1.1                          A bill for an act 
  1.2             relating to human services; implementing certain 
  1.3             county initiatives; amending Minnesota Statutes 2002, 
  1.4             sections 119B.11, subdivision 1; 124D.23, subdivision 
  1.5             2; 245.4932, subdivision 1; 245.494, subdivision 1; 
  1.6             245A.10; 253B.05, subdivision 3; 256.935, subdivision 
  1.7             1; 256B.0625, subdivision 20; 256B.0911, subdivision 
  1.8             3; 256F.13, subdivisions 1, 2; 261.035; 393.07, 
  1.9             subdivision 1; 518.167, subdivision 1; repealing 
  1.10            Minnesota Statutes 2002, sections 119B.11, subdivision 
  1.11            4; 145A.17, subdivision 9; 245.478; 245.4888; 245.714; 
  1.12            256B.0945, subdivisions 6, 7, 8, 10; 256B.83; 256F.10, 
  1.13            subdivision 7. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 2002, section 119B.11, 
  1.16  subdivision 1, is amended to read: 
  1.17     Subdivision 1.  [COUNTY CONTRIBUTIONS REQUIRED.] (a) In 
  1.18  addition to payments from basic sliding fee child care program 
  1.19  participants, each county shall contribute from county tax or 
  1.20  other sources a fixed local match equal to its calendar year 
  1.21  1996 required county contribution reduced by the administrative 
  1.22  funding loss that would have occurred in state fiscal year 1996 
  1.23  under section 119B.15.  The commissioner shall recover funds 
  1.24  from the county as necessary to bring county expenditures into 
  1.25  compliance with this subdivision.  The commissioner may accept 
  1.26  county contributions, including contributions above the fixed 
  1.27  local match, in order to make state payments. 
  1.28     (b) The commissioner may accept payments from counties to: 
  1.29     (1) fulfill the county contribution as required under 
  2.1   subdivision 1; 
  2.2      (2) pay for services authorized under this chapter beyond 
  2.3   those paid for with federal or state funds or with the required 
  2.4   county contributions; or 
  2.5      (3) (2) pay for child care services in addition to those 
  2.6   authorized under this chapter, as authorized under other 
  2.7   federal, state, or local statutes or regulations. 
  2.8      (c) (b) The county payments must be deposited in an account 
  2.9   in the special revenue fund.  Money in this account is 
  2.10  appropriated to the commissioner for child care assistance under 
  2.11  this chapter and other applicable statutes and regulations and 
  2.12  is in addition to other state and federal appropriations. 
  2.13     Sec. 2.  Minnesota Statutes 2002, section 124D.23, 
  2.14  subdivision 2, is amended to read: 
  2.15     Subd. 2.  [DUTIES.] (a) Each collaborative must: 
  2.16     (1) establish, with assistance from families and service 
  2.17  providers, clear goals for addressing the health, developmental, 
  2.18  educational, and family-related needs of children and youth and 
  2.19  use outcome-based indicators to measure progress toward 
  2.20  achieving those goals; 
  2.21     (2) establish a comprehensive planning process that 
  2.22  involves all sectors of the community, identifies local needs, 
  2.23  and surveys existing local programs; 
  2.24     (3) integrate service funding sources so that children and 
  2.25  their families obtain services from providers best able to 
  2.26  anticipate and meet their needs; 
  2.27     (4) coordinate families' services to avoid duplicative and 
  2.28  overlapping assessment and intake procedures; 
  2.29     (5) focus primarily on family-centered services; 
  2.30     (6) encourage parents and volunteers to actively 
  2.31  participate by using flexible scheduling and actively recruiting 
  2.32  volunteers; 
  2.33     (7) provide services in locations that are readily 
  2.34  accessible to children and families; 
  2.35     (8) to the extent possible, use new or reallocated funds to 
  2.36  improve or enhance services provided to children and their 
  3.1   families; 
  3.2      (9) identify federal, state, and local institutional 
  3.3   barriers to coordinating services and suggest ways to remove 
  3.4   these barriers; and 
  3.5      (10) design and implement an integrated local service 
  3.6   delivery system for children and their families that coordinates 
  3.7   services across agencies and is client centered.  The delivery 
  3.8   system shall provide a continuum of services for children birth 
  3.9   to age 18, or birth through age 21 for individuals with 
  3.10  disabilities.  The collaborative shall describe the community 
  3.11  plan for serving pregnant women and children from birth to age 
  3.12  six. 
  3.13     (b) The outcome-based indicators developed in paragraph 
  3.14  (a), clause (1), may include the number of low birth weight 
  3.15  babies, the infant mortality rate, the number of children who 
  3.16  are adequately immunized and healthy, require out-of-home 
  3.17  placement or long-term special education services, and the 
  3.18  number of minor parents. 
  3.19     Sec. 3.  Minnesota Statutes 2002, section 245.4932, 
  3.20  subdivision 1, is amended to read: 
  3.21     Subdivision 1.  [COLLABORATIVE RESPONSIBILITIES.] The 
  3.22  children's mental health collaborative shall have the following 
  3.23  authority and responsibilities regarding federal revenue 
  3.24  enhancement: 
  3.25     (1) the collaborative must establish an integrated fund; 
  3.26     (2) the collaborative shall designate a lead county or 
  3.27  other qualified entity as the fiscal agency for reporting, 
  3.28  claiming, and receiving payments; 
  3.29     (3) the collaborative or lead county may enter into 
  3.30  subcontracts with other counties, school districts, special 
  3.31  education cooperatives, municipalities, and other public and 
  3.32  nonprofit entities for purposes of identifying and claiming 
  3.33  eligible expenditures to enhance federal reimbursement; 
  3.34     (4) the collaborative shall use any enhanced revenue 
  3.35  attributable to the activities of the collaborative, including 
  3.36  administrative and service revenue, solely to provide mental 
  4.1   health services or to expand the operational target population.  
  4.2   The lead county or other qualified entity may not use enhanced 
  4.3   federal revenue for any other purpose; 
  4.4      (5) the members of the collaborative must continue the base 
  4.5   level of expenditures, as defined in section 245.492, 
  4.6   subdivision 2, for services for children with emotional or 
  4.7   behavioral disturbances and their families from any state, 
  4.8   county, federal, or other public or private funding source 
  4.9   which, in the absence of the new federal reimbursement earned 
  4.10  under sections 245.491 to 245.496, would have been available for 
  4.11  those services.  The base year for purposes of this subdivision 
  4.12  shall be the accounting period closest to state fiscal year 
  4.13  1993; 
  4.14     (6) the collaborative or lead county must develop and 
  4.15  maintain an accounting and financial management system adequate 
  4.16  to support all claims for federal reimbursement, including a 
  4.17  clear audit trail and any provisions specified in the contract 
  4.18  with the commissioner of human services; 
  4.19     (7) (5) the collaborative or its members may elect to pay 
  4.20  the nonfederal share of the medical assistance costs for 
  4.21  services designated by the collaborative; and 
  4.22     (8) (6) the lead county or other qualified entity may not 
  4.23  use federal funds or local funds designated as matching for 
  4.24  other federal funds to provide the nonfederal share of medical 
  4.25  assistance. 
  4.26     Sec. 4.  Minnesota Statutes 2002, section 245.494, 
  4.27  subdivision 1, is amended to read: 
  4.28     Subdivision 1.  [CHILDREN'S CABINET.] The children's 
  4.29  cabinet, in consultation with the integrated fund task force, 
  4.30  shall: 
  4.31     (1) assist local children's mental health collaboratives in 
  4.32  meeting the requirements of sections 245.491 to 245.496, by 
  4.33  seeking consultation and technical assistance from national 
  4.34  experts and coordinating presentations and assistance from these 
  4.35  experts to local children's mental health collaboratives; 
  4.36     (2) assist local children's mental health collaboratives in 
  5.1   identifying an economically viable operational target 
  5.2   population; 
  5.3      (3) develop methods to reduce duplication and promote 
  5.4   coordinated services including uniform forms for reporting, 
  5.5   billing, and planning of services; 
  5.6      (4) by September 1, 1994, develop a model multiagency plan 
  5.7   of care that can be used by local children's mental health 
  5.8   collaboratives in place of an individual education plan, 
  5.9   individual family community support plan, individual family 
  5.10  support plan, and an individual treatment plan; 
  5.11     (5) assist in the implementation and operation of local 
  5.12  children's mental health collaboratives by facilitating the 
  5.13  integration of funds, coordination of services, and measurement 
  5.14  of results, and by providing other assistance as needed; 
  5.15     (6) develop procedures and provide technical assistance to 
  5.16  allow local children's mental health collaboratives to integrate 
  5.17  resources for children's mental health services with other 
  5.18  resources available to serve children in the target population 
  5.19  in order to maximize federal participation and improve 
  5.20  efficiency of funding; 
  5.21     (7) ensure that local children's mental health 
  5.22  collaboratives and the services received through these 
  5.23  collaboratives meet the requirements set out in sections 245.491 
  5.24  to 245.496; 
  5.25     (8) identify base level funding from state and federal 
  5.26  sources across systems; 
  5.27     (9) explore ways to access additional federal funds and 
  5.28  enhance revenues available to address the needs of the target 
  5.29  population; 
  5.30     (10) develop a mechanism for identifying the state share of 
  5.31  funding for services to children in the target population and 
  5.32  for making these funds available on a per capita basis for 
  5.33  services provided through the local children's mental health 
  5.34  collaborative to children in the target population.  Each year 
  5.35  beginning January 1, 1994, forecast the growth in the state 
  5.36  share and increase funding for local children's mental health 
  6.1   collaboratives accordingly; and 
  6.2      (11) identify barriers to integrated service systems that 
  6.3   arise from data practices and make recommendations including 
  6.4   legislative changes needed in the Data Practices Act to address 
  6.5   these barriers; and 
  6.6      (12) annually review the expenditures of local children's 
  6.7   mental health collaboratives to ensure that funding for services 
  6.8   provided to the target population continues from sources other 
  6.9   than the federal funds earned under sections 245.491 to 245.496 
  6.10  and that federal funds earned are spent consistent with sections 
  6.11  245.491 to 245.496. 
  6.12     Sec. 5.  Minnesota Statutes 2002, section 245A.10, is 
  6.13  amended to read: 
  6.14     245A.10 [FEES.] 
  6.15     (a) The commissioner shall charge a fee for evaluation of 
  6.16  applications and inspection of programs, other than family day 
  6.17  care and foster care, which are licensed under this chapter.  
  6.18  The commissioner may charge a fee for the licensing of school 
  6.19  age child care programs, in an amount sufficient to cover the 
  6.20  cost to the state agency of processing the license. 
  6.21     (b) A county agency may charge a fee to an applicant or 
  6.22  license holder for criminal background checks in an amount not 
  6.23  to exceed the actual cost of conducting background checks, but 
  6.24  in any case not to exceed $100, and may charge for conducting 
  6.25  licensing inspections of family day care and group family day 
  6.26  care programs that are licensed under this chapter in an amount 
  6.27  not to exceed the actual cost of licensing, but in any case not 
  6.28  to exceed $150. 
  6.29     (c) Counties may elect to reduce or waive the fees in 
  6.30  paragraph (b):  
  6.31     (1) if a provider is currently receiving public assistance 
  6.32  under chapter 256J; 
  6.33     (2) in cases of extreme financial hardship; 
  6.34     (3) for new providers; 
  6.35     (4) for providers who have attained at least 16 hours of 
  6.36  training before seeking initial licensure; and 
  7.1      (5) if the county has a shortage of providers in the 
  7.2   county's area. 
  7.3      (d) Counties may allow providers to pay the applicant fees 
  7.4   in paragraph (b) on an installment basis for up to one year.  If 
  7.5   the provider is receiving child care assistance payments from 
  7.6   the state, the provider may have the fees under paragraph (b) 
  7.7   deducted from the child care assistance payments for up to one 
  7.8   year and the state shall reimburse the county for the county 
  7.9   fees collected in this manner. 
  7.10     Sec. 6.  Minnesota Statutes 2002, section 253B.05, 
  7.11  subdivision 3, is amended to read: 
  7.12     Subd. 3.  [DURATION OF HOLD.] (a) Any person held pursuant 
  7.13  to this section may be held up to 72 hours, exclusive of 
  7.14  Saturdays, Sundays, and legal holidays after admission based 
  7.15  upon a determination by the examiner that a hold is necessary.  
  7.16  If a petition for the commitment of the person is filed in the 
  7.17  district court in the county of the person's residence or of the 
  7.18  county in which the treatment facility is located, the court may 
  7.19  issue a judicial hold order pursuant to section 253B.07, 
  7.20  subdivision 2b. 
  7.21     (b) During the 72-hour hold period, a court may not release 
  7.22  a person held under this section unless the court has received a 
  7.23  written petition for release and held a summary hearing 
  7.24  regarding the release.  The petition must include the name of 
  7.25  the person being held, the basis for and location of the hold, 
  7.26  and a statement as to why the hold is improper.  The petition 
  7.27  also must include copies of any written documentation under 
  7.28  subdivision 1 or 2 in support of the hold, unless the person 
  7.29  holding the petitioner refuses to supply the documentation.  The 
  7.30  hearing must be held as soon as practicable and may be conducted 
  7.31  by means of a telephone conference call or similar method by 
  7.32  which the participants are able to simultaneously hear each 
  7.33  other.  If the court decides to release the person, the court 
  7.34  shall direct the release and shall issue written findings 
  7.35  supporting the decision.  The release may not be delayed pending 
  7.36  the written order.  Before deciding to release the person, the 
  8.1   court shall make every reasonable effort to provide notice of 
  8.2   the proposed release to: 
  8.3      (1) any specific individuals identified in a statement 
  8.4   under subdivision 1 or 2 or individuals identified in the record 
  8.5   who might be endangered if the person was not held; 
  8.6      (2) the examiner whose written statement was a basis for a 
  8.7   hold under subdivision 1; and 
  8.8      (3) the peace or health officer who applied for a hold 
  8.9   under subdivision 2. 
  8.10     (c) If at any time during the 72 hours the examiner or 
  8.11  treating physician determines a patient held in a detoxification 
  8.12  facility no longer meets the criteria to be held under this 
  8.13  section, the examiner or treating physician may discharge the 
  8.14  patient and must provide a written statement specifying the 
  8.15  reason why the patient no longer meets the criteria for an 
  8.16  emergency hold.  The county or provider is not liable if a 
  8.17  patient is discharged from a detoxification facility before the 
  8.18  expiration of a 72-hour hold if the requirements of this 
  8.19  paragraph are met. 
  8.20     (d) If a person is intoxicated in public and held under 
  8.21  this section for detoxification, a treatment facility may 
  8.22  release the person without providing notice under paragraph (e) 
  8.23  as soon as the treatment facility determines the person is no 
  8.24  longer intoxicated. 
  8.25     (c) (e) If a treatment facility releases a person during 
  8.26  the 72-hour hold period, the head of the treatment facility 
  8.27  shall immediately notify the agency which employs the peace or 
  8.28  health officer who transported the person to the treatment 
  8.29  facility under this section. 
  8.30     Sec. 7.  Minnesota Statutes 2002, section 256.935, 
  8.31  subdivision 1, is amended to read: 
  8.32     Subdivision 1.  [FUNERAL BURIAL OR CREMATION EXPENSES.] On 
  8.33  the death of any person receiving public assistance through 
  8.34  MFIP, the county agency shall pay an amount for funeral burial 
  8.35  or cremation expenses not exceeding the amount paid for 
  8.36  comparable services under section 261.035 plus actual cemetery 
  9.1   charges.  The county agency may pay for cremation instead of 
  9.2   burial expenses being respectful of cultural and religious 
  9.3   preferences of the decedent or the decedent's next of kin.  No 
  9.4   funeral burial or cremation expenses shall be paid if the estate 
  9.5   of the deceased is sufficient to pay such expenses or if the 
  9.6   spouse, who was legally responsible for the support of the 
  9.7   deceased while living, is able to pay such expenses; provided, 
  9.8   that the additional payment or donation of the cost of cemetery 
  9.9   lot, interment, religious service, or for the transportation of 
  9.10  the body into or out of the community in which the deceased 
  9.11  resided, shall not limit payment by the county agency as herein 
  9.12  authorized.  Freedom of choice in the selection of a funeral 
  9.13  director shall be granted to persons lawfully authorized to make 
  9.14  arrangements for the burial of any such deceased recipient.  In 
  9.15  determining the sufficiency of such estate, due regard shall be 
  9.16  had for the nature and marketability of the assets of the 
  9.17  estate.  The county agency may grant funeral burial or cremation 
  9.18  expenses where the sale would cause undue loss to the estate.  
  9.19  Any amount paid for funeral burial or cremation expenses shall 
  9.20  be a prior claim against the estate, as provided in section 
  9.21  524.3-805, and any amount recovered shall be reimbursed to the 
  9.22  agency which paid the expenses.  The commissioner shall specify 
  9.23  requirements for reports, including fiscal reports, according to 
  9.24  section 256.01, subdivision 2, paragraph (17).  The state share 
  9.25  shall pay the entire amount of county agency expenditures.  
  9.26  Benefits shall be issued to recipients by the state or county 
  9.27  subject to provisions of section 256.017. 
  9.28     Sec. 8.  Minnesota Statutes 2002, section 256B.0625, 
  9.29  subdivision 20, is amended to read: 
  9.30     Subd. 20.  [MENTAL HEALTH CASE MANAGEMENT.] (a) To the 
  9.31  extent authorized by rule of the state agency, medical 
  9.32  assistance covers case management services to persons with 
  9.33  serious and persistent mental illness and children with severe 
  9.34  emotional disturbance.  Services provided under this section 
  9.35  must meet the relevant standards in sections 245.461 to 
  9.36  245.4888, the Comprehensive Adult and Children's Mental Health 
 10.1   Acts, Minnesota Rules, parts 9520.0900 to 9520.0926, and 
 10.2   9505.0322, excluding subpart 10. 
 10.3      (b) Entities meeting program standards set out in rules 
 10.4   governing family community support services as defined in 
 10.5   section 245.4871, subdivision 17, are eligible for medical 
 10.6   assistance reimbursement for case management services for 
 10.7   children with severe emotional disturbance when these services 
 10.8   meet the program standards in Minnesota Rules, parts 9520.0900 
 10.9   to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
 10.10     (c) Medical assistance and MinnesotaCare payment for mental 
 10.11  health case management shall be made on a monthly basis.  In 
 10.12  order to receive payment for an eligible child, the provider 
 10.13  must document at least a face-to-face contact with the child, 
 10.14  the child's parents, or the child's legal representative.  To 
 10.15  receive payment for an eligible adult, the provider must 
 10.16  document: 
 10.17     (1) at least a face-to-face contact with the adult or the 
 10.18  adult's legal representative; or 
 10.19     (2) at least a telephone contact with the adult or the 
 10.20  adult's legal representative and document a face-to-face contact 
 10.21  with the adult or the adult's legal representative within the 
 10.22  preceding two months. 
 10.23     (d) Payment for mental health case management provided by 
 10.24  county or state staff shall be based on the monthly rate 
 10.25  methodology under section 256B.094, subdivision 6, paragraph 
 10.26  (b), with separate rates calculated for child welfare and mental 
 10.27  health, and within mental health, separate rates for children 
 10.28  and adults. 
 10.29     (e) Payment for mental health case management provided by 
 10.30  Indian health services or by agencies operated by Indian tribes 
 10.31  may be made according to this section or other relevant 
 10.32  federally approved rate setting methodology. 
 10.33     (f) Payment for mental health case management provided by 
 10.34  vendors who contract with a county or Indian tribe shall be 
 10.35  based on a monthly rate negotiated by the host county or tribe.  
 10.36  The negotiated rate must not exceed the rate charged by the 
 11.1   vendor for the same service to other payers.  If the service is 
 11.2   provided by a team of contracted vendors, the county or tribe 
 11.3   may negotiate a team rate with a vendor who is a member of the 
 11.4   team.  The team shall determine how to distribute the rate among 
 11.5   its members.  No reimbursement received by contracted vendors 
 11.6   shall be returned to the county or tribe, except to reimburse 
 11.7   the county or tribe for advance funding provided by the county 
 11.8   or tribe to the vendor. 
 11.9      (g) If the service is provided by a team which includes 
 11.10  contracted vendors, tribal staff, and county or state staff, the 
 11.11  costs for county or state staff participation in the team shall 
 11.12  be included in the rate for county-provided services.  In this 
 11.13  case, the contracted vendor, the tribal agency, and the county 
 11.14  may each receive separate payment for services provided by each 
 11.15  entity in the same month.  In order to prevent duplication of 
 11.16  services, each entity must document, in the recipient's file, 
 11.17  the need for team case management and a description of the roles 
 11.18  of the team members. 
 11.19     (h) The commissioner shall calculate the nonfederal share 
 11.20  of actual medical assistance and general assistance medical care 
 11.21  payments for each county, based on the higher of calendar year 
 11.22  1995 or 1996, by service date, project that amount forward to 
 11.23  1999, and transfer one-half of the result from medical 
 11.24  assistance and general assistance medical care to each county's 
 11.25  mental health grants under sections 245.4886 and 256E.12 for 
 11.26  calendar year 1999.  The annualized minimum amount added to each 
 11.27  county's mental health grant shall be $3,000 per year for 
 11.28  children and $5,000 per year for adults.  The commissioner may 
 11.29  reduce the statewide growth factor in order to fund these 
 11.30  minimums.  The annualized total amount transferred shall become 
 11.31  part of the base for future mental health grants for each county.
 11.32     (i) Any net increase in revenue to the county or tribe as a 
 11.33  result of the change in this section must be used to provide 
 11.34  expanded mental health services as defined in sections 245.461 
 11.35  to 245.4888, the Comprehensive Adult and Children's Mental 
 11.36  Health Acts, excluding inpatient and residential treatment.  For 
 12.1   adults, increased revenue may also be used for services and 
 12.2   consumer supports which are part of adult mental health projects 
 12.3   approved under Laws 1997, chapter 203, article 7, section 25.  
 12.4   For children, increased revenue may also be used for respite 
 12.5   care and nonresidential individualized rehabilitation services 
 12.6   as defined in section 245.492, subdivisions 17 and 23.  
 12.7   "Increased revenue" has the meaning given in Minnesota Rules, 
 12.8   part 9520.0903, subpart 3.  
 12.9      (j) Notwithstanding section 256B.19, subdivision 1, the 
 12.10  nonfederal share of costs for mental health case management 
 12.11  shall be provided by the recipient's county of responsibility, 
 12.12  as defined in sections 256G.01 to 256G.12, from sources other 
 12.13  than federal funds or funds used to match other federal funds.  
 12.14  If the service is provided by a tribal agency, the nonfederal 
 12.15  share, if any, shall be provided by the recipient's tribe.  
 12.16     (k) (j) The commissioner may suspend, reduce, or terminate 
 12.17  the reimbursement to a provider that does not meet the reporting 
 12.18  or other requirements of this section.  The county of 
 12.19  responsibility, as defined in sections 256G.01 to 256G.12, or, 
 12.20  if applicable, the tribal agency, is responsible for any federal 
 12.21  disallowances.  The county or tribe may share this 
 12.22  responsibility with its contracted vendors.  
 12.23     (l) (k) The commissioner shall set aside a portion of the 
 12.24  federal funds earned under this section to repay the special 
 12.25  revenue maximization account under section 256.01, subdivision 
 12.26  2, clause (15).  The repayment is limited to: 
 12.27     (1) the costs of developing and implementing this section; 
 12.28  and 
 12.29     (2) programming the information systems. 
 12.30     (m) (l) Payments to counties and tribal agencies for case 
 12.31  management expenditures under this section shall only be made 
 12.32  from federal earnings from services provided under this 
 12.33  section.  Payments to county-contracted vendors shall include 
 12.34  both the federal earnings and the county share. 
 12.35     (n) (m) Notwithstanding section 256B.041, county payments 
 12.36  for the cost of mental health case management services provided 
 13.1   by county or state staff shall not be made to the state 
 13.2   treasurer.  For the purposes of mental health case management 
 13.3   services provided by county or state staff under this section, 
 13.4   the centralized disbursement of payments to counties under 
 13.5   section 256B.041 consists only of federal earnings from services 
 13.6   provided under this section. 
 13.7      (o) (n) Case management services under this subdivision do 
 13.8   not include therapy, treatment, legal, or outreach services. 
 13.9      (p) (o) If the recipient is a resident of a nursing 
 13.10  facility, intermediate care facility, or hospital, and the 
 13.11  recipient's institutional care is paid by medical assistance, 
 13.12  payment for case management services under this subdivision is 
 13.13  limited to the last 180 days of the recipient's residency in 
 13.14  that facility and may not exceed more than six months in a 
 13.15  calendar year. 
 13.16     (q) (p) Payment for case management services under this 
 13.17  subdivision shall not duplicate payments made under other 
 13.18  program authorities for the same purpose. 
 13.19     (r) (q) By July 1, 2000, the commissioner shall evaluate 
 13.20  the effectiveness of the changes required by this section, 
 13.21  including changes in number of persons receiving mental health 
 13.22  case management, changes in hours of service per person, and 
 13.23  changes in caseload size. 
 13.24     (s) (r) For each calendar year beginning with the calendar 
 13.25  year 2001, the annualized amount of state funds for each county 
 13.26  determined under paragraph (h) shall be adjusted by the county's 
 13.27  percentage change in the average number of clients per month who 
 13.28  received case management under this section during the fiscal 
 13.29  year that ended six months prior to the calendar year in 
 13.30  question, in comparison to the prior fiscal year. 
 13.31     (t) (s) For counties receiving the minimum allocation of 
 13.32  $3,000 or $5,000 described in paragraph (h), the adjustment in 
 13.33  paragraph (s) shall be determined so that the county receives 
 13.34  the higher of the following amounts: 
 13.35     (1) a continuation of the minimum allocation in paragraph 
 13.36  (h); or 
 14.1      (2) an amount based on that county's average number of 
 14.2   clients per month who received case management under this 
 14.3   section during the fiscal year that ended six months prior to 
 14.4   the calendar year in question, times the average statewide grant 
 14.5   per person per month for counties not receiving the minimum 
 14.6   allocation. 
 14.7      (u) (t) The adjustments in paragraphs (s) (r) and 
 14.8   (t) (s) shall be calculated separately for children and adults. 
 14.9      Sec. 9.  Minnesota Statutes 2002, section 256B.0911, 
 14.10  subdivision 3, is amended to read: 
 14.11     Subd. 3.  [LONG-TERM CARE CONSULTATION TEAM.] (a) A 
 14.12  long-term care consultation team shall be established by the 
 14.13  county board of commissioners.  Each local consultation team 
 14.14  shall consist of at least one social worker and at least one 
 14.15  public health nurse from their respective county agencies.  The 
 14.16  board may designate public health or social services as the lead 
 14.17  agency for long-term care consultation services.  If a county 
 14.18  does not have a public health nurse available, it may request 
 14.19  approval from the commissioner to assign a county registered 
 14.20  nurse with at least one year experience in home care to 
 14.21  participate on the team.  Two or more counties may collaborate 
 14.22  to establish a joint local consultation team or teams. 
 14.23     (b) The team is responsible for providing long-term care 
 14.24  consultation services to all persons located in the county who 
 14.25  request the services, regardless of eligibility for Minnesota 
 14.26  health care programs. 
 14.27     Sec. 10.  Minnesota Statutes 2002, section 256F.13, 
 14.28  subdivision 1, is amended to read: 
 14.29     Subdivision 1.  [FEDERAL REVENUE ENHANCEMENT.] (a) [DUTIES 
 14.30  OF COMMISSIONER OF HUMAN SERVICES.] The commissioner of human 
 14.31  services may enter into an agreement with one or more family 
 14.32  services collaboratives to enhance federal reimbursement under 
 14.33  Title IV-E of the Social Security Act and federal administrative 
 14.34  reimbursement under Title XIX of the Social Security Act.  The 
 14.35  commissioner may contract with the department of children, 
 14.36  families, and learning for purposes of transferring the federal 
 15.1   reimbursement to the commissioner of children, families, and 
 15.2   learning to be distributed to the collaboratives according to 
 15.3   clause (2).  The commissioner shall have the following authority 
 15.4   and responsibilities regarding family services collaboratives: 
 15.5      (1) the commissioner shall submit amendments to state plans 
 15.6   and seek waivers as necessary to implement the provisions of 
 15.7   this section; 
 15.8      (2) the commissioner shall pay the federal reimbursement 
 15.9   earned under this subdivision to each collaborative based on 
 15.10  their earnings.  Payments to collaboratives for expenditures 
 15.11  under this subdivision will only be made of federal earnings 
 15.12  from services provided by the collaborative; 
 15.13     (3) the commissioner shall review expenditures of family 
 15.14  services collaboratives using reports specified in the agreement 
 15.15  with the collaborative to ensure that the base level of 
 15.16  expenditures is continued and new federal reimbursement is used 
 15.17  to expand education, social, health, or health-related services 
 15.18  to young children and their families; 
 15.19     (4) the commissioner may reduce, suspend, or eliminate a 
 15.20  family services collaborative's obligations to continue the base 
 15.21  level of expenditures or expansion of services if the 
 15.22  commissioner determines that one or more of the following 
 15.23  conditions apply: 
 15.24     (i) imposition of levy limits that significantly reduce 
 15.25  available funds for social, health, or health-related services 
 15.26  to families and children; 
 15.27     (ii) reduction in the net tax capacity of the taxable 
 15.28  property eligible to be taxed by the lead county or 
 15.29  subcontractor that significantly reduces available funds for 
 15.30  education, social, health, or health-related services to 
 15.31  families and children; 
 15.32     (iii) reduction in the number of children under age 19 in 
 15.33  the county, collaborative service delivery area, subcontractor's 
 15.34  district, or catchment area when compared to the number in the 
 15.35  base year using the most recent data provided by the state 
 15.36  demographer's office; or 
 16.1      (iv) termination of the federal revenue earned under the 
 16.2   family services collaborative agreement; 
 16.3      (5) the commissioner shall not use the federal 
 16.4   reimbursement earned under this subdivision in determining the 
 16.5   allocation or distribution of other funds to counties or 
 16.6   collaboratives; 
 16.7      (6) (5) the commissioner may suspend, reduce, or terminate 
 16.8   the federal reimbursement to a provider that does not meet the 
 16.9   reporting or other requirements of this subdivision; 
 16.10     (7) (6) the commissioner shall recover from the family 
 16.11  services collaborative any federal fiscal disallowances or 
 16.12  sanctions for audit exceptions directly attributable to the 
 16.13  family services collaborative's actions in the integrated fund, 
 16.14  or the proportional share if federal fiscal disallowances or 
 16.15  sanctions are based on a statewide random sample; and 
 16.16     (8) (7) the commissioner shall establish criteria for the 
 16.17  family services collaborative for the accounting and financial 
 16.18  management system that will support claims for federal 
 16.19  reimbursement. 
 16.20     (b)  [FAMILY SERVICES COLLABORATIVE RESPONSIBILITIES.] The 
 16.21  family services collaborative shall have the following authority 
 16.22  and responsibilities regarding federal revenue enhancement: 
 16.23     (1) the family services collaborative shall be the party 
 16.24  with which the commissioner contracts.  A lead county shall be 
 16.25  designated as the fiscal agency for reporting, claiming, and 
 16.26  receiving payments; 
 16.27     (2) the family services collaboratives may enter into 
 16.28  subcontracts with other counties, school districts, special 
 16.29  education cooperatives, municipalities, and other public and 
 16.30  nonprofit entities for purposes of identifying and claiming 
 16.31  eligible expenditures to enhance federal reimbursement, or to 
 16.32  expand education, social, health, or health-related services to 
 16.33  families and children; 
 16.34     (3) the family services collaborative must continue the 
 16.35  base level of expenditures for education, social, health, or 
 16.36  health-related services to families and children from any state, 
 17.1   county, federal, or other public or private funding source 
 17.2   which, in the absence of the new federal reimbursement earned 
 17.3   under this subdivision, would have been available for those 
 17.4   services, except as provided in subdivision 1, paragraph (a), 
 17.5   clause (4).  The base year for purposes of this subdivision 
 17.6   shall be the four-quarter calendar year ending at least two 
 17.7   calendar quarters before the first calendar quarter in which the 
 17.8   new federal reimbursement is earned; 
 17.9      (4) the family services collaborative must use all new 
 17.10  federal reimbursement resulting from federal revenue enhancement 
 17.11  to expand expenditures for education, social, health, or 
 17.12  health-related services to families and children beyond the base 
 17.13  level, except as provided in subdivision 1, paragraph (a), 
 17.14  clause (4); 
 17.15     (5) the family services collaborative must ensure that 
 17.16  expenditures submitted for federal reimbursement are not made 
 17.17  from federal funds or funds used to match other federal funds.  
 17.18  Notwithstanding section 256B.19, subdivision 1, for the purposes 
 17.19  of family services collaborative expenditures under agreement 
 17.20  with the department, the nonfederal share of costs shall be 
 17.21  provided by the family services collaborative from sources other 
 17.22  than federal funds or funds used to match other federal funds; 
 17.23     (6) (4) the family services collaborative must develop and 
 17.24  maintain an accounting and financial management system adequate 
 17.25  to support all claims for federal reimbursement, including a 
 17.26  clear audit trail and any provisions specified in the agreement; 
 17.27  and 
 17.28     (7) (5) the family services collaborative shall submit an 
 17.29  annual report to the commissioner as specified in the agreement. 
 17.30     Sec. 11.  Minnesota Statutes 2002, section 256F.13, 
 17.31  subdivision 2, is amended to read: 
 17.32     Subd. 2.  [AGREEMENTS WITH FAMILY SERVICES COLLABORATIVES.] 
 17.33  At a minimum, the agreement between the commissioner and the 
 17.34  family services collaborative shall include the following 
 17.35  provisions: 
 17.36     (1) specific documentation of the expenditures eligible for 
 18.1   federal reimbursement; 
 18.2      (2) the process for developing and submitting claims to the 
 18.3   commissioner; 
 18.4      (3) specific identification of the education, social, 
 18.5   health, or health-related services to families and children 
 18.6   which are to be expanded with the federal reimbursement; 
 18.7      (4) reasonable reporting and review procedures ensuring 
 18.8   that the family services collaborative must continue the base 
 18.9   level of expenditures for the education, social, health, or 
 18.10  health-related services for families and children as specified 
 18.11  in subdivision 2, clause (3) that emphasize a small number of 
 18.12  data elements actually necessary for state decision making; 
 18.13     (5) reporting and review procedures to ensure that federal 
 18.14  revenue earned under this section is spent specifically to 
 18.15  expand education, social, health, or health-related services for 
 18.16  families and children as specified in subdivision 2, clause (4); 
 18.17     (6) (4) the period of time, not to exceed three years, 
 18.18  governing the terms of the agreement and provisions for 
 18.19  amendments to, and renewal of the agreement; and 
 18.20     (7) (5) an annual report prepared by the family services 
 18.21  collaborative. 
 18.22     Sec. 12.  Minnesota Statutes 2002, section 261.035, is 
 18.23  amended to read: 
 18.24     261.035 [FUNERALS BURIAL AT EXPENSE OF COUNTY.] 
 18.25     When a person dies in any county without apparent means to 
 18.26  provide for that person's funeral or final disposition burial or 
 18.27  cremation, the county board shall first investigate to determine 
 18.28  whether that person had contracted for any prepaid funeral 
 18.29  arrangements.  If arrangements have been made, the county shall 
 18.30  authorize arrangements to be implemented in accord with the 
 18.31  instructions of the deceased.  If it is determined that the 
 18.32  person did not leave sufficient means to defray the necessary 
 18.33  expenses of a funeral and final disposition burial or cremation, 
 18.34  nor any spouse of sufficient ability to procure the burial or 
 18.35  cremation, the county board shall provide for a funeral and 
 18.36  final disposition burial or cremation, being respectful of 
 19.1   cultural and religious preferences, of the person's remains to 
 19.2   be made at the expense of the county.  Any funeral and final 
 19.3   disposition burial or cremation provided at the expense of the 
 19.4   county shall be in accordance with religious and moral beliefs 
 19.5   of the decedent or the decedent's spouse or the decedent's next 
 19.6   of kin.  If the wishes of the decedent are not known and the 
 19.7   county has no information about the existence of or location of 
 19.8   any next of kin, the county may determine the method of final 
 19.9   disposition. 
 19.10     Sec. 13.  Minnesota Statutes 2002, section 393.07, 
 19.11  subdivision 1, is amended to read: 
 19.12     Subdivision 1.  [PUBLIC CHILD WELFARE PROGRAM.] (a) To 
 19.13  assist in carrying out the child protection, delinquency 
 19.14  prevention and family assistance responsibilities of the state, 
 19.15  the local social services agency shall administer a program of 
 19.16  social services and financial assistance to be known as the 
 19.17  public child welfare program.  The public child welfare program 
 19.18  shall be supervised by the commissioner of human services and 
 19.19  administered by the local social services agency in accordance 
 19.20  with law and with rules of the commissioner. 
 19.21     (b) The purpose of the public child welfare program is to 
 19.22  assure protection for and financial assistance to children who 
 19.23  are confronted with social, physical, or emotional problems 
 19.24  requiring protection and assistance.  These problems include, 
 19.25  but are not limited to the following: 
 19.26     (1) mental, emotional, or physical handicap; 
 19.27     (2) birth of a child to a mother who was not married to the 
 19.28  child's father when the child was conceived nor when the child 
 19.29  was born, including but not limited to costs of prenatal care, 
 19.30  confinement and other care necessary for the protection of a 
 19.31  child born to a mother who was not married to the child's father 
 19.32  at the time of the child's conception nor at the birth; 
 19.33     (3) dependency, neglect; 
 19.34     (4) delinquency; 
 19.35     (5) abuse or rejection of a child by its parents; 
 19.36     (6) absence of a parent or guardian able and willing to 
 20.1   provide needed care and supervision; 
 20.2      (7) need of parents for assistance with child rearing 
 20.3   problems, or in placing the child in foster care. 
 20.4      (c) A local social services agency shall make the services 
 20.5   of its public child welfare program available as required by 
 20.6   law, by the commissioner, or by the courts and shall cooperate 
 20.7   with other agencies, public or private, dealing with the 
 20.8   problems of children and their parents as provided in this 
 20.9   subdivision. 
 20.10     The public child welfare program shall be available in 
 20.11  divorce cases for investigations of children and home conditions 
 20.12  and for supervision of children when directed by the court 
 20.13  hearing the divorce. 
 20.14     (d) A local social services agency may rent, lease, or 
 20.15  purchase property, or in any other way approved by the 
 20.16  commissioner, contract with individuals or agencies to provide 
 20.17  needed facilities for foster care of children.  It may purchase 
 20.18  services or child care from duly authorized individuals, 
 20.19  agencies or institutions when in its judgment the needs of a 
 20.20  child or the child's family can best be met in this way. 
 20.21     Sec. 14.  Minnesota Statutes 2002, section 518.167, 
 20.22  subdivision 1, is amended to read: 
 20.23     Subdivision 1.  [COURT ORDER.] In contested custody 
 20.24  proceedings, and in other custody proceedings if a parent or the 
 20.25  child's custodian requests, the court may order an investigation 
 20.26  and report concerning custodial arrangements for the child.  If 
 20.27  the county elects to conduct an investigation, the county may 
 20.28  charge a fee.  The investigation and report may be made by the 
 20.29  county welfare agency or department of court services or a 
 20.30  private vendor. 
 20.31     Sec. 15.  [FISCAL YEAR 2004-2005 STATE MANDATE MORATORIUM.] 
 20.32     Subdivision 1.  [COUNTY MAY DENY, REDUCE, OR TERMINATE 
 20.33  SERVICES.] (a) Notwithstanding any state law or rule to the 
 20.34  contrary, a county may deny, reduce, or terminate services, 
 20.35  subject to the proportionality requirement in paragraph (b), if: 
 20.36     (1) the services are state-mandated services supervised by 
 21.1   the commissioners of health and human services, the 
 21.2   administration of which is delegated by state law or rule to the 
 21.3   counties; 
 21.4      (2) the county demonstrates at the meeting under 
 21.5   subdivision 2 that previous funds available to provide the 
 21.6   state-mandated services, whether from the state or federal 
 21.7   sources available to the county, are at least ten percent less 
 21.8   than the previous biennium; and 
 21.9      (3) the county's denial, reduction, or termination of 
 21.10  state-mandated services does not pose a significant threat to 
 21.11  public safety. 
 21.12     (b) If a county denies, reduces, or terminates 
 21.13  state-mandated services, the aggregate funding reduction due to 
 21.14  the denial, reduction, or termination must be proportional to 
 21.15  the shortfall in funding under paragraph (a). 
 21.16     (c) This section does not apply to a service or program 
 21.17  required by federal law. 
 21.18     Subd. 2.  [COUNTY NOTICE; MEETING.] At least 30 days before 
 21.19  denying, reducing, or terminating state-mandated services under 
 21.20  this section, the county must identify the denial, reduction, or 
 21.21  termination of services as an item of business in a meeting 
 21.22  notice for either a regular or special meeting of the county 
 21.23  board.  The county must provide the meeting notice at least ten 
 21.24  days before the meeting.  The county board must allow a 
 21.25  reasonable amount of time for persons to testify at the meeting 
 21.26  on the proposed denial, reduction, or termination of services. 
 21.27  The county board must accept both oral and written testimony.  
 21.28     Subd. 3.  [COUNTY REPORT TO DEPARTMENT AND LEGISLATURE.] At 
 21.29  least 30 days before denying, reducing, or terminating 
 21.30  state-mandated services under this section, the county must 
 21.31  notify the appropriate commissioner and the chairs of the house 
 21.32  and senate committees with jurisdiction over the budgets of the 
 21.33  departments of health and human services in writing of the 
 21.34  proposed denial, reduction, or termination of services under 
 21.35  this section.  The appropriate commissioner must respond in 
 21.36  writing to the county's notice and must approve or reject the 
 22.1   county's proposed denial, reduction, or termination of 
 22.2   state-mandated services within 30 days after receiving the 
 22.3   notice.  The commissioner may not reject the county's proposed 
 22.4   action without providing the county with adequate resources to 
 22.5   provide the state-mandated services or an alternative proposal 
 22.6   for the county to provide the state-mandated services within 
 22.7   existing resources.  If the appropriate commissioner does not 
 22.8   respond within 30 days, the county's proposed action is deemed 
 22.9   approved.  
 22.10     Subd. 4.  [APPEAL RIGHTS.] An individual whose application 
 22.11  for services is denied or whose services are reduced or 
 22.12  terminated solely on the basis of a county's action under this 
 22.13  section, does not have the right to a hearing under Minnesota 
 22.14  Statutes, section 256.045. 
 22.15     <b>[EFFECTIVE DATE; EXPIRATION DATE.]</b> This section is 
 22.16  effective the day following final enactment and expires June 30, 
 22.17  2005. 
 22.18     Sec. 16.  [MANDATE IDENTIFICATION; REPORT TO LEGISLATURE.] 
 22.19     The commissioners of health and human services must 
 22.20  identify required state services or programs in law or rule that 
 22.21  are under each agency's respective jurisdictions, the 
 22.22  administration or provision of which the state has delegated to 
 22.23  the counties.  For each state-mandated service or program, the 
 22.24  commissioner must describe: 
 22.25     (1) the year enacted and the scope of the service or 
 22.26  program; 
 22.27     (2) the funding sources for the service or program; 
 22.28     (3) related federal requirements and support; 
 22.29     (4) data on the costs, number of persons served, and the 
 22.30  cost of the county not providing the service or program; and 
 22.31     (5) alternatives to requiring the counties to administer or 
 22.32  provide the service or program. 
 22.33  The commissioners must seek the advice of the county officials 
 22.34  knowledgeable about the state-mandated services and programs, 
 22.35  county associations, consumer representatives, and service or 
 22.36  program providers.  Each commissioner must submit a report to 
 23.1   the house and senate committees with jurisdiction over the 
 23.2   budget of departments of health and human services by January 
 23.3   15, 2004. 
 23.4      <b>[EFFECTIVE DATE; EXPIRATION DATE.]</b> This section is 
 23.5   effective the day following final enactment and expires June 30, 
 23.6   2005. 
 23.7      Sec. 17.  [REPEALER.] 
 23.8      Minnesota Statutes 2002, sections 119B.11, subdivision 4; 
 23.9   145A.17, subdivision 9; 245.478; 245.4888; 245.714; 256B.0945, 
 23.10  subdivisions 6, 7, 8, and 10; 256B.83; and 256F.10, subdivision 
 23.11  7, are repealed.