1.1                          A bill for an act 
  1.2             relating to state government; appropriating money and 
  1.3             reducing appropriations for educational, health, human 
  1.4             services, corrections, economic development, 
  1.5             transportation, public safety, environmental, natural 
  1.6             resources, agricultural, and state government 
  1.7             purposes; establishing and modifying certain programs; 
  1.8             providing for regulation of certain activities and 
  1.9             practices; providing for accounts, assessments, and 
  1.10            fees; providing for the payment of certain refunds; 
  1.11            amending Minnesota Statutes 2002, sections 16A.17, by 
  1.12            adding a subdivision; 16B.47; 16B.48, subdivision 2; 
  1.13            16B.49; 16C.08, subdivisions 2, 3; 16C.09; 16E.07, 
  1.14            subdivision 9; 115A.908, subdivision 2; 116P.05, 
  1.15            subdivision 2; 119B.011, by adding a subdivision; 
  1.16            119B.09, subdivisions 1, 2; 119B.12, subdivision 2; 
  1.17            124D.135, subdivision 8; 124D.16, subdivision 6; 
  1.18            124D.20, by adding subdivisions; 124D.52, subdivision 
  1.19            1; 124D.531, subdivisions 1, 5; 136F.77, subdivision 
  1.20            3; 252.27, subdivision 2a; 256.9657, subdivision 1; 
  1.21            256.969, subdivision 3a; 256B.056, subdivisions 1a, 4; 
  1.22            256B.057, subdivision 2; 256B.06, subdivisions 4, 5; 
  1.23            256B.0625, subdivision 13, by adding a subdivision; 
  1.24            256B.0635, subdivisions 1, 2; 256B.19, subdivision 1d; 
  1.25            256B.195, subdivision 4; 256B.32, subdivision 1; 
  1.26            256B.431, subdivision 23, by adding a subdivision; 
  1.27            256B.75; 256J.08, subdivision 85; 256J.11, subdivision 
  1.28            1; 256J.48, subdivision 1; 256J.52, subdivision 2; 
  1.29            256J.53, subdivision 1; 256L.07, subdivision 1; 
  1.30            256L.17, subdivision 2; 268.186; 289A.56, subdivision 
  1.31            4; 297A.75, subdivision 4; 297F.10, subdivision 1; 
  1.32            299A.42; 299A.44, subdivision 1; 299A.465, 
  1.33            subdivisions 1, 4; Laws 1997, chapter 203, article 9, 
  1.34            section 21, as amended; Laws 2001, First Special 
  1.35            Session chapter 3, article 1, section 17, subdivision 
  1.36            11, as amended; Laws 2001, First Special Session 
  1.37            chapter 8, article 4, section 11, as amended; Laws 
  1.38            2001, First Special Session chapter 9, article 2, 
  1.39            section 31; Laws 2002, chapter 220, article 13, 
  1.40            section 9, subdivision 2, as amended; repealing 
  1.41            Minnesota Statutes 2002, sections 16B.50; 16C.07; 
  1.42            43A.047; 241.41; 241.42; 241.43; 241.44; 241.441; 
  1.43            241.45; 256.973; 256B.056, subdivisions 1c, 3c; 
  1.44            256B.195, subdivision 5; 256D.053; 256J.11, 
  1.45            subdivisions 2, 3; Laws 1999, chapter 205, article 1, 
  1.46            section 63. 
  2.1   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.2                              ARTICLE 1 
  2.3                          EDUCATION FINANCE 
  2.4   Section 1.  [EDUCATION APPROPRIATIONS AND REDUCTIONS.] 
  2.5      The dollar amounts in the columns under "APPROPRIATION 
  2.6   CHANGE" are added to or, if shown in parentheses, are subtracted 
  2.7   from the appropriations in Laws 2001, First Special Session 
  2.8   chapter 3 or 6, as amended, by Laws 2002, chapter 220 or 374, as 
  2.9   amended, or other law to the specified agencies.  The 
  2.10  appropriations are from the general fund or other named fund and 
  2.11  are available for the fiscal years indicated for each purpose.  
  2.12  The figure "2003" means that the addition to or subtraction from 
  2.13  the appropriations listed under the figure is for the fiscal 
  2.14  year ending June 30, 2003. 
  2.15                                                         2003 
  2.16  APPROPRIATION REDUCTIONS                          $  (7,500,000)
  2.17                                             APPROPRIATION CHANGE
  2.18  Sec. 2.  APPROPRIATIONS; DEPARTMENT OF
  2.19  CHILDREN, FAMILIES, AND LEARNING 
  2.20  Subdivision 1.  Department Operating Budget          (1,044,000) 
  2.21  The sums in this subdivision are 
  2.22  subtracted from the general fund 
  2.23  appropriations to the department of 
  2.24  children, families, and learning for 
  2.25  operating purposes.  
  2.26  Subd. 2. Department Aid and Grants                    (223,000) 
  2.27  The sums in this subdivision are 
  2.28  subtracted from the general fund 
  2.29  appropriation to the department of 
  2.30  children, families, and learning for 
  2.31  aids and grants. 
  2.32  Subd. 3.  School Readiness                            (791,000) 
  2.33  Subd. 4.  Early Childhood  
  2.34  Family Education                                      (769,000)
  2.35  Subd. 5.  Community Education                       (1,807,000) 
  2.36  Subd. 6.  Adult Basic Education Aid                 (1,622,000) 
  2.37  Subd. 7.  State Revenue for American Indian 
  2.38  Tribal Contract or Grant Schools                      (825,000)
  2.39  If the appropriation for this program 
  2.40  is insufficient, state aid must be 
  2.41  proportionately reduced. 
  2.42  Subd. 8.  Best Practice Grants                        (363,000) 
  3.1   Subd. 9.  Magnet School Start-Up Grants                (50,000) 
  3.2   If the appropriation for this program 
  3.3   is insufficient, state aid must be 
  3.4   proportionately reduced.  
  3.5   Sec. 3.  APPROPRIATIONS; PERPICH CENTER 
  3.6   FOR ARTS EDUCATION                                    (331,000)
  3.7      Sec. 4.  Minnesota Statutes 2002, section 124D.135, 
  3.8   subdivision 8, is amended to read: 
  3.9      Subd. 8.  [RESERVE ACCOUNT LIMIT.] (a) Under this section, 
  3.10  the average balance, during the most recent three-year period in 
  3.11  a district's early childhood family education reserve account on 
  3.12  June 30 of each year, adjusted for any prior reductions under 
  3.13  this subdivision, must not be greater than 25 percent of the sum 
  3.14  of the district's maximum early childhood family education 
  3.15  annual revenue under subdivision 1, excluding adjustments under 
  3.16  this subdivision, plus any fees, grants, or other revenue 
  3.17  received by the district for early childhood family education 
  3.18  programs for the prior year. 
  3.19     (b) If a district's adjusted average early childhood family 
  3.20  education reserve over the three-year period is in excess of 25 
  3.21  percent of the prior year annual revenue the limit under 
  3.22  paragraph (a), the district's early childhood family education 
  3.23  state aid and levy authority for the current school year must be 
  3.24  reduced by the lesser of the current year revenue under 
  3.25  subdivision 1 or the excess reserve amount.  The aid reduction 
  3.26  equals the product of the lesser of the excess reserve amount or 
  3.27  the current year revenue under subdivision 1 times the ratio of 
  3.28  the district's aid for the prior current year under subdivision 
  3.29  4 to the district's revenue for the prior current year under 
  3.30  subdivision 1.  The levy reduction equals the excess reserve 
  3.31  amount minus the aid reduction.  The commissioner must 
  3.32  reallocate aid and levy reduced under this subdivision to other 
  3.33  eligible early childhood family education programs in proportion 
  3.34  to each district's revenue for the prior year under subdivision 
  3.35  1.  For purposes of this paragraph, if a district does not levy 
  3.36  the entire amount permitted under subdivision 3, the revenue 
  3.37  under subdivision 1 must be reduced in proportion to the actual 
  4.1   amount levied.  
  4.2      (b) (c) Notwithstanding paragraph (a), for fiscal year 
  4.3   2003, the excess reserve amount shall be computed using the 
  4.4   balance in a district's early childhood family education reserve 
  4.5   account on June 30, 2002.  For fiscal year 2004, the excess 
  4.6   reserve amount shall be computed using the adjusted average 
  4.7   balance in a district's early childhood family education reserve 
  4.8   account on June 30, 2002, and June 30, 2003. 
  4.9      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  4.10  fiscal year 2003. 
  4.11     Sec. 5.  Minnesota Statutes 2002, section 124D.16, 
  4.12  subdivision 6, is amended to read: 
  4.13     Subd. 6.  [RESERVE ACCOUNT LIMIT.] (a) Under this section, 
  4.14  the average balance, during the most recent three-year period, 
  4.15  in a district's school readiness reserve account on June 30 of 
  4.16  each year, adjusted for any prior reductions under this 
  4.17  subdivision, must not be greater than 25 percent of the 
  4.18  district's school readiness annual revenue for the prior year, 
  4.19  excluding adjustments under this subdivision.  
  4.20     (b) If a district's adjusted average school readiness 
  4.21  reserve over the three-year period is in excess of 25 percent of 
  4.22  the prior year annual revenue the limit under paragraph (a), the 
  4.23  district's current year school readiness state aid must be 
  4.24  reduced by the lesser of the excess reserve amount or the 
  4.25  current year aid.  The commissioner must reallocate aid reduced 
  4.26  under this subdivision to other eligible school readiness 
  4.27  programs in proportion to each district's aid for the prior year 
  4.28  under subdivision 2.  
  4.29     (b) (c) Notwithstanding paragraph (a), for fiscal year 
  4.30  2003, the excess reserve amount shall be computed using the 
  4.31  balance in a district's school readiness reserve account on June 
  4.32  30, 2002.  For fiscal year 2004, the excess reserve amount shall 
  4.33  be computed using the adjusted average balance in a district's 
  4.34  school readiness reserve account on June 30, 2002, and June 30, 
  4.35  2003. 
  4.36     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  5.1   fiscal year 2003. 
  5.2      Sec. 6.  Minnesota Statutes 2002, section 124D.20, is 
  5.3   amended by adding a subdivision to read: 
  5.4      Subd. 11.  [RESERVE ACCOUNT LIMIT.] (a) Under this section, 
  5.5   the sum of the average balances during the most recent 
  5.6   three-year period in a district's community education reserve 
  5.7   account and unreserved/undesignated community service fund 
  5.8   account on June 30 of each year, adjusted for any prior 
  5.9   reductions under this subdivision, must not be greater than 25 
  5.10  percent of the sum of the district's maximum total community 
  5.11  education revenue under subdivision 1, excluding adjustments 
  5.12  under this subdivision, plus the district's additional community 
  5.13  education levy under section 124D.21, plus any fees, grants, or 
  5.14  other revenue received by the district for community education 
  5.15  programs for the prior year.  For purposes of this paragraph, 
  5.16  "community education programs" means programs according to 
  5.17  subdivisions 8, paragraph (a), and 9, and section 124D.19, 
  5.18  subdivision 12, excluding early childhood family education 
  5.19  programs under section 124D.13, school readiness programs under 
  5.20  sections 124D.15 and 124D.17, and adult basic education programs 
  5.21  under section 124D.52. 
  5.22     (b) If the sum of the average balances during the most 
  5.23  recent three-year period in a district's community education 
  5.24  reserve account and unreserved/undesignated community service 
  5.25  fund account on June 30 of each year, adjusted for any prior 
  5.26  reductions under this subdivision, is in excess of the limit 
  5.27  under paragraph (a), the district's community education state 
  5.28  aid and levy authority for the current school year must be 
  5.29  reduced by the lesser of the current year revenue under 
  5.30  subdivision 1 or the excess reserve amount.  The aid reduction 
  5.31  equals the product of the lesser of the excess reserve amount or 
  5.32  the current year revenue under subdivision 1 times the ratio of 
  5.33  the district's aid for the current year under subdivision 7 to 
  5.34  the district's revenue for the current year under subdivision 
  5.35  1.  The levy reduction equals the excess reserve amount minus 
  5.36  the aid reduction.  For purposes of this paragraph, if a 
  6.1   district does not levy the entire amount permitted under 
  6.2   subdivision 5 or 6, the revenue under subdivision 1 must be 
  6.3   reduced in proportion to the actual amount levied. 
  6.4      (c) Notwithstanding paragraph (a), for fiscal year 2003, 
  6.5   the excess reserve amount shall be computed using the balances 
  6.6   in a district's community education reserve account and 
  6.7   unreserved/undesignated community service fund account on June 
  6.8   30, 2002.  For fiscal year 2004, the excess reserve amount shall 
  6.9   be computed using the adjusted average balances in a district's 
  6.10  community education reserve account and unreserved/undesignated 
  6.11  community service fund account on June 30, 2002, and June 30, 
  6.12  2003. 
  6.13     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  6.14  fiscal year 2003. 
  6.15     Sec. 7.  Minnesota Statutes 2002, section 124D.20, is 
  6.16  amended by adding a subdivision to read: 
  6.17     Subd. 12.  [WAIVER.] (a) If a district anticipates that the 
  6.18  reserve account may exceed the 25 percent limit established 
  6.19  under subdivision 11 because of extenuating circumstances, prior 
  6.20  approval to exceed the limit must be obtained in writing from 
  6.21  the commissioner. 
  6.22     (b) Notwithstanding paragraph (a), for fiscal year 2003, a 
  6.23  district may submit a waiver request within 30 days of the date 
  6.24  of final enactment. 
  6.25     Sec. 8.  Minnesota Statutes 2002, section 124D.52, 
  6.26  subdivision 1, is amended to read: 
  6.27     Subdivision 1.  [PROGRAM REQUIREMENTS.] (a) An adult basic 
  6.28  education program is a day or evening program offered by a 
  6.29  district that is for people over 16 years of age who do not 
  6.30  attend an elementary or secondary school.  The program offers 
  6.31  academic instruction necessary to earn a high school diploma or 
  6.32  equivalency certificate.  Tuition and fees may not be charged to 
  6.33  a learner for instruction paid under this section, except for 
  6.34     (b) Notwithstanding any law to the contrary, a school board 
  6.35  or the governing body of a consortium offering an adult basic 
  6.36  education program may adopt a sliding fee schedule based on a 
  7.1   family's income, but must waive the fee for participants who are 
  7.2   under the age of 21 or unable to pay.  The fees charged must be 
  7.3   designed to enable individuals of all socioeconomic levels to 
  7.4   participate in the program.  A program may charge a security 
  7.5   deposit to assure return of materials, supplies, and equipment. 
  7.6      (c) Each approved adult basic education program must 
  7.7   develop a memorandum of understanding with the local workforce 
  7.8   development centers located in the approved program's service 
  7.9   delivery area.  The memorandum of understanding must describe 
  7.10  how the adult basic education program and the workforce 
  7.11  development centers will cooperate and coordinate services to 
  7.12  provide unduplicated, efficient, and effective services to 
  7.13  clients.  
  7.14     (d) Adult basic education aid must be spent for adult basic 
  7.15  education purposes as specified in sections 124D.518 to 124D.531.
  7.16     Sec. 9.  Minnesota Statutes 2002, section 124D.531, 
  7.17  subdivision 1, is amended to read: 
  7.18     Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] 
  7.19  (a) The state total adult basic education aid for fiscal year 
  7.20  2001 2002 equals $30,157,000 $32,570,000.  The state total adult 
  7.21  basic education aid for later years equals: 
  7.22     (1) the state total adult basic education aid for the 
  7.23  preceding fiscal year; times 
  7.24     (2) the lesser of: 
  7.25     (i) 1.08 1.02, or 
  7.26     (ii) the greater of 1.00 or the ratio of the state total 
  7.27  contact hours in the first prior program year to the state total 
  7.28  contact hours in the second prior program year.  
  7.29     (b) Beginning in fiscal year 2002, two percent of the state 
  7.30  total adult basic education aid must be set aside for adult 
  7.31  basic education supplemental service grants under section 
  7.32  124D.522.  
  7.33     (b) (c) The state total adult basic education aid, 
  7.34  excluding basic population aid, equals the difference between 
  7.35  the amount computed in paragraph (a), and the state total basic 
  7.36  population aid under subdivision 2. 
  8.1      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  8.2   following final enactment and applies to revenue for fiscal year 
  8.3   2003 and later.  
  8.4      Sec. 10.  Minnesota Statutes 2002, section 124D.531, 
  8.5   subdivision 5, is amended to read: 
  8.6      Subd. 5.  [AID GUARANTEE.] Notwithstanding subdivisions 
  8.7   1, 2, 3, and 4, for fiscal year 2001, any years 2004 and 2005 
  8.8   only, adult basic education aid for an adult basic education 
  8.9   program qualifying for aid under this section, that receives 
  8.10  less state aid than in fiscal year 2000 must receive additional 
  8.11  aid equal to the difference between its fiscal year 2000 aid and 
  8.12  its fiscal year 2001 aid must equal at least its aid amount for 
  8.13  fiscal year 2003. 
  8.14     Sec. 11.  [LEVY REDUCTION; DISTRICTS IN STATUTORY OPERATING 
  8.15  DEBT.] 
  8.16     For fiscal years 2003 and 2004 only, a school district that 
  8.17  is in statutory operating debt as defined in Minnesota Statutes, 
  8.18  section 123B.81, as of June 30 of the previous year is not 
  8.19  subject to a levy reduction under Minnesota Statutes, section 
  8.20  124D.20, subdivision 11. 
  8.21     Sec. 12.  [EFFECTIVE DATE.] 
  8.22     Sections 1 to 11 are effective the day following final 
  8.23  enactment unless otherwise specified. 
  8.24                             ARTICLE 2 
  8.25                          HIGHER EDUCATION 
  8.26  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  8.27     The dollar amounts in the columns marked "APPROPRIATIONS" 
  8.28  are added to or, if shown in parentheses, are subtracted from 
  8.29  the appropriations in Laws 2001, First Special Session chapter 
  8.30  1, as amended by Laws 2001, First Special Session chapter 220 or 
  8.31  374, or other law to the specified agencies.  The appropriations 
  8.32  are from the general fund or any other named fund and are 
  8.33  available for the fiscal years indicated for each purpose.  The 
  8.34  figure 2003 means that the addition to or subtraction from the 
  8.35  appropriations listed under the figure are for the fiscal year 
  8.36  ending June 30, 2003. 
  9.1                           SUMMARY BY FUND
  9.2                                                          2003 
  9.3   General                                          $ (51,500,000)
  9.4                    SUMMARY BY AGENCY - ALL FUNDS
  9.5                                           2003           TOTAL
  9.6   Higher Education 
  9.7   Services Office                                  $ ( 1,500,000)
  9.8   Board of Trustees of 
  9.9   the Minnesota State Colleges 
  9.10  and Universities                                 $ (25,000,000)
  9.11  Board of Regents of the 
  9.12  University of Minnesota                          $ (25,000,000)
  9.13                                APPROPRIATIONS 
  9.14                            Available for the Year 
  9.15                                Ending June 30 
  9.16                                                         2003  
  9.17  Sec. 2.  HIGHER EDUCATION     
  9.18  SERVICES OFFICE
  9.19  Subdivision 1.  Total 
  9.20  Appropriation Changes                              ( 1,500,000)
  9.21  The base appropriation for fiscal years 
  9.22  2004 and 2005 is reduced by this amount.
  9.23  The higher education services office 
  9.24  shall not reduce grant awards of the 
  9.25  state grant program under Minnesota 
  9.26  Statutes, section 136A.121, to meet the 
  9.27  reductions under this section.  
  9.28  Subd. 2.  State Grants, Fiscal Year 2003
  9.29  Notwithstanding Minnesota Statutes, 
  9.30  section 136A.121, subdivision 9a, the 
  9.31  higher education services office may 
  9.32  eliminate state grant funding for 
  9.33  summer school programs and may 
  9.34  establish a closing date for grant 
  9.35  funding for grants in fiscal year 2003. 
  9.36  Sec. 3.  BOARD OF TRUSTEES OF THE
  9.37  MINNESOTA STATE COLLEGES AND UNIVERSITIES
  9.38  Total Appropriation Changes                        (25,000,000)
  9.39  This amount is added to the base 
  9.40  appropriation reductions for fiscal 
  9.41  years 2004 and 2005 in Laws 2002, 
  9.42  chapter 220, article 5, section 3. 
  9.43  Sec. 4.  BOARD OF REGENTS OF
  9.44  THE UNIVERSITY OF MINNESOTA
  9.45  Total Appropriation Changes                        (25,000,000)
  9.46  This amount is added to the base 
  9.47  appropriation reductions for fiscal 
  9.48  years 2004 and 2005 in Laws 2002, 
  9.49  chapter 220, article 5, section 4. 
  9.50  Reductions under this section may be 
  9.51  made to general fund appropriations in 
 10.1   Laws 2001, First Special Session 
 10.2   chapter 1, article 1, section 4, except 
 10.3   for appropriations to the agricultural 
 10.4   and extension service under Laws 2001, 
 10.5   First Special Session chapter 1, 
 10.6   article 1, section 4, subdivision 4, 
 10.7   paragraph (a). 
 10.8      Sec. 5.  [SELF LOAN RESERVE FUND TRANSFER.] 
 10.9      By June 30, 2003, notwithstanding Minnesota Statutes, 
 10.10  section 136A.171, or any other law to the contrary, the higher 
 10.11  education services office shall transfer $30,000,000 of 
 10.12  unrestricted balances in the SELF loan reserve fund to the 
 10.13  general fund.  
 10.14     Sec. 6.  [EFFECTIVE DATE.] 
 10.15     Sections 1 to 5 are effective the day following final 
 10.16  enactment, unless otherwise specified. 
 10.17                             ARTICLE 3 
 10.18                     HEALTH AND HUMAN SERVICES 
 10.19  Section 1.  [HEALTH AND HUMAN SERVICES REDUCTIONS.] 
 10.20     The dollar amounts in the columns under "APPROPRIATION 
 10.21  CHANGE" are added to or, if shown in parentheses, are subtracted 
 10.22  from the appropriations in Laws 2001, First Special Session 
 10.23  chapter 9, as amended by Laws 2002, chapter 220 or 374, as 
 10.24  amended, or other law to the specified agencies.  The 
 10.25  appropriations are from the general fund or other named fund and 
 10.26  are available for the fiscal years indicated for each purpose.  
 10.27  The figure "2003" means that the addition to or subtraction from 
 10.28  the appropriations listed under the figure is for the fiscal 
 10.29  year ending June 30, 2003. 
 10.30                                                         2003
 10.31                                             APPROPRIATION CHANGE
 10.32  Sec. 2.  COMMISSIONER OF HUMAN SERVICES 
 10.33  Subdivision 1.  Total
 10.34  Appropriation Reductions                             (8,088,000)
 10.35                Summary by Fund
 10.36  General                            (8,088,000)
 10.37  Subd. 2.  Agency Management 
 10.38  General                                              (3,333,000)
 10.39  [ADMINISTRATION REDUCTION.] The 
 10.40  department's general fund fiscal year 
 11.1   2003 administrative appropriation is 
 11.2   reduced by $3,333,000. 
 11.3   [SPECIAL REVENUE FUND TRANSFER.] 
 11.4   Notwithstanding any law to the 
 11.5   contrary, excluding accounts authorized 
 11.6   under Minnesota Statutes, section 
 11.7   16A.1286, and chapter 254B, the 
 11.8   commissioner shall transfer $1,200,000 
 11.9   of uncommitted special revenue fund 
 11.10  balances to the general fund upon final 
 11.11  enactment.  The actual transfers shall 
 11.12  be identified within the standard 
 11.13  information provided to the chairs of 
 11.14  the house health and human services 
 11.15  finance committee and the senate 
 11.16  health, human services, and corrections 
 11.17  budget division in December 2003. 
 11.18  [STATE-OPERATED SERVICES TRANSFER.] The 
 11.19  commissioner shall transfer $3,200,000 
 11.20  from the Traumatic Brain Injury 
 11.21  Enterprise, $1,000,000 from lease 
 11.22  income, and $500,000 from the ICF/MR 
 11.23  depreciation accounts to the general 
 11.24  fund upon final enactment. 
 11.25  Subd. 3.  Administrative
 11.26  Reimbursement/Pass-through
 11.27  Federal TANF                                          1,022,000
 11.28  [TANF INDIRECT COSTS.] The fiscal year 
 11.29  2003 federal TANF appropriation for 
 11.30  TANF indirect costs is increased by 
 11.31  $1,022,000.  Notwithstanding Minnesota 
 11.32  Statutes, section 256J.02, subdivision 
 11.33  5, the limit on TANF indirect cost 
 11.34  liability for fiscal year 2003 shall be 
 11.35  $3,951,000.  For the calendar quarter 
 11.36  starting October 1, 2002, and until the 
 11.37  indirect cost liability limit is 
 11.38  reached, the commissioner shall 
 11.39  reimburse the general fund a rate of 
 11.40  100 percent of TANF-allowable indirect 
 11.41  costs. 
 11.42  Subd. 4.  Children's Services Grants 
 11.43  General                                                (750,000)
 11.44  [CRIMINAL JUSTICE TRAINING GRANT.] The 
 11.45  fiscal year 2003 appropriation for the 
 11.46  criminal justice training grant is 
 11.47  reduced by $5,000. 
 11.48  [FETAL ALCOHOL SYNDROME GRANT.] The 
 11.49  fiscal year 2003 appropriation for the 
 11.50  fetal alcohol syndrome grant is reduced 
 11.51  by $106,000. 
 11.52  [FOSTER AND ADOPT RECRUITMENT GRANT.] 
 11.53  The fiscal year 2003 appropriation for 
 11.54  the foster and adopt recruitment grant 
 11.55  is reduced by $55,000. 
 11.56  [ADOPTION ASSISTANCE AND RELATIVE 
 11.57  CUSTODY ASSISTANCE GRANTS.] The fiscal 
 11.58  year 2003 appropriation for the 
 11.59  adoption assistance and relative 
 11.60  custody assistance grants is reduced by 
 12.1   $584,000. 
 12.2   Subd. 5.  MA Basic Health Care Grants -
 12.3   Families and Children 
 12.4   General                                              (5,734,000)
 12.5   Subd. 6.  MA Basic Health Care Grants -  
 12.6   Elderly and Disabled
 12.7   General                                              (1,409,000)
 12.8   Subd. 7.  General Assistance Medical 
 12.9   Care Grants
 12.10  General                                                (417,000)
 12.11  Subd. 8.  Health Care Policy Administration 
 12.12  General                                                  (5,000)
 12.13  Subd. 9.  Prescription Drug Program 
 12.14  General                                                (247,000)
 12.15  Subd. 10.  Aging and Adult Service Grants 
 12.16  General                                                (776,000)
 12.17  [HOME SHARE GRANT.] The fiscal year 
 12.18  2003 appropriation for the home share 
 12.19  grant is reduced by $156,000. 
 12.20  [COMMUNITY SERVICE GRANT.] The fiscal 
 12.21  year 2003 appropriation for the 
 12.22  community service grant is reduced by 
 12.23  $515,000. 
 12.24  [SAIL GRANTS.] The fiscal year 2003 
 12.25  appropriation for SAIL grants under 
 12.26  Minnesota Statutes, section 256B.0917, 
 12.27  is reduced by $28,000.  This is a 
 12.28  onetime reduction and does not affect 
 12.29  base funding for the program. 
 12.30  [COMMUNITY SERVICES DEVELOPMENT 
 12.31  GRANTS.] The fiscal year 2003 
 12.32  appropriation for community services 
 12.33  development grants under Minnesota 
 12.34  Statutes, section 256.9754, is reduced 
 12.35  by $39,000.  This is a onetime 
 12.36  reduction and does not affect base 
 12.37  funding for the program. 
 12.38  [HEALTH CARE CONSUMER ASSISTANCE 
 12.39  GRANTS.] The fiscal year 2003 
 12.40  appropriation for health care consumer 
 12.41  assistance grants under Minnesota 
 12.42  Statutes, section 256.9772, is reduced 
 12.43  by $38,000.  This is a onetime 
 12.44  reduction and does not affect base 
 12.45  funding for the program. 
 12.46  Subd. 11.  Medical Assistance Long-term Care
 12.47  Waivers and Home Care Grants 
 12.48  General                                                 66,000 
 12.49  [TARGETED CASE MANAGEMENT FOR HOME CARE 
 12.50  RECIPIENTS.] Implementation of the 
 12.51  targeted case management benefit for 
 13.1   home care recipients, pursuant to Laws 
 13.2   2001, First Special Session chapter 9, 
 13.3   article 3, sections 20, 21, 23 to 25, 
 13.4   27, and 28 (Minnesota Statutes, section 
 13.5   256B.0621, subdivisions 2, 3, 5 to 7, 
 13.6   9, and 10) will be delayed until July 
 13.7   1, 2005. 
 13.8   [COMMON SERVICE MENU.] Implementation 
 13.9   of the common service menu option 
 13.10  within the home- and community-based 
 13.11  waivers, pursuant to Laws 2001, First 
 13.12  Special Session chapter 9, article 3, 
 13.13  section 63 (Minnesota Statutes, section 
 13.14  256B.49, subdivision 16) will be 
 13.15  delayed until July 1, 2005. 
 13.16  Subd. 12.  Medical Assistance Long-term
 13.17  Care Facilities Grants
 13.18  General                                              7,659,000
 13.19  [ICF/MR SPECIAL RATE PROVISIONS FOR 
 13.20  OCCUPANCY.] Notwithstanding Minnesota 
 13.21  Statutes, section 256B.5013, 
 13.22  subdivision 4, the commissioner shall 
 13.23  suspend new authorizations of rate 
 13.24  adjustments to ICF/MR facilities with 
 13.25  seven or more beds for the purposes of 
 13.26  addressing occupancy.  This suspension 
 13.27  shall take effect as of April 1, 2003, 
 13.28  and shall sunset on July 1, 2003.  
 13.29  Notwithstanding Minnesota Statutes, 
 13.30  section 256B.5013, subdivision 4, the 
 13.31  commissioner, for the period April 1, 
 13.32  2003, through June 30, 2003, shall 
 13.33  adjust the total payment rate for up to 
 13.34  30 days for the remaining recipients in 
 13.35  facilities with six or fewer beds in 
 13.36  which the monthly occupancy rate of 
 13.37  licensed beds is 75 percent or higher.  
 13.38  Subd. 13.  Community Support Grants 
 13.39  General                                                (250,000)
 13.40  [PUBLIC GUARDIANSHIP GRANTS.] The 
 13.41  fiscal year 2003 appropriation for 
 13.42  public guardianship grants is reduced 
 13.43  by $250,000.  This is a onetime 
 13.44  reduction and does not affect base 
 13.45  funding for the program. 
 13.46  Subd. 14.  Alternative Care Grants 
 13.47  General                                              (1,700,000)
 13.48  [ALTERNATIVE CARE TARGETED FUNDS 
 13.49  REDUCTION.] The commissioner shall 
 13.50  adjust the allocation of targeted 
 13.51  alternative care funds to reduce net 
 13.52  general fund expenditures by $1,000,000 
 13.53  in fiscal year 2003.  The reduction 
 13.54  shall be achieved by delaying 
 13.55  implementation of common service menu 
 13.56  provisions and by working with counties 
 13.57  to create efficiencies, including 
 13.58  moving medical assistance eligible 
 13.59  persons from alternative care to the 
 13.60  elderly waiver more quickly. 
 14.1   Subd. 15.  Chemical Dependency
 14.2   Nonentitlement Grants 
 14.3   General                                                (268,000)
 14.4   [CHEMICAL DEPENDENCY NONENTITLEMENT 
 14.5   GRANTS.] The fiscal year 2003 
 14.6   appropriation for chemical health 
 14.7   nonentitlement grants shall be reduced 
 14.8   by $268,000.  This reduction affects 
 14.9   only the chemical use assessment of 
 14.10  minors authorized under Minnesota 
 14.11  Statutes, section 260B.157, subdivision 
 14.12  1, and the statewide detoxification 
 14.13  transportation program authorized under 
 14.14  Minnesota Statutes, section 254A.17, 
 14.15  subdivision 3. 
 14.16  Subd. 16.  Minnesota Family      
 14.17  Investment Program                                     (860,000)
 14.18  [MFIP EMPLOYMENT AND TRAINING PROGRAM.] 
 14.19  The fiscal year 2003 appropriation for 
 14.20  MFIP employment and training shall be 
 14.21  reduced by $103,000 to reflect the 
 14.22  sunset on the 24-month education 
 14.23  program. 
 14.24  [MFIP NONCITIZEN FOOD ASSISTANCE.] The 
 14.25  fiscal year 2003 appropriation for MFIP 
 14.26  food assistance program administration 
 14.27  is increased by $7,000. 
 14.28  [MFIP FOOD AND CASH ASSISTANCE.] The 
 14.29  fiscal year 2003 appropriation for MFIP 
 14.30  food and cash assistance serving 
 14.31  noncitizens is reduced by $763,000. 
 14.32  [EMERGENCY ASSISTANCE.] The fiscal year 
 14.33  2003 appropriation for emergency 
 14.34  assistance is reduced by $1,000. 
 14.35  [FEDERAL TANF EMERGENCY ASSISTANCE.] 
 14.36  The fiscal year 2003 federal TANF 
 14.37  appropriation for emergency assistance 
 14.38  is reduced by $128,000. 
 14.39  Subd. 17.  Work Grants 
 14.40  Federal TANF                                           (894,000)
 14.41  [SUPPORTIVE WORK GRANTS.] The fiscal 
 14.42  year 2003 federal TANF appropriation 
 14.43  for supportive work grants is reduced 
 14.44  by $894,000. 
 14.45  Subd. 18.  Economic Support Grants -
 14.46  Other Assistance 
 14.47  General                                                 (64,000)
 14.48  [FRAUD PREVENTION INVESTIGATION 
 14.49  GRANTS.] The fiscal year 2003 general 
 14.50  fund appropriation for fraud prevention 
 14.51  investigation grants is reduced by 
 14.52  $64,000. 
 14.53  Sec. 3.  COMMISSIONER OF HEALTH 
 14.54  Subdivision 1.  Total General Fund
 14.55  Appropriation Reductions                             (5,948,000)
 15.1                 Summary by Fund
 15.2   General                            (5,948,000)
 15.3   Transfers from
 15.4   Other Funds                        (4,000,000)
 15.5   $500,000 of the appropriation reduction 
 15.6   is from long-term care quality 
 15.7   demonstration grants authorized in Laws 
 15.8   2001, First Special Session chapter 9, 
 15.9   article 17, section 3. 
 15.10  $500,000 of the appropriation reduction 
 15.11  is from long-term care transition 
 15.12  planning grants authorized in Laws 
 15.13  2001, First Special Session chapter 9, 
 15.14  article 17, section 3. 
 15.15  $3,557,000 of the appropriation 
 15.16  reduction is from WIC grants 
 15.17  administration authorized in Laws 2001, 
 15.18  First Special Session chapter 9, 
 15.19  article 17, section 3. 
 15.20  [HEALTH DISPARITIES; IMMUNIZATIONS.] 
 15.21  The fiscal year 2003 appropriation for 
 15.22  grants under Minnesota Statutes, 
 15.23  section 145.928, subdivision 7, to 
 15.24  reduce health disparities in infant 
 15.25  mortality and immunization rates, is 
 15.26  reduced by $314,000.  This is a onetime 
 15.27  reduction and does not affect base 
 15.28  funding.  
 15.29  [HEALTH DISPARITIES; GRANTS.] The 
 15.30  fiscal year 2003 appropriation for 
 15.31  grants under Minnesota Statutes, 
 15.32  section 145.928, subdivision 8, to 
 15.33  reduce health disparities in certain 
 15.34  priority areas, is reduced by 
 15.35  $108,000.  This is a onetime reduction 
 15.36  and does not affect base funding. 
 15.37  [LEAD GRANTS.] The fiscal year 2003 
 15.38  appropriation for grants under 
 15.39  Minnesota Statutes, section 144.9507, 
 15.40  subdivision 3, to meet relocation 
 15.41  requirements during lead-hazard 
 15.42  reduction work, is reduced by $25,000.  
 15.43  This is a onetime reduction and does 
 15.44  not affect base funding. 
 15.45  [FAMILY PLANNING GRANTS.] The fiscal 
 15.46  year 2003 appropriation for family 
 15.47  planning grants under Minnesota 
 15.48  Statutes, section 145.925, is reduced 
 15.49  by $56,000.  This is a onetime 
 15.50  reduction and does not affect base 
 15.51  funding. 
 15.52  [TANF WIC CLIENT SERVICES ALLOWANCE.] 
 15.53  Of the TANF funds appropriated to the 
 15.54  commissioner of health for the home 
 15.55  visiting program in Laws 2001, First 
 15.56  Special Session chapter 9, article 17, 
 15.57  section 3, subdivision 2, and Laws 
 15.58  2000, chapter 488, article 8, section 
 15.59  2, subdivision 6, clause (3), and 
 15.60  allocated to community health boards 
 16.1   and tribal governments under Minnesota 
 16.2   Statutes, section 145A.17, up to 
 16.3   $3,500,000 may be spent for WIC client 
 16.4   services under Minnesota Statutes, 
 16.5   section 145.894, clause (c).  The 
 16.6   commissioner of health shall determine 
 16.7   a method for apportioning this 
 16.8   allowance between family home visiting 
 16.9   and WIC client services within the 
 16.10  allocations provided to the community 
 16.11  health boards and tribal governments 
 16.12  for the remainder of fiscal year 2003. 
 16.13  $4,000,000 of the appropriation for 
 16.14  tobacco use and prevention activities 
 16.15  under Minnesota Statutes, section 
 16.16  144.395, subdivision 2, is transferred 
 16.17  to the commissioner of finance for 
 16.18  cancellation to the general fund. 
 16.19  Sec. 4.  EMERGENCY MEDICAL SERVICES BOARD               (45,000)
 16.20  Sec. 5.  COUNCIL ON DISABILITY                          (29,000) 
 16.21  Sec. 6.  OMBUDSMAN FOR MENTAL HEALTH
 16.22  AND MENTAL RETARDATION                                  (73,000)
 16.23  [CANCELLATION.] $14,500 of the amount 
 16.24  for crime victims oversight is canceled 
 16.25  to the general fund. 
 16.26  Sec. 7.  OMBUDSMAN FOR FAMILIES                          (9,000)
 16.27  Sec. 8.  VETERANS HOMES BOARD                          (124,000)
 16.28  Sec. 9.  CHILDREN, FAMILIES, AND LEARNING 
 16.29  General                                                (680,000)
 16.30  [CHILD CARE DEVELOPMENT GRANTS.] The 
 16.31  fiscal year 2003 general fund 
 16.32  appropriation for child care 
 16.33  development grants is reduced by 
 16.34  $25,000. 
 16.35  [BASIC SLIDING FEE CHILD CARE.] The 
 16.36  fiscal year 2003 general fund 
 16.37  appropriation for basic sliding fee 
 16.38  child care is reduced by $602,000. 
 16.39  [MFIP CHILD CARE.] The fiscal year 2003 
 16.40  general fund appropriation for MFIP 
 16.41  child care is reduced by $53,000. 
 16.42     Sec. 10.  Minnesota Statutes 2002, section 119B.011, is 
 16.43  amended by adding a subdivision to read: 
 16.44     Subd. 23.  [FEDERAL POVERTY GUIDELINES.] "Federal poverty 
 16.45  guidelines" means the annual poverty guidelines for a family of 
 16.46  four, adjusted for family size, published annually by the United 
 16.47  States Department of Health and Human Services in the Federal 
 16.48  Register. 
 16.49     Sec. 11.  Minnesota Statutes 2002, section 119B.09, 
 16.50  subdivision 1, is amended to read: 
 17.1      Subdivision 1.  [GENERAL ELIGIBILITY REQUIREMENTS FOR ALL 
 17.2   APPLICANTS FOR CHILD CARE ASSISTANCE.] (a) Child care services 
 17.3   must be available to families who need child care to find or 
 17.4   keep employment or to obtain the training or education necessary 
 17.5   to find employment and who: 
 17.6      (1) meet the requirements of section 119B.05; receive MFIP 
 17.7   assistance; and are participating in employment and training 
 17.8   services under chapter 256J or 256K; 
 17.9      (2) have household income below the eligibility levels for 
 17.10  MFIP; or 
 17.11     (3) have household income within a range established by the 
 17.12  commissioner no greater than 250 percent of the federal poverty 
 17.13  guidelines, adjusted for family size. 
 17.14     (b) Child care services must be made available as in-kind 
 17.15  services.  
 17.16     (c) All applicants for child care assistance and families 
 17.17  currently receiving child care assistance must be assisted and 
 17.18  required to cooperate in establishment of paternity and 
 17.19  enforcement of child support obligations for all children in the 
 17.20  family as a condition of program eligibility.  For purposes of 
 17.21  this section, a family is considered to meet the requirement for 
 17.22  cooperation when the family complies with the requirements of 
 17.23  section 256.741. 
 17.24     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 17.25     Sec. 12.  Minnesota Statutes 2002, section 119B.09, 
 17.26  subdivision 2, is amended to read: 
 17.27     Subd. 2.  [SLIDING FEE.] Child care services to 
 17.28  families with incomes in the commissioner's established range 
 17.29  must be made available on a sliding fee basis.  The upper limit 
 17.30  of the range must be neither less than 70 percent nor more than 
 17.31  90 percent of the state median income for a family of four, 
 17.32  adjusted for family size. 
 17.33     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 17.34     Sec. 13.  Minnesota Statutes 2002, section 119B.12, 
 17.35  subdivision 2, is amended to read: 
 17.36     Subd. 2.  [PARENT FEE.] A family's monthly parent fee must 
 18.1   be a fixed percentage of its annual gross income.  Parent fees 
 18.2   must apply to families eligible for child care assistance under 
 18.3   sections 119B.03 and 119B.05.  Income must be as defined in 
 18.4   section 119B.011, subdivision 15.  The fixed percent is based on 
 18.5   the relationship of the family's annual gross income to 100 250 
 18.6   percent of state median income the federal poverty guidelines.  
 18.7   Beginning January 1, 1998, parent fees must begin at 75 percent 
 18.8   of the poverty level.  The minimum parent fees for families 
 18.9   between 75 percent and 100 percent of poverty level must 
 18.10  be $5 $10 per month.  Parent fees must be established in rule 
 18.11  and must provide for graduated movement to full payment. 
 18.12     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 18.13     Sec. 14.  Minnesota Statutes 2002, section 252.27, 
 18.14  subdivision 2a, is amended to read: 
 18.15     Subd. 2a.  [CONTRIBUTION AMOUNT.] (a) The natural or 
 18.16  adoptive parents of a minor child, including a child determined 
 18.17  eligible for medical assistance without consideration of 
 18.18  parental income, must contribute monthly to the cost of 
 18.19  services, unless the child is married or has been married, 
 18.20  parental rights have been terminated, or the child's adoption is 
 18.21  subsidized according to section 259.67 or through title IV-E of 
 18.22  the Social Security Act. 
 18.23     (b) The parental contribution shall be the greater of a 
 18.24  minimum monthly fee of $25 for households with adjusted gross 
 18.25  income of $30,000 and over, or an amount to be computed by 
 18.26  applying to the adjusted gross income of the natural or adoptive 
 18.27  parents that exceeds 150 percent of the federal poverty 
 18.28  guidelines for the applicable household size, the following 
 18.29  schedule of rates: 
 18.30     (1) on the amount of adjusted gross income over 150 percent 
 18.31  of poverty, but not over $50,000, ten percent; 
 18.32     (2) on the amount of adjusted gross income over 150 percent 
 18.33  of poverty and over $50,000 but not over $60,000, 12 percent; 
 18.34     (3) on the amount of adjusted gross income over 150 percent 
 18.35  of poverty, and over $60,000 but not over $75,000, 14 percent; 
 18.36  and 
 19.1      (4) on all adjusted gross income amounts over 150 percent 
 19.2   of poverty, and over $75,000, 15 percent. 
 19.3      If the child lives with the parent, the parental 
 19.4   contribution is reduced by $200, except that the parent must pay 
 19.5   the minimum monthly $25 fee under this paragraph.  If the child 
 19.6   resides in an institution specified in section 256B.35, the 
 19.7   parent is responsible for the personal needs allowance specified 
 19.8   under that section in addition to the parental contribution 
 19.9   determined under this section.  The parental contribution is 
 19.10  reduced by any amount required to be paid directly to the child 
 19.11  pursuant to a court order, but only if actually paid. 
 19.12     (c) The household size to be used in determining the amount 
 19.13  of contribution under paragraph (b) includes natural and 
 19.14  adoptive parents and their dependents under age 21, including 
 19.15  the child receiving services.  Adjustments in the contribution 
 19.16  amount due to annual changes in the federal poverty guidelines 
 19.17  shall be implemented on the first day of July following 
 19.18  publication of the changes. 
 19.19     (d) For purposes of paragraph (b), "income" means the 
 19.20  adjusted gross income of the natural or adoptive parents 
 19.21  determined according to the previous year's federal tax form. 
 19.22     (e) The contribution shall be explained in writing to the 
 19.23  parents at the time eligibility for services is being 
 19.24  determined.  The contribution shall be made on a monthly basis 
 19.25  effective with the first month in which the child receives 
 19.26  services.  Annually upon redetermination or at termination of 
 19.27  eligibility, if the contribution exceeded the cost of services 
 19.28  provided, the local agency or the state shall reimburse that 
 19.29  excess amount to the parents, either by direct reimbursement if 
 19.30  the parent is no longer required to pay a contribution, or by a 
 19.31  reduction in or waiver of parental fees until the excess amount 
 19.32  is exhausted. 
 19.33     (f) The monthly contribution amount must be reviewed at 
 19.34  least every 12 months; when there is a change in household size; 
 19.35  and when there is a loss of or gain in income from one month to 
 19.36  another in excess of ten percent.  The local agency shall mail a 
 20.1   written notice 30 days in advance of the effective date of a 
 20.2   change in the contribution amount.  A decrease in the 
 20.3   contribution amount is effective in the month that the parent 
 20.4   verifies a reduction in income or change in household size. 
 20.5      (g) Parents of a minor child who do not live with each 
 20.6   other shall each pay the contribution required under paragraph 
 20.7   (a), except that a court-ordered child support payment actually 
 20.8   paid on behalf of the child receiving services shall be deducted 
 20.9   from the contribution of the parent making the payment. 
 20.10     (h) The contribution under paragraph (b) shall be increased 
 20.11  by an additional five percent if the local agency determines 
 20.12  that insurance coverage is available but not obtained for the 
 20.13  child.  For purposes of this section, "available" means the 
 20.14  insurance is a benefit of employment for a family member at an 
 20.15  annual cost of no more than five percent of the family's annual 
 20.16  income.  For purposes of this section, "insurance" means health 
 20.17  and accident insurance coverage, enrollment in a nonprofit 
 20.18  health service plan, health maintenance organization, 
 20.19  self-insured plan, or preferred provider organization. 
 20.20     Parents who have more than one child receiving services 
 20.21  shall not be required to pay more than the amount for the child 
 20.22  with the highest expenditures.  There shall be no resource 
 20.23  contribution from the parents.  The parent shall not be required 
 20.24  to pay a contribution in excess of the cost of the services 
 20.25  provided to the child, not counting payments made to school 
 20.26  districts for education-related services.  Notice of an increase 
 20.27  in fee payment must be given at least 30 days before the 
 20.28  increased fee is due.  
 20.29     (i) The contribution under paragraph (b) shall be reduced 
 20.30  by $300 per fiscal year if, in the 12 months prior to July 1: 
 20.31     (1) the parent applied for insurance for the child; 
 20.32     (2) the insurer denied insurance; 
 20.33     (3) the parents submitted a complaint or appeal, in writing 
 20.34  to the insurer, submitted a complaint or appeal, in writing, to 
 20.35  the commissioner of health or the commissioner of commerce, or 
 20.36  litigated the complaint or appeal; and 
 21.1      (4) as a result of the dispute, the insurer reversed its 
 21.2   decision and granted insurance. 
 21.3      For purposes of this section, "insurance" has the meaning 
 21.4   given in paragraph (h). 
 21.5      A parent who has requested a reduction in the contribution 
 21.6   amount under this paragraph shall submit proof in the form and 
 21.7   manner prescribed by the commissioner or county agency, 
 21.8   including, but not limited to, the insurer's denial of 
 21.9   insurance, the written letter or complaint of the parents, court 
 21.10  documents, and the written response of the insurer approving 
 21.11  insurance.  The determinations of the commissioner or county 
 21.12  agency under this paragraph are not rules subject to chapter 14. 
 21.13     (j) The contribution calculated under paragraph (b) shall 
 21.14  be increased by five percent.  
 21.15     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 21.16     Sec. 15.  Minnesota Statutes 2002, section 256.9657, 
 21.17  subdivision 1, is amended to read: 
 21.18     Subdivision 1.  [NURSING HOME LICENSE SURCHARGE.] (a) 
 21.19  Effective July 1, 1993, each non-state-operated nursing home 
 21.20  licensed under chapter 144A shall pay to the commissioner an 
 21.21  annual surcharge according to the schedule in subdivision 4.  
 21.22  The surcharge shall be calculated as $620 per licensed bed.  If 
 21.23  the number of licensed beds is reduced, the surcharge shall be 
 21.24  based on the number of remaining licensed beds the second month 
 21.25  following the receipt of timely notice by the commissioner of 
 21.26  human services that beds have been delicensed.  The nursing home 
 21.27  must notify the commissioner of health in writing when beds are 
 21.28  delicensed.  The commissioner of health must notify the 
 21.29  commissioner of human services within ten working days after 
 21.30  receiving written notification.  If the notification is received 
 21.31  by the commissioner of human services by the 15th of the month, 
 21.32  the invoice for the second following month must be reduced to 
 21.33  recognize the delicensing of beds.  Beds on layaway status 
 21.34  continue to be subject to the surcharge.  The commissioner of 
 21.35  human services must acknowledge a medical care surcharge appeal 
 21.36  within 30 days of receipt of the written appeal from the 
 22.1   provider. 
 22.2      (b) Effective July 1, 1994, the surcharge in paragraph (a) 
 22.3   shall be increased to $625. 
 22.4      (c) Effective August 15, 2002, the surcharge under 
 22.5   paragraph (b) shall be increased to $990. 
 22.6      (d) Effective April 15, 2003, the surcharge under paragraph 
 22.7   (c) shall be increased to $2,741. 
 22.8      (e) Between April 1, 2002, and August 15, 2003 2004, a 
 22.9   facility governed by this subdivision may elect to assume full 
 22.10  participation in the medical assistance program by agreeing to 
 22.11  comply with all of the requirements of the medical assistance 
 22.12  program, including the rate equalization law in section 256B.48, 
 22.13  subdivision 1, paragraph (a), and all other requirements 
 22.14  established in law or rule, and to begin intake of new medical 
 22.15  assistance recipients.  Rates will be determined under Minnesota 
 22.16  Rules, parts 9549.0010 to 9549.0080.  Notwithstanding section 
 22.17  256B.431, subdivision 27, paragraph (i), rate calculations will 
 22.18  be subject to limits as prescribed in rule and law.  Other than 
 22.19  the adjustments in sections 256B.431, subdivisions 30 and 32; 
 22.20  256B.437, subdivision 3, paragraph (b), Minnesota Rules, part 
 22.21  9549.0057, and any other applicable legislation enacted prior to 
 22.22  the finalization of rates, facilities assuming full 
 22.23  participation in medical assistance under this paragraph are not 
 22.24  eligible for any rate adjustments until the July 1 following 
 22.25  their settle-up period. 
 22.26     <b>[EFFECTIVE DATE.]</b> This section is effective February 28, 
 22.27  2003. 
 22.28     Sec. 16.  Minnesota Statutes 2002, section 256.969, 
 22.29  subdivision 3a, is amended to read: 
 22.30     Subd. 3a.  [PAYMENTS.] (a) Acute care hospital billings 
 22.31  under the medical assistance program must not be submitted until 
 22.32  the recipient is discharged.  However, the commissioner shall 
 22.33  establish monthly interim payments for inpatient hospitals that 
 22.34  have individual patient lengths of stay over 30 days regardless 
 22.35  of diagnostic category.  Except as provided in section 256.9693, 
 22.36  medical assistance reimbursement for treatment of mental illness 
 23.1   shall be reimbursed based on diagnostic classifications.  
 23.2   Individual hospital payments established under this section and 
 23.3   sections 256.9685, 256.9686, and 256.9695, in addition to third 
 23.4   party and recipient liability, for discharges occurring during 
 23.5   the rate year shall not exceed, in aggregate, the charges for 
 23.6   the medical assistance covered inpatient services paid for the 
 23.7   same period of time to the hospital.  This payment limitation 
 23.8   shall be calculated separately for medical assistance and 
 23.9   general assistance medical care services.  The limitation on 
 23.10  general assistance medical care shall be effective for 
 23.11  admissions occurring on or after July 1, 1991.  Services that 
 23.12  have rates established under subdivision 11 or 12, must be 
 23.13  limited separately from other services.  After consulting with 
 23.14  the affected hospitals, the commissioner may consider related 
 23.15  hospitals one entity and may merge the payment rates while 
 23.16  maintaining separate provider numbers.  The operating and 
 23.17  property base rates per admission or per day shall be derived 
 23.18  from the best Medicare and claims data available when rates are 
 23.19  established.  The commissioner shall determine the best Medicare 
 23.20  and claims data, taking into consideration variables of recency 
 23.21  of the data, audit disposition, settlement status, and the 
 23.22  ability to set rates in a timely manner.  The commissioner shall 
 23.23  notify hospitals of payment rates by December 1 of the year 
 23.24  preceding the rate year.  The rate setting data must reflect the 
 23.25  admissions data used to establish relative values.  Base year 
 23.26  changes from 1981 to the base year established for the rate year 
 23.27  beginning January 1, 1991, and for subsequent rate years, shall 
 23.28  not be limited to the limits ending June 30, 1987, on the 
 23.29  maximum rate of increase under subdivision 1.  The commissioner 
 23.30  may adjust base year cost, relative value, and case mix index 
 23.31  data to exclude the costs of services that have been 
 23.32  discontinued by the October 1 of the year preceding the rate 
 23.33  year or that are paid separately from inpatient services.  
 23.34  Inpatient stays that encompass portions of two or more rate 
 23.35  years shall have payments established based on payment rates in 
 23.36  effect at the time of admission unless the date of admission 
 24.1   preceded the rate year in effect by six months or more.  In this 
 24.2   case, operating payment rates for services rendered during the 
 24.3   rate year in effect and established based on the date of 
 24.4   admission shall be adjusted to the rate year in effect by the 
 24.5   hospital cost index. 
 24.6      (b) For fee-for-service admissions occurring on or after 
 24.7   July 1, 2002, the total payment, before third-party liability 
 24.8   and spenddown, made to hospitals for inpatient services is 
 24.9   reduced by .5 percent from the current statutory rates. 
 24.10     (c) For fee-for-service admissions occurring on or after 
 24.11  March 1, 2003, the total payment, before third-party liability 
 24.12  and spenddown, made to hospitals for inpatient services is 
 24.13  reduced five percent from the current statutory rates.  Mental 
 24.14  health services within diagnosis-related groups 424 to 432 and 
 24.15  facilities defined under subdivision 16 are excluded from this 
 24.16  paragraph. 
 24.17     Sec. 17.  Minnesota Statutes 2002, section 256B.056, 
 24.18  subdivision 1a, is amended to read: 
 24.19     Subd. 1a.  [INCOME AND ASSETS GENERALLY.] Unless 
 24.20  specifically required by state law or rule or federal law or 
 24.21  regulation, the methodologies used in counting income and assets 
 24.22  to determine eligibility for medical assistance for persons 
 24.23  whose eligibility category is based on blindness, disability, or 
 24.24  age of 65 or more years, the methodologies for the supplemental 
 24.25  security income program shall be used.  Increases in benefits 
 24.26  under title II of the Social Security Act shall not be counted 
 24.27  as income for purposes of this subdivision until July 1 of each 
 24.28  year.  Effective upon federal approval, for children eligible 
 24.29  under section 256B.055, subdivision 12, or for home and 
 24.30  community-based waiver services whose eligibility for medical 
 24.31  assistance is determined without regard to parental income, 
 24.32  child support payments, including any payments made by an 
 24.33  obligor in satisfaction of or in addition to a temporary or 
 24.34  permanent order for child support, and social security payments 
 24.35  are not counted as income.  For families and children, which 
 24.36  includes all other eligibility categories, the methodologies 
 25.1   under the state's AFDC plan in effect as of July 16, 1996, as 
 25.2   required by the Personal Responsibility and Work Opportunity 
 25.3   Reconciliation Act of 1996 (PRWORA), Public Law Number 104-193, 
 25.4   shall be used, except that effective July 1, 2002, the $90 and 
 25.5   $30 and one-third earned income disregards shall not apply and 
 25.6   the disregard specified in subdivision 1c shall apply.  For 
 25.7   these purposes, a "methodology" does not include an asset or 
 25.8   income standard, or accounting method, or method of determining 
 25.9   effective dates. 
 25.10     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 25.11     Sec. 18.  Minnesota Statutes 2002, section 256B.056, 
 25.12  subdivision 4, is amended to read: 
 25.13     Subd. 4.  [INCOME.] (a) To be eligible for medical 
 25.14  assistance, a person eligible under section 256B.055, 
 25.15  subdivisions 7, 7a, and 12, may have income up to 100 percent of 
 25.16  the federal poverty guidelines.  Effective January 1, 2000, and 
 25.17  each successive January, recipients of supplemental security 
 25.18  income may have an income up to the supplemental security income 
 25.19  standard in effect on that date.  
 25.20     (b) To be eligible for medical assistance, families and 
 25.21  children may have an income up to 133-1/3 percent of the AFDC 
 25.22  income standard in effect under the July 16, 1996, AFDC state 
 25.23  plan.  Effective July 1, 2000, the base AFDC standard in effect 
 25.24  on July 16, 1996, shall be increased by three percent.  
 25.25     (c) Effective July 1, 2002, to be eligible for medical 
 25.26  assistance, families and children may have an income up to 100 
 25.27  percent of the federal poverty guidelines for the family size.  
 25.28     (d) In computing income to determine eligibility of persons 
 25.29  under paragraphs (a) to (c) and (b) who are not residents of 
 25.30  long-term care facilities, the commissioner shall disregard 
 25.31  increases in income as required by Public Law Numbers Laws 
 25.32  94-566, section 503; 99-272; and 99-509.  Veterans aid and 
 25.33  attendance benefits and Veterans Administration unusual medical 
 25.34  expense payments are considered income to the recipient. 
 25.35     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 25.36     Sec. 19.  Minnesota Statutes 2002, section 256B.057, 
 26.1   subdivision 2, is amended to read: 
 26.2      Subd. 2.  [CHILDREN.] Except as specified in subdivision 
 26.3   1b, effective July 1, 2002, a child one through 18 five years of 
 26.4   age in a family whose countable income is no greater than 
 26.5   170 133 percent of the federal poverty guidelines for the same 
 26.6   family size, is eligible for medical assistance.  A child six 
 26.7   through 18 years of age, in a family whose countable income is 
 26.8   no greater than 100 percent of the federal poverty guidelines 
 26.9   for the same family size, is eligible for medical assistance. 
 26.10     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 26.11     Sec. 20.  Minnesota Statutes 2002, section 256B.06, 
 26.12  subdivision 4, is amended to read: 
 26.13     Subd. 4.  [CITIZENSHIP REQUIREMENTS.] (a) Eligibility for 
 26.14  medical assistance is limited to citizens of the United States, 
 26.15  qualified noncitizens as defined in this subdivision, and other 
 26.16  persons residing lawfully in the United States. 
 26.17     (b) "Qualified noncitizen" means a person who meets one of 
 26.18  the following immigration criteria: 
 26.19     (1) admitted for lawful permanent residence according to 
 26.20  United States Code, title 8; 
 26.21     (2) admitted to the United States as a refugee according to 
 26.22  United States Code, title 8, section 1157; 
 26.23     (3) granted asylum according to United States Code, title 
 26.24  8, section 1158; 
 26.25     (4) granted withholding of deportation according to United 
 26.26  States Code, title 8, section 1253(h); 
 26.27     (5) paroled for a period of at least one year according to 
 26.28  United States Code, title 8, section 1182(d)(5); 
 26.29     (6) granted conditional entrant status according to United 
 26.30  States Code, title 8, section 1153(a)(7); 
 26.31     (7) determined to be a battered noncitizen by the United 
 26.32  States Attorney General according to the Illegal Immigration 
 26.33  Reform and Immigrant Responsibility Act of 1996, title V of the 
 26.34  Omnibus Consolidated Appropriations Bill, Public Law Number 
 26.35  104-200; 
 26.36     (8) is a child of a noncitizen determined to be a battered 
 27.1   noncitizen by the United States Attorney General according to 
 27.2   the Illegal Immigration Reform and Immigrant Responsibility Act 
 27.3   of 1996, title V, of the Omnibus Consolidated Appropriations 
 27.4   Bill, Public Law Number 104-200; or 
 27.5      (9) determined to be a Cuban or Haitian entrant as defined 
 27.6   in section 501(e) of Public Law Number 96-422, the Refugee 
 27.7   Education Assistance Act of 1980; 
 27.8      (10) determined to be an Amerasian immigrant; 
 27.9      (11) determined to be an American Indian born outside of 
 27.10  the United States who is a member of a federally recognized 
 27.11  tribe; 
 27.12     (12) determined to be a Canadian with 50 percent or more 
 27.13  American Indian blood; 
 27.14     (13) is a noncitizen veteran of the United States Armed 
 27.15  Forces with an honorable discharge for a reason other than 
 27.16  noncitizen status, the person's spouse and unmarried minor 
 27.17  dependent children; or 
 27.18     (14) is a noncitizen on active duty in the United States 
 27.19  Armed Forces, other than for training, the person's spouse and 
 27.20  unmarried minor dependent children. 
 27.21     (c) All qualified noncitizens who were residing in the 
 27.22  United States before August 22, 1996, who otherwise meet the 
 27.23  eligibility requirements of chapter 256B, are eligible for 
 27.24  medical assistance with federal financial participation. 
 27.25     (d) All Qualified noncitizens described in paragraph (b), 
 27.26  clauses (1) and (5) through (8), who entered the United States 
 27.27  on or after August 22, 1996, and who otherwise meet the 
 27.28  eligibility requirements of chapter 256B, are eligible for 
 27.29  medical assistance with federal financial participation through 
 27.30  November 30, 1996 after five years from date of entry. 
 27.31     Beginning December 1, 1996, qualified noncitizens who 
 27.32  entered the United States on or after August 22, 1996, and who 
 27.33  otherwise meet the eligibility requirements of chapter 256B are 
 27.34  eligible for medical assistance with federal participation for 
 27.35  five years if they meet one of the following criteria: 
 27.36     (i) refugees admitted to the United States according to 
 28.1   United States Code, title 8, section 1157; 
 28.2      (ii) persons granted asylum according to United States 
 28.3   Code, title 8, section 1158; 
 28.4      (iii) persons granted withholding of deportation according 
 28.5   to United States Code, title 8, section 1253(h); 
 28.6      (iv) noncitizen veterans of the United States Armed Forces 
 28.7   with an honorable discharge for a reason other than noncitizen 
 28.8   status, their spouses and unmarried minor dependent children; or 
 28.9      (v) noncitizen persons on active duty in the United States 
 28.10  Armed Forces, other than for training, their spouses and 
 28.11  unmarried minor dependent children; 
 28.12     (vi) Amerasian immigrants; 
 28.13     (vii) Cuban or Haitian entrants as defined in section 
 28.14  501(e) of Public Law 96-422, the Refugee Education Assistance 
 28.15  Act of 1980; 
 28.16     (viii) American Indians born outside of the United States 
 28.17  who are members of federally recognized tribes; or 
 28.18     (ix) Canadians with 50 percent or more American Indian 
 28.19  blood. 
 28.20     Beginning December 1, 1996, qualified noncitizens who do 
 28.21  not meet one of the criteria in items (i) to (v) are eligible 
 28.22  for medical assistance without federal financial participation 
 28.23  as described in paragraph (j). 
 28.24     (e) Noncitizens who are not qualified noncitizens as 
 28.25  defined in paragraph (b), who are lawfully residing in the 
 28.26  United States and who otherwise meet the eligibility 
 28.27  requirements of chapter 256B, are eligible for medical 
 28.28  assistance under clauses (1) to (3).  These individuals must 
 28.29  cooperate with the Immigration and Naturalization Service to 
 28.30  pursue any applicable immigration status, including citizenship, 
 28.31  that would qualify them for medical assistance with federal 
 28.32  financial participation. 
 28.33     (1) Persons who were medical assistance recipients on 
 28.34  August 22, 1996, are eligible for medical assistance with 
 28.35  federal financial participation through December 31, 1996. 
 28.36     (2) Beginning January 1, 1997, persons described in clause 
 29.1   (1) are eligible for medical assistance without federal 
 29.2   financial participation as described in paragraph (j). 
 29.3      (3) Beginning December 1, 1996, persons residing in the 
 29.4   United States prior to August 22, 1996, who were not receiving 
 29.5   medical assistance and persons who arrived on or after August 
 29.6   22, 1996, are eligible for medical assistance without federal 
 29.7   financial participation as described in paragraph (j). 
 29.8      (f) Nonimmigrants who otherwise meet the eligibility 
 29.9   requirements of chapter 256B are eligible for the benefits as 
 29.10  provided in paragraphs (g) to (i).  For purposes of this 
 29.11  subdivision, a "nonimmigrant" is a person in one of the classes 
 29.12  listed in United States Code, title 8, section 1101(a)(15). 
 29.13     (g) (e) Payment shall also be made for care and services 
 29.14  that are furnished to noncitizens, regardless of immigration 
 29.15  status, who otherwise meet the eligibility requirements of 
 29.16  chapter 256B, if such care and services are necessary for the 
 29.17  treatment of an emergency medical condition, except for organ 
 29.18  transplants and related care and services and routine prenatal 
 29.19  care.  
 29.20     (h) (f) For purposes of this subdivision, the term 
 29.21  "emergency medical condition" means a medical condition that 
 29.22  meets the requirements of United States Code, title 42, section 
 29.23  1396b(v). 
 29.24     (i) Pregnant noncitizens who are undocumented or 
 29.25  nonimmigrants, who otherwise meet the eligibility requirements 
 29.26  of chapter 256B, are eligible for medical assistance payment 
 29.27  without federal financial participation for care and services 
 29.28  through the period of pregnancy, and 60 days postpartum, except 
 29.29  for labor and delivery.  
 29.30     (j) Qualified noncitizens as described in paragraph (d), 
 29.31  and all other noncitizens lawfully residing in the United States 
 29.32  as described in paragraph (e), who are ineligible for medical 
 29.33  assistance with federal financial participation and who 
 29.34  otherwise meet the eligibility requirements of chapter 256B and 
 29.35  of this paragraph, are eligible for medical assistance without 
 29.36  federal financial participation.  Qualified noncitizens as 
 30.1   described in paragraph (d) are only eligible for medical 
 30.2   assistance without federal financial participation for five 
 30.3   years from their date of entry into the United States.  
 30.4      (k) The commissioner shall submit to the legislature by 
 30.5   December 31, 1998, a report on the number of recipients and cost 
 30.6   of coverage of care and services made according to paragraphs 
 30.7   (i) and (j). 
 30.8      <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 30.9      Sec. 21.  Minnesota Statutes 2002, section 256B.06, 
 30.10  subdivision 5, is amended to read: 
 30.11     Subd. 5.  [DEEMING OF SPONSOR INCOME AND RESOURCES.] When 
 30.12  determining eligibility for any federal or state funded medical 
 30.13  assistance under this section, the income and resources of all 
 30.14  noncitizens shall be deemed to include their sponsors' income 
 30.15  and resources as required under the Personal Responsibility and 
 30.16  Work Opportunity Reconciliation Act of 1996, title IV, Public 
 30.17  Law Number 104-193, sections 421 and 422, and subsequently set 
 30.18  out in federal rules.  This section is effective May 1, 1997. 
 30.19     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 30.20     Sec. 22.  Minnesota Statutes 2002, section 256B.0625, 
 30.21  subdivision 13, is amended to read: 
 30.22     Subd. 13.  [DRUGS.] (a) Medical assistance covers drugs, 
 30.23  except for fertility drugs when specifically used to enhance 
 30.24  fertility, if prescribed by a licensed practitioner and 
 30.25  dispensed by a licensed pharmacist, by a physician enrolled in 
 30.26  the medical assistance program as a dispensing physician, or by 
 30.27  a physician or a nurse practitioner employed by or under 
 30.28  contract with a community health board as defined in section 
 30.29  145A.02, subdivision 5, for the purposes of communicable disease 
 30.30  control.  The commissioner, after receiving recommendations from 
 30.31  professional medical associations and professional pharmacist 
 30.32  associations, shall designate a formulary committee to advise 
 30.33  the commissioner on the names of drugs for which payment is 
 30.34  made, recommend a system for reimbursing providers on a set fee 
 30.35  or charge basis rather than the present system, and develop 
 30.36  methods encouraging use of generic drugs when they are less 
 31.1   expensive and equally effective as trademark drugs.  The 
 31.2   formulary committee shall consist of nine members, four of whom 
 31.3   shall be physicians who are not employed by the department of 
 31.4   human services, and a majority of whose practice is for persons 
 31.5   paying privately or through health insurance, three of whom 
 31.6   shall be pharmacists who are not employed by the department of 
 31.7   human services, and a majority of whose practice is for persons 
 31.8   paying privately or through health insurance, a consumer 
 31.9   representative, and a nursing home representative.  Committee 
 31.10  members shall serve three-year terms and shall serve without 
 31.11  compensation.  Members may be reappointed once.  
 31.12     (b) The commissioner shall establish a drug formulary.  Its 
 31.13  establishment and publication shall not be subject to the 
 31.14  requirements of the Administrative Procedure Act, but the 
 31.15  formulary committee shall review and comment on the formulary 
 31.16  contents.  
 31.17     The formulary shall not include:  
 31.18     (i) drugs or products for which there is no federal 
 31.19  funding; 
 31.20     (ii) over-the-counter drugs, except for antacids, 
 31.21  acetaminophen, family planning products, aspirin, insulin, 
 31.22  products for the treatment of lice, vitamins for adults with 
 31.23  documented vitamin deficiencies, vitamins for children under the 
 31.24  age of seven and pregnant or nursing women, and any other 
 31.25  over-the-counter drug identified by the commissioner, in 
 31.26  consultation with the drug formulary committee, as necessary, 
 31.27  appropriate, and cost-effective for the treatment of certain 
 31.28  specified chronic diseases, conditions or disorders, and this 
 31.29  determination shall not be subject to the requirements of 
 31.30  chapter 14; 
 31.31     (iii) anorectics, except that medically necessary 
 31.32  anorectics shall be covered for a recipient previously diagnosed 
 31.33  as having pickwickian syndrome and currently diagnosed as having 
 31.34  diabetes and being morbidly obese; 
 31.35     (iv) drugs for which medical value has not been 
 31.36  established; and 
 32.1      (v) drugs from manufacturers who have not signed a rebate 
 32.2   agreement with the Department of Health and Human Services 
 32.3   pursuant to section 1927 of title XIX of the Social Security Act.
 32.4      The commissioner shall publish conditions for prohibiting 
 32.5   payment for specific drugs after considering the formulary 
 32.6   committee's recommendations.  An honorarium of $100 per meeting 
 32.7   and reimbursement for mileage shall be paid to each committee 
 32.8   member in attendance.  
 32.9      (c) The basis for determining the amount of payment shall 
 32.10  be the lower of the actual acquisition costs of the drugs plus a 
 32.11  fixed dispensing fee; the maximum allowable cost set by the 
 32.12  federal government or by the commissioner plus the fixed 
 32.13  dispensing fee; or the usual and customary price charged to the 
 32.14  public.  The amount of payment basis must be reduced to reflect 
 32.15  all discount amounts applied to the charge by any 
 32.16  provider/insurer agreement or contract for submitted charges to 
 32.17  medical assistance programs.  The net submitted charge may not 
 32.18  be greater than the patient liability for the service.  The 
 32.19  pharmacy dispensing fee shall be $3.65, except that the 
 32.20  dispensing fee for intravenous solutions which must be 
 32.21  compounded by the pharmacist shall be $8 per bag, $14 per bag 
 32.22  for cancer chemotherapy products, and $30 per bag for total 
 32.23  parenteral nutritional products dispensed in one liter 
 32.24  quantities, or $44 per bag for total parenteral nutritional 
 32.25  products dispensed in quantities greater than one liter.  Actual 
 32.26  acquisition cost includes quantity and other special discounts 
 32.27  except time and cash discounts.  The actual acquisition cost of 
 32.28  a drug shall be estimated by the commissioner, at average 
 32.29  wholesale price minus nine percent, except that where a drug has 
 32.30  had its wholesale price reduced as a result of the actions of 
 32.31  the National Association of Medicaid Fraud Control Units, the 
 32.32  estimated actual acquisition cost shall be the reduced average 
 32.33  wholesale price, without the nine percent deduction.  For the 
 32.34  period March 1, 2003, through June 30, 2003, the commissioner 
 32.35  shall estimate the actual acquisition cost of a drug at average 
 32.36  wholesale price minus 12.6 percent, except that where a drug has 
 33.1   had its wholesale price reduced as a result of the actions of 
 33.2   the National Association of Medicaid Fraud Control Units, the 
 33.3   estimated actual acquisition cost shall be the reduced average 
 33.4   wholesale price, without the 12.6 percent deduction.  The 
 33.5   maximum allowable cost of a multisource drug may be set by the 
 33.6   commissioner and it shall be comparable to, but no higher than, 
 33.7   the maximum amount paid by other third-party payors in this 
 33.8   state who have maximum allowable cost programs.  The 
 33.9   commissioner shall set maximum allowable costs for multisource 
 33.10  drugs that are not on the federal upper limit list as described 
 33.11  in United States Code, title 42, chapter 7, section 1396r-8(e), 
 33.12  the Social Security Act, and Code of Federal Regulations, title 
 33.13  42, part 447, section 447.332.  Establishment of the amount of 
 33.14  payment for drugs shall not be subject to the requirements of 
 33.15  the Administrative Procedure Act.  An additional dispensing fee 
 33.16  of $.30 may be added to the dispensing fee paid to pharmacists 
 33.17  for legend drug prescriptions dispensed to residents of 
 33.18  long-term care facilities when a unit dose blister card system, 
 33.19  approved by the department, is used.  Under this type of 
 33.20  dispensing system, the pharmacist must dispense a 30-day supply 
 33.21  of drug.  The National Drug Code (NDC) from the drug container 
 33.22  used to fill the blister card must be identified on the claim to 
 33.23  the department.  The unit dose blister card containing the drug 
 33.24  must meet the packaging standards set forth in Minnesota Rules, 
 33.25  part 6800.2700, that govern the return of unused drugs to the 
 33.26  pharmacy for reuse.  The pharmacy provider will be required to 
 33.27  credit the department for the actual acquisition cost of all 
 33.28  unused drugs that are eligible for reuse.  Over-the-counter 
 33.29  medications must be dispensed in the manufacturer's unopened 
 33.30  package.  The commissioner may permit the drug clozapine to be 
 33.31  dispensed in a quantity that is less than a 30-day supply.  
 33.32  Whenever a generically equivalent product is available, payment 
 33.33  shall be on the basis of the actual acquisition cost of the 
 33.34  generic drug, unless the prescriber specifically indicates 
 33.35  "dispense as written - brand necessary" on the prescription as 
 33.36  required by section 151.21, subdivision 2. 
 34.1      (d) For purposes of this subdivision, "multisource drugs" 
 34.2   means covered outpatient drugs, excluding innovator multisource 
 34.3   drugs for which there are two or more drug products, which: 
 34.4      (1) are related as therapeutically equivalent under the 
 34.5   Food and Drug Administration's most recent publication of 
 34.6   "Approved Drug Products with Therapeutic Equivalence 
 34.7   Evaluations"; 
 34.8      (2) are pharmaceutically equivalent and bioequivalent as 
 34.9   determined by the Food and Drug Administration; and 
 34.10     (3) are sold or marketed in Minnesota. 
 34.11  "Innovator multisource drug" means a multisource drug that was 
 34.12  originally marketed under an original new drug application 
 34.13  approved by the Food and Drug Administration. 
 34.14     (e) The formulary committee shall review and recommend 
 34.15  drugs which require prior authorization.  The formulary 
 34.16  committee may recommend drugs for prior authorization directly 
 34.17  to the commissioner, as long as opportunity for public input is 
 34.18  provided.  Prior authorization may be requested by the 
 34.19  commissioner based on medical and clinical criteria and on cost 
 34.20  before certain drugs are eligible for payment.  Before a drug 
 34.21  may be considered for prior authorization at the request of the 
 34.22  commissioner: 
 34.23     (1) the drug formulary committee must develop criteria to 
 34.24  be used for identifying drugs; the development of these criteria 
 34.25  is not subject to the requirements of chapter 14, but the 
 34.26  formulary committee shall provide opportunity for public input 
 34.27  in developing criteria; 
 34.28     (2) the drug formulary committee must hold a public forum 
 34.29  and receive public comment for an additional 15 days; 
 34.30     (3) the drug formulary committee must consider data from 
 34.31  the state Medicaid program if such data is available; and 
 34.32     (4) the commissioner must provide information to the 
 34.33  formulary committee on the impact that placing the drug on prior 
 34.34  authorization will have on the quality of patient care and on 
 34.35  program costs, and information regarding whether the drug is 
 34.36  subject to clinical abuse or misuse.  
 35.1      Prior authorization may be required by the commissioner 
 35.2   before certain formulary drugs are eligible for payment.  If 
 35.3   prior authorization of a drug is required by the commissioner, 
 35.4   the commissioner must provide a 30-day notice period before 
 35.5   implementing the prior authorization.  If a prior authorization 
 35.6   request is denied by the department, the recipient may appeal 
 35.7   the denial in accordance with section 256.045.  If an appeal is 
 35.8   filed, the drug must be provided without prior authorization 
 35.9   until a decision is made on the appeal.  
 35.10     (f) (e) The basis for determining the amount of payment for 
 35.11  drugs administered in an outpatient setting shall be the lower 
 35.12  of the usual and customary cost submitted by the provider; the 
 35.13  average wholesale price minus five percent; or the maximum 
 35.14  allowable cost set by the federal government under United States 
 35.15  Code, title 42, chapter 7, section 1396r-8(e), and Code of 
 35.16  Federal Regulations, title 42, section 447.332, or by the 
 35.17  commissioner under paragraph (c). 
 35.18     (g) (f) Prior authorization shall not be required or 
 35.19  utilized for any antipsychotic drug prescribed for the treatment 
 35.20  of mental illness where there is no generically equivalent drug 
 35.21  available unless the commissioner determines that prior 
 35.22  authorization is necessary for patient safety.  This paragraph 
 35.23  applies to any supplemental drug rebate program established or 
 35.24  administered by the commissioner. 
 35.25     (h) (g) Prior authorization shall not be required or 
 35.26  utilized for any antihemophilic factor drug prescribed for the 
 35.27  treatment of hemophilia and blood disorders where there is no 
 35.28  generically equivalent drug available unless the commissioner 
 35.29  determines that prior authorization is necessary for patient 
 35.30  safety.  This paragraph applies to any supplemental drug rebate 
 35.31  program established or administered by the commissioner.  This 
 35.32  paragraph expires July 1, 2003. 
 35.33     <b>[EFFECTIVE DATE.]</b> This section is effective March 1, 2003. 
 35.34     Sec. 23.  Minnesota Statutes 2002, section 256B.0625, is 
 35.35  amended by adding a subdivision to read: 
 35.36     Subd. 13c.  [CO-PAYMENT FOR PRESCRIPTION DRUGS.] (a) Except 
 36.1   as provided under paragraph (d), the commissioner shall require 
 36.2   a recipient to make a co-payment of $1 for each noninnovator 
 36.3   multiple source drug and $3 for each single source drug or 
 36.4   innovator multiple source drug dispensed on or after March 1, 
 36.5   2003.  The total of co-payments for each enrollee shall not 
 36.6   exceed $20 per month.  The commissioner shall reduce 
 36.7   reimbursement rates to pharmacies for each prescription by the 
 36.8   amount of the co-payment.  A pharmacy shall not waive a 
 36.9   co-payment obligation and a pharmacy provider or supplier, 
 36.10  including a pharmaceutical manufacturer, or a representative, 
 36.11  employee, independent contractor, or agent of a pharmaceutical 
 36.12  manufacturer, shall not make a co-payment for a recipient.  A 
 36.13  parent or guardian shall be responsible for a co-payment imposed 
 36.14  on a dependent child under the age of 21. 
 36.15     (b) A pharmacy shall not refuse to provide a prescription 
 36.16  drug to a recipient if the recipient is unable to provide the 
 36.17  required co-payment.  This provision does not relieve a 
 36.18  recipient of an obligation to provide a co-payment and does not 
 36.19  prevent a pharmacy from attempting to collect a co-payment. 
 36.20     (c) If it is the routine business practice of a pharmacy to 
 36.21  refuse service to an individual with uncollected debt, the 
 36.22  pharmacy may include uncollected co-payments under this 
 36.23  practice.  A pharmacy must give advanced notice to a recipient 
 36.24  with uncollected debt before services can be denied. 
 36.25     (d) Co-payments shall not be required for prescription 
 36.26  drugs provided to children under age 18; pregnant women; 
 36.27  individuals residing for more than 30 days in a medical 
 36.28  institution who contribute all of their income to the cost of 
 36.29  care, except for a personal needs allowance; and categorically 
 36.30  needy individuals receiving services through a prepaid health 
 36.31  plan.  Co-payments shall not be required for prescriptions 
 36.32  provided as part of an emergency health care service or a family 
 36.33  planning service. 
 36.34     <b>[EFFECTIVE DATE.]</b> This section is effective March 1, 2003. 
 36.35     Sec. 24.  Minnesota Statutes 2002, section 256B.0635, 
 36.36  subdivision 1, is amended to read: 
 37.1      Subdivision 1.  [INCREASED EMPLOYMENT.] (a) Until June 30, 
 37.2   2002, medical assistance may be paid for persons who received 
 37.3   MFIP or medical assistance for families and children in at least 
 37.4   three of six months preceding the month in which the person 
 37.5   became ineligible for MFIP or medical assistance, if the 
 37.6   ineligibility was due to an increase in hours of employment or 
 37.7   employment income or due to the loss of an earned income 
 37.8   disregard.  In addition, to receive continued assistance under 
 37.9   this section, persons who received medical assistance for 
 37.10  families and children but did not receive MFIP must have had 
 37.11  income less than or equal to the assistance standard for their 
 37.12  family size under the state's AFDC plan in effect as of July 16, 
 37.13  1996, increased by three percent effective July 1, 2000, at the 
 37.14  time medical assistance eligibility began.  A person who is 
 37.15  eligible for extended medical assistance is entitled to six 
 37.16  months of assistance without reapplication, unless the 
 37.17  assistance unit ceases to include a dependent child.  For a 
 37.18  person under 21 years of age, medical assistance may not be 
 37.19  discontinued within the six-month period of extended eligibility 
 37.20  until it has been determined that the person is not otherwise 
 37.21  eligible for medical assistance.  Medical assistance may be 
 37.22  continued for an additional six months if the person meets all 
 37.23  requirements for the additional six months, according to title 
 37.24  XIX of the Social Security Act, as amended by section 303 of the 
 37.25  Family Support Act of 1988, Public Law Number 100-485. 
 37.26     (b) Beginning July 1, 2002 April 1, 2003, medical 
 37.27  assistance for families and children may be paid for persons who 
 37.28  were eligible under section 256B.055, subdivision 3a, and had 
 37.29  income less than or equal to the assistance standard for their 
 37.30  family size under the state's AFDC plan in effect as of July 16, 
 37.31  1996, increased by three percent effective July 1, 2000, in at 
 37.32  least three of six months preceding the month in which the 
 37.33  person became ineligible under that section if the ineligibility 
 37.34  was due to an increase in hours of employment or employment 
 37.35  income or due to the loss of an earned income disregard.  A 
 37.36  person who is eligible for extended medical assistance is 
 38.1   entitled to six months of assistance without reapplication, 
 38.2   unless the assistance unit ceases to include a dependent child, 
 38.3   except medical assistance may not be discontinued for that 
 38.4   dependent child under 21 years of age within the six-month 
 38.5   period of extended eligibility until it has been determined that 
 38.6   the person is not otherwise eligible for medical assistance.  
 38.7   Medical assistance may be continued for an additional six months 
 38.8   if the person meets all requirements for the additional six 
 38.9   months, according to title XIX of the Social Security Act, as 
 38.10  amended by section 303 of the Family Support Act of 1988, Public 
 38.11  Law Number 100-485. 
 38.12     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003, 
 38.13  and applies to persons whose eligibility for extended medical 
 38.14  assistance is established on or after that date. 
 38.15     Sec. 25.  Minnesota Statutes 2002, section 256B.0635, 
 38.16  subdivision 2, is amended to read: 
 38.17     Subd. 2.  [INCREASED CHILD OR SPOUSAL SUPPORT.] (a) Until 
 38.18  June 30, 2002, medical assistance may be paid for persons who 
 38.19  received MFIP or medical assistance for families and children in 
 38.20  at least three of the six months preceding the month in which 
 38.21  the person became ineligible for MFIP or medical assistance, if 
 38.22  the ineligibility was the result of the collection of child or 
 38.23  spousal support under part D of title IV of the Social Security 
 38.24  Act.  In addition, to receive continued assistance under this 
 38.25  section, persons who received medical assistance for families 
 38.26  and children but did not receive MFIP must have had income less 
 38.27  than or equal to the assistance standard for their family size 
 38.28  under the state's AFDC plan in effect as of July 16, 1996, 
 38.29  increased by three percent effective July 1, 2000, at the time 
 38.30  medical assistance eligibility began.  A person who is eligible 
 38.31  for extended medical assistance under this subdivision is 
 38.32  entitled to four months of assistance without reapplication, 
 38.33  unless the assistance unit ceases to include a dependent child, 
 38.34  except medical assistance may not be discontinued for that 
 38.35  dependent child under 21 years of age within the four-month 
 38.36  period of extended eligibility until it has been determined that 
 39.1   the person is not otherwise eligible for medical assistance. 
 39.2      (b) Beginning July 1, 2002 April 1, 2003, medical 
 39.3   assistance for families and children may be paid for persons who 
 39.4   were eligible under section 256B.055, subdivision 3a, and had 
 39.5   income less than or equal to the assistance standard for their 
 39.6   family size under the state's AFDC plan in effect as of July 16, 
 39.7   1996, increased by three percent effective July 1, 2000, in at 
 39.8   least three of the six months preceding the month in which the 
 39.9   person became ineligible under that section if the ineligibility 
 39.10  was the result of the collection of child or spousal support 
 39.11  under part D of title IV of the Social Security Act.  A person 
 39.12  who is eligible for extended medical assistance under this 
 39.13  subdivision is entitled to four months of assistance without 
 39.14  reapplication, unless the assistance unit ceases to include a 
 39.15  dependent child, except medical assistance may not be 
 39.16  discontinued for that dependent child under 21 years of age 
 39.17  within the four-month period of extended eligibility until it 
 39.18  has been determined that the person is not otherwise eligible 
 39.19  for medical assistance. 
 39.20     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003, 
 39.21  and applies to persons whose eligibility for extended medical 
 39.22  assistance is established on or after that date. 
 39.23     Sec. 26.  Minnesota Statutes 2002, section 256B.19, 
 39.24  subdivision 1d, is amended to read: 
 39.25     Subd. 1d.  [PORTION OF NONFEDERAL SHARE TO BE PAID BY 
 39.26  CERTAIN COUNTIES.] (a) In addition to the percentage 
 39.27  contribution paid by a county under subdivision 1, the 
 39.28  governmental units designated in this subdivision shall be 
 39.29  responsible for an additional portion of the nonfederal share of 
 39.30  medical assistance cost.  For purposes of this subdivision, 
 39.31  "designated governmental unit" means the counties of Becker, 
 39.32  Beltrami, Clearwater, Cook, Dodge, Hubbard, Itasca, Lake, 
 39.33  Pennington, Pipestone, Ramsey, St. Louis, Steele, Todd, 
 39.34  Traverse, and Wadena. 
 39.35     (b) Beginning in 1994, each of the governmental units 
 39.36  designated in this subdivision shall transfer before noon on May 
 40.1   31 to the state Medicaid agency an amount equal to the number of 
 40.2   licensed beds in any nursing home owned and operated by the 
 40.3   county on that date, with the county named as licensee, 
 40.4   multiplied by $5,723.  If two or more counties own and operate a 
 40.5   nursing home, the payment shall be prorated.  These sums shall 
 40.6   be part of the designated governmental unit's portion of the 
 40.7   nonfederal share of medical assistance costs. 
 40.8      (c) Beginning in 2002, in addition to any transfer under 
 40.9   paragraph (b), each of the governmental units designated in this 
 40.10  subdivision shall transfer before noon on May 31 to the state 
 40.11  Medicaid agency an amount equal to the number of licensed beds 
 40.12  in any nursing home owned and operated by the county on that 
 40.13  date, with the county named as licensee, multiplied by $10,784.  
 40.14  The provisions of paragraph (b) apply to transfers under this 
 40.15  paragraph. 
 40.16     (d) Beginning in 2003, in addition to any transfer under 
 40.17  paragraphs (b) and (c), each of the governmental units 
 40.18  designated in this subdivision shall transfer before noon on May 
 40.19  31 to the state Medicaid agency an amount equal to the number of 
 40.20  licensed beds in any nursing home owned and operated by the 
 40.21  county on that date, with the county named as licensee, 
 40.22  multiplied by $2,230.  The provisions of paragraph (b) apply to 
 40.23  transfers under this paragraph. 
 40.24     (e) The commissioner may reduce the intergovernmental 
 40.25  transfers under paragraph paragraphs (c) and (d) based on the 
 40.26  commissioner's determination of the payment rate in section 
 40.27  256B.431, subdivision 23, paragraphs (c) and, (d), and (e).  Any 
 40.28  adjustments must be made on a per-bed basis and must result in 
 40.29  an amount equivalent to the total amount resulting from the rate 
 40.30  adjustment in section 256B.431, subdivision 23, paragraphs (c) 
 40.31  and, (d), and (e). 
 40.32     <b>[EFFECTIVE DATE.]</b> This section is effective February 28, 
 40.33  2003. 
 40.34     Sec. 27.  Minnesota Statutes 2002, section 256B.195, 
 40.35  subdivision 4, is amended to read: 
 40.36     Subd. 4.  [ADJUSTMENTS PERMITTED.] (a) The commissioner may 
 41.1   adjust the intergovernmental transfers under subdivision 2 and 
 41.2   the payments under subdivision 3, and payments and transfers 
 41.3   under subdivision 5, based on the commissioner's determination 
 41.4   of Medicare upper payment limits, hospital-specific charge 
 41.5   limits, and hospital-specific limitations on disproportionate 
 41.6   share payments.  Any adjustments must be made on a proportional 
 41.7   basis.  If participation by a particular hospital under this 
 41.8   section is limited, the commissioner shall adjust the payments 
 41.9   that relate to that hospital under subdivisions 2, and 3, and 5 
 41.10  on a proportional basis in order to allow the hospital to 
 41.11  participate under this section to the fullest extent possible 
 41.12  and shall increase other payments under subdivisions 2, and 3, 
 41.13  and 5 to the extent allowable to maintain the overall level of 
 41.14  payments under this section.  The commissioner may make 
 41.15  adjustments under this subdivision only after consultation with 
 41.16  the counties and hospitals identified in subdivisions 2 and 3, 
 41.17  and, if subdivision 5 receives federal approval, with the 
 41.18  hospital and educational institution identified in subdivision 5.
 41.19     (b) The ratio of medical assistance payments specified in 
 41.20  subdivision 3 to the intergovernmental transfers specified in 
 41.21  subdivision 2 shall not be reduced except as provided under 
 41.22  paragraph (a). 
 41.23     (c) The increase in intergovernmental transfers and 
 41.24  payments that result from section 256.969, subdivision 3a, 
 41.25  paragraph (c), shall be paid to the general fund. 
 41.26     Sec. 28.  Minnesota Statutes 2002, section 256B.32, 
 41.27  subdivision 1, is amended to read: 
 41.28     Subdivision 1.  [FACILITY FEE PAYMENT.] (a) The 
 41.29  commissioner shall establish a facility fee payment mechanism 
 41.30  that will pay a facility fee to all enrolled outpatient 
 41.31  hospitals for each emergency room or outpatient clinic visit 
 41.32  provided on or after July 1, 1989.  This payment mechanism may 
 41.33  not result in an overall increase in outpatient payment rates.  
 41.34  This section does not apply to federally mandated maximum 
 41.35  payment limits, department approved program packages, or 
 41.36  services billed using a nonoutpatient hospital provider number. 
 42.1      (b) For fee-for-service services provided on or after July 
 42.2   1, 2002, the total payment, before third-party liability and 
 42.3   spenddown, made to hospitals for outpatient hospital facility 
 42.4   services is reduced by .5 percent from the current statutory 
 42.5   rates. 
 42.6      (c) For fee-for-service services provided on or after March 
 42.7   1, 2003, the total payment before third-party liability and 
 42.8   spenddown, made to hospitals for outpatient hospital facility 
 42.9   services is reduced five percent from the current statutory 
 42.10  rates.  Facilities defined under section 256.969, subdivision 
 42.11  16, are excluded from this paragraph. 
 42.12     Sec. 29.  Minnesota Statutes 2002, section 256B.431, 
 42.13  subdivision 23, is amended to read: 
 42.14     Subd. 23.  [COUNTY NURSING HOME PAYMENT ADJUSTMENTS.] (a) 
 42.15  Beginning in 1994, the commissioner shall pay a nursing home 
 42.16  payment adjustment on May 31 after noon to a county in which is 
 42.17  located a nursing home that, on that date, was county-owned and 
 42.18  operated, with the county named as licensee by the commissioner 
 42.19  of health, and had over 40 beds and medical assistance occupancy 
 42.20  in excess of 50 percent during the reporting year ending 
 42.21  September 30, 1991.  The adjustment shall be an amount equal to 
 42.22  $16 per calendar day multiplied by the number of beds licensed 
 42.23  in the facility as of September 30, 1991 on that date. 
 42.24     (b) Payments under paragraph (a) are excluded from medical 
 42.25  assistance per diem rate calculations.  These payments are 
 42.26  required notwithstanding any rule prohibiting medical assistance 
 42.27  payments from exceeding payments from private pay residents.  A 
 42.28  facility receiving a payment under paragraph (a) may not 
 42.29  increase charges to private pay residents by an amount 
 42.30  equivalent to the per diem amount payments under paragraph (a) 
 42.31  would equal if converted to a per diem. 
 42.32     (c) Beginning in 2002, in addition to any payment under 
 42.33  paragraph (a), the commissioner shall pay to a nursing facility 
 42.34  described in paragraph (a) an adjustment in an amount equal to 
 42.35  $29.55 per calendar day multiplied by the number of beds 
 42.36  licensed in the facility on that date.  The provisions of 
 43.1   paragraphs (a) and (b) apply to payments under this paragraph. 
 43.2      (d) Beginning in 2003, in addition to any payment under 
 43.3   paragraphs (a) and (c), the commissioner shall pay to a nursing 
 43.4   facility described in paragraph (a) an adjustment in an amount 
 43.5   equal to $6.11 per calendar day multiplied by the number of beds 
 43.6   licensed in the facility on that date.  The provisions of 
 43.7   paragraphs (a) and (b) apply to payments under this paragraph.  
 43.8      (e) The commissioner may reduce payments under 
 43.9   paragraph paragraphs (c) and (d) based on the commissioner's 
 43.10  determination of Medicare upper payment limits.  Any adjustments 
 43.11  must be proportional to adjustments made under section 256B.19, 
 43.12  subdivision 1d, paragraph (d) (e). 
 43.13     <b>[EFFECTIVE DATE.]</b> This section is effective February 28, 
 43.14  2003. 
 43.15     Sec. 30.  Minnesota Statutes 2002, section 256B.431, is 
 43.16  amended by adding a subdivision to read: 
 43.17     Subd. 38.  [NURSING HOME RATE INCREASES EFFECTIVE IN FISCAL 
 43.18  YEAR 2003.] Effective the first day of the month after notice is 
 43.19  published in the State Register, the commissioner shall provide 
 43.20  to each nursing home reimbursed under this section or section 
 43.21  256B.434, an increase in each case mix payment rate equal to the 
 43.22  increase in the per-bed surcharge paid under section 256.9657, 
 43.23  subdivision 1, paragraph (d), divided by 365 and further divided 
 43.24  by .80.  The increase shall not be subject to any annual 
 43.25  percentage increase.  The 30-day advance notice requirement in 
 43.26  section 256B.47, subdivision 2, shall not apply to rate 
 43.27  increases resulting from this section. 
 43.28     <b>[EFFECTIVE DATE.]</b> This section is effective February 28, 
 43.29  2003. 
 43.30     Sec. 31.  Minnesota Statutes 2002, section 256B.75, is 
 43.31  amended to read: 
 43.32     256B.75 [HOSPITAL OUTPATIENT REIMBURSEMENT.] 
 43.33     (a) For outpatient hospital facility fee payments for 
 43.34  services rendered on or after October 1, 1992, the commissioner 
 43.35  of human services shall pay the lower of (1) submitted charge, 
 43.36  or (2) 32 percent above the rate in effect on June 30, 1992, 
 44.1   except for those services for which there is a federal maximum 
 44.2   allowable payment.  Effective for services rendered on or after 
 44.3   January 1, 2000, payment rates for nonsurgical outpatient 
 44.4   hospital facility fees and emergency room facility fees shall be 
 44.5   increased by eight percent over the rates in effect on December 
 44.6   31, 1999, except for those services for which there is a federal 
 44.7   maximum allowable payment.  Services for which there is a 
 44.8   federal maximum allowable payment shall be paid at the lower of 
 44.9   (1) submitted charge, or (2) the federal maximum allowable 
 44.10  payment.  Total aggregate payment for outpatient hospital 
 44.11  facility fee services shall not exceed the Medicare upper 
 44.12  limit.  If it is determined that a provision of this section 
 44.13  conflicts with existing or future requirements of the United 
 44.14  States government with respect to federal financial 
 44.15  participation in medical assistance, the federal requirements 
 44.16  prevail.  The commissioner may, in the aggregate, prospectively 
 44.17  reduce payment rates to avoid reduced federal financial 
 44.18  participation resulting from rates that are in excess of the 
 44.19  Medicare upper limitations. 
 44.20     (b) Notwithstanding paragraph (a), payment for outpatient, 
 44.21  emergency, and ambulatory surgery hospital facility fee services 
 44.22  for critical access hospitals designated under section 144.1483, 
 44.23  clause (11), shall be paid on a cost-based payment system that 
 44.24  is based on the cost-finding methods and allowable costs of the 
 44.25  Medicare program. 
 44.26     (c) Effective for services provided on or after July 1, 
 44.27  2003, rates that are based on the Medicare outpatient 
 44.28  prospective payment system shall be replaced by a budget neutral 
 44.29  prospective payment system that is derived using medical 
 44.30  assistance data.  The commissioner shall provide a proposal to 
 44.31  the 2003 legislature to define and implement this provision. 
 44.32     (d) For fee-for-service services provided on or after July 
 44.33  1, 2002, the total payment, before third-party liability and 
 44.34  spenddown, made to hospitals for outpatient hospital facility 
 44.35  services is reduced by .5 percent from the current statutory 
 44.36  rate. 
 45.1      (e) For fee-for-service services provided on or after March 
 45.2   1, 2003, the total payment before third-party liability and 
 45.3   spenddown, made to hospitals for outpatient hospital facility 
 45.4   services is reduced five percent from the current statutory 
 45.5   rates.  Facilities defined under section 256.969, subdivision 
 45.6   16, are excluded from this paragraph. 
 45.7      Sec. 32.  Minnesota Statutes 2002, section 256J.08, 
 45.8   subdivision 85, is amended to read: 
 45.9      Subd. 85.  [TRANSITIONAL STANDARD.] "Transitional standard" 
 45.10  means the basic standard for a family with no other income or a 
 45.11  nonworking family and is a combination of the cash assistance 
 45.12  needs and food assistance needs for a family of that size.  This 
 45.13  standard shall represent only the cash portion of MFIP when an 
 45.14  assistance unit member is ineligible for federal food benefits 
 45.15  due to citizenship status. 
 45.16     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 45.17     Sec. 33.  Minnesota Statutes 2002, section 256J.11, 
 45.18  subdivision 1, is amended to read: 
 45.19     Subdivision 1.  [GENERAL CITIZENSHIP REQUIREMENTS.] (a) To 
 45.20  be eligible for MFIP, a member of the assistance unit must be a 
 45.21  citizen of the United States, or a qualified noncitizen as 
 45.22  defined in section 256J.08, or a noncitizen who is otherwise 
 45.23  residing lawfully in the United States. 
 45.24     (b) A qualified noncitizen who entered the United States on 
 45.25  or after August 22, 1996, is eligible for MFIP.  However, TANF 
 45.26  dollars cannot be used to fund the MFIP benefits for an 
 45.27  individual under this paragraph for a period of five years after 
 45.28  the date of entry unless if the qualified noncitizen meets one 
 45.29  of the following criteria: 
 45.30     (1) was admitted to the United States as a refugee under 
 45.31  United States Code, title 8, section 1157; 
 45.32     (2) was granted asylum under United States Code, title 8, 
 45.33  section 1158; 
 45.34     (3) was granted withholding of deportation under the United 
 45.35  States Code, title 8, section 1253(h); 
 45.36     (4) is a veteran of the United States Armed Forces with an 
 46.1   honorable discharge for a reason other than noncitizen status, 
 46.2   or is a spouse or unmarried minor dependent child of the same; 
 46.3   or 
 46.4      (5) is an individual on active duty in the United States 
 46.5   Armed Forces, other than for training, or is a spouse or 
 46.6   unmarried minor dependent child of the same. 
 46.7      (c) A person who is not a qualified noncitizen but who is 
 46.8   otherwise residing lawfully in the United States is eligible for 
 46.9   MFIP.  However, TANF dollars cannot be used to fund the MFIP 
 46.10  benefits for an individual under this paragraph. 
 46.11     (d) For purposes of this subdivision, a nonimmigrant in one 
 46.12  or more of the classes listed in United States Code, title 8, 
 46.13  section 1101(a)(15), or an undocumented immigrant who resides in 
 46.14  the United States without the approval or acquiescence of the 
 46.15  Immigration and Naturalization Service, is not eligible for MFIP.
 46.16     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 46.17     Sec. 34.  Minnesota Statutes 2002, section 256J.48, 
 46.18  subdivision 1, is amended to read: 
 46.19     Subdivision 1.  [EMERGENCY FINANCIAL ASSISTANCE.] County 
 46.20  human service agencies shall grant emergency financial 
 46.21  assistance to any needy pregnant woman or needy family with a 
 46.22  child under the age of 21 who is or was within six months prior 
 46.23  to application living with an eligible caregiver relative 
 46.24  specified in section 256J.08. 
 46.25     Except for ongoing special diets, emergency assistance is 
 46.26  available to a family during one 30-day period in a consecutive 
 46.27  12-month 18-month period.  A county shall issue assistance for 
 46.28  needs that accrue before that 30-day period only when it is 
 46.29  necessary to resolve emergencies arising or continuing during 
 46.30  the 30-day period of eligibility.  When emergency needs 
 46.31  continue, a county may issue assistance for up to 30 days beyond 
 46.32  the initial 30-day period of eligibility, but only when 
 46.33  assistance is authorized during the initial period. 
 46.34     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 46.35     Sec. 35.  Minnesota Statutes 2002, section 256J.52, 
 46.36  subdivision 2, is amended to read: 
 47.1      Subd. 2.  [INITIAL ASSESSMENT.] (a) The job counselor must, 
 47.2   with the cooperation of the participant, assess the 
 47.3   participant's ability to obtain and retain employment.  This 
 47.4   initial assessment must include a review of the participant's 
 47.5   education level, prior employment or work experience, 
 47.6   transferable work skills, and existing job markets. 
 47.7      (b) In assessing the participant, the job counselor must 
 47.8   determine if the participant needs refresher courses for 
 47.9   professional certification or licensure, in which case, the job 
 47.10  search plan under subdivision 3 must include the courses 
 47.11  necessary to obtain the certification or licensure, in addition 
 47.12  to other work activities, provided the combination of the 
 47.13  courses and other work activities are at least for 40 hours per 
 47.14  week.  
 47.15     (c) If a participant can demonstrate to the satisfaction of 
 47.16  the county agency that lack of proficiency in English is a 
 47.17  barrier to obtaining suitable employment, the job counselor must 
 47.18  include participation in an intensive English as a second 
 47.19  language program if available or otherwise a regular English as 
 47.20  a second language program in the individual's employment plan 
 47.21  under subdivision 5.  Lack of proficiency in English is not 
 47.22  necessarily a barrier to employment.  
 47.23     (d) The job counselor may approve an education or training 
 47.24  plan, and postpone the job search requirement, if the 
 47.25  participant has a proposal for an education program which: 
 47.26     (1) can be completed within 24 12 months; and 
 47.27     (2) meets the criteria of section 256J.53, subdivisions 1, 
 47.28  2, 3, and 5. 
 47.29     (e) A participant who, at the time of the initial 
 47.30  assessment, presents a plan that includes farming as a 
 47.31  self-employed work activity must have an employment plan 
 47.32  developed under subdivision 5 that includes the farming as an 
 47.33  approved work activity. 
 47.34     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 47.35     Sec. 36.  Minnesota Statutes 2002, section 256J.53, 
 47.36  subdivision 1, is amended to read: 
 48.1      Subdivision 1.  [LENGTH OF PROGRAM.] In order for a 
 48.2   post-secondary education or training program to be approved work 
 48.3   activity as defined in section 256J.49, subdivision 13, clause 
 48.4   (18), it must be a program lasting 24 12 months or less, and the 
 48.5   participant must meet the requirements of subdivisions 2 and 3.  
 48.6   Participants who have an approved education plan in place as of 
 48.7   April 1, 2003, that allows 24 months of postsecondary education 
 48.8   or training shall be allowed to complete that plan provided that 
 48.9   the conditions specified in subdivisions 2 and 3 continue to be 
 48.10  met. 
 48.11     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 48.12     Sec. 37.  Minnesota Statutes 2002, section 256L.07, 
 48.13  subdivision 1, is amended to read: 
 48.14     Subdivision 1.  [GENERAL REQUIREMENTS.] (a) Children 
 48.15  enrolled in the original children's health plan as of September 
 48.16  30, 1992, children who enrolled in the MinnesotaCare program 
 48.17  after September 30, 1992, pursuant to Laws 1992, chapter 549, 
 48.18  article 4, section 17, and children who have family gross 
 48.19  incomes that are equal to or less than 175 percent of the 
 48.20  federal poverty guidelines are eligible without meeting the 
 48.21  requirements of subdivision 2, as long as they maintain 
 48.22  continuous coverage in the MinnesotaCare program or medical 
 48.23  assistance.  Children who apply for MinnesotaCare on or after 
 48.24  the implementation date of the employer-subsidized health 
 48.25  coverage program as described in Laws 1998, chapter 407, article 
 48.26  5, section 45, who have family gross incomes that are equal to 
 48.27  or less than 175 percent of the federal poverty guidelines, must 
 48.28  meet the requirements of subdivision 2 to be eligible for 
 48.29  MinnesotaCare. 
 48.30     (b) Families enrolled in MinnesotaCare under section 
 48.31  256L.04, subdivision 1, whose income increases above 275 percent 
 48.32  of the federal poverty guidelines, are no longer eligible for 
 48.33  the program and shall be disenrolled by the commissioner.  
 48.34  Individuals enrolled in MinnesotaCare under section 256L.04, 
 48.35  subdivision 7, whose income increases above 175 percent of the 
 48.36  federal poverty guidelines are no longer eligible for the 
 49.1   program and shall be disenrolled by the commissioner.  For 
 49.2   persons disenrolled under this subdivision, MinnesotaCare 
 49.3   coverage terminates the last day of the calendar month following 
 49.4   the month in which the commissioner determines that the income 
 49.5   of a family or individual exceeds program income limits.  
 49.6      (c) Notwithstanding paragraph (b), individuals and families 
 49.7   may remain enrolled in MinnesotaCare if ten percent of their 
 49.8   annual income is less than the annual premium for a policy with 
 49.9   a $500 deductible available through the Minnesota comprehensive 
 49.10  health association.  Individuals and families who are no longer 
 49.11  eligible for MinnesotaCare under this subdivision shall be given 
 49.12  an 18-month a six-month notice period from the date that 
 49.13  ineligibility is determined before disenrollment.  
 49.14     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 49.15     Sec. 38.  Minnesota Statutes 2002, section 256L.17, 
 49.16  subdivision 2, is amended to read: 
 49.17     Subd. 2.  [LIMIT ON TOTAL ASSETS.] (a) Effective July 1, 
 49.18  2002, or upon federal approval, whichever is later, in order to 
 49.19  be eligible for the MinnesotaCare program, a household of two or 
 49.20  more persons must not own more than $30,000 in total net assets, 
 49.21  and a household of one person must not own more than $15,000 in 
 49.22  total net assets. 
 49.23     (b) For purposes of this subdivision, assets are determined 
 49.24  according to section 256B.056, subdivision 3c.  In addition to 
 49.25  these maximum amounts, an eligible individual or family may 
 49.26  accrue interest on these amounts, but they must be reduced to 
 49.27  the maximum at the time of an eligibility redetermination.  The 
 49.28  value of assets that are not considered in determining 
 49.29  eligibility is the value of those assets excluded under the AFDC 
 49.30  state plan as of July 16, 1996, as required by the Personal 
 49.31  Responsibility and Work Opportunity Reconciliation Act of 1996 
 49.32  (PRWORA), Public Law 104-193, with the following exceptions: 
 49.33     (1) household goods and personal effects are not 
 49.34  considered; 
 49.35     (2) capital and operating assets of a trade or business up 
 49.36  to $200,000 are not considered; 
 50.1      (3) one motor vehicle is excluded for each person of legal 
 50.2   driving age who is employed or seeking employment; 
 50.3      (4) one burial plot and all other burial expenses equal to 
 50.4   the supplemental security income program asset limit are not 
 50.5   considered for each individual; 
 50.6      (5) court-ordered settlements up to $10,000 are not 
 50.7   considered; 
 50.8      (6) individual retirement accounts and funds are not 
 50.9   considered; and 
 50.10     (7) assets owned by children are not considered.  
 50.11     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 50.12     Sec. 39.  Laws 1997, chapter 203, article 9, section 21, as 
 50.13  amended by Laws 1998, chapter 407, article 6, section 111, Laws 
 50.14  2000, chapter 488, article 10, section 28, and Laws 2001, First 
 50.15  Special Session chapter 9, article 10, section 62, is amended to 
 50.16  read: 
 50.17     Sec. 21.  [INELIGIBILITY FOR STATE FUNDED PROGRAMS.] 
 50.18     (a) Effective on the date specified, the following persons 
 50.19  will be ineligible for general assistance and general assistance 
 50.20  medical care under Minnesota Statutes, chapter 256D, group 
 50.21  residential housing under Minnesota Statutes, chapter 256I, and 
 50.22  MFIP assistance under Minnesota Statutes, chapter 256J, funded 
 50.23  with state money: 
 50.24     (1) Beginning July 1, 2002, persons who are terminated from 
 50.25  or denied Supplemental Security Income due to the 1996 changes 
 50.26  in the federal law making persons whose alcohol or drug 
 50.27  addiction is a material factor contributing to the person's 
 50.28  disability ineligible for Supplemental Security Income, and are 
 50.29  eligible for general assistance under Minnesota Statutes, 
 50.30  section 256D.05, subdivision 1, paragraph (a), clause (15), 
 50.31  general assistance medical care under Minnesota Statutes, 
 50.32  chapter 256D, or group residential housing under Minnesota 
 50.33  Statutes, chapter 256I; and 
 50.34     (2) Beginning July 1, 2002, legal noncitizens who are 
 50.35  ineligible for Supplemental Security Income due to the 1996 
 50.36  changes in federal law making certain noncitizens ineligible for 
 51.1   these programs due to their noncitizen status; and 
 51.2      (3) Beginning July 1, 2003, legal noncitizens who are 
 51.3   eligible for MFIP assistance, either the cash assistance portion 
 51.4   or the food assistance portion, funded entirely with state money.
 51.5      (b) State money that remains unspent due to changes in 
 51.6   federal law enacted after May 12, 1997, that reduce state 
 51.7   spending for legal noncitizens or for persons whose alcohol or 
 51.8   drug addiction is a material factor contributing to the person's 
 51.9   disability, or enacted after February 1, 1998, that reduce state 
 51.10  spending for food benefits for legal noncitizens shall not 
 51.11  cancel and shall be deposited in the TANF reserve account. 
 51.12     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 51.13     Sec. 40.  Laws 2001, First Special Session chapter 3, 
 51.14  article 1, section 17, subdivision 11, as amended by Laws 2002, 
 51.15  chapter 220, article 2, section 6, is amended to read: 
 51.16     Subd. 11.  [CHILD CARE SERVICE GRANTS.] For child care 
 51.17  development activities under child care service grants according 
 51.18  to Minnesota Statutes, section 119B.21: 
 51.19       $1,865,000      .....     2002
 51.20       $1,365,000 $1,340,000      .....     2003
 51.21     Beginning in fiscal year 2004, the base is 
 51.22  $1,365,000 $1,340,000 from the general fund. 
 51.23     Any balance in the first year does not cancel but is 
 51.24  available in the second year. 
 51.25     Sec. 41.  Laws 2001, First Special Session chapter 9, 
 51.26  article 2, section 31, the effective date, is amended to read: 
 51.27     <b>[EFFECTIVE DATE.]</b> This section is effective January July 1, 
 51.28  2003. 
 51.29     Sec. 42.  [CHILD CARE ASSISTANCE PARENT FEE SCHEDULE.] 
 51.30     The commissioner shall amend the parent fee schedule in 
 51.31  Minnesota Rules, chapter 3400, to do the following: 
 51.32     (1) parent fees for families with incomes between 100.01 
 51.33  percent and 135 percent of the federal poverty guidelines must 
 51.34  equal 2.42 percent of adjusted gross income for families at 135 
 51.35  percent of the federal poverty guidelines; 
 51.36     (2) parent fees for families with incomes between 135.01 
 52.1   percent and 165 percent of the federal poverty guidelines must 
 52.2   equal three percent of adjusted gross income for families at 165 
 52.3   percent of the federal poverty guidelines; 
 52.4      (3) parent fees for families with incomes between 165.01 
 52.5   percent and 250 percent of the federal poverty guidelines must 
 52.6   begin at 4.15 percent of the adjusted gross income and provide 
 52.7   for graduated movement of fee increases; and 
 52.8      (4) parent fees for families at 250 percent of the federal 
 52.9   poverty guidelines must equal 15 percent of gross annual income. 
 52.10     <b>[EFFECTIVE DATE.]</b> This section is effective April 1, 2003. 
 52.11     Sec. 43.  [DIRECTION TO THE COMMISSIONER.] 
 52.12     By April 1, 2003, the commissioner of human services shall 
 52.13  propose revisions to the standards listed under Minnesota 
 52.14  Statutes, section 256J.24, subdivision 5, with an additional 
 52.15  scale of standards for assistance units that contain one or more 
 52.16  persons ineligible for federal food benefits due to citizenship 
 52.17  status. 
 52.18     Sec. 44.  [REPEALER.] 
 52.19     Subdivision 1.  [HOME-SHARING GRANT PROGRAM; FAIRVIEW 
 52.20  UNIVERSITY MEDICAL CENTER.] Minnesota Statutes 2002, sections 
 52.21  256.973; and 256B.195, subdivision 5, are repealed effective 
 52.22  July 1, 2003. 
 52.23     Subd. 2.  [MINNESOTA FOOD ASSISTANCE PROGRAM.] Minnesota 
 52.24  Statutes 2002, section 256D.053, is repealed effective April 1, 
 52.25  2003. 
 52.26     Subd. 3.  [MFIP NONCITIZENS; FOOD PORTION; STATE 
 52.27  FUNDING.] Minnesota Statutes 2002, section 256J.11, subdivisions 
 52.28  2 and 3, are repealed effective April 1, 2003. 
 52.29     Subd. 4.  [PARENT FEE SCHEDULE.] Laws 1999, chapter 205, 
 52.30  article 1, section 63, is repealed effective April 1, 2003. 
 52.31     Subd. 5.  [MEDICAL ASSISTANCE INCOME DISREGARD FOR 
 52.32  FAMILIES.] Minnesota Statutes 2002, section 256B.056, 
 52.33  subdivision 1c, is repealed effective April 1, 2003. 
 52.34     Subd. 6.  [MEDICAL ASSISTANCE ASSET LIMIT FOR 
 52.35  FAMILIES.] Minnesota Statutes 2002, section 256B.056, 
 52.36  subdivision 3c, is repealed effective April 1, 2003. 
 53.1      Sec. 45.  [EFFECTIVE DATE.] 
 53.2      Sections 1 to 44 are effective the day following final 
 53.3   enactment unless otherwise specified. 
 53.4                              ARTICLE 4 
 53.5                     ENVIRONMENT AND AGRICULTURE 
 53.6   Section 1.  [ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS 
 53.7   AND REDUCTIONS.] 
 53.8      The dollar amounts in the columns under "APPROPRIATION 
 53.9   CHANGE" are added to or, if shown in parentheses, are subtracted 
 53.10  from the appropriations in Laws 2001, First Special Session 
 53.11  chapter 2, as amended, to the specified agencies.  The 
 53.12  appropriations or reductions are from the general fund or other 
 53.13  named fund for the fiscal year ending June 30, 2003.  
 53.14                                                         2003 
 53.15                          SUMMARY BY FUND 
 53.16  General                                           $  (7,151,000)
 53.17  Solid Waste                                             750,000
 53.18  TOTAL APPROPRIATION CHANGE                        $  (6,401,000)
 53.19                                              APPROPRIATION CHANGE
 53.20  Sec. 2.  POLLUTION CONTROL AGENCY
 53.21  Subdivision 1.  Total Reduction                        (357,000)
 53.22                Summary by Fund
 53.23  General              (1,107,000)
 53.24  Solid Waste             750,000
 53.25  The transfers and reductions from the 
 53.26  amounts appropriated in Laws 2001, 
 53.27  First Special Session chapter 2, 
 53.28  section 2, are specified in 
 53.29  subdivisions 2 to 4. 
 53.30  Subd. 2.  Water Programs 
 53.31                       (685,000)
 53.32  $200,000 of this amount is from the 
 53.33  appropriation in Laws 2001, First 
 53.34  Special Session chapter 2, section 2, 
 53.35  subdivision 2, for individual sewage 
 53.36  treatment system grants.  This is a 
 53.37  onetime only reduction. 
 53.38  $17,000 is from the amount appropriated 
 53.39  in Laws 2001, First Special Session 
 53.40  chapter 2, section 2, subdivision 2, 
 53.41  for individual sewage treatment system 
 53.42  administration that is transferred to 
 53.43  the board of water and soil resources. 
 54.1   $468,000 is from that portion of grants 
 54.2   appropriated in Laws 2001, First 
 54.3   Special Session chapter 2, section 2, 
 54.4   subdivision 2, for county 
 54.5   administration of the feedlot permit 
 54.6   program that is transferred to the 
 54.7   board of water and soil resources. 
 54.8   Subd. 3.  Administrative Support   
 54.9                         750,000 
 54.10  By June 30, 2003, the commissioner 
 54.11  shall transfer this amount from the 
 54.12  solid waste fund to the debt service 
 54.13  account in the general fund for the 
 54.14  payment of debt service on closed 
 54.15  landfill program bonds.  This amount is 
 54.16  a base change for fiscal year 2004 and 
 54.17  each year thereafter. 
 54.18  Subd. 4.  Agencywide Reductions
 54.19                       (422,000)
 54.20  This amount is a base change for fiscal 
 54.21  year 2004 and each year thereafter. 
 54.22  Sec. 3.  OFFICE OF ENVIRONMENTAL
 54.23  ASSISTANCE                                             (409,000)
 54.24  This reduction is from the amount 
 54.25  appropriated in Laws 2001, First 
 54.26  Special Session chapter 2, section 3. 
 54.27  Of this amount, $210,000 is from the 
 54.28  competitive grant program, and $199,000 
 54.29  is from administration. 
 54.30  Of this amount, $199,000 is a base 
 54.31  change for fiscal year 2004 and each 
 54.32  year thereafter. 
 54.33  Sec. 4.  ZOOLOGICAL BOARD                              (270,000)
 54.34  This reduction is from the amount 
 54.35  appropriated in Laws 2001, First 
 54.36  Special Session chapter 2, section 4. 
 54.37  This reduction is a permanent base 
 54.38  change. 
 54.39  Sec. 5.  NATURAL RESOURCES    
 54.40  Subdivision 1.  Total Reduction                      (3,997,000)
 54.41  This reduction is from the amounts 
 54.42  appropriated in Laws 2001, First 
 54.43  Special Session chapter 2, section 5.  
 54.44  Of this amount, $3,819,000 is a base 
 54.45  reduction for fiscal year 2004 and each 
 54.46  year thereafter. 
 54.47  Subd. 2.  Land and Mineral
 54.48  Resources Management    
 54.49                       (257,000)
 54.50  Subd. 3.  Water Resources Management
 54.51                       (431,000)
 55.1   Of this amount, $25,000 is from the 
 55.2   appropriation for activities associated 
 55.3   with the Red River mediation agreement. 
 55.4   Subd. 4.  Forest Management   
 55.5                      (1,337,000)
 55.6   Subd. 5.  Parks and Recreation
 55.7   Management                                        
 55.8                        (859,000)
 55.9   The parks working capital account must 
 55.10  be used to maintain camping facilities 
 55.11  at the level currently planned for the 
 55.12  fiscal year ending June 30, 2003. 
 55.13  Subd. 6.  Trails and Waterways
 55.14  Management                                         
 55.15                        (70,000)
 55.16  Of this amount, $6,657 is from the 
 55.17  balance of the appropriation made in 
 55.18  Laws 1997, chapter 216, section 5, 
 55.19  subdivision 6, for the Taconite Harbor 
 55.20  safe harbor project. 
 55.21  Subd. 7.  Fish Management
 55.22                         (1,000)
 55.23  Subd. 8.  Wildlife Management   
 55.24                        (44,000) 
 55.25  Of this amount, $22,000 is a reduction 
 55.26  from the appropriation for prescribed 
 55.27  burning of grassland, wetland, and 
 55.28  forest habitats, and $22,000 is a 
 55.29  reduction from the appropriation for 
 55.30  the shearing and burning of brushland 
 55.31  habitat. 
 55.32  Subd. 9.  Ecological Services   
 55.33                       (137,000)  
 55.34  Subd. 10.  Enforcement      
 55.35                       (110,000)
 55.36  Subd. 11.  Operations Support  
 55.37                       (751,000)
 55.38  Of this amount, $171,000 is a reduction 
 55.39  in the appropriation for local 
 55.40  government units and organizations to 
 55.41  acquire and develop natural areas and 
 55.42  greenways. 
 55.43  Sec. 6.  BOARD OF WATER AND
 55.44  SOIL RESOURCES                                   (1,368,000)
 55.45  This reduction is from the amounts 
 55.46  appropriated in Laws 2001, First 
 55.47  Special Session chapter 2, section 6. 
 55.48  Of this amount, $250,000 is from grants 
 56.1   for the cost-share program, and 
 56.2   $300,000 is from the Red River 
 56.3   set-aside program.  These reductions 
 56.4   are onetime only. 
 56.5   Of this amount, $688,000 is from the 
 56.6   appropriation made in Laws 2001, First 
 56.7   Special Session chapter 2, section 6, 
 56.8   for natural resources block grants to 
 56.9   local governments. This reduction is 
 56.10  onetime only. 
 56.11     Sec. 7.  [TRANSFER AND APPROPRIATION REDUCTION.] 
 56.12     Subdivision 1.  [TRANSFER.] The commissioner of the 
 56.13  pollution control agency shall transfer $11,000,000 from the 
 56.14  unreserved balance of the solid waste fund to the commissioner 
 56.15  of finance for cancellation to the general fund. 
 56.16     Subd. 2.  [APPROPRIATION REDUCTION.] After consultation 
 56.17  with the chair of the legislative commission on Minnesota 
 56.18  resources, the commissioner of finance shall reduce $2,400,000 
 56.19  from appropriations in the future resources fund in accordance 
 56.20  with Minnesota Statutes, section 16A.152, subdivision 4, 
 56.21  paragraph (c). 
 56.22     Subd. 3.  [AUTHORIZATION FOR TRUST FUND TRANSFER.] The 
 56.23  legislative commission on Minnesota resources may authorize up 
 56.24  to $2,400,000 from environment and natural resources trust fund 
 56.25  appropriations for the biennium ending June 30, 2003, to replace 
 56.26  future resources fund appropriation reductions for projects 
 56.27  under subdivision 2.  If authorized by the commission, the chair 
 56.28  must notify the commissioner of finance with sufficient project 
 56.29  detail so that the commissioner can transfer the money from the 
 56.30  environment and natural resources trust fund. 
 56.31     Sec. 8.  Minnesota Statutes 2002, section 115A.908, 
 56.32  subdivision 2, is amended to read: 
 56.33     Subd. 2.  [DEPOSIT OF REVENUE.] (a) From March 1, 2003, 
 56.34  through June 30, 2007, revenue collected shall be credited to 
 56.35  the general fund. 
 56.36     (b) After June 30, 2007, revenue collected shall be 
 56.37  credited to the motor vehicle transfer account in the 
 56.38  environmental fund.  As cash flow permits, the commissioner of 
 56.39  finance must transfer (1) $3,200,000 each fiscal year from the 
 56.40  motor vehicle transfer account to the environmental response, 
 57.1   compensation, and compliance account established in section 
 57.2   115B.20; and (2) $1,200,000 each fiscal year from the motor 
 57.3   vehicle transfer account to the general fund. 
 57.4      Sec. 9.  Minnesota Statutes 2002, section 116P.05, 
 57.5   subdivision 2, is amended to read: 
 57.6      Subd. 2.  [DUTIES.] (a) The commission shall recommend a 
 57.7   budget plan for expenditures from the environment and natural 
 57.8   resources trust fund and shall adopt a strategic plan as 
 57.9   provided in section 116P.08.  
 57.10     (b) After June 30, 2007, the commission shall recommend 
 57.11  expenditures to the legislature from the Minnesota future 
 57.12  resources fund under section 116P.13.  
 57.13     (c) It is a condition of acceptance of the appropriations 
 57.14  made from the Minnesota future resources fund, Minnesota 
 57.15  environment and natural resources trust fund, and oil overcharge 
 57.16  money under section 4.071, subdivision 2, that the agency or 
 57.17  entity receiving the appropriation must submit a work program 
 57.18  and semiannual progress reports in the form determined by the 
 57.19  legislative commission on Minnesota resources.  None of the 
 57.20  money provided may be spent unless the commission has approved 
 57.21  the pertinent work program. 
 57.22     (d) The peer review panel created under section 116P.08 
 57.23  must also review, comment, and report to the commission on 
 57.24  research proposals applying for an appropriation from the 
 57.25  Minnesota resources fund and from oil overcharge money under 
 57.26  section 4.071, subdivision 2. 
 57.27     (e) The commission may adopt operating procedures to 
 57.28  fulfill its duties under sections 116P.01 to 116P.13. 
 57.29     Sec. 10.  Minnesota Statutes 2002, section 297F.10, 
 57.30  subdivision 1, is amended to read: 
 57.31     Subdivision 1.  [TAX AND USE TAX ON CIGARETTES.] Revenue 
 57.32  received from cigarette taxes, as well as related penalties, 
 57.33  interest, license fees, and miscellaneous sources of revenue 
 57.34  shall be deposited by the commissioner in the state treasury and 
 57.35  credited as follows: 
 57.36     (a) first to the general obligation special tax bond debt 
 58.1   service account in each fiscal year the amount required to 
 58.2   increase the balance on hand in the account on each December 1 
 58.3   to an amount equal to the full amount of principal and interest 
 58.4   to come due on all outstanding bonds whose debt service is 
 58.5   payable primarily from the proceeds of the tax to and including 
 58.6   the second following July 1; and 
 58.7      (b) after the requirements of paragraph (a) have been met: 
 58.8      (1) the revenue produced by one mill of the tax on 
 58.9   cigarettes weighing not more than three pounds a thousand and 
 58.10  two mills of the tax on cigarettes weighing more than three 
 58.11  pounds a thousand must be credited to the general fund from 
 58.12  March 1, 2003, through June 30, 2007, and credited to the 
 58.13  Minnesota future resources fund after June 30, 2007; and 
 58.14     (2) the balance of the revenues derived from taxes, 
 58.15  penalties, and interest (under this chapter) and from license 
 58.16  fees and miscellaneous sources of revenue shall be credited to 
 58.17  the general fund. 
 58.18     Sec. 11.  [EFFECTIVE DATE.] 
 58.19     Sections 1 to 6 are effective the day following final 
 58.20  enactment.  Sections 7 to 9 are effective March 1, 2003.  
 58.21  Section 10 is effective for all revenues received after February 
 58.22  28, 2003. 
 58.23                             ARTICLE 5
 58.24                        ECONOMIC DEVELOPMENT
 58.25  Section 1.  [ECONOMIC DEVELOPMENT REDUCTIONS.] 
 58.26     The dollar amounts in the columns under "APPROPRIATION 
 58.27  CHANGE" are added to or, if shown in parentheses, are subtracted 
 58.28  from the appropriations in Laws 2001, First Special Session 
 58.29  chapter 4 or 10, as amended, by Laws 2002, chapter 220 or 374, 
 58.30  as amended, or other law to the specified agencies.  The 
 58.31  appropriations are from the general fund or other named fund and 
 58.32  are available for the fiscal years indicated for each purpose.  
 58.33  The figure "2003" means that the addition to or subtraction from 
 58.34  the appropriations listed under the figure is for the fiscal 
 58.35  year ending June 30, 2003.  The reductions are permanent 
 58.36  adjustments to the base funding of the affected agencies and 
 59.1   programs except as otherwise stated. 
 59.2                                                          2003 
 59.3   TRANSFERS FROM OTHER FUNDS                       $   64,000,000 
 59.4   APPROPRIATION REDUCTIONS                             (9,691,000)
 59.5                                               APPROPRIATION CHANGE 
 59.6   Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT              (4,217,000)
 59.7   Of this amount, $1,323,964 is from the 
 59.8   appropriation made in Laws 2001, First 
 59.9   Special Session chapter 4, article 1, 
 59.10  section 2, subdivision 2, for 
 59.11  contaminated site grants. 
 59.12  Of this amount, $35,000 is from the 
 59.13  appropriation made in Laws 2001, First 
 59.14  Special Session chapter 4, article 1, 
 59.15  section 2, subdivision 2, for a onetime 
 59.16  grant for a pilot project incubated by 
 59.17  Blue Earth county named the Rural 
 59.18  Advanced Business Facilitation 
 59.19  Program.  This is a onetime reduction. 
 59.20  Of this amount, $700,000 is from the 
 59.21  appropriation made in Laws 2001, First 
 59.22  Special Session chapter 4, article 1, 
 59.23  section 2, subdivision 2, for Minnesota 
 59.24  investment fund grants. 
 59.25  Of this amount, $1,000,000 is from the 
 59.26  appropriation made in Laws 2001, First 
 59.27  Special Session chapter 4, article 1, 
 59.28  section 2, subdivision 4, for the job 
 59.29  skills partnership and pathways 
 59.30  programs. 
 59.31  Of this amount, $480,000 is from the 
 59.32  appropriation made in Laws 2001, First 
 59.33  Special Session chapter 4, article 1, 
 59.34  section 2, subdivision 5, for grants to 
 59.35  the Minnesota Film Board for a film 
 59.36  production jobs fund to stimulate film 
 59.37  production in Minnesota. 
 59.38  Sec. 3.  MINNESOTA TECHNOLOGY, INC.                    (730,000)
 59.39  Sec. 4.  ECONOMIC SECURITY                              (65,000)
 59.40  Of this amount, $189,000 is a reduction 
 59.41  to the agency's base funding.  This 
 59.42  reduction must be taken from agency 
 59.43  operations other than the workforce 
 59.44  services for the blind division. 
 59.45  Of this amount, $124,000 is an increase 
 59.46  in the funding for the workforce 
 59.47  services for the blind division.  None 
 59.48  of this increase may be used to resume 
 59.49  operations of the store previously 
 59.50  operated by the division.  The base 
 59.51  funding for workforce services for the 
 59.52  blind in the 2004-2005 biennium shall 
 59.53  be $5,038,000 each year. 
 59.54  To the extent that any reductions 
 59.55  reflected in the department would 
 59.56  violate federal requirements regarding 
 60.1   maintenance of effort, the commissioner 
 60.2   is authorized to exempt from reduction 
 60.3   the affected programs to the extent 
 60.4   required to comply with federal 
 60.5   regulations.  The commissioner shall 
 60.6   realize the reductions that would 
 60.7   otherwise apply from programs and 
 60.8   administrative costs funded with 
 60.9   general fund dollars that do not have 
 60.10  maintenance of effort requirements. 
 60.11  Sec. 5.  HOUSING FINANCE AGENCY                      (2,205,000)
 60.12  Sec. 6.  COMMERCE                                      (684,000)
 60.13  Of this amount, $250,000 is from the 
 60.14  fiscal year 2003 appropriation made in 
 60.15  Laws 2002, chapter 378, section 3, for 
 60.16  a school employee insurance plan study. 
 60.17  The budget base for that study for 
 60.18  fiscal year 2004 is reduced by 
 60.19  $400,000.  These reductions are for 
 60.20  fiscal years 2003 and 2004 only. 
 60.21  Sec. 7.  LABOR AND INDUSTRY                            (118,000)
 60.22  Sec. 8.  BUREAU OF MEDIATION SERVICES                  (122,000)
 60.23  Of this amount, $47,000 is from 
 60.24  labor-management cooperation grants 
 60.25  made to area labor-management 
 60.26  committees. 
 60.27  Sec. 9.  MINNESOTA HISTORICAL SOCIETY                (1,066,000)
 60.28  Sec. 10.  COUNCIL ON BLACK MINNESOTANS                  (13,000)
 60.29  Sec. 11.  COUNCIL ON CHICANO-LATINO AFFAIRS             (13,000)
 60.30  Sec. 12.  COUNCIL ON ASIAN-PACIFIC MINNESOTANS          (11,000)
 60.31  Sec. 13.  INDIAN AFFAIRS COUNCIL                        (23,000)
 60.32  Sec. 14.  BOARD OF THE ARTS                            (384,000)
 60.33  Of this amount, $344,000 is from the 
 60.34  appropriation made in Laws 2001, First 
 60.35  Special Session chapter 10, article 1, 
 60.36  section 24, subdivision 3, for grants 
 60.37  programs. 
 60.38  Sec. 15.  HUMANITIES COMMISSION                         (40,000)
 60.39     Sec. 16.  Laws 2002, chapter 220, article 13, section 9, 
 60.40  subdivision 2, as amended by Laws 2002, chapter 374, article 8, 
 60.41  section 6, is amended to read: 
 60.42     Subd. 2.  [SPECIAL COMPENSATION FUND.] After June 1, 2003, 
 60.43  but no later than June 30, 2003, the commissioner of finance 
 60.44  shall transfer $250,000,000 $265,000,000 in assets of the excess 
 60.45  surplus account of the special compensation fund created under 
 60.46  Minnesota Statutes, section 176.129, to the general fund. 
 60.47     Sec. 17.  [MINNESOTA MINERALS 21ST CENTURY FUND.] 
 61.1      By June 30, 2003, the commissioner of finance shall 
 61.2   transfer $49,000,000 from the Minnesota minerals 21st century 
 61.3   fund established under Minnesota Statutes, section 116J.423, to 
 61.4   the commissioner of finance for cancellation to the general fund.
 61.5      Sec. 18.  [EFFECTIVE DATE.] 
 61.6      Sections 1 to 17 are effective the day following final 
 61.7   enactment, unless otherwise specified. 
 61.8                              ARTICLE 6 
 61.9                            TRANSPORTATION 
 61.10  Section 1.  [TRANSPORTATION AND OTHER AGENCIES; APPROPRIATIONS.] 
 61.11     The dollar amounts in the columns marked "APPROPRIATION 
 61.12  CHANGE" are added to or, if shown in parentheses, are subtracted 
 61.13  from the appropriations for the fiscal year ending June 30, 
 61.14  2003, in Laws 2001, First Special Session chapter 8 or 9, or 
 61.15  other law, to the specified agencies.  The figure "2003" means 
 61.16  that the addition to or subtraction from the appropriations 
 61.17  listed under the figure is for the fiscal year ending June 30, 
 61.18  2003.  The appropriations are from the general fund or other 
 61.19  named fund and are available for the fiscal years indicated for 
 61.20  each purpose.  
 61.21                                                          2003    
 61.22  APPROPRIATION REDUCTIONS - GENERAL FUND              (2,615,000) 
 61.23  CANCELLATIONS - GENERAL FUND                       (130,000,000) 
 61.24  TRUNK HIGHWAY BOND PROCEEDS ACCOUNT - 
 61.25  TRUNK HIGHWAY FUND                                  130,130,000
 61.26  TRANSFERS FROM OTHER FUNDS                           15,000,000 
 61.27                                             APPROPRIATION CHANGE
 61.28  Sec. 2.  TRANSPORTATION 
 61.29  Subdivision 1.  Total Appropriation Changes     
 61.30                          Summary by Fund 
 61.31  General Fund - Cancellations                       (130,000,000) 
 61.32  Trunk Highway Fund                                  131,500,000 
 61.33  Transfers From Other Funds                           15,000,000 
 61.34  Subd. 2.  Aeronautics 
 61.35  By June 30, 2003, the commissioner of 
 61.36  finance shall transfer $15,000,000 of 
 61.37  the cash balance in the state airports 
 61.38  fund to the general fund. 
 62.1   Subd. 3.  Transit Administration                        
 62.2   The agency's trunk highway fund budget 
 62.3   base for this activity is reduced by 
 62.4   $50,000 for each year of the 2004-2005 
 62.5   fiscal biennium. 
 62.6   Subd. 4.  Motor Carrier Regulation                      
 62.7   The agency's trunk highway fund budget 
 62.8   base for this program is reduced by 
 62.9   $250,000 for each year of the 2004-2005 
 62.10  fiscal biennium. 
 62.11  Subd. 5.  State Roads 
 62.12  (a) State Road Construction                         130,000,000 
 62.13  This appropriation is from the trunk 
 62.14  highway bond proceeds account in the 
 62.15  trunk highway fund and is for the 
 62.16  purposes of Laws 2000, chapter 479, 
 62.17  article 1, section 2, subdivision 3.  
 62.18  This appropriation is available until 
 62.19  spent. 
 62.20  Of the general fund appropriation in 
 62.21  Laws 2000, chapter 479, article 1, 
 62.22  section 2, subdivision 3, $130,000,000 
 62.23  cancels to the general fund. 
 62.24  (b) Central Engineering Services                      
 62.25  The agency's trunk highway fund budget 
 62.26  base for this program is reduced by 
 62.27  $1,200,000 for each year of the 
 62.28  2004-2005 fiscal biennium. 
 62.29  (c) Design and Construction Engineering                 
 62.30  The agency's trunk highway fund budget 
 62.31  base for this program is reduced by 
 62.32  $600,000 for each year of the 2004-2005 
 62.33  fiscal biennium. 
 62.34  (d) State Road Operations                             
 62.35  The agency's trunk highway fund budget 
 62.36  base for this program is reduced by 
 62.37  $3,500,000 for each year of the 
 62.38  2004-2005 fiscal biennium. 
 62.39  Of this reduction $1,000,000 each year 
 62.40  must come from reduction of the highway 
 62.41  helper program. 
 62.42  Of this reduction $500,000 each year 
 62.43  must come from reduction of the 
 62.44  transportation worker program. 
 62.45  Subd. 6.  General Support                             
 62.46  The agency's trunk highway fund budget 
 62.47  base for this program is reduced by 
 62.48  $4,000,000 for each year of the 
 62.49  2004-2005 fiscal biennium. 
 62.50  Of this reduction $2,000,000 each year 
 62.51  must come from information technology 
 62.52  expenditures. 
 63.1   Sec. 3.  METROPOLITAN COUNCIL TRANSIT                (2,615,000) 
 63.2   This reduction reduces the agency's 
 63.3   2004-2005 budget base by $2,615,000. 
 63.4   Sec. 4.  PUBLIC SAFETY 
 63.5   Subdivision 1.  Base Reductions                                  
 63.6   The reductions in this section are from 
 63.7   the trunk highway fund. 
 63.8   Subd. 2.  Administration and Related Services           
 63.9   The agency's trunk highway fund budget 
 63.10  base for this program is reduced by 
 63.11  $500,000 for each year of the 2004-2005 
 63.12  fiscal biennium. 
 63.13  Subd. 3.  Driver and Vehicle Services                 
 63.14  The agency's trunk highway fund budget 
 63.15  base is reduced by $1,000,000 for each 
 63.16  year of the 2004-2005 fiscal biennium. 
 63.17  Sec. 5.  BOND SALE EXPENSES                             130,000
 63.18  To the commissioner of finance for bond 
 63.19  sale expenses under Minnesota Statutes, 
 63.20  section 16A.641, subdivision 8.  This 
 63.21  appropriation is from the trunk highway 
 63.22  bond proceeds account in the trunk 
 63.23  highway fund.  This appropriation is 
 63.24  available until spent. 
 63.25     Sec. 6.  [BOND SALE AUTHORIZATION.] 
 63.26     To provide the money appropriated in this act from the 
 63.27  trunk highway bond proceeds account, the commissioner of finance 
 63.28  shall sell and issue bonds of the state in an amount up to 
 63.29  $130,130,000 in the manner, upon the terms, and with the effect 
 63.30  prescribed by Minnesota Statutes, sections 167.50 to 167.52, and 
 63.31  by the Minnesota Constitution, article XIV, section 11, at the 
 63.32  times and in the amounts requested by the commissioner of 
 63.33  transportation.  The proceeds of the bonds, except accrued 
 63.34  interest and any premium received on the sale of the bonds, must 
 63.35  be credited to the trunk highway bond proceeds account in the 
 63.36  trunk highway fund. 
 63.37     Sec. 7.  [SALE OF STATE AIRPLANE.] 
 63.38     The commissioner of transportation shall take all necessary 
 63.39  steps to sell at the earliest feasible date the airplane 
 63.40  described in Laws 1997, chapter 159, article 1, section 2, 
 63.41  subdivision 2, paragraph (c).  The proceeds from the sale of the 
 63.42  airplane must be deposited in the general fund. 
 64.1      Sec. 8.  [DRIVER LICENSE STATION CLOSURES; MORATORIUM.] 
 64.2      Until June 30, 2005, the commissioner of public safety may 
 64.3   not close any driver license examination station. 
 64.4      Sec. 9.  [EFFECTIVE DATE.] 
 64.5      Sections 1 to 8 are effective the day following final 
 64.6   enactment. 
 64.7                              ARTICLE 7 
 64.8                   CRIMINAL JUSTICE APPROPRIATIONS 
 64.9   Section 1.  [APPROPRIATIONS/REDUCTIONS.] 
 64.10     The dollar amounts in the columns under "APPROPRIATION 
 64.11  CHANGE" are added to or, if shown in parentheses, are subtracted 
 64.12  from the appropriations in Laws 2001, First Special Session 
 64.13  chapter 8 or 9, or other law, as amended by Laws 2002, chapter 
 64.14  220 or 374, or other law to the specified agencies.  The 
 64.15  appropriations are from the general fund or other named fund and 
 64.16  are available for the fiscal years indicated for each purpose.  
 64.17  The figure "2003" means that the addition to or subtraction from 
 64.18  the appropriations listed under the figure is for the fiscal 
 64.19  year ending June 30, 2003. 
 64.20     The appropriation reductions in this article also reduce 
 64.21  the corresponding budget base by the same amount in subsequent 
 64.22  years unless otherwise indicated. 
 64.23                                             APPROPRIATION CHANGE 
 64.24                                                         2003
 64.25  Sec. 2.  SUPREME COURT                              (1,732,000) 
 64.26  No portion of this reduction may come 
 64.27  from a reduction in spending of funds 
 64.28  appropriated to the courts for the 
 64.29  Minnesota court information system. 
 64.30  Of this amount, $442,000 is a reduction 
 64.31  in funding for civil legal services. 
 64.32  Sec. 3.  COURT OF APPEALS                             (321,000) 
 64.33  Sec. 4.  DISTRICT COURTS                            (3,844,000) 
 64.34  Sec. 5.  UNIFORM LAWS COMMISSION                        (1,000) 
 64.35  Sec. 6.  HUMAN RIGHTS                                 (146,000) 
 64.36  Sec. 7.  BOARD OF PUBLIC
 64.37  DEFENSE                                             (1,537,000) 
 64.38  Sec. 8.  CORRECTIONS                                (2,000,000) 
 64.39  To the extent possible, the 
 65.1   commissioner of corrections must aim 
 65.2   these reductions at juvenile services, 
 65.3   community services, and operations 
 65.4   support.  However, the commissioner may 
 65.5   direct the reduction as appropriate to 
 65.6   achieve the greatest efficiencies, 
 65.7   considering the demands and resources 
 65.8   of the entire department. 
 65.9   No portion of this reduction may come 
 65.10  from a reduction in spending of funds 
 65.11  appropriated to the department for 
 65.12  CriMNet. 
 65.13  Sec. 9.  PUBLIC SAFETY                              (3,425,000)
 65.14  To the maximum extent possible, the 
 65.15  commissioner must make reductions that 
 65.16  do not adversely affect public safety 
 65.17  or the ability of the state of 
 65.18  Minnesota and local public safety 
 65.19  professionals to prepare for and 
 65.20  recover from acts of terrorism.  
 65.21  Of this amount, $2,500,000 is a 
 65.22  reduction to CriMNet local planning and 
 65.23  implementation grants under Minnesota 
 65.24  Statutes, section 299C.65, subdivisions 
 65.25  6 and 7.  This is a onetime reduction. 
 65.26  Sec. 10.  OMBUDSMAN FOR CORRECTIONS                    (33,000)
 65.27  Sec. 11.  SENTENCING GUIDELINES
 65.28  COMMISSION                                             (17,000) 
 65.29  Sec. 12.  BOARD OF PRIVATE DETECTIVE
 65.30  AND PROTECTIVE AGENT SERVICES                           (5,000)
 65.31     Sec. 13.  Minnesota Statutes 2002, section 299A.42, is 
 65.32  amended to read: 
 65.33     299A.42 [PUBLIC SAFETY OFFICER'S BENEFIT ACCOUNT.] 
 65.34     The public safety officer's benefit account is created in 
 65.35  the state treasury.  Money in the account consists of money 
 65.36  transferred and appropriated to that account.  Money in the 
 65.37  account that is not expended in the fiscal year in which it is 
 65.38  transferred or appropriated does not revert to the general fund 
 65.39  until claims for reimbursement under section 299A.465 that are 
 65.40  submitted in that fiscal year are either paid or denied. 
 65.41     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 65.42     Sec. 14.  Minnesota Statutes 2002, section 299A.44, 
 65.43  subdivision 1, is amended to read: 
 65.44     Subdivision 1.  [PAYMENT REQUIRED.] (a) On certification to 
 65.45  the governor by the commissioner of public safety that a public 
 65.46  safety officer employed within this state has been killed in the 
 65.47  line of duty, leaving a spouse or one or more eligible 
 66.1   dependents, the commissioner of finance shall pay $100,000 from 
 66.2   the public safety officer's benefit account, as follows: 
 66.3      (1) if there is no dependent child, to the spouse; 
 66.4      (2) if there is no spouse, to the dependent child or 
 66.5   children in equal shares; 
 66.6      (3) if there are both a spouse and one or more dependent 
 66.7   children, one-half to the spouse and one-half to the child or 
 66.8   children, in equal shares; 
 66.9      (4) if there is no surviving spouse or dependent child or 
 66.10  children, to the parent or parents dependent for support on the 
 66.11  decedent, in equal shares; or 
 66.12     (5) if there is no surviving spouse, dependent child, or 
 66.13  dependent parent, then no payment may be made from the public 
 66.14  safety officer's benefit fund to the public safety officer's 
 66.15  estate.  
 66.16     (b) If there are both a spouse and one or more dependent 
 66.17  children under age 18, the spouse, at the spouse's discretion, 
 66.18  may spend a maximum of one-third of a child's share on medical 
 66.19  or dental treatment for the child or the child's education.  
 66.20  Expenditures under this paragraph on behalf of a child do not 
 66.21  diminish the shares of any other children.  In addition, a 
 66.22  spouse, at the spouse's discretion, may expend money from a 
 66.23  child's share to pay state and federal taxes on any interest 
 66.24  accrued on the share. 
 66.25     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 66.26     Sec. 15.  Minnesota Statutes 2002, section 299A.465, 
 66.27  subdivision 1, is amended to read: 
 66.28     Subdivision 1.  [OFFICER OR FIREFIGHTER DISABLED IN LINE OF 
 66.29  DUTY.] (a) This subdivision applies when a peace officer or 
 66.30  firefighter suffers a disabling injury that under the following 
 66.31  circumstances: 
 66.32     (1) the injury is physical in nature and results in the 
 66.33  officer's or firefighter's retirement or separation from 
 66.34  service; 
 66.35     (2) the injury occurs while the officer or firefighter is 
 66.36  acting in the course and scope of duties as a peace officer or 
 67.1   firefighter; and 
 67.2      (3) the officer or firefighter has been approved to receive 
 67.3   the officer's or firefighter's duty-related disability pension. 
 67.4      (b) The officer's or firefighter's employer shall continue 
 67.5   to provide health coverage for: 
 67.6      (1) the officer or firefighter; and 
 67.7      (2) the officer's or firefighter's dependents if the 
 67.8   officer or firefighter was receiving dependent coverage at the 
 67.9   time of the injury under the employer's group health plan. 
 67.10     (c) The employer is responsible for the continued payment 
 67.11  of the employer's contribution for coverage of the officer or 
 67.12  firefighter and, if applicable, the officer's or firefighter's 
 67.13  dependents.  Coverage must continue for the officer or 
 67.14  firefighter and, if applicable, the officer's or firefighter's 
 67.15  dependents until the officer or firefighter reaches the age of 
 67.16  65.  However, coverage for dependents does not have to be 
 67.17  continued after the person is no longer a dependent.  
 67.18     Sec. 16.  Minnesota Statutes 2002, section 299A.465, 
 67.19  subdivision 4, is amended to read: 
 67.20     Subd. 4.  [PUBLIC EMPLOYER REIMBURSEMENT.] The commissioner 
 67.21  of public safety must reimburse a public employer subject to 
 67.22  this section may annually apply to the commissioner of public 
 67.23  safety for reimbursement of for its costs of complying with this 
 67.24  section.  The commissioner shall provide reimbursement to the 
 67.25  public employer out of the public safety officer's benefit 
 67.26  account at the close of each fiscal year.  If funds in the 
 67.27  account are insufficient to cover the total amount of approved 
 67.28  claims, the commissioner must prorate reimbursement to each 
 67.29  public employer.  A public employer that makes a claim for 
 67.30  reimbursement under this subdivision must submit the claim to 
 67.31  the commissioner within 31 days of the end of the fiscal year in 
 67.32  which the expenditure was made. 
 67.33     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002. 
 67.34     Sec. 17.  [PUBLIC EMPLOYER REIMBURSEMENT FOR OFFICER AND 
 67.35  FIREFIGHTER HEALTH INSURANCE COVERAGE UNDER MINNESOTA STATUTES, 
 67.36  SECTION 299A.465; FISCAL YEAR 2002.] 
 68.1      $301,000 is appropriated in fiscal year 2003 from the 
 68.2   general fund to the commissioner of public safety to reimburse 
 68.3   public employers that were denied reimbursement under Minnesota 
 68.4   Statutes, section 299A.465, subdivision 4, in fiscal year 2002.  
 68.5      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 68.6   following final enactment. 
 68.7      Sec. 18.  Laws 2001, First Special Session chapter 8, 
 68.8   article 4, section 11, as amended by Laws 2002, chapter 220, 
 68.9   article 7, section 30, is amended to read: 
 68.10  Sec. 11.  BOARD OF PEACE OFFICER 
 68.11  STANDARDS AND TRAINING                                         
 68.12                                         4,604,000      4,633,000
 68.13                                                        4,494,000 
 68.14  [PEACE OFFICER TRAINING ACCOUNT.] This 
 68.15  appropriation is from the peace officer 
 68.16  training account in the special revenue 
 68.17  fund.  Any receipts credited to the 
 68.18  peace officer training account in the 
 68.19  special revenue fund in the first year 
 68.20  in excess of $4,604,000 must be 
 68.21  transferred and credited to the general 
 68.22  fund.  Any receipts credited to the 
 68.23  peace officer training account in the 
 68.24  special revenue fund in the second year 
 68.25  in excess of $4,633,000 $4,494,000 must 
 68.26  be transferred and credited to the 
 68.27  general fund. 
 68.28  A $139,000 reduction in funds available 
 68.29  to peace officer standards and training 
 68.30  board must be directed to the 
 68.31  educational opportunities program. 
 68.32     Sec. 19.  [OFFICE ABOLISHED.] 
 68.33     The office of ombudsman for the Minnesota state department 
 68.34  of corrections is abolished. 
 68.35     Sec. 20.  [FILE AND DATA TRANSFER.] 
 68.36     On June 30, 2003, the corrections ombudsman shall deliver 
 68.37  to the Minnesota historical society all files, records, and data 
 68.38  under the authority or control of the ombudsman relating to all 
 68.39  of the activities and investigations of the office of the 
 68.40  corrections ombudsman. 
 68.41     Sec. 21.  [REPEALER.] 
 68.42     Minnesota Statutes 2002, sections 241.41; 241.42; 241.43; 
 68.43  241.44; 241.441; and 241.45, are repealed. 
 68.44     Sec. 22.  [EFFECTIVE DATE.] 
 68.45     Sections 1 to 21 are effective the day following final 
 69.1   enactment unless otherwise specified. 
 69.2                              ARTICLE 8 
 69.3                     STATE GOVERNMENT REDUCTIONS 
 69.4   Section 1.  [STATE GOVERNMENT REDUCTIONS.] 
 69.5      The dollar amounts in the columns under "APPROPRIATION 
 69.6   CHANGE," shown in parentheses, are subtracted from the 
 69.7   appropriations in Laws 2001, First Special Session chapter 10, 
 69.8   as amended by Laws 2002, chapters 220 and 374, or other law to 
 69.9   the specified agencies.  The amounts are from the general fund 
 69.10  or other named fund.  The figure "2003" means that the 
 69.11  subtraction from the appropriations listed under the figure is 
 69.12  for the fiscal year ending June 30, 2003. 
 69.13                                              APPROPRIATION CHANGE
 69.14  Sec. 2.  LEGISLATURE 
 69.15  Subdivision 1.  Total Reduction                      (3,095,000)
 69.16  Subd. 2.  House of Representatives     
 69.17                           (640,000) 
 69.18  Subd. 3.  Senate                    
 69.19                         (1,700,000) 
 69.20  Subd. 4.  Legislative Coordinating 
 69.21  Commission                              
 69.22                           (755,000)
 69.23  Sec. 3.  SECRETARY OF STATE                            (164,000)
 69.24  Sec. 4.  GOVERNOR'S OFFICE                             (162,000)
 69.25  Sec. 5.  STATE AUDITOR                                 (390,000)
 69.26  Sec. 6.  ATTORNEY GENERAL                            (1,168,000)
 69.27  Sec. 7.  OFFICE OF STRATEGIC
 69.28  AND LONG-RANGE PLANNING                                (338,000)
 69.29  Sec. 8.  ADMINISTRATION                              (1,411,000)
 69.30  $2,200,000 of the balance in the 
 69.31  facility repair and replacement account 
 69.32  in the state government special revenue 
 69.33  fund is canceled to the general fund.  
 69.34  This is a onetime cancellation. 
 69.35  $950,000 from the voting equipment 
 69.36  grant account is canceled to the 
 69.37  general fund on a onetime basis. 
 69.38  $300 is a reduction in the 
 69.39  appropriation for the state employees' 
 69.40  band. 
 69.41  Sec. 9.  FINANCE                                       (694,000)
 70.1   Sec. 10.  EMPLOYEE RELATIONS                           (305,000)
 70.2   Sec. 11.  REVENUE                                    (1,810,000)
 70.3   Sec. 12.  AMATEUR SPORTS COMMISSION                     (25,000)
 70.4   Sec. 13.  MILITARY AFFAIRS                             (413,000)
 70.5   Sec. 14.  VETERANS AFFAIRS                             (186,000)
 70.6   Sec. 15.  CAMPAIGN FINANCE AND
 70.7   PUBLIC DISCLOSURE BOARD                                 (27,000)
 70.8   Sec. 16.  INVESTMENT BOARD                              (90,000)
 70.9   Sec. 17.  LAWFUL GAMBLING CONTROL BOARD                 (89,000)
 70.10  Sec. 18.  MINNESOTA RACING COMMISSION                   (16,000)
 70.11     Sec. 19.  [CANCELLATION.] 
 70.12     The unspent and unencumbered balance of the appropriation 
 70.13  in Laws 1995, chapter 254, article 1, section 13, to the capitol 
 70.14  area architectural and planning board for predesign and design 
 70.15  of the Korean War veterans' memorial is canceled on a onetime 
 70.16  basis. 
 70.17     Sec. 20.  [REDUCTIONS TO BASE.] 
 70.18     The reductions in sections 2 to 18 are permanent reductions 
 70.19  in the base unless otherwise indicated. 
 70.20     Sec. 21.  [EFFECTIVE DATE.] 
 70.21     Sections 1 to 20 are effective the day following final 
 70.22  enactment unless otherwise specified. 
 70.23                             ARTICLE 9
 70.24                               TAXES
 70.25     Section 1.  Minnesota Statutes 2002, section 289A.56, 
 70.26  subdivision 4, is amended to read: 
 70.27     Subd. 4.  [CAPITAL EQUIPMENT AND CERTAIN BUILDING MATERIALS 
 70.28  REFUNDS; REFUNDS TO PURCHASERS.] Notwithstanding subdivision 3, 
 70.29  for refunds payable under section 297A.75, subdivision 
 70.30  1, clauses (1), (2), (3), and (5), interest is computed from 90 
 70.31  days after the date the refund claim is filed with the 
 70.32  commissioner.  For refunds payable under section 289A.50, 
 70.33  subdivision 2a, interest is computed from the 20th day of the 
 70.34  month following the month of the invoice date for the purchase 
 70.35  which is the subject of the refund, if the refund claim includes 
 70.36  a detailed schedule of purchases made during each of the periods 
 71.1   in the claim.  If the refund claim submitted does not contain a 
 71.2   schedule reflecting purchases made in each period, interest is 
 71.3   computed from the date the claim was filed. 
 71.4      <b>[EFFECTIVE DATE.]</b> This section is effective for refund 
 71.5   claims filed on or after January 15, 2003. 
 71.6      Sec. 2.  Minnesota Statutes 2002, section 297A.75, 
 71.7   subdivision 4, is amended to read: 
 71.8      Subd. 4.  [INTEREST.] Interest must be paid on the refund 
 71.9   under this section at the rate in section 270.76 from the date 
 71.10  the refund claim is filed for taxes paid under subdivision 1, 
 71.11  clauses (1) to (3), and (5), and from 60 90 days after the date 
 71.12  the refund claim is filed with the commissioner for claims filed 
 71.13  under subdivision 1, clauses (4), (6), (7), (8), and (9) until 
 71.14  the refund is paid. 
 71.15     <b>[EFFECTIVE DATE.]</b> This section is effective for refund 
 71.16  claims filed on or after January 15, 2003. 
 71.17                             ARTICLE 10 
 71.18                   CAPITAL PROJECT CANCELLATIONS 
 71.19     Section 1.  [CAPITAL PROJECT CANCELLATION REPORT.] 
 71.20     Notwithstanding Minnesota Statutes, section 16A.642, 
 71.21  subdivision 1, the general fund appropriations that are 
 71.22  unencumbered or otherwise not obligated that are reported by the 
 71.23  commissioner of finance in 2003, under section 16A.642, 
 71.24  subdivision 1, are canceled February 1, 2003. 
 71.25     Sec. 2.  [TRANSPORTATION; PORT DEVELOPMENT ASSISTANCE.] 
 71.26     The unencumbered balance of the appropriation in Laws 2001, 
 71.27  First Special Session chapter 8, article 1, section 2, 
 71.28  subdivision 4, in the statewide accounting system as of January 
 71.29  23, 2003, to the commissioner of transportation for port 
 71.30  development assistance grants, estimated to be $20,832, is 
 71.31  canceled to the general fund. 
 71.32     Sec. 3.  [CHILDREN, FAMILIES, AND LEARNING; YOUTH 
 71.33  ENRICHMENT GRANTS.] 
 71.34     The unencumbered balance of the appropriation in Laws 2000, 
 71.35  chapter 492, article 1, section 5, subdivision 7, in the 
 71.36  statewide accounting system as of January 23, 2003, to the 
 72.1   commissioner of children, families, and learning for youth 
 72.2   enrichment grants, estimated to be $994,504, is canceled to the 
 72.3   general fund. 
 72.4      Sec. 4.  [ADMINISTRATION.] 
 72.5      Subdivision 1.  [BCA HEADQUARTERS.] The unencumbered 
 72.6   balance of the appropriation in Laws 2000, chapter 492, article 
 72.7   1, section 12, subdivision 6, in the statewide accounting system 
 72.8   as of January 23, 2003, to the commissioner of administration 
 72.9   for the bureau of criminal apprehension offices and 
 72.10  laboratories, estimated to be $99,788, is canceled to the 
 72.11  general fund. 
 72.12     Subd. 2.  [PREDESIGN FOR HEALTH AND HUMAN SERVICES 
 72.13  FACILITIES.] The unencumbered balance of the appropriation in 
 72.14  Laws 2000, chapter 492, article 1, section 12, subdivision 9, in 
 72.15  the statewide accounting system as of January 23, 2003, to the 
 72.16  commissioner of administration for predesign of new facilities 
 72.17  for the departments of health and human services, estimated to 
 72.18  be $381, is canceled to the general fund. 
 72.19     Subd. 3.  [AGENCY RELOCATION.] (a) The unencumbered balance 
 72.20  of the appropriation in Laws 2000, chapter 492, article 1, 
 72.21  section 12, subdivision 11, in the statewide accounting system 
 72.22  as of January 23, 2003, to the commissioner of administration 
 72.23  for agency relocation, estimated to be $53,900, is canceled to 
 72.24  the general fund. 
 72.25     (b) The unencumbered balance of the appropriation in Laws 
 72.26  2002, chapter 393, section 13, subdivision 4, in the statewide 
 72.27  accounting system as of January 23, 2003, to the commissioner of 
 72.28  administration for agency relocation, estimated to be 
 72.29  $1,499,608, is canceled to the general fund. 
 72.30     Subd. 4.  [CAPITOL AREA ARCHITECTURAL AND PLANNING 
 72.31  BOARD.] The unencumbered balance of the appropriation in Laws 
 72.32  2002, chapter 393, section 14, in the statewide accounting 
 72.33  system as of January 23, 2003, to the commissioner of 
 72.34  administration for repair and conservation work in areas of the 
 72.35  capitol building, estimated to be $591,614, is canceled to the 
 72.36  general fund. 
 73.1      Subd. 5.  [MINNEAPOLIS; GUTHRIE THEATER.] The unencumbered 
 73.2   balance of the appropriation in Laws 2000, chapter 492, article 
 73.3   1, section 14, subdivision 3, vetoed on May 15, 2000, and 
 73.4   approved by the legislature overriding the veto on May 17, 2000, 
 73.5   as amended by Laws 2002, chapter 393, section 31, subdivision 8, 
 73.6   in the statewide accounting system as of January 23, 2003, to 
 73.7   the commissioner of administration for a grant to the 
 73.8   Minneapolis community development agency for land acquisition 
 73.9   for the Guthrie Theater, estimated to be $2,000,000, is canceled 
 73.10  to the general fund. 
 73.11     Sec. 5.  [PUBLIC FACILITIES AUTHORITY; WIF.] 
 73.12     The unencumbered balance of the appropriation in Laws 2000, 
 73.13  chapter 492, article 1, section 22, subdivision 3, as amended by 
 73.14  Laws 2000, chapter 499, section 15, Laws 2001, First Special 
 73.15  Session chapter 12, section 15, and Laws 2002, chapter 393, 
 73.16  section 81, in the statewide accounting system as of January 23, 
 73.17  2003, to the public facilities authority for the wastewater 
 73.18  infrastructure fund program, estimated to be $125,443, is 
 73.19  canceled to the general fund. 
 73.20     Sec. 6.  [TRADE AND ECONOMIC DEVELOPMENT; REDEVELOPMENT 
 73.21  GRANTS.] 
 73.22     The unencumbered balance of the appropriation in Laws 2000, 
 73.23  chapter 492, article 1, section 22, subdivision 5, in the 
 73.24  statewide accounting system as of January 23, 2003, to the 
 73.25  commissioner of trade and economic development for redevelopment 
 73.26  grants under Minnesota Statutes, section 116J.561, estimated to 
 73.27  be $17,824, is canceled to the general fund.  
 73.28     Sec. 7.  [EFFECTIVE DATE.] 
 73.29     This article is effective the day following final enactment.
 73.30                             ARTICLE 11 
 73.31                     STATE GOVERNMENT LANGUAGE 
 73.32     Section 1.  Minnesota Statutes 2002, section 16A.17, is 
 73.33  amended by adding a subdivision to read: 
 73.34     Subd. 10.  [DIRECT DEPOSIT.] Notwithstanding section 
 73.35  177.23, the commissioner may require direct deposit for all 
 73.36  state employees who are being paid by the state payroll system. 
 74.1      Sec. 2.  Minnesota Statutes 2002, section 16B.47, is 
 74.2   amended to read: 
 74.3      16B.47 [MICROGRAPHICS.] 
 74.4      The commissioner shall may provide micrographics services 
 74.5   and products to meet agency needs.  Within available resources, 
 74.6   the commissioner may also provide micrographic services to 
 74.7   political subdivisions.  Agency plans and programs for 
 74.8   micrographics must be submitted to and receive the approval of 
 74.9   the commissioner prior to implementation.  Upon the 
 74.10  commissioner's approval, subsidiary or independent microfilm 
 74.11  operations may be implemented in other state agencies.  The 
 74.12  commissioner may direct that copies of official state documents 
 74.13  be distributed to official state depositories on microfilm.  
 74.14     Sec. 3.  Minnesota Statutes 2002, section 16B.48, 
 74.15  subdivision 2, is amended to read: 
 74.16     Subd. 2.  [PURPOSE OF FUNDS.] Money in the state treasury 
 74.17  credited to the general services revolving fund and money that 
 74.18  is deposited in the fund is appropriated annually to the 
 74.19  commissioner for the following purposes:  
 74.20     (1) to operate a central store and equipment service; 
 74.21     (2) to operate a central duplication and printing service; 
 74.22     (3) to operate the central mailing service, including 
 74.23  purchasing postage and related items and refunding postage 
 74.24  deposits; 
 74.25     (4) (3) to operate a documents service as prescribed by 
 74.26  section 16B.51; 
 74.27     (5) (4) to provide services for the maintenance, operation, 
 74.28  and upkeep of buildings and grounds managed by the commissioner 
 74.29  of administration; 
 74.30     (6) (5) to operate a materials handling service, including 
 74.31  interagency mail and product delivery, solid waste removal, 
 74.32  courier service, equipment rental, and vehicle and equipment 
 74.33  maintenance; 
 74.34     (7) (6) to provide analytical, statistical, and 
 74.35  organizational development services to state agencies, local 
 74.36  units of government, metropolitan and regional agencies, and 
 75.1   school districts; 
 75.2      (8) (7) to operate a records center and provide 
 75.3   micrographics products and services; and 
 75.4      (9) (8) to perform services for any other agency.  Money 
 75.5   may be expended for this purpose only when directed by the 
 75.6   governor. The agency receiving the services shall reimburse the 
 75.7   fund for their cost, and the commissioner shall make the 
 75.8   appropriate transfers when requested.  The term "services" as 
 75.9   used in this clause means compensation paid officers and 
 75.10  employees of the state government; supplies, materials, 
 75.11  equipment, and other articles and things used by or furnished to 
 75.12  an agency; and utility services and other services for the 
 75.13  maintenance, operation, and upkeep of buildings and offices of 
 75.14  the state government. 
 75.15     Sec. 4.  Minnesota Statutes 2002, section 16B.49, is 
 75.16  amended to read: 
 75.17     16B.49 [CENTRAL MAILING SYSTEM.] 
 75.18     The commissioner shall may maintain and operate for state 
 75.19  agencies, departments, institutions, and offices a central mail 
 75.20  handling unit.  Official, outgoing mail for units in St. Paul 
 75.21  must may be required to be delivered unstamped to the unit.  The 
 75.22  unit shall may also operate an interoffice mail distribution 
 75.23  system.  The department may add personnel and acquire equipment 
 75.24  that may be necessary to operate the unit efficiently and 
 75.25  cost-effectively.  Account must be kept of the postage required 
 75.26  on that mail, which is then a proper charge against the agency 
 75.27  delivering the mail.  To provide funds for the payment of 
 75.28  postage, each agency shall may be required to make advance 
 75.29  payments to the commissioner sufficient to cover its postage 
 75.30  obligations for at least 60 days.  For purposes of this section, 
 75.31  the Minnesota state colleges and universities is a state agency. 
 75.32     Sec. 5.  Minnesota Statutes 2002, section 16C.08, 
 75.33  subdivision 2, is amended to read: 
 75.34     Subd. 2.  [DUTIES OF CONTRACTING AGENCY.] Before an agency 
 75.35  may seek approval of a professional or technical services 
 75.36  contract valued in excess of $5,000, it must certify to the 
 76.1   commissioner that: 
 76.2      (1) no current state employee is able and available to 
 76.3   perform the services called for by the contract; 
 76.4      (2) the normal competitive bidding mechanisms will not 
 76.5   provide for adequate performance of the services; 
 76.6      (3) (2) the contractor has certified that the product of 
 76.7   the services will be original in character; 
 76.8      (4) (3) reasonable efforts were made to publicize the 
 76.9   availability of the contract to the public; 
 76.10     (5) (4) the agency has received, reviewed, and accepted a 
 76.11  detailed work plan from the contractor for performance under the 
 76.12  contract, if applicable; 
 76.13     (6) (5) the agency has developed, and fully intends to 
 76.14  implement, a written plan providing for the assignment of 
 76.15  specific agency personnel to a monitoring and liaison function, 
 76.16  the periodic review of interim reports or other indications of 
 76.17  past performance, and the ultimate utilization of the final 
 76.18  product of the services; and 
 76.19     (7) (6) the agency will not allow the contractor to begin 
 76.20  work before funds are fully encumbered.  
 76.21     Sec. 6.  Minnesota Statutes 2002, section 16C.08, 
 76.22  subdivision 3, is amended to read: 
 76.23     Subd. 3.  [PROCEDURE FOR PROFESSIONAL OR TECHNICAL SERVICES 
 76.24  CONTRACTS.] Before approving a proposed contract for 
 76.25  professional or technical services, the commissioner must 
 76.26  determine, at least, that: 
 76.27     (1) all provisions of subdivision 2 and section 16C.16 have 
 76.28  been verified or complied with; 
 76.29     (2) the work to be performed under the contract is 
 76.30  necessary to the agency's achievement of its statutory 
 76.31  responsibilities and there is statutory authority to enter into 
 76.32  the contract; 
 76.33     (3) the contract will not establish an employment 
 76.34  relationship between the state or the agency and any persons 
 76.35  performing under the contract; 
 76.36     (4) the contractor and agents are not employees of the 
 77.1   state; 
 77.2      (5) no agency has previously performed or contracted for 
 77.3   the performance of tasks which would be substantially duplicated 
 77.4   under the proposed contract; 
 77.5      (6) the contracting agency has specified a satisfactory 
 77.6   method of evaluating and using the results of the work to be 
 77.7   performed; and 
 77.8      (7) (6) the combined contract and amendments will not 
 77.9   exceed five years, unless otherwise provided for by law.  The 
 77.10  term of the original contract must not exceed two years unless 
 77.11  the commissioner determines that a longer duration is in the 
 77.12  best interest of the state. 
 77.13     Sec. 7.  Minnesota Statutes 2002, section 16C.09, is 
 77.14  amended to read: 
 77.15     16C.09 [PROCEDURE FOR SERVICE CONTRACTS.] 
 77.16     (a) Before entering into or approving a service contract, 
 77.17  the commissioner must determine, at least, that: 
 77.18     (1) no current state employee is able and available to 
 77.19  perform the services called for by the contract; 
 77.20     (2) the work to be performed under the contract is 
 77.21  necessary to the agency's achievement of its statutory 
 77.22  responsibilities and there is statutory authority to enter into 
 77.23  the contract; 
 77.24     (3) (2) the contract will not establish an employment 
 77.25  relationship between the state or the agency and any persons 
 77.26  performing under the contract; 
 77.27     (4) (3) the contractor and agents are not employees of the 
 77.28  state; 
 77.29     (5) (4) the contracting agency has specified a satisfactory 
 77.30  method of evaluating and using the results of the work to be 
 77.31  performed; and 
 77.32     (6) (5) the combined contract and amendments will not 
 77.33  exceed five years without specific, written approval by the 
 77.34  commissioner according to established policy, procedures, and 
 77.35  standards, or unless otherwise provided for by law.  The term of 
 77.36  the original contract must not exceed two years, unless the 
 78.1   commissioner determines that a longer duration is in the best 
 78.2   interest of the state.  
 78.3      (b) For purposes of paragraph (a), clause (1), employees 
 78.4   are available if qualified and: 
 78.5      (1) are already doing the work in question; or 
 78.6      (2) are on layoff status in classes that can do the work in 
 78.7   question. 
 78.8   An employee is not available if the employee is doing other 
 78.9   work, is retired, or has decided not to do the work in question. 
 78.10     Sec. 8.  Minnesota Statutes 2002, section 16E.07, 
 78.11  subdivision 9, is amended to read: 
 78.12     Subd. 9.  [AGGREGATION OF SERVICE DEMAND.] The office shall 
 78.13  identify opportunities to aggregate demand for technical 
 78.14  services required by government units for online activities and 
 78.15  may contract with governmental or nongovernmental entities to 
 78.16  provide services.  These contracts are not subject to the 
 78.17  requirements of chapters 16B and 16C, except sections 16C.04, 
 78.18  16C.07, 16C.08, and 16C.09. 
 78.19     Sec. 9.  Minnesota Statutes 2002, section 136F.77, 
 78.20  subdivision 3, is amended to read: 
 78.21     Subd. 3.  [NO ABROGATION.] Nothing in this section shall 
 78.22  abrogate the provisions of sections 43A.047 and section 136F.581.
 78.23     Sec. 10.  Minnesota Statutes 2002, section 268.186, is 
 78.24  amended to read: 
 78.25     268.186 [RECORDS.] 
 78.26     (a) Each employer shall keep true and accurate records for 
 78.27  the periods of time and containing the information the 
 78.28  commissioner may require.  For the purpose of administering this 
 78.29  chapter, the commissioner has the power to examine, or cause to 
 78.30  be supplied or copied, any books, correspondence, papers, 
 78.31  records, or memoranda that are relevant, whether the books, 
 78.32  correspondence, papers, records, or memoranda are the property 
 78.33  of or in the possession of the employer or any other person at 
 78.34  any reasonable time and as often as may be necessary. 
 78.35     (b) The commissioner may make summaries, compilations, 
 78.36  photographs, duplications, or reproductions of any records, or 
 79.1   reports that the commissioner considers advisable for the 
 79.2   preservation of the information contained therein.  Any 
 79.3   summaries, compilations, photographs, duplications, or 
 79.4   reproductions shall be admissible in any proceeding under this 
 79.5   chapter.  Regardless of any restrictions contained in section 
 79.6   16B.50, The commissioner may duplicate records, reports, 
 79.7   summaries, compilations, instructions, determinations, or any 
 79.8   other written or recorded matter pertaining to the 
 79.9   administration of this chapter. 
 79.10     (c) Regardless of any law to the contrary, the commissioner 
 79.11  may provide for the destruction of any records, reports, or 
 79.12  reproductions thereof, or other papers, that are more than two 
 79.13  years old, and that are no longer necessary for determining 
 79.14  employer liability or an applicant's unemployment benefit rights 
 79.15  or for the administration of this chapter, including any 
 79.16  required audit.  The commissioner may provide for the 
 79.17  destruction or disposition of any record, report, or other paper 
 79.18  that has been photographed, duplicated, or reproduced. 
 79.19     Sec. 11.  [SALARY SAVINGS.] 
 79.20     Each appointing authority in the executive, legislative, 
 79.21  and judicial branches of state government, the Minnesota state 
 79.22  retirement system, the teachers retirement system, the public 
 79.23  employees retirement system, the metropolitan council, and the 
 79.24  state historical society shall determine whether use of 
 79.25  mandatory unpaid leave is necessary to meet its budget reduction 
 79.26  goals.  Each appointing authority may require unpaid leave and 
 79.27  shall establish the number of hours to be used by its employees, 
 79.28  excluding intermittent and emergency appointments, which must 
 79.29  not exceed 80 hours for full-time employees and a proportional 
 79.30  share of 80 hours for less than full-time employees.  Employees 
 79.31  may request and appointing authorities may approve additional 
 79.32  hours of unpaid leave. 
 79.33     Unpaid leave must be used between the effective date of 
 79.34  this section and June 30, 2003.  Employees on unpaid leave under 
 79.35  this section shall continue to accrue vacation and sick leave, 
 79.36  seniority, and service credit in state retirement plans 
 80.1   permitting service credit for authorized leaves of absence and 
 80.2   shall be eligible for paid holidays and insurance benefits as if 
 80.3   the employee had worked the hours of unpaid leave.  For purposes 
 80.4   of overtime, hours of unpaid leave must be treated as paid 
 80.5   vacation leave.  For employees taking unpaid leave under this 
 80.6   section, any requirement to reduce vacation leave balances by 
 80.7   the end of the fiscal year is suspended for the year ending June 
 80.8   30, 2003.  Appointing authorities retain discretion to approve 
 80.9   or disapprove when leave is used and to schedule leave for 
 80.10  employees who have not arranged by April 1, 2003, to take the 
 80.11  required number of hours.  Unpaid leave under this section is 
 80.12  not subject to the provisions of collective bargaining 
 80.13  agreements and plans for unrepresented employees and is not 
 80.14  subject to collective bargaining under Minnesota Statutes, 
 80.15  chapter 179A. 
 80.16     Sec. 12.  [GRANTS.] 
 80.17     Notwithstanding any law to the contrary, no executive 
 80.18  branch official may take an action that would reduce an 
 80.19  appropriation for grants and contracts for transmission of 
 80.20  legislative activities.  The executive branch must continue to 
 80.21  make available the full amount of the appropriation for these 
 80.22  purposes in Laws 2001, First Special Session chapter 10, article 
 80.23  1, section 12, subdivision 8. 
 80.24     Sec. 13.  [REPEALER.] 
 80.25     Minnesota Statutes 2002, sections 16B.50; 16C.07; and 
 80.26  43A.047, are repealed. 
 80.27     Sec. 14.  [EFFECTIVE DATE.] 
 80.28     Sections 1 to 13 are effective the day following final 
 80.29  enactment. 
 80.30                             ARTICLE 12
 80.31                 AGRICULTURE AND RURAL DEVELOPMENT
 80.32  Section 1.  [AGRICULTURE AND RURAL DEVELOPMENT APPROPRIATIONS 
 80.33  AND REDUCTIONS.] 
 80.34     The dollar amounts in the columns under "APPROPRIATION 
 80.35  CHANGE" are added to or, if shown in parentheses, are subtracted 
 80.36  from the appropriations in Laws 2001, First Special Session 
 81.1   chapter 2, as amended, or other law to the specified agencies.  
 81.2   The appropriations or reductions are from the general fund for 
 81.3   the fiscal year ending June 30, 2003.  
 81.4                                                          2003 
 81.5   TOTAL APPROPRIATION CHANGE                       $   (2,492,000)
 81.6                                               APPROPRIATION CHANGE 
 81.7   Sec. 2.  COMMISSIONER OF AGRICULTURE                            
 81.8   Subdivision 1.  Total Reduction                      (1,502,000) 
 81.9   The reductions from the amounts 
 81.10  appropriated in Laws 2001, First 
 81.11  Special Session chapter 2, section 9, 
 81.12  are shown in subdivisions 2 to 5. 
 81.13  Subd. 2.  Protection Service 
 81.14                       (527,000)
 81.15  $7,000 of this reduction is from the 
 81.16  appropriation for activities of the 
 81.17  dairy development and profitability 
 81.18  enhancement teams. 
 81.19  Subd. 3.  Agriculture Marketing 
 81.20  and Development
 81.21                       (806,000) 
 81.22  $25,000 of this reduction is from the 
 81.23  appropriation for the Minnesota 
 81.24  certification program under Minnesota 
 81.25  Statutes, section 17.1025. 
 81.26  $12,000 of this reduction is from the 
 81.27  appropriation for beaver control grants 
 81.28  under Minnesota Statutes, section 
 81.29  17.110. 
 81.30  $161,000 of this reduction is from the 
 81.31  appropriation for grants to farmers for 
 81.32  demonstration projects involving 
 81.33  sustainable agriculture as authorized 
 81.34  in Minnesota Statutes, section 17.116. 
 81.35  $207,000 of this reduction is from the 
 81.36  appropriation for value-added 
 81.37  agricultural product processing and 
 81.38  marketing grants under Minnesota 
 81.39  Statutes, section 17.101, subdivision 5.
 81.40  Subd. 4.  Administration and 
 81.41  Financial Assistance 
 81.42                       (169,000)
 81.43  $89,000 is transferred from the methane 
 81.44  digester loan account in Minnesota 
 81.45  Statutes, section 41B.049, subdivision 
 81.46  2, to the general fund. 
 81.47  $319,000 is transferred from the 
 81.48  balance in the sustainable agriculture 
 81.49  loan program in the special revenue 
 81.50  fund to the general fund. 
 82.1   $1,000 of this reduction is from the 
 82.2   appropriation for family farm security 
 82.3   interest payment adjustments. 
 82.4   $65,000 is from the balance of the 
 82.5   appropriation made in Laws 2000, 
 82.6   chapter 488, article 3, section 5, for 
 82.7   grants to one or more cooperative 
 82.8   associations organized under Minnesota 
 82.9   Statutes, chapter 308A, primarily for 
 82.10  the purpose of facilitating the 
 82.11  production and marketing of short 
 82.12  rotation woody crops. 
 82.13  Any refunds received by the state from 
 82.14  the appropriation in Laws 2000, chapter 
 82.15  488, article 3, section 5, for short 
 82.16  rotation woody crops cancel to the 
 82.17  general fund. 
 82.18  Subd. 5.  Ethanol Producer 
 82.19  Payments 
 82.20  Notwithstanding other law to the 
 82.21  contrary, total payments from the 
 82.22  ethanol development account to all 
 82.23  producers for the biennium ending June 
 82.24  30, 2003, may not exceed $63,775,000.  
 82.25  For payments made during the second and 
 82.26  third quarters of fiscal year 2003, the 
 82.27  commissioner shall make payments to 
 82.28  producers at the rate of $0.16 per 
 82.29  gallon of eligible ethanol production.  
 82.30  In the fourth quarter of fiscal year 
 82.31  2003 the payments shall be prorated 
 82.32  across all eligible production.  In 
 82.33  recognition of the state's long-term 
 82.34  commitment to the ethanol industry, it 
 82.35  is the intent of the legislature to 
 82.36  restore producer payments withheld 
 82.37  during periods of budget crisis by 
 82.38  extending the total quarters of 
 82.39  eligibility for each eligible plant 
 82.40  beyond the initial ten years after 
 82.41  capacity came into production. 
 82.42  Sec. 3.  BOARD OF ANIMAL HEALTH                       (103,000)
 82.43  Sec. 4.  AGRICULTURAL UTILIZATION                     (887,000)
 82.44  RESEARCH INSTITUTE
 82.45     Sec. 5.  [EFFECTIVE DATE.] 
 82.46     Sections 1 to 4 are effective the day following final 
 82.47  enactment.