479.14  hardship extension under section 256J.425; 
479.15     (7) number of participants and number of months spent in 
479.16  each level of sanction under section 256J.46, subdivision 1; 
479.17     (3) (8) number of MFIP cases that have left assistance; 
479.18     (4) (9) federal participation requirements as specified in 
479.19  title 1 of Public Law Number 104-193; and 
479.20     (5) (10) median placement wage rate.; and 
479.21     (b) (11) of each county's total MFIP caseload less the 
479.22  number of cases in clauses (1) to (6): 
479.23     (i) number of one-parent cases; 
479.24     (ii) number of two-parent cases; 
479.25     (iii) percent of one-parent cases that are working more 
479.26  than 20 hours per week; 
479.27     (iv) percent of two-parent cases that are working more than 
479.28  20 hours per week; and 
479.29     (v) percent of cases that have received more than 36 months 
479.30  of assistance. 
479.31     Subd. 2.  [QUARTERLY COMPARISON REPORT.] The commissioner 
479.32  shall report quarterly to all counties on each county's 
479.33  performance on the following measures: 
479.34     (1) percent of MFIP caseload working in paid employment; 
479.35     (2) percent of MFIP caseload receiving only the food 
479.36  portion of assistance; 
480.1      (3) number of MFIP cases that have left assistance; 
480.2      (4) federal participation requirements as specified in 
480.3   Title 1 of Public Law Number 104-193; 
480.4      (5) median placement wage rate; and 
480.5      (6) caseload by months of TANF assistance. 
480.6      Subd. 3.  [ANNUAL REPORT.] The commissioner must report to 
480.7   all counties and to the legislature on each county's annual 
480.8   performance on the measures required under subdivision 1 by 
480.9   racial and ethnic group and, to the extent consistent with state 
480.10  and federal law, must include each county's performance on: 
480.11     (1) the number of out-of-wedlock births and births to teen 
480.12  mothers; and 
480.13     (2) number of cases by racial and ethnic group. 
480.14     The report must be completed by January 1, 2002, and 
480.15  January 1 of each year thereafter and must comply with sections 
480.16  3.195 and 3.197. 
480.17     Subd. 4.  [DEVELOPMENT OF PERFORMANCE MEASURES.] By January 
480.18  1, 2002, the commissioner shall, in consultation with counties, 
480.19  develop measures for county performance in addition to those in 
480.20  paragraph (a) subdivision 1 and 2.  In developing these 
480.21  measures, the commissioner must consider: 
480.22     (1) a measure for MFIP cases that leave assistance due to 
480.23  employment; 
480.24     (2) job retention after participants leave MFIP; and 
480.25     (3) participant's earnings at a follow-up point after the 
480.26  participant has left MFIP; and 
480.27     (4) the appropriateness of services provided to minority 
480.28  groups. 
480.29     (c) Subd. 5.  [FAILURE TO MEET FEDERAL PERFORMANCE 
480.30  STANDARDS.] (a) If sanctions occur for failure to meet the 
480.31  performance standards specified in title 1 of Public Law Number 
480.32  104-193 of the Personal Responsibility and Work Opportunity Act 
480.33  of 1996, the state shall pay 88 percent of the sanction.  The 
480.34  remaining 12 percent of the sanction will be paid by the 
480.35  counties.  The county portion of the sanction will be 
480.36  distributed across all counties in proportion to each county's 
481.1   percentage of the MFIP average monthly caseload during the 
481.2   period for which the sanction was applied. 
481.3      (d) (b) If a county fails to meet the performance standards 
481.4   specified in title 1 of Public Law Number 104-193 of the 
481.5   Personal Responsibility and Work Opportunity Act of 1996 for any 
481.6   year, the commissioner shall work with counties to organize a 
481.7   joint state-county technical assistance team to work with the 
481.8   county.  The commissioner shall coordinate any technical 
481.9   assistance with other departments and agencies including the 
481.10  departments of economic security and children, families, and 
481.11  learning as necessary to achieve the purpose of this paragraph. 
481.12     Sec. 29.  Minnesota Statutes 2000, section 256K.25, 
481.13  subdivision 1, is amended to read: 
481.14     Subdivision 1.  [ESTABLISHMENT AND PURPOSE.] (a) The 
481.15  commissioner shall establish a supportive housing and managed 
481.16  care pilot project in two counties, one within the seven-county 
481.17  metropolitan area and one outside of that area, to determine 
481.18  whether the integrated delivery of employment services, 
481.19  supportive services, housing, and health care into a single, 
481.20  flexible program will: 
481.21     (1) reduce public expenditures on homeless families with 
481.22  minor children, homeless noncustodial parents, and other 
481.23  homeless individuals; 
481.24     (2) increase the employment rates of these persons; and 
481.25     (3) provide a new alternative to providing services to this 
481.26  hard-to-serve population. 
481.27     (b) The commissioner shall create a program for counties 
481.28  for the purpose of providing integrated intensive and 
481.29  individualized case management services, employment services, 
481.30  health care services, rent subsidies or other short- or 
481.31  medium-term housing assistance, and other supportive services to 
481.32  eligible families and individuals.  Minimum project and 
481.33  application requirements shall be developed by the commissioner 
481.34  in cooperation with counties and their nonprofit partners with 
481.35  the goal to provide the maximum flexibility in program design. 
481.36     (c) Services available under this project must be 
482.1   coordinated with available health care services for an eligible 
482.2   project participant. 
482.3      Sec. 30.  Minnesota Statutes 2000, section 256K.25, 
482.4   subdivision 3, is amended to read: 
482.5      Subd. 3.  [COUNTY ELIGIBILITY.] (a) A county may request 
482.6   funding under this pilot project if the county: 
482.7      (1) agrees to develop, in cooperation with nonprofit 
482.8   partners, a supportive housing and managed care pilot project 
482.9   that integrates the delivery of employment services, supportive 
482.10  services, housing and health care for eligible families and 
482.11  individuals, or agrees to contract with an existing integrated 
482.12  program; 
482.13     (2) for eligible participants who are also MFIP recipients, 
482.14  agrees to develop, in cooperation with nonprofit partners, 
482.15  procedures to ensure that the services provided under the pilot 
482.16  project are closely coordinated with the services provided under 
482.17  MFIP; and 
482.18     (3) develops a method for evaluating the quality of the 
482.19  integrated services provided and the amount of any resulting 
482.20  cost savings to the county and state.; and 
482.21     (4) addresses in the pilot design the prevalence in the 
482.22  homeless population served those individuals with mental 
482.23  illness, a history of substance abuse, or HIV. 
482.24     (b) Preference may be given to counties that cooperate with 
482.25  other counties participating in the pilot project for purposes 
482.26  of evaluation and counties that provide additional funding. 
482.27     Sec. 31.  Minnesota Statutes 2000, section 256K.25, 
482.28  subdivision 4, is amended to read: 
482.29     Subd. 4.  [PARTICIPANT ELIGIBILITY.] (a) In order to be 
482.30  eligible meet initial eligibility criteria for the pilot 
482.31  project, the county must determine that a participant is 
482.32  homeless or is at risk of homelessness; has a mental illness, a 
482.33  history of substance abuse, or HIV; and is a family that meets 
482.34  the criteria in paragraph (b) or is an individual who meets the 
482.35  criteria in paragraph (c). 
482.36     (b) An eligible family must include a minor child or a 
483.1   pregnant woman, and: 
483.2      (1) be receiving or be eligible for MFIP assistance under 
483.3   chapter 256J; or 
483.4      (2) include an adult caregiver who is employed or is 
483.5   receiving employment and training services, and have household 
483.6   income below the MFIP exit level in section 256J.24, subdivision 
483.7   10.  
483.8      (c) An eligible individual must: 
483.9      (1) meet the eligibility requirements of the group 
483.10  residential housing program under section 256I.04, subdivision 
483.11  1; or 
483.12     (2) be a noncustodial parent who is employed or is 
483.13  receiving employment and training services, and have household 
483.14  income below the MFIP exit level in section 256J.24, subdivision 
483.15  10.  
483.16     (d) Counties participating in the pilot project may develop 
483.17  and initiate disenrollment criteria, subject to approval by the 
483.18  commissioner of human services. 
483.19     Sec. 32.  Minnesota Statutes 2000, section 256K.25, 
483.20  subdivision 5, is amended to read: 
483.21     Subd. 5.  [FUNDING.] A county may request funding from the 
483.22  commissioner for a specified number of TANF-eligible project 
483.23  participants.  The commissioner shall review the request for 
483.24  compliance with subdivisions 1 to 4 and may approve or 
483.25  disapprove the request.  If other funds are available, the 
483.26  commissioner may allocate funding for project participants who 
483.27  meet the eligibility requirements of subdivision 4, paragraph 
483.28  (c).  The commissioner may also redirect funds to the pilot 
483.29  project. 
483.30     Sec. 33.  Minnesota Statutes 2000, section 256K.25, 
483.31  subdivision 6, is amended to read: 
483.32     Subd. 6.  [REPORT.] Participating counties and the 
483.33  commissioner shall collaborate to prepare and issue an annual 
483.34  report, beginning December 1, 2001, to the chairs of the 
483.35  appropriate legislative committees on the pilot project's use of 
483.36  public resources, including other funds leveraged for this 
484.1   initiative, and an assessment of the feasibility of financing 
484.2   the pilot through other health and human services programs, the 
484.3   employment and housing status of the families and individuals 
484.4   served in the project, and the cost-effectiveness of the 
484.5   project.  The annual report must also evaluate the pilot project 
484.6   with respect to the following project goals:  that participants 
484.7   will lead more productive, healthier, more stable and better 
484.8   quality lives; that the teams created under the project to 
484.9   deliver services for each project participant will be 
484.10  accountable for ensuring that services are more appropriate, 
484.11  cost-effective and well-coordinated; and that the system-wide 
484.12  costs of serving this population, and the inappropriate use of 
484.13  emergency, crisis-oriented or institutional services, will be 
484.14  materially reduced.  The commissioner shall provide data that 
484.15  may be needed to evaluate the project to participating counties 
484.16  that request the data. 
484.17     Sec. 34.  Minnesota Statutes 2000, section 268.0122, 
484.18  subdivision 2, is amended to read: 
484.19     Subd. 2.  [SPECIFIC POWERS.] The commissioner of economic 
484.20  security shall: 
484.21     (1) administer and supervise all forms of unemployment 
484.22  benefits provided for under federal and state laws that are 
484.23  vested in the commissioner, including make investigations and 
484.24  audits, secure and transmit information, and make available 
484.25  services and facilities as the commissioner considers necessary 
484.26  or appropriate to facilitate the administration of any other 
484.27  states, or the federal Economic Security Law, and accept and use 
484.28  information, services, and facilities made available by other 
484.29  states or the federal government; 
484.30     (2) administer and supervise all employment and training 
484.31  services assigned to the department under federal or state law; 
484.32     (3) review and comment on local service unit plans and 
484.33  community investment program plans and approve or disapprove the 
484.34  plans; 
484.35     (4) establish and maintain administrative units necessary 
484.36  to perform administrative functions common to all divisions of 
485.1   the department; 
485.2      (5) supervise the county boards of commissioners, local 
485.3   service units, and any other units of government designated in 
485.4   federal or state law as responsible for employment and training 
485.5   programs; 
485.6      (6) establish administrative standards and payment 
485.7   conditions for providers of employment and training services; 
485.8      (7) act as the agent of, and cooperate with, the federal 
485.9   government in matters of mutual concern, including the 
485.10  administration of any federal funds granted to the state to aid 
485.11  in the performance of functions of the commissioner; 
485.12     (8) obtain reports from local service units and service 
485.13  providers for the purpose of evaluating the performance of 
485.14  employment and training services; and 
485.15     (9) review and comment on plans for Indian tribe employment 
485.16  and training services and approve or disapprove the plans; and 
485.17     (10) require all general employment and training programs 
485.18  that receive state funds to make available information about 
485.19  opportunities for women in nontraditional careers in the trades 
485.20  and technical occupations. 
485.21     Sec. 35.  Laws 1997, chapter 203, article 9, section 21, as 
485.22  amended by Laws 1998, chapter 407, article 6, section 111, and 
485.23  Laws 2000, chapter 488, article 10, section 28, is amended to 
485.24  read: 
485.25     Sec. 21.  [INELIGIBILITY FOR STATE FUNDED PROGRAMS.] 
485.26     (a) Effective on the date specified, the following persons 
485.27  will be ineligible for general assistance and general assistance 
485.28  medical care under Minnesota Statutes, chapter 256D, group 
485.29  residential housing under Minnesota Statutes, chapter 256I, and 
485.30  MFIP assistance under Minnesota Statutes, chapter 256J, funded 
485.31  with state money: 
485.32     (1) Beginning July 1, 2002, persons who are terminated from 
485.33  or denied Supplemental Security Income due to the 1996 changes 
485.34  in the federal law making persons whose alcohol or drug 
485.35  addiction is a material factor contributing to the person's 
485.36  disability ineligible for Supplemental Security Income, and are 
486.1   eligible for general assistance under Minnesota Statutes, 
486.2   section 256D.05, subdivision 1, paragraph (a), clause (15), 
486.3   general assistance medical care under Minnesota Statutes, 
486.4   chapter 256D, or group residential housing under Minnesota 
486.5   Statutes, chapter 256I; 
486.6      (2) Beginning July 1, 2002, legal noncitizens who are 
486.7   ineligible for Supplemental Security Income due to the 1996 
486.8   changes in federal law making certain noncitizens ineligible for 
486.9   these programs due to their noncitizen status; and 
486.10     (3) Beginning July 1, 2001 2002, legal noncitizens who are 
486.11  eligible for MFIP assistance, either the cash assistance portion 
486.12  or the food assistance portion, funded entirely with state money.
486.13     (b) State money that remains unspent due to changes in 
486.14  federal law enacted after May 12, 1997, that reduce state 
486.15  spending for legal noncitizens or for persons whose alcohol or 
486.16  drug addiction is a material factor contributing to the person's 
486.17  disability, or enacted after February 1, 1998, that reduce state 
486.18  spending for food benefits for legal noncitizens shall not 
486.19  cancel and shall be deposited in the TANF reserve account. 
486.20     Sec. 36.  [REPORT ON ASSESSMENT OF COUNTY PERFORMANCE.] 
486.21     By January 15, 2003, the commissioner, in consultation with 
486.22  counties, must report to the chairs of the house and senate 
486.23  committees having jurisdiction over human services, on a 
486.24  proposal for assessing county performance using a methodology 
486.25  that controls for demographic, economic, and other variables 
486.26  that may impact county achievement of MFIP performance 
486.27  outcomes.  The proposal must recommend how state and federal 
486.28  funds may be allocated to counties to encourage and reward high 
486.29  performance. 
486.30     Sec. 37.  [REPEALER.] 
486.31     Minnesota Statutes 2000, sections 256J.42, subdivision 4; 
486.32  256J.44; and 256J.46, subdivision 1a, are repealed. 
486.33                             ARTICLE 11
486.34                           DHS LICENSING
486.35     Section 1.  Minnesota Statutes 2000, section 13.46, 
486.36  subdivision 4, is amended to read: 
487.1      Subd. 4.  [LICENSING DATA.] (a) As used in this subdivision:
487.2      (1) "licensing data" means all data collected, maintained, 
487.3   used, or disseminated by the welfare system pertaining to 
487.4   persons licensed or registered or who apply for licensure or 
487.5   registration or who formerly were licensed or registered under 
487.6   the authority of the commissioner of human services; 
487.7      (2) "client" means a person who is receiving services from 
487.8   a licensee or from an applicant for licensure; and 
487.9      (3) "personal and personal financial data" means social 
487.10  security numbers, identity of and letters of reference, 
487.11  insurance information, reports from the bureau of criminal 
487.12  apprehension, health examination reports, and social/home 
487.13  studies. 
487.14     (b)(1) Except as provided in paragraph (c), the following 
487.15  data on current and former licensees are public:  name, address, 
487.16  telephone number of licensees, licensed capacity, type of client 
487.17  preferred, variances granted, type of dwelling, name and 
487.18  relationship of other family members, previous license history, 
487.19  class of license, and the existence and status of complaints.  
487.20  When disciplinary action has been taken against a licensee or 
487.21  the complaint is resolved, the following data are public:  the 
487.22  substance of the complaint, the findings of the investigation of 
487.23  the complaint, the record of informal resolution of a licensing 
487.24  violation, orders of hearing, findings of fact, conclusions of 
487.25  law, and specifications of the final disciplinary action 
487.26  contained in the record of disciplinary action.  
487.27     (2) The following data on persons subject to 
487.28  disqualification under section 245A.04 in connection with a 
487.29  license to provide family day care for children, child care 
487.30  center services, foster care for children in the provider's 
487.31  home, or foster care or day care services for adults in the 
487.32  provider's home, are public:  the nature of any disqualification 
487.33  set aside under section 245A.04, subdivision 3b, and the reasons 
487.34  for setting aside the disqualification; and the reasons for 
487.35  granting any variance under section 245A.04, subdivision 9. 
487.36     (3) When maltreatment is substantiated under section 
488.1   626.556 or 626.557 and the victim and the substantiated 
488.2   perpetrator are affiliated with a program licensed under chapter 
488.3   245A, the commissioner of human services, local social services 
488.4   agency, or county welfare agency may inform the license holder 
488.5   where the maltreatment occurred of the identity of the 
488.6   substantiated perpetrator and the victim. 
488.7      (c) The following are private data on individuals under 
488.8   section 13.02, subdivision 12, or nonpublic data under section 
488.9   13.02, subdivision 9:  personal and personal financial data on 
488.10  family day care program and family foster care program 
488.11  applicants and licensees and their family members who provide 
488.12  services under the license. 
488.13     (d) The following are private data on individuals:  the 
488.14  identity of persons who have made reports concerning licensees 
488.15  or applicants that appear in inactive investigative data, and 
488.16  the records of clients or employees of the licensee or applicant 
488.17  for licensure whose records are received by the licensing agency 
488.18  for purposes of review or in anticipation of a contested 
488.19  matter.  The names of reporters under sections 626.556 and 
488.20  626.557 may be disclosed only as provided in section 626.556, 
488.21  subdivision 11, or 626.557, subdivision 12b. 
488.22     (e) Data classified as private, confidential, nonpublic, or 
488.23  protected nonpublic under this subdivision become public data if 
488.24  submitted to a court or administrative law judge as part of a 
488.25  disciplinary proceeding in which there is a public hearing 
488.26  concerning the disciplinary action. 
488.27     (f) Data generated in the course of licensing 
488.28  investigations that relate to an alleged violation of law are 
488.29  investigative data under subdivision 3. 
488.30     (g) Data that are not public data collected, maintained, 
488.31  used, or disseminated under this subdivision that relate to or 
488.32  are derived from a report as defined in section 626.556, 
488.33  subdivision 2, are subject to the destruction provisions of 
488.34  section 626.556, subdivision 11.  
488.35     (h) Upon request, not public data collected, maintained, 
488.36  used, or disseminated under this subdivision that relate to or 
489.1   are derived from a report of substantiated maltreatment as 
489.2   defined in section 626.556 or 626.557 may be exchanged with the 
489.3   department of health for purposes of completing background 
489.4   studies pursuant to section 144.057. 
489.5      (i) Data on individuals collected according to licensing 
489.6   activities under chapter 245A, and data on individuals collected 
489.7   by the commissioner of human services according to maltreatment 
489.8   investigations under sections 626.556 and 626.557, may be shared 
489.9   with the department of human rights, the department of health, 
489.10  the department of corrections, the ombudsman for mental health 
489.11  and retardation, and the individual's professional regulatory 
489.12  board when there is reason to believe that laws or standards 
489.13  under the jurisdiction of those agencies may have been violated. 
489.14     (j) In addition to the notice of determinations required 
489.15  under section 626.556, subdivision 10f, if the commissioner or 
489.16  the local social services agency has determined that an 
489.17  individual is a substantiated perpetrator of maltreatment of a 
489.18  child based on sexual abuse, as defined in section 626.556, 
489.19  subdivision 2, and the commissioner or local social services 
489.20  agency knows that the individual is a person responsible for a 
489.21  child's care in another facility, the commissioner or local 
489.22  social services agency shall notify the head of that facility of 
489.23  this determination.  The notification must include an 
489.24  explanation of the individual's available appeal rights and the 
489.25  status of any appeal.  If a notice is given under this 
489.26  paragraph, the government entity making the notification shall 
489.27  provide a copy of the notice to the individual who is the 
489.28  subject of the notice. 
489.29     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
489.30     Sec. 2.  Minnesota Statutes 2000, section 144.057, 
489.31  subdivision 3, is amended to read: 
489.32     Subd. 3.  [RECONSIDERATIONS.] The commissioner of health 
489.33  shall review and decide reconsideration requests, including the 
489.34  granting of variances, in accordance with the procedures and 
489.35  criteria contained in chapter 245A and Minnesota Rules, parts 
489.36  9543.3000 to 9543.3090.  The commissioner's decision shall be 
490.1   provided to the individual and to the department of human 
490.2   services.  The commissioner's decision to grant or deny a 
490.3   reconsideration of disqualification is the final administrative 
490.4   agency action except for the provisions under section 245A.04, 
490.5   subdivisions 3b, paragraphs (e) and (f); and 3c, paragraph (a). 
490.6      <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
490.7      Sec. 3.  Minnesota Statutes 2000, section 214.104, is 
490.8   amended to read: 
490.9      214.104 [HEALTH-RELATED LICENSING BOARDS; DETERMINATIONS 
490.10  REGARDING DISQUALIFICATIONS FOR MALTREATMENT.] 
490.11     (a) A health-related licensing board shall make 
490.12  determinations as to whether licensees regulated persons who are 
490.13  under the board's jurisdiction should be disqualified under 
490.14  section 245A.04, subdivision 3d, from positions allowing direct 
490.15  contact with persons receiving services the subject of 
490.16  disciplinary or corrective action because of substantiated 
490.17  maltreatment under section 626.556 or 626.557.  A determination 
490.18  under this section may be done as part of an investigation under 
490.19  section 214.103.  The board shall make a determination within 90 
490.20  days of upon receipt, and after the review, of an investigation 
490.21  memorandum or other notice of substantiated maltreatment under 
490.22  section 626.556 or 626.557, or of a notice from the commissioner 
490.23  of human services that a background study of a licensee 
490.24  regulated person shows substantiated maltreatment.  The board 
490.25  shall also make a determination under this section upon 
490.26  consideration of the licensure of an individual who was subject 
490.27  to disqualification before licensure because of substantiated 
490.28  maltreatment. 
490.29     (b) In making a determination under this section, the board 
490.30  shall consider the nature and extent of any injury or harm 
490.31  resulting from the conduct that would constitute grounds for 
490.32  disqualification, the seriousness of the misconduct, the extent 
490.33  that disqualification is necessary to protect persons receiving 
490.34  services or the public, and other factors specified in section 
490.35  245A.04, subdivision 3b, paragraph (b). 
490.36     (c) The board shall determine the duration and extent of 
491.1   the disqualification or may establish conditions under which the 
491.2   licensee may hold a position allowing direct contact with 
491.3   persons receiving services or in a licensed facility.  
491.4      (b) Upon completion of its review of a report of 
491.5   substantiated maltreatment, the board shall notify the 
491.6   commissioner of human services and the lead agency that 
491.7   conducted an investigation under section 626.556 or 626.557, as 
491.8   applicable, of its determination.  The board shall notify the 
491.9   commissioner of human services if, following a review of the 
491.10  report of substantiated maltreatment, the board determines that 
491.11  it does not have jurisdiction in the matter and the commissioner 
491.12  shall make the appropriate disqualification decision regarding 
491.13  the regulated person as otherwise provided in chapter 245A.  The 
491.14  board shall also notify the commissioner of health or the 
491.15  commissioner of human services immediately upon receipt of 
491.16  knowledge of a facility or program allowing a regulated person 
491.17  to provide direct contact services at the facility or program 
491.18  while not complying with requirements placed on the regulated 
491.19  person. 
491.20     (c) In addition to any other remedy provided by law, the 
491.21  board may, through its designated board member, temporarily 
491.22  suspend the license of a licensee; deny a credential to an 
491.23  applicant; or require the regulated person to be continuously 
491.24  supervised, if the board finds there is probable cause to 
491.25  believe the regulated person referred to the board according to 
491.26  paragraph (a) poses an immediate risk of harm to vulnerable 
491.27  persons.  The board shall consider all relevant information 
491.28  available, which may include but is not limited to: 
491.29     (1) the extent the action is needed to protect persons 
491.30  receiving services or the public; 
491.31     (2) the recency of the maltreatment; 
491.32     (3) the number of incidents of maltreatment; 
491.33     (4) the intrusiveness or violence of the maltreatment; and 
491.34     (5) the vulnerability of the victim of maltreatment.  
491.35  The action shall take effect upon written notice to the 
491.36  regulated person, served by certified mail, specifying the 
492.1   statute violated.  The board shall notify the commissioner of 
492.2   health or the commissioner of human services of the suspension 
492.3   or denial of a credential.  The action shall remain in effect 
492.4   until the board issues a temporary stay or a final order in the 
492.5   matter after a hearing or upon agreement between the board and 
492.6   the regulated person.  At the time the board issues the notice, 
492.7   the regulated person shall inform the board of all settings in 
492.8   which the regulated person is employed or practices and the 
492.9   board shall inform all known employment and practice settings of 
492.10  the board action and schedule a disciplinary hearing to be held 
492.11  under chapter 14.  The board shall provide the regulated person 
492.12  with at least 30 days' notice of the hearing, unless the parties 
492.13  agree to a hearing date that provides less than 30 days notice, 
492.14  and shall schedule the hearing to begin no later than 90 days 
492.15  after issuance of the notice of hearing. 
492.16     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
492.17     Sec. 4.  Minnesota Statutes 2000, section 245A.03, 
492.18  subdivision 2b, is amended to read: 
492.19     Subd. 2b.  [EXCEPTION.] The provision in subdivision 2, 
492.20  clause (2), does not apply to: 
492.21     (1) a child care provider who as an applicant for licensure 
492.22  or as a license holder has received a license denial under 
492.23  section 245A.05, a fine conditional license under section 
492.24  245A.06, or a sanction under section 245A.07 from the 
492.25  commissioner that has not been reversed on appeal; or 
492.26     (2) a child care provider, or a child care provider who has 
492.27  a household member who, as a result of a licensing process, has 
492.28  a disqualification under this chapter that has not been set 
492.29  aside by the commissioner. 
492.30     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
492.31     Sec. 5.  Minnesota Statutes 2000, section 245A.04, 
492.32  subdivision 3a, is amended to read: 
492.33     Subd. 3a.  [NOTIFICATION TO SUBJECT AND LICENSE HOLDER OF 
492.34  STUDY RESULTS; DETERMINATION OF RISK OF HARM.] (a) The 
492.35  commissioner shall notify the applicant or license holder and 
492.36  the individual who is the subject of the study, in writing or by 
493.1   electronic transmission, of the results of the study.  When the 
493.2   study is completed, a notice that the study was undertaken and 
493.3   completed shall be maintained in the personnel files of the 
493.4   program.  For studies on individuals pertaining to a license to 
493.5   provide family day care or group family day care, foster care 
493.6   for children in the provider's own home, or foster care or day 
493.7   care services for adults in the provider's own home, the 
493.8   commissioner is not required to provide a separate notice of the 
493.9   background study results to the individual who is the subject of 
493.10  the study unless the study results in a disqualification of the 
493.11  individual. 
493.12     The commissioner shall notify the individual studied if the 
493.13  information in the study indicates the individual is 
493.14  disqualified from direct contact with persons served by the 
493.15  program.  The commissioner shall disclose the information 
493.16  causing disqualification and instructions on how to request a 
493.17  reconsideration of the disqualification to the individual 
493.18  studied.  An applicant or license holder who is not the subject 
493.19  of the study shall be informed that the commissioner has found 
493.20  information that disqualifies the subject from direct contact 
493.21  with persons served by the program.  However, only the 
493.22  individual studied must be informed of the information contained 
493.23  in the subject's background study unless the only basis for the 
493.24  disqualification is failure to cooperate, substantiated 
493.25  maltreatment under section 626.556 or 626.557, the Data 
493.26  Practices Act provides for release of the information, or the 
493.27  individual studied authorizes the release of the 
493.28  information.  When a disqualification is based on the subject's 
493.29  failure to cooperate with the background study or substantiated 
493.30  maltreatment under section 626.556 or 626.557, the agency that 
493.31  initiated the study shall be informed by the commissioner of the 
493.32  reason for the disqualification. 
493.33     (b) Except as provided in subdivision 3d, paragraph (b), if 
493.34  the commissioner determines that the individual studied has a 
493.35  disqualifying characteristic, the commissioner shall review the 
493.36  information immediately available and make a determination as to 
494.1   the subject's immediate risk of harm to persons served by the 
494.2   program where the individual studied will have direct contact.  
494.3   The commissioner shall consider all relevant information 
494.4   available, including the following factors in determining the 
494.5   immediate risk of harm:  the recency of the disqualifying 
494.6   characteristic; the recency of discharge from probation for the 
494.7   crimes; the number of disqualifying characteristics; the 
494.8   intrusiveness or violence of the disqualifying characteristic; 
494.9   the vulnerability of the victim involved in the disqualifying 
494.10  characteristic; and the similarity of the victim to the persons 
494.11  served by the program where the individual studied will have 
494.12  direct contact.  The commissioner may determine that the 
494.13  evaluation of the information immediately available gives the 
494.14  commissioner reason to believe one of the following: 
494.15     (1) The individual poses an imminent risk of harm to 
494.16  persons served by the program where the individual studied will 
494.17  have direct contact.  If the commissioner determines that an 
494.18  individual studied poses an imminent risk of harm to persons 
494.19  served by the program where the individual studied will have 
494.20  direct contact, the individual and the license holder must be 
494.21  sent a notice of disqualification.  The commissioner shall order 
494.22  the license holder to immediately remove the individual studied 
494.23  from direct contact.  The notice to the individual studied must 
494.24  include an explanation of the basis of this determination. 
494.25     (2) The individual poses a risk of harm requiring 
494.26  continuous supervision while providing direct contact services 
494.27  during the period in which the subject may request a 
494.28  reconsideration.  If the commissioner determines that an 
494.29  individual studied poses a risk of harm that requires continuous 
494.30  supervision, the individual and the license holder must be sent 
494.31  a notice of disqualification.  The commissioner shall order the 
494.32  license holder to immediately remove the individual studied from 
494.33  direct contact services or assure that the individual studied is 
494.34  within sight or hearing of another staff person when providing 
494.35  direct contact services during the period in which the 
494.36  individual may request a reconsideration of the 
495.1   disqualification.  If the individual studied does not submit a 
495.2   timely request for reconsideration, or the individual submits a 
495.3   timely request for reconsideration, but the disqualification is 
495.4   not set aside for that license holder, the license holder will 
495.5   be notified of the disqualification and ordered to immediately 
495.6   remove the individual from any position allowing direct contact 
495.7   with persons receiving services from the license holder. 
495.8      (3) The individual does not pose an imminent risk of harm 
495.9   or a risk of harm requiring continuous supervision while 
495.10  providing direct contact services during the period in which the 
495.11  subject may request a reconsideration.  If the commissioner 
495.12  determines that an individual studied does not pose a risk of 
495.13  harm that requires continuous supervision, only the individual 
495.14  must be sent a notice of disqualification.  The license holder 
495.15  must be sent a notice that more time is needed to complete the 
495.16  individual's background study.  If the individual studied 
495.17  submits a timely request for reconsideration, and if the 
495.18  disqualification is set aside for that license holder, the 
495.19  license holder will receive the same notification received by 
495.20  license holders in cases where the individual studied has no 
495.21  disqualifying characteristic.  If the individual studied does 
495.22  not submit a timely request for reconsideration, or the 
495.23  individual submits a timely request for reconsideration, but the 
495.24  disqualification is not set aside for that license holder, the 
495.25  license holder will be notified of the disqualification and 
495.26  ordered to immediately remove the individual from any position 
495.27  allowing direct contact with persons receiving services from the 
495.28  license holder.  
495.29     (c) County licensing agencies performing duties under this 
495.30  subdivision may develop an alternative system for determining 
495.31  the subject's immediate risk of harm to persons served by the 
495.32  program, providing the notices under paragraph (b), and 
495.33  documenting the action taken by the county licensing agency.  
495.34  Each county licensing agency's implementation of the alternative 
495.35  system is subject to approval by the commissioner.  
495.36  Notwithstanding this alternative system, county licensing 
496.1   agencies shall complete the requirements of paragraph (a). 
496.2      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
496.3      Sec. 6.  Minnesota Statutes 2000, section 245A.04, 
496.4   subdivision 3b, is amended to read: 
496.5      Subd. 3b.  [RECONSIDERATION OF DISQUALIFICATION.] (a) The 
496.6   individual who is the subject of the disqualification may 
496.7   request a reconsideration of the disqualification.  
496.8      The individual must submit the request for reconsideration 
496.9   to the commissioner in writing.  A request for reconsideration 
496.10  for an individual who has been sent a notice of disqualification 
496.11  under subdivision 3a, paragraph (b), clause (1) or (2), must be 
496.12  submitted within 30 calendar days of the disqualified 
496.13  individual's receipt of the notice of disqualification.  A 
496.14  request for reconsideration for an individual who has been sent 
496.15  a notice of disqualification under subdivision 3a, paragraph 
496.16  (b), clause (3), must be submitted within 15 calendar days of 
496.17  the disqualified individual's receipt of the notice of 
496.18  disqualification.  An individual who was determined to have 
496.19  maltreated a child under section 626.556 or a vulnerable adult 
496.20  under section 626.557, and who was disqualified under this 
496.21  section on the basis of serious or recurring maltreatment, may 
496.22  request reconsideration of both the maltreatment and the 
496.23  disqualification determinations.  The request for 
496.24  reconsideration of the maltreatment determination and the 
496.25  disqualification must be submitted within 30 calendar days of 
496.26  the individual's receipt of the notice of disqualification.  
496.27  Removal of a disqualified individual from direct contact shall 
496.28  be ordered if the individual does not request reconsideration 
496.29  within the prescribed time, and for an individual who submits a 
496.30  timely request for reconsideration, if the disqualification is 
496.31  not set aside.  The individual must present information showing 
496.32  that: 
496.33     (1) the information the commissioner relied upon is 
496.34  incorrect or inaccurate.  If the basis of a reconsideration 
496.35  request is that a maltreatment determination or disposition 
496.36  under section 626.556 or 626.557 is incorrect, and the 
497.1   commissioner has issued a final order in an appeal of that 
497.2   determination or disposition under section 256.045 or 245A.08, 
497.3   subdivision 5, the commissioner's order is conclusive on the 
497.4   issue of maltreatment.  If the individual did not request 
497.5   reconsideration of the maltreatment determination, the 
497.6   maltreatment determination is deemed conclusive; or 
497.7      (2) the subject of the study does not pose a risk of harm 
497.8   to any person served by the applicant or license holder. 
497.9      (b) The commissioner shall rescind the disqualification if 
497.10  the commissioner finds that the information relied on to 
497.11  disqualify the subject is incorrect.  The commissioner may set 
497.12  aside the disqualification under this section if the 
497.13  commissioner finds that the information the commissioner relied 
497.14  upon is incorrect or the individual does not pose a risk of harm 
497.15  to any person served by the applicant or license holder.  In 
497.16  determining that an individual does not pose a risk of harm, the 
497.17  commissioner shall consider the consequences of the event or 
497.18  events that lead to disqualification, whether there is more than 
497.19  one disqualifying event, the vulnerability of the victim at the 
497.20  time of the event, the time elapsed without a repeat of the same 
497.21  or similar event, documentation of successful completion by the 
497.22  individual studied of training or rehabilitation pertinent to 
497.23  the event, and any other information relevant to 
497.24  reconsideration.  In reviewing a disqualification under this 
497.25  section, the commissioner shall give preeminent weight to the 
497.26  safety of each person to be served by the license holder or 
497.27  applicant over the interests of the license holder or applicant. 
497.28     (c) Unless the information the commissioner relied on in 
497.29  disqualifying an individual is incorrect, the commissioner may 
497.30  not set aside the disqualification of an individual in 
497.31  connection with a license to provide family day care for 
497.32  children, foster care for children in the provider's own home, 
497.33  or foster care or day care services for adults in the provider's 
497.34  own home if: 
497.35     (1) less than ten years have passed since the discharge of 
497.36  the sentence imposed for the offense; and the individual has 
498.1   been convicted of a violation of any offense listed in sections 
498.2   609.20 (manslaughter in the first degree), 609.205 (manslaughter 
498.3   in the second degree), criminal vehicular homicide under 609.21 
498.4   (criminal vehicular homicide and injury), 609.215 (aiding 
498.5   suicide or aiding attempted suicide), felony violations under 
498.6   609.221 to 609.2231 (assault in the first, second, third, or 
498.7   fourth degree), 609.713 (terroristic threats), 609.235 (use of 
498.8   drugs to injure or to facilitate crime), 609.24 (simple 
498.9   robbery), 609.245 (aggravated robbery), 609.25 (kidnapping), 
498.10  609.255 (false imprisonment), 609.561 or 609.562 (arson in the 
498.11  first or second degree), 609.71 (riot), burglary in the first or 
498.12  second degree under 609.582 (burglary), 609.66 (dangerous 
498.13  weapon), 609.665 (spring guns), 609.67 (machine guns and 
498.14  short-barreled shotguns), 609.749 (harassment; stalking), 
498.15  152.021 or 152.022 (controlled substance crime in the first or 
498.16  second degree), 152.023, subdivision 1, clause (3) or (4), or 
498.17  subdivision 2, clause (4) (controlled substance crime in the 
498.18  third degree), 152.024, subdivision 1, clause (2), (3), or (4) 
498.19  (controlled substance crime in the fourth degree), 609.224, 
498.20  subdivision 2, paragraph (c) (fifth-degree assault by a 
498.21  caregiver against a vulnerable adult), 609.228 (great bodily 
498.22  harm caused by distribution of drugs), 609.23 (mistreatment of 
498.23  persons confined), 609.231 (mistreatment of residents or 
498.24  patients), 609.2325 (criminal abuse of a vulnerable adult), 
498.25  609.233 (criminal neglect of a vulnerable adult), 609.2335 
498.26  (financial exploitation of a vulnerable adult), 609.234 (failure 
498.27  to report), 609.265 (abduction), 609.2664 to 609.2665 
498.28  (manslaughter of an unborn child in the first or second degree), 
498.29  609.267 to 609.2672 (assault of an unborn child in the first, 
498.30  second, or third degree), 609.268 (injury or death of an unborn 
498.31  child in the commission of a crime), 617.293 (disseminating or 
498.32  displaying harmful material to minors), a gross misdemeanor 
498.33  offense under 609.324, subdivision 1 (other prohibited acts), a 
498.34  gross misdemeanor offense under 609.378 (neglect or endangerment 
498.35  of a child), a gross misdemeanor offense under 609.377 
498.36  (malicious punishment of a child), 609.72, subdivision 3 
499.1   (disorderly conduct against a vulnerable adult); or an attempt 
499.2   or conspiracy to commit any of these offenses, as each of these 
499.3   offenses is defined in Minnesota Statutes; or an offense in any 
499.4   other state, the elements of which are substantially similar to 
499.5   the elements of any of the foregoing offenses; 
499.6      (2) regardless of how much time has passed since the 
499.7   discharge of the sentence imposed for the offense, the 
499.8   individual was convicted of a violation of any offense listed in 
499.9   sections 609.185 to 609.195 (murder in the first, second, or 
499.10  third degree), 609.2661 to 609.2663 (murder of an unborn child 
499.11  in the first, second, or third degree), a felony offense under 
499.12  609.377 (malicious punishment of a child), a felony offense 
499.13  under 609.324, subdivision 1 (other prohibited acts), a felony 
499.14  offense under 609.378 (neglect or endangerment of a child), 
499.15  609.322 (solicitation, inducement, and promotion of 
499.16  prostitution), 609.342 to 609.345 (criminal sexual conduct in 
499.17  the first, second, third, or fourth degree), 609.352 
499.18  (solicitation of children to engage in sexual conduct), 617.246 
499.19  (use of minors in a sexual performance), 617.247 (possession of 
499.20  pictorial representations of a minor), 609.365 (incest), a 
499.21  felony offense under sections 609.2242 and 609.2243 (domestic 
499.22  assault), a felony offense of spousal abuse, a felony offense of 
499.23  child abuse or neglect, a felony offense of a crime against 
499.24  children, or an attempt or conspiracy to commit any of these 
499.25  offenses as defined in Minnesota Statutes, or an offense in any 
499.26  other state, the elements of which are substantially similar to 
499.27  any of the foregoing offenses; 
499.28     (3) within the seven years preceding the study, the 
499.29  individual committed an act that constitutes maltreatment of a 
499.30  child under section 626.556, subdivision 10e, and that resulted 
499.31  in substantial bodily harm as defined in section 609.02, 
499.32  subdivision 7a, or substantial mental or emotional harm as 
499.33  supported by competent psychological or psychiatric evidence; or 
499.34     (4) within the seven years preceding the study, the 
499.35  individual was determined under section 626.557 to be the 
499.36  perpetrator of a substantiated incident of maltreatment of a 
500.1   vulnerable adult that resulted in substantial bodily harm as 
500.2   defined in section 609.02, subdivision 7a, or substantial mental 
500.3   or emotional harm as supported by competent psychological or 
500.4   psychiatric evidence. 
500.5      In the case of any ground for disqualification under 
500.6   clauses (1) to (4), if the act was committed by an individual 
500.7   other than the applicant or license holder residing in the 
500.8   applicant's or license holder's home, the applicant or license 
500.9   holder may seek reconsideration when the individual who 
500.10  committed the act no longer resides in the home.  
500.11     The disqualification periods provided under clauses (1), 
500.12  (3), and (4) are the minimum applicable disqualification 
500.13  periods.  The commissioner may determine that an individual 
500.14  should continue to be disqualified from licensure because the 
500.15  license holder or applicant poses a risk of harm to a person 
500.16  served by that individual after the minimum disqualification 
500.17  period has passed. 
500.18     (d) The commissioner shall respond in writing or by 
500.19  electronic transmission to all reconsideration requests for 
500.20  which the basis for the request is that the information relied 
500.21  upon by the commissioner to disqualify is incorrect or 
500.22  inaccurate within 30 working days of receipt of a request and 
500.23  all relevant information.  If the basis for the request is that 
500.24  the individual does not pose a risk of harm, the commissioner 
500.25  shall respond to the request within 15 working days after 
500.26  receiving the request for reconsideration and all relevant 
500.27  information.  If the request is based on both the correctness or 
500.28  accuracy of the information relied on to disqualify the 
500.29  individual and the risk of harm, the commissioner shall respond 
500.30  to the request within 45 working days after receiving the 
500.31  request for reconsideration and all relevant information.  If 
500.32  the disqualification is set aside, the commissioner shall notify 
500.33  the applicant or license holder in writing or by electronic 
500.34  transmission of the decision. 
500.35     (e) Except as provided in subdivision 3c, the 
500.36  commissioner's decision to disqualify an individual, including 
501.1   the decision to grant or deny a rescission or set aside a 
501.2   disqualification under this section, is the final administrative 
501.3   agency action and shall not be subject to further review in a 
501.4   contested case under chapter 14 involving a negative licensing 
501.5   appeal taken in response to the disqualification or involving an 
501.6   accuracy and completeness appeal under section 13.04. if a 
501.7   disqualification is not set aside or is not rescinded, an 
501.8   individual who was disqualified on the basis of a preponderance 
501.9   of evidence that the individual committed an act or acts that 
501.10  meet the definition of any of the crimes lists in subdivision 
501.11  3d, paragraph (a), clauses (1) to (4); or for failure to make 
501.12  required reports under section 626.556, subdivision 3, or 
501.13  626.557, subdivision 3, pursuant to subdivision 3d, paragraph 
501.14  (a), clause (4), may request a fair hearing under section 
501.15  256.045.  Except as provided under subdivision 3c, the 
501.16  commissioner's final order for an individual under this 
501.17  paragraph is conclusive on the issue of disqualification, 
501.18  including for purposes of subsequent studies conducted under 
501.19  section 245A.04, subdivision 3, and is the only administrative 
501.20  appeal of the final agency determination, specifically, 
501.21  including a challenge to the accuracy and completeness of data 
501.22  under section 13.04. 
501.23     (f) Except as provided under subdivision 3c, if an 
501.24  individual was disqualified on the basis of a determination of 
501.25  maltreatment under section 626.556 or 626.557, which was serious 
501.26  or recurring, and the individual has requested reconsideration 
501.27  of the maltreatment determination under section 626.556, 
501.28  subdivision 10i, or 626.557, subdivision 9d, and also requested 
501.29  reconsideration of the disqualification under this subdivision, 
501.30  reconsideration of the maltreatment determination and 
501.31  reconsideration of the disqualification shall be consolidated 
501.32  into a single reconsideration.  For maltreatment and 
501.33  disqualification determinations made by county agencies, the 
501.34  consolidated reconsideration shall be conducted by the county 
501.35  agency.  Except as provided under subdivision 3c, if an 
501.36  individual who was disqualified on the basis of serious or 
502.1   recurring maltreatment requests a fair hearing on the 
502.2   maltreatment determination under section 626.556, subdivision 
502.3   10i, or 626.557, subdivision 9d, the scope of the fair hearing 
502.4   under section 256.045 shall include the maltreatment 
502.5   determination and the disqualification.  Except as provided 
502.6   under subdivision 3c, the commissioner's final order for an 
502.7   individual under this paragraph is conclusive on the issue of 
502.8   maltreatment and disqualification, including for purposes of 
502.9   subsequent studies conducted under subdivision 3, and is the 
502.10  only administrative appeal of the final agency determination, 
502.11  specifically, including a challenge to the accuracy and 
502.12  completeness of data under section 13.04. 
502.13     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
502.14     Sec. 7.  Minnesota Statutes 2000, section 245A.04, 
502.15  subdivision 3c, is amended to read: 
502.16     Subd. 3c.  [CONTESTED CASE.] (a) Notwithstanding 
502.17  subdivision 3b, paragraphs (e) and (f), if a disqualification is 
502.18  not set aside, a person who is an employee of an employer, as 
502.19  defined in section 179A.03, subdivision 15, may request a 
502.20  contested case hearing under chapter 14.  If the 
502.21  disqualification which was not set aside or was not rescinded 
502.22  was based on a maltreatment determination, the scope of the 
502.23  contested case hearing shall include the maltreatment 
502.24  determination and the disqualification.  In such cases, a fair 
502.25  hearing shall not be conducted under section 256.045.  Rules 
502.26  adopted under this chapter may not preclude an employee in a 
502.27  contested case hearing for disqualification from submitting 
502.28  evidence concerning information gathered under subdivision 3, 
502.29  paragraph (e). 
502.30     (b) If a disqualification for which reconsideration was 
502.31  requested and which was not set aside or was not rescinded under 
502.32  subdivision 3b is the basis for a denial of a license under 
502.33  section 245A.05 or a licensing sanction under section 245A.07, 
502.34  the license holder has the right to a contested case hearing 
502.35  under chapter 14 and Minnesota Rules, parts 1400.8510 to 
502.36  1400.8612 and successor rules.  The appeal must be submitted in 
503.1   accordance with section 245A.05 or 245A.07, subdivision 3.  As 
503.2   provided for under section 245A.08, subdivision 2a, the scope of 
503.3   the consolidated contested case hearing shall include the 
503.4   disqualification and the licensing sanction or denial of a 
503.5   license.  If the disqualification was based on a determination 
503.6   of substantiated serious or recurring maltreatment under section 
503.7   626.556 or 626.557, the appeal must be submitted in accordance 
503.8   with sections 245A.07, subdivision 3, and 626.556, subdivision 
503.9   10i, or 626.557, subdivision 9d.  As provided for under section 
503.10  245A.08, subdivision 2a, the scope of the contested case hearing 
503.11  shall include the maltreatment determination, the 
503.12  disqualification, and the licensing sanction or denial of a 
503.13  license.  In such cases, a fair hearing shall not be conducted 
503.14  under section 256.045. 
503.15     (c) If a maltreatment determination or disqualification, 
503.16  which was not set aside or was not rescinded under subdivision 
503.17  3b, is the basis for a denial of a license under section 245A.05 
503.18  or a licensing sanction under section 245A.07, and the 
503.19  disqualified subject is an individual other than the license 
503.20  holder and upon whom a background study must be conducted under 
503.21  subdivision 3, the hearing of all parties may be consolidated 
503.22  into a single contested case hearing upon consent of all parties 
503.23  and the administrative law judge.  
503.24     (d) The commissioner's final order under section 245A.08, 
503.25  subdivision 5, is conclusive on the issue of maltreatment and 
503.26  disqualification, including for purposes of subsequent 
503.27  background studies.  The contested case hearing under this 
503.28  subdivision is the only administrative appeal of the final 
503.29  agency determination, specifically, including a challenge to the 
503.30  accuracy and completeness of data under section 13.04. 
503.31     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
503.32     Sec. 8.  Minnesota Statutes 2000, section 245A.04, 
503.33  subdivision 3d, is amended to read: 
503.34     Subd. 3d.  [DISQUALIFICATION.] (a) Except as provided in 
503.35  paragraph (b), when a background study completed under 
503.36  subdivision 3 shows any of the following:  a conviction of one 
504.1   or more crimes listed in clauses (1) to (4); the individual has 
504.2   admitted to or a preponderance of the evidence indicates the 
504.3   individual has committed an act or acts that meet the definition 
504.4   of any of the crimes listed in clauses (1) to (4); or an 
504.5   investigation results in an administrative determination listed 
504.6   under clause (4), the individual shall be disqualified from any 
504.7   position allowing direct contact with persons receiving services 
504.8   from the license holder and for individuals studied under 
504.9   section 245A.04, subdivision 3, paragraph (c), clauses (2), (6), 
504.10  and (7), in H.F. 1381, if enacted, the individual shall also be 
504.11  disqualified from access to persons receiving services from the 
504.12  license holder: 
504.13     (1) regardless of how much time has passed since the 
504.14  discharge of the sentence imposed for the offense, and unless 
504.15  otherwise specified, regardless of the level of the conviction, 
504.16  the individual was convicted of any of the following offenses:  
504.17  sections 609.185 (murder in the first degree); 609.19 (murder in 
504.18  the second degree); 609.195 (murder in the third degree); 
504.19  609.2661 (murder of an unborn child in the first degree); 
504.20  609.2662 (murder of an unborn child in the second degree); 
504.21  609.2663 (murder of an unborn child in the third degree); 
504.22  609.322 (solicitation, inducement, and promotion of 
504.23  prostitution); 609.342 (criminal sexual conduct in the first 
504.24  degree); 609.343 (criminal sexual conduct in the second degree); 
504.25  609.344 (criminal sexual conduct in the third degree); 609.345 
504.26  (criminal sexual conduct in the fourth degree); 609.352 
504.27  (solicitation of children to engage in sexual conduct); 609.365 
504.28  (incest); felony offense under 609.377 (malicious punishment of 
504.29  a child); a felony offense under 609.378 (neglect or 
504.30  endangerment of a child); a felony offense under 609.324, 
504.31  subdivision 1 (other prohibited acts); 617.246 (use of minors in 
504.32  sexual performance prohibited); 617.247 (possession of pictorial 
504.33  representations of minors); a felony offense under sections 
504.34  609.2242 and 609.2243 (domestic assault), a felony offense of 
504.35  spousal abuse, a felony offense of child abuse or neglect, a 
504.36  felony offense of a crime against children; or attempt or 
505.1   conspiracy to commit any of these offenses as defined in 
505.2   Minnesota Statutes, or an offense in any other state or country, 
505.3   where the elements are substantially similar to any of the 
505.4   offenses listed in this clause; 
505.5      (2) if less than 15 years have passed since the discharge 
505.6   of the sentence imposed for the offense; and the individual has 
505.7   received a felony conviction for a violation of any of these 
505.8   offenses:  sections 609.20 (manslaughter in the first degree); 
505.9   609.205 (manslaughter in the second degree); 609.21 (criminal 
505.10  vehicular homicide and injury); 609.215 (suicide); 609.221 to 
505.11  609.2231 (assault in the first, second, third, or fourth 
505.12  degree); repeat offenses under 609.224 (assault in the fifth 
505.13  degree); repeat offenses under 609.3451 (criminal sexual conduct 
505.14  in the fifth degree); 609.713 (terroristic threats); 609.235 
505.15  (use of drugs to injure or facilitate crime); 609.24 (simple 
505.16  robbery); 609.245 (aggravated robbery); 609.25 (kidnapping); 
505.17  609.255 (false imprisonment); 609.561 (arson in the first 
505.18  degree); 609.562 (arson in the second degree); 609.563 (arson in 
505.19  the third degree); repeat offenses under 617.23 (indecent 
505.20  exposure; penalties); repeat offenses under 617.241 (obscene 
505.21  materials and performances; distribution and exhibition 
505.22  prohibited; penalty); 609.71 (riot); 609.66 (dangerous weapons); 
505.23  609.67 (machine guns and short-barreled shotguns); 609.749 
505.24  (harassment; stalking; penalties); 609.228 (great bodily harm 
505.25  caused by distribution of drugs); 609.2325 (criminal abuse of a 
505.26  vulnerable adult); 609.2664 (manslaughter of an unborn child in 
505.27  the first degree); 609.2665 (manslaughter of an unborn child in 
505.28  the second degree); 609.267 (assault of an unborn child in the 
505.29  first degree); 609.2671 (assault of an unborn child in the 
505.30  second degree); 609.268 (injury or death of an unborn child in 
505.31  the commission of a crime); 609.52 (theft); 609.2335 (financial 
505.32  exploitation of a vulnerable adult); 609.521 (possession of 
505.33  shoplifting gear); 609.582 (burglary); 609.625 (aggravated 
505.34  forgery); 609.63 (forgery); 609.631 (check forgery; offering a 
505.35  forged check); 609.635 (obtaining signature by false pretense); 
505.36  609.27 (coercion); 609.275 (attempt to coerce); 609.687 
506.1   (adulteration); 260C.301 (grounds for termination of parental 
506.2   rights); and chapter 152 (drugs; controlled substance).  An 
506.3   attempt or conspiracy to commit any of these offenses, as each 
506.4   of these offenses is defined in Minnesota Statutes; or an 
506.5   offense in any other state or country, the elements of which are 
506.6   substantially similar to the elements of the offenses in this 
506.7   clause.  If the individual studied is convicted of one of the 
506.8   felonies listed in this clause, but the sentence is a gross 
506.9   misdemeanor or misdemeanor disposition, the lookback period for 
506.10  the conviction is the period applicable to the disposition, that 
506.11  is the period for gross misdemeanors or misdemeanors; 
506.12     (3) if less than ten years have passed since the discharge 
506.13  of the sentence imposed for the offense; and the individual has 
506.14  received a gross misdemeanor conviction for a violation of any 
506.15  of the following offenses:  sections 609.224 (assault in the 
506.16  fifth degree); 609.2242 and 609.2243 (domestic assault); 
506.17  violation of an order for protection under 518B.01, subdivision 
506.18  14; 609.3451 (criminal sexual conduct in the fifth degree); 
506.19  repeat offenses under 609.746 (interference with privacy); 
506.20  repeat offenses under 617.23 (indecent exposure); 617.241 
506.21  (obscene materials and performances); 617.243 (indecent 
506.22  literature, distribution); 617.293 (harmful materials; 
506.23  dissemination and display to minors prohibited); 609.71 (riot); 
506.24  609.66 (dangerous weapons); 609.749 (harassment; stalking; 
506.25  penalties); 609.224, subdivision 2, paragraph (c) (assault in 
506.26  the fifth degree by a caregiver against a vulnerable adult); 
506.27  609.23 (mistreatment of persons confined); 609.231 (mistreatment 
506.28  of residents or patients); 609.2325 (criminal abuse of a 
506.29  vulnerable adult); 609.233 (criminal neglect of a vulnerable 
506.30  adult); 609.2335 (financial exploitation of a vulnerable adult); 
506.31  609.234 (failure to report maltreatment of a vulnerable adult); 
506.32  609.72, subdivision 3 (disorderly conduct against a vulnerable 
506.33  adult); 609.265 (abduction); 609.378 (neglect or endangerment of 
506.34  a child); 609.377 (malicious punishment of a child); 609.324, 
506.35  subdivision 1a (other prohibited acts; minor engaged in 
506.36  prostitution); 609.33 (disorderly house); 609.52 (theft); 
507.1   609.582 (burglary); 609.631 (check forgery; offering a forged 
507.2   check); 609.275 (attempt to coerce); or an attempt or conspiracy 
507.3   to commit any of these offenses, as each of these offenses is 
507.4   defined in Minnesota Statutes; or an offense in any other state 
507.5   or country, the elements of which are substantially similar to 
507.6   the elements of any of the offenses listed in this clause.  If 
507.7   the defendant is convicted of one of the gross misdemeanors 
507.8   listed in this clause, but the sentence is a misdemeanor 
507.9   disposition, the lookback period for the conviction is the 
507.10  period applicable to misdemeanors; or 
507.11     (4) if less than seven years have passed since the 
507.12  discharge of the sentence imposed for the offense; and the 
507.13  individual has received a misdemeanor conviction for a violation 
507.14  of any of the following offenses:  sections 609.224 (assault in 
507.15  the fifth degree); 609.2242 (domestic assault); violation of an 
507.16  order for protection under 518B.01 (Domestic Abuse Act); 
507.17  violation of an order for protection under 609.3232 (protective 
507.18  order authorized; procedures; penalties); 609.746 (interference 
507.19  with privacy); 609.79 (obscene or harassing phone calls); 
507.20  609.795 (letter, telegram, or package; opening; harassment); 
507.21  617.23 (indecent exposure; penalties); 609.2672 (assault of an 
507.22  unborn child in the third degree); 617.293 (harmful materials; 
507.23  dissemination and display to minors prohibited); 609.66 
507.24  (dangerous weapons); 609.665 (spring guns); 609.2335 (financial 
507.25  exploitation of a vulnerable adult); 609.234 (failure to report 
507.26  maltreatment of a vulnerable adult); 609.52 (theft); 609.27 
507.27  (coercion); or an attempt or conspiracy to commit any of these 
507.28  offenses, as each of these offenses is defined in Minnesota 
507.29  Statutes; or an offense in any other state or country, the 
507.30  elements of which are substantially similar to the elements of 
507.31  any of the offenses listed in this clause; failure to make 
507.32  required reports under section 626.556, subdivision 3, or 
507.33  626.557, subdivision 3, for incidents in which:  (i) the final 
507.34  disposition under section 626.556 or 626.557 was substantiated 
507.35  maltreatment, and (ii) the maltreatment was recurring or 
507.36  serious; or substantiated serious or recurring maltreatment of a 
508.1   minor under section 626.556 or of a vulnerable adult under 
508.2   section 626.557 for which there is a preponderance of evidence 
508.3   that the maltreatment occurred, and that the subject was 
508.4   responsible for the maltreatment. 
508.5      For the purposes of this section, "serious maltreatment" 
508.6   means sexual abuse; maltreatment resulting in death; or 
508.7   maltreatment resulting in serious injury which reasonably 
508.8   requires the care of a physician whether or not the care of a 
508.9   physician was sought; or abuse resulting in serious injury.  For 
508.10  purposes of this section, "abuse resulting in serious injury" 
508.11  means:  bruises, bites, skin laceration or tissue damage; 
508.12  fractures; dislocations; evidence of internal injuries; head 
508.13  injuries with loss of consciousness; extensive second-degree or 
508.14  third-degree burns and other burns for which complications are 
508.15  present; extensive second-degree or third-degree frostbite, and 
508.16  others for which complications are present; irreversible 
508.17  mobility or avulsion of teeth; injuries to the eyeball; 
508.18  ingestion of foreign substances and objects that are harmful; 
508.19  near drowning; and heat exhaustion or sunstroke.  For purposes 
508.20  of this section, "care of a physician" is treatment received or 
508.21  ordered by a physician, but does not include diagnostic testing, 
508.22  assessment, or observation.  For the purposes of this section, 
508.23  "recurring maltreatment" means more than one incident of 
508.24  maltreatment for which there is a preponderance of evidence that 
508.25  the maltreatment occurred, and that the subject was responsible 
508.26  for the maltreatment.  For purposes of this section, "access" 
508.27  means physical access to an individual receiving services or the 
508.28  individual's personal property without continuous, direct 
508.29  supervision as defined in section 245A.04, subdivision 3.  
508.30     (b) If Except for background studies related to child 
508.31  foster care, adult foster care, or family child care licensure, 
508.32  when the subject of a background study is licensed regulated by 
508.33  a health-related licensing board as defined in chapter 214, and 
508.34  the regulated person has been determined to have been 
508.35  responsible for substantiated maltreatment under section 626.556 
508.36  or 626.557, instead of the commissioner making a decision 
509.1   regarding disqualification, the board shall make the a 
509.2   determination regarding a disqualification under this 
509.3   subdivision based on a finding of substantiated maltreatment 
509.4   under section 626.556 or 626.557.  The commissioner shall notify 
509.5   the health-related licensing board if a background study shows 
509.6   that a licensee would be disqualified because of substantiated 
509.7   maltreatment and the board shall make a determination under 
509.8   section 214.104. whether to impose disciplinary or corrective 
509.9   action under chapter 214. 
509.10     (1) The commissioner shall notify the health-related 
509.11  licensing board: 
509.12     (i) upon completion of a background study that produces a 
509.13  record showing that the individual was determined to have been 
509.14  responsible for substantiated maltreatment; 
509.15     (ii) upon the commissioner's completion of an investigation 
509.16  that determined the individual was responsible for substantiated 
509.17  maltreatment; or 
509.18     (iii) upon receipt from another agency of a finding of 
509.19  substantiated maltreatment for which the individual was 
509.20  responsible. 
509.21     (2) The commissioner's notice shall indicate whether the 
509.22  individual would have been disqualified by the commissioner for 
509.23  the substantiated maltreatment if the individual were not 
509.24  regulated by the board.  The commissioner shall concurrently 
509.25  send a copy of this notice to the individual.  
509.26     (3) Notwithstanding the exclusion from this subdivision for 
509.27  individuals who provide child foster care, adult foster care, or 
509.28  family child care, when the commissioner or a local agency has 
509.29  reason to believe that the direct contact services provided by 
509.30  the individual may fall within the jurisdiction of a 
509.31  health-related licensing board, a referral shall be made to the 
509.32  board as provided in this section. 
509.33     (4) If, upon review of the information provided by the 
509.34  commissioner, a health-related licensing board informs the 
509.35  commissioner that the board does not have jurisdiction to take 
509.36  disciplinary or corrective action, the commissioner shall make 
510.1   the appropriate disqualification decision regarding the 
510.2   individual as otherwise provided in this chapter. 
510.3      (5) The commissioner has the authority to monitor the 
510.4   facility's compliance with any requirements that the 
510.5   health-related licensing board places on regulated persons 
510.6   practicing in a facility either during the period pending a 
510.7   final decision on a disciplinary or corrective action or as a 
510.8   result of a disciplinary or corrective action.  The commissioner 
510.9   has the authority to order the immediate removal of a regulated 
510.10  person from direct contact or access when a board issues an 
510.11  order of temporary suspension based on a determination that the 
510.12  regulated person poses an immediate risk of harm to persons 
510.13  receiving services in a licensed facility. 
510.14     (6) A facility that allows a regulated person to provide 
510.15  direct contact services while not complying with the 
510.16  requirements imposed by the health-related licensing board is 
510.17  subject to action by the commissioner as specified under 
510.18  sections 245A.06 and 245A.07. 
510.19     (7) The commissioner shall notify a health-related 
510.20  licensing board immediately upon receipt of knowledge of 
510.21  noncompliance with requirements placed on a facility or upon a 
510.22  person regulated by the board. 
510.23     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
510.24     Sec. 9.  Minnesota Statutes 2000, section 245A.05, is 
510.25  amended to read: 
510.26     245A.05 [DENIAL OF APPLICATION.] 
510.27     The commissioner may deny a license if an applicant fails 
510.28  to comply with applicable laws or rules, or knowingly withholds 
510.29  relevant information from or gives false or misleading 
510.30  information to the commissioner in connection with an 
510.31  application for a license or during an investigation.  An 
510.32  applicant whose application has been denied by the commissioner 
510.33  must be given notice of the denial.  Notice must be given by 
510.34  certified mail.  The notice must state the reasons the 
510.35  application was denied and must inform the applicant of the 
510.36  right to a contested case hearing under chapter 14 and Minnesota 
511.1   Rules, parts 1400.8510 to 1400.8612 and successor rules.  The 
511.2   applicant may appeal the denial by notifying the commissioner in 
511.3   writing by certified mail within 20 calendar days after 
511.4   receiving notice that the application was denied.  Section 
511.5   245A.08 applies to hearings held to appeal the commissioner's 
511.6   denial of an application. 
511.7      <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
511.8      Sec. 10.  Minnesota Statutes 2000, section 245A.06, is 
511.9   amended to read: 
511.10     245A.06 [CORRECTION ORDER AND FINES CONDITIONAL LICENSE.] 
511.11     Subdivision 1.  [CONTENTS OF CORRECTION ORDERS OR FINES AND 
511.12  CONDITIONAL LICENSES.] (a) If the commissioner finds that the 
511.13  applicant or license holder has failed to comply with an 
511.14  applicable law or rule and this failure does not imminently 
511.15  endanger the health, safety, or rights of the persons served by 
511.16  the program, the commissioner may issue a correction order and 
511.17  an order of conditional license to or impose a fine on the 
511.18  applicant or license holder.  When issuing a conditional 
511.19  license, the commissioner shall consider the nature, chronicity, 
511.20  or severity of the violation of law or rule and the effect of 
511.21  the violation on the health, safety, or rights of persons served 
511.22  by the program.  The correction order or fine conditional 
511.23  license must state: 
511.24     (1) the conditions that constitute a violation of the law 
511.25  or rule; 
511.26     (2) the specific law or rule violated; 
511.27     (3) the time allowed to correct each violation; and 
511.28     (4) if a fine is imposed, the amount of the fine license is 
511.29  made conditional, the length and terms of the conditional 
511.30  license. 
511.31     (b) Nothing in this section prohibits the commissioner from 
511.32  proposing a sanction as specified in section 245A.07, prior to 
511.33  issuing a correction order or fine conditional license. 
511.34     Subd. 2.  [RECONSIDERATION OF CORRECTION ORDERS.] If the 
511.35  applicant or license holder believes that the contents of the 
511.36  commissioner's correction order are in error, the applicant or 
512.1   license holder may ask the department of human services to 
512.2   reconsider the parts of the correction order that are alleged to 
512.3   be in error.  The request for reconsideration must be in writing 
512.4   and received by the commissioner within 20 calendar days after 
512.5   receipt of the correction order by the applicant or license 
512.6   holder, and: 
512.7      (1) specify the parts of the correction order that are 
512.8   alleged to be in error; 
512.9      (2) explain why they are in error; and 
512.10     (3) include documentation to support the allegation of 
512.11  error. 
512.12     A request for reconsideration does not stay any provisions 
512.13  or requirements of the correction order.  The commissioner's 
512.14  disposition of a request for reconsideration is final and not 
512.15  subject to appeal under chapter 14. 
512.16     Subd. 3.  [FAILURE TO COMPLY.] If the commissioner finds 
512.17  that the applicant or license holder has not corrected the 
512.18  violations specified in the correction order or conditional 
512.19  license, the commissioner may impose a fine and order other 
512.20  licensing sanctions pursuant to section 245A.07.  If a fine was 
512.21  imposed and the violation was not corrected, the commissioner 
512.22  may impose an additional fine.  This section does not prohibit 
512.23  the commissioner from seeking a court order, denying an 
512.24  application, or suspending, revoking, or making conditional the 
512.25  license in addition to imposing a fine. 
512.26     Subd. 4.  [NOTICE OF FINE CONDITIONAL LICENSE; 
512.27  RECONSIDERATION OF FINE CONDITIONAL LICENSE.] A license holder 
512.28  who is ordered to pay a fine If a license is made conditional, 
512.29  the license holder must be notified of the order by certified 
512.30  mail.  The notice must be mailed to the address shown on the 
512.31  application or the last known address of the license holder.  
512.32  The notice must state the reasons the fine conditional license 
512.33  was ordered and must inform the license holder of the 
512.34  responsibility for payment of fines in subdivision 7 and the 
512.35  right to request reconsideration of the fine conditional license 
512.36  by the commissioner.  The license holder may request 
513.1   reconsideration of the order to forfeit a fine of conditional 
513.2   license by notifying the commissioner by certified mail within 
513.3   20 calendar days after receiving the order.  The request must be 
513.4   in writing and must be received by the commissioner within ten 
513.5   calendar days after the license holder received the order.  The 
513.6   license holder may submit with the request for reconsideration 
513.7   written argument or evidence in support of the request for 
513.8   reconsideration.  A timely request for reconsideration shall 
513.9   stay forfeiture of the fine imposition of the terms of the 
513.10  conditional license until the commissioner issues a decision on 
513.11  the request for reconsideration.  The request for 
513.12  reconsideration must be in writing and: 
513.13     (1) specify the parts of the violation that are alleged to 
513.14  be in error; 
513.15     (2) explain why they are in error; 
513.16     (3) include documentation to support the allegation of 
513.17  error; and 
513.18     (4) any other information relevant to the fine or the 
513.19  amount of the fine. 
513.20     The commissioner's disposition of a request for 
513.21  reconsideration is final and not subject to appeal under chapter 
513.22  14. 
513.23     Subd. 5.  [FORFEITURE OF FINES.] The license holder shall 
513.24  pay the fines assessed on or before the payment date specified 
513.25  in the commissioner's order.  If the license holder fails to 
513.26  fully comply with the order, the commissioner shall issue a 
513.27  second fine or suspend the license until the license holder 
513.28  complies.  If the license holder receives state funds, the 
513.29  state, county, or municipal agencies or departments responsible 
513.30  for administering the funds shall withhold payments and recover 
513.31  any payments made while the license is suspended for failure to 
513.32  pay a fine.  
513.33     Subd. 5a.  [ACCRUAL OF FINES.] A license holder shall 
513.34  promptly notify the commissioner of human services, in writing, 
513.35  when a violation specified in an order to forfeit is corrected.  
513.36  If upon reinspection the commissioner determines that a 
514.1   violation has not been corrected as indicated by the order to 
514.2   forfeit, the commissioner may issue a second fine.  The 
514.3   commissioner shall notify the license holder by certified mail 
514.4   that a second fine has been assessed.  The license holder may 
514.5   request reconsideration of the second fine under the provisions 
514.6   of subdivision 4. 
514.7      Subd. 6.  [AMOUNT OF FINES.] Fines shall be assessed as 
514.8   follows: 
514.9      (1) the license holder shall forfeit $1,000 for each 
514.10  occurrence of violation of law or rule prohibiting the 
514.11  maltreatment of children or the maltreatment of vulnerable 
514.12  adults, including but not limited to corporal punishment, 
514.13  illegal or unauthorized use of physical, mechanical, or chemical 
514.14  restraints, and illegal or unauthorized use of aversive or 
514.15  deprivation procedures; 
514.16     (2) the license holder shall forfeit $200 for each 
514.17  occurrence of a violation of law or rule governing matters of 
514.18  health, safety, or supervision, including but not limited to the 
514.19  provision of adequate staff to child or adult ratios; and 
514.20     (3) the license holder shall forfeit $100 for each 
514.21  occurrence of a violation of law or rule other than those 
514.22  included in clauses (1) and (2). 
514.23     For the purposes of this section, "occurrence" means each 
514.24  violation identified in the commissioner's forfeiture order. 
514.25     Subd. 7.  [RESPONSIBILITY FOR PAYMENT OF FINES.] When a 
514.26  fine has been assessed, the license holder may not avoid payment 
514.27  by closing, selling, or otherwise transferring the licensed 
514.28  program to a third party.  In such an event, the license holder 
514.29  will be personally liable for payment.  In the case of a 
514.30  corporation, each controlling individual is personally and 
514.31  jointly liable for payment. 
514.32     Fines for child care centers must be assessed according to 
514.33  this section. 
514.34     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
514.35     Sec. 11.  Minnesota Statutes 2000, section 245A.07, is 
514.36  amended to read: 
515.1      245A.07 [SANCTIONS.] 
515.2      Subdivision 1.  [SANCTIONS AVAILABLE.] In addition to 
515.3   ordering forfeiture of fines making a license conditional under 
515.4   section 245A.06, the commissioner may propose to suspend, or 
515.5   revoke, or make conditional the license, impose a fine, or 
515.6   secure an injunction against the continuing operation of the 
515.7   program of a license holder who does not comply with applicable 
515.8   law or rule.  When applying sanctions authorized under this 
515.9   section, the commissioner shall consider the nature, chronicity, 
515.10  or severity of the violation of law or rule and the effect of 
515.11  the violation on the health, safety, or rights of persons served 
515.12  by the program. 
515.13     Subd. 2.  [IMMEDIATE SUSPENSION IN CASES OF IMMINENT DANGER 
515.14  TO HEALTH, SAFETY, OR RIGHTS TEMPORARY IMMEDIATE SUSPENSION.] (a)
515.15  If the license holder's actions or failure to comply with 
515.16  applicable law or rule has placed poses an imminent risk of harm 
515.17  to the health, safety, or rights of persons served by the 
515.18  program in imminent danger, the commissioner shall act 
515.19  immediately to temporarily suspend the license.  No state funds 
515.20  shall be made available or be expended by any agency or 
515.21  department of state, county, or municipal government for use by 
515.22  a license holder regulated under this chapter while a license is 
515.23  under immediate suspension.  A notice stating the reasons for 
515.24  the immediate suspension and informing the license holder of the 
515.25  right to a contested case an expedited hearing under chapter 
515.26  14 and Minnesota Rules, parts 1400.8510 to 1400.8612 and 
515.27  successor rules, must be delivered by personal service to the 
515.28  address shown on the application or the last known address of 
515.29  the license holder.  The license holder may appeal an order 
515.30  immediately suspending a license.  The appeal of an order 
515.31  immediately suspending a license must be made in writing by 
515.32  certified mail and must be received by the commissioner within 
515.33  five calendar days after the license holder receives notice that 
515.34  the license has been immediately suspended.  A license holder 
515.35  and any controlling individual shall discontinue operation of 
515.36  the program upon receipt of the commissioner's order to 
516.1   immediately suspend the license. 
516.2      (b) The commissioner is liable to the license holder for 
516.3   actual damages for days of lost service in an amount not more 
516.4   than $50,000 when: 
516.5      (1) the commissioner immediately suspends a license under 
516.6   paragraph (a); and 
516.7      (2) the administrative law judge recommends, after a review 
516.8   of the facts in an expedited hearing under chapter 14 and 
516.9   Minnesota Rules, parts 1400.8510 to 1400.8612 and successor 
516.10  rules, that reasonable cause did not exist at the time the 
516.11  commissioner issued the immediate suspension.  
516.12     (c) If the commissioner immediately suspends a license 
516.13  under paragraph (a) and the administrative law judge recommends 
516.14  that reasonable cause exists for the immediate suspension, the 
516.15  commissioner is not liable to the license holder. 
516.16     Subd. 2a.  [IMMEDIATE SUSPENSION EXPEDITED HEARING.] (a) 
516.17  Within five working days of receipt of the license holder's 
516.18  timely appeal, the commissioner shall request assignment of an 
516.19  administrative law judge.  The request must include a proposed 
516.20  date, time, and place of a hearing.  A hearing must be conducted 
516.21  by an administrative law judge within 30 calendar days of the 
516.22  request for assignment, unless an extension is requested by 
516.23  either party and granted by the administrative law judge for 
516.24  good cause.  The commissioner shall issue a notice of hearing by 
516.25  certified mail at least ten working days before the hearing.  
516.26  The scope of the hearing shall be limited solely to the issue of 
516.27  whether the temporary immediate suspension should remain in 
516.28  effect pending the commissioner's final order under section 
516.29  245A.08, regarding a licensing sanction issued under subdivision 
516.30  3 following the immediate suspension.  The burden of proof in 
516.31  expedited hearings under this subdivision shall be limited to 
516.32  the commissioner's demonstration that reasonable cause exists to 
516.33  believe that the license holder's actions or failure to comply 
516.34  with applicable law or rule poses an imminent risk of harm to 
516.35  the health, safety, or rights of persons served by the program.  
516.36     (b) The administrative law judge shall issue findings of 
517.1   fact, conclusions, and a recommendation within ten working days 
517.2   from the date of hearing.  The commissioner's final order shall 
517.3   be issued within ten working days from receipt of the 
517.4   recommendation of the administrative law judge.  Within 90 
517.5   calendar days after a final order affirming an immediate 
517.6   suspension, the commissioner shall make a determination 
517.7   regarding whether a final licensing sanction shall be issued 
517.8   under subdivision 3.  The license holder shall continue to be 
517.9   prohibited from operation of the program during this 90-day 
517.10  period. 
517.11     Subd. 3.  [LICENSE SUSPENSION, REVOCATION, DENIAL OR 
517.12  CONDITIONAL LICENSE FINE.] The commissioner may suspend, or 
517.13  revoke, make conditional, or deny a license, or impose a fine if 
517.14  an applicant or a license holder fails to comply fully with 
517.15  applicable laws or rules, or knowingly withholds relevant 
517.16  information from or gives false or misleading information to the 
517.17  commissioner in connection with an application for a license or 
517.18  during an investigation.  A license holder who has had a license 
517.19  suspended, revoked, or made conditional has been ordered to pay 
517.20  a fine must be given notice of the action by certified mail.  
517.21  The notice must be mailed to the address shown on the 
517.22  application or the last known address of the license holder.  
517.23  The notice must state the reasons the license was suspended, 
517.24  revoked, or made conditional a fine was ordered. 
517.25     (a) If the license was suspended or revoked, the notice 
517.26  must inform the license holder of the right to a contested case 
517.27  hearing under chapter 14 and Minnesota Rules, parts 1400.8510 to 
517.28  1400.8612 and successor rules.  The license holder may appeal an 
517.29  order suspending or revoking a license.  The appeal of an order 
517.30  suspending or revoking a license must be made in writing by 
517.31  certified mail and must be received by the commissioner within 
517.32  ten calendar days after the license holder receives notice that 
517.33  the license has been suspended or revoked.  
517.34     (b) If the license was made conditional, the notice must 
517.35  inform the license holder of the right to request a 
517.36  reconsideration by the commissioner.  The request for 
518.1   reconsideration must be made in writing by certified mail and 
518.2   must be received by the commissioner within ten calendar days 
518.3   after the license holder receives notice that the license has 
518.4   been made conditional.  The license holder may submit with the 
518.5   request for reconsideration written argument or evidence in 
518.6   support of the request for reconsideration.  The commissioner's 
518.7   disposition of a request for reconsideration is final and is not 
518.8   subject to appeal under chapter 14. (1) If the license holder 
518.9   was ordered to pay a fine, the notice must inform the license 
518.10  holder of the responsibility for payment of fines and the right 
518.11  to a contested case hearing under chapter 14 and Minnesota 
518.12  Rules, parts 1400.8510 to 1400.8612 and successor rules.  The 
518.13  appeal of an order to pay a fine must be made in writing by 
518.14  certified mail and must be received by the commissioner within 
518.15  ten calendar days after the license holder receives notice that 
518.16  the fine has been ordered.  
518.17     (2) The license holder shall pay the fines assessed on or 
518.18  before the payment date specified.  If the license holder fails 
518.19  to fully comply with the order, the commissioner may issue a 
518.20  second fine or suspend the license until the license holder 
518.21  complies.  If the license holder receives state funds, the 
518.22  state, county, or municipal agencies or departments responsible 
518.23  for administering the funds shall withhold payments and recover 
518.24  any payments made while the license is suspended for failure to 
518.25  pay a fine.  A timely appeal shall stay payment of the fine 
518.26  until the commissioner issues a final order.  
518.27     (3) A license holder shall promptly notify the commissioner 
518.28  of human services, in writing, when a violation specified in the 
518.29  order to forfeit a fine is corrected.  If upon reinspection the 
518.30  commissioner determines that a violation has not been corrected 
518.31  as indicated by the order to forfeit a fine, the commissioner 
518.32  may issue a second fine.  The commissioner shall notify the 
518.33  license holder by certified mail that a second fine has been 
518.34  assessed.  The license holder may appeal the second fine as 
518.35  provided under this subdivision. 
518.36     (4) Fines shall be assessed as follows:  the license holder 
519.1   shall forfeit $1,000 for each determination of maltreatment of a 
519.2   child under section 626.556 or the maltreatment of a vulnerable 
519.3   adult under section 626.557; the license holder shall forfeit 
519.4   $200 for each occurrence of a violation of law or rule governing 
519.5   matters of health, safety, or supervision, including but not 
519.6   limited to the provision of adequate staff to child or adult 
519.7   ratios, and failure to submit a background study; and the 
519.8   license holder shall forfeit $100 for each occurrence of a 
519.9   violation of law or rule other than those subject to a $1,000 or 
519.10  $200 fine above.  For purposes of this section, "occurrence" 
519.11  means each violation identified in the commissioner's fine order.
519.12     (5) When a fine has been assessed, the license holder may 
519.13  not avoid payment by closing, selling, or otherwise transferring 
519.14  the licensed program to a third party.  In such an event, the 
519.15  license holder will be personally liable for payment.  In the 
519.16  case of a corporation, each controlling individual is personally 
519.17  and jointly liable for payment. 
519.18     Subd. 4.  [ADOPTION AGENCY VIOLATIONS.] If a license holder 
519.19  licensed to place children for adoption fails to provide 
519.20  services as described in the disclosure form required by section 
519.21  259.37, subdivision 2, the sanctions under this section may be 
519.22  imposed. 
519.23     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
519.24     Sec. 12.  Minnesota Statutes 2000, section 245A.08, is 
519.25  amended to read: 
519.26     245A.08 [HEARINGS.] 
519.27     Subdivision 1.  [RECEIPT OF APPEAL; CONDUCT OF HEARING.] 
519.28  Upon receiving a timely appeal or petition pursuant to 
519.29  section 245A.04, subdivision 3c, 245A.05, or 245A.07, 
519.30  subdivision 3, the commissioner shall issue a notice of and 
519.31  order for hearing to the appellant under chapter 14 and 
519.32  Minnesota Rules, parts 1400.8510 to 1400.8612 and successor 
519.33  rules. 
519.34     Subd. 2.  [CONDUCT OF HEARINGS.] At any hearing provided 
519.35  for by section 245A.04, subdivision 3c, 245A.05, or 245A.07, 
519.36  subdivision 3, the appellant may be represented by counsel and 
520.1   has the right to call, examine, and cross-examine witnesses.  
520.2   The administrative law judge may require the presence of 
520.3   witnesses and evidence by subpoena on behalf of any party.  
520.4      Subd. 2a.  [CONSOLIDATED CONTESTED CASE HEARINGS FOR 
520.5   SANCTIONS BASED ON MALTREATMENT DETERMINATIONS AND 
520.6   DISQUALIFICATIONS.] (a) When a denial of a license under section 
520.7   245A.05 or a licensing sanction under section 245A.07, 
520.8   subdivision 3, is based on a disqualification for which 
520.9   reconsideration was requested and which was not set aside or was 
520.10  not rescinded under section 245A.04, subdivision 3b, the scope 
520.11  of the contested case hearing shall include the disqualification 
520.12  and the licensing sanction or denial of a license.  When the 
520.13  licensing sanction or denial of a license is based on a 
520.14  determination of maltreatment under section 626.556 or 626.557, 
520.15  or a disqualification for serious or recurring maltreatment 
520.16  which was not set aside or was not rescinded, the scope of the 
520.17  contested case hearing shall include the maltreatment 
520.18  determination, disqualification, and the licensing sanction or 
520.19  denial of a license.  In such cases, a fair hearing under 
520.20  section 256.045 shall not be conducted as provided for in 
520.21  sections 626.556, subdivision 10i, and 626.557, subdivision 9d. 
520.22     (b) In consolidated contested case hearings regarding 
520.23  sanctions issued in family child care, child foster care, and 
520.24  adult foster care, the county attorney shall defend the 
520.25  commissioner's orders in accordance with section 245A.16, 
520.26  subdivision 4. 
520.27     (c) The commissioner's final order under subdivision 5 is 
520.28  the final agency action on the issue of maltreatment and 
520.29  disqualification, including for purposes of subsequent 
520.30  background studies under section 245A.04, subdivision 3, and is 
520.31  the only administrative appeal of the final agency 
520.32  determination, specifically, including a challenge to the 
520.33  accuracy and completeness of data under section 13.04. 
520.34     (d) When consolidated hearings under this subdivision 
520.35  involve a licensing sanction based on a previous maltreatment 
520.36  determination for which the commissioner has issued a final 
521.1   order in an appeal of that determination under section 256.045, 
521.2   or the individual failed to exercise the right to appeal the 
521.3   previous maltreatment determination under section 626.556, 
521.4   subdivision 10i, or 626.557, subdivision 9d, the commissioner's 
521.5   order is conclusive on the issue of maltreatment.  In such 
521.6   cases, the scope of the administrative law judge's review shall 
521.7   be limited to the disqualification and the licensing sanction or 
521.8   denial of a license.  In the case of a denial of a license or a 
521.9   licensing sanction issued to a facility based on a maltreatment 
521.10  determination regarding an individual who is not the license 
521.11  holder or a household member, the scope of the administrative 
521.12  law judge's review includes the maltreatment determination. 
521.13     (e) If a maltreatment determination or disqualification, 
521.14  which was not set aside or was not rescinded under section 
521.15  245A.04, subdivision 3b, is the basis for a denial of a license 
521.16  under section 245A.05 or a licensing sanction under section 
521.17  245A.07, and the disqualified subject is an individual other 
521.18  than the license holder and upon whom a background study must be 
521.19  conducted under section 245A.04, subdivision 3, the hearings of 
521.20  all parties may be consolidated into a single contested case 
521.21  hearing upon consent of all parties and the administrative law 
521.22  judge.  
521.23     Subd. 3.  [BURDEN OF PROOF.] (a) At a hearing regarding 
521.24  suspension, immediate suspension, or revocation of a license for 
521.25  family day care or foster care a licensing sanction under 
521.26  section 245A.07, including consolidated hearings under 
521.27  subdivision 2a, the commissioner may demonstrate reasonable 
521.28  cause for action taken by submitting statements, reports, or 
521.29  affidavits to substantiate the allegations that the license 
521.30  holder failed to comply fully with applicable law or rule.  If 
521.31  the commissioner demonstrates that reasonable cause existed, the 
521.32  burden of proof in hearings involving suspension, immediate 
521.33  suspension, or revocation of a family day care or foster care 
521.34  license shifts to the license holder to demonstrate by a 
521.35  preponderance of the evidence that the license holder was in 
521.36  full compliance with those laws or rules that the commissioner 
522.1   alleges the license holder violated, at the time that the 
522.2   commissioner alleges the violations of law or rules occurred. 
522.3      (b) At a hearing on denial of an application, the applicant 
522.4   bears the burden of proof to demonstrate by a preponderance of 
522.5   the evidence that the appellant has complied fully with sections 
522.6   245A.01 to 245A.15 this chapter and other applicable law or rule 
522.7   and that the application should be approved and a license 
522.8   granted. 
522.9      (c) At all other hearings under this section, the 
522.10  commissioner bears the burden of proof to demonstrate, by a 
522.11  preponderance of the evidence, that the violations of law or 
522.12  rule alleged by the commissioner occurred. 
522.13     Subd. 4.  [RECOMMENDATION OF ADMINISTRATIVE LAW JUDGE.] The 
522.14  administrative law judge shall recommend whether or not the 
522.15  commissioner's order should be affirmed.  The recommendations 
522.16  must be consistent with this chapter and the rules of the 
522.17  commissioner.  The recommendations must be in writing and 
522.18  accompanied by findings of fact and conclusions and must be 
522.19  mailed to the parties by certified mail to their last known 
522.20  addresses as shown on the license or application. 
522.21     Subd. 5.  [NOTICE OF THE COMMISSIONER'S FINAL ORDER.] After 
522.22  considering the findings of fact, conclusions, and 
522.23  recommendations of the administrative law judge, the 
522.24  commissioner shall issue a final order.  The commissioner shall 
522.25  consider, but shall not be bound by, the recommendations of the 
522.26  administrative law judge.  The appellant must be notified of the 
522.27  commissioner's final order as required by chapter 14 and 
522.28  Minnesota Rules, parts 1400.8510 to 1400.8612 and successor 
522.29  rules.  The notice must also contain information about the 
522.30  appellant's rights under chapter 14 and Minnesota Rules, parts 
522.31  1400.8510 to 1400.8612 and successor rules.  The institution of 
522.32  proceedings for judicial review of the commissioner's final 
522.33  order shall not stay the enforcement of the final order except 
522.34  as provided in section 14.65.  A license holder and each 
522.35  controlling individual of a license holder whose license has 
522.36  been revoked because of noncompliance with applicable law or 
523.1   rule must not be granted a license for five years following the 
523.2   revocation.  An applicant whose application was denied must not 
523.3   be granted a license for two years following a denial, unless 
523.4   the applicant's subsequent application contains new information 
523.5   which constitutes a substantial change in the conditions that 
523.6   caused the previous denial. 
523.7      <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
523.8      Sec. 13.  Minnesota Statutes 2000, section 245A.16, 
523.9   subdivision 1, is amended to read: 
523.10     Subdivision 1.  [DELEGATION OF AUTHORITY TO AGENCIES.] (a) 
523.11  County agencies and private agencies that have been designated 
523.12  or licensed by the commissioner to perform licensing functions 
523.13  and activities under section 245A.04, to recommend denial of 
523.14  applicants under section 245A.05, to issue correction orders, to 
523.15  issue variances, and recommend fines a conditional license under 
523.16  section 245A.06, or to recommend suspending, or revoking, and 
523.17  making licenses probationary a license or issuing a fine under 
523.18  section 245A.07, shall comply with rules and directives of the 
523.19  commissioner governing those functions and with this section. 
523.20     (b) For family day care programs, the commissioner may 
523.21  authorize licensing reviews every two years after a licensee has 
523.22  had at least one annual review. 
523.23     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
523.24     Sec. 14.  Minnesota Statutes 2000, section 245B.08, 
523.25  subdivision 3, is amended to read: 
523.26     Subd. 3.  [SANCTIONS AVAILABLE.] Nothing in this 
523.27  subdivision shall be construed to limit the commissioner's 
523.28  authority to suspend, or revoke a license, or make conditional 
523.29  issue a fine at any time a license under section 245A.07; make 
523.30  correction orders and require fines make a license conditional 
523.31  for failure to comply with applicable laws or rules under 
523.32  section 245A.06; or deny an application for license under 
523.33  section 245A.05. 
523.34     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
523.35     Sec. 15.  Minnesota Statutes 2000, section 256.045, 
523.36  subdivision 3, is amended to read: 
524.1      Subd. 3.  [STATE AGENCY HEARINGS.] (a) State agency 
524.2   hearings are available for the following:  (1) any person 
524.3   applying for, receiving or having received public assistance, 
524.4   medical care, or a program of social services granted by the 
524.5   state agency or a county agency or the federal Food Stamp Act 
524.6   whose application for assistance is denied, not acted upon with 
524.7   reasonable promptness, or whose assistance is suspended, 
524.8   reduced, terminated, or claimed to have been incorrectly paid; 
524.9   (2) any patient or relative aggrieved by an order of the 
524.10  commissioner under section 252.27; (3) a party aggrieved by a 
524.11  ruling of a prepaid health plan; (4) except as provided under 
524.12  chapter 245A, any individual or facility determined by a lead 
524.13  agency to have maltreated a vulnerable adult under section 
524.14  626.557 after they have exercised their right to administrative 
524.15  reconsideration under section 626.557; (5) any person whose 
524.16  claim for foster care payment according to a placement of the 
524.17  child resulting from a child protection assessment under section 
524.18  626.556 is denied or not acted upon with reasonable promptness, 
524.19  regardless of funding source; (6) any person to whom a right of 
524.20  appeal according to this section is given by other provision of 
524.21  law; (7) an applicant aggrieved by an adverse decision to an 
524.22  application for a hardship waiver under section 
524.23  256B.15; or (8) except as provided under chapter 245A, an 
524.24  individual or facility determined to have maltreated a minor 
524.25  under section 626.556, after the individual or facility has 
524.26  exercised the right to administrative reconsideration under 
524.27  section 626.556; or (9) except as provided under chapter 245A, 
524.28  an individual disqualified under section 245A.04, subdivision 
524.29  3d, on the basis of serious or recurring maltreatment; a 
524.30  preponderance of the evidence that the individual has committed 
524.31  an act or acts that meet the definition of any of the crimes 
524.32  listed in section 245A.04, subdivision 3d, paragraph (a), 
524.33  clauses (1) to (4); or for failing to make reports required 
524.34  under section 626.556, subdivision 3, or 626.557, subdivision 
524.35  3.  Hearings regarding a maltreatment determination under clause 
524.36  (4) or (8) and a disqualification under this clause in which the 
525.1   basis for a disqualification is serious or recurring 
525.2   maltreatment, which has not been set aside or rescinded under 
525.3   section 245A.04, subdivision 3b, shall be consolidated into a 
525.4   single fair hearing.  In such cases, the scope of review by the 
525.5   human services referee shall include both the maltreatment 
525.6   determination and the disqualification.  The failure to exercise 
525.7   the right to an administrative reconsideration shall not be a 
525.8   bar to a hearing under this section if federal law provides an 
525.9   individual the right to a hearing to dispute a finding of 
525.10  maltreatment.  Individuals and organizations specified in this 
525.11  section may contest the specified action, decision, or final 
525.12  disposition before the state agency by submitting a written 
525.13  request for a hearing to the state agency within 30 days after 
525.14  receiving written notice of the action, decision, or final 
525.15  disposition, or within 90 days of such written notice if the 
525.16  applicant, recipient, patient, or relative shows good cause why 
525.17  the request was not submitted within the 30-day time limit. 
525.18     The hearing for an individual or facility under clause 
525.19  (4) or, (8), or (9) is the only administrative appeal to the 
525.20  final agency determination specifically, including a challenge 
525.21  to the accuracy and completeness of data under section 13.04.  
525.22  Hearings requested under clause (4) apply only to incidents of 
525.23  maltreatment that occur on or after October 1, 1995.  Hearings 
525.24  requested by nursing assistants in nursing homes alleged to have 
525.25  maltreated a resident prior to October 1, 1995, shall be held as 
525.26  a contested case proceeding under the provisions of chapter 14.  
525.27  Hearings requested under clause (8) apply only to incidents of 
525.28  maltreatment that occur on or after July 1, 1997.  A hearing for 
525.29  an individual or facility under clause (8) is only available 
525.30  when there is no juvenile court or adult criminal action 
525.31  pending.  If such action is filed in either court while an 
525.32  administrative review is pending, the administrative review must 
525.33  be suspended until the judicial actions are completed.  If the 
525.34  juvenile court action or criminal charge is dismissed or the 
525.35  criminal action overturned, the matter may be considered in an 
525.36  administrative hearing. 
526.1      For purposes of this section, bargaining unit grievance 
526.2   procedures are not an administrative appeal. 
526.3      The scope of hearings involving claims to foster care 
526.4   payments under clause (5) shall be limited to the issue of 
526.5   whether the county is legally responsible for a child's 
526.6   placement under court order or voluntary placement agreement 
526.7   and, if so, the correct amount of foster care payment to be made 
526.8   on the child's behalf and shall not include review of the 
526.9   propriety of the county's child protection determination or 
526.10  child placement decision. 
526.11     (b) A vendor of medical care as defined in section 256B.02, 
526.12  subdivision 7, or a vendor under contract with a county agency 
526.13  to provide social services under section 256E.08, subdivision 4, 
526.14  is not a party and may not request a hearing under this section, 
526.15  except if assisting a recipient as provided in subdivision 4. 
526.16     (c) An applicant or recipient is not entitled to receive 
526.17  social services beyond the services included in the amended 
526.18  community social services plan developed under section 256E.081, 
526.19  subdivision 3, if the county agency has met the requirements in 
526.20  section 256E.081. 
526.21     (d) The commissioner may summarily affirm the county or 
526.22  state agency's proposed action without a hearing when the sole 
526.23  issue is an automatic change due to a change in state or federal 
526.24  law. 
526.25     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
526.26     Sec. 16.  Minnesota Statutes 2000, section 256.045, 
526.27  subdivision 3b, is amended to read: 
526.28     Subd. 3b.  [STANDARD OF EVIDENCE FOR MALTREATMENT AND 
526.29  DISQUALIFICATION HEARINGS.] The state human services referee 
526.30  shall determine that maltreatment has occurred if a 
526.31  preponderance of evidence exists to support the final 
526.32  disposition under sections 626.556 and 626.557.  For purposes of 
526.33  hearings regarding disqualification, the state human services 
526.34  referee shall affirm the proposed disqualification in an appeal 
526.35  under subdivision 3, paragraph (a), clause (9), if a 
526.36  preponderance of the evidence shows the individual has:  
527.1      (1) committed maltreatment under section 626.556 or 
527.2   626.557, which is serious or recurring; 
527.3      (2) committed an act or acts meeting the definition of any 
527.4   of the crimes listed in section 245A.04, subdivision 3d, 
527.5   paragraph (a), clauses (1) to (4); or 
527.6      (3) failed to make required reports under section 626.556 
527.7   or 626.557 for incidents in which:  
527.8      (i) the final disposition under section 626.556 or 626.557 
527.9   was substantiated maltreatment; and 
527.10     (ii) the maltreatment was recurring or serious; or 
527.11  substantiated serious or recurring maltreatment of a minor under 
527.12  section 626.556 or of a vulnerable adult under section 626.557 
527.13  for which there is a preponderance of evidence that the 
527.14  maltreatment occurred, and that the subject was responsible for 
527.15  the maltreatment.  If the disqualification is affirmed, the 
527.16  state human services referee shall determine whether the 
527.17  individual poses a risk of harm in accordance with the 
527.18  requirements of section 245A.04, subdivision 3b. 
527.19     The state human services referee shall recommend an order 
527.20  to the commissioner of health or human services, as applicable, 
527.21  who shall issue a final order.  The commissioner shall affirm, 
527.22  reverse, or modify the final disposition.  Any order of the 
527.23  commissioner issued in accordance with this subdivision is 
527.24  conclusive upon the parties unless appeal is taken in the manner 
527.25  provided in subdivision 7.  Except as provided under section 
527.26  245A.04, subdivisions 3b, paragraphs (e) and (f); and 3c, in any 
527.27  licensing appeal under chapter 245A and sections 144.50 to 
527.28  144.58 and 144A.02 to 144A.46, the commissioner's determination 
527.29  as to maltreatment is conclusive. 
527.30     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
527.31     Sec. 17.  Minnesota Statutes 2000, section 256.045, 
527.32  subdivision 4, is amended to read: 
527.33     Subd. 4.  [CONDUCT OF HEARINGS.] (a) All hearings held 
527.34  pursuant to subdivision 3, 3a, 3b, or 4a shall be conducted 
527.35  according to the provisions of the federal Social Security Act 
527.36  and the regulations implemented in accordance with that act to 
528.1   enable this state to qualify for federal grants-in-aid, and 
528.2   according to the rules and written policies of the commissioner 
528.3   of human services.  County agencies shall install equipment 
528.4   necessary to conduct telephone hearings.  A state human services 
528.5   referee may schedule a telephone conference hearing when the 
528.6   distance or time required to travel to the county agency offices 
528.7   will cause a delay in the issuance of an order, or to promote 
528.8   efficiency, or at the mutual request of the parties.  Hearings 
528.9   may be conducted by telephone conferences unless the applicant, 
528.10  recipient, former recipient, person, or facility contesting 
528.11  maltreatment objects.  The hearing shall not be held earlier 
528.12  than five days after filing of the required notice with the 
528.13  county or state agency.  The state human services referee shall 
528.14  notify all interested persons of the time, date, and location of 
528.15  the hearing at least five days before the date of the hearing.  
528.16  Interested persons may be represented by legal counsel or other 
528.17  representative of their choice, including a provider of therapy 
528.18  services, at the hearing and may appear personally, testify and 
528.19  offer evidence, and examine and cross-examine witnesses.  The 
528.20  applicant, recipient, former recipient, person, or facility 
528.21  contesting maltreatment shall have the opportunity to examine 
528.22  the contents of the case file and all documents and records to 
528.23  be used by the county or state agency at the hearing at a 
528.24  reasonable time before the date of the hearing and during the 
528.25  hearing.  In hearings under subdivision 3, paragraph (a), 
528.26  clauses (4) and, (8), and (9), either party may subpoena the 
528.27  private data relating to the investigation prepared by the 
528.28  agency under section 626.556 or 626.557 that is not otherwise 
528.29  accessible under section 13.04, provided the identity of the 
528.30  reporter may not be disclosed. 
528.31     (b) The private data obtained by subpoena in a hearing 
528.32  under subdivision 3, paragraph (a), clause (4) or, (8), or (9), 
528.33  must be subject to a protective order which prohibits its 
528.34  disclosure for any other purpose outside the hearing provided 
528.35  for in this section without prior order of the district court.  
528.36  Disclosure without court order is punishable by a sentence of 
529.1   not more than 90 days imprisonment or a fine of not more than 
529.2   $700, or both.  These restrictions on the use of private data do 
529.3   not prohibit access to the data under section 13.03, subdivision 
529.4   6.  Except for appeals under subdivision 3, paragraph (a), 
529.5   clauses (4), (5), and (8), and (9), upon request, the county 
529.6   agency shall provide reimbursement for transportation, child 
529.7   care, photocopying, medical assessment, witness fee, and other 
529.8   necessary and reasonable costs incurred by the applicant, 
529.9   recipient, or former recipient in connection with the appeal.  
529.10  All evidence, except that privileged by law, commonly accepted 
529.11  by reasonable people in the conduct of their affairs as having 
529.12  probative value with respect to the issues shall be submitted at 
529.13  the hearing and such hearing shall not be "a contested case" 
529.14  within the meaning of section 14.02, subdivision 3.  The agency 
529.15  must present its evidence prior to or at the hearing, and may 
529.16  not submit evidence after the hearing except by agreement of the 
529.17  parties at the hearing, provided the petitioner has the 
529.18  opportunity to respond. 
529.19     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
529.20     Sec. 18.  Minnesota Statutes 2000, section 626.556, 
529.21  subdivision 3, is amended to read: 
529.22     Subd. 3.  [PERSONS MANDATED TO REPORT.] (a) A person who 
529.23  knows or has reason to believe a child is being neglected or 
529.24  physically or sexually abused, as defined in subdivision 2, or 
529.25  has been neglected or physically or sexually abused within the 
529.26  preceding three years, shall immediately report the information 
529.27  to the local welfare agency, agency responsible for assessing or 
529.28  investigating the report, police department, or the county 
529.29  sheriff if the person is:  
529.30     (1) a professional or professional's delegate who is 
529.31  engaged in the practice of the healing arts, social services, 
529.32  hospital administration, psychological or psychiatric treatment, 
529.33  child care, education, or law enforcement; or 
529.34     (2) employed as a member of the clergy and received the 
529.35  information while engaged in ministerial duties, provided that a 
529.36  member of the clergy is not required by this subdivision to 
530.1   report information that is otherwise privileged under section 
530.2   595.02, subdivision 1, paragraph (c).  
530.3      The police department or the county sheriff, upon receiving 
530.4   a report, shall immediately notify the local welfare agency or 
530.5   agency responsible for assessing or investigating the report, 
530.6   orally and in writing.  The local welfare agency, or agency 
530.7   responsible for assessing or investigating the report, upon 
530.8   receiving a report, shall immediately notify the local police 
530.9   department or the county sheriff orally and in writing.  The 
530.10  county sheriff and the head of every local welfare agency, 
530.11  agency responsible for assessing or investigating reports, and 
530.12  police department shall each designate a person within their 
530.13  agency, department, or office who is responsible for ensuring 
530.14  that the notification duties of this paragraph and paragraph (b) 
530.15  are carried out.  Nothing in this subdivision shall be construed 
530.16  to require more than one report from any institution, facility, 
530.17  school, or agency. 
530.18     (b) Any person may voluntarily report to the local welfare 
530.19  agency, agency responsible for assessing or investigating the 
530.20  report, police department, or the county sheriff if the person 
530.21  knows, has reason to believe, or suspects a child is being or 
530.22  has been neglected or subjected to physical or sexual abuse.  
530.23  The police department or the county sheriff, upon receiving a 
530.24  report, shall immediately notify the local welfare agency or 
530.25  agency responsible for assessing or investigating the report, 
530.26  orally and in writing.  The local welfare agency or agency 
530.27  responsible for assessing or investigating the report, upon 
530.28  receiving a report, shall immediately notify the local police 
530.29  department or the county sheriff orally and in writing. 
530.30     (c) A person mandated to report physical or sexual child 
530.31  abuse or neglect occurring within a licensed facility shall 
530.32  report the information to the agency specified under 
530.33  subdivisions 3b and 3c as responsible for licensing 
530.34  the assessing or investigating a facility licensed under 
530.35  sections 144.50 to 144.58; a facility licensed under section 
530.36  241.021; 245A.01 to 245A.16; or 245B, or a facility licensed 
531.1   under chapter 245A; a school as defined in sections section 
531.2   120A.05, subdivisions 9, 11, and 13; and, or section 124D.10; or 
531.3   a nonlicensed personal care provider organization as defined 
531.4   in sections section 256B.04, subdivision 16; and, or section 
531.5   256B.0625, subdivision 19.  A health or corrections An agency 
531.6   receiving a report may request the local welfare agency to 
531.7   provide assistance pursuant to subdivisions 10, 10a, and 10b. 
531.8      (d) Any person mandated to report shall receive a summary 
531.9   of the disposition of any report made by that reporter, 
531.10  including whether the case has been opened for child protection 
531.11  or other services, or if a referral has been made to a community 
531.12  organization, unless release would be detrimental to the best 
531.13  interests of the child.  Any person who is not mandated to 
531.14  report shall, upon request to the local welfare agency, receive 
531.15  a concise summary of the disposition of any report made by that 
531.16  reporter, unless release would be detrimental to the best 
531.17  interests of the child. 
531.18     (e) For purposes of this subdivision, "immediately" means 
531.19  as soon as possible but in no event longer than 24 hours. 
531.20     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
531.21     Sec. 19.  Minnesota Statutes 2000, section 626.556, 
531.22  subdivision 3c, is amended to read: 
531.23     Subd. 3c.  [AGENCY RESPONSIBLE FOR ASSESSING OR 
531.24  INVESTIGATING REPORTS OF MALTREATMENT.] The following agencies 
531.25  are the administrative agencies responsible for assessing or 
531.26  investigating reports of alleged child maltreatment in 
531.27  facilities made under this section: 
531.28     (1) the county local welfare agency is the agency 
531.29  responsible for assessing or investigating allegations of 
531.30  maltreatment in child foster care, family child care, and 
531.31  legally unlicensed child care and; 
531.32     (2) the department of human services is the agency 
531.33  responsible for assessing or investigating allegations of 
531.34  maltreatment in juvenile correctional facilities licensed under 
531.35  section 241.021 located in the local welfare agency's county; 
531.36     (2) (3) the department of human services is the agency 
532.1   responsible for assessing or investigating allegations of 
532.2   maltreatment in facilities licensed under chapters 245A and 
532.3   245B, except for child foster care and family child care; and 
532.4      (3) (4) the department of health is the agency responsible 
532.5   for assessing or investigating allegations of child maltreatment 
532.6   in facilities licensed under sections 144.50 to 144.58, and in 
532.7   unlicensed home health care. 
532.8      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
532.9      Sec. 20.  Minnesota Statutes 2000, section 626.556, 
532.10  subdivision 10b, is amended to read: 
532.11     Subd. 10b.  [DUTIES OF COMMISSIONER; NEGLECT OR ABUSE IN 
532.12  FACILITY.] (a) This section applies to the commissioners of 
532.13  human services, health, and children, families, and learning.  
532.14  The commissioner of the agency responsible for assessing or 
532.15  investigating the report shall immediately investigate if the 
532.16  report alleges that: 
532.17     (1) a child who is in the care of a facility as defined in 
532.18  subdivision 2 is neglected, physically abused, or sexually 
532.19  abused by an individual in that facility, or has been so 
532.20  neglected or abused by an individual in that facility within the 
532.21  three years preceding the report; or 
532.22     (2) a child was neglected, physically abused, or sexually 
532.23  abused by an individual in a facility defined in subdivision 2, 
532.24  while in the care of that facility within the three years 
532.25  preceding the report.  
532.26     The commissioner of the agency responsible for assessing or 
532.27  investigating the report shall arrange for the transmittal to 
532.28  the commissioner of reports received by local agencies and may 
532.29  delegate to a local welfare agency the duty to investigate 
532.30  reports.  In conducting an investigation under this section, the 
532.31  commissioner has the powers and duties specified for local 
532.32  welfare agencies under this section.  The commissioner of the 
532.33  agency responsible for assessing or investigating the report or 
532.34  local welfare agency may interview any children who are or have 
532.35  been in the care of a facility under investigation and their 
532.36  parents, guardians, or legal custodians. 
533.1      (b) Prior to any interview, the commissioner of the agency 
533.2   responsible for assessing or investigating the report or local 
533.3   welfare agency shall notify the parent, guardian, or legal 
533.4   custodian of a child who will be interviewed in the manner 
533.5   provided for in subdivision 10d, paragraph (a).  If reasonable 
533.6   efforts to reach the parent, guardian, or legal custodian of a 
533.7   child in an out-of-home placement have failed, the child may be 
533.8   interviewed if there is reason to believe the interview is 
533.9   necessary to protect the child or other children in the 
533.10  facility.  The commissioner of the agency responsible for 
533.11  assessing or investigating the report or local agency must 
533.12  provide the information required in this subdivision to the 
533.13  parent, guardian, or legal custodian of a child interviewed 
533.14  without parental notification as soon as possible after the 
533.15  interview.  When the investigation is completed, any parent, 
533.16  guardian, or legal custodian notified under this subdivision 
533.17  shall receive the written memorandum provided for in subdivision 
533.18  10d, paragraph (c). 
533.19     (c) In conducting investigations under this subdivision the 
533.20  commissioner or local welfare agency responsible for assessing 
533.21  or investigating the report shall obtain be given access to 
533.22  information consistent with subdivision 10, paragraphs (g), (h), 
533.23  (i), and (j), and shall be granted the same access to the 
533.24  facility as the facility's licensing agency under the 
533.25  corresponding facility licensing statute.  A facility that 
533.26  denies the investigating agency access to this information shall 
533.27  be subject to a negative licensing action by the appropriate 
533.28  licensing agency.  When the agency responsible for assessing or 
533.29  investigating a report under this section and the licensing 
533.30  agency for the facility involved are not the same agency, the 
533.31  investigating agency and the licensing agency may share not 
533.32  public data as necessary to complete the investigation or to 
533.33  determine appropriate licensing action. 
533.34     (d) Except for foster care and family child care, the 
533.35  commissioner has the primary responsibility for the 
533.36  investigations and notifications required under subdivisions 10d 
534.1   and 10f for reports that allege maltreatment related to the care 
534.2   provided by or in facilities licensed by the commissioner.  The 
534.3   commissioner may request assistance from the local social 
534.4   services agency. 
534.5      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
534.6      Sec. 21.  Minnesota Statutes 2000, section 626.556, 
534.7   subdivision 10i, is amended to read: 
534.8      Subd. 10i.  [ADMINISTRATIVE RECONSIDERATION OF FINAL 
534.9   DETERMINATION OF MALTREATMENT AND DISQUALIFICATION BASED ON 
534.10  SERIOUS OR RECURRING MALTREATMENT.] (a) Except as provided under 
534.11  paragraph (e), an individual or facility that the commissioner 
534.12  or a local social service agency determines has maltreated a 
534.13  child, or the child's designee, regardless of the determination, 
534.14  who contests the investigating agency's final determination 
534.15  regarding maltreatment, may request the investigating agency to 
534.16  reconsider its final determination regarding maltreatment.  The 
534.17  request for reconsideration must be submitted in writing to the 
534.18  investigating agency within 15 calendar days after receipt of 
534.19  notice of the final determination regarding maltreatment.  An 
534.20  individual who was determined to have maltreated a child under 
534.21  this section and who was disqualified on the basis of serious or 
534.22  recurring maltreatment under section 245A.04, subdivision 3d, 
534.23  may request reconsideration of the maltreatment determination 
534.24  and the disqualification.  The request for reconsideration of 
534.25  the maltreatment determination and the disqualification must be 
534.26  submitted within 30 calendar days of the individual's receipt of 
534.27  the notice of disqualification under section 245A.04, 
534.28  subdivision 3a. 
534.29     (b) Except as provided under paragraphs (e) and (f), if the 
534.30  investigating agency denies the request or fails to act upon the 
534.31  request within 15 calendar days after receiving the request for 
534.32  reconsideration, the person or facility entitled to a fair 
534.33  hearing under section 256.045 may submit to the commissioner of 
534.34  human services a written request for a hearing under that 
534.35  section. 
534.36     (c) If, as a result of the reconsideration, the 
535.1   investigating agency changes the final determination of 
535.2   maltreatment, that agency shall notify the parties specified in 
535.3   subdivisions 10b, 10d, and 10f. 
535.4      (d) Except as provided under paragraph (f), if an 
535.5   individual or facility contests the investigating agency's final 
535.6   determination regarding maltreatment by requesting a fair 
535.7   hearing under section 256.045, the commissioner of human 
535.8   services shall assure that the hearing is conducted and a 
535.9   decision is reached within 90 days of receipt of the request for 
535.10  a hearing.  The time for action on the decision may be extended 
535.11  for as many days as the hearing is postponed or the record is 
535.12  held open for the benefit of either party. 
535.13     (e) If an individual was disqualified under section 
535.14  245A.04, subdivision 3d, on the basis of a determination of 
535.15  maltreatment, which was serious or recurring, and the individual 
535.16  has requested reconsideration of the maltreatment determination 
535.17  under paragraph (a) and requested reconsideration of the 
535.18  disqualification under section 245A.04, subdivision 3b, 
535.19  reconsideration of the maltreatment determination and 
535.20  reconsideration of the disqualification shall be consolidated 
535.21  into a single reconsideration.  If an individual disqualified on 
535.22  the basis of a determination of maltreatment, which was serious 
535.23  or recurring requests a fair hearing under paragraph (b), the 
535.24  scope of the fair hearing shall include the maltreatment 
535.25  determination and the disqualification. 
535.26     (f) If a maltreatment determination or a disqualification 
535.27  based on serious or recurring maltreatment is the basis for a 
535.28  denial of a license under section 245A.05 or a licensing 
535.29  sanction under section 245A.07, the license holder has the right 
535.30  to a contested case hearing under chapter 14 and Minnesota 
535.31  Rules, parts 1400.8510 to 1400.8612 and successor rules.  As 
535.32  provided for under section 245A.08, subdivision 2a, the scope of 
535.33  the contested case hearing shall include the maltreatment 
535.34  determination, disqualification, and licensing sanction or 
535.35  denial of a license.  In such cases, a fair hearing regarding 
535.36  the maltreatment determination shall not be conducted under 
536.1   paragraph (b).  If the disqualified subject is an individual 
536.2   other than the license holder and upon whom a background study 
536.3   must be conducted under section 245A.04, subdivision 3, the 
536.4   hearings of all parties may be consolidated into a single 
536.5   contested case hearing upon consent of all parties and the 
536.6   administrative law judge. 
536.7      <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
536.8      Sec. 22.  Minnesota Statutes 2000, section 626.557, 
536.9   subdivision 3, is amended to read: 
536.10     Subd. 3.  [TIMING OF REPORT.] (a) A mandated reporter who 
536.11  has reason to believe that a vulnerable adult is being or has 
536.12  been maltreated, or who has knowledge that a vulnerable adult 
536.13  has sustained a physical injury which is not reasonably 
536.14  explained shall immediately report the information to the common 
536.15  entry point.  If an individual is a vulnerable adult solely 
536.16  because the individual is admitted to a facility, a mandated 
536.17  reporter is not required to report suspected maltreatment of the 
536.18  individual that occurred prior to admission, unless: 
536.19     (1) the individual was admitted to the facility from 
536.20  another facility and the reporter has reason to believe the 
536.21  vulnerable adult was maltreated in the previous facility; or 
536.22     (2) the reporter knows or has reason to believe that the 
536.23  individual is a vulnerable adult as defined in section 626.5572, 
536.24  subdivision 21, clause (4).  
536.25     (b) A person not required to report under the provisions of 
536.26  this section may voluntarily report as described above.  
536.27     (c) Nothing in this section requires a report of known or 
536.28  suspected maltreatment, if the reporter knows or has reason to 
536.29  know that a report has been made to the common entry point. 
536.30     (d) Nothing in this section shall preclude a reporter from 
536.31  also reporting to a law enforcement agency.  
536.32     (e) A mandated reporter who knows or has reason to believe 
536.33  that an error under section 626.5572, subdivision 17, paragraph 
536.34  (c), clause (5), occurred must make a report under this 
536.35  subdivision.  If the reporter or a facility, at any time 
536.36  believes that an investigation by a lead agency will determine 
537.1   or should determine that the reported error was not neglect 
537.2   according to the criteria under section 626.5572, subdivision 
537.3   17, paragraph (c), clause (5), the reporter or facility may 
537.4   provide to the common entry point or directly to the lead agency 
537.5   information explaining how the event meets the criteria under 
537.6   section 626.5572, subdivision 17, paragraph (c), clause (5).  
537.7   The lead agency shall consider this information when making an 
537.8   initial disposition of the report under subdivision 9c. 
537.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
537.10  following final enactment. 
537.11     Sec. 23.  Minnesota Statutes 2000, section 626.557, 
537.12  subdivision 9d, is amended to read: 
537.13     Subd. 9d.  [ADMINISTRATIVE RECONSIDERATION OF FINAL 
537.14  DISPOSITION OF MALTREATMENT AND DISQUALIFICATION BASED ON 
537.15  SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] (a) Except as 
537.16  provided under paragraph (e), any individual or facility which a 
537.17  lead agency determines has maltreated a vulnerable adult, or the 
537.18  vulnerable adult or an interested person acting on behalf of the 
537.19  vulnerable adult, regardless of the lead agency's determination, 
537.20  who contests the lead agency's final disposition of an 
537.21  allegation of maltreatment, may request the lead agency to 
537.22  reconsider its final disposition.  The request for 
537.23  reconsideration must be submitted in writing to the lead agency 
537.24  within 15 calendar days after receipt of notice of final 
537.25  disposition or, if the request is made by an interested person 
537.26  who is not entitled to notice, within 15 days after receipt of 
537.27  the notice by the vulnerable adult or the vulnerable adult's 
537.28  legal guardian.  An individual who was determined to have 
537.29  maltreated a vulnerable adult under this section and who was 
537.30  disqualified on the basis of serious or recurring maltreatment 
537.31  under section 245A.04, subdivision 3d, may request 
537.32  reconsideration of the maltreatment determination and the 
537.33  disqualification.  The request for reconsideration of the 
537.34  maltreatment determination and the disqualification must be 
537.35  submitted within 30 calendar days of the individual's receipt of 
537.36  the notice of disqualification under section 245A.04, 
538.1   subdivision 3a. 
538.2      (b) Except as provided under paragraphs (e) and (f), if the 
538.3   lead agency denies the request or fails to act upon the request 
538.4   within 15 calendar days after receiving the request for 
538.5   reconsideration, the person or facility entitled to a fair 
538.6   hearing under section 256.045, may submit to the commissioner of 
538.7   human services a written request for a hearing under that 
538.8   statute.  The vulnerable adult, or an interested person acting 
538.9   on behalf of the vulnerable adult, may request a review by the 
538.10  vulnerable adult maltreatment review panel under section 256.021 
538.11  if the lead agency denies the request or fails to act upon the 
538.12  request, or if the vulnerable adult or interested person 
538.13  contests a reconsidered disposition.  The lead agency shall 
538.14  notify persons who request reconsideration of their rights under 
538.15  this paragraph.  The request must be submitted in writing to the 
538.16  review panel and a copy sent to the lead agency within 30 
538.17  calendar days of receipt of notice of a denial of a request for 
538.18  reconsideration or of a reconsidered disposition.  The request 
538.19  must specifically identify the aspects of the agency 
538.20  determination with which the person is dissatisfied.  
538.21     (c) If, as a result of a reconsideration or review, the 
538.22  lead agency changes the final disposition, it shall notify the 
538.23  parties specified in subdivision 9c, paragraph (d). 
538.24     (d) For purposes of this subdivision, "interested person 
538.25  acting on behalf of the vulnerable adult" means a person 
538.26  designated in writing by the vulnerable adult to act on behalf 
538.27  of the vulnerable adult, or a legal guardian or conservator or 
538.28  other legal representative, a proxy or health care agent 
538.29  appointed under chapter 145B or 145C, or an individual who is 
538.30  related to the vulnerable adult, as defined in section 245A.02, 
538.31  subdivision 13. 
538.32     (e) If an individual was disqualified under section 
538.33  245A.04, subdivision 3d, on the basis of a determination of 
538.34  maltreatment, which was serious or recurring, and the individual 
538.35  has requested reconsideration of the maltreatment determination 
538.36  under paragraph (a) and reconsideration of the disqualification 
539.1   under section 245A.04, subdivision 3b, reconsideration of the 
539.2   maltreatment determination and requested reconsideration of the 
539.3   disqualification shall be consolidated into a single 
539.4   reconsideration.  If an individual who was disqualified on the 
539.5   basis of serious or recurring maltreatment requests a fair 
539.6   hearing under paragraph (b), the scope of the fair hearing shall 
539.7   include the maltreatment determination and the disqualification. 
539.8      (f) If a maltreatment determination or a disqualification 
539.9   based on serious or recurring maltreatment is the basis for a 
539.10  denial of a license under section 245A.05 or a licensing 
539.11  sanction under section 245A.07, the license holder has the right 
539.12  to a contested case hearing under chapter 14 and Minnesota 
539.13  Rules, parts 1400.8510 to 1400.8612 and successor rules.  As 
539.14  provided for under section 245A.08, the scope of the contested 
539.15  case hearing shall include the maltreatment determination, 
539.16  disqualification, and licensing sanction or denial of a 
539.17  license.  In such cases, a fair hearing shall not be conducted 
539.18  under paragraph (b).  If the disqualified subject is an 
539.19  individual other than the license holder and upon whom a 
539.20  background study must be conducted under section 245A.04, 
539.21  subdivision 3, the hearings of all parties may be consolidated 
539.22  into a single contested case hearing upon consent of all parties 
539.23  and the administrative law judge. 
539.24     (g) Until August 1, 2002, an individual or facility that 
539.25  was determined by the commissioner of human services or the 
539.26  commissioner of health to be responsible for neglect under 
539.27  section 626.5572, subdivision 17, after October 1, 1995, and 
539.28  before August 1, 2001, that believes that the finding of neglect 
539.29  does not meet an amended definition of neglect may request a 
539.30  reconsideration of the determination of neglect.  The 
539.31  commissioner of human services or the commissioner of health 
539.32  shall mail a notice to the last known address of individuals who 
539.33  are eligible to seek this reconsideration.  The request for 
539.34  reconsideration must state how the established findings no 
539.35  longer meet the elements of the definition of neglect.  The 
539.36  commissioner shall review the request for reconsideration and 
540.1   make a determination within 15 calendar days.  The 
540.2   commissioner's decision on this reconsideration is the final 
540.3   agency action. 
540.4      (1) For purposes of compliance with the data destruction 
540.5   schedule under subdivision 12b, paragraph (d), when a finding of 
540.6   substantiated maltreatment has been changed as a result of a 
540.7   reconsideration under this paragraph, the date of the original 
540.8   finding of a substantiated maltreatment must be used to 
540.9   calculate the destruction date. 
540.10     (2) For purposes of any background studies under section 
540.11  245A.04, when a determination of substantiated maltreatment has 
540.12  been changed as a result of a reconsideration under this 
540.13  paragraph, any prior disqualification of the individual under 
540.14  section 245A.04 that was based on this determination of 
540.15  maltreatment shall be rescinded, and for future background 
540.16  studies under section 245A.04 the commissioner must not use the 
540.17  previous determination of substantiated maltreatment as a basis 
540.18  for disqualification or as a basis for referring the 
540.19  individual's maltreatment history to a health-related licensing 
540.20  board under section 245A.04, subdivision 3d, paragraph (b). 
540.21     <b>[EFFECTIVE DATE.]</b> Paragraph (g) of this section is 
540.22  effective the day following final enactment.  Paragraphs (a), 
540.23  (b), (e), and (f) are effective January 1, 2002. 
540.24     Sec. 24.  Minnesota Statutes 2000, section 626.5572, 
540.25  subdivision 17, is amended to read: 
540.26     Subd. 17.  [NEGLECT.] "Neglect" means:  
540.27     (a) The failure or omission by a caregiver to supply a 
540.28  vulnerable adult with care or services, including but not 
540.29  limited to, food, clothing, shelter, health care, or supervision 
540.30  which is: 
540.31     (1) reasonable and necessary to obtain or maintain the 
540.32  vulnerable adult's physical or mental health or safety, 
540.33  considering the physical and mental capacity or dysfunction of 
540.34  the vulnerable adult; and 
540.35     (2) which is not the result of an accident or therapeutic 
540.36  conduct. 
541.1      (b) The absence or likelihood of absence of care or 
541.2   services, including but not limited to, food, clothing, shelter, 
541.3   health care, or supervision necessary to maintain the physical 
541.4   and mental health of the vulnerable adult which a reasonable 
541.5   person would deem essential to obtain or maintain the vulnerable 
541.6   adult's health, safety, or comfort considering the physical or 
541.7   mental capacity or dysfunction of the vulnerable adult. 
541.8      (c) For purposes of this section, a vulnerable adult is not 
541.9   neglected for the sole reason that: 
541.10     (1) the vulnerable adult or a person with authority to make 
541.11  health care decisions for the vulnerable adult under sections 
541.12  144.651, 144A.44, chapter 145B, 145C, or 252A, or section 
541.13  253B.03, or 525.539 to 525.6199, refuses consent or withdraws 
541.14  consent, consistent with that authority and within the boundary 
541.15  of reasonable medical practice, to any therapeutic conduct, 
541.16  including any care, service, or procedure to diagnose, maintain, 
541.17  or treat the physical or mental condition of the vulnerable 
541.18  adult, or, where permitted under law, to provide nutrition and 
541.19  hydration parenterally or through intubation; this paragraph 
541.20  does not enlarge or diminish rights otherwise held under law by: 
541.21     (i) a vulnerable adult or a person acting on behalf of a 
541.22  vulnerable adult, including an involved family member, to 
541.23  consent to or refuse consent for therapeutic conduct; or 
541.24     (ii) a caregiver to offer or provide or refuse to offer or 
541.25  provide therapeutic conduct; or 
541.26     (2) the vulnerable adult, a person with authority to make 
541.27  health care decisions for the vulnerable adult, or a caregiver 
541.28  in good faith selects and depends upon spiritual means or prayer 
541.29  for treatment or care of disease or remedial care of the 
541.30  vulnerable adult in lieu of medical care, provided that this is 
541.31  consistent with the prior practice or belief of the vulnerable 
541.32  adult or with the expressed intentions of the vulnerable adult; 
541.33     (3) the vulnerable adult, who is not impaired in judgment 
541.34  or capacity by mental or emotional dysfunction or undue 
541.35  influence, engages in sexual contact with:  
541.36     (i) a person including a facility staff person when a 
542.1   consensual sexual personal relationship existed prior to the 
542.2   caregiving relationship; or 
542.3      (ii) a personal care attendant, regardless of whether the 
542.4   consensual sexual personal relationship existed prior to the 
542.5   caregiving relationship; or 
542.6      (4) an individual makes an error in the provision of 
542.7   therapeutic conduct to a vulnerable adult which:  (i) does not 
542.8   result in injury or harm which reasonably requires medical or 
542.9   mental health care; or, if it reasonably requires care, 
542.10     (5) an individual makes an error in the provision of 
542.11  therapeutic conduct to a vulnerable adult that results in injury 
542.12  or harm which reasonably requires the care of a physician; and: 
542.13     (i) the necessary care is sought and provided in a timely 
542.14  fashion as dictated by the condition of the vulnerable adult; 
542.15  and (ii) the injury or harm that required care does not result 
542.16  in substantial acute, or chronic injury or illness, or permanent 
542.17  disability above and beyond the vulnerable adult's preexisting 
542.18  condition; 
542.19     (ii) is (iii) the error is not part of a pattern of errors 
542.20  by the individual; 
542.21     (iv) if in a facility, the error is immediately reported as 
542.22  required under section 626.557, and recorded internally by the 
542.23  employee or person providing services in the facility in order 
542.24  to evaluate and identify corrective action; 
542.25     (v) if in a facility, the facility identifies and takes 
542.26  corrective action and implements measures designed to reduce the 
542.27  risk of further occurrence of this error and similar errors; and 
542.28     (iii) is (vi) if in a facility, the actions required under 
542.29  items (iv) and (v) are sufficiently documented for review and 
542.30  evaluation by the facility and any applicable licensing, 
542.31  certification, and ombudsman agency; and. 
542.32     (iv) is not part of a pattern of errors by the individual. 
542.33     (d) Nothing in this definition requires a caregiver, if 
542.34  regulated, to provide services in excess of those required by 
542.35  the caregiver's license, certification, registration, or other 
542.36  regulation. 
543.1      (e) If the findings of an investigation by a lead agency 
543.2   result in a determination of substantiated maltreatment for the 
543.3   sole reason that the actions required of a facility under 
543.4   paragraph (c), clause (5), item (iv), (v), or (vi), were not 
543.5   taken, then the facility is subject to a correction order.  This 
543.6   must not alter the lead agency's determination of mitigating 
543.7   factors under section 626.557, subdivision 9c, paragraph (c). 
543.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
543.9   following final enactment. 
543.10     Sec. 25.  [FEDERAL LAW CHANGE REQUEST OR WAIVER.] 
543.11     The commissioner of health or human services, whichever is 
543.12  appropriate, shall pursue changes to federal law necessary to 
543.13  allow greater discretion on disciplinary activities of 
543.14  unlicensed health care workers and apply for necessary federal 
543.15  waivers or approval that would allow for a set-aside process 
543.16  related to disqualifications for nurse aides in nursing homes by 
543.17  July 1, 2002. 
543.18     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
543.19     Sec. 26.  [WAIVER FROM FEDERAL RULES AND REGULATIONS.] 
543.20     By January 2002, the commissioner of health shall work with 
543.21  providers to examine federal rules and regulations prohibiting 
543.22  neglect, abuse, and financial exploitation of residents in 
543.23  licensed nursing facilities and shall apply for federal waivers 
543.24  to: 
543.25     (1) allow the use of Minnesota Statutes, section 626.5572, 
543.26  to control the identification and prevention of maltreatment of 
543.27  residents in licensed nursing facilities, rather than the 
543.28  definitions under federal rules and regulations; and 
543.29     (2) allow the use of Minnesota Statutes, sections 214.104, 
543.30  245A.04, and 626.557 to control the disqualification or 
543.31  discipline of any persons providing services to residents in 
543.32  licensed nursing facilities, rather than the nurse aide registry 
543.33  or other exclusionary provisions of federal rules and 
543.34  regulations. 
543.35     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
543.36                             ARTICLE 12 
544.1                            MISCELLANEOUS 
544.2      Section 1.  Minnesota Statutes 2000, section 144.1222, is 
544.3   amended by adding a subdivision to read: 
544.4      Subd. 2a.  [POOLS AT FAMILY DAY CARE OR GROUP FAMILY DAY 
544.5   CARE HOMES.] Notwithstanding Minnesota Rules, part 4717.0250, 
544.6   subpart 8, a pool that is located at a family day care or group 
544.7   family day care home licensed under Minnesota Rules, chapter 
544.8   9502, shall not be considered a public pool, and is exempt from 
544.9   the requirements for public pools in Minnesota Rules, parts 
544.10  4717.0150 to 4717.3975.  If the provider chooses to allow 
544.11  children cared for at the family day care or group family day 
544.12  care home to use the pool located at the home, the provider must 
544.13  satisfy the requirements in section 245A.14, subdivision 10.  
544.14     Sec. 2.  Minnesota Statutes 2000, section 245A.14, is 
544.15  amended by adding a subdivision to read: 
544.16     Subd. 10.  [SWIMMING POOLS; FAMILY DAY CARE AND GROUP 
544.17  FAMILY DAY CARE PROVIDERS.] (a) This subdivision governs pools 
544.18  located at family day care or group family day care homes 
544.19  licensed under Minnesota Rules, chapter 9502.  This subdivision 
544.20  does not apply to portable wading pools or whirlpools located at 
544.21  family day care or group family day care homes licensed under 
544.22  Minnesota Rules, chapter 9502.  For a provider to be eligible to 
544.23  allow a child cared for at the family day care or group family 
544.24  day care home to use the pool located at the home, the provider 
544.25  must not have had a licensing sanction under section 245A.07 or 
544.26  a correction order or fine under section 245A.06 relating to the 
544.27  supervision or health and safety of children substantiated by 
544.28  the county agency during the prior 24 months, and must satisfy 
544.29  the following requirements: 
544.30     (1) obtain written consent from a child's parent or legal 
544.31  guardian allowing the child to use the pool, and renew the 
544.32  parent's or legal guardian's written consent at least annually.  
544.33  The written consent must include a statement that the parent or 
544.34  legal guardian has received and read materials provided by the 
544.35  department of health to the department of human services for 
544.36  distribution to all family day care or group family day care 
545.1   homes related to the risk of disease transmission as well as 
545.2   other health risks associated with swimming pools.  The written 
545.3   consent must also include a statement that the department of 
545.4   health and county agency will not monitor or inspect the 
545.5   provider's swimming pool to ensure compliance with the 
545.6   requirements in this subdivision; 
545.7      (2) enter into a written contract with a child's parent or 
545.8   legal guardian, and renew the written contract annually.  The 
545.9   terms of the written contract must specify that the provider 
545.10  agrees to perform all of the requirements in this subdivision; 
545.11     (3) attend and successfully complete a pool operator 
545.12  training course once every five years.  Acceptable training 
545.13  courses are: 
545.14     (i) the National Swimming Pool Foundation Certified Pool 
545.15  Operator course; 
545.16     (ii) the National Spa and Pool Institute Tech I and Tech II 
545.17  courses (both required); or 
545.18     (iii) the National Recreation and Park Association Aquatic 
545.19  Facility Operator course; 
545.20     (4) require a caregiver trained in first aid and adult and 
545.21  child cardiopulmonary resuscitation to supervise and be present 
545.22  at the pool with any children in the pool; 
545.23     (5) toilet all potty-trained children before they enter the 
545.24  pool; 
545.25     (6) require all children who are not potty-trained to wear 
545.26  swim diapers while in the pool; 
545.27     (7) if fecal material enters the pool water, add three 
545.28  times the normal shock treatment to the pool water to raise the 
545.29  chlorine level to at least 20 parts per million, and close the 
545.30  pool to swimming for the 24 hours following the entrance of 
545.31  fecal material into the water or until the water pH and 
545.32  disinfectant concentration levels have returned to the standards 
545.33  specified in clause (9), whichever is later; 
545.34     (8) prevent any child from entering the pool who has an 
545.35  open wound or any child who has or is suspected of having a 
545.36  communicable disease; 
546.1      (9) maintain the pool water at a pH of not less than 7.2 
546.2   and not more than 8.0, maintain the disinfectant concentration 
546.3   between two and five parts per million for chlorine or between 
546.4   2.3 and 4.5 parts per million for bromine, and maintain a daily 
546.5   record of the pool's operation with pH and disinfectant 
546.6   concentration readings on days when children cared for at the 
546.7   family day care or group family day care home are present; 
546.8      (10) have a disinfectant feeder or feeders; 
546.9      (11) have a recirculation system that will clarify and 
546.10  disinfect the pool volume of water in ten hours or less; 
546.11     (12) maintain the pool's water clarity so that an object on 
546.12  the pool floor at the pool's deepest point is easily visible; 
546.13     (13) have two or more suction lines in the pool; 
546.14     (14) have in place and enforce written safety rules and 
546.15  pool policies; 
546.16     (15) prohibit diving; 
546.17     (16) prohibit pushing or rough play in the pool area; 
546.18     (17) have in place at all times a safety rope that divides 
546.19  the shallow and deep portions of the pool; 
546.20     (18) satisfy any existing local ordinances regarding pool 
546.21  installation, decks, and fencing; 
546.22     (19) maintain a water temperature of not more than 104 
546.23  degrees Fahrenheit and not less than 70 degrees Fahrenheit; and 
546.24     (20) for lifesaving equipment, have a United States Coast 
546.25  Guard-approved life ring attached to a rope, an exit ladder, and 
546.26  a shepherd's hook available at all times to the caregiver 
546.27  supervising the pool. 
546.28     (b) A violation of this subdivision is grounds for a 
546.29  sanction under section 245A.07, or a correction order or fine 
546.30  under section 245A.06.  If a provider under this subdivision 
546.31  receives a licensing sanction or a correction order or fine 
546.32  relating to the supervision or health and safety of children, 
546.33  the provider is prohibited from allowing a child cared for at 
546.34  the family day care or group family day care home to continue to 
546.35  use the pool located at the home. 
546.36     Sec. 3.  Minnesota Statutes 2000, section 246.57, is 
547.1   amended by adding a subdivision to read: 
547.2      Subd. 7.  [SHARED SERVICES ACCOUNT.] Notwithstanding 
547.3   subdivision 1, beginning July 1, 2001, $6,000,000 each biennium 
547.4   is transferred from the shared services account into which 
547.5   receipts for shared services under subdivision 1 are deposited 
547.6   to the general fund.  This subdivision expires June 30, 2005. 
547.7      Sec. 4.  Minnesota Statutes 2000, section 252A.02, is 
547.8   amended by adding a subdivision to read: 
547.9      Subd. 3a.  [GUARDIANSHIP SERVICE PROVIDERS.] "Guardianship 
547.10  service providers" are individuals or agencies that meet the 
547.11  ethical conduct and best practice standards of the National 
547.12  Guardianship Association, meet the criminal background check 
547.13  requirements of section 245A.04, and do not provide any other 
547.14  services to the individuals for whom guardianship services are 
547.15  provided. 
547.16     Sec. 5.  Minnesota Statutes 2000, section 252A.02, 
547.17  subdivision 12, is amended to read: 
547.18     Subd. 12.  [COMPREHENSIVE EVALUATION.] "Comprehensive 
547.19  evaluation" shall consist of: 
547.20     (1) a medical report on the health status and physical 
547.21  condition of the proposed ward, prepared under the direction of 
547.22  a licensed physician; 
547.23     (2) a report on the proposed ward's intellectual capacity 
547.24  and functional abilities, specifying the tests and other data 
547.25  used in reaching its conclusions, prepared by a psychologist who 
547.26  is qualified in the diagnosis of mental retardation; and 
547.27     (3) a report from the case manager that includes: 
547.28     (i) the most current assessment of individual service needs 
547.29  as described in rules of the commissioner; 
547.30     (ii) the most current individual service plan as described 
547.31  in rules of the commissioner under section 256B.092, subdivision 
547.32  1b; and 
547.33     (iii) a description of contacts with and responses of near 
547.34  relatives of the proposed ward notifying them that a nomination 
547.35  for public guardianship has been made and advising them that 
547.36  they may seek private guardianship.  
548.1      Each report shall contain recommendations as to the amount 
548.2   of assistance and supervision required by the proposed ward to 
548.3   function as independently as possible in society.  To be 
548.4   considered part of the comprehensive evaluation, reports must be 
548.5   completed no more than one year before filing the petition under 
548.6   section 252A.05.  
548.7      Sec. 6.  Minnesota Statutes 2000, section 252A.02, 
548.8   subdivision 13, is amended to read: 
548.9      Subd. 13.  [CASE MANAGER.] "Case manager" means the person 
548.10  designated by the county board under rules of the commissioner 
548.11  to provide case management services under section 256B.092. 
548.12     Sec. 7.  Minnesota Statutes 2000, section 252A.111, 
548.13  subdivision 6, is amended to read: 
548.14     Subd. 6.  [SPECIAL DUTIES.] In exercising powers and duties 
548.15  under this chapter, the commissioner shall: 
548.16     (1) maintain close contact with the ward, visiting at least 
548.17  twice a year; 
548.18     (2) prohibit filming a ward in any way that would reveal 
548.19  the identity of the ward unless the commissioner determines the 
548.20  filming to be in the best interests of the ward.  The 
548.21  commissioner may give written consent for filming of the ward 
548.22  after permitting and encouraging input by the nearest relative 
548.23  protect and exercise the legal rights of the ward; 
548.24     (3) take actions and make decisions on behalf of the ward 
548.25  that encourage and allow the maximum level of independent 
548.26  functioning in a manner least restrictive of the ward's personal 
548.27  freedom consistent with the need for supervision and protection; 
548.28  and 
548.29     (4) permit and encourage maximum self-reliance on the part 
548.30  of the ward and permit and encourage input by the nearest 
548.31  relative of the ward in planning and decision making on behalf 
548.32  of the ward. 
548.33     Sec. 8.  Minnesota Statutes 2000, section 252A.16, 
548.34  subdivision 1, is amended to read: 
548.35     Subdivision 1.  [REVIEW REQUIRED.] The commissioner 
548.36  shall provide require an annual review of the physical, mental, 
549.1   and social adjustment and progress of every ward and 
549.2   conservatee.  A copy of this review shall be kept on file at the 
549.3   department of human services and may be inspected by the ward or 
549.4   conservatee, the ward's or conservatee's parents, spouse, or 
549.5   relatives and other persons who receive the permission of the 
549.6   commissioner.  The review shall contain information required 
549.7   under rules of the commissioner Minnesota Rules, part 9525.3065, 
549.8   subpart 1.  
549.9      Sec. 9.  Minnesota Statutes 2000, section 252A.19, 
549.10  subdivision 2, is amended to read: 
549.11     Subd. 2.  [PETITION.] The commissioner, ward, or any 
549.12  interested person may petition the appointing court or the court 
549.13  to which venue has been transferred for an order to remove the 
549.14  guardianship or to limit or expand the powers of the 
549.15  conservatorship or to appoint a guardian or conservator under 
549.16  sections 525.539 to 525.705 or to restore the ward or 
549.17  conservatee to full legal capacity or to review de novo any 
549.18  decision made by the public guardian or public conservator for 
549.19  or on behalf of a ward or conservatee or for any other order as 
549.20  the court may deem just and equitable.  Section 525.61, 
549.21  subdivision 3, does not apply to a petition to remove a public 
549.22  guardian. 
549.23     Sec. 10.  Minnesota Statutes 2000, section 252A.20, 
549.24  subdivision 1, is amended to read: 
549.25     Subdivision 1.  [WITNESS AND ATTORNEY FEES.] In each 
549.26  proceeding under sections 252A.01 to 252A.21, the court shall 
549.27  allow and order paid to each witness subpoenaed the fees and 
549.28  mileage prescribed by law; to each physician, psychologist, or 
549.29  social worker who assists in the preparation of the 
549.30  comprehensive evaluation and who is not in the employ of the 
549.31  local agency, or the state department of human services, or area 
549.32  mental health-mental retardation board, a reasonable sum for 
549.33  services and for travel; and to the ward's counsel, when 
549.34  appointed by the court, a reasonable sum for travel and for each 
549.35  day or portion of a day actually employed in court or actually 
549.36  consumed in preparing for the hearing.  Upon order the county 
550.1   auditor shall issue a warrant on the county treasurer for 
550.2   payment of the amount allowed. 
550.3      Sec. 11.  Minnesota Statutes 2000, section 256.482, 
550.4   subdivision 8, is amended to read: 
550.5      Subd. 8.  [SUNSET.] Notwithstanding section 15.059, 
550.6   subdivision 5, the council on disability shall not sunset until 
550.7   June 30, 2001 2005. 
550.8      Sec. 12.  [PUBLIC GUARDIANSHIP ALTERNATIVES.] 
550.9      The commissioner of human services shall provide county 
550.10  agencies with funds up to the amount appropriated for public 
550.11  guardianship alternatives based on proposals by the counties to 
550.12  establish private alternatives.  
550.13     Sec. 13.  [AUTOMATIC DEFIBRILLATOR STUDY.] 
550.14     The emergency medical services regulatory board, in 
550.15  consultation with the department of public safety, shall study 
550.16  and report to the legislature by December 15, 2002, regarding 
550.17  the availability of automatic defibrillators outside the 
550.18  seven-county metropolitan area.  The report shall include 
550.19  recommendations to make these devices accessible within a 
550.20  reasonable distance throughout the nonmetropolitan area, 
550.21  including recommendations for funding their acquisition and 
550.22  distribution. 
550.23     Sec. 14.  [REPEALER.] 
550.24     Minnesota Statutes 2000, section 252A.111, subdivision 3, 
550.25  is repealed. 
550.26                             ARTICLE 13 
550.27                           APPROPRIATIONS 
550.28  Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
550.29     The sums shown in the columns marked "APPROPRIATIONS" are 
550.30  appropriated from the general fund, or any other named fund, to 
550.31  the agencies and for the purposes specified in the following 
550.32  sections of this article, to be available for the fiscal years 
550.33  indicated for each purpose.  The figures "2002" and "2003" where 
550.34  used in this article, mean that the appropriation or 
550.35  appropriations listed under them are available for the fiscal 
550.36  year ending June 30, 2002, or June 30, 2003, respectively.  
551.1   Where a dollar amount appears in parentheses, it means a 
551.2   reduction of an appropriation.  
551.3                           SUMMARY BY FUND 
551.4   APPROPRIATIONS                                      BIENNIAL
551.5                             2002          2003           TOTAL
551.6   General          $3,083,573,000 $3,390,338,000 $6,473,911,000
551.7   State Government
551.8   Special Revenue      35,517,000     37,259,000     72,776,000
551.9   Health Care
551.10  Access              214,712,000    269,923,000    484,635,000
551.11  Federal TANF        318,103,000    277,420,000    595,523,000
551.12  Lottery Cash Flow     1,300,000      1,300,000      2,600,000
551.13  TOTAL            $3,653,205,000 $3,976,240,000 $7,629,445,000
551.14                                             APPROPRIATIONS 
551.15                                         Available for the Year 
551.16                                             Ending June 30 
551.17                                            2002         2003 
551.18  Sec. 2.  COMMISSIONER OF 
551.19  HUMAN SERVICES 
551.20  Subdivision 1.  Total 
551.21  Appropriation                     $3,468,138,000 $3,792,416,000
551.22                Summary by Fund
551.23  General           2,960,344,000 3,270,094,000
551.24  State Government
551.25  Special Revenue         507,000       507,000
551.26  Health Care 
551.27  Access              207,884,000   263,095,000
551.28  Federal TANF        298,103,000   257,420,000
551.29  Lottery Cash Flow     1,300,000     1,300,000
551.30  [APPROPRIATION FOR COURT-ORDERED MENTAL 
551.31  HEALTH TREATMENT.] Of the general fund 
551.32  appropriation, $2,289,000 in fiscal 
551.33  year 2002 and $2,289,000 in fiscal year 
551.34  2003 are for the cost of implementing 
551.35  H.F. 560, if enacted.  This 
551.36  appropriation is available only if H.F. 
551.37  560 is enacted. 
551.38  [APPROPRIATIONS FOR CIVIL COMMITMENT.] 
551.39  (a) Of the general fund appropriation, 
551.40  $3,386,000 in fiscal year 2003 is for 
551.41  the cost of implementing H.F. 281, if 
551.42  enacted.  This appropriation is 
551.43  available only if H.F. 281 is enacted. 
551.44  (b) Of the general fund appropriation, 
551.45  $155,000 in fiscal year 2003 is 
551.46  appropriated to the commissioner to be 
551.47  transferred to the Minnesota supreme 
551.48  court for costs associated with 
551.49  petitions filed for judicial 
551.50  commitment.  This appropriation is 
552.1   available only if H.F. 281 is enacted. 
552.2   [APPROPRIATIONS FOR CHILD SUPPORT.] (1) 
552.3   Of the general fund appropriation, 
552.4   $32,000 in fiscal year 2002 and $32,000 
552.5   in fiscal year 2003 are for the cost of 
552.6   implementing H.F. 1807, if enacted.  
552.7   This appropriation is available only if 
552.8   H.F. 1807 is enacted. 
552.9   (2) Of the general fund appropriation, 
552.10  $435,000 in fiscal year 2002 is for the 
552.11  cost of implementing H.F. 1446, if 
552.12  enacted.  This appropriation is 
552.13  available only if H.F. 1446 is enacted. 
552.14  [APPROPRIATION FOR PATIENT 
552.15  PROTECTIONS.] (a) Of the general fund 
552.16  appropriation, $248,000 in fiscal year 
552.17  2002 and $591,000 in fiscal year 2003 
552.18  are for the cost of implementing the 
552.19  patient protection provisions in H.F. 
552.20  560, if enacted.  This appropriation is 
552.21  available only if H.F. 560 is enacted. 
552.22  (b) Of the health care access fund 
552.23  appropriation, $106,000 in fiscal year 
552.24  2002 and $255,000 in fiscal year 2003 
552.25  are for the cost of implementing H.F. 
552.26  560, if enacted.  This appropriation is 
552.27  available only if H.F. 560 is enacted. 
552.28  [RECEIPTS FOR SYSTEMS PROJECTS.] 
552.29  Appropriations and federal receipts for 
552.30  information system projects for MAXIS, 
552.31  PRISM, MMIS, and SSIS must be deposited 
552.32  in the state system account authorized 
552.33  in Minnesota Statutes, section 
552.34  256.014.  Money appropriated for 
552.35  computer projects approved by the 
552.36  Minnesota office of technology, funded 
552.37  by the legislature, and approved by the 
552.38  commissioner of finance may be 
552.39  transferred from one project to another 
552.40  and from development to operations as 
552.41  the commissioner of human services 
552.42  considers necessary.  Any unexpended 
552.43  balance in the appropriation for these 
552.44  projects does not cancel but is 
552.45  available for ongoing development and 
552.46  operations. 
552.47  [GIFTS.] Notwithstanding Minnesota 
552.48  Statutes, chapter 7, the commissioner 
552.49  may accept on behalf of the state 
552.50  additional funding from sources other 
552.51  than state funds for the purpose of 
552.52  financing the cost of assistance 
552.53  program grants or nongrant 
552.54  administration.  All additional funding 
552.55  is appropriated to the commissioner for 
552.56  use as designated by the grantor of 
552.57  funding. 
552.58  [SYSTEMS CONTINUITY.] In the event of 
552.59  disruption of technical systems or 
552.60  computer operations, the commissioner 
552.61  may use available grant appropriations 
552.62  to ensure continuity of payments for 
552.63  maintaining the health, safety, and 
552.64  well-being of clients served by 
553.1   programs administered by the department 
553.2   of human services.  Grant funds must be 
553.3   used in a manner consistent with the 
553.4   original intent of the appropriation. 
553.5   [SPECIAL REVENUE FUND INFORMATION.] On 
553.6   December 1, 2001, and December 1, 2002, 
553.7   the commissioner shall provide the 
553.8   chairs of the house health and human 
553.9   services finance committee and the 
553.10  senate health, human services, and 
553.11  corrections budget division with 
553.12  detailed fund balance information for 
553.13  each special revenue fund account.  
553.14  [FEDERAL ADMINISTRATIVE REIMBURSEMENT.] 
553.15  Federal administrative reimbursement 
553.16  resulting from MinnesotaCare outreach 
553.17  grants and the Minnesota senior health 
553.18  options project are appropriated to the 
553.19  commissioner for these activities.  Any 
553.20  balance from this appropriation 
553.21  remaining at the end of the biennium 
553.22  shall be transferred to the general 
553.23  fund. 
553.24  [NONFEDERAL SHARE TRANSFERS.] The 
553.25  nonfederal share of activities for 
553.26  which federal administrative 
553.27  reimbursement is appropriated to the 
553.28  commissioner may be transferred to the 
553.29  special revenue fund.  Any balance from 
553.30  this appropriation remaining at the end 
553.31  of the biennium shall be transferred to 
553.32  the general fund. 
553.33  [MAJOR SYSTEMS TRANSFER.] (1) 
553.34  $22,600,000 of funds available in the 
553.35  state systems account authorized in 
553.36  Minnesota Statutes, section 256.014, is 
553.37  transferred to the general fund for the 
553.38  biennium ending June 30, 2003. 
553.39  (2) $1,400,000 of funds available in 
553.40  the state systems account authorized in 
553.41  Minnesota Statutes, section 256.014, is 
553.42  transferred to the general fund for the 
553.43  biennium ending June 30, 2005.  
553.44  Notwithstanding section 13 of this 
553.45  article, this rider does not expire on 
553.46  June 30, 2003. 
553.47  [TANF FUNDS APPROPRIATED TO OTHER 
553.48  ENTITIES.] Any expenditures from the 
553.49  TANF block grant shall be expended in 
553.50  accordance with the requirements and 
553.51  limitations of part A of title IV of 
553.52  the Social Security Act, as amended, 
553.53  and any other applicable federal 
553.54  requirement or limitation.  Prior to 
553.55  any expenditure of these funds, the 
553.56  commissioner shall assure that funds 
553.57  are expended in compliance with the 
553.58  requirements and limitations of federal 
553.59  law and that any reporting requirements 
553.60  of federal law are met.  It shall be 
553.61  the responsibility of any entity to 
553.62  which these funds are appropriated to 
553.63  implement a memorandum of understanding 
553.64  with the commissioner that provides the 
553.65  necessary assurance of compliance prior 
554.1   to any expenditure of funds.  The 
554.2   commissioner shall receipt TANF funds 
554.3   appropriated to other state agencies 
554.4   and coordinate all related interagency 
554.5   accounting transactions necessary to 
554.6   implement these appropriations.  
554.7   Unexpended TANF funds appropriated to 
554.8   any state, local, or nonprofit entity 
554.9   cancel at the end of the state fiscal 
554.10  year unless appropriating language 
554.11  permits otherwise. 
554.12  [TANF FUNDS TRANSFERRED TO OTHER 
554.13  FEDERAL GRANTS.] The commissioner must 
554.14  authorize transfers from TANF to other 
554.15  federal block grants so that funds are 
554.16  available to meet the annual 
554.17  expenditure needs as appropriated.  
554.18  Transfers may be authorized prior to 
554.19  the expenditure year with the agreement 
554.20  of the receiving entity.  Transferred 
554.21  funds must be expended in the year for 
554.22  which the funds were appropriated 
554.23  unless appropriation language permits 
554.24  otherwise.  In accelerating transfer 
554.25  authorizations, the commissioner must 
554.26  aim to preserve the future potential 
554.27  transfer capacity from TANF to other 
554.28  block grants. 
554.29  [TANF MAINTENANCE OF EFFORT.] (a) In 
554.30  order to meet the basic maintenance of 
554.31  effort (MOE) requirements of the TANF 
554.32  block grant specified under Code of 
554.33  Federal Regulations, title 45, section 
554.34  263.1, the commissioner may only report 
554.35  nonfederal money expended for allowable 
554.36  activities listed in the following 
554.37  clauses as TANF MOE expenditures: 
554.38  (1) MFIP cash and food assistance 
554.39  benefits under Minnesota Statutes, 
554.40  chapter 256J; 
554.41  (2) the child care assistance programs 
554.42  under Minnesota Statutes, sections 
554.43  119B.03 and 119B.05, and county child 
554.44  care administrative costs under 
554.45  Minnesota Statutes, section 119B.15; 
554.46  (3) state and county MFIP 
554.47  administrative costs under Minnesota 
554.48  Statutes, chapters 256J and 256K; 
554.49  (4) state, county, and tribal MFIP 
554.50  employment services under Minnesota 
554.51  Statutes, chapters 256J and 256K; and 
554.52  (5) expenditures made on behalf of 
554.53  noncitizen MFIP recipients who qualify 
554.54  for the medical assistance without 
554.55  federal financial participation program 
554.56  under Minnesota Statutes, section 
554.57  256B.06, subdivision 4, paragraphs (d), 
554.58  (e), and (j). 
554.59  (b) The commissioner shall ensure that 
554.60  sufficient qualified nonfederal 
554.61  expenditures are made each year to meet 
554.62  the state's TANF MOE requirements.  For 
554.63  the activities listed in paragraph (a), 
555.1   clauses (2) to (5), the commissioner 
555.2   may only report expenditures that are 
555.3   excluded from the definition of 
555.4   assistance under Code of Federal 
555.5   Regulations, title 45, section 260.31. 
555.6   (c) If nonfederal expenditures for the 
555.7   programs and purposes listed in 
555.8   paragraph (a) are insufficient to meet 
555.9   the state's TANF MOE requirements, the 
555.10  commissioner shall recommend additional 
555.11  allowable sources of nonfederal 
555.12  expenditures to the legislature, if the 
555.13  legislature is or will be in session to 
555.14  take action to specify additional 
555.15  sources of nonfederal expenditures for 
555.16  TANF MOE before a federal penalty is 
555.17  imposed.  The commissioner shall 
555.18  otherwise provide notice to the 
555.19  legislative commission on planning and 
555.20  fiscal policy under paragraph (e). 
555.21  (d) If the commissioner uses authority 
555.22  granted under Laws 1999, chapter 245, 
555.23  article 1, section 10, or similar 
555.24  authority granted by a subsequent 
555.25  legislature, to meet the state's TANF 
555.26  MOE requirements in a reporting period, 
555.27  the commissioner shall inform the 
555.28  chairs of the appropriate legislative 
555.29  committees about all transfers made 
555.30  under that authority for this purpose.  
555.31  (e) If the commissioner determines that 
555.32  nonfederal expenditures under paragraph 
555.33  (a) are insufficient to meet TANF MOE 
555.34  expenditure requirements, and if the 
555.35  legislature is not or will not be in 
555.36  session to take timely action to avoid 
555.37  a federal penalty, the commissioner may 
555.38  report nonfederal expenditures from 
555.39  other allowable sources as TANF MOE 
555.40  expenditures after the requirements of 
555.41  this paragraph are met.  The 
555.42  commissioner may report nonfederal 
555.43  expenditures in addition to those 
555.44  specified under paragraph (a) as 
555.45  nonfederal TANF MOE expenditures, but 
555.46  only ten days after the commissioner of 
555.47  finance has first submitted the 
555.48  commissioner's recommendations for 
555.49  additional allowable sources of 
555.50  nonfederal TANF MOE expenditures to the 
555.51  members of the legislative commission 
555.52  on planning and fiscal policy for their 
555.53  review. 
555.54  (f) The commissioner of finance shall 
555.55  not incorporate any changes in federal 
555.56  TANF expenditures or nonfederal 
555.57  expenditures for TANF MOE that may 
555.58  result from reporting additional 
555.59  allowable sources of nonfederal TANF 
555.60  MOE expenditures under the interim 
555.61  procedures in paragraph (e) into the 
555.62  February or November forecasts required 
555.63  under Minnesota Statutes, section 
555.64  16A.103, unless the commissioner of 
555.65  finance has approved the additional 
555.66  sources of expenditures under paragraph 
555.67  (e). 
556.1   (g) The provisions of Minnesota 
556.2   Statutes, section 256.011, subdivision 
556.3   3, which require that federal grants or 
556.4   aids secured or obtained under that 
556.5   subdivision be used to reduce any 
556.6   direct appropriations provided by law, 
556.7   do not apply if the grants or aids are 
556.8   federal TANF funds. 
556.9   (h) Notwithstanding section 14 of this 
556.10  article, paragraphs (a) to (h) expire 
556.11  June 30, 2005. 
556.12  Subd. 2.  Agency Management 
556.13  General              34,500,000    32,971,000
556.14  State Government
556.15  Special Revenue         392,000       392,000
556.16  Health Care 
556.17  Access                3,591,000     3,602,000
556.18  Federal TANF            546,000       454,000
556.19  The amounts that may be spent from the 
556.20  appropriation for each purpose are as 
556.21  follows: 
556.22  (a) Financial Operations 
556.23  General               6,708,000     6,708,000
556.24  Health Care
556.25  Access                  803,000       803,000
556.26  Federal TANF            546,000       454,000
556.27  (b) Legal and Regulation Operations 
556.28  General               8,682,000     8,305,000
556.29  State Government
556.30  Special Revenue         392,000       392,000
556.31  Health Care
556.32  Access                  233,000       244,000
556.33  [CORE LICENSING ACTIVITIES.] Of the 
556.34  general fund appropriation, $1,138,000 
556.35  in fiscal year 2002 and $923,000 in 
556.36  fiscal year 2003 is to support 14 new 
556.37  licensor positions.  Of this amount, 
556.38  $72,000 in fiscal year 2002 and 
556.39  $107,000 in fiscal year 2003 is to 
556.40  cover maintenance and operational costs 
556.41  for a new computer system, which will 
556.42  provide public access to licensing 
556.43  information. In order to receive 
556.44  continued appropriations for these 
556.45  purposes, by January 1, 2003, the 
556.46  commissioner shall: 
556.47  (1) reduce the average length of time 
556.48  to complete investigations of licensing 
556.49  complaints within 75 days; 
556.50  (2) complete all licensing reviews 
556.51  within the one-year and two-year 
556.52  intervals set forth in statutes; and 
557.1   (3) complete negative licensing action 
557.2   decisions within 45 days of county 
557.3   recommendations. 
557.4   [EXPEDITED MALTREATMENT 
557.5   INVESTIGATIONS.] Of the general fund 
557.6   appropriation, $359,000 in fiscal year 
557.7   2002 and $277,000 in fiscal year 2003 
557.8   are for one senior investigator 
557.9   position, three investigator positions, 
557.10  and one-half of a clerical position to 
557.11  achieve the goals for expedited 
557.12  maltreatment investigations.  In order 
557.13  to receive continued appropriations for 
557.14  this purpose, by January 1, 2003, the 
557.15  commissioner shall reduce the average 
557.16  length of time to complete maltreatment 
557.17  investigations to 60 days. 
557.18  [PUBLIC GUARDIANSHIP INCENTIVES.] Of 
557.19  the general fund appropriation, 
557.20  $250,000 in fiscal year 2002 and 
557.21  $250,000 in fiscal year 2003 is to be 
557.22  used for the purposes of providing 
557.23  fiscal incentives to encourage counties 
557.24  to establish private alternatives. 
557.25  (c) Management Operations 
557.26  General              19,110,000    17,958,000
557.27  Health Care
557.28  Access                2,555,000     2,555,000
557.29  Subd. 3.  Administrative Reimbursement/
557.30  Pass Through
557.31  Federal TANF                               60,565         51,992
557.32  Subd. 4.  Children's Services Grants 
557.33  General              59,320,000    59,833,000
557.34  Federal TANF          6,290,000     6,290,000
557.35  [ADOPTION ASSISTANCE INCENTIVE GRANTS.] 
557.36  Federal funds available during fiscal 
557.37  year 2002 and fiscal year 2003, for 
557.38  adoption incentive grants are 
557.39  appropriated to the commissioner for 
557.40  these purposes. 
557.41  [TANF TRANSFER TO SOCIAL SERVICES.] 
557.42  $4,650,000 is appropriated to the 
557.43  commissioner in fiscal year 2002 and in 
557.44  fiscal year 2003 for purposes of 
557.45  increasing services for families with 
557.46  children whose incomes are at or below 
557.47  200 percent of the federal poverty 
557.48  guidelines.  The commissioner shall 
557.49  authorize a sufficient transfer of 
557.50  funds from the state's federal TANF 
557.51  block grant to the state's federal 
557.52  social services block grant to meet 
557.53  this appropriation. 
557.54  [SOCIAL SERVICES BLOCK GRANT FUNDS FOR 
557.55  CONCURRENT PERMANENCY PLANNING.] 
557.56  Notwithstanding Minnesota Statutes, 
557.57  section 256E.07, $4,650,000 in fiscal 
557.58  year 2002 and $4,650,000 in fiscal year 
558.1   2003 in social services block grant 
558.2   funds allocated to the commissioner 
558.3   under title XX of the Social Security 
558.4   Act are available for distribution to 
558.5   counties under the formula in Minnesota 
558.6   Statutes, section 260C.213, for the 
558.7   purposes of concurrent permanency 
558.8   planning. 
558.9   Subd. 5.  Children's Services Management
558.10  General               5,487,000     5,487,000
558.11  Subd. 6.  Basic Health Care Grants
558.12                Summary by Fund
558.13  General           1,113,870,000 1,317,141,000
558.14  Health Care
558.15  Access              188,642,000   243,842,000
558.16  The amounts that may be spent from this 
558.17  appropriation for each purpose are as 
558.18  follows: 
558.19  (a) MinnesotaCare Grants  
558.20  Health Care
558.21  Access              188,642,000   243,842,000
558.22  [MINNESOTACARE FEDERAL RECEIPTS.] 
558.23  Receipts received as a result of 
558.24  federal participation pertaining to 
558.25  administrative costs of the Minnesota 
558.26  health care reform waiver shall be 
558.27  deposited as nondedicated revenue in 
558.28  the health care access fund.  Receipts 
558.29  received as a result of federal 
558.30  participation pertaining to grants 
558.31  shall be deposited in the federal fund 
558.32  and shall offset health care access 
558.33  funds for payments to providers. 
558.34  [MINNESOTACARE FUNDING.] The 
558.35  commissioner may expend money 
558.36  appropriated from the health care 
558.37  access fund for MinnesotaCare in either 
558.38  fiscal year of the biennium. 
558.39  (b) MA Basic Health Care Grants -
558.40  Families and Children
558.41  General             433,298,000   517,563,000
558.42  (c) MA Basic Health Care Grants - 
558.43  Elderly and Disabled
558.44  General             511,946,000   604,451,000
558.45  [MEDICALLY NEEDY STANDARD AND FEDERAL 
558.46  AUTHORIZATION.] If federal 
558.47  authorization to use the medical 
558.48  assistance income standard in Minnesota 
558.49  Statutes, section 256B.056, subdivision 
558.50  4, as the medically needy standard is 
558.51  not obtained, the commissioner shall 
558.52  use all resulting savings to provide 
558.53  services under the home and 
558.54  community-based waiver for persons with 
558.55  mental retardation and related 
559.1   conditions. 
559.2   (d) General Assistance Medical Care
559.3   General             155,744,000   176,748,000
559.4   (e) Health Care Grants - Other Assistance  
559.5   General              12,882,000    18,379,000
559.6   Health Care             
559.7   Access                 750,000       750,000 
559.8   Subd. 7.  Basic Health Care Management
559.9   General              20,715,000    20,665,000
559.10  Health Care
559.11  Access               13,583,000    13,583,000
559.12  The amounts that may be spent from this 
559.13  appropriation for each purpose are as 
559.14  follows: 
559.15  (a) Health Care Policy Administration
559.16  General               2,807,000     2,812,000
559.17  Health Care 
559.18  Access                  562,000       562,000
559.19  (b) Health Care Operations
559.20  General              17,908,000    17,853,000
559.21  Health Care
559.22  Access               13,021,000    13,021,000
559.23  [PREPAID MEDICAL PROGRAMS.] The 
559.24  nonfederal share of the prepaid medical 
559.25  assistance program fund, which has been 
559.26  appropriated to fund county managed 
559.27  care advocacy and enrollment operating 
559.28  costs, shall be disbursed as grants 
559.29  using either a reimbursement or block 
559.30  grant mechanism. 
559.31  Subd. 8.  State-Operated Services
559.32  General             205,868,000   199,287,000
559.33  The amounts that may be spent from this 
559.34  appropriation for each purpose are as 
559.35  follows: 
559.36  [MITIGATION RELATED TO STATE-OPERATED 
559.37  SERVICES RESTRUCTURING.] Money 
559.38  appropriated to finance mitigation 
559.39  expenses related to restructuring 
559.40  state-operated services programs and 
559.41  administrative services may be 
559.42  transferred between fiscal years within 
559.43  the biennium. 
559.44  [STATE-OPERATED SERVICES CHEMICAL 
559.45  DEPENDENCY PROGRAMS.] When the 
559.46  operations of the state-operated 
559.47  services chemical dependency fund 
559.48  created in Minnesota Statutes, section 
559.49  246.18, subdivision 2, are impeded by 
559.50  projected cash deficiencies resulting 
560.1   from delays in the receipt of grants, 
560.2   dedicated income, or other similar 
560.3   receivables, and when the deficiencies 
560.4   would be corrected within the budget 
560.5   period involved, the commissioner of 
560.6   finance may transfer general fund cash 
560.7   reserves into this account as necessary 
560.8   to meet cash demands.  The cash flow 
560.9   transfers must be returned to the 
560.10  general fund in the fiscal year that 
560.11  the transfer was made.  Any interest 
560.12  earned on general fund cash flow 
560.13  transfers accrues to the general fund 
560.14  and not the state-operated services 
560.15  chemical dependency fund. 
560.16  [STATE-OPERATED SERVICES 
560.17  RESTRUCTURING.] For purposes of 
560.18  restructuring state-operated services, 
560.19  any state-operated services employee 
560.20  whose position is to be eliminated 
560.21  shall be afforded the options provided 
560.22  in applicable collective bargaining 
560.23  agreements.  All salary and mitigation 
560.24  allocations from fiscal year 2002 shall 
560.25  be carried forward into fiscal year 
560.26  2003.  Provided there is no conflict 
560.27  with any collective bargaining 
560.28  agreement, any state-operated services 
560.29  position reduction must only be 
560.30  accomplished through mitigation, 
560.31  attrition, transfer, and other measures 
560.32  as provided in state or applicable 
560.33  collective bargaining agreements and in 
560.34  Minnesota Statutes, section 252.50, 
560.35  subdivision 11, and not through layoff. 
560.36  [REPAIRS AND BETTERMENTS.] The 
560.37  commissioner may transfer unencumbered 
560.38  appropriation balances between fiscal 
560.39  years within the biennium for the state 
560.40  residential facilities repairs and 
560.41  betterments account and special 
560.42  equipment. 
560.43  Subd. 9.  Continuing Care Grants 
560.44  General           1,367,177,000 1,483,241,000
560.45  Lottery Cash Flow     1,158,000     1,158,000
560.46  The amounts that may be spent from this 
560.47  appropriation for each purpose are as 
560.48  follows: 
560.49  (a) Community Social Services
560.50  Block Grants
560.51      48,718,000     49,695,000 
560.52  [CSSA TRADITIONAL APPROPRIATION.] 
560.53  Notwithstanding Minnesota Statutes, 
560.54  section 256E.06, subdivisions 1 and 2, 
560.55  the appropriations available under that 
560.56  section in fiscal years 2002 and 2003 
560.57  must be distributed to each county 
560.58  proportionately to the aid received by 
560.59  the county in calendar year 2000.  
560.60  (b) Aging Adult Service Grants
561.1       10,300,000     10,532,000 
561.2   [COUNTY PLANNING AND SERVICE 
561.3   DEVELOPMENT.] Of this appropriation, 
561.4   $1,200,000 in fiscal year 2002 and 
561.5   $1,600,000 in fiscal year 2003 are for 
561.6   distribution to county boards for 
561.7   planning and development of community 
561.8   services for the elderly as required 
561.9   under Minnesota Statutes, section 
561.10  256B.437, subdivision 2.  For Phase I 
561.11  funding to develop the initial biennial 
561.12  plan addendum, the commissioner shall 
561.13  distribute a minimum of $10,000 to each 
561.14  county on July 1, 2001.  In a county 
561.15  with more than 10,000 persons over 65 
561.16  years, the funding allocation shall be 
561.17  $15,000; with more than 30,000 persons 
561.18  over 65 years - $20,000; with more than 
561.19  50,000 persons over 65 years - $25,000; 
561.20  and with more than 100,000 persons over 
561.21  65 years - $30,000.  Upon submission of 
561.22  the completed biennial plan addendum, 
561.23  the commissioner shall distribute Phase 
561.24  II funding to each county for 
561.25  development of community-based services 
561.26  no later than January 1, 2002.  For 
561.27  counties with less than 4,500 persons 
561.28  under 65 years, the Phase II allocation 
561.29  shall be $10,000.  For counties with 
561.30  more than 4,500 persons over 65 years, 
561.31  the Phase II allocation shall be $2.23 
561.32  per person over 65 years.  Any 
561.33  remaining funds shall be available as 
561.34  targeted funds distributed to counties 
561.35  with designated critical access sites.  
561.36  Phase I funding may be carried over by 
561.37  the county into 2002 and 2003 for the 
561.38  development of services. 
561.39  (c) Deaf and Hard-of-Hearing 
561.40  Services Grants
561.41       1,923,000      1,825,000 
561.42  [SERVICES TO DEAF PERSONS WITH MENTAL 
561.43  ILLNESS.] Of this appropriation, 
561.44  $100,000 in fiscal year 2002 and 
561.45  $100,000 in fiscal year 2003 is for a 
561.46  grant to a nonprofit agency that 
561.47  currently serves deaf and 
561.48  hard-of-hearing adults with mental 
561.49  illness through residential programs 
561.50  and supportive housing outreach 
561.51  activities.  The grant must be used to 
561.52  continue and maintain community support 
561.53  services for deaf and hard-of-hearing 
561.54  adults with mental illness who use or 
561.55  wish to use sign language as their 
561.56  primary means of communication. 
561.57  (d) Mental Health Grants 
561.58  General              50,014,000    51,525,000
561.59  Lottery Cash Flow     1,158,000     1,158,000
561.60  (e) Community Support Grants
561.61      12,698,000     12,920,000 
562.1   (f) Medical Assistance Long-Term 
562.2   Care Waivers and Home Care
562.3      452,689,000    533,489,000 
562.4   [PROVIDER RATE INCREASES.] (1) The 
562.5   commissioner shall increase 
562.6   reimbursement rates by 3.0 percent the 
562.7   first year of the biennium and by 3.0 
562.8   percent the second year for the 
562.9   providers listed in paragraph (2).  The 
562.10  increases shall be effective for 
562.11  services rendered on or after July 1 of 
562.12  each year. 
562.13  (2) The rate increases described in 
562.14  this section shall be provided to home 
562.15  and community-based waivered services 
562.16  for persons with mental retardation or 
562.17  related conditions under Minnesota 
562.18  Statutes, section 256B.501; home and 
562.19  community-based waivered services for 
562.20  the elderly under Minnesota Statutes, 
562.21  section 256B.0915; waivered services 
562.22  under community alternatives for 
562.23  disabled individuals under Minnesota 
562.24  Statutes, section 256B.49; community 
562.25  alternative care waivered services 
562.26  under Minnesota Statutes, section 
562.27  256B.49; traumatic brain injury 
562.28  waivered services under Minnesota 
562.29  Statutes, section 256B.49; nursing 
562.30  services and home health services under 
562.31  Minnesota Statutes, section 256B.0625, 
562.32  subdivision 6a; personal care services 
562.33  and nursing supervision of personal 
562.34  care services under Minnesota Statutes, 
562.35  section 256B.0625, subdivision 19a; 
562.36  private-duty nursing services under 
562.37  Minnesota Statutes, section 256B.0625, 
562.38  subdivision 7; day training and 
562.39  habilitation services for adults with 
562.40  mental retardation or related 
562.41  conditions under Minnesota Statutes, 
562.42  sections 252.40 to 252.46; alternative 
562.43  care services under Minnesota Statutes, 
562.44  section 256B.0913; adult residential 
562.45  program grants under Minnesota Rules, 
562.46  parts 9535.2000 to 9535.3000; adult and 
562.47  family community support grants under 
562.48  Minnesota Rules, parts 9535.1700 to 
562.49  9535.1760; semi-independent living 
562.50  services under Minnesota Statutes, 
562.51  section 252.275, including SILS funding 
562.52  under county social services grants 
562.53  formerly funded under Minnesota 
562.54  Statutes, chapter 256I; community 
562.55  support services for deaf and 
562.56  hard-of-hearing adults with mental 
562.57  illness who use or wish to use sign 
562.58  language as their primary means of 
562.59  communication; and living skills 
562.60  training programs for persons with 
562.61  intractable epilepsy who need 
562.62  assistance in the transition to 
562.63  independent living; and group 
562.64  residential housing supplementary 
562.65  service rate under Minnesota Statutes, 
562.66  section 256I.05, subdivision 1a. 
562.67  (g) Medical Assistance Long-Term 
563.1   Care Facilities
563.2      590,959,000    599,839,000
563.3   [MORATORIUM EXCEPTIONS.] During each 
563.4   year of the biennium beginning July 1, 
563.5   2001, the commissioner of health may 
563.6   approve moratorium exception projects 
563.7   under Minnesota Statutes, section 
563.8   144A.073, for which the full annualized 
563.9   state share of medical assistance costs 
563.10  does not exceed $2,000,000. 
563.11  [NURSING FACILITY OPERATED BY THE RED 
563.12  LAKE BAND OF CHIPPEWA INDIANS.] (1) The 
563.13  medical assistance payment rates for 
563.14  the 47-bed nursing facility operated by 
563.15  the Red Lake Band of Chippewa Indians 
563.16  must be calculated according to 
563.17  allowable reimbursement costs under the 
563.18  medical assistance program, as 
563.19  specified in Minnesota Statutes, 
563.20  section 246.50, and are subject to the 
563.21  facility-specific Medicare upper limits.
563.22  (2) In addition, the commissioner shall 
563.23  make available rate adjustments for the 
563.24  biennium beginning July 1, 2001, on the 
563.25  same basis as the adjustments provided 
563.26  to nursing facilities under Minnesota 
563.27  Statutes, section 256B.431.  The 
563.28  commissioner must use the facility's 
563.29  final 2000 and 2001 Medicare cost 
563.30  reports to calculate the adjustments.  
563.31  This rate increase shall become part of 
563.32  the facility's base rate for future 
563.33  rate years. 
563.34  [ICF/MR DISALLOWANCES.] Of this 
563.35  appropriation, $65,000 in each fiscal 
563.36  year is to reimburse a four-bed ICF/MR 
563.37  in Ramsey county for disallowance 
563.38  resulting from field audit findings. 
563.39  The commissioner shall exempt these 
563.40  facilities from the provisions of 
563.41  Minnesota Statutes, section 256B.501, 
563.42  subdivision 5b, paragraph (d), clause 
563.43  (6), for the rate years beginning 
563.44  October 1, 1996, and October 1, 1997. 
563.45  [COMMUNITY SERVICES DEVELOPMENT GRANTS 
563.46  PROGRAM.] Of this appropriation, 
563.47  $18,000,000 for the biennium ending 
563.48  June 30, 2003, is to the commissioner 
563.49  for grants under Minnesota Statutes, 
563.50  section 256.9754.  Unexpended 
563.51  appropriations in fiscal year 2002 do 
563.52  not cancel but are available to the 
563.53  commissioner for these purposes in 
563.54  fiscal year 2003.  This is a one-time 
563.55  appropriation and shall not become part 
563.56  of the base-level funding for the 
563.57  2004-2005 biennium. 
563.58  [LONG-TERM CARE CONSULTATION SERVICES.] 
563.59  Long-term care consultation services 
563.60  payments to all counties shall continue 
563.61  at the payment amount in effect for 
563.62  preadmission screening in fiscal year 
563.63  2001. 
564.1   (h) Alternative Care Grants  
564.2   General              75,764,000    89,646,000
564.3   [ALTERNATIVE CARE TRANSFER.] Any money 
564.4   allocated to the alternative care 
564.5   program that is not spent for the 
564.6   purposes indicated does not cancel but 
564.7   shall be transferred to the medical 
564.8   assistance account. 
564.9   [ALTERNATIVE CARE APPROPRIATION.] The 
564.10  commissioner may expend the money 
564.11  appropriated for the alternative care 
564.12  program for that purpose in either year 
564.13  of the biennium. 
564.14  (i) Group Residential Housing
564.15  General              78,712,000    86,807,000
564.16  (j) Chemical Dependency
564.17  Entitlement Grants
564.18  General              39,459,000    41,045,000
564.19  (k) Chemical Dependency 
564.20  Nonentitlement Grants
564.21  General               5,941,000     5,918,000
564.22  [CONSOLIDATED CHEMICAL DEPENDENCY 
564.23  TREATMENT FUND ONE-TIME TRANSFER.] 
564.24  $9,367,000 of funds available in the 
564.25  consolidated chemical dependency 
564.26  treatment fund general reserve account 
564.27  is transferred in fiscal year 2002 to 
564.28  the general fund. 
564.29  Subd. 10.  Continuing Care Management
564.30  General              24,546,000    23,928,000
564.31  State Government
564.32  Special Revenue         115,000       115,000
564.33  Lottery Cash Flow       142,000       142,000
564.34  [COUNTY INVOLVEMENT COSTS.] Of this 
564.35  appropriation, up to $481,000 in fiscal 
564.36  year 2002 and up to $642,000 in fiscal 
564.37  year 2003 are for the commissioner to 
564.38  allocate to counties for resident 
564.39  relocation costs resulting from planned 
564.40  closures under Minnesota Statutes, 
564.41  section 256B.437, and resident 
564.42  relocations under Minnesota Statutes, 
564.43  section 144A.161.  Unexpended funds for 
564.44  fiscal year 2002 do not cancel but are 
564.45  available to the commissioner for this 
564.46  purpose in fiscal year 2003. 
564.47  [REGION 10 QUALITY ASSURANCE 
564.48  COMMISSION.] (1) Of the appropriation 
564.49  from the general fund for the biennium 
564.50  ending June 30, 2003, $548,000 is to 
564.51  the commissioner of human services to 
564.52  be allocated to the region 10 quality 
564.53  assurance commission for operating 
564.54  costs of the alternative quality 
564.55  assurance licensing project and for 
565.1   grants to counties participating in 
565.2   that project. 
565.3   (2) $50,000 is appropriated from the 
565.4   general fund to the commissioner of 
565.5   human services for the biennium ending 
565.6   June 30, 2003, for the region 10 
565.7   quality assurance commission to conduct 
565.8   the evaluation required under Minnesota 
565.9   Statutes, section 256B.0951, 
565.10  subdivision 9. 
565.11  (3) $150,000 is appropriated from the 
565.12  general fund to the commissioner of 
565.13  human services for the biennium ending 
565.14  June 30, 2003, for the commissioner to 
565.15  conduct the project evaluation required 
565.16  for the federal 1115 waiver of ICF/MR 
565.17  regulations. 
565.18  Subd. 11.  Economic Support Grants
565.19  General              91,086,000    90,136,000
565.20  Federal TANF        228,209,000   197,741,000
565.21  The amounts that may be spent from this 
565.22  appropriation for each purpose are as 
565.23  follows: 
565.24  (a) Assistance to Families Grants
565.25  General              25,237,000    21,821,000
565.26  Federal TANF        164,745,000   133,553,000
565.27  (b) Work Grants              
565.28  General               9,844,000     9,844,000
565.29  Federal TANF         62,203,000    61,403,000
565.30  [NONTRADITIONAL CAREER ASSISTANCE.] Of 
565.31  the federal TANF appropriation, 
565.32  $500,000 for fiscal year 2002 and 
565.33  $500,000 for fiscal year 2003 is for 
565.34  grants for nontraditional career 
565.35  assistance training programs under 
565.36  Minnesota Statutes, section 256K.30. 
565.37  This is a one-time appropriation and 
565.38  shall not be added to the base-level 
565.39  funding in the 2004-2005 biennium. 
565.40  [SUPPORTIVE HOUSING AND MANAGED CARE 
565.41  PILOT PROJECT.] Of the general fund 
565.42  appropriation, $2,000,000 in fiscal 
565.43  year 2002 and $5,000,000 in fiscal year 
565.44  2003 is for the supportive housing and 
565.45  managed care pilot project under 
565.46  Minnesota Statutes, section 256K.25. 
565.47  This appropriation may be transferred 
565.48  between fiscal years within the 
565.49  biennium. 
565.50  [INTENSIVE INTERVENTION TRANSITIONAL 
565.51  EMPLOYMENT TRAINING PROJECT.] Of the 
565.52  federal TANF appropriation, $800,000 
565.53  for the biennium ending June 30, 2003, 
565.54  is for the Southeast Asian 
565.55  collaborative in Hennepin county for an 
565.56  intensive intervention transitional 
566.1   employment training project, which 
566.2   serves TANF-eligible recipients, and 
566.3   which moves refugee and immigrant 
566.4   welfare recipients into unsubsidized 
566.5   employment leading to 
566.6   self-sufficiency.  The commissioner 
566.7   must select one of the five partners in 
566.8   the collaborative as the fiscal agent 
566.9   for the project.  The primary effort of 
566.10  the project must be on intensive 
566.11  employment skills training, including 
566.12  workplace English and overcoming 
566.13  cultural barriers, and on specialized 
566.14  training in fields of work which 
566.15  involve a credit-based curriculum.  For 
566.16  recipients without a high school 
566.17  diploma or a GED, extra effort shall be 
566.18  made to help the recipient meet the 
566.19  "ability to benefit test" so the 
566.20  recipient can receive financial aid for 
566.21  further training.  During the 
566.22  specialized training, efforts should be 
566.23  made to involve the recipients with an 
566.24  internship program and retention 
566.25  specialist.  A minor amount of the 
566.26  grant may be used for other efforts to 
566.27  make the recipient families more 
566.28  self-sufficient as provided within TANF 
566.29  rules.  This is a one-time 
566.30  appropriation and shall not be added to 
566.31  the base-level funding for the 
566.32  2004-2005 biennium. 
566.33  [LOCAL INTERVENTION GRANTS FOR 
566.34  SELF-SUFFICIENCY CARRYFORWARD.] 
566.35  Unexpended funds appropriated for local 
566.36  intervention grants under Minnesota 
566.37  Statutes, section 256J.625, for fiscal 
566.38  year 2002 do not cancel but are 
566.39  available to the commissioner for these 
566.40  purposes in fiscal year 2003. 
566.41  (c) Economic Support Grants -      
566.42  Other Assistance
566.43  General               4,682,000     6,931,000
566.44  Federal TANF          1,001,000     2,525,000
566.45  [TANF TRANSFER TO CHILD CARE AND 
566.46  DEVELOPMENT BLOCK GRANT.] $1,526,000 
566.47  for fiscal year 2003 is appropriated to 
566.48  the commissioner of children, families, 
566.49  and learning for the purposes of 
566.50  Minnesota Statutes, section 119B.05.  
566.51  The commissioner of human services 
566.52  shall authorize a sufficient transfer 
566.53  of funds from the state's federal TANF 
566.54  block grant to the state's child care 
566.55  and development fund block grant to 
566.56  meet this appropriation. 
566.57  [WORKING FAMILY TAX CREDITS.] (1) On a 
566.58  regular basis, the commissioner of 
566.59  revenue, with the assistance of the 
566.60  commissioner of human services, shall 
566.61  calculate the value of the refundable 
566.62  portion of the Minnesota working family 
566.63  credits provided under Minnesota 
566.64  Statutes, section 290.0671, that 
566.65  qualifies for federal reimbursement 
567.1   from the temporary assistance for needy 
567.2   families block grant.  The commissioner 
567.3   of revenue shall provide the 
567.4   commissioner of human services with 
567.5   such expenditure records and 
567.6   information as are necessary to support 
567.7   draws of federal funds.  
567.8   (2) Federal TANF funds, as specified in 
567.9   this paragraph, are appropriated to the 
567.10  commissioner of human services based on 
567.11  calculations under paragraph (a) of 
567.12  working family tax credit expenditures 
567.13  that qualify for reimbursement from the 
567.14  TANF block grant for income tax refunds 
567.15  payable in federal fiscal years 
567.16  beginning October 1, 2001.  The draws 
567.17  of federal TANF funds shall be made on 
567.18  a regular basis based on calculations 
567.19  of credit expenditures by the 
567.20  commissioner of revenue.  Up to the 
567.21  following amounts of federal TANF draws 
567.22  are appropriated to the commissioner of 
567.23  human services to deposit in the 
567.24  general fund:  in fiscal year 2002, 
567.25  $25,000,000; and in fiscal year 2003, 
567.26  $16,000,000. 
567.27  (d) Child Support Enforcement
567.28  General               4,239,000     4,239,000
567.29  Federal TANF            260,000       260,000
567.30  [CHILD SUPPORT PAYMENT CENTER.] 
567.31  Payments to the commissioner from other 
567.32  governmental units, private 
567.33  enterprises, and individuals for 
567.34  services performed by the child support 
567.35  payment center must be deposited in the 
567.36  state systems account authorized under 
567.37  Minnesota Statutes, section 256.014.  
567.38  These payments are appropriated to the 
567.39  commissioner for the operation of the 
567.40  child support payment center or system, 
567.41  according to Minnesota Statutes, 
567.42  section 256.014. 
567.43  (e) General Assistance
567.44  General              17,156,000    15,700,000
567.45  [GENERAL ASSISTANCE STANDARD.] The 
567.46  commissioner shall set the monthly 
567.47  standard of assistance for general 
567.48  assistance units consisting of an adult 
567.49  recipient who is childless and 
567.50  unmarried or living apart from his or 
567.51  her parents or a legal guardian at 
567.52  $203.  The commissioner may reduce this 
567.53  amount in accordance with Laws 1997, 
567.54  chapter 85, article 3, section 54. 
567.55  (f) Minnesota Supplemental Aid
567.56  General              29,678,000    31,351,000
567.57  (g) Refugee Services         
567.58  General                 250,000       250,000
568.1   Subd. 12.  Economic Support  
568.2   Management
568.3   General              37,775,000    37,405,000
568.4   Health Care
568.5   Access                1,318,000     1,318,000
568.6   Federal TANF          2,493,000       943,000
568.7   The amounts that may be spent from this 
568.8   appropriation for each purpose are as 
568.9   follows: 
568.10  (a) Economic Support Policy  
568.11  Administration
568.12  General               6,528,000     6,191,000
568.13  Federal TANF          2,493,000       943,000
568.14  [FOOD STAMP ADMINISTRATIVE 
568.15  REIMBURSEMENT.] The commissioner shall 
568.16  reduce quarterly food stamp 
568.17  administrative reimbursement to 
568.18  counties in fiscal years 2002 and 2003 
568.19  by the amount that the United States 
568.20  Department of Health and Human Services 
568.21  determines to be the county random 
568.22  moment study share of the food stamp 
568.23  adjustment under Public Law Number 
568.24  105-185.  The reductions shall be 
568.25  allocated to each county in proportion 
568.26  to each county's contribution, if any, 
568.27  to the amount of the adjustment.  Any 
568.28  adjustment to medical assistance 
568.29  administrative reimbursement that is 
568.30  based on the United States Department 
568.31  of Health and Human Services' 
568.32  determinations under Public Law Number 
568.33  105-185 shall be distributed to 
568.34  counties in the same manner.  
568.35  [EMPLOYMENT SERVICES TRACKING SYSTEM.] 
568.36  Of the federal TANF appropriation, 
568.37  $1,750,000 in fiscal year 2002 and 
568.38  $200,000 in fiscal year 2003 are for 
568.39  development of an employment tracking 
568.40  system in collaboration with the 
568.41  department of economic security.  
568.42  Unexpended funds in fiscal year 2002 do 
568.43  not cancel but are available to the 
568.44  commissioner for these purposes in 
568.45  fiscal year 2003.  This is a one-time 
568.46  appropriation and shall not be added to 
568.47  the base-level funding for the 
568.48  2004-2005 biennium. 
568.49  (b) Economic Support Operations 
568.50  General              31,247,000    31,214,000
568.51  Health Care 
568.52  Access                1,318,000     1,318,000
568.53  Federal TANF        ...,-0-,...   ...,-0-,...
568.54  [SPENDING AUTHORITY FOR FOOD STAMP 
568.55  ENHANCED FUNDING.] In the event that 
568.56  Minnesota qualifies for United States 
568.57  Department of Agriculture Food and 
569.1   Nutrition Services Food Stamp Program 
569.2   enhanced funding beginning in federal 
569.3   fiscal year 1998, the money is 
569.4   appropriated to the commissioner for 
569.5   the purposes of the program.  The 
569.6   commissioner shall retain 25 percent of 
569.7   the enhanced funding for the Minnesota 
569.8   food assistance program, with the 
569.9   remaining 75 percent divided among the 
569.10  counties according to a formula that 
569.11  takes into account each county's impact 
569.12  on the statewide food stamp error rate. 
569.13  [FINANCIAL INSTITUTION DATA MATCH AND 
569.14  PAYMENT OF FEES.] The commissioner is 
569.15  authorized to allocate up to $310,000 
569.16  each year in fiscal year 2002 and 
569.17  fiscal year 2003 from the PRISM special 
569.18  revenue account to make payments to 
569.19  financial institutions in exchange for 
569.20  performing data matches between account 
569.21  information held by financial 
569.22  institutions and the public authority's 
569.23  database of child support obligors as 
569.24  authorized by Minnesota Statutes, 
569.25  section 13B.06, subdivision 7. 
569.26  Sec. 3.  COMMISSIONER OF HEALTH 
569.27  Subdivision 1.  Total 
569.28  Appropriation                        138,657,000    138,848,000
569.29                Summary by Fund
569.30  General              87,619,000    86,160,000 
569.31  State Government 
569.32  Special Revenue      24,210,000    25,860,000 
569.33  Health Care 
569.34  Access                6,828,000     6,828,000 
569.35  Federal TANF         20,000,000    20,000,000 
569.36  Subd. 2.  Family and 
569.37  Community Health                      72,535,000     72,847,000 
569.38                Summary by Fund
569.39  General              47,943,000    47,256,000
569.40  State Government 
569.41  Special Revenue         936,000     1,935,000 
569.42  Health Care 
569.43  Access                3,656,000     3,656,000 
569.44  Federal TANF         20,000,000    20,000,000 
569.45  [ELIMINATING HEALTH DISPARITIES.] Of 
569.46  the general fund appropriation, 
569.47  $6,000,000 each year is for reducing 
569.48  health disparities.  Of the amounts 
569.49  available: 
569.50  (1) $1,500,000 each year is for 
569.51  competitive grants under Minnesota 
569.52  Statutes, section 145.928, subdivision 
569.53  7, to eligible applicants to reduce 
569.54  health disparities in infant mortality 
569.55  rates and adult and child immunization 
570.1   rates. 
570.2   (2) $2,000,000 each year is for 
570.3   competitive grants under Minnesota 
570.4   Statutes, section 145.928, subdivision 
570.5   8, to eligible applicants to reduce 
570.6   health disparities in breast and 
570.7   cervical cancer screening rates, 
570.8   HIV/AIDS and sexually transmitted 
570.9   infection rates, cardiovascular disease 
570.10  rates, diabetes rates, and rates of 
570.11  accidental injuries and violence. 
570.12  (3) $500,000 each year is for grants 
570.13  under Minnesota Statutes, section 
570.14  145.928, subdivision 9, to community 
570.15  health boards as defined in Minnesota 
570.16  Statutes, section 145A.02, to improve 
570.17  access to health screening and 
570.18  follow-up services for refugee 
570.19  populations. 
570.20  (4) $2,000,000 each year is for grants 
570.21  to community health boards as defined 
570.22  in Minnesota Statutes, section 145A.02, 
570.23  according to the formula in Minnesota 
570.24  Statutes, section 145.882, subdivision 
570.25  4a, to provide services targeted at 
570.26  reducing maternal and child health 
570.27  disparities. 
570.28  [TEEN PREGNANCY PREVENTION.] 
570.29  $20,000,000 from the TANF fund for the 
570.30  2002-2003 biennium is appropriated to 
570.31  the commissioner of health for a teen 
570.32  pregnancy prevention program.  Of the 
570.33  amounts available: 
570.34  (1) $3,500,000 in fiscal year 2002 and 
570.35  $5,000,000 in fiscal year 2003 are for 
570.36  teen pregnancy prevention disparity 
570.37  grants under Minnesota Statutes, 
570.38  section 145.9257, subdivision 6. 
570.39  (2) $3,000,000 in fiscal year 2002 and 
570.40  $3,000,000 in fiscal year 2003 are for 
570.41  high-risk community teen pregnancy 
570.42  prevention grants under Minnesota 
570.43  Statutes, section 145.9257, subdivision 
570.44  7. 
570.45  (3) $2,000,000 in fiscal year 2002 and 
570.46  $2,000,000 in fiscal year 2003 are for 
570.47  transfer to the commissioner of 
570.48  children, families, and learning to 
570.49  increase the number of adolescent 
570.50  parenting grants. 
570.51  (4) $1,500,000 in fiscal year 2002 is 
570.52  for one-time grants to public school 
570.53  districts to implement an abstinence 
570.54  until marriage curriculum and to train 
570.55  staff to implement the curriculum.  The 
570.56  curriculum shall educate adolescents 
570.57  that abstinence from sexual activity 
570.58  outside of marriage is the expected 
570.59  standard and that sexual activity 
570.60  outside the context of marriage is 
570.61  likely to have harmful emotional, 
570.62  physical, and social effects; and shall 
570.63  provide an explanation of the value of 
571.1   the institution of marriage and a 
571.2   discussion of the historical purpose 
571.3   and significance of marriage.  The 
571.4   commissioner of health, in consultation 
571.5   with the commissioner of children, 
571.6   families, and learning, shall make 
571.7   school districts aware of the 
571.8   availability of funds for this 
571.9   purpose.  This appropriation shall not 
571.10  become part of the base-level funding 
571.11  for this activity. 
571.12  [POISON INFORMATION SYSTEM.] Of the 
571.13  general fund appropriation, $1,360,000 
571.14  each fiscal year is for poison control 
571.15  system grants under Minnesota Statutes, 
571.16  section 145.93.  This is a one-time 
571.17  appropriation that shall not become 
571.18  part of base-level funding in 2004-2005.
571.19  [SUICIDE PREVENTION.] Of the general 
571.20  fund appropriation, $1,100,000 each 
571.21  fiscal year is for suicide prevention 
571.22  activities under Minnesota Statutes, 
571.23  section 145.56.  Of the amounts 
571.24  available: 
571.25  (1) $275,000 each fiscal year is for 
571.26  refining, coordinating, and 
571.27  implementing the suicide prevention 
571.28  plan according to Minnesota Statutes, 
571.29  section 145.56, subdivisions 1, 3, 4, 
571.30  and 5. 
571.31  (2) $825,000 each fiscal year is to 
571.32  fund community-based programs under 
571.33  Minnesota Statutes, section 145.56, 
571.34  subdivision 2. 
571.35  [TANF HOME VISITING PROGRAM.] Of the 
571.36  federal TANF appropriation, $10,000,000 
571.37  in fiscal year 2002 and $10,000,000 in 
571.38  fiscal year 2003 are for family home 
571.39  visiting programs under Minnesota 
571.40  Statutes, section 145A.17.  These 
571.41  amounts include $7,000,000 in fiscal 
571.42  year 2002 and $7,000,000 in fiscal year 
571.43  2003 of appropriations to the 
571.44  commissioner of human services for 
571.45  transfer to the commissioner of health 
571.46  authorized in Laws 2000, chapter 488, 
571.47  article 13, section 15, subdivision 6, 
571.48  clause (3), as amended by Laws 2000, 
571.49  chapter 499, sections 22 and 39. 
571.50  [TANF HOME VISITING CARRYFORWARD.] Any 
571.51  unexpended balance of the TANF funds 
571.52  appropriated for family home visiting 
571.53  in the first year of the biennium does 
571.54  not cancel but is available for the 
571.55  second year. 
571.56  [TEEN PREGNANCY PREVENTION 
571.57  CARRYFORWARD.] Any unexpended balance 
571.58  of the TANF funds appropriated for teen 
571.59  pregnancy prevention in the first 
571.60  fiscal year of the biennium does not 
571.61  cancel but is available for the second 
571.62  year. 
571.63  [WIC TRANSFERS.] The general fund 
572.1   appropriation for the women, infants, 
572.2   and children (WIC) food supplement 
572.3   program is available for either year of 
572.4   the biennium.  Transfers of these funds 
572.5   between fiscal years must be either to 
572.6   maximize federal funds or to minimize 
572.7   fluctuations in the number of program 
572.8   participants. 
572.9   [MINNESOTA CHILDREN WITH SPECIAL HEALTH 
572.10  NEEDS CARRYFORWARD.] General fund 
572.11  appropriations for treatment services 
572.12  in the services for Minnesota children 
572.13  with special health needs program are 
572.14  available for either year of the 
572.15  biennium. 
572.16  [ONE-TIME REDUCTION FOR FAMILY PLANNING 
572.17  SPECIAL PROJECT GRANTS.] For fiscal 
572.18  year 2003, base-level funding for the 
572.19  Family Planning Special Project Grants 
572.20  under Minnesota Statutes, section 
572.21  145.925, shall be reduced by $690,000. 
572.22  Subd. 3.  Access and Quality 
572.23  Improvement                           31,350,000     30,400,000 
572.24                Summary by Fund
572.25  General              21,160,000    20,194,000 
572.26  State Government 
572.27  Special Revenue       7,018,000     7,034,000 
572.28  Health Care 
572.29  Access                3,172,000     3,172,000 
572.30  [HEALTH CARE SAFETY NET.] (1) Of the 
572.31  general fund appropriation, $5,000,000 
572.32  each year is for a grant program to aid 
572.33  safety net community clinics. 
572.34  (2) $5,000,000 each year is for a grant 
572.35  program to provide rural hospital 
572.36  capital improvement grants described in 
572.37  Minnesota Statutes, section 144.148.  
572.38  Subd. 4.  Health Protection           29,808,000     30,639,000 
572.39                Summary by Fund 
572.40  General              13,699,000    13,895,000 
572.41  State Government 
572.42  Special Revenue      16,109,000    16,744,000 
572.43  [EMERGING HEALTH THREATS.] (a) Of the 
572.44  general fund appropriation, $2,200,000 
572.45  in the first year and $2,400,000 in the 
572.46  second year are to increase the state 
572.47  capacity to identify and respond to 
572.48  emerging health threats.  
572.49  (b) Of these amounts, $1,900,000 in the 
572.50  first year and $2,100,000 in the second 
572.51  year are to expand state laboratory 
572.52  capacity to identify infectious disease 
572.53  organisms, evaluate environmental 
572.54  contaminants, develop new analytical 
572.55  techniques, provide emergency response, 
572.56  and support local government by 
573.1   training health care system workers to 
573.2   deal with biological and chemical 
573.3   health threats.  
573.4   (c) $300,000 each year is to train, 
573.5   consult, and otherwise assist local 
573.6   officials responding to clandestine 
573.7   drug laboratories and minimizing health 
573.8   risks to responders and the public.  
573.9   Subd. 5.  Management and 
573.10  Support Services                       4,964,000      4,962,000 
573.11                Summary by Fund
573.12  General               4,817,000     4,815,000 
573.13  State Government 
573.14  Special Revenue         147,000       147,000 
573.15  Sec. 4.  VETERANS NURSING   
573.16  HOMES BOARD                           30,336,000     28,784,000 
573.17  [VETERANS HOMES SPECIAL REVENUE 
573.18  ACCOUNT.] The general fund 
573.19  appropriations made to the board may be 
573.20  transferred to a veterans homes special 
573.21  revenue account in the special revenue 
573.22  fund in the same manner as other 
573.23  receipts are deposited according to 
573.24  Minnesota Statutes, section 198.34, and 
573.25  are appropriated to the board for the 
573.26  operation of board facilities and 
573.27  programs. 
573.28  [SETTING COST OF CARE.] The cost of 
573.29  care for the domiciliary residents at 
573.30  the Minneapolis veterans home for 
573.31  fiscal year 2002 and fiscal year 2003 
573.32  shall be calculated based on 100 
573.33  percent occupancy at each facility. 
573.34  [DEFICIENCY FUNDING.] Of the general 
573.35  fund appropriation in fiscal year 2002, 
573.36  $2,000,000 is available with the 
573.37  approval of the commissioner of 
573.38  finance.  Approval of the commissioner 
573.39  of finance is contingent upon review of 
573.40  the board's submittal of a report 
573.41  outlining the following: 
573.42  (1) a long-term revenue outlook for the 
573.43  homes; 
573.44  (2) a review and recommendation of 
573.45  alternative funding sources for the 
573.46  homes' operations; and 
573.47  (3) administrative and service options 
573.48  to bring cost growth in line with 
573.49  revenues. 
573.50  Sec. 5.  HEALTH-RELATED BOARDS 
573.51  Subdivision 1.  Total       
573.52  Appropriation                         10,800,000     10,892,000 
573.53  [STATE GOVERNMENT SPECIAL REVENUE 
573.54  FUND.] The appropriations in this 
573.55  section are from the state government 
573.56  special revenue fund. 
574.1   [NO SPENDING IN EXCESS OF REVENUES.] 
574.2   The commissioner of finance shall not 
574.3   permit the allotment, encumbrance, or 
574.4   expenditure of money appropriated in 
574.5   this section in excess of the 
574.6   anticipated biennial revenues or 
574.7   accumulated surplus revenues from fees 
574.8   collected by the boards.  Neither this 
574.9   provision nor Minnesota Statutes, 
574.10  section 214.06, applies to transfers 
574.11  from the general contingent account. 
574.12  Subd. 2.  Board of Chiropractic 
574.13  Examiners                                361,000        361,000
574.14  Subd. 3.  Board of Dentistry             806,000        806,000
574.15  Subd. 4.  Board of Dietetic
574.16  and Nutrition Practice                    95,000         95,000
574.17  Subd. 5.  Board of Marriage and 
574.18  Family Therapy                           111,000        111,000
574.19  Subd. 6.  Board of Medical  
574.20  Practice                               3,270,000      3,270,000
574.21  Subd. 7.  Board of Nursing             2,704,000      2,772,000
574.22  [HEALTH PROFESSIONAL SERVICES 
574.23  ACTIVITY.] Of these appropriations, 
574.24  $534,000 in fiscal year 2002 and 
574.25  $566,000 in fiscal year 2003 are for 
574.26  the Health Professional Services 
574.27  Activity. 
574.28  Subd. 8.  Board of Nursing 
574.29  Home Administrators                      194,000        186,000
574.30  Subd. 9.  Board of Optometry              90,000         90,000
574.31  Subd. 10.  Board of Pharmacy           1,301,000      1,316,000
574.32  [ADMINISTRATIVE SERVICES UNIT.] Of this 
574.33  appropriation, $433,000 the first year 
574.34  and $441,000 the second year are for 
574.35  the health boards administrative 
574.36  services unit.  The administrative 
574.37  services unit may receive and expend 
574.38  reimbursements for services performed 
574.39  for other agencies. 
574.40  Subd. 11.  Board of Physical Therapy     185,000        185,000
574.41  Subd. 12.  Board of Podiatry              52,000         42,000
574.42  Subd. 13.  Board of Psychology           653,000        647,000
574.43  Subd. 14.  Board of Social Work          825,000        832,000
574.44  Subd. 15.  Board of Veterinary 
574.45  Medicine                                 153,000        179,000
574.46  Sec. 6.  EMERGENCY MEDICAL
574.47  SERVICES BOARD                         3,033,000      3,037,000 
574.48                Summary by Fund
574.49  General               3,033,000     3,037,000
574.50  [COMPREHENSIVE ADVANCED LIFE SUPPORT 
574.51  (CALS).] $500,000 in fiscal year 2002 
575.1   and $500,000 in fiscal year 2003 are 
575.2   for the comprehensive advanced life 
575.3   support educational program under 
575.4   Minnesota Statutes, section 144E.37. 
575.5   Sec. 7.  COUNCIL ON DISABILITY           692,000        714,000
575.6   Sec. 8.  OMBUDSMAN FOR MENTAL 
575.7   HEALTH AND MENTAL RETARDATION          1,378,000      1,378,000
575.8   Sec. 9.  OMBUDSMAN
575.9   FOR FAMILIES                             171,000        171,000
575.10  Sec. 10.  TRANSFERS 
575.11  Subdivision 1.  Grants
575.12  The commissioner of human services, 
575.13  with the approval of the commissioner 
575.14  of finance, and after notification of 
575.15  the chair of the senate health and 
575.16  family security budget division and the 
575.17  chair of the house health and human 
575.18  services finance committee, may 
575.19  transfer unencumbered appropriation 
575.20  balances for the biennium ending June 
575.21  30, 2003, within fiscal years among the 
575.22  MFIP, general assistance, general 
575.23  assistance medical care, medical 
575.24  assistance, Minnesota supplemental aid, 
575.25  and group residential housing programs, 
575.26  and the entitlement portion of the 
575.27  chemical dependency consolidated 
575.28  treatment fund, and between fiscal 
575.29  years of the biennium. 
575.30  Subd. 2.  Administration
575.31  Positions, salary money, and nonsalary 
575.32  administrative money may be transferred 
575.33  within the departments of human 
575.34  services and health and within the 
575.35  programs operated by the veterans 
575.36  nursing homes board as the 
575.37  commissioners and the board consider 
575.38  necessary, with the advance approval of 
575.39  the commissioner of finance.  The 
575.40  commissioner or the board shall inform 
575.41  the chairs of the house health and 
575.42  human services finance committee and 
575.43  the senate health and family security 
575.44  budget division quarterly about 
575.45  transfers made under this provision. 
575.46  Sec. 11.  INDIRECT COSTS NOT TO
575.47  FUND PROGRAMS.
575.48  The commissioners of health and of 
575.49  human services shall not use indirect 
575.50  cost allocations to pay for the 
575.51  operational costs of any program for 
575.52  which they are responsible. 
575.53  Sec. 12.  CARRYOVER LIMITATION 
575.54  None of the appropriations in this 
575.55  article which are allowed to be carried 
575.56  forward from fiscal year 2002 to fiscal 
575.57  year 2003 shall become part of the base 
575.58  level funding for the 2004-2005 
575.59  biennial budget, unless specifically 
576.1   directed by the legislature. 
576.2   Sec. 13.  SUNSET OF UNCODIFIED LANGUAGE
576.3   All uncodified language contained in 
576.4   this article expires on June 30, 2003, 
576.5   unless a different expiration date is 
576.6   explicit. 
576.7      Sec. 14.  [246.141] [PROJECT LABOR.] 
576.8      Wages for project labor may be paid by the commissioner out 
576.9   of repairs and betterments money if the individual is to be 
576.10  engaged in a construction project or a repair project of 
576.11  short-term and nonrecurring nature.  Compensation for project 
576.12  labor shall be based on the prevailing wage rates, as defined in 
576.13  section 177.42, subdivision 6.  Project laborers are excluded 
576.14  from the provisions of sections 43A.22 to 43A.30, and shall not 
576.15  be eligible for state-paid insurance and benefits.