1.1                          A bill for an act 
  1.2             relating to the operation of state government; 
  1.3             modifying provisions relating to health; health 
  1.4             department; human services; human services department; 
  1.5             long-term care; medical assistance; general assistance 
  1.6             medical care; MinnesotaCare; prescription drug 
  1.7             program; home and community-based waivers; services 
  1.8             for persons with disabilities; group residential 
  1.9             housing; state-operated services; chemical dependency; 
  1.10            mental health; Minnesota family investment program; 
  1.11            general assistance program; child support enforcement; 
  1.12            adoption; children in need of protection or services; 
  1.13            termination of parental rights; child protection; 
  1.14            veterans nursing homes board; health-related licensing 
  1.15            boards; emergency medical services regulatory board; 
  1.16            Minnesota state council on disability; ombudsman for 
  1.17            mental health and mental retardation; ombudsman for 
  1.18            families; adding an informed consent provision for 
  1.19            abortion procedures; requiring reports; appropriating 
  1.20            money; amending Minnesota Statutes 2000, sections 
  1.21            13.46, subdivision 4; 13.461, subdivision 17; 13B.06, 
  1.22            subdivisions 4, 7; 15A.083, subdivision 4; 16A.06, by 
  1.23            adding a subdivision; 16A.87; 62A.095, subdivision 1; 
  1.24            62A.48, subdivision 4, by adding subdivisions; 
  1.25            62J.152, subdivision 8; 62J.451, subdivision 5; 
  1.26            62J.692, subdivision 7; 62J.694, subdivision 2; 
  1.27            62Q.19, subdivision 2; 62S.01, by adding subdivisions; 
  1.28            62S.26; 103I.101, subdivision 6; 103I.112; 103I.208, 
  1.29            subdivisions 1, 2; 103I.235, subdivision 1; 103I.525, 
  1.30            subdivisions 2, 6, 8, 9; 103I.531, subdivisions 2, 6, 
  1.31            8, 9; 103I.535, subdivisions 2, 6, 8, 9; 103I.541, 
  1.32            subdivisions 2b, 4, 5; 103I.545; 116L.11, subdivision 
  1.33            4; 116L.12, subdivisions 4, 5; 116L.13, subdivision 1; 
  1.34            121A.15, by adding subdivisions; 144.057; 144.0721, 
  1.35            subdivision 1; 144.1202, subdivision 4; 144.122; 
  1.36            144.1464; 144.148, subdivision 2; 144.1494, 
  1.37            subdivisions 1, 3, 4; 144.1496; 144.226, subdivision 
  1.38            4; 144.396, subdivision 7; 144.98, subdivision 3; 
  1.39            144A.071, subdivisions 1, 1a, 2, 4a; 144A.073, 
  1.40            subdivision 2; 145.881, subdivision 2; 145.882, 
  1.41            subdivision 7, by adding a subdivision; 145.885, 
  1.42            subdivision 2; 145.925, subdivision 1; 148.212; 
  1.43            148.263, subdivision 2; 148.284; 150A.10, by adding a 
  1.44            subdivision; 157.16, subdivision 3; 157.22; 214.001, 
  1.45            by adding a subdivision; 214.002, subdivision 1; 
  1.46            214.01, by adding a subdivision; 214.104; 241.272, 
  2.1             subdivision 6; 242.192; 245.462, subdivision 18, by 
  2.2             adding subdivisions; 245.466, subdivision 2; 245.470, 
  2.3             by adding a subdivision; 245.474, subdivision 2, by 
  2.4             adding a subdivision; 245.4871, subdivision 27, by 
  2.5             adding subdivisions; 245.4875, subdivision 2; 
  2.6             245.4876, subdivision 1, by adding a subdivision; 
  2.7             245.488, by adding a subdivision; 245.4885, 
  2.8             subdivision 1; 245.4886, subdivision 1; 245.98, by 
  2.9             adding a subdivision; 245.982; 245.99, subdivision 4; 
  2.10            245A.03, subdivision 2b; 245A.04, subdivisions 3, 3a, 
  2.11            3b, 3c, 3d; 245A.05; 245A.06; 245A.07; 245A.08; 
  2.12            245A.13, subdivisions 7, 8; 245A.16, subdivision 1; 
  2.13            245B.08, subdivision 3; 252.275, subdivision 4b; 
  2.14            253.28, by adding a subdivision; 253B.02, subdivision 
  2.15            10; 253B.03, subdivisions 5, 10, by adding a 
  2.16            subdivision; 253B.04, subdivisions 1, 1a, by adding a 
  2.17            subdivision; 253B.045, subdivision 6; 253B.05, 
  2.18            subdivision 1; 253B.07, subdivision 1; 253B.09, 
  2.19            subdivision 1; 253B.10, subdivision 4; 254B.03, 
  2.20            subdivision 1; 254B.09, by adding a subdivision; 
  2.21            256.01, subdivision 2, by adding a subdivision; 
  2.22            256.045, subdivisions 3, 3b, 4; 256.476, subdivisions 
  2.23            1, 2, 3, 4, 5, 8, by adding a subdivision; 256.741, 
  2.24            subdivisions 1, 5, 8; 256.955, subdivisions 2, 2a, 7, 
  2.25            by adding a subdivision; 256.9657, subdivision 2; 
  2.26            256.969, subdivision 3a, by adding a subdivision; 
  2.27            256.975, by adding subdivisions; 256.979, subdivisions 
  2.28            5, 6; 256.98, subdivision 8; 256B.02, subdivision 7; 
  2.29            256B.04, by adding a subdivision; 256B.055, 
  2.30            subdivision 3a; 256B.056, subdivisions 1a, 4, 4b; 
  2.31            256B.057, subdivisions 2, 9, by adding subdivisions; 
  2.32            256B.061; 256B.0625, subdivisions 7, 13, 13a, 17, 17a, 
  2.33            18a, 19a, 19c, 20, 30, 34, by adding subdivisions; 
  2.34            256B.0627, subdivisions 1, 2, 4, 5, 7, 8, 10, 11, by 
  2.35            adding subdivisions; 256B.0635, subdivisions 1, 2; 
  2.36            256B.0644; 256B.0911, subdivisions 1, 3, 5, 6, 7, by 
  2.37            adding subdivisions; 256B.0913, subdivisions 1, 2, 4, 
  2.38            5, 6, 7, 8, 9, 10, 11, 12, 13, 14; 256B.0915, 
  2.39            subdivisions 1d, 3, 5; 256B.0917, by adding a 
  2.40            subdivision; 256B.093, subdivision 3; 256B.431, 
  2.41            subdivision 2e, by adding subdivisions; 256B.433, 
  2.42            subdivision 3a; 256B.434, subdivision 4; 256B.49, by 
  2.43            adding subdivisions; 256B.5012, subdivision 3, by 
  2.44            adding subdivisions; 256B.69, subdivisions 4, 5c, 23, 
  2.45            by adding a subdivision; 256B.75; 256B.76; 256D.053, 
  2.46            subdivision 1; 256D.35, by adding subdivisions; 
  2.47            256D.425, subdivision 1; 256D.44, subdivision 5; 
  2.48            256I.05, subdivisions 1d, 1e, by adding a subdivision; 
  2.49            256J.08, subdivision 55a, by adding a subdivision; 
  2.50            256J.21, subdivision 2; 256J.24, subdivisions 2, 9, 
  2.51            10; 256J.31, subdivision 12; 256J.32, subdivision 4; 
  2.52            256J.37, subdivision 9; 256J.39, subdivision 2; 
  2.53            256J.42, subdivisions 1, 3, 4, 5; 256J.45, 
  2.54            subdivisions 1, 2; 256J.46, subdivision 1; 256J.48, 
  2.55            subdivision 1, by adding a subdivision; 256J.49, 
  2.56            subdivisions 2, 13, by adding a subdivision; 256J.50, 
  2.57            subdivisions 5, 10, by adding a subdivision; 256J.515; 
  2.58            256J.52, subdivisions 2, 3, 6; 256J.53, subdivisions 
  2.59            1, 2, 3; 256J.56; 256J.62, subdivisions 2a, 9; 
  2.60            256J.625; 256J.645; 256K.03, subdivisions 1, 5; 
  2.61            256K.07; 256L.01, subdivision 4; 256L.04, subdivision 
  2.62            2; 256L.05, subdivision 2; 256L.06, subdivision 3; 
  2.63            256L.07, subdivisions 1, 2, 3, by adding subdivisions; 
  2.64            256L.12, by adding a subdivision; 256L.15, 
  2.65            subdivisions 1, 2; 256L.16; 257.0725; 260C.201, 
  2.66            subdivision 1; 326.38; 393.07, by adding a 
  2.67            subdivision; 518.551, subdivision 13; 518.5513, 
  2.68            subdivision 5; 518.575, subdivision 1; 518.5851, by 
  2.69            adding a subdivision; 518.5853, by adding a 
  2.70            subdivision; 518.6111, subdivision 5; 518.6195; 
  2.71            518.64, subdivision 2; 518.641, subdivisions 1, 2, 3, 
  3.1             by adding a subdivision; 548.091, subdivision 1a; 
  3.2             609.115, subdivision 9; 611.23; 626.556, subdivisions 
  3.3             2, 10, 10b, 10d, 10e, 10f, 10i, 11, 12, by adding a 
  3.4             subdivision; 245.814, subdivision 1; 626.557, 
  3.5             subdivisions 3, 9d, 12b; 626.5572, subdivision 17; 
  3.6             626.559, subdivision 2; Laws 1998, chapter 404, 
  3.7             section 18, subdivision 4; Laws 1998, chapter 407, 
  3.8             article 8, section 9; Laws 1999, chapter 152, section 
  3.9             4; Laws 1999, chapter 216, article 1, section 13, 
  3.10            subdivision 4; Laws 1999, chapter 245, article 3, 
  3.11            section 45, as amended; Laws 1999, chapter 245, 
  3.12            article 4, section 110; Laws 1999, chapter 245, 
  3.13            article 10, section 10, as amended; Laws 2000, chapter 
  3.14            364, section 2; proposing coding for new law in 
  3.15            Minnesota Statutes, chapters 62Q; 62S; 116L; 144; 
  3.16            144A; 145; 214; 241; 244; 246; 256; 256B; 256J; 299A; 
  3.17            repealing Minnesota Statutes 2000, sections 16A.76; 
  3.18            116L.12, subdivisions 2, 7; 144.148, subdivision 8; 
  3.19            144A.16; 145.882, subdivisions 3, 4; 145.9245; 
  3.20            145.927; 256.01, subdivision 18; 256.476, subdivision 
  3.21            7; 256.955, subdivision 2b; 256B.0635, subdivision 3; 
  3.22            256B.0911, subdivisions 2, 2a, 4, 8, 9; 256B.0912; 
  3.23            256B.0913, subdivisions 3, 15a, 15b, 15c, 16; 
  3.24            256B.0915, subdivisions 3a, 3b, 3c; 256B.434, 
  3.25            subdivision 5; 256B.49, subdivisions 1, 2, 3, 4, 5, 6, 
  3.26            7, 8, 9, 10; 256D.066; 256E.06, subdivision 2b; 
  3.27            256J.08, subdivision 50a; 256J.12, subdivision 3; 
  3.28            256J.32, subdivision 7a; 256J.43; 256J.49, subdivision 
  3.29            11; 256J.53, subdivision 4; 256L.15, subdivision 3; 
  3.30            518.641, subdivisions 4, 5; Laws 1997, chapter 203, 
  3.31            article 9, section 21; Laws 1998, chapter 404, section 
  3.32            18, subdivision 4; Laws 1998, chapter 407, article 6, 
  3.33            section 111; Laws 2000, chapter 488, article 10, 
  3.34            section 28; Laws 2000, chapter 488, article 10, 
  3.35            section 30; Minnesota Rules, parts 4655.6810; 
  3.36            4655.6820; 4655.6830; 4658.1600; 4658.1605; 4658.1610; 
  3.37            4658.1690; 9505.2390; 9505.2395; 9505.2396; 9505.2400; 
  3.38            9505.2405; 9505.2410; 9505.2413; 9505.2415; 9505.2420; 
  3.39            9505.2425; 9505.2426; 9505.2430; 9505.2435; 9505.2440; 
  3.40            9505.2445; 9505.2450; 9505.2455; 9505.2458; 9505.2460; 
  3.41            9505.2465; 9505.2470; 9505.2473; 9505.2475; 9505.2480; 
  3.42            9505.2485; 9505.2486; 9505.2490; 9505.2495; 9505.2496; 
  3.43            9505.2500; 9505.3010; 9505.3015; 9505.3020; 9505.3025; 
  3.44            9505.3030; 9505.3035; 9505.3040; 9505.3065; 9505.3085; 
  3.45            9505.3135; 9505.3500; 9505.3510; 9505.3520; 9505.3530; 
  3.46            9505.3535; 9505.3540; 9505.3545; 9505.3550; 9505.3560; 
  3.47            9505.3570; 9505.3575; 9505.3580; 9505.3585; 9505.3600; 
  3.48            9505.3610; 9505.3620; 9505.3622; 9505.3624; 9505.3626; 
  3.49            9505.3630; 9505.3635; 9505.3640; 9505.3645; 9505.3650; 
  3.50            9505.3660; 9505.3670; 9546.0010; 9546.0020; 9546.0030; 
  3.51            9546.0040; 9546.0050; 9546.0060. 
  3.52  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  3.53                             ARTICLE 1 
  3.54                        DEPARTMENT OF HEALTH 
  3.55     Section 1.  Minnesota Statutes 2000, section 62J.152, 
  3.56  subdivision 8, is amended to read: 
  3.57     Subd. 8.  [REPEALER.] This section and sections 62J.15 and 
  3.58  62J.156 are repealed effective July 1, 2001 2005. 
  3.59     Sec. 2.  Minnesota Statutes 2000, section 62J.451, 
  3.60  subdivision 5, is amended to read: 
  3.61     Subd. 5.  [HEALTH CARE ELECTRONIC DATA INTERCHANGE 
  4.1   SYSTEM.] (a) The health data institute shall establish an 
  4.2   electronic data interchange system that electronically 
  4.3   transmits, collects, archives, and provides users of data with 
  4.4   the data necessary for their specific interests, in order to 
  4.5   promote a high quality, cost-effective, consumer-responsive 
  4.6   health care system.  This public-private information system 
  4.7   shall be developed to make health care claims processing and 
  4.8   financial settlement transactions more efficient and to provide 
  4.9   an efficient, unobtrusive method for meeting the shared 
  4.10  electronic data interchange needs of consumers, group 
  4.11  purchasers, providers, and the state. 
  4.12     (b) The health data institute shall operate the Minnesota 
  4.13  center for health care electronic data interchange established 
  4.14  in section 62J.57, and shall integrate the goals, objectives, 
  4.15  and activities of the center with those of the health data 
  4.16  institute's electronic data interchange system. 
  4.17     Sec. 3.  Minnesota Statutes 2000, section 103I.101, 
  4.18  subdivision 6, is amended to read: 
  4.19     Subd. 6.  [FEES FOR VARIANCES.] The commissioner shall 
  4.20  charge a nonrefundable application fee of $120 $150 to cover the 
  4.21  administrative cost of processing a request for a variance or 
  4.22  modification of rules adopted by the commissioner under this 
  4.23  chapter. 
  4.24     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
  4.25     Sec. 4.  Minnesota Statutes 2000, section 103I.112, is 
  4.26  amended to read: 
  4.27     103I.112 [FEE EXEMPTIONS FOR STATE AND LOCAL GOVERNMENT.] 
  4.28     (a) The commissioner of health may not charge fees required 
  4.29  under this chapter to a federal agency, state agency, or a local 
  4.30  unit of government or to a subcontractor performing work for the 
  4.31  state agency or local unit of government.  
  4.32     (b) "Local unit of government" means a statutory or home 
  4.33  rule charter city, town, county, or soil and water conservation 
  4.34  district, watershed district, an organization formed for the 
  4.35  joint exercise of powers under section 471.59, a board of health 
  4.36  or community health board, or other special purpose district or 
  5.1   authority with local jurisdiction in water and related land 
  5.2   resources management. 
  5.3      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
  5.4      Sec. 5.  Minnesota Statutes 2000, section 103I.208, 
  5.5   subdivision 1, is amended to read: 
  5.6      Subdivision 1.  [WELL NOTIFICATION FEE.] The well 
  5.7   notification fee to be paid by a property owner is:  
  5.8      (1) for a new well, $120 $150, which includes the state 
  5.9   core function fee; 
  5.10     (2) for a well sealing, $20 $30 for each well, which 
  5.11  includes the state core function fee, except that for monitoring 
  5.12  wells constructed on a single property, having depths within a 
  5.13  25 foot range, and sealed within 48 hours of start of 
  5.14  construction, a single fee of $20 $30; and 
  5.15     (3) for construction of a dewatering well, $120 $150, which 
  5.16  includes the state core function fee, for each well except a 
  5.17  dewatering project comprising five or more wells shall be 
  5.18  assessed a single fee of $600 $750 for the wells recorded on the 
  5.19  notification. 
  5.20     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
  5.21     Sec. 6.  Minnesota Statutes 2000, section 103I.208, 
  5.22  subdivision 2, is amended to read: 
  5.23     Subd. 2.  [PERMIT FEE.] The permit fee to be paid by a 
  5.24  property owner is:  
  5.25     (1) for a well that is not in use under a maintenance 
  5.26  permit, $100 $125 annually; 
  5.27     (2) for construction of a monitoring well, $120 $150, which 
  5.28  includes the state core function fee; 
  5.29     (3) for a monitoring well that is unsealed under a 
  5.30  maintenance permit, $100 $125 annually; 
  5.31     (4) for monitoring wells used as a leak detection device at 
  5.32  a single motor fuel retail outlet, a single petroleum bulk 
  5.33  storage site excluding tank farms, or a single agricultural 
  5.34  chemical facility site, the construction permit fee 
  5.35  is $120 $150, which includes the state core function fee, per 
  5.36  site regardless of the number of wells constructed on the site, 
  6.1   and the annual fee for a maintenance permit for unsealed 
  6.2   monitoring wells is $100 $125 per site regardless of the number 
  6.3   of monitoring wells located on site; 
  6.4      (5) for a groundwater thermal exchange device, in addition 
  6.5   to the notification fee for wells, $120 $150, which includes the 
  6.6   state core function fee; 
  6.7      (6) for a vertical heat exchanger, $120 $150; 
  6.8      (7) for a dewatering well that is unsealed under a 
  6.9   maintenance permit, $100 $125 annually for each well, except a 
  6.10  dewatering project comprising more than five wells shall be 
  6.11  issued a single permit for $500 $625 annually for wells recorded 
  6.12  on the permit; and 
  6.13     (8) for excavating holes for the purpose of installing 
  6.14  elevator shafts, $120 $150 for each hole. 
  6.15     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
  6.16     Sec. 7.  Minnesota Statutes 2000, section 103I.235, 
  6.17  subdivision 1, is amended to read: 
  6.18     Subdivision 1.  [DISCLOSURE OF WELLS TO BUYER.] (a) Before 
  6.19  signing an agreement to sell or transfer real property, the 
  6.20  seller must disclose in writing to the buyer information about 
  6.21  the status and location of all known wells on the property, by 
  6.22  delivering to the buyer either a statement by the seller that 
  6.23  the seller does not know of any wells on the property, or a 
  6.24  disclosure statement indicating the legal description and 
  6.25  county, and a map drawn from available information showing the 
  6.26  location of each well to the extent practicable.  In the 
  6.27  disclosure statement, the seller must indicate, for each well, 
  6.28  whether the well is in use, not in use, or sealed.  
  6.29     (b) At the time of closing of the sale, the disclosure 
  6.30  statement information, name and mailing address of the buyer, 
  6.31  and the quartile, section, township, and range in which each 
  6.32  well is located must be provided on a well disclosure 
  6.33  certificate signed by the seller or a person authorized to act 
  6.34  on behalf of the seller. 
  6.35     (c) A well disclosure certificate need not be provided if 
  6.36  the seller does not know of any wells on the property and the 
  7.1   deed or other instrument of conveyance contains the statement:  
  7.2   "The Seller certifies that the Seller does not know of any wells 
  7.3   on the described real property."  
  7.4      (d) If a deed is given pursuant to a contract for deed, the 
  7.5   well disclosure certificate required by this subdivision shall 
  7.6   be signed by the buyer or a person authorized to act on behalf 
  7.7   of the buyer.  If the buyer knows of no wells on the property, a 
  7.8   well disclosure certificate is not required if the following 
  7.9   statement appears on the deed followed by the signature of the 
  7.10  grantee or, if there is more than one grantee, the signature of 
  7.11  at least one of the grantees:  "The Grantee certifies that the 
  7.12  Grantee does not know of any wells on the described real 
  7.13  property."  The statement and signature of the grantee may be on 
  7.14  the front or back of the deed or on an attached sheet and an 
  7.15  acknowledgment of the statement by the grantee is not required 
  7.16  for the deed to be recordable. 
  7.17     (e) This subdivision does not apply to the sale, exchange, 
  7.18  or transfer of real property:  
  7.19     (1) that consists solely of a sale or transfer of severed 
  7.20  mineral interests; or 
  7.21     (2) that consists of an individual condominium unit as 
  7.22  described in chapters 515 and 515B. 
  7.23     (f) For an area owned in common under chapter 515 or 515B 
  7.24  the association or other responsible person must report to the 
  7.25  commissioner by July 1, 1992, the location and status of all 
  7.26  wells in the common area.  The association or other responsible 
  7.27  person must notify the commissioner within 30 days of any change 
  7.28  in the reported status of wells. 
  7.29     (g) For real property sold by the state under section 
  7.30  92.67, the lessee at the time of the sale is responsible for 
  7.31  compliance with this subdivision. 
  7.32     (h) If the seller fails to provide a required well 
  7.33  disclosure certificate, the buyer, or a person authorized to act 
  7.34  on behalf of the buyer, may sign a well disclosure certificate 
  7.35  based on the information provided on the disclosure statement 
  7.36  required by this section or based on other available information.
  8.1      (i) A county recorder or registrar of titles may not record 
  8.2   a deed or other instrument of conveyance dated after October 31, 
  8.3   1990, for which a certificate of value is required under section 
  8.4   272.115, or any deed or other instrument of conveyance dated 
  8.5   after October 31, 1990, from a governmental body exempt from the 
  8.6   payment of state deed tax, unless the deed or other instrument 
  8.7   of conveyance contains the statement made in accordance with 
  8.8   paragraph (c) or (d) or is accompanied by the well disclosure 
  8.9   certificate containing all the information required by paragraph 
  8.10  (b) or (d).  The county recorder or registrar of titles must not 
  8.11  accept a certificate unless it contains all the required 
  8.12  information.  The county recorder or registrar of titles shall 
  8.13  note on each deed or other instrument of conveyance accompanied 
  8.14  by a well disclosure certificate that the well disclosure 
  8.15  certificate was received.  The notation must include the 
  8.16  statement "No wells on property" if the disclosure certificate 
  8.17  states there are no wells on the property.  The well disclosure 
  8.18  certificate shall not be filed or recorded in the records 
  8.19  maintained by the county recorder or registrar of titles.  After 
  8.20  noting "No wells on property" on the deed or other instrument of 
  8.21  conveyance, the county recorder or registrar of titles shall 
  8.22  destroy or return to the buyer the well disclosure certificate.  
  8.23  The county recorder or registrar of titles shall collect from 
  8.24  the buyer or the person seeking to record a deed or other 
  8.25  instrument of conveyance, a fee of $20 $30 for receipt of a 
  8.26  completed well disclosure certificate.  By the tenth day of each 
  8.27  month, the county recorder or registrar of titles shall transmit 
  8.28  the well disclosure certificates to the commissioner of health.  
  8.29  By the tenth day after the end of each calendar quarter, the 
  8.30  county recorder or registrar of titles shall transmit to the 
  8.31  commissioner of health $17.50 $27.50 of the fee for each well 
  8.32  disclosure certificate received during the quarter.  The 
  8.33  commissioner shall maintain the well disclosure certificate for 
  8.34  at least six years.  The commissioner may store the certificate 
  8.35  as an electronic image.  A copy of that image shall be as valid 
  8.36  as the original. 
  9.1      (j) No new well disclosure certificate is required under 
  9.2   this subdivision if the buyer or seller, or a person authorized 
  9.3   to act on behalf of the buyer or seller, certifies on the deed 
  9.4   or other instrument of conveyance that the status and number of 
  9.5   wells on the property have not changed since the last previously 
  9.6   filed well disclosure certificate.  The following statement, if 
  9.7   followed by the signature of the person making the statement, is 
  9.8   sufficient to comply with the certification requirement of this 
  9.9   paragraph:  "I am familiar with the property described in this 
  9.10  instrument and I certify that the status and number of wells on 
  9.11  the described real property have not changed since the last 
  9.12  previously filed well disclosure certificate."  The 
  9.13  certification and signature may be on the front or back of the 
  9.14  deed or on an attached sheet and an acknowledgment of the 
  9.15  statement is not required for the deed or other instrument of 
  9.16  conveyance to be recordable. 
  9.17     (k) The commissioner in consultation with county recorders 
  9.18  shall prescribe the form for a well disclosure certificate and 
  9.19  provide well disclosure certificate forms to county recorders 
  9.20  and registrars of titles and other interested persons. 
  9.21     (l) Failure to comply with a requirement of this 
  9.22  subdivision does not impair: 
  9.23     (1) the validity of a deed or other instrument of 
  9.24  conveyance as between the parties to the deed or instrument or 
  9.25  as to any other person who otherwise would be bound by the deed 
  9.26  or instrument; or 
  9.27     (2) the record, as notice, of any deed or other instrument 
  9.28  of conveyance accepted for filing or recording contrary to the 
  9.29  provisions of this subdivision. 
  9.30     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
  9.31     Sec. 8.  Minnesota Statutes 2000, section 103I.525, 
  9.32  subdivision 2, is amended to read: 
  9.33     Subd. 2.  [APPLICATION FEE.] The application fee for a well 
  9.34  contractor's license is $50 $75.  The commissioner may not act 
  9.35  on an application until the application fee is paid.  
  9.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 10.1      Sec. 9.  Minnesota Statutes 2000, section 103I.525, 
 10.2   subdivision 6, is amended to read: 
 10.3      Subd. 6.  [LICENSE FEE.] The fee for a well contractor's 
 10.4   license is $250, except the fee for an individual well 
 10.5   contractor's license is $50 $75. 
 10.6      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 10.7      Sec. 10.  Minnesota Statutes 2000, section 103I.525, 
 10.8   subdivision 8, is amended to read: 
 10.9      Subd. 8.  [RENEWAL.] (a) A licensee must file an 
 10.10  application and a renewal application fee to renew the license 
 10.11  by the date stated in the license.  
 10.12     (b) The renewal application fee shall be set by the 
 10.13  commissioner under section 16A.1285 for a well contractor's 
 10.14  license is $250.  
 10.15     (c) The renewal application must include information that 
 10.16  the applicant has met continuing education requirements 
 10.17  established by the commissioner by rule.  
 10.18     (d) At the time of the renewal, the commissioner must have 
 10.19  on file all properly completed well reports, well sealing 
 10.20  reports, reports of excavations to construct elevator shafts, 
 10.21  well permits, and well notifications for work conducted by the 
 10.22  licensee since the last license renewal. 
 10.23     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 10.24     Sec. 11.  Minnesota Statutes 2000, section 103I.525, 
 10.25  subdivision 9, is amended to read: 
 10.26     Subd. 9.  [INCOMPLETE OR LATE RENEWAL.] If a licensee fails 
 10.27  to submit all information required for renewal in subdivision 8 
 10.28  or submits the application and information after the required 
 10.29  renewal date: 
 10.30     (1) the licensee must include an additional a late fee set 
 10.31  by the commissioner of $75; and 
 10.32     (2) the licensee may not conduct activities authorized by 
 10.33  the well contractor's license until the renewal application, 
 10.34  renewal application fee, late fee, and all other information 
 10.35  required in subdivision 8 are submitted. 
 10.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 11.1      Sec. 12.  Minnesota Statutes 2000, section 103I.531, 
 11.2   subdivision 2, is amended to read: 
 11.3      Subd. 2.  [APPLICATION FEE.] The application fee for a 
 11.4   limited well/boring contractor's license is $50 $75.  The 
 11.5   commissioner may not act on an application until the application 
 11.6   fee is paid.  
 11.7      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 11.8      Sec. 13.  Minnesota Statutes 2000, section 103I.531, 
 11.9   subdivision 6, is amended to read: 
 11.10     Subd. 6.  [LICENSE FEE.] The fee for a limited well/boring 
 11.11  contractor's license is $50 $75.  
 11.12     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 11.13     Sec. 14.  Minnesota Statutes 2000, section 103I.531, 
 11.14  subdivision 8, is amended to read: 
 11.15     Subd. 8.  [RENEWAL.] (a) A person must file an application 
 11.16  and a renewal application fee to renew the limited well/boring 
 11.17  contractor's license by the date stated in the license.  
 11.18     (b) The renewal application fee shall be set by the 
 11.19  commissioner under section 16A.1285 for a limited well/boring 
 11.20  contractor's license is $75.  
 11.21     (c) The renewal application must include information that 
 11.22  the applicant has met continuing education requirements 
 11.23  established by the commissioner by rule.  
 11.24     (d) At the time of the renewal, the commissioner must have 
 11.25  on file all properly completed well sealing reports, well 
 11.26  permits, vertical heat exchanger permits, and well notifications 
 11.27  for work conducted by the licensee since the last license 
 11.28  renewal. 
 11.29     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 11.30     Sec. 15.  Minnesota Statutes 2000, section 103I.531, 
 11.31  subdivision 9, is amended to read: 
 11.32     Subd. 9.  [INCOMPLETE OR LATE RENEWAL.] If a licensee fails 
 11.33  to submit all information required for renewal in subdivision 8 
 11.34  or submits the application and information after the required 
 11.35  renewal date: 
 11.36     (1) the licensee must include an additional a late fee set 
 12.1   by the commissioner of $75; and 
 12.2      (2) the licensee may not conduct activities authorized by 
 12.3   the limited well/boring contractor's license until the renewal 
 12.4   application, renewal application fee, and late fee, and all 
 12.5   other information required in subdivision 8 are submitted. 
 12.6      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 12.7      Sec. 16.  Minnesota Statutes 2000, section 103I.535, 
 12.8   subdivision 2, is amended to read: 
 12.9      Subd. 2.  [APPLICATION FEE.] The application fee for an 
 12.10  elevator shaft contractor's license is $50 $75.  The 
 12.11  commissioner may not act on an application until the application 
 12.12  fee is paid. 
 12.13     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 12.14     Sec. 17.  Minnesota Statutes 2000, section 103I.535, 
 12.15  subdivision 6, is amended to read: 
 12.16     Subd. 6.  [LICENSE FEE.] The fee for an elevator shaft 
 12.17  contractor's license is $50 $75.  
 12.18     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 12.19     Sec. 18.  Minnesota Statutes 2000, section 103I.535, 
 12.20  subdivision 8, is amended to read: 
 12.21     Subd. 8.  [RENEWAL.] (a) A person must file an application 
 12.22  and a renewal application fee to renew the license by the date 
 12.23  stated in the license.  
 12.24     (b) The renewal application fee shall be set by the 
 12.25  commissioner under section 16A.1285 for an elevator shaft 
 12.26  contractor's license is $75.  
 12.27     (c) The renewal application must include information that 
 12.28  the applicant has met continuing education requirements 
 12.29  established by the commissioner by rule.  
 12.30     (d) At the time of renewal, the commissioner must have on 
 12.31  file all reports and permits for elevator shaft work conducted 
 12.32  by the licensee since the last license renewal. 
 12.33     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 12.34     Sec. 19.  Minnesota Statutes 2000, section 103I.535, 
 12.35  subdivision 9, is amended to read: 
 12.36     Subd. 9.  [INCOMPLETE OR LATE RENEWAL.] If a licensee fails 
 13.1   to submit all information required for renewal in subdivision 8 
 13.2   or submits the application and information after the required 
 13.3   renewal date: 
 13.4      (1) the licensee must include an additional a late fee set 
 13.5   by the commissioner of $75; and 
 13.6      (2) the licensee may not conduct activities authorized by 
 13.7   the elevator shaft contractor's license until the renewal 
 13.8   application, renewal application fee, and late fee, and all 
 13.9   other information required in subdivision 8 are submitted. 
 13.10     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 13.11     Sec. 20.  Minnesota Statutes 2000, section 103I.541, 
 13.12  subdivision 2b, is amended to read: 
 13.13     Subd. 2b.  [APPLICATION FEE.] The application fee for a 
 13.14  monitoring well contractor registration is $50 $75.  The 
 13.15  commissioner may not act on an application until the application 
 13.16  fee is paid.  
 13.17     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 13.18     Sec. 21.  Minnesota Statutes 2000, section 103I.541, 
 13.19  subdivision 4, is amended to read: 
 13.20     Subd. 4.  [RENEWAL.] (a) A person must file an application 
 13.21  and a renewal application fee to renew the registration by the 
 13.22  date stated in the registration.  
 13.23     (b) The renewal application fee shall be set by the 
 13.24  commissioner under section 16A.1285 for a monitoring well 
 13.25  contractor's registration is $75.  
 13.26     (c) The renewal application must include information that 
 13.27  the applicant has met continuing education requirements 
 13.28  established by the commissioner by rule.  
 13.29     (d) At the time of the renewal, the commissioner must have 
 13.30  on file all well reports, well sealing reports, well permits, 
 13.31  and notifications for work conducted by the registered person 
 13.32  since the last registration renewal. 
 13.33     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 13.34     Sec. 22.  Minnesota Statutes 2000, section 103I.541, 
 13.35  subdivision 5, is amended to read: 
 13.36     Subd. 5.  [INCOMPLETE OR LATE RENEWAL.] If a registered 
 14.1   person submits a renewal application after the required renewal 
 14.2   date: 
 14.3      (1) the registered person must include an additional a late 
 14.4   fee set by the commissioner of $75; and 
 14.5      (2) the registered person may not conduct activities 
 14.6   authorized by the monitoring well contractor's registration 
 14.7   until the renewal application, renewal application fee, late 
 14.8   fee, and all other information required in subdivision 4 are 
 14.9   submitted. 
 14.10     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 14.11     Sec. 23.  Minnesota Statutes 2000, section 103I.545, is 
 14.12  amended to read: 
 14.13     103I.545 [REGISTRATION OF DRILLING MACHINES REQUIRED.] 
 14.14     Subdivision 1.  [DRILLING MACHINE.] (a) A person may not 
 14.15  use a drilling machine such as a cable tool, rotary tool, hollow 
 14.16  rod tool, or auger for a drilling activity requiring a license 
 14.17  or registration under this chapter unless the drilling machine 
 14.18  is registered with the commissioner.  
 14.19     (b) A person must apply for the registration on forms 
 14.20  prescribed by the commissioner and submit a $50 $75 registration 
 14.21  fee. 
 14.22     (c) A registration is valid for one year.  
 14.23     Subd. 2.  [PUMP HOIST.] (a) A person may not use a machine 
 14.24  such as a pump hoist for an activity requiring a license or 
 14.25  registration under this chapter to repair wells or borings, seal 
 14.26  wells or borings, or install pumps unless the machine is 
 14.27  registered with the commissioner.  
 14.28     (b) A person must apply for the registration on forms 
 14.29  prescribed by the commissioner and submit a $50 $75 registration 
 14.30  fee. 
 14.31     (c) A registration is valid for one year. 
 14.32     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 14.33     Sec. 24.  Minnesota Statutes 2000, section 144.1202, 
 14.34  subdivision 4, is amended to read: 
 14.35     Subd. 4.  [AGREEMENT; CONDITIONS OF IMPLEMENTATION.] (a) An 
 14.36  agreement entered into before August 2, 2002 2003, must remain 
 15.1   in effect until terminated under the Atomic Energy Act of 1954, 
 15.2   United States Code, title 42, section 2021, paragraph (j).  The 
 15.3   governor may not enter into an initial agreement with the 
 15.4   Nuclear Regulatory Commission after August 1, 2002 2003.  If an 
 15.5   agreement is not entered into by August 1, 2002 2003, any rules 
 15.6   adopted under this section are repealed effective August 1, 2002 
 15.7   2003. 
 15.8      (b) An agreement authorized under subdivision 1 must be 
 15.9   approved by law before it may be implemented. 
 15.10     Sec. 25.  [144.1205] [RADIOACTIVE MATERIAL; SOURCE AND 
 15.11  SPECIAL NUCLEAR MATERIAL; FEES; INSPECTION.] 
 15.12     Subdivision 1.  [APPLICATION AND LICENSE RENEWAL FEE.] When 
 15.13  a license is required for radioactive material or source or 
 15.14  special nuclear material by a rule adopted under section 
 15.15  144.1202, subdivision 2, an application fee according to 
 15.16  subdivision 4 must be paid upon initial application for a 
 15.17  license.  The licensee must renew the license 60 days before the 
 15.18  expiration date of the license by paying a license renewal fee 
 15.19  equal to the application fee under subdivision 4.  The 
 15.20  expiration date of a license is the date set by the United 
 15.21  States Nuclear Regulatory Commission before transfer of the 
 15.22  licensing program under section 144.1202 and thereafter as 
 15.23  specified by rule of the commissioner of health. 
 15.24     Subd. 2.  [ANNUAL FEE.] A licensee must pay an annual fee 
 15.25  at least 60 days before the anniversary date of the issuance of 
 15.26  the license.  The annual fee is an amount equal to 80 percent of 
 15.27  the application fee under subdivision 4, rounded to the nearest 
 15.28  whole dollar. 
 15.29     Subd. 3.  [FEE CATEGORIES; INCORPORATION OF FEDERAL 
 15.30  LICENSING CATEGORIES.] (a) Fee categories under this section are 
 15.31  equivalent to the licensing categories used by the United States 
 15.32  Nuclear Regulatory Commission under Code of Federal Regulations, 
 15.33  title 10, parts 30 to 36, 39, 40, 70, 71, and 150, except as 
 15.34  provided in paragraph (b). 
 15.35     (b) The category of "Academic, small" is the type of 
 15.36  license required for the use of radioactive materials in a 
 16.1   teaching institution.  Radioactive materials are limited to ten 
 16.2   radionuclides not to exceed a total activity amount of one curie.
 16.3      Subd. 4.  [APPLICATION FEE.] A licensee must pay an 
 16.4   application fee as follows: 
 16.5   Radioactive material,  Application    U.S. Nuclear Regulatory
 16.6   source and             fee            Commission licensing
 16.7   special material                      category as reference
 16.9   Type A broadscope      $20,000        Medical institution type A
 16.10  Type B broadscope      $15,000        Research and development
 16.11                                        type B
 16.12  Type C broadscope      $10,000        Academic type C
 16.13  Medical use            $4,000         Medical
 16.14                                        Medical institution
 16.15                                        Medical private practice
 16.16  Mobile nuclear                                                 
 16.17  medical laboratory     $4,000         Mobile medical laboratory
 16.18  Medical special use                                     
 16.19  sealed sources         $6,000         Teletherapy
 16.20                                        High dose rate remote
 16.21                                        afterloaders
 16.22                                        Stereotactic
 16.23                                        radiosurgery devices
 16.24  In vitro testing       $2,300         In vitro testing
 16.25                                        laboratories
 16.26  Measuring gauge,
 16.27  sealed sources         $2,000         Fixed gauges
 16.28                                        Portable gauges
 16.29                                        Analytical instruments
 16.30                                        Measuring systems - other
 16.31  Gas chromatographs     $1,200         Gas chromatographs
 16.32  Manufacturing and 
 16.33  distribution           $14,700        Manufacturing and 
 16.34                                        distribution - other
 16.35  Distribution only      $8,800         Distribution of
 16.36                                        radioactive material
 17.1                                         for commercial use only
 17.2   Other services         $1,500         Other services
 17.3   Nuclear medicine 
 17.4   pharmacy               $4,100         Nuclear pharmacy
 17.5   Waste disposal         $9,400         Waste disposal service
 17.6                                         prepackage
 17.7                                         Waste disposal service
 17.8                                         processing/repackage
 17.9   Waste storage only     $7,000         To receive and store
 17.10                                        radioactive material waste
 17.11  Industrial
 17.12  radiography            $8,400         Industrial radiography
 17.13                                        fixed location
 17.14                                        Industrial radiography
 17.15                                        portable/temporary sites
 17.16  Irradiator - 
 17.17  self-shielded          $4,100         Irradiators self-shielded
 17.18                                        less than 10,000 curies
 17.19  Irradiator - 
 17.20  less than 10,000 Ci    $7,500         Irradiators less than
 17.21                                        10,000 curies
 17.22  Irradiator - 
 17.23  more than 10,000 Ci    $11,500        Irradiators greater than
 17.24                                        10,000 curies
 17.25  Research and
 17.26  development,
 17.27  no distribution        $4,100         Research and development
 17.28  Radioactive material 
 17.29  possession only        $1,000         Byproduct possession only
 17.30  Source material        $1,000         Source material shielding
 17.31  Special nuclear 
 17.32  material, less than 
 17.33  200 grams              $1,000         Special nuclear material
 17.34                                        plutonium-neutron sources
 17.35                                        less than 200 grams
 17.36  Pacemaker
 18.1   manufacturing          $1,000         Pacemaker byproduct
 18.2                                         and/or special nuclear
 18.3                                         material - medical
 18.4                                         institution
 18.5   General license
 18.6   distribution           $2,100         General license
 18.7                                         distribution
 18.8   General license 
 18.9   distribution, exempt   $1,500         General license 
 18.10                                        distribution -
 18.11                                        certain exempt items
 18.12  Academic, small        $1,000         Possession limit of ten
 18.13                                        radionuclides, not to
 18.14                                        exceed a total of one curie
 18.15                                        of activity
 18.16  Veterinary             $2,000         Veterinary use
 18.17  Well logging           $5,000         Well logging
 18.18     Subd. 5.  [PENALTY FOR LATE PAYMENT.] An annual fee or a 
 18.19  license renewal fee submitted to the commissioner after the due 
 18.20  date specified by rule must be accompanied by an additional 
 18.21  amount equal to 25 percent of the fee due. 
 18.22     Subd. 6.  [INSPECTIONS.] The commissioner of health shall 
 18.23  make periodic safety inspections of the radioactive material and 
 18.24  source and special nuclear material of a licensee.  The 
 18.25  commissioner shall prescribe the frequency of safety inspections 
 18.26  by rule. 
 18.27     Subd. 7.  [RECOVERY OF REINSPECTION COST.] If the 
 18.28  commissioner finds serious violations of public health standards 
 18.29  during an inspection under subdivision 6, the licensee must pay 
 18.30  all costs associated with subsequent reinspection of the 
 18.31  source.  The costs shall be the actual costs incurred by the 
 18.32  commissioner and include, but are not limited to, labor, 
 18.33  transportation, per diem, materials, legal fees, testing, and 
 18.34  monitoring costs. 
 18.35     Subd. 8.  [RECIPROCITY FEE.] A licensee submitting an 
 18.36  application for reciprocal recognition of a materials license 
 19.1   issued by another agreement state or the United States Nuclear 
 19.2   Regulatory Commission for a period of 180 days or less during a 
 19.3   calendar year must pay one-half of the application fee specified 
 19.4   under subdivision 4.  For a period of 181 days or more, the 
 19.5   licensee must pay the entire application fee under subdivision 4.
 19.6      Subd. 9.  [FEES FOR LICENSE AMENDMENTS.] A licensee must 
 19.7   pay a fee to amend a license as follows: 
 19.8      (1) to amend a license requiring no license review 
 19.9   including, but not limited to, facility name change or removal 
 19.10  of a previously authorized user, no fee; 
 19.11     (2) to amend a license requiring review including, but not 
 19.12  limited to, addition of isotopes, procedure changes, new 
 19.13  authorized users, or a new radiation safety officer, $200; and 
 19.14     (3) to amend a license requiring review and a site visit 
 19.15  including, but not limited to, facility move or addition of 
 19.16  processes, $400. 
 19.17     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 19.18     Sec. 26.  Minnesota Statutes 2000, section 144.122, is 
 19.19  amended to read: 
 19.20     144.122 [LICENSE, PERMIT, AND SURVEY FEES.] 
 19.21     (a) The state commissioner of health, by rule, may 
 19.22  prescribe reasonable procedures and fees for filing with the 
 19.23  commissioner as prescribed by statute and for the issuance of 
 19.24  original and renewal permits, licenses, registrations, and 
 19.25  certifications issued under authority of the commissioner.  The 
 19.26  expiration dates of the various licenses, permits, 
 19.27  registrations, and certifications as prescribed by the rules 
 19.28  shall be plainly marked thereon.  Fees may include application 
 19.29  and examination fees and a penalty fee for renewal applications 
 19.30  submitted after the expiration date of the previously issued 
 19.31  permit, license, registration, and certification.  The 
 19.32  commissioner may also prescribe, by rule, reduced fees for 
 19.33  permits, licenses, registrations, and certifications when the 
 19.34  application therefor is submitted during the last three months 
 19.35  of the permit, license, registration, or certification period.  
 19.36  Fees proposed to be prescribed in the rules shall be first 
 20.1   approved by the department of finance.  All fees proposed to be 
 20.2   prescribed in rules shall be reasonable.  The fees shall be in 
 20.3   an amount so that the total fees collected by the commissioner 
 20.4   will, where practical, approximate the cost to the commissioner 
 20.5   in administering the program.  All fees collected shall be 
 20.6   deposited in the state treasury and credited to the state 
 20.7   government special revenue fund unless otherwise specifically 
 20.8   appropriated by law for specific purposes. 
 20.9      (b) The commissioner may charge a fee for voluntary 
 20.10  certification of medical laboratories and environmental 
 20.11  laboratories, and for environmental and medical laboratory 
 20.12  services provided by the department, without complying with 
 20.13  paragraph (a) or chapter 14.  Fees charged for environment and 
 20.14  medical laboratory services provided by the department must be 
 20.15  approximately equal to the costs of providing the services.  
 20.16     (c) The commissioner may develop a schedule of fees for 
 20.17  diagnostic evaluations conducted at clinics held by the services 
 20.18  for children with handicaps program.  All receipts generated by 
 20.19  the program are annually appropriated to the commissioner for 
 20.20  use in the maternal and child health program. 
 20.21     (d) The commissioner, for fiscal years 1996 and beyond, 
 20.22  shall set license fees for hospitals and nursing homes that are 
 20.23  not boarding care homes at the following levels: 
 20.24  Joint Commission on Accreditation of Healthcare 
 20.25  Organizations (JCAHO hospitals)      $1,017
 20.26                                       $7,055
 20.27  Non-JCAHO hospitals                  $762 plus $34 per bed
 20.28                                       $4,680 plus $234 per bed
 20.29  Nursing home                         $78 plus $19 per bed
 20.30     For fiscal years 1996 and beyond, the commissioner shall 
 20.31  set license fees for outpatient surgical centers, boarding care 
 20.32  homes, and supervised living facilities at the following levels: 
 20.33  Outpatient surgical centers          $517
 20.34                                       $1,512
 20.35  Boarding care homes                  $78 plus $19 per bed
 20.36                                       $183 plus $91 per bed
 21.1   Supervised living facilities         $78 plus $19 per bed
 21.2                                        $183 plus $91 per bed.
 21.3      (e) Unless prohibited by federal law, the commissioner of 
 21.4   health shall charge applicants the following fees to cover the 
 21.5   cost of any initial certification surveys required to determine 
 21.6   a provider's eligibility to participate in the Medicare or 
 21.7   Medicaid program: 
 21.8   Prospective payment surveys for          $  900
 21.9   hospitals
 21.11  Swing bed surveys for nursing homes      $1,200
 21.13  Psychiatric hospitals                    $1,400
 21.15  Rural health facilities                  $1,100
 21.17  Portable X-ray providers                 $  500
 21.19  Home health agencies                     $1,800
 21.21  Outpatient therapy agencies              $  800
 21.23  End stage renal dialysis providers       $2,100
 21.25  Independent therapists                   $  800
 21.27  Comprehensive rehabilitation             $1,200
 21.28  outpatient facilities
 21.30  Hospice providers                        $1,700
 21.32  Ambulatory surgical providers            $1,800
 21.34  Hospitals                                $4,200
 21.36  Other provider categories or             Actual surveyor costs:
 21.37  additional resurveys required            average surveyor cost x
 21.38  to complete initial certification        number of hours for the
 21.39                                           survey process.
 21.40     These fees shall be submitted at the time of the 
 21.41  application for federal certification and shall not be 
 21.42  refunded.  All fees collected after the date that the imposition 
 21.43  of fees is not prohibited by federal law shall be deposited in 
 21.44  the state treasury and credited to the state government special 
 21.45  revenue fund. 
 21.46     Sec. 27.  Minnesota Statutes 2000, section 144.1464, is 
 21.47  amended to read: 
 21.48     144.1464 [SUMMER HEALTH CARE INTERNS.] 
 21.49     Subdivision 1.  [SUMMER INTERNSHIPS.] The commissioner of 
 21.50  health, through a contract with a nonprofit organization as 
 21.51  required by subdivision 4, shall award grants to hospitals and, 
 22.1   clinics, nursing facilities, and home care providers to 
 22.2   establish a secondary and post-secondary summer health care 
 22.3   intern program.  The purpose of the program is to expose 
 22.4   interested secondary and post-secondary pupils to various 
 22.5   careers within the health care profession. 
 22.6      Subd. 2.  [CRITERIA.] (a) The commissioner, through the 
 22.7   organization under contract, shall award grants to 
 22.8   hospitals and, clinics, nursing facilities, and home care 
 22.9   providers that agree to:  
 22.10     (1) provide secondary and post-secondary summer health care 
 22.11  interns with formal exposure to the health care profession; 
 22.12     (2) provide an orientation for the secondary and 
 22.13  post-secondary summer health care interns; 
 22.14     (3) pay one-half the costs of employing the secondary and 
 22.15  post-secondary summer health care intern, based on an overall 
 22.16  hourly wage that is at least the minimum wage but does not 
 22.17  exceed $6 an hour; 
 22.18     (4) interview and hire secondary and post-secondary pupils 
 22.19  for a minimum of six weeks and a maximum of 12 weeks; and 
 22.20     (5) employ at least one secondary student for each 
 22.21  post-secondary student employed, to the extent that there are 
 22.22  sufficient qualifying secondary student applicants. 
 22.23     (b) In order to be eligible to be hired as a secondary 
 22.24  summer health intern by a hospital or, clinic, nursing facility, 
 22.25  or home care provider, a pupil must: 
 22.26     (1) intend to complete high school graduation requirements 
 22.27  and be between the junior and senior year of high school; and 
 22.28     (2) be from a school district in proximity to the facility; 
 22.29  and 
 22.30     (3) provide the facility with a letter of recommendation 
 22.31  from a health occupations or science educator. 
 22.32     (c) In order to be eligible to be hired as a post-secondary 
 22.33  summer health care intern by a hospital or clinic, a pupil must: 
 22.34     (1) intend to complete a health care training program or a 
 22.35  two-year or four-year degree program and be planning on 
 22.36  enrolling in or be enrolled in that training program or degree 
 23.1   program; and 
 23.2      (2) be enrolled in a Minnesota educational institution or 
 23.3   be a resident of the state of Minnesota; priority must be given 
 23.4   to applicants from a school district or an educational 
 23.5   institution in proximity to the facility; and 
 23.6      (3) provide the facility with a letter of recommendation 
 23.7   from a health occupations or science educator. 
 23.8      (d) Hospitals and, clinics, nursing facilities, and home 
 23.9   care providers awarded grants may employ pupils as secondary and 
 23.10  post-secondary summer health care interns beginning on or after 
 23.11  June 15, 1993, if they agree to pay the intern, during the 
 23.12  period before disbursement of state grant money, with money 
 23.13  designated as the facility's 50 percent contribution towards 
 23.14  internship costs.  
 23.15     Subd. 3.  [GRANTS.] The commissioner, through the 
 23.16  organization under contract, shall award separate grants to 
 23.17  hospitals and, clinics, nursing facilities, and home care 
 23.18  providers meeting the requirements of subdivision 2.  The grants 
 23.19  must be used to pay one-half of the costs of employing secondary 
 23.20  and post-secondary pupils in a hospital or, clinic, nursing 
 23.21  facility, or home care setting during the course of the 
 23.22  program.  No more than 50 percent of the participants may be 
 23.23  post-secondary students, unless the program does not receive 
 23.24  enough qualified secondary applicants per fiscal year.  No more 
 23.25  than five pupils may be selected from any secondary or 
 23.26  post-secondary institution to participate in the program and no 
 23.27  more than one-half of the number of pupils selected may be from 
 23.28  the seven-county metropolitan area. 
 23.29     Subd. 4.  [CONTRACT.] The commissioner shall contract with 
 23.30  a statewide, nonprofit organization representing facilities at 
 23.31  which secondary and post-secondary summer health care interns 
 23.32  will serve, to administer the grant program established by this 
 23.33  section.  Grant funds that are not used in one fiscal year may 
 23.34  be carried over to the next fiscal year.  The organization 
 23.35  awarded the grant shall provide the commissioner with any 
 23.36  information needed by the commissioner to evaluate the program, 
 24.1   in the form and at the times specified by the commissioner. 
 24.2      Sec. 28.  Minnesota Statutes 2000, section 144.148, 
 24.3   subdivision 2, is amended to read: 
 24.4      Subd. 2.  [PROGRAM.] The commissioner of health shall award 
 24.5   rural hospital capital improvement grants to eligible rural 
 24.6   hospitals.  A grant shall not exceed $300,000 $1,000,000 per 
 24.7   hospital. Prior to the receipt of any grant, the hospital must 
 24.8   certify to the commissioner that at least one-quarter of the 
 24.9   grant amount, which may include in-kind services, is available 
 24.10  for the same purposes from nonstate resources. 
 24.11     Sec. 29.  Minnesota Statutes 2000, section 144.1494, 
 24.12  subdivision 1, is amended to read: 
 24.13     Subdivision 1.  [CREATION OF ACCOUNT.] A rural physician 
 24.14  Education account is accounts are established in the health care 
 24.15  access fund and the general fund.  The commissioner shall use 
 24.16  money from the account to establish a loan forgiveness program 
 24.17  for medical residents agreeing to practice in designated rural 
 24.18  areas, as defined by the commissioner.  Appropriations made 
 24.19  to this account these accounts do not cancel and are available 
 24.20  until expended, except that at the end of each biennium the 
 24.21  commissioner shall cancel to the health care access fund or 
 24.22  general fund, as applicable, any remaining unobligated 
 24.23  balance in this accounts. 
 24.24     Sec. 30.  Minnesota Statutes 2000, section 144.1494, 
 24.25  subdivision 3, is amended to read: 
 24.26     Subd. 3.  [LOAN FORGIVENESS.] For each fiscal year after 
 24.27  1995, The commissioner may accept up to 12 22 applicants a year 
 24.28  who are medical residents for participation in the loan 
 24.29  forgiveness program with payment for the first 12 applicants 
 24.30  accepted to be made out of the health care access fund education 
 24.31  account and payment for the remaining applicants accepted to be 
 24.32  made out of the general fund education account.  The 12 resident 
 24.33  applicants may be in any year of residency training; however, 
 24.34  priority must be given to the following categories of residents 
 24.35  in descending order:  third year residents, second year 
 24.36  residents, and first year residents. Applicants are responsible 
 25.1   for securing their own loans.  Applicants chosen to participate 
 25.2   in the loan forgiveness program may designate for each year of 
 25.3   medical school, up to a maximum of four years, an agreed amount, 
 25.4   not to exceed $10,000, as a qualified loan.  For each year that 
 25.5   a participant serves as a physician in a designated rural area, 
 25.6   up to a maximum of four years, the commissioner shall annually 
 25.7   pay an amount equal to one year of qualified loans.  
 25.8   Participants who move their practice from one designated rural 
 25.9   area to another remain eligible for loan repayment.  In 
 25.10  addition, in any year that a resident participating in the loan 
 25.11  forgiveness program serves at least four weeks during a year of 
 25.12  residency substituting for a rural physician to temporarily 
 25.13  relieve the rural physician of rural practice commitments to 
 25.14  enable the rural physician to take a vacation, engage in 
 25.15  activities outside the practice area, or otherwise be relieved 
 25.16  of rural practice commitments, the participating resident may 
 25.17  designate up to an additional $2,000, above the $10,000 yearly 
 25.18  maximum.  
 25.19     Sec. 31.  Minnesota Statutes 2000, section 144.1494, 
 25.20  subdivision 4, is amended to read: 
 25.21     Subd. 4.  [PENALTY FOR NONFULFILLMENT.] If a participant 
 25.22  does not fulfill the required three-year minimum commitment of 
 25.23  service in a designated rural area, the commissioner shall 
 25.24  collect from the participant the amount paid under the loan 
 25.25  forgiveness program.  The commissioner shall deposit the money 
 25.26  collected in the rural physician education account collections 
 25.27  in the health care access fund or the general fund, as 
 25.28  applicable, to be credited to the accounts established in 
 25.29  subdivision 1.  The commissioner shall allow waivers of all or 
 25.30  part of the money owed the commissioner if emergency 
 25.31  circumstances prevented fulfillment of the three-year service 
 25.32  commitment.  
 25.33     Sec. 32.  Minnesota Statutes 2000, section 144.1496, is 
 25.34  amended to read: 
 25.35     144.1496 [NURSES IN NURSING HOMES OR, ICFMRS, OR HOME 
 25.36  HEALTH CARE AGENCIES.] 
 26.1      Subdivision 1.  [CREATION OF THE ACCOUNT.] An Education 
 26.2   account accounts in the health care access fund is and the 
 26.3   general fund are established for a loan forgiveness program for 
 26.4   nurses who agree to practice nursing in a nursing home or, 
 26.5   intermediate care facility for persons with mental retardation 
 26.6   or related conditions, or home health care agency.  The account 
 26.7   consists accounts consist of money appropriated by the 
 26.8   legislature and repayments and penalties collected under 
 26.9   subdivision 4.  Money from the account accounts must be used for 
 26.10  a loan forgiveness program. 
 26.11     Subd. 2.  [ELIGIBILITY.] To be eligible to participate in 
 26.12  the loan forgiveness program, a person enrolled in a program of 
 26.13  study designed to prepare the person to become a registered 
 26.14  nurse or licensed practical nurse must submit an application to 
 26.15  the commissioner before completion of a nursing education 
 26.16  program.  A nurse who is selected to participate must sign a 
 26.17  contract to agree to serve a minimum one-year service obligation 
 26.18  providing nursing services in a licensed nursing home or, 
 26.19  intermediate care facility for persons with mental retardation 
 26.20  or related conditions, or home health care agency, which shall 
 26.21  begin no later than March following completion of a nursing 
 26.22  program or loan forgiveness program selection.  
 26.23     Subd. 3.  [LOAN FORGIVENESS.] The commissioner may accept 
 26.24  up to ten 177 applicants a year with payment for the first ten 
 26.25  applicants accepted to be made out of the health care access 
 26.26  fund education account and payment for the remaining applicants 
 26.27  accepted to be made out of the general fund education account.  
 26.28  Applicants are responsible for securing their own loans.  For 
 26.29  each year of nursing education, for up to two years, applicants 
 26.30  accepted into the loan forgiveness program may designate an 
 26.31  agreed amount, not to exceed $3,000, as a qualified loan.  For 
 26.32  each year that a participant practices nursing in a nursing home 
 26.33  or, intermediate care facility for persons with mental 
 26.34  retardation or related conditions, or home health care agency, 
 26.35  up to a maximum of two years, the commissioner shall annually 
 26.36  repay an amount equal to one year of qualified loans.  
 27.1   Participants who move from one nursing home or, intermediate 
 27.2   care facility for persons with mental retardation or related 
 27.3   conditions, or home health care agency to another remain 
 27.4   eligible for loan repayment.  
 27.5      Subd. 4.  [PENALTY FOR NONFULFILLMENT.] If a participant 
 27.6   does not fulfill the service commitment required under 
 27.7   subdivision 3 for full repayment of all qualified loans, the 
 27.8   commissioner shall collect from the participant 100 percent of 
 27.9   any payments made for qualified loans and interest at a rate 
 27.10  established according to section 270.75.  The commissioner shall 
 27.11  deposit the collections in the health care access fund or the 
 27.12  general fund, as applicable, to be credited to the account 
 27.13  accounts established in subdivision 1.  The commissioner may 
 27.14  grant a waiver of all or part of the money owed as a result of a 
 27.15  nonfulfillment penalty if emergency circumstances prevented 
 27.16  fulfillment of the required service commitment. 
 27.17     Subd. 5.  [RULES.] The commissioner may adopt rules to 
 27.18  implement this section. 
 27.19     Sec. 33.  [144.1499] [PROMOTION OF HEALTH CARE AND 
 27.20  LONG-TERM CARE CAREERS.] 
 27.21     The commissioner of health, in consultation with an 
 27.22  organization representing health care employers, long-term care 
 27.23  employers, and educational institutions, may make grants to 
 27.24  qualifying consortia as defined in section 116L.11, subdivision 
 27.25  4, for intergenerational programs to encourage middle and high 
 27.26  school students to work and volunteer in health care and 
 27.27  long-term care settings.  To qualify for a grant under this 
 27.28  section, a consortium shall:  
 27.29     (1) develop a health and long-term care careers curriculum 
 27.30  that provides career exploration and training in national skill 
 27.31  standards for health care and long-term care and that is 
 27.32  consistent with Minnesota graduation standards and other related 
 27.33  requirements; 
 27.34     (2) offer programs for high school students that provide 
 27.35  training in health and long-term care careers with credits that 
 27.36  articulate into post-secondary programs; and 
 28.1      (3) provide technical support to the participating health 
 28.2   care and long-term care employer to enable the use of the 
 28.3   employer's facilities and programs for kindergarten to grade 12 
 28.4   health and long-term care careers education.  
 28.5      Sec. 34.  [144.1501] [RURAL PHARMACISTS LOAN FORGIVENESS.] 
 28.6      Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
 28.7   section, the terms defined in this subdivision have the meanings 
 28.8   given them. 
 28.9      (b) "Designated rural area" means:  
 28.10     (1) an area in Minnesota outside the counties of Anoka, 
 28.11  Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, 
 28.12  excluding the cities of Duluth, Mankato, Moorhead, Rochester, 
 28.13  and St. Cloud; or 
 28.14     (2) a municipal corporation, as defined under section 
 28.15  471.634, that is physically located, in whole or in part, in an 
 28.16  area defined as a designated rural area under clause (1).  
 28.17     Designated rural areas may be further defined by the 
 28.18  commissioner of health to reflect a shortage of pharmacists as 
 28.19  indicated by the ratio of pharmacists to population and the 
 28.20  distance to the next nearest pharmacy. 
 28.21     (c) "Qualifying educational loans" means government, 
 28.22  commercial, and foundation loans for actual costs paid for 
 28.23  tuition, reasonable education expenses, and reasonable living 
 28.24  expenses related to the graduate or undergraduate education of a 
 28.25  pharmacist. 
 28.26     Subd. 2.  [CREATION OF ACCOUNT; LOAN FORGIVENESS 
 28.27  PROGRAM.] A rural pharmacist education account is established in 
 28.28  the general fund.  The commissioner of health shall use money 
 28.29  from the account to establish a loan forgiveness program for 
 28.30  pharmacists who agree to practice in designated rural areas.  
 28.31  The commissioner may seek advice in establishing the program 
 28.32  from the pharmacists association, the University of Minnesota, 
 28.33  and other interested parties. 
 28.34     Subd. 3.  [ELIGIBILITY.] To be eligible to participate in 
 28.35  the loan forgiveness program, a pharmacy student must submit an 
 28.36  application to the commissioner of health while attending a 
 29.1   program of study designed to prepare the individual to become a 
 29.2   licensed pharmacist.  For fiscal year 2002, applicants may have 
 29.3   graduated from a pharmacy program in calendar year 2001.  A 
 29.4   pharmacy student who is accepted into the loan forgiveness 
 29.5   program must sign a contract to agree to serve a minimum 
 29.6   three-year service obligation within a designated rural area, 
 29.7   which shall begin no later than March 31 of the first year 
 29.8   following completion of a pharmacy program or residency.  If 
 29.9   fewer applications are submitted by pharmacy students than there 
 29.10  are participant slots available, the commissioner may consider 
 29.11  applications submitted by pharmacy program graduates who are 
 29.12  licensed pharmacists.  Pharmacists selected for loan forgiveness 
 29.13  must comply with all terms and conditions of this section.  
 29.14     Subd. 4.  [LOAN FORGIVENESS.] The commissioner of health 
 29.15  may accept up to 14 applicants per year for participation in the 
 29.16  loan forgiveness program.  Applicants are responsible for 
 29.17  securing their own loans.  The commissioner shall select 
 29.18  participants based on their suitability for rural practice, as 
 29.19  indicated by rural experience or training.  The commissioner 
 29.20  shall give preference to applicants closest to completing their 
 29.21  training.  For each year that a participant serves as a 
 29.22  pharmacist in a designated rural area as required under 
 29.23  subdivision 3, up to a maximum of four years, the commissioner 
 29.24  shall make annual disbursements directly to the participant 
 29.25  equivalent to $5,000 per year of service, not to exceed $20,000 
 29.26  or the balance of the qualifying educational loans, whichever is 
 29.27  less.  Before receiving loan repayment disbursements and as 
 29.28  requested, the participant must complete and return to the 
 29.29  commissioner an affidavit of practice form provided by the 
 29.30  commissioner verifying that the participant is practicing as 
 29.31  required in an eligible area.  The participant must provide the 
 29.32  commissioner with verification that the full amount of loan 
 29.33  repayment disbursement received by the participant has been 
 29.34  applied toward the qualifying educational loans.  After each 
 29.35  disbursement, verification must be received by the commissioner 
 29.36  and approved before the next loan repayment disbursement is 
 30.1   made. Participants who move their practice from one designated 
 30.2   rural area to another remain eligible for loan repayment. 
 30.3      Subd. 5.  [PENALTY FOR NONFULFILLMENT.] If a participant 
 30.4   does not fulfill the service commitment under subdivision 3, the 
 30.5   commissioner of health shall collect from the participant 100 
 30.6   percent of any payments made for qualified educational loans and 
 30.7   interest at a rate established according to section 270.75.  The 
 30.8   commissioner shall deposit the money collected in the rural 
 30.9   pharmacist education account established under subdivision 2. 
 30.10     Subd. 6.  [SUSPENSION OR WAIVER OF OBLIGATION.] Payment or 
 30.11  service obligations cancel in the event of a participant's 
 30.12  death.  The commissioner of health may waive or suspend payment 
 30.13  or service obligations in cases of total and permanent 
 30.14  disability or long-term temporary disability lasting for more 
 30.15  than two years.  The commissioner shall evaluate all other 
 30.16  requests for suspension or waivers on a case-by-case basis and 
 30.17  may grant a waiver of all or part of the money owed as a result 
 30.18  of a nonfulfillment penalty if emergency circumstances prevented 
 30.19  fulfillment of the required service commitment. 
 30.20     Sec. 35.  [144.1502] [DENTISTS LOAN FORGIVENESS.] 
 30.21     Subdivision 1.  [DEFINITION.] For purposes of this section, 
 30.22  "qualifying educational loans" means government, commercial, and 
 30.23  foundation loans for actual costs paid for tuition, reasonable 
 30.24  education expenses, and reasonable living expenses related to 
 30.25  the graduate or undergraduate education of a dentist. 
 30.26     Subd. 2.  [CREATION OF ACCOUNT; LOAN FORGIVENESS 
 30.27  PROGRAM.] A dentist education account is established in the 
 30.28  general fund.  The commissioner of health shall use money from 
 30.29  the account to establish a loan forgiveness program for dentists 
 30.30  who agree to care for substantial numbers of state public 
 30.31  program participants and other low- to moderate-income uninsured 
 30.32  patients. 
 30.33     Subd. 3.  [ELIGIBILITY.] To be eligible to participate in 
 30.34  the loan forgiveness program, a dental student must submit an 
 30.35  application to the commissioner of health while attending a 
 30.36  program of study designed to prepare the individual to become a 
 31.1   licensed dentist.  For fiscal year 2002, applicants may have 
 31.2   graduated from a dentistry program in calendar year 2001.  A 
 31.3   dental student who is accepted into the loan forgiveness program 
 31.4   must sign a contract to agree to serve a minimum three-year 
 31.5   service obligation during which at least 25 percent of the 
 31.6   dentist's yearly patient encounters are delivered to state 
 31.7   public program enrollees or patients receiving sliding fee 
 31.8   schedule discounts through a formal sliding fee schedule meeting 
 31.9   the standards established by the United States Department of 
 31.10  Health and Human Services under Code of Federal Regulations, 
 31.11  title 42, section 51, chapter 303.  The service obligation shall 
 31.12  begin no later than March 31 of the first year following 
 31.13  completion of training.  If fewer applications are submitted by 
 31.14  dental students than there are participant slots available, the 
 31.15  commissioner may consider applications submitted by dental 
 31.16  program graduates who are licensed dentists.  Dentists selected 
 31.17  for loan forgiveness must comply with all terms and conditions 
 31.18  of this section.  
 31.19     Subd. 4.  [LOAN FORGIVENESS.] The commissioner of health 
 31.20  may accept up to 14 applicants per year for participation in the 
 31.21  loan forgiveness program.  Applicants are responsible for 
 31.22  securing their own loans.  The commissioner shall select 
 31.23  participants based on their suitability for practice serving 
 31.24  public program patients, as indicated by experience or 
 31.25  training.  The commissioner shall give preference to applicants 
 31.26  who have attended a Minnesota dentistry educational institution 
 31.27  and to applicants closest to completing their training.  For 
 31.28  each year that a participant meets the service obligation 
 31.29  required under subdivision 3, up to a maximum of four years, the 
 31.30  commissioner shall make annual disbursements directly to the 
 31.31  participant equivalent to $10,000 per year of service, not to 
 31.32  exceed $40,000 or the balance of the qualifying educational 
 31.33  loans, whichever is less.  Before receiving loan repayment 
 31.34  disbursements and as requested, the participant must complete 
 31.35  and return to the commissioner an affidavit of practice form 
 31.36  provided by the commissioner verifying that the participant is 
 32.1   practicing as required under subdivision 3.  The participant 
 32.2   must provide the commissioner with verification that the full 
 32.3   amount of loan repayment disbursement received by the 
 32.4   participant has been applied toward the designated loans.  After 
 32.5   each disbursement, verification must be received by the 
 32.6   commissioner and approved before the next loan repayment 
 32.7   disbursement is made.  Participants who move their practice 
 32.8   remain eligible for loan repayment as long as they practice as 
 32.9   required under subdivision 3. 
 32.10     Subd. 5.  [PENALTY FOR NONFULFILLMENT.] If a participant 
 32.11  does not fulfill the service commitment under subdivision 3, the 
 32.12  commissioner of health shall collect from the participant 100 
 32.13  percent of any payments made for qualified educational loans and 
 32.14  interest at a rate established according to section 270.75.  The 
 32.15  commissioner shall deposit the money collected in the dentist 
 32.16  education account established under subdivision 2. 
 32.17     Subd. 6.  [SUSPENSION OR WAIVER OF OBLIGATION.] Payment or 
 32.18  service obligations cancel in the event of a participant's 
 32.19  death.  The commissioner of health may waive or suspend payment 
 32.20  or service obligations in cases of total and permanent 
 32.21  disability or long-term temporary disability lasting for more 
 32.22  than two years.  The commissioner shall evaluate all other 
 32.23  requests for suspension or waivers on a case-by-case basis and 
 32.24  may grant a waiver of all or part of the money owed as a result 
 32.25  of a nonfulfillment penalty if emergency circumstances prevented 
 32.26  fulfillment of the required service commitment. 
 32.27     Sec. 36.  [144.1503] [RURAL MENTAL HEALTH PROFESSIONAL LOAN 
 32.28  FORGIVENESS.] 
 32.29     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
 32.30  section, the terms defined in this subdivision have the meanings 
 32.31  given them. 
 32.32     (b) "Designated rural area" means: 
 32.33     (1) an area in Minnesota outside the counties of Anoka, 
 32.34  Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, 
 32.35  excluding the cities of Duluth, Mankato, Moorhead, Rochester, 
 32.36  and St. Cloud; or 
 33.1      (2) a municipal corporation, as defined under section 
 33.2   471.634, that is physically located, in whole or in part, in an 
 33.3   area defined as a designated rural area under clause (1). 
 33.4      (c) "Mental health professional" means a psychologist, 
 33.5   clinical social worker, marriage and family therapist, or 
 33.6   psychiatric nurse. 
 33.7      (d) "Qualifying educational loans" means government, 
 33.8   commercial, and foundation loans for actual costs paid for 
 33.9   tuition, reasonable education expenses, and reasonable living 
 33.10  expenses related to the graduate or undergraduate education of a 
 33.11  mental health professional. 
 33.12     Subd. 2.  [CREATION OF ACCOUNT; LOAN FORGIVENESS 
 33.13  PROGRAM.] A rural mental health professional education account 
 33.14  is established in the general fund.  The commissioner of health 
 33.15  shall use money from the account to establish a loan forgiveness 
 33.16  program for mental health professionals who agree to practice in 
 33.17  designated rural areas. 
 33.18     Subd. 3.  [ELIGIBILITY.] To be eligible to participate in 
 33.19  the loan forgiveness program, a mental health professional 
 33.20  student must submit an application to the commissioner of health 
 33.21  while attending a program of study designed to prepare the 
 33.22  individual to become a mental health professional.  For fiscal 
 33.23  year 2002, applicants may have graduated from a mental health 
 33.24  professional educational program in calendar year 2001.  A 
 33.25  mental health professional student who is accepted into the loan 
 33.26  forgiveness program must sign a contract to agree to serve a 
 33.27  minimum three-year service obligation within a designated rural 
 33.28  area, which shall begin no later than March 31 of the first year 
 33.29  following completion of a mental health professional educational 
 33.30  program.  
 33.31     Subd. 4.  [LOAN FORGIVENESS.] The commissioner of health 
 33.32  may accept up to 12 applicants per year for participation in the 
 33.33  loan forgiveness program.  Applicants are responsible for 
 33.34  securing their own loans.  The commissioner shall select 
 33.35  participants based on their suitability for rural practice, as 
 33.36  indicated by rural experience or training.  The commissioner 
 34.1   shall give preference to applicants who have attended a 
 34.2   Minnesota mental health professional educational institution and 
 34.3   to applicants closest to completing their training.  For each 
 34.4   year that a participant serves as a mental health professional 
 34.5   in a designated rural area as required under subdivision 3, up 
 34.6   to a maximum of four years, the commissioner shall make annual 
 34.7   disbursements directly to the participant equivalent to $4,000 
 34.8   per year of service, not to exceed $16,000 or the balance of the 
 34.9   qualifying educational loans, whichever is less.  Before 
 34.10  receiving loan repayment disbursements and as requested, the 
 34.11  participant must complete and return to the commissioner an 
 34.12  affidavit of practice form provided by the commissioner 
 34.13  verifying that the participant is practicing as required in an 
 34.14  eligible area.  The participant must provide the commissioner 
 34.15  with verification that the full amount of loan repayment 
 34.16  disbursement received by the participant has been applied toward 
 34.17  the qualifying educational loans.  After each disbursement, 
 34.18  verification must be received by the commissioner and approved 
 34.19  before the next loan repayment disbursement is made.  
 34.20  Participants who move their practice from one designated rural 
 34.21  area to another remain eligible for loan repayment. 
 34.22     Subd. 5.  [PENALTY FOR NONFULFILLMENT.] If a participant 
 34.23  does not fulfill the service commitment under subdivision 3, the 
 34.24  commissioner of health shall collect from the participant 100 
 34.25  percent of any payments made for qualified educational loans and 
 34.26  interest at a rate established according to section 270.75.  The 
 34.27  commissioner shall deposit the money collected in the rural 
 34.28  mental health professional education account established under 
 34.29  subdivision 2. 
 34.30     Subd. 6.  [SUSPENSION OR WAIVER OF OBLIGATION.] Payment or 
 34.31  service obligations cancel in the event of a participant's 
 34.32  death.  The commissioner of health may waive or suspend payment 
 34.33  or service obligations in cases of total and permanent 
 34.34  disability or long-term temporary disability lasting for more 
 34.35  than two years.  The commissioner shall evaluate all other 
 34.36  requests for suspension or waivers on a case-by-case basis and 
 35.1   may grant a waiver of all or part of the money owed as a result 
 35.2   of a nonfulfillment penalty if emergency circumstances prevented 
 35.3   fulfillment of the required service commitment. 
 35.4      Sec. 37.  [144.1504] [RURAL HEALTH CARE TECHNICIANS LOAN 
 35.5   FORGIVENESS.] 
 35.6      Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
 35.7   section, the terms defined in this subdivision have the meanings 
 35.8   given them. 
 35.9      (b) "Clinical laboratory scientist" means a person who 
 35.10  performs and interprets results of medical tests that require 
 35.11  the exercise of independent judgment and responsibility, with 
 35.12  minimal supervision by the director or supervisor, in only those 
 35.13  specialties or subspecialties in which the person is qualified 
 35.14  by education, training, and experience and has demonstrated 
 35.15  ongoing competency by certification or other means.  A clinical 
 35.16  laboratory scientist may also be called a medical technologist. 
 35.17     (c) "Clinical laboratory technician" means any person other 
 35.18  than a medical laboratory director, clinical laboratory 
 35.19  scientist, or trainee who functions under the supervision of a 
 35.20  medical laboratory director or clinical laboratory scientist and 
 35.21  performs diagnostic and analytical laboratory tests in only 
 35.22  those specialties or subspecialties in which the person is 
 35.23  qualified by education, training, and experience and has 
 35.24  demonstrated ongoing competency by certification or other 
 35.25  means.  A clinical laboratory technician may also be called a 
 35.26  medical technician. 
 35.27     (d) "Designated rural area" means: 
 35.28     (1) an area in Minnesota outside the counties of Anoka, 
 35.29  Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, 
 35.30  excluding the cities of Duluth, Mankato, Moorhead, Rochester, 
 35.31  and St. Cloud; or 
 35.32     (2) a municipal corporation, as defined under section 
 35.33  471.634, that is physically located, in whole or in part, in an 
 35.34  area defined as a designated rural area under clause (1). 
 35.35     (e) "Health care technician" means a clinical laboratory 
 35.36  scientist, clinical laboratory technician, radiologic 
 36.1   technologist, dental hygienist, dental assistant, or paramedic. 
 36.2      (f) "Paramedic" means a person certified under chapter 144E 
 36.3   by the emergency medical services regulatory board as an 
 36.4   emergency medical technician-paramedic.  
 36.5      (g) "Qualifying educational loans" means government, 
 36.6   commercial, and foundation loans for actual costs paid for 
 36.7   tuition, reasonable education expenses, and reasonable living 
 36.8   expenses related to the graduate or undergraduate education of a 
 36.9   health care technician. 
 36.10     (h) "Radiologic technologist" means a person, other than a 
 36.11  licensed physician, who has demonstrated competency by 
 36.12  certification, registration, or other means for administering 
 36.13  medical imaging or radiation therapy procedures to other persons 
 36.14  for medical purposes.  Radiologic technologist includes, but is 
 36.15  not limited to, radiographers, radiation therapists, and nuclear 
 36.16  medicine technologists. 
 36.17     Subd. 2.  [CREATION OF ACCOUNT; LOAN FORGIVENESS 
 36.18  PROGRAM.] A rural health care technician education account is 
 36.19  established in the general fund.  The commissioner of health 
 36.20  shall use money from the account to establish a loan forgiveness 
 36.21  program for health care technicians who agree to practice in 
 36.22  designated rural areas. 
 36.23     Subd. 3.  [ELIGIBILITY.] To be eligible to participate in 
 36.24  the loan forgiveness program, a health care technician student 
 36.25  must submit an application to the commissioner of health while 
 36.26  attending a program of study designed to prepare the individual 
 36.27  to become a health care technician.  For fiscal year 2002, 
 36.28  applicants may have graduated from a health care technician 
 36.29  program in calendar year 2001.  A health care technician student 
 36.30  who is accepted into the loan forgiveness program must sign a 
 36.31  contract to agree to serve a minimum one-year service obligation 
 36.32  within a designated rural area, which shall begin no later than 
 36.33  March 31 of the first year following completion of a health care 
 36.34  technician program. 
 36.35     Subd. 4.  [LOAN FORGIVENESS.] The commissioner of health 
 36.36  may accept up to 30 applicants per year for participation in the 
 37.1   loan forgiveness program.  Applicants are responsible for 
 37.2   securing their own loans.  The commissioner shall select 
 37.3   participants based on their suitability for rural practice, as 
 37.4   indicated by rural experience or training.  The commissioner 
 37.5   shall give preference to applicants who have attended a 
 37.6   Minnesota health care technician educational institution and to 
 37.7   applicants closest to completing their training.  For each year 
 37.8   that a participant serves as a health care technician in a 
 37.9   designated rural area as required under subdivision 3, up to a 
 37.10  maximum of two years, the commissioner shall make annual 
 37.11  disbursements directly to the participant equivalent to $2,500 
 37.12  per year of service, not to exceed $5,000 or the balance of the 
 37.13  qualifying educational loans, whichever is less.  Before 
 37.14  receiving loan repayment disbursements and as requested, the 
 37.15  participant must complete and return to the commissioner an 
 37.16  affidavit of practice form provided by the commissioner 
 37.17  verifying that the participant is practicing as required in an 
 37.18  eligible area.  The participant must provide the commissioner 
 37.19  with verification that the full amount of loan repayment 
 37.20  disbursement received by the participant has been applied toward 
 37.21  the qualifying educational loans.  After each disbursement, 
 37.22  verification must be received by the commissioner and approved 
 37.23  before the next loan repayment disbursement is made.  
 37.24  Participants who move their practice from one designated rural 
 37.25  area to another remain eligible for loan repayment. 
 37.26     Subd. 5.  [PENALTY FOR NONFULFILLMENT.] If a participant 
 37.27  does not fulfill the service commitment under subdivision 3, the 
 37.28  commissioner of health shall collect from the participant 100 
 37.29  percent of any payments made for qualified educational loans and 
 37.30  interest at a rate established according to section 270.75.  The 
 37.31  commissioner shall deposit the money collected in the rural 
 37.32  health care technician education account established under 
 37.33  subdivision 2. 
 37.34     Subd. 6.  [SUSPENSION OR WAIVER OF OBLIGATION.] Payment or 
 37.35  service obligations cancel in the event of a participant's 
 37.36  death.  The commissioner of health may waive or suspend payment 
 38.1   or service obligations in cases of total and permanent 
 38.2   disability or long-term temporary disability lasting for more 
 38.3   than two years.  The commissioner shall evaluate all other 
 38.4   requests for suspension or waivers on a case-by-case basis and 
 38.5   may grant a waiver of all or part of the money owed as a result 
 38.6   of a nonfulfillment penalty if emergency circumstances prevented 
 38.7   fulfillment of the required service commitment. 
 38.8      Sec. 38.  Minnesota Statutes 2000, section 144.226, 
 38.9   subdivision 4, is amended to read: 
 38.10     Subd. 4.  [VITAL RECORDS SURCHARGE.] In addition to any fee 
 38.11  prescribed under subdivision 1, there is a nonrefundable 
 38.12  surcharge of $3 $2 for each certified and noncertified birth or 
 38.13  death record, and for a certification that the record cannot be 
 38.14  found.  The local or state registrar shall forward this amount 
 38.15  to the state treasurer to be deposited into the state government 
 38.16  special revenue fund.  This surcharge shall not be charged under 
 38.17  those circumstances in which no fee for a birth or death record 
 38.18  is permitted under subdivision 1, paragraph (a).  This surcharge 
 38.19  requirement expires June 30, 2002. 
 38.20     Sec. 39.  [144.3805] [HEALTH STANDARDS.] 
 38.21     Subdivision 1.  [CRITERIA.] When establishing or revising 
 38.22  safe drinking water standards, the commissioner of health shall 
 38.23  adopt standards that adequately protect children and adults with 
 38.24  a margin of safety that provides a reasonable certainty of no 
 38.25  harm to child and adult health, by taking into account the risk 
 38.26  of cancer and effects on each of the following health outcomes: 
 38.27     (1) general infant and child development; 
 38.28     (2) development of the brain and nervous system; 
 38.29     (3) respiratory function; 
 38.30     (4) immunologic suppression or hypersensitization; 
 38.31     (5) endocrine (hormonal) function; and 
 38.32     (6) any other important health outcomes identified by the 
 38.33  commissioner.  
 38.34     Subd. 2.  [MARGIN OF SAFETY.] If there is insufficient 
 38.35  information to establish with reasonable certainty, for cancer 
 38.36  or any health outcome under subdivision 1, that child health 
 39.1   will not be harmed, the commissioner shall adopt a specific 
 39.2   margin of safety for that health outcome or risk that shall be 
 39.3   included in the overall margin of safety to protect human health.
 39.4      Sec. 40.  Minnesota Statutes 2000, section 144.396, 
 39.5   subdivision 7, is amended to read: 
 39.6      Subd. 7.  [LOCAL PUBLIC HEALTH PROMOTION AND PROTECTION.] 
 39.7   The commissioner shall distribute the funds available under 
 39.8   section 144.395, subdivision 2, paragraph (c), clause (3) for 
 39.9   the following: 
 39.10     (1) to community health boards for local health promotion 
 39.11  and protection activities for local health initiatives other 
 39.12  than tobacco prevention aimed at high risk health behaviors 
 39.13  among youth.  The commissioner shall distribute these funds to 
 39.14  the community health boards based on demographics and other 
 39.15  need-based factors relating to health; 
 39.16     (2) for activities that improve the health and learning 
 39.17  environment of school-aged children; and 
 39.18     (3) for competitive grants to public-private partnerships 
 39.19  focusing on the state school health issues identified by the 
 39.20  commissioner. 
 39.21     Sec. 41.  Minnesota Statutes 2000, section 144.98, 
 39.22  subdivision 3, is amended to read: 
 39.23     Subd. 3.  [FEES.] (a) An application for certification 
 39.24  under subdivision 1 must be accompanied by the biennial fee 
 39.25  specified in this subdivision.  The fees are for: 
 39.26     (1) nonrefundable base certification fee, $500 $1,200; and 
 39.27     (2) test category certification fees: 
 39.28  Test Category                                  Certification Fee
 39.29  Clean water program bacteriology                      $200 $600
 39.30  Safe drinking water program bacteriology                   $600
 39.31  Clean water program inorganic chemistry, 
 39.32    fewer than four constituents                        $100 $600
 39.33  Safe drinking water program inorganic chemistry, 
 39.34    four or more constituents                           $300 $600
 39.35  Clean water program chemistry metals, 
 39.36    fewer than four constituents                        $200 $800
 40.1   Safe drinking water program chemistry metals, 
 40.2     four or more constituents                           $500 $800
 40.3   Resource conservation and recovery program 
 40.4     chemistry metals                                         $800
 40.5   Clean water program volatile organic compounds      $600 $1,200
 40.6   Safe drinking water program 
 40.7     volatile organic compounds                             $1,200
 40.8   Resource conservation and recovery program 
 40.9     volatile organic compounds                             $1,200
 40.10  Underground storage tank program
 40.11    volatile organic compounds                             $1,200
 40.12  Clean water program other organic compounds         $600 $1,200
 40.13  Safe drinking water program other organic compounds      $1,200
 40.14  Resource conservation and recovery program
 40.15    other organic compounds                                $1,200
 40.16     (b) The total biennial certification fee is the base fee 
 40.17  plus the applicable test category fees.  The biennial 
 40.18  certification fee for a contract laboratory is 1.5 times the 
 40.19  total certification fee. 
 40.20     (c) Laboratories located outside of this state that require 
 40.21  an on-site survey will be assessed an additional $1,200 $2,500 
 40.22  fee. 
 40.23     (d) Fees must be set so that the total fees support the 
 40.24  laboratory certification program.  Direct costs of the 
 40.25  certification service include program administration, 
 40.26  inspections, the agency's general support costs, and attorney 
 40.27  general costs attributable to the fee function. 
 40.28     (e) A change fee shall be assessed if a laboratory requests 
 40.29  additional analytes or methods at any time other than when 
 40.30  applying for or renewing its certification.  The change fee is 
 40.31  equal to the test category certification fee for the analyte.  
 40.32     (f) A variance fee shall be assessed if a laboratory 
 40.33  requests and is granted a variance from a rule adopted under 
 40.34  this section.  The variance fee is $500 per variance. 
 40.35     (g) Refunds or credits shall not be made for analytes or 
 40.36  methods requested but not approved.  
 41.1      (h) Certification of a laboratory shall not be awarded 
 41.2   until all fees are paid. 
 41.3      Sec. 42.  [145.4241] [DEFINITIONS.] 
 41.4      Subdivision 1.  [APPLICABILITY.] As used in sections 
 41.5   145.4241 to 145.4246, the following terms have the meaning given 
 41.6   them. 
 41.7      Subd. 2.  [ABORTION.] "Abortion" includes an act, 
 41.8   procedure, or use of any instrument, medicine, or drug which is 
 41.9   supplied or prescribed for or administered to a woman known to 
 41.10  be pregnant with the intention to terminate the pregnancy with 
 41.11  an intention other than to increase the probability of live 
 41.12  birth, to preserve the life or health of the child after live 
 41.13  birth, or to remove a dead fetus. 
 41.14     Subd. 3.  [ATTEMPT TO PERFORM AN ABORTION.] "Attempt to 
 41.15  perform an abortion" means an act, or an omission of a 
 41.16  statutorily required act, that, under the circumstances as the 
 41.17  actor believes them to be, constitutes a substantial step in a 
 41.18  course of conduct planned to culminate in the performance of an 
 41.19  abortion in Minnesota in violation of sections 145.4241 to 
 41.20  145.4246. 
 41.21     Subd. 4.  [MEDICAL EMERGENCY.] "Medical emergency" means 
 41.22  any condition that, on the basis of the physician's good faith 
 41.23  clinical judgment, complicates the medical condition of a 
 41.24  pregnant female to the extent that: 
 41.25     (1) an immediate abortion of her pregnancy is necessary to 
 41.26  avert her death; or 
 41.27     (2) a 24-hour delay in performing an abortion creates a 
 41.28  serious risk of substantial injury or impairment of a major 
 41.29  bodily function. 
 41.30     Subd. 5.  [PHYSICIAN.] "Physician" means a person licensed 
 41.31  under chapter 147. 
 41.32     Subd. 6.  [PROBABLE GESTATIONAL AGE OF THE FETUS.] 
 41.33  "Probable gestational age of the fetus" means what will, in the 
 41.34  judgment of the physician, with reasonable probability, be the 
 41.35  gestational age of the fetus at the time the abortion is planned 
 41.36  to be performed. 
 42.1      Sec. 43.  [145.4242] [INFORMED CONSENT.] 
 42.2      (a) No abortion shall be performed in this state except 
 42.3   with the voluntary and informed consent of the female upon whom 
 42.4   the abortion is to be performed.  Except in the case of a 
 42.5   medical emergency, consent to an abortion is voluntary and 
 42.6   informed only if the female is told the following, by telephone 
 42.7   or in person, by the physician who is to perform the abortion, 
 42.8   the referring physician, a registered nurse, or a licensed 
 42.9   practical nurse, at least 24 hours prior to the abortion: 
 42.10     (1) the particular medical risks associated with the 
 42.11  particular abortion procedure to be employed including, when 
 42.12  medically accurate, the risks of infection, hemorrhage, breast 
 42.13  cancer, danger to subsequent pregnancies, and infertility; 
 42.14     (2) the probable gestational age of the fetus at the time 
 42.15  the abortion is to be performed; 
 42.16     (3) the medical risks associated with carrying to term; 
 42.17     (4) that medical assistance benefits may be available for 
 42.18  prenatal care, childbirth, and neonatal care; 
 42.19     (5) that the father is liable to assist in the support of 
 42.20  her child except under certain circumstances, even in instances 
 42.21  when the father has offered to pay for the abortion; 
 42.22     (6) the availability of a toll-free number and Web site 
 42.23  that can provide information on support services during 
 42.24  pregnancy and while the child is dependent and offer 
 42.25  alternatives to abortion; and 
 42.26     (7) that she has the right to review the printed materials 
 42.27  described in section 145.4243, and the printed materials are 
 42.28  available on the state Web site.  
 42.29     (b) The physician or the physician's agent shall orally 
 42.30  inform the female that the materials have been provided by the 
 42.31  state of Minnesota and that they describe the unborn child and 
 42.32  list agencies that offer alternatives to abortion. 
 42.33     (c) The physician or the physician's agent shall orally 
 42.34  inform the female of the Web site address and toll-free number. 
 42.35     (d) If the female chooses to view the materials, they shall 
 42.36  either be given to her at least 24 hours before the abortion or 
 43.1   mailed to her at least 72 hours before the abortion by first 
 43.2   class mail, or at the woman's request, by certified mail, 
 43.3   restricted delivery to addressee, which means the postal 
 43.4   employee may only deliver the mail to the addressee.  The 
 43.5   envelope used by the physician shall not identify the name of 
 43.6   the physician or the physician's clinic or business. 
 43.7      (e) If a physical examination, tests, or the availability 
 43.8   of other information to the physician subsequently indicates, in 
 43.9   the medical judgment of the physician, a revision of the 
 43.10  information previously supplied to the patient, that revised 
 43.11  information may be communicated to the patient at any time prior 
 43.12  to the performance of the abortion. 
 43.13     Sec. 44.  [145.4243] [PRINTED INFORMATION.] 
 43.14     Subdivision 1.  [MATERIALS.] (a) Within 90 days after the 
 43.15  effective date of sections 145.4241 to 145.4246, the department 
 43.16  of health shall cause to be published, in English and in each 
 43.17  language that is the primary language of two percent or more of 
 43.18  the state's population, the printed materials described in 
 43.19  paragraphs (b) and (c) in such a way as to ensure that the 
 43.20  information is easily comprehensible. 
 43.21     (b) The materials must be designed to inform the female of 
 43.22  the probable anatomical and physiological characteristics of the 
 43.23  fetus at two-week gestational increments from the time when a 
 43.24  female can be known to be pregnant to full term, including any 
 43.25  relevant information on the possibility of the fetus' survival 
 43.26  and pictures or drawings representing the development of the 
 43.27  fetus at two-week gestational increments, provided that any such 
 43.28  pictures or drawings must contain the dimensions of the fetus 
 43.29  and must be realistic and appropriate for the stage of pregnancy 
 43.30  depicted.  The materials must be objective, nonjudgmental, and 
 43.31  designed to convey only accurate scientific information about 
 43.32  the fetus at the various gestational ages. 
 43.33     (c) The materials must contain objective information 
 43.34  describing the methods of abortion procedures commonly employed, 
 43.35  the medical risks commonly associated with each procedure, the 
 43.36  possible detrimental psychological effects of abortion, and the 
 44.1   medical risks commonly associated with carrying a child to term. 
 44.2      Subd. 2.  [TYPEFACE; AVAILABILITY.] The materials referred 
 44.3   to in this section must be printed in a typeface large enough to 
 44.4   be clearly legible.  The materials required under this section 
 44.5   must be available from the department of health upon request and 
 44.6   in appropriate number to any person, facility, or hospital at no 
 44.7   cost. 
 44.8      Sec. 45.  [145.4244] [PROCEDURE IN CASE OF MEDICAL 
 44.9   EMERGENCY.] 
 44.10     When a medical emergency compels the performance of an 
 44.11  abortion, the physician shall inform the female, prior to the 
 44.12  abortion if possible, of the medical indications supporting the 
 44.13  physician's judgment that an abortion is necessary to avert her 
 44.14  death or that a 24-hour delay in conformance with section 
 44.15  145.4242 creates a serious risk of substantial injury or 
 44.16  impairment of a major bodily function. 
 44.17     Sec. 46.  [145.4245] [TOLL-FREE TELEPHONE NUMBER AND WEB 
 44.18  SITE.] 
 44.19     Subdivision 1.  [RIGHT TO KNOW.] All pregnant women have 
 44.20  the right to know information about resources available to 
 44.21  assist them and their families.  The commissioner of health 
 44.22  shall establish and maintain a statewide toll-free telephone 
 44.23  number available seven days a week to provide information and 
 44.24  referrals to local community resources to assist women and 
 44.25  families through pregnancy and childbirth and while the child is 
 44.26  dependent. 
 44.27     Subd. 2.  [INFORMATION.] The toll-free telephone number 
 44.28  must provide information regarding community resources on the 
 44.29  following topics: 
 44.30     (1) information regarding avoiding unplanned pregnancies; 
 44.31     (2) prenatal care, including the need for an initial risk 
 44.32  screening and assessment; 
 44.33     (3) adoption; 
 44.34     (4) health education, including the importance of good 
 44.35  nutrition during pregnancy and the risks associated with alcohol 
 44.36  and tobacco use during pregnancy; 
 45.1      (5) available social services, including medical assistance 
 45.2   benefits for prenatal care, childbirth, and neonatal care; 
 45.3      (6) legal assistance in obtaining child support; and 
 45.4      (7) community support services and other resources to 
 45.5   enhance family strengths and reduce the possibility of family 
 45.6   violence. 
 45.7      Subd. 3.  [WEB SITE.] The commissioner shall design and 
 45.8   maintain a secure Web site to provide the information described 
 45.9   under subdivision 2 and section 145.4243 with a minimum 
 45.10  resolution of 72 PPI.  The Web site shall provide the toll-free 
 45.11  information and referral telephone number described under 
 45.12  subdivision 2. 
 45.13     Sec. 47.  [145.4246] [ENFORCEMENT PENALTIES.] 
 45.14     Subdivision 1.  [STANDING.] A person with standing may 
 45.15  maintain an action against the performance or attempted 
 45.16  performance of abortions in violation of section 145.4242.  
 45.17  Those with standing are: 
 45.18     (1) a woman upon whom an abortion in violation of section 
 45.19  145.4242 has been performed or attempted to be performed; and 
 45.20     (2) the parent of an unemancipated minor upon whom an 
 45.21  abortion in violation of section 145.4242 has been, is about to 
 45.22  be, or was attempted to be performed; and 
 45.23     (3) attorney general of the state of Minnesota. 
 45.24     Subd. 2.  [INJUNCTIONS.] Parties bringing actions against 
 45.25  the performance or attempted performance of abortions in 
 45.26  violation of section 145.4242 may seek temporary restraining 
 45.27  orders, preliminary injunctions, and injunctions related only to 
 45.28  the physician or facility where the violation occurred in 
 45.29  accordance with the Rules of Civil Procedure.  Persons with 
 45.30  standing must bring any actions within six months of the date of 
 45.31  the performed or attempted performance of abortions in violation 
 45.32  of section 145.4242.  
 45.33     Subd. 3.  [CONTEMPT.] Any person knowingly violating the 
 45.34  terms of an injunction against the performance or attempted 
 45.35  performance of abortions in violation of section 145.4242 is 
 45.36  subject to civil contempt, and shall be fined no more than 
 46.1   $1,000 for the first violation, no more than $5,000 for the 
 46.2   second violation, no more than $10,000 for the third violation, 
 46.3   and for each successive violation an amount sufficient to deter 
 46.4   future violations.  The fine shall be the exclusive penalty for 
 46.5   a violation.  Each performance or attempted performance of 
 46.6   abortion in violation of section 145.4242 is a separate 
 46.7   violation.  No fine shall be assessed against the woman on whom 
 46.8   an abortion is performed or attempted. 
 46.9      Subd. 4.  [REALLOCATION OF THE FINE.] Any fines collected 
 46.10  under this section must be sent to a special account at the 
 46.11  Minnesota department of health to be used for materials cited in 
 46.12  section 145.4243. 
 46.13     Sec. 48.  [145.4247] [CUMULATIVE RIGHTS.] 
 46.14     The provisions of sections 145.4241 to 145.4246 are 
 46.15  cumulative with existing law regarding an individual's right to 
 46.16  consent to medical treatment and shall not impair any existing 
 46.17  right any patient may have under the common law or statutes of 
 46.18  this state. 
 46.19     Sec. 49.  [145.56] [SUICIDE PREVENTION.] 
 46.20     Subdivision 1.  [SUICIDE PREVENTION PLAN.] The commissioner 
 46.21  of health shall refine, coordinate, and implement the state's 
 46.22  suicide prevention plan using an evidence-based, public health 
 46.23  approach focused on prevention, in collaboration with the 
 46.24  commissioner of human services; the commissioner of public 
 46.25  safety; the commissioner of children, families, and learning; 
 46.26  and appropriate agencies, organizations, and institutions in the 
 46.27  community.  
 46.28     Subd. 2.  [COMMUNITY-BASED PROGRAMS.] (a) The commissioner 
 46.29  shall establish a grant program to fund: 
 46.30     (1) community-based programs to provide education, 
 46.31  outreach, and advocacy services to populations who may be at 
 46.32  risk for suicide; 
 46.33     (2) community-based programs that educate community helpers 
 46.34  and gatekeepers, such as family members, spiritual leaders, 
 46.35  coaches, and business owners, employers, and coworkers on how to 
 46.36  prevent suicide by encouraging help-seeking behaviors; 
 47.1      (3) community-based programs that educate populations at 
 47.2   risk for suicide and community helpers and gatekeepers that must 
 47.3   include information on the symptoms of depression and other 
 47.4   psychiatric illnesses, the warning signs of suicide, skills for 
 47.5   preventing suicides, and making or seeking effective referrals 
 47.6   to intervention and community resources; and 
 47.7      (4) community-based programs to provide evidence-based 
 47.8   suicide prevention and intervention education to school staff, 
 47.9   parents, and students in grades kindergarten through 12.  
 47.10     Subd. 3.  [WORKPLACE AND PROFESSIONAL EDUCATION.] (a) The 
 47.11  commissioner shall promote the use of employee assistance and 
 47.12  workplace programs to support employees with depression and 
 47.13  other psychiatric illnesses and substance abuse disorders, and 
 47.14  refer them to services.  The commissioner shall collaborate with 
 47.15  employer and professional associations, unions, and safety 
 47.16  councils.  
 47.17     (b) The commissioner shall provide training and technical 
 47.18  assistance to local public health and other community-based 
 47.19  professionals to provide for integrated implementation of best 
 47.20  practices for preventing suicide.  
 47.21     Subd. 4.  [COLLECTION AND REPORTING SUICIDE DATA.] The 
 47.22  commissioner shall coordinate with federal, regional, local, and 
 47.23  other state agencies to collect, analyze, and annually issue a 
 47.24  public report on Minnesota-specific data on suicide and suicidal 
 47.25  behaviors.  
 47.26     Subd. 5.  [PERIODIC EVALUATIONS; BIENNIAL REPORTS.] The 
 47.27  commissioner shall conduct periodic evaluations of the impact of 
 47.28  and outcomes from implementation of the state's suicide 
 47.29  prevention plan and each of the activities specified in this 
 47.30  section.  Beginning July 1, 2004, and July 1 of each 
 47.31  even-numbered year thereafter, the commissioner shall report the 
 47.32  results of these evaluations to the chairs of the policy and 
 47.33  finance committees in the house and senate with jurisdiction 
 47.34  over health and human services issues.  
 47.35     Sec. 50.  Minnesota Statutes 2000, section 145.881, 
 47.36  subdivision 2, is amended to read: 
 48.1      Subd. 2.  [DUTIES.] The advisory task force shall meet on a 
 48.2   regular basis to perform the following duties:  
 48.3      (a) review and report on the health care needs of mothers 
 48.4   and children throughout the state of Minnesota; 
 48.5      (b) review and report on the type, frequency and impact of 
 48.6   maternal and child health care services provided to mothers and 
 48.7   children under existing maternal and child health care programs, 
 48.8   including programs administered by the commissioner of health; 
 48.9      (c) establish, review, and report to the commissioner a 
 48.10  list of program guidelines and criteria which the advisory task 
 48.11  force considers essential to providing an effective maternal and 
 48.12  child health care program to low income populations and high 
 48.13  risk persons and fulfilling the purposes defined in section 
 48.14  145.88; 
 48.15     (d) review staff recommendations of the department of 
 48.16  health regarding maternal and child health grant awards before 
 48.17  the awards are made; 
 48.18     (e) make recommendations to the commissioner for the use of 
 48.19  other federal and state funds available to meet maternal and 
 48.20  child health needs; 
 48.21     (f) make recommendations to the commissioner of health on 
 48.22  priorities for funding the following maternal and child health 
 48.23  services:  (1) prenatal, delivery and postpartum care, (2) 
 48.24  comprehensive health care for children, especially from birth 
 48.25  through five years of age, (3) adolescent health services, (4) 
 48.26  family planning services, (5) preventive dental care, (6) 
 48.27  special services for chronically ill and handicapped children 
 48.28  and (7) any other services which promote the health of mothers 
 48.29  and children; and 
 48.30     (g) make recommendations to the commissioner of health on 
 48.31  the process to distribute, award and administer the maternal and 
 48.32  child health block grant funds; and 
 48.33     (h) review the measures that are used to define the 
 48.34  variables of the funding distribution formula in section 
 48.35  145.882, subdivision 4a, every two years and make 
 48.36  recommendations to the commissioner of health for changes based 
 49.1   upon principles established by the advisory task force for this 
 49.2   purpose.  
 49.3      Sec. 51.  Minnesota Statutes 2000, section 145.882, is 
 49.4   amended by adding a subdivision to read: 
 49.5      Subd. 4a.  [ALLOCATION TO COMMUNITY HEALTH BOARDS.] (a) 
 49.6   Federal maternal and child health block grant money remaining 
 49.7   after distributions made under subdivision 2 and money 
 49.8   appropriated for allocation to community health boards must be 
 49.9   allocated according to paragraphs (b) to (d) to community health 
 49.10  boards as defined in section 145A.02, subdivision 5.  
 49.11     (b) All community health boards must receive 95 percent of 
 49.12  the funding awarded to them for the 1998-1999 funding cycle.  If 
 49.13  the amount of state and federal funding available is less than 
 49.14  95 percent of the amount awarded to community health boards for 
 49.15  the 1998-1999 funding cycle, the available funding must be 
 49.16  apportioned to reflect a proportional decrease for each 
 49.17  recipient.  
 49.18     (c) The federal and state funding remaining after 
 49.19  distributions made under paragraph (b) must be allocated to each 
 49.20  community health board based on the following three variables: 
 49.21     (1) 25 percent based on the maternal and child population 
 49.22  in the area served by the community health board; 
 49.23     (2) 50 percent based on the following factors as determined 
 49.24  by averaging the data available for the three most current years:
 49.25     (i) the proportion of infants in the area served by the 
 49.26  community health board whose weight at birth is less than 2,500 
 49.27  grams; 
 49.28     (ii) the proportion of mothers in the area served by the 
 49.29  community health board who received inadequate or no prenatal 
 49.30  care; 
 49.31     (iii) the proportion of births in the area served by the 
 49.32  community health board to women under age 19; and 
 49.33     (iv) the proportion of births in the area served by the 
 49.34  community health board to American Indians and women of color; 
 49.35  and 
 49.36     (3) 25 percent based on the income of the maternal and 
 50.1   child population in the area served by the community health 
 50.2   board. 
 50.3      (d) Each variable must be expressed as a city or county 
 50.4   score consisting of the city or county frequency of each 
 50.5   variable divided by the statewide frequency of the variable.  A 
 50.6   total score for each city or county jurisdiction must be 
 50.7   computed by totaling the scores of the three variables.  Each 
 50.8   community health board must be allocated an amount equal to the 
 50.9   total score obtained for the city, county, or counties in its 
 50.10  area multiplied by the amount of money available. 
 50.11     Sec. 52.  Minnesota Statutes 2000, section 145.882, 
 50.12  subdivision 7, is amended to read: 
 50.13     Subd. 7.  [USE OF BLOCK GRANT MONEY.] (a) Maternal and 
 50.14  child health block grant money allocated to a community health 
 50.15  board or community health services area under this section must 
 50.16  be used for qualified programs for high risk and low-income 
 50.17  individuals.  Block grant money must be used for programs that: 
 50.18     (1) specifically address the highest risk populations, 
 50.19  particularly low-income and minority groups with a high rate of 
 50.20  infant mortality and children with low birth weight, by 
 50.21  providing services, including prepregnancy family planning 
 50.22  services, calculated to produce measurable decreases in infant 
 50.23  mortality rates, instances of children with low birth weight, 
 50.24  and medical complications associated with pregnancy and 
 50.25  childbirth, including infant mortality, low birth rates, and 
 50.26  medical complications arising from chemical abuse by a mother 
 50.27  during pregnancy; 
 50.28     (2) specifically target pregnant women whose age, medical 
 50.29  condition, maternal history, or chemical abuse substantially 
 50.30  increases the likelihood of complications associated with 
 50.31  pregnancy and childbirth or the birth of a child with an 
 50.32  illness, disability, or special medical needs; 
 50.33     (3) specifically address the health needs of young children 
 50.34  who have or are likely to have a chronic disease or disability 
 50.35  or special medical needs, including physical, neurological, 
 50.36  emotional, and developmental problems that arise from chemical 
 51.1   abuse by a mother during pregnancy; 
 51.2      (4) provide family planning and preventive medical care for 
 51.3   specifically identified target populations, such as minority and 
 51.4   low-income teenagers, in a manner calculated to decrease the 
 51.5   occurrence of inappropriate pregnancy and minimize the risk of 
 51.6   complications associated with pregnancy and childbirth; or 
 51.7      (5) specifically address the frequency and severity of 
 51.8   childhood injuries and other child and adolescent health 
 51.9   problems in high risk target populations by providing services 
 51.10  calculated to produce measurable decreases in mortality and 
 51.11  morbidity.  However, money may be used for this purpose only if 
 51.12  the community health board's application includes program 
 51.13  components for the purposes in clauses (1) to (4) in the 
 51.14  proposed geographic service area and the total expenditure for 
 51.15  injury-related programs under this clause does not exceed ten 
 51.16  percent of the total allocation under subdivision 3. 
 51.17     (b) Maternal and child health block grant money may be used 
 51.18  for purposes other than the purposes listed in this subdivision 
 51.19  only under the following conditions:  
 51.20     (1) the community health board or community health services 
 51.21  area can demonstrate that existing programs fully address the 
 51.22  needs of the highest risk target populations described in this 
 51.23  subdivision; or 
 51.24     (2) the money is used to continue projects that received 
 51.25  funding before creation of the maternal and child health block 
 51.26  grant in 1981. 
 51.27     (c) (b) Projects that received funding before creation of 
 51.28  the maternal and child health block grant in 1981, must be 
 51.29  allocated at least the amount of maternal and child health 
 51.30  special project grant funds received in 1989, unless (1) the 
 51.31  local board of health provides equivalent alternative funding 
 51.32  for the project from another source; or (2) the local board of 
 51.33  health demonstrates that the need for the specific services 
 51.34  provided by the project has significantly decreased as a result 
 51.35  of changes in the demographic characteristics of the population, 
 51.36  or other factors that have a major impact on the demand for 
 52.1   services.  If the amount of federal funding to the state for the 
 52.2   maternal and child health block grant is decreased, these 
 52.3   projects must receive a proportional decrease as required in 
 52.4   subdivision 1.  Increases in allocation amounts to local boards 
 52.5   of health under subdivision 4 may be used to increase funding 
 52.6   levels for these projects may be continued at the discretion of 
 52.7   the community health board. 
 52.8      Sec. 53.  Minnesota Statutes 2000, section 145.885, 
 52.9   subdivision 2, is amended to read: 
 52.10     Subd. 2.  [ADDITIONAL REQUIREMENTS FOR COMMUNITY BOARDS OF 
 52.11  HEALTH.] Applications by community health boards as defined in 
 52.12  section 145A.02, subdivision 5, under section 145.882, 
 52.13  subdivision 3 4a, must also contain a summary of the process 
 52.14  used to develop the local program, including evidence that the 
 52.15  community health board notified local public and private 
 52.16  providers of the availability of funding through the community 
 52.17  health board for maternal and child health services; a list of 
 52.18  all public and private agency requests for grants submitted to 
 52.19  the community health board indicating which requests were 
 52.20  included in the grant application; and an explanation of how 
 52.21  priorities were established for selecting the requests to be 
 52.22  included in the grant application.  The community health board 
 52.23  shall include, with the grant application, a written statement 
 52.24  of the criteria to be applied to public and private agency 
 52.25  requests for funding. 
 52.26     Sec. 54.  Minnesota Statutes 2000, section 145.925, 
 52.27  subdivision 1, is amended to read: 
 52.28     Subdivision 1.  [ELIGIBLE ORGANIZATIONS; PURPOSE.] The 
 52.29  commissioner of health may make special grants to cities, 
 52.30  counties, groups of cities or counties, or nonprofit 
 52.31  corporations to provide prepregnancy family planning 
 52.32  services.  No funds received under this section shall be used to 
 52.33  provide abortion services. 
 52.34     Sec. 55.  [145.9263] [PROMOTING HEALTHY LIFESTYLES AMONG 
 52.35  YOUTH.] 
 52.36     Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
 53.1   establish a grant program to promote healthy behavior among 
 53.2   youth. 
 53.3      Subd. 2.  [LOCAL GRANTS.] The commissioner shall award 
 53.4   competitive grants to eligible applicants for projects and 
 53.5   initiatives directed at promoting healthy lifestyles such as 
 53.6   proper nutrition, the need for physical exercise, and the 
 53.7   avoidance of other unhealthy behaviors.  The project areas for 
 53.8   grants include; 
 53.9      (1) after-school programs that focus on leadership, youth 
 53.10  mentoring and peer counseling, academic support, and 
 53.11  after-school enrichment; 
 53.12     (2) programs that provide education and support for youth 
 53.13  and parents that support healthy behaviors and self-sufficiency; 
 53.14     (3) youth development programs; or 
 53.15     (4) programs that focus on ethnic or cultural enrichment.  
 53.16     Subd. 3.  [HIGH-RISK COMMUNITY YOUTH GRANTS.] (a) the 
 53.17  commissioner shall award grants to communities that have 
 53.18  significant risk factors for unhealthy youth behaviors and that 
 53.19  currently have in place youth development programs. 
 53.20     (b) To be eligible for a grant under this subdivision, an 
 53.21  applicant must be a tribal government or a community health 
 53.22  board as defined in section 145A.02.  Applicants must submit 
 53.23  proposals to the commissioner.  A proposal must specify the 
 53.24  strategies to be implemented.  Strategies may include youth 
 53.25  mentoring programs, academic support programs, and parent 
 53.26  support and education programs.  Applicants must demonstrate 
 53.27  that a proposed project: 
 53.28     (1) is research-based or based on proven effective 
 53.29  strategies; 
 53.30     (2) is designed to coordinate with related youth risk 
 53.31  behavior reduction activities; 
 53.32     (3) involves youth and parents in the project's development 
 53.33  and implementation; 
 53.34     (4) reflects racially and ethnically appropriate 
 53.35  approaches; and 
 53.36     (5) will be implemented through or with persons or 
 54.1   community-based organizations that reflect the race or ethnicity 
 54.2   of the population to be reached. 
 54.3      Subd. 4.  [PUBLIC AWARENESS.] The commissioner shall 
 54.4   coordinate a public/private partnership to provide a statewide 
 54.5   outreach campaign directed at youth on the importance of a 
 54.6   healthy lifestyle and the health consequences of poor nutrition 
 54.7   and the lack of physical exercise in terms of obesity and other 
 54.8   health problems.  The campaign shall include culturally specific 
 54.9   and community-based messages.  
 54.10     Subd. 5.  [PROCESS.] (a) The commissioner, in consultation 
 54.11  with community partners, shall develop the criteria and 
 54.12  procedures to allocate the grants under this section.  In 
 54.13  developing the criteria, the commissioner shall establish an 
 54.14  administrative cost limit for grant recipients.  The outcomes 
 54.15  established under subdivision 6 must be specified to the grant 
 54.16  recipients receiving grants under this section at the time the 
 54.17  grant is awarded.  The commissioner may require an applicant to 
 54.18  enter into a collaborative agreement with the local public 
 54.19  health entity.  
 54.20     (b) Eligible applicants may include, but are not limited 
 54.21  to, nonprofit organizations, community clinics, and social 
 54.22  service organizations.  Applicants must submit proposals to the 
 54.23  commissioner.  The proposals must specify the strategies to be 
 54.24  implemented and must take into account the need for a 
 54.25  coordinated local effort.  
 54.26     (c) The commissioner shall give priority to programs that: 
 54.27     (1) are designed to coordinate with related youth risk 
 54.28  behavior reduction activities; 
 54.29     (2) involve youth and parents in the development and 
 54.30  implementation; 
 54.31     (3) are implemented through or with community-based 
 54.32  organizations reflecting the race and ethnicity of the 
 54.33  population to be needed; and 
 54.34     (4) reflect racial and ethnic appropriate approaches.  
 54.35     Subd. 6.  [MEASURABLE OUTCOMES.] The commissioner, in 
 54.36  consultation with other public and private nonprofit 
 55.1   organizations interested in youth development efforts, shall 
 55.2   establish measurable outcomes to determine the effectiveness of 
 55.3   the grants receiving funds under this section.  
 55.4      Subd. 7.  [COORDINATION.] The commissioner shall coordinate 
 55.5   the projects and initiatives funded under this section with 
 55.6   other efforts at the local, state, and national level to avoid 
 55.7   duplication and promote complimentary efforts.  
 55.8      Subd. 8.  [EVALUATION.] (a) Using the outcome measures 
 55.9   established in subdivision 6, the commissioner shall conduct a 
 55.10  biennial evaluation of the efforts funded under this section.  
 55.11     (b) Grant recipients shall cooperate with the commissioner 
 55.12  of health in the evaluation and provide the commissioner with 
 55.13  the information necessary to conduct the evaluation.  
 55.14     Subd. 9.  [REPORT.] The commissioner shall submit biennial 
 55.15  reports to the legislature on the activities of the projects 
 55.16  funded under this section and the results of the biennial 
 55.17  evaluation.  These reports are due by January 15 of every other 
 55.18  year, beginning in the year 2004. 
 55.19     Sec. 56.  [145.9268] [COMMUNITY CLINIC GRANTS.] 
 55.20     Subdivision 1.  [DEFINITION.] For purposes of this section, 
 55.21  "eligible community clinic" means: 
 55.22     (1) a clinic that provides services under conditions as 
 55.23  defined in Minnesota Rules, part 9505.0255, and utilizes a 
 55.24  sliding fee scale to determine eligibility for charity care; 
 55.25     (2) an Indian tribal government or Indian health service 
 55.26  unit; or 
 55.27     (3) a consortium of clinics comprised of entities under 
 55.28  clause (1) or (2). 
 55.29     Subd. 2.  [GRANTS AUTHORIZED.] The commissioner of health 
 55.30  shall award grants to eligible community clinics to improve the 
 55.31  ongoing viability of Minnesota's clinic-based safety net 
 55.32  providers.  Grants shall be awarded to support the capacity of 
 55.33  eligible community clinics to serve low-income populations, 
 55.34  reduce current or future uncompensated care burdens, or provide 
 55.35  for improved care delivery infrastructure. 
 55.36     Subd. 3.  [ALLOCATION OF GRANTS.] (a) To receive a grant 
 56.1   under this section, an eligible community clinic must submit an 
 56.2   application to the commissioner of health by the deadline 
 56.3   established by the commissioner.  A grant may be awarded upon 
 56.4   the signing of a grant contract. 
 56.5      (b) An application must be on a form and contain 
 56.6   information as specified by the commissioner but at a minimum 
 56.7   must contain: 
 56.8      (1) a description of the project for which grant funds will 
 56.9   be used; 
 56.10     (2) a description of the problem the proposed project will 
 56.11  address; and 
 56.12     (3) a description of achievable objectives, a workplan, and 
 56.13  a timeline for project completion. 
 56.14     (c) The commissioner shall review each application to 
 56.15  determine whether the application is complete and whether the 
 56.16  applicant and the project are eligible for a grant.  In 
 56.17  evaluating applications according to paragraph (e), the 
 56.18  commissioner shall establish criteria including, but not limited 
 56.19  to:  the priority level of the project; the applicant's 
 56.20  thoroughness and clarity in describing the problem; a 
 56.21  description of the applicant's proposed project; the manner in 
 56.22  which the applicant will demonstrate the effectiveness of the 
 56.23  project; and evidence of efficiencies and effectiveness gained 
 56.24  through collaborative efforts.  The commissioner may also take 
 56.25  into account other relevant factors, including, but not limited 
 56.26  to, the percentage for which uninsured patients represent the 
 56.27  applicant's patient base.  During application review, the 
 56.28  commissioner may request additional information about a proposed 
 56.29  project, including information on project cost.  Failure to 
 56.30  provide the information requested disqualifies an applicant.  
 56.31  The commissioner has discretion over the number of grants 
 56.32  awarded. 
 56.33     (d) In determining which eligible community clinics will 
 56.34  receive grants under this section, the commissioner shall give 
 56.35  preference to those grant applications that show evidence of 
 56.36  collaboration with other eligible community clinics, hospitals, 
 57.1   health care providers, or community organizations.  In addition, 
 57.2   the commissioner shall give priority, in declining order, to 
 57.3   grant applications for projects that: 
 57.4      (1) establish, update, or improve information, data 
 57.5   collection, or billing systems; 
 57.6      (2) procure, modernize, remodel, or replace equipment used 
 57.7   an the delivery of direct patient care at a clinic; 
 57.8      (3) provide improvements for care delivery, such as 
 57.9   increased translation and interpretation services; 
 57.10     (4) provide a direct offset to expenses incurred for 
 57.11  charity care services; or 
 57.12     (5) other projects determined by the commissioner to 
 57.13  improve the ability of applicants to provide care to the 
 57.14  vulnerable populations they serve. 
 57.15     Subd. 4.  [EVALUATION.] The commissioner of health shall 
 57.16  evaluate the overall effectiveness of the grant program.  The 
 57.17  commissioner shall collect progress reports to evaluate the 
 57.18  grant program from the eligible community clinics receiving 
 57.19  grants. 
 57.20     Sec. 57.  [145.9269] [ELIMINATING HEALTH DISPARITIES.] 
 57.21     Subdivision 1.  [STATE-COMMUNITY PARTNERSHIPS.] The 
 57.22  commissioner, in partnership with culturally based community 
 57.23  organizations; the Indian affairs council as defined in section 
 57.24  3.922; the council on affairs of Chicano/Latino people as 
 57.25  defined in section 3.9223; the council on Black Minnesotans as 
 57.26  defined in section 3.9225; the council on Asian-Pacific 
 57.27  Minnesotans as defined in section 3.9226; community health 
 57.28  boards; and tribal governments, shall develop and implement a 
 57.29  comprehensive coordinated plan to reduce health disparities 
 57.30  experienced by American Indians and communities of color in 
 57.31  infant mortality, breast and cervical cancer screening, 
 57.32  HIV/AIDS/STDs, immunizations, cardiovascular disease, diabetes, 
 57.33  injury, and violence.  
 57.34     Subd. 2.  [MEASURABLE OUTCOMES.] The commissioner, in 
 57.35  consultation with community partners, shall establish measurable 
 57.36  outcomes to determine the effectiveness of the grants and other 
 58.1   activities receiving funds under this section in reducing health 
 58.2   disparities.  The goal of the grants shall be to decrease by 
 58.3   one-half the ratio of American Indians and communities of color 
 58.4   specific health condition rates to white rates in the areas 
 58.5   identified in subdivision 1.  
 58.6      Subd. 3.  [STATEWIDE ASSESSMENT.] The commissioner shall 
 58.7   enhance current data tools to assure a statewide assessment of 
 58.8   the risk behaviors associated with the areas identified in 
 58.9   subdivision 1.  This statewide assessment must be used to 
 58.10  establish a baseline to measure the effect of activities funded 
 58.11  under this section.  To the extent feasible, the commissioner of 
 58.12  health must conduct the assessment so that the results may be 
 58.13  compared to nationwide data.  Data collected and used for 
 58.14  assessment must not identify an individual according to section 
 58.15  13.05, subdivision 7.  
 58.16     Subd. 4.  [TECHNICAL ASSISTANCE.] The commissioner shall 
 58.17  provide the necessary expertise to community organizations to 
 58.18  ensure that submitted proposals are likely to be successful in 
 58.19  reducing health disparities.  The commissioner shall provide 
 58.20  grant recipients with guidance and training on strategies 
 58.21  related to reducing the health disparities identified in this 
 58.22  section.  The commissioner shall also provide grant recipients 
 58.23  with assistance in the development of evaluation of local 
 58.24  community activities.  
 58.25     Subd. 5.  [PROCESS.] (a) The commissioner shall, in 
 58.26  consultation with community partners, develop the criteria and 
 58.27  procedures to allocate the grants under this section.  In 
 58.28  developing the criteria, the commissioner shall establish an 
 58.29  administrative cost limit for grant recipients.  The outcomes 
 58.30  established under subdivision 2 must be specified to the grant 
 58.31  recipients receiving grants under this section at the time the 
 58.32  grant is awarded.  
 58.33     (b) A grant recipient must coordinate the activities 
 58.34  related to reducing health disparities with other grant 
 58.35  recipients receiving funding under this section within the 
 58.36  recipient's service area.  
 59.1      Subd. 6.  [COMMUNITY GRANT PROGRAM.] (a) The commissioner 
 59.2   shall award grants to eligible applicants for local or regional 
 59.3   projects and initiatives directed at reducing health 
 59.4   disparities.  Grant proposals must address one or more of the 
 59.5   following priority areas:  
 59.6      (1) decreasing racial and ethnic disparities in infant 
 59.7   mortality rates; 
 59.8      (2) decreasing racial and ethnic disparities in morbidity 
 59.9   and mortality rates relating to breast and cervical cancer; 
 59.10     (3) decreasing racial and ethnic disparities in morbidity 
 59.11  and mortality rates relating to HIV/AIDS/STDs; 
 59.12     (4) increasing adult and child immunization rates in racial 
 59.13  and ethnic populations; 
 59.14     (5) decreasing racial and ethnic disparities in morbidity 
 59.15  and mortality rates relating to cardiovascular disease; 
 59.16     (6) decreasing racial and ethnic disparities in morbidity 
 59.17  and mortality rates relating to diabetes; and 
 59.18     (7) decreasing racial and ethnic disparities in morbidity 
 59.19  and mortality rates relating to injury or violence. 
 59.20     (b) The commissioner may award up to 20 percent of the 
 59.21  funds available as planning grants.  Planning grant proposals 
 59.22  must be used to address such areas as community assessment, 
 59.23  determining community priority areas, coordination activities, 
 59.24  and development of community-supported strategies.  
 59.25     (c) Eligible applicants may include, but are not limited 
 59.26  to, faith-based organizations, social service organizations, 
 59.27  community nonprofit organizations, and community clinics.  
 59.28  Applicants must submit proposals to the commissioner and must 
 59.29  demonstrate partnerships with local public health.  The 
 59.30  proposals must specify the strategies to be implemented to 
 59.31  reduce one or more of the project areas listed under subdivision 
 59.32  6, paragraph (a), and must be targeted to achieve the outcomes 
 59.33  established in subdivision 2.  
 59.34     (d) The commissioner must give priority to applicants who 
 59.35  demonstrate that the proposed project or initiative: 
 59.36     (1) is supported by the community the applicant will be 
 60.1   serving; 
 60.2      (2) is research based or based on promising strategies; 
 60.3      (3) is designed to compliment other related community 
 60.4   activities; 
 60.5      (4) utilizes strategies that positively impacts more than 
 60.6   one priority area; and 
 60.7      (5) is implemented through or with community-based 
 60.8   organizations that reflect the race or ethnicity of the 
 60.9   population to be reached.  
 60.10     Subd. 7.  [LOCAL PUBLIC HEALTH.] The commissioner shall 
 60.11  award grants to community health boards for local health 
 60.12  promotion and protection activities aimed at reducing maternal 
 60.13  and child health disparities between whites and American Indians 
 60.14  and populations of color.  Local public health must submit 
 60.15  proposals to the commissioner and must demonstrate partnerships 
 60.16  with culturally based community organizations or with tribal 
 60.17  governments.  The commissioner shall distribute these funds to 
 60.18  community health boards according to the formula in section 
 60.19  145.882, subdivision 4.  
 60.20     Subd. 8.  [TRIBAL GOVERNMENTS.] The commissioner shall 
 60.21  award grants to American Indian tribal governments for 
 60.22  implementation of community interventions to reduce health 
 60.23  disparities for the project areas listed under subdivision 6, 
 60.24  paragraph (a), and must be targeted to achieve the outcomes 
 60.25  established in subdivision 2.  Tribal governments must submit 
 60.26  proposals to the commissioner and must demonstrate partnerships 
 60.27  with local public health.  The distribution formula shall be 
 60.28  determined by the commissioner, in consultation with the tribal 
 60.29  governments.  
 60.30     Subd. 9.  [REFUGEE AND IMMIGRANT HEALTH.] The commissioner 
 60.31  shall distribute funds to community health boards for health 
 60.32  screening and follow-up services for foreign-born persons.  
 60.33  Distribution shall be based on the following criteria: 
 60.34     (1) cases of pulmonary tuberculosis; 
 60.35     (2) cases of extrapulmonary tuberculosis; 
 60.36     (3) the number of months providing directly observed 
 61.1   therapy to cases of uninsured tuberculosis or extrapulmonary 
 61.2   tuberculosis; and 
 61.3      (4) the number of new refugees in the service area within 
 61.4   the fiscal year.  
 61.5   The commissioner, in cooperation with the affected local public 
 61.6   health departments, shall determine reimbursement rates within 
 61.7   the given appropriations. 
 61.8      Subd. 10.  [COORDINATION.] The commissioner shall 
 61.9   coordinate the projects and initiatives funded under this 
 61.10  section with other efforts at the local, state, or national 
 61.11  level to avoid duplication of effort and promote complimentary 
 61.12  efforts.  
 61.13     Subd. 11.  [EVALUATION.] Using the outcome measures 
 61.14  established in subdivision 2, the commissioner shall conduct a 
 61.15  biennial evaluation of the community grants program, community 
 61.16  health board activities, and tribal government activities funded 
 61.17  under this section.  Grant recipients, tribal governments, and 
 61.18  community health boards shall cooperate with the commissioner in 
 61.19  the evaluation and provide the commissioner with the information 
 61.20  necessary to conduct the evaluation.  
 61.21     Subd. 12.  [REPORT.] The commissioner shall submit a 
 61.22  biennial report to the legislature on the local community 
 61.23  projects, tribal government, and community health board 
 61.24  prevention activities funded under this section.  These reports 
 61.25  must include information on grant recipients, activities that 
 61.26  were conducted using grant funds, evaluation data and outcome 
 61.27  measures, if available.  These reports are due by January 15 of 
 61.28  every other year, beginning in the year 2004.  
 61.29     Sec. 58.  Minnesota Statutes 2000, section 157.16, 
 61.30  subdivision 3, is amended to read: 
 61.31     Subd. 3.  [ESTABLISHMENT FEES; DEFINITIONS.] (a) The 
 61.32  following fees are required for food and beverage service 
 61.33  establishments, hotels, motels, lodging establishments, and 
 61.34  resorts licensed under this chapter.  Food and beverage service 
 61.35  establishments must pay the highest applicable fee under 
 61.36  paragraph (e), clause (1), (2), (3), or (4), and establishments 
 62.1   serving alcohol must pay the highest applicable fee under 
 62.2   paragraph (e), clause (6) or (7).  The license fee for new 
 62.3   operators previously licensed under this chapter for the same 
 62.4   calendar year is one-half of the appropriate annual license fee, 
 62.5   plus any penalty that may be required.  The license fee for 
 62.6   operators opening on or after October 1 is one-half of the 
 62.7   appropriate annual license fee, plus any penalty that may be 
 62.8   required. 
 62.9      (b) All food and beverage service establishments, except 
 62.10  special event food stands, and all hotels, motels, lodging 
 62.11  establishments, and resorts shall pay an annual base fee of 
 62.12  $100 $145. 
 62.13     (c) A special event food stand shall pay a flat fee 
 62.14  of $30 $35 annually.  "Special event food stand" means a fee 
 62.15  category where food is prepared or served in conjunction with 
 62.16  celebrations, county fairs, or special events from a special 
 62.17  event food stand as defined in section 157.15. 
 62.18     (d) In addition to the base fee in paragraph (b), each food 
 62.19  and beverage service establishment, other than a special event 
 62.20  food stand, and each hotel, motel, lodging establishment, and 
 62.21  resort shall pay an additional annual fee for each fee category 
 62.22  as specified in this paragraph: 
 62.23     (1) Limited food menu selection, $30 $40.  "Limited food 
 62.24  menu selection" means a fee category that provides one or more 
 62.25  of the following: 
 62.26     (i) prepackaged food that receives heat treatment and is 
 62.27  served in the package; 
 62.28     (ii) frozen pizza that is heated and served; 
 62.29     (iii) a continental breakfast such as rolls, coffee, juice, 
 62.30  milk, and cold cereal; 
 62.31     (iv) soft drinks, coffee, or nonalcoholic beverages; or 
 62.32     (v) cleaning for eating, drinking, or cooking utensils, 
 62.33  when the only food served is prepared off site. 
 62.34     (2) Small establishment, including boarding establishments, 
 62.35  $55 $75.  "Small establishment" means a fee category that has no 
 62.36  salad bar and meets one or more of the following: 
 63.1      (i) possesses food service equipment that consists of no 
 63.2   more than a deep fat fryer, a grill, two hot holding containers, 
 63.3   and one or more microwave ovens; 
 63.4      (ii) serves dipped ice cream or soft serve frozen desserts; 
 63.5      (iii) serves breakfast in an owner-occupied bed and 
 63.6   breakfast establishment; 
 63.7      (iv) is a boarding establishment; or 
 63.8      (v) meets the equipment criteria in clause (3), item (i) or 
 63.9   (ii), and has a maximum patron seating capacity of not more than 
 63.10  50.  
 63.11     (3) Medium establishment, $150 $210.  "Medium establishment"
 63.12  means a fee category that meets one or more of the following: 
 63.13     (i) possesses food service equipment that includes a range, 
 63.14  oven, steam table, salad bar, or salad preparation area; 
 63.15     (ii) possesses food service equipment that includes more 
 63.16  than one deep fat fryer, one grill, or two hot holding 
 63.17  containers; or 
 63.18     (iii) is an establishment where food is prepared at one 
 63.19  location and served at one or more separate locations. 
 63.20     Establishments meeting criteria in clause (2), item (v), 
 63.21  are not included in this fee category.  
 63.22     (4) Large establishment, $250 $350.  "Large establishment" 
 63.23  means either: 
 63.24     (i) a fee category that (A) meets the criteria in clause 
 63.25  (3), items (i) or (ii), for a medium establishment, (B) seats 
 63.26  more than 175 people, and (C) offers the full menu selection an 
 63.27  average of five or more days a week during the weeks of 
 63.28  operation; or 
 63.29     (ii) a fee category that (A) meets the criteria in clause 
 63.30  (3), item (iii), for a medium establishment, and (B) prepares 
 63.31  and serves 500 or more meals per day. 
 63.32     (5) Other food and beverage service, including food carts, 
 63.33  mobile food units, seasonal temporary food stands, and seasonal 
 63.34  permanent food stands, $30 $40. 
 63.35     (6) Beer or wine table service, $30 $40.  "Beer or wine 
 63.36  table service" means a fee category where the only alcoholic 
 64.1   beverage service is beer or wine, served to customers seated at 
 64.2   tables. 
 64.3      (7) Alcoholic beverage service, other than beer or wine 
 64.4   table service, $75 $105. 
 64.5      "Alcohol beverage service, other than beer or wine table 
 64.6   service" means a fee category where alcoholic mixed drinks are 
 64.7   served or where beer or wine are served from a bar. 
 64.8      (8) Lodging per sleeping accommodation unit, $4 $6, 
 64.9   including hotels, motels, lodging establishments, and resorts, 
 64.10  up to a maximum of $400 $600.  "Lodging per sleeping 
 64.11  accommodation unit" means a fee category including the number of 
 64.12  guest rooms, cottages, or other rental units of a hotel, motel, 
 64.13  lodging establishment, or resort; or the number of beds in a 
 64.14  dormitory. 
 64.15     (9) First public swimming pool, $100 $140; each additional 
 64.16  public swimming pool, $50 $80.  "Public swimming pool" means a 
 64.17  fee category that has the meaning given in Minnesota Rules, part 
 64.18  4717.0250, subpart 8. 
 64.19     (10) First spa, $50 $80; each additional spa, $25 $40.  
 64.20  "Spa pool" means a fee category that has the meaning given in 
 64.21  Minnesota Rules, part 4717.0250, subpart 9. 
 64.22     (11) Private sewer or water, $30 $40.  "Individual private 
 64.23  water" means a fee category with a water supply other than a 
 64.24  community public water supply as defined in Minnesota Rules, 
 64.25  chapter 4720.  "Individual private sewer" means a fee category 
 64.26  with an individual sewage treatment system which uses subsurface 
 64.27  treatment and disposal. 
 64.28     (e) A fee is not required for a food and beverage service 
 64.29  establishment operated by a school as defined in sections 
 64.30  120A.05, subdivisions 9, 11, 13, and 17 and 120A.22. 
 64.31     (f) A fee of $150 for review of the construction plans must 
 64.32  accompany the initial license application for food and beverage 
 64.33  service establishments, hotels, motels, lodging establishments, 
 64.34  or resorts. 
 64.35     (g) (f) When existing food and beverage service 
 64.36  establishments, hotels, motels, lodging establishments, or 
 65.1   resorts are extensively remodeled, a fee of $150 must be 
 65.2   submitted with the remodeling plans. 
 65.3      (h) (g) Seasonal temporary food stands and special event 
 65.4   food stands are not required to submit construction or 
 65.5   remodeling plans for review. 
 65.6      Sec. 59.  Minnesota Statutes 2000, section 157.22, is 
 65.7   amended to read: 
 65.8      157.22 [EXEMPTIONS.] 
 65.9      This chapter shall not be construed to apply to: 
 65.10     (1) interstate carriers under the supervision of the United 
 65.11  States Department of Health and Human Services; 
 65.12     (2) any building constructed and primarily used for 
 65.13  religious worship; 
 65.14     (3) any building owned, operated, and used by a college or 
 65.15  university in accordance with health regulations promulgated by 
 65.16  the college or university under chapter 14; 
 65.17     (4) any person, firm, or corporation whose principal mode 
 65.18  of business is licensed under sections 28A.04 and 28A.05, is 
 65.19  exempt at that premises from licensure as a food or beverage 
 65.20  establishment; provided that the holding of any license pursuant 
 65.21  to sections 28A.04 and 28A.05 shall not exempt any person, firm, 
 65.22  or corporation from the applicable provisions of this chapter or 
 65.23  the rules of the state commissioner of health relating to food 
 65.24  and beverage service establishments; 
 65.25     (5) family day care homes and group family day care homes 
 65.26  governed by sections 245A.01 to 245A.16; 
 65.27     (6) nonprofit senior citizen centers for the sale of 
 65.28  home-baked goods; and 
 65.29     (7) food not prepared at an establishment and brought in by 
 65.30  individuals attending a potluck event for consumption at the 
 65.31  potluck event.  An organization sponsoring a potluck event under 
 65.32  this clause may advertise the potluck event to the public 
 65.33  through any means.  Individuals who are not members of an 
 65.34  organization sponsoring a potluck event under this clause may 
 65.35  attend the potluck event and consume the food at the event.  
 65.36  Licensed food establishments cannot be sponsors of potluck 
 66.1   events.  Potluck event food shall not be brought into a licensed 
 66.2   food establishment kitchen; and 
 66.3      (8) a home school in which a child is provided instruction 
 66.4   at home.  
 66.5      Sec. 60.  Minnesota Statutes 2000, section 326.38, is 
 66.6   amended to read: 
 66.7      326.38 [LOCAL REGULATIONS.] 
 66.8      Any city having a system of waterworks or sewerage, or any 
 66.9   town in which reside over 5,000 people exclusive of any 
 66.10  statutory cities located therein, or the metropolitan airports 
 66.11  commission, may, by ordinance, adopt local regulations providing 
 66.12  for plumbing permits, bonds, approval of plans, and inspections 
 66.13  of plumbing, which regulations are not in conflict with the 
 66.14  plumbing standards on the same subject prescribed by the state 
 66.15  commissioner of health.  No city or such town shall prohibit 
 66.16  plumbers licensed by the state commissioner of health from 
 66.17  engaging in or working at the business, except cities and 
 66.18  statutory cities which, prior to April 21, 1933, by ordinance 
 66.19  required the licensing of plumbers.  Any city by ordinance may 
 66.20  prescribe regulations, reasonable standards, and inspections and 
 66.21  grant permits to any person, firm, or corporation engaged in the 
 66.22  business of installing water softeners, who is not licensed as a 
 66.23  master plumber or journeyman plumber by the state commissioner 
 66.24  of health, to connect water softening and water filtering 
 66.25  equipment to private residence water distribution systems, where 
 66.26  provision has been previously made therefor and openings left 
 66.27  for that purpose or by use of cold water connections to a 
 66.28  domestic water heater; where it is not necessary to rearrange, 
 66.29  make any extension or alteration of, or addition to any pipe, 
 66.30  fixture or plumbing connected with the water system except to 
 66.31  connect the water softener, and provided the connections so made 
 66.32  comply with minimum standards prescribed by the state 
 66.33  commissioner of health. 
 66.34     Sec. 61.  [MEDICATIONS DISPENSED IN SCHOOLS STUDY.] 
 66.35     (a) The commissioner of health, in consultation with the 
 66.36  board of nursing, shall study the relationship between the Nurse 
 67.1   Practice Act, Minnesota Statutes, sections 148.171 to 148.285; 
 67.2   and 121A.22, which specifies the administration of medications 
 67.3   in schools and the activities authorized under these sections, 
 67.4   including the administration of prescription and nonprescription 
 67.5   medications and medications needed by students to manage a 
 67.6   chronic illness.  The commissioner shall also make 
 67.7   recommendations on necessary statutory changes needed to promote 
 67.8   student health and safety in relation to administering 
 67.9   medications in schools and addressing the changing health needs 
 67.10  of students.  
 67.11     (b) The commissioner shall convene a work group to assist 
 67.12  in the study and recommendations.  The work group shall consist 
 67.13  of representatives of the commissioner of human services; the 
 67.14  commissioner of children, families, and learning; the board of 
 67.15  nursing; the board of teaching; school nurses; parents; school 
 67.16  administrators; school board associations; the American Academy 
 67.17  of Pediatrics; and the Minnesota Nurse's Association. 
 67.18     (c) The commissioner shall submit these recommendations and 
 67.19  any recommended statutory changes to the legislature by January 
 67.20  15, 2002.  
 67.21     Sec. 62.  [REPEALER.] 
 67.22     Minnesota Statutes 2000, sections 144.148, subdivision 8; 
 67.23  145.882, subdivisions 3 and 4; and 145.927, are repealed. 
 67.24                             ARTICLE 2 
 67.25                            HEALTH CARE 
 67.26     Section 1.  Minnesota Statutes 2000, section 16A.87, is 
 67.27  amended to read: 
 67.28     16A.87 [TOBACCO SETTLEMENT FUND.] 
 67.29     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] The tobacco 
 67.30  settlement fund is established as a clearing account in the 
 67.31  state treasury.  
 67.32     Subd. 2.  [DEPOSIT OF MONEY.] The commissioner shall credit 
 67.33  to the tobacco settlement fund the tobacco settlement payments 
 67.34  received by the state on September 5, 1998, January 4, 1999, 
 67.35  January 3, 2000, and January 2, 2001, January 2, 2002, and 
 67.36  January 2, 2003, as a result of the settlement of the lawsuit 
 68.1   styled as State v. Philip Morris Inc., No. C1-94-8565 (Minnesota 
 68.2   District Court, Second Judicial District).  
 68.3      Subd. 3.  [APPROPRIATION.] (a) Of the amounts credited to 
 68.4   the fund prior to June 30, 2001, 61 percent is appropriated for 
 68.5   transfer to the tobacco use prevention and local public health 
 68.6   endowment fund created in section 144.395 and 39 percent is 
 68.7   appropriated for transfer to the medical education endowment 
 68.8   fund created in section 62J.694. 
 68.9      (b) The entire amount credited to the fund from the 
 68.10  payments made on January 2, 2002, and on January 2, 2003, are 
 68.11  appropriated for transfer to the children's health care 
 68.12  endowment fund created in section 256.952.  
 68.13     Subd. 4.  [SUNSET.] The tobacco settlement fund expires 
 68.14  June 30, 2015.  
 68.15     Sec. 2.  Minnesota Statutes 2000, section 62A.095, 
 68.16  subdivision 1, is amended to read: 
 68.17     Subdivision 1.  [APPLICABILITY.] (a) No health plan shall 
 68.18  be offered, sold, or issued to a resident of this state, or to 
 68.19  cover a resident of this state, unless the health plan complies 
 68.20  with subdivision 2. 
 68.21     (b) Health plans providing benefits under health care 
 68.22  programs administered by the commissioner of human services are 
 68.23  not subject to the limits described in subdivision 2 but are 
 68.24  subject to the right of subrogation provisions under section 
 68.25  256B.37 and the lien provisions under section 256.015; 256B.042; 
 68.26  256D.03, subdivision 8; or 256L.03, subdivision 6. 
 68.27     Sec. 3.  Minnesota Statutes 2000, section 62J.692, 
 68.28  subdivision 7, is amended to read: 
 68.29     Subd. 7.  [TRANSFERS FROM THE COMMISSIONER OF HUMAN 
 68.30  SERVICES.] (a) The amount transferred according to section 
 68.31  256B.69, subdivision 5c, paragraph (a), clause (3), shall be 
 68.32  distributed to the University of Minnesota academic health 
 68.33  center.  
 68.34     (b) The amount transferred according to section 256B.69, 
 68.35  subdivision 5c, paragraph (a), clause (4), shall be distributed 
 68.36  to the Hennepin county medical center.  
 69.1      (c) The amount transferred according to section 256B.69, 
 69.2   subdivision 5c, paragraph (a), clause (2), shall be distributed 
 69.3   by the commissioner to clinical medical education programs that 
 69.4   meet the qualifications of subdivision 3 based on a distribution 
 69.5   formula that reflects a summation of two factors: 
 69.6      (1) an education factor, which is determined by the total 
 69.7   number of eligible trainee FTEs and the total statewide average 
 69.8   costs per trainee, by type of trainee, in each clinical medical 
 69.9   education program; and 
 69.10     (2) a public program volume factor, which is determined by 
 69.11  the total volume of public program revenue received by each 
 69.12  training site as a percentage of all public program revenue 
 69.13  received by all training sites in the fund pool created under 
 69.14  this subdivision.  
 69.15     In this formula, the education factor shall be weighted at 
 69.16  50 percent and the public program volume factor shall be 
 69.17  weighted at 50 percent. 
 69.18     (b) (d) Public program revenue for the formula in paragraph 
 69.19  (a) (c) shall include revenue from medical assistance, prepaid 
 69.20  medical assistance, general assistance medical care, and prepaid 
 69.21  general assistance medical care. 
 69.22     (c) Training sites that receive no public program revenue 
 69.23  shall be ineligible for funds available under this 
 69.24  subdivision paragraph (c).  
 69.25     Sec. 4.  Minnesota Statutes 2000, section 62J.694, 
 69.26  subdivision 2, is amended to read: 
 69.27     Subd. 2.  [EXPENDITURES.] (a) Up to five percent of the 
 69.28  fair market value of the fund is appropriated for medical 
 69.29  education activities in the state of Minnesota.  The 
 69.30  appropriations are to be transferred quarterly for the purposes 
 69.31  identified in the following paragraphs.  
 69.32     (b) For fiscal year 2000, 70 percent of the appropriation 
 69.33  in paragraph (a) is for transfer to the board of regents for the 
 69.34  instructional costs of health professional programs at the 
 69.35  academic health center and affiliated teaching institutions, and 
 69.36  30 percent of the appropriation is for transfer to the 
 70.1   commissioner of health to be distributed for medical education 
 70.2   under section 62J.692.  
 70.3      (c) For fiscal year 2001, 49 percent of the appropriation 
 70.4   in paragraph (a) is for transfer to the board of regents for the 
 70.5   instructional costs of health professional programs at the 
 70.6   academic health center and affiliated teaching institutions, and 
 70.7   51 percent is for transfer to the commissioner of health to be 
 70.8   distributed for medical education under section 62J.692. 
 70.9      (d) For fiscal year 2002, and each year thereafter, 42 
 70.10  percent of the appropriation in paragraph (a) may be 
 70.11  appropriated by another law for the instructional costs of 
 70.12  health professional programs at publicly funded academic health 
 70.13  centers and affiliated teaching institutions is for transfer to 
 70.14  the commissioner of human services to be used to increase the 
 70.15  capitation payments under section 256B.69, and 58 percent is for 
 70.16  transfer to the commissioner of health to be distributed for 
 70.17  medical education under section 62J.692. 
 70.18     (e) A maximum of $150,000 of each annual appropriation to 
 70.19  the commissioner of health in paragraph (d) may be used by the 
 70.20  commissioner for administrative expenses associated with 
 70.21  implementing section 62J.692.  
 70.22     Sec. 5.  Minnesota Statutes 2000, section 62Q.19, 
 70.23  subdivision 2, is amended to read: 
 70.24     Subd. 2.  [APPLICATION.] (a) Any provider may apply to the 
 70.25  commissioner for designation as an essential community provider 
 70.26  by submitting an application form developed by the 
 70.27  commissioner.  Except as provided in paragraph (d), applications 
 70.28  must be accepted within two years after the effective date of 
 70.29  the rules adopted by the commissioner to implement this section. 
 70.30     (b) Each application submitted must be accompanied by an 
 70.31  application fee in an amount determined by the commissioner.  
 70.32  The fee shall be no more than what is needed to cover the 
 70.33  administrative costs of processing the application. 
 70.34     (c) The name, address, contact person, and the date by 
 70.35  which the commissioner's decision is expected to be made shall 
 70.36  be classified as public data under section 13.41.  All other 
 71.1   information contained in the application form shall be 
 71.2   classified as private data under section 13.41 until the 
 71.3   application has been approved, approved as modified, or denied 
 71.4   by the commissioner.  Once the decision has been made, all 
 71.5   information shall be classified as public data unless the 
 71.6   applicant designates and the commissioner determines that the 
 71.7   information contains trade secret information. 
 71.8      (d) The commissioner shall accept an application for 
 71.9   designation as an essential community provider until June 30, 
 71.10  2001, from: 
 71.11     (1) one applicant that is a nonprofit community health care 
 71.12  facility, certified as a medical assistance provider effective 
 71.13  April 1, 1998, that provides culturally competent health care to 
 71.14  an underserved Southeast Asian immigrant and refugee population 
 71.15  residing in the immediate neighborhood of the facility; 
 71.16     (2) one applicant that is a nonprofit home health care 
 71.17  provider, certified as a Medicare and a medical assistance 
 71.18  provider that provides culturally competent home health care 
 71.19  services to a low-income culturally diverse population; 
 71.20     (3) up to five applicants that are nonprofit community 
 71.21  mental health centers certified as medical assistance providers 
 71.22  that provide mental health services to children with serious 
 71.23  emotional disturbance and their families or to adults with 
 71.24  serious and persistent mental illness; and 
 71.25     (4) one applicant that is a nonprofit provider certified as 
 71.26  a medical assistance provider that provides mental health, child 
 71.27  development, and family services to children with physical and 
 71.28  mental health disorders and their families. 
 71.29     (e) The commissioner shall accept applications for 
 71.30  designation as an essential community provider until June 30, 
 71.31  2002, from an alternative school authorized under sections 
 71.32  123A.05 to 123A.08 or under section 124D.68 and a charter school 
 71.33  authorized under section 124D.10.  For these schools, the 
 71.34  essential community provider designation applies for mental 
 71.35  health services delivered by a licensed health care or social 
 71.36  services practitioner to a child currently enrolled in the 
 72.1   school. 
 72.2      Sec. 6.  [145.495] [HEALTH CARE SAFETY NET ENDOWMENT FUND.] 
 72.3      Subdivision 1.  [CREATION.] The health care safety net 
 72.4   endowment fund is created in the state treasury.  The state 
 72.5   board of investment shall invest the fund under section 11A.24.  
 72.6   All earnings of the fund must be credited to the fund.  The 
 72.7   principal of the fund must be maintained inviolate, except that 
 72.8   the principal may be used to make expenditures from the fund for 
 72.9   the purposes specified in this section. 
 72.10     Subd. 2.  [EXPENDITURES.] (a) For fiscal year 2003, and 
 72.11  each year thereafter, up to five percent of the average of the 
 72.12  fair market values of the fund for the preceding 12 months is 
 72.13  appropriated for the purposes identified in clauses (1) to (4): 
 72.14     (1) 26.7 percent is appropriated to the commissioner of 
 72.15  health to distributed as grants to community clinics in 
 72.16  accordance in section 145.928; 
 72.17     (2) 26.7 percent is appropriated to the commissioner of 
 72.18  commerce to be paid to the Minnesota comprehensive health 
 72.19  association for the exclusive purpose of reducing the 
 72.20  association's operating deficit assessment for the year; 
 72.21     (3) 33.3 percent is appropriated to the commissioner of 
 72.22  health to be distributed as rural hospital capital improvement 
 72.23  grants in accordance with section 144.148; and 
 72.24     (4) 13.3 percent is appropriated to the commissioner of 
 72.25  human services to be distributed as dental access grants in 
 72.26  accordance with section 256B.53.  If the amount appropriated is 
 72.27  not used within that fiscal year for dental access grants, the 
 72.28  commissioner of finance shall transfer the remaining amount to 
 72.29  the commissioner of health to be added to the amount to be 
 72.30  distributed as rural hospital capital improvement grants for the 
 72.31  next fiscal year. 
 72.32     Subd. 3.  [ENDOWMENT FUND NOT TO SUPPLANT EXISTING 
 72.33  FUNDS.] Appropriations from the fund must not be used as a 
 72.34  substitute for traditional sources of funding for health care 
 72.35  programs.  Any local political subdivision of the state 
 72.36  receiving money under this section must ensure that existing 
 73.1   local financial efforts remain in place.  
 73.2      Subd. 4.  [HEALTH CARE SAFETY NET ENDOWMENT FUND.] 
 73.3      If the health care safety net endowment fund created under 
 73.4   subdivision 1 is repealed, the commissioner of finance shall 
 73.5   transfer the principal and any remaining interest to the health 
 73.6   care access fund. 
 73.7      Sec. 7.  Minnesota Statutes 2000, section 150A.10, is 
 73.8   amended by adding a subdivision to read: 
 73.9      Subd. 1a.  [LIMITED AUTHORIZATION FOR DENTAL 
 73.10  HYGIENISTS.] (a) Notwithstanding subdivision 1, a dental 
 73.11  hygienist licensed under this chapter may be employed or 
 73.12  retained by a health care facility to perform dental hygiene 
 73.13  services described under paragraph (b) without the patient first 
 73.14  being examined by a licensed dentist if the dental hygienist: 
 73.15     (1) has two years practical clinical experience with a 
 73.16  licensed dentist within the preceding five years; and 
 73.17     (2) has entered into a collaborative agreement with a 
 73.18  licensed dentist that designates authorization for the services 
 73.19  provided by the dental hygienist. 
 73.20     (b) The dental hygiene services authorized to be performed 
 73.21  by a dental hygienist under this subdivision are limited to 
 73.22  removal of deposits and stains from the surfaces of the teeth, 
 73.23  application of topical preventive or prophylactic agents, 
 73.24  polishing and smoothing restorations, and performance of root 
 73.25  planing and soft-tissue curettage.  The dental hygienist shall 
 73.26  not place pit and fissure sealants, unless the patient has been 
 73.27  recently examined and the treatment planned by a licensed 
 73.28  dentist.  The dental hygienist shall not perform injections of 
 73.29  anesthetic agents or the administration of nitrous oxide unless 
 73.30  under the indirect supervision of a licensed dentist.  The 
 73.31  performance of dental hygiene services in a health care facility 
 73.32  is limited to patients, students, and residents of the 
 73.33  facility.  A dental hygienist must refer patients to a licensed 
 73.34  dentist for dental diagnosis, treatment planning, and dental 
 73.35  treatment. 
 73.36     (c) A collaborating dentist must be licensed under this 
 74.1   chapter and may enter into a collaborative agreement with more 
 74.2   than one dental hygienist.  The collaborative agreement must be 
 74.3   maintained by the dentist and the dental hygienist and must be 
 74.4   made available to the board upon request.  
 74.5      (d) For the purposes of this subdivision, a "health care 
 74.6   facility" is limited to a hospital; nursing home; home health 
 74.7   agency; group home serving the elderly, disabled, or juveniles; 
 74.8   state-operated facility licensed by the commissioner of human 
 74.9   services or the commissioner of corrections; and federal, state, 
 74.10  or local public health facility, community clinic, or tribal 
 74.11  clinic.  
 74.12     (e) For purposes of this subdivision, "a collaborative 
 74.13  agreement" means an agreement with a licensed dentist who 
 74.14  authorizes and accepts responsibility for the services performed 
 74.15  by the dental hygienist.  The services authorized under this 
 74.16  subdivision and the collaborative agreement may be performed 
 74.17  without the presence of a licensed dentist and may be performed 
 74.18  at a location other than the usual place of practice of the 
 74.19  dentist or dental hygienist and without a dentist's diagnosis 
 74.20  and treatment plan. 
 74.21     Sec. 8.  Minnesota Statutes 2000, section 256.01, 
 74.22  subdivision 2, is amended to read: 
 74.23     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
 74.24  section 241.021, subdivision 2, the commissioner of human 
 74.25  services shall: 
 74.26     (1) Administer and supervise all forms of public assistance 
 74.27  provided for by state law and other welfare activities or 
 74.28  services as are vested in the commissioner.  Administration and 
 74.29  supervision of human services activities or services includes, 
 74.30  but is not limited to, assuring timely and accurate distribution 
 74.31  of benefits, completeness of service, and quality program 
 74.32  management.  In addition to administering and supervising human 
 74.33  services activities vested by law in the department, the 
 74.34  commissioner shall have the authority to: 
 74.35     (a) require county agency participation in training and 
 74.36  technical assistance programs to promote compliance with 
 75.1   statutes, rules, federal laws, regulations, and policies 
 75.2   governing human services; 
 75.3      (b) monitor, on an ongoing basis, the performance of county 
 75.4   agencies in the operation and administration of human services, 
 75.5   enforce compliance with statutes, rules, federal laws, 
 75.6   regulations, and policies governing welfare services and promote 
 75.7   excellence of administration and program operation; 
 75.8      (c) develop a quality control program or other monitoring 
 75.9   program to review county performance and accuracy of benefit 
 75.10  determinations; 
 75.11     (d) require county agencies to make an adjustment to the 
 75.12  public assistance benefits issued to any individual consistent 
 75.13  with federal law and regulation and state law and rule and to 
 75.14  issue or recover benefits as appropriate; 
 75.15     (e) delay or deny payment of all or part of the state and 
 75.16  federal share of benefits and administrative reimbursement 
 75.17  according to the procedures set forth in section 256.017; 
 75.18     (f) make contracts with and grants to public and private 
 75.19  agencies and organizations, both profit and nonprofit, and 
 75.20  individuals, using appropriated funds; and 
 75.21     (g) enter into contractual agreements with federally 
 75.22  recognized Indian tribes with a reservation in Minnesota to the 
 75.23  extent necessary for the tribe to operate a federally approved 
 75.24  family assistance program or any other program under the 
 75.25  supervision of the commissioner.  The commissioner shall consult 
 75.26  with the affected county or counties in the contractual 
 75.27  agreement negotiations, if the county or counties wish to be 
 75.28  included, in order to avoid the duplication of county and tribal 
 75.29  assistance program services.  The commissioner may establish 
 75.30  necessary accounts for the purposes of receiving and disbursing 
 75.31  funds as necessary for the operation of the programs. 
 75.32     (2) Inform county agencies, on a timely basis, of changes 
 75.33  in statute, rule, federal law, regulation, and policy necessary 
 75.34  to county agency administration of the programs. 
 75.35     (3) Administer and supervise all child welfare activities; 
 75.36  promote the enforcement of laws protecting handicapped, 
 76.1   dependent, neglected and delinquent children, and children born 
 76.2   to mothers who were not married to the children's fathers at the 
 76.3   times of the conception nor at the births of the children; 
 76.4   license and supervise child-caring and child-placing agencies 
 76.5   and institutions; supervise the care of children in boarding and 
 76.6   foster homes or in private institutions; and generally perform 
 76.7   all functions relating to the field of child welfare now vested 
 76.8   in the state board of control. 
 76.9      (4) Administer and supervise all noninstitutional service 
 76.10  to handicapped persons, including those who are visually 
 76.11  impaired, hearing impaired, or physically impaired or otherwise 
 76.12  handicapped.  The commissioner may provide and contract for the 
 76.13  care and treatment of qualified indigent children in facilities 
 76.14  other than those located and available at state hospitals when 
 76.15  it is not feasible to provide the service in state hospitals. 
 76.16     (5) Assist and actively cooperate with other departments, 
 76.17  agencies and institutions, local, state, and federal, by 
 76.18  performing services in conformity with the purposes of Laws 
 76.19  1939, chapter 431. 
 76.20     (6) Act as the agent of and cooperate with the federal 
 76.21  government in matters of mutual concern relative to and in 
 76.22  conformity with the provisions of Laws 1939, chapter 431, 
 76.23  including the administration of any federal funds granted to the 
 76.24  state to aid in the performance of any functions of the 
 76.25  commissioner as specified in Laws 1939, chapter 431, and 
 76.26  including the promulgation of rules making uniformly available 
 76.27  medical care benefits to all recipients of public assistance, at 
 76.28  such times as the federal government increases its participation 
 76.29  in assistance expenditures for medical care to recipients of 
 76.30  public assistance, the cost thereof to be borne in the same 
 76.31  proportion as are grants of aid to said recipients. 
 76.32     (7) Establish and maintain any administrative units 
 76.33  reasonably necessary for the performance of administrative 
 76.34  functions common to all divisions of the department. 
 76.35     (8) Act as designated guardian of both the estate and the 
 76.36  person of all the wards of the state of Minnesota, whether by 
 77.1   operation of law or by an order of court, without any further 
 77.2   act or proceeding whatever, except as to persons committed as 
 77.3   mentally retarded.  For children under the guardianship of the 
 77.4   commissioner whose interests would be best served by adoptive 
 77.5   placement, the commissioner may contract with a licensed 
 77.6   child-placing agency to provide adoption services.  A contract 
 77.7   with a licensed child-placing agency must be designed to 
 77.8   supplement existing county efforts and may not replace existing 
 77.9   county programs, unless the replacement is agreed to by the 
 77.10  county board and the appropriate exclusive bargaining 
 77.11  representative or the commissioner has evidence that child 
 77.12  placements of the county continue to be substantially below that 
 77.13  of other counties.  Funds encumbered and obligated under an 
 77.14  agreement for a specific child shall remain available until the 
 77.15  terms of the agreement are fulfilled or the agreement is 
 77.16  terminated. 
 77.17     (9) Act as coordinating referral and informational center 
 77.18  on requests for service for newly arrived immigrants coming to 
 77.19  Minnesota. 
 77.20     (10) The specific enumeration of powers and duties as 
 77.21  hereinabove set forth shall in no way be construed to be a 
 77.22  limitation upon the general transfer of powers herein contained. 
 77.23     (11) Establish county, regional, or statewide schedules of 
 77.24  maximum fees and charges which may be paid by county agencies 
 77.25  for medical, dental, surgical, hospital, nursing and nursing 
 77.26  home care and medicine and medical supplies under all programs 
 77.27  of medical care provided by the state and for congregate living 
 77.28  care under the income maintenance programs. 
 77.29     (12) Have the authority to conduct and administer 
 77.30  experimental projects to test methods and procedures of 
 77.31  administering assistance and services to recipients or potential 
 77.32  recipients of public welfare.  To carry out such experimental 
 77.33  projects, it is further provided that the commissioner of human 
 77.34  services is authorized to waive the enforcement of existing 
 77.35  specific statutory program requirements, rules, and standards in 
 77.36  one or more counties.  The order establishing the waiver shall 
 78.1   provide alternative methods and procedures of administration, 
 78.2   shall not be in conflict with the basic purposes, coverage, or 
 78.3   benefits provided by law, and in no event shall the duration of 
 78.4   a project exceed four years.  It is further provided that no 
 78.5   order establishing an experimental project as authorized by the 
 78.6   provisions of this section shall become effective until the 
 78.7   following conditions have been met: 
 78.8      (a) The secretary of health and human services of the 
 78.9   United States has agreed, for the same project, to waive state 
 78.10  plan requirements relative to statewide uniformity. 
 78.11     (b) A comprehensive plan, including estimated project 
 78.12  costs, shall be approved by the legislative advisory commission 
 78.13  and filed with the commissioner of administration.  
 78.14     (13) According to federal requirements, establish 
 78.15  procedures to be followed by local welfare boards in creating 
 78.16  citizen advisory committees, including procedures for selection 
 78.17  of committee members. 
 78.18     (14) Allocate federal fiscal disallowances or sanctions 
 78.19  which are based on quality control error rates for the aid to 
 78.20  families with dependent children program formerly codified in 
 78.21  sections 256.72 to 256.87, medical assistance, or food stamp 
 78.22  program in the following manner:  
 78.23     (a) One-half of the total amount of the disallowance shall 
 78.24  be borne by the county boards responsible for administering the 
 78.25  programs.  For the medical assistance and the AFDC program 
 78.26  formerly codified in sections 256.72 to 256.87, disallowances 
 78.27  shall be shared by each county board in the same proportion as 
 78.28  that county's expenditures for the sanctioned program are to the 
 78.29  total of all counties' expenditures for the AFDC program 
 78.30  formerly codified in sections 256.72 to 256.87, and medical 
 78.31  assistance programs.  For the food stamp program, sanctions 
 78.32  shall be shared by each county board, with 50 percent of the 
 78.33  sanction being distributed to each county in the same proportion 
 78.34  as that county's administrative costs for food stamps are to the 
 78.35  total of all food stamp administrative costs for all counties, 
 78.36  and 50 percent of the sanctions being distributed to each county 
 79.1   in the same proportion as that county's value of food stamp 
 79.2   benefits issued are to the total of all benefits issued for all 
 79.3   counties.  Each county shall pay its share of the disallowance 
 79.4   to the state of Minnesota.  When a county fails to pay the 
 79.5   amount due hereunder, the commissioner may deduct the amount 
 79.6   from reimbursement otherwise due the county, or the attorney 
 79.7   general, upon the request of the commissioner, may institute 
 79.8   civil action to recover the amount due. 
 79.9      (b) Notwithstanding the provisions of paragraph (a), if the 
 79.10  disallowance results from knowing noncompliance by one or more 
 79.11  counties with a specific program instruction, and that knowing 
 79.12  noncompliance is a matter of official county board record, the 
 79.13  commissioner may require payment or recover from the county or 
 79.14  counties, in the manner prescribed in paragraph (a), an amount 
 79.15  equal to the portion of the total disallowance which resulted 
 79.16  from the noncompliance, and may distribute the balance of the 
 79.17  disallowance according to paragraph (a).  
 79.18     (15) Develop and implement special projects that maximize 
 79.19  reimbursements and result in the recovery of money to the 
 79.20  state.  For the purpose of recovering state money, the 
 79.21  commissioner may enter into contracts with third parties.  Any 
 79.22  recoveries that result from projects or contracts entered into 
 79.23  under this paragraph shall be deposited in the state treasury 
 79.24  and credited to a special account until the balance in the 
 79.25  account reaches $1,000,000.  When the balance in the account 
 79.26  exceeds $1,000,000, the excess shall be transferred and credited 
 79.27  to the general fund.  All money in the account is appropriated 
 79.28  to the commissioner for the purposes of this paragraph. 
 79.29     (16) Have the authority to make direct payments to 
 79.30  facilities providing shelter to women and their children 
 79.31  according to section 256D.05, subdivision 3.  Upon the written 
 79.32  request of a shelter facility that has been denied payments 
 79.33  under section 256D.05, subdivision 3, the commissioner shall 
 79.34  review all relevant evidence and make a determination within 30 
 79.35  days of the request for review regarding issuance of direct 
 79.36  payments to the shelter facility.  Failure to act within 30 days 
 80.1   shall be considered a determination not to issue direct payments.
 80.2      (17) Have the authority to establish and enforce the 
 80.3   following county reporting requirements:  
 80.4      (a) The commissioner shall establish fiscal and statistical 
 80.5   reporting requirements necessary to account for the expenditure 
 80.6   of funds allocated to counties for human services programs.  
 80.7   When establishing financial and statistical reporting 
 80.8   requirements, the commissioner shall evaluate all reports, in 
 80.9   consultation with the counties, to determine if the reports can 
 80.10  be simplified or the number of reports can be reduced. 
 80.11     (b) The county board shall submit monthly or quarterly 
 80.12  reports to the department as required by the commissioner.  
 80.13  Monthly reports are due no later than 15 working days after the 
 80.14  end of the month.  Quarterly reports are due no later than 30 
 80.15  calendar days after the end of the quarter, unless the 
 80.16  commissioner determines that the deadline must be shortened to 
 80.17  20 calendar days to avoid jeopardizing compliance with federal 
 80.18  deadlines or risking a loss of federal funding.  Only reports 
 80.19  that are complete, legible, and in the required format shall be 
 80.20  accepted by the commissioner.  
 80.21     (c) If the required reports are not received by the 
 80.22  deadlines established in clause (b), the commissioner may delay 
 80.23  payments and withhold funds from the county board until the next 
 80.24  reporting period.  When the report is needed to account for the 
 80.25  use of federal funds and the late report results in a reduction 
 80.26  in federal funding, the commissioner shall withhold from the 
 80.27  county boards with late reports an amount equal to the reduction 
 80.28  in federal funding until full federal funding is received.  
 80.29     (d) A county board that submits reports that are late, 
 80.30  illegible, incomplete, or not in the required format for two out 
 80.31  of three consecutive reporting periods is considered 
 80.32  noncompliant.  When a county board is found to be noncompliant, 
 80.33  the commissioner shall notify the county board of the reason the 
 80.34  county board is considered noncompliant and request that the 
 80.35  county board develop a corrective action plan stating how the 
 80.36  county board plans to correct the problem.  The corrective 
 81.1   action plan must be submitted to the commissioner within 45 days 
 81.2   after the date the county board received notice of noncompliance.
 81.3      (e) The final deadline for fiscal reports or amendments to 
 81.4   fiscal reports is one year after the date the report was 
 81.5   originally due.  If the commissioner does not receive a report 
 81.6   by the final deadline, the county board forfeits the funding 
 81.7   associated with the report for that reporting period and the 
 81.8   county board must repay any funds associated with the report 
 81.9   received for that reporting period. 
 81.10     (f) The commissioner may not delay payments, withhold 
 81.11  funds, or require repayment under paragraph (c) or (e) if the 
 81.12  county demonstrates that the commissioner failed to provide 
 81.13  appropriate forms, guidelines, and technical assistance to 
 81.14  enable the county to comply with the requirements.  If the 
 81.15  county board disagrees with an action taken by the commissioner 
 81.16  under paragraph (c) or (e), the county board may appeal the 
 81.17  action according to sections 14.57 to 14.69. 
 81.18     (g) Counties subject to withholding of funds under 
 81.19  paragraph (c) or forfeiture or repayment of funds under 
 81.20  paragraph (e) shall not reduce or withhold benefits or services 
 81.21  to clients to cover costs incurred due to actions taken by the 
 81.22  commissioner under paragraph (c) or (e). 
 81.23     (18) Allocate federal fiscal disallowances or sanctions for 
 81.24  audit exceptions when federal fiscal disallowances or sanctions 
 81.25  are based on a statewide random sample for the foster care 
 81.26  program under title IV-E of the Social Security Act, United 
 81.27  States Code, title 42, in direct proportion to each county's 
 81.28  title IV-E foster care maintenance claim for that period. 
 81.29     (19) Be responsible for ensuring the detection, prevention, 
 81.30  investigation, and resolution of fraudulent activities or 
 81.31  behavior by applicants, recipients, and other participants in 
 81.32  the human services programs administered by the department. 
 81.33     (20) Require county agencies to identify overpayments, 
 81.34  establish claims, and utilize all available and cost-beneficial 
 81.35  methodologies to collect and recover these overpayments in the 
 81.36  human services programs administered by the department. 
 82.1      (21) Have the authority to administer a drug rebate program 
 82.2   for drugs purchased pursuant to the prescription drug program 
 82.3   established under section 256.955 after the beneficiary's 
 82.4   satisfaction of any deductible established in the program.  The 
 82.5   commissioner shall require a rebate agreement from all 
 82.6   manufacturers of covered drugs as defined in section 256B.0625, 
 82.7   subdivision 13.  Rebate agreements for prescription drugs 
 82.8   delivered on or after July 1, 2002, must include rebates for 
 82.9   individuals covered under the prescription drug program who are 
 82.10  under 65 years of age.  For each drug, the amount of the rebate 
 82.11  shall be equal to the basic rebate as defined for purposes of 
 82.12  the federal rebate program in United States Code, title 42, 
 82.13  section 1396r-8(c)(1).  This basic rebate shall be applied to 
 82.14  single-source and multiple-source drugs.  The manufacturers must 
 82.15  provide full payment within 30 days of receipt of the state 
 82.16  invoice for the rebate within the terms and conditions used for 
 82.17  the federal rebate program established pursuant to section 1927 
 82.18  of title XIX of the Social Security Act.  The manufacturers must 
 82.19  provide the commissioner with any information necessary to 
 82.20  verify the rebate determined per drug.  The rebate program shall 
 82.21  utilize the terms and conditions used for the federal rebate 
 82.22  program established pursuant to section 1927 of title XIX of the 
 82.23  Social Security Act. 
 82.24     (22) Have the authority to administer the federal drug 
 82.25  rebate program for drugs purchased under the medical assistance 
 82.26  program as allowed by section 1927 of title XIX of the Social 
 82.27  Security Act and according to the terms and conditions of 
 82.28  section 1927.  Rebates shall be collected for all drugs that 
 82.29  have been dispensed or administered in an outpatient setting and 
 82.30  that are from manufacturers who have signed a rebate agreement 
 82.31  with the United States Department of Health and Human Services. 
 82.32     (22) (23) Operate the department's communication systems 
 82.33  account established in Laws 1993, First Special Session chapter 
 82.34  1, article 1, section 2, subdivision 2, to manage shared 
 82.35  communication costs necessary for the operation of the programs 
 82.36  the commissioner supervises.  A communications account may also 
 83.1   be established for each regional treatment center which operates 
 83.2   communications systems.  Each account must be used to manage 
 83.3   shared communication costs necessary for the operations of the 
 83.4   programs the commissioner supervises.  The commissioner may 
 83.5   distribute the costs of operating and maintaining communication 
 83.6   systems to participants in a manner that reflects actual usage. 
 83.7   Costs may include acquisition, licensing, insurance, 
 83.8   maintenance, repair, staff time and other costs as determined by 
 83.9   the commissioner.  Nonprofit organizations and state, county, 
 83.10  and local government agencies involved in the operation of 
 83.11  programs the commissioner supervises may participate in the use 
 83.12  of the department's communications technology and share in the 
 83.13  cost of operation.  The commissioner may accept on behalf of the 
 83.14  state any gift, bequest, devise or personal property of any 
 83.15  kind, or money tendered to the state for any lawful purpose 
 83.16  pertaining to the communication activities of the department.  
 83.17  Any money received for this purpose must be deposited in the 
 83.18  department's communication systems accounts.  Money collected by 
 83.19  the commissioner for the use of communication systems must be 
 83.20  deposited in the state communication systems account and is 
 83.21  appropriated to the commissioner for purposes of this section. 
 83.22     (23) (24) Receive any federal matching money that is made 
 83.23  available through the medical assistance program for the 
 83.24  consumer satisfaction survey.  Any federal money received for 
 83.25  the survey is appropriated to the commissioner for this 
 83.26  purpose.  The commissioner may expend the federal money received 
 83.27  for the consumer satisfaction survey in either year of the 
 83.28  biennium. 
 83.29     (24) (25) Incorporate cost reimbursement claims from First 
 83.30  Call Minnesota and Greater Twin Cities United Way into the 
 83.31  federal cost reimbursement claiming processes of the department 
 83.32  according to federal law, rule, and regulations.  Any 
 83.33  reimbursement received is appropriated to the commissioner and 
 83.34  shall be disbursed to First Call Minnesota and Greater Twin 
 83.35  Cities United Way according to normal department payment 
 83.36  schedules. 
 84.1      (25) (26) Develop recommended standards for foster care 
 84.2   homes that address the components of specialized therapeutic 
 84.3   services to be provided by foster care homes with those services.
 84.4      Sec. 9.  [256.952] [CHILDREN'S HEALTH CARE ENDOWMENT FUND.] 
 84.5      Subdivision 1.  [CREATION.] The children's health care 
 84.6   endowment fund is created in the state treasury.  The state 
 84.7   board of investment shall invest the fund under section 11A.24.  
 84.8   All earnings of the fund must be credited to the fund.  The 
 84.9   principal of the fund must be maintained inviolate, except that 
 84.10  the principal may be used to make expenditures from the fund for 
 84.11  the purposes specified in this section. 
 84.12     Subd. 2.  [EXPENDITURES.] (a) For fiscal year 2003, up to 
 84.13  five percent of the average of the fair market values of the 
 84.14  fund for the preceding six months is appropriated to the 
 84.15  commissioner of human services to provide coverage for 
 84.16  low-income children in the MinnesotaCare program.  
 84.17     (b) For fiscal year 2004 and each year thereafter, up to 
 84.18  five percent of the average of the fair market values of the 
 84.19  fund for the preceding 12 months is appropriated to the 
 84.20  commissioner of human services to provide coverage for 
 84.21  low-income children in the MinnesotaCare program.  
 84.22     Sec. 10.  Minnesota Statutes 2000, section 256.955, 
 84.23  subdivision 2, is amended to read: 
 84.24     Subd. 2.  [DEFINITIONS.] (a) For purposes of this section, 
 84.25  the following definitions apply. 
 84.26     (b) "Health plan" has the meaning provided in section 
 84.27  62Q.01, subdivision 3. 
 84.28     (c) "Health plan company" has the meaning provided in 
 84.29  section 62Q.01, subdivision 4. 
 84.30     (d) "Qualified individual" means an individual who meets 
 84.31  the requirements described in subdivision 2a or 2b, and: 
 84.32     (1) who is not determined eligible for medical assistance 
 84.33  according to section 256B.0575, who is not determined eligible 
 84.34  for medical assistance or general assistance medical care 
 84.35  without a spenddown, or who is not enrolled in MinnesotaCare; 
 84.36     (2) is not enrolled in prescription drug coverage under a 
 85.1   health plan; 
 85.2      (3) is not enrolled in prescription drug coverage under a 
 85.3   Medicare supplement plan, as defined in sections 62A.31 to 
 85.4   62A.44, or policies, contracts, or certificates that supplement 
 85.5   Medicare issued by health maintenance organizations or those 
 85.6   policies, contracts, or certificates governed by section 1833 or 
 85.7   1876 of the federal Social Security Act, United States Code, 
 85.8   title 42, section 1395, et seq., as amended; 
 85.9      (4) has not had coverage described in clauses (2) and (3) 
 85.10  for at least four months prior to application for the program; 
 85.11  and 
 85.12     (5) is a permanent resident of Minnesota as defined in 
 85.13  section 256L.09. 
 85.14     (e) For purposes of clauses (2) and (3), prescription drug 
 85.15  coverage does not include: 
 85.16     (1) a Medicare risk product that provides prescription drug 
 85.17  coverage of less than $450 per year; or 
 85.18     (2) a Medicare cost product that provides prescription drug 
 85.19  coverage that provides a maximum benefit on brand name drugs of 
 85.20  nor more than $500 per year. 
 85.21     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
 85.22     Sec. 11.  Minnesota Statutes 2000, section 256.955, 
 85.23  subdivision 2a, is amended to read: 
 85.24     Subd. 2a.  [ELIGIBILITY.] An individual satisfying the 
 85.25  following requirements and the requirements described in 
 85.26  subdivision 2, paragraph (d), is eligible for the prescription 
 85.27  drug program: 
 85.28     (1) is at least 65 years of age or older; and 
 85.29     (2) is eligible as a qualified Medicare beneficiary 
 85.30  according to section 256B.057, subdivision 3 or 3a, or is 
 85.31  eligible under section 256B.057, subdivision 3 or 3a, and is 
 85.32  also eligible for medical assistance or general assistance 
 85.33  medical care with a spenddown as defined in section 256B.056, 
 85.34  subdivision 5 enrollee whose assets are no more than $10,000 for 
 85.35  a single individual and $18,000 for a married couple or family 
 85.36  of two or more, using the asset methodology for aged, blind, or 
 86.1   disabled individuals specified in section 256B.056, subdivision 
 86.2   1a; and 
 86.3      (2) has a household income that does not exceed 150 percent 
 86.4   of the federal poverty guidelines, using the income methodology 
 86.5   for aged, blind, or disabled individuals specified in section 
 86.6   256B.056, subdivision 1a. 
 86.7      <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
 86.8      Sec. 12.  Minnesota Statutes 2000, section 256.955, 
 86.9   subdivision 7, is amended to read: 
 86.10     Subd. 7.  [COST SHARING.] Program enrollees must satisfy 
 86.11  a $420 annual monthly deductible, based upon expenditures for 
 86.12  prescription drugs, to be paid in $35 monthly increments.  The 
 86.13  monthly deductible must be calculated by the commissioner based 
 86.14  upon the household income of the enrollee expressed as a 
 86.15  percentage of the federal poverty guidelines, using the 
 86.16  following sliding scale: 
 86.17            Household Income          Monthly Deductible
 86.18              of Enrollee
 86.19       not more than 120 percent             $35
 86.20       more than 120 percent
 86.21       but not more than 125 percent         $43
 86.22       more than 125 percent
 86.23       but not more than 130 percent         $52
 86.24       more than 130 percent
 86.25       but not more than 135 percent         $60
 86.26       more than 135 percent 
 86.27       but not more than 140 percent         $68
 86.28       more than 140 percent
 86.29       but not more than 145 percent         $77
 86.30       more than 145 percent
 86.31       but not more than 150 percent         $85
 86.32     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2002.
 86.33     Sec. 13.  Minnesota Statutes 2000, section 256.955, is 
 86.34  amended by adding a subdivision to read: 
 86.35     Subd. 10.  [DEDICATED ACCOUNT.] (a) The Minnesota 
 86.36  prescription drug dedicated account is established in the state 
 87.1   treasury.  The commissioner of finance shall credit to the 
 87.2   account all rebates paid under section 256.01, subdivision 1, 
 87.3   clause (21), any appropriations designated for the prescription 
 87.4   drug program and any federal funds received by the state to 
 87.5   implement a senior prescription drug program.  The commissioner 
 87.6   of finance shall ensure that account money is invested under 
 87.7   section 11A.25.  All money earned by the account must be 
 87.8   credited to the account.  
 87.9      (b) Money in the account is appropriated to the 
 87.10  commissioner of human services for the prescription drug program.
 87.11     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001.  
 87.12     Sec. 14.  [256.956] [PURCHASING ALLIANCE STOP-LOSS FUND.] 
 87.13     Subdivision 1.  [DEFINITIONS.] For purposes of this 
 87.14  section, the following definitions apply:  
 87.15     (a) "Commissioner" means the commissioner of human services.
 87.16     (b) "Health plan" means a policy, contract, or certificate 
 87.17  issued by a health plan company to a qualifying purchasing 
 87.18  alliance.  Any health plan issued to the members of a qualifying 
 87.19  purchasing alliance must meet the requirements of chapter 62L.  
 87.20     (c) "Health plan company" means: 
 87.21     (1) a health carrier as defined under section 62A.011, 
 87.22  subdivision 2; 
 87.23     (2) a community integrated service network operating under 
 87.24  chapter 62N; or 
 87.25     (3) an accountable provider network operating under chapter 
 87.26  62T.  
 87.27     (d) "Qualifying employer" means an employer who: 
 87.28     (1) is a member of a qualifying purchasing alliance; 
 87.29     (2) has at least one employee but no more than ten 
 87.30  employees or is a sole proprietor or farmer; 
 87.31     (3) did not offer employer-subsidized health care coverage 
 87.32  to its employees for at least 12 months prior to joining the 
 87.33  purchasing alliance; and 
 87.34     (4) is offering health coverage through the purchasing 
 87.35  alliance to all employees who work at least 20 hours per week 
 87.36  unless the employee is eligible for Medicare. 
 88.1   For purposes of this subdivision, "employer-subsidized health 
 88.2   coverage" means health coverage for which the employer pays at 
 88.3   least 50 percent of the cost of coverage for the employee.  
 88.4      (e) "Qualifying enrollee" means an employee of a qualifying 
 88.5   employer or the employee's dependent covered by a health plan.  
 88.6      (f) "Qualifying purchasing alliance" means a purchasing 
 88.7   alliance as defined in section 62T.01, subdivision 2, that: 
 88.8      (1) meets the requirements of chapter 62T; 
 88.9      (2) services a geographic area located in outstate 
 88.10  Minnesota, excluding the city of Duluth; and 
 88.11     (3) is organized and operating before May 1, 2001. 
 88.12     The criteria used by the qualifying purchasing alliance for 
 88.13  membership must be approved by the commissioner of health.  A 
 88.14  qualifying purchasing alliance may begin enrolling qualifying 
 88.15  employers after July 1, 2001, with enrollment ending by December 
 88.16  31, 2003.  
 88.17     Subd. 2.  [CREATION OF ACCOUNT.] A purchasing alliance 
 88.18  stop-loss fund account is established in the general fund.  The 
 88.19  commissioner shall use the money to establish a stop-loss fund 
 88.20  from which a health plan company may receive reimbursement for 
 88.21  claims paid for qualifying enrollees.  The account consists of 
 88.22  money appropriated by the legislature.  Money from the account 
 88.23  must be used for the stop-loss fund.  
 88.24     Subd. 3.  [REIMBURSEMENT.] (a) A health plan company may 
 88.25  receive reimbursement from the fund for 90 percent of the 
 88.26  portion of the claim that exceeds $30,000 but not of the portion 
 88.27  that exceeds $100,000 in a calendar year for a qualifying 
 88.28  enrollee.  
 88.29     (b) Claims shall be reported and funds shall be distributed 
 88.30  on a calendar-year basis.  Claims shall be eligible for 
 88.31  reimbursement only for the calendar year in which the claims 
 88.32  were paid.  
 88.33     (c) Once claims paid on behalf of a qualifying enrollee 
 88.34  reach $100,000 in a given calendar year, no further claims may 
 88.35  be submitted for reimbursement on behalf of that enrollee in 
 88.36  that calendar year.  
 89.1      Subd. 4.  [REQUEST PROCESS.] (a) Each health plan company 
 89.2   must submit a request for reimbursement from the fund on a form 
 89.3   prescribed by the commissioner.  Requests for payment must be 
 89.4   submitted no later than April 1 following the end of the 
 89.5   calendar year for which the reimbursement request is being made, 
 89.6   beginning April 1, 2002. 
 89.7      (b) The commissioner may require a health plan company to 
 89.8   submit claims data as needed in connection with the 
 89.9   reimbursement request.  
 89.10     Subd. 5.  [DISTRIBUTION.] (a) The commissioner shall 
 89.11  calculate the total claims reimbursement amount for all 
 89.12  qualifying health plan companies for the calendar year for which 
 89.13  claims are being reported and shall distribute the stop-loss 
 89.14  funds on an annual basis.  
 89.15     (b) In the event that the total amount requested for 
 89.16  reimbursement by the health plan companies for a calendar year 
 89.17  exceeds the funds available for distribution for claims paid by 
 89.18  all health plan companies during the same calendar year, the 
 89.19  commissioner shall provide for the pro rata distribution of the 
 89.20  available funds.  Each health plan company shall be eligible to 
 89.21  receive only a proportionate amount of the available funds as 
 89.22  the health plan company's total eligible claims paid compares to 
 89.23  the total eligible claims paid by all health plan companies.  
 89.24     (c) In the event that funds available for distribution for 
 89.25  claims paid by all health plan companies during a calendar year 
 89.26  exceed the total amount requested for reimbursement by all 
 89.27  health plan companies during the same calendar year, any excess 
 89.28  funds shall be reallocated for distribution in the next calendar 
 89.29  year.  
 89.30     Subd. 6.  [DATA.] Upon the request of the commissioner, 
 89.31  each health plan company shall furnish such data as the 
 89.32  commissioner deems necessary to administer the fund.  The 
 89.33  commissioner may require that such data be submitted on a per 
 89.34  enrollee, aggregate, or categorical basis.  Any data submitted 
 89.35  under this section shall be classified as private data or 
 89.36  nonpublic data as defined in section 13.02. 
 90.1      Subd. 7.  [DELEGATION.] The commissioner may delegate any 
 90.2   or all of the commissioner's administrative duties to another 
 90.3   state agency or to a private contractor.  
 90.4      Subd. 8.  [REPORT.] The commissioner of commerce, in 
 90.5   consultation with the office of rural health and the qualifying 
 90.6   purchasing alliances, shall evaluate the extent to which the 
 90.7   purchasing alliance stop-loss fund increases the availability of 
 90.8   employer-subsidized health care coverage for residents residing 
 90.9   in the geographic areas served by the qualifying purchasing 
 90.10  alliances.  A preliminary report must be submitted to the 
 90.11  legislature by February 15, 2003, and a final report must be 
 90.12  submitted by February 15, 2004.  
 90.13     Subd. 9.  [SUNSET.] This section shall expire January 1, 
 90.14  2005.  
 90.15     Sec. 15.  [256.958] [RETIRED DENTIST PROGRAM.] 
 90.16     Subdivision 1.  [PROGRAM.] The commissioner of human 
 90.17  services shall establish a program to reimburse a retired 
 90.18  dentist for the dentist's license fee and for the reasonable 
 90.19  cost of malpractice insurance compared to other dentists in the 
 90.20  community in exchange for the dentist providing 100 hours of 
 90.21  dental services on a volunteer basis within a 12-month period at 
 90.22  a community dental clinic or a dental training clinic located at 
 90.23  a Minnesota state college or university.  
 90.24     Subd. 2.  [DOCUMENTATION.] Upon completion of the required 
 90.25  hours, the retired dentist shall submit to the commissioner the 
 90.26  following: 
 90.27     (1) documentation of the service provided; 
 90.28     (2) the cost of malpractice insurance for the 12-month 
 90.29  period; and 
 90.30     (3) the cost of the license.  
 90.31     Subd. 3.  [REIMBURSEMENT.] Upon receipt of the information 
 90.32  described in subdivision 2, the commissioner shall provide 
 90.33  reimbursement to the retired dentist for the cost of malpractice 
 90.34  insurance for the previous 12-month period and the cost of the 
 90.35  license.  
 90.36     Sec. 16.  [256.959] [DENTAL PRACTICE DONATION PROGRAM.] 
 91.1      Subdivision 1.  [ESTABLISHMENT.] The commissioner of human 
 91.2   services shall establish a dental practice donation program that 
 91.3   coordinates the donation of a qualifying dental practice to a 
 91.4   qualified charitable organization and assists in locating a 
 91.5   dentist licensed under chapter 150A who wishes to maintain the 
 91.6   dental practice.  
 91.7      Subd. 2.  [QUALIFYING DENTAL PRACTICE.] To qualify for the 
 91.8   dental practice donation program, a dental practice must meet 
 91.9   the following requirements: 
 91.10     (1) the dental practice must be owned by the donating 
 91.11  dentist; 
 91.12     (2) the dental practice must be located in a designated 
 91.13  underserved area of the state as defined by the commissioner; 
 91.14  and 
 91.15     (3) the practice must be equipped with the basic dental 
 91.16  equipment necessary to maintain a dental practice as determined 
 91.17  by the commissioner.  
 91.18     Subd. 3.  [COORDINATION.] The commissioner shall establish 
 91.19  a procedure for dentists to donate their dental practices to a 
 91.20  qualified charitable organization.  The commissioner shall 
 91.21  authorize a practice for donation only if it meets the 
 91.22  requirements of subdivision 2 and there is a licensed dentist 
 91.23  who is interested in entering into an agreement as described in 
 91.24  subdivision 4.  Upon donation of the practice, the commissioner 
 91.25  shall provide the donating dentist with a statement verifying 
 91.26  that a donation of the practice was made to a qualifying 
 91.27  charitable organization for purposes of state and federal income 
 91.28  tax returns.  
 91.29     Subd. 4.  [DONATED DENTAL PRACTICE AGREEMENT.] (a) A 
 91.30  dentist accepting the donated practice must enter into an 
 91.31  agreement with the qualified charitable organization to maintain 
 91.32  the dental practice for a minimum of five years at the donated 
 91.33  practice site and to provide services to underserved populations 
 91.34  up to a preagreed percentage of patients served.  
 91.35     (b) The agreement must include the terms for the recovery 
 91.36  of the donated dental practice if the dentist accepting the 
 92.1   practice does not fulfill the service commitment required under 
 92.2   this subdivision.  
 92.3      (c) Any costs associated with operating the dental practice 
 92.4   during the service commitment time period are the financial 
 92.5   responsibility of the dentist accepting the practice. 
 92.6      Sec. 17.  Minnesota Statutes 2000, section 256.9657, 
 92.7   subdivision 2, is amended to read: 
 92.8      Subd. 2.  [HOSPITAL SURCHARGE.] (a) Effective October 1, 
 92.9   1992, each Minnesota hospital except facilities of the federal 
 92.10  Indian Health Service and regional treatment centers shall pay 
 92.11  to the medical assistance account a surcharge equal to 1.4 
 92.12  percent of net patient revenues excluding net Medicare revenues 
 92.13  reported by that provider to the health care cost information 
 92.14  system according to the schedule in subdivision 4.  
 92.15     (b) Effective July 1, 1994, the surcharge under paragraph 
 92.16  (a) is increased to 1.56 percent. 
 92.17     (c) Notwithstanding the Medicare cost finding and allowable 
 92.18  cost principles, the hospital surcharge is not an allowable cost 
 92.19  for purposes of rate setting under sections 256.9685 to 256.9695.
 92.20     Sec. 18.  Minnesota Statutes 2000, section 256.969, is 
 92.21  amended by adding a subdivision to read: 
 92.22     Subd. 26.  [GREATER MINNESOTA PAYMENT ADJUSTMENT AFTER JUNE 
 92.23  30, 2001.] (a) For admissions occurring after June 30, 2001, the 
 92.24  commissioner shall pay fee-for-service inpatient admissions for 
 92.25  the diagnosis-related groups specified in paragraph (b) at 
 92.26  hospitals located outside of the seven-county metropolitan area 
 92.27  at the higher of: 
 92.28     (1) the hospital's current payment rate for the diagnostic 
 92.29  category to which the diagnosis-related group belongs, exclusive 
 92.30  of disproportionate population adjustments received under 
 92.31  subdivision 9 and hospital payment adjustments received under 
 92.32  subdivision 23; or 
 92.33     (2) 90 percent of the average payment rate for that 
 92.34  diagnostic category for hospitals located within the 
 92.35  seven-county metropolitan area, exclusive of disproportionate 
 92.36  population adjustments received under subdivision 9 and hospital 
 93.1   payment adjustments received under subdivisions 20 and 23. 
 93.2      (b) The payment increases provided in paragraph (a) apply 
 93.3   to the following diagnosis-related groups, as they fall within 
 93.4   the diagnostic categories: 
 93.5      (1) 370 cesarean section with complicating diagnosis; 
 93.6      (2) 371 cesarean section without complicating diagnosis; 
 93.7      (3) 372 vaginal delivery with complicating diagnosis; 
 93.8      (4) 373 vaginal delivery without complicating diagnosis; 
 93.9      (5) 386 extreme immaturity and respiratory distress 
 93.10  syndrome, neonate; 
 93.11     (6) 388 full-term neonates with other problems; 
 93.12     (7) 390 prematurity without major problems; 
 93.13     (8) 391 normal newborn; 
 93.14     (9) 385 neonate, died or transferred to another acute care 
 93.15  facility; 
 93.16     (10) 425 acute adjustment reaction and psychosocial 
 93.17  dysfunction; 
 93.18     (11) 430 psychoses; 
 93.19     (12) 431 childhood mental disorders; and 
 93.20     (13) 164-167 appendectomy. 
 93.21     Sec. 19.  Minnesota Statutes 2000, section 256B.02, 
 93.22  subdivision 7, is amended to read: 
 93.23     Subd. 7.  "Vendor of medical care" means any person or 
 93.24  persons furnishing, within the scope of the vendor's respective 
 93.25  license, any or all of the following goods or services:  
 93.26  medical, surgical, hospital, optical, visual, dental and nursing 
 93.27  services; drugs and medical supplies; appliances; laboratory, 
 93.28  diagnostic, and therapeutic services; nursing home and 
 93.29  convalescent care; screening and health assessment services 
 93.30  provided by public health nurses as defined in section 145A.02, 
 93.31  subdivision 18; health care services provided at the residence 
 93.32  of the patient if the services are performed by a public health 
 93.33  nurse and the nurse indicates in a statement submitted under 
 93.34  oath that the services were actually provided; oral language 
 93.35  interpreter services for persons of limited English proficiency 
 93.36  when necessary to access health care; and such other medical 
 94.1   services or supplies provided or prescribed by persons 
 94.2   authorized by state law to give such services and supplies.  The 
 94.3   term includes, but is not limited to, directors and officers of 
 94.4   corporations or members of partnerships who, either individually 
 94.5   or jointly with another or others, have the legal control, 
 94.6   supervision, or responsibility of submitting claims for 
 94.7   reimbursement to the medical assistance program.  The term only 
 94.8   includes directors and officers of corporations who personally 
 94.9   receive a portion of the distributed assets upon liquidation or 
 94.10  dissolution, and their liability is limited to the portion of 
 94.11  the claim that bears the same proportion to the total claim as 
 94.12  their share of the distributed assets bears to the total 
 94.13  distributed assets. 
 94.14     Sec. 20.  Minnesota Statutes 2000, section 256B.04, is 
 94.15  amended by adding a subdivision to read: 
 94.16     Subd. 1b.  [ADMINISTRATIVE SERVICES.] Notwithstanding 
 94.17  subdivision 1, the commissioner may contract with federally 
 94.18  recognized Indian tribes with a reservation in Minnesota for the 
 94.19  provision of early and periodic screening, diagnosis, and 
 94.20  treatment administrative services for American Indian children, 
 94.21  in accordance with the Code of Federal Regulations, title 42, 
 94.22  section 441, subpart B, and Minnesota Rules, part 9505.1693, 
 94.23  when the tribe chooses to provide such services.  For purposes 
 94.24  of this subdivision, "American Indian" has the meaning given to 
 94.25  persons to whom services will be provided in the Code of Federal 
 94.26  Regulations, title 42, section 36.12.  Notwithstanding Minnesota 
 94.27  Rules, part 9505.1748, subpart 1, the commissioner, the local 
 94.28  agency, and the tribe may contract with any entity for the 
 94.29  provision of early and periodic screening, diagnosis, and 
 94.30  treatment administrative services. 
 94.31     Sec. 21.  Minnesota Statutes 2000, section 256B.055, 
 94.32  subdivision 3a, is amended to read: 
 94.33     Subd. 3a.  [MFIP-S FAMILIES; FAMILIES ELIGIBLE UNDER PRIOR 
 94.34  AFDC RULES.] (a) Beginning January 1, 1998, or on the date that 
 94.35  MFIP-S is implemented in counties, medical assistance may be 
 94.36  paid for a person receiving public assistance under the MFIP-S 
 95.1   program.  Beginning July 1, 2002, medical assistance may be paid 
 95.2   for a person who would have been eligible, but for excess income 
 95.3   or assets, under the state's AFDC plan in effect as of July 16, 
 95.4   1996, with the base AFDC standard increased according to section 
 95.5   256B.056, subdivision 4.  
 95.6      (b) Beginning January 1, 1998, July 1, 2002, medical 
 95.7   assistance may be paid for a person who would have been eligible 
 95.8   for public assistance under the income and resource assets 
 95.9   standards, or who would have been eligible but for excess income 
 95.10  or assets, under the state's AFDC plan in effect as of July 16, 
 95.11  1996, as required by the Personal Responsibility and Work 
 95.12  Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 
 95.13  Number 104-193 with the base AFDC rate increased according to 
 95.14  section 256B.056, subdivision 4. 
 95.15     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 95.16     Sec. 22.  Minnesota Statutes 2000, section 256B.056, 
 95.17  subdivision 1a, is amended to read: 
 95.18     Subd. 1a.  [INCOME AND ASSETS GENERALLY.] Unless 
 95.19  specifically required by state law or rule or federal law or 
 95.20  regulation, the methodologies used in counting income and assets 
 95.21  to determine eligibility for medical assistance for persons 
 95.22  whose eligibility category is based on blindness, disability, or 
 95.23  age of 65 or more years, the methodologies for the supplemental 
 95.24  security income program shall be used.  For children eligible 
 95.25  for home and community-based waiver services whose eligibility 
 95.26  for medical assistance is determined without regard to parental 
 95.27  income, or for children eligible under section 256B.055, 
 95.28  subdivision 12, child support payments, including any payments 
 95.29  made by an obligor in satisfaction of or in addition to a 
 95.30  temporary or permanent order for child support, and social 
 95.31  security payments, are not counted as income.  For families and 
 95.32  children, which includes all other eligibility categories, the 
 95.33  methodologies under the state's AFDC plan in effect as of July 
 95.34  16, 1996, as required by the Personal Responsibility and Work 
 95.35  Opportunity Reconciliation Act of 1996 (PRWORA), Public Law 
 95.36  Number 104-193, shall be used.  Effective upon federal approval, 
 96.1   in-kind contributions to, and payments made on behalf of, a 
 96.2   recipient, by an obligor, in satisfaction of or in addition to a 
 96.3   temporary or permanent order for child support or maintenance, 
 96.4   shall be considered income to the recipient.  For these 
 96.5   purposes, a "methodology" does not include an asset or income 
 96.6   standard, or accounting method, or method of determining 
 96.7   effective dates. 
 96.8      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
 96.9   or the date upon which federal rules published in the Federal 
 96.10  Register at 66FR2316 become effective, whichever is later. 
 96.11     Sec. 23.  Minnesota Statutes 2000, section 256B.056, 
 96.12  subdivision 4, is amended to read: 
 96.13     Subd. 4.  [INCOME.] To be eligible for medical assistance, 
 96.14  a person eligible under section 256B.055, subdivision 7, not 
 96.15  receiving supplemental security income program payments, and 
 96.16  families and children may have an income up to 133-1/3 percent 
 96.17  of the AFDC income standard in effect under the July 16, 1996, 
 96.18  AFDC state plan.  Effective July 1, 2000, the base AFDC standard 
 96.19  in effect on July 16, 1996, shall be increased by three percent. 
 96.20  Effective July 1, 2001, or the date upon which federal rules 
 96.21  published in the Federal Register at 66FR2316 become effective, 
 96.22  whichever is later, the income limit for a person eligible under 
 96.23  this subdivision shall be increased by 3.2 percent.  Effective 
 96.24  January 1, 2000, and each successive January, recipients of 
 96.25  supplemental security income may have an income up to the 
 96.26  supplemental security income standard in effect on that date.  
 96.27  In computing income to determine eligibility of persons who are 
 96.28  not residents of long-term care facilities, the commissioner 
 96.29  shall disregard increases in income as required by Public Law 
 96.30  Numbers 94-566, section 503; 99-272; and 99-509.  Veterans aid 
 96.31  and attendance benefits and Veterans Administration unusual 
 96.32  medical expense payments are considered income to the recipient. 
 96.33     Sec. 24.  Minnesota Statutes 2000, section 256B.056, 
 96.34  subdivision 4b, is amended to read: 
 96.35     Subd. 4b.  [INCOME VERIFICATION.] The local agency shall 
 96.36  not require a monthly income verification form for a recipient 
 97.1   who is a resident of a long-term care facility and who has 
 97.2   monthly earned income of $80 or less.  The commissioner or 
 97.3   county agency shall use electronic verification as the primary 
 97.4   method of income verification.  If there is a discrepancy in the 
 97.5   electronic verification, an individual may be required to submit 
 97.6   additional verification.  
 97.7      Sec. 25.  Minnesota Statutes 2000, section 256B.057, 
 97.8   subdivision 2, is amended to read: 
 97.9      Subd. 2.  [CHILDREN.] A child one two through five 18 years 
 97.10  of age in a family whose countable income is less no greater 
 97.11  than 133 185 percent of the federal poverty guidelines for the 
 97.12  same family size, is eligible for medical assistance.  A child 
 97.13  six through 18 years of age, who was born after September 30, 
 97.14  1983, in a family whose countable income is less than 100 
 97.15  percent of the federal poverty guidelines for the same family 
 97.16  size is eligible for medical assistance.  Countable income means 
 97.17  gross income minus child support paid according to a court order 
 97.18  and dependent care costs deducted from income under the state's 
 97.19  AFDC plan in effect as of July 16, 1996.  
 97.20     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 97.21     Sec. 26.  Minnesota Statutes 2000, section 256B.057, 
 97.22  subdivision 9, is amended to read: 
 97.23     Subd. 9.  [EMPLOYED PERSONS WITH DISABILITIES.] (a) Medical 
 97.24  assistance may be paid for a person who is employed and who: 
 97.25     (1) meets the definition of disabled under the supplemental 
 97.26  security income program; 
 97.27     (2) is at least 16 but less than 65 years of age; 
 97.28     (3) meets the asset limits in paragraph (b); and 
 97.29     (4) pays a premium, if required, under paragraph (c).  
 97.30  Any spousal income or assets shall be disregarded for purposes 
 97.31  of eligibility and premium determinations. 
 97.32     After the month of enrollment, a person enrolled in medical 
 97.33  assistance under this subdivision who is temporarily unable to 
 97.34  work and without receipt of earned income due to a medical 
 97.35  condition, as verified by a physician, or who has involuntarily 
 97.36  left employment may retain eligibility for up to four calendar 
 98.1   months. 
 98.2      (b) For purposes of determining eligibility under this 
 98.3   subdivision, a person's assets must not exceed $20,000, 
 98.4   excluding: 
 98.5      (1) all assets excluded under section 256B.056; 
 98.6      (2) retirement accounts, including individual accounts, 
 98.7   401(k) plans, 403(b) plans, Keogh plans, and pension plans; and 
 98.8      (3) medical expense accounts set up through the person's 
 98.9   employer. 
 98.10     (c) A person whose earned and unearned income is equal to 
 98.11  or greater than 200 than 100 percent of federal poverty 
 98.12  guidelines for the applicable family size must pay a premium to 
 98.13  be eligible for medical assistance under this subdivision.  The 
 98.14  premium shall be equal to ten percent of the person's gross 
 98.15  earned and unearned income above 200 percent of federal poverty 
 98.16  guidelines for the applicable family size up to the cost of 
 98.17  coverage based on the person's gross earned and unearned income 
 98.18  and the applicable family size using a sliding fee scale 
 98.19  established by the commissioner, which begins at one percent of 
 98.20  income at 100 percent of the federal poverty guidelines and 
 98.21  increases to 7.5 percent of income for those with incomes at or 
 98.22  above 300 percent of the federal poverty guidelines.  Annual 
 98.23  adjustments in the premium schedule based upon changes in the 
 98.24  federal poverty guidelines shall be effective for premiums due 
 98.25  in June of each year.  
 98.26     (d) A person's eligibility and premium shall be determined 
 98.27  by the local county agency.  Premiums must be paid to the 
 98.28  commissioner.  All premiums are dedicated to the commissioner. 
 98.29     (e) Any required premium shall be determined at application 
 98.30  and redetermined annually at recertification or when a change in 
 98.31  income or family size occurs. 
 98.32     (f) Premium payment is due upon notification from the 
 98.33  commissioner of the premium amount required.  Premiums may be 
 98.34  paid in installments at the discretion of the commissioner. 
 98.35     (g) Nonpayment of the premium shall result in denial or 
 98.36  termination of medical assistance unless the person demonstrates 
 99.1   good cause for nonpayment.  Good cause exists if the 
 99.2   requirements specified in Minnesota Rules, part 9506.0040, 
 99.3   subpart 7, items B to D, are met.  Nonpayment shall include 
 99.4   payment with a returned, refused, or dishonored instrument.  The 
 99.5   commissioner may require a guaranteed form of payment as the 
 99.6   only means to replace a returned, refused, or dishonored 
 99.7   instrument. 
 99.8      <b>[EFFECTIVE DATE.]</b> This section is effective September 1, 
 99.9   2001. 
 99.10     Sec. 27.  Minnesota Statutes 2000, section 256B.057, is 
 99.11  amended by adding a subdivision to read: 
 99.12     Subd. 10.  [CERTAIN PERSONS NEEDING TREATMENT FOR BREAST OR 
 99.13  CERVICAL CANCER.] (a) Medical assistance may be paid for a 
 99.14  person who: 
 99.15     (1) has been screened for breast or cervical cancer under 
 99.16  the centers for disease control and prevention's national breast 
 99.17  and cervical cancer early detection program established under 
 99.18  United States Code, title 42, sections 300k et seq.; 
 99.19     (2) according to the person's treating health professional, 
 99.20  needs treatment, including diagnostic services necessary to 
 99.21  determine the extent and proper course of treatment, for breast 
 99.22  or cervical cancer, including precancerous conditions and early 
 99.23  stage cancer; 
 99.24     (3) is under age 65; 
 99.25     (4) is not otherwise eligible for medical assistance under 
 99.26  United States Code, title 42, section 1396(a)(10)(A)(i); and 
 99.27     (5) is not otherwise covered under creditable coverage, as 
 99.28  defined under United States Code, title 42, section 300gg(c). 
 99.29     (b) Medical assistance provided for an eligible person 
 99.30  under this subdivision shall be limited to services provided 
 99.31  during the period that the person receives treatment for breast 
 99.32  or cervical cancer. 
 99.33     (c) A person meeting the criteria in paragraph (a) is 
 99.34  eligible for medical assistance without meeting the eligibility 
 99.35  criteria relating to income and assets in section 256B.056, 
 99.36  subdivisions 1a to 5b. 
100.1      Sec. 28.  Minnesota Statutes 2000, section 256B.057, is 
100.2   amended by adding a subdivision to read: 
100.3      Subd. 11.  [AGED, BLIND, OR DISABLED.] (a) To be eligible 
100.4   for medical assistance, a person eligible under section 
100.5   256B.055, subdivision 7, 7a, or 12, may have an income up to 100 
100.6   percent of the federal poverty guidelines. 
100.7      (b) 
100.8      In computing income to determine eligibility of persons who 
100.9   are not residents of long-term care facilities, the commissioner 
100.10  shall disregard increases in income as required by Public Law 
100.11  Numbers 94-566, section 503; 99-272; and 99-509.  Veterans aid 
100.12  and attendance benefits and Veterans Administration unusual 
100.13  medical expense payments are considered income to the recipient. 
100.14     Sec. 29.  Minnesota Statutes 2000, section 256B.061, is 
100.15  amended to read: 
100.16     256B.061 [ELIGIBILITY; RETROACTIVE EFFECT; RESTRICTIONS.] 
100.17     (a) If any individual has been determined to be eligible 
100.18  for medical assistance, it will be made available for care and 
100.19  services included under the plan and furnished in or after the 
100.20  third month before the month in which the individual made 
100.21  application for such assistance, if such individual was, or upon 
100.22  application would have been, eligible for medical assistance at 
100.23  the time the care and services were furnished.  The commissioner 
100.24  may limit, restrict, or suspend the eligibility of an individual 
100.25  for up to one year upon that individual's conviction of a 
100.26  criminal offense related to application for or receipt of 
100.27  medical assistance benefits. 
100.28     (b) On the basis of information provided on the completed 
100.29  application, an applicant who meets the following criteria shall 
100.30  be determined eligible beginning in the month of application: 
100.31     (1) whose gross income is less than 90 percent of the 
100.32  applicable income standard; 
100.33     (2) whose total liquid assets are less than 90 percent of 
100.34  the asset limit; 
100.35     (3) (2) does not reside in a long-term care facility; and 
100.36     (4) (3) meets all other eligibility requirements. 
101.1   The applicant must provide all required verifications within 30 
101.2   days' notice of the eligibility determination or eligibility 
101.3   shall be terminated. 
101.4      (c) Under this chapter and chapter 256D within the limits 
101.5   of the appropriation made available for this purpose, the 
101.6   commissioner shall develop and implement a pilot project 
101.7   establishing presumptive eligibility for children under age 19 
101.8   with family income at or below the medical assistance 
101.9   guidelines.  The commissioner shall select locations such as 
101.10  provider offices, hospitals, clinics, and schools where 
101.11  presumptive eligibility for medical assistance shall be 
101.12  determined on site by a trained staff person.  The commissioner 
101.13  shall expand presumptive eligibility effective July 1, 2002, by 
101.14  selecting additional locations.  The entity determining 
101.15  presumptive eligibility for a child must notify the parent or 
101.16  caretaker at the time of the determination and provide the 
101.17  parent or caretaker with an application form, and within five 
101.18  working days after the date of the presumptive eligibility 
101.19  determination must notify the commissioner.  The presumptive 
101.20  eligibility period ends on the earlier of the date a child is 
101.21  found to be eligible for medical assistance, or the last day of 
101.22  the month after the month of the presumptive eligibility 
101.23  determination if no application for medical assistance has been 
101.24  filed for that child.  
101.25     Sec. 30.  Minnesota Statutes 2000, section 256B.0625, is 
101.26  amended by adding a subdivision to read: 
101.27     Subd. 5a.  [AUTISM BEHAVIOR THERAPY CLINICAL SUPERVISION 
101.28  SERVICES.] (a) Medical assistance covers autism behavior therapy 
101.29  clinical supervision services.  Autism behavior therapy clinical 
101.30  supervision services shall be reimbursed at the same rate as 
101.31  services provided by a mental health professional. 
101.32     (b) Providers enrolled in medical assistance to provide 
101.33  this service or related autism behavior therapy services are not 
101.34  required to hold a contract with a county board, as specified in 
101.35  Minnesota Rules, part 9505.0324, subpart 2. 
101.36     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2003.
102.1      Sec. 31.  Minnesota Statutes 2000, section 256B.0625, 
102.2   subdivision 13, is amended to read: 
102.3      Subd. 13.  [DRUGS.] (a) Medical assistance covers drugs, 
102.4   except for fertility drugs when specifically used to enhance 
102.5   fertility, if prescribed by a licensed practitioner and 
102.6   dispensed by a licensed pharmacist, by a physician enrolled in 
102.7   the medical assistance program as a dispensing physician, or by 
102.8   a physician or a nurse practitioner employed by or under 
102.9   contract with a community health board as defined in section 
102.10  145A.02, subdivision 5, for the purposes of communicable disease 
102.11  control.  The commissioner, after receiving recommendations from 
102.12  professional medical associations and professional pharmacist 
102.13  associations, shall designate a formulary committee to advise 
102.14  the commissioner on the names of drugs for which payment is 
102.15  made, recommend a system for reimbursing providers on a set fee 
102.16  or charge basis rather than the present system, and develop 
102.17  methods encouraging use of generic drugs when they are less 
102.18  expensive and equally effective as trademark drugs.  The 
102.19  formulary committee shall consist of nine members, four of whom 
102.20  shall be physicians who are not employed by the department of 
102.21  human services, and a majority of whose practice is for persons 
102.22  paying privately or through health insurance, three of whom 
102.23  shall be pharmacists who are not employed by the department of 
102.24  human services, and a majority of whose practice is for persons 
102.25  paying privately or through health insurance, a consumer 
102.26  representative, and a nursing home representative.  Committee 
102.27  members shall serve three-year terms and shall serve without 
102.28  compensation.  Members may be reappointed once.  
102.29     (b) The commissioner shall establish a drug formulary.  Its 
102.30  establishment and publication shall not be subject to the 
102.31  requirements of the Administrative Procedure Act, but the 
102.32  formulary committee shall review and comment on the formulary 
102.33  contents.  The formulary committee shall review and recommend 
102.34  drugs which require prior authorization.  The formulary 
102.35  committee may recommend drugs for prior authorization directly 
102.36  to the commissioner, as long as opportunity for public input is 
103.1   provided.  Prior authorization may be requested by the 
103.2   commissioner based on medical and clinical criteria before 
103.3   certain drugs are eligible for payment.  Before a drug may be 
103.4   considered for prior authorization at the request of the 
103.5   commissioner:  
103.6      (1) the drug formulary committee must develop criteria to 
103.7   be used for identifying drugs; the development of these criteria 
103.8   is not subject to the requirements of chapter 14, but the 
103.9   formulary committee shall provide opportunity for public input 
103.10  in developing criteria; 
103.11     (2) the drug formulary committee must hold a public forum 
103.12  and receive public comment for an additional 15 days; and 
103.13     (3) the commissioner must provide information to the 
103.14  formulary committee on the impact that placing the drug on prior 
103.15  authorization will have on the quality of patient care and 
103.16  information regarding whether the drug is subject to clinical 
103.17  abuse or misuse.  Prior authorization may be required by the 
103.18  commissioner before certain formulary drugs are eligible for 
103.19  payment.  The formulary shall not include:  
103.20     (i) drugs or products for which there is no federal 
103.21  funding; 
103.22     (ii) over-the-counter drugs, except for antacids, 
103.23  acetaminophen, family planning products, aspirin, insulin, 
103.24  products for the treatment of lice, vitamins for adults with 
103.25  documented vitamin deficiencies, vitamins for children under the 
103.26  age of seven and pregnant or nursing women, and any other 
103.27  over-the-counter drug identified by the commissioner, in 
103.28  consultation with the drug formulary committee, as necessary, 
103.29  appropriate, and cost-effective for the treatment of certain 
103.30  specified chronic diseases, conditions or disorders, and this 
103.31  determination shall not be subject to the requirements of 
103.32  chapter 14; 
103.33     (iii) anorectics, except that medically necessary 
103.34  anorectics shall be covered for a recipient previously diagnosed 
103.35  as having pickwickian syndrome and currently diagnosed as having 
103.36  diabetes and being morbidly obese; 
104.1      (iv) drugs for which medical value has not been 
104.2   established; and 
104.3      (v) drugs from manufacturers who have not signed a rebate 
104.4   agreement with the Department of Health and Human Services 
104.5   pursuant to section 1927 of title XIX of the Social Security Act.
104.6      The commissioner shall publish conditions for prohibiting 
104.7   payment for specific drugs after considering the formulary 
104.8   committee's recommendations.  An honorarium of $100 per meeting 
104.9   and reimbursement for mileage shall be paid to each committee 
104.10  member in attendance.  
104.11     (c) The basis for determining the amount of payment shall 
104.12  be the lower of the actual acquisition costs of the drugs plus a 
104.13  fixed dispensing fee; the maximum allowable cost set by the 
104.14  federal government or by the commissioner plus the fixed 
104.15  dispensing fee; or the usual and customary price charged to the 
104.16  public.  The pharmacy dispensing fee shall be $3.65, except that 
104.17  the dispensing fee for intravenous solutions which must be 
104.18  compounded by the pharmacist shall be $8 per bag, $14 per bag 
104.19  for cancer chemotherapy products, and $30 per bag for total 
104.20  parenteral nutritional products dispensed in one liter 
104.21  quantities, or $44 per bag for total parenteral nutritional 
104.22  products dispensed in quantities greater than one liter.  Actual 
104.23  acquisition cost includes quantity and other special discounts 
104.24  except time and cash discounts.  The actual acquisition cost of 
104.25  a drug shall be estimated by the commissioner, at average 
104.26  wholesale price minus nine percent, except that where a drug has 
104.27  had its wholesale price reduced as a result of the actions of 
104.28  the National Association of Medicaid Fraud Control Units, the 
104.29  estimated actual acquisition cost shall be the reduced average 
104.30  wholesale price, without the nine percent deduction.  The 
104.31  maximum allowable cost of a multisource drug may be set by the 
104.32  commissioner and it shall be comparable to, but no higher than, 
104.33  the maximum amount paid by other third-party payors in this 
104.34  state who have maximum allowable cost programs.  The 
104.35  commissioner shall set maximum allowable costs for multisource 
104.36  drugs that are not on the federal upper limit list as described 
105.1   in United States Code, title 42, chapter 7, section 1396r-8(e), 
105.2   the Social Security Act, and Code of Federal Regulations, title 
105.3   42, part 447, section 447.332.  Establishment of the amount of 
105.4   payment for drugs shall not be subject to the requirements of 
105.5   the Administrative Procedure Act.  An additional dispensing fee 
105.6   of $.30 may be added to the dispensing fee paid to pharmacists 
105.7   for legend drug prescriptions dispensed to residents of 
105.8   long-term care facilities when a unit dose blister card system, 
105.9   approved by the department, is used.  Under this type of 
105.10  dispensing system, the pharmacist must dispense a 30-day supply 
105.11  of drug.  The National Drug Code (NDC) from the drug container 
105.12  used to fill the blister card must be identified on the claim to 
105.13  the department.  The unit dose blister card containing the drug 
105.14  must meet the packaging standards set forth in Minnesota Rules, 
105.15  part 6800.2700, that govern the return of unused drugs to the 
105.16  pharmacy for reuse.  The pharmacy provider will be required to 
105.17  credit the department for the actual acquisition cost of all 
105.18  unused drugs that are eligible for reuse.  Over-the-counter 
105.19  medications must be dispensed in the manufacturer's unopened 
105.20  package.  The commissioner may permit the drug clozapine to be 
105.21  dispensed in a quantity that is less than a 30-day supply.  
105.22  Whenever a generically equivalent product is available, payment 
105.23  shall be on the basis of the actual acquisition cost of the 
105.24  generic drug, unless the prescriber specifically indicates 
105.25  "dispense as written - brand necessary" on the prescription as 
105.26  required by section 151.21, subdivision 2. 
105.27     (d) For purposes of this subdivision, "multisource drugs" 
105.28  means covered outpatient drugs, excluding innovator multisource 
105.29  drugs for which there are two or more drug products, which: 
105.30     (1) are related as therapeutically equivalent under the 
105.31  Food and Drug Administration's most recent publication of 
105.32  "Approved Drug Products with Therapeutic Equivalence 
105.33  Evaluations"; 
105.34     (2) are pharmaceutically equivalent and bioequivalent as 
105.35  determined by the Food and Drug Administration; and 
105.36     (3) are sold or marketed in Minnesota. 
106.1   "Innovator multisource drug" means a multisource drug that was 
106.2   originally marketed under an original new drug application 
106.3   approved by the Food and Drug Administration. 
106.4      (e) The basis for determining the amount of payment for 
106.5   drugs administered in an outpatient setting shall be the lower 
106.6   of the usual and customary cost submitted by the provider; the 
106.7   average wholesale price minus five percent; or the maximum 
106.8   allowable cost set by the federal government under United States 
106.9   Code, title 42, chapter 7, section 1396r-8(e) and Code of 
106.10  Federal Regulations, title 42, section 447.332, or by the 
106.11  commissioner under paragraph (c). 
106.12     Sec. 32.  Minnesota Statutes 2000, section 256B.0625, 
106.13  subdivision 13a, is amended to read: 
106.14     Subd. 13a.  [DRUG UTILIZATION REVIEW BOARD.] A nine-member 
106.15  drug utilization review board is established.  The board is 
106.16  comprised of at least three but no more than four licensed 
106.17  physicians actively engaged in the practice of medicine in 
106.18  Minnesota; at least three licensed pharmacists actively engaged 
106.19  in the practice of pharmacy in Minnesota; and one consumer 
106.20  representative; the remainder to be made up of health care 
106.21  professionals who are licensed in their field and have 
106.22  recognized knowledge in the clinically appropriate prescribing, 
106.23  dispensing, and monitoring of covered outpatient drugs.  The 
106.24  board shall be staffed by an employee of the department who 
106.25  shall serve as an ex officio nonvoting member of the board.  The 
106.26  members of the board shall be appointed by the commissioner and 
106.27  shall serve three-year terms.  The members shall be selected 
106.28  from lists submitted by professional associations.  The 
106.29  commissioner shall appoint the initial members of the board for 
106.30  terms expiring as follows:  three members for terms expiring 
106.31  June 30, 1996; three members for terms expiring June 30, 1997; 
106.32  and three members for terms expiring June 30, 1998.  Members may 
106.33  be reappointed once.  The board shall annually elect a chair 
106.34  from among the members. 
106.35     The commissioner shall, with the advice of the board: 
106.36     (1) implement a medical assistance retrospective and 
107.1   prospective drug utilization review program as required by 
107.2   United States Code, title 42, section 1396r-8(g)(3); 
107.3      (2) develop and implement the predetermined criteria and 
107.4   practice parameters for appropriate prescribing to be used in 
107.5   retrospective and prospective drug utilization review; 
107.6      (3) develop, select, implement, and assess interventions 
107.7   for physicians, pharmacists, and patients that are educational 
107.8   and not punitive in nature; 
107.9      (4) establish a grievance and appeals process for 
107.10  physicians and pharmacists under this section; 
107.11     (5) publish and disseminate educational information to 
107.12  physicians and pharmacists regarding the board and the review 
107.13  program; 
107.14     (6) adopt and implement procedures designed to ensure the 
107.15  confidentiality of any information collected, stored, retrieved, 
107.16  assessed, or analyzed by the board, staff to the board, or 
107.17  contractors to the review program that identifies individual 
107.18  physicians, pharmacists, or recipients; 
107.19     (7) establish and implement an ongoing process to (i) 
107.20  receive public comment regarding drug utilization review 
107.21  criteria and standards, and (ii) consider the comments along 
107.22  with other scientific and clinical information in order to 
107.23  revise criteria and standards on a timely basis; and 
107.24     (8) adopt any rules necessary to carry out this section. 
107.25     The board may establish advisory committees.  The 
107.26  commissioner may contract with appropriate organizations to 
107.27  assist the board in carrying out the board's duties.  The 
107.28  commissioner may enter into contracts for services to develop 
107.29  and implement a retrospective and prospective review program. 
107.30     The board shall report to the commissioner annually on the 
107.31  date the Drug Utilization Review Annual Report is due to the 
107.32  Health Care Financing Administration.  This report is to cover 
107.33  the preceding federal fiscal year.  The commissioner shall make 
107.34  the report available to the public upon request.  The report 
107.35  must include information on the activities of the board and the 
107.36  program; the effectiveness of implemented interventions; 
108.1   administrative costs; and any fiscal impact resulting from the 
108.2   program.  An honorarium of $50 $100 per meeting and 
108.3   reimbursement for mileage shall be paid to each board member in 
108.4   attendance. 
108.5      Sec. 33.  Minnesota Statutes 2000, section 256B.0625, 
108.6   subdivision 17, is amended to read: 
108.7      Subd. 17.  [TRANSPORTATION COSTS.] (a) Medical assistance 
108.8   covers transportation costs incurred solely for obtaining 
108.9   emergency medical care or transportation costs incurred by 
108.10  nonambulatory persons in obtaining emergency or nonemergency 
108.11  medical care when paid directly to an ambulance company, common 
108.12  carrier, or other recognized providers of transportation 
108.13  services.  For the purpose of this subdivision, a person who is 
108.14  incapable of transport by taxicab or bus shall be considered to 
108.15  be nonambulatory. 
108.16     (b) Medical assistance covers special transportation, as 
108.17  defined in Minnesota Rules, part 9505.0315, subpart 1, item F, 
108.18  if the provider receives and maintains a current physician's 
108.19  order by the recipient's attending physician certifying that the 
108.20  recipient has a physical or mental impairment that would 
108.21  prohibit the recipient from safely accessing and using a bus, 
108.22  taxi, other commercial transportation, or private automobile.  
108.23  Special transportation includes driver-assisted service to 
108.24  eligible individuals.  Driver-assisted service includes 
108.25  passenger pickup at and return to the individual's residence or 
108.26  place of business, assistance with admittance of the individual 
108.27  to the medical facility, and assistance in passenger securement 
108.28  or in securing of wheelchairs or stretchers in the vehicle.  The 
108.29  commissioner shall establish maximum medical assistance 
108.30  reimbursement rates for special transportation services for 
108.31  persons who need a wheelchair lift accessible van or 
108.32  stretcher-equipped stretcher-accessible vehicle and for those 
108.33  who do not need a wheelchair lift accessible van or 
108.34  stretcher-equipped stretcher-accessible vehicle.  The average of 
108.35  these two rates per trip must not exceed $15 for the base rate 
108.36  and $1.20 $1.30 per mile.  Special transportation provided to 
109.1   nonambulatory persons who do not need a wheelchair lift 
109.2   accessible van or stretcher-equipped stretcher-accessible 
109.3   vehicle, may be reimbursed at a lower rate than special 
109.4   transportation provided to persons who need a wheelchair lift 
109.5   accessible van or stretcher-equipped stretcher-accessible 
109.6   vehicle.  
109.7      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001.  
109.8      Sec. 34.  Minnesota Statutes 2000, section 256B.0625, 
109.9   subdivision 17a, is amended to read: 
109.10     Subd. 17a.  [PAYMENT FOR AMBULANCE SERVICES.] Effective for 
109.11  services rendered on or after July 1, 1999 2001, medical 
109.12  assistance payments for ambulance services shall be increased by 
109.13  five percent paid at the Medicare reimbursement rate or at the 
109.14  medical assistance payment rate in effect on July 1, 2000, 
109.15  whichever is greater.  
109.16     Sec. 35.  Minnesota Statutes 2000, section 256B.0625, 
109.17  subdivision 18a, is amended to read: 
109.18     Subd. 18a.  [PAYMENT FOR MEALS AND LODGING ACCESS TO 
109.19  MEDICAL SERVICES.] (a) Medical assistance reimbursement for 
109.20  meals for persons traveling to receive medical care may not 
109.21  exceed $5.50 for breakfast, $6.50 for lunch, or $8 for dinner. 
109.22     (b) Medical assistance reimbursement for lodging for 
109.23  persons traveling to receive medical care may not exceed $50 per 
109.24  day unless prior authorized by the local agency. 
109.25     (c) Medical assistance direct mileage reimbursement to the 
109.26  eligible person or the eligible person's driver may not exceed 
109.27  20 cents per mile. 
109.28     (d) Medical assistance covers oral language interpreter 
109.29  services when provided by an enrolled health care provider 
109.30  during the course of providing a direct, person-to-person 
109.31  covered health care service to an enrolled recipient with 
109.32  limited English proficiency. 
109.33     Sec. 36.  Minnesota Statutes 2000, section 256B.0625, 
109.34  subdivision 30, is amended to read: 
109.35     Subd. 30.  [OTHER CLINIC SERVICES.] (a) Medical assistance 
109.36  covers rural health clinic services, federally qualified health 
110.1   center services, nonprofit community health clinic services, 
110.2   public health clinic services, and the services of a clinic 
110.3   meeting the criteria established in rule by the commissioner.  
110.4   Rural health clinic services and federally qualified health 
110.5   center services mean services defined in United States Code, 
110.6   title 42, section 1396d(a)(2)(B) and (C).  Payment for rural 
110.7   health clinic and federally qualified health center services 
110.8   shall be made according to applicable federal law and regulation.
110.9      (b) A federally qualified health center that is beginning 
110.10  initial operation shall submit an estimate of budgeted costs and 
110.11  visits for the initial reporting period in the form and detail 
110.12  required by the commissioner.  A federally qualified health 
110.13  center that is already in operation shall submit an initial 
110.14  report using actual costs and visits for the initial reporting 
110.15  period.  Within 90 days of the end of its reporting period, a 
110.16  federally qualified health center shall submit, in the form and 
110.17  detail required by the commissioner, a report of its operations, 
110.18  including allowable costs actually incurred for the period and 
110.19  the actual number of visits for services furnished during the 
110.20  period, and other information required by the commissioner.  
110.21  Federally qualified health centers that file Medicare cost 
110.22  reports shall provide the commissioner with a copy of the most 
110.23  recent Medicare cost report filed with the Medicare program 
110.24  intermediary for the reporting year which support the costs 
110.25  claimed on their cost report to the state. 
110.26     (c) In order to continue cost-based payment under the 
110.27  medical assistance program according to paragraphs (a) and (b), 
110.28  a federally qualified health center or rural health clinic must 
110.29  apply for designation as an essential community provider within 
110.30  six months of final adoption of rules by the department of 
110.31  health according to section 62Q.19, subdivision 7.  For those 
110.32  federally qualified health centers and rural health clinics that 
110.33  have applied for essential community provider status within the 
110.34  six-month time prescribed, medical assistance payments will 
110.35  continue to be made according to paragraphs (a) and (b) for the 
110.36  first three years after application.  For federally qualified 
111.1   health centers and rural health clinics that either do not apply 
111.2   within the time specified above or who have had essential 
111.3   community provider status for three years, medical assistance 
111.4   payments for health services provided by these entities shall be 
111.5   according to the same rates and conditions applicable to the 
111.6   same service provided by health care providers that are not 
111.7   federally qualified health centers or rural health clinics.  
111.8      (d) Effective July 1, 1999, the provisions of paragraph (c) 
111.9   requiring a federally qualified health center or a rural health 
111.10  clinic to make application for an essential community provider 
111.11  designation in order to have cost-based payments made according 
111.12  to paragraphs (a) and (b) no longer apply. 
111.13     (e) Effective January 1, 2000, payments made according to 
111.14  paragraphs (a) and (b) shall be limited to the cost phase-out 
111.15  schedule of the Balanced Budget Act of 1997. 
111.16     (f) Effective January 1, 2001, each federally qualified 
111.17  health center and rural health clinic may elect to be paid 
111.18  either under the prospective payment system established in 
111.19  United States Code, title 42, section 1396a, (a) or under an 
111.20  alternative payment methodology consistent with the requirements 
111.21  of United States Code, title 42, section 1392a, (a) and approved 
111.22  by the Health Care Financing Administration.  The alternative 
111.23  payment methodology shall be 100 percent of cost as determined 
111.24  according to Medicare cost principles. 
111.25     Sec. 37.  Minnesota Statutes 2000, section 256B.0625, 
111.26  subdivision 34, is amended to read: 
111.27     Subd. 34.  [INDIAN HEALTH SERVICES FACILITIES.] Medical 
111.28  assistance payments to facilities of the Indian health service 
111.29  and facilities operated by a tribe or tribal organization under 
111.30  funding authorized by United States Code, title 25, sections 
111.31  450f to 450n, or title III of the Indian Self-Determination and 
111.32  Education Assistance Act, Public Law Number 93-638, for 
111.33  enrollees who are eligible for federal financial participation, 
111.34  shall be at the option of the facility in accordance with the 
111.35  rate published by the United States Assistant Secretary for 
111.36  Health under the authority of United States Code, title 42, 
112.1   sections 248(a) and 249(b).  General assistance medical care 
112.2   payments to facilities of the Indian health services and 
112.3   facilities operated by a tribe or tribal organization for the 
112.4   provision of outpatient medical care services billed after June 
112.5   30, 1990, must be in accordance with the general assistance 
112.6   medical care rates paid for the same services when provided in a 
112.7   facility other than a facility of the Indian health service or a 
112.8   facility operated by a tribe or tribal 
112.9   organization.  MinnesotaCare payments for enrollees who are not 
112.10  eligible for federal financial participation at facilities of 
112.11  the Indian health service and facilities operated by a tribe or 
112.12  tribal organization for the provision of outpatient medical 
112.13  services must be in accordance with the medical assistance rates 
112.14  paid for the same services when provided in a facility other 
112.15  than a facility of the Indian health service or a facility 
112.16  operated by a tribe or tribal organization. 
112.17     <b>[EFFECTIVE DATE.]</b> This section shall be effective the day 
112.18  following final enactment.  
112.19     Sec. 38.  Minnesota Statutes 2000, section 256B.0625, is 
112.20  amended by adding a subdivision to read: 
112.21     Subd. 43.  [TARGETED CASE MANAGEMENT SERVICES.] Medical 
112.22  assistance covers case management services for vulnerable adults 
112.23  and persons with developmental disabilities not receiving home 
112.24  and community-based waiver services. 
112.25     Sec. 39.  Minnesota Statutes 2000, section 256B.0625, is 
112.26  amended by adding a subdivision to read: 
112.27     Subd. 44.  [TARGETED CASE MANAGEMENT SERVICE FOR CHILDREN 
112.28  UNDER THE AGE OF 19.] Medical assistance, subject to federal 
112.29  approval, covers targeted case management services in accordance 
112.30  with section 256B.0948 for children under the age of 19 who have 
112.31  had at least one previous birth. 
112.32     Sec. 40.  Minnesota Statutes 2000, section 256B.0635, 
112.33  subdivision 1, is amended to read: 
112.34     Subdivision 1.  [INCREASED EMPLOYMENT.] Beginning January 
112.35  1, 1998 (a) Until June 30, 2002, medical assistance may be paid 
112.36  for persons who received MFIP-S or medical assistance for 
113.1   families and children in at least three of six months preceding 
113.2   the month in which the person became ineligible for MFIP-S or 
113.3   medical assistance, if the ineligibility was due to an increase 
113.4   in hours of employment or employment income or due to the loss 
113.5   of an earned income disregard.  In addition, to receive 
113.6   continued assistance under this section, persons who received 
113.7   medical assistance for families and children but did not receive 
113.8   MFIP-S must have had income less than or equal to the assistance 
113.9   standard for their family size under the state's AFDC plan in 
113.10  effect as of July 16, 1996, as required by the Personal 
113.11  Responsibility and Work Opportunity Reconciliation Act of 1996 
113.12  (PRWORA), Public Law Number 104-193, increased according to 
113.13  section 256B.056, subdivision 4, at the time medical assistance 
113.14  eligibility began.  A person who is eligible for extended 
113.15  medical assistance is entitled to six 12 months of assistance 
113.16  without reapplication, unless the assistance unit ceases to 
113.17  include a dependent child.  For a person under 21 years of 
113.18  age, except medical assistance may not be discontinued for that 
113.19  dependent child under 21 years of age within the six-month 
113.20  12-month period of extended eligibility until it has been 
113.21  determined that the person is not otherwise eligible for medical 
113.22  assistance.  Medical assistance may be continued for an 
113.23  additional six months if the person meets all requirements for 
113.24  the additional six months, according to title XIX of the Social 
113.25  Security Act, as amended by section 303 of the Family Support 
113.26  Act of 1988, Public Law Number 100-485. 
113.27     (b) Beginning July 1, 2002, medical assistance for families 
113.28  and children may be paid for persons who were eligible under 
113.29  section 256B.055, subdivision 3a, paragraph (b), in at least 
113.30  three of six months preceding the month in which the person 
113.31  became ineligible under that section if the ineligibility was 
113.32  due to an increase in hours of employment or employment income 
113.33  or due to the loss of an earned income disregard.  A person who 
113.34  is eligible for extended medical assistance is entitled to 12 
113.35  months of assistance without reapplication, unless the 
113.36  assistance unit ceases to include a dependent child, except 
114.1   medical assistance may not be discontinued for that dependent 
114.2   child under 21 years of age within the 12-month period of 
114.3   extended eligibility until it has been determined that the 
114.4   person is not otherwise eligible for medical assistance.  
114.5      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
114.6      Sec. 41.  Minnesota Statutes 2000, section 256B.0635, 
114.7   subdivision 2, is amended to read: 
114.8      Subd. 2.  [INCREASED CHILD OR SPOUSAL SUPPORT.] Beginning 
114.9   January 1, 1998 (a) Until June 30, 2002, medical assistance may 
114.10  be paid for persons who received MFIP-S or medical assistance 
114.11  for families and children in at least three of the six months 
114.12  preceding the month in which the person became ineligible for 
114.13  MFIP-S or medical assistance, if the ineligibility was the 
114.14  result of the collection of child or spousal support under part 
114.15  D of title IV of the Social Security Act.  In addition, to 
114.16  receive continued assistance under this section, persons who 
114.17  received medical assistance for families and children but did 
114.18  not receive MFIP-S must have had income less than or equal to 
114.19  the assistance standard for their family size under the state's 
114.20  AFDC plan in effect as of July 16, 1996, as required by the 
114.21  Personal Responsibility and Work Opportunity Reconciliation Act 
114.22  of 1996 (PRWORA), Public Law Number 104-193 increased according 
114.23  to section 256B.056, subdivision 4, at the time medical 
114.24  assistance eligibility began.  A person who is eligible for 
114.25  extended medical assistance under this subdivision is entitled 
114.26  to four months of assistance without reapplication, unless the 
114.27  assistance unit ceases to include a dependent child.  For a 
114.28  person under 21 years of age, except medical assistance may not 
114.29  be discontinued for that dependent child under 21 years of age 
114.30  within the four-month period of extended eligibility until it 
114.31  has been determined that the person is not otherwise eligible 
114.32  for medical assistance. 
114.33     (b) Beginning July 1, 2002, medical assistance for families 
114.34  and children may be paid for persons who were eligible under 
114.35  section 256B.055, subdivision 3a, paragraph (b), in at least 
114.36  three of the six months preceding the month in which the person 
115.1   became ineligible under that section if the ineligibility was 
115.2   the result of the collection of child or spousal support under 
115.3   part D of title IV of the Social Security Act.  A person who is 
115.4   eligible for extended medical assistance under this subdivision 
115.5   is entitled to four months of assistance without reapplication, 
115.6   unless the assistance unit ceases to include a dependent child, 
115.7   except medical assistance may not be discontinued for that 
115.8   dependent child under 21 years of age within the four-month 
115.9   period of extended eligibility until it has been determined that 
115.10  the person is not otherwise eligible for medical assistance. 
115.11     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
115.12     Sec. 42.  [256B.0637] [PRESUMPTIVE ELIGIBILITY FOR CERTAIN 
115.13  PERSONS NEEDING TREATMENT FOR BREAST OR CERVICAL CANCER.] 
115.14     Medical assistance is available during a presumptive 
115.15  eligibility period for persons who meet the criteria in section 
115.16  256B.057, subdivision 10.  For purposes of this section, the 
115.17  presumptive eligibility period begins on the date on which an 
115.18  entity designated by the commissioner determines based on 
115.19  preliminary information that the person meets the criteria in 
115.20  section 256B.057, subdivision 10.  The presumptive eligibility 
115.21  period ends on the day on which a determination is made as to 
115.22  the person's eligibility, except that if an application is not 
115.23  submitted by the last day of the month following the month 
115.24  during which the determination based on preliminary information 
115.25  is made, the presumptive eligibility period ends on that last 
115.26  day of the month. 
115.27     Sec. 43.  Minnesota Statutes 2000, section 256B.0644, is 
115.28  amended to read: 
115.29     256B.0644 [PARTICIPATION REQUIRED FOR REIMBURSEMENT UNDER 
115.30  OTHER STATE HEALTH CARE PROGRAMS.] 
115.31     A vendor of medical care, as defined in section 256B.02, 
115.32  subdivision 7, and a health maintenance organization, as defined 
115.33  in chapter 62D, must participate as a provider or contractor in 
115.34  the medical assistance program, general assistance medical care 
115.35  program, and MinnesotaCare as a condition of participating as a 
115.36  provider in health insurance plans and programs or contractor 
116.1   for state employees established under section 43A.18, the public 
116.2   employees insurance program under section 43A.316, for health 
116.3   insurance plans offered to local statutory or home rule charter 
116.4   city, county, and school district employees, the workers' 
116.5   compensation system under section 176.135, and insurance plans 
116.6   provided through the Minnesota comprehensive health association 
116.7   under sections 62E.01 to 62E.19.  The limitations on insurance 
116.8   plans offered to local government employees shall not be 
116.9   applicable in geographic areas where provider participation is 
116.10  limited by managed care contracts with the department of human 
116.11  services.  For providers other than health maintenance 
116.12  organizations, participation in the medical assistance program 
116.13  means that (1) the provider accepts new medical assistance, 
116.14  general assistance medical care, and MinnesotaCare patients or 
116.15  (2) at least 20 percent of the provider's patients are covered 
116.16  by medical assistance, general assistance medical care, and 
116.17  MinnesotaCare as their primary source of coverage.  Patients 
116.18  seen on a volunteer basis by the provider at a location other 
116.19  than the provider's usual place of practice may be considered in 
116.20  meeting this participation requirement.  The commissioner shall 
116.21  establish participation requirements for health maintenance 
116.22  organizations.  The commissioner shall provide lists of 
116.23  participating medical assistance providers on a quarterly basis 
116.24  to the commissioner of employee relations, the commissioner of 
116.25  labor and industry, and the commissioner of commerce.  Each of 
116.26  the commissioners shall develop and implement procedures to 
116.27  exclude as participating providers in the program or programs 
116.28  under their jurisdiction those providers who do not participate 
116.29  in the medical assistance program.  The commissioner of employee 
116.30  relations shall implement this section through contracts with 
116.31  participating health and dental carriers. 
116.32     Sec. 44.  Minnesota Statutes 2000, section 256B.0913, 
116.33  subdivision 12, is amended to read: 
116.34     Subd. 12.  [CLIENT PREMIUMS.] (a) A premium is required for 
116.35  all 180-day eligible clients to help pay for the cost of 
116.36  participating in the program.  The amount of the premium for the 
117.1   alternative care client shall be determined as follows: 
117.2      (1) when the alternative care client's income less 
117.3   recurring and predictable medical expenses is greater than the 
117.4   medical assistance income standard but less than 150 percent of 
117.5   the federal poverty guideline, and total assets are less than 
117.6   $10,000, the fee is zero; 
117.7      (2) when the alternative care client's income less 
117.8   recurring and predictable medical expenses is greater than 150 
117.9   percent of the federal poverty guideline, and total assets are 
117.10  less than $10,000, the fee is 25 percent of the cost of 
117.11  alternative care services or the difference between 150 percent 
117.12  of the federal poverty guideline and the client's income less 
117.13  recurring and predictable medical expenses, whichever is less; 
117.14  and 
117.15     (3) when the alternative care client's total assets are 
117.16  greater than $10,000, the fee is 25 percent of the cost of 
117.17  alternative care services.  
117.18     For married persons, total assets are defined as the total 
117.19  marital assets less the estimated community spouse asset 
117.20  allowance, under section 256B.059, if applicable.  For married 
117.21  persons, total income is defined as the client's income less the 
117.22  monthly spousal allotment, under section 256B.058. 
117.23     All alternative care services except case management shall 
117.24  be included in the estimated costs for the purpose of 
117.25  determining 25 percent of the costs. 
117.26     The monthly premium shall be calculated based on the cost 
117.27  of the first full month of alternative care services and shall 
117.28  continue unaltered until the next reassessment is completed or 
117.29  at the end of 12 months, whichever comes first.  Premiums are 
117.30  due and payable each month alternative care services are 
117.31  received unless the actual cost of the services is less than the 
117.32  premium. 
117.33     (b) The fee shall be waived by the commissioner when: 
117.34     (1) a person who is residing in a nursing facility is 
117.35  receiving case management only; 
117.36     (2) a person is applying for medical assistance; 
118.1      (3) a married couple is requesting an asset assessment 
118.2   under the spousal impoverishment provisions; 
118.3      (4) a person is a medical assistance recipient, but has 
118.4   been approved for alternative care-funded assisted living 
118.5   services; 
118.6      (5) a person is found eligible for alternative care, but is 
118.7   not yet receiving alternative care services; or 
118.8      (6) a person's fee under paragraph (a) is less than $25. 
118.9      (c) The county agency must record in the state's receivable 
118.10  system the client's assessed premium amount or the reason the 
118.11  premium has been waived.  The commissioner will bill and collect 
118.12  the premium from the client and forward the amounts collected to 
118.13  the commissioner in the manner and at the times prescribed by 
118.14  the commissioner.  Money collected must be deposited in the 
118.15  general fund and is appropriated to the commissioner for the 
118.16  alternative care program.  The client must supply the county 
118.17  with the client's social security number at the time of 
118.18  application.  If a client fails or refuses to pay the premium 
118.19  due, The county shall supply the commissioner with the client's 
118.20  social security number and other information the commissioner 
118.21  requires to collect the premium from the client.  The 
118.22  commissioner shall collect unpaid premiums using the Revenue 
118.23  Recapture Act in chapter 270A and other methods available to the 
118.24  commissioner.  The commissioner may require counties to inform 
118.25  clients of the collection procedures that may be used by the 
118.26  state if a premium is not paid.  This paragraph does not apply 
118.27  to alternative care pilot projects authorized in Laws 1993, 
118.28  First Special Session chapter 1, article 5, section 133, if a 
118.29  county operating under the pilot project reports the following 
118.30  dollar amounts to the commissioner quarterly: 
118.31     (1) total premiums billed to clients; 
118.32     (2) total collections of premiums billed; and 
118.33     (3) balance of premiums owed by clients. 
118.34  If a county does not adhere to these reporting requirements, the 
118.35  commissioner may terminate the billing, collecting, and 
118.36  remitting portions of the pilot project and require the county 
119.1   involved to operate under the procedures set forth in this 
119.2   paragraph. 
119.3      (d) The commissioner shall begin to adopt emergency or 
119.4   permanent rules governing client premiums within 30 days after 
119.5   July 1, 1991, including criteria for determining when services 
119.6   to a client must be terminated due to failure to pay a premium.  
119.7      Sec. 45.  Minnesota Statutes 2000, section 256B.0913, 
119.8   subdivision 14, is amended to read: 
119.9      Subd. 14.  [REIMBURSEMENT AND RATE ADJUSTMENTS.] (a) 
119.10  Reimbursement for expenditures for the alternative care services 
119.11  as approved by the client's case manager shall be through the 
119.12  invoice processing procedures of the department's Medicaid 
119.13  Management Information System (MMIS).  To receive reimbursement, 
119.14  the county or vendor must submit invoices within 12 months 
119.15  following the date of service.  The county agency and its 
119.16  vendors under contract shall not be reimbursed for services 
119.17  which exceed the county allocation. 
119.18     (b) If a county collects less than 50 percent of the client 
119.19  premiums due under subdivision 12, the commissioner may withhold 
119.20  up to three percent of the county's final alternative care 
119.21  program allocation determined under subdivisions 10 and 11. 
119.22     (c) The county shall negotiate individual rates with 
119.23  vendors and may be reimbursed for actual costs up to the greater 
119.24  of the county's current approved rate or 60 percent of the 
119.25  maximum rate in fiscal year 1994 and 65 percent of the maximum 
119.26  rate in fiscal year 1995 for each alternative care service.  
119.27  Notwithstanding any other rule or statutory provision to the 
119.28  contrary, the commissioner shall not be authorized to increase 
119.29  rates by an annual inflation factor, unless so authorized by the 
119.30  legislature. 
119.31     (d) (c) On July 1, 1993, the commissioner shall increase 
119.32  the maximum rate for home delivered meals to $4.50 per meal. 
119.33     Sec. 46.  [256B.0924] [TARGETED CASE MANAGEMENT SERVICES 
119.34  FOR VULNERABLE ADULTS AND PERSONS WITH DEVELOPMENTAL 
119.35  DISABILITIES.] 
119.36     Subdivision 1.  [PURPOSE.] The state recognizes that 
120.1   targeted case management services can decrease the need for more 
120.2   costly services such as multiple emergency room visits or 
120.3   hospitalizations by linking eligible individuals with less 
120.4   costly services available in the community. 
120.5      Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
120.6   following terms have the meanings given: 
120.7      (a) "Targeted case management" means services which will 
120.8   assist medical assistance eligible persons to gain access to 
120.9   needed medical, social, educational, and other services.  
120.10  Targeted case management does not include therapy, treatment, 
120.11  legal, or outreach services. 
120.12     (b) "Targeted case management for adults" means activities 
120.13  that coordinate and link social and other services designed to 
120.14  help eligible persons gain access to needed protective services, 
120.15  social, health care, mental health, habilitative, educational, 
120.16  vocational, recreational, advocacy, legal, chemical, health, and 
120.17  other related services. 
120.18     Subd. 3.  [ELIGIBILITY.] Persons are eligible to receive 
120.19  targeted case management services under this section if the 
120.20  requirements in paragraphs (a) and (b) are met. 
120.21     (a) The person must be assessed and determined by the local 
120.22  county agency to: 
120.23     (1) be age 18 or older; 
120.24     (2) be receiving medical assistance; 
120.25     (3) have significant functional limitations; and 
120.26     (4) be in need of service coordination to attain or 
120.27  maintain living in an integrated community setting. 
120.28     (b) The person must be a vulnerable adult in need of adult 
120.29  protection as defined in section 626.5572, or is an adult with 
120.30  mental retardation as defined in section 252A.02, subdivision 2, 
120.31  or a related condition as defined in section 252.27, subdivision 
120.32  1a, and is not receiving home and community-based waiver 
120.33  services. 
120.34     Subd. 4.  [TARGETED CASE MANAGEMENT SERVICE 
120.35  ACTIVITIES.] (a) For persons with mental retardation or a 
120.36  related condition, targeted case management services must meet 
121.1   the provisions of section 256B.092. 
121.2      (b) For persons not eligible as a person with mental 
121.3   retardation or a related condition, targeted case management 
121.4   service activities include: 
121.5      (1) an assessment of the person's need for targeted case 
121.6   management services; 
121.7      (2) the development of a written personal service plan; 
121.8      (3) a regular review and revision of the written personal 
121.9   service plan with the recipient and the recipient's legal 
121.10  representative, and others as identified by the recipient, to 
121.11  ensure access to necessary services and supports identified in 
121.12  the plan; 
121.13     (4) effective communication with the recipient and the 
121.14  recipient's legal representative and others identified by the 
121.15  recipient; 
121.16     (5) coordination of referrals for needed services with 
121.17  qualified providers; 
121.18     (6) coordination and monitoring of the overall service 
121.19  delivery to ensure the quality and effectiveness of services; 
121.20     (7) assistance to the recipient and the recipient's legal 
121.21  representative to help make an informed choice of services; 
121.22     (8) advocating on behalf of the recipient when service 
121.23  barriers are encountered or referring the recipient and the 
121.24  recipient's legal representative to an independent advocate; 
121.25     (9) monitoring and evaluating services identified in the 
121.26  personal service plan to ensure personal outcomes are met and to 
121.27  ensure satisfaction with services and service delivery; 
121.28     (10) conducting face-to-face monitoring with the recipient 
121.29  at least twice a year; 
121.30     (11) completing and maintain necessary documentation that 
121.31  supports verifies the activities in this section; 
121.32     (12) coordinating with the medical assistance facility 
121.33  discharge planner in the 180-day period prior to the recipient's 
121.34  discharge into the community; and 
121.35     (13) a personal service plan developed and reviewed at 
121.36  least annually with the recipient and the recipient's legal 
122.1   representative.  The personal service plan must be revised when 
122.2   there is a change in the recipient's status.  The personal 
122.3   service plan must identify: 
122.4      (i) the desired personal short and long-term outcomes; 
122.5      (ii) the recipient's preferences for services and supports, 
122.6   including development of a person-centered plan if requested; 
122.7   and 
122.8      (iii) formal and informal services and supports based on 
122.9   areas of assessment, such as:  social, health, mental health, 
122.10  residence, family, educational and vocational, safety, legal, 
122.11  self-determination, financial, and chemical health as determined 
122.12  by the recipient and the recipient's legal representative and 
122.13  the recipient's support network. 
122.14     Subd. 5.  [PROVIDER STANDARDS.] County boards or providers 
122.15  who contract with the county are eligible to receive medical 
122.16  assistance reimbursement for adult targeted case management 
122.17  services.  To qualify as a provider of targeted case management 
122.18  services the vendor must: 
122.19     (1) have demonstrated the capacity and experience to 
122.20  provide the activities of case management services defined in 
122.21  subdivision 4; 
122.22     (2) be able to coordinate and link community resources 
122.23  needed by the recipient; 
122.24     (3) have the administrative capacity and experience to 
122.25  serve the eligible population in providing services and to 
122.26  ensure quality of services under state and federal requirements; 
122.27     (4) have a financial management system that provides 
122.28  accurate documentation of services and costs under state and 
122.29  federal requirements; 
122.30     (5) have the capacity to document and maintain individual 
122.31  case records complying with state and federal requirements; 
122.32     (6) coordinate with county social service agencies 
122.33  responsible for planning for community social services under 
122.34  chapters 256E and 256F; conducting adult protective 
122.35  investigations under section 626.557, and conducting prepetition 
122.36  screenings for commitments under section 253B.07; 
123.1      (7) coordinate with health care providers to ensure access 
123.2   to necessary health care services; 
123.3      (8) have a procedure in place that notifies the recipient 
123.4   and the recipient's legal representative of any conflict of 
123.5   interest if the contracted targeted case management service 
123.6   provider also provides the recipient's services and supports and 
123.7   provides information on all potential conflicts of interest and 
123.8   obtains the recipient's informed consent and provides the 
123.9   recipient with alternatives; and 
123.10     (9) have demonstrated the capacity to achieve the following 
123.11  performance outcomes:  access, quality, and consumer 
123.12  satisfaction. 
123.13     Subd. 6.  [PAYMENT FOR TARGETED CASE MANAGEMENT.] (a) 
123.14  Medical assistance and MinnesotaCare payment for targeted case 
123.15  management shall be made on a monthly basis.  In order to 
123.16  receive payment for an eligible adult, the provider must 
123.17  document at least one contact per month and not more than two 
123.18  consecutive months without a face-to-face contact with the adult 
123.19  or the adult's legal representative. 
123.20     (b) Payment for targeted case management provided by county 
123.21  staff under this subdivision shall be based on the monthly rate 
123.22  methodology under section 256B.094, subdivision 6, paragraph 
123.23  (b), calculated as one combined average rate together with adult 
123.24  mental health case management under section 256B.0625, 
123.25  subdivision 20.  Billing and payment must identify the 
123.26  recipient's primary population group to allow tracking of 
123.27  revenues. 
123.28     (c) Payment for targeted case management provided by 
123.29  county-contracted vendors shall be based on a monthly rate 
123.30  negotiated by the host county.  The negotiated rate must not 
123.31  exceed the rate charged by the vendor for the same service to 
123.32  other payers.  If the service is provided by a team of 
123.33  contracted vendors, the county may negotiate a team rate with a 
123.34  vendor who is a member of the team.  The team shall determine 
123.35  how to distribute the rate among its members.  No reimbursement 
123.36  received by contracted vendors shall be returned to the county, 
124.1   except to reimburse the county for advance funding provided by 
124.2   the county to the vendor. 
124.3      (d) If the service is provided by a team that includes 
124.4   contracted vendors and county staff, the costs for county staff 
124.5   participation on the team shall be included in the rate for 
124.6   county-provided services.  In this case, the contracted vendor 
124.7   and the county may each receive separate payment for services 
124.8   provided by each entity in the same month.  In order to prevent 
124.9   duplication of services, the county must document, in the 
124.10  recipient's file, the need for team targeted case management and 
124.11  a description of the different roles of the team members. 
124.12     (e) Notwithstanding section 256B.19, subdivision 1, the 
124.13  nonfederal share of costs for targeted case management shall be 
124.14  provided by the recipient's county of responsibility, as defined 
124.15  in sections 256G.01 to 256G.12, from sources other than federal 
124.16  funds or funds used to match other federal funds. 
124.17     (f) The commissioner may suspend, reduce, or terminate 
124.18  reimbursement to a provider that does not meet the reporting or 
124.19  other requirements of this section.  The county of 
124.20  responsibility, as defined in sections 256G.01 to 256G.12, is 
124.21  responsible for any federal disallowances.  The county may share 
124.22  this responsibility with its contracted vendors. 
124.23     (g) The commissioner shall set aside five percent of the 
124.24  federal funds received under this section for use in reimbursing 
124.25  the state for costs of developing and implementing this section. 
124.26     (h) Notwithstanding section 256.025, subdivision 2, 
124.27  payments to counties for targeted case management expenditures 
124.28  under this section shall only be made from federal earnings from 
124.29  services provided under this section.  Payments to contracted 
124.30  vendors shall include both the federal earnings and the county 
124.31  share. 
124.32     (i) Notwithstanding section 256B.041, county payments for 
124.33  the cost of case management services provided by county staff 
124.34  shall not be made to the state treasurer.  For the purposes of 
124.35  targeted case management services provided by county staff under 
124.36  this section, the centralized disbursement of payments to 
125.1   counties under section 256B.041 consists only of federal 
125.2   earnings from services provided under this section. 
125.3      (j) If the recipient is a resident of a nursing facility, 
125.4   intermediate care facility, or hospital, and the recipient's 
125.5   institutional care is paid by medical assistance, payment for 
125.6   targeted case management services under this subdivision is 
125.7   limited to the last 180 days of the recipient's residency in 
125.8   that facility and may not exceed more than six months in a 
125.9   calendar year. 
125.10     (k) Payment for targeted case management services under 
125.11  this subdivision shall not duplicate payments made under other 
125.12  program authorities for the same purpose. 
125.13     (l) Any growth in targeted case management services and 
125.14  cost increases under this section shall be the responsibility of 
125.15  the counties. 
125.16     Subd. 7.  [IMPLEMENTATION AND EVALUATION.] The commissioner 
125.17  of human services in consultation with county boards shall 
125.18  establish a program to accomplish the provisions of subdivisions 
125.19  1 to 6.  The commissioner in consultation with county boards 
125.20  shall establish performance measures to evaluate the 
125.21  effectiveness of the targeted case management services.  If a 
125.22  county fails to meet agreed upon performance measures, the 
125.23  commissioner may authorize contracted providers other than the 
125.24  county.  Providers contracted by the commissioner shall also be 
125.25  subject to the standards in subdivision 6. 
125.26     Sec. 47.  [256B.0948] [TARGETED CASE MANAGEMENT SERVICES 
125.27  FOR CHILDREN UNDER THE AGE OF 19.] 
125.28     Subdivision 1.  [ELIGIBILITY.] An eligible recipient must: 
125.29     (1) be under the age of 19; 
125.30     (2) be enrolled in medical assistance or MinnesotaCare; 
125.31     (3) have had at least one previous birth; and 
125.32     (4) not receiving any other form of targeted case 
125.33  management or case management through home and community-based 
125.34  waiver services.  
125.35     Subd. 2.  [SCOPE.] "Targeted case management services" 
125.36  means the coordination or implementation of social, health, 
126.1   educational, counseling, or other services designed to ensure 
126.2   continued social support to the recipient to prevent or delay a 
126.3   subsequent pregnancy.  
126.4      Subd. 3.  [ELIGIBLE SERVICES.] (a) Case management services 
126.5   include: 
126.6      (1) assessing the recipient's need for medical, social, 
126.7   educational, and other related services; 
126.8      (2) coordinating health, social, educational, and 
126.9   vocational needs with community-based services and programs; 
126.10     (3) providing counseling services, including mentoring, 
126.11  academic support, after-school enrichment, and healthy lifestyle 
126.12  practices; 
126.13     (4) monitoring the needs of the recipient on a regular 
126.14  basis to ensure continued support; and 
126.15     (5) promoting positive parenting. 
126.16     (b) These services shall be provided to the recipient on a 
126.17  one-to-one basis, in the recipient's home, community setting, or 
126.18  in groups.  
126.19     (c) Payment shall be made on a monthly basis.  In order to 
126.20  receive payment, a provider must document at least a 
126.21  face-to-face contact with the recipient.  
126.22     Subd. 4.  [INDIVIDUAL SUPPORT PLAN.] Providers must develop 
126.23  and implement an individual support plan for each recipient.  
126.24  The plan must include concrete, measurable goals to be achieved 
126.25  and specific objectives directed toward the achievement of each 
126.26  goal.  The plan must indicate how collaboration with other 
126.27  services will occur.  
126.28     Subd. 5.  [TARGET POPULATION.] The commissioner shall 
126.29  contract with qualified case managers to provide targeted case 
126.30  management services.  The contract will further define the 
126.31  target population, covered case management services, payment 
126.32  rates, and provider qualifications to ensure that annual 
126.33  spending, including related administrative costs for the 
126.34  nonfederal share of the cost is within the amount appropriated 
126.35  for this purpose.  
126.36     <b>[EFFECTIVE DATE.]</b> This section is effective on January 1, 
127.1   2002, or upon federal approval, whichever is later. 
127.2      Sec. 48.  [256B.195] [ADDITIONAL INTERGOVERNMENTAL 
127.3   TRANSFERS; HOSPITAL PAYMENTS.] 
127.4      Subdivision 1.  [FEDERAL APPROVAL REQUIRED.] Section 
127.5   256.969, subdivision 26, and this section are contingent on 
127.6   federal approval of the intergovernmental transfers and payments 
127.7   to safety net hospitals authorized under this section. 
127.8      Subd. 2.  [PAYMENTS FROM GOVERNMENTAL HOSPITALS.] In 
127.9   addition to any payment required under section 256B.19, 
127.10  effective July 15, 2001, the following government entities shall 
127.11  make the payments indicated before noon on the 15th of each 
127.12  month: 
127.13     (1) Hennepin county, $1,883,000; and 
127.14     (2) Ramsey county, $696,450. 
127.15  These sums shall be part of the designated governmental unit's 
127.16  portion of the nonfederal share of medical assistance costs. 
127.17     Subd. 3.  [PAYMENTS TO CERTAIN SAFETY NET HOSPITALS.] (a) 
127.18  Effective July 15, 2001, the commissioner shall make the 
127.19  following payments to the hospitals indicated after noon on the 
127.20  15th of each month: 
127.21     (1) to Hennepin county medical center, $3,218,000, of which 
127.22  $1,883,000 is to offset the amount of the transfer under 
127.23  subdivision 2 and $1,335,000 is to increase payments for medical 
127.24  assistance admissions; and 
127.25     (2) to Regions hospital, $1,190,250, of which $696,450 is 
127.26  to offset the amount of the transfer under subdivision 2 and 
127.27  $493,800 is to increase payments for medical assistance 
127.28  admissions. 
127.29     (b) This section and section 256.969, subdivision 26, shall 
127.30  apply to fee-for-service payments only and shall not increase 
127.31  capitation payments or payments made based on average rates. 
127.32     (c) Medical assistance rate or payment changes required to 
127.33  obtain federal financial participation under section 62J.692, 
127.34  subdivision 8, shall precede the determination of 
127.35  intergovernmental transfer amounts determined in this 
127.36  subdivision.  Participation in the intergovernmental transfer 
128.1   program shall not result in the offset of any health care 
128.2   provider's receipt of medical assistance payment increases other 
128.3   than limits on rates and payments. 
128.4      Subd. 4.  [ADJUSTMENTS PERMITTED.] (a) The commissioner may 
128.5   adjust the intergovernmental transfers under subdivision 2 and 
128.6   the hospital payments under subdivision 3, after consultation 
128.7   with the nonstate government entities named in this section, 
128.8   based on the commissioner's determination of Medicare upper 
128.9   payment limits and hospital-specific limitations on 
128.10  disproportionate share payments. 
128.11     (b) The ratio of medical assistance payments specified in 
128.12  subdivision 3 to the intergovernmental transfers specified in 
128.13  subdivision 2 shall not be reduced below 170 percent unless a 
128.14  further reduction is required to preserve state budget 
128.15  neutrality. 
128.16     (c) If the federal rules regarding the establishment of the 
128.17  150 percent upper payment limit for certain nonstate public 
128.18  hospitals are rescinded, or if the upper payment limit is 
128.19  otherwise reduced to 100 percent, the ratio of intergovernmental 
128.20  transfers and medical assistance payments among the 
128.21  participating entities named in this section shall be adjusted 
128.22  based on the proportion of medical assistance inpatient hospital 
128.23  admissions from the third previous rate year provided by each 
128.24  participating hospital, and paragraph (b) shall not apply. 
128.25     Subd. 5.  [INCLUSION OF FAIRVIEW UNIVERSITY MEDICAL 
128.26  CENTER.] Upon federal approval of the inclusion of Fairview 
128.27  university medical center in the nonstate government category, 
128.28  the commissioner shall establish an intergovernmental transfer 
128.29  with the University of Minnesota in an amount determined by the 
128.30  commissioner based on the increase in the Medicare upper payment 
128.31  limit due solely to the inclusion of Fairview university medical 
128.32  center as a nonstate government hospital and the amount 
128.33  available under the hospital specific disproportionate share 
128.34  limit.  All of the proceeds of the transfer shall be used to 
128.35  increase payments to Fairview university medical center for 
128.36  medical assistance admissions.  From this payment, Fairview 
129.1   university medical center shall pay to the University of 
129.2   Minnesota the cost of the transfer on the same day the payment 
129.3   is received. 
129.4      Sec. 49.  [256B.53] [DENTAL ACCESS GRANTS.] 
129.5      (a) The commissioner shall award grants to community 
129.6   clinics or other nonprofit community organizations, political 
129.7   subdivisions, professional associations, or other organizations 
129.8   that demonstrate the ability to provide dental services 
129.9   effectively to public program recipients.  Grants may be used to 
129.10  fund the costs related to coordinating access for recipients, 
129.11  developing and implementing patient care criteria, upgrading or 
129.12  establishing new facilities, acquiring furnishings or equipment, 
129.13  recruiting new providers, or other development costs that will 
129.14  improve access to dental care in a region.  
129.15     (b) In awarding grants, the commissioner shall give 
129.16  priority to applicants that plan to serve areas of the state in 
129.17  which the number of dental providers is not currently sufficient 
129.18  to meet the needs of recipients of public programs or uninsured 
129.19  individuals.  The commissioner shall consider the following in 
129.20  awarding the grants:  
129.21     (1) potential to successfully increase access to an 
129.22  underserved population; 
129.23     (2) the long-term viability of the project to improve 
129.24  access beyond the period of initial funding; 
129.25     (3) the efficiency in the use of the funding; and 
129.26     (4) the experience of the applicants in providing services 
129.27  to the target population. 
129.28     (c) The commissioner shall consider grants for the 
129.29  following: 
129.30     (1) implementation of new programs or continued expansion 
129.31  of current access programs that have demonstrated success in 
129.32  providing dental services in underserved areas; 
129.33     (2) a program for mobile or other types of outreach dental 
129.34  clinics in underserved geographic areas; 
129.35     (3) a program for school-based dental clinics in schools 
129.36  with high numbers of children receiving medical assistance; 
130.1      (4) a program testing new models of care that are sensitive 
130.2   to the cultural needs of the recipients; 
130.3      (5) a program creating new educational campaigns that 
130.4   inform individuals of the importance of good oral health and the 
130.5   link between dental disease and overall health status; 
130.6      (6) a program that organizes a network of volunteer 
130.7   dentists to provide dental services to public program recipients 
130.8   or uninsured individuals; and 
130.9      (7) a program that tests new delivery models by creating 
130.10  partnerships between local providers and county public health 
130.11  agencies.  
130.12     (d) The commissioner shall evaluate the effects of the 
130.13  dental access initiatives funded through the dental access 
130.14  grants and submit a report to the legislature by January 15, 
130.15  2003.  
130.16     Sec. 50.  [256B.55] [DENTAL ACCESS ADVISORY COMMITTEE.] 
130.17     Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
130.18  establish a dental access advisory committee to monitor the 
130.19  purchasing, administration, and coverage of dental care services 
130.20  for the public health care programs to ensure dental care access 
130.21  and quality for public program recipients.  
130.22     Subd. 2.  [MEMBERSHIP.] (a) The membership of the advisory 
130.23  committee shall include, but is not limited to, representatives 
130.24  of dentists, including a dentist practicing in the seven-county 
130.25  metropolitan area and a dentist practicing outside the 
130.26  seven-county metropolitan area; oral surgeons; pediatric 
130.27  dentists; dental hygienists; community clinics; client advocacy 
130.28  groups; public health; health service plans; the University of 
130.29  Minnesota school of dentistry and the department of pediatrics; 
130.30  and the commissioner of health.  
130.31     (b) The advisory committee is governed by section 15.059 
130.32  for membership terms and removal of members.  
130.33     Subd. 3.  [DUTIES.] The advisory committee shall provide 
130.34  recommendations on the following: 
130.35     (1) how to reduce the administrative burden governing 
130.36  dental care coverage policies in order to promote administrative 
131.1   simplification, including prior authorization, coverage limits, 
131.2   and co-payment collections; 
131.3      (2) developing and implementing an action plan to improve 
131.4   the oral health of children and persons with special needs in 
131.5   the state; 
131.6      (3) exploring alternative ways of purchasing and improving 
131.7   access to dental services; 
131.8      (4) developing ways to foster greater responsibility among 
131.9   health care program recipients in seeking and obtaining dental 
131.10  care, including initiatives to keep dental appointments and 
131.11  comply with dental care plans; 
131.12     (5) exploring innovative ways for dental providers to 
131.13  schedule public program patients in order to reduce or minimize 
131.14  the effect of appointment no shows; 
131.15     (6) exploring ways to meet the barriers that may be present 
131.16  in providing dental services to health care program recipients 
131.17  such as language, culture, disability, and lack of 
131.18  transportation; and 
131.19     (7) exploring the possibility of pediatricians, family 
131.20  physicians, and nurse practitioners providing basic oral health 
131.21  screenings and basic preventive dental services.  
131.22     Subd. 4.  [REPORT.] The commissioner shall submit a report 
131.23  by February 1, 2002, and by February 1, 2003, summarizing the 
131.24  activities and recommendations of the advisory committee. 
131.25     Subd. 5.  [SUNSET.] Notwithstanding section 15.059, 
131.26  subdivision 5, this section expires June 30, 2003.  
131.27     Sec. 51.  Minnesota Statutes 2000, section 256B.69, 
131.28  subdivision 4, is amended to read: 
131.29     Subd. 4.  [LIMITATION OF CHOICE.] (a) The commissioner 
131.30  shall develop criteria to determine when limitation of choice 
131.31  may be implemented in the experimental counties.  The criteria 
131.32  shall ensure that all eligible individuals in the county have 
131.33  continuing access to the full range of medical assistance 
131.34  services as specified in subdivision 6.  
131.35     (b) The commissioner shall exempt the following persons 
131.36  from participation in the project, in addition to those who do 
132.1   not meet the criteria for limitation of choice:  
132.2      (1) persons eligible for medical assistance according to 
132.3   section 256B.055, subdivision 1; 
132.4      (2) persons eligible for medical assistance due to 
132.5   blindness or disability as determined by the social security 
132.6   administration or the state medical review team, unless:  
132.7      (i) they are 65 years of age or older,; or 
132.8      (ii) they reside in Itasca county or they reside in a 
132.9   county in which the commissioner conducts a pilot project under 
132.10  a waiver granted pursuant to section 1115 of the Social Security 
132.11  Act; 
132.12     (3) recipients who currently have private coverage through 
132.13  a health maintenance organization; 
132.14     (4) recipients who are eligible for medical assistance by 
132.15  spending down excess income for medical expenses other than the 
132.16  nursing facility per diem expense; 
132.17     (5) recipients who receive benefits under the Refugee 
132.18  Assistance Program, established under United States Code, title 
132.19  8, section 1522(e); 
132.20     (6) children who are both determined to be severely 
132.21  emotionally disturbed and receiving case management services 
132.22  according to section 256B.0625, subdivision 20; and 
132.23     (7) adults who are both determined to be seriously and 
132.24  persistently mentally ill and received case management services 
132.25  according to section 256B.0625, subdivision 20; and 
132.26     (8) persons eligible for medical assistance according to 
132.27  section 256B.057, subdivision 10.  
132.28  Children under age 21 who are in foster placement may enroll in 
132.29  the project on an elective basis.  Individuals excluded under 
132.30  clauses (6) and (7) may choose to enroll on an elective basis.  
132.31     (c) When a child enrolled with a demonstration provider has 
132.32  been identified as receiving mental health services in an 
132.33  alternative school, the alternative school shall notify the 
132.34  commissioner and the child's county of financial 
132.35  responsibility.  The commissioner, in coordination with the 
132.36  county, shall determine whether the child qualifies under 
133.1   paragraph (b) for exclusion from participation in the 
133.2   demonstration project.  If the child qualifies, the county shall 
133.3   contact the child's parent or guardian and offer the option for 
133.4   the child to be excluded from the demonstration project. 
133.5      (d) The commissioner may allow persons with a one-month 
133.6   spenddown who are otherwise eligible to enroll to voluntarily 
133.7   enroll or remain enrolled, if they elect to prepay their monthly 
133.8   spenddown to the state.  
133.9      (e) Beginning on or after July 1, 1997, The commissioner 
133.10  may require those individuals to enroll in the prepaid medical 
133.11  assistance program who otherwise would have been excluded 
133.12  under paragraph (b), clauses (1) and, (3), and (8), and under 
133.13  Minnesota Rules, part 9500.1452, subpart 2, items H, K, and L.  
133.14     (f) Before limitation of choice is implemented, eligible 
133.15  individuals shall be notified and after notification, shall be 
133.16  allowed to choose only among demonstration providers.  The 
133.17  commissioner may assign an individual with private coverage 
133.18  through a health maintenance organization, to the same health 
133.19  maintenance organization for medical assistance coverage, if the 
133.20  health maintenance organization is under contract for medical 
133.21  assistance in the individual's county of residence.  After 
133.22  initially choosing a provider, the recipient is allowed to 
133.23  change that choice only at specified times as allowed by the 
133.24  commissioner.  If a demonstration provider ends participation in 
133.25  the project for any reason, a recipient enrolled with that 
133.26  provider must select a new provider but may change providers 
133.27  without cause once more within the first 60 days after 
133.28  enrollment with the second provider. 
133.29     <b>[EFFECTIVE DATE.]</b> Paragraph (c) of this section is 
133.30  effective the day following final enactment. 
133.31     Sec. 52.  Minnesota Statutes 2000, section 256B.69, 
133.32  subdivision 5c, is amended to read: 
133.33     Subd. 5c.  [MEDICAL EDUCATION AND RESEARCH FUND.] (a) 
133.34  Beginning in January 1999 and each year thereafter: 
133.35     (1) the commissioner of human services shall transfer an 
133.36  amount equal to the reduction in the prepaid medical assistance 
134.1   and prepaid general assistance medical care payments resulting 
134.2   from clause (2), excluding nursing facility and elderly waiver 
134.3   payments and demonstration projects operating under subdivision 
134.4   23, and an amount totaling the amount identified in clauses (3) 
134.5   and (4) to the medical education and research fund established 
134.6   under section 62J.692; 
134.7      (2) until January 1, 2002, the county medical assistance 
134.8   and general assistance medical care capitation base rate prior 
134.9   to plan specific adjustments and after the regional rate 
134.10  adjustments under section 256B.69, subdivision 5b, shall be 
134.11  reduced 6.3 percent for Hennepin county, two percent for the 
134.12  remaining metropolitan counties, and no reduction for 
134.13  nonmetropolitan Minnesota counties; and after January 1, 2002, 
134.14  the county medical assistance and general assistance medical 
134.15  care capitation base rate prior to plan specific adjustments 
134.16  shall be reduced 6.3 percent for Hennepin county, two percent 
134.17  for the remaining metropolitan counties, and 1.6 percent for 
134.18  nonmetropolitan Minnesota counties; and 
134.19     (3) effective July 1, 2001, the amount transferred under 
134.20  section 62J.694, subdivision 2, paragraph (d), to increase the 
134.21  capitation rates plus any federal matching funds; 
134.22     (4) effective July 1, 2001, $600,000 from the capitation 
134.23  rates paid under this section plus any federal matching funds on 
134.24  this amount; and 
134.25     (5) the amount calculated under clause (1) shall not be 
134.26  adjusted for subsequent changes to the capitation payments for 
134.27  periods already paid.  
134.28     (b) This subdivision shall be effective upon approval of a 
134.29  federal waiver which allows federal financial participation in 
134.30  the medical education and research fund. 
134.31     Sec. 53.  Minnesota Statutes 2000, section 256B.69, is 
134.32  amended by adding a subdivision to read: 
134.33     Subd. 6c.  [DENTAL SERVICES DEMONSTRATION PROJECT.] The 
134.34  commissioner shall establish a dental services demonstration 
134.35  project in Crow Wing, Todd, Morrison, Wadena, and Cass counties 
134.36  for provision of dental services to medical assistance, general 
135.1   assistance medical care, and MinnesotaCare recipients.  The 
135.2   commissioner may contract on a prospective per capita payment 
135.3   basis for these dental services with an organization licensed 
135.4   under chapter 62C, 62D, or 62N in accordance with section 
135.5   256B.037 or may establish and administer a fee-for-service 
135.6   system for the reimbursement of dental services.  
135.7      Sec. 54.  Minnesota Statutes 2000, section 256B.69, 
135.8   subdivision 23, is amended to read: 
135.9      Subd. 23.  [ALTERNATIVE INTEGRATED LONG-TERM CARE SERVICES; 
135.10  ELDERLY AND DISABLED PERSONS.] (a) The commissioner may 
135.11  implement demonstration projects to create alternative 
135.12  integrated delivery systems for acute and long-term care 
135.13  services to elderly persons and persons with disabilities as 
135.14  defined in section 256B.77, subdivision 7a, that provide 
135.15  increased coordination, improve access to quality services, and 
135.16  mitigate future cost increases.  The commissioner may seek 
135.17  federal authority to combine Medicare and Medicaid capitation 
135.18  payments for the purpose of such demonstrations.  Medicare funds 
135.19  and services shall be administered according to the terms and 
135.20  conditions of the federal waiver and demonstration provisions.  
135.21  For the purpose of administering medical assistance funds, 
135.22  demonstrations under this subdivision are subject to 
135.23  subdivisions 1 to 22.  The provisions of Minnesota Rules, parts 
135.24  9500.1450 to 9500.1464, apply to these demonstrations, with the 
135.25  exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, 
135.26  subpart 1, items B and C, which do not apply to persons 
135.27  enrolling in demonstrations under this section.  An initial open 
135.28  enrollment period may be provided.  Persons who disenroll from 
135.29  demonstrations under this subdivision remain subject to 
135.30  Minnesota Rules, parts 9500.1450 to 9500.1464.  When a person is 
135.31  enrolled in a health plan under these demonstrations and the 
135.32  health plan's participation is subsequently terminated for any 
135.33  reason, the person shall be provided an opportunity to select a 
135.34  new health plan and shall have the right to change health plans 
135.35  within the first 60 days of enrollment in the second health 
135.36  plan.  Persons required to participate in health plans under 
136.1   this section who fail to make a choice of health plan shall not 
136.2   be randomly assigned to health plans under these demonstrations. 
136.3   Notwithstanding section 256L.12, subdivision 5, and Minnesota 
136.4   Rules, part 9505.5220, subpart 1, item A, if adopted, for the 
136.5   purpose of demonstrations under this subdivision, the 
136.6   commissioner may contract with managed care organizations, 
136.7   including counties, to serve only elderly persons eligible for 
136.8   medical assistance, elderly and disabled persons, or disabled 
136.9   persons only.  For persons with primary diagnoses of mental 
136.10  retardation or a related condition, serious and persistent 
136.11  mental illness, or serious emotional disturbance, the 
136.12  commissioner must ensure that the county authority has approved 
136.13  the demonstration and contracting design.  Enrollment in these 
136.14  projects for persons with disabilities shall be voluntary until 
136.15  July 1, 2001.  The commissioner shall not implement any 
136.16  demonstration project under this subdivision for persons with 
136.17  primary diagnoses of mental retardation or a related condition, 
136.18  serious and persistent mental illness, or serious emotional 
136.19  disturbance, without approval of the county board of the county 
136.20  in which the demonstration is being implemented. 
136.21     Before implementation of a demonstration project for 
136.22  disabled persons, the commissioner must provide information to 
136.23  appropriate committees of the house of representatives and 
136.24  senate and must involve representatives of affected disability 
136.25  groups in the design of the demonstration projects. 
136.26     (b) A nursing facility reimbursed under the alternative 
136.27  reimbursement methodology in section 256B.434 may, in 
136.28  collaboration with a hospital, clinic, or other health care 
136.29  entity provide services under paragraph (a).  The commissioner 
136.30  shall amend the state plan and seek any federal waivers 
136.31  necessary to implement this paragraph.  
136.32     Sec. 55.  Minnesota Statutes 2000, section 256B.75, is 
136.33  amended to read: 
136.34     256B.75 [HOSPITAL OUTPATIENT REIMBURSEMENT.] 
136.35     (a) For outpatient hospital facility fee payments for 
136.36  services rendered on or after October 1, 1992, the commissioner 
137.1   of human services shall pay the lower of (1) submitted charge, 
137.2   or (2) 32 percent above the rate in effect on June 30, 1992, 
137.3   except for those services for which there is a federal maximum 
137.4   allowable payment.  Effective for services rendered on or after 
137.5   January 1, 2000, payment rates for nonsurgical outpatient 
137.6   hospital facility fees and emergency room facility fees shall be 
137.7   increased by eight percent over the rates in effect on December 
137.8   31, 1999, except for those services for which there is a federal 
137.9   maximum allowable payment.  Services for which there is a 
137.10  federal maximum allowable payment shall be paid at the lower of 
137.11  (1) submitted charge, or (2) the federal maximum allowable 
137.12  payment.  Total aggregate payment for outpatient hospital 
137.13  facility fee services shall not exceed the Medicare upper 
137.14  limit.  If it is determined that a provision of this section 
137.15  conflicts with existing or future requirements of the United 
137.16  States government with respect to federal financial 
137.17  participation in medical assistance, the federal requirements 
137.18  prevail.  The commissioner may, in the aggregate, prospectively 
137.19  reduce payment rates to avoid reduced federal financial 
137.20  participation resulting from rates that are in excess of the 
137.21  Medicare upper limitations. 
137.22     (b) Notwithstanding paragraph (a), payment for outpatient, 
137.23  emergency, and ambulatory surgery hospital facility fee services 
137.24  for critical access hospitals designated under section 144.1483, 
137.25  clause (11), shall be paid on a cost-based payment system that 
137.26  is based on the cost-finding methods and allowable costs of the 
137.27  Medicare program. 
137.28     (c) Effective for services provided on or after July 1, 
137.29  2002, rates that are based on the Medicare outpatient 
137.30  prospective payment system shall be replaced by a budget neutral 
137.31  prospective payment system that is derived using medical 
137.32  assistance data.  The commissioner shall provide a proposal to 
137.33  the 2002 legislature to define and implement this provision. 
137.34     Sec. 56.  Minnesota Statutes 2000, section 256B.76, is 
137.35  amended to read: 
137.36     256B.76 [PHYSICIAN AND DENTAL REIMBURSEMENT.] 
138.1      (a) Effective for services rendered on or after October 1, 
138.2   1992, the commissioner shall make payments for physician 
138.3   services as follows: 
138.4      (1) payment for level one Health Care Finance 
138.5   Administration's common procedural coding system (HCPCS) codes 
138.6   titled "office and other outpatient services," "preventive 
138.7   medicine new and established patient," "delivery, antepartum, 
138.8   and postpartum care," "critical care," Caesarean cesarean 
138.9   delivery and pharmacologic management provided to psychiatric 
138.10  patients, and HCPCS level three codes for enhanced services for 
138.11  prenatal high risk, shall be paid at the lower of (i) submitted 
138.12  charges, or (ii) 25 percent above the rate in effect on June 30, 
138.13  1992.  If the rate on any procedure code within these categories 
138.14  is different than the rate that would have been paid under the 
138.15  methodology in section 256B.74, subdivision 2, then the larger 
138.16  rate shall be paid; 
138.17     (2) payments for all other services shall be paid at the 
138.18  lower of (i) submitted charges, or (ii) 15.4 percent above the 
138.19  rate in effect on June 30, 1992; 
138.20     (3) all physician rates shall be converted from the 50th 
138.21  percentile of 1982 to the 50th percentile of 1989, less the 
138.22  percent in aggregate necessary to equal the above increases 
138.23  except that payment rates for home health agency services shall 
138.24  be the rates in effect on September 30, 1992; 
138.25     (4) effective for services rendered on or after January 1, 
138.26  2000, payment rates for physician and professional services 
138.27  shall be increased by three percent over the rates in effect on 
138.28  December 31, 1999, except for home health agency and family 
138.29  planning agency services; and 
138.30     (5) the increases in clause (4) shall be implemented 
138.31  January 1, 2000, for managed care. 
138.32     (b) Effective for services rendered on or after October 1, 
138.33  1992, the commissioner shall make payments for dental services 
138.34  as follows: 
138.35     (1) dental services shall be paid at the lower of (i) 
138.36  submitted charges, or (ii) 25 percent above the rate in effect 
139.1   on June 30, 1992; 
139.2      (2) dental rates shall be converted from the 50th 
139.3   percentile of 1982 to the 50th percentile of 1989, less the 
139.4   percent in aggregate necessary to equal the above increases; 
139.5      (3) effective for services rendered on or after January 1, 
139.6   2000, payment rates for dental services shall be increased by 
139.7   three percent over the rates in effect on December 31, 1999; 
139.8      (4) the commissioner shall award grants to community 
139.9   clinics or other nonprofit community organizations, political 
139.10  subdivisions, professional associations, or other organizations 
139.11  that demonstrate the ability to provide dental services 
139.12  effectively to public program recipients.  Grants may be used to 
139.13  fund the costs related to coordinating access for recipients, 
139.14  developing and implementing patient care criteria, upgrading or 
139.15  establishing new facilities, acquiring furnishings or equipment, 
139.16  recruiting new providers, or other development costs that will 
139.17  improve access to dental care in a region.  In awarding grants, 
139.18  the commissioner shall give priority to applicants that plan to 
139.19  serve areas of the state in which the number of dental providers 
139.20  is not currently sufficient to meet the needs of recipients of 
139.21  public programs or uninsured individuals.  The commissioner 
139.22  shall consider the following in awarding the grants:  (i) 
139.23  potential to successfully increase access to an underserved 
139.24  population; (ii) the ability to raise matching funds; (iii) the 
139.25  long-term viability of the project to improve access beyond the 
139.26  period of initial funding; (iv) the efficiency in the use of the 
139.27  funding; and (v) the experience of the proposers in providing 
139.28  services to the target population. 
139.29     The commissioner shall monitor the grants and may terminate 
139.30  a grant if the grantee does not increase dental access for 
139.31  public program recipients.  The commissioner shall consider 
139.32  grants for the following: 
139.33     (i) implementation of new programs or continued expansion 
139.34  of current access programs that have demonstrated success in 
139.35  providing dental services in underserved areas; 
139.36     (ii) a pilot program for utilizing hygienists outside of a 
140.1   traditional dental office to provide dental hygiene services; 
140.2   and 
140.3      (iii) a program that organizes a network of volunteer 
140.4   dentists, establishes a system to refer eligible individuals to 
140.5   volunteer dentists, and through that network provides donated 
140.6   dental care services to public program recipients or uninsured 
140.7   individuals. 
140.8      (5) beginning October 1, 1999, the payment for tooth 
140.9   sealants and fluoride treatments shall be the lower of (i) 
140.10  submitted charge, or (ii) 80 percent of median 1997 charges; and 
140.11     (6) (5) the increases listed in clauses (3) and (5) (4) 
140.12  shall be implemented January 1, 2000, for managed care; 
140.13     (6) effective for services provided on or after January 1, 
140.14  2002, payment for diagnostic examinations and dental x-rays 
140.15  provided to children under age 21 shall be the lower of: 
140.16     (i) the submitted charge; or 
140.17     (ii) 70 percent of median 1999 charges; and 
140.18     (7) a dental provider shall be reimbursed for the dental 
140.19  services actually provided to a patient when the dental work 
140.20  scheduled requires more than one appointment and the patient 
140.21  fails to keep the subsequent appointment or appointments.  
140.22     (c) Effective for dental services provided on or after 
140.23  January 1, 2002, the commissioner may increase reimbursement to 
140.24  dentists or dental clinics designated by the commissioner as 
140.25  critical access providers.  The commissioner may increase 
140.26  reimbursement to a critical access provider by up to 30 percent 
140.27  more than would otherwise be paid to that provider.  In 
140.28  determining critical access provider status, the commissioner 
140.29  shall review: 
140.30     (1) the utilization rate for dental services by Minnesota 
140.31  health care program patients in the service area; 
140.32     (2) the level of service provided to Minnesota health care 
140.33  program patients by the dentist or dental clinic; and 
140.34     (3) whether the level of services provided by the dentist 
140.35  or clinic is critical to maintaining an adequate level of access 
140.36  for patients in the service area. 
141.1   If no provider in a service area is designated a critical access 
141.2   provider upon review, the commissioner may designate a dentist 
141.3   or dental clinic as a critical access provider if the dentist or 
141.4   clinic is willing to provide care to Minnesota health care 
141.5   program patients at a level that significantly increases access 
141.6   to dental care within the service area.  The commissioner shall 
141.7   adjust payments to prepaid health plans to reflect increased 
141.8   reimbursement to critical access providers under this paragraph 
141.9   effective January 1, 2002. 
141.10     (d) An entity that operates both a Medicare certified 
141.11  comprehensive outpatient rehabilitation facility and a facility 
141.12  which was certified prior to January 1, 1993, that is licensed 
141.13  under Minnesota Rules, parts 9570.2000 to 9570.3600, and for 
141.14  whom at least 33 percent of the clients receiving rehabilitation 
141.15  services and mental health services in the most recent calendar 
141.16  year are medical assistance recipients, shall be reimbursed by 
141.17  the commissioner for rehabilitation services and mental health 
141.18  services at rates that are 38 percent greater than the maximum 
141.19  reimbursement rate allowed under paragraph (a), clause (2), when 
141.20  those services are (1) provided within the comprehensive 
141.21  outpatient rehabilitation facility and (2) provided to residents 
141.22  of nursing facilities owned by the entity. 
141.23     Sec. 57.  [256B.78] [MEDICAL ASSISTANCE DEMONSTRATION 
141.24  PROJECT FOR FAMILY PLANNING SERVICES.] 
141.25     (a) The commissioner of human services shall establish a 
141.26  medical assistance demonstration project to determine whether 
141.27  improved access to coverage of prepregnancy family planning 
141.28  services reduces medical assistance and MFIP costs. 
141.29     (b) This section is effective upon federal approval of the 
141.30  demonstration project. 
141.31     Sec. 58.  [256B.79] [HEALTH CARE PREVENTIVE SERVICES POOL.] 
141.32     The commissioner of human services shall create an 
141.33  uncompensated care pool to reimburse community clinics and other 
141.34  health care providers that provide initial health care 
141.35  screenings and preventive care services to children who are 
141.36  uninsured.  The commissioner shall establish a process for 
142.1   clinics to apply for reimbursement.  As a condition of receiving 
142.2   payment from this pool, the clinic or provider must offer 
142.3   services ranging from providing information up to on-site 
142.4   enrollment.  
142.5      Sec. 59.  Minnesota Statutes 2000, section 256J.31, 
142.6   subdivision 12, is amended to read: 
142.7      Subd. 12.  [RIGHT TO DISCONTINUE CASH ASSISTANCE.] A 
142.8   participant who is not in vendor payment status may discontinue 
142.9   receipt of the cash assistance portion of the MFIP assistance 
142.10  grant and retain eligibility for child care assistance under 
142.11  section 119B.05 and for medical assistance under sections 
142.12  256B.055, subdivision 3a, and 256B.0635.  For the months a 
142.13  participant chooses to discontinue the receipt of the cash 
142.14  portion of the MFIP grant, the assistance unit accrues months of 
142.15  eligibility to be applied toward eligibility for child care 
142.16  under section 119B.05 and for medical assistance under sections 
142.17  256B.055, subdivision 3a, and 256B.0635. 
142.18     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
142.19     Sec. 60.  Minnesota Statutes 2000, section 256K.03, 
142.20  subdivision 1, is amended to read: 
142.21     Subdivision 1.  [NOTIFICATION OF PROGRAM.] Except for the 
142.22  provisions in this section, the provisions for the MFIP 
142.23  application process shall be followed.  Within two days after 
142.24  receipt of a completed combined application form, the county 
142.25  agency must refer to the provider the applicant who meets the 
142.26  conditions under section 256K.02, and notify the applicant in 
142.27  writing of the program including the following provisions: 
142.28     (1) notification that, as part of the application process, 
142.29  applicants are required to attend orientation, to be followed 
142.30  immediately by a job search; 
142.31     (2) the program provider, the date, time, and location of 
142.32  the scheduled program orientation; 
142.33     (3) the procedures for qualifying for and receiving 
142.34  benefits under the program; 
142.35     (4) the immediate availability of supportive services, 
142.36  including, but not limited to, child care, transportation, 
143.1   medical assistance, and other work-related aid; and 
143.2      (5) the rights, responsibilities, and obligations of 
143.3   participants in the program, including, but not limited to, the 
143.4   grounds for exemptions and deferrals, the consequences for 
143.5   refusing or failing to participate fully, and the appeal process.
143.6      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
143.7      Sec. 61.  Minnesota Statutes 2000, section 256K.07, is 
143.8   amended to read: 
143.9      256K.07 [ELIGIBILITY FOR FOOD STAMPS, MEDICAL ASSISTANCE, 
143.10  AND CHILD CARE.] 
143.11     The participant shall be treated as an MFIP recipient for 
143.12  food stamps, medical assistance, and child care eligibility 
143.13  purposes.  The participant who leaves the program as a result of 
143.14  increased earnings from employment shall be eligible for 
143.15  transitional medical assistance and child care without regard to 
143.16  MFIP receipt in three of the six months preceding ineligibility. 
143.17     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
143.18     Sec. 62.  Minnesota Statutes 2000, section 256L.01, 
143.19  subdivision 4, is amended to read: 
143.20     Subd. 4.  [GROSS INDIVIDUAL OR GROSS FAMILY INCOME.] (a) 
143.21  "Gross individual or gross family income" for farm and nonfarm 
143.22  self-employed means income calculated using as the baseline the 
143.23  adjusted gross income reported on the applicant's federal income 
143.24  tax form for the previous year and adding back in reported 
143.25  depreciation, carryover loss, and net operating loss amounts 
143.26  that apply to the business in which the family is currently 
143.27  engaged.  
143.28     (b) "Gross individual or gross family income" for farm 
143.29  self-employed means income calculated using as the baseline the 
143.30  adjusted gross income reported on the applicant's federal income 
143.31  tax form for the previous year and adding back in reported 
143.32  depreciation amounts that apply to the business in which the 
143.33  family is currently engaged.  
143.34     (c) Applicants shall report the most recent financial 
143.35  situation of the family if it has changed from the period of 
143.36  time covered by the federal income tax form.  The report may be 
144.1   in the form of percentage increase or decrease. 
144.2      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
144.3   or upon receipt of federal approval, whichever is later. 
144.4      Sec. 63.  Minnesota Statutes 2000, section 256L.04, 
144.5   subdivision 2, is amended to read: 
144.6      Subd. 2.  [COOPERATION IN ESTABLISHING THIRD-PARTY 
144.7   LIABILITY, PATERNITY, AND OTHER MEDICAL SUPPORT.] (a) To be 
144.8   eligible for MinnesotaCare, individuals and families must 
144.9   cooperate with the state agency to identify potentially liable 
144.10  third-party payers and assist the state in obtaining third-party 
144.11  payments.  "Cooperation" includes, but is not limited to, 
144.12  identifying any third party who may be liable for care and 
144.13  services provided under MinnesotaCare to the enrollee, providing 
144.14  relevant information to assist the state in pursuing a 
144.15  potentially liable third party, and completing forms necessary 
144.16  to recover third-party payments.  For a child through age 18 
144.17  whose gross family income is equal to or less than 225 percent 
144.18  of the federal poverty guidelines, cooperation also includes 
144.19  providing information about a group health plan in which the 
144.20  child is enrolled or eligible to enroll.  If the health plan is 
144.21  determined cost-effective by the state agency and premiums are 
144.22  paid by the state or local agency or there is no cost to the 
144.23  enrollee, the MinnesotaCare enrollee must enroll or remain 
144.24  enrolled in the group health plan, and the commissioner may 
144.25  exempt the enrollee from the requirements of section 256L.12.  
144.26  For purposes of this subdivision, coverage provided by the 
144.27  Minnesota comprehensive health association under chapter 62E 
144.28  shall not be considered group health plan coverage or 
144.29  cost-effective by the state and local agency. 
144.30     (b) A parent, guardian, relative caretaker, or child 
144.31  enrolled in the MinnesotaCare program must cooperate with the 
144.32  department of human services and the local agency in 
144.33  establishing the paternity of an enrolled child and in obtaining 
144.34  medical care support and payments for the child and any other 
144.35  person for whom the person can legally assign rights, in 
144.36  accordance with applicable laws and rules governing the medical 
145.1   assistance program.  A child shall not be ineligible for or 
145.2   disenrolled from the MinnesotaCare program solely because the 
145.3   child's parent, relative caretaker, or guardian fails to 
145.4   cooperate in establishing paternity or obtaining medical support.
145.5      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002.  
145.6      Sec. 64.  Minnesota Statutes 2000, section 256L.05, 
145.7   subdivision 2, is amended to read: 
145.8      Subd. 2.  [COMMISSIONER'S DUTIES.] The commissioner shall 
145.9   use individuals' social security numbers as identifiers for 
145.10  purposes of administering the plan and conduct data matches to 
145.11  verify income.  Applicants shall submit evidence of individual 
145.12  and family income, earned and unearned, such as the most recent 
145.13  income tax return, wage slips, or other documentation that is 
145.14  determined by the commissioner as necessary to verify income 
145.15  eligibility or county agency shall use electronic verification 
145.16  as the primary method of income verification.  If there is a 
145.17  discrepancy in the electronic verification, an individual may be 
145.18  required to submit additional verification.  In addition, the 
145.19  commissioner shall perform random audits to verify reported 
145.20  income and eligibility.  The commissioner may execute data 
145.21  sharing arrangements with the department of revenue and any 
145.22  other governmental agency in order to perform income 
145.23  verification related to eligibility and premium payment under 
145.24  the MinnesotaCare program. 
145.25     Sec. 65.  Minnesota Statutes 2000, section 256L.06, 
145.26  subdivision 3, is amended to read: 
145.27     Subd. 3.  [ADMINISTRATION AND COMMISSIONER'S DUTIES.] (a) 
145.28  Premiums are dedicated to the commissioner for MinnesotaCare. 
145.29     (b) The commissioner shall develop and implement procedures 
145.30  to:  (1) require enrollees to report changes in income; (2) 
145.31  adjust sliding scale premium payments, based upon changes in 
145.32  enrollee income; and (3) disenroll enrollees from MinnesotaCare 
145.33  for failure to pay required premiums.  Failure to pay includes 
145.34  payment with a dishonored check, a returned automatic bank 
145.35  withdrawal, or a refused credit card or debit card payment.  The 
145.36  commissioner may demand a guaranteed form of payment, including 
146.1   a cashier's check or a money order, as the only means to replace 
146.2   a dishonored, returned, or refused payment. 
146.3      (c) Premiums are calculated on a calendar month basis and 
146.4   may be paid on a monthly, quarterly, or annual basis, with the 
146.5   first payment due upon notice from the commissioner of the 
146.6   premium amount required.  The commissioner shall inform 
146.7   applicants and enrollees of these premium payment options. 
146.8   Premium payment is required before enrollment is complete and to 
146.9   maintain eligibility in MinnesotaCare.  
146.10     (d) Nonpayment of the premium will result in disenrollment 
146.11  from the plan within one calendar month after the due date 
146.12  effective for the calendar month for which the premium was due.  
146.13  Persons disenrolled for nonpayment or who voluntarily terminate 
146.14  coverage from the program may not reenroll until four calendar 
146.15  months have elapsed.  Persons disenrolled for nonpayment who pay 
146.16  all past due premiums as well as current premiums due, including 
146.17  premiums due for the period of disenrollment, within 20 days of 
146.18  disenrollment, shall be reenrolled retroactively to the first 
146.19  day of disenrollment.  Persons disenrolled for nonpayment or who 
146.20  voluntarily terminate coverage from the program may not reenroll 
146.21  for four calendar months unless the person demonstrates good 
146.22  cause for nonpayment.  Good cause does not exist if a person 
146.23  chooses to pay other family expenses instead of the premium.  
146.24  The commissioner shall define good cause in rule. 
146.25     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
146.26     Sec. 66.  Minnesota Statutes 2000, section 256L.07, 
146.27  subdivision 1, is amended to read: 
146.28     Subdivision 1.  [GENERAL REQUIREMENTS.] (a) Children 
146.29  enrolled in the original children's health plan as of September 
146.30  30, 1992, and children who enrolled in the MinnesotaCare program 
146.31  after September 30, 1992, pursuant to Laws 1992, chapter 549, 
146.32  article 4, section 17, who have maintained continuous coverage 
146.33  in the MinnesotaCare program or medical assistance; and children 
146.34  under two; pregnant women; and children through age 18 who have 
146.35  family gross incomes that are equal to or less than 150 225 
146.36  percent of the federal poverty guidelines are eligible without 
147.1   meeting the requirements of subdivision 2, as long as they 
147.2   maintain continuous coverage in the MinnesotaCare program or 
147.3   medical assistance.  Children who apply for MinnesotaCare on or 
147.4   after the implementation date of the employer-subsidized health 
147.5   coverage program as described in Laws 1998, chapter 407, article 
147.6   5, section 45, who have family gross incomes that are equal to 
147.7   or less than 150 percent of the federal poverty guidelines, must 
147.8   meet the requirements of subdivision 2 to be eligible for 
147.9   MinnesotaCare subdivisions 2 and 3. 
147.10     (b) Families enrolled in MinnesotaCare under section 
147.11  256L.04, subdivision 1, whose income increases above 275 percent 
147.12  of the federal poverty guidelines, are no longer eligible for 
147.13  the program and shall be disenrolled by the commissioner.  
147.14  Individuals enrolled in MinnesotaCare under section 256L.04, 
147.15  subdivision 7, whose income increases above 175 percent of the 
147.16  federal poverty guidelines are no longer eligible for the 
147.17  program and shall be disenrolled by the commissioner.  For 
147.18  persons disenrolled under this subdivision, MinnesotaCare 
147.19  coverage terminates the last day of the calendar month following 
147.20  the month in which the commissioner determines that the income 
147.21  of a family or individual exceeds program income limits.  
147.22     (c) Notwithstanding paragraph (b), individuals and families 
147.23  may remain enrolled in MinnesotaCare if ten percent of their 
147.24  annual income is less than the annual premium for a policy with 
147.25  a $500 deductible available through the Minnesota comprehensive 
147.26  health association.  Individuals and families who are no longer 
147.27  eligible for MinnesotaCare under this subdivision shall be given 
147.28  an 18-month notice period from the date that ineligibility is 
147.29  determined before disenrollment.  
147.30     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
147.31     Sec. 67.  Minnesota Statutes 2000, section 256L.07, 
147.32  subdivision 2, is amended to read: 
147.33     Subd. 2.  [MUST NOT HAVE ACCESS TO EMPLOYER-SUBSIDIZED 
147.34  COVERAGE.] (a) To be eligible, a family or individual must not 
147.35  have access to subsidized health coverage through an employer 
147.36  and must not have had access to employer-subsidized coverage 
148.1   through a current employer for 18 months prior to application or 
148.2   reapplication.  A family or individual whose employer-subsidized 
148.3   coverage is lost due to an employer terminating health care 
148.4   coverage as an employee benefit during the previous 18 months is 
148.5   not eligible.  
148.6      (b) This subdivision does not apply to a family or 
148.7   individual who was enrolled in MinnesotaCare within six months 
148.8   or less of reapplication and who no longer has 
148.9   employer-subsidized coverage due to the employer terminating 
148.10  health care coverage as an employee benefit.  
148.11     (c) For purposes of this requirement subdivision, 
148.12  subsidized health coverage means health coverage for which the 
148.13  employer pays at least 50 60 percent of the cost of coverage for 
148.14  the employee or dependent, or a higher percentage as specified 
148.15  by the commissioner.  Children are eligible for 
148.16  employer-subsidized coverage through either parent, including 
148.17  the noncustodial parent.  The commissioner must treat employer 
148.18  contributions to Internal Revenue Code Section 125 plans and any 
148.19  other employer benefits intended to pay health care costs as 
148.20  qualified employer subsidies toward the cost of health coverage 
148.21  for employees for purposes of this subdivision. 
148.22     Sec. 68.  Minnesota Statutes 2000, section 256L.07, 
148.23  subdivision 3, is amended to read: 
148.24     Subd. 3.  [OTHER HEALTH COVERAGE.] (a) Families and 
148.25  individuals enrolled in the MinnesotaCare program must have no 
148.26  health coverage while enrolled or for at least four months prior 
148.27  to application and renewal.  Children enrolled in the original 
148.28  children's health plan and children in families with income 
148.29  equal to or less than 150 percent of the federal poverty 
148.30  guidelines, who have other health insurance, are eligible if the 
148.31  coverage: 
148.32     (1) lacks two or more of the following: 
148.33     (i) basic hospital insurance; 
148.34     (ii) medical-surgical insurance; 
148.35     (iii) prescription drug coverage; 
148.36     (iv) dental coverage; or 
149.1      (v) vision coverage; 
149.2      (2) requires a deductible of $100 or more per person per 
149.3   year; or 
149.4      (3) lacks coverage because the child has exceeded the 
149.5   maximum coverage for a particular diagnosis or the policy 
149.6   excludes a particular diagnosis. 
149.7      The commissioner may change this eligibility criterion for 
149.8   sliding scale premiums in order to remain within the limits of 
149.9   available appropriations.  The requirement of no health coverage 
149.10  does not apply to newborns. 
149.11     (b) Medical assistance, general assistance medical care, 
149.12  and civilian health and medical program of the uniformed 
149.13  service, CHAMPUS, are not considered insurance or health 
149.14  coverage for purposes of the four-month requirement described in 
149.15  this subdivision. 
149.16     (c) For purposes of this subdivision, Medicare Part A or B 
149.17  coverage under title XVIII of the Social Security Act, United 
149.18  States Code, title 42, sections 1395c to 1395w-4, is considered 
149.19  health coverage.  An applicant or enrollee may not refuse 
149.20  Medicare coverage to establish eligibility for MinnesotaCare. 
149.21     (d) Applicants who were recipients of medical assistance or 
149.22  general assistance medical care within one month of application 
149.23  must meet the provisions of this subdivision and subdivision 2. 
149.24     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
149.25     Sec. 69.  Minnesota Statutes 2000, section 256L.07, is 
149.26  amended by adding a subdivision to read: 
149.27     Subd. 5.  [EXEMPTION FOR PERSONS WITH CONTINUATION 
149.28  COVERAGE.] (a) Families with children and individuals who apply 
149.29  for the MinnesotaCare program upon termination from continuation 
149.30  coverage required under federal or state law are exempt from the 
149.31  requirements of subdivision 3. 
149.32     (b) For purposes of paragraph (a), "termination from 
149.33  continuation coverage" means involuntary termination for any 
149.34  reason, other than premium nonpayment by the family or 
149.35  individual, including termination due to reaching the end of the 
149.36  maximum period for continuation coverage required under federal 
150.1   or state law. 
150.2      Sec. 70.  Minnesota Statutes 2000, section 256L.07, is 
150.3   amended by adding a subdivision to read: 
150.4      Subd. 6.  [EXEMPTION FOR PERSONS LOSING COVERAGE AS A 
150.5   DEPENDENT.] Individuals who apply for the MinnesotaCare program 
150.6   upon termination of other health coverage due to loss of status 
150.7   as a dependent are exempt from the requirements of subdivision 3.
150.8      Sec. 71.  Minnesota Statutes 2000, section 256L.12, is 
150.9   amended by adding a subdivision to read: 
150.10     Subd. 11.  [AMERICAN INDIAN ENROLLEES.] For American Indian 
150.11  enrollees, MinnesotaCare shall cover health care services 
150.12  provided at Indian Health Service facilities and facilities 
150.13  operated by a tribe or tribal organization under funding 
150.14  authorized by United States Code, title 25, sections 450f to 
150.15  450n, or title III of the Indian Self-Determination and 
150.16  Education Assistance Act, Public Law Number 93-638, if those 
150.17  services would otherwise be covered under section 256L.03.  
150.18  Payments for services provided under this subdivision shall be 
150.19  made on a fee-for-service basis, and may, at the option of the 
150.20  tribe or tribal organization, be made at the rates authorized 
150.21  under sections 256.969, subdivision 16, and 256B.0625, 
150.22  subdivision 34, for those MinnesotaCare enrollees eligible for 
150.23  coverage at medical assistance rates.  For purposes of this 
150.24  subdivision, "American Indian" has the meaning given to persons 
150.25  to whom services will be provided in the Code of Federal 
150.26  Regulations, title 42, section 36.12. 
150.27     Sec. 72.  Minnesota Statutes 2000, section 256L.15, 
150.28  subdivision 1, is amended to read: 
150.29     Subdivision 1.  [PREMIUM DETERMINATION.] (a) Except as 
150.30  provided in paragraph (b), families with children and 
150.31  individuals shall pay a premium determined according to a 
150.32  sliding fee based on a percentage of the family's gross family 
150.33  income.  
150.34     (b) Children in households with family income equal to or 
150.35  less than 225 percent of the federal poverty guidelines and the 
150.36  parents and relative caretakers of children under the age of 21 
151.1   in households with family income equal to or less than 120 
151.2   percent of the federal poverty guidelines are exempt from paying 
151.3   a premium.  Pregnant women and children under age two are exempt 
151.4   from the provisions of section 256L.06, subdivision 3, paragraph 
151.5   (b), clause (3), requiring disenrollment for failure to pay 
151.6   premiums.  For pregnant women, this exemption continues until 
151.7   the first day of the month following the 60th day postpartum.  
151.8   Women who remain enrolled during pregnancy or the postpartum 
151.9   period, despite nonpayment of premiums, shall be disenrolled on 
151.10  the first of the month following the 60th day postpartum for the 
151.11  penalty period that otherwise applies under section 256L.06, 
151.12  unless they begin paying premiums. 
151.13     Sec. 73.  Minnesota Statutes 2000, section 256L.15, 
151.14  subdivision 2, is amended to read: 
151.15     Subd. 2.  [SLIDING FEE SCALE TO DETERMINE PERCENTAGE OF 
151.16  GROSS INDIVIDUAL OR FAMILY INCOME.] (a) The commissioner shall 
151.17  establish a sliding fee scale to determine the percentage of 
151.18  gross individual or family income that households at different 
151.19  income levels must pay to obtain coverage through the 
151.20  MinnesotaCare program.  The sliding fee scale must be based on 
151.21  the enrollee's gross individual or family income.  The sliding 
151.22  fee scale must contain separate tables based on enrollment of 
151.23  one, two, or three or more persons.  For single adults and 
151.24  families without children, the sliding fee scale begins with a 
151.25  premium of 1.5 percent of gross individual or family income for 
151.26  individuals or families with incomes below the limits for the 
151.27  medical assistance program for families and children in effect 
151.28  on January 1, 1999, and proceeds through the following evenly 
151.29  spaced steps:  1.8, 2.3, 3.1, 3.8, 4.8, 5.9, 7.4, and 8.8 
151.30  percent.  For families with children, the sliding fee scale 
151.31  begins with a premium of 1.5 percent of gross family income with 
151.32  incomes below the children in effect on January 1, 1999, and 
151.33  proceeds through following evenly spaced steps:  1.8, 2.3, 3.1, 
151.34  and 5.0 percent.  These percentages are matched to evenly spaced 
151.35  income steps ranging from the medical assistance income limit 
151.36  for families and children in effect on January 1, 1999, to 275 
152.1   percent of the federal poverty guidelines for the applicable 
152.2   family size, up to a family size of five.  The sliding fee scale 
152.3   for a family of five must be used for families of more than five.
152.4   The sliding fee scale and percentages are not subject to the 
152.5   provisions of chapter 14.  If a family or individual reports 
152.6   increased income after enrollment, premiums shall not be 
152.7   adjusted until eligibility renewal. 
152.8      (b) Enrolled individuals and families whose gross annual 
152.9   income increases above 275 percent of the federal poverty 
152.10  guideline shall pay the maximum premium.  The maximum premium is 
152.11  defined as a base charge for one, two, or three or more 
152.12  enrollees so that if all MinnesotaCare cases paid the maximum 
152.13  premium, the total revenue would equal the total cost of 
152.14  MinnesotaCare medical coverage and administration.  In this 
152.15  calculation, administrative costs shall be assumed to equal ten 
152.16  percent of the total.  The costs of medical coverage for 
152.17  pregnant women and children under age two and the enrollees in 
152.18  these groups shall be excluded from the total.  The maximum 
152.19  premium for two enrollees shall be twice the maximum premium for 
152.20  one, and the maximum premium for three or more enrollees shall 
152.21  be three times the maximum premium for one. 
152.22     Sec. 74.  Minnesota Statutes 2000, section 256L.16, is 
152.23  amended to read: 
152.24     256L.16 [PAYMENT RATES; SERVICES FOR FAMILIES AND CHILDREN 
152.25  UNDER THE MINNESOTACARE HEALTH CARE REFORM WAIVER.] 
152.26     Section 256L.11, subdivision 2, shall not apply to services 
152.27  provided to children families with children who are eligible to 
152.28  receive expanded services according to section 256L.03, 
152.29  subdivision 1a 256L.04, subdivision 1a. 
152.30     Sec. 75.  Laws 1999, chapter 245, article 4, section 110, 
152.31  is amended to read: 
152.32     Sec. 110.  [PROGRAMS FOR SENIOR CITIZENS.] 
152.33     The commissioner of human services shall study the 
152.34  eligibility criteria of and benefits provided to persons age 65 
152.35  and over through the array of cash assistance and health care 
152.36  programs administered by the department, and the extent to which 
153.1   these programs can be combined, simplified, or coordinated to 
153.2   reduce administrative costs and improve access.  The 
153.3   commissioner shall also study potential barriers to enrollment 
153.4   for low-income seniors who would otherwise deplete resources 
153.5   necessary to maintain independent community living.  At a 
153.6   minimum, the study must include an evaluation of asset 
153.7   requirements and enrollment sites.  The commissioner shall 
153.8   report study findings and recommendations to the legislature by 
153.9   June 30, 2001 January 15, 2002. 
153.10     Sec. 76.  [EXPAND DENTAL AUXILIARY PERSONNEL; 
153.11  FOREIGN-TRAINED DENTISTS; DENTAL CLINICS.] 
153.12     Subdivision 1.  [DEVELOPMENT.] (a) The board of dentistry, 
153.13  in consultation with the University of Minnesota school of 
153.14  dentistry, the Minnesota state colleges and universities that 
153.15  offer a dental auxiliary training program, the commissioner of 
153.16  health, and licensed dentists and dental auxiliaries practicing 
153.17  in private practice and at community clinics, shall develop new 
153.18  expanded duties for registered dental assistants and dental 
153.19  hygienists.  The new duties must be performed under direct or 
153.20  indirect supervision of a licensed dentist and must include 
153.21  selected technical dental services.  These expanded duties must 
153.22  be limited to reversible procedures, including, but not be 
153.23  limited to, placement, contouring, and adjustment of amalgam, 
153.24  composite, glass ionomer, and temporary restoration; pit and 
153.25  fissure sealants; and the adaptation and cementation of 
153.26  stainless steel crowns for primary teeth.  These expanded duties 
153.27  shall not include or imply a diagnosis or treatment plan, nor 
153.28  include prescribing medications, cutting hard or soft tissue, or 
153.29  any direct patient care in which formal training has not been 
153.30  completed.  The board shall establish a standard of practice and 
153.31  necessary educational qualifications for certification to 
153.32  perform the new duties. 
153.33     (b) The board shall make recommendations to amend Minnesota 
153.34  Statutes, chapter 150A, to permit a foreign-trained dentist to 
153.35  practice as a dental hygienist or as a registered dental 
153.36  assistant. 
154.1      (c) The board shall submit the proposed changes to 
154.2   Minnesota Statutes, chapter 150A, to the legislature by January 
154.3   15, 2002. 
154.4      Subd. 2.  [DENTAL CLINICS.] The commissioner of health, in 
154.5   consultation with the Minnesota state colleges and universities, 
154.6   shall determine the capital improvements needed to establish 
154.7   community-based dental clinics at state colleges and 
154.8   universities to be used as training sites and as public 
154.9   community-based dental clinics for public program recipients 
154.10  during times when the school is not in session and the clinic is 
154.11  not in use.  The commissioner shall submit the necessary capital 
154.12  improvement costs for start-up equipment and necessary 
154.13  infrastructure as part of the 2002 legislative capital budget 
154.14  requests. 
154.15     Sec. 77.  [FEDERAL WAIVER REQUEST.] 
154.16     The commissioner of human services shall seek federal 
154.17  approval to expand the medical assistance program to provide 
154.18  access to discounted prices for prescription drugs to Medicare 
154.19  beneficiaries with no prescription drug coverage.  Individuals 
154.20  in this expanded coverage group shall receive a discount for 
154.21  prescription drugs equal to the average rebate paid to the 
154.22  medical assistance program by pharmaceutical manufacturers.  
154.23  Upon receipt of the waiver, the commissioner shall submit a 
154.24  proposal to the legislature for implementation of this expansion 
154.25  to individuals with income at or below 200 percent of the 
154.26  federal poverty guidelines. 
154.27     Sec. 78.  [HEALTH STATUS IMPROVEMENT GRANTS.] 
154.28     The commissioner of human services shall award grants to 
154.29  improve the quality of health care services provided to 
154.30  children.  Priority shall be given to grant applications that: 
154.31     (1) develop "best practices guidelines" for primary and 
154.32  preventative health care services to all children in Minnesota, 
154.33  regardless of payor; 
154.34     (2) design and implement community-based education and 
154.35  evaluation programs for physicians and other direct care 
154.36  providers to implement best practice guidelines; and 
155.1      (3) reduce disparities in access to health care services 
155.2   and in health status of Minnesota children.  
155.3      Sec. 79.  [NOTICE OF PREMIUM CHANGES IN THE EMPLOYED 
155.4   PERSONS WITH DISABILITIES PROGRAM.] 
155.5      The commissioner of human services shall provide notice to 
155.6   all medical assistance recipients receiving coverage through the 
155.7   employed persons with disabilities program under Minnesota 
155.8   Statutes, section 256B.057, subdivision 9, of the first new 
155.9   premium schedule in effect on September 1, 2001, at least two 
155.10  months before the month in which the first new premium is due. 
155.11     Sec. 80.  [REPEALER.] 
155.12     (a) Minnesota Statutes 2000, section 16A.76, is repealed 
155.13  effective July 1, 2001. 
155.14     (b) Minnesota Statutes 2000, section 256.955, subdivision 
155.15  2b, is repealed effective January 1, 2002.  
155.16     (c) Minnesota Statutes 2000, sections 256B.0635, 
155.17  subdivision 3; and 256L.15, subdivision 3, are repealed 
155.18  effective July 1, 2002. 
155.19                             ARTICLE 3 
155.20                          CONTINUING CARE 
155.21     Section 1.  Minnesota Statutes 2000, section 245A.13, 
155.22  subdivision 7, is amended to read: 
155.23     Subd. 7.  [RATE RECOMMENDATION.] The commissioner of human 
155.24  services may review rates of a residential program participating 
155.25  in the medical assistance program which is in receivership and 
155.26  that has needs or deficiencies documented by the department of 
155.27  health or the department of human services.  If the commissioner 
155.28  of human services determines that a review of the rate 
155.29  established under section 256B.501 sections 256B.5012 and 
155.30  256B.5013 is needed, the commissioner shall: 
155.31     (1) review the order or determination that cites the 
155.32  deficiencies or needs; and 
155.33     (2) determine the need for additional staff, additional 
155.34  annual hours by type of employee, and additional consultants, 
155.35  services, supplies, equipment, repairs, or capital assets 
155.36  necessary to satisfy the needs or deficiencies. 
156.1      Sec. 2.  Minnesota Statutes 2000, section 245A.13, 
156.2   subdivision 8, is amended to read: 
156.3      Subd. 8.  [ADJUSTMENT TO THE RATE.] Upon review of rates 
156.4   under subdivision 7, the commissioner may adjust the residential 
156.5   program's payment rate.  The commissioner shall review the 
156.6   circumstances, together with the residential program cost report 
156.7   program's most recent income and expense report, to determine 
156.8   whether or not the deficiencies or needs can be corrected or met 
156.9   by reallocating residential program staff, costs, revenues, 
156.10  or any other resources including any investments, efficiency 
156.11  incentives, or allowances.  If the commissioner determines that 
156.12  any deficiency cannot be corrected or the need cannot be met 
156.13  with the payment rate currently being paid, the commissioner 
156.14  shall determine the payment rate adjustment by dividing the 
156.15  additional annual costs established during the commissioner's 
156.16  review by the residential program's actual resident days from 
156.17  the most recent desk-audited cost income and expense report or 
156.18  the estimated resident days in the projected receivership 
156.19  period.  The payment rate adjustment must meet the conditions in 
156.20  Minnesota Rules, parts 9553.0010 to 9553.0080, and remains in 
156.21  effect during the period of the receivership or until another 
156.22  date set by the commissioner.  Upon the subsequent sale, 
156.23  closure, or transfer of the residential program, the 
156.24  commissioner may recover amounts that were paid as payment rate 
156.25  adjustments under this subdivision.  This recovery shall be 
156.26  determined through a review of actual costs and resident days in 
156.27  the receivership period.  The costs the commissioner finds to be 
156.28  allowable shall be divided by the actual resident days for the 
156.29  receivership period.  This rate shall be compared to the rate 
156.30  paid throughout the receivership period, with the difference 
156.31  multiplied by resident days, being the amount to be repaid to 
156.32  the commissioner.  Allowable costs shall be determined by the 
156.33  commissioner as those ordinary, necessary, and related to 
156.34  resident care by prudent and cost-conscious management.  The 
156.35  buyer or transferee shall repay this amount to the commissioner 
156.36  within 60 days after the commissioner notifies the buyer or 
157.1   transferee of the obligation to repay.  This provision does not 
157.2   limit the liability of the seller to the commissioner pursuant 
157.3   to section 256B.0641. 
157.4      Sec. 3.  Minnesota Statutes 2000, section 252.275, 
157.5   subdivision 4b, is amended to read: 
157.6      Subd. 4b.  [GUARANTEED FLOOR.] Each county with an original 
157.7   allocation for the preceding year that is equal to or less than 
157.8   the guaranteed floor minimum index shall have a guaranteed floor 
157.9   equal to its original allocation for the preceding year.  Each 
157.10  county with an original allocation for the preceding year that 
157.11  is greater than the guaranteed floor minimum index shall have a 
157.12  guaranteed floor equal to the lesser of clause (1) or (2): 
157.13     (1) the county's original allocation for the preceding 
157.14  year; or 
157.15     (2) 70 percent of the county's reported expenditures 
157.16  eligible for reimbursement during the 12 months ending on June 
157.17  30 of the preceding calendar year. 
157.18     For calendar year 1993, the guaranteed floor minimum index 
157.19  shall be $20,000.  For each subsequent year, the index shall be 
157.20  adjusted by the projected change in the average value in the 
157.21  United States Department of Labor Bureau of Labor Statistics 
157.22  consumer price index (all urban) for that year. 
157.23     Notwithstanding this subdivision, no county shall be 
157.24  allocated a guaranteed floor of less than $1,000. 
157.25     When the amount of funds available for allocation is less 
157.26  than the amount available in the previous year, each county's 
157.27  previous year allocation shall be reduced in proportion to the 
157.28  reduction in the statewide funding, to establish each county's 
157.29  guaranteed floor. 
157.30     Sec. 4.  Minnesota Statutes 2000, section 254B.03, 
157.31  subdivision 1, is amended to read: 
157.32     Subdivision 1.  [LOCAL AGENCY DUTIES.] (a) Every local 
157.33  agency shall provide chemical dependency services to persons 
157.34  residing within its jurisdiction who meet criteria established 
157.35  by the commissioner for placement in a chemical dependency 
157.36  residential or nonresidential treatment service.  Chemical 
158.1   dependency money must be administered by the local agencies 
158.2   according to law and rules adopted by the commissioner under 
158.3   sections 14.001 to 14.69. 
158.4      (b) In order to contain costs, the county board shall, with 
158.5   the approval of the commissioner of human services, select 
158.6   eligible vendors of chemical dependency services who can provide 
158.7   economical and appropriate treatment.  Unless the local agency 
158.8   is a social services department directly administered by a 
158.9   county or human services board, the local agency shall not be an 
158.10  eligible vendor under section 254B.05.  The commissioner may 
158.11  approve proposals from county boards to provide services in an 
158.12  economical manner or to control utilization, with safeguards to 
158.13  ensure that necessary services are provided.  If a county 
158.14  implements a demonstration or experimental medical services 
158.15  funding plan, the commissioner shall transfer the money as 
158.16  appropriate.  If a county selects a vendor located in another 
158.17  state, the county shall ensure that the vendor is in compliance 
158.18  with the rules governing licensure of programs located in the 
158.19  state. 
158.20     (c) The calendar year 1998 2002 rate for vendors may not 
158.21  increase more than three 3.5 percent above the rate approved in 
158.22  effect on January 1, 1997 2001.  The calendar year 1999 2003 
158.23  rate for vendors may not increase more than three 3.5 percent 
158.24  above the rate in effect on January 1, 1998 2002. 
158.25     (d) A culturally specific vendor that provides assessments 
158.26  under a variance under Minnesota Rules, part 9530.6610, shall be 
158.27  allowed to provide assessment services to persons not covered by 
158.28  the variance. 
158.29     Sec. 5.  Minnesota Statutes 2000, section 254B.09, is 
158.30  amended by adding a subdivision to read: 
158.31     Subd. 8.  [PAYMENTS TO IMPROVE SERVICES TO AMERICAN 
158.32  INDIANS.] The commissioner may set rates for chemical dependency 
158.33  services according to the American Indian Health Improvement 
158.34  Act, Public Law Number 94-437, for eligible vendors.  These 
158.35  rates shall supersede rates set in county purchase of service 
158.36  agreements when payments are made on behalf of clients eligible 
159.1   according to Public Law Number 94-437. 
159.2      Sec. 6.  Minnesota Statutes 2000, section 256.01, is 
159.3   amended by adding a subdivision to read: 
159.4      Subd. 19.  [GRANTS FOR CASE MANAGEMENT SERVICES TO PERSONS 
159.5   WITH HIV OR AIDS.] The commissioner may award grants to eligible 
159.6   vendors for the development, implementation, and evaluation of 
159.7   case management services for individuals infected with the human 
159.8   immunodeficiency virus.  HIV/AIDs case management services will 
159.9   be provided to increase access to cost effective health care 
159.10  services, to reduce the risk of HIV transmission, to ensure that 
159.11  basic client needs are met, and to increase client access to 
159.12  needed community supports or services. 
159.13     Sec. 7.  Minnesota Statutes 2000, section 256.476, 
159.14  subdivision 1, is amended to read: 
159.15     Subdivision 1.  [PURPOSE AND GOALS.] The commissioner of 
159.16  human services shall establish a consumer support grant 
159.17  program to assist for individuals with functional limitations 
159.18  and their families in purchasing and securing supports which the 
159.19  individuals need to live as independently and productively in 
159.20  the community as possible who wish to purchase and secure their 
159.21  own supports.  The commissioner and local agencies shall jointly 
159.22  develop an implementation plan which must include a way to 
159.23  resolve the issues related to county liability.  The program 
159.24  shall: 
159.25     (1) make support grants available to individuals or 
159.26  families as an effective alternative to existing programs and 
159.27  services, such as the developmental disability family support 
159.28  program, the alternative care program, personal care attendant 
159.29  services, home health aide services, and private duty nursing 
159.30  facility services; 
159.31     (2) provide consumers more control, flexibility, and 
159.32  responsibility over the needed supports their services and 
159.33  supports; 
159.34     (3) promote local program management and decision making; 
159.35  and 
159.36     (4) encourage the use of informal and typical community 
160.1   supports. 
160.2      Sec. 8.  Minnesota Statutes 2000, section 256.476, 
160.3   subdivision 2, is amended to read: 
160.4      Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
160.5   following terms have the meanings given them: 
160.6      (a) "County board" means the county board of commissioners 
160.7   for the county of financial responsibility as defined in section 
160.8   256G.02, subdivision 4, or its designated representative.  When 
160.9   a human services board has been established under sections 
160.10  402.01 to 402.10, it shall be considered the county board for 
160.11  the purposes of this section. 
160.12     (b) "Family" means the person's birth parents, adoptive 
160.13  parents or stepparents, siblings or stepsiblings, children or 
160.14  stepchildren, grandparents, grandchildren, niece, nephew, aunt, 
160.15  uncle, or spouse.  For the purposes of this section, a family 
160.16  member is at least 18 years of age. 
160.17     (c) "Functional limitations" means the long-term inability 
160.18  to perform an activity or task in one or more areas of major 
160.19  life activity, including self-care, understanding and use of 
160.20  language, learning, mobility, self-direction, and capacity for 
160.21  independent living.  For the purpose of this section, the 
160.22  inability to perform an activity or task results from a mental, 
160.23  emotional, psychological, sensory, or physical disability, 
160.24  condition, or illness. 
160.25     (d) "Informed choice" means a voluntary decision made by 
160.26  the person or the person's legal representative, after becoming 
160.27  familiarized with the alternatives to: 
160.28     (1) select a preferred alternative from a number of 
160.29  feasible alternatives; 
160.30     (2) select an alternative which may be developed in the 
160.31  future; and 
160.32     (3) refuse any or all alternatives. 
160.33     (e) "Local agency" means the local agency authorized by the 
160.34  county board to carry out the provisions of this section. 
160.35     (f) "Person" or "persons" means a person or persons meeting 
160.36  the eligibility criteria in subdivision 3. 
161.1      (g) "Authorized representative" means an individual 
161.2   designated by the person or their legal representative to act on 
161.3   their behalf.  This individual may be a family member, guardian, 
161.4   representative payee, or other individual designated by the 
161.5   person or their legal representative, if any, to assist in 
161.6   purchasing and arranging for supports.  For the purposes of this 
161.7   section, an authorized representative is at least 18 years of 
161.8   age. 
161.9      (h) "Screening" means the screening of a person's service 
161.10  needs under sections 256B.0911 and 256B.092. 
161.11     (i) "Supports" means services, care, aids, home 
161.12  environmental modifications, or assistance purchased by the 
161.13  person or the person's family.  Examples of supports include 
161.14  respite care, assistance with daily living, and adaptive aids 
161.15  assistive technology.  For the purpose of this section, 
161.16  notwithstanding the provisions of section 144A.43, supports 
161.17  purchased under the consumer support program are not considered 
161.18  home care services. 
161.19     (j) "Program of origination" means the program the 
161.20  individual transferred from when approved for the consumer 
161.21  support grant program. 
161.22     Sec. 9.  Minnesota Statutes 2000, section 256.476, 
161.23  subdivision 3, is amended to read: 
161.24     Subd. 3.  [ELIGIBILITY TO APPLY FOR GRANTS.] (a) A person 
161.25  is eligible to apply for a consumer support grant if the person 
161.26  meets all of the following criteria: 
161.27     (1) the person is eligible for and has been approved to 
161.28  receive services under medical assistance as determined under 
161.29  sections 256B.055 and 256B.056 or the person is eligible for and 
161.30  has been approved to receive services under alternative care 
161.31  services as determined under section 256B.0913 or the person has 
161.32  been approved to receive a grant under the developmental 
161.33  disability family support program under section 252.32; 
161.34     (2) the person is able to direct and purchase the person's 
161.35  own care and supports, or the person has a family member, legal 
161.36  representative, or other authorized representative who can 
162.1   purchase and arrange supports on the person's behalf; 
162.2      (3) the person has functional limitations, requires ongoing 
162.3   supports to live in the community, and is at risk of or would 
162.4   continue institutionalization without such supports; and 
162.5      (4) the person will live in a home.  For the purpose of 
162.6   this section, "home" means the person's own home or home of a 
162.7   person's family member.  These homes are natural home settings 
162.8   and are not licensed by the department of health or human 
162.9   services. 
162.10     (b) Persons may not concurrently receive a consumer support 
162.11  grant if they are: 
162.12     (1) receiving home and community-based services under 
162.13  United States Code, title 42, section 1396h(c); personal care 
162.14  attendant and home health aide services under section 256B.0625; 
162.15  a developmental disability family support grant; or alternative 
162.16  care services under section 256B.0913; or 
162.17     (2) residing in an institutional or congregate care setting.
162.18     (c) A person or person's family receiving a consumer 
162.19  support grant shall not be charged a fee or premium by a local 
162.20  agency for participating in the program.  
162.21     (d) The commissioner may limit the participation of nursing 
162.22  facility residents, residents of intermediate care facilities 
162.23  for persons with mental retardation, and the recipients of 
162.24  services from federal waiver programs in the consumer support 
162.25  grant program if the participation of these individuals will 
162.26  result in an increase in the cost to the state. 
162.27     (e) The commissioner shall establish a budgeted 
162.28  appropriation each fiscal year for the consumer support grant 
162.29  program.  The number of individuals participating in the program 
162.30  will be adjusted so the total amount allocated to counties does 
162.31  not exceed the amount of the budgeted appropriation.  The 
162.32  budgeted appropriation will be adjusted annually to accommodate 
162.33  changes in demand for the consumer support grants. 
162.34     Sec. 10.  Minnesota Statutes 2000, section 256.476, 
162.35  subdivision 4, is amended to read: 
162.36     Subd. 4.  [SUPPORT GRANTS; CRITERIA AND LIMITATIONS.] (a) A 
163.1   county board may choose to participate in the consumer support 
163.2   grant program.  If a county board chooses to participate in the 
163.3   program, the local agency shall establish written procedures and 
163.4   criteria to determine the amount and use of support grants.  
163.5   These procedures must include, at least, the availability of 
163.6   respite care, assistance with daily living, and adaptive aids.  
163.7   The local agency may establish monthly or annual maximum amounts 
163.8   for grants and procedures where exceptional resources may be 
163.9   required to meet the health and safety needs of the person on a 
163.10  time-limited basis, however, the total amount awarded to each 
163.11  individual may not exceed the limits established in subdivision 
163.12  5, paragraph (f). 
163.13     (b) Support grants to a person or a person's family will be 
163.14  provided through a monthly subsidy payment and be in the form of 
163.15  cash, voucher, or direct county payment to vendor.  Support 
163.16  grant amounts must be determined by the local agency.  Each 
163.17  service and item purchased with a support grant must meet all of 
163.18  the following criteria:  
163.19     (1) it must be over and above the normal cost of caring for 
163.20  the person if the person did not have functional limitations; 
163.21     (2) it must be directly attributable to the person's 
163.22  functional limitations; 
163.23     (3) it must enable the person or the person's family to 
163.24  delay or prevent out-of-home placement of the person; and 
163.25     (4) it must be consistent with the needs identified in the 
163.26  service plan, when applicable. 
163.27     (c) Items and services purchased with support grants must 
163.28  be those for which there are no other public or private funds 
163.29  available to the person or the person's family.  Fees assessed 
163.30  to the person or the person's family for health and human 
163.31  services are not reimbursable through the grant. 
163.32     (d) In approving or denying applications, the local agency 
163.33  shall consider the following factors:  
163.34     (1) the extent and areas of the person's functional 
163.35  limitations; 
163.36     (2) the degree of need in the home environment for 
164.1   additional support; and 
164.2      (3) the potential effectiveness of the grant to maintain 
164.3   and support the person in the family environment or the person's 
164.4   own home. 
164.5      (e) At the time of application to the program or screening 
164.6   for other services, the person or the person's family shall be 
164.7   provided sufficient information to ensure an informed choice of 
164.8   alternatives by the person, the person's legal representative, 
164.9   if any, or the person's family.  The application shall be made 
164.10  to the local agency and shall specify the needs of the person 
164.11  and family, the form and amount of grant requested, the items 
164.12  and services to be reimbursed, and evidence of eligibility for 
164.13  medical assistance or alternative care program. 
164.14     (f) Upon approval of an application by the local agency and 
164.15  agreement on a support plan for the person or person's family, 
164.16  the local agency shall make grants to the person or the person's 
164.17  family.  The grant shall be in an amount for the direct costs of 
164.18  the services or supports outlined in the service agreement.  
164.19     (g) Reimbursable costs shall not include costs for 
164.20  resources already available, such as special education classes, 
164.21  day training and habilitation, case management, other services 
164.22  to which the person is entitled, medical costs covered by 
164.23  insurance or other health programs, or other resources usually 
164.24  available at no cost to the person or the person's family. 
164.25     (h) The state of Minnesota, the county boards participating 
164.26  in the consumer support grant program, or the agencies acting on 
164.27  behalf of the county boards in the implementation and 
164.28  administration of the consumer support grant program shall not 
164.29  be liable for damages, injuries, or liabilities sustained 
164.30  through the purchase of support by the individual, the 
164.31  individual's family, or the authorized representative under this 
164.32  section with funds received through the consumer support grant 
164.33  program.  Liabilities include but are not limited to:  workers' 
164.34  compensation liability, the Federal Insurance Contributions Act 
164.35  (FICA), or the Federal Unemployment Tax Act (FUTA).  For 
164.36  purposes of this section, participating county boards and 
165.1   agencies acting on behalf of county boards are exempt from the 
165.2   provisions of section 268.04. 
165.3      Sec. 11.  Minnesota Statutes 2000, section 256.476, 
165.4   subdivision 5, is amended to read: 
165.5      Subd. 5.  [REIMBURSEMENT, ALLOCATIONS, AND REPORTING.] (a) 
165.6   For the purpose of transferring persons to the consumer support 
165.7   grant program from specific programs or services, such as the 
165.8   developmental disability family support program and alternative 
165.9   care program, personal care attendant assistant services, home 
165.10  health aide services, or nursing facility private duty nursing 
165.11  services, the amount of funds transferred by the commissioner 
165.12  between the developmental disability family support program 
165.13  account, the alternative care account, the medical assistance 
165.14  account, or the consumer support grant account shall be based on 
165.15  each county's participation in transferring persons to the 
165.16  consumer support grant program from those programs and services. 
165.17     (b) At the beginning of each fiscal year, county 
165.18  allocations for consumer support grants shall be based on: 
165.19     (1) the number of persons to whom the county board expects 
165.20  to provide consumer supports grants; 
165.21     (2) their eligibility for current program and services; 
165.22     (3) the amount of nonfederal dollars expended on those 
165.23  individuals for those programs and services or, in situations 
165.24  where an individual is unable to obtain the support needed from 
165.25  the program of origination due to the unavailability of service 
165.26  providers at the time or the location where the supports are 
165.27  needed, the allocation will be based on the county's best 
165.28  estimate of the nonfederal dollars that would have been expended 
165.29  if the services had been available; and 
165.30     (4) projected dates when persons will start receiving 
165.31  grants.  County allocations shall be adjusted periodically by 
165.32  the commissioner based on the actual transfer of persons or 
165.33  service openings, and the nonfederal dollars associated with 
165.34  those persons or service openings, to the consumer support grant 
165.35  program. 
165.36     (c) The amount of funds transferred by the commissioner 
166.1   from the alternative care account and the medical assistance 
166.2   account for an individual may be changed if it is determined by 
166.3   the county or its agent that the individual's need for support 
166.4   has changed. 
166.5      (d) The authority to utilize funds transferred to the 
166.6   consumer support grant account for the purposes of implementing 
166.7   and administering the consumer support grant program will not be 
166.8   limited or constrained by the spending authority provided to the 
166.9   program of origination. 
166.10     (e) The commissioner shall may use up to five percent of 
166.11  each county's allocation, as adjusted, for payments to that 
166.12  county for administrative expenses, to be paid as a 
166.13  proportionate addition to reported direct service expenditures. 
166.14     (f) Except as provided in this paragraph, The county 
166.15  allocation for each individual or individual's family cannot 
166.16  exceed 80 percent of the total nonfederal dollars expended on 
166.17  the individual by the program of origination except for the 
166.18  developmental disabilities family support grant program which 
166.19  can be approved up to 100 percent of the nonfederal dollars and 
166.20  in situations as described in paragraph (b), clause (3).  In 
166.21  situations where exceptional need exists or the individual's 
166.22  need for support increases, up to 100 percent of the nonfederal 
166.23  dollars expended may be allocated to the county.  Allocations 
166.24  that exceed 80 percent of the nonfederal dollars expended on the 
166.25  individual by the program of origination must be approved by the 
166.26  commissioner.  The remainder of the amount expended on the 
166.27  individual by the program of origination will be used in the 
166.28  following proportions:  half will be made available to the 
166.29  consumer support grant program and participating counties for 
166.30  consumer training, resource development, and other costs, and 
166.31  half will be returned to the state general fund. 
166.32     (g) The commissioner may recover, suspend, or withhold 
166.33  payments if the county board, local agency, or grantee does not 
166.34  comply with the requirements of this section. 
166.35     (h) Grant funds unexpended by consumers shall return to the 
166.36  state once a year.  The annual return of unexpended grant funds 
167.1   shall occur in the quarter following the end of the state fiscal 
167.2   year. 
167.3      Sec. 12.  Minnesota Statutes 2000, section 256.476, 
167.4   subdivision 8, is amended to read: 
167.5      Subd. 8.  [COMMISSIONER RESPONSIBILITIES.] The commissioner 
167.6   shall: 
167.7      (1) transfer and allocate funds pursuant to this section; 
167.8      (2) determine allocations based on projected and actual 
167.9   local agency use; 
167.10     (3) monitor and oversee overall program spending; 
167.11     (4) evaluate the effectiveness of the program; 
167.12     (5) provide training and technical assistance for local 
167.13  agencies and consumers to help identify potential applicants to 
167.14  the program; and 
167.15     (6) develop guidelines for local agency program 
167.16  administration and consumer information; and 
167.17     (7) apply for a federal waiver or take any other action 
167.18  necessary to maximize federal funding for the program by 
167.19  September 1, 1999. 
167.20     Sec. 13.  Minnesota Statutes 2000, section 256.476, is 
167.21  amended by adding a subdivision to read: 
167.22     Subd. 11.  [CONSUMER SUPPORT GRANT PROGRAM AFTER JULY 1, 
167.23  2001.] (a) Effective July 1, 2001, upon approval of the 1115 
167.24  federal waiver for consumer-directed home care in section 
167.25  256B.0627, subdivision 13, the consumer support grant program 
167.26  shall be limited to 200 persons. 
167.27     (b) If federal approval delays implementation of the 1115 
167.28  waiver or it is denied, additional individuals may receive 
167.29  consumer support grants according to subdivision 5.  The 
167.30  statewide average of medical assistance expenditures for 
167.31  recipients receiving those services during the most recent 
167.32  fiscal year will be used to determine the maximum allowable 
167.33  grant award. 
167.34     (c) Persons receiving consumer support grants prior to July 
167.35  1, 2001, may continue to receive a grant amount established 
167.36  prior to July 1, 2001. 
168.1      Sec. 14.  Minnesota Statutes 2000, section 256B.0625, 
168.2   subdivision 7, is amended to read: 
168.3      Subd. 7.  [PRIVATE DUTY NURSING.] Medical assistance covers 
168.4   private duty nursing services in a recipient's home.  Recipients 
168.5   who are authorized to receive private duty nursing services in 
168.6   their home may use approved hours outside of the home during 
168.7   hours when normal life activities take them outside of their 
168.8   home and when, without the provision of private duty nursing, 
168.9   their health and safety would be jeopardized.  To use private 
168.10  duty nursing services at school, the recipient or responsible 
168.11  party must provide written authorization in the care plan 
168.12  identifying the chosen provider and the daily amount of services 
168.13  to be used at school.  Medical assistance does not cover private 
168.14  duty nursing services for residents of a hospital, nursing 
168.15  facility, intermediate care facility, or a health care facility 
168.16  licensed by the commissioner of health, except as authorized in 
168.17  section 256B.64 for ventilator-dependent recipients in hospitals 
168.18  or unless a resident who is otherwise eligible is on leave from 
168.19  the facility and the facility either pays for the private duty 
168.20  nursing services or forgoes the facility per diem for the leave 
168.21  days that private duty nursing services are used.  Total hours 
168.22  of service and payment allowed for services outside the home 
168.23  cannot exceed that which is otherwise allowed in an in-home 
168.24  setting according to section 256B.0627.  All private duty 
168.25  nursing services must be provided according to the limits 
168.26  established under section 256B.0627.  Private duty nursing 
168.27  services may not be reimbursed if the nurse is the spouse of the 
168.28  recipient or the parent or foster care provider of a recipient 
168.29  who is under age 18, or the recipient's legal guardian. 
168.30     Sec. 15.  Minnesota Statutes 2000, section 256B.0625, 
168.31  subdivision 19a, is amended to read: 
168.32     Subd. 19a.  [PERSONAL CARE ASSISTANT SERVICES.] Medical 
168.33  assistance covers personal care assistant services in a 
168.34  recipient's home.  To qualify for personal care assistant 
168.35  services, recipients or responsible parties must be able to 
168.36  identify the recipient's needs, direct and evaluate task 
169.1   accomplishment, and provide for health and safety.  Approved 
169.2   hours may be used outside the home when normal life activities 
169.3   take them outside the home and when, without the provision of 
169.4   personal care, their health and safety would be jeopardized.  To 
169.5   use personal care assistant services at school, the recipient or 
169.6   responsible party must provide written authorization in the care 
169.7   plan identifying the chosen provider and the daily amount of 
169.8   services to be used at school.  Total hours for services, 
169.9   whether actually performed inside or outside the recipient's 
169.10  home, cannot exceed that which is otherwise allowed for personal 
169.11  care assistant services in an in-home setting according to 
169.12  section 256B.0627.  Medical assistance does not cover personal 
169.13  care assistant services for residents of a hospital, nursing 
169.14  facility, intermediate care facility, health care facility 
169.15  licensed by the commissioner of health, or unless a resident who 
169.16  is otherwise eligible is on leave from the facility and the 
169.17  facility either pays for the personal care assistant services or 
169.18  forgoes the facility per diem for the leave days that personal 
169.19  care assistant services are used.  All personal care assistant 
169.20  services must be provided according to section 256B.0627.  
169.21  Personal care assistant services may not be reimbursed if the 
169.22  personal care assistant is the spouse or legal guardian of the 
169.23  recipient or the parent of a recipient under age 18, or the 
169.24  responsible party or the foster care provider of a recipient who 
169.25  cannot direct the recipient's own care unless, in the case of a 
169.26  foster care provider, a county or state case manager visits the 
169.27  recipient as needed, but not less than every six months, to 
169.28  monitor the health and safety of the recipient and to ensure the 
169.29  goals of the care plan are met.  Parents of adult recipients, 
169.30  adult children of the recipient or adult siblings of the 
169.31  recipient may be reimbursed for personal care assistant services 
169.32  if they are not the recipient's legal guardian and, if they are 
169.33  granted a waiver under section 256B.0627.  Until July 1, 2001, 
169.34  and Notwithstanding the provisions of section 256B.0627, 
169.35  subdivision 4, paragraph (b), clause (4), the noncorporate legal 
169.36  guardian or conservator of an adult, who is not the responsible 
170.1   party and not the personal care provider organization, may be 
170.2   granted a hardship waiver under section 256B.0627, to be 
170.3   reimbursed to provide personal care assistant services to the 
170.4   recipient, and shall not be considered to have a service 
170.5   provider interest for purposes of participation on the screening 
170.6   team under section 256B.092, subdivision 7. 
170.7      Sec. 16.  Minnesota Statutes 2000, section 256B.0625, 
170.8   subdivision 19c, is amended to read: 
170.9      Subd. 19c.  [PERSONAL CARE.] Medical assistance covers 
170.10  personal care assistant services provided by an individual who 
170.11  is qualified to provide the services according to subdivision 
170.12  19a and section 256B.0627, where the services are prescribed by 
170.13  a physician in accordance with a plan of treatment and are 
170.14  supervised by the recipient under the fiscal agent option 
170.15  according to section 256B.0627, subdivision 10, or a qualified 
170.16  professional.  "Qualified professional" means a mental health 
170.17  professional as defined in section 245.462, subdivision 18, or 
170.18  245.4871, subdivision 27; or a registered nurse as defined in 
170.19  sections 148.171 to 148.285.  As part of the assessment, the 
170.20  county public health nurse will consult with assist the 
170.21  recipient or responsible party and to identify the most 
170.22  appropriate person to provide supervision of the personal care 
170.23  assistant.  The qualified professional shall perform the duties 
170.24  described in Minnesota Rules, part 9505.0335, subpart 4.  
170.25     Sec. 17.  Minnesota Statutes 2000, section 256B.0625, 
170.26  subdivision 20, is amended to read: 
170.27     Subd. 20.  [MENTAL HEALTH CASE MANAGEMENT.] (a) To the 
170.28  extent authorized by rule of the state agency, medical 
170.29  assistance covers case management services to persons with 
170.30  serious and persistent mental illness and children with severe 
170.31  emotional disturbance.  Services provided under this section 
170.32  must meet the relevant standards in sections 245.461 to 
170.33  245.4888, the Comprehensive Adult and Children's Mental Health 
170.34  Acts, Minnesota Rules, parts 9520.0900 to 9520.0926, and 
170.35  9505.0322, excluding subpart 10. 
170.36     (b) Entities meeting program standards set out in rules 
171.1   governing family community support services as defined in 
171.2   section 245.4871, subdivision 17, are eligible for medical 
171.3   assistance reimbursement for case management services for 
171.4   children with severe emotional disturbance when these services 
171.5   meet the program standards in Minnesota Rules, parts 9520.0900 
171.6   to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
171.7      (c) Medical assistance and MinnesotaCare payment for mental 
171.8   health case management shall be made on a monthly basis.  In 
171.9   order to receive payment for an eligible child, the provider 
171.10  must document at least a face-to-face contact with the child, 
171.11  the child's parents, or the child's legal representative.  To 
171.12  receive payment for an eligible adult, the provider must 
171.13  document: 
171.14     (1) at least a face-to-face contact with the adult or the 
171.15  adult's legal representative; or 
171.16     (2) at least a telephone contact with the adult or the 
171.17  adult's legal representative and document a face-to-face contact 
171.18  with the adult or the adult's legal representative within the 
171.19  preceding two months. 
171.20     (d) Payment for mental health case management provided by 
171.21  county or state staff shall be based on the monthly rate 
171.22  methodology under section 256B.094, subdivision 6, paragraph 
171.23  (b), with separate rates calculated for child welfare and mental 
171.24  health, and within mental health, separate rates for children 
171.25  and adults. 
171.26     (e) Payment for mental health case management provided by 
171.27  county-contracted vendors shall be based on a monthly rate 
171.28  negotiated by the host county.  The negotiated rate must not 
171.29  exceed the rate charged by the vendor for the same service to 
171.30  other payers.  If the service is provided by a team of 
171.31  contracted vendors, the county may negotiate a team rate with a 
171.32  vendor who is a member of the team.  The team shall determine 
171.33  how to distribute the rate among its members.  No reimbursement 
171.34  received by contracted vendors shall be returned to the county, 
171.35  except to reimburse the county for advance funding provided by 
171.36  the county to the vendor. 
172.1      (f) If the service is provided by a team which includes 
172.2   contracted vendors and county or state staff, the costs for 
172.3   county or state staff participation in the team shall be 
172.4   included in the rate for county-provided services.  In this 
172.5   case, the contracted vendor and the county may each receive 
172.6   separate payment for services provided by each entity in the 
172.7   same month.  In order to prevent duplication of services, the 
172.8   county must document, in the recipient's file, the need for team 
172.9   case management and a description of the roles of the team 
172.10  members. 
172.11     (g) The commissioner shall calculate the nonfederal share 
172.12  of actual medical assistance and general assistance medical care 
172.13  payments for each county, based on the higher of calendar year 
172.14  1995 or 1996, by service date, project that amount forward to 
172.15  1999, and transfer one-half of the result from medical 
172.16  assistance and general assistance medical care to each county's 
172.17  mental health grants under sections 245.4886 and 256E.12 for 
172.18  calendar year 1999.  The annualized minimum amount added to each 
172.19  county's mental health grant shall be $3,000 per year for 
172.20  children and $5,000 per year for adults.  The commissioner may 
172.21  reduce the statewide growth factor in order to fund these 
172.22  minimums.  The annualized total amount transferred shall become 
172.23  part of the base for future mental health grants for each county.
172.24     (h) Any net increase in revenue to the county as a result 
172.25  of the change in this section must be used to provide expanded 
172.26  mental health services as defined in sections 245.461 to 
172.27  245.4888, the Comprehensive Adult and Children's Mental Health 
172.28  Acts, excluding inpatient and residential treatment.  For 
172.29  adults, increased revenue may also be used for services and 
172.30  consumer supports which are part of adult mental health projects 
172.31  approved under Laws 1997, chapter 203, article 7, section 25.  
172.32  For children, increased revenue may also be used for respite 
172.33  care and nonresidential individualized rehabilitation services 
172.34  as defined in section 245.492, subdivisions 17 and 23.  
172.35  "Increased revenue" has the meaning given in Minnesota Rules, 
172.36  part 9520.0903, subpart 3.  
173.1      (i) Notwithstanding section 256B.19, subdivision 1, the 
173.2   nonfederal share of costs for mental health case management 
173.3   shall be provided by the recipient's county of responsibility, 
173.4   as defined in sections 256G.01 to 256G.12, from sources other 
173.5   than federal funds or funds used to match other federal funds.  
173.6      (j) The commissioner may suspend, reduce, or terminate the 
173.7   reimbursement to a provider that does not meet the reporting or 
173.8   other requirements of this section.  The county of 
173.9   responsibility, as defined in sections 256G.01 to 256G.12, is 
173.10  responsible for any federal disallowances.  The county may share 
173.11  this responsibility with its contracted vendors.  
173.12     (k) The commissioner shall set aside a portion of the 
173.13  federal funds earned under this section to repay the special 
173.14  revenue maximization account under section 256.01, subdivision 
173.15  2, clause (15).  The repayment is limited to: 
173.16     (1) the costs of developing and implementing this section; 
173.17  and 
173.18     (2) programming the information systems. 
173.19     (l) Notwithstanding section 256.025, subdivision 2, 
173.20  payments to counties for case management expenditures under this 
173.21  section shall only be made from federal earnings from services 
173.22  provided under this section.  Payments to contracted vendors 
173.23  shall include both the federal earnings and the county share. 
173.24     (m) Notwithstanding section 256B.041, county payments for 
173.25  the cost of mental health case management services provided by 
173.26  county or state staff shall not be made to the state treasurer.  
173.27  For the purposes of mental health case management services 
173.28  provided by county or state staff under this section, the 
173.29  centralized disbursement of payments to counties under section 
173.30  256B.041 consists only of federal earnings from services 
173.31  provided under this section. 
173.32     (n) Case management services under this subdivision do not 
173.33  include therapy, treatment, legal, or outreach services. 
173.34     (o) If the recipient is a resident of a nursing facility, 
173.35  intermediate care facility, or hospital, and the recipient's 
173.36  institutional care is paid by medical assistance, payment for 
174.1   case management services under this subdivision is limited to 
174.2   the last 30 180 days of the recipient's residency in that 
174.3   facility and may not exceed more than two six months in a 
174.4   calendar year. 
174.5      (p) Payment for case management services under this 
174.6   subdivision shall not duplicate payments made under other 
174.7   program authorities for the same purpose. 
174.8      (q) By July 1, 2000, the commissioner shall evaluate the 
174.9   effectiveness of the changes required by this section, including 
174.10  changes in number of persons receiving mental health case 
174.11  management, changes in hours of service per person, and changes 
174.12  in caseload size. 
174.13     (r) For each calendar year beginning with the calendar year 
174.14  2001, the annualized amount of state funds for each county 
174.15  determined under paragraph (g) shall be adjusted by the county's 
174.16  percentage change in the average number of clients per month who 
174.17  received case management under this section during the fiscal 
174.18  year that ended six months prior to the calendar year in 
174.19  question, in comparison to the prior fiscal year. 
174.20     (s) For counties receiving the minimum allocation of $3,000 
174.21  or $5,000 described in paragraph (g), the adjustment in 
174.22  paragraph (r) shall be determined so that the county receives 
174.23  the higher of the following amounts: 
174.24     (1) a continuation of the minimum allocation in paragraph 
174.25  (g); or 
174.26     (2) an amount based on that county's average number of 
174.27  clients per month who received case management under this 
174.28  section during the fiscal year that ended six months prior to 
174.29  the calendar year in question, in comparison to the prior fiscal 
174.30  year, times the average statewide grant per person per month for 
174.31  counties not receiving the minimum allocation. 
174.32     (t) The adjustments in paragraphs (r) and (s) shall be 
174.33  calculated separately for children and adults. 
174.34     Sec. 18.  Minnesota Statutes 2000, section 256B.0625, is 
174.35  amended by adding a subdivision to read: 
174.36     Subd. 43.  [TARGETED CASE MANAGEMENT.] For purposes of 
175.1   subdivisions 43a to 43h, the following terms have the meanings 
175.2   given them: 
175.3      (1) "home care service recipients" means those individuals 
175.4   receiving the following services under section 256B.0627:  
175.5   skilled nursing visits, home health aide visits, private duty 
175.6   nursing, personal care assistants, or therapies provided through 
175.7   a home health agency; 
175.8      (2) "home care targeted case management" means the 
175.9   provision of targeted case management services for the purpose 
175.10  of assisting home care service recipients to gain access to 
175.11  needed services and supports so that they may remain in the 
175.12  community; 
175.13     (3) "institutions" means hospitals, consistent with Code of 
175.14  Federal Regulations, title 42, section 440.10; regional 
175.15  treatment center inpatient services, consistent with section 
175.16  245.474; nursing facilities; and intermediate care facilities 
175.17  for persons with mental retardation; 
175.18     (4) "relocation targeted case management" means the 
175.19  provision of targeted case management services for the purpose 
175.20  of assisting recipients to gain access to needed services and 
175.21  supports if they choose to move from an institution to the 
175.22  community.  Relocation targeted case management may be provided 
175.23  during the last 180 consecutive days of an eligible recipient's 
175.24  institutional stay; and 
175.25     (5) "targeted case management" means case management 
175.26  services provided to help recipients gain access to needed 
175.27  medical, social, educational, and other services and supports. 
175.28     Sec. 19.  Minnesota Statutes 2000, section 256B.0625, is 
175.29  amended by adding a subdivision to read: 
175.30     Subd. 43a.  [ELIGIBILITY.] The following persons are 
175.31  eligible for relocation targeted case management or home 
175.32  care-targeted case management: 
175.33     (1) medical assistance eligible persons residing in 
175.34  institutions who choose to move into the community are eligible 
175.35  for relocation targeted case management services; and 
175.36     (2) medical assistance eligible persons receiving home care 
176.1   services, who are not eligible for any other medical assistance 
176.2   reimbursable case management service, are eligible for home 
176.3   care-targeted case management services beginning January 1, 2003.
176.4      Sec. 20.  Minnesota Statutes 2000, section 256B.0625, is 
176.5   amended by adding a subdivision to read: 
176.6      Subd. 43b.  [RELOCATION TARGETED CASE MANAGEMENT PROVIDER 
176.7   QUALIFICATIONS.] The following qualifications and certification 
176.8   standards must be met by providers of relocation targeted case 
176.9   management: 
176.10     (a) The commissioner must certify each provider or 
176.11  relocation targeted case management before enrollment.  The 
176.12  certification process shall examine the provider's ability to 
176.13  meet the requirements in this subdivision and other federal and 
176.14  state requirements of this service.  A certified relocation 
176.15  targeted case management provider may subcontract with another 
176.16  provider to deliver relocation targeted case management 
176.17  services.  Subcontracted providers must demonstrate the ability 
176.18  to provide the services outlined in subdivision 43d. 
176.19     (b) A relocation targeted case management provider is an 
176.20  enrolled medical assistance provider who is determined by the 
176.21  commissioner to have all of the following characteristics: 
176.22     (1) the legal authority to provide public welfare under 
176.23  sections 393.01, subdivision 7; and 393.07; or a federally 
176.24  recognized Indian tribe; 
176.25     (2) the demonstrated capacity and experience to provide the 
176.26  components of case management to coordinate and link community 
176.27  resources needed by the eligible population; 
176.28     (3) the administrative capacity and experience to serve the 
176.29  target population for whom it will provide services and ensure 
176.30  quality of services under state and federal requirements; 
176.31     (4) the legal authority to provide complete investigative 
176.32  and protective services under section 626.556, subdivision 10; 
176.33  and child welfare and foster care services under section 393.07, 
176.34  subdivisions 1 and 2; or a federally recognized Indian tribe; 
176.35     (5) a financial management system that provides accurate 
176.36  documentation of services and costs under state and federal 
177.1   requirements; and 
177.2      (6) the capacity to document and maintain individual case 
177.3   records under state and federal requirements. 
177.4   A provider of targeted case management under subdivision 20 may 
177.5   be deemed a certified provider of relocation targeted case 
177.6   management. 
177.7      Sec. 21.  Minnesota Statutes 2000, section 256B.0625, is 
177.8   amended by adding a subdivision to read: 
177.9      Subd. 43c.  [HOME CARE TARGETED CASE MANAGEMENT PROVIDER 
177.10  QUALIFICATIONS.] The following qualifications and certification 
177.11  standards must be met by providers of home care targeted case 
177.12  management. 
177.13     (a) The commissioner must certify each provider of home 
177.14  care targeted case management before enrollment.  The 
177.15  certification process shall examine the provider's ability to 
177.16  meet the requirements in this subdivision and other state and 
177.17  federal requirements of this service. 
177.18     (b) A home care targeted case management provider is an 
177.19  enrolled medical assistance provider who has a minimum of a 
177.20  bachelor's degree, a license in a health or human services 
177.21  field, and is determined by the commissioner to have all of the 
177.22  following characteristics: 
177.23     (1) the demonstrated capacity and experience to provide the 
177.24  components of case management to coordinate and link community 
177.25  resources needed by the eligible population; 
177.26     (2) the administrative capacity and experience to serve the 
177.27  target population for whom it will provide services and ensure 
177.28  quality of services under state and federal requirements; 
177.29     (3) a financial management system that provides accurate 
177.30  documentation of services and costs under state and federal 
177.31  requirements; 
177.32     (4) the capacity to document and maintain individual case 
177.33  records under state and federal requirements; and 
177.34     (5) the capacity to coordinate with county administrative 
177.35  functions. 
177.36     Sec. 22.  Minnesota Statutes 2000, section 256B.0625, is 
178.1   amended by adding a subdivision to read: 
178.2      Subd. 43d.  [ELIGIBLE SERVICES.] Services eligible for 
178.3   medical assistance reimbursement as targeted case management 
178.4   include: 
178.5      (1) assessment of the recipient's need for targeted case 
178.6   management services; 
178.7      (2) development, completion, and regular review of a 
178.8   written individual service plan, which is based upon the 
178.9   assessment of the recipient's needs and choices, and which will 
178.10  ensure access to medical, social, educational, and other related 
178.11  services and supports; 
178.12     (3) routine contact or communication with the recipient, 
178.13  the recipient's family, primary caregiver, legal representative, 
178.14  substitute care provider, service providers, or other relevant 
178.15  persons identified as necessary to the development or 
178.16  implementation of the goals of the individual service plan; 
178.17     (4) coordinating referrals for, and the provision of, case 
178.18  management services for the recipient with appropriate service 
178.19  providers, consistent with section 1902(a)(23) of the Social 
178.20  Security Act; 
178.21     (5) coordinating and monitoring the overall service 
178.22  delivery to ensure quality of services, appropriateness, and 
178.23  continued need; 
178.24     (6) completing and maintaining necessary documentation that 
178.25  supports and verifies the activities in this subdivision; 
178.26     (7) traveling to conduct a visit with the recipient or 
178.27  other relevant person necessary to develop or implement the 
178.28  goals of the individual service plan; and 
178.29     (8) coordinating with the institution discharge planner in 
178.30  the 180-day period before the recipient's discharge. 
178.31     Sec. 23.  Minnesota Statutes 2000, section 256B.0625, is 
178.32  amended by adding a subdivision to read: 
178.33     Subd. 43e.  [TIMELINES.] The following timelines must be 
178.34  met for assigning a case manager: 
178.35     (1) for relocation targeted case management, an eligible 
178.36  recipient must be assigned a case manager who visits the person 
179.1   within 20 working days of requesting one from their county of 
179.2   financial responsibility as determined under chapter 256G.  If a 
179.3   county agency does not provide case management services as 
179.4   required, the recipient may, after written notice to the county 
179.5   agency, obtain targeted-relocation case management services from 
179.6   a home care targeted case management provider under this 
179.7   subdivision; and 
179.8      (2) for home care targeted case management, an eligible 
179.9   recipient must be assigned a case manager within 20 working days 
179.10  of requesting one from a home care targeted case management 
179.11  provider, as defined in subdivision 43c. 
179.12     Sec. 24.  Minnesota Statutes 2000, section 256B.0625, is 
179.13  amended by adding a subdivision to read: 
179.14     Subd. 43f.  [EVALUATION.] The commissioner shall evaluate 
179.15  the delivery of targeted case management, including, but not 
179.16  limited to, access to case management services, consumer 
179.17  satisfaction with case management services, and quality of case 
179.18  management services. 
179.19     Sec. 25.  Minnesota Statutes 2000, section 256B.0625, is 
179.20  amended by adding a subdivision to read: 
179.21     Subd. 43g.  [CONTACT DOCUMENTATION.] The case manager must 
179.22  document each face-to-face and telephone contact with the 
179.23  recipient and others involved in the recipient's individual 
179.24  service plan. 
179.25     Sec. 26.  Minnesota Statutes 2000, section 256B.0625, is 
179.26  amended by adding a subdivision to read: 
179.27     Subd. 43h.  [PAYMENT RATES.] The commissioner shall set 
179.28  payment rates for targeted case management under this 
179.29  subdivision.  Case managers may bill according to the following 
179.30  criteria: 
179.31     (1) for relocation targeted case management, case managers 
179.32  may bill for direct case management activities, including 
179.33  face-to-face and telephone contacts, in the 180 days preceding 
179.34  an eligible recipient's discharge from an institution; 
179.35     (2) for home care targeted case management, case managers 
179.36  may bill for direct case management activities, including 
180.1   face-to-face and telephone contacts; and 
180.2      (3) billings for targeted case management services under 
180.3   this subdivision shall not duplicate payments made under other 
180.4   program authorities for the same purpose. 
180.5      Sec. 27.  Minnesota Statutes 2000, section 256B.0627, 
180.6   subdivision 1, is amended to read: 
180.7      Subdivision 1.  [DEFINITION.] (a) "Activities of daily 
180.8   living" includes eating, toileting, grooming, dressing, bathing, 
180.9   transferring, mobility, and positioning.  
180.10     (b) "Assessment" means a review and evaluation of a 
180.11  recipient's need for home care services conducted in person.  
180.12  Assessments for private duty nursing shall be conducted by a 
180.13  registered private duty nurse.  Assessments for home health 
180.14  agency services shall be conducted by a home health agency 
180.15  nurse.  Assessments for personal care assistant services shall 
180.16  be conducted by the county public health nurse or a certified 
180.17  public health nurse under contract with the county.  A 
180.18  face-to-face assessment must include:  documentation of health 
180.19  status, determination of need, evaluation of service 
180.20  effectiveness, identification of appropriate services, service 
180.21  plan development or modification, coordination of services, 
180.22  referrals and follow-up to appropriate payers and community 
180.23  resources, completion of required reports, recommendation of 
180.24  service authorization, and consumer education.  Once the need 
180.25  for personal care assistant services is determined under this 
180.26  section, the county public health nurse or certified public 
180.27  health nurse under contract with the county is responsible for 
180.28  communicating this recommendation to the commissioner and the 
180.29  recipient.  A face-to-face assessment for personal 
180.30  care assistant services is conducted on those recipients who 
180.31  have never had a county public health nurse assessment.  A 
180.32  face-to-face assessment must occur at least annually or when 
180.33  there is a significant change in the recipient's condition or 
180.34  when there is a change in the need for personal care assistant 
180.35  services.  A service update may substitute for the annual 
180.36  face-to-face assessment when there is not a significant change 
181.1   in recipient condition or a change in the need for personal care 
181.2   assistant service.  A service update or review for temporary 
181.3   increase includes a review of initial baseline data, evaluation 
181.4   of service effectiveness, redetermination of service need, 
181.5   modification of service plan and appropriate referrals, update 
181.6   of initial forms, obtaining service authorization, and on going 
181.7   consumer education.  Assessments for medical assistance home 
181.8   care services for mental retardation or related conditions and 
181.9   alternative care services for developmentally disabled home and 
181.10  community-based waivered recipients may be conducted by the 
181.11  county public health nurse to ensure coordination and avoid 
181.12  duplication.  Assessments must be completed on forms provided by 
181.13  the commissioner within 30 days of a request for home care 
181.14  services by a recipient or responsible party. 
181.15     (b) (c) "Care plan" means a written description of personal 
181.16  care assistant services developed by the qualified 
181.17  professional or the recipient's physician with the recipient or 
181.18  responsible party to be used by the personal care assistant with 
181.19  a copy provided to the recipient or responsible party. 
181.20     (d) "Complex and regular private duty nursing care" means: 
181.21     (1) complex care is private duty nursing provided to 
181.22  recipients who are ventilator dependent or for whom a physician 
181.23  has certified that were it not for private duty nursing the 
181.24  recipient would meet the criteria for inpatient hospital 
181.25  intensive care unit (ICU) level of care; and 
181.26     (2) regular care is private duty nursing provided to all 
181.27  other recipients. 
181.28     (e) "Health-related functions" means functions that can be 
181.29  delegated or assigned by a licensed health care professional 
181.30  under state law to be performed by a personal care attendant. 
181.31     (c) (f) "Home care services" means a health service, 
181.32  determined by the commissioner as medically necessary, that is 
181.33  ordered by a physician and documented in a service plan that is 
181.34  reviewed by the physician at least once every 62 60 days for the 
181.35  provision of home health services, or private duty nursing, or 
181.36  at least once every 365 days for personal care.  Home care 
182.1   services are provided to the recipient at the recipient's 
182.2   residence that is a place other than a hospital or long-term 
182.3   care facility or as specified in section 256B.0625.  
182.4      (g) "Instrumental activities of daily living" includes meal 
182.5   planning and preparation, managing finances, shopping for food, 
182.6   clothing, and other essential items, performing essential 
182.7   household chores, communication by telephone and other media, 
182.8   and getting around and participating in the community. 
182.9      (d) (h) "Medically necessary" has the meaning given in 
182.10  Minnesota Rules, parts 9505.0170 to 9505.0475.  
182.11     (e) (i) "Personal care assistant" means a person who:  
182.12     (1) is at least 18 years old, except for persons 16 to 18 
182.13  years of age who participated in a related school-based job 
182.14  training program or have completed a certified home health aide 
182.15  competency evaluation; 
182.16     (2) is able to effectively communicate with the recipient 
182.17  and personal care provider organization; 
182.18     (3) effective July 1, 1996, has completed one of the 
182.19  training requirements as specified in Minnesota Rules, part 
182.20  9505.0335, subpart 3, items A to D; 
182.21     (4) has the ability to, and provides covered personal 
182.22  care assistant services according to the recipient's care plan, 
182.23  responds appropriately to recipient needs, and reports changes 
182.24  in the recipient's condition to the supervising qualified 
182.25  professional or physician; 
182.26     (5) is not a consumer of personal care assistant services; 
182.27  and 
182.28     (6) is subject to criminal background checks and procedures 
182.29  specified in section 245A.04.  
182.30     (f) (j) "Personal care provider organization" means an 
182.31  organization enrolled to provide personal care assistant 
182.32  services under the medical assistance program that complies with 
182.33  the following:  (1) owners who have a five percent interest or 
182.34  more, and managerial officials are subject to a background study 
182.35  as provided in section 245A.04.  This applies to currently 
182.36  enrolled personal care provider organizations and those agencies 
183.1   seeking enrollment as a personal care provider organization.  An 
183.2   organization will be barred from enrollment if an owner or 
183.3   managerial official of the organization has been convicted of a 
183.4   crime specified in section 245A.04, or a comparable crime in 
183.5   another jurisdiction, unless the owner or managerial official 
183.6   meets the reconsideration criteria specified in section 245A.04; 
183.7   (2) the organization must maintain a surety bond and liability 
183.8   insurance throughout the duration of enrollment and provides 
183.9   proof thereof.  The insurer must notify the department of human 
183.10  services of the cancellation or lapse of policy; and (3) the 
183.11  organization must maintain documentation of services as 
183.12  specified in Minnesota Rules, part 9505.2175, subpart 7, as well 
183.13  as evidence of compliance with personal care assistant training 
183.14  requirements. 
183.15     (g) (k) "Responsible party" means an individual residing 
183.16  with a recipient of personal care assistant services who is 
183.17  capable of providing the supportive care necessary to assist the 
183.18  recipient to live in the community, is at least 18 years old, 
183.19  and is not a personal care assistant.  Responsible parties who 
183.20  are parents of minors or guardians of minors or incapacitated 
183.21  persons may delegate the responsibility to another adult during 
183.22  a temporary absence of at least 24 hours but not more than six 
183.23  months.  The person delegated as a responsible party must be 
183.24  able to meet the definition of responsible party, except that 
183.25  the delegated responsible party is required to reside with the 
183.26  recipient only while serving as the responsible party.  Foster 
183.27  care license holders may be designated the responsible party for 
183.28  residents of the foster care home if case management is provided 
183.29  as required in section 256B.0625, subdivision 19a.  For persons 
183.30  who, as of April 1, 1992, are sharing personal care assistant 
183.31  services in order to obtain the availability of 24-hour 
183.32  coverage, an employee of the personal care provider organization 
183.33  may be designated as the responsible party if case management is 
183.34  provided as required in section 256B.0625, subdivision 19a. 
183.35     (h) (l) "Service plan" means a written description of the 
183.36  services needed based on the assessment developed by the nurse 
184.1   who conducts the assessment together with the recipient or 
184.2   responsible party.  The service plan shall include a description 
184.3   of the covered home care services, frequency and duration of 
184.4   services, and expected outcomes and goals.  The recipient and 
184.5   the provider chosen by the recipient or responsible party must 
184.6   be given a copy of the completed service plan within 30 calendar 
184.7   days of the request for home care services by the recipient or 
184.8   responsible party. 
184.9      (i) (m) "Skilled nurse visits" are provided in a 
184.10  recipient's residence under a plan of care or service plan that 
184.11  specifies a level of care which the nurse is qualified to 
184.12  provide.  These services are: 
184.13     (1) nursing services according to the written plan of care 
184.14  or service plan and accepted standards of medical and nursing 
184.15  practice in accordance with chapter 148; 
184.16     (2) services which due to the recipient's medical condition 
184.17  may only be safely and effectively provided by a registered 
184.18  nurse or a licensed practical nurse; 
184.19     (3) assessments performed only by a registered nurse; and 
184.20     (4) teaching and training the recipient, the recipient's 
184.21  family, or other caregivers requiring the skills of a registered 
184.22  nurse or licensed practical nurse. 
184.23     (n) "Telehomecare" means the use of telecommunications 
184.24  technology by a home health care professional to deliver home 
184.25  health care services, within the professional's scope of 
184.26  practice, to a patient located at a site other than the site 
184.27  where the practitioner is located. 
184.28     <b>[EFFECTIVE DATE.]</b> Paragraph (d) of this section is 
184.29  effective January 1, 2003. 
184.30     Sec. 28.  Minnesota Statutes 2000, section 256B.0627, 
184.31  subdivision 2, is amended to read: 
184.32     Subd. 2.  [SERVICES COVERED.] Home care services covered 
184.33  under this section include:  
184.34     (1) nursing services under section 256B.0625, subdivision 
184.35  6a; 
184.36     (2) private duty nursing services under section 256B.0625, 
185.1   subdivision 7; 
185.2      (3) home health aide services under section 256B.0625, 
185.3   subdivision 6a; 
185.4      (4) personal care assistant services under section 
185.5   256B.0625, subdivision 19a; 
185.6      (5) supervision of personal care assistant services 
185.7   provided by a qualified professional under section 256B.0625, 
185.8   subdivision 19a; 
185.9      (6) consulting qualified professional of personal care 
185.10  assistant services under the fiscal agent intermediary option as 
185.11  specified in subdivision 10; 
185.12     (7) face-to-face assessments by county public health nurses 
185.13  for services under section 256B.0625, subdivision 19a; and 
185.14     (8) service updates and review of temporary increases for 
185.15  personal care assistant services by the county public health 
185.16  nurse for services under section 256B.0625, subdivision 19a. 
185.17     Sec. 29.  Minnesota Statutes 2000, section 256B.0627, 
185.18  subdivision 4, is amended to read: 
185.19     Subd. 4.  [PERSONAL CARE ASSISTANT SERVICES.] (a) The 
185.20  personal care assistant services that are eligible for payment 
185.21  are the following: services and supports furnished to an 
185.22  individual, as needed, to assist in accomplishing activities of 
185.23  daily living; instrumental activities of daily living; 
185.24  health-related functions through hands-on assistance, 
185.25  supervision, and cueing; and redirection and intervention for 
185.26  behavior including observation and monitoring.  
185.27     (b) Payment for services will be made within the limits 
185.28  approved using the prior authorized process established in 
185.29  subdivision 5. 
185.30     (c) The amount and type of services authorized shall be 
185.31  based on an assessment of the recipient's needs in these areas: 
185.32     (1) bowel and bladder care; 
185.33     (2) skin care to maintain the health of the skin; 
185.34     (3) repetitive maintenance range of motion, muscle 
185.35  strengthening exercises, and other tasks specific to maintaining 
185.36  a recipient's optimal level of function; 
186.1      (4) respiratory assistance; 
186.2      (5) transfers and ambulation; 
186.3      (6) bathing, grooming, and hairwashing necessary for 
186.4   personal hygiene; 
186.5      (7) turning and positioning; 
186.6      (8) assistance with furnishing medication that is 
186.7   self-administered; 
186.8      (9) application and maintenance of prosthetics and 
186.9   orthotics; 
186.10     (10) cleaning medical equipment; 
186.11     (11) dressing or undressing; 
186.12     (12) assistance with eating and meal preparation and 
186.13  necessary grocery shopping; 
186.14     (13) accompanying a recipient to obtain medical diagnosis 
186.15  or treatment; 
186.16     (14) assisting, monitoring, or prompting the recipient to 
186.17  complete the services in clauses (1) to (13); 
186.18     (15) redirection, monitoring, and observation that are 
186.19  medically necessary and an integral part of completing the 
186.20  personal care assistant services described in clauses (1) to 
186.21  (14); 
186.22     (16) redirection and intervention for behavior, including 
186.23  observation and monitoring; 
186.24     (17) interventions for seizure disorders, including 
186.25  monitoring and observation if the recipient has had a seizure 
186.26  that requires intervention within the past three months; 
186.27     (18) tracheostomy suctioning using a clean procedure if the 
186.28  procedure is properly delegated by a registered nurse.  Before 
186.29  this procedure can be delegated to a personal care assistant, a 
186.30  registered nurse must determine that the tracheostomy suctioning 
186.31  can be accomplished utilizing a clean rather than a sterile 
186.32  procedure and must ensure that the personal care assistant has 
186.33  been taught the proper procedure; and 
186.34     (19) incidental household services that are an integral 
186.35  part of a personal care service described in clauses (1) to (18).
186.36  For purposes of this subdivision, monitoring and observation 
187.1   means watching for outward visible signs that are likely to 
187.2   occur and for which there is a covered personal care service or 
187.3   an appropriate personal care intervention.  For purposes of this 
187.4   subdivision, a clean procedure refers to a procedure that 
187.5   reduces the numbers of microorganisms or prevents or reduces the 
187.6   transmission of microorganisms from one person or place to 
187.7   another.  A clean procedure may be used beginning 14 days after 
187.8   insertion. 
187.9      (b) (d) The personal care assistant services that are not 
187.10  eligible for payment are the following:  
187.11     (1) services not ordered by the physician; 
187.12     (2) assessments by personal care assistant provider 
187.13  organizations or by independently enrolled registered nurses; 
187.14     (3) services that are not in the service plan; 
187.15     (4) services provided by the recipient's spouse, legal 
187.16  guardian for an adult or child recipient, or parent of a 
187.17  recipient under age 18; 
187.18     (5) services provided by a foster care provider of a 
187.19  recipient who cannot direct the recipient's own care, unless 
187.20  monitored by a county or state case manager under section 
187.21  256B.0625, subdivision 19a; 
187.22     (6) services provided by the residential or program license 
187.23  holder in a residence for more than four persons; 
187.24     (7) services that are the responsibility of a residential 
187.25  or program license holder under the terms of a service agreement 
187.26  and administrative rules; 
187.27     (8) sterile procedures; 
187.28     (9) injections of fluids into veins, muscles, or skin; 
187.29     (10) (9) services provided by parents of adult recipients, 
187.30  adult children, or siblings of the recipient, unless these 
187.31  relatives meet one of the following hardship criteria and the 
187.32  commissioner waives this requirement: 
187.33     (i) the relative resigns from a part-time or full-time job 
187.34  to provide personal care for the recipient; 
187.35     (ii) the relative goes from a full-time to a part-time job 
187.36  with less compensation to provide personal care for the 
188.1   recipient; 
188.2      (iii) the relative takes a leave of absence without pay to 
188.3   provide personal care for the recipient; 
188.4      (iv) the relative incurs substantial expenses by providing 
188.5   personal care for the recipient; or 
188.6      (v) because of labor conditions, special language needs, or 
188.7   intermittent hours of care needed, the relative is needed in 
188.8   order to provide an adequate number of qualified personal care 
188.9   assistants to meet the medical needs of the recipient; 
188.10     (11) (10) homemaker services that are not an integral part 
188.11  of a personal care assistant services; 
188.12     (12) (11) home maintenance, or chore services; 
188.13     (13) (12) services not specified under paragraph (a); and 
188.14     (14) (13) services not authorized by the commissioner or 
188.15  the commissioner's designee. 
188.16     (e) The recipient or responsible party may choose to 
188.17  supervise the personal care assistant or to have a qualified 
188.18  professional, as defined in section 256B.0625, subdivision 19c, 
188.19  provide the supervision.  As required under section 256B.0625, 
188.20  subdivision 19c, the county public health nurse, as a part of 
188.21  the assessment, will consult with the recipient or responsible 
188.22  party to identify the most appropriate person to provide 
188.23  supervision of the personal care assistant.  Health-related 
188.24  delegated tasks performed by the personal care assistant will be 
188.25  under the supervision of a qualified professional or the 
188.26  direction of the recipient's physician.  If the recipient has a 
188.27  qualified professional, Minnesota Rules, part 9505.0335, subpart 
188.28  4, applies. 
188.29     Sec. 30.  Minnesota Statutes 2000, section 256B.0627, 
188.30  subdivision 5, is amended to read: 
188.31     Subd. 5.  [LIMITATION ON PAYMENTS.] Medical assistance 
188.32  payments for home care services shall be limited according to 
188.33  this subdivision.  
188.34     (a)  [LIMITS ON SERVICES WITHOUT PRIOR AUTHORIZATION.] A 
188.35  recipient may receive the following home care services during a 
188.36  calendar year: 
189.1      (1) up to two face-to-face assessments to determine a 
189.2   recipient's need for personal care assistant services; 
189.3      (2) one service update done to determine a recipient's need 
189.4   for personal care assistant services; and 
189.5      (3) up to five nine skilled nurse visits.  
189.6      (b)  [PRIOR AUTHORIZATION; EXCEPTIONS.] All home care 
189.7   services above the limits in paragraph (a) must receive the 
189.8   commissioner's prior authorization, except when: 
189.9      (1) the home care services were required to treat an 
189.10  emergency medical condition that if not immediately treated 
189.11  could cause a recipient serious physical or mental disability, 
189.12  continuation of severe pain, or death.  The provider must 
189.13  request retroactive authorization no later than five working 
189.14  days after giving the initial service.  The provider must be 
189.15  able to substantiate the emergency by documentation such as 
189.16  reports, notes, and admission or discharge histories; 
189.17     (2) the home care services were provided on or after the 
189.18  date on which the recipient's eligibility began, but before the 
189.19  date on which the recipient was notified that the case was 
189.20  opened.  Authorization will be considered if the request is 
189.21  submitted by the provider within 20 working days of the date the 
189.22  recipient was notified that the case was opened; 
189.23     (3) a third-party payor for home care services has denied 
189.24  or adjusted a payment.  Authorization requests must be submitted 
189.25  by the provider within 20 working days of the notice of denial 
189.26  or adjustment.  A copy of the notice must be included with the 
189.27  request; 
189.28     (4) the commissioner has determined that a county or state 
189.29  human services agency has made an error; or 
189.30     (5) the professional nurse determines an immediate need for 
189.31  up to 40 skilled nursing or home health aide visits per calendar 
189.32  year and submits a request for authorization within 20 working 
189.33  days of the initial service date, and medical assistance is 
189.34  determined to be the appropriate payer. 
189.35     (c)  [RETROACTIVE AUTHORIZATION.] A request for retroactive 
189.36  authorization will be evaluated according to the same criteria 
190.1   applied to prior authorization requests.  
190.2      (d)  [ASSESSMENT AND SERVICE PLAN.] Assessments under 
190.3   section 256B.0627, subdivision 1, paragraph (a), shall be 
190.4   conducted initially, and at least annually thereafter, in person 
190.5   with the recipient and result in a completed service plan using 
190.6   forms specified by the commissioner.  Within 30 days of 
190.7   recipient or responsible party request for home care services, 
190.8   the assessment, the service plan, and other information 
190.9   necessary to determine medical necessity such as diagnostic or 
190.10  testing information, social or medical histories, and hospital 
190.11  or facility discharge summaries shall be submitted to the 
190.12  commissioner.  For personal care assistant services: 
190.13     (1) The amount and type of service authorized based upon 
190.14  the assessment and service plan will follow the recipient if the 
190.15  recipient chooses to change providers.  
190.16     (2) If the recipient's medical need changes, the 
190.17  recipient's provider may assess the need for a change in service 
190.18  authorization and request the change from the county public 
190.19  health nurse.  Within 30 days of the request, the public health 
190.20  nurse will determine whether to request the change in services 
190.21  based upon the provider assessment, or conduct a home visit to 
190.22  assess the need and determine whether the change is appropriate. 
190.23     (3) To continue to receive personal care assistant services 
190.24  after the first year, the recipient or the responsible party, in 
190.25  conjunction with the public health nurse, may complete a service 
190.26  update on forms developed by the commissioner according to 
190.27  criteria and procedures in subdivision 1.  
190.28     (e)  [PRIOR AUTHORIZATION.] The commissioner, or the 
190.29  commissioner's designee, shall review the assessment, service 
190.30  update, request for temporary services, service plan, and any 
190.31  additional information that is submitted.  The commissioner 
190.32  shall, within 30 days after receiving a complete request, 
190.33  assessment, and service plan, authorize home care services as 
190.34  follows:  
190.35     (1)  [HOME HEALTH SERVICES.] All home health services 
190.36  provided by a licensed nurse or a home health aide must be prior 
191.1   authorized by the commissioner or the commissioner's designee.  
191.2   Prior authorization must be based on medical necessity and 
191.3   cost-effectiveness when compared with other care options.  When 
191.4   home health services are used in combination with personal care 
191.5   and private duty nursing, the cost of all home care services 
191.6   shall be considered for cost-effectiveness.  The commissioner 
191.7   shall limit nurse and home health aide visits to no more than 
191.8   one visit each per day.  The commissioner, or the commissioner's 
191.9   designee, may authorize up to two skilled nurse visits per day. 
191.10     (2)  [PERSONAL CARE ASSISTANT SERVICES.] (i) All personal 
191.11  care assistant services and supervision by a qualified 
191.12  professional, if requested by the recipient, must be prior 
191.13  authorized by the commissioner or the commissioner's designee 
191.14  except for the assessments established in paragraph (a).  The 
191.15  amount of personal care assistant services authorized must be 
191.16  based on the recipient's home care rating.  A child may not be 
191.17  found to be dependent in an activity of daily living if because 
191.18  of the child's age an adult would either perform the activity 
191.19  for the child or assist the child with the activity and the 
191.20  amount of assistance needed is similar to the assistance 
191.21  appropriate for a typical child of the same age.  Based on 
191.22  medical necessity, the commissioner may authorize: 
191.23     (A) up to two times the average number of direct care hours 
191.24  provided in nursing facilities for the recipient's comparable 
191.25  case mix level; or 
191.26     (B) up to three times the average number of direct care 
191.27  hours provided in nursing facilities for recipients who have 
191.28  complex medical needs or are dependent in at least seven 
191.29  activities of daily living and need physical assistance with 
191.30  eating or have a neurological diagnosis; or 
191.31     (C) up to 60 percent of the average reimbursement rate, as 
191.32  of July 1, 1991, for care provided in a regional treatment 
191.33  center for recipients who have Level I behavior, plus any 
191.34  inflation adjustment as provided by the legislature for personal 
191.35  care service; or 
191.36     (D) up to the amount the commissioner would pay, as of July 
192.1   1, 1991, plus any inflation adjustment provided for home care 
192.2   services, for care provided in a regional treatment center for 
192.3   recipients referred to the commissioner by a regional treatment 
192.4   center preadmission evaluation team.  For purposes of this 
192.5   clause, home care services means all services provided in the 
192.6   home or community that would be included in the payment to a 
192.7   regional treatment center; or 
192.8      (E) up to the amount medical assistance would reimburse for 
192.9   facility care for recipients referred to the commissioner by a 
192.10  preadmission screening team established under section 256B.0911 
192.11  or 256B.092; and 
192.12     (F) a reasonable amount of time for the provision of 
192.13  supervision by a qualified professional of personal 
192.14  care assistant services, if a qualified professional is 
192.15  requested by the recipient or responsible party.  
192.16     (ii) The number of direct care hours shall be determined 
192.17  according to the annual cost report submitted to the department 
192.18  by nursing facilities.  The average number of direct care hours, 
192.19  as established by May 1, 1992, shall be calculated and 
192.20  incorporated into the home care limits on July 1, 1992.  These 
192.21  limits shall be calculated to the nearest quarter hour. 
192.22     (iii) The home care rating shall be determined by the 
192.23  commissioner or the commissioner's designee based on information 
192.24  submitted to the commissioner by the county public health nurse 
192.25  on forms specified by the commissioner.  The home care rating 
192.26  shall be a combination of current assessment tools developed 
192.27  under sections 256B.0911 and 256B.501 with an addition for 
192.28  seizure activity that will assess the frequency and severity of 
192.29  seizure activity and with adjustments, additions, and 
192.30  clarifications that are necessary to reflect the needs and 
192.31  conditions of recipients who need home care including children 
192.32  and adults under 65 years of age.  The commissioner shall 
192.33  establish these forms and protocols under this section and shall 
192.34  use an advisory group, including representatives of recipients, 
192.35  providers, and counties, for consultation in establishing and 
192.36  revising the forms and protocols. 
193.1      (iv) A recipient shall qualify as having complex medical 
193.2   needs if the care required is difficult to perform and because 
193.3   of recipient's medical condition requires more time than 
193.4   community-based standards allow or requires more skill than 
193.5   would ordinarily be required and the recipient needs or has one 
193.6   or more of the following: 
193.7      (A) daily tube feedings; 
193.8      (B) daily parenteral therapy; 
193.9      (C) wound or decubiti care; 
193.10     (D) postural drainage, percussion, nebulizer treatments, 
193.11  suctioning, tracheotomy care, oxygen, mechanical ventilation; 
193.12     (E) catheterization; 
193.13     (F) ostomy care; 
193.14     (G) quadriplegia; or 
193.15     (H) other comparable medical conditions or treatments the 
193.16  commissioner determines would otherwise require institutional 
193.17  care.  
193.18     (v) A recipient shall qualify as having Level I behavior if 
193.19  there is reasonable supporting evidence that the recipient 
193.20  exhibits, or that without supervision, observation, or 
193.21  redirection would exhibit, one or more of the following 
193.22  behaviors that cause, or have the potential to cause: 
193.23     (A) injury to the recipient's own body; 
193.24     (B) physical injury to other people; or 
193.25     (C) destruction of property. 
193.26     (vi) Time authorized for personal care relating to Level I 
193.27  behavior in subclause (v), items (A) to (C), shall be based on 
193.28  the predictability, frequency, and amount of intervention 
193.29  required. 
193.30     (vii) A recipient shall qualify as having Level II behavior 
193.31  if the recipient exhibits on a daily basis one or more of the 
193.32  following behaviors that interfere with the completion of 
193.33  personal care assistant services under subdivision 4, paragraph 
193.34  (a): 
193.35     (A) unusual or repetitive habits; 
193.36     (B) withdrawn behavior; or 
194.1      (C) offensive behavior. 
194.2      (viii) A recipient with a home care rating of Level II 
194.3   behavior in subclause (vii), items (A) to (C), shall be rated as 
194.4   comparable to a recipient with complex medical needs under 
194.5   subclause (iv).  If a recipient has both complex medical needs 
194.6   and Level II behavior, the home care rating shall be the next 
194.7   complex category up to the maximum rating under subclause (i), 
194.8   item (B). 
194.9      (3)  [PRIVATE DUTY NURSING SERVICES.] All private duty 
194.10  nursing services shall be prior authorized by the commissioner 
194.11  or the commissioner's designee.  Prior authorization for private 
194.12  duty nursing services shall be based on medical necessity and 
194.13  cost-effectiveness when compared with alternative care options.  
194.14  The commissioner may authorize medically necessary private duty 
194.15  nursing services in quarter-hour units when: 
194.16     (i) the recipient requires more individual and continuous 
194.17  care than can be provided during a nurse visit; or 
194.18     (ii) the cares are outside of the scope of services that 
194.19  can be provided by a home health aide or personal care assistant.
194.20     The commissioner may authorize: 
194.21     (A) up to two times the average amount of direct care hours 
194.22  provided in nursing facilities statewide for case mix 
194.23  classification "K" as established by the annual cost report 
194.24  submitted to the department by nursing facilities in May 1992; 
194.25     (B) private duty nursing in combination with other home 
194.26  care services up to the total cost allowed under clause (2); 
194.27     (C) up to 16 hours per day if the recipient requires more 
194.28  nursing than the maximum number of direct care hours as 
194.29  established in item (A) and the recipient meets the hospital 
194.30  admission criteria established under Minnesota Rules, parts 
194.31  9505.0500 9505.0501 to 9505.0540.  
194.32     The commissioner may authorize up to 16 hours per day of 
194.33  medically necessary private duty nursing services or up to 24 
194.34  hours per day of medically necessary private duty nursing 
194.35  services until such time as the commissioner is able to make a 
194.36  determination of eligibility for recipients who are 
195.1   cooperatively applying for home care services under the 
195.2   community alternative care program developed under section 
195.3   256B.49, or until it is determined by the appropriate regulatory 
195.4   agency that a health benefit plan is or is not required to pay 
195.5   for appropriate medically necessary health care services.  
195.6   Recipients or their representatives must cooperatively assist 
195.7   the commissioner in obtaining this determination.  Recipients 
195.8   who are eligible for the community alternative care program may 
195.9   not receive more hours of nursing under this section than would 
195.10  otherwise be authorized under section 256B.49.  
195.11     Beginning January 1, 2003, private duty nursing services 
195.12  shall be authorized for complex and regular care according to 
195.13  section 256B.0627. 
195.14     (4)  [VENTILATOR-DEPENDENT RECIPIENTS.] If the recipient is 
195.15  ventilator-dependent, the monthly medical assistance 
195.16  authorization for home care services shall not exceed what the 
195.17  commissioner would pay for care at the highest cost hospital 
195.18  designated as a long-term hospital under the Medicare program.  
195.19  For purposes of this clause, home care services means all 
195.20  services provided in the home that would be included in the 
195.21  payment for care at the long-term hospital.  
195.22  "Ventilator-dependent" means an individual who receives 
195.23  mechanical ventilation for life support at least six hours per 
195.24  day and is expected to be or has been dependent for at least 30 
195.25  consecutive days.  
195.26     (f)  [PRIOR AUTHORIZATION; TIME LIMITS.] The commissioner 
195.27  or the commissioner's designee shall determine the time period 
195.28  for which a prior authorization shall be effective.  If the 
195.29  recipient continues to require home care services beyond the 
195.30  duration of the prior authorization, the home care provider must 
195.31  request a new prior authorization.  Under no circumstances, 
195.32  other than the exceptions in paragraph (b), shall a prior 
195.33  authorization be valid prior to the date the commissioner 
195.34  receives the request or for more than 12 months.  A recipient 
195.35  who appeals a reduction in previously authorized home care 
195.36  services may continue previously authorized services, other than 
196.1   temporary services under paragraph (h), pending an appeal under 
196.2   section 256.045.  The commissioner must provide a detailed 
196.3   explanation of why the authorized services are reduced in amount 
196.4   from those requested by the home care provider.  
196.5      (g)  [APPROVAL OF HOME CARE SERVICES.] The commissioner or 
196.6   the commissioner's designee shall determine the medical 
196.7   necessity of home care services, the level of caregiver 
196.8   according to subdivision 2, and the institutional comparison 
196.9   according to this subdivision, the cost-effectiveness of 
196.10  services, and the amount, scope, and duration of home care 
196.11  services reimbursable by medical assistance, based on the 
196.12  assessment, primary payer coverage determination information as 
196.13  required, the service plan, the recipient's age, the cost of 
196.14  services, the recipient's medical condition, and diagnosis or 
196.15  disability.  The commissioner may publish additional criteria 
196.16  for determining medical necessity according to section 256B.04. 
196.17     (h)  [PRIOR AUTHORIZATION REQUESTS; TEMPORARY SERVICES.] 
196.18  The agency nurse, the independently enrolled private duty nurse, 
196.19  or county public health nurse may request a temporary 
196.20  authorization for home care services by telephone.  The 
196.21  commissioner may approve a temporary level of home care services 
196.22  based on the assessment, and service or care plan information, 
196.23  and primary payer coverage determination information as required.
196.24  Authorization for a temporary level of home care services 
196.25  including nurse supervision is limited to the time specified by 
196.26  the commissioner, but shall not exceed 45 days, unless extended 
196.27  because the county public health nurse has not completed the 
196.28  required assessment and service plan, or the commissioner's 
196.29  determination has not been made.  The level of services 
196.30  authorized under this provision shall have no bearing on a 
196.31  future prior authorization. 
196.32     (i)  [PRIOR AUTHORIZATION REQUIRED IN FOSTER CARE SETTING.] 
196.33  Home care services provided in an adult or child foster care 
196.34  setting must receive prior authorization by the department 
196.35  according to the limits established in paragraph (a). 
196.36     The commissioner may not authorize: 
197.1      (1) home care services that are the responsibility of the 
197.2   foster care provider under the terms of the foster care 
197.3   placement agreement and administrative rules; 
197.4      (2) personal care assistant services when the foster care 
197.5   license holder is also the personal care provider or personal 
197.6   care assistant unless the recipient can direct the recipient's 
197.7   own care, or case management is provided as required in section 
197.8   256B.0625, subdivision 19a; 
197.9      (3) personal care assistant services when the responsible 
197.10  party is an employee of, or under contract with, or has any 
197.11  direct or indirect financial relationship with the personal care 
197.12  provider or personal care assistant, unless case management is 
197.13  provided as required in section 256B.0625, subdivision 19a; or 
197.14     (4) personal care assistant and private duty nursing 
197.15  services when the number of foster care residents is greater 
197.16  than four unless the county responsible for the recipient's 
197.17  foster placement made the placement prior to April 1, 1992, 
197.18  requests that personal care assistant and private duty nursing 
197.19  services be provided, and case management is provided as 
197.20  required in section 256B.0625, subdivision 19a. 
197.21     Sec. 31.  Minnesota Statutes 2000, section 256B.0627, 
197.22  subdivision 7, is amended to read: 
197.23     Subd. 7.  [NONCOVERED HOME CARE SERVICES.] The following 
197.24  home care services are not eligible for payment under medical 
197.25  assistance:  
197.26     (1) skilled nurse visits for the sole purpose of 
197.27  supervision of the home health aide; 
197.28     (2) a skilled nursing visit: 
197.29     (i) only for the purpose of monitoring medication 
197.30  compliance with an established medication program for a 
197.31  recipient; or 
197.32     (ii) to administer or assist with medication 
197.33  administration, including injections, prefilling syringes for 
197.34  injections, or oral medication set-up of an adult recipient, 
197.35  when as determined and documented by the registered nurse, the 
197.36  need can be met by an available pharmacy or the recipient is 
198.1   physically and mentally able to self-administer or prefill a 
198.2   medication; 
198.3      (3) home care services to a recipient who is eligible for 
198.4   covered services including hospice, if elected by the recipient, 
198.5   under the Medicare program or any other insurance held by the 
198.6   recipient; 
198.7      (4) services to other members of the recipient's household; 
198.8      (5) a visit made by a skilled nurse solely to train other 
198.9   home health agency workers; 
198.10     (6) any home care service included in the daily rate of the 
198.11  community-based residential facility where the recipient is 
198.12  residing; 
198.13     (7) nursing and rehabilitation therapy services that are 
198.14  reasonably accessible to a recipient outside the recipient's 
198.15  place of residence, excluding the assessment, counseling and 
198.16  education, and personal assistant care; 
198.17     (8) any home health agency service, excluding personal care 
198.18  assistant services and private duty nursing services, which are 
198.19  performed in a place other than the recipient's residence; and 
198.20     (9) Medicare evaluation or administrative nursing visits on 
198.21  dual-eligible recipients that do not qualify for Medicare visit 
198.22  billing. 
198.23     Sec. 32.  Minnesota Statutes 2000, section 256B.0627, 
198.24  subdivision 8, is amended to read: 
198.25     Subd. 8.  [SHARED PERSONAL CARE ASSISTANT SERVICES.] (a) 
198.26  Medical assistance payments for shared personal care assistance 
198.27  services shall be limited according to this subdivision. 
198.28     (b) Recipients of personal care assistant services may 
198.29  share staff and the commissioner shall provide a rate system for 
198.30  shared personal care assistant services.  For two persons 
198.31  sharing services, the rate paid to a provider shall not exceed 
198.32  1-1/2 times the rate paid for serving a single individual, and 
198.33  for three persons sharing services, the rate paid to a provider 
198.34  shall not exceed twice the rate paid for serving a single 
198.35  individual.  These rates apply only to situations in which all 
198.36  recipients were present and received shared services on the date 
199.1   for which the service is billed.  No more than three persons may 
199.2   receive shared services from a personal care assistant in a 
199.3   single setting. 
199.4      (c) Shared service is the provision of personal 
199.5   care assistant services by a personal care assistant to two or 
199.6   three recipients at the same time and in the same setting.  For 
199.7   the purposes of this subdivision, "setting" means: 
199.8      (1) the home or foster care home of one of the individual 
199.9   recipients; or 
199.10     (2) a child care program in which all recipients served by 
199.11  one personal care assistant are participating, which is licensed 
199.12  under chapter 245A or operated by a local school district or 
199.13  private school; or 
199.14     (3) outside the home or foster care home of one of the 
199.15  recipients when normal life activities take the recipients 
199.16  outside the home.  
199.17     The provisions of this subdivision do not apply when a 
199.18  personal care assistant is caring for multiple recipients in 
199.19  more than one setting. 
199.20     (d) The recipient or the recipient's responsible party, in 
199.21  conjunction with the county public health nurse, shall determine:
199.22     (1) whether shared personal care assistant services is an 
199.23  appropriate option based on the individual needs and preferences 
199.24  of the recipient; and 
199.25     (2) the amount of shared services allocated as part of the 
199.26  overall authorization of personal care assistant services. 
199.27     The recipient or the responsible party, in conjunction with 
199.28  the supervising qualified professional, if a qualified 
199.29  professional is requested by any one of the recipients or 
199.30  responsible parties, shall arrange the setting and grouping of 
199.31  shared services based on the individual needs and preferences of 
199.32  the recipients.  Decisions on the selection of recipients to 
199.33  share services must be based on the ages of the recipients, 
199.34  compatibility, and coordination of their care needs. 
199.35     (e) The following items must be considered by the recipient 
199.36  or the responsible party and the supervising qualified 
200.1   professional, if a qualified professional has been requested by 
200.2   any one of the recipients or responsible parties, and documented 
200.3   in the recipient's health service record: 
200.4      (1) the additional qualifications needed by the personal 
200.5   care assistant to provide care to several recipients in the same 
200.6   setting; 
200.7      (2) the additional training and supervision needed by the 
200.8   personal care assistant to ensure that the needs of the 
200.9   recipient are met appropriately and safely.  The provider must 
200.10  provide on-site supervision by a qualified professional within 
200.11  the first 14 days of shared services, and monthly thereafter, if 
200.12  supervision by a qualified provider has been requested by any 
200.13  one of the recipients or responsible parties; 
200.14     (3) the setting in which the shared services will be 
200.15  provided; 
200.16     (4) the ongoing monitoring and evaluation of the 
200.17  effectiveness and appropriateness of the service and process 
200.18  used to make changes in service or setting; and 
200.19     (5) a contingency plan which accounts for absence of the 
200.20  recipient in a shared services setting due to illness or other 
200.21  circumstances and staffing contingencies. 
200.22     (f) The provider must offer the recipient or the 
200.23  responsible party the option of shared or one-on-one personal 
200.24  care assistant services.  The recipient or the responsible party 
200.25  can withdraw from participating in a shared services arrangement 
200.26  at any time. 
200.27     (g) In addition to documentation requirements under 
200.28  Minnesota Rules, part 9505.2175, a personal care provider must 
200.29  meet documentation requirements for shared personal care 
200.30  assistant services and must document the following in the health 
200.31  service record for each individual recipient sharing services: 
200.32     (1) permission by the recipient or the recipient's 
200.33  responsible party, if any, for the maximum number of shared 
200.34  services hours per week chosen by the recipient; 
200.35     (2) permission by the recipient or the recipient's 
200.36  responsible party, if any, for personal care assistant services 
201.1   provided outside the recipient's residence; 
201.2      (3) permission by the recipient or the recipient's 
201.3   responsible party, if any, for others to receive shared services 
201.4   in the recipient's residence; 
201.5      (4) revocation by the recipient or the recipient's 
201.6   responsible party, if any, of the shared service authorization, 
201.7   or the shared service to be provided to others in the 
201.8   recipient's residence, or the shared service to be provided 
201.9   outside the recipient's residence; 
201.10     (5) supervision of the shared personal care assistant 
201.11  services by the qualified professional, if a qualified 
201.12  professional is requested by one of the recipients or 
201.13  responsible parties, including the date, time of day, number of 
201.14  hours spent supervising the provision of shared services, 
201.15  whether the supervision was face-to-face or another method of 
201.16  supervision, changes in the recipient's condition, shared 
201.17  services scheduling issues and recommendations; 
201.18     (6) documentation by the qualified professional, if a 
201.19  qualified professional is requested by one of the recipients or 
201.20  responsible parties, of telephone calls or other discussions 
201.21  with the personal care assistant regarding services being 
201.22  provided to the recipient who has requested the supervision; and 
201.23     (7) daily documentation of the shared services provided by 
201.24  each identified personal care assistant including: 
201.25     (i) the names of each recipient receiving shared services 
201.26  together; 
201.27     (ii) the setting for the shared services, including the 
201.28  starting and ending times that the recipient received shared 
201.29  services; and 
201.30     (iii) notes by the personal care assistant regarding 
201.31  changes in the recipient's condition, problems that may arise 
201.32  from the sharing of services, scheduling issues, care issues, 
201.33  and other notes as required by the qualified professional, if a 
201.34  qualified professional is requested by one of the recipients or 
201.35  responsible parties. 
201.36     (h) Unless otherwise provided in this subdivision, all 
202.1   other statutory and regulatory provisions relating to personal 
202.2   care assistant services apply to shared services. 
202.3      (i) In the event that supervision by a qualified 
202.4   professional has been requested by one or more recipients, but 
202.5   not by all of the recipients, the supervision duties of the 
202.6   qualified professional shall be limited to only those recipients 
202.7   who have requested the supervision. 
202.8      Nothing in this subdivision shall be construed to reduce 
202.9   the total number of hours authorized for an individual recipient.
202.10     Sec. 33.  Minnesota Statutes 2000, section 256B.0627, 
202.11  subdivision 10, is amended to read: 
202.12     Subd. 10.  [FISCAL AGENT INTERMEDIARY OPTION AVAILABLE FOR 
202.13  PERSONAL CARE ASSISTANT SERVICES.] (a) "Fiscal agent option" is 
202.14  an option that allows the recipient to: 
202.15     (1) use a fiscal agent instead of a personal care provider 
202.16  organization; 
202.17     (2) supervise the personal care assistant; and 
202.18     (3) use a consulting professional. 
202.19     The commissioner may allow a recipient of personal care 
202.20  assistant services to use a fiscal agent intermediary to assist 
202.21  the recipient in paying and accounting for medically necessary 
202.22  covered personal care assistant services authorized in 
202.23  subdivision 4 and within the payment parameters of subdivision 
202.24  5.  Unless otherwise provided in this subdivision, all other 
202.25  statutory and regulatory provisions relating to personal care 
202.26  assistant services apply to a recipient using the fiscal agent 
202.27  intermediary option. 
202.28     (b) The recipient or responsible party shall: 
202.29     (1) hire, and terminate the personal care assistant and 
202.30  consulting professional, with the fiscal agent recruit, hire, 
202.31  and terminate a qualified professional, if a qualified 
202.32  professional is requested by the recipient or responsible party; 
202.33     (2) recruit the personal care assistant and consulting 
202.34  professional and orient and train the personal care assistant in 
202.35  areas that do not require professional delegation as determined 
202.36  by the county public health nurse verify and document the 
203.1   credentials of the qualified professional, if a qualified 
203.2   professional is requested by the recipient or responsible party; 
203.3      (3) supervise and evaluate the personal care assistant in 
203.4   areas that do not require professional delegation as determined 
203.5   in the assessment; 
203.6      (4) cooperate with a consulting develop a service plan 
203.7   based on physician orders and public health nurse assessment 
203.8   with the assistance of a qualified professional and implement 
203.9   recommendations pertaining to the health and safety of the 
203.10  recipient, if a qualified professional is requested by the 
203.11  recipient or responsible party, that addresses the health and 
203.12  safety of the recipient; 
203.13     (5) hire a qualified professional to train and supervise 
203.14  the performance of delegated tasks done by (4) recruit, hire, 
203.15  and terminate the personal care assistant; 
203.16     (6) monitor services and verify in writing the hours worked 
203.17  by the personal care assistant and the consulting (5) orient and 
203.18  train the personal care assistant with assistance as needed from 
203.19  the qualified professional; 
203.20     (7) develop and revise a care plan with assistance from a 
203.21  consulting (6) supervise and evaluate the personal care 
203.22  assistant with assistance as needed from the recipient's 
203.23  physician or the qualified professional; 
203.24     (8) verify and document the credentials of the consulting 
203.25  (7) monitor and verify in writing and report to the fiscal 
203.26  intermediary the number of hours worked by the personal care 
203.27  assistant and the qualified professional; and 
203.28     (9) (8) enter into a written agreement, as specified in 
203.29  paragraph (f). 
203.30     (c) The duties of the fiscal agent intermediary shall be to:
203.31     (1) bill the medical assistance program for personal care 
203.32  assistant and consulting qualified professional services; 
203.33     (2) request and secure background checks on personal care 
203.34  assistants and consulting qualified professionals according to 
203.35  section 245A.04; 
203.36     (3) pay the personal care assistant and consulting 
204.1   qualified professional based on actual hours of services 
204.2   provided; 
204.3      (4) withhold and pay all applicable federal and state 
204.4   taxes; 
204.5      (5) verify and document keep records hours worked by the 
204.6   personal care assistant and consulting qualified professional; 
204.7      (6) make the arrangements and pay unemployment insurance, 
204.8   taxes, workers' compensation, liability insurance, and other 
204.9   benefits, if any; 
204.10     (7) enroll in the medical assistance program as a fiscal 
204.11  agent intermediary; and 
204.12     (8) enter into a written agreement as specified in 
204.13  paragraph (f) before services are provided. 
204.14     (d) The fiscal agent intermediary: 
204.15     (1) may not be related to the recipient, consulting 
204.16  qualified professional, or the personal care assistant; 
204.17     (2) must ensure arm's length transactions with the 
204.18  recipient and personal care assistant; and 
204.19     (3) shall be considered a joint employer of the personal 
204.20  care assistant and consulting qualified professional to the 
204.21  extent specified in this section. 
204.22     The fiscal agent intermediary or owners of the entity that 
204.23  provides fiscal agent intermediary services under this 
204.24  subdivision must pass a criminal background check as required in 
204.25  section 256B.0627, subdivision 1, paragraph (e). 
204.26     (e) If the recipient or responsible party requests a 
204.27  qualified professional, the consulting qualified professional 
204.28  providing assistance to the recipient shall meet the 
204.29  qualifications specified in section 256B.0625, subdivision 19c.  
204.30  The consulting qualified professional shall assist the recipient 
204.31  in developing and revising a plan to meet the 
204.32  recipient's assessed needs, and supervise the performance of 
204.33  delegated tasks, as determined by the public health nurse as 
204.34  assessed by the public health nurse.  In performing this 
204.35  function, the consulting qualified professional must visit the 
204.36  recipient in the recipient's home at least once annually.  
205.1   The consulting qualified professional must report to the local 
205.2   county public health nurse concerns relating to the health and 
205.3   safety of the recipient, and any suspected abuse, neglect, or 
205.4   financial exploitation of the recipient to the appropriate 
205.5   authorities.  
205.6      (f) The fiscal agent intermediary, recipient or responsible 
205.7   party, personal care assistant, and consulting qualified 
205.8   professional shall enter into a written agreement before 
205.9   services are started.  The agreement shall include: 
205.10     (1) the duties of the recipient, qualified professional, 
205.11  personal care assistant, and fiscal agent based on paragraphs 
205.12  (a) to (e); 
205.13     (2) the salary and benefits for the personal care assistant 
205.14  and those providing professional consultation the qualified 
205.15  professional; 
205.16     (3) the administrative fee of the fiscal agent intermediary 
205.17  and services paid for with that fee, including background check 
205.18  fees; 
205.19     (4) procedures to respond to billing or payment complaints; 
205.20  and 
205.21     (5) procedures for hiring and terminating the personal care 
205.22  assistant and those providing professional consultation the 
205.23  qualified professional. 
205.24     (g) The rates paid for personal care assistant services, 
205.25  qualified professional assistance services, and fiscal agency 
205.26  intermediary services under this subdivision shall be the same 
205.27  rates paid for personal care assistant services and qualified 
205.28  professional services under subdivision 2 respectively.  Except 
205.29  for the administrative fee of the fiscal agent intermediary 
205.30  specified in paragraph (f), the remainder of the rates paid to 
205.31  the fiscal agent intermediary must be used to pay for the salary 
205.32  and benefits for the personal care assistant or those providing 
205.33  professional consultation the qualified professional. 
205.34     (h) As part of the assessment defined in subdivision 1, the 
205.35  following conditions must be met to use or continue use of a 
205.36  fiscal agent intermediary: 
206.1      (1) the recipient must be able to direct the recipient's 
206.2   own care, or the responsible party for the recipient must be 
206.3   readily available to direct the care of the personal care 
206.4   assistant; 
206.5      (2) the recipient or responsible party must be 
206.6   knowledgeable of the health care needs of the recipient and be 
206.7   able to effectively communicate those needs; 
206.8      (3) a face-to-face assessment must be conducted by the 
206.9   local county public health nurse at least annually, or when 
206.10  there is a significant change in the recipient's condition or 
206.11  change in the need for personal care assistant services.  The 
206.12  county public health nurse shall determine the services that 
206.13  require professional delegation, if any, and the amount and 
206.14  frequency of related supervision; 
206.15     (4) the recipient cannot select the shared services option 
206.16  as specified in subdivision 8; and 
206.17     (5) parties must be in compliance with the written 
206.18  agreement specified in paragraph (f). 
206.19     (i) The commissioner shall deny, revoke, or suspend the 
206.20  authorization to use the fiscal agent intermediary option if: 
206.21     (1) it has been determined by the consulting qualified 
206.22  professional or local county public health nurse that the use of 
206.23  this option jeopardizes the recipient's health and safety; 
206.24     (2) the parties have failed to comply with the written 
206.25  agreement specified in paragraph (f); or 
206.26     (3) the use of the option has led to abusive or fraudulent 
206.27  billing for personal care assistant services.  
206.28     The recipient or responsible party may appeal the 
206.29  commissioner's action according to section 256.045.  The denial, 
206.30  revocation, or suspension to use the fiscal agent intermediary 
206.31  option shall not affect the recipient's authorized level of 
206.32  personal care assistant services as determined in subdivision 5. 
206.33     Sec. 34.  Minnesota Statutes 2000, section 256B.0627, 
206.34  subdivision 11, is amended to read: 
206.35     Subd. 11.  [SHARED PRIVATE DUTY NURSING CARE OPTION.] (a) 
206.36  Medical assistance payments for shared private duty nursing 
207.1   services by a private duty nurse shall be limited according to 
207.2   this subdivision.  For the purposes of this section, "private 
207.3   duty nursing agency" means an agency licensed under chapter 144A 
207.4   to provide private duty nursing services. 
207.5      (b) Recipients of private duty nursing services may share 
207.6   nursing staff and the commissioner shall provide a rate 
207.7   methodology for shared private duty nursing.  For two persons 
207.8   sharing nursing care, the rate paid to a provider shall not 
207.9   exceed 1.5 times the nonwaivered regular private duty nursing 
207.10  rates paid for serving a single individual who is not ventilator 
207.11  dependent, by a registered nurse or licensed practical nurse.  
207.12  These rates apply only to situations in which both recipients 
207.13  are present and receive shared private duty nursing care on the 
207.14  date for which the service is billed.  No more than two persons 
207.15  may receive shared private duty nursing services from a private 
207.16  duty nurse in a single setting. 
207.17     (c) Shared private duty nursing care is the provision of 
207.18  nursing services by a private duty nurse to two recipients at 
207.19  the same time and in the same setting.  For the purposes of this 
207.20  subdivision, "setting" means: 
207.21     (1) the home or foster care home of one of the individual 
207.22  recipients; or 
207.23     (2) a child care program licensed under chapter 245A or 
207.24  operated by a local school district or private school; or 
207.25     (3) an adult day care service licensed under chapter 245A; 
207.26  or 
207.27     (4) outside the home or foster care home of one of the 
207.28  recipients when normal life activities take the recipients 
207.29  outside the home.  
207.30     This subdivision does not apply when a private duty nurse 
207.31  is caring for multiple recipients in more than one setting. 
207.32     (d) The recipient or the recipient's legal representative, 
207.33  and the recipient's physician, in conjunction with the home 
207.34  health care agency, shall determine: 
207.35     (1) whether shared private duty nursing care is an 
207.36  appropriate option based on the individual needs and preferences 
208.1   of the recipient; and 
208.2      (2) the amount of shared private duty nursing services 
208.3   authorized as part of the overall authorization of nursing 
208.4   services. 
208.5      (e) The recipient or the recipient's legal representative, 
208.6   in conjunction with the private duty nursing agency, shall 
208.7   approve the setting, grouping, and arrangement of shared private 
208.8   duty nursing care based on the individual needs and preferences 
208.9   of the recipients.  Decisions on the selection of recipients to 
208.10  share services must be based on the ages of the recipients, 
208.11  compatibility, and coordination of their care needs. 
208.12     (f) The following items must be considered by the recipient 
208.13  or the recipient's legal representative and the private duty 
208.14  nursing agency, and documented in the recipient's health service 
208.15  record: 
208.16     (1) the additional training needed by the private duty 
208.17  nurse to provide care to two recipients in the same setting and 
208.18  to ensure that the needs of the recipients are met appropriately 
208.19  and safely; 
208.20     (2) the setting in which the shared private duty nursing 
208.21  care will be provided; 
208.22     (3) the ongoing monitoring and evaluation of the 
208.23  effectiveness and appropriateness of the service and process 
208.24  used to make changes in service or setting; 
208.25     (4) a contingency plan which accounts for absence of the 
208.26  recipient in a shared private duty nursing setting due to 
208.27  illness or other circumstances; 
208.28     (5) staffing backup contingencies in the event of employee 
208.29  illness or absence; and 
208.30     (6) arrangements for additional assistance to respond to 
208.31  urgent or emergency care needs of the recipients. 
208.32     (g) The provider must offer the recipient or responsible 
208.33  party the option of shared or one-on-one private duty nursing 
208.34  services.  The recipient or responsible party can withdraw from 
208.35  participating in a shared service arrangement at any time. 
208.36     (h) The private duty nursing agency must document the 
209.1   following in the health service record for each individual 
209.2   recipient sharing private duty nursing care: 
209.3      (1) permission by the recipient or the recipient's legal 
209.4   representative for the maximum number of shared nursing care 
209.5   hours per week chosen by the recipient; 
209.6      (2) permission by the recipient or the recipient's legal 
209.7   representative for shared private duty nursing services provided 
209.8   outside the recipient's residence; 
209.9      (3) permission by the recipient or the recipient's legal 
209.10  representative for others to receive shared private duty nursing 
209.11  services in the recipient's residence; 
209.12     (4) revocation by the recipient or the recipient's legal 
209.13  representative of the shared private duty nursing care 
209.14  authorization, or the shared care to be provided to others in 
209.15  the recipient's residence, or the shared private duty nursing 
209.16  services to be provided outside the recipient's residence; and 
209.17     (5) daily documentation of the shared private duty nursing 
209.18  services provided by each identified private duty nurse, 
209.19  including: 
209.20     (i) the names of each recipient receiving shared private 
209.21  duty nursing services together; 
209.22     (ii) the setting for the shared services, including the 
209.23  starting and ending times that the recipient received shared 
209.24  private duty nursing care; and 
209.25     (iii) notes by the private duty nurse regarding changes in 
209.26  the recipient's condition, problems that may arise from the 
209.27  sharing of private duty nursing services, and scheduling and 
209.28  care issues. 
209.29     (i) Unless otherwise provided in this subdivision, all 
209.30  other statutory and regulatory provisions relating to private 
209.31  duty nursing services apply to shared private duty nursing 
209.32  services. 
209.33     Nothing in this subdivision shall be construed to reduce 
209.34  the total number of private duty nursing hours authorized for an 
209.35  individual recipient under subdivision 5. 
209.36     Sec. 35.  Minnesota Statutes 2000, section 256B.0627, is 
210.1   amended by adding a subdivision to read: 
210.2      Subd. 13.  [CONSUMER-DIRECTED HOME CARE DEMONSTRATION 
210.3   PROJECT.] (a) Upon the receipt of federal waiver authority, the 
210.4   commissioner shall implement a consumer-directed home care 
210.5   demonstration project.  The consumer-directed home care 
210.6   demonstration project must demonstrate and evaluate the outcomes 
210.7   of a consumer-directed service delivery alternative to improve 
210.8   access, increase consumer control and accountability over 
210.9   available resources, and enable the use of supports that are 
210.10  more individualized and cost-effective for eligible medical 
210.11  assistance recipients receiving certain medical assistance home 
210.12  care services.  The consumer-directed home care demonstration 
210.13  project will be administered locally by county agencies, tribal 
210.14  governments, or administrative entities under contract with the 
210.15  state in regions where counties choose not to provide this 
210.16  service. 
210.17     (b) Grant awards for persons who have been receiving 
210.18  medical assistance covered personal care, home health aide, or 
210.19  private duty nursing services for a period of 12 consecutive 
210.20  months or more prior to enrollment in the consumer-directed home 
210.21  care demonstration project will be established on a case-by-case 
210.22  basis using historical service expenditure data.  An average 
210.23  monthly expenditure for each continuing enrollee will be 
210.24  calculated based on historical expenditures made on behalf of 
210.25  the enrollee for personal care, home health aide, or private 
210.26  duty nursing services during the 12 month period directly prior 
210.27  to enrollment in the project.  The grant award will equal 90 
210.28  percent of the average monthly expenditure. 
210.29     (c) Grant awards for project enrollees who have been 
210.30  receiving medical assistance covered personal care, home health 
210.31  aide, or private duty nursing services for a period of less than 
210.32  12 consecutive months prior to project enrollment will be 
210.33  calculated on a case-by-case basis using the service 
210.34  authorization in place at the time of enrollment.  The total 
210.35  number of units of personal care, home health aide, or private 
210.36  duty nursing services the enrollee has been authorized to 
211.1   receive will be converted to the total cost of the authorized 
211.2   services in a given month using the statewide average service 
211.3   payment rates.  To determine an estimated monthly expenditure, 
211.4   the total authorized monthly personal care, home health aide or 
211.5   private duty nursing service costs will be reduced by a 
211.6   percentage rate equivalent to the difference between the 
211.7   statewide average service authorization and the statewide 
211.8   average utilization rate for each of the services by medical 
211.9   assistance eligibles during the most recent fiscal year for 
211.10  which 12 months of data is available.  The grant award will 
211.11  equal 90 percent of the estimated monthly expenditure. 
211.12     Sec. 36.  Minnesota Statutes 2000, section 256B.0627, is 
211.13  amended by adding a subdivision to read: 
211.14     Subd. 14.  [TELEHOMECARE; SKILLED NURSE VISITS.] Medical 
211.15  assistance covers skilled nurse visits according to section 
211.16  256B.0625, subdivision 6a, provided via telehomecare, for 
211.17  services which do not require hands-on care between the home 
211.18  care nurse and recipient.  The provision of telehomecare must be 
211.19  made via live, two-way interactive audiovisual technology and 
211.20  may be augmented by utilizing store-and-forward technologies.  
211.21  Store-and-forward technology includes telehomecare services that 
211.22  do not occur in real time via synchronous transmissions, and 
211.23  that do not require a face-to-face encounter with the recipient 
211.24  for all or any part of any such telehomecare visit.  A 
211.25  communication between the home care nurse and recipient that 
211.26  consists solely of a telephone conversation, facsimile, 
211.27  electronic mail, or a consultation between two health care 
211.28  practitioners, is not to be considered a telehomecare visit.  
211.29  Multiple daily skilled nurse visits provided via telehomecare 
211.30  are allowed.  Coverage of telehomecare is limited to two visits 
211.31  per day.  All skilled nurse visits provided via telehomecare 
211.32  must be prior authorized by the commissioner or the 
211.33  commissioner's designee and will be covered at the same 
211.34  allowable rate as skilled nurse visits provided in-person. 
211.35     Sec. 37.  Minnesota Statutes 2000, section 256B.0627, is 
211.36  amended by adding a subdivision to read: 
212.1      Subd. 15.  [THERAPIES THROUGH HOME HEALTH AGENCIES.] (a)  
212.2   [PHYSICAL THERAPY.] Medical assistance covers physical therapy 
212.3   and related services, including specialized maintenance 
212.4   therapy.  Services provided by a physical therapy assistant 
212.5   shall be reimbursed at the same rate as services performed by a 
212.6   physical therapist when the services of the physical therapy 
212.7   assistant are provided under the direction of a physical 
212.8   therapist who is on the premises.  Services provided by a 
212.9   physical therapy assistant that are provided under the direction 
212.10  of a physical therapist who is not on the premises shall be 
212.11  reimbursed at 65 percent of the physical therapist rate.  
212.12  Direction of the physical therapy assistant must be provided by 
212.13  the physical therapist as described in Minnesota Rules, part 
212.14  9505.0390, subpart 1, item B.  The physical therapist and 
212.15  physical therapist assistant may not both bill for services 
212.16  provided to a recipient on the same day. 
212.17     (b)  [OCCUPATIONAL THERAPY.] Medical assistance covers 
212.18  occupational therapy and related services, including specialized 
212.19  maintenance therapy.  Services provided by an occupational 
212.20  therapy assistant shall be reimbursed at the same rate as 
212.21  services performed by an occupational therapist when the 
212.22  services of the occupational therapy assistant are provided 
212.23  under the direction of the occupational therapist who is on the 
212.24  premises.  Services provided by an occupational therapy 
212.25  assistant under the direction of an occupational therapist who 
212.26  is not on the premises shall be reimbursed at 65 percent of the 
212.27  occupational therapist rate.  Direction of the occupational 
212.28  therapy assistant must be provided by the occupational therapist 
212.29  as described in Minnesota Rules, part 9505.0390, subpart 1, item 
212.30  B.  The occupational therapist and occupational therapist 
212.31  assistant may not both bill for services provided to a recipient 
212.32  on the same day. 
212.33     Sec. 38.  Minnesota Statutes 2000, section 256B.0627, is 
212.34  amended by adding a subdivision to read: 
212.35     Subd. 16.  [HARDSHIP CRITERIA; PRIVATE DUTY NURSING.] (a) 
212.36  Payment is allowed for extraordinary services that require 
213.1   specialized nursing skills and are provided by parents of minor 
213.2   children, spouses, and legal guardians who are providing private 
213.3   duty nursing care under the following conditions: 
213.4      (1) the provision of these services is not legally required 
213.5   of the parents, spouses, or legal guardians; 
213.6      (2) the services are necessary to prevent hospitalization 
213.7   of the recipient; and 
213.8      (3) the recipient is eligible for state plan home care or a 
213.9   home and community-based waiver and one of the following 
213.10  hardship criteria are met: 
213.11     (i) the parent, spouse, or legal guardian resigns from a 
213.12  part-time or full-time job to provide nursing care for the 
213.13  recipient; or 
213.14     (ii) the parent, spouse, or legal guardian goes from a 
213.15  full-time to a part-time job with less compensation to provide 
213.16  nursing care for the recipient; or 
213.17     (iii) the parent, spouse, or legal guardian takes a leave 
213.18  of absence without pay to provide nursing care for the 
213.19  recipient; or 
213.20     (iv) because of labor conditions, special language needs, 
213.21  or intermittent hours of care needed, the parent, spouse, or 
213.22  legal guardian is needed in order to provide adequate private 
213.23  duty nursing services to meet the medical needs of the recipient.
213.24     (b) Private duty nursing may be provided by a parent, 
213.25  spouse, or legal guardian who is a nurse licensed in Minnesota.  
213.26  Private duty nursing services provided by a parent, spouse, or 
213.27  legal guardian cannot be used in lieu of nursing services 
213.28  covered and available under liable third-party payors, including 
213.29  Medicare.  The private duty nursing provided by a parent, 
213.30  spouse, or legal guardian must be included in the service plan.  
213.31  Authorized skilled nursing services provided by the parent, 
213.32  spouse, or legal guardian may not exceed 50 percent of the total 
213.33  approved nursing hours, or eight hours per day, whichever is 
213.34  less, up to a maximum of 40 hours per week.  Nothing in this 
213.35  subdivision precludes the parent's, spouse's, or legal 
213.36  guardian's obligation of assuming the nonreimbursed family 
214.1   responsibilities of emergency backup caregiver and primary 
214.2   caregiver. 
214.3      (c) A parent or a spouse may not be paid to provide private 
214.4   duty nursing care if the parent or spouse fails to pass a 
214.5   criminal background check according to section 245A.04, or if it 
214.6   has been determined by the home health agency, the case manager, 
214.7   or the physician that the private duty nursing care provided by 
214.8   the parent, spouse, or legal guardian is unsafe. 
214.9      Sec. 39.  Minnesota Statutes 2000, section 256B.0627, is 
214.10  amended by adding a subdivision to read: 
214.11     Subd. 17.  [QUALITY ASSURANCE PLAN FOR PERSONAL CARE 
214.12  ASSISTANT SERVICES.] The commissioner shall establish a quality 
214.13  assurance plan for personal care assistant services that 
214.14  includes: 
214.15     (1) performance-based provider agreements; 
214.16     (2) meaningful consumer input, which may include consumer 
214.17  surveys, that measure the extent to which participants receive 
214.18  the services and supports described in the individual plan and 
214.19  participant satisfaction with such services and supports; 
214.20     (3) ongoing monitoring of the health and well-being of 
214.21  consumers; and 
214.22     (4) an ongoing public process for development, 
214.23  implementation, and review of the quality assurance plan.  
214.24     Sec. 40.  Minnesota Statutes 2000, section 256B.0911, is 
214.25  amended by adding a subdivision to read: 
214.26     Subd. 4a.  [PREADMISSION SCREENING OF INDIVIDUALS UNDER 65 
214.27  YEARS OF AGE.] (a) It is the policy of the state of Minnesota to 
214.28  ensure that individuals with disabilities or chronic illness are 
214.29  served in the most integrated setting appropriate to their needs 
214.30  and have the necessary information to make informed choices 
214.31  about home and community-based service options. 
214.32     (b) Individuals under 65 years of age who are admitted to a 
214.33  nursing facility from a hospital must be screened prior to 
214.34  admission as outlined in subdivision 4. 
214.35     (c) Individuals under 65 years of age who are admitted to 
214.36  nursing facilities with only a telephone screening must receive 
215.1   a face-to-face assessment from the long-term care consultation 
215.2   team member of the county in which the facility is located or 
215.3   from the recipient's county case manager within 20 working days 
215.4   of admission. 
215.5      (d) At the face-to-face assessment, the long-term care 
215.6   consultation team member or county case manager must perform the 
215.7   activities required under subdivision 3. 
215.8      (e) For individuals under 21 years of age, the screening or 
215.9   assessment which recommends nursing facility admission must be 
215.10  approved by the commissioner before the individual is admitted 
215.11  to the nursing facility. 
215.12     (f) In the event that an individual under 65 years of age 
215.13  is admitted to a nursing facility on an emergency basis, the 
215.14  county must be notified of the admission on the next working 
215.15  day, and a face-to-face assessment as described in paragraph (c) 
215.16  must be conducted within 20 working days of admission. 
215.17     (g) At the face-to-face assessment, the long-term care 
215.18  consultation team member or the case manager must present 
215.19  information about home and community-based options so the 
215.20  individual can make informed choices.  If the individual chooses 
215.21  home and community-based services, the long-term care 
215.22  consultation team member or case manager must complete a written 
215.23  relocation plan within 20 working days of the visit.  The plan 
215.24  shall describe the services needed to move out of the facility 
215.25  and a timeline for the move which is designed to ensure a smooth 
215.26  transition to the individual's home and community. 
215.27     (h) An individual under 65 years of age residing in a 
215.28  nursing facility shall receive a face-to-face assessment at 
215.29  least every 12 months to review the person's service choices and 
215.30  available alternatives unless the individual indicates, in 
215.31  writing, that annual visits are not desired.  In this case, the 
215.32  individual must receive a face-to-face assessment at least once 
215.33  every 36 months for the same purposes. 
215.34     (i) Notwithstanding the provisions of subdivision 6, the 
215.35  commissioner may pay county agencies directly for face-to-face 
215.36  assessments for individuals who are eligible for medical 
216.1   assistance, under 65 years of age, and being considered for 
216.2   placement or residing in a nursing facility. 
216.3      Sec. 41.  Minnesota Statutes 2000, section 256B.093, 
216.4   subdivision 3, is amended to read: 
216.5      Subd. 3.  [TRAUMATIC BRAIN INJURY PROGRAM DUTIES.] The 
216.6   department shall fund administrative case management under this 
216.7   subdivision using medical assistance administrative funds.  The 
216.8   traumatic brain injury program duties include: 
216.9      (1) recommending to the commissioner in consultation with 
216.10  the medical review agent according to Minnesota Rules, parts 
216.11  9505.0500 to 9505.0540, the approval or denial of medical 
216.12  assistance funds to pay for out-of-state placements for 
216.13  traumatic brain injury services and in-state traumatic brain 
216.14  injury services provided by designated Medicare long-term care 
216.15  hospitals; 
216.16     (2) coordinating the traumatic brain injury home and 
216.17  community-based waiver; 
216.18     (3) approving traumatic brain injury waiver eligibility or 
216.19  care plans or both; 
216.20     (4) providing ongoing technical assistance and consultation 
216.21  to county and facility case managers to facilitate care plan 
216.22  development for appropriate, accessible, and cost-effective 
216.23  medical assistance services; 
216.24     (5) (4) providing technical assistance to promote statewide 
216.25  development of appropriate, accessible, and cost-effective 
216.26  medical assistance services and related policy; 
216.27     (6) (5) providing training and outreach to facilitate 
216.28  access to appropriate home and community-based services to 
216.29  prevent institutionalization; 
216.30     (7) (6) facilitating appropriate admissions, continued stay 
216.31  review, discharges, and utilization review for neurobehavioral 
216.32  hospitals and other specialized institutions; 
216.33     (8) (7) providing technical assistance on the use of prior 
216.34  authorization of home care services and coordination of these 
216.35  services with other medical assistance services; 
216.36     (9) (8) developing a system for identification of nursing 
217.1   facility and hospital residents with traumatic brain injury to 
217.2   assist in long-term planning for medical assistance services.  
217.3   Factors will include, but are not limited to, number of 
217.4   individuals served, length of stay, services received, and 
217.5   barriers to community placement; and 
217.6      (10) (9) providing information, referral, and case 
217.7   consultation to access medical assistance services for 
217.8   recipients without a county or facility case manager.  Direct 
217.9   access to this assistance may be limited due to the structure of 
217.10  the program. 
217.11     Sec. 42.  Minnesota Statutes 2000, section 256B.49, is 
217.12  amended by adding a subdivision to read: 
217.13     Subd. 11.  [AUTHORITY.] (a) The commissioner is authorized 
217.14  to apply for home and community-based service waivers, as 
217.15  authorized under section 1915(c) of the Social Security Act to 
217.16  serve persons under the age of 65 who are determined to require 
217.17  the level of care provided in a nursing home and persons who 
217.18  require the level of care provided in a hospital.  The 
217.19  commissioner shall apply for the home and community-based 
217.20  waivers in order to:  (i) promote the support of persons with 
217.21  disabilities in the most integrated settings; (ii) expand the 
217.22  availability of services for persons who are eligible for 
217.23  medical assistance; (iii) promote cost-effective options to 
217.24  institutional care; and (iv) obtain federal financial 
217.25  participation.  
217.26     (b) The provision of waivered services to medical 
217.27  assistance recipients with disabilities shall comply with the 
217.28  requirements outlined in the federally approved applications for 
217.29  home and community-based services and subsequent amendments, 
217.30  including provision of services according to a service plan 
217.31  designated to meet the needs of the individual.  For purposes of 
217.32  this section, the approved home and community-based application 
217.33  is considered the necessary federal requirement. 
217.34     (c) The commissioner shall seek approval, as authorized 
217.35  under section 1915(c) of the Social Security Act, to allow 
217.36  medical assistance eligibility under this section for children 
218.1   under age 21 without deeming of parental income or assets. 
218.2      (d) The commissioner shall seek approval, as authorized 
218.3   under section 1915(c) of the Social Security Act, to allow 
218.4   medical assistance eligibility under this section for 
218.5   individuals under age 65 without deeming the spouse's income or 
218.6   assets. 
218.7      (e) Prior to submitting to the federal government any 
218.8   proposed changes or amendments to federally approved 
218.9   applications for home and community-based services, the 
218.10  commissioner shall notify interested persons serving on 
218.11  departmental advisory groups and task forces and persons who 
218.12  have requested to be notified. 
218.13     Sec. 43.  Minnesota Statutes 2000, section 256B.49, is 
218.14  amended by adding a subdivision to read: 
218.15     Subd. 12.  [INFORMED CHOICE.] Persons who are determined 
218.16  likely to require the level of care provided in a nursing 
218.17  facility or hospital shall be informed of the home and 
218.18  community-based support alternatives to the provision of 
218.19  inpatient hospital services or nursing facility services.  Each 
218.20  person must be given the choice of either institutional or home 
218.21  and community-based services using the provisions described in 
218.22  section 256B.77, subdivision 2, paragraph (p). 
218.23     Sec. 44.  Minnesota Statutes 2000, section 256B.49, is 
218.24  amended by adding a subdivision to read: 
218.25     Subd. 13.  [CASE MANAGEMENT.] (a) Each recipient of a home 
218.26  and community-based waiver shall be provided case management 
218.27  services by qualified vendors as described in the federally 
218.28  approved waiver application.  The case management service 
218.29  activities provided will include: 
218.30     (1) assessing the needs of the individual within 20 working 
218.31  days of a recipient's request; 
218.32     (2) developing the written individual service plan within 
218.33  ten working days after the assessment is completed; 
218.34     (3) informing the recipient or the recipient's legal 
218.35  guardian or conservator of service options; 
218.36     (4) assisting the recipient in the identification of 
219.1   potential service providers; 
219.2      (5) assisting the recipient to access services; 
219.3      (6) coordinating, evaluating, and monitoring of the 
219.4   services identified in the service plan; 
219.5      (7) completing the annual reviews of the service plan; and 
219.6      (8) informing the recipient or legal representative of the 
219.7   right to have assessments completed and service plans developed 
219.8   within specified time periods, and to appeal county action or 
219.9   inaction under section 256.045, subdivision 3. 
219.10     (b) The case manager may delegate certain aspects of the 
219.11  case management service activities to another individual 
219.12  provided there is oversight by the case manager.  The case 
219.13  manager may not delegate those aspects which require 
219.14  professional judgment including assessments, reassessments, and 
219.15  care plan development. 
219.16     Sec. 45.  Minnesota Statutes 2000, section 256B.49, is 
219.17  amended by adding a subdivision to read: 
219.18     Subd. 14.  [ASSESSMENT AND REASSESSMENT.] (a) Assessments 
219.19  of each recipient's strengths, informal support systems, and 
219.20  need for services shall be completed within 20 working days of 
219.21  the recipient's request.  Reassessment of each recipient's 
219.22  strengths, support systems, and need for services shall be 
219.23  conducted at least every 12 months and at other times when there 
219.24  has been a significant change in the recipient's functioning. 
219.25     (b) Persons with mental retardation or a related condition 
219.26  who apply for services under the nursing facility level waiver 
219.27  programs shall be screened for the appropriate level of care 
219.28  according to section 256B.092. 
219.29     (c) Recipients who are found eligible for home and 
219.30  community-based services under this section before their 65th 
219.31  birthday may remain eligible for these services after their 65th 
219.32  birthday if they continue to meet all other eligibility factors. 
219.33     Sec. 46.  Minnesota Statutes 2000, section 256B.49, is 
219.34  amended by adding a subdivision to read: 
219.35     Subd. 15.  [INDIVIDUALIZED SERVICE PLAN.] Each recipient of 
219.36  home and community-based waivered services shall be provided a 
220.1   copy of the written service plan which: 
220.2      (1) is developed and signed by the recipient within ten 
220.3   working days of the completion of the assessment; 
220.4      (2) meets the assessed needs of the recipient; 
220.5      (3) reasonably ensures the health and safety of the 
220.6   recipient; 
220.7      (4) promotes independence; 
220.8      (5) allows for services to be provided in the most 
220.9   integrated settings; and 
220.10     (6) provides for an informed choice, as defined in section 
220.11  256B.77, subdivision 2, paragraph (p), of service and support 
220.12  providers. 
220.13     Sec. 47.  Minnesota Statutes 2000, section 256B.49, is 
220.14  amended by adding a subdivision to read: 
220.15     Subd. 16.  [SERVICES AND SUPPORTS.] Services and supports 
220.16  included in the home and community-based waivers for persons 
220.17  with disabilities shall meet the requirements set out in United 
220.18  States Code, title 42, section 1396n.  The services and 
220.19  supports, which are offered as alternatives to institutional 
220.20  care, shall promote consumer choice, community inclusion, 
220.21  self-sufficiency, and self-determination.  Beginning January 1, 
220.22  2003, the commissioner shall simplify and improve access to home 
220.23  and community-based services, to the extent possible, through 
220.24  the establishment of a common service menu that is available to 
220.25  eligible recipients regardless of age, disability type, or 
220.26  waiver program.  Consumer-directed community support services 
220.27  shall be offered as an option to all persons eligible for 
220.28  services under subdivision 11 by January 1, 2002.  Services and 
220.29  supports shall be arranged and provided consistent with 
220.30  individualized written plans of care for eligible waiver 
220.31  recipients. 
220.32     Sec. 48.  Minnesota Statutes 2000, section 256B.49, is 
220.33  amended by adding a subdivision to read: 
220.34     Subd. 17.  [COST OF SERVICES AND SUPPORTS.] (a) The 
220.35  commissioner shall ensure that the average per capita 
220.36  expenditures estimated in any fiscal year for home and 
221.1   community-based waiver recipients does not exceed the average 
221.2   per capita expenditures that would have been made to provide 
221.3   institutional services for recipients in the absence of the 
221.4   waiver. 
221.5      (b) The commissioner shall implement on January 1, 2002, 
221.6   one or more aggregate, need-based methods for allocating to 
221.7   local agencies the home and community-based waivered service 
221.8   resources available to support recipients with disabilities in 
221.9   need of the level of care provided in a nursing facility or a 
221.10  hospital.  The commissioner shall allocate resources to single 
221.11  counties and county partnerships in a manner that reflects 
221.12  consideration of: 
221.13     (1) an incentive-based payment process for achieving 
221.14  outcomes; 
221.15     (2) the need for a state-level risk pool; 
221.16     (3) the need for retention of management responsibility at 
221.17  the state agency level; and 
221.18     (4) a phase-in strategy as appropriate. 
221.19     (c) Until the allocation methods described in paragraph (b) 
221.20  are implemented, the annual allowable reimbursement level of 
221.21  home and community-based waiver services shall be the greater of:
221.22     (1) the statewide average payment amount which the 
221.23  recipient is assigned under the waiver reimbursement system in 
221.24  place on June 30, 2001, modified by the percentage of any 
221.25  provider rate increase appropriated for home and community-based 
221.26  services; or 
221.27     (2) an amount approved by the commissioner based on the 
221.28  recipient's extraordinary needs that cannot be met within the 
221.29  current allowable reimbursement level.  The increased 
221.30  reimbursement level must be necessary to allow the recipient to 
221.31  be discharged from an institution or to prevent imminent 
221.32  placement in an institution.  The additional reimbursement may 
221.33  be used to secure environmental modifications; assistive 
221.34  technology and equipment; and increased costs for supervision, 
221.35  training, and support services necessary to address the 
221.36  recipient's extraordinary needs.  The commissioner may approve 
222.1   an increased reimbursement level for up to one year of the 
222.2   recipient's relocation from an institution or up to six months 
222.3   of a determination that a current waiver recipient is at 
222.4   imminent risk of being placed in an institution. 
222.5      (d) Beginning January 1, 2003, medically necessary private 
222.6   duty nursing services will be authorized under this section as 
222.7   complex and regular care according to section 256B.0627.  The 
222.8   rate established by the commissioner for registered nurse or 
222.9   licensed practical nurse services under any home and 
222.10  community-based waiver as of January 1, 2001, shall not be 
222.11  reduced. 
222.12     Sec. 49.  Minnesota Statutes 2000, section 256B.49, is 
222.13  amended by adding a subdivision to read: 
222.14     Subd. 18.  [PAYMENTS.] The commissioner shall reimburse 
222.15  approved vendors from the medical assistance account for the 
222.16  costs of providing home and community-based services to eligible 
222.17  recipients using the invoice processing procedures of the 
222.18  Medicaid management information system (MMIS).  Recipients will 
222.19  be screened and authorized for services according to the 
222.20  federally approved waiver application and its subsequent 
222.21  amendments. 
222.22     Sec. 50.  Minnesota Statutes 2000, section 256B.49, is 
222.23  amended by adding a subdivision to read: 
222.24     Subd. 19.  [HEALTH AND WELFARE.] The commissioner of human 
222.25  services shall take the necessary safeguards to protect the 
222.26  health and welfare of individuals provided services under the 
222.27  waiver. 
222.28     Sec. 51.  Minnesota Statutes 2000, section 256D.35, is 
222.29  amended by adding a subdivision to read: 
222.30     Subd. 11a.  [INSTITUTION.] "Institution" means a hospital, 
222.31  consistent with Code of Federal Regulations, title 42, section 
222.32  440.10; regional treatment center inpatient services, consistent 
222.33  with section 245.474; a nursing facility; and an intermediate 
222.34  care facility for persons with mental retardation. 
222.35     Sec. 52.  Minnesota Statutes 2000, section 256D.35, is 
222.36  amended by adding a subdivision to read: 
223.1      Subd. 18a.  [SHELTER COSTS.] "Shelter costs" means rent, 
223.2   manufactured home lot rentals; monthly principal, interest, 
223.3   insurance premiums, and property taxes due for mortgages or 
223.4   contract for deed costs; costs for utilities, including heating, 
223.5   cooling, electricity, water, and sewerage; garbage collection 
223.6   fees; and the basic service fee for one telephone. 
223.7      Sec. 53.  Minnesota Statutes 2000, section 256D.44, 
223.8   subdivision 5, is amended to read: 
223.9      Subd. 5.  [SPECIAL NEEDS.] In addition to the state 
223.10  standards of assistance established in subdivisions 1 to 4, 
223.11  payments are allowed for the following special needs of 
223.12  recipients of Minnesota supplemental aid who are not residents 
223.13  of a nursing home, a regional treatment center, or a group 
223.14  residential housing facility. 
223.15     (a) The county agency shall pay a monthly allowance for 
223.16  medically prescribed diets payable under the Minnesota family 
223.17  investment program if the cost of those additional dietary needs 
223.18  cannot be met through some other maintenance benefit.  
223.19     (b) Payment for nonrecurring special needs must be allowed 
223.20  for necessary home repairs or necessary repairs or replacement 
223.21  of household furniture and appliances using the payment standard 
223.22  of the AFDC program in effect on July 16, 1996, for these 
223.23  expenses, as long as other funding sources are not available.  
223.24     (c) A fee for guardian or conservator service is allowed at 
223.25  a reasonable rate negotiated by the county or approved by the 
223.26  court.  This rate shall not exceed five percent of the 
223.27  assistance unit's gross monthly income up to a maximum of $100 
223.28  per month.  If the guardian or conservator is a member of the 
223.29  county agency staff, no fee is allowed. 
223.30     (d) The county agency shall continue to pay a monthly 
223.31  allowance of $68 for restaurant meals for a person who was 
223.32  receiving a restaurant meal allowance on June 1, 1990, and who 
223.33  eats two or more meals in a restaurant daily.  The allowance 
223.34  must continue until the person has not received Minnesota 
223.35  supplemental aid for one full calendar month or until the 
223.36  person's living arrangement changes and the person no longer 
224.1   meets the criteria for the restaurant meal allowance, whichever 
224.2   occurs first. 
224.3      (e) A fee of ten percent of the recipient's gross income or 
224.4   $25, whichever is less, is allowed for representative payee 
224.5   services provided by an agency that meets the requirements under 
224.6   SSI regulations to charge a fee for representative payee 
224.7   services.  This special need is available to all recipients of 
224.8   Minnesota supplemental aid regardless of their living 
224.9   arrangement.  
224.10     (f) Notwithstanding the language in this subdivision, an 
224.11  amount equal to the maximum allotment authorized by the federal 
224.12  Food Stamp Program for a single individual which is in effect on 
224.13  the first day of January of the previous year will be added to 
224.14  the standards of assistance established in subdivisions 1 to 4 
224.15  for individuals under the age of 65 who are relocating from an 
224.16  institution and who are shelter needy.  An eligible individual 
224.17  who receives this benefit prior to age 65 may continue to 
224.18  receive the benefit after the age of 65. 
224.19     "Shelter needy" means that the assistance unit incurs 
224.20  monthly shelter costs that exceed 40 percent of the assistance 
224.21  unit's gross income before the application of this special needs 
224.22  standard.  "Gross income" for the purposes of this section is 
224.23  the applicant's or recipient's income as defined in section 
224.24  256D.35, subdivision 10, or the standard specified in 
224.25  subdivision 3, whichever is greater.  A recipient of a federal 
224.26  or state housing subsidy, that limits shelter costs to a 
224.27  percentage of gross income, shall not be considered shelter 
224.28  needy for purposes of this paragraph. 
224.29     Sec. 54.  [SEMI-INDEPENDENT LIVING SERVICES (SILS) STUDY.] 
224.30     The commissioner of human services, in consultation with 
224.31  county representatives and other interested persons, shall 
224.32  develop recommendations revising the funding methodology for 
224.33  SILS as defined in Minnesota Statutes, section 252.275, 
224.34  subdivisions 3, 4, 4b, and 4c, and report by January 15, 2002, 
224.35  to the chair of the house of representatives health and human 
224.36  services finance committee and the chair of the senate health, 
225.1   human services and corrections budget division. 
225.2      Sec. 55.  [WAIVER REQUEST REGARDING SPOUSAL INCOME.] 
225.3      By September 1, 2001, the commissioner of human services 
225.4   shall seek federal approval to allow recipients of home and 
225.5   community-based waivers authorized under Minnesota Statutes, 
225.6   section 256B.49, to choose either a waiver of deeming of spousal 
225.7   income or the spousal impoverishment protections authorized 
225.8   under United States Code, title 42, section 1396r-5, with the 
225.9   addition of the group residential housing rate set according to 
225.10  Minnesota Statutes, section 256I.03, subdivision 5, to the 
225.11  personal needs allowance authorized by Minnesota Statutes, 
225.12  section 256B.0575. 
225.13     Sec. 56.  [GRANTS TO PROVIDE BRAIN INJURY SUPPORT.] 
225.14     Subdivision 1.  [GRANTS.] Within the limits of the 
225.15  appropriations made specifically for this purpose, the 
225.16  commissioner of health shall make grants of up to $300,000 to 
225.17  nonprofit corporations to continue a pilot project that provides 
225.18  information, connects to community resources, and provides 
225.19  support and problem solving on an ongoing basis to individuals 
225.20  with traumatic brain injuries.  
225.21     Subd. 2.  [REPORT.] The commissioner shall prepare a report 
225.22  identifying the results of the pilot project and making 
225.23  recommendations on continuation of the project.  The report must 
225.24  be forwarded to the legislature no later than January 15, 2004. 
225.25     Sec. 57.  [REPEALER.] 
225.26     (a) Minnesota Statutes 2000, sections 145.9245; 256.476, 
225.27  subdivision 7; 256B.0912; 256B.0915, subdivisions 3a, 3b, and 
225.28  3c; 256B.49, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10, are 
225.29  repealed. 
225.30     (b) Minnesota Rules, parts 9505.2455; 9505.2458; 9505.2460; 
225.31  9505.2465; 9505.2470; 9505.2473; 9505.2475; 9505.2480; 
225.32  9505.2485; 9505.2486; 9505.2490; 9505.2495; 9505.2496; 
225.33  9505.2500; 9505.3010; 9505.3015; 9505.3020; 9505.3025; 
225.34  9505.3030; 9505.3035; 9505.3040; 9505.3065; 9505.3085; 
225.35  9505.3135; 9505.3500; 9505.3510; 9505.3520; 9505.3530; 
225.36  9505.3535; 9505.3540; 9505.3545; 9505.3550; 9505.3560; 
226.1   9505.3570; 9505.3575; 9505.3580; 9505.3585; 9505.3600; 
226.2   9505.3610; 9505.3620; 9505.3622; 9505.3624; 9505.3626; 
226.3   9505.3630; 9505.3635; 9505.3640; 9505.3645; 9505.3650; 
226.4   9505.3660; and 9505.3670, are repealed. 
226.5                              ARTICLE 4 
226.6                 CONSUMER INFORMATION AND ASSISTANCE 
226.7                       AND COMMUNITY-BASED CARE 
226.8      Section 1.  Minnesota Statutes 2000, section 256.975, is 
226.9   amended by adding a subdivision to read: 
226.10     Subd. 7.  [CONSUMER INFORMATION AND ASSISTANCE; SENIOR 
226.11  LINKAGE.] (a) The Minnesota board on aging shall operate a 
226.12  statewide information and assistance service to aid older 
226.13  Minnesotans and their families in making informed choices about 
226.14  long-term care options and health care benefits.  Language 
226.15  services to persons with limited English language skills must be 
226.16  made available.  The service, known as Senior LinkAge Line, must 
226.17  be available during business hours through a statewide toll-free 
226.18  number and must also be available through the Internet. 
226.19     (b) The service must assist older adults, caregivers, and 
226.20  providers in accessing information about choices in long-term 
226.21  care services that are purchased through private providers or 
226.22  available through public options.  The service must: 
226.23     (1) develop a comprehensive database that includes detailed 
226.24  listings in both consumer- and provider-oriented formats; 
226.25     (2) make the database accessible on the Internet and 
226.26  through other telecommunication and media-related tools; 
226.27     (3) link callers to interactive long-term care screening 
226.28  tools and making these tools available through the Internet by 
226.29  integrating the tools with the database; 
226.30     (4) develop community education materials with a focus on 
226.31  planning for long-term care and evaluating independent living, 
226.32  housing, and service options; 
226.33     (5) conduct an outreach campaign to assist older adults and 
226.34  their caregivers in finding information on the Internet and 
226.35  through other means of communication; 
226.36     (6) implement a messaging system for overflow callers and 
227.1   respond to these callers by the next business day; 
227.2      (7) link callers with county human services and other 
227.3   providers to receive more in-depth assistance and consultation 
227.4   related to long-term care options; and 
227.5      (8) link callers with quality profiles for nursing 
227.6   facilities and other providers developed by the commissioner of 
227.7   human services. 
227.8      Sec. 2.  [256.9754] [COMMUNITY SERVICES DEVELOPMENT GRANTS 
227.9   PROGRAM.] 
227.10     Subdivision 1.  [DEFINITIONS.] For purposes of this 
227.11  section, the following terms have the meanings given. 
227.12     (a) "Community" means a town, township, city, or targeted 
227.13  neighborhood within a city, or a consortium of towns, townships, 
227.14  cities, or targeted neighborhoods within cities. 
227.15     (b) "Older adult services" means any services available 
227.16  under the elderly waiver program or alternative care grant 
227.17  program; nursing facility services; transportation services; 
227.18  respite services; and other community-based services identified 
227.19  as necessary either to maintain lifestyle choices for older 
227.20  Minnesotans or to promote independence. 
227.21     (c) "Older adult" refers to individuals 65 years of age and 
227.22  older. 
227.23     Subd. 2.  [CREATION.] The community services development 
227.24  grants program is created under the administration of the 
227.25  commissioner of human services.  
227.26     Subd. 3.  [PROVISION OF GRANTS.] The commissioner shall 
227.27  make grants available to communities, providers of older adult 
227.28  services identified in subdivision 1, or to a consortium of 
227.29  providers of older adult services, to establish new older adult 
227.30  services.  Grants may be provided for capital and other costs 
227.31  including, but not limited to, start-up and training costs, 
227.32  equipment, and supplies related to the establishment of new 
227.33  older adult services or other residential or service 
227.34  alternatives to nursing facility care.  Grants may also be made 
227.35  to renovate current buildings, provide transportation services, 
227.36  or expand state-funded programs in the area. 
228.1      Subd. 4.  [ELIGIBILITY.] Grants may be awarded only to 
228.2   communities and providers or to a consortium of providers that 
228.3   have a local match of 50 percent of the costs for the project in 
228.4   the form of donations, local tax dollars, in-kind donations, or 
228.5   other local match. 
228.6      Sec. 3.  Minnesota Statutes 2000, section 256B.0911, 
228.7   subdivision 1, is amended to read: 
228.8      Subdivision 1.  [PURPOSE AND GOAL.] (a) The purpose of the 
228.9   preadmission screening program long-term care consultation 
228.10  services is to assist persons with long-term or chronic care 
228.11  needs in making long-term care decisions and selecting options 
228.12  that meet their needs and reflect their preferences.  The 
228.13  availability of, and access to, information and other types of 
228.14  assistance is also intended to prevent or delay certified 
228.15  nursing facility placements by assessing applicants and 
228.16  residents and offering cost-effective alternatives appropriate 
228.17  for the person's needs and to provide transition assistance 
228.18  after admission.  Further, the goal of the program these 
228.19  services is to contain costs associated with unnecessary 
228.20  certified nursing facility admissions.  The commissioners of 
228.21  human services and health shall seek to maximize use of 
228.22  available federal and state funds and establish the broadest 
228.23  program possible within the funding available. 
228.24     (b) These services must be coordinated with services 
228.25  provided under sections 256.975, subdivision 7, and 256.9772, 
228.26  and with services provided by other public and private agencies 
228.27  in the community to offer a variety of cost-effective 
228.28  alternatives to persons with disabilities and elderly persons.  
228.29  The county agency providing long-term care consultation services 
228.30  shall encourage the use of volunteers from families, religious 
228.31  organizations, social clubs, and similar civic and service 
228.32  organizations to provide community-based services. 
228.33     Sec. 4.  Minnesota Statutes 2000, section 256B.0911, is 
228.34  amended by adding a subdivision to read: 
228.35     Subd. 1a.  [DEFINITIONS.] For purposes of this section, the 
228.36  following definitions apply: 
229.1      (a) "Long-term care consultation services" means: 
229.2      (1) providing information and education to the general 
229.3   public regarding availability of the services authorized under 
229.4   this section; 
229.5      (2) an intake process that provides access to the services 
229.6   described in this section; 
229.7      (3) assessment of the health, psychological, and social 
229.8   needs of referred individuals; 
229.9      (4) assistance in identifying services needed to maintain 
229.10  an individual in the least restrictive environment; 
229.11     (5) providing recommendations on cost-effective community 
229.12  services that are available to the individual; 
229.13     (6) development of an individual's community support plan; 
229.14     (7) providing information regarding eligibility for 
229.15  Minnesota health care programs; 
229.16     (8) preadmission screening to determine the need for a 
229.17  nursing facility level of care; 
229.18     (9) preliminary determination of Minnesota health care 
229.19  programs eligibility for individuals who need a nursing facility 
229.20  level of care, with appropriate referrals for final 
229.21  determination; 
229.22     (10) providing recommendations for nursing facility 
229.23  placement when there are no cost-effective community services 
229.24  available; and 
229.25     (11) assistance to transition people back to community 
229.26  settings after facility admission. 
229.27     (b) "Minnesota health care programs" means the medical 
229.28  assistance program under chapter 256B, the alternative care 
229.29  program under section 256B.0913, and the prescription drug 
229.30  program under section 256.955. 
229.31     Sec. 5.  Minnesota Statutes 2000, section 256B.0911, 
229.32  subdivision 3, is amended to read: 
229.33     Subd. 3.  [PERSONS RESPONSIBLE FOR CONDUCTING THE 
229.34  PREADMISSION SCREENING LONG-TERM CARE CONSULTATION TEAM.] (a) A 
229.35  local screening long-term care consultation team shall be 
229.36  established by the county board of commissioners.  Each local 
230.1   screening consultation team shall consist of screeners who are a 
230.2   at least one social worker and a at least one public health 
230.3   nurse from their respective county agencies.  The board may 
230.4   designate public health or social services as the lead agency 
230.5   for long-term care consultation services.  If a county does not 
230.6   have a public health nurse available, it may request approval 
230.7   from the commissioner to assign a county registered nurse with 
230.8   at least one year experience in home care to participate on the 
230.9   team.  The screening team members must confer regarding the most 
230.10  appropriate care for each individual screened.  Two or more 
230.11  counties may collaborate to establish a joint local screening 
230.12  consultation team or teams. 
230.13     (b) In assessing a person's needs, screeners shall have a 
230.14  physician available for consultation and shall consider the 
230.15  assessment of the individual's attending physician, if any.  The 
230.16  individual's physician shall be included if the physician 
230.17  chooses to participate.  Other personnel may be included on the 
230.18  team as deemed appropriate by the county agencies.  The team is 
230.19  responsible for providing long-term care consultation services 
230.20  to all persons located in the county who request the services, 
230.21  regardless of eligibility for Minnesota health care programs. 
230.22     Sec. 6.  Minnesota Statutes 2000, section 256B.0911, is 
230.23  amended by adding a subdivision to read: 
230.24     Subd. 3a.  [ASSESSMENT AND SUPPORT PLANNING.] (a) Persons 
230.25  requesting assessment, services planning, or other assistance 
230.26  intended to support community-based living must be visited by a 
230.27  long-term care consultation team within ten working days after 
230.28  the date on which an assessment was requested or recommended.  
230.29  Assessments must be conducted according to paragraphs (b) to (g).
230.30     (b) The county may utilize a team of either the social 
230.31  worker or public health nurse, or both, to conduct the 
230.32  assessment in a face-to-face interview.  The consultation team 
230.33  members must confer regarding the most appropriate care for each 
230.34  individual screened or assessed. 
230.35     (c) The long-term care consultation team must assess the 
230.36  health and social needs of the person, using an assessment form 
231.1   provided by the commissioner. 
231.2      (d) The team must conduct the assessment in a face-to-face 
231.3   interview with the person being assessed and the person's legal 
231.4   representative, if applicable. 
231.5      (e) The team must provide the person, or the person's legal 
231.6   representative, with written recommendations for facility- or 
231.7   community-based services.  The team must document that the most 
231.8   cost-effective alternatives available were offered to the 
231.9   individual.  For purposes of this requirement, "cost-effective 
231.10  alternatives" means community services and living arrangements 
231.11  that cost the same as or less than nursing facility care. 
231.12     (f) If the person chooses to use community-based services, 
231.13  the team must provide the person or the person's legal 
231.14  representative with a written community support plan, regardless 
231.15  of whether the individual is eligible for Minnesota health care 
231.16  programs.  The person may request assistance in developing a 
231.17  community support plan without participating in a complete 
231.18  assessment. 
231.19     (g) The team must give the person receiving assessment or 
231.20  support planning, or the person's legal representative, 
231.21  materials supplied by the commissioner containing the following 
231.22  information: 
231.23     (1) the purpose of preadmission screening and assessment; 
231.24     (2) information about Minnesota health care programs; 
231.25     (3) the person's freedom to accept or reject the 
231.26  recommendations of the team; 
231.27     (4) the person's right to confidentiality under the 
231.28  Minnesota Government Data Practices Act, chapter 13; and 
231.29     (5) the person's right to appeal the decision regarding the 
231.30  need for nursing facility level of care or the county's final 
231.31  decisions regarding public programs eligibility according to 
231.32  section 256.045, subdivision 3. 
231.33     Sec. 7.  Minnesota Statutes 2000, section 256B.0911, is 
231.34  amended by adding a subdivision to read: 
231.35     Subd. 3b.  [TRANSITION ASSISTANCE.] (a) A long-term care 
231.36  consultation team shall provide assistance to persons residing 
232.1   in a nursing facility, hospital, regional treatment center, or 
232.2   intermediate care facility for persons with mental retardation 
232.3   who request or are referred for assistance.  Transition 
232.4   assistance must include assessment, community support plan 
232.5   development, referrals to Minnesota health care programs, and 
232.6   referrals to programs that provide assistance with housing. 
232.7      (b) The county shall develop transition processes with 
232.8   institutional social workers and discharge planners to ensure 
232.9   that: 
232.10     (1) persons admitted to facilities receive information 
232.11  about transition assistance that is available; 
232.12     (2) the assessment is completed for persons within ten 
232.13  working days of the date of request or recommendation for 
232.14  assessment; and 
232.15     (3) there is a plan for transition and follow-up for the 
232.16  individual's return to the community.  The plan must require 
232.17  notification of other local agencies when a person who may 
232.18  require assistance is screened by one county for admission to a 
232.19  facility located in another county. 
232.20     (c) If a person who is eligible for a Minnesota health care 
232.21  program is admitted to a nursing facility, the nursing facility 
232.22  must include a consultation team member or the case manager in 
232.23  the discharge planning process. 
232.24     Sec. 8.  Minnesota Statutes 2000, section 256B.0911, is 
232.25  amended by adding a subdivision to read: 
232.26     Subd. 3c.  [ACCESS DEMONSTRATIONS.] (a) The commissioner 
232.27  shall establish demonstration projects that are intended to 
232.28  target critical areas for improvement in long-term care 
232.29  consultation services, and to organize resources in a more 
232.30  efficient, effective, and preferred way.  The demonstrations may 
232.31  include: 
232.32     (1) development and implementation of strategies to 
232.33  increase the number of people who leave nursing facilities, 
232.34  hospitals, regional treatment centers, and intermediate care 
232.35  facilities for persons with mental retardation and return to 
232.36  community living, based on demonstration proposals that: 
233.1      (i) focus on transitional planning between care settings; 
233.2      (ii) engage a variety of providers and care settings; 
233.3      (iii) include participants from both greater Minnesota and 
233.4   metro communities; 
233.5      (iv) emphasize regional or other cooperative approaches; 
233.6   and 
233.7      (v) identify potential obstacles to individuals returning 
233.8   to community settings and propose recommendations to address 
233.9   those obstacles and ways to improve the identification of people 
233.10  who need transitional assistance; 
233.11     (2) improved access to and expansion of the availability of 
233.12  long-term care consultation services, and improved integration 
233.13  of these services with other local activities designed to 
233.14  support people in community living; 
233.15     (3) identification of activities that increase public 
233.16  awareness of and information about the various forms of 
233.17  long-term care assistance available, and develop and implement 
233.18  replicable training efforts; and 
233.19     (4) selection of sites based on outcome and other 
233.20  performance criteria outlined in an application process.  
233.21  Projects can be single-county or multicounty managed.  Project 
233.22  budgets may include payments to increase the amount of and 
233.23  encourage innovation in the development of transitional services 
233.24  within demonstration sites.  Payments for increased assessments, 
233.25  support plan development, and other activities, as approved in 
233.26  the budget proposal for selected project sites, shall be 
233.27  incorporated into the reimbursement for long-term care 
233.28  consultation services as described in subdivision 6.  Projected 
233.29  transition assessments included as part of selected 
233.30  demonstration sites shall be calculated at the rate for county 
233.31  case management services.  
233.32     (b) The commissioner of human services shall submit a 
233.33  report to the legislature describing demonstration models, 
233.34  implementation activities, and projected outcomes by February 
233.35  15, 2002.  A final report on the performance of the models and 
233.36  recommendations for strategies to address relocation or 
234.1   transitional assistance shall be completed by December 15, 2003. 
234.2      Sec. 9.  Minnesota Statutes 2000, section 256B.0911, is 
234.3   amended by adding a subdivision to read: 
234.4      Subd. 4a.  [PREADMISSION SCREENING ACTIVITIES RELATED TO 
234.5   NURSING FACILITY ADMISSIONS.] (a) All applicants to Medicaid 
234.6   certified nursing facilities, including certified boarding care 
234.7   facilities, must be screened prior to admission regardless of 
234.8   income, assets, or funding sources for nursing facility care, 
234.9   except as described in subdivision 4b.  The purpose of the 
234.10  screening is to determine the need for nursing facility level of 
234.11  care as described in paragraph (d) and to complete activities 
234.12  required under federal law related to mental illness and mental 
234.13  retardation as outlined in paragraph (b). 
234.14     (b) A person who has a diagnosis or possible diagnosis of 
234.15  mental illness, mental retardation, or a related condition must 
234.16  receive a preadmission screening before admission regardless of 
234.17  the exemptions outlined in subdivision 4b, paragraph (b), to 
234.18  identify the need for further evaluation and specialized 
234.19  services, unless the admission prior to screening is authorized 
234.20  by the local mental health authority or the local developmental 
234.21  disabilities case manager, or unless authorized by the county 
234.22  agency according to Public Law Number 100-508.  
234.23     The following criteria apply to the preadmission screening: 
234.24     (1) the county must use forms and criteria developed by the 
234.25  commissioner to identify persons who require referral for 
234.26  further evaluation and determination of the need for specialized 
234.27  services; and 
234.28     (2) the evaluation and determination of the need for 
234.29  specialized services must be done by: 
234.30     (i) a qualified independent mental health professional, for 
234.31  persons with a primary or secondary diagnosis of a serious 
234.32  mental illness; or 
234.33     (ii) a qualified mental retardation professional, for 
234.34  persons with a primary or secondary diagnosis of mental 
234.35  retardation or related conditions.  For purposes of this 
234.36  requirement, a qualified mental retardation professional must 
235.1   meet the standards for a qualified mental retardation 
235.2   professional under Code of Federal Regulations, title 42, 
235.3   section 483.430. 
235.4      (c) The local county mental health authority or the state 
235.5   mental retardation authority under Public Law Numbers 100-203 
235.6   and 101-508 may prohibit admission to a nursing facility if the 
235.7   individual does not meet the nursing facility level of care 
235.8   criteria or needs specialized services as defined in Public Law 
235.9   Numbers 100-203 and 101-508.  For purposes of this section, 
235.10  "specialized services" for a person with mental retardation or a 
235.11  related condition means active treatment as that term is defined 
235.12  under Code of Federal Regulations, title 42, section 483.440 
235.13  (a)(1). 
235.14     (d) The determination of the need for nursing facility 
235.15  level of care must be made according to criteria developed by 
235.16  the commissioner.  In assessing a person's needs, consultation 
235.17  team members shall have a physician available for consultation 
235.18  and shall consider the assessment of the individual's attending 
235.19  physician, if any.  The individual's physician must be included 
235.20  if the physician chooses to participate.  Other personnel may be 
235.21  included on the team as deemed appropriate by the county. 
235.22     Sec. 10.  Minnesota Statutes 2000, section 256B.0911, is 
235.23  amended by adding a subdivision to read: 
235.24     Subd. 4b.  [EXEMPTIONS AND EMERGENCY ADMISSIONS.] (a) 
235.25  Exemptions from the federal screening requirements outlined in 
235.26  subdivision 4a, paragraphs (b) and (c), are limited to: 
235.27     (1) a person who, having entered an acute care facility 
235.28  from a certified nursing facility, is returning to a certified 
235.29  nursing facility; and 
235.30     (2) a person transferring from one certified nursing 
235.31  facility in Minnesota to another certified nursing facility in 
235.32  Minnesota. 
235.33     (b) Persons who are exempt from preadmission screening for 
235.34  purposes of level of care determination include: 
235.35     (1) persons described in paragraph (a); 
235.36     (2) an individual who has a contractual right to have 
236.1   nursing facility care paid for indefinitely by the veterans' 
236.2   administration; 
236.3      (3) an individual enrolled in a demonstration project under 
236.4   section 256B.69, subdivision 8, at the time of application to a 
236.5   nursing facility; 
236.6      (4) an individual currently being served under the 
236.7   alternative care program or under a home and community-based 
236.8   services waiver authorized under section 1915(c) of the federal 
236.9   Social Security Act; and 
236.10     (5) individuals admitted to a certified nursing facility 
236.11  for a short-term stay, which is expected to be 14 days or less 
236.12  in duration based upon a physician's certification, and who have 
236.13  been assessed and approved for nursing facility admission within 
236.14  the previous six months.  This exemption applies only if the 
236.15  consultation team member determines at the time of the initial 
236.16  assessment of the six-month period that it is appropriate to use 
236.17  the nursing facility for short-term stays and that there is an 
236.18  adequate plan of care for return to the home or community-based 
236.19  setting.  If a stay exceeds 14 days, the individual must be 
236.20  referred no later than the first county working day following 
236.21  the 14th resident day for a screening, which must be completed 
236.22  within five working days of the referral.  The payment 
236.23  limitations in subdivision 7 apply to an individual found at 
236.24  screening to not meet the level of care criteria for admission 
236.25  to a certified nursing facility. 
236.26     (c) Persons admitted to a Medicaid-certified nursing 
236.27  facility from the community on an emergency basis as described 
236.28  in paragraph (d) or from an acute care facility on a nonworking 
236.29  day must be screened the first working day after admission. 
236.30     (d) Emergency admission to a nursing facility prior to 
236.31  screening is permitted when all of the following conditions are 
236.32  met: 
236.33     (1) a person is admitted from the community to a certified 
236.34  nursing or certified boarding care facility during county 
236.35  nonworking hours; 
236.36     (2) a physician has determined that delaying admission 
237.1   until preadmission screening is completed would adversely affect 
237.2   the person's health and safety; 
237.3      (3) there is a recent precipitating event that precludes 
237.4   the client from living safely in the community, such as 
237.5   sustaining an injury, sudden onset of acute illness, or a 
237.6   caregiver's inability to continue to provide care; 
237.7      (4) the attending physician has authorized the emergency 
237.8   placement and has documented the reason that the emergency 
237.9   placement is recommended; and 
237.10     (5) the county is contacted on the first working day 
237.11  following the emergency admission. 
237.12  Transfer of a patient from an acute care hospital to a nursing 
237.13  facility is not considered an emergency except for a person who 
237.14  has received hospital services in the following situations: 
237.15  hospital admission for observation, care in an emergency room 
237.16  without hospital admission, or following hospital 24-hour bed 
237.17  care. 
237.18     Sec. 11.  Minnesota Statutes 2000, section 256B.0911, is 
237.19  amended by adding a subdivision to read: 
237.20     Subd. 4c.  [SCREENING REQUIREMENTS.] (a) A person may be 
237.21  screened for nursing facility admission by telephone or in a 
237.22  face-to-face screening interview.  Consultation team members 
237.23  shall identify each individual's needs using the following 
237.24  categories: 
237.25     (1) the person needs no face-to-face screening interview to 
237.26  determine the need for nursing facility level of care based on 
237.27  information obtained from other health care professionals; 
237.28     (2) the person needs an immediate face-to-face screening 
237.29  interview to determine the need for nursing facility level of 
237.30  care and complete activities required under subdivision 4a; or 
237.31     (3) the person may be exempt from screening requirements as 
237.32  outlined in subdivision 4b, but will need transitional 
237.33  assistance after admission or in-person follow-along after a 
237.34  return home. 
237.35     (b) Persons admitted on a nonemergency basis to a 
237.36  Medicaid-certified nursing facility must be screened prior to 
238.1   admission. 
238.2      (c) The long-term care consultation team shall recommend a 
238.3   case mix classification for persons admitted to a certified 
238.4   nursing facility when sufficient information is received to make 
238.5   that classification.  The nursing facility is authorized to 
238.6   conduct all case mix assessments for persons who have been 
238.7   screened prior to admission for whom the county did not 
238.8   recommend a case mix classification.  The nursing facility is 
238.9   authorized to conduct all case mix assessments for persons 
238.10  admitted to the facility prior to a preadmission screening.  The 
238.11  county retains the responsibility of distributing appropriate 
238.12  case mix forms to the nursing facility. 
238.13     (d) The county screening or intake activity must include 
238.14  processes to identify persons who may require transition 
238.15  assistance as described in subdivision 3b. 
238.16     Sec. 12.  Minnesota Statutes 2000, section 256B.0911, 
238.17  subdivision 5, is amended to read: 
238.18     Subd. 5.  [SIMPLIFICATION OF FORMS ADMINISTRATIVE 
238.19  ACTIVITY.] The commissioner shall minimize the number of forms 
238.20  required in the preadmission screening process provision of 
238.21  long-term care consultation services and shall limit the 
238.22  screening document to items necessary for care community support 
238.23  plan approval, reimbursement, program planning, evaluation, and 
238.24  policy development. 
238.25     Sec. 13.  Minnesota Statutes 2000, section 256B.0911, 
238.26  subdivision 6, is amended to read: 
238.27     Subd. 6.  [PAYMENT FOR PREADMISSION SCREENING LONG-TERM 
238.28  CARE CONSULTATION SERVICES.] (a) The total screening payment for 
238.29  each county must be paid monthly by certified nursing facilities 
238.30  in the county.  The monthly amount to be paid by each nursing 
238.31  facility for each fiscal year must be determined by dividing the 
238.32  county's annual allocation for screenings long-term care 
238.33  consultation services by 12 to determine the monthly payment and 
238.34  allocating the monthly payment to each nursing facility based on 
238.35  the number of licensed beds in the nursing facility.  Payments 
238.36  to counties in which there is no certified nursing facility must 
239.1   be made by increasing the payment rate of the two facilities 
239.2   located nearest to the county seat. 
239.3      (b) The commissioner shall include the total annual payment 
239.4   for screening determined under paragraph (a) for each nursing 
239.5   facility reimbursed under section 256B.431 or 256B.434 according 
239.6   to section 256B.431, subdivision 2b, paragraph (g), or 256B.435. 
239.7      (c) In the event of the layaway, delicensure and 
239.8   decertification, or removal from layaway of 25 percent or more 
239.9   of the beds in a facility, the commissioner may adjust the per 
239.10  diem payment amount in paragraph (b) and may adjust the monthly 
239.11  payment amount in paragraph (a). The effective date of an 
239.12  adjustment made under this paragraph shall be on or after the 
239.13  first day of the month following the effective date of the 
239.14  layaway, delicensure and decertification, or removal from 
239.15  layaway. 
239.16     (d) Payments for screening activities long-term care 
239.17  consultation services are available to the county or counties to 
239.18  cover staff salaries and expenses to provide the screening 
239.19  function services described in subdivision 1a.  The lead agency 
239.20  county shall employ, or contract with other agencies to employ, 
239.21  within the limits of available funding, sufficient personnel 
239.22  to conduct the preadmission screening activity provide long-term 
239.23  care consultation services while meeting the state's long-term 
239.24  care outcomes and objectives as defined in section 256B.0917, 
239.25  subdivision 1.  The local agency county shall be accountable for 
239.26  meeting local objectives as approved by the commissioner in the 
239.27  CSSA biennial plan. 
239.28     (d) (e) Notwithstanding section 256B.0641, overpayments 
239.29  attributable to payment of the screening costs under the medical 
239.30  assistance program may not be recovered from a facility.  
239.31     (e) (f) The commissioner of human services shall amend the 
239.32  Minnesota medical assistance plan to include reimbursement for 
239.33  the local screening consultation teams. 
239.34     (g) The county may bill, as case management services, 
239.35  assessments, support planning, and follow-along provided to 
239.36  persons determined to be eligible for case management under 
240.1   Minnesota health care programs.  No individual or family member 
240.2   shall be charged for an initial assessment or initial support 
240.3   plan development provided under subdivision 3a or 3b. 
240.4      Sec. 14.  Minnesota Statutes 2000, section 256B.0911, 
240.5   subdivision 7, is amended to read: 
240.6      Subd. 7.  [REIMBURSEMENT FOR CERTIFIED NURSING FACILITIES.] 
240.7   (a) Medical assistance reimbursement for nursing facilities 
240.8   shall be authorized for a medical assistance recipient only if a 
240.9   preadmission screening has been conducted prior to admission or 
240.10  the local county agency has authorized an exemption.  Medical 
240.11  assistance reimbursement for nursing facilities shall not be 
240.12  provided for any recipient who the local screener has determined 
240.13  does not meet the level of care criteria for nursing facility 
240.14  placement or, if indicated, has not had a level II PASARR OBRA 
240.15  evaluation as required under the federal Omnibus Budget 
240.16  Reconciliation Act of 1987 completed unless an admission for a 
240.17  recipient with mental illness is approved by the local mental 
240.18  health authority or an admission for a recipient with mental 
240.19  retardation or related condition is approved by the state mental 
240.20  retardation authority. 
240.21     (b) The nursing facility must not bill a person who is not 
240.22  a medical assistance recipient for resident days that preceded 
240.23  the date of completion of screening activities as required under 
240.24  subdivisions 4a, 4b, and 4c.  The nursing facility must include 
240.25  unreimbursed resident days in the nursing facility resident day 
240.26  totals reported to the commissioner. 
240.27     (c) The commissioner shall make a request to the health 
240.28  care financing administration for a waiver allowing screening 
240.29  team approval of Medicaid payments for certified nursing 
240.30  facility care.  An individual has a choice and makes the final 
240.31  decision between nursing facility placement and community 
240.32  placement after the screening team's recommendation, except as 
240.33  provided in paragraphs (b) and (c) subdivision 4a, paragraph (c).
240.34     (c) The local county mental health authority or the state 
240.35  mental retardation authority under Public Law Numbers 100-203 
240.36  and 101-508 may prohibit admission to a nursing facility, if the 
241.1   individual does not meet the nursing facility level of care 
241.2   criteria or needs specialized services as defined in Public Law 
241.3   Numbers 100-203 and 101-508.  For purposes of this section, 
241.4   "specialized services" for a person with mental retardation or a 
241.5   related condition means "active treatment" as that term is 
241.6   defined in Code of Federal Regulations, title 42, section 
241.7   483.440(a)(1). 
241.8      (e) Appeals from the screening team's recommendation or the 
241.9   county agency's final decision shall be made according to 
241.10  section 256.045, subdivision 3. 
241.11     Sec. 15.  Minnesota Statutes 2000, section 256B.0913, 
241.12  subdivision 1, is amended to read: 
241.13     Subdivision 1.  [PURPOSE AND GOALS.] The purpose of the 
241.14  alternative care program is to provide funding for or access to 
241.15  home and community-based services for frail elderly persons, in 
241.16  order to limit nursing facility placements.  The program is 
241.17  designed to support frail elderly persons in their desire to 
241.18  remain in the community as independently and as long as possible 
241.19  and to support informal caregivers in their efforts to provide 
241.20  care for frail elderly people.  Further, the goals of the 
241.21  program are: 
241.22     (1) to contain medical assistance expenditures by providing 
241.23  funding care in the community at a cost the same or less than 
241.24  nursing facility costs; and 
241.25     (2) to maintain the moratorium on new construction of 
241.26  nursing home beds. 
241.27     Sec. 16.  Minnesota Statutes 2000, section 256B.0913, 
241.28  subdivision 2, is amended to read: 
241.29     Subd. 2.  [ELIGIBILITY FOR SERVICES.] Alternative care 
241.30  services are available to all frail older Minnesotans.  This 
241.31  includes: 
241.32     (1) persons who are receiving medical assistance and served 
241.33  under the medical assistance program or the Medicaid waiver 
241.34  program; 
241.35     (2) persons age 65 or older who are not eligible for 
241.36  medical assistance without a spenddown or waiver obligation but 
242.1   who would be eligible for medical assistance within 180 days of 
242.2   admission to a nursing facility and served under subject to 
242.3   subdivisions 4 to 13; and 
242.4      (3) persons who are paying for their services out-of-pocket.
242.5      Sec. 17.  Minnesota Statutes 2000, section 256B.0913, 
242.6   subdivision 4, is amended to read: 
242.7      Subd. 4.  [ELIGIBILITY FOR FUNDING FOR SERVICES FOR 
242.8   NONMEDICAL ASSISTANCE RECIPIENTS.] (a) Funding for services 
242.9   under the alternative care program is available to persons who 
242.10  meet the following criteria: 
242.11     (1) the person has been screened by the county screening 
242.12  team or, if previously screened and served under the alternative 
242.13  care program, assessed by the local county social worker or 
242.14  public health nurse determined by a community assessment under 
242.15  section 256B.0911, to be a person who would require the level of 
242.16  care provided in a nursing facility, but for the provision of 
242.17  services under the alternative care program; 
242.18     (2) the person is age 65 or older; 
242.19     (3) the person would be financially eligible for medical 
242.20  assistance within 180 days of admission to a nursing facility; 
242.21     (4) the person meets the asset transfer requirements of is 
242.22  not ineligible for the medical assistance program due to an 
242.23  asset transfer penalty; 
242.24     (5) the screening team would recommend nursing facility 
242.25  admission or continued stay for the person if alternative care 
242.26  services were not available; 
242.27     (6) the person needs services that are not available at 
242.28  that time in the county funded through other county, state, or 
242.29  federal funding sources; and 
242.30     (7) (6) the monthly cost of the alternative care services 
242.31  funded by the program for this person does not exceed 75 percent 
242.32  of the statewide average monthly medical assistance payment for 
242.33  nursing facility care at the individual's case mix 
242.34  classification weighted average monthly nursing facility rate of 
242.35  the case mix resident class to which the individual alternative 
242.36  care client would be assigned under Minnesota Rules, parts 
243.1   9549.0050 to 9549.0059, less the recipient's maintenance needs 
243.2   allowance as described in section 256B.0915, subdivision 1d, 
243.3   paragraph (a), until the first day of the state fiscal year in 
243.4   which the resident assessment system, under section 256B.437, 
243.5   for nursing home rate determination is implemented.  Effective 
243.6   on the first day of the state fiscal year in which a resident 
243.7   assessment system, under section 256B.437, for nursing home rate 
243.8   determination is implemented and the first day of each 
243.9   subsequent state fiscal year, the monthly cost of alternative 
243.10  care services for this person shall not exceed the alternative 
243.11  care monthly cap for the case mix resident class to which the 
243.12  alternative care client would be assigned under Minnesota Rules, 
243.13  parts 9549.0050 to 9549.0059, which was in effect on the last 
243.14  day of the previous state fiscal year, and adjusted by the 
243.15  greater of any legislatively adopted home and community-based 
243.16  services cost-of-living percentage increase or any legislatively 
243.17  adopted statewide percent rate increase for nursing facilities.  
243.18  This monthly limit does not prohibit the alternative care client 
243.19  from payment for additional services, but in no case may the 
243.20  cost of additional services purchased under this section exceed 
243.21  the difference between the client's monthly service limit 
243.22  defined under section 256B.0915, subdivision 3, and the 
243.23  alternative care program monthly service limit defined in this 
243.24  paragraph.  If medical supplies and equipment or adaptations 
243.25  environmental modifications are or will be purchased for an 
243.26  alternative care services recipient, the costs may be prorated 
243.27  on a monthly basis throughout the year in which they are 
243.28  purchased for up to 12 consecutive months beginning with the 
243.29  month of purchase.  If the monthly cost of a recipient's other 
243.30  alternative care services exceeds the monthly limit established 
243.31  in this paragraph, the annual cost of the alternative care 
243.32  services shall be determined.  In this event, the annual cost of 
243.33  alternative care services shall not exceed 12 times the monthly 
243.34  limit calculated described in this paragraph. 
243.35     (b) Individuals who meet the criteria in paragraph (a) and 
243.36  who have been approved for alternative care funding are called 
244.1   180-day eligible clients. 
244.2      (c) The statewide average payment for nursing facility care 
244.3   is the statewide average monthly nursing facility rate in effect 
244.4   on July 1 of the fiscal year in which the cost is incurred, less 
244.5   the statewide average monthly income of nursing facility 
244.6   residents who are age 65 or older and who are medical assistance 
244.7   recipients in the month of March of the previous fiscal year.  
244.8   This monthly limit does not prohibit the 180-day eligible client 
244.9   from paying for additional services needed or desired.  
244.10     (d) In determining the total costs of alternative care 
244.11  services for one month, the costs of all services funded by the 
244.12  alternative care program, including supplies and equipment, must 
244.13  be included. 
244.14     (e) Alternative care funding under this subdivision is not 
244.15  available for a person who is a medical assistance recipient or 
244.16  who would be eligible for medical assistance without a 
244.17  spenddown, unless authorized by the commissioner or waiver 
244.18  obligation.  A person whose initial application for medical 
244.19  assistance is being processed may be served under the 
244.20  alternative care program for a period up to 60 days.  If the 
244.21  individual is found to be eligible for medical assistance, the 
244.22  county must bill medical assistance must be billed for services 
244.23  payable under the federally approved elderly waiver plan and 
244.24  delivered from the date the individual was found eligible 
244.25  for services reimbursable under the federally approved elderly 
244.26  waiver program plan.  Notwithstanding this provision, upon 
244.27  federal approval, alternative care funds may not be used to pay 
244.28  for any service the cost of which is payable by medical 
244.29  assistance or which is used by a recipient to meet a medical 
244.30  assistance income spenddown or waiver obligation.  
244.31     (f) (c) Alternative care funding is not available for a 
244.32  person who resides in a licensed nursing home or, certified 
244.33  boarding care home, hospital, or intermediate care facility, 
244.34  except for case management services which are being provided in 
244.35  support of the discharge planning process to a nursing home 
244.36  resident or certified boarding care home resident who is 
245.1   ineligible for case management funded by medical assistance. 
245.2      Sec. 18.  Minnesota Statutes 2000, section 256B.0913, 
245.3   subdivision 5, is amended to read: 
245.4      Subd. 5.  [SERVICES COVERED UNDER ALTERNATIVE CARE.] (a) 
245.5   Alternative care funding may be used for payment of costs of: 
245.6      (1) adult foster care; 
245.7      (2) adult day care; 
245.8      (3) home health aide; 
245.9      (4) homemaker services; 
245.10     (5) personal care; 
245.11     (6) case management; 
245.12     (7) respite care; 
245.13     (8) assisted living; 
245.14     (9) residential care services; 
245.15     (10) care-related supplies and equipment; 
245.16     (11) meals delivered to the home; 
245.17     (12) transportation; 
245.18     (13) skilled nursing; 
245.19     (14) chore services; 
245.20     (15) companion services; 
245.21     (16) nutrition services; 
245.22     (17) training for direct informal caregivers; 
245.23     (18) telemedicine devices to monitor recipients in their 
245.24  own homes as an alternative to hospital care, nursing home care, 
245.25  or home visits; and 
245.26     (19) "other services" including includes discretionary 
245.27  funds and direct cash payments to clients, approved by the 
245.28  county agency following approval by the commissioner, subject to 
245.29  the provisions of paragraph (m) (j).  Total annual payments for "
245.30  other services" for all clients within a county may not exceed 
245.31  either ten percent of that county's annual alternative care 
245.32  program base allocation or $5,000, whichever is greater.  In no 
245.33  case shall this amount exceed the county's total annual 
245.34  alternative care program base allocation; and 
245.35     (20) environmental modifications. 
245.36     (b) The county agency must ensure that the funds are not 
246.1   used only to supplement and not to supplant services available 
246.2   through other public assistance or services programs. 
246.3      (c) Unless specified in statute, the service definitions 
246.4   and standards for alternative care services shall be the same as 
246.5   the service definitions and standards defined specified in the 
246.6   federally approved elderly waiver plan.  Except for the county 
246.7   agencies' approval of direct cash payments to clients as 
246.8   described in paragraph (j) or for a provider of supplies and 
246.9   equipment when the monthly cost of the supplies and equipment is 
246.10  less than $250, persons or agencies must be employed by or under 
246.11  a contract with the county agency or the public health nursing 
246.12  agency of the local board of health in order to receive funding 
246.13  under the alternative care program.  Supplies and equipment may 
246.14  be purchased from a vendor not certified to participate in the 
246.15  Medicaid program if the cost for the item is less than that of a 
246.16  Medicaid vendor.  
246.17     (d) The adult foster care rate shall be considered a 
246.18  difficulty of care payment and shall not include room and 
246.19  board.  The adult foster care daily rate shall be negotiated 
246.20  between the county agency and the foster care provider.  The 
246.21  rate established under this section shall not exceed 75 percent 
246.22  of the state average monthly nursing home payment for the case 
246.23  mix classification to which the individual receiving foster care 
246.24  is assigned, and it must allow for other alternative care 
246.25  services to be authorized by the case manager.  The alternative 
246.26  care payment for the foster care service in combination with the 
246.27  payment for other alternative care services, including case 
246.28  management, must not exceed the limit specified in subdivision 
246.29  4, paragraph (a), clause (6). 
246.30     (e) Personal care services may be provided by a personal 
246.31  care provider organization. must meet the service standards 
246.32  defined in the federally approved elderly waiver plan, except 
246.33  that a county agency may contract with a client's relative of 
246.34  the client who meets the relative hardship waiver requirement as 
246.35  defined in section 256B.0627, subdivision 4, paragraph (b), 
246.36  clause (10), to provide personal care services, but must ensure 
247.1   nursing if the county agency ensures supervision of this service 
247.2   by a registered nurse or mental health practitioner.  Covered 
247.3   personal care services defined in section 256B.0627, subdivision 
247.4   4, must meet applicable standards in Minnesota Rules, part 
247.5   9505.0335. 
247.6      (f) A county may use alternative care funds to purchase 
247.7   medical supplies and equipment without prior approval from the 
247.8   commissioner when:  (1) there is no other funding source; (2) 
247.9   the supplies and equipment are specified in the individual's 
247.10  care plan as medically necessary to enable the individual to 
247.11  remain in the community according to the criteria in Minnesota 
247.12  Rules, part 9505.0210, item A; and (3) the supplies and 
247.13  equipment represent an effective and appropriate use of 
247.14  alternative care funds.  A county may use alternative care funds 
247.15  to purchase supplies and equipment from a non-Medicaid certified 
247.16  vendor if the cost for the items is less than that of a Medicaid 
247.17  vendor.  A county is not required to contract with a provider of 
247.18  supplies and equipment if the monthly cost of the supplies and 
247.19  equipment is less than $250.  
247.20     (g) For purposes of this section, residential care services 
247.21  are services which are provided to individuals living in 
247.22  residential care homes.  Residential care homes are currently 
247.23  licensed as board and lodging establishments and are registered 
247.24  with the department of health as providing special 
247.25  services under section 157.17 and are not subject to 
247.26  registration under chapter 144D.  Residential care services are 
247.27  defined as "supportive services" and "health-related services."  
247.28  "Supportive services" means the provision of up to 24-hour 
247.29  supervision and oversight.  Supportive services includes:  (1) 
247.30  transportation, when provided by the residential care center 
247.31  home only; (2) socialization, when socialization is part of the 
247.32  plan of care, has specific goals and outcomes established, and 
247.33  is not diversional or recreational in nature; (3) assisting 
247.34  clients in setting up meetings and appointments; (4) assisting 
247.35  clients in setting up medical and social services; (5) providing 
247.36  assistance with personal laundry, such as carrying the client's 
248.1   laundry to the laundry room.  Assistance with personal laundry 
248.2   does not include any laundry, such as bed linen, that is 
248.3   included in the room and board rate.  "Health-related services" 
248.4   are limited to minimal assistance with dressing, grooming, and 
248.5   bathing and providing reminders to residents to take medications 
248.6   that are self-administered or providing storage for medications, 
248.7   if requested.  Individuals receiving residential care services 
248.8   cannot receive homemaking services funded under this section.  
248.9      (h) (g) For the purposes of this section, "assisted living" 
248.10  refers to supportive services provided by a single vendor to 
248.11  clients who reside in the same apartment building of three or 
248.12  more units which are not subject to registration under chapter 
248.13  144D and are licensed by the department of health as a class A 
248.14  home care provider or a class E home care provider.  Assisted 
248.15  living services are defined as up to 24-hour supervision, and 
248.16  oversight, supportive services as defined in clause (1), 
248.17  individualized home care aide tasks as defined in clause (2), 
248.18  and individualized home management tasks as defined in clause 
248.19  (3) provided to residents of a residential center living in 
248.20  their units or apartments with a full kitchen and bathroom.  A 
248.21  full kitchen includes a stove, oven, refrigerator, food 
248.22  preparation counter space, and a kitchen utensil storage 
248.23  compartment.  Assisted living services must be provided by the 
248.24  management of the residential center or by providers under 
248.25  contract with the management or with the county. 
248.26     (1) Supportive services include:  
248.27     (i) socialization, when socialization is part of the plan 
248.28  of care, has specific goals and outcomes established, and is not 
248.29  diversional or recreational in nature; 
248.30     (ii) assisting clients in setting up meetings and 
248.31  appointments; and 
248.32     (iii) providing transportation, when provided by the 
248.33  residential center only.  
248.34     Individuals receiving assisted living services will not 
248.35  receive both assisted living services and homemaking services.  
248.36  Individualized means services are chosen and designed 
249.1   specifically for each resident's needs, rather than provided or 
249.2   offered to all residents regardless of their illnesses, 
249.3   disabilities, or physical conditions.  
249.4      (2) Home care aide tasks means:  
249.5      (i) preparing modified diets, such as diabetic or low 
249.6   sodium diets; 
249.7      (ii) reminding residents to take regularly scheduled 
249.8   medications or to perform exercises; 
249.9      (iii) household chores in the presence of technically 
249.10  sophisticated medical equipment or episodes of acute illness or 
249.11  infectious disease; 
249.12     (iv) household chores when the resident's care requires the 
249.13  prevention of exposure to infectious disease or containment of 
249.14  infectious disease; and 
249.15     (v) assisting with dressing, oral hygiene, hair care, 
249.16  grooming, and bathing, if the resident is ambulatory, and if the 
249.17  resident has no serious acute illness or infectious disease.  
249.18  Oral hygiene means care of teeth, gums, and oral prosthetic 
249.19  devices.  
249.20     (3) Home management tasks means:  
249.21     (i) housekeeping; 
249.22     (ii) laundry; 
249.23     (iii) preparation of regular snacks and meals; and 
249.24     (iv) shopping.  
249.25     Individuals receiving assisted living services shall not 
249.26  receive both assisted living services and homemaking services.  
249.27  Individualized means services are chosen and designed 
249.28  specifically for each resident's needs, rather than provided or 
249.29  offered to all residents regardless of their illnesses, 
249.30  disabilities, or physical conditions.  Assisted living services 
249.31  as defined in this section shall not be authorized in boarding 
249.32  and lodging establishments licensed according to sections 
249.33  157.011 and 157.15 to 157.22. 
249.34     (i) (h) For establishments registered under chapter 144D, 
249.35  assisted living services under this section means either the 
249.36  services described and licensed in paragraph (g) and delivered 
250.1   by a class E home care provider licensed by the department of 
250.2   health or the services described under section 144A.4605 and 
250.3   delivered by an assisted living home care provider or a class A 
250.4   home care provider licensed by the commissioner of health. 
250.5      (j) For the purposes of this section, reimbursement (i) 
250.6   Payment for assisted living services and residential care 
250.7   services shall be a monthly rate negotiated and authorized by 
250.8   the county agency based on an individualized service plan for 
250.9   each resident and may not cover direct rent or food costs.  The 
250.10  rate 
250.11     (1) The individualized monthly negotiated payment for 
250.12  assisted living services as described in paragraph (g) or (h), 
250.13  and residential care services as described in paragraph (f), 
250.14  shall not exceed the nonfederal share in effect on July 1 of the 
250.15  state fiscal year for which the rate limit is being calculated 
250.16  of the greater of either the statewide or any of the geographic 
250.17  groups' weighted average monthly medical assistance nursing 
250.18  facility payment rate of the case mix resident class to which 
250.19  the 180-day alternative care eligible client would be assigned 
250.20  under Minnesota Rules, parts 9549.0050 to 9549.0059, unless the 
250.21  less the maintenance needs allowance as described in section 
250.22  256B.0915, subdivision 1d, paragraph (a), until the first day of 
250.23  the state fiscal year in which a resident assessment system, 
250.24  under section 256B.437, of nursing home rate determination is 
250.25  implemented.  Effective on the first day of the state fiscal 
250.26  year in which a resident assessment system, under section 
250.27  256B.437, of nursing home rate determination is implemented and 
250.28  the first day of each subsequent state fiscal year, the 
250.29  individualized monthly negotiated payment for the services 
250.30  described in this clause shall not exceed the limit described in 
250.31  this clause which was in effect on the last day of the previous 
250.32  state fiscal year and which has been adjusted by the greater of 
250.33  any legislatively adopted home and community-based services 
250.34  cost-of-living percentage increase or any legislatively adopted 
250.35  statewide percent rate increase for nursing facilities. 
250.36     (2) The individualized monthly negotiated payment for 
251.1   assisted living services are provided by a home care described 
251.2   under section 144A.4605 and delivered by a provider licensed by 
251.3   the department of health as a class A home care provider or an 
251.4   assisted living home care provider and are provided in a 
251.5   building that is registered as a housing with services 
251.6   establishment under chapter 144D and that provides 24-hour 
251.7   supervision in combination with the payment for other 
251.8   alternative care services, including case management, must not 
251.9   exceed the limit specified in subdivision 4, paragraph (a), 
251.10  clause (6). 
251.11     (k) For purposes of this section, companion services are 
251.12  defined as nonmedical care, supervision and oversight, provided 
251.13  to a functionally impaired adult.  Companions may assist the 
251.14  individual with such tasks as meal preparation, laundry and 
251.15  shopping, but do not perform these activities as discrete 
251.16  services.  The provision of companion services does not entail 
251.17  hands-on medical care.  Providers may also perform light 
251.18  housekeeping tasks which are incidental to the care and 
251.19  supervision of the recipient.  This service must be approved by 
251.20  the case manager as part of the care plan.  Companion services 
251.21  must be provided by individuals or organizations who are under 
251.22  contract with the local agency to provide the service.  Any 
251.23  person related to the waiver recipient by blood, marriage or 
251.24  adoption cannot be reimbursed under this service.  Persons 
251.25  providing companion services will be monitored by the case 
251.26  manager. 
251.27     (l) For purposes of this section, training for direct 
251.28  informal caregivers is defined as a classroom or home course of 
251.29  instruction which may include:  transfer and lifting skills, 
251.30  nutrition, personal and physical cares, home safety in a home 
251.31  environment, stress reduction and management, behavioral 
251.32  management, long-term care decision making, care coordination 
251.33  and family dynamics.  The training is provided to an informal 
251.34  unpaid caregiver of a 180-day eligible client which enables the 
251.35  caregiver to deliver care in a home setting with high levels of 
251.36  quality.  The training must be approved by the case manager as 
252.1   part of the individual care plan.  Individuals, agencies, and 
252.2   educational facilities which provide caregiver training and 
252.3   education will be monitored by the case manager. 
252.4      (m) (j) A county agency may make payment from their 
252.5   alternative care program allocation for "other services" 
252.6   provided to an alternative care program recipient if those 
252.7   services prevent, shorten, or delay institutionalization.  These 
252.8   services may which include use of "discretionary funds" for 
252.9   services that are not otherwise defined in this section and 
252.10  direct cash payments to the recipient client for the purpose of 
252.11  purchasing the recipient's services.  The following provisions 
252.12  apply to payments under this paragraph: 
252.13     (1) a cash payment to a client under this provision cannot 
252.14  exceed 80 percent of the monthly payment limit for that client 
252.15  as specified in subdivision 4, paragraph (a), clause (7) (6); 
252.16     (2) a county may not approve any cash payment for a client 
252.17  who meets either of the following: 
252.18     (i) has been assessed as having a dependency in 
252.19  orientation, unless the client has an authorized 
252.20  representative under section 256.476, subdivision 2, paragraph 
252.21  (g), or for a client who.  An "authorized representative" means 
252.22  an individual who is at least 18 years of age and is designated 
252.23  by the person or the person's legal representative to act on the 
252.24  person's behalf.  This individual may be a family member, 
252.25  guardian, representative payee, or other individual designated 
252.26  by the person or the person's legal representative, if any, to 
252.27  assist in purchasing and arranging for supports; or 
252.28     (ii) is concurrently receiving adult foster care, 
252.29  residential care, or assisted living services; 
252.30     (3) any service approved under this section must be a 
252.31  service which meets the purpose and goals of the program as 
252.32  listed in subdivision 1; 
252.33     (4) cash payments must also meet the criteria of and are 
252.34  governed by the procedures and liability protection established 
252.35  in section 256.476, subdivision 4, paragraphs (b) through (h), 
252.36  and recipients of cash grants must meet the requirements in 
253.1   section 256.476, subdivision 10; and cash payments to a person 
253.2   or a person's family will be provided through a monthly payment 
253.3   and be in the form of cash, voucher, or direct county payment to 
253.4   a vendor.  Fees or premiums assessed to the person for 
253.5   eligibility for health and human services are not reimbursable 
253.6   through this service option.  Services and goods purchased 
253.7   through cash payments must be identified in the person's 
253.8   individualized care plan and must meet all of the following 
253.9   criteria: 
253.10     (i) they must be over and above the normal cost of caring 
253.11  for the person if the person did not have functional 
253.12  limitations; 
253.13     (ii) they must be directly attributable to the person's 
253.14  functional limitations; 
253.15     (iii) they must have the potential to be effective at 
253.16  meeting the goals of the program; 
253.17     (iv) they must be consistent with the needs identified in 
253.18  the individualized service plan.  The service plan shall specify 
253.19  the needs of the person and family, the form and amount of 
253.20  payment, the items and services to be reimbursed, and the 
253.21  arrangements for management of the individual grant; and 
253.22     (v) the person, the person's family, or the legal 
253.23  representative shall be provided sufficient information to 
253.24  ensure an informed choice of alternatives.  The local agency 
253.25  shall document this information in the person's care plan, 
253.26  including the type and level of expenditures to be reimbursed; 
253.27     (4) the county, lead agency under contract, or tribal 
253.28  government under contract to administer the alternative care 
253.29  program shall not be liable for damages, injuries, or 
253.30  liabilities sustained through the purchase of direct supports or 
253.31  goods by the person, the person's family, or the authorized 
253.32  representative with funds received through the cash payments 
253.33  under this section.  Liabilities include, but are not limited 
253.34  to, workers' compensation, the Federal Insurance Contributions 
253.35  Act (FICA), or the Federal Unemployment Tax Act (FUTA); 
253.36     (5) persons receiving grants under this section shall have 
254.1   the following responsibilities: 
254.2      (i) spend the grant money in a manner consistent with their 
254.3   individualized service plan with the local agency; 
254.4      (ii) notify the local agency of any necessary changes in 
254.5   the grant-expenditures; 
254.6      (iii) arrange and pay for supports; and 
254.7      (iv) inform the local agency of areas where they have 
254.8   experienced difficulty securing or maintaining supports; and 
254.9      (5) (6) the county shall report client outcomes, services, 
254.10  and costs under this paragraph in a manner prescribed by the 
254.11  commissioner. 
254.12     (k) Upon implementation of direct cash payments to clients 
254.13  under this section, any person determined eligible for the 
254.14  alternative care program who chooses a cash payment approved by 
254.15  the county agency shall receive the cash payment under this 
254.16  section and not under section 256.476 unless the person was 
254.17  receiving a consumer support grant under section 256.476 before 
254.18  implementation of direct cash payments under this section. 
254.19     Sec. 19.  Minnesota Statutes 2000, section 256B.0913, 
254.20  subdivision 6, is amended to read: 
254.21     Subd. 6.  [ALTERNATIVE CARE PROGRAM ADMINISTRATION.] The 
254.22  alternative care program is administered by the county agency.  
254.23  This agency is the lead agency responsible for the local 
254.24  administration of the alternative care program as described in 
254.25  this section.  However, it may contract with the public health 
254.26  nursing service to be the lead agency.  The commissioner may 
254.27  contract with federally recognized Indian tribes with a 
254.28  reservation in Minnesota to serve as the lead agency responsible 
254.29  for the local administration of the alternative care program as 
254.30  described in the contract. 
254.31     Sec. 20.  Minnesota Statutes 2000, section 256B.0913, 
254.32  subdivision 7, is amended to read: 
254.33     Subd. 7.  [CASE MANAGEMENT.] Providers of case management 
254.34  services for persons receiving services funded by the 
254.35  alternative care program must meet the qualification 
254.36  requirements and standards specified in section 256B.0915, 
255.1   subdivision 1b.  The case manager must ensure the health and 
255.2   safety of the individual client and not approve alternative care 
255.3   funding for a client in any setting in which the case manager 
255.4   cannot reasonably ensure the client's health and safety.  The 
255.5   case manager is responsible for the cost-effectiveness of the 
255.6   alternative care individual care plan and must not approve any 
255.7   care plan in which the cost of services funded by alternative 
255.8   care and client contributions exceeds the limit specified in 
255.9   section 256B.0915, subdivision 3, paragraph (b).  The county may 
255.10  allow a case manager employed by the county to delegate certain 
255.11  aspects of the case management activity to another individual 
255.12  employed by the county provided there is oversight of the 
255.13  individual by the case manager.  The case manager may not 
255.14  delegate those aspects which require professional judgment 
255.15  including assessments, reassessments, and care plan development. 
255.16     Sec. 21.  Minnesota Statutes 2000, section 256B.0913, 
255.17  subdivision 8, is amended to read: 
255.18     Subd. 8.  [REQUIREMENTS FOR INDIVIDUAL CARE PLAN.] (a) The 
255.19  case manager shall implement the plan of care for each 180-day 
255.20  eligible alternative care client and ensure that a client's 
255.21  service needs and eligibility are reassessed at least every 12 
255.22  months.  The plan shall include any services prescribed by the 
255.23  individual's attending physician as necessary to allow the 
255.24  individual to remain in a community setting.  In developing the 
255.25  individual's care plan, the case manager should include the use 
255.26  of volunteers from families and neighbors, religious 
255.27  organizations, social clubs, and civic and service organizations 
255.28  to support the formal home care services.  The county shall be 
255.29  held harmless for damages or injuries sustained through the use 
255.30  of volunteers under this subdivision including workers' 
255.31  compensation liability.  The lead agency shall provide 
255.32  documentation to the commissioner verifying that the 
255.33  individual's alternative care is not available at that time 
255.34  through any other public assistance or service program.  The 
255.35  lead agency shall provide documentation in each individual's 
255.36  plan of care and, if requested, to the commissioner that the 
256.1   most cost-effective alternatives available have been offered to 
256.2   the individual and that the individual was free to choose among 
256.3   available qualified providers, both public and private.  The 
256.4   case manager must give the individual a ten-day written notice 
256.5   of any decrease in or termination of alternative care services. 
256.6      (b) If the county administering alternative care services 
256.7   is different than the county of financial responsibility, the 
256.8   care plan may be implemented without the approval of the county 
256.9   of financial responsibility. 
256.10     Sec. 22.  Minnesota Statutes 2000, section 256B.0913, 
256.11  subdivision 9, is amended to read: 
256.12     Subd. 9.  [CONTRACTING PROVISIONS FOR PROVIDERS.] The lead 
256.13  agency shall document to the commissioner that the agency made 
256.14  reasonable efforts to inform potential providers of the 
256.15  anticipated need for services under the alternative care program 
256.16  or waiver programs under sections 256B.0915 and 256B.49, 
256.17  including a minimum of 14 days' written advance notice of the 
256.18  opportunity to be selected as a service provider and an annual 
256.19  public meeting with providers to explain and review the criteria 
256.20  for selection.  The lead agency shall also document to the 
256.21  commissioner that the agency allowed potential providers an 
256.22  opportunity to be selected to contract with the county agency.  
256.23  Funds reimbursed to counties under this subdivision Alternative 
256.24  care funds paid to service providers are subject to audit by the 
256.25  commissioner for fiscal and utilization control.  
256.26     The lead agency must select providers for contracts or 
256.27  agreements using the following criteria and other criteria 
256.28  established by the county: 
256.29     (1) the need for the particular services offered by the 
256.30  provider; 
256.31     (2) the population to be served, including the number of 
256.32  clients, the length of time services will be provided, and the 
256.33  medical condition of clients; 
256.34     (3) the geographic area to be served; 
256.35     (4) quality assurance methods, including appropriate 
256.36  licensure, certification, or standards, and supervision of 
257.1   employees when needed; 
257.2      (5) rates for each service and unit of service exclusive of 
257.3   county administrative costs; 
257.4      (6) evaluation of services previously delivered by the 
257.5   provider; and 
257.6      (7) contract or agreement conditions, including billing 
257.7   requirements, cancellation, and indemnification. 
257.8      The county must evaluate its own agency services under the 
257.9   criteria established for other providers.  The county shall 
257.10  provide a written statement of the reasons for not selecting 
257.11  providers. 
257.12     Sec. 23.  Minnesota Statutes 2000, section 256B.0913, 
257.13  subdivision 10, is amended to read: 
257.14     Subd. 10.  [ALLOCATION FORMULA.] (a) The alternative care 
257.15  appropriation for fiscal years 1992 and beyond shall cover 
257.16  only 180-day alternative care eligible clients.  Prior to July 1 
257.17  of each year, the commissioner shall allocate to county agencies 
257.18  the state funds available for alternative care for persons 
257.19  eligible under subdivision 2. 
257.20     (b) Prior to July 1 of each year, the commissioner shall 
257.21  allocate to county agencies the state funds available for 
257.22  alternative care for persons eligible under subdivision 2.  The 
257.23  allocation for fiscal year 1992 shall be calculated using a base 
257.24  that is adjusted to exclude the medical assistance share of 
257.25  alternative care expenditures.  The adjusted base is calculated 
257.26  by multiplying each county's allocation for fiscal year 1991 by 
257.27  the percentage of county alternative care expenditures for 
257.28  180-day eligible clients.  The percentage is determined based on 
257.29  expenditures for services rendered in fiscal year 1989 or 
257.30  calendar year 1989, whichever is greater.  The adjusted base for 
257.31  each county is the county's current fiscal year base allocation 
257.32  plus any targeted funds approved during the current fiscal 
257.33  year.  Calculations for paragraphs (c) and (d) are to be made as 
257.34  follows:  for each county, the determination of alternative care 
257.35  program expenditures shall be based on payments for services 
257.36  rendered from April 1 through March 31 in the base year, to the 
258.1   extent that claims have been submitted and paid by June 1 of 
258.2   that year.  
258.3      (c) If the county alternative care program expenditures for 
258.4   180-day eligible clients as defined in paragraph (b) are 95 
258.5   percent or more of its the county's adjusted base allocation, 
258.6   the allocation for the next fiscal year is 100 percent of the 
258.7   adjusted base, plus inflation to the extent that inflation is 
258.8   included in the state budget. 
258.9      (d) If the county alternative care program expenditures for 
258.10  180-day eligible clients as defined in paragraph (b) are less 
258.11  than 95 percent of its the county's adjusted base allocation, 
258.12  the allocation for the next fiscal year is the adjusted base 
258.13  allocation less the amount of unspent funds below the 95 percent 
258.14  level. 
258.15     (e) For fiscal year 1992 only, a county may receive an 
258.16  increased allocation if annualized service costs for the month 
258.17  of May 1991 for 180-day eligible clients are greater than the 
258.18  allocation otherwise determined.  A county may apply for this 
258.19  increase by reporting projected expenditures for May to the 
258.20  commissioner by June 1, 1991.  The amount of the allocation may 
258.21  exceed the amount calculated in paragraph (b).  The projected 
258.22  expenditures for May must be based on actual 180-day eligible 
258.23  client caseload and the individual cost of clients' care plans.  
258.24  If a county does not report its expenditures for May, the amount 
258.25  in paragraph (c) or (d) shall be used. 
258.26     (f) Calculations for paragraphs (c) and (d) are to be made 
258.27  as follows:  for each county, the determination of expenditures 
258.28  shall be based on payments for services rendered from April 1 
258.29  through March 31 in the base year, to the extent that claims 
258.30  have been submitted by June 1 of that year.  Calculations for 
258.31  paragraphs (c) and (d) must also include the funds transferred 
258.32  to the consumer support grant program for clients who have 
258.33  transferred to that program from April 1 through March 31 in the 
258.34  base year.  
258.35     (g) For the biennium ending June 30, 2001, the allocation 
258.36  of state funds to county agencies shall be calculated as 
259.1   described in paragraphs (c) and (d).  If the annual legislative 
259.2   appropriation for the alternative care program is inadequate to 
259.3   fund the combined county allocations for fiscal year 2000 or 
259.4   2001 a biennium, the commissioner shall distribute to each 
259.5   county the entire annual appropriation as that county's 
259.6   percentage of the computed base as calculated in paragraph 
259.7   (f) paragraphs (c) and (d). 
259.8      Sec. 24.  Minnesota Statutes 2000, section 256B.0913, 
259.9   subdivision 11, is amended to read: 
259.10     Subd. 11.  [TARGETED FUNDING.] (a) The purpose of targeted 
259.11  funding is to make additional money available to counties with 
259.12  the greatest need.  Targeted funds are not intended to be 
259.13  distributed equitably among all counties, but rather, allocated 
259.14  to those with long-term care strategies that meet state goals. 
259.15     (b) The funds available for targeted funding shall be the 
259.16  total appropriation for each fiscal year minus county 
259.17  allocations determined under subdivision 10 as adjusted for any 
259.18  inflation increases provided in appropriations for the biennium. 
259.19     (c) The commissioner shall allocate targeted funds to 
259.20  counties that demonstrate to the satisfaction of the 
259.21  commissioner that they have developed feasible plans to increase 
259.22  alternative care spending.  In making targeted funding 
259.23  allocations, the commissioner shall use the following priorities:
259.24     (1) counties that received a lower allocation in fiscal 
259.25  year 1991 than in fiscal year 1990.  Counties remain in this 
259.26  priority until they have been restored to their fiscal year 1990 
259.27  level plus inflation; 
259.28     (2) counties that sustain a base allocation reduction for 
259.29  failure to spend 95 percent of the allocation if they 
259.30  demonstrate that the base reduction should be restored; 
259.31     (3) counties that propose projects to divert community 
259.32  residents from nursing home placement or convert nursing home 
259.33  residents to community living; and 
259.34     (4) counties that can otherwise justify program growth by 
259.35  demonstrating the existence of waiting lists, demographically 
259.36  justified needs, or other unmet needs. 
260.1      (d) Counties that would receive targeted funds according to 
260.2   paragraph (c) must demonstrate to the commissioner's 
260.3   satisfaction that the funds would be appropriately spent by 
260.4   showing how the funds would be used to further the state's 
260.5   alternative care goals as described in subdivision 1, and that 
260.6   the county has the administrative and service delivery 
260.7   capability to use them.  
260.8      (e) The commissioner shall request applications by June 1 
260.9   each year, for county agencies to apply for targeted funds by 
260.10  November 1 of each year.  The counties selected for targeted 
260.11  funds shall be notified of the amount of their additional 
260.12  funding by August 1 of each year.  Targeted funds allocated to a 
260.13  county agency in one year shall be treated as part of the 
260.14  county's base allocation for that year in determining 
260.15  allocations for subsequent years.  No reallocations between 
260.16  counties shall be made. 
260.17     (f) The allocation for each year after fiscal year 1992 
260.18  shall be determined using the previous fiscal year's allocation, 
260.19  including any targeted funds, as the base and then applying the 
260.20  criteria under subdivision 10, paragraphs (c), (d), and (f), to 
260.21  the current year's expenditures. 
260.22     Sec. 25.  Minnesota Statutes 2000, section 256B.0913, 
260.23  subdivision 12, is amended to read: 
260.24     Subd. 12.  [CLIENT PREMIUMS.] (a) A premium is required for 
260.25  all 180-day alternative care eligible clients to help pay for 
260.26  the cost of participating in the program.  The amount of the 
260.27  premium for the alternative care client shall be determined as 
260.28  follows: 
260.29     (1) when the alternative care client's income less 
260.30  recurring and predictable medical expenses is greater than the 
260.31  medical assistance income standard recipient's maintenance needs 
260.32  allowance as defined in section 256B.0915, subdivision 1d, 
260.33  paragraph (a), but less than 150 percent of the federal poverty 
260.34  guideline effective on July 1 of the state fiscal year in which 
260.35  the premium is being computed, and total assets are less than 
260.36  $10,000, the fee is zero; 
261.1      (2) when the alternative care client's income less 
261.2   recurring and predictable medical expenses is greater than 150 
261.3   percent of the federal poverty guideline effective on July 1 of 
261.4   the state fiscal year in which the premium is being computed, 
261.5   and total assets are less than $10,000, the fee is 25 percent of 
261.6   the cost of alternative care services or the difference between 
261.7   150 percent of the federal poverty guideline effective on July 1 
261.8   of the state fiscal year in which the premium is being computed 
261.9   and the client's income less recurring and predictable medical 
261.10  expenses, whichever is less; and 
261.11     (3) when the alternative care client's total assets are 
261.12  greater than $10,000, the fee is 25 percent of the cost of 
261.13  alternative care services.  
261.14     For married persons, total assets are defined as the total 
261.15  marital assets less the estimated community spouse asset 
261.16  allowance, under section 256B.059, if applicable.  For married 
261.17  persons, total income is defined as the client's income less the 
261.18  monthly spousal allotment, under section 256B.058. 
261.19     All alternative care services except case management shall 
261.20  be included in the estimated costs for the purpose of 
261.21  determining 25 percent of the costs. 
261.22     The monthly premium shall be calculated based on the cost 
261.23  of the first full month of alternative care services and shall 
261.24  continue unaltered until the next reassessment is completed or 
261.25  at the end of 12 months, whichever comes first.  Premiums are 
261.26  due and payable each month alternative care services are 
261.27  received unless the actual cost of the services is less than the 
261.28  premium. 
261.29     (b) The fee shall be waived by the commissioner when: 
261.30     (1) a person who is residing in a nursing facility is 
261.31  receiving case management only; 
261.32     (2) a person is applying for medical assistance; 
261.33     (3) a married couple is requesting an asset assessment 
261.34  under the spousal impoverishment provisions; 
261.35     (4) a person is a medical assistance recipient, but has 
261.36  been approved for alternative care-funded assisted living 
262.1   services; 
262.2      (5) a person is found eligible for alternative care, but is 
262.3   not yet receiving alternative care services; or 
262.4      (6) (5) a person's fee under paragraph (a) is less than $25.
262.5      (c) The county agency must collect the premium from the 
262.6   client and forward the amounts collected to the commissioner in 
262.7   the manner and at the times prescribed by the commissioner.  
262.8   Money collected must be deposited in the general fund and is 
262.9   appropriated to the commissioner for the alternative care 
262.10  program.  The client must supply the county with the client's 
262.11  social security number at the time of application.  If a client 
262.12  fails or refuses to pay the premium due, the county shall supply 
262.13  the commissioner with the client's social security number and 
262.14  other information the commissioner requires to collect the 
262.15  premium from the client.  The commissioner shall collect unpaid 
262.16  premiums using the Revenue Recapture Act in chapter 270A and 
262.17  other methods available to the commissioner.  The commissioner 
262.18  may require counties to inform clients of the collection 
262.19  procedures that may be used by the state if a premium is not 
262.20  paid.  
262.21     (d) The commissioner shall begin to adopt emergency or 
262.22  permanent rules governing client premiums within 30 days after 
262.23  July 1, 1991, including criteria for determining when services 
262.24  to a client must be terminated due to failure to pay a premium.  
262.25     Sec. 26.  Minnesota Statutes 2000, section 256B.0913, 
262.26  subdivision 13, is amended to read: 
262.27     Subd. 13.  [COUNTY BIENNIAL PLAN.] The county biennial plan 
262.28  for the preadmission screening program long-term care 
262.29  consultation services under section 256B.0911, the alternative 
262.30  care program under this section, and waivers for the elderly 
262.31  under section 256B.0915, and waivers for the disabled under 
262.32  section 256B.49, shall be incorporated into the biennial 
262.33  Community Social Services Act plan and shall meet the 
262.34  regulations and timelines of that plan.  This county biennial 
262.35  plan shall include: 
262.36     (1) information on the administration of the preadmission 
263.1   screening program; 
263.2      (2) information on the administration of the home and 
263.3   community-based services waivers for the elderly under section 
263.4   256B.0915, and for the disabled under section 256B.49; and 
263.5      (3) information on the administration of the alternative 
263.6   care program. 
263.7      Sec. 27.  Minnesota Statutes 2000, section 256B.0913, 
263.8   subdivision 14, is amended to read: 
263.9      Subd. 14.  [REIMBURSEMENT PAYMENT AND RATE ADJUSTMENTS.] (a)
263.10  Reimbursement Payment for expenditures for the provided 
263.11  alternative care services as approved by the client's case 
263.12  manager shall be through the invoice processing procedures of 
263.13  the department's Medicaid Management Information System (MMIS).  
263.14  To receive reimbursement payment, the county or vendor must 
263.15  submit invoices within 12 months following the date of service.  
263.16  The county agency and its vendors under contract shall not be 
263.17  reimbursed for services which exceed the county allocation. 
263.18     (b) If a county collects less than 50 percent of the client 
263.19  premiums due under subdivision 12, the commissioner may withhold 
263.20  up to three percent of the county's final alternative care 
263.21  program allocation determined under subdivisions 10 and 11. 
263.22     (c) The county shall negotiate individual rates with 
263.23  vendors and may be reimbursed authorize service payment for 
263.24  actual costs up to the greater of the county's current approved 
263.25  rate or 60 percent of the maximum rate in fiscal year 1994 and 
263.26  65 percent of the maximum rate in fiscal year 1995 for each 
263.27  alternative care service.  Notwithstanding any other rule or 
263.28  statutory provision to the contrary, the commissioner shall not 
263.29  be authorized to increase rates by an annual inflation factor, 
263.30  unless so authorized by the legislature. 
263.31     (d) On July 1, 1993, the commissioner shall increase the 
263.32  maximum rate for home delivered meals to $4.50 per meal To 
263.33  improve access to community services and eliminate payment 
263.34  disparities between the alternative care program and the elderly 
263.35  waiver program, the commissioner shall establish statewide 
263.36  maximum service rate limits and eliminate county-specific 
264.1   service rate limits. 
264.2      (1) Effective July 1, 2001, for service rate limits, except 
264.3   those in subdivision 5, paragraphs (d) and (i), the rate limit 
264.4   for each service shall be the greater of the alternative care 
264.5   statewide maximum rate or the elderly waiver statewide maximum 
264.6   rate. 
264.7      (2) Counties may negotiate individual service rates with 
264.8   vendors for actual costs up to the statewide maximum service 
264.9   rate limit. 
264.10     Sec. 28.  Minnesota Statutes 2000, section 256B.0915, 
264.11  subdivision 1d, is amended to read: 
264.12     Subd. 1d.  [POSTELIGIBILITY TREATMENT OF INCOME AND 
264.13  RESOURCES FOR ELDERLY WAIVER.] (a) Notwithstanding the 
264.14  provisions of section 256B.056, the commissioner shall make the 
264.15  following amendment to the medical assistance elderly waiver 
264.16  program effective July 1, 1999, or upon federal approval, 
264.17  whichever is later. 
264.18     A recipient's maintenance needs will be an amount equal to 
264.19  the Minnesota supplemental aid equivalent rate as defined in 
264.20  section 256I.03, subdivision 5, plus the medical assistance 
264.21  personal needs allowance as defined in section 256B.35, 
264.22  subdivision 1, paragraph (a), when applying posteligibility 
264.23  treatment of income rules to the gross income of elderly waiver 
264.24  recipients, except for individuals whose income is in excess of 
264.25  the special income standard according to Code of Federal 
264.26  Regulations, title 42, section 435.236.  Recipient maintenance 
264.27  needs shall be adjusted under this provision each July 1. 
264.28     (b) The commissioner of human services shall secure 
264.29  approval of additional elderly waiver slots sufficient to serve 
264.30  persons who will qualify under the revised income standard 
264.31  described in paragraph (a) before implementing section 
264.32  256B.0913, subdivision 16. 
264.33     (c) In implementing this subdivision, the commissioner 
264.34  shall consider allowing persons who would otherwise be eligible 
264.35  for the alternative care program but would qualify for the 
264.36  elderly waiver with a spenddown to remain on the alternative 
265.1   care program. 
265.2      Sec. 29.  Minnesota Statutes 2000, section 256B.0915, 
265.3   subdivision 3, is amended to read: 
265.4      Subd. 3.  [LIMITS OF CASES, RATES, REIMBURSEMENT PAYMENTS, 
265.5   AND FORECASTING.] (a) The number of medical assistance waiver 
265.6   recipients that a county may serve must be allocated according 
265.7   to the number of medical assistance waiver cases open on July 1 
265.8   of each fiscal year.  Additional recipients may be served with 
265.9   the approval of the commissioner. 
265.10     (b) The monthly limit for the cost of waivered services to 
265.11  an individual elderly waiver client shall be the statewide 
265.12  average payment weighted average monthly nursing facility rate 
265.13  of the case mix resident class to which the elderly waiver 
265.14  client would be assigned under the medical assistance case mix 
265.15  reimbursement system.  Minnesota Rules, parts 9549.0050 to 
265.16  9549.0059, less the recipient's maintenance needs allowance as 
265.17  described in subdivision 1d, paragraph (a), until the first day 
265.18  of the state fiscal year in which the resident assessment system 
265.19  as described in section 256B.437 for nursing home rate 
265.20  determination is implemented.  Effective on the first day of the 
265.21  state fiscal year in which the resident assessment system as 
265.22  described in section 256B.437 for nursing home rate 
265.23  determination is implemented and the first day of each 
265.24  subsequent state fiscal year, the monthly limit for the cost of 
265.25  waivered services to an individual elderly waiver client shall 
265.26  be the rate of the case mix resident class to which the waiver 
265.27  client would be assigned under Minnesota Rules, parts 9549.0050 
265.28  to 9549.0059, in effect on the last day of the previous state 
265.29  fiscal year, adjusted by the greater of any legislatively 
265.30  adopted home and community-based services cost-of-living 
265.31  percentage increase or any legislatively adopted statewide 
265.32  percent rate increase for nursing facilities. 
265.33     (c) If extended medical supplies and equipment or 
265.34  adaptations environmental modifications are or will be purchased 
265.35  for an elderly waiver services recipient, the client, the costs 
265.36  may be prorated on a monthly basis throughout the year in which 
266.1   they are purchased for up to 12 consecutive months beginning 
266.2   with the month of purchase.  If the monthly cost of a 
266.3   recipient's other waivered services exceeds the monthly limit 
266.4   established in this paragraph (b), the annual cost of the all 
266.5   waivered services shall be determined.  In this event, the 
266.6   annual cost of all waivered services shall not exceed 12 times 
266.7   the monthly limit calculated in this paragraph.  The statewide 
266.8   average payment rate is calculated by determining the statewide 
266.9   average monthly nursing home rate, effective July 1 of the 
266.10  fiscal year in which the cost is incurred, less the statewide 
266.11  average monthly income of nursing home residents who are age 65 
266.12  or older, and who are medical assistance recipients in the month 
266.13  of March of the previous state fiscal year.  The annual cost 
266.14  divided by 12 of elderly or disabled waivered services of 
266.15  waivered services as described in paragraph (b).  
266.16     (d) For a person who is a nursing facility resident at the 
266.17  time of requesting a determination of eligibility for elderly or 
266.18  disabled waivered services shall be the greater of the monthly 
266.19  payment for:  (i), a monthly conversion limit for the cost of 
266.20  elderly waivered services may be requested.  The monthly 
266.21  conversion limit for the cost of elderly waiver services shall 
266.22  be the resident class assigned under Minnesota Rules, parts 
266.23  9549.0050 to 9549.0059, for that resident in the nursing 
266.24  facility where the resident currently resides; or (ii) the 
266.25  statewide average payment of the case mix resident class to 
266.26  which the resident would be assigned under the medical 
266.27  assistance case mix reimbursement system, provided that until 
266.28  July 1 of the state fiscal year in which the resident assessment 
266.29  system as described in section 256B.437 for nursing home rate 
266.30  determination is implemented.  Effective on July 1 of the state 
266.31  fiscal year in which the resident assessment system as described 
266.32  in section 256B.437 for nursing home rate determination is 
266.33  implemented, the monthly conversion limit for the cost of 
266.34  elderly waiver services shall be the per diem nursing facility 
266.35  rate as determined by the resident assessment system as 
266.36  described in section 256B.437 for that resident in the nursing 
267.1   facility where the resident currently resides multiplied by 365 
267.2   and divided by 12, less the recipient's maintenance needs 
267.3   allowance as described in subdivision 1d.  The limit under this 
267.4   clause only applies to persons discharged from a nursing 
267.5   facility after a minimum 30-day stay and found eligible for 
267.6   waivered services on or after July 1, 1997.  The following costs 
267.7   must be included in determining the total monthly costs for the 
267.8   waiver client: 
267.9      (1) cost of all waivered services, including extended 
267.10  medical supplies and equipment and environmental modifications; 
267.11  and 
267.12     (2) cost of skilled nursing, home health aide, and personal 
267.13  care services reimbursable by medical assistance.  
267.14     (c) (e) Medical assistance funding for skilled nursing 
267.15  services, private duty nursing, home health aide, and personal 
267.16  care services for waiver recipients must be approved by the case 
267.17  manager and included in the individual care plan. 
267.18     (d) For both the elderly waiver and the nursing facility 
267.19  disabled waiver, a county may purchase extended supplies and 
267.20  equipment without prior approval from the commissioner when 
267.21  there is no other funding source and the supplies and equipment 
267.22  are specified in the individual's care plan as medically 
267.23  necessary to enable the individual to remain in the community 
267.24  according to the criteria in Minnesota Rules, part 9505.0210, 
267.25  items A and B.  (f) A county is not required to contract with a 
267.26  provider of supplies and equipment if the monthly cost of the 
267.27  supplies and equipment is less than $250.  
267.28     (e) (g) The adult foster care daily rate for the elderly 
267.29  and disabled waivers shall be considered a difficulty of care 
267.30  payment and shall not include room and board.  The adult foster 
267.31  care service rate shall be negotiated between the county agency 
267.32  and the foster care provider.  The rate established under this 
267.33  section shall not exceed the state average monthly nursing home 
267.34  payment for the case mix classification to which the individual 
267.35  receiving foster care is assigned; the rate must allow for other 
267.36  waiver and medical assistance home care services to be 
268.1   authorized by the case manager.  The elderly waiver payment for 
268.2   the foster care service in combination with the payment for all 
268.3   other elderly waiver services, including case management, must 
268.4   not exceed the limit specified in paragraph (b). 
268.5      (f) The assisted living and residential care service rates 
268.6   for elderly and community alternatives for disabled individuals 
268.7   (CADI) waivers shall be made to the vendor as a monthly rate 
268.8   negotiated with the county agency based on an individualized 
268.9   service plan for each resident.  The rate shall not exceed the 
268.10  nonfederal share of the greater of either the statewide or any 
268.11  of the geographic groups' weighted average monthly medical 
268.12  assistance nursing facility payment rate of the case mix 
268.13  resident class to which the elderly or disabled client would be 
268.14  assigned under Minnesota Rules, parts 9549.0050 to 9549.0059, 
268.15  unless the services are provided by a home care provider 
268.16  licensed by the department of health and are provided in a 
268.17  building that is registered as a housing with services 
268.18  establishment under chapter 144D and that provides 24-hour 
268.19  supervision.  For alternative care assisted living projects 
268.20  established under Laws 1988, chapter 689, article 2, section 
268.21  256, monthly rates may not exceed 65 percent of the greater of 
268.22  either the statewide or any of the geographic groups' weighted 
268.23  average monthly medical assistance nursing facility payment rate 
268.24  for the case mix resident class to which the elderly or disabled 
268.25  client would be assigned under Minnesota Rules, parts 9549.0050 
268.26  to 9549.0059.  The rate may not cover direct rent or food costs. 
268.27     (h) Payment for assisted living service shall be a monthly 
268.28  rate negotiated and authorized by the county agency based on an 
268.29  individualized service plan for each resident and may not cover 
268.30  direct rent or food costs. 
268.31     (1) The individualized monthly negotiated payment for 
268.32  assisted living services as described in section 256B.0913, 
268.33  subdivision 5, paragraph (g) or (h), and residential care 
268.34  services as described in section 256B.0913, subdivision 5, 
268.35  paragraph (f), shall not exceed the nonfederal share, in effect 
268.36  on July 1 of the state fiscal year for which the rate limit is 
269.1   being calculated, of the greater of either the statewide or any 
269.2   of the geographic groups' weighted average monthly nursing 
269.3   facility rate of the case mix resident class to which the 
269.4   elderly waiver eligible client would be assigned under Minnesota 
269.5   Rules, parts 9549.0050 to 9549.0059, less the maintenance needs 
269.6   allowance as described in subdivision 1d, paragraph (a), until 
269.7   the July 1 of the state fiscal year in which the resident 
269.8   assessment system as described in section 256B.437 for nursing 
269.9   home rate determination is implemented.  Effective on July 1 of 
269.10  the state fiscal year in which the resident assessment system as 
269.11  described in section 256B.437 for nursing home rate 
269.12  determination is implemented and July 1 of each subsequent state 
269.13  fiscal year, the individualized monthly negotiated payment for 
269.14  the services described in this clause shall not exceed the limit 
269.15  described in this clause which was in effect on June 30 of the 
269.16  previous state fiscal year and which has been adjusted by the 
269.17  greater of any legislatively adopted home and community-based 
269.18  services cost-of-living percentage increase or any legislatively 
269.19  adopted statewide percent rate increase for nursing facilities. 
269.20     (2) The individualized monthly negotiated payment for 
269.21  assisted living services described in section 144A.4605 and 
269.22  delivered by a provider licensed by the department of health as 
269.23  a Class A home care provider or an assisted living home care 
269.24  provider and provided in a building that is registered as a 
269.25  housing with services establishment under chapter 144D and that 
269.26  provides 24-hour supervision in combination with the payment for 
269.27  other elderly waiver services, including case management, must 
269.28  not exceed the limit specified in paragraph (b). 
269.29     (g) (i) The county shall negotiate individual service rates 
269.30  with vendors and may be reimbursed authorize payment for actual 
269.31  costs up to the greater of the county's current approved rate or 
269.32  60 percent of the maximum rate in fiscal year 1994 and 65 
269.33  percent of the maximum rate in fiscal year 1995 for each service 
269.34  within each program.  Persons or agencies must be employed by or 
269.35  under a contract with the county agency or the public health 
269.36  nursing agency of the local board of health in order to receive 
270.1   funding under the elderly waiver program, except as a provider 
270.2   of supplies and equipment when the monthly cost of the supplies 
270.3   and equipment is less than $250.  
270.4      (h) On July 1, 1993, the commissioner shall increase the 
270.5   maximum rate for home-delivered meals to $4.50 per meal. 
270.6      (i) (j) Reimbursement for the medical assistance recipients 
270.7   under the approved waiver shall be made from the medical 
270.8   assistance account through the invoice processing procedures of 
270.9   the department's Medicaid Management Information System (MMIS), 
270.10  only with the approval of the client's case manager.  The budget 
270.11  for the state share of the Medicaid expenditures shall be 
270.12  forecasted with the medical assistance budget, and shall be 
270.13  consistent with the approved waiver.  
270.14     (k) To improve access to community services and eliminate 
270.15  payment disparities between the alternative care program and the 
270.16  elderly waiver, the commissioner shall establish statewide 
270.17  maximum service rate limits and eliminate county-specific 
270.18  service rate limits. 
270.19     (1) Effective July 1, 2001, for service rate limits, except 
270.20  those described or defined in paragraphs (g) and (h), the rate 
270.21  limit for each service shall be the greater of the alternative 
270.22  care statewide maximum rate or the elderly waiver statewide 
270.23  maximum rate. 
270.24     (2) Counties may negotiate individual service rates with 
270.25  vendors for actual costs up to the statewide maximum service 
270.26  rate limit. 
270.27     (j) (l) Beginning July 1, 1991, the state shall reimburse 
270.28  counties according to the payment schedule in section 256.025 
270.29  for the county share of costs incurred under this subdivision on 
270.30  or after January 1, 1991, for individuals who are receiving 
270.31  medical assistance. 
270.32     (k) For the community alternatives for disabled individuals 
270.33  waiver, and nursing facility disabled waivers, county may use 
270.34  waiver funds for the cost of minor adaptations to a client's 
270.35  residence or vehicle without prior approval from the 
270.36  commissioner if there is no other source of funding and the 
271.1   adaptation: 
271.2      (1) is necessary to avoid institutionalization; 
271.3      (2) has no utility apart from the needs of the client; and 
271.4      (3) meets the criteria in Minnesota Rules, part 9505.0210, 
271.5   items A and B.  
271.6   For purposes of this subdivision, "residence" means the client's 
271.7   own home, the client's family residence, or a family foster 
271.8   home.  For purposes of this subdivision, "vehicle" means the 
271.9   client's vehicle, the client's family vehicle, or the client's 
271.10  family foster home vehicle. 
271.11     (l) The commissioner shall establish a maximum rate unit 
271.12  for baths provided by an adult day care provider that are not 
271.13  included in the provider's contractual daily or hourly rate. 
271.14  This maximum rate must equal the home health aide extended rate 
271.15  and shall be paid for baths provided to clients served under the 
271.16  elderly and disabled waivers. 
271.17     Sec. 30.  Minnesota Statutes 2000, section 256B.0915, 
271.18  subdivision 5, is amended to read: 
271.19     Subd. 5.  [REASSESSMENTS FOR WAIVER CLIENTS.] A 
271.20  reassessment of a client served under the elderly or disabled 
271.21  waiver must be conducted at least every 12 months and at other 
271.22  times when the case manager determines that there has been 
271.23  significant change in the client's functioning.  This may 
271.24  include instances where the client is discharged from the 
271.25  hospital.  
271.26     Sec. 31.  Minnesota Statutes 2000, section 256B.0917, is 
271.27  amended by adding a subdivision to read: 
271.28     Subd. 13.  [COMMUNITY SERVICE GRANTS.] The commissioner 
271.29  shall award contracts for grants to public and private nonprofit 
271.30  agencies to establish services that strengthen a community's 
271.31  ability to provide a system of home and community-based services 
271.32  for elderly persons.  The commissioner shall use a request for 
271.33  proposal process.  Communities that have a planned closure of a 
271.34  nursing facility approved under section 256B.437 shall be given 
271.35  preference for grants.  The commissioner shall consider grants 
271.36  for: 
272.1      (1) caregiver support and respite care projects under 
272.2   subdivision 6; 
272.3      (2) on-site coordination under section 256.9731; 
272.4      (3) the living-at-home/block nurse grant under subdivisions 
272.5   7 to 10; and 
272.6      (4) services identified as needed for community transition. 
272.7      Sec. 32.  [RESPITE CARE.] 
272.8      The Minnesota board on aging shall present recommendations 
272.9   to the legislature by February 1, 2002, on the provision of 
272.10  in-home and out-of-home respite care services on a sliding scale 
272.11  basis under the federal Older Americans Act. 
272.12     Sec. 33.  [REPEALER.] 
272.13     (a) Minnesota Statutes 2000, sections 256B.0911, 
272.14  subdivisions 2, 2a, 4, 8, and 9; 256B.0913, subdivisions 3, 15a, 
272.15  15b, 15c, and 16; and 256B.0915, subdivisions 3a, 3b, and 3c, 
272.16  are repealed. 
272.17     (b) Minnesota Rules, parts 9505.2390; 9505.2395; 9505.2396; 
272.18  9505.2400; 9505.2405; 9505.2410; 9505.2413; 9505.2415; 
272.19  9505.2420; 9505.2425; 9505.2426; 9505.2430; 9505.2435; 
272.20  9505.2440; 9505.2445; 9505.2450; 9505.2455; 9505.2458; 
272.21  9505.2460; 9505.2465; 9505.2470; 9505.2473; 9505.2475; 
272.22  9505.2480; 9505.2485; 9505.2486; 9505.2490; 9505.2495; 
272.23  9505.2496; and 9505.2500, are repealed. 
272.24                             ARTICLE 5 
272.25           LONG-TERM CARE SYSTEM REFORM AND REIMBURSEMENT 
272.26     Section 1.  Minnesota Statutes 2000, section 144.0721, 
272.27  subdivision 1, is amended to read: 
272.28     Subdivision 1.  [APPROPRIATENESS AND QUALITY.] Until the 
272.29  date of implementation of the revised case mix system based on 
272.30  the minimum data set, the commissioner of health shall assess 
272.31  the appropriateness and quality of care and services furnished 
272.32  to private paying residents in nursing homes and boarding care 
272.33  homes that are certified for participation in the medical 
272.34  assistance program under United States Code, title 42, sections 
272.35  1396-1396p.  These assessments shall be conducted until the date 
272.36  of implementation of the revised case mix system based on the 
273.1   minimum data set, in accordance with section 144.072, with the 
273.2   exception of provisions requiring recommendations for changes in 
273.3   the level of care provided to the private paying residents. 
273.4      Sec. 2.  [144.0724] [RESIDENT REIMBURSEMENT 
273.5   CLASSIFICATION.] 
273.6      Subdivision 1.  [RESIDENT REIMBURSEMENT 
273.7   CLASSIFICATIONS.] The commissioner of health shall establish 
273.8   resident reimbursement classifications based upon the 
273.9   assessments of residents of nursing homes and boarding care 
273.10  homes conducted under this section and according to section 
273.11  256B.438.  The reimbursement classifications established under 
273.12  this section shall be implemented after June 30, 2002, but no 
273.13  later than January 1, 2003. 
273.14     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
273.15  following terms have the meanings given. 
273.16     (a) [ASSESSMENT REFERENCE DATE.] "Assessment reference 
273.17  date" means the last day of the minimum data set observation 
273.18  period.  The date sets the designated endpoint of the common 
273.19  observation period, and all minimum data set items refer back in 
273.20  time from that point. 
273.21     (b) [CASE MIX INDEX.] "Case mix index" means the weighting 
273.22  factors assigned to the RUG-III classifications. 
273.23     (c) [INDEX MAXIMIZATION.] "Index maximization" means 
273.24  classifying a resident who could be assigned to more than one 
273.25  category, to the category with the highest case mix index. 
273.26     (d) [MINIMUM DATA SET.] "Minimum data set" means the 
273.27  assessment instrument specified by the Health Care Financing 
273.28  Administration and designated by the Minnesota department of 
273.29  health. 
273.30     (e) [REPRESENTATIVE.] "Representative" means a person who 
273.31  is the resident's guardian or conservator, the person authorized 
273.32  to pay the nursing home expenses of the resident, a 
273.33  representative of the nursing home ombudsman's office whose 
273.34  assistance has been requested, or any other individual 
273.35  designated by the resident. 
273.36     (f) [RESOURCE UTILIZATION GROUPS OR RUG.] "Resource 
274.1   utilization groups" or "RUG" means the system for grouping a 
274.2   nursing facility's residents according to their clinical and 
274.3   functional status identified in data supplied by the facility's 
274.4   minimum data set. 
274.5      Subd. 3.  [RESIDENT REIMBURSEMENT CLASSIFICATIONS.] (a) 
274.6   Resident reimbursement classifications shall be based on the 
274.7   minimum data set, version 2.0 assessment instrument, or its 
274.8   successor version mandated by the Health Care Financing 
274.9   Administration that nursing facilities are required to complete 
274.10  for all residents.  The commissioner of health shall establish 
274.11  resident classes according to the 34 group, resource utilization 
274.12  groups, version III or RUG-III model.  Resident classes must be 
274.13  established based on the individual items on the minimum data 
274.14  set and must be completed according to the facility manual for 
274.15  case mix classification issued by the Minnesota department of 
274.16  health.  The facility manual for case mix classification shall 
274.17  be drafted by the Minnesota department of health and presented 
274.18  to the chairs of health and human services legislative 
274.19  committees by December 31, 2001. 
274.20     (b) Each resident must be classified based on the 
274.21  information from the minimum data set according to general 
274.22  domains in clauses (1) to (7): 
274.23     (1) extensive services where a resident requires 
274.24  intravenous feeding or medications, suctioning, tracheostomy 
274.25  care, or is on a ventilator or respirator; 
274.26     (2) rehabilitation where a resident requires physical, 
274.27  occupational, or speech therapy; 
274.28     (3) special care where a resident has cerebral palsy; 
274.29  quadriplegia; multiple sclerosis; pressure ulcers; fever with 
274.30  vomiting, weight loss, or dehydration; tube feeding and aphasia; 
274.31  or is receiving radiation therapy; 
274.32     (4) clinically complex status where a resident has burns, 
274.33  coma, septicemia, pneumonia, internal bleeding, chemotherapy, 
274.34  wounds, kidney failure, urinary tract infections, oxygen, or 
274.35  transfusions; 
274.36     (5) impaired cognition where a resident has poor cognitive 
275.1   performance; 
275.2      (6) behavior problems where a resident exhibits wandering, 
275.3   has hallucinations, or is physically or verbally abusive toward 
275.4   others, unless the resident's other condition would place the 
275.5   resident in other categories; and 
275.6      (7) reduced physical functioning where a resident has no 
275.7   special clinical conditions. 
275.8      (c) The commissioner of health shall establish resident 
275.9   classification according to a 34 group model based on the 
275.10  information on the minimum data set and within the general 
275.11  domains listed in paragraph (b), clauses (1) to (7).  Detailed 
275.12  descriptions of each resource utilization group shall be defined 
275.13  in the facility manual for case mix classification issued by the 
275.14  Minnesota department of health.  The 34 groups are described as 
275.15  follows: 
275.16     (1) SE3:  requires four or five extensive services; 
275.17     (2) SE2:  requires two or three extensive services; 
275.18     (3) SE1:  requires one extensive service; 
275.19     (4) RAD:  requires rehabilitation services and is dependent 
275.20  in activity of daily living (ADL) at a count of 17 or 18; 
275.21     (5) RAC:  requires rehabilitation services and ADL count is 
275.22  14 to 16; 
275.23     (6) RAB:  requires rehabilitation services and ADL count is 
275.24  ten to 13; 
275.25     (7) RAA:  requires rehabilitation services and ADL count is 
275.26  four to nine; 
275.27     (8) SSC:  requires special care and ADL count is 17 or 18; 
275.28     (9) SSB:  requires special care and ADL count is 15 or 16; 
275.29     (10) SSA:  requires special care and ADL count is seven to 
275.30  14; 
275.31     (11) CC2:  clinically complex with depression and ADL count 
275.32  is 17 or 18; 
275.33     (12) CC1:  clinically complex with no depression and ADL 
275.34  count is 17 or 18; 
275.35     (13) CB2:  clinically complex with depression and ADL count 
275.36  is 12 to 16; 
276.1      (14) CB1:  clinically complex with no depression and ADL 
276.2   count is 12 to 16; 
276.3      (15) CA2:  clinically complex with depression and ADL count 
276.4   is four to 11; 
276.5      (16) CA1:  clinically complex with no depression and ADL 
276.6   count is four to 11; 
276.7      (17) IB2:  impaired cognition with nursing rehabilitation 
276.8   and ADL count is six to ten; 
276.9      (18) IB1:  impaired cognition with no nursing 
276.10  rehabilitation and ADL count is six to ten; 
276.11     (19) IA2:  impaired cognition with nursing rehabilitation 
276.12  and ADL count is four or five; 
276.13     (20) IA1:  impaired cognition with no nursing 
276.14  rehabilitation and ADL count is four or five; 
276.15     (21) BB2:  behavior problems with nursing rehabilitation 
276.16  and ADL count is six to ten; 
276.17     (22) BB1:  behavior problems with no nursing rehabilitation 
276.18  and ADL count is six to ten; 
276.19     (23) BA2:  behavior problems with nursing rehabilitation 
276.20  and ADL count is four to five; 
276.21     (24) BA1:  behavior problems with no nursing rehabilitation 
276.22  and ADL count is four to five; 
276.23     (25) PE2:  reduced physical functioning with nursing 
276.24  rehabilitation and ADL count is 16 to 18; 
276.25     (26) PE1:  reduced physical functioning with no nursing 
276.26  rehabilitation and ADL count is 16 to 18; 
276.27     (27) PD2:  reduced physical functioning with nursing 
276.28  rehabilitation and ADL count is 11 to 15; 
276.29     (28) PD1:  reduced physical functioning with no nursing 
276.30  rehabilitation and ADL count is 11 to 15; 
276.31     (29) PC2:  reduced physical functioning with nursing 
276.32  rehabilitation and ADL count is nine or ten; 
276.33     (30) PC1:  reduced physical functioning with no nursing 
276.34  rehabilitation and ADL count is nine or ten; 
276.35     (31) PB2:  reduced physical functioning with nursing 
276.36  rehabilitation and ADL count is six to eight; 
277.1      (32) PB1:  reduced physical functioning with no nursing 
277.2   rehabilitation and ADL count is six to eight; 
277.3      (33) PA2:  reduced physical functioning with nursing 
277.4   rehabilitation and ADL count is four or five; and 
277.5      (34) PA1:  reduced physical functioning with no nursing 
277.6   rehabilitation and ADL count is four or five. 
277.7      Subd. 4.  [RESIDENT ASSESSMENT SCHEDULE.] (a) A facility 
277.8   must conduct and electronically submit to the commissioner of 
277.9   health case mix assessments that conform with the assessment 
277.10  schedule defined by the Code of Federal Regulations, title 42, 
277.11  section 483.20, and published by the United States Department of 
277.12  Health and Human Services, Health Care Financing Administration, 
277.13  in the Long Term Care Assessment Instrument User's Manual, 
277.14  version 2.0, October 1995, and subsequent clarifications made in 
277.15  the Long-Term Care Assessment Instrument Questions and Answers, 
277.16  version 2.0, August 1996.  The commissioner of health may 
277.17  substitute successor manuals or question and answer documents 
277.18  published by the United States Department of Health and Human 
277.19  Services, Health Care Financing Administration, to replace or 
277.20  supplement the current version of the manual or document. 
277.21     (b) The assessments used to determine a case mix 
277.22  classification for reimbursement include the following: 
277.23     (1) a new admission assessment must be completed by day 14 
277.24  following admission; 
277.25     (2) an annual assessment must be completed within 366 days 
277.26  of the last comprehensive assessment; 
277.27     (3) a significant change assessment must be completed 
277.28  within 14 days of the identification of a significant change; 
277.29  and 
277.30     (4) the second quarterly assessment following either a new 
277.31  admission assessment, an annual assessment, or a significant 
277.32  change assessment.  Each quarterly assessment must be completed 
277.33  within 92 days of the previous assessment. 
277.34     Subd. 5.  [SHORT STAYS.] (a) A facility must submit to the 
277.35  commissioner of health an initial admission assessment for all 
277.36  residents who stay in the facility less than 14 days. 
278.1      (b) Notwithstanding the admission assessment requirements 
278.2   of paragraph (a), a facility may elect to accept a default rate 
278.3   with a case mix index of 1.0 for all facility residents who stay 
278.4   less than 14 days in lieu of submitting an initial assessment.  
278.5   Facilities may make this election to be effective on the day of 
278.6   implementation of the revised case mix system. 
278.7      (c) After implementation of the revised case mix system, 
278.8   nursing facilities must elect one of the options described in 
278.9   paragraphs (a) and (b) on the annual report to the commissioner 
278.10  of human services filed for each report year ending September 
278.11  30.  The election shall be effective on the following July 1. 
278.12     (d) For residents who are admitted or readmitted and leave 
278.13  the facility on a frequent basis and for whom readmission is 
278.14  expected, the resident may be discharged on an extended leave 
278.15  status.  This status does not require reassessment each time the 
278.16  resident returns to the facility unless a significant change in 
278.17  the resident's status has occurred since the last assessment.  
278.18  The case mix classification for these residents is determined by 
278.19  the facility election made in paragraphs (a) and (b). 
278.20     Subd. 6.  [PENALTIES FOR LATE OR NONSUBMISSION.] A facility 
278.21  that fails to complete or submit an assessment for a RUG-III 
278.22  classification within seven days of the time requirements in 
278.23  subdivisions 4 and 5 is subject to a reduced rate for that 
278.24  resident.  The reduced rate shall be the lowest rate for that 
278.25  facility.  The reduced rate is effective on the day of admission 
278.26  for new admission assessments or on the day that the assessment 
278.27  was due for all other assessments and continues in effect until 
278.28  the first day of the month following the date of submission of 
278.29  the resident's assessment. 
278.30     Subd. 7.  [NOTICE OF RESIDENT REIMBURSEMENT 
278.31  CLASSIFICATION.] (a) A facility must elect between the options 
278.32  in paragraphs (1) and (2) to provide notice to a resident of the 
278.33  resident's case mix classification. 
278.34     (1) The commissioner of health shall provide to a nursing 
278.35  facility a notice for each resident of the reimbursement 
278.36  classification established under subdivision 1.  The notice must 
279.1   inform the resident of the classification that was assigned, the 
279.2   opportunity to review the documentation supporting the 
279.3   classification, the opportunity to obtain clarification from the 
279.4   commissioner, and the opportunity to request a reconsideration 
279.5   of the classification.  The commissioner must send notice of 
279.6   resident classification by first class mail.  A nursing facility 
279.7   is responsible for the distribution of the notice to each 
279.8   resident, to the person responsible for the payment of the 
279.9   resident's nursing home expenses, or to another person 
279.10  designated by the resident.  This notice must be distributed 
279.11  within three working days after the facility's receipt of the 
279.12  notice from the commissioner of health. 
279.13     (2) A facility may choose to provide a classification 
279.14  notice, as prescribed by the commissioner of health, to a 
279.15  resident upon receipt of the confirmation of the case mix 
279.16  classification calculated by a facility or a corrected case mix 
279.17  classification as indicated on the final validation report from 
279.18  the commissioner.  A nursing facility is responsible for the 
279.19  distribution of the notice to each resident, to the person 
279.20  responsible for the payment of the resident's nursing home 
279.21  expenses, or to another person designated by the resident.  This 
279.22  notice must be distributed within three working days after the 
279.23  facility's receipt of the validation report from the 
279.24  commissioner.  If a facility elects this option, the 
279.25  commissioner of health shall provide the facility with a list of 
279.26  residents and their case mix classifications as determined by 
279.27  the commissioner.  A nursing facility may make this election to 
279.28  be effective on the day of implementation of the revised case 
279.29  mix system. 
279.30     (3) After implementation of the revised case mix system, a 
279.31  nursing facility shall elect a notice of resident reimbursement 
279.32  classification procedure as described in paragraph (1) or (2) on 
279.33  the annual report to the commissioner of human services filed 
279.34  for each report year ending September 30.  The election will be 
279.35  effective the following July 1. 
279.36     (b) If a facility submits a correction to an assessment 
280.1   conducted under subdivision 3 that results in a change in case 
280.2   mix classification, the facility shall give written notice to 
280.3   the resident or the resident's representative about the item 
280.4   that was corrected and the reason for the correction.  The 
280.5   notice of corrected assessment may be provided at the same time 
280.6   that the resident or resident's representative is provided the 
280.7   resident's corrected notice of classification. 
280.8      Subd. 8.  [REQUEST FOR RECONSIDERATION OF RESIDENT 
280.9   CLASSIFICATIONS.] (a) The resident, or resident's 
280.10  representative, or the nursing facility or boarding care home 
280.11  may request that the commissioner of health reconsider the 
280.12  assigned reimbursement classification.  The request for 
280.13  reconsideration must be submitted in writing to the commissioner 
280.14  within 30 days of the day the resident or the resident's 
280.15  representative receives the resident classification notice.  The 
280.16  request for reconsideration must include the name of the 
280.17  resident, the name and address of the facility in which the 
280.18  resident resides, the reasons for the reconsideration, the 
280.19  requested classification changes, and documentation supporting 
280.20  the requested classification.  The documentation accompanying 
280.21  the reconsideration request is limited to documentation which 
280.22  establishes that the needs of the resident at the time of the 
280.23  assessment justify a classification which is different than the 
280.24  classification established by the commissioner of health. 
280.25     (b) Upon request, the nursing facility must give the 
280.26  resident or the resident's representative a copy of the 
280.27  assessment form and the other documentation that was given to 
280.28  the commissioner of health to support the assessment findings.  
280.29  The nursing facility shall also provide access to and a copy of 
280.30  other information from the resident's record that has been 
280.31  requested by or on behalf of the resident to support a 
280.32  resident's reconsideration request.  A copy of any requested 
280.33  material must be provided within three working days of receipt 
280.34  of a written request for the information.  If a facility fails 
280.35  to provide the material within this time, it is subject to the 
280.36  issuance of a correction order and penalty assessment under 
281.1   sections 144.653 and 144A.10.  Notwithstanding those sections, 
281.2   any correction order issued under this subdivision must require 
281.3   that the nursing facility immediately comply with the request 
281.4   for information and that as of the date of the issuance of the 
281.5   correction order, the facility shall forfeit to the state a $100 
281.6   fine for the first day of noncompliance, and an increase in the 
281.7   $100 fine by $50 increments for each day the noncompliance 
281.8   continues. 
281.9      (c) In addition to the information required under 
281.10  paragraphs (a) and (b), a reconsideration request from a nursing 
281.11  facility must contain the following information:  (i) the date 
281.12  the reimbursement classification notices were received by the 
281.13  facility; (ii) the date the classification notices were 
281.14  distributed to the resident or the resident's representative; 
281.15  and (iii) a copy of a notice sent to the resident or to the 
281.16  resident's representative.  This notice must inform the resident 
281.17  or the resident's representative that a reconsideration of the 
281.18  resident's classification is being requested, the reason for the 
281.19  request, that the resident's rate will change if the request is 
281.20  approved by the commissioner, the extent of the change, that 
281.21  copies of the facility's request and supporting documentation 
281.22  are available for review, and that the resident also has the 
281.23  right to request a reconsideration.  If the facility fails to 
281.24  provide the required information with the reconsideration 
281.25  request, the request must be denied, and the facility may not 
281.26  make further reconsideration requests on that specific 
281.27  reimbursement classification. 
281.28     (d) Reconsideration by the commissioner must be made by 
281.29  individuals not involved in reviewing the assessment, audit, or 
281.30  reconsideration that established the disputed classification.  
281.31  The reconsideration must be based upon the initial assessment 
281.32  and upon the information provided to the commissioner under 
281.33  paragraphs (a) and (b).  If necessary for evaluating the 
281.34  reconsideration request, the commissioner may conduct on-site 
281.35  reviews.  Within 15 working days of receiving the request for 
281.36  reconsideration, the commissioner shall affirm or modify the 
282.1   original resident classification.  The original classification 
282.2   must be modified if the commissioner determines that the 
282.3   assessment resulting in the classification did not accurately 
282.4   reflect the needs or assessment characteristics of the resident 
282.5   at the time of the assessment.  The resident and the nursing 
282.6   facility or boarding care home shall be notified within five 
282.7   working days after the decision is made.  A decision by the 
282.8   commissioner under this subdivision is the final administrative 
282.9   decision of the agency for the party requesting reconsideration. 
282.10     (e) The resident classification established by the 
282.11  commissioner shall be the classification that applies to the 
282.12  resident while the request for reconsideration is pending. 
282.13     (f) The commissioner may request additional documentation 
282.14  regarding a reconsideration necessary to make an accurate 
282.15  reconsideration determination. 
282.16     Subd. 9.  [AUDIT AUTHORITY.] (a) The commissioner shall 
282.17  audit the accuracy of resident assessments performed under 
282.18  section 256B.438 through desk audits, on-site review of 
282.19  residents and their records, and interviews with staff and 
282.20  families.  The commissioner shall reclassify a resident if the 
282.21  commissioner determines that the resident was incorrectly 
282.22  classified. 
282.23     (b) The commissioner is authorized to conduct on-site 
282.24  audits on an unannounced basis. 
282.25     (c) A facility must grant the commissioner access to 
282.26  examine the medical records relating to the resident assessments 
282.27  selected for audit under this subdivision.  The commissioner may 
282.28  also observe and speak to facility staff and residents. 
282.29     (d) The commissioner shall consider documentation under the 
282.30  time frames for coding items on the minimum data set as set out 
282.31  in the Resident Assessment Instrument Manual published by the 
282.32  Health Care Financing Administration. 
282.33     (e) The commissioner shall develop an audit selection 
282.34  procedure that includes the following factors: 
282.35     (1) The commissioner may target facilities that demonstrate 
282.36  an atypical pattern of scoring minimum data set items, 
283.1   nonsubmission of assessments, late submission of assessments, or 
283.2   a previous history of audit changes of greater than 35 percent.  
283.3   The commissioner shall select at least 20 percent of the most 
283.4   current assessments submitted to the state for audit.  Audits of 
283.5   assessments selected in the targeted facilities must focus on 
283.6   the factors leading to the audit.  If the number of targeted 
283.7   assessments selected does not meet the threshold of 20 percent 
283.8   of the facility residents, then a stratified sample of the 
283.9   remainder of assessments shall be drawn to meet the quota.  If 
283.10  the total change exceeds 35 percent, the commissioner may 
283.11  conduct an expanded audit up to 100 percent of the remaining 
283.12  current assessments. 
283.13     (2) Facilities that are not a part of the targeted group 
283.14  shall be placed in a general pool from which facilities will be 
283.15  selected on a random basis for audit.  Every facility shall be 
283.16  audited annually.  If a facility has two successive audits in 
283.17  which the percentage of change is five percent or less and the 
283.18  facility has not been the subject of a targeted audit in the 
283.19  past 36 months, the facility may be audited biannually.  A 
283.20  stratified sample of 15 percent of the most current assessments 
283.21  shall be selected for audit.  If more than 20 percent of the 
283.22  RUGS-III classifications after the audit are changed, the audit 
283.23  shall be expanded to a second 15 percent sample.  If the total 
283.24  change between the first and second samples exceed 35 percent, 
283.25  the commissioner may expand the audit to all of the remaining 
283.26  assessments. 
283.27     (3) If a facility qualifies for an expanded audit, the 
283.28  commissioner may audit the facility again within six months.  If 
283.29  a facility has two expanded audits within a 24-month period, 
283.30  that facility will be audited at least every six months for the 
283.31  next 18 months. 
283.32     (4) The commissioner may conduct special audits if the 
283.33  commissioner determines that circumstances exist that could 
283.34  alter or affect the validity of case mix classifications of 
283.35  residents.  These circumstances include, but are not limited to, 
283.36  the following:  
284.1      (i) frequent changes in the administration or management of 
284.2   the facility; 
284.3      (ii) an unusually high percentage of residents in a 
284.4   specific case mix classification; 
284.5      (iii) a high frequency in the number of reconsideration 
284.6   requests received from a facility; 
284.7      (iv) frequent adjustments of case mix classifications as 
284.8   the result of reconsiderations or audits; 
284.9      (v) a criminal indictment alleging provider fraud; or 
284.10     (vi) other similar factors that relate to a facility's 
284.11  ability to conduct accurate assessments. 
284.12     (f) Within 15 working days of completing the audit process, 
284.13  the commissioner shall mail the written results of the audit to 
284.14  the facility, along with a written notice for each resident 
284.15  affected to be forwarded by the facility.  The notice must 
284.16  contain the resident's classification and a statement informing 
284.17  the resident, the resident's authorized representative, and the 
284.18  facility of their right to review the commissioner's documents 
284.19  supporting the classification and to request a reconsideration 
284.20  of the classification.  This notice must also include the 
284.21  address and telephone number of the area nursing home ombudsman. 
284.22     Subd. 10.  [TRANSITION.] After implementation of this 
284.23  section, reconsiderations requested for classifications made 
284.24  under section 144.0722, subdivision 1, shall be determined under 
284.25  section 144.0722, subdivision 3. 
284.26     Sec. 3.  Minnesota Statutes 2000, section 144A.071, 
284.27  subdivision 1, is amended to read: 
284.28     Subdivision 1.  [FINDINGS.] The legislature declares that a 
284.29  moratorium on the licensure and medical assistance certification 
284.30  of new nursing home beds and construction projects that 
284.31  exceed $750,000 $1,000,000 is necessary to control nursing home 
284.32  expenditure growth and enable the state to meet the needs of its 
284.33  elderly by providing high quality services in the most 
284.34  appropriate manner along a continuum of care.  
284.35     Sec. 4.  Minnesota Statutes 2000, section 144A.071, 
284.36  subdivision 1a, is amended to read: 
285.1      Subd. 1a.  [DEFINITIONS.] For purposes of sections 144A.071 
285.2   to 144A.073, the following terms have the meanings given them: 
285.3      (a) "attached fixtures" has the meaning given in Minnesota 
285.4   Rules, part 9549.0020, subpart 6. 
285.5      (b) "buildings" has the meaning given in Minnesota Rules, 
285.6   part 9549.0020, subpart 7. 
285.7      (c) "capital assets" has the meaning given in section 
285.8   256B.421, subdivision 16. 
285.9      (d) "commenced construction" means that all of the 
285.10  following conditions were met:  the final working drawings and 
285.11  specifications were approved by the commissioner of health; the 
285.12  construction contracts were let; a timely construction schedule 
285.13  was developed, stipulating dates for beginning, achieving 
285.14  various stages, and completing construction; and all zoning and 
285.15  building permits were applied for. 
285.16     (e) "completion date" means the date on which a certificate 
285.17  of occupancy is issued for a construction project, or if a 
285.18  certificate of occupancy is not required, the date on which the 
285.19  construction project is available for facility use. 
285.20     (f) "construction" means any erection, building, 
285.21  alteration, reconstruction, modernization, or improvement 
285.22  necessary to comply with the nursing home licensure rules. 
285.23     (g) "construction project" means: 
285.24     (1) a capital asset addition to, or replacement of a 
285.25  nursing home or certified boarding care home that results in new 
285.26  space or the remodeling of or renovations to existing facility 
285.27  space; 
285.28     (2) the remodeling or renovation of existing facility space 
285.29  the use of which is modified as a result of the project 
285.30  described in clause (1).  This existing space and the project 
285.31  described in clause (1) must be used for the functions as 
285.32  designated on the construction plans on completion of the 
285.33  project described in clause (1) for a period of not less than 24 
285.34  months; or 
285.35     (3) capital asset additions or replacements that are 
285.36  completed within 12 months before or after the completion date 
286.1   of the project described in clause (1). 
286.2      (h) "new licensed" or "new certified beds" means: 
286.3      (1) newly constructed beds in a facility or the 
286.4   construction of a new facility that would increase the total 
286.5   number of licensed nursing home beds or certified boarding care 
286.6   or nursing home beds in the state; or 
286.7      (2) newly licensed nursing home beds or newly certified 
286.8   boarding care or nursing home beds that result from remodeling 
286.9   of the facility that involves relocation of beds but does not 
286.10  result in an increase in the total number of beds, except when 
286.11  the project involves the upgrade of boarding care beds to 
286.12  nursing home beds, as defined in section 144A.073, subdivision 
286.13  1.  "Remodeling" includes any of the type of conversion, 
286.14  renovation, replacement, or upgrading projects as defined in 
286.15  section 144A.073, subdivision 1. 
286.16     (i) "project construction costs" means the cost of the 
286.17  facility capital asset additions, replacements, renovations, or 
286.18  remodeling projects, construction site preparation costs, and 
286.19  related soft costs.  Project construction costs also include the 
286.20  cost of any remodeling or renovation of existing facility space 
286.21  which is modified as a result of the construction 
286.22  project.  Project construction costs also includes the cost of 
286.23  new technology implemented as part of the construction project. 
286.24     (j) "technology" means information systems or devices that 
286.25  make documentation, charting, and staff time more efficient or 
286.26  encourage and allow for care through alternative settings 
286.27  including, but not limited to, touch screens, monitors, 
286.28  hand-helds, swipe cards, motion detectors, pagers, telemedicine, 
286.29  medication dispensers, and equipment to monitor vital signs and 
286.30  self-injections, and to observe skin and other conditions. 
286.31     Sec. 5.  Minnesota Statutes 2000, section 144A.071, 
286.32  subdivision 2, is amended to read: 
286.33     Subd. 2.  [MORATORIUM.] The commissioner of health, in 
286.34  coordination with the commissioner of human services, shall deny 
286.35  each request for new licensed or certified nursing home or 
286.36  certified boarding care beds except as provided in subdivision 3 
287.1   or 4a, or section 144A.073.  "Certified bed" means a nursing 
287.2   home bed or a boarding care bed certified by the commissioner of 
287.3   health for the purposes of the medical assistance program, under 
287.4   United States Code, title 42, sections 1396 et seq.  
287.5      The commissioner of human services, in coordination with 
287.6   the commissioner of health, shall deny any request to issue a 
287.7   license under section 252.28 and chapter 245A to a nursing home 
287.8   or boarding care home, if that license would result in an 
287.9   increase in the medical assistance reimbursement amount.  
287.10     In addition, the commissioner of health must not approve 
287.11  any construction project whose cost exceeds $750,000 $1,000,000, 
287.12  unless: 
287.13     (a) any construction costs exceeding $750,000 $1,000,000 
287.14  are not added to the facility's appraised value and are not 
287.15  included in the facility's payment rate for reimbursement under 
287.16  the medical assistance program; or 
287.17     (b) the project: 
287.18     (1) has been approved through the process described in 
287.19  section 144A.073; 
287.20     (2) meets an exception in subdivision 3 or 4a; 
287.21     (3) is necessary to correct violations of state or federal 
287.22  law issued by the commissioner of health; 
287.23     (4) is necessary to repair or replace a portion of the 
287.24  facility that was damaged by fire, lightning, groundshifts, or 
287.25  other such hazards, including environmental hazards, provided 
287.26  that the provisions of subdivision 4a, clause (a), are met; 
287.27     (5) as of May 1, 1992, the facility has submitted to the 
287.28  commissioner of health written documentation evidencing that the 
287.29  facility meets the "commenced construction" definition as 
287.30  specified in subdivision 1a, clause (d), or that substantial 
287.31  steps have been taken prior to April 1, 1992, relating to the 
287.32  construction project.  "Substantial steps" require that the 
287.33  facility has made arrangements with outside parties relating to 
287.34  the construction project and include the hiring of an architect 
287.35  or construction firm, submission of preliminary plans to the 
287.36  department of health or documentation from a financial 
288.1   institution that financing arrangements for the construction 
288.2   project have been made; or 
288.3      (6) is being proposed by a licensed nursing facility that 
288.4   is not certified to participate in the medical assistance 
288.5   program and will not result in new licensed or certified beds. 
288.6      Prior to the final plan approval of any construction 
288.7   project, the commissioner of health shall be provided with an 
288.8   itemized cost estimate for the project construction costs.  If a 
288.9   construction project is anticipated to be completed in phases, 
288.10  the total estimated cost of all phases of the project shall be 
288.11  submitted to the commissioner and shall be considered as one 
288.12  construction project.  Once the construction project is 
288.13  completed and prior to the final clearance by the commissioner, 
288.14  the total project construction costs for the construction 
288.15  project shall be submitted to the commissioner.  If the final 
288.16  project construction cost exceeds the dollar threshold in this 
288.17  subdivision, the commissioner of human services shall not 
288.18  recognize any of the project construction costs or the related 
288.19  financing costs in excess of this threshold in establishing the 
288.20  facility's property-related payment rate. 
288.21     The dollar thresholds for construction projects are as 
288.22  follows:  for construction projects other than those authorized 
288.23  in clauses (1) to (6), the dollar threshold 
288.24  is $750,000 $1,000,000.  For projects authorized after July 1, 
288.25  1993, under clause (1), the dollar threshold is the cost 
288.26  estimate submitted with a proposal for an exception under 
288.27  section 144A.073, plus inflation as calculated according to 
288.28  section 256B.431, subdivision 3f, paragraph (a).  For projects 
288.29  authorized under clauses (2) to (4), the dollar threshold is the 
288.30  itemized estimate project construction costs submitted to the 
288.31  commissioner of health at the time of final plan approval, plus 
288.32  inflation as calculated according to section 256B.431, 
288.33  subdivision 3f, paragraph (a). 
288.34     The commissioner of health shall adopt rules to implement 
288.35  this section or to amend the emergency rules for granting 
288.36  exceptions to the moratorium on nursing homes under section 
289.1   144A.073.  
289.2      Sec. 6.  Minnesota Statutes 2000, section 144A.071, 
289.3   subdivision 4a, is amended to read: 
289.4      Subd. 4a.  [EXCEPTIONS FOR REPLACEMENT BEDS.] It is in the 
289.5   best interest of the state to ensure that nursing homes and 
289.6   boarding care homes continue to meet the physical plant 
289.7   licensing and certification requirements by permitting certain 
289.8   construction projects.  Facilities should be maintained in 
289.9   condition to satisfy the physical and emotional needs of 
289.10  residents while allowing the state to maintain control over 
289.11  nursing home expenditure growth. 
289.12     The commissioner of health in coordination with the 
289.13  commissioner of human services, may approve the renovation, 
289.14  replacement, upgrading, or relocation of a nursing home or 
289.15  boarding care home, under the following conditions: 
289.16     (a) to license or certify beds in a new facility 
289.17  constructed to replace a facility or to make repairs in an 
289.18  existing facility that was destroyed or damaged after June 30, 
289.19  1987, by fire, lightning, or other hazard provided:  
289.20     (i) destruction was not caused by the intentional act of or 
289.21  at the direction of a controlling person of the facility; 
289.22     (ii) at the time the facility was destroyed or damaged the 
289.23  controlling persons of the facility maintained insurance 
289.24  coverage for the type of hazard that occurred in an amount that 
289.25  a reasonable person would conclude was adequate; 
289.26     (iii) the net proceeds from an insurance settlement for the 
289.27  damages caused by the hazard are applied to the cost of the new 
289.28  facility or repairs; 
289.29     (iv) the new facility is constructed on the same site as 
289.30  the destroyed facility or on another site subject to the 
289.31  restrictions in section 144A.073, subdivision 5; 
289.32     (v) the number of licensed and certified beds in the new 
289.33  facility does not exceed the number of licensed and certified 
289.34  beds in the destroyed facility; and 
289.35     (vi) the commissioner determines that the replacement beds 
289.36  are needed to prevent an inadequate supply of beds. 
290.1   Project construction costs incurred for repairs authorized under 
290.2   this clause shall not be considered in the dollar threshold 
290.3   amount defined in subdivision 2; 
290.4      (b) to license or certify beds that are moved from one 
290.5   location to another within a nursing home facility, provided the 
290.6   total costs of remodeling performed in conjunction with the 
290.7   relocation of beds does not exceed $750,000 $1,000,000; 
290.8      (c) to license or certify beds in a project recommended for 
290.9   approval under section 144A.073; 
290.10     (d) to license or certify beds that are moved from an 
290.11  existing state nursing home to a different state facility, 
290.12  provided there is no net increase in the number of state nursing 
290.13  home beds; 
290.14     (e) to certify and license as nursing home beds boarding 
290.15  care beds in a certified boarding care facility if the beds meet 
290.16  the standards for nursing home licensure, or in a facility that 
290.17  was granted an exception to the moratorium under section 
290.18  144A.073, and if the cost of any remodeling of the facility does 
290.19  not exceed $750,000 $1,000,000.  If boarding care beds are 
290.20  licensed as nursing home beds, the number of boarding care beds 
290.21  in the facility must not increase beyond the number remaining at 
290.22  the time of the upgrade in licensure.  The provisions contained 
290.23  in section 144A.073 regarding the upgrading of the facilities do 
290.24  not apply to facilities that satisfy these requirements; 
290.25     (f) to license and certify up to 40 beds transferred from 
290.26  an existing facility owned and operated by the Amherst H. Wilder 
290.27  Foundation in the city of St. Paul to a new unit at the same 
290.28  location as the existing facility that will serve persons with 
290.29  Alzheimer's disease and other related disorders.  The transfer 
290.30  of beds may occur gradually or in stages, provided the total 
290.31  number of beds transferred does not exceed 40.  At the time of 
290.32  licensure and certification of a bed or beds in the new unit, 
290.33  the commissioner of health shall delicense and decertify the 
290.34  same number of beds in the existing facility.  As a condition of 
290.35  receiving a license or certification under this clause, the 
290.36  facility must make a written commitment to the commissioner of 
291.1   human services that it will not seek to receive an increase in 
291.2   its property-related payment rate as a result of the transfers 
291.3   allowed under this paragraph; 
291.4      (g) to license and certify nursing home beds to replace 
291.5   currently licensed and certified boarding care beds which may be 
291.6   located either in a remodeled or renovated boarding care or 
291.7   nursing home facility or in a remodeled, renovated, newly 
291.8   constructed, or replacement nursing home facility within the 
291.9   identifiable complex of health care facilities in which the 
291.10  currently licensed boarding care beds are presently located, 
291.11  provided that the number of boarding care beds in the facility 
291.12  or complex are decreased by the number to be licensed as nursing 
291.13  home beds and further provided that, if the total costs of new 
291.14  construction, replacement, remodeling, or renovation exceed ten 
291.15  percent of the appraised value of the facility or $200,000, 
291.16  whichever is less, the facility makes a written commitment to 
291.17  the commissioner of human services that it will not seek to 
291.18  receive an increase in its property-related payment rate by 
291.19  reason of the new construction, replacement, remodeling, or 
291.20  renovation.  The provisions contained in section 144A.073 
291.21  regarding the upgrading of facilities do not apply to facilities 
291.22  that satisfy these requirements; 
291.23     (h) to license as a nursing home and certify as a nursing 
291.24  facility a facility that is licensed as a boarding care facility 
291.25  but not certified under the medical assistance program, but only 
291.26  if the commissioner of human services certifies to the 
291.27  commissioner of health that licensing the facility as a nursing 
291.28  home and certifying the facility as a nursing facility will 
291.29  result in a net annual savings to the state general fund of 
291.30  $200,000 or more; 
291.31     (i) to certify, after September 30, 1992, and prior to July 
291.32  1, 1993, existing nursing home beds in a facility that was 
291.33  licensed and in operation prior to January 1, 1992; 
291.34     (j) to license and certify new nursing home beds to replace 
291.35  beds in a facility acquired by the Minneapolis community 
291.36  development agency as part of redevelopment activities in a city 
292.1   of the first class, provided the new facility is located within 
292.2   three miles of the site of the old facility.  Operating and 
292.3   property costs for the new facility must be determined and 
292.4   allowed under section 256B.431 or 256B.434; 
292.5      (k) to license and certify up to 20 new nursing home beds 
292.6   in a community-operated hospital and attached convalescent and 
292.7   nursing care facility with 40 beds on April 21, 1991, that 
292.8   suspended operation of the hospital in April 1986.  The 
292.9   commissioner of human services shall provide the facility with 
292.10  the same per diem property-related payment rate for each 
292.11  additional licensed and certified bed as it will receive for its 
292.12  existing 40 beds; 
292.13     (l) to license or certify beds in renovation, replacement, 
292.14  or upgrading projects as defined in section 144A.073, 
292.15  subdivision 1, so long as the cumulative total costs of the 
292.16  facility's remodeling projects do not 
292.17  exceed $750,000 $1,000,000; 
292.18     (m) to license and certify beds that are moved from one 
292.19  location to another for the purposes of converting up to five 
292.20  four-bed wards to single or double occupancy rooms in a nursing 
292.21  home that, as of January 1, 1993, was county-owned and had a 
292.22  licensed capacity of 115 beds; 
292.23     (n) to allow a facility that on April 16, 1993, was a 
292.24  106-bed licensed and certified nursing facility located in 
292.25  Minneapolis to layaway all of its licensed and certified nursing 
292.26  home beds.  These beds may be relicensed and recertified in a 
292.27  newly-constructed teaching nursing home facility affiliated with 
292.28  a teaching hospital upon approval by the legislature.  The 
292.29  proposal must be developed in consultation with the interagency 
292.30  committee on long-term care planning.  The beds on layaway 
292.31  status shall have the same status as voluntarily delicensed and 
292.32  decertified beds, except that beds on layaway status remain 
292.33  subject to the surcharge in section 256.9657.  This layaway 
292.34  provision expires July 1, 1998; 
292.35     (o) to allow a project which will be completed in 
292.36  conjunction with an approved moratorium exception project for a 
293.1   nursing home in southern Cass county and which is directly 
293.2   related to that portion of the facility that must be repaired, 
293.3   renovated, or replaced, to correct an emergency plumbing problem 
293.4   for which a state correction order has been issued and which 
293.5   must be corrected by August 31, 1993; 
293.6      (p) to allow a facility that on April 16, 1993, was a 
293.7   368-bed licensed and certified nursing facility located in 
293.8   Minneapolis to layaway, upon 30 days prior written notice to the 
293.9   commissioner, up to 30 of the facility's licensed and certified 
293.10  beds by converting three-bed wards to single or double 
293.11  occupancy.  Beds on layaway status shall have the same status as 
293.12  voluntarily delicensed and decertified beds except that beds on 
293.13  layaway status remain subject to the surcharge in section 
293.14  256.9657, remain subject to the license application and renewal 
293.15  fees under section 144A.07 and shall be subject to a $100 per 
293.16  bed reactivation fee.  In addition, at any time within three 
293.17  years of the effective date of the layaway, the beds on layaway 
293.18  status may be: 
293.19     (1) relicensed and recertified upon relocation and 
293.20  reactivation of some or all of the beds to an existing licensed 
293.21  and certified facility or facilities located in Pine River, 
293.22  Brainerd, or International Falls; provided that the total 
293.23  project construction costs related to the relocation of beds 
293.24  from layaway status for any facility receiving relocated beds 
293.25  may not exceed the dollar threshold provided in subdivision 2 
293.26  unless the construction project has been approved through the 
293.27  moratorium exception process under section 144A.073; 
293.28     (2) relicensed and recertified, upon reactivation of some 
293.29  or all of the beds within the facility which placed the beds in 
293.30  layaway status, if the commissioner has determined a need for 
293.31  the reactivation of the beds on layaway status. 
293.32     The property-related payment rate of a facility placing 
293.33  beds on layaway status must be adjusted by the incremental 
293.34  change in its rental per diem after recalculating the rental per 
293.35  diem as provided in section 256B.431, subdivision 3a, paragraph 
293.36  (c).  The property-related payment rate for a facility 
294.1   relicensing and recertifying beds from layaway status must be 
294.2   adjusted by the incremental change in its rental per diem after 
294.3   recalculating its rental per diem using the number of beds after 
294.4   the relicensing to establish the facility's capacity day 
294.5   divisor, which shall be effective the first day of the month 
294.6   following the month in which the relicensing and recertification 
294.7   became effective.  Any beds remaining on layaway status more 
294.8   than three years after the date the layaway status became 
294.9   effective must be removed from layaway status and immediately 
294.10  delicensed and decertified; 
294.11     (q) to license and certify beds in a renovation and 
294.12  remodeling project to convert 12 four-bed wards into 24 two-bed 
294.13  rooms, expand space, and add improvements in a nursing home 
294.14  that, as of January 1, 1994, met the following conditions:  the 
294.15  nursing home was located in Ramsey county; had a licensed 
294.16  capacity of 154 beds; and had been ranked among the top 15 
294.17  applicants by the 1993 moratorium exceptions advisory review 
294.18  panel.  The total project construction cost estimate for this 
294.19  project must not exceed the cost estimate submitted in 
294.20  connection with the 1993 moratorium exception process; 
294.21     (r) to license and certify up to 117 beds that are 
294.22  relocated from a licensed and certified 138-bed nursing facility 
294.23  located in St. Paul to a hospital with 130 licensed hospital 
294.24  beds located in South St. Paul, provided that the nursing 
294.25  facility and hospital are owned by the same or a related 
294.26  organization and that prior to the date the relocation is 
294.27  completed the hospital ceases operation of its inpatient 
294.28  hospital services at that hospital.  After relocation, the 
294.29  nursing facility's status under section 256B.431, subdivision 
294.30  2j, shall be the same as it was prior to relocation.  The 
294.31  nursing facility's property-related payment rate resulting from 
294.32  the project authorized in this paragraph shall become effective 
294.33  no earlier than April 1, 1996.  For purposes of calculating the 
294.34  incremental change in the facility's rental per diem resulting 
294.35  from this project, the allowable appraised value of the nursing 
294.36  facility portion of the existing health care facility physical 
295.1   plant prior to the renovation and relocation may not exceed 
295.2   $2,490,000; 
295.3      (s) to license and certify two beds in a facility to 
295.4   replace beds that were voluntarily delicensed and decertified on 
295.5   June 28, 1991; 
295.6      (t) to allow 16 licensed and certified beds located on July 
295.7   1, 1994, in a 142-bed nursing home and 21-bed boarding care home 
295.8   facility in Minneapolis, notwithstanding the licensure and 
295.9   certification after July 1, 1995, of the Minneapolis facility as 
295.10  a 147-bed nursing home facility after completion of a 
295.11  construction project approved in 1993 under section 144A.073, to 
295.12  be laid away upon 30 days' prior written notice to the 
295.13  commissioner.  Beds on layaway status shall have the same status 
295.14  as voluntarily delicensed or decertified beds except that they 
295.15  shall remain subject to the surcharge in section 256.9657.  The 
295.16  16 beds on layaway status may be relicensed as nursing home beds 
295.17  and recertified at any time within five years of the effective 
295.18  date of the layaway upon relocation of some or all of the beds 
295.19  to a licensed and certified facility located in Watertown, 
295.20  provided that the total project construction costs related to 
295.21  the relocation of beds from layaway status for the Watertown 
295.22  facility may not exceed the dollar threshold provided in 
295.23  subdivision 2 unless the construction project has been approved 
295.24  through the moratorium exception process under section 144A.073. 
295.25     The property-related payment rate of the facility placing 
295.26  beds on layaway status must be adjusted by the incremental 
295.27  change in its rental per diem after recalculating the rental per 
295.28  diem as provided in section 256B.431, subdivision 3a, paragraph 
295.29  (c).  The property-related payment rate for the facility 
295.30  relicensing and recertifying beds from layaway status must be 
295.31  adjusted by the incremental change in its rental per diem after 
295.32  recalculating its rental per diem using the number of beds after 
295.33  the relicensing to establish the facility's capacity day 
295.34  divisor, which shall be effective the first day of the month 
295.35  following the month in which the relicensing and recertification 
295.36  became effective.  Any beds remaining on layaway status more 
296.1   than five years after the date the layaway status became 
296.2   effective must be removed from layaway status and immediately 
296.3   delicensed and decertified; 
296.4      (u) to license and certify beds that are moved within an 
296.5   existing area of a facility or to a newly constructed addition 
296.6   which is built for the purpose of eliminating three- and 
296.7   four-bed rooms and adding space for dining, lounge areas, 
296.8   bathing rooms, and ancillary service areas in a nursing home 
296.9   that, as of January 1, 1995, was located in Fridley and had a 
296.10  licensed capacity of 129 beds; 
296.11     (v) to relocate 36 beds in Crow Wing county and four beds 
296.12  from Hennepin county to a 160-bed facility in Crow Wing county, 
296.13  provided all the affected beds are under common ownership; 
296.14     (w) to license and certify a total replacement project of 
296.15  up to 49 beds located in Norman county that are relocated from a 
296.16  nursing home destroyed by flood and whose residents were 
296.17  relocated to other nursing homes.  The operating cost payment 
296.18  rates for the new nursing facility shall be determined based on 
296.19  the interim and settle-up payment provisions of Minnesota Rules, 
296.20  part 9549.0057, and the reimbursement provisions of section 
296.21  256B.431, except that subdivision 26, paragraphs (a) and (b), 
296.22  shall not apply until the second rate year after the settle-up 
296.23  cost report is filed.  Property-related reimbursement rates 
296.24  shall be determined under section 256B.431, taking into account 
296.25  any federal or state flood-related loans or grants provided to 
296.26  the facility; 
296.27     (x) to license and certify a total replacement project of 
296.28  up to 129 beds located in Polk county that are relocated from a 
296.29  nursing home destroyed by flood and whose residents were 
296.30  relocated to other nursing homes.  The operating cost payment 
296.31  rates for the new nursing facility shall be determined based on 
296.32  the interim and settle-up payment provisions of Minnesota Rules, 
296.33  part 9549.0057, and the reimbursement provisions of section 
296.34  256B.431, except that subdivision 26, paragraphs (a) and (b), 
296.35  shall not apply until the second rate year after the settle-up 
296.36  cost report is filed.  Property-related reimbursement rates 
297.1   shall be determined under section 256B.431, taking into account 
297.2   any federal or state flood-related loans or grants provided to 
297.3   the facility; 
297.4      (y) to license and certify beds in a renovation and 
297.5   remodeling project to convert 13 three-bed wards into 13 two-bed 
297.6   rooms and 13 single-bed rooms, expand space, and add 
297.7   improvements in a nursing home that, as of January 1, 1994, met 
297.8   the following conditions:  the nursing home was located in 
297.9   Ramsey county, was not owned by a hospital corporation, had a 
297.10  licensed capacity of 64 beds, and had been ranked among the top 
297.11  15 applicants by the 1993 moratorium exceptions advisory review 
297.12  panel.  The total project construction cost estimate for this 
297.13  project must not exceed the cost estimate submitted in 
297.14  connection with the 1993 moratorium exception process; 
297.15     (z) to license and certify up to 150 nursing home beds to 
297.16  replace an existing 285 bed nursing facility located in St. 
297.17  Paul.  The replacement project shall include both the renovation 
297.18  of existing buildings and the construction of new facilities at 
297.19  the existing site.  The reduction in the licensed capacity of 
297.20  the existing facility shall occur during the construction 
297.21  project as beds are taken out of service due to the construction 
297.22  process.  Prior to the start of the construction process, the 
297.23  facility shall provide written information to the commissioner 
297.24  of health describing the process for bed reduction, plans for 
297.25  the relocation of residents, and the estimated construction 
297.26  schedule.  The relocation of residents shall be in accordance 
297.27  with the provisions of law and rule; 
297.28     (aa) to allow the commissioner of human services to license 
297.29  an additional 36 beds to provide residential services for the 
297.30  physically handicapped under Minnesota Rules, parts 9570.2000 to 
297.31  9570.3400, in a 198-bed nursing home located in Red Wing, 
297.32  provided that the total number of licensed and certified beds at 
297.33  the facility does not increase; 
297.34     (bb) to license and certify a new facility in St. Louis 
297.35  county with 44 beds constructed to replace an existing facility 
297.36  in St. Louis county with 31 beds, which has resident rooms on 
298.1   two separate floors and an antiquated elevator that creates 
298.2   safety concerns for residents and prevents nonambulatory 
298.3   residents from residing on the second floor.  The project shall 
298.4   include the elimination of three- and four-bed rooms; 
298.5      (cc) to license and certify four beds in a 16-bed certified 
298.6   boarding care home in Minneapolis to replace beds that were 
298.7   voluntarily delicensed and decertified on or before March 31, 
298.8   1992.  The licensure and certification is conditional upon the 
298.9   facility periodically assessing and adjusting its resident mix 
298.10  and other factors which may contribute to a potential 
298.11  institution for mental disease declaration.  The commissioner of 
298.12  human services shall retain the authority to audit the facility 
298.13  at any time and shall require the facility to comply with any 
298.14  requirements necessary to prevent an institution for mental 
298.15  disease declaration, including delicensure and decertification 
298.16  of beds, if necessary; or 
298.17     (dd) to license and certify 72 beds in an existing facility 
298.18  in Mille Lacs county with 80 beds as part of a renovation 
298.19  project.  The renovation must include construction of an 
298.20  addition to accommodate ten residents with beginning and 
298.21  midstage dementia in a self-contained living unit; creation of 
298.22  three resident households where dining, activities, and support 
298.23  spaces are located near resident living quarters; designation of 
298.24  four beds for rehabilitation in a self-contained area; 
298.25  designation of 30 private rooms; and other improvements; 
298.26     (ee) to license and certify beds in a facility that has 
298.27  undergone replacement or remodeling as part of a planned closure 
298.28  under section 256B.437; 
298.29     (ff) to transfer up to 98 beds of a 129 licensed bed 
298.30  facility located in Anoka county that, as of March 25, 2001, is 
298.31  in the active process of closing, to a 122 licensed bed 
298.32  nonprofit nursing facility located in the city of Columbia 
298.33  Heights, or its affiliate.  The transfer is effective when the 
298.34  receiving facility notifies the commissioner in writing of the 
298.35  number of beds accepted.  The commissioner shall place all 
298.36  transferred beds on layaway status held in the name of the 
299.1   receiving facility.  The layaway adjustment provisions of 
299.2   section 256B.431, subdivision 30, do not apply to this layaway.  
299.3   The receiving facility may only remove the beds from layaway for 
299.4   recertification and relicensure at the receiving facility's 
299.5   current site, or at a newly constructed facility located in 
299.6   Anoka county.  The receiving facility must receive statutory 
299.7   authorization before removing the beds from layaway status; 
299.8      (gg) to license and certify up to 120 new nursing facility 
299.9   beds to replace beds in a facility in Anoka county, which was 
299.10  licensed for 98 beds as of July 1, 2000, provided the new 
299.11  facility is located within four miles of the existing facility 
299.12  and is in Anoka county.  Operating and property rates will be 
299.13  determined and allowed under section 256B.431 and Minnesota 
299.14  Rules, parts 9549.0010 to 9549.0080, or section 256B.434 or 
299.15  256B.435.  The provisions of section 256B.431, subdivision 26, 
299.16  paragraphs (a) and (b), do not apply until the second rate year 
299.17  following settle-up; or 
299.18     (hh) to license and certify a total replacement project of 
299.19  up to 124 beds located in Wilkin county that are in need of 
299.20  relocation from a nursing home substantially destroyed by 
299.21  flood.  The operating cost payment rates for the new nursing 
299.22  facility shall be determined based on the interim and settle-up 
299.23  payment provisions of Minnesota Rules, part 9549.0057, and the 
299.24  reimbursement provisions of section 256B.431, except that 
299.25  section 256B.431, subdivision 26, paragraphs (a) and (b), shall 
299.26  not apply until the second rate year after the settle-up cost 
299.27  report is filed.  Property-related reimbursement rates shall be 
299.28  determined under section 256B.431, taking into account any 
299.29  federal or state flood-related loans or grants provided to the 
299.30  facility. 
299.31     Sec. 7.  Minnesota Statutes 2000, section 144A.073, 
299.32  subdivision 2, is amended to read: 
299.33     Subd. 2.  [REQUEST FOR PROPOSALS.] At the authorization by 
299.34  the legislature of additional medical assistance expenditures 
299.35  for exceptions to the moratorium on nursing homes, the 
299.36  interagency committee shall publish in the State Register a 
300.1   request for proposals for nursing home projects to be licensed 
300.2   or certified under section 144A.071, subdivision 4a, clause 
300.3   (c).  The public notice of this funding and the request for 
300.4   proposals must specify how the approval criteria will be 
300.5   prioritized by the advisory review panel, the interagency 
300.6   long-term care planning committee, and the commissioner.  The 
300.7   notice must describe the information that must accompany a 
300.8   request and state that proposals must be submitted to the 
300.9   interagency committee within 90 days of the date of 
300.10  publication.  The notice must include the amount of the 
300.11  legislative appropriation available for the additional costs to 
300.12  the medical assistance program of projects approved under this 
300.13  section.  If no money is appropriated for a year, the 
300.14  interagency committee shall publish a notice to that effect, and 
300.15  no proposals shall be requested.  If money is appropriated, the 
300.16  interagency committee shall initiate the application and review 
300.17  process described in this section at least twice each biennium 
300.18  and up to four times each biennium, according to dates 
300.19  established by rule.  Authorized funds shall be allocated 
300.20  proportionally to the number of processes.  Funds not encumbered 
300.21  by an earlier process within a biennium shall carry forward to 
300.22  subsequent iterations of the process.  Authorization for 
300.23  expenditures does not carry forward into the following 
300.24  biennium.  To be considered for approval, a proposal must 
300.25  include the following information: 
300.26     (1) whether the request is for renovation, replacement, 
300.27  upgrading, conversion, or relocation; 
300.28     (2) a description of the problem the project is designed to 
300.29  address; 
300.30     (3) a description of the proposed project; 
300.31     (4) an analysis of projected costs of the nursing facility 
300.32  proposal, which are not required to exceed the cost threshold 
300.33  referred to in section 144A.071, subdivision 1, to be considered 
300.34  under this section, including initial construction and 
300.35  remodeling costs; site preparation costs; technology costs; 
300.36  financing costs, including the current estimated long-term 
301.1   financing costs of the proposal, which consists of estimates of 
301.2   the amount and sources of money, reserves if required under the 
301.3   proposed funding mechanism, annual payments schedule, interest 
301.4   rates, length of term, closing costs and fees, insurance costs, 
301.5   and any completed marketing study or underwriting review; and 
301.6   estimated operating costs during the first two years after 
301.7   completion of the project; 
301.8      (5) for proposals involving replacement of all or part of a 
301.9   facility, the proposed location of the replacement facility and 
301.10  an estimate of the cost of addressing the problem through 
301.11  renovation; 
301.12     (6) for proposals involving renovation, an estimate of the 
301.13  cost of addressing the problem through replacement; 
301.14     (7) the proposed timetable for commencing construction and 
301.15  completing the project; 
301.16     (8) a statement of any licensure or certification issues, 
301.17  such as certification survey deficiencies; 
301.18     (9) the proposed relocation plan for current residents if 
301.19  beds are to be closed so that the department of human services 
301.20  can estimate the total costs of a proposal; and 
301.21     (10) other information required by permanent rule of the 
301.22  commissioner of health in accordance with subdivisions 4 and 8. 
301.23     Sec. 8.  [144A.161] [NURSING FACILITY RESIDENT RELOCATION.] 
301.24     Subdivision 1.  [DEFINITIONS.] The definitions in this 
301.25  subdivision apply to subdivisions 2 to 10. 
301.26     (a) "Closure" means the cessation of operations of a 
301.27  nursing home and the delicensure and decertification of all beds 
301.28  within the facility. 
301.29     (b) "Curtailment," "reduction," or "change" refers to any 
301.30  change in operations which would result in or encourage the 
301.31  relocation of residents. 
301.32     (c) "Facility" means a nursing home licensed pursuant to 
301.33  this chapter, or a certified boarding care home licensed 
301.34  pursuant to sections 144.50 to 144.56. 
301.35     (d) "Licensee" means the owner of the facility or the 
301.36  owner's designee or the commissioner of health for a facility in 
302.1   receivership.  
302.2      (e) "Local agency" means the county or multicounty social 
302.3   service agency authorized under sections 393.01 and 393.07, as 
302.4   the agency responsible for providing social services for the 
302.5   county in which the nursing home is located. 
302.6      (f) "Plan" means a process developed under subdivision 3, 
302.7   paragraph (b), for the closure, curtailment, reduction, or 
302.8   change in operations in a facility and the subsequent relocation 
302.9   of residents. 
302.10     (g) "Relocation" means the discharge of a resident and 
302.11  movement of the resident to another facility or living 
302.12  arrangement as a result of the closing, curtailment, reduction, 
302.13  or change in operations of a nursing home or boarding care home. 
302.14     Subd. 2.  [INITIAL NOTICE FROM LICENSEE.] (a) The licensee 
302.15  of the facility shall notify the following parties in writing 
302.16  when there is an intent to close, curtail, reduce, or change 
302.17  operations or services which would result in or encourage the 
302.18  relocation of residents:  the commissioner of health, the 
302.19  commissioner of human services, the local agency, the office of 
302.20  ombudsman for older Minnesotans, and the ombudsman for mental 
302.21  health/mental retardation. 
302.22     (b) The written notice shall include the names, telephone 
302.23  numbers, facsimile numbers, and e-mail addresses of the persons 
302.24  responsible for coordinating the licensee's efforts in the 
302.25  planning process, and the number of residents potentially 
302.26  affected by the closure, curtailment, reduction, or change in 
302.27  operations. 
302.28     Subd. 3.  [PLANNING PROCESS.] (a) The local agency shall, 
302.29  within five working days of receiving initial notice of the 
302.30  licensee's intent to close, curtail, reduce, or change 
302.31  operations, provide the licensee and all parties identified in 
302.32  subdivision 2, paragraph (a), with the names, telephone numbers, 
302.33  facsimile numbers, and e-mail addresses of those persons 
302.34  responsible for coordinating local agency efforts in the 
302.35  planning process. 
302.36     (b) The licensee shall convene a meeting with the local 
303.1   agency to jointly develop a plan regarding the closure, 
303.2   curtailment, or change in facility operations.  The licensee 
303.3   shall notify representatives of the departments of health and 
303.4   human services of the date, time, and location of the meeting so 
303.5   that representatives from the departments may attend.  The 
303.6   licensee must allow a minimum of 28 days for this planning 
303.7   process from the day of the initial notice.  However, the plan 
303.8   may be finalized on an earlier schedule agreed to by all 
303.9   parties.  To the extent practicable, consistent with 
303.10  requirements to protect the safety and health of residents, the 
303.11  commissioner may authorize the planning process under this 
303.12  subdivision to occur concurrent with the 60 day notice required 
303.13  under subdivision 5, paragraph (e).  The plan shall: 
303.14     (1) identify the expected date of closure, curtailment, 
303.15  reduction, or change in operations; 
303.16     (2) outline the process for public notification of the 
303.17  closure, curtailment, reduction, or change in operations; 
303.18     (3) identify and make efforts to include other stakeholders 
303.19  in the planning process; 
303.20     (4) outline the process to ensure 60-day advance written 
303.21  notice to residents, family members, and designated 
303.22  representatives; 
303.23     (5) present an aggregate description of the resident 
303.24  population remaining to be relocated and their needs; 
303.25     (6) outline the individual resident assessment process to 
303.26  be utilized; 
303.27     (7) identify an inventory of available relocation options, 
303.28  including home and community-based services; 
303.29     (8) identify a timeline for submission of the list 
303.30  identified in subdivision 5, paragraph (h); and 
303.31     (9) identify a schedule for the timely completion of each 
303.32  element of the plan.  
303.33     Subd. 4.  [RESPONSIBILITIES OF LICENSEE FOR RESIDENT 
303.34  RELOCATIONS.] The licensee shall provide for the safe, orderly, 
303.35  and appropriate relocation of residents.  The licensee and 
303.36  facility staff shall cooperate with representatives from the 
304.1   local agency, the department of health, the department of human 
304.2   services, the office of ombudsman for older Minnesotans, and 
304.3   ombudsman for mental health/mental retardation, in planning for 
304.4   and implementing the relocation of residents.  The discharge and 
304.5   relocation of residents must comply with all applicable state 
304.6   and federal requirements. 
304.7      Subd. 5.  [RESPONSIBILITIES PRIOR TO RELOCATION.] (a) The 
304.8   licensee shall provide an initial notice as described in 
304.9   subdivision 2, when there is an intent to close, curtail, 
304.10  reduce, or change in operations which would result in or 
304.11  encourage the relocation of residents. 
304.12     (b) The licensee shall establish an interdisciplinary team 
304.13  responsible for coordinating and implementing the plan as 
304.14  outlined in subdivision 3, paragraph (b).  The interdisciplinary 
304.15  team shall include representatives from the local agency, the 
304.16  office of ombudsman for older Minnesotans, facility staff that 
304.17  provide direct care services to the residents, and facility 
304.18  administration. 
304.19     (c) The licensee shall provide a list to the local agency 
304.20  that includes the following information on each resident to be 
304.21  relocated: 
304.22     (1) the resident's name; 
304.23     (2) date of birth; 
304.24     (3) social security number; 
304.25     (4) medical assistance identification number; 
304.26     (5) all diagnoses; and 
304.27     (6) the name and contact information for the resident's 
304.28  family or other designated representative. 
304.29     (d) The licensee shall consult with the local agency on the 
304.30  availability and development of available resources, and on the 
304.31  resident relocation process. 
304.32     (e) At least 60 days before the proposed date of closing, 
304.33  curtailment, reduction, or change in operations as agreed to in 
304.34  the plan, the licensee shall send a written notice of closure, 
304.35  curtailment, reduction, or change in operations to each resident 
304.36  being relocated, the resident's family member or designated 
305.1   representative, and the resident's attending physician.  The 
305.2   notice must include the following: 
305.3      (1) the date of the proposed closure, curtailment, 
305.4   reduction, or change in operations; 
305.5      (2) the name, address, telephone number, facsimile number, 
305.6   and e-mail address of the individual or individuals in the 
305.7   facility responsible for providing assistance and information; 
305.8      (3) notification of upcoming meetings for residents, 
305.9   families and designated representatives, and resident and family 
305.10  councils 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 ombudsman for older Minnesotans and the ombudsman for mental 
305.15  health/mental retardation; and 
305.16     (6) a notice of resident rights during discharge and 
305.17  relocation, in a form approved by the office of ombudsman for 
305.18  older Minnesotans. 
305.19     The notice must comply with all applicable state and 
305.20  federal requirements for notice of transfer or discharge of 
305.21  nursing home residents. 
305.22     (f) The licensee shall request the attending physician 
305.23  provide or arrange for the release of medical information needed 
305.24  to update resident medical records and prepare all required 
305.25  forms and discharge summaries. 
305.26     (g) The licensee shall provide sufficient preparation to 
305.27  residents to ensure safe, orderly and appropriate discharge, and 
305.28  relocation.  The licensee shall assist residents in finding 
305.29  placements that respond to personal preferences, such as desired 
305.30  geographic location.  
305.31     (h) The licensee shall prepare a resource list with several 
305.32  relocation options for each resident.  The list must contain the 
305.33  following information for each relocation option, when 
305.34  applicable: 
305.35     (1) the name, address, and telephone and facsimile numbers 
305.36  of each facility with appropriate, available beds or services; 
306.1      (2) the certification level of the available beds; 
306.2      (3) the types of services available; 
306.3      (4) the name, address, and telephone and facsimile numbers 
306.4   of appropriate available home and community-based placements, 
306.5   services and settings, or other options for individuals with 
306.6   special needs.  
306.7   The list shall be made available to residents and their families 
306.8   or designated representatives, and upon request to the office of 
306.9   ombudsman for older Minnesotans and ombudsman for mental 
306.10  health/mental retardation, and the local agency. 
306.11     (i) Following the establishment of the plan under 
306.12  subdivision 3, paragraph (b), the licensee shall conduct 
306.13  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 county social services agency, the office of ombudsman 
306.17  for older Minnesotans, the ombudsman for mental health and 
306.18  mental retardation, the commissioner of health, and the 
306.19  commissioner of human services shall receive advance notice of 
306.20  the meetings.  
306.21     (j) The licensee shall assist residents desiring to make 
306.22  site visits to facilities with available beds or other 
306.23  appropriate living options to which the resident may relocate, 
306.24  unless it is medically inadvisable, as documented by the 
306.25  attending physician in the resident's care record.  The licensee 
306.26  shall provide transportation for site visits to facilities or 
306.27  other living options within a 50-mile radius to which the 
306.28  resident may relocate.  The licensee shall provide available 
306.29  written materials to residents on a potential new facility or 
306.30  living option. 
306.31     (k) The licensee shall complete an inventory of resident 
306.32  personal possessions and provide a copy of the final inventory 
306.33  to the resident and the resident's designated representative 
306.34  prior to relocation.  The licensee shall be responsible for the 
306.35  transfer of the resident's possessions for all relocations 
306.36  within a 50-mile radius of the facility.  The licensee shall 
307.1   complete the transfer of resident possessions in a timely 
307.2   manner, but no later than the date of the actual physical 
307.3   relocation of the resident. 
307.4      (l) The licensee shall complete a final accounting of 
307.5   personal funds held in trust by the facility and provide a copy 
307.6   of this accounting to the resident and the resident's family or 
307.7   the resident's designated representative.  The licensee shall be 
307.8   responsible for the transfer of all personal funds held in trust 
307.9   by the facility.  The licensee shall complete the transfer of 
307.10  all personal funds in a timely manner. 
307.11     (m) The licensee shall assist residents with the transfer 
307.12  and reconnection of service for telephones or other personal 
307.13  communication devices or services.  The licensee shall pay the 
307.14  costs associated with reestablishing service for telephones or 
307.15  other personal communication devices or services, such as 
307.16  connection fees or other one-time charges.  The transfer or 
307.17  reconnection of personal communication devices or services shall 
307.18  be completed in a timely manner. 
307.19     (n) The licensee shall provide the resident, the resident's 
307.20  family or designated representative, and the resident's 
307.21  attending physician final written notice prior to the relocation 
307.22  of the resident.  The notice must: 
307.23     (1) be provided seven days prior to the actual relocation, 
307.24  unless the resident agrees to waive the right to advance notice; 
307.25  and 
307.26     (2) identify the date of the anticipated relocation and the 
307.27  destination to which the resident is being relocated. 
307.28     (o) The licensee shall provide the receiving facility or 
307.29  other health, housing, or care entity with complete and accurate 
307.30  resident records including information on family members, 
307.31  designated representatives, guardians, social service 
307.32  caseworkers, or other contact information.  These records must 
307.33  also include all information necessary to provide appropriate 
307.34  medical care and social services.  This includes, but is not 
307.35  limited to, information on preadmission screening, Level I and 
307.36  Level II screening, Minimum Data Set (MDS) and all other 
308.1   assessments, resident diagnoses, social, behavioral, and 
308.2   medication information. 
308.3      Subd. 6.  [RESPONSIBILITIES OF THE LICENSEE DURING 
308.4   RELOCATION.] (a) The licensee shall arrange for the safe 
308.5   transport of residents to the new facility or placement. 
308.6      (b) The licensee must ensure that there is no disruption in 
308.7   the provision of meals, medications, or treatments of the 
308.8   resident during the relocation process. 
308.9      (c) Beginning the week following development of the initial 
308.10  relocation plan, the licensee shall submit biweekly status 
308.11  reports to the commissioners of the department of health and the 
308.12  department of human services or their designees, and to the 
308.13  local agency.  The initial status report must identify: 
308.14     (1) the relocation plan developed; 
308.15     (2) the interdisciplinary team members; and 
308.16     (3) the number of residents to be relocated. 
308.17     (d) Subsequent status reports must identify: 
308.18     (1) any modifications to the plan; 
308.19     (2) any change of interdisciplinary team members; 
308.20     (3) the number of residents relocated; 
308.21     (4) the destination to which residents have been relocated; 
308.22     (5) the number of residents remaining to be relocated; and 
308.23     (6) issues or problems encountered during the process and 
308.24  resolution of these issues. 
308.25     Subd. 7.  [RESPONSIBILITIES OF THE LICENSEE FOLLOWING 
308.26  RELOCATION.] The licensee shall retain or make arrangements for 
308.27  the retention of all remaining resident records, for the period 
308.28  required by law.  The licensee shall provide the department of 
308.29  health access to these records.  The licensee shall notify the 
308.30  department of health of the location of any resident records 
308.31  that have not been transferred to the new facility or other 
308.32  health care entity. 
308.33     Subd. 8.  [RESPONSIBILITIES OF THE LOCAL AGENCY.] (a) The 
308.34  local agency shall participate in the meeting as outlined in 
308.35  subdivision 3, paragraph (b), to develop a relocation plan. 
308.36     (b) The local agency shall designate a representative to 
309.1   the interdisciplinary team established by the licensee 
309.2   responsible for coordinating the relocation efforts. 
309.3      (c) The local agency shall serve as a resource in the 
309.4   relocation process. 
309.5      (d) Concurrent with the notice sent to residents from the 
309.6   licensee as provided in subdivision 5, paragraph (e), the local 
309.7   agency shall provide written notice to residents, family, or 
309.8   designated representatives describing: 
309.9      (1) the county's role in the relocation process and in the 
309.10  follow-up to relocations; 
309.11     (2) a local agency contact name, address, and telephone 
309.12  number; and 
309.13     (3) the name, address, and telephone number of the office 
309.14  of ombudsman for older Minnesotans and the ombudsman for mental 
309.15  health/mental retardation. 
309.16     (e) The local agency designee shall meet with appropriate 
309.17  facility staff to coordinate any assistance in the relocation 
309.18  process.  This coordination shall include participating in group 
309.19  meetings with residents, families, and designated 
309.20  representatives to explain the relocation process. 
309.21     (f) The local agency shall monitor compliance with all 
309.22  components of the plan.  If the licensee is not in compliance, 
309.23  the local agency shall notify the commissioners of the 
309.24  department of health and the department of human services. 
309.25     (g) The local agency shall report to the commissioners of 
309.26  health and human services any relocations that endanger the 
309.27  health, safety, or well-being of residents.  The local agency 
309.28  shall pursue remedies to protect the resident during the 
309.29  relocation process, including, but not limited to, assisting the 
309.30  resident with filing an appeal of transfer or discharge, 
309.31  notification of all appropriate licensing boards and agencies, 
309.32  and other remedies available to the county under section 
309.33  626.557, subdivision 10. 
309.34     (h) A member of the local agency staff shall visit 
309.35  residents relocated within one hundred miles of the county 
309.36  within 30 days after the relocation.  Local agency staff shall 
310.1   interview the resident and family or designated representative, 
310.2   observe the resident on site, and review and discuss pertinent 
310.3   medical or social records with facility staff to: 
310.4      (1) assess the adjustment of the resident to the new 
310.5   placement; 
310.6      (2) recommend services or methods to meet any special needs 
310.7   of the resident; and 
310.8      (3) identify residents at risk. 
310.9      (i) The local agency shall have the authority to conduct 
310.10  subsequent follow-up visits in cases where the adjustment of the 
310.11  resident to the new placement is in question. 
310.12     (j) Within 60 days of the completion of the follow-up 
310.13  visits, the local agency shall submit a written summary of the 
310.14  follow-up work to the department of health and the department of 
310.15  human services, in a manner approved by the commissioners. 
310.16     (k) The local agency shall submit to the department of 
310.17  health and the department of human services a report of any 
310.18  issues that may require further review or monitoring. 
310.19     (l) The local agency shall be responsible for the safe and 
310.20  orderly relocation of residents in cases where an emergent need 
310.21  arises or when the licensee has abrogated its responsibilities 
310.22  under the plan. 
310.23     Subd. 9.  [FUNDING.] The commissioner of human services 
310.24  shall negotiate with the local agency to determine an amount of 
310.25  administrative funding within appropriations specified for this 
310.26  purpose to make available to the local agency for the costs of 
310.27  work related to the relocation process in accordance with 
310.28  section 256B.437, subdivision 9. 
310.29     Subd. 10.  [PENALTIES.] According to sections 144.653 and 
310.30  144A.10, the licensee shall be subject to correction orders and 
310.31  civil monetary penalties of up to $500 per day for each 
310.32  violation of this statute. 
310.33     Sec. 9.  [144A.1888] [REUSE OF FACILITIES.] 
310.34     Notwithstanding any local ordinance related to development, 
310.35  planning, or zoning to the contrary, the conversion or reuse of 
310.36  a nursing home that closes or that curtails, reduces, or changes 
311.1   operations shall be considered a conforming use permitted under 
311.2   local law, provided that the facility is converted to another 
311.3   long-term care service approved by a regional planning group 
311.4   under section 256B.437 that serves a smaller number of persons 
311.5   than the number of persons served before the closure or 
311.6   curtailment, reduction, or change in operations. 
311.7      Sec. 10.  Minnesota Statutes 2000, section 256B.431, 
311.8   subdivision 2e, is amended to read: 
311.9      Subd. 2e.  [CONTRACTS FOR SERVICES FOR VENTILATOR-DEPENDENT 
311.10  PERSONS.] The commissioner may contract with a nursing facility 
311.11  eligible to receive medical assistance payments to provide 
311.12  services to a ventilator-dependent person identified by the 
311.13  commissioner according to criteria developed by the 
311.14  commissioner, including:  
311.15     (1) nursing facility care has been recommended for the 
311.16  person by a preadmission screening team; 
311.17     (2) the person has been assessed at case mix classification 
311.18  K; 
311.19     (3) the person has been hospitalized for at least six 
311.20  months and no longer requires inpatient acute care hospital 
311.21  services; and 
311.22     (4) (3) the commissioner has determined that necessary 
311.23  services for the person cannot be provided under existing 
311.24  nursing facility rates.  
311.25     The commissioner may issue a request for proposals to 
311.26  provide services to a ventilator-dependent person to nursing 
311.27  facilities eligible to receive medical assistance payments and 
311.28  shall select nursing facilities from among respondents according 
311.29  to criteria developed by the commissioner, including:  
311.30     (1) the cost-effectiveness and appropriateness of services; 
311.31     (2) the nursing facility's compliance with federal and 
311.32  state licensing and certification standards; and 
311.33     (3) the proximity of the nursing facility to a 
311.34  ventilator-dependent person identified by the commissioner who 
311.35  requires nursing facility placement.  
311.36     The commissioner may negotiate an adjustment to the 
312.1   operating cost payment rate for a nursing facility selected by 
312.2   the commissioner from among respondents to the request for 
312.3   proposals.  The negotiated adjustment must reflect only the 
312.4   actual additional cost of meeting the specialized care needs of 
312.5   a ventilator-dependent person identified by the commissioner for 
312.6   whom necessary services cannot be provided under existing 
312.7   nursing facility rates and which are not otherwise covered under 
312.8   Minnesota Rules, parts 9549.0010 to 9549.0080 or 9505.0170 to 
312.9   9505.0475.  For persons who are initially admitted to a nursing 
312.10  facility before July 1, 2001, and have their payment rate under 
312.11  this subdivision negotiated after July 1, 2001, the negotiated 
312.12  payment rate must not exceed 200 percent of the highest multiple 
312.13  bedroom payment rate for a Minnesota nursing the facility, as 
312.14  initially established by the commissioner for the rate year for 
312.15  case mix classification K.  For persons initially admitted to a 
312.16  nursing facility on or after July 1, 2001, the negotiated 
312.17  payment rate must not exceed 300 percent of the facility's 
312.18  multiple bedroom payment rate for case mix classification K.  
312.19  The negotiated adjustment shall not affect the payment rate 
312.20  charged to private paying residents under the provisions of 
312.21  section 256B.48, subdivision 1. 
312.22     Sec. 11.  Minnesota Statutes 2000, section 256B.431, is 
312.23  amended by adding a subdivision to read: 
312.24     Subd. 31.  [NURSING FACILITY RATE INCREASES BEGINNING JULY 
312.25  1, 2001, AND JULY 1, 2002.] (a) For the rate years beginning 
312.26  July 1, 2001, and July 1, 2002, the commissioner shall make 
312.27  available to each nursing facility reimbursed under this section 
312.28  or section 256B.434 an adjustment of 3.0 percent to the total 
312.29  operating payment rates in effect on June 30, 2001, and June 30, 
312.30  2002, respectively.  The operating payment rate in effect on 
312.31  June 30, 2001, must include the adjustment in subdivision 2i, 
312.32  paragraph (c).  The adjustment must be used to increase the 
312.33  wages of all employees except management fees, the 
312.34  administrator, and central office staff and to pay associated 
312.35  costs for FICA, the Medicare tax, workers' compensation 
312.36  premiums, and federal and state unemployment insurance. 
313.1      Money received by a facility as a result of the additional 
313.2   rate increase provided under this paragraph must be used only 
313.3   for wage increases implemented on or after July 1, 2001, or July 
313.4   1, 2002, respectively, and must not be used for wage increases 
313.5   implemented prior to those dates. 
313.6      (b) Nursing facilities may apply for the wage-related 
313.7   payment rate adjustment calculated under paragraph (a).  The 
313.8   application must be made to the commissioner and contain a plan 
313.9   by which the nursing facility will distribute the payment rate 
313.10  adjustment to employees of the nursing facility.  For nursing 
313.11  facilities in which the employees are represented by an 
313.12  exclusive bargaining representative, an agreement negotiated and 
313.13  agreed to by the employer and the exclusive bargaining 
313.14  representative constitutes the plan.  A negotiated agreement may 
313.15  constitute the plan only if the agreement is finalized after the 
313.16  date of enactment of all increases for the rate year.  The 
313.17  commissioner shall review the plan to ensure that the 
313.18  wage-related payment rate adjustment per diem is used as 
313.19  provided in paragraph (a).  To be eligible, a facility must 
313.20  submit its plan for the wage distribution by December 31 each 
313.21  year.  If a facility's plan for wage distribution is effective 
313.22  for its employees after July 1 of the year that the funds are 
313.23  available, the payment rate adjustment per diem is effective the 
313.24  same date as its plan. 
313.25     (c) A hospital-attached nursing facility may include costs 
313.26  in their distribution plan for wages and wage-related costs of 
313.27  employees in the organization's shared services departments, 
313.28  provided that: 
313.29     (1) the nursing facility and the hospital share common 
313.30  ownership; and 
313.31     (2) adjustments for hospital services using the 
313.32  diagnostic-related grouping payment rates per admission under 
313.33  medical assistance or Medicare are less than three percent 
313.34  during the 12 months prior to the effective date of this 
313.35  increase. 
313.36     If a hospital-attached facility meets the qualifications in 
314.1   this paragraph, the difference between the rate increase 
314.2   approved for nursing facility services and the rate increase 
314.3   approved for hospital services may be permitted as a 
314.4   distribution in the hospital-attached facility's plan regardless 
314.5   of whether the use of those funds is shown as being attributable 
314.6   to employee hours worked in the nursing facility or employee 
314.7   hours worked in the hospital. 
314.8      For the purposes of this paragraph, a hospital-attached 
314.9   nursing facility is one that meets the definition under 
314.10  subdivision 2j, or, in the case of a facility reimbursed under 
314.11  section 256B.434, met this definition at the time their last 
314.12  payment rate was established under Minnesota Rules, parts 
314.13  9549.0010 to 9549.0080, and this section. 
314.14     (d) A copy of the approved distribution plan must be made 
314.15  available to all employees by giving each employee a copy or by 
314.16  posting it in an area of the nursing facility to which all 
314.17  employees have access.  If an employee does not receive the wage 
314.18  adjustment described in the facility's approved plan and is 
314.19  unable to resolve the problem with the facility's management or 
314.20  through the employee's union representative, the employee may 
314.21  contact the commissioner at an address or telephone number 
314.22  provided by the commissioner and included in the approved plan.  
314.23     (e) Notwithstanding section 256B.48, subdivision 1, clause 
314.24  (a), upon the request of a nursing facility, the commissioner 
314.25  may authorize the facility to raise per diem rates for 
314.26  private-pay residents on July 1 by the amount anticipated to be 
314.27  required upon implementation of the wage-related increase 
314.28  available under this subdivision.  The commissioner shall 
314.29  require any amounts collected under this paragraph to be placed 
314.30  in an escrow account until the medical assistance rate is 
314.31  finalized.  The commissioner shall conduct audits as necessary 
314.32  to ensure that: 
314.33     (1) the amounts collected are retained in escrow until 
314.34  medical assistance rates are increased to reflect the 
314.35  wage-related adjustment; and 
314.36     (2) any amounts collected from private-pay residents in 
315.1   excess of the final medical assistance wage-related rate 
315.2   increase are repaid to the private-pay residents with interest 
315.3   at the rate used by the commissioner of revenue for the late 
315.4   payment of taxes and in effect on the date the distribution plan 
315.5   is approved by the commissioner of human services. 
315.6      (f) For the rate year beginning July 1, 2001, the 
315.7   commissioner shall make available to each nursing facility that 
315.8   is reimbursed under this section or section 256B.434 and had 35 
315.9   or fewer admissions during calendar year 2000 an adjustment of 
315.10  1.0 percent to the total operating payment rates in effect on 
315.11  June 30, 2001. 
315.12  The operating payment rate in effect on June 30, 2001, must 
315.13  include the adjustment in subdivision 2i, paragraph (c). 
315.14     Sec. 12.  Minnesota Statutes 2000, section 256B.431, is 
315.15  amended by adding a subdivision to read: 
315.16     Subd. 32.  [PAYMENT DURING FIRST 90 DAYS.] (a) For rate 
315.17  years beginning on or after July 1, 2001, the total payment rate 
315.18  for a facility reimbursed under this section, section 256B.434, 
315.19  or any other section for the first 90 paid days after admission 
315.20  shall be: 
315.21     (1) for the first 30 paid days, the rate shall be 120 
315.22  percent of the facility's medical assistance rate for each case 
315.23  mix class; and 
315.24     (2) for the next 60 paid days after the first 30 paid days, 
315.25  the rate shall be 110 percent of the facility's medical 
315.26  assistance rate for each case mix class. 
315.27     (b) Beginning with the 91st paid day after admission, the 
315.28  payment rate shall be the rate otherwise determined under this 
315.29  section, section 256B.434, or any other section. 
315.30     Sec. 13.  Minnesota Statutes 2000, section 256B.431, is 
315.31  amended by adding a subdivision to read: 
315.32     Subd. 34.  [STAGED REDUCTION IN RATE DISPARITIES.] (a) The 
315.33  commissioner, by June 30, 2001, shall provide each nursing 
315.34  facility with information on how its per diem operating payment 
315.35  rates for each case mix category compare to the median per diem 
315.36  rates for facilities in geographic group three, as determined 
316.1   under Minnesota Rules, part 9549.0052. 
316.2      (b) The commissioner shall provide nursing facilities 
316.3   reimbursed under this section or section 256B.434 with the 
316.4   following staged rate increases, for each case mix category 
316.5   operating payment per diem that is below the median for 
316.6   facilities in geographic group three: 
316.7      (1) effective July 1, 2001, the commissioner shall allow 
316.8   increases in the total operating payment per diems for each 
316.9   facility of up to 38 percent of the difference between that 
316.10  facility's operating payment rate in effect on June 30, 2001, 
316.11  for each case mix category and 85 percent of the median payment 
316.12  rate in effect on June 30, 2001, for that category for 
316.13  facilities in geographic group three; 
316.14     (2) effective July 1, 2002, the commissioner shall allow 
316.15  increases in the total operating payment per diems for each 
316.16  facility by 38 percent of the difference between that facility's 
316.17  operating payment rate in effect on June 30, 2002, for each case 
316.18  mix category and 85 percent of the median payment rate in effect 
316.19  on June 30, 2002, for that category for facilities in geographic 
316.20  group three; and 
316.21     (3) effective July 1, 2003, the commissioner shall allow 
316.22  increases in the total operating payment per diems for each 
316.23  facility by 24 percent of the difference between that facility's 
316.24  operating payment rate in effect on June 30, 2003, for each case 
316.25  mix category and 100 percent of the median payment rate in 
316.26  effect on June 30, 2003, for each case mix category for 
316.27  facilities in geographic group three. 
316.28     (c) In order to receive the rate increases provided in 
316.29  paragraph (b), facilities must apply to the commissioner.  A 
316.30  facility must submit an application for each rate increase by 
316.31  December 31 of the calendar year in which the increase is 
316.32  allowed, using a form provided by the commissioner.  The 
316.33  application must include a plan for use of the rate increase and 
316.34  any other information deemed necessary by the commissioner to 
316.35  determine the amount of an increase that will be allowed.  The 
316.36  commissioner shall deny a request for a rate increase, or reduce 
317.1   the rate increase provided, if the commissioner determines that 
317.2   the proposed plan for using the rate increase is not an approved 
317.3   use of funding under Minnesota Rules, parts 9549.0010 to 
317.4   9549.0080.  A facility whose request has been denied or reduced 
317.5   may reapply for a rate increase.  Rate increases approved by the 
317.6   commissioner shall be effective on the first day of the month 
317.7   following the month which the application was received by the 
317.8   commissioner, but not before July 1 of the year in which it is 
317.9   allowed. 
317.10     (d) A facility must make a copy of the approved application 
317.11  available to residents, their designated representatives, and 
317.12  employees, by posting it in an area of the facility to which 
317.13  these individuals have access, or by providing these individuals 
317.14  with copies.  
317.15     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
317.16  following final enactment. 
317.17     Sec. 14.  Minnesota Statutes 2000, section 256B.433, 
317.18  subdivision 3a, is amended to read: 
317.19     Subd. 3a.  [EXEMPTION FROM REQUIREMENT FOR SEPARATE THERAPY 
317.20  BILLING.] The provisions of subdivision 3 do not apply to 
317.21  nursing facilities that are reimbursed according to the 
317.22  provisions of section 256B.431 and are located in a county 
317.23  participating in the prepaid medical assistance program.  
317.24  Nursing facilities that are reimbursed according to the 
317.25  provisions of section 256B.434 and are located in a county 
317.26  participating in the prepaid medical assistance program are 
317.27  exempt from the maximum therapy rent revenue provisions of 
317.28  subdivision 3, paragraph (c). 
317.29     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
317.30  following final enactment. 
317.31     Sec. 15.  Minnesota Statutes 2000, section 256B.434, 
317.32  subdivision 4, is amended to read: 
317.33     Subd. 4.  [ALTERNATE RATES FOR NURSING FACILITIES.] (a) For 
317.34  nursing facilities which have their payment rates determined 
317.35  under this section rather than section 256B.431, the 
317.36  commissioner shall establish a rate under this subdivision.  The 
318.1   nursing facility must enter into a written contract with the 
318.2   commissioner. 
318.3      (b) A nursing facility's case mix payment rate for the 
318.4   first rate year of a facility's contract under this section is 
318.5   the payment rate the facility would have received under section 
318.6   256B.431. 
318.7      (c) A nursing facility's case mix payment rates for the 
318.8   second and subsequent years of a facility's contract under this 
318.9   section are the previous rate year's contract payment rates plus 
318.10  an inflation adjustment.  The index for the inflation adjustment 
318.11  must be based on the change in the Consumer Price Index-All 
318.12  Items (United States City average) (CPI-U) forecasted by Data 
318.13  Resources, Inc., as forecasted in the fourth quarter of the 
318.14  calendar year preceding the rate year.  The inflation adjustment 
318.15  must be based on the 12-month period from the midpoint of the 
318.16  previous rate year to the midpoint of the rate year for which 
318.17  the rate is being determined.  For the rate years beginning on 
318.18  July 1, 1999, and July 1, 2000, July 1, 2001, and July 1, 2002, 
318.19  this paragraph shall apply only to the property-related payment 
318.20  rate.  In determining the amount of the property-related payment 
318.21  rate adjustment under this paragraph, the commissioner shall 
318.22  determine the proportion of the facility's rates that are 
318.23  property-related based on the facility's most recent cost report.
318.24     (d) The commissioner shall develop additional 
318.25  incentive-based payments of up to five percent above the 
318.26  standard contract rate for achieving outcomes specified in each 
318.27  contract.  The specified facility-specific outcomes must be 
318.28  measurable and approved by the commissioner.  The commissioner 
318.29  may establish, for each contract, various levels of achievement 
318.30  within an outcome.  After the outcomes have been specified the 
318.31  commissioner shall assign various levels of payment associated 
318.32  with achieving the outcome.  Any incentive-based payment cancels 
318.33  if there is a termination of the contract.  In establishing the 
318.34  specified outcomes and related criteria the commissioner shall 
318.35  consider the following state policy objectives: 
318.36     (1) improved cost effectiveness and quality of life as 
319.1   measured by improved clinical outcomes; 
319.2      (2) successful diversion or discharge to community 
319.3   alternatives; 
319.4      (3) decreased acute care costs; 
319.5      (4) improved consumer satisfaction; 
319.6      (5) the achievement of quality; or 
319.7      (6) any additional outcomes proposed by a nursing facility 
319.8   that the commissioner finds desirable. 
319.9      Sec. 16.  [256B.437] [NURSING FACILITY VOLUNTARY CLOSURES 
319.10  AND PLANNING AND DEVELOPMENT OF COMMUNITY-BASED ALTERNATIVES.] 
319.11     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
319.12  subdivision apply to subdivisions 2 to 9. 
319.13     (b) "Closure" means the cessation of operations of a 
319.14  nursing facility and delicensure and decertification of all beds 
319.15  within the facility. 
319.16     (c) "Closure plan" means a plan to close a nursing facility 
319.17  and reallocate a portion of the resulting savings to provide 
319.18  planned closure rate adjustments at other facilities. 
319.19     (d) "Commencement of closure" means the date on which 
319.20  residents and designated representatives are notified of a 
319.21  planned closure in accordance with section 144A.161, subdivision 
319.22  5, paragraph (e), as part of an approved closure plan. 
319.23     (e) "Completion of closure" means the date on which the 
319.24  final resident of the nursing facility designated for closure in 
319.25  an approved closure plan is discharged from the facility. 
319.26     (f) "Partial closure" means the delicensure and 
319.27  decertification of a portion of the beds within the facility. 
319.28     (g) "Planned closure rate adjustment" means an increase in 
319.29  a nursing facility's operating rates resulting from a planned 
319.30  closure or a planned partial closure of another facility. 
319.31     Subd. 2.  [REGIONAL LONG-TERM CARE PLANNING AND 
319.32  DEVELOPMENT.] (a) The commissioner of human services shall 
319.33  establish a process to adjust the capacity and distribution of 
319.34  long-term care services to equalize the supply and demand for 
319.35  different types of services.  The process must include community 
319.36  and regional planning, expansion or establishment of needed 
320.1   services, and voluntary nursing facility closures. 
320.2      (b) The commissioner shall issue a request for proposals to 
320.3   contract with regional long-term care planning groups.  At least 
320.4   one of the planning groups must be an American Indian long-term 
320.5   care planning group.  Each group must: 
320.6      (1) consist of county health and social services agencies, 
320.7   consumers, housing agencies, a representative of nursing 
320.8   facilities, a representative of home and community-based 
320.9   services providers, a union representative, and area agencies on 
320.10  aging in the geographic area; and 
320.11     (2) serve an area that has at least 2,000 people who are 85 
320.12  years of age or older.  American Indian long-term care planning 
320.13  groups are exempt from this requirement.  
320.14  In awarding contracts, the commissioner shall give preference to 
320.15  groups that represent an entire area agency on aging region 
320.16  where there is not already a planning and development group 
320.17  established under section 256B.0917.  An area not included in a 
320.18  proposal must be included in a group convened by the area agency 
320.19  on aging of that planning and service area through a contract 
320.20  negotiated by the commissioner. 
320.21     (c) Each regional long-term care planning group shall: 
320.22     (1) conduct a detailed assessment of the region's long-term 
320.23  care services system.  This assessment must be completed within 
320.24  90 days of the contract award and must evaluate the adequacy of 
320.25  nursing facility beds and the impact of potential nursing 
320.26  facility closures.  The commissioner of health and the 
320.27  commissioner of human services, as appropriate, shall provide 
320.28  data to the group on nursing facility bed distribution, 
320.29  housing-with-service options, the closure of nursing facilities 
320.30  in the planning area that occur outside of the planned closure 
320.31  process, the approval of planned closures in the planning area, 
320.32  the addition of new community long-term care services in the 
320.33  area, the closure of existing community long-term care services 
320.34  in the area, and other available data; 
320.35     (2) plan options for increasing community capacity to 
320.36  provide more home and community-based services to reduce 
321.1   reliance on nursing facility services; 
321.2      (3) develop community services alternatives to ensure that 
321.3   sufficient community-based services are available to meet 
321.4   demand; 
321.5      (4) assist a nursing facility in the development of a 
321.6   proposal to the commissioner for voluntary bed closures under 
321.7   this section; 
321.8      (5) monitor the success of alternatives to nursing facility 
321.9   care that are developed that meet the needs of communities; 
321.10     (6) respond to requests from the commissioner for 
321.11  information about long-term care planning and development 
321.12  activities in the region; and 
321.13     (7) review and comment on nursing facility proposals 
321.14  submitted under this section. 
321.15     Subd. 2a.  [PLANNING AND DEVELOPMENT OF COMMUNITY-BASED 
321.16  SERVICES.] (a) The purpose of this subdivision is to promote the 
321.17  planning and development of community-based services prior to 
321.18  the transitioning or closure of nursing facilities.  This 
321.19  process will support early intervention, advocacy, and consumer 
321.20  protection while providing incentives for the nursing facilities 
321.21  to transition to meet community needs. 
321.22     (b) The commissioner shall establish a process to support 
321.23  and facilitate expansion of community-based services under the 
321.24  county-administered alternative care program and the elderly 
321.25  waiver program.  The process shall utilize community assessments 
321.26  and planning developed for the community health services plan 
321.27  and plan update and for the Community Social Services Act plan. 
321.28     (c) The plan shall include recommendations for development 
321.29  of community-based services, and both planning and 
321.30  implementation shall be implemented within the amount of funding 
321.31  made available to the county board for these purposes. 
321.32     (d) The plan, within the funding allocated, shall: 
321.33     (1) identify the need for services for all residents in 
321.34  each community within the county based on demographic and 
321.35  caseload information; 
321.36     (2) involve providers, consumers, cities, townships, and 
322.1   businesses in the planning process; 
322.2      (3) address the need for all alternative care and elderly 
322.3   waiver services for eligible recipients; 
322.4      (4) assess the need for other supportive services such as 
322.5   transit, housing, and workforce and economic development; 
322.6      (5) estimate the cost and timelines for development; and 
322.7      (6) coordinate with the county mental health plan, the 
322.8   community health services plan, and community social services 
322.9   plan. 
322.10     (e) The county board shall cooperate in planning and 
322.11  implementation with any county having a nursing facility that 
322.12  includes their county in the immediate service area within the 
322.13  funding allocated for these purposes. 
322.14     (f) The commissioner of health, in cooperation with the 
322.15  commissioner of human services and county boards, shall jointly 
322.16  report to the legislature by January 15 of each year regarding 
322.17  the development of community-based services, transition or 
322.18  closure of nursing facilities, and consumer outcomes achieved. 
322.19     Subd. 3.  [APPLICATIONS FOR PLANNED CLOSURE OF NURSING 
322.20  FACILITIES.] (a) By July 15, 2001, the commissioner of human 
322.21  services shall implement and announce a program for closure or 
322.22  partial closure of nursing facilities.  The announcement must 
322.23  specify: 
322.24     (1) the criteria in subdivision 4 that will be used by the 
322.25  commissioner to approve or reject applications; 
322.26     (2) the information that must accompany an application; and 
322.27     (3) that applications may combine planned closure rate 
322.28  adjustments with moratorium exception funding, in which case a 
322.29  single application may serve both purposes. 
322.30  Between August 1, 2001, and June 30, 2003, the commissioner may 
322.31  approve planned closures of up to 5,140 nursing facility beds, 
322.32  less the number of licensed beds in facilities that close during 
322.33  the same time period without approved closure plans or that have 
322.34  notified the commissioner of health of their intent to close 
322.35  without an approved closure plan. 
322.36     (b) A facility or facilities reimbursed under section 
323.1   256B.431 or 256B.434 with a closure plan approved by the 
323.2   commissioner under subdivision 6 may assign a planned closure 
323.3   rate adjustment to another facility or facilities that are not 
323.4   closing or in the case of a partial closure, to itself.  A 
323.5   facility may also elect to have a planned closure rate 
323.6   adjustment shared equally by the five nursing facilities with 
323.7   the lowest total operating payment rates in the state 
323.8   development region designated under section 462.385, in which 
323.9   the facility that is closing is located.  The planned closure 
323.10  rate adjustment must be calculated under subdivision 7.  
323.11  Facilities that close without a closure plan, or whose closure 
323.12  plan is not approved by the commissioner, are not eligible to 
323.13  assign a planned closure rate adjustment under subdivision 7.  
323.14  The commissioner shall calculate the amount the facility would 
323.15  have been eligible to assign under subdivision 7, and shall use 
323.16  this amount to provide equal rate adjustments to the five 
323.17  nursing facilities with the lowest total operating payment rates 
323.18  in the state development region designated under section 
323.19  462.385, in which the facility that closed is located. 
323.20     (c) To be considered for approval, an application must 
323.21  include: 
323.22     (1) a description of the proposed closure plan, which must 
323.23  include identification of the facility or facilities to receive 
323.24  a planned closure rate adjustment and the amount and timing of a 
323.25  planned closure rate adjustment proposed for each facility; 
323.26     (2) the proposed timetable for any proposed closure, 
323.27  including the proposed dates for announcement to residents, 
323.28  commencement of closure, and completion of closure; 
323.29     (3) the proposed relocation plan for current residents of 
323.30  any facility designated for closure.  The proposed relocation 
323.31  plan must be designed to comply with all applicable state and 
323.32  federal statutes and regulations, including, but not limited to, 
323.33  section 144A.161; 
323.34     (4) a description of the relationship between the nursing 
323.35  facility that is proposed for closure and the nursing facility 
323.36  or facilities proposed to receive the planned closure rate 
324.1   adjustment.  If these facilities are not under common ownership, 
324.2   copies of any contracts, purchase agreements, or other documents 
324.3   establishing a relationship or proposed relationship must be 
324.4   provided; 
324.5      (5) documentation, in a format approved by the 
324.6   commissioner, that all the nursing facilities receiving a 
324.7   planned closure rate adjustment under the plan have accepted 
324.8   joint and several liability for recovery of overpayments under 
324.9   section 256B.0641, subdivision 2, for the facilities designated 
324.10  for closure under the plan; and 
324.11     (6) comments by the affected regional planning and 
324.12  development groups on the facility proposal. 
324.13     (d) The application must address the criteria listed in 
324.14  subdivision 4. 
324.15     Subd. 4.  [CRITERIA FOR REVIEW OF APPLICATION.] In 
324.16  reviewing and approving closure proposals, the commissioner 
324.17  shall consider, but not be limited to, the following criteria: 
324.18     (1) improved quality of care and quality of life for 
324.19  consumers; 
324.20     (2) closure of a nursing facility that has a poor physical 
324.21  plant; 
324.22     (3) the existence of excess nursing facility beds, measured 
324.23  in terms of beds per thousand persons aged 85 or older.  The 
324.24  excess must be measured in reference to: 
324.25     (i) the county in which the facility is located; 
324.26     (ii) the county and all contiguous counties; 
324.27     (iii) the region in which the facility is located; or 
324.28     (iv) the facility's service area; 
324.29  the facility shall indicate in its application the service area 
324.30  it believes is appropriate for this measurement.  A facility in 
324.31  a county that is in the lowest quartile of counties with 
324.32  reference to beds per thousand persons aged 85 or older is not 
324.33  in an area of excess capacity; 
324.34     (4) low-occupancy rates, provided that the unoccupied beds 
324.35  are not the result of a personnel shortage.  In analyzing 
324.36  occupancy rates, the commissioner shall examine waiting lists in 
325.1   the applicant facility and at facilities in the surrounding 
325.2   area, as determined under clause (3); 
325.3      (5) evidence of coordination between the community planning 
325.4   process and the facility application; 
325.5      (6) proposed usage of funds available from a planned 
325.6   closure rate adjustment for care-related purposes; 
325.7      (7) innovative use planned for the closed facility's 
325.8   physical plant; 
325.9      (8) evidence that the proposal serves the interests of the 
325.10  state; and 
325.11     (9) evidence of other factors that affect the viability of 
325.12  the facility, including excessive nursing pool costs. 
325.13     Subd. 5.  [CERTIFICATION.] Upon receipt of an application 
325.14  for planned closure, the commissioner of human services shall 
325.15  provide a copy of the application to the commissioner of 
325.16  health.  The commissioner of health shall certify to the 
325.17  commissioner of human services within 14 days whether the 
325.18  application, if implemented, will satisfy the requirements of 
325.19  section 144A.161.  The commissioner of human services shall 
325.20  reject all applications for which the commissioner of health 
325.21  fails to make the certification required under this subdivision 
325.22  within 14 days. 
325.23     Subd. 6.  [REVIEW AND APPROVAL OF APPLICATIONS.] (a) The 
325.24  commissioner of human services, in consultation with the 
325.25  commissioner of health, shall approve or disapprove an 
325.26  application within 30 days after receiving it. 
325.27     (b) The commissioner shall not approve an application that 
325.28  results in a closure, curtailment, reduction, or change of 
325.29  operations combined with the establishment of new long-term care 
325.30  facilities or services offered in the existing facilities or in 
325.31  new facilities provided by the same corporation, agency, or 
325.32  individual, unless: 
325.33     (1) the employees at the time of the closure, curtailment, 
325.34  reduction, or change of operations are given by seniority the 
325.35  first priority for hiring into positions for which they are 
325.36  qualified in the new facility or service; and 
326.1      (2) the exclusive bargaining representative at the time of 
326.2   the closure, curtailment, reduction, or change of operations is 
326.3   recognized as the exclusive bargaining representative for the 
326.4   new long-term care facilities or services. 
326.5      (c) Approval of a planned closure expires 18 months after 
326.6   approval by the commissioner of human services, unless 
326.7   commencement of closure has begun. 
326.8      (d) The commissioner of human services may change any 
326.9   provision of the application to which the applicant, the 
326.10  regional planning group, and the commissioner agree. 
326.11     Subd. 7.  [PLANNED CLOSURE RATE ADJUSTMENT.] (a) The 
326.12  commissioner of human services shall calculate the amount of the 
326.13  planned closure rate adjustment available under subdivision 3, 
326.14  paragraph (b), for up to 5,140 beds according to clauses (1) to 
326.15  (4): 
326.16     (1) the amount available is the net reduction of nursing 
326.17  facility beds multiplied by $2,080; 
326.18     (2) the total number of beds in the nursing facility or 
326.19  facilities receiving the planned closure rate adjustment must be 
326.20  identified; 
326.21     (3) capacity days are determined by multiplying the number 
326.22  determined under clause (2) by 365; and 
326.23     (4) the planned closure rate adjustment is the amount 
326.24  available in clause (1), divided by capacity days determined 
326.25  under clause (3). 
326.26     (b) A planned closure rate adjustment under this section is 
326.27  effective on the first day of the month following completion of 
326.28  closure of the facility designated for closure in the 
326.29  application and becomes part of the nursing facility's total 
326.30  operating payment rate. 
326.31     (c) Applicants may use the planned closure rate adjustment 
326.32  to allow for a property payment for a new nursing facility or an 
326.33  addition to an existing nursing facility.  Applications approved 
326.34  under this subdivision are exempt from other requirements for 
326.35  moratorium exceptions under section 144A.073, subdivisions 2 and 
326.36  3. 
327.1      (d) Upon the request of a closing facility, the 
327.2   commissioner must allow the facility a closure rate adjustment 
327.3   equal to a 50 percent payment rate increase to reimburse 
327.4   relocation costs or other costs related to facility closure.  
327.5   This rate increase is effective on the date the facility's 
327.6   occupancy decreases to 90 percent of capacity days after the 
327.7   written notice of closure is distributed under section 144A.161, 
327.8   subdivision 5, and shall remain in effect for a period of up to 
327.9   60 days.  The commissioner shall delay the implementation of the 
327.10  planned closure rate adjustments to offset the cost of this rate 
327.11  adjustment. 
327.12     Subd. 8.  [OTHER RATE ADJUSTMENTS.] Facilities subject to 
327.13  this section remain eligible for any applicable rate adjustments 
327.14  provided under section 256B.431, 256B.434, or any other section. 
327.15     Subd. 9.  [COUNTY COSTS.] The commissioner of human 
327.16  services may allocate up to $400 total state and federal funds 
327.17  per nursing facility bed that is closing, within the limits of 
327.18  the appropriation specified for this purpose, to be used for 
327.19  relocation costs incurred by counties for planned closures under 
327.20  this section or resident relocation under section 144A.161.  To 
327.21  be eligible for this allocation, a county in which a nursing 
327.22  facility closes must provide to the commissioner a detailed 
327.23  statement in a form provided by the commissioner of additional 
327.24  costs, not to exceed $400 per bed closed, that are directly 
327.25  incurred related to the county's required role in the relocation 
327.26  process.  
327.27     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
327.28  following final enactment. 
327.29     Sec. 17.  [256B.438] [IMPLEMENTATION OF A CASE MIX SYSTEM 
327.30  FOR NURSING FACILITIES BASED ON THE MINIMUM DATA SET.] 
327.31     Subdivision 1.  [SCOPE.] This section establishes the 
327.32  method and criteria used to determine resident reimbursement 
327.33  classifications based upon the assessments of residents of 
327.34  nursing homes and boarding care homes whose payment rates are 
327.35  established under section 256B.431, 256B.434, or 256B.435.  
327.36  Resident reimbursement classifications shall be established 
328.1   according to the 34 group, resource utilization groups, version 
328.2   III or RUG-III model as described in section 144.0724.  
328.3   Reimbursement classifications established under this section 
328.4   shall be implemented after June 30, 2002, but no later than 
328.5   January 1, 2003. 
328.6      Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
328.7   following terms have the meanings given. 
328.8      (a) [ASSESSMENT REFERENCE DATE.] "Assessment reference 
328.9   date" has the meaning given in section 144.0724, subdivision 2, 
328.10  paragraph (a). 
328.11     (b) [CASE MIX INDEX.] "Case mix index" has the meaning 
328.12  given in section 144.0724, subdivision 2, paragraph (b). 
328.13     (c) [INDEX MAXIMIZATION.] "Index maximization" has the 
328.14  meaning given in section 144.0724, subdivision 2, paragraph (c). 
328.15     (d) [MINIMUM DATA SET.] "Minimum data set" has the meaning 
328.16  given in section 144.0724, subdivision 2, paragraph (d). 
328.17     (e) [REPRESENTATIVE.] "Representative" has the meaning 
328.18  given in section 144.0724, subdivision 2, paragraph (e). 
328.19     (f) [RESOURCE UTILIZATION GROUPS OR RUG.] "Resource 
328.20  utilization groups" or "RUG" has the meaning given in section 
328.21  144.0724, subdivision 2, paragraph (f). 
328.22     Subd. 3.  [CASE MIX INDICES.] (a) The commissioner of human 
328.23  services shall assign a case mix index to each resident class 
328.24  based on the Health Care Financing Administration's staff time 
328.25  measurement study and adjusted for Minnesota-specific wage 
328.26  indices.  The case mix indices assigned to each resident class 
328.27  shall be published in the Minnesota State Register at least 120 
328.28  days prior to the implementation of the 34 group, RUG-III 
328.29  resident classification system. 
328.30     (b) An index maximization approach shall be used to 
328.31  classify residents. 
328.32     (c) After implementation of the revised case mix system, 
328.33  the commissioner of human services may annually rebase case mix 
328.34  indices and base rates using more current data on average wage 
328.35  rates and staff time measurement studies.  This rebasing shall 
328.36  be calculated under subdivision 7, paragraph (b).  The 
329.1   commissioner shall publish in the Minnesota State Register 
329.2   adjusted case mix indices at least 45 days prior to the 
329.3   effective date of the adjusted case mix indices. 
329.4      Subd. 4.  [RESIDENT ASSESSMENT SCHEDULE.] (a) Nursing 
329.5   facilities shall conduct and submit case mix assessments 
329.6   according to the schedule established by the commissioner of 
329.7   health under section 144.0724, subdivisions 4 and 5. 
329.8      (b) The resident reimbursement classifications established 
329.9   under section 144.0724, subdivision 3, shall be effective the 
329.10  day of admission for new admission assessments.  The effective 
329.11  date for significant change assessments shall be the assessment 
329.12  reference date.  The effective date for annual and second 
329.13  quarterly assessments shall be the first day of the month 
329.14  following assessment reference date. 
329.15     Subd. 5.  [NOTICE OF RESIDENT REIMBURSEMENT 
329.16  CLASSIFICATION.] Nursing facilities shall provide notice to a 
329.17  resident of the resident's case mix classification according to 
329.18  procedures established by the commissioner of health under 
329.19  section 144.0724, subdivision 7. 
329.20     Subd. 6.  [RECONSIDERATION OF RESIDENT CLASSIFICATION.] Any 
329.21  request for reconsideration of a resident classification must be 
329.22  made under section 144.0724, subdivision 8. 
329.23     Subd. 7.  [RATE DETERMINATION UPON TRANSITION TO RUG-III 
329.24  PAYMENT RATES.] (a) The commissioner of human services shall 
329.25  determine payment rates at the time of transition to the RUG 
329.26  based payment model in a facility-specific, budget-neutral 
329.27  manner.  The case mix indices as defined in subdivision 3 shall 
329.28  be used to allocate the case mix adjusted component of total 
329.29  payment across all case mix groups.  To transition from the 
329.30  current calculation methodology to the RUG based methodology, 
329.31  the commissioner of health shall report to the commissioner of 
329.32  human services the resident days classified according to the 
329.33  categories defined in subdivision 3 for the 12-month reporting 
329.34  period ending September 30, 2001, for each nursing facility.  
329.35  The commissioner of human services shall use this data to 
329.36  compute the standardized days for the reporting period under the 
330.1   RUG system. 
330.2      (b) The commissioner of human services shall determine the 
330.3   case mix adjusted component of the rate as follows: 
330.4      (1) determine the case mix portion of the 11 case mix rates 
330.5   in effect on June 30, 2002, or the 34 case mix rates in effect 
330.6   on or after June 30, 2003; 
330.7      (2) multiply each amount in clause (1) by the number of 
330.8   resident days assigned to each group for the reporting period 
330.9   ending September 30, 2001, or the most recent year for which 
330.10  data is available; 
330.11     (3) compute the sum of the amounts in clause (2); 
330.12     (4) determine the total RUG standardized days for the 
330.13  reporting period ending September 30, 2001, or the most recent 
330.14  year for which data is available using the new indices 
330.15  calculated under subdivision 3, paragraph (c); 
330.16     (5) divide the amount in clause (3) by the amount in clause 
330.17  (4) which shall be the average case mix adjusted component of 
330.18  the rate under the RUG method; and 
330.19     (6) multiply this average rate by the case mix weight in 
330.20  subdivision 3 for each RUG group. 
330.21     (c) The noncase mix component will be allocated to each RUG 
330.22  group as a constant amount to determine the transition payment 
330.23  rate.  Any other rate adjustments that are effective on or after 
330.24  July 1, 2002, shall be applied to the transition rates 
330.25  determined under this section. 
330.26     Sec. 18.  [256B.439] [LONG-TERM CARE QUALITY PROFILES.] 
330.27     Subdivision 1.  [DEVELOPMENT AND IMPLEMENTATION OF QUALITY 
330.28  PROFILES.] (a) The commissioner of human services shall develop 
330.29  and implement a quality profile system for nursing facilities 
330.30  and, beginning not later than July 1, 2003, other providers of 
330.31  long-term care services.  The system must be developed and 
330.32  implemented to the extent possible without the collection of 
330.33  significant amounts of new data.  The system must not duplicate 
330.34  the requirements of section 256B.5011, 256B.5012, or 256B.5013. 
330.35  The system must be designed to provide information on quality: 
330.36     (1) to consumers and their families to facilitate informed 
331.1   choices of service providers; 
331.2      (2) to providers to enable them to measure the results of 
331.3   their quality improvement efforts and compare quality 
331.4   achievements with other service providers; and 
331.5      (3) to public and private purchasers of long-term care 
331.6   services to enable them to purchase high-quality care. 
331.7      (b) The system must be developed in consultation with the 
331.8   long-term care task force and representatives of consumers, 
331.9   providers, and labor unions.  Within the limits of available 
331.10  appropriations, the commissioner may employ consultants to 
331.11  assist with this project. 
331.12     Subd. 2.  [QUALITY MEASUREMENT TOOLS.] The commissioner of 
331.13  human services shall identify and apply existing quality 
331.14  measurement tools to: 
331.15     (1) emphasize quality of care and its relationship to 
331.16  quality of life; and 
331.17     (2) address the needs of various users of long-term care 
331.18  services, including, but not limited to, short-stay residents, 
331.19  persons with behavioral problems, persons with dementia, and 
331.20  persons who are members of minority groups. 
331.21  The tools must be identified and applied, to the extent 
331.22  possible, without requiring providers to supply information 
331.23  beyond current state and federal requirements. 
331.24     Subd. 3.  [CONSUMER SURVEYS.] Following identification of 
331.25  the quality measurement tool, the commissioner of human services 
331.26  shall conduct surveys of long-term care service consumers to 
331.27  develop quality profiles of providers.  To the extent possible, 
331.28  surveys must be conducted face-to-face by state employees or 
331.29  contractors.  At the discretion of the commissioner, surveys may 
331.30  be conducted by telephone or by provider staff.  Surveys must be 
331.31  conducted periodically to update quality profiles of individual 
331.32  service providers. 
331.33     Subd. 4.  [DISSEMINATION OF QUALITY PROFILES.] By July 1, 
331.34  2002, the commissioner of human services shall implement a 
331.35  system to disseminate the quality profiles developed from 
331.36  consumer surveys using the quality measurement tools.  Profiles 
332.1   must be disseminated to consumers, providers, and purchasers of 
332.2   long-term care services through all feasible printed and 
332.3   electronic outlets.  The commissioner shall conduct a public 
332.4   awareness campaign to inform potential users regarding profile 
332.5   contents and potential uses. 
332.6      Sec. 19.  Minnesota Statutes 2000, section 256B.5012, 
332.7   subdivision 3, is amended to read: 
332.8      Subd. 3.  [PROPERTY PAYMENT RATE.] (a) The property payment 
332.9   rate effective October 1, 2000, is based on the facility's 
332.10  modified property payment rate in effect on September 30, 2000.  
332.11  The modified property payment rate is the actual property 
332.12  payment rate exclusive of the effect of gains or losses on 
332.13  disposal of capital assets or adjustments for excess 
332.14  depreciation claims.  Effective October 1, 2000, a facility 
332.15  minimum property rate of $8.13 shall be applied to all existing 
332.16  ICF/MR facilities.  Facilities with a modified property payment 
332.17  rate effective September 30, 2000, which is below the minimum 
332.18  property rate shall receive an increase effective October 1, 
332.19  2000, equal to the difference between the minimum property 
332.20  payment rate and the modified property payment rate in effect as 
332.21  of September 30, 2000.  Facilities with a modified property 
332.22  payment rate at or above the minimum property payment rate 
332.23  effective September 30, 2000, shall receive the modified 
332.24  property payment rate effective October 1, 2000. 
332.25     (b) Within the limits of appropriations specifically for 
332.26  this purpose, Facility property payment rates shall be increased 
332.27  annually for inflation, effective January 1, 2002.  The increase 
332.28  shall be based on each facility's property payment rate in 
332.29  effect on September 30, 2000.  Modified property payment rates 
332.30  effective September 30, 2000, shall be arrayed from highest to 
332.31  lowest before applying the minimum property payment rate in 
332.32  paragraph (a).  For modified property payment rates at the 90th 
332.33  percentile or above, the annual inflation increase shall be 
332.34  zero.  For modified property payment rates below the 90th 
332.35  percentile but equal to or above the 75th percentile, the annual 
332.36  inflation increase shall be one percent.  For modified property 
333.1   payment rates below the 75th percentile, the annual inflation 
333.2   increase shall be two percent. 
333.3      Sec. 20.  Minnesota Statutes 2000, section 256B.5012, is 
333.4   amended by adding a subdivision to read: 
333.5      Subd. 4.  [ICF/MR RATE INCREASES BEGINNING JULY 1, 2001, 
333.6   AND JULY 1, 2002.] (a) For the rate years beginning July 1, 
333.7   2001, and July 1, 2002, the commissioner shall make available to 
333.8   each facility reimbursed under this section an adjustment to the 
333.9   total operating payment rate of 3.5 percent.  Of this 
333.10  adjustment, 3.0 percentage points must be used to provide an 
333.11  employee wage increase as provided under paragraph (b) and 0.5 
333.12  percentage points must be used for operating costs. 
333.13     (b) The adjustment under this paragraph must be used to 
333.14  increase the wages of all employees except administrative and 
333.15  central office employees and to pay associated costs for FICA, 
333.16  the Medicare tax, workers' compensation premiums, and federal 
333.17  and state unemployment insurance, provided that this increase 
333.18  must be used only for wage increases implemented on or after the 
333.19  first day of the rate year and must not be used for wage 
333.20  increases implemented prior to that date. 
333.21     (c) For each facility, the commissioner shall make 
333.22  available an adjustment using the percentage specified in 
333.23  paragraph (a) multiplied by the total payment rate, excluding 
333.24  the property-related payment rate, in effect on the preceding 
333.25  June 30.  The total payment rate shall include the adjustment 
333.26  provided in section 256B.501, subdivision 12. 
333.27     (d) A facility whose payment rates are governed by closure 
333.28  agreements, receivership agreements, or Minnesota Rules, part 
333.29  9553.0075, is not eligible for an adjustment otherwise granted 
333.30  under this subdivision.  
333.31     (e) A facility may apply for the wage-related payment rate 
333.32  adjustment provided under paragraph (b).  The application must 
333.33  be made to the commissioner and contain a plan by which the 
333.34  facility will distribute the wage-related portion of the payment 
333.35  rate adjustment to employees of the facility.  For facilities in 
333.36  which the employees are represented by an exclusive bargaining 
334.1   representative, an agreement negotiated and agreed to by the 
334.2   employer and the exclusive bargaining representative constitutes 
334.3   the plan.  A negotiated agreement may constitute the plan only 
334.4   if the agreement is finalized after the date of enactment of all 
334.5   rate increases for the rate year.  The commissioner shall review 
334.6   the plan to ensure that the payment rate adjustment per diem is 
334.7   used as provided in this subdivision.  To be eligible, a 
334.8   facility must submit its plan by March 31, 2002, and March 31, 
334.9   2003, respectively.  If a facility's plan is effective for its 
334.10  employees after the first day of the applicable rate year that 
334.11  the funds are available, the payment rate adjustment per diem is 
334.12  effective the same date as its plan. 
334.13     (f) A copy of the approved distribution plan must be made 
334.14  available to all employees by giving each employee a copy or by 
334.15  posting it in an area of the facility to which all employees 
334.16  have access.  If an employee does not receive the wage 
334.17  adjustment described in the facility's approved plan and is 
334.18  unable to resolve the problem with the facility's management or 
334.19  through the employee's union representative, the employee may 
334.20  contact the commissioner at an address or telephone number 
334.21  provided by the commissioner and included in the approved plan. 
334.22     Sec. 21.  Minnesota Statutes 2000, section 626.557, 
334.23  subdivision 12b, is amended to read: 
334.24     Subd. 12b.  [DATA MANAGEMENT.] (a)  [COUNTY DATA.] In 
334.25  performing any of the duties of this section as a lead agency, 
334.26  the county social service agency shall maintain appropriate 
334.27  records.  Data collected by the county social service agency 
334.28  under this section are welfare data under section 13.46.  
334.29  Notwithstanding section 13.46, subdivision 1, paragraph (a), 
334.30  data under this paragraph that are inactive investigative data 
334.31  on an individual who is a vendor of services are private data on 
334.32  individuals, as defined in section 13.02.  The identity of the 
334.33  reporter may only be disclosed as provided in paragraph (c). 
334.34     Data maintained by the common entry point are confidential 
334.35  data on individuals or protected nonpublic data as defined in 
334.36  section 13.02.  Notwithstanding section 138.163, the common 
335.1   entry point shall destroy data three calendar years after date 
335.2   of receipt. 
335.3      (b)  [LEAD AGENCY DATA.] The commissioners of health and 
335.4   human services shall prepare an investigation memorandum for 
335.5   each report alleging maltreatment investigated under this 
335.6   section.  During an investigation by the commissioner of health 
335.7   or the commissioner of human services, data collected under this 
335.8   section are confidential data on individuals or protected 
335.9   nonpublic data as defined in section 13.02.  Upon completion of 
335.10  the investigation, the data are classified as provided in 
335.11  clauses (1) to (3) and paragraph (c). 
335.12     (1) The investigation memorandum must contain the following 
335.13  data, which are public: 
335.14     (i) the name of the facility investigated; 
335.15     (ii) a statement of the nature of the alleged maltreatment; 
335.16     (iii) pertinent information obtained from medical or other 
335.17  records reviewed; 
335.18     (iv) the identity of the investigator; 
335.19     (v) a summary of the investigation's findings; 
335.20     (vi) statement of whether the report was found to be 
335.21  substantiated, inconclusive, false, or that no determination 
335.22  will be made; 
335.23     (vii) a statement of any action taken by the facility; 
335.24     (viii) a statement of any action taken by the lead agency; 
335.25  and 
335.26     (ix) when a lead agency's determination has substantiated 
335.27  maltreatment, a statement of whether an individual, individuals, 
335.28  or a facility were responsible for the substantiated 
335.29  maltreatment, if known. 
335.30     The investigation memorandum must be written in a manner 
335.31  which protects the identity of the reporter and of the 
335.32  vulnerable adult and may not contain the names or, to the extent 
335.33  possible, data on individuals or private data listed in clause 
335.34  (2). 
335.35     (2) Data on individuals collected and maintained in the 
335.36  investigation memorandum are private data, including: 
336.1      (i) the name of the vulnerable adult; 
336.2      (ii) the identity of the individual alleged to be the 
336.3   perpetrator; 
336.4      (iii) the identity of the individual substantiated as the 
336.5   perpetrator; and 
336.6      (iv) the identity of all individuals interviewed as part of 
336.7   the investigation. 
336.8      (3) Other data on individuals maintained as part of an 
336.9   investigation under this section are private data on individuals 
336.10  upon completion of the investigation. 
336.11     (c)  [IDENTITY OF REPORTER.] The subject of the report may 
336.12  compel disclosure of the name of the reporter only with the 
336.13  consent of the reporter or upon a written finding by a court 
336.14  that the report was false and there is evidence that the report 
336.15  was made in bad faith.  This subdivision does not alter 
336.16  disclosure responsibilities or obligations under the rules of 
336.17  criminal procedure, except that where the identity of the 
336.18  reporter is relevant to a criminal prosecution, the district 
336.19  court shall do an in-camera review prior to determining whether 
336.20  to order disclosure of the identity of the reporter. 
336.21     (d)  [DESTRUCTION OF DATA.] Notwithstanding section 
336.22  138.163, data maintained under this section by the commissioners 
336.23  of health and human services must be destroyed under the 
336.24  following schedule: 
336.25     (1) data from reports determined to be false, two years 
336.26  after the finding was made; 
336.27     (2) data from reports determined to be inconclusive, four 
336.28  years after the finding was made; 
336.29     (3) data from reports determined to be substantiated, seven 
336.30  years after the finding was made; and 
336.31     (4) data from reports which were not investigated by a lead 
336.32  agency and for which there is no final disposition, two years 
336.33  from the date of the report. 
336.34     (e)  [SUMMARY OF REPORTS.] The commissioners of health and 
336.35  human services shall each annually prepare a summary of report 
336.36  to the legislature and the governor on the number and type of 
337.1   reports of alleged maltreatment involving licensed facilities 
337.2   reported under this section, the number of those requiring 
337.3   investigation under this section, and the resolution of those 
337.4   investigations.  The report shall identify: 
337.5      (1) whether and where backlogs of cases result in a failure 
337.6   to conform with statutory time frames; 
337.7      (2) where adequate coverage requires additional 
337.8   appropriations and staffing; and 
337.9      (3) any other trends that affect the safety of vulnerable 
337.10  adults. 
337.11     (f)  [RECORD RETENTION POLICY.] Each lead agency must have 
337.12  a record retention policy. 
337.13     (g)  [EXCHANGE OF INFORMATION.] Lead agencies, prosecuting 
337.14  authorities, and law enforcement agencies may exchange not 
337.15  public data, as defined in section 13.02, if the agency or 
337.16  authority requesting the data determines that the data are 
337.17  pertinent and necessary to the requesting agency in initiating, 
337.18  furthering, or completing an investigation under this section.  
337.19  Data collected under this section must be made available to 
337.20  prosecuting authorities and law enforcement officials, local 
337.21  county agencies, and licensing agencies investigating the 
337.22  alleged maltreatment under this section.  The lead agency shall 
337.23  exchange not public data with the vulnerable adult maltreatment 
337.24  review panel established in section 256.021 if the data are 
337.25  pertinent and necessary for a review requested under that 
337.26  section.  Upon completion of the review, not public data 
337.27  received by the review panel must be returned to the lead agency.
337.28     (h)  [COMPLETION TIME.] Each lead agency shall keep records 
337.29  of the length of time it takes to complete its investigations. 
337.30     (i)  [NOTIFICATION OF OTHER AFFECTED PARTIES.] A lead 
337.31  agency may notify other affected parties and their authorized 
337.32  representative if the agency has reason to believe maltreatment 
337.33  has occurred and determines the information will safeguard the 
337.34  well-being of the affected parties or dispel widespread rumor or 
337.35  unrest in the affected facility. 
337.36     (j)  [FEDERAL REQUIREMENTS.] Under any notification 
338.1   provision of this section, where federal law specifically 
338.2   prohibits the disclosure of patient identifying information, a 
338.3   lead agency may not provide any notice unless the vulnerable 
338.4   adult has consented to disclosure in a manner which conforms to 
338.5   federal requirements. 
338.6      Sec. 22.  Laws 1999, chapter 245, article 3, section 45, as 
338.7   amended by Laws 2000, chapter 312, section 3, is amended to read:
338.8      Sec. 45.  [STATE LICENSURE CONFLICTS WITH FEDERAL 
338.9   REGULATIONS.] 
338.10     (a) Notwithstanding the provisions of Minnesota Rules, part 
338.11  4658.0520, an incontinent resident must be checked according to 
338.12  a specific time interval written in the resident's care plan.  
338.13  The resident's attending physician must authorize in writing any 
338.14  interval longer than two hours unless the resident, if 
338.15  competent, or a family member or legally appointed conservator, 
338.16  guardian, or health care agent of a resident who is not 
338.17  competent, agrees in writing to waive physician involvement in 
338.18  determining this interval. 
338.19     (b) This section expires July 1, 2001 2003. 
338.20     Sec. 23.  Laws 2000, chapter 364, section 2, is amended to 
338.21  read: 
338.22     Sec. 2.  [MORATORIUM EXCEPTION PROCESS.] 
338.23     For fiscal year the biennium beginning July 1, 2000 2001, 
338.24  when approving nursing home moratorium exception projects under 
338.25  Minnesota Statutes, section 144A.073, the commissioner of health 
338.26  shall give priority to proposals a proposal to build a 
338.27  replacement facilities facility in the city of Anoka or within 
338.28  ten miles of the city of Anoka. 
338.29     Sec. 24.  [DEVELOPMENT OF NEW NURSING FACILITY 
338.30  REIMBURSEMENT SYSTEM.] 
338.31     (a) The commissioner of human services shall develop and 
338.32  report to the legislature by January 15, 2003, a system to 
338.33  replace the current nursing facility reimbursement system 
338.34  established under Minnesota Statutes, sections 256B.431, 
338.35  256B.434, and 256B.435. 
338.36     (b) The system must be developed in consultation with the 
339.1   long-term care task force and with representatives of consumers, 
339.2   providers, and labor unions.  Within the limits of available 
339.3   appropriations, the commissioner may employ consultants to 
339.4   assist with this project. 
339.5      (c) The new reimbursement system must: 
339.6      (1) provide incentives to enhance quality of life and 
339.7   quality of care; 
339.8      (2) recognize cost differences in the care of different 
339.9   types of populations, including subacute care and dementia care; 
339.10     (3) establish rates that are sufficient without being 
339.11  excessive; 
339.12     (4) be affordable for the state and for private-pay 
339.13  residents; 
339.14     (5) be sensitive to changing conditions in the long-term 
339.15  care environment; 
339.16     (6) avoid creating access problems related to insufficient 
339.17  funding; 
339.18     (7) allow providers maximum flexibility in their business 
339.19  operations; and 
339.20     (8) recognize the need for capital investment to improve 
339.21  physical plants. 
339.22     (d) Notwithstanding Minnesota Statutes, section 256B.435, 
339.23  the commissioner must not implement a performance-based 
339.24  contracting system for nursing facilities prior to July 1, 2003. 
339.25  The commissioner shall continue to reimburse nursing facilities 
339.26  under Minnesota Statutes, section 256B.431 or 256B.434, until 
339.27  otherwise directed by law. 
339.28     Sec. 25.  [MINIMUM STAFFING STANDARDS REPORT.] 
339.29     By January 15, 2002, the commissioner of health and the 
339.30  commissioner of human services shall report to the legislature 
339.31  on whether they should translate the minimum nurse staffing 
339.32  requirement in Minnesota Statutes, section 144A.04, subdivision 
339.33  7, paragraph (a), upon the transition to the RUG-III 
339.34  classification system, or whether they should establish 
339.35  different time-based standards, and how to accomplish either. 
339.36     Sec. 26.  [TIME MOTION STUDY.] 
340.1      (a) The commissioner of human services shall conduct a time 
340.2   motion study to determine the amount of time devoted to the care 
340.3   of high-need nursing facility residents, including, but not 
340.4   limited to, persons with Alzheimer's disease and other 
340.5   dementias, persons with multiple sclerosis, and persons with 
340.6   mental illness. 
340.7      (b) The commissioner shall report the results of the study 
340.8   to the legislature by January 15, 2003, with an analysis of 
340.9   whether these costs are adequately reimbursed under the current 
340.10  reimbursement system and with recommendations for adjusting 
340.11  nursing facility reimbursement rates as necessary to account for 
340.12  these costs. 
340.13     Sec. 27.  [PROVIDER RATE INCREASES.] 
340.14     (a) The commissioner of human services shall increase 
340.15  reimbursement rates by 3.5 percent each year of the biennium for 
340.16  the providers listed in paragraph (b).  The increases are 
340.17  effective for services rendered on or after July 1 of each year. 
340.18     (b) The rate increases described in this section must be 
340.19  provided to home and community-based waivered services for: 
340.20     (1) persons with mental retardation or related conditions 
340.21  under Minnesota Statutes, section 256B.501; 
340.22     (2) home and community-based waivered services for the 
340.23  elderly under Minnesota Statutes, section 256B.0915; 
340.24     (3) waivered services under community alternatives for 
340.25  disabled individuals under Minnesota Statutes, section 256B.49; 
340.26     (4) community alternative care waivered services under 
340.27  Minnesota Statutes, section 256B.49; 
340.28     (5) traumatic brain injury waivered services under 
340.29  Minnesota Statutes, section 256B.49; 
340.30     (6) nursing services and home health services under 
340.31  Minnesota Statutes, section 256B.0625, subdivision 6a; 
340.32     (7) personal care services and nursing supervision of 
340.33  personal care services under Minnesota Statutes, section 
340.34  256B.0625, subdivision 19a; 
340.35     (8) private duty nursing services under Minnesota Statutes, 
340.36  section 256B.0625, subdivision 7; 
341.1      (9) day training and habilitation services for adults with 
341.2   mental retardation or related conditions under Minnesota 
341.3   Statutes, sections 252.40 to 252.46; 
341.4      (10) alternative care services under Minnesota Statutes, 
341.5   section 256B.0913; 
341.6      (11) adult residential program grants under Minnesota 
341.7   Rules, parts 9535.2000 to 9535.3000; 
341.8      (12) adult and family community support grants under 
341.9   Minnesota Rules, parts 9535.1700 to 9535.1760; 
341.10     (13) the group residential housing supplementary service 
341.11  rate under Minnesota Statutes, section 256I.05, subdivision 1a; 
341.12     (14) adult mental health integrated fund grants under 
341.13  Minnesota Statutes, section 245.4661; 
341.14     (15) semi-independent living services under Minnesota 
341.15  Statutes, section 252.275, including SILS funding under county 
341.16  social services grants formerly funded under Minnesota Statutes, 
341.17  chapter 256I; 
341.18     (16) community support services for deaf and 
341.19  hard-of-hearing adults with mental illness who use or wish to 
341.20  use sign language as their primary means of communication; and 
341.21     (17) living skills training programs for persons with 
341.22  intractable epilepsy who need assistance in the transition to 
341.23  independent living. 
341.24     (c) Providers that receive a rate increase under this 
341.25  section shall use 0.5 percentage points of the additional 
341.26  revenue for operating cost increases and 3.0 percentage points 
341.27  of the additional revenue to increase wages for all employees 
341.28  other than the administrator and central office staff and to pay 
341.29  associated costs for FICA, the Medicare tax, workers' 
341.30  compensation premiums, and federal and state unemployment 
341.31  insurance.  For public employees, the portion of this increase 
341.32  reserved to increase wages for certain staff is available and 
341.33  pay rates shall be increased only to the extent that they comply 
341.34  with laws governing public employees collective bargaining.  
341.35  Money received by a provider for pay increases under this 
341.36  section must be used only for wage increases implemented on or 
342.1   after the first day of the state fiscal year in which the 
342.2   increase is available and must not be used for wage increases 
342.3   implemented prior to that date. 
342.4      (d) A copy of the provider's plan for complying with 
342.5   paragraph (c) must be made available to all employees by giving 
342.6   each employee a copy or by posting it in an area of the 
342.7   provider's operation to which all employees have access.  If an 
342.8   employee does not receive the wage adjustment described in the 
342.9   plan and is unable to resolve the problem with the provider, the 
342.10  employee may contact the employee's union representative.  If 
342.11  the employee is not covered by a collective bargaining 
342.12  agreement, the employee may contact the commissioner at a phone 
342.13  number provided by the commissioner and included in the 
342.14  provider's plan. 
342.15     Sec. 28.  [REGULATORY FLEXIBILITY.] 
342.16     (a) By July 1, 2001, the commissioners of health and human 
342.17  services shall: 
342.18     (1) develop a summary of federal nursing facility and 
342.19  community long-term care regulations that hamper state 
342.20  flexibility and place burdens on the goal of achieving 
342.21  high-quality care and optimum outcomes for consumers of 
342.22  services; and 
342.23     (2) share this summary with the legislature, other states, 
342.24  national groups that advocate for state interests with Congress, 
342.25  and the Minnesota congressional delegation. 
342.26     (b) The commissioners shall conduct ongoing follow-up with 
342.27  the entities to which this summary is provided and with the 
342.28  health care financing administration to achieve maximum 
342.29  regulatory flexibility, including the possibility of pilot 
342.30  projects to demonstrate regulatory flexibility on less than a 
342.31  statewide basis. 
342.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
342.33  following final enactment. 
342.34     Sec. 29.  [REPORT.] 
342.35     By January 15, 2003, the commissioner of health and the 
342.36  commissioner of human services shall report to the senate health 
343.1   and family security committee and the house health and human 
343.2   services policy committee on the number of closures that have 
343.3   taken place under this article, alternatives to nursing facility 
343.4   care that have been developed, any problems with access to 
343.5   long-term care services that have resulted, and any 
343.6   recommendations for continuation of the regional long-term care 
343.7   planning process and the closure process after June 30, 2003. 
343.8      Sec. 30.  [REVISOR INSTRUCTION.] 
343.9      The revisor of statutes shall delete any reference to 
343.10  Minnesota Statutes, section 144A.16, in Minnesota Statutes and 
343.11  Minnesota Rules. 
343.12     Sec. 31.  [REPEALER.] 
343.13     (a) Minnesota Statutes 2000, sections 144A.16; and 
343.14  256B.434, subdivision 5, are repealed. 
343.15     (b) Minnesota Rules, parts 4655.6810; 4655.6820; 4655.6830; 
343.16  4658.1600; 4658.1605; 4658.1610; 4658.1690; 9546.0010; 
343.17  9546.0020; 9546.0030; 9546.0040; 9546.0050; and 9546.0060, are 
343.18  repealed. 
343.19                             ARTICLE 6 
343.20                WORKFORCE RECRUITMENT AND RETENTION 
343.21     Section 1.  Minnesota Statutes 2000, section 116L.11, 
343.22  subdivision 4, is amended to read: 
343.23     Subd. 4.  [QUALIFYING CONSORTIUM.] "Qualifying consortium" 
343.24  means an entity that may include includes a public or private 
343.25  institution of higher education, work force center, county, and 
343.26  one or more eligible employers, but must include a public or 
343.27  private institution of higher education and one or more eligible 
343.28  employers employer. 
343.29     Sec. 2.  Minnesota Statutes 2000, section 116L.12, 
343.30  subdivision 4, is amended to read: 
343.31     Subd. 4.  [GRANTS.] Within the limits of available 
343.32  appropriations, the board shall make grants not to exceed 
343.33  $400,000 each to qualifying consortia to operate local, 
343.34  regional, or statewide training and retention programs.  Grants 
343.35  may be made from TANF funds, general fund appropriations, and 
343.36  any other funding sources available to the board, provided the 
344.1   requirements of those funding sources are satisfied.  Grant 
344.2   awards must establish specific, measurable outcomes and 
344.3   timelines for achieving those outcomes. 
344.4      Sec. 3.  Minnesota Statutes 2000, section 116L.12, 
344.5   subdivision 5, is amended to read: 
344.6      Subd. 5.  [LOCAL MATCH REQUIREMENTS.] A consortium must 
344.7   provide at least a 50 percent match from local resources for 
344.8   money appropriated under this section.  The local match 
344.9   requirement must be satisfied on an overall program basis but 
344.10  need not be satisfied for each particular client.  The local 
344.11  match requirement may be reduced for consortia that include a 
344.12  relatively large number of small employers whose financial 
344.13  contribution has been reduced in accordance with section 116L.15.
344.14  In-kind services and expenditures under section 116L.13, 
344.15  subdivision 2, may be used to meet this local match 
344.16  requirement.  The grant application must specify the financial 
344.17  contribution from each member of the consortium satisfy the 
344.18  match requirements established in section 116L.02, paragraph (a).
344.19     Sec. 4.  Minnesota Statutes 2000, section 116L.13, 
344.20  subdivision 1, is amended to read: 
344.21     Subdivision 1.  [MARKETING AND RECRUITMENT.] A qualifying 
344.22  consortium must implement a marketing and outreach strategy to 
344.23  recruit into the health care and human services fields persons 
344.24  from one or more of the potential employee target groups.  
344.25  Recruitment strategies must include: 
344.26     (1) a screening process to evaluate whether potential 
344.27  employees may be disqualified as the result of a required 
344.28  background check or are otherwise unlikely to succeed in the 
344.29  position for which they are being recruited; and 
344.30     (2) a process for modifying course work to meet the 
344.31  training needs of non-English-speaking persons, when appropriate.
344.32     Sec. 5.  [116L.146] [EXPEDITED GRANT PROCESS.] 
344.33     (a) The board may authorize grants not to exceed $50,000 
344.34  each through an expedited grant approval process to: 
344.35     (1) eligible employers to provide training programs for up 
344.36  to 50 workers; or 
345.1      (2) a public or private institution of higher education to: 
345.2      (i) do predevelopment or curriculum development for 
345.3   training programs prior to submission for program funding under 
345.4   section 116L.12; 
345.5      (ii) convert an existing curriculum for distance learning 
345.6   through interactive television or other communication methods; 
345.7   or 
345.8      (iii) enable a training program to be offered when it would 
345.9   otherwise be canceled due to an enrollment shortfall of one or 
345.10  two students when the program is offered in a health-related 
345.11  field with a documented worker shortage and is part of a 
345.12  training program not exceeding two years in length. 
345.13     (b) The board shall develop application procedures and 
345.14  evaluation policies for grants made under this section. 
345.15     Sec. 6.  [256.956] [LONG-TERM CARE EMPLOYEE HEALTH 
345.16  INSURANCE ASSISTANCE PROGRAM.] 
345.17     Subdivision 1.  [DEFINITIONS.] (a) For the purpose of this 
345.18  section, the definitions have the meanings given them.  
345.19     (b) "Commissioner" means the commissioner of human services.
345.20     (c) "Dependent" means an unmarried child who is under the 
345.21  age of 19 years.  For the purpose of this definition, a 
345.22  dependent includes a child for whom an eligible employee or an 
345.23  eligible employee's spouse has been appointed legal guardian or 
345.24  an adopted child as defined under section 62A.27.  A dependent 
345.25  does not include: 
345.26     (1) a child of an eligible employee who is eligible for 
345.27  health coverage through medical assistance without a spenddown 
345.28  or through an employer-subsidized health plan where an employer 
345.29  other than the employer of the eligible employee pays at least 
345.30  50 percent of the cost of coverage for the child; or 
345.31     (2) a child of an eligible employee who is excluded from 
345.32  coverage under title XXI of the Social Security Act, United 
345.33  States Code, title 42, section 1397aa et seq. 
345.34     (d) "Eligible employee" means an individual employed for at 
345.35  least 20 hours by an employer in a position other than as an 
345.36  administrator or in the central office.  An "employee" does not 
346.1   include an individual who:  
346.2      (1) works on a temporary or substitute basis; 
346.3      (2) is hired as an independent contractor; or 
346.4      (3) is a state employee.  
346.5      (e) "Employer" means any of the following: 
346.6      (1) a nursing facility reimbursed under section 256B.431 or 
346.7   256B.434; 
346.8      (2) a facility reimbursed under sections 256B.501 and 
346.9   256B.5011 and Laws 1993, First Special Session chapter 1, 
346.10  article 4, section 11; or 
346.11     (3) a provider who meets the following requirements: 
346.12     (i) provides home and community-based waivered services for 
346.13  persons with mental retardation or related conditions under 
346.14  section 256B.501; home and community-based waivered services for 
346.15  the elderly under section 256B.0915; waivered services under 
346.16  community alternatives for disabled individuals under section 
346.17  256B.49; community alternative care waivered services under 
346.18  section 256B.49; traumatic brain injury waivered services under 
346.19  section 256B.49; nursing services and home health services under 
346.20  section 256B.0625, subdivision 6a; personal care services and 
346.21  nursing supervision of personal care services under section 
346.22  256B.0625, subdivision 19a; private duty nursing services under 
346.23  section 256B.0625, subdivision 7; day training and habilitation 
346.24  services for adults with mental retardation or related 
346.25  conditions under sections 252.40 to 252.46; alternative care 
346.26  services under section 256B.0913; adult residential program 
346.27  grants under Minnesota Rules, parts 9535.2000 to 9535.3000; 
346.28  adult and family community support grants under Minnesota Rules, 
346.29  parts 9535.1700 to 9535.1760; semi-independent living services 
346.30  under section 252.275, including SILS funding under county 
346.31  social services grants formerly funded under chapter 256I; 
346.32  community support services for deaf and hard-of-hearing adults 
346.33  with mental illness who use or wish to use sign language as 
346.34  their primary means of communication; or living skills training 
346.35  programs for persons with intractable epilepsy who need 
346.36  assistance in the transition to independent living; and 
347.1      (ii) the revenue received by the provider from medical 
347.2   assistance that equals or exceeds 20 percent of the total 
347.3   revenue received by the provider from all payment sources.  
347.4   Employer includes both for-profit and nonprofit entities. 
347.5      (f) "Program" means the long-term care employee health 
347.6   insurance assistance program.  
347.7      Subd. 2.  [PROGRAM.] (a) The commissioner shall establish 
347.8   and administer the long-term care employee health insurance 
347.9   assistance program to provide the advantages of pooling for the 
347.10  purchase of health coverage for long-term care employers.  
347.11     (b) The commissioner shall solicit bids from health 
347.12  maintenance organizations licensed under chapter 62D to provide 
347.13  health coverage to the dependents of eligible employees.  Health 
347.14  maintenance organizations shall submit proposals in good faith 
347.15  that meet the requirements of the request for proposal from the 
347.16  commissioner, provided that the requirements can reasonably be 
347.17  met by the health maintenance organization. Coverage shall be 
347.18  offered on a guaranteed-issue and renewal basis.  No health 
347.19  maintenance organization is required to provide coverage to an 
347.20  eligible employee's dependent who does not reside within the 
347.21  health maintenance organization's approved service area.  
347.22     (c) The commissioner shall, consistent with the provisions 
347.23  of this section, determine coverage options, premium 
347.24  arrangements, contractual arrangements, and all other matters 
347.25  necessary to administer the program.  
347.26     (d) The commissioner may extend the program to include 
347.27  coverage for the eligible employee and noneligible employee.  
347.28  The cost of coverage for these employees shall be the 
347.29  responsibility of the employer or employee.  In determining 
347.30  whether to extend the program to include coverage for the 
347.31  employees, the commissioner shall evaluate the feasibility of 
347.32  the state establishing a stop-loss insurance fund for the 
347.33  purpose of lowering the cost of premiums for the employees.  
347.34     (e) The commissioner shall consult with representatives of 
347.35  the long-term care industry on issues related to the 
347.36  administration of the program. 
348.1      Subd. 3.  [EMPLOYER REQUIREMENTS.] (a) All employers may 
348.2   participate in the program subject to the requirements of this 
348.3   section.  The commissioner shall establish procedures for an 
348.4   employer to apply for coverage through this program.  These 
348.5   procedures may include requiring eligible employees to provide 
348.6   relevant financial information to determine the eligibility of 
348.7   their dependents.  
348.8      (b) A participating employer must offer dependent coverage 
348.9   to all employees.  For purposes of this paragraph, dependent 
348.10  includes the children excluded under subdivision 1, paragraph 
348.11  (c). 
348.12     (c) The participating employer must provide to the 
348.13  commissioner any employee information deemed necessary by the 
348.14  commissioner to determine eligibility and premium payments and 
348.15  must notify the commissioner upon a change in an employee's or 
348.16  an employee's dependent's eligibility.  
348.17     (d) The initial term of the employer's coverage must be for 
348.18  at least one year but may be made automatically renewable from 
348.19  term to term in the absence of notice of termination by either 
348.20  the employer or the commissioner.  
348.21     Subd. 4.  [INDIVIDUAL ELIGIBILITY.] (a) The commissioner 
348.22  may require a probationary period for new employees of no more 
348.23  than 90 days before the dependents of a new employee become 
348.24  eligible for coverage through the program. 
348.25     (b) A participating employer may elect to offer coverage 
348.26  through the program to: 
348.27     (1) the eligible and noneligible employees, if the program 
348.28  is extended by the commissioner to include these individuals; 
348.29     (2) children of eligible and noneligible employees who are 
348.30  under the age of 25 years and who are full-time students; and 
348.31     (3) the spouses of eligible and noneligible employees. 
348.32  The cost of coverage for the individuals described in this 
348.33  paragraph, the dependents of noneligible employees, and any 
348.34  child of an eligible or noneligible employee who is not 
348.35  considered a dependent in accordance with subdivision 1, 
348.36  paragraph (c), shall be the responsibility of the employer or 
349.1   employee. 
349.2      (c) The commissioner may require a certain percentage of 
349.3   participation of the individuals described in paragraph (b) 
349.4   before coverage can be offered through the program. 
349.5      Subd. 5.  [COVERAGE.] (a) The health plan offered must meet 
349.6   all applicable requirements of chapters 62A and 62D and sections 
349.7   62J.71 to 62J.73; 62M.01 to 62M.16; 62Q.1055; 62Q.106; 62Q.12; 
349.8   62Q.135; 62Q.14; 62Q.145; 62Q.19; 62Q.23; 62Q.43; 62Q.47; 62Q.52 
349.9   to 62Q.58; and 62Q.68 to 62Q.73.  
349.10     (b) The health plan offered must meet all underwriting 
349.11  requirements of chapter 62L and must provide periodic open 
349.12  enrollments for eligible employees where a choice in coverage 
349.13  exists. 
349.14     (c) The commissioner shall establish the benefits to be 
349.15  provided under this program in accordance with the following: 
349.16     (1) the benefits provided must comply with title XXI of the 
349.17  Social Security Act, United States Code, title 42, section 
349.18  1397aa et seq., and be at least equivalent to the lowest 
349.19  benchmark allowable under title XXI; 
349.20     (2) preventive and restorative dental services must be 
349.21  included; and 
349.22     (3) except for a $20 copay per visit for emergency care, 
349.23  there shall be no deductibles, copayments, or coinsurance 
349.24  requirements. 
349.25     (d) The health plan requirements described in paragraph (c) 
349.26  apply only to coverage offered to the dependents of eligible 
349.27  employees.  
349.28     Subd. 6.  [PREMIUMS.] (a) The commissioner shall determine 
349.29  premium rates and rating methods for the coverage offered 
349.30  through the program.  
349.31     (b) The commissioner shall pay the premiums for the 
349.32  dependents of eligible employees directly to the health 
349.33  maintenance organization.  
349.34     (c) Payment of any remaining premiums must be collected by 
349.35  the participating employer and paid directly to the health 
349.36  maintenance organization. 
350.1      (d) Any premiums paid by the state under this section are 
350.2   not subject to taxes or surcharges imposed under chapter 297I, 
350.3   chapter 295, or section 256.9657 and shall be excluded when 
350.4   determining a health maintenance organization's total premium 
350.5   under section 62E.11.  
350.6      <b>[EFFECTIVE DATE.]</b> This section is effective January 15, 
350.7   2003, or upon federal approval of a federal waiver to receive 
350.8   enhanced matching funds under the state's children's health 
350.9   insurance program, whichever occurs latest. 
350.10     Sec. 7.  Minnesota Statutes 2000, section 256B.431, is 
350.11  amended by adding a subdivision to read: 
350.12     Subd. 33.  [EMPLOYEE SCHOLARSHIP COSTS AND TRAINING IN 
350.13  ENGLISH AS A SECOND LANGUAGE.] (a) For the rate year beginning 
350.14  July 1, 2001, the commissioner shall provide to each nursing 
350.15  facility reimbursed under this section, section 256B.434, or any 
350.16  other section an adjustment of 25 cents to the total operating 
350.17  payment rate to be used: 
350.18     (1) for employee scholarships that satisfy the following 
350.19  requirements: 
350.20     (i) scholarships are available to all employees who work an 
350.21  average of at least 20 hours per week at the facility except the 
350.22  administrator, department supervisors, registered nurses, and 
350.23  licensed practical nurses; and 
350.24     (ii) the course of study is expected to lead to employment 
350.25  in a health-related career, including medical care interpreter 
350.26  services and social work; and 
350.27     (2) to provide job-related training on the job site in 
350.28  English as a second language. 
350.29     (b) A facility receiving a rate adjustment under this 
350.30  subdivision must report to the commissioner on a form supplied 
350.31  by the commissioner the following information:  the amount 
350.32  received from this rate adjustment; the amount used for training 
350.33  in English as a second language; the number of persons receiving 
350.34  the training; the name of the person or entity providing the 
350.35  training; and for each scholarship recipient, the name of the 
350.36  recipient, the amount awarded, the educational institution 
351.1   attended, the nature of the educational program, and the program 
351.2   completion date. 
351.3      (c) Amounts spent by a facility for scholarships or for 
351.4   training in English as a second language that satisfy the 
351.5   requirements of this subdivision shall be included in the 
351.6   facility's total payment rates for the purposes of determining 
351.7   future rates under this section, section 256B.434, or any other 
351.8   section. 
351.9      Sec. 8.  Minnesota Statutes 2000, section 256B.5012, is 
351.10  amended by adding a subdivision to read: 
351.11     Subd. 5.  [EMPLOYEE SCHOLARSHIP COSTS.] (a) For the rate 
351.12  year beginning July 1, 2001, the commissioner shall provide to 
351.13  each facility reimbursed under this section an adjustment of 25 
351.14  cents to the total payment rate to be used: 
351.15     (1) for employee scholarships that satisfy the following 
351.16  requirements: 
351.17     (i) scholarships are available to all employees who work an 
351.18  average of at least 20 hours per week at the facility except the 
351.19  administrator, department supervisors, registered nurses, and 
351.20  licensed practical nurses; and 
351.21     (ii) the course of study is expected to lead to employment 
351.22  in a health-related career, including medical care interpreter 
351.23  services and social work; and 
351.24     (2) to provide job-related training on the job site in 
351.25  English as a second language. 
351.26     (b) A facility receiving a rate adjustment under this 
351.27  subdivision must report to the commissioner on a form supplied 
351.28  by the commissioner the following information:  the amount 
351.29  received from this rate adjustment; the amount used for training 
351.30  in English as a second language; the number of persons receiving 
351.31  the training; the name of the person or entity providing the 
351.32  training; and for each scholarship recipient, the name of the 
351.33  recipient, the amount awarded, the educational institution 
351.34  attended, the nature of the educational program, and the program 
351.35  completion date. 
351.36     (c) Amounts spent by a facility for scholarships or for 
352.1   training in English as a second language that satisfy the 
352.2   requirements of this subdivision shall be included in the 
352.3   facility's total payment rates for the purposes of determining 
352.4   future rates under this section or any other section. 
352.5      Sec. 9.  Minnesota Statutes 2000, section 256L.07, 
352.6   subdivision 2, is amended to read: 
352.7      Subd. 2.  [MUST NOT HAVE ACCESS TO EMPLOYER-SUBSIDIZED 
352.8   COVERAGE.] (a) To be eligible, a family or individual must not 
352.9   have access to subsidized health coverage through an employer 
352.10  and must not have had access to employer-subsidized coverage 
352.11  through a current employer for 18 months prior to application or 
352.12  reapplication.  A family or individual whose employer-subsidized 
352.13  coverage is lost due to an employer terminating health care 
352.14  coverage as an employee benefit during the previous 18 months is 
352.15  not eligible.  
352.16     (b) For purposes of this requirement, subsidized health 
352.17  coverage means health coverage for which the employer pays at 
352.18  least 50 percent of the cost of coverage for the employee or 
352.19  dependent, or a higher percentage as specified by the 
352.20  commissioner.  Children are eligible for employer-subsidized 
352.21  coverage through either parent, including the noncustodial 
352.22  parent.  Children who are eligible for coverage under the 
352.23  long-term care employee health insurance assistance program 
352.24  established under section 256.956 are considered to have access 
352.25  to subsidized health coverage under this subdivision.  The 
352.26  commissioner must treat employer contributions to Internal 
352.27  Revenue Code Section 125 plans and any other employer benefits 
352.28  intended to pay health care costs as qualified employer 
352.29  subsidies toward the cost of health coverage for employees for 
352.30  purposes of this subdivision.  
352.31     <b>[EFFECTIVE DATE.]</b> This section is effective upon 
352.32  implementation of Minnesota Statutes, section 256.956. 
352.33     Sec. 10.  [EMPLOYEE SCHOLARSHIP COSTS.] 
352.34     (a) The commissioner of human services shall increase 
352.35  reimbursement rates by .25 percent for the providers listed in 
352.36  paragraph (d), effective for services rendered on or after July 
353.1   1, 2001, to be used: 
353.2      (1) for employee scholarships that satisfy the following 
353.3   requirements: 
353.4      (i) scholarships are available to all employees who work an 
353.5   average of at least 20 hours per week at the facility except the 
353.6   administrator, department supervisors, registered nurses, and 
353.7   licensed practical nurses; and 
353.8      (ii) the course of study is expected to lead to employment 
353.9   in a health-related career, including medical care interpreter 
353.10  services and social work; and 
353.11     (2) to provide job-related training on the job site in 
353.12  English as a second language. 
353.13     (b) A provider receiving a rate adjustment under this 
353.14  subdivision must report to the commissioner on a form supplied 
353.15  by the commissioner the following information:  the amount 
353.16  received from this rate adjustment; the amount used for training 
353.17  in English as a second language; the number of persons receiving 
353.18  the training; the name of the person or entity providing the 
353.19  training; and for each scholarship recipient, the name of the 
353.20  recipient, the amount awarded, the educational institution 
353.21  attended, the nature of the educational program, and the program 
353.22  completion date. 
353.23     (c) Amounts spent by a provider for scholarships or for 
353.24  training in English as a second language that satisfy the 
353.25  requirements of this section shall be included in the provider's 
353.26  total payment rates for the purposes of determining future rates.
353.27     (d) The rate increases described in this section shall be 
353.28  provided to home and community-based waivered services for 
353.29  persons with mental retardation or related conditions under 
353.30  Minnesota Statutes, section 256B.501; home and community-based 
353.31  waivered services for the elderly under Minnesota Statutes, 
353.32  section 256B.0915; waivered services under community 
353.33  alternatives for disabled individuals under Minnesota Statutes, 
353.34  section 256B.49; community alternative care waivered services 
353.35  under Minnesota Statutes, section 256B.49; traumatic brain 
353.36  injury waivered services under Minnesota Statutes, section 
354.1   256B.49; nursing services and home health services under 
354.2   Minnesota Statutes, section 256B.0625, subdivision 6a; personal 
354.3   care services and nursing supervision of personal care services 
354.4   under Minnesota Statutes, section 256B.0625, subdivision 19a; 
354.5   private duty nursing services under Minnesota Statutes, section 
354.6   256B.0625, subdivision 7; day training and habilitation services 
354.7   for adults with mental retardation or related conditions under 
354.8   Minnesota Statutes, sections 252.40 to 252.46; alternative care 
354.9   services under Minnesota Statutes, section 256B.0913; adult 
354.10  residential program grants under Minnesota Rules, parts 
354.11  9535.2000 to 9535.3000; adult and family community support 
354.12  grants under Minnesota Rules, parts 9535.1700 to 9535.1760; the 
354.13  group residential housing supplementary service rate under 
354.14  section 256I.05, subdivision 1a; adult mental health integrated 
354.15  fund grants under Minnesota Statutes, section 245.4661; and 
354.16  semi-independent living services under Minnesota Statutes, 
354.17  section 252.275. 
354.18     Sec. 11.  [CHIP WAIVER.] 
354.19     The commissioner of human services shall seek all waivers 
354.20  necessary to obtain enhanced matching funds under the state 
354.21  children's health insurance program established as title XXI of 
354.22  the Social Security Act, United States Code, title 42, section 
354.23  1397aa et seq. 
354.24     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
354.25  following final enactment.  
354.26     Sec. 12.  [S-CHIP ALLOTMENT.] Upon implementation of 
354.27  section 256.956, the commissioner shall claim eligible 
354.28  expenditures against Minnesota's available funding under the 
354.29  state children's health insurance program in the following order:
354.30     (1) expenditures made according to Minnesota Statutes, 
354.31  section 256B.057, subdivision 8; 
354.32     (2) expenditures for outreach and other state or local 
354.33  expenditures that are authorized to be claimed under Laws 1998, 
354.34  chapter 407, article 5, section 46; 
354.35     (3) expenditures under the long-term care employee health 
354.36  insurance assistance program; and 
355.1      (4) expenditures that may be eligible for matching funds 
355.2   under S-CHIP that otherwise may be claimed as Medicaid 
355.3   expenditures. 
355.4      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
355.5   following final enactment. 
355.6      Sec. 13.  [REPEALER.] 
355.7      Minnesota Statutes 2000, section 116L.12, subdivisions 2 
355.8   and 7, are repealed. 
355.9                              ARTICLE 7 
355.10                     REGULATION OF SUPPLEMENTAL 
355.11                     NURSING SERVICES AGENCIES 
355.12     Section 1.  Minnesota Statutes 2000, section 144.057, is 
355.13  amended to read: 
355.14     144.057 [BACKGROUND STUDIES ON LICENSEES AND SUPPLEMENTAL 
355.15  NURSING SERVICES AGENCY PERSONNEL.] 
355.16     Subdivision 1.  [BACKGROUND STUDIES REQUIRED.] The 
355.17  commissioner of health shall contract with the commissioner of 
355.18  human services to conduct background studies of: 
355.19     (1) individuals providing services which have direct 
355.20  contact, as defined under section 245A.04, subdivision 3, with 
355.21  patients and residents in hospitals, boarding care homes, 
355.22  outpatient surgical centers licensed under sections 144.50 to 
355.23  144.58; nursing homes and home care agencies licensed under 
355.24  chapter 144A; residential care homes licensed under chapter 
355.25  144B, and board and lodging establishments that are registered 
355.26  to provide supportive or health supervision services under 
355.27  section 157.17; and 
355.28     (2) beginning July 1, 1999, all other employees in nursing 
355.29  homes licensed under chapter 144A, and boarding care homes 
355.30  licensed under sections 144.50 to 144.58.  A disqualification of 
355.31  an individual in this section shall disqualify the individual 
355.32  from positions allowing direct contact or access to patients or 
355.33  residents receiving services; 
355.34     (3) individuals employed by a supplemental nursing services 
355.35  agency, as defined under section 144A.70, who are providing 
355.36  services in health care facilities; and 
356.1      (4) controlling persons of a supplemental nursing services 
356.2   agency, as defined under section 144A.70. 
356.3      If a facility or program is licensed by the department of 
356.4   human services and subject to the background study provisions of 
356.5   chapter 245A and is also licensed by the department of health, 
356.6   the department of human services is solely responsible for the 
356.7   background studies of individuals in the jointly licensed 
356.8   programs. 
356.9      Subd. 2.  [RESPONSIBILITIES OF DEPARTMENT OF HUMAN 
356.10  SERVICES.] The department of human services shall conduct the 
356.11  background studies required by subdivision 1 in compliance with 
356.12  the provisions of chapter 245A and Minnesota Rules, parts 
356.13  9543.3000 to 9543.3090.  For the purpose of this section, the 
356.14  term "residential program" shall include all facilities 
356.15  described in subdivision 1.  The department of human services 
356.16  shall provide necessary forms and instructions, shall conduct 
356.17  the necessary background studies of individuals, and shall 
356.18  provide notification of the results of the studies to the 
356.19  facilities, supplemental nursing services agencies, individuals, 
356.20  and the commissioner of health.  Individuals shall be 
356.21  disqualified under the provisions of chapter 245A and Minnesota 
356.22  Rules, parts 9543.3000 to 9543.3090.  If an individual is 
356.23  disqualified, the department of human services shall notify the 
356.24  facility, the supplemental nursing services agency, and the 
356.25  individual and shall inform the individual of the right to 
356.26  request a reconsideration of the disqualification by submitting 
356.27  the request to the department of health. 
356.28     Subd. 3.  [RECONSIDERATIONS.] The commissioner of health 
356.29  shall review and decide reconsideration requests, including the 
356.30  granting of variances, in accordance with the procedures and 
356.31  criteria contained in chapter 245A and Minnesota Rules, parts 
356.32  9543.3000 to 9543.3090.  The commissioner's decision shall be 
356.33  provided to the individual and to the department of human 
356.34  services.  The commissioner's decision to grant or deny a 
356.35  reconsideration of disqualification is the final administrative 
356.36  agency action. 
357.1      Subd. 4.  [RESPONSIBILITIES OF FACILITIES AND AGENCIES.] 
357.2   Facilities and agencies described in subdivision 1 shall be 
357.3   responsible for cooperating with the departments in implementing 
357.4   the provisions of this section.  The responsibilities imposed on 
357.5   applicants and licensees under chapter 245A and Minnesota Rules, 
357.6   parts 9543.3000 to 9543.3090, shall apply to these 
357.7   facilities and supplemental nursing services agencies.  The 
357.8   provision of section 245A.04, subdivision 3, paragraph (e), 
357.9   shall apply to applicants, licensees, registrants, or an 
357.10  individual's refusal to cooperate with the completion of the 
357.11  background studies.  Supplemental nursing services agencies 
357.12  subject to the registration requirements in section 144A.71 must 
357.13  maintain records verifying compliance with the background study 
357.14  requirements under this section. 
357.15     Sec. 2.  [144A.70] [REGISTRATION OF SUPPLEMENTAL NURSING 
357.16  SERVICES AGENCIES; DEFINITIONS.] 
357.17     Subdivision 1.  [SCOPE.] As used in sections 144A.70 to 
357.18  144A.74, the terms defined in this section have the meanings 
357.19  given them. 
357.20     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
357.21  commissioner of health. 
357.22     Subd. 3.  [CONTROLLING PERSON.] "Controlling person" means 
357.23  a business entity, officer, program administrator, or director 
357.24  whose responsibilities include the direction of the management 
357.25  or policies of a supplemental nursing services agency.  
357.26  Controlling person also means an individual who, directly or 
357.27  indirectly, beneficially owns an interest in a corporation, 
357.28  partnership, or other business association that is a controlling 
357.29  person. 
357.30     Subd. 4.  [HEALTH CARE FACILITY.] "Health care facility" 
357.31  means a hospital, boarding care home, or outpatient surgical 
357.32  center licensed under sections 144.50 to 144.58; a nursing home 
357.33  or home care agency licensed under chapter 144A; a housing with 
357.34  services establishment registered under chapter 144D; or a board 
357.35  and lodging establishment that is registered to provide 
357.36  supportive or health supervision services under section 157.17. 
358.1      Subd. 5.  [PERSON.] "Person" includes an individual, firm, 
358.2   corporation, partnership, or association. 
358.3      Subd. 6.  [SUPPLEMENTAL NURSING SERVICES 
358.4   AGENCY.] "Supplemental nursing services agency" means a person, 
358.5   firm, corporation, partnership, or association engaged for hire 
358.6   in the business of providing or procuring temporary employment 
358.7   in health care facilities for nurses, nursing assistants, nurse 
358.8   aides, and orderlies.  Supplemental nursing services agency does 
358.9   not include an individual who only engages in providing the 
358.10  individual's services on a temporary basis to health care 
358.11  facilities.  Supplemental nursing services agency also does not 
358.12  include any nursing service agency that is limited to providing 
358.13  temporary nursing personnel solely to one or more health care 
358.14  facilities owned or operated by the same person, firm, 
358.15  corporation, or partnership. 
358.16     Sec. 3.  [144A.71] [SUPPLEMENTAL NURSING SERVICES AGENCY 
358.17  REGISTRATION.] 
358.18     Subdivision 1.  [DUTY TO REGISTER.] A person who operates a 
358.19  supplemental nursing services agency shall register the agency 
358.20  with the commissioner.  Each separate location of the business 
358.21  of a supplemental nursing services agency shall register the 
358.22  agency with the commissioner.  Each separate location of the 
358.23  business of a supplemental nursing services agency shall have a 
358.24  separate registration. 
358.25     Subd. 2.  [APPLICATION INFORMATION AND FEE.] The 
358.26  commissioner shall establish forms and procedures for processing 
358.27  each supplemental nursing services agency registration 
358.28  application.  An application for a supplemental nursing services 
358.29  agency registration must include at least the following: 
358.30     (1) the names and addresses of the owner or owners of the 
358.31  supplemental nursing services agency; 
358.32     (2) if the owner is a corporation, copies of its articles 
358.33  of incorporation and current bylaws, together with the names and 
358.34  addresses of its officers and directors; 
358.35     (3) any other relevant information that the commissioner 
358.36  determines is necessary to properly evaluate an application for 
359.1   registration; and 
359.2      (4) the annual registration fee for a supplemental nursing 
359.3   services agency, which is $891. 
359.4      Subd. 3.  [REGISTRATION NOT TRANSFERABLE.] A registration 
359.5   issued by the commissioner according to this section is 
359.6   effective for a period of one year from the date of its issuance 
359.7   unless the registration is revoked or suspended under section 
359.8   144A.72, subdivision 2, or unless the supplemental nursing 
359.9   services agency is sold or ownership or management is 
359.10  transferred.  When a supplemental nursing services agency is 
359.11  sold or ownership or management is transferred, the registration 
359.12  of the agency must be voided and the new owner or operator may 
359.13  apply for a new registration. 
359.14     Sec. 4.  [144A.72] [REGISTRATION REQUIREMENTS; PENALTIES.] 
359.15     Subdivision 1.  [MINIMUM CRITERIA.] The commissioner shall 
359.16  require that, as a condition of registration: 
359.17     (1) the supplemental nursing services agency shall document 
359.18  that each temporary employee provided to health care facilities 
359.19  currently meets the minimum licensing, training, and continuing 
359.20  education standards for the position in which the employee will 
359.21  be working; 
359.22     (2) the supplemental nursing services agency shall comply 
359.23  with all pertinent requirements relating to the health and other 
359.24  qualifications of personnel employed in health care facilities; 
359.25     (3) the supplemental nursing services agency must not 
359.26  restrict in any manner the employment opportunities of its 
359.27  employees; 
359.28     (4) the supplemental nursing services agency, when 
359.29  supplying temporary employees to a health care facility, and 
359.30  when requested by the facility to do so, shall agree that at 
359.31  least 30 percent of the total personnel hours supplied are 
359.32  during night, holiday, or weekend shifts; 
359.33     (5) the supplemental nursing services agency shall carry 
359.34  medical malpractice insurance to insure against the loss, 
359.35  damage, or expense incident to a claim arising out of the death 
359.36  or injury of any person as the result of negligence or 
360.1   malpractice in the provision of health care services by the 
360.2   supplemental nursing services agency or by any employee of the 
360.3   agency; and 
360.4      (6) the supplemental nursing services agency must not, in 
360.5   any contract with any employee or health care facility, require 
360.6   the payment of liquidated damages, employment fees, or other 
360.7   compensation should the employee be hired as a permanent 
360.8   employee of a health care facility. 
360.9      Subd. 2.  [PENALTIES.] A pattern of failure to comply with 
360.10  this section shall subject the supplemental nursing services 
360.11  agency to revocation or nonrenewal of its registration.  
360.12  Violations of section 144A.74 are subject to a fine equal to 200 
360.13  percent of the amount billed or received in excess of the 
360.14  maximum permitted under that section. 
360.15     Sec. 5.  [144A.73] [COMPLAINT SYSTEM.] 
360.16     The commissioner shall establish a system for reporting 
360.17  complaints against a supplemental nursing services agency or its 
360.18  employees.  Complaints may be made by any member of the public.  
360.19  Written complaints must be forwarded to the employer of each 
360.20  person against whom a complaint is made.  The employer shall 
360.21  promptly report to the commissioner any corrective action taken. 
360.22     Sec. 6.  [144A.74] [MAXIMUM CHARGES.] 
360.23     A supplemental nursing services agency must not bill or 
360.24  receive payments from a health care facility at a rate higher 
360.25  than 150 percent of the average wage rate by employee 
360.26  classification as identified by the commissioner of economic 
360.27  security.  The maximum rate must include all charges for 
360.28  administrative fees, contract fees, or other special charges in 
360.29  addition to the hourly rates for the temporary nursing pool 
360.30  personnel supplied to a nursing home. 
360.31     Sec. 7.  [256B.039] [REPORTING OF SUPPLEMENTAL NURSING 
360.32  SERVICES AGENCY USE.] 
360.33     Beginning March 1, 2002, the commissioner shall to report 
360.34  to the legislature annually on the use of supplemental nursing 
360.35  services, including the number of hours worked by supplemental 
360.36  nursing services agency personnel and payments to supplemental 
361.1   nursing services agencies. 
361.2                              ARTICLE 8 
361.3                       LONG-TERM CARE INSURANCE 
361.4      Section 1.  Minnesota Statutes 2000, section 62A.48, 
361.5   subdivision 4, is amended to read: 
361.6      Subd. 4.  [LOSS RATIO.] The anticipated loss ratio for 
361.7   long-term care policies must not be less than 65 percent for 
361.8   policies issued on a group basis or 60 percent for policies 
361.9   issued on an individual or mass-market basis.  This subdivision 
361.10  does not apply to policies issued on or after January 1, 2002, 
361.11  that comply with sections 62S.021 and 62S.081. 
361.12     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
361.13  following final enactment. 
361.14     Sec. 2.  Minnesota Statutes 2000, section 62A.48, is 
361.15  amended by adding a subdivision to read: 
361.16     Subd. 10.  [REGULATION OF PREMIUMS AND PREMIUM 
361.17  INCREASES.] Policies issued under sections 62A.46 to 62A.56 on 
361.18  or after January 1, 2002, must comply with sections 62S.021, 
361.19  62S.081, 62S.265, and 62S.266 to the same extent as policies 
361.20  issued under chapter 62S. 
361.21     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
361.22  following final enactment. 
361.23     Sec. 3.  Minnesota Statutes 2000, section 62A.48, is 
361.24  amended by adding a subdivision to read: 
361.25     Subd. 11.  [NONFORFEITURE BENEFITS.] Policies issued under 
361.26  sections 62A.46 to 62A.56 on or after January 1, 2002, must 
361.27  comply with section 62S.02, subdivision 2, to the same extent as 
361.28  policies issued under chapter 62S. 
361.29     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
361.30  following final enactment. 
361.31     Sec. 4.  Minnesota Statutes 2000, section 62S.01, is 
361.32  amended by adding a subdivision to read: 
361.33     Subd. 13a.  [EXCEPTIONAL INCREASE.] (a) "Exceptional 
361.34  increase" means only those premium rate increases filed by an 
361.35  insurer as exceptional for which the commissioner determines 
361.36  that the need for the premium rate increase is justified due to 
362.1   changes in laws or rules applicable to long-term care coverage 
362.2   in this state, or due to increased and unexpected utilization 
362.3   that affects the majority of insurers of similar products. 
362.4      (b) Except as provided in section 62S.265, exceptional 
362.5   increases are subject to the same requirements as other premium 
362.6   rate schedule increases.  The commissioner may request a review 
362.7   by an independent actuary or a professional actuarial body of 
362.8   the basis for a request that an increase be considered an 
362.9   exceptional increase.  The commissioner, in determining that the 
362.10  necessary basis for an exceptional increase exists, shall also 
362.11  determine any potential offsets to higher claims costs. 
362.12     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
362.13  following final enactment. 
362.14     Sec. 5.  Minnesota Statutes 2000, section 62S.01, is 
362.15  amended by adding a subdivision to read: 
362.16     Subd. 17a.  [INCIDENTAL.] "Incidental," as used in section 
362.17  62S.265, subdivision 10, means that the value of the long-term 
362.18  care benefits provided is less than ten percent of the total 
362.19  value of the benefits provided over the life of the policy.  
362.20  These values must be measured as of the date of issue. 
362.21     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
362.22  following final enactment. 
362.23     Sec. 6.  Minnesota Statutes 2000, section 62S.01, is 
362.24  amended by adding a subdivision to read: 
362.25     Subd. 23a.  [QUALIFIED ACTUARY.] "Qualified actuary" means 
362.26  a member in good standing of the American Academy of Actuaries. 
362.27     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
362.28  following final enactment. 
362.29     Sec. 7.  Minnesota Statutes 2000, section 62S.01, is 
362.30  amended by adding a subdivision to read: 
362.31     Subd. 25a.  [SIMILAR POLICY FORMS.] "Similar policy forms" 
362.32  means all of the long-term care insurance policies and 
362.33  certificates issued by an insurer in the same long-term care 
362.34  benefit classification as the policy form being considered.  
362.35  Certificates of groups that meet the definition in section 
362.36  62S.01, subdivision 15, clause (1), are not considered similar 
363.1   to certificates or policies otherwise issued as long-term care 
363.2   insurance, but are similar to other comparable certificates with 
363.3   the same long-term care benefit classifications.  For purposes 
363.4   of determining similar policy forms, long-term care benefit 
363.5   classifications are defined as follows:  institutional long-term 
363.6   care benefits only, noninstitutional long-term care benefits 
363.7   only, or comprehensive long-term care benefits. 
363.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
363.9   following final enactment. 
363.10     Sec. 8.  [62S.021] [LONG-TERM CARE INSURANCE; INITIAL 
363.11  FILING.] 
363.12     Subdivision 1.  [APPLICABILITY.] This section applies to 
363.13  any long-term care policy issued in this state on or after 
363.14  January 1, 2002, under this chapter or sections 62A.46 to 62A.56.
363.15     Subd. 2.  [REQUIRED SUBMISSION TO COMMISSIONER.] An insurer 
363.16  shall provide the following information to the commissioner 30 
363.17  days prior to making a long-term care insurance form available 
363.18  for sale: 
363.19     (1) a copy of the disclosure documents required in section 
363.20  62S.081; and 
363.21     (2) an actuarial certification consisting of at least the 
363.22  following: 
363.23     (i) a statement that the initial premium rate schedule is 
363.24  sufficient to cover anticipated costs under moderately adverse 
363.25  experience and that the premium rate schedule is reasonably 
363.26  expected to be sustainable over the life of the form with no 
363.27  future premium increases anticipated; 
363.28     (ii) a statement that the policy design and coverage 
363.29  provided have been reviewed and taken into consideration; 
363.30     (iii) a statement that the underwriting and claims 
363.31  adjudication processes have been reviewed and taken into 
363.32  consideration; and 
363.33     (iv) a complete description of the basis for contract 
363.34  reserves that are anticipated to be held under the form, to 
363.35  include: 
363.36     (A) sufficient detail or sample calculations provided so as 
364.1   to have a complete depiction of the reserve amounts to be held; 
364.2      (B) a statement that the assumptions used for reserves 
364.3   contain reasonable margins for adverse experience; 
364.4      (C) a statement that the net valuation premium for renewal 
364.5   years does not increase, except for attained age rating where 
364.6   permitted; 
364.7      (D) a statement that the difference between the gross 
364.8   premium and the net valuation premium for renewal years is 
364.9   sufficient to cover expected renewal expenses, or if such a 
364.10  statement cannot be made, a complete description of the 
364.11  situations in which this does not occur.  An aggregate 
364.12  distribution of anticipated issues may be used as long as the 
364.13  underlying gross premiums maintain a reasonably consistent 
364.14  relationship.  If the gross premiums for certain age groups 
364.15  appear to be inconsistent with this requirement, the 
364.16  commissioner may request a demonstration under item (i) based on 
364.17  a standard age distribution; and 
364.18     (E) either a statement that the premium rate schedule is 
364.19  not less than the premium rate schedule for existing similar 
364.20  policy forms also available from the insurer except for 
364.21  reasonable differences attributable to benefits, or a comparison 
364.22  of the premium schedules for similar policy forms that are 
364.23  currently available from the insurer with an explanation of the 
364.24  differences. 
364.25     Subd. 3.  [ACTUARIAL DEMONSTRATION.] The commissioner may 
364.26  request an actuarial demonstration that benefits are reasonable 
364.27  in relation to premiums.  The actuarial demonstration must 
364.28  include either premium and claim experience on similar policy 
364.29  forms, adjusted for any premium or benefit differences, relevant 
364.30  and credible data from other studies, or both.  If the 
364.31  commissioner asks for additional information under this 
364.32  subdivision, the 30-day time limit in subdivision 2 does not 
364.33  include the time during which the insurer is preparing the 
364.34  requested information. 
364.35     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
364.36  following final enactment. 
365.1      Sec. 9.  [62S.081] [REQUIRED DISCLOSURE OF RATING PRACTICES 
365.2   TO CONSUMERS.] 
365.3      Subdivision 1.  [APPLICATION.] This section applies as 
365.4   follows: 
365.5      (a) Except as provided in paragraph (b), this section 
365.6   applies to any long-term care policy or certificate issued in 
365.7   this state on or after January 1, 2002. 
365.8      (b) For certificates issued on or after the effective date 
365.9   of this section under a policy of group long-term care insurance 
365.10  as defined in section 62S.01, subdivision 15, that was in force 
365.11  on the effective date of this section, this section applies on 
365.12  the policy anniversary following June 30, 2002. 
365.13     Subd. 2.  [REQUIRED DISCLOSURES.] Other than policies for 
365.14  which no applicable premium rate or rate schedule increases can 
365.15  be made, insurers shall provide all of the information listed in 
365.16  this subdivision to the applicant at the time of application or 
365.17  enrollment, unless the method of application does not allow for 
365.18  delivery at that time; in this case, an insurer shall provide 
365.19  all of the information listed in this subdivision to the 
365.20  applicant no later than at the time of delivery of the policy or 
365.21  certificate: 
365.22     (1) a statement that the policy may be subject to rate 
365.23  increases in the future; 
365.24     (2) an explanation of potential future premium rate 
365.25  revisions and the policyholder's or certificate holder's option 
365.26  in the event of a premium rate revision; 
365.27     (3) the premium rate or rate schedules applicable to the 
365.28  applicant that will be in effect until a request is made for an 
365.29  increase; 
365.30     (4) a general explanation of applying premium rate or rate 
365.31  schedule adjustments that must include: 
365.32     (i) a description of when premium rate or rate schedule 
365.33  adjustments will be effective, for example the next anniversary 
365.34  date or the next billing date; and 
365.35     (ii) the right to a revised premium rate or rate schedule 
365.36  as provided in clause (3) if the premium rate or rate schedule 
366.1   is changed; and 
366.2      (5)(i) information regarding each premium rate increase on 
366.3   this policy form or similar policy forms over the past ten years 
366.4   for this state or any other state that, at a minimum, identifies:
366.5      (A) the policy forms for which premium rates have been 
366.6   increased; 
366.7      (B) the calendar years when the form was available for 
366.8   purchase; and 
366.9      (C) the amount or percent of each increase.  The percentage 
366.10  may be expressed as a percentage of the premium rate prior to 
366.11  the increase and may also be expressed as minimum and maximum 
366.12  percentages if the rate increase is variable by rating 
366.13  characteristics; 
366.14     (ii) the insurer may, in a fair manner, provide additional 
366.15  explanatory information related to the rate increases; 
366.16     (iii) an insurer has the right to exclude from the 
366.17  disclosure premium rate increases that apply only to blocks of 
366.18  business acquired from other nonaffiliated insurers or the 
366.19  long-term care policies acquired from other nonaffiliated 
366.20  insurers when those increases occurred prior to the acquisition; 
366.21     (iv) if an acquiring insurer files for a rate increase on a 
366.22  long-term care policy form acquired from nonaffiliated insurers 
366.23  or a block of policy forms acquired from nonaffiliated insurers 
366.24  on or before the later of the effective date of this section, or 
366.25  the end of a 24-month period following the acquisition of the 
366.26  block of policies, the acquiring insurer may exclude that rate 
366.27  increase from the disclosure.  However, the nonaffiliated 
366.28  selling company must include the disclosure of that rate 
366.29  increase according to item (i); and 
366.30     (v) if the acquiring insurer in item (iv) files for a 
366.31  subsequent rate increase, even within the 24-month period, on 
366.32  the same policy form acquired from nonaffiliated insurers or 
366.33  block of policy forms acquired from nonaffiliated insurers 
366.34  referenced in item (iv), the acquiring insurer shall make all 
366.35  disclosures required by this subdivision, including disclosure 
366.36  of the earlier rate increase referenced in item (iv). 
367.1      Subd. 3.  [ACKNOWLEDGMENT.] An applicant shall sign an 
367.2   acknowledgment at the time of application, unless the method of 
367.3   application does not allow for signature at that time, that the 
367.4   insurer made the disclosure required under subdivision 2.  If, 
367.5   due to the method of application, the applicant cannot sign an 
367.6   acknowledgment at the time of application, the applicant shall 
367.7   sign no later than at the time of delivery of the policy or 
367.8   certificate. 
367.9      Subd. 4.  [FORMS.] An insurer shall use the forms in 
367.10  Appendices B and F of the Long-term Care Insurance Model 
367.11  Regulation adopted by the National Association of Insurance 
367.12  Commissioners to comply with the requirements of subdivisions 1 
367.13  and 2. 
367.14     Subd. 5.  [NOTICE OF INCREASE.] An insurer shall provide 
367.15  notice of an upcoming premium rate schedule increase, after the 
367.16  increase has been approved by the commissioner, to all 
367.17  policyholders or certificate holders, if applicable, at least 45 
367.18  days prior to the implementation of the premium rate schedule 
367.19  increase by the insurer.  The notice must include the 
367.20  information required by subdivision 2 when the rate increase is 
367.21  implemented. 
367.22     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
367.23  following final enactment. 
367.24     Sec. 10.  Minnesota Statutes 2000, section 62S.26, is 
367.25  amended to read: 
367.26     62S.26 [LOSS RATIO.] 
367.27     (a) The minimum loss ratio must be at least 60 percent, 
367.28  calculated in a manner which provides for adequate reserving of 
367.29  the long-term care insurance risk.  In evaluating the expected 
367.30  loss ratio, the commissioner shall give consideration to all 
367.31  relevant factors, including: 
367.32     (1) statistical credibility of incurred claims experience 
367.33  and earned premiums; 
367.34     (2) the period for which rates are computed to provide 
367.35  coverage; 
367.36     (3) experienced and projected trends; 
368.1      (4) concentration of experience within early policy 
368.2   duration; 
368.3      (5) expected claim fluctuation; 
368.4      (6) experience refunds, adjustments, or dividends; 
368.5      (7) renewability features; 
368.6      (8) all appropriate expense factors; 
368.7      (9) interest; 
368.8      (10) experimental nature of the coverage; 
368.9      (11) policy reserves; 
368.10     (12) mix of business by risk classification; and 
368.11     (13) product features such as long elimination periods, 
368.12  high deductibles, and high maximum limits. 
368.13     (b) This section does not apply to policies or certificates 
368.14  that are subject to sections 62S.021, 62S.081, and 62S.265, and 
368.15  that comply with those sections. 
368.16     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
368.17  following final enactment. 
368.18     Sec. 11.  [62S.265] [PREMIUM RATE SCHEDULE INCREASES.] 
368.19     Subdivision 1.  [APPLICABILITY.] (a) Except as provided in 
368.20  paragraph (b), this section applies to any long-term care policy 
368.21  or certificate issued in this state on or after January 1, 2002, 
368.22  under this chapter or sections 62A.46 to 62A.56. 
368.23     (b) For certificates issued on or after the effective date 
368.24  of this section under a group long-term care insurance policy as 
368.25  defined in section 62S.01, subdivision 15, issued under this 
368.26  chapter, that was in force on the effective date of this 
368.27  section, this section applies on the policy anniversary 
368.28  following June 30, 2002. 
368.29     Subd. 2.  [NOTICE.] An insurer shall file a requested 
368.30  premium rate schedule increase, including an exceptional 
368.31  increase, to the commissioner for prior approval at least 60 
368.32  days prior to the notice to the policyholders and shall include: 
368.33     (1) all information required by section 62S.081; 
368.34     (2) certification by a qualified actuary that: 
368.35     (i) if the requested premium rate schedule increase is 
368.36  implemented and the underlying assumptions, which reflect 
369.1   moderately adverse conditions, are realized, no further premium 
369.2   rate schedule increases are anticipated; and 
369.3      (ii) the premium rate filing complies with this section; 
369.4      (3) an actuarial memorandum justifying the rate schedule 
369.5   change request that includes: 
369.6      (i) lifetime projections of earned premiums and incurred 
369.7   claims based on the filed premium rate schedule increase and the 
369.8   method and assumptions used in determining the projected values, 
369.9   including reflection of any assumptions that deviate from those 
369.10  used for pricing other forms currently available for sale; 
369.11     (A) annual values for the five years preceding and the 
369.12  three years following the valuation date must be provided 
369.13  separately; 
369.14     (B) the projections must include the development of the 
369.15  lifetime loss ratio, unless the rate increase is an exceptional 
369.16  increase; 
369.17     (C) the projections must demonstrate compliance with 
369.18  subdivision 3; and 
369.19     (D) for exceptional increases, the projected experience 
369.20  must be limited to the increases in claims expenses attributable 
369.21  to the approved reasons for the exceptional increase and, if the 
369.22  commissioner determines that offsets to higher claim costs may 
369.23  exist, the insurer shall use appropriate net projected 
369.24  experience; 
369.25     (ii) disclosure of how reserves have been incorporated in 
369.26  this rate increase whenever the rate increase will trigger 
369.27  contingent benefit upon lapse; 
369.28     (iii) disclosure of the analysis performed to determine why 
369.29  a rate adjustment is necessary, which pricing assumptions were 
369.30  not realized and why, and what other actions taken by the 
369.31  company have been relied upon by the actuary; 
369.32     (iv) a statement that policy design, underwriting, and 
369.33  claims adjudication practices have been taken into 
369.34  consideration; and 
369.35     (v) if it is necessary to maintain consistent premium rates 
369.36  for new certificates and certificates receiving a rate increase, 
370.1   the insurer shall file composite rates reflecting projections of 
370.2   new certificates; 
370.3      (4) a statement that renewal premium rate schedules are not 
370.4   greater than new business premium rate schedules except for 
370.5   differences attributable to benefits, unless sufficient 
370.6   justification is provided to the commissioner; and 
370.7      (5) sufficient information for review and approval of the 
370.8   premium rate schedule increase by the commissioner. 
370.9      Subd. 3.  [REQUIREMENTS PERTAINING TO RATE INCREASES.] All 
370.10  premium rate schedule increases must be determined according to 
370.11  the following requirements: 
370.12     (1) exceptional increases must provide that 70 percent of 
370.13  the present value of projected additional premiums from the 
370.14  exceptional increase will be returned to policyholders in 
370.15  benefits; 
370.16     (2) premium rate schedule increases must be calculated so 
370.17  that the sum of the accumulated value of incurred claims, 
370.18  without the inclusion of active life reserves, and the present 
370.19  value of future projected incurred claims, without the inclusion 
370.20  of active life reserves, will not be less than the sum of the 
370.21  following: 
370.22     (i) the accumulated value of the initial earned premium 
370.23  times 58 percent; 
370.24     (ii) 85 percent of the accumulated value of prior premium 
370.25  rate schedule increases on an earned basis; 
370.26     (iii) the present value of future projected initial earned 
370.27  premiums times 58 percent; and 
370.28     (iv) 85 percent of the present value of future projected 
370.29  premiums not in item (iii) on an earned basis; 
370.30     (3) if a policy form has both exceptional and other 
370.31  increases, the values in clause (2), items (ii) and (iv), must 
370.32  also include 70 percent for exceptional rate increase amounts; 
370.33  and 
370.34     (4) all present and accumulated values used to determine 
370.35  rate increases must use the maximum valuation interest rate for 
370.36  contract reserves permitted for valuation of whole life 
371.1   insurance policies issued in this state on the same date.  The 
371.2   actuary shall disclose as part of the actuarial memorandum the 
371.3   use of any appropriate averages. 
371.4      Subd. 4.  [PROJECTIONS.] For each rate increase that is 
371.5   implemented, the insurer shall file for approval by the 
371.6   commissioner updated projections, as described in subdivision 2, 
371.7   clause (3), item (i), annually for the next three years and 
371.8   include a comparison of actual results to projected values.  The 
371.9   commissioner may extend the period to greater than three years 
371.10  if actual results are not consistent with projected values from 
371.11  prior projections.  For group insurance policies that meet the 
371.12  conditions in subdivision 11, the projections required by this 
371.13  subdivision must be provided to the policyholder in lieu of 
371.14  filing with the commissioner. 
371.15     Subd. 5.  [LIFETIME PROJECTIONS.] If any premium rate in 
371.16  the revised premium rate schedule is greater than 200 percent of 
371.17  the comparable rate in the initial premium schedule, lifetime 
371.18  projections, as described in subdivision 2, clause (3), item 
371.19  (i), must be filed for approval by the commissioner every five 
371.20  years following the end of the required period in subdivision 
371.21  4.  For group insurance policies that meet the conditions in 
371.22  subdivision 11, the projections required by this subdivision 
371.23  must be provided to the policyholder in lieu of filing with the 
371.24  commissioner. 
371.25     Subd. 6.  [EFFECT OF ACTUAL EXPERIENCE.] (a) If the 
371.26  commissioner has determined that the actual experience following 
371.27  a rate increase does not adequately match the projected 
371.28  experience and that the current projections under moderately 
371.29  adverse conditions demonstrate that incurred claims will not 
371.30  exceed proportions of premiums specified in subdivision 3, the 
371.31  commissioner may require the insurer to implement any of the 
371.32  following: 
371.33     (1) premium rate schedule adjustments; or 
371.34     (2) other measures to reduce the difference between the 
371.35  projected and actual experience. 
371.36     (b) In determining whether the actual experience adequately 
372.1   matches the projected experience, consideration must be given to 
372.2   subdivision 2, clause (3), item (v), if applicable. 
372.3      Subd. 7.  [CONTINGENT BENEFIT UPON LAPSE.] If the majority 
372.4   of the policies or certificates to which the increase is 
372.5   applicable are eligible for the contingent benefit upon lapse, 
372.6   the insurer shall file: 
372.7      (1) a plan, subject to commissioner approval, for improved 
372.8   administration or claims processing designed to eliminate the 
372.9   potential for further deterioration of the policy form requiring 
372.10  further premium rate schedule increases, or both, or a 
372.11  demonstration that appropriate administration and claims 
372.12  processing have been implemented or are in effect; otherwise, 
372.13  the commissioner may impose the condition in subdivision 8, 
372.14  paragraph (b); and 
372.15     (2) the original anticipated lifetime loss ratio, and the 
372.16  premium rate schedule increase that would have been calculated 
372.17  according to subdivision 3 had the greater of the original 
372.18  anticipated lifetime loss ratio or 58 percent been used in the 
372.19  calculations described in subdivision 3, clause (2), items (i) 
372.20  and (iii). 
372.21     Subd. 8.  [PROJECTED LAPSE RATES.] (a) For a rate increase 
372.22  filing that meets the following criteria, the commissioner shall 
372.23  review, for all policies included in the filing, the projected 
372.24  lapse rates and past lapse rates during the 12 months following 
372.25  each increase to determine if significant adverse lapsation has 
372.26  occurred or is anticipated: 
372.27     (1) the rate increase is not the first rate increase 
372.28  requested for the specific policy form or forms; 
372.29     (2) the rate increase is not an exceptional increase; and 
372.30     (3) the majority of the policies or certificates to which 
372.31  the increase is applicable are eligible for the contingent 
372.32  benefit upon lapse. 
372.33     (b) If significant adverse lapsation has occurred, is 
372.34  anticipated in the filing, or is evidenced in the actual results 
372.35  as presented in the updated projections provided by the insurer 
372.36  following the requested rate increase, the commissioner may 
373.1   determine that a rate spiral exists.  Following the 
373.2   determination that a rate spiral exists, the commissioner may 
373.3   require the insurer to offer, without underwriting, to all 
373.4   in-force insureds subject to the rate increase, the option to 
373.5   replace existing coverage with one or more reasonably comparable 
373.6   products being offered by the insurer or its affiliates.  The 
373.7   offer must: 
373.8      (1) be subject to the approval of the commissioner; 
373.9      (2) be based upon actuarially sound principles, but not be 
373.10  based upon attained age; and 
373.11     (3) provide that maximum benefits under any new policy 
373.12  accepted by an insured are reduced by comparable benefits 
373.13  already paid under the existing policy. 
373.14     (c) The insurer shall maintain the experience of all the 
373.15  replacement insureds separate from the experience of insureds 
373.16  originally issued the policy forms.  In the event of a request 
373.17  for a rate increase on the policy form, the rate increase must 
373.18  be limited to the lesser of the maximum rate increase determined 
373.19  based on the combined experience and the maximum rate increase 
373.20  determined based only upon the experience of the insureds 
373.21  originally issued the form plus ten percent. 
373.22     Subd. 9.  [PERSISTENT PRACTICE OF INADEQUATE INITIAL 
373.23  RATES.] If the commissioner determines that the insurer has 
373.24  exhibited a persistent practice of filing inadequate initial 
373.25  premium rates for long-term care insurance, the commissioner 
373.26  may, in addition to the provisions of subdivision 8, prohibit 
373.27  the insurer from either of the following: 
373.28     (1) filing and marketing comparable coverage for a period 
373.29  of up to five years; or 
373.30     (2) offering all other similar coverages and limiting 
373.31  marketing of new applications to the products subject to recent 
373.32  premium rate schedule increases. 
373.33     Subd. 10.  [INCIDENTAL LONG-TERM CARE 
373.34  BENEFITS.] Subdivisions 1 to 9 do not apply to policies for 
373.35  which the long-term care benefits provided by the policy are 
373.36  incidental, as defined in section 62S.01, subdivision 17a, if 
374.1   the policy complies with all of the following provisions: 
374.2      (1) the interest credited internally to determine cash 
374.3   value accumulations, including long-term care, if any, are 
374.4   guaranteed not to be less than the minimum guaranteed interest 
374.5   rate for cash value accumulations without long-term care set 
374.6   forth in the policy; 
374.7      (2) the portion of the policy that provides insurance 
374.8   benefits other than long-term care coverage meets the 
374.9   nonforfeiture requirements as applicable in any of the following:
374.10     (i) for life insurance, section 61A.25; 
374.11     (ii) for individual deferred annuities, section 61A.245; 
374.12  and 
374.13     (iii) for variable annuities, section 61A.21; 
374.14     (3) the policy meets the disclosure requirements of 
374.15  sections 62S.10 and 62S.11 if the policy is governed by chapter 
374.16  62S and of section 62A.50 if the policy is governed by sections 
374.17  62A.46 to 62A.56; 
374.18     (4) the portion of the policy that provides insurance 
374.19  benefits other than long-term care coverage meets the 
374.20  requirements as applicable in the following: 
374.21     (i) policy illustrations to the extent required by state 
374.22  law applicable to life insurance; 
374.23     (ii) disclosure requirements in state law applicable to 
374.24  annuities; and 
374.25     (iii) disclosure requirements applicable to variable 
374.26  annuities; and 
374.27     (5) an actuarial memorandum is filed with the commissioner 
374.28  that includes: 
374.29     (i) a description of the basis on which the long-term care 
374.30  rates were determined; 
374.31     (ii) a description of the basis for the reserves; 
374.32     (iii) a summary of the type of policy, benefits, 
374.33  renewability, general marketing method, and limits on ages of 
374.34  issuance; 
374.35     (iv) a description and a table of each actuarial assumption 
374.36  used.  For expenses, an insurer must include percent of premium 
375.1   dollars per policy and dollars per unit of benefits, if any; 
375.2      (v) a description and a table of the anticipated policy 
375.3   reserves and additional reserves to be held in each future year 
375.4   for active lives; 
375.5      (vi) the estimated average annual premium per policy and 
375.6   the average issue age; 
375.7      (vii) a statement as to whether underwriting is performed 
375.8   at the time of application.  The statement must indicate whether 
375.9   underwriting is used and, if used, the statement shall include a 
375.10  description of the type or types of underwriting used, such as 
375.11  medical underwriting or functional assessment underwriting.  
375.12  Concerning a group policy, the statement must indicate whether 
375.13  the enrollee or any dependent will be underwritten and when 
375.14  underwriting occurs; and 
375.15     (viii) a description of the effect of the long-term care 
375.16  policy provision on the required premiums, nonforfeiture values, 
375.17  and reserves on the underlying insurance policy, both for active 
375.18  lives and those in long-term care claim status. 
375.19     Subd. 11.  [LARGE GROUP POLICIES.] Subdivisions 6 and 9 do 
375.20  not apply to group long-term care insurance policies as defined 
375.21  in section 62S.01, subdivision 15, where: 
375.22     (1) the policies insure 250 or more persons, and the 
375.23  policyholder has 5,000 or more eligible employees of a single 
375.24  employer; or 
375.25     (2) the policyholder, and not the certificate holders, pays 
375.26  a material portion of the premium, which is not less than 20 
375.27  percent of the total premium for the group in the calendar year 
375.28  prior to the year in which a rate increase is filed. 
375.29     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
375.30  following final enactment. 
375.31     Sec. 12.  [62S.266] [NONFORFEITURE BENEFIT REQUIREMENT.] 
375.32     Subdivision 1.  [APPLICABILITY.] This section does not 
375.33  apply to life insurance policies or riders containing 
375.34  accelerated long-term care benefits. 
375.35     Subd. 2.  [REQUIREMENT.] An insurer must offer each 
375.36  prospective policyholder a nonforfeiture benefit in compliance 
376.1   with the following requirements: 
376.2      (1) a policy or certificate offered with nonforfeiture 
376.3   benefits must have coverage elements, eligibility, benefit 
376.4   triggers, and benefit length that are the same as coverage to be 
376.5   issued without nonforfeiture benefits.  The nonforfeiture 
376.6   benefit included in the offer must be the benefit described in 
376.7   subdivision 5; and 
376.8      (2) the offer must be in writing if the nonforfeiture 
376.9   benefit is not otherwise described in the outline of coverage or 
376.10  other materials given to the prospective policyholder. 
376.11     Subd. 3.  [EFFECT OF REJECTION OF OFFER.] If the offer 
376.12  required to be made under subdivision 2 is rejected, the insurer 
376.13  shall provide the contingent benefit upon lapse described in 
376.14  this section. 
376.15     Subd. 4.  [CONTINGENT BENEFIT UPON LAPSE.] (a) After 
376.16  rejection of the offer required under subdivision 2, for 
376.17  individual and group policies without nonforfeiture benefits 
376.18  issued after the effective date of this section, the insurer 
376.19  shall provide a contingent benefit upon lapse. 
376.20     (b) If a group policyholder elects to make the 
376.21  nonforfeiture benefit an option to the certificate holder, a 
376.22  certificate shall provide either the nonforfeiture benefit or 
376.23  the contingent benefit upon lapse. 
376.24     (c) The contingent benefit on lapse must be triggered every 
376.25  time an insurer increases the premium rates to a level which 
376.26  results in a cumulative increase of the annual premium equal to 
376.27  or exceeding the percentage of the insured's initial annual 
376.28  premium based on the insured's issue age provided in this 
376.29  paragraph, and the policy or certificate lapses within 120 days 
376.30  of the due date of the premium increase.  Unless otherwise 
376.31  required, policyholders shall be notified at least 30 days prior 
376.32  to the due date of the premium reflecting the rate increase. 
376.33           Triggers for a Substantial Premium Increase 
376.34                      Percent Increase
376.35       Issue Age      Over Initial Premium
376.36       29 and Under            200
377.1           30-34                190
377.2           35-39                170
377.3           40-44                150
377.4           45-49                130
377.5           50-54                110
377.6           55-59                 90
377.7              60                 70
377.8              61                 66
377.9              62                 62
377.10             63                 58
377.11             64                 54
377.12             65                 50
377.13             66                 48
377.14             67                 46
377.15             68                 44
377.16             69                 42
377.17             70                 40
377.18             71                 38
377.19             72                 36
377.20             73                 34
377.21             74                 32
377.22             75                 30
377.23             76                 28
377.24             77                 26
377.25             78                 24
377.26             79                 22
377.27             80                 20
377.28             81                 19
377.29             82                 18
377.30             83                 17
377.31             84                 16
377.32             85                 15
377.33             86                 14
377.34             87                 13
377.35             88                 12
377.36             89                 11
378.1          90 and over            10
378.2      (d) On or before the effective date of a substantial 
378.3   premium increase as defined in paragraph (c), the insurer shall: 
378.4      (1) offer to reduce policy benefits provided by the current 
378.5   coverage without the requirement of additional underwriting so 
378.6   that required premium payments are not increased; 
378.7      (2) offer to convert the coverage to a paid-up status with 
378.8   a shortened benefit period according to the terms of subdivision 
378.9   5.  This option may be elected at any time during the 120-day 
378.10  period referenced in paragraph (c); and 
378.11     (3) notify the policyholder or certificate holder that a 
378.12  default or lapse at any time during the 120-day period 
378.13  referenced in paragraph (c) is deemed to be the election of the 
378.14  offer to convert in clause (2). 
378.15     Subd. 5.  [NONFORFEITURE BENEFITS; REQUIREMENTS.] (a) 
378.16  Benefits continued as nonforfeiture benefits, including 
378.17  contingent benefits upon lapse, must be as described in this 
378.18  subdivision. 
378.19     (b) For purposes of this subdivision, "attained age rating" 
378.20  is defined as a schedule of premiums starting from the issue 
378.21  date which increases with age at least one percent per year 
378.22  prior to age 50, and at least three percent per year beyond age 
378.23  50. 
378.24     (c) For purposes of this subdivision, the nonforfeiture 
378.25  benefit must be of a shortened benefit period providing paid-up, 
378.26  long-term care insurance coverage after lapse.  The same 
378.27  benefits, amounts, and frequency in effect at the time of lapse, 
378.28  but not increased thereafter, will be payable for a qualifying 
378.29  claim, but the lifetime maximum dollars or days of benefits must 
378.30  be determined as specified in paragraph (d). 
378.31     (d) The standard nonforfeiture credit will be equal to 100 
378.32  percent of the sum of all premiums paid, including the premiums 
378.33  paid prior to any changes in benefits.  The insurer may offer 
378.34  additional shortened benefit period options, so long as the 
378.35  benefits for each duration equal or exceed the standard 
378.36  nonforfeiture credit for that duration.  However, the minimum 
379.1   nonforfeiture credit must not be less than 30 times the daily 
379.2   nursing home benefit at the time of lapse.  In either event, the 
379.3   calculation of the nonforfeiture credit is subject to the 
379.4   limitation of this subdivision. 
379.5      (e) The nonforfeiture benefit must begin not later than the 
379.6   end of the third year following the policy or certificate issue 
379.7   date.  The contingent benefit upon lapse must be effective 
379.8   during the first three years as well as thereafter. 
379.9      (f) Notwithstanding paragraph (e), for a policy or 
379.10  certificate with attained age rating, the nonforfeiture benefit 
379.11  must begin on the earlier of: 
379.12     (1) the end of the tenth year following the policy or 
379.13  certificate issue date; or 
379.14     (2) the end of the second year following the date the 
379.15  policy or certificate is no longer subject to attained age 
379.16  rating. 
379.17     (g) Nonforfeiture credits may be used for all care and 
379.18  services qualifying for benefits under the terms of the policy 
379.19  or certificate, up to the limits specified in the policy or 
379.20  certificate. 
379.21     Subd. 6.  [BENEFIT LIMIT.] All benefits paid by the insurer 
379.22  while the policy or certificate is in premium-paying status and 
379.23  in the paid-up status will not exceed the maximum benefits which 
379.24  would be payable if the policy or certificate had remained in 
379.25  premium-paying status. 
379.26     Subd. 7.  [MINIMUM BENEFITS; INDIVIDUAL AND GROUP 
379.27  POLICIES.] There must be no difference in the minimum 
379.28  nonforfeiture benefits as required under this section for group 
379.29  and individual policies. 
379.30     Subd. 8.  [APPLICATION; EFFECTIVE DATES.] This section 
379.31  becomes effective January 1, 2002, and applies as follows: 
379.32     (a) Except as provided in paragraph (b), this section 
379.33  applies to any long-term care policy issued in this state on or 
379.34  after the effective date of this section. 
379.35     (b) For certificates issued on or after the effective date 
379.36  of this section, under a group long-term care insurance policy 
380.1   that was in force on the effective date of this section, the 
380.2   provisions of this section do not apply. 
380.3      Subd. 9.  [EFFECT ON LOSS RATIO.] Premiums charged for a 
380.4   policy or certificate containing nonforfeiture benefits or a 
380.5   contingent benefit on lapse are subject to the loss ratio 
380.6   requirements of section 62A.48, subdivision 4, or 62S.26, 
380.7   treating the policy as a whole, except for policies or 
380.8   certificates that are subject to sections 62S.021, 62S.081, and 
380.9   62S.265 and that comply with those sections. 
380.10     Subd. 10.  [PURCHASED BLOCKS OF BUSINESS.] To determine 
380.11  whether contingent nonforfeiture upon lapse provisions are 
380.12  triggered under subdivision 4, paragraph (c), a replacing 
380.13  insurer that purchased or otherwise assumed a block or blocks of 
380.14  long-term care insurance policies from another insurer shall 
380.15  calculate the percentage increase based on the initial annual 
380.16  premium paid by the insured when the policy was first purchased 
380.17  from the original insurer. 
380.18     Subd. 11.  [LEVEL PREMIUM CONTRACTS.] A nonforfeiture 
380.19  benefit for qualified long-term care insurance contracts that 
380.20  are level premium contracts must be offered that meets the 
380.21  following requirements: 
380.22     (1) the nonforfeiture provision must be appropriately 
380.23  captioned; 
380.24     (2) the nonforfeiture provision must provide a benefit 
380.25  available in the event of a default in the payment of any 
380.26  premiums and must state that the amount of the benefit may be 
380.27  adjusted subsequent to being initially granted only as necessary 
380.28  to reflect changes in claims, persistency, and interest as 
380.29  reflected in changes in rates for premium paying contracts 
380.30  approved by the commissioner for the same contract form; and 
380.31     (3) the nonforfeiture provision must provide at least one 
380.32  of the following: 
380.33     (i) reduced paid-up insurance; 
380.34     (ii) extended term insurance; 
380.35     (iii) shortened benefit period; or 
380.36     (iv) other similar offerings approved by the commissioner. 
381.1      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
381.2   following final enactment. 
381.3      Sec. 13.  Minnesota Statutes 2000, section 256.975, is 
381.4   amended by adding a subdivision to read: 
381.5      Subd. 8.  [PROMOTION OF LONG-TERM CARE INSURANCE.] The 
381.6   Minnesota board on aging, either directly or through contract, 
381.7   shall promote the provision of employer-sponsored, long-term 
381.8   care insurance.  The board shall encourage private and public 
381.9   sector employers to make long-term care insurance available to 
381.10  employees, provide interested employers with information on the 
381.11  long-term care insurance product offered to state employees, and 
381.12  provide technical assistance to employers in designing long-term 
381.13  care insurance products and contacting companies offering 
381.14  long-term care insurance products. 
381.15                             ARTICLE 9 
381.16                 MENTAL HEALTH AND CIVIL COMMITMENT 
381.17     Section 1.  [62Q.471] [EXCLUSION FOR SUICIDE ATTEMPTS 
381.18  PROHIBITED.] 
381.19     (a) No health plan may exclude or reduce coverage for 
381.20  health care for an enrollee that is otherwise covered under the 
381.21  health plan, on the basis that the need for the health care 
381.22  arose out of a suicide or suicide attempt by the enrollee. 
381.23     (b) For purposes of this section, "health plan" has the 
381.24  meaning given in section 62Q.01, subdivision 3, but includes the 
381.25  coverages described in section 62A.011, clauses (7) and (10). 
381.26     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 
381.27  2002, and applies to contracts issued or renewed on or after 
381.28  that date. 
381.29     Sec. 2.  [62Q.527] [COVERAGE OF NONFORMULARY DRUGS FOR 
381.30  MENTAL ILLNESS AND EMOTIONAL DISTURBANCE.] 
381.31     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
381.32  section, the following terms have the meanings given to them. 
381.33     (b) "Emotional disturbance" has the meaning given in 
381.34  section 245.4871, subdivision 15. 
381.35     (c) "Mental illness" has the meaning given in section 
381.36  245.462, subdivision 20, paragraph (a). 
382.1      (d) "Health plan" has the meaning given in section 62Q.01, 
382.2   subdivision 3, but includes the coverages described in clauses 
382.3   (7) and (10).  
382.4      Subd. 2.  [REQUIRED COVERAGE.] A health plan that provides 
382.5   prescription drug coverage must provide coverage for an 
382.6   antipsychotic drug prescribed to treat emotional disturbance or 
382.7   mental illness regardless of whether the drug is in the health 
382.8   plan's drug formulary, if the health care provider prescribing 
382.9   the drug: 
382.10     (1) indicates to the dispensing pharmacist, orally or in 
382.11  writing according to section 151.21, that the prescription must 
382.12  be dispensed as communicated; and 
382.13     (2) certifies in writing to the health plan company that 
382.14  the drug prescribed will best treat the patient's condition.  
382.15  The health plan is not required to provide coverage for the drug 
382.16  if the drug was removed from the formulary for safety reasons.  
382.17  For drugs covered under this section, no health plan company, 
382.18  which has received the certification from the health care 
382.19  provider, may: 
382.20     (i) impose a special deductible, copayment, coinsurance, or 
382.21  other special payment requirement that the health plan does not 
382.22  apply to drugs that are in the health plan's drug formulary; or 
382.23     (ii) require written certification from the prescribing 
382.24  provider each time a prescription is refilled or renewed that 
382.25  the drug prescribed will best treat the patient's condition. 
382.26     Subd. 3.  [CONTINUING CARE.] Enrollees receiving a 
382.27  prescribed drug to treat a diagnosed mental illness or emotional 
382.28  disturbance, may continue to receive the prescribed drug without 
382.29  the imposition of a special deductible, copayment, coinsurance, 
382.30  or other special payment requirements, when a health plan's drug 
382.31  formulary changes or an enrollee changes health plans and the 
382.32  medication has been shown to effectively treat the patient's 
382.33  condition.  In order to be eligible for this continuing care 
382.34  benefit: 
382.35     (1) the patient must have been treated with the drug for 90 
382.36  days prior to a change in a health plan's drug formulary or a 
383.1   change in the enrollee's health plan; 
383.2      (2) the health care provider prescribing the drug indicates 
383.3   to the dispensing pharmacist, orally or in writing according to 
383.4   section 151.21, that the prescription must be dispensed as 
383.5   communicated; and 
383.6      (3) annually certifies in writing to the health plan 
383.7   company that the drug prescribed will best treat the patient's 
383.8   condition.  The health plan is not required to provide coverage 
383.9   for the drug if the drug was removed from the formulary for 
383.10  safety reasons.  
383.11     Subd. 4.  [EXCEPTION TO FORMULARY.] A health plan company 
383.12  shall promptly grant an exception to the formulary when the 
383.13  health care provider prescribing the drug conveys to the health 
383.14  plan that: 
383.15     (1) the formulary drug causes an adverse reaction; 
383.16     (2) the formulary drug is contraindicated; or 
383.17     (3) the prescriber demonstrates to the health plan that a 
383.18  prescription drug must be dispensed as written to provide 
383.19  maximum medical benefit to the patient. 
383.20     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
383.21  and applies to contracts issued or renewed on or after that date.
383.22     Sec. 3.  [62Q.535] [COVERAGE FOR COURT-ORDERED MENTAL 
383.23  HEALTH SERVICES.] 
383.24     Subdivision 1.  [MENTAL HEALTH SERVICES.] For purposes of 
383.25  this section, mental health services means all covered services 
383.26  that are intended to treat or ameliorate an emotional, 
383.27  behavioral, or psychiatric condition and that are covered by the 
383.28  policy, contract, or certificate of coverage of the enrollee's 
383.29  health plan company or by law. 
383.30     Subd. 2.  [COVERAGE REQUIRED.] All health plan companies 
383.31  that provide coverage for mental health services must cover or 
383.32  provide mental health services ordered by a court of competent 
383.33  jurisdiction under a court order that is issued on the basis of 
383.34  a behavioral care evaluation performed by a licensed 
383.35  psychiatrist or a doctoral level licensed psychologist, which 
383.36  includes a diagnosis and an individual treatment plan for care 
384.1   in the most appropriate, least restrictive environment.  The 
384.2   health plan company must be given a copy of the court order and 
384.3   the behavioral care evaluation.  The health plan company shall 
384.4   be financially liable for the evaluation if performed by a 
384.5   participating provider of the health plan company and shall be 
384.6   financially liable for the care included in the court-ordered 
384.7   individual treatment plan if the care is covered by the health 
384.8   plan and ordered to be provided by a participating provider or 
384.9   another provider as required by rule or law.  This court-ordered 
384.10  coverage must not be subject to a separate medical necessity 
384.11  determination by a health plan company under its utilization 
384.12  procedures.  
384.13     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
384.14  and applies to contracts issued or renewed on or after that date.
384.15     Sec. 4.  [244.054] [DISCHARGE PLANS; OFFENDERS WITH SERIOUS 
384.16  AND PERSISTENT MENTAL ILLNESS.] 
384.17     Subdivision 1.  [OFFER TO DEVELOP PLAN.] The commissioner 
384.18  of human services, in collaboration with the commissioner of 
384.19  corrections, shall offer to develop a discharge plan for 
384.20  community-based services for every offender with serious and 
384.21  persistent mental illness, as defined in section 245.462, 
384.22  subdivision 20, paragraph (c), who is being released from a 
384.23  correctional facility.  If an offender is being released 
384.24  pursuant to section 244.05, the offender may choose to have the 
384.25  discharge plan made one of the conditions of the offender's 
384.26  supervised release and shall follow the conditions to the extent 
384.27  that services are available and offered to the offender. 
384.28     Subd. 2.  [CONTENT OF PLAN.] If an offender chooses to have 
384.29  a discharge plan developed, the commissioner of human services 
384.30  shall develop and implement a discharge plan, which must include 
384.31  at least the following: 
384.32     (1) at least 90 days before the offender is due to be 
384.33  discharged, the commissioner of human services shall designate 
384.34  an agent of the department of human services with mental health 
384.35  training to serve as the primary person responsible for carrying 
384.36  out discharge planning activities; 
385.1      (2) at least 75 days before the offender is due to be 
385.2   discharged, the offender's designated agent shall: 
385.3      (i) obtain informed consent and releases of information 
385.4   from the offender that are needed for transition services; 
385.5      (ii) contact the county human services department in the 
385.6   community where the offender expects to reside following 
385.7   discharge, and inform the department of the offender's impending 
385.8   discharge and the planned date of the offender's return to the 
385.9   community; determine whether the county or a designated 
385.10  contracted provider will provide case management services to the 
385.11  offender; refer the offender to the case management services 
385.12  provider; and confirm that the case management services provider 
385.13  will have opened the offender's case prior to the offender's 
385.14  discharge; and 
385.15     (iii) refer the offender to appropriate staff in the county 
385.16  human services department in the community where the offender 
385.17  expects to reside following discharge, for enrollment of the 
385.18  offender if eligible in medical assistance or general assistance 
385.19  medical care, using special procedures established by process 
385.20  and department of human services bulletin; 
385.21     (3) at least 2-1/2 months before discharge, the offender's 
385.22  designated agent shall secure timely appointments for the 
385.23  offender with a psychiatrist no later than 30 days following 
385.24  discharge, and with other program staff at a community mental 
385.25  health provider that is able to serve former offenders with 
385.26  serious and persistent mental illness; 
385.27     (4) at least 30 days before discharge, the offender's 
385.28  designated agent shall convene a predischarge assessment and 
385.29  planning meeting of key staff from the programs in which the 
385.30  offender has participated while in the correctional facility, 
385.31  the offender, and the supervising agent assigned to the 
385.32  offender.  At the meeting, attendees shall provide background 
385.33  information and continuing care recommendations for the 
385.34  offender, including information on the offender's risk for 
385.35  relapse; current medications, including dosage and frequency; 
385.36  therapy and behavioral goals; diagnostic and assessment 
386.1   information, including results of a chemical dependency 
386.2   evaluation; confirmation of appointments with a psychiatrist and 
386.3   other program staff in the community; a relapse prevention plan; 
386.4   continuing care needs; needs for housing, employment, and 
386.5   finance support and assistance; and recommendations for 
386.6   successful community integration, including chemical dependency 
386.7   treatment or support if chemical dependency is a risk factor.  
386.8   Immediately following this meeting, the offender's designated 
386.9   agent shall summarize this background information and continuing 
386.10  care recommendations in a written report; 
386.11     (5) immediately following the predischarge assessment and 
386.12  planning meeting, the provider of mental health case management 
386.13  services who will serve the offender following discharge shall 
386.14  offer to make arrangements and referrals for housing, financial 
386.15  support, benefits assistance, employment counseling, and other 
386.16  services required in sections 245.461 to 245.486; 
386.17     (6) at least ten days before the offender's first scheduled 
386.18  postdischarge appointment with a mental health provider, the 
386.19  offender's designated agent shall transfer the following records 
386.20  to the offender's case management services provider and 
386.21  psychiatrist:  the predischarge assessment and planning report, 
386.22  medical records, and pharmacy records.  These records may be 
386.23  transferred only if the offender provides informed consent for 
386.24  their release; 
386.25     (7) upon discharge, the offender's designated agent shall 
386.26  ensure that the offender leaves the correctional facility with 
386.27  at least a ten-day supply of all necessary medications; and 
386.28     (8) upon discharge, the prescribing authority at the 
386.29  offender's correctional facility shall telephone in 
386.30  prescriptions for all necessary medications to a pharmacy in the 
386.31  community where the offender plans to reside.  The prescriptions 
386.32  must provide at least a 30-day supply of all necessary 
386.33  medications, and must be able to be refilled once for one 
386.34  additional 30-day supply. 
386.35     Sec. 5.  [244.25] [TRANSITIONAL SERVICES FOR MENTALLY ILL 
386.36  OFFENDERS RELEASED FROM PRISON; PILOT PROGRAM.] 
387.1      The commissioner of corrections, in collaboration with the 
387.2   commissioner of human services, shall establish a pilot project 
387.3   grant program with goals and evaluation criteria and make grants 
387.4   to provide startup funding for two counties or two groups of 
387.5   counties to provide transitional housing and other community 
387.6   support services for former state inmates who have been 
387.7   diagnosed with a serious mental illness and who have been 
387.8   discharged from prison.  Grant applicants must submit a proposed 
387.9   comprehensive plan for providing the housing and support 
387.10  services and evaluating the provision of services, and must 
387.11  provide a 25 percent funding match.  The commissioner shall make 
387.12  grants available to successful applicants by February 1, 2002.  
387.13  Grant recipients are eligible for funding under this section for 
387.14  the first three years of operation of their programs for housing 
387.15  and support services.  
387.16     Sec. 6.  Minnesota Statutes 2000, section 245.462, is 
387.17  amended by adding a subdivision to read: 
387.18     Subd. 7a.  [CRISIS INTERVENTION SERVICES.] Crisis 
387.19  intervention services are short-term, intensive, nonresidential 
387.20  mental health services that include assessment, mental health 
387.21  rehabilitative services, and a crisis disposition plan.  Crisis 
387.22  intervention services are intended to help the recipient return 
387.23  to a baseline level of functioning or prevent further harmful 
387.24  consequences due to the psychiatric symptoms. 
387.25     Sec. 7.  Minnesota Statutes 2000, section 245.462, is 
387.26  amended by adding a subdivision to read: 
387.27     Subd. 7b.  [CRISIS STABILIZATION SERVICES.] "Crisis 
387.28  stabilization services" is defined in section 256B.0624, 
387.29  subdivision 2, paragraph (e). 
387.30     Sec. 8.  Minnesota Statutes 2000, section 245.462, is 
387.31  amended by adding a subdivision to read: 
387.32     Subd. 14a.  [MENTAL HEALTH CRISIS.] "Mental health crisis" 
387.33  is defined in section 256B.0624, subdivision 2, paragraph (a). 
387.34     Sec. 9.  Minnesota Statutes 2000, section 245.462, is 
387.35  amended by adding a subdivision to read: 
387.36     Subd. 14b.  [MENTAL HEALTH EMERGENCY.] "Mental health 
388.1   emergency" is defined in section 256B.0624, subdivision 2, 
388.2   paragraph (b). 
388.3      Sec. 10.  Minnesota Statutes 2000, section 245.462, is 
388.4   amended by adding a subdivision to read: 
388.5      Subd. 14c.  [MENTAL HEALTH CRISIS SERVICES.] "Mental health 
388.6   crisis services" means crisis assessment, crisis intervention, 
388.7   and crisis stabilization services.  
388.8      Sec. 11.  Minnesota Statutes 2000, section 245.462, 
388.9   subdivision 18, is amended to read: 
388.10     Subd. 18.  [MENTAL HEALTH PROFESSIONAL.] "Mental health 
388.11  professional" means a person providing clinical services in the 
388.12  treatment of mental illness who is qualified in at least one of 
388.13  the following ways:  
388.14     (1) in psychiatric nursing:  a registered nurse who is 
388.15  licensed under sections 148.171 to 148.285, and who is certified 
388.16  as a clinical specialist in adult psychiatric and mental health 
388.17  nursing by a national nurse certification organization or who 
388.18  has a master's degree in nursing or one of the behavioral 
388.19  sciences or related fields from an accredited college or 
388.20  university or its equivalent, with at least 4,000 hours of 
388.21  post-master's supervised experience in the delivery of clinical 
388.22  services in the treatment of mental illness; 
388.23     (2) in clinical social work:  a person licensed as an 
388.24  independent clinical social worker under section 148B.21, 
388.25  subdivision 6, or a person with a master's degree in social work 
388.26  from an accredited college or university, with at least 4,000 
388.27  hours of post-master's supervised experience in the delivery of 
388.28  clinical services in the treatment of mental illness; 
388.29     (3) in psychology:  a psychologist an individual licensed 
388.30  by the board of psychology under sections 148.88 to 148.98 who 
388.31  has stated to the board of psychology competencies in the 
388.32  diagnosis and treatment of mental illness; 
388.33     (4) in psychiatry:  a physician licensed under chapter 147 
388.34  and certified by the American board of psychiatry and neurology 
388.35  or eligible for board certification in psychiatry; 
388.36     (5) in marriage and family therapy:  the mental health 
389.1   professional must be a marriage and family therapist licensed 
389.2   under sections 148B.29 to 148B.39 with at least two years of 
389.3   post-master's supervised experience in the delivery of clinical 
389.4   services in the treatment of mental illness; or 
389.5      (6) in allied fields:  a person with a master's degree from 
389.6   an accredited college or university in one of the behavioral 
389.7   sciences or related fields, with at least 4,000 hours of 
389.8   post-master's supervised experience in the delivery of clinical 
389.9   services in the treatment of mental illness.  
389.10     Sec. 12.  Minnesota Statutes 2000, section 245.466, 
389.11  subdivision 2, is amended to read: 
389.12     Subd. 2.  [ADULT MENTAL HEALTH SERVICES.] The adult mental 
389.13  health service system developed by each county board must 
389.14  include the following services:  
389.15     (1) education and prevention services in accordance with 
389.16  section 245.468; 
389.17     (2) emergency services in accordance with section 245.469; 
389.18     (3) outpatient services in accordance with section 245.470; 
389.19     (4) community support program services in accordance with 
389.20  section 245.4711; 
389.21     (5) residential treatment services in accordance with 
389.22  section 245.472; 
389.23     (6) acute care hospital inpatient treatment services in 
389.24  accordance with section 245.473; 
389.25     (7) regional treatment center inpatient services in 
389.26  accordance with section 245.474; 
389.27     (8) screening in accordance with section 245.476; and 
389.28     (9) case management in accordance with sections 245.462, 
389.29  subdivision 3; and 245.4711; and 
389.30     (10) mental health crisis services in accordance with 
389.31  section 245.470, subdivision 3. 
389.32     Sec. 13.  Minnesota Statutes 2000, section 245.470, is 
389.33  amended by adding a subdivision to read: 
389.34     Subd. 3.  [MENTAL HEALTH CRISIS SERVICES.] County boards 
389.35  must provide or contract for enough mental health crisis 
389.36  services within the county to meet the needs of adults with 
390.1   mental illness residing in the county who are determined, 
390.2   through an assessment by a mental health professional, to be 
390.3   experiencing a mental health crisis or mental health emergency.  
390.4   The mental health crisis services provided must be medically 
390.5   necessary, as defined in section 62Q.53, subdivision 2, and 
390.6   appropriate or socially necessary for the safety of the adult or 
390.7   others regardless of the setting. 
390.8      Sec. 14.  Minnesota Statutes 2000, section 245.474, 
390.9   subdivision 2, is amended to read: 
390.10     Subd. 2.  [QUALITY OF SERVICE.] The commissioner shall 
390.11  biennially determine the needs of all adults with mental illness 
390.12  who are served by regional treatment centers or at any state 
390.13  facility or program as defined in section 246.50, subdivision 3, 
390.14  by administering a client-based evaluation system.  The 
390.15  client-based evaluation system must include at least the 
390.16  following independent measurements:  behavioral development 
390.17  assessment; habilitation program assessment; medical needs 
390.18  assessment; maladaptive behavioral assessment; and vocational 
390.19  behavior assessment.  The commissioner shall propose by rule 
390.20  establish staff ratios to the legislature for the mental health 
390.21  and support units in regional treatment centers as indicated by 
390.22  the results of the client-based evaluation system and the types 
390.23  of state-operated services needed.  The proposed staffing ratios 
390.24  shall include professional, nursing, direct care, medical, 
390.25  clerical, and support staff based on the client-based evaluation 
390.26  system.  The commissioner shall recompute staffing ratios 
390.27  and recommendations amend rules on staff ratios as necessary on 
390.28  a biennial basis.  
390.29     Sec. 15.  Minnesota Statutes 2000, section 245.474, is 
390.30  amended by adding a subdivision to read: 
390.31     Subd. 4.  [STAFF SAFETY TRAINING.] The commissioner shall 
390.32  by rule require all staff in mental health and support units at 
390.33  regional treatment centers who have contact with persons with 
390.34  mental illness or severe emotional disturbance to be 
390.35  appropriately trained in violence reduction and violence 
390.36  prevention, and shall establish criteria for such training.  
391.1   Training programs shall be developed with input from consumer 
391.2   advocacy organizations, and shall employ violence prevention 
391.3   techniques as preferable to physical interaction. 
391.4      Sec. 16.  Minnesota Statutes 2000, section 245.4871, is 
391.5   amended by adding a subdivision to read: 
391.6      Subd. 9b.  [CRISIS INTERVENTION SERVICES.] Crisis 
391.7   intervention services are short-term, intensive, nonresidential 
391.8   mental health services that include assessment, mental health 
391.9   rehabilitative services, and a crisis disposition plan.  Crisis 
391.10  intervention services are intended to help the recipient return 
391.11  to a baseline level of functioning or prevent further harmful 
391.12  consequences due to the psychiatric symptoms. 
391.13     Sec. 17.  Minnesota Statutes 2000, section 245.4871, is 
391.14  amended by adding a subdivision to read: 
391.15     Subd. 9c.  [CRISIS STABILIZATION SERVICES.] "Crisis 
391.16  stabilization services" is defined in section 256B.0624, 
391.17  subdivision 2, paragraph (e). 
391.18     Sec. 18.  Minnesota Statutes 2000, section 245.4871, is 
391.19  amended by adding a subdivision to read: 
391.20     Subd. 24a.  [MENTAL HEALTH CRISIS.] "Mental health crisis" 
391.21  is defined in section 256B.0624, subdivision 2, paragraph (a). 
391.22     Sec. 19.  Minnesota Statutes 2000, section 245.4871, is 
391.23  amended by adding a subdivision to read: 
391.24     Subd. 24b.  [MENTAL HEALTH EMERGENCY.] "Mental health 
391.25  emergency" is defined in section 256B.0624, subdivision 2, 
391.26  paragraph (b). 
391.27     Sec. 20.  Minnesota Statutes 2000, section 245.4871, is 
391.28  amended by adding a subdivision to read: 
391.29     Subd. 24c.  [MENTAL HEALTH CRISIS SERVICES.] "Mental health 
391.30  crisis services" means crisis assessment, crisis intervention, 
391.31  and crisis stabilization services.  
391.32     Sec. 21.  Minnesota Statutes 2000, section 245.4871, 
391.33  subdivision 27, is amended to read: 
391.34     Subd. 27.  [MENTAL HEALTH PROFESSIONAL.] "Mental health 
391.35  professional" means a person providing clinical services in the 
391.36  diagnosis and treatment of children's emotional disorders.  A 
392.1   mental health professional must have training and experience in 
392.2   working with children consistent with the age group to which the 
392.3   mental health professional is assigned.  A mental health 
392.4   professional must be qualified in at least one of the following 
392.5   ways:  
392.6      (1) in psychiatric nursing, the mental health professional 
392.7   must be a registered nurse who is licensed under sections 
392.8   148.171 to 148.285 and who is certified as a clinical specialist 
392.9   in child and adolescent psychiatric or mental health nursing by 
392.10  a national nurse certification organization or who has a 
392.11  master's degree in nursing or one of the behavioral sciences or 
392.12  related fields from an accredited college or university or its 
392.13  equivalent, with at least 4,000 hours of post-master's 
392.14  supervised experience in the delivery of clinical services in 
392.15  the treatment of mental illness; 
392.16     (2) in clinical social work, the mental health professional 
392.17  must be a person licensed as an independent clinical social 
392.18  worker under section 148B.21, subdivision 6, or a person with a 
392.19  master's degree in social work from an accredited college or 
392.20  university, with at least 4,000 hours of post-master's 
392.21  supervised experience in the delivery of clinical services in 
392.22  the treatment of mental disorders; 
392.23     (3) in psychology, the mental health professional must be a 
392.24  psychologist an individual licensed by the board of psychology 
392.25  under sections 148.88 to 148.98 who has stated to the board of 
392.26  psychology competencies in the diagnosis and treatment of mental 
392.27  disorders; 
392.28     (4) in psychiatry, the mental health professional must be a 
392.29  physician licensed under chapter 147 and certified by the 
392.30  American board of psychiatry and neurology or eligible for board 
392.31  certification in psychiatry; 
392.32     (5) in marriage and family therapy, the mental health 
392.33  professional must be a marriage and family therapist licensed 
392.34  under sections 148B.29 to 148B.39 with at least two years of 
392.35  post-master's supervised experience in the delivery of clinical 
392.36  services in the treatment of mental disorders or emotional 
393.1   disturbances; or 
393.2      (6) in allied fields, the mental health professional must 
393.3   be a person with a master's degree from an accredited college or 
393.4   university in one of the behavioral sciences or related fields, 
393.5   with at least 4,000 hours of post-master's supervised experience 
393.6   in the delivery of clinical services in the treatment of 
393.7   emotional disturbances. 
393.8      Sec. 22.  Minnesota Statutes 2000, section 245.4875, 
393.9   subdivision 2, is amended to read: 
393.10     Subd. 2.  [CHILDREN'S MENTAL HEALTH SERVICES.] The 
393.11  children's mental health service system developed by each county 
393.12  board must include the following services:  
393.13     (1) education and prevention services according to section 
393.14  245.4877; 
393.15     (2) mental health identification and intervention services 
393.16  according to section 245.4878; 
393.17     (3) emergency services according to section 245.4879; 
393.18     (4) outpatient services according to section 245.488; 
393.19     (5) family community support services according to section 
393.20  245.4881; 
393.21     (6) day treatment services according to section 245.4884, 
393.22  subdivision 2; 
393.23     (7) residential treatment services according to section 
393.24  245.4882; 
393.25     (8) acute care hospital inpatient treatment services 
393.26  according to section 245.4883; 
393.27     (9) screening according to section 245.4885; 
393.28     (10) case management according to section 245.4881; 
393.29     (11) therapeutic support of foster care according to 
393.30  section 245.4884, subdivision 4; and 
393.31     (12) professional home-based family treatment according to 
393.32  section 245.4884, subdivision 4; and 
393.33     (13) mental health crisis services according to section 
393.34  245.488, subdivision 3. 
393.35     Sec. 23.  Minnesota Statutes 2000, section 245.4876, 
393.36  subdivision 1, is amended to read: 
394.1      Subdivision 1.  [CRITERIA.] Children's mental health 
394.2   services required by sections 245.487 to 245.4888 must be:  
394.3      (1) based, when feasible, on research findings; 
394.4      (2) based on individual clinical, cultural, and ethnic 
394.5   needs, and other special needs of the children being served; 
394.6      (3) delivered in a manner that improves family functioning 
394.7   when clinically appropriate; 
394.8      (4) provided in the most appropriate, least restrictive 
394.9   setting that meets the requirements in subdivision 1a, and that 
394.10  is available to the county board to meet the child's treatment 
394.11  needs; 
394.12     (5) accessible to all age groups of children; 
394.13     (6) appropriate to the developmental age of the child being 
394.14  served; 
394.15     (7) delivered in a manner that provides accountability to 
394.16  the child for the quality of service delivered and continuity of 
394.17  services to the child during the years the child needs services 
394.18  from the local system of care; 
394.19     (8) provided by qualified individuals as required in 
394.20  sections 245.487 to 245.4888; 
394.21     (9) coordinated with children's mental health services 
394.22  offered by other providers; 
394.23     (10) provided under conditions that protect the rights and 
394.24  dignity of the individuals being served; and 
394.25     (11) provided in a manner and setting most likely to 
394.26  facilitate progress toward treatment goals. 
394.27     Sec. 24.  Minnesota Statutes 2000, section 245.4876, is 
394.28  amended by adding a subdivision to read: 
394.29     Subd. 1a.  [APPROPRIATE SETTING TO RECEIVE SERVICES.] A 
394.30  child must be provided with mental health services in the least 
394.31  restrictive setting that is appropriate to the needs and current 
394.32  condition of the individual child.  For a child to receive 
394.33  mental health services in a residential treatment or acute care 
394.34  hospital inpatient setting, the family may not be required to 
394.35  demonstrate that services were first provided in a less 
394.36  restrictive setting and that the child failed to make progress 
395.1   toward or meet treatment goals in the less restrictive setting. 
395.2      Sec. 25.  Minnesota Statutes 2000, section 245.488, is 
395.3   amended by adding a subdivision to read: 
395.4      Subd. 3.  [MENTAL HEALTH CRISIS SERVICES.] County boards 
395.5   must provide or contract for mental health crisis services 
395.6   within the county to meet the needs of children with emotional 
395.7   disturbance residing in the county who are determined, through 
395.8   an assessment by a mental health professional, to be 
395.9   experiencing a mental health crisis or mental health emergency. 
395.10  The mental health crisis services provided must be medically 
395.11  necessary, as defined in section 62Q.53, subdivision 2, and 
395.12  necessary for the safety of the child or others regardless of 
395.13  the setting. 
395.14     Sec. 26.  Minnesota Statutes 2000, section 245.4885, 
395.15  subdivision 1, is amended to read: 
395.16     Subdivision 1.  [SCREENING REQUIRED.] The county board 
395.17  shall, prior to admission, except in the case of emergency 
395.18  admission, screen all children referred for treatment of severe 
395.19  emotional disturbance to a residential treatment facility or 
395.20  informally admitted to a regional treatment center if public 
395.21  funds are used to pay for the services.  The county board shall 
395.22  also screen all children admitted to an acute care hospital for 
395.23  treatment of severe emotional disturbance if public funds other 
395.24  than reimbursement under chapters 256B and 256D are used to pay 
395.25  for the services.  If a child is admitted to a residential 
395.26  treatment facility or acute care hospital for emergency 
395.27  treatment or held for emergency care by a regional treatment 
395.28  center under section 253B.05, subdivision 1, screening must 
395.29  occur within three working days of admission.  Screening shall 
395.30  determine whether the proposed treatment:  
395.31     (1) is necessary; 
395.32     (2) is appropriate to the child's individual treatment 
395.33  needs; 
395.34     (3) cannot be effectively provided in the child's home; and 
395.35     (4) provides a length of stay as short as possible 
395.36  consistent with the individual child's need. 
396.1      When a screening is conducted, the county board may not 
396.2   determine that referral or admission to a residential treatment 
396.3   facility or acute care hospital is not appropriate solely 
396.4   because services were not first provided to the child in a less 
396.5   restrictive setting and the child failed to make progress toward 
396.6   or meet treatment goals in the less restrictive setting.  
396.7   Screening shall include both a diagnostic assessment and a 
396.8   functional assessment which evaluates family, school, and 
396.9   community living situations.  If a diagnostic assessment or 
396.10  functional assessment has been completed by a mental health 
396.11  professional within 180 days, a new diagnostic or functional 
396.12  assessment need not be completed unless in the opinion of the 
396.13  current treating mental health professional the child's mental 
396.14  health status has changed markedly since the assessment was 
396.15  completed.  The child's parent shall be notified if an 
396.16  assessment will not be completed and of the reasons.  A copy of 
396.17  the notice shall be placed in the child's file.  Recommendations 
396.18  developed as part of the screening process shall include 
396.19  specific community services needed by the child and, if 
396.20  appropriate, the child's family, and shall indicate whether or 
396.21  not these services are available and accessible to the child and 
396.22  family.  
396.23     During the screening process, the child, child's family, or 
396.24  child's legal representative, as appropriate, must be informed 
396.25  of the child's eligibility for case management services and 
396.26  family community support services and that an individual family 
396.27  community support plan is being developed by the case manager, 
396.28  if assigned.  
396.29     Screening shall be in compliance with section 256F.07 or 
396.30  260C.212, whichever applies.  Wherever possible, the parent 
396.31  shall be consulted in the screening process, unless clinically 
396.32  inappropriate.  
396.33     The screening process, and placement decision, and 
396.34  recommendations for mental health services must be documented in 
396.35  the child's record.  
396.36     An alternate review process may be approved by the 
397.1   commissioner if the county board demonstrates that an alternate 
397.2   review process has been established by the county board and the 
397.3   times of review, persons responsible for the review, and review 
397.4   criteria are comparable to the standards in clauses (1) to (4). 
397.5      Sec. 27.  Minnesota Statutes 2000, section 245.4886, 
397.6   subdivision 1, is amended to read: 
397.7      Subdivision 1.  [STATEWIDE PROGRAM; ESTABLISHMENT.] The 
397.8   commissioner shall establish a statewide program to assist 
397.9   counties in providing services to children with severe emotional 
397.10  disturbance as defined in section 245.4871, subdivision 15, and 
397.11  their families; and to young adults meeting the criteria for 
397.12  transition services in section 245.4875, subdivision 8, and 
397.13  their families.  Services must be designed to help each child to 
397.14  function and remain with the child's family in the community.  
397.15  Transition services to eligible young adults must be designed to 
397.16  foster independent living in the community.  The commissioner 
397.17  shall make grants to counties to establish, operate, or contract 
397.18  with private providers to provide the following services in the 
397.19  following order of priority when these cannot be reimbursed 
397.20  under section 256B.0625: 
397.21     (1) family community support services including crisis 
397.22  placement and crisis respite care as specified in section 
397.23  245.4871, subdivision 17; 
397.24     (2) case management services as specified in section 
397.25  245.4871, subdivision 3; 
397.26     (3) day treatment services as specified in section 
397.27  245.4871, subdivision 10; 
397.28     (4) professional home-based family treatment as specified 
397.29  in section 245.4871, subdivision 31; and 
397.30     (5) therapeutic support of foster care as specified in 
397.31  section 245.4871, subdivision 34. 
397.32     Funding appropriated beginning July 1, 1991, must be used 
397.33  by county boards to provide family community support services 
397.34  and case management services.  Additional services shall be 
397.35  provided in the order of priority as identified in this 
397.36  subdivision. 
398.1      Sec. 28.  Minnesota Statutes 2000, section 245.99, 
398.2   subdivision 4, is amended to read: 
398.3      Subd. 4.  [ADMINISTRATION OF CRISIS HOUSING ASSISTANCE.] 
398.4   The commissioner may contract with organizations or government 
398.5   units experienced in housing assistance to operate the program 
398.6   under this section.  This program is not an entitlement.  The 
398.7   commissioner may take any of the following steps whenever the 
398.8   commissioner projects that funds will be inadequate to meet 
398.9   demand in a given fiscal year: 
398.10     (1) transfer funds from mental health grants in the same 
398.11  appropriation; and 
398.12     (2) impose statewide restrictions as to the type and amount 
398.13  of assistance available to each recipient under this program, 
398.14  including reducing the income eligibility level, limiting 
398.15  reimbursement to a percentage of each recipient's costs, 
398.16  limiting housing assistance to 60 days per recipient, or closing 
398.17  the program for the remainder of the fiscal year. 
398.18     Sec. 29.  Minnesota Statutes 2000, section 253.28, is 
398.19  amended by adding a subdivision to read: 
398.20     Subd. 1a.  [STATE-OPERATED SERVICES 
398.21  AUTHORIZATION.] According to section 246.0136, the commissioner 
398.22  of human services is authorized to implement, as an enterprise 
398.23  activity, state-operated adult mental health services developed 
398.24  for the purposes of preventing inpatient hospitalization or 
398.25  facilitating the transition from hospital to community 
398.26  placement, that qualify under the standards for adult mental 
398.27  health rehabilitative services in section 256B.0623 and adult 
398.28  mental health crisis response services in section 256B.0624, 
398.29  once those options are incorporated as part of the approved 
398.30  state medical assistance plan. 
398.31     Sec. 30.  Minnesota Statutes 2000, section 253B.02, 
398.32  subdivision 10, is amended to read: 
398.33     Subd. 10.  [INTERESTED PERSON.] "Interested person" means: 
398.34     (1)  an adult, including but not limited to, a public 
398.35  official, including a local welfare agency acting under section 
398.36  626.5561, and the legal guardian, spouse, parent, legal counsel, 
399.1   adult child, next of kin, or other person designated by a 
399.2   proposed patient; or 
399.3      (2) a health plan company. 
399.4      Sec. 31.  Minnesota Statutes 2000, section 253B.03, 
399.5   subdivision 5, is amended to read: 
399.6      Subd. 5.  [PERIODIC ASSESSMENT.] A patient has the right to 
399.7   periodic medical assessment, including assessment of the medical 
399.8   necessity of continuing care and, if the treatment facility 
399.9   declines to provide continuing care, the right to receive 
399.10  specific written reasons why continuing care is declined at the 
399.11  time of the assessment.  The treatment facility shall assess the 
399.12  physical and mental condition of every patient as frequently as 
399.13  necessary, but not less often than annually.  If the patient 
399.14  refuses to be examined, the facility shall document in the 
399.15  patient's chart its attempts to examine the patient.  If a 
399.16  person is committed as mentally retarded for an indeterminate 
399.17  period of time, the three-year judicial review must include the 
399.18  annual reviews for each year as outlined in Minnesota Rules, 
399.19  part 9525.0075, subpart 6.  
399.20     Sec. 32.  Minnesota Statutes 2000, section 253B.03, 
399.21  subdivision 10, is amended to read: 
399.22     Subd. 10.  [NOTIFICATION.] All persons admitted or 
399.23  committed to a treatment facility shall be notified in writing 
399.24  of their rights under this chapter regarding hospitalization and 
399.25  other treatment at the time of admission.  This notification 
399.26  must include: 
399.27     (1) patient rights specified in this section and section 
399.28  144.651, including nursing home discharge rights; 
399.29     (2) the right to obtain treatment and services voluntarily 
399.30  under this chapter; 
399.31     (3) the right to voluntary admission and release under 
399.32  section 253B.04; 
399.33     (4) rights in case of an emergency admission under section 
399.34  253B.05, including the right to documentation in support of an 
399.35  emergency hold and the right to a summary hearing before a judge 
399.36  if the patient believes an emergency hold is improper; 
400.1      (5) the right to request expedited review under section 
400.2   62M.05 if additional days of inpatient stay are denied; 
400.3      (6) the right to continuing benefits pending appeal and to 
400.4   an expedited administrative hearing under section 256.045 if the 
400.5   patient is a recipient of medical assistance, general assistance 
400.6   medical care, or MinnesotaCare; and 
400.7      (7) the right to an external appeal process under section 
400.8   62Q.73, including the right to a second opinion.  
400.9      Sec. 33.  Minnesota Statutes 2000, section 253B.03, is 
400.10  amended by adding a subdivision to read: 
400.11     Subd. 11.  [PROXY.] A legally authorized health care proxy, 
400.12  agent, guardian, or conservator may exercise the patient's 
400.13  rights on the patient's behalf.  
400.14     Sec. 34.  Minnesota Statutes 2000, section 253B.04, 
400.15  subdivision 1, is amended to read: 
400.16     Subdivision 1.  [VOLUNTARY ADMISSION AND TREATMENT.] (a) 
400.17  Voluntary admission is preferred over involuntary commitment and 
400.18  treatment.  Any person 16 years of age or older may request to 
400.19  be admitted to a treatment facility as a voluntary patient for 
400.20  observation, evaluation, diagnosis, care and treatment without 
400.21  making formal written application.  Any person under the age of 
400.22  16 years may be admitted as a patient with the consent of a 
400.23  parent or legal guardian if it is determined by independent 
400.24  examination that there is reasonable evidence that (1) the 
400.25  proposed patient has a mental illness, or is mentally retarded 
400.26  or chemically dependent; and (2) the proposed patient is 
400.27  suitable for treatment.  The head of the treatment facility 
400.28  shall not arbitrarily refuse any person seeking admission as a 
400.29  voluntary patient.  In making decisions regarding admissions, 
400.30  the facility shall use clinical admission criteria consistent 
400.31  with the current applicable inpatient admission standards 
400.32  established by the American Psychiatric Association or the 
400.33  American Academy of Child and Adolescent Psychiatry.  These 
400.34  criteria must be no more restrictive than, and must be 
400.35  consistent with, the requirements of section 62Q.53.  The 
400.36  facility may not refuse to admit a person voluntarily solely 
401.1   because the person does not meet the criteria for involuntary 
401.2   holds under section 253B.05 or the definition of mental illness 
401.3   under section 253B.02, subdivision 13.  
401.4      (b) In addition to the consent provisions of paragraph (a), 
401.5   a person who is 16 or 17 years of age who refuses to consent 
401.6   personally to admission may be admitted as a patient for mental 
401.7   illness or chemical dependency treatment with the consent of a 
401.8   parent or legal guardian if it is determined by an independent 
401.9   examination that there is reasonable evidence that the proposed 
401.10  patient is chemically dependent or has a mental illness and is 
401.11  suitable for treatment.  The person conducting the examination 
401.12  shall notify the proposed patient and the parent or legal 
401.13  guardian of this determination. 
401.14     Sec. 35.  Minnesota Statutes 2000, section 253B.04, 
401.15  subdivision 1a, is amended to read: 
401.16     Subd. 1a.  [VOLUNTARY TREATMENT OR ADMISSION FOR PERSONS 
401.17  WITH MENTAL ILLNESS.] (a) A person with a mental illness may 
401.18  seek or voluntarily agree to accept treatment or admission to a 
401.19  facility.  If the mental health provider determines that the 
401.20  person lacks the capacity to give informed consent for the 
401.21  treatment or admission, and in the absence of a health care 
401.22  power of attorney that authorizes consent, the designated agency 
401.23  or its designee may give informed consent for mental health 
401.24  treatment or admission to a treatment facility on behalf of the 
401.25  person. 
401.26     (b) The designated agency shall apply the following 
401.27  criteria in determining the person's ability to give informed 
401.28  consent: 
401.29     (1) whether the person demonstrates an awareness of the 
401.30  person's illness, and the reasons for treatment, its risks, 
401.31  benefits and alternatives, and the possible consequences of 
401.32  refusing treatment; and 
401.33     (2) whether the person communicates verbally or nonverbally 
401.34  a clear choice concerning treatment that is a reasoned one, not 
401.35  based on delusion, even though it may not be in the person's 
401.36  best interests. 
402.1      (c) The basis for the designated agency's decision that the 
402.2   person lacks the capacity to give informed consent for treatment 
402.3   or admission, and that the patient has voluntarily accepted 
402.4   treatment or admission, must be documented in writing. 
402.5      (d) A mental health provider that provides treatment in 
402.6   reliance on the written consent given by the designated agency 
402.7   under this subdivision or by a substitute decision maker 
402.8   appointed by the court is not civilly or criminally liable for 
402.9   performing treatment without consent.  This paragraph does not 
402.10  affect any other liability that may result from the manner in 
402.11  which the treatment is performed. 
402.12     (e) A person who receives treatment or is admitted to a 
402.13  facility under this subdivision or subdivision 1b has the right 
402.14  to refuse treatment at any time or to be released from a 
402.15  facility as provided under subdivision 2.  The person or any 
402.16  interested person acting on the person's behalf may seek court 
402.17  review within five days for a determination of whether the 
402.18  person's agreement to accept treatment or admission is 
402.19  voluntary.  At the time a person agrees to treatment or 
402.20  admission to a facility under this subdivision, the designated 
402.21  agency or its designee shall inform the person in writing of the 
402.22  person's rights under this paragraph. 
402.23     (f) This subdivision does not authorize the administration 
402.24  of neuroleptic medications.  Neuroleptic medications may be 
402.25  administered only as provided in section 253B.092. 
402.26     Sec. 36.  Minnesota Statutes 2000, section 253B.04, is 
402.27  amended by adding a subdivision to read: 
402.28     Subd. 1b.  [COURT APPOINTMENT OF SUBSTITUTE DECISION 
402.29  MAKER.] If the designated agency or its designee declines or 
402.30  refuses to give informed consent under subdivision 1a, the 
402.31  person who is seeking treatment or admission, or an interested 
402.32  person acting on behalf of the person, may petition the court 
402.33  for appointment of a substitute decision maker who may give 
402.34  informed consent for voluntary treatment and services.  In 
402.35  making this determination, the court shall apply the criteria in 
402.36  subdivision 1a, paragraph (b). 
403.1      Sec. 37.  Minnesota Statutes 2000, section 253B.045, 
403.2   subdivision 6, is amended to read: 
403.3      Subd. 6.  [COVERAGE.] A health plan company must provide 
403.4   coverage, according to the terms of the policy, contract, or 
403.5   certificate of coverage, for all medically necessary covered 
403.6   services as determined by section 62Q.53 provided to an enrollee 
403.7   that are ordered by the court under this chapter.  (a) For 
403.8   purposes of this section, "mental health services" means all 
403.9   covered services that are intended to treat or ameliorate an 
403.10  emotional, behavioral, or psychiatric condition and that are 
403.11  covered by the policy, contract, or certificate of coverage of 
403.12  the enrollee's health plan company or by law. 
403.13     (b) All health plan companies that provide coverage for 
403.14  mental health services must cover or provide mental health 
403.15  services ordered by a court of competent jurisdiction under a 
403.16  court order that is issued on the basis of a behavioral care 
403.17  evaluation performed by a licensed psychiatrist or a doctoral 
403.18  level licensed psychologist, which includes a diagnosis and an 
403.19  individual treatment plan for care in the most appropriate, 
403.20  least restrictive environment.  The health plan company must be 
403.21  given a copy of the court order and the behavioral care 
403.22  evaluation.  The health plan company shall be financially liable 
403.23  for the evaluation if performed by a participating provider of 
403.24  the health plan company and shall be financially liable for the 
403.25  care included in the court-ordered individual treatment plan if 
403.26  the care is covered by the health plan company and ordered to be 
403.27  provided by a participating provider or another provider as 
403.28  required by rule or law.  This court-ordered coverage must not 
403.29  be subject to a separate medical necessity determination by a 
403.30  health plan company under its utilization procedures. 
403.31     Sec. 38.  Minnesota Statutes 2000, section 253B.05, 
403.32  subdivision 1, is amended to read: 
403.33     Subdivision 1.  [EMERGENCY HOLD.] (a) Any person may be 
403.34  admitted or held for emergency care and treatment in a treatment 
403.35  facility with the consent of the head of the treatment facility 
403.36  upon a written statement by an examiner that: 
404.1      (1) the examiner has examined the person not more than 15 
404.2   days prior to admission,; 
404.3      (2) the examiner is of the opinion, for stated reasons, 
404.4   that the person is mentally ill, mentally retarded or chemically 
404.5   dependent, and is in imminent danger of causing injury to self 
404.6   or others if not immediately restrained, detained; and 
404.7      (3) an order of the court cannot be obtained in time to 
404.8   prevent the anticipated injury.  
404.9      (b) If the proposed patient has been brought to the 
404.10  treatment facility by another person, the examiner shall make a 
404.11  good faith effort to obtain a statement of information that is 
404.12  available from that person, which must be taken into 
404.13  consideration in deciding whether to place the proposed patient 
404.14  on an emergency hold.  The statement of information must include 
404.15  direct observations of the proposed patient's behaviors, 
404.16  reliable knowledge of recent and past behavior, and information 
404.17  regarding psychiatric history, past treatment, and current 
404.18  mental health providers.  The examiner shall also inquire into 
404.19  the existence of health care directives under chapter 145, and 
404.20  advance psychiatric directives under section 253B.03, 
404.21  subdivision 6d. 
404.22     (c) The examiner's statement shall be:  (1) sufficient 
404.23  authority for a peace or health officer to transport a patient 
404.24  to a treatment facility, (2) stated in behavioral terms and not 
404.25  in conclusory language, and (3) of sufficient specificity to 
404.26  provide an adequate record for review.  If imminent danger to 
404.27  specific individuals is a basis for the emergency hold, the 
404.28  statement must identify those individuals, to the extent 
404.29  practicable.  A copy of the examiner's statement shall be 
404.30  personally served on the person immediately upon admission and a 
404.31  copy shall be maintained by the treatment facility.  
404.32     Sec. 39.  Minnesota Statutes 2000, section 253B.07, 
404.33  subdivision 1, is amended to read: 
404.34     Subdivision 1.  [PREPETITION SCREENING.] (a) Prior to 
404.35  filing a petition for commitment of or early intervention for a 
404.36  proposed patient, an interested person shall apply to the 
405.1   designated agency in the county of the proposed patient's 
405.2   residence or presence for conduct of a preliminary 
405.3   investigation, except when the proposed patient has been 
405.4   acquitted of a crime under section 611.026 and the county 
405.5   attorney is required to file a petition for commitment.  The 
405.6   designated agency shall appoint a screening team to conduct an 
405.7   investigation which shall include.  The petitioner may not be a 
405.8   member of the screening team.  The investigation must include: 
405.9      (i) a personal interview with the proposed patient and 
405.10  other individuals who appear to have knowledge of the condition 
405.11  of the proposed patient.  If the proposed patient is not 
405.12  interviewed, specific reasons must be documented; 
405.13     (ii) identification and investigation of specific alleged 
405.14  conduct which is the basis for application; 
405.15     (iii) identification, exploration, and listing of 
405.16  the specific reasons for rejecting or recommending alternatives 
405.17  to involuntary placement; 
405.18     (iv) in the case of a commitment based on mental illness, 
405.19  the following information, if it is known or available:  
405.20  information, that may be relevant to the administration of 
405.21  neuroleptic medications, if necessary, including the existence 
405.22  of a declaration under section 253B.03, subdivision 6d, or a 
405.23  health care directive under chapter 145C or a guardian, 
405.24  conservator, proxy, or agent with authority to make health care 
405.25  decisions for the proposed patient; information regarding the 
405.26  capacity of the proposed patient to make decisions regarding 
405.27  administration of neuroleptic medication; and whether the 
405.28  proposed patient is likely to consent or refuse consent to 
405.29  administration of the medication; and 
405.30     (v) seeking input from the proposed patient's health plan 
405.31  company to provide the court with information about services the 
405.32  enrollee needs and the least restrictive alternatives. 
405.33     (vi) in the case of a commitment based on mental illness, 
405.34  information listed in clause (iv) for other purposes relevant to 
405.35  treatment. 
405.36     (b) In conducting the investigation required by this 
406.1   subdivision, the screening team shall have access to all 
406.2   relevant medical records of proposed patients currently in 
406.3   treatment facilities.  Data collected pursuant to this clause 
406.4   shall be considered private data on individuals.  The 
406.5   prepetition screening report is not admissible as evidence 
406.6   except by agreement of counsel and is not admissible in any 
406.7   court proceedings unrelated to the commitment proceedings. 
406.8      (c) The prepetition screening team shall provide a notice, 
406.9   written in easily understood language, to the proposed patient, 
406.10  the petitioner, persons named in a declaration under chapter 
406.11  145C or section 253B.03, subdivision 6d, and, with the proposed 
406.12  patient's consent, other interested parties.  The team shall ask 
406.13  the patient if the patient wants the notice read and shall read 
406.14  the notice to the patient upon request.  The notice must contain 
406.15  information regarding the process, purpose, and legal effects of 
406.16  civil commitment and early intervention.  The notice must inform 
406.17  the proposed patient that: 
406.18     (1) if a petition is filed, the patient has certain rights, 
406.19  including the right to a court-appointed attorney, the right to 
406.20  request a second examiner, the right to attend hearings, and the 
406.21  right to oppose the proceeding and to present and contest 
406.22  evidence; and 
406.23     (2) if the proposed patient is committed to a state 
406.24  regional treatment center or group home, the patient will be 
406.25  billed for the cost of care and the state has the right to make 
406.26  a claim against the patient's estate for this cost. 
406.27     The ombudsman for mental health and mental retardation 
406.28  shall develop a form for the notice, which includes the 
406.29  requirements of this paragraph.  
406.30     (d) When the prepetition screening team recommends 
406.31  commitment, a written report shall be sent to the county 
406.32  attorney for the county in which the petition is to be 
406.33  filed.  The statement of facts contained in the written report 
406.34  must meet the requirements of subdivision 2, paragraph (b). 
406.35     (d) (e) The prepetition screening team shall refuse to 
406.36  support a petition if the investigation does not disclose 
407.1   evidence sufficient to support commitment.  Notice of the 
407.2   prepetition screening team's decision shall be provided to the 
407.3   prospective petitioner and to the proposed patient.  
407.4      (e) (f) If the interested person wishes to proceed with a 
407.5   petition contrary to the recommendation of the prepetition 
407.6   screening team, application may be made directly to the county 
407.7   attorney, who may shall determine whether or not to proceed with 
407.8   the petition.  Notice of the county attorney's determination 
407.9   shall be provided to the interested party.  
407.10     (f) (g) If the proposed patient has been acquitted of a 
407.11  crime under section 611.026, the county attorney shall apply to 
407.12  the designated county agency in the county in which the 
407.13  acquittal took place for a preliminary investigation unless 
407.14  substantially the same information relevant to the proposed 
407.15  patient's current mental condition, as could be obtained by a 
407.16  preliminary investigation, is part of the court record in the 
407.17  criminal proceeding or is contained in the report of a mental 
407.18  examination conducted in connection with the criminal 
407.19  proceeding.  If a court petitions for commitment pursuant to the 
407.20  rules of criminal or juvenile procedure or a county attorney 
407.21  petitions pursuant to acquittal of a criminal charge under 
407.22  section 611.026, the prepetition investigation, if required by 
407.23  this section, shall be completed within seven days after the 
407.24  filing of the petition.  
407.25     Sec. 40.  Minnesota Statutes 2000, section 253B.09, 
407.26  subdivision 1, is amended to read: 
407.27     Subdivision 1.  [STANDARD OF PROOF.] (a) If the court finds 
407.28  by clear and convincing evidence that the proposed patient is a 
407.29  mentally ill, mentally retarded, or chemically dependent person 
407.30  and after careful consideration of reasonable alternative 
407.31  dispositions, including but not limited to, dismissal of 
407.32  petition, voluntary outpatient care, voluntary admission to a 
407.33  treatment facility, appointment of a guardian or conservator, or 
407.34  release before commitment as provided for in subdivision 4, it 
407.35  finds that there is no suitable alternative to judicial 
407.36  commitment, the court shall commit the patient to the least 
408.1   restrictive treatment program or alternative programs which can 
408.2   meet the patient's treatment needs consistent with section 
408.3   253B.03, subdivision 7.  
408.4      (b) In deciding on the least restrictive program, the court 
408.5   shall consider a range of treatment alternatives including, but 
408.6   not limited to, community-based nonresidential treatment, 
408.7   community residential treatment, partial hospitalization, acute 
408.8   care hospital, and regional treatment center services.  The 
408.9   court shall also consider the proposed patient's treatment 
408.10  preferences and willingness to participate voluntarily in the 
408.11  treatment ordered.  The court may not commit a patient to a 
408.12  facility or program that is not capable of meeting the patient's 
408.13  needs.  
408.14     (c) For purposes of findings under this chapter, none of 
408.15  the following constitute a refusal to accept appropriate mental 
408.16  health treatment: 
408.17     (1) a willingness to take medication but a reasonable 
408.18  disagreement about type or dosage; 
408.19     (2) a good-faith effort to follow a reasonable alternative 
408.20  treatment plan, including treatment as specified in a valid 
408.21  advance directive under chapter 145C or section 253B.03, 
408.22  subdivision 6d; 
408.23     (3) an inability to obtain access to appropriate treatment 
408.24  because of inadequate health care coverage or an insurer's 
408.25  refusal or delay in providing coverage for the treatment; or 
408.26     (4) an inability to obtain access to needed mental health 
408.27  services because the provider will only accept patients who are 
408.28  under a court order or because the provider gives persons under 
408.29  a court order a priority over voluntary patients in obtaining 
408.30  treatment and services.  
408.31     Sec. 41.  Minnesota Statutes 2000, section 253B.10, 
408.32  subdivision 4, is amended to read: 
408.33     Subd. 4.  [PRIVATE TREATMENT.] Patients or other 
408.34  responsible persons are required to pay the necessary charges 
408.35  for patients committed or transferred to private treatment 
408.36  facilities.  Private treatment facilities may refuse to accept a 
409.1   committed person.  Insurers must provide court-ordered treatment 
409.2   and services as ordered by the court under section 253B.045, 
409.3   subdivision 6, or as required under chapter 62M. 
409.4      Sec. 42.  Minnesota Statutes 2000, section 256.969, 
409.5   subdivision 3a, is amended to read: 
409.6      Subd. 3a.  [PAYMENTS.] Acute care hospital billings under 
409.7   the medical assistance program must not be submitted until the 
409.8   recipient is discharged.  However, the commissioner shall 
409.9   establish monthly interim payments for inpatient hospitals that 
409.10  have individual patient lengths of stay over 30 days regardless 
409.11  of diagnostic category.  Except as provided in section 256.9693, 
409.12  medical assistance reimbursement for treatment of mental illness 
409.13  shall be reimbursed based on diagnostic classifications.  The 
409.14  commissioner may selectively contract with hospitals for 
409.15  services within the diagnostic categories relating to mental 
409.16  illness and chemical dependency under competitive bidding when 
409.17  reasonable geographic access by recipients can be assured.  No 
409.18  physician shall be denied the privilege of treating a recipient 
409.19  required to use a hospital under contract with the commissioner, 
409.20  as long as the physician meets credentialing standards of the 
409.21  individual hospital.  Individual hospital payments established 
409.22  under this section and sections 256.9685, 256.9686, and 
409.23  256.9695, in addition to third party and recipient liability, 
409.24  for discharges occurring during the rate year shall not exceed, 
409.25  in aggregate, the charges for the medical assistance covered 
409.26  inpatient services paid for the same period of time to the 
409.27  hospital.  This payment limitation shall be calculated 
409.28  separately for medical assistance and general assistance medical 
409.29  care services.  The limitation on general assistance medical 
409.30  care shall be effective for admissions occurring on or after 
409.31  July 1, 1991.  Services that have rates established under 
409.32  subdivision 11 or 12, must be limited separately from other 
409.33  services.  After consulting with the affected hospitals, the 
409.34  commissioner may consider related hospitals one entity and may 
409.35  merge the payment rates while maintaining separate provider 
409.36  numbers.  The operating and property base rates per admission or 
410.1   per day shall be derived from the best Medicare and claims data 
410.2   available when rates are established.  The commissioner shall 
410.3   determine the best Medicare and claims data, taking into 
410.4   consideration variables of recency of the data, audit 
410.5   disposition, settlement status, and the ability to set rates in 
410.6   a timely manner.  The commissioner shall notify hospitals of 
410.7   payment rates by December 1 of the year preceding the rate 
410.8   year.  The rate setting data must reflect the admissions data 
410.9   used to establish relative values.  Base year changes from 1981 
410.10  to the base year established for the rate year beginning January 
410.11  1, 1991, and for subsequent rate years, shall not be limited to 
410.12  the limits ending June 30, 1987, on the maximum rate of increase 
410.13  under subdivision 1.  The commissioner may adjust base year 
410.14  cost, relative value, and case mix index data to exclude the 
410.15  costs of services that have been discontinued by the October 1 
410.16  of the year preceding the rate year or that are paid separately 
410.17  from inpatient services.  Inpatient stays that encompass 
410.18  portions of two or more rate years shall have payments 
410.19  established based on payment rates in effect at the time of 
410.20  admission unless the date of admission preceded the rate year in 
410.21  effect by six months or more.  In this case, operating payment 
410.22  rates for services rendered during the rate year in effect and 
410.23  established based on the date of admission shall be adjusted to 
410.24  the rate year in effect by the hospital cost index. 
410.25     Sec. 43.  [256.9693] [CONTINUING CARE PROGRAM FOR PERSONS 
410.26  WITH MENTAL ILLNESS.] 
410.27     The commissioner shall establish a continuing care benefit 
410.28  program for persons with mental illness in which persons with 
410.29  mental illness may obtain acute care hospital inpatient 
410.30  treatment for mental illness for up to 45 days beyond that 
410.31  allowed by section 256.969.  Persons with mental illness who are 
410.32  eligible for medical assistance may obtain inpatient treatment 
410.33  under this program in hospital beds for which the commissioner 
410.34  contracts under this section.  The commissioner may selectively 
410.35  contract with hospitals to provide this benefit through 
410.36  competitive bidding when reasonable geographic access by 
411.1   recipients can be assured.  Payments under this section shall 
411.2   not affect payments under section 256.969.  The commissioner may 
411.3   contract externally with a utilization review organization to 
411.4   authorize persons with mental illness to access the continuing 
411.5   care benefit program.  The commissioner shall, as part of the 
411.6   contracting process, establish admission criteria to allow 
411.7   persons with mental illness to access the continuing care 
411.8   benefit program.  If a court orders acute care hospital 
411.9   inpatient treatment for mental illness for a person, the person 
411.10  may obtain the treatment under the continuing care benefit 
411.11  program.  The commissioner shall not require, as part of the 
411.12  admission criteria, any commitment or petition under chapter 
411.13  253B as a condition of accessing the program.  This benefit is 
411.14  not available for people who are also eligible for Medicare and 
411.15  who have not exhausted their annual or lifetime inpatient 
411.16  psychiatric benefit under Medicare.  If the recipient is 
411.17  enrolled in a prepaid health plan, this benefit is included in 
411.18  the health plan's coverage. 
411.19     Sec. 44.  [256B.0623] [ADULT REHABILITATIVE MENTAL HEALTH 
411.20  SERVICES.] 
411.21     Subdivision 1.  [SCOPE.] Medical assistance covers adult 
411.22  rehabilitative mental health services as defined in subdivision 
411.23  2, subject to federal approval, if provided to recipients as 
411.24  defined in subdivision 3 and provided by a qualified provider 
411.25  entity meeting the standards in this section and by a qualified 
411.26  individual provider working within the provider's scope of 
411.27  practice and identified in the recipient's individual treatment 
411.28  plan as defined in section 245.462, subdivision 14, and if 
411.29  determined to be medically necessary according to section 62Q.53.
411.30     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
411.31  following terms have the meanings given them. 
411.32     (a) "Adult rehabilitative mental health services" means 
411.33  mental health services which are rehabilitative and enable the 
411.34  recipient to develop and enhance psychiatric stability, social 
411.35  competencies, personal and emotional adjustment, and independent 
411.36  living and community skills, when these abilities are impaired 
412.1   by the symptoms of mental illness.  Adult rehabilitative mental 
412.2   health services are also appropriate when provided to enable a 
412.3   recipient to retain stability and functioning, if the recipient 
412.4   would be at risk of significant functional decompensation or 
412.5   more restrictive service settings without these services. 
412.6      (1) Adult rehabilitative mental health services instruct, 
412.7   assist, and support the recipient in areas such as:  
412.8   interpersonal communication skills, community resource 
412.9   utilization and integration skills, crisis assistance, relapse 
412.10  prevention skills, health care directives, budgeting and 
412.11  shopping skills, healthy lifestyle skills and practices, cooking 
412.12  and nutrition skills, transportation skills, medication 
412.13  education and monitoring, mental illness symptom management 
412.14  skills, household management skills, employment-related skills, 
412.15  and transition to community living services. 
412.16     (2) These services shall be provided to the recipient on a 
412.17  one-to-one basis in the recipient's home or another community 
412.18  setting or in groups. 
412.19     (b) "Medication education services" means services provided 
412.20  individually or in groups which focus on educating the recipient 
412.21  about mental illness and symptoms; the role and effects of 
412.22  medications in treating symptoms of mental illness; and the side 
412.23  effects of medications.  Medication education is coordinated 
412.24  with medication management services, and does not duplicate it.  
412.25  Medication education services are provided by physicians, 
412.26  pharmacists, or registered nurses. 
412.27     (c) "Transition to community living services" means 
412.28  services which maintain continuity of contact between the 
412.29  rehabilitation services provider and the recipient and which 
412.30  facilitate discharge from a hospital, residential treatment 
412.31  program under Minnesota Rules, chapter 9505, board and lodging 
412.32  facility, or nursing home. Transition to community living 
412.33  services are not intended to provide other areas of adult 
412.34  rehabilitative mental health services.  
412.35     Subd. 3.  [ELIGIBILITY.] An eligible recipient is an 
412.36  individual who: 
413.1      (1) is age 18 or older; 
413.2      (2) is diagnosed with a medical condition, such as mental 
413.3   illness or traumatic brain injury, for which adult 
413.4   rehabilitative mental health services are needed; 
413.5      (3) has substantial disability and functional impairment in 
413.6   three or more of the areas listed in section 245.462, 
413.7   subdivision 11a, so that self-sufficiency is markedly reduced; 
413.8   and 
413.9      (4) has had a recent diagnostic assessment by a qualified 
413.10  professional that documents adult rehabilitative mental health 
413.11  services are medically necessary to address identified 
413.12  disability and functional impairments and individual recipient 
413.13  goals. 
413.14     Subd. 4.  [PROVIDER ENTITY STANDARDS.] (a) The provider 
413.15  entity must be: 
413.16     (1) a county operated entity certified by the state; or 
413.17     (2) a noncounty entity certified by the entity's host 
413.18  county. 
413.19     (b) The certification process is a determination as to 
413.20  whether the entity meets the standards in this subdivision.  The 
413.21  certification must specify which adult rehabilitative mental 
413.22  health services the entity is qualified to provide. 
413.23     (c) If an entity seeks to provide services outside its host 
413.24  county, it must obtain additional certification from each county 
413.25  in which it will provide services.  The additional certification 
413.26  must be based on the adequacy of the entity's knowledge of that 
413.27  county's local health and human service system, and the ability 
413.28  of the entity to coordinate its services with the other services 
413.29  available in that county. 
413.30     (d) Recertification must occur at least every two years. 
413.31     (e) The commissioner may intervene at any time and 
413.32  decertify providers with cause.  The decertification is subject 
413.33  to appeal to the state.  A county board may recommend that the 
413.34  state decertify a provider for cause. 
413.35     (f) The adult rehabilitative mental health services 
413.36  provider entity must meet the following standards: 
414.1      (1) have capacity to recruit, hire, manage, and train 
414.2   mental health professionals, mental health practitioners, and 
414.3   mental health rehabilitation workers; 
414.4      (2) have adequate administrative ability to ensure 
414.5   availability of services; 
414.6      (3) ensure adequate preservice and inservice training for 
414.7   staff; 
414.8      (4) ensure that mental health professionals, mental health 
414.9   practitioners, and mental health rehabilitation workers are 
414.10  skilled in the delivery of the specific adult rehabilitative 
414.11  mental health services provided to the individual eligible 
414.12  recipient; 
414.13     (5) ensure that staff is capable of implementing culturally 
414.14  specific services that are culturally competent and appropriate 
414.15  as determined by the recipient's culture, beliefs, values, and 
414.16  language as identified in the individual treatment plan; 
414.17     (6) ensure enough flexibility in service delivery to 
414.18  respond to the changing and intermittent care needs of a 
414.19  recipient as identified by the recipient and the individual 
414.20  treatment plan; 
414.21     (7) ensure that the mental health professional or mental 
414.22  health practitioner, who is under the clinical supervision of a 
414.23  mental health professional, involved in a recipient's services 
414.24  participates in the development of the individual treatment 
414.25  plan; 
414.26     (8) assist the recipient in arranging needed crisis 
414.27  assessment, intervention, and stabilization services; 
414.28     (9) ensure that services are coordinated with other 
414.29  recipient mental health services providers and the county mental 
414.30  health authority and the federally recognized American Indian 
414.31  authority and necessary others after obtaining the consent of 
414.32  the recipient.  Services must also be coordinated with the 
414.33  recipient's case manager or care coordinator, if the recipient 
414.34  is receiving case management or care coordination services; 
414.35     (10) develop and maintain recipient files, individual 
414.36  treatment plans, and contact charting; 
415.1      (11) develop and maintain staff training and personnel 
415.2   files; 
415.3      (12) submit information as required by the state; 
415.4      (13) establish and maintain a quality assurance plan to 
415.5   evaluate the outcome of services provided; 
415.6      (14) keep all necessary records required by law; 
415.7      (15) deliver services as required by section 245.461; 
415.8      (16) comply with all applicable laws; 
415.9      (17) be an enrolled Medicaid provider; 
415.10     (18) maintain a quality assurance plan to determine 
415.11  specific service outcomes and the recipient's satisfaction with 
415.12  services; and 
415.13     (19) develop and maintain written policies and procedures 
415.14  regarding service provision and administration of the provider 
415.15  entity. 
415.16     (g) The commissioner shall develop statewide procedures for 
415.17  provider certification, including timelines for counties to 
415.18  certify qualified providers. 
415.19     Subd. 5.  [QUALIFICATIONS OF PROVIDER STAFF.] Adult 
415.20  rehabilitative mental health services must be provided by 
415.21  qualified individual provider staff of a certified provider 
415.22  entity.  Individual provider staff must be qualified under one 
415.23  of the following criteria: 
415.24     (1) a mental health professional as defined in section 
415.25  245.462, subdivision 18, clauses (1) to (5); 
415.26     (2) a mental health practitioner as defined in section 
415.27  245.462, subdivision 17.  The mental health practitioner must 
415.28  work under the clinical supervision of a mental health 
415.29  professional; or 
415.30     (3) a mental health rehabilitation worker.  A mental health 
415.31  rehabilitation worker means a staff person working under the 
415.32  direction of a mental health practitioner or mental health 
415.33  professional, and under the clinical supervision of a mental 
415.34  health professional in the implementation of rehabilitative 
415.35  mental health services as identified in the recipient's 
415.36  individual treatment plan; and who: 
416.1      (i) is at least 21 years of age; 
416.2      (ii) has a high school diploma or equivalent; 
416.3      (iii) has successfully completed 30 hours of training 
416.4   during the past two years in all of the following areas:  
416.5   recipient rights, recipient-centered individual treatment 
416.6   planning, behavioral terminology, mental illness, co-occurring 
416.7   mental illness and substance abuse, psychotropic medications and 
416.8   side effects, functional assessment, local community resources, 
416.9   adult vulnerability, recipient confidentiality; and 
416.10     (iv) meets the qualifications in (A) or (B): 
416.11     (A) has an associate of arts degree in one of the 
416.12  behavioral sciences or human services, or is a registered nurse 
416.13  without a bachelor's degree, or who within the previous ten 
416.14  years has:  
416.15     (1) three years of personal life experience with serious 
416.16  and persistent mental illness; 
416.17     (2) three years of life experience as a primary caregiver 
416.18  to an adult with a serious mental illness or traumatic brain 
416.19  injury; or 
416.20     (3) 4,000 hours of supervised paid work experience in the 
416.21  delivery of mental health services to adults with a serious 
416.22  mental illness or traumatic brain injury; or 
416.23     (B)(1) be fluent in the non-English language or competent 
416.24  in the culture of the ethnic group to which at least 50 percent 
416.25  of the mental health rehabilitation worker's clients belong; 
416.26     (2) receives during the first 2,000 hours of work, monthly 
416.27  documented individual clinical supervision by a mental health 
416.28  professional; 
416.29     (3) has 18 hours of documented field supervision by a 
416.30  mental health professional or practitioner during the first 160 
416.31  hours of contact work with recipients, and at least six hours of 
416.32  field supervision quarterly during the following year; 
416.33     (4) has review and cosignature of charting of recipient 
416.34  contacts during field supervision by a mental health 
416.35  professional or practitioner; and 
416.36     (5) has 40 hours of additional continuing education on 
417.1   mental health topics during the first year of employment. 
417.2      Subd. 6.  [REQUIRED TRAINING AND SUPERVISION.] (a) Mental 
417.3   health rehabilitation workers must receive ongoing continuing 
417.4   education training of at least 30 hours every two years in areas 
417.5   of mental illness and mental health services and other areas 
417.6   specific to the population being served.  Mental health 
417.7   rehabilitation workers must also be subject to the ongoing 
417.8   direction and clinical supervision standards in paragraphs (c) 
417.9   and (d). 
417.10     (b) Mental health practitioners must receive ongoing 
417.11  continuing education training as required by their professional 
417.12  license; or if the practitioner is not licensed, the 
417.13  practitioner must receive ongoing continuing education training 
417.14  of at least 30 hours every two years in areas of mental illness 
417.15  and mental health services.  Mental health practitioners must 
417.16  meet the ongoing clinical supervision standards in paragraph (c).
417.17     (c) A mental health professional providing clinical 
417.18  supervision of staff delivering adult rehabilitative mental 
417.19  health services must provide the following guidance: 
417.20     (1) review the information in the recipient's file; 
417.21     (2) review and approve initial and updates of individual 
417.22  treatment plans; 
417.23     (3) meet with mental health rehabilitation workers and 
417.24  practitioners, individually or in small groups, at least monthly 
417.25  to discuss treatment topics of interest to the workers and 
417.26  practitioners; 
417.27     (4) meet with mental health rehabilitation workers and 
417.28  practitioners, individually or in small groups, at least monthly 
417.29  to discuss treatment plans of recipients, and approve by 
417.30  signature and document in the recipient's file any resulting 
417.31  plan updates; 
417.32     (5) meet at least twice a month with the directing mental 
417.33  health practitioner, if there is one, to review needs of the 
417.34  adult rehabilitative mental health services program, review 
417.35  staff on-site observations and evaluate mental health 
417.36  rehabilitation workers, plan staff training, review program 
418.1   evaluation and development, and consult with the directing 
418.2   practitioner; 
418.3      (6) be available for urgent consultation as the individual 
418.4   recipient needs or the situation necessitates; and 
418.5      (7) provide clinical supervision by full- or part-time 
418.6   mental health professionals employed by or under contract with 
418.7   the provider entity. 
418.8      (d) An adult rehabilitative mental health services provider 
418.9   entity must have a treatment director who is a mental health 
418.10  practitioner or mental health professional.  The treatment 
418.11  director must ensure the following: 
418.12     (1) while delivering direct services to recipients, a newly 
418.13  hired mental health rehabilitation worker must be directly 
418.14  observed delivering services to recipients by the mental health 
418.15  practitioner or mental health professional for at least six 
418.16  hours per 40 hours worked during the first 160 hours that the 
418.17  mental health rehabilitation worker works; 
418.18     (2) the mental health rehabilitation worker must receive 
418.19  ongoing on-site direct service observation by a mental health 
418.20  professional or mental health practitioner for at least six 
418.21  hours for every six months of employment; 
418.22     (3) progress notes are reviewed from on-site service 
418.23  observation prepared by the mental health rehabilitation worker 
418.24  and mental health practitioner for accuracy and consistency with 
418.25  actual recipient contact and the individual treatment plan and 
418.26  goals; 
418.27     (4) immediate availability by phone or in person for 
418.28  consultation by a mental health professional or a mental health 
418.29  practitioner to the mental health rehabilitation services worker 
418.30  during service provision; 
418.31     (5) oversee the identification of changes in individual 
418.32  recipient treatment strategies, revise the plan and communicate 
418.33  treatment instructions and methodologies as appropriate to 
418.34  ensure that treatment is implemented correctly; 
418.35     (6) model service practices which:  respect the recipient, 
418.36  include the recipient in planning and implementation of the 
419.1   individual treatment plan, recognize the recipient's strengths, 
419.2   collaborate and coordinate with other involved parties and 
419.3   providers; 
419.4      (7) ensure that mental health practitioners and mental 
419.5   health rehabilitation workers are able to effectively 
419.6   communicate with the recipients, significant others, and 
419.7   providers; and 
419.8      (8) oversee the record of the results of on-site 
419.9   observation and charting evaluation and corrective actions taken 
419.10  to modify the work of the mental health practitioners and mental 
419.11  health rehabilitation workers. 
419.12     (e) A mental health practitioner who is providing treatment 
419.13  direction for a provider entity must receive supervision at 
419.14  least monthly from a mental health professional to: 
419.15     (1) identify and plan for general needs of the recipient 
419.16  population served; 
419.17     (2) identify and plan to address provider entity program 
419.18  needs and effectiveness; 
419.19     (3) identify and plan provider entity staff training and 
419.20  personnel needs and issues; and 
419.21     (4) plan, implement, and evaluate provider entity quality 
419.22  improvement programs.  
419.23     Subd. 7.  [PERSONNEL FILE.] The adult rehabilitative mental 
419.24  health services provider entity must maintain a personnel file 
419.25  on each staff.  Each file must contain: 
419.26     (1) an annual performance review; 
419.27     (2) a summary of on-site service observations and charting 
419.28  review; 
419.29     (3) a criminal background check of all direct service 
419.30  staff; 
419.31     (4) evidence of academic degree and qualifications; 
419.32     (5) a copy of professional license; 
419.33     (6) any job performance recognition and disciplinary 
419.34  actions; 
419.35     (7) any individual staff written input into own personnel 
419.36  file; 
420.1      (8) all clinical supervision provided; and 
420.2      (9) documentation of compliance with continuing education 
420.3   requirements. 
420.4      Subd. 8.  [DIAGNOSTIC ASSESSMENT.] Providers of adult 
420.5   rehabilitative mental health services must complete a diagnostic 
420.6   assessment as defined in section 245.462, subdivision 9, within 
420.7   five days after the recipient's second visit or within 30 days 
420.8   after intake, whichever occurs first.  In cases where a 
420.9   diagnostic assessment is available that reflects the recipient's 
420.10  current status, and has been completed within 180 days preceding 
420.11  admission, an update must be completed.  An update shall include 
420.12  a written summary by a mental health professional of the 
420.13  recipient's current mental health status and service needs.  If 
420.14  the recipient's mental health status has changed significantly 
420.15  since the adult's most recent diagnostic assessment, a new 
420.16  diagnostic assessment is required. 
420.17     Subd. 9.  [FUNCTIONAL ASSESSMENT.] Providers of adult 
420.18  rehabilitative mental health services must complete a written 
420.19  functional assessment as defined in section 245.462, subdivision 
420.20  11a, for each recipient.  The functional assessment must be 
420.21  completed within 30 days of intake, and reviewed and updated at 
420.22  least every six months after it is developed, unless there is a 
420.23  significant change in the functioning of the recipient.  If 
420.24  there is a significant change in functioning, the assessment 
420.25  must be updated.  A single functional assessment can meet case 
420.26  management and adult rehabilitative mental health services 
420.27  requirements, if agreed to by the recipient.  Unless the 
420.28  recipient refuses, the recipient must have significant 
420.29  participation in the development of the functional assessment. 
420.30     Subd. 10.  [INDIVIDUAL TREATMENT PLAN.] All providers of 
420.31  adult rehabilitative mental health services must develop and 
420.32  implement an individual treatment plan for each recipient.  The 
420.33  provisions in clauses (1) and (2) apply: 
420.34     (1) Individual treatment plan means a plan of intervention, 
420.35  treatment, and services for an individual recipient written by a 
420.36  mental health professional or by a mental health practitioner 
421.1   under the clinical supervision of a mental health professional.  
421.2   The individual treatment plan must be based on diagnostic and 
421.3   functional assessments.  To the extent possible, the development 
421.4   and implementation of a treatment plan must be a collaborative 
421.5   process involving the recipient, and with the permission of the 
421.6   recipient, the recipient's family and others in the recipient's 
421.7   support system.  Providers of adult rehabilitative mental health 
421.8   services must develop the individual treatment plan within 30 
421.9   calendar days of intake.  The treatment plan must be updated at 
421.10  least every six months thereafter, or more often when there is 
421.11  significant change in the recipient's situation or functioning, 
421.12  or in services or service methods to be used, or at the request 
421.13  of the recipient or the recipient's legal guardian. 
421.14     (2) The individual treatment plan must include: 
421.15     (i) a list of problems identified in the assessment; 
421.16     (ii) the recipient's strengths and resources; 
421.17     (iii) concrete, measurable goals to be achieved, including 
421.18  time frames for achievement; 
421.19     (iv) specific objectives directed toward the achievement of 
421.20  each one of the goals; 
421.21     (v) documentation of participants in the treatment planning.
421.22  The recipient, if possible, must be a participant.  The 
421.23  recipient or the recipient's legal guardian must sign the 
421.24  treatment plan, or documentation must be provided why this was 
421.25  not possible.  A copy of the plan must be given to the recipient 
421.26  or legal guardian.  Referral to formal services must be 
421.27  arranged, including specific providers where applicable; 
421.28     (vi) cultural considerations, resources, and needs of the 
421.29  recipient must be included; 
421.30     (vii) planned frequency and type of services must be 
421.31  initiated; and 
421.32     (viii) clear progress notes on outcome of goals. 
421.33     (3) The individual community support plan defined in 
421.34  section 245.462, subdivision 12, may serve as the individual 
421.35  treatment plan if there is involvement of a mental health case 
421.36  manager, and with the approval of the recipient.  The individual 
422.1   community support plan must include the criteria in clause (2). 
422.2      Subd. 11.  [RECIPIENT FILE.] Providers of adult 
422.3   rehabilitative mental health services must maintain a file for 
422.4   each recipient that contains the following information: 
422.5      (1) diagnostic assessment or verification of its location, 
422.6   that is current and that was reviewed by a mental health 
422.7   professional who is employed by or under contract with the 
422.8   provider entity; 
422.9      (2) functional assessments; 
422.10     (3) individual treatment plans signed by the recipient and 
422.11  the mental health professional, or if the recipient refused to 
422.12  sign the plan, the date and reason stated by the recipient as to 
422.13  why the recipient would not sign the plan; 
422.14     (4) recipient history; 
422.15     (5) signed release forms; 
422.16     (6) recipient health information and current medications; 
422.17     (7) emergency contacts for the recipient; 
422.18     (8) case records which document the date of service, the 
422.19  place of service delivery, signature of the person providing the 
422.20  service, nature, extent and units of service, and place of 
422.21  service delivery; 
422.22     (9) contacts, direct or by telephone, with recipient's 
422.23  family or others, other providers, or other resources for 
422.24  service coordination; 
422.25     (10) summary of recipient case reviews by staff; and 
422.26     (11) written information by the recipient that the 
422.27  recipient requests be included in the file. 
422.28     Subd. 12.  [ADDITIONAL REQUIREMENTS.] (a) Providers of 
422.29  adult rehabilitative mental health services must comply with the 
422.30  requirements relating to referrals for case management in 
422.31  section 245.467, subdivision 4. 
422.32     (b) Adult rehabilitative mental health services are 
422.33  provided for most recipients in the recipient's home and 
422.34  community.  Services may also be provided at the home of a 
422.35  relative or significant other, job site, psychosocial clubhouse, 
422.36  drop-in center, social setting, classroom, or other places in 
423.1   the community.  Except for "transition to community services," 
423.2   the place of service does not include a regional treatment 
423.3   center, nursing home, residential treatment facility licensed 
423.4   under Minnesota Rules, parts 9520.0500 to 9520.0670 (Rule 36), 
423.5   or an acute care hospital. 
423.6      (c) Adult rehabilitative mental health services may be 
423.7   provided in group settings if appropriate to each participating 
423.8   recipient's needs and treatment plan.  A group is defined as two 
423.9   to ten clients, at least one of whom is a recipient, who is 
423.10  concurrently receiving a service which is identified in this 
423.11  section.  The service and group must be specified in the 
423.12  recipient's treatment plan.  No more than two qualified staff 
423.13  may bill Medicaid for services provided to the same group of 
423.14  recipients.  If two adult rehabilitative mental health workers 
423.15  bill for recipients in the same group session, they must each 
423.16  bill for different recipients. 
423.17     Subd. 13.  [EXCLUDED SERVICES.] The following services are 
423.18  excluded from reimbursement as adult rehabilitative mental 
423.19  health services: 
423.20     (1) recipient transportation services; 
423.21     (2) a service provided and billed by a provider who is not 
423.22  enrolled to provide adult rehabilitative mental health service; 
423.23     (3) adult rehabilitative mental health services performed 
423.24  by volunteers; 
423.25     (4) provider performance of household tasks, chores, or 
423.26  related activities, such as laundering clothes, moving the 
423.27  recipient's household, housekeeping, and grocery shopping for 
423.28  the recipient; 
423.29     (5) direct billing of time spent "on call" when not 
423.30  delivering services to recipients; 
423.31     (6) activities which are primarily social or recreational 
423.32  in nature, rather than rehabilitative, for the individual 
423.33  recipient, as determined by the individual's needs and treatment 
423.34  plan; 
423.35     (7) job-specific skills services, such as on-the-job 
423.36  training; 
424.1      (8) provider service time included in case management 
424.2   reimbursement; 
424.3      (9) outreach services to potential recipients; 
424.4      (10) a mental health service that is not medically 
424.5   necessary; and 
424.6      (11) any services provided by a hospital, board and 
424.7   lodging, or residential facility to an individual who is a 
424.8   patient in or resident of that facility. 
424.9      Subd. 14.  [BILLING WHEN SERVICES ARE PROVIDED BY QUALIFIED 
424.10  STATE STAFF.] When rehabilitative services are provided by 
424.11  qualified state staff who are assigned to pilot projects under 
424.12  section 245.4661, the county or other local entity to which the 
424.13  qualified state staff are assigned may consider these staff part 
424.14  of the local provider entity for which certification is sought 
424.15  under this section, and may bill the medical assistance program 
424.16  for qualifying services provided by the qualified state staff.  
424.17  Notwithstanding section 256.025, subdivision 2, payments for 
424.18  services provided by state staff who are assigned to adult 
424.19  mental health initiatives shall only be made from federal funds. 
424.20     Sec. 45.  [256B.0624] [ADULT MENTAL HEALTH CRISIS RESPONSE 
424.21  SERVICES.] 
424.22     Subdivision 1.  [SCOPE.] Medical assistance covers adult 
424.23  mental health crisis response services as defined in subdivision 
424.24  2, paragraphs (c) to (e), subject to federal approval, if 
424.25  provided to a recipient as defined in subdivision 3 and provided 
424.26  by a qualified provider entity as defined in this section and by 
424.27  a qualified individual provider working within the provider's 
424.28  scope of practice and as defined in this subdivision and 
424.29  identified in the recipient's individual crisis treatment plan 
424.30  as defined in subdivisions 10 and 13 and if determined to be 
424.31  medically necessary.  
424.32     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
424.33  following terms have the meanings given them. 
424.34     (a) "Mental health crisis" is a behavioral, emotional, or 
424.35  psychiatric situation which, but for the provision of crisis 
424.36  response services, would likely result in significantly reduced 
425.1   levels of functioning in primary activities of daily living, or 
425.2   in an emergency situation, or in the placement of the recipient 
425.3   in a more restrictive setting, including, but not limited to, 
425.4   inpatient hospitalization.  
425.5      (b) "Mental health emergency" is a behavioral, emotional, 
425.6   or psychiatric situation which causes an immediate need for 
425.7   mental health services and is consistent with section 62Q.55. 
425.8      A mental health crisis or emergency is determined for 
425.9   medical assistance service reimbursement by a physician, a 
425.10  mental health professional, or crisis mental health practitioner 
425.11  with input from the recipient whenever possible. 
425.12     (c) "Mental health crisis assessment" means an immediate 
425.13  face-to-face assessment by a physician, a mental health 
425.14  professional, or mental health practitioner under the clinical 
425.15  supervision of a mental health professional, following a 
425.16  screening that suggests that the adult may be experiencing a 
425.17  mental health crisis or mental health emergency situation. 
425.18     (d) "Mental health mobile crisis intervention services" 
425.19  means face-to-face, short-term intensive mental health services 
425.20  initiated during a mental health crisis or mental health 
425.21  emergency to help the recipient cope with immediate stressors, 
425.22  identify and utilize available resources and strengths, and 
425.23  begin to return to the recipient's baseline level of functioning.
425.24     (1) This service is provided on-site by a mobile crisis 
425.25  intervention team outside of an inpatient hospital setting.  
425.26  Mental health mobile crisis intervention services must be 
425.27  available 24 hours a day, seven days a week.  
425.28     (2) The initial screening must consider other available 
425.29  services to determine which service intervention would best 
425.30  address the recipient's needs and circumstances.  
425.31     (3) The mobile crisis intervention team must be available 
425.32  to meet promptly face-to-face with a person in mental health 
425.33  crisis or emergency in a community setting.  
425.34     (4) The intervention must consist of a mental health crisis 
425.35  assessment and a crisis treatment plan.  
425.36     (5) The treatment plan must include recommendations for any 
426.1   needed crisis stabilization services for the recipient. 
426.2      (e) "Mental health crisis stabilization services" means 
426.3   individualized mental health services provided to a recipient 
426.4   following crisis intervention services, which are designed to 
426.5   restore the recipient to the recipient's prior functional 
426.6   level.  Mental health crisis stabilization services may be 
426.7   provided in the recipient's home, the home of a family member or 
426.8   friend of the recipient, another community setting, or a 
426.9   short-term supervised, licensed residential program.  Mental 
426.10  health crisis stabilization does not include partial 
426.11  hospitalization or day treatment. 
426.12     Subd. 3.  [ELIGIBILITY.] An eligible recipient is an 
426.13  individual who: 
426.14     (1) is age 18 or older; 
426.15     (2) is screened as possibly experiencing a mental health 
426.16  crisis or emergency where a mental health crisis assessment is 
426.17  needed; and 
426.18     (3) is assessed as experiencing a mental health crisis or 
426.19  emergency, and mental health crisis intervention or crisis 
426.20  intervention and stabilization services are determined to be 
426.21  medically necessary.  
426.22     Subd. 4.  [PROVIDER ENTITY STANDARDS.] (a) A provider 
426.23  entity is an entity that meets the standards listed in paragraph 
426.24  (b) and: 
426.25     (1) is a county board operated entity; or 
426.26     (2) is a provider entity that is under contract with the 
426.27  county board in the county where the potential crisis or 
426.28  emergency is occurring.  To provide services under this section, 
426.29  the provider entity must directly provide the services; or if 
426.30  services are subcontracted, the provider entity must maintain 
426.31  responsibility for services and billing. 
426.32     (b) The adult mental health crisis response services 
426.33  provider entity must meet the following standards: 
426.34     (1) has the capacity to recruit, hire, and manage and train 
426.35  mental health professionals, practitioners, and rehabilitation 
426.36  workers; 
427.1      (2) has adequate administrative ability to ensure 
427.2   availability of services; 
427.3      (3) is able to ensure adequate preservice and in-service 
427.4   training; 
427.5      (4) is able to ensure that staff providing these services 
427.6   are skilled in the delivery of mental health crisis response 
427.7   services to recipients; 
427.8      (5) is able to ensure that staff are capable of 
427.9   implementing culturally specific treatment identified in the 
427.10  individual treatment plan that is meaningful and appropriate as 
427.11  determined by the recipient's culture, beliefs, values, and 
427.12  language; 
427.13     (6) is able to ensure enough flexibility to respond to the 
427.14  changing intervention and care needs of a recipient as 
427.15  identified by the recipient during the service partnership 
427.16  between the recipient and providers; 
427.17     (7) is able to ensure that mental health professionals and 
427.18  mental health practitioners have the communication tools and 
427.19  procedures to communicate and consult promptly about crisis 
427.20  assessment and interventions as services occur; 
427.21     (8) is able to coordinate these services with county 
427.22  emergency services and mental health crisis services; 
427.23     (9) is able to ensure that mental health crisis assessment 
427.24  and mobile crisis intervention services are available 24 hours a 
427.25  day, seven days a week; 
427.26     (10) is able to ensure that services are coordinated with 
427.27  other mental health service providers, county mental health 
427.28  authorities, or federally recognized American Indian authorities 
427.29  and others as necessary, with the consent of the adult.  
427.30  Services must also be coordinated with the recipient's case 
427.31  manager if the adult is receiving case management services; 
427.32     (11) is able to ensure that crisis intervention services 
427.33  are provided in a manner consistent with sections 245.461 to 
427.34  245.486; 
427.35     (12) is able to submit information as required by the 
427.36  state; 
428.1      (13) maintains staff training and personnel files; 
428.2      (14) is able to establish and maintain a quality assurance 
428.3   and evaluation plan to evaluate the outcomes of services and 
428.4   recipient satisfaction; 
428.5      (15) is able to keep records as required by applicable 
428.6   laws; 
428.7      (16) is able to comply with all applicable laws and 
428.8   statutes; 
428.9      (17) is an enrolled medical assistance provider; and 
428.10     (18) develops and maintains written policies and procedures 
428.11  regarding service provision and administration of the provider 
428.12  entity, including safety of staff and recipients in high-risk 
428.13  situations.  
428.14     Subd. 5.  [MOBILE CRISIS INTERVENTION STAFF 
428.15  QUALIFICATIONS.] For provision of adult mental health mobile 
428.16  crisis intervention services, a mobile crisis intervention team 
428.17  is comprised of at least two mental health professionals as 
428.18  defined in section 245.462, subdivision 18, clauses (1) to (5), 
428.19  or a combination of at least one mental health professional and 
428.20  one mental health practitioner as defined in section 245.462, 
428.21  subdivision 17, with the required mental health crisis training 
428.22  and under the clinical supervision of a mental health 
428.23  professional on the team.  The team must have at least two 
428.24  people with at least one member providing on-site crisis 
428.25  intervention services when needed.  Team members must be 
428.26  experienced in mental health assessment, crisis intervention 
428.27  techniques, and clinical decision-making under emergency 
428.28  conditions and have knowledge of local services and resources.  
428.29  The team must recommend and coordinate the team's services with 
428.30  appropriate local resources such as the county social services 
428.31  agency, mental health services, and local law enforcement when 
428.32  necessary. 
428.33     Subd. 6.  [INITIAL SCREENING, CRISIS ASSESSMENT, AND MOBILE 
428.34  INTERVENTION TREATMENT PLANNING.] (a) Prior to initiating mobile 
428.35  crisis intervention services, a screening of the potential 
428.36  crisis situation must be conducted.  The screening may use the 
429.1   resources of crisis assistance and emergency services as defined 
429.2   in sections 245.462, subdivision 6, and 245.469, subdivisions 1 
429.3   and 2.  The screening must gather information, determine whether 
429.4   a crisis situation exists, identify parties involved, and 
429.5   determine an appropriate response. 
429.6      (b) If a crisis exists, a crisis assessment must be 
429.7   completed.  A crisis assessment evaluates any immediate needs 
429.8   for which emergency services are needed and, as time permits, 
429.9   the recipient's current life situation, sources of stress, 
429.10  mental health problems and symptoms, strengths, cultural 
429.11  considerations, support network, vulnerabilities, and current 
429.12  functioning. 
429.13     (c) If the crisis assessment determines mobile crisis 
429.14  intervention services are needed, the intervention services must 
429.15  be provided promptly.  As opportunity presents during the 
429.16  intervention, at least two members of the mobile crisis 
429.17  intervention team must confer directly or by telephone about the 
429.18  assessment, treatment plan, and actions taken and needed.  At 
429.19  least one of the team members must be on site providing crisis 
429.20  intervention services.  If providing on-site crisis intervention 
429.21  services, a mental health practitioner must seek clinical 
429.22  supervision as required in subdivision 9. 
429.23     (d) The mobile crisis intervention team must develop an 
429.24  initial, brief crisis treatment plan as soon as appropriate but 
429.25  no later than 24 hours after the initial face-to-face 
429.26  intervention.  The plan must address the needs and problems 
429.27  noted in the crisis assessment and include measurable short-term 
429.28  goals, cultural considerations, and frequency and type of 
429.29  services to be provided to achieve the goals and reduce or 
429.30  eliminate the crisis.  The treatment plan must be updated as 
429.31  needed to reflect current goals and services. 
429.32     (e) The team must document which short-term goals have been 
429.33  met, and when no further crisis intervention services are 
429.34  required. 
429.35     (f) If the recipient's crisis is stabilized, but the 
429.36  recipient needs a referral to other services, the team must 
430.1   provide referrals to these services.  If the recipient has a 
430.2   case manager, planning for other services must be coordinated 
430.3   with the case manager. 
430.4      Subd. 7.  [CRISIS STABILIZATION SERVICES.] (a) Crisis 
430.5   stabilization services must be provided by qualified staff of a 
430.6   crisis stabilization services provider entity and must meet the 
430.7   following standards: 
430.8      (1) a crisis stabilization treatment plan must be developed 
430.9   which meets the criteria in subdivision 11; 
430.10     (2) staff must be qualified as defined in subdivision 8; 
430.11  and 
430.12     (3) services must be delivered according to the treatment 
430.13  plan and include face-to-face contact with the recipient by 
430.14  qualified staff for further assessment, help with referrals, 
430.15  updating of the crisis stabilization treatment plan, supportive 
430.16  counseling, skills training, and collaboration with other 
430.17  service providers in the community. 
430.18     (b) If crisis stabilization services are provided in a 
430.19  supervised, licensed residential setting, the recipient must be 
430.20  contacted face-to-face daily by a qualified mental health 
430.21  practitioner or mental health professional.  The program must 
430.22  have 24-hour-a-day residential staffing which may include staff 
430.23  who do not meet the qualifications in subdivision 8.  The 
430.24  residential staff must have 24-hour-a-day immediate direct or 
430.25  telephone access to a qualified mental health professional or 
430.26  practitioner. 
430.27     (c) If crisis stabilization services are provided in a 
430.28  supervised, licensed residential setting that serves no more 
430.29  than four adult residents, and no more than two are recipients 
430.30  of crisis stabilization services, the residential staff must 
430.31  include, for at least eight hours per day, at least one 
430.32  individual who meets the qualifications in subdivision 8. 
430.33     (d) If crisis stabilization services are provided in a 
430.34  supervised, licensed residential setting that serves more than 
430.35  four adult residents, and one or more are recipients of crisis 
430.36  stabilization services, the residential staff must include, for 
431.1   24 hours per day, at least one individual who meets the 
431.2   qualifications in subdivision 8.  During the first 48 hours that 
431.3   a recipient is in the residential program, the residential 
431.4   program must have at least two staff working 24 hours a day.  
431.5   Staffing levels may be adjusted thereafter according to the 
431.6   needs of the recipient as specified in the crisis stabilization 
431.7   treatment plan. 
431.8      Subd. 8.  [ADULT CRISIS STABILIZATION STAFF 
431.9   QUALIFICATIONS.] (a) Adult mental health crisis stabilization 
431.10  services must be provided by qualified individual staff of a 
431.11  qualified provider entity.  Individual provider staff must have 
431.12  the following qualifications: 
431.13     (1) be a mental health professional as defined in section 
431.14  245.462, subdivision 18, clauses (1) to (5); 
431.15     (2) be a mental health practitioner as defined in section 
431.16  245.462, subdivision 17.  The mental health practitioner must 
431.17  work under the clinical supervision of a mental health 
431.18  professional; or 
431.19     (3) be a mental health rehabilitation worker who meets the 
431.20  criteria in section 256B.0623, subdivision 5, clause (3); works 
431.21  under the direction of a mental health practitioner as defined 
431.22  in section 245.462, subdivision 17, or under direction of a 
431.23  mental health professional; and works under the clinical 
431.24  supervision of a mental health professional. 
431.25     (b) Mental health practitioners and mental health 
431.26  rehabilitation workers must have completed at least 30 hours of 
431.27  training in crisis intervention and stabilization during the 
431.28  past two years. 
431.29     Subd. 9.  [SUPERVISION.] Mental health practitioners may 
431.30  provide crisis assessment and mobile crisis intervention 
431.31  services if the following clinical supervision requirements are 
431.32  met: 
431.33     (1) the mental health provider entity must accept full 
431.34  responsibility for the services provided; 
431.35     (2) the mental health professional of the provider entity, 
431.36  who is an employee or under contract with the provider entity, 
432.1   must be immediately available by phone or in person for clinical 
432.2   supervision; 
432.3      (3) the mental health professional is consulted, in person 
432.4   or by phone, during the first three hours when a mental health 
432.5   practitioner provides on-site service; 
432.6      (4) the mental health professional must: 
432.7      (i) review and approve of the tentative crisis assessment 
432.8   and crisis treatment plan; 
432.9      (ii) document the consultation; and 
432.10     (iii) sign the crisis assessment and treatment plan within 
432.11  the next business day; 
432.12     (5) if the mobile crisis intervention services continue 
432.13  into a second calendar day, a mental health professional must 
432.14  contact the recipient face-to-face on the second day to provide 
432.15  services and update the crisis treatment plan; and 
432.16     (6) the on-site observation must be documented in the 
432.17  recipient's record and signed by the mental health professional. 
432.18     Subd. 10.  [RECIPIENT FILE.] Providers of mobile crisis 
432.19  intervention or crisis stabilization services must maintain a 
432.20  file for each recipient containing the following information: 
432.21     (1) individual crisis treatment plans signed by the 
432.22  recipient, mental health professional, and mental health 
432.23  practitioner who developed the crisis treatment plan, or if the 
432.24  recipient refused to sign the plan, the date and reason stated 
432.25  by the recipient as to why the recipient would not sign the 
432.26  plan; 
432.27     (2) signed release forms; 
432.28     (3) recipient health information and current medications; 
432.29     (4) emergency contacts for the recipient; 
432.30     (5) case records which document the date of service, place 
432.31  of service delivery, signature of the person providing the 
432.32  service, and the nature, extent, and units of service.  Direct 
432.33  or telephone contact with the recipient's family or others 
432.34  should be documented; 
432.35     (6) required clinical supervision by mental health 
432.36  professionals; 
433.1      (7) summary of the recipient's case reviews by staff; and 
433.2      (8) any written information by the recipient that the 
433.3   recipient wants in the file. 
433.4   Documentation in the file must comply with all requirements of 
433.5   the commissioner. 
433.6      Subd. 11.  [TREATMENT PLAN.] The individual crisis 
433.7   stabilization treatment plan must include, at a minimum: 
433.8      (1) a list of problems identified in the assessment; 
433.9      (2) a list of the recipient's strengths and resources; 
433.10     (3) concrete, measurable short-term goals and tasks to be 
433.11  achieved, including time frames for achievement; 
433.12     (4) specific objectives directed toward the achievement of 
433.13  each one of the goals; 
433.14     (5) documentation of the participants involved in the 
433.15  service planning.  The recipient, if possible, must be a 
433.16  participant.  The recipient or the recipient's legal guardian 
433.17  must sign the service plan or documentation must be provided why 
433.18  this was not possible.  A copy of the plan must be given to the 
433.19  recipient and the recipient's legal guardian.  The plan should 
433.20  include services arranged, including specific providers where 
433.21  applicable; 
433.22     (6) planned frequency and type of services initiated; 
433.23     (7) a crisis response action plan if a crisis should occur; 
433.24     (8) clear progress notes on outcome of goals; 
433.25     (9) a written plan must be completed within 24 hours of 
433.26  beginning services with the recipient; and 
433.27     (10) a treatment plan must be developed by a mental health 
433.28  professional or mental health practitioner under the clinical 
433.29  supervision of a mental health professional.  The mental health 
433.30  professional must approve and sign all treatment plans. 
433.31     Subd. 12.  [EXCLUDED SERVICES.] The following services are 
433.32  excluded from reimbursement under this section: 
433.33     (1) room and board services; 
433.34     (2) services delivered to a recipient while admitted to an 
433.35  inpatient hospital; 
433.36     (3) recipient transportation costs may be covered under 
434.1   other medical assistance provisions, but transportation services 
434.2   are not an adult mental health crisis response service; 
434.3      (4) services provided and billed by a provider who is not 
434.4   enrolled under medical assistance to provide adult mental health 
434.5   crisis response services; 
434.6      (5) services performed by volunteers; 
434.7      (6) direct billing of time spent "on call" when not 
434.8   delivering services to a recipient; 
434.9      (7) provider service time included in case management 
434.10  reimbursement.  When a provider is eligible to provide more than 
434.11  one type of medical assistance service, the recipient must have 
434.12  a choice of provider for each service, unless otherwise provided 
434.13  for by law; 
434.14     (8) outreach services to potential recipients; and 
434.15     (9) a mental health service that is not medically necessary.
434.16     Sec. 46.  Minnesota Statutes 2000, section 256B.0625, 
434.17  subdivision 20, is amended to read: 
434.18     Subd. 20.  [MENTAL HEALTH CASE MANAGEMENT.] (a) To the 
434.19  extent authorized by rule of the state agency, medical 
434.20  assistance covers case management services to persons with 
434.21  serious and persistent mental illness and children with severe 
434.22  emotional disturbance.  Services provided under this section 
434.23  must meet the relevant standards in sections 245.461 to 
434.24  245.4888, the Comprehensive Adult and Children's Mental Health 
434.25  Acts, Minnesota Rules, parts 9520.0900 to 9520.0926, and 
434.26  9505.0322, excluding subpart 10. 
434.27     (b) Entities meeting program standards set out in rules 
434.28  governing family community support services as defined in 
434.29  section 245.4871, subdivision 17, are eligible for medical 
434.30  assistance reimbursement for case management services for 
434.31  children with severe emotional disturbance when these services 
434.32  meet the program standards in Minnesota Rules, parts 9520.0900 
434.33  to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
434.34     (c) Medical assistance and MinnesotaCare payment for mental 
434.35  health case management shall be made on a monthly basis.  In 
434.36  order to receive payment for an eligible child, the provider 
435.1   must document at least a face-to-face contact with the child, 
435.2   the child's parents, or the child's legal representative.  To 
435.3   receive payment for an eligible adult, the provider must 
435.4   document: 
435.5      (1) at least a face-to-face contact with the adult or the 
435.6   adult's legal representative; or 
435.7      (2) at least a telephone contact with the adult or the 
435.8   adult's legal representative and document a face-to-face contact 
435.9   with the adult or the adult's legal representative within the 
435.10  preceding two months. 
435.11     (d) Payment for mental health case management provided by 
435.12  county or state staff shall be based on the monthly rate 
435.13  methodology under section 256B.094, subdivision 6, paragraph 
435.14  (b), with separate rates calculated for child welfare and mental 
435.15  health, and within mental health, separate rates for children 
435.16  and adults. 
435.17     (e) Payment for mental health case management provided by 
435.18  Indian health services or by agencies operated by Indian tribes 
435.19  may be made according to this section or other relevant 
435.20  federally approved rate setting methodology. 
435.21     (f) Payment for mental health case management provided by 
435.22  county-contracted vendors who contract with a county or Indian 
435.23  tribe shall be based on a monthly rate negotiated by the host 
435.24  county or tribe.  The negotiated rate must not exceed the rate 
435.25  charged by the vendor for the same service to other payers.  If 
435.26  the service is provided by a team of contracted vendors, the 
435.27  county or tribe may negotiate a team rate with a vendor who is a 
435.28  member of the team.  The team shall determine how to distribute 
435.29  the rate among its members.  No reimbursement received by 
435.30  contracted vendors shall be returned to the county or tribe, 
435.31  except to reimburse the county or tribe for advance funding 
435.32  provided by the county or tribe to the vendor. 
435.33     (f) (g) If the service is provided by a team which includes 
435.34  contracted vendors, tribal staff, and county or state staff, the 
435.35  costs for county or state staff participation in the team shall 
435.36  be included in the rate for county-provided services.  In this 
436.1   case, the contracted vendor, the tribal agency, and the county 
436.2   may each receive separate payment for services provided by each 
436.3   entity in the same month.  In order to prevent duplication of 
436.4   services, the county each entity must document, in the 
436.5   recipient's file, the need for team case management and a 
436.6   description of the roles of the team members. 
436.7      (g) (h) The commissioner shall calculate the nonfederal 
436.8   share of actual medical assistance and general assistance 
436.9   medical care payments for each county, based on the higher of 
436.10  calendar year 1995 or 1996, by service date, project that amount 
436.11  forward to 1999, and transfer one-half of the result from 
436.12  medical assistance and general assistance medical care to each 
436.13  county's mental health grants under sections 245.4886 and 
436.14  256E.12 for calendar year 1999.  The annualized minimum amount 
436.15  added to each county's mental health grant shall be $3,000 per 
436.16  year for children and $5,000 per year for adults.  The 
436.17  commissioner may reduce the statewide growth factor in order to 
436.18  fund these minimums.  The annualized total amount transferred 
436.19  shall become part of the base for future mental health grants 
436.20  for each county. 
436.21     (h) (i) Any net increase in revenue to the county or tribe 
436.22  as a result of the change in this section must be used to 
436.23  provide expanded mental health services as defined in sections 
436.24  245.461 to 245.4888, the Comprehensive Adult and Children's 
436.25  Mental Health Acts, excluding inpatient and residential 
436.26  treatment.  For adults, increased revenue may also be used for 
436.27  services and consumer supports which are part of adult mental 
436.28  health projects approved under Laws 1997, chapter 203, article 
436.29  7, section 25.  For children, increased revenue may also be used 
436.30  for respite care and nonresidential individualized 
436.31  rehabilitation services as defined in section 245.492, 
436.32  subdivisions 17 and 23.  "Increased revenue" has the meaning 
436.33  given in Minnesota Rules, part 9520.0903, subpart 3.  
436.34     (i) (j) Notwithstanding section 256B.19, subdivision 1, the 
436.35  nonfederal share of costs for mental health case management 
436.36  shall be provided by the recipient's county of responsibility, 
437.1   as defined in sections 256G.01 to 256G.12, from sources other 
437.2   than federal funds or funds used to match other federal 
437.3   funds.  If the service is provided by a tribal agency, the 
437.4   nonfederal share, if any, shall be provided by the recipient's 
437.5   tribe.  
437.6      (j) (k) The commissioner may suspend, reduce, or terminate 
437.7   the reimbursement to a provider that does not meet the reporting 
437.8   or other requirements of this section.  The county of 
437.9   responsibility, as defined in sections 256G.01 to 256G.12, or, 
437.10  if applicable, the tribal agency, is responsible for any federal 
437.11  disallowances.  The county or tribe may share this 
437.12  responsibility with its contracted vendors.  
437.13     (k) (l) The commissioner shall set aside a portion of the 
437.14  federal funds earned under this section to repay the special 
437.15  revenue maximization account under section 256.01, subdivision 
437.16  2, clause (15).  The repayment is limited to: 
437.17     (1) the costs of developing and implementing this section; 
437.18  and 
437.19     (2) programming the information systems. 
437.20     (l) (m) Notwithstanding section 256.025, subdivision 2, 
437.21  payments to counties and tribal agencies for case management 
437.22  expenditures under this section shall only be made from federal 
437.23  earnings from services provided under this section.  Payments to 
437.24  contracted county-contracted vendors shall include both the 
437.25  federal earnings and the county share. 
437.26     (m) (n) Notwithstanding section 256B.041, county payments 
437.27  for the cost of mental health case management services provided 
437.28  by county or state staff shall not be made to the state 
437.29  treasurer.  For the purposes of mental health case management 
437.30  services provided by county or state staff under this section, 
437.31  the centralized disbursement of payments to counties under 
437.32  section 256B.041 consists only of federal earnings from services 
437.33  provided under this section. 
437.34     (n) (o) Case management services under this subdivision do 
437.35  not include therapy, treatment, legal, or outreach services. 
437.36     (o) (p) If the recipient is a resident of a nursing 
438.1   facility, intermediate care facility, or hospital, and the 
438.2   recipient's institutional care is paid by medical assistance, 
438.3   payment for case management services under this subdivision is 
438.4   limited to the last 30 days of the recipient's residency in that 
438.5   facility and may not exceed more than two months in a calendar 
438.6   year. 
438.7      (p) (q) Payment for case management services under this 
438.8   subdivision shall not duplicate payments made under other 
438.9   program authorities for the same purpose. 
438.10     (q) (r) By July 1, 2000, the commissioner shall evaluate 
438.11  the effectiveness of the changes required by this section, 
438.12  including changes in number of persons receiving mental health 
438.13  case management, changes in hours of service per person, and 
438.14  changes in caseload size. 
438.15     (r) (s) For each calendar year beginning with the calendar 
438.16  year 2001, the annualized amount of state funds for each county 
438.17  determined under paragraph (g) (h) shall be adjusted by the 
438.18  county's percentage change in the average number of clients per 
438.19  month who received case management under this section during the 
438.20  fiscal year that ended six months prior to the calendar year in 
438.21  question, in comparison to the prior fiscal year. 
438.22     (s) (t) For counties receiving the minimum allocation of 
438.23  $3,000 or $5,000 described in paragraph (g) (h), the adjustment 
438.24  in paragraph (r) (s) shall be determined so that the county 
438.25  receives the higher of the following amounts: 
438.26     (1) a continuation of the minimum allocation in paragraph 
438.27  (g) (h); or 
438.28     (2) an amount based on that county's average number of 
438.29  clients per month who received case management under this 
438.30  section during the fiscal year that ended six months prior to 
438.31  the calendar year in question, in comparison to the prior fiscal 
438.32  year, times the average statewide grant per person per month for 
438.33  counties not receiving the minimum allocation. 
438.34     (t) (u) The adjustments in paragraphs (r) and (s) and (t) 
438.35  shall be calculated separately for children and adults. 
438.36     Sec. 47.  Minnesota Statutes 2000, section 256B.0625, is 
439.1   amended by adding a subdivision to read: 
439.2      Subd. 45.  [APPEAL PROCESS.] If a county contract or 
439.3   certification is required to enroll as an authorized provider of 
439.4   mental health services under medical assistance, and if a county 
439.5   refuses to grant the necessary contract or certification, the 
439.6   provider may appeal the county decision to the commissioner.  A 
439.7   recipient may initiate an appeal on behalf of a provider who has 
439.8   been denied certification. The commissioner shall determine 
439.9   whether the provider meets applicable standards under state laws 
439.10  and rules based on an independent review of the facts, including 
439.11  comments from the county review.  If the commissioner finds that 
439.12  the provider meets the applicable standards, the commissioner 
439.13  shall enroll the provider as an authorized provider.  The 
439.14  commissioner shall develop procedures for providers and 
439.15  recipients to appeal a county decision to refuse to enroll a 
439.16  provider.  After the commissioner makes a decision regarding an 
439.17  appeal, the county, provider, or recipient may request that the 
439.18  commissioner reconsider the commissioner's initial decision.  
439.19  The commissioner's reconsideration decision is final and not 
439.20  subject to further appeal. 
439.21     Sec. 48.  Minnesota Statutes 2000, section 256B.0625, is 
439.22  amended by adding a subdivision to read: 
439.23     Subd. 46.  [MENTAL HEALTH PROVIDER TRAVEL TIME.] Medical 
439.24  assistance covers provider travel time if a recipient's 
439.25  individual treatment plan requires the provision of mental 
439.26  health services outside of the provider's normal place of 
439.27  business.  This does not include any travel time which is 
439.28  included in other billable services, and is only covered when 
439.29  the mental health service being provided to a recipient is 
439.30  covered under medical assistance. 
439.31     Sec. 49.  [256B.761] [REIMBURSEMENT FOR MENTAL HEALTH 
439.32  SERVICES.] 
439.33     Effective for services rendered on or after July 1, 2001, 
439.34  payment for medication management provided to psychiatric 
439.35  patients, outpatient mental health services, day treatment 
439.36  services, home-based mental health services, and family 
440.1   community support services shall be paid at the lower of (1) 
440.2   submitted charges, or (2) 75.6 percent of the 50th percentile of 
440.3   1999 charges. 
440.4      Sec. 50.  [256B.82] [PREPAID PLANS AND MENTAL HEALTH 
440.5   REHABILITATIVE SERVICES.] 
440.6      Medical assistance and MinnesotaCare prepaid health plans 
440.7   may include coverage for adult mental health rehabilitative 
440.8   services under section 256B.0623 and adult mental health crisis 
440.9   response services under section 256B.0624, beginning January 1, 
440.10  2004. 
440.11     By January 15, 2003, the commissioner shall report to the 
440.12  legislature how these services should be included in prepaid 
440.13  plans.  The commissioner shall consult with mental health 
440.14  advocates, health plans, and counties in developing this 
440.15  report.  The report recommendations must include a plan to 
440.16  ensure coordination of these services between health plans and 
440.17  counties, assure recipient access to essential community 
440.18  providers, and monitor the health plans' delivery of services 
440.19  through utilization review and quality standards. 
440.20     Sec. 51.  [256B.83] [MAINTENANCE OF EFFORT FOR CERTAIN 
440.21  MENTAL HEALTH SERVICES.] 
440.22     Any net increase in revenue to the county as a result of 
440.23  the change in section 256B.0623 or 256B.0624 must be used to 
440.24  provide expanded mental health services as defined in sections 
440.25  245.461 to 245.486, the Comprehensive Adult Mental Health Act, 
440.26  excluding inpatient and residential treatment.  Increased 
440.27  revenue may also be used for services and consumer supports, 
440.28  which are part of adult mental health projects approved under 
440.29  section 245.4661.  "Increased revenue" has the meaning given in 
440.30  Minnesota Rules, part 9520.0903, subpart 3. 
440.31     Sec. 52.  Minnesota Statutes 2000, section 260C.201, 
440.32  subdivision 1, is amended to read: 
440.33     Subdivision 1.  [DISPOSITIONS.] (a) If the court finds that 
440.34  the child is in need of protection or services or neglected and 
440.35  in foster care, it shall enter an order making any of the 
440.36  following dispositions of the case: 
441.1      (1) place the child under the protective supervision of the 
441.2   local social services agency or child-placing agency in the home 
441.3   of a parent of the child under conditions prescribed by the 
441.4   court directed to the correction of the child's need for 
441.5   protection or services, or: 
441.6      (i) the court may order the child into the home of a parent 
441.7   who does not otherwise have legal custody of the child, however, 
441.8   an order under this section does not confer legal custody on 
441.9   that parent; 
441.10     (ii) if the court orders the child into the home of a 
441.11  father who is not adjudicated, he must cooperate with paternity 
441.12  establishment proceedings regarding the child in the appropriate 
441.13  jurisdiction as one of the conditions prescribed by the court 
441.14  for the child to continue in his home; 
441.15     (iii) the court may order the child into the home of a 
441.16  noncustodial parent with conditions and may also order both the 
441.17  noncustodial and the custodial parent to comply with the 
441.18  requirements of a case plan under subdivision 2; 
441.19     (2) transfer legal custody to one of the following: 
441.20     (i) a child-placing agency; or 
441.21     (ii) the local social services agency. 
441.22     In placing a child whose custody has been transferred under 
441.23  this paragraph, the agencies shall follow the requirements of 
441.24  section 260C.193, subdivision 3; 
441.25     (3) if the child has been adjudicated as a child in need of 
441.26  protection or services because the child is in need of special 
441.27  treatment and services or care for reasons of physical or mental 
441.28  health to treat or ameliorate a physical or mental disability, 
441.29  the court may order the child's parent, guardian, or custodian 
441.30  to provide it.  The court may order the child's health plan 
441.31  company to provide mental health services to the child.  Section 
441.32  62Q.535 applies to an order for mental health services directed 
441.33  to the child's health plan company. If the health plan, parent, 
441.34  guardian, or custodian fails or is unable to provide this 
441.35  treatment or care, the court may order it provided.  Absent 
441.36  specific written findings by the court that the child's 
442.1   disability is the result of abuse or neglect by the child's 
442.2   parent or guardian, the court shall not transfer legal custody 
442.3   of the child for the purpose of obtaining special treatment or 
442.4   care solely because the parent is unable to provide the 
442.5   treatment or care.  If the court's order for mental health 
442.6   treatment is based on a diagnosis made by a treatment 
442.7   professional, the court may order that the diagnosing 
442.8   professional not provide the treatment to the child if it finds 
442.9   that such an order is in the child's best interests; or 
442.10     (4) if the court believes that the child has sufficient 
442.11  maturity and judgment and that it is in the best interests of 
442.12  the child, the court may order a child 16 years old or older to 
442.13  be allowed to live independently, either alone or with others as 
442.14  approved by the court under supervision the court considers 
442.15  appropriate, if the county board, after consultation with the 
442.16  court, has specifically authorized this dispositional 
442.17  alternative for a child. 
442.18     (b) If the child was adjudicated in need of protection or 
442.19  services because the child is a runaway or habitual truant, the 
442.20  court may order any of the following dispositions in addition to 
442.21  or as alternatives to the dispositions authorized under 
442.22  paragraph (a): 
442.23     (1) counsel the child or the child's parents, guardian, or 
442.24  custodian; 
442.25     (2) place the child under the supervision of a probation 
442.26  officer or other suitable person in the child's own home under 
442.27  conditions prescribed by the court, including reasonable rules 
442.28  for the child's conduct and the conduct of the parents, 
442.29  guardian, or custodian, designed for the physical, mental, and 
442.30  moral well-being and behavior of the child; or with the consent 
442.31  of the commissioner of corrections, place the child in a group 
442.32  foster care facility which is under the commissioner's 
442.33  management and supervision; 
442.34     (3) subject to the court's supervision, transfer legal 
442.35  custody of the child to one of the following: 
442.36     (i) a reputable person of good moral character.  No person 
443.1   may receive custody of two or more unrelated children unless 
443.2   licensed to operate a residential program under sections 245A.01 
443.3   to 245A.16; or 
443.4      (ii) a county probation officer for placement in a group 
443.5   foster home established under the direction of the juvenile 
443.6   court and licensed pursuant to section 241.021; 
443.7      (4) require the child to pay a fine of up to $100.  The 
443.8   court shall order payment of the fine in a manner that will not 
443.9   impose undue financial hardship upon the child; 
443.10     (5) require the child to participate in a community service 
443.11  project; 
443.12     (6) order the child to undergo a chemical dependency 
443.13  evaluation and, if warranted by the evaluation, order 
443.14  participation by the child in a drug awareness program or an 
443.15  inpatient or outpatient chemical dependency treatment program; 
443.16     (7) if the court believes that it is in the best interests 
443.17  of the child and of public safety that the child's driver's 
443.18  license or instruction permit be canceled, the court may order 
443.19  the commissioner of public safety to cancel the child's license 
443.20  or permit for any period up to the child's 18th birthday.  If 
443.21  the child does not have a driver's license or permit, the court 
443.22  may order a denial of driving privileges for any period up to 
443.23  the child's 18th birthday.  The court shall forward an order 
443.24  issued under this clause to the commissioner, who shall cancel 
443.25  the license or permit or deny driving privileges without a 
443.26  hearing for the period specified by the court.  At any time 
443.27  before the expiration of the period of cancellation or denial, 
443.28  the court may, for good cause, order the commissioner of public 
443.29  safety to allow the child to apply for a license or permit, and 
443.30  the commissioner shall so authorize; 
443.31     (8) order that the child's parent or legal guardian deliver 
443.32  the child to school at the beginning of each school day for a 
443.33  period of time specified by the court; or 
443.34     (9) require the child to perform any other activities or 
443.35  participate in any other treatment programs deemed appropriate 
443.36  by the court.  
444.1      To the extent practicable, the court shall enter a 
444.2   disposition order the same day it makes a finding that a child 
444.3   is in need of protection or services or neglected and in foster 
444.4   care, but in no event more than 15 days after the finding unless 
444.5   the court finds that the best interests of the child will be 
444.6   served by granting a delay.  If the child was under eight years 
444.7   of age at the time the petition was filed, the disposition order 
444.8   must be entered within ten days of the finding and the court may 
444.9   not grant a delay unless good cause is shown and the court finds 
444.10  the best interests of the child will be served by the delay. 
444.11     (c) If a child who is 14 years of age or older is 
444.12  adjudicated in need of protection or services because the child 
444.13  is a habitual truant and truancy procedures involving the child 
444.14  were previously dealt with by a school attendance review board 
444.15  or county attorney mediation program under section 260A.06 or 
444.16  260A.07, the court shall order a cancellation or denial of 
444.17  driving privileges under paragraph (b), clause (7), for any 
444.18  period up to the child's 18th birthday. 
444.19     (d) In the case of a child adjudicated in need of 
444.20  protection or services because the child has committed domestic 
444.21  abuse and been ordered excluded from the child's parent's home, 
444.22  the court shall dismiss jurisdiction if the court, at any time, 
444.23  finds the parent is able or willing to provide an alternative 
444.24  safe living arrangement for the child, as defined in Laws 1997, 
444.25  chapter 239, article 10, section 2.  
444.26     Sec. 53.  [DEVELOPMENT OF PAYMENT SYSTEM FOR ADULT 
444.27  RESIDENTIAL SERVICES GRANTS.] 
444.28     The commissioner of human services shall review funding 
444.29  methods for adult residential services grants under Minnesota 
444.30  Rules, parts 9535.2000 to 9535.3000, and shall develop a payment 
444.31  system that takes into account client difficulty of care as 
444.32  manifested by client physical, mental, or behavioral 
444.33  conditions.  The payment system must provide reimbursement for 
444.34  education, consultation, and support services provided to 
444.35  families and other individuals as an extension of the treatment 
444.36  process.  The commissioner shall present recommendations and 
445.1   draft legislation for an adult residential services payment 
445.2   system to the legislature by January 15, 2002.  The 
445.3   recommendations must address whether additional funding for 
445.4   adult residential services grants is necessary for the provision 
445.5   of high quality services under a payment reimbursement system. 
445.6      Sec. 54.  [NOTICE REGARDING ESTABLISHMENT OF CONTINUING 
445.7   CARE BENEFIT PROGRAM.] 
445.8      When the continuing care benefit program for persons with 
445.9   mental illness under Minnesota Statutes, section 256.9693, is 
445.10  established, the commissioner of human services shall notify 
445.11  counties, health plan companies with prepaid medical assistance 
445.12  contracts, health care providers, and enrollees of the benefit 
445.13  program through bulletins, workshops, and other meetings. 
445.14     Sec. 55.  [STUDY OF CHILDREN'S MENTAL HEALTH SYSTEM.] 
445.15     The commissioner of human services shall conduct a 
445.16  comprehensive study of the children's mental health system, 
445.17  including, but not limited to, governance, funding for services, 
445.18  family involvement in the provision of services, the involvement 
445.19  of schools and other entities in the provision of services, and 
445.20  the use of a public health model for early intervention and 
445.21  treatment services.  This study shall be conducted in 
445.22  consultation with the commissioner of health; the commissioner 
445.23  of children, families, and learning; the providers of mental 
445.24  health services in schools; other providers of mental health 
445.25  services; parents of children receiving mental health services; 
445.26  local children's mental health collaboratives; counties; and 
445.27  other interested parties.  The study shall include an assessment 
445.28  and evaluation of the family services collaboratives and mental 
445.29  health collaboratives.  The commissioner shall report findings 
445.30  and recommendations for changes to the children's mental health 
445.31  system to the legislature by January 15, 2002. 
445.32     Sec. 56.  [STUDY; LENGTH OF STAY FOR MEDICARE-ELIGIBLE 
445.33  PERSONS.] 
445.34     The commissioner of human services shall study and make 
445.35  recommendations on how Medicare-eligible persons with mental 
445.36  illness may obtain acute care hospital inpatient treatment for 
446.1   mental illness for a length of stay beyond that allowed by the 
446.2   diagnostic classifications for mental illness according to 
446.3   Minnesota Statutes, section 256.969, subdivision 3a.  The study 
446.4   and recommendations shall be reported to the legislature by 
446.5   January 15, 2002. 
446.6      Sec. 57.  [TRANSITIONAL SERVICES FOR MENTALLY ILL OFFENDERS 
446.7   PILOT PROGRAM REPORT.] 
446.8      By January 15, 2003, the commissioner of corrections shall 
446.9   report to the chairs and ranking minority members of the house 
446.10  and senate committees and divisions having jurisdiction over 
446.11  criminal justice policy and funding on the effectiveness of the 
446.12  grants made and pilot projects funded under section 244.25. 
446.13                             ARTICLE 10 
446.14                        ASSISTANCE PROGRAMS 
446.15     Section 1.  Minnesota Statutes 2000, section 256.98, 
446.16  subdivision 8, is amended to read: 
446.17     Subd. 8.  [DISQUALIFICATION FROM PROGRAM.] (a) Any person 
446.18  found to be guilty of wrongfully obtaining assistance by a 
446.19  federal or state court or by an administrative hearing 
446.20  determination, or waiver thereof, through a disqualification 
446.21  consent agreement, or as part of any approved diversion plan 
446.22  under section 401.065, or any court-ordered stay which carries 
446.23  with it any probationary or other conditions, in the Minnesota 
446.24  family assistance investment program, the food stamp program, 
446.25  the general assistance program, the group residential housing 
446.26  program, or the Minnesota supplemental aid program shall be 
446.27  disqualified from that program.  In addition, any person 
446.28  disqualified from the Minnesota family investment program shall 
446.29  also be disqualified from the food stamp program.  The needs of 
446.30  that individual shall not be taken into consideration in 
446.31  determining the grant level for that assistance unit:  
446.32     (1) for one year after the first offense; 
446.33     (2) for two years after the second offense; and 
446.34     (3) permanently after the third or subsequent offense.  
446.35     The period of program disqualification shall begin on the 
446.36  date stipulated on the advance notice of disqualification 
447.1   without possibility of postponement for administrative stay or 
447.2   administrative hearing and shall continue through completion 
447.3   unless and until the findings upon which the sanctions were 
447.4   imposed are reversed by a court of competent jurisdiction.  The 
447.5   period for which sanctions are imposed is not subject to 
447.6   review.  The sanctions provided under this subdivision are in 
447.7   addition to, and not in substitution for, any other sanctions 
447.8   that may be provided for by law for the offense involved.  A 
447.9   disqualification established through hearing or waiver shall 
447.10  result in the disqualification period beginning immediately 
447.11  unless the person has become otherwise ineligible for 
447.12  assistance.  If the person is ineligible for assistance, the 
447.13  disqualification period begins when the person again meets the 
447.14  eligibility criteria of the program from which they were 
447.15  disqualified and makes application for that program. 
447.16     (b) A family receiving assistance through child care 
447.17  assistance programs under chapter 119B with a family member who 
447.18  is found to be guilty of wrongfully obtaining child care 
447.19  assistance by a federal court, state court, or an administrative 
447.20  hearing determination or waiver, through a disqualification 
447.21  consent agreement, as part of an approved diversion plan under 
447.22  section 401.065, or a court-ordered stay with probationary or 
447.23  other conditions, is disqualified from child care assistance 
447.24  programs.  The disqualifications must be for periods of three 
447.25  months, six months, and two years for the first, second, and 
447.26  third offenses respectively.  Subsequent violations must result 
447.27  in permanent disqualification.  During the disqualification 
447.28  period, disqualification from any child care program must extend 
447.29  to all child care programs and must be immediately applied. 
447.30     Sec. 2.  Minnesota Statutes 2000, section 256D.053, 
447.31  subdivision 1, is amended to read: 
447.32     Subdivision 1.  [PROGRAM ESTABLISHED.] The Minnesota food 
447.33  assistance program is established to provide food assistance to 
447.34  legal noncitizens residing in this state who are ineligible to 
447.35  participate in the federal Food Stamp Program solely due to the 
447.36  provisions of section 402 or 403 of Public Law Number 104-193, 
448.1   as authorized by Title VII of the 1997 Emergency Supplemental 
448.2   Appropriations Act, Public Law Number 105-18, and as amended by 
448.3   Public Law Number 105-185. 
448.4      Beginning July 1, 2002, the Minnesota food assistance 
448.5   program is limited to those noncitizens described in this 
448.6   subdivision who are 50 years of age or older. 
448.7      Sec. 3.  Minnesota Statutes 2000, section 256D.425, 
448.8   subdivision 1, is amended to read: 
448.9      Subdivision 1.  [PERSONS ENTITLED TO RECEIVE AID.] A person 
448.10  who is aged, blind, or 18 years of age or older and disabled and 
448.11  who is receiving supplemental security benefits under Title XVI 
448.12  on the basis of age, blindness, or disability (or would be 
448.13  eligible for such benefits except for excess income) is eligible 
448.14  for a payment under the Minnesota supplemental aid program, if 
448.15  the person's net income is less than the standards in section 
448.16  256D.44.  Persons who are not receiving supplemental security 
448.17  income benefits under Title XVI of the Social Security Act or 
448.18  disability insurance benefits under Title II of the Social 
448.19  Security Act due to exhausting time limited benefits are not 
448.20  eligible to receive benefits under the MSA program.  Persons who 
448.21  are not receiving social security or other maintenance benefits 
448.22  for failure to meet or comply with the social security or other 
448.23  maintenance program requirements are not eligible to receive 
448.24  benefits under the MSA program.  Persons who are found 
448.25  ineligible for supplemental security income because of excess 
448.26  income, but whose income is within the limits of the Minnesota 
448.27  supplemental aid program, must have blindness or disability 
448.28  determined by the state medical review team.  
448.29     Sec. 4.  [256J.021] [SEPARATE STATE PROGRAM FOR USE OF 
448.30  STATE MONEY.] 
448.31     (a) Beginning October 1, 2001, and each year thereafter, 
448.32  the commissioner of human services must treat financial 
448.33  assistance expenditures made to or on behalf of any minor child 
448.34  under section 256J.02, subdivision 2, clause (1), who is a 
448.35  resident of this state under section 256J.12, and who is part of 
448.36  a two-parent eligible household as expenditures under a 
449.1   separately funded state program and report those expenditures to 
449.2   the federal Department of Health and Human Services as separate 
449.3   state program expenditures under Code of Federal Regulations, 
449.4   title 45, section 263.5. 
449.5      (b) One parent in a two-parent eligible household may meet 
449.6   all of the family's hourly work or work activity requirements 
449.7   specified under sections 256J.49 to 256J.72, or the hourly 
449.8   requirement may be divided between the caregivers as best meets 
449.9   the family's needs as documented in the caregiver's workplans. 
449.10     Sec. 5.  Minnesota Statutes 2000, section 256J.08, 
449.11  subdivision 55a, is amended to read: 
449.12     Subd. 55a.  [MFIP STANDARD OF NEED.] "MFIP standard of 
449.13  need" means the appropriate standard used to determine MFIP 
449.14  benefit payments for the MFIP unit and applies to: 
449.15     (1) the transitional standard, sections 256J.08, 
449.16  subdivision 85, and 256J.24, subdivision 5; and 
449.17     (2) the shared household standard, section 256J.24, 
449.18  subdivision 9; and 
449.19     (3) the interstate transition standard, section 256J.43. 
449.20     Sec. 6.  Minnesota Statutes 2000, section 256J.08, is 
449.21  amended by adding a subdivision to read: 
449.22     Subd. 67a.  [PERSON TRAINED IN DOMESTIC VIOLENCE.] "Person 
449.23  trained in domestic violence" means an individual who works for 
449.24  an organization that is designated by the Minnesota center for 
449.25  crime victims services as providing services to victims of 
449.26  domestic violence, or a county staff person who has received 
449.27  similar specialized training, and includes any other person or 
449.28  organization designated by a qualifying organization under this 
449.29  section.  
449.30     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
449.31     Sec. 7.  Minnesota Statutes 2000, section 256J.21, 
449.32  subdivision 2, is amended to read: 
449.33     Subd. 2.  [INCOME EXCLUSIONS.] (a) The following must be 
449.34  excluded in determining a family's available income: 
449.35     (1) payments for basic care, difficulty of care, and 
449.36  clothing allowances received for providing family foster care to 
450.1   children or adults under Minnesota Rules, parts 9545.0010 to 
450.2   9545.0260 and 9555.5050 to 9555.6265, and payments received and 
450.3   used for care and maintenance of a third-party beneficiary who 
450.4   is not a household member; 
450.5      (2) reimbursements for employment training received through 
450.6   the Job Training Partnership Act, United States Code, title 29, 
450.7   chapter 19, sections 1501 to 1792b; 
450.8      (3) reimbursement for out-of-pocket expenses incurred while 
450.9   performing volunteer services, jury duty, employment, or 
450.10  informal carpooling arrangements directly related to employment; 
450.11     (4) all educational assistance, except the county agency 
450.12  must count graduate student teaching assistantships, 
450.13  fellowships, and other similar paid work as earned income and, 
450.14  after allowing deductions for any unmet and necessary 
450.15  educational expenses, shall count scholarships or grants awarded 
450.16  to graduate students that do not require teaching or research as 
450.17  unearned income; 
450.18     (5) loans, regardless of purpose, from public or private 
450.19  lending institutions, governmental lending institutions, or 
450.20  governmental agencies; 
450.21     (6) loans from private individuals, regardless of purpose, 
450.22  provided an applicant or participant documents that the lender 
450.23  expects repayment; 
450.24     (7)(i) state income tax refunds; and 
450.25     (ii) federal income tax refunds; 
450.26     (8)(i) federal earned income credits; 
450.27     (ii) Minnesota working family credits; 
450.28     (iii) state homeowners and renters credits under chapter 
450.29  290A; and 
450.30     (iv) federal or state tax rebates; 
450.31     (9) funds received for reimbursement, replacement, or 
450.32  rebate of personal or real property when these payments are made 
450.33  by public agencies, awarded by a court, solicited through public 
450.34  appeal, or made as a grant by a federal agency, state or local 
450.35  government, or disaster assistance organizations, subsequent to 
450.36  a presidential declaration of disaster; 
451.1      (10) the portion of an insurance settlement that is used to 
451.2   pay medical, funeral, and burial expenses, or to repair or 
451.3   replace insured property; 
451.4      (11) reimbursements for medical expenses that cannot be 
451.5   paid by medical assistance; 
451.6      (12) payments by a vocational rehabilitation program 
451.7   administered by the state under chapter 268A, except those 
451.8   payments that are for current living expenses; 
451.9      (13) in-kind income, including any payments directly made 
451.10  by a third party to a provider of goods and services; 
451.11     (14) assistance payments to correct underpayments, but only 
451.12  for the month in which the payment is received; 
451.13     (15) emergency assistance payments; 
451.14     (16) funeral and cemetery payments as provided by section 
451.15  256.935; 
451.16     (17) nonrecurring cash gifts of $30 or less, not exceeding 
451.17  $30 per participant in a calendar month; 
451.18     (18) any form of energy assistance payment made through 
451.19  Public Law Number 97-35, Low-Income Home Energy Assistance Act 
451.20  of 1981, payments made directly to energy providers by other 
451.21  public and private agencies, and any form of credit or rebate 
451.22  payment issued by energy providers; 
451.23     (19) Supplemental Security Income (SSI), including 
451.24  retroactive SSI payments and other income of an SSI recipient; 
451.25     (20) Minnesota supplemental aid, including retroactive 
451.26  payments; 
451.27     (21) proceeds from the sale of real or personal property; 
451.28     (22) adoption assistance payments under section 259.67; 
451.29     (23) state-funded family subsidy program payments made 
451.30  under section 252.32 to help families care for children with 
451.31  mental retardation or related conditions, consumer support grant 
451.32  funds under section 256.476, and resources and services for a 
451.33  disabled household member under one of the home and 
451.34  community-based waiver services programs under chapter 256B; 
451.35     (24) interest payments and dividends from property that is 
451.36  not excluded from and that does not exceed the asset limit; 
452.1      (25) rent rebates; 
452.2      (26) income earned by a minor caregiver, minor child 
452.3   through age 6, or a minor child who is at least a half-time 
452.4   student in an approved elementary or secondary education 
452.5   program; 
452.6      (27) income earned by a caregiver under age 20 who is at 
452.7   least a half-time student in an approved elementary or secondary 
452.8   education program; 
452.9      (28) MFIP child care payments under section 119B.05; 
452.10     (29) all other payments made through MFIP to support a 
452.11  caregiver's pursuit of greater self-support; 
452.12     (30) income a participant receives related to shared living 
452.13  expenses; 
452.14     (31) reverse mortgages; 
452.15     (32) benefits provided by the Child Nutrition Act of 1966, 
452.16  United States Code, title 42, chapter 13A, sections 1771 to 
452.17  1790; 
452.18     (33) benefits provided by the women, infants, and children 
452.19  (WIC) nutrition program, United States Code, title 42, chapter 
452.20  13A, section 1786; 
452.21     (34) benefits from the National School Lunch Act, United 
452.22  States Code, title 42, chapter 13, sections 1751 to 1769e; 
452.23     (35) relocation assistance for displaced persons under the 
452.24  Uniform Relocation Assistance and Real Property Acquisition 
452.25  Policies Act of 1970, United States Code, title 42, chapter 61, 
452.26  subchapter II, section 4636, or the National Housing Act, United 
452.27  States Code, title 12, chapter 13, sections 1701 to 1750jj; 
452.28     (36) benefits from the Trade Act of 1974, United States 
452.29  Code, title 19, chapter 12, part 2, sections 2271 to 2322; 
452.30     (37) war reparations payments to Japanese Americans and 
452.31  Aleuts under United States Code, title 50, sections 1989 to 
452.32  1989d; 
452.33     (38) payments to veterans or their dependents as a result 
452.34  of legal settlements regarding Agent Orange or other chemical 
452.35  exposure under Public Law Number 101-239, section 10405, 
452.36  paragraph (a)(2)(E); 
453.1      (39) income that is otherwise specifically excluded from 
453.2   MFIP consideration in federal law, state law, or federal 
453.3   regulation; 
453.4      (40) security and utility deposit refunds; 
453.5      (41) American Indian tribal land settlements excluded under 
453.6   Public Law Numbers 98-123, 98-124, and 99-377 to the Mississippi 
453.7   Band Chippewa Indians of White Earth, Leech Lake, and Mille Lacs 
453.8   reservations and payments to members of the White Earth Band, 
453.9   under United States Code, title 25, chapter 9, section 331, and 
453.10  chapter 16, section 1407; 
453.11     (42) all income of the minor parent's parents and 
453.12  stepparents when determining the grant for the minor parent in 
453.13  households that include a minor parent living with parents or 
453.14  stepparents on MFIP with other children; and 
453.15     (43) income of the minor parent's parents and stepparents 
453.16  equal to 200 percent of the federal poverty guideline for a 
453.17  family size not including the minor parent and the minor 
453.18  parent's child in households that include a minor parent living 
453.19  with parents or stepparents not on MFIP when determining the 
453.20  grant for the minor parent.  The remainder of income is deemed 
453.21  as specified in section 256J.37, subdivision 1b; 
453.22     (44) payments made to children eligible for relative 
453.23  custody assistance under section 257.85; 
453.24     (45) vendor payments for goods and services made on behalf 
453.25  of a client unless the client has the option of receiving the 
453.26  payment in cash; and 
453.27     (46) the principal portion of a contract for deed payment; 
453.28  and 
453.29     (47) participant performance bonuses under section 256J.555.
453.30     Sec. 8.  Minnesota Statutes 2000, section 256J.24, 
453.31  subdivision 2, is amended to read: 
453.32     Subd. 2.  [MANDATORY ASSISTANCE UNIT COMPOSITION.] Except 
453.33  for minor caregivers and their children who must be in a 
453.34  separate assistance unit from the other persons in the 
453.35  household, when the following individuals live together, they 
453.36  must be included in the assistance unit: 
454.1      (1) a minor child, including a pregnant minor; 
454.2      (2) the minor child's minor siblings, minor half-siblings, 
454.3   and minor step-siblings; 
454.4      (3) the minor child's natural parents, adoptive parents, 
454.5   and stepparents; and 
454.6      (4) the spouse of a pregnant woman.  
454.7      A minor child must have a caregiver for the child to be 
454.8   included in the assistance unit. 
454.9      Sec. 9.  Minnesota Statutes 2000, section 256J.24, 
454.10  subdivision 9, is amended to read: 
454.11     Subd. 9.  [SHARED HOUSEHOLD STANDARD; MFIP.] (a) Except as 
454.12  prohibited in paragraph (b), the county agency must use the 
454.13  shared household standard when the household includes one or 
454.14  more unrelated members, as that term is defined in section 
454.15  256J.08, subdivision 86a.  The county agency must use the shared 
454.16  household standard, unless a member of the assistance unit is a 
454.17  victim of domestic family violence and has an approved safety 
454.18  alternative employment plan, regardless of the number of 
454.19  unrelated members in the household. 
454.20     (b) The county agency must not use the shared household 
454.21  standard when all unrelated members are one of the following: 
454.22     (1) a recipient of public assistance benefits, including 
454.23  food stamps, Supplemental Security Income, adoption assistance, 
454.24  relative custody assistance, or foster care payments; 
454.25     (2) a roomer or boarder, or a person to whom the assistance 
454.26  unit is paying room or board; 
454.27     (3) a minor child under the age of 18; 
454.28     (4) a minor caregiver living with the minor caregiver's 
454.29  parents or in an approved supervised living arrangement; 
454.30     (5) a caregiver who is not the parent of the minor child in 
454.31  the assistance unit; or 
454.32     (6) an individual who provides child care to a child in the 
454.33  MFIP assistance unit. 
454.34     (c) The shared household standard must be discontinued if 
454.35  it is not approved by the United States Department of 
454.36  Agriculture under the MFIP waiver. 
455.1      Sec. 10.  Minnesota Statutes 2000, section 256J.24, 
455.2   subdivision 10, is amended to read: 
455.3      Subd. 10.  [MFIP EXIT LEVEL.] (a) In state fiscal years 
455.4   2000 and 2001, The commissioner shall adjust the MFIP earned 
455.5   income disregard to ensure that most participants do not lose 
455.6   eligibility for MFIP until their income reaches at least 120 
455.7   percent of the federal poverty guidelines in effect in October 
455.8   of each fiscal year.  The adjustment to the disregard shall be 
455.9   based on a household size of three, and the resulting earned 
455.10  income disregard percentage must be applied to all household 
455.11  sizes.  The adjustment under this subdivision must be 
455.12  implemented at the same time as the October food stamp 
455.13  cost-of-living adjustment is reflected in the food portion of 
455.14  MFIP transitional standard as required under subdivision 5a. 
455.15     (b) In state fiscal year 2002 and thereafter, the earned 
455.16  income disregard percentage must be the same as the percentage 
455.17  implemented in October 2000. 
455.18     Sec. 11.  Minnesota Statutes 2000, section 256J.32, 
455.19  subdivision 4, is amended to read: 
455.20     Subd. 4.  [FACTORS TO BE VERIFIED.] The county agency shall 
455.21  verify the following at application: 
455.22     (1) identity of adults; 
455.23     (2) presence of the minor child in the home, if 
455.24  questionable; 
455.25     (3) relationship of a minor child to caregivers in the 
455.26  assistance unit; 
455.27     (4) age, if necessary to determine MFIP eligibility; 
455.28     (5) immigration status; 
455.29     (6) social security number according to the requirements of 
455.30  section 256J.30, subdivision 12; 
455.31     (7) income; 
455.32     (8) self-employment expenses used as a deduction; 
455.33     (9) source and purpose of deposits and withdrawals from 
455.34  business accounts; 
455.35     (10) spousal support and child support payments made to 
455.36  persons outside the household; 
456.1      (11) real property; 
456.2      (12) vehicles; 
456.3      (13) checking and savings accounts; 
456.4      (14) savings certificates, savings bonds, stocks, and 
456.5   individual retirement accounts; 
456.6      (15) pregnancy, if related to eligibility; 
456.7      (16) inconsistent information, if related to eligibility; 
456.8      (17) medical insurance; 
456.9      (18) burial accounts; 
456.10     (19) school attendance, if related to eligibility; 
456.11     (20) residence; 
456.12     (21) a claim of domestic family violence if used as a basis 
456.13  for a deferral or exemption waiver from the 60-month time limit 
456.14  in section 256J.42 or and regular employment and training 
456.15  services requirements in section 256J.56; 
456.16     (22) disability if used as an exemption from employment and 
456.17  training services requirements under section 256J.56; and 
456.18     (23) information needed to establish an exception under 
456.19  section 256J.24, subdivision 9. 
456.20     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
456.21     Sec. 12.  Minnesota Statutes 2000, section 256J.37, 
456.22  subdivision 9, is amended to read: 
456.23     Subd. 9.  [UNEARNED INCOME.] (a) The county agency must 
456.24  apply unearned income to the MFIP standard of need.  When 
456.25  determining the amount of unearned income, the county agency 
456.26  must deduct the costs necessary to secure payments of unearned 
456.27  income.  These costs include legal fees, medical fees, and 
456.28  mandatory deductions such as federal and state income taxes. 
456.29     (b) Effective July 1, 2001, the county agency shall count 
456.30  $100 of the value of public and assisted rental subsidies 
456.31  provided through the Department of Housing and Urban Development 
456.32  (HUD) as unearned income.  The full amount of the subsidy must 
456.33  be counted as unearned income when the subsidy is less than $100.
456.34     (c) The provisions of paragraph (b) shall not apply to MFIP 
456.35  participants who are exempt from the employment and training 
456.36  services component because they are: 
457.1      (i) individuals who are age 60 or older; 
457.2      (ii) individuals who are suffering from a professionally 
457.3   certified permanent or temporary illness, injury, or incapacity 
457.4   which is expected to continue for more than 30 days and which 
457.5   prevents the person from obtaining or retaining employment; or 
457.6      (iii) caregivers whose presence in the home is required 
457.7   because of the professionally certified illness or incapacity of 
457.8   another member in the assistance unit, a relative in the 
457.9   household, or a foster child in the household. 
457.10     (d) The provisions of paragraph (b) shall not apply to an 
457.11  MFIP assistance unit where the parental caregiver receives 
457.12  supplemental security income. 
457.13     Sec. 13.  Minnesota Statutes 2000, section 256J.39, 
457.14  subdivision 2, is amended to read: 
457.15     Subd. 2.  [PROTECTIVE AND VENDOR PAYMENTS.] Alternatives to 
457.16  paying assistance directly to a participant may be used when: 
457.17     (1) a county agency determines that a vendor payment is the 
457.18  most effective way to resolve an emergency situation pertaining 
457.19  to basic needs; 
457.20     (2) a caregiver makes a written request to the county 
457.21  agency asking that part or all of the assistance payment be 
457.22  issued by protective or vendor payments for shelter and utility 
457.23  service only.  The caregiver may withdraw this request in 
457.24  writing at any time; 
457.25     (3) the vendor payment is part of a sanction under section 
457.26  256J.46; 
457.27     (4) the vendor payment is required under section 256J.24, 
457.28  subdivision 8, or 256J.26, or 256J.43; 
457.29     (5) protective payments are required for minor parents 
457.30  under section 256J.14; or 
457.31     (6) a caregiver has exhibited a continuing pattern of 
457.32  mismanaging funds as determined by the county agency. 
457.33     The director of a county agency, or the director's 
457.34  designee, must approve a proposal for protective or vendor 
457.35  payment for money mismanagement when there is a pattern of 
457.36  mismanagement under clause (6).  During the time a protective or 
458.1   vendor payment is being made, the county agency must provide 
458.2   services designed to alleviate the causes of the mismanagement. 
458.3      The continuing need for and method of payment must be 
458.4   documented and reviewed every 12 months.  The director of a 
458.5   county agency or the director's designee must approve the 
458.6   continuation of protective or vendor payments.  When it appears 
458.7   that the need for protective or vendor payments will continue or 
458.8   is likely to continue beyond two years because the county 
458.9   agency's efforts have not resulted in sufficiently improved use 
458.10  of assistance on behalf of the minor child, judicial appointment 
458.11  of a legal guardian or other legal representative must be sought 
458.12  by the county agency.  
458.13     Sec. 14.  Minnesota Statutes 2000, section 256J.42, 
458.14  subdivision 1, is amended to read: 
458.15     Subdivision 1.  [TIME LIMIT.] (a) Except for the exemptions 
458.16  as otherwise provided for in this section, an assistance unit in 
458.17  which any adult caregiver has received 60 months of cash 
458.18  assistance funded in whole or in part by the TANF block grant in 
458.19  this or any other state or United States territory, or from a 
458.20  tribal TANF program, MFIP, the AFDC program formerly codified in 
458.21  sections 256.72 to 256.87, or the family general assistance 
458.22  program formerly codified in sections 256D.01 to 256D.23, funded 
458.23  in whole or in part by state appropriations, is ineligible to 
458.24  receive MFIP.  Any cash assistance funded with TANF dollars in 
458.25  this or any other state or United States territory, or from a 
458.26  tribal TANF program, or MFIP assistance funded in whole or in 
458.27  part by state appropriations, that was received by the unit on 
458.28  or after the date TANF was implemented, including any assistance 
458.29  received in states or United States territories of prior 
458.30  residence, counts toward the 60-month limitation.  The 60-month 
458.31  limit applies to a minor who is the head of a household or who 
458.32  is married to the head of a household caregiver except under 
458.33  subdivision 5.  The 60-month time period does not need to be 
458.34  consecutive months for this provision to apply.  
458.35     (b) The months before July 1998 in which individuals 
458.36  received assistance as part of the field trials as an MFIP, 
459.1   MFIP-R, or MFIP or MFIP-R comparison group family are not 
459.2   included in the 60-month time limit. 
459.3      Sec. 15.  Minnesota Statutes 2000, section 256J.42, 
459.4   subdivision 3, is amended to read: 
459.5      Subd. 3.  [ADULTS LIVING ON AN IN INDIAN 
459.6   RESERVATION COUNTRY.] In determining the number of months for 
459.7   which an adult has received assistance under MFIP-S, the county 
459.8   agency must disregard any month during which the adult lived on 
459.9   an in Indian reservation country if during the month at least 50 
459.10  percent of the adults living on the reservation in Indian 
459.11  country were not employed. 
459.12     Sec. 16.  Minnesota Statutes 2000, section 256J.42, 
459.13  subdivision 4, is amended to read: 
459.14     Subd. 4.  [VICTIMS OF DOMESTIC FAMILY VIOLENCE.] Any cash 
459.15  assistance received by an assistance unit in a month when a 
459.16  caregiver is complying complied with a safety plan or after 
459.17  October 1, 2001, complied or is complying with an alternative 
459.18  employment plan under the MFIP-S employment and training 
459.19  component section 256J.49, subdivision 1a, does not count toward 
459.20  the 60-month limitation on assistance. 
459.21     Sec. 17.  Minnesota Statutes 2000, section 256J.42, 
459.22  subdivision 5, is amended to read: 
459.23     Subd. 5.  [EXEMPTION FOR CERTAIN FAMILIES.] (a) Any cash 
459.24  assistance received by an assistance unit does not count toward 
459.25  the 60-month limit on assistance during a month in which the 
459.26  caregiver (1) is in the a category in section 256J.56, paragraph 
459.27  (a), clause (1); (2) is earning income and participating in work 
459.28  activities, as defined in section 256J.49, subdivision 13, for 
459.29  at least 40 hours per week for a two-parent family, 20 hours per 
459.30  week for a single-parent family with a child under age six 
459.31  years, or 30 hours per week for a single-parent family with a 
459.32  child age 6 years or older.  If the individualized plan requires 
459.33  fewer hours of work activities, then it is the number of hours 
459.34  required in the plan; or (3) is in an education or training 
459.35  program, including, but not limited to, an English as a second 
459.36  language (ESL) program, in which the combination of work 
460.1   activities and education are for at least 40 hours per week for 
460.2   a two-parent family, or 20 hours per week for a single-parent 
460.3   family with a child under age six years, or 30 hours per week 
460.4   for a single-parent family with a child age 6 years or older.  
460.5   If the individualized plan requires fewer hours of work 
460.6   activities, then it is the number of hours required in the plan. 
460.7      (b) From July 1, 1997, until the date MFIP is operative in 
460.8   the caregiver's county of financial responsibility, any cash 
460.9   assistance received by a caregiver who is complying with 
460.10  Minnesota Statutes 1996, section 256.73, subdivision 5a, and 
460.11  Minnesota Statutes 1998, section 256.736, if applicable, does 
460.12  not count toward the 60-month limit on assistance.  Thereafter, 
460.13  any cash assistance received by a minor caregiver who is 
460.14  complying with the requirements of sections 256J.14 and 256J.54, 
460.15  if applicable, does not count towards the 60-month limit on 
460.16  assistance. 
460.17     (c) Any diversionary assistance or emergency assistance 
460.18  received does not count toward the 60-month limit. 
460.19     (d) (c) Any cash assistance received by an 18- or 
460.20  19-year-old caregiver who is complying with the requirements of 
460.21  section 256J.54 does not count toward the 60-month limit. 
460.22     Sec. 18.  [256J.422] [60-MONTH TIME LIMIT REVIEW; 
460.23  EXTENSION; APPEAL.] 
460.24     Subdivision 1.  [EXTENSION OF 60-MONTH TIME LIMIT.] At the 
460.25  end of the participant's eligibility period when TANF assistance 
460.26  has been exhausted, the participant's time limit will be 
460.27  extended provided the participant meets the MFIP eligibility 
460.28  criteria.  Participants must comply with MFIP requirements or be 
460.29  subject to a sanction.  The county may choose not to provide an 
460.30  extension for participants if after a face-to-face review, the 
460.31  participant does not fall under any of the categories in 
460.32  subdivision 2. 
460.33     Subd. 2.  [REVIEW.] (a) A county representative may 
460.34  schedule a face-to-face review with a participant who is nearing 
460.35  the 60-month time limit on TANF assistance.  The face-to-face 
460.36  review must be conducted with a county representative, a 
461.1   representative from a legal rights organization that primarily 
461.2   represents low-income individuals or an advocate, and the 
461.3   participant, unless the participant requests that a 
461.4   representative or advocate not be present during the review.  A 
461.5   face-to-face review with the participant must be conducted 
461.6   before the participant is denied an extension.  The county 
461.7   representative makes the final determination regarding the 
461.8   extension of assistance. 
461.9      (b) In the face-to-face review, the individuals in 
461.10  attendance shall determine if: 
461.11     (1) the participant's plan is inappropriate or if it should 
461.12  be modified in order for the participant to reduce barriers or 
461.13  achieve goals that will lead to long-term self-sufficiency; 
461.14     (2) the participant falls under any of the exempt 
461.15  categories in section 256J.42; 
461.16     (3) there are other substantial barriers that need to be 
461.17  addressed, which include, but are not limited to, language 
461.18  barriers, physical or mental health needs, or learning 
461.19  disabilities; 
461.20     (4) there are services that were required to be provided or 
461.21  necessary in order to fulfill the requirements of the plan that 
461.22  were unavailable to the participant; 
461.23     (5) there are educational opportunities that will lead to 
461.24  self-sufficiency that were not allowed or offered to the 
461.25  participant; 
461.26     (6) the participant's plan is appropriate and the 
461.27  participant is meeting the expectations of the participant's 
461.28  individualized plan, or in a two-parent family, at least one 
461.29  participant has an appropriate plan and is meeting the 
461.30  expectations of that individualized plan; 
461.31     (7) the employment held by the participant will not provide 
461.32  a wage of at least 120 percent of the federal poverty guidelines 
461.33  for the same family size, or in a two-parent family, when at 
461.34  least one parent is cooperating with the program requirements, 
461.35  the employment held by the cooperating participant will not 
461.36  provide a wage of at least 120 percent of the federal poverty 
462.1   guidelines for the same family size; or 
462.2      (8) there are other issues that need to be addressed before 
462.3   the participant is denied an extension. 
462.4      Subd. 3.  [APPEAL OF COUNTY DECISION.] If the county denies 
462.5   an extension under subdivision 2, the participant may appeal the 
462.6   decision under section 256J.40.  Assistance must continue until 
462.7   the appeal is resolved. 
462.8      Sec. 19.  Minnesota Statutes 2000, section 256J.45, 
462.9   subdivision 1, is amended to read: 
462.10     Subdivision 1.  [COUNTY AGENCY TO PROVIDE ORIENTATION.] A 
462.11  county agency must provide orientation to each MFIP caregiver 
462.12  who is not exempt under section 256J.56, paragraph (a), clause 
462.13  (6) or (8) unless the caregiver:  (1) is a single parent, or one 
462.14  parent in a two-parent family, employed at least 35 hours per 
462.15  week; or (2) a second parent in a two-parent family who is 
462.16  employed for 20 or more hours per week provided the first parent 
462.17  is employed at least 35 hours per week, with a face-to-face 
462.18  orientation.  The county agency must inform caregivers who are 
462.19  not exempt under section 256J.56, paragraph (a), clause (6) or 
462.20  (8), clause (1) or (2) that failure to attend the orientation is 
462.21  considered an occurrence of noncompliance with program 
462.22  requirements, and will result in the imposition of a sanction 
462.23  under section 256J.46.  If the client complies with the 
462.24  orientation requirement prior to the first day of the month in 
462.25  which the grant reduction is proposed to occur, the orientation 
462.26  sanction shall be lifted.  
462.27     Sec. 20.  Minnesota Statutes 2000, section 256J.45, 
462.28  subdivision 2, is amended to read: 
462.29     Subd. 2.  [GENERAL INFORMATION.] The MFIP-S MFIP 
462.30  orientation must consist of a presentation that informs 
462.31  caregivers of: 
462.32     (1) the necessity to obtain immediate employment; 
462.33     (2) the work incentives under MFIP-S MFIP, including the 
462.34  availability of the federal earned income tax credit and the 
462.35  Minnesota working family tax credit; 
462.36     (3) the requirement to comply with the employment plan and 
463.1   other requirements of the employment and training services 
463.2   component of MFIP-S MFIP, including a description of the range 
463.3   of work and training activities that are allowable under MFIP-S 
463.4   MFIP to meet the individual needs of participants; 
463.5      (4) the consequences for failing to comply with the 
463.6   employment plan and other program requirements, and that the 
463.7   county agency may not impose a sanction when failure to comply 
463.8   is due to the unavailability of child care or other 
463.9   circumstances where the participant has good cause under 
463.10  subdivision 3; 
463.11     (5) the rights, responsibilities, and obligations of 
463.12  participants; 
463.13     (6) the types and locations of child care services 
463.14  available through the county agency; 
463.15     (7) the availability and the benefits of the early 
463.16  childhood health and developmental screening under sections 
463.17  121A.16 to 121A.19; 123B.02, subdivision 16; and 123B.10; 
463.18     (8) the caregiver's eligibility for transition year child 
463.19  care assistance under section 119B.05; 
463.20     (9) the caregiver's eligibility for extended medical 
463.21  assistance when the caregiver loses eligibility for MFIP-S MFIP 
463.22  due to increased earnings or increased child or spousal support; 
463.23     (10) the caregiver's option to choose an employment and 
463.24  training provider and information about each provider, including 
463.25  but not limited to, services offered, program components, job 
463.26  placement rates, job placement wages, and job retention rates; 
463.27     (11) the caregiver's option to request approval of an 
463.28  education and training plan according to section 256J.52; and 
463.29     (12) the work study programs available under the higher 
463.30  education system; and 
463.31     (13) effective October 1, 2001, information about the 
463.32  60-month time limit exemption and waivers of regular employment 
463.33  and training requirements for family violence victims and 
463.34  referral information about shelters and programs for victims of 
463.35  family violence. 
463.36     Sec. 21.  Minnesota Statutes 2000, section 256J.46, 
464.1   subdivision 1, is amended to read: 
464.2      Subdivision 1.  [SANCTIONS FOR PARTICIPANTS NOT COMPLYING 
464.3   WITH PROGRAM REQUIREMENTS.] (a) A participant who fails without 
464.4   good cause to comply with the requirements of this chapter, and 
464.5   who is not subject to a sanction under subdivision 2, shall be 
464.6   subject to a sanction as provided in this subdivision.  A 
464.7   participant who fails to comply with an alternative employment 
464.8   plan must have the plan reviewed by a person trained in domestic 
464.9   violence and the county or a job counselor to determine if 
464.10  components of the alternative employment plan are still 
464.11  appropriate.  If the activities are no longer appropriate, the 
464.12  plan must be revised with a person trained in domestic violence 
464.13  and approved by the county or a job counselor.  A participant 
464.14  who fails to comply with a plan that is determined not to need 
464.15  revision will lose their exemption and be required to comply 
464.16  with regular employment services activities.  
464.17     A sanction must not be imposed for the sole purpose of 
464.18  failing to participate in work activities for a specified number 
464.19  of hours if the participant is a single parent or one parent in 
464.20  a two-parent family and is employed at least 35 hours per week. 
464.21     A sanction under this subdivision becomes effective the 
464.22  month following the month in which a required notice is given.  
464.23  A sanction must not be imposed when a participant comes into 
464.24  compliance with the requirements for orientation under section 
464.25  256J.45 or third-party liability for medical services under 
464.26  section 256J.30, subdivision 10, prior to the effective date of 
464.27  the sanction.  A sanction must not be imposed when a participant 
464.28  comes into compliance with the requirements for employment and 
464.29  training services under sections 256J.49 to 256J.72 ten days 
464.30  prior to the effective date of the sanction.  For purposes of 
464.31  this subdivision, each month that a participant fails to comply 
464.32  with a requirement of this chapter shall be considered a 
464.33  separate occurrence of noncompliance.  A participant who has had 
464.34  one or more sanctions imposed must remain in compliance with the 
464.35  provisions of this chapter for six months in order for a 
464.36  subsequent occurrence of noncompliance to be considered a first 
465.1   occurrence.  
465.2      (b) Sanctions for noncompliance shall be imposed as follows:
465.3      (1) For the first occurrence of noncompliance by a 
465.4   participant in a single-parent household or by one participant 
465.5   in a two-parent household, the job counselor must initiate 
465.6   personal contact with the participant by either having a 
465.7   personal meeting with the participant or a telephone 
465.8   conversation with the participant, and thoroughly review the 
465.9   exemption and good cause categories with the participant to 
465.10  determine if the participant falls under one or more of the 
465.11  categories.  If the participant does not fall under an exemption 
465.12  or good cause category, the assistance unit's grant shall be 
465.13  reduced by ten percent of the MFIP standard of need for an 
465.14  assistance unit of the same size with the residual grant paid to 
465.15  the participant.  The reduction in the grant amount must be in 
465.16  effect for a minimum of one month and shall be removed in the 
465.17  month following the month that the participant returns to 
465.18  compliance.  
465.19     (2) For a second or subsequent occurrence of noncompliance, 
465.20  or when both participants in a two-parent household are out of 
465.21  compliance at the same time, the assistance unit's shelter costs 
465.22  shall be vendor paid up to the amount of the cash portion of the 
465.23  MFIP grant for which the participant's assistance unit is 
465.24  eligible.  At county option, the assistance unit's utilities may 
465.25  also be vendor paid up to the amount of the cash portion of the 
465.26  MFIP grant remaining after vendor payment of the assistance 
465.27  unit's shelter costs.  The residual amount of the grant after 
465.28  vendor payment, if any, must be reduced by an amount equal to 30 
465.29  percent of the MFIP standard of need for an assistance unit of 
465.30  the same size before the residual grant is paid to the 
465.31  assistance unit.  The reduction in the grant amount must be in 
465.32  effect for a minimum of one month and shall be removed in the 
465.33  month following the month that a participant in a one-parent 
465.34  household returns to compliance.  In a two-parent household, the 
465.35  grant reduction must be in effect for a minimum of one month and 
465.36  shall be removed in the month following the month both 
466.1   participants return to compliance.  The vendor payment of 
466.2   shelter costs and, if applicable, utilities shall be removed six 
466.3   months after the month in which the participant or participants 
466.4   return to compliance. 
466.5      (3) The food portion of the MFIP grant must not be 
466.6   sanctioned. 
466.7      (c) No later than during the second month that a sanction 
466.8   under paragraph (b), clause (2), is in effect due to 
466.9   noncompliance with employment services, the participant's case 
466.10  file must be reviewed to determine if: 
466.11     (i) the continued noncompliance can be explained and 
466.12  mitigated by providing a needed preemployment activity, as 
466.13  defined in section 256J.49, subdivision 13, clause (16); 
466.14     (ii) the participant qualifies for a good cause exception 
466.15  under section 256J.57; or 
466.16     (iii) the participant qualifies for an exemption under 
466.17  section 256J.56; or 
466.18     (iv) the participant qualifies for a waiver under section 
466.19  256J.52, subdivision 6. 
466.20     If the lack of an identified activity can explain the 
466.21  noncompliance, the county must work with the participant to 
466.22  provide the identified activity, and the county must restore the 
466.23  participant's grant amount to the full amount for which the 
466.24  assistance unit is eligible.  The grant must be restored 
466.25  retroactively to the first day of the month in which the 
466.26  participant was found to lack preemployment activities or to 
466.27  qualify for an exemption or, a good cause exception, or a family 
466.28  violence waiver. 
466.29     If the participant is found to qualify for a good cause 
466.30  exception or an exemption, or a family violence waiver, the 
466.31  county must restore the participant's grant to the full amount 
466.32  for which the assistance unit is eligible.  
466.33     (d) In the two-parent MFIP program under section 256J.021 
466.34  if only one caregiver is out of compliance with the requirements 
466.35  for employment and training under sections 256J.49 to 256J.72, 
466.36  the MFIP grant shall be reduced by either ten percent or 30 
467.1   percent of the noncompliant parent's portion of the transitional 
467.2   standard, whichever is applicable to the sanction occurrence.  
467.3      <b>[EFFECTIVE DATE.]</b> The language in this section related to 
467.4   domestic or family violence is effective October 1, 2001. 
467.5      Sec. 22.  Minnesota Statutes 2000, section 256J.48, 
467.6   subdivision 1, is amended to read: 
467.7      Subdivision 1.  [EMERGENCY FINANCIAL ASSISTANCE.] County 
467.8   human service agencies shall grant emergency financial 
467.9   assistance to any needy pregnant woman or needy family with a 
467.10  child under the age of 21 who is or was within six months prior 
467.11  to application living with an eligible caregiver relative 
467.12  specified in section 256J.08. 
467.13     Except for ongoing special diets, emergency assistance is 
467.14  available to a family during one 30-day period in for up to two 
467.15  times a year, not to exceed a maximum of 120 days within a 
467.16  consecutive 12-month period.  A county shall issue assistance 
467.17  for needs that accrue before that 30-day period the eligibility 
467.18  period only when it is necessary to resolve emergencies arising 
467.19  or continuing during the 30-day period of eligibility.  When 
467.20  emergency needs continue, a county may issue assistance for up 
467.21  to 30 days beyond the initial 30-day period of eligibility, but 
467.22  only when assistance is authorized during the initial period. 
467.23     Sec. 23.  Minnesota Statutes 2000, section 256J.48, is 
467.24  amended by adding a subdivision to read: 
467.25     Subd. 1a.  [PROCESSING EMERGENCY APPLICATIONS.] Within 
467.26  seven days of receiving the application, or sooner if the 
467.27  immediacy and severity of the situation warrants it, families 
467.28  must be notified in writing whether their application was 
467.29  approved, denied, or pended. 
467.30     Sec. 24.  Minnesota Statutes 2000, section 256J.49, is 
467.31  amended by adding a subdivision to read: 
467.32     Subd. 1a.  [ALTERNATIVE EMPLOYMENT PLAN.] "Alternative 
467.33  employment plan" means a plan that is based on an individualized 
467.34  assessment of need and is developed with a person trained in 
467.35  domestic violence and approved by the county or a job 
467.36  counselor.  The plan may address safety, legal or emotional 
468.1   issues, and other demands on the family as a result of the 
468.2   family violence.  The information in section 256J.515, clauses 
468.3   (1) to (8), must be included as part of the development of the 
468.4   alternative employment plan.  The primary goal of an alternative 
468.5   employment plan is to ensure the safety of the caregiver and 
468.6   children.  To the extent it is consistent with ensuring safety, 
468.7   an alternative employment plan shall also include activities 
468.8   that are designed to lead to self-sufficiency.  An activity is 
468.9   inconsistent with ensuring safety if, in the opinion of a person 
468.10  trained in domestic violence, the activity would endanger the 
468.11  safety of the participant or children.  An alternative 
468.12  employment plan may not automatically include a provision that 
468.13  requires a participant to obtain an order for protection or to 
468.14  attend counseling. 
468.15     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
468.16     Sec. 25.  Minnesota Statutes 2000, section 256J.49, 
468.17  subdivision 2, is amended to read: 
468.18     Subd. 2.  [DOMESTIC FAMILY VIOLENCE.] "Domestic Family 
468.19  violence" means: 
468.20     (1) physical acts that result, or threaten to result in, 
468.21  physical injury to an individual; 
468.22     (2) sexual abuse; 
468.23     (3) sexual activity involving a minor child; 
468.24     (4) being forced as the caregiver of a minor child to 
468.25  engage in nonconsensual sexual acts or activities; 
468.26     (5) threats of, or attempts at, physical or sexual abuse; 
468.27     (6) mental abuse; or 
468.28     (7) neglect or deprivation of medical care. 
468.29  Claims of family violence must be documented by the applicant or 
468.30  participant providing a sworn statement, which is supported by 
468.31  collateral documentation.  Collateral documentation may consist 
468.32  of any one of the following: 
468.33     (1) police, government agency, or court records; 
468.34     (2) a statement from a battered woman's shelter staff with 
468.35  knowledge of circumstances or credible evidence that supports 
468.36  the sworn statement; 
469.1      (3) a statement from a sexual assault or domestic violence 
469.2   advocate with knowledge of the circumstances or credible 
469.3   evidence that supports a sworn statement; 
469.4      (4) a statement from professionals from whom the applicant 
469.5   or recipient has sought assistance for the abuse; or 
469.6      (5) a sworn statement from any other individual with 
469.7   knowledge of circumstances or credible evidence that supports 
469.8   the sworn statement. 
469.9      <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
469.10     Sec. 26.  Minnesota Statutes 2000, section 256J.49, 
469.11  subdivision 13, is amended to read: 
469.12     Subd. 13.  [WORK ACTIVITY.] "Work activity" means any 
469.13  activity in a participant's approved employment plan that is 
469.14  tied to the participant's employment goal.  For purposes of the 
469.15  MFIP program, any activity that is included in a participant's 
469.16  approved employment plan meets the definition of work activity 
469.17  as counted under the federal participation standards.  Work 
469.18  activity includes, but is not limited to: 
469.19     (1) unsubsidized employment; 
469.20     (2) subsidized private sector or public sector employment, 
469.21  including grant diversion as specified in section 256J.69; 
469.22     (3) work experience, including CWEP as specified in section 
469.23  256J.67, and including work associated with the refurbishing of 
469.24  publicly assisted housing if sufficient private sector 
469.25  employment is not available; 
469.26     (4) on-the-job training as specified in section 256J.66; 
469.27     (5) job search, either supervised or unsupervised; 
469.28     (6) job readiness assistance; 
469.29     (7) job clubs, including job search workshops; 
469.30     (8) job placement; 
469.31     (9) job development; 
469.32     (10) job-related counseling; 
469.33     (11) job coaching; 
469.34     (12) job retention services; 
469.35     (13) job-specific training or education; 
469.36     (14) job skills training directly related to employment; 
470.1      (15) the self-employment investment demonstration (SEID), 
470.2   as specified in section 256J.65; 
470.3      (16) preemployment activities, based on availability and 
470.4   resources, such as volunteer work, literacy programs and related 
470.5   activities, citizenship classes, English as a second language 
470.6   (ESL) classes as limited by the provisions of section 256J.52, 
470.7   subdivisions 3, paragraph (d), and 5, paragraph (c), or 
470.8   participation in dislocated worker services, chemical dependency 
470.9   treatment, mental health services, peer group networks, 
470.10  displaced homemaker programs, strength-based resiliency 
470.11  training, parenting education, or other programs designed to 
470.12  help families reach their employment goals and enhance their 
470.13  ability to care for their children; 
470.14     (17) community service programs; 
470.15     (18) vocational educational training or educational 
470.16  programs that can reasonably be expected to lead to employment, 
470.17  as limited by the provisions of section 256J.53; 
470.18     (19) apprenticeships; 
470.19     (20) satisfactory attendance in general educational 
470.20  development diploma classes or an adult diploma program; 
470.21     (21) satisfactory attendance at secondary school, if the 
470.22  participant has not received a high school diploma; 
470.23     (22) adult basic education classes; 
470.24     (23) internships; 
470.25     (24) bilingual employment and training services; 
470.26     (25) providing child care services to a participant who is 
470.27  working in a community service program; and 
470.28     (26) activities included in a safety an alternative 
470.29  employment plan that is developed under section 256J.52, 
470.30  subdivision 6. 
470.31     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
470.32     Sec. 27.  Minnesota Statutes 2000, section 256J.50, 
470.33  subdivision 5, is amended to read: 
470.34     Subd. 5.  [PARTICIPATION REQUIREMENTS FOR ALL CASES.] (a) 
470.35  For two-parent cases, participation is required concurrent with 
470.36  the receipt of MFIP cash assistance.  
471.1      For single-parent cases, participation is required 
471.2   concurrent with the receipt of MFIP cash assistance for all 
471.3   counties except Blue Earth and Nicollet, effective July 1, 2000, 
471.4   and is required for Blue Earth and Nicollet counties effective 
471.5   January 1, 2001.  For Blue Earth and Nicollet counties only, 
471.6   from July 1, 2000 to December 31, 2000, mandatory participation 
471.7   for single-parent cases must be required within six months of 
471.8   eligibility for cash assistance. 
471.9      (b) Beginning January 1, 1998, with the exception of 
471.10  caregivers required to attend high school under the provisions 
471.11  of section 256J.54, subdivision 5, MFIP caregivers, upon 
471.12  completion of the secondary assessment, must develop an 
471.13  employment plan and participate in work activities. 
471.14     (c) Upon completion of the secondary assessment: 
471.15     (1) In single-parent families with no children under six 
471.16  years of age, the job counselor and the caregiver must develop 
471.17  an employment plan that includes 20 to 35 hours per week of work 
471.18  activities for the period January 1, 1998, to September 30, 
471.19  1998; 25 to 35 hours of work activities per week in federal 
471.20  fiscal year 1999; and 30 to 35 hours per week of work activities 
471.21  in federal fiscal year 2000 and thereafter. 
471.22     (2) In single-parent families with a child under six years 
471.23  of age, the job counselor and the caregiver must develop an 
471.24  employment plan that includes 20 to 35 hours per week of work 
471.25  activities. 
471.26     (3) In two-parent families, the job counselor and the 
471.27  caregivers must develop employment plans which result in a 
471.28  combined total of at least 55 hours per week of work activities, 
471.29  of which at least 30 hours must be completed by one of the 
471.30  parents. 
471.31     Sec. 28.  Minnesota Statutes 2000, section 256J.50, 
471.32  subdivision 10, is amended to read: 
471.33     Subd. 10.  [REQUIRED NOTIFICATION TO VICTIMS OF DOMESTIC 
471.34  FAMILY VIOLENCE.] County agencies and their contractors must 
471.35  provide universal notification to all applicants and recipients 
471.36  of MFIP-S MFIP that: 
472.1      (1) referrals to counseling and supportive services are 
472.2   available for victims of domestic family violence; 
472.3      (2) nonpermanent resident battered individuals married to 
472.4   United States citizens or permanent residents may be eligible to 
472.5   petition for permanent residency under the federal Violence 
472.6   Against Women Act, and that referrals to appropriate legal 
472.7   services are available; 
472.8      (3) victims of domestic family violence are exempt from 
472.9   eligible for an extension of the 60-month limit on assistance 
472.10  while the individual is complying with an approved safety plan, 
472.11  as defined in section 256J.49, subdivision 11; and 
472.12     (4) victims of domestic family violence may choose to be 
472.13  exempt or deferred from have regular work requirements for up to 
472.14  12 months waived while the individual is complying with 
472.15  an approved safety alternative employment plan as defined in 
472.16  section 256J.49, subdivision 11 1a.  
472.17     If an alternative plan is denied, the county or a job 
472.18  counselor must provide reasons why the plan is not approved and 
472.19  document how the denial of the plan does not interfere with the 
472.20  safety of the participant or children. 
472.21     Notification must be in writing and orally at the time of 
472.22  application and recertification, when the individual is referred 
472.23  to the title IV-D child support agency, and at the beginning of 
472.24  any job training or work placement assistance program. 
472.25     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
472.26     Sec. 29.  Minnesota Statutes 2000, section 256J.50, is 
472.27  amended by adding a subdivision to read: 
472.28     Subd. 12.  [ACCESS TO PERSONS TRAINED IN DOMESTIC 
472.29  VIOLENCE.] In a county where there is no staff person who is 
472.30  trained in domestic violence, as that term is defined in section 
472.31  256J.08, subdivision 67a, the county must work with the nearest 
472.32  organization that is designated as providing services to victims 
472.33  of domestic violence to develop a process, which ensures that 
472.34  domestic violence victims have access to a person trained in 
472.35  domestic violence. 
472.36     <b>[EFFECTIVE DATE.]</b> This section is effective October 1, 2001.
473.1      Sec. 30.  Minnesota Statutes 2000, section 256J.515, is 
473.2   amended to read: 
473.3      256J.515 [OVERVIEW OF EMPLOYMENT AND TRAINING SERVICES.] 
473.4      During the first meeting with participants, job counselors 
473.5   must ensure that an overview of employment and training services 
473.6   is provided that: 
473.7      (1) stresses the necessity and opportunity of immediate 
473.8   employment; 
473.9      (2) outlines the job search resources offered; 
473.10     (3) outlines education or training opportunities available; 
473.11     (4) describes the range of work activities, including 
473.12  activities under section 256J.49, subdivision 13, clause (18), 
473.13  that are allowable under MFIP to meet the individual needs of 
473.14  participants; 
473.15     (5) explains the requirements to comply with an employment 
473.16  plan; 
473.17     (6) explains the consequences for failing to comply; and 
473.18     (7) explains the services that are available to support job 
473.19  search and work and education; and 
473.20     (8) provides referral information about shelters and 
473.21  programs for victims of family violence, the time limit 
473.22  exemption, and waivers of regular employment and training 
473.23  requirements for family violence victims. 
473.24     Failure to attend the overview of employment and training 
473.25  services without good cause results in the imposition of a 
473.26  sanction under section 256J.46. 
473.27     Effective October 1, 2001, a participant who has an 
473.28  alternative employment plan under section 256J.52, subdivision 
473.29  6, as defined in section 256J.49, subdivision 1a, or who is in 
473.30  the process of developing such a plan, is exempt from the 
473.31  requirement to attend the overview. 
473.32     Sec. 31.  Minnesota Statutes 2000, section 256J.52, 
473.33  subdivision 2, is amended to read: 
473.34     Subd. 2.  [INITIAL ASSESSMENT.] (a) The job counselor must, 
473.35  with the cooperation of the participant, assess the 
473.36  participant's ability to obtain and retain employment.  This 
474.1   initial assessment must include a review of the participant's 
474.2   education level, prior employment or work experience, 
474.3   transferable work skills, and existing job markets. 
474.4      (b) In assessing the participant, the job counselor must 
474.5   determine if the participant needs refresher courses for 
474.6   professional certification or licensure, in which case, the job 
474.7   search plan under subdivision 3 must include the courses 
474.8   necessary to obtain the certification or licensure, in addition 
474.9   to other work activities, provided the combination of the 
474.10  courses and other work activities are at least for 40 hours per 
474.11  week.  
474.12     (c) If a participant can demonstrate to the satisfaction of 
474.13  the county agency that lack of proficiency in English is a 
474.14  barrier to obtaining suitable employment, the job counselor must 
474.15  include participation in an intensive English as a second 
474.16  language program if available or otherwise a regular English as 
474.17  a second language program in the individual's employment plan 
474.18  under subdivision 5.  Lack of proficiency in English is not 
474.19  necessarily a barrier to employment.  
474.20     (d) The job counselor may shall approve an education or 
474.21  training plan, and postpone the job search requirement, if less 
474.22  than 30 percent of the statewide MFIP caseload is participating 
474.23  in education and training, and if the participant has a proposal 
474.24  for an education program which: 
474.25     (1) can be completed within 12 24 months; 
474.26     (2) meets the criteria of section 256J.53, subdivisions 2, 
474.27  3, and 5; and 
474.28     (3) is likely, without additional training, to lead to 
474.29  monthly employment earnings which, after subtraction of the 
474.30  earnings disregard under section 256J.21, equal or exceed the 
474.31  family wage level for the participant's assistance unit. 
474.32     (e) A participant who, at the time of the initial 
474.33  assessment, presents a plan that includes farming as a 
474.34  self-employed work activity must have an employment plan 
474.35  developed under subdivision 5 that includes the farming as an 
474.36  approved work activity. 
475.1      (f) Effective October 1, 2001, an alternative employment 
475.2   plan must be offered and explained to a participant who at any 
475.3   time declares or reveals current or past family violence.  If 
475.4   the participant is interested, an alternative employment plan 
475.5   must be developed and approved for the participant if the 
475.6   current or past violence affects the ability of the person to 
475.7   participate with regular employment service activities or denial 
475.8   of an alternative employment plan would interfere with the 
475.9   safety of the participant or children. 
475.10     Sec. 32.  Minnesota Statutes 2000, section 256J.52, 
475.11  subdivision 3, is amended to read: 
475.12     Subd. 3.  [JOB SEARCH; JOB SEARCH SUPPORT PLAN.] (a) If, 
475.13  after the initial assessment, the job counselor determines that 
475.14  the participant possesses sufficient skills that the participant 
475.15  is likely to succeed in obtaining suitable employment, the 
475.16  participant must conduct job search for a period of up to eight 
475.17  weeks, for at least 30 hours per week.  The participant must 
475.18  accept any offer of suitable employment.  Upon agreement by the 
475.19  job counselor and the participant, a job search support plan may 
475.20  limit a job search to jobs that are consistent with the 
475.21  participant's employment goal.  The job counselor and 
475.22  participant must develop a job search support plan which 
475.23  specifies, at a minimum:  a job goal which realistically 
475.24  reflects the individual's skills, abilities, and work experience 
475.25  and meets the definition of suitable employment, and for which 
475.26  there are job openings in the geographic area of the 
475.27  participant's job search or an area to which the participant is 
475.28  willing to relocate; whether the job search is to be supervised 
475.29  or unsupervised; support services that will be provided while 
475.30  the participant conducts job search activities; the courses 
475.31  necessary to obtain certification or licensure, if applicable, 
475.32  and after obtaining the license or certificate, the client must 
475.33  comply with subdivision 5; and how frequently the participant 
475.34  must report to the job counselor on the status of the 
475.35  participant's job search activities.  The job goal specified in 
475.36  the job search support plan must be intended to enable the 
476.1   participant to progress toward employment that provides wages 
476.2   sufficient to allow the participant to transition off of MFIP.  
476.3   The job search support plan must also specify that the 
476.4   participant fulfill no more than half of the required hours of 
476.5   job search through attending adult basic education or English as 
476.6   a second language classes, if one or both of those activities 
476.7   are approved by the job counselor. 
476.8      (b) During the eight-week job search period, either the job 
476.9   counselor or the participant may request a review of the 
476.10  participant's job search plan and progress towards obtaining 
476.11  suitable employment participant's job goal under paragraph (a).  
476.12  If a review is requested by the participant, the job counselor 
476.13  must concur that the review is appropriate for the participant 
476.14  at that time.  If a review is conducted, the job counselor may 
476.15  make a determination to conduct a secondary assessment prior to 
476.16  the conclusion of the job search. 
476.17     (c) Failure to conduct the required job search, to accept 
476.18  any offer of suitable employment consistent with the 
476.19  participant's job goal under paragraph (a), to develop or comply 
476.20  with a job search support plan, or voluntarily quitting suitable 
476.21  employment without good cause results in the imposition of a 
476.22  sanction under section 256J.46.  If at the end of eight weeks 
476.23  the participant has not obtained suitable employment, the job 
476.24  counselor must conduct a secondary assessment of the participant 
476.25  under subdivision 3 4. 
476.26     (d) In order for an English as a second language (ESL) 
476.27  class to be an approved work activity, a participant must be at 
476.28  or below a spoken language proficiency level of SPL5 or its 
476.29  equivalent, as measured by a nationally recognized test.  A 
476.30  participant may not be approved for more than a total of 24 
476.31  months of ESL activities while participating in the employment 
476.32  and training services component of MFIP.  In approving ESL as a 
476.33  work activity, the job counselor must give preference to 
476.34  enrollment in an intensive ESL program, if one is available, 
476.35  over a regular ESL program.  If an intensive ESL program is 
476.36  approved, the restriction in paragraph (a) that no more than 
477.1   half of the required hours of job search is fulfilled through 
477.2   attending ESL classes does not apply. 
477.3      Sec. 33.  Minnesota Statutes 2000, section 256J.52, 
477.4   subdivision 6, is amended to read: 
477.5      Subd. 6.  [SAFETY ALTERNATIVE EMPLOYMENT PLAN AND FAMILY 
477.6   VIOLENCE WAIVER PROVISIONS.] Notwithstanding subdivisions 1 to 
477.7   5, a participant who is a victim of domestic violence and who 
477.8   agrees to develop or has developed a safety plan meeting the 
477.9   definition under section 256J.49, subdivision 11, is deferred 
477.10  from the requirements of this section, sections 256J.54, and 
477.11  256J.55 for a period of three months from the date the safety 
477.12  plan is approved.  A participant deferred under this subdivision 
477.13  must submit a safety plan status report to the county agency on 
477.14  a quarterly basis.  Based on a review of the status report, the 
477.15  county agency may approve or renew the participant's deferral 
477.16  each quarter, provided the personal safety of the participant is 
477.17  still at risk and the participant is complying with the plan.  A 
477.18  participant who is deferred under this subdivision may be 
477.19  deferred for a total of 12 months under a safety plan, provided 
477.20  the individual is complying with the terms of the plan.  
477.21  Participants who have a safety plan under section 256J.49, 
477.22  subdivision 11, prior to October 1, 2001, will have that plan 
477.23  converted to an alternative employment plan upon their plan 
477.24  renewal date.  An alternative employment plan must be reviewed 
477.25  at the end of the first six months to determine if the 
477.26  activities contained in the alternative employment plan are 
477.27  still appropriate.  It is the responsibility of the county or a 
477.28  job counselor to contact the participant and notify them that 
477.29  their plan is up for review, and document whether the 
477.30  participant wishes to renew the plan.  If the participant does 
477.31  not wish to renew the plan, or if the participant fails to 
477.32  respond after reasonable efforts to contact the participant are 
477.33  made by the county or a job counselor, the participant must 
477.34  participate in regular employment services activities.  If the 
477.35  participant requests renewal of the plan or if there is a 
477.36  dispute over whether the plan is still appropriate, the 
478.1   participant must receive the assistance of a person trained in 
478.2   domestic violence.  If the person trained in domestic violence 
478.3   recommends that the activities are still appropriate, the county 
478.4   or a job counselor must renew the alternative employment plan or 
478.5   provide written reasons why the plan is not approved and 
478.6   document how denial of the plan renewal does not interfere with 
478.7   the safety of the participant or children.  If the person 
478.8   trained in domestic violence recommends that the activities are 
478.9   no longer appropriate, the plan must be revised with the 
478.10  assistance of a person trained in domestic violence.  The county 
478.11  or a job counselor must approve the revised plan or provide 
478.12  written reasons why the plan is not approved and document how 
478.13  denial of the plan renewal does not interfere with the safety of 
478.14  the participant or children.  After the first six months reviews 
478.15  may take place quarterly.  During the time a participant is 
478.16  cooperating with the development or revision of an alternative 
478.17  employment plan, the participant is not subject to a sanction 
478.18  for noncompliance with regular employment services activities.  
478.19     Sec. 34.  Minnesota Statutes 2000, section 256J.53, 
478.20  subdivision 1, is amended to read: 
478.21     Subdivision 1.  [LENGTH OF PROGRAM.] In order for a 
478.22  post-secondary education or training program to be approved work 
478.23  activity as defined in section 256J.49, subdivision 13, clause 
478.24  (18), it must be a program lasting 12 24 months or less, and the 
478.25  participant must meet the requirements of subdivisions 2 and 3.  
478.26  A program lasting up to 24 months may be approved on an 
478.27  exception basis if the conditions specified in subdivisions 2 to 
478.28  4 are met.  A participant may not be approved for more than a 
478.29  total of 24 months of post-secondary education or training. 
478.30     Sec. 35.  Minnesota Statutes 2000, section 256J.53, 
478.31  subdivision 2, is amended to read: 
478.32     Subd. 2.  [DOCUMENTATION SUPPORTING PROGRAM.] (a) In order 
478.33  for a post-secondary education or training program to be an 
478.34  approved activity in a participant's employment plan, the 
478.35  participant or the employment and training service provider must 
478.36  provide documentation that: 
479.1      (1) the participant's employment plan identifies specific 
479.2   goals that can only be met with the additional education or 
479.3   training; 
479.4      (2) there are suitable employment opportunities that 
479.5   require the specific education or training in the area in which 
479.6   the participant resides or is willing to reside; 
479.7      (3) the education or training will result in significantly 
479.8   higher wages for the participant than the participant could earn 
479.9   without the education or training; 
479.10     (4) the participant can meet the requirements for admission 
479.11  into the program; and 
479.12     (5) there is a reasonable expectation that the participant 
479.13  will complete the training program based on such factors as the 
479.14  participant's MFIP-S assessment, previous education, training, 
479.15  and work history; current motivation; and changes in previous 
479.16  circumstances. 
479.17     (b) The job counselor shall approve an education or 
479.18  training program that meets the requirements under paragraph (a).
479.19     Sec. 36.  Minnesota Statutes 2000, section 256J.53, 
479.20  subdivision 3, is amended to read: 
479.21     Subd. 3.  [SATISFACTORY PROGRESS REQUIRED.] In order for a 
479.22  post-secondary education or training program to be an approved 
479.23  activity in a participant's employment plan participant to 
479.24  continue with post-secondary education or training, the 
479.25  participant must maintain satisfactory progress in the program.  
479.26  "Satisfactory progress" in an education or training program 
479.27  means (1) the participant remains in good standing while the 
479.28  participant is enrolled in the program, as defined by the 
479.29  education or training institution, or (2) the participant makes 
479.30  satisfactory progress as the term is defined in the 
479.31  participant's employment plan. 
479.32     Sec. 37.  [256J.555] [PARTICIPANT PERFORMANCE BONUSES.] 
479.33     If a county elects to provide participant performance 
479.34  bonuses under section 256J.625, subdivision 4, paragraph (d), a 
479.35  participant enrolled in employment and training services is 
479.36  eligible to receive the cash bonuses if the participant has been 
480.1   in compliance with all the requirements of the participant's job 
480.2   search support plan or employment plan for the previous six 
480.3   months.  A participant may receive each bonus only once.  Income 
480.4   received from the cash bonuses is excluded in determining MFIP 
480.5   eligibility and benefits.  Bonuses are available for the 
480.6   completion of the following goals: 
480.7      (1) for continuous employment of at least 20 hours per week 
480.8   for six months, the bonus is $200.  The caregiver is eligible to 
480.9   receive this bonus if the participant remains on MFIP while 
480.10  employed or if the participant has exited MFIP as the result of 
480.11  employment; 
480.12     (2) for continuous employment of at least 20 hours per week 
480.13  for 12 months, the bonus is $300.  The caregiver is eligible to 
480.14  receive this bonus if the participant remains on MFIP while 
480.15  employed or if the participant has exited MFIP as the result of 
480.16  employment; 
480.17     (3) for employment that leads to earnings sufficient for a 
480.18  caregiver to transition off of MFIP and stay off for six months, 
480.19  the bonus is $300; 
480.20     (4) for completion of an English as a second language 
480.21  program, the bonus is $300; 
480.22     (5) for completion of a high school diploma or GED, the 
480.23  bonus is $300; and 
480.24     (6) for completion of a job skills training program from a 
480.25  certified provider, the bonus is $300. 
480.26     Sec. 38.  Minnesota Statutes 2000, section 256J.56, is 
480.27  amended to read: 
480.28     256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 
480.29  EXEMPTIONS.] 
480.30     (a) An MFIP caregiver is exempt from the requirements of 
480.31  sections 256J.52 to 256J.55 if the caregiver belongs to any of 
480.32  the following groups: 
480.33     (1) individuals who are age 60 or older; 
480.34     (2) individuals who are suffering from a professionally 
480.35  certified permanent or temporary illness, injury, or incapacity 
480.36  which is expected to continue for more than 30 days and which 
481.1   prevents the person from obtaining or retaining employment.  
481.2   Persons in this category with a temporary illness, injury, or 
481.3   incapacity must be reevaluated at least quarterly; 
481.4      (3) caregivers whose presence in the home is required as a 
481.5   caregiver because of the a professionally certified illness or 
481.6   incapacity of another member in the assistance unit, a relative 
481.7   in the household, or a foster child in the household; 
481.8      (4) women who are pregnant, if the pregnancy has resulted 
481.9   in a professionally certified incapacity that prevents the woman 
481.10  from obtaining or retaining employment; 
481.11     (5) caregivers of a child under the age of one year who 
481.12  personally provide full-time care for the child.  This exemption 
481.13  may be used for only 12 months in a lifetime.  In two-parent 
481.14  households, only one parent or other relative may qualify for 
481.15  this exemption; 
481.16     (6) individuals who are single parents, or one parent in a 
481.17  two-parent family, employed at least 35 hours per week; 
481.18     (7) individuals experiencing a personal or family crisis 
481.19  that makes them incapable of participating in the program, as 
481.20  determined by the county agency.  If the participant does not 
481.21  agree with the county agency's determination, the participant 
481.22  may seek professional certification, as defined in section 
481.23  256J.08, that the participant is incapable of participating in 
481.24  the program.  Persons in this exemption category must be 
481.25  reevaluated every 60 days.  A personal or family crisis related 
481.26  to family violence, as determined by the county or a job 
481.27  counselor with the assistance of a person trained in domestic 
481.28  violence, should not result in an exemption, but should be 
481.29  addressed through the development or revision of an alternative 
481.30  employment plan under section 256J.52, subdivision 6; 
481.31     (8) (7) second parents in two-parent families employed for 
481.32  20 or more hours per week, provided the first parent is employed 
481.33  at least 35 hours per week; or 
481.34     (9) (8) caregivers with a child or an adult in the 
481.35  household who meets the disability or medical criteria for home 
481.36  care services under section 256B.0627, subdivision 1, paragraph 
482.1   (c), or a home and community-based waiver services program under 
482.2   chapter 256B, or meets the criteria for severe emotional 
482.3   disturbance under section 245.4871, subdivision 6, or for 
482.4   serious and persistent mental illness under section 245.462, 
482.5   subdivision 20, paragraph (c).  Caregivers in this exemption 
482.6   category are presumed to be prevented from obtaining or 
482.7   retaining employment. 
482.8      (b) A caregiver who is exempt under clause (5) must enroll 
482.9   in and attend an early childhood and family education class, a 
482.10  parenting class, or some similar activity, if available, during 
482.11  the period of time the caregiver is exempt under this section.  
482.12  Notwithstanding section 256J.46, failure to attend the required 
482.13  activity shall not result in the imposition of a sanction. 
482.14     (b) (c) The county agency must provide employment and 
482.15  training services to MFIP caregivers who are exempt under this 
482.16  section, but who volunteer to participate.  Exempt volunteers 
482.17  may request approval for any work activity under section 
482.18  256J.49, subdivision 13.  The hourly participation requirements 
482.19  for nonexempt caregivers under section 256J.50, subdivision 5, 
482.20  do not apply to exempt caregivers who volunteer to participate. 
482.21     Sec. 39.  Minnesota Statutes 2000, section 256J.62, 
482.22  subdivision 2a, is amended to read: 
482.23     Subd. 2a.  [CASELOAD-BASED FUNDS ALLOCATION.] Effective for 
482.24  state fiscal year 2000, and for all subsequent years, money 
482.25  shall be allocated to counties and eligible tribal providers 
482.26  based on their average number of MFIP cases as a proportion of 
482.27  the statewide total number of MFIP cases:  
482.28     (1) the average number of cases must be based upon counts 
482.29  of MFIP or tribal TANF cases as of March 31, June 30, September 
482.30  30, and December 31 of the previous calendar year, less the 
482.31  number of child only cases and cases where all the caregivers 
482.32  are age 60 or over.  Two-parent cases, with the exception of 
482.33  those with a caregiver age 60 or over, will be multiplied by a 
482.34  factor of two; 
482.35     (2) the MFIP or tribal TANF case count for each eligible 
482.36  tribal provider shall be based upon the number of MFIP or tribal 
483.1   TANF cases who are enrolled in, or are eligible for enrollment 
483.2   in the tribe; and the case must be an active MFIP case; and the 
483.3   case members must reside within the tribal program's service 
483.4   delivery area; and 
483.5      (3) MFIP or tribal TANF cases counted for determining 
483.6   allocations to tribal providers shall be removed from the case 
483.7   counts of the respective counties where they reside to prevent 
483.8   duplicate counts;. 
483.9      (4) prior to allocating funds to counties and tribal 
483.10  providers, $1,000,000 shall be set aside to allow the 
483.11  commissioner to use these set-aside funds to provide funding to 
483.12  county or tribal providers who experience an unforeseen influx 
483.13  of participants or other emergent situations beyond their 
483.14  control; and 
483.15     (5) the commissioner shall use a portion of the funds in 
483.16  clause (4) to offset a reduction in funds allocated to any 
483.17  county between state fiscal year 1999 and state fiscal year 2000 
483.18  that results from the adjustment in clause (3).  The funding 
483.19  provided under this clause must reduce by half the reduction for 
483.20  state fiscal year 2000 that any county would otherwise 
483.21  experience in the absence of this clause. 
483.22  Any funds specified in this clause that remain unspent by March 
483.23  31 of each year shall be reallocated out to county and tribal 
483.24  providers using the funding formula detailed in clauses (1) to 
483.25  (5). 
483.26     Sec. 40.  Minnesota Statutes 2000, section 256J.62, 
483.27  subdivision 9, is amended to read: 
483.28     Subd. 9.  [CONTINUATION OF CERTAIN SERVICES.] At the 
483.29  request of the caregiver, the county may continue to provide 
483.30  case management, counseling or other support services to a 
483.31  participant following the participant's achievement of the 
483.32  employment goal, for up to 12 months following termination of 
483.33  the participant's eligibility for MFIP, as long as the 
483.34  participant's household income is below 200 percent of the 
483.35  federal poverty guidelines. 
483.36     A county may expend funds for a specific employment and 
484.1   training service for the duration of that service to a 
484.2   participant if the funds are obligated or expended prior to the 
484.3   participant losing MFIP eligibility. 
484.4      Sec. 41.  Minnesota Statutes 2000, section 256J.625, is 
484.5   amended to read: 
484.6      256J.625 [LOCAL INTERVENTION GRANTS FOR SELF-SUFFICIENCY.] 
484.7      Subdivision 1.  [ESTABLISHMENT; GUARANTEED MINIMUM 
484.8   ALLOCATION.] (a) The commissioner shall make grants under this 
484.9   subdivision to assist county and tribal TANF programs to more 
484.10  effectively serve hard-to-employ MFIP participants.  Funds 
484.11  appropriated for local intervention grants for self-sufficiency 
484.12  must be allocated first in amounts equal to the guaranteed 
484.13  minimum in paragraph (b) subdivision 1b, and second according to 
484.14  the provisions of subdivision 2.  Any remaining funds must be 
484.15  allocated according to the formula in subdivision 3. 
484.16     Subd. 1a.  [LOCAL SERVICE UNIT PLAN REQUIRED.] Counties or 
484.17  tribes must have an approved local service unit plan under 
484.18  section 256J.50, subdivision 7, paragraph (b), in order to 
484.19  receive and expend funds under subdivisions 2 and 3.  If a 
484.20  county or tribe does not submit a local service unit plan under 
484.21  section 256J.50, subdivision 7, paragraph (b), or if the plan is 
484.22  not approved at the full amount allocated to the county or tribe 
484.23  under subdivision 3, the remaining funds under subdivision 3 may 
484.24  be used by the commissioner to contract with other public, 
484.25  private, or nonprofit entities in the county or region to 
484.26  deliver services that meet the purposes of subdivision 4. 
484.27     (b) Subd. 1b.  [GUARANTEED MINIMUM.] Each county or tribal 
484.28  program shall receive a guaranteed minimum annual allocation of 
484.29  $25,000.  The minimum annual allocation for each county or tribe 
484.30  that has fewer than 25 long-term dependent adults on MFIP based 
484.31  on the formula in subdivision 3 is $5,000, and the minimum 
484.32  annual allocation for each county or tribe that has 25 or more 
484.33  long-term dependent adults on MFIP based on the formula in 
484.34  subdivision 3 is $10,000. 
484.35     Subd. 2.  [SET-ASIDE FUNDS.] (a) Of the funds appropriated 
484.36  for grants under this section, after the allocation in 
485.1   subdivision 1, paragraph (b) 1b, is made, 20 percent of the 
485.2   remaining funds $3,576,000 each year shall be retained by the 
485.3   commissioner and awarded to counties or tribes whose approved 
485.4   plans demonstrate additional need based on their identification 
485.5   of hard-to-employ families and working participants in need of 
485.6   job retention and wage advancement services, strong anticipated 
485.7   outcomes for families and an effective plan for monitoring 
485.8   performance, or, use of a multicounty, multi-entity or regional 
485.9   approach to serve hard-to-employ families and working 
485.10  participants in need of job retention and wage advancement 
485.11  services who are identified as a target population to be served 
485.12  in the plan submitted under section 256J.50, subdivision 7, 
485.13  paragraph (b).  In distributing funds under this paragraph, the 
485.14  commissioner must achieve a geographic balance.  The 
485.15  commissioner may award funds under this paragraph to other 
485.16  public, private, or nonprofit entities to deliver services in a 
485.17  county or region where the entity or entities submit a plan that 
485.18  demonstrates a strong capability to fulfill the terms of the 
485.19  plan and where the plan shows an innovative or multi-entity 
485.20  approach. 
485.21     (b) For fiscal year 2001 only, of the funds available under 
485.22  this subdivision the commissioner must allocate funding in the 
485.23  amounts specified in article 1, section 2, subdivision 7, for an 
485.24  intensive intervention transitional employment training project 
485.25  and for nontraditional career assistance and training programs.  
485.26  These allocations must occur before any set-aside funds are 
485.27  allocated under paragraph (a). 
485.28     Subd. 2a.  [ALTERNATIVE DISTRIBUTION FORMULA.] (a) By 
485.29  January 31, 2001, the commissioner of human services must 
485.30  develop and present to the appropriate legislative committees a 
485.31  distribution formula that is an alternative to the formula 
485.32  allocation specified in subdivision 3.  The proposed 
485.33  distribution formula must target hard-to-employ MFIP 
485.34  participants, and it must include an incentive-based component 
485.35  that is designed to encourage county and tribal programs to 
485.36  effectively serve hard-to-employ participants.  The 
486.1   commissioner's proposal must also be designed to be implemented 
486.2   for fiscal years 2002 and 2003 in place of the formula 
486.3   allocation specified in subdivision 3. 
486.4      (b) Notwithstanding the provisions of subdivision 2, 
486.5   paragraph (a), if the commissioner does not develop a proposed 
486.6   formula as required in paragraph (a), the set-aside funds for 
486.7   fiscal years 2002 and 2003 that the commissioner would otherwise 
486.8   distribute under subdivision 2, paragraph (a), must not be 
486.9   distributed under that provision.  Funds available under 
486.10  subdivision 2, paragraph (a), must instead be allocated in equal 
486.11  amounts to each county and tribal program in fiscal years 2002 
486.12  and 2003. 
486.13     Subd. 3.  [FORMULA ALLOCATION.] Funds remaining after the 
486.14  allocations in subdivisions 1 1b and 2 must be allocated as 
486.15  follows: to counties and tribes based on the average proportion 
486.16  of the MFIP caseload that has received MFIP assistance for 24 of 
486.17  the last 36 months, as sampled on March 31, June 30, September 
486.18  30, and December 31 of the previous calendar year, less the 
486.19  number of child-only cases and cases where all the caregivers 
486.20  are age 60 or over.  Two-parent cases, with the exception of 
486.21  those with a caregiver age 60 or over, will be multiplied by a 
486.22  factor of two. 
486.23     (1) 85 percent shall be allocated in proportion to each 
486.24  county's and tribal TANF program's one-parent MFIP cases that 
486.25  have received MFIP assistance for at least 25 months, as sampled 
486.26  on December 31 of the previous calendar year, excluding cases 
486.27  where all caregivers are age 60 or over. 
486.28     (2) 15 percent shall be allocated to each county's and 
486.29  tribal TANF program's two-parent MFIP cases that have received 
486.30  MFIP assistance for at least 25 months, as sampled on December 
486.31  31 of the previous calendar year, excluding cases where all 
486.32  caregivers are age 60 or over. 
486.33     Subd. 4.  [USE OF FUNDS.] (a) A county or tribal program, 
486.34  or other public, private, or nonprofit entity in the county or 
486.35  region may use funds allocated under this subdivision section to 
486.36  provide services to MFIP participants who are hard-to-employ and 
487.1   their families.  Services provided must be intended to reduce 
487.2   the number of MFIP participants who are expected to reach the 
487.3   60-month time limit under section 256J.42.  Counties, tribes, 
487.4   and other entities receiving funds under subdivision 2 or 3 must 
487.5   submit semiannual progress reports to the commissioner which 
487.6   detail program outcomes. 
487.7      (b) Funds allocated under this section may not be used to 
487.8   provide benefits that are defined as "assistance" in Code of 
487.9   Federal Regulations, title 45, section 260.31, to an assistance 
487.10  unit that is only receiving the food portion of MFIP benefits. 
487.11     (c) A county may use funds allocated under this section for 
487.12  that part of the match for federal access to jobs transportation 
487.13  funds that is TANF-eligible.  A county may also use funds 
487.14  allocated under this section to enhance transportation choices 
487.15  for eligible recipients up to 150 percent of the federal poverty 
487.16  guidelines. 
487.17     (d) A county may use funds allocated under this section to 
487.18  provide any or all of the participant performance bonuses to 
487.19  MFIP participants as defined in section 256J.555.  The dollar 
487.20  amount of the bonus or bonuses provided must not exceed the 
487.21  amounts in section 256J.555. 
487.22     Subd. 5.  [SUNSET.] The grant program under this section 
487.23  sunsets on June 30, 2003. 
487.24     Sec. 42.  Minnesota Statutes 2000, section 256J.645, is 
487.25  amended to read: 
487.26     256J.645 [INDIAN TRIBE MFIP-S MFIP EMPLOYMENT AND TRAINING 
487.27  SERVICES.] 
487.28     Subdivision 1.  [AUTHORIZATION TO ENTER INTO AGREEMENTS.] 
487.29  Effective July 1, 1997, the commissioner may enter into 
487.30  agreements with federally recognized Indian tribes with a 
487.31  reservation in the state to provide MFIP-S MFIP employment and 
487.32  training services to members of the Indian tribe and to other 
487.33  caregivers who are a part of the tribal member's MFIP-S MFIP 
487.34  assistance unit.  For purposes of this section, "Indian tribe" 
487.35  means a tribe, band, nation, or other federally recognized group 
487.36  or community of Indians.  The commissioner may also enter into 
488.1   an agreement with a consortium of Indian tribes providing the 
488.2   governing body of each Indian tribe in the consortium complies 
488.3   with the provisions of this section. 
488.4      Subd. 2.  [TRIBAL REQUIREMENTS.] The Indian tribe must: 
488.5      (1) agree to fulfill the responsibilities provided under 
488.6   the employment and training services component of MFIP-S MFIP 
488.7   regarding operation of MFIP-S MFIP employment and training 
488.8   services, as designated by the commissioner; 
488.9      (2) operate its employment and training services program 
488.10  within a geographic service area not to exceed the counties 
488.11  within which a border of the reservation falls; 
488.12     (3) operate its program in conformity with section 13.46 
488.13  and any applicable federal regulations in the use of data about 
488.14  MFIP-S MFIP recipients; 
488.15     (4) coordinate operation of its program with the county 
488.16  agency, Job Training Partnership Workforce Investment Act 
488.17  programs, and other support services or employment-related 
488.18  programs in the counties in which the tribal unit's program 
488.19  operates; 
488.20     (5) provide financial and program participant activity 
488.21  recordkeeping and reporting in the manner and using the forms 
488.22  and procedures specified by the commissioner and permit 
488.23  inspection of its program and records by representatives of the 
488.24  state; and 
488.25     (6) have the Indian tribe's employment and training service 
488.26  provider certified by the commissioner of economic security, or 
488.27  approved by the county. 
488.28     Subd. 3.  [FUNDING.] If the commissioner and an Indian 
488.29  tribe are parties to an agreement under this subdivision, the 
488.30  agreement may shall annually provide to the Indian tribe the 
488.31  funding amount in clause (1) or (2): allocated in section 
488.32  256J.62, subdivisions 1 and 2a. 
488.33     (1) if the Indian tribe operated a tribal STRIDE program 
488.34  during state fiscal year 1997, the amount to be provided is the 
488.35  amount the Indian tribe received from the state for operation of 
488.36  its tribal STRIDE program in state fiscal year 1997, except that 
489.1   the amount provided for a fiscal year may increase or decrease 
489.2   in the same proportion that the total amount of state and 
489.3   federal funds available for MFIP-S employment and training 
489.4   services increased or decreased that fiscal year; or 
489.5      (2) if the Indian tribe did not operate a tribal STRIDE 
489.6   program during state fiscal year 1997, the commissioner may 
489.7   provide to the Indian tribe for the first year of operations the 
489.8   amount determined by multiplying the state allocation for MFIP-S 
489.9   employment and training services to each county agency in the 
489.10  Indian tribe's service delivery area by the percentage of MFIP-S 
489.11  recipients in that county who were members of the Indian tribe 
489.12  during the previous state fiscal year.  The resulting amount 
489.13  shall also be the amount that the commissioner may provide to 
489.14  the Indian tribe annually thereafter through an agreement under 
489.15  this subdivision, except that the amount provided for a fiscal 
489.16  year may increase or decrease in the same proportion that the 
489.17  total amount of state and federal funds available for MFIP-S 
489.18  employment and training services increased or decreased that 
489.19  fiscal year. 
489.20     Subd. 4.  [COUNTY AGENCY REQUIREMENT.] Indian tribal 
489.21  members receiving MFIP-S MFIP benefits and residing in the 
489.22  service area of an Indian tribe operating employment and 
489.23  training services under an agreement with the commissioner must 
489.24  be referred by county agencies in the service area to the Indian 
489.25  tribe for employment and training services. 
489.26     Sec. 43.  Minnesota Statutes 2000, section 256K.03, 
489.27  subdivision 5, is amended to read: 
489.28     Subd. 5.  [EXEMPTION CATEGORIES.] (a) The applicant will be 
489.29  exempt from the job search requirements and development of a job 
489.30  search plan and an employability development plan under 
489.31  subdivisions 3, 4, and 8 if the applicant belongs to any of the 
489.32  following groups: 
489.33     (1) individuals who are age 60 or older; 
489.34     (2) individuals who are suffering from a professionally 
489.35  certified permanent or temporary illness, injury, or incapacity 
489.36  which is expected to continue for more than 30 days and which 
490.1   prevents the person from obtaining or retaining employment.  
490.2   Persons in this category with a temporary illness, injury, or 
490.3   incapacity must be reevaluated at least quarterly; 
490.4      (3) caregivers whose presence in the home is needed as a 
490.5   caregiver because of the a professionally certified illness or 
490.6   incapacity of another member in the assistance unit, a relative 
490.7   in the household, or a foster child in the household; 
490.8      (4) women who are pregnant, if the pregnancy has resulted 
490.9   in a professionally certified incapacity that prevents the woman 
490.10  from obtaining and retaining employment; 
490.11     (5) caregivers of a child under the age of one year who 
490.12  personally provide full-time care for the child.  This exemption 
490.13  may be used for only 12 months in a lifetime.  In two-parent 
490.14  households, only one parent or other relative may qualify for 
490.15  this exemption; 
490.16     (6) individuals who are single parents or one parent in a 
490.17  two-parent family employed at least 35 hours per week; 
490.18     (7) individuals experiencing a personal or family crisis 
490.19  that makes them incapable of participating in the program, as 
490.20  determined by the county agency.  If the participant does not 
490.21  agree with the county agency's determination, the participant 
490.22  may seek professional certification, as defined in section 
490.23  256J.08, that the participant is incapable of participating in 
490.24  the program.  Persons in this exemption category must be 
490.25  reevaluated every 60 days; or 
490.26     (8) (7) second parents in two-parent families employed for 
490.27  20 or more hours per week provided the first parent is employed 
490.28  at least 35 hours per week. 
490.29     (b) A caregiver who is exempt under clause (5) must enroll 
490.30  in and attend an early childhood and family education class, a 
490.31  parenting class, or some similar activity, if available, during 
490.32  the period of time the caregiver is exempt under this section.  
490.33  Notwithstanding section 256J.46, failure to attend the required 
490.34  activity shall not result in the imposition of a sanction. 
490.35     Sec. 44.  [DOMESTIC VIOLENCE TRAINING FOR COUNTY AGENCIES.] 
490.36     During fiscal year 2002, the commissioner of human services 
491.1   will provide training for county agency staff to receive 
491.2   specialized domestic violence training in order to carry out the 
491.3   responsibilities in Minnesota Statutes, sections 256J.46, 
491.4   subdivision 1a; 256J.49, subdivision 1a; 256J.52, subdivision 6; 
491.5   and 256J.56, subdivision 6.  This training must be similar to 
491.6   the training provided to individuals who work for an 
491.7   organization designated by the Minnesota center for crime 
491.8   victims services as providing services to victims of domestic 
491.9   violence. 
491.10     Sec. 45.  [SANCTION REPORT.] 
491.11     The request for the report under this section must be 
491.12  referred to the legislative audit commission for consideration.  
491.13  If approved, the legislative auditor, with input from previous 
491.14  and current MFIP participants, shall investigate inconsistent or 
491.15  illegal sanctions that were imposed on MFIP participants from 
491.16  January of 1998 to the present.  The legislative auditor shall 
491.17  report the nature of erroneous sanction activity, the scope or 
491.18  extent of the errors or problems among sanctioned cases, and 
491.19  provide recommendations or corrective actions to reconcile past 
491.20  illegal or inconsistent sanctions, and recommend solutions that 
491.21  will ensure that MFIP sanctions are imposed fairly and 
491.22  consistently in the future.  The report to the members of the 
491.23  senate and house committees having jurisdiction over MFIP issues 
491.24  is due by January 15, 2002. 
491.25     Sec. 46.  [REVISOR INSTRUCTION.] 
491.26     In the next edition of Minnesota Statutes and Minnesota 
491.27  Rules, the revisor shall change all references to Minnesota 
491.28  Family Investment Program-Statewide (MFIP-S) to Minnesota Family 
491.29  Investment Program (MFIP).  
491.30     Sec. 47.  [REPEALER.] 
491.31     (a) Minnesota Statutes 2000, sections 256J.08, subdivision 
491.32  50a; 256J.12, subdivision 3; 256J.43; and 256J.53, subdivision 
491.33  4, are repealed. 
491.34     (b) Minnesota Statutes 2000, section 256J.49, subdivision 
491.35  11, is repealed October 1, 2001. 
491.36     (c) Minnesota Statutes 2000, section 256D.066, is repealed. 
492.1      (d) Minnesota Statutes 2000, sections 256.01, subdivision 
492.2   18; 256J.32, subdivision 7a; and Laws 2000, chapter 488, article 
492.3   10, section 30, are repealed effective July 1, 2001. 
492.4      (e) Laws 1997, chapter 203, article 9, section 21; Laws 
492.5   1998, chapter 407, article 6, section 111; and Laws 2000, 
492.6   chapter 488, article 10, section 28, are repealed. 
492.7                              ARTICLE 11 
492.8                    CHILD WELFARE AND FOSTER CARE 
492.9      Section 1.  Minnesota Statutes 2000, section 13.461, 
492.10  subdivision 17, is amended to read: 
492.11     Subd. 17.  [VULNERABLE ADULT MALTREATMENT REVIEW PANEL 
492.12  PANELS.] Data of the vulnerable adult maltreatment review 
492.13  panel or the child maltreatment review panel are classified 
492.14  under section 256.021 or section 3. 
492.15     Sec. 2.  Minnesota Statutes 2000, section 245.814, 
492.16  subdivision 1, is amended to read: 
492.17     Subdivision 1.  [INSURANCE FOR FOSTER HOME PROVIDERS.] The 
492.18  commissioner of human services shall within the appropriation 
492.19  provided purchase and provide insurance to individuals licensed 
492.20  as foster home providers to cover their liability for: 
492.21     (1) injuries or property damage caused or sustained by 
492.22  persons in foster care in their home; and 
492.23     (2) actions arising out of alienation of affections 
492.24  sustained by the birth parents of a foster child or birth 
492.25  parents or children of a foster adult.  
492.26     For purposes of this subdivision, insurance for homes 
492.27  licensed to provide adult foster care shall be limited to family 
492.28  adult foster care homes as defined in section 144D.01, 
492.29  subdivision 7. 
492.30     Sec. 3.  [256.022] [CHILD MALTREATMENT REVIEW PANEL.] 
492.31     Subdivision 1.  [CREATION.] The commissioner of human 
492.32  services shall establish a review panel for purposes of 
492.33  reviewing investigating agency determinations regarding 
492.34  maltreatment of a child in a facility in response to requests 
492.35  received under section 626.556, subdivision 10i, paragraph (b).  
492.36  The review panel consists of the commissioners of health; human 
493.1   services; children, families, and learning; corrections; the 
493.2   ombudsman for crime victims; and the ombudsman for mental health 
493.3   and mental retardation; or their designees.  
493.4      Subd. 2.  [REVIEW PROCEDURE.] (a) The panel shall hold 
493.5   quarterly meetings for purposes of conducting reviews under this 
493.6   section.  If an interested person acting on behalf of a child 
493.7   requests a review under this section, the panel shall review the 
493.8   request at its next quarterly meeting.  If the next quarterly 
493.9   meeting is within ten days of the panel's receipt of the request 
493.10  for review, the review may be delayed until the next subsequent 
493.11  meeting.  The panel shall review the request and the final 
493.12  determination regarding maltreatment made by the investigating 
493.13  agency and may review any other data on the investigation 
493.14  maintained by the agency that are pertinent and necessary to its 
493.15  review of the determination.  If more than one person requests a 
493.16  review under this section with respect to the same 
493.17  determination, the review panel shall combine the requests into 
493.18  one review.  Upon receipt of a request for a review, the panel 
493.19  shall notify the alleged perpetrator of maltreatment that a 
493.20  review has been requested and provide an approximate timeline 
493.21  for conducting the review.  
493.22     (b) Within 30 days of the review under this section, the 
493.23  panel shall notify the investigating agency and the interested 
493.24  person who requested the review as to whether the panel agrees 
493.25  with the determination or whether the investigating agency must 
493.26  reconsider the determination.  If the panel determines that the 
493.27  agency must reconsider the determination, the panel must make 
493.28  specific investigative recommendations to the agency.  Within 30 
493.29  days the investigating agency shall conduct a review and report 
493.30  back to the panel with its reconsidered determination and the 
493.31  specific rationale for its determination. 
493.32     Subd. 3.  [REPORT.] By January 15 of each year, the panel 
493.33  shall submit a report to the committees of the legislature with 
493.34  jurisdiction over section 626.556 regarding the number of 
493.35  requests for review it receives under this section, the number 
493.36  of cases where the panel requires the investigating agency to 
494.1   reconsider its final determination, the number of cases where 
494.2   the final determination is changed, and any recommendations to 
494.3   improve the review or investigative process.  
494.4      Subd. 4.  [DATA.] Data of the review panel created as part 
494.5   of a review under this section are private data on individuals 
494.6   as defined in section 13.02. 
494.7      Sec. 4.  Minnesota Statutes 2000, section 257.0725, is 
494.8   amended to read: 
494.9      257.0725 [ANNUAL REPORT.] 
494.10     The commissioner of human services shall publish an annual 
494.11  report on child maltreatment and on children in out-of-home 
494.12  placement.  The commissioner shall confer with counties, child 
494.13  welfare organizations, child advocacy organizations, the courts, 
494.14  and other groups on how to improve the content and utility of 
494.15  the department's annual report.  In regard to child 
494.16  maltreatment, the report shall include the number and kinds of 
494.17  maltreatment reports received and any other data that the 
494.18  commissioner determines is appropriate to include in a report on 
494.19  child maltreatment.  In regard to children in out-of-home 
494.20  placement, the report shall include, by county and statewide, 
494.21  information on legal status, living arrangement, age, sex, race, 
494.22  accumulated length of time in placement, reason for most recent 
494.23  placement, race of family with whom placed, and other 
494.24  information deemed appropriate on all children in out-of-home 
494.25  placement.  Out-of-home placement includes placement in any 
494.26  facility by an authorized child-placing agency. 
494.27     Sec. 5.  Minnesota Statutes 2000, section 626.556, 
494.28  subdivision 2, is amended to read: 
494.29     Subd. 2.  [DEFINITIONS.] As used in this section, the 
494.30  following terms have the meanings given them unless the specific 
494.31  content indicates otherwise: 
494.32     (a) "Sexual abuse" means the subjection of a child by a 
494.33  person responsible for the child's care, by a person who has a 
494.34  significant relationship to the child, as defined in section 
494.35  609.341, or by a person in a position of authority, as defined 
494.36  in section 609.341, subdivision 10, to any act which constitutes 
495.1   a violation of section 609.342 (criminal sexual conduct in the 
495.2   first degree), 609.343 (criminal sexual conduct in the second 
495.3   degree), 609.344 (criminal sexual conduct in the third degree), 
495.4   609.345 (criminal sexual conduct in the fourth degree), or 
495.5   609.3451 (criminal sexual conduct in the fifth degree).  Sexual 
495.6   abuse also includes any act which involves a minor which 
495.7   constitutes a violation of prostitution offenses under sections 
495.8   609.321 to 609.324 or 617.246.  Sexual abuse includes threatened 
495.9   sexual abuse.  
495.10     (b) "Person responsible for the child's care" means (1) an 
495.11  individual functioning within the family unit and having 
495.12  responsibilities for the care of the child such as a parent, 
495.13  guardian, or other person having similar care responsibilities, 
495.14  or (2) an individual functioning outside the family unit and 
495.15  having responsibilities for the care of the child such as a 
495.16  teacher, school administrator, or other lawful custodian of a 
495.17  child having either full-time or short-term care 
495.18  responsibilities including, but not limited to, day care, 
495.19  babysitting whether paid or unpaid, counseling, teaching, and 
495.20  coaching.  
495.21     (c) "Neglect" means: 
495.22     (1) failure by a person responsible for a child's care to 
495.23  supply a child with necessary food, clothing, shelter, health, 
495.24  medical, or other care required for the child's physical or 
495.25  mental health when reasonably able to do so; 
495.26     (2) failure to protect a child from conditions or actions 
495.27  which imminently and seriously endanger the child's physical or 
495.28  mental health when reasonably able to do so; 
495.29     (3) failure to provide for necessary supervision or child 
495.30  care arrangements appropriate for a child after considering 
495.31  factors as the child's age, mental ability, physical condition, 
495.32  length of absence, or environment, when the child is unable to 
495.33  care for the child's own basic needs or safety, or the basic 
495.34  needs or safety of another child in their care; 
495.35     (4) failure to ensure that the child is educated as defined 
495.36  in sections 120A.22 and 260C.163, subdivision 11; 
496.1      (5) nothing in this section shall be construed to mean that 
496.2   a child is neglected solely because the child's parent, 
496.3   guardian, or other person responsible for the child's care in 
496.4   good faith selects and depends upon spiritual means or prayer 
496.5   for treatment or care of disease or remedial care of the child 
496.6   in lieu of medical care; except that a parent, guardian, or 
496.7   caretaker, or a person mandated to report pursuant to 
496.8   subdivision 3, has a duty to report if a lack of medical care 
496.9   may cause serious danger to the child's health.  This section 
496.10  does not impose upon persons, not otherwise legally responsible 
496.11  for providing a child with necessary food, clothing, shelter, 
496.12  education, or medical care, a duty to provide that care; 
496.13     (6) prenatal exposure to a controlled substance, as defined 
496.14  in section 253B.02, subdivision 2, used by the mother for a 
496.15  nonmedical purpose, as evidenced by withdrawal symptoms in the 
496.16  child at birth, results of a toxicology test performed on the 
496.17  mother at delivery or the child at birth, or medical effects or 
496.18  developmental delays during the child's first year of life that 
496.19  medically indicate prenatal exposure to a controlled substance; 
496.20     (7) "medical neglect" as defined in section 260C.007, 
496.21  subdivision 4, clause (5); 
496.22     (8) chronic and severe use of alcohol or a controlled 
496.23  substance by a parent or person responsible for the care of the 
496.24  child that adversely affects the child's basic needs and safety; 
496.25  or 
496.26     (9) emotional harm from a pattern of behavior which 
496.27  contributes to impaired emotional functioning of the child which 
496.28  may be demonstrated by a substantial and observable effect in 
496.29  the child's behavior, emotional response, or cognition that is 
496.30  not within the normal range for the child's age and stage of 
496.31  development, with due regard to the child's culture. 
496.32     (d) "Physical abuse" means any physical injury, mental 
496.33  injury, or threatened injury, inflicted by a person responsible 
496.34  for the child's care on a child other than by accidental means, 
496.35  or any physical or mental injury that cannot reasonably be 
496.36  explained by the child's history of injuries, or any aversive 
497.1   and deprivation procedures that have not been authorized under 
497.2   section 245.825.  Abuse does not include reasonable and moderate 
497.3   physical discipline of a child administered by a parent or legal 
497.4   guardian which does not result in an injury.  Actions which are 
497.5   not reasonable and moderate include, but are not limited to, any 
497.6   of the following that are done in anger or without regard to the 
497.7   safety of the child: 
497.8      (1) throwing, kicking, burning, biting, or cutting a child; 
497.9      (2) striking a child with a closed fist; 
497.10     (3) shaking a child under age three; 
497.11     (4) striking or other actions which result in any 
497.12  nonaccidental injury to a child under 18 months of age; 
497.13     (5) unreasonable interference with a child's breathing; 
497.14     (6) threatening a child with a weapon, as defined in 
497.15  section 609.02, subdivision 6; 
497.16     (7) striking a child under age one on the face or head; 
497.17     (8) purposely giving a child poison, alcohol, or dangerous, 
497.18  harmful, or controlled substances which were not prescribed for 
497.19  the child by a practitioner, in order to control or punish the 
497.20  child; or other substances that substantially affect the child's 
497.21  behavior, motor coordination, or judgment or that results in 
497.22  sickness or internal injury, or subjects the child to medical 
497.23  procedures that would be unnecessary if the child were not 
497.24  exposed to the substances; or 
497.25     (9) unreasonable physical confinement or restraint not 
497.26  permitted under section 609.379, including but not limited to 
497.27  tying, caging, or chaining. 
497.28     (e) "Report" means any report received by the local welfare 
497.29  agency, police department, or county sheriff pursuant to this 
497.30  section. 
497.31     (f) "Facility" means a licensed or unlicensed day care 
497.32  facility, residential facility, agency, hospital, sanitarium, or 
497.33  other facility or institution required to be licensed under 
497.34  sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or 
497.35  chapter 245B; or a school as defined in sections 120A.05, 
497.36  subdivisions 9, 11, and 13; and 124D.10; or a nonlicensed 
498.1   personal care provider organization as defined in sections 
498.2   256B.04, subdivision 16, and 256B.0625, subdivision 19a. 
498.3      (g) "Operator" means an operator or agency as defined in 
498.4   section 245A.02.  
498.5      (h) "Commissioner" means the commissioner of human services.
498.6      (i) "Assessment" includes authority to interview the child, 
498.7   the person or persons responsible for the child's care, the 
498.8   alleged perpetrator, and any other person with knowledge of the 
498.9   abuse or neglect for the purpose of gathering the facts, 
498.10  assessing the risk to the child, and formulating a plan.  
498.11     (j) "Practice of social services," for the purposes of 
498.12  subdivision 3, includes but is not limited to employee 
498.13  assistance counseling and the provision of guardian ad litem and 
498.14  parenting time expeditor services.  
498.15     (k) "Mental injury" means an injury to the psychological 
498.16  capacity or emotional stability of a child as evidenced by an 
498.17  observable or substantial impairment in the child's ability to 
498.18  function within a normal range of performance and behavior with 
498.19  due regard to the child's culture. 
498.20     (l) "Threatened injury" means a statement, overt act, 
498.21  condition, or status that represents a substantial risk of 
498.22  physical or sexual abuse or mental injury. 
498.23     (m) Persons who conduct assessments or investigations under 
498.24  this section shall take into account accepted child-rearing 
498.25  practices of the culture in which a child participates, which 
498.26  are not injurious to the child's health, welfare, and safety. 
498.27     (n) "Maltreatment of a child in a facility" means physical 
498.28  abuse, sexual abuse, or neglect that occurs while a child is 
498.29  under the care of a facility, or the following acts committed by 
498.30  a person other than a child receiving services, with a child or 
498.31  in the presence of a child who is or should be under the 
498.32  supervision of the facility: 
498.33     (1) an act against a child that constitutes a violation of, 
498.34  an attempt to violate, or aiding and abetting a violation of: 
498.35     (i) sections 609.221 to 609.224 (assault in the first 
498.36  through fifth degrees); or 
499.1      (ii) section 609.52 (theft); 
499.2      (2) conduct that is not an accident or authorized conduct 
499.3   that produces or could reasonably be expected to produce 
499.4   physical pain or injury or mental injury, including, but not 
499.5   limited to, the following: 
499.6      (i) hitting, slapping, kicking, pinching, biting, or 
499.7   shaking; 
499.8      (ii) use of an aversive or deprivation procedure, 
499.9   unreasonable confinement, or involuntary seclusion, including an 
499.10  unreasonable, forced separation of the child from other persons, 
499.11  except aversive or deprivation procedures for developmentally 
499.12  disabled children authorized under section 245.825; or 
499.13     (iii) use of an unreasonable restraint, including tying, 
499.14  caging, chaining, or any other unreasonable physical or manual 
499.15  method of restricting or prohibiting movement; 
499.16     (3) in the absence of legal authority, willfully using, 
499.17  withholding, or disposing of funds or property of a child 
499.18  receiving services in a facility that is not considered to be 
499.19  contraband by the facility or school; 
499.20     (4) sexual conduct with a child or in the presence of a 
499.21  child that a reasonable person would consider to be sexual 
499.22  behavior or exposing the child to sexual behavior or material 
499.23  that is inappropriate for the age and developmental level of the 
499.24  child; or 
499.25     (5) sexual contact as defined in section 609.341 between a 
499.26  facility staff, or an associate of the facility staff, and a 
499.27  child receiving services. 
499.28     For purposes of this paragraph, a child is not abused for 
499.29  the sole reason that a person is engaged in authorized conduct.  
499.30     (o) "Authorized conduct" means the provision of program 
499.31  services, education for schools, health care, or other personal 
499.32  care services; or provision of services or education under a 
499.33  written program plan, individual education plan, or school 
499.34  discipline plan, done in the best interests of the child by an 
499.35  individual, facility, or employee or person providing services 
499.36  or education in a facility under the rights, privileges, and 
500.1   responsibilities conferred by state license, certification, or 
500.2   registration.  
500.3      (p) "Accident" means a sudden, unforeseen, and unexpected 
500.4   occurrence or event that: 
500.5      (1) was not likely to occur and could not have been 
500.6   prevented by the exercise of due care; and 
500.7      (2) if occurring while a child is receiving services from a 
500.8   facility, occurs when the facility and the staff person 
500.9   providing the services in the facility are in compliance with 
500.10  applicable law relevant to the occurrence or event. 
500.11     Sec. 6.  Minnesota Statutes 2000, section 626.556, is 
500.12  amended by adding a subdivision to read: 
500.13     Subd. 3d.  [FACILITY PROCEDURES; INTERNAL REPORTING.] (a) 
500.14  Except for child foster care and family child care, a facility 
500.15  licensed under sections 245A.01 to 245A.16 and chapter 245B 
500.16  shall establish and enforce an ongoing written procedure in 
500.17  compliance with applicable licensing rules to ensure that all 
500.18  cases of suspected maltreatment are reported.  The procedure 
500.19  must include the definitions of maltreatment and the phone 
500.20  numbers for the local welfare agency, police department, county 
500.21  sheriff, and agency responsible for assessing or investigating 
500.22  maltreatment under this section.  Procedures must include a 
500.23  method for providing children or family members with written 
500.24  information on where to report suspected maltreatment.  Mandated 
500.25  reporters in a facility must receive orientation on this 
500.26  procedure before having direct contact with children and annual 
500.27  training on reporting of maltreatment.  
500.28     (b) If a facility has an internal reporting procedure, a 
500.29  mandated reporter may meet the reporting requirements of this 
500.30  section by reporting internally.  The facility remains 
500.31  responsible for complying with the immediate reporting 
500.32  requirements of this section.  A facility with an internal 
500.33  reporting procedure that receives an internal report from a 
500.34  mandated reporter shall give the mandated reporter a written 
500.35  notice if the facility has not reported the incident to the 
500.36  agency responsible for assessing or investigating maltreatment.  
501.1   The written notice must be provided within two working days of 
501.2   receipt of the internal report in a manner that protects the 
501.3   confidentiality of the reporter.  The written notice to the 
501.4   mandated reporter must inform the reporter that if the reporter 
501.5   is not satisfied with the action taken by the facility, the 
501.6   reporter may report externally.  
501.7      (c) A facility may not prohibit a mandated reporter from 
501.8   reporting externally and may not retaliate against a mandated 
501.9   reporter who, in good faith, reports an incident to the agency 
501.10  responsible for assessing or investigating maltreatment. 
501.11     Sec. 7.  Minnesota Statutes 2000, section 626.556, 
501.12  subdivision 10, is amended to read: 
501.13     Subd. 10.  [DUTIES OF LOCAL WELFARE AGENCY AND LOCAL LAW 
501.14  ENFORCEMENT AGENCY UPON RECEIPT OF A REPORT.] (a) If the report 
501.15  alleges neglect, physical abuse, or sexual abuse by a parent, 
501.16  guardian, or individual functioning within the family unit as a 
501.17  person responsible for the child's care, the local welfare 
501.18  agency shall immediately conduct an assessment including 
501.19  gathering information on the existence of substance abuse and 
501.20  offer protective social services for purposes of preventing 
501.21  further abuses, safeguarding and enhancing the welfare of the 
501.22  abused or neglected minor, and preserving family life whenever 
501.23  possible.  If the report alleges a violation of a criminal 
501.24  statute involving sexual abuse, physical abuse, or neglect or 
501.25  endangerment, under section 609.378, the local law enforcement 
501.26  agency and local welfare agency shall coordinate the planning 
501.27  and execution of their respective investigation and assessment 
501.28  efforts to avoid a duplication of fact-finding efforts and 
501.29  multiple interviews.  Each agency shall prepare a separate 
501.30  report of the results of its investigation.  In cases of alleged 
501.31  child maltreatment resulting in death, the local agency may rely 
501.32  on the fact-finding efforts of a law enforcement investigation 
501.33  to make a determination of whether or not maltreatment 
501.34  occurred.  When necessary the local welfare agency shall seek 
501.35  authority to remove the child from the custody of a parent, 
501.36  guardian, or adult with whom the child is living.  In performing 
502.1   any of these duties, the local welfare agency shall maintain 
502.2   appropriate records.  
502.3      If the assessment indicates there is a potential for abuse 
502.4   of alcohol or other drugs by the parent, guardian, or person 
502.5   responsible for the child's care, the local welfare agency shall 
502.6   conduct a chemical use assessment pursuant to Minnesota Rules, 
502.7   part 9530.6615.  The local welfare agency shall report the 
502.8   determination of the chemical use assessment, and the 
502.9   recommendations and referrals for alcohol and other drug 
502.10  treatment services to the state authority on alcohol and drug 
502.11  abuse. 
502.12     (b) When a local agency receives a report or otherwise has 
502.13  information indicating that a child who is a client, as defined 
502.14  in section 245.91, has been the subject of physical abuse, 
502.15  sexual abuse, or neglect at an agency, facility, or program as 
502.16  defined in section 245.91, it shall, in addition to its other 
502.17  duties under this section, immediately inform the ombudsman 
502.18  established under sections 245.91 to 245.97. 
502.19     (c) Authority of the local welfare agency responsible for 
502.20  assessing the child abuse or neglect report and of the local law 
502.21  enforcement agency for investigating the alleged abuse or 
502.22  neglect includes, but is not limited to, authority to interview, 
502.23  without parental consent, the alleged victim and any other 
502.24  minors who currently reside with or who have resided with the 
502.25  alleged offender.  The interview may take place at school or at 
502.26  any facility or other place where the alleged victim or other 
502.27  minors might be found or the child may be transported to, and 
502.28  the interview conducted at, a place appropriate for the 
502.29  interview of a child designated by the local welfare agency or 
502.30  law enforcement agency.  The interview may take place outside 
502.31  the presence of the alleged offender or parent, legal custodian, 
502.32  guardian, or school official.  Except as provided in this 
502.33  paragraph, the parent, legal custodian, or guardian shall be 
502.34  notified by the responsible local welfare or law enforcement 
502.35  agency no later than the conclusion of the investigation or 
502.36  assessment that this interview has occurred.  Notwithstanding 
503.1   rule 49.02 of the Minnesota rules of procedure for juvenile 
503.2   courts, the juvenile court may, after hearing on an ex parte 
503.3   motion by the local welfare agency, order that, where reasonable 
503.4   cause exists, the agency withhold notification of this interview 
503.5   from the parent, legal custodian, or guardian.  If the interview 
503.6   took place or is to take place on school property, the order 
503.7   shall specify that school officials may not disclose to the 
503.8   parent, legal custodian, or guardian the contents of the 
503.9   notification of intent to interview the child on school 
503.10  property, as provided under this paragraph, and any other 
503.11  related information regarding the interview that may be a part 
503.12  of the child's school record.  A copy of the order shall be sent 
503.13  by the local welfare or law enforcement agency to the 
503.14  appropriate school official. 
503.15     (d) When the local welfare or local law enforcement agency 
503.16  determines that an interview should take place on school 
503.17  property, written notification of intent to interview the child 
503.18  on school property must be received by school officials prior to 
503.19  the interview.  The notification shall include the name of the 
503.20  child to be interviewed, the purpose of the interview, and a 
503.21  reference to the statutory authority to conduct an interview on 
503.22  school property.  For interviews conducted by the local welfare 
503.23  agency, the notification shall be signed by the chair of the 
503.24  local social services agency or the chair's designee.  The 
503.25  notification shall be private data on individuals subject to the 
503.26  provisions of this paragraph.  School officials may not disclose 
503.27  to the parent, legal custodian, or guardian the contents of the 
503.28  notification or any other related information regarding the 
503.29  interview until notified in writing by the local welfare or law 
503.30  enforcement agency that the investigation or assessment has been 
503.31  concluded.  Until that time, the local welfare or law 
503.32  enforcement agency shall be solely responsible for any 
503.33  disclosures regarding the nature of the assessment or 
503.34  investigation.  
503.35     Except where the alleged offender is believed to be a 
503.36  school official or employee, the time and place, and manner of 
504.1   the interview on school premises shall be within the discretion 
504.2   of school officials, but the local welfare or law enforcement 
504.3   agency shall have the exclusive authority to determine who may 
504.4   attend the interview.  The conditions as to time, place, and 
504.5   manner of the interview set by the school officials shall be 
504.6   reasonable and the interview shall be conducted not more than 24 
504.7   hours after the receipt of the notification unless another time 
504.8   is considered necessary by agreement between the school 
504.9   officials and the local welfare or law enforcement agency.  
504.10  Where the school fails to comply with the provisions of this 
504.11  paragraph, the juvenile court may order the school to comply.  
504.12  Every effort must be made to reduce the disruption of the 
504.13  educational program of the child, other students, or school 
504.14  staff when an interview is conducted on school premises.  
504.15     (e) Where the alleged offender or a person responsible for 
504.16  the care of the alleged victim or other minor prevents access to 
504.17  the victim or other minor by the local welfare agency, the 
504.18  juvenile court may order the parents, legal custodian, or 
504.19  guardian to produce the alleged victim or other minor for 
504.20  questioning by the local welfare agency or the local law 
504.21  enforcement agency outside the presence of the alleged offender 
504.22  or any person responsible for the child's care at reasonable 
504.23  places and times as specified by court order.  
504.24     (f) Before making an order under paragraph (e), the court 
504.25  shall issue an order to show cause, either upon its own motion 
504.26  or upon a verified petition, specifying the basis for the 
504.27  requested interviews and fixing the time and place of the 
504.28  hearing.  The order to show cause shall be served personally and 
504.29  shall be heard in the same manner as provided in other cases in 
504.30  the juvenile court.  The court shall consider the need for 
504.31  appointment of a guardian ad litem to protect the best interests 
504.32  of the child.  If appointed, the guardian ad litem shall be 
504.33  present at the hearing on the order to show cause.  
504.34     (g) The commissioner, the ombudsman for mental health and 
504.35  mental retardation, the local welfare agencies responsible for 
504.36  investigating reports, and the local law enforcement agencies 
505.1   have the right to enter facilities as defined in subdivision 2 
505.2   and to inspect and copy the facility's records, including 
505.3   medical records, as part of the investigation.  Notwithstanding 
505.4   the provisions of chapter 13, they also have the right to inform 
505.5   the facility under investigation that they are conducting an 
505.6   investigation, to disclose to the facility the names of the 
505.7   individuals under investigation for abusing or neglecting a 
505.8   child, and to provide the facility with a copy of the report and 
505.9   the investigative findings. 
505.10     (h) The local welfare agency shall collect available and 
505.11  relevant information to ascertain whether maltreatment occurred 
505.12  and whether protective services are needed.  Information 
505.13  collected includes, when relevant, information with regard to 
505.14  the person reporting the alleged maltreatment, including the 
505.15  nature of the reporter's relationship to the child and to the 
505.16  alleged offender, and the basis of the reporter's knowledge for 
505.17  the report; the child allegedly being maltreated; the alleged 
505.18  offender; the child's caretaker; and other collateral sources 
505.19  having relevant information related to the alleged 
505.20  maltreatment.  The local welfare agency may make a determination 
505.21  of no maltreatment early in an assessment, and close the case 
505.22  and retain immunity, if the collected information shows no basis 
505.23  for a full assessment or investigation. 
505.24     Information relevant to the assessment or investigation 
505.25  must be asked for, and may include: 
505.26     (1) the child's sex and age, prior reports of maltreatment, 
505.27  information relating to developmental functioning, credibility 
505.28  of the child's statement, and whether the information provided 
505.29  under this clause is consistent with other information collected 
505.30  during the course of the assessment or investigation; 
505.31     (2) the alleged offender's age, a record check for prior 
505.32  reports of maltreatment, and criminal charges and convictions.  
505.33  The local welfare agency must provide the alleged offender with 
505.34  an opportunity to make a statement.  The alleged offender may 
505.35  submit supporting documentation relevant to the assessment or 
505.36  investigation; 
506.1      (3) collateral source information regarding the alleged 
506.2   maltreatment and care of the child.  Collateral information 
506.3   includes, when relevant:  (i) a medical examination of the 
506.4   child; (ii) prior medical records relating to the alleged 
506.5   maltreatment or the care of the child maintained by any 
506.6   facility, clinic, or health care professional and an interview 
506.7   with the treating professionals; and (iii) interviews with the 
506.8   child's caretakers, including the child's parent, guardian, 
506.9   foster parent, child care provider, teachers, counselors, family 
506.10  members, relatives, and other persons who may have knowledge 
506.11  regarding the alleged maltreatment and the care of the child; 
506.12  and 
506.13     (4) information on the existence of domestic abuse and 
506.14  violence in the home of the child, and substance abuse. 
506.15     Nothing in this paragraph precludes the local welfare 
506.16  agency from collecting other relevant information necessary to 
506.17  conduct the assessment or investigation.  Notwithstanding 
506.18  section 13.384 or 144.335, the local welfare agency has access 
506.19  to medical data and records for purposes of clause (3).  
506.20  Notwithstanding the data's classification in the possession of 
506.21  any other agency, data acquired by the local welfare agency 
506.22  during the course of the assessment or investigation are private 
506.23  data on individuals and must be maintained in accordance with 
506.24  subdivision 11. 
506.25     (i) In the initial stages of an assessment or 
506.26  investigation, the local welfare agency shall conduct a 
506.27  face-to-face observation of the child reported to be maltreated 
506.28  and a face-to-face interview of the alleged offender.  The 
506.29  interview with the alleged offender may be postponed if it would 
506.30  jeopardize an active law enforcement investigation. 
506.31     (j) The local welfare agency shall use a question and 
506.32  answer interviewing format with questioning as nondirective as 
506.33  possible to elicit spontaneous responses.  The following 
506.34  interviewing methods and procedures must be used whenever 
506.35  possible when collecting information: 
506.36     (1) audio recordings of all interviews with witnesses and 
507.1   collateral sources; and 
507.2      (2) in cases of alleged sexual abuse, audio-video 
507.3   recordings of each interview with the alleged victim and child 
507.4   witnesses. 
507.5      Sec. 8.  Minnesota Statutes 2000, section 626.556, 
507.6   subdivision 10b, is amended to read: 
507.7      Subd. 10b.  [DUTIES OF COMMISSIONER; NEGLECT OR ABUSE IN 
507.8   FACILITY.] (a) This section applies to the commissioners of 
507.9   human services, health, and children, families, and learning.  
507.10  The commissioner of the agency responsible for assessing or 
507.11  investigating the report shall immediately investigate if the 
507.12  report alleges that: 
507.13     (1) a child who is in the care of a facility as defined in 
507.14  subdivision 2 is neglected, physically abused, or sexually 
507.15  abused, or is the victim of maltreatment in a facility by an 
507.16  individual in that facility, or has been so neglected or 
507.17  abused or been the victim of maltreatment in a facility by an 
507.18  individual in that facility within the three years preceding the 
507.19  report; or 
507.20     (2) a child was neglected, physically abused, or sexually 
507.21  abused, or is the victim of maltreatment in a facility by an 
507.22  individual in a facility defined in subdivision 2, while in the 
507.23  care of that facility within the three years preceding the 
507.24  report.  
507.25     The commissioner of the agency responsible for assessing or 
507.26  investigating the report shall arrange for the transmittal to 
507.27  the commissioner of reports received by local agencies and may 
507.28  delegate to a local welfare agency the duty to investigate 
507.29  reports.  In conducting an investigation under this section, the 
507.30  commissioner has the powers and duties specified for local 
507.31  welfare agencies under this section.  The commissioner of the 
507.32  agency responsible for assessing or investigating the report or 
507.33  local welfare agency may interview any children who are or have 
507.34  been in the care of a facility under investigation and their 
507.35  parents, guardians, or legal custodians. 
507.36     (b) Prior to any interview, the commissioner of the agency 
508.1   responsible for assessing or investigating the report or local 
508.2   welfare agency shall notify the parent, guardian, or legal 
508.3   custodian of a child who will be interviewed in the manner 
508.4   provided for in subdivision 10d, paragraph (a).  If reasonable 
508.5   efforts to reach the parent, guardian, or legal custodian of a 
508.6   child in an out-of-home placement have failed, the child may be 
508.7   interviewed if there is reason to believe the interview is 
508.8   necessary to protect the child or other children in the 
508.9   facility.  The commissioner of the agency responsible for 
508.10  assessing or investigating the report or local agency must 
508.11  provide the information required in this subdivision to the 
508.12  parent, guardian, or legal custodian of a child interviewed 
508.13  without parental notification as soon as possible after the 
508.14  interview.  When the investigation is completed, any parent, 
508.15  guardian, or legal custodian notified under this subdivision 
508.16  shall receive the written memorandum provided for in subdivision 
508.17  10d, paragraph (c). 
508.18     (c) In conducting investigations under this subdivision the 
508.19  commissioner or local welfare agency shall obtain access to 
508.20  information consistent with subdivision 10, paragraphs (h), (i), 
508.21  and (j). 
508.22     (d) Except for foster care and family child care, the 
508.23  commissioner has the primary responsibility for the 
508.24  investigations and notifications required under subdivisions 10d 
508.25  and 10f for reports that allege maltreatment related to the care 
508.26  provided by or in facilities licensed by the commissioner.  The 
508.27  commissioner may request assistance from the local social 
508.28  services agency. 
508.29     Sec. 9.  Minnesota Statutes 2000, section 626.556, 
508.30  subdivision 10d, is amended to read: 
508.31     Subd. 10d.  [NOTIFICATION OF NEGLECT OR ABUSE IN FACILITY.] 
508.32  (a) When a report is received that alleges neglect, physical 
508.33  abuse, or sexual abuse, or maltreatment of a child while in the 
508.34  care of a licensed or unlicensed day care facility, residential 
508.35  facility, agency, hospital, sanitarium, or other facility or 
508.36  institution required to be licensed according to sections 144.50 
509.1   to 144.58; 241.021; or 245A.01 to 245A.16; or chapter 245B, or a 
509.2   school as defined in sections 120A.05, subdivisions 9, 11, and 
509.3   13; and 124D.10; or a nonlicensed personal care provider 
509.4   organization as defined in section 256B.04, subdivision 16, and 
509.5   256B.0625, subdivision 19a, the commissioner of the agency 
509.6   responsible for assessing or investigating the report or local 
509.7   welfare agency investigating the report shall provide the 
509.8   following information to the parent, guardian, or legal 
509.9   custodian of a child alleged to have been neglected, physically 
509.10  abused, or sexually abused, or the victim of maltreatment of a 
509.11  child in the facility:  the name of the facility; the fact that 
509.12  a report alleging neglect, physical abuse, or sexual abuse, or 
509.13  maltreatment of a child in the facility has been received; the 
509.14  nature of the alleged neglect, physical abuse, or sexual abuse, 
509.15  or maltreatment of a child in the facility; that the agency is 
509.16  conducting an investigation; any protective or corrective 
509.17  measures being taken pending the outcome of the investigation; 
509.18  and that a written memorandum will be provided when the 
509.19  investigation is completed. 
509.20     (b) The commissioner of the agency responsible for 
509.21  assessing or investigating the report or local welfare agency 
509.22  may also provide the information in paragraph (a) to the parent, 
509.23  guardian, or legal custodian of any other child in the facility 
509.24  if the investigative agency knows or has reason to believe the 
509.25  alleged neglect, physical abuse, or sexual abuse, or 
509.26  maltreatment of a child in the facility has occurred.  In 
509.27  determining whether to exercise this authority, the commissioner 
509.28  of the agency responsible for assessing or investigating the 
509.29  report or local welfare agency shall consider the seriousness of 
509.30  the alleged neglect, physical abuse, or sexual abuse, or 
509.31  maltreatment of a child in the facility; the number of children 
509.32  allegedly neglected, physically abused, or sexually abused, or 
509.33  victims of maltreatment of a child in the facility; the number 
509.34  of alleged perpetrators; and the length of the investigation.  
509.35  The facility shall be notified whenever this discretion is 
509.36  exercised. 
510.1      (c) When the commissioner of the agency responsible for 
510.2   assessing or investigating the report or local welfare agency 
510.3   has completed its investigation, every parent, guardian, or 
510.4   legal custodian notified of the investigation by the 
510.5   commissioner or local welfare agency shall be provided with the 
510.6   following information in a written memorandum:  the name of the 
510.7   facility investigated; the nature of the alleged neglect, 
510.8   physical abuse, or sexual abuse, or maltreatment of a child in 
510.9   the facility; the investigator's name; a summary of the 
510.10  investigation findings; a statement whether maltreatment was 
510.11  found; and the protective or corrective measures that are being 
510.12  or will be taken.  The memorandum shall be written in a manner 
510.13  that protects the identity of the reporter and the child and 
510.14  shall not contain the name, or to the extent possible, reveal 
510.15  the identity of the alleged perpetrator or of those interviewed 
510.16  during the investigation.  If maltreatment is determined to 
510.17  exist, the commissioner or local welfare agency shall also 
510.18  provide the written memorandum to the parent, guardian, or legal 
510.19  custodian of each child in the facility if maltreatment is 
510.20  determined to exist who had contact with the individual 
510.21  responsible for the maltreatment.  When the facility is the 
510.22  responsible party for maltreatment, the commissioner or local 
510.23  welfare agency shall also provide the written memorandum to the 
510.24  parent, guardian, or legal custodian of each child who received 
510.25  services in the population of the facility where the 
510.26  maltreatment occurred.  This notification must be provided to 
510.27  the parent, guardian, or legal custodian of each child receiving 
510.28  services from the time the maltreatment occurred until either 
510.29  the individual responsible for maltreatment is no longer in 
510.30  contact with a child or children in the facility or the 
510.31  conclusion of the investigation. 
510.32     Sec. 10.  Minnesota Statutes 2000, section 626.556, 
510.33  subdivision 10e, is amended to read: 
510.34     Subd. 10e.  [DETERMINATIONS.] Upon the conclusion of every 
510.35  assessment or investigation it conducts, the local welfare 
510.36  agency shall make two determinations:  first, whether 
511.1   maltreatment has occurred; and second, whether child protective 
511.2   services are needed.  When maltreatment is determined in an 
511.3   investigation involving a facility, the investigating agency 
511.4   shall also determine whether the facility or individual was 
511.5   responsible for the maltreatment using the mitigating factors in 
511.6   paragraph (d).  Determinations under this subdivision must be 
511.7   made based on a preponderance of the evidence. 
511.8      (a) For the purposes of this subdivision, "maltreatment" 
511.9   means any of the following acts or omissions committed by a 
511.10  person responsible for the child's care: 
511.11     (1) physical abuse as defined in subdivision 2, paragraph 
511.12  (d); 
511.13     (2) neglect as defined in subdivision 2, paragraph (c); 
511.14     (3) sexual abuse as defined in subdivision 2, paragraph 
511.15  (a); or 
511.16     (4) mental injury as defined in subdivision 2, paragraph 
511.17  (k); or 
511.18     (5) maltreatment of a child in a facility as defined in 
511.19  subdivision 2, paragraph (n). 
511.20     (b) For the purposes of this subdivision, a determination 
511.21  that child protective services are needed means that the local 
511.22  welfare agency has documented conditions during the assessment 
511.23  or investigation sufficient to cause a child protection worker, 
511.24  as defined in section 626.559, subdivision 1, to conclude that a 
511.25  child is at significant risk of maltreatment if protective 
511.26  intervention is not provided and that the individuals 
511.27  responsible for the child's care have not taken or are not 
511.28  likely to take actions to protect the child from maltreatment or 
511.29  risk of maltreatment. 
511.30     (c) This subdivision does not mean that maltreatment has 
511.31  occurred solely because the child's parent, guardian, or other 
511.32  person responsible for the child's care in good faith selects 
511.33  and depends upon spiritual means or prayer for treatment or care 
511.34  of disease or remedial care of the child, in lieu of medical 
511.35  care.  However, if lack of medical care may result in serious 
511.36  danger to the child's health, the local welfare agency may 
512.1   ensure that necessary medical services are provided to the child.
512.2      (d) When determining whether the facility or individual is 
512.3   the responsible party for determined maltreatment in a facility, 
512.4   the investigating agency shall consider at least the following 
512.5   mitigating factors: 
512.6      (1) whether the actions of the facility or the individual 
512.7   caregivers were according to, and followed the terms of, an 
512.8   erroneous physician order, prescription, individual care plan, 
512.9   or directive; however, this is not a mitigating factor when the 
512.10  facility or caregiver was responsible for the issuance of the 
512.11  erroneous order, prescription, individual care plan, or 
512.12  directive or knew or should have known of the errors and took no 
512.13  reasonable measures to correct the defect before administering 
512.14  care; 
512.15     (2) comparative responsibility between the facility, other 
512.16  caregivers, and requirements placed upon an employee, including 
512.17  the facility's compliance with related regulatory standards and 
512.18  the adequacy of facility policies and procedures, facility 
512.19  training, an individual's participation in the training, the 
512.20  caregiver's supervision, and facility staffing levels and the 
512.21  scope of the individual employee's authority and discretion; and 
512.22     (3) whether the facility or individual followed 
512.23  professional standards in exercising professional judgment. 
512.24     Individual counties may implement more detailed definitions 
512.25  or criteria that indicate which allegations to investigate, as 
512.26  long as a county's policies are consistent with the definitions 
512.27  in the statutes and rules and are approved by the county board.  
512.28  Each local welfare agency shall periodically inform mandated 
512.29  reporters under subdivision 3 who work in the county of the 
512.30  definitions of maltreatment in the statutes and rules and any 
512.31  additional definitions or criteria that have been approved by 
512.32  the county board. 
512.33     Sec. 11.  Minnesota Statutes 2000, section 626.556, 
512.34  subdivision 10f, is amended to read: 
512.35     Subd. 10f.  [NOTICE OF DETERMINATIONS.] Within ten working 
512.36  days of the conclusion of an assessment, the local welfare 
513.1   agency or agency responsible for assessing or investigating the 
513.2   report shall notify the parent or guardian of the child, the 
513.3   person determined to be maltreating the child, and if 
513.4   applicable, the director of the facility, of the determination 
513.5   and a summary of the specific reasons for the determination.  
513.6   The notice must also include a certification that the 
513.7   information collection procedures under subdivision 10, 
513.8   paragraphs (h), (i), and (j), were followed and a notice of the 
513.9   right of a data subject to obtain access to other private data 
513.10  on the subject collected, created, or maintained under this 
513.11  section.  In addition, the notice shall include the length of 
513.12  time that the records will be kept under subdivision 11c.  The 
513.13  investigating agency shall notify the parent or guardian of the 
513.14  child who is the subject of the report, and any person or 
513.15  facility determined to have maltreated a child, of their 
513.16  appeal or review rights under this section or section 3. 
513.17     Sec. 12.  Minnesota Statutes 2000, section 626.556, 
513.18  subdivision 10i, is amended to read: 
513.19     Subd. 10i.  [ADMINISTRATIVE RECONSIDERATION OF FINAL 
513.20  DETERMINATION OF MALTREATMENT; REVIEW PANEL.] (a) An individual 
513.21  or facility that the commissioner or a local social service 
513.22  agency determines has maltreated a child, or the child's 
513.23  designee an interested person acting on behalf of the child, 
513.24  regardless of the determination, who contests the investigating 
513.25  agency's final determination regarding maltreatment, may request 
513.26  the investigating agency to reconsider its final determination 
513.27  regarding maltreatment.  The request for reconsideration must be 
513.28  submitted in writing to the investigating agency within 15 
513.29  calendar days after receipt of notice of the final determination 
513.30  regarding maltreatment or, if the request is made by an 
513.31  interested person who is not entitled to notice, within 15 days 
513.32  after receipt of the notice by the parent or guardian of the 
513.33  child.  
513.34     (b) If the investigating agency denies the request or fails 
513.35  to act upon the request within 15 calendar days after receiving 
513.36  the request for reconsideration, the person or facility entitled 
514.1   to a fair hearing under section 256.045 may submit to the 
514.2   commissioner of human services a written request for a hearing 
514.3   under that section.  For reports involving maltreatment of a 
514.4   child in a facility, an interested person acting on behalf of 
514.5   the child may request a review by the child maltreatment review 
514.6   panel under section 3 if the investigating agency denies the 
514.7   request or fails to act upon the request or if the interested 
514.8   person contests a reconsidered determination.  The investigating 
514.9   agency shall notify persons who request reconsideration of their 
514.10  rights under this paragraph.  The request must be submitted in 
514.11  writing to the review panel and a copy sent to the investigating 
514.12  agency within 30 calendar days of receipt of notice of a denial 
514.13  of a request for reconsideration or of a reconsidered 
514.14  determination.  The request must specifically identify the 
514.15  aspects of the agency determination with which the person is 
514.16  dissatisfied.  
514.17     (c) If, as a result of the a reconsideration or review, the 
514.18  investigating agency changes the final determination of 
514.19  maltreatment, that agency shall notify the parties specified in 
514.20  subdivisions 10b, 10d, and 10f. 
514.21     (d) If an individual or facility contests the investigating 
514.22  agency's final determination regarding maltreatment by 
514.23  requesting a fair hearing under section 256.045, the 
514.24  commissioner of human services shall assure that the hearing is 
514.25  conducted and a decision is reached within 90 days of receipt of 
514.26  the request for a hearing.  The time for action on the decision 
514.27  may be extended for as many days as the hearing is postponed or 
514.28  the record is held open for the benefit of either party. 
514.29     (e) For purposes of this subdivision, "interested person 
514.30  acting on behalf of the child" means a parent or legal guardian; 
514.31  stepparent; grandparent; guardian ad litem; adult stepbrother, 
514.32  stepsister, or sibling; or adult aunt or uncle; unless the 
514.33  person has been determined to be the perpetrator of the 
514.34  maltreatment. 
514.35     Sec. 13.  Minnesota Statutes 2000, section 626.556, 
514.36  subdivision 11, is amended to read: 
515.1      Subd. 11.  [RECORDS.] (a) Except as provided in paragraph 
515.2   (b) or (c) and subdivisions 10b, 10d, 10g, and 11b, all records 
515.3   concerning individuals maintained by a local welfare agency or 
515.4   agency responsible for assessing or investigating the report 
515.5   under this section, including any written reports filed under 
515.6   subdivision 7, shall be private data on individuals, except 
515.7   insofar as copies of reports are required by subdivision 7 to be 
515.8   sent to the local police department or the county sheriff.  
515.9   Reports maintained by any police department or the county 
515.10  sheriff shall be private data on individuals except the reports 
515.11  shall be made available to the investigating, petitioning, or 
515.12  prosecuting authority, including county medical examiners or 
515.13  county coroners.  Section 13.82, subdivisions 7, 5a, and 5b, 
515.14  apply to law enforcement data other than the reports.  The local 
515.15  social services agency or agency responsible for assessing or 
515.16  investigating the report shall make available to the 
515.17  investigating, petitioning, or prosecuting authority, including 
515.18  county medical examiners or county coroners or their 
515.19  professional delegates, any records which contain information 
515.20  relating to a specific incident of neglect or abuse which is 
515.21  under investigation, petition, or prosecution and information 
515.22  relating to any prior incidents of neglect or abuse involving 
515.23  any of the same persons.  The records shall be collected and 
515.24  maintained in accordance with the provisions of chapter 13.  In 
515.25  conducting investigations and assessments pursuant to this 
515.26  section, the notice required by section 13.04, subdivision 2, 
515.27  need not be provided to a minor under the age of ten who is the 
515.28  alleged victim of abuse or neglect.  An individual subject of a 
515.29  record shall have access to the record in accordance with those 
515.30  sections, except that the name of the reporter shall be 
515.31  confidential while the report is under assessment or 
515.32  investigation except as otherwise permitted by this 
515.33  subdivision.  Any person conducting an investigation or 
515.34  assessment under this section who intentionally discloses the 
515.35  identity of a reporter prior to the completion of the 
515.36  investigation or assessment is guilty of a misdemeanor.  After 
516.1   the assessment or investigation is completed, the name of the 
516.2   reporter shall be confidential.  The subject of the report may 
516.3   compel disclosure of the name of the reporter only with the 
516.4   consent of the reporter or upon a written finding by the court 
516.5   that the report was false and that there is evidence that the 
516.6   report was made in bad faith.  This subdivision does not alter 
516.7   disclosure responsibilities or obligations under the rules of 
516.8   criminal procedure. 
516.9      (b) Upon request of the legislative auditor, data on 
516.10  individuals maintained under this section must be released to 
516.11  the legislative auditor in order for the auditor to fulfill the 
516.12  auditor's duties under section 3.971.  The auditor shall 
516.13  maintain the data in accordance with chapter 13. 
516.14     (c) The investigating agency shall exchange not public data 
516.15  with the child maltreatment review panel under section 3 if the 
516.16  data are pertinent and necessary for a review requested under 
516.17  section 3.  Upon completion of the review, the not public data 
516.18  received by the review panel must be returned to the 
516.19  investigating agency.  
516.20     Sec. 14.  Minnesota Statutes 2000, section 626.556, 
516.21  subdivision 12, is amended to read: 
516.22     Subd. 12.  [DUTIES OF FACILITY OPERATORS.] Any operator, 
516.23  employee, or volunteer worker at any facility who intentionally 
516.24  neglects, physically abuses, or sexually abuses any child in the 
516.25  care of that facility may be charged with a violation of section 
516.26  609.255, 609.377, or 609.378.  Any operator of a facility who 
516.27  knowingly permits conditions to exist which result in neglect, 
516.28  physical abuse, or sexual abuse, or maltreatment of a child in a 
516.29  facility while in the care of that facility may be charged with 
516.30  a violation of section 609.378.  The facility operator shall 
516.31  inform all mandated reporters employed by or otherwise 
516.32  associated with the facility of the duties required of mandated 
516.33  reporters and shall inform all mandatory reporters of the 
516.34  prohibition against retaliation for reports made in good faith 
516.35  under this section. 
516.36     Sec. 15.  Minnesota Statutes 2000, section 626.559, 
517.1   subdivision 2, is amended to read: 
517.2      Subd. 2.  [JOINT TRAINING.] The commissioners of human 
517.3   services and public safety shall cooperate in the development of 
517.4   a joint program for training child abuse services professionals 
517.5   in the appropriate techniques for child abuse assessment and 
517.6   investigation.  The program shall include but need not be 
517.7   limited to the following areas: 
517.8      (1) the public policy goals of the state as set forth in 
517.9   section 260C.001 and the role of the assessment or investigation 
517.10  in meeting these goals; 
517.11     (2) the special duties of child protection workers and law 
517.12  enforcement officers under section 626.556; 
517.13     (3) the appropriate methods for directing and managing 
517.14  affiliated professionals who may be utilized in providing 
517.15  protective services and strengthening family ties; 
517.16     (4) the appropriate methods for interviewing alleged 
517.17  victims of child abuse and other minors in the course of 
517.18  performing an assessment or an investigation; 
517.19     (5) the dynamics of child abuse and neglect within family 
517.20  systems and the appropriate methods for interviewing parents in 
517.21  the course of the assessment or investigation, including 
517.22  training in recognizing cases in which one of the parents is a 
517.23  victim of domestic abuse and in need of special legal or medical 
517.24  services; 
517.25     (6) the legal, evidentiary considerations that may be 
517.26  relevant to the conduct of an assessment or an investigation; 
517.27     (7) the circumstances under which it is appropriate to 
517.28  remove the alleged abuser or the alleged victim from the home; 
517.29     (8) the protective social services that are available to 
517.30  protect alleged victims from further abuse, to prevent child 
517.31  abuse and domestic abuse, and to preserve the family unit, and 
517.32  training in the preparation of case plans to coordinate services 
517.33  for the alleged child abuse victim with services for any parents 
517.34  who are victims of domestic abuse; and 
517.35     (9) the methods by which child protection workers and law 
517.36  enforcement workers cooperate in conducting assessments and 
518.1   investigations in order to avoid duplication of efforts; and 
518.2      (10) appropriate methods for interviewing alleged victims 
518.3   of child abuse and conducting investigations in cases where the 
518.4   alleged victim is developmentally, physically, or mentally 
518.5   disabled. 
518.6      Sec. 16.  [CHILD WELFARE COST CONSOLIDATION REPORT.] 
518.7      By January 15, 2002, the commissioner of human services 
518.8   shall report to the chairs and ranking minority members of 
518.9   appropriate legislative committees the feasibility and cost of 
518.10  creating a single benefit package for all children removed from 
518.11  the care of a parent or guardian pursuant to a court order under 
518.12  Minnesota Statutes, chapter 260C, regardless of a particular 
518.13  child's legal status.  Legal status includes any placement away 
518.14  from the parent or guardian, including foster or other 
518.15  residential care, guardianship with the commissioner, adoption, 
518.16  or legal custody with a relative except a birth or adoptive 
518.17  parent.  The report shall be prepared after consultation with 
518.18  public and private child-placing agencies, foster and adoptive 
518.19  parents, relatives who are legal custodians, judges, county 
518.20  attorneys, attorneys for children and parents, guardians ad 
518.21  litem, representatives of the councils on Asian-Pacific, African 
518.22  American, American Indian, and Spanish-speaking Minnesotans, and 
518.23  other appropriate child protection system stakeholders.  The 
518.24  benefit package addressed in the report shall include the cost 
518.25  of room and board, additional monthly payments associated with 
518.26  special efforts a caretaker must make or special skills or 
518.27  training a caretaker must have in order to adequately address 
518.28  the daily needs of the child, the availability of respite care, 
518.29  and any other costs associated with safely maintaining a 
518.30  particular child in a legally secure home and adequately 
518.31  addressing any special needs the child may have. 
518.32     Sec. 17. [STUDY OF OUTCOMES FOR CHILDREN IN THE CHILD 
518.33  WELFARE SYSTEM.] 
518.34     (a) The commissioner of human services, in consultation 
518.35  with local social services agencies, councils of color, 
518.36  representatives of communities of color, child advocates, 
519.1   representatives of courts, and other interested parties, shall 
519.2   study why African American children in Minnesota are 
519.3   disproportionately represented in child welfare out-of-home 
519.4   placements.  The commissioner also shall study each stage of the 
519.5   proceedings concerning children in need of protection or 
519.6   services, including the point at which children enter the child 
519.7   welfare system, each decision-making point in the child welfare 
519.8   system, and the outcomes for children in the child welfare 
519.9   system, to determine why outcomes for children differ by race.  
519.10  The commissioner shall use child welfare performance and outcome 
519.11  indicators and data and other available data as part of this 
519.12  study.  The commissioner also shall study and determine if there 
519.13  are decision-making points in the child protection system that 
519.14  lead to different outcomes for children and how those 
519.15  decision-making points affect outcomes for children.  The 
519.16  commissioner shall report and make legislative recommendations 
519.17  on the following: 
519.18     (1) amend the child protection statutes to reduce any 
519.19  identified disparities in the child protection system relating 
519.20  to outcomes for children of color, as compared to white 
519.21  children; 
519.22     (2) reduce any identified bias in the child protection 
519.23  system; 
519.24     (3) reduce the number and duration of out-of-home 
519.25  placements for African American children; and 
519.26     (4) improve the long-term outcomes for African American 
519.27  children in out-of-home placements. 
519.28     (b) The commissioner of human services shall submit the 
519.29  report and recommended legislation to the chairs and ranking 
519.30  minority members of the committees in the house of 
519.31  representatives and senate with jurisdiction over child 
519.32  protection and out-of-home placement issues by January 15, 2002. 
519.33                             ARTICLE 12 
519.34                           CHILD SUPPORT 
519.35     Section 1.  Minnesota Statutes 2000, section 13B.06, 
519.36  subdivision 4, is amended to read: 
520.1      Subd. 4.  [METHOD TO PROVIDE DATA.] To comply with the 
520.2   requirements of this section, a financial institution may either:
520.3      (1) provide to the public authority a list containing only 
520.4   the names and other necessary personal identifying information 
520.5   of all account holders for the public authority to compare 
520.6   against its list of child support obligors for the purpose of 
520.7   identifying which obligors maintain an account at the financial 
520.8   institution; the names of the obligors who maintain an account 
520.9   at the institution shall then be transmitted to the financial 
520.10  institution which shall provide the public authority with 
520.11  account information on those obligors; or 
520.12     (2) must obtain a list of child support obligors from the 
520.13  public authority and compare that data to the data maintained at 
520.14  the financial institution to identify which of the identified 
520.15  obligors maintains an account at the financial institution. 
520.16     A financial institution shall elect either method in 
520.17  writing upon written request of the public authority, and the 
520.18  election remains in effect unless the public authority agrees in 
520.19  writing to a change. 
520.20     The commissioner shall keep track of the number of 
520.21  financial institutions that elect to report under clauses (1) 
520.22  and (2) respectively and shall report this information to the 
520.23  legislature by December 1, 1999. 
520.24     Sec. 2.  Minnesota Statutes 2000, section 13B.06, 
520.25  subdivision 7, is amended to read: 
520.26     Subd. 7.  [FEES.] A financial institution may charge and 
520.27  collect a fee from the public authority for providing account 
520.28  information to the public authority.  The commissioner may pay a 
520.29  financial institution up to $150 each quarter if the 
520.30  commissioner and the financial institution have entered into a 
520.31  signed agreement that complies with federal law.  The 
520.32  commissioner shall develop procedures for the financial 
520.33  institutions to charge and collect the fee.  Payment of the fee 
520.34  is limited by the amount of the appropriation for this purpose.  
520.35  If the appropriation is insufficient, or if fund availability in 
520.36  the fourth quarter would allow payments for actual costs in 
521.1   excess of $150, the commissioner shall prorate the available 
521.2   funds among the financial institutions that have submitted a 
521.3   claim for the fee.  No financial institution shall charge or 
521.4   collect a fee that exceeds its actual costs of complying with 
521.5   this section.  The commissioner, together with an advisory group 
521.6   consisting of representatives of the financial institutions in 
521.7   the state, shall determine a fee structure that minimizes the 
521.8   cost to the state and reasonably meets the needs of the 
521.9   financial institutions, and shall report to the chairs of the 
521.10  judiciary committees in the house of representatives and the 
521.11  senate by February 1, 1998, a recommended fee structure for 
521.12  inclusion in this section evaluate whether the fee paid to 
521.13  financial institutions compensates them for their actual costs, 
521.14  including start-up costs, of complying with this section and 
521.15  shall submit a report to the legislature by July 1, 2002, with a 
521.16  recommendation for retaining or modifying the fee. 
521.17     Sec. 3.  Minnesota Statutes 2000, section 256.01, 
521.18  subdivision 2, is amended to read: 
521.19     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
521.20  section 241.021, subdivision 2, the commissioner of human 
521.21  services shall: 
521.22     (1) Administer and supervise all forms of public assistance 
521.23  provided for by state law and other welfare activities or 
521.24  services as are vested in the commissioner.  Administration and 
521.25  supervision of human services activities or services includes, 
521.26  but is not limited to, assuring timely and accurate distribution 
521.27  of benefits, completeness of service, and quality program 
521.28  management.  In addition to administering and supervising human 
521.29  services activities vested by law in the department, the 
521.30  commissioner shall have the authority to: 
521.31     (a) require county agency participation in training and 
521.32  technical assistance programs to promote compliance with 
521.33  statutes, rules, federal laws, regulations, and policies 
521.34  governing human services; 
521.35     (b) monitor, on an ongoing basis, the performance of county 
521.36  agencies in the operation and administration of human services, 
522.1   enforce compliance with statutes, rules, federal laws, 
522.2   regulations, and policies governing welfare services and promote 
522.3   excellence of administration and program operation; 
522.4      (c) develop a quality control program or other monitoring 
522.5   program to review county performance and accuracy of benefit 
522.6   determinations; 
522.7      (d) require county agencies to make an adjustment to the 
522.8   public assistance benefits issued to any individual consistent 
522.9   with federal law and regulation and state law and rule and to 
522.10  issue or recover benefits as appropriate; 
522.11     (e) delay or deny payment of all or part of the state and 
522.12  federal share of benefits and administrative reimbursement 
522.13  according to the procedures set forth in section 256.017; 
522.14     (f) make contracts with and grants to public and private 
522.15  agencies and organizations, both profit and nonprofit, and 
522.16  individuals, using appropriated funds; and 
522.17     (g) enter into contractual agreements with federally 
522.18  recognized Indian tribes with a reservation in Minnesota to the 
522.19  extent necessary for the tribe to operate a federally approved 
522.20  family assistance program or any other program under the 
522.21  supervision of the commissioner.  The commissioner shall consult 
522.22  with the affected county or counties in the contractual 
522.23  agreement negotiations, if the county or counties wish to be 
522.24  included, in order to avoid the duplication of county and tribal 
522.25  assistance program services.  The commissioner may establish 
522.26  necessary accounts for the purposes of receiving and disbursing 
522.27  funds as necessary for the operation of the programs. 
522.28     (2) Inform county agencies, on a timely basis, of changes 
522.29  in statute, rule, federal law, regulation, and policy necessary 
522.30  to county agency administration of the programs. 
522.31     (3) Administer and supervise all child welfare activities; 
522.32  promote the enforcement of laws protecting handicapped, 
522.33  dependent, neglected and delinquent children, and children born 
522.34  to mothers who were not married to the children's fathers at the 
522.35  times of the conception nor at the births of the children; 
522.36  license and supervise child-caring and child-placing agencies 
523.1   and institutions; supervise the care of children in boarding and 
523.2   foster homes or in private institutions; and generally perform 
523.3   all functions relating to the field of child welfare now vested 
523.4   in the state board of control. 
523.5      (4) Administer and supervise all noninstitutional service 
523.6   to handicapped persons, including those who are visually 
523.7   impaired, hearing impaired, or physically impaired or otherwise 
523.8   handicapped.  The commissioner may provide and contract for the 
523.9   care and treatment of qualified indigent children in facilities 
523.10  other than those located and available at state hospitals when 
523.11  it is not feasible to provide the service in state hospitals. 
523.12     (5) Assist and actively cooperate with other departments, 
523.13  agencies and institutions, local, state, and federal, by 
523.14  performing services in conformity with the purposes of Laws 
523.15  1939, chapter 431. 
523.16     (6) Act as the agent of and cooperate with the federal 
523.17  government in matters of mutual concern relative to and in 
523.18  conformity with the provisions of Laws 1939, chapter 431, 
523.19  including the administration of any federal funds granted to the 
523.20  state to aid in the performance of any functions of the 
523.21  commissioner as specified in Laws 1939, chapter 431, and 
523.22  including the promulgation of rules making uniformly available 
523.23  medical care benefits to all recipients of public assistance, at 
523.24  such times as the federal government increases its participation 
523.25  in assistance expenditures for medical care to recipients of 
523.26  public assistance, the cost thereof to be borne in the same 
523.27  proportion as are grants of aid to said recipients. 
523.28     (7) Establish and maintain any administrative units 
523.29  reasonably necessary for the performance of administrative 
523.30  functions common to all divisions of the department. 
523.31     (8) Act as designated guardian of both the estate and the 
523.32  person of all the wards of the state of Minnesota, whether by 
523.33  operation of law or by an order of court, without any further 
523.34  act or proceeding whatever, except as to persons committed as 
523.35  mentally retarded.  For children under the guardianship of the 
523.36  commissioner whose interests would be best served by adoptive 
524.1   placement, the commissioner may contract with a licensed 
524.2   child-placing agency to provide adoption services.  A contract 
524.3   with a licensed child-placing agency must be designed to 
524.4   supplement existing county efforts and may not replace existing 
524.5   county programs, unless the replacement is agreed to by the 
524.6   county board and the appropriate exclusive bargaining 
524.7   representative or the commissioner has evidence that child 
524.8   placements of the county continue to be substantially below that 
524.9   of other counties.  Funds encumbered and obligated under an 
524.10  agreement for a specific child shall remain available until the 
524.11  terms of the agreement are fulfilled or the agreement is 
524.12  terminated. 
524.13     (9) Act as coordinating referral and informational center 
524.14  on requests for service for newly arrived immigrants coming to 
524.15  Minnesota. 
524.16     (10) The specific enumeration of powers and duties as 
524.17  hereinabove set forth shall in no way be construed to be a 
524.18  limitation upon the general transfer of powers herein contained. 
524.19     (11) Establish county, regional, or statewide schedules of 
524.20  maximum fees and charges which may be paid by county agencies 
524.21  for medical, dental, surgical, hospital, nursing and nursing 
524.22  home care and medicine and medical supplies under all programs 
524.23  of medical care provided by the state and for congregate living 
524.24  care under the income maintenance programs. 
524.25     (12) Have the authority to conduct and administer 
524.26  experimental projects to test methods and procedures of 
524.27  administering assistance and services to recipients or potential 
524.28  recipients of public welfare.  To carry out such experimental 
524.29  projects, it is further provided that the commissioner of human 
524.30  services is authorized to waive the enforcement of existing 
524.31  specific statutory program requirements, rules, and standards in 
524.32  one or more counties.  The order establishing the waiver shall 
524.33  provide alternative methods and procedures of administration, 
524.34  shall not be in conflict with the basic purposes, coverage, or 
524.35  benefits provided by law, and in no event shall the duration of 
524.36  a project exceed four years.  It is further provided that no 
525.1   order establishing an experimental project as authorized by the 
525.2   provisions of this section shall become effective until the 
525.3   following conditions have been met: 
525.4      (a) The secretary of health and human services of the 
525.5   United States has agreed, for the same project, to waive state 
525.6   plan requirements relative to statewide uniformity. 
525.7      (b) A comprehensive plan, including estimated project 
525.8   costs, shall be approved by the legislative advisory commission 
525.9   and filed with the commissioner of administration.  
525.10     (13) According to federal requirements, establish 
525.11  procedures to be followed by local welfare boards in creating 
525.12  citizen advisory committees, including procedures for selection 
525.13  of committee members. 
525.14     (14) Allocate federal fiscal disallowances or sanctions 
525.15  which are based on quality control error rates for the aid to 
525.16  families with dependent children program formerly codified in 
525.17  sections 256.72 to 256.87, medical assistance, or food stamp 
525.18  program in the following manner:  
525.19     (a) One-half of the total amount of the disallowance shall 
525.20  be borne by the county boards responsible for administering the 
525.21  programs.  For the medical assistance and the AFDC program 
525.22  formerly codified in sections 256.72 to 256.87, disallowances 
525.23  shall be shared by each county board in the same proportion as 
525.24  that county's expenditures for the sanctioned program are to the 
525.25  total of all counties' expenditures for the AFDC program 
525.26  formerly codified in sections 256.72 to 256.87, and medical 
525.27  assistance programs.  For the food stamp program, sanctions 
525.28  shall be shared by each county board, with 50 percent of the 
525.29  sanction being distributed to each county in the same proportion 
525.30  as that county's administrative costs for food stamps are to the 
525.31  total of all food stamp administrative costs for all counties, 
525.32  and 50 percent of the sanctions being distributed to each county 
525.33  in the same proportion as that county's value of food stamp 
525.34  benefits issued are to the total of all benefits issued for all 
525.35  counties.  Each county shall pay its share of the disallowance 
525.36  to the state of Minnesota.  When a county fails to pay the 
526.1   amount due hereunder, the commissioner may deduct the amount 
526.2   from reimbursement otherwise due the county, or the attorney 
526.3   general, upon the request of the commissioner, may institute 
526.4   civil action to recover the amount due. 
526.5      (b) Notwithstanding the provisions of paragraph (a), if the 
526.6   disallowance results from knowing noncompliance by one or more 
526.7   counties with a specific program instruction, and that knowing 
526.8   noncompliance is a matter of official county board record, the 
526.9   commissioner may require payment or recover from the county or 
526.10  counties, in the manner prescribed in paragraph (a), an amount 
526.11  equal to the portion of the total disallowance which resulted 
526.12  from the noncompliance, and may distribute the balance of the 
526.13  disallowance according to paragraph (a).  
526.14     (15) Develop and implement special projects that maximize 
526.15  reimbursements and result in the recovery of money to the 
526.16  state.  For the purpose of recovering state money, the 
526.17  commissioner may enter into contracts with third parties.  Any 
526.18  recoveries that result from projects or contracts entered into 
526.19  under this paragraph shall be deposited in the state treasury 
526.20  and credited to a special account until the balance in the 
526.21  account reaches $1,000,000.  When the balance in the account 
526.22  exceeds $1,000,000, the excess shall be transferred and credited 
526.23  to the general fund.  All money in the account is appropriated 
526.24  to the commissioner for the purposes of this paragraph. 
526.25     (16) Have the authority to make direct payments to 
526.26  facilities providing shelter to women and their children 
526.27  according to section 256D.05, subdivision 3.  Upon the written 
526.28  request of a shelter facility that has been denied payments 
526.29  under section 256D.05, subdivision 3, the commissioner shall 
526.30  review all relevant evidence and make a determination within 30 
526.31  days of the request for review regarding issuance of direct 
526.32  payments to the shelter facility.  Failure to act within 30 days 
526.33  shall be considered a determination not to issue direct payments.
526.34     (17) Have the authority to establish and enforce the 
526.35  following county reporting requirements:  
526.36     (a) The commissioner shall establish fiscal and statistical 
527.1   reporting requirements necessary to account for the expenditure 
527.2   of funds allocated to counties for human services programs.  
527.3   When establishing financial and statistical reporting 
527.4   requirements, the commissioner shall evaluate all reports, in 
527.5   consultation with the counties, to determine if the reports can 
527.6   be simplified or the number of reports can be reduced. 
527.7      (b) The county board shall submit monthly or quarterly 
527.8   reports to the department as required by the commissioner.  
527.9   Monthly reports are due no later than 15 working days after the 
527.10  end of the month.  Quarterly reports are due no later than 30 
527.11  calendar days after the end of the quarter, unless the 
527.12  commissioner determines that the deadline must be shortened to 
527.13  20 calendar days to avoid jeopardizing compliance with federal 
527.14  deadlines or risking a loss of federal funding.  Only reports 
527.15  that are complete, legible, and in the required format shall be 
527.16  accepted by the commissioner.  
527.17     (c) If the required reports are not received by the 
527.18  deadlines established in clause (b), the commissioner may delay 
527.19  payments and withhold funds from the county board until the next 
527.20  reporting period.  When the report is needed to account for the 
527.21  use of federal funds and the late report results in a reduction 
527.22  in federal funding, the commissioner shall withhold from the 
527.23  county boards with late reports an amount equal to the reduction 
527.24  in federal funding until full federal funding is received.  
527.25     (d) A county board that submits reports that are late, 
527.26  illegible, incomplete, or not in the required format for two out 
527.27  of three consecutive reporting periods is considered 
527.28  noncompliant.  When a county board is found to be noncompliant, 
527.29  the commissioner shall notify the county board of the reason the 
527.30  county board is considered noncompliant and request that the 
527.31  county board develop a corrective action plan stating how the 
527.32  county board plans to correct the problem.  The corrective 
527.33  action plan must be submitted to the commissioner within 45 days 
527.34  after the date the county board received notice of noncompliance.
527.35     (e) The final deadline for fiscal reports or amendments to 
527.36  fiscal reports is one year after the date the report was 
528.1   originally due.  If the commissioner does not receive a report 
528.2   by the final deadline, the county board forfeits the funding 
528.3   associated with the report for that reporting period and the 
528.4   county board must repay any funds associated with the report 
528.5   received for that reporting period. 
528.6      (f) The commissioner may not delay payments, withhold 
528.7   funds, or require repayment under paragraph (c) or (e) if the 
528.8   county demonstrates that the commissioner failed to provide 
528.9   appropriate forms, guidelines, and technical assistance to 
528.10  enable the county to comply with the requirements.  If the 
528.11  county board disagrees with an action taken by the commissioner 
528.12  under paragraph (c) or (e), the county board may appeal the 
528.13  action according to sections 14.57 to 14.69. 
528.14     (g) Counties subject to withholding of funds under 
528.15  paragraph (c) or forfeiture or repayment of funds under 
528.16  paragraph (e) shall not reduce or withhold benefits or services 
528.17  to clients to cover costs incurred due to actions taken by the 
528.18  commissioner under paragraph (c) or (e). 
528.19     (18) Allocate federal fiscal disallowances or sanctions for 
528.20  audit exceptions when federal fiscal disallowances or sanctions 
528.21  are based on a statewide random sample for the foster care 
528.22  program under title IV-E of the Social Security Act, United 
528.23  States Code, title 42, in direct proportion to each county's 
528.24  title IV-E foster care maintenance claim for that period. 
528.25     (19) Be responsible for ensuring the detection, prevention, 
528.26  investigation, and resolution of fraudulent activities or 
528.27  behavior by applicants, recipients, and other participants in 
528.28  the human services programs administered by the department. 
528.29     (20) Require county agencies to identify overpayments, 
528.30  establish claims, and utilize all available and cost-beneficial 
528.31  methodologies to collect and recover these overpayments in the 
528.32  human services programs administered by the department. 
528.33     (21) Have the authority to administer a drug rebate program 
528.34  for drugs purchased pursuant to the prescription drug program 
528.35  established under section 256.955 after the beneficiary's 
528.36  satisfaction of any deductible established in the program.  The 
529.1   commissioner shall require a rebate agreement from all 
529.2   manufacturers of covered drugs as defined in section 256B.0625, 
529.3   subdivision 13.  Rebate agreements for prescription drugs 
529.4   delivered on or after July 1, 2002, must include rebates for 
529.5   individuals covered under the prescription drug program who are 
529.6   under 65 years of age.  For each drug, the amount of the rebate 
529.7   shall be equal to the basic rebate as defined for purposes of 
529.8   the federal rebate program in United States Code, title 42, 
529.9   section 1396r-8(c)(1).  This basic rebate shall be applied to 
529.10  single-source and multiple-source drugs.  The manufacturers must 
529.11  provide full payment within 30 days of receipt of the state 
529.12  invoice for the rebate within the terms and conditions used for 
529.13  the federal rebate program established pursuant to section 1927 
529.14  of title XIX of the Social Security Act.  The manufacturers must 
529.15  provide the commissioner with any information necessary to 
529.16  verify the rebate determined per drug.  The rebate program shall 
529.17  utilize the terms and conditions used for the federal rebate 
529.18  program established pursuant to section 1927 of title XIX of the 
529.19  Social Security Act. 
529.20     (22) Operate the department's communication systems account 
529.21  established in Laws 1993, First Special Session chapter 1, 
529.22  article 1, section 2, subdivision 2, to manage shared 
529.23  communication costs necessary for the operation of the programs 
529.24  the commissioner supervises.  A communications account may also 
529.25  be established for each regional treatment center which operates 
529.26  communications systems.  Each account must be used to manage 
529.27  shared communication costs necessary for the operations of the 
529.28  programs the commissioner supervises.  The commissioner may 
529.29  distribute the costs of operating and maintaining communication 
529.30  systems to participants in a manner that reflects actual usage. 
529.31  Costs may include acquisition, licensing, insurance, 
529.32  maintenance, repair, staff time and other costs as determined by 
529.33  the commissioner.  Nonprofit organizations and state, county, 
529.34  and local government agencies involved in the operation of 
529.35  programs the commissioner supervises may participate in the use 
529.36  of the department's communications technology and share in the 
530.1   cost of operation.  The commissioner may accept on behalf of the 
530.2   state any gift, bequest, devise or personal property of any 
530.3   kind, or money tendered to the state for any lawful purpose 
530.4   pertaining to the communication activities of the department.  
530.5   Any money received for this purpose must be deposited in the 
530.6   department's communication systems accounts.  Money collected by 
530.7   the commissioner for the use of communication systems must be 
530.8   deposited in the state communication systems account and is 
530.9   appropriated to the commissioner for purposes of this section. 
530.10     (23) Receive any federal matching money that is made 
530.11  available through the medical assistance program for the 
530.12  consumer satisfaction survey.  Any federal money received for 
530.13  the survey is appropriated to the commissioner for this 
530.14  purpose.  The commissioner may expend the federal money received 
530.15  for the consumer satisfaction survey in either year of the 
530.16  biennium. 
530.17     (24) Incorporate cost reimbursement claims from First Call 
530.18  Minnesota into the federal cost reimbursement claiming processes 
530.19  of the department according to federal law, rule, and 
530.20  regulations.  Any reimbursement received is appropriated to the 
530.21  commissioner and shall be disbursed to First Call Minnesota 
530.22  according to normal department payment schedules. 
530.23     (25) Develop recommended standards for foster care homes 
530.24  that address the components of specialized therapeutic services 
530.25  to be provided by foster care homes with those services. 
530.26     (26) In consultation with county child support 
530.27  representatives and county attorneys, adopt rules, in accordance 
530.28  with chapter 14, that are necessary for the operation of a 
530.29  statewide child support county performance management program. 
530.30     Sec. 4.  Minnesota Statutes 2000, section 256.741, 
530.31  subdivision 1, is amended to read: 
530.32     Subdivision 1.  [PUBLIC ASSISTANCE.] (a) The term "direct 
530.33  support" as used in this chapter and chapters 257, 518, and 518C 
530.34  refers to an assigned support payment from an obligor which is 
530.35  paid directly to a recipient of TANF or MFIP. 
530.36     (b) The term "public assistance" as used in this chapter 
531.1   and chapters 257, 518, and 518C, includes any form of assistance 
531.2   provided under the AFDC program formerly codified in sections 
531.3   256.72 to 256.87, MFIP and MFIP-R formerly codified under 
531.4   chapter 256, MFIP under chapter 256J, work first program under 
531.5   chapter 256K; child care assistance provided through the child 
531.6   care fund under chapter 119B; any form of medical assistance 
531.7   under chapter 256B; MinnesotaCare under chapter 256L; and foster 
531.8   care as provided under title IV-E of the Social Security Act. 
531.9      (b) (c) The term "child support agency" as used in this 
531.10  section refers to the public authority responsible for child 
531.11  support enforcement. 
531.12     (c) (d) The term "public assistance agency" as used in this 
531.13  section refers to a public authority providing public assistance 
531.14  to an individual. 
531.15     Sec. 5.  Minnesota Statutes 2000, section 256.741, 
531.16  subdivision 5, is amended to read: 
531.17     Subd. 5.  [COOPERATION WITH CHILD SUPPORT ENFORCEMENT.] 
531.18  After notification from a public assistance agency that an 
531.19  individual has applied for or is receiving any form of public 
531.20  assistance, the child support agency shall determine whether the 
531.21  party is cooperating with the agency in establishing paternity, 
531.22  child support, modification of an existing child support order, 
531.23  or enforcement of an existing child support order.  The public 
531.24  assistance agency shall notify each applicant or recipient in 
531.25  writing of the right to claim a good cause exemption from 
531.26  cooperating with the requirements in this section.  A copy of 
531.27  the notice must be furnished to the applicant or recipient, and 
531.28  the applicant or recipient and a representative from the public 
531.29  authority shall acknowledge receipt of the notice by signing and 
531.30  dating a copy of the notice.  The individual shall cooperate 
531.31  with the child support agency by: 
531.32     (1) providing all known information regarding the alleged 
531.33  father or obligor, including name, address, social security 
531.34  number, telephone number, place of employment or school, and the 
531.35  names and addresses of any relatives; 
531.36     (2) appearing at interviews, hearings and legal 
532.1   proceedings; 
532.2      (3) submitting to genetic tests including genetic testing 
532.3   of the child, under a judicial or administrative order; and 
532.4      (4) providing additional information known by the 
532.5   individual as necessary for cooperating in good faith with the 
532.6   child support agency. 
532.7      The caregiver of a minor child must cooperate with the 
532.8   efforts of the public authority to collect support according to 
532.9   this subdivision.  A caregiver must forward to notify the public 
532.10  authority of all support the caregiver receives during the 
532.11  period the assignment of support required under subdivision 2 is 
532.12  in effect.  Support received by a caregiver and not forwarded to 
532.13  the public authority must be repaid to the child support 
532.14  enforcement unit for any month following the date on which 
532.15  initial eligibility is determined Direct support retained by a 
532.16  caregiver must be counted as unearned income when determining 
532.17  the amount of the assistance payment, except as provided under 
532.18  subdivision 8, paragraph (b), clause (4) and repaid to the child 
532.19  support agency for any month when the direct support retained is 
532.20  greater than the court-ordered child support and the assistance 
532.21  payment and the obligor owes support arrears. 
532.22     Sec. 6.  Minnesota Statutes 2000, section 256.741, 
532.23  subdivision 8, is amended to read: 
532.24     Subd. 8.  [REFUSAL TO COOPERATE WITH SUPPORT REQUIREMENTS.] 
532.25  (a) Failure by a caregiver to satisfy any of the requirements of 
532.26  subdivision 5 constitutes refusal to cooperate, and the 
532.27  sanctions under paragraph (b) apply.  The IV-D agency must 
532.28  determine whether a caregiver has refused to cooperate according 
532.29  to subdivision 5. 
532.30     (b) Determination by the IV-D agency that a caregiver has 
532.31  refused to cooperate has the following effects: 
532.32     (1) a caregiver is subject to the applicable sanctions 
532.33  under section 256J.46; 
532.34     (2) a caregiver who is not a parent of a minor child in an 
532.35  assistance unit may choose to remove the child from the 
532.36  assistance unit unless the child is required to be in the 
533.1   assistance unit; and 
533.2      (3) a parental caregiver who refuses to cooperate is 
533.3   ineligible for medical assistance; and 
533.4      (4) direct support retained by a caregiver must be counted 
533.5   as unearned income when determining the amount of the assistance 
533.6   payment. 
533.7      Sec. 7.  Minnesota Statutes 2000, section 256.979, 
533.8   subdivision 5, is amended to read: 
533.9      Subd. 5.  [PATERNITY ESTABLISHMENT AND CHILD SUPPORT ORDER 
533.10  ESTABLISHMENT AND MODIFICATION BONUS INCENTIVES.] (a) A bonus 
533.11  incentive program is created to increase the number of paternity 
533.12  establishments and establishment and modifications of child 
533.13  support orders done by county child support enforcement agencies.
533.14     (b) A bonus must be awarded to a county child support 
533.15  agency for each case child for which the agency completes a 
533.16  paternity or child support order establishment or modification 
533.17  through judicial or administrative processes. 
533.18     (c) The rate of bonus incentive is $100 per child for each 
533.19  paternity or child support order establishment and modification 
533.20  set in a specific dollar amount. 
533.21     (d) No bonus shall be paid for a modification that is a 
533.22  result of a termination of child care costs according to section 
533.23  518.551, subdivision 5, paragraph (b), or due solely to a 
533.24  reduction of child care expenses. 
533.25     Sec. 8.  Minnesota Statutes 2000, section 256.979, 
533.26  subdivision 6, is amended to read: 
533.27     Subd. 6.  [CLAIMS FOR BONUS INCENTIVE.] (a) The 
533.28  commissioner of human services and the county agency shall 
533.29  develop procedures for the claims process and criteria using 
533.30  automated systems where possible. 
533.31     (b) Only one county agency may receive a bonus per 
533.32  paternity establishment or child support order establishment or 
533.33  modification for each case child.  The county agency completing 
533.34  the action or procedure needed to establish paternity or a child 
533.35  support order or modify an order is the county agency entitled 
533.36  to claim the bonus incentive. 
534.1      (c) Disputed claims must be submitted to the commissioner 
534.2   of human services and the commissioner's decision is final. 
534.3      (d) For purposes of this section, "case" means a family 
534.4   unit for whom the county agency is providing child support 
534.5   enforcement services.  
534.6      Sec. 9.  Minnesota Statutes 2000, section 393.07, is 
534.7   amended by adding a subdivision to read: 
534.8      Subd. 9a.  [ADMINISTRATIVE PENALTIES.] (a) The public 
534.9   authority, as defined in section 518.54, may sanction an 
534.10  employer or payor of funds up to $700 for failing to comply with 
534.11  section 518.5513, subdivision 5, paragraph (a), clauses (5) and 
534.12  (8), if: 
534.13     (1) the public authority mails the employer or payor of 
534.14  funds a notice of an administrative sanction, at the employer's 
534.15  or payor's of funds last known address, which includes the date 
534.16  the sanction will take effect, the amount of the sanction, the 
534.17  reason for imposing the sanction, and the corrective action that 
534.18  must be taken to avoid the sanction; and 
534.19     (2) the employer or payor of funds fails to correct the 
534.20  violation before the effective date of the sanction. 
534.21     (b) The public authority shall include with the sanction 
534.22  notice an additional notice of the right to appeal the sanction 
534.23  and the process for making the appeal.  
534.24     (c) Unless an appeal is made, the administrative 
534.25  determination of the sanction is final and binding. 
534.26     Sec. 10.  Minnesota Statutes 2000, section 518.551, 
534.27  subdivision 13, is amended to read: 
534.28     Subd. 13.  [DRIVER'S LICENSE SUSPENSION.] (a) Upon motion 
534.29  of an obligee, which has been properly served on the obligor and 
534.30  upon which there has been an opportunity for hearing, if a court 
534.31  finds that the obligor has been or may be issued a driver's 
534.32  license by the commissioner of public safety and the obligor is 
534.33  in arrears in court-ordered child support or maintenance 
534.34  payments, or both, in an amount equal to or greater than three 
534.35  times the obligor's total monthly support and maintenance 
534.36  payments and is not in compliance with a written payment 
535.1   agreement regarding both current support and arrearages approved 
535.2   by the court, a child support magistrate, or the public 
535.3   authority, the court shall order the commissioner of public 
535.4   safety to suspend the obligor's driver's license.  The court's 
535.5   order must be stayed for 90 days in order to allow the obligor 
535.6   to execute a written payment agreement regarding both current 
535.7   support and arrearages, which payment agreement must be approved 
535.8   by either the court or the public authority responsible for 
535.9   child support enforcement.  If the obligor has not executed or 
535.10  is not in compliance with a written payment agreement regarding 
535.11  both current support and arrearages after the 90 days expires, 
535.12  the court's order becomes effective and the commissioner of 
535.13  public safety shall suspend the obligor's driver's license.  The 
535.14  remedy under this subdivision is in addition to any other 
535.15  enforcement remedy available to the court.  An obligee may not 
535.16  bring a motion under this paragraph within 12 months of a denial 
535.17  of a previous motion under this paragraph. 
535.18     (b) If a public authority responsible for child support 
535.19  enforcement determines that the obligor has been or may be 
535.20  issued a driver's license by the commissioner of public safety 
535.21  and the obligor is in arrears in court-ordered child support or 
535.22  maintenance payments or both in an amount equal to or greater 
535.23  than three times the obligor's total monthly support and 
535.24  maintenance payments and not in compliance with a written 
535.25  payment agreement regarding both current support and arrearages 
535.26  approved by the court, a child support magistrate, or the public 
535.27  authority, the public authority shall direct the commissioner of 
535.28  public safety to suspend the obligor's driver's license.  The 
535.29  remedy under this subdivision is in addition to any other 
535.30  enforcement remedy available to the public authority. 
535.31     (c) At least 90 days prior to notifying the commissioner of 
535.32  public safety according to paragraph (b), the public authority 
535.33  must mail a written notice to the obligor at the obligor's last 
535.34  known address, that it intends to seek suspension of the 
535.35  obligor's driver's license and that the obligor must request a 
535.36  hearing within 30 days in order to contest the suspension.  If 
536.1   the obligor makes a written request for a hearing within 30 days 
536.2   of the date of the notice, a court hearing must be held.  
536.3   Notwithstanding any law to the contrary, the obligor must be 
536.4   served with 14 days' notice in writing specifying the time and 
536.5   place of the hearing and the allegations against the obligor.  
536.6   The notice may be served personally or by mail.  If the public 
536.7   authority does not receive a request for a hearing within 30 
536.8   days of the date of the notice, and the obligor does not execute 
536.9   a written payment agreement regarding both current support and 
536.10  arrearages approved by the public authority within 90 days of 
536.11  the date of the notice, the public authority shall direct the 
536.12  commissioner of public safety to suspend the obligor's driver's 
536.13  license under paragraph (b). 
536.14     (d) At a hearing requested by the obligor under paragraph 
536.15  (c), and on finding that the obligor is in arrears in 
536.16  court-ordered child support or maintenance payments or both in 
536.17  an amount equal to or greater than three times the obligor's 
536.18  total monthly support and maintenance payments, the district 
536.19  court or child support magistrate shall order the commissioner 
536.20  of public safety to suspend the obligor's driver's license or 
536.21  operating privileges unless the court or child support 
536.22  magistrate determines that the obligor has executed and is in 
536.23  compliance with a written payment agreement regarding both 
536.24  current support and arrearages approved by the court, a child 
536.25  support magistrate, or the public authority. 
536.26     (e) An obligor whose driver's license or operating 
536.27  privileges are suspended may provide proof to the public 
536.28  authority responsible for child support enforcement that the 
536.29  obligor is in compliance with all written payment agreements 
536.30  regarding both current support and arrearages.  Within 15 days 
536.31  of the receipt of that proof, the public authority shall inform 
536.32  the commissioner of public safety that the obligor's driver's 
536.33  license or operating privileges should no longer be suspended. 
536.34     (f) On January 15, 1997, and every two years after that, 
536.35  the commissioner of human services shall submit a report to the 
536.36  legislature that identifies the following information relevant 
537.1   to the implementation of this section: 
537.2      (1) the number of child support obligors notified of an 
537.3   intent to suspend a driver's license; 
537.4      (2) the amount collected in payments from the child support 
537.5   obligors notified of an intent to suspend a driver's license; 
537.6      (3) the number of cases paid in full and payment agreements 
537.7   executed in response to notification of an intent to suspend a 
537.8   driver's license; 
537.9      (4) the number of cases in which there has been 
537.10  notification and no payments or payment agreements; 
537.11     (5) the number of driver's licenses suspended; and 
537.12     (6) the cost of implementation and operation of the 
537.13  requirements of this section. 
537.14     (g) In addition to the criteria established under this 
537.15  section for the suspension of an obligor's driver's license, a 
537.16  court, a child support magistrate, or the public authority may 
537.17  direct the commissioner of public safety to suspend the license 
537.18  of a party who has failed, after receiving notice, to comply 
537.19  with a subpoena relating to a paternity or child support 
537.20  proceeding.  Notice to an obligor of intent to suspend must be 
537.21  served by first class mail at the obligor's last known address.  
537.22  The notice must inform the obligor of the right to request a 
537.23  hearing.  If the obligor makes a written request within ten days 
537.24  of the date of the hearing, a hearing must be held.  At the 
537.25  hearing, the only issues to be considered are mistake of fact 
537.26  and whether the obligor received the subpoena. 
537.27     (h) The license of an obligor who fails to remain in 
537.28  compliance with an approved payment agreement may be 
537.29  suspended if the obligor misses one month's payment.  Notice to 
537.30  the obligor of an intent to suspend under this paragraph must be 
537.31  served by first class mail mailed to the obligor at the 
537.32  obligor's last known address and must include a notice of 
537.33  hearing.  This notice must inform the obligor that unless the 
537.34  delinquency on the payment agreement is paid in full within 30 
537.35  days of the date of notice or the obligor requests a hearing, 
537.36  the public authority will direct the department of public safety 
538.1   to suspend the obligor's license.  If the obligor does not pay 
538.2   the delinquency in full or request a hearing within 30 days of 
538.3   the date of notice, the public authority may direct the 
538.4   department of public safety to suspend the obligor's license.  
538.5   If the obligor requests a hearing to determine failure to comply 
538.6   with the payment agreement, the notice of hearing must be served 
538.7   upon mailed to the obligor at the obligor's last known address 
538.8   not less than ten days before the date of the hearing.  If the 
538.9   obligor appears at the hearing and the judge district court or 
538.10  child support magistrate determines that the obligor has failed 
538.11  to comply with an approved payment agreement, the judge district 
538.12  court or child support magistrate shall notify order the 
538.13  department of public safety to suspend the obligor's 
538.14  license under paragraph (c).  If the obligor fails to appear at 
538.15  the hearing, the public authority may notify direct the 
538.16  department of public safety to suspend the obligor's 
538.17  license under paragraph (c). 
538.18     Sec. 11.  Minnesota Statutes 2000, section 518.5513, 
538.19  subdivision 5, is amended to read: 
538.20     Subd. 5.  [ADMINISTRATIVE AUTHORITY.] (a) The public 
538.21  authority may take the following actions relating to 
538.22  establishment of paternity or to establishment, modification, or 
538.23  enforcement of support orders, without the necessity of 
538.24  obtaining an order from any judicial or administrative tribunal: 
538.25     (1) recognize and enforce orders of child support agencies 
538.26  of other states; 
538.27     (2) upon request for genetic testing by a child, parent, or 
538.28  any alleged parent, and using the procedure in paragraph (b), 
538.29  order the child, parent, or alleged parent to submit to blood or 
538.30  genetic testing for the purpose of establishing paternity; 
538.31     (3) subpoena financial or other information needed to 
538.32  establish, modify, or enforce a child support order and request 
538.33  sanctions sanction a party for failure to respond to a subpoena; 
538.34     (4) upon notice to the obligor, obligee, and the 
538.35  appropriate court, direct the obligor or other payor to change 
538.36  the payee to the central collections unit under sections 
539.1   518.5851 to 518.5853; 
539.2      (5) order income withholding of child support under section 
539.3   518.6111 and sanction an employer or payor of funds pursuant to 
539.4   section 393.07, subdivision 9a, for failing to comply with an 
539.5   income withholding notice; 
539.6      (6) secure assets to satisfy the debt or arrearage in cases 
539.7   in which there is a support debt or arrearage by: 
539.8      (i) intercepting or seizing periodic or lump sum payments 
539.9   from state or local agencies, including unemployment benefits, 
539.10  workers' compensation payments, judgments, settlements, 
539.11  lotteries, and other lump sum payments; 
539.12     (ii) attaching and seizing assets of the obligor held in 
539.13  financial institutions or public or private retirement funds; 
539.14  and 
539.15     (iii) imposing liens in accordance with section 548.091 
539.16  and, in appropriate cases, forcing the sale of property and the 
539.17  distribution of proceeds; 
539.18     (7) for the purpose of securing overdue support, increase 
539.19  the amount of the monthly support payments by an additional 
539.20  amount equal to 20 percent of the monthly support payment to 
539.21  include amounts for debts or arrearages; and 
539.22     (8) subpoena an employer or payor of funds to provide 
539.23  promptly information on the employment, compensation, and 
539.24  benefits of an individual employed by that employer as an 
539.25  employee or contractor, and to request sanctions sanction an 
539.26  employer or payor of funds pursuant to section 393.07, 
539.27  subdivision 9a, for failure to respond to the subpoena as 
539.28  provided by law. 
539.29     (b) A request for genetic testing by a child, parent, or 
539.30  alleged parent must be supported by a sworn statement by the 
539.31  person requesting genetic testing alleging paternity, which sets 
539.32  forth facts establishing a reasonable possibility of the 
539.33  requisite sexual contact between the parties, or denying 
539.34  paternity, and setting forth facts establishing a reasonable 
539.35  possibility of the nonexistence of sexual contact between the 
539.36  alleged parties.  The order for genetic tests may be served 
540.1   anywhere within the state and served outside the state in the 
540.2   same manner as prescribed by law for service of subpoenas issued 
540.3   by the district court of this state.  If the child, parent, or 
540.4   alleged parent fails to comply with the genetic testing order, 
540.5   the public authority may seek to enforce that order in district 
540.6   court through a motion to compel testing.  No results obtained 
540.7   through genetic testing done in response to an order issued 
540.8   under this section may be used in any criminal proceeding. 
540.9      (c) Subpoenas may be served anywhere within the state and 
540.10  served outside the state in the same manner as prescribed by law 
540.11  for service of process of subpoenas issued by the district court 
540.12  of this state.  When a subpoena under this subdivision is served 
540.13  on a third-party recordkeeper, written notice of the subpoena 
540.14  shall be mailed to the person who is the subject of the 
540.15  subpoenaed material at the person's last known address within 
540.16  three days of the day the subpoena is served.  This notice 
540.17  provision does not apply if there is reasonable cause to believe 
540.18  the giving of the notice may lead to interference with the 
540.19  production of the subpoenaed documents. 
540.20     (d) A person served with a subpoena may make a written 
540.21  objection to the public authority or court before the time 
540.22  specified in the subpoena for compliance.  The public authority 
540.23  or the court shall cancel or modify the subpoena, if 
540.24  appropriate.  The public authority shall pay the reasonable 
540.25  costs of producing the documents, if requested. 
540.26     (e) Subpoenas are enforceable in the same manner as 
540.27  subpoenas of the district court.  Upon motion of the county 
540.28  attorney, the court may issue an order directing the production 
540.29  of the records.  Failure to comply with the court order may 
540.30  subject the person who fails to comply to civil or criminal 
540.31  contempt of court. 
540.32     (f) The administrative actions under this subdivision are 
540.33  subject to due process safeguards, including requirements for 
540.34  notice, opportunity to contest the action, and opportunity to 
540.35  appeal the order to the judge, judicial officer, or child 
540.36  support magistrate. 
541.1      Sec. 12.  Minnesota Statutes 2000, section 518.575, 
541.2   subdivision 1, is amended to read: 
541.3      Subdivision 1.  [MAKING NAMES PUBLIC.] At least once each 
541.4   year, the commissioner of human services, in consultation with 
541.5   the attorney general, shall may publish a list of the names and 
541.6   other identifying information of no more than 25 persons who (1) 
541.7   are child support obligors, (2) are at least $10,000 in arrears, 
541.8   (3) are not in compliance with a written payment agreement 
541.9   regarding both current support and arrearages approved by the 
541.10  court, a child support magistrate, or the public authority, (4) 
541.11  cannot currently be located by the public authority for the 
541.12  purposes of enforcing a support order, and (5) have not made a 
541.13  support payment except tax intercept payments, in the preceding 
541.14  12 months. 
541.15     Identifying information may include the obligor's name, 
541.16  last known address, amount owed, date of birth, photograph, the 
541.17  number of children for whom support is owed, and any additional 
541.18  information about the obligor that would assist in identifying 
541.19  or locating the obligor.  The commissioner and attorney general 
541.20  may use posters, media presentations, electronic technology, and 
541.21  other means that the commissioner and attorney general determine 
541.22  are appropriate for dissemination of the information, including 
541.23  publication on the Internet.  The commissioner and attorney 
541.24  general may make any or all of the identifying information 
541.25  regarding these persons public.  Information regarding an 
541.26  obligor who meets the criteria in this subdivision will only be 
541.27  made public subsequent to that person's selection by the 
541.28  commissioner and attorney general. 
541.29     Before making public the name of the obligor, the 
541.30  department of human services shall send a notice to the 
541.31  obligor's last known address which states the department's 
541.32  intention to make public information on the obligor.  The notice 
541.33  must also provide an opportunity to have the obligor's name 
541.34  removed from the list by paying the arrearage or by entering 
541.35  into an agreement to pay the arrearage, or by providing 
541.36  information to the public authority that there is good cause not 
542.1   to make the information public.  The notice must include the 
542.2   final date when the payment or agreement can be accepted. 
542.3      The department of human services shall obtain the written 
542.4   consent of the obligee to make the name of the obligor public. 
542.5      Sec. 13.  Minnesota Statutes 2000, section 518.5851, is 
542.6   amended by adding a subdivision to read: 
542.7      Subd. 7.  [UNCLAIMED SUPPORT FUNDS.] "Unclaimed support 
542.8   funds" means any support payments collected by the public 
542.9   authority from the obligor, which have not been disbursed to the 
542.10  obligee or public authority. 
542.11     Sec. 14.  Minnesota Statutes 2000, section 518.5853, is 
542.12  amended by adding a subdivision to read: 
542.13     Subd. 12.  [UNCLAIMED SUPPORT FUNDS.] (a) If support 
542.14  payments have not been disbursed to an obligee because the 
542.15  obligee is not located, the public authority shall continue 
542.16  locate efforts for one year from the date the public authority 
542.17  determines that the obligee is not located. 
542.18     (b) If the public authority is unable to locate the obligee 
542.19  after one year, the public authority shall mail a written notice 
542.20  to the obligee at the obligee's last known address.  The notice 
542.21  shall give the obligee 60 days to contact the public authority.  
542.22  If the obligee does not contact the public authority within 60 
542.23  days from the date of notice, the public authority shall: 
542.24     (1) close the nonpublic assistance portion of the case; 
542.25     (2) disburse unclaimed support funds to pay public 
542.26  assistance arrears.  If public assistance arrears remain after 
542.27  disbursing the unclaimed support funds, the public authority may 
542.28  continue enforcement and collection of child support until all 
542.29  public assistance arrears have been paid.  If there are no 
542.30  public assistance arrears, or unclaimed support funds remain 
542.31  after paying public assistance arrears, remaining unclaimed 
542.32  support funds shall be returned to the obligor; and 
542.33     (3) mail, when all public assistance arrears have been paid 
542.34  the public authority, to the obligor at the obligor's last known 
542.35  address a written notice of termination of income withholding 
542.36  and case closure due to the public authority's inability to 
543.1   locate the obligee.  The notice must indicate that the obligor's 
543.2   support or maintenance obligation will remain in effect until 
543.3   further order of the court and must inform the obligor that the 
543.4   obligor can contact the public authority for assistance to 
543.5   modify the order.  A copy of the form prepared by the state 
543.6   court administrator's office under section 518.64, subdivision 
543.7   5, must be included with the notice.  
543.8      (c) If the obligor is not located when attempting to return 
543.9   unclaimed support funds, the public authority shall continue 
543.10  locate efforts for one year from the date the public authority 
543.11  determines that the obligor is not located.  If the public 
543.12  authority is unable to locate the obligor after one year, the 
543.13  funds shall be treated as unclaimed property according to 
543.14  federal law and chapter 345. 
543.15     Sec. 15.  Minnesota Statutes 2000, section 518.6111, 
543.16  subdivision 5, is amended to read: 
543.17     Subd. 5.  [PAYOR OF FUNDS RESPONSIBILITIES.] (a) An order 
543.18  for or notice of withholding is binding on a payor of funds upon 
543.19  receipt.  Withholding must begin no later than the first pay 
543.20  period that occurs after 14 days following the date of receipt 
543.21  of the order for or notice of withholding.  In the case of a 
543.22  financial institution, preauthorized transfers must occur in 
543.23  accordance with a court-ordered payment schedule. 
543.24     (b) A payor of funds shall withhold from the income payable 
543.25  to the obligor the amount specified in the order or notice of 
543.26  withholding and amounts specified under subdivisions 6 and 9 and 
543.27  shall remit the amounts withheld to the public authority within 
543.28  seven business days of the date the obligor is paid the 
543.29  remainder of the income.  The payor of funds shall include with 
543.30  the remittance the social security number of the obligor, the 
543.31  case type indicator as provided by the public authority and the 
543.32  date the obligor is paid the remainder of the income.  The 
543.33  obligor is considered to have paid the amount withheld as of the 
543.34  date the obligor received the remainder of the income.  A payor 
543.35  of funds may combine all amounts withheld from one pay period 
543.36  into one payment to each public authority, but shall separately 
544.1   identify each obligor making payment. 
544.2      (c) A payor of funds shall not discharge, or refuse to 
544.3   hire, or otherwise discipline an employee as a result of wage or 
544.4   salary withholding authorized by this section.  A payor of funds 
544.5   shall be liable to the obligee for any amounts required to be 
544.6   withheld.  A payor of funds that fails to withhold or transfer 
544.7   funds in accordance with this section is also liable to the 
544.8   obligee for interest on the funds at the rate applicable to 
544.9   judgments under section 549.09, computed from the date the funds 
544.10  were required to be withheld or transferred.  A payor of funds 
544.11  is liable for reasonable attorney fees of the obligee or public 
544.12  authority incurred in enforcing the liability under this 
544.13  paragraph.  A payor of funds that has failed to comply with the 
544.14  requirements of this section is subject to contempt sanctions 
544.15  under section 518.615.  If the payor of funds is an employer or 
544.16  independent contractor and violates this subdivision, a court 
544.17  may award the obligor twice the wages lost as a result of this 
544.18  violation.  If a court finds a payor of funds violated this 
544.19  subdivision, the court shall impose a civil fine of not less 
544.20  than $500.  The liabilities in this paragraph apply to 
544.21  intentional noncompliance with this section. 
544.22     (d) If a single employee is subject to multiple withholding 
544.23  orders or multiple notices of withholding for the support of 
544.24  more than one child, the payor of funds shall comply with all of 
544.25  the orders or notices to the extent that the total amount 
544.26  withheld from the obligor's income does not exceed the limits 
544.27  imposed under the Consumer Credit Protection Act, United States 
544.28  Code, title 15, section 1673(b), giving priority to amounts 
544.29  designated in each order or notice as current support as follows:
544.30     (1) if the total of the amounts designated in the orders 
544.31  for or notices of withholding as current support exceeds the 
544.32  amount available for income withholding, the payor of funds 
544.33  shall allocate to each order or notice an amount for current 
544.34  support equal to the amount designated in that order or notice 
544.35  as current support, divided by the total of the amounts 
544.36  designated in the orders or notices as current support, 
545.1   multiplied by the amount of the income available for income 
545.2   withholding; and 
545.3      (2) if the total of the amounts designated in the orders 
545.4   for or notices of withholding as current support does not exceed 
545.5   the amount available for income withholding, the payor of funds 
545.6   shall pay the amounts designated as current support, and shall 
545.7   allocate to each order or notice an amount for past due support, 
545.8   equal to the amount designated in that order or notice as past 
545.9   due support, divided by the total of the amounts designated in 
545.10  the orders or notices as past due support, multiplied by the 
545.11  amount of income remaining available for income withholding 
545.12  after the payment of current support. 
545.13     (e) When an order for or notice of withholding is in effect 
545.14  and the obligor's employment is terminated, the obligor and the 
545.15  payor of funds shall notify the public authority of the 
545.16  termination within ten days of the termination date.  The 
545.17  termination notice shall include the obligor's home address and 
545.18  the name and address of the obligor's new payor of funds, if 
545.19  known. 
545.20     (f) A payor of funds may deduct one dollar from the 
545.21  obligor's remaining salary for each payment made pursuant to an 
545.22  order for or notice of withholding under this section to cover 
545.23  the expenses of withholding. 
545.24     Sec. 16.  Minnesota Statutes 2000, section 518.6195, is 
545.25  amended to read: 
545.26     518.6195 [COLLECTION; ARREARS ONLY.] 
545.27     (a) Remedies available for the collection and enforcement 
545.28  of support in this chapter and chapters 256, 257, and 518C also 
545.29  apply to cases in which the child or children for whom support 
545.30  is owed are emancipated and the obligor owes past support or has 
545.31  an accumulated arrearage as of the date of the youngest child's 
545.32  emancipation.  Child support arrearages under this section 
545.33  include arrearages for child support, medical support, child 
545.34  care, pregnancy and birth expenses, and unreimbursed medical 
545.35  expenses as defined in section 518.171. 
545.36     (b) This section applies retroactively to any support 
546.1   arrearage that accrued on or before the date of enactment and to 
546.2   all arrearages accruing after the date of enactment. 
546.3      (c) Past support or pregnancy and confinement expenses 
546.4   ordered for which the obligor has specific court ordered terms 
546.5   for repayment may not be enforced using drivers' and 
546.6   occupational or professional license suspension, credit bureau 
546.7   reporting, and additional income withholding under section 
546.8   518.6111, subdivision 10, paragraph (a), unless the obligor 
546.9   fails to comply with the terms of the court order for repayment. 
546.10     (d) If an arrearage exists at the time a support order 
546.11  would otherwise terminate and section 518.6111, subdivision 10, 
546.12  paragraph (c), does not apply to this section, the arrearage 
546.13  shall be repaid in an amount equal to the current support order 
546.14  plus an additional 20 percent of the monthly child support 
546.15  obligation until all arrears have been paid in full, absent a 
546.16  court order to the contrary. 
546.17     (e) If an arrearage exists according to a support order 
546.18  which fails to establish a monthly support obligation in a 
546.19  specific dollar amount, the public authority, if it provides 
546.20  child support services, or the obligee, may establish a payment 
546.21  agreement which shall equal what the obligor would pay for 
546.22  current support after application of section 518.551, plus an 
546.23  additional 20 percent of the current support obligation, until 
546.24  all arrears have been paid in full.  If the obligor fails to 
546.25  enter into or comply with a payment agreement, the public 
546.26  authority, if it provides child support services, or the 
546.27  obligee, may move the district court or child support 
546.28  magistrate, if section 484.702 applies, for an order 
546.29  establishing repayment terms.  It shall be presumed that the 
546.30  obligor is able to repay arrears at a rate which at a minimum 
546.31  equals a current monthly obligation after application of section 
546.32  518.551, plus an additional 20 percent of the current monthly 
546.33  obligation. 
546.34     Sec. 17.  Minnesota Statutes 2000, section 518.64, 
546.35  subdivision 2, is amended to read: 
546.36     Subd. 2.  [MODIFICATION.] (a) The terms of an order 
547.1   respecting maintenance or support may be modified upon a showing 
547.2   of one or more of the following:  (1) substantially increased or 
547.3   decreased earnings of a party; (2) substantially increased or 
547.4   decreased need of a party or the child or children that are the 
547.5   subject of these proceedings; (3) receipt of assistance under 
547.6   the AFDC program formerly codified under sections 256.72 to 
547.7   256.87 or 256B.01 to 256B.40, or chapter 256J or 256K; (4) a 
547.8   change in the cost of living for either party as measured by the 
547.9   federal bureau of statistics, any of which makes the terms 
547.10  unreasonable and unfair; (5) extraordinary medical expenses of 
547.11  the child not provided for under section 518.171; or (6) the 
547.12  addition of work-related or education-related child care 
547.13  expenses of the obligee or a substantial increase or decrease in 
547.14  existing work-related or education-related child care expenses.  
547.15     On a motion to modify support, the needs of any child the 
547.16  obligor has after the entry of the support order that is the 
547.17  subject of a modification motion shall be considered as provided 
547.18  by section 518.551, subdivision 5f. 
547.19     (b) It is presumed that there has been a substantial change 
547.20  in circumstances under paragraph (a) and the terms of a current 
547.21  support order shall be rebuttably presumed to be unreasonable 
547.22  and unfair if: 
547.23     (1) the application of the child support guidelines in 
547.24  section 518.551, subdivision 5, to the current circumstances of 
547.25  the parties results in a calculated court order that is at least 
547.26  20 percent and at least $50 per month higher or lower than the 
547.27  current support order; 
547.28     (2) the medical support provisions of the order established 
547.29  under section 518.171 are not enforceable by the public 
547.30  authority or the custodial parent; 
547.31     (3) health coverage ordered under section 518.171 is not 
547.32  available to the child for whom the order is established by the 
547.33  parent ordered to provide; or 
547.34     (4) the existing support obligation is in the form of a 
547.35  statement of percentage and not a specific dollar amount.  
547.36     (c) On a motion for modification of maintenance, including 
548.1   a motion for the extension of the duration of a maintenance 
548.2   award, the court shall apply, in addition to all other relevant 
548.3   factors, the factors for an award of maintenance under section 
548.4   518.552 that exist at the time of the motion.  On a motion for 
548.5   modification of support, the court:  
548.6      (1) shall apply section 518.551, subdivision 5, and shall 
548.7   not consider the financial circumstances of each party's spouse, 
548.8   if any; and 
548.9      (2) shall not consider compensation received by a party for 
548.10  employment in excess of a 40-hour work week, provided that the 
548.11  party demonstrates, and the court finds, that: 
548.12     (i) the excess employment began after entry of the existing 
548.13  support order; 
548.14     (ii) the excess employment is voluntary and not a condition 
548.15  of employment; 
548.16     (iii) the excess employment is in the nature of additional, 
548.17  part-time employment, or overtime employment compensable by the 
548.18  hour or fractions of an hour; 
548.19     (iv) the party's compensation structure has not been 
548.20  changed for the purpose of affecting a support or maintenance 
548.21  obligation; 
548.22     (v) in the case of an obligor, current child support 
548.23  payments are at least equal to the guidelines amount based on 
548.24  income not excluded under this clause; and 
548.25     (vi) in the case of an obligor who is in arrears in child 
548.26  support payments to the obligee, any net income from excess 
548.27  employment must be used to pay the arrearages until the 
548.28  arrearages are paid in full. 
548.29     (d) A modification of support or maintenance, including 
548.30  interest that accrued pursuant to section 548.091, may be made 
548.31  retroactive only with respect to any period during which the 
548.32  petitioning party has pending a motion for modification but only 
548.33  from the date of service of notice of the motion on the 
548.34  responding party and on the public authority if public 
548.35  assistance is being furnished or the county attorney is the 
548.36  attorney of record.  However, modification may be applied to an 
549.1   earlier period if the court makes express findings that:  
549.2      (1) the party seeking modification was precluded from 
549.3   serving a motion by reason of a significant physical or mental 
549.4   disability, a material misrepresentation of another party, or 
549.5   fraud upon the court and that the party seeking modification, 
549.6   when no longer precluded, promptly served a motion; 
549.7      (2) the party seeking modification was a recipient of 
549.8   federal Supplemental Security Income (SSI), Title II Older 
549.9   Americans, Survivor's Disability Insurance (OASDI), other 
549.10  disability benefits, or public assistance based upon need during 
549.11  the period for which retroactive modification is sought; or 
549.12     (3) the order for which the party seeks amendment was 
549.13  entered by default, the party shows good cause for not 
549.14  appearing, and the record contains no factual evidence, or 
549.15  clearly erroneous evidence regarding the individual obligor's 
549.16  ability to pay.; or 
549.17     (4) the party seeking modification was institutionalized or 
549.18  incarcerated for an offense other than nonsupport of a child 
549.19  during the period for which retroactive modification is sought 
549.20  and lacked the financial ability to pay the support ordered 
549.21  during that time period.  In determining whether to allow the 
549.22  retroactive modification, the court shall consider whether and 
549.23  when a request was made to the public authority for support 
549.24  modification.  
549.25  The court may provide that a reduction in the amount allocated 
549.26  for child care expenses based on a substantial decrease in the 
549.27  expenses is effective as of the date the expenses decreased. 
549.28     (e) Except for an award of the right of occupancy of the 
549.29  homestead, provided in section 518.63, all divisions of real and 
549.30  personal property provided by section 518.58 shall be final, and 
549.31  may be revoked or modified only where the court finds the 
549.32  existence of conditions that justify reopening a judgment under 
549.33  the laws of this state, including motions under section 518.145, 
549.34  subdivision 2.  The court may impose a lien or charge on the 
549.35  divided property at any time while the property, or subsequently 
549.36  acquired property, is owned by the parties or either of them, 
550.1   for the payment of maintenance or support money, or may 
550.2   sequester the property as is provided by section 518.24. 
550.3      (f) The court need not hold an evidentiary hearing on a 
550.4   motion for modification of maintenance or support. 
550.5      (g) Section 518.14 shall govern the award of attorney fees 
550.6   for motions brought under this subdivision. 
550.7      Sec. 18.  Minnesota Statutes 2000, section 518.641, 
550.8   subdivision 1, is amended to read: 
550.9      Subdivision 1.  [REQUIREMENT.] (a) An order for 
550.10  establishing, modifying, or enforcing maintenance or child 
550.11  support shall provide for a biennial adjustment in the amount to 
550.12  be paid based on a change in the cost of living.  An order that 
550.13  provides for a cost-of-living adjustment shall specify the 
550.14  cost-of-living index to be applied and the date on which the 
550.15  cost-of-living adjustment shall become effective.  The court may 
550.16  use the consumer price index for all urban consumers, 
550.17  Minneapolis-St. Paul (CPI-U), the consumer price index for wage 
550.18  earners and clerical, Minneapolis-St. Paul (CPI-W), or another 
550.19  cost-of-living index published by the department of labor which 
550.20  it specifically finds is more appropriate.  Cost-of-living 
550.21  increases under this section shall be compounded.  The court may 
550.22  also increase the amount by more than the cost-of-living 
550.23  adjustment by agreement of the parties or by making further 
550.24  findings.  
550.25     (b) The adjustment becomes effective on the first of May of 
550.26  the year in which it is made, for cases in which payment is made 
550.27  to the public authority.  For cases in which payment is not made 
550.28  to the public authority, application for an adjustment may be 
550.29  made in any month but no application for an adjustment may be 
550.30  made sooner than two years after the date of the dissolution 
550.31  decree.  A court may waive the requirement of the cost-of-living 
550.32  clause if it expressly finds that the obligor's occupation or 
550.33  income, or both, does not provide for cost-of-living adjustment 
550.34  or that the order for maintenance or child support has a 
550.35  provision such as a step increase that has the effect of a 
550.36  cost-of-living clause.  The court may waive a cost-of-living 
551.1   adjustment in a maintenance order if the parties so agree in 
551.2   writing.  The commissioner of human services may promulgate 
551.3   rules for child support adjustments under this section in 
551.4   accordance with the rulemaking provisions of chapter 14.  Notice 
551.5   of this statute must comply with section 518.68, subdivision 2. 
551.6      Sec. 19.  Minnesota Statutes 2000, section 518.641, 
551.7   subdivision 2, is amended to read: 
551.8      Subd. 2.  [CONDITIONS NOTICE.] No adjustment under this 
551.9   section may be made unless the order provides for it and until 
551.10  the following conditions are met:  
551.11     (a) the obligee serves notice of the application for 
551.12  adjustment by mail on the obligor at the obligor's last known 
551.13  address at least 20 days before the effective date of the 
551.14  adjustment; 
551.15     (b) the notice to the obligor informs the obligor of the 
551.16  date on which the adjustment in payments will become effective; 
551.17     (c) after receipt of notice and before the effective day of 
551.18  the adjustment, the obligor fails to request a hearing on the 
551.19  issue of whether the adjustment should take effect, and ex 
551.20  parte, to stay imposition of the adjustment pending outcome of 
551.21  the hearing; or 
551.22     (d) the public authority the public authority or the 
551.23  obligee, if the obligee is requesting the cost-of-living 
551.24  adjustment, sends notice of its application for the intended 
551.25  adjustment to the obligor at the obligor's last known address at 
551.26  least 20 days before the effective date of the adjustment, and. 
551.27  The notice informs shall inform the obligor of the date on which 
551.28  the adjustment will become effective and the procedures for 
551.29  contesting the adjustment according to section 484.702. 
551.30     Sec. 20.  Minnesota Statutes 2000, section 518.641, is 
551.31  amended by adding a subdivision to read: 
551.32     Subd. 2a.  [PROCEDURES FOR CONTESTING ADJUSTMENT.] (a) To 
551.33  contest cost-of-living adjustments initiated by the public 
551.34  authority or an obligee who has applied for or is receiving 
551.35  child support and maintenance collection services from the 
551.36  public authority, other than income withholding only services, 
552.1   the obligor, before the effective date of the adjustment, must: 
552.2      (1) file a motion contesting the cost-of-living adjustment 
552.3   with the court administrator; and 
552.4      (2) serve the motion by first-class mail on the public 
552.5   authority and the obligee. 
552.6   The hearing shall take place in the expedited child support 
552.7   process as governed by section 484.702. 
552.8      (b) To contest cost-of-living adjustments initiated by an 
552.9   obligee who is not receiving child support and maintenance 
552.10  collection services from the public authority, or for an obligee 
552.11  who receives income withholding only services from the public 
552.12  authority, the obligor must, before the effective date of the 
552.13  adjustment: 
552.14     (1) file a motion contesting the cost-of-living adjustment 
552.15  with the court administrator; and 
552.16     (2) serve the motion by first-class mail on the obligee. 
552.17  The hearing shall take place in district court. 
552.18     (c) Upon receipt of a motion contesting the cost-of-living 
552.19  adjustment, the cost-of-living adjustment shall be stayed 
552.20  pending further order of the court. 
552.21     (d) The court administrator shall make available pro se 
552.22  motion forms for contesting a cost-of-living adjustment under 
552.23  this subdivision. 
552.24     Sec. 21.  Minnesota Statutes 2000, section 518.641, 
552.25  subdivision 3, is amended to read: 
552.26     Subd. 3.  [RESULT OF HEARING.] If, at a hearing pursuant to 
552.27  this section, the obligor establishes an insufficient cost of 
552.28  living or other increase in income that prevents fulfillment of 
552.29  the adjusted maintenance or child support obligation, the 
552.30  court or child support magistrate may direct that all or part of 
552.31  the adjustment not take effect.  If, at the hearing, the obligor 
552.32  does not establish this insufficient increase in income, the 
552.33  adjustment shall take effect as of the date it would have become 
552.34  effective had no hearing been requested. 
552.35     Sec. 22.  Minnesota Statutes 2000, section 548.091, 
552.36  subdivision 1a, is amended to read: 
553.1      Subd. 1a.  [CHILD SUPPORT JUDGMENT BY OPERATION OF LAW.] 
553.2   (a) Any payment or installment of support required by a judgment 
553.3   or decree of dissolution or legal separation, determination of 
553.4   parentage, an order under chapter 518C, an order under section 
553.5   256.87, or an order under section 260B.331 or 260C.331, that is 
553.6   not paid or withheld from the obligor's income as required under 
553.7   section 518.6111, or which is ordered as child support by 
553.8   judgment, decree, or order by a court in any other state, is a 
553.9   judgment by operation of law on and after the date it is due, is 
553.10  entitled to full faith and credit in this state and any other 
553.11  state, and shall be entered and docketed by the court 
553.12  administrator on the filing of affidavits as provided in 
553.13  subdivision 2a.  Except as otherwise provided by paragraph (b), 
553.14  interest accrues from the date the unpaid amount due is greater 
553.15  than the current support due at the annual rate provided in 
553.16  section 549.09, subdivision 1, plus two percent, not to exceed 
553.17  an annual rate of 18 percent.  A payment or installment of 
553.18  support that becomes a judgment by operation of law between the 
553.19  date on which a party served notice of a motion for modification 
553.20  under section 518.64, subdivision 2, and the date of the court's 
553.21  order on modification may be modified under that subdivision. 
553.22     (b) Notwithstanding the provisions of section 549.09, upon 
553.23  motion to the court and upon proof by the obligor of 36 
553.24  consecutive months of complete and timely payments of both 
553.25  current support and court-ordered paybacks of a child support 
553.26  debt or arrearage, the court may order interest on the remaining 
553.27  debt or arrearage to stop accruing.  Timely payments are those 
553.28  made in the month in which they are due.  If, after that time, 
553.29  the obligor fails to make complete and timely payments of both 
553.30  current support and court-ordered paybacks of child support debt 
553.31  or arrearage, the public authority or the obligee may move the 
553.32  court for the reinstatement of interest as of the month in which 
553.33  the obligor ceased making complete and timely payments. 
553.34     The court shall provide copies of all orders issued under 
553.35  this section to the public authority.  The commissioner of human 
553.36  services shall prepare and make available to the court and the 
554.1   parties forms to be submitted by the parties in support of a 
554.2   motion under this paragraph. 
554.3      (c) Notwithstanding the provisions of section 549.09, upon 
554.4   motion to the court, the court may order interest on a child 
554.5   support debt to stop accruing where the court finds that the 
554.6   obligor is: 
554.7      (1) unable to pay support because of a significant physical 
554.8   or mental disability; or 
554.9      (2) a recipient of Supplemental Security Income (SSI), 
554.10  Title II Older Americans Survivor's Disability Insurance 
554.11  (OASDI), other disability benefits, or public assistance based 
554.12  upon need; or 
554.13     (3) institutionalized or incarcerated for at least 30 days 
554.14  for an offense other than nonsupport of the child or children 
554.15  involved, and is otherwise financially unable to pay support. 
554.16     Sec. 23.  [REPEALER.] 
554.17     Minnesota Statutes 2000, section 518.641, subdivisions 4 
554.18  and 5, are repealed. 
554.19                             ARTICLE 13 
554.20               DEPARTMENT OF HUMAN SERVICES LICENSING 
554.21     Section 1.  Minnesota Statutes 2000, section 13.46, 
554.22  subdivision 4, is amended to read: 
554.23     Subd. 4.  [LICENSING DATA.] (a) As used in this subdivision:
554.24     (1) "licensing data" means all data collected, maintained, 
554.25  used, or disseminated by the welfare system pertaining to 
554.26  persons licensed or registered or who apply for licensure or 
554.27  registration or who formerly were licensed or registered under 
554.28  the authority of the commissioner of human services; 
554.29     (2) "client" means a person who is receiving services from 
554.30  a licensee or from an applicant for licensure; and 
554.31     (3) "personal and personal financial data" means social 
554.32  security numbers, identity of and letters of reference, 
554.33  insurance information, reports from the bureau of criminal 
554.34  apprehension, health examination reports, and social/home 
554.35  studies. 
554.36     (b)(1) Except as provided in paragraph (c), the following 
555.1   data on current and former licensees are public:  name, address, 
555.2   telephone number of licensees, licensed capacity, type of client 
555.3   preferred, variances granted, type of dwelling, name and 
555.4   relationship of other family members, previous license history, 
555.5   class of license, and the existence and status of complaints.  
555.6   When disciplinary action has been taken against a licensee or 
555.7   the complaint is resolved, the following data are public:  the 
555.8   substance of the complaint, the findings of the investigation of 
555.9   the complaint, the record of informal resolution of a licensing 
555.10  violation, orders of hearing, findings of fact, conclusions of 
555.11  law, and specifications of the final disciplinary action 
555.12  contained in the record of disciplinary action.  
555.13     (2) The following data on persons subject to 
555.14  disqualification under section 245A.04 in connection with a 
555.15  license to provide family day care for children, child care 
555.16  center services, foster care for children in the provider's 
555.17  home, or foster care or day care services for adults in the 
555.18  provider's home, are public:  the nature of any disqualification 
555.19  set aside under section 245A.04, subdivision 3b, and the reasons 
555.20  for setting aside the disqualification; and the reasons for 
555.21  granting any variance under section 245A.04, subdivision 9. 
555.22     (3) When maltreatment is substantiated under section 
555.23  626.556 or 626.557 and the victim and the substantiated 
555.24  perpetrator are affiliated with a program licensed under chapter 
555.25  245A, the commissioner of human services, local social services 
555.26  agency, or county welfare agency may inform the license holder 
555.27  where the maltreatment occurred of the identity of the 
555.28  substantiated perpetrator and the victim. 
555.29     (c) The following are private data on individuals under 
555.30  section 13.02, subdivision 12, or nonpublic data under section 
555.31  13.02, subdivision 9:  personal and personal financial data on 
555.32  family day care program and family foster care program 
555.33  applicants and licensees and their family members who provide 
555.34  services under the license. 
555.35     (d) The following are private data on individuals:  the 
555.36  identity of persons who have made reports concerning licensees 
556.1   or applicants that appear in inactive investigative data, and 
556.2   the records of clients or employees of the licensee or applicant 
556.3   for licensure whose records are received by the licensing agency 
556.4   for purposes of review or in anticipation of a contested 
556.5   matter.  The names of reporters under sections 626.556 and 
556.6   626.557 may be disclosed only as provided in section 626.556, 
556.7   subdivision 11, or 626.557, subdivision 12b. 
556.8      (e) Data classified as private, confidential, nonpublic, or 
556.9   protected nonpublic under this subdivision become public data if 
556.10  submitted to a court or administrative law judge as part of a 
556.11  disciplinary proceeding in which there is a public hearing 
556.12  concerning the disciplinary action. 
556.13     (f) Data generated in the course of licensing 
556.14  investigations that relate to an alleged violation of law are 
556.15  investigative data under subdivision 3. 
556.16     (g) Data that are not public data collected, maintained, 
556.17  used, or disseminated under this subdivision that relate to or 
556.18  are derived from a report as defined in section 626.556, 
556.19  subdivision 2, are subject to the destruction provisions of 
556.20  section 626.556, subdivision 11.  
556.21     (h) Upon request, not public data collected, maintained, 
556.22  used, or disseminated under this subdivision that relate to or 
556.23  are derived from a report of substantiated maltreatment as 
556.24  defined in section 626.556 or 626.557 may be exchanged with the 
556.25  department of health for purposes of completing background 
556.26  studies pursuant to section 144.057. 
556.27     (i) Data on individuals collected according to licensing 
556.28  activities under chapter 245A, and data on individuals collected 
556.29  by the commissioner of human services according to maltreatment 
556.30  investigations under sections 626.556 and 626.557, may be shared 
556.31  with the department of human rights, the department of health, 
556.32  the department of corrections, the ombudsman for mental health 
556.33  and retardation, and the individual's professional regulatory 
556.34  board when there is reason to believe that laws or standards 
556.35  under the jurisdiction of those agencies may have been violated. 
556.36     (j) In addition to the notice of determinations required 
557.1   under section 626.556, subdivision 10f, if the commissioner or 
557.2   the local social services agency has determined that an 
557.3   individual is a substantiated perpetrator of maltreatment of a 
557.4   child based on sexual abuse, as defined in section 626.556, 
557.5   subdivision 2, and the commissioner or local social services 
557.6   agency knows that the individual is a person responsible for a 
557.7   child's care in another facility, the commissioner or local 
557.8   social services agency shall notify the head of that facility of 
557.9   this determination.  The notification must include an 
557.10  explanation of the individual's available appeal rights and the 
557.11  status of any appeal.  If a notice is given under this 
557.12  paragraph, the government entity making the notification shall 
557.13  provide a copy of the notice to the individual who is the 
557.14  subject of the notice. 
557.15     Sec. 2.  Minnesota Statutes 2000, section 144.057, 
557.16  subdivision 3, is amended to read: 
557.17     Subd. 3.  [RECONSIDERATIONS.] The commissioner of health 
557.18  shall review and decide reconsideration requests, including the 
557.19  granting of variances, in accordance with the procedures and 
557.20  criteria contained in chapter 245A and Minnesota Rules, parts 
557.21  9543.3000 to 9543.3090.  The commissioner's decision shall be 
557.22  provided to the individual and to the department of human 
557.23  services.  Except as provided under section 245A.04, 
557.24  subdivisions 3b, paragraphs (e) and (f); and 3c, paragraph (a), 
557.25  the commissioner's decision to grant or deny a reconsideration 
557.26  of disqualification is the final administrative agency action. 
557.27     Sec. 3.  Minnesota Statutes 2000, section 214.104, is 
557.28  amended to read: 
557.29     214.104 [HEALTH-RELATED LICENSING BOARDS; DETERMINATIONS 
557.30  REGARDING DISQUALIFICATIONS FOR MALTREATMENT.] 
557.31     (a) A health-related licensing board shall make 
557.32  determinations as to whether licensees regulated persons who are 
557.33  under the board's jurisdiction should be disqualified under 
557.34  section 245A.04, subdivision 3d, from positions allowing direct 
557.35  contact with persons receiving services the subject of 
557.36  disciplinary or corrective action because of substantiated 
558.1   maltreatment under section 626.556 or 626.557.  A determination 
558.2   under this section may be done as part of an investigation under 
558.3   section 214.103.  The board shall make a determination within 90 
558.4   days of upon receipt, and after the review, of an investigation 
558.5   memorandum or other notice of substantiated maltreatment under 
558.6   section 626.556 or 626.557, or of a notice from the commissioner 
558.7   of human services that a background study of a licensee 
558.8   regulated person shows substantiated maltreatment.  The board 
558.9   shall also make a determination under this section upon 
558.10  consideration of the licensure of an individual who was subject 
558.11  to disqualification before licensure because of substantiated 
558.12  maltreatment. 
558.13     (b) In making a determination under this section, the board 
558.14  shall consider the nature and extent of any injury or harm 
558.15  resulting from the conduct that would constitute grounds for 
558.16  disqualification, the seriousness of the misconduct, the extent 
558.17  that disqualification is necessary to protect persons receiving 
558.18  services or the public, and other factors specified in section 
558.19  245A.04, subdivision 3b, paragraph (b). 
558.20     (c) The board shall determine the duration and extent of 
558.21  the disqualification or may establish conditions under which the 
558.22  licensee may hold a position allowing direct contact with 
558.23  persons receiving services or in a licensed facility.  
558.24     (b) Upon completion of its review of a report of 
558.25  substantiated maltreatment, the board shall notify the 
558.26  commissioner of human services and the lead agency that 
558.27  conducted an investigation under section 626.556 or 626.557, as 
558.28  applicable, of its determination.  The board shall notify the 
558.29  commissioner of human services if, following a review of the 
558.30  report of substantiated maltreatment, the board determines that 
558.31  it does not have jurisdiction in the matter and the commissioner 
558.32  shall make the appropriate disqualification decision regarding 
558.33  the regulated person as otherwise provided in chapter 245A.  The 
558.34  board shall also notify the commissioner of health or the 
558.35  commissioner of human services immediately upon receipt of 
558.36  knowledge of a facility or program allowing a regulated person 
559.1   to provide direct contact services at the facility or program 
559.2   while not complying with requirements placed on the regulated 
559.3   person. 
559.4      (c) In addition to any other remedy provided by law, the 
559.5   board may, through its designated board member, temporarily 
559.6   suspend the license of a licensee; deny a credential to an 
559.7   applicant; or require the regulated person to be continuously 
559.8   supervised, if the board finds there is probable cause to 
559.9   believe the regulated person referred to the board according to 
559.10  paragraph (a) poses an immediate risk of harm to vulnerable 
559.11  persons.  The board shall consider all relevant information 
559.12  available, which may include but is not limited to: 
559.13     (1) the extent the action is needed to protect persons 
559.14  receiving services or the public; 
559.15     (2) the recency of the maltreatment; 
559.16     (3) the number of incidents of maltreatment; 
559.17     (4) the intrusiveness or violence of the maltreatment; and 
559.18     (5) the vulnerability of the victim of maltreatment.  
559.19  The action shall take effect upon written notice to the 
559.20  regulated person, served by certified mail, specifying the 
559.21  statute violated.  The board shall notify the commissioner of 
559.22  health or the commissioner of human services of the suspension 
559.23  or denial of a credential.  The action shall remain in effect 
559.24  until the board issues a temporary stay or a final order in the 
559.25  matter after a hearing or upon agreement between the board and 
559.26  the regulated person.  At the time the board issues the notice, 
559.27  the regulated person shall inform the board of all settings in 
559.28  which the regulated person is employed or practices.  The board 
559.29  shall inform all known employment and practice settings of the 
559.30  board action and schedule a disciplinary hearing to be held 
559.31  under chapter 14.  The board shall provide the regulated person 
559.32  with at least 30 days' notice of the hearing, unless the parties 
559.33  agree to a hearing date that provides less than 30 days' notice, 
559.34  and shall schedule the hearing to begin no later than 90 days 
559.35  after issuance of the notice of hearing. 
559.36     Sec. 4.  Minnesota Statutes 2000, section 245A.03, 
560.1   subdivision 2b, is amended to read: 
560.2      Subd. 2b.  [EXCEPTION.] The provision in subdivision 2, 
560.3   clause (2), does not apply to: 
560.4      (1) a child care provider who as an applicant for licensure 
560.5   or as a license holder has received a license denial under 
560.6   section 245A.05, a fine conditional license under section 
560.7   245A.06, or a sanction under section 245A.07 from the 
560.8   commissioner that has not been reversed on appeal; or 
560.9      (2) a child care provider, or a child care provider who has 
560.10  a household member who, as a result of a licensing process, has 
560.11  a disqualification under this chapter that has not been set 
560.12  aside by the commissioner. 
560.13     Sec. 5.  Minnesota Statutes 2000, section 245A.04, 
560.14  subdivision 3, is amended to read: 
560.15     Subd. 3.  [BACKGROUND STUDY OF THE APPLICANT; DEFINITIONS.] 
560.16  (a) Before the commissioner issues a license, the commissioner 
560.17  shall conduct a study of the individuals specified in paragraph 
560.18  (c) (d), clauses (1) to (5), according to rules of the 
560.19  commissioner. 
560.20     Beginning January 1, 1997, the commissioner shall also 
560.21  conduct a study of employees providing direct contact services 
560.22  for nonlicensed personal care provider organizations described 
560.23  in paragraph (c) (d), clause (5). 
560.24     The commissioner shall recover the cost of these background 
560.25  studies through a fee of no more than $12 per study charged to 
560.26  the personal care provider organization.  
560.27     Beginning August 1, 1997, the commissioner shall conduct 
560.28  all background studies required under this chapter for adult 
560.29  foster care providers who are licensed by the commissioner of 
560.30  human services and registered under chapter 144D.  The 
560.31  commissioner shall conduct these background studies in 
560.32  accordance with this chapter.  The commissioner shall initiate a 
560.33  pilot project to conduct up to 5,000 background studies under 
560.34  this chapter in programs with joint licensure as home and 
560.35  community-based services and adult foster care for people with 
560.36  developmental disabilities when the license holder does not 
561.1   reside in the foster care residence. 
561.2      (b) Beginning July 1, 1998, the commissioner shall conduct 
561.3   a background study on individuals specified in 
561.4   paragraph (c) (d), clauses (1) to (5), who perform direct 
561.5   contact services in a nursing home or a home care agency 
561.6   licensed under chapter 144A or a boarding care home licensed 
561.7   under sections 144.50 to 144.58, when the subject of the study 
561.8   resides outside Minnesota; the study must be at least as 
561.9   comprehensive as that of a Minnesota resident and include a 
561.10  search of information from the criminal justice data 
561.11  communications network in the state where the subject of the 
561.12  study resides. 
561.13     (c) Beginning August 1, 2001, the commissioner shall 
561.14  conduct all background studies required under this chapter and 
561.15  initiated by supplemental nursing services agencies registered 
561.16  under section 144A.71, subdivision 1.  Studies for the agencies 
561.17  must be initiated annually by each agency.  The commissioner 
561.18  shall conduct the background studies according to this chapter.  
561.19  The commissioner shall recover the cost of the background 
561.20  studies through a fee of no more than $8 per study, charged to 
561.21  the supplemental nursing services agency.  Money collected under 
561.22  this paragraph is appropriated to the commissioner to pay the 
561.23  costs of background studies. 
561.24     (d) The applicant, license holder, the registrant under 
561.25  section 144A.71, subdivision 1, bureau of criminal apprehension, 
561.26  the commissioner of health, and county agencies, after written 
561.27  notice to the individual who is the subject of the study, shall 
561.28  help with the study by giving the commissioner criminal 
561.29  conviction data and reports about the maltreatment of adults 
561.30  substantiated under section 626.557 and the maltreatment of 
561.31  minors in licensed programs substantiated under section 
561.32  626.556.  The individuals to be studied shall include: 
561.33     (1) the applicant; 
561.34     (2) persons over the age of 13 living in the household 
561.35  where the licensed program will be provided; 
561.36     (3) current employees or contractors of the applicant who 
562.1   will have direct contact with persons served by the facility, 
562.2   agency, or program; 
562.3      (4) volunteers or student volunteers who have direct 
562.4   contact with persons served by the program to provide program 
562.5   services, if the contact is not directly supervised by the 
562.6   individuals listed in clause (1) or (3); and 
562.7      (5) any person who, as an individual or as a member of an 
562.8   organization, exclusively offers, provides, or arranges for 
562.9   personal care assistant services under the medical assistance 
562.10  program as authorized under sections 256B.04, subdivision 16, 
562.11  and 256B.0625, subdivision 19a. 
562.12     The juvenile courts shall also help with the study by 
562.13  giving the commissioner existing juvenile court records on 
562.14  individuals described in clause (2) relating to delinquency 
562.15  proceedings held within either the five years immediately 
562.16  preceding the application or the five years immediately 
562.17  preceding the individual's 18th birthday, whichever time period 
562.18  is longer.  The commissioner shall destroy juvenile records 
562.19  obtained pursuant to this subdivision when the subject of the 
562.20  records reaches age 23.  
562.21     For purposes of this section and Minnesota Rules, part 
562.22  9543.3070, a finding that a delinquency petition is proven in 
562.23  juvenile court shall be considered a conviction in state 
562.24  district court. 
562.25     For purposes of this subdivision, "direct contact" means 
562.26  providing face-to-face care, training, supervision, counseling, 
562.27  consultation, or medication assistance to persons served by a 
562.28  program.  For purposes of this subdivision, "directly supervised"
562.29  means an individual listed in clause (1), (3), or (5) is within 
562.30  sight or hearing of a volunteer to the extent that the 
562.31  individual listed in clause (1), (3), or (5) is capable at all 
562.32  times of intervening to protect the health and safety of the 
562.33  persons served by the program who have direct contact with the 
562.34  volunteer. 
562.35     A study of an individual in clauses (1) to (5) shall be 
562.36  conducted at least upon application for initial license or 
563.1   registration under section 144A.71, subdivision 1, and 
563.2   reapplication for a license or registration.  The commissioner 
563.3   is not required to conduct a study of an individual at the time 
563.4   of reapplication for a license or if the individual has been 
563.5   continuously affiliated with a foster care provider licensed by 
563.6   the commissioner of human services and registered under chapter 
563.7   144D, other than a family day care or foster care license, if:  
563.8   (i) a study of the individual was conducted either at the time 
563.9   of initial licensure or when the individual became affiliated 
563.10  with the license holder; (ii) the individual has been 
563.11  continuously affiliated with the license holder since the last 
563.12  study was conducted; and (iii) the procedure described in 
563.13  paragraph (d) (e) has been implemented and was in effect 
563.14  continuously since the last study was conducted.  For the 
563.15  purposes of this section, a physician licensed under chapter 147 
563.16  is considered to be continuously affiliated upon the license 
563.17  holder's receipt from the commissioner of health or human 
563.18  services of the physician's background study results.  For 
563.19  individuals who are required to have background studies under 
563.20  clauses (1) to (5) and who have been continuously affiliated 
563.21  with a foster care provider that is licensed in more than one 
563.22  county, criminal conviction data may be shared among those 
563.23  counties in which the foster care programs are licensed.  A 
563.24  county agency's receipt of criminal conviction data from another 
563.25  county agency shall meet the criminal data background study 
563.26  requirements of this section. 
563.27     The commissioner may also conduct studies on individuals 
563.28  specified in clauses (3) and (4) when the studies are initiated 
563.29  by: 
563.30     (i) personnel pool agencies; 
563.31     (ii) temporary personnel agencies; 
563.32     (iii) educational programs that train persons by providing 
563.33  direct contact services in licensed programs; and 
563.34     (iv) professional services agencies that are not licensed 
563.35  and which contract with licensed programs to provide direct 
563.36  contact services or individuals who provide direct contact 
564.1   services. 
564.2      Studies on individuals in items (i) to (iv) must be 
564.3   initiated annually by these agencies, programs, and 
564.4   individuals.  Except for personal care provider 
564.5   organizations and supplemental nursing services agencies, no 
564.6   applicant, license holder, or individual who is the subject of 
564.7   the study shall pay any fees required to conduct the study. 
564.8      (1) At the option of the licensed facility, rather than 
564.9   initiating another background study on an individual required to 
564.10  be studied who has indicated to the licensed facility that a 
564.11  background study by the commissioner was previously completed, 
564.12  the facility may make a request to the commissioner for 
564.13  documentation of the individual's background study status, 
564.14  provided that: 
564.15     (i) the facility makes this request using a form provided 
564.16  by the commissioner; 
564.17     (ii) in making the request the facility informs the 
564.18  commissioner that either: 
564.19     (A) the individual has been continuously affiliated with a 
564.20  licensed facility since the individual's previous background 
564.21  study was completed, or since October 1, 1995, whichever is 
564.22  shorter; or 
564.23     (B) the individual is affiliated only with a personnel pool 
564.24  agency, a temporary personnel agency, an educational program 
564.25  that trains persons by providing direct contact services in 
564.26  licensed programs, or a professional services agency that is not 
564.27  licensed and which contracts with licensed programs to provide 
564.28  direct contact services or individuals who provide direct 
564.29  contact services; and 
564.30     (iii) the facility provides notices to the individual as 
564.31  required in paragraphs (a) to (d) (e), and that the facility is 
564.32  requesting written notification of the individual's background 
564.33  study status from the commissioner.  
564.34     (2) The commissioner shall respond to each request under 
564.35  paragraph (1) with a written or electronic notice to the 
564.36  facility and the study subject.  If the commissioner determines 
565.1   that a background study is necessary, the study shall be 
565.2   completed without further request from a licensed agency or 
565.3   notifications to the study subject.  
565.4      (3) When a background study is being initiated by a 
565.5   licensed facility or a foster care provider that is also 
565.6   registered under chapter 144D, a study subject affiliated with 
565.7   multiple licensed facilities may attach to the background study 
565.8   form a cover letter indicating the additional facilities' names, 
565.9   addresses, and background study identification numbers.  When 
565.10  the commissioner receives such notices, each facility identified 
565.11  by the background study subject shall be notified of the study 
565.12  results.  The background study notice sent to the subsequent 
565.13  agencies shall satisfy those facilities' responsibilities for 
565.14  initiating a background study on that individual. 
565.15     (d) (e) If an individual who is affiliated with a program 
565.16  or facility regulated by the department of human services or 
565.17  department of health or who is affiliated with a nonlicensed 
565.18  personal care provider organization, is convicted of a crime 
565.19  constituting a disqualification under subdivision 3d, the 
565.20  probation officer or corrections agent shall notify the 
565.21  commissioner of the conviction.  The commissioner, in 
565.22  consultation with the commissioner of corrections, shall develop 
565.23  forms and information necessary to implement this paragraph and 
565.24  shall provide the forms and information to the commissioner of 
565.25  corrections for distribution to local probation officers and 
565.26  corrections agents.  The commissioner shall inform individuals 
565.27  subject to a background study that criminal convictions for 
565.28  disqualifying crimes will be reported to the commissioner by the 
565.29  corrections system.  A probation officer, corrections agent, or 
565.30  corrections agency is not civilly or criminally liable for 
565.31  disclosing or failing to disclose the information required by 
565.32  this paragraph.  Upon receipt of disqualifying information, the 
565.33  commissioner shall provide the notifications required in 
565.34  subdivision 3a, as appropriate to agencies on record as having 
565.35  initiated a background study or making a request for 
565.36  documentation of the background study status of the individual.  
566.1   This paragraph does not apply to family day care and child 
566.2   foster care programs. 
566.3      (e) (f) The individual who is the subject of the study must 
566.4   provide the applicant or license holder with sufficient 
566.5   information to ensure an accurate study including the 
566.6   individual's first, middle, and last name; home address, city, 
566.7   county, and state of residence for the past five years; zip 
566.8   code; sex; date of birth; and driver's license number.  The 
566.9   applicant or license holder shall provide this information about 
566.10  an individual in paragraph (c) (d), clauses (1) to (5), on forms 
566.11  prescribed by the commissioner.  By January 1, 2000, for 
566.12  background studies conducted by the department of human 
566.13  services, the commissioner shall implement a system for the 
566.14  electronic transmission of:  (1) background study information to 
566.15  the commissioner; and (2) background study results to the 
566.16  license holder.  The commissioner may request additional 
566.17  information of the individual, which shall be optional for the 
566.18  individual to provide, such as the individual's social security 
566.19  number or race. 
566.20     (f) (g) Except for child foster care, adult foster care, 
566.21  and family day care homes, a study must include information 
566.22  related to names of substantiated perpetrators of maltreatment 
566.23  of vulnerable adults that has been received by the commissioner 
566.24  as required under section 626.557, subdivision 9c, paragraph 
566.25  (i), and the commissioner's records relating to the maltreatment 
566.26  of minors in licensed programs, information from juvenile courts 
566.27  as required in paragraph (c) (d) for persons listed in paragraph 
566.28  (c) (d), clause (2), and information from the bureau of criminal 
566.29  apprehension.  For child foster care, adult foster care, and 
566.30  family day care homes, the study must include information from 
566.31  the county agency's record of substantiated maltreatment of 
566.32  adults, and the maltreatment of minors, information from 
566.33  juvenile courts as required in paragraph (c) (d) for persons 
566.34  listed in paragraph (c) (d), clause (2), and information from 
566.35  the bureau of criminal apprehension.  The commissioner may also 
566.36  review arrest and investigative information from the bureau of 
567.1   criminal apprehension, the commissioner of health, a county 
567.2   attorney, county sheriff, county agency, local chief of police, 
567.3   other states, the courts, or the Federal Bureau of Investigation 
567.4   if the commissioner has reasonable cause to believe the 
567.5   information is pertinent to the disqualification of an 
567.6   individual listed in paragraph (c) (d), clauses (1) to (5).  The 
567.7   commissioner is not required to conduct more than one review of 
567.8   a subject's records from the Federal Bureau of Investigation if 
567.9   a review of the subject's criminal history with the Federal 
567.10  Bureau of Investigation has already been completed by the 
567.11  commissioner and there has been no break in the subject's 
567.12  affiliation with the license holder who initiated the background 
567.13  studies. 
567.14     When the commissioner has reasonable cause to believe that 
567.15  further pertinent information may exist on the subject, the 
567.16  subject shall provide a set of classifiable fingerprints 
567.17  obtained from an authorized law enforcement agency.  For 
567.18  purposes of requiring fingerprints, the commissioner shall be 
567.19  considered to have reasonable cause under, but not limited to, 
567.20  the following circumstances: 
567.21     (1) information from the bureau of criminal apprehension 
567.22  indicates that the subject is a multistate offender; 
567.23     (2) information from the bureau of criminal apprehension 
567.24  indicates that multistate offender status is undetermined; or 
567.25     (3) the commissioner has received a report from the subject 
567.26  or a third party indicating that the subject has a criminal 
567.27  history in a jurisdiction other than Minnesota. 
567.28     (g) (h) The failure or refusal of an applicant's or license 
567.29  holder's failure or refusal applicant, license holder, or 
567.30  registrant under section 144A.71, subdivision 1, to cooperate 
567.31  with the commissioner is reasonable cause to disqualify a 
567.32  subject, deny a license application or immediately suspend, 
567.33  suspend, or revoke a license or registration.  Failure or 
567.34  refusal of an individual to cooperate with the study is just 
567.35  cause for denying or terminating employment of the individual if 
567.36  the individual's failure or refusal to cooperate could cause the 
568.1   applicant's application to be denied or the license holder's 
568.2   license to be immediately suspended, suspended, or revoked. 
568.3      (h) (i) The commissioner shall not consider an application 
568.4   to be complete until all of the information required to be 
568.5   provided under this subdivision has been received.  
568.6      (i) (j) No person in paragraph (c) (d), clause (1), (2), 
568.7   (3), (4), or (5), who is disqualified as a result of this 
568.8   section may be retained by the agency in a position involving 
568.9   direct contact with persons served by the program. 
568.10     (j) (k) Termination of persons in paragraph (c) (d), clause 
568.11  (1), (2), (3), (4), or (5), made in good faith reliance on a 
568.12  notice of disqualification provided by the commissioner shall 
568.13  not subject the applicant or license holder to civil liability. 
568.14     (k) (l) The commissioner may establish records to fulfill 
568.15  the requirements of this section. 
568.16     (l) (m) The commissioner may not disqualify an individual 
568.17  subject to a study under this section because that person has, 
568.18  or has had, a mental illness as defined in section 245.462, 
568.19  subdivision 20. 
568.20     (m) (n) An individual subject to disqualification under 
568.21  this subdivision has the applicable rights in subdivision 3a, 
568.22  3b, or 3c. 
568.23     (n) (o) For the purposes of background studies completed by 
568.24  tribal organizations performing licensing activities otherwise 
568.25  required of the commissioner under this chapter, after obtaining 
568.26  consent from the background study subject, tribal licensing 
568.27  agencies shall have access to criminal history data in the same 
568.28  manner as county licensing agencies and private licensing 
568.29  agencies under this chapter. 
568.30     Sec. 6.  Minnesota Statutes 2000, section 245A.04, 
568.31  subdivision 3a, is amended to read: 
568.32     Subd. 3a.  [NOTIFICATION TO SUBJECT AND LICENSE HOLDER OF 
568.33  STUDY RESULTS; DETERMINATION OF RISK OF HARM.] (a) The 
568.34  commissioner shall notify the applicant or, license holder, or 
568.35  registrant under section 144A.71, subdivision 1 and the 
568.36  individual who is the subject of the study, in writing or by 
569.1   electronic transmission, of the results of the study.  When the 
569.2   study is completed, a notice that the study was undertaken and 
569.3   completed shall be maintained in the personnel files of the 
569.4   program.  For studies on individuals pertaining to a license to 
569.5   provide family day care or group family day care, foster care 
569.6   for children in the provider's own home, or foster care or day 
569.7   care services for adults in the provider's own home, the 
569.8   commissioner is not required to provide a separate notice of the 
569.9   background study results to the individual who is the subject of 
569.10  the study unless the study results in a disqualification of the 
569.11  individual. 
569.12     The commissioner shall notify the individual studied if the 
569.13  information in the study indicates the individual is 
569.14  disqualified from direct contact with persons served by the 
569.15  program.  The commissioner shall disclose the information 
569.16  causing disqualification and instructions on how to request a 
569.17  reconsideration of the disqualification to the individual 
569.18  studied.  An applicant or license holder who is not the subject 
569.19  of the study shall be informed that the commissioner has found 
569.20  information that disqualifies the subject from direct contact 
569.21  with persons served by the program.  However, only the 
569.22  individual studied must be informed of the information contained 
569.23  in the subject's background study unless the only basis for the 
569.24  disqualification is failure to cooperate, substantiated 
569.25  maltreatment under section 626.556 or 626.557, the Data 
569.26  Practices Act provides for release of the information, or the 
569.27  individual studied authorizes the release of the 
569.28  information.  When a disqualification is based on the subject's 
569.29  failure to cooperate with the background study or substantiated 
569.30  maltreatment under section 626.556 or 626.557, the agency that 
569.31  initiated the study shall be informed by the commissioner of the 
569.32  reason for the disqualification. 
569.33     (b) Except as provided in subdivision 3d, paragraph (b), if 
569.34  the commissioner determines that the individual studied has a 
569.35  disqualifying characteristic, the commissioner shall review the 
569.36  information immediately available and make a determination as to 
570.1   the subject's immediate risk of harm to persons served by the 
570.2   program where the individual studied will have direct contact.  
570.3   The commissioner shall consider all relevant information 
570.4   available, including the following factors in determining the 
570.5   immediate risk of harm:  the recency of the disqualifying 
570.6   characteristic; the recency of discharge from probation for the 
570.7   crimes; the number of disqualifying characteristics; the 
570.8   intrusiveness or violence of the disqualifying characteristic; 
570.9   the vulnerability of the victim involved in the disqualifying 
570.10  characteristic; and the similarity of the victim to the persons 
570.11  served by the program where the individual studied will have 
570.12  direct contact.  The commissioner may determine that the 
570.13  evaluation of the information immediately available gives the 
570.14  commissioner reason to believe one of the following: 
570.15     (1) The individual poses an imminent risk of harm to 
570.16  persons served by the program where the individual studied will 
570.17  have direct contact.  If the commissioner determines that an 
570.18  individual studied poses an imminent risk of harm to persons 
570.19  served by the program where the individual studied will have 
570.20  direct contact, the individual and the license holder must be 
570.21  sent a notice of disqualification.  The commissioner shall order 
570.22  the license holder to immediately remove the individual studied 
570.23  from direct contact.  The notice to the individual studied must 
570.24  include an explanation of the basis of this determination. 
570.25     (2) The individual poses a risk of harm requiring 
570.26  continuous supervision while providing direct contact services 
570.27  during the period in which the subject may request a 
570.28  reconsideration.  If the commissioner determines that an 
570.29  individual studied poses a risk of harm that requires continuous 
570.30  supervision, the individual and the license holder must be sent 
570.31  a notice of disqualification.  The commissioner shall order the 
570.32  license holder to immediately remove the individual studied from 
570.33  direct contact services or assure that the individual studied is 
570.34  within sight or hearing of another staff person when providing 
570.35  direct contact services during the period in which the 
570.36  individual may request a reconsideration of the 
571.1   disqualification.  If the individual studied does not submit a 
571.2   timely request for reconsideration, or the individual submits a 
571.3   timely request for reconsideration, but the disqualification is 
571.4   not set aside for that license holder, the license holder will 
571.5   be notified of the disqualification and ordered to immediately 
571.6   remove the individual from any position allowing direct contact 
571.7   with persons receiving services from the license holder. 
571.8      (3) The individual does not pose an imminent risk of harm 
571.9   or a risk of harm requiring continuous supervision while 
571.10  providing direct contact services during the period in which the 
571.11  subject may request a reconsideration.  If the commissioner 
571.12  determines that an individual studied does not pose a risk of 
571.13  harm that requires continuous supervision, only the individual 
571.14  must be sent a notice of disqualification.  The license holder 
571.15  must be sent a notice that more time is needed to complete the 
571.16  individual's background study.  If the individual studied 
571.17  submits a timely request for reconsideration, and if the 
571.18  disqualification is set aside for that license holder, the 
571.19  license holder will receive the same notification received by 
571.20  license holders in cases where the individual studied has no 
571.21  disqualifying characteristic.  If the individual studied does 
571.22  not submit a timely request for reconsideration, or the 
571.23  individual submits a timely request for reconsideration, but the 
571.24  disqualification is not set aside for that license holder, the 
571.25  license holder will be notified of the disqualification and 
571.26  ordered to immediately remove the individual from any position 
571.27  allowing direct contact with persons receiving services from the 
571.28  license holder.  
571.29     (c) County licensing agencies performing duties under this 
571.30  subdivision may develop an alternative system for determining 
571.31  the subject's immediate risk of harm to persons served by the 
571.32  program, providing the notices under paragraph (b), and 
571.33  documenting the action taken by the county licensing agency.  
571.34  Each county licensing agency's implementation of the alternative 
571.35  system is subject to approval by the commissioner.  
571.36  Notwithstanding this alternative system, county licensing 
572.1   agencies shall complete the requirements of paragraph (a). 
572.2      Sec. 7.  Minnesota Statutes 2000, section 245A.04, 
572.3   subdivision 3b, is amended to read: 
572.4      Subd. 3b.  [RECONSIDERATION OF DISQUALIFICATION.] (a) The 
572.5   individual who is the subject of the disqualification may 
572.6   request a reconsideration of the disqualification.  
572.7      The individual must submit the request for reconsideration 
572.8   to the commissioner in writing.  A request for reconsideration 
572.9   for an individual who has been sent a notice of disqualification 
572.10  under subdivision 3a, paragraph (b), clause (1) or (2), must be 
572.11  submitted within 30 calendar days of the disqualified 
572.12  individual's receipt of the notice of disqualification.  A 
572.13  request for reconsideration for an individual who has been sent 
572.14  a notice of disqualification under subdivision 3a, paragraph 
572.15  (b), clause (3), must be submitted within 15 calendar days of 
572.16  the disqualified individual's receipt of the notice of 
572.17  disqualification.  An individual who was determined to have 
572.18  maltreated a child under section 626.556 or a vulnerable adult 
572.19  under section 626.557, and who was disqualified under this 
572.20  section on the basis of serious or recurring maltreatment, may 
572.21  request reconsideration of both the maltreatment and the 
572.22  disqualification determinations.  The request for 
572.23  reconsideration of the maltreatment determination and the 
572.24  disqualification must be submitted within 30 calendar days of 
572.25  the individual's receipt of the notice of disqualification.  
572.26  Removal of a disqualified individual from direct contact shall 
572.27  be ordered if the individual does not request reconsideration 
572.28  within the prescribed time, and for an individual who submits a 
572.29  timely request for reconsideration, if the disqualification is 
572.30  not set aside.  The individual must present information showing 
572.31  that: 
572.32     (1) the information the commissioner relied upon is 
572.33  incorrect or inaccurate.  If the basis of a reconsideration 
572.34  request is that a maltreatment determination or disposition 
572.35  under section 626.556 or 626.557 is incorrect, and the 
572.36  commissioner has issued a final order in an appeal of that 
573.1   determination or disposition under section 256.045 or 245A.08, 
573.2   subdivision 5, the commissioner's order is conclusive on the 
573.3   issue of maltreatment.  If the individual did not request 
573.4   reconsideration of the maltreatment determination, the 
573.5   maltreatment determination is deemed conclusive; or 
573.6      (2) the subject of the study does not pose a risk of harm 
573.7   to any person served by the applicant or, license holder, or 
573.8   registrant under section 144A.71, subdivision 1. 
573.9      (b) The commissioner shall rescind the disqualification if 
573.10  the commissioner finds that the information relied on to 
573.11  disqualify the subject is incorrect.  The commissioner may set 
573.12  aside the disqualification under this section if the 
573.13  commissioner finds that the information the commissioner relied 
573.14  upon is incorrect or the individual does not pose a risk of harm 
573.15  to any person served by the applicant or, license holder, or 
573.16  registrant under section 144A.71, subdivision 1.  In determining 
573.17  that an individual does not pose a risk of harm, the 
573.18  commissioner shall consider the consequences of the event or 
573.19  events that lead to disqualification, whether there is more than 
573.20  one disqualifying event, the vulnerability of the victim at the 
573.21  time of the event, the time elapsed without a repeat of the same 
573.22  or similar event, documentation of successful completion by the 
573.23  individual studied of training or rehabilitation pertinent to 
573.24  the event, and any other information relevant to 
573.25  reconsideration.  In reviewing a disqualification under this 
573.26  section, the commissioner shall give preeminent weight to the 
573.27  safety of each person to be served by the license holder or, 
573.28  applicant, or registrant under section 144A.71, subdivision 1, 
573.29  over the interests of the license holder or, applicant, or 
573.30  registrant under section 144A.71, subdivision 1. 
573.31     (c) Unless the information the commissioner relied on in 
573.32  disqualifying an individual is incorrect, the commissioner may 
573.33  not set aside the disqualification of an individual in 
573.34  connection with a license to provide family day care for 
573.35  children, foster care for children in the provider's own home, 
573.36  or foster care or day care services for adults in the provider's 
574.1   own home if: 
574.2      (1) less than ten years have passed since the discharge of 
574.3   the sentence imposed for the offense; and the individual has 
574.4   been convicted of a violation of any offense listed in sections 
574.5   609.20 (manslaughter in the first degree), 609.205 (manslaughter 
574.6   in the second degree), criminal vehicular homicide under 609.21 
574.7   (criminal vehicular homicide and injury), 609.215 (aiding 
574.8   suicide or aiding attempted suicide), felony violations under 
574.9   609.221 to 609.2231 (assault in the first, second, third, or 
574.10  fourth degree), 609.713 (terroristic threats), 609.235 (use of 
574.11  drugs to injure or to facilitate crime), 609.24 (simple 
574.12  robbery), 609.245 (aggravated robbery), 609.25 (kidnapping), 
574.13  609.255 (false imprisonment), 609.561 or 609.562 (arson in the 
574.14  first or second degree), 609.71 (riot), burglary in the first or 
574.15  second degree under 609.582 (burglary), 609.66 (dangerous 
574.16  weapon), 609.665 (spring guns), 609.67 (machine guns and 
574.17  short-barreled shotguns), 609.749 (harassment; stalking), 
574.18  152.021 or 152.022 (controlled substance crime in the first or 
574.19  second degree), 152.023, subdivision 1, clause (3) or (4), or 
574.20  subdivision 2, clause (4) (controlled substance crime in the 
574.21  third degree), 152.024, subdivision 1, clause (2), (3), or (4) 
574.22  (controlled substance crime in the fourth degree), 609.224, 
574.23  subdivision 2, paragraph (c) (fifth-degree assault by a 
574.24  caregiver against a vulnerable adult), 609.228 (great bodily 
574.25  harm caused by distribution of drugs), 609.23 (mistreatment of 
574.26  persons confined), 609.231 (mistreatment of residents or 
574.27  patients), 609.2325 (criminal abuse of a vulnerable adult), 
574.28  609.233 (criminal neglect of a vulnerable adult), 609.2335 
574.29  (financial exploitation of a vulnerable adult), 609.234 (failure 
574.30  to report), 609.265 (abduction), 609.2664 to 609.2665 
574.31  (manslaughter of an unborn child in the first or second degree), 
574.32  609.267 to 609.2672 (assault of an unborn child in the first, 
574.33  second, or third degree), 609.268 (injury or death of an unborn 
574.34  child in the commission of a crime), 617.293 (disseminating or 
574.35  displaying harmful material to minors), a gross misdemeanor 
574.36  offense under 609.324, subdivision 1 (other prohibited acts), a 
575.1   gross misdemeanor offense under 609.378 (neglect or endangerment 
575.2   of a child), a gross misdemeanor offense under 609.377 
575.3   (malicious punishment of a child), 609.72, subdivision 3 
575.4   (disorderly conduct against a vulnerable adult); or an attempt 
575.5   or conspiracy to commit any of these offenses, as each of these 
575.6   offenses is defined in Minnesota Statutes; or an offense in any 
575.7   other state, the elements of which are substantially similar to 
575.8   the elements of any of the foregoing offenses; 
575.9      (2) regardless of how much time has passed since the 
575.10  discharge of the sentence imposed for the offense, the 
575.11  individual was convicted of a violation of any offense listed in 
575.12  sections 609.185 to 609.195 (murder in the first, second, or 
575.13  third degree), 609.2661 to 609.2663 (murder of an unborn child 
575.14  in the first, second, or third degree), a felony offense under 
575.15  609.377 (malicious punishment of a child), a felony offense 
575.16  under 609.324, subdivision 1 (other prohibited acts), a felony 
575.17  offense under 609.378 (neglect or endangerment of a child), 
575.18  609.322 (solicitation, inducement, and promotion of 
575.19  prostitution), 609.342 to 609.345 (criminal sexual conduct in 
575.20  the first, second, third, or fourth degree), 609.352 
575.21  (solicitation of children to engage in sexual conduct), 617.246 
575.22  (use of minors in a sexual performance), 617.247 (possession of 
575.23  pictorial representations of a minor), 609.365 (incest), a 
575.24  felony offense under sections 609.2242 and 609.2243 (domestic 
575.25  assault), a felony offense of spousal abuse, a felony offense of 
575.26  child abuse or neglect, a felony offense of a crime against 
575.27  children, or an attempt or conspiracy to commit any of these 
575.28  offenses as defined in Minnesota Statutes, or an offense in any 
575.29  other state, the elements of which are substantially similar to 
575.30  any of the foregoing offenses; 
575.31     (3) within the seven years preceding the study, the 
575.32  individual committed an act that constitutes maltreatment of a 
575.33  child under section 626.556, subdivision 10e, and that resulted 
575.34  in substantial bodily harm as defined in section 609.02, 
575.35  subdivision 7a, or substantial mental or emotional harm as 
575.36  supported by competent psychological or psychiatric evidence; or 
576.1      (4) within the seven years preceding the study, the 
576.2   individual was determined under section 626.557 to be the 
576.3   perpetrator of a substantiated incident of maltreatment of a 
576.4   vulnerable adult that resulted in substantial bodily harm as 
576.5   defined in section 609.02, subdivision 7a, or substantial mental 
576.6   or emotional harm as supported by competent psychological or 
576.7   psychiatric evidence. 
576.8      In the case of any ground for disqualification under 
576.9   clauses (1) to (4), if the act was committed by an individual 
576.10  other than the applicant or, license holder, or registrant under 
576.11  section 144A.71, subdivision 1, residing in the applicant's or 
576.12  license holder's home, or the home of a registrant under section 
576.13  144A.71, subdivision 1, the applicant or, license holder, or 
576.14  registrant under section 144A.71, subdivision 1, may seek 
576.15  reconsideration when the individual who committed the act no 
576.16  longer resides in the home.  
576.17     The disqualification periods provided under clauses (1), 
576.18  (3), and (4) are the minimum applicable disqualification 
576.19  periods.  The commissioner may determine that an individual 
576.20  should continue to be disqualified from licensure or 
576.21  registration under section 144A.71, subdivision 1, because the 
576.22  license holder or, applicant, or registrant under section 
576.23  144A.71, subdivision 1, poses a risk of harm to a person served 
576.24  by that individual after the minimum disqualification period has 
576.25  passed. 
576.26     (d) The commissioner shall respond in writing or by 
576.27  electronic transmission to all reconsideration requests for 
576.28  which the basis for the request is that the information relied 
576.29  upon by the commissioner to disqualify is incorrect or 
576.30  inaccurate within 30 working days of receipt of a request and 
576.31  all relevant information.  If the basis for the request is that 
576.32  the individual does not pose a risk of harm, the commissioner 
576.33  shall respond to the request within 15 working days after 
576.34  receiving the request for reconsideration and all relevant 
576.35  information.  If the request is based on both the correctness or 
576.36  accuracy of the information relied on to disqualify the 
577.1   individual and the risk of harm, the commissioner shall respond 
577.2   to the request within 45 working days after receiving the 
577.3   request for reconsideration and all relevant information.  If 
577.4   the disqualification is set aside, the commissioner shall notify 
577.5   the applicant or license holder in writing or by electronic 
577.6   transmission of the decision. 
577.7      (e) Except as provided in subdivision 3c, the 
577.8   commissioner's decision to disqualify an individual, including 
577.9   the decision to grant or deny a rescission or set aside a 
577.10  disqualification under this section, is the final administrative 
577.11  agency action and shall not be subject to further review in a 
577.12  contested case under chapter 14 involving a negative licensing 
577.13  appeal taken in response to the disqualification or involving an 
577.14  accuracy and completeness appeal under section 13.04 if a 
577.15  disqualification is not set aside or is not rescinded, an 
577.16  individual who was disqualified on the basis of a preponderance 
577.17  of evidence that the individual committed an act or acts that 
577.18  meet the definition of any of the crimes lists in subdivision 
577.19  3d, paragraph (a), clauses (1) to (4); or for failure to make 
577.20  required reports under section 626.556, subdivision 3, or 
577.21  626.557, subdivision 3, pursuant to subdivision 3d, paragraph 
577.22  (a), clause (4), may request a fair hearing under section 
577.23  256.045.  Except as provided under subdivision 3c, the 
577.24  commissioner's final order for an individual under this 
577.25  paragraph is conclusive on the issue of maltreatment and 
577.26  disqualification, including for purposes of subsequent studies 
577.27  conducted under subdivision 3, and is the only administrative 
577.28  appeal of the final agency determination, specifically, 
577.29  including a challenge to the accuracy and completeness of data 
577.30  under section 13.04.  
577.31     (f) Except as provided under subdivision 3c, if an 
577.32  individual was disqualified on the basis of a determination of 
577.33  maltreatment under section 626.556 or 626.557, which was serious 
577.34  or recurring, and the individual has requested reconsideration 
577.35  of the maltreatment determination under section 626.556, 
577.36  subdivision 10i, or 626.557, subdivision 9d, and also requested 
578.1   reconsideration of the disqualification under this subdivision, 
578.2   reconsideration of the maltreatment determination and 
578.3   reconsideration of the disqualification shall be consolidated 
578.4   into a single reconsideration.  For maltreatment and 
578.5   disqualification determinations made by county agencies, the 
578.6   consolidated reconsideration shall be conducted by the county 
578.7   agency.  Except as provided under subdivision 3c, if an 
578.8   individual who was disqualified on the basis of serious or 
578.9   recurring maltreatment requests a fair hearing on the 
578.10  maltreatment determination under section 626.556, subdivision 
578.11  10i, or 626.557, subdivision 9d, the scope of the fair hearing 
578.12  under section 256.045 shall include the maltreatment 
578.13  determination and the disqualification.  Except as provided 
578.14  under subdivision 3c, the commissioner's final order for an 
578.15  individual under this paragraph is conclusive on the issue of 
578.16  maltreatment and disqualification, including for purposes of 
578.17  subsequent studies conducted under subdivision 3, and is the 
578.18  only administrative appeal of the final agency determination, 
578.19  specifically, including a challenge to the accuracy and 
578.20  completeness of data under section 13.04. 
578.21     Sec. 8.  Minnesota Statutes 2000, section 245A.04, 
578.22  subdivision 3c, is amended to read: 
578.23     Subd. 3c.  [CONTESTED CASE.] (a) Notwithstanding 
578.24  subdivision 3b, paragraphs (e) and (f), if a disqualification is 
578.25  not set aside, a person who is an employee of an employer, as 
578.26  defined in section 179A.03, subdivision 15, may request a 
578.27  contested case hearing under chapter 14.  If the 
578.28  disqualification which was not set aside or was not rescinded 
578.29  was based on a maltreatment determination, the scope of the 
578.30  contested case hearing includes the maltreatment determination 
578.31  and the disqualification.  In such cases, a fair hearing shall 
578.32  not be conducted under section 256.045.  Rules adopted under 
578.33  this chapter may not preclude an employee in a contested case 
578.34  hearing for disqualification from submitting evidence concerning 
578.35  information gathered under subdivision 3, paragraph (e).  
578.36     (b) If a disqualification for which reconsideration was 
579.1   requested and which was not set aside or was not rescinded under 
579.2   subdivision 3b is the basis for a denial of a license under 
579.3   section 245A.05 or a licensing sanction under section 245A.07, 
579.4   the license holder has the right to a contested case hearing 
579.5   under chapter 14 and Minnesota Rules, parts 1400.8550 to 
579.6   1400.8612.  The appeal must be submitted in accordance with 
579.7   section 245A.05 or 245A.07, subdivision 3.  As provided for 
579.8   under section 245A.08, subdivision 2a, the scope of the 
579.9   consolidated contested case hearing shall include the 
579.10  disqualification and the licensing sanction or denial of a 
579.11  license.  If the disqualification was based on a determination 
579.12  of substantiated serious or recurring maltreatment under section 
579.13  626.556 or 626.557, the appeal must be submitted in accordance 
579.14  with sections 245A.07, subdivision 3, and 626.556, subdivision 
579.15  10i, or 626.557, subdivision 9d.  As provided for under section 
579.16  245A.08, subdivision 2a, the scope of the contested case hearing 
579.17  shall include the maltreatment determination, the 
579.18  disqualification, and the licensing sanction or denial of a 
579.19  license.  In such cases, a fair hearing shall not be conducted 
579.20  under section 256.045. 
579.21     (c) If a maltreatment determination or disqualification, 
579.22  which was not set aside or was not rescinded under subdivision 
579.23  3b, is the basis for a denial of a license under section 245A.05 
579.24  or a licensing sanction under section 245A.07, and the 
579.25  disqualified subject is an individual other than the license 
579.26  holder and upon whom a background study must be conducted under 
579.27  subdivision 3, the hearing of all parties may be consolidated 
579.28  into a single contested case hearing upon consent of all parties 
579.29  and the administrative law judge.  
579.30     (d) The commissioner's final order under section 245A.08, 
579.31  subdivision 5, is conclusive on the issue of maltreatment and 
579.32  disqualification, including for purposes of subsequent 
579.33  background studies.  The contested case hearing under this 
579.34  subdivision is the only administrative appeal of the final 
579.35  agency determination, specifically, including a challenge to the 
579.36  accuracy and completeness of data under section 13.04. 
580.1      Sec. 9.  Minnesota Statutes 2000, section 245A.04, 
580.2   subdivision 3d, is amended to read: 
580.3      Subd. 3d.  [DISQUALIFICATION.] (a) Except as provided in 
580.4   paragraph (b), when a background study completed under 
580.5   subdivision 3 shows any of the following:  a conviction of one 
580.6   or more crimes listed in clauses (1) to (4); the individual has 
580.7   admitted to or a preponderance of the evidence indicates the 
580.8   individual has committed an act or acts that meet the definition 
580.9   of any of the crimes listed in clauses (1) to (4); or an 
580.10  investigation results in an administrative determination listed 
580.11  under clause (4), the individual shall be disqualified from any 
580.12  position allowing direct contact with persons receiving services 
580.13  from the license holder, or registrant under section 144A.71, 
580.14  subdivision 1, and for individuals studied under section 
580.15  245A.04, subdivision 3, paragraph (c), clauses (2), (6), and 
580.16  (7), the individual shall also be disqualified from access to a 
580.17  person receiving services from the license holder: 
580.18     (1) regardless of how much time has passed since the 
580.19  discharge of the sentence imposed for the offense, and unless 
580.20  otherwise specified, regardless of the level of the conviction, 
580.21  the individual was convicted of any of the following offenses:  
580.22  sections 609.185 (murder in the first degree); 609.19 (murder in 
580.23  the second degree); 609.195 (murder in the third degree); 
580.24  609.2661 (murder of an unborn child in the first degree); 
580.25  609.2662 (murder of an unborn child in the second degree); 
580.26  609.2663 (murder of an unborn child in the third degree); 
580.27  609.322 (solicitation, inducement, and promotion of 
580.28  prostitution); 609.342 (criminal sexual conduct in the first 
580.29  degree); 609.343 (criminal sexual conduct in the second degree); 
580.30  609.344 (criminal sexual conduct in the third degree); 609.345 
580.31  (criminal sexual conduct in the fourth degree); 609.352 
580.32  (solicitation of children to engage in sexual conduct); 609.365 
580.33  (incest); felony offense under 609.377 (malicious punishment of 
580.34  a child); a felony offense under 609.378 (neglect or 
580.35  endangerment of a child); a felony offense under 609.324, 
580.36  subdivision 1 (other prohibited acts); 617.246 (use of minors in 
581.1   sexual performance prohibited); 617.247 (possession of pictorial 
581.2   representations of minors); a felony offense under sections 
581.3   609.2242 and 609.2243 (domestic assault), a felony offense of 
581.4   spousal abuse, a felony offense of child abuse or neglect, a 
581.5   felony offense of a crime against children; or attempt or 
581.6   conspiracy to commit any of these offenses as defined in 
581.7   Minnesota Statutes, or an offense in any other state or country, 
581.8   where the elements are substantially similar to any of the 
581.9   offenses listed in this clause; 
581.10     (2) if less than 15 years have passed since the discharge 
581.11  of the sentence imposed for the offense; and the individual has 
581.12  received a felony conviction for a violation of any of these 
581.13  offenses:  sections 609.20 (manslaughter in the first degree); 
581.14  609.205 (manslaughter in the second degree); 609.21 (criminal 
581.15  vehicular homicide and injury); 609.215 (suicide); 609.221 to 
581.16  609.2231 (assault in the first, second, third, or fourth 
581.17  degree); repeat offenses under 609.224 (assault in the fifth 
581.18  degree); repeat offenses under 609.3451 (criminal sexual conduct 
581.19  in the fifth degree); 609.713 (terroristic threats); 609.235 
581.20  (use of drugs to injure or facilitate crime); 609.24 (simple 
581.21  robbery); 609.245 (aggravated robbery); 609.25 (kidnapping); 
581.22  609.255 (false imprisonment); 609.561 (arson in the first 
581.23  degree); 609.562 (arson in the second degree); 609.563 (arson in 
581.24  the third degree); repeat offenses under 617.23 (indecent 
581.25  exposure; penalties); repeat offenses under 617.241 (obscene 
581.26  materials and performances; distribution and exhibition 
581.27  prohibited; penalty); 609.71 (riot); 609.66 (dangerous weapons); 
581.28  609.67 (machine guns and short-barreled shotguns); 609.749 
581.29  (harassment; stalking; penalties); 609.228 (great bodily harm 
581.30  caused by distribution of drugs); 609.2325 (criminal abuse of a 
581.31  vulnerable adult); 609.2664 (manslaughter of an unborn child in 
581.32  the first degree); 609.2665 (manslaughter of an unborn child in 
581.33  the second degree); 609.267 (assault of an unborn child in the 
581.34  first degree); 609.2671 (assault of an unborn child in the 
581.35  second degree); 609.268 (injury or death of an unborn child in 
581.36  the commission of a crime); 609.52 (theft); 609.2335 (financial 
582.1   exploitation of a vulnerable adult); 609.521 (possession of 
582.2   shoplifting gear); 609.582 (burglary); 609.625 (aggravated 
582.3   forgery); 609.63 (forgery); 609.631 (check forgery; offering a 
582.4   forged check); 609.635 (obtaining signature by false pretense); 
582.5   609.27 (coercion); 609.275 (attempt to coerce); 609.687 
582.6   (adulteration); 260C.301 (grounds for termination of parental 
582.7   rights); and chapter 152 (drugs; controlled substance).  An 
582.8   attempt or conspiracy to commit any of these offenses, as each 
582.9   of these offenses is defined in Minnesota Statutes; or an 
582.10  offense in any other state or country, the elements of which are 
582.11  substantially similar to the elements of the offenses in this 
582.12  clause.  If the individual studied is convicted of one of the 
582.13  felonies listed in this clause, but the sentence is a gross 
582.14  misdemeanor or misdemeanor disposition, the lookback period for 
582.15  the conviction is the period applicable to the disposition, that 
582.16  is the period for gross misdemeanors or misdemeanors; 
582.17     (3) if less than ten years have passed since the discharge 
582.18  of the sentence imposed for the offense; and the individual has 
582.19  received a gross misdemeanor conviction for a violation of any 
582.20  of the following offenses:  sections 609.224 (assault in the 
582.21  fifth degree); 609.2242 and 609.2243 (domestic assault); 
582.22  violation of an order for protection under 518B.01, subdivision 
582.23  14; 609.3451 (criminal sexual conduct in the fifth degree); 
582.24  repeat offenses under 609.746 (interference with privacy); 
582.25  repeat offenses under 617.23 (indecent exposure); 617.241 
582.26  (obscene materials and performances); 617.243 (indecent 
582.27  literature, distribution); 617.293 (harmful materials; 
582.28  dissemination and display to minors prohibited); 609.71 (riot); 
582.29  609.66 (dangerous weapons); 609.749 (harassment; stalking; 
582.30  penalties); 609.224, subdivision 2, paragraph (c) (assault in 
582.31  the fifth degree by a caregiver against a vulnerable adult); 
582.32  609.23 (mistreatment of persons confined); 609.231 (mistreatment 
582.33  of residents or patients); 609.2325 (criminal abuse of a 
582.34  vulnerable adult); 609.233 (criminal neglect of a vulnerable 
582.35  adult); 609.2335 (financial exploitation of a vulnerable adult); 
582.36  609.234 (failure to report maltreatment of a vulnerable adult); 
583.1   609.72, subdivision 3 (disorderly conduct against a vulnerable 
583.2   adult); 609.265 (abduction); 609.378 (neglect or endangerment of 
583.3   a child); 609.377 (malicious punishment of a child); 609.324, 
583.4   subdivision 1a (other prohibited acts; minor engaged in 
583.5   prostitution); 609.33 (disorderly house); 609.52 (theft); 
583.6   609.582 (burglary); 609.631 (check forgery; offering a forged 
583.7   check); 609.275 (attempt to coerce); or an attempt or conspiracy 
583.8   to commit any of these offenses, as each of these offenses is 
583.9   defined in Minnesota Statutes; or an offense in any other state 
583.10  or country, the elements of which are substantially similar to 
583.11  the elements of any of the offenses listed in this clause.  If 
583.12  the defendant is convicted of one of the gross misdemeanors 
583.13  listed in this clause, but the sentence is a misdemeanor 
583.14  disposition, the lookback period for the conviction is the 
583.15  period applicable to misdemeanors; or 
583.16     (4) if less than seven years have passed since the 
583.17  discharge of the sentence imposed for the offense; and the 
583.18  individual has received a misdemeanor conviction for a violation 
583.19  of any of the following offenses:  sections 609.224 (assault in 
583.20  the fifth degree); 609.2242 (domestic assault); violation of an 
583.21  order for protection under 518B.01 (Domestic Abuse Act); 
583.22  violation of an order for protection under 609.3232 (protective 
583.23  order authorized; procedures; penalties); 609.746 (interference 
583.24  with privacy); 609.79 (obscene or harassing phone calls); 
583.25  609.795 (letter, telegram, or package; opening; harassment); 
583.26  617.23 (indecent exposure; penalties); 609.2672 (assault of an 
583.27  unborn child in the third degree); 617.293 (harmful materials; 
583.28  dissemination and display to minors prohibited); 609.66 
583.29  (dangerous weapons); 609.665 (spring guns); 609.2335 (financial 
583.30  exploitation of a vulnerable adult); 609.234 (failure to report 
583.31  maltreatment of a vulnerable adult); 609.52 (theft); 609.27 
583.32  (coercion); or an attempt or conspiracy to commit any of these 
583.33  offenses, as each of these offenses is defined in Minnesota 
583.34  Statutes; or an offense in any other state or country, the 
583.35  elements of which are substantially similar to the elements of 
583.36  any of the offenses listed in this clause; failure to make 
584.1   required reports under section 626.556, subdivision 3, or 
584.2   626.557, subdivision 3, for incidents in which:  (i) the final 
584.3   disposition under section 626.556 or 626.557 was substantiated 
584.4   maltreatment, and (ii) the maltreatment was recurring or 
584.5   serious; or substantiated serious or recurring maltreatment of a 
584.6   minor under section 626.556 or of a vulnerable adult under 
584.7   section 626.557 for which there is a preponderance of evidence 
584.8   that the maltreatment occurred, and that the subject was 
584.9   responsible for the maltreatment. 
584.10     For the purposes of this section, "serious maltreatment" 
584.11  means sexual abuse; maltreatment resulting in death; or 
584.12  maltreatment resulting in serious injury which reasonably 
584.13  requires the care of a physician whether or not the care of a 
584.14  physician was sought; or abuse resulting in serious injury.  For 
584.15  purposes of this section, "abuse resulting in serious injury" 
584.16  means:  bruises, bites, skin laceration or tissue damage; 
584.17  fractures; dislocations; evidence of internal injuries; head 
584.18  injuries with loss of consciousness; extensive second-degree or 
584.19  third-degree burns and other burns for which complications are 
584.20  present; extensive second-degree or third-degree frostbite, and 
584.21  others for which complications are present; irreversible 
584.22  mobility or avulsion of teeth; injuries to the eyeball; 
584.23  ingestion of foreign substances and objects that are harmful; 
584.24  near drowning; and heat exhaustion or sunstroke.  For purposes 
584.25  of this section, "care of a physician" is treatment received or 
584.26  ordered by a physician, but does not include diagnostic testing, 
584.27  assessment, or observation.  For the purposes of this section, 
584.28  "recurring maltreatment" means more than one incident of 
584.29  maltreatment for which there is a preponderance of evidence that 
584.30  the maltreatment occurred, and that the subject was responsible 
584.31  for the maltreatment.  For purposes of this section, "access" 
584.32  means physical access to an individual receiving services or the 
584.33  individual's personal property without continuous, direct 
584.34  supervision as defined in section 245A.04, subdivision 3.  
584.35     (b) If Except for background studies related to child 
584.36  foster care, adult foster care, or family child care licensure, 
585.1   when the subject of a background study is licensed regulated by 
585.2   a health-related licensing board as defined in chapter 214, and 
585.3   the regulated person has been determined to have been 
585.4   responsible for substantiated maltreatment under section 626.556 
585.5   or 626.557, instead of the commissioner making a decision 
585.6   regarding disqualification, the board shall make the a 
585.7   determination regarding a disqualification under this 
585.8   subdivision based on a finding of substantiated maltreatment 
585.9   under section 626.556 or 626.557.  The commissioner shall notify 
585.10  the health-related licensing board if a background study shows 
585.11  that a licensee would be disqualified because of substantiated 
585.12  maltreatment and the board shall make a determination under 
585.13  section 214.104. whether to impose disciplinary or corrective 
585.14  action under chapter 214. 
585.15     (1) The commissioner shall notify the health-related 
585.16  licensing board: 
585.17     (i) upon completion of a background study that produces a 
585.18  record showing that the individual was determined to have been 
585.19  responsible for substantiated maltreatment; 
585.20     (ii) upon the commissioner's completion of an investigation 
585.21  that determined the individual was responsible for substantiated 
585.22  maltreatment; or 
585.23     (iii) upon receipt from another agency of a finding of 
585.24  substantiated maltreatment for which the individual was 
585.25  responsible. 
585.26     (2) The commissioner's notice shall indicate whether the 
585.27  individual would have been disqualified by the commissioner for 
585.28  the substantiated maltreatment if the individual were not 
585.29  regulated by the board.  The commissioner shall concurrently 
585.30  send this notice to the individual. 
585.31     (3) Notwithstanding the exclusion from this subdivision for 
585.32  individuals who provide child foster care, adult foster care, or 
585.33  family child care, when the commissioner or a local agency has 
585.34  reason to believe that the direct contact services provided by 
585.35  the individual may fall within the jurisdiction of a 
585.36  health-related licensing board, a referral shall be made to the 
586.1   board as provided in this section. 
586.2      (4) If, upon review of the information provided by the 
586.3   commissioner, a health-related licensing board informs the 
586.4   commissioner that the board does not have jurisdiction to take 
586.5   disciplinary or corrective action, the commissioner shall make 
586.6   the appropriate disqualification decision regarding the 
586.7   individual as otherwise provided in this chapter. 
586.8      (5) The commissioner has the authority to monitor the 
586.9   facility's compliance with any requirements that the 
586.10  health-related licensing board places on regulated persons 
586.11  practicing in a facility either during the period pending a 
586.12  final decision on a disciplinary or corrective action or as a 
586.13  result of a disciplinary or corrective action.  The commissioner 
586.14  has the authority to order the immediate removal of a regulated 
586.15  person from direct contact or access when a board issues an 
586.16  order of temporary suspension based on a determination that the 
586.17  regulated person poses an immediate risk of harm to persons 
586.18  receiving services in a licensed facility. 
586.19     (6) A facility that allows a regulated person to provide 
586.20  direct contact services while not complying with the 
586.21  requirements imposed by the health-related licensing board is 
586.22  subject to action by the commissioner as specified under 
586.23  sections 245A.06 and 245A.07. 
586.24     (7) The commissioner shall notify a health-related 
586.25  licensing board immediately upon receipt of knowledge of 
586.26  noncompliance with requirements placed on a facility or upon a 
586.27  person regulated by the board. 
586.28     Sec. 10.  Minnesota Statutes 2000, section 245A.05, is 
586.29  amended to read: 
586.30     245A.05 [DENIAL OF APPLICATION.] 
586.31     The commissioner may deny a license if an applicant fails 
586.32  to comply with applicable laws or rules, or knowingly withholds 
586.33  relevant information from or gives false or misleading 
586.34  information to the commissioner in connection with an 
586.35  application for a license or during an investigation.  An 
586.36  applicant whose application has been denied by the commissioner 
587.1   must be given notice of the denial.  Notice must be given by 
587.2   certified mail.  The notice must state the reasons the 
587.3   application was denied and must inform the applicant of the 
587.4   right to a contested case hearing under chapter 14 and Minnesota 
587.5   Rules, parts 1400.8550 to 1400.8612.  The applicant may appeal 
587.6   the denial by notifying the commissioner in writing by certified 
587.7   mail within 20 calendar days after receiving notice that the 
587.8   application was denied.  Section 245A.08 applies to hearings 
587.9   held to appeal the commissioner's denial of an application. 
587.10     Sec. 11.  Minnesota Statutes 2000, section 245A.06, is 
587.11  amended to read: 
587.12     245A.06 [CORRECTION ORDER AND FINES CONDITIONAL LICENSE.] 
587.13     Subdivision 1.  [CONTENTS OF CORRECTION ORDERS OR FINES AND 
587.14  CONDITIONAL LICENSES.] (a) If the commissioner finds that the 
587.15  applicant or license holder has failed to comply with an 
587.16  applicable law or rule and this failure does not imminently 
587.17  endanger the health, safety, or rights of the persons served by 
587.18  the program, the commissioner may issue a correction order and 
587.19  an order of conditional license to or impose a fine on the 
587.20  applicant or license holder.  When issuing a conditional 
587.21  license, the commissioner shall consider the nature, chronicity, 
587.22  or severity of the violation of law or rule and the effect of 
587.23  the violation on the health, safety, or rights of persons served 
587.24  by the program.  The correction order or fine conditional 
587.25  license must state: 
587.26     (1) the conditions that constitute a violation of the law 
587.27  or rule; 
587.28     (2) the specific law or rule violated; 
587.29     (3) the time allowed to correct each violation; and 
587.30     (4) if a fine is imposed, the amount of the fine license is 
587.31  made conditional, the length and terms of the conditional 
587.32  license. 
587.33     (b) Nothing in this section prohibits the commissioner from 
587.34  proposing a sanction as specified in section 245A.07, prior to 
587.35  issuing a correction order or fine conditional license. 
587.36     Subd. 2.  [RECONSIDERATION OF CORRECTION ORDERS.] If the 
588.1   applicant or license holder believes that the contents of the 
588.2   commissioner's correction order are in error, the applicant or 
588.3   license holder may ask the department of human services to 
588.4   reconsider the parts of the correction order that are alleged to 
588.5   be in error.  The request for reconsideration must be in writing 
588.6   and received by the commissioner within 20 calendar days after 
588.7   receipt of the correction order by the applicant or license 
588.8   holder, and: 
588.9      (1) specify the parts of the correction order that are 
588.10  alleged to be in error; 
588.11     (2) explain why they are in error; and 
588.12     (3) include documentation to support the allegation of 
588.13  error. 
588.14     A request for reconsideration does not stay any provisions 
588.15  or requirements of the correction order.  The commissioner's 
588.16  disposition of a request for reconsideration is final and not 
588.17  subject to appeal under chapter 14. 
588.18     Subd. 3.  [FAILURE TO COMPLY.] If the commissioner finds 
588.19  that the applicant or license holder has not corrected the 
588.20  violations specified in the correction order or conditional 
588.21  license, the commissioner may impose a fine and order other 
588.22  licensing sanctions pursuant to section 245A.07.  If a fine was 
588.23  imposed and the violation was not corrected, the commissioner 
588.24  may impose an additional fine.  This section does not prohibit 
588.25  the commissioner from seeking a court order, denying an 
588.26  application, or suspending, revoking, or making conditional the 
588.27  license in addition to imposing a fine. 
588.28     Subd. 4.  [NOTICE OF FINE CONDITIONAL LICENSE; 
588.29  RECONSIDERATION OF FINE CONDITIONAL LICENSE.] A license holder 
588.30  who is ordered to pay a fine If a license is made conditional, 
588.31  the license holder must be notified of the order by certified 
588.32  mail.  The notice must be mailed to the address shown on the 
588.33  application or the last known address of the license holder.  
588.34  The notice must state the reasons the fine conditional license 
588.35  was ordered and must inform the license holder of the 
588.36  responsibility for payment of fines in subdivision 7 and the 
589.1   right to request reconsideration of the fine conditional license 
589.2   by the commissioner.  The license holder may request 
589.3   reconsideration of the order to forfeit a fine of conditional 
589.4   license by notifying the commissioner by certified mail within 
589.5   20 calendar days after receiving the order.  The request must be 
589.6   in writing and must be received by the commissioner within ten 
589.7   calendar days after the license holder received the order.  The 
589.8   license holder may submit with the request for reconsideration 
589.9   written argument or evidence in support of the request for 
589.10  reconsideration.  A timely request for reconsideration shall 
589.11  stay forfeiture of the fine imposition of the terms of the 
589.12  conditional license until the commissioner issues a decision on 
589.13  the request for reconsideration.  The request for 
589.14  reconsideration must be in writing and: 
589.15     (1) specify the parts of the violation that are alleged to 
589.16  be in error; 
589.17     (2) explain why they are in error; 
589.18     (3) include documentation to support the allegation of 
589.19  error; and 
589.20     (4) any other information relevant to the fine or the 
589.21  amount of the fine. 
589.22     The commissioner's disposition of a request for 
589.23  reconsideration is final and not subject to appeal under chapter 
589.24  14. 
589.25     Subd. 5.  [FORFEITURE OF FINES.] The license holder shall 
589.26  pay the fines assessed on or before the payment date specified 
589.27  in the commissioner's order.  If the license holder fails to 
589.28  fully comply with the order, the commissioner shall issue a 
589.29  second fine or suspend the license until the license holder 
589.30  complies.  If the license holder receives state funds, the 
589.31  state, county, or municipal agencies or departments responsible 
589.32  for administering the funds shall withhold payments and recover 
589.33  any payments made while the license is suspended for failure to 
589.34  pay a fine.  
589.35     Subd. 5a.  [ACCRUAL OF FINES.] A license holder shall 
589.36  promptly notify the commissioner of human services, in writing, 
590.1   when a violation specified in an order to forfeit is corrected.  
590.2   If upon reinspection the commissioner determines that a 
590.3   violation has not been corrected as indicated by the order to 
590.4   forfeit, the commissioner may issue a second fine.  The 
590.5   commissioner shall notify the license holder by certified mail 
590.6   that a second fine has been assessed.  The license holder may 
590.7   request reconsideration of the second fine under the provisions 
590.8   of subdivision 4. 
590.9      Subd. 6.  [AMOUNT OF FINES.] Fines shall be assessed as 
590.10  follows: 
590.11     (1) the license holder shall forfeit $1,000 for each 
590.12  occurrence of violation of law or rule prohibiting the 
590.13  maltreatment of children or the maltreatment of vulnerable 
590.14  adults, including but not limited to corporal punishment, 
590.15  illegal or unauthorized use of physical, mechanical, or chemical 
590.16  restraints, and illegal or unauthorized use of aversive or 
590.17  deprivation procedures; 
590.18     (2) the license holder shall forfeit $200 for each 
590.19  occurrence of a violation of law or rule governing matters of 
590.20  health, safety, or supervision, including but not limited to the 
590.21  provision of adequate staff to child or adult ratios; and 
590.22     (3) the license holder shall forfeit $100 for each 
590.23  occurrence of a violation of law or rule other than those 
590.24  included in clauses (1) and (2). 
590.25     For the purposes of this section, "occurrence" means each 
590.26  violation identified in the commissioner's forfeiture order. 
590.27     Subd. 7.  [RESPONSIBILITY FOR PAYMENT OF FINES.] When a 
590.28  fine has been assessed, the license holder may not avoid payment 
590.29  by closing, selling, or otherwise transferring the licensed 
590.30  program to a third party.  In such an event, the license holder 
590.31  will be personally liable for payment.  In the case of a 
590.32  corporation, each controlling individual is personally and 
590.33  jointly liable for payment. 
590.34     Fines for child care centers must be assessed according to 
590.35  this section. 
590.36     Sec. 12.  Minnesota Statutes 2000, section 245A.07, is 
591.1   amended to read: 
591.2      245A.07 [SANCTIONS.] 
591.3      Subdivision 1.  [SANCTIONS AVAILABLE.] In addition to 
591.4   ordering forfeiture of fines making a license conditional under 
591.5   section 245A.06, the commissioner may propose to suspend, or 
591.6   revoke, or make conditional the license, impose a fine, or 
591.7   secure an injunction against the continuing operation of the 
591.8   program of a license holder who does not comply with applicable 
591.9   law or rule.  When applying sanctions authorized under this 
591.10  section, the commissioner shall consider the nature, chronicity, 
591.11  or severity of the violation of law or rule and the effect of 
591.12  the violation on the health, safety, or rights of persons served 
591.13  by the program. 
591.14     Subd. 2.  [IMMEDIATE SUSPENSION IN CASES OF IMMINENT DANGER 
591.15  TO HEALTH, SAFETY, OR RIGHTS TEMPORARY IMMEDIATE SUSPENSION.] If 
591.16  the license holder's actions or failure to comply with 
591.17  applicable law or rule has placed poses an imminent risk of harm 
591.18  to the health, safety, or rights of persons served by the 
591.19  program in imminent danger, the commissioner shall act 
591.20  immediately to temporarily suspend the license.  No state funds 
591.21  shall be made available or be expended by any agency or 
591.22  department of state, county, or municipal government for use by 
591.23  a license holder regulated under this chapter while a license is 
591.24  under immediate suspension.  A notice stating the reasons for 
591.25  the immediate suspension and informing the license holder of the 
591.26  right to a contested case an expedited hearing under chapter 
591.27  14 and Minnesota Rules, parts 1400.8550 to 1400.8612, must be 
591.28  delivered by personal service to the address shown on the 
591.29  application or the last known address of the license holder.  
591.30  The license holder may appeal an order immediately suspending a 
591.31  license.  The appeal of an order immediately suspending a 
591.32  license must be made in writing by certified mail and must be 
591.33  received by the commissioner within five calendar days after the 
591.34  license holder receives notice that the license has been 
591.35  immediately suspended.  A license holder and any controlling 
591.36  individual shall discontinue operation of the program upon 
592.1   receipt of the commissioner's order to immediately suspend the 
592.2   license. 
592.3      Subd. 2a.  [IMMEDIATE SUSPENSION EXPEDITED HEARING.] (a) 
592.4   Within five working days of receipt of the license holder's 
592.5   timely appeal, the commissioner shall request assignment of an 
592.6   administrative law judge.  The request must include a proposed 
592.7   date, time, and place of a hearing.  A hearing must be conducted 
592.8   by an administrative law judge within 30 calendar days of the 
592.9   request for assignment, unless an extension is requested by 
592.10  either party and granted by the administrative law judge for 
592.11  good cause.  The commissioner shall issue a notice of hearing by 
592.12  certified mail at least ten working days before the hearing.  
592.13  The scope of the hearing shall be limited solely to the issue of 
592.14  whether the temporary immediate suspension should remain in 
592.15  effect pending the commissioner's final order under section 
592.16  245A.08, regarding a licensing sanction issued under subdivision 
592.17  3 following the immediate suspension.  The burden of proof in 
592.18  expedited hearings under this subdivision shall be limited to 
592.19  the commissioner's demonstration that reasonable cause exists to 
592.20  believe that the license holder's actions or failure to comply 
592.21  with applicable law or rule poses an imminent risk of harm to 
592.22  the health, safety, or rights of persons served by the program.  
592.23     (b) The administrative law judge shall issue findings of 
592.24  fact, conclusions, and a recommendation within ten working days 
592.25  from the date of hearing.  The commissioner's final order shall 
592.26  be issued within ten working days from receipt of the 
592.27  recommendation of the administrative law judge.  Within 90 
592.28  calendar days after a final order affirming an immediate 
592.29  suspension, the commissioner shall make a determination 
592.30  regarding whether a final licensing sanction shall be issued 
592.31  under subdivision 3.  The license holder shall continue to be 
592.32  prohibited from operation of the program during this 90-day 
592.33  period. 
592.34     Subd. 3.  [LICENSE SUSPENSION, REVOCATION, DENIAL OR 
592.35  CONDITIONAL LICENSE FINE.] The commissioner may suspend, or 
592.36  revoke, make conditional, or deny a license, or impose a fine if 
593.1   an applicant or a license holder fails to comply fully with 
593.2   applicable laws or rules, or knowingly withholds relevant 
593.3   information from or gives false or misleading information to the 
593.4   commissioner in connection with an application for a license or 
593.5   during an investigation.  A license holder who has had a license 
593.6   suspended, revoked, or made conditional or has been ordered to 
593.7   pay a fine must be given notice of the action by certified 
593.8   mail.  The notice must be mailed to the address shown on the 
593.9   application or the last known address of the license holder.  
593.10  The notice must state the reasons the license was suspended, 
593.11  revoked, or made conditional a fine was ordered. 
593.12     (a) If the license was suspended or revoked, the notice 
593.13  must inform the license holder of the right to a contested case 
593.14  hearing under chapter 14 and Minnesota Rules, parts 1400.8550 to 
593.15  1400.8612.  The license holder may appeal an order suspending or 
593.16  revoking a license.  The appeal of an order suspending or 
593.17  revoking a license must be made in writing by certified mail and 
593.18  must be received by the commissioner within ten calendar days 
593.19  after the license holder receives notice that the license has 
593.20  been suspended or revoked.  
593.21     (b) If the license was made conditional, the notice must 
593.22  inform the license holder of the right to request a 
593.23  reconsideration by the commissioner.  The request for 
593.24  reconsideration must be made in writing by certified mail and 
593.25  must be received by the commissioner within ten calendar days 
593.26  after the license holder receives notice that the license has 
593.27  been made conditional.  The license holder may submit with the 
593.28  request for reconsideration written argument or evidence in 
593.29  support of the request for reconsideration.  The commissioner's 
593.30  disposition of a request for reconsideration is final and is not 
593.31  subject to appeal under chapter 14 (1) If the license holder was 
593.32  ordered to pay a fine, the notice must inform the license holder 
593.33  of the responsibility for payment of fines and the right to a 
593.34  contested case hearing under chapter 14 and Minnesota Rules, 
593.35  parts 1400.8550 to 1400.8612.  The appeal of an order to pay a 
593.36  fine must be made in writing by certified mail and must be 
594.1   received by the commissioner within ten calendar days after the 
594.2   license holder receives notice that the fine has been ordered.  
594.3      (2) The license holder shall pay the fines assessed on or 
594.4   before the payment date specified.  If the license holder fails 
594.5   to fully comply with the order, the commissioner may issue a 
594.6   second fine or suspend the license until the license holder 
594.7   complies.  If the license holder receives state funds, the 
594.8   state, county, or municipal agencies or departments responsible 
594.9   for administering the funds shall withhold payments and recover 
594.10  any payments made while the license is suspended for failure to 
594.11  pay a fine.  A timely appeal shall stay payment of the fine 
594.12  until the commissioner issues a final order.  
594.13     (3) A license holder shall promptly notify the commissioner 
594.14  of human services, in writing, when a violation specified in the 
594.15  order to forfeit a fine is corrected.  If upon reinspection the 
594.16  commissioner determines that a violation has not been corrected 
594.17  as indicated by the order to forfeit a fine, the commissioner 
594.18  may issue a second fine.  The commissioner shall notify the 
594.19  license holder by certified mail that a second fine has been 
594.20  assessed.  The license holder may appeal the second fine as 
594.21  provided under this subdivision. 
594.22     (4) Fines shall be assessed as follows:  the license holder 
594.23  shall forfeit $1,000 for each determination of maltreatment of a 
594.24  child under section 626.556 or the maltreatment of a vulnerable 
594.25  adult under section 626.557; the license holder shall forfeit 
594.26  $200 for each occurrence of a violation of law or rule governing 
594.27  matters of health, safety, or supervision, including, but not 
594.28  limited to, the provision of adequate staff-to-child or adult 
594.29  ratios and the failure to submit a background study; and the 
594.30  license holder shall forfeit $100 for each occurrence of a 
594.31  violation of law or rule other than those subject to a $1,000 or 
594.32  $200 fine above.  For purposes of this section, "occurrence" 
594.33  means each violation identified in the commissioner's fine order.
594.34     (5) When a fine has been assessed, the license holder may 
594.35  not avoid payment by closing, selling, or otherwise transferring 
594.36  the licensed program to a third party.  In such an event, the 
595.1   license holder will be personally liable for payment.  In the 
595.2   case of a corporation, each controlling individual is personally 
595.3   and jointly liable for payment. 
595.4      Subd. 4.  [ADOPTION AGENCY VIOLATIONS.] If a license holder 
595.5   licensed to place children for adoption fails to provide 
595.6   services as described in the disclosure form required by section 
595.7   259.37, subdivision 2, the sanctions under this section may be 
595.8   imposed. 
595.9      Sec. 13.  Minnesota Statutes 2000, section 245A.08, is 
595.10  amended to read: 
595.11     245A.08 [HEARINGS.] 
595.12     Subdivision 1.  [RECEIPT OF APPEAL; CONDUCT OF HEARING.] 
595.13  Upon receiving a timely appeal or petition pursuant to 
595.14  section 245A.04, subdivision 3c, 245A.05, or 245A.07, 
595.15  subdivision 3, the commissioner shall issue a notice of and 
595.16  order for hearing to the appellant under chapter 14 and 
595.17  Minnesota Rules, parts 1400.8550 to 1400.8612. 
595.18     Subd. 2.  [CONDUCT OF HEARINGS.] At any hearing provided 
595.19  for by section 245A.04, subdivision 3c, 245A.05, or 245A.07, 
595.20  subdivision 3, the appellant may be represented by counsel and 
595.21  has the right to call, examine, and cross-examine witnesses.  
595.22  The administrative law judge may require the presence of 
595.23  witnesses and evidence by subpoena on behalf of any party.  
595.24     Subd. 2a.  [CONSOLIDATED CONTESTED CASE HEARINGS FOR 
595.25  SANCTIONS BASED ON MALTREATMENT DETERMINATIONS AND 
595.26  DISQUALIFICATIONS.] (a) When a denial of a license under section 
595.27  245A.05 or a licensing sanction under section 245A.07, 
595.28  subdivision 3, is based on a disqualification for which 
595.29  reconsideration was requested and which was not set aside or was 
595.30  not rescinded under section 245A.04, subdivision 3b, the scope 
595.31  of the contested case hearing shall include the disqualification 
595.32  and the licensing sanction or denial of a license.  When the 
595.33  licensing sanction or denial of a license is based on a 
595.34  determination of maltreatment under section 626.556 or 626.557, 
595.35  or a disqualification for serious or recurring maltreatment 
595.36  which was not set aside or was not rescinded, the scope of the 
596.1   contested case hearing shall include the maltreatment 
596.2   determination, disqualification, and the licensing sanction or 
596.3   denial of a license.  In such cases, a fair hearing under 
596.4   section 256.045 shall not be conducted as provided for in 
596.5   sections 626.556, subdivision 10i, and 626.557, subdivision 9d. 
596.6      (b) In consolidated contested case hearings regarding 
596.7   sanctions issued in family child care, child foster care, and 
596.8   adult foster care, the county attorney shall defend the 
596.9   commissioner's orders in accordance with section 245A.16, 
596.10  subdivision 4. 
596.11     (c) The commissioner's final order under subdivision 5 is 
596.12  the final agency action on the issue of maltreatment and 
596.13  disqualification, including for purposes of subsequent 
596.14  background studies under section 245A.04, subdivision 3, and is 
596.15  the only administrative appeal of the final agency 
596.16  determination, specifically, including a challenge to the 
596.17  accuracy and completeness of data under section 13.04. 
596.18     (d) When consolidated hearings under this subdivision 
596.19  involve a licensing sanction based on a previous maltreatment 
596.20  determination for which the commissioner has issued a final 
596.21  order in an appeal of that determination under section 256.045, 
596.22  or the individual failed to exercise the right to appeal the 
596.23  previous maltreatment determination under section 626.556, 
596.24  subdivision 10i, or 626.557, subdivision 9d, the commissioner's 
596.25  order is conclusive on the issue of maltreatment.  In such 
596.26  cases, the scope of the administrative law judge's review shall 
596.27  be limited to the disqualification and the licensing sanction or 
596.28  denial of a license.  In the case of a denial of a license or a 
596.29  licensing sanction issued to a facility based on a maltreatment 
596.30  determination regarding an individual who is not the license 
596.31  holder or a household member, the scope of the administrative 
596.32  law judge's review includes the maltreatment determination.  
596.33     (e) If a maltreatment determination or disqualification, 
596.34  which was not set aside or was not rescinded under section 
596.35  245A.04, subdivision 3b, is the basis for a denial of a license 
596.36  under section 245A.05 or a licensing sanction under section 
597.1   245A.07, and the disqualified subject is an individual other 
597.2   than the license holder and upon whom a background study must be 
597.3   conducted under section 245A.04, subdivision 3, the hearings of 
597.4   all parties may be consolidated into a single contested case 
597.5   hearing upon consent of all parties and the administrative law 
597.6   judge.  
597.7      Subd. 3.  [BURDEN OF PROOF.] (a) At a hearing regarding 
597.8   suspension, immediate suspension, or revocation of a license for 
597.9   family day care or foster care a licensing sanction under 
597.10  section 245.07, including consolidated hearings under 
597.11  subdivision 2a, the commissioner may demonstrate reasonable 
597.12  cause for action taken by submitting statements, reports, or 
597.13  affidavits to substantiate the allegations that the license 
597.14  holder failed to comply fully with applicable law or rule.  If 
597.15  the commissioner demonstrates that reasonable cause existed, the 
597.16  burden of proof in hearings involving suspension, immediate 
597.17  suspension, or revocation of a family day care or foster care 
597.18  license shifts to the license holder to demonstrate by a 
597.19  preponderance of the evidence that the license holder was in 
597.20  full compliance with those laws or rules that the commissioner 
597.21  alleges the license holder violated, at the time that the 
597.22  commissioner alleges the violations of law or rules occurred. 
597.23     (b) At a hearing on denial of an application, the applicant 
597.24  bears the burden of proof to demonstrate by a preponderance of 
597.25  the evidence that the appellant has complied fully with sections 
597.26  245A.01 to 245A.15 this chapter and other applicable law or rule 
597.27  and that the application should be approved and a license 
597.28  granted. 
597.29     (c) At all other hearings under this section, the 
597.30  commissioner bears the burden of proof to demonstrate, by a 
597.31  preponderance of the evidence, that the violations of law or 
597.32  rule alleged by the commissioner occurred. 
597.33     Subd. 4.  [RECOMMENDATION OF ADMINISTRATIVE LAW JUDGE.] The 
597.34  administrative law judge shall recommend whether or not the 
597.35  commissioner's order should be affirmed.  The recommendations 
597.36  must be consistent with this chapter and the rules of the 
598.1   commissioner.  The recommendations must be in writing and 
598.2   accompanied by findings of fact and conclusions and must be 
598.3   mailed to the parties by certified mail to their last known 
598.4   addresses as shown on the license or application. 
598.5      Subd. 5.  [NOTICE OF THE COMMISSIONER'S FINAL ORDER.] After 
598.6   considering the findings of fact, conclusions, and 
598.7   recommendations of the administrative law judge, the 
598.8   commissioner shall issue a final order.  The commissioner shall 
598.9   consider, but shall not be bound by, the recommendations of the 
598.10  administrative law judge.  The appellant must be notified of the 
598.11  commissioner's final order as required by chapter 14 and 
598.12  Minnesota Rules, parts 1400.8550 to 1400.8612.  The notice must 
598.13  also contain information about the appellant's rights under 
598.14  chapter 14 and Minnesota Rules, parts 1400.8550 to 1400.8612.  
598.15  The institution of proceedings for judicial review of the 
598.16  commissioner's final order shall not stay the enforcement of the 
598.17  final order except as provided in section 14.65.  A license 
598.18  holder and each controlling individual of a license holder whose 
598.19  license has been revoked because of noncompliance with 
598.20  applicable law or rule must not be granted a license for five 
598.21  years following the revocation.  An applicant whose application 
598.22  was denied must not be granted a license for two years following 
598.23  a denial, unless the applicant's subsequent application contains 
598.24  new information which constitutes a substantial change in the 
598.25  conditions that caused the previous denial. 
598.26     Sec. 14.  Minnesota Statutes 2000, section 245A.16, 
598.27  subdivision 1, is amended to read: 
598.28     Subdivision 1.  [DELEGATION OF AUTHORITY TO AGENCIES.] (a) 
598.29  County agencies and private agencies that have been designated 
598.30  or licensed by the commissioner to perform licensing functions 
598.31  and activities under section 245A.04, to recommend denial of 
598.32  applicants under section 245A.05, to issue correction orders, to 
598.33  issue variances, and recommend fines a conditional license under 
598.34  section 245A.06, or to recommend suspending, or revoking, and 
598.35  making licenses probationary a license or issuing a fine under 
598.36  section 245A.07, shall comply with rules and directives of the 
599.1   commissioner governing those functions and with this section. 
599.2      (b) For family day care programs, the commissioner may 
599.3   authorize licensing reviews every two years after a licensee has 
599.4   had at least one annual review. 
599.5      Sec. 15.  Minnesota Statutes 2000, section 245B.08, 
599.6   subdivision 3, is amended to read: 
599.7      Subd. 3.  [SANCTIONS AVAILABLE.] Nothing in this 
599.8   subdivision shall be construed to limit the commissioner's 
599.9   authority to suspend, or revoke, or make conditional a license 
599.10  or issue a fine at any time a license under section 245A.07; 
599.11  make correction orders and require fines make a license 
599.12  conditional for failure to comply with applicable laws or rules 
599.13  under section 245A.06; or deny an application for license under 
599.14  section 245A.05. 
599.15     Sec. 16.  Minnesota Statutes 2000, section 256.045, 
599.16  subdivision 3, is amended to read: 
599.17     Subd. 3.  [STATE AGENCY HEARINGS.] (a) State agency 
599.18  hearings are available for the following:  (1) any person 
599.19  applying for, receiving or having received public assistance, 
599.20  medical care, or a program of social services granted by the 
599.21  state agency or a county agency or the federal Food Stamp Act 
599.22  whose application for assistance is denied, not acted upon with 
599.23  reasonable promptness, or whose assistance is suspended, 
599.24  reduced, terminated, or claimed to have been incorrectly paid; 
599.25  (2) any patient or relative aggrieved by an order of the 
599.26  commissioner under section 252.27; (3) a party aggrieved by a 
599.27  ruling of a prepaid health plan; (4) except as provided under 
599.28  chapter 245A, any individual or facility determined by a lead 
599.29  agency to have maltreated a vulnerable adult under section 
599.30  626.557 after they have exercised their right to administrative 
599.31  reconsideration under section 626.557; (5) any person whose 
599.32  claim for foster care payment according to a placement of the 
599.33  child resulting from a child protection assessment under section 
599.34  626.556 is denied or not acted upon with reasonable promptness, 
599.35  regardless of funding source; (6) any person to whom a right of 
599.36  appeal according to this section is given by other provision of 
600.1   law; (7) an applicant aggrieved by an adverse decision to an 
600.2   application for a hardship waiver under section 
600.3   256B.15; or (8) except as provided under chapter 245A, an 
600.4   individual or facility determined to have maltreated a minor 
600.5   under section 626.556, after the individual or facility has 
600.6   exercised the right to administrative reconsideration under 
600.7   section 626.556; or (9) except as provided under chapter 245A, 
600.8   an individual disqualified under section 245A.04, subdivision 
600.9   3d, on the basis of serious or recurring maltreatment; a 
600.10  preponderance of the evidence that the individual has committed 
600.11  an act or acts that meet the definition of any of the crimes 
600.12  listed in section 245A.04, subdivision 3d, paragraph (a), 
600.13  clauses (1) to (4); or for failing to make reports required 
600.14  under section 626.556, subdivision 3, or 626.557, subdivision 
600.15  3.  Hearings regarding a maltreatment determination under clause 
600.16  (4) or (8) and a disqualification under this clause in which the 
600.17  basis for a disqualification is serious or recurring 
600.18  maltreatment, which has not been set aside or rescinded under 
600.19  section 245A.04, subdivision 3b, shall be consolidated into a 
600.20  single fair hearing.  In such cases, the scope of review by the 
600.21  human services referee shall include both the maltreatment 
600.22  determination and the disqualification.  The failure to exercise 
600.23  the right to an administrative reconsideration shall not be a 
600.24  bar to a hearing under this section if federal law provides an 
600.25  individual the right to a hearing to dispute a finding of 
600.26  maltreatment.  Individuals and organizations specified in this 
600.27  section may contest the specified action, decision, or final 
600.28  disposition before the state agency by submitting a written 
600.29  request for a hearing to the state agency within 30 days after 
600.30  receiving written notice of the action, decision, or final 
600.31  disposition, or within 90 days of such written notice if the 
600.32  applicant, recipient, patient, or relative shows good cause why 
600.33  the request was not submitted within the 30-day time limit. 
600.34     The hearing for an individual or facility under clause 
600.35  (4) or, (8), or (9) is the only administrative appeal to the 
600.36  final agency determination specifically, including a challenge 
601.1   to the accuracy and completeness of data under section 13.04.  
601.2   Hearings requested under clause (4) apply only to incidents of 
601.3   maltreatment that occur on or after October 1, 1995.  Hearings 
601.4   requested by nursing assistants in nursing homes alleged to have 
601.5   maltreated a resident prior to October 1, 1995, shall be held as 
601.6   a contested case proceeding under the provisions of chapter 14.  
601.7   Hearings requested under clause (8) apply only to incidents of 
601.8   maltreatment that occur on or after July 1, 1997.  A hearing for 
601.9   an individual or facility under clause (8) is only available 
601.10  when there is no juvenile court or adult criminal action 
601.11  pending.  If such action is filed in either court while an 
601.12  administrative review is pending, the administrative review must 
601.13  be suspended until the judicial actions are completed.  If the 
601.14  juvenile court action or criminal charge is dismissed or the 
601.15  criminal action overturned, the matter may be considered in an 
601.16  administrative hearing. 
601.17     For purposes of this section, bargaining unit grievance 
601.18  procedures are not an administrative appeal. 
601.19     The scope of hearings involving claims to foster care 
601.20  payments under clause (5) shall be limited to the issue of 
601.21  whether the county is legally responsible for a child's 
601.22  placement under court order or voluntary placement agreement 
601.23  and, if so, the correct amount of foster care payment to be made 
601.24  on the child's behalf and shall not include review of the 
601.25  propriety of the county's child protection determination or 
601.26  child placement decision. 
601.27     (b) A vendor of medical care as defined in section 256B.02, 
601.28  subdivision 7, or a vendor under contract with a county agency 
601.29  to provide social services under section 256E.08, subdivision 4, 
601.30  is not a party and may not request a hearing under this section, 
601.31  except if assisting a recipient as provided in subdivision 4. 
601.32     (c) An applicant or recipient is not entitled to receive 
601.33  social services beyond the services included in the amended 
601.34  community social services plan developed under section 256E.081, 
601.35  subdivision 3, if the county agency has met the requirements in 
601.36  section 256E.081. 
602.1      (d) The commissioner may summarily affirm the county or 
602.2   state agency's proposed action without a hearing when the sole 
602.3   issue is an automatic change due to a change in state or federal 
602.4   law. 
602.5      Sec. 17.  Minnesota Statutes 2000, section 256.045, 
602.6   subdivision 3b, is amended to read: 
602.7      Subd. 3b.  [STANDARD OF EVIDENCE FOR MALTREATMENT AND 
602.8   DISQUALIFICATION HEARINGS.] The state human services referee 
602.9   shall determine that maltreatment has occurred if a 
602.10  preponderance of evidence exists to support the final 
602.11  disposition under sections 626.556 and 626.557.  For purposes of 
602.12  hearings regarding disqualification, the state human services 
602.13  referee shall affirm the proposed disqualification in an appeal 
602.14  under subdivision 3, paragraph (a), clause (9), if a 
602.15  preponderance of the evidence shows the individual has:  
602.16     (1) committed maltreatment under section 626.556 or 
602.17  626.557, which is serious or recurring; 
602.18     (2) committed an act or acts meeting the definition of any 
602.19  of the crimes listed in section 245A.04, subdivision 3d, 
602.20  paragraph (a), clauses (1) to (4); or 
602.21     (3) failed to make required reports under section 626.556 
602.22  or 626.557, for incidents in which:  
602.23     (i) the final disposition under section 626.556 or 626.557 
602.24  was substantiated maltreatment; and 
602.25     (ii) the maltreatment was recurring or serious; or 
602.26  substantiated serious or recurring maltreatment of a minor under 
602.27  section 626.556 or of a vulnerable adult under section 626.557 
602.28  for which there is a preponderance of evidence that the 
602.29  maltreatment occurred, and that the subject was responsible for 
602.30  the maltreatment.  If the disqualification is affirmed, the 
602.31  state human services referee shall determine whether the 
602.32  individual poses a risk of harm in accordance with the 
602.33  requirements of section 245A.04, subdivision 3b. 
602.34     The state human services referee shall recommend an order 
602.35  to the commissioner of health or human services, as applicable, 
602.36  who shall issue a final order.  The commissioner shall affirm, 
603.1   reverse, or modify the final disposition.  Any order of the 
603.2   commissioner issued in accordance with this subdivision is 
603.3   conclusive upon the parties unless appeal is taken in the manner 
603.4   provided in subdivision 7.  Except as provided under section 
603.5   245A.04, subdivisions 3b, paragraphs (e) and (f), and 3c, in any 
603.6   licensing appeal under chapter 245A and sections 144.50 to 
603.7   144.58 and 144A.02 to 144A.46, the commissioner's determination 
603.8   as to maltreatment is conclusive. 
603.9      Sec. 18.  Minnesota Statutes 2000, section 256.045, 
603.10  subdivision 4, is amended to read: 
603.11     Subd. 4.  [CONDUCT OF HEARINGS.] (a) All hearings held 
603.12  pursuant to subdivision 3, 3a, 3b, or 4a shall be conducted 
603.13  according to the provisions of the federal Social Security Act 
603.14  and the regulations implemented in accordance with that act to 
603.15  enable this state to qualify for federal grants-in-aid, and 
603.16  according to the rules and written policies of the commissioner 
603.17  of human services.  County agencies shall install equipment 
603.18  necessary to conduct telephone hearings.  A state human services 
603.19  referee may schedule a telephone conference hearing when the 
603.20  distance or time required to travel to the county agency offices 
603.21  will cause a delay in the issuance of an order, or to promote 
603.22  efficiency, or at the mutual request of the parties.  Hearings 
603.23  may be conducted by telephone conferences unless the applicant, 
603.24  recipient, former recipient, person, or facility contesting 
603.25  maltreatment objects.  The hearing shall not be held earlier 
603.26  than five days after filing of the required notice with the 
603.27  county or state agency.  The state human services referee shall 
603.28  notify all interested persons of the time, date, and location of 
603.29  the hearing at least five days before the date of the hearing.  
603.30  Interested persons may be represented by legal counsel or other 
603.31  representative of their choice, including a provider of therapy 
603.32  services, at the hearing and may appear personally, testify and 
603.33  offer evidence, and examine and cross-examine witnesses.  The 
603.34  applicant, recipient, former recipient, person, or facility 
603.35  contesting maltreatment shall have the opportunity to examine 
603.36  the contents of the case file and all documents and records to 
604.1   be used by the county or state agency at the hearing at a 
604.2   reasonable time before the date of the hearing and during the 
604.3   hearing.  In hearings under subdivision 3, paragraph (a), 
604.4   clauses (4) and, (8), and (9), either party may subpoena the 
604.5   private data relating to the investigation prepared by the 
604.6   agency under section 626.556 or 626.557 that is not otherwise 
604.7   accessible under section 13.04, provided the identity of the 
604.8   reporter may not be disclosed. 
604.9      (b) The private data obtained by subpoena in a hearing 
604.10  under subdivision 3, paragraph (a), clause (4) or, (8), or (9), 
604.11  must be subject to a protective order which prohibits its 
604.12  disclosure for any other purpose outside the hearing provided 
604.13  for in this section without prior order of the district court.  
604.14  Disclosure without court order is punishable by a sentence of 
604.15  not more than 90 days imprisonment or a fine of not more than 
604.16  $700, or both.  These restrictions on the use of private data do 
604.17  not prohibit access to the data under section 13.03, subdivision 
604.18  6.  Except for appeals under subdivision 3, paragraph (a), 
604.19  clauses (4), (5), and (8), and (9), upon request, the county 
604.20  agency shall provide reimbursement for transportation, child 
604.21  care, photocopying, medical assessment, witness fee, and other 
604.22  necessary and reasonable costs incurred by the applicant, 
604.23  recipient, or former recipient in connection with the appeal.  
604.24  All evidence, except that privileged by law, commonly accepted 
604.25  by reasonable people in the conduct of their affairs as having 
604.26  probative value with respect to the issues shall be submitted at 
604.27  the hearing and such hearing shall not be "a contested case" 
604.28  within the meaning of section 14.02, subdivision 3.  The agency 
604.29  must present its evidence prior to or at the hearing, and may 
604.30  not submit evidence after the hearing except by agreement of the 
604.31  parties at the hearing, provided the petitioner has the 
604.32  opportunity to respond. 
604.33     Sec. 19.  Minnesota Statutes 2000, section 626.556, 
604.34  subdivision 10i, is amended to read: 
604.35     Subd. 10i.  [ADMINISTRATIVE RECONSIDERATION OF FINAL 
604.36  DETERMINATION OF MALTREATMENT AND DISQUALIFICATION BASED ON 
605.1   SERIOUS OR RECURRING MALTREATMENT.] (a) Except as provided under 
605.2   paragraph (e), an individual or facility that the commissioner 
605.3   or a local social service agency determines has maltreated a 
605.4   child, or the child's designee, regardless of the determination, 
605.5   who contests the investigating agency's final determination 
605.6   regarding maltreatment, may request the investigating agency to 
605.7   reconsider its final determination regarding maltreatment.  The 
605.8   request for reconsideration must be submitted in writing to the 
605.9   investigating agency within 15 calendar days after receipt of 
605.10  notice of the final determination regarding maltreatment.  An 
605.11  individual who was determined to have maltreated a child under 
605.12  this section and who was disqualified on the basis of serious or 
605.13  recurring maltreatment under section 245A.04, subdivision 3d, 
605.14  may request reconsideration of the maltreatment determination 
605.15  and the disqualification.  The request for reconsideration of 
605.16  the maltreatment determination and the disqualification must be 
605.17  submitted within 30 calendar days of the individual's receipt of 
605.18  the notice of disqualification under section 245A.04, 
605.19  subdivision 3a. 
605.20     (b) Except as provided under paragraphs (e) and (f), if the 
605.21  investigating agency denies the request or fails to act upon the 
605.22  request within 15 calendar days after receiving the request for 
605.23  reconsideration, the person or facility entitled to a fair 
605.24  hearing under section 256.045 may submit to the commissioner of 
605.25  human services a written request for a hearing under that 
605.26  section. 
605.27     (c) If, as a result of the reconsideration, the 
605.28  investigating agency changes the final determination of 
605.29  maltreatment, that agency shall notify the parties specified in 
605.30  subdivisions 10b, 10d, and 10f. 
605.31     (d) Except as provided under paragraph (f), if an 
605.32  individual or facility contests the investigating agency's final 
605.33  determination regarding maltreatment by requesting a fair 
605.34  hearing under section 256.045, the commissioner of human 
605.35  services shall assure that the hearing is conducted and a 
605.36  decision is reached within 90 days of receipt of the request for 
606.1   a hearing.  The time for action on the decision may be extended 
606.2   for as many days as the hearing is postponed or the record is 
606.3   held open for the benefit of either party. 
606.4      (e) If an individual was disqualified under section 
606.5   245A.04, subdivision 3d, on the basis of a determination of 
606.6   maltreatment, which was serious or recurring, and the individual 
606.7   has requested reconsideration of the maltreatment determination 
606.8   under paragraph (a) and requested reconsideration of the 
606.9   disqualification under section 245A.04, subdivision 3b, 
606.10  reconsideration of the maltreatment determination and 
606.11  reconsideration of the disqualification shall be consolidated 
606.12  into a single reconsideration.  If an individual disqualified on 
606.13  the basis of a determination of maltreatment, which was serious 
606.14  or recurring requests a fair hearing under paragraph (b), the 
606.15  scope of the fair hearing shall include the maltreatment 
606.16  determination and the disqualification. 
606.17     (f) If a maltreatment determination or a disqualification 
606.18  based on serious or recurring maltreatment is the basis for a 
606.19  denial of a license under section 245A.05 or a licensing 
606.20  sanction under section 245A.07, the license holder has the right 
606.21  to a contested case hearing under chapter 14 and Minnesota 
606.22  Rules, parts 1400.8550 to 1400.8612.  As provided for under 
606.23  section 245A.08, subdivision 2a, the scope of the contested case 
606.24  hearing shall include the maltreatment determination, 
606.25  disqualification, and licensing sanction or denial of a 
606.26  license.  In such cases, a fair hearing regarding the 
606.27  maltreatment determination shall not be conducted under 
606.28  paragraph (b).  If the disqualified subject is an individual 
606.29  other than the license holder and upon whom a background study 
606.30  must be conducted under section 245A.04, subdivision 3, the 
606.31  hearings of all parties may be consolidated into a single 
606.32  contested case hearing upon consent of all parties and the 
606.33  administrative law judge. 
606.34     Sec. 20.  Minnesota Statutes 2000, section 626.557, 
606.35  subdivision 3, is amended to read: 
606.36     Subd. 3.  [TIMING OF REPORT.] (a) A mandated reporter who 
607.1   has reason to believe that a vulnerable adult is being or has 
607.2   been maltreated, or who has knowledge that a vulnerable adult 
607.3   has sustained a physical injury which is not reasonably 
607.4   explained shall immediately report the information to the common 
607.5   entry point.  If an individual is a vulnerable adult solely 
607.6   because the individual is admitted to a facility, a mandated 
607.7   reporter is not required to report suspected maltreatment of the 
607.8   individual that occurred prior to admission, unless: 
607.9      (1) the individual was admitted to the facility from 
607.10  another facility and the reporter has reason to believe the 
607.11  vulnerable adult was maltreated in the previous facility; or 
607.12     (2) the reporter knows or has reason to believe that the 
607.13  individual is a vulnerable adult as defined in section 626.5572, 
607.14  subdivision 21, clause (4).  
607.15     (b) A person not required to report under the provisions of 
607.16  this section may voluntarily report as described above.  
607.17     (c) Nothing in this section requires a report of known or 
607.18  suspected maltreatment, if the reporter knows or has reason to 
607.19  know that a report has been made to the common entry point. 
607.20     (d) Nothing in this section shall preclude a reporter from 
607.21  also reporting to a law enforcement agency.  
607.22     (e) A mandated reporter who knows or has reason to believe 
607.23  that an error under section 626.5572, subdivision 17, paragraph 
607.24  (c), clause (5), occurred must make a report under this 
607.25  subdivision.  If the reporter or facility at any time believes 
607.26  that an investigation by a lead agency will determine or should 
607.27  determine that the reported error was not neglect according to 
607.28  the criteria under section 626.5572, subdivision 17, paragraph 
607.29  (c), clause (5), the reporter or facility may provide to the 
607.30  common entry point or directly to the lead agency information 
607.31  explaining how the event meets the criteria under section 
607.32  626.5572, subdivision 17, paragraph (c), clause (5).  The lead 
607.33  agency shall consider this information when making an initial 
607.34  disposition of the report under subdivision 9c. 
607.35     Sec. 21.  Minnesota Statutes 2000, section 626.557, 
607.36  subdivision 9d, is amended to read: 
608.1      Subd. 9d.  [ADMINISTRATIVE RECONSIDERATION OF FINAL 
608.2   DISPOSITION OF MALTREATMENT AND DISQUALIFICATION BASED ON 
608.3   SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] (a) Except as 
608.4   provided under paragraph (e), any individual or facility which a 
608.5   lead agency determines has maltreated a vulnerable adult, or the 
608.6   vulnerable adult or an interested person acting on behalf of the 
608.7   vulnerable adult, regardless of the lead agency's determination, 
608.8   who contests the lead agency's final disposition of an 
608.9   allegation of maltreatment, may request the lead agency to 
608.10  reconsider its final disposition.  The request for 
608.11  reconsideration must be submitted in writing to the lead agency 
608.12  within 15 calendar days after receipt of notice of final 
608.13  disposition or, if the request is made by an interested person 
608.14  who is not entitled to notice, within 15 days after receipt of 
608.15  the notice by the vulnerable adult or the vulnerable adult's 
608.16  legal guardian.  An individual who was determined to have 
608.17  maltreated a vulnerable adult under this section and who was 
608.18  disqualified on the basis of serious or recurring maltreatment 
608.19  under section 245A.04, subdivision 3d, may request 
608.20  reconsideration of the maltreatment determination and the 
608.21  disqualification.  The request for reconsideration of the 
608.22  maltreatment determination and the disqualification must be 
608.23  submitted within 30 calendar days of the individual's receipt of 
608.24  the notice of disqualification under section 245A.04, 
608.25  subdivision 3a. 
608.26     (b) Except as provided under paragraphs (e) and (f), if the 
608.27  lead agency denies the request or fails to act upon the request 
608.28  within 15 calendar days after receiving the request for 
608.29  reconsideration, the person or facility entitled to a fair 
608.30  hearing under section 256.045, may submit to the commissioner of 
608.31  human services a written request for a hearing under that 
608.32  statute.  The vulnerable adult, or an interested person acting 
608.33  on behalf of the vulnerable adult, may request a review by the 
608.34  vulnerable adult maltreatment review panel under section 256.021 
608.35  if the lead agency denies the request or fails to act upon the 
608.36  request, or if the vulnerable adult or interested person 
609.1   contests a reconsidered disposition.  The lead agency shall 
609.2   notify persons who request reconsideration of their rights under 
609.3   this paragraph.  The request must be submitted in writing to the 
609.4   review panel and a copy sent to the lead agency within 30 
609.5   calendar days of receipt of notice of a denial of a request for 
609.6   reconsideration or of a reconsidered disposition.  The request 
609.7   must specifically identify the aspects of the agency 
609.8   determination with which the person is dissatisfied.  
609.9      (c) If, as a result of a reconsideration or review, the 
609.10  lead agency changes the final disposition, it shall notify the 
609.11  parties specified in subdivision 9c, paragraph (d). 
609.12     (d) For purposes of this subdivision, "interested person 
609.13  acting on behalf of the vulnerable adult" means a person 
609.14  designated in writing by the vulnerable adult to act on behalf 
609.15  of the vulnerable adult, or a legal guardian or conservator or 
609.16  other legal representative, a proxy or health care agent 
609.17  appointed under chapter 145B or 145C, or an individual who is 
609.18  related to the vulnerable adult, as defined in section 245A.02, 
609.19  subdivision 13. 
609.20     (e) If an individual was disqualified under section 
609.21  245A.04, subdivision 3d, on the basis of a determination of 
609.22  maltreatment, which was serious or recurring, and the individual 
609.23  has requested reconsideration of the maltreatment determination 
609.24  under paragraph (a) and reconsideration of the disqualification 
609.25  under section 245A.04, subdivision 3b, reconsideration of the 
609.26  maltreatment determination and requested reconsideration of the 
609.27  disqualification shall be consolidated into a single 
609.28  reconsideration.  If an individual who was disqualified on the 
609.29  basis of serious or recurring maltreatment requests a fair 
609.30  hearing under paragraph (b), the scope of the fair hearing shall 
609.31  include the maltreatment determination and the disqualification. 
609.32     (f) If a maltreatment determination or a disqualification 
609.33  based on serious or recurring maltreatment is the basis for a 
609.34  denial of a license under section 245A.05 or a licensing 
609.35  sanction under section 245A.07, the license holder has the right 
609.36  to a contested case hearing under chapter 14 and Minnesota 
610.1   Rules, parts 1400.8550 to 1400.8612.  As provided for under 
610.2   section 245A.08, the scope of the contested case hearing shall 
610.3   include the maltreatment determination, disqualification, and 
610.4   licensing sanction or denial of a license.  In such cases, a 
610.5   fair hearing shall not be conducted under paragraph (b).  If the 
610.6   disqualified subject is an individual other than the license 
610.7   holder and upon whom a background study must be conducted under 
610.8   section 245A.04, subdivision 3, the hearings of all parties may 
610.9   be consolidated into a single contested case hearing upon 
610.10  consent of all parties and the administrative law judge. 
610.11     (g) Until August 1, 2002, an individual or facility that 
610.12  was determined by the commissioner of human services or the 
610.13  commissioner of health to be responsible for neglect under 
610.14  section 626.5572, subdivision 17, after October 1, 1995, and 
610.15  before August 1, 2001, that believes that the finding of neglect 
610.16  does not meet an amended definition of neglect may request a 
610.17  reconsideration of the determination of neglect.  The 
610.18  commissioner of human services or the commissioner of health 
610.19  shall mail a notice to the last known address of individuals who 
610.20  are eligible to seek this reconsideration.  The request for 
610.21  reconsideration must state how the established findings no 
610.22  longer meet the elements of the definition of neglect.  The 
610.23  commissioner shall review the request for reconsideration and 
610.24  make a determination within 15 calendar days.  The 
610.25  commissioner's decision on this reconsideration is the final 
610.26  agency action. 
610.27     (1) For purposes of compliance with the data destruction 
610.28  schedule under section 626.557, subdivision 12b, paragraph (d), 
610.29  when a finding of substantiated maltreatment has been changed as 
610.30  a result of a reconsideration under this paragraph, the date of 
610.31  the original finding of a substantiated maltreatment must be 
610.32  used to calculate the destruction date. 
610.33     (2) For purposes of any background studies under section 
610.34  245A.04, when a determination of substantiated maltreatment has 
610.35  been changed as a result of a reconsideration under this 
610.36  paragraph, any prior disqualification of the individual under 
611.1   section 245A.04 that was based on this determination of 
611.2   maltreatment shall be rescinded, and for future background 
611.3   studies under section 245A.04 the commissioner must not use the 
611.4   previous determination of substantiated maltreatment as a basis 
611.5   for disqualification or as a basis for referring the 
611.6   individual's maltreatment history to a health-related licensing 
611.7   board under section 245A.04, subdivision 3d, paragraph (b). 
611.8      Sec. 22.  Minnesota Statutes 2000, section 626.5572, 
611.9   subdivision 17, is amended to read: 
611.10     Subd. 17.  [NEGLECT.] "Neglect" means:  
611.11     (a) The failure or omission by a caregiver to supply a 
611.12  vulnerable adult with care or services, including but not 
611.13  limited to, food, clothing, shelter, health care, or supervision 
611.14  which is: 
611.15     (1) reasonable and necessary to obtain or maintain the 
611.16  vulnerable adult's physical or mental health or safety, 
611.17  considering the physical and mental capacity or dysfunction of 
611.18  the vulnerable adult; and 
611.19     (2) which is not the result of an accident or therapeutic 
611.20  conduct. 
611.21     (b) The absence or likelihood of absence of care or 
611.22  services, including but not limited to, food, clothing, shelter, 
611.23  health care, or supervision necessary to maintain the physical 
611.24  and mental health of the vulnerable adult which a reasonable 
611.25  person would deem essential to obtain or maintain the vulnerable 
611.26  adult's health, safety, or comfort considering the physical or 
611.27  mental capacity or dysfunction of the vulnerable adult. 
611.28     (c) For purposes of this section, a vulnerable adult is not 
611.29  neglected for the sole reason that: 
611.30     (1) the vulnerable adult or a person with authority to make 
611.31  health care decisions for the vulnerable adult under sections 
611.32  144.651, 144A.44, chapter 145B, 145C, or 252A, or section 
611.33  253B.03, or 525.539 to 525.6199, refuses consent or withdraws 
611.34  consent, consistent with that authority and within the boundary 
611.35  of reasonable medical practice, to any therapeutic conduct, 
611.36  including any care, service, or procedure to diagnose, maintain, 
612.1   or treat the physical or mental condition of the vulnerable 
612.2   adult, or, where permitted under law, to provide nutrition and 
612.3   hydration parenterally or through intubation; this paragraph 
612.4   does not enlarge or diminish rights otherwise held under law by: 
612.5      (i) a vulnerable adult or a person acting on behalf of a 
612.6   vulnerable adult, including an involved family member, to 
612.7   consent to or refuse consent for therapeutic conduct; or 
612.8      (ii) a caregiver to offer or provide or refuse to offer or 
612.9   provide therapeutic conduct; or 
612.10     (2) the vulnerable adult, a person with authority to make 
612.11  health care decisions for the vulnerable adult, or a caregiver 
612.12  in good faith selects and depends upon spiritual means or prayer 
612.13  for treatment or care of disease or remedial care of the 
612.14  vulnerable adult in lieu of medical care, provided that this is 
612.15  consistent with the prior practice or belief of the vulnerable 
612.16  adult or with the expressed intentions of the vulnerable adult; 
612.17     (3) the vulnerable adult, who is not impaired in judgment 
612.18  or capacity by mental or emotional dysfunction or undue 
612.19  influence, engages in sexual contact with:  
612.20     (i) a person including a facility staff person when a 
612.21  consensual sexual personal relationship existed prior to the 
612.22  caregiving relationship; or 
612.23     (ii) a personal care attendant, regardless of whether the 
612.24  consensual sexual personal relationship existed prior to the 
612.25  caregiving relationship; or 
612.26     (4) an individual makes an error in the provision of 
612.27  therapeutic conduct to a vulnerable adult which:  (i) does not 
612.28  result in injury or harm which reasonably requires medical or 
612.29  mental health care; or, if it reasonably requires care, 
612.30     (5) an individual makes an error in the provision of 
612.31  therapeutic conduct to a vulnerable adult that results in injury 
612.32  or harm, which reasonably requires the care of a physician; and: 
612.33     (i) the necessary care is sought and provided in a timely 
612.34  fashion as dictated by the condition of the vulnerable adult; 
612.35  and the injury or harm that required care does not result in 
612.36  substantial acute, or chronic injury or illness, or permanent 
613.1   disability above and beyond the vulnerable adult's preexisting 
613.2   condition; 
613.3      (ii) is after receiving care, the health status of the 
613.4   vulnerable adult can be reasonably expected to be restored to 
613.5   the vulnerable adult's preexisting condition; 
613.6      (iii) the error is not part of a pattern of errors by the 
613.7   individual; 
613.8      (iv) if in a facility, the error is immediately reported as 
613.9   required under section 626.557, and recorded internally by the 
613.10  employee or person providing services in the facility in order 
613.11  to evaluate and identify corrective action; 
613.12     (v) if in a facility, the facility identifies and takes 
613.13  corrective action and implements measures designed to reduce the 
613.14  risk of further occurrence of this error and similar errors; and 
613.15     (iii) is (vi) if in a facility, the actions required under 
613.16  items (iv) and (v) are sufficiently documented for review and 
613.17  evaluation by the facility and any applicable licensing, 
613.18  certification, and ombudsman agency; and 
613.19     (iv) is not part of a pattern of errors by the individual. 
613.20     (d) Nothing in this definition requires a caregiver, if 
613.21  regulated, to provide services in excess of those required by 
613.22  the caregiver's license, certification, registration, or other 
613.23  regulation. 
613.24     (e) If the findings of an investigation by a lead agency 
613.25  result in a determination of substantiated maltreatment for the 
613.26  sole reason that the actions required of a facility under 
613.27  paragraph (c), clause (5), item (iv), (v), or (vi), were not 
613.28  taken, then the facility is subject to a correction order.  This 
613.29  must not alter the lead agency's determination of mitigating 
613.30  factors under section 626.557, subdivision 9c, paragraph (c). 
613.31     Sec. 23.  [FEDERAL LAW CHANGE REQUEST OR WAIVER.] 
613.32     The commissioner of health or human services, whichever is 
613.33  appropriate, shall pursue changes to federal law necessary to 
613.34  allow greater discretion on disciplinary activities of 
613.35  unlicensed health care workers, and apply for necessary federal 
613.36  waivers or approval that would allow for a set-aside process 
614.1   related to disqualifications for nurse aides in nursing homes by 
614.2   July 1, 2002. 
614.3      Sec. 24.  [WAIVER FROM FEDERAL RULES AND REGULATIONS.] 
614.4      By January 2002, the commissioner of health shall work with 
614.5   providers to examine federal rules and regulations prohibiting 
614.6   neglect, abuse, and financial exploitation of residents in 
614.7   licensed nursing facilities and shall apply for federal waivers 
614.8   to: 
614.9      (1) allow the use of Minnesota Statutes, section 626.5572, 
614.10  to control the identification and prevention of maltreatment of 
614.11  residents in licensed nursing facilities, rather than the 
614.12  definitions under federal rules and regulations; and 
614.13     (2) allow the use of Minnesota Statutes, sections 214.104, 
614.14  245A.04, and 626.557, to control the disqualification or 
614.15  discipline of any persons providing services to residents in 
614.16  licensed nursing facilities, rather than the nurse aide registry 
614.17  or other exclusionary provisions of federal rules and 
614.18  regulations. 
614.19     Sec. 25.  [EFFECTIVE DATES.] 
614.20     (a) Sections 20; 21, paragraph (g); and 22 are effective 
614.21  the day following final enactment. 
614.22     (b) Sections 1; 3; 5; 9; 23; and 24 are effective July 1, 
614.23  2001. 
614.24     (c) Sections 2; 4; 7; 8; 10 to 19; and 21, paragraphs (a), 
614.25  (b), (e), and (f), are effective January 1, 2002. 
614.26                             ARTICLE 14 
614.27                           MISCELLANEOUS 
614.28     Section 1.  [144.582] [PROHIBITING CERTAIN ACTIONS AGAINST 
614.29  NURSES.] 
614.30     Subdivision 1.  [PROHIBITED ACTIONS.] Except as provided in 
614.31  subdivision 2, a hospital or other entity licensed under 
614.32  sections 144.50 to 144.58, and its agent; a hospice licensed 
614.33  under section 144A.48, and its agent; or another health care 
614.34  facility licensed by the commissioner of health, and the 
614.35  facility's agent, is prohibited from taking action against a 
614.36  nurse solely on the grounds that the nurse fails to accept an 
615.1   assignment of additional consecutive hours at the facility in 
615.2   excess of an agreed upon, predetermined work shift, if the nurse 
615.3   declines to work additional hours because doing so may, in the 
615.4   nurse's judgment, jeopardize patient safety.  A nurse who fails 
615.5   to accept additional hours under this subdivision must document 
615.6   in writing why, in the nurse's judgment, the additional work 
615.7   hours may jeopardize patient safety.  This subdivision does not 
615.8   apply to a nursing facility, an intermediate care facility for 
615.9   persons with mental retardation, or a licensed boarding care 
615.10  facility. 
615.11     Subd. 2.  [EMERGENCY.] Notwithstanding subdivision 1, a 
615.12  nurse may be scheduled for duty or required to continue on duty 
615.13  for more than one normal work period in an emergency. 
615.14     Subd. 3.  [DEFINITIONS.] For purposes of this section, the 
615.15  following terms have the meanings given them: 
615.16     (1) "emergency" means a period when replacement staff are 
615.17  not able to report for duty for the next shift because of 
615.18  unusual circumstances such as a disease outbreak, adverse 
615.19  weather conditions, natural disasters, or, in the case of nurse 
615.20  supervisors, a strike; 
615.21     (2) "normal work period" means 12 or fewer consecutive 
615.22  hours consistent with a predetermined work shift; 
615.23     (3) "nurse" has the meaning given in section 148.171, 
615.24  subdivision 9; and 
615.25     (4) "taking action against" means discharging; 
615.26  disciplining; threatening; reporting to the board of nursing; 
615.27  discriminating against; or penalizing regarding compensation, 
615.28  terms, conditions, location, or privileges of employment. 
615.29     Subd. 4.  [NOTIFICATION.] Each health care facility subject 
615.30  to subdivision 1 shall post on each nursing unit in an area to 
615.31  which all employees have access the following statement:  "This 
615.32  facility is prohibited by law from taking any action against a 
615.33  nurse who fails to accept a request or order to work additional 
615.34  hours at the facility in excess of the predetermined work shift 
615.35  if, in the nurse's judgment, working the additional hours may 
615.36  jeopardize patient safety."  The facility shall also post 
616.1   adjacent to the statement the telephone number of the Minnesota 
616.2   department of health facility and provider compliance division. 
616.3      Sec. 2.  Minnesota Statutes 2000, section 148.212, is 
616.4   amended to read: 
616.5      148.212 [TEMPORARY PERMIT.] 
616.6      Upon receipt of the applicable licensure or reregistration 
616.7   fee and permit fee, and in accordance with rules of the board, 
616.8   the board may issue a nonrenewable temporary permit to practice 
616.9   professional or practical nursing to an applicant for licensure 
616.10  or reregistration who is not the subject of a pending 
616.11  investigation or disciplinary action, nor disqualified for any 
616.12  other reason, under the following circumstances: 
616.13     (a) The applicant for licensure by examination under 
616.14  section 148.211, subdivision 1, has graduated from an approved 
616.15  nursing program within the 60 days preceding board receipt of an 
616.16  affidavit of graduation or transcript and has been authorized by 
616.17  the board to write the licensure examination for the first time 
616.18  in the United States.  The permit holder must practice 
616.19  professional or practical nursing under the direct supervision 
616.20  of a registered nurse.  The permit is valid from the date of 
616.21  issue until the date the board takes action on the application 
616.22  or for 60 days whichever occurs first. 
616.23     (b) The applicant for licensure by endorsement under 
616.24  section 148.211, subdivision 2, is currently licensed to 
616.25  practice professional or practical nursing in another state, 
616.26  territory, or Canadian province.  The permit is valid from 
616.27  submission of a proper request until the date of board action on 
616.28  the application. 
616.29     (c) The applicant for licensure by endorsement under 
616.30  section 148.211, subdivision 2, or for reregistration under 
616.31  section 148.231, subdivision 5, is currently registered in a 
616.32  formal, structured refresher course or its equivalent for nurses 
616.33  that includes clinical practice. 
616.34     (d) The applicant for licensure by examination under 
616.35  section 148.211, subdivision 1, has been issued a Commission on 
616.36  Graduates of Foreign Nursing Schools certificate, has completed 
617.1   all requirements for licensure except the examination, and has 
617.2   been authorized by the board to write the licensure examination 
617.3   for the first time in the United States.  The permit holder must 
617.4   practice professional nursing under the direct supervision of a 
617.5   registered nurse.  The permit is valid from the date of issue 
617.6   until the date the board takes action on the application or for 
617.7   60 days, whichever occurs first. 
617.8      Sec. 3.  Minnesota Statutes 2000, section 148.263, 
617.9   subdivision 2, is amended to read: 
617.10     Subd. 2.  [INSTITUTIONS.] (a) The chief nursing executive 
617.11  or chief administrative officer of any hospital, clinic, prepaid 
617.12  medical plan, or other health care institution or organization 
617.13  located in this state shall report to the board any action taken 
617.14  by the institution or organization or any of its administrators 
617.15  or committees to revoke, suspend, limit, or condition a nurse's 
617.16  privilege to practice in the institution, or as part of the 
617.17  organization, any denial of privileges, any dismissal from 
617.18  employment, or any other disciplinary action.  The institution 
617.19  or organization shall also report the resignation of any nurse 
617.20  before the conclusion of any disciplinary proceeding, or before 
617.21  commencement of formal charges, but after the nurse had 
617.22  knowledge that formal charges were contemplated or in 
617.23  preparation.  The reporting described by this subdivision is 
617.24  required only if the action pertains to grounds for disciplinary 
617.25  action under section 148.261. 
617.26     (b) This subdivision does not require any entity to report 
617.27  the refusal of a nurse to accept an assignment of additional 
617.28  hours in excess of an agreed upon, predetermined work schedule. 
617.29     Sec. 4.  Minnesota Statutes 2000, section 148.284, is 
617.30  amended to read: 
617.31     148.284 [CERTIFICATION OF ADVANCED PRACTICE REGISTERED 
617.32  NURSES.] 
617.33     (a) No person shall practice advanced practice registered 
617.34  nursing or use any title, abbreviation, or other designation 
617.35  tending to imply that the person is an advanced practice 
617.36  registered nurse, clinical nurse specialist, nurse anesthetist, 
618.1   nurse-midwife, or nurse practitioner unless the person is 
618.2   certified for such advanced practice registered nursing by a 
618.3   national nurse certification organization. 
618.4      (b) Paragraph (a) does not apply to an advanced practice 
618.5   registered nurse who is within six months after completion of an 
618.6   advanced practice registered nurse course of study and is 
618.7   awaiting certification, provided that the person has not 
618.8   previously failed the certification examination.  
618.9      (c) An advanced practice registered nurse who has completed 
618.10  a formal course of study as an advanced practice registered 
618.11  nurse and has been certified by a national nurse certification 
618.12  organization prior to January 1, 1999, may continue to practice 
618.13  in the field of nursing in which the advanced practice 
618.14  registered nurse is practicing as of July 1, 1999, regardless of 
618.15  the type of certification held if the advanced practice 
618.16  registered nurse is not eligible for the proper certification. 
618.17     Sec. 5.  Minnesota Statutes 2000, section 214.001, is 
618.18  amended by adding a subdivision to read: 
618.19     Subd. 4.  [INFORMATION FROM COUNCIL OF HEALTH BOARDS.] The 
618.20  chair of a standing committee in either house of the legislature 
618.21  may request information from the council of health boards on 
618.22  proposals relating to the regulation of health occupations. 
618.23     Sec. 6.  Minnesota Statutes 2000, section 214.002, 
618.24  subdivision 1, is amended to read: 
618.25     Subdivision 1.  [WRITTEN REPORT.] Within 15 days of the 
618.26  introduction of a bill proposing new or expanded regulation of 
618.27  an occupation, the proponents of the new or expanded regulation 
618.28  shall submit a written report to the chair of the standing 
618.29  committee in each house of the legislature to which the bill was 
618.30  referred and to the council of health boards setting out the 
618.31  information required by this section.  If a committee chair 
618.32  requests that the report be submitted earlier, but no fewer than 
618.33  five days from introduction of the bill, the proponents shall 
618.34  comply with the request. 
618.35     Sec. 7.  Minnesota Statutes 2000, section 214.01, is 
618.36  amended by adding a subdivision to read: 
619.1      Subd. 1a.  [COUNCIL OF HEALTH BOARDS.] "Council of health 
619.2   boards" means a collaborative body established by the 
619.3   health-related licensing boards. 
619.4      Sec. 8.  [214.025] [COUNCIL OF HEALTH BOARDS.] 
619.5      The health-related licensing boards may establish a council 
619.6   of health boards consisting of representatives of the 
619.7   health-related licensing boards and the emergency medical 
619.8   services regulatory board.  When reviewing legislation or 
619.9   legislative proposals relating to the regulation of health 
619.10  occupations, the council shall include the commissioner of 
619.11  health or a designee. 
619.12     Sec. 9.  [214.105] [HEALTH-RELATED LICENSING BOARDS AND 
619.13  COMMISSIONER OF HEALTH; DEFAULT ON FEDERAL LOANS OR SERVICE 
619.14  OBLIGATIONS.] 
619.15     Subdivision 1.  [SUSPENSION OF LICENSE.] If the 
619.16  commissioner of health or a health-related licensing board 
619.17  receives a report from a federal agency certifying that a person 
619.18  licensed by the commissioner or board is in nonpayment, default, 
619.19  or breach of a repayment or service obligation under any federal 
619.20  educational loan, loan repayment, or service conditional 
619.21  scholarship program, the commissioner or board may suspend the 
619.22  person's license within 30 days of receipt of the report.  The 
619.23  commissioner or board shall consider the reasons for nonpayment, 
619.24  default, or breach of a repayment or service obligation and may 
619.25  not suspend the person's license in cases of total and permanent 
619.26  disability or long-term temporary disability lasting more than a 
619.27  year.  Prior to the suspension, the person must be given notice 
619.28  of the board's or commissioner's intended action and must be 
619.29  given the opportunity for a hearing before the board or 
619.30  commissioner before the suspension takes effect. 
619.31     Subd. 2.  [ISSUANCE, REINSTATEMENT, RENEWAL OF 
619.32  LICENSE.] The commissioner or a health-related licensing board 
619.33  shall not issue, reinstate, or renew a license that has been 
619.34  suspended under this section until the person whose license was 
619.35  suspended provides the commissioner or board with a written 
619.36  release issued by the federal agency that reported the person to 
620.1   the commissioner or board.  The written release must state that 
620.2   the person is making payments on the loan or satisfying the 
620.3   service requirements in accordance with an agreement approved by 
620.4   the federal agency.  If the person has continued to meet all 
620.5   other requirements for licensure during the period of license 
620.6   suspension, the commissioner or board must reinstate the 
620.7   person's license upon receipt of the written release. 
620.8      Sec. 10.  Minnesota Statutes 2000, section 245.98, is 
620.9   amended by adding a subdivision to read: 
620.10     Subd. 6.  [TREATMENT.] (a) The commissioner of human 
620.11  services shall develop and maintain a comprehensive program for 
620.12  the treatment of problem and pathological gambling.  This 
620.13  program should include primary treatment, crisis intervention, 
620.14  assessment and pretreatment services, transitional and 
620.15  after-care services, and intervention and support services, 
620.16  including financial, budget, and debt restitution counseling.  
620.17  The program should also provide services for family members and 
620.18  other victims whether or not the pathological or problem gambler 
620.19  is in treatment.  The program should encourage multidisciplinary 
620.20  providers and different programming models, including inpatient, 
620.21  residential, halfway houses, and treatment in chemical 
620.22  dependency programs and other institutions. 
620.23     (b) The commissioner of human services shall develop 
620.24  programs for gambling prevention, intervention, and treatment 
620.25  for underserved populations, including youth and seniors, and 
620.26  high-risk or vulnerable populations.  The commissioner shall 
620.27  consult with appropriate councils, representatives, and agency 
620.28  groups to gather information about specific populations and 
620.29  tailor appropriate gambling-related services for those 
620.30  populations. 
620.31     Sec. 11.  Minnesota Statutes 2000, section 245.982, is 
620.32  amended to read: 
620.33     245.982 [COMPULSIVE GAMBLING PROGRAM SUPPORT.] 
620.34     In order to address the problem of and compulsive gambling 
620.35  in this, the state, the compulsive gambling fund should attempt 
620.36  to assess the beneficiaries of gambling, on a percentage basis 
621.1   according to the revenue they receive from gambling, for the 
621.2   costs of programs to help problem gamblers and their families.  
621.3   In that light, the governor is requested to contact the chairs 
621.4   of the 11 tribal governments in this state and request a 
621.5   contribution of funds for the compulsive gambling program.  The 
621.6   governor should seek a total supplemental contribution of 
621.7   $643,000.  Funds received from the tribal governments in this 
621.8   state shall be deposited in the Indian gaming revolving 
621.9   account of Minnesota should make sure that its prevention and 
621.10  treatment efforts are sufficient to meet the needs of problem 
621.11  gamblers and their families.  Furthermore, the costs of 
621.12  compulsive gambling programs should be funded out of the lottery 
621.13  prize fund, and if available, with support from other gambling 
621.14  enterprises instead of with state general fund appropriations. 
621.15     Sec. 12.  Minnesota Statutes 2000, section 256I.05, 
621.16  subdivision 1d, is amended to read: 
621.17     Subd. 1d.  [SUPPLEMENTARY SERVICE RATES FOR CERTAIN 
621.18  FACILITIES SERVING PERSONS WITH MENTAL ILLNESS OR CHEMICAL 
621.19  DEPENDENCY.] Notwithstanding the provisions of subdivisions 1a 
621.20  and 1c for the fiscal year ending June 30, 1998, a county agency 
621.21  may negotiate a supplementary service rate in addition to the 
621.22  board and lodging rate for facilities licensed and registered by 
621.23  the Minnesota department of health under section 157.17 prior to 
621.24  December 31, 1996, if the facility meets the following criteria: 
621.25     (1) at least 75 percent of the residents have a primary 
621.26  diagnosis of mental illness, chemical dependency, or both, and 
621.27  have related special needs; 
621.28     (2) the facility provides 24-hour, on-site, year-round 
621.29  supportive services by qualified staff capable of intervention 
621.30  in a crisis of persons with late-state inebriety or mental 
621.31  illness who are vulnerable to abuse or neglect; 
621.32     (3) the services at the facility include, but are not 
621.33  limited to: 
621.34     (i) secure central storage of medication; 
621.35     (ii) reminders and monitoring of medication for 
621.36  self-administration; 
622.1      (iii) support for developing an individual medical and 
622.2   social service plan, updating the plan, and monitoring 
622.3   compliance with the plan; and 
622.4      (iv) assistance with setting up meetings, appointments, and 
622.5   transportation to access medical, chemical health, and mental 
622.6   health service providers; 
622.7      (4) each resident has a documented need for at least one of 
622.8   the services provided; 
622.9      (5) each resident has been offered an opportunity to apply 
622.10  for admission to a licensed residential treatment program for 
622.11  mental illness, chemical dependency, or both, have refused that 
622.12  offer, and the offer and their refusal has been documented to 
622.13  writing; and 
622.14     (6) the residents are not eligible for home and 
622.15  community-based services waivers because of their unique need 
622.16  for community support. 
622.17     The total supplementary service rate must not exceed 
622.18  $575 43.2 percent of the nonfederal share of the adult case mix 
622.19  class A rate established for purposes of the community 
622.20  alternatives for disabled individuals program. 
622.21     Sec. 13.  Minnesota Statutes 2000, section 256I.05, 
622.22  subdivision 1e, is amended to read: 
622.23     Subd. 1e.  [SUPPLEMENTARY RATE FOR CERTAIN FACILITIES.] 
622.24  Notwithstanding the provisions of subdivisions 1a and 1c, 
622.25  beginning July 1, 1999 2001, a county agency shall negotiate a 
622.26  supplementary rate in addition to the rate specified in 
622.27  subdivision 1, equal to 25 41 percent of the amount specified in 
622.28  subdivision 1a, including any legislatively authorized 
622.29  inflationary adjustments, for a group residential housing 
622.30  provider that: 
622.31     (1) is located in Hennepin county and has had a group 
622.32  residential housing contract with the county since June 1996; 
622.33     (2) operates in three separate locations a 56-bed facility, 
622.34  a 40-bed facility, and a 30-bed facility; and 
622.35     (3) serves a chemically dependent clientele, providing 24 
622.36  hours per day supervision and limiting a resident's maximum 
623.1   length of stay to 13 months out of a consecutive 24-month period.
623.2      Sec. 14.  Minnesota Statutes 2000, section 256I.05, is 
623.3   amended by adding a subdivision to read: 
623.4      Subd. 1f.  [SUPPLEMENTARY SERVICE RATE INCREASES ON OR 
623.5   AFTER JULY 1, 2001.] For rate years beginning on or after July 
623.6   1, 2001, a county agency may increase the supplementary service 
623.7   rate for recipients of assistance under section 256I.04 who 
623.8   reside in a residence that is licensed by the commissioner of 
623.9   health as a boarding care home but is not certified for purposes 
623.10  of the medical assistance program.  The supplementary service 
623.11  rate shall not exceed the nonfederal share of the statewide 
623.12  weighted average monthly medical assistance nursing facility 
623.13  payment rate for case mix class A. 
623.14     Sec. 15.  [299A.76] [SUICIDE STATISTICS.] 
623.15     (a) The commissioner of public safety shall not: 
623.16     (1) include any statistics on committing suicide or 
623.17  attempting suicide in any compilation of crime statistics 
623.18  published by the commissioner; or 
623.19     (2) label as a crime statistic, any data on committing 
623.20  suicide or attempting suicide. 
623.21     (b) This section does not apply to the crimes of aiding 
623.22  suicide under section 609.215, subdivision 1, or aiding 
623.23  attempted suicide under section 609.215, subdivision 2, or to 
623.24  statistics on a suicide directly related to the commission of a 
623.25  crime. 
623.26     Sec. 16.  Minnesota Statutes 2000, section 609.115, 
623.27  subdivision 9, is amended to read: 
623.28     Subd. 9.  [COMPULSIVE GAMBLING ASSESSMENT REQUIRED.] (a) If 
623.29  a person is convicted of theft under section 609.52, 
623.30  embezzlement of public funds under section 609.54, or forgery 
623.31  under section 609.625, 609.63, or 609.631, the probation officer 
623.32  shall determine in the report prepared under subdivision 1 
623.33  whether or not compulsive gambling contributed to the commission 
623.34  of the offense.  If so, the report shall contain the results of 
623.35  a compulsive gambling assessment conducted in accordance with 
623.36  this subdivision.  The probation officer shall make an 
624.1   appointment for the offender to undergo the assessment if so 
624.2   indicated. 
624.3      (b) The compulsive gambling assessment report must include 
624.4   a recommended level of treatment for the offender if the 
624.5   assessor concludes that the offender is in need of compulsive 
624.6   gambling treatment.  The assessment must be conducted by an 
624.7   assessor qualified under section 245.98, subdivision 2a, to 
624.8   perform these assessments or to provide compulsive gambling 
624.9   treatment.  An assessor providing a compulsive gambling 
624.10  assessment may not have any direct or shared financial interest 
624.11  or referral relationship resulting in shared financial gain with 
624.12  a treatment provider.  If an independent assessor is not 
624.13  available, the probation officer may use the services of an 
624.14  assessor with a financial interest or referral relationship as 
624.15  authorized under rules adopted by the commissioner of human 
624.16  services under section 245.98, subdivision 2a. 
624.17     (c) The commissioner of human services shall reimburse the 
624.18  assessor for the costs associated with a compulsive gambling 
624.19  assessment at a rate established by the commissioner up to a 
624.20  maximum of $100 $200 for each assessment.  The commissioner 
624.21  shall reimburse these costs after receiving written verification 
624.22  from the probation officer that the assessment was performed and 
624.23  found acceptable. 
624.24     Sec. 17.  Laws 1998, chapter 407, article 8, section 9, is 
624.25  amended to read: 
624.26     Sec. 9.  [PREVALENCE STUDY.] 
624.27     If funding is available, (a) The compulsive gambling 
624.28  program shall provide baseline prevalence studies to identify 
624.29  those at highest risk of developing a compulsive gambling 
624.30  problem, including a replication in 1999 of the 1994 adult 
624.31  prevalence survey the prevalence of pathological and problem 
624.32  gambling and, to the extent possible, the demographic and 
624.33  socioeconomic characteristics of these gamblers.  The study must 
624.34  be completed by January 15, 2003. 
624.35     (b) The compulsive gambling program shall also study the 
624.36  impact of problem gambling on Minnesota.  The studies may 
625.1   include the effect of gambling on children of parental gamblers, 
625.2   the prevalence of gambling in underserved populations and 
625.3   developmentally disabled populations, the impact of gambling on 
625.4   crime, and the prevalence of school-based gambling. 
625.5      Sec. 18.  Laws 1999, chapter 152, section 4, is amended to 
625.6   read: 
625.7      Sec. 4.  [REPORT.] 
625.8      The task force shall present a report recommending a new 
625.9   payment rate structure to the legislature by January 15, 2000, 
625.10  and shall make recommendations to the commissioner of human 
625.11  services regarding the implementation of the pilot project for 
625.12  the individualized payment rate structure, so the pilot project 
625.13  can be implemented by January 1, 2002, as required in section 
625.14  3.  The task force expires on March 15, 2000 December 30, 2003. 
625.15     Sec. 19.  Laws 1999, chapter 245, article 10, section 10, 
625.16  as amended by Laws 2000, chapter 488, article 9, section 30, is 
625.17  amended to read: 
625.18     Sec. 10.  [REPEALER.] 
625.19     (a) Minnesota Statutes 1998, section 256.973, is repealed 
625.20  effective June 30, 2002. 
625.21     (b) Laws 1997, chapter 225, article 6, section 8, is 
625.22  repealed. 
625.23     Sec. 20.  [DAY TRAINING AND HABILITATION PAYMENT STRUCTURE 
625.24  PILOT PROJECT.] 
625.25     Subdivision 1.  [INDIVIDUALIZED PAYMENT RATE 
625.26  STRUCTURE.] Notwithstanding Minnesota Statutes, sections 
625.27  252.451, subdivision 5; and 252.46; and Minnesota Rules, part 
625.28  9525.1290, subpart 1, items A and B, after federal waivers have 
625.29  been approved and the legislature has authorized the pilot 
625.30  project, the commissioner of human services shall initiate a 
625.31  pilot project for the individualized payment rate structure 
625.32  described in this section and section 3.  The pilot project 
625.33  shall include actual transfers of funds, not simulated 
625.34  transfers.  The pilot project may include all or some of the 
625.35  vendors in up to eight counties, with no more than two counties 
625.36  from the seven-county Minneapolis-St. Paul metropolitan area.  
626.1      Subd. 2.  [SUNSET.] The pilot project shall sunset upon 
626.2   implementation of a new statewide rate structure to be 
626.3   recommended by the task force described in subdivision 3, in its 
626.4   report to the legislature on December 1, 2003.  The rates of 
626.5   vendors participating in the pilot project must be modified to 
626.6   be consistent with the new statewide rate structure, if 
626.7   implemented. 
626.8      Subd. 3.  [TASK FORCE RESPONSIBILITIES.] The day training 
626.9   and habilitation task force established under Laws 1999, chapter 
626.10  152, section 4, shall evaluate at least six months of the pilot 
626.11  project authorized under subdivision 1, and by December 1, 2003, 
626.12  shall report to the legislature with recommendations regarding 
626.13  whether the pilot project individualized payment rate structure 
626.14  should be implemented statewide and with recommendations for any 
626.15  amendments that should be made before statewide implementation.  
626.16  These recommendations shall be made in a report to the chairs of 
626.17  the house health and human services policy and finance 
626.18  committees and the senate health and family security committee 
626.19  and finance division. 
626.20     Subd. 4.  [RATE SETTING.] (a) The rate structure under this 
626.21  section is intended to allow a county to authorize an individual 
626.22  rate for each client in the vendor's program based on the needs 
626.23  and expected outcomes of the individual client.  Rates shall be 
626.24  based on an authorized package of services for each individual 
626.25  over a typical time frame.  Rates may be established across 
626.26  multiple sites run by a single vendor. 
626.27     (b) With county concurrence, a vendor shall establish up to 
626.28  four levels of service, A through D, based on the intensity of 
626.29  services provided to an individual client of day training and 
626.30  habilitation services.  Service level A shall be the highest 
626.31  intensity of services, marked primarily, but not exclusively, by 
626.32  a one-to-one client-to-staff ratio.  Service level D shall be 
626.33  the lowest intensity of services.  The county shall document the 
626.34  vendor's description of the type and amount of services 
626.35  associated with each service level. 
626.36     (c) For each vendor, a county board shall establish a 
627.1   dollar value for one hour of service at each of the service 
627.2   levels defined in paragraph (b).  In establishing these values 
627.3   for existing vendors transitioning from the payment rate 
627.4   structure under Minnesota Statutes, section 252.46, subdivision 
627.5   1, the county board shall follow the formula and guidelines 
627.6   developed by the day training and habilitation task force under 
627.7   paragraph (e). 
627.8      (d) A vendor may elect to maintain a single transportation 
627.9   rate or may elect to establish up to five types of 
627.10  transportation services:  public transportation, public special 
627.11  transportation, nonambulatory transportation, out-of-service 
627.12  area transportation, and ambulatory transportation.  For vendors 
627.13  that elect to establish multiple transportation services, the 
627.14  county board shall establish a dollar value for a round trip on 
627.15  each type of transportation service offered through the vendor.  
627.16  With vendor concurrence, the county may also establish a uniform 
627.17  one-way trip value for some or all of the transportation service 
627.18  types. 
627.19     (e) In conducting the pilot project, the county board shall 
627.20  ensure that the vendor translates the vendor's existing program 
627.21  and transportation rates to the rates and values in the pilot 
627.22  project by using the conversion calculations for services and 
627.23  transportation approved by the day training and habilitation 
627.24  task force established under Laws 1999, chapter 152, and 
627.25  included in the task force's recommendations to the 
627.26  legislature.  The conversion calculation may be amended by the 
627.27  task force with the approval of the commissioner and any 
627.28  amendments shall become effective upon notification to the pilot 
627.29  project counties from the commissioner.  The calculation shall 
627.30  take the total reimbursement dollars available to the vendor and 
627.31  divide by the units of service expected at each service level 
627.32  and of each transportation type.  In determining the total 
627.33  reimbursement dollars available to a vendor, the vendor shall 
627.34  multiply the vendor's current per diem rate for both services 
627.35  and transportation, including any new rate increases, by the 
627.36  vendor's actual utilization for the year prior to implementation 
628.1   of the pilot project.  Vendors shall be allowed to allocate 
628.2   available reimbursement dollars between service and 
628.3   transportation before the vendor's service level and 
628.4   transportation values are calculated.  After translating its 
628.5   existing service and transportation rates to the service level 
628.6   and transportation values under the pilot, the vendor shall 
628.7   project its expected reimbursement income using the expected 
628.8   service and transportation packages for its existing clients, 
628.9   based on current service authorizations.  If the projected 
628.10  reimbursement income is less than the vendor would have received 
628.11  under the payment structure of Minnesota Statutes, section 
628.12  252.46, the vendor and the county, with the approval of the 
628.13  commissioner, shall adjust the vendor's service level and 
628.14  transportation values to eliminate the shortfall.  The 
628.15  commissioner shall report all adjustments to the day training 
628.16  and habilitation task force for consideration of possible 
628.17  modifications to the pilot project individualized payment rate 
628.18  structure.  
628.19     Subd. 5.  [INDIVIDUAL RATE AUTHORIZATION.] (a) As part of 
628.20  its annual authorization of services for each client under 
628.21  Minnesota Statutes, section 252.44, paragraph (a), clause (1), 
628.22  and Minnesota Rules, part 9525.0016, subpart 12, the county 
628.23  shall authorize and document a service package and a 
628.24  transportation package as follows: 
628.25     (1) the service package shall include the amount and type 
628.26  of services at each applicable service level to be provided to 
628.27  the client over a package period.  An individual client may 
628.28  receive services at multiple service levels over the course of 
628.29  the package period.  The service package rate shall be the sum 
628.30  of the amount of services at each level over the package period, 
628.31  multiplied by the dollar value for each service level; 
628.32     (2) the transportation package shall include the amount and 
628.33  type of transportation services to be provided to the client 
628.34  over the package period.  The transportation package rate shall 
628.35  be the sum of the amount of transportation services, multiplied 
628.36  by the dollar value associated with the type of transportation 
629.1   service authorized for the client; 
629.2      (3) the package period shall be established by the county, 
629.3   and may be one week, two weeks, or one month; and 
629.4      (4) the individual rate authorization may be reviewed and 
629.5   modified by the county at any time and must be reviewed and 
629.6   reauthorized by the county at least annually. 
629.7      (b) For purposes of the pilot project, a service day under 
629.8   Minnesota Statutes, sections 245B.06 and 252.44, includes any 
629.9   day in which a client receives any reimbursable service from a 
629.10  vendor or attends employment arranged by the vendor. 
629.11     Subd. 6.  [BILLING FOR SERVICES.] The vendor shall bill 
629.12  for, and shall be reimbursed for, the service package rate and 
629.13  transportation package rate for the package period as authorized 
629.14  by the county for each client in the vendor's program.  The 
629.15  length of the package period shall not affect the timing or 
629.16  frequency of vendors' submissions of claims for payment under 
629.17  the Medicaid Management Information System II (MMIS) or its 
629.18  successors. 
629.19     Subd. 7.  [NOTIFICATION OF CHANGE IN CLIENT NEEDS.] The 
629.20  vendor shall notify an individual client's case manager if the 
629.21  vendor has knowledge of a material change in the client's needs 
629.22  that may indicate a need for a change in service authorization.  
629.23  Factors that would require such notice include, but are not 
629.24  limited to, significant changes in medical status, residential 
629.25  placement, attendance patterns, behavioral needs, or skill 
629.26  functioning.  The vendor shall notify the case manager as soon 
629.27  as possible but no later than 30 calendar days after becoming 
629.28  aware of the change in needs.  The service authorization for the 
629.29  client shall not change until the county authorizes a new 
629.30  service and transportation package for the client in accordance 
629.31  with the provisions in Minnesota Statutes, section 256B.092. 
629.32     Subd. 8.  [COUNTY BOARD RESPONSIBILITIES.] For each vendor 
629.33  with rates established under this section, the county board 
629.34  shall document the vendor's description of the type and amount 
629.35  of services associated with each service level, the vendor's 
629.36  service level values, the vendor's transportation values, and 
630.1   the package period that will be used to determine the rate for 
630.2   each individual client.  The county shall establish a package 
630.3   period of one week, two weeks, or one month. 
630.4      Sec. 21.  [DEAF/BLIND SERVICES STUDY.] 
630.5      The department of human services shall convene and lead an 
630.6   interagency workgroup for the purpose of studying and developing 
630.7   recommendations regarding: 
630.8      (1) how the state can most effectively and efficiently use 
630.9   state appropriations and other resources to provide needed 
630.10  services to deaf/blind children, adults, and their families; 
630.11     (2) how state agencies can work together to enhance and 
630.12  ensure that a seamless service delivery system exists across 
630.13  agency lines for persons who are deaf/blind; and 
630.14     (3) how other existing barriers to the effective and 
630.15  efficient delivery of service for deaf/blind Minnesotans can be 
630.16  removed. 
630.17     The workgroup shall include representatives from the 
630.18  departments of human services, economic security, children, 
630.19  families, and learning; the state academy for the deaf; the 
630.20  state academy for the blind; the Minnesota commission serving 
630.21  deaf and hard-of-hearing; a consumer who is deaf/blind; a parent 
630.22  of a deaf/blind child from the metro area and a parent of a 
630.23  deaf/blind child from greater Minnesota; and anyone else that 
630.24  the workgroup finds necessary to complete its work. 
630.25     The departments of human services, economic security, and 
630.26  children, families, and learning shall share equally in the 
630.27  costs of the workgroup. 
630.28     The workgroup shall report its findings and recommendations 
630.29  to the legislature by February 1, 2002. 
630.30     Sec. 22.  [ESTABLISHMENT OF NEW FEE FOR COMPULSIVE GAMBLING 
630.31  TREATMENT PROVIDERS.] 
630.32     The commissioner of human services, in consultation with 
630.33  compulsive gambling treatment providers, shall establish a fee 
630.34  structure, which increases the rates provided for purposes of 
630.35  gambling treatment.  The fee structure must reflect the real 
630.36  costs associated with providing treatment services and should be 
631.1   sufficient to attract new and retain existing compulsive 
631.2   gambling treatment providers.  The new rate structure must be 
631.3   implemented no later than October 1, 2001. 
631.4      Sec. 23.  [PROGRAM OPTIONS FOR CERTAIN PERSONS WITH 
631.5   DEVELOPMENTAL DISABILITIES.] 
631.6      (a) The commissioner of human services shall ensure that 
631.7   services continue to be available to persons with developmental 
631.8   disabilities who were covered by social services supplemental 
631.9   grants prior to July 1, 2001.  Services shall be provided in 
631.10  priority order as follows: 
631.11     (1) to the extent possible, the commissioner shall 
631.12  establish for these persons targeted slots under the home and 
631.13  community-based waivered services program for persons with 
631.14  mental retardation or related conditions; 
631.15     (2) those persons who cannot be accommodated under clause 
631.16  (1) shall, to the extent possible, be provided services through 
631.17  other home and community-based waivered services programs; 
631.18     (3) notwithstanding Minnesota Statutes, section 256I.04, 
631.19  subdivision 2a, those persons who cannot be served by a waiver 
631.20  program under clause (1) or (2) shall be eligible for services 
631.21  under Minnesota Statutes, chapter 256I; and 
631.22     (4) any remaining persons shall continue to receive 
631.23  services through community social services supplemental grants 
631.24  to the affected counties. 
631.25     (b) This section applies only to individuals receiving 
631.26  services under social services supplemental grants as of June 
631.27  30, 2001. 
631.28     Sec. 24.  [STUDY OF DAY TRAINING AND HABILITATION VENDOR 
631.29  RATES.] 
631.30     The commissioner shall identify the vendors with the lowest 
631.31  rates or underfunded programs in the state and make 
631.32  recommendations to reconcile the discrepancies prior to the 
631.33  implementation of the individualized payment rate structure. 
631.34     Sec. 25.  [FEDERAL APPROVAL.] 
631.35     The commissioner shall seek any amendments to the state 
631.36  Medicaid plan and any waivers necessary to permit implementation 
632.1   of the day training and habilitation individualized payment 
632.2   structure pilot project within the timelines specified.  When 
632.3   the necessary waivers are approved by the federal government, 
632.4   the commissioner shall obtain authorization from the legislature 
632.5   before implementing the pilot project. 
632.6      Sec. 26. [REPEALER.] 
632.7      Minnesota Statutes 2000, section 256E.06, subdivision 2b, 
632.8   is repealed. 
632.9      Sec. 27.  [EFFECTIVE DATE.] 
632.10     The repealer in section 26 is effective July 1, 2003. 
632.11                             ARTICLE 15 
632.12                           APPROPRIATIONS 
632.13  Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
632.14     The sums shown in the columns marked "APPROPRIATIONS" are 
632.15  appropriated from the general fund, or any other fund named, to 
632.16  the agencies and for the purposes specified in the following 
632.17  sections of this article, to be available for the fiscal years 
632.18  indicated for each purpose.  The figures "2002" and "2003" where 
632.19  used in this article, mean that the appropriation or 
632.20  appropriations listed under them are available for the fiscal 
632.21  year ending June 30, 2002, or June 30, 2003, respectively.  
632.22  Where a dollar amount appears in parentheses, it means a 
632.23  reduction of an appropriation.  
632.24                          SUMMARY BY FUND 
632.25  APPROPRIATIONS                                      BIENNIAL
632.26                            2002          2003           TOTAL
632.27  General          $3,194,073,000 $3,538,650,000 $6,732,723,000
632.28  State Government
632.29  Special Revenue      38,548,000     40,671,000     79,219,000
632.30  Health Care
632.31  Access              233,995,000    308,027,000    542,022,000
632.32  Federal TANF        295,060,000    302,841,000    597,901,000
632.33  Lottery Cash Flow     4,090,000      3,540,000      7,630,000
632.34  TOTAL            $3,765,766,000 $4,193,729,000 $7,959,495,000
632.35                                             APPROPRIATIONS 
632.36                                         Available for the Year 
632.37                                             Ending June 30 
632.38                                            2002         2003 
632.39  Sec. 2.  COMMISSIONER OF 
633.1   HUMAN SERVICES 
633.2   Subdivision 1.  Total 
633.3   Appropriation                     $3,587,027,000 $4,014,723,000
633.4                 Summary by Fund
633.5   General           3,073,837,000 3,413,688,000
633.6   State Government
633.7   Special Revenue         520,000       534,000
633.8   Health Care 
633.9   Access              222,060,000   300,660,000
633.10  Federal TANF        288,520,000   296,301,000
633.11  Lottery Cash Flow     4,090,000     3,540,000
633.12  TOTAL             3,587,027,000 4,014,723,000
633.13  [RECEIPTS FOR SYSTEMS PROJECTS.] 
633.14  Appropriations and federal receipts for 
633.15  information system projects for MAXIS, 
633.16  PRISM, MMIS, and SSIS must be deposited 
633.17  in the state system account authorized 
633.18  in Minnesota Statutes, section 
633.19  256.014.  Money appropriated for 
633.20  computer projects approved by the 
633.21  Minnesota office of technology, funded 
633.22  by the legislature, and approved by the 
633.23  commissioner of finance may be 
633.24  transferred from one project to another 
633.25  and from development to operations as 
633.26  the commissioner of human services 
633.27  considers necessary.  Any unexpended 
633.28  balance in the appropriation for these 
633.29  projects does not cancel but is 
633.30  available for ongoing development and 
633.31  operations. 
633.32  [GIFTS.] Notwithstanding Minnesota 
633.33  Statutes, chapter 7, the commissioner 
633.34  may accept on behalf of the state 
633.35  additional funding from sources other 
633.36  than state funds for the purpose of 
633.37  financing the cost of assistance 
633.38  program grants or nongrant 
633.39  administration.  All additional funding 
633.40  is appropriated to the commissioner for 
633.41  use as designated by the grantor of 
633.42  funding. 
633.43  [SYSTEMS CONTINUITY.] In the event of 
633.44  disruption of technical systems or 
633.45  computer operations, the commissioner 
633.46  may use available grant appropriations 
633.47  to ensure continuity of payments for 
633.48  maintaining the health, safety, and 
633.49  well-being of clients served by 
633.50  programs administered by the department 
633.51  of human services.  Grant funds must be 
633.52  used in a manner consistent with the 
633.53  original intent of the appropriation. 
633.54  [SPECIAL REVENUE FUND INFORMATION.] On 
633.55  December 1, 2001, and December 1, 2002, 
633.56  the commissioner shall provide the 
633.57  chairs of the house health and human 
633.58  services finance committee and the 
633.59  senate health, human services, and 
634.1   corrections budget division with 
634.2   detailed fund balance information for 
634.3   each special revenue fund account.  
634.4   [FEDERAL ADMINISTRATIVE REIMBURSEMENT.] 
634.5   Federal administrative reimbursement 
634.6   resulting from MinnesotaCare outreach 
634.7   grants and the Minnesota senior health 
634.8   options project are appropriated to the 
634.9   commissioner for these activities. 
634.10  [NONFEDERAL SHARE TRANSFERS.] The 
634.11  nonfederal share of activities for 
634.12  which federal administrative 
634.13  reimbursement is appropriated to the 
634.14  commissioner may be transferred to the 
634.15  special revenue fund. 
634.16  [MAJOR SYSTEMS ONE-TIME TRANSFER.] 
634.17  $29,000,000 of funds available in the 
634.18  state systems account authorized in 
634.19  Minnesota Statutes, section 256.014, is 
634.20  transferred in fiscal year 2002 to the 
634.21  general fund. 
634.22  [TANF FUNDS APPROPRIATED TO OTHER 
634.23  ENTITIES.] Any expenditures from the 
634.24  TANF block grant shall be expended in 
634.25  accordance with the requirements and 
634.26  limitations of part A of title IV of 
634.27  the Social Security Act, as amended, 
634.28  and any other applicable federal 
634.29  requirement or limitation.  Prior to 
634.30  any expenditure of these funds, the 
634.31  commissioner shall assure that funds 
634.32  are expended in compliance with the 
634.33  requirements and limitations of federal 
634.34  law and that any reporting requirements 
634.35  of federal law are met.  It shall be 
634.36  the responsibility of any entity to 
634.37  which these funds are appropriated to 
634.38  implement a memorandum of understanding 
634.39  with the commissioner that provides the 
634.40  necessary assurance of compliance prior 
634.41  to any expenditure of funds.  The 
634.42  commissioner shall receipt TANF funds 
634.43  appropriated to other state agencies 
634.44  and coordinate all related interagency 
634.45  accounting transactions necessary to 
634.46  implement these appropriations.  
634.47  Unexpended TANF funds appropriated to 
634.48  any state, local, or nonprofit entity 
634.49  cancel at the end of the state fiscal 
634.50  year unless appropriating language 
634.51  permits otherwise. 
634.52  [TANF FUNDS TRANSFERRED TO OTHER 
634.53  FEDERAL GRANTS.] The commissioner must 
634.54  authorize transfers from TANF to other 
634.55  federal block grants so that funds are 
634.56  available to meet the annual 
634.57  expenditure needs as appropriated.  
634.58  Transfers may be authorized prior to 
634.59  the expenditure year with the agreement 
634.60  of the receiving entity.  Transferred 
634.61  funds must be expended in the year for 
634.62  which the funds were appropriated 
634.63  unless appropriation language permits 
634.64  otherwise.  In accelerating transfer 
634.65  authorizations, the commissioner must 
634.66  aim to preserve the future potential 
635.1   transfer capacity from TANF to other 
635.2   block grants. 
635.3   [TANF MAINTENANCE OF EFFORT.] (a) In 
635.4   order to meet the basic maintenance of 
635.5   effort (MOE) requirements of the TANF 
635.6   block grant specified under Code of 
635.7   Federal Regulations, title 45, section 
635.8   263.1, the commissioner may only report 
635.9   nonfederal money expended for allowable 
635.10  activities listed in the following 
635.11  clauses as TANF MOE expenditures: 
635.12  (1) MFIP cash and food assistance 
635.13  benefits under Minnesota Statutes, 
635.14  chapter 256J; 
635.15  (2) the child care assistance programs 
635.16  under Minnesota Statutes, sections 
635.17  119B.03 and 119B.05, and county child 
635.18  care administrative costs under 
635.19  Minnesota Statutes, section 119B.15; 
635.20  (3) state and county MFIP 
635.21  administrative costs under Minnesota 
635.22  Statutes, chapters 256J and 256K; 
635.23  (4) state, county, and tribal MFIP 
635.24  employment services under Minnesota 
635.25  Statutes, chapters 256J and 256K; and 
635.26  (5) expenditures made on behalf of 
635.27  noncitizen MFIP recipients who qualify 
635.28  for the medical assistance without 
635.29  federal financial participation program 
635.30  under Minnesota Statutes, section 
635.31  256B.06, subdivision 4, paragraphs (d), 
635.32  (e), and (j). 
635.33  (b) The commissioner shall ensure that 
635.34  sufficient qualified nonfederal 
635.35  expenditures are made each year to meet 
635.36  the state's TANF MOE requirements.  For 
635.37  the activities listed in paragraph (a), 
635.38  clauses (2) to (5), the commissioner 
635.39  may only report expenditures that are 
635.40  excluded from the definition of 
635.41  assistance under Code of Federal 
635.42  Regulations, title 45, section 260.31. 
635.43  (c) By August 31 of each year, the 
635.44  commissioner shall make a preliminary 
635.45  calculation to determine the likelihood 
635.46  that the state will meet its annual 
635.47  federal work participation requirement 
635.48  under Code of Federal Regulations, 
635.49  title 45, sections 261.21 and 261.23, 
635.50  after adjustment for any caseload 
635.51  reduction credit under Code of Federal 
635.52  Regulations, title 45, section 261.41.  
635.53  If the commissioner determines that the 
635.54  state will meet its federal work 
635.55  participation rate for the federal 
635.56  fiscal year ending that September, the 
635.57  commissioner may reduce the expenditure 
635.58  under paragraph (a), clause (1), to the 
635.59  extent allowed under Code of Federal 
635.60  Regulations, title 45, section 
635.61  263.1(a)(2). 
635.62  (d) For fiscal years beginning with 
636.1   state fiscal year 2003, the 
636.2   commissioner shall assure that the 
636.3   maintenance of effort used by the 
636.4   commissioner of finance for the 
636.5   February and November forecasts 
636.6   required under Minnesota Statutes, 
636.7   section 16A.103, contains expenditures 
636.8   under paragraph (a), clause (1), equal 
636.9   to at least 25 percent of the total 
636.10  required under Code of Federal 
636.11  Regulations, title 45, section 263.1. 
636.12  (e) If nonfederal expenditures for the 
636.13  programs and purposes listed in 
636.14  paragraph (a) are insufficient to meet 
636.15  the state's TANF MOE requirements, the 
636.16  commissioner shall recommend additional 
636.17  allowable sources of nonfederal 
636.18  expenditures to the legislature, if the 
636.19  legislature is or will be in session to 
636.20  take action to specify additional 
636.21  sources of nonfederal expenditures for 
636.22  TANF MOE before a federal penalty is 
636.23  imposed.  The commissioner shall 
636.24  otherwise provide notice to the 
636.25  legislative commission on planning and 
636.26  fiscal policy under paragraph (g). 
636.27  (f) If the commissioner uses authority 
636.28  granted under Laws 1999, chapter 245, 
636.29  article 1, section 10, or similar 
636.30  authority granted by a subsequent 
636.31  legislature, to meet the state's TANF 
636.32  MOE requirements in a reporting period, 
636.33  the commissioner shall inform the 
636.34  chairs of the appropriate legislative 
636.35  committees about all transfers made 
636.36  under that authority for this purpose.  
636.37  (g) If the commissioner determines that 
636.38  nonfederal expenditures for the 
636.39  programs under paragraph (a), are 
636.40  insufficient to meet TANF MOE 
636.41  expenditure requirements, and if the 
636.42  legislature is not or will not be in 
636.43  session to take timely action to avoid 
636.44  a federal penalty, the commissioner may 
636.45  report nonfederal expenditures from 
636.46  other allowable sources as TANF MOE 
636.47  expenditures after the requirements of 
636.48  this paragraph are met.  The 
636.49  commissioner may report nonfederal 
636.50  expenditures in addition to those 
636.51  specified under paragraph (a) as 
636.52  nonfederal TANF MOE expenditures, but 
636.53  only ten days after the commissioner of 
636.54  finance has first submitted the 
636.55  commissioner's recommendations for 
636.56  additional allowable sources of 
636.57  nonfederal TANF MOE expenditures to the 
636.58  members of the legislative commission 
636.59  on planning and fiscal policy for their 
636.60  review. 
636.61  (h) The commissioner of finance shall 
636.62  not incorporate any changes in federal 
636.63  TANF expenditures or nonfederal 
636.64  expenditures for TANF MOE that may 
636.65  result from reporting additional 
636.66  allowable sources of nonfederal TANF 
636.67  MOE expenditures under the interim 
637.1   procedures in paragraph (g) into the 
637.2   February or November forecasts required 
637.3   under Minnesota Statutes, section 
637.4   16A.103, unless the commissioner of 
637.5   finance has approved the additional 
637.6   sources of expenditures under paragraph 
637.7   (g). 
637.8   (i) The provisions of Minnesota 
637.9   Statutes, section 256.011, subdivision 
637.10  3, which require that federal grants or 
637.11  aids secured or obtained under that 
637.12  subdivision be used to reduce any 
637.13  direct appropriations provided by law, 
637.14  do not apply if the grants or aids are 
637.15  federal TANF funds. 
637.16  (j) Notwithstanding section 14 of this 
637.17  article, paragraphs (a) to (j) expire 
637.18  June 30, 2005. 
637.19  Subd. 2.  Agency Management 
637.20  General              38,212,000    37,694,000
637.21  State Government
637.22  Special Revenue         403,000       415,000
637.23  Health Care 
637.24  Access                3,631,000     3,673,000
637.25  Federal TANF            165,000       165,000
637.26  The amounts that may be spent from the 
637.27  appropriation for each purpose are as 
637.28  follows: 
637.29  (a) Financial Operations 
637.30  General               6,872,000     7,041,000
637.31  Health Care
637.32  Access                  815,000       828,000
637.33  Federal TANF            165,000       165,000
637.34  (b) Legal & Regulation Operations 
637.35  General               8,405,000     8,239,000
637.36  State Government
637.37  Special Revenue         403,000       415,000
637.38  Health Care
637.39  Access                  239,000       244,000
637.40  (c) Management Operations 
637.41  General              22,935,000    22,414,000
637.42  [ELECTRONIC GOVERNMENT SERVICES.] The 
637.43  general fund appropriation for 
637.44  electronic government services shall be 
637.45  reduced by $307,000 in fiscal year 2002 
637.46  and $184,000 in fiscal year 2003. 
637.47  Health Care
637.48  Access                2,577,000     2,601,000
637.49  Subd. 3.  Administrative Reimbursement/
637.50  Passthrough 
638.1   Federal TANF                               58,605         56,992
638.2   Subd. 4.  Children's Services Grants 
638.3   General              66,147,000    71,129,000
638.4   Federal TANF          6,290,000     6,290,000
638.5   [ADOPTION ASSISTANCE INCENTIVE GRANTS.] 
638.6   Federal funds available during the 
638.7   biennium ending June 30, 2003, for 
638.8   adoption incentive grants are 
638.9   appropriated to the commissioner for 
638.10  these purposes. 
638.11  [EMPLOYMENT AND TRAINING.] (a) 
638.12  $1,810,000 is appropriated from the 
638.13  state's federal TANF block grant to the 
638.14  commissioner in fiscal year 2002 and in 
638.15  fiscal year 2003 for employment and 
638.16  training grants. 
638.17  (b) $5,000,000 is appropriated from the 
638.18  state's federal TANF block grant to the 
638.19  commissioner in fiscal year 2002 and in 
638.20  fiscal year 2003 for welfare-to-work 
638.21  programs administered by the 
638.22  commissioner of economic security that 
638.23  have utilized all of the federal 
638.24  welfare-to-work funding received.  The 
638.25  commissioner of economic security shall 
638.26  establish guidelines for distributing 
638.27  the available funds to local workforce 
638.28  service areas based on current 
638.29  expenditures and the documented need. 
638.30  (c) The appropriations in paragraphs 
638.31  (a) and (b) shall not become part of 
638.32  the base level funding for the 
638.33  2004-2005 biennium.  
638.34  [TANF TRANSFER TO SOCIAL SERVICES.] 
638.35  $4,650,000 is appropriated to the 
638.36  commissioner in fiscal year 2002 and in 
638.37  fiscal year 2003 for purposes of 
638.38  increasing services for families with 
638.39  children whose incomes are at or below 
638.40  200 percent of the federal poverty 
638.41  guidelines.  The commissioner shall 
638.42  authorize a sufficient transfer of 
638.43  funds from the state's federal TANF 
638.44  block grant to the state's federal 
638.45  social services block grant to meet 
638.46  this appropriation. 
638.47  [SOCIAL SERVICES BLOCK GRANT FUNDS FOR 
638.48  CONCURRENT PERMANENCY PLANNING.] 
638.49  Notwithstanding Minnesota Statutes, 
638.50  section 256E.07, $4,650,000 in fiscal 
638.51  year 2002 and $4,650,000 in fiscal year 
638.52  2003 in social services block grant 
638.53  funds allocated to the commissioner 
638.54  under title XX of the Social Security 
638.55  Act are available for distribution to 
638.56  counties under the formula in Minnesota 
638.57  Statutes, section 260C.213, for the 
638.58  purposes of concurrent permanency 
638.59  planning. 
638.60  [CHILDREN'S MENTAL HEALTH GRANTS.] Of 
638.61  the general fund appropriation, 
639.1   $1,000,000 in fiscal year 2002 and 
639.2   $1,000,000 in fiscal year 2003 is for 
639.3   children's mental health grants under 
639.4   Minnesota Statutes, section 245.4886. 
639.5   Subd. 5.  Children's Services Management
639.6   General               5,645,000     5,724,000
639.7   [FEDERAL FINANCIAL PARTICIPATION 
639.8   MAXIMIZATION FOR OUT-OF-HOME CARE.] The 
639.9   commissioner of human services and the 
639.10  commissioner of corrections shall 
639.11  cooperate in efforts to maximize 
639.12  federal financial participation in the 
639.13  costs of providing out-of-home 
639.14  placements for juveniles. 
639.15  Subd. 6.  Basic Health Care Grants
639.16                Summary by Fund
639.17  General           1,164,615,000 1,386,582,000
639.18  Health Care
639.19  Access              198,568,000   277,503,000
639.20  The amounts that may be spent from this 
639.21  appropriation for each purpose are as 
639.22  follows: 
639.23  (a) MinnesotaCare Grants  
639.24  Health Care
639.25  Access              197,818,000   276,753,000
639.26  [MINNESOTACARE FEDERAL RECEIPTS.] 
639.27  Receipts received as a result of 
639.28  federal participation pertaining to 
639.29  administrative costs of the Minnesota 
639.30  health care reform waiver shall be 
639.31  deposited as nondedicated revenue in 
639.32  the health care access fund.  Receipts 
639.33  received as a result of federal 
639.34  participation pertaining to grants 
639.35  shall be deposited in the federal fund 
639.36  and shall offset health care access 
639.37  funds for payments to providers. 
639.38  [MINNESOTACARE FUNDING.] The 
639.39  commissioner may expend money 
639.40  appropriated from the health care 
639.41  access fund for MinnesotaCare in either 
639.42  fiscal year of the biennium. 
639.43  [DENTAL ACCESS GRANTS.] Of this 
639.44  appropriation, $1,000,000 in fiscal 
639.45  year 2002 is to be distributed as 
639.46  dental access grants in accordance with 
639.47  Minnesota Statutes, section 256B.53.  
639.48  If the amount appropriated is not used 
639.49  within the fiscal year, the 
639.50  commissioner of finance shall transfer 
639.51  any remaining amount to the 
639.52  commissioner of health to be 
639.53  distributed as rural hospital capital 
639.54  improvement grants for fiscal year 2003.
639.55  [HEALTH CARE SAFETY NET ENDOWMENT 
639.56  FUND.] The commissioner of finance 
639.57  shall transfer $150,000,000 from the 
639.58  health care access fund to the health 
640.1   care safety net endowment fund. 
640.2   (b) MA Basic Health Care Grants -
640.3   Families and Children
640.4   General             475,611,000   575,996,000
640.5   [INDIAN HEALTH SERVICES FEDERAL MATCH.] 
640.6   In the event the federal medical 
640.7   assistance percentage rate increases to 
640.8   100 percent for services provided as a 
640.9   result of a referral by the federal 
640.10  Indian health service or a tribal 
640.11  provider, the commissioner is 
640.12  authorized to increase the payment rate 
640.13  for referrals by ten percent as an 
640.14  incentive for the completion of 
640.15  documentation required for increased 
640.16  federal participation.  Unspent state 
640.17  medical assistance appropriations 
640.18  resulting from the increase in the 
640.19  federal medical assistance percentage 
640.20  rate shall be transferred to the 
640.21  appropriate account and are available 
640.22  to the commissioner for covering the 
640.23  costs of out-stationed health care 
640.24  program eligibility services on 
640.25  reservations.  The base appropriation 
640.26  for the 2004-2005 biennium for these 
640.27  services must not exceed the state 
640.28  medical assistance savings.  These 
640.29  actions are intended to improve access 
640.30  to health care and assist in 
640.31  eliminating disparities in health 
640.32  status for American Indian people. 
640.33  [PROVIDER SURCHARGE OFFSET.] The 
640.34  commissioner shall reduce future 
640.35  billings under Minnesota Statutes, 
640.36  section 256.9657, to offset $1,600,000 
640.37  in excess provider surcharges 
640.38  erroneously collected from a health 
640.39  care system established in 1994.  The 
640.40  future billings must be reduced by 
640.41  $400,000 in each of the fiscal years 
640.42  beginning with fiscal year 2002 through 
640.43  fiscal year 2005, for a total reduction 
640.44  of $1,600,000.  Notwithstanding section 
640.45  14, this provision expires on June 30, 
640.46  2005. 
640.47  [PMAP RATES.] Prepaid medical 
640.48  assistance, general assistance medical 
640.49  care, and MinnesotaCare program rates 
640.50  set by the commissioner under Minnesota 
640.51  Statutes, section 256B.69, effective on 
640.52  or after January 1, 2002, shall not 
640.53  reflect any increase in cost due to 
640.54  changes made to Minnesota Statutes, 
640.55  sections 62Q.56 and 62Q.58, by the 2001 
640.56  legislature.  Notwithstanding section 
640.57  14, this paragraph shall not expire. 
640.58  [COLLECTION OF HOSPITAL OVERPAYMENTS.] 
640.59  (a) The commissioner shall not commence 
640.60  collection of hospital overpayments 
640.61  resulting from a determination that 
640.62  medical assistance and general 
640.63  assistance payments exceeded the charge 
640.64  limit during the period from 1994 to 
640.65  1997 until after any available appeals 
641.1   have been exhausted. 
641.2   (b) For small rural hospitals, as 
641.3   defined in Minnesota Statutes, section 
641.4   144.148, any amounts then due to the 
641.5   state may be funded through the grant 
641.6   program provided in section 3 for those 
641.7   hospitals. 
641.8   (c) MA Basic Health Care Grants - 
641.9   Elderly and Disabled
641.10  General             520,190,000   609,372,000
641.11  (d) General Assistance Medical Care
641.12  General             157,384,000   179,229,000
641.13  (e) Health Care Grants - Other Assistance  
641.14  General              11,430,000    21,985,000
641.15  Health Care Access      750,000       750,000
641.16  [STOP-LOSS FUND ACCOUNT.] Of the 
641.17  general fund appropriation, $200,000 in 
641.18  fiscal year 2002 and $385,000 in fiscal 
641.19  year 2003 is to the commissioner to be 
641.20  deposited in the stop-loss fund account 
641.21  to be distributed in accordance with 
641.22  Minnesota Statutes, section 256.956. 
641.23  Subd. 7.  Basic Health Care Management
641.24  General              22,467,000    24,091,000
641.25  Health Care
641.26  Access               16,528,000    18,135,000
641.27  The amounts that may be spent from this 
641.28  appropriation for each purpose are as 
641.29  follows: 
641.30  (a) Health Care Policy Administration
641.31  General               3,595,000     4,938,000
641.32  Health Care 
641.33  Access                  578,000       595,000
641.34  [OUTREACH EFFORTS.] (a) Of the general 
641.35  fund appropriation, $120,000 each year 
641.36  is to the commissioner to: 
641.37  (1) coordinate a public/private 
641.38  partnership to provide a statewide 
641.39  outreach campaign on the importance of 
641.40  health coverage and the availability of 
641.41  coverage through both public assistance 
641.42  health care programs and the private 
641.43  health insurance market.  The campaign 
641.44  shall include messages directed to the 
641.45  general population as well as 
641.46  culturally specific and community-based 
641.47  messages; and 
641.48  (2) award grants to public or private 
641.49  organizations to provide local 
641.50  community-based outreach to assist 
641.51  families with children in obtaining 
641.52  health coverage.  In awarding these 
642.1   grants, the commissioner shall consider 
642.2   the following:  
642.3   (i) the ability to contact or serve 
642.4   non-English-speaking families; 
642.5   (ii) the ability to provide trained 
642.6   workers at accessible outreach centers 
642.7   to assist families with children by 
642.8   offering services ranging from 
642.9   providing information up to on-site 
642.10  enrollment in a health care program; 
642.11  and 
642.12  (iii) the ability to serve geographic 
642.13  areas and populations with the greatest 
642.14  disparity in health coverage and health 
642.15  status. 
642.16  (b) The commissioner shall include 
642.17  specific performance expectations that 
642.18  will require grantees to track the 
642.19  number of enrollees in state programs, 
642.20  monitor these grants, and may terminate 
642.21  a grant if the outreach effort does not 
642.22  increase enrollment in the state health 
642.23  care programs.  
642.24  (c) The commissioner shall provide 
642.25  applications and other health care 
642.26  program information to provider 
642.27  offices, hospitals, local human 
642.28  services agencies, community health 
642.29  sites, and elementary schools to 
642.30  encourage and assist these sites in 
642.31  conducting outreach efforts.  These 
642.32  sites may assist families with children 
642.33  by offering services ranging from 
642.34  providing information up to on-site 
642.35  enrollment in public assistance 
642.36  programs. 
642.37  [LONG-TERM CARE EMPLOYEE INSURANCE 
642.38  PROGRAM ADMINISTRATION.] Of the general 
642.39  fund appropriation, $500,000 in fiscal 
642.40  year 2002 and $1,750,000 in fiscal year 
642.41  2003 is for the administrative costs 
642.42  associated with the long-term care 
642.43  employee insurance program under 
642.44  Minnesota Statutes, section 256.956.  
642.45  (b) Health Care Operations
642.46  General              18,872,000    19,153,000
642.47  Health Care
642.48  Access               15,950,000    17,540,000
642.49  [PREPAID MEDICAL PROGRAMS.] The 
642.50  nonfederal share of the prepaid medical 
642.51  assistance program fund, which has been 
642.52  appropriated to fund county managed 
642.53  care advocacy and enrollment operating 
642.54  costs, shall be disbursed as grants 
642.55  using either a reimbursement or block 
642.56  grant mechanism and may also be 
642.57  transferred between grants and nongrant 
642.58  administration costs with approval of 
642.59  the commissioner of finance. 
642.60  Subd. 8.  State-Operated Services
643.1   General             211,440,000   206,465,000
643.2   [MITIGATION RELATED TO STATE-OPERATED 
643.3   SERVICES RESTRUCTURING.] Money 
643.4   appropriated to finance mitigation 
643.5   expenses related to restructuring 
643.6   state-operated services programs and 
643.7   administrative services may be 
643.8   transferred between fiscal years within 
643.9   the biennium. 
643.10  [STATE-OPERATED SERVICES CHEMICAL 
643.11  DEPENDENCY PROGRAMS.] When the 
643.12  operations of the state-operated 
643.13  services chemical dependency fund 
643.14  created in Minnesota Statutes, section 
643.15  246.18, subdivision 2, are impeded by 
643.16  projected cash deficiencies resulting 
643.17  from delays in the receipt of grants, 
643.18  dedicated income, or other similar 
643.19  receivables, and when the deficiencies 
643.20  would be corrected within the budget 
643.21  period involved, the commissioner of 
643.22  finance may transfer general fund cash 
643.23  reserves into this account as necessary 
643.24  to meet cash demands.  The cash flow 
643.25  transfers must be returned to the 
643.26  general fund in the fiscal year that 
643.27  the transfer was made.  Any interest 
643.28  earned on general fund cash flow 
643.29  transfers accrues to the general fund 
643.30  and not the state-operated services 
643.31  chemical dependency fund. 
643.32  [STATE-OPERATED SERVICES 
643.33  RESTRUCTURING.] For purposes of 
643.34  restructuring state-operated services, 
643.35  any state-operated services employee 
643.36  whose position is to be eliminated 
643.37  shall be afforded the options provided 
643.38  in applicable collective bargaining 
643.39  agreements.  All salary and mitigation 
643.40  allocations from fiscal year 2002 shall 
643.41  be carried forward into fiscal year 
643.42  2003.  Provided there is no conflict 
643.43  with any collective bargaining 
643.44  agreement, any state-operated services 
643.45  position reduction must only be 
643.46  accomplished through mitigation, 
643.47  attrition, transfer, and other measures 
643.48  as provided in state or applicable 
643.49  collective bargaining agreements and in 
643.50  Minnesota Statutes, section 252.50, 
643.51  subdivision 11, and not through layoff. 
643.52  [REPAIRS AND BETTERMENTS.] The 
643.53  commissioner may transfer unencumbered 
643.54  appropriation balances between fiscal 
643.55  years for the state residential 
643.56  facilities repairs and betterments 
643.57  account and special equipment. 
643.58  [NAMES REQUIRED ON GRAVES.] (a) Of this 
643.59  appropriation, $300,000 in fiscal year 
643.60  2002 is to replace numbers with the 
643.61  names of individuals at all graves 
643.62  located at regional treatment centers 
643.63  operated or formerly operated by the 
643.64  commissioner. 
643.65  (b) Twenty percent of this 
644.1   appropriation must be transferred to a 
644.2   consumer run disability rights 
644.3   organization located in St. Paul for 
644.4   community organizing, coordination, 
644.5   fundraising, and administrative costs. 
644.6   (c) Any unexpended portion of this 
644.7   appropriation shall not cancel but 
644.8   shall be available in fiscal year 2003 
644.9   for these purposes.  This is a one-time 
644.10  appropriation and shall not become part 
644.11  of the base level funding for the 
644.12  2004-2005 biennium. 
644.13  [BUILDING REMODELING.] The commissioner 
644.14  shall use $400,000 from the 
644.15  appropriation for repairs and 
644.16  betterments to remodel building 6 at 
644.17  the Brainerd regional human services 
644.18  center to make the structure suitable 
644.19  for school programs.  The Brainerd 
644.20  school district shall reimburse the 
644.21  commissioner $200,000 in fiscal year 
644.22  2002 and $200,000 in fiscal year 2003 
644.23  through a lease agreement for these 
644.24  remodeling costs. 
644.25  Subd. 9.  Continuing Care Grants 
644.26  General           1,363,147,000 1,474,989,000
644.27  Lottery Cash Flow     3,850,000     3,300,000
644.28  The amounts that may be spent from this 
644.29  appropriation for each purpose are as 
644.30  follows: 
644.31  (a) Community Social Services
644.32  Block Grants
644.33      48,910,000     49,836,000 
644.34  [CSSA TRADITIONAL APPROPRIATION.] 
644.35  Notwithstanding Minnesota Statutes, 
644.36  section 256E.06, subdivisions 1 and 2, 
644.37  the appropriations available under that 
644.38  section in fiscal years 2002 and 2003 
644.39  must be distributed to each county 
644.40  proportionately to the aid received by 
644.41  the county in calendar year 2000.  
644.42  (b) Aging Adult Service Grants
644.43      14,117,000     13,788,000 
644.44  [AGING AND ADULT SERVICE GRANT 
644.45  CARRYFORWARD AUTHORITY.] (a) Money 
644.46  appropriated for Senior LinkAge line, 
644.47  community services grants, and access 
644.48  demonstration project grants shall be 
644.49  used by the commissioner to maximize 
644.50  federal reimbursement according to 
644.51  federal law, rule, and regulation. 
644.52  (b) Unexpended funds appropriated for 
644.53  Senior LinkAge line, community services 
644.54  grants, and access demonstration 
644.55  project grants for fiscal year 2002 do 
644.56  not cancel but are available to the 
644.57  commissioner for these purposes for 
644.58  fiscal year 2003. 
645.1   [HOME-SHARING GRANTS.] Of this 
645.2   appropriation, $225,000 in fiscal year 
645.3   2002 and $400,000 in fiscal year 2003 
645.4   is for the home-sharing grant program 
645.5   under Minnesota Statutes, section 
645.6   256.973.  This appropriation shall 
645.7   become part of the base level funding 
645.8   for the 2004-2005 biennium. 
645.9   [THE CENTER FOR VICTIMS OF TORTURE.] Of 
645.10  the appropriation for fiscal year 2002, 
645.11  $450,000 is for a grant to the center 
645.12  for victims of torture.  The grant is 
645.13  to be used to conduct continuing 
645.14  education and training of health care 
645.15  and human service workers on how to 
645.16  identify torture survivors, provide 
645.17  appropriate care and make referrals, 
645.18  and to establish a network of care 
645.19  providers who will offer pro bono 
645.20  services for survivors of politically 
645.21  motivated torture.  This is a one-time 
645.22  appropriation requiring a one-to-one, 
645.23  nonstate, in-kind match, and is 
645.24  available until expended. 
645.25  (c) Deaf and Hard-of-Hearing 
645.26  Services Grants
645.27       2,169,000      1,943,000
645.28  [SERVICES TO DEAF PERSONS WITH MENTAL 
645.29  ILLNESS.] (a) Of this appropriation, 
645.30  $125,000 in fiscal year 2002 and 
645.31  $60,000 in fiscal year 2003 is for a 
645.32  grant to a nonprofit agency that 
645.33  currently serves deaf and 
645.34  hard-of-hearing adults with mental 
645.35  illness through residential programs 
645.36  and supportive housing outreach 
645.37  activities.  The grant must be used to 
645.38  continue and maintain community support 
645.39  services for deaf and hard-of-hearing 
645.40  adults with mental illness who use or 
645.41  wish to use sign language as their 
645.42  primary means of communication. 
645.43  (b) The grant for fiscal year 2003 
645.44  shall be increased by $65,000 minus 
645.45  earnings achieved by the grantee 
645.46  through participation in the medical 
645.47  assistance rehabilitation option for 
645.48  persons with mental illness under 
645.49  Minnesota Statutes, section 256B.0623.  
645.50  The grant shall not be less than 
645.51  $60,000. 
645.52  (c) The base level funding for the 
645.53  2004-2005 biennium shall be $125,000 
645.54  minus earnings achieved by the grantee 
645.55  through participation in the medical 
645.56  assistance rehabilitation option for 
645.57  persons with mental illness under 
645.58  Minnesota Statutes, section 256B.0623.  
645.59  [COMMISSION SERVING DEAF AND 
645.60  HARD-OF-HEARING PEOPLE.] Of this 
645.61  appropriation, $5,000 in fiscal year 
645.62  2002 is to the commissioner for the 
645.63  Minnesota commission serving deaf and 
645.64  hard-of-hearing people to carry out the 
646.1   duties under Minnesota Statutes, 
646.2   section 256C.28. 
646.3   [DEAF-BLIND SERVICES.] Of this 
646.4   appropriation, $212,000 in fiscal year 
646.5   2002 and $150,000 in fiscal year 2003 
646.6   are for grants to providers to provide 
646.7   deaf-blind persons with residential 
646.8   training and self-sufficiency supports. 
646.9   (d) Mental Health Grants 
646.10  General              52,694,000    54,386,000
646.11  Lottery Cash Flow     3,850,000     3,300,000
646.12  [MENTAL HEALTH COUNSELING FOR FARM 
646.13  FAMILIES.] Of the general fund 
646.14  appropriation, $150,000 in fiscal year 
646.15  2002 and $150,000 in fiscal year 2003 
646.16  is to be transferred to the board of 
646.17  trustees of the Minnesota state 
646.18  colleges and universities for mental 
646.19  health counseling support to farm 
646.20  families and business operators through 
646.21  the farm business management program at 
646.22  Central Lakes College and Ridgewater 
646.23  College.  This appropriation is 
646.24  available until June 30, 2003. 
646.25  [COSTS ASSOCIATED WITH STATE INMATES 
646.26  WITH MENTAL ILLNESS.] (a) Of the 
646.27  general fund appropriation, $125,000 in 
646.28  fiscal year 2002 and $185,000 in fiscal 
646.29  year 2003 is for evaluation and support 
646.30  staff to do discharge planning under 
646.31  Minnesota Statutes, section 244.054, 
646.32  for persons with serious and persistent 
646.33  mental illness being discharged from 
646.34  prison.  These staff shall be employed 
646.35  by the commissioner but assigned at the 
646.36  direction of the commissioner of 
646.37  corrections. 
646.38  (b) Of the general fund appropriation, 
646.39  the following amounts shall be 
646.40  transferred to the commissioner of 
646.41  corrections for the purposes indicated: 
646.42  (1) $258,000 in fiscal year 2002 and 
646.43  $258,000 in fiscal year 2003 for the 
646.44  staff and travel costs associated with 
646.45  discharge planning under Minnesota 
646.46  Statutes, section 244.054, for persons 
646.47  with serious and persistent mental 
646.48  illness; 
646.49  (2) $769,000 in fiscal year 2002 and 
646.50  $638,000 in fiscal year 2003 for grants 
646.51  to counties under the transitional 
646.52  housing and community support program 
646.53  for former state inmates with serious 
646.54  and persistent mental illness; and 
646.55  (3) $24,000 in fiscal year 2002 and 
646.56  $24,000 in fiscal year 2003 for the 
646.57  cost of medications for state inmates 
646.58  with serious and persistent mental 
646.59  illness. 
646.60  [ADULT MENTAL HEALTH EMERGENCY 
647.1   SERVICES.] Of the general fund 
647.2   appropriation, $1,000,000 in fiscal 
647.3   year 2002 and $1,000,000 in fiscal year 
647.4   2003 is for adult mental health 
647.5   emergency services under Minnesota 
647.6   Statutes, section 245.469. 
647.7   [COMPULSIVE GAMBLING.] Of the 
647.8   appropriation from the lottery prize 
647.9   fund to the commissioner for the 
647.10  compulsive gambling treatment program: 
647.11  (1) $1,500,000 in fiscal year 2002 and 
647.12  $1,500,000 in fiscal year 2003 is for 
647.13  treatment of pathological and problem 
647.14  gambling as specified under Minnesota 
647.15  Statutes, section 245.98, subdivision 
647.16  6; 
647.17  (2) $100,000 in fiscal year 2002 and 
647.18  $200,000 in fiscal year 2003 is for 
647.19  compulsive gambling treatment for 
647.20  minority groups or persons with 
647.21  disabilities on a grant basis to at 
647.22  least two different providers serving 
647.23  different populations; 
647.24  (3) $500,000 in fiscal year 2003 is for 
647.25  grants to be used as start-up funding 
647.26  for new treatment programs in 
647.27  underserved areas of the state.  This 
647.28  is a one-time appropriation and shall 
647.29  not become part of the base level 
647.30  funding for the 2004-2005 biennium; 
647.31  (4) $300,000 in fiscal year 2002 is for 
647.32  a prevalence study required by Laws 
647.33  1998, chapter 407, article 8, section 
647.34  9, paragraph (a).  This is a one-time 
647.35  appropriation and shall not become part 
647.36  of the base appropriation for the 
647.37  2004-2005 biennium; 
647.38  (5) $100,000 for fiscal year 2002 is 
647.39  for study on the impact of problem 
647.40  gambling as required by Laws 1998, 
647.41  chapter 407, article 8, section 9, 
647.42  paragraph (b).  This is a one-time 
647.43  appropriation and shall not become part 
647.44  of the base level funding for the 
647.45  2004-2005 biennium; 
647.46  (6) $50,000 in fiscal year 2002 and 
647.47  $50,000 in fiscal year 2003 is for the 
647.48  purposes of assessing the results of 
647.49  treatment provided through the 
647.50  compulsive gambling program.  This is a 
647.51  one-time appropriation and shall not 
647.52  become part of the base level funding 
647.53  for the 2004-2005 biennium; 
647.54  (7) $100,000 in fiscal year 2002 and 
647.55  $100,000 in fiscal year 2003 is for a 
647.56  grant to the University of Minnesota 
647.57  medical school for research on the 
647.58  effectiveness of pharmaceutical 
647.59  treatment of pathological gambling.  
647.60  This is a one-time appropriation and 
647.61  shall not become part of the base 
647.62  appropriation for the 2004-2005 
647.63  biennium; 
648.1   (8) $600,000 in fiscal year 2002 and 
648.2   $600,000 in fiscal year 2003 is for the 
648.3   state problem gambling help line and 
648.4   for initiatives to increase public 
648.5   awareness of problem and pathological 
648.6   gambling and to assist in its 
648.7   prevention; 
648.8   (9) $150,000 in fiscal year 2002 and 
648.9   $150,000 in fiscal year 2003 is for 
648.10  grants for educating and training in 
648.11  the the identification of individuals 
648.12  who may need treatment for problem or 
648.13  pathological gambling and counseling 
648.14  individuals or families on treatment 
648.15  options.  This is a one-time 
648.16  appropriation and shall not become part 
648.17  of the base level funding for the 
648.18  2004-2005 biennium; 
648.19  (10) $50,000 in fiscal year 2002 and 
648.20  $50,000 in fiscal year 2003 is for 
648.21  training of individuals who will 
648.22  provide treatment and prevention for 
648.23  minority or underserved populations.  
648.24  This is a one-time appropriation and 
648.25  shall not become part of the base level 
648.26  funding for the 2004-2005 biennium; 
648.27  (11) $750,000 in fiscal year 2002 is 
648.28  for a grant to reconstruct project 
648.29  turnabout in Granite Falls that was 
648.30  destroyed by the Granite Falls 
648.31  tornado.  This is a one-time 
648.32  appropriation and shall not become part 
648.33  of the base appropriation for the 
648.34  2004-2005 biennium; and 
648.35  (12) $150,000 in fiscal year 2002 and 
648.36  $150,000 in fiscal year 2003 is for a 
648.37  grant to a compulsive gambling council 
648.38  located in St. Louis county.  The 
648.39  gambling council shall provide a 
648.40  statewide compulsive gambling 
648.41  prevention and education project for 
648.42  adolescents.  This is a one-time 
648.43  appropriation and shall not become part 
648.44  of the base appropriation for the 
648.45  2004-2005 biennium. 
648.46  The unencumbered balance of the 
648.47  appropriation from the lottery prize 
648.48  fund in the first year of the biennium 
648.49  does not cancel but is available for 
648.50  the second year. 
648.51  (e) Community Support Grants
648.52      12,555,000     12,815,000 
648.53  (f) Medical Assistance Long-Term 
648.54  Care Waivers and Home Care
648.55     452,925,000    536,099,000 
648.56  [NURSING FACILITY OPERATED BY THE RED 
648.57  LAKE BAND OF CHIPPEWA INDIANS.] (1) The 
648.58  medical assistance payment rates for 
648.59  the 47-bed nursing facility operated by 
648.60  the Red Lake Band of Chippewa Indians 
648.61  must be calculated according to 
649.1   allowable reimbursement costs under the 
649.2   medical assistance program, as 
649.3   specified in Minnesota Statutes, 
649.4   section 246.50, and are subject to the 
649.5   facility-specific Medicare upper limits.
649.6   (2) In addition, the commissioner shall 
649.7   make available rate adjustments for the 
649.8   biennium beginning July 1, 2001, on the 
649.9   same basis as the adjustments provided 
649.10  to nursing facilities under Minnesota 
649.11  Statutes, section 256B.431.  The 
649.12  commissioner must use the facility's 
649.13  final 2000 and 2001 Medicare cost 
649.14  reports to calculate the adjustments.  
649.15  This rate increase shall become part of 
649.16  the facility's base rate for future 
649.17  rate years. 
649.18  (g) Medical Assistance Long-Term 
649.19  Care Facilities
649.20     574,687,000    575,318,000
649.21  [LONG-TERM CARE CONSULTATION SERVICES.] 
649.22  Long-term care consultation services 
649.23  payments to all counties shall continue 
649.24  at the payment amount in effect for 
649.25  preadmission screening in fiscal year 
649.26  2001, as adjusted for county 
649.27  participation in the access 
649.28  demonstration project. 
649.29  [MORATORIUM EXCEPTION ADMINISTRATIVE 
649.30  PROCESS.] Of this appropriation, 
649.31  $350,000 in fiscal year 2002 and 
649.32  $650,000 in fiscal year 2003 is for the 
649.33  moratorium exception administrative 
649.34  process under Minnesota Statutes, 
649.35  section 144A.073.  The annualized state 
649.36  share of medical assistance costs for 
649.37  projects approved during each year of 
649.38  the biennium must not exceed $1,400,000.
649.39  [RATE INCREASE APPLICABILITY.] The 
649.40  nursing facility rate increase provided 
649.41  under Minnesota Statutes, section 
649.42  256B.431, subdivision 32, for the first 
649.43  90 paid days of an admission shall 
649.44  apply only to admissions occurring on 
649.45  or after July 1, 2001. 
649.46  (h) Alternative Care Grants  
649.47  General              76,204,000    90,680,000
649.48  [ALTERNATIVE CARE TRANSFER.] Any money 
649.49  allocated to the alternative care 
649.50  program that is not spent for the 
649.51  purposes indicated does not cancel but 
649.52  shall be transferred to the medical 
649.53  assistance account. 
649.54  [ALTERNATIVE CARE APPROPRIATION.] The 
649.55  commissioner may expend the money 
649.56  appropriated for the alternative care 
649.57  program for that purpose in either year 
649.58  of the biennium. 
649.59  (i) Group Residential Housing
650.1   General              80,228,000    88,583,000
650.2   (j) Chemical Dependency
650.3   Entitlement Grants
650.4   General              42,330,000    45,213,000
650.5   (k) Chemical Dependency 
650.6   Nonentitlement Grants
650.7   General               6,328,000     6,328,000
650.8   Subd. 10.  Continuing Care Management
650.9   General              22,215,000    22,421,000
650.10  State Government
650.11  Special Revenue         117,000       119,000
650.12  Lottery Cash Flow       240,000       240,000
650.13  [COUNTY INVOLVEMENT COSTS.] Of the 
650.14  general fund appropriation, up to 
650.15  $384,000 in fiscal year 2002 and up to 
650.16  $514,000 in fiscal year 2003 is for the 
650.17  commissioner to allocate to counties 
650.18  for resident relocation costs resulting 
650.19  from planned closures under Minnesota 
650.20  Statutes, section 256B.437, and 
650.21  resident relocations under Minnesota 
650.22  Statutes, section 144A.161.  Unexpended 
650.23  funds for fiscal year 2002 do not 
650.24  cancel but are available to the 
650.25  commissioner for this purpose in fiscal 
650.26  year 2003. 
650.27  [COMPULSIVE GAMBLING ADMINISTRATION.] 
650.28  Of the lottery cash flow appropriation, 
650.29  $240,000 in fiscal year 2002 and 
650.30  $240,000 in fiscal year 2003 is for 
650.31  administration of the compulsive 
650.32  gambling treatment program. 
650.33  Subd. 11.  Economic Support Grants
650.34  General             134,006,000   137,928,000
650.35  Federal TANF        223,257,000   232,111,000
650.36  The amounts that may be spent from this 
650.37  appropriation for each purpose are as 
650.38  follows: 
650.39  (a) Assistance to Families Grants
650.40  General              69,932,000    72,531,000
650.41  Federal TANF        115,732,000   107,116,000
650.42  (b) Work Grants              
650.43  General               9,844,000     9,844,000
650.44  Federal TANF         68,513,000    68,513,000
650.45  [LOCAL INTERVENTION GRANTS FOR 
650.46  SELF-SUFFICIENCY CARRYFORWARD.] 
650.47  Unexpended funds appropriated for local 
650.48  intervention grants under Minnesota 
650.49  Statutes, section 256J.625, for fiscal 
650.50  year 2002 do not cancel but are 
651.1   available to the commissioner for these 
651.2   purposes in fiscal year 2003. 
651.3   [SOUTHEAST ASIAN TRANSITIONAL 
651.4   EMPLOYMENT TRAINING PROJECT.] (a) 
651.5   Federal TANF funds, as specified in 
651.6   this paragraph, are appropriated to the 
651.7   commissioner for a grant to a nonprofit 
651.8   collaborative in Hennepin county 
651.9   specializing in services to Southeast 
651.10  Asians for an "intensive intervention" 
651.11  transitional employment training 
651.12  project to move refugee and immigrant 
651.13  welfare recipients into unsubsidized 
651.14  employment leading to 
651.15  self-sufficiency.  $800,000 in fiscal 
651.16  year 2002 and $800,000 in fiscal year 
651.17  2003 is appropriated to the 
651.18  commissioner for a grant to a nonprofit 
651.19  collaborative in Hennepin county 
651.20  specializing in services to Southeast 
651.21  Asians.  This is a one-time 
651.22  appropriation and shall not become part 
651.23  of the base level funding for the 
651.24  2004-2005 biennium. 
651.25  (b) One of the five partners in the 
651.26  collaborative shall be chosen as the 
651.27  fiscal agent by the commissioner. The 
651.28  primary effort must be on intensive 
651.29  employment skills training, including 
651.30  workplace English and overcoming 
651.31  cultural barriers, and on specialized 
651.32  training in fields of work which 
651.33  involve a credit-based curriculum.  For 
651.34  recipients without a high school 
651.35  diploma or a GED, extra effort shall be 
651.36  made to help the recipient meet the 
651.37  "ability to benefit test" so the 
651.38  recipient can receive financial aid for 
651.39  further training.  During the 
651.40  specialized training, efforts shall be 
651.41  made to involve the recipients with an 
651.42  internship program and retention 
651.43  specialist.  Up to ten percent of the 
651.44  grant shall be used for other efforts 
651.45  to make the recipient families more 
651.46  self-sufficient as provided within TANF 
651.47  rules. 
651.48  (c) Economic Support Grants -      
651.49  Other Assistance
651.50  General               2,907,000     3,065,000
651.51  Federal TANF         38,752,000    56,222,000
651.52  [TANF TRANSFER TO CHILD CARE BLOCK 
651.53  GRANT.] $2,009,000 for fiscal year 2002 
651.54  and $16,097,000 for fiscal year 2003 is 
651.55  appropriated to the commissioner of 
651.56  children, families, and learning for 
651.57  the purposes of Minnesota Statutes, 
651.58  section 119B.05.  The commissioner of 
651.59  human services shall authorize a 
651.60  sufficient transfer of funds from the 
651.61  state's federal TANF block grant to the 
651.62  state's child care development fund 
651.63  block grant to meet this appropriation. 
651.64  [WORKING FAMILY CREDIT.] (a) On a 
652.1   regular basis, the commissioner of 
652.2   revenue, with the assistance of the 
652.3   commissioner of human services, shall 
652.4   calculate the value of the refundable 
652.5   portion of the Minnesota working family 
652.6   credits provided under Minnesota 
652.7   Statutes, section 290.0671, that 
652.8   qualifies for federal reimbursement 
652.9   from the TANF block grant.  The 
652.10  commissioner of revenue shall provide 
652.11  the commissioner of human services with 
652.12  such expenditure records and 
652.13  information as are necessary to support 
652.14  draw-down of federal funds. 
652.15  (b) Federal TANF funds, as specified in 
652.16  this paragraph, are appropriated to the 
652.17  commissioner of human services on 
652.18  calculations under paragraph (a) of 
652.19  working family tax credit expenditures 
652.20  that qualify for reimbursement from the 
652.21  TANF block grant for income tax refunds 
652.22  payable in federal fiscal years 
652.23  beginning October 1, 2001.  The 
652.24  draw-down of federal TANF funds shall 
652.25  be made on a regular basis based on 
652.26  calculations of credit expenditures by 
652.27  the commissioner of revenue.  
652.28  $35,743,000 in fiscal year 2002, 
652.29  $39,125,000 in fiscal year 2003, 
652.30  $37,720,000 in fiscal year 2004, and 
652.31  $40,149,000 in fiscal year 2005 are 
652.32  appropriated to the commissioner of 
652.33  human services.  These funds shall be 
652.34  transferred to the commissioner of 
652.35  revenue to deposit into the general 
652.36  fund. 
652.37  [PRIOR YEAR APPROPRIATION REPEALED.] 
652.38  Notwithstanding Laws 2000, chapter 488, 
652.39  article 8, section 2, subdivision 6, as 
652.40  amended by Laws 2000, chapter 499, 
652.41  sections 22 and 39, the commissioner 
652.42  shall not transfer $7,500,000 from the 
652.43  state's federal TANF block grant to the 
652.44  state's federal Title XX block grant in 
652.45  fiscal year 2002 for purposes of 
652.46  increasing services for families with 
652.47  children whose incomes are at or below 
652.48  200 percent of the federal poverty 
652.49  guidelines. 
652.50  [MINNESOTA FOOD ASSISTANCE PROGRAM.] Of 
652.51  the general fund appropriation, 
652.52  $225,000 in fiscal year 2002 and 
652.53  $1,134,000 in fiscal year 2003 is for 
652.54  the Minnesota food assistance program. 
652.55  (d) Child Support Enforcement
652.56  General               4,239,000     4,239,000
652.57  Federal TANF            260,000       260,000
652.58  [CHILD SUPPORT PAYMENT CENTER.] 
652.59  Payments to the commissioner from other 
652.60  governmental units, private 
652.61  enterprises, and individuals for 
652.62  services performed by the child support 
652.63  payment center must be deposited in the 
652.64  state systems account authorized under 
653.1   Minnesota Statutes, section 256.014.  
653.2   These payments are appropriated to the 
653.3   commissioner for the operation of the 
653.4   child support payment center or system, 
653.5   according to Minnesota Statutes, 
653.6   section 256.014. 
653.7   (e) General Assistance
653.8   General              17,156,000    16,648,000
653.9   [GENERAL ASSISTANCE STANDARD.] The 
653.10  commissioner shall set the monthly 
653.11  standard of assistance for general 
653.12  assistance units consisting of an adult 
653.13  recipient who is childless and 
653.14  unmarried or living apart from his or 
653.15  her parents or a legal guardian at 
653.16  $203.  The commissioner may reduce this 
653.17  amount in accordance with Laws 1997, 
653.18  chapter 85, article 3, section 54. 
653.19  (f) Minnesota Supplemental Aid
653.20  General              29,678,000    31,351,000
653.21  (g) Refugee Services         
653.22  General                 250,000       250,000
653.23  Subd. 12.  Economic Support  
653.24  Management
653.25  General              45,943,000    46,665,000
653.26  Health Care
653.27  Access                1,333,000     1,349,000
653.28  Federal TANF            743,000       743,000
653.29  The amounts that may be spent from this 
653.30  appropriation for each purpose are as 
653.31  follows: 
653.32  (a) Economic Support Policy  
653.33  Administration
653.34  General               8,655,000     8,789,000
653.35  Federal TANF            743,000       743,000
653.36  [FOOD STAMP ADMINISTRATIVE 
653.37  REIMBURSEMENT.] The commissioner shall 
653.38  reduce quarterly food stamp 
653.39  administrative reimbursement to 
653.40  counties in fiscal years 2002 and 2003 
653.41  by the amount that the United States 
653.42  Department of Health and Human Services 
653.43  determines to be the county random 
653.44  moment study share of the food stamp 
653.45  adjustment under Public Law Number 
653.46  105-185.  The reductions shall be 
653.47  allocated to each county in proportion 
653.48  to each county's contribution, if any, 
653.49  to the amount of the adjustment.  Any 
653.50  adjustment to medical assistance 
653.51  administrative reimbursement that is 
653.52  based on the United States Department 
653.53  of Health and Human Services' 
653.54  determinations under Public Law Number 
653.55  105-185 shall be distributed to 
654.1   counties in the same manner.  
654.2   (b) Economic Support Operations 
654.3   General              37,288,000    37,876,000
654.4   Health Care 
654.5   Access                1,333,000     1,349,000
654.6   [SPENDING AUTHORITY FOR FOOD STAMP 
654.7   ENHANCED FUNDING.] In the event that 
654.8   Minnesota qualifies for United States 
654.9   Department of Agriculture Food and 
654.10  Nutrition Services Food Stamp Program 
654.11  enhanced funding beginning in federal 
654.12  fiscal year 1998, the money is 
654.13  appropriated to the commissioner for 
654.14  the purposes of the program.  The 
654.15  commissioner may retain 25 percent of 
654.16  the enhanced funding, with the 
654.17  remaining 75 percent divided among the 
654.18  counties according to a formula that 
654.19  takes into account each county's impact 
654.20  on the statewide food stamp error rate. 
654.21  [FINANCIAL INSTITUTION DATA MATCH AND 
654.22  PAYMENT OF FEES.] The commissioner is 
654.23  authorized to allocate up to $310,000 
654.24  in each year of the biennium from the 
654.25  PRISM special revenue account to make 
654.26  payments to financial institutions in 
654.27  exchange for performing data matches 
654.28  between account information held by 
654.29  financial institutions and the public 
654.30  authority's database of child support 
654.31  obligors as authorized by Minnesota 
654.32  Statutes, section 13B.06, subdivision 7.
654.33  Sec. 3.  COMMISSIONER OF HEALTH 
654.34  Subdivision 1.  Total 
654.35  Appropriation                        131,234,000    130,339,000
654.36                Summary by Fund
654.37  General              83,930,000    87,719,000 
654.38  State Government 
654.39  Special Revenue      26,829,000    28,713,000 
654.40  Health Care 
654.41  Access               13,935,000     7,367,000 
654.42  Federal TANF          6,540,000     6,540,000 
654.43  Subd. 2.  Family and 
654.44  Community Health                      68,501,000     72,669,000 
654.45                Summary by Fund
654.46  General              57,318,000    60,430,000
654.47  State Government 
654.48  Special Revenue         961,000     1,987,000 
654.49  Health Care 
654.50  Access                3,682,000     3,712,000 
654.51  Federal TANF          6,540,000     6,540,000 
654.52  [HEALTH DISPARITIES.] Of the general 
655.1   fund appropriation, $6,450,000 in 
655.2   fiscal year 2002 and $7,450,000 in 
655.3   fiscal year 2003 is for reducing health 
655.4   disparities to be spent as follows: 
655.5   (1) $3,400,000 the first year and 
655.6   $4,150,000 the second year for grants 
655.7   to community organizations for 
655.8   prevention services targeted to 
655.9   populations affected by health 
655.10  disparities; 
655.11  (2) $2,150,000 the first year and 
655.12  $2,350,000 the second year for grants 
655.13  to community health boards. 
655.14  (3) $500,000 each year for grants to 
655.15  tribal governments to support efforts 
655.16  to identify and implement culturally 
655.17  based community interventions that 
655.18  reduce health disparities for American 
655.19  Indians; 
655.20  (4) $200,000 the first year and 
655.21  $250,000 the second year for 
655.22  distribution to the community health 
655.23  boards in accordance with Minnesota 
655.24  Statutes, section 145.9269, subdivision 
655.25  9, for health screening and follow-up 
655.26  services for foreign-born persons; and 
655.27  (5) $200,000 each year for state 
655.28  administrative costs. 
655.29  [IMMUNIZATION INFORMATION SERVICE.] Of 
655.30  the general fund appropriation, 
655.31  $1,000,000 the first year and 
655.32  $2,000,000 the second year is available 
655.33  to the commissioner for grants to 
655.34  community health boards as defined in 
655.35  Minnesota Statutes, section 145A.02, to 
655.36  support the development of a statewide 
655.37  immunization information service and to 
655.38  support maintenance of current registry 
655.39  activities related to tracking medical 
655.40  assistance-eligible children.  
655.41  [PROMOTING HEALTHY LIFESTYLES.] 
655.42  $6,540,000 from the TANF fund in fiscal 
655.43  years 2002 and 2003 is appropriated to 
655.44  the commissioner to award grants to 
655.45  promote healthy behaviors among youth 
655.46  in accordance with Minnesota Statutes, 
655.47  section 145.9263.  
655.48  Of this amount, $3,000,000 is for local 
655.49  grants under Minnesota Statutes, 
655.50  section 145.9263, subdivision 2; 
655.51  $3,000,000 is for community youth 
655.52  grants under Minnesota Statutes, 
655.53  section 145.9263, subdivision 3; 
655.54  $480,000 is for a statewide outreach 
655.55  campaign under Minnesota Statutes, 
655.56  section 145.9263, subdivision 4; and 
655.57  $60,000 is for training and technical 
655.58  assistance. 
655.59  [PROMOTING HEALTHY LIFESTYLES 
655.60  CARRYFORWARD.] Any unexpended balance 
655.61  of the TANF funds appropriated for the 
655.62  promoting healthy lifestyles grant 
656.1   program established under Minnesota 
656.2   Statutes, section 145.9263, in the 
656.3   first fiscal year of the biennium does 
656.4   not cancel but is available for the 
656.5   second year. 
656.6   [HEALTH WORKFORCE DEVELOPMENT.] Of the 
656.7   general fund appropriation, $1,003,000 
656.8   in the first year and $1,967,000 in the 
656.9   second year is to expand the health 
656.10  professionals loan program, of which 
656.11  $963,000 in the first year and 
656.12  $1,927,000 in the second year is for 
656.13  direct grants to increase the placement 
656.14  of physicians, dentists, pharmacists, 
656.15  mental health providers, health care 
656.16  technicians in rural communities, and 
656.17  nurses in nursing homes, ICFs/MR, and 
656.18  home health care agencies statewide. 
656.19  [POISON INFORMATION SYSTEM.] Of the 
656.20  general fund appropriation, $1,360,000 
656.21  each fiscal year is for poison control 
656.22  system grants under Minnesota Statutes, 
656.23  section 145.93. 
656.24  [WIC TRANSFERS.] The general fund 
656.25  appropriation for the women, infants, 
656.26  and children (WIC) food supplement 
656.27  program is available for either year of 
656.28  the biennium.  Transfers of these funds 
656.29  between fiscal years must be either to 
656.30  maximize federal funds or to minimize 
656.31  fluctuations in the number of program 
656.32  participants. 
656.33  [MINNESOTA CHILDREN WITH SPECIAL HEALTH 
656.34  NEEDS CARRYFORWARD.] General fund 
656.35  appropriations for treatment services 
656.36  in the services for Minnesota children 
656.37  with special health needs program are 
656.38  available for either year of the 
656.39  biennium. 
656.40  [HOME VISITING PROGRAM.] Of the general 
656.41  fund appropriation, $7,000,000 each 
656.42  year is for distribution to county 
656.43  boards according to the formula in 
656.44  Minnesota Statutes, section 256J.625, 
656.45  subdivision 3, to be used by county 
656.46  public health boards to serve families 
656.47  with incomes at or below 200 percent of 
656.48  the federal poverty guidelines, in the 
656.49  manner specified by Minnesota Statutes, 
656.50  section 145A.16, subdivision 3, clauses 
656.51  (2), (3), (4), (5), and (6).  Training, 
656.52  evaluation, and technical assistance 
656.53  shall be provided in accordance with 
656.54  Minnesota Statutes, section 145A.16, 
656.55  subdivisions 5, 6, and 7.  This 
656.56  appropriation shall not become a part 
656.57  of the agency's base funding for the 
656.58  2004-2005 biennium. 
656.59  [HOME VISITING TANF BASE REDUCTION.] 
656.60  Notwithstanding Laws 2000, chapter 488, 
656.61  article 8, section 2, subdivision 6, as 
656.62  amended by Laws 2000, chapter 499, 
656.63  sections 22 and 39, base level funding 
656.64  from the state's federal TANF block 
656.65  grant for the home visiting program 
657.1   under Minnesota Statutes, section 
657.2   145A.16, for fiscal year 2002 and 
657.3   fiscal year 2003 is zero. 
657.4   [SUICIDE PREVENTION.] Of the general 
657.5   fund appropriation, $1,025,000 each 
657.6   year is to fund community-based suicide 
657.7   prevention programs under Minnesota 
657.8   Statutes, section 145.56, subdivision 
657.9   2, and $75,000 each year is for the 
657.10  commissioner for suicide prevention 
657.11  activities under Minnesota Statutes, 
657.12  section 145.56, subdivisions 1, 3, 4, 
657.13  and 5. 
657.14  [INFORMED CONSENT.] $172,000 in fiscal 
657.15  year 2002 and $359,000 in fiscal year 
657.16  2003 are for the commissioner to 
657.17  implement Minnesota Statutes, sections 
657.18  145.4241 to 145.4247. 
657.19  Subd. 3.  Access and Quality 
657.20  Improvement                           27,028,000     20,480,000 
657.21                Summary by Fund
657.22  General               8,263,000     8,231,000 
657.23  State Government 
657.24  Special Revenue       8,512,000     8,594,000 
657.25  Health Care 
657.26  Access               10,253,000     3,655,000 
657.27  [STOP-LOSS FUND.] Of the health care 
657.28  access fund appropriation, $200,000 the 
657.29  first year and $50,000 the second year 
657.30  is for grants to organizations 
657.31  developing health care purchasing 
657.32  alliances established under Minnesota 
657.33  Statutes, chapter 62T.  Of this 
657.34  appropriation, $50,000 the first year 
657.35  is for a grant to the University of 
657.36  Minnesota-Crookston to support the 
657.37  northwest purchasing alliance; $50,000 
657.38  the first year is for a grant to the 
657.39  southwest regional development 
657.40  commission to support the southwest 
657.41  purchasing alliance; $50,000 the first 
657.42  year is for a grant to the arrowhead 
657.43  regional development commission to 
657.44  support the development of a northeast 
657.45  Minnesota purchasing alliance; and 
657.46  $50,000 each year is for a grant to the 
657.47  Brainerd lakes area chamber of commerce 
657.48  education association to support the 
657.49  north central purchasing alliance.  The 
657.50  state grants must be matched on a 
657.51  one-to-one basis by nonstate funds.  
657.52  This is a one-time appropriation and 
657.53  shall not become part of the base level 
657.54  funding for the 2004-2005 biennium. 
657.55  [HEALTH CARE SAFETY NET.] Of the health 
657.56  care access fund appropriation, 
657.57  $6,500,000 the first year is to provide 
657.58  financial support to Minnesota health 
657.59  care safety net providers.  This 
657.60  appropriation shall not become part of 
657.61  base funding for the agency for the 
657.62  2004-2005 biennium.  Of the amounts 
658.1   available: 
658.2   (1) $2,000,000 is for a grant program 
658.3   to aid safety net community clinics; 
658.4   (2) $2,000,000 is to be transferred to 
658.5   the Minnesota comprehensive health 
658.6   association (MCHA); and 
658.7   (3) $2,500,000 is for a grant program 
658.8   to provide rural hospital capital 
658.9   improvement grants described in 
658.10  Minnesota Statutes, section 144.148. 
658.11  [GRANTS TO COMMUNITY CLINICS.] Of the 
658.12  general fund appropriation, $2,000,000 
658.13  each year is for grants to eligible 
658.14  community clinics under Minnesota 
658.15  Statutes, section 145.9268, to improve 
658.16  the ongoing viability of Minnesota's 
658.17  clinic-based safety net providers.  
658.18  This appropriation is contingent on 
658.19  federal approval of the 
658.20  intergovernmental transfers and 
658.21  payments to safety net hospitals 
658.22  authorized under Minnesota Statutes, 
658.23  section 256B.195.  This appropriation 
658.24  shall become part of base level funding 
658.25  for the 2004-2005 biennium. 
658.26  [HOME CARE PROVIDERS FEE WAIVER.] 
658.27  Notwithstanding the provisions of 
658.28  Minnesota Rules, chapter 4669, and 
658.29  Minnesota Statutes, section 144A.4605, 
658.30  subdivision 5, the commissioner of 
658.31  health may, during the biennium 
658.32  beginning July 1, 2001, waive license 
658.33  fees for all home care providers who 
658.34  hold a current license as of June 30, 
658.35  2001, for the purpose of reducing 
658.36  surplus home care fees in the state 
658.37  government special revenue fund. 
658.38  [RURAL AMBULANCE STUDY.] (a) The 
658.39  commissioner shall direct the rural 
658.40  health advisory committee to conduct a 
658.41  study and make recommendations 
658.42  regarding the challenges faced by rural 
658.43  ambulance services related to:  
658.44  personnel shortages for volunteer 
658.45  ambulance services; personnel shortages 
658.46  for full-time, paid ambulance services; 
658.47  funding for ambulance operations; and 
658.48  the impact on rural ambulance services 
658.49  from changes in ambulance reimbursement 
658.50  as a result of the federal Balanced 
658.51  Budget Act of 1997, Public Law Number 
658.52  105-33. 
658.53  (b) The advisory committee may also 
658.54  examine and make recommendations on:  
658.55  (1) whether state law allows adequate 
658.56  flexibility to address operational and 
658.57  staffing problems encountered by rural 
658.58  ambulance services; and 
658.59  (2) whether current incentive programs, 
658.60  such as the volunteer ambulance 
658.61  recruitment program and state 
658.62  reimbursement for volunteer training, 
659.1   are adequate to ensure ambulance 
659.2   service volunteers will be available in 
659.3   rural areas. 
659.4   (c) The advisory committee shall 
659.5   identify existing state, regional, and 
659.6   local resources supporting the 
659.7   provision of local ambulance services 
659.8   in rural areas. 
659.9   (d) The advisory committee shall, if 
659.10  appropriate, make recommendations for 
659.11  addressing alternative delivery models 
659.12  for rural volunteer ambulance 
659.13  services.  Such alternatives may 
659.14  include, but are not limited to, 
659.15  multiprovider service coalitions, 
659.16  purchasing cooperatives, regional 
659.17  response strategies, and different 
659.18  utilization of first responder and 
659.19  rescue squads. 
659.20  (e) In conducting its study, the 
659.21  advisory committee shall consult with 
659.22  groups broadly representative of rural 
659.23  health and emergency medical services.  
659.24  Such groups may include:  local elected 
659.25  officials; ambulance and emergency 
659.26  medical services associations; 
659.27  hospitals and nursing homes; 
659.28  physicians, nurses, and mid-level 
659.29  practitioners; rural health groups; the 
659.30  emergency medical services regulatory 
659.31  board and regional emergency medical 
659.32  services boards; and fire and sheriff's 
659.33  departments. 
659.34  (f) The advisory committee shall report 
659.35  its findings and recommendations to the 
659.36  commissioner by September 1, 2002. 
659.37  Subd. 4.  Health Protection           30,250,000     31,323,000 
659.38                Summary by Fund 
659.39  General              13,045,000    13,346,000 
659.40  State Government 
659.41  Special Revenue      17,205,000    17,977,000 
659.42  [EMERGING HEALTH THREATS.] (a) Of the 
659.43  general fund appropriation, $750,000 in 
659.44  the first year and $850,000 in the 
659.45  second year is to maintain the state 
659.46  capacity to identify and respond to 
659.47  emerging health threats.  
659.48  (b) Of these amounts, $450,000 in the 
659.49  first year and $550,000 in the second 
659.50  year is to expand state laboratory 
659.51  capacity to identify infectious disease 
659.52  organisms, evaluate environmental 
659.53  contaminants, and develop new 
659.54  analytical techniques to deal with 
659.55  biological and chemical health threats. 
659.56  (c) $300,000 each year is to train, 
659.57  consult, and otherwise assist local 
659.58  officials responding to clandestine 
659.59  drug laboratories and minimizing health 
659.60  risks to responders and the public.  
660.1   The commissioner is authorized to bill 
660.2   local governments to reimburse the 
660.3   general fund for the costs incurred. 
660.4   [SEXUALLY TRANSMITTED INFECTIONS.] Of 
660.5   the general fund appropriation, 
660.6   $150,000 each year is to increase 
660.7   access to free screening for sexually 
660.8   transmitted infections, including 
660.9   efforts to provide screening to members 
660.10  of high-risk communities, and $250,000 
660.11  each year is for grants to 
660.12  community-based organizations and local 
660.13  public health entities to increase the 
660.14  screening of members of high-risk 
660.15  communities.  These appropriations 
660.16  shall become part of the base level 
660.17  funding for the 2004-2005 biennium. 
660.18  [BASE FUNDING TRANSFER.] $250,000 each 
660.19  fiscal year is transferred from the 
660.20  base appropriation for sexually 
660.21  transmitted disease program operations 
660.22  to the HIV grants program and shall 
660.23  become part of base level funding for 
660.24  the HIV grants program for the 
660.25  2004-2005 biennium. 
660.26  [COMMUNITY HEALTH EDUCATION AND 
660.27  PROMOTION PROGRAM ON FOOD SAFETY.] (a) 
660.28  Of the general fund appropriation, 
660.29  $200,000 each year is for a grant to 
660.30  the city of Minneapolis to establish a 
660.31  community-based health education and 
660.32  promotion program on food safety in the 
660.33  Latino, Somali, and Southeast Asian 
660.34  communities. 
660.35  (b) The program shall consist of direct 
660.36  training of food industry operators and 
660.37  workers on safe handling of food and 
660.38  proper operation of food establishments 
660.39  and a community consumer awareness 
660.40  campaign to increase community 
660.41  awareness of food safety and access to 
660.42  food regulatory services.  
660.43  (c) This is a one-time appropriation 
660.44  and shall not become part of the base 
660.45  level funding for the 2004-2005 
660.46  biennium. 
660.47  Subd. 5.  Management and 
660.48  Support Services                       5,455,000      5,867,000 
660.49                Summary by Fund
660.50  General               5,304,000     5,712,000 
660.51  State Government 
660.52  Special Revenue         151,000       155,000 
660.53  Sec. 4.  VETERANS NURSING   
660.54  HOMES BOARD                           30,948,000     32,030,000 
660.55  [VETERANS HOMES SPECIAL REVENUE 
660.56  ACCOUNT.] The general fund 
660.57  appropriations made to the board may be 
660.58  transferred to a veterans homes special 
660.59  revenue account in the special revenue 
660.60  fund in the same manner as other 
661.1   receipts are deposited according to 
661.2   Minnesota Statutes, section 198.34, and 
661.3   are appropriated to the board for the 
661.4   operation of board facilities and 
661.5   programs. 
661.6   [SETTING COST OF CARE.] The cost of 
661.7   care for the domiciliary residents at 
661.8   the Minneapolis veterans home for 
661.9   fiscal year 2002 and fiscal year 2003 
661.10  shall be calculated based on 100 
661.11  percent occupancy. 
661.12  [DEFICIENCY FUNDING.] Of the general 
661.13  fund appropriation in fiscal year 2002, 
661.14  $2,000,000 is available with the 
661.15  approval of the commissioner of 
661.16  finance.  Approval of the commissioner 
661.17  of finance is contingent upon review of 
661.18  the board's submittal of a report 
661.19  outlining the following: 
661.20  (1) a long-term revenue outlook for the 
661.21  homes; 
661.22  (2) a review and recommendation of 
661.23  alternative funding sources for the 
661.24  homes' operations; and 
661.25  (3) administrative and service options 
661.26  to bring cost growth in line with 
661.27  revenues. 
661.28  Sec. 5.  HEALTH-RELATED BOARDS 
661.29  Subdivision 1.  Total       
661.30  Appropriation                         11,199,000     11,424,000 
661.31  [STATE GOVERNMENT SPECIAL REVENUE 
661.32  FUND.] The appropriations in this 
661.33  section are from the state government 
661.34  special revenue fund. 
661.35  [NO SPENDING IN EXCESS OF REVENUES.] 
661.36  The commissioner of finance shall not 
661.37  permit the allotment, encumbrance, or 
661.38  expenditure of money appropriated in 
661.39  this section in excess of the 
661.40  anticipated biennial revenues or 
661.41  accumulated surplus revenues from fees 
661.42  collected by the boards.  Neither this 
661.43  provision nor Minnesota Statutes, 
661.44  section 214.06, applies to transfers 
661.45  from the general contingent account. 
661.46  Subd. 2.  Board of Chiropractic 
661.47  Examiners                                372,000        384,000
661.48  Subd. 3.  Board of Dentistry             946,000        855,000
661.49  [EXPANDED DUTIES.] Of this 
661.50  appropriation, $115,000 in fiscal year 
661.51  2002 is to the board for the costs 
661.52  associated with the expanded duties 
661.53  relative to the regulation of dental 
661.54  hygienists and foreign-trained 
661.55  dentists.  This is a one-time 
661.56  appropriation and shall not become part 
661.57  of the base level funding for the 
661.58  2004-2005 biennium. 
662.1   Subd. 4.  Board of Dietetic
662.2   and Nutrition Practice                    98,000        101,000
662.3   Subd. 5.  Board of Marriage and 
662.4   Family Therapy                           114,000        118,000
662.5   [FEE INCREASE.] The board may increase 
662.6   fees to meet the requirements of 
662.7   Minnesota Statutes, section 214.06. 
662.8   Subd. 6.  Board of Medical  
662.9   Practice                               3,334,000      3,400,000
662.10  Subd. 7.  Board of Nursing             2,789,000      2,902,000
662.11  [DEVELOPMENT OF POSTERS.] Of this 
662.12  appropriation, $20,000 in fiscal year 
662.13  2002 is for the board to develop and 
662.14  distribute posters that may be used by 
662.15  facilities to satisfy the requirements 
662.16  of Minnesota Statutes, section 144.582, 
662.17  subdivision 4. 
662.18  [HEALTH PROFESSIONAL SERVICES 
662.19  ACTIVITY.] Of these appropriations, 
662.20  $515,,000 the first year and $546,000 
662.21  the second year are for the health 
662.22  professional services activity. 
662.23  [FEE INCREASE.] The board may increase 
662.24  fees to meet the requirements of 
662.25  Minnesota Statutes, section 214.06.  
662.26  Subd. 8.  Board of Nursing
662.27  Home Administrators                     200,000        198,000
662.28  Subd. 9.  Board of Optometry              93,000         96,000
662.29  Subd. 10.  Board of Pharmacy           1,336,000      1,386,000
662.30  [ADMINISTRATIVE SERVICES UNIT.] Of this 
662.31  appropriation, $354,000 the first year 
662.32  and $359,000 the second year are for 
662.33  the health boards administrative 
662.34  services unit.  The administrative 
662.35  services unit may receive and expend 
662.36  reimbursements for services performed 
662.37  for other agencies. 
662.38  Subd. 11.  Board of Physical Therapy     191,000        197,000
662.39  Subd. 12.  Board of Podiatry              53,000         45,000
662.40  Subd. 13.  Board of Psychology           669,000        680,000
662.41  Subd. 14.  Board of Social Work          846,000        873,000
662.42  Subd. 15.  Board of Veterinary 
662.43  Medicine                                 158,000        189,000
662.44  Sec. 6.  EMERGENCY MEDICAL
662.45  SERVICES BOARD                         2,663,000      2,675,000 
662.46  [COMPREHENSIVE ADVANCED LIFE SUPPORT 
662.47  EDUCATIONAL PROGRAM.] Of this 
662.48  appropriation, $200,000 in fiscal year 
662.49  2002 and $200,000 in fiscal year 2003 
662.50  is to increase funding for the 
662.51  comprehensive advanced life support 
662.52  educational program under Minnesota 
662.53  Statutes, section 144E.37.  This 
663.1   appropriation shall become part of base 
663.2   level funding for the 2004-2005 
663.3   biennium. 
663.4   [AUTOMATIC DEFIBRILLATOR STUDY.] Of 
663.5   this appropriation, $25,000 in fiscal 
663.6   year 2002 is to the board to study, in 
663.7   consultation with the commissioner of 
663.8   public safety, and report to the 
663.9   legislature by December 15, 2002, 
663.10  regarding the availability of automatic 
663.11  defibrillators outside the seven-county 
663.12  metropolitan area.  The report shall 
663.13  include recommendations to make these 
663.14  devices accessible within a reasonable 
663.15  distance through the nonmetropolitan 
663.16  area, including recommendations for 
663.17  funding their acquisition and 
663.18  distribution. 
663.19  Sec. 7.  COUNCIL ON DISABILITY           692,000        714,000
663.20  Sec. 8.  OMBUDSMAN FOR MENTAL 
663.21  HEALTH AND MENTAL RETARDATION          1,752,000      1,568,000
663.22  [CENTER FOR OMBUDSMAN SERVICES.] (a) Of 
663.23  this appropriation, $250,000 in fiscal 
663.24  year 2002 is for the one-time costs of 
663.25  establishing a center for Minnesota 
663.26  ombudsman services.  Unexpended funds 
663.27  for fiscal year 2002 do not cancel but 
663.28  are available for this purpose in 
663.29  fiscal year 2003. 
663.30  (b) The following agencies shall 
663.31  colocate to establish the center:  the 
663.32  ombudsman for corrections, the crime 
663.33  victims ombudsman, the ombudsman for 
663.34  mental health and mental retardation, 
663.35  the ombudsman for older Minnesotans, 
663.36  the ombudsman for state-managed health 
663.37  care programs, and the ombudsman for 
663.38  families. 
663.39  (c) Each agency described in paragraph 
663.40  (b) shall retain its statutory 
663.41  authority and funding for the special 
663.42  populations served. 
663.43  (d) Each agency described in paragraph 
663.44  (b) shall contribute to the shared 
663.45  operational expenses and shall pool 
663.46  administrative capabilities and 
663.47  resources as appropriate in at least 
663.48  the following areas:  purchasing, 
663.49  payroll, human resources, information 
663.50  technology, inventory, leasing, 
663.51  contracts, and telecommunications. 
663.52  (e) The functions described in 
663.53  paragraph (d) shall be administered by 
663.54  a board composed of the six 
663.55  ombudspersons referenced in paragraph 
663.56  (b). 
663.57  (f) The center shall make a preliminary 
663.58  report to the legislature by January 
663.59  15, 2003, and a final report by January 
663.60  15, 2004, on implementation of the 
663.61  colocation requirement. 
664.1   Sec. 9.  OMBUDSMAN
664.2   FOR FAMILIES                             251,000        256,000
664.3   Sec. 10.  TRANSFERS 
664.4   Subdivision 1.  Grants
664.5   The commissioner of human services, 
664.6   with the approval of the commissioner 
664.7   of finance, and after notification of 
664.8   the chair of the senate health and 
664.9   family security budget division and the 
664.10  chair of the house health and human 
664.11  services finance committee, may 
664.12  transfer unencumbered appropriation 
664.13  balances for the biennium ending June 
664.14  30, 2003, within fiscal years among the 
664.15  MFIP, general assistance, general 
664.16  assistance medical care, medical 
664.17  assistance, Minnesota supplemental aid, 
664.18  and group residential housing programs, 
664.19  and the entitlement portion of the 
664.20  chemical dependency consolidated 
664.21  treatment fund, and between fiscal 
664.22  years of the biennium. 
664.23  Subd. 2.  Administration
664.24  Positions, salary money, and nonsalary 
664.25  administrative money may be transferred 
664.26  within the departments of human 
664.27  services and health and within the 
664.28  programs operated by the veterans 
664.29  nursing homes board as the 
664.30  commissioners and the board consider 
664.31  necessary, with the advance approval of 
664.32  the commissioner of finance.  The 
664.33  commissioner or the board shall inform 
664.34  the chairs of the house health and 
664.35  human services finance committee and 
664.36  the senate health and family security 
664.37  budget division quarterly about 
664.38  transfers made under this provision. 
664.39  Subd. 3.  Prohibited Transfers 
664.40  Grant money shall not be transferred to 
664.41  operations within the departments of 
664.42  human services and health and within 
664.43  the programs operated by the veterans 
664.44  nursing homes board without the 
664.45  approval of the legislature. 
664.46  Sec. 11.  MINNESOTACARE AVAILABILITY
664.47  Of the appropriation for MinnesotaCare 
664.48  for fiscal year 2002, an amount 
664.49  sufficient to fund a fiscal year 2001 
664.50  deficiency is available in fiscal year 
664.51  2001.  This amount shall be determined 
664.52  by the commissioner of human services 
664.53  with the approval of the commissioner 
664.54  of finance. 
664.55  Sec. 12.  INDIRECT COSTS NOT TO
664.56  FUND PROGRAMS.
664.57  The commissioners of health and of 
664.58  human services shall not use indirect 
664.59  cost allocations to pay for the 
664.60  operational costs of any program for 
665.1   which they are responsible. 
665.2   Sec. 13.  CARRYOVER LIMITATION 
665.3   None of the appropriations in this act 
665.4   which are allowed to be carried forward 
665.5   from fiscal year 2002 to fiscal year 
665.6   2003 shall become part of the base 
665.7   level funding for the 2004-2005 
665.8   biennial budget, unless specifically 
665.9   directed by the legislature. 
665.10  Sec. 14.  SUNSET OF UNCODIFIED LANGUAGE
665.11  All uncodified language contained in 
665.12  this article expires on June 30, 2003, 
665.13  unless a different expiration date is 
665.14  explicit. 
665.15     Sec. 15.  Minnesota Statutes 2000, section 16A.06, is 
665.16  amended by adding a subdivision to read: 
665.17     Subd. 10.  [TRANSFERS TO HEALTH CARE ACCESS FUND.] For 
665.18  fiscal years beginning on or after July 1, 2002, the 
665.19  commissioner shall transfer from the general fund to the health 
665.20  care access fund an amount equal to the state share of the cost 
665.21  of covering children in families with income under 185 percent 
665.22  of the federal poverty guidelines.  In determining the amount of 
665.23  this transfer, the commissioner shall disregard MinnesotaCare 
665.24  program changes enacted after July 1, 2001. 
665.25     Sec. 16.  [246.141] [PROJECT LABOR.] 
665.26     Wages for project labor may be paid by the commissioner out 
665.27  of repairs and betterments money if the individual is to be 
665.28  engaged in a construction project or a repair project of 
665.29  short-term and nonrecurring nature.  Compensation for project 
665.30  labor shall be based on the prevailing wage rates, as defined in 
665.31  section 177.42, subdivision 6.  Project laborers are excluded 
665.32  from the provisions of sections 43A.22 to 43A.30, and shall not 
665.33  be eligible for state-paid insurance and benefits. 
665.34     Sec. 17.  Laws 1998, chapter 404, section 18, subdivision 
665.35  4, is amended to read: 
665.36  Subd. 4.  People, Inc. North Side Community 
665.37  Support Program                                         375,000
665.38  For a grant to Hennepin county People, 
665.39  Inc. to purchase, remodel, and complete 
665.40  accessibility upgrades to an existing 
665.41  building or to acquire land or 
665.42  construct a building to be used by the 
665.43  People, Inc. North Side Community 
665.44  Support Program which may provide 
666.1   office space for state employees.  
666.2   This appropriation is from the general 
666.3   fund. 
666.4      Sec. 18.  [EFFECTIVE DATE.] 
666.5      Section 11 is effective the day following final enactment. 
666.6                              ARTICLE 16
666.7                           CRIMINAL JUSTICE
666.8   Section 1.  [CRIMINAL JUSTICE APPROPRIATIONS.] 
666.9      The sums shown in the columns marked "APPROPRIATIONS" are 
666.10  appropriated from the general fund, or another fund named, to 
666.11  the agencies and for the purposes specified in this act, to be 
666.12  available for the fiscal years indicated for each purpose.  The 
666.13  figures "2002" and "2003" where used in this article, mean that 
666.14  the appropriation or appropriations listed under them are 
666.15  available for the year ending June 30, 2002, or June 30, 2003, 
666.16  respectively. 
666.17                          SUMMARY BY FUND
666.18                           2002          2003           TOTAL
666.19  General           $  413,130,000  $  428,035,000   $  841,165,000
666.20  Special Revenue   $    1,389,000  $    1,242,000   $    2,631,000
666.21  TOTAL             $  414,519,000  $  429,277,000   $  843,796,000
666.22                                             APPROPRIATIONS 
666.23                                         Available for the Year 
666.24                                             Ending June 30 
666.25                                            2002         2003 
666.26  Sec. 2.  BOARD OF PUBLIC DEFENSE 
666.27  Subdivision 1.  Total       
666.28  Appropriation                         51,030,000     54,716,000
666.29  None of this appropriation shall be 
666.30  used to pay for lawsuits against public 
666.31  agencies or public officials to change 
666.32  social or public policy.  
666.33  During the biennium ending June 30, 
666.34  2003, the state public defender may, 
666.35  with the approval of the commissioner 
666.36  of finance, transfer funds for 
666.37  transcript costs from the office of 
666.38  administrative services to the state 
666.39  public defender. 
666.40  The amounts that may be spent from this 
666.41  appropriation for each program are 
666.42  specified in the following subdivisions.
666.43  Subd. 2.  State Public      
666.44  Defender 
667.1        3,450,000      3,734,000
667.2   $109,000 the first year and $227,000 
667.3   the second year are for salary and 
667.4   benefit increases. 
667.5   Subd. 3.  Administrative Services  
667.6   Office  
667.7        2,467,000      2,553,000
667.8   $300,000 the first year and $310,000 
667.9   the second year are for the statewide 
667.10  corrections information system project. 
667.11  $32,000 the first year and $68,000 the 
667.12  second year are for salary and benefit 
667.13  increases. 
667.14  Subd. 4.  District Public   
667.15  Defense  
667.16      45,113,000     48,429,000 
667.17  $1,326,000 the first year and 
667.18  $1,366,000 the second year are for 
667.19  grants to the five existing public 
667.20  defense corporations under Minnesota 
667.21  Statutes, section 611.216. 
667.22  $1,315,000 the first year and 
667.23  $3,276,000 the second year are for the 
667.24  part-time public defender viability 
667.25  initiative. 
667.26  Sec. 3.  CORRECTIONS 
667.27  Subdivision 1.  Total 
667.28  Appropriation                        362,641,000    373,675,000
667.29                Summary by Fund
667.30  General             361,252,000   372,433,000
667.31  Special Revenue       1,389,000     1,242,000
667.32  The amounts that may be spent from this 
667.33  appropriation for each program are 
667.34  specified in the following subdivisions.
667.35  Any unencumbered balances remaining in 
667.36  the first year do not cancel but are 
667.37  available for the second year of the 
667.38  biennium. 
667.39  Positions and administrative money may 
667.40  be transferred within the department of 
667.41  corrections as the commissioner 
667.42  considers necessary, upon the advance 
667.43  approval of the commissioner of finance.
667.44  For the biennium ending June 30, 2003, 
667.45  the commissioner of corrections may, 
667.46  with the approval of the commissioner 
667.47  of finance, transfer funds to or from 
667.48  salaries. 
667.49  During the biennium ending June 30, 
667.50  2003, the commissioner may enter into 
667.51  contracts with private corporations or 
667.52  governmental units of the state of 
668.1   Minnesota to house adult offenders 
668.2   committed to the commissioner of 
668.3   corrections.  Every effort shall be 
668.4   made to house individuals committed to 
668.5   the commissioner of corrections in 
668.6   Minnesota correctional facilities. 
668.7   During the biennium ending June 30, 
668.8   2003, if it is necessary to reduce 
668.9   services or staffing within a 
668.10  correctional facility, the commissioner 
668.11  or the commissioner's designee shall 
668.12  meet with affected exclusive 
668.13  representatives.  The commissioner 
668.14  shall make every reasonable effort to 
668.15  retain correctional officer and prison 
668.16  industry employees should reductions be 
668.17  necessary. 
668.18  Subd. 2.  Correctional 
668.19  Institutions  
668.20                Summary by Fund
668.21  General Fund        225,765,000    230,147,000 
668.22  Special Revenue Fund    932,000        785,000 
668.23  If the commissioner contracts with 
668.24  other states, local units of 
668.25  government, or the federal government 
668.26  to rent beds in the Rush City 
668.27  correctional facility under Minnesota 
668.28  Statutes, section 243.51, subdivision 
668.29  1, to the extent possible, the 
668.30  commissioner shall charge a per diem 
668.31  under the contract that is equal to or 
668.32  greater than the per diem cost of 
668.33  housing Minnesota inmates in the 
668.34  facility.  This per diem cost shall be 
668.35  based on the assumption that the 
668.36  facility is at or near capacity.  
668.37  Notwithstanding any laws to the 
668.38  contrary, the commissioner may use the 
668.39  per diem monies to operate the state 
668.40  correctional institutions. 
668.41  The commissioner may use any cost 
668.42  savings generated through the 
668.43  implementation of a per diem reduction 
668.44  plan for capital improvements, which 
668.45  will contribute to further per diem 
668.46  reductions at adult correctional 
668.47  facilities. 
668.48  Subd. 3.  Juvenile Services
668.49      13,984,000     14,283,000 
668.50  In order to maximize federal IV-E 
668.51  funding for state committed juvenile 
668.52  girls, the department of corrections 
668.53  shall make necessary changes to the 
668.54  Mesabi Academy facility and program in 
668.55  order to be in compliance with IV-E 
668.56  guidelines and requirements.  IV-E 
668.57  reimbursement revenue shall be 
668.58  deposited in the state general fund. 
668.59  Subd. 4.  Community Services 
669.1                 Summary by Fund
669.2   General              107,923,000   114,168,000
669.3   Special Revenue          150,000       150,000
669.4   All money received by the commissioner 
669.5   pursuant to the domestic abuse 
669.6   investigation fee under Minnesota 
669.7   Statutes, section 609.2244, is 
669.8   available for use by the commissioner 
669.9   and is appropriated annually to the 
669.10  commissioner for costs related to 
669.11  conducting the investigations. 
669.12  $6,125,000 the first year and 
669.13  $7,464,000 the second year are for an 
669.14  increase in community correction act 
669.15  grants under Minnesota Statutes, 
669.16  section 401.10.  Counties receiving 
669.17  grants under this appropriation shall 
669.18  continue to spend the local matching 
669.19  funds required in Minnesota Statutes, 
669.20  section 401.12.  Counties receiving 
669.21  grants under this appropriation shall 
669.22  consider using a portion of the grant 
669.23  to increase supervision of high risk 
669.24  domestic abuse offenders who are on 
669.25  probation, conditional release, or 
669.26  supervised release by means of caseload 
669.27  reduction so that the number of 
669.28  offenders supervised by officers with 
669.29  specialized caseloads is reduced. 
669.30  $932,000 the first year and $1,277,000 
669.31  the second year are for probation and 
669.32  supervised release services. 
669.33  $621,000 the first year and $851,000 
669.34  the second year are for county 
669.35  probation officer reimbursements. 
669.36  $1,265,000 the first year and 
669.37  $1,335,000 the second year are for 
669.38  grants related to restorative justice 
669.39  programs as defined in Minnesota 
669.40  Statutes, section 611A.775.  Grant 
669.41  awards must be allocated in a balanced 
669.42  manner among rural, suburban, and urban 
669.43  organizations operating restorative 
669.44  justice programs.  Preference must be 
669.45  given to organizations or programs that:
669.46  (1) are currently operating and have 
669.47  had successful results; 
669.48  (2) are community-based; and 
669.49  (3) are supported by both private and 
669.50  public funding. 
669.51  $4,283,000 the first year and 
669.52  $8,000,000 the second year are for 
669.53  juvenile residential treatment grants. 
669.54  Subd. 5.  Management Services
669.55                Summary by Fund
669.56  General Fund         13,580,000     13,835,000 
670.1   Special Revenue Fund    307,000        307,000 
670.2   $750,000 the first year and $750,000 
670.3   the second year are for: 
670.4   (1) detention grants for the Statewide 
670.5   Supervision System; 
670.6   (2) out-of-home placement system 
670.7   development; 
670.8   (3) electronic probation file 
670.9   transfers; and 
670.10  (4) maintaining and conforming the 
670.11  department's systems to the CriMNet 
670.12  standards and backbone, including the 
670.13  Corrections Operational Management 
670.14  System (COMS), Statewide Supervision 
670.15  System (SSS), Detention Information 
670.16  System (DIS), Court Services Tracking 
670.17  System (CSTS), and the sentencing 
670.18  guidelines worksheet system. 
670.19  This money may not be used by the 
670.20  commissioner for any other purpose. 
670.21  $10,000 the first year and $10,000 the 
670.22  second year are for clergy 
670.23  reimbursements under Minnesota 
670.24  Statutes, section 241.052.  
670.25  Sec. 4.  CORRECTIONS OMBUDSMAN          323,000        336,000
670.26  Sec. 5.  SENTENCING GUIDELINES
670.27  COMMISSION                              525,000        550,000 
670.28     Sec. 6.  Minnesota Statutes 2000, section 15A.083, 
670.29  subdivision 4, is amended to read: 
670.30     Subd. 4.  [RANGES FOR OTHER JUDICIAL POSITIONS.] Salaries 
670.31  or salary ranges are provided for the following positions in the 
670.32  judicial branch of government.  The appointing authority of any 
670.33  position for which a salary range has been provided shall fix 
670.34  the individual salary within the prescribed range, considering 
670.35  the qualifications and overall performance of the employee.  The 
670.36  supreme court shall set the salary of the state court 
670.37  administrator and the salaries of district court 
670.38  administrators.  The salary of the state court administrator or 
670.39  a district court administrator may not exceed the salary of a 
670.40  district court judge.  If district court administrators die, the 
670.41  amounts of their unpaid salaries for the months in which their 
670.42  deaths occur must be paid to their estates.  The salary of the 
670.43  state public defender must be 95 percent of the salary of the 
670.44  attorney general shall be fixed by the state board of public 
671.1   defense but must not exceed the salary of a district court judge.
671.2                                           Salary or Range
671.3                                              Effective 
671.4                                            July 1, 1994
671.5   Board on judicial standards
671.6   executive director                      $44,000-60,000 
671.7      Sec. 7.  [241.052] [CLERGY COMPENSATION.] 
671.8      Subject to the availability of money specifically 
671.9   appropriated for this purpose, the commissioner of corrections 
671.10  shall reimburse, upon request, the instate travel and lodging 
671.11  expenses of members of the clergy of good standing in any church 
671.12  or denomination for imparting religious rites or instruction at 
671.13  correctional facilities under the commissioner's control. 
671.14     Sec. 8.  Minnesota Statutes 2000, section 241.272, 
671.15  subdivision 6, is amended to read: 
671.16     Subd. 6.  [USE OF FEES.] Excluding correctional fees 
671.17  collected from offenders supervised by department agents under 
671.18  the authority of section 244.19, subdivision 1, paragraph (a), 
671.19  clause (3), all correctional fees collected under this section 
671.20  go to the general fund.  One-half of the fees collected by 
671.21  agents under the authority of section 244.19, subdivision 1, 
671.22  paragraph (a), clause (3), shall go to the county treasurer in 
671.23  the county where supervision is provided.  The remaining 
671.24  one-half of the fees go to the general fund.  Fees retained by 
671.25  counties may only be used in accordance with section 244.18, 
671.26  subdivision 6. 
671.27     Sec. 9.  Minnesota Statutes 2000, section 242.192, is 
671.28  amended to read: 
671.29     242.192 [CHARGES TO COUNTIES.] 
671.30     (a) Until June 30, 2001 2002, the commissioner shall charge 
671.31  counties or other appropriate jurisdictions 65 percent of the 
671.32  per diem cost of confinement, excluding educational costs and 
671.33  nonbillable service, of juveniles at the Minnesota correctional 
671.34  facility-Red Wing and of juvenile females committed to the 
671.35  commissioner of corrections.  This charge applies to juveniles 
671.36  committed to the commissioner of corrections and juveniles 
672.1   admitted to the Minnesota correctional facility-Red Wing under 
672.2   established admissions criteria.  This charge applies to both 
672.3   counties that participate in the Community Corrections Act and 
672.4   those that do not.  The commissioner shall determine the per 
672.5   diem cost of confinement based on projected population, pricing 
672.6   incentives, market conditions, and the requirement that expense 
672.7   and revenue balance out over a period of two years.  All money 
672.8   received under this section must be deposited in the state 
672.9   treasury and credited to the general fund. 
672.10     (b) Until June 30, 2001 2002, the department of corrections 
672.11  shall be responsible for 35 percent of the per diem cost of 
672.12  confinement described in this section. 
672.13     Sec. 10.  Minnesota Statutes 2000, section 611.23, is 
672.14  amended to read: 
672.15     611.23 [OFFICE OF STATE PUBLIC DEFENDER; APPOINTMENT; 
672.16  SALARY.] 
672.17     The state public defender is responsible to the state board 
672.18  of public defense.  The state public defender shall be appointed 
672.19  by the state board of public defense for a term of four years, 
672.20  except as otherwise provided in this section, and until a 
672.21  successor is appointed and qualified.  The state public defender 
672.22  shall be a full-time qualified attorney, licensed to practice 
672.23  law in this state, serve in the unclassified service of the 
672.24  state, and be removed only for cause by the appointing 
672.25  authority.  Vacancies in the office shall be filled by the 
672.26  appointing authority for the unexpired term.  The salary of the 
672.27  state public defender shall be fixed by the state board of 
672.28  public defense but must not exceed the salary of the chief 
672.29  deputy attorney general a district court judge.  Terms of the 
672.30  state public defender shall commence on July 1.  The state 
672.31  public defender shall devote full time to the performance of 
672.32  duties and shall not engage in the general practice of law. 
672.33     Sec. 11.  Laws 1999, chapter 216, article 1, section 13, 
672.34  subdivision 4, is amended to read: 
672.35  Subd. 4.  Community Services 
672.36                Summary by Fund
673.1   General              95,327,000    97,416,000
673.2   Special Revenue          90,000        90,000
673.3   All money received by the commissioner 
673.4   of corrections pursuant to the domestic 
673.5   abuse investigation fee under Minnesota 
673.6   Statutes, section 609.2244, is 
673.7   available for use by the commissioner 
673.8   and is appropriated annually to the 
673.9   commissioner of corrections for costs 
673.10  related to conducting the 
673.11  investigations. 
673.12  $500,000 the first year and $500,000 
673.13  the second year are for increased 
673.14  funding for intensive community 
673.15  supervision. 
673.16  $1,500,000 the first year and 
673.17  $3,500,000 the second year are for a 
673.18  statewide probation and supervised 
673.19  release caseload and workload reduction 
673.20  grant program.  Counties that deliver 
673.21  correctional services through Minnesota 
673.22  Statutes, chapter 244, and that qualify 
673.23  for new probation officers under this 
673.24  program shall receive full 
673.25  reimbursement for the officers' 
673.26  salaries and reimbursement for the 
673.27  officers' benefits and support as set 
673.28  forth in the probations standards task 
673.29  force report, not to exceed $70,000 per 
673.30  officer annually.  Positions funded by 
673.31  this appropriation may not supplant 
673.32  existing services.  Position control 
673.33  numbers for these positions must be 
673.34  annually reported to the commissioner 
673.35  of corrections. 
673.36  The commissioner shall distribute money 
673.37  appropriated for state and county 
673.38  probation officer caseload and workload 
673.39  reduction, increased supervised release 
673.40  and probation services, and county 
673.41  probation officer reimbursement 
673.42  according to the formula contained in 
673.43  Minnesota Statutes, section 401.10.  
673.44  These appropriations may not be used to 
673.45  supplant existing state or county 
673.46  probation officer positions or existing 
673.47  correctional services or programs.  The 
673.48  money appropriated under this provision 
673.49  is intended to reduce state and county 
673.50  probation officer caseload and workload 
673.51  overcrowding and to increase 
673.52  supervision of individuals sentenced to 
673.53  probation at the county level.  This 
673.54  increased supervision may be 
673.55  accomplished through a variety of 
673.56  methods, including, but not limited to: 
673.57  (1) innovative technology services, 
673.58  such as automated probation reporting 
673.59  systems and electronic monitoring; 
673.60  (2) prevention and diversion programs; 
673.61  (3) intergovernmental cooperation 
673.62  agreements between local governments 
673.63  and appropriate community resources; 
674.1   and 
674.2   (4) traditional probation program 
674.3   services. 
674.4   By January 15, 2001, the commissioner 
674.5   of corrections shall report to the 
674.6   chairs and ranking minority members of 
674.7   the senate and house committees and 
674.8   divisions having jurisdiction over 
674.9   criminal justice funding on the 
674.10  outcomes achieved through the use of 
674.11  state probation caseload reduction 
674.12  appropriations made since 1995.  The 
674.13  commissioner shall, to the extent 
674.14  possible, include an analysis of the 
674.15  ongoing results relating to the 
674.16  measures described in the uniform 
674.17  statewide probation outcome measures 
674.18  workgroup's 1998 report to the 
674.19  legislature. 
674.20  $150,000 each year is for a grant to 
674.21  the Dodge-Filmore-Olmsted community 
674.22  corrections agency for a pilot project 
674.23  to increase supervision of sex 
674.24  offenders who are on probation, 
674.25  intensive community supervision, 
674.26  supervised release, or intensive 
674.27  supervised release by means of caseload 
674.28  reduction.  The grant shall be used to 
674.29  reduce the number of offenders 
674.30  supervised by officers with specialized 
674.31  caseloads to an average of 35 
674.32  offenders.  This is a one-time 
674.33  appropriation.  The grant recipient 
674.34  shall report by January 15, 2002, to 
674.35  the House and Senate committees and 
674.36  divisions with jurisdiction over 
674.37  criminal justice policy and funding on 
674.38  the outcomes of the pilot project. 
674.39  $175,000 the first year and $175,000 
674.40  the second year are for county 
674.41  probation officer reimbursements. 
674.42  $50,000 the first year and $50,000 the 
674.43  second year are for the emergency 
674.44  housing initiative.  The commissioner 
674.45  of corrections may enter into rental 
674.46  agreements per industry standards for 
674.47  emergency housing. 
674.48  $150,000 the first year and $150,000 
674.49  the second year are for probation and 
674.50  supervised release services. 
674.51  $250,000 the first year and $250,000 
674.52  the second year are for increased 
674.53  funding of the sentencing to service 
674.54  program and for a housing coordinator 
674.55  for the institution work crews in the 
674.56  sentencing to serve program. 
674.57  $25,000 the first year and $25,000 the 
674.58  second year are for sex offender 
674.59  transition programming. 
674.60  $250,000 each year is for increased bed 
674.61  capacity for work release offenders. 
675.1   $50,000 each year is for programming 
675.2   for adult female offenders. 
675.3   The following amounts are one-time 
675.4   appropriations for the statewide 
675.5   productive day initiative program 
675.6   defined in Minnesota Statutes, section 
675.7   241.275: 
675.8   $472,000 to the Hennepin county 
675.9   community corrections agency; 
675.10  $472,000 to the Ramsey county community 
675.11  corrections agency; 
675.12  $590,000 to the Arrowhead regional 
675.13  community corrections agency; 
675.14  $425,000 to the Dodge-Fillmore-Olmsted 
675.15  community corrections agency; 
675.16  $283,000 to the Anoka county community 
675.17  corrections agency; and 
675.18  $118,000 to the Tri-county (Polk, 
675.19  Norman, and Red Lake) community 
675.20  corrections agency. 
675.21  $250,000 the first year and $250,000 
675.22  the second year are for grants to 
675.23  Dakota county for the community justice 
675.24  zone pilot project described in article 
675.25  2, section 24.  This is a one-time 
675.26  appropriation. 
675.27  $230,000 the first year is for grants 
675.28  related to restorative justice 
675.29  programs.  The commissioner may make 
675.30  grants to fund new as well as existing 
675.31  programs.  This is a one-time 
675.32  appropriation.  
675.33  The money appropriated for restorative 
675.34  justice program grants under this 
675.35  subdivision may be used to fund the use 
675.36  of restorative justice in domestic 
675.37  abuse cases, except in cases where the 
675.38  restorative justice process that is 
675.39  used includes a meeting at which the 
675.40  offender and victim are both present at 
675.41  the same time.  "Domestic abuse" has 
675.42  the meaning given in Minnesota 
675.43  Statutes, section 518B.01, subdivision 
675.44  2. 
675.45  $25,000 each year is for the juvenile 
675.46  mentoring project.  This is a one-time 
675.47  appropriation.